It’s official: Arizona Democratic Gov. Katie Hobbs is under investigation. The state attorney general announced that its criminal division will look into whether the governor’s office, Arizona’s Department of Child Safety, and a group home service were involved in a pay-to-play operation. Some of the contributions from the group home company, Sunshine Residential Homes, have raised the eyebrows of authorities and Arizona Republicans in the legislature (via Axios):
AZ Governor Katie Hobbs accused in alleged 'pay-for-play' scheme involving group home operator https://t.co/l7yLEywWDr
— FOX 10 Phoenix (@FOX10Phoenix) June 8, 2024
The Arizona Attorney General's Office will investigate what a state senator described as a "pay-to-play scheme" involving Gov. Katie Hobbs, the Department of Child Safety and a group home company that received a substantial rate increase.
The big picture: The Arizona Republic reported Wednesday that Sunshine Residential Homes received a large rate hike from DCS after making six-figure contributions to Hobbs' inauguration fund and the Arizona Democratic Party.
Sunshine applied for a rate hike in December 2022 that DCS denied in February 2023. It again applied for a rate increase in May 2023 that was approved.
Meanwhile, the company gave $100,000 to Hobbs' inaugural fund in December 2022, though the inaugural fund's records dated the contribution in February 2023. Sunshine also gave $200,000 to the Arizona Democratic Party shortly before the 2022 election.
Sunshine CEO Simon Kottoor was on Hobbs' inaugural committee and contributed to her campaign, and his company gave her an award about a month before her election.
… Democratic Attorney General Kris Mayes' office said in a letter to state Sen. T.J. Shope (R-Coolidge) Thursday afternoon that its criminal division will open an investigation.
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Axios added that Arizona Republican State Sen. T.J. Shope, chair of the legislature’s Health and Human Services Committee, said that hearings on this matter could be held. Sen. Shope has contacted Maricopa County Attorney Rachel Mitchell to determine whether civil or criminal offenses have been allegedly committed. Mitchell told Shope she would be planning meetings with Arizona’s auditor general. The attorney general’s office also voiced their opinion, asking Mitchell to stand down since two competing investigations wouldn’t be in the state’s interest.
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