Hobbs illegally circumvented state agency nominee process, judge rules

Gov. Katie Hobbs violated state law when she appointed 13 de facto state agency heads in order to sidestep the Senate confirmation process , a Maricopa County Superior Court judge ruled Wednesday.

Why it matters: The development could spark a new round of fighting and political gamesmanship as the Democratic governor tries to get her agency heads past a Republican-controlled Senate.

• And it creates an uncertain future regarding the leadership of agencies that oversee state programs like unemployment, housing assistance and Medicaid.

The big picture: The ruling is a blow to the governor, who attempted to circumvent the traditional cabinet approval process, which she said Senate Republicans turned into a "political circus."

Catch up quick: Hobbs last year withdrew 13 unconfirmed cabinet nominees from Senate consideration, instead naming them "executive deputy directors," and instructing them to serve as the heads of their agencies.

• The withdrawals came after Senate President Warren Petersen took the unusual step of creating a special vetting committee, which dragged out the confirmation process and subjected some nominees to intense scrutiny.
• The committee rejected three of Hobbs' nominees, including Joan Serviss, who Hobbs went on to appoint as the Arizona Department of Housing executive deputy director.
• Petersen sued after Hobbs withdrew her nominees.

Driving the news: Maricopa County Superior Court Judge Scott Blaney ruled Wednesday that "the governor has improperly, unilaterally appointed de facto directors for these 13 agencies, despite the actual job title she has assigned to them."

• He noted that state law does not allow the governor to leave director positions vacant and requires nominees to go through the formal confirmation process.

Yes, but: Blaney didn't order Hobbs to submit her agency heads for confirmation, as the Senate wanted.

• He wrote that he'll schedule a hearing later this summer to allow the Hobbs administration and Senate leadership "to reach a mutually agreeable solution of this dispute."
• Senate GOP spokesperson Kim Quintero told Axios, "We view this … as giving the governor's office time to do the right thing" by resuming the standard vetting process.

What they're saying: "Contrary to what she may believe, [Hobbs] is not above the law, and the Legislature is fulfilling its role in serving as the constitutional check and balance against her abuse of power," Petersen said in a press release.

The other side: "We believe the ruling is wrong on the law and will be appealing it. While the case remains pending, we will continue to ensure state agencies can perform their vital functions and serve Arizonans," Hobbs' spokesperson, Christian Slater, said in a statement to Axios.