Ex-Gov. Kitzhaber agrees to $20,000 ethics fine

PORTLAND, Ore. (AP) – Former Oregon Gov. John Kitzhaber has agreed to pay a $20,000 penalty to settle alleged violations of state ethics law.

The Oregon Government Ethics Commission meets Friday in Salem, and the settlement is on its agenda. Kitzhaber signed it the proposed stipulated final order on March 15.

Kitzhaber resigned in early 2015 amid allegations that his fiancee, Cylvia Hayes of Bend, used their relationship to win contracts for her energy consulting business. No criminal charges were filed, but the ethics panel determined that Kitzhaber violated state rules against conflicts of interest.

Kitzhaber faced a maximum fine of $50,000, but cases are often negotiated for reduced settlements.

Kitzhaber was poised to settle the case for $1,000 in November, but commissioners decided the proposed fine was too low and rejected the deal.

The ethics panel voted unanimously last month to find Kitzhaber guilty of 10 ethics violations.

Kitzhaber has admitted allegations he failed to publicly declare a potential conflict of interest between his elected position and Hayes’ work as a clean energy consultant.

The seven-page stipulated final order says Kitzhaber violated ethics law “by providing Ms. Hayes with the opportunities to shape the policies of his administration and providing access to the staff and resources of the office … allowed her to advance the work for which she and her business, 3E Strategies was being paid.”

But it also notes that Kitzhaber “denies that he intentionally used his position as governor to advance the financial interests” of Hayes or her consulting firm. The ethics panel said the commission did not find it was intentional but said intent is not necessary to prove a violation of ethics law.

Another agenda item before the panel is a stipulated final order involving former Redmond city councilor Anne Graham.

A dispute arose when in 2015 she emailed city officials, objecting to the design of a new home being build near her own, saying she believed it would violate city policy and hurt her home’s value. The staff then required the builder to make modifications.

Graham did not disclose a conflict of interest before those steps, investigators said. Graham resigned from the council last year, saying it was due to disagreements with the mayor and not the pending ethics investigation.

Rather than a civil penalty, Graham agrees in the stipulated order to receive a “letter of education” to settle the matter.