After controversy with Gov. Hobbs' inauguration fund, will she now decide to impose limits?

Arizona lawmakers have voted overwhelmingly to send Gov. Katie Hobbs a bill that limits how future governors raise money for their inauguration, a measure that serves at least partially as a rebuke to how the Democratic governor funded her festivities earlier this year.

The bill, Senate Bill 1299, requires governors to use a state promotional fund for inauguration fundraising, which limits how any excess can be spent and caps donations at $25,000 per person or business. The bill received its final vote in the Senate on Wednesday, passing 28-1, and now heads to Hobbs' desk.

"When you campaign on being the most transparent governor in history, you probably ought to follow that," Sen. T.J. Shope, R-Coolidge, an outspoken supporter of the bill, said, referencing Hobbs' pledges as a candidate. "And I think the vote count today showed that."

Hobbs raised an unprecedented over $1.5 million for her inauguration through a dark money group, which does not require disclosure of donors, as well as another at least $270,000 toward other campaign funds that are publicly reported but cumbersome to track. She initially declined to identify the special interests paying for the inauguration, but later did so after facing public pressure and concern about special interests trying to curry favor with the new governor.

"I think, frankly, some folks were a little alarmed thanks to your guys' reporting, and others, on some of the massive dollar amounts that were spent on that event, and what does that purchase somebody?" Shope told The Arizona Republic and azcentral.com.

Capitol Media Services first reported on the dark money fund and Hobbs' refusal to reveal its donors. The unprecedented fundraising solicitations — for up to $250,000 — and Hobbs' total fundraising were first revealed by The Republic.

It didn't help soothe the early tensions of divided government that Hobbs shortly thereafter pledged $500,000 to flip the Legislature to Democratic control in 2024; a promise that irked Republican legislators. House Speaker Ben Toma, R-Glendale, and Senate President Warren Petersen, R-Gilbert, had already urged Hobbs to put the unspent inaugural money not toward politics but toward the public good.

If Hobbs signs the bill, future governors must do so, because money in state-managed promotional accounts has limited use and political influence isn't one of them.

State law says promotional accounts can get spent "for the purpose of promoting the interests of the state or to promote and encourage citizen public service to the state."

Previous Arizona governors disclosed inauguration donors

It’s not uncommon for governors to take private donations for public inauguration celebrations, and several in recent memory — including Republicans Doug Ducey and Jan Brewer — chose to disclose those donations and their expenses.

Ducey shifted money raised during his 2015 transition from a private fundraising group into the state-controlled fund, and Brewer used excess money to renovate the Governor's Office, including buying new carpet.

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The bill was introduced by Republican lawmakers who objected to Hobbs' secretive fundraising and underwent significant changes as it moved through the Legislature. The version first introduced by Sen. Wendy Rogers, R-Flagstaff, required governors to disclose their inauguration donors online within 15 days of the festivities.

Hobbs signaled she would support that version of the bill, but her office did not respond to a question about where she stands on the revised version. The bill passed with supermajority support sufficient to override a veto, should Hobbs kill it.

The Senate unanimously approved the bill in February, but then it was re-written in the House before it passed that chamber with a 58-0 vote last week.

One lawmaker says no, another doubts vote

Sen. Jake Hoffman, R-Queen Creek, was the lone member of the Legislature to vote against the bill, though he voted in favor of the previous version.

"The bill got watered down, and quite frankly the bill should be required to affect monies that are sitting in that account today, not just future governors," he said. He declined to explain what was watered down, saying he wouldn't get "into the logistics of it."

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Hoffman said he supported governors using donated money to fund inaugurations but objected to Hobbs' later threats to use the money to unseat Republican majorities.

Sen. Mitzi Epstein, D-Tempe, said she had to make a rush decision on the bill, voting in favor of sending it to Hobbs but lamenting there was no warning prior to Wednesday that the Senate would consider it. Democrats discussed the bill earlier in the day during their caucus meeting, which is a partisan gathering to talk about the merits of bills.

"I had to make that decision on, basically, the House members passed it unanimously, and I was assured that the underlying reporting requirement would be at least as good as the prior bill," she said.

"I don't feel real solid about my vote, to be honest with you."

Reach reporter Stacey Barchenger at stacey.barchenger@arizonarepublic.com or 480-416-5669. Follow her on Twitter @sbarchenger.

This article originally appeared on Arizona Republic: Arizona governor's inauguration fund bill awaiting Hobbs' signature