In Nevada, it is crucial for candidates and political action committees (PACs) to file their campaign finance reports promptly, as failure to do so may result in hefty fines that can reach up to $10,000.
A pressing issue has arisen, as the Nevada Secretary of State’s Office reported over $440,000 in fines connected to campaign finance infractions in just the first eleven months of 2024. Among the notable violators is the PAC affiliated with Nevada Attorney General Aaron Ford, which has accumulated fines exceeding $20,000, based on the records provided by the office.
Despite these significant fines, most remain unpaid, with many likely to be waived or reduced. This ongoing situation prompted the Nevada Secretary of State’s Office to contemplate reforms to the penalty system during this legislative session.
Currently, the only way for state authorities to enforce these fines is through legal action—a process that is both resource-heavy and has not been pursued by Secretary of State Cisco Aguilar in his first two years.
Furthermore, the existing fine structure can disproportionately affect candidates in lower-ranking or unpaid positions.
While the specifics of the proposed amendments have not been revealed, state officials have indicated that the legislation aims to enforce penalties more consistently and provide clearer options for waiving fines for those who inadvertently broke the rules.
These proposed reforms seek to ensure the campaign process remains transparent, hold individuals accountable for their legal violations, and prevent the law from being unduly harsh. Aguilar expressed optimism about finding a balanced approach and collaborating with legislators on effective solutions.
Historically, the office has issued millions in fines for campaign finance violations; however, only a small fraction of these amounts has been collected.
Since the 2008 fiscal year, the office has failed to collect more than $37,000 in campaign finance fines within a single fiscal year. In the 2020 election cycle, over $2 million in fines were assessed under then-Secretary of State Barbara Cegavske, but more than half went unpaid. Only about $21,000 was collected in full, while many fines were reduced or waived.
Per Nevada law, candidates and PACs that submit their campaign finance reports late face fines ranging from $25 to $100 for each day of delay, with a maximum of $10,000 for a single violation.
Those who incur fines may appeal for a waiver, which the secretary of state’s office considers in conjunction with the attorney general’s office. Factors such as past infractions and circumstances like public emergencies or attempts to rectify mistakes are taken into account before a waiver is granted.
A different process exists for PACs, as they are not required to file campaign finance reports if they did not raise or spend any money during a reporting period. This leads to challenges in determining whether these groups are being truthful, prompting the secretary of state’s office to seek improved auditing practices for PACs listed as donors on other reports.
From the beginning of 2024 through November, fines have been imposed on 190 candidates and groups, including 11 facing over $10,000 in fines. One significant offender is Nevada’s Future PAC, linked to Ford, which accrued more than $21,000 for failing to file reports for the first three quarters of 2024, despite raising $42,500 and spending $10,000 in that timeframe.
Zoe Kleinfeld, Ford’s spokesperson, stated that he is addressing this situation with the secretary of state’s office, as he is thought to be a likely contender for governor in 2026.
In the recent fines assessed in 2024, state legislators included Sen. Roberta Lange, a Democrat from Las Vegas, who owes $250, and Assemblywoman Tanya Flanagan, also from Las Vegas, who owes $25. Flanagan indicated she is appealing her case as the circumstances arose from an emergency involving staff. Lange opted not to comment on her fine.
Despite these higher fines, many were imposed on lower-ranking candidates, including those in unpaid roles who mistakenly received assessments that exceeded the $100 cap for late submissions.
For instance, Derek Stonebarger, a candidate for the Beatty Water and Sanitation Board, was fined over $18,000 for late reports, even though he did not raise or spend any funds in his unpaid position.
Having engaged with the secretary of state’s office, he managed to reduce his fine to $250, which corresponds to penalties for delayed annual financial disclosures.
“I’m just relieved that I didn’t have to pay the 17 grand,” Stonebarger remarked.
This clearly illustrates the complexities and challenges inherent in Nevada’s campaign finance system, underscoring the necessity for reform to foster accountability while ensuring fairness in the enforcement of penalties.
