The nomination of Barbara Richardson to lead the Department of Insurance and Financial Institutions was held on March 27 after she was subjected to hours of questioning from Republican lawmakers on the Senate Director Nominations Committee.

Richardson is the first of Hobbs’ nominees to be held in committee this session, after several nominees were held and rejected during the 2023 session. The Chair of DINO, Sen. Jake Hoffman, R-Queen Creek, directed Richardson to come back in two weeks to address concerns made by members of the public who testified against her nomination.

“This director nominee from Katie Hobbs appears to either be misleading the committee on her views and activism during her time at DIFI, or is demonstrating a pattern of poor judgment and attempting to legislate from the executive branch,” Hoffman said in a statement released after the hearing. 

The committee questioned Richardson for nearly two hours, with Hoffman primarily asking questions. He expressed concerns about Richardson’s reluctance to adopt substantive policy statements and her involvement in working groups related to climate and DEI issues in the insurance industry. DIFI regulates insurance companies and financial institutions in Arizona. 

Hoffman’s first issue stemmed from Richardson’s use of bulletins within the Systems for Electronic Rates and Forms Filing (SERFF), a website that allows the public to view forms and rules filed by insurance companies with DIFI. Richardson allegedly told insurance stakeholders that she does not like to issue bulletins on SERFF regarding agency policies, which Hoffman took to mean Richardson avoids issuing substantive policy statements in order to circumvent statutory reviews.

She denied that characterization of her usage of the site and said bulletins posted there are meant to provide clarification and warnings to insurance companies regarding existing statutes, not to indicate a change in department policy. 

Hoffman and other Republican lawmakers on the committee also questioned Richardson extensively on diversity, equity and inclusion and her involvement in committees exploring those topics. Sens. T.J. Shope, R-Coolidge, and John Kavanagh, R-Fountain Hills, also asked about Richardson’s work with the National Association of Insurance Commissioners on issues like race in insurance and climate impacts on insurance policies. 

Richardson told lawmakers that her personal views on DEI policies are “not important,” but she said “my view in how it’s used in the regulatory world is — it’s not necessary.”

Hobbs’ office declined to comment on Richardson’s nomination being held. Richardson did not immediately respond to a request for comment.

The two Democrats on the committee, Sen. Flavio Bravo, D-Phoenix, and Sen. Analise Ortiz, D-Phoenix, attempted to give Richardson a chance to get ahead of those topics by asking about them before Republicans were able to. 

“I think you had some blockers and tacklers here on the wings with some of these issues,” Hoffman told Richardson, gesturing to where Bravo and Ortiz were seated on the committee dais. 

Hoffman also insinuated that one of the committees Richardson served on related to race in insurance was disbanded on Wednesday to help further her nomination. Richardson said the disbandment had nothing to do with her and was due to the work being completed.

“Seems quite convenient for you,” Hoffman said. “I’m sure there was a call put in on your behalf.”

Ortiz also attempted to get Hoffman to end his line of questioning related to DEI, saying Richardson had already answered questions related to her role on those committees and calling continued questioning “dilatory.” Hoffman denied that characterization and kept on with his questions.

In a statement sent via text to the Arizona Capitol Times, Ortiz said she believes Richardson “deserved an affirmative vote” but is glad she will have another opportunity to come before the committee.

“Her resume is exemplary and it is clear she is respected nationwide for her expertise in insurance regulation,” Ortiz said. “I hope my colleagues will not be distracted by the unfortunate partisan, personal attacks we saw today and focus on the results she’s delivered for Arizonans in her more than two years leading DIFI.”

Hoffman told Richardson to take two weeks to review concerns raised by lawmakers and come back with “a framework for how you surmount those concerns.” He said Richardson should expect to come back before the committee on April 10.

Richardson is not the only nominee to face difficulties this session. Hobbs’ nominee for the Department of Housing was rejected by the full Senate in February, though has stayed on at the department as deputy director.

Tom Cole, the nominee to lead the Registrar of Contractors, also went before DINO on Thursday and was recommended for confirmation to the full Senate, but Hoffman has said he will not support Cole’s confirmation without stipulations. The senator said Cole must withdraw from a memorandum of understanding with the U.S. Department of Labor to assuage concerns that he is not “free from influence and bias favoring labor unions.”

Four other Hobbs nominees have been confirmed this session, including nominees for the Department of Economic Security, the Department of Gaming, the State Lottery and the Residential Utility Consumer Office.