by Daniel Stefanski | Jun 20, 2023 | News
By Daniel Stefanski |
Arizona Governor Katie Hobbs’ historic veto streak has uncovered another disappointed legislator.
On Monday, Republican Senator Frank Carroll issued a press release to highlight Governor Hobbs’ veto of his bill, SB 1500, “which would have empowered (the) Arizona State Treasurer to eliminate environmental, social, and governance (ESG) consideration from all state investments by requiring investments be made in the sole interest of the taxpayer.”
Hobbs justified her reasoning for the veto in a customary letter to the Arizona Senate President, writing, “Politicizing decisions best made by the state’s investment professionals can harm our state’s long-term fiscal health.”
Senator Carroll was unhappy with the governor’s action on his proposal, saying, “My interest is in protecting taxpayer dollars and protecting pensions. I sponsored this bill to get politics out of the pensions of public employees and public officials who have earned the right to financial stability after dedicating their lives to public service. By definition, pecuniary means, ‘relating to or consisting of money.’ That is the criteria by which taxpayer dollars should be invested, not a social system used to push political agendas.”
The lawmaker’s release further explained why SB 1500 would have been so important for Arizona, stating, “An investment evaluation, conducted by the State Treasurer, must be based on financial and economic factors, and not to promote nonpecuniary benefits, other nonpecuniary social goals or take unnecessary investment risks. This bill aimed to protect government employees who pay into a retirement fund, where that money is then invested by the State Treasurer. The growing practice of ESG policies being imposed on companies is cause for concern, as it deviates from typical investing and business practices to consider non-financial information about a company, and ultimately prioritizes liberal ideology and goals over investor returns.”
SB 1500 was first passed by the Senate on February 28 with a 16-14 vote after clearing the Government Committee earlier in the month 5-3. When the bill was transmitted to the House of Representatives, it first obtained approval from the Government Committee before receiving the green light from the full chamber with a 31-27 vote (one member not voting and one seat vacant).
Senators Ken Bennett, David Gowan, Sine Kerr, Janae Shamp; and Representatives Michael Carbone, Neal Carter, Tim Dunn, Teresa Martinez, Quang Nguyen, Austin Smith, and Justin Wilmeth co-sponsored the legislation.
Representatives from the Climate Cabinet Action, Sierra Club – Grand Canyon Chapter, and the Arizona Association of Counties expressed opposition to the bill as it made its way through the legislative process.
The governor’s veto continues an abrupt shift in state policy over the ESG issue, which has largely devolved into a Republican versus Democrat fight. Prior to 2023, Arizona had two statewide officials, who were extremely active in fighting back against the ESG movement with former Attorney General Mark Brnovich and Treasurer Kimberly Yee.
However, the transition of power in the Arizona Attorney General’s Office halted Brnovich’s investigative efforts into this movement. Kris Mayes, Arizona’s new top prosecutor, stopped an ongoing investigation from her predecessor, saying, “corporations increasingly realize that investing in sustainability is both good for our country, our environment, and public health and good for their bottom lines. The state of Arizona is not going to stand in the way of corporations’ efforts to move in the right direction.”
But State Treasurer Kimberly Yee continues to be an active opponent of ESG. Her office took several positions and actions against ESG during her first term, including revising the Arizona State Treasurer’s Office Investment Policy Statement to ensure that the Office “investments are not subject to the subjective political whims of the ESG standards.” Yee stated, “This is about maintaining American free-market principles that our country was founded upon and not allowing environmental or social goals to dictate how taxpayer monies are managed.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | Jun 19, 2023 | Economy, News
By Daniel Stefanski |
An Arizona lawmaker is calling out Governor Katie Hobbs for rising gas prices.
On Friday, Senator Jake Hoffman issued a press release, which highlighted “disturbing details…over what Katie Hobbs knew about Arizona’s fuel supply, and the fallout of crippling gas prices from her inaction, after concerns were raised over a major shortage.”
Hoffman’s release originated from reports that a letter had been sent to Hobbs in March by independent petroleum refiner HF Sinclair, warning the state’s chief executive “of a critical supply shortage in Arizona due to an unexpected equipment failure stopping the production of ‘Cleaner Burning Gasoline’ (CBG) required by the Biden Administration in Maricopa County, as well as parts of Pinal and Yavapai Counties.” Hoffman revealed that HF Sinclair had “asked Hobbs to seek a waiver on that requirement from the U.S. Environmental Protection Agency, but the Hobbs Administration denied that request, baselessly claiming the EPA wouldn’t approve it.”
The state senator put Governor Hobbs on blast for this inaction, asserting that her constituents would pay a literal price for this decision: “Katie Hobbs’ incompetence as Arizona’s Governor continues to take center stage, and hardworking Arizonans are paying the price for it. The average price for a gallon of gas right now in Maricopa County is a full $1 higher than the national average. This is extra money that could help with groceries, medications and other necessities many of our taxpayers are having a difficult time affording because of the Biden Administration’s reckless policies leading to historic inflation. Hobbs had an opportunity to do the right thing by requesting this waiver to allow prices at the pump to drop, but she instead chose to selfishly play political games with the livelihoods of our citizens by refusing to back down from her woke ‘green’ agenda to appeal to her far-Left base. Katie, this is not California. In Arizona, we put families first.”
Senator Hoffman’s release shared part of the letter from HF Sinclair, where the refiner argued that Hobbs would be within her right to seek the waiver from the EPA, writing, “Pursuant to 42 U.S.C. § 7545(c)(4)(C)(ii), EPA may temporarily waive a control or prohibition respecting the use of a fuel when extreme and unusual fuel supply circumstances prevent the distribution of an adequate supply to consumers. EPA may grant such a waiver where such circumstances are the result of a natural disaster, Act of God, refinery equipment failure, or another event that could not reasonably have been foreseen or prevented, and where doing so would be in the public interest (e.g., when a waiver is necessary to meet projected temporary shortfalls in fuel supply in a state or region). Such circumstances presently exist in Arizona.”
The Hobbs’ Administration may not have been willing to pursue this waiver to help Arizonans at the gas pumps – something that can’t be said about the Biden Administration, which had another opportunity to lower fuel prices earlier this year. Last month, the EPA issued “an emergency fuel waiver to allow E15 gasoline – gasoline blended with 15% ethanol – to be sold during the summer driving season.” According to the EPA, “the waiver will help protect Americans from fuel supply crises by reducing our reliance on imported fossil fuels, building U.S. energy independence, and supporting American agriculture and manufacturing.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | Jun 17, 2023 | News
By Daniel Stefanski |
An Arizona Republican legislator has renewed his efforts to hold the state’s Democrat chief executive accountable to the rule of law.
On Wednesday, Representative David Livingston filed a complaint and request for investigation with Arizona Attorney General Kris Mayes, regarding Governor Katie Hobbs’ use of state resources to influence elections pursuant to state statutes. This action from Livingston follows an earlier attempt from the legislator to obtain a legal opinion on “whether Arizona law allows a Governor-Elect to fundraise for political entities that make expenditures to influence elections through a state website promoting inaugural events.” In this latest effort, Representative Livingston revealed that Attorney General Mayes had “declined to provide a legal opinion, stating there were factual questions that made the issue inappropriate for a legal opinion.”
Livingston released the following statement in conjunction with his announcement: “State law prohibits using public resources, including websites, to influence elections. As the Attorney General has already acknowledged, there are unanswered factual questions here that warrant an immediate and thorough investigation. If Governor Hobbs had simply transferred the leftover funds to the state protocol account like former Governors have done, it would not be necessary to file my complaint. But the Governor’s unprecedented actions and refusal to provide information to me about where the funds went, who controls the funds, and how the funds will be spent left me with no choice. As the state’s chief legal officer charged with investigating potential violations of Title 16, the Attorney General must scrutinize these transactions and seek judicial relief if necessary to remedy past violations and prevent future violations of state law.”
The state lawmaker argues that the Arizona Attorney General’s Office “is empowered to investigate potential violations of Title 16,” pointing out that “Mayes invoked this authority earlier this year when she filed an unsuccessful lawsuit against Cochise County, citing concerns that without taking legal action, the Cochise County Board of Supervisors might hide actions that should be done publicly in compliance with Arizona’s open meeting law.”
This issue rose to importance earlier this year as Arizona lawmakers received murky and incomplete information about Hobbs’ inaugural fund, which totaled more than $1.5 million in the lead-up to her inauguration at the State Capitol on January 5. After multiple weeks of questions, Hobbs’ campaign manager released the donor list, showing 120 contributors to the fund.
Even with the uncovered donor list, lawmakers wanted more transparency from Hobbs, but they weren’t finding the level of cooperation they sought from her Office. Reports showed that the inauguration cost $207,000, which was a fraction of the funds received from the Hobbs’ Inaugural Fund. With knowledge of how much was raised and spent from the fund, Senate President Warren Petersen and House Speaker Ben Toma sent a letter to the Governor on January 26, asking her to “commit the balance of her $1.3 million inaugural fund proceeds to the state, as past governors have, for the sake of transparency & accountability to the people of Arizona.”
The legislative leaders wrote that “Given….the Inaugural Fund’s own descriptive title, Arizonans would have reasonably anticipated that any excess funds would be used for state interests. In any event, given the public resources that were utilized to solicit funds for the Inaugural Fund and to host the inauguration, it would be inappropriate to utilize any monies in the Inaugural Fund to influence an election.”
The governor’s actions in this matter prompted the introduction of SB 1299, sponsored by Senator Wendy Rogers, which dealt with the governor reporting inauguration expenses. The bill required “the Governor’s Office to publish on its website, within 15 days after the inauguration ceremony, information detailing each organization that organized, supported or funded the ceremony.” The proposal was passed out of both legislative chambers with broad bipartisan support and signed into law by Hobbs.
Representative Livingston’s communication to Attorney General Mayes references this legislation, stating that SB 1299 “is no impediment to your investigation. Because SB 1299 requires all inaugural donations to be deposited directly into the state protocol account, it prohibits future Governors and Governors-Elect from unlawfully using state resources to engage in political fundraising. However, SB 1299 does not have retroactive application and does not remedy past violations of A.R.S. 16-192.”
The legislator ends his referral letter with an exhortation for the state’s top cop to take his complaint seriously, writing, “No one is above the law, including Governor Hobbs.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | Jun 15, 2023 | News
By Daniel Stefanski |
Arizona Governor Katie Hobbs pressed rewind on another agency nomination before facing an embarrassing defeat at the hands of the state senate.
On Monday, the Senate Committee on Director Nominations revealed that Governor Hobbs had withdrawn the nomination of Martin Quezada to be the Director for the Registrar of Contractors (ROC). The governor’s action came after her selection for ROC had been rejected by the Senate Committee, which had been established by President Warren Petersen to vet appointments to head state agencies.
In her letter to Petersen, Governor Hobbs noted that “Director Quezada demonstrated dignity, professionalism, and a deep commitment to public service throughout his tenure leading the Registrar of Contractors.” Hobbs claimed that her nominee “requested that his nomination be withdrawn after the disappointing and inappropriate nomination hearing he endured.”
Senator Jake Hoffman, the chairman of the powerful committee, issued a statement after the governor’s move came to light, highlighting the importance of his panel to ensure that Arizonans are well served by the men and women who lead various agencies. Hoffman said, “Mr. Quezada’s nomination is a prime example of why the Senate Committee on Director Nominations is crucial to ensuring only the most highly qualified candidates will serve as leaders of our critically important state agencies, which impact the safety, health and livelihoods of all Arizona citizens. Through our thorough vetting process, we’ve been able to weed out inappropriate partisan appointments by Katie Hobbs, like Mr. Quezada, while also identifying experienced, accomplished, professional and highly qualified nominees such as Ms. Susan Nicolson for the Department of Real Estate and Mr. Ryan Thornell for the Department of Corrections. Our committee is committed to protecting the public by conducting our due diligence in evaluating these potential state agency leaders.”
According to the Senate’s press release, “concerning information came to light about Mr. Quezada during the May 31st hearing, which led to the recommendation of rejection, including his frequent comments and behaviors supporting antisemitism, racism, and his intolerance for individuals based on skin color, gender, religion and political affiliation.” The announcement also highlighted that Quezada “developed a voting history while serving in the Legislature against small businesses, which is the very community he would have been tasked with serving.”
After the Senate Committee on Director Nominations rejected Quezada’s appointment by the governor, the chamber’s President Pro Tempore, T.J. Shope, indicated that Quezada’s legislative record when it came to small businesses played a significant part in the panel’s decision, saying, “The ROC can ultimately make or break the livelihoods of contractors within our state, so it’s important to choose a leader who supports entrepreneurs in their quest to serve our citizens responsibly and honorably. Unfortunately, during his tenure in the Legislature, Mr. Quezada developed a track record of voting against small businesses 82% of the time, according to data released from NFIB. We can’t in good faith sign off on a director who has a history of voting against the community in which he’s tasked with serving.”
Hobbs now goes back to the drawing board to resubmit a new nomination for ROC to the Arizona Senate for hopeful confirmation.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Daniel Stefanski | Jun 14, 2023 | News
By Daniel Stefanski |
Governor Katie Hobbs and the Republican-led legislature are headed for another showdown.
This week, Arizona Republicans introduced and passed their proposal for a Prop 400 resolution, sending their legislation to the Governor’s Office. According to a press release from the Arizona State Senate Republican Caucus, “The Proposition 400 extension supported by Republican Legislators and outlined in SB 1246 establishes two questions to be placed on the ballot. Question number one covers funding for freeways, arterial roads and the bus program. If voters approve the proposed 0.43% sales tax on question number one, this plan would increase funding for highway projects by $1.47 billion more than the proposal being pushed by Governor Katie Hobbs and the Maricopa Association of Governments (MAG). It would also shift $1 billion from undefined uses like ‘active transportation’ and ‘air quality’ to actual arterial road projects that drivers use every day. If voters approve the proposed 0.065% sales tax on question two, MAG will receive their request for light rail rehabilitation.”
SB 1246, as amended, passed the state house with a 31-26 vote (three members not voting) and the state senate with a 16-12 tally (two members not voting).
Senate President Warren Petersen defended his side’s proposal, saying, “MAG’s proposal is a shell game, where local road project funds are diminished to allow for light rail expansion. Our Prop. 400 extension proposal allows voters to fully evaluate the transportation plan on its merits to determine which funding options best fit their preferred commute patterns. If voters approve question one and reject question two, the valley’s freeways, arterial roads and bus program will be fully funded, and the sales tax will be reduced by 13%.”
House Speaker Ben Toma spoke in support of the legislation before voting Tuesday, stating, “This has been a long time coming, and Maricopa County voters deserve real choices in how their sales taxes continue to get spent. Transparent Prop 400 expansion gives voters that real choice and puts Arizona’s critical infrastructure first. Rather than mixing vague, controversial projects with real improvements to freeways, major roads, and buses, SB 1246 moves over a billion dollars from undefined programs to actual road projects… In short, this transparent extension puts Maricopa County residents first and fulfills our commitment to smart and responsible spending.”
Shortly after the Legislature’s actions on Tuesday, the governor promised a veto on the Republicans’ plan, tweeting, “From day one, I promised I would be laser-focused on growing our economy and bringing high-paying jobs to our state for Arizona workers. Republican leadership’s partisan bill does neither of those things, and will be vetoed when it reaches my desk. Now, it’s time for legislators to vote on a compromise that is supported by a bipartisan majority in both chambers, business and labor leaders, and Maricopa County cities. Republican leadership needs to stop playing partisan games, put the bipartisan compromise up for a vote, and stop holding our state’s economic potential hostage.”
Before the Republicans passed their proposal on Tuesday, Governor Hobbs released a statement to highlight ongoing disagreements over a Prop 400 proposal, writing, “From day one, I promised that I would be laser-focused on growing our economy and bringing high-paying jobs to our state for Arizona workers. That’s exactly what this proposal does, and business leaders, labor leaders, and mayors across Arizona agree. But Republican legislative leadership is holding our economy hostage and holding back our state’s potential to be the leader in new, fast-growing industries.”
Hobbs then encouraged Republican legislators to make a deal with her on this pressing issue, saying, “I’m calling on those legislators to put their partisan politics aside and accept this compromise so that we can keep our economy growing for Arizona families.”
The Governor’s Office included details on the proposed deal, which included the following:
- “Sets allocations at: 40% for freeways, 22% for arterials, and 38% for transit with the elimination of flexibility between the modes
- Sets aside 3.5% for the capital rehabilitation of the existing light rail system
- Includes proposed farebox language to provide statutorily prescribed benchmarks for farebox recovery consistent with our peers
- Road diet language applies to arterial and freeway projects
- Includes definitions for air quality and regional programs”
Arizona House Speaker Ben Toma took issue with the governor’s statement over the weekend, responding to reporters: “The Governor has chosen to be an uncompromising conduit for an inefficient MAG proposal that does not have sufficient votes to succeed in the House. I remain willing to negotiate, but their take-or-leave-it attitude is decidedly unproductive. We are prepared to move a more efficient alternative on Monday and work from there.” That alternative came to fruition on Tuesday.
The Arizona Freedom Caucus also pushed back on the governor’s statement, tweeting, “It’s ironic that Hobbs is pretending that she’s been involved in this issue for more than a few days. Hobbs has said very little about, and done even less, on prop 400 beyond this last week. Unfortunately for the people of Arizona, Hobbs was apparently more focused on firing yet another senior staffer and wasting the last month instead of being at the table on this issue with legislative leaders. Now instead of working with the legislature, Hobbs is choosing to shill for mayors to shove a wildly unpopular light rail boondoggle down everyone’s throats. Hobbs and MAG’s take it or leave it attitude is childish and impedes reaching a real agreement. It serves as yet more evidence that she has no idea how to lead or govern, and isn’t interested in solving complex problems, but rather just wants to play petulant political games.”
The governor has been chasing headlines over Prop 400 negotiations in recent weeks. On May 24, Hobbs used her official Twitter account to share an opinion piece from the Arizona Republic’s Editorial Board, posting, “The @azcentral editorial board is right: Prop 400 is critical to build businesses, create jobs, and secure our booming economic future. Arizona could face real consequences if we fail to pass a bill. It’s time for the Legislature to stop playing games. Maricopa county voters deserve the chance to make their voices heard.”
That tweet from the governor elicited a surprising comment from Arizona Senate President Warren Petersen, who said, “This is a bizarre tweet. We had just started a meeting with the governor about prop 400 while this tweet was sent out. Our plan has more roads, less congestion and is a better value to the taxpayer.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
