Nevada Attorney General
Capitol Complex
Carson City, Nevada 89710
via FAX 687-5798 and mail
Subject: Economic Development Authority of Western Nevada (EDAWN) IS a Public Body and Must Abide by the Open Meeting Law (ag file 98115)
By no stretch of the imagination (or law) can EDAWN be considered a private body. All citizens who become aware of this bizarre "finding" will be justifiably horrified at the terrible violation of the Open Meeting Law and the "spirit" of the Open Meeting Law.
EDAWN receives public money (TAX)... lots of it... my taxes and your taxes. Period! Camouflaging this fact by trying to call the huge sums of public money they receive "grants" is obfuscation... quibbling.
"... any administrative, advisory, executive or legislative body of the state or a local government which expends or disburses or is supported in whole or in part by tax revenue or which advises or makes recommendations to any entity which expends or disburses or is supported in whole or in part by tax revenue, including but not limited to any board, commission, committee, subcommittee or other subsidiary thereof..."
It is more than ironic that your recent (right on the mark) finding... that the Reno Sparks Convention Authority (RSCVA) has been in violation of the Open Meeting Law... now makes a mockery of this silly EDAWN finding. Not only doesn't this Public Body (EDAWN) not properly describe its agenda items; it doesn't even let citizens see its agenda!!!
Citizens should be made aware of the terrible Conflict of Interest whereby Reno's mayor works (secretly) under EDAWN. Just last year he premeditatedly told Reno city hall to add extra tax money to the bloated coffers of his bosses at EDAWN. (Of course he did not disclose that THEY were his bosses!) So don't tell us that he isn't directly and indirectly influenced by EDAWN... and vice versa. And this is just one of a myriad of reasons why EDAWN meetings must be open to the public... to prevent such perfidiousness.
It is recommended that your office immediately re-visit this noodlehead decision. EDAWN's convoluted structure is subterfuge. Nevada governor, Ken Guinn, has stated officially that he is going to revamp the ethics department of the attorney general. If he were to be made aware of this finding, he would not just limit his wrath to the ethics section.
Do the right thing and order EDAWN to let the people watch its operations... so it will have to cease its shameless secrecy. We hope this appeal to your sense of honesty and good judgment is taken in the context that it is intended to invoke.
Signed:
Sam Dehne, a concerned citizen
297 Smithridge
Reno, Nevada 89502
(775) 825-1398
cc Governor K. Guinn
Senators H. Reid and R. Bryan
News Media
The Complaint:
State of Nevada 9 October, 1998
Attorney General, Frankie Sue Del Papa
Capitol Complex
Carson City, Nevada 89710
via FAX and mail
Attn: Greg Salter
Subject: Request for Investigation Into Ongoing Violations of Nevada Open Meeting Law by Economic Development Authority of Western Nevada (EDAWN)
Dear Mr Salter,
EDAWN has been in violation of the Nevada Open Meeting Law since its inception. EDAWN is, by any logical and honorable description and definition within your well-written Open Meeting Law Manual, a "public body". And, as such, has not been conducting its operations according to the dictates and the spirit of those laws. These violations logically void all of its operations since inception of this Authority.
1. EDAWN is a "public body" as evidenced by a myriad of descriptions and criteria (including the fact that it is primarily funded by tax revenue... grants, etc) depicted in your Nevada Open Meeting Law Manual.
2. Public bodies must abide by the orders of the Open Meeting Law (to include open public meetings, proper agendization, publication, allowing of citizens to attend, public comment, etc, etc, etc). Public body, EDAWN, does not abide by these critical rules. And thus, the citizens who are paying for its operations (directly and indirectly), have absolutely no way to monitor this public body... to make sure it is behaving in the citizenry's best interests... which it often isn't.
3. Reno mayor Jeff Griffin's company, Nevada Foreign Trade Services (NFTS), and EDAWN have conducted activities that are in violation of the Nevada Open Meeting Law.
4. On 28 August, 1998 NFTS filed documents attempting to expand its Foreign Trade Zone (FTZ) Operation (an Operation that, itself, was created in violation of the Open Meeting Law) under the illegally operating EDAWN.
5. As your excellent Manual states very clearly on page 21, it is important for "public bodies" to abide by the Open Meeting Law; "The distinction is important because any action taken in violation of the Open Meeting Law is void and can give rise to great complications".
6. We hereby request that the Nevada Attorney General's office conduct an investigation and take action necessary to void this activity; and all other actions that have taken place since EDAWN's inception.
7. As this investigation proceeds, additional instances of Open Meeting Law violations will be provided.
8. EDAWN's secret machinations are exactly why the Open Meeting Law was created in the first place.
Please feel free to call me, personally, with any questions.
Your prompt attention to this dire matter is requested.
Sincerely,
Sam Dehne
297 Smithridge,
Reno, Nevada 89502
825-1398 FAX 825-1821
State of Nevada 8 October, 1998
Attorney General, Frankie Sue Del Papa
Capitol Complex
Carson City, Nevada
89710
via FAX (687-5798) and mail
Subject: Definition of "Public Body"
Dear Madam Attorney General,
Thank you very much for your very prompt response to my request for definition of a "Public Body"... with the entire Open Meeting Law Manual... a plethora of information.
The purpose of our request was to determine if the monolithic organization by the name of Economic Development Authority of Western Nevada (EDAWN)... an "Authority" (dict: persons, esp. in government, having the power or right to enforce order, laws, etc) ... is a public body.
We have become very intrigued by this organization and would like to know a little more about it.
For your information EDAWN is 40% funded by public funds; including approximately $40,000 from the city of Reno tax coffers this year.
Simply put, the question is: Is EDAWN a public body?
If your answer is "No", please explain how this "Authority" is able to deviate from many clear statements in your Open Meeting Law Manual.
Please feel free to call me with any questions.
Your prompt answer (vis FAX is fine) is requested.
Sincerely,
Sam Dehne
297 Smithridge
Reno, Nevada 89502
825-1398
FAX 825-1821
Nevada Attorney General's Bogus Response:
OMLO 99-05 Open Meeting Law: Economic Development Authority of Western Nevada (EDAWN) is not a public body as defined in NRS
241.015(3), and therefore is not covered by the Open Meeting Law.
(This opinion was rendered by the Office of the Attorney General as a
guideline for enforcing the Open Meeting Law and not as a written opinion
requested pursuant to NRS 228.150). Carson City, January 12, 1999
Mr. Sam Dehne, 297 Smithridge Drive, Reno, Nevada 89502
Dear Mr. Dehne:
This office has primary jurisdiction for the investigation and resolution of complaints regarding violations of the Nevada Open Meeting Law, NRS chapter 241. In October you filed a complaint with this office alleging that the EDAWN does not comply with the Open Meeting Law when conducting meetings of its Board of Trustees or committees.
We have investigated your complaint by interviewing officials of EDAWN and reviewing records and information given to us by those officials as well as a review of relevant statutes and regulations. We conclude that EDAWN is not
a "public body" as defined in NRS 241.015(3), and therefore is not covered by the Open Meeting Law.
The Open Meeting Law applies to public bodies and NRS 241.015(3) defines a "public body" as:
[A]ny administrative, advisory, executive or legislative
body of the state or a local government which expends or
disburses or is supported in whole or in part by tax revenue
or which advises or makes recommendations to any entity
which expends or disburses or is supported in whole or in
part by tax revenue, including but not limited to any board,
commission, committee, subcommittee or other subsidiary
thereof . . . . In § 3.01 of the NEVADA OPEN MEETING
LAW MANUAL(7thed. 1998), after discussing what is a
"body" under the statute, this office observed that the
definition indicates that a public body:
1. Is an "administrative, advisory, executive or legislative body of the state or a local government" which means that the body must (1) owe its existence to and have some relationship with a state or local government, (2) be organized
to act in an administrative, advisory, executive or legislative capacity, and (3) must perform a government function; and
2. Expends or disburses or is supported in whole or in part by tax revenue or which advises or makes recommendations to any entity which expends or disburses or is supported in whole or in part by tax revenue. Applying that analysis to EDAWN, we observe the following facts. 1. According to its Articles of Incorporation, EDAWN was organized in August 1982 as a private nonprofit corporation. Its organizers were seven private citizens. We can find no evidence that EDAWN was created by the order of or otherwise owes its existence to any state or local government body.
2. The Articles of Incorporation provide that the City of Reno, City of Sparks, and Washoe County each may appoint an ex-officio nonvoting trustee to the Board of Trustees, regardless of whether they contribute financially to the corporation. Currently, the Board of Trustees consists of 29 persons, including the nonvoting representatives from Reno, Sparks, and Washoe County. There are approximately 300 paying members of EDAWN. It would not appear that any government agency controls EDAWN.
3. EDAWN is given no authority to act on behalf of any government body. It administers no government programs, passes no legislation or regulations, has no governmental jurisdiction to regulate any activity or impose any taxes.1EDAWN has no power to waive or make any promises to waive any governmental fees or taxes. It cannot make or promise to make any grants, loans, incentives, or any contracts that would be binding on any government.
No government body has appointed or asked EDAWN to provide advice on any governmental matter. When EDAWN speaks to any government agencies, it is doing so of its own accord, not because it has any advisory power. We can
therefore find no evidence that EDAWN was organized to act in an administrative, advisory, executive or legislative capacity.
1EDAWN is the grantee of two Foreign Trade Zones from the U.S. Foreign Trade Zone Board. We evaluated whether that designation implies governmentpowers or can be given only to government agencies. Both federal regulations (15 C.F.R. 400.22) and Nevada law (NRS 237A.020) clearly state that private nonprofit and for-profit corporations can be grantees of Federal Trade Zones, and there is no requirement that grantees have special governmental designations or regulatory powers. We cannot therefore conclude that, by itself, being a grantee of a Federal Trade Zone makes a corporation a public body.4. The Articles of Incorporation state that the purpose of the organization is to promote, develop, implement, and manage all aspects of an economic diversification program to include business retention, the expansion or existing industry, and the acquisition of new industry. The goals of EDAWN, as set out in its 1997 Economic Development Report, include (1) attracting quality business, (2) retaining and expanding quality business, (3) promoting economic health of Reno/Sparks/Tahoe, and (4) enhancing membership value. To accomplish those goals, the organization: conducts market research to identify and target desirable businesses, develops information promoting the area, conducts site visits to private businesses, hosts company visits to area, provides relocation assistance if asked, introduces executives to local professionals, and assists in the development of education programs to improve workforce skills to meet the needs of incoming or upgrading businesses. According to interviews with Mr. Alvey and Mr. Howard, EDAWN promotes the area and assists businesses in obtaining information and making contacts. EDAWN does not subsidize or provide any financial incentives for any relocations. It does not speak for any government. We conclude that these functions are within the dominion of free enterprise, and are not government functions.
5. In its 1999 operating budget, EDAWN is expecting 37 percent of its revenues to include grants from the State of Nevada, City of Reno, Sparks, and Washoe County, although no government is obligated to make any grants or
payments. The remaining 63 percent of the expected revenues comes from private business memberships, donations, and revenues from sales of publications or other activities. Certainly, one can argue that EDAWN enjoys financial support from public bodies.
We conclude that EDAWN does not meet the first test of being a public body. It is a privately formed corporation that was not organized by and does not owe its existence to any government body, was not organized to perform any administrative, executive, advisory or legislative function, and does not perform a government function. While we note that EDAWN is supported in part by grants from public bodies, to meet the second part of the public body test requires more than just financial support. To hold that any entity which receives money from a public body becomes a public body would mean that every charity that receives grants, every government contractor that receives payment for services or products, and every organization to which a government body belongs becomes a public body under the Open Meeting Law. Statutes must be interpreted to avoid absurd results, Alsenz v. Clark Co. School Dist., 109 Nev. 1062, 1065, 864 P.2d 285 (1993), and we think that it would be absurd to bring all those private organizations within the ambit of the
Open Meeting Law just because they receive money from public bodies. A better approach would be to evaluate the connection between the money received and the function being performed by the recipient. If the recipient is receiving the money to perform a government function, as set out in the first test, then a public body would be indicated. In the case of EDAWN, since the grants are not to finance a government function, we do not believe that EDAWN meets the second test of being a public body.
Therefore, it is the conclusion of this office that EDAWN is not a public body as defined in NRS 241.015(3), and therefore is not required to comply with the Open Meeting Law. With this conclusion, we must close our file as
having no jurisdiction over EDAWN under the Open Meeting Law.
We appreciate your bringing this question to us because it is a question that needed examination and resolution.
FRANKIE SUE DEL PAPA Attorney General
By: GREGORY A. SALTER Deputy Attorney General
__________
During my nightly reading of the Nevada Revised Statutes, I came across NRS 241.020; which starts out by saying:
"1. Except as otherwise provided by specific statute, all meetings of public bodies must be open and public, and all persons must be permitted to attend any meeting of these bodies."
It goes on further to say (among other things) the following:
"2. Except in an emergency, written notice of all meetings must be given at least 3 working days before the meeting. The notice must include:
(a) The time, place and location of the meeting.
(b) A list of the locations where the notice has been posted.
(c) An agenda consisting of:
(1) A clear and complete statement of the topics scheduled to be considered during the meeting.
(2) A list describing the items on which action may be taken and clearly denoting that action may be taken on those items.
(3) A period devoted to comments by the general public, if any, and discussion of those comments."
Etc...
I note that there are numerous "bodies" in northern Nevada that sort of try to follow the guidelines of this law. And then there are some that should, but don't.
Please provide me with the definition of a "public body"... and maybe even an example or 2 in northern Nevada.
Please feel free to call me with any questions.
Your prompt attention to this matter via FAX will be appreciated.
Sincerely,
Sam Dehne
825-1398
FAX 825-1821
297 Smithridge
Reno, Nevada
89502
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