Arizona AG declines to charge Gov. Katie Hobbs over pay-to-play allegations

Arizona Attorney General Kris Mayes has declined to file criminal charges against Governor Katie Hobbs concerning allegations of a pay-to-play scheme. The accusations centered on a group home company, Sunshine Residential Homes, which allegedly received a rate increase from the state after contributing $100,000 to Hobbs' inaugural celebration.

The investigation, initiated after a report revealed the company's contribution and subsequent payment increase, became a political challenge for Hobbs as she seeks a second term. Her Republican opponent has highlighted the probe in campaign ads. Hobbs has consistently denied any wrongdoing, stating she was not involved in the decision-making process for the rate increase.

Mayes stated that the investigation did not uncover sufficient evidence to support a bribery charge. However, she emphasized the need for legislative reform to enhance transparency regarding political donations made by state contractors. Mayes urged Governor Hobbs and the Republican-controlled Legislature to implement such improvements.

Separately, a probe by Republican Maricopa County Attorney Rachel Mitchell and the state auditor general is ongoing, though its scope and timeline remain unclear. The group home company had reportedly threatened to reduce its bed capacity if a rate increase was not granted, suggesting it would instead house unaccompanied immigrant children for the federal government, which offered higher reimbursement rates.

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The investigation has not uncovered any evidence of the necessary quid pro quo to support a bribery charge.