Oregon ethics commission faults Rep. Greg Smith for not naming clients

Rep. Greg Smith, R-Heppner, participates in a committee meeting in December 2022. (Connor Radnovich/Oregon Capital Chronicle)

Oregon’s government ethics watchdog on Friday dinged a state representative for failing to follow a law he voted for that requires government officials to disclose some sources of business income.

The Oregon Government Ethics Commission voted unanimously to move ahead with an investigation into Rep. Greg Smith, R-Heppner — a procedural move, as there isn’t much to investigate. Smith, who didn’t attend the commission’s meeting and didn’t immediately respond to an inquiry from the Capital Chronicle, acknowledged that he erred in not initially listing Harney County as a client on the economic interest statement he filed last year. He later amended the report.

Commissioners said they expected the investigation would end with a letter of education, or a formal note from the commission explaining the law and how to comply with it in the future. 

“I would hold Representative Smith to a little higher standard than some of the other folks we hear from, since — without going back and looking at the original bill — I’m assuming he voted on the bill that made this change,” commissioner Jonathan Thompson said. 

Oregon’s public officials, including lawmakers, have long had to disclose their major sources of household income on annual economic interest statements filed with the commission. They don’t have to include dollar amounts, and it largely operates on an honor system.

Last year was the first that officials had to also disclose some sources of income for businesses they own. Under a 2023 law, officials have to name clients that provide at least 10% of the business’ income and have an interest in the government body the official is a part of. For Smith, that’s any client with business before the Legislature; for a mayor it would be a client that interacts with city government. 

Smith’s consulting firm, Gregory Smith & Company LLC, has several clients that seek money or policy changes from the Legislature — where he serves as a vice chair of the budget-writing Joint Ways and Means Committee. His initial 2024 economic interest statement did not list any clients.

Smith told commission staff that he misunderstood the law and thought he needed to list clients that made up 10% of his household income, not business income. The Malheur Enterprise reported last year that Smith described his annual household income as more than $1 million, including his salary from the Columbia Development Authority, his legislative stipend, his wife’s salary as his legislative assistant and income from his business. 

After the commission began its review, Smith updated his economic interest statement to include three clients: Harney County, Umatilla Electric Cooperative and Eastern Oregon University. 

Eastern Oregon University abruptly ended its nearly $140,000 annual contract with Smith last fall, the Enterprise reported, while Harney County planned to renew his $7,000-a-month contract. The Umatilla Electric Cooperative hasn’t disclosed what it pays Smith. 

Smith voted for the 2023 law requiring more disclosures, as did all but five House Republicans and two Senate Republicans. Footage from a legislative committee he led that advanced the bill features Smith asking how the ethics commission would determine which clients hit that 10% mark.

“I believe it’s generally up to the honesty and dedication of the people filing those statements of interest,” the committee’s analyst responded.