Lawmakers reject Del Papa’s request to hire more lawyers

Thursday, Nov. 18, 1999 | 11:33 a.m.

The Interim Finance Committee rejected the attorney general's request to hire two deputies to carry out laws governing mortgage companies and homeowner associations.

Senate Majority Leader Bill Raggio, R-Reno, questioned the spending of about $210,000 while the governor is studying whether state agencies are performing essential services.

He said Wednesday that Gov. Kenny Guinn already has kept 1,300 state job positions vacant and the study could recommend state government be downsized.

"We are looking at a situation down the road where revenues may not cover existing positions," Raggio added.

Money for the new deputies would have come from fees on the regulated industries, rather than from general state taxes.

Financial Institutions Administrator Scott Walshaw argued his staff needs a new lawyer because of increased litigation coming from a mortgage industry law that went into effect Oct. 1.

The law, spawned by the failure of the Harley Harmon Mortgage Co. in Las Vegas, calls for $10,000 fines against companies who break state laws. Previously they could be fined only $500.

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