Existing law requires the State Department of Health Care Services to regulate and certify alcohol or other drug programs, as defined. Existing law also requires the department to regulate and license adult alcohol or other drug recovery or treatment facilities, and requires a licensee to provide specified nonmedical services. Existing law requires all programs certified and facilities licensed by the department to make specified disclosures to the department regarding, among other things, ownership or control of, or financial interest in, a recovery residence, as defined.
This bill, in addition to existing disclosure requirements, would require all programs certified and all facilities licensed, no later than July 15, 2026, and annually each July 15 thereafter, to submit to the department a report of all money transfers between the program or facility and a recovery residence during the previous fiscal year.
Existing law prohibits a licensed facility, a certified program, or other specified persons, programs, and entities from giving or receiving remuneration or anything of value for the referral of a person who is seeking alcohol or other drug recovery or treatment services. Existing law generally prohibits referrals for remuneration to any skilled nursing home or other specified types of care facilities without first obtaining a written license from the Director of Public Health or from an inspection service approved by the director, as specified.
This bill would require a person, association, or corporation, before establishing, conducting, or maintaining a referral agency or referring any person for remuneration to an alcoholism or drug abuse treatment program certified by or a facility licensed by the department to first obtain a license from the department, as specified. The bill would require the department to impose a fee for license application and renewal and would specify the information required to be included on the application. The bill, among other provisions, would prohibit a licensee from having a direct or indirect financial interest in a program or facility doing business with the licensee. The bill would not apply to a local public agency performing referral services without cost to recipients of adult alcoholism or drug abuse recovery or treatment services when otherwise authorized by law.
This bill would make it unlawful for a referral agency to participate in or operate a group advertising and referral service for addiction treatment services unless specified conditions are met. The bill would authorize the department or 5 or more individual or member programs to petition the superior court of any county for the issuance of an injunction restraining conduct that is a violation of that provision. The bill would make it a misdemeanor for any individual, association, partnership, corporation, or otherwise to operate a group advertising and referral service without providing its name and address to the department. By creating new crimes, the bill would impose a state-mandated local program.
This bill would authorize the department to suspend or revoke the license of a program or facility that fails to comply with the provisions of the bill, and to impose a civil penalty, as specified. The bill also would authorize the department to impose a civil penalty against a person, association, or corporation referring persons without a license in violation of the bill, in the amount of the remuneration illegally received, as specified.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.

Statutes affected:
SB 43: 740 PEN
12/05/24 - Introduced: 740 PEN
02/25/25 - Amended Senate: 11832.2 HSC, 11832.2 HSC, 11833.05 HSC, 11833.05 HSC, 11834.26 HSC, 11834.26 HSC, 740 PEN
03/06/25 - Amended Senate: 11832.2 HSC, 11833.05 HSC, 11834.26 HSC
04/01/25 - Amended Senate: 11833.05 HSC