Contract for Loux legal fees deferred

The contract to pay $20,000 in legal fees to defend former Nuclear Projects Director Bob Loux before the Ethics Commission was delayed Tuesday after Gov. Jim Gibbons objected to the payment.

"The point is whether taxpayers of the state of Nevada should be paying to defend somebody for violating the law," said Gibbons during the Board of Examiners meeting. "Whether the state should be representing Mr. Loux or prosecuting him under the statute."

But Attorney General Catherine Cortez Masto said the state has no choice.

"At this point in time we are obligated to provide this defense," she said.

Masto said either a private lawyer or her office has to provide Loux with legal defense before the ethics commission. If her office represents him, she said, it would be a conflict to later go after Loux for repayment of the excess money he paid himself or to prosecute him criminally. She said she would prefer to represent the state instead of Loux.

Gibbons disagreed that the state is required to represent Loux.

"In this case, Loux knew his conduct was outside the course and scope of his duties," he said.

Secretary of State Ross Miller, the third member of the Board of Examiners, asked to defer a vote on the contract, saying he wanted to study the issue before voting. Masto and Gibbons agreed.

Loux was fired by the Nuclear Projects Commission after he increased his and his staff's salaries above the amounts authorized by the Legislature.

He raised the salaries of six people including himself, paying for the added cost by dividing up the salary appropriated for a vacant position in the Nuclear Projects Office.

Loux argues he was authorized to manage his own staff salaries by then-Gov. Kenny Guinn.

"Governor Gibbons' office did not advise me that he wished to change this procedure nor was I provided with any rules and policies that indicated I was to proceed differently," Loux argued.

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