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- By Elyse Wild
A new Arizona law increasing oversight of sober living homes faces criticism from a Native lawmaker and other advocates for not going far enough.
Signed on Friday, April 18, by Arizona Gov. Katie Hobbs, the legislation responds to a multi-billion-dollar scheme that victimized Native Americans through fraudulent drug and alcohol treatment.
Introduced by Republican Sen. Frank Carroll, SB1308 changes the definition and licensing standards for sober living homes and restricts patient brokering. The law gives new authority to the Arizona Department of Health and Human Services to conduct on-site inspections of sober living homes annually or before issuing and renewing a license. The new law also empowers the state agency to conduct an investigation within 30 days of receiving complaints about conditions or treatment that may violate compliance with standards.
Between 2019 and 2023, thousands of Native Americans in Arizona and as far away as Montana reported being kidnapped – forced into unmarked SUVs and vans under false pretenses — given alcohol and drugs such as fentanyl or methamphetamine, subjected to fraudulent mental health services, held prisoner, and eventually ejected onto the street or dropped off in remote rural areas with no means of transportation.
Victims were enrolled in the American Indian Health Program through the state’s Medicaid agency, the Arizona Health Care Cost Containment System (AHCCS). The homes billed AHCCS for patient care in excess of $1,000 per day per patient. Dozens died in the homes, and many remain missing. The mass fraud came to light in May 2023 when state officials held a press conference announcing they would take action against 100 fraudulent providers involved in the scheme. By August, the number grew to 131 and by May 2024, it ballooned to 375 providers.
The legislation passed the Arizona House of Representatives by a supermajority vote of 42-10. Representative Theresa Hatathlie (Diné), whose niece died in one of the fraudulent homes, was among those who voted no.
Last year, lawmakers shot down a bill sponsored by Hatathlie that targeted sober living home oversight and licensing. At a Senate floor session last month, Hatathlie aired her frustrations with the lack of structural changes and toothless language in SB1308, pointing specifically to the Arizona Corporation Commission (ACC), which licenses treatment facilities. Her legislation included accountability for the ACC, and she accused Rep. Matt Gress — who worked as a policy adviser to former ACC Commissioner Andy Tobin in 2016 and 2017— killed the bill due to the language related to the commission.
She said SB1308 was misrepresented to tribal leaders as the same bill she authored in 2024.
“So this bill, compared to last year's bill, is black and white,” she said at the floor session. “To say it's good enough now, when we still have people dying and getting lost in the system, is a disservice to human lives. These are my relatives. These are my family members.”
Reva Stewart (Diné) runs Turtle Island Warriors, a Phoenix-based nonprofit that offers assistance to Native people who have been victimized by the scam. She told Native News Online that the law targets licensed facilities — as opposed to those acting outside of the system — and continues to give oversight authority to the government agencies that for years failed to act when presented evidence of the crisis. The scam continues today, she says, with Native people as far away as New York being lured to unlicensed sober living homes.
“A lot of our Native relatives are still going missing, and they're still being recruited into these homes,” Steward said. “These recruiters are blatantly going to the parks, just like at the beginning. It has not stopped.”
Fraudsters have expanded to target health plans purchased through the marketplace, Stewart said.
“They are utilizing the marketplace plans by signing people up for them,” she said. “We can get you on a plan, put you in a (sober living) home and pay the premium. We’ve had so many reports of our Native relatives being put on a Blue Cross Blue Shield Plan in a home, and getting kicked out as soon as the (operators) get the money.”
While the scam has so far cost the state of Arizona $2.8 billion dollars, Stewart said the human toll is far greater.
“This is a lot of lives (that have been) affected,” she said. “And nobody's being held accountable for the humanitarian part.”
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