BILL ANALYSIS                                                                                                                                                                                                    �



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          Date of Hearing:  April 10, 2012

                            ASSEMBLY COMMITTEE ON HEALTH
                              William W. Monning, Chair
                    AB 1983 (Mansoor) - As Amended:  April 9, 2012
           
          SUBJECT  :  Substance abuse: recovery and treatment facilities.

           SUMMARY  :  Defines integral alcohol and drug abuse treatment 
          facilities (integral facilities) for purposes of licensure by 
          the Department of Alcohol and Drug Programs (DADP) and excludes 
          integral facilities from being considered a residential use of 
          property.  Specifically,  this bill  :  

          1)Defines integral facilities as any combination of two or more 
            facilities, located on the same or different parcels, that 
            collectively serve seven or more persons, not including the 
            licensee or members of the licensee's family or persons 
            employed as facility staff, that are under the control or 
            management of the same owner, operator, management company or 
            licensee or any affiliate of any of them, and which together 
            comprise one operation.

          2)Requires integral facilities to include, but not be limited 
            to, the provision of housing in one facility and recovery 
            programming, treatment, meals, or any other service or 
            services at another facility, or facilities; or by assigning 
            staff, or a consultant or consultants, to provide services to 
            or in more than one facility.

          3)Deletes existing law permitting DADP to issue a single license 
            to an alcoholism or drug abuse recovery or treatment facility 
            (treatment facility) wherein separate buildings or portions of 
            a residential treatment facility are integral components of a 
            single treatment facility and all of the components of the 
            treatment facility are managed by the same licensee, if the 
            applicant meets specified requirements; and instead, requires 
            DADP to issue a single license to integral facilities as 
            defined in this bill.

          4)Excludes integral facilities as defined in this bill from 
            existing law requiring treatment facilities serving six or 
            fewer persons to be deemed a residential use of property.

          EXISTING LAW  :  








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          1)Vests DADP with the sole authority in state government to 
            license treatment facilities that provide a broad range of 
            services in a supportive environment for adults who are 
            addicted to alcohol or drugs.

          2)Defines a treatment facility as any premise, place, or 
            building that provides 24-hour residential non-medical 
            services to adults who are recovering from problems related to 
            alcohol, drug, or alcohol and drug misuse or abuse, and who 
            need alcohol, drug, or alcohol and drug recovery treatment or 
            detoxification services.

          3)Requires a treatment facility with six or fewer persons to be 
            considered a residential use of property and not subject to 
            conditional use permits, zoning ordinances, or other 
            clearances.

          4)Prohibits for the purpose of all local ordinances, a treatment 
            facility serving six or fewer residents from being included 
            within the definition of a boarding home, rooming house, 
            institution or home for the care of minors, the aged, or 
            mentally infirm, foster care home, guest home, rest home, 
            sanitarium, mental hygiene home, or other similar term which 
            implies that the treatment facility is a business run for 
            profit or differs in any other way from a single family 
            residence.

          5)Permits a city, county, or other local public entity to place 
            restrictions on building heights, setback, lot dimensions, or 
            placement of signs of a treatment facility serving six or 
            fewer persons as long as the restrictions are identical to 
            those applied to other single family residences.

          6)Makes a legislative declaration that it is the policy of this 
            state that each county and city shall permit and encourage the 
            development of sufficient numbers and types of treatment 
            facilities as are commensurate with local need.

          7)Prohibits, under the California Fair Employment and Housing 
            Act (FEHA), discrimination against any person in any housing 
            accommodation on the basis of race, color, religion, sex, 
            marital status, national origin, ancestry, familial status, or 
            disability.  Specifies that discriminatory land use 
            regulations, zoning laws, and restrictive covenants are 








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            unlawful acts.

          FISCAL EFFECT  :  This bill has not yet been analyzed by a fiscal 
          committee.

           COMMENTS  :

           1)PURPOSE OF THIS BILL  .  According to the author, this bill 
            seeks to curb the use of single family residential properties 
            that the author states are falsely operating as integral 
            facilities to avoid state oversight.  The author maintains 
            that these integral facilities consist of several sober living 
            homes that each house six or fewer clients and are operated by 
            one large treatment provider.  The author asserts that 
            unregulated facilities serving six or fewer individuals that 
            operate as one larger "integral" facility are advertising a 
            broader scope of services without the state oversight that 
            ensures the safety of residents.  The author argues that 
            subjecting these facilities to state licensure will enable the 
            state to monitor the complex nature of the services provided 
            at these facilities and ensure that residents are receiving 
            the proper level of care. 

           2)BACKGROUND  .  This bill is the result of concerns raised by the 
            recent order issued by DADP to suspend the license of 
            Morningside Recovery, LLC (Morningside), a large treatment 
            operator with three licensed facilities in the city of Costa 
            Mesa, located in the author's district.  According to the 
            order, in addition to the three licensed facilities, 
            Morningside purported to operate eight sober living 
            environments, which are not subject to state licensure.  The 
            order states that Morningside was operating its licensed 
            facilities beyond the scope of its licenses by using its eight 
            unlicensed facilities in conjunction with its licensed 
            facilities.  The order also indicates that Morningside 
            operated all of its licensed and unlicensed facilities under 
            the same policies and procedures and client documentation did 
            not differentiate between the types of services or where they 
            were provided.  DADP staff note in the order that Morningside 
            maintained a single roster for the care and supervision of 
            clients residing in all of its facilities but the roster did 
            not identify whether clients were served in the licensed or 
            unlicensed facilities.  










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          Additionally, the order notes that, on at least one occasion, 
            Morningside admitted a client for treatment at a licensed 
            facility and then immediately housed the client at an 
            unlicensed facility where the client received treatment, and, 
            on at least two separate occasions, clients underwent 
            detoxification treatment and received their medication at one 
            of Morningside's eight unlicensed facilities.  As a result, 
            DADP ordered Morningside to immediately cease admitting 
            clients to its three Costa Mesa treatment centers and to 
            relocate clients currently residing at the three centers to 
            other treatment facilities to complete their currently 
            scheduled program within 14 days of the order, dated November 
            2011.  DADP has since initiated legal action to revoke 
            Morningside's licenses and a hearing on the matter is 
            scheduled for May 21, 2012. 

           3)SOBER LIVING HOMES  .  Sober living environments are cooperative 
            living arrangements for recovering alcohol and drug abusers.  
            Sober living homes operate on the concept that by surrounding 
            oneself with individuals who are experiencing the same 
            self-help learning process, recovering from one's addiction is 
            much easier.  Residents may participate in Twelve-Step 
            meetings or other educational meetings to help maintain their 
            sobriety and pursue other activities, including employment.  
            DADP notes that sober living environments serve as an interim 
            environment between licensed treatment facilities and a 
            client's home.  Sober living homes are exempt from licensure 
            and have no authority to offer treatment or services.  
            However, DADP indicates there have been numerous complaints 
            relating to unlicensed facilities, including sober living 
            homes.  DADP specifies that, on average, it receives 70 
            complaints per year relative to unlicensed facilities, 
            including sober living homes.  Many of the complaints allege 
            that unlicensed facilities, including sober living homes, are 
            offering addiction treatment services.

           4)DRUG AND ALCOHOL TREATMENT FACILITIES  .  According to DADP, 
            treatment facilities provide non-medical services to 
            individuals who are working to overcome their addiction to 
            alcohol or other drugs.  Services include education, group, or 
            individual sessions; recovery or treatment planning; and, 
            detoxification services.  In addition, a licensed treatment 
            facility may offer individualized services, such as vocational 
            and employment search training, community volunteer 
            opportunities, new skills training, peer support, social and 








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            recreational activities, and information about and referral to 
            appropriate community services.  

          DADP indicates that, to obtain licensure as a treatment 
            facility, prospective applicants must first identify a 
            location where they plan to provide non-medical alcoholism or 
            drug abuse recovery, treatment, or detoxification services.  
            Applicants must also complete an initial application, submit 
            an approved fire clearance from the local fire authority, and 
            pay an applicable license fee.  According to DADP, the 
            licensing process primarily focuses on health and safety 
            concerns, such as appropriate fire clearances, food service 
            standards, personnel requirements, physical environment 
            requirements, and residents' personal rights.  Finally, 
            applicants are required to pass a treatment facility on-site 
            inspection conducted by DADP to determine compliance with all 
            applicable laws and regulations.  An applicant that passes the 
            inspection is issued a license valid for two years.  DADP then 
            conducts an onsite program visit for compliance with the 
            requirements of the license at least once during the two year 
            period.  Licensed facilities are mandated to display their 
            license, which indicates the treatment capacity and the 
            population they are allowed to serve, in a public location.  

           5)DADP'S GOOD NEIGHBOR GUIDELINES  .  Currently, DADP includes in 
            the initial application package that is provided to 
            prospective applicants a copy of its Good Neighbor Guidelines, 
            a document developed to provide any entity interested in 
            operating a treatment facility with ideas, suggestions, and 
            tips, identified by experienced providers and licensing 
            reviewers, for establishing and maintaining positive 
            relationships in the community.  The guidelines recommend that 
            treatment facility operators know the proposed neighborhood 
            and the appropriate zoning requirements; ensure that all 
            required fire permits, licenses, business licenses, and any 
            other permits have been secured; prepare a neighbor 
            introduction letter and written materials about the program 
            that can be shared with neighbors; and, develop a neighborhood 
            complaint protocol to inform staff of the procedure to follow 
            should a neighbor complain to the treatment facility.  DADP 
            investigates all complaints involving licensed treatment 
            facilities and averages a total of 400 complaints per year 
            regarding the 2,500 facilities that are currently licensed.

           6)SITING OF FACILITIES  .  According to the federal Substance 








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            Abuse and Mental Health Services Administration's (SAMHSA) 
            publication entitled "Siting Drug and Alcohol Treatment 
            Programs: Legal Challenges to the NIMBY Syndrome," many people 
            recognize the pervasiveness of alcohol and drug problems but 
            such concern has not always resulted in communities welcoming 
            alcohol and other drug treatment programs into their 
            neighborhoods.  Community opposition, often referred to as 
            "not in my backyard" (NIMBY) syndrome, often prevents or 
            delays the siting of a treatment program.  The SAMHSA 
            publication states that the NIMBY syndrome is not new and does 
            not arise solely in opposition to alcohol and other drug 
            treatment programs.  Community resistance is often mobilized 
            to prevent the opening or expansion of many types of health 
            and social service facilities, including shelters for the 
            homeless, group homes for the mentally ill, halfway houses for 
            ex-offenders, and health-related facilities for those with 
            AIDS.  According to the SAMHSA publication, there are five 
            myths related to locating a treatment facility: a) Community 
            residents may fear that property values will decline; b) 
            Merchants may be concerned that crime will increase; c) The 
            community may believe that a treatment program will bring in 
            "outsiders," perhaps outsiders of a different class or ethnic 
            group; d) The community may believe that an over-concentration 
            of services already exists in the vicinity; and, e) The 
            community may simply confuse the problem's solutions with its 
            manifestations.  The SAMHSA publication states that, in almost 
            every instance, a community's fear of having an alcohol or 
            other drug treatment program located within its borders is 
            unfounded and, in reality, treatment programs pose no 
            legitimate danger to the health or welfare of the residents, 
            nor do they draw substance abusers and drug pushers to the 
            area.  

           7)FAIR HOUSING & ANTI-DISCRIMINATION PROTECTIONS  .  FEHA makes it 
            illegal to engage in various discriminatory practices relating 
            to the sale and rental of housing based on race, color, 
            religion, sex, marital status, national origin, ancestry, 
            familial status, or disability.  It also prohibits land use 
            regulations, zoning ordinances, and restrictive covenants from 
            discriminating in housing on the basis of the aforementioned 
            categories.  FEHA also states that groups of people with 
            disabilities living together in a single dwelling unit are 
            considered a family.

          In addition, the Americans with Disability Act of 1990 (ADA) 








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            gives civil rights protection to individuals with  
            disabilities, similar to the protection provided to  
            individuals on the basis of race, sex, national origin, and  
            religion.  Alcohol and drug dependency are considered a 
            disability that receive protection under the ADA.  
            Specifically, ADA applies to those who have successfully 
            completed a drug rehabilitation program, or who are currently 
            enrolled in such programs.

          Consequently, this bill could create disparate legal treatment 
            of entities with identical program models based on ownership 
            rather than type of operation, services offered, or conduct.  
            For example, under this bill, two identical treatment 
            facilities, both with six or fewer residents, in which one is 
            operated as the sole residential treatment facility of a 
            single operator, and the other is one of five residential 
            treatment facilities owned and operated by one operator, would 
            not have the same legal protections against local government 
            incursion.  Although both facilities would provide identical 
            services, and both would demonstrate compliance with DADP 
            requirements, the facility owned by the operator with multiple 
            locations would be subject to additional regulation by local 
            government, such as land use approvals and zoning 
            requirements, while the solely-owned treatment facility would 
            not.  

           8)PRIOR LEGISLATION  .  

             a)   AB 1284 (Huffman) of 2009 would have required DADP to 
               notify the appropriate city or county planning agency of a 
               proposed facility's application for licensure as a 
               residential treatment facility if it operates as an 
               integral component of an existing licensed facility managed 
               by the same licensee and is located within 300 feet of the 
               existing facility.  AB 1284 died on the Assembly 
               Appropriations Committee Suspense File.

             b)   SB 268 (Harman) of 2009, which was substantially similar 
               to SB 1000 (Harman) of 2008, failed passage in the Assembly 
               Health Committee and was subsequently amended to a 
               different topic.

             c)   AB 2903 (Huffman) of 2008 would have authorized DADP to 
               require any person or entity applying for licensure to 
               provide specified information to DADP before a license is 








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               issued.  AB 2903 was held in the Senate Health Committee.

             d)   SB 1000 (Harman) of 2008 would have required applicants 
               seeking a treatment facility license from DADP to certify 
               that the facility is consistent with local zoning 
               ordinances and would have required DADP to verify the 
               certification.  SB 1000 failed passage in the Senate Health 
               Committee.

             e)   AB 724 (Benoit) of 2007 would have defined a sober 
               living home as a residential property that is operated as a 
               cooperative living arrangement to provide an alcohol and 
               drug free environment for persons recovering from 
               alcoholism or drug abuse and meets other specified 
               requirements.  AB 724 failed passage in the Senate Health 
               Committee.

             f)   SB 530 (Dutton) of 2007 would have prohibited DADP from 
               licensing a treatment facility if another treatment 
               facility was located within 300 feet.  SB 530 was held in 
               the Senate Health Committee.

             g)   AB 370 (Adams) of 2007 would have permitted a local 
               government to include a residential care facility serving 
               six or fewer persons, including a sober living facility, 
               within the definition of single family residence.  AB 370 
               died on the Assembly Appropriations Committee Suspense 
               File.

             h)   AB 3007 (Emmerson) of 2006 would have prohibited DADP 
               from licensing a treatment facility if another treatment 
               facility was located within 300 feet.  AB 3007 died on the 
               Assembly Appropriations Committee Suspense File.

           9)SUPPORT  .  Maintain Our Residential Neighborhoods (MORN) writes 
            in support that this bill will ensure that the state agency 
            charged with oversight of treatment facilities for recovering 
            addicts is properly apprised of the deteriorating safety 
            measures in the rapidly proliferating and unregulated 
            rehabilitation businesses located throughout local 
            communities.  MORN believes this bill will eliminate the 
            practice of what it calls quasi-psychiatric integral 
            facilities masquerading as rehabilitation businesses that 
            house clients in sober living homes and bypass the appropriate 
            requirements in state law for residential treatment 








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            facilities.  The City of Laguna Beach writes in support of the 
            introduced version of this bill, stating that it gives DADP 
            the necessary authority to monitor all drug and alcohol 
            treatment facilities in California.  

           10)OPPOSITION  .  Opponents, representing treatment providers, 
            contend that this bill reflects a long and sad history of 
            stigma attached to individuals who are in recovery from 
            substance abuse disorders.  The County Alcohol and Drug 
            Program Administrators Association of California asserts that 
            the obvious solution to untreated substance abuse, which lies 
            at the root of some community problems, is to provide more 
            resources for treatment, not to target or discriminate against 
            individuals in recovery who are trying to straighten out their 
            lives.  The California Association of Addiction Recovery 
            Resources argues that this bill would entitle local 
            governments to discriminate against a protected class of 
            people by denying recovering addicts opportunities for housing 
            and result in an even greater shortage of community-based 
            treatment programs that currently exist.  Cliffside Malibu 
            points out that existing law already provides a carefully 
            constructed regulatory scheme designed to foster the recovery 
            of individuals suffering from alcohol or drug abuse by 
            allowing for the operation of treatment programs in 
            residential neighborhoods and notes that a provider with 
            multiple 6-bed locations is required to adequately demonstrate 
            that each program is functioning independently prior to 
            receiving a valid license.  Elements Behavioral Health, CRC 
            Health Group, Inc. and Narconon Fresh Start add that this bill 
            needlessly disrupts well established recovery programs.  

           11)POLICY COMMENTS  .  

              a)   Conflicts with other state laws  .  Under current law, a 
               licensed treatment facility, as with any development, is 
               required to comply with local land use restrictions.  There 
               is, however, a significant difference in that state law 
               requires an alcoholism or drug abuse treatment facility 
               serving six or fewer persons to be considered a residential 
               use of property for the purposes of state and local 
               regulation.  As a residential use, a treatment facility 
               with six or fewer persons must only comply with those local 
               requirements that apply to persons living in other single 
               family residences.  For example, under existing law, a 
               facility of six would require no land use approval in most 








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               instances.  However, for a facility of seven or more 
               persons, a local government could, and often does, require 
               a conditional use permit or other land use permit.  By 
               defining individual integral facilities as those that 
               collectively serve seven or more persons, this bill 
               directly conflicts with these other state laws that require 
               these smaller treatment facilities to be treated as 
               residential properties.

              b)   Potential conflict regarding oversight authority  .  DADP 
               is proposed for elimination as part of the Governor's 
               fiscal year 2012-13 Budget and its respective programs are 
               being proposed for transfer to other state departments.  
               Specifically, DADP's licensing activities are being 
               proposed to shift to the Department of Social Services.  In 
               light of this and other restructuring proposals that have 
               yet to be approved by the Legislature, is it appropriate at 
               this time to impose additional licensing responsibilities 
               on DADP for the newly-defined category of providers in this 
               bill?     

           REGISTERED SUPPORT / OPPOSITION  :  

           Support 
           
          City of Laguna Beach (prior version)
          Maintain Our Residential Neighborhoods

           Opposition 
           
          California Association of Addiction Recovery Resources 
          California Society of Addiction Medicine
          Cliffside Malibu
          County Alcohol and Drug Program Administrators Association of 
          California
          CRC Health Group, Inc.
          Elements Behavioral Health
          Narconon Fresh Start
           
          Analysis Prepared by  :    Cassie Royce / HEALTH / (916) 319-2097