Marijuana job lands Oregon Secretary of State in trouble

Oregon Secretary of State Shemia Fagan is in sizzling water, with Republican lawmakers calling for her resignation and the Democratic governor searching for investigations as a result of Fagan took a consulting job with a marijuana agency.

The matter got here to a head Friday after Fagan’s workplace launched an audit of the state’s marijuana regulators, the Oregon Liquor and Hashish Fee. The audit referred to as for the OLCC to “reform” some guidelines for marijuana companies, saying they’re “burdens” when mixed with federal restrictions on interstate commerce, banking and taxation.

Fagan, a Democrat, recused herself from the audit as a result of she is a paid guide of an affiliate of marijuana retail chain La Mota, Fagan’s spokesman Ben Morris mentioned at a digital information convention concerning the audit’s launch.

La Mota’s co-owner has hosted fundraisers for prime Democratic Oregon politicians, together with Fagan, whereas the co-owner, her accomplice and their enterprise allegedly owe $1.7 million in unpaid payments and extra in state and federal taxes, in keeping with Willamette Week, a Portland newspaper.

Fagan did not seem on the information convention, which included her spokesman, deputy and the audits director. Information of the consultancy was first reported Thursday by Willamette Week.

Morris denied Fagan’s outdoors work represented a battle of curiosity and mentioned Oregon Authorities Ethics Fee tips particularly enable public officers to take care of personal employment.

However hours after the audit press convention, Republican legislative leaders, who’re within the minority within the Legislature, referred to as for Fagan to resign over the consulting job.

“This seems to be an ethics violation and if it is not then Oregon’s ethics legal guidelines are damaged,” Senate Republican chief Tim Knopp and Home Republican chief Vikki Breese-Iverson mentioned in a joint assertion.

Gov. Tina Kotek, a Democrat, indicated she had issues afterward Friday.

“It is vital that Oregonians belief their authorities,” Kotek mentioned in an emailed assertion.

Kotek mentioned she was urging the Oregon Authorities Ethics Fee “to instantly examine this case” and requested the Oregon Division of Justice to look at the audit.

The audit questioned the OLCC’s requirement that marijuana companies hold their stash behind metal doorways and have 24-hour video surveillance programs. The OLCC ought to make marijuana laws extra like these governing distilled spirits, which the company additionally regulates, the auditors mentioned.

The audit additionally mentioned Oregon ought to put together for the U.S. authorities ultimately legalizing marijuana and place the state, with its big stockpiles of the drug, as a nationwide chief within the trade.

Oregon, lengthy recognized for its potent marijuana, can be competing with different pot-producing states — notably California, which additionally has an enormous oversupply — for the export market if marijuana is ever legalized nationally.

“Now’s the time for Oregon to arrange its system for a future when hashish is authorized nationally,” Oregon Deputy Secretary of State Cheryl Myers mentioned on the information convention.

Oregon Audits Director Kip Memmott famous with a little bit of envy that Canada legalized marijuana and is “much more proactive in taking a look at the advantages financially.”

Oregon can prepared the ground within the U.S. in how pot is regulated, whereas additionally providing its high-end strains of marijuana, Memmott mentioned.

“We’ve sort of a signature commodity, together with … our timber and all the opposite nice issues that Oregon produces right here. And there is a actual alternative,” Memmott mentioned.

Oregon’s auditors reminded the OLCC to comply with its personal strategic plan to place the state as a nationwide chief by rising the variety of talking engagements at nationwide conferences, holding extra statewide conferences and championing a nationwide framework for hashish regulation.

OLCC Govt Director Craig Prins wrote in response that his company is eager to maneuver rapidly if, and when, interstate marijuana commerce is permitted.

Prins mentioned he expects “solely the best high quality merchandise from well-regulated programs, which have acknowledged testing, packaging, labeling, and traceability requirements, can be allowed on the market into different states.”

Oregon has for years prioritized these requirements, that are aimed toward defending shoppers, Prins mentioned.

A complete of 21 states and Washington, D.C., have legalized leisure use of marijuana, however activists see little probability of the present Congress shifting towards nationwide legalization. Nonetheless, there’s hope the Biden administration will enable pot commerce amongst states which have legalized it.