New Jersey Strengthens Oversight of Addiction Treatment Facilities with Three New Bills

New Jersey lawmakers took decisive action last week to strengthen state oversight of addiction treatment facilities, unanimously approving three bills that respond to concerns identified in a 2024 state investigation. The Assembly oversight committee's Thursday vote marks a significant shift in how the state regulates drug and alcohol treatment centers, their owners, and the growing field of peer recovery specialists.

The legislative package emerged from findings detailed in the New Jersey State Commission of Investigation's 2024 report, which highlighted gaps in regulatory oversight that left vulnerable patients exposed to substandard care and, in some cases, exploitation. The bills now advance to the full Assembly for consideration.

What the Bills Address

The three measures target different aspects of the addiction treatment ecosystem:

Facility ownership and operations. One bill would impose stricter requirements on who can own and operate treatment facilities, including enhanced background checks and financial disclosure requirements. The measure aims to prevent individuals with histories of fraud or abuse from entering or remaining in the treatment industry.

Peer recovery specialist oversight. A second proposal establishes clearer standards for peer recovery specialists—individuals with lived experience of addiction who provide non-clinical support to people in treatment. While peer support has proven valuable in recovery settings, the bill seeks to formalize training requirements and establish accountability measures to protect both specialists and the clients they serve.

State enforcement authority. The third bill would expand the Department of Human Services' power to investigate complaints, conduct unannounced inspections, and take swift action against facilities found to be operating outside established standards of care.

Industry Pushback on Scope

While the bills received unanimous committee approval, testimony from treatment providers revealed concerns that some measures may overreach in their attempt to address legitimate problems.

Several witnesses argued that overly broad restrictions could inadvertently harm well-run programs and create barriers for qualified peer recovery specialists seeking to enter the field. Industry representatives emphasized that most facilities operate ethically and that regulatory changes should target bad actors without imposing unnecessary burdens on compliant providers.

"We support accountability and patient protection," one treatment center administrator told the committee. "But we need to make sure these rules don't create unintended consequences that limit access to care or discourage people with valuable lived experience from becoming peer specialists."

The 2024 Investigation's Findings

The State Commission of Investigation's report painted a troubling picture of certain segments of New Jersey's addiction treatment landscape. Investigators documented instances of:

• Facilities operating with minimal clinical staffing or inadequate medical oversight
• Owners with financial incentives that conflicted with patient welfare
• Peer recovery specialists working without adequate training or supervision
• Marketing practices that misrepresented treatment offerings or success rates
• Billing irregularities involving insurance fraud and overbilling

The report stopped short of characterizing these issues as industry-wide, but it made clear that existing regulatory frameworks were insufficient to prevent or quickly address problematic operations.

The Role of Peer Recovery Specialists

Peer recovery specialists occupy a unique position in the addiction treatment continuum. Their personal experience with substance use and recovery can create powerful connections with clients who may be skeptical of traditional clinical approaches.

Research has consistently shown that peer support improves treatment engagement, reduces feelings of isolation, and helps people navigate the practical challenges of early recovery. Many successful treatment programs integrate peer specialists alongside licensed clinicians to provide holistic, person-centered care.

However, the field's rapid growth has outpaced the development of consistent standards. New Jersey currently has no statewide certification requirement for peer recovery specialists, though some programs use voluntary credentials offered by professional organizations. The pending legislation would likely change that, establishing minimum training hours, supervision requirements, and ethical guidelines.

What Happens Next

The bills now move to the full Assembly for debate and a vote. If passed, they would proceed to the Senate before reaching the governor's desk.

Lawmakers have indicated they remain open to amendments that address industry concerns while preserving the bills' core patient protection goals. Stakeholders expect continued dialogue between legislators, treatment providers, peer support organizations, and patient advocacy groups as the measures advance through the legislative process.

The Department of Human Services would be responsible for developing specific regulations to implement the new laws if they're enacted. That rulemaking process would include additional opportunities for public input and technical refinement.

Broader Context: Addiction Treatment Oversight Nationwide

New Jersey's legislative effort reflects a growing national conversation about addiction treatment quality and accountability. Multiple states have enacted or are considering similar measures following investigations that revealed exploitation of people seeking help for substance use disorders.

The federal government has also taken steps to improve oversight. The Substance Abuse and Mental Health Services Administration (SAMHSA) continues to develop national standards for addiction treatment, though enforcement remains primarily a state responsibility.

Industry groups including the National Association of Addiction Treatment Providers have advocated for evidence-based regulation that protects patients while preserving access to diverse treatment approaches. Finding that balance—meaningful oversight without counterproductive bureaucracy—remains a central challenge for policymakers.

Why Regulation Matters

For individuals and families navigating addiction treatment decisions, the regulatory environment directly impacts safety and outcomes. Clear standards help ensure that facilities meet baseline requirements for clinical care, staff qualifications, and ethical operation.

Effective regulation also supports the legitimate treatment industry by creating a level playing field and helping differentiate quality programs from those operating outside accepted norms. When oversight is weak or inconsistent, unscrupulous operators can undercut ethical providers while delivering substandard care.

The New Jersey bills represent one state's attempt to recalibrate its regulatory approach based on real-world evidence of where the current system has fallen short. Whether the legislation strikes the right balance will become clearer as implementation unfolds and the impact on both patient safety and treatment access becomes measurable.

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If you or a loved one is seeking addiction treatment in New Jersey, the SAMHSA National Helpline provides free, confidential referrals 24/7 at 1-800-662-4357.