After criticism on inauguration funds, Arizona Gov. Katie Hobbs OKs limits on future governors

After widespread criticism over an initial lack of transparency around who paid for her inauguration, Arizona Gov. Katie Hobbs has signed a bill that will shed more light on future festivities and cap the amount future governors can raise.

Hobbs signed Senate Bill 1299, which was introduced by Republican lawmakers in protest over the governor's inauguration but won almost unanimous support among GOP and Democratic lawmakers. Only one Republican voted against the bill as it moved through the legislative process.

With Hobbs' signature on the bill Tuesday, future donations to inauguration events are capped at $25,000 each per business or individual, and governors who raise the money must put it into a state fund. Requiring the use of a state bank account makes records available to the public and limits how a governor can spend leftover money. That's because of an existing state law that says such funds are "for the purpose of promoting the interests of the state or to promote and encourage citizen public service to the state."

Hobbs raised an unprecedented amount of funding — more than $1.5 million — for her inauguration through a dark money group, which does not require disclosure of donors. She also raised at least $270,000 in other campaign funds that are publicly reported but cumbersome to track.

The Governor only identified the groups paying for her inauguration after facing public pressure and concern about special interests trying to curry favor with the new governor.

The top inauguration donor was Arizona's largest power company, Arizona Public Service, which chipped in $250,000. That support came after the utility and its parent company Pinnacle West spent over $750,000 in 2022 to support Hobbs' opponent, Republican gubernatorial candidate Kari Lake.

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The sheer amount of the money left over — the inauguration itself cost about $200,000 — prompted fears among Republicans that Hobbs would use the excess for her stated effort to help elect Democrats into the majority at the Legislature next year.

It's not uncommon for Arizona governors to take money from private interests to fund their inauguration parties, but Hobbs trounced her predecessors in the amount of money she was able to bring in. Former Republican governors Doug Ducey and Jan Brewer each revealed who was funding their events, and put the excess money into state accounts.

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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 Arizona Republic.

Sen. Jake Hoffman, R-Queen Creek, was the only lawmaker to vote against the bill, in part because he said it should apply to Hobbs, not only future governors.

The bill was sponsored by Sen. Wendy Rogers, R-Flagstaff, who said in a statement Tuesday that it safeguards against donors seeking to buy favors and using state resources to influence elections.

"I would like to thank Gov. Hobbs for being the inspiration behind this new law," Rogers said in the statement.

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 Gov. Katie Hobbs signs bill capping inauguration fundraising