The Committee on Elections, Procedures, and Ethics was called to order at 5:35 p.m., on Wednesday, February 10, 1999. Chairwoman Chris Giunchigliani presided in Room 3138 of the Legislative Building, Carson City, Nevada. Exhibit A is the Agenda. Exhibit B is the Guest List. All Exhibits are available and on file at the Research Library of the Legislative Counsel Bureau.

COMMITTEE MEMBERS PRESENT:

Ms. Chris Giunchigliani, Chairwoman

Mr. Bob Price, Vice Chairman

Mr. Bob Beers

Mr. Joseph Dini, Jr.

Ms. Sheila Leslie

Ms. Kathy McClain

Mr. Richard Perkins

Ms. Sandra Tiffany

Ms. Kathy Von Tobel

GUEST LEGISLATORS PRESENT:

Ms. Dawn Gibbons, Assembly District 25

STAFF MEMBERS PRESENT:

Pamela Crowell, Secretary of State

Janine Hansen, President of New Eagle Forum

Merritt (Ike) Yochum, Independent American Party

Francis Gillings, Independent American Party of Washoe County

Patricia Caffarata

Lucille Lusk, Nevada Concerned Citizens

Gary Peck, American Civil Liberties Union of Nevada

Kent Lauer, Nevada Press Association

Chairwoman Giunchigliani stated there was a housekeeping matter and asked for a motion for a Bill Draft Request (BDR R-1393).

• B.D.R. R-1393 - Designates March 23, 1999, as Nevada Diabetes
  Awareness Day.

ASSEMBLYMAN PERKINS MOVED FOR COMMITTEE INTRODUCTION OF BDR R-1393.

ASSEMBLYWOMAN VON TOBEL SECONDED THE MOTION.

MOTION CARRIED UNANIMOUSLY.

Chairwoman Giunchigliani opened the hearing on A.B.40 and introduced Assemblywoman Dawn Gibbons as the primary sponsor of the bill.

This measure was an act related to elections and, if passed, removed the requirement a candidate for certain partisan offices who received a majority of the votes in a primary election be declared the nominee for such an office.

Assemblywoman Dawn Gibbons spoke in favor of A.B.40, as she felt a lot of the voters in some district primaries had been shut out during the primary election. The current law said the person with the most votes if no opposition party candidate would win the election during the primary election and would have no need to proceed to a general election. She suggested all parties needed to get out and work for a primary election, and work to recruit opposition from both parties. In Nevada, a growing numbers of voters were not in the two main parties, and therefore, would have no vote under the present law. Primary elections were actually harder to go through, and most candidates wanted more participation from the people in voter turnout.

Assemblywoman Gibbons introduced Patricia Cafferata, also from District 25, who was her opponent in the last primary election. Ms. Cafferata briefly outlined her background in politics. Prior to a legislative change last session, the two top candidates would run in the general election. During the last session of the legislature, the law had been changed to read that whoever won the primary, regardless of vote difference, won the election if there was no opposition from another party. Ms. Cafferata spoke in favor of A.B.40, which would repeal that law. She added more than 7,500 people were disenfranchised, because they were not given the opportunity to vote for the candidate of their choice in the primary election. She felt it was a bad law.

Chairwoman Giunchigliani requested the people who wished to speak do so in groups. She called Janine Hansen, President of the New Eagle Forum, who said she simply wanted to acknowledge her support.

Chairwoman Giunchigliani then called on Mr. Merritt (Ike) Yochum and Mr. Francis Gillings, both of the Independent American Party. Mr. Gillings spoke in favor of the bill and wished it had gone a little further as everyone needed the right to vote. Mr. Yochum concurred with the previous statements. Chairwoman Giunchigliani thanked both men for their presence.

The next person called by Chairwoman Giunchigliani was Lucille Lusk, a member of Nevada Concerned Citizens, who was in favor of A.B. 40. She emphasized the necessity of enabling everyone to vote.

The Chair asked if there were any other speakers or questions. Hearing none, she closed the hearing on A.B. 40 with no action taken by the committee.

Chairwoman Giunchigliani opened the hearing on A.B. 57.

This measure was an act related to the legislature and, if passed, prohibited lobbyists and certain former lobbyists from giving certain gifts to legislators; prohibited legislators from soliciting or accepting gifts from registered lobbyists and certain former registered lobbyists; provided a penalty.

Chairwoman Giunchigliani called the main sponsor of A.B. 57, Assemblywoman Von Tobel, District 20, to testify.

Assemblywoman Von Tobel went over a memorandum (Exhibit C) dated February 10, 1999 she had asked research staff to prepare because she could not understand the bill. It had come from bill drafting with more language than she had requested. A.B. 57, she said would not stop registered lobbyists from giving food and beverages to legislators but would preclude entertainment. Assemblyman Perkins asked the following question:

" What if legislators attended a function and the invitations noted food and beverage would be provided; and when you attended the function, a string quartet was playing in the background?"

Assemblywoman Von Tobel answered music would now be considered "entertainment," and, according to A.B. 57, would not be allowed and would become a reportable gift.

Assemblyman Price asked about the overall purpose of the bill, and was advised by Assemblywoman Von Tobel that entertainment would not be allowed as explained to Assemblyman Perkins in regard to any matters other than food and beverage. Assemblyman Price explained a legislator demonstrated his or her ethics by their actions and providing entertainment would not mean a legislator voted one way or another.

Pursuing the line of questioning, Speaker Dini wanted to know if there was a problem with the way caucuses were set up. Assemblywoman Von Tobel stated she was willing to remove certain language in the bill, clarifying the provisions about entertainment, as she had not intended to affect caucuses. She agreed to look into the revision of the section pertaining to entertainment, and remove them if need be.

Chairwoman Giunchigliani consulted with Michael Stewart, Legislative Counsel Bureau, about the statutes regarding gifts and explained there was no statute at present with a mechanism for returning gifts. She explained many times a legislator did not know from whom a gift came, and perhaps the committee needed to explore how to return them.

She asked if there were questions from the committee, whereupon Assemblywoman McClain asked for clarification on whether the particular bill would be in effect during session only or throughout their term in office. Assemblywoman Von Tobel clarified the bill would be in effect the entire term of the legislator. Chairwoman Giunchigliani addressed the restrictions of the bill, particularly the entertainment portion, and asked Mr. Scott Wasserman about the legal aspects. He explained the difference between unregistered lobbyist and registered lobbyist. A lobbyist was prohibited from giving a gift, whether he was registered or not under the proposed bill.

Assemblyman Perkins questioned the term " registered" and what the language meant in regard to family and corporations when not in session. He asked if a lobbyist after session could simply have a corporate officer offer "entertainment" and then it would not violate the law. Assemblywoman Von Tobel stated the way A.B. 57 read only registered lobbyists were restricted from giving legislators any type of gift. Chairwoman Giunchgliani pointed out Assemblyman Perkins might have found a potential loophole.

Assemblywoman McClain said another loophole was, having been a lobbyist for a local government, she would not be able to buy another Assembly member a gift under this bill as an assemblywoman. Mr. Scott Wasserman explained the legal aspects. He stated the way the law read there would be no exceptions in the language. The bill applied to anyone who had been a lobbyist in the last 3 years. Assemblywoman Von Tobel suggested further clarification was needed on the exemptions of the bill regarding family members or former lobbyists.

Chairwoman Giunchigliani asked for further questions or comments from the public. The following individuals simply requested the record reflect their opposition to A.B. 57: Janine Hansen, President of New Eagle Forum, Merritt (Ike) Yochum, Independent American Party, Francis Gillings, Independent American Party of Washoe County, and Lucille Lusk, Nevada Concerned Citizens.

Chairwoman Giunchigliani asked if there were any other questions or comments. Hearing none, she thanked everyone who had testified and closed the hearing on A.B.57 with no action taken by the committee.

Before opening the hearing on A.B. 130, Chairwoman Giunchigliani, as primary sponsor, turned the chair over to Vice Chairman Price.

This measure repeals the provision in Nevada’s Campaign Practices Act that prohibits a person from making a false statement of fact concerning a candidate or a question on a ballot. The measure also repeals the provision prohibiting certain persons from willfully impeding the success of the campaign of a candidate or the campaign for the passage of defeat of a question on a ballot. Finally, A.B. 130 repeals provisions that give Nevada’s Commission on Ethics jurisdiction over complaints of negative campaigning. This bill is effective on July 1, 1999.

Vice Chairman Price recognized Assemblyman Beers, who announced to the committee and the public he was disclosing for the record his appeal in federal court due to a decision by the Ethics Commission which stated he had violated the truth in campaigning laws. He felt no conflict with A.B.130, and emphasized he wanted no appearance of impropriety. Therefore, Assemblyman Beers said he would abstain from any action on the bill.

Chairwoman Giunchigliani testified in support of repealing certain restricted campaign practices, and read from her prepared statement (Exhibit D). She felt the language of the current law would not stand the test of the First Amendment and must be changed. She expressed her concern about how the statue had been implemented, and the chilling affect on free speech. She further explained the bill would repeal the law from the last session S.B.215 of the 69^th Session. A.B.130 would not condone dirty tricks, lies, and distortions. Chairwoman Giunchigliani testified it was her understanding the legislature should not sacrifice the First Amendment for its lack of conviction and self control. She added, in her opinion, we should cherish the First Amendment, give credit to the voters for their intelligence, and work harder to personally set higher levels of campaign honesty.

Chairwoman Giunchigliani offered to loan a copy of all the testimony on S.B. 215 of the 69^th Session if any wished to review the prior legislation. She clarified A.B.130 would repeal the law and the jurisdiction with the Ethics Commission. She brought up her concerns about the previous law and the fines imposed and stressed fair campaigning. Chairwoman Giunchigliani stated there were people from the Nevada Press Association and the American Civil Liberties Union of Nevada whom she had asked to speak on A.B.130. Vice Chairman Price called Janine Hansen to testify. Ms. Hansen testified in support of A.B.130. She felt the public had tried to regulate free speech to death, and there had been severe and unintended results when the laws did not allow the political process to work fully.

Vice Chairman Price called Mr. Merritt (Ike) Yochum and Mr. Francis Gillings to testify, and both requested the record reflect their support of A.B.130.

Mr. Kent Lauer, Executive Director of the Nevada Press Association, Incorporated, and Mr. Gary Peck, Executive Director of the American Civil Liberties Union of Nevada, were called to testify before the committee on A.B.130. Mr. Peck spoke in favor of A.B.130, as he believed the due process had been robbed from the people with the passage of S.B.215 of the 69th Session, thereby restricting one’s First Amendment rights. He asked to have the law repealed; otherwise, many people would be compelled to go to court, resulting in a waste of time, energy, and resources. Mr. Peck emphasized the law as it was written, reached everyone who had uttered a falsehood, i.e. politicians, journalists, other public officials, and ordinary citizens, not just public officials. The wording eliminated a person’s due process right to be judged by a jury of peers. He stated he would be returning to testify in front of the Senate if the bill passed the Assembly. He remarked he would be happy to make their lawyer available for any questions. If the legislature did not repeal the law, it would set an enormous precedence in terms of reach. According to the current law, anyone could be brought before the Ethics Commission.

Assemblywoman Leslie asked Mr. Peck if the particular bill would cover the issues he raised. He replied the repeal would be a major step forward. The law was, on its face, unconstitutional.

Mr. Kent Lauer also spoke in favor of A.B.130, stating he felt the particular bill would uphold the First Amendment, especially the provision of free speech. He stressed he believed candidates should not have to resort to hiring attorneys. Many times candidates needed to file libel or slander suits if defamed, and he expressed his concern about the press being brought up before the Ethics Commission. Chairwoman Giunchigliani clarified the code of fair campaigning was in existence, and candidates signed it when filing for office. Candidates were to be truthful, honest, and fair, and A.B.130 would not change that.

Vice Chairman Price thanked everyone for being in attendance and asked if anyone was prepared to make a motion.

ASSEMBLYMAN PERKINS MOVED DO PASS ON A.B.130.

ASSEMBLYWOMAN LESLIE SECONDED THE MOTION.

THE MOTION CARRIED WITH ASSEMBLYMAN BEERS ABSTAINING FOR
THE VOTE. ASSEMBLYMAN DINI WAS NOT PRESENT FOR THE VOTE.

Vice Chairman Price asked about the other two bills before the committee tonight. Chairwoman Giunchigliani stated both bills would be posted in a further work session.

There being no further business or comments the meeting adjourned at 7:03 p.m.

RESPECTFULLY SUBMITTED:

___________________________

Jodie Van Wyhe,

Committee Secretary

APPROVED BY:

_____________________________________

Assemblywoman Chris Giunchigliani, Chairwoman