Minutes 04/10/2003

MINUTES

of the meeting of the

State of Nevada Commission on Ethics

Thursday, May 8, 2003

9:30 a.m.

Nevada Commission on Ethics

3476 Executive Pointe Way, Suite 16

Carson City, Nevada 89706

(via telephonic conference)

These minutes constitute a summary of the above proceedings of the Nevada Commission on Ethics. A verbatim transcript of the open session 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.; Lizzie R. Hatcher, Esq.; Merle Berman; Rick Hsu, Esq.

Commission Member Absent: Thomas R. Sheets, Esq.

Commission on Ethics Staff Present: Stacy M. Jennings, Executive Director; Nancy Lee Varnum, Commission Counsel; Beverly L. Amundson, Administrative Assistant

Chairman Todd Russell called the meeting to order at 9:30 a.m., Thursday, May 8, 2003.

Agenda Item 1 – Executive Director’s Report on the Status of 2003 Annual Financial Disclosure Statements Filed with the Commission Pursuant to NRS 281.561

In open session, the Executive Director reported on the status of 2003 annual financial disclosure statements filed by public officers and the 2003 candidate financial disclosure statements including candidates who, as of April 14, 2003, had failed to file a financial disclosure statement pursuant to NRS 281.561.

The Commission discussed potential civil penalties for the late filing of financial disclosure statements that were required to be filed with the Commission no later than March 31, 2003, and the requests received for waiver or reduction of the civil penalties. The Commission tabled the issue until the June 12, 2003 meeting, to be reconsidered after the adjournment of the legislature due to pending statutory changes and some guidance through legislative intent regarding same.

A motion was made by Commissioner Kosinski and seconded by Commissioner Hatcher “that we put off consideration of these penalties until the Commission’s next meeting. And at that meeting if there’s been a change of legislative policy, we could consider that in formulating how we are going to handle those requests for waivers.” Commissioner Kosinski further clarified his motion by adding “my motion does not include assessments on those folks who have not submitted waivers. My motion only relates to the waiver issue and how we are going to deal with those waivers if we have a mind to reduce any fees.” The motion was put to a vote and passed 4-2; Chairman Russell and Commissioner Flangas opposed. Commissioner Hsu then reconsidered his vote resulting in a tied vote to Commissioner Kosinski’s motion.

A motion was made by Commissioner Hsu and seconded by Commissioner Flangas to reconsider the motion made by Commissioner Kosinski. The motion was put to a vote and passed 4-2; Commissioner Kosinski and Commissioner Hatcher opposed.

A motion was made by Commissioner Flangas in which he agreed with Chairman Russell’s suggestion that the Commission wait and include everybody, whether they filed a waiver or not and defer the matter to the next meeting. There being no second the motion died.

Chairman Russell agreed to second the motion if Commissioner Flangas remade his motion exempting the candidates not currently holding public office. Commission Flangas accepted the amendment. Chairman Russell seconded the motion as amended. The motion was put to a vote and passed unanimously.

A motion was made by Commissioner Hsu and seconded by Chairman Russell to waive the civil penalties for the four city council candidates not currently holding public office to keep the consideration in line with the decision made at the April 10, 2003 meeting regarding first time candidates. The motion was put to a vote and passed unanimously.

Agenda Item 2 – Executive Director’s report on the status of bills pending in the 2003 Legislative session and FY 2004 and FY 2005 operating budget request, discuss and take any action related thereto.

In open session the Executive Director reported on the status of issues pending in the 2003 Legislative session including:

· SB 147, the Commission’s legislative proposal, is being heard before the Assembly Committee on Elections, Procedures, and Ethics at 5:00 p.m. today.

· AB 127 would repeal the campaign practices statute. It was heard in the Senate Government Affairs Committee yesterday. It should be scheduled for work session soon.

· AB 529, which makes various changes concerning reports of campaign contributions and expenses and transfers financial disclosure statement filing to the Secretary of State’s office, is in work session today in the Senate Government Affairs Committee.

· ACR 14 directs an interim study of election, ethics and campaign laws and would be comprised of City and County Clerks, a representative of the Secretary of State, and a representative of the Nevada Commission on Ethics.

· AB 539 is a bill the Nevada Association of Counties is running to try and tie together some of the local government purchasing statutes with the ethics laws to make it very clear when a public officer can and cannot enter into contracts.

Agenda Item 3 – Approve the Minutes of the April 10, 2003

In open session, the Commission discussed the minutes of the April 10, 2003 Commission meeting. A motion was made by Commissioner Hsu and seconded by Commissioner Berman to approve the minutes. The motion was put to a vote and passed unanimously.