Opinion:

Federal Financial Disclosure Law Superior To Silver State's

Who Gives What Disclosed At Federal Level; Often Hidden From View In Nevada

by Johnny Gunn

Information available because of federal campaign finance laws is far superior to what is made available by way of Nevada's disclosure laws was brought to the forefront recently by way of a pair of releases. One, from the Center for Responsive Politics (http://www.opensecrets.org) tells us that at the federal level gaming interests in Nevada was the leading industry as far as campaign contributions. That shouldn't be the least surprising, but at the state level that kind of information isn't available.

At the federal level we discover that MGM Mirage, Harrah's Entertainment, and Station Casinos were the three top contributors bringing a total of $451,742 into the election coffers of Nevada's federal campaigns. The 14th top contributor at the federal level is the Walters Group. These figures are for federal offices, that is senate and members of congress.

We know for instance that Nevada's Casino Industry has donated $573,492 so far in this 2005-2006 election cycle to those running for federal office. What have they donated at the local level? That information isn't available. There is a way to find out, though.

Take each and every page of the Nevada Contributions and Expenses (C&E) reports, build a data base computer program, transfer the information for as many as 25 pages for as many as eight reports from each and every candidate, and if you know the hidden secrets of how the money is transferred, you might come up with an answer. In Nevada this is called open government.

According to another report Nevada Senator Harry Reid (D) is discovered to have taken campaign donations, some to his own campaign, some to a PAC operated by Reid from lobbyist Jack Abramoff. The money comes from Indian gaming interests that don't want a spread of gaming to other Indian gaming interests. Abramoff is under investigation and according to congressional ethics rules, there is a question about the donations.

Reid is said to have accepted donations from the Coushattas and Choctaw Indian gaming interests while working to block an Indian gaming venture that could impact the Coushattas and Choctaw interests. According to records that have been made available, Reid and his tax exempt PAC called Searchlight Leadership Fund has received as much as $66,000 from Abramoff and those he represents.

The possible ethics violations concern taking campaign finances from one group while working to stop competition. You might want to review the so-called Keating Five scandal from a few years ago. Members of Congress were accused of intervening with federal regulators while taking money from a savings and loan company.

According to the Center for Responsive Politics the five leading industries in Nevada have given $1,467,649 to Nevada federal office seekers so far in this current election cycle. Those five are Gaming, Retired individuals, Real Estate, Lawyers and Law Firms, and Health Professionals. Considering Nevada only has three members of the House of Representatives and two Senators, that's a healthy chunk of change. The important thing to remember is that we know it.

At the federal level we know that real estate interests have given $259,590 so far in this election cycle. How many local politicians have received money from real estate interests? At the federal level we know that Bill Walters and the Walters Group has contributed $23,000 but what amount has been given at the Clark County level? And to whom?

That is the concept behind Nevada's election campaign finance law. If you don't know you can't raise hell. The campaign finance law has been written by those that must fill out the forms, make the disclosures, and has been supported by a state agency (Secretary of State) that is headed by a politician that also must make public disclosures.

It is important for us to know how much money a candidate receives. It's more important to know where that money is coming from. Often in criminal cases one hears the phrase "follow the money." Just try that with Nevada's secretive campaign finance disclosure laws.

Here are two examples of why the Nevada campaign finance laws are more than troublesome. These are straight from the Secretary of State's web site. One would think that someone in the Secretary's office would be able to do something about what appears to be somewhat illegal. The reports are from February of this year.

Angle, Sharron

• Party: Republican 
• District: Washoe, No. 26
• 2005 Annual Financial Disclosure -- Nothing
• 2004 Annual Financial Disclosure -- Nothing
• 2003 Reports -- Nothing
• 2002 C&Es 

Allen, Francis

• Party: Republican
• District: Clark, No. 4
• 2005 Annual Financial Disclosure
• 2004 Annual Financial Disclosure (Financial disclosure statement only; no C&E period reports) 
• 2003 Reports -- Nothing
• 2002 C&Es 

One writer to TNO made a suggestion that just might be worthy of follow up:

"Maybe this might work: Require all candidates to fund their campaigns through a publicly viewable escrow account, meaning all contributions in and payments out come from a checking account held by a neutral financial institution, with the register visible to you and me. Make it against the law for any candidate to pay for anything related to their campaign from or with any other instrument. If they want to play with their own money, great! But first they still have to toss the chips into a war chest open to public view. If you or I choose to support that campaign, our dollars end up as an entry in their register."

Certainly something to think about. It still doesn't answer the question about what happens when the law is ignored, as in the case of so many C&E and disclosure reports, or when a candidate flaunts the law and accepts more money than the law allows. The current secretary says he can do nothing about either situation.

Our reader had a thought dealing with C&E and disclosure reports that are fraudulent:

"It seems to me that just by signing the document "under penalty of perjury" a full audit could be called for by Heller. Kind of like filing your taxes. You can fill in any numbers you like, but you'd better be able to back them up if the IRS ever audits you. "

The gap between what the Federal Elections Commission demands from candidates and their contributors is miles from what Nevada's Secretary of State demands. From those who simply won't or can't take the time to investigate the Nevada C&E reports has come what appears to be a level of apathy rather than a level of anger.

Yes, we should be angry that we can't figure out who is giving what to whom. "Leader: One who directs by influence. One who guides." We need a few of those.

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