A state senator whose advertising company has been paid more than $1 million to defeat Arizona Gov. Katie Hobbs this November has launched a new investigation of Hobbs and subpoenaed the sitting governor.
Sen. Jake Hoffman, a Queen Creek Republican, announced Sept. 16 that the Senate Government Committee would conduct an investigation of Hobbs' ties to a state contractor that received a major rate increase after donating to Hobbs' political operation. The legislative probe will also examine a recently concluded investigation by Democratic Attorney General Kris Mayes and any possible changes to state law that are necessary, Hoffman said.
At least 15 people and organizations, including Hobbs, Mayes and their top campaign and government advisers,
will be subpoenaed to provide documents or testimony at a Senate Government Committee hearing set for Sept. 29, Hoffman said.
"The known facts, the unanswered questions and continuous secrecy require an independent public examination of whether Arizona's anti-corruption laws are effectively preventing the misuse of political power and government resources," Hoffman said during a news conference at the Capitol. He was joined by GOP Sens. Wendy Rogers, David Farnsworth and Mark Finchem.
The announcement came just 48 days before the November election, when both Hobbs and Mayes are on the ballot. The Senate Government Committee hearing will be just three weeks before Election Day.
Hobbs' campaign quickly dismissed the new investigation as politically motivated.
“With just 21 days until voting starts and Andy Biggs’ cronies realizing they are running out of time to change the trajectory of his floundering campaign, it’s no surprise a political consultant profiting from Biggs’ campaign is resorting to desperate political stunts to rescue him,” campaign spokesperson Michael Beyer said.
The allegations against Hobbs were first reported by The Arizona Republic over two years ago, and have prompted several investigations. Mayes' investigation ended in August and found no evidence Hobbs committed bribery or was involved in the rate increase. Hobbs has maintained she did nothing wrong, and a former child welfare director affirmed she was not involved in the payment decision.
Republicans in the Arizona House of Representatives launched their own investigation earlier this year, which Senate Republicans sat out at the time. The Maricopa County attorney and Arizona Auditor General are also investigating and have been since 2024.
Asked about putting more public resources toward a fourth investigation of the situation, Hoffman said the commitment of the Senate would be small and amount to staff time. He said it was necessary to seek answers, and even if no crime occurred it was worth probing because "when there's smoke there's often fire."
Hoffman blamed the timing of the Senate's upcoming hearing on Mayes.
"If Mayes had released the Hobbs files when she concluded that there was nothing to see, we likely wouldn't be in this situation," Hoffman said.
Mayes' office has said it would release the files compiled during her investigation following a legal review. The records total more than 100,000 pages. Richie Taylor, a spokesperson for Mayes' office, said the attorney general stands by the investigation that took over two years and found no evidence to support a bribery charge.
"This is nothing more than performative political nonsense at the taxpayers' expense just weeks before the election," Taylor said of the Senate Government Committee's probe. "Sen. Hoffman should explain why he is using tax dollars on a political grudge match three weeks before ballots are mailed."
The investigations stem from a former Department of Child Safety director hired by Hobbs' administration who approved a special rate increase for Sunshine Residential Homes in May 2023. The company had repeatedly asked for a rate hike but was denied previously. In 2022, Sunshine Residential began a political spending campaign that benefited Hobbs' political groups and allies and ultimately added up to over $550,000 in financial support. DCS staff discussed Sunshine Residential leadership's donations to Hobbs as they decided whether to recommend the special rate increase three years ago.
The situation has been a drag on Hobbs, who conceded transparency reforms were needed, and has been used by Republican lawmakers as a political cudgel. While Mayes found insufficient evidence to support a bribery charge, she acknowledged the appearance that a contractor seeking to influence the administration warranted policy changes to bring greater transparency.
Hobbs leads Rep. Andy Biggs, a Gilbert congressman and former state lawmaker, by a decisive margin in recent public polling. Biggs' latest television advertisement attacks Hobbs for "corruption" related to the contractor.
Turning Point PAC, the political advocacy group affiliated with conservative group Turning Point USA, had paid Hoffman's company, 1Ten LLC, $560,000 through the end of July to help get Biggs elected, according to campaign finance and "dark money" disclosures required under Arizona Voters Right to Know Act.
Another almost $550,000 was paid to his companies on Sept. 10, 11 and 12 — just four days before Hoffman announced the subpoenas — to help Biggs.
But Hoffman said his work for Turning Point PAC had no influence on his decision to issue the subpoenas, adding he can "walk and chew gum at the same time." Asked about his political work by The Republic, Hoffman said the question was "absolutely inappropriate" and it was "the media trying to spin narratives that don't exist."
He noted times he's split from his own party as evidence of his commitment to good government and objectivity. Hoffman has split from the GOP on budget votes and been critical of his party's handling of issues like the education funding measure Proposition 123, among other things. He said he has remained consistent for four years in pursuing oversight and accountability of Hobbs' administration.
"We are not on a witch hunt here," Hoffman said. "We are in pursuit of the truth. We are in pursuit of the objective reality as to whether taxpayer dollars have been exploited to benefit a political ally.
This is a developing story. Return to azcentral.com for updates.
Reach reporter Stacey Barchenger at stacey.barchenger@arizonarepublic.com or 480-416-5669.
This article originally appeared on Arizona Republic: AZ Senate GOP subpoenas Katie Hobbs in new Sunshine Residential probe
