Oregon secretary of state announces resignation following weed consultation scandal

PORTLAND, Ore. (KATU) — Oregon Secretary of State Shemia Fagan has announced she will resign from the state's second-highest elected position, effective next Monday. This follows the expanding scandal of her moonlighting as a consultant for a marijuana company.

Fagan, a Democrat, apologized on Monday for working for the marijuana company, which has a record of unpaid bills and taxes, but indicated she intended to serve the remaining two years of her term.

She worked for two months as a paid consultant for an affiliate of the company, La Mota, while her office was wrapping up an audit of the state's pot regulator, the Oregon Liquor and Cannabis Commission.

The audit released Friday called for the OLCC to “reform” some rules for marijuana businesses, saying they are “burdens” when combined with federal restrictions on interstate commerce, banking and taxation. Fagan was absent during a Zoom news conference timed with the audit's release.

On Monday, Fagan announced she terminated that consulting job. The following day she announced she would be stepping down as of next Monday.

"While I am confident that the ethics investigation will show that I followed the state’s legal and ethical guidelines in trying to make ends meet for my family, it is clear that my actions have become a distraction from the important and critical work of the Secretary of State’s office," Fagan said, in part, in a statement.

Fagan will continue to carry out her duties until Monday, when Deputy Secretary Cheryl Myers will take over as the interim secretary of state.

Myers issued a statement, saying, in part, "This is an unfortunate situation, but a change of leadership will allow agency staff to continue their good work with less distraction moving forward.”

Gov. Tina Kotek said she supported Fagan's decision to resign, saying it is "essential that Oregonians have trust in their government."

Kotek is now tasked with appointing a replacement, who will also be from the Democratic party, like Fagan. Statutorily, the governor's office said, there is no deadline for that appointment.

Fagan's resignation comes just two weeks before Oregon's Special District Election on May 16. State officials said the Oregon Elections Division and county elections offices across the state are "fully prepared to administer" those local elections.

Before she was elected to Oregon's second-highest job in 2020, Democrat Shemia Fagan was a State Representative and then a State Senator. She defeated Republican challenger Kim Thatcher in that election.

Fagan replacedSecretary of State Bev Clarno, who was appointed by then Governor Kate Brownto fill the term of Secretary of State Dennis Richardson, a Republican, who died in office.

FULL STATEMENT FROM FAGAN:

“While I am confident that the ethics investigation will show that I followed the state’s legal and ethical guidelines in trying to make ends meet for my family, it is clear that my actions have become a distraction from the important and critical work of the Secretary of State’s office. Protecting our state’s democracy and ensuring faith in our elected leaders – these are the reasons I ran for this office. They are also the reasons I will be submitting my resignation today. I want to thank the incredible staff in the Secretary of State’s office for their hard work and Oregonians for the opportunity to serve them. It has been a true honor to serve the people of Oregon.

At this time, I believe it is in the best interest of our state for me to focus on my children, my family, and personal reflection so that the Secretary of State staff can continue to offer the exemplary customer service Oregonians deserve.”'

FULL STATEMENT FROM MYERS:

“This is a resilient agency, with strong division leadership and internal systems that can withstand change. We are ready to continue the important work of the Secretary of State’s office during this transition.

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.

This is an unfortunate situation, but a change of leadership will allow agency staff to continue their good work with less distraction moving forward.”

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Editor's note: The Associated Press contributed to this report.