Arizona tourism chief resigns after contract raises questions

(Center Square) — Lisa Urias will step down as head of Arizona’s tourism office, the governor’s office told The Center Square Friday morning.

“This appearance of conflict is not acceptable,” Gov. Katie Hobbs said Friday at a press availability.

Her resignation follows an Arizona agenda reportwho revealed that Urias Communications, played a role in the state’s logo redesign effort. Specifically, CEO Jason Coochwytewa’s brother received $27,500 to create the artwork. The tourism department said she does not play a day-to-day role in how the communications firm operates, according to ABC 15 Arizona.

The contract has raised questions among Republican lawmakers, including Rep. Teresa Martinez, who has called for Attorney General Kris Mayes and Maricopa County District Attorney Rachel Mitchell to handle it.

“These reported facts, if true, raise significant questions about potential violations of Arizona’s conflict of interest laws,” Martinez said in a letter. “All government officials must act responsibly, ethically and transparently.”

Hobbs said she “doesn’t want to speculate” on a potential investigation when asked if she would support one.

The Arizona Department of Education also says there was no $250,000 contract with Urias Communications, but $15,225 was spent with the firm for “meeting planning services,” according to a news release.

“The document that attracted attention is not a contract at all, but an impractical competition document that was never approved,” the department said in the statement. “ADE spent $15,225 with Urias for meeting planning services, but there was not and will not be a $250,000 contract or expense. No previous administration has engaged in such a contract.”

Urias strongly denies the allegations presented in the Arizona Agenda report.

“In light of the fact that Senate Confirmation members have made it clear they will not confirm me as tourism director — despite recent untrue and unsubstantiated claims — I have tendered my resignation to the governor,” Urias said in a statement.