August 12, 2025
Acting Governor
Tahesha Way signed two bills into law yesterday that will protect individuals who
are seeking addiction treatment from being misled, exploited, or referred for
profit.
These bills will strengthen accountability within the substance use treatment industry, helping to support patients in making informed choices and ensuring that all decisions are made with clinical need rather than financial gain in mind.
“It is important to protect individuals dealing with addiction," Acting Governor Way said in a press release. "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.”
The first bill revises the existing law on patient referrals to substance use disorder treatment facilities, recovery residences, and clinical laboratories, reclassifying patient brokering from a fourth-degree to a third-degree crime, with a mandatory $50,000 fine per violation, plus restitution to those affected.
The second bill prohibits the use of deceptive marketing practices by addiction treatment providers by regulating the marketing of addiction treatment services, requiring all advertising to be accurate, complete, and transparent about the services offered, their locations, and each provider's identity and affiliations. 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.
“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,” New Jersey Association of Mental Health and Addiction Agencies (NJAMHAA) President and CEO Debra L. Wentz, Ph.D., said.
“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,” Dr. Wentz added.
