The committee advanced legislation (A1888/S1962) that would create new consumer protections for residents of long‑term care facilities, including a ban on owners, administrators, officers or employees of a facility from serving as a resident’s power of attorney when the person stands to benefit financially. “This bill specifically would ban an owner, administrator, officer, or employee of a long term care facility or any entity affiliated with long term care facility that stands to benefit financially to act as power of attorney to a resident,” said a representative of the New Jersey Association for Justice.

Supporters — including the New Jersey Association of Elder Law Attorneys and the New Jersey Office of the Public Defender — urged the committee to approve standardized admission agreements, independent legal counsel notices, and training and certification for non‑attorney Medicaid application assisters. Ryan Sinclair of the New Jersey chapter of the National Academy of Elder Law Attorneys said standardized contracts and a requirement that residents be notified of the right to independent counsel would “prevent these kind of abuses from happening.”

Opponents — speaking for the Health Care Association of New Jersey, the New Jersey Hospital Association and some for‑profit providers — said a single standard admission agreement could be impractical and that the bill’s ban on facility staff managing a resident’s affairs risked interfering with legitimate assistance. John Endyke of the Health Care Association of New Jersey said the measure’s language was broad and could “mean you can’t assist with arranging doctor's visits for them” unless narrowed.

Witnesses and committee members debated whether long‑term acute care hospitals (LTACs) should be excluded; Atlantic stakeholders and hospital counsel urged that LTACs be treated as acute hospitals rather than long‑term residential facilities. Neil Eicher of the New Jersey Hospital Association requested technical amendments to remove LTACs from the bill’s definition of “long‑term care facility.” The committee adopted amendments excluding LTACs from certain provisions and making technical style changes.

Committee members discussed safeguards for residents without family, noting the bill allows for court‑appointed guardianship when appropriate. Sponsor Assemblyman Varelli said the bill is intended as a preventative measure to protect vulnerable residents and that courts remain available to appoint guardians in appropriate cases.

After extensive testimony, the committee released the bill as amended. Members asked sponsors and industry representatives to continue negotiations on contract language, the scope of prohibited assistance and training and oversight of Medicaid application assisters.