BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          AB 2491 (Nestande) - Substance abuse: adult recovery maintenance  
          facilities.
          
          Amended: July 1, 2014           Policy Vote: Health 8-0
          Urgency: No                     Mandate: No
          Hearing Date: August 4, 2014                            
          Consultant: Brendan McCarthy    
          
          This bill meets the criteria for referral to the Suspense File.
          
          
          Bill Summary: AB 2491 would require the Department of Health  
          Care Services to license and regulate adult recovery maintenance  
          facilities.

          Fiscal Impact: 
              One-time costs of up to $1.4 million to develop policies,  
              develop and adopt regulations, and make information  
              technology changes to facilitate licensing (General Fund).

              Ongoing costs up to $6.5 million per year to process  
              license applications and renewals, conduct site visits, and  
              take enforcement actions (Residential and Outpatient  
              Licensing Fund or a new special fund). The total number of  
              adult recovery maintenance facilities operating in the state  
              is not known. The Department of Health Care Services  
              estimates that there are up to 2,000 facilities in the state  
              that could be subject to licensure under this bill. The  
              preceding cost estimate is based on 2,000 licensed  
              facilities. In practice, the scope of the licensing program  
              will depend on the number of licensees (plus enforcement  
              actions against unlicensed providers).

          Background: Under current law, the Department of Health Care  
          Services licenses and regulates alcohol or drug abuse recovery  
          or treatment facilities. Recovery or treatment facilities  
          provide 24-hour, non-medical residential services to adults. 

          Under current law, adult recovery maintenance facilities  
          (sometimes referred to as sober living homes) are not licensed  
          by state or local governments. Typically, these facilities are  
          located in residential neighborhoods and may not be licensed as  








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          a business by a local government. Adult recovery maintenance  
          facilities do not provide direct services, such as one-on-one  
          counselling. Rather, they provide a sober living place for  
          several individuals who are recovering from alcohol or drug  
          abuse and wish to live in a drug and alcohol free living  
          arrangement.

          Proposed Law: AB 2491 would require the Department of Health  
          Care Services to license and regulate adult recovery maintenance  
          facilities.

          Specific provisions of the bill would:
              Require the Department of Health Care Services to adopt  
              emergency regulations governing the licensing and operation  
              of adult recovery maintenance facilities, including fees to  
              be paid by licensees by July 1, 2016;
              Define adult recovery maintenance facility - including a  
              prohibition on providing professional recovery or treatment  
              services;
              Require licensing to commence no later than January 1,  
              2017.

          Related Legislation: 
              SB 992 (Wiggins, 2008) was substantially similar to this  
              bill. That bill was vetoed by Governor Schwarzenegger.
              AB 2335 (Mansoor) would have defined sober living homes in  
              statute and exempted sober living homes from licensure as  
              recovery or treatment facilities. That bill failed passage  
              in the Assembly Health Committee;
              AB 2374 (Mansoor) would require residential treatment  
              facilities to report resident deaths and other events in a  
              timely fashion and would make changes to the requirements  
              for registering counselors. That bill will be heard in this  
              committee.

          Staff Comments: The total number of adult recovery maintenance  
          facilities, sober living homes, or similar entities in the state  
          is not known. According to the Department, there are two private  
          entities that register sober living homes. Collectively, they  
          have registered about 850 sober living homes in the state.  
          However, these organizations have indicated that they may be  
          registering as few as one-third of the total number of sober  
          living homes in the state.









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