Arizona Gov. Katie Hobbs, Attorney General Kris Mayes disagree about tax dollars used to lure business to Arizona

PHOENIX (3TV/CBS 5) – Arizona Gov. Katie Hobbs and Attorney General Kris Mayes are at odds over using tax dollars to wine and dine wealthy business executives. Mayes calls it unconstitutional and should be stopped. Hobbs disagrees.

Big events like the Waste Management Phoenix Open and the upcoming Final Four basketball tournament bring a lot of out-of-state business executives to the Valley. But the Arizona Attorney General said this week that the Arizona Commerce Authority cannot use tax dollars to lavish them parties and tickets to high profile events. Mayes said the type of CEO forums hosted by the ACA during high-profile events like the Super Bowl violate the state Gift Clause and are unconstitutional. She wants to ACA to stop throwing lavish forums for CEOs and other business executives with tax dollars and is giving the ACA seven days to confirm they will comply.

“This was an expenditure of money that essentially went to out-of-state CEOs for Super Bowl tickets, hotel rooms, lavish dinners, and meals,” Mayes told Arizona’s Family. Gov. Hobbs finds herself at odds with the Attorney General’s opinion. The governor told reporters, “We disagree with the findings, and we’re looking at our options.”

A state auditor general report released in the fall said the ACA spent over $2 million dollars during the Super Bowl to lure CEOs. Mayes claims it will spend another $1 million this year on the Final Four and the Waste Management Phoenix Open. Members of the business community say the practice is an important tool for economic growth and development because these events bring companies and jobs to Arizona.

The commerce authority declined an on-camera interview and issued a statement, like the governor, saying they disagree with the AG. “We are reviewing the AG’s opinion and will continue to work with legal counsel to consider next steps.”

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