What SB 490 does
An act to amend Sections 11833.05 and 11834.31 of the Health and Safety Code, relating to public health.
Existing law provides for the licensure and regulation of adult alcohol or other drug recovery or treatment facilities by the State Department of Public Health and prohibits the operation of one of those facilities without a current valid license. Existing law requires the department, if a facility is alleged to be in violation of that prohibition, to conduct a site visit to investigate the allegation. Existing law requires, if the department’s employee or agent finds evidence that the facility is providing services without a license, the employee or agent to take specified actions, including, among others, submitting the findings of the investigation to the department and issuing a written notice to the facility that includes the date by which the facility is required to cease providing services.
Existing law establishes the Medi-Cal program, which is administered by the State Department of Health Care Services and under which qualified low-income individuals receive health care services, through fee-for-service or managed care delivery systems. The Medi-Cal program is, in part, governed and funded by federal Medicaid program provisions. Existing law establishes the Drug Medi-Cal Treatment Program (Drug Medi-Cal) and authorizes the department to enter into a Drug Medi-Cal contract with each county for the provision of alcohol and drug use services within the county service area.
This bill would require the department, if it determines it has jurisdiction over the allegation, to assign the complaint to an analyst within 10 days of receiving the allegation and, except as specified, complete the investigation within 120 days of assigning the complaint. The bill would require the department, if it receives a complaint that does not fall under its jurisdiction, to notify, to the extent feasible, the complainant that it does not investigate that type of complaint. The bill would require the employee or agent to provide their findings to the department and would require the department to issue the notice described above within 10 days of the employee or agency submitting their findings and to conduct a followup site visit to determine whether the facility has ceased providing services as required. The bill would authorize, in counties that elect to administer the Drug Medi-Cal organized delivery system and that provide optional recovery housing services, the county behavioral health agency to request approval from the department to conduct a site visit of a recovery residence that the county contracts with that is alleged to be operating without a license. The bill would permit the department to approve that request in certain circumstances, including that the department has sufficient evidence to substantiate the allegation.
Existing law requires licensed adult alcohol or other drug recovery or treatment facilities and certified alcohol or other drug programs to disclose to the department whether any of its agents, partners, directors, officers, or owners has a specified interest in a recovery residence and requires the department to take action against an unlicensed facility that is disclosed as a recovery residence.
This bill would require the department, if it takes action against a recovery residence pursuant to that provision, to conduct a site visit of a certified program or licensed facility that has disclosed the specified interest in the recovery residence. The bill would also require, no later than July 15, 2027, and by July 15 each year thereafter, that all programs certified or facilities licensed by the department submit to the department a report of all money transfers between the program or facility and a recovery residence during the previous fiscal year, in order to detect patient brokering, illicit kickbacks, or unethical inducements that harm patients. The bill would require the department to analyze that data and develop guidelines for permissible and impermissible transfers.
Summary from the Legislative Counsel's Digest of the enrolled text, August 30, 2026. Read the full text on leginfo.
How it got here
Senator Umberg introduced SB 490 on February 19, 2025, with coauthors Assembly Members Patel and Schiavo. The text was amended 4 times, 2 in the Assembly and 2 in the Senate, and heard in 6 committee hearings before its final floor votes.
- Senate Floor, January 26, 2026: 39 ayes, 0 noes.
- Assembly Floor, August 25, 2026: 77 ayes, 0 noes.
- Senate Floor, August 27, 2026: 40 ayes, 0 noes.
Committee votes along the way:
- Senate Health, January 14, 2026: Do pass, but first be re-referred to the Committee on [Appropriations], 9-0.
- Senate Appropriations, January 20, 2026: Placed on suspense file, 7-0.
- Senate Appropriations, January 22, 2026: Do pass, 7-0.
- Assembly Health, June 30, 2026: Do pass as amended and be re-referred to the Committee on [Appropriations], 16-0.
- Assembly Appropriations, August 13, 2026: Do pass., 15-0.
Who supports and opposes SB 490
The Senate Floor Analyses analysis dated August 25, 2026 lists 20 organizations in support and 3 in opposition. When Senate Health first listed positions on January 12, 2026, the count was 1 in support and 1 opposed. By the Senate Floor Analyses analysis of August 25, 2026 it was 20 to 3.
In support: League of California Cities (sponsor); Association of California Cities – Orange County; Association of California Life & Health Insurance Companies; California Association of Health Plans; City of Beverly Hills; City of Buena Park; City of Brea; City of Carlsbard; and 12 more.
Opposed: California Behavioral Health Association; California Behavioral Health Planning Council; County Behavioral Health Directors Association.
Read the Senate Floor Analyses analysis.
What happens next
It reached the Governor's desk on September 2, 2026. Bills presented after the Legislature adjourned on August 31 must be signed or vetoed within thirty days.
The Governor can sign the bill, veto it, or let it become law without a signature. Until the decision, sign and veto request letters are the remaining channel, and the Department of Finance's enrolled bill report carries weight on anything with a fiscal effect. If signed, most provisions take effect January 1, and implementation moves to the agencies named in the bill.
What it means for small business organizations
Two decisions follow from a bill at this stage. The first is whether to weigh in with the Governor's office before the thirty-day window closes. The second is how to prepare for implementation if it becomes law: which agency writes the rules, when the comment period opens, and which obligations begin January 1.
The small business group at Capitol Axis handles that for small business clients.
Questions about SB 490
What does SB 490 do?
This bill would require the department, if it determines it has jurisdiction over the allegation, to assign the complaint to an analyst within 10 days of receiving the allegation and, except as specified, complete the investigation within 120 days of assigning the complaint. The bill would require the department, if it receives a complaint that does not fall under its jurisdiction, to notify, to the extent feasible, the complainant that it does not investigate that type of complaint. The bill would require the employee or agent to provide their findings to the department and would require the
Has SB 490 passed the California Legislature?
It reached the Governor's desk on September 2, 2026. Bills presented after the Legislature adjourned on August 31 must be signed or vetoed within thirty days.
Who supports and opposes SB 490?
The Senate Floor Analyses analysis dated August 25, 2026 lists 20 organizations in support and 3 in opposition. Supporters include League of California Cities (sponsor); Association of California Cities – Orange County; Association of California Life & Health Insurance Companies. Opponents include California Behavioral Health Association; California Behavioral Health Planning Council; County Behavioral Health Directors Association.
What happens next with SB 490?
The Governor can sign it, veto it, or let it become law without a signature. Until then, sign and veto request letters are the remaining channel, and the Department of Finance's enrolled bill report carries weight on anything with a fiscal effect.