LEGISLATIVE FISCAL ESTIMATE

[First Reprint]

SENATE, No. 3931

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: JUNE 16, 2025

 

 

SUMMARY

 

Synopsis:

Updates requirements for licensure in occupational therapy.

Type of Impact:

Annual State expenditure increase.

Agencies Affected:

Department of Law and Public Safety.

 

 

Office of Legislative Services Estimate

Annual Fiscal Impact

 

 

State Expenditure Increase

Indeterminate

 

 

 

 

·         The Office of Legislative Services (OLS) finds that the bill will result in an indeterminate expenditure increase to the Division of Consumer Affairs to initially develop and then periodically update continuing competence and professional development requirements for licensed occupational therapists and licensed occupational therapy assistants to renew licenses.  Depending on the Occupational Therapy Advisory Council’s resource allocation policies, however, the added workload may or may not augment State administrative expenditures and be offset by biennial fee revenues.

 

 

BILL DESCRIPTION

 

      This bill establishes a requirement for the Division of Consumer Affairs in the Department of Law and Public Safety, in consultation with the Occupational Therapy Advisory Council, to develop continuing competence and professional development requirements in order for licensed occupational therapists and licensed occupational therapy assistants to renew licenses.

      The bill adds a definition of “occupational therapy services” and expands the types of issues in which occupational therapy may be sought to include parental health, disaster preparedness and emergency management, and population health management.

      The bill will also allow members of the council to serve a maximum of three consecutive sessions and for the council to meet at least four times annually compared to twice a year currently.

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS finds that the bill will result in an indeterminate expenditure increase to the Division of Consumer Affairs to initially develop and then periodically update continuing competence and professional development requirements for licensed occupational therapists and licensed occupational therapy assistants to renew licenses.  Depending on the Occupational Therapy Advisory Council’s resource allocation policies, however, the added workload may or may not augment State administrative expenditures and be offset by biennial fee revenues.

      According to the FY 2026 Governor’s Budget, there were 10,069 licenses in force under the Occupational Therapy Advisory Council in FY 2024, which is expected to stay more or less flat through FY 2026.  The council issues and sets fees for these licenses – the two-year occupational therapist license fee is $160 and the occupational therapist assistant license fee is $100.

      The bill also requires the council to meet at least four times annually, instead of the current requirement of twice a year.  The OLS estimates a marginal expenditure increase as a result of the additional meeting dates, as members serve without compensation and are only to be reimbursed for the expenses they incur in the performance of their duties.

      Additionally, during the May 22, 2025 New Jersey Senate Commerce Committee hearing, it was indicated that the requirement to add these continuing education requirements may be an initial step for New Jersey occupational therapy licensees to participate in interstate compact licensure; however, New Jersey is currently not a member of the Occupational Therapy Licensure Compact to date, according to the National Board for Certification in Occupational Therapy.

 

Section:

Law and Public Safety

Analyst:

Kristin Brunner Santos

Lead Fiscal Analyst

Approved:

Thomas Koenig

Legislative Budget and Finance Officer

 

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).