Treasurer seeks control of agency despite objections

Tuesday, Aug. 3, 1999 | 11:37 a.m.

CARSON CITY -- The Legislature said no three times but that's not stopping Republicans Gov. Kenny Guinn and Treasurer Brian Krolicki from going ahead with plans for a minor government reorganization.

While not a major issue, it might pose trouble for Krolicki in the Democratic-controlled Assembly in the future.

Krolicki, elected to his first term in 1998, and his predecessor, Bob Seale, attempted to gain control of the state's unclaimed property office, a tiny agency that sweeps dormant bank accounts, old deposits for utility service and other funds.

"It's been a sleepy agency," says Krolicki. "It needs day-to-day management."

Unclaimed property is one of 27 agencies supervised in the state Department of Business and Industry. But there's been lack of consistent management for nearly one year. Guinn named Dan Tom as director, but he died after three months on the job and Charles Horsey is back as acting director, a post he held several months before Tom's appointment.

The governor says unclaimed property is a money management office and proposes that it come under the treasurer.

This proposed move doesn't sit well with Assemblyman Doug Bache, D-Las Vegas, the chairman of the Government Affairs Committee which sank the plan this year. Bache's committee, with only two dissents, voted to switch the agency to Secretary of State Dean Heller. But the amended legislation eventually died in his committee.

"He (Krolicki) couldn't get something so he's using another way ... this is not appropriate," Bache said of the proposed executive switch. "It's a violation of legislative intent."

In 1998-99 the division found an estimated $9 million on which it returned $2.6 million to its owners and the state kept $6.8 million. By proper management, Krolicki says he can produce an extra $10 million to enrich the state treasury.

There may be some unclaimed assets that the division is not picking up, Krolicki said. And there needs to be internal controls in the division.

"Over 30 state treasurers have the unclaimed properties. In no place is it in the secretary of state's office," Krolicki said.