Governor’s Regulatory Review Council Faces Backlash Over Water Rulemaking at Controversial Sunset Hearing

A Republican legislator has raised concerns regarding the Governor’s Regulatory Review Council (GRRC), alleging it is not fulfilling its legal obligations to assess agency rulemakings for compliance and legislative intent. These claims follow a Senate Government Committee hearing on March 26 where Senator Jake Hoffman, R-Queen Creek, scrutinized GRRC Chair Jessica Klein for nearly an hour about their procedures.

The hearing was intended to review a sunset audit conducted by the Auditor General’s Office, but the focus shifted to specific rulemaking from the Department of Water Resources. Hoffman conveyed concerns about influences from the Governor’s Office and the Arizona Department of Water Resources (ADWR), suggesting they pressured GRRC to expedite the rulemaking process for the Alternative Path to Assured Water Supply rules, commonly referred to as ADAWS. This rulemaking is embroiled in multiple lawsuits initiated by legislative and Republican-aligned factions.

While GRRC approved the ADAWS rules in late 2024, Hoffman accused the council of hastening the review process. He claimed this rush violated regulations regarding public comment periods, and criticized the scheduling of votes during study sessions when key members were absent. “We feel strongly that you violated the law. We will be vindicated, and that rule will be thrown out,” he stated emphatically, urging the council to improve its compliance efforts.

In response, Klein strongly denied Hoffman’s allegations, expressing frustration at his relentless questioning. She emphasized that her testimony was meant to address an auditor general report not associated with the ADAWS rulemaking. “I’m a simple council member who follows the statutes as they’re written,” she remarked, countering Hoffman’s implications regarding her role within the Department of Administration.

Christian Slater, a spokesperson for Governor Hobbs, dismissed Hoffman’s criticisms as unfounded. He stated, “Jake Hoffman has no idea what he’s talking about,” defending GRRC’s handling of the ADAWS process, which included three hearings rather than the standard two. Slater characterized Hoffman’s assertions as desperate attempts to undermine legitimate policies.

Democratic Senator Lauren Kuby of Tempe expressed dismay over Hoffman’s interrogation style, commending Klein for her poise during the proceedings. Kuby highlighted that the majority of the GRRC board was appointed under former Governor Doug Ducey, countering Hoffman’s assertions that recent issues arose under the current administration.

The GRRC is scheduled to be dissolved in July unless renewed by the Legislature. In light of the recent disputes regarding ADAWS, House Bill 2594 proposes significant changes to the council’s structure. This bill would prevent GRRC from voting on rules during study sessions and include balanced public comment opportunities. Additionally, it seeks to alter council appointments, transferring some from the governor to legislative oversight.

Klein acknowledged that staff advised GRRC regarding procedural norms, asserting that the council took steps to ensure ample public engagement during the ADAWS discussions. In a notable shift, the bill seeks to replace Klein as chair, mandating the director or deputy director of ADOA to assume that role instead.

The Senate Government Committee advanced House Bill 2594 in a 4-3 vote along party lines, with Hoffman signaling his intent to delay further progress until obtaining additional information about GRRC’s voting practices during study sessions.