SALEM -- Impact Oregon, a nonprofit controlled by Senate Republican leaders, surged into action this month to oppose increasing Oregon's tobacco age.

The group didn't publicly disclose that its treasurer, Paul Rainey, has close ties with a tobacco lobbyist: Justen Rainey, his twin brother, who works for cigarette giant Reynolds American.

That a nonprofit Paul Rainey helps to run didn't reveal its link to a tobacco industry lobbyist while aligning with pro-tobacco priorities presents "a clear conflict of interest," said Terry Cooper, professor at the University of Southern California's Sol Price School of Public Policy.

Paul Rainey "has an interest in doing things that are good for his brother, but he also is expected to exercise independent judgment," Cooper said. "The fact that he's serving the interest of his brother and doing it covertly means that he's got a conflict of interest and he's not disclosing that."

Paul Rainey, who in his day job serves as chief of staff for the Senate Republican Caucus, said he did nothing wrong.

"I have a brother that also works in politics," he said. "I don't see the conflict."

Impact Oregon is a tax-exempt nonprofit run by Senate Republican Leader Ted Ferrioli, R-John Day, and Sen. Tim Knopp, R-Bend, according to incorporation records. When The Oregonian/OregonLive first reported that Ferrioli's campaign legally funneled $6,500 to Impact Oregon, he described the group's work as "putting out facts without necessarily advocacy."

The nonprofit had been dormant for the better part of a year. But it recently launched a Facebook ad campaign targeting Sen. Sara Gelser, a Corvallis Democrat who holds a coveted swing district.

"Sara Gelser has no problem with you paying taxes or fighting wars, but you'll need her permission to buy cigarettes!?" the ad said. "Tell Sara Gelser to respect personal choice and vote no on #SB754."

The bill, which would increase Oregon's tobacco sales and possession age to 21, passed the Senate 19-8, with Gelser voting for it.

Domain name records show that Impact Oregon's website is registered to Paul Rainey. Nowhere on the website is Rainey's connection to a tobacco industry lobbyist mentioned.

Cooper, who holds a doctorate in ethics, said Rainey should have handled the situation with his brother in one of two ways: "Disclose or divest."

"One way that we handle conflicts of interest is by making them known," Cooper said. "That's where the ethical problem lies. People can't take into account his brother's interest, which he's attempting to serve and protect, unless they know his brother is a tobacco lobbyist."

Paul Rainey said his brother had no influence on Impact Oregon's ad campaign against Gelser, and that he keeps an arm's distance from tobacco-related policy because of his brother's work. Justen Rainey, who lobbies on an array of policy issues, could not be reached for comment.

When asked to share Impact Oregon's financial records with The Oregonian/OregonLive, Paul Rainey declined. By law, Impact Oregon can lobby and engage in political campaigns without saying where it gets its money.

"We have a range of donors besides the tobacco industry," Rainey said. The group's next campaign may focus on energy issues, he said.

To earn its 501(c)4 tax-exempt status as a "social welfare" organization, Impact Oregon must operate to further the "common good," according to IRS rules. The agency notes that social welfare "is inherently an abstruse concept that continues to defy precise definition."

Gelser, the Corvallis Democrat targeted by Impact Oregon's ad, said she finds it "interesting" that a member of the group is tied to a tobacco lobbyist. But she doesn't blame them for running ads against her.

"That's just part of the game," she said.

-- Gordon R. Friedman

GFriedman@Oregonian; 503-221-8209