New California Transparency Requirements for Substance Abuse Treatment Centers

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Beginning January 1, 2022, California licensed residential substance abuse treatment facilities will be required to disclose certain licensing information to the public.  SB 541 adds Health and Safety Code section 11831.12, which requires residential alcohol or drug abuse treatment facilities to undertake the following:

  1. Disclose their license number and date of expiration to anyone who inquires in writing, verbally, electronically or any other way.
  2. Clearly and conspicuously post on their website that they are licensed by the State Department of Health Care Services (DHCS), and include a link to the DHCS website that contains the facility’s license number and expiration date.
  3. Clearly and conspicuously include their license number and expiration date in any print, audio or electronic advertising or marketing.  This requirement can be met by including the following language with a link to the DHCS website that contains the facilities’ license number and expiration date: “Licensed by the State Department of Health Care Services.”

Here’s the link to the DHCS website where licensing information can be found—this link should be posted on the facility’s website and may be included on advertising or marketing materials.

The new requirements are intended to enhance transparency relating to substance abuse treatment centers and reduce fraudulent billing and insurance losses.  The full text and history of the bill is accessible here  https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB541

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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