Heller seeks OK to check campaign documents

Monday, Sept. 23, 2002 | 11:01 a.m.

CARSON CITY -- Secretary of State Dean Heller said today he would ask the 2003 Legislature to give him authority to audit the campaign and expenditure reports of political candidates to determine if they are accurate and if there is any misconduct.

Heller, in a news release, said he agrees with recent published reports that the documents filed by politicians need significant changes to become a more useful tool for the public. A spokesman for Heller said the office has no authority to check a campaign report to determine if the figures are correct or if somebody complains about the contributions or expenditures.

In the present campaign, Republican Brian Sandoval has filed a complaint with Heller's office about $160,000 in campaign contributions received by his opponent, Democrat John Hunt, in the race for attorney general. Hunt received the money from Mike Shustek, who operates a company called Vestin Mortgage that was under investigation by the state Financial Institutions Division.

But the division said there was no evidence to file any complaint against Vestin. Heller has asked Hunt to respond to the allegation. Susan Bilyeu, deputy secretary of state for elections, said the office needs the ability to subpoena people and records to investigate allegations of misconduct. She said the cases can be turned over to the Nevada Division of Investigation or the Attorney General's Office for further examination.

But these cases receive low priority. For instance, she said the investigations division took a year looking at a case of a Reno City Councilwoman. Bilyeu said cases of candidates who failed to file their campaign reports a year and a half ago were turned over to the attorney general's office. And they are still not resolved.

At present, Bilyeu said all the office can do is ask people to respond, as in the case of Sandoval-Hunt. It has asked Hunt to reply to the complaint. And she said Vestin may also be asked to reply. But the office doesn't haven anything to go further. If there is misconduct discovered, she said the secretary of state can impose a fine of up to $5,000. In addition to more investigative powers, Heller also said he wants all candidates to file their reports with his office.

At present, only the statewide officers are required to submit their campaign and expense reports with the secretary of state's office. He said he would ask the 2003 Legislature to require these reports to be filed annually, at a minimum, on one form that includes information pertaining to unspent contributions from previous campaigns and contribution in excess of $10,000. At present, candidates file their reports before the primary election and general election and then in January after the election.

If these reports are late or not submitted, Heller can impose fines up to $5,000. "I will once again lend my support to Assemblyman Bob Beers (R-Las Vegas) who plans to re-introduce a bill that would require candidates to disclose their 'cash on hand' from the previous campaigns at the beginning of their current report," Heller said.

Heller said he has been trying to make changes in the campaign and expense reports for eight years but the bills have died in the Legislature. "I can only enact changes that are approved by the Legislature," Heller said. "If lawmakers agree with me that more disclosure is better, then we will see some of the changes that are necessary to make these forms more people friendly," he said.

Assemblywoman Chris Giunchigliani, D-Las Vegas, said Heller's suggestions merit "looking at." She said her Assembly Committee on Legislative Affairs and Operations in 2001 approved a bill to improve the campaign reporting forms but it failed in the Senate. Raggio could not be reached for comment. Giunchigliani said it "makes sense" to give Heller some type of audit authority. But she said with the budget constraints there may not be the money for a major increase in staff. And she cautioned this authority should not be used for a "political witch hunt" during election years. She said she is meeting with Heller's staff next week.

Sen. Ann O'Connell, who heads the Senate Government Affairs Committee that processes the election issues, said she "didn't have a problem" with any of Heller's suggestions. But she questioned how much this would cost.

"I would like to see a fiscal note," said O'Connell, R-Las Vegas. "I don't know about hiring another level of people." She also said she would like to know what type of an audit Heller is suggesting. Most candidates, she said have a CPA prepare their financial reports. Auditors just go in and check the numbers to see if they are correct and are properly added, she said. "If there is anything unethical, I don't see a problem," allowing an audit, she said.