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Common Sense For Oregon Sues State To Protect Taxpayers From Self-dealing
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Teresa Lucas
(503) 480-0523
For Immediate Release
December 29, 2009
Common Sense For Oregon files lawsuit against the State of Oregon to uphold Oregon Constitution
Salem, Ore—Common Sense For Oregon filed a lawsuit in Marion County Circuit Court in Salem today. The suit is being filed against the State of Oregon, the Department of Human Services, Director of the Oregon Department of Human Services Dr. Bruce Goldberg, and Deputy Director of the Oregon Department of Human Services Margaret Carter for violating the Oregon Constitution’s ban on legislative self-dealing.
Article IV, Section 30 of the Oregon Constitution prohibits legislators from taking a “civil office of profit” created by the legislature during their term of office. This section was identified to protect Oregon citizens from a scenario where a state legislator creates a lucrative position which they then fill themselves in a self-dealing conflict of interest. Common Sense For Oregon says that is exactly what happened with House Bill 2009 and Margaret Carter.
As a member of the 2009 Legislative Assembly then State Senator Margaret Carter played an intricate role as co-chair of the Joint Ways and Means Committee which helped pass House Bill 2009, creating the new position that Margaret Carter then reportedly lobbied to acquire.
“We cannot have state legislators creating lucrative jobs with large pay increases for themselves, it violates the public’s trust and the Oregon Constitution,” said Ross Day, Executive Director of Common Sense For Oregon and the attorney handling this case. “This case is about protecting the integrity of Oregon’s government and the Oregon Constitution.”
Common Sense For Oregon is an Oregon non-profit, non-partisan organization dedicated to promoting common sense solutions to the issues important to Oregonians, and protecting Oregon’s cherished initiative and referendum system.
Group files voter rights lawsuit against city
City took extra steps to make sure they acted properly, officials say
By: Amanda Newman
December 17, 2009
After rejecting four initiative petition proposals submitted by Hank Grum, the city of Newberg is being called on to answer for its actions by an Oregon advocacy group that filed suit against the city today (Thursday) on behalf of Grum.
The lawsuit, filed in Yamhill County Circuit Court by Common Sense for Oregon, alleges the city falsely dismissed the prospective petitions submitted to city elections officials.
Newberg elections officer Dawn Wilson said the petitions were “absolutely not” falsely dismissed, adding, “We consulted outside legal counsel.”
She said Thursday afternoon the city had just received a copy of the complaint and forwarded it to attorney Tom Sponsler of Beery, Elsner & Hammond LLP.
“Currently, I can tell you that there’s nothing new or surprising in the complaint,” Wilson wrote in an e-mail. Until Sponsler has reviewed the lawsuit and discussed it with city attorney Terry Mahr, the city will not comment further.
Grum sought legal counsel after the city rejected his fourth petition proposal. Each of the petitions proposed a referendum system for new or increased city taxes and fees.
“The city of Newberg has done everything possible to deny Mr. Grum the rights guaranteed by the Oregon Constitution,” Ross Day, executive director of Common Sense For Oregon and the attorney representing Grum, said in a press release. “We will see to it that Mr. Grum’s rights are protected.”
Grum’s proposed amendment, the “Tax and Fee Responsibility Amendment,” would allow the city or the citizens of Newberg to refer tax or fee increases to the citizens for a vote. When the city raises new taxes or fees, citizens can currently submit a referendum petition, but these petitions have been routinely denied as of late, Common Sense For Oregon alleged in the release.
“In times like these, where the government keeps spending even though private citizens are still suffering in this recession, Mr. Grum’s proposed initiative is sorely needed,” Day said. “One cannot help but wonder if Mr. Grum’s proposed initiative is being rejected for political, and not legal, reasons.”
Grum’s first petition proposal, filed in September, was rejected because it violated the one-subject rule in the Oregon Constitution and did not qualify as municipal legislation, Wilson said at the time. Subsequent proposals covered the same material, with minor changes, and were similarly rejected. Grum was joined by two other Newberg petitioners on the most recent proposal.
Common Sense For Oregon officials say the agency is a nonprofit, nonpartisan organization that works to protect Oregon’s initiative and referendum system.
October 2009 Golden Fleece Award Winner
Golden Fleece Award, October 2009 – Margaret Carter and the Dept. of Human Services
During the 2009 legislative session, former state senator Margaret Carter served as co-chair on the Joint Ways and Means committee which approved a bill that appropriated funds through new legislation to the Dept. of Human Services in the 2009 Legislative Session. The measure—HB 2009—authorized the creation of addition deputy director positions. Margaret Carter was hired as the Deputy Director for Human Services Programs.
As a state senator, Carter earned $21,612 per year. In her new position, Carter will be making $121,872, fully $100,000 more than she made as a state senator.
Carter’s employment in this new, lucrative position was assured. First, Carter lobbied the Director of the Department of Human Services for the position. It is not entirely clear when Carter started lobbying for the position—before or after HB 2009 became law—but it is clear that Carter wanted the $100,000 pay raise. Second, Carter lobbied the Governor’s office for the position.
Finally, unlike most candidate recruitment efforts that interview numerous candidates for an open position (especially a position with the responsibilities as the Deputy Director of Human Services Programs), the Department of Human Services only interviewed Carter for the position, virtually guaranteeing her employment as the new Deputy Director.
Even The Oregonian reported in August that Carter talked with both the Director of the Department of Human Services and the Governor’s office about the position. Carter’s lucrative position was created by the 2009 Legislature by House Bill 2009. Legislative records show that Carter’s committee worked on the measure.
In addition to the ethically questionable circumstances surrounding Carter’s employment, there are likely legal issues as well. Article IV, Section 30 of the Oregon Constitution prohibits legislators from filling “office(s) of profit” that the legislators themselves created during the legislative session. This constitutional provision is intended to avoid the circumstance where a legislator trades her vote in return for a lucrative job in an agency in which the legislator exercises control. In short, this constitutional provision is intended to prohibit exactly the circumstances surrounding Carter’s employment.
Article IV, Section 30 of the Oregon Constitution:
No Senator or Representative shall…be appointed to any civil office of profit which shall have been created during such term [i.e. created during the time for which the Legislator was elected].
A civil office of profit is any office that is continuing, prescribed by law, and invested with some powers of sovereignty. Wells v. State of Indiana, ex. rel. Peden, 175 Ind. 380, (1911). Deputy director positions are by definition a “civil office of profit”. Id. at 384-385.
House Bill 2009, passed by the 2009 Legislature, created the position of Deputy Director of Human Services.
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Listen to the latest radio ad by clicking here.
The Golden Fleece Award will be awarded on a regular basis to the person, politician or government agency responsible for the most notorious—and wasteful—example of spending highlighted in the previous month.
Former Senator Carter gets Golden Fleece Award
By Common Sense for Oregon
- Hear Golden Fleece Radio ad by clicking here.
- See News Response here
During the 2009 legislative session, former state senator Margaret Carter served as co-chair on the Joint Ways and Means committee which approved a bill that appropriated funds through new legislation to the Dept. of Human Services in the 2009 Legislative Session. The measure—HB 2009—authorized the creation of addition deputy director positions. Margaret Carter was hired as the Deputy Director for Human Services Programs.
As a state senator, Carter earned $21,612 per year. In her new position, Carter will be making $121,872, fully $100,000 more than she made as a state senator.
Finally, unlike most candidate recruitment efforts that interview numerous candidates for an open position (especially a position with the responsibilities as the Deputy Director of Human Services Programs), the Department of Human Services only interviewed Carter for the position, virtually guaranteeing her employment as the new Deputy Director.
Even The Oregonian reported in August that Carter talked with both the Director of the Department of Human Services and the Governor’s office about the position. Carter’s lucrative position was created by the 2009 Legislature by House Bill 2009. Legislative records show that Carter’s committee worked on the measure.
In addition to the ethically questionable circumstances surrounding Carter’s employment, there are likely legal issues as well. Article IV, Section 30 of the Oregon Constitution prohibits legislators from filling “office(s) of profit” that the legislators themselves created during the legislative session. This constitutional provision is intended to avoid the circumstance where a legislator trades her vote in return for a lucrative job in an agency in which the legislator exercises control. In short, this constitutional provision is intended to prohibit exactly the circumstances surrounding Carter’s employment.
Article IV, Section 30 of the Oregon Constitution:
No Senator or Representative shall…be appointed to any civil office of profit which shall have been created during such term [i.e. created during the time for which the Legislator was elected].
A civil office of profit is any office that is continuing, prescribed by law, and invested with some powers of sovereignty. Wells v. State of Indiana, ex. rel. Peden, 175 Ind. 380, (1911). Deputy director positions are by definition a “civil office of profit”. Id. at 384-385.
House Bill 2009, passed by the 2009 Legislature, created the position of Deputy Director of Human Services.
—
Listen to the latest radio ad by clicking here.
The Golden Fleece Award will be awarded on a regular basis to the person, politician or government agency responsible for the most notorious—and wasteful—example of spending highlighted in the previous month.
Common Sense For Oregon has set up an anonymous, toll-free tip line for citizens to call and nominate examples of government waste. The telephone number is 1-887-UFLEECE. Citizens can also visit www.commonsensefororegon.org and leave an anonymous message via our form on that website.
Group: former state senator fleeced taxpayers
By Thom Jensen KATU News and KATU.com Staff
PORTLAND, Ore. – A taxpayer watchdog group said Monday that former state Sen. Margaret Carter used her position as co-chair on a Senate committee to get a job with a $100,000 pay raise.
Common Sense for Oregon’s Executive Director Ross Day said Carter violated the state’s Constitution by using her votes on the Senate Ways and Means Committee when she voted for HB 2009.
“This certainly is unconstitutional,” Day said. “What it (Constitution) says is that no legislator can fill an office of profit – which that is what this is – that was created during the term that the legislator served.” Day also added, “We will be filing a lawsuit later this week.”
The bill split the Department of Human Services and Day said it helped create Carter’s new position as a DHS deputy director, raising her annual pay from just over $21,000 to almost $122,000.
“You’ve got a legislator who not only did this, who lobbied for a hundred-thousand dollar a year increase, but then she turned around and was a key vote in raising taxes. I mean to me that just smells bad,” Day said.
According to a DHS spokesperson Carter could not be interviewed for this story because she was home sick.
A reporter visited Carter’s Portland home but could not reach her. After the attempt the same DHS spokesperson called the reporter and said she was at the doctor.
The spokesperson said DHS would not respond to questions about Carter’s position because allegations she violated the Constitution are “too bizarre.”
Common Sense for Oregon recently awarded Carter its “Golden Fleece Award” which the group said is given to a “person, politician or government agency responsible for the most notorious – and wasteful – example of spending … .”
The group also named DHS and the governor’s office in its Golden Fleece Award.
Day quoted an Oregonian article where the governor’s office and DHS admitted Carter lobbied them for her new job while she was still a state senator.
