Legislature Fails To Fix Troubled Arizona Commerce Authority

Legislature Fails To Fix Troubled Arizona Commerce Authority

By the Arizona Free Enterprise Club |

After months of debate surrounding the controversial reauthorization of the Arizona Commerce Authority (ACA), the tension finally broke on the last day of session when HB2210 was raced through the House and Senate and signed by Governor Hobbs.

Everyone at the capitol was aware of the problems surrounding the Commerce Authority. Our elected officials were briefed on the innumerable deficiencies, questionable activities, and likely illegal behavior of the agency. Yet when it came time to act, the legislature capitulated to the special interest benefactors of the agency, passing a reauthorization with no real reforms. The included changes were so inconsequential that an agency dealing with months of negative press about illegal CEO junkets had nothing but accolades for legislative leadership.

What did the final ACA package look like? In exchange for a five-year reauthorization (one of the longest reauthorizations ever granted to the ACA), the agency agreed to add to their board an attorney practiced in litigating Gift Clause violations, a requirement that their board meetings be videoed and hosted online for public review, a cap of “only” 100 state-paid full-time employees, and some reporting requirements for permitting and approval times by local cities and towns.

So, what started out as a hopeful and robust opportunity for reform quickly disintegrated into window dressing changes…

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Reforming The Arizona Commerce Authority: Lawmakers Should Resolve Constitutionality Problems First

Reforming The Arizona Commerce Authority: Lawmakers Should Resolve Constitutionality Problems First

By the Arizona Free Enterprise Club |

There are plenty of problems with the Arizona Commerce Authority. Since its inception in 2011, criticisms were raised concerning its freewheeling powers to dole out taxpayer money with practically no legislative oversight and broad exemptions from important guardrails such as the prohibition of using outside counsel (rather than the Attorney General’s office.) These issues have resurfaced over the years in critical Auditor General reports that have highlighted the insufficient reporting and record keeping for the administration of grants and awards provided by the agency to private businesses. This led to a mere 2-year extension of the agency in 2016, and a controversial reauthorization in 2018 when Republicans and Democrats alike banged the table for reforms. And most recently, the agency has come under fire by the Attorney General herself, for unconstitutional gifts in the way of wining and dining and Super Bowl tickets for CEOs.

Despite consistent criticism across the aisle and over the years, the ACA has evaded any real substantial reforms. That could very well change this year.

There now seems to be bipartisan interest in reining in an unaccountable agency with a $226M budget and a multi-million-dollar slush fund…

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