Speaker Ben Toma has established a House advisory team to investigate allegations that Governor Katie Hobbs’ administration gave preferential treatment to Sunshine Residential Homes after the company donated over $400,000 to Hobbs and the state Democratic Party. Documents cited by The Arizona Republic indicate that Sunshine Residential Homes received a 30-percent rate increase valued at millions of dollars, while similar requests from other providers were denied. Internal staff communications reportedly discussed keeping the rate increase confidential from competitors and referenced the company’s political connections to Governor Hobbs. This occurred during a period when the governor’s agency was experiencing a budget shortfall and had been directed to reduce its use of group homes.
The newly formed advisory team will conduct a legislative investigation aimed at collecting facts, working with ongoing law enforcement investigations, and making recommendations for House action to address political favoritism in state contracting.
This development follows previous actions by House leaders regarding alleged misconduct related to Sunshine Residential Homes and the Hobbs administration. In June 2024, Representative Matt Gress, who chairs the Joint Legislative Audit Committee, called on both the Maricopa County Attorney and Auditor General to investigate potential illegal activity after The Arizona Republic first reported on financial and political ties between Sunshine Residential Homes and the governor’s office.
Additionally, Representative David Livingston, Chair of the House Appropriations Committee, requested that Attorney General Kris Mayes recuse herself due to what he described as her conflict of interest and history of protecting Governor Hobbs and members of her party.
Members appointed to the advisory team include Rep. Selina Bliss (Chair of the House Health and Human Services Committee), Rep. David Livingston, Rep. Matt Gress, Rep. Quang Nguyen (Chair of the House Judiciary Committee), and Speaker Pro Tempore Neal Carter.
Carbone was elected as a Republican representative for Arizona’s 25th House District in 2023, succeeding Michelle Udall.
