Editorial: Open and shut case

Friday, July 8, 2005 | 4:56 a.m.

WEEKEND EDITION

July 9-10, 2005

The state attorney general's office was right Friday to file a lawsuit against the Nevada Tax Commission. Despite earlier advice from the attorney general's office, the commission on Thursday refused to rescind a $40 million decision it had made last May -- behind closed doors in violation of the state open meeting law.

The decision involved the Southern California Edison Co., which operates a power plant near Laughlin. Two years ago the company asked for a rebate of sales taxes it had paid on coal during 2001 to 2003. On May 9 of this year, the tax commission approved a rebate of $40 million. Southern California Edison had requested that the commission close the portion of the meeting related to the hearing of its case. This is a right granted under state law, to protect a company's proprietary and financial information.

The law, however, provides only for the "hearing" to be closed. According to the attorney general's lawsuit, the tax commission granted the power company's request for a closed hearing. But after the hearing was finished, the doors remained closed to the public. The commission members went on to discuss the case and even take a vote approving the rebate, actions prohibited by the state open meeting law.

The commission defends its actions, based on the law allowing closed hearings if requested by a company and other laws protecting the confidentiality of a company's business affairs. But hearings, which can be closed to protect confidentiality rights, are not the issue. The issue is a state agency that shuts the public out of discussions (which would not include any confidential details) and takes a vote, that, by law, is required to be open.

A legal fight, using taxpayer money, is vowed by the tax commission. How much better it would be if the commission would act responsibly. It should void its May vote and reconsider the power company's case, all while following the open meeting law.