Committee advances bill tightening fiduciary and admissions rules for long-term care residents

The Assembly committee on Aging, Health and Human Services on May 7 voted to release A1888, legislation aimed at strengthening protections for residents of long-term care facilities by restricting certain facility-affiliated individuals from serving as a resident’s attorney-in-fact and by adding contract and notice requirements.

The committee’s amendments explicitly state that the bill’s prohibition on certain facility-connected individuals acting as a principal’s attorney-in-fact does not bar a family member from serving in that role, and they add a definition of “family member” (spouse, domestic partner, partner in a civil union, child, parent, sibling, aunt, uncle, niece, nephew, grandparent or grandchild). The amendments also revised the long-term care facility definition to include long-term acute care hospitals and all beds in skilled nursing facilities licensed by the Department of Health.

Why it matters: Supporters said the bill fills a gap that leaves medically vulnerable residents open to financial exploitation and conflicts of interest when facility staff or owners gain legal authority over residents’ affairs. National and state elder-law and justice organizations described cases of coerced powers of attorney and urged the legislature to act.

What supporters said: Dan Jercovic (National Academy of Elder Law Attorneys, New Jersey chapter) testified the bill is a “common-sense” consumer protection that will help stop exploitation of residents at the end of life and urged a standardized approach to admission agreements and clear notice of the right to counsel. John Lemiro (New Jersey Association for Justice) described reported cases of coercion and said inclusion of long-term acute care hospitals was appropriate because the bill draws a line where those who profit from care should not serve as a resident’s fiduciary.

What opponents said: John Endyke of the Health Care Association of New Jersey said his members support the bill’s protections against facility owners or administrators serving as a resident’s power of attorney but raised concerns about language that would require standardized admission agreements and a posted notice that a resident has a right to counsel. Endyke said assisted-living settings and facility-by-facility variations make a one-size contract impractical and warned that some notice requirements risk becoming advertising for attorneys.

Votes and next steps: The committee adopted amendments and voted to release A1888 as amended. The Senate companion, S1962 (first reprint), was also released; the committee recorded roll-call votes during both motions and amendments. Sponsors said they will work with stakeholders on technical language and potential further changes before floor action.

The committee’s action sends the amended bill to the next legislative step; sponsors and stakeholders said they will continue negotiations on standardized-contract language and the scope of covered facility types.