| 1 | 1 | | CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 2938Introduced by Assembly Member DalyFebruary 18, 2022 An act to amend Section 11853.5 of the Health and Safety Code, relating to substance abuse. LEGISLATIVE COUNSEL'S DIGESTAB 2938, as introduced, Daly. Substance abuse: alcoholism and drugs.Existing law requires the State Department of Health Care Services to license and regulate alcoholism or drug abuse recovery or treatment facilities serving adults. Existing law also defines a 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 pursuant to those provisions or does not provide licensable services. Existing law requires a government entity that contracts with a privately owned recovery residence to provide recovery services or with an alcoholism or drug abuse recovery or treatment facility to require the contractor to maintain specified insurance coverages.This bill would make technical, nonsubstantive changes to those provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 11853.5 of the Health and Safety Code is amended to read:11853.5. (a) Any A government entity that contracts with a privately owned recovery residence to provide recovery services, or an alcoholism or drug abuse recovery or treatment facility to provide treatment services for more than six residents, shall require the contractor, at all times, to maintain all of the following insurance coverages, which shall include the government entity as an additional insured:(1) Commercial general liability insurance that includes coverage for premises liability, products and completed operations, contractual liability, personal injury and advertising liability, abuse, molestation, sexual actions, and assault and battery, with minimum coverage amounts for bodily injury or property damage of not less than one million dollars ($1,000,000) per occurrence.(2) Commercial or business automobile liability insurance covering all owned vehicles, hired or leased vehicles, nonowned vehicles, and borrowed and permissive uses, with minimum coverage amounts for bodily injury or property damage of not less than one million dollars ($1,000,000) per occurrence.(3) Workers compensation insurance, as required by law. Notwithstanding subdivision (b) of Section 3700 of the Labor Code, a certificate of self-insurance obtained pursuant to that subdivision does not satisfy this requirement.(4) Employers liability insurance, with minimum coverage amounts for bodily injury or disease of not less than one hundred thousand dollars ($100,000) per occurrence.(5) Professional liability and errors and omissions insurance that includes an endorsement for contractual liability, with minimum coverage amounts of one million dollars ($1,000,000) per occurrence and two million dollars ($2,000,000) aggregate. The contract shall include an endorsement for defense and indemnification of the government entity with which the licensee has contracted.(b) Any A government entity that contracts with an alcoholism or drug abuse recovery or treatment facility to provide treatment services for six or fewer residents, shall require the contractor, at all times, to maintain general liability insurance coverages, which shall include the government entity as an additional insured.(c) (1) A privately owned recovery residence that contracts with a government entity may meet the insurance requirements of this section by procuring coverage from an admitted insurer, or a nonadmitted insurer that is eligible to insure a home state insured under Chapter 6 (commencing with Section 1760) of Part 2 of Division 1 of the Insurance Code.(2) Notwithstanding paragraph (1), the workers compensation insurance required by this section shall be obtained as required by Section 3700 of the Labor Code.(d) This section does not prohibit a government entity from requiring quality and performance standards or levels of insurance coverage that are similar to, or that exceed, the standards and levels described in this section when contracting for recovery residence services.(e) For the purposes of this section, the following terms have the following meanings:(1) Alcoholism or drug abuse recovery or treatment facility has the same meaning as in Section 11834.02.(2) Government entity means the state, a county, or a city.(3) Recovery residence has the same meaning as in Section 11833.05.(f) This section shall apply to contracts entered into, renewed, or amended on or after January 1, 2022. |
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| 3 | 3 | | CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 2938Introduced by Assembly Member DalyFebruary 18, 2022 An act to amend Section 11853.5 of the Health and Safety Code, relating to substance abuse. LEGISLATIVE COUNSEL'S DIGESTAB 2938, as introduced, Daly. Substance abuse: alcoholism and drugs.Existing law requires the State Department of Health Care Services to license and regulate alcoholism or drug abuse recovery or treatment facilities serving adults. Existing law also defines a 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 pursuant to those provisions or does not provide licensable services. Existing law requires a government entity that contracts with a privately owned recovery residence to provide recovery services or with an alcoholism or drug abuse recovery or treatment facility to require the contractor to maintain specified insurance coverages.This bill would make technical, nonsubstantive changes to those provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO |
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| 9 | 9 | | CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION |
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| 10 | 10 | | |
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| 11 | 11 | | Assembly Bill |
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| 12 | 12 | | |
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| 13 | 13 | | No. 2938 |
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| 14 | 14 | | |
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| 15 | 15 | | Introduced by Assembly Member DalyFebruary 18, 2022 |
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| 17 | 17 | | Introduced by Assembly Member Daly |
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| 18 | 18 | | February 18, 2022 |
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| 19 | 19 | | |
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| 20 | 20 | | An act to amend Section 11853.5 of the Health and Safety Code, relating to substance abuse. |
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| 21 | 21 | | |
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| 22 | 22 | | LEGISLATIVE COUNSEL'S DIGEST |
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| 23 | 23 | | |
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| 24 | 24 | | ## LEGISLATIVE COUNSEL'S DIGEST |
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| 25 | 25 | | |
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| 26 | 26 | | AB 2938, as introduced, Daly. Substance abuse: alcoholism and drugs. |
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| 27 | 27 | | |
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| 28 | 28 | | Existing law requires the State Department of Health Care Services to license and regulate alcoholism or drug abuse recovery or treatment facilities serving adults. Existing law also defines a 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 pursuant to those provisions or does not provide licensable services. Existing law requires a government entity that contracts with a privately owned recovery residence to provide recovery services or with an alcoholism or drug abuse recovery or treatment facility to require the contractor to maintain specified insurance coverages.This bill would make technical, nonsubstantive changes to those provisions. |
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| 29 | 29 | | |
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| 30 | 30 | | Existing law requires the State Department of Health Care Services to license and regulate alcoholism or drug abuse recovery or treatment facilities serving adults. Existing law also defines a 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 pursuant to those provisions or does not provide licensable services. Existing law requires a government entity that contracts with a privately owned recovery residence to provide recovery services or with an alcoholism or drug abuse recovery or treatment facility to require the contractor to maintain specified insurance coverages. |
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| 31 | 31 | | |
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| 32 | 32 | | This bill would make technical, nonsubstantive changes to those provisions. |
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| 33 | 33 | | |
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| 34 | 34 | | ## Digest Key |
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| 35 | 35 | | |
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| 36 | 36 | | ## Bill Text |
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| 37 | 37 | | |
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| 38 | 38 | | The people of the State of California do enact as follows:SECTION 1. Section 11853.5 of the Health and Safety Code is amended to read:11853.5. (a) Any A government entity that contracts with a privately owned recovery residence to provide recovery services, or an alcoholism or drug abuse recovery or treatment facility to provide treatment services for more than six residents, shall require the contractor, at all times, to maintain all of the following insurance coverages, which shall include the government entity as an additional insured:(1) Commercial general liability insurance that includes coverage for premises liability, products and completed operations, contractual liability, personal injury and advertising liability, abuse, molestation, sexual actions, and assault and battery, with minimum coverage amounts for bodily injury or property damage of not less than one million dollars ($1,000,000) per occurrence.(2) Commercial or business automobile liability insurance covering all owned vehicles, hired or leased vehicles, nonowned vehicles, and borrowed and permissive uses, with minimum coverage amounts for bodily injury or property damage of not less than one million dollars ($1,000,000) per occurrence.(3) Workers compensation insurance, as required by law. Notwithstanding subdivision (b) of Section 3700 of the Labor Code, a certificate of self-insurance obtained pursuant to that subdivision does not satisfy this requirement.(4) Employers liability insurance, with minimum coverage amounts for bodily injury or disease of not less than one hundred thousand dollars ($100,000) per occurrence.(5) Professional liability and errors and omissions insurance that includes an endorsement for contractual liability, with minimum coverage amounts of one million dollars ($1,000,000) per occurrence and two million dollars ($2,000,000) aggregate. The contract shall include an endorsement for defense and indemnification of the government entity with which the licensee has contracted.(b) Any A government entity that contracts with an alcoholism or drug abuse recovery or treatment facility to provide treatment services for six or fewer residents, shall require the contractor, at all times, to maintain general liability insurance coverages, which shall include the government entity as an additional insured.(c) (1) A privately owned recovery residence that contracts with a government entity may meet the insurance requirements of this section by procuring coverage from an admitted insurer, or a nonadmitted insurer that is eligible to insure a home state insured under Chapter 6 (commencing with Section 1760) of Part 2 of Division 1 of the Insurance Code.(2) Notwithstanding paragraph (1), the workers compensation insurance required by this section shall be obtained as required by Section 3700 of the Labor Code.(d) This section does not prohibit a government entity from requiring quality and performance standards or levels of insurance coverage that are similar to, or that exceed, the standards and levels described in this section when contracting for recovery residence services.(e) For the purposes of this section, the following terms have the following meanings:(1) Alcoholism or drug abuse recovery or treatment facility has the same meaning as in Section 11834.02.(2) Government entity means the state, a county, or a city.(3) Recovery residence has the same meaning as in Section 11833.05.(f) This section shall apply to contracts entered into, renewed, or amended on or after January 1, 2022. |
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| 40 | 40 | | The people of the State of California do enact as follows: |
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| 42 | 42 | | ## The people of the State of California do enact as follows: |
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| 43 | 43 | | |
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| 44 | 44 | | SECTION 1. Section 11853.5 of the Health and Safety Code is amended to read:11853.5. (a) Any A government entity that contracts with a privately owned recovery residence to provide recovery services, or an alcoholism or drug abuse recovery or treatment facility to provide treatment services for more than six residents, shall require the contractor, at all times, to maintain all of the following insurance coverages, which shall include the government entity as an additional insured:(1) Commercial general liability insurance that includes coverage for premises liability, products and completed operations, contractual liability, personal injury and advertising liability, abuse, molestation, sexual actions, and assault and battery, with minimum coverage amounts for bodily injury or property damage of not less than one million dollars ($1,000,000) per occurrence.(2) Commercial or business automobile liability insurance covering all owned vehicles, hired or leased vehicles, nonowned vehicles, and borrowed and permissive uses, with minimum coverage amounts for bodily injury or property damage of not less than one million dollars ($1,000,000) per occurrence.(3) Workers compensation insurance, as required by law. Notwithstanding subdivision (b) of Section 3700 of the Labor Code, a certificate of self-insurance obtained pursuant to that subdivision does not satisfy this requirement.(4) Employers liability insurance, with minimum coverage amounts for bodily injury or disease of not less than one hundred thousand dollars ($100,000) per occurrence.(5) Professional liability and errors and omissions insurance that includes an endorsement for contractual liability, with minimum coverage amounts of one million dollars ($1,000,000) per occurrence and two million dollars ($2,000,000) aggregate. The contract shall include an endorsement for defense and indemnification of the government entity with which the licensee has contracted.(b) Any A government entity that contracts with an alcoholism or drug abuse recovery or treatment facility to provide treatment services for six or fewer residents, shall require the contractor, at all times, to maintain general liability insurance coverages, which shall include the government entity as an additional insured.(c) (1) A privately owned recovery residence that contracts with a government entity may meet the insurance requirements of this section by procuring coverage from an admitted insurer, or a nonadmitted insurer that is eligible to insure a home state insured under Chapter 6 (commencing with Section 1760) of Part 2 of Division 1 of the Insurance Code.(2) Notwithstanding paragraph (1), the workers compensation insurance required by this section shall be obtained as required by Section 3700 of the Labor Code.(d) This section does not prohibit a government entity from requiring quality and performance standards or levels of insurance coverage that are similar to, or that exceed, the standards and levels described in this section when contracting for recovery residence services.(e) For the purposes of this section, the following terms have the following meanings:(1) Alcoholism or drug abuse recovery or treatment facility has the same meaning as in Section 11834.02.(2) Government entity means the state, a county, or a city.(3) Recovery residence has the same meaning as in Section 11833.05.(f) This section shall apply to contracts entered into, renewed, or amended on or after January 1, 2022. |
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| 46 | 46 | | SECTION 1. Section 11853.5 of the Health and Safety Code is amended to read: |
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| 47 | 47 | | |
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| 48 | 48 | | ### SECTION 1. |
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| 49 | 49 | | |
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| 50 | 50 | | 11853.5. (a) Any A government entity that contracts with a privately owned recovery residence to provide recovery services, or an alcoholism or drug abuse recovery or treatment facility to provide treatment services for more than six residents, shall require the contractor, at all times, to maintain all of the following insurance coverages, which shall include the government entity as an additional insured:(1) Commercial general liability insurance that includes coverage for premises liability, products and completed operations, contractual liability, personal injury and advertising liability, abuse, molestation, sexual actions, and assault and battery, with minimum coverage amounts for bodily injury or property damage of not less than one million dollars ($1,000,000) per occurrence.(2) Commercial or business automobile liability insurance covering all owned vehicles, hired or leased vehicles, nonowned vehicles, and borrowed and permissive uses, with minimum coverage amounts for bodily injury or property damage of not less than one million dollars ($1,000,000) per occurrence.(3) Workers compensation insurance, as required by law. Notwithstanding subdivision (b) of Section 3700 of the Labor Code, a certificate of self-insurance obtained pursuant to that subdivision does not satisfy this requirement.(4) Employers liability insurance, with minimum coverage amounts for bodily injury or disease of not less than one hundred thousand dollars ($100,000) per occurrence.(5) Professional liability and errors and omissions insurance that includes an endorsement for contractual liability, with minimum coverage amounts of one million dollars ($1,000,000) per occurrence and two million dollars ($2,000,000) aggregate. The contract shall include an endorsement for defense and indemnification of the government entity with which the licensee has contracted.(b) Any A government entity that contracts with an alcoholism or drug abuse recovery or treatment facility to provide treatment services for six or fewer residents, shall require the contractor, at all times, to maintain general liability insurance coverages, which shall include the government entity as an additional insured.(c) (1) A privately owned recovery residence that contracts with a government entity may meet the insurance requirements of this section by procuring coverage from an admitted insurer, or a nonadmitted insurer that is eligible to insure a home state insured under Chapter 6 (commencing with Section 1760) of Part 2 of Division 1 of the Insurance Code.(2) Notwithstanding paragraph (1), the workers compensation insurance required by this section shall be obtained as required by Section 3700 of the Labor Code.(d) This section does not prohibit a government entity from requiring quality and performance standards or levels of insurance coverage that are similar to, or that exceed, the standards and levels described in this section when contracting for recovery residence services.(e) For the purposes of this section, the following terms have the following meanings:(1) Alcoholism or drug abuse recovery or treatment facility has the same meaning as in Section 11834.02.(2) Government entity means the state, a county, or a city.(3) Recovery residence has the same meaning as in Section 11833.05.(f) This section shall apply to contracts entered into, renewed, or amended on or after January 1, 2022. |
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| 52 | 52 | | 11853.5. (a) Any A government entity that contracts with a privately owned recovery residence to provide recovery services, or an alcoholism or drug abuse recovery or treatment facility to provide treatment services for more than six residents, shall require the contractor, at all times, to maintain all of the following insurance coverages, which shall include the government entity as an additional insured:(1) Commercial general liability insurance that includes coverage for premises liability, products and completed operations, contractual liability, personal injury and advertising liability, abuse, molestation, sexual actions, and assault and battery, with minimum coverage amounts for bodily injury or property damage of not less than one million dollars ($1,000,000) per occurrence.(2) Commercial or business automobile liability insurance covering all owned vehicles, hired or leased vehicles, nonowned vehicles, and borrowed and permissive uses, with minimum coverage amounts for bodily injury or property damage of not less than one million dollars ($1,000,000) per occurrence.(3) Workers compensation insurance, as required by law. Notwithstanding subdivision (b) of Section 3700 of the Labor Code, a certificate of self-insurance obtained pursuant to that subdivision does not satisfy this requirement.(4) Employers liability insurance, with minimum coverage amounts for bodily injury or disease of not less than one hundred thousand dollars ($100,000) per occurrence.(5) Professional liability and errors and omissions insurance that includes an endorsement for contractual liability, with minimum coverage amounts of one million dollars ($1,000,000) per occurrence and two million dollars ($2,000,000) aggregate. The contract shall include an endorsement for defense and indemnification of the government entity with which the licensee has contracted.(b) Any A government entity that contracts with an alcoholism or drug abuse recovery or treatment facility to provide treatment services for six or fewer residents, shall require the contractor, at all times, to maintain general liability insurance coverages, which shall include the government entity as an additional insured.(c) (1) A privately owned recovery residence that contracts with a government entity may meet the insurance requirements of this section by procuring coverage from an admitted insurer, or a nonadmitted insurer that is eligible to insure a home state insured under Chapter 6 (commencing with Section 1760) of Part 2 of Division 1 of the Insurance Code.(2) Notwithstanding paragraph (1), the workers compensation insurance required by this section shall be obtained as required by Section 3700 of the Labor Code.(d) This section does not prohibit a government entity from requiring quality and performance standards or levels of insurance coverage that are similar to, or that exceed, the standards and levels described in this section when contracting for recovery residence services.(e) For the purposes of this section, the following terms have the following meanings:(1) Alcoholism or drug abuse recovery or treatment facility has the same meaning as in Section 11834.02.(2) Government entity means the state, a county, or a city.(3) Recovery residence has the same meaning as in Section 11833.05.(f) This section shall apply to contracts entered into, renewed, or amended on or after January 1, 2022. |
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| 54 | 54 | | 11853.5. (a) Any A government entity that contracts with a privately owned recovery residence to provide recovery services, or an alcoholism or drug abuse recovery or treatment facility to provide treatment services for more than six residents, shall require the contractor, at all times, to maintain all of the following insurance coverages, which shall include the government entity as an additional insured:(1) Commercial general liability insurance that includes coverage for premises liability, products and completed operations, contractual liability, personal injury and advertising liability, abuse, molestation, sexual actions, and assault and battery, with minimum coverage amounts for bodily injury or property damage of not less than one million dollars ($1,000,000) per occurrence.(2) Commercial or business automobile liability insurance covering all owned vehicles, hired or leased vehicles, nonowned vehicles, and borrowed and permissive uses, with minimum coverage amounts for bodily injury or property damage of not less than one million dollars ($1,000,000) per occurrence.(3) Workers compensation insurance, as required by law. Notwithstanding subdivision (b) of Section 3700 of the Labor Code, a certificate of self-insurance obtained pursuant to that subdivision does not satisfy this requirement.(4) Employers liability insurance, with minimum coverage amounts for bodily injury or disease of not less than one hundred thousand dollars ($100,000) per occurrence.(5) Professional liability and errors and omissions insurance that includes an endorsement for contractual liability, with minimum coverage amounts of one million dollars ($1,000,000) per occurrence and two million dollars ($2,000,000) aggregate. The contract shall include an endorsement for defense and indemnification of the government entity with which the licensee has contracted.(b) Any A government entity that contracts with an alcoholism or drug abuse recovery or treatment facility to provide treatment services for six or fewer residents, shall require the contractor, at all times, to maintain general liability insurance coverages, which shall include the government entity as an additional insured.(c) (1) A privately owned recovery residence that contracts with a government entity may meet the insurance requirements of this section by procuring coverage from an admitted insurer, or a nonadmitted insurer that is eligible to insure a home state insured under Chapter 6 (commencing with Section 1760) of Part 2 of Division 1 of the Insurance Code.(2) Notwithstanding paragraph (1), the workers compensation insurance required by this section shall be obtained as required by Section 3700 of the Labor Code.(d) This section does not prohibit a government entity from requiring quality and performance standards or levels of insurance coverage that are similar to, or that exceed, the standards and levels described in this section when contracting for recovery residence services.(e) For the purposes of this section, the following terms have the following meanings:(1) Alcoholism or drug abuse recovery or treatment facility has the same meaning as in Section 11834.02.(2) Government entity means the state, a county, or a city.(3) Recovery residence has the same meaning as in Section 11833.05.(f) This section shall apply to contracts entered into, renewed, or amended on or after January 1, 2022. |
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| 58 | 58 | | 11853.5. (a) Any A government entity that contracts with a privately owned recovery residence to provide recovery services, or an alcoholism or drug abuse recovery or treatment facility to provide treatment services for more than six residents, shall require the contractor, at all times, to maintain all of the following insurance coverages, which shall include the government entity as an additional insured: |
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| 60 | 60 | | (1) Commercial general liability insurance that includes coverage for premises liability, products and completed operations, contractual liability, personal injury and advertising liability, abuse, molestation, sexual actions, and assault and battery, with minimum coverage amounts for bodily injury or property damage of not less than one million dollars ($1,000,000) per occurrence. |
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| 62 | 62 | | (2) Commercial or business automobile liability insurance covering all owned vehicles, hired or leased vehicles, nonowned vehicles, and borrowed and permissive uses, with minimum coverage amounts for bodily injury or property damage of not less than one million dollars ($1,000,000) per occurrence. |
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| 64 | 64 | | (3) Workers compensation insurance, as required by law. Notwithstanding subdivision (b) of Section 3700 of the Labor Code, a certificate of self-insurance obtained pursuant to that subdivision does not satisfy this requirement. |
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| 65 | 65 | | |
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| 66 | 66 | | (4) Employers liability insurance, with minimum coverage amounts for bodily injury or disease of not less than one hundred thousand dollars ($100,000) per occurrence. |
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| 67 | 67 | | |
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| 68 | 68 | | (5) Professional liability and errors and omissions insurance that includes an endorsement for contractual liability, with minimum coverage amounts of one million dollars ($1,000,000) per occurrence and two million dollars ($2,000,000) aggregate. The contract shall include an endorsement for defense and indemnification of the government entity with which the licensee has contracted. |
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| 69 | 69 | | |
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| 70 | 70 | | (b) Any A government entity that contracts with an alcoholism or drug abuse recovery or treatment facility to provide treatment services for six or fewer residents, shall require the contractor, at all times, to maintain general liability insurance coverages, which shall include the government entity as an additional insured. |
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| 71 | 71 | | |
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| 72 | 72 | | (c) (1) A privately owned recovery residence that contracts with a government entity may meet the insurance requirements of this section by procuring coverage from an admitted insurer, or a nonadmitted insurer that is eligible to insure a home state insured under Chapter 6 (commencing with Section 1760) of Part 2 of Division 1 of the Insurance Code. |
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| 73 | 73 | | |
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| 74 | 74 | | (2) Notwithstanding paragraph (1), the workers compensation insurance required by this section shall be obtained as required by Section 3700 of the Labor Code. |
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| 75 | 75 | | |
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| 76 | 76 | | (d) This section does not prohibit a government entity from requiring quality and performance standards or levels of insurance coverage that are similar to, or that exceed, the standards and levels described in this section when contracting for recovery residence services. |
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| 77 | 77 | | |
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| 78 | 78 | | (e) For the purposes of this section, the following terms have the following meanings: |
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| 79 | 79 | | |
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| 80 | 80 | | (1) Alcoholism or drug abuse recovery or treatment facility has the same meaning as in Section 11834.02. |
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| 82 | 82 | | (2) Government entity means the state, a county, or a city. |
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| 83 | 83 | | |
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| 84 | 84 | | (3) Recovery residence has the same meaning as in Section 11833.05. |
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| 85 | 85 | | |
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| 86 | 86 | | (f) This section shall apply to contracts entered into, renewed, or amended on or after January 1, 2022. |
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