When I first read this, I suspected it was tent talk. I'm glad to see that everyone else agrees.
OP, I have to say that it's a good thing that your daughter told you about this, and expressed her disgust. Not sure I would have felt as comfortable telling my own mom about it. It sounds like she may have a good head on her shoulders!
I walk through San Francisco's worst neighborhood on my way to work, and it's heartbreaking how many people one sees just nodding off in the middle of the street, standing up. I've heard a few stories about mutual acquaintances getting hooked on heroin, but nothing too substantial for now.