Cannabis controversy: Oregon Secretary of State Shemia Fagan's consulting role draws attention

Oregon Secretary of State Shemia Fagan has raised concerns after reaching a consulting agreement with a subsidiary of the struggling cannabis dispensary chain, La Mota, whose owners are monitored by several state agencies.

Fagan's auditors are currently reviewing the Oregon Alcohol and Cannabis Commission's handling of the cannabis industry, but she recused herself from participating in the audit.

"Secretary Fagan withdrew from the OLCC audit on February 15 because she planned to begin a limited consulting contract with Verede Holding LLC (a subsidiary of La Mota),” spokesman Ben Morris said. . "The contract with [Veriede] began on February 20, 2023 and is for projects outside of Oregon."

However, her decision to work as a private consultant while serving as a civil servant raised eyebrows.

Although Oregon ethics laws allow public servants to take outside employment, Fagan's contract with Veriede Holding LLC, which is affiliated with La Mota, has led some to consider whether this represents a potential conflict of interest.

According to Willamette Week, Verede's contract with Fagan states that they "will adhere to guidelines for public servants," but with La Mota owners holding licenses for farms, operations wholesalers and dispensaries, some are concerned that Fagan's work with Verede may be problematic.

The Oregon Department of Revenue also filed more than $1.5 million in liens against the owners of the corporations, Rosa Cazares and Aaron Mitchell, for unpaid taxes, including more $592,000 in marijuana sales tax.

Also, Oregon Congressman Earl Blumenauer is pushing for the Small Business Tax Fairness Act, which seeks to change the IRS code to allow state-legal cannabis businesses to take advantage of federal tax deductions.

Photo: Courtesy of Justin Shen on Unsplash

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