Campaign finance reform laws take effect this week

Cy Rayn

Monday, Nov. 25, 1996 | 11:59 a.m.

CARSON CITY -- New political campaign-financing rules take effect Wednesday, including one to limit the money political parties and caucuses can pour into a candidate's campaign.

Under current law, political parties and caucuses enjoy a special exemption that permits them to give unlimited sums to state and local candidates.

But passage of Question 10 on the Nov. 5 ballot amends the Nevada Constitution so that political parties and caucuses will be restricted the same as everyone else.

The practice of unlimited political-party contributions created a controversy this past election when the state Republican Party funneled at least $170,000 into County Commissioner-elect Lance Malone's campaign.

The sources of the money were never disclosed, although some critics believe Sands owner Sheldon Adelson gave the money to the GOP to contribute to Malone.

Party officials denied the full amount came from Adelson, who has not commented on the issue. Malone has said he does not know who gave the money to the party.

Caucuses representing the state Senate and Assembly also gave large sums to legislative candidates.

Nevada Republican Chairman John Mason said the constitutional changes will not have a chilling effect on contributions to the party.

"We have more and more people willing to give money," he said.

Mason said the party this election collected $2.2 million, double the amount contributors gave two years ago.

The state Republican Party will use future contributions for candidate training and advertising, he said.

Question 10 also will place strict constitutional limits on campaign contributions. The current law allows candidates for statewide offices to accept $10,000 from individuals and $20,000 from corporations, labor unions or political action committees. The new constitutional amendment limits contributions to $5,000 for the primary and general elections.

Candidates for local and legislative offices can now accept up to $2,000 from individuals and $10,000 from corporations, labor unions and PACs. The new limit is $5,000 per election.

Special-interest groups such as labor unions also will be prohibited from giving unlimited "in-kind" services, including direct mail and television advertising.

Secretary of State Dean Heller said political parties and other special-interest groups "will be limited like everyone else."

"The amendment finally levels the playing field," Heller said. "All contributors are treated exactly the same, and opportunities for the laundering of campaign contributions are reduced."

Heller said money that candidates receive between Wednesday and Jan. 15, when campaign finance reports are due, will fall under guidelines detailed in Question 10.

"The important thing is that they adhere to the new laws for any money received after Nov. 26," he said.

Heller said his office will introduce bills in the 1997 Legislature to implement the new constitutional language and to make further changes in campaign disclosure laws.

Until the Legislature approves the laws, excessive contributions will be considered unconstitutional, Heller said.

"We wanted to give candidates advance notice of the changing rules immediately," he said. "Tuesday is the last day for the old rules -- period."

He said his office will issue a written interpretation on the impact of Question 10, which voters in November approved by a 71-29 percent margin. It passed in 1994 77-23 percent. Two public votes are required to amend the constitution.