Longtime Oregon lawmaker repeatedly broke ethics laws to secure hefty raise, commission finds

Longtime Republican lawmaker Greg Smith broke Oregon ethics laws when he used his office to try to secure a $109,000 raise for his work as executive director of an eastern Oregon economic development agency, then maneuvered to get a $66,000 pay hike and make it retroactive, the Oregon ethics commission concluded Friday.

In a unanimous vote, commissioners endorsed an investigator’s finding that Smith, the longtime executive director of the federally funded Columbia Development Authority, repeatedly failed to declare a conflict of interest and used the power of his office for personal financial gain.

Smith got his salary raised from $129,000 to $195,000 without his bosses’ authorization and directed the employee in charge of his agency’s finances that the pay hike be made retroactive to April 2024, the investigator found. When the development authority board learned of Smith’s misrepresentations, it voted in September of that year to rescind the raise, records show. But he has not repaid it, ethics commission investigator Casey Fenstermacher wrote in her report dated Thursday.

Smith now has the option to request a hearing on his case before an administrative law judge or to work with the ethics agency to reach a settlement, including any fine or other punishment. He did not take part in Friday’s hearing nor did he respond to a request for comment left with his legislative chief of staff Friday afternoon.

Staffers at the Oregon Government Ethics Commission will formally propose a settlement with Smith, including financial penalties, by early January, commission director Susan Myers told The Oregonian/OregonLive Friday. The maximum fine her agency can propose is $10,000, she said, but the nine-member state ethics commission could vote to authorize a higher penalty.

The ethics commission did just that in 2018 when it rejected an agency proposal to fine former Gov. John Kitzhaber $1,000 for ​​ethics violations that allowed his fiancée, Cylvia Hayes, to secure lucrative consulting contracts during her time as first lady. Commissioners instead proposed a $50,000 fine and ultimately struck a deal with the four-term governor to pay $25,000.

Smith, who holds a key role on the Legislature’s powerful budget-writing committee, was elected in 2024 to a 13th term in the House, making him its longest serving member.

The ethics commission dinged him earlier this year for failing to disclose a key client of his consulting business on his required annual financial disclosure form. That client, Harney County, had paid him $7,000 a month to represent its interests at the Legislature.

In that case, Smith acknowledged the omission in his filing and later amended it. The commission closed that case, as it has other cases or incomplete financial filings, by issuing Smith a formal letter of education, Myers said.

According to the Salem Reporter, Smith is also under investigation in two other state ethics proceedings. Investigators are examining whether Smith broke the law when he claimed pay for working for the development authority at the same time he was performing private consulting work or working as a state legislator, the Salem newsroom reported.

The Columbia Development Authority, based in Boardman, is made up of several eastern Oregon governmental entities including the Port of Morrow and is in charge of redeveloping a former military base.

Once the ethics commission formally notifies Smith of its proposed settlement and his right to request a hearing, he will have 21 days to decide which option to pursue, Myers said. Nearly 99% of officials presented with that option choose to pursue a settlement, she said.

The commission normally takes into account both aggravating factors, such as the size of the financial windfall and whether the official repeatedly broke the law, and mitigating factors, such as whether an official acted on the advice of a government lawyer or quickly paid restitution, Myers said.