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Nevada hearing on AB79 would clarify PAC spending, campaign fund rules and reporting
Summary
The Assembly committee heard testimony on Assembly Bill 79, a Secretary of State-sponsored bill to clarify limits on PAC spending, adopt the Federal Election Commission's "irrespective" test for allowable campaign expenses, tighten disposition and reporting rules for unused campaign funds and streamline the complaint/hearing process.
Secretary of State Cisco Aguilar and Chief Deputy Gabriel De Cara presented Assembly Bill 79 to the Assembly Committee on Legislative and Operations, outlining multiple changes intended to increase transparency in Nevada campaign finance law.
"My 3 guiding principles for the upcoming biennium are modernization, innovation, and transparency," Secretary of State Cisco Aguilar said, introducing the bill and saying it focuses on transparency in campaign finance.
The bill, as presented, would (1) clarify what political action committees (PACs) may spend money on; (2) require candidates and former public officials to notify the Secretary of State when they dispose of remaining campaign funds; (3) adopt the Federal Election Commission's "irrespective" test to judge whether campaign funds may be used for certain personal expenses; (4) revise the statutory definition of a political committee; (5) require a person who receives $100 in donations before filing to notify the Secretary of State of intent to run; and (6) create a hearing and appeal process for campaign finance enforcement modeled on an existing securities-division process, and clarify special-election contribution limits.
De Cara characterized the FEC standard as a tool to allow certain ordinary expenses in limited circumstances: "We firmly believe that in certain circumstances, the use of campaign funds for things such as child or elder care are more than appropriate, but the most effective way to do this is by formalizing the FEC standard." He explained the "irrespective" test would exclude costs that would have existed irrespective of candidacy from being paid with campaign funds.
Supporters on the public record said the changes could lower barriers to running for office. Ryan Vordish, Northern Nevada democracy coordinator for Silver State Voices, testified: "The size of an elected officer's personal wallet should not be a barrier to serving office." Carissa Pierce of Children's Advocacy Alliance also voiced support, noting the practical effect on candidates who are parents.
Opponents warned of increased reporting burdens and the potential for expanded dark-money activity. Janine Hanson, State Chairman of the Independent American Party, testified that rising reporting requirements can discourage participation and may suppress contributions to nonestablishment or third-party candidates. Joshua Skaggs, Legislative Affairs Director for the Nevada Republican Party, expressed concern about proposals that would exclude certain nonprofits from the PAC definition and said such exclusions could expand undisclosed political spending.
Committee members asked detailed questions about implementation and unresolved points in the bill. Assemblymember Monroe Barredo asked why the amendment removes the requirement that a person list which office they intend to run for when filing intent; De Cara replied the change is intended to avoid repetitive filings when candidates change intended offices and to prioritize oversight of fundraising over the particular office. Assemblymember Cole asked about the childcare and small-business questions; De Cara reiterated the intent to adopt the FEC "irrespective" test rather than enumerate specific allowed expenses in statute.
Several details remained to be clarified in follow-up drafting. De Cara could not give a definitive answer on the exact timeframe for disposing of funds after a candidate loses, saying a staff member in the Senate work session would have the precise answer. The Secretary's office also said it was open to harmonizing AB79 with other pending bills that address similar statutory sections.
The committee did not take a final vote on AB79 at this hearing. The Secretary of State's office said it will accept written questions and is available for follow-up as the bill is amended.
Ending: The hearing closed after public testimony and committee questions; proponents urged passage to increase accessibility and transparency, while opponents requested safeguards to avoid burdensome reporting and unintended expansion of undisclosed spending.
