April 17-18, 1987
BOARD OF REGENTS
UNIVERSITY OF NEVADA SYSTEM
April 17, 1987
The Board of Regents met in a special meeting on the above date
in Rooms 201-202, Donald Moyer Student Union, University of
Nevada, Las Vegas.
Members present: Mr. Daniel J. Klaich, Chairman
Mr. James Eardley
Mr. Joseph M. Foley
Mrs. Dorothy S. Gallagher
Mr. Chris Karamanos
Mrs. Joan Kenney
Mrs. Carolyn M. Sparks
Members absent: Mrs. Jo Ann Sheerin
Mrs. June F. Whitley
Others present: Chancellor Mark H. Dawson
President Joseph N. Crowley, UNR
President John Gwaltney, TMCC
President George Hidy, DRI
President Robert Maxson, UNLV
Dr. Warren Fox, Vice Chancellor
Mr. Donald Klasic, General Counsel
Ms. Mary Lou Moser, Secretary
Chairman Klaich called the special meeting to order at 1:05 P.M.,
stating that the purpose of the meeting was to consider a pro-
posal received from Old College requesting affiliation to its
school, including the School of Law, with the University of
Nevada System. One additional item also was included on the
1. Approved an Upper Limit for a Bond Issue for DRI
Approved raising the upper limit of a request to seek a bond
issue approved by the Board on April 2, 1987 for the Dandini
Research Park at DRI from $4.5 million, not to exceed $5
million. The increase was needed to provide for flexibility
in covering the costs for bonding service, engineering re-
view, and for Department of Public Works assistance. These
expenses were not provided for within the initial $4.5 mil-
lion limit. DRI intends to structure the building design
and construction concept to minimize its costs. Therefore,
it was projected that the entire $5 million would not be
used unless absolutely necessary.
Mrs. Gallagher moved approval to raise the upper limit for
a bond issue for the Dandini Research Park at DRI from $4.5
million, not to exceed $5 million. Mrs. Kenney seconded.
2. Considered Proposal for Acquisition of Old College
Chairman Klaich stated that on April 10, 1987, he received a
proposal from the Board of Trustees of Old College request-
ing affiliation of its school, including the School of Law
and School of Humanities, with the University of Nevada Sys-
tem. (A copy is filed with the permanent minutes.) Because
of an urgency on the part of Old College, the special Board
meeting was called to consider the proposal.
Mr. Klaich read into the record a letter from Senator Paul
Laxalt, dated April 16, 1987, requesting serious considera-
tion of the proposal. (Copy filed with the permanent min-
Dr. Allan De Giulio, President of Old College, distributed
a letter addressed to the members of the Board of Regents
from the Board of Trustees of Old College, dated April 17,
1987, filed with the permanent minutes, referring to two
recent studies which point out the need for a law school in
Nevada, and pledging assistance during a transition period
should the System decide to absorb Old College.
Mr. Bill Boyd, a trustee for 3 years, discussed the quality
of the students at Old College, citing that a number had
passed the Nevada Bar exam. He urged that the law school
be established at UNLV, and stated he felt there was a good
deal of community support available in Las Vegas for the
Mr. Warren Nelson, Chairman of the Board of Trustees, pre-
sented an overview of Old College. The College began in
1980 with a humanities school with classes held behind the
Catholic Cathedral in downtown Reno. As the College grew,
a permanent structure was necessary, and the Gannett build-
ing became available. Gannett agreed to give the building
to the school, although the deed has not yet transferred
inasmuch as Gannett is still awaiting authorization from
the Internal Revenue Service. Old College renovated the
building with a $1.254 million grant which also included
acquisitions for the library. Mr. Nelson described the
facility as worth approximately $8.2 million, and assured
the Board that if UNS decided to acquire Old College, the
building also would be transferred to the System.
There is as yet an undetermined debt owed by Old College
through a loan with First Interstate Bank, secured by the
signatures of a number of the trustees of Old College. The
building cannot be used as collateral for the debt inasmuch
as the deed has not been transferred to Old College.
Mr. Nelson stated his concern is for the students who have
graduated, particularly those who have been in the Law
School. He emphasized that current studies done by Old
College for accreditation purposes indicate that there is
a need for a law school in Nevada. Further, he stated the
courses taught are geared to Nevada law and gaming in par-
ticular, which students going to out-of-state schools do
not receive. The Nevada Supreme Court decision allows Old
College graduates to take the Bar exam when they graduate.
However, the State of Nevada does not allow an attorney to
practice law unless he has graduated from an accredited law
In discussing accreditation of the law school, Mr. Nelson
stated that the American Bar Association (ABA) is concerned
that the Gannett deed of trust for the building has not been
forthcoming. Old College will appear before the ABA April
23 and 24, 1987, for an accreditation hearing.
Mr. Nelson urged the Regents to consider the acquisition of
In answer to a question from Regent Foley, Mr. Nelson stated
he could guarantee that the Gannett property would transfer
to the UNS should the Regents agree to absorb Old College,
and that he would volunteer to continue discussions with
Gannett on this matter.
Mr. John Flanigan, a trustee for 5 years, related that Old
College has made a good deal of progress, having paid the
price of starting law and humanities schools. He spoke of
the substantial library, the solid curriculum and the good
faculty at the College. As a trustee, he stated the demands
of the College have reached beyond their capabilities, and
that the ABA would only be satisfied if Old College were
affiliated with UNS.
Dr. Elaine Wynn, Chairman of the UNLV Foundation, related
that she has high regard for Mr. Nelson and the trustees of
Old College, and their considerable generosity. She urged
the Regents to throroughly investigate and analyze the need
for a law school at this time, stating that probably some
time in the future a school would be needed. She pointed
out that the integrity and accountability of the Board has
strengthened the System; that the prioritized needs of the
System have enabled the Foundation to draw on community sup-
port. Dr. Wynn also stated that the State Legislature is
looking to the Board for leadership in higher education.
During a legislative public hearing in Las Vegas, Dr. Wynn
and Mr. Steven Wynn testified concerning the need for in-
creased salaries of System employees. They are working with
the Clark County School District to recruit teachers to the
Las Vegas area.
Dr. Wynn urged the Board to retain its credibility by stand-
ing by the priorities as currently established and to focus
on these priorities. She stated that when a law school is
established, she felt it should be housed at UNLV but that,
in light of other priorities, such a school is premature.
Mr. Robert Hibbs, former member of the Board of Governors of
the American Bar Association and practicing attorney in Reno
and Las vegas, stated he was testifying as an individual.
He has served on evaluation teams for the ABA. These teams,
chosen by a formula, consist of a director of a law school,
2 members of law schools, 1 law librarian and 1 lawyer or
judge. Schools are evaluated every 7 years.
Mr. Hibbs complimented the prestigious group of Nevadans who
had a dream for a prestigious law school in the State. How-
ever, he said he felt this is a dream which cannot be a-
chieved through Old College. He stated he felt Nevada can-
not afford Old College and cannot afford the stigma of less
than a 1st-class law school; that Old College is not ac-
credited and is now asking to be rescued. Mr. Hibbs stated
he has discussed Old College with Dean James White, Indiana
School of Law, who is the head of the ABA accreditation team
for Old College, and questioned whether there would be a
difference in the decision to accredit the College if trans-
ferred to UNS and the response was negative. Dean White
informed him that if UNS did acquire the College, an ac-
creditation visit would be in order at that time. Also,
Dean White relayed that while the accreditation report was
confidential, the Regents could request a copy.
Mr. Hibbs suggested several areas the Regents should explore
prior to a decision on Old College: admission standards,
LSAT scores of students, retention of students, faculty
teaching experience and publishing ability. Mr. Hibbs re-
lated that the ABA team did not accept the financial records
as presented by Old College and subsequently had its own
accounting firm conduct an audit. Dr. De Giulio stated
that the ABA wanted to have a "Big 8" accounting firm do
its audits, and that Old had received a "clean audit" from
the firm, a copy of which was sent to Regents last week.
Of the 13 faculty, Dr. De Giulio stated only 2 do not have
a teaching background. He stated they would have the ABA
sent a copy of the accreditation report to the Regents. He
urged that Regents review the Old College study on the need
for a law school in Nevada, stating that the UNS study is
now 10 years old.
He related that the only item keeping Old College from ac-
creditation is the question of financial stability and felt
it would be much easier for UNS to acquire the accredita-
tion. Also, he related that the Northwest Accrediting As-
sociation would visit Old College the following week for
consideration of regional accreditation.
Speaking as an individual, Mr. Roland Miller, a practicing
attorney in California and Nevada, suggested the Regents
not base their decision on history, but on the issues: 1)
Does Nevada need a law school? 2) Does the University
System want a law school? 3) Can the University System
afford a law school? If the answers to these 3 questions
are in the affirmative, then consideration should be given
to the start-up costs and problems of a new school versus a
school that has been through the start-up procedures.
Mr. Klaich stated that the position of the Board of Regents
for the past 10 years has been that when a law school is
added to the System, it would be placed at UNLV, and pledged
his personal support for the site. He outlined the pro-
cedures for new programs coming into the System, which are
that a request is referred to the Academic Affairs Council
for review, which in turn refers to those Departments and
Colleges on the Campuses for further input and review before
decisions are reached. He emphasized that the current leg-
islative session is critical for UNS budgets and that the
Regents' first priority is for increased salaries for cur-
Chairman Klaich asked for comments from the Regents.
Regent Foley complimented Old College for offering all as-
sets as they now stand to a public system, but stated that
a definite answer could not be expected from the Regents
until the staff had time to review finances, programs, etc.
Further, he stated he has always favored a law school for
Nevada. Mr. Foley suggested the 1980 Regents Study be
brought up to date, that the Regents should renew their com-
mitment to the site for a law school at UNLV, and that the
costs for a law school should be reviewed in light of State
resources available for the current priorities of the Sys-
tem. He stated the gift of the facility from Old College
would relieve the need for capital improvement projects at
the northern institutions, citing the needs at UNR, TMCC and
the Chancellor's Office.
Mrs. Gallagher agreed that further study is needed before a
decision is made, and requested a time limit be set. Fur-
ther, she noted that the procedures for accepting new pro-
grams within the System can take up to 2 years.
Mr. Karamanos questioned whether Old College would be able
to continue through the Fall semester, with Mr. Nelson re-
plying that under the present circumstances it would con-
tinue only through the Spring semester.
Mrs. Kenney stated she agreed with Dr. Elaine Wynn's state-
ments, reiterating that the 1st priority of the Board is
for increased salaries, and that she favored a study of
the situation prior to making a decision.
Mrs. Sparks stated she had a number of questions, and began
with how UNS would support the Old College deficit as it
now stands. Dr. De Giulio stated he felt a reasonable
transition process could be accomplished within 4 to 6 weeks
and, in response to another question, confirmed that even if
the law school was to be moved to Las Vegas, the Gannett
building would revert to the System.
She further questioned that if law and humanities is a pack-
age, where would humanities be housed? Dr. Crowley answered
that UNR was interested in reviewing the humanities pro-
grams, studying the courses, funding for the programs and
where they might be integrated at UNR or at TMCC. Further,
Dr. Crowley related that he would like to quell the rumors
currently making the rounds that he had been a co-conspira-
tor in establishing Old College. He stated that he was very
much aware that the site for a law school within the System
had been set at UNLV prior to his becoming an officer of the
Dean Mary Stewart, Humanities School, Old College, stated
she felt that Old College was reaching a population not
served by the System in that students could take a program
for 4 to 5 years during evenings or weekends and earn a
Answering a question from Mr. Eardley, Dr. De Giulio stated
that the cost of a law school is $2-3 million per year. Mr.
Eardley commented that with the UNS budgets now under con-
sideration by the State Legislature, there would be a 2-year
lapse before UNS would be able to request State funding for
a new program.
Mrs. Gallagher questioned the amount needed over the next
several years to continue a school, with Dr. De Giulio re-
plying that roughly $3 million or less over the next 2
years would suffice. Mrs. Sparks questioned whether ac-
creditation would be obtainable after the $3 million debt
is retired, with the answer being affirmative.
In light of the accreditation meeting with the ABA on April
23 and 24, Mr. Klaich questioned what UNS should expect from
the ABA. Dr. De Giulio stated that, based on a pre-review
of the Old College application by several distinguished and
knowledgeable persons, he felt that only the financial sta-
bility of Old College was holding up the accreditation for
the College. Mr. Hibbs disagreed, stating that without
actually seeing the report, he felt there were other prob-
Mr. Eardley noted that there are several notes on Old Col-
lege which are held by trustees and which are payable on
demand. Dr. De Giulio stated that Old College has a line
of credit with First Interstate Bank backed by the Trustees,
but that it would not need to be paid off for several years.
In discussing the various studies concerning a law school
in Nevada, Professor Teich, Old College, stated that the UNS
study did not take into account the Gannett building, valued
now at $4.5 million, nor the $1.2 million library at Old
Mr. Foley moved that the Board of Regents reaffirm the ac-
tion of the Board that should the University System estab-
lish a law school, it will be located in Las Vegas. Mrs.
Gallagher seconded. Motion carried unanimously.
Mr. Foley moved that the Board of Regents commend the of-
ficers and trustees of Old College for their most generous
offer to the University of Nevada System and their pledge
for transition, and to immediately refer this offer to the
Chancellor and staff, the Presidents' Council and the Aca-
demic Affairs Council to analyze all documents and to re-
port back to the Board their findings within 40 days. Mrs.
Sparks seconded. Motion carried unanimously.
Mr. Klaich requested that the accreditation report from the
ABA be released to UNS as soon as possible, along with all
documents so that the officers could complete the study, and
further, that the report include comments on the programs
and where they might transfer within the System, the finan-
cial aspects and, if the recommendation is to acquire the
College, the manner in which transition would take place.
Mr. Klaich also cautioned in assigning this study that no
pre-supposition to the recommendation or decision is made
by the Board at this time.
The meeting adjourned at 3:45 P.M.
Mary Lou Moser