MINUTES OF THE

      SENATE COMMITTEE ON COMMERCE AND LABOR

 

      Sixty-seventh Session

      May 13, 1993

 

 

 

The Senate Committee on Commerce and Labor was called to order by Chairman Randolph J. Townsend, at 9:30 a.m., on Thursday, May 13, 1993, in Room 227 of the Legislative Building, Carson City, Nevada.  Exhibit A is the Meeting Agenda.  Exhibit B is the Attendance Roster.

 

 

COMMITTEE MEMBERS PRESENT:

 

Senator Randolph J. Townsend, Chairman

Senator Sue Lowden, Vice Chairman

Senator Ann O'Connell

Senator Mike McGinness

Senator Raymond C. Shaffer

Senator Leonard V. Nevin

Senator Lori L. Brown

 

GUEST LEGISLATORS PRESENT:

 

Assemblyman William A. Petrak, Assembly District 18

Assemblywoman Erin L. Kenny, Assembly District 4

 

STAFF MEMBERS PRESENT:

 

Denise Pinnock, Committee Secretary

Brian Davie, Senior Research Analyst

 

OTHERS PRESENT:

 

Leland Pace, Stewart, Archibald & Barney

Wayne Label, Ph.D., CPA, Director of External Relations, College of      Business and Economics, University of Nevada, Las Vegas

Ray Moberg, Managing Partner, Ernst & Young

David Turner, CPA, Kafoury, Armstrong & Company

John Mills, Associate Professor, Accounting and Information           Systems Department, College of Business Administration,            University of Nevada, Reno

John Wiles, Advocate for Insurance Customers, Department of            Insurance, State of Nevada

James R. Jinks, Lieutenant Colonel (Retired), Lobbyist, United         Services Automobile Association

Bob Crowell, Lobbyist, Farmers Insurance Company

Tim Griswold, CPA, Read & Powell

 

 

Chairman Townsend opened the hearing on Assembly Bill (A.B.) 241.

 

ASSEMBLY BILL 241:      Prospectively increases number of semester hours required for certification as certified public accountant.

 

Leland Pace, Stewart, Archibald & Barney, a certified public accountant (CPA) firm, said he was strongly in favor of the bill.  He submitted written testimony (Exhibit C).  He explained that similar legislation had been passed in 27 states.

 

Senator O'Connell expressed surprise that the Nevada State Board of Accountancy had not taken a position on the bill.  Mr. Pace said he had questioned that.  He said the board's comment was that, as the government entity with the responsibility of administering the law, they should not take a position on the passage of laws.  Senator O'Connell stated that was a very unusual position to take.  She said the board would usually be the entity presenting the bill to the legislature. 

 

Wayne Label, Ph.D., CPA, Director of External Relations, College of Business and Economics, University of Nevada, Las Vegas (UNLV), testified that the additional cost at both UNLV and the University of Nevada, Reno (UNR), would be nonexistent. 

 

Senator Brown said one of the reasons she had been trying to find sources of funding for the university system is that other members of the university system had told her there was not enough money to offer basic liberal arts courses that are required for a regular 4 year degree.  She questioned the testimony that the accounting departments could add additional courses without additional costs.  Dr. Label stated the program was already in place.

 

Ray Moberg, Managing Partner, Ernst & Young, said the 150 hour requirement would enhance the non-technical skills required in the CPA profession.

 

Senator O'Connell asked how many students were currently in the 5 year program at UNLV.  Dr. Label stated there are about 35 students. 

 

David Turner, CPA, Kafoury, Armstrong & Company, an accounting firm, said his organization's concern was that, since 27 states had already passed similar legislation, Nevada would not pass A.B.241.

 

John Mills, Associate Professor, Accounting and Information       Systems Department, College of Business Administration,            University of Nevada, Reno, submitted testimony (Exhibit D) in support of the bill.

 

Senator Townsend explained that four of the committee members had a meeting to go to soon, and that further testimony on the bill would be taken in subcommittee.  Senator Townsend closed the hearing on A.B. 241, and opened the hearing on A.B. 148.

 

ASSEMBLY BILL 148:      Requires reduction of premium for policy of insurance for motor vehicle equipped with air bag.

 

Assemblyman William A. Petrak, Assembly District 18, explained the bill to the committee.  He submitted a copy of his insurance premium notice (Exhibit E) to illustrate the discount given him by the insurance company for having airbags in his vehicle.  Mr. Petrak stated people are just not being taken care of, and the proposed legislation was one way of trying to change that.

 

Senator Brown asked whether insurance companies decided who to cover, based on tickets and accidents, or how safe the car is.

 

John Wiles, Advocate for Insurance Customers, Department of Insurance, State of Nevada, stated that when underwriting, a company decides whether or not to accept an individual as a risk.  Generally, he said, the underwriting practices are considered proprietary. 

 

Assemblywoman Erin L. Kenny, Assembly District 4, stated she was not there to testify for or against the bill.  She said Assemblyman Porter had asked her to chair the assembly subcommittee on A.B. 148.  She explained the evolution of how the bill had become what it was. 

 

Mr. Wiles said he was there to "unequivocally support A.B. 148." 

 

Senator Nevin reiterated a point Mrs. Kenny had made....if the legislature rewarded those persons whose vehicles were equipped with airbags, they were effectively punishing those whose vehicles did not have airbags.  Mr. Wiles said the rate structure currently in effect only allows for discounts on medical payments, and is discriminatory. 

 

James R. Jinks, Lieutenant Colonel (Retired), Lobbyist, United Services Automobile Association (USAA), expressed opposition to the bill.  He stated he was confused about the purpose of the bill.  Lt. Col. Jinks wondered whether the legislature was trying to reduce insurance premiums, or encourage safety.  He said the premiums charged in Nevada were based on the cost of doing business here. 

 

Bob Crowell, Lobbyist, Farmers Insurance Company, stated his organization could not accept the Department of Insurance amendment

 

Senator Nevin closed the hearing on A.B. 148, and opened the hearing on A.B. 241.

 

ASSEMBLY BILL 241:      Prospectively increases number of semester hours required for certification as certified public accountant.

 

Tim Griswold, CPA, Read & Powell, submitted written testimony (Exhibit F) in opposition to the bill.

 

As the committee members were expected on the senate floor, the meeting was adjourned at 10:20 a.m.

   

 

 

 

            RESPECTFULLY SUBMITTED:

 

 

 

                                    

            Denise Pinnock,

            Committee Secretary

 

 

 

APPROVED BY:

 

 

 

 

                                     

Senator Randolph J. Townsend, Chairman

 

 

DATE:                                

??

 

 

 

 

 

 

 

Senate Committee on Commerce and Labor

May 13, 1993

Page 1