During the 2022 Legislative Session, the Legislature passed SB 1579 which directs the Oregon Business Development Department to develop and implement Economic Equity Investment Program to award grants to organizations that provide culturally responsive services to support economic stability, self-sufficiency, wealth building and economic equity among disadvantaged individuals, families, businesses and communities in Oregon.

An ethics complaint has been filed against Senator Akasha Lawrence Spence (D-Portland) by Gary Hughes and Gabriel Buehler both of Tigard. According to the complaint, "Lawrence Spence is the Founder and Principal of Fifth Element LLC. According to business filings with the Secretary of State, Fifth Element's primary business activity is "conscientious real estate development." Fifth Element's website provides more information about what that means with statements like, "We provide the vehicle for these small business owners to diversify their businesses and build wealth through commercial property ownership," "Helping small businesses achieve ownership is only the first step," and "fortifying small businesses through property ownership."

The complaint continues, "As we read SB 1579, under the Economic Equity Investment Program, taxpayer dollars will now be distributed to organizations to improve "economic equity." Section 2(3) defines measurements of "economic equity," the first being the ownership of real property. This is an explicit business activity of Fifth Element. It appears that Senator Lawrence Spence’s business, Fifth Element, would be eligible for grant money through the Economic Equity Investment Program and, if awarded, she would receive pecuniary benefits from the passage of SB 1579."

In a hearing before the Oregon Senate Committee on Conduct, Legislative Counsel weighed in, saying "we believe it is more likely than not that Senator Lawrence Spence violated ORS 244.120 and Senate Rule 3.33 by failing to declare a potential conflict of interest before voting on SB 1579. Lawrence Spence not only voted for the bill on the Senate Floor, but was a chief sponsor of the bill.

Through her attorney, Clifford S. Davidson with Portland-based law firm Snell & Wilmer, Senator Lawrence Spence responded to the committee. According to testimony, "Prior to voting, and when she voted, on SB 1579, Senator Lawrence Spence had no intention of applying for a grant created by SB 1579."

One staffer who is familiar with the case said, "I find it hard to imagine she wouldn't put in for the state money that her bill provided."

The Senate Committee on Conduct was deadlocked 2-2 on a motion that Senator Lawrence Spence violated ORS 244.120 and Senate Rule 3.33, and then voted to take no further action. The vote was a clean party-line split with Senators Chuck Thomsen (R-Hood River) and Floyd Prozanski (D-Eugene) voting yes and Senators Fred Girod (R-Stayton) and Kathleen Taylor (D-Portland) voting no.


--Staff Reports

Post Date: 2022-08-30 10:38:56

Last Update: 2022-08-30 11:53:41