March 2015
Basin Business
Thursday, March 19, 2015, Herald and News
KLAMATH BASIN
Business
Citizens for Safe Schools holds ‘mentor mingle’
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Downtown Klamath Falls looks up at second stories for growth — Page 5
Quail Park opens new unit
— Page 2 Members of Quail Park assisted living care facility cut the ribbon last week on the opening of its Memory Care unit.
Oregon jobless numbers improve, but not wages
See details — Page 2
— Page 7
A publication of the Herald & News
www.klamath.org
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Thursday, March 19, 2015, Herald and News
Basin Business
Ribbon cutting
Quail Park memory care to add 45 jobs By HOLLY DILLEMUTH H&N Staff Reporter
A place to call home. That’s what interior designer Linda Meyer hoped to provide when she designed the residences for Klamath Falls’ new $9 million Quail Park Memory Care, which focuses on care for those with Alzheimer’s disease and dementia. About 200 people recently attended a ribbon-cutting ceremony to celebrate the center’s upcoming opening, showcasing the new residence facility’s upscale fine dining hall with views of Upper Klamath Lake, and its unique layout. “We need a very home-like atmosphere,” Meyer said, describing the neighborhoods and residences. “You never know what will trigger that memory.” Courtyard areas, called neighborhoods, are detailed with an oldfashioned typewriter and desk, an old-fashioned cash register and grocery store, a railroad crossing with flashing lights, as well as walls with photographs that reflect the beauty of nearby lakes and rivers. The spaces are designed to give residents a glimpse of their past while helping them navigate the residence in the present. There are also interactive, old-fashioned phones displayed on several walls that reflect different time periods. “What we want to do is reflect a lifestyle as if they lived at their own home,” said Denis Bryant, CEO and president of LivingCare Lifestyles, based in Seattle. “They’re our guests,” he added. “It’s their home.” Bryant knows first-hand about the impacts of Alzheimer’s and dementia on residents and their families. “It’s hard on the families, they’re the ones that suffer,” Bryant said. His own mother was diagnosed with Alzheimer’s before he entered the senior housing industry, Bryant said. “I have a particular passion for
Quail Park staff, administrators and dignitaries from the LivingCare home office in Seattle toured the newly opened memory care unit of the facility last week. Items in the center harken back to simpler days, with dial telephones and railroad crossing signs. The goal is to provide a comfortable living center while treating patients for Alzheimer’s disease or dementia. Staff photos by H&N
See QUAIL PARK, page 6
Basin Business
Thursday, March 19, 2015, Herald and News
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Citizens for Safe Schools Klamath Falls at ComCap hosts ‘mentor mingle’ Citizens For Safe Schools is hosting a Mentor Mingle on Friday, April 10 from 6 to 8 p.m. at Biagio’s Bar & Grill located at 601 Harbor Isle Boulevard in Klamath Falls. This special event is designed to introduce prospective mentors to our program. Please join us and learn about our mission and how we strive to create a safe and drug-free community where all children, especially those at risk for delinquency, academic failure or victimization have opportunities to build resiliency and character and all adults feel empowered to help them. The primary activities include: Positive youth development, a character counts campaign of providing resources for violence prevention to educators and the community, and one-to-one mentoring, the heart and soul of what the group does. Its primary mentoring program is Kids in the Middle (KIM), which is a one-to-one community-based mentoring model that serves youth in the fourth through eighth grades. Students and mentors spend a minimum of one hour a week for one year out in the community, focused on having fun, getting to know each other and building social skills. Ja n i ne Hen r y, a K I M mentor since 2008 said, “My goal as a mentor is to expose my mentee to as many experiences as I can. However, my mentee also exposes me to things I thought I would never try. For example, rock climbing, hiking to the K and nature trails. The
Contact us: 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
slogan ‘mentor one child change two lives’ is spot-on. I may be a positive adult in my mentee’s life, but she is a highlight in mine.” “Kids are referred to the program by school counselors or other school administrators. Generally students are ‘in the middle’ of some life challenge and the counselor believes the student would benefit from the additional support of an adult role model,” said Debbie Vought, executive director. Prog ram Manager K im Abel advises, “Being a mentor gives one a deeper understanding of different cultures, different generations and even of the community we live in. By participating in a quality mentoring program you are safeguarding that children are more likely to do better in school; have aspirations for college and career; they’re more equipped to make responsible decisions and model good behavior; and they’re more likely to be productive and engaged citizens — all key factors in building a stronger community.” Mentoring is a rewarding way to invest in a young person and in our community. Don’t miss out on this special evening, enter to win door prizes, and learn more about this great opportunity. For more information, contact Kim Abel at: Kabel@citizensforsafeschools.org or call 541-882-3198. Visit the group on Facebook at www.facebook.com/citizensforsafeschools.org or website: www. Citizensforsafeschools.org
Heather Tramp: Marketing and Program Coordinator
ComCap Oregon, a statewide buisness and leadership conference, will be March 19-21 in Portland. The Klamath County Chamber of Commerce will be represented at the event. Oregon legislators, decisionmakers, entrepreneurs, investors, students and anyone interest in investing both time and money into building stronger communities, is invited to attend. Speakers will include leaders from Oregon’s small business and farm networks, law firms, government, nonprofit networks, and leading Oregon-grown companies. The agenda includes: n Thursday, March 19, 6 to 9 p.m. at HatchLab, 2420 NE Sandy Blvd. — Keynote, Panel & Opening Reception. n Friday, March 20, 8 a.m. to 9 p.m. at the Ambridge Event Center. — Keynote, 20 Sessions, Exhibitors and evening reception n Saturday, March 21, 9 a.m. to noon at HatchLab, 2420 NE Sandy Blvd. — Breakfast, Regional, and Statewide Breakouts.
Friday Session Titles Sampling: n “Why Raise Money from Oregonians? What’s the business ROI?” n “What makes rural Oregon special? Let’s talk strategies for rural communities.” n “The Truth About Raising Money: The Good, the Bad and the Surprising” n “Foodpreneurs and Farmpreneurs: Nurturing the localizers” n “What Business Consultants Need to Know to Make Money (not trouble!)” n “Building an Inclusive Entrepreneurial Pipeline. Why are some groups still not at the table?” You can visit the event online for more information on registering. Also, the Klamath County Chamber of Commerce is hosting Chamber Day at the Capitol on March 26. Email Heather in our office if you’d like to receive information on this event as it becomes available. This will be a great way to meet with legislators and network with Chamber members.
Do you own or manage rental properties? • Ever had a tenant pay the rent late or not at all? • Has your property been damaged by a tenant? • Do you need rental forms? • Are you looking to save money when upgrading or repairing your property? • Are you aware of the Fair Housing regulations? If you answered “yes” to any of those questions, find out how the Klamath Rental Owners Association can help you. JOIN TODAY!
Email: heathert@klamath.org www.klamath.org www.facebook.com/Klamath Chamber twitter.com/AccessKlamath
4509 South 6th St. #314 www.KlamathROA.com
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Thursday, March 19, 2015, Herald and News
Basin Business
Ripe for renewal
Upper level vacancies spur interest downtown (Reprinted from March 11 Herald and News) By HOLLY DILLEMUTH
Tessa Koch of Washington Federal, left, and Kendall Bell, president of the Klamath Falls Downtown Association, believe in growing downtown economically by developing second-floor apartments. The revitalization effort has received $13,000 — including a $3,000 grant from Washington Federal, and a $10,000 from the U.S. Department of Agriculture through Klamath Community Development Corporation.
H&N Staff Reporter
The downtown of a city often speaks about its identity. With several upper-level floors vacant in the Klamath Falls downtown area, local business leaders, property owners and community members gathered at the Ross Ragland Theater last week to learn how filling second-story spaces could help revitalize the downtown corridor, reinforcing a positive identity. “A good piece of the pie with revitalization efforts is really looking at the ability to have upper-floor housing,” said Sheri Stuart, coordinator for Oregon Main Street. Shem Harding and David Hyman, of Portland firm DECA Architecture, spoke to more than 40 attendees on how to demystify the how-to of building redevelopment, aiming to remove fear from the redevelopment equation. “The chalHarding lenge is to keep that historic character, revitalize that historic character, but modernize it so it serves the needs of businesses today,” Hyman said. “Hopefully we can help you demystify the process ... Convince you not to fear renovation, not to fear building codes and not to fear resources out there to help you.” Susan Beach, co-owner of Beach’s Jewelers, said she and husband and co-owner Dan Beach have been looking into renovating their 3,000 square feet of mostly vacant space upstairs for quite some time. Beach is hopeful to renovate for an apartment or retail space in the future. The couple invited Hyman
H&N staff photos
space above the store on Tuesday morning. “There’s a lot of room up there,” Beach said. “It could be a nice place. “It would be really nice to have some nicer apartments downtown.” Harding and Hyman admired the stock of downtown’s buildings during an evening walk about town, but noticed potential for redevelopment at several vacant spaces, emphasizing it could help revitalize the downtown area as a whole. “It stimulates the economy, it concentrates growth in smaller areas. It helps to reinforce the identity of the city. The challenge is to keep that historic character but modernize it so it serves the needs of businesses today.” Stuart said Klamath Falls is “ideally positioned” to transform upper level floor space left vacant or no longer in use also as a way to help keep more “millennials” – those born between the early 1980s and the early 2000s – and Baby Boomers in the community, she said. “Millennials really want that walkability factor,” Stuart said. “They want to be able to walk out their front door, go to restaurants, pick up their dry cleaning … they want that right outside their front
Some second-floor apartments downtown just need a little elbow grease and some investment of funds to be restored and livable.
Basin Business
Thursday, March 19, 2015, Herald and News
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Business commentary
Employees speak about AmeriTitle’s work ethic By CINDY COLUCCI Business Development Representative
In January of this year, AmeriTitle in Klamath Falls was voted the best place to work by chamber members and residents of the community. Receiving this award is quite an achievement, and perhaps many are curious as to what factors contribute to such an honor. In speaking with co-workers here in the office, a lot of insight was shared as to what makes all this “work.” I myself have only been with AmeriTitle since January, but I will say that from the moment I stepped inside the building the feeling of friendliness, warmth, family-like and above all a very caring atmosphere was certainly present. As I gathered feedback from my esteemed co-workers I sensed a common thread among them. Billy Breedlove was quoted as saying, “This is the best place to work because I truly enjoy everyone I work with. It makes it easy to succeed and to help our company be successful.” Twila Pellegrino added “It’s nice to work with such caring co-workers and teamwork if you need it!” I believe this is huge determining factor to the success in any work place, and in my opinion, something not found very often these days. Training also is an important factor in a business’ success, Jen Brazil was quoted as saying, “There’s a great camaraderie with the employees, and the company understands the importance of proper training.” I would be remiss if I didn’t add that the relationship with a boss, manager, vice president or whatever the title may be of the person in charge or answered to, may be extremely important. I’m sure most have heard the term “happy wife, happy life.” Well,
happy boss, happy employees. Happy employees lead to production and production leads to success. Jean Phillips is that person who makes everything work synergistically and harmoniously. As Vivian Hoffman said, “The boss is so easy to talk to and always willing to listen. Pleasant atmosphere.” And Lori Hodder added “We have a manager that exemplifies professionalism and expects nothing less. Jean provides a positive work environment that allows each of us to be our best.” What else contributes to earning this award? Here’s what Jean herself had to say: “AmeriTitle is always so supportive of their employees. “Employees work hard but also have fun and contribute back to the community. Most of the employees have been employed long term and have been supported by management in most of their endeavors. “The employees over the years have been through so many life changing events and are supportive of each other. “Our company also has a team called “AmeriTitle Angels.” “With a little empowerment from management, some imagination and a lot of heart, the AmeriTitle Angels network was formed and came to life in 2003. Today, it is still going strong and is fully embraced throughout the AmeriTitle system. “AmeriTitle Angels have no faces or names. The Angels are rewarded by the satisfaction and knowledge in knowing that they touch someone’s life and provide encouragement or enjoyment. “There’s a little angel in every AmeriTitle employee, but only a few are entrusted to wear the wings. The Angels volunteer their own time and effort to make sure every AmeriTitle family member in need is touched by this wonderful program. “Employees notify our team of an employee experiencing a life event
Visionary Hypnotherapy hosts 1-day health workshop Visionary Hypnotherapy is offering a workshop that combines hypnosis, mindfulness and positive psychology for a one-day event. This weight-loss workshop will include three separate inductions, dealing with common problems that lead to negative thinking patterns and self-sabotage. It will explore, in a small group setting, how new, complimentary resources can be learned and applied to challenging weight-loss issues. The inductions for this workshop will include: n Stop binge eating and enjoy less more; n Genuinely love to exercise; n Speed up your metabolism and eat mindfully; n Each induction includes a recorded CD for home practice; n Take home three CDs and weight-loss workbook; Weight loss is key to good health and better performance, both on and off the job. Every aspect of one’s life improve with an improved outlook, including better business, according to the workshop press release. It’s easy to look around and realize that many of us living in the Klamath Basin are not de-stressing in positive ways. This hypnotherapy event will be
Mark Fay, M.D. Scott Stevens, M.D. Physician/ Surgeon of the Eye Physician/ Surgeon of the Eye
based on the foundation of mindfulness and positive psychology strategies that help us to “be” in a more centered and grounded way. According to Milton H. Erickson, hypnotherapist, “Trance is a natural everyday experience.” In hypnotherapy, we learn to turn the negative trance into a positive experience. He also said, “You can pretend anything and master it” which beautifully explains how one can use their imagination to create a better life. The workshop is April 18. Space is limited. You can save $25 by registering before April 1. Regular price is $175 Visionary Hypnotherapy is a local practice, run by Kimberly Clark, CHt., who has been practicing hypnotherapy for nearly four years. Clark was trained at the Ashland School of Hypnotherapy by the school’s Director, Rochelle Jaffe, M.S., CHt, in a 200-hour certification program and additional advanced training in Medical Hypnotherapy and Soul Medicine (Mind, Body and Spirit). Contact Clark by visiting her website: visionaryhypnotherapy.com or by email: kimberlyclark44@gmail. com or by phone: 541-591-9392
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, March 19, 2015, Herald and News
Basin Business
Put tax refund to work for you In 2014, the average tax refund was about $2,700. If you got that much this year, what would you do with it? You can probably think of a lot of things you might do with $2,700. You might decide to splurge and buy some big-ticket item you’ve been eyeing. Or you could use the money to pay down some bills, which might be a good idea, especially if it helps improve your cash flow. As an alternative, though, you might consider investing the money. You might not think $2,700 would make that big a difference to your investment portfolio. But if you invested that $2,700 in a tax-advantaged account, such as an IRA, and you left the money alone, what might you earn? After 30 years, your $2,700 would have grown to more than $20,500, assuming no further contributions and a hypothetical 7 percent annual return. That’s not a fortune, of course, but it would help boost your retirement savings somewhat – and since it originated from a tax refund, it was accumulated pretty effortlessly from your point of view. Now suppose you put in the same amount — $2,700 — to your IRA each year for 30 years. Again assuming that same hypothetical 7 percent annual return, your money would have grown to more than $272,000. And that amount can indeed make a rather big difference in your retirement lifestyle. Keep in mind that you’d eventually have to pay taxes on that $272,000 if you had been investing in a traditional IRA, which is tax-deferred but not tax-free. It is possible, however, that if you start taking withdrawals when you retire, you’ll be in a lower tax bracket. If you meet the income guidelines for contributing to a Roth IRA, though, you could avoid
the tax issue altogether on your $272,000. That’s because Roth IRA earnings grow tax-free, provided you don’t start withdrawals until you’re 59-1/2 and you’ve had your account for at least five years. Thus far, we’ve only talked about putting your tax refund to work in your IRA — which, as we’ve seen, can be a very good idea. But suppose you’ve already developed the excellent habit of “maxing out” on your IRA each year by contributing a set amount each month? You can currently only put in up to $5,500 per year to your IRA, or $6,500 if you’re 50 or older. So you could fully fund your IRA by putting in about $458 per month (or $541 per month if you’re 50 or older). Those amounts are not unreasonable, especially as you move deeper into your career and your salary increases. If you do reach these limits each month, what could you do with your tax refund? You can start by looking closely at your portfolio to see if any gaps exist. Could you, for example, use your tax refund to further diversify your holdings? While diversification can’t guarantee profits or prevent losses, it can reduce the impact of volatility on your portfolio — and the less you feel the effects of volatility, the more likely you may be to stick with your long-term strategy rather than over-reacting to short-term price drops. So, when Uncle Sam sends you that refund, consider investing it one way or another. You’ll be putting it to good use. Submitted by: Meredith Hoffman,Financial Advisor, Edward Jones, 1307 S Alameda Avenue, Suite B, Klamath Falls, OR 97603-3601. Phone: (541)273-2483 Fax: (877)452-1831
Quail park opens new memory unit From page 2
Goal is to make patients feel like they are at home memory care,” Bryant said. “How would you want your mother treated?” That’s the basis with which he said the residences are designed, how care is administered, and how guests are to be treated. Details such as fresh flowers, fine dining choices, and professional attire of staff will also set the residence facility apart, according to Bryant. “We want to create a community within a community,” he said. Betty McCalister toured the rooms available at Quail Park Memory Care last
week with her granddaughter, Evelyne McCalister, who will fill one of about 45 -50 jobs on the new staff as a licensed nurse practitioner. McCalister lives in Quail Park Crystal Terrrace and has heard about the development of the residences. “I’m so glad they have done something for the forgotten people,” she said, as she admired one of the rooms. “It’s gorgeous.” Spaces are still available at the residential care facility, 1000 Town Center Drive, which also provides residences for those on Medicare. To learn more, go online at http://www.quailparkmckf.com/ or call 541-885-7250. hdillemuth@heraldandnews.com
Town of Isom can only be reached by small rail A new face is being put on the town of Isom in northern Klamath County. The first phase of urban renewal has already been completed with the addition of a new freight station, storage warehouse and delivery stables. Isom was originally founded by Donald Isom at the turn of the century and attributed its phenomenal growth to the success of its timber industry in Southern Oregon. In its heyday, Isom was a bustling frontier town with half a dozen saloons, a schoolhouse, a saw mill, merchantile and church. But due to the downturn in the economy, Isom fell on hard times. There is hope that the addition of these new businesses will bring the revitalization the townspeople desire. The freight depot should be able to handle the ever increasing flow of goods into the town and sur-
rounding farms and ranches. Lifting spirits as well is the rumor that gold has been discovered in the long abandoned Dutch Mine in the hills outside of town. If you are planning to visit Isom you will need to take the train to get there, the 7½-gauge, 1/8th scale Klamath and Western RR that is. Klamath and Western RR is located in Chiloquin and its season opens Memorial Day Weekend. But if you are interested in helping work on a project which continues to require much vision and manpower, join soon as you can to get involved in the fun of preparing for the summer season. Watch the Basin Business section for upcoming articles about the various activities of the club and the people who make it possible. Contact Klamath & Western RR 541 783-3177 for more information.
Basin Business
Two honored for work with U.S. Bank Tschetter wins top recognition Jaime Tschetter, U.S. Bank branch manager of the Town & Country branch in Klamath Falls, Oregon, has won U.S. Bank’s Pinnacle Award, the company’s highest employee achievement honor. Tschetter was among the top 10 percent of top performing employees nationwide to win U.S. Bank’s award for outstanding achievement and superior performance and will be recognized at a company dinner. “Jaime deserves tremendous congratulations for this achievement,” said Jill Letendre, Cal-Ore district manager for U.S. Bank. “She leads her team at the Town & Country branch to a high degree of success,
Letendre earns empolyee honor Jill Letendre, district manager for U.S. Bank in Yreka, Weed, and Alturas, Klamath Falls, and Lakeview, has earned the company’s Pinnacle Award, the company’s highest employee achievement honor. Letendre was among the top 10 percent of top performing employees nationwide to earn U.S. Bank’s award for outstanding achievement and superior performance and was recently recognized at a company event. This is Letendre’s 12th Pinnacle award. She is active in the community by serving on the boards of directors for United Way of Northern California, Yreka Rotary, Northern Valley Catholic Social Services, and Big Springs Elementary School District. She is also secretary for the Parent Teachers Organization and a primary leader with the Big Springs 4-H. Letendre also coaches soccer teams with the Weed Youth Soccer League. “Jill deserves our highest com-
always making certain our customers have an exceptional experience.” This is Tschetter’s first Pinnacle award. She attended South Dakota State University at Brookings, South Dakota and UniverTschetter sity of Alabama at Huntsville, Alabama and volunteers in the community serving on the board of Junior Achievement Board and on the United Way Allocation Committee. In addition, Tschetter is a member of Rotary International and volunteers with Meals on Wheels in Klamath Falls. U.S. Bank’s Pinnacle awards program recognizes outstanding achievement and rewards employees for their tremendous performance. mendation for this achievement,” said Gloria Schell, regional president for U.S. Bank. “Under her leadership, all of the branch teams in the district have exceeded expectations — and folLetendre lowed her lead — by giving hundreds of hours volunteering in their communities.” Schell noted that it is because of employees like Letendre that U.S. Bank has received several accolades this past year, including being recognized for five years in a row by Fortune magazine as the most admired superregional bank. U.S. Bancorp (NYSE: USB), with $403 billion in assets as of Dec. 31, is the parent company of U.S. Bank National Association, the 5th largest commercial bank in the United States. The company operates 3,176 banking offices in 25 states and 5,022 ATMs and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment.
Thursday, March 19, 2015, Herald and News
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Chamber members anniversaries Air Link Critical Care Transport Anytime Fitness Bank of the Cascades Basin Transit Service Beach’s Jewelers Coldwell Banker Holman Premier Realty Columbia Forest Products Comfort Inn & Suites Commute Options Crater Lake - Klamath Regional Airport Cummings Roofing Inc. Diamond Home Improvement Center Diamond S. Meat Co. Elmer’s Restaurant Enterprise Rent A Car ESI Fleet Pride Ganong, William M Great Basin Insurance Green Blade Bakery Heaton Steel & Supply Home Depot Horse Motel 10 & Boarding & Cattle Jefferson State Shooting Association JELD-WEN, Inc. Keeper’s Corner KLA-MO-YA Casino Corp. Klamath-Lake CARES
Klamath Basin Behavioral Health Klamath Basin Equipment Klamath Discount Depot, LLC Klamath Energy - Iberdrola Klamath Eye Center/Downtown Optical Klamath Hospice, Inc. Klamath Union DECA Chapter Monte Johnson Insurance Services Inc. Mount Mazama Spring Water Neal Buchanan Northwest Farm Credit Services Oregon 8 Motel & RV Park Pahlisch Homes Parr Lumber Pelican Marina People’s Warehouse Pepsi Cola Bottling Co Quality Inn Reames Golf & Country Club Romig & Associates PC Spokes Unlimited State Farm - Phil Kensler Steen Sports Park Stewart Property Management Services Super 8 Klamath Falls Townhouse Motel Trekker Designs, Inc. Vagabond Inn & Suites
Oregon jobless numbers improve, but wages don’t By The Associated Press Oregon’s unemployment rate has fallen significantly again, amid signs that businesses are becoming quick to hire but remain slow to grant raises. The state Employment Department said Tuesday the jobless rate dropped half a percentage point in February, to 5.8 percent. The agency says the number of long-term unemployed people continues to fall. The number of workers in part-time jobs who would rather work full time has also fallen. Nonfarm payroll employment was up again in February, by 2,400.
That’s the smallest increase in the past half year, though. And wage gains are slim, according to the agency’s figures: Over the past twelve months the average private sector wage gains amount to about 18 cents an hour, or .8 percent.
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Basin Business
Thursday, March 19, 2015, Herald and News
Paid Advertisement
March 2015 Newsletter for Oregon State Senator Doug Whitsett, District 28 Senator Doug Whitsett
Capitol Address: 900 Court St. NE, S-311 Salem, OR 97301 Capitol Phone: 503-986-1728
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
Newsletters: www.leg.state.or.us/whitsett Email Senator Doug Whitsett: sen.dougwhitsett@state.or.us
ARE WE A NATION OF LAWS... OR ADMINISTRATIVE RULES? For the most part, the legislative process is transparent and allows citizens to weigh in on matters that will ultimately affect aspects of their daily lives. Agendas for committee hearings held at the capitol are made available to the public through the legislative website, www.oregonlegislature.gov, which enables the public to inform their senators and representatives of their thoughts on the proposed bills. They can submit written testimony, watch streaming footage of the meetings in real time, or even make the trip to Salem to testify in person. Deliberations in those committees are open to the public. Legislators who vote to advance bills are on the record with their support or opposition. The written testimony of the various citizens and interest groups who testify on those measures can be viewed by anybody wishing to do so. But the laws passed through the legislative process are not the only ones that have the ability to regulate the conduct of individuals and businesses. Administrative rules adopted by state agencies have the same legal authority as the statutes that are vetted and passed by elected representatives. They can also be very broad and far-reaching, only being limited by their statutory authorization. The issue of administrative rules came up late last month during a meeting of the Ways and Means General Government Subcommittee while reviewing the Secretary of State’s budgets. I asked the State Archivist about the depth and scope of Oregon’s administrative rules. She responded offhand that there is no easy way to obtain that information. That fact should be of great concern to Oregonians. At a follow-up meeting in my office, I asked the State Archivist to estimate the total number of Oregon administrative rules and to provide a breakdown on rules filed by agencies with input from a Rules Advisory Committee (RAC), rules filed by agencies that allowed for public hearings and rules made with only public comment periods. In order to provide my office with an estimate, she examined almost half of the agencies that have administrative rules in place. She then added up the number of administrative rules that those agencies have and divided that number by the number of agencies she studied to compute the average number of rules per agency. That average was then multiplied by 180, which is the total number of state agencies and boards with rules. That calculation produced a grand estimate of 43,000 Oregon administrative rules that are currently in place. We discovered that there are 11,108 permanent rules, 3,166 temporary rules and 1,388 notices that were filed during the past two years. That totals an astounding 15,662 administrative actions. Of the 1,388 notices filed, 603 indicated that they used a RAC and 912 notices filed included at least one public hearing. All of the 11,108 permanent rules filed allowed for public comment; however,
none of the 3,166 temporary rules required any input from the public. To put those figures into perspective, there are 730 days in a two-year biennium. If weekends and holidays are excluded, the biennium includes about 500 total business days. This means that there are just over 30 total administrative actions taken for every business day of the year, about one every fifteen minutes. Keeping track of all of these rules and regulations is virtually impossible for legislators and is especially difficult for the average citizen or small business owner. It is now nearly impossible to determine if we are in compliance with all of the myriad Oregon administrative rules. As you can see, the processes in place for proposing and passing those rules are much different than those for creating statutes in the Legislature. The biggest difference is that there is nowhere near the same amount of accountability to the public in the rule-making process. Nevertheless, the end result is virtually the same because both statutes and administrative rules carry the full force of the law. Citizens who are unhappy about how their elected officials are voting on bills have the option of exercising their rights at the ballot box. They are afforded the opportunity to unseat and replace representatives every two years and senators every four years. That is a critical component of the checks and balances built into our system of government. The administrative rule process generally does allow for public input. Notices of proposed rulemaking are publicized, and citizens may submit comments for consideration. Unfortunately, agencies are under no obligation to take action on comments or testimony submitted by the public. Further, agencies are authorized to create temporary administrative rules without any public input. These rules also have the full power of Oregon law for up to 180 days and can be renewed by the agencies. No meaningful legislative oversight for the rulemaking process currently exists. Repeated legislative attempts to establish such oversight has been met with fierce and effective opposition from the executive branch. It should come as no surprise that the process for creating administrative rules doesn’t always work as it is intended to serve the public. Last year, it came to my attention that the Oregon Water Resources Department (OWRD) was planning to adopt a series of administrative rules directly impacting irrigators in the Upper Klamath Basin. While the agency had followed the legal procedure for notification of rulemaking, no local elected officials or affected citizens were aware of the hearing that was scheduled to take place in Klamath Falls that same day! My office and a county commissioner were able to contact
those officials and local media outlets to alert them of what was about to take place. This frustrating set of circumstances prompted me, Rep. Gail Whitsett (R-Klamath Falls) and Rep. Sal Esquivel (R-Medford) to draft House Bill 2497. Our purpose is to help prevent such a situation from occurring again. The bill requires a natural resource agency that intends to adopt, amend or repeal a rule that will affect the activities of persons in a particular legislative district or geographic area to provide notice of its action to the members of the Legislature who represent those districts at least 49 days prior to the effective date of that action. This very simple proposal will go a long way towards providing the public with more opportunities to influence the adoption of administrative rules that could alter the way they conduct their business or personal affairs. A public hearing was held on HB 2497 in the House Agriculture and Natural Resources Committee on Tuesday, March 10. It is my hope that this very important bill will make its way through the legislative process and become law. Our Founding Fathers gave to us a unique system of government that has served Americans well for more than two centuries. The freedoms we have enjoyed as a result of our Constitutional republic helped create the greatest prosperity in the history of mankind. That prosperity is now being undermined by the broad rulemaking authority granted to agencies through the passage of laws such as Senate Bill 324, the Low Carbon Fuel Standard, and House Bill 2177, the automatic voter registration bill. Voters will ultimately have an opportunity to determine their willingness to continue to be represented by legislators that support such bills. However, the rules that will be adopted by state agencies to implement those laws will never be subject to the same level of scrutiny or accountability. We believe that HB 2497 is a small step in the right direction for those of us who believe in the principles of limited government and the rule of law that was provided to us through the documents that set the foundation of our great nation. 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.