Is free campaign advice a no-no?

By David McGrath Schwartz

Wednesday, Aug. 11, 2010 | 2 a.m.

The leading candidates in the governor’s race are attracting so much high-dollar talent seemingly willing to work for free that the Nevada secretary of state is curious what’s up.

Two of Republican Brian Sandoval’s top political advisers, Pete Ernaut and Greg Ferraro — who also happen to be among the state’s most powerful lobbyists — say they are working without pay.

Secretary of State Ross Miller sent a letter last week asking political consultant Dan Hart to explain his involvement in Democrat Rory Reid’s campaign.

It’s an issue because candidates are required to not only report monetary donations but also details of non-monetary donations, such as a designer’s efforts to create a campaign logo or an attorney’s legal work. The logic behind the requirement is that professional services have value and thus the donated time should be subject to the $10,000 limit on campaign contributions — meant to prevent any individual or company from holding undue sway over a candidate.

State law is unclear about the voluntary involvement of political consultants, and Miller said he would judge them on a case-by-case basis.

“It appears that the area is not clearly defined,” Miller said. “Candidates are given a wide degree of latitude in how they report or whether they report services they received.”

Both candidates for governor have deep ties to the state’s most powerful interests. Reid, the Clark County Commission chairman, is a partner at the law firm Lionel Sawyer & Collins. Sandoval quickly landed a job at Jones Vargas, one of the state’s other top law and lobbying practices, after he resigned his federal judgeship.

Candidates’ ties to unpaid political strategists have become an issue in federal races, if not in Nevada. During the last presidential election, both John McCain and Barack Obama came under scrutiny for having top corporate lobbyists as senior unpaid advisers.

Bill Allison, editorial director of the Sunlight Foundation, a nonpartisan nonprofit organization advocating for a more transparent government, said federal election law gives individuals broad leeway in defining themselves as volunteers.

But he doubted lobbyists are completely altruistic in their volunteerism.

“The reason lobbyists are willing to donate time,” he said, “is the access and influence they will have assuming their candidate gets elected.”

Miller’s letter to Hart, sent last week, followed a description of Hart in the Sun as an “unpaid adviser” to Reid.

Hart and the campaign did not dispute the description when it first appeared. But Tuesday, both Hart and Reid’s campaign denied that he had any role with the campaign.

“I have not been an adviser, paid or otherwise, to the Reid campaign at all,” Hart said. He is also the political consultant for the Nevada State Education Association, the state teachers union, which endorsed Reid.

Hart, who ran Reid’s County Commission races, was in charge of a third-party group targeting Sandoval during the Republican primary. The ads were funded by $1.1 million from the Democratic Governors Association. The law requires such efforts to be completely separate from candidates’ campaigns.

Hart said when he ran the independent expenditure, “We avoided talking to each other, because it would be inappropriate. There was no coordination, discussions or even casual conversation between anyone involved in the independent expenditure and anyone involved in the Rory Reid campaign.”

Sandoval’s campaign, meanwhile, is being advised by two of the top political advisers in the state — for free. Both Ernaut, president of R&R Partners, and Ferraro, president of the Ferraro Group, have roles advising Sandoval and his campaign.

Sun columnist Jon Ralston wrote Monday in his RalstonFlash that Ernaut “is overseeing the campaign.”

Ernaut and Ferraro said they are friends of Sandoval’s.

“I’m a close personal adviser to Brian,” Ernaut said. “He seeks my counsel on campaign decisions, but he makes the ultimate decision.”

Sandoval’s spokeswoman, in a statement Tuesday, downplayed the role of Ernaut and Ferraro. “Pete Ernaut and Greg Ferraro are two of dozens of folks that Brian utilizes on a series of subjects. Many of them have known Brian since college.”

Indeed, his campaign is paying Mike Slanker, Sen. John Ensign’s former top political consultant, to run the day-to-day operations.

But when Sandoval officially announced last year that he had left his lifetime appointment on the federal bench to run for governor, he told the Reno Gazette-Journal that it was Ernaut and Ferraro who had persuaded him.

In the past, Ernaut and Ferraro have been paid for their political work. Ernaut ran former Gov. Kenny Guinn’s campaigns as well as Ensign’s. Ferraro worked on Guinn’s campaign and Gov. Jim Gibbons’ campaign four years ago.

Both have successful lobbying businesses. Ferraro’s clients include the Nevada Resort Association and NV Energy. Ernaut and R&R Partners (where the CEO is Billy Vassiliadis, a Democrat and senior adviser to Senate Majority Leader Harry Reid, Rory Reid’s father) represent major gaming, mining, development and health care interests in the state.

Both Ferraro and Ernaut say their relationships with Sandoval predate either’s forays into politics.

Ferraro said, “I didn’t know Jim Gibbons as a personal friend,” Ferraro said. “I think the role I play right now is as personal friend, adviser and input-giver.”

Ernaut said he would help Sandoval regardless of his past political experience.

“I’ve known Brian since 1982. I know his family, I know his integrity, I know he’ll be a fantastic governor,” he said. “If I was a window washer, I’d be working on this campaign.”

Miller acknowledged it is a fuzzy line between required disclosure and free speech.

“You don’t want it to be so burdensome it will chill political participation,” said Miller, a Democrat running for re-election. “I get all kinds of input. There are lunatics who think their advice is worth $1,000 an hour, and it’s not worth anything.”