Arizona Tourism Chief Steps Down Amid Controversy Over Conflict of Interest

Lisa Urias, appointed by Governor Katie Hobbs to lead the Arizona Office of Tourism, resigned on Friday amid controversy. Her decision followed reports that revealed a connection involving her communications agency, which procured a contract for the state’s new logo.

Arizona Superintendent of Public Instruction Tom Horne contested the figures reported regarding Urias’ agency, stating on X, formerly Twitter, that the Arizona Department of Education had contracted Urias for $15,000 on a one-year agreement and had no intention of extending it.

The Arizona Agenda reported that graphic designer Kevin Coochwytewa, hired to assist with the logo, received $27,500 for his work. Coochwytewa’s brother, Jason, is the CEO of Urias Communications, which raised questions about the legitimacy of the contract awarded to Urias’ firm.

According to the same report, the logo redesign, funded by federal pandemic dollars, amounted to approximately $700,000, which covered multiple listening sessions conducted statewide. Urias stated that the funds contributed not only to the logo but also to a wider initiative to refresh Arizona’s brand and produce supporting materials.

Urias’ tenure in the role began in January 2023, with her officially commencing work in the agency by March of the same year. Past contracts of the Urias Communications firm included a $250,000, five-year deal with the Arizona Department of Education for managing events related to the Office of Indian Education.

In her resignation letter, Urias firmly denied any improper financial gain stemming from her role as tourism director. She clarified that although she recommended Kevin Coochwytewa for the logo project, Heart & Soul Agency determined who would be chosen for the work.

Following these revelations, some Republican legislators criticized Hobbs for perceived corruption associated with her appointee. State Senator Jake Hoffman condemned the situation, alleging misuse of office by Hobbs.

Hoffman mistakenly claimed in his posts that Urias’ brother was responsible for the logo’s design. As a notable figure within the Arizona Freedom Caucus, he has been a prominent opponent of Hobbs and previously led Senate committees that delayed the approval of her appointees.

In response to mounting pressure and scrutiny, Hobbs opted to modify her strategy for appointing officials, bypassing Senate confirmation. This decision came after a judge sided with Senate Republicans, affirming that the Governor had overstepped legal boundaries during the appointment process.

Urias expressed her concerns about the potential reputational harm caused by unverified allegations. In her resignation letter, she noted, “Despite the extensive effort and care devoted to rebranding Arizona… it became evident that these false allegations would obstruct my confirmation by the Senate Confirmation Committee.”

Her official departure from the Office of Tourism is slated for December 4. Concurrently, State Rep. Teresa Martinez called for an investigation into what she described as “potential conflicts of interest” associated with Hobbs’ appointment.

Martinez contended that Hobbs had already violated the law by appointing Urias, thus weakening the essential checks and balances necessary to uphold the integrity of state governance.