AB 77 Summary

• Establishes mandatory licensing for substance use disorder treatment programs beginning January 1, 2026, requiring all programs to be licensed by the State Department of Health Care Services for two-year periods, with exemptions for certain existing facilities and licensed professionals in private practice.

• Requires licensed programs to meet specific quality parameters including medical necessity criteria for patient admission, comprehensive assessments within three days, individualized treatment plans, weekly service documentation, and discharge summaries within five days.

• Mandates minimum staff qualifications including a program director with relevant experience, certified alcohol and drug counselors with specific training and credentials, and designated on-site staff during all operating hours; establishes staffing ratios for group counseling capped at 16 patients.

• Authorizes the department to conduct unannounced site inspections, assess civil penalties of $250-$500 per day for violations (up to $1,000 per day for repeated violations), and suspend or revoke licenses for non-compliance; establishes procedures for license denial and termination.

• Creates the Residential and Outpatient Program Licensing Fund from collected fees, fines, and penalties to support licensing activities, with General Fund backing if insufficient.