Arizona prosecutors will not criminally charge Gov. Katie Hobbs over allegations that her administration engaged in a pay-to-play scheme involving a group home company, Attorney General Kris Mayes announced Friday.

The investigation centered on Sunshine Residential Homes, which contributed $100,000 to Hobbs’ inaugural fund and additional money to the Arizona Democratic Party before receiving a 30% increase in its state payment rate. 

Hobbs, a Democrat, has denied wrongdoing and said she was not involved in the decision to approve the increase.

“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.

Mayes added that the investigation nonetheless highlighted the need for greater transparency in political donations and called for legislative reforms.

The decision comes as Hobbs seeks a second term and faces Republican Rep. Andy Biggs in the November election. Biggs has used the investigation as a campaign issue in attacko ads.

A separate investigation by Maricopa County Attorney Rachel Mitchell and the state auditor general remains ongoing, according to the Associated Press.

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