CA SB35

Requires the State Department of Public Health to initiate investigations of unlicensed alcohol or drug treatment facilities within 10 days of receiving allegations and complete investigations within 60 days, with exceptions for cases requiring interagency assistance or significant additional resources

Mandates that written notices to facilities operating without a license be issued within 10 days of investigation findings being submitted, with $2,000 per day civil penalties for continued operation past the cease-services date

Requires all certified programs and licensed facilities to submit annual reports by July 15 (starting 2026) detailing money transfers with recovery residences to detect patient brokering, illicit kickbacks, or unethical inducements

Directs the department to analyze financial transfer data for compliance trends, irregularities, or fraud indicators and develop guidelines for permissible and impermissible transfers between treatment facilities and recovery residences

Authorizes county behavioral health agencies in Drug Medi-Cal organized delivery system counties to request department approval to conduct site visits of recovery residences alleged to be operating without a license when the department fails to meet investigation timelines