Arizona GOP presses AG Mayes over decision not to charge Gov. Hobbs in Sunshine rate-increase probe

In August, Attorney General Kris Mayes concluded that Governor Katie Hobbs would not be criminally charged after examining whether donations from Sunshine Residential Homes to the Arizona Democratic Party and Hobbs’ inauguration fund influenced the state’s approval of the company’s rate increases. Sunshine gave $200,000 to the party and $100,000 to Hobbs in 2022, followed by another $100,000 to the party in 2024, after which its bed-per-day rate rose from $149.99 to $234.

Republicans contend the probe failed to address alleged testimony that CEO Simon Kottoor promised to recommend retaining Child Safety director Mike Faust if a higher rate was approved. Former Deputy Director Shalom Jacobs supported Faust’s account, but Mayes’ office dismissed the claim as inadmissible hearsay. GOP leaders such as Senate President Warren Petersen’s campaign director Chad LeBeau and Rep. Andy Biggs have accused Mayes of protecting her party, while the AG’s communications director Richie Taylor defended the decision, citing lack of evidence meeting Arizona’s evidentiary standards.