Assemblymember Laurie Davies, Assemblymember Avelino Valencia, and the Southwest San Clemente Alliance (SWSCA) recently announced the passage of two bills, AB 2574 and AB 2081, which were signed into law by Gov. Gavin Newsom.
Authored by Davies and Valencia, these bills address vital issues within the addiction recovery industry, increasing transparency and cracking down on fraudulent practices. AB 2081, authored by Davies, mandates drug treatment programs to disclose disciplinary actions on their websites, increasing accountability and protecting vulnerable consumers from fraudulent providers. This bill requires homes that provide drug and alcohol abuse treatment to direct prospective patients to the Department of Health Care Services (DHCS) website, where a facility’s license may be confirmed, along with any notices of operating in violation of state law or regulations.
Meanwhile, AB 2574, authored by Valencia, will require recovery and treatment facilities to disclose any financial interests in recovery residences (sober living homes) to the DHCS, strengthening oversight and reducing conflicts of interest in the addiction recovery industry.
“The disclosure of this information will allow DHCS to provide effective oversight and to take actions against bad actors,” Valencia said.
Davies explained that the proposed bill originated from complaints and concerns raised by families in her constituency. She collaborated with the Department of Health Care Services (DHCS) to ensure the bill would be effective and financially feasible given the current deficit.
“I’ve been working with families and addressing the issue of sober living homes for almost 12 years now,” Davies said. “One of the main issues we’ve encountered is the lack of oversight. In Orange County alone, there are over 300 sober living homes, and across the state, there could be thousands. Yet, we only have 20 inspectors to oversee these facilities, which is nowhere near enough.”
Davies emphasized that one of the key goals is to ensure that when someone is searching for a place for their loved one, they will have access to information about the reputation of these sober living homes.
“Currently, many of them lack transparency on their websites,” Davies said. “The bottom line is that this initiative is designed to protect patients and their families. For years, countless vulnerable individuals have been at risk, and local residents also deserve assurance that their community is being taken care of.”
She expressed satisfaction that the bill passed unanimously in both the Assembly and Senate, facing no opposition in the committees, and that the governor signed it into law, marking a significant achievement and indicating that the legislative process had been successful.
Sarah Schneider, Founder of the Southwest San Clemente Alliance, emphasized the organization’s dedication to addressing community concerns.
“The Southwest San Clemente Alliance was formed in October after three potentially fraudulent homes were purchased in our area,” Schneider said. “To address this issue effectively, I activated a grassroots organization to gain community support. Although I didn’t have all the answers initially, I knew we needed a collaborative approach involving changes in state law and coordination with local municipalities.”
SWSCA’s strategy was twofold according to Schneider: first, they aimed to prevent the organization from operating in their neighborhood, and second, they focused on long-term legislative solutions.
“There are critical issues with fraudulent actors exploiting loopholes in laws about these homes,” Schneider added. “My biggest fear is that someone could get injured or die due to overlooked safety risks. For example, a new license was issued to an operator with a history of safety violations, allowing them to continue under different LLCs.
“Predatory companies exploit the lack of regulation, paying exorbitant rents—like $30,000 a month for a single-family home—making it impossible for families to compete. This pushes landlords to rent to businesses instead of families paying $3,000 to $5,000 a month. My primary concern is safety in our neighborhoods.”
She expressed further hope for the future, stating, “The community response has been one of gratitude and hope. … While we’re relieved that Governor Newsom passed these two bills, it’s disappointing that four out of six proposed bills were killed. … It’s disheartening that it took 15 to 20 years of known fraudulent behavior for just two bills to pass.”
Kalli Zapel, a resident on El Levante in San Clemente, expressed concerns about a rehabilitation house on her cul-de-sac, Oceans Luxury Rehab-Alcohol and Drug Rehab. While most patients and staff are generally fine, management issues have led to inadequate monitoring and undesirable activities.
“Generally speaking, the patients and most of the staff are fine. However, there are times when it seems ownership is not fully aware of what’s happening, or when management changes occur. As a result, there are occasions when undesirable activities happen that aren’t adequately monitored or followed up on,” Zapel said.
The facility, which previously closed due to violations like patient escapes and noise disturbances, has recently reopened. Since then, there have already been incidents, including patients wandering unsupervised and calls to 911.
“A good example is that the house on our street was closed down a little over a year ago due to violations I wasn’t fully aware of. While I’m not sure of the exact reasons, our experience showed poor operational management, with incidents like patients escaping, loud noises, yelling, welfare checks, and people being taken away in ambulances. It was clear that the residents weren’t being properly served there,” Zapel added.