Sunshine Residential Homes, a group home that donated $400,000 to Governor Katie Hobbs and other Democrats, is set to be investigated by the Arizona Attorney General's Office for a suspected “pay-to-play” scheme.
An Arizona Republic report indicated that Sunshine Residential Homes appeared to receive favorable treatment from the Department of Child Services following their donations. The report noted that Sunshine operates approximately 30 group homes for children in state custody and was the only provider to receive a special rate increase under Hobbs' administration. By May 2023, the daily rate paid to Sunshine increased from $149 to $195 per child, while similar rate increase requests from other providers were largely denied by DCS, with only two exceptions.
Republican Senator T.J. Shope of Coolidge requested that Attorney General Kris Mayes' office investigate the potential scheme, citing possible crimes such as bribery, fraud, and contract law violations. Shope also requested an investigation by the Maricopa County Attorney's Office.
Arizona Attorney General Kris Mayes' office responded, stating that a criminal investigation will be initiated following the Arizona Republic report on political donations from a state contractor linked to Governor Katie Hobbs.
A letter from Mayes' criminal division chief, Nick Klingerman, thanked Shope for his referral concerning “Sunshine Residential Homes,” but did not mention Hobbs or the Department of Child Safety.
Additionally, Shope requested that Maricopa County Attorney Rachel Mitchell, a Republican, investigate the matter. On Thursday, Representative Matt Gress, R-Phoenix, informed Mitchell's office that the nonpartisan Arizona Auditor General's Office would be available to assist with the investigation. Gress chairs the Joint Legislative Audit Committee, which can direct the auditor general's activities.
A spokesperson for Governor Hobbs has declined to comment on the investigation.
