AB 423 California Assembly · 2025-2026 Regular Session

Alcoholism or drug abuse recovery or treatment programs and facilities: disclosures.

Summary

Existing law grants the sole authority in state government to the State Department of Health Care Services to certify alcohol or other drug programs and to license adult alcoholism or drug abuse recovery or treatment facilities. Existing law requires certified programs and licensed facilities to disclose to the department if any of its agents, partners, directors, officers, or owners own or have a financial interest in a recovery residence and whether it has contractual relationships with entities that provide recovery services to clients of certified programs or licensed facilities if the entity is not a part of a certified program or a licensed facility. Existing law defines "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 by the department or does not provide licensable services. This bill would require a business-operated recovery residence to register its location with the department. The bill would define a business-operated recovery residence as a recovery residence in which a business, in exchange for compensation, provides more than one service beyond those of a typical tenancy arrangement to more than one occupant, including, but not limited to, drug testing, supervision, scheduling, rule setting, rule enforcement, room assignment, entertainment, gym memberships, transportation, laundry, or meal preparation and coordination.

Issues: ✓ Healthcare

Bill status failed 1 of 4 stages cleared

Introduction

Feb 2025

Committee Review

Floor Vote

Governor

Introduced Feb 5, 2025 Last action Feb 2, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

02/05/25 - Introduced → 04/02/25 - Amended Assembly · 9 edits · Apr 2, 2025

MAJOR

AB 423 was substantially expanded to add a new section (11833.05 Health and Safety Code) requiring certified programs and licensed facilities to disclose financial interests in and contractual relationships with recovery residences, and requiring business-operated recovery residences to register their location with the state department. The original provisions on discharge and continuing care planning for treatment facilities remain largely unchanged but are now secondary to the new disclosure and registration framework.

SCOPE

The bill now amends Section 11833.05 in addition to Section 11834.26, expanding its scope from discharge planning rules to also cover disclosures and registration related to recovery residences (sober living homes).

REQUIREMENT

Certified programs and licensed facilities must disclose to the department if any agent, partner, director, officer, or owner has ownership, control, or financial interest in a recovery residence, or has a contractual relationship with an entity providing services to their clients that is not part of a certified program or licensed facility.

Disclosures must be made at initial licensure or certification, at renewal, and whenever a new qualifying relationship is formed.

A business-operated recovery residence must register its location with the department.

ENFORCEMENT

The department may suspend or revoke a program's certification or facility's license for failing to make required disclosures about recovery residence connections.

The department must take action under Section 11834.31 against an unlicensed facility disclosed as a recovery residence, though it is not required to investigate a recovery residence not alleged to be operating in violation of Section 11834.30.

The department may refer substantiated complaints against a recovery residence to other enforcement entities including the Department of Insurance, Department of Managed Health Care, the state Attorney General, and the U.S. Attorney General.

DEFINITION

New definition of 'business-operated recovery residence': a recovery residence where a business provides more than one service beyond typical tenancy (such as drug testing, supervision, scheduling, rule setting, room assignment, transportation, laundry, or meal preparation) to more than one occupant in exchange for compensation.

New definition of 'recovery residence': a residential dwelling providing primary housing for individuals seeking cooperative living arrangements supporting recovery from substance use disorder that does not require department licensure or provide licensable services, including sober living homes and unlicensed alcohol and drug free residences.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Feb 2, 2026

Lower · Passed

From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.

lower

Apr 3, 2025

Committee

Re-referred to Com. on HEALTH.

lower

Apr 2, 2025

Introduced

From committee chair, with author's amendments: Amend, and re-refer to Com. on HEALTH. Read second time and amended.

lower

Feb 18, 2025

Committee

Referred to Com. on HEALTH.

lower

Feb 6, 2025

Lower · Passed

From printer. May be heard in committee March 8.

lower

1 primary · 0 co-sponsors