CA AB423

Business-operated recovery residences must register their locations with the State Department of Health Care Services

"Business-operated recovery residence" is defined as a recovery residence where a business provides more than one service beyond typical tenancy (such as drug testing, supervision, scheduling, rule enforcement, transportation, meal preparation, or gym memberships) to more than one occupant in exchange for compensation

Certified alcohol/drug programs and licensed facilities must continue disclosing to the department any ownership, financial interest, or contractual relationships with recovery residences or entities providing recovery services

The department retains authority to suspend or revoke certification/licensure for failing to make required disclosures and may refer substantiated complaints against recovery residences to enforcement entities including the Department of Insurance and Attorney General