December 2015
Basin Business
KLAMATH BASIN
Business
Thursday, Dec. 17, 2015, Herald and News
Artistic antiques
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Everybody’s Vintage — Page 3
Dow nt ow n shopping New seamstress shop opens — Page 5
Sky Lakes recruits new providers
— Page 6
End-of-year investment tips — Page 7
A publication of the Herald & News Chamber: www.klamath.org
New stores offer shoppers unique, unusual gifts, from cowboy memorabilia to antiques Gypsy Chix — Page 2
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Thursday, Dec. 17, 2015, Herald and News
Basin Business
Cowboy theme surrounds gifts at Gypsy Chix Story and photos by GERRY O’BRIEN H&N Editor
A couple of new stores recently added to the Klamath Falls downtown lineup are focused on repurposed items, but each with a different twist. Gypsy Chix is owned and operated by Cindy Boehner. The shop at 619 Main St., focuses on cowboy memorabilia. Boehner used to spend her time traveling the rodeo and horse competition circuits. “I would set up a little tack shop and travel around to rodeos and Western events for about six years.” She met her husband, Roger, in Reno, Nev., while she lived and worked in Bend. “We just decided that we needed to settle between the two and Klamath Falls was ideal. We love it here,” Boehner said. The shop started out adjacent to the Shasta View Animal Clinic off Ditchrider Road. “I was there about 3½ years, but really didn’t have much foot traffic. So I decided to relocated downtown last year.” The shop offers a variety of unique and unusual gifts, both new and used items such as repurposed jewelry, gift items and upcycled furniture, along with work by local artists, local honey and body lotions, soaps, candles and antiques. It’s a perfect stop for those looking for a more classic Christmas gift. “The majority of what I sell is upcycled furniture. I do custom repair and repainting. It was a sideline at first, but it’s really starting to take over and turn into my main item,” Boehner said. She also refurbishes a lot of old jewelry and makes new displays with it. See GYPSY, Page 4
Cover photo: Cindy Boehner poses with merchandise at her downtown store, Gypsy Chix. This page: Repurposed furniture and jewelry are some of the items shoppers will find at the store, which has an overall cowboy theme.
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Basin Business
Thursday, Dec. 17, 2015, Herald and News
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Everybody’s Vintage
More than just an antique store By GERRY O’BRIEN H&N Editor
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verybody’s Vintage is just that. While it is a store with unique gifts, collectibles, antiques and refinished furniture, it is more of a labor of love for proprietor Tom Jewell and a place for artists to display their work as well. The shop at 733 Main St. is in the former Drew’s Manstore and bootery. Drew’s dates back to 1918, when N.B. Drew opened for business. Today, the store — which is actually two stores with the middle wall removed — sports a wide range of collectible items from historic furniture from the Basin to authentic movie posters, LP records, watches and jewelry and table settings. “I’m always looking for things, unique, different, things you don’t normally find in Klamath Falls, special, hand-carved furniture, vintage baubles. We have Christmas ornaments on sale year round as that is a favorite.” The store is about 1,700 square feet and also has a basement with consignment items, such as refur-
bished items from Irish Dresser. Because many of the items are restored, or antique, they carry stories with them. For example, a back bar that was removed from Waldo’s on Main Street was nearly tossed out with the trash. The bar dates back to the Prohibition era and has hidden cabinets in it so that bottles of alcohol would not be on display. See VINTAGE, Page 7
H&N photos by Gerry O’Brien
Owner Tom Jewell is pictured above in Everybody’s Vintage, at 733 Main St., where he sells antiques, collectibles and refinished furniture, as well as local artwork and other unique items.
Mark Fay, M.D. Scott Stevens, M.D. Physician/ Surgeon of the Eye Physician/ Surgeon of the Eye
Edwin Tuhy, O.D. Optometrist
Jennifer Sparks, O.D. Optometrist
New Patients Welcome
2640 Biehn St. • 541.884.3148 • www.klamatheyecenter.com
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Thursday, Dec. 17, 2015, Herald and News
Basin Business
Riley named to national organization’s board WASHINGTON, D.C. — Betty Riley, executive director of the South Central Oregon Economic Development District in Klamath Falls, was elected to the National Association of Development Organizations (NADO) 2015 – 2016 board of directors on Tuesday, Oct. 27 at NADO’s Annual business meeting. The meeting was held in conjunction with the association’s 48th annual training conference in New Orleans. “We are honored to have Betty serve Riley on NADO’s board of directors. She brings a wealth of expertise, knowledge, and leadership on regional communities and economic development issues to the national level,” said Joe McKinney, NADO executive director. “Most importantly, Betty is focused on helping our nation’s local communities pursue comprehensive regional strategies for remaining economically competitive in today’s rapidly changing global environment.” NADO was founded in 1967 to provide training, information and representation for the regional development organizations throughout the United States. Today, NADO member organizations serve local
Gypsy The shop is open Tuesdays through Saturdays, from 10 a.m. to 5 p.m., but is staying open Monday for the holiday season. Call 530-260-8121 for more details.
Pictured at right are a few cowboy sculptures at Gypsy Chix. H&N photo
governments and the public within their regions through various programs focused on diversifying local economies, assisting businesses, creating jobs and providing social services. The NADO board of directors oversees the association’s budget and operations, and develops policy on issues affecting regional development organizations. NADO’s board represents member organizations from a broad section of the United States, including the Eastern, Midwestern, Central, Southeastern, Southwestern and Western regions. For more information, contact Joe McKinney, NADO Executive Director, at 202-624-5947 or jmckinney@ nado.org.
About NADO: Building on nearly five decades of experience, the National Association of Development Organizations serves as the national voice of regional development organizations. The association is an advocate for federal community and economic development programs and policies that help local communities improve their local economy and quality of life. For more information about group and the research foundation, visit www. nado.org.
BUSINESS SNAPSHOTS Local computer services offered Klamath Complete Computer Services is a full-line computer repair shop located at 950 Klamath Ave. in Klamath Falls. The shop works on business and residential computer systems and business networking. The service may be new to Klamath Falls, but owner and operator Scott Tyner has been around the Basin for more than 15 years. He was the owner of another computer shop in town until six years ago. His work experience includes working in the National Parks at Crater Lake, Death Valley and Grand Canyon to improve customer service for one of the largest parks concessionaires. “We provide in-house and on-site computer service and repair at competitive rates,” Tyner said of his new business in a press release. “Generally, we’ll have your computer diagnosed for free the same business day, at which point we will personally call you to inform you of our findings,” Tyner said. “You will know exactly what needs done to your computer, and exactly what that solution will cost before we move past the free diagnosis. We will only forward upon your approval. “Once you approve the solution, we should have your computer finished within one business day if no parts are required. “Our goal in computer service and repair is to be thorough, responsive and clear, and to get your computer back into your hands as quickly as possible.” The shop handles virus and spyware removal, OS Installations, general tune-ups, hardware upgrades, and more. The company website is www.kccs.biz On Facebook: www.facebook.com/KlamathCompleteComputerServices/ Scott Tyner 950 Klamath Ave. Klamath Falls Business hours: Monday-Friday 8 a.m. to 5 p.m. Business’ phone number: (541) 887-2888
U-Haul lands at Chrome Wrench Auto Works U-Haul Company of Oregon announced that Chrome Wrench Auto Works has signed on as a U-Haul neighborhood dealer to serve Klamath Falls. Chrome Wrench Auto Works at 6831 S. Sixth St. will offer U-Haul trucks, towing equipment, support rental items and in-store pick-up for boxes. Hours of operation for U-Haul rentals are 8 a.m. to 6 p.m. Monday-Friday and 9 a.m. to 4 p.m. Saturday. After-hours drop-off is available for customer convenience. Reserve U-Haul products at this dealer location by calling (541) 205-0761. Chrome Wrench Auto Works partners Randall and Becky Banes are proud to team with the industry leader in do-it-yourself moving and selfstorage to better meet the demands of Klamath County.
Contact the Chamber Klamath County Chamber of Commerce
205 Riverside Drive, Suite A Klamath Falls, OR 97603 Office: 541-884-5193 Fax: 541-884-5195 Charles “Chip” Massie Executive Director cmassie@klamath.org
Heather Tramp: Marketing and Program Coordinator Email: heathert@klamath.org www.klamath.org www.facebook.com/Klamath Chamber twitter.com/AccessKlamath
Basin Business
Thursday, Dec. 17, 2015, Herald and News
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Seamstress shop open on Sixth benefits The
of
bouncing
Business offers alterations, repair, NFL logo aprons
Exercise like an astronaut?
Story and photos by GERRY O’BRIEN H&N Editor
If you’re looking for a handmade apron — and happen to be an NFL fan — Maria Seamstress Services might be just the shop for you. Maria Luz Hendrickson has been sewing handmade dresses and items since she was 5 years old. Now, semiretired at 71, she opened her shop at 2212 South Sixth St. last July. She plans a grand opening for the store — sandwiched between a nail salon, trophy shop and mattress store on the south side of the street — for early January. “I used to sew with an old foot-pump machine my grandmother had. She taught me everything,” she said. Today she has several industrialstrength sewing and hemming machines and sergers for all kinds of materials and repair jobs. After growing up in the Bay Area and managing several nursing homes, Maria and her husband, Dave, retired to Klamath Falls to be closer to family. Hendrickson has made wedding gowns, customdesigned dresses, aprons and pillows. She does alterations, clothes repair and tailoring. “I learned to cut out dress patterns using the newspaper for the pattern,” she said. She sewed clothing for her four children as they were growing up, sometimes working into the early morning hours. Now, with several grandchildren and great-grandchildren, she’s having fun with the craft. “I’m a big Oakland Raiders fan, but I like to do aprons with the NFL logos,” she said. She employs a part-time person when the shop gets busy. Her husband, Dave, runs the Goody Store in Downtown Klamath Falls. Seamstress store hours are Monday through Saturday, 9 a.m. to 4 p.m. Call 541-273-2142 for details, or email mariahendrickson65@hotmail.com.
Maria Luz Hendrickson, owner of Maria Seamstress Services, is pictured in her shop on South Sixth Street. At left, she holds up a handmade NFL logo apron.
Astronauts can lose as much as 15 percent of their bone and muscle mass from only 14 days at zero gravity. But how about the rest of us? Adults typically begin losing bone and muscle tissue by age 40. Yikes! How does NASA reverse this damage? By bouncing! Use a rebounder (mini-trampoline) or bounce in a bounce house. Here’s how it works. Bounce up and down and the force of gravity (G-force) on your body is increased. This stimulates the body to get stronger, to strengthen the skeleton and lay down more muscle tissue. Every cell in the body benefits from being stimulated by increased G-forces. You name it, blood, lymph, digestion, the brain. Boost your immune system and elevate your mood! From handling the bouncing forces, the brain and body must also learn to balance better, might be helpful when navigating the icy sidewalks this winter... How about cardio health? You bet. You will be breathing and sweating to keep your body bouncing up and down. Fresh oxygen will pump through your lungs and your blood will course through your veins. So add increased metabolism and weight loss. Want to see all of this in action? Bring your kids to our local indoor play center, Jump N Jax. You won’t have to convince your kids, to them it is just plain fun. They will still get the benefits, though. And while you are there, bounce a bit yourself. Look for extended open play hours and specials all through Christmas break. Submitted by Kim Twitchell Owner Jump N Jax 1111 Main St. jumpnjaxkfalls.com
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Basin Business
Thursday, Dec. 17, 2015, Herald and News
Sky Lakes recruits new providers Oregon jobless rate to local medical community declines
Several new physician specialists recruited to the local medical community by Sky Lakes Medical Center are now practicing in Klamath Falls. Among them are: ■ David M. Chadbourne, M.D., a board-certified urologist, is now practicing at Sky Lakes Urology Clinic, 2630 Campus Drive, 541-2742991. Dr. Chadbourne, practicing since 1988, relocated from Massachusetts to Klamath Falls. ■ Richard Johnson, D.O., a board-eligible hematologist/oncologist with extensive training in the psychosocial aspect of medicine, joined the Sky Lakes Cancer Treatment Center after completing a fellowship at the University of Missouri, Kansas City. ■ Daniel Pederson, D.O., is a primary care physician with an emphasis on sports medicine. Dr. Pederson earned his Family Medicine specialty at Cascades East Family Medicine Residency in Klamath Falls, and recently completed a fellowship in primary care sports medicine focusing on the non-surgical care of injuries and arthritis. He is practicing at Sky Lakes Adult Medicine Clinic, 3001 Daggett Ave., Suite 101, 541-274-8930. ■ Laurentiu Istrate, M.D., also is a primary care physician at Sky Lakes Adult Medicine Clinic. Dr. Istrate holds a medical doctor degree and a master’s degree in health administration. He earned his Family Medicine specialty at Cascade East Family Medicine residency in Klamath Falls. ■ Chin Hee Jun, M.D., is an internal medicine physician at Sky Lakes Adult Medicine Clinic. Dr. Jun relocated her medical practice from Staten Island, N.Y. ■ Faisal Saiful, M.D., is an interventional cardiologist practicing at Klamath Heart Clinic, 2614 Clover St., 541-884-6233. Dr. Saiful recently completed a fellowship in cardiology at New York City’s Mount Sinai Hospital. Sky Lakes, working with the local
By the Associated Press
PEDERSON
JOHNSON
ISTRATE
CHADBOURNE
medical community and others, continually strives to meet the healthcare needs of the community, and actively recruits skilled medical professionals to the area. Sky Lakes Medical Center is a community-owned, internationally accredited acute-care hospital. Licensed for 176 beds, Sky Lakes
offers a full range of inpatient and outpatient services, a home health agency, and a variety of primary care and specialty physician clinics. The Sky Lakes family also includes the award-winning Sky Lakes Cancer Treatment Center and Cascades East Family Medicine Residency.
’Tis the season to go back to work. Retail hiring exploded in November as statewide employment rose by 9,600 during the month, the Oregon Employment Department said Tuesday. The hiring spurt — the largest for a November in Oregon in 19 years — pushed the jobless rate down to 5.7 percent in November from 6 percent in October. The unemployment rate a year ago was 6.8 percent. (Klamath County hovers above 7 percent). Retailers, including clothing, sporting goods and department stores, accounted for 7,500 of the new jobs as they geared up for the holiday shopping season, the Employment Department said. The state typically adds about 5,100 retail jobs in November. Transportation and warehousing employment rose by 1,300, beating a November average of 900 jobs, another effect of the holiday season. “November’s gains continued to propel Oregon’s rapid job growth,” Nick Beleiciks, Oregon’s state employment economist, said in a statement. He warned the numbers could be revised down as more data from employers come in, but said the state’s job growth “persists as being faster than the nation and as strong as the previous expansion.” The retail gains offset a seasonal loss of 3,200 leisure and hospitality jobs. Overall, nonfarm employment rose by 6,000 across Oregon in November. Employment has risen by 56,000 during the year, with 85 percent of the gains coming from the private sector. The state’s labor force — the number of people employed or actively seeking work — grew by 8,627 in November, and 24,209 during the last year.
Basin Business Chamber membership anniversaries Adkins Consulting Engineer ng, LLC Carpenter Design, LLC Cascade Health Alliance, LLC Chambers Communications - KDKF Crater Lake Council Boy Scouts of America Exchange Club Favell Museum KOTI TV MC’s On Main Medford/Jackson County Chamber of Commerce
Nibbley’s - Caldwell Catering Inc North Shore Hawaiian Plate Lunch Parker’s Rod & Gun Rack S & H Bedroom Gallery Sanford Children’s Clinic Southtowne Commerce Center Tulelake Chamber of Commerce Washington Federal YMCA - The Y of Klamath Falls Yummy’s
Vintage from Page 3 “The sheriff back then probably turned a blind eye to alcohol consumption, but it could not be on display in the open, so it was hidden in the bar,” Jewell said. Another unusual item is a 60s-era coffee table, shaped in a triangle. The top swings open to reveal a liquor cabinet hidden below it, with a tray for bottles and glasses that can be raised for entertaining, then lowered and locked to keep out of the reach of children. There’s movie posters and dishware and a wide array of eclectic art. “The only thing I don’t like to sell are items made in China,” Jewell said, explaining that it applies to mass manufactured and cheaply made items. “We have a lot of fine craftsmanship from America and other countries. That’s what I like to sell.” Jewell also does his own refurbishing and often retools and repairs classic furniture for clients. “My grandmother and mother used to take me around to estate sales and teach me what to look for. So I developed an eye for quality. But I want it to be fun as well.” And, the shop is for local artisans to display their work if they wish.
H&N staff photo
Antique furniture is pictured at Everybody’s Vintage in downtown Klamath Falls.
“We have about 200 locals who participate in selling their items in the shop,” he said. The store is open Monday-Friday, 10 a.m. to 5 p.m. and Saturdays, 10 a.m. to 2 p.m. Check them out on Facebook at www.facebook.com/everybodysvintage
Thursday, Dec. 17, 2015, Herald and News
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Check out these endof-year investment tips Close out 2015 on a positive note Who knows where the time goes? Although 2015 is almost in the books, you can still make some year-end investment and financial moves that may help you get off to a good start in 2016. Here are a few suggestions: n Boost your 401(k) contributions. Ask your employer if you still have time to add more to your 401(k) before the year ends. If not, at least increase your contributions in 2016, especially if your salary goes up. n Consider “tax-loss” selling. We experienced considerable turbulence in the financial markets this past year, so you may own some investments that have lost value. Generally speaking, it’s a good idea to hold these investments if they still meet your needs, but if you do decide to sell them, you can use the loss to offset capital gains taxes on investments you’ve sold that have appreciated. If the loss from the sale was greater than your combined long- and shortterm capital gains, you can deduct up to $3,000 against other income. And if your losses exceed your capital gains by more that $3,000, you can carry the remaining losses forward to future tax years. n Review your asset allocation. Make sure your asset allocation —that is, your investment mix — is still appropriate for your time horizon and goals, You might consider being a bit more aggressive if you’re not meeting your financial targets, or more conservative if you’re getting closer to retirement. If you want greater diversification, you might think about adding an asset class that tends to react to market conditions differently
from your existing investments. Diversifying your portfolio may help reduce the impact of volatility; however, diversification, by itself, can’t guarantee a profit or protect against loss. If you do need to adjust, or “rebalance,” you can do so fairly easily in tax-deferred accounts, such as your IRA or 401(k) — but for those investments held in a taxable account, you should talk to your tax advisor on how to manage the tax consequences of rebalancing. n Evaluate your insurance situation. This past year, did you undergo any changes in your personal life, such as marriage, divorce or the addition of a new child? If so, review your life and disability insurance to make sure they are sufficient for your needs, and list the proper beneficiaries on all insurance policies. n Start an emergency fund. If you don’t already have one, start an emergency fund before the year is out. Ideally, you’d like to have between six and 12 months’ worth of living expenses in such a fund; without it, you might be forced to dip into your long-term investments to pay for unexpected costs, such as a new furnace, a major car repair or a big medical bill. For this fund, you’re less interested in return than in preservation of principal, so put your money in a low-risk, liquid account. Making these moves can help you close out 2015 on a positive note — and ring in the New Year with greater confidence in your financial future. Submitted by: MEREDITH HOFFMAN Financial Advisor, Edward Jones 1307 S Alameda Avenue, Suite B Klamath Falls, OR 97603-3601 Phone: 541-273-2483
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Basin Business
Thursday, Dec. 17, 2015, Herald and News
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December 2015 Newsletter for Oregon State Senator Doug Whitsett, District 28 Senator Doug Whitsett
R-Klamath Falls - District 28 I represent the citizens of Senate District 28, which includes Klamath, Lake and Crook, as well as parts of Jackson and Deschutes Counties. As Senator of one of the largest Senate districts in the state, it is extremely important that my constituents remain in contact with me about the issues and concerns that affect their lives. You and I must work together to protect the common interests of rural Oregonians. I encourage you to contact my office by either email or telephone so that I can know how to best serve you. I look forward to hearing from you soon. Best Regards, Senator Doug Whitsett
Capitol Address: 900 Court St. NE, S-311 Salem, OR 97301 Capitol Phone: 503-986-1728 Newsletters: www.leg.state.or.us/whitsett Email Senator Doug Whitsett: sen.dougwhitsett@state.or.us
PROFITING FROM RENEWABLE ENERGY... WITH YOUR TAX DOLLARS Governments often attempt to impose their social and political doctrines by using public funds to influence investment behavior. One method of choice is issuing tax credits that encourage and induce speculation in ventures that free market investors would normally avoid due to high risk and low probability of profit. Many of those who do choose to invest understand the importance of maintaining close and favored relationships with the politicians and bureaucrats who create and manage the distribution of the tax credits. They recognize how favored status can result in immense profits being reaped. The state of Oregon has issued more than $1 billion in tax credits designed to promote free market investments in highrisk renewable energy enterprises. Even if the public agrees that government-driven market distortion is an appropriate objective, tax credits are a very inefficient and costly way to achieve that goal. Most Oregon Business Energy Tax Credits (BETC) have been issued to municipalities, special districts, school districts, and nonprofit organizations that are tax exempt, or to businesses that have little hope of earning taxable profits. The tax credits are of little or no value to an entity with no tax liability, unless they can be sold. For that reason, the Legislative Assembly created a market for the sale of tax credits to business ventures that do have Oregon tax liabilities. Businesses purchase tax credits to offset their own taxable income dollar-for-dollar. The tax credits are sold at discounted rates, allowing the purchaser to earn capital gains profits on the difference between the face value of the tax credit and the discounted purchase price of the tax credit. For example, TriMet is a tax-exempt entity that was issued $1.8 million in Oregon BETCs. It sold the tax credits through a brokerage for $1.35 million, a 25 percent discount. This transaction provided the purchasers $450,000 in potential capital gain profits. Further, thirdparty brokers often earn tens of thousands of dollars by charging as much as five-percent brokerage fees. The combined cost of a 25 percent discount and a five percent brokerage fee would only leave 70 cents of each tax credit dollar to be applied to the intended purpose of encouraging renewable energy or greenhouse gas reduction. Some Oregon tax credits, issued to promote affordable housing, may have been sold for less than 55 cents on the dollar. After applying a brokerage fee, nearly half of the tax credit may have been diverted to third-party profits. State tax revenue is reduced one dollar for every dollar of tax credit issued and applied to reduce taxes owed. The program allows selected tax credit purchasers and their brokers to make enormous profits off of the public dime. Oregon investigative reporters and editorial boards have done an impressive job exposing the scheme. They have printed multiple articles alleging statutes and administrative rules were violated by third-party sales of Oregon tax credits. They contend favoritism likely
occurred in the selection of tax credit purchasers, as well as their brokers. Finally, they charge the potential exists that capital gains taxes may not have been either properly reported or paid. The Legislative Assembly intended for the Department of Energy (DOE) staff to broker the sale of BETCs at minimal discount rates established by the agency’s formula. However, a significant number of sales were brokered by third parties with substantially higher discount rates as early as 2012. These sales provided much larger profits for the buyers, as well as generous brokerage fees. The ODE claims it began allowing these apparently extra-legal sales based on advice of their Department of Justice (DOJ) attorney. Allegedly based on that advice, ODE then implemented temporary administrative rules in March of 2015 that served to retroactively authorize privately brokered BETC sales, with negotiated discount rates greater than ODE formula allowed, dating back to July 2010. ODE has declined to share the legal advice with their own staff, or other interested parties, claiming attorney-client privilege. Moreover, ODE’s management acknowledged to the Secretary of State’s audit team “it did not fully communicate, externally or internally, its 2012 decision to accept privately negotiated discounts. As a result, few financial firms were aware that discount restrictions had been lifted, and department staff gave conflicting advice when asked about transfer discounting.” It also appears ODE staff provided significant preference to one or more Portland-based brokerage firms. It appears that one “preferred” firm may have brokered the preponderance of the thirdparty negotiated BETCs with discount rates significantly greater than the limit established by ODE’s formula. It appears ODE did not keep records on the amount of the brokerage fees charged by these financial firms. It also appears that ODE staff may have been prevented from filing the appropriate tax forms to document taxable capital gains that resulted from the discounted sale of BETCs. At least one Department of Revenue (DOR) auditor has talked with Rep. Whitsett and me, other legislators and media reporters. That person alleges DOR’s auditors were specifically instructed by DOR management not to select transactions with potential BETC capital gains for audit procedures. It is alleged DOR management was working with then-Governor Kitzhaber to introduce legislation during the 2013 session that was designed to retroactively cancel potential capital gains on BETC sales. That alleged effort did not result in a law being enacted. Still, the audit moratorium was in affect for about 15 months. It served to permanently prohibit audits of hundreds of millions of dollars of BETC sales, due to the statute of limitation on Oregon tax audits. According to the DOR auditor, the instruction may have caused the loss of as much as $20 million dollars in state capital gain tax
revenue. It is unclear whether the federal taxable capital gains were appropriately reported to the Internal Revenue Service. ODE’s chief financial officer resigned soon after the reporters began publishing their news articles. The Secretary of State initiated an audit of the DOE after receiving a “hotline tip” from a concerned citizen regarding ongoing agency practices. The severely worded audit letter calls into question several DOE accounting policies, as well as questioning the legality of third-party brokerage of tax credit sales and the potential for favoritism. After the whistleblowers contacted Rep. Whitsett and me, we enlisted the aid of three other members of the House Revenue Committee. After again spending several hours on the phone with these “whistleblowers,” and conferring with Legislative Counsel, the five legislators agreed on a course of action. We wrote a letter expressing our concerns to several state and federal law enforcement agencies. Several seemingly related actions have occurred since that letter was sent and made public on December 7. Two days later, the Senate President and Speaker of the House made public their plan to appoint a bicameral committee to investigate the DOE. The Committee will begin hearings in February 2016 and will be directed to report its recommendations to the 2017 Legislative Assembly. Governor Kate Brown also announced that same day that she would assemble a task force of agency directors to perform a thorough and transparent review of the tax credit programs. To date, the only response from the law enforcement agencies is a letter from Fred Boss, Deputy Director of the DOJ requesting more specific information about allegations regarding the DOE. It does not specifically address allegations regarding the DOR. On December 10, the DOR’s director announced his retirement, which will be effective February 1. In my opinion, misuse of public funds and potential tax evasion may have occurred. I am greatly concerned that some of the malfeasance described may constitute criminal activity. It is my hope that our letter will result in parallel state and federal criminal probes that will definitively determine whether criminal acts occurred, the extent of those acts, if any, and seek appropriate punishment in the event that laws were broken. Please remember—if we do not stand up for rural Oregon, no one will. Best regards, Doug Follow the link below to subscribe to an electronic version of my weekly legislative newsletter updates: https://public.govdelivery.com/ accounts/ORLEG/subscriber/new?topic_id=ORLEG_30.