Arizona Senate Republicans have transferred an election-season investigation involving Gov. Katie Hobbs and a major foster-care contractor to a different committee and placed a former state Supreme Court justice in charge as special counsel.
The inquiry is moving from the Government Committee, chaired by Sen. Jake Hoffman of Queen Creek, to the Appropriations Committee, chaired by Sen. David Farnsworth of Mesa. Former Justice Andrew Gould will lead the work as outside counsel, Axios reported Monday. The change means subpoenas issued under the earlier committee must be reissued and a Sept. 29 hearing must be rescheduled.
The procedural reset follows questions about Hoffman’s role. Axios reported that companies connected to him received about $1.5 million from Turning Point PAC for work aimed at defeating Hobbs and supporting Republican gubernatorial nominee Andy Biggs. Hoffman said transferring the matter would remove objections to cooperation and keep the focus on evidence. Hobbs’ campaign called the inquiry partisan and pointed to a completed criminal investigation that did not charge the governor.
The Senate probe centers on rate increases approved by the Arizona Department of Child Safety for Sunshine Residential Homes, a large provider of group-home beds for foster children, after political donations associated with the company. In an earlier account of the subpoenas, Axios reported that Hobbs, Attorney General Kris Mayes and others had been called to testify before the committee. Those demands now have to be renewed under Farnsworth’s panel.
The underlying allegations have already received a two-year review by the Attorney General’s Office. In its Aug. 21 findings, the office said investigators reviewed more than 100,000 documents, campaign-finance and procurement records, bank material and state communications. Attorney General Kris Mayes said the investigation found no evidence of the quid pro quo required to support a bribery charge, while also urging lawmakers and the governor to strengthen transparency rules for political donations by state contractors.
Associated Press reporting on the findings said Sunshine’s rate rose from $149 to $195 per bed in 2023 after an earlier request was denied. The company had warned that without an increase it could shift beds to a better-paying federal program for unaccompanied immigrant children. State officials said losing Sunshine’s approximately 290 beds could have disrupted placements and separated siblings. Hobbs has denied involvement in the rate decision.
The attorney general’s decision did not close every review. AP reported that inquiries by the Maricopa County Attorney and state Auditor General were continuing. The Senate’s restructured proceeding is separate from those investigations and can examine policy or oversight questions even where prosecutors found insufficient evidence for criminal charges.
For Arizona residents, the immediate effect is a delay and a new chain of responsibility: Farnsworth must decide when to convene the Appropriations Committee, Gould must define the inquiry’s legal work, and any witnesses must receive new subpoenas. The transfer may reduce one conflict concern, but it does not resolve the central dispute over the rate decision or whether the Legislature should change contractor-donation disclosure rules.
