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Ousted OLCC head says Oregon Gov. Kotek fired him for a campaign donor

The Oregon Liquor and Cannabis Commission's headquarters located in Milwaukie.
Kristian Foden-Vencil
/
OPB
The Oregon Liquor and Cannabis Commission's headquarters located in Milwaukie.

Gov. Tina Kotek has previously denied the claim that she fired former OLCC Director Steve Marks earlier this year at the behest of a controversial cannabis entrepreneur.

The former head of the Oregon Liquor and Cannabis Commission says Gov. Tina Kotek fired him earlier this year at the behest of a controversial cannabis entrepreneur.

Now Steve Marks has served notice he might sue Kotek and the state for wrongful termination, defamation and other claims.

The former longtime state official filed a tort claim notice last week, the first step toward filing suit against the state government. The document alleges with little evidence that Kotek decided to fire Marks in late January because he鈥檇 run afoul of Rosa Cazares, the co-owner of the La Mota chain of cannabis dispensaries who in recent years became a prominent donor to Kotek and other top Democrats.

Kotek had not responded to the document, , as of Monday morning. She has previously denied her decision to fire Marks had anything to do with Cazares.

The possible lawsuit marks the latest turn in a series of events that claimed the political career of former Secretary of State Shemia Fagan. Fagan , after news emerged she鈥檇 accepted a with Cazares and her partner, Aaron Mitchell, even as the secretary of state鈥檚 office was auditing state cannabis regulations.

Marks鈥 notice of a possible lawsuit makes the case that he first attracted Cazares鈥 ire in 2018, when the OLCC cited one of her companies for mishandling nearly 150 pounds of cannabis. He argues that Cazares and Mitchell began making major donations to Democrats as a way to steer state cannabis policy in their favor. Together, the pair has spent hundreds of thousands of dollars supporting political campaigns since 2019.

鈥淲hat Cazares鈥 largesse purchased was the leverage to have Marks pushed out of office when his work concerning Oregon鈥檚 cannabis industry stood in her way,鈥 the notice says. 鈥淚n short, because Marks supported and carried out regulations that Cazares saw as onerous, she bought his ouster through financial graft.鈥

The document offers no proof connecting his firing to Kotek鈥檚 with Cazares and Mitchell, who sponsored fundraising events for the candidate as she ran a hotly contested race for governor last year. Marks did not return a call seeking comment on Monday and his attorney, William Gary, said in an email he would allow the document to speak for itself.

Questioned about her decision to fire Marks this year, the governor has been vague.

鈥淒irector Marks I think had been there for almost 10 years. It was time for a change,鈥 Kotek said in May when OPB asked about the decision. 鈥淭here was no relation to La Mota.鈥

Kotek鈥檚 staff informed Marks in late January that the governor was requesting his resignation. That was well after Kotek had alerted some other agency directors they would not be welcome in her administration. The heads of both the Oregon Lottery and Office of Emergency Management, for instance, were informed in December they鈥檇 be let go, the .

In his notice of a lawsuit, Marks says Kotek never offered any reason for requesting his resignation, but that 鈥渉e believed that Governor Kotek should be allowed to select her own team of key managers and he agreed to step down.鈥

Marks鈥 resignation was official as of Feb. 13. By that point, the OLCC was that involved Marks and other top officials reserving bottles of rare whiskeys for their own purchase. Kotek has said she was not aware of that practice at the time she decided to fire Marks.

鈥淭he situation on 鈥榖ourbongate鈥 I think validates my concerns about his leadership,鈥 Kotek said in May.

But Marks sees Kotek鈥檚 admission that the bourbon scandal had nothing to do with her decision as telling.

鈥淚t is evident that Governor Kotek pushed Marks out of office because Cazares made it known 鈥 either directly or through then-Secretary Fagan 鈥 that she wanted him gone and had paid the financial cost to see those plans bear fruit.鈥

Copyright 2023 Oregon Public Broadcasting. To see more, visit .

Dirk VanderHart is JPR's Salem correspondent reporting from the Oregon State Capitol. His reporting is funded through a collaboration among public radio stations in Oregon and Washington that includes JPR.