Fox Guards the Henhouse: Hobbs Vetoes Legislation Requiring Accountability, Transparency from Executive Branch When Handling State Medicaid Contracts
- Arizona Senate Republicans
- May 5
- 2 min read
FOR IMMEDIATE RELEASE
Monday, May 5, 2025
Fox Guards the Henhouse: Hobbs Vetoes Legislation Requiring Accountability, Transparency from Executive Branch When Handling State Medicaid Contracts
PHOENIX, ARIZONA— Senate President Pro Tempore T.J. Shope is responding to a disturbing veto issued late Friday by Governor Katie Hobbs on legislation requiring greater accountability and transparency from the Executive Branch when handling state Medicaid contracts.
"Governor Hobbs' veto of SB 1612 is an alarming example of the fox guarding the henhouse," said President Pro Tempore Shope. "I drafted this legislation in response to potential wrongdoing revealed from a probe on how the Hobbs administration provided an unfair advantage when awarding $15 billion worth of state Medicaid contracts, as well as large rate increases to a troubled Department of Child Safety (DCS) group home. She appears to be providing favoritism to her friends, allies, and donors using taxpayer dollars, and I provided a solution to address these potential conflicts of interest. Had she signed this bill into law, she would have given the citizens of Arizona greater confidence in state government acting in their best interests- and not the best interests of political campaign coffers."
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 DCS 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.
SB 1612 would have removed an exemption allowing AHCCCS to create their own procurement code. It also prohibited an agency and state employees from destroying notes and documents created during a request for proposal (RFP). Additionally, the bill required 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.
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For more information, contact:
Kim Quintero
Director of Communications | Arizona State Senate Republican Caucus
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