Arizona lawmakers are trying to crack down on Medicaid fraud by imposing new regulations on sober living homes. However, the senator who brought this issue to lawmakers four years ago isn’t happy with the proposal.

A divided state Senate on Tuesday passed a proposal to increase oversight on the homes.

It’s an effort to rein in a scandal that has cost the state an estimated $2.8 billion. Scammers charged the state for services they didn’t provide and targeted Native Americans, many of whom died in the fake care facilities.

The Senate measure — which would increase requirements on licensing, oversight and regulation of sober living homes by the state Department of Health Services — advanced on Tuesday despite opposition led by Sen. Theresa Hatathlie (D-Coalmine Mesa).

“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,” Hatathlie said.

Hatathlie, a Native American, represents a largely tribal area of Northern Arizona, and Native Americans were the main target of the fraud.

The bill is pushed by Sen. Frank Carroll (R-Sun City West). He tried a different version of this bill last session, but it didn’t survive.

Last year, Hatathlie also sponsored a bill to regulate fraudulent sober living homes that have targeted Native American communities, but other Democrats voted with some Republicans and struck it down in a House committee .

Legitimate sober living facilities pushed back on lawmakers’ ideas last year, which they said would overregulate the industry at an enormous cost.

Carroll’s bill would require DHS to inspect sober living homes and it would require staff at sober living homes to get fingerprinted.

A sober living home out of compliance can face suspension and lose its license. Carroll’s bill would increase the monetary penalty for noncompliant sober living homes.

Other requirements in the bill would include new health and safety standards in homes and notification to DHS of any serious incidents. It would also clarify the number of residents allowed per facility and require that DHS site visits before allowing licenses. Finally, it would require DHS to conduct investigations after a complaint.

Hatathlie argued that Carroll’s bill doesn’t do enough to stop the problem.

“Here we’re just passing the buck. And with that I still vote no. I have a feeling that we’re still going to be having this conversation next year,” she told her colleagues.

The bill passed 20-7 with four Democrats and three Republicans in opposition.

The Attorney General’s Office has caught and prosecuted dozens of bad actors. Many fake sober living homes have been shut down, but some still pop up.

Because of the issue, the state is the subject of a class action lawsuit . The plaintiffs estimate 2,000 people died in fake sober living homes.

The League of Arizona Cities and Towns supports Carroll’s bill as the fraudulent sober living homes have negatively impacted many communities.

“For too long, I have heard frightening stories about fraud and abuse at these homes thanks to the lack of regulation and licensing. This bill puts bad actors on notice and ends the gravy train of taxpayer dollars to those attempting to milk the system for easy money,” Carroll said in a statement.

Hatathlie wants any proposed solution to also include changes to the Arizona Corporation Commission to ensure that fake homes aren’t considered to be in good standing. She also wants the state Department of Insurance and Financial Institutions to be required to verify whether sober living homes are legitimate.