FOR IMMEDIATE RELEASE
Tuesday, February 4, 2025

Concerning Practices Revealed During Probe on Hobbs Administration Conflict of Interest Cases Prompt New Legislation
PHOENIX, ARIZONA— Concerning practices revealed during a probe on how the Hobbs Administration awarded $15 billion worth of state Medicaid contracts, as well as large rate increases to a troubled group home, are prompting new legislation to ensure the state's procurement process moving forward is lawful, transparent, fair, and keeps Arizonans' best interests at the forefront of decision-making.
In August of last year, an administrative law judge concluded the Arizona Health Care Cost Containment System (AHCCCS) improperly awarded contracts for healthcare services for 26,000 elderly and physically disabled individuals enrolled in the Arizona Long Term Care System. The determination was based on several factors, including violations of statutes and rules by AHCCCS, prejudice, a lack of transparency, contract awards based on best interests of the agency and not the state, an arbitrary and flawed ranking system of bid proposals, as well as deceptive criteria provided by AHCCCS to health care companies on the evaluations of their bid proposals.
Two months prior, local media exposed Governor Katie Hobbs for rewarding a dysfunctional group home, Sunshine Residential, millions in taxpayer dollars following the acceptance of campaign donations made by the provider to both Hobbs and the Arizona Democratic Party.
This week, Senator T.J. introduced SB 1612 to hold the Executive Branch accountable and prevent any future conflicts of interest from arising within the state procurement process. The bill removes an exemption allowing AHCCCS to create their own procurement code. It also prohibits an agency and state employees from destroying notes and documents created during a request for proposal (RFP). Additionally, the bill requires anyone responding to a state issued RFP or applying for a state administered grant to disclose any donations made to the Governor and campaign affiliates.
"The Hobbs Administration has a track record of engaging in questionable and unethical practices where favoritism is given, using taxpayer dollars, to those who are close to or have provided benefits to the Governor, her cabinet, and her allies," said Senator Shope. "This legislation should help address these scandals and prevent future unfair advantages from being provided. Arizonans expect their elected officials to make decisions based on what's best for the state and its citizens; not what's best for their own personal agendas and political bank accounts."
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For more information, contact:
Kim Quintero
Director of Communications | Arizona State Senate Republican Caucus
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