Report highlights overconcentration in residential areas and delays in state oversight

By Caroline Grinder, legislative affairs lobbyist

The state auditor this week released a long-anticipated report on drug and alcohol treatment facilities in California requested by Asm. Diane Dixon last year. The findings validate Cal Cities' concerns - and successful push for more oversight - and could result in new legislative proposals next year.

The report confirmed what cities across California have been saying for years: There is an overconcentration of recovery housing in residential neighborhoods, specifically in Orange County. The audit highlights several examples of operators opening multiple small facilities on the same block to avoid local zoning restrictions. The result is campus-style recovery housing in residential neighborhoods that undermines the goal of the residential treatment - to integrate residents of these facilities into the community.

The audit also found that the Department of Health Care Services (DHCS) does not always promptly or thoroughly investigate complaints. Twenty-two of the 60 investigations the audit reviewed took over a year to complete. In 10 of those investigations, it took the department more than 600 days. When DHCS does not complete these investigations expeditiously, problems go undetected, threatening the health and safety of those receiving care.

There were also delays with compliance inspections, with the department conducting just half of the 26 reviewed inspections on time. Moreover, the department did not always follow up on unlicensed facilities that were unlawfully advertising or providing services that require licensure. The department only conducted seven site visits for 15 related complaints, despite having a policy to perform site visits for all unlicensed facility complaints.

The findings confirm Cal Cities' worries that the department does not have the capacity to enforce compliance with state licensure law and protect patients when problems arise. Cal Cities worked to address these issues through two sponsored bills this year. SB 913 (Umberg) would have allowed cities to collaborate with the state to investigate and enforce existing licensing laws. AB 2121 (Dixon) would have implemented distance requirements consistent with those for other group homes. Unfortunately, lawmakers held both measures.

Gov. Gavin Newsom did, however, sign two major recovery housing bills sponsored by Cal Cities. The two measures, AB 2081 (Davies) and AB 2574 (Valencia) are the results of nearly a decade of advocacy. Both will provide much-needed transparency and hold providers accountable for high-quality treatment and care.

Cal Cities hopes the audit results will lead to several legislative proposals next year and looks forward to working collaboratively on bills that address the audit recommendations and protect patients and residents. A fact sheet summing up the audit is available online.