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Arizona Senate's Government Committee votes to consolidate or revise AZ Commerce Authority

Arizona Senate’s Government Committee told ABC15 the ACA needs to be 'cleaned up'
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PHOENIX — After a spat this week with AG Kris Mayes over Super Bowl tickets given to visiting CEOs, there is now more trouble potentially brewing for the Arizona Commerce Authority.

The chair of the Arizona Senate’s Government Committee told ABC15 the ACA needs to be cleaned up.

“The ACA has demonstrated gross mismanagement and negligence in the execution of a really important mission for our state, which is to attract and support the private sector in attracting good high-paying jobs,” said Committee Chair Republican Senator Jake Hoffman.

In September, the Auditor General issued a report accusing the ACA of lacking documentation for grant programs and providing millions in free tickets and experiences to visiting CEOs at the Super Bowl and Waste Management Phoenix Open.

In front of the committee Wednesday, ACA President and CEO Sandra Watson defended the organization’s efforts and touted the success they’ve had in attracting industry.

“Arizona has a global leadership brand now in the semiconductor industry. We could not say that five, six years ago,” Watson said.

“She claimed that they were putting in place processes to resolve some of these issues. Yet that's exactly what she told the legislature in 2015 when the last auditor general's report came out,” Hoffman said.

Governor Katie Hobbs had urged legislators to pass continuation for the ACA, but the committee instead voted 4-3 to revise or consolidate the ACA.

Afterward, the Governor sent the following statement to ABC15:

“Arizona’s economy is booming, with more Arizonans working than ever before. The world’s leading companies in advanced manufacturing, semiconductor chip production, and aerospace and defense, have all made investments in our communities, resulting in good-paying jobs for everyday Arizonans. This is in large part thanks to the Arizona Commerce Authority. We must pass continuation so Arizonans don’t lose out on good-paying jobs to Texas and California.

“Moving forward, I agree there is a role for improved guardrails to protect taxpayer dollars in the Arizona Commerce Authority processes. I look forward to members of the legislature joining me to deliver that accountability across state government, including over the unaccountable and unsustainable ESA voucher program that allows taxpayers to fund luxury car driving lessons, ski trips, and water park passes.”

Hoffman told ABC15 that legislators will now begin negotiations on what changes will be best to revise or consolidate the ACA.