NEWS

Arizona GOP chairman to Susan Bitter Smith: Consider resigning

Yvonne Wingett Sanchez
The Republic | azcentral.com
Susan Bitter Smith

The chairman of the Arizona Republican Party has asked Corporation Commissioner Susan Bitter Smith to consider resigning her post after the attorney general on Monday moved to seek her ouster.

Arizona Attorney General Mark Brnovich's office filed documents Monday with the Supreme Court, saying Bitter Smith is ineligible to hold office because she is a registered lobbyist and executive director of a trade group of cable communication companies with subsidiaries regulated by the commission, which oversees utilities, telecom companies and other matters.

State law prohibits corporation commissioners from working for or having a financial interest in companies regulated by the commission.

Robert Graham, head of the state GOP party, confirmed to The Arizona Republic that he left Bitter Smith a long voice mail asking her to consider stepping down. He said the two have had numerous discussions about her options over the past couple of months, after allegations involving her potential ineligibility first surfaced. He said Bitter Smith told him that she was committed to the job and that it was not her intent to skirt conflict-of-interest laws.

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"Turn the clock forward today, the discussion has shifted a little bit," Graham said on Monday. "The cost associated with this is not just a financial burden with the legal fees, it's also the impact it's going to have on the commission, the state of Arizona, obviously I'm interested in the party."

He added, "You want what's best for the people of Arizona. Sometimes cutting your losses and moving on are the best for everyone. At this particular point, I can give advice all day long, but when it comes down to it is what she ultimately wants to do."

Bitter Smith's attorney, Ed Novak, returned The Republic's call for comment on her behalf and questioned the motivation of Graham's request.

"I doubt that he’s read the 50-page complaint. I know he hasn’t read our response because we haven’t filed it,” Novak said. "I know Mr. Graham was not involved in our discussion with the Attorney General’s Office, and so I wonder what he bases his request on, because it certainly isn’t the facts."

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In a statement about the controversy earlier in the day, Bitter Smith said she looks forward to having the allegations reviewed by an independent body.

"As I have long said, I am not now nor have I ever been employed by a regulated entity," her statement said. "I am not paid by a regulated entity. I have not lobbied for a regulated entity. There is a policy issue at stake here: how far should conflict of interest rules extend? Should they extend to holdings by your retirement plan; should they apply to investments in your company or state retirement funds; should they apply to anyone who is a customer of a regulated entity; or should they apply to anyone who has received a rebate or discount from a regulated entity? The complaint is broad enough to be read to exclude almost anyone from serving on the Commission or any state office."

The attorney general's petition cites Bitter Smith's work as a lobbyist for Cox Communications and as director of the Southwest Cable Communications Association. Cox and other companies with telecommunications operations are regulated by Bitter Smith and the other four commissioners.

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The initial complaint against Bitter Smith was filed in September by Tom Ryan, a Chandler attorney.

This is the first time the Arizona Republican Party has asked a statewide officer to consider stepping down during Graham's tenure, he said.

Last year, U.S. Rep. Matt Salmon urged former attorney general Tom Horne to end his bid for re-election, saying the controversies enveloping the attorney general were threatening the party's ability to hold onto the office.

Follow the reporter on Twitter: @yvonnewingett and reach her at yvonne.wingett@arizonarepublic.com or 602-444-4712.