2 of Hobbs' picks to head Arizona agencies face dismissal by GOP lawmakers over social issues

The governor’s picks to lead two of Arizona’s agencies are in hot water after grilling by a Republican-led committee.

Sen. Jake Hoffman (R-Queen Creek) leads a Senate committee on director nominations, known as DINO, tasked with vetting Democratic Gov. Katie Hobbs’ prospective agency heads.

On Thursday, he questioned interim Department of Insurance Director Barbara Richardson about her participation on a diversity, equity and inclusion-related committee.

“Clearly there are concerns with, I think, judgment in terms of participation on some of those committees that we talked about and the message that that sends to the regulated industry,” Hoffman said.

One of Richardson’s staff members sits on a task force under the National Association of Insurance Commissioners, Climate and Resilience. Hoffman questioned whether the committee’s goals on things like mitigating climate risk are really pro-business.

He argued that a staff members’ presence on that task force could have a chilling effect on the insurance industry.

Hoffman also questioned whether Richardson’s agency is following proper protocols by communicating policy-related information without going through the Governor’s Regulatory Review Council, which must approve policy changes. But Richardson said that’s not what the communications were and she does not avoid GRRC.

The National Association of Insurance Commissioners also has a Special (EX) Committee on Race and Insurance. According to a mission statement posted on the committee’s website, the committee is meant to identify issues related to race, diversity and inclusion in the insurance sector. As well as practices that could disadvantage certain groups.

In a statement, Hoffman called the committee a discriminatory DEI program promoting radical leftist ideology.

"In Arizona, we have zero tolerance for discrimination in state government. Qualified candidates should be free from any partisan political agendas. Involvement with NAIC's racist DEI initiatives does not reflect that. We also expect directors to follow statutes, not find creative ways to evade them,” he said.

Hoffman also grilled Thomas Cole — Hobbs’ pick to lead the Registrar of Contractors — for his lack of experience in the construction sector and his previous involvement in a firefighters union.

Hoffman questioned whether he can really be impartial about decision-making and not favor unions.

“[Cole] refused to acknowledge how his strong ties to labor unions could influence his decision-making,” Hoffman wrote in a statement.

Cole did pledge not to unfairly favor unions.

Under the Biden administration, Cole signed a memorandum of understanding with the U.S. Department of Labor. Hoffman stated his concern that the MOU could mean that federal labor policies will affect Arizona contract regulations under Cole’s leadership. Unless Cole withdraws from the MOU, Hoffman stated he won’t support his confirmation.

Richardson was held from a recommendation vote. Cole passed the committee, but Hoffman doesn't want him to be voted on by the full Senate yet.

Hoffman said he’ll schedule another committee hearing for Richardson in two weeks.

That’s a departure from how the DINO hearings have been going this year. Until now, everyone passed out of the committee with a positive recommendation.

Things usually get dicey over social issues like abortion and climate change, or in this case — unions and DEI.

Hoffman is a staunch opponent of Hobbs and as the leader of the far-right legislative Freedom Caucus has stated that his goal this session is to elect someone else as governor.

EDITOR'S NOTE: This story has been updated to correct Thomas Cole's status with the committee.