Arizona Tourism Chief Steps Down Following Conflict of Interest Scandal

Lisa Urias has resigned from her role as head of the Arizona Office of Tourism, a position she held since March 2023. The resignation follows a report highlighting a conflict of interest involving her communications agency and the state’s branding efforts.

Urias’ communications firm, Urias Communications, reportedly received a multi-year contract from the Arizona Department of Education, leading to scrutiny over potential favoritism. Superintendent Tom Horne contested the contract value, stating the department paid only $15,000 for a single year, with no plans for further engagement.

The controversy intensified after the Arizona Agenda revealed that graphic designer Kevin Coochwytewa was compensated $27,500 for assisting in the state’s logo redesign. Coochwytewa is the brother of Jason Coochwytewa, CEO of Urias Communications, raising questions about the agency’s connection to the project.

According to reports, the total expenditure for the logo redesign was approximately $700,000, funded by federal pandemic relief money. This cost included extensive public engagement, with around 60 listening sessions conducted statewide. In her resignation letter, Urias clarified that the funds not only went towards the logo but also encompassed broader branding initiatives for Arizona.

Before her resignation, Urias vehemently denied accusations that her company benefited from her official role. She stated that Heart & Soul Agency, which was selected for the rebranding project, independently chose Coochwytewa for the logo design, despite her recommendation.

Political backlash ensued immediately following the Arizona Agenda’s report, with Republican legislators criticizing Governor Katie Hobbs for her appointment of Urias. Senator Jake Hoffman described the situation as an example of corruption under Hobbs’ administration, though he inaccurately claimed a familial link between Urias and the designer.

Hoffman has been a vocal opponent of Hobbs, serving in leadership roles that include overseeing contentious confirmation hearings for the governor’s nominees. Following a stalemate in the Senate over these appointments, Hobbs resorted to appointing her nominees as executive deputy directors to bypass the Senate approval requirement.

In her resignation letter, Urias noted the challenges posed by politically charged allegations, expressing concern over the impact on her confirmation process. Her official departure from the Office of Tourism is set for December 4.

The controversy has prompted calls for an investigation. State Representative Teresa Martinez urged both the Democratic and Republican attorneys general to examine the matters at hand, citing potential conflicts of interest arising from Urias’ appointment.