Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Substance Use Treatment Oversight topic
No spam. Unsubscribe anytime.
Committee hears SB 43 to regulate addiction referral agencies and curb so‑called patient brokering
Summary
SB 43 would require transparency and financial disclosures for referral agencies that direct people to substance‑use‑disorder treatment and sober living, a measure supporters say will curb patient brokering and trafficking of people into unregulated facilities.
Senator Umberg (presenting) opened discussion on SB 43, legislation designed to strengthen oversight of addiction referral agencies and curb patient brokering practices that have trafficked vulnerable people into unlicensed or unregulated sober living homes and treatment programs.
Sherry Daley of the California Consortium of Addiction Programs and Professionals said referral registries and online directories sometimes use misleading listings, fake licensing claims, and hidden kickbacks to send patients to providers that profit from placement rather than clinical need. “SB 43 simply requires that group advertising and referral agencies in our industry meet the same requirements that chiropractors and dentists do,” Daley said, describing a proposal to add transparency and financial disclosure requirements and to give enforcement authority to the Department of Justice.
A person with lived experience, Sequoia Thiessen, described being “held hostage” in an exploitative sober‑living scheme and urged lawmakers to adopt protections to stop “body brokering.” Law‑enforcement and public‑safety stakeholders including the California Police Chiefs Association and advocacy groups such as Shatterproof testified in support.
Supporters said the bill would require referral agencies to disclose financial relationships, prohibit deceptive online listings, and permit investigative and enforcement actions to shut down brokers who profit from moving patients across state lines to facilities lacking clinical necessity.
No witnesses in opposition appeared in the transcript excerpt. Committee members thanked witnesses and the author and indicated the committee would consider the measure for action; no final vote was recorded in the excerpt.
