Is Oregon’s AG Thwarting Ethics Reform Legislation?

Doug Whitsett

It has now been more than a year since former Oregon Governor John Kitzhaber resigned in disgrace. He quit a few weeks into his historic fourth term amid federal investigations and allegations of cronyism and corruption.

A series of bills was proposed during the 2015 regular legislative session to try and address some of the major issues that emerged through this unprecedented crisis of confidence in our state government. The only bills that passed were introduced by Governor Brown and related to minor changes in ethics laws. They did not address more accountability and transparency from our various state agencies.

In a previous newsletter, I discussed the myriad problems associated with the state’s controversial Business Energy Tax Credit program that was being run through the Oregon Department of Energy (ODOE). Based on the information brought forward by two whistleblowers, my office was among those who called for a criminal investigation into the circumstances surrounding the questionable actions of that Agency and the Department of Revenue related to the issuance of those tax credits. The Oregonian newspaper's editorial board agreed that a criminal investigation was warranted.

ODOE claimed that some of their more contentious actions were the result of legal advice they had received from the Oregon Department of Justice (DOJ). When asked to produce that advice, ODOE refused to disclose it, claiming the information is protected under attorney-client privilege. 

Senate Bill 1579 represents my proposed solution to that blatant lack of transparency, as well as to other agencies exhibiting similar behavior, such as the Oregon Water Resources Department. I and my staff, as well as Senate President Peter Courtney’s staff, worked with Legislative Counsel over a period of about four months in carefully drafting the bill.

This guest editorial in the Oregonian spells out the reasons why I believe SB 1579’s passage is needed to bring about greater transparency and accountability from out state government. 

public hearing was held on SB 1579 last Tuesday in the Senate Workforce and General Government Committee. I testified beside Senate President Peter Courtney (D-Salem) and a representative from the Oregon Farm Bureau. Senator Courtney’s testimony was based on his status as the bill’s chief co-sponsor.

SB 1579 Hearing


Legislative Counsel carefully drafted SB 1579 to allow for disclosure of a condensation or summary of legal advice that would not waive attorney-client confidentiality. The bill would also require a circuit court judge to decide disputes regarding what is or is not privileged communication, as well as whether the summary is accurate and comprehensive.

Attorneys from the DOJ testified in enthusiastic opposition to SB 1579. In apparent contradiction to existing statute, they based most of their dissent on claims the bill would require disclosure that would waive attorney-client privilege. DOJ further claimed the bill would potentially cause the state to incur significant expenses. Those cost are allegedly related to verifying the summaries of legal advice they provide are, in fact, comprehensive and accurate.

Even though the bill had been posted on the legislative website for well more than a week, it is my understanding that no representative from the DOJ contacted me, my staff, the Senate President’s staff or Legislative Counsel to discuss any of their “concerns” prior to the public hearing. Unfortunately, DOJ staff continues to employ this specious behavior because it works for them. The bill died in committee primarily due to their testimony.

The Legislative Counsel attorney who drafted SB 1579 strongly believes the bill would not jeopardize attorney-client confidentiality. Current Oregon law appears to support her legal opinion.

ORS 192.423 provides, in part, that when a public record is subject to disclosure, in lieu of making a public record available for inspection by providing a copy of the record, the public body may prepare and release a condensation from the record of the significant facts that are not otherwise exempt from disclosure. The law states unambiguously that the release of the condensation to the public does not waive attorney-client privilege.

The DOJ argument regarding cost appears specious at best. A circuit court judge would determine whether the required summary or condensations was complete and accurate, while maintaining strict confidentiality.

A public hearing was held the same afternoon in an adjacent hearing room for House Bill 4138. That bill, sponsored by Rep. Gail Whitsett (R-Klamath Falls), would authorize the Legislative Assembly to request appointment of independent counsel by joint resolution. 

HB 4138 Hearing


The introduction of this bill was also motivated by the myriad scandals that plagued the Kitzhaber administration in its final months. Rep. Whitsett introduced a very similar bill for consideration in the 2015 session. It never made it out of committee.

We continue to believe the bill is necessary, due in part to the seeming reluctance of Attorney General Ellen Rosenblum to investigate Kitzhaber after his scandals first became public in late 2014. Federal authorities eventually assumed control of the investigation after Kitzhaber resigned his position.

Rep. Whitsett testified on behalf of HB 4138 during a meeting of the House Consumer Protection and Government Effectiveness Committee, along with House Republican Leader Rep. Mike McLane (R-Powell Butte). Just as DOJ had done minutes before in the nearby hearing room, their attorneys once again testified in strident opposition.

No one from DOJ contacted Rep. Whitsett, her staff or Legislative Counsel prior to the hearing despite the fact that the same issue had been addressed by a nearly identical bill in the previous session. The only changes in this year’s version of the bill were drafted by Legislative Counsel to expressly address concerns expressed by DOJ toward last year’s bill.  

HB 4138 was carefully drafted by our Chief Legislative Counsel attorney. He told me that in his opinion, the testimony provided by DOJ was factually inaccurate on virtually every point. We have requested an informational hearing on the bill to provide Legislative Counsel the opportunity to rebut the DOJ testimony that attempted to publicly trash his work. We understand that hearing is scheduled to occur this week.

DOJ’s tactics last week were remarkably similar to the ones the department used last year regarding a Standing Modernization work group facilitated through the Oregon Law Commission.

The work group became necessary due to the Attorney General’s (AG) refusal to mount a defense to a challenge of a statewide ballot measure passed by voters in 2004. Some of the state’s top legal minds met in good faith for months to devise a legal solution to the problem presented by the AG’s refusal to participate in the defense of the Oregon Constitution.  I was a member of that work group, which was chaired by former Attorney General Hardy Meyers.

Although a workable solution seemed to be achievable, the AG’s office appeared to work behind the scene to help sway members of the panel to oppose those efforts. It also appeared that several of the panel members may have been selected for their views opposing the proposed solution.

Perhaps it is worth reviewing how the current AG first came into her position.

Rosenblum was appointed by Kitzhaber following the resignation of her predecessor, John Kroger. Her predecessor had resigned under mysterious circumstances, citing health concerns, before being selected President of Reed College in Portland. Although she has since been elected to the position, Ellen Rosenblum may quite literally owe her office to John Kitzhaber.

From my perspective, Oregon needs an AG who will prioritize the representation of the people over the representation of state agencies. We need an AG who will equally apply the law and insist on legal accuracy, honesty and fair treatment by her staff. Further, we need an AG who will refrain from the selective application of Oregon law. My hope is for Oregonians to elect an AG with those attributes in the November general election.


Please remember--if we do not stand up for rural Oregon, no one will.


Best Regards,
 
Doug

Senate District 28

 

Email: Sen.DougWhitsett@state.or.us I Phone: 503-986-1728
Address: 900 Court St NE, S-311, Salem, OR 97301
Website: http://www.oregonlegislature.gov/whitsett

subscribe here