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STATE BUSINESS

Governor, Queen Creek lawmaker clash over Arizona Commerce Authority

Posted 3/24/24

PHOENIX - A fight over the future of the Arizona Commerce Authority is turning into a war of wills between Democratic Gov. Katie Hobbs and Queen Creek Sen. Jake Hoffman.

Hobbs wants state …

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STATE BUSINESS

Governor, Queen Creek lawmaker clash over Arizona Commerce Authority

Posted

PHOENIX - A fight over the future of the Arizona Commerce Authority is turning into a war of wills between Democratic Gov. Katie Hobbs and Queen Creek Sen. Jake Hoffman.

Hobbs wants state lawmakers to breathe new life into the quasi-public agency that is responsible for luring business to Arizona and doling out incentives to make that happen.

Hoffman says the agency is flawed, not just in its mission but how it carries it out. And Exhibit No. 1 was the slap the authority received from Attorney General Kris Mayes for spending millions in public dollars to entertain corporate big-wigs at sporting events.

Absent legislative action, the authority will cease to exist on July 1.

The state House, in a bipartisan vote last month, agreed to continue the agency for four additional years. That has the backing of not just Hobbs but the Arizona Chamber of Commerce and Industry.

That sent HB 2417 to the Senate where it was assigned to the Government Committee that Hoffman chairs. He refused to give it a hearing.

Instead, the Queen Creek Republican crafted his own proposal to abolish the authority entirely, transferring most of the duties to other state agencies. And his bill, HB 2471, also partly repeals some of the tax credits that have been used as incentives.

The measure was approved Thursday on a 4-3 party-line vote. It now awaits a vote in the full Senate.

All that sets the stage for a showdown.

It may be that business groups who support the authority and its work could deny Hoffman the necessary 16 votes he needs to dismantle the agency.

But it is plausible that there aren't enough Republican votes in the Senate to keep the agency alive as is.

Even with support from Hobbs and senators from her own party, no bill advances unless at least nine of the 16 GOP senators agree.

From Hoffman's perspective, either outcome is a win: The agency still goes away.

For the moment, that could mean the next move is up to the governor. After Thursday's vote, Hobbs has indicated she is willing to compromise - a bit.

"Moving forward, I agree there is a role for improved guardrails to protect taxpayer dollars in the Arizona Commerce Authority,'' she said in a prepared statement. The governor said she looks forward to working with lawmakers "to deliver that accountability across state government.''

But Hobbs' olive branch also came with a barb.

The governor also took the opportunity to take a dig at GOP lawmakers who support vouchers of tax dollars to send children to private and parochial schools.

She said they should provide that same oversight over the "unaccountable and unsustainable'' program of universal vouchers "that allows taxpayers to fund luxury car driving lessons, ski trips and water park passes.''

For the moment, though, Hoffman isn't talking compromise.

"My job as a legislator is to put forward smart, thoughtful, well-reasoned legislation, which is what we've done in the ACA repeal and consolidation bill,'' he told Capitol Media Services.

We’d like to invite our readers to submit their civil comments on this issue. Email AZOpinions@iniusa.org.