New JerseyA3973220th Legislature (2024-2025)HouseWALLET

Revises law concerning patient referrals to substance use disorder treatment facilities, recovery residences, and clinical laboratories.*

Sponsored By: Verlina Reynolds-Jackson (Democratic), Alexander Schnall (Democratic), Anthony S. Verrelli (Democratic), Joseph F. Vitale (Democratic), Benjie E. Wimberly (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 0 costs, 1 mixed.

Patient referral protections bring tougher penalties

Since August 11, 2025, New Jersey bans paying, offering, seeking, or receiving kickbacks tied to patient referrals. This protects patients referred to covered substance use treatment facilities, recovery residences, and clinical labs. Violations, including knowingly helping, conspiring, or urging others to violate the ban, are third-degree crimes requiring restitution and a $50,000 fine per offense. Fees, commissions, and rebates remain allowed when they do not vary with patient counts, treatment duration, level, volume or type, or insurer benefits. The Department of Health can investigate covered facilities and labs; Community Affairs can investigate recovery residences. After finding violations, these agencies can suspend or revoke the relevant licenses or certifications, or impose fines up to $20,000 per violation.

Sponsors & Cosponsors

Sponsors

  • Verlina Reynolds-Jackson

    Democratic • House

  • Alexander Schnall

    Democratic • House

  • Anthony S. Verrelli

    Democratic • House

  • Joseph F. Vitale

    Democratic • Senate

  • Benjie E. Wimberly

    Democratic • Senate

Cosponsors

  • Renee C. Burgess

    Democratic • Senate

  • Patrick J. Diegnan Jr.

    Democratic • Senate

  • McCann Stamato, Barbara

    Affiliation unavailable

  • Tennille R. McCoy

    Democratic • House

  • Declan J. O'Scanlon Jr.

    Republican • Senate

  • William B. Sampson IV

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 194 • No: 0

House vote • 6/30/2025

CONCUR IN SA

Yes: 80 • No: 0

Senate vote • 3/24/2025

3RDG FINAL PASSAGE

Yes: 39 • No: 0

House vote • 9/26/2024

3RDG FINAL PASSAGE

Yes: 75 • No: 0

Actions Timeline

  1. Approved by Governor — P.L.2025, c.121.

    8/11/2025Governor
  2. Passed Assembly, PBH — (80-0-0)

    6/30/2025House
  3. Received in Assembly, 2RAC

    3/24/2025House
  4. Passed Senate — (39-0)

    3/24/2025Senate
  5. Substituted for S3952 (1R)

    3/24/2025Senate
  6. REP/SCA, 2nd Reading in Senate

    3/17/2025Senate
  7. Referred to Senate Budget and Appropriations Committee

    3/3/2025Senate
  8. Reported, 2nd Reading in Senate

    3/3/2025Senate
  9. Received in Senate, Referred to Senate Health, Human Services and Senior Citizens Committee

    9/30/2024Senate
  10. Passed Assembly — (75-0-0)

    9/26/2024House
  11. Reported, 2nd Reading in Assembly

    6/24/2024House
  12. Reported, Referred to Assembly Appropriations Committee

    5/13/2024House
  13. Introduced, 1st Reading in Assembly, Referred to Assembly Oversight, Reform and Federal Relations Committee

    2/27/2024House

Bill Text

  • Version PL2025

    10/3/2025

  • Version AL2025

    9/16/2025

  • 3/25/25; 1R

    3/25/2025

  • Senate Budget and Appropriations (3/17/25 1R)

    3/25/2025

  • Senate Budget and Appropriations Substitute (3/17/25)

    3/18/2025

  • Senate Health, Human Services and Senior Citizens Substitute (3/3/25)

    3/4/2025

  • As Introduced

    9/27/2024

  • 6/25/24; as introduced

    6/25/2024

  • Assembly Appropriations Substitute (6/24/24)

    6/25/2024

  • Assembly Oversight, Reform and Federal Relations Substitute (5/13/24)

    5/14/2024

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