GOP Lawmakers Deliver Government Transparency Bill To Hobbs Amid Pay-To-Play Allegations
By Staff Reporter |
Arizona’s Republican state lawmakers are challenging Gov. Katie Hobbs to sign into law a government transparency bill amid the ongoing “pay-to-play” scandal involving the governor.
This past week, the Republican-led legislature sent SB 1186 to Hobbs’ desk. The legislation was inspired partly by ongoing legal challenges to the legality of the Arizona Medicaid program’s contract award system, and partly by ongoing allegations that Hobbs arranged for a unique rate increase to one of her top campaign donors.
Sunshine Residential Homes, a group home operator, donated more than $400,000 collectively to Hobbs’ gubernatorial campaign, Hobbs’ inaugural fund, and the Arizona Democratic Party.
Once Hobbs took office, the Arizona Department of Child Safety gave Sunshine Residential Homes a 30% rate increase, though no other group homes received rate increases and over a dozen contracts were terminated. This was reported initially by the Arizona Republic in 2024, along with another key detail indicating a close relationship between the governor and the company: Hobbs fine dining at the mansion of Sunshine Residential Homes CEO Simon Kottoor.
Hobbs’ inaugural fund — which reached nearly $2 million — was another funding source that was shrouded in secrecy. The inauguration event cost about $200,000, leaving the million-plus as a nonprofit source of funds to be spent at Hobbs’ discretion.
Attorney General Kris Mayes, a fellow Democrat, has maintained that her investigation into the alleged pay-to-play arrangement remains ongoing. Hobbs has yet to take Mayes up on her request for an interview.
The proposed legislation from Arizona’s Republican lawmakers would require companies that obtain state contracts or certain state grants to disclose anything of value provided in the previous five years to the governor, campaign-related entities, inaugural funds, and organizations making independent expenditures supporting or opposing the governor or their political opponents.
The legislation would also prohibit state agencies and employees from destroying notes created during the evaluation
The bill sponsor, State Sen. T.J. Shope (R-LD16), said financial disclosures should come before the state awards any contracts and grants, in order to ensure transparency and fairness in the process.
“Arizonans have watched one contracting controversy after another and are rightly asking whether political connections are influencing decisions involving billions of taxpayer dollars,” said Shope. “Governor Hobbs now has an opportunity to show Arizonans she supports transparency in government by signing this legislation.”
An advisory team was formed in the House to address this alleged pay-to-play scheme by Hobbs, and they also have their own investigation underway. The lawmakers hired outside counsel from out of state — Justin Smith with the Missouri-based James Otis Law Group — to conduct an independent investigation.
Smith led a battery and defamation lawsuit against E. Jean Carroll, an accuser of President Donald Trump.
That independent investigation initiated by lawmakers is ongoing. All findings from the outside counsel go to the advisory team and House leadership.
Maricopa County Attorney Rachel Mitchell and Auditor General Lindsey Perry are also coordinating on an investigation into the matter involving Hobbs and Sunshine Residential Homes. The House advisory team announced last year it would coordinate with Mitchell and Perry on their investigation.
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