On Tuesday, the Arizona Supreme Court refused to consider a petition filed by Arizona Attorney General Mark Brnovich to remove Corporation Commissioner Susan Bitter Smith over conflict of interest allegations. Brnovich had asked the Court to dismiss his petition because Bitter Smith was essentially forced to resig.
Bitter Smith wanted the case to be heard.
“We wouldn’t have moved forward with this case if we didn’t believe Susan Bitter Smith had a clear conflict of interest. After Bitter Smith’s resignation, we asked the Arizona Supreme Court to dismiss the Petition for Special Action because the conflict no longer existed. We are pleased the court agreed and ruled the petition against Bitter Smith is moot,” said Brnovich in a statement released Tuesday. “I remain committed to investigating all allegations of conflicts of interest and public corruption. I’d like to thank our excellent team at the Attorney General’s Office including Assistant Attorneys General Beau Roysden and Evan Daniels for their hard work on the case.”
In November, Brnovich filed a Petition for Special Action to remove Bitter Smith from office. The Attorney General’s Office alleged Bitter Smith is ineligible to hold office because of her conflict of interest as a registered lobbyist and executive for a trade association of cable companies regulated by the Arizona Corporation Commission.
On September 2, 2015, the Attorney General’s Office (“AGO”) launched an investigation into Bitter Smith after receiving a formal complaint against her. The AGO investigation found Bitter Smith receives over $150,000 per year for her trade association work, on top of her $79,500 salary as a Commissioner. Arizona State Statute 40-101 prohibits Commissioners from being employed by or holding an official relationship to companies regulated by the Commission. The law also prohibits Commissioners from having a financial interest in regulated companies. Section 40-101 promotes ethics in government and prevents conflicts of interest.
Bitter Smith is the executive director and designated lobbyist for the Southwest Cable Communications Association, a trade association for cable companies in Arizona, New Mexico, and Nevada. She is also registered as a lobbyist for two affiliates of Cox Communications. The other members of the trade association regulated by the Commission are affiliates of Comcast, Suddenlink, and Time Warner. Bitter Smith’s salary constitutes 40-percent of SWCCA’s budget. She works as a “CEO” over all of SWCCA’s operational aspects and as its designated and only lobbyist.
The Commission regulates many public utilities in Arizona, including local telephone providers. Because cable companies or their affiliates offer telephone service, often as part of a “bundle” with television and Internet, they are regulated by the Commission.