Three Arizona House Republicans have requested weekly, in-person briefings from Arizona Department of Water Resources (ADWR) Director Thomas Buschatzke on Colorado River negotiations, seeking the same information provided to Gov. Katie Hobbs.
In a September 4 letter, Reps. Gail Griffin (R-LD19), Neal Carter (R-LD15), and Chris Lopez (R-LD16) asked Buschatzke to meet with them and relevant agency staff and legal counsel at least once a week. The lawmakers proposed Tuesdays at 2 p.m., while offering to arrange another mutually agreeable time.
The request follows the federal government’s decision on Colorado River operations for 2027 and 2028, which drew mixed reactions from Arizona officials. Arizona would absorb approximately 61% of the total reductions across the three Lower Basin states, with a 760,000-acre-foot reduction compared with California’s 440,000 and Nevada’s 50,000.
Griffin chairs the House Natural Resources, Energy & Water Committee, where Lopez serves as its vice chair, and Carter is speaker pro tempore of the Arizona House of Representatives.
In the letter, the lawmakers cited the Legislature’s authority under A.R.S. § 45-106, which requires legislative approval by concurrent resolution before an agreement between the water resources director and the United States, another state, or a government involving Arizona’s sovereign rights or claims can take effect.
💧 Did you know?
Arizona’s water future depends on more than one source.
Colorado River water remains critical, but Arizona also relies on groundwater, reclaimed water, conservation, water storage, and new supply projects to support communities and future growth.
“Given our unique legislative role under A.R.S. § 45-106, we believe we are entitled to receive the same briefing you would deliver to the Governor’s office or the Governor herself, free from any filters or withholding of information,” the lawmakers wrote.
The requested meetings would allow members to receive updates, ask questions, and examine the factual, policy, and legal rationale for prospective offers, terms, or decisions. The lawmakers also asked to be informed of developments as they occur.
The letter also references two pieces of correspondence from August. They said Buschatzke confirmed on August 25 that implementing a Lower Basin Agreement would require legislative approval and committed to keeping House and Senate members informed of information relevant to their decision.
— Arizona Department of Water Resources (@azwater) September 4, 2026
The lawmakers also said Hobbs affirmed her commitment to providing relevant updates in an August 26 letter and directed Buschatzke to “continually update” them as requested.
Hobbs plans to call a special legislative session for lawmakers to vote on a water-sharing agreement between Arizona, Nevada, and California.
Hobbs highlighted her administration’s Colorado River negotiations in a June interview with 12 News. After the federal government released its proposed operating guidelines, she urged federal officials to adopt the Lower Basin states’ proposal and distribute water reductions equitably.
In August, the federal government came to an agreement with Arizona and the other Lower Basin states on Colorado River water usage. Under the deal, Arizona will lose about 61%: the most out of the Lower Basin states. The news was met with mixed reactions. Hobbs said the decision protected Arizona from deeper cuts. U.S. Rep. Juan Ciscomani (R-AZ-06) said his initial review indicated the plan avoided the most drastic options previously announced, while U.S. Rep. Greg Stanton (D-AZ-04) described the two-year reprieve as another short-term fix and called for durable agreements.
Scot Mussi, president of the Arizona Free Enterprise Club, called the deal “a total failure of leadership” in a statement posted to X. He stated that the deal “will place most of the cuts on new single family homes while data centers and apartments get unlimited water.” He added, “Conveniently, those big water users happen to be some of your biggest campaign contributors.”
This deal is a total failure of leadership. On top of that, this deal will place most of the cuts on new single family homes while data centers and apartments get unlimited water. Conveniently, those big water users happen to be some of your biggest campaign contributors. https://t.co/pLaenPuDCc
The Arizona Chamber of Commerce is advising residents opposed to data centers to go offline to prove their commitment.
The chamber issued a press release on Tuesday advising that those who wish to see a data center moratorium should “take that position to its logical conclusion” by entering its newly launched Arizona Offline Pledge.
The pledge requires participants to give up all technologies and services which rely on data centers, including social media, artificial intelligence, streaming services, online banking and digital payments, cloud storage, GPS navigation, video conferencing, and telehealth.
The chamber said data center expansion is necessary for modern life.
“Arizona can address legitimate concerns about data center growth without hitting pause on the infrastructure modern life depends on,” said the chamber.
For anyone ready to put a moratorium on new data centers, here’s your chance to really commit.
Take the Arizona Offline Pledge and give up the everyday benefits digital infrastructure makes possible: smartphones and social media, streaming and GPS, telehealth and online… pic.twitter.com/idU6D6PVUb
Courtney Coolidge, chamber executive vice president, said that halting in the face of opposition wasn’t an option.
“Concerns from communities shouldn’t be dismissed, and we aren’t suggesting a data center belongs on every corner,” said Coolidge. “But Arizona has never responded to difficult growth challenges by simply stopping. We solve problems.”
Among those leading on the call for a moratorium are Attorney General Kris Mayes, who called it “the only sane thing to do.” Mayes said Arizona was guilty of “excessive data center development” and was vulnerable to some of the most negative impacts from it.
“The Colorado River is in serious distress, and Wall Street firms are seeking to ship La Paz County’s groundwater to Phoenix to fuel the Valley’s growth — against the wishes of the county’s residents and leaders,” said Mayes. “We owe it to our communities, homeowners, and future generations of Arizonans to better manage our water and power needs before any new data center approvals are issued.”
The only sane thing to do is to pause the approval of new data centers.
Data centers are power- and water-intensive, and Arizona is challenged on both fronts right now.
Arizona may be one of the most exposed states in the country to the negative impacts of excessive data…
Earlier this summer, Gov. Katie Hobbs approved the budget passed by the Republican-led state legislature which included a three-year freeze on tax breaks for new data centers, but which did allow the construction of new data centers to continue.
Hobbs has also advocated for a water usage fee for new data centers — one cent for every gallon used, on par with what the average Arizona family pays — and the money collected would go into the Colorado River Protection Fund.
When we put people over data centers, the change isn’t just a line item—it’s felt at every kitchen table. I signed a 3-year pause on new data center tax breaks and invested that money into making childcare affordable and protecting healthcare and food assistance for Arizonans. pic.twitter.com/IRHTr3ehWg
— Governor Katie Hobbs (@GovernorHobbs) July 7, 2026
President Donald Trump issued a statement on Monday criticizing those opposed to data centers as desirous of “end[ing] up being backwards and poor,” and that these developments would result in “far lower” taxes and a greater number of jobs.
“If we kill the Golden Goose, you will only have yourselves to blame,” said Trump. “China could not be happier with this anti Data Center movement. Actually, they can’t believe it is happening!”
The head of the Arizona Republican Party is predicting that Attorney General Kris Mayes will face an investigation of her own for her alleged lack of investigation into Gov. Katie Hobbs.
Sergio Arellano stated in an interview with the “Conservative Circus” on Monday that Arizona Democrats should be “terrified” over the continued inquiries into Mayes.
“Kris Mayes didn’t just make Sunshine Residential Homes disappear; she may have just moved the spotlight directly onto herself,” said Arellano.
The Arizona Republican Party issued a statement accusing Hobbs of leading a “culture of corruption,” and endorsing the Republican nominee for governor, Rep. Andy Biggs (AZ-05).
Arizonans deserve better than Katie Hobbs’s Culture of Corruption.
Arellano also urged Republicans to issue the transcripts from their investigation into Mayes and Hobbs.
More than two years after launching an investigation based on media reports connecting Hobbs with an unusual rate increase for one of her major donors, Mayes released a short memorandum clearing Hobbs of pay-to-play corruption.
Sunshine Residential Homes, a major group home operator in the state, and its CEO, Simon Kottoor, are among the top donors to Hobbs’ campaign, legal fund, and inaugural fund. The company received substantial rate increases in 2023 and 2024 following years of denials before Hobbs took office.
The most recent denial occurred a month after Hobbs was sworn in. Several months later, following a dinner attended by Hobbs and her campaign chief at Kottoor’s residence, Sunshine Residential Homes received the rate increase it had sought — while other group home operators were denied increases or had their contracts cut entirely.
Mayes’ seven-page memorandum clearing Hobbs was criticized across the board not only for its length but for it allegedly revealing oversights concerning apparent evidence that some corruption had occurred.
Mayes maintained that the scope of her investigation was thorough; it included more than 100,000 documents. The attorney general suggested that the legislature was to blame for the perceived pay-to-play issues, and advocated for improved transparency laws.
Earlier this summer, Hobbs vetoed the sort of legislation Mayes suggested to ensure greater transparency. Hobbs claimed that because the legislation would also bring transparency to the Sunshine Residential Homes debacle, it was a “political stunt.”
Most recently, House Speaker Steve Montenegro (R-LD29) sent Mayes a letter demanding she provide answers to five questions indicating key contradictions and omissions in her investigation. Montenegro cited evidence from Department of Child Safety employee testimonies and contracting requirements as support for the scope of questioning.
“The Memorandum suggests your Office failed to pursue critical issues and reached conclusions that directly conflict with reliable evidence — including information provided by the very witnesses your Office claims to have interviewed,” said Montenegro. “Those failures raise the specter that your Memorandum was intended to influence the November election by attempting to inoculate the Governor from a perceived political vulnerability.”
Montenegro gave Mayes until Friday, September 4, to answer.
Senate President Warren Petersen (R-LD14) — who is the Republican nominee for attorney general — has also called on Mayes to release the records that informed her decision to clear Hobbs of wrongdoing. Petersen called Mayes’ memorandum a “cliffs notes report” that withheld critical information from the public.
An Arizona House special advisory team and the Maricopa County Attorney’s Office are still investigating the pay-to-play allegations against Hobbs, despite an initial order from Mayes to stand down as her office conducted its investigation.
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
Republican Rep. Abraham Hamadeh (AZ-08) said Arizona has a “captured government” after Democratic Attorney General Kris Mayes declined to prosecute Gov. Katie Hobbs over allegations involving political contributions connected to Sunshine Residential Homes and rate increases the company received from the Arizona Department of Child Safety (DCS).
Hamadeh made the remarks during an appearance on James T. Harris’ “The Conservative Circus,” calling Mayes’ two-year criminal investigation “a sham” that he said was intended to clear Hobbs before the November election.
“Arizona has a captured government right now,” Hamadeh said.
Congressman Hamadeh is not surprised that @KrisMayes dropped the investigation into crooked @KatieHobbs.
Mayes is the illegitimate attorney general BECAUSE Hobbs withheld evidence when she was Secretary of State. They are in cahoots. This was a sham released sixty days before… pic.twitter.com/OJwDggjUKw
— Office of Congressman Abe Hamadeh (@RepAbeHamadeh) August 25, 2026
“The most important thing we have to do this November is get rid of both Kris Mayes and Katie Hobbs.” Hamadeh said. Hamadeh accused Mayes and Hobbs of protecting one another and said the state’s news media had failed to hold either official accountable.
“The attorney general is not going to hold the governor accountable,” Hamadeh said. “This is what you call a captured government. So it is up to We the People to show them accountability by voting them out of office.”
The congressman also tied the decision to his continuing claim that Mayes is an “illegitimate attorney general,” arguing that Hobbs withheld evidence while serving as secretary of state during Hamadeh’s unsuccessful challenge to the 2022 attorney general election. Mayes defeated Hamadeh by 280 votes after a recount, a result later recounted in an Arizona Court of Appeals decision rejecting Hamadeh’s request for a new trial.
Mayes announced earlier this month that her office found no evidence of a quid pro quo connecting Sunshine’s political contributions to the company’s DCS rate increases.
“After two years of investigation, consisting of multiple interviews, reviews of campaign-finance records, procurement records, bank documents, and State emails and chats, totaling over one terabyte of data, including more than 100,000 documents, the investigation has not uncovered any evidence of the necessary quid pro quo to support a bribery charge,” Mayes said.
The attorney general’s seven-page legal memorandum said investigators conducted 12 interviews and reviewed campaign-finance records, procurement documents, bank records, and state communications. The memorandum concluded that prosecutors lacked evidence establishing a reasonable likelihood of conviction for bribery or related offenses.
Hobbs declined an in-person interview and submitted two written statements through her attorneys on Aug. 17, according to the memorandum. She stated that she had never discussed Sunshine’s rates or DCS contracting decisions with Sunshine founder and CEO Simon Kottoor or anyone affiliated with the company. Hobbs also denied directing anyone to intervene and said Sunshine’s political contributions did not influence state agency decisions.
Sunshine gave $200,000 to the Arizona Democratic Party before Hobbs’ 2022 election, $100,000 to her inaugural fund and another $100,000 to the state party in August 2023. Kottoor and his wife, Elizabeth, also made contributions to Hobbs’ gubernatorial campaigns.
The company received a mid-contract rate increase in May 2023 that raised its payment to $195 per bed, followed by an increase to $234 per bed during an April 2024 contract renewal. The AG memorandum said Sunshine’s rate increased 56% between 2019 and 2024. Two other providers received larger percentage increases over that period while retaining lower daily rates.
Mayes’ Investigation found that DCS officials knew about Sunshine’s political contributions as they considered its request. Then-DCS official Robert Navarro told colleagues during a February 2023 meeting that Sunshine was likely to seek an increase and was a donor to Hobbs, according to the memorandum. Navarro told investigators that the donations created perceived pressure. The Attorney General’s Office concluded that any perceived pressure resulted from Navarro’s own knowledge of the contributions and found no evidence that Hobbs or her office directed DCS to increase Sunshine’s rate.
The memorandum concluded that Sunshine’s rate increases resulted from its leverage as one of Arizona’s largest congregate-care providers. Sunshine accounted for approximately 20% to 25% of the state’s non-Division of Developmental Disabilities group-home beds. DCS officials told investigators that the company had threatened to move beds to the federal Office of Refugee Resettlement, which paid higher rates to house unaccompanied migrant children. Officials said losing Sunshine’s capacity would have strained the foster-care system and reduced beds available to keep siblings together.
Mayes called for legislation increasing transparency around political contributions from state contractors when she announced the decision. Hobbs previously vetoed two bills sponsored by Republican Senate President Pro Tempore T.J. Shope (R-LD16) that would have required certain companies seeking state contracts or grants to disclose political contributions and required agencies to retain procurement records.
Mayes’ criminal division recommended closing its pay-to-play investigation while keeping the matter open for the limited purpose of assisting the Arizona Auditor General. A separate review involving the Auditor General and Maricopa County Attorney Rachel Mitchell remains ongoing. The Arizona House has also commissioned an independent investigation.
Republican nominee for attorney general Warren Petersen is calling on Attorney General Kris Mayes to be more transparent about her decision to dismiss the pay-to-play investigation into Gov. Katie Hobbs.
Petersen said in a statement that Mayes has a duty to release all interview and deposition transcripts, referring to the seven-page analysis released earlier this week as a “cliffs notes report” lacking key information beneficial to the public.
“If Mayes is confident in the integrity of her investigation, she should have no problem allowing Arizonans to judge for themselves,” said Petersen. “Release the files.”
Mayes opened up her investigation into Hobbs more than two years ago based on allegations that the governor had engaged in pay-to-play with Sunshine Residential Homes, a group home operator that served as a major donor to Hobbs’ inauguration fund, her secret legal fund, and the Arizona Democratic Party.
A timeline of events and donations first put together in a June 2024 report by the Arizona Republic indicated that Hobbs had used her authority to ensure Sunshine Residential Homes got the rate increase it had sought and initially failed to secure.
Although Republican elected officials positioned themselves as the first to take investigatory action, Mayes called for them to stand down and announced she would take on the investigation. Maricopa County Attorney Rachel Mitchell and Auditor General Lindsey Perry were told that their investigatory efforts would be “[in]appropriate” that would potentially “jeopardize the integrity” of the investigation into Hobbs.
However, both Mitchell and Perry have continued their independent investigatory efforts. Erin Pellett, a spokesperson for Mitchell, was unable to provide an estimated end date for their investigation.
An advisory team formed specially within the Arizona House for the purpose of investigating the pay-to-play allegations also obtained outside counsel earlier this year and launched their own investigation into the matter. That team also has not published its findings.
And then last week — a little more than two years after Mayes announced her investigation, and several days after Hobbs made clear in a letter from lawyers that she wouldn’t do an in-person interview with Mayes — Mayes published a seven-page memorandum clearing Hobbs of any wrongdoing.
The attorney general declared that her investigation of more than 100,000 records, including the records of 12 interviews with others close to the matter, had failed to uncover evidence of bribery.
Some felt the investigation fell improperly short in its scope. Mayes had been asking Hobbs to sit for questioning for months, but never secured that interview. The language of the report also indicated that modes of communication outside of official state channels weren’t investigated.
Arizona Republican Party Chair Sergio Arellano toldThe Center Square that Hobbs had lied about sitting for an interview, and that Mayes had shielded Hobbs from taking accountability on her lack of transparency.
“For months, Hobbs looked Arizonans in the eye and claimed she was ‘in touch’ with the [attorney general’s] office. That was a straight-up lie. She explicitly refused to sit for an interview,” said Arellano. “This is the Arizona Democratic Socialist playbook, plain as day: Delay, deny, delete the evidence, and declare ‘no quid pro quo’ when the political calendar gets tight.”
Petersen similarly accused Mayes of protecting Hobbs.
“Kris Mayes made a calculated decision to protect her political ally, Katie Hobbs, in the now-infamous pay-to-play scandal,” said Petersen. “After dragging the investigation out for two years, Mayes buried her announcement on a Friday afternoon, knowing the weekend would temper questions about the integrity of her investigation. Arizonans deserve transparency and truth about what happened with the Hobbs’ [sic] Administration and Sunshine Residential.”
I'm calling on Kris Mayes to release all transcripts for any interviews and depositions from the pay-to-play scandal. She needs to be transparent and share the evidence with the public. Her cliff notes report is missing important information that everyone deserves to hear… pic.twitter.com/wXvCoRB8sx
