Bedford Lawmaker Faces Conflict Of Interest Questions

BEDFORD, NH — State Rep. Bart Fromuth, a Republican from Bedford, indicated on his financial disclosure form that he runs three energy companies regulated by the state Public Utilities Commission. And yet, he has sponsored a pair of bills to repeal the state's renewable portfolio standard. The standard affects some of his clients and would force electricity providers to obtain a quarter of their power from renewable energy within seven years.

Providers who fail to reach the threshold would have to buy renewable energy credits or face a fine.

Fromuth noted the conflict of interest in submitted documents, but indicated he still planned to participate in the debate. He said his company Freedom Energy Logistics also sells energy credits so repealing the standard would, if anything, hurt him financially.

One bill died in the House. But the other was changed to establish new reporting requirements for the credits and has been returned to committee for further scrutiny.

Fromuth acknowledged "we're never going to repeal the RPS" and said his primary objective was to shine a light on the fact that money generated by the renewable portfolio standard was used to plug holes in the state budget rather than in subsidizing renewable energy projects.

The Center for Public Integrity and The Associated Press analyzed financial disclosure reports from 6,933 state legislators around the country and found that three out of four lawmakers had income from other employment.

While outside jobs give lawmakers expertise in certain policy areas, it also provides an opening for potential conflicts of interest. Lawmakers' businesses and the industries they work in can be directly affected by the actions of the legislatures. The reporting unearthed numerous examples of state lawmakers who have introduced and supported legislation that directly or indirectly helps their own businesses, their employers or their personal finances.

Even then, their actions do not necessarily represent a conflict of interest as defined by state legislatures. Legislatures set their own rules about what constitutes a conflict and at what point lawmakers should recuse themselves from a vote.

In a similar case, former Republican state Rep. Joe Lachance, of Manchester, indicated he owned a cannabis consulting business on his disclosure form, and yet, Lachance sponsored multiple bills that sought to change the state's marijuana law to cover more conditions. Lachance said he never actually opened the business though, but rather simply registered the name.

Lachance, who failed to win re-election last year, said he was trying to help fellow disabled veterans. He said he became hooked on opioids to treat chronic pain and faulted the veterans affairs medical system.

Unlike many other elected officials, legislators across the country often hold other jobs and run businesses when legislatures are not in session. The AP and Center for Public Integrity review found that at least 76 percent of state lawmakers holding office in 2015 had outside jobs.

That's different than in Congress, where moonlighting by members has been sharply restricted since 1978.

Only three states — Michigan, Idaho and Vermont — have not required such reports. In June, though, Vermont announced that it will begin requiring them in 2018.

Out of the 47 states that require personal financial disclosures, the completed forms are available online in 31 states. In the remaining 16 states, those who want to view the reports might need to email a clerk or take more complicated steps such as showing their photo IDs or requesting the documents in person.

The Center for Public Integrity has made it easier by putting disclosures from a total of 6,933 lawmakers in 47 states who held office in 2015 into a searchable digital library.

Some states ask lawmakers to detail the jobs of their spouses or children, their businesses, investments, real estate holdings or even ties to lobbyists. Others ask for little beyond the legislators' sources of income.

New Hampshire's form contains just two sections: a checklist to declare if lawmakers believe they have a conflict in certain areas; and a space to declare sources of income over $10,000.

In every state except Oregon and Utah, legislators can abstain or ask to be recused from voting on legislation. Most states specify that they should do so if the legislation presents a conflict of interest.

But many lawmakers are still allowed to debate, and sometimes even vote, on legislation and amendments that might benefit them or their companies.

Oregon and Utah require lawmakers to vote if they are present, regardless of any potential conflicts of interest. Many legislators say frequent abstentions would keep their chambers from working properly.

By DAVID JORDAN, Center for Public Integrity

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