The Liftoff: Shemia Fagan's explosive week
PLUS: How much state workers make; two Oregon Republicans meet Trump; May election news; "Uncle Phil" bets big in Portland; trouble in Clackamas County; and more!
Welcome back to The Liftoff! It’s been a big week for Oregon.
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1. Shemia Fagan under scrutiny after WW breaks story of her private consulting for La Mota
On Thursday, Sophie Peel from Willamette Week broke major news that Secretary of State Shemia Fagan, who makes $77,000 in her elected role, is also a paid consultant for Veriede Holding, LLC, an affiliate of the cannabis chain La Mota. La Mota has been in the headlines for having more than $7 million in tax liens issued against them by the IRS and Oregon Department of Revenue—while donating over $200,000 to Democratic candidates. The owners of the company, Aaron Mitchell and Rosa Cazares, have also been sued by vendors for allegedly not paying their bills.
The Timeline
Fagan contacted the Oregon Government Ethics Commission (OGEC) in early February by phone—she did not request written advice, which WW notes is unusual.
Fagan recused herself on Feb. 15 from her agency’s audit of the state’s regulation of the cannabis industry and OLCC. But, according to WW, her agency’s auditors had already sent a final draft of the audit to OLCC a week earlier on Feb. 8.
Twice in emails and at least once in-person during the more than year-long audit process, Fagan directed agency staff to interview Cazares about the scope of the audit. Auditors did ultimately interview her in early 2022.
According to WW, Fagan has not registered her consulting business with the state.
On Friday, Senate GOP Leader Tim Knopp and House GOP Leader Vikki Breese-Iverson both called for Fagan to resign, saying: “This appears to be an ethics violation and, if it isn’t, then Oregon’s ethics laws are broken. An elected official cannot take funds for personal use from someone they regulate.”
Gov. Kotek told Willamette Week late Friday that she has requested dual OGEC and Oregon Department of Justice investigations of the circumstances surrounding the OLCC audit.
By the end of the day Friday, OGEC had received two ethics complaints—and it announced it would be launching a formal investigation.
By Saturday, most top-ranking Oregon Democrats who received a check from La Mota had donated the money to charity.
So how bad is this for Fagan? Time will tell—but the initial response from journalists and state leaders has been uniformly negative and forceful. Here are some excerpts:
An Oregonian headline from a Hillary Borrud piece: “Secretary of State Shemia Fagan pledged to build trust in Oregon government. Now, she won’t talk about paid pot side job”
Statement from Speaker Dan Rayfield to OPB: “These allegations are bad, it’s difficult to see them any other way. It has obviously impacted the credibility of the secretary of state’s audits.” A spokesperson for Senate President Rob Wagner added that he has “significant concerns.”
Journalist Anna Griffin tweeted: “Inexplicable move by a rising star progressive politician.”
Nigel Jaquiss tweeted: “Pretty remarkable scoop”.
WW News Editor Aaron Mesh tweeted: “This is the elected official who safeguards the integrity of Oregon elections, taking instructions from a business owner about how to audit the state agency that regulates her business. It would be pretty bad even if the official did not go on to work for the business owner on the side. But she did.”
2. Portland Headlines: Big bucks from Phil Knight and a big mistake in Multnomah County
Phil Knight’s huge $400 million investment in Portland. Monday was a blockbuster day for Nike founder Phil Knight and Portland’s Rukaiyah Adams. “Uncle Phil” announced he is investing $400 million into Adams’ new 1803 Fund to support Portland’s Black community. The Fund will combine elements of private investing and philanthropy to help people thrive and communities prosper, writes The Skanner News.
The O’s sports columnist, Bill Oram, put an interesting spin on the huge donation. Could re-investing in the Black community of Portland be more important to Knight and his legacy than owning the Trail Blazers?
Knight told the Wall Street Journal that Portland is in crisis and he wants to 'give the whole city hope' via the new initiative.
The decades long fight with Portland Police and the City of Portland over body cams is now over. The Portland City Council on Wednesday unanimously adopted a negotiated body camera policy for police, ending the impasse and “allowing the nation’s largest municipal police agency lacking the technology to now outfit some officers with the equipment,” writes Maxine Bernstein with The Oregonian.
Portland is restricting a 16-block area of downtown to only zero-emissions delivery vehicles as part of a $2 million federal grant program, reports KGW. Basically, the Portland Building, the Federal Building, and the County Courthouse will be off-limits to traditional gas-powered delivery vehicles.
May Election News
Oops: The Multnomah County Elections Division was supposed to send out 560,000 ballots for the May primary election. Just one problem: The county erroneously included the District 3 county commissioner race, which only a portion of voters are eligible to vote on, on all printed ballots. So, now the county must now reprint all the ballots, reports Willamette Week.
From the Oregonian: “People of color will hold majority on Portland School Board, a first for the state’s largest district”
Meanwhile, Willamette Week has announced its endorsements for the May 2023 election, including Julia Brim Edwards for Multnomah County Position 3 and Derrick Peterson for Portland Public Schools board.
3. Two months left for the Oregon Legislature
Consider this your friendly reminder that in Oregon, legislative sessions are only 160 days long on odd-numbered years—which means legislators need to wrap up their work by the end of June.
But, even with Republican delay tactics, bills are moving briskly through Oregon Senate. Senate Republicans are still demanding that every bill be read out loud in full. “But Republicans appear to have failed to slow down the Senate’s work. The Senate had passed 261 bills as of Monday, compared to 198 by the same time in the last long session in 2021, according to the Secretary of the Senate,” writes The Oregonian.
Oregon lawmakers heard hours of emotional testimony on Tuesday about a proposed constitutional amendment on abortions rights, same-sex marriage, and gender-affirming care. Senate Joint Resolution 33 would go to voters in the 2024 election if the Legislature passes it.
Legislative Round-Up:
From Pamplin: “Witnesses testify to Stout's 'cycle of abuse' in final day of hearing”
With two months left in the legislative session, the issue of capping political contributions has received little attention and lawmakers are hedging on whether a proposal can pass, reports OPB’s Dirk VanderHart.
Three Clackamas County lawmakers have introduced a bill that would place a two-year pause on the Oregon Department of Transportation’s plans to toll drivers who use Interstate 205, writes Nigel Jaquiss of Willamette Week.
Speaking of Clackamas County, more from Pamplin: “Additional cost of Tootie Smith's reversal: $61 million in courthouse funding?”
Lawmakers are considering two competing proposals to pay for Oregon’s share of a new Interstate 5 bridge between Portland and Vancouver. Over 60 advocates on both sides spoke during a two-hour hearing of the Legislature’s Joint Committee on Transportation on Thursday, writes Peter Wong of The Portland Tribune.
Oregon Spirits Board? Modeled after the Oregon Wine Board, the board would promote liquor produced in Oregon. But, addiction and treatment advocates are pushing back on HB2976, which would use tax dollars to promote Oregon distilleries, arguing the state shouldn’t push “the consumption of a toxic, addictive carcinogen,” writes The Oregonian.
Two bills to reduce takeout containers are headed to Gov. Kotek. The House on Wednesday passed SB 543, which bans Styrofoam and other polystyrene takeout containers. Minutes later, they passed SB 545, which directs the Oregon Health Authority to craft rules for how customers can use reusable containers at restaurants, reports the Capital Chronicle.
4. What’s next in criminal justice reform, with Justin Low
Justin Low is an investigative researcher for the Oregon Justice Resource Center (OJRC). OJRC is an organization focused on promoting civil rights and improving legal representation for historically underserved communities; they have been major proponents for criminal justice reform in Oregon. Justin grew up in Oregon City and was raised in an immigrant Filipino-Chinese household.
He attended the University of Portland and graduated with a BA in Political Science and Psychology. After college, Justin went on to work as a paralegal/litigation assistant, a campaign manager for state and local races, and a legislative assistant in the Oregon State Legislature. He recently earned his master's degree in Criminal Justice from USC. In this episode, we talk about some important issues in criminal justice reform in Oregon that are likely to be hot topics—and why they matter to advocates.
5. Sponsored Message from Harrang Long P.C.: Harrang Long’s Appellate Practice
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6. How much state workers earn (and other state agency news)
From OPB: “Oregon state government workers struggle to deliver services amid staffing shortages”
From Pamplin: “U.S. Supreme Court sides with Frank Gable against Oregon Justice Department”
The Oregonian is out with its searchable database of state employee salaries. Here are a few trends worth noting, according to their reporting.
“A total of 7,170 state employees received a base pay of at least $100,000 during the fiscal year ending June 30, 2022, according to state data. That was a 28% increase from the previous year.”
“The vast majority of state workers made under $100,000. The median base pay was about $59,000…When overtime and other income was included, full-time state workers earned a median total pay of about $74,940”
7. The Oregon Way: Higher Ed and China
Oregon Way contributors Mark Hester and Gary Conkling have two very different pieces for you this week. Hester gives a breakdown of the gaps and expectations college grads face on the job market and Conkling focuses on the downward spiral of the US-China relationship—and how it could impact Oregon.
8. News Roundup: Oregonians meet Trump, a GOP scandal, and bad Intel news
Oregon’s Republican National Committeeman Solomon Yue and former Baker City Mayor Kerry McQuisten nabbed a meeting with former President Donald Trump at the National Rifle Association’s (NRA) annual conference. According to McQuisten, the former president said he would be hosting a rally in Oregon at some point.
After spending weeks calling for investigations into the OLCC over a rare bourbon scandal, Oregon Republicans now have a rare bourbon scandal of their own making: From The O: “How scarce bourbon funneled money to rural Oregon Republican committee”
Yikes: Intel reported its largest loss in company history — an ominous sign for the tech industry at large—and one of Oregon’s largest employers.
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About the Authors
Ben Bowman is the state representative for Oregon House District 25 (Tigard, Metzger, and South Beaverton) and a member of the Tigard-Tualatin School Board. In his day job, he works as an administrator for a public school district. Previously, he worked as a legislative aide for former Reps. Margaret Doherty and Val Hoyle. He also co-hosts The Oregon Bridge podcast. In the newsletter and podcast, he speaks only for himself.
Alex Titus is a small business owner and consultant to businesses, nonprofits, and associations. Previously, he served as an Advisor in the Trump Administration and as a Policy Advisor to President Trump’s Super PAC. His writing has appeared in National Review, Fox News, The Hill, RealClearPolitics, and other publications.
Kristina Edmunson has been everything from press assistant for Governor Kulongoski, media advance associate for Vice President Joe Biden, and communications director for Attorney General Rosenblum. Born and raised in Eugene, she has been involved in some of the biggest and most controversial policy and legal decisions in Oregon over the last decade. She speaks only for herself in her contributions to The Liftoff.