Senate GOP Taps Former Justice Gould, Shifts Hobbs Pay-to-Play Probe After Hoffman Scrutiny

Arizona Senate Republicans have appointed former Arizona Supreme Court Justice Andrew Gould as special counsel in their investigation of alleged “pay-to-play” dealings involving Gov. Katie Hobbs and Sunshine Residential Homes, transferring the inquiry from the Government Committee to the Appropriations Committee.

The September 21 changes include cancellation of the Government Committee’s scheduled September 29 hearing and the existing subpoenas directed at Hobbs and other witnesses. No replacement hearing date has been announced, according to Capitol Media Services reporting published by the Arizona Daily Star.

🚨FOR IMMEDIATE RELEASE: Former Arizona Supreme Court Justice Andrew Gould Appointed to Lead Senate Investigation into Hobbs Pay-to-Play Scandal

Full press release: https://t.co/BJbf1zBEaj@JakeHoffmanAZ @DaveFarnsworth_ pic.twitter.com/iaMWdVn7FI

— AZSenateRepublicans (@AZSenateGOP) September 21, 2026

The legislative inquiry follows Attorney General Kris Mayes’s August 21 decision to decline prosecution after a two-year investigation. Her office reported that investigators found no evidence of the quid pro quo necessary to support a bribery charge after reviewing more than 100,000 documents and over one terabyte of data. Mayes also called for legislation requiring greater transparency concerning political donations from state contractors. 

State Sen. David Farnsworth (R-Mesa), chair of the Appropriations Committee, will oversee the investigation. Senate Republicans said the transfer places the matter before the panel responsible for reviewing state spending, while Gould will assist with examining evidence and potential legislative reforms, according to Arizona’s Family.

As the California Globe previously reported, Government Committee Chairman Jake Hoffman (R-Queen Creek) announced the inquiry September 16, seeking records and testimony from Hobbs, Mayes, members of their staffs, Sunshine representatives, and former Department of Child Safety officials.

The transfer follows scrutiny of Hoffman’s consulting business and its work supporting Hobbs’s Republican challenger, U.S. Rep. Andy Biggs (R-AZ-05). Capitol Media Services reported that Hoffman’s firm, 1Ten LLC, handled approximately $1.2 million in advertising placed by others to defeat Hobbs and elect Biggs, retaining a share of those media buys. 

Hoffman attributed his decision to step away from leading the inquiry to coverage of those financial ties. Senate Republican spokesperson Kim Quintero told Capitol Media Services that the committee transfer was Hoffman’s decision and that Hoffman and Farnsworth selected Gould.

“The crooked political media decided what this investigation was before it even began, because running cover for Katie Hobbs and Kris Mayes is more important to them than exposing potential corruption,” Hoffman said in a Senate press release. “They are more interested in attacking the investigator than investigating the scandal and the necessary policy changes. Transferring the proceedings and placing former Justice Andrew Gould at the center takes away their excuses for non-cooperation, strengthens the investigation, and ensures the evidence, not their predetermined political narrative, drives any resulting legislative reforms.”

Hobbs campaign spokesperson Michael Beyer criticized the revised inquiry, saying, “After political consultant Jake Hoffman was exposed for profiting from these shameless attacks on behalf of the Biggs campaign, partisan extremists are now scrambling to keep this taxpayer-funded sham alive.” Beyer characterized the investigation as an effort to assist Biggs’s campaign.

Senate Minority Leader Priya Sundareshan (D-Tucson) separately challenged the characterization of Gould as independent, citing his Republican candidacy for attorney general in 2022 and his legal work for conservative organizations. Gould left the Arizona Supreme Court in 2021 and subsequently lost the Republican attorney general primary. 

The underlying dispute concerns DCS payment increases for Sunshine Residential Homes and political contributions associated with the provider. Sunshine contributed $100,000 to Hobbs’s inaugural fund and $300,000 to the Arizona Democratic Party. The company also made $150,000 in contributions to Hobbs’s campaign-affiliated legal-defense fund, bringing those company contributions to $550,000, according to Capitol Media Services.

The legal-defense contributions consisted of three $50,000 payments between November 2023 and May 2024, as the California Globe previously reported.

Hobbs has denied involvement in the rate decisions. Statements submitted through her attorneys said she did not discuss contract rates with Sunshine, direct others to do so, or know about the negotiations before the increase was approved, according to the Associated Press’s account of the attorney general’s findings.

“This investigation will be conducted dispassionately and according to the law, with respect for individual rights, due process, and a disciplined review of the evidence,” Special Counsel Gould said in a statement. “My responsibility will be to help the committee establish a complete factual record, evaluate testimony and documents objectively, and ensure its work is thorough, fair, and legally sound. No factual or policy conclusion should be predetermined. The evidence will determine where this investigation leads, and which reforms if any are ultimately recommended to the Committee.”

Quintero said Gould will work with Farnsworth to review the available information and determine the next steps, which could include reviewing records and speaking with relevant individuals, according to Capitol Media Services. The revised inquiry will also examine Mayes’s handling of the earlier investigation.