Keith Munro, former Nevada Gov. Kenny Guinn's late-term appointee to the state Gaming Control Board, started a process Wednesday that will lead to his resignation and a new job as chief of staff for the attorney general.
Munro, who had been offered the newly created post in Attorney General Catherine Cortez Masto's office before he accepted a four-year term on the casino regulatory post, said he was willing to complete the resignation paperwork, probably by Thursday, to "end this unusual situation and do what's best for the state."
Asked about the development, Gibbons said, "It speaks highly of Keith Munro to try to resolve this issue."
While Munro's plan appears to solve the immediate problem of two appointees for one position on the panel that oversees Nevada's multi-billion-dollar casino industry, legal issues surrounding the controversy remained.
It wasn't immediately clear whether Cortez Masto would complete a requested opinion on the validity of Guinn's appointment of Munro to the GCB and Gibbons' appointment of Randy Sayre, the Control Board's veteran chief of staff, to the Control Board.
Gibbons said he believes his appointment overrode Guinn's appointment. In any case, there won't be a need for "a long, costly battle" among lawyers debating the issue once the paperwork on Munro is completed, he added.
Because of the clashing appointments, the board met in Las Vegas on Wednesday with just two members, Dennis Neilander and Mark Clayton. Neilander, the board chairman, had asked for the attorney general's opinion and asked Munro and Sayre to stay away from the meeting after consulting with Cortez Masto.
Neilander said he was aware of concerns that the appointment dispute might damage the image of the powerful regulatory panel.
"Obviously, I'm concerned about the image, I'm always concerned about the image," he told reporters. "But as you can see today we're conducting our business as usual."
Gibbons has defended his move to dump Munro, saying it wasn't political. He said he named Sayre in an effort to preserve "the integrity of the most respected gaming institution that we have in this state and, in fact, worldwide."
Gibbons and Guinn had clashed over Guinn's 2003 tax increase plan, and during the 2006 campaign cycle, Guinn shunned party protocol and refused to endorse Gibbons' candidacy.
Gibbons also has denied he took his oath of office at midnight on New Year's Eve in his Reno home to bolster the legal argument that was used by the new Republican governor to undermine the former GOP governor's appointment of Munro, who had been Guinn's chief of staff for the past year.
Gibbons chief of staff Mike Dayton has said Gibbons believes he had the power to appoint Sayre because he took office at the point that the Control Board position officially became vacant.
Gibbons became governor about 12 seconds after midnight, marking the first midnight oath of office in Nevada history.
Gibbons insisted security concerns prompted him to take office as soon as possible. He also said he wanted to share the occasion with his closest friends.