Arizona tourism director resigns after questions raised about handling of state contract

Governor Hobbs says 'appearance of conflict is not acceptable' as she accepts Lisa Urias' resignation. Urias rejects allegations as 'false.'

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PHOENIX — Arizona Gov. Katie Hobbs accepted the resignation Friday of state Tourism Director Lisa Urias, a Hobbs appointee, after a news report raised questions about Urias' handling of a state contract. "As a social worker, I take my role as a public servant very seriously," Hobbs told reporters at a Capitol event.

"Anyone who has the privilege of serving the public needs to be above reproach. That's why I accepted her resignation this morning. This appearance of conflict is not acceptable.



" Hobbs' response came after a report Thursday in the Arizona Agenda that Urias had played a role in steering a $27,500 contract for a state logo makeover to a person with connections to her marketing agency, Urias Communications. RELATED: Here's what went into creating Arizona's new logo In her resignation letter, Urias labeled the allegations as "unfounded" and "false." "Unfortunately, this past week, I was caught in a maelstrom of unfounded and false allegations regarding the financial management of this project," Urias said.

"Accusations were made suggesting that I personally benefitted financially from my role as Tourism Director and that my agency, Urias Communications, profited from this work. Let me be unequivocal: neither Urias Communications nor I have ever received any financial benefit from this project or any other work related to the Arizona Office of Tourism." Urias' resignation is effective Dec.

4. Republican Senate President Senate Warren Petersen had called on Urias to quit, warning that the Senate would never confirm her nomination. On Thursday, Arizona House of Representatives Majority Whip Teresa Martinez sent a letter to Attorney General Kris Mayes and Maricopa County Attorney Rachel Mitchell calling for an investigation into the contract.

In the letter, Martinez wrote "These reported facts, if true, raise significant questions that must be immediately investigated. Arizona's conflict of interest laws are designed to prevent waste, fraud and self-dealing by public officials." Watch 12News for free You can now watch 12News content anytime, anywhere thanks to the 12+ app! The free 12+ app from 12News lets users stream live events — including daily newscasts like "Today in AZ" and "12 News" and our daily lifestyle program, "Arizona Midday"—on Roku, Apple TV and Amazon Fire TV .

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