Lobbyist being lobbied by both parties in pivotal Senate seat

Author: Ralston, Jon

Publication info: Las Vegas Review - Journal [Las Vegas, Nev] 03 Feb 1994: 9b.

Abstract (summary): When [Bill O'Donnell] announced he was going to challenge Clark County Commissioner
Don Schlesinger, [Steve Sisolak] immediately began sniffing around about his seat. The Democrats, including
Minority Leader Dina Titus, were thrilled. Titus has been trying to remake the Senate Democratic Caucus' image
from Wackos 'R Us to Reasonable Is Our Middle Name. Sisolak, a small businessman respected by legislators
and lobbyists, was a perfect fit.
Then, last week, GOP state Sen. Randolph Townsend invited Sisolak to lunch. When he arrived at Cafe
Michelle on Friday, Sisolak was greeted not only by Townsend but by fellow GOP candidate-dissuader and Sen.
Sue Lowden and Townsend's new wife, Robyne Brooks Townsend. A triple team, if you will.
Which can only mean one thing. Lowden and Townsend were the front-line troops. Sooner or later, the GOP
general, Reno's Bill Raggio, will offer his sales job to Sisolak.

Full text: Steve Sisolak is learning a little bit about role reversal. He made his living during the 1993 Legislature
as a lobbyist trying to persuade lawmakers to reform the state's telemarketing laws. Now, the lobbyist is being
lobbied by the politicians.
The issue is not nearly as complex as what Sisolak confronted last year: ensuring all the loopholes are closed in
the laws that govern his livelihood. It's simple. The Democrats want him to run for Bill O'Donnell's state Senate
seat, and the Republicans would rather he not.
What makes this so interesting is not only the behind-the-scenes intrigue, but how O'Donnell's seat could be the
key (along with Diana Glomb's in Reno) to supremacy in the Senate, which the GOP now controls, 11-10.
When O'Donnell announced he was going to challenge Clark County Commissioner Don Schlesinger, Sisolak
immediately began sniffing around about his seat. The Democrats, including Minority Leader Dina Titus, were
thrilled. Titus has been trying to remake the Senate Democratic Caucus' image from Wackos 'R Us to
Reasonable Is Our Middle Name. Sisolak, a small businessman respected by legislators and lobbyists, was a
perfect fit.
So Titus and other Democrats, including state Sen. Matthew Callister, performed the usual ego inflation trick
("You're the greatest candidate we've ever seen and you will win") and Sisolak was primed.
Then, last week, GOP state Sen. Randolph Townsend invited Sisolak to lunch. When he arrived at Cafe
Michelle on Friday, Sisolak was greeted not only by Townsend but by fellow GOP candidate-dissuader and Sen.
Sue Lowden and Townsend's new wife, Robyne Brooks Townsend. A triple team, if you will.
This was a new experience for a telemarketer who usually gives the pitches. The selling was relentless. Run for
Assemblyman Bill Gregory's vacant seat, they pleaded. Wait two years, switch parties and GOP state Sen. Ann
O'Connell will retire. Run against Democrat state Sen. Lori Lipmand Brown and we'll sneak you some money in
the primary - wonder how GOP Assemblywoman Kathy Augustine, who covets Brown's seat, would feel about
that?
The deeply caring Republicans also fretted about the effects of a campaign on Sisolak's family and insinuated
he would never get any plum committee assignments. "We just thought we'd give him our insight," said
Townsend, his words muffled by the tongue implanted in his cheek. "I think he now has a more well-rounded
knowledge."
Sisolak, after informing Titus and Callister of the GOP overtures at a breakfast meeting Wednesday, said he
was complimented by the effort. But he is not deterred. "I still want to run," he said.
As for O'Donnell, he said Wednesday, he is "80-20 sure" he's going to seek re-election. Sisolak said while he
entered the race believing O'Donnell was vacating the seat, he has made commitments and plans to stay in the
contest.
Which can only mean one thing. Lowden and Townsend were the front-line troops. Sooner or later, the GOP
general, Reno's Bill Raggio, will offer his sales job to Sisolak.
Now, I wonder if that kind of telephonic arm-twisting is covered under the new telemarketing law.
- Got the bug: Karen Korcheck, a top aide to Attorney General Frankie Sue Del Papa, is mulling a bid for
secretary of state. "It's something I'm considering," confirmed Korcheck, who was Del Papa's chief deputy in the
secretary of state's office and is now the attorney general's executive assistant. Korcheck said she thinks she
will need to raise as much as $150,000 for the contest. She also said Del Papa has been encouraging.
Korcheck would confront a primary challenge from Democratic state Sen. Tom Hickey. That might not be
insurmountable because Hickey is not a household name. But he would be the favorite.
Second, if Carson City Assemblyman Dean Heller follows through on his exploration of a bid to inherit Cheryl
Lau's job, he would be a viable opponent.
- Bank update: More news on that new bank being organized by a board of directors that includes state Sen.
Sue Lowden and Mercy Inc. chief Bob Forbuss.
The organizers of Commercial Bank of Nevada are led by Dr. William Stephan, a founder of Continental
National Bank. John Gaynor, a former Continental vice president, will become the chief executive and president
of the new venture. The bank's board also includes attorney Andras Babero, architect Robert Fielden and
entrepreneur Jerry Polis. The bank hopes to open an office later this year. Jon Ralston publishes "The Ralston
Report," a political newsletter. His column appears Tuesday, Thursday and Sunday.
Telemarketing: A new push to clean up operations, image
Author: Havas, Adrian
Publication info: Las Vegas Business Press 10.23 (Jul 26, 1993): 3.

Abstract (summary): By some accounts telemarketing is Nevada's third largest industry, with annual revenues
of between $200 million to $700 million, depending on who is being quoted. These earnings are behind only
gaming and mining. People in the industry say there are four telemarketing centers in the United States: Buffalo,
N.Y., Miami, San Diego-Los Angeles and Las Vegas. The industry has geographic linkages; many Las Vegas
telemarketers are owned by or related to those in Buffalo. Telemarketing companies typically offer a "chance
promotion," a gift ranging from cash to expensive cars. The companies can then request the purchase of
consumer products. But under law they can't require the purchase of the products. (excerpt)
Full text:
By some accounts telemarketing is Nevada's third largest industry, with annual revenues of between $200
million to $700 million, depending on who is being quoted. These earnings are behind only gaming and mining.
People in the industry say there are four telemarketing centers in the United States: Buffalo, N.Y., Miami, San
Diego-Los Angeles and Las Vegas. The industry has geographic linkages; many Las Vegas telemarketers are
owned by or related to those in Buffalo.
Telemarketing companies typically offer a "chance promotion," a gift ranging from cash to expensive cars. The
companies can then request the purchase of consumer products. But under law they can't require the purchase
of the products.
The industry also has a serious image problem one that fails to improve with time. Law enforcement authorities
report a raft of posecutions since January geared to curtail deceptive practices.
The Legislature, too, got fed up with deceptive sales, an issue it has dealt with repeatedly over the past decade.
Lawmakrers at the last session shifted enforcement powers from the Consumer Affairs Division to the attorney
general, which has better investigators and other legal reesorces at its disposal.
The lawmaking process was bolstered by the Nevada Supreme Court, which ruled that the 1989 law was too
vague, especially regarding the definition of seller.
Painting all telemarketers as shady operators is inaccurate, though, say tbose with good records. Steve Sisolak,
a partner in Las Vegas-based American Distributing Co., testified before lawmakers to this fact. Sisolak's
compony is located at 2959 Industrial Road and sells custom-imprinted products for advertising.
"The good guys follow the laws and the bad guys do as they please," Sisolak said. "You can't, unfortunately,
legislate good business practices. What you need is fair law and good enforcement, and that hasn't been the
case in tbe past."
He noted that Nevada was one of only five states where enforcement was not in the hands of the attorney
general. This in turn made the state attractive to shady operators.
Consumer Affairs Division chief John Kuminecz, a former Nevada Development Authority vice president, was
tight-lipped about how the new law will affect the industry. There are some things in flux," he said.
(Insiders say the division is disgruntled at having had its enforcement function taken away. These days, where
telemarketing is concerned, the division functions mostly as the place where firms must register.)
Myram Borders, who ran the Consumer Affairs Division until last September, said she thinks the revised law is a
step forward.
"I think they passed a good law," Borders said. "It reads really well."
But there are more than just words on paper to regulate the industry. Recent actions against Las Vegas-based
telemarketers, many initiated by the Federal Trade Commission have taken a serious bite out of their business.
* Federal authorities raided Pioneer Enterprises, which sold vitamins and water purifiers, and forced a $1.5
million settlement. The company, located at 4495 W. Hacienda Ave., is still in business.
* In January the Federal Trade Commission's Seattle office charged Sierra Pacific Marketing Inc. and Legacy
Unlimited, located at Jones Boulevard and Sahara Avenue, with engaging in deceptive prize-promotion
schemes. The companies, which sold vitamins, water purifiers and other consumer products and were owned
by Steven M. Rowe, lied to consumers and failed to disciose material information, court documents show.
Documents gleaned from the companies showed annual sales of $37 million. Sales transactians averaged
3,250 per week.
New consumers paid an average $524 "Reloaded" consumers, those who bought more cosmetics, vitamins,
"environmentally safe" cleaning products or water purifiers paid an average $999 per transaction.
A federal court judge ordered the companies stop their deceptive sales practices.
"Our region was seriously affected," said FTC staff attorney Tracy Thorleifson. "Most of the consumers in our
experience were elderly."
* A complaint against Professional Marketing Inc. and its president, Glen Burke, was brought by the state
Commerce Department. A May 5 settlement stipulated the company, located at 4460 W. Hacienda Ave., pay a
fine of $88,700 and a promise to end its deceptive practices which included misrepsenting the value of gifts or
products sold. The company, which is listed on the NASDAQ exchange as Tellus Industries, also agreed to
refund money.
* Another complaint was brought in January against S.E.C. Enterprises Sales Inc., American Health Associates
and related companies which had seven offices in town, the main one at 5000 W. Oakey Blvd. This cpmpany
also sold similar consumer products: vitamins, and skin cream.
Court-appointed receiver John Mowbray took over the affairs of of S.E.C. Enterprises in February. Sales
operations sputtered on until March 31.
"They we dealing in almost 50 states, with customers of all ages," Mowbfay said of the company.
* These actions were separate from the March 1993 raid by the FBI on 53 businesses in 12 states called
"Operation Disconnect." The raid tesulted in more than 100 arrests, including three in Las Vegas. Five
telemarketing companies in Las Vegas were served with search warrants.
The fact that the federal government had to clean up Nevada's mess exasperated many lawmakers, including
Sen. Matt Callister, D-Las Vegas. the author of the original telemarketing law of 1989. He and Sen. Len Nevin.
D-Sparks, wrote the latest law.
But like the mythical Hydra, once one head is cut off another reappears in its place. The latest wrinkle is
telemarketers saying they represent charities. Salespeople ask for a hefty donation of money in exchange for
gifts.
A spokesman for the Better Business Bureau said the agency is working with the attorney general's office to
determine whether such firms are passing themselves off, illegally, as non-profit corporations.
American Distributing Co.'s Sisolak said he was aware of this new hybrid.
"Telemarketers are always trying to stay one step ahead of the law," Sisolak said. "Unfortunately, unscrupulous
operators take advantage of naive people. And everyone suffers."