ORS 244: Oregon Government Ethics Rules, Gifts, and Penalties

Oregon government ethics rules, codified in ORS Chapter 244, govern how public officials handle conflicts of interest, gifts, outside income, and the line between public duties and private benefit. The Oregon Government Ethics Commission (OGEC) enforces the chapter and can impose civil penalties from $5,000 to $25,000 depending on the type of violation.1Oregon Public Law. Oregon Revised Statutes 244.350 – Civil Penalties, Letter of Reprimand or Explanation The rules reach the Governor, elected officials, agency staff, judges, and uncompensated volunteers alike.

Who the Rules Cover

ORS 244.020(15) defines a public official as any person serving the State of Oregon, its political subdivisions, or any other public body as an elected official, appointed official, employee, or agent, whether or not they are paid.2Oregon State Legislature. Oregon Revised Statutes Chapter 244 – Government Ethics The First Partner (the Governor’s spouse) is specifically included.

The “agent” category is where the definition reaches further than most people expect. An agent is anyone performing a governmental function on behalf of the government, as opposed to providing services to the government. Depending on the circumstances, that can include private contractors and volunteers.3Oregon Government Ethics Commission. Oregon Government Ethics Law An unpaid seat on an advisory board or a volunteer role on a government task force makes you a public official for ethics purposes, subject to the same rules as a salaried state employee.

The chapter also uses a broad definition of “relative.” It covers your spouse, parents, stepparents, children, siblings, stepsiblings, and in-laws, anyone you have a legal support obligation for, and anyone whose employment benefits you receive or who receives benefits arising from your public employment.2Oregon State Legislature. Oregon Revised Statutes Chapter 244 – Government Ethics

Using Office for Financial Gain

ORS 244.040 bars public officials from using their position to obtain a financial benefit or avoid a financial cost that would not otherwise be available to them. The prohibition reaches the official’s relatives, household members, and any business the official or those individuals are associated with.4Oregon Public Law. Oregon Revised Statutes 244.040 – Prohibited Use of Official Position or Office Steering a contract to a spouse’s company, or securing a discount the public cannot get, both fit the rule.

The statute lists exceptions. Standard compensation and benefits that come with the job are fine. Gifts within the ORS 244.025 limits, honoraria allowed under ORS 244.042, expense reimbursements, unsolicited professional achievement awards, and items excluded from the statutory definition of “gift” fall outside the prohibition.2Oregon State Legislature. Oregon Revised Statutes Chapter 244 – Government Ethics Officials may also accept compensation for teaching at a post-secondary institution. These exceptions apply whether or not the official has disclosed a conflict.

Conflicts of Interest

ORS 244.120 requires public officials to address both actual and potential conflicts, with procedures that depend on how certain the conflict is and what kind of position the official holds.5Oregon Public Law. Oregon Revised Statutes 244.120 – Methods of Handling Conflicts An actual conflict exists when the official’s action would definitely produce a financial benefit or detriment for them, a relative, or an associated business. A potential conflict exists when the financial impact is only possible.

Elected officials other than state legislators, and appointed board or commission members, follow the same framework. For a potential conflict, the official publicly announces the nature of the conflict before acting, then may discuss and vote. For an actual conflict, the official publicly announces the conflict and must refrain from any discussion, debate, or vote.5Oregon Public Law. Oregon Revised Statutes 244.120 – Methods of Handling Conflicts

There is one carve-out. If a body cannot reach the minimum number of votes needed for official action without the conflicted official, that official may vote. Even then, the official still cannot participate in discussion or debate.6Oregon Government Ethics Commission. Identifying Conflicts of Interest

Appointed officials who are not on a board or commission handle it differently. They send a written notice to the person who appointed them describing the conflict and requesting reassignment. The appointing authority either designates someone else or gives the official specific instructions on how to proceed.5Oregon Public Law. Oregon Revised Statutes 244.120 – Methods of Handling Conflicts Legislators follow their house’s rules, and judges either recuse or advise the parties.

Gifts and the $50 Limit

ORS 244.025 caps gifts at $50 in aggregate value per calendar year from any single source that has a legislative or administrative interest in the official’s decisions. The cap covers the official, their relatives, and household members, and it runs in both directions: a person with that kind of interest cannot offer gifts exceeding $50 in aggregate value to the official or a candidate during a calendar year.2Oregon State Legislature. Oregon Revised Statutes Chapter 244 – Government Ethics

Several things are not “gifts” at all under ORS 244.020(7):

  • Anything from relatives or household members, at any value.
  • Campaign contributions as defined under Oregon election law.
  • Unsolicited plaques, trophies, or desk mementos with an expected resale value under $25.
  • Publications, subscriptions, and informational materials related to the official’s duties.
  • Food and beverages at receptions or meetings where the official is representing a government body.
  • Reasonable travel expenses paid by federal, state, or local governments, Native American tribes, membership organizations to which a public body pays dues, or 501(c)(3) nonprofits, for conferences and events where the official is speaking or representing government.

Something that looks like a gift may fall outside the definition entirely, so the exclusions are worth checking before assuming the cap applies.7Oregon Public Law. Oregon Revised Statutes 244.020 – Definitions

Honoraria and Speaking Fees

ORS 244.042 generally bars public officials from soliciting or accepting honoraria connected to their official duties. An official invited to speak at an event because of their government role cannot accept a speaking fee for the appearance.8Oregon Public Law. Oregon Revised Statutes 244.042 – Honoraria Two exceptions apply to most officials: an honorarium, certificate, plaque, or commemorative token worth $50 or less is permitted, and an official may be paid for services tied to their private profession or expertise.

A stricter rule applies to the Governor, First Partner, Secretary of State, State Treasurer, Attorney General, and the Commissioner of the Bureau of Labor and Industries. They cannot accept any honorarium or payment for any speaking engagement or presentation. They may still accept food, beverages, travel, and lodging otherwise allowed under the chapter.8Oregon Public Law. Oregon Revised Statutes 244.042 – Honoraria

Nepotism

ORS 244.177 restricts public officials from making employment decisions involving their own relatives or household members. An official cannot hire, promote, fire, or demote a relative or household member within the public body the official serves or has jurisdiction over, unless the official follows the conflict of interest disclosure process.9Oregon Public Law. Oregon Revised Statutes 244.177 – Employment of Relative or Member of Household

The rule reaches further than the final decision. An official cannot participate in any interview, discussion, or debate about the employment of a relative or household member within their body. Serving as a reference or giving a recommendation is still allowed, since those are treated as normal job functions rather than exercises of official authority.9Oregon Public Law. Oregon Revised Statutes 244.177 – Employment of Relative or Member of Household

Annual Financial Disclosure

ORS 244.050 requires officials in designated positions to file a Statement of Economic Interest (SEI) with the OGEC by April 15 each year.10Oregon Public Law. Oregon Revised Statutes 244.050 – Persons Required to File Statement of Economic Interest The list is long and includes the Governor, statewide elected officials, legislators, judges (other than pro tem judges who do not otherwise serve on the bench), district attorneys, agency directors, and public university presidents and vice presidents.11Oregon Government Ethics Commission. Statements of Economic Interest

The SEI covers the preceding calendar year and asks for:

  • Officer and director positions held by the official or any household member, with a brief description of each business.
  • All names under which the official or household members do business.
  • Sources that produce 10 percent or more of the household’s total annual income.
  • Any beneficial ownership interest in real property within the geographic boundaries of the official’s agency, excluding the official’s primary residence.
  • Expenses over $50 received for conventions, missions, or trips, with the paying organization, event, and amount.
  • Any honoraria or items allowed under ORS 244.042 valued over $15.

The income threshold is relative, not fixed. A household earning $100,000 has to disclose any source contributing $10,000 or more.2Oregon State Legislature. Oregon Revised Statutes Chapter 244 – Government Ethics

Missing the April 15 deadline triggers an automatic penalty with no complaint process required. Penalties accrue at $10 per day for the first 14 days, then jump to $50 per day until the report is filed or the total reaches the $5,000 statutory cap.12Oregon Government Ethics Commission. Statement of Economic Interest Filer Guide A late filing is treated as automatic evidence of a violation.1Oregon Public Law. Oregon Revised Statutes 244.350 – Civil Penalties, Letter of Reprimand or Explanation

After You Leave Office

ORS 244.045 places time-limited restrictions on what former public officials can do once they leave government. The specifics depend on the position, with cooling-off periods of one or two years.13Oregon Public Law. Oregon Revised Statutes 244.045 – Regulation of Subsequent Employment of Public Officials Former members of the Legislative Assembly may not receive money or other consideration for lobbying for one year after leaving office.

Former heads of regulatory agencies, including the Public Utility Commissioner, the Director of Consumer and Business Services, the Oregon Liquor and Cannabis Commission Administrator, and the Director of the Oregon State Lottery, face a two-tier restriction. For one year they cannot work for or receive financial gain from a private employer in the industry they regulated. For two years they cannot lobby or appear before their former agency, attempt to influence it, or disclose confidential information gained in service.

Former State Treasurers and Deputy State Treasurers face a one-year ban targeted at the investment relationships of the office. They cannot accept employment from private entities that received at least $50,000 in investment funds during a single year of the official’s term, or from entities that negotiated or were awarded contracts worth $25,000 or more in a single year. They also cannot lobby for investment institutions or appear before the Treasurer’s office or Oregon Investment Council as a representative of such entities.13Oregon Public Law. Oregon Revised Statutes 244.045 – Regulation of Subsequent Employment of Public Officials

Deputy and Assistant Attorneys General face a two-year ban on lobbying or appearing before any agency they represented at the Department of Justice. Department of State Police members who supervised tribal gaming or lottery programs cannot accept gaming-related employment from the Oregon State Lottery, any Native American tribe, or private gaming vendors for one year after leaving.

Penalties

The OGEC’s civil penalty authority is tiered by severity and type:

  • Up to $5,000 for a general violation of ORS Chapter 244 or resolutions adopted under it.
  • Up to $10,000 for willfully violating the prohibition on using office for financial gain under ORS 244.040.
  • Up to $25,000 for violating the post-employment restrictions of ORS 244.045.
  • $10 per day for the first 14 days a Statement of Economic Interest is late, then $50 per day, up to $5,000.

1Oregon Public Law. Oregon Revised Statutes 244.350 – Civil Penalties, Letter of Reprimand or Explanation The commission can also issue a letter of reprimand or explanation in place of or alongside a civil penalty, an outcome more common for first-time or minor violations where the facts suggest the official acted without understanding the rules. Officials are personally liable for any civil penalty, and the public body they serve cannot pay the fine for them.

What Happens When a Complaint Is Filed

Anyone may initiate an ethics investigation by filing a signed, written complaint with the OGEC. The commission can also open cases on its own motion.14Oregon Government Ethics Commission. How to File a Complaint A preliminary review follows, which must be completed within 60 days, or 135 days for lobbying-related matters. This phase is confidential.15Oregon Government Ethics Commission. Cases and Complaints

If the preliminary review finds enough basis to proceed, the commission has 180 days to investigate. Staff may seek additional information and issue subpoenas for documents and oral testimony.15Oregon Government Ethics Commission. Cases and Complaints If the commission finds by a preponderance of the evidence that a violation occurred, it may move the case to a contested case hearing. In practice, OGEC staff typically draft a proposed stipulated order to settle the case, and many officials sign rather than go to a hearing. An official can also elect to move the case to Marion County Circuit Court.14Oregon Government Ethics Commission. How to File a Complaint