Amended  IN  Senate  May 16, 2024
Amended  IN  Senate  April 29, 2024
Amended  IN  Senate  April 15, 2024
Amended  IN  Senate  March 20, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill
No. 1339

Introduced by Senator Allen

February 16, 2024

An act to add Chapter 7.6 (commencing with Section 11834.75) to Part 2 of Division 10.5 of the Health and Safety Code, relating to supportive community residences.


LEGISLATIVE COUNSEL'S DIGEST


SB 1339, as amended, Allen. Supportive community residences.
Existing law generally requires the State Department of Public Health to license, inspect, and regulate health facilities, defined to include, among other types of health facilities, an acute psychiatric hospital. Existing law requires the State Department of Health Care Services to license and establish regulations for psychiatric residential treatment facilities.
Existing law requires the State Department of Health Care Services to license and regulate facilities that provide residential nonmedical services to adults who are recovering from problems related to alcohol, drug, or alcohol and drug misuse or abuse, and who need alcohol, drug, or alcohol and drug recovery treatment or detoxification services. Existing law also requires the department to implement a voluntary certification program for alcohol and other drug treatment recovery services.
Existing law, the California Community Care Facilities Act, generally provides for the licensing and regulation of community care facilities by the State Department of Social Services, to provide 24-hour nonmedical care of persons in need of personal services, supervision, or assistance. Existing regulation includes an adult residential facility as a community care facility for those purposes.
This bill would require the State Department of Health Care Services (department), by January 1, 2027, and in consultation with relevant public agencies and stakeholders, to establish, and provide for the administration of, a voluntary certification program for supportive community residences. The bill would define a “supportive community residence” as specified residential dwellings providing housing for adults with a substance use disorder, mental health diagnosis, or dual diagnosis seeking a cooperative living arrangement that does not provide medical care or a level of support for activities of daily living that require state licensing. The bill would require the certification program to include standards and procedures for operation, such as types of certifications needed and services navigation, and procedures and penalties for enforcing laws and regulations governing supportive community residences. The bill also would require the department to create and maintain a searchable online database of certified facilities, which would include specified contact and complaint information for those residences.
The bill would require the department to adopt or amend regulations to require referring entities to provide information relating to the license or certification status of community care facilities and supportive community residences to individuals with a substance use disorder, mental health diagnosis, or dual diagnosis, and to report any suspected fraudulent license or certification identified during verification to the department. The bill would define “referring entity” to include a state or local entity, or a state-regulated entity that provides adults with substance use disorders or mental health diagnoses with referrals to, or that authorizes health care coverage for, services provided by supportive community residences or licensed community care residential facilities. The bill also would require the regulations to include enforcement methods for willful and repeated violations of those requirements by referring entities.
The bill would prohibit a supportive community residence from providing any licensed services onsite, including, but not limited to, incidental medical services. The bill would authorize the department to charge a fee for certification of supportive community residences in an amount not to exceed the reasonable cost of administering the program, not to exceed $1,000, $2,000, and would establish the Supportive Community Residence Program Fund for collection of the fee. The bill would require the department, by January 1, 2027, in consultation with relevant state agencies and other stakeholders, to submit a report to the Legislature including recommendations for statutory changes needed to improve access to quality community-based and noninstitutional settings for people with substance use disorders or mental health diagnoses. Under the bill, a certification would be valid for a period of 2 years and the bill would authorize the department to charge a recertification fee not to exceed $500.
By placing new requirements on local agencies acting as referring entities, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 The Legislature finds and declares all of the following:
(a) The prevalence of substance use disorders and mental health diagnoses have been increasing, exacerbated by the COVID-19 pandemic.
(b) There exists is a shortage of beds within facilities providing inpatient or residential mental health and substance use disorder treatment.
(c) Residential homes serving people with substance use disorders or mental health diagnoses at a level below that which requires licensing lack state standards and oversight.
(d) Many consumers with substance use disorders or mental health diagnoses have disabling conditions. These consumers and their families are vulnerable, and at risk of not receiving the care they need and deserve and being victims of fraud.
(e) Empowering people to have autonomy over their mental health care instills personal dignity, value, and respect, and results in better health outcomes.
(f) There exists is a need to improve access to quality community-based and noninstitutional settings for people with substance use disorders or mental health diagnoses.

SEC. 2.

 Chapter 7.6 (commencing with Section 11834.75) is added to Part 2 of Division 10.5 of the Health and Safety Code, to read:
CHAPTER  7.6. Supportive Community Residences

11834.75.
 The following definitions apply for purposes of this chapter:
(a) “Department” means the State Department of Health Care Services.
(b) “Referring entity” means a state or local entity, or a state-regulated entity that does either of the following:
(1) Discharges, directs, or provides a list of one or more supportive community residences or community care-licensed facilities for adults with a substance use disorder or mental health diagnosis.
(2) Preauthorizes or authorizes the health care coverage of services provided by supportive community residences or licensed community care residential facilities.
(c) (1) “Supportive community residence” means any of the following residential dwellings providing housing for adults with a substance use disorder, mental health diagnosis, or dual diagnosis seeking a cooperative living arrangement that does not provide medical care or a level of support for activities of daily living that require state licensing:
(A) Recovery residences, as defined in subdivision (f) of Section 11833.05, that serve people in recovery for a substance use disorder.
(B) Mental health recovery residences that serve people in recovery for a mental health diagnosis.
(C) Mixed recovery residences that serve people in recovery for a dual diagnosis of both a substance use disorder and a mental health diagnosis.
(2) Supportive community residences may be categorized as any of the following:
(A) “Abstinence-based” residences that serve people who desire a cooperative housing setting that prioritizes and requires abstinence from alcohol and other substances.
(B) “Non-abstinence-based” residences that serve people who desire a cooperative housing setting that does not require abstinence from alcohol and other substances.
(C) “Housing First compliant” residences that satisfy the core components of Housing First pursuant to Section 8255 of the Welfare and Institutions Code.
(D) “Non-Housing First compliant” residences that have requirements for abstinence or medication compliance or other restrictions as a condition of housing.
(d) “Trauma informed” means an approach to care guided by the principles of safety, trustworthiness and transparency, peer support, collaboration and mutuality, empowerment and choice, and cultural, historical, and gender issues.

11834.76.
 By January 1, 2027, the department, in consultation with relevant state and county agencies, and other stakeholders, shall do all of the following:
(a) Establish and provide for the administration of a voluntary certification program for supportive community residences. The certification program shall include all of the following:
(1) Standards and procedures for operation of the certification program that consider, at a minimum, all of the following:
(A) Types of certifications needed for the various types of supportive community residences outlined in subdivision (c) of Section 11834.75.
(B) Nationally recognized standards of operation.
(C) Target populations and diversity of communities served.
(D) Evidence-based, trauma-informed, and culturally sensitive environments.
(E) Tenant rights and protections.
(F) Access to, and security of, residents’ medication.
(G) Services navigation.
(H) Peer support services.
(I) Cleanliness, privacy, physical design, and safety.
(J) Relocation assistance.
(2) Methods for filing and investigating complaints within a reasonable timeframe.
(3) Procedures and penalties for enforcing laws and regulations governing supportive community residences that do not remediate deficiencies within the designated timeframe, conditions under which a supportive community residence may be decertified, and the means by which a supportive community residence may regain certification.
(4) Technical assistance to assist owners, operators, house managers, and other supportive community residence staff with respect to the following:
(A) Developing an understanding of the applicable regulations and statutes.
(B) Completing the application process for certification.
(C) Answering questions regarding day-to-day operation.
(b) Create and maintain a searchable online database of certified facilities that meets the following requirements:
(1) To preserve privacy, the database shall not provide the address or specific location of a supportive community residence other than the city, ZIP Code, or both.
(2) Provides telephone and email contact information.
(3) Provides a record of any substantive and validated complaints filed against a supportive community residence, findings after investigation of those complaints, and the time it took from the date of filing until the complaint is resolved.
(c) Adopt or amend relevant regulations relating to referring entity practices, including:
(1) Requiring referring entities to provide the following information to individuals with a substance use disorder, mental health diagnosis, or dual diagnosis, as applicable:
(A) The verified community care or supportive community residence’s license or certification number.
(B) Contact information for the licensing or certifying agency. For purposes of this chapter, “verified” means that the license or certification that the entity holds is current and active, and is aligned with the services the entity is offering to provide.
(2) Report to the department any suspected fraudulent license or certification identified during verification.
(3) Establish when, and how frequently, a referring entity is required to verify licenses and certifications.
(4) Establish enforcement methods for willful and repeated violations of paragraphs (1) and (2) by referring entities, including imposition of administrative penalties, as appropriate.

11834.77.
 A supportive community residence shall not provide any licensed services onsite, including, but not limited to, incidental medical services as defined in Section 11834.026.

11834.78.
 (a) The department may charge a fee for certification of supportive community residences in an amount not to exceed the reasonable cost of administering the program, not to exceed one thousand dollars ($1,000). two thousand dollars ($2,000). A certification shall be valid for two years.
(b) The department may charge a fee for recertification of supportive community residences in an amount not to exceed the reasonable cost of administering the program, not to exceed five hundred dollars ($500).

(b)

(c) The Supportive Community Residence Program Fund is hereby established in the State Treasury. All fees collected in accordance with this division shall be deposited into the fund. The moneys in the fund shall be available upon appropriation by the Legislature for the purposes of supporting the certification activities of the department.

11834.79.

(a)By January 1, 2027, the department, in consultation with relevant state agencies and other stakeholders, shall submit a report to the Legislature that includes recommendations for statutory changes needed to improve access to quality community-based and noninstitutional settings for people with a substance use disorder, mental health diagnosis, or dual diagnosis.

(b)A report submitted pursuant to this section shall be submitted in compliance with Section 9795 of the Government Code.

SEC. 3.

 If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.