Senate, Assembly change rule to let lawmakers vote on tax and spending package

CARSON CITY — After being sidetracked most of the day by conflicts of interest that jeopardized Republican votes, the state Senate approved a rule change to allow all members to vote on a budget and tax package late Wednesday.

Senate Minority Leader Bill Raggio, R-Reno, and Sen. Warren Hardy, R-Las Vegas, had said earlier they might be forced to abstain from voting because of business relationships with people who had lobbied on the package.

A combination of sales, payroll, business and car tax increases has been proposed to raise the $781 million in additional revenue that’s needed to fund the $6.8 billion spending plan.

Under the ethics resolution proposed in a 10 p.m. floor session by Senate Majority Leader Steven Horsford, lawmakers would not be prevented from voting on “legislative measures of immense statewide importance which globally impact all citizens of this state,” such as the budget.

“I believe all legislators should have the ability to execute their sworn constitutional duty to balance the budget of the state and represent the interests of Nevada’s citizens,” said Horsford , D-Las Vegas.

Sen. Mark Amodei, R-Carson City, voiced the only objection, saying the measure was likely to be viewed as a convenient political maneuver on the eve of a critical vote.

“The timing of this, and the context of it, is unmistakable,” he said.

The measure passed with only Amodei voting against it.

A parallel resolution passed the state Assembly soon after.

Though it was resolved in a matter of hours, the ethics brouhaha threw a wrench into lawmakers’ tight schedule to pass a budget this week.

Raggio’s announcement in an afternoon Senate session that he would not be able to vote on the tax package came as a surprise.

In a lengthy oration, Raggio said he supported the tax package and wanted to vote for it, but would be prevented by a legal opinion from legislative counsel that found a conflict of interest with his job as partner in a large statewide law firm.

Raggio’s firm, Jones Vargas, employs lobbyists at the Legislature, one of whom was asked to testify on an aspect of the tax package in a hearing last week. That action creates a conflict that under Senate rules requires Raggio to abstain from voting on the bill, according to Legislative Counsel Brenda Erdoes.

“I will follow the opinion. I will abstain,” Raggio said. “I will do so reluctantly, because my first obligation here, under the oath I took, was to do what’s right for this state.”

Raggio blamed activists seeking to thwart the tax package for threatening to make an issue of the conflict in order to derail a vote.

Lobbyist and political operative Robert Uithoven, head of the Western Alliance Fund, a conservative political action committee that has been airing radio ads opposing tax increases, brought the legal opinion to light. But Uithoven denied Raggio’s charge that he threatened to file an ethics complaint.

Earlier Wednesday, Hardy, who had been negotiating for Republicans to change public employee benefits, pulled out of the talks. Hardy said he heard he could be subject to a complaint because of his relationship with the Las Vegas Chamber of Commerce, which has lobbied on the benefits and tax bills. Chamber Chairman Steve Hill holds a ceremonial position on the board of the builders group of which Hardy is president.

Hardy was replaced in the negotiations by Sen. Randolph Townsend, R-Reno. The reform bill is scheduled for hearing this morning.

The proposed reforms to benefits for government workers hired in the future include increases in minimum retirement age and number of years worked to earn a pension.

Republicans say the reforms currently proposed don’t go far enough to limit the state’s obligations.

The tax package will need 14 of 21 Senate votes to pass. Democrats hold a 12-9 majority in the Legislature’s upper house.

As of 11 p.m. Wednesday, the Senate was still in session, with a hearing and vote on the tax package potentially ahead before the end of the night.

Legislators hope to get the budget to Gov. Jim Gibbons by Friday. That would give Gibbons five days to act on his threat to veto the tax hikes and give lawmakers hope to override a veto before the June 1 end of the legislative session.

Contact reporter Molly Ball at mball@reviewjournal.com or 702-387-2919.