Existing law requires the State Department of Health Care Services to license and regulate alcoholism or drug abuse recovery or treatment facilities serving adults. Existing law prohibits a licensee from operating an alcoholism or drug abuse recovery or treatment facility beyond the conditions and limitations specified on the license. Existing law also defines a "recovery residence" as a residential dwelling that provides primary housing for individuals who seek a cooperative living arrangement that supports personal recovery from a substance use disorder and that does not require licensure pursuant to those provisions or does not provide licensable services.
This bill would require a licensee operating an alcoholism or drug abuse recovery or treatment facility and serving more than 6 residents to maintain specified insurance coverages, including, among others, commercial general liability insurance and employer's liability insurance. The bill would require a licensee that serves 6 or fewer residents to maintain general liability insurance coverage.
The bill would require any government entity that contracts with a privately owned recovery residence to provide recovery services, or with an alcoholism or drug abuse recovery or treatment facility to provide treatment services for more than 6 residents, to require the contractor to maintain those specified insurance coverages. If an alcoholism or drug abuse recovery or treatment facility provides services for 6 or fewer residents, the bill would require the government entity to require the contractor to maintain general liability insurance coverages, as specified. The bill would make these provisions applicable to contracts entered into, renewed, or amended on or after January 1, 2022.
Existing law creates the Department of Insurance, headed by the Insurance Commissioner, and prescribes the department's powers and duties, including various duties to regulate the business of insurance in this state.
Existing law prohibits a policy of residential property insurance from being issued or delivered unless the named insured is offered coverage for loss or damage caused by an earthquake, and specifies the minimum coverage that is required to be offered. Existing law defines a "policy of residential property insurance" for the purposes of these provisions to include a policy insuring, among other property, residential structures and their contents.
This bill would specify that a "policy of residential property insurance" does not include a policy that provides, or is construed to provide, any coverage or indemnity for the payment of any fine, penalty, or restitution in any criminal, civil, or administrative action or proceeding, or any coverage or indemnity for the payment of any loss or liability, arising from the operation of either a recovery residence or an alcoholism or drug abuse recovery or treatment facility. The bill would make this provision applicable to policies issued, renewed, or amended on or after January 1, 2022.

Statutes affected:
AB1158: 11834.10 HSC, 10087 INS
02/18/21 - Introduced: 11834.10 HSC, 10087 INS
04/22/21 - Amended Assembly: 11834.10 HSC, 10087 INS
05/24/21 - Amended Assembly: 11834.10 HSC, 10087 INS
07/05/21 - Amended Senate: 11834.10 HSC, 10087 INS
07/12/21 - Amended Senate: 11834.10 HSC, 10087 INS
08/26/21 - Amended Senate: 11834.10 HSC, 10087 INS
09/03/21 - Amended Senate: 11834.10 HSC, 10087 INS
09/15/21 - Enrolled: 11834.10 HSC, 10087 INS
10/01/21 - Chaptered: 11834.10 HSC, 10087 INS
AB 1158: 11834.10 HSC, 10087 INS