Advisory boards not governed by state ethics laws

Friday, June 24, 2005 | 8:45 a.m.

CARSON CITY -- The Nevada Supreme Court on Thursday ruled that members of advisory boards are not governed by the state law regarding conflict of interests.

The court said members of advisory boards or commissions are not public officers and therefore are not covered by the ethics law.

The court dismissed the appeal of Tom Hantges who had sued to challenge Henderson's designation of the 525-acre Tuscany Property as a blighted area, a designation that was used a prerequisite for the area to be classified as a redevelopment district.

The redevelopment issue came before the advisory committee of the Henderson Redevelopment Agency. The advisory committee approved a memorandum of understanding between the redevelopment agency and Commerce Associates LLC, which purchased the property.

The chairman of the advisory committee was Barry Fieldman and also on the committee was Robert Unger. Both men were associated with Makena Entertainment, the managing member of Commerce Associates.

Hantges argued the process was tainted because both Fieldman and Unger had conflicts of interest. Fieldman and Unger excused themselves before any discussion began and they were not present when the vote to approve the plan was approved.

The Supreme Court said, "Even if Unger and Fieldman had been involved in the OPA (Owner Participation Agreement) or redevelopment plan approval, their positions on the advisory commission would not taint the voting."

The court noted that the advisory commission did not have the authority to bind Henderson or the redevelopment agency to any agreement, and no member of the advisory commission is a public officer for the purpose of the conflict of interest law, the decision said

It said: "We determine that it would be impractical to overturn final board decisions when advisory board members have alleged conflicts of interest, yet recuse themselves from any discussions or voting on the matter."

The court upheld the decision of Michael Douglas who was a district judge at the time and is now a Supreme Court justice. Douglas had ruled that citizens have the right to challenge "blight findings" by local governments but that Hantges filed his lawsuit almost a year past the 90-day deadline for bringing legal action.