Longtime Oregon lawmaker admits to ethics violation, but fails to disclose business client

For the second time in a year, state Rep. Greg Smith has conceded violating state law by not fully disclosing clients of his private consulting company.

Smith, a Republican from Heppner, has agreed to a letter of education from the Oregon Government Ethics Commission over the violation. That sanction is standard for the commission in matters concerning disclosures.

A commission investigation found that Smith didn’t report his company’s dealings with Morrow Development Corp., a small nonprofit based in Heppner.

READ IT: State ethics report

Such disclosures are required under state ethics laws as public officials annually file what is called a statement of economic interest. The forms, open to the public, generally reveal a public official’s sources of income, but not the amounts.

Smith signed a stipulated final order on Monday, Dec. 29, concerning Morrow Development. The ethics commission was scheduled to approve the order on Friday.

Last year, Smith conceded to the ethics commission that he failed to report his company’s business with another client – Harney County. In March 2024, he received a letter of education from the commission over that ethical failing.

Smith didn’t respond to a request for comment about his latest concession.

State Rep. Lucetta Elmer, the Oregon House Republican leader, also didn’t respond to a request for comment. Smith is a leader in her caucus and holds key posts on the legislative Joint Ways and Means Committee, which has significant say over how state money is spent.

In a separate action, the ethics commission last month found that Smith illegally used his job as executive director of the Columbia Development Authority to boost his own pay by $69,000 a year to $195,000. The pay raise was later rescinded but that ethics matter remains open. Smith can negotiate a settlement or demand a hearing to contest the findings.

The ethics commission continues to investigate Smith for allegations he took pay from the development authority for hours he spent on his own consulting work or legislative duties. The development authority in Boardman was formed to turn a former military depot near Hermiston into industrial sites.

In its most recent action, the ethics commission said Smith didn’t originally disclose his ties to Morrow Development in filings he made in 2024 and 2025. He belatedly did so last July – after a Boardman man complained to the ethics commission about the omission.

Morrow Development pays Gregory Smith & Company $100,000 a year to run its loan program. The nonprofit lost money in 2024, with virtually all of its income of $103,929 going to pay Smith’s company, according to its tax return.

Smith set up his consulting company about the same time he went into the Oregon Legislature in 2001. Through that company, he has won contracts from public agencies throughout rural Oregon. In some instances, Smith has used his legislative position to steer money to his clients.

— Les Zaitz, Salem Reporter, [email protected]