Secretary of state tries end run

The Nevada Constitution could not be more clear. The Legislature meets in regular session for no more than 120 days every other year. Outside of that, lawmakers must be in a special session called by the governor to pass legislation.

Regulations, however, are a different story. And Secretary of State Ross Miller doesn’t see a lot of difference between legislation and regulation, especially if it helps his office collect more tax money.

Mr. Miller appeared before the Legislative Commission, a panel of lawmakers that oversees state business between regular sessions, seeking approval of a regulation that would allow him to collect the state’s $200 annual business license fee on limited liability corporations and other businesses that claim exemption. Home-based businesses that make less than $27,000 per year don’t have to pay the fee.

Mr. Miller, a Democrat, contends that scores of LLCs are falsely claiming the exemption, shorting the state some $10 million per year in general fund revenue. The regulation he wants would limit the income exemption to “natural persons” and require all companies to pay.

Sen. Michael Roberson, R-Las Vegas, observed that Mr. Miller’s office had already tried to achieve the same end — through legislation. The bill died during last year’s regular session.

The commission can’t make law between sessions. Period. And Sen. Roberson pointed out that the commission certainly can’t pass a regulation that runs counter to existing statute.

“The honor system doesn’t work,” Mr. Miller complained. “We are trying to level the playing field. What is happening is not fair to people who are paying the $200 fee regularly.”

Perhaps. But if Mr. Miller feels that strongly about the issue, then he must first change state law, not try to legislate through back-door regulation. He is an executive branch official. There are limits to Mr. Miller’s power.

The argument can be made that legislators exceed their constitutional authority, as well, when they meet as the Legislative Commission between sessions.

But Sen. Roberson got it right here. Regulations are supposed to be administrative rules that enable or enforce legislation, not a means to an end when an elected official doesn’t like what the law says.