(The Center Square) – A group of Arizona Republican lawmakers is seeking to end the Arizona Commerce Authority after the Auditor General took a critical look at the agency as part of a sunset review.
The agency has played a key role in incentivizing businesses to invest into state, including through “5 private CEO forums” in which $2.4 million was spent from 2018 to 2023, including a “Super Bowl sponsorship” package last year.
In September, the Auditor General said that the agency “is at increased risk of fraud and waste of public monies because it lacked documentation it verified businesses met some requirements for nearly $11 million in incentives.” The report is serving as the basis for the bill, according to Sen. Jake Hoffman, R- Queen Creek, who’s leading the effort.
“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 told The Center Square in a statement.
“The Auditor General’s report details incredibly concerning failures in oversight and accountability with taxpayer dollars,” he added.
However, Democratic Gov. Katie Hobbs is hoping to see the agency be continued, and criticized Hoffman for his efforts, saying that Queen Creek benefitted from the ACA’s efforts to get LG Energy Solution to invest billions into a battery plant last year.
“Well, I think it’s very shortsighted and in the State of the State, I laid out the incredible trajectory that we’re on economically in our state. The Arizona Commerce Authority has been instrumental in that. And you know, Jake Hoffman has been the loudest voice in calling for its full repeal, and I would like to ask him if he wants to stand up to his constituents and say, you don’t need the jobs that the LG Battery plant in Queen Creek is providing, you know, he’s the one that needs to answer for that,” Hobbs told reporters on Friday morning.
Hoffman fired back at Hobbs’ remarks, calling it merely a political jab.
“It’s ironic that Hobbs is attempting to use the planned LG battery plant in my district as leverage, given the fact that she is playing political games by blocking the disbursement of nearly $90 million in critically needed funds to improve the SR24 infrastructure for that plant,” he said.
“If Katie Hobbs wants to keep playing petty partisan games, that’s her choice, but I’m not going to stoop to her level. I will continue working toward an efficient, effective, accountable government that works for everyone,” the Republican continued.
Groups such as the Arizona Chamber of Commerce and Industry are also hoping the agency remains intact, as they say it has played a crucial role in highlighting Arizona’s business environment.
“Renewing the Arizona Commerce Authority is vital to our economy,” said Chamber President and CEO Danny Seiden. “Failing to do so would be a black eye on our state and a job killer. We are always open to reforms that are reasonable and responsible, and are happy to have that discussion. But the ACA is already among the most accountable and transparent programs of its kind in the country, and we won’t support anything that would cripple Arizona’s ability to attract new businesses and jobs.”
Hobbs said she is open to reforming the agency based on the Auditor General’s findings.
“Certainly, we’re looking at the Auditor General’s report and looking at what improvements we need to make. Absolutely,” she said.
However, Capitol Media Services noted that the bill is just one component that could put the agency as risk of being abolished, as the legislature could also simply not vote in favor of keeping the ACA around.
