FEC slaps the wrists of Nevada Democrats

      WASHINGTON -- The Nevada State Democratic Party violated federal campaign laws in 1992 by spending excessively on congressional candidates, including Sen. Harry Reid, D-Nev., according to the Federal Election Commission.
      But commissioners have decided not to take action against the party, deeming the violations not serious enough under the agency's new enforcement priority system.
      Among other things, a 1991-92 FEC audit of the party concluded:
      --Party spending for Reid's successful re-election campaign exceeded federal limits by $34,593. Reid defeated Republican Demar Dahl of Elko County.
      --Party expenditures for Pete Sferrazza of Reno exceeded federal limits by $17,250. Sferrazza lost to Rep. Barbara Vucanovich, R-Nev., who retired last year.
      The audit also cited the party for improperly spending $70,298 on congressional races with money from a fund designated for other uses. Of the $200,841 spent from its petty cash fund, the party provided no documentation to support $21,093 of the expenditures, FEC officials said.
      Finally, the party understated its receipts by $36,385 and disbursements by $40,976 and overstated its cash on hand by $626. But the party corrected the misstatements by filing amended reports, the audit noted.
      Reid answered the allegations Tuesday with a short, prepared statement from his press secretary, Jenny Backus.
      "Based on our preliminary review of this FEC report, the audit found nothing that required further action by the FEC. The FEC has the authority to levy fines or order remedial measures in cases where it believes there have been violations of federal law,'' the statement said.
      The FEC presented the report to the Democratic Party on June 16, 1994. In response, party officials disagreed with the totals, but did not provide information needed for a subsequent report on the audit, the FEC said.
      In a Feb. 21 statement to the five FEC commissioners, agency General Counsel Lawrence M. Noble urged the dismissal of the Nevada case and 11 others. He reached that conclusion after rating the cases under an enforcement priority system adopted by the FEC in September 1996.
      "By closing these 12 cases, this office will be better able to focus its resources on the more significant cases, generally presidential matters," Noble said. "Moreover, these closings will enable us to process the 1996 presidential audits in a more efficient manner."
      Six days later, the commission voted unanimously to accept Noble's recommendation.
      The FEC audit comes on the heels of a $10,000 fine paid by the Nevada State Democratic Party last year for failing to file seven reports on time in 1994 and 1995. A telephone call Tuesday to the party's office in Las Vegas was not returned.
      As for the Nevada Republican Party, it paid $1,200 in February 1996 for filing its 1994 year-end report 128 days late.