Beer industry lobbyist might have broken Oregon spending laws

Modern Brewery Age, Jan 24, 2000

Associated Press-- A lobbyist for the beer and wine industry in Oregon has reportedly spent thousands of dollars on travel for politicians' spouses, possibly violating an Oregon state ethics law that limits gifts to public officials' family members to $100 a year. According to expenditure reports, lobbyist Paul Romain reported spending $12,944.09 for travel, lodging, food and golf on behalf of seven legislators and their spouses, who attended meetings of the Oregon Beer and Wine Distributors Association in Palm Springs, Calif., in 1994 and 1996 and in Hawaii in 1998.

Interviews with Romain and lawmakers indicate the spouses alone received about $5,500 worth of the free food, airfare and lodging.

The possible ethics law violations were among thousands of lobbyist expenditure reports reviewed by The Register-Guard newspaper in Eugene.

The reports covered a period from 1994 to mid-1999.

"I know a lot of folks who end up doing this stuff and just don't report it," Romain said. "We report it. We're not trying to hide anything."

Oregon's ethics laws were enacted in 1974 to ensure that politicians, government employees and their relatives do not profit in unethical ways from their public positions.

These laws, which include limits on what lobbyists can spend and officials can receive, permit lobbyists to spend unlimited amounts on food and beverages if the items are consumed in the lobbyist's presence.

The laws also permit lobbyists to pay as much as they like for travel and lodging on behalf of politicians, provided they are appearing in an official capacity. However, lobbyist-furnished travel for spouses would be considered gifts, and would therefore have to be limited to $100 per person.

"I can tell you right now that our position on this issue has always been of like mind and it's been steadfast. It's OK for the public officials. It's not for the spouses," said Patrick Hearn, the executive director of the standards and practices commission.

If found in violation, Romain and each legislator could be faced up to $1,000 per violation. The legislators also could be sanctioned for up to twice the value of any financial benefit their relatives improperly received.

Romain reported spending more than $100 for each of the seven spouses. The expenditures ranged from $245 for Sen. Gene Timms' spouse, Edna Timms, to travel to Palm Springs in 1996, to $1,565 paid for Sen. Neil Bryant's spouse, Mary Bryant, to accompany the senator to two beer and wine distributor meetings.

Besides Timms, R-Burns, and Bryant; R-Bend, Romain reported that his association treated Sens. Dave Nelson, R-Pendleton, Tom Hartung, R-Portland, Rep. Lane Shetterly, R-Dallas and former Sens. Paul Phillips and Ken Baker, both Republicans, and their spouses to free trips so they could speak at conventions. Most of the seven legislators held assignments on committees that controlled the flow of bills affecting beer and wine taxes and laws affecting alcohol consumption.

"We thought we were doing everything that was completely kosher. I guess his preliminary opinion is we weren't," Romain said. "We'll find out where it goes."

In 1991 the Oregon Court of Appeals upheld a ruling by the ethics commission that food, lodging and travel given to a public official's spouse constituted a gift which would mean the bond company should have limit the gratuity to $100 per spouse.