Today, Susan Bitter Smith announced her resignation from the Arizona Corporation Commission, effective January 4. The move was inevitable after Attorney General Mark Brnovich filed a Petition for Special Action to remove Bitter Smith from office. T
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.
Bitter Smith’s attorney filed a response to Brnovich’s action, on Wednesday. In the filing, Bitter Smith claimed she has no conflict of interest. In a press conference on Thursday, Bitter Smith claimed she still wants to fight the case to be heard by the court.
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.
Governor Doug Ducey will have to appoint Bitter Smith’s replacement. Many believe that he will likely choose someone from southern Arizona. Four names have emerged as possible choices: former Senator Al Melvin, who is currently running for the spot, popular Republican Party leader Sergio Arellano, Rio Nuevo lobbyist Jonathan Paton, and State Representative Vince Leach.