Office of Legislative Services State House Annex P.O. Box 068 Trenton, New Jersey 08625 Legislative Budget and Finance Office Phone (609) 847-3105 Fax (609) 777-2442 www.njleg.state.nj.us LEGISLATIVE FISCAL ESTIMATE ASSEMBLY COMMITTEE SUBSTITUTE FOR ASSEMBLY, Nos. 2998 and 567 STATE OF NEW JERSEY 221st LEGISLATURE DATED: MARCH 28, 2025 SUMMARY Synopsis: Permits court to order counseling for children in households with domestic violence in appropriate cases; establishes presumption of award of custody to domestic violence victim in appropriate cases. Type of Impact: Annual increase in State expenditures and revenue. Agencies Affected: Department of Law and Public Safety; Department of Human Services; Department of Children and Families. Office of Legislative Services Estimate Annual Fiscal Impact State Expenditure Increase Indeterminate State Revenue Increase Indeterminate The Office of Legislative Services (OLS) finds that this bill will lead to an indeterminate increase in annual State expenditures for the Victims of Crime Compensation Office (VCCO) if the defendant cannot pay the costs of counseling as ordered by the court. As a payer of last resort, the VCCO would incur these costs in situations where the minor child is uninsured or underinsured for behavioral health services or the defendant, as ordered by the court, cannot make payment otherwise. In events where a minor child, who is covered under Medicaid or the Children’s Health Insurance Program, is ordered to undergo this counseling, the NJ FamilyCare program would incur the costs of the minor’s counseling rather than the VCCO if the parent could not pay as ordered by the court. This would increase State expenditures on associated NJ FamilyCare services within the Department of Human Services and the Department of Children and Families, which would be partially offset by an indeterminate amount of revenue from federal reimbursements. The VCCO will also have an increased administrative workload under the bill to respond to and process additional claims due to an increased number of individuals receiving counseling services. Depending on its resource allocation policies, however, the added workload may or may not augment its administrative expenditures. FE to ACS for A2998 2 BILL DESCRIPTION This bill permits the court to order counseling for a child in a proceeding involving domestic violence. The bill also permits the court to order legal and physical custody of a minor child to the plaintiff in certain circumstances involving domestic violence. The bill permits a court to order counseling in appropriate cases, including when a child witnesses or experiences domestic violence while residing in the household with the abuser and the victim. Current law only provides that once a domestic violence complaint is filed, the victim and the abuser should be advised of any programs or services available for advice and counseling. Additionally, the bill permits the court to order the abusive party to pay for the domestic violence counseling provided to the child. A defendant ordered to pay for domestic violence counseling is required to show proof of payment of the services to the court. The bill permits the court to order a defendant to provide reimbursement for costs incurred in providing counseling for a child. The court may enter this order upon evaluating and determining the defendant’s ability to pay for such services. The defendant may be required to pay the victim directly, reimburse the VCCO for compensation paid to the victim, or reimburse any party that may have compensated the victim. FISCAL ANALYSIS EXECUTIVE BRANCH None received. OFFICE OF LEGISLATIVE SERVICES The OLS finds that this bill will lead to an indeterminate State expenditure increase for the Victims of Crime Compensation Office if the defendant cannot pay the costs of counseling as ordered by the court. According to the 2020 New Jersey Domestic Violence Report, the most recent report available, there were 63,058 domestic violence offenses reported by the police, including 14,930 incidents (24 percent) where children were actively involved or present. The OLS is unable to predict how many of these children, assuming the figures are still relevant, will be ordered by the court to undergo counseling in a given year, as counseling of minor children is only one of many types of relief the court may order. Additionally, the OLS cannot estimate the number of defendants the court will determine that can pay, or reimburse the State, for counseling services. The OLS concludes that all children, however, that were witnesses of domestic violence would be permitted to gain access to counseling services, not just those whose parents could reimburse for the services. With that in mind, the OLS also cannot determine the number of such counseling sessions that will be ordered, the type of counselor that would be utilized, or the percentage of such children likely to have behavioral health coverage through NJ FamilyCare or other insurance to arrive at a cost estimate. As shown in the table below, the maximum reimbursement provided by the office for counseling services depends upon the type of service provider delivering the counseling. Currently, counseling services for victims is a benefit that may be compensated by the VCCO. The VCCO’s Victim Counseling Service provides referral services for counseling and therapy to victims of violent crime. The office’s website provides that the “psychological needs of immediate family members of crime victims may also be met.” The VCCO will currently pay out-of-pocket FE to ACS for A2998 3 unreimbursed counseling and therapy expenses for each of the listed categories of providers not to exceed the following statutory amounts: Medical And Counseling Service Provider Maximum Reimbursable Amount by the Victims of Crime Compensation Office Psychiatrist $150 per hourly session Unlicensed mental health practitioner (Psy.D., Ph.D., Ed.D.) $110 per hourly session State-licensed psychologist $110 per hourly session A.C.S.W. $90 per hourly session Licensed marriage and family therapist $90 per hourly session M.S.W. $80 per hourly session M.A. (jurisdictions other than New Jersey or in New Jersey practicing in compliance with N.J.S.A.45:14B-6) $80 per hourly session Group counseling sessions $50 per eligible claimant per session As mentioned, the VCCO is a payer of last resort. As a payer of last resort, the VCCO would incur these costs in situations where the minor child is uninsured or underinsured for behavioral health services. In events where a minor child covered under Medicaid or the Children’s Health Insurance Program is ordered to undergo counseling per the provisions of the bill, the NJ FamilyCare program would incur the costs of the minor’s counseling either directly (with the State reimbursing providers on a fee-for-service basis) or indirectly (with the additional counseling costs factored into NJ FamilyCare’s managed care capitation rates). The resulting increase in State expenditures on associated NJ FamilyCare behavioral health services within the Department of Human Services and the Department of Children and Families would be partially offset by an indeterminate amount of revenue from federal Medicaid and Children’s Health Insurance Program reimbursements. The VCCO will also have an increased administrative workload under the bill to respond to and process additional claims due to an increased number of individuals receiving counseling services. Depending on its resource allocation policies, however, the added workload may or may not augment its administrative expenditures. Section: Law and Public Safety Analyst: Kristin Brunner Santos Lead Fiscal Analyst Approved: Thomas Koenig Legislative Budget and Finance Officer This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note. This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).