Commission on Ethics exonerates Loux

The Nevada Commission on Ethics on Thursday cleared former Nuclear Projects Director Bob Loux of charges he broke the rules by raising his own pay.

They did so on a 3-2 vote, with the majority pointing out that the charges levied against Loux were wrong because they said he raised his pay "above the legislatively approved" amount.

Commissioners George Keele, Don Klassic and James Shaw agreed that, since the legislature doesn't approve salaries for employees in the governor's office, that charge can't stand.

"It should have said, 'Did he give himself a pay raise above the governor's approved salary,'" said Klassic.

Keele made the motion, saying, "I don't believe the Legislature ever approved or confined Mr. Loux to a specific salary."

Since there was no legislatively approved salary, he said they can't convict Loux of the charge.

Two members disagreed, arguing that while the charge was flawed, Loux clearly paid himself more than he was approved to receive without permission.

"The record's clear that the budget was exceeded," said Bob Weise, sitting on the case for John Marvel, who recused himself. "I'm not comfortable with the fact there is absolutely no evidence that Mr. Loux was authorized to do this other than his testimony."

Chairman Mark Hutchinson agreed the charge was flawed and should have simply said Loux raised his own pay without authorization. But he said when the governor's office submitted salary figures to the Legislature to build the Nuclear Projects Agency budget, they became legislatively approved.

The law allows the governor to adjust salaries in his office without legislative approval.

Loux said the decision wasn't a technicality. He said he has argued all along that he had permission to manage his own salary.

The governor's office and budget office both testified Loux was never given authority to raise his own pay. But Loux argued one staff member signed off on that policy.

Gov. Kenny Guinn testified he didn't grant that power to Loux, as did all five of his chiefs of staff and two chiefs of staff who have served Gov. Jim Gibbons.

Loux was accused of raising his pay and the pay of his staff members in 2008 by using the salary budgeted for a vacant position. He was fired from his job after it was discovered his actual pay received was above what had been approved for the position in 2006-2008. The budget office issued charts indicating he received over $60,000 more than he should have.

- Contact reporter Geoff Dornan at gdornan@nevadaappeal.com or 687-8750.