As a state lawmaker, Rep. Steve Yarbrough has pushed for new laws that bring in big money for certain charities. And as the head of one of those charities, he also has reaped the financial benefits of those laws.

Since 2003, his first year in the Legislature, the Chandler Republican has voted on or sponsored measures linked to a sharp rise in donations for groups that give scholarships to kids wanting to attend private and parochial schools.

He also is the executive director of the Arizona Christian Tuition Organization, the largest private student tuition charity in the state, and depends on donations to pay his near six-figure salary.

“At best I can discern, it’s not a conflict,” Yarbrough said of working for the student tuition nonprofit and supporting its causes through legislation. “It’s one of my passionate issues.”

Such student tuition organizations have reaped millions of dollars, though, some of it due to legislation led by Yarbrough, according to the Arizona Department of Revenue.

In 2005, Yarbrough championed a measure that increased the tax credit for married couples, meaning they could contribute $1,000 to the tuition organizations, up from $625.

The Arizona Department of Revenue concluded that an $11 million jump in cash collected by the state’s student tuition organizations afterward was partly “due to the increase in the maximum amount for married joint filers.”

Yarbrough’s organization was just one of 56 student tuition organizations operating in the state last year, triple the number that existed a decade ago. Also, the groups’ collections have increased over that same period, from $1.8 million in 1998, to $51 million last year.

Meanwhile, more money has poured into Yarbrough’s organization, a nonprofit he established in 1998 with two other attorneys. The group collected $10.9 million last year, up from $6.5 million in 2003. Some of that went to Yarbrough’s $96,000 annual salary from the organization.

Under state law, a nonprofit can keep 10 percent of donations to cover salaries and other administrative costs.

Besides proposing new laws giving individual tax credits, Yarbrough also has worked to allow corporations to claim credits for giving to student tuition organizations. However, according to its Web site, the Arizona Christian Tuition Organization doesn’t accept money from corporations.

The push for school tax credits is part of an overall effort to expand the so-called “school choice” to parents who can’t otherwise afford to send their children to private schools. Opponents argue such measures hurt public schools and their students by taking away much needed money.

Legally, Yarbrough’s right; there’s no conflict. Under state law, lawmakers are allowed to vote on and sponsor legislation relating to any organizations they are involved in, even if they stand to profit.

Yarbrough is not the only East Valley lawmaker who votes on measures he or she could benefit from financially. As head of one of the largest charter schools in the state, Rep. Eddie Farnsworth, R-Gilbert, routinely votes for measures that provide more funding for schools like his.

Farnsworth said it’s appropriate. “This is a citizen Legislature. Very few people would be able to serve in the state Legislature if they weren’t allowed to vote on every potential conflict,” he said.

To ensure his work for the student tuition group wasn’t a conflict, Yarbrough said that during his first three terms, he has sought the advice of lawyers and House Rules Committee attorneys who have advised that he is within his rights.

That hasn’t stopped many lawmakers or critics from questioning whether his actions are ethical, though. And others have pledged to fight for tougher laws that would prevent legislators from voting on measures in which they have a financial stake.

This year, Yarbrough has continued his efforts to bring in more money for nonprofits such as his, crafting a pair of bills that the state Department of Revenue, in a report ordered by Gov. Janet Napolitano’s office, estimated could raise up to $42 million for scholarships to public and private schools.

Yarbrough said the proposals are aimed at increasing the number of donors — not the amounts they give.

One would allow employers to automatically deduct money from an employee’s paycheck and deposit that portion directly to a student tuition organization or school of their choice. Taxpayers also would have the option of donating to public schools for extracurricular activities.

Yarbrough said this affords potential donors the opportunity to give by taking out a little bit of money from each paycheck, he said. Employers would decide if they want to offer the option.

The other proposal would extend the deadline for taxpayers to take advantage of the tax credit from Dec. 31 to April 15, with hope of attracting more donors around tax-filing time.

The two measures have been absorbed as part of the House budget proposal. That could cause some friction during negotiations for a $10.6 billion state spending plan. The governor has never been enthusiastic about expanding tax credits for entities or businesses that give money to private and parochial schools.

Yarbrough said questions about his support of measures that benefit organizations like his are nothing new, and the issue arises around budget time.

A family law attorney who also has taught classes at local colleges and universities, Yarbrough argues some would perceive a conflict regardless of which job he was in.

“I go to work. I get a salary. And whether I get it practicing law or teaching at a community college, I’d still be voting on community college budgets that could present a conflict,” he said.

Some legislative officials, including House Speaker Pro Tempore Bob Robson, R-Chandler, and House GOP press aide Barrett Marson said there is no conflict in Yarbrough’s case.

But others see a distinction between voting on measures that pose a potential conflict of interest and sponsoring them. As a sponsor, a lawmaker becomes the chief voice for a bill by testifying in committee hearings and using his or her influence to convince other lawmakers to support it.

“There’s not a legal distinction there” between voting for and sponsoring a bill, said Tim Hogan, an attorney for the Arizona Center for Law in the Public Interest. “But there certainly is a real-world one.”

Peggy Kerns, director of the Center for Ethics in Government at the National Conference of State Legislatures, agrees lawmakers should be careful when backing bills they could benefit from.

“Nobody wants a Jack Abramoff scandal in their Legislature,” she said, referring to the former Washington lobbyist at the center of a high-profile corruption case.

The NCSL says there are 53 bills in 23 states nationwide relating to conflict-of-interest laws. Kerns attributes that to Abramoff and other scandals.

Even some lawmakers here want to tighten up the state’s conflict-of-interest laws.

“They way the laws are written now, the only court you can prosecute someone for a conflict of interest is in the court of public opinion,” said Rep. Ed Ableser, D-Tempe. He went on to say he was going to introduce legislation next year to guard against future conflicts.