Former Arizona Supreme Court Justice Andrew Gould has been appointed special counsel to oversee the Arizona Senate Republicans’ investigation into allegations that Gov. Katie Hobbs benefited politically from a state contractor that later received substantial increases in payments from the state. Senate Republicans announced Monday that Gould’s appointment would provide the investigation with independent legal oversight.

The investigation centers on Sunshine Residential Homes, a group-home provider that received significant rate increases from the Department of Child Safety after making political contributions connected to Hobbs and the Arizona Democratic Party. The Arizona Republic first reported the circumstances surrounding the payments in 2024, prompting questions about whether political donations influenced state decisions involving the company.

The allegations have remained a political problem for Hobbs even though Mayes, a fellow Democrat, announced in August that her office would not prosecute the governor. After a two-year investigation that included more than 100,000 documents, campaign-finance records, procurement records, bank documents and state communications, Mayes said investigators found no evidence of the necessary quid pro quo to support a bribery charge.

Hobbs has denied wrongdoing and said she was not involved in the decision to increase Sunshine Residential Homes’ payments. Her office has also criticized the Senate investigation as a political effort against the governor as she seeks reelection.

The Senate investigation nevertheless continues, with lawmakers arguing that the attorney general’s decision not to prosecute does not settle the broader questions surrounding the state payments and political contributions. Senate Republicans have said their inquiry will examine the matter further and could produce recommendations for changes to state law and oversight.

The probe was initially led by Republican Sen. Jake Hoffman, chairman of the Senate Government Committee. Hoffman came under scrutiny of his own after it was reported that his consulting businesses were receiving substantial payments connected to efforts supporting Republican gubernatorial candidate Andy Biggs, who is challenging Hobbs. Hoffman subsequently stepped aside from leading the investigation, and the matter was transferred to the Senate Appropriations Committee chaired by Republican Sen. David Farnsworth.

The leadership change is intended to address concerns surrounding Hoffman’s involvement while allowing the Senate investigation to continue. Farnsworth said moving the inquiry to the Appropriations Committee does not narrow the issues being examined.

Gould brings extensive legal experience to the investigation. He served on the Arizona Supreme Court from 2016 to 2021 after being appointed by Republican Gov. Doug Ducey. He previously served as a judge on the Arizona Court of Appeals and as a judge on the Yuma County Superior Court, as well as a prosecutor in Maricopa and Yuma counties. Gould also ran unsuccessfully for Arizona attorney general in the 2022 Republican primary.

The Sunshine Residential Homes controversy has continued to draw attention because the company’s political contributions and subsequent dealings with the state occurred against the backdrop of Hobbs’ administration overseeing the Department of Child Safety. Other investigations are also underway, including inquiries by the Arizona Auditor General and Maricopa County Attorney’s Office.

The Senate is expected to hold a hearing and eventually issue a written report detailing its findings. While Mayes’ investigation concluded that there was insufficient evidence for a criminal bribery charge, the Senate inquiry could keep questions about Hobbs, Sunshine Residential Homes, and state contracting practices in the spotlight as the governor campaigns for another term.