Ethics Committee Opens Chandler Probe

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By Dan Gorenstein on Tuesday, October 12, 2004.
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The Legislative Ethics Committee has opened an investigation into House Speaker Gene Chandler's fundraising activities.

Over the past four years, the top House Republican raised over 60 thousand dollars in the past four years.

New Hampshire Public Radio's Dan Gorenstein reports.

The Legislative Ethics Committee voted unanimously to examine whether House Speaker Gene Chandler has violated state ethics guidelines.

The committee was responding to two house members, a Republican and Democrat, who filed a complaint suggesting the Speaker did in fact violate the state's code of ethics when he held fundraisers to pay for personal expenses.

They cited the guideline that prohibits a legislator from receiving a gift in excess of $250 dollars, if it comes from a person with a vested interest in statehouse business.

Just this year, Chandler's annual corn roast fundraiser brought in 28 individual contributions ranging from $300-$1000.

Many of those gifts came from political action committees and corporations such as the New Hampshire Medical Society and Anthem Blue Cross/Blue Shield.

Ethics Committee Chair Republican Shawn Jasper says Chandler's records were sufficient evidence to warrant opening a case.

:33 we have the guidelines that set limits on the amount that can be accepted. We had information in front of us that showed that money in excess of that limit may have been accepted by the speaker and so we will move forward to look at it in depth.

Representative Jasper says the Committee is not opening a formal hearing because it's not clear who received the money, or how it was spent.

1:54 if that money were given to his political campaign, that would not be a violation. From what we have seen that is not the case. But that's what we are doing now. We are giving the speaker the opportunity to tell us what that money was for.

The key questions the Committee will consider are whether the contributions went directly to the Speaker, and if he spent the money on personal items.

The Speaker did not return phone calls.

But by his own account, Chandler says he was in charge of the money, and he spent it on such things as car payments and laundry.

In an interview a few weeks ago, the Speaker said providing him with a financial cushion is exactly why his friends created the Friends of Gene Chandler Committee.

7:47 it's been used in personal ways, there is no denying that. I haven't used it to take trips, but I have used it to make car payments, yeah no question. And that is the intent of what the committee did it for.

Chandler said the money went into a special checking account that he alone controlled.

The Speaker thought this was a legal way to raise unlimited funds from anyone.

In fact, he believed the only restriction was that the money couldn't be spent for political purposes.

Since then, he's admitted he's made a mistake, and reported his contributions.

Chandler has 14 days to respond to the Ethics Committee.

Around the statehouse, reaction to the new developments was muted.

Democratic Representative Terri Norreli says given the facts, it appears the Ethics Committee made the right decision.

But while she says she isn't sure if the Speaker violated the guidelines, she says if he did, he needs to own up to it.

T.5
4:28 if that is the guideline, we've adopted these guidelines, we need to abide by them. If there are people who believe that the guidelines are inappropriate, we need to take a look at changing them. In the meantime, that's what the guidelines are.

Senate Majority Leader Bob Clegg called for patience.

He says this situation clearly shows it's time for an overhaul of the state's political reporting laws.

T.6
1:20 I think anyone who gets this confused something of this size isn't reported, we need to make it clearer. And more definitive about what is a reportable expense, and what isn't.

In addition to the Ethics Committee probe, Chandler faces an Attorney General's investigation into whether he violated reporting laws.

The Ethics Committee is scheduled to meet next on October 28th.

At that time, the committee can dismiss the case, continue its investigation, or call for a formal hearing.

For NHPR News, I'm DG.

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