On Monday, outside counsel has been engaged by the House advisory team investigating Governor Katie Hobbs’ Department of Child Safety to conduct an independent investigation into the pay-to-play scandal involving Sunshine Residential Homes.
At the recommendation of the advisory team, the House has retained Justin Smith of the James Otis Law Group in Missouri to serve as independent counsel. Smith will review records, conduct interviews, and report findings directly to the advisory team and House leadership.
The investigation follows extensive reporting by The Arizona Republic documenting that Sunshine Residential Homes received a special 30-percent rate increase worth millions after donating more than $400,000 to benefit Governor Hobbs and the Arizona Democratic Party, while other providers were denied increases. Internal agency messages cited in the reporting acknowledged Sunshine’s political ties, discussed keeping the rate increase quiet from competitors, and raised concerns even as the agency faced budget shortfalls and a statutory directive to reduce reliance on group homes.
The advisory team determined that engaging an out-of-state attorney was essential to conduct a thorough and impartial investigation. Speaker Montenegro accepted the recommendation.
“The Arizona Republic’s reporting describes political donations followed by special treatment inside Governor Hobbs’ administration,” Speaker of the House Steve Montenegro said. “The advisory team has done serious, disciplined work, and their recommendation to bring in independent counsel is the right next step.”
This investigation builds on prior House actions taken in 2024, including formal referrals by Representative Matt Gress, Chairman of the Joint Legislative Audit Committee, to the Auditor General and Maricopa County Attorney, and calls by Representative David Livingston for Attorney General Kris Mayes to recuse herself due to conflicts of interest. Speaker Montenegro formed the advisory team in 2025 to consolidate those efforts and advance legislative oversight.
“Justin Smith has the experience and integrity this investigation demands. He has no interest other than uncovering the truth,” Montenegro added. “The House will not look the other way when taxpayer dollars and vulnerable children may have been used as leverage in a political scheme. We will follow the facts, consider the findings, and ensure transparency and accountability in state government. Arizonans deserve nothing less.”
The advisory team will continue its work alongside independent counsel and will review findings and recommendations as the investigation proceeds.
you mean democrats are corrupt? no way!
Hibbs has no moral compass, her compass only points to power and control. Cheats in elections, cheats in fundraising, cheats with our tax dollars, and there’s more.