Majority Whip Frank Carroll’s Senate bill SB 1308 was signed into law by Governor Katie Hobbs on Friday, ensuring that Arizona’s Department of Health Services (DHS) has the tools needed to address the rampant fraud and abuse in the State’s sober living facilities. The Arizona Globe first reported on the bill’s passage on March 10, 2025.

SB 1308 modifies current DHS requirements for licensing, oversight, and regulation of residential facilities that provide alcohol and substance abuse assistance to Arizonans. The bill, which also offers stringent guidance for facility inspections, compliance penalties, and tighter oversight by the State, was necessitated by the growth of an industry that had previously been relatively unregulated.

Carroll addressed his belief that the bill will help reduce losses to taxpayers from fraud: “At long last, the State of Arizona has taken meaningful action to protect vulnerable individuals seeking refuge and recovery. Over the years, there have been many frightening stories about fraud and abuse at these homes thanks to the lack of regulation and licensing. This new law will protect the men and women residing at these homes, put bad actors on notice, and end the gravy train of taxpayer funds to those attempting to exploit the system for financial gain. I’m thankful for everyone who supported this legislation as it made its way through the House and Senate to the Governor’s desk.”

The Arizona Health Care Cost Containment System (AHCCCS) estimates that “sober living” fraud costs Arizona taxpayers in the neighborhood of $2.5 billion.