As Sunshine Residential Homes remains at the center of an ongoing investigation into alleged “pay-to-play” conduct involving Gov. Katie Hobbs, public records link founder and CEO Simon Kottoor to a Paradise Valley residence that Zillow estimates is worth nearly $10 million. The property has drawn renewed attention amid scrutiny of Sunshine’s political donations and subsequent state-approved rate increases.
Arizona campaign finance records reviewed by AZ Free News show that Gov. Katie Hobbs was the only Arizona candidate to receive contributions from Simon and Elizabeth Kottoor during the 2022 and 2024 election cycles. Simon Kottoor’s only other recorded contribution to a political candidate was a 2023 donation to New York Democratic congressional candidate Kevin Thomas.
Simon Kottoor founded Sunshine Residential Homes (formerly Sunshine Group Homes) in 1996, according to the company’s website. Sunshine says it provides congregate foster placements for Arizona children, has served more than 25,000 children since its founding, and currently has more than 300 children in care with approximately 200 employees.
Maricopa County property records reviewed by AZ Free News list the residence under the Kottoor Family Trust, with Simon M. Kottoor and Elizabeth Kottoor named as trustees. AZ Free News has withheld the street address from publication.
Zillow describes the property as a 7,719-square-foot, five-bedroom, six-bathroom home on 1.08 acres and estimates its value at approximately $9.53 million. Realtor.com estimates the property’s value at about $8.71 million and reports it last sold for $1.55 million in 2020.
Sunshine Residential Homes and Kottoor have faced scrutiny over political donations connected to Hobbs and subsequent state-approved rate increases. The Arizona Republic reported in June 2024 that Sunshine Residential Homes received a large rate hike from the Arizona Department of Child Safety (DCS) after making six-figure contributions to Hobbs’ inauguration fund and the Arizona Democratic Party. The outlet reported that Sunshine applied for a rate increase in December 2022, was denied in February 2023, then applied again in May 2023 and was approved, citing DCS records.
The Republicreported in July 2024 that both the Kottoors’ and Sunshine Residential Homes’ donations to Hobbs and the Arizona Democratic Party amounted to approximately $420,000 from 2022-2024.
According to the Arizona Capitol Times, Sunshine Residential Homes gave $100,000 to Hobbs’ inaugural fund and separately gave $300,000 to the Arizona Democratic Party. The outlet also reported that the Arizona Republic found Hobbs personally called Kottoor shortly after winning the 2022 election and asked him to serve as a gold-level sponsor of her inauguration. The same report said the Department of Child Safety later increased payments to Sunshine in 2023 to nearly 40 percent above the average for other group homes.
Kottoor was also on Hobbs’ inaugural committee, and he and his wife made maximum contributions to Hobbs’ campaign, according to reporting cited by Governing. That report also noted that Hobbs attended a private event at the Kottoor’s Paradise Valley residence.
Calls for investigation from Arizona lawmakers followed within days of the initial reporting.
From @GovernorHobbs spokesperson: "Like every other 'investigation' launched by this chaotic and radical legislature, this is another desperate, partisan stunt. It will do nothing but show the administration put the best interest of Arizona first." https://t.co/taQAZTmb52
The Arizona Attorney General’s Office opened an investigation into the Sunshine Residential matter in June 2024. The office’s public records archive lists communications and records related to the Sunshine Residential Homes investigation, including correspondence with Maricopa County Attorney Rachel Mitchell and Auditor General Lindsey Perry, as well as a criminal referral.
I requested an investigation by the Maricopa County Attorney into Governor Hobbs' alleged "pay to play" scheme. Arizona taxpayers deserve financial accountability. Giving state dollars to political donors is a grave misuse of public funds.
— Arizona Treasurer Kimberly Yee (@AZTreasurerYee) June 10, 2024
Hobbs’ office has denied wrongdoing. Axios reported that Hobbs spokesman Christian Slater said the administration would be “cleared of wrongdoing” and called the allegations partisan. Slater and DCS spokesman Darren DaRonco told Axios that Hobbs and her office had no involvement in agency decisions regarding Sunshine Residential Homes. Sunshine told the Arizona Republic that it remained committed to cooperating with any inquiry, Axios reported.
The investigation remains a prominent political issue in Arizona well into 2026. In April, KJZZ reported that Mayes’ team had asked Hobbs for an interview as part of the investigation and that Hobbs would not publicly commit to sitting for one. KJZZ reported that Hobbs continued to deny wrongdoing.
Republican lawmakers have cited the Sunshine controversy as they advance legislation requiring more disclosure from companies seeking state contracts. The Arizona Senate Republican Caucus announced last week that SB 1186, sponsored by Arizona Senate President Pro-Tempore T.J. Shope (R-LD16), had been sent to Hobbs’ desk. The bill would require companies seeking taxpayer-funded contracts and grants to disclose political donations, gifts, and other things of value connected to the governor and affiliated political organizations. A House summary of SB 1186 states that the measure establishes disclosure requirements for the request-for-proposal and grant-application processes.
Hobbs announced her own ethics reform proposal in February, calling it a sweeping transparency package intended to strengthen public trust in government. According to the Governor’s Office, the proposal includes a public transparency and disclosure database, contracting reforms, and a lobbyist gift ban.
The Sunshine Residential Homes matter remains under investigation, and no public finding of wrongdoing by Hobbs, Kottoor, or Sunshine Residential Homes has been announced.
The Republican-led Arizona legislature has submitted a legislative package to Gov. Katie Hobbs that they say will further strengthen parental rights and protections for children.
Among these bills are HB 2249, which would expand on Arizona’s current parental bill of rights by requiring schools to notify and obtain written consent from parents prior to facilitating a child’s social transition of their biological gender.
Social transitioning includes the usage of preferred pronouns and provision of accommodations that align with the child’s gender identity to include access to nonbiological restrooms and locker rooms.
Additionally, SB 1095 would outlaw gender transition procedure referrals or procedures for minors, and SB 1094 would allow individuals to take a civil cause of action against physicians who perform gender reassignment surgeries on minors.
Arizona banned gender reassignment surgeries on minors in 2022, and excludes gender reassignment procedures from Medicaid coverage. SB 1095 extends that ban to medications, as in puberty blockers and cross-sex hormones.
Senate Majority Leader John Kavanagh (LD-3), who sponsored SB 1094, said in a press release last week that these latest bills were created in response to requests from parents.
“Arizona families have made clear that they want commonsense protections for children and stronger parental rights,” said Kavanagh. “This legislation ensures that parents remain involved in critical decisions impacting their children while protecting minors from irreversible procedures with lifelong consequences.”
State Sen. Janae Shamp (LD-29), sponsor of SB 1015, said regulation was necessary to ensure accountability for irreversible procedures, and that a lack of regulation would essentially subject children to political experimentation.
“Arizona children are not political experiments, and parents should never be cut out of life-altering decisions involving their own kids,” said Shamp. “For too long, activists have pushed radical gender ideology into medicine, education, and government while silencing common sense and ignoring the concerns of families. These bills draw a clear line.”
GOP lawmakers have had trouble codifying bills addressing the gender transition of minors under Hobbs. In accordance with the stance of the Democratic Party, Hobbs supports gender transitions for minors and typically spurns enacting statutory pressures on this modern social practice.
The governor has consistently vetoed bills which would impose restrictions on individuals who identify as transgender. Last year, Hobbs vetoed bills that would have prohibited amending birth certificates and driver’s licenses to reflect gender identity rather than biological gender.
Hobbs also issued an executive order her first year in office requiring state employee healthcare plans to cover gender transition surgeries. Every summer since taking office, Hobbs has flown the Pride flag above the American flag in honor of Pride month.
We dropped the Pride banner from the Executive Tower to kick off Pride Month. To our LGBTQ+ community: I will always stand up for your freedom to be who you are, love who you love and your right to live with dignity and respect. pic.twitter.com/ffO9InrjX0
— Governor Katie Hobbs (@GovernorHobbs) June 2, 2026
Hobbs’ husband, Patrick Goodman, was formerly a counselor specializing in youth gender transitions at the Phoenix Children’s Hospital.
There’s also been resistance to Arizona regulation on transgenderism from the courts. In 2023, a federal court blocked Republican lawmakers’ attempt at enacting a ban on biological males who identify as females from participating in women’s and girls’ sports, the Save Women’s Sports Act. Petersen v. Doe (formerly Doe v. Horne) is pending petition with the Supreme Court.
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
Arizona’s Republican state lawmakers are challenging Gov. Katie Hobbs to sign into law a government transparency bill amid the ongoing “pay-to-play” scandal involving the governor.
This past week, the Republican-led legislature sent SB 1186 to Hobbs’ desk. The legislation was inspired partly by ongoing legal challenges to the legality of the Arizona Medicaid program’s contract award system, and partly by ongoing allegations that Hobbs arranged for a unique rate increase to one of her top campaign donors.
Sunshine Residential Homes, a group home operator, donated more than $400,000 collectively to Hobbs’ gubernatorial campaign, Hobbs’ inaugural fund, and the Arizona Democratic Party.
Once Hobbs took office, the Arizona Department of Child Safety gave Sunshine Residential Homes a 30% rate increase, though no other group homes received rate increases and over a dozen contracts were terminated. This was reported initially by the Arizona Republic in 2024, along with another key detail indicating a close relationship between the governor and the company: Hobbs fine dining at the mansion of Sunshine Residential Homes CEO Simon Kottoor.
Hobbs’ inaugural fund — which reached nearly $2 million — was another funding source that was shrouded in secrecy. The inauguration event cost about $200,000, leaving the million-plus as a nonprofit source of funds to be spent at Hobbs’ discretion.
Attorney General Kris Mayes, a fellow Democrat, has maintained that her investigation into the alleged pay-to-play arrangement remains ongoing. Hobbs has yet to take Mayes up on her request for an interview.
The proposed legislation from Arizona’s Republican lawmakers would require companies that obtain state contracts or certain state grants to disclose anything of value provided in the previous five years to the governor, campaign-related entities, inaugural funds, and organizations making independent expenditures supporting or opposing the governor or their political opponents.
The legislation would also prohibit state agencies and employees from destroying notes created during the evaluation
The bill sponsor, State Sen. T.J. Shope (R-LD16), said financial disclosures should come before the state awards any contracts and grants, in order to ensure transparency and fairness in the process.
“Arizonans have watched one contracting controversy after another and are rightly asking whether political connections are influencing decisions involving billions of taxpayer dollars,” said Shope. “Governor Hobbs now has an opportunity to show Arizonans she supports transparency in government by signing this legislation.”
An advisory team was formed in the House to address this alleged pay-to-play scheme by Hobbs, and they also have their own investigation underway. The lawmakers hired outside counsel from out of state — Justin Smith with the Missouri-based James Otis Law Group — to conduct an independent investigation.
Smith led a battery and defamation lawsuit against E. Jean Carroll, an accuser of President Donald Trump.
That independent investigation initiated by lawmakers is ongoing. All findings from the outside counsel go to the advisory team and House leadership.
Maricopa County Attorney Rachel Mitchell and Auditor General Lindsey Perry are also coordinating on an investigation into the matter involving Hobbs and Sunshine Residential Homes. The House advisory team announced last year it would coordinate with Mitchell and Perry on their investigation.
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Arizona is on track to become one of the first states in the nation to modernize workplace radiation safety standards for health care professionals after lawmakers approved legislation aimed at reducing long-term health risks associated with occupational radiation exposure.
Senate Bill 1121, sponsored by Senator Carine Werner (R-LD4), passed the Arizona Legislature this week, and now awaits action by Governor Katie Hobbs.
The measure would allow hospitals equipped with advanced radiation protection systems to utilize those technologies in place of requiring medical personnel to wear traditional lead aprons during certain procedures involving real-time X-ray imaging.
The legislation primarily applies to physicians, nurses, physician assistants and other health care professionals working in cardiac catheterization laboratories and procedure rooms where ionizing radiation is routinely used.
Current radiation safety protocols often require medical personnel to wear lead aprons weighing more than 15 pounds during procedures. Studies have linked long-term occupational radiation exposure to increased risks of cancer, cataracts, thyroid disorders, reproductive complications, and other health concerns. Additionally, years of wearing heavy protective equipment have been associated with chronic neck, back, and orthopedic injuries.
“Medical professionals should not have to choose between protecting their patients and protecting their own health,” stated Senator Werner. “The technology exists today to shield workers from radiation exposure more effectively while reducing the physical strain caused by wearing heavy lead aprons for hours at a time. This bill allows hospitals to use those advancements while maintaining strict safety standards and real-time monitoring.”
Under SB 1121, hospitals performing cardiac catheterization procedures may not require health care workers to wear lead aprons if the procedure room is equipped with a qualifying radiation protection system that is being used according to manufacturer specifications. The bill defines radiation protection system as shielding technology that provides protections equal to or greater than the effectiveness of a 0.25-millimeter lead-equivalent apron.
The legislation also includes safeguards to ensure continued monitoring of radiation exposure. Health care professionals who choose not to wear lead aprons while using approved radiation protection systems would be required to wear real-time dosimeters capable of continuously monitoring radiation exposure during procedures.
Hospitals would retain the authority to require lead aprons, thyroid collars, or other protective equipment if a radiation safety officer determines that staff exposure levels could approach occupational dose thresholds or elevated exposure levels under the “As Low As Reasonably Achievable” (ALARA) standard.
The bill also preserves the right of individual health care workers to voluntarily wear lead aprons regardless of whether a radiation protection system is in use.
“This is a commonsense modernization of workplace safety standards,” said Werner. “When we have proven technology that can better protect the people performing these procedures every day, we should be embracing it. Arizona’s doctors, nurses, and medical staff deserve the safest working environment possible so they can continue providing exceptional care to patients across our state.”
If signed into law, Arizona would join a small number of states recognizing emerging radiation protection technologies as an alternative to traditional lead-apron requirements in certain medical settings.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
The Arizona Department of Water Resources (ADWR) exceeded its authority under state law, the Maricopa County Superior Court ruled Monday.
The court determined in an under advisement ruling in this ongoing case that, again, ADWR lacked authority under state law to impose a new obligation on home developers to secure additional water supply.
The Home Builders Association of Central Arizona and Arizona Senate President Warren Petersen (R-LD14) have challenged this and other ADWR policies initiated at the behest of Gov. Katie Hobbs.
Maricopa County Superior Court Judge Scott Blaney said this additional requirement by ADWR went beyond what state law required. Per Blaney, the law only requires developers to show 100 years of continuous availability of water sufficient to satisfy water needs for the use proposed by the developer.
State law limited ADWR to two pathways: either developers could obtain a certificate of assured water supply from ADWR or they could obtain a commitment of service from a municipal provider such as a city, town, or private company with an ADWR assurance of water supply designation.
However, under a new rule pushed by the Hobbs administration, R12-15-710(H), ADWR limited developers to a third, new pathway for assured water supply designation. This pathway involved a newly created category of water availability ADWR called “New Alternative Water Supplies,” and required developers to secure an additional 25% of this new category beyond their proposed usage needs.
The ADWR changes under Hobbs resulted in what effectively became a housing moratorium. New building progress in the Valley ground to a halt.
Blaney ruled ADWR lacked the authority to create this third, new pathway. He declared that the plain language of the statute only requires a 100-year guarantee of water needs satisfaction.
“The Legislature created two paths to establish an assured water supply to develop a subdivision: obtain a certificate; or obtain a designation,” said Blaney. “Through the implementation of its moratorium and its nearly simultaneous promulgation of a rule that demands more water than the statute requires, ADWR has in effect attempted to rewrite the governing statute at the agency level.”
Blaney also rejected ADWR’s argument that this third pathway was a voluntary, alternative path out of several for developers. He sided with the developer’s assessment that ADWR had unlawfully restricted developers to a single pathway.
The court ruling on Monday blocked ADWR from enforcing the rule.
In April, the Maricopa County Superior Court struck down ADWR’s housing moratorium articulated in several rules pertaining to unmet water demand and depth-to-water limits.
Similar to this most recent ruling, Blaney found that ADWR sought to break necessary limitations on administrative agency powers and had unlawfully implemented two agency rules without following the Administrative Procedures Act.
AZ Free Newsreported last month that the ADWR-spurred housing moratorium may put taxpayers on the hook for more than $1 billion, due to ongoing and potential future builder compensation claims.
ADWR plans to appeal pending the final ruling.
When Hobbs took office, she formed a Water Policy Council to overhaul the state’s approach to groundwater management. Two committees were formed, one of which addressed assured water supply.
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