by AZ Free Enterprise Club | May 14, 2025 | Opinion
By the Arizona Free Enterprise Club |
Since becoming Governor of Arizona in 2023, Katie Hobbs’ name has been synonymous with corruption. Now, one of her latest vetoes shows the lengths she is willing to go to protect her own schemes.
Buried on the afternoon of Friday, May 2, Hobbs vetoed SB 1612, along with 21 other bills. Sponsored by Arizona State Senator TJ Shope, SB 1612 would have required anyone applying for grants to various state agencies to disclose gifts, donations, or other support provided to the sitting governor. That sort of transparency should be something that every Arizonan can get behind—Republicans, Democrats, Independents, you name it—unless, of course, your agenda doesn’t involve the best interests of Arizona citizens, right Katie Hobbs?
This whole story starts at the very beginning of Hobbs’ tenure as governor. If you’ll recall, at the time, Hobbs set up a shady slush fund to provide donors with a conduit to buy political favor from her administration. While setting up and managing the fund, Hobbs illegally used public resources—like the state’s website—to solicit money for her inauguration. And she also tried to stop the disclosure of the names of those who donated to her inaugural fund.
But after immense political pressure and public records requests filed by groups like the Arizona Freedom Foundation (who operates AZ Free News), Hobbs finally released the names of the donors. One of the names of the groups on the list was Sunshine Residential Homes Inc., a for-profit company that contracts with the State of Arizona to provide some child welfare services. At the time, Sunshine Residential Homes made a donation of $100,000. But in June 2024, an eye-opening report revealed a deeper level of corruption—an alleged pay-to-play scheme between Hobbs and the group home…
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by Matthew Holloway | May 14, 2025 | News
By Matthew Holloway |
While states like Florida and Louisiana have forged ahead with crypto currency legislation, Governor Katie Hobbs, who has vetoed a total of 304 bills since taking office in 2023, vetoed three cryptocurrency bills in a matter of days.
Hobbs did sign HB2387, creating stricter regulations on Bitcoin ATMs. And she also signed HB2749 into law, allowing the state to hold cryptocurrency as unclaimed property. Hobbs vetoed SB1025 on May 3rd and then followed with vetoes against SB1024 and SB1373 on Monday.
The three bills would have respectively, allowed “the State Treasurer, the Arizona State Retirement System and the Public Safety Personnel Retirement System (public funds) to invest up to 10 percent of the public monies under its control in virtual currency holdings,” “authorize(d) a state agency to enter into an agreement with a cryptocurrency service provider to accept cryptocurrency as a payment method,” and “Establishe(d) the Digital Assets Strategic Reserve Fund (Fund), administered by the State Treasurer…consisting of monies appropriated by the Legislature and digital assets seized by the state.”
In the Governor’s letters to Senate President Warren Petersen explaining her vetoes, Hobbs repeatedly phrased the cryptocurrency-related laws as “risk(s),” “untested,” and suggested that her previous actions on cryptocurrency were “responsible.”
Senate Bill 1373: “Today, I vetoed Senate Bill 1373. Current volatility in cryptocurrency markets does not make a prudent fit for general fund dollars. I have already signed legislation this session which allows the state to utilize cryptocurrency without placing general fund dollars at risk, which is the responsible path to take.”
Senate Bill 1025: “Today, I vetoed Senate Bill 1025. The Arizona State Retirement System is one of the strongest in the nation because it makes sound and informed investments. Arizonans’ retirement funds are not the place for the state to try untested investments like virtual currency.”
Senate Bill 1024- “Today, I vetoed Senate Bill 1024. While this bill would allow State agencies to enter into agreements to protect the State from risks associated with cryptocurrency, legislators on both sides of the aisle acknowledged it still leaves the door open for too much risk.”
As previously reported by AZ Free News, HB2387, introduced by Rep. David Marshall (R-LD7), is designed to crack down on Crypto ATM fraud by imposing a $2,000 daily transaction limit on the devices, increased to $10,500 for return customers after ten days, requiring state operator licensing, and requiring refund policy options as well.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Jonathan Eberle | May 12, 2025 | News
By Jonathan Eberle |
Despite escalating tensions between the executive and legislative branches in Arizona, the Senate Committee on Director Nominations advanced the confirmation of Robyn Sahid as Commissioner of the State Land Department during a hearing held last week.
The confirmation process continued as scheduled, even as Republican members of the committee criticized Democratic Governor Katie Hobbs over remarks she made last week. GOP lawmakers described Hobbs’ comments as an “explosive temper tantrum” and a threat to bypass the Senate’s confirmation process—a move they characterized as unlawful.
“Senate Republicans will continue to be the adults in the room and serve as the critical check and balance on the executive, as the citizens of Arizona expect of us,” said Committee Chair Sen. Jake Hoffman, referring to Hobbs’ remarks during a press gaggle. Hoffman said the governor’s comments lacked legal grounding and had no impact on the committee’s work.
Senator John Kavanagh echoed that sentiment, calling Hobbs’ statements a “meltdown,” while commending the committee’s decision to confirm Sahid. “We confirmed a competent, non-partisan, qualified individual to serve as commissioner for the State Land Department,” he said.
Sahid, who has served in multiple public sector roles, received praise from lawmakers for her qualifications and demeanor. President Pro Tempore T.J. Shope emphasized that the committee remains open to nominees who demonstrate professionalism and nonpartisanship. “Robyn Sahid fit the bill today, and she should serve as an example to Governor Hobbs of the type of individuals we are looking to advance,” Shope said.
This latest episode is part of an ongoing power struggle between Governor Hobbs and the Republican-controlled Arizona Senate over executive appointments. Since taking office in 2023, Hobbs has clashed with lawmakers over the confirmation process, at one point even withdrawing several nominees in protest of what she described as a partisan and obstructive approach by the Senate.
Arizona law requires that many agency heads appointed by the governor must be confirmed by the state Senate. Tensions have mounted as Republicans have used their majority to exert a more thorough vetting process over appointments.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by Jonathan Eberle | May 11, 2025 | News
By Jonathan Eberle |
Arizona Senate President Warren Petersen on Thursday defended the work of the Senate Committee on Director Nominations (DINO), highlighting the committee’s progress and reaffirming its role in ensuring transparency and competence in executive branch appointments.
In a statement issued from the Arizona State Capitol, Petersen said the committee — established in February 2023 and comprised of both Republican and Democratic lawmakers — is functioning as intended to uphold a constitutional check on the governor’s appointment powers.
“In an effort to establish a clear system of checks and balances over state agency directors, I created the bipartisan Senate Committee on Director Nominations (DINO),” Petersen said, noting the panel is currently led by Chairman Jake Hoffman (R) and includes Senators T.J. Shope (R), John Kavanagh (R), Flavio Bravo (D), and Analise Ortiz (D).
According to Petersen, the DINO Committee has reviewed 20 executive nominations since its creation. Of those, 14 nominees have been confirmed by the full Senate, two have been rejected, and three are pending final Senate votes. An additional seven nominations were withdrawn by the Governor’s office before hearings were held.
“The DINO Committee is working as I intended it to, and as a result, we are receiving better quality candidates from the Executive Branch to lead these state agencies,” Petersen said, adding that four nominees are currently awaiting hearings and that two new nominations are needed to replace recently withdrawn candidates.
Some Democrats and political observers have raised concerns that the panel is being used to block or delay nominees over ideological differences rather than qualifications. Petersen rejected that characterization, stating, “We are… weeding out unqualified, highly partisan, incompetent, or corrupt individuals who should not be holding any sort of leadership roles within the State of Arizona.”
In his remarks, Petersen also pushed back on public criticism of the Senate’s rejections, calling media attention to political tensions a distraction from the committee’s overall effectiveness. “The fact is we have confirmed the vast majority of the nominees,” he said. “The process is simple. If the Governor sends us qualified, non-partisan nominees, they will be confirmed.”
Governor Hobbs’ office has not yet publicly responded to Petersen’s latest remarks. Her administration has previously defended its nominees and criticized the Senate for what it describes as politicized obstruction.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
by Jonathan Eberle | May 9, 2025 | News
By Jonathan Eberle |
A bill aimed at increasing transparency and accountability in Arizona’s Medicaid contracting process has been vetoed by Governor Katie Hobbs, prompting strong criticism from Republican lawmakers who say the governor is shielding her administration from scrutiny.
The legislation, SB 1612, was sponsored by Senate President Pro Tempore T.J. Shope and would have implemented a series of oversight measures affecting how the Arizona Health Care Cost Containment System (AHCCCS) — the state’s Medicaid agency — awards contracts and handles procurement.
In a statement released late Friday, Hobbs vetoed the bill without an accompanying public explanation, though her office has generally opposed what it characterizes as politically motivated legislation. Shope, however, called the veto “an alarming example of the fox guarding the henhouse.”
“I drafted this legislation in response to potential wrongdoing revealed from a probe on how the Hobbs administration provided an unfair advantage when awarding $15 billion worth of state Medicaid contracts,” Shope said. “She appears to be providing favoritism to her friends, allies, and donors using taxpayer dollars.”
The legislation comes in the wake of a 2023 ruling by an administrative law judge that found AHCCCS had improperly awarded contracts related to the Arizona Long Term Care System (ALTCS), which provides care for roughly 26,000 elderly and disabled Arizonans. The judge cited violations of procurement statutes, flawed bid evaluations, and evidence that contract decisions were made based on the interests of the agency rather than the public. Compounding concerns, a June 2023 local media investigation revealed that Sunshine Residential Homes, a state-licensed group home with a record of deficiencies, received millions in contracts from the Arizona Department of Child Safety (DCS) after making campaign donations to Governor Hobbs and the Arizona Democratic Party.
SB 1612 would have removed a statutory exemption allowing AHCCCS to use its own procurement code, requiring adherence to statewide rules; prohibited destruction of internal documentation during request-for-proposal (RFP) evaluations; and required vendors responding to RFPs or applying for state-administered grants to disclose political donations made to the governor or associated campaign committees.
Critics of Hobbs say these measures were a direct response to growing concerns about transparency in her administration. “Had she signed this bill into law, she would have given the citizens of Arizona greater confidence in state government acting in their best interests — not the best interests of political campaign coffers,” Shope said.
Hobbs’ veto is one of more than 100 since taking office in 2023. With Republicans controlling both chambers of the Arizona Legislature and Democrats holding the governorship, partisan tensions over issues like procurement, immigration, and education have dominated the political landscape.
Supporters of SB 1612 say it was a common-sense effort to address documented problems in contract awards that affect the lives of thousands of vulnerable Arizonans. As scrutiny intensifies over both AHCCCS and DCS procurement decisions, it remains to be seen whether lawmakers will revisit the bill in another form or pursue an independent investigation into the allegations.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
