Common Cause president questions Miller trust fund

Monday, April 13, 1998 | 10:02 a.m.

CARSON CITY -- The president of Common Cause says there should be an examination of the law that allows politicians to create secret trusts, such as the one established by Gov. Bob Miller.

"As a general principal undisclosed money is always a problem for public officers," James Hulse, newly installed president of Common Cause, said.

Hulse, however, added that Miller deserves credit for coming forward and releasing the names of the contributors who gave $71,000 to allow the governor and his staff to travel outside Nevada.

The governor, through his press secretary Richard Urey, Friday revealed who donated how much showing the Las Vegas casino industry played the major role.

There were $10,000 contributions from Barrick Gold Mines and the Nevada Cancer Center in Las Vegas. Donations of $5,000 came from IGT; Fiesta hotel-casino; Primadonna hotel-casino; Southern Wine and Spirits; Gold Coast hotel-casino; Barbary Coast hotel-casino; Harvey's; Station Casinos; and the Rio hotel-casino.

Leo Volpe, the only individual listed, gave $1,000.

Urey said the trust was established in 1996 to pay for Miller's out-of-state travel when he was elected vice chairman and then chairman of the National Governors Association. The governor, Urey said, did not want to ask for taxpayer funds.

The existence of the trust was not disclosed until this month when Miller filed his financial disclosure statement for 1997, showing he received $8,000 from the "governor's trust."

Urey initially referred questions about the trust to Todd Bice, a Las Vegas attorney who drew up the trust and said it complied with Nevada's ethics laws. Bice said he did not know who the trustees were.

It was later disclosed Bice's law partner Frank Schreck was a trustee. Schreck represents many of the major casinos in Las Vegas and is a top political fund-raiser.

When Miller was asked about the trust, he said he had no problem with releasing those who gave. There is nothing in the law that requires he reveal those names.

"The law may not be adequate and we ought to take a look at it," Hulse said Saturday.

Secretary of State Dean Heller earlier expressed concern, saying these secret funding arrangements do not inspire trust in public officials. Heller, who is in charge of campaign financing reports, said there appears to be nothing in the law to cover these secret funds.

Deputy Attorney General Louis Ling, who advises the state Ethics Commission, said Miller correctly reported the $8,000 he received from the "governor's trust." He said Miller was not required to list those who gave to the trust.

Ling said he has not reviewed the overall question about the legality of these secret trusts.

Urey said in the past the governor was able to spend unused campaign funds for the out-of-state travel. But the governor, who is barred from seeking another term, has run out of campaign funds.

"He (Miller) realized he would be hit with one of the most expensive times in office (by heading the national organization)," Urey said. "He did not want to burden the tax coffers."

Heller suggested Miller should have approached the Legislature first about getting the money. And he said the governor should have sought a legal opinion from either the attorney general or the state Ethics Commission whether these secret funds were legal.