Alcohol and drug programs.

In Section 11834.31(b), removed the redundant item '(1) Submit the findings of the investigation to the department' from the list of departmental actions, since the preamble already states the employee submits findings. Also removed the phrase 'Upon departmental authorization, issue' and changed the cross-reference from 'pursuant to paragraph (1) this subdivision' to 'pursuant to this subdivision.'

Renumbered the action items in Section 11834.31(b) from a confusing sequence (1, 2, then 1 again, then 3, 4, 3) to a clean sequential list: (1) issue written notice, (2) inform facility of licensing requirements, (3) conduct followup site visit.

Removed the procedural note 'Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.' which is standard to strip from enrolled bills.

Investigation completion deadline extended from 60 days after initiating the investigation to 120 days after assigning the complaint to an analyst, giving the department significantly more time to complete investigations.

The first annual reporting deadline for money transfers between programs/facilities and recovery residences was pushed back one year, from July 15, 2026 to July 15, 2027.

Responsibility for issuing the written violation notice to a facility shifted from the department's employee or agent to the department itself. The employee or agent now only submits findings, and the department issues the notice within 10 days of receiving those findings.

A new notice requirement (subparagraph D) was added requiring that the violation notice inform the facility that the department will conduct a follow-up site visit to verify compliance, unless the department has already received sufficient evidence that the facility ceased providing services.

The requirement for the department to notify complainants about complaints outside its jurisdiction was softened by adding the qualifier 'to the extent feasible,' making the notification obligation less absolute.

The entire victim compensation component was removed. This included provisions that would have allowed prosecutors to rely solely on the trial record to object to erroneous conviction claims, extended objection deadlines from 15 to 45 days for district attorneys (with additional extension options), prohibited compensation for persons serving sentences for serious or violent felonies, and required restitution orders be paid from compensation before the claimant receives funds.

County behavioral health agencies' authority to request site visits of recovery residences was narrowed from any residence alleged to be operating without a license to only those that the county contracts with and are alleged to be in violation of Section 11834.30.

The investigation completion deadline was extended from 60 days after initiating the investigation to 120 days after assigning the complaint to an analyst. The initial step was also changed from 'initiate an investigation within 10 days' to 'assign the complaint to an analyst within 10 days,' which is a less demanding action.

The first money transfer reporting deadline was clarified to explicitly include both July 15, 2026 and July 15, 2027, before the annual requirement begins (previously stated as 'July 15, 2026, and by July 15 each year thereafter').

The requirement for the department to notify complainants that a complaint does not fall under its jurisdiction was softened by adding 'to the extent feasible,' making it no longer an absolute obligation.

Assembly Members Patel and Schiavo were added as coauthors of the bill.

The bill now amends Health and Safety Code Sections 11833.05 and 11834.31 in addition to the existing Penal Code amendments, expanding its scope from victim compensation only to also cover regulation of alcohol and drug recovery or treatment facilities.

In counties that elect to administer the Drug Medi-Cal organized delivery system and provide optional recovery housing services, the county behavioral health agency may request approval from the department to conduct a site visit of a recovery residence alleged to be operating without a license. The department may approve if it has sufficient evidence to substantiate the allegation and has failed to initiate or conclude its own investigation within the required time limits.

The previously included Penal Code sections (1485.55, 4902, 4903, and 4904) regarding victim compensation are omitted from this version of the bill. A note indicates all omitted matter appears in the bill as amended in the Senate on March 26, 2025, meaning those provisions remain unchanged from the prior amendment.

Certified programs and licensed facilities must disclose to the Department of Public Health whether any agent, partner, director, officer, or owner has ownership, control, financial interest in, or a contractual relationship with a recovery residence. Failure to disclose can result in suspension or revocation of certification or license.

The department's employee or agent must conduct a follow-up site visit to determine whether a facility has ceased providing services as required by the written notice.

If the department takes action against a recovery residence disclosed by a certified program or licensed facility, the department must conduct a site visit of that disclosing program or facility.

Starting July 15, 2026, and annually thereafter by July 15, all certified programs and licensed facilities must submit a report of all money transfers between the program or facility and a recovery residence during the previous fiscal year, to detect patient brokering, illicit kickbacks, or unethical inducements.

The department must initiate an investigation within 10 days of receiving an allegation that a facility is operating without a license, and complete the investigation within 60 days of initiation (unless assistance from other agencies or significant additional resources are needed). If delayed beyond 60 days, the department must notify the complainant in writing of the reason.

The department must analyze transfer data for compliance trends, irregularities, or fraud indicators, and develop guidelines for permissible and impermissible transfers between programs/facilities and recovery residences.

A civil penalty of $2,000 per day is imposed for every day a facility continues to provide services beyond the cease date specified in the written notice. The case will be referred for civil proceedings if the facility continues operating past that date.

A person or entity found to be in violation of the unlicensed operation prohibition is prohibited from applying for initial licensure for a period of five years from the date of the notice.

A new definition of 'recovery residence' is added, meaning a residential dwelling that provides primary housing for individuals seeking a cooperative living arrangement supporting personal recovery from substance use disorder, that does not require licensure or does not provide licensable services. This includes dwellings commonly referred to as sober living homes, sober living environments, or unlicensed alcohol and drug free residences.

Reversed the rule on trial record reliance: the introduced version prohibited the DA and AG from relying solely on the trial record to deny a claim; the amended version now permits them to rely solely on the trial record if they conclude in good faith that it demonstrates guilt by clear and convincing evidence even after consideration of any exculpatory evidence presented by the claimant.

Shortened the district attorney's objection deadline from 120 days to 45 days, but added a second extension option: an initial 30-day extension plus a single subsequent 15-day extension, each requiring a separate showing of good cause (previously only a single 30-day extension was available).

Shortened the Attorney General's objection deadline from 120 days to 45 days, but added a second extension option: an initial 45-day extension plus a single subsequent 45-day extension, each requiring a separate showing of good cause (previously only a single 45-day extension was available).

Removed the sunset/repeal provision in Section 4904 that would have made the compensation calculation section inoperative on July 1, 2024 if General Fund moneys over multiyear forecasts were available to support ongoing augmentations and a backfill appropriation to the Restitution Fund was made.