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Oregon’s second-highest elected official resigned after her side gig with a cannabis company prompted questions about ethical violations

Oregon Secretary of State Shemia Fagan announced she’s resigning from her office effective May 8. Fagan faces an ethics investigation and calls to resign from state Republican leaders after Willamette Week reported Fagan worked as a consultant for the cannabis dispensary chain La Mota. Fagan’s office oversees the Oregon Audits Division, which recently released an audit of the Oregon Liquor and Cannabis Commission’s regulation of cannabis. Fagan reportedly earned $10,000 a month from the cannabis company, more than the $77,000 salary she earned in office. She also received $45,000 in campaign contributions from the company’s founders.

Since Willamette Week revealed her consulting job on April 27, further reporting showed she didn’t recuse herself from an audit of the Oregon Liquor and Cannabis Commission until a first draft was completed, that she failed to get written advice from the Oregon Ethics Commission and that she spoke to the lieutenant governor of Connecticut as part of her work with La Mota. On April 28 Gov. Tina Kotek requested an investigation into the OLCC audit. Kotek said she supported Fagan’s decision to resign in a statement.

“It is essential that Oregonians have trust in their government. I believe this is a first step in restoring that trust. During the upcoming appointment process, my office will do everything possible to support the hard-working staff in the Secretary of State’s office and ensure this will not disrupt the May 16 election,” Kotek said.

The resignation comes less than a week after Republican lawmakers demanded Fagan’s resignation. In a joint statement Senator Tim Knopp (R-Bend) and House Leader Vikki Breese-Iverson (R-Prineville) said the revelations about Fagan appeared to be an ethics violation, and that officials can’t take funds from someone they regulated. Both lawmakers reiterated their position and called for more transparency in Oregon government after Fagan announced her resignation.

Fagone
Courtesy of Shemia Fagan
Secretary of State Shemia Fagan is resigning less than a week after it was revealed she held a consulting job with one of the state's largest cannabis dispensary chains.

“Today’s resignation of Secretary Fagan reflects the level of corruption occurring in state government. Since the beginning of the year, I have said we need a transparent process. The level of abuse Secretary Fagan flaunted from her official position is just another example the extreme measures of one-party rule in Oregon,” Breese-Iverson said in a press release.

Fagan claimed in a statement that her private employment didn’t violate ethical guidelines, and said she believes an investigation will uncover no wrongdoing. Deputy Secretary Cheryl Myers will assume Fagan’s role starting May 8 until a new secretary is appointed by Kotek. Myers has a professional background in public policy, education and economic development.

“This is an unfortunate situation, but a change of leadership will allow agency staff to continue their good work with less distraction moving forward,” Myers said in a press release. “My first priority is to make sure Oregonians receive the customer service they deserve. This agency does such critical work, and it’s our job to put Oregonians first during this transition.”

Jack Harvel

Jack is originally from Kansas City, Missouri and has been making his way west since graduating from the University of Missouri, working a year and a half in Northeast Colorado before moving to Bend in the Spring of 2021. When not reporting he’s either playing folk songs (poorly) or grand strategy video games,...
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