Arizona 2025 2025 Regular Session

Arizona Senate Bill SB1308 Comm Sub / Analysis

Filed 02/03/2025

                    Assigned to HHS 	FOR COMMITTEE 
 
 
 
 
ARIZONA STATE SENATE 
Fifty-Seventh Legislature, First Regular Session 
 
FACT SHEET FOR S.B. 1308 
 
sober living homes 
Purpose 
Modifies requirements of the Department of Health Services (DHS) relating to the 
licensing, oversight and regulation of sober living homes. Prescribes guidelines for the inspection 
and penalizing of sober living homes that are noncompliant with applicable state and local 
regulations.  
Background 
A sober living home is any premises, place or building that provides alcohol-free or  
drug-free housing that: 1) promotes independent living and life skills development; 2) may provide 
activities that are directed primarily toward recovery from substance use disorders; 3) provides a 
supervised setting to a group of unrelated individuals who are recovering from substance use 
disorders; and 4) does not provide any medical or clinical services or medication administration 
on-site, except for verification of abstinence (A.R.S. § 36-2061). 
Statute requires the Director of DHS (Director) to establish minimum standards and 
requirements for the licensure of sober living homes to ensure the public health, safety and welfare. 
The Director may use the current standards adopted by any recognized national organization 
approved by DHS as guidelines in prescribing the minimal standards and requirements but must 
include outlined statutory policies and procedures (A.R.S. § 36-2062). 
Sober living homes that are not currently licensed but have been certified by a certifying 
organization may operate in Arizona, with the certification acting in lieu of licensure until the 
sober living home is licensed. Certified sober living homes must apply for licensure to DHS within 
90 days after initial licensure rules are final and DHS must alert the applicable certifying 
organization when this occurs (A.R.S. § 36-2064).  
On determination by the Director that there is reasonable cause to believe a sober living 
home is not adhering to state laws governing sober living homes, the Director and any duly 
assigned DHS employee or agent may enter the premises of the sober living home at any 
reasonable time to determine the home's state of compliance with state and local sober living home 
regulations. If an inspection reveals that a sober living home is noncompliant with state and local 
regulations, the Director may take action, including suspension or revocation of licensure. 
Noncompliant sober living homes are subject to a daily civil penalty of up to $500 for each 
violation (A.R.S. § 36-2063). 
There is no anticipated fiscal impact to the state General Fund associated with this 
legislation. 
   FACT SHEET 
S.B. 1308 
Page 2 
 
 
Provisions 
DHS Minimum Standards and Requirements 
1. Requires DHS standards and requirements for the licensure of sober living homes to include 
policies and procedures to be implemented if a license is suspended or revoked. 
2. Requires DHS minimum health and safety standards for sober living homes to include policies 
and procedures that require each sober living home to maintain an environment that: 
a) promotes the recovery, health and safety of residents and the safety of the surrounding 
neighborhood and community at large; and 
b) is free from alcohol and illegal substances at all times and requires abstinence from alcohol 
and illicit drugs.  
3. Requires DHS minimum health and safety standards for sober living homes to include policies 
and procedures for: 
a) notifying DHS of a death, permanent or severe harm or overdose of a resident; 
b) providing activities that promote independent living and life skills development; and 
c) providing activities directed primarily toward recovery from substance use disorders. 
4. Directs DHS to identify on each license the maximum number of residents who are allowed to 
live in the sober living home, including any manager or other staff living on the premises. 
5. Requires DHS or its third-party contractor to conduct a physical, on-site inspection of a sober 
living home to verify compliance with sober living home regulations: 
a) before issuing an initial license or approving any proposed change in the maximum number 
of residents or any construction or modification of a sober living home; 
b) at least annually for each sober living home; 
c) upon request by local law enforcement; 
d) on determination by the Director that there is reasonable cause to believe that a sober living 
home is not adhering to sober living home regulations; and 
e) on notification by a sober living home that the sober living home believes it is in substantial 
compliance with sober living home regulations.  
Disciplinary Action 
6. Authorizes the Director to deny, revoke or suspend a sober living home license if any owner, 
officer, agent or employee of the sober living home: 
a) violates sober living home statutes or rules; 
b) commits a felony rising out of or in connection with the operation of a sober living home; or 
c) knowingly aids, allows or abets in submitting false or inaccurate information required 
under law. 
7. Allows the Director to order the immediate termination of any specific service, procedure or 
practice of a sober living home, on notice to the owner of the sober living home, if there is 
reasonable suspicion that a violation has occurred that immediately affects the life or safety of 
residents.  FACT SHEET 
S.B. 1308 
Page 3 
 
 
8. Authorizes the Director to continue to pursue any court, administrative or enforcement action 
against a licensee even if the sober living home has closed or is in the process of being sold or 
transferred. 
9. Allows DHS to revoke or suspend a sober living home license or deny an application if: 
a) the applicant, licensee or a controlling person has a sober living home or health care 
institution license that is in an enforcement or court action related to the health and safety 
of residents; 
b) DHS has determined that the issuance of a license is likely to jeopardize resident safety; 
c) the applicant, licensee or a controlling person has had, in any state or jurisdiction, an 
application or license to operate a sober living home or health care institution denied, 
suspended or revoked unless the denial was based on the failure to complete the licensing 
process or pay a required licensing fee within the required time frame; 
d) the applicant, licensee or a controlling person has had a health professional license or 
certificate denied, suspended or revoked; or 
e) the applicant, licensee or a controlling person provides false or misleading information to 
DHS. 
10. Allows DHS to deny a change in ownership of a sober living home if it is determined that the 
transfer, whether involving a direct or indirect owner, may jeopardize patient safety. 
11. Requires DHS or its third-party contractor to investigate a sober living home after receiving a 
complaint identifying an alleged violation by the sober living home. 
12. Stipulates that, if a licensee, owner, officer, agent or employee of a sober living home refuses 
to allow DHS or its agent to inspect the premises, the action is deemed reasonable cause to 
believe that a substantial violation has occurred.  
13. Declares a licensee's record of conviction, or a copy of the record certified by the applicable 
clerk of the court or judge, as conclusive evidence of a conviction for purposes of denial, 
revocation or suspension of licensure. 
14. Allows the Director, if there is reasonable suspicion that a violation has occurred that 
immediately affects the life or safety of residents, to order one or more of the following 
sanctions until the sober living home is in substantial compliance with applicable statutes and 
rules:  
a) the immediate restriction of the acceptance and reacceptance of residents to the sober living 
home; 
b) the selected transfer of residents out of the sober living home; 
c) the reduction of capacity; and 
d) the termination of any specific service, policy, procedure or practice. 
15. Requires a sanctioned sober living home to notify DHS in writing when it believes it is in 
substantial compliance. 
16. Requires DHS to conduct an inspection, within 14 days, of a sanctioned sober living home that 
provides notification of substantial compliance.  FACT SHEET 
S.B. 1308 
Page 4 
 
 
17. Stipulates that, if DHS determines a sanctioned sober living home has achieved substantial 
compliance, the Director must rescind any sanctions. 
18. Stipulates that, if DHS determines a sanctioned sober living home is not in substantial 
compliance after notification, all sanctions remain in effect. 
19. Establishes a process and timeline for further inspections of a sanctioned sober living home 
that fails its initial follow-up inspection. 
20. Requires sober living home notifications of substantial compliance to be made by certified 
mail. 
21. Allows a licensee subject to an intermediate sanction by the Director to request a hearing, in 
writing and within 10 days of sanctioning, to review the Director's action. 
22. Requires the Office of Administrative Hearings (OAH) to conduct an administrative hearing 
within seven business days after the notice of appeal has been filed. 
23. Authorizes the Director to issue a cease and desist order against a sober living home that does 
not hold a current or valid license or that exceeds the scope of authorized activities or services. 
24. Allows the Attorney General or a county attorney to bring an action for injunction to restrain 
a sober living home violation or to enjoin future operation of maintenance of the sober living 
home until it is in compliance. 
25. Allows DHS, before issuing a cease and desist order or bringing an action for an injunction, to 
issue the owner or agent of a noncompliant sober living home a certified letter stating the 
factual basis for DHS's belief that the sober living home is operating in violation, which may 
include a description of the available enforcement options if the violations continue. 
Civil Penalties 
26. Increases the cap on civil penalties for violations of sober living home regulations from $500 
to $1,000. 
27. Requires DHS, in determining the amount of a civil penalty, to consider: 
a) repeated violations of statutes or rules; 
b) patterns of noncompliance; 
c) types and severity of violations; 
d) the potential for and occurrences of actual harm, including to staff or residents; 
e) threats to health and safety, including to staff or residents; 
f) the number of persons affected by the violations; 
g) the number of violations; 
h) the size of the facility; and 
i) the length of time that the violations have been occurring. 
28. Authorizes a civil penalty for violation of sober living home regulations to be assessed for each 
resident or person determined to be impacted by DHS.  FACT SHEET 
S.B. 1308 
Page 5 
 
 
29. Subjects a person operating a sober living home that has failed to obtain or maintain licensure 
to an additional civil penalty for each violation. 
30. Subjects a sober living home with a business relationship with a person or entity found to be 
engaging in fraudulent, abusive or misleading health-care related practices to daily civil 
penalties, including license suspension or revocation. 
Local Jurisdictions 
31. Requires DHS to notify a local jurisdiction of all initial licenses issued in that jurisdiction in 
the preceding month, if the local jurisdiction provides contact information to DHS for 
notifications relating to sober living homes. 
32. Specifies that DHS is not obligated to provide any notification relating to sober living homes 
to a local jurisdiction that does not provide its contact information. 
33. Requires a sober living home to obtain and maintain current documentation from the local 
jurisdiction verifying compliance with all local zoning, building, fire and licensing ordinances 
and rules, and provide the documentation to DHS: 
a) upon request; 
b) upon initial application for licensure; and 
c) when requesting approval for a proposed change in the maximum number of residents or 
any construction or modification to the sober living home.  
34. Requires municipalities with zoning ordinances that restrict the distance between sober living 
homes or that enact building or fire code requirements for the operation of sober living homes 
to establish a procedure in which a deviation from the requirements may be granted as a 
reasonable accommodation under the federal Fair Housing Act. 
35. Prohibits municipalities from reclassifying a single-family home under a local building or fire 
code solely because the home is subject to a sober living home license application. 
36. Requires DHS to notify, within five business days, a political subdivision that requests an 
update on the status of a complaint investigation and to provide its findings, including copies 
of investigative reports without personal identifying information, if requested. 
37. Requires DHS to notify the designated employee of the local jurisdiction of all approvals and 
denials for licensure and renewal and all requests for changes affecting a sober living home in 
that jurisdiction within 30 days of receipt of an application for licensure, licensure renewal or 
request for changes. 
Fingerprinting Requirements 
38. Requires, as a condition of licensure for sober living homes that receive government-funded 
referrals or public funding, the licensee and each staff member of the sober living home to: 
a) have a valid fingerprint clearance card; or 
b) apply for a fingerprint clearance card within 20 days of beginning employment or 
contracted work.   FACT SHEET 
S.B. 1308 
Page 6 
 
 
51. Requires licensees to make a documented, good faith effort to verify the current status of each 
paid staff member's fingerprint clearance card. 
52. Directs a licensee or paid staff member to submit a completed application provided by the 
Department of Public Safety within 20 days of beginning employment or contracted work. 
53. Prohibits, with exception, a sober living home from allowing a paid staff member to continue 
employment or contracted work if the person has been denied a fingerprint clearance card or 
had a card revoked or suspended. 
54. Exempts from fingerprint clearance card requirements, until a decision is made by the Board 
of Fingerprinting, licensees and staff members who are eligible for and provide documentation 
of having applied for a good cause exception but who have not yet received a decision. 
55. Allows a sober living home to employ or continue to employ a staff member who is denied a 
fingerprint clearance card if the staff member: 
a) successfully completes treatment for substance use or, if applicable, recidivism reduction 
as prescribed by rule; and 
b) passes a background and screening evaluation conducted by the sober living home, 
including prior employment or personal reference checks, demonstrating that the 
individual is not a threat to the health or safety of the residents of the home  
56. Enacts fingerprint clearance card requirements six months after the general effective date. 
Certified Sober Living Homes 
57. Removes the ability of a certified sober living home to use certification in lieu of licensure 
until it becomes licensed. 
58. Adds both of the following to the requirements of a certified sober living home seeking 
licensure without inspection: 
a) the home does not receive any monies from the state or federal government; and 
b) the home has not been subject to an enforcement action within the preceding year. 
59. Allows the Director to accept proof that a sober living home is certified in lieu of all required 
compliance inspections if:  
a) the Director receives a copy of the sober living home's certification report for the licensure 
period and the sober living home; and 
b) the sober living home is certified by a certifying organization. 
60. Allows DHS, if a certification report is not valid for a sober living home's entire licensure 
period, to conduct a compliance inspection of the sober living home during the time period in 
which DHS does not have a valid certification report. 
Miscellaneous 
61. Prohibits investigative reports prepared by DHS or its third-party contractor from including 
personal identifying information of sober living home residents.  FACT SHEET 
S.B. 1308 
Page 7 
 
 
62. Prohibits DHS from contracting with any owner, operator, administrator, accrediting body or 
association of sober living homes. 
63. States that any application for license renewal constitutes permission for and complete 
acquiescence in any entry or inspection of the premises during the pendency of the application. 
64. Prohibits sober living home license applicants from self-attesting to compliance in lieu of an 
inspection. 
65. Prohibits a person, behavioral health professional, health care provider, health care institution 
or sober living home, regardless of whether the entity is only providing substance use disorder 
services, from paying or soliciting any commission, kickback or bribe for patient referrals or 
enrollment in a sober living home. 
66. Requires behavioral health professionals to refer patients only to licensed sober living homes. 
67. Requires DHS, on request, to disclose the address of a sober living home to a third-party 
contractor of DHS. 
68. Asserts that a sober living home is not prohibited from publishing or self-disclosing its address. 
69. Requires DHS to include in its annual report the number of complaints against licensed sober 
living homes: 
a) received by DHS each year; 
b) investigated by DHS or its third-party contractor; and 
c) that resulted in inspections by DHS or its third-party contractor. 
70. Directs DHS, by January 31 of each year, to submit to the Health and Human Services 
Committees of the Senate and House of Representatives, or their successor committees, a 
report on licensed and unlicensed sober living homes, including the number of applicable: 
a) complaints received against licensed sober living homes investigated by DHS or its third-
party contractor each year; 
b) complaints against residences, places, dwelling units or other premises suspected of being 
unlicensed sober living homes; 
c) investigations resulting from complaints against unlicensed sober living homes, including 
how many of those investigated met the legal requirements for sober living home licensure 
and how DHS took action on its findings; and  
d) enforcement actions taken against licensed and unlicensed sober living homes each year. 
72. Asserts that the Legislature recognizes the need to protect both the people in recovery and the 
public from unscrupulous and incompetent operators of sober living homes and finds that 
substantial compliance with and enforcement of the requirements of state law are necessary 
and required to ensure the public health, safety and welfare.  
73. Requires third-party contractors to be paid from the Health Services Licensing Fund. 
   FACT SHEET 
S.B. 1308 
Page 8 
 
 
74. Redefines sober living home as any premises, place or dwelling unit, or person that provides 
any premises, place or dwelling unit, that may provide verification of abstinence and does at 
least one of the following: 
a) provides alcohol-free and drug-free housing in a supervised, monitored or peer-led 
environment for individuals who are in recovery or seeking recovery from any substance 
use disorder; or 
b) advertises, markets, holds itself out or implies through any means, including oral, written, 
electronic or printed means, that it provides or will provide a living environment directed 
toward recovery from any substance use disorder, including housing that: 
i. provides or arranges for residents to receive any assistance or activity directed toward 
recovery from any substance use disorder; or 
ii. arranges for residents to receive any service or treatment directed toward recovery from 
any substance use disorder. 
75. Excludes each of the following from the definition of sober living home: 
a) any premises, place or dwelling unit that is licensed to provide on-site medical services, 
behavioral health services or medication administration; 
b) any person who provides a premises, place or dwelling unit directed toward recovery from 
any substance abuse disorder exclusively to residents who are related to the person by 
affinity or consanguinity of the first or second degree, a person who is a close friend of the 
person for whom the person serves as a legal guardian, and the person is not operating the 
premises, place or dwelling unit as a business and does not require, collect or receive any 
form of compensation for profit from the residents, including insurance or rent; and 
c) any housing for persons in recovery from substance use disorders that is self-run, self-
supported, alcohol and drug free, chartered and monitored by a nationally recognized 
nonprofit credentialing entity, established in accordance with federal law and held to the 
standards of that nationally recognized nonprofit credentialing entity. 
76. Defines terms. 
77. Makes technical and conforming changes. 
78. Becomes effective on the general effective date. 
Prepared by Senate Research 
February 3, 2025 
MM/slp