Proposal would make hidden campaign contributions illegal

Wednesday, Jan. 15, 1997 | 11:59 a.m.

Federal law makes it illegal for someone to give another person money to contribute to a candidate, thus hiding the identity of the real donor. But state law has no such provision.

Heller, a Republican, is crafting a campaign finance reform bill and last week won the backing of Democratic Gov. Bob Miller to lower the reporting threshold from $500 to $100 and require parties, caucuses and political action committees to disclose donors.

Some have argued for disclosure of every donation, not just the ones over $100, but Heller said that might be unwieldy and have less chance of passing.

"I don't want a full employment act for accountants and tax attorneys," he said.

In December, Heller called disclosure his first priority and said he wasn't prepared to fight for other changes, such as contributions funneled through another person.

But he said he changed his mind after seeing articles detailing how a Sparks maid and body shop owner donated $10,000 in a state Supreme Court race at the suggestion of the couple's personal injury attorney, Reno lawyer Peter Chase Neumann.

Neumann said he waived part of his contingency fee for an auto accident suffered by Richard Kemp and suggested the Kemps make a contribution to the campaign of Family Court Judge Steve Jones, an unsuccessful challenger to Supreme Court Justice Cliff Young.

Heller decided to include the additional reform "because I believe campaign finance reform has a great chance here, and why not look at all the possibilities?"

The question of people with apparent modest means making significant donations is being investigated at the federal level as part of an investigation into Democratic fund-raiser John Huang. At his suggestion, a woman donated as much as her annual salary to Democratic candidates last year.

Federal officials also are looking into why a Buddhist woman who had taken a vow of poverty agreed to donate $5,000 to the Democratic National Committee at the request of a secret donor.

Donations where the real donor is hidden has been a problem in Nevada, Heller said.

"There is a federal law that does prohibit it, so we looked at their language, talked to legal counsel and decided to include it," he said.

If the Legislature approves Heller's bill, it would become a felony for someone to make a contribution in the name of another. Candidates also would be subject to prosecution if they knowingly accepted a contribution made in the name of another.

In addition, the proposed language will make state law agree with federal law and make it illegal to pay workers to make political donations.