SENATE BUDGET AND APPROPRIATIONS COMMITTEE STATEMENT TO [First Reprint] SENATE, No. 3562 STATE OF NEW JERSEY DATED: FEBRUARY 3, 2025 The Senate Budget and Appropriations Committee reports favorably Senate Bill No. 3562 (1R). This bill provides for the designation and establishment of a Public Health Institute in New Jersey. The bill requires the Commissioner of Health (commissioner) to designate one entity to serve as the Public Health Institute pursuant to criteria established by the commissioner. The purpose and objective of the Public Health Institute will be to: (1) coordinate among national, State, and local agencies, including, but not limited to, local and county health departments, Regional Health Hubs, licensed health care facilities, public health- related advocacy and membership organizations, and private organizations, for the purposes of promoting equitable public health services in New Jersey; (2) provide timely and nimble administrative, operational, and fiscal support to public and private health agencies, community-based organizations, and other strategic partners; (3) develop and implement projects, programs, initiatives, or services designed to improve public health outcomes, address racial disparities in public health, including the underlying systemic root causes of health disparities and inequities, and bridge gaps between public and private sector health care and community services; (4) promote, support, and fund programs related to workforce development, education, applied research, policy development, and other initiatives that advance the purposes of the Public Health Institute; (5) enter into contracts for the purchase of medical countermeasures, supplies, or therapeutics, or other products or service agreements as may be necessary to aid the Department of Health (department) in advancing or protecting the public health; and (6) engage in charitable programs dedicated to the purposes and objectives of the Public Health Institute. Under the bill, the commissioner will establish criteria that an entity is required to satisfy in order to be designated as a Public Health Institute, which criteria would include, at a minimum, the following: (1) be a nonprofit organization located in New Jersey; 2 (2) be recognized by the National Network of Public Health Institutes or any successor accreditation body for public health institutes; (3) possess the capacity to integrate and coordinate public health functions on a local, county, and Statewide level; (4) maintain a network of personnel with expertise in the areas of health care data collection and analysis, health care policy, health care information systems, and public health research; and (5) any other criteria established by the commissioner. An entity designated as the Public Health Institute pursuant to the bill will enter into an agreement with the department requiring the entity to: (1) comply with all applicable laws and regulations necessary to qualify for and maintain its nonprofit status; (2) regularly consult with and give due consideration to the input and recommendations of the department and local health departments in carrying out its duties; (3) develop and submit to the department an operational plan; (4) submit to the department an initial startup plan of certain issues, projects and action items the Public Health Institute will pursue in the first three years of its designation; (5) submit periodic planning documents and progress reports to the department at such intervals as may be determined by the commissioner; (6) provide information, assistance, and services as may be required by the department in order to design, plan, implement or coordinate any projects, programs, initiatives, or services that advance the mutual purposes of the department and the Public Health Institute; (7) report any data collected or maintained by the Public Health Institute to the department; and (8) comply with any other requirements as may be determined by the commissioner. The commissioner may, as a condition of a nonprofit entity maintaining its designation as the Public Health Institute, require such nonprofit entity to perform such additional tasks or satisfy additional requirements on a continuing basis. The commissioner may rescind the commissioner’s designation of the Public Health Institute in accordance with the terms of agreement entered into pursuant to the bill. The bill establishes in the department a special, non-lapsing fund to be known as the Public Health Institute Fund. Monies deposited in the fund will be dedicated for the support and funding of the establishment and maintenance of the Public Health Institute and any projects, programs, initiatives, or services of the Public Health Institute. 3 FISCAL IMPACT: The Office of Legislative Services (OLS) concludes that the net fiscal impact of the bill cannot be determined. State and local health departments may experience indeterminate workload increases relating to the operations of a Public Health Institute in the State. State and local governments may also experience indeterminate savings to the extent the Public Health Institute receives private funding and utilizes those funds for public health programs or services that would otherwise have been provided by the Department of Health or county or local health departments.