Senate GOP Stalls Confirmation of Hobbs’ Insurance and Financial Nominee

Barbara Richardson’s nomination to head the Department of Insurance and Financial Institutions (DIFI) faced rigorous scrutiny during a committee hearing on March 27. The Senate Director Nominations Committee, led by Chair Sen. Jake Hoffman, R-Queen Creek, held a nearly two-hour questioning session focused on her qualifications and previous actions.

Richardson’s nomination marks the first for Governor Katie Hobbs that has encountered significant challenges this session. Last year saw multiple nominees rejected, and Hoffman’s committee directed Richardson to return in two weeks to address public concerns raised during the hearing.

Hoffman criticized Richardson’s previous remarks and her approach to policy-making, suggesting that she might either be misleading the committee or exhibiting poor judgment. He took particular issue with her perspectives on diversity, equity, and inclusion (DEI) matters and her reluctance to release substantive policy statements.

The senator highlighted Richardson’s use of bulletins on the SERFF (System for Electronic Rates and Forms Filing) platform. Hoffman claimed that she preferred to avoid issuing bulletins that could indicate policy changes. In her defense, Richardson clarified that these bulletins are intended solely for clarification of existing statutes, not as indications of new policies.

Questions from committee members also delved into Richardson’s engagement with DEI issues. During the hearing, she stated that while her personal views on DEI might be inconsequential, her regulatory stance is that its application is unnecessary. This assertion did not satisfy Hoffman and other Republicans, who further dissected her involvement with the National Association of Insurance Commissioners on issues intertwining race and climate impact on insurance policies.

Senators Flavio Bravo and Analise Ortiz, the two Democrats on the committee, attempted to question Richardson on these topics before their Republican counterparts could dominate the conversation. Despite disagreements about the questioning’s relevance, Ortiz later expressed support for Richardson, emphasizing her impressive credentials and urging a focus on her regulatory achievements.

Post-hearing, Richardson has been instructed to develop a plan addressing the concerns raised, with a follow-up meeting scheduled for April 10. Her nomination process exemplifies the contentious political climate surrounding Hobbs’ appointments, especially after another nominee for the Department of Housing faced rejection earlier this session.

In contrast, Tom Cole, nominated to lead the Registrar of Contractors, received a recommendation for confirmation but with stipulations regarding his prior connections to labor organizations. Among the candidates confirmed this session are nominees for the Department of Economic Security, the Department of Gaming, the State Lottery, and the Residential Utility Consumer Office.