MINUTES
of the meeting of the
State of Nevada Commission on Ethics
Thursday, November 7, 2002
9:30 a.m.
Nevada State Legislature
These minutes constitute a summary of the above proceedings of the Nevada Commission on Ethics. A verbatim transcript of the open sessions, prepared by a certified court reporter, is available for inspection at the Commission office.
Commission Members Present: Todd Russell, Chairman; William Flangas, P.E.; Jim Kosinski, Esq.; Thomas R. Sheets, Esq.; Rick Hsu, Esq.; Ernest E. Adler, Esq.; Merle Berman
Commission Members Absent: Lizzie R. Hatcher, Esq.
Commission Staff Present: Stacy M. Jennings, Executive Director; Nancy Lee Varnum, Commission Counsel; Beverly L. Amundson, Administrative Assistant
Parties Attending: John L. Balentine, Washoe County Purchasing Department; Bill Berrum, Washoe County Treasurer; Maureen Sheppard-Griswold, Deputy District Attorney, Washoe County; Peter Simeoni, Deputy District Attorney, Washoe County; Irene Hobson-Rogerson and Tina Springmeyer, State Apprenticeship Council; Tony Clark, Solicitor General, Office of the Attorney General; John S. Wright, MAI, Commission of Appraisers of Real Estate
Others Attending: Cy Ryan, Las Vegas Sun
Chairman Todd Russell called the meeting to order at 9:30 a.m., Thursday, November 7, 2002.
Agenda Item 1 – Pursuant to NRS 281.511(6) and NAC 281.191 Consider Information and Requests Related to Procedural and Other Issues Not Related to the Merits of a Request for Opinion filed with the Commission but for which Just and Sufficient Cause has not yet been determined by a Commission Panel.
In closed session pursuant to NRS 281.511(6) and NAC 281.191 the Commission considered information and requests related to procedural and other issues not related to the merits of a request for opinion filed with the Commission but for which just and sufficient cause has not yet been determined by a Commission panel.
Agenda Item 2 – If necessary, to take any action as a result of agenda item 1.
Chairman Russell set the panel to consider just and sufficient cause on Request for Opinion 02-20. The panel will consist of Chairman Russell and Commissioner Sheets.
Agenda Item 3 – Approve the Minutes of the September 27, 2002, October 16, 2002 and October 23, 2002 Commission Meetings.
In open session, the Commission discussed the minutes of the September 5, 2002 Commission meeting. A motion was made by Commissioner Adler and seconded by Commissioner Kosinski to approve the minutes. The motion was put to a vote and passed unanimously.
The Commission discussed the minutes of the October 16, 2002 Commission meeting. A motion was made by Commissioner Adler and seconded by Commissioner Sheets to approve the minutes. The motion was put to a vote and passed unanimously.
The Commission discussed the minutes of the October 23, 2002 Commission meeting. A motion was made by Commissioner Hsu and seconded by Commissioner Sheets to approve the minutes. The motion was put to a vote and passed unanimously.
Agenda Item 4 – Executive Director’s Report on the Status of Calendar Year 2001 Financial Disclosure Statements Filed Pursuant to NRS 281.561.
In open session the Commission heard the Executive Director’s report on the status of calendar year 2001 financial disclosure statements filed pursuant to NRS 281.561 and considered, deliberated, and decided any issues related thereto, including requests for reduction or waiver of potential civil penalties. The requests of John L. Balentine and Bill Berrum were deferred at the October 16, 2002 Commission meeting until the November 7, 2002 meeting. Each party requesting a reduction or waiver was given the opportunity to explain the circumstances surrounding their late filing.
Chairman Russell thanked all parties for participating and stated that each individual’s request for reduction or waiver of potential civil penalty could be considered separately.
A motion was made by Chairman Russell and seconded by Vice Chairman Flangas to reduce the potential civil penalty of John L. Balentine from $13,225 to $250.
Commissioner Kosinski commented, “Contrary to my usual position on these issues, I really – I oppose the motion primarily because of Mr. Balentine’s annual filings. I mean, even though he was not in technical compliance, he certainly made an effort every year to file a financial disclosure statement. And I would oppose the motion as presented.”
Chairman Russell withdrew the motion.
Commissioner Adler commented, “My problem with assessing a fine here is this seems to have gone on beyond the time that he even served. His predecessor only filed these every other year and no fine was ever assessed. No notice was ever sent out. Then he thinks he’s doing something, which is better than his predecessor by filing every year, even though he’s doing it incorrectly. Never receives a notice. I just have a hard time with assessing a fine under those circumstances when somebody has, kind of what would be referred to as a pure heart defense. They think they are doing the right thing. And I’m sure after today he is going to file his reports timely from now on out. You know, I have a hard time with assessing a fine under the circumstances.”
A motion was made by Commissioner Kosinski and seconded by Chairman Russell that although the Commission finds a technical violation of the financial disclosure provisions of Nevada’s ethics law, the Commission imposes no fine against Mr. Balentine. The motion was put to a vote and passed unanimously.
A motion was made by Commissioner Sheets and seconded by Vice Chairman Flangas to reduce the potential civil penalty of Bill Berrum to $500.
Commission Hsu commented, “I guess I have a problem with this, having sat on the subcommittee on this. One of my sympathies lies with people who volunteer their time and they are serving and being paid $80 a meeting and then the expectation is for them to file these things, and problems come up, and then they have this huge fine pending. With Mr. Berrum’s circumstance, I just have a little bit of problem with the amount. I certainly don’t like the amount of penalty that he’s facing. But at the same time he is an elected officer, number one. Number two, he is paid. And number three, he knows about it. Number four, he really has no excuses. The fact that he has come here is to his credit, seeking forgiveness, but I am not sure at least in my own reasoning on why $500 is a sufficient penalty in this case. And I can actually anticipate Mr. Kosinski thinking that there could be – I mean, I’ll let him speak on that. But my thought is, I don’t think I can support this motion.”
The motion was put to a vote and passed 5-2. Commissioners Kosinski and Hsu opposed.
Agenda Item 5 - Consider, Deliberate, and Decide Appeals of the Commission’s Action with regard to the Requests for Waiver or Reduction of Civil Penalty for Failure to Timely File an Annual Financial Disclosure Statement Pursuant to NRS 281.561.
In open session the Commission considered, deliberated, and decided appeals of the Commission’s action with regard to the requests for waiver or reduction of civil penalty for failure to timely file an annual financial disclosure statement pursuant to NRS 281.561.
Chairman Russell thanked all parties for participating and stated that each individual’s request for reduction or waiver of potential civil penalty could be considered separately.
A motion was made by Commissioner Sheets and seconded by Vice Chairman Flangas to waive the potential civil penalty of Irene Hobson-Rogerson.
Commissioner Kosinski commented, “I would just like to comment, so far this morning we have had the good heart defense, we have had the senior moment defense, and now we have the incompetent government agency defense. I just feel that a fine should be imposed as required by statute, and it’s up to the legislature to make any changes.”
The motion was put to a vote and passed 6-1. Commissioner Kosinski opposed.
A motion was made by Commissioner Sheets and seconded by Commissioner Hsu to deny the request for waiver of the potential civil penalty of Franz N. Niegemann, who was not present at the hearing. The motion was put to a vote and passed unanimously.
Agenda Item 6 – Public Comment.
No public comment was made.
Agenda Item 7 – Pursuant to NRS 281.511, Subsection 5 Hear Testimony, Receive Evidence, Deliberate, and Render an Opinion Relating to a Confidential Advisory Opinion Request submitted pursuant to NRS 281.511, Subsection 1.
Pursuant to NRS 281.511, Subsection 5 the Commission heard testimony, received evidence, deliberated, and rendered an opinion relating to an Advisory Opinion Request submitted pursuant to NRS 281.511, Subsection 1. The requestor, John S. Wright, waived confidentiality.
Chairman Russell recused himself due to a conflict of interest. After testimony by Mr. Wright, a motion was made by Commissioner Kosinski and seconded by Commissioner Adler that based upon the facts as presented by Mr. Wright there was no conflict. The motion was put to a vote and passed unanimously, with Chairman Russell abstaining from discussion and the vote.
Agenda Items 8 – Pursuant to NAC 281.187 Consider Information, Deliberate the Matter, and, if Appropriate, Initiate an Ethics Complaint against a Public Officer or Public Employee on the Commission’s Own Motion pursuant to NRS 281.511(2)(c).
In closed session pursuant to NAC 281.187 the Commission considered information, deliberated the matter, and determined whether to initiate an ethics complaint against a public officer or public employee on the Commission’s own motion pursuant to NRS 281.511(2)(c).
Agenda Items 9 – Closed session pursuant to NRS 241.015, Subsection 2(b)(2), to receive information from Commission Counsel regarding potential or existing litigation involving matters over which the Commission has supervision, control, jurisdiction, or advisory power; and, if necessary, to deliberate toward a decision on the matters.
In closed session pursuant to NRS 241.015, Subsection 2(b)(2), the Commission received information from Commission Counsel regarding potential or existing litigation involving matters over which the Commission has supervision, control, jurisdiction, or advisory power; and, deliberated toward a decision on the matters.
Agenda Item 10 – Open session, if necessary, to take any action as a result of agenda item 9.
In open session, the Commission took no action as a result of agenda item 9.
Chairman Russell adjourned the meeting at 1:10 p.m.
Minutes approved by the Commission on January 16, 2003.
By: /s/ Todd Russell, Chairman