Bill Text: NJ S3254 | 2024-2025 | Regular Session | Introduced
Bill Title: Prohibits substance use disorder treatment providers from using deceptive marketing practices.
Spectrum: Bipartisan Bill
Status: (Introduced) 2024-05-16 - Introduced in the Senate, Referred to Senate Health, Human Services and Senior Citizens Committee [S3254 Detail]
Download: New_Jersey-2024-S3254-Introduced.html
Sponsored by:
Senator DOUGLAS J. STEINHARDT
District 23 (Hunterdon, Somerset and Warren)
Senator BRIAN P. STACK
District 33 (Hudson)
SYNOPSIS
Prohibits substance use disorder treatment providers from using deceptive marketing practices.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning substance use treatment providers and supplementing Title 56 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
"Recovery residence" means housing with a home-like atmosphere, which is available in either a professionally-managed facility or a peer-managed facility, and which provides a sober living environment and alcohol- and drug-free living accommodations to individuals with substance use disorders, or to individuals with co-occurring mental health and substance use disorders, but which does not provide clinical treatment services for mental health or substance use disorders. "Recovery residence" includes, but is not limited to, a facility that is commonly referred to as a sober living home.
"Treatment provider" means a facility licensed in accordance with section 8 of P.L.1975, c.305 (C.26:2B-14) for substance use disorder treatment or services, a substance use disorder treatment facility issued a certificate of approval pursuant to P.L.1970, c.334 (C.26:2G-21 et seq.), or a recovery residence located within the State.
2. Any marketing or advertising materials published or disseminated by a treatment provider shall provide accurate and complete information, in plain language, and shall include the following:
a. information on the types and methods of services provided;
b. information about the location in which services are provided; and
c. the treatment provider's name and brand name.
3. a. It shall be an unlawful practice, pursuant to P.L.1960, c.39 (C.56:8-1 et seq.), for a treatment provider to:
(1) make a false or misleading statement about the treatment provider's status as an in-network or out-of-network provider;
(2) provide, or direct any other person or entity to provide, false or misleading information about the identity of, or contact information for, any treatment provider;
(3) include false or misleading information about the Internet address of any treatment provider's website, or to surreptitiously direct or redirect a person to another website;
(4) suggest or imply that a relationship with another treatment provider exists, unless the other treatment provider has provided express, written consent to indicate that relationship;
(5) make a false or misleading statement about the substance use disorder treatment services the treatment provider provides; or
(6) make a false or misleading statement about the geographic location of the treatment provider or the geographic location in which the treatment provider provides substance use disorder treatment services.
b. Any treatment provider who violates the provisions of subsection a. of this section shall be liable to a civil penalty of not more than $1,000 for each violation. The civil penalty shall be collected pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.), in a summary proceeding before the municipal court having jurisdiction.
c. Any person who suffers any injury or damages, including, but not limited to, paying for services that were performed in violation of this act, as a result of the use or employment by a treatment provider of any method, act, or practice declared unlawful under this act may bring an action or assert a counterclaim therefor in any court of competent jurisdiction. In any action under this subsection, the court shall, in addition to any appropriate legal or equitable relief, award threefold the damages sustained by any person in interest. In all actions under this section, the court shall also award reasonable attorney's fees, filing fees, and reasonable costs of suit.
d. The Office of Licensing in the Department of Health may investigate alleged violations of this act. Upon finding a violation, the division may suspend or revoke the treatment provider's license or certification, if applicable, or may impose a civil penalty against the treatment provider. If the department imposes a civil penalty, the civil penalty shall be not more than $1,000 for each violation.
4. This act shall take effect on the 30th day after the date of enactment.
STATEMENT
This bill prohibits the use of deceptive marketing practices by substance use disorder treatment providers.
The bill defines a "treatment provider" as a facility licensed in accordance with section 8 of P.L.1975, c.305 (C.26:2B-14) for substance use disorder treatment or services, a substance use disorder treatment facility issued a certificate of approval pursuant to P.L.1970, c.334 (C.26:2G-21 et seq.), or a recovery residence located within the State.
The bill requires each treatment provider in the State to provide accurate and complete information, in plain language, on the types and methods of services provided, the location in which services are provided, and the treatment provider's name and brand name when publishing or disseminating any marketing or advertising materials.
Under the bill, it will be an unlawful practice for a treatment provider to:
(1) make a false or misleading statement about the treatment provider's status as an in-network or out-of-network provider;
(2) provide, or direct any other person or entity to provide, false or misleading information about the identity of, or contact information for, any treatment provider;
(3) include false or misleading information about the Internet address of any treatment provider's website, or to surreptitiously direct or redirect a person to another website;
(4) suggest or imply that a relationship with another treatment provider exists, unless the other treatment provider has provided express, written consent to indicate that relationship;
(5) make a false or misleading statement about the substance use disorder treatment services the treatment provider provides; or
(6) make a false or misleading statement about the geographic location of the treatment provider or the geographic location in which the treatment provider provides substance use disorder treatment services.
Any treatment provider who violates the provisions of the bill will be liable to a civil penalty of not more than $1,000 for each violation. Any person who suffers any injury or damages as a result of the use or employment by a treatment provider of any method, act, or practice declared unlawful under the bill may bring an action or assert a counterclaim therefor in any court of competent jurisdiction. The court will, in addition to any appropriate legal or equitable relief, award threefold the damages sustained by any person in interest and award reasonable attorney's fees, filing fees, and reasonable costs of suit.
The Office of Licensing in the Department of Health may investigate alleged violations of this bill. Upon finding a violation, the division may suspend or revoke the treatment provider's license or certification, if applicable, or may impose a civil penalty against the treatment provider. If the department imposes a civil penalty, the civil penalty will be not more than $1,000 for each violation.
