hobbs
Senate Republicans Advance Legislation Aimed At Gov. Hobbs’ ‘Pay To Play’ Contracts

February 20, 2026

By Staff Reporter |

The Republican-led Arizona Senate is advancing legislation aimed at increasing oversight of Gov. Katie Hobbs’ handling of contracts. 

On Wednesday, the Senate Regulatory Affairs and Government Efficiency Committee passed Senate Bill 1186 (SB1186) along party lines: Republicans in support, Democrats against.

State Sen. Mitzi Epstein (D-LD12) said she opposed the bill because it wasn’t “ready for primetime.” Epstein raised a concern that private companies could be impacted under the current way the bill is written. Epstein was the only one to explain her vote. 

“Influence peddling is a bad thing, and we want to make sure in all aspects of government, including in this body, that people cannot pay for play,” said Epstein. 

The bill would require companies currently holding or vying for state contracts or grants to disclose anything of value provided within the preceding five years to the governor, including anything beneficial provided to campaign or inauguration-related activities or outside organizations supporting or opposing the governor politically. 

It would also prohibit state agencies and state employees from destroying any notes taken during evaluation of a company responding to a request for proposal on a state contract or grant. Should any state agency or state employee destroy their notes, any agreed-upon contracts could be solicited again.

Gov. Hobbs remains under legislative investigation over allegations of a “pay-to-play” relationship with Sunshine Residential Homes. That company received a unique rate increase following their donations to Hobbs. This legislation was inspired by that ongoing controversy. 

Senate leadership to include President Warren Petersen (R-LD14), President Pro Tempore T.J. Shope (R-LD16), Majority Whip Frank Carroll (R-LD28), and Majority Leader John Kavanagh (R-LD3) all issued statements endorsing the legislation preceding the committee vote.

“State government has a responsibility to ensure taxpayer dollars are awarded through a fair and competitive process people can trust,” said Petersen. “When billions in public funds are at stake, the rules must be clear, consistent, and focused on delivering the best value for Arizona families.”

“After vetoing our bill last year, the Governor came back this session with her own proposal, but it still leaves the biggest gap untouched,” said Shope. “Her plan focuses on releasing information after contracts are awarded. Our bill requires transparency before decisions are made, when it actually matters.”

“The scandals we’ve seen show what happens when government oversight fails,” said Carroll. “When billions of taxpayer dollars are being spent, mistakes or favoritism don’t just stay inside government, they affect services families rely on and erode public confidence.”

“Arizona’s contracting laws were written for a different era and leave gaps that agencies can’t effectively police today,” said Kavanagh. “SB 1186 modernizes the rules by setting clear disclosure standards and establishing enforceable safeguards that strengthen the contracting process itself.”

Earlier this month the bipartisan advisory team put together by the Republican-led Arizona House brought on outside counsel from out of state for an independent investigation of the connection between Hobbs and Sunshine Residential Homes. The counsel, Justin Smith, is representing President Donald Trump in his defamation lawsuit against E. Jean Carroll; Smith’s law group was founded by Trump’s solicitor general, D. John Sauer.

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