Senate Commerce Committee Statement to Senate, No. 684 (State of New Jersey, February 5, 2024)

Summary

Senate Commerce Committee Statement to Senate, No. 684, State of New Jersey, dated February 5, 2024. The committee reports Senate Bill No. 684 favorably. 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. If a physician's order requires immediate relocation to a long-term care facility, the notice requirement would be waived. A delivery of written notice and a letter signed by the physician, no later than 45 days prior to the scheduled date of termination, would be deemed sufficient proof of relocation. The bill does not relieve a service recipient of an obligation to return equipment.

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     SENATE COMMERCE COMMITTEE

                    STATEMENT TO

                   SENATE, No. 684

 STATE OF NEW JERSEY
                   DATED: FEBRUARY 5, 2024

    The Senate Commerce Committee reports favorably Senate Bill
No. 684.
    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 could be terminated within 48 hours. The 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. 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.
    This bill was pre-filed for introduction in the 2024-2025 session
pending technical review. As reported, the bill includes the changes
required by technical review, which has been performed.


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