Minutes
of the meeting of the
State of Nevada Commission on Ethics
Wednesday, October 16, 2002
9:30 a.m.
State Contractors’ Board Hearing Room
2310 Corporate Circle #200
Henderson, Nevada 89074
These minutes constitute a summary of the above proceedings of the Nevada Commission on Ethics. A verbatim transcript of the proceedings, 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.
Commission Members Absent: Lizzie R. Hatcher, Esq.; Ernest E. Adler, Esq.
Commission on Ethics Staff Present: Stacy M. Jennings, Executive Director; Beverly L. Amundson, Administrative Assistant
Parties Attending: Gwendolyn and Jerry Osburn; Louis Overstreet, Tony and Elaine Sanchez, Orlando A. Sandoval, Daniel Walters, Gerald Welt, Las Vegas Clark County Library District; Assemblyman Bob Beers
Others Attending: Joshua Hansen and Christopher H. Hansen, Independent American Party; Erin Neff, Las Vegas Sun; Michael Squires, Las Vegas Review-Journal
Chairman Todd Russell called the meeting to order Wednesday, October 16, 2002, at 9:35 a.m.
Agenda Item 1 – Approve the Minutes of the September 5, 2002, Commission Meeting. In open session, the Commission discussed the minutes of the September 5, 2002 Commission meeting. A motion was made by Commissioner Sheets and seconded by Commissioner Hsu to approve the minutes. The motion was put to a vote and passed unanimously.
Agenda Item 2 – Request for Advisory Opinion 02-17. The requestor, Gwendolyn Osburn, waived confidentiality and this agenda item was conducted in open session. 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.
A motion was made by Chairman Russell and seconded by Commissioner Kosinski that the subject had not violated the ethics in government law, but cautioned Ms. Osburn to be careful in the future to ensure she avoids using state time, property, equipment, or other facility to benefit or seek to benefit her in any financial capacity. The motion was put to a vote and passed 4-1. Commissioner Flangas opposed.
Agenda Item 3 – 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 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. Most expressed concerns they were not notified by the Commission of the need to file an annual financial disclosure statement or did not receive a reminder notice regarding same.
Chairman Russell thanked all parties from the Las Vegas Clark County Library District 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 E. Louis Overstreet. The motion was put to a vote and passed 4-1. Commissioner Kosinski opposed.
A motion was made by Commissioner Sheets and seconded by Vice Chairman Flangas to waive the potential civil penalty of Elaine Sanchez.
Commissioner Kosinski commented, “I still maintain the statute requires filing. If every time that somebody comes here and asks for a waiver of their penalty and we have to prove notice, I think we’re setting ourselves up for a very heavy burden.”
Chairman Russell responded, “I would agree that it is not up to this Commission, under the statutory provision, that we are required to give notice. However, I believe that we are allowed under the statute to look at extenuating circumstances and waive the penalties.”
Vice Chairman Flangas commented, “This situation has been a difficult situation for two or three years, and I think that with our new Director we’re on the road to putting together an understandable and clear cut directive to all public officers. And there is plenty – I think there is plenty of blame to go around, plenty of confusion. I believe that we have considered a lot of waivers in the past couple of months. Today we’re concerned with being consistent with our past actions, but I would hope that starting next year that we adopt a zero-tolerance for these omissions and failures to report. All it takes is about 10 minutes of a person’s time and a 37-cent stamp and all of this confusion all of this apparent stigma goes away.”
Commissioner Sheets commented, “I just want to make the comment so that my friend Commissioner Kosinski doesn’t misunderstand. I agree with you and Commissioner Chairman Russell. I don’t think we have an obligation to notify either. I think it’s because of the inarticulation of the standard by the Library District that’s caused these $40 a meeting appointees to misunderstand. So my motions are based on the individual facts and circumstances and not some suggestion that we have an inherent notice or obligation. So we’re all on the same page, even if we’re voting a different way on these things.”
The motion was put to a vote and passed 4-1. Commissioner Kosinski opposed.
A motion was made by Chairman Russell and seconded by Commissioner Hsu to reduce the potential civil penalty of Orlando A. Sandoval to $100. The motion was put to a vote and passed 4-1. Commissioner Kosinski opposed.
A motion was made by Chairman Russell to reduce the potential civil penalty of Daniel L. Walters to $500. The motion died for lack of a second.
A motion was made by Commissioner Sheets to reduce the potential civil penalty of Daniel L. Walters to $1,000. The motion died for lack of a second.
After the Commissioners discussed and compared the circumstances of Daniel L. Walters to other public officers who requested waiver or reduction of civil penalties in calendar year 2000, a final motion was made by Chairman Russell and seconded by Commissioner Sheets to reduce the potential civil penalty of Daniel L. Walters to $500. The motion was put to a vote and passed 4-1. Commissioner Kosinski opposed.
At this point in the meeting, Chairman Russell exercised the option of taking agenda items out of the order listed on the agenda.
Agenda Item 6 – Request from Assemblyman Bob Beers to Reconsider Commission Opinion No. CP98-02/CP98-03. In open session the Commission heard, considered, deliberated, and decided on a written request from Assemblyman Bob Beers to reconsider Commission Opinion No. CP98-02/CP98-03 (dated September 28, 1998), in which the Commission found that Assemblyman Beers violated the campaign practices provisions of NRS 294A.345 and imposed a $5,000.00 civil penalty against him.
Chairman Russell suggested that Assemblyman Beers contact the Commission’s Executive Director by and through Commission’s Legal Counsel and see if there is an ability to compromise or come to some conclusion on the $5,000 fine and then bring that back on an approval basis in front of the Commission.
Agenda Item 4 – Executive Director’s Report on the Status of 2002 Candidate Financial Disclosure Statements. In open session the Commission heard the Executive Director’s report on the status of 2002 candidate financial disclosure statements, including 22 candidates who, as of September 5, 2002, have failed to file a financial disclosure statement pursuant to NRS 281.561; and considered, deliberated, and decided any issues related thereto.
A motion was made by Chairman Russell and seconded by Vice Chairman Flangas to impose a maximum $50 civil penalty on the individuals who had failed to timely file financial disclosure statements. The motion was put to a vote and passed 4-1. Commissioner Kosinski opposed.
Agenda Item 5 – Determine the Filing Status of the Group of Candidates Who Filed with Commission Information Other Than the Specific Information Required Under the Financial Disclosure Requirements of NRS 281.561 and NRS 281.571. In open session the Commission discussed the filing status of the group of candidates who filed with the Commission information other than the specific information required under the financial disclosure requirements of NRS 281.561 and NRS 281.571.
After the Commissioners discussed options, a decision was made to direct Commission’s Legal Counsel to proceed with review of the filing of the declaratory relief action and see if it was feasible and make that determination. Commissioner Kosinski made one final comment that he didn’t think there is any ambiguity in the statute.
Christopher H. Hansen and Joshua Hansen, Independent American Party candidates, made public comments under this agenda item.
Agenda Item 7 – Executive Director’s Budget Report. In open session the Executive Director presented the budget report providing the Commission with information relating to the 3% budget reduction imposed on all agencies by the Governor’s office, which permanently cut $9,500 from the current and future budgets. Additional budget reduction requirements have been imposed on agencies to absorb within the existing and future budgets costs attributed to group health insurance and retired employees’ group insurance. This increase totals $6,208 annually, or 2% of the agency budget. Thus the agency budget has been cut 5% overall, and with 70% of the total budget dedicated to personnel costs, the outlook is bleak.
Agenda Item 8 – Public Comment. No parties made public comment.
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. Due to the absence of Commission Counsel, this agenda item was tabled until a future meeting.
Agenda Item 10 – Open session, if necessary, to take any action as a result of agenda item 9. Due to the absence of Commission Counsel, this agenda item was tabled until a future meeting.
Chairman Russell adjourned the meeting at 12:15 p.m.
Minutes approved by the Commission on November 7, 2002.
NEVADA COMMISSION ON ETHICS
By: Todd Russell, Chairman