By Staff Reporter |
Gov. Katie Hobbs vetoed legislation that would have established financial transparency requirements tied to an alleged pay-to-play scandal involving her administration.
Hobbs called the legislation, SB 1186, a “political stunt” against her in a veto letter. The governor issued her veto last Friday as part of her office’s regular legislative action updates.
The governor also claimed that her proposed amendment to the financial disclosure reform bill — carried by Senate Minority Leader Priya Sundareshan (D-LD18) — was superior to what was vetoed by her.
“As I have made clear, this proposal is a political stunt that applies only to one elected official, when what we really need is real transparency and accountability for all elected officials, campaigns, and affiliated political committees,” said Hobbs. “Transparency and accountability are priorities I have acted on from day one.”
The Hobbs-Sundareshan amendment would have restricted lawmakers from receiving donations from state contract bidders.
Senate President Pro Tempore T.J. Shope (R-LD16), the bill sponsor, explained to Capitol Media Services that the governor’s office, not the legislature, handles procurement, and that the amendment would have weakened the legislation.
SB 1186 would have required companies holding or seeking state contracts and certain grants to disclose anything of value provided in the preceding five years to the governor or the governor’s campaign-related entities, inaugural funds, joint fundraising committees, and organizations supporting the governor or opposing the governor’s political opponents.
The bill also would have prohibited state agencies and employees from destroying contract proposal evaluation notes. Contracts tied to improperly destroyed records would be subject to resolicitation.
Multiple entities are investigating Hobbs for the alleged pay-to-play scheme, which involved $400,000 in campaign donations from group home operator Sunshine Residential Homes and a unique, multibillion-dollar rate increase contract nearly 40 percent above the average for other peer contractors, as awarded by the Arizona Health Care Cost Containment System (AHCCCS).
Hobbs was also the only Arizona candidate to receive contributions from Sunshine Residential Homes CEO Simon Kottoor and his wife, Elizabeth Kottoor, during the 2022 and 2024 election cycles.
Several investigations into this alleged scheme are occurring simultaneously: one by Attorney General Kris Mayes, one by Maricopa County Attorney Rachel Mitchell and Auditor General Lindsey Perry, and one by an advisory team within the Arizona House.
The agency told Capitol Media Services that the contract occurred because Sunshine Residential Homes threatened to increase intake of migrant children at the expense of the state’s foster children if it didn’t receive additional funding.
The Arizona Senate GOP stated in a press release that Hobbs had rejected essential safeguards to prevent government officials from rewarding financial supporters with taxpayer-funded contracts.
Shope accused Hobbs of denying Arizona taxpayers the right to transparency from their elected leaders.
“Arizona families work hard for every dollar they send to the government. They have every right to know whether companies seeking millions or even billions of taxpayer dollars have financial or political ties to the Governor’s inner circle before contracts are awarded, not after another scandal makes headlines,” said Shope. “If state contracting decisions are truly being made fairly and on merit alone, transparency should not be controversial.”
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