Arizona Republicans Send Transparency Bill to Governor's Desk Following Contracting Scandals

FOR IMMEDIATE RELEASE
Thursday, June 11, 2026

PHOENIX, ARIZONA—Governor Katie Hobbs now has an opportunity to increase transparency in state government by signing legislation sponsored by President Pro Tempore T.J. Shope requiring companies seeking taxpayer-funded contracts and grants to disclose political donations, gifts, and other items of value connected to the Governor and affiliated political organizations.

SB 1186 responds to widely reported concerns involving the Sunshine Residential Homes rate increase controversy and legal challenges surrounding a multibillion-dollar AHCCCS contract award. In that case, an administrative law judge identified significant flaws in how proposals were evaluated and scored, raising serious questions about fairness, record retention, and oversight in Arizona's procurement process.

Under the legislation, companies that currently hold state contracts or seek future state contracts must disclose anything of value provided during the previous five years to the Governor, campaign-related entities, inaugural funds, and organizations making independent expenditures supporting the Governor or opposing the Governor's political opponents. The same disclosure requirements apply to companies seeking certain state grants.

SB 1186 also strengthens accountability within the procurement process by prohibiting state agencies and employees from destroying notes created during the evaluation of proposals submitted through a Request for Proposals process. If those records are improperly destroyed, contracts connected to the missing records may be re-solicited to help protect the integrity of the procurement system.

"Arizonans have watched one contracting controversy after another and are rightly asking whether political connections are influencing decisions involving billions of taxpayer dollars," said Senator Shope. "This bill requires disclosure before contracts and grants are awarded, not after questions arise. It preserves the records needed to verify decisions, strengthens accountability, and gives taxpayers greater confidence that public dollars are being awarded fairly. Governor Hobbs now has an opportunity to show Arizonans she supports transparency in government by signing this legislation."

The legislation follows years of public concern over the state's contracting process and establishes new safeguards to help ensure taxpayer-funded contracts and grants are awarded through a fair, transparent, and accountable process. SB 1186 passed both chambers of the Arizona Legislature and now awaits the Governor's consideration.

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For more information, contact:

Kim Quintero

Director of Communications | Arizona State Senate Republican Caucus

kquintero@azleg.gov

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