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Apr. 19, 2008
Copyright © Las Vegas Review-Journal

Judge decides two petitions follow rules

By SEAN WHALEY
REVIEW-JOURNAL CAPITAL BUREAU

CARSON CITY -- A Carson City district judge declined Friday to stop supporters of a pair of initiative petitions aimed at reallocating "excess" Las Vegas convention authority revenues to other uses, including education, from trying to qualify it for the ballot.

Judge Bill Maddox ruled from the bench after a three-hour hearing, finding that the two measures being bankrolled by Las Vegas Sands Corp. Chairman Sheldon Adelson comply with initiative petition guidelines.

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The ruling was a defeat for Clark County local governments and the convention authority, entities that had challenged the wording and legality of the two initiative petitions in an effort to stop them from being circulated.

Las Vegas attorney Todd Bice, representing the entities, said the decision will be appealed to the Nevada Supreme Court.

But any decision on appeal will likely come well after the May 20 deadline for turning in the 58,836 signatures needed to qualify the measures for the November ballot.

And Robert Uithoven, a Las Vegas Sands political consultant, said there is no doubt enough signatures will be collected in all 17 counties to qualify both measures.

One of the measures would take excess room tax funds from the Las Vegas Convention and Visitors Authority and direct the money solely to education.

The second measure would take the money and direct it to education, transportation and public safety in equal amounts.

Using fiscal year 2006-07 as a base, any revenues in excess of this amount, less an annual increase for inflation, would be diverted to the Legislature for the identified programs.

The measures are both constitutional amendments, meaning they would have to be approved by voters twice, in 2008 and 2010, before they could take effect. If voters approved both, the one getting the most votes would become law.

The petitions would affect only Clark County initially because they limit room tax diversions to counties with a population of 800,000 or more.

Maddox expressed concern that the measures are aimed at amending the state constitution, rather than making changes to state law.

But he said voters can make the decision on whether to place such a proposal into the constitution where it would be difficult to change.

Bice raised a number of challenges to the petitions. He said they violate a requirement that such measures restrict themselves to a single subject. He also challenged the petition descriptions, saying they did not fully explain what was being asked of voters.

The real issue isn't funding education, but capping revenues for the convention authority because of Adelson's belief that it competes with his own convention business, Bice said.

"Don't play these games about education enhancement," he said.

Bice also suggested that the measures would divert nearly $25 million in the first five years from county and city parks and recreation projects, another consequence that is not made clear to petition signers.

Bice said the Nevada Constitution should not be amended or money diverted from the convention authority because of the concerns of a "bored millionaire."

Adelson is a billionaire.

Attorney Scott Scherer, representing the Las Vegas Sands, rejected the arguments raised by Bice. He said the petitions do follow the single-subject rule. The language in them is clear and concise, he said.

The issues raised by the local governments were intended only to stop the petitions from reaching the ballot, Scherer said.

The entities "are simply trying to run out the clock," he said.

Maddox didn't reject the challenge brought by the government entities based on an argument by petition supporters that they were violating state law by spending tax dollars to support or oppose a ballot question.

Bice said that restriction applies to questions that have already qualified for the ballot.

Representatives from most of the major casino corporations have voiced opposition to the petitions. Gaming leaders said they don't want to divert money used to market Las Vegas at a time when massive expansion is taking place on the Strip and a national economic downturn is curtailing U.S. tourism.

The convention authority now receives about $200 million per year in room taxes.

Former state Treasurer Bob Seale, who is heading what the petition backers are calling the School Funding Solutions Ballot Advocacy Group, said when the measures were filed in February that the revenue stream to education and the other priorities would be small at first.

Revenues would increase dramatically as additional hotel rooms open in Las Vegas, he said.

Contact Capital Bureau reporter Sean Whaley at swhaley@reviewjournal.com or 775-687-3900.

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Please enter your name Name: Please enter your email Email: Please enter a comment COMMENTS : (word count limit is 300) You have reached the maximum number of words allowed Current Word Count: ths wrote on April 19, 2008 09:18 AM: It is amazing how everyone thinks that every government entity is corrupt. Perhaps look at how the LVCVA has generated so much other tax revenue in this community. All conventions have taxable revenue from rental of items to the taxes that are generated by the attendies. The LVCVA generates its own revenue by filling the rooms. So now why are people saying that they should not be supported by taxes. The taxes that support them are generated by them. 2cents wrote on April 19, 2008 07:54 AM: CORRUPT GOVERMENT Will the real Slim shady plz stand up CORPORATE WELFARE AT ITS BEST wrote on April 19, 2008 07:29 AM: If you PRO LVCVA people had a clue of this group of Buddies who create positions for one another. These people have no accountability. Look at the South Hall Expansion, over budget and time, What a Joke. The Director a Facilities used to be the Janitor. This putting friends in high positions goes on and on. LVCVA is a great example of an upside down pyramid. chuckb wrote on April 19, 2008 07:16 AM: Look out Rossi Rallenkotter, Jim Gans, Mark Olson, Terry Jicinsky, Vince Alberta, John Bischoff, Mark Haley, Chris Meyer, Brenda Siddall and Cathy Tull. all of these Vice Presidents. There's not enough time to list the Directors. The Taxpayers of this state are coming to get you. But, you guys will get rid of the janitors and gardeners before yourselves. wayne wrote on April 19, 2008 07:09 AM: The money that comes from the room taxes goes to promote Vegas many aspects. Convention bring millions in revenue. REMEMBER WHEN TOURIST BUY SOMETHING THEY PAY TAXES. Now the visitor count will go down because LVCVA can't promote Vegas, that means lower taxes to government. So we lose more. People are so blind. Rich people don't care about us; government cares about. The LVCVA brought Vegas to Waht it is. It even made Adelson rich; we remember Comdex. He sold it and made millions. Come on people lets do whats best. LVWHEELDEAL@AOL.COM wrote on April 19, 2008 07:08 AM: macau,casino's pay 33% in gaming tax. how ever do they find all that money when they cant pay 9% here in vegas. they must not have a bought and paid for casino run legislature in macau. I know vegas is at the top over every bad list in the nation so i am sure we are at the top when it comes to CORRUPT GOVERMENT. Lisa wrote on April 19, 2008 06:52 AM: Adelson's initiatives are not about casinos paying taxes - they are about the LVCVA competing with The Venetian and Adelson not wanting to pay taxes. There is another petition that pushes the gaming tax from 6.75% to 9.75% with the difference going to education. This initiative would directly tax the casinos (something the legislature is too fearful to do). Adelson doesn't want that (although in other states and Macau, the tax on gaming is in the double digits) so Adelson is trying to kill 2 birds with one stone. Wayne wrote on April 19, 2008 06:50 AM: Well Adelson did it again he made more people miserable. don't people see that he trying to bring this town down. Remember if Vegas goes he still rich because of his Macau properties. I hope the Chinese Government confiscates his properties and make a national communist government casino. SEE IF THE NEVEDA POLICY RESEARCH INSTITUTE FIGURE THAT ONE OUT. GO AWAY ADELSON VEGAS WILL DO FINE WITHOUT YOU. Helen Weils wrote on April 19, 2008 06:32 AM: I'm with Adelson on this one. Why should taxes foot the bill for advertising the casinos? It's made one advertising agency rich at taxpayer expense. Rather than raise taxes on anyone, this is a sound solution. Pony up casinos, we're tired of footing your bills!!