Assembly committee releases A4535 to strengthen oversight of sober living residences

The Assembly Oversight, Reform and Federal Regulations Committee voted to release A4535 as amended on Friday after testimony from the bill sponsor and the New Jersey State Commission of Investigation, which said the measure enshrines recommendations from its February 2024 report on addiction‑recovery operations.

The measure: A4535, as amended, removes a prior requirement that cooperative sober living residences employ on‑site counseling staff and instead authorizes rule‑making to require at least one supervisor certified under Department of Community Affairs standards. The amendments require incident reporting (including overdoses), mandate at least two unannounced DCA inspections per year, direct DCA to publish a database of licensed sober residences, and appropriate $100,000 to DCA to implement the law. The committee noted the amendments make A4535 identical to Senate Bill 2952.

"People struggling with and attempting to overcome their addiction should not be subject to the abuse and lack of care that up to this point has unfortunately gone unchecked throughout parts of the recovery industry," the bill sponsor said while reading prepared remarks into the record.

Commission of Investigation findings: Tiffany Williams Brewer, chair of the New Jersey State Commission of Investigation (SCI), told the committee the commission used subpoena power and sworn testimony to document patterns of fraud, corruption and abuse in parts of the addiction‑treatment industry. SCI said it found unlicensed sober homes operating without required background checks and property inspections, instances of illicit drug use and on‑site provision of unauthorized medical services, and at least one unlicensed residence that operated illegally for three years and at one point housed 26 residents when the legal limit is 10.

"The business model for some treatment centers and rehabs was not focused on getting patients clean and sober, but they focus on the vast financial reward that's connected to keeping them trapped in a cycle of addiction and treatment," Brewer said, noting the commission recommended increased civil penalties (from $5,000 to $25,000) and further consideration of criminal penalties for unlicensed operators. SCI testified that A4535 memorializes its reporting, inspection and penalty recommendations.

Committee action: After sponsor and SCI testimony and expressions of support from committee members, a motion to release A4535 as amended passed. The committee recorded votes in favor from Assemblyman Ganimort, Assemblyman Hutchinson, Vice chairman Bridal and Chairman Atkins; the bill was released from committee as amended.

What to watch: The bill will proceed according to legislative rules; the committee said the changes aim to protect vulnerable residents and give municipalities and state regulators better tools to identify and remove unlicensed or dangerous operations. The DCA appropriation and the inspection and reporting requirements are likely to be key elements as the bill moves through the legislative process.