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STATE OF NEVADA

BEFORE THE NEVADA COMMISSION ON ETHICS

In re Debra March, Mayor, Ethics Complaint


City of Henderson, Case No. 17-36C
State of Nevada, Confidential
Subject. /

DEFERRAL AGREEMENT

1. On January 17, 2018, a review panel authorized the Executive Director of


the Nevada Commission on Ethics (“Commission”) and Debra March (“March”), Mayor of
the City of Henderson, to develop this Deferral Agreement (the “Agreement”) to address
the alleged conduct at issue in Ethics Complaint No. 17-36C (the “Complaint”) instead of
referring the Complaint to the Commission for further proceedings.
2. At all material times, March served as a City Council Member for Ward II 1
of the City of Henderson, Nevada, and was an elected public officer as defined in NRS
281A.160. The Ethics in Government Law (“Ethics Law”) set forth in NRS Chapter 281A
gives the Commission jurisdiction over March as an elected public officer whose conduct
is alleged to have violated the provisions of NRS Chapter 281A, as amended by Senate
Bill 84 of the 79th Session of the Nevada Legislature (2017) (“S.B. 84”). 2 See NRS
281A.280.
3. This Agreement is entered into based upon the January 17, 2018 Panel
Determination that March’s alleged conduct may be appropriately addressed through the
terms and conditions of a deferral agreement instead of referring the Complaint to the
Commission for further proceedings.
4. The Panel Determination was based on facts established by sufficient
evidence to support just and sufficient cause for the Commission to render an opinion in
the matter. The facts used by the Review Panel to make its determination are summarized

1 March was elected as Mayor in April 2017 and assumed office on June 20, 2017.
2 S.B. 84 amends and enacts various provisions of NRS Chapter 281A, which statutes have yet to be
formally codified.
Deferral Agreement
Complaint No.17-36C
Page 1 of 8
in Appendix A (“Facts Relied Upon by the Review Panel”) 3, but do not represent facts
stipulated to by the parties.
5. The parties acknowledge that no findings have been made by the Review
Panel or the Commission that March violated the Ethics Law, and it is understood that
this Agreement does not constitute an admission by March of any violation of the Ethics
Law.
Procedural History
6. On or about September 6, 2017, the Commission received Complaint No.
17-36C from a member of the public (“Requester”).
7. On October 23, 2017, staff of the Commission issued a Notice to Subject
under NRS 281A.440(2), stating that the Commission accepted jurisdiction to investigate
the alleged violations of the following provisions of the Ethics Law:
NRS 281A.400(2) - Using public position to secure or grant
unwarranted privileges or preferences to benefit any business
entity in which there is a significant pecuniary interest, or any
person to whom there is a commitment in a private capacity.
NRS 281A.420 - Failing to sufficiently disclose or to abstain from
acting on matters concerning acceptance of a gift or loan, pecuniary
interest, or commitment in a private capacity to the interest of
another person that is reasonably and materially affected by an
official matter.
8. On or about November 22, 2017, March, through her legal counsel, City
Attorney Josh M. Reid, Esq., provided a written Response to the Complaint.
9. On January 2, 2018, the Executive Director presented a recommendation
relating to just and sufficient cause to a three-member review panel pursuant to Section
4 of S.B. 84.

3 The Facts Relied Upon by the Review Panel does not constitute part of the “Investigative File” as that
term is defined by NRS 281A.440(17), as amended by S.B. 84. All statutory and common law protections
afforded to the Investigative File shall remain and are not affected by this Agreement.

Deferral Agreement
Complaint No.17-36C
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10. A Panel Determination issued on January 17, 2018 concluded that:
a. There is sufficient credible evidence to support a determination that just
and sufficient cause exists for the Commission to render an opinion in
the matter regarding the allegations pertaining to NRS 281A.400(2) and
NRS 281A.420(1) with regard to March’s failure disclose her relationship
with the Henderson Community Foundation (“HCF”) during Henderson
City Council meetings on the following dates: November 17, 2015; April
5, 2016; June 7, 2016; November 1, 2016; December 6, 2016; and April
18, 2017;
b. There is not sufficient credible evidence to support a determination that
just and sufficient cause exists for the Commission to render an opinion
in the matter regarding the alleged violation of NRS 281A.420(3); and
c. March’s alleged violation of the Ethics Law may be appropriately
addressed through the terms and conditions of a deferral agreement
instead of referring this Complaint to the Commission for further
proceedings.
Terms and Conditions
11. This Agreement shall be in effect for a period of one year (the “Deferral
Period”) from the date of approval by the Review Panel.
12. March must comply in all material respects with the provisions of NRS
Chapter 281A during the Deferral Period without being the subject of another ethics
complaint arising from an alleged violation which occurs during the Deferral Period and
for which the review panel determines that there is just and sufficient cause for the
Commission to render an opinion in the matter.
13. March shall support and attend any Ethics Law training and education
programs provided by the Commission’s Executive Director, or her designee, specifically
for the members of the Henderson City Council during the Deferral Period.
14. March now understands that volunteer service with a nonprofit organization
may constitute a commitment in a private capacity to the interests of that organization
that implicates the Ethics Law, and she shall seek legal advice from the City Council’s

Deferral Agreement
Complaint No.17-36C
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Approved as to form by:
FOR NEVADA COMMISSION ON ETHICS

DATED this 27th day of March , 2018. /s/ Tracy Chase


Tracy L. Chase, Esq.
Commission Counsel

The above Deferral Agreement is approved by the Review Panel. 4

DATED March 27, 2018 .

By: /s/ Barbara Gruenewald


Barbara Gruenewald, Esq.
Commissioner

By: /s/ Amanda Yen


Amanda Yen, Esq.
Commissioner

4 A quorum of the three-member Review Panel approved this Deferral Agreement.


Deferral Agreement
Complaint No.17-36C
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Appendix A – Facts Relied Upon by the Review Panel

The Henderson Community Foundation (“HCF” or “Foundation”) is a 501(c)(3)


non-profit community foundation in the State of Nevada established in 2002 to connect
philanthropic interests with community needs. HCF creates endowment funds to support
a variety of local nonprofit organizations through grants and special projects serving as a
pass-through organization for local charitable foundations and partners to receive
donations. HCF’s Board of Trustees (“Board”) consists of nine members. The HCF Board
Members make decisions regarding the operations of the HCF.

March served on the HCF Board between 2007 and July 2015. She attended
approximately nineteen (19) Board meetings between 2007 and 2011, attended no Board
meetings after 2011 and served on an ad hoc Grants Committee while she was a Board
member. The ad hoc Grants Committee meets once a year to review competitive grant
proposals and make recommendations to the HCF Board. March estimates that she spent
approximately five hours per year serving on the ad hoc Grants Committee.

In 2015, HCF established a Chairman’s Council (“Council”) to assist the Board with
the guidance of HCF. According to the HCF Bylaws, the Board of Trustees of HCF “may
designate Honorary Members to serve on a Chairman’s Council in an advisory role.”
Members of the Chairman’s Council serve a three-year term and may be called upon to
“provide guidance, help procure resources, advocate on behalf of HCF and serve on HCF
committees.” The Council does not meet as a body to conduct business or make
decisions, but Council members are invited to attend social functions sponsored by HCF.
As Honorary Members of HCF, members of the Chairman’s Council are not officers of the
HCF and they have no voting powers and no board authority.

Shortly after March resigned from the HCF Board, she was appointed to the
Council in July 2015. After her appointment to the Council, she has had no involvement
in the operations of the HCF, nor has she attended any HCF Board meetings. Since 2015,
she has volunteered on two occasions to serve on the ad hoc Grants Committee in an
advisory role and attended one end-of-year holiday reception held by HCF in 2015. March
also made four donations to HCF in 2016 and 2017.

Public Fund Disbursements by the Henderson City Council

Pursuant to NRS 268.028, the Henderson City Council can allocate public funds
to nonprofit organizations and governmental entities that provide substantial benefit to the
residents of the City of Henderson. When the Mayor or City Councilmembers want to
request a disbursement of public funds to a community program or nonprofit organization,
they must complete a City of Henderson Community Projects Fund Disbursement
Request Form (“Request Form”). The Request Form includes a section where the
requesters must indicate if they are a current officer, member or employee of the recipient
organization or if they will receive a direct benefit from the disbursement.

The allegations in the Complaint arise out of March’s participation in several City
Council agenda items that came before the Henderson City Council. As outlined below,

Deferral Agreement
Complaint No.17-36C
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March voted on several items without disclosing her volunteer service for or donations to
the HCF.

November 17, 2015 City Council Meeting

Agenda Item CA-28 required the City Council to consider a Community Projects
Fund Disbursement Request, in the amount of $2,500, from Councilman Sam Bateman
to the Competitive Grant Program of HCF to help fund critical needs of organizations that
are serving Henderson residents.

April 5, 2016 City Council Meeting

Agenda Item CA-29 required the City Council to consider a Community Projects
Fund Disbursement Request, in the amount of $1,000, from Councilman Sam Bateman
to HCF to help fund the 'critical needs' organizations that serve Henderson residents.

June 7, 2016 City Council Meeting

Agenda Item CA-32 required the City Council to consider two Community Projects
Fund Disbursement Requests from Councilman Sam Bateman (in the amount of $2,300)
and Councilwoman Debra March (in the amount of $4,700) to HCF for the APPLE
Partnership, 5 a City of Henderson program to support reading initiatives at Henderson
schools and SafeKey sites throughout the City and to provide resources to help children
learn to read and give kids a chance to succeed in life. On the Request Form submitted
for this agenda item, March did not indicate that she was a former officer of the
organization receiving the funds, HCF, as the form only asks requesters to indicate
whether they are currently an officer of the recipient organization. March was absent from
this City Council meeting and did not vote for this item.

December 6, 2016 City Council Meeting

Agenda Item CA-19 required the City Council to consider a Community Projects
Fund Disbursement Request, in the amount of $2,500, from Councilwoman Gerri
Schroder to HCF to help fund the critical needs organizations that are serving Henderson
residents.

5 The APPLE (All People Promoting Literacy Efforts) Partnership has been funded in the past by

disbursements of public funds by the Henderson City Council. APPLE is a City of Henderson program
created in 2004 to bring community resources to schools, teachers and parents in a proactive way to help
families help children learn how to read. APPLE is considered a “component fund” of HCF, which is
responsible for holding, managing, investing and reinvesting all funds and donations for APPLE pursuant
to the terms of a Fund Disbursement Agreement.

Deferral Agreement
Complaint No.17-36C
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April 18, 2017 City Council Meeting

Agenda Item CA-17 required the City Council to consider a Community Projects
Fund Disbursement Request, in the amount of $2,500, from Mayor Andy Hafen to HCF
for the APPLE Partnership to provide books to help children learn to read.

June 6, 2017 City Council Meeting

Agenda Items CA-30 required the City Council to consider a Community Projects
Fund Disbursement Request in the amount of $500 from Councilwoman Gerri Schroder
to HCF for the APPLE Partnership to support reading initiatives at Henderson schools
and SafeKey sites throughout the City to provide resources to help children learn to read
and give kids a chance to succeed in life. Agenda Item CA-33 required the City Council
to consider a Community Projects Fund Disbursement Request, in the amount of $3,000,
from Councilwoman Debra March to HCF for the APPLE Partnership to provide books for
APPLE baskets at local businesses, doctor's offices and restaurants throughout
Henderson, and to provide resources to help children learn to read. On the Request Form
submitted for this agenda item, March did not indicate that she was a former officer of the
organization receiving the funds, HCF, as the form only asks requesters to indicate
whether they are currently an officer of the recipient organization. March provided the
following disclosure at the June 6th meeting:

Mayor Hafen, I need to make a disclosure on two items, Thank you, um yes on
item CA-30 and CA-33, uh, that allocate money from the City Council Community
Projects Fund towards the APPLE Partnership. The APPLE Partnership is a
program started by the City of Henderson and the Clark County School District in
2004 that supports reading and literacy programs in our public schools. The City
has provided financial support to this program well before I joined the City
Council. The Henderson Community Foundation, a 501(c)(3) nonprofit
organization, holds a fund for the APPLE Partnership program and the agenda
items CA-30 and 33 direct funds from the City Council’s Community Projects
Fund to the APPLE Partnership Fund held by the Henderson Community
Foundation. I need to disclose that I served as an unpaid volunteer member of
the Board of Directors of the Henderson Community Foundation, ending that term
in 2015. I am currently an unpaid volunteer member of the Henderson Community
Foundation’s Chairman’s Council, which is an advisory board for the Foundation.
As an Advisory Board member, I am not an officer, an employee, or a member of
the Foundation. Additionally, as an advisory member, I do not take part in the
Foundation’s financial or operational decisions. Agenda items CA-30 and 33
merely continue the City Council’s long term support of the APPLE Partnership
which started well before my service on the City Council and the Board of the
Directors of the Henderson Community Foundation. Nevertheless, the ethics
rules require that I disclose my relationship with the Henderson Community
Foundation before voting on these agenda items. My prior and current
associations with the Foundation do not prevent me from voting on these agenda
items as they will not materially affect my independence or judgment relating to
these agenda items.

Deferral Agreement
Complaint No.17-36C
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