Legislator under investigation in campaign contribution case

CARSON CITY -- The secretary of state's office is investigating a complaint that Assemblywoman Kathy McClain violated laws by using campaign contributions for personal uses, such as to cover her retirement costs.

Deputy Secretary of State Matt Griffin acknowledged Friday the investigation is under way, quickly adding that the law prohibits using campaign funds for a "personal use."

But he said the law does not define what constitutes personal use.

McClain, D-Las Vegas, is prevented by the term-limits constitutional amendment from serving another term in the Assembly. She is running for a state Senate seat in a Democratic primary in June against another term-limited Assembly member, Mark Manendo.

Under the campaign contribution law, funds not used on a campaign can be returned to contributors, given to the party or other candidates, donated to charities, used on subsequent campaigns or for payment of expenses related to the public office.

Candidates who use funds for personal use can be fined $5,000 for each violation.

The secretary of state's office first would be required to file a complaint in District Court in Carson City. A judge would decide any punishment.

"I believe they were appropriate expenditures," McClain said Friday. "I am cooperating with the secretary of state. We will leave it up to them to decide whether they were allowable expenses or not."

McClain reported on her campaign expense forms that she spent campaign funds to rent a home in Carson City during the 2009 Legislature.

She also reported she used campaign funds to cover her retirement and health insurance costs several times when she was on leave of absence from her job in Clark County to serve in the Legislature in the 2005-through-2009 sessions.

"I will abide by whatever they decide is right," McClain said.

Griffin said he expects the investigation will be completed quickly.

Investigators are reviewing the following expenditures by McClain:

■ $4,250 to rent a home in Carson City during the 2009 session.

■ $1,945 to the Clark County Risk Management Division in 2009. The division provides health insurance for county employees.

■ $7,276 to pay her Public Employees Retirement System contributions while on leave from her county job last year when she served in the Legislature.

■ $1,900 to the Clark County Risk Management Division in 2007.

■ $4,436 to PERS in 2007.

■ $5,502 to PERS in 2005.