Arizona Senate Republicans have subpoenaed Democratic Gov. Katie Hobbs, Attorney General Kris Mayes and other officials for testimony and records in a new legislative inquiry into state payments to Sunshine Residential Homes.
Senate Government Committee Chair Jake Hoffman said the panel will hold a Sept. 29 hearing and has summoned members of Hobbs’ and Mayes’ staffs, current and former Department of Child Safety employees, Sunshine founder Simon Kottoor and others. The subpoenas seek testimony, phone records and the unreleased files from Mayes’ two-year investigation.
The controversy centers on a May 2023 decision raising Sunshine’s per-child rate from $149.99 to $195, a 30% midcontract increase. The rate later reached $234 when the contract was renewed in 2024. Sunshine and people connected to it had provided $400,000 to Hobbs’ inaugural fund and the Arizona Democratic Party, then another $150,000 to Hobbs’ legal defense fund.
Mayes declined to prosecute in August, saying review of more than 100,000 documents and one terabyte of data found no evidence of the quid pro quo needed for a bribery charge. Hobbs has denied directing or knowing about the rate decision.
Hoffman said the committee wants a public accounting and possible legislative reforms. Hobbs’ campaign and Mayes’ office call the probe election-season political theater, noting Hoffman has endorsed Republican gubernatorial nominee Andy Biggs and that a company he owns has been paid nearly $1.2 million to assist Biggs’ campaign.
Arizona law authorizes committee chairs to issue legislative subpoenas; knowingly refusing without lawful excuse can be a Class 2 misdemeanor. Neither office had said whether the officials would appear.
Separate reviews by the Arizona Auditor General, Maricopa County Attorney’s Office and outside counsel retained by House Republicans remain underway. No criminal charges have resulted from the allegations.
