(The Center Square) – Attorney General Kris Mayes determined that the Arizona Commerce Authority CEO forums violated the state constitution gift clause, causing disagreement among state leaders.
The findings came as the result of an auditor general report from September that determined that $2.4 million was spent from 2018 to 2023 on five private CEO forums.
“As they currently exist, the CEO Forums violate the Gift Clause of the Arizona Constitution,” Attorney General Mayes said in a statement on Tuesday. “The current structure of the CEO Forums confers significant value on invited private executives and their guests without obtaining any identifiable value for the state.”
“While the ACA may hold forums that confer a nominal value on attendees, its past forums, including last year’s $2 million Super Bowl Forum and its planned 2024 Forums, do not come close to meeting that requirement,” the Attorney General added. “My office fully intends to uphold the state’s constitution and will seek to prevent any future illegal payment of public monies to private entities by the ACA.”
Christian Slater, a spokesman for Gov. Katie Hobbs, said that the governor is considering different options. Both Hobbs and Mayes are Democrats.
“Governor Hobbs disagrees,” Slater told The Center Square in an email. “The ACA plays a critical role in Arizona’s booming economy, attracting businesses from around the world and creating good-paying jobs for working Arizonans. Governor Hobbs will not let Texas and California beat Arizona in attracting jobs and businesses, and is evaluating all available options moving forward.”
The ACA also expressed dissent with the Attorney General’s findings.
“We disagree with the AG’s opinion. From the beginning of this program, we’ve conferred with internal and external legal counsel to ensure it aligns with all state requirements,” Patrick Ptak, Senior Vice President of Executive Initiatives at the ACA, said. “We are reviewing the AG’s opinion and will continue to work with legal counsel to consider next steps.”
Mayes’ announcement comes a week after Sen. Jake Hoffman, R-Queen Creek, and 10 other Republicans are pushing to repeal the Arizona Commerce Authority with Senate Bill 1044. The Center Square reported Friday that the Auditor General’s report is also playing a role in Hoffman’s argument to get rid of the authority, whereas Hobbs and the Arizona Chamber of Commerce are pushing for its continuance.
“The mission of supporting the creation of jobs has never been called into question. Unfortunately for the people of Arizona, the Arizona Commerce Authority has demonstrated gross mismanagement and negligence in the execution of that mission,” Hoffman said in a statement last week.
The ACA has played a role in bringing companies, including in the technology sector, to Arizona with incentives in hopes that they choose Arizona over other states with business friendly environments.
