AZ Gov Hobbs Under Fire for $700K Logo Expense

Arizona State Representative and Majority Whip Teresa Martinez (R-16) is requesting that AZ Attorney General Mayes (D) and Maricopa County Attorney Rachel Mitchell (R) undertake an official probe into potential ethical violations by Arizona Governor Katie Hobbs (D) over the development of Arizona’s new state tourism logo. The branding initiative, spearheaded by the Arizona Office of Tourism, cost the state $700,000 paid from federal pandemic relief funds. However, state legislators question the connections between the project and individuals linked to Tourism Director Lisa Urias.

The controversy centers on hiring Kevin Coochwytewa, a Hopi designer and brother of Jason Coochwytewa, CEO of Urias Communications—a marketing firm founded by Lisa Urias. While Urias no longer manages day-to-day operations at the firm, records reveal that she suggested hiring Kevin for the project. The Governor awarded the logo contract to Heart & Soul Marketing, which collaborated with Kevin Coochwytewa for the design work.

Critics, including State Senator John Kavanagh (R-LD3), expressed concern. “It’s clearly an ethical violation. Whether or not it’s a legal violation is another issue,” Kavanagh stated to the Arizona Agenda, which first broke the story.

Senator Jake Hoffman (R-LD15) posted his concern on X and later appeared on the Garret Lewis radio show, Afternoon Addiction. Hoffman stated, “This is just the latest scandal in a scandal-plagued Hobbs administration.” Hoffman added on X, “Katie Hobbs continues to exploit her office, break the law, and take advantage of the people of Arizona.”

DON’T MISS OUT ON THE POLL

Give your opinion on @KatieHobbs’ $700,000 logo 👇🏼👇🏼👇🏼https://t.co/W6jRWJ2T7i pic.twitter.com/mjCNDJxWvg

— Jake Hoffman (@JakeHoffmanAZ) November 21, 2024

The logo award is not the first instance in which Urias Communications benefited from state contracts. More than a year after Urias became the tourism director, her agency secured a $250,000, five-year non-competitive contract with the Arizona Department of Education. This contract, designed for managing events for the Office of Indian Education, bypassed the typical bidding process, raising further concerns about conflicts of interest.

Another Hoffman post on X prompted some heat with Public Instruction Superintendent Tom Horne (R). He wrote, “Now why would the Republican Superintendent of Public Instruction, Tom Horne, be hiring an illegally installed Katie Hobbs’ fake director’s brother as his quarter million dollar, NO BID, marketing vendor?” After a testy exchange on X between Hoffman and Horne, Hoffman added, “Yikes. Seems like he needs a primary in 2026” (see the complete back and forth here).

Senator, we paid $15K on an expiring 1-year contract with Urias. ADE does not, nor will it, have a $250K contract with Urias. Get your facts straight.

— SPI Tom Horne (@RealTomHorne) November 21, 2024

On Lewis’s show, Hoffman stated, “This will probably lead to Hobbs having to withdraw yet another nominee. This will be the fourth or fifth nominee that she has had to withdraw because she hires people doing the wrong thing and are corrupt.”

The day after the scandal broke, Lisa Uriah announced that she was resigning as director effective December 4th.

Other Legal Challenges Facing Governor Hobbs

Hobbs is still under investigation for allegations of a potential “pay-for-play” scheme involving Sunshine Residential Homes, a contractor providing group homes for foster children (see Arizona Globe’s prior coverage here). Sunshine Residential made substantial donations, totaling nearly $400,000, to Hobbs’ inauguration fund and the Arizona Democratic Party. Around the same time, the company received an almost 60% rate increase from the Arizona Department of Child Safety—the only company to be granted a rate hike approval during Hobbs’ tenure.

Mayes and Mitchell have each indicated they are reviewing the matter, with Mayes formally opening an investigation. Hobbs’ office has denied any wrongdoing, attributing the allegations to partisan attacks, while critics argue the situation reflects deeper concerns about ethical governance.

In another case reported on by the Arizona Globe, Maricopa County Superior Court Judge Scott Blaney ruled that Hobbs violated Arizona law by circumventing the State Senate’s confirmation process for agency directors. Facing challenges securing Senate approval for her nominees, Hobbs appointed deputy directors as de facto agency heads, bypassing legislative oversight. Judge Blaney stated that Hobbs had “improperly, unilaterally appointed de facto directors for these 13 agencies, despite the actual job title she has assigned to each of them.” He emphasized that the Governor’s frustration with the Senate did not justify sidestepping statutory requirements, noting, “The Governor’s frustration with a co-equal branch of government—even if that frustration was justified—did not exempt her director nominees from Senate oversight.”

It’s unclear whether Mayes’ investigation will result in significant action against the Governor or if  Mitchell will join Mayes’ case or initiate one independently. In the meantime, pressure mounts for a meaningful opposition to Hobbs’ re-election, both from Republicans in the 2026 general and for a Democrat primary challenger.