AG: No money back

Thursday, June 20, 1996 | 11:59 a.m.

CARSON CITY -- Secretary of State Dean Heller's "money-back guarantee" program is not allowed by Nevada law and his office could face "serious consequences" if he starts it, the attorney general's office said.

Heller has no authority to refund fees if his office fails to process paperwork for new corporations and others within five days, said Chief Deputy Attorney General Jonathan Andrews.

Heller said today he never asked for any legal advice from Attorney General Frankie Sue Del Papa's office and he thinks it's wrong. He called it "clearly a bunch of legal red tape."

But he will delay the start of the pilot project from July 1 to Sept. 1 to allow him to go before the Legislature's Interim Finance Committee for clearance.

Taking his cue from private industry, Heller has proposed that new corporations and other businesses would not be charged a fee if his office did not complete their paperwork within five days.

Government penalizes the consumer who doesn't pay his tax on time or misses other deadlines, but nothing happens to government when it drags its feet, Heller says.

After reviewing the confidential letter from Andrews, Heller said today he would not submit his employees to possible malfeasance charges.

"I think it's malfeasance to be inefficient," he said. "But apparently the attorney general's office thinks the statutes dictate that we remain inefficient and unaccountable. It's one more reason people don't like career politicians and professional bureaucrats."

Andrews, in the letter to Chief Deputy Secretary of State Dale Erquiaga, said, "While we commend your enthusiasm to provide the services the public expects to receive, we are concerned that your existing statutory authority may not permit this policy to be implemented."

These fees, said Andrews, are mandatory and must be deposited in the state general fund within one working day of receipt.

"The secretary of state has no statutory authority to refund filing fees," he said.

"Unlike private business, a public officer may exercise only that power which is conferred upon him by law. Refunding monies that have not been approved as part of the secretary of state's budget could be construed to bind the state and your office in a manner not provided by law."

The question of legality was first raised earlier this month by Las Vegas attorney Chuck Gardner, who called it a "hare-brained scheme."

Heller said today, "Essentially the attorney general has concluded that statutes need to be changed in order to run a pilot program. I disagree with her. Elected officials should -- and I will -- look for solutions which will make this program an immediate reality."