“It is important to protect individuals dealing with addiction," said Acting Governor Way. "We must ensure proper treatment without exploitation by holding providers accountable and implementing strong safeguards. Too often, vulnerable people are targeted by those who prioritize profit over care, which is unacceptable.”
“It is critical that laws are in place to protect individuals and families when they are at their most vulnerable – like when seeking recovery help from drug and alcohol addiction,” said Department of Community Affairs Commissioner Jacquelyn A. Suárez. “DCA’s Division of Codes and Standards works to ensure that violators will be held accountable and penalized for misdeeds.”
"New Jersey is sending a clear message that we will not tolerate predatory practices toward individuals seeking treatment for substance use disorder,” said Department of Health Acting Commissioner Jeff Brown. “It’s critical that New Jersey’s health care facilities serving these individuals advertise their services honestly and truthfully. When they don’t, they should be held accountable."
“Today’s bill signings represent a major step forward in protecting individuals and families seeking help for substance use disorders,” Human Services Commissioner Sarah Adelman said. “By strengthening oversight and eliminating deceptive marketing practices, we are ensuring that New Jersey residents can access care that is ethical, transparent, and effective. These laws reflect our unwavering commitment to supporting recovery with dignity and integrity, while holding providers to the highest standards of accountability.”
“Successful treatment for substance-use disorders depends on honest providers and professionals who refer patients to the providers most suited to their needs. These bills strengthen our ability to go after providers who make false claims about their treatment and those who would undermine a vulnerable person’s chances for recovery by exploiting the situation for kickbacks and other forms of illicit profit,” said Attorney General Matthew J. Platkin. “The bills Lieutenant Governor Way is signing today are a testament to New Jersey’s commitment to combating the substance-use epidemic.”
"People seeking help for substance use disorder deserve honesty, transparency, and dignity," said New Jersey Public Defender Jennifer Sellitti. "Deceptive marketing tactics exploit individuals and families during their most vulnerable moments. This legislation represents a crucial step toward holding treatment providers and recovery residences to the highest ethical standards, ensuring that people can trust the care and support they seek."
"These bills are a positive step for those citizens of our State who suffered from the type of shortcomings in the addiction rehabilitation industry SCI uncovered," said Bruce Keller, Executive Director of the New Jersey State Commission of Investigation. "They also underscore the importance of SCI's work in ensuring New Jersey maintains its reputation as a state readily capable of legislative reforms when problems are brought to light."
The first bill (A3973/S3952) revises existing law on patient referrals to substance use disorder treatment facilities, recovery residences, and clinical laboratories. It reclassifies patient brokering from a fourth-degree to a third-degree crime, imposes mandatory $50,000 fines per violation, and requires restitution to affected patients or insurers.
Inspired by a report from the New Jersey State Commission of Investigation (SCI), this bill targets “patient brokering,” where individuals or entities exploit people struggling with addiction by accepting kickbacks to steer them into treatment centers based on financial incentives rather than clinical need or quality of care. The bill clarifies that the law applies to both for-profit and nonprofit health care facilities, as well as recovery residences like sober living homes.
According to the Department of Human Services, 44,350 patients were admitted for substance use treatment in 2023. Ensuring access to high-quality treatment is critical to New Jersey’s response to the opioid epidemic.
The prime sponsors of A3973/S3952 are Assemblyman Verrelli, Assemblyman Schnall, Assemblywoman Reynolds-Jackson, Senator Vitale, and Senator Wimberly.
“Families deserve to know that their loved ones are being referred to treatment centers for the right reasons, and just as importantly, that those seeking help aren’t being misled by deceptive and unethical schemes,” said Assemblyman Anthony Verrelli. “That’s why these bills are so important, cracking down on exploitative practices that prey on people in crisis and ensuring patients have access to accurate, honest information, not false promises that stand in the way of recovery.”
"People battling addiction should not have to worry whether they’re being manipulated for someone else’s financial benefit, something that is not only unethical but also deeply harmful," said Assemblyman Avi Schnall. "Every person deserves access to treatment that’s chosen for the right reasons, and through A3973, we're putting safeguards in place to stop these predatory referral schemes and help hold those responsible fully accountable."
“When the referral process is compromised, the entire foundation of treatment and recovery is at risk,” said Assemblywoman Verlina Reynolds-Jackson. “People deserve to know they’re being guided toward care that’s right for them, not care that benefits someone else’s bottom line. With this bill, we're empowering patients, and I'm so grateful to see it get signed into law."
“The SCI’s reported findings last February were disturbing, and, as the State invests more dollars in the treatment of addiction, we need to ensure that patients are actually being treated rather than used for profit,” said Senator Vitale, the Chair of the Senate Health, Human Services and Senior Citizens Committee. “This legislation will help to combat the corruption that has resulted from the referral of patients for personal profit and from deceptive marketing practices that are too-often utilized within the industry.”
“These reforms are about restoring integrity and trust in a system that should be focused entirely on healing,” said Senator Wimberly. “People seeking help for addiction deserve clear, honest information and decisions that are made in their best interest, not driven by greed. By putting strong safeguards in place, we can protect patients and ensure that public resources are used to support real recovery.”
The second bill (A3974/S3955) prohibits the use of deceptive marketing practices by addiction treatment providers. This bill regulates the marketing of addiction treatment services, requiring all advertising to be accurate, complete, and transparent about the services offered, their location, and the provider’s identity and affiliations. Similarly, this legislation authorizes the Department of Health and the Department of Community Affairs to investigate violations and impose civil penalties of up to $20,000 per offense.
The prime sponsors of A3974/S3955 are Assemblyman Verrelli, Assemblyman Miller, Assemblywoman Bagolie, Senator Vitale, and Senator M. Teresa Ruiz
“When someone is in crisis, they deserve to feel confident that the information they receive is reliable,” said Assemblywoman Rosy Bagolie. “This bill puts common-sense safeguards in place to ensure transparency and accountability among treatment providers, and I’m thrilled to see it signed into law.”
“Deceptive marketing practices not only erode trust but can also derail the recovery journeys of individuals fighting addiction,” said Assemblyman Cody Miller. “A3974 is about putting the patient's well-being first and will ensure that everyone can continue to have faith in the treatment process.”
“Treatment for substance use disorder is a lifeline for those grappling with addiction, and it is reprehensible that patients are being exploited by dishonest marketing tactics in moments of vulnerability,” said Senate Majority Leader M. Teresa Ruiz. “These practices too often put a roadblock on the path to sobriety for those who need help, and must be curbed if we are to effectively treat substance use disorder.”
"We commend the Governor, Acting Governor, and legislature for taking decisive action to protect the many individuals and families across New Jersey impacted by substance use disorder, especially as they make the brave and critical decision to reach out for help," said Kenny Esser, executive vice president Hackensack Meridian behavioral health and president of Carrier Clinic. "These laws send a clear message that exploitation has no place in treatment and they represent a significant step forward in ensuring that individuals with substance use disorder who place their trust in us are protected, and that treatment is ethical, transparent and focused on recovery."
“NJAMHAA has long supported actions to deter deceptive marketing practices and patient brokering that is directed at individuals with a substance use disorder when they are most vulnerable,” said New Jersey Association of Mental Health and Addiction Agencies (NJAMHAA) President and CEO Debra L. Wentz, Ph.D. These bills go a long way to prevent ‘bad actors’ from preying on those in need, often at great cost, both financially and health-wise. This legislation will help assure New Jerseyans can access quality, local substance use treatment services of their own choosing. We could not be more pleased with the two bills Acting Governor Way is signing today. On behalf of those in need of treatment, we thank her, the Administration and the sponsors of A3973 and A3974.”
“I am honored and grateful to join Acting Governor Tahesha Way for this important moment as these critical bills are signed into law. As someone in sustained remission from opioid use disorder, I commend Governor Murphy, Acting Governor Way, and the New Jersey Legislature, for their leadership in passing these vital bills,” said Nikki Tierney, Policy Analyst, National Center for Advocacy and Recovery (NCAAR). “Their actions send a clear and critical message that unethical referral and marketing practices will no longer be tolerated, and that health and wellness for people with substance use disorders are a priority for this administration.”
"Critical laws like this are what happens when people with lived experience are involved in the process. The people who experience the problem are usually the ones who have a solution. We applaud our elected officials for listening and trusting our Not One More members. This legislation will empower our state agencies to rigorously pursue and penalize those who exploit individuals seeking help, ensuring that real recovery is prioritized over profit. You want to go after waste, fraud and abuse, here it is. Corporations profiting off our pain. Some places build relapses into their business models and that is not ok. With rigorous implementation, these bills will hold shady treatment centers and bad actors accountable” said Elissa Tierney, Lead Organizer of the Not One More campaign.
Together, these measures safeguard vulnerable residents by promoting honesty and transparency within New Jersey’s substance use treatment industry.
Anyone struggling with drug addiction is encouraged to call 1-844-ReachNJ – a 24-hour-a-day, seven-day-a-week helpline