Alcohol and drug programs.

Senator Umberg's legislation establishes new oversight requirements for California's alcohol and drug treatment facilities while creating specific timelines for investigating unlicensed operations. The bill requires the Department of Public Health to initiate investigations of alleged unlicensed facilities within 10 days of receiving complaints and complete them within 60 days, unless additional agency assistance or resources are needed.

Licensed treatment facilities and certified programs must disclose any ownership interests or financial relationships with recovery residences - residential dwellings that provide cooperative living arrangements supporting substance use disorder recovery without requiring licensure. Starting in July 2026, these entities must submit annual reports detailing all financial transfers with recovery residences during the previous fiscal year. The department must conduct site visits of licensed facilities that disclose connections to recovery residences found operating unlawfully.

The legislation allows county behavioral health agencies that participate in the Drug Medi-Cal organized delivery system to request authorization to investigate recovery residences suspected of providing treatment services without proper licensing. Facilities found operating without required licenses face civil penalties of $2,000 per day and are prohibited from applying for licensure for five years. The department may refer substantiated complaints about recovery residences to other enforcement entities, including the Department of Insurance and Attorney General's office.