An excerpt of Dentons’ Political Law Playbook.
Arizona Governor Accused of Alleged “Pay-to-Play” Scheme – The Arizona Attorney General’s Office recently opened an investigative review of Governor Katie Hobbs in regard to an alleged “pay-to-play” scheme involving large corporate and personal donations to Hobbs’s inaugural committee, gubernatorial campaign, and the Arizona Democratic Party. The inquiry commenced following a report published by The Arizona Republic, which revealed that a corporate supporter of Hobbs, Sunshine Residential Homes Inc., received a nearly 60% rate increase in funding from the Arizona Department of Economic Security during the first year of the Hobbs Administration. The increase in state funding occurred in the wake of Sunshine Residential and individuals associated with the company making approximately $200,000 in donations to Hobbs’ inaugural committee, campaign, and other aligned political organizations following her election. These donations purportedly followed closely on the heels of an additional $200,000 in previously reported political contributions to the Arizona Democratic Party and Hobbs-aligned political organizations during the 2022 state gubernatorial race. In response to the newspaper’s reporting, Republican lawmakers sent a letter to the Attorney General requesting an investigation into the matter. The Attorney General’s office confirmed that it will begin an investigation into the alleged pay-to-play scheme.
About the Political Law Playbook
Dentons’ Political Law Playbook is a monthly update on the most important developments in the areas of political law, government ethics, campaign finance, lobbying and election law. Each edition of Political Law Playbook will cast a spotlight on the unique issues at the intersection of law, policy and politics and give you a window into how the Dentons Political Law, Ethics and Disclosure team can help you navigate the compliance challenges you face.
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