Senate Commerce Committee Statement — Senate Bill No. 3413 with Committee Amendments (January 26, 2023)

Summary

Senate Commerce Committee Statement to Senate, No. 3413, with committee amendments, State of New Jersey, dated January 26, 2023. As amended, the bill requires a service provider doing business in this State to allow a service recipient to terminate the service contract without incurring an early termination fee. Unless waived by the service provider, the recipient must give no less than 45 days' notice, but if a physician's order requires immediate relocation to a long-term care facility, the contract may be terminated within 48 hours. The committee amendments add a standard termination form and, for a representative, a copy of the power of attorney, conservatorship, or guardianship documents.

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     SENATE COMMERCE COMMITTEE

                     STATEMENT TO

                   SENATE, No. 3413
                    with committee amendments



 STATE OF NEW JERSEY
                    DATED: JANUARY 26, 2023

    The Senate Commerce Committee reports favorably Senate Bill
No. 3413 with committee amendments.
    As amended, the bill requires a service provider doing business in
this State to allow a service recipient to terminate the service contract,
as provided in the bill, without incurring an early termination fee.
Unless otherwise waived by the service provider, the bill requires a
service recipient to provide the service provider with no less than 45
days’ notice prior to the contract termination or cancellation.
However, if a physician’s order requires immediate relocation to a
long-term care facility, this notice requirement would be waived, and
the contract may be terminated within 48 hours. The service provider
is to provide a standard termination to the service recipient upon
request, which the service recipient and a physician are to utilize when
requesting contract termination or cancellation from the service
provider. If a service recipient is unable to submit the standard
termination form and a representative of the recipient is requesting
contract termination or cancellation, the representative is to submit to
the service provider the standard termination form and a copy of the
power of attorney, conservatorship, or guardianship documents
verifying the representative’s authority.
    The bill also allows a service provider to require written proof of a
service recipient’s relocation to a long-term facility. In this event, the
bill provides that the delivery of a written notice to the service
provider of the contract termination and a letter signed by the service
recipient’s physician, no later than 45 days prior to the scheduled date
of termination, would be deemed to constitute sufficient proof.
    The bill further provides that nothing in the bill is to relieve a
service recipient of an obligation to return equipment to the service
provider or to be charged a lawful unreturned equipment charge, nor is
a service recipient relieved from any amounts owed for any equipment
purchased by the service recipient.
    As amended and reported, this bill is identical to Assembly Bill
No. 1884 (1R).
                                 2

COMMITTEE AMENDMENTS:
    The committee amended the bill to provide that:
    (1) a service provider is to provide a standard termination form to
the service recipient upon request, which the service recipient and a
physician are to utilize when requesting contract termination or
cancellation from the service provider; and
    (2) when the service recipient is unable to submit the standard
termination form and a representative of the service recipient is
requesting contract termination or cancellation pursuant to the
provisions of the bill, the representative is to submit to the service
provider the standard termination form and a copy of the power of
attorney, conservatorship, or guardianship documents verifying the
representative’s authority to act on behalf of the service recipient.


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