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Updated:   2026-02-23

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                                <ns0:ActionText>INTRODUCED</ns0:ActionText>
                                <ns0:ActionDate>2026-02-09</ns0:ActionDate>
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                        <ns0:SessionYear>2025</ns0:SessionYear>
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                <ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Davies</ns0:AuthorText>
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                                <ns0:Name>Davies</ns0:Name>
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                <ns0:Title> An act to amend Section 11831.65 of, and to add Section 11831.66 to, the Health and Safety Code, relating to drug and alcohol programs.</ns0:Title>
                <ns0:RelatingClause>drug and alcohol programs</ns0:RelatingClause>
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                        <ns0:Subject>Alcoholism and drug abuse recovery and treatment programs: inducement of participants.</ns0:Subject>
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                        <html:p>Existing law provides for the licensure and regulation of drug testing laboratories and adult alcoholism or drug abuse recovery or treatment facilities and provides for the certification and regulation of adult alcoholism or drug abuse recovery or treatment programs by the State Department of Health Care Services and authorizes the department to enforce those provisions. Existing law authorizes a facility described above to offer transportation services to an individual who is seeking recovery or treatment services only if specified conditions are met, including, among other things, that any air transportation provided to the individual includes a return ticket that may be used by the individual upon discharge and that a return ticket not used by an individual upon discharge is made available to the individual upon request for a period of one year following the individual’s discharge.</html:p>
                        <html:p>This bill would require a laboratory, facility, or program described above that provides air transportation to provide a ticket for round-trip transportation, to obtain written acknowledgment by the individual that the transportation is not tied to insurance benefits or program participation, to document the purpose and cost of the transportation, to compile information related to the provision of transportation, and to annually publish the compiled information on its internet website. The bill would require a laboratory, facility, or program to retain the information for a minimum of 5 years and to provide that information to the department upon request.</html:p>
                        <html:p>The bill would prohibit a laboratory, facility, or program described above from offering or providing any form of remuneration, including, but not limited to, a stipend or gift card, for specified purposes, including, among others, to influence or induce an individual to
                enter or stay in a treatment or recovery program or to recruit individuals for treatment, unless otherwise specified.</html:p>
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                <ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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                        <ns0:Num>SECTION 1.</ns0:Num>
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                                Section 11831.65 of the
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                                 is amended to read:
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                                        <ns0:Num>11831.65.</ns0:Num>
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                                                                (a)
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                                                                A laboratory or certified outpatient treatment program that leases, manages, or owns housing units that are offered to individuals who concurrently utilize laboratory or outpatient services shall maintain separate contracts for the housing. The contract shall clearly state that payment for housing is the responsibility of the individual and does not depend on insurance benefits. The contract shall include a repayment plan for any subsidized rent, and the laboratory or certified outpatient treatment program shall make a good faith effort to collect the debt. The offer for housing shall not depend on the individual’s agreement to receive services from either the laboratory or the certified outpatient treatment program.
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                                                                (b)
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                                                                An alcohol or other drug recovery or
                                  treatment facility licensed under this part shall only offer an individual discounted housing following discharge from the facility if all of the following conditions are met:
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                                                                (1)
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                                                                An alcohol or other drug recovery or treatment facility and the individual enter into a written contract for housing that is separate from the contract for treatment, if the individual also pursues outpatient treatment.
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                                                                (2)
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                                                                The contract described in paragraph (1) includes a repayment plan for any subsidized rent, and the alcohol or other drug recovery or treatment facility makes a good faith effort to collect the debt.
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                                                                (3)
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                                                                The offer for housing is not dependent upon the individual’s agreement to attend outpatient treatment at a program that is owned or operated by the alcohol or other drug recovery or treatment facility.
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                                                                (c)
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                                                                A laboratory or an alcohol or other drug recovery or treatment facility licensed under this part or an alcohol or other drug recovery or treatment program certified under this part shall only offer
                                  necessary transportation services to an individual who is seeking recovery or treatment services if all of the following conditions are met:
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                                                                (1)
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                                                                The assistance is not contingent upon the individual’s agreement to enroll in, remain in, or attend any particular program owned or operated by the provider.
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                                                                (2)
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                                                                The assistance is limited to the actual cost of the transportation and does not include cash, a gift card, or other financial incentives.
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                                                                (3)
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                                                                If ground transportation is provided, it is for a distance of less than 125 miles.
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                                                                (4)
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                                                                (A)
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                                                                If air transportation is provided, the ticket is for round-trip transportation and includes a return ticket that may be used by the individual upon discharge.
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                                                                (B)
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                                                                A return ticket described in this paragraph that is not used by an individual upon discharge is made available to the individual upon request for a period of one year following the individual’s discharge.
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                                                                (5)
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                                                                The laboratory, facility, or program obtains written acknowledgment by the individual that the assistance described in this subdivision is not tied to insurance benefits or program participation.
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                                                                (6)
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                                                                The laboratory, facility, or program documents the purpose and cost of the transportation described in this subdivision.
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                                                                (d)
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                                                                The laboratory, facility, or program shall aggregate the information described in paragraph (6) of subdivision (c) and shall, at least annually, publish on its internet website the aggregated information. The information posted shall not include personally identifiable information
                                  about an individual.
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                                                                (e)
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                                                                The laboratory, facility, or program shall retain the information described in paragraphs (5) and (6) of subdivision (c) and the aggregated information required in subdivision (d) for a minimum of five years and shall provide the information to the department upon request.
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                                                                (f)
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                                                                This section does not prohibit a person, program, or entity from providing an individual educational or informational materials about community resources, including, but not
                                  limited to, housing assistance.
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                        <ns0:Num>SEC. 2.</ns0:Num>
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                                Section 11831.66 is added to the
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                                , to read:
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                                                                (a)
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                                                                A laboratory or alcoholism or drug abuse recovery or treatment facility licensed under this part or an outpatient treatment program certified under this part shall not offer or provide any form of remuneration, including, but not limited to, a stipend or a gift card, for the purpose of any of the following:
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                                                                (1)
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                                                                Influencing or inducing an individual to enter a treatment or recovery program.
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                                                                (2)
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                                                                Influencing or inducing an individual to remain in a treatment or recovery program.
                                                        </html:p>
                                                        <html:p>
                                                                (3)
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                                                                Influencing or inducing an individual to transfer between programs.
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                                                        <html:p>
                                                                (4)
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                                                                Influencing or inducing an individual to utilize laboratory or outpatient services.
                                                        </html:p>
                                                        <html:p>
                                                                (5)
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                                                                Securing referrals.
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                                                                (6)
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                                                                Recruiting individuals for treatment.
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                                                                (7)
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                                                                Increasing insurance-funded billing or patient volume.
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                                                                (8)
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                                                                Engaging in patient brokering or similar practices.
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                                                                (b)
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                                                                This section does not prohibit a person, program, or entity from providing an individual with educational or informational materials about community, governmental, or nonprofit resources if no remuneration is offered in exchange for treatment enrollment or continued participation.
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                                                                (c)
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                                                                This section does not apply to the provision of housing or
                                  transportation as described in Section 11831.65.
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