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Bill aims to tighten oversight of unlicensed sober-living treatment after state audit

Assembly Health Committee · June 30, 2026
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Summary

SB 490 would set timelines for the Department of Health Care Services to investigate alleged unlicensed treatment providers and allow counties to step in if DHCS misses deadlines; cities and survivor advocates testified to exploitation risks while county agencies raised jurisdictional concerns.

Senator Umberg presented SB 490 to institute statutory timelines for DHCS to assign and complete investigations of alleged unlicensed residential-treatment providers and to authorize counties to request authority to conduct site visits if timelines are not met. The bill reflects recommendations from a recent state audit that found gaps in DHCS oversight.

Kristen Maas, an Anaheim city council member, and survivor advocate Sequoia Thiessen described exploitation, trafficking-like practices and billing abuses at some unlicensed facilities. County behavioral health representatives expressed concern that counties lack jurisdiction or resources and warned of potential unfunded workload and liability if asked to step in. The committee adopted amendments in the analysis and moved the bill, as amended, to Appropriations.