Senate Republicans Push Contracting Oversight Bill After Hobbs Administration Scandals
FOR IMMEDIATE RELEASE
Tuesday, February 17, 2026
PHOENIX, ARIZONA— In response to contracting scandals under Governor Katie Hobbs' administration, Senate Republicans are advancing legislation through committee this week aimed at increasing transparency and preventing political favoritism in how taxpayer-funded contracts are awarded.
SB 1186 requires companies seeking state contracts or certain state grants to disclose anything of value provided within the previous five years to the Governor, any campaign or inauguration-related entities, and outside organizations supporting or opposing the Governor politically. A forthcoming committee amendment will extend these disclosure requirements to companies with existing state contracts as well, ensuring transparency applies not only before contracts are awarded but throughout the life of taxpayer-funded agreements. The bill requires disclosures before contracts are awarded, preserves evaluation records created during the Request for Proposals (RFP) process, and allows contracts tied to destroyed records to be re-solicited. The reforms close transparency gaps exposed by recent contracting disputes and help ensure taxpayer dollars are awarded through a fair and accountable process.
The legislation follows ongoing concerns surrounding the Governor's Office, including the widely reported Sunshine Residential Homes controversy, where a state vendor received a substantial rate increase after individuals connected to the company made hundreds of thousands of dollars in political donations benefiting entities tied to the Governor, prompting investigations into potential pay-to-play practices. The proposal also follows contracting failures tied to the Arizona Health Care Cost Containment System (AHCCCS), where a multibillion-dollar Medicaid contract award faced legal challenges after an administrative law judge identified serious flaws in how proposals were evaluated and scored, raising concerns about transparency and fairness in the state's contracting process.
"State government has a responsibility to ensure taxpayer dollars are awarded through a fair and competitive process people can trust," said Senate President Warren 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 President Pro Tempore T.J. 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 Majority Whip Frank 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 Senate Majority Leader John Kavanagh. "SB 1186 modernizes the rules by setting clear disclosure standards and establishing enforceable safeguards that strengthen the contracting process itself."
"Political influence rarely shows up as a direct campaign check," said Senator David Farnsworth. "It often moves through affiliated committees and outside organizations. This bill ensures those connections are disclosed so the public understands the full context surrounding major contract decisions."
SB 1186 is scheduled to be heard in the Senate Regulatory Affairs & Government Efficiency Committee Wednesday.
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For more information, contact:
Kim Quintero
Director of Communications | Arizona State Senate Republican Caucus