East Coast Law Firms Fuel Oregon Democrats' Campaign Coffers

In a notable development in Oregon's political landscape, Dan Rayfield and Elizabeth Steiner, Democratic nominees for attorney general and treasurer respectively, have received substantial campaign contributions from out-of-state law firms. These donations, primarily from East Coast-based firms, have raised questions about transparency and potential conflicts of interest in the state's political process.

Dan Rayfield, the Democratic nominee for attorney general, has received over $170,000 from these firms, while Elizabeth Steiner, running for treasurer, has collected more than $40,000. These contributions account for approximately 23% of Rayfield's and 10% of Steiner's campaign funds raised in 2024.

The law firms in question, including New York-based Labaton Keller Sucharow and Delaware-based Grant & Eisenhofer, specialize in class-action lawsuits. Oregon's unique position to file such suits stems from its substantial pension fund, valued at $94.5 billion. This financial asset makes the state an attractive plaintiff in cases involving corporate misconduct that affects stock values and retirees' investments.

It's worth noting that the Oregon Public Employees Retirement System (PERS), established in 1946, manages one of the largest pension funds in the United States. The Oregon State Treasury, responsible for overseeing approximately $118 billion in public funds as of 2024, plays a crucial role in these financial matters.

Both candidates have previously addressed the issue of accepting funds from out-of-state firms. Rayfield, who served as Speaker in the Oregon House, stated in 2020 that such contributions "smell real funny." However, he now accepts these donations, emphasizing the need for transparency in the decision-making process for hiring law firms.

Steiner, a state senator who co-chaired the Legislature's Ways and Means Committee, has expressed confidence in her ability to avoid favoritism towards donors. She believes accepting contributions is not problematic if proper recusal measures are in place for significant decisions.

"I don't think taking money from securities litigators or pretty much anybody else is a problem, as long as you're very careful about recusing yourself from significant decisions about who gets which business."

The Oregon Department of Justice, established in 1891, and the State Treasury have the authority to select law firms for representing the state in class-action suits. Unlike some states, Oregon currently lacks legislation preventing public officials from accepting campaign funds from potential contractors.

However, this practice may soon change. A new campaign finance reform law, passed with support from both Rayfield and Steiner, will limit individual and corporate contributions to $3,300 per election cycle for statewide candidates starting in 2027. This reform aligns with Oregon's history of progressive electoral measures, such as being one of the first states to implement vote-by-mail for all elections in 2000.

As the election approaches, both Democratic candidates have outraised their Republican counterparts. The outcome of these races will have significant implications for Oregon's legal and financial landscape, given the state's unique position in class-action lawsuits and its substantial public funds management responsibilities.