FOR IMMEDIATE RELEASE
DATE: March 27, 2007
CONTACT: Nicole Lamboley or Matt Griffin, (775) 684-5705

Legislation on Legal Defense Funds Proposed

Carson City, NV – Secretary of State Ross Miller announced today his proposed legislation that would clarify state law regarding legal defense funds established by candidates and elected officials.

Current Nevada law does not specifically permit or prohibit candidates or elected officials from soliciting money for specially designated funds to cover legal expenses.

"I made a commitment to the people of the State of Nevada that I would advocate for more transparency in our campaign finance laws. As evidenced by my recent inquiries of the Legal Defense Fund established by Governor Jim Gibbons, it is clear that there are loopholes in our laws that allow elected officials and candidates to solicit money that is not required to be disclosed to the public," said Secretary of State Ross Miller. "In a letter to Governor Gibbons confirming that I found no violation of current campaign finance and disclosure laws," he added, "I announced I would be seeking legislation regarding the disclosure of such funds for the direct or indirect benefit of elected officials or candidates."

The legislation proposed by Secretary Miller would allow a separate fund to be established by an elected official or candidate to defray attorney’s fees and other related legal costs incurred for the elected official’s or candidate’s legal defense if the elected official or candidate is subject to one or more civil or criminal proceedings or administrative proceedings arising directly out of the conduct of an election campaign, the electoral process, or the performance of the elected official’s governmental activities and duties; requires that before any contributions can be solicited, that the fund and its purpose be registered with and approved by the Secretary of State’s office; requires quarterly reporting of contributions and expenses; and establishes penalties for violators.

"The people have a right to know when significant sums of money, outside of political campaigns, are contributed for the benefit of elected officials and candidates. I look forward to working with the Legislature toward making Nevada’s contribution disclosure laws more transparent," said Miller.

On March 6, 2006, Governor Jim Gibbons filed an amended Financial Disclosure with the Secretary of State revealing that he had received monetary gifts totaling $169,000 for the Gibbons Legal Defense Fund.