Chandler may face ethics probe, rival says

House Speaker Gene Chandler, R-Bartlett, faces more scrutiny for money he raised at annual corn roast fund-raisers, including a possible legislative ethics probe, according to a frequent critic and rival for the speaker's position.

Rep. Anthony DiFruscia, R-Windham, a challenger for the speaker's post who has criticized Chandler in the past for "political chicanery," said Thursday that he expects an ethics probe to be launched within the New Hampshire Legislature. DiFruscia said he is not pursuing the ethics investigation himself, but that colleagues intend to scrutinize the Chandler fund-raisers.

The legislative ethics handbook, under guideline 27, instructs elected officials to "list in alphabetical order the full name, post office address, occupation, and principal place of business, if any, of all contributors who gave an individual or an aggregate total of more than $50 from any gift, honorarium or testimonial as defined in RSA 15-B:1. (Do not include campaign contributions.)" Revised Statute Annotated 15-B:1 excludes political contributions and incidental or insignificant gifts from the definition of a gift that must be reported.

DiFruscia said he is drafting legislation to close loopholes in this law. A bill should be drafted within a week to 10 days, he said.

The attorney general's office is investigating Chandler's failure to report nearly $64,000 in gifts, much of it from lobbyists, since 2001. DiFruscia requested the investigation, which aims to determine whether Chandler broke state campaign finance or gift laws.

Chandler declined to comment on Thursday, saying he will wait for the attorney general's office to conduct its investigation. In recent interviews, Chandler has called his failure to report gifts an honest mistake. He subsequently released lists documenting contributions that he received at his annual fund-raisers.

These lists are not enough for DiFruscia, a former Democrat from Massachusetts. DiFruscia said he and other lawmakers want to beef up state law so elected officials are required to document not only how they raise money but also how they spend contributions.

"What we'd like to do is make sure any 'friends of' committees do not contribute to the personal living expenses of members of the House," he said.

Chandler said in recent interviews that he used his gifts to pay for gas, new tires, and possibly his mortgage. He denied that the money was given to his political campaign, an important distinction because state law treats gifts differently than political contributions.

DiFruscia scoffed at the notion that Chandler's contributions were gifts at all.

"If you are a lobbyist, there would be no reason in the world for you to contribute to someone's mortgage," he said.

New Hampshire Public Radio, which first reported on the corn roast donations, recently asked if Chandler should report his gifts as taxable income, reporting differing opinions among tax attorneys.

A practicing trial attorney, DiFruscia said, "This can go deeper than the attorney general's office."

"One of the reasons I decided to run for the speaker is I was concerned about the fact that much of what has occurrred since I've been up there the last three terms, there seems to be a lot of rush to judgment on various important pieces of legislation such as school funding and various lawsuits against the members of the House," he said.

"Most of the candidates that I've talked to. ... we've always been concerned about what is the influence of lobbyists on the volunteer legislature. It's apparent now that all of the people who were on the lists for the corn roasts should be interviewed," he said.

Four years' worth of receipts at Chandler's annual Old Fashioned Corn Roast Gala fund-raiser reflect a mix of donors.

• In 2001-2002, a list of 27 contributors submitted to the secretary of state's office included big businesses such as AT&T and Anthem Insurance ($500 apiece); local business owners such as David Doherty ($500) and Harry Washburn ($50); and lobbyists such as Bill Hounsell of North Conway ($100), Edward Dupont of Durham ($100) and Elizabeth Murphy of Deerfield ($200). A total of the money raised was not provided.

• In 2002-2003, a list of 57 contributors included Allan Hart ($1,000), RJ Reynolds ($500), Berlin City Bank ($500), Miller Brewing Co. ($500), LA Drew ($300) and NHBA State Bank PAC ($200). They gave $15,000, according to this initial filing.

• In 2003-2004, a list of 58 contributors included Isaacson Structural Steel of Berlin ($1,000), N.H. Medical Society of Concord ($1,000), Team Sununu in Rye ($1,000), Berlin City Bank in Berlin ($500), Fortis Health PAC of Concord ($250), and citizens such as Ross Heald of Jackson ($500), Paul Hennigan of Eaton ($100) and Frank Pomeroy of Winthrop, Mass. ($100). They gave $19,650, according to the initial filing.

State law, under Revised Statute Annotated 15-B:2, reads: "Every elected state and county official, including members of the general court, shall file a statement annually with the secretary of state by June 15 showing any income received by the official during the preceding 12 months ending June 1 from testimonials, gifts, honorariums, donations, or any other source, when the receipt of such income is attributable to the office held by the official. This report shall not include campaign contributions, income received by the official in his regular course of employment or business or salary, mileage, or expense payments made to the official by the state or county for performance of official duties for the preceding 12 months. The statement shall give in alphabetical order the full name, post office address, occupation, and principal place of business if any, of all contributors who gave an individual or an aggregate total of more than $50 of such income and the date received. The statement shall be a public record under RSA 91-A. For the purpose of this section, "income attributable to the office held by the official" means any gift, honorarium, or testimonial income which is received by an official in his official capacity, and which would not have been received by the official but for the office he holds."

The law also stipulates: "'Gift' shall not include contributions as defined in RSA 664."

RSA 664:2 reads: "'Contribution' shall mean a payment, gift, subscription, assessment, contract, payment for services, dues advance, forbearance or loan to a candidate or political committee made for the purpose of influencing the nomination or election of any candidate."

The attorney general's office must determine if Chandler's gifts are actually contributions and subject to campaign finance restrictions, DiFruscia said.

DiFruscia said he senses momentum behind the probe of fund-raisers. He denied that the controversy revolved around internal politics of the state Republican party.

"I don't think it's internal. I feel it's something that affects every member of the House," he said.