Amended IN Senate April 01, 2025 Amended IN Senate March 06, 2025 Amended IN Senate February 25, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 43Introduced by Senator UmbergDecember 05, 2024An act to amend Section 11833.05 of, and to add Chapter 7.45 (commencing with Section 11833.06) to Part 2 of Division 10.5 of, the Health and Safety Code, relating to substance use disorder.LEGISLATIVE COUNSEL'S DIGESTSB 43, as amended, Umberg. Substance use disorder: certified programs and licensed facilities.Existing law requires the State Department of Health Care Services to regulate and certify alcohol or other drug programs, as defined. Existing law also requires the department to regulate and license adult alcohol or other drug recovery or treatment facilities, and requires a licensee to provide specified nonmedical services. Existing law requires all programs certified and facilities licensed by the department to make specified disclosures to the department regarding, among other things, ownership or control of, or financial interest in, a recovery residence, as defined. This bill, in addition to existing disclosure requirements, would require all programs certified and all facilities licensed, no later than July 15, 2026, and annually each July 15 thereafter, to submit to the department a report of all money transfers between the program or facility and a recovery residence during the previous fiscal year.Existing law prohibits a licensed facility, a certified program, or other specified persons, programs, and entities from giving or receiving remuneration or anything of value for the referral of a person who is seeking alcohol or other drug recovery or treatment services. Existing law generally prohibits referrals for remuneration to any skilled nursing home or other specified types of care facilities without first obtaining a written license from the Director of Public Health or from an inspection service approved by the director, as specified.This bill would require a person, association, or corporation, before establishing, conducting, or maintaining a referral agency or referring any person for remuneration to an alcoholism or drug abuse treatment program certified by or a facility licensed by the department to first obtain a license from the department, as specified. The bill would require the department to impose a fee for license application and renewal and would specify the information required to be included on the application. The bill, among other provisions, would prohibit a licensee from having a direct or indirect financial interest in a program or facility doing business with the licensee. The bill would not apply to a local public agency performing referral services without cost to recipients of adult alcoholism or drug abuse recovery or treatment services when otherwise authorized by law. TheThis bill would make it unlawful for a referral agency to participate in or operate a group advertising and referral service for addiction treatment services unless specified conditions are met. The bill would authorize the department or 5 or more individual or member programs to petition the superior court of any county for the issuance of an injunction restraining conduct that is a violation of that provision. The bill would make it a misdemeanor for any individual, association, partnership, corporation, or otherwise to operate a group advertising and referral service without providing its name and address to the department. By creating new crimes, the bill would impose a state-mandated local program. This bill would authorize the department to suspend or revoke the license of a program or facility that fails to comply with the provisions of the bill, and to impose a civil penalty, as specified. The bill also would authorize the department to impose a civil penalty against a person, association, or corporation referring persons without a license in violation of the bill, in the amount of the remuneration illegally received, as specified.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.This bill would make legislative findings to that effect.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOYES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 11833.05 of the Health and Safety Code is amended to read:11833.05. (a) A program certified by the department pursuant to Chapter 7.1 (commencing with Section 11832) or a facility licensed by the department pursuant to Chapter 7.5 (commencing with Section 11834.01) shall disclose to the department if any of its agents, partners, directors, officers, or owners, including a sole proprietor and member, has either of the following:(1) Ownership or control of, or financial interest in, a recovery residence.(2) Any contractual relationship with an entity that regularly provides professional services or substance use disorder treatment or recovery services to clients of programs certified or facilities licensed by the department, if the entity is not part of the program certified or facility licensed by the department.(b) All programs certified or facilities licensed by the department shall make the disclosures pursuant to subdivision (a) upon initial licensure or certification, upon renewal of licensure or certification, and upon a licensed facility or certified program acquiring or starting a relationship that meets the description in paragraph (1) or (2) of subdivision (a).(c) The department may suspend or revoke the certification of a program or license of a facility for failing to disclose the information required in subdivision (a).(d) The department shall take action pursuant to Section 11834.31 against an unlicensed facility that is disclosed as a recovery residence pursuant to paragraph (1) of subdivision (a). This subdivision does not require an investigation of a recovery residence that is not alleged to be operating in violation of Section 11834.30.(e) The department may refer a substantiated complaint against a recovery residence to other enforcement entities as appropriate under state or federal law, including the Department of Insurance, the Department of Managed Health Care, the Attorney General, and the United States Attorney General.(f) No later than July 15, 2026, and each July 15 thereafter, all programs certified or facilities licensed by the department shall submit to the department a report of all money transfers between the program or facility and a recovery residence during the previous fiscal year.(g) For the purposes of this section, recovery residence means 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 by the department or does not provide licensable services, pursuant to Chapter 7.5 (commencing with Section 11834.01). A recovery residence may include, but is not limited to, residential dwellings commonly referred to as sober living homes, sober living environments, or unlicensed alcohol and drug free residences.SEC. 2. Chapter 7.45 (commencing with Section 11833.06) is added to Part 2 of Division 10.5 of the Health and Safety Code, to read: CHAPTER 7.45. Referral Agencies Article 1. General Provisions11833.06. (a) It is unlawful for a person, association, or corporation to establish, conduct, or maintain a referral agency, or to refer a person for remuneration to a program certified by the department pursuant to Chapter 7.1 (commencing with Section 11832) or a facility licensed by the department pursuant to Chapter 7.5 (commencing with Section 11834.01) without first obtaining a written license therefor as provided in this chapter from the director.(b) As used in this chapter, referral agency means a private, profit, or nonprofit agency that is engaged in the business of referring persons for remuneration to a program or facility described in subdivision (a).11833.061. (a) An application for a license or renewal of license under this chapter shall be accompanied by an annual fee. Each license shall expire 12 months from its date of issuance and the application for renewal accompanied by the fee shall be filed with the director not later than 30 days prior to the date of expiration. The amount of the fee shall not exceed the reasonable regulatory cost of administering the licensing program.(b) A licensee shall not have a direct or indirect financial interest in a program or facility doing business with the licensee.(c) Separate licenses shall be required for referral agencies that are maintained on separate, noncontiguous premises.(d) A license issued under this chapter is not transferable.11833.062. A license application shall be submitted to the department when any of the following circumstances occurs:(a) Change of ownership of the referral agency.(b) Change of name of the referral agency.(c) Change of location of the referral agency.11833.063. A person, partnership, firm, corporation, or association desiring to obtain a license shall file with the department an application on forms furnished by the department. The application shall contain all of the following:(a) Name of the applicant and, if an individual, whether the applicant has attained 18 years of age.(b) Name of the referral agency.(c) The location of the referral agency.(d) The business or occupation engaged in by each applicant, and by each partner, officer, and director, for at least two years immediately preceding the filing of the application. In addition, each partner, officer, and director shall submit a statement setting forth whether they have previously engaged in the operation of a referral agency, whether they have been involved in, or the subject of, a refusal or revocation of a referral agency license, and whether they have been convicted of a crime other than a minor traffic offense.(e) If the applicant is a corporation, the name and principal business address of each officer and director of the corporation, and for nonpublic corporations, the name and business address of each stockholder owning 10 percent or more of the stock and the name and business address of any corporation member who has responsibility in the operation of the facility.(f) If the applicant is a partnership, the name and principal business address of each partner.(g) Evidence of the right to occupy the premises where the referral agency is to be located.(h) A copy of the partnership agreement or the articles of incorporation, if applicable.(i) A copy of the current organization chart.(j) A schedule of fees to be charged and collected by the referral agency and a statement of the method by which each fee is to be computed or determined.(k) A declaration that the licensee will not have any financial interest in any facility doing business with the referral agency.(l) Evidence satisfactory to the department that the applicant demonstrates reputable and responsible character and the capability to comply with this chapter.11833.064. This chapter does not apply to a local public agency performing referral services without cost to recipients of adult alcoholism or drug abuse recovery or treatment services when otherwise authorized by law.11833.065. (a) A licensee desiring to voluntarily surrender their license for cancellation or temporary suspension shall notify the department in writing as soon as possible and, in all cases, a minimum of 30 days before the effective date of cancellation or temporary suspension of the license.(b) A license placed in temporary suspension pursuant to this section may be reinstated by the department within 12 months of the date of the voluntary suspension upon receipt of an application and evidence of compliance with licensing requirements.11833.067. (a) Upon verification of compliance with this chapter and with the approval of the department, the department shall issue the license to the applicant.(b) If the applicant is not in compliance with this chapter, the department shall deny the applicant a license. Immediately upon the denial of a license, the department shall notify the applicant in writing. Within 20 days of receipt of the departments notice, the applicant may present their written petition for a hearing to the department. The proceedings shall be conducted in accordance with Section 100171.11833.068. The original license or true copy of the license shall be conspicuously posted in a prominent location accessible to public view.11833.069. (a) The licensee shall notify the department within 10 days in writing when a change of stockholder owning 10 percent or more of the nonpublic corporate stock occurs. The writing shall include the name and principal mailing addresses of the new stockholder.(b) When a change of agency manager occurs, the licensee shall notify the department in writing within 10 days of the change. The notification shall include the name of the new agency manager.(c) Each licensee shall notify the department in writing within 10 days of any change of the licensees mailing address. The writing shall include the licensees new mailing address.(d) When a change in the principal officer of a corporate licensee, chairperson, president, or general manager occurs, the licensee shall notify the department in writing within 10 days. The writing shall include the name and principal business address of the officer. Article 2. Penalties11833.070. The department may suspend or revoke a license issued under this chapter for a violation of any provision of the chapter or any regulation adopted by the department pursuant to this chapter. In addition, the department shall assess a civil penalty in the amount of fees received by a licensee as a result of a violation of any provision of the chapter or regulation. Proceedings to suspend or revoke a license shall be conducted pursuant to Section 100171.11833.071. A person, association, or corporation referring persons without a license in violation of Section 11833.06 shall be liable for a civil penalty in the amount of the remuneration illegally received, which shall be assessed and recovered in a civil action brought in the name of the people of the State of California by the Attorney General in any court of competent jurisdiction.11833.072. Civil penalties collected pursuant to this article shall be used to administer this chapter. Article 3. Group Advertising and Referral Services11833.073. (a) As used in this section, member program means a program certified by the department pursuant to Chapter 7.1 (commencing with Section 11832) or a facility licensed by the department pursuant to Chapter 7.5 (commencing with Section 11831.01) that has entered into a written agreement for group advertising and referral service with a referral agency or any entity that holds itself out as a provider of addiction treatment services.(b) It shall be unlawful for a referral agency licensed pursuant to this chapter to participate in or operate a group advertising and referral service for addiction treatment services unless all of the following conditions are met:(1) Patient referrals made by the referral agency are the result of patient-initiated responses to service advertising.(2) The referral agency advertises, if at all, in conformity with Section 651 of the Business and Professions Code.(3) The referral agency does not employ a solicitor.(4) The referral agency does not impose a fee on its member programs that is dependent upon the number of referrals or amount of professional fees paid by the patient to the referral agency or member program.(5) Member programs charge no more than their usual and customary fees to any patient referred.(6) The referral agency files with the department a copy of the standard form contract that regulates its relationship with member programs. The contract shall be kept confidential and is not open to public inspection.(7) If more than 50 percent of its referrals are made to 50 or fewer member programs, the referral agency discloses that fact in all public communications, including, but not limited to, communication by means of television, radio, motion picture, newspaper, book, internet, or list or directory.(c) The department may adopt regulations necessary to enforce and administer this section.(d) The department or five or more individual or member programs may petition the superior court of any county for the issuance of an injunction restraining conduct that constitutes a violation of this section.(e) It is unlawful and shall be punishable as a misdemeanor for any individual, association, partnership, corporation, or otherwise to operate a group advertising and referral service for addiction treatment without providing its name and address to the department.SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.SEC. 4. The Legislature finds and declares that Section 2 of this act, which adds Section 11833.073 to the Health and Safety Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:To ensure viable competition between referral agencies and to encourage a wide breadth of program participation, it is necessary to exempt these standard form contracts from public disclosure.
Amended IN Senate April 01, 2025 Amended IN Senate March 06, 2025 Amended IN Senate February 25, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 43Introduced by Senator UmbergDecember 05, 2024An act to amend Section 11833.05 of, and to add Chapter 7.45 (commencing with Section 11833.06) to Part 2 of Division 10.5 of, the Health and Safety Code, relating to substance use disorder.LEGISLATIVE COUNSEL'S DIGESTSB 43, as amended, Umberg. Substance use disorder: certified programs and licensed facilities.Existing law requires the State Department of Health Care Services to regulate and certify alcohol or other drug programs, as defined. Existing law also requires the department to regulate and license adult alcohol or other drug recovery or treatment facilities, and requires a licensee to provide specified nonmedical services. Existing law requires all programs certified and facilities licensed by the department to make specified disclosures to the department regarding, among other things, ownership or control of, or financial interest in, a recovery residence, as defined. This bill, in addition to existing disclosure requirements, would require all programs certified and all facilities licensed, no later than July 15, 2026, and annually each July 15 thereafter, to submit to the department a report of all money transfers between the program or facility and a recovery residence during the previous fiscal year.Existing law prohibits a licensed facility, a certified program, or other specified persons, programs, and entities from giving or receiving remuneration or anything of value for the referral of a person who is seeking alcohol or other drug recovery or treatment services. Existing law generally prohibits referrals for remuneration to any skilled nursing home or other specified types of care facilities without first obtaining a written license from the Director of Public Health or from an inspection service approved by the director, as specified.This bill would require a person, association, or corporation, before establishing, conducting, or maintaining a referral agency or referring any person for remuneration to an alcoholism or drug abuse treatment program certified by or a facility licensed by the department to first obtain a license from the department, as specified. The bill would require the department to impose a fee for license application and renewal and would specify the information required to be included on the application. The bill, among other provisions, would prohibit a licensee from having a direct or indirect financial interest in a program or facility doing business with the licensee. The bill would not apply to a local public agency performing referral services without cost to recipients of adult alcoholism or drug abuse recovery or treatment services when otherwise authorized by law. TheThis bill would make it unlawful for a referral agency to participate in or operate a group advertising and referral service for addiction treatment services unless specified conditions are met. The bill would authorize the department or 5 or more individual or member programs to petition the superior court of any county for the issuance of an injunction restraining conduct that is a violation of that provision. The bill would make it a misdemeanor for any individual, association, partnership, corporation, or otherwise to operate a group advertising and referral service without providing its name and address to the department. By creating new crimes, the bill would impose a state-mandated local program. This bill would authorize the department to suspend or revoke the license of a program or facility that fails to comply with the provisions of the bill, and to impose a civil penalty, as specified. The bill also would authorize the department to impose a civil penalty against a person, association, or corporation referring persons without a license in violation of the bill, in the amount of the remuneration illegally received, as specified.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.This bill would make legislative findings to that effect.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOYES
Amended IN Senate April 01, 2025 Amended IN Senate March 06, 2025 Amended IN Senate February 25, 2025
Amended IN Senate April 01, 2025
Amended IN Senate March 06, 2025
Amended IN Senate February 25, 2025
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Senate Bill
No. 43
Introduced by Senator UmbergDecember 05, 2024
Introduced by Senator Umberg
December 05, 2024
An act to amend Section 11833.05 of, and to add Chapter 7.45 (commencing with Section 11833.06) to Part 2 of Division 10.5 of, the Health and Safety Code, relating to substance use disorder.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 43, as amended, Umberg. Substance use disorder: certified programs and licensed facilities.
Existing law requires the State Department of Health Care Services to regulate and certify alcohol or other drug programs, as defined. Existing law also requires the department to regulate and license adult alcohol or other drug recovery or treatment facilities, and requires a licensee to provide specified nonmedical services. Existing law requires all programs certified and facilities licensed by the department to make specified disclosures to the department regarding, among other things, ownership or control of, or financial interest in, a recovery residence, as defined. This bill, in addition to existing disclosure requirements, would require all programs certified and all facilities licensed, no later than July 15, 2026, and annually each July 15 thereafter, to submit to the department a report of all money transfers between the program or facility and a recovery residence during the previous fiscal year.Existing law prohibits a licensed facility, a certified program, or other specified persons, programs, and entities from giving or receiving remuneration or anything of value for the referral of a person who is seeking alcohol or other drug recovery or treatment services. Existing law generally prohibits referrals for remuneration to any skilled nursing home or other specified types of care facilities without first obtaining a written license from the Director of Public Health or from an inspection service approved by the director, as specified.This bill would require a person, association, or corporation, before establishing, conducting, or maintaining a referral agency or referring any person for remuneration to an alcoholism or drug abuse treatment program certified by or a facility licensed by the department to first obtain a license from the department, as specified. The bill would require the department to impose a fee for license application and renewal and would specify the information required to be included on the application. The bill, among other provisions, would prohibit a licensee from having a direct or indirect financial interest in a program or facility doing business with the licensee. The bill would not apply to a local public agency performing referral services without cost to recipients of adult alcoholism or drug abuse recovery or treatment services when otherwise authorized by law. TheThis bill would make it unlawful for a referral agency to participate in or operate a group advertising and referral service for addiction treatment services unless specified conditions are met. The bill would authorize the department or 5 or more individual or member programs to petition the superior court of any county for the issuance of an injunction restraining conduct that is a violation of that provision. The bill would make it a misdemeanor for any individual, association, partnership, corporation, or otherwise to operate a group advertising and referral service without providing its name and address to the department. By creating new crimes, the bill would impose a state-mandated local program. This bill would authorize the department to suspend or revoke the license of a program or facility that fails to comply with the provisions of the bill, and to impose a civil penalty, as specified. The bill also would authorize the department to impose a civil penalty against a person, association, or corporation referring persons without a license in violation of the bill, in the amount of the remuneration illegally received, as specified.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.This bill would make legislative findings to that effect.
Existing law requires the State Department of Health Care Services to regulate and certify alcohol or other drug programs, as defined. Existing law also requires the department to regulate and license adult alcohol or other drug recovery or treatment facilities, and requires a licensee to provide specified nonmedical services. Existing law requires all programs certified and facilities licensed by the department to make specified disclosures to the department regarding, among other things, ownership or control of, or financial interest in, a recovery residence, as defined.
This bill, in addition to existing disclosure requirements, would require all programs certified and all facilities licensed, no later than July 15, 2026, and annually each July 15 thereafter, to submit to the department a report of all money transfers between the program or facility and a recovery residence during the previous fiscal year.
Existing law prohibits a licensed facility, a certified program, or other specified persons, programs, and entities from giving or receiving remuneration or anything of value for the referral of a person who is seeking alcohol or other drug recovery or treatment services. Existing law generally prohibits referrals for remuneration to any skilled nursing home or other specified types of care facilities without first obtaining a written license from the Director of Public Health or from an inspection service approved by the director, as specified.
This bill would require a person, association, or corporation, before establishing, conducting, or maintaining a referral agency or referring any person for remuneration to an alcoholism or drug abuse treatment program certified by or a facility licensed by the department to first obtain a license from the department, as specified. The bill would require the department to impose a fee for license application and renewal and would specify the information required to be included on the application. The bill, among other provisions, would prohibit a licensee from having a direct or indirect financial interest in a program or facility doing business with the licensee. The bill would not apply to a local public agency performing referral services without cost to recipients of adult alcoholism or drug abuse recovery or treatment services when otherwise authorized by law. The
This bill would make it unlawful for a referral agency to participate in or operate a group advertising and referral service for addiction treatment services unless specified conditions are met. The bill would authorize the department or 5 or more individual or member programs to petition the superior court of any county for the issuance of an injunction restraining conduct that is a violation of that provision. The bill would make it a misdemeanor for any individual, association, partnership, corporation, or otherwise to operate a group advertising and referral service without providing its name and address to the department. By creating new crimes, the bill would impose a state-mandated local program.
This bill would authorize the department to suspend or revoke the license of a program or facility that fails to comply with the provisions of the bill, and to impose a civil penalty, as specified. The bill also would authorize the department to impose a civil penalty against a person, association, or corporation referring persons without a license in violation of the bill, in the amount of the remuneration illegally received, as specified.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 11833.05 of the Health and Safety Code is amended to read:11833.05. (a) A program certified by the department pursuant to Chapter 7.1 (commencing with Section 11832) or a facility licensed by the department pursuant to Chapter 7.5 (commencing with Section 11834.01) shall disclose to the department if any of its agents, partners, directors, officers, or owners, including a sole proprietor and member, has either of the following:(1) Ownership or control of, or financial interest in, a recovery residence.(2) Any contractual relationship with an entity that regularly provides professional services or substance use disorder treatment or recovery services to clients of programs certified or facilities licensed by the department, if the entity is not part of the program certified or facility licensed by the department.(b) All programs certified or facilities licensed by the department shall make the disclosures pursuant to subdivision (a) upon initial licensure or certification, upon renewal of licensure or certification, and upon a licensed facility or certified program acquiring or starting a relationship that meets the description in paragraph (1) or (2) of subdivision (a).(c) The department may suspend or revoke the certification of a program or license of a facility for failing to disclose the information required in subdivision (a).(d) The department shall take action pursuant to Section 11834.31 against an unlicensed facility that is disclosed as a recovery residence pursuant to paragraph (1) of subdivision (a). This subdivision does not require an investigation of a recovery residence that is not alleged to be operating in violation of Section 11834.30.(e) The department may refer a substantiated complaint against a recovery residence to other enforcement entities as appropriate under state or federal law, including the Department of Insurance, the Department of Managed Health Care, the Attorney General, and the United States Attorney General.(f) No later than July 15, 2026, and each July 15 thereafter, all programs certified or facilities licensed by the department shall submit to the department a report of all money transfers between the program or facility and a recovery residence during the previous fiscal year.(g) For the purposes of this section, recovery residence means 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 by the department or does not provide licensable services, pursuant to Chapter 7.5 (commencing with Section 11834.01). A recovery residence may include, but is not limited to, residential dwellings commonly referred to as sober living homes, sober living environments, or unlicensed alcohol and drug free residences.SEC. 2. Chapter 7.45 (commencing with Section 11833.06) is added to Part 2 of Division 10.5 of the Health and Safety Code, to read: CHAPTER 7.45. Referral Agencies Article 1. General Provisions11833.06. (a) It is unlawful for a person, association, or corporation to establish, conduct, or maintain a referral agency, or to refer a person for remuneration to a program certified by the department pursuant to Chapter 7.1 (commencing with Section 11832) or a facility licensed by the department pursuant to Chapter 7.5 (commencing with Section 11834.01) without first obtaining a written license therefor as provided in this chapter from the director.(b) As used in this chapter, referral agency means a private, profit, or nonprofit agency that is engaged in the business of referring persons for remuneration to a program or facility described in subdivision (a).11833.061. (a) An application for a license or renewal of license under this chapter shall be accompanied by an annual fee. Each license shall expire 12 months from its date of issuance and the application for renewal accompanied by the fee shall be filed with the director not later than 30 days prior to the date of expiration. The amount of the fee shall not exceed the reasonable regulatory cost of administering the licensing program.(b) A licensee shall not have a direct or indirect financial interest in a program or facility doing business with the licensee.(c) Separate licenses shall be required for referral agencies that are maintained on separate, noncontiguous premises.(d) A license issued under this chapter is not transferable.11833.062. A license application shall be submitted to the department when any of the following circumstances occurs:(a) Change of ownership of the referral agency.(b) Change of name of the referral agency.(c) Change of location of the referral agency.11833.063. A person, partnership, firm, corporation, or association desiring to obtain a license shall file with the department an application on forms furnished by the department. The application shall contain all of the following:(a) Name of the applicant and, if an individual, whether the applicant has attained 18 years of age.(b) Name of the referral agency.(c) The location of the referral agency.(d) The business or occupation engaged in by each applicant, and by each partner, officer, and director, for at least two years immediately preceding the filing of the application. In addition, each partner, officer, and director shall submit a statement setting forth whether they have previously engaged in the operation of a referral agency, whether they have been involved in, or the subject of, a refusal or revocation of a referral agency license, and whether they have been convicted of a crime other than a minor traffic offense.(e) If the applicant is a corporation, the name and principal business address of each officer and director of the corporation, and for nonpublic corporations, the name and business address of each stockholder owning 10 percent or more of the stock and the name and business address of any corporation member who has responsibility in the operation of the facility.(f) If the applicant is a partnership, the name and principal business address of each partner.(g) Evidence of the right to occupy the premises where the referral agency is to be located.(h) A copy of the partnership agreement or the articles of incorporation, if applicable.(i) A copy of the current organization chart.(j) A schedule of fees to be charged and collected by the referral agency and a statement of the method by which each fee is to be computed or determined.(k) A declaration that the licensee will not have any financial interest in any facility doing business with the referral agency.(l) Evidence satisfactory to the department that the applicant demonstrates reputable and responsible character and the capability to comply with this chapter.11833.064. This chapter does not apply to a local public agency performing referral services without cost to recipients of adult alcoholism or drug abuse recovery or treatment services when otherwise authorized by law.11833.065. (a) A licensee desiring to voluntarily surrender their license for cancellation or temporary suspension shall notify the department in writing as soon as possible and, in all cases, a minimum of 30 days before the effective date of cancellation or temporary suspension of the license.(b) A license placed in temporary suspension pursuant to this section may be reinstated by the department within 12 months of the date of the voluntary suspension upon receipt of an application and evidence of compliance with licensing requirements.11833.067. (a) Upon verification of compliance with this chapter and with the approval of the department, the department shall issue the license to the applicant.(b) If the applicant is not in compliance with this chapter, the department shall deny the applicant a license. Immediately upon the denial of a license, the department shall notify the applicant in writing. Within 20 days of receipt of the departments notice, the applicant may present their written petition for a hearing to the department. The proceedings shall be conducted in accordance with Section 100171.11833.068. The original license or true copy of the license shall be conspicuously posted in a prominent location accessible to public view.11833.069. (a) The licensee shall notify the department within 10 days in writing when a change of stockholder owning 10 percent or more of the nonpublic corporate stock occurs. The writing shall include the name and principal mailing addresses of the new stockholder.(b) When a change of agency manager occurs, the licensee shall notify the department in writing within 10 days of the change. The notification shall include the name of the new agency manager.(c) Each licensee shall notify the department in writing within 10 days of any change of the licensees mailing address. The writing shall include the licensees new mailing address.(d) When a change in the principal officer of a corporate licensee, chairperson, president, or general manager occurs, the licensee shall notify the department in writing within 10 days. The writing shall include the name and principal business address of the officer. Article 2. Penalties11833.070. The department may suspend or revoke a license issued under this chapter for a violation of any provision of the chapter or any regulation adopted by the department pursuant to this chapter. In addition, the department shall assess a civil penalty in the amount of fees received by a licensee as a result of a violation of any provision of the chapter or regulation. Proceedings to suspend or revoke a license shall be conducted pursuant to Section 100171.11833.071. A person, association, or corporation referring persons without a license in violation of Section 11833.06 shall be liable for a civil penalty in the amount of the remuneration illegally received, which shall be assessed and recovered in a civil action brought in the name of the people of the State of California by the Attorney General in any court of competent jurisdiction.11833.072. Civil penalties collected pursuant to this article shall be used to administer this chapter. Article 3. Group Advertising and Referral Services11833.073. (a) As used in this section, member program means a program certified by the department pursuant to Chapter 7.1 (commencing with Section 11832) or a facility licensed by the department pursuant to Chapter 7.5 (commencing with Section 11831.01) that has entered into a written agreement for group advertising and referral service with a referral agency or any entity that holds itself out as a provider of addiction treatment services.(b) It shall be unlawful for a referral agency licensed pursuant to this chapter to participate in or operate a group advertising and referral service for addiction treatment services unless all of the following conditions are met:(1) Patient referrals made by the referral agency are the result of patient-initiated responses to service advertising.(2) The referral agency advertises, if at all, in conformity with Section 651 of the Business and Professions Code.(3) The referral agency does not employ a solicitor.(4) The referral agency does not impose a fee on its member programs that is dependent upon the number of referrals or amount of professional fees paid by the patient to the referral agency or member program.(5) Member programs charge no more than their usual and customary fees to any patient referred.(6) The referral agency files with the department a copy of the standard form contract that regulates its relationship with member programs. The contract shall be kept confidential and is not open to public inspection.(7) If more than 50 percent of its referrals are made to 50 or fewer member programs, the referral agency discloses that fact in all public communications, including, but not limited to, communication by means of television, radio, motion picture, newspaper, book, internet, or list or directory.(c) The department may adopt regulations necessary to enforce and administer this section.(d) The department or five or more individual or member programs may petition the superior court of any county for the issuance of an injunction restraining conduct that constitutes a violation of this section.(e) It is unlawful and shall be punishable as a misdemeanor for any individual, association, partnership, corporation, or otherwise to operate a group advertising and referral service for addiction treatment without providing its name and address to the department.SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.SEC. 4. The Legislature finds and declares that Section 2 of this act, which adds Section 11833.073 to the Health and Safety Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:To ensure viable competition between referral agencies and to encourage a wide breadth of program participation, it is necessary to exempt these standard form contracts from public disclosure.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 11833.05 of the Health and Safety Code is amended to read:11833.05. (a) A program certified by the department pursuant to Chapter 7.1 (commencing with Section 11832) or a facility licensed by the department pursuant to Chapter 7.5 (commencing with Section 11834.01) shall disclose to the department if any of its agents, partners, directors, officers, or owners, including a sole proprietor and member, has either of the following:(1) Ownership or control of, or financial interest in, a recovery residence.(2) Any contractual relationship with an entity that regularly provides professional services or substance use disorder treatment or recovery services to clients of programs certified or facilities licensed by the department, if the entity is not part of the program certified or facility licensed by the department.(b) All programs certified or facilities licensed by the department shall make the disclosures pursuant to subdivision (a) upon initial licensure or certification, upon renewal of licensure or certification, and upon a licensed facility or certified program acquiring or starting a relationship that meets the description in paragraph (1) or (2) of subdivision (a).(c) The department may suspend or revoke the certification of a program or license of a facility for failing to disclose the information required in subdivision (a).(d) The department shall take action pursuant to Section 11834.31 against an unlicensed facility that is disclosed as a recovery residence pursuant to paragraph (1) of subdivision (a). This subdivision does not require an investigation of a recovery residence that is not alleged to be operating in violation of Section 11834.30.(e) The department may refer a substantiated complaint against a recovery residence to other enforcement entities as appropriate under state or federal law, including the Department of Insurance, the Department of Managed Health Care, the Attorney General, and the United States Attorney General.(f) No later than July 15, 2026, and each July 15 thereafter, all programs certified or facilities licensed by the department shall submit to the department a report of all money transfers between the program or facility and a recovery residence during the previous fiscal year.(g) For the purposes of this section, recovery residence means 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 by the department or does not provide licensable services, pursuant to Chapter 7.5 (commencing with Section 11834.01). A recovery residence may include, but is not limited to, residential dwellings commonly referred to as sober living homes, sober living environments, or unlicensed alcohol and drug free residences.
SECTION 1. Section 11833.05 of the Health and Safety Code is amended to read:
### SECTION 1.
11833.05. (a) A program certified by the department pursuant to Chapter 7.1 (commencing with Section 11832) or a facility licensed by the department pursuant to Chapter 7.5 (commencing with Section 11834.01) shall disclose to the department if any of its agents, partners, directors, officers, or owners, including a sole proprietor and member, has either of the following:(1) Ownership or control of, or financial interest in, a recovery residence.(2) Any contractual relationship with an entity that regularly provides professional services or substance use disorder treatment or recovery services to clients of programs certified or facilities licensed by the department, if the entity is not part of the program certified or facility licensed by the department.(b) All programs certified or facilities licensed by the department shall make the disclosures pursuant to subdivision (a) upon initial licensure or certification, upon renewal of licensure or certification, and upon a licensed facility or certified program acquiring or starting a relationship that meets the description in paragraph (1) or (2) of subdivision (a).(c) The department may suspend or revoke the certification of a program or license of a facility for failing to disclose the information required in subdivision (a).(d) The department shall take action pursuant to Section 11834.31 against an unlicensed facility that is disclosed as a recovery residence pursuant to paragraph (1) of subdivision (a). This subdivision does not require an investigation of a recovery residence that is not alleged to be operating in violation of Section 11834.30.(e) The department may refer a substantiated complaint against a recovery residence to other enforcement entities as appropriate under state or federal law, including the Department of Insurance, the Department of Managed Health Care, the Attorney General, and the United States Attorney General.(f) No later than July 15, 2026, and each July 15 thereafter, all programs certified or facilities licensed by the department shall submit to the department a report of all money transfers between the program or facility and a recovery residence during the previous fiscal year.(g) For the purposes of this section, recovery residence means 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 by the department or does not provide licensable services, pursuant to Chapter 7.5 (commencing with Section 11834.01). A recovery residence may include, but is not limited to, residential dwellings commonly referred to as sober living homes, sober living environments, or unlicensed alcohol and drug free residences.
11833.05. (a) A program certified by the department pursuant to Chapter 7.1 (commencing with Section 11832) or a facility licensed by the department pursuant to Chapter 7.5 (commencing with Section 11834.01) shall disclose to the department if any of its agents, partners, directors, officers, or owners, including a sole proprietor and member, has either of the following:(1) Ownership or control of, or financial interest in, a recovery residence.(2) Any contractual relationship with an entity that regularly provides professional services or substance use disorder treatment or recovery services to clients of programs certified or facilities licensed by the department, if the entity is not part of the program certified or facility licensed by the department.(b) All programs certified or facilities licensed by the department shall make the disclosures pursuant to subdivision (a) upon initial licensure or certification, upon renewal of licensure or certification, and upon a licensed facility or certified program acquiring or starting a relationship that meets the description in paragraph (1) or (2) of subdivision (a).(c) The department may suspend or revoke the certification of a program or license of a facility for failing to disclose the information required in subdivision (a).(d) The department shall take action pursuant to Section 11834.31 against an unlicensed facility that is disclosed as a recovery residence pursuant to paragraph (1) of subdivision (a). This subdivision does not require an investigation of a recovery residence that is not alleged to be operating in violation of Section 11834.30.(e) The department may refer a substantiated complaint against a recovery residence to other enforcement entities as appropriate under state or federal law, including the Department of Insurance, the Department of Managed Health Care, the Attorney General, and the United States Attorney General.(f) No later than July 15, 2026, and each July 15 thereafter, all programs certified or facilities licensed by the department shall submit to the department a report of all money transfers between the program or facility and a recovery residence during the previous fiscal year.(g) For the purposes of this section, recovery residence means 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 by the department or does not provide licensable services, pursuant to Chapter 7.5 (commencing with Section 11834.01). A recovery residence may include, but is not limited to, residential dwellings commonly referred to as sober living homes, sober living environments, or unlicensed alcohol and drug free residences.
11833.05. (a) A program certified by the department pursuant to Chapter 7.1 (commencing with Section 11832) or a facility licensed by the department pursuant to Chapter 7.5 (commencing with Section 11834.01) shall disclose to the department if any of its agents, partners, directors, officers, or owners, including a sole proprietor and member, has either of the following:(1) Ownership or control of, or financial interest in, a recovery residence.(2) Any contractual relationship with an entity that regularly provides professional services or substance use disorder treatment or recovery services to clients of programs certified or facilities licensed by the department, if the entity is not part of the program certified or facility licensed by the department.(b) All programs certified or facilities licensed by the department shall make the disclosures pursuant to subdivision (a) upon initial licensure or certification, upon renewal of licensure or certification, and upon a licensed facility or certified program acquiring or starting a relationship that meets the description in paragraph (1) or (2) of subdivision (a).(c) The department may suspend or revoke the certification of a program or license of a facility for failing to disclose the information required in subdivision (a).(d) The department shall take action pursuant to Section 11834.31 against an unlicensed facility that is disclosed as a recovery residence pursuant to paragraph (1) of subdivision (a). This subdivision does not require an investigation of a recovery residence that is not alleged to be operating in violation of Section 11834.30.(e) The department may refer a substantiated complaint against a recovery residence to other enforcement entities as appropriate under state or federal law, including the Department of Insurance, the Department of Managed Health Care, the Attorney General, and the United States Attorney General.(f) No later than July 15, 2026, and each July 15 thereafter, all programs certified or facilities licensed by the department shall submit to the department a report of all money transfers between the program or facility and a recovery residence during the previous fiscal year.(g) For the purposes of this section, recovery residence means 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 by the department or does not provide licensable services, pursuant to Chapter 7.5 (commencing with Section 11834.01). A recovery residence may include, but is not limited to, residential dwellings commonly referred to as sober living homes, sober living environments, or unlicensed alcohol and drug free residences.
11833.05. (a) A program certified by the department pursuant to Chapter 7.1 (commencing with Section 11832) or a facility licensed by the department pursuant to Chapter 7.5 (commencing with Section 11834.01) shall disclose to the department if any of its agents, partners, directors, officers, or owners, including a sole proprietor and member, has either of the following:
(1) Ownership or control of, or financial interest in, a recovery residence.
(2) Any contractual relationship with an entity that regularly provides professional services or substance use disorder treatment or recovery services to clients of programs certified or facilities licensed by the department, if the entity is not part of the program certified or facility licensed by the department.
(b) All programs certified or facilities licensed by the department shall make the disclosures pursuant to subdivision (a) upon initial licensure or certification, upon renewal of licensure or certification, and upon a licensed facility or certified program acquiring or starting a relationship that meets the description in paragraph (1) or (2) of subdivision (a).
(c) The department may suspend or revoke the certification of a program or license of a facility for failing to disclose the information required in subdivision (a).
(d) The department shall take action pursuant to Section 11834.31 against an unlicensed facility that is disclosed as a recovery residence pursuant to paragraph (1) of subdivision (a). This subdivision does not require an investigation of a recovery residence that is not alleged to be operating in violation of Section 11834.30.
(e) The department may refer a substantiated complaint against a recovery residence to other enforcement entities as appropriate under state or federal law, including the Department of Insurance, the Department of Managed Health Care, the Attorney General, and the United States Attorney General.
(f) No later than July 15, 2026, and each July 15 thereafter, all programs certified or facilities licensed by the department shall submit to the department a report of all money transfers between the program or facility and a recovery residence during the previous fiscal year.
(g) For the purposes of this section, recovery residence means 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 by the department or does not provide licensable services, pursuant to Chapter 7.5 (commencing with Section 11834.01). A recovery residence may include, but is not limited to, residential dwellings commonly referred to as sober living homes, sober living environments, or unlicensed alcohol and drug free residences.
SEC. 2. Chapter 7.45 (commencing with Section 11833.06) is added to Part 2 of Division 10.5 of the Health and Safety Code, to read: CHAPTER 7.45. Referral Agencies Article 1. General Provisions11833.06. (a) It is unlawful for a person, association, or corporation to establish, conduct, or maintain a referral agency, or to refer a person for remuneration to a program certified by the department pursuant to Chapter 7.1 (commencing with Section 11832) or a facility licensed by the department pursuant to Chapter 7.5 (commencing with Section 11834.01) without first obtaining a written license therefor as provided in this chapter from the director.(b) As used in this chapter, referral agency means a private, profit, or nonprofit agency that is engaged in the business of referring persons for remuneration to a program or facility described in subdivision (a).11833.061. (a) An application for a license or renewal of license under this chapter shall be accompanied by an annual fee. Each license shall expire 12 months from its date of issuance and the application for renewal accompanied by the fee shall be filed with the director not later than 30 days prior to the date of expiration. The amount of the fee shall not exceed the reasonable regulatory cost of administering the licensing program.(b) A licensee shall not have a direct or indirect financial interest in a program or facility doing business with the licensee.(c) Separate licenses shall be required for referral agencies that are maintained on separate, noncontiguous premises.(d) A license issued under this chapter is not transferable.11833.062. A license application shall be submitted to the department when any of the following circumstances occurs:(a) Change of ownership of the referral agency.(b) Change of name of the referral agency.(c) Change of location of the referral agency.11833.063. A person, partnership, firm, corporation, or association desiring to obtain a license shall file with the department an application on forms furnished by the department. The application shall contain all of the following:(a) Name of the applicant and, if an individual, whether the applicant has attained 18 years of age.(b) Name of the referral agency.(c) The location of the referral agency.(d) The business or occupation engaged in by each applicant, and by each partner, officer, and director, for at least two years immediately preceding the filing of the application. In addition, each partner, officer, and director shall submit a statement setting forth whether they have previously engaged in the operation of a referral agency, whether they have been involved in, or the subject of, a refusal or revocation of a referral agency license, and whether they have been convicted of a crime other than a minor traffic offense.(e) If the applicant is a corporation, the name and principal business address of each officer and director of the corporation, and for nonpublic corporations, the name and business address of each stockholder owning 10 percent or more of the stock and the name and business address of any corporation member who has responsibility in the operation of the facility.(f) If the applicant is a partnership, the name and principal business address of each partner.(g) Evidence of the right to occupy the premises where the referral agency is to be located.(h) A copy of the partnership agreement or the articles of incorporation, if applicable.(i) A copy of the current organization chart.(j) A schedule of fees to be charged and collected by the referral agency and a statement of the method by which each fee is to be computed or determined.(k) A declaration that the licensee will not have any financial interest in any facility doing business with the referral agency.(l) Evidence satisfactory to the department that the applicant demonstrates reputable and responsible character and the capability to comply with this chapter.11833.064. This chapter does not apply to a local public agency performing referral services without cost to recipients of adult alcoholism or drug abuse recovery or treatment services when otherwise authorized by law.11833.065. (a) A licensee desiring to voluntarily surrender their license for cancellation or temporary suspension shall notify the department in writing as soon as possible and, in all cases, a minimum of 30 days before the effective date of cancellation or temporary suspension of the license.(b) A license placed in temporary suspension pursuant to this section may be reinstated by the department within 12 months of the date of the voluntary suspension upon receipt of an application and evidence of compliance with licensing requirements.11833.067. (a) Upon verification of compliance with this chapter and with the approval of the department, the department shall issue the license to the applicant.(b) If the applicant is not in compliance with this chapter, the department shall deny the applicant a license. Immediately upon the denial of a license, the department shall notify the applicant in writing. Within 20 days of receipt of the departments notice, the applicant may present their written petition for a hearing to the department. The proceedings shall be conducted in accordance with Section 100171.11833.068. The original license or true copy of the license shall be conspicuously posted in a prominent location accessible to public view.11833.069. (a) The licensee shall notify the department within 10 days in writing when a change of stockholder owning 10 percent or more of the nonpublic corporate stock occurs. The writing shall include the name and principal mailing addresses of the new stockholder.(b) When a change of agency manager occurs, the licensee shall notify the department in writing within 10 days of the change. The notification shall include the name of the new agency manager.(c) Each licensee shall notify the department in writing within 10 days of any change of the licensees mailing address. The writing shall include the licensees new mailing address.(d) When a change in the principal officer of a corporate licensee, chairperson, president, or general manager occurs, the licensee shall notify the department in writing within 10 days. The writing shall include the name and principal business address of the officer. Article 2. Penalties11833.070. The department may suspend or revoke a license issued under this chapter for a violation of any provision of the chapter or any regulation adopted by the department pursuant to this chapter. In addition, the department shall assess a civil penalty in the amount of fees received by a licensee as a result of a violation of any provision of the chapter or regulation. Proceedings to suspend or revoke a license shall be conducted pursuant to Section 100171.11833.071. A person, association, or corporation referring persons without a license in violation of Section 11833.06 shall be liable for a civil penalty in the amount of the remuneration illegally received, which shall be assessed and recovered in a civil action brought in the name of the people of the State of California by the Attorney General in any court of competent jurisdiction.11833.072. Civil penalties collected pursuant to this article shall be used to administer this chapter. Article 3. Group Advertising and Referral Services11833.073. (a) As used in this section, member program means a program certified by the department pursuant to Chapter 7.1 (commencing with Section 11832) or a facility licensed by the department pursuant to Chapter 7.5 (commencing with Section 11831.01) that has entered into a written agreement for group advertising and referral service with a referral agency or any entity that holds itself out as a provider of addiction treatment services.(b) It shall be unlawful for a referral agency licensed pursuant to this chapter to participate in or operate a group advertising and referral service for addiction treatment services unless all of the following conditions are met:(1) Patient referrals made by the referral agency are the result of patient-initiated responses to service advertising.(2) The referral agency advertises, if at all, in conformity with Section 651 of the Business and Professions Code.(3) The referral agency does not employ a solicitor.(4) The referral agency does not impose a fee on its member programs that is dependent upon the number of referrals or amount of professional fees paid by the patient to the referral agency or member program.(5) Member programs charge no more than their usual and customary fees to any patient referred.(6) The referral agency files with the department a copy of the standard form contract that regulates its relationship with member programs. The contract shall be kept confidential and is not open to public inspection.(7) If more than 50 percent of its referrals are made to 50 or fewer member programs, the referral agency discloses that fact in all public communications, including, but not limited to, communication by means of television, radio, motion picture, newspaper, book, internet, or list or directory.(c) The department may adopt regulations necessary to enforce and administer this section.(d) The department or five or more individual or member programs may petition the superior court of any county for the issuance of an injunction restraining conduct that constitutes a violation of this section.(e) It is unlawful and shall be punishable as a misdemeanor for any individual, association, partnership, corporation, or otherwise to operate a group advertising and referral service for addiction treatment without providing its name and address to the department.
SEC. 2. Chapter 7.45 (commencing with Section 11833.06) is added to Part 2 of Division 10.5 of the Health and Safety Code, to read:
### SEC. 2.
CHAPTER 7.45. Referral Agencies Article 1. General Provisions11833.06. (a) It is unlawful for a person, association, or corporation to establish, conduct, or maintain a referral agency, or to refer a person for remuneration to a program certified by the department pursuant to Chapter 7.1 (commencing with Section 11832) or a facility licensed by the department pursuant to Chapter 7.5 (commencing with Section 11834.01) without first obtaining a written license therefor as provided in this chapter from the director.(b) As used in this chapter, referral agency means a private, profit, or nonprofit agency that is engaged in the business of referring persons for remuneration to a program or facility described in subdivision (a).11833.061. (a) An application for a license or renewal of license under this chapter shall be accompanied by an annual fee. Each license shall expire 12 months from its date of issuance and the application for renewal accompanied by the fee shall be filed with the director not later than 30 days prior to the date of expiration. The amount of the fee shall not exceed the reasonable regulatory cost of administering the licensing program.(b) A licensee shall not have a direct or indirect financial interest in a program or facility doing business with the licensee.(c) Separate licenses shall be required for referral agencies that are maintained on separate, noncontiguous premises.(d) A license issued under this chapter is not transferable.11833.062. A license application shall be submitted to the department when any of the following circumstances occurs:(a) Change of ownership of the referral agency.(b) Change of name of the referral agency.(c) Change of location of the referral agency.11833.063. A person, partnership, firm, corporation, or association desiring to obtain a license shall file with the department an application on forms furnished by the department. The application shall contain all of the following:(a) Name of the applicant and, if an individual, whether the applicant has attained 18 years of age.(b) Name of the referral agency.(c) The location of the referral agency.(d) The business or occupation engaged in by each applicant, and by each partner, officer, and director, for at least two years immediately preceding the filing of the application. In addition, each partner, officer, and director shall submit a statement setting forth whether they have previously engaged in the operation of a referral agency, whether they have been involved in, or the subject of, a refusal or revocation of a referral agency license, and whether they have been convicted of a crime other than a minor traffic offense.(e) If the applicant is a corporation, the name and principal business address of each officer and director of the corporation, and for nonpublic corporations, the name and business address of each stockholder owning 10 percent or more of the stock and the name and business address of any corporation member who has responsibility in the operation of the facility.(f) If the applicant is a partnership, the name and principal business address of each partner.(g) Evidence of the right to occupy the premises where the referral agency is to be located.(h) A copy of the partnership agreement or the articles of incorporation, if applicable.(i) A copy of the current organization chart.(j) A schedule of fees to be charged and collected by the referral agency and a statement of the method by which each fee is to be computed or determined.(k) A declaration that the licensee will not have any financial interest in any facility doing business with the referral agency.(l) Evidence satisfactory to the department that the applicant demonstrates reputable and responsible character and the capability to comply with this chapter.11833.064. This chapter does not apply to a local public agency performing referral services without cost to recipients of adult alcoholism or drug abuse recovery or treatment services when otherwise authorized by law.11833.065. (a) A licensee desiring to voluntarily surrender their license for cancellation or temporary suspension shall notify the department in writing as soon as possible and, in all cases, a minimum of 30 days before the effective date of cancellation or temporary suspension of the license.(b) A license placed in temporary suspension pursuant to this section may be reinstated by the department within 12 months of the date of the voluntary suspension upon receipt of an application and evidence of compliance with licensing requirements.11833.067. (a) Upon verification of compliance with this chapter and with the approval of the department, the department shall issue the license to the applicant.(b) If the applicant is not in compliance with this chapter, the department shall deny the applicant a license. Immediately upon the denial of a license, the department shall notify the applicant in writing. Within 20 days of receipt of the departments notice, the applicant may present their written petition for a hearing to the department. The proceedings shall be conducted in accordance with Section 100171.11833.068. The original license or true copy of the license shall be conspicuously posted in a prominent location accessible to public view.11833.069. (a) The licensee shall notify the department within 10 days in writing when a change of stockholder owning 10 percent or more of the nonpublic corporate stock occurs. The writing shall include the name and principal mailing addresses of the new stockholder.(b) When a change of agency manager occurs, the licensee shall notify the department in writing within 10 days of the change. The notification shall include the name of the new agency manager.(c) Each licensee shall notify the department in writing within 10 days of any change of the licensees mailing address. The writing shall include the licensees new mailing address.(d) When a change in the principal officer of a corporate licensee, chairperson, president, or general manager occurs, the licensee shall notify the department in writing within 10 days. The writing shall include the name and principal business address of the officer. Article 2. Penalties11833.070. The department may suspend or revoke a license issued under this chapter for a violation of any provision of the chapter or any regulation adopted by the department pursuant to this chapter. In addition, the department shall assess a civil penalty in the amount of fees received by a licensee as a result of a violation of any provision of the chapter or regulation. Proceedings to suspend or revoke a license shall be conducted pursuant to Section 100171.11833.071. A person, association, or corporation referring persons without a license in violation of Section 11833.06 shall be liable for a civil penalty in the amount of the remuneration illegally received, which shall be assessed and recovered in a civil action brought in the name of the people of the State of California by the Attorney General in any court of competent jurisdiction.11833.072. Civil penalties collected pursuant to this article shall be used to administer this chapter. Article 3. Group Advertising and Referral Services11833.073. (a) As used in this section, member program means a program certified by the department pursuant to Chapter 7.1 (commencing with Section 11832) or a facility licensed by the department pursuant to Chapter 7.5 (commencing with Section 11831.01) that has entered into a written agreement for group advertising and referral service with a referral agency or any entity that holds itself out as a provider of addiction treatment services.(b) It shall be unlawful for a referral agency licensed pursuant to this chapter to participate in or operate a group advertising and referral service for addiction treatment services unless all of the following conditions are met:(1) Patient referrals made by the referral agency are the result of patient-initiated responses to service advertising.(2) The referral agency advertises, if at all, in conformity with Section 651 of the Business and Professions Code.(3) The referral agency does not employ a solicitor.(4) The referral agency does not impose a fee on its member programs that is dependent upon the number of referrals or amount of professional fees paid by the patient to the referral agency or member program.(5) Member programs charge no more than their usual and customary fees to any patient referred.(6) The referral agency files with the department a copy of the standard form contract that regulates its relationship with member programs. The contract shall be kept confidential and is not open to public inspection.(7) If more than 50 percent of its referrals are made to 50 or fewer member programs, the referral agency discloses that fact in all public communications, including, but not limited to, communication by means of television, radio, motion picture, newspaper, book, internet, or list or directory.(c) The department may adopt regulations necessary to enforce and administer this section.(d) The department or five or more individual or member programs may petition the superior court of any county for the issuance of an injunction restraining conduct that constitutes a violation of this section.(e) It is unlawful and shall be punishable as a misdemeanor for any individual, association, partnership, corporation, or otherwise to operate a group advertising and referral service for addiction treatment without providing its name and address to the department.
CHAPTER 7.45. Referral Agencies Article 1. General Provisions11833.06. (a) It is unlawful for a person, association, or corporation to establish, conduct, or maintain a referral agency, or to refer a person for remuneration to a program certified by the department pursuant to Chapter 7.1 (commencing with Section 11832) or a facility licensed by the department pursuant to Chapter 7.5 (commencing with Section 11834.01) without first obtaining a written license therefor as provided in this chapter from the director.(b) As used in this chapter, referral agency means a private, profit, or nonprofit agency that is engaged in the business of referring persons for remuneration to a program or facility described in subdivision (a).11833.061. (a) An application for a license or renewal of license under this chapter shall be accompanied by an annual fee. Each license shall expire 12 months from its date of issuance and the application for renewal accompanied by the fee shall be filed with the director not later than 30 days prior to the date of expiration. The amount of the fee shall not exceed the reasonable regulatory cost of administering the licensing program.(b) A licensee shall not have a direct or indirect financial interest in a program or facility doing business with the licensee.(c) Separate licenses shall be required for referral agencies that are maintained on separate, noncontiguous premises.(d) A license issued under this chapter is not transferable.11833.062. A license application shall be submitted to the department when any of the following circumstances occurs:(a) Change of ownership of the referral agency.(b) Change of name of the referral agency.(c) Change of location of the referral agency.11833.063. A person, partnership, firm, corporation, or association desiring to obtain a license shall file with the department an application on forms furnished by the department. The application shall contain all of the following:(a) Name of the applicant and, if an individual, whether the applicant has attained 18 years of age.(b) Name of the referral agency.(c) The location of the referral agency.(d) The business or occupation engaged in by each applicant, and by each partner, officer, and director, for at least two years immediately preceding the filing of the application. In addition, each partner, officer, and director shall submit a statement setting forth whether they have previously engaged in the operation of a referral agency, whether they have been involved in, or the subject of, a refusal or revocation of a referral agency license, and whether they have been convicted of a crime other than a minor traffic offense.(e) If the applicant is a corporation, the name and principal business address of each officer and director of the corporation, and for nonpublic corporations, the name and business address of each stockholder owning 10 percent or more of the stock and the name and business address of any corporation member who has responsibility in the operation of the facility.(f) If the applicant is a partnership, the name and principal business address of each partner.(g) Evidence of the right to occupy the premises where the referral agency is to be located.(h) A copy of the partnership agreement or the articles of incorporation, if applicable.(i) A copy of the current organization chart.(j) A schedule of fees to be charged and collected by the referral agency and a statement of the method by which each fee is to be computed or determined.(k) A declaration that the licensee will not have any financial interest in any facility doing business with the referral agency.(l) Evidence satisfactory to the department that the applicant demonstrates reputable and responsible character and the capability to comply with this chapter.11833.064. This chapter does not apply to a local public agency performing referral services without cost to recipients of adult alcoholism or drug abuse recovery or treatment services when otherwise authorized by law.11833.065. (a) A licensee desiring to voluntarily surrender their license for cancellation or temporary suspension shall notify the department in writing as soon as possible and, in all cases, a minimum of 30 days before the effective date of cancellation or temporary suspension of the license.(b) A license placed in temporary suspension pursuant to this section may be reinstated by the department within 12 months of the date of the voluntary suspension upon receipt of an application and evidence of compliance with licensing requirements.11833.067. (a) Upon verification of compliance with this chapter and with the approval of the department, the department shall issue the license to the applicant.(b) If the applicant is not in compliance with this chapter, the department shall deny the applicant a license. Immediately upon the denial of a license, the department shall notify the applicant in writing. Within 20 days of receipt of the departments notice, the applicant may present their written petition for a hearing to the department. The proceedings shall be conducted in accordance with Section 100171.11833.068. The original license or true copy of the license shall be conspicuously posted in a prominent location accessible to public view.11833.069. (a) The licensee shall notify the department within 10 days in writing when a change of stockholder owning 10 percent or more of the nonpublic corporate stock occurs. The writing shall include the name and principal mailing addresses of the new stockholder.(b) When a change of agency manager occurs, the licensee shall notify the department in writing within 10 days of the change. The notification shall include the name of the new agency manager.(c) Each licensee shall notify the department in writing within 10 days of any change of the licensees mailing address. The writing shall include the licensees new mailing address.(d) When a change in the principal officer of a corporate licensee, chairperson, president, or general manager occurs, the licensee shall notify the department in writing within 10 days. The writing shall include the name and principal business address of the officer. Article 2. Penalties11833.070. The department may suspend or revoke a license issued under this chapter for a violation of any provision of the chapter or any regulation adopted by the department pursuant to this chapter. In addition, the department shall assess a civil penalty in the amount of fees received by a licensee as a result of a violation of any provision of the chapter or regulation. Proceedings to suspend or revoke a license shall be conducted pursuant to Section 100171.11833.071. A person, association, or corporation referring persons without a license in violation of Section 11833.06 shall be liable for a civil penalty in the amount of the remuneration illegally received, which shall be assessed and recovered in a civil action brought in the name of the people of the State of California by the Attorney General in any court of competent jurisdiction.11833.072. Civil penalties collected pursuant to this article shall be used to administer this chapter. Article 3. Group Advertising and Referral Services11833.073. (a) As used in this section, member program means a program certified by the department pursuant to Chapter 7.1 (commencing with Section 11832) or a facility licensed by the department pursuant to Chapter 7.5 (commencing with Section 11831.01) that has entered into a written agreement for group advertising and referral service with a referral agency or any entity that holds itself out as a provider of addiction treatment services.(b) It shall be unlawful for a referral agency licensed pursuant to this chapter to participate in or operate a group advertising and referral service for addiction treatment services unless all of the following conditions are met:(1) Patient referrals made by the referral agency are the result of patient-initiated responses to service advertising.(2) The referral agency advertises, if at all, in conformity with Section 651 of the Business and Professions Code.(3) The referral agency does not employ a solicitor.(4) The referral agency does not impose a fee on its member programs that is dependent upon the number of referrals or amount of professional fees paid by the patient to the referral agency or member program.(5) Member programs charge no more than their usual and customary fees to any patient referred.(6) The referral agency files with the department a copy of the standard form contract that regulates its relationship with member programs. The contract shall be kept confidential and is not open to public inspection.(7) If more than 50 percent of its referrals are made to 50 or fewer member programs, the referral agency discloses that fact in all public communications, including, but not limited to, communication by means of television, radio, motion picture, newspaper, book, internet, or list or directory.(c) The department may adopt regulations necessary to enforce and administer this section.(d) The department or five or more individual or member programs may petition the superior court of any county for the issuance of an injunction restraining conduct that constitutes a violation of this section.(e) It is unlawful and shall be punishable as a misdemeanor for any individual, association, partnership, corporation, or otherwise to operate a group advertising and referral service for addiction treatment without providing its name and address to the department.
CHAPTER 7.45. Referral Agencies
CHAPTER 7.45. Referral Agencies
Article 1. General Provisions11833.06. (a) It is unlawful for a person, association, or corporation to establish, conduct, or maintain a referral agency, or to refer a person for remuneration to a program certified by the department pursuant to Chapter 7.1 (commencing with Section 11832) or a facility licensed by the department pursuant to Chapter 7.5 (commencing with Section 11834.01) without first obtaining a written license therefor as provided in this chapter from the director.(b) As used in this chapter, referral agency means a private, profit, or nonprofit agency that is engaged in the business of referring persons for remuneration to a program or facility described in subdivision (a).11833.061. (a) An application for a license or renewal of license under this chapter shall be accompanied by an annual fee. Each license shall expire 12 months from its date of issuance and the application for renewal accompanied by the fee shall be filed with the director not later than 30 days prior to the date of expiration. The amount of the fee shall not exceed the reasonable regulatory cost of administering the licensing program.(b) A licensee shall not have a direct or indirect financial interest in a program or facility doing business with the licensee.(c) Separate licenses shall be required for referral agencies that are maintained on separate, noncontiguous premises.(d) A license issued under this chapter is not transferable.11833.062. A license application shall be submitted to the department when any of the following circumstances occurs:(a) Change of ownership of the referral agency.(b) Change of name of the referral agency.(c) Change of location of the referral agency.11833.063. A person, partnership, firm, corporation, or association desiring to obtain a license shall file with the department an application on forms furnished by the department. The application shall contain all of the following:(a) Name of the applicant and, if an individual, whether the applicant has attained 18 years of age.(b) Name of the referral agency.(c) The location of the referral agency.(d) The business or occupation engaged in by each applicant, and by each partner, officer, and director, for at least two years immediately preceding the filing of the application. In addition, each partner, officer, and director shall submit a statement setting forth whether they have previously engaged in the operation of a referral agency, whether they have been involved in, or the subject of, a refusal or revocation of a referral agency license, and whether they have been convicted of a crime other than a minor traffic offense.(e) If the applicant is a corporation, the name and principal business address of each officer and director of the corporation, and for nonpublic corporations, the name and business address of each stockholder owning 10 percent or more of the stock and the name and business address of any corporation member who has responsibility in the operation of the facility.(f) If the applicant is a partnership, the name and principal business address of each partner.(g) Evidence of the right to occupy the premises where the referral agency is to be located.(h) A copy of the partnership agreement or the articles of incorporation, if applicable.(i) A copy of the current organization chart.(j) A schedule of fees to be charged and collected by the referral agency and a statement of the method by which each fee is to be computed or determined.(k) A declaration that the licensee will not have any financial interest in any facility doing business with the referral agency.(l) Evidence satisfactory to the department that the applicant demonstrates reputable and responsible character and the capability to comply with this chapter.11833.064. This chapter does not apply to a local public agency performing referral services without cost to recipients of adult alcoholism or drug abuse recovery or treatment services when otherwise authorized by law.11833.065. (a) A licensee desiring to voluntarily surrender their license for cancellation or temporary suspension shall notify the department in writing as soon as possible and, in all cases, a minimum of 30 days before the effective date of cancellation or temporary suspension of the license.(b) A license placed in temporary suspension pursuant to this section may be reinstated by the department within 12 months of the date of the voluntary suspension upon receipt of an application and evidence of compliance with licensing requirements.11833.067. (a) Upon verification of compliance with this chapter and with the approval of the department, the department shall issue the license to the applicant.(b) If the applicant is not in compliance with this chapter, the department shall deny the applicant a license. Immediately upon the denial of a license, the department shall notify the applicant in writing. Within 20 days of receipt of the departments notice, the applicant may present their written petition for a hearing to the department. The proceedings shall be conducted in accordance with Section 100171.11833.068. The original license or true copy of the license shall be conspicuously posted in a prominent location accessible to public view.11833.069. (a) The licensee shall notify the department within 10 days in writing when a change of stockholder owning 10 percent or more of the nonpublic corporate stock occurs. The writing shall include the name and principal mailing addresses of the new stockholder.(b) When a change of agency manager occurs, the licensee shall notify the department in writing within 10 days of the change. The notification shall include the name of the new agency manager.(c) Each licensee shall notify the department in writing within 10 days of any change of the licensees mailing address. The writing shall include the licensees new mailing address.(d) When a change in the principal officer of a corporate licensee, chairperson, president, or general manager occurs, the licensee shall notify the department in writing within 10 days. The writing shall include the name and principal business address of the officer.
Article 1. General Provisions
Article 1. General Provisions
11833.06. (a) It is unlawful for a person, association, or corporation to establish, conduct, or maintain a referral agency, or to refer a person for remuneration to a program certified by the department pursuant to Chapter 7.1 (commencing with Section 11832) or a facility licensed by the department pursuant to Chapter 7.5 (commencing with Section 11834.01) without first obtaining a written license therefor as provided in this chapter from the director.(b) As used in this chapter, referral agency means a private, profit, or nonprofit agency that is engaged in the business of referring persons for remuneration to a program or facility described in subdivision (a).
11833.06. (a) It is unlawful for a person, association, or corporation to establish, conduct, or maintain a referral agency, or to refer a person for remuneration to a program certified by the department pursuant to Chapter 7.1 (commencing with Section 11832) or a facility licensed by the department pursuant to Chapter 7.5 (commencing with Section 11834.01) without first obtaining a written license therefor as provided in this chapter from the director.
(b) As used in this chapter, referral agency means a private, profit, or nonprofit agency that is engaged in the business of referring persons for remuneration to a program or facility described in subdivision (a).
11833.061. (a) An application for a license or renewal of license under this chapter shall be accompanied by an annual fee. Each license shall expire 12 months from its date of issuance and the application for renewal accompanied by the fee shall be filed with the director not later than 30 days prior to the date of expiration. The amount of the fee shall not exceed the reasonable regulatory cost of administering the licensing program.(b) A licensee shall not have a direct or indirect financial interest in a program or facility doing business with the licensee.(c) Separate licenses shall be required for referral agencies that are maintained on separate, noncontiguous premises.(d) A license issued under this chapter is not transferable.
11833.061. (a) An application for a license or renewal of license under this chapter shall be accompanied by an annual fee. Each license shall expire 12 months from its date of issuance and the application for renewal accompanied by the fee shall be filed with the director not later than 30 days prior to the date of expiration. The amount of the fee shall not exceed the reasonable regulatory cost of administering the licensing program.
(b) A licensee shall not have a direct or indirect financial interest in a program or facility doing business with the licensee.
(c) Separate licenses shall be required for referral agencies that are maintained on separate, noncontiguous premises.
(d) A license issued under this chapter is not transferable.
11833.062. A license application shall be submitted to the department when any of the following circumstances occurs:(a) Change of ownership of the referral agency.(b) Change of name of the referral agency.(c) Change of location of the referral agency.
11833.062. A license application shall be submitted to the department when any of the following circumstances occurs:
(a) Change of ownership of the referral agency.
(b) Change of name of the referral agency.
(c) Change of location of the referral agency.
11833.063. A person, partnership, firm, corporation, or association desiring to obtain a license shall file with the department an application on forms furnished by the department. The application shall contain all of the following:(a) Name of the applicant and, if an individual, whether the applicant has attained 18 years of age.(b) Name of the referral agency.(c) The location of the referral agency.(d) The business or occupation engaged in by each applicant, and by each partner, officer, and director, for at least two years immediately preceding the filing of the application. In addition, each partner, officer, and director shall submit a statement setting forth whether they have previously engaged in the operation of a referral agency, whether they have been involved in, or the subject of, a refusal or revocation of a referral agency license, and whether they have been convicted of a crime other than a minor traffic offense.(e) If the applicant is a corporation, the name and principal business address of each officer and director of the corporation, and for nonpublic corporations, the name and business address of each stockholder owning 10 percent or more of the stock and the name and business address of any corporation member who has responsibility in the operation of the facility.(f) If the applicant is a partnership, the name and principal business address of each partner.(g) Evidence of the right to occupy the premises where the referral agency is to be located.(h) A copy of the partnership agreement or the articles of incorporation, if applicable.(i) A copy of the current organization chart.(j) A schedule of fees to be charged and collected by the referral agency and a statement of the method by which each fee is to be computed or determined.(k) A declaration that the licensee will not have any financial interest in any facility doing business with the referral agency.(l) Evidence satisfactory to the department that the applicant demonstrates reputable and responsible character and the capability to comply with this chapter.
11833.063. A person, partnership, firm, corporation, or association desiring to obtain a license shall file with the department an application on forms furnished by the department. The application shall contain all of the following:
(a) Name of the applicant and, if an individual, whether the applicant has attained 18 years of age.
(b) Name of the referral agency.
(c) The location of the referral agency.
(d) The business or occupation engaged in by each applicant, and by each partner, officer, and director, for at least two years immediately preceding the filing of the application. In addition, each partner, officer, and director shall submit a statement setting forth whether they have previously engaged in the operation of a referral agency, whether they have been involved in, or the subject of, a refusal or revocation of a referral agency license, and whether they have been convicted of a crime other than a minor traffic offense.
(e) If the applicant is a corporation, the name and principal business address of each officer and director of the corporation, and for nonpublic corporations, the name and business address of each stockholder owning 10 percent or more of the stock and the name and business address of any corporation member who has responsibility in the operation of the facility.
(f) If the applicant is a partnership, the name and principal business address of each partner.
(g) Evidence of the right to occupy the premises where the referral agency is to be located.
(h) A copy of the partnership agreement or the articles of incorporation, if applicable.
(i) A copy of the current organization chart.
(j) A schedule of fees to be charged and collected by the referral agency and a statement of the method by which each fee is to be computed or determined.
(k) A declaration that the licensee will not have any financial interest in any facility doing business with the referral agency.
(l) Evidence satisfactory to the department that the applicant demonstrates reputable and responsible character and the capability to comply with this chapter.
11833.064. This chapter does not apply to a local public agency performing referral services without cost to recipients of adult alcoholism or drug abuse recovery or treatment services when otherwise authorized by law.
11833.064. This chapter does not apply to a local public agency performing referral services without cost to recipients of adult alcoholism or drug abuse recovery or treatment services when otherwise authorized by law.
11833.065. (a) A licensee desiring to voluntarily surrender their license for cancellation or temporary suspension shall notify the department in writing as soon as possible and, in all cases, a minimum of 30 days before the effective date of cancellation or temporary suspension of the license.(b) A license placed in temporary suspension pursuant to this section may be reinstated by the department within 12 months of the date of the voluntary suspension upon receipt of an application and evidence of compliance with licensing requirements.
11833.065. (a) A licensee desiring to voluntarily surrender their license for cancellation or temporary suspension shall notify the department in writing as soon as possible and, in all cases, a minimum of 30 days before the effective date of cancellation or temporary suspension of the license.
(b) A license placed in temporary suspension pursuant to this section may be reinstated by the department within 12 months of the date of the voluntary suspension upon receipt of an application and evidence of compliance with licensing requirements.
11833.067. (a) Upon verification of compliance with this chapter and with the approval of the department, the department shall issue the license to the applicant.(b) If the applicant is not in compliance with this chapter, the department shall deny the applicant a license. Immediately upon the denial of a license, the department shall notify the applicant in writing. Within 20 days of receipt of the departments notice, the applicant may present their written petition for a hearing to the department. The proceedings shall be conducted in accordance with Section 100171.
11833.067. (a) Upon verification of compliance with this chapter and with the approval of the department, the department shall issue the license to the applicant.
(b) If the applicant is not in compliance with this chapter, the department shall deny the applicant a license. Immediately upon the denial of a license, the department shall notify the applicant in writing. Within 20 days of receipt of the departments notice, the applicant may present their written petition for a hearing to the department. The proceedings shall be conducted in accordance with Section 100171.
11833.068. The original license or true copy of the license shall be conspicuously posted in a prominent location accessible to public view.
11833.068. The original license or true copy of the license shall be conspicuously posted in a prominent location accessible to public view.
11833.069. (a) The licensee shall notify the department within 10 days in writing when a change of stockholder owning 10 percent or more of the nonpublic corporate stock occurs. The writing shall include the name and principal mailing addresses of the new stockholder.(b) When a change of agency manager occurs, the licensee shall notify the department in writing within 10 days of the change. The notification shall include the name of the new agency manager.(c) Each licensee shall notify the department in writing within 10 days of any change of the licensees mailing address. The writing shall include the licensees new mailing address.(d) When a change in the principal officer of a corporate licensee, chairperson, president, or general manager occurs, the licensee shall notify the department in writing within 10 days. The writing shall include the name and principal business address of the officer.
11833.069. (a) The licensee shall notify the department within 10 days in writing when a change of stockholder owning 10 percent or more of the nonpublic corporate stock occurs. The writing shall include the name and principal mailing addresses of the new stockholder.
(b) When a change of agency manager occurs, the licensee shall notify the department in writing within 10 days of the change. The notification shall include the name of the new agency manager.
(c) Each licensee shall notify the department in writing within 10 days of any change of the licensees mailing address. The writing shall include the licensees new mailing address.
(d) When a change in the principal officer of a corporate licensee, chairperson, president, or general manager occurs, the licensee shall notify the department in writing within 10 days. The writing shall include the name and principal business address of the officer.
Article 2. Penalties11833.070. The department may suspend or revoke a license issued under this chapter for a violation of any provision of the chapter or any regulation adopted by the department pursuant to this chapter. In addition, the department shall assess a civil penalty in the amount of fees received by a licensee as a result of a violation of any provision of the chapter or regulation. Proceedings to suspend or revoke a license shall be conducted pursuant to Section 100171.11833.071. A person, association, or corporation referring persons without a license in violation of Section 11833.06 shall be liable for a civil penalty in the amount of the remuneration illegally received, which shall be assessed and recovered in a civil action brought in the name of the people of the State of California by the Attorney General in any court of competent jurisdiction.11833.072. Civil penalties collected pursuant to this article shall be used to administer this chapter.
Article 2. Penalties
Article 2. Penalties
11833.070. The department may suspend or revoke a license issued under this chapter for a violation of any provision of the chapter or any regulation adopted by the department pursuant to this chapter. In addition, the department shall assess a civil penalty in the amount of fees received by a licensee as a result of a violation of any provision of the chapter or regulation. Proceedings to suspend or revoke a license shall be conducted pursuant to Section 100171.
11833.070. The department may suspend or revoke a license issued under this chapter for a violation of any provision of the chapter or any regulation adopted by the department pursuant to this chapter. In addition, the department shall assess a civil penalty in the amount of fees received by a licensee as a result of a violation of any provision of the chapter or regulation. Proceedings to suspend or revoke a license shall be conducted pursuant to Section 100171.
11833.071. A person, association, or corporation referring persons without a license in violation of Section 11833.06 shall be liable for a civil penalty in the amount of the remuneration illegally received, which shall be assessed and recovered in a civil action brought in the name of the people of the State of California by the Attorney General in any court of competent jurisdiction.
11833.071. A person, association, or corporation referring persons without a license in violation of Section 11833.06 shall be liable for a civil penalty in the amount of the remuneration illegally received, which shall be assessed and recovered in a civil action brought in the name of the people of the State of California by the Attorney General in any court of competent jurisdiction.
11833.072. Civil penalties collected pursuant to this article shall be used to administer this chapter.
11833.072. Civil penalties collected pursuant to this article shall be used to administer this chapter.
Article 3. Group Advertising and Referral Services11833.073. (a) As used in this section, member program means a program certified by the department pursuant to Chapter 7.1 (commencing with Section 11832) or a facility licensed by the department pursuant to Chapter 7.5 (commencing with Section 11831.01) that has entered into a written agreement for group advertising and referral service with a referral agency or any entity that holds itself out as a provider of addiction treatment services.(b) It shall be unlawful for a referral agency licensed pursuant to this chapter to participate in or operate a group advertising and referral service for addiction treatment services unless all of the following conditions are met:(1) Patient referrals made by the referral agency are the result of patient-initiated responses to service advertising.(2) The referral agency advertises, if at all, in conformity with Section 651 of the Business and Professions Code.(3) The referral agency does not employ a solicitor.(4) The referral agency does not impose a fee on its member programs that is dependent upon the number of referrals or amount of professional fees paid by the patient to the referral agency or member program.(5) Member programs charge no more than their usual and customary fees to any patient referred.(6) The referral agency files with the department a copy of the standard form contract that regulates its relationship with member programs. The contract shall be kept confidential and is not open to public inspection.(7) If more than 50 percent of its referrals are made to 50 or fewer member programs, the referral agency discloses that fact in all public communications, including, but not limited to, communication by means of television, radio, motion picture, newspaper, book, internet, or list or directory.(c) The department may adopt regulations necessary to enforce and administer this section.(d) The department or five or more individual or member programs may petition the superior court of any county for the issuance of an injunction restraining conduct that constitutes a violation of this section.(e) It is unlawful and shall be punishable as a misdemeanor for any individual, association, partnership, corporation, or otherwise to operate a group advertising and referral service for addiction treatment without providing its name and address to the department.
Article 3. Group Advertising and Referral Services
Article 3. Group Advertising and Referral Services
11833.073. (a) As used in this section, member program means a program certified by the department pursuant to Chapter 7.1 (commencing with Section 11832) or a facility licensed by the department pursuant to Chapter 7.5 (commencing with Section 11831.01) that has entered into a written agreement for group advertising and referral service with a referral agency or any entity that holds itself out as a provider of addiction treatment services.(b) It shall be unlawful for a referral agency licensed pursuant to this chapter to participate in or operate a group advertising and referral service for addiction treatment services unless all of the following conditions are met:(1) Patient referrals made by the referral agency are the result of patient-initiated responses to service advertising.(2) The referral agency advertises, if at all, in conformity with Section 651 of the Business and Professions Code.(3) The referral agency does not employ a solicitor.(4) The referral agency does not impose a fee on its member programs that is dependent upon the number of referrals or amount of professional fees paid by the patient to the referral agency or member program.(5) Member programs charge no more than their usual and customary fees to any patient referred.(6) The referral agency files with the department a copy of the standard form contract that regulates its relationship with member programs. The contract shall be kept confidential and is not open to public inspection.(7) If more than 50 percent of its referrals are made to 50 or fewer member programs, the referral agency discloses that fact in all public communications, including, but not limited to, communication by means of television, radio, motion picture, newspaper, book, internet, or list or directory.(c) The department may adopt regulations necessary to enforce and administer this section.(d) The department or five or more individual or member programs may petition the superior court of any county for the issuance of an injunction restraining conduct that constitutes a violation of this section.(e) It is unlawful and shall be punishable as a misdemeanor for any individual, association, partnership, corporation, or otherwise to operate a group advertising and referral service for addiction treatment without providing its name and address to the department.
11833.073. (a) As used in this section, member program means a program certified by the department pursuant to Chapter 7.1 (commencing with Section 11832) or a facility licensed by the department pursuant to Chapter 7.5 (commencing with Section 11831.01) that has entered into a written agreement for group advertising and referral service with a referral agency or any entity that holds itself out as a provider of addiction treatment services.
(b) It shall be unlawful for a referral agency licensed pursuant to this chapter to participate in or operate a group advertising and referral service for addiction treatment services unless all of the following conditions are met:
(1) Patient referrals made by the referral agency are the result of patient-initiated responses to service advertising.
(2) The referral agency advertises, if at all, in conformity with Section 651 of the Business and Professions Code.
(3) The referral agency does not employ a solicitor.
(4) The referral agency does not impose a fee on its member programs that is dependent upon the number of referrals or amount of professional fees paid by the patient to the referral agency or member program.
(5) Member programs charge no more than their usual and customary fees to any patient referred.
(6) The referral agency files with the department a copy of the standard form contract that regulates its relationship with member programs. The contract shall be kept confidential and is not open to public inspection.
(7) If more than 50 percent of its referrals are made to 50 or fewer member programs, the referral agency discloses that fact in all public communications, including, but not limited to, communication by means of television, radio, motion picture, newspaper, book, internet, or list or directory.
(c) The department may adopt regulations necessary to enforce and administer this section.
(d) The department or five or more individual or member programs may petition the superior court of any county for the issuance of an injunction restraining conduct that constitutes a violation of this section.
(e) It is unlawful and shall be punishable as a misdemeanor for any individual, association, partnership, corporation, or otherwise to operate a group advertising and referral service for addiction treatment without providing its name and address to the department.
SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
### SEC. 3.
SEC. 4. The Legislature finds and declares that Section 2 of this act, which adds Section 11833.073 to the Health and Safety Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:To ensure viable competition between referral agencies and to encourage a wide breadth of program participation, it is necessary to exempt these standard form contracts from public disclosure.
SEC. 4. The Legislature finds and declares that Section 2 of this act, which adds Section 11833.073 to the Health and Safety Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:To ensure viable competition between referral agencies and to encourage a wide breadth of program participation, it is necessary to exempt these standard form contracts from public disclosure.
SEC. 4. The Legislature finds and declares that Section 2 of this act, which adds Section 11833.073 to the Health and Safety Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
### SEC. 4.
To ensure viable competition between referral agencies and to encourage a wide breadth of program participation, it is necessary to exempt these standard form contracts from public disclosure.