MINUTES
         
                     SENATE COMMITTEE ON ECONOMIC DEVELOPMENT
                           Thursday, February 20, 1997
                                     9:00 am
                                  Senate Chamber
         
                                      *****
         
         Pursuant to a notice posted in accordance with Senate Rule 
         11.11, a public hearing of the Senate Committee on Economic 
         Development was held on Thursday, February 20, 1997 in the 
         Senate Chamber at Austin, Texas.  
         
                                      *****
         
         MEMBERS PRESENT:                        MEMBERS ABSENT:
         Senator David Sibley, Chairman          Senator Chris Harris
         Senator David Cain, Vice Chairman       Senator Frank Madla
         Senator Robert Duncan
         Senator Rodney Ellis
         Senator Tom Haywood
         Senator Eddie Lucio, Jr.
         Senator Jerry Patterson
         Senator Florence Shapiro
         Senator Eliot Shapleigh
         
                                      *****
         
         The Chair called the meeting to order at 9:10 am.  There being 
         a quorum present, the following business was transacted.  
         
         The Chair laid out SB 220.  Senator Duncan sent up a committee 
         substitute; the Chair recognized the bill author, Senator 
         Bivins, to explain the difference between the committee 
         substitute and the bill as filed.  
         
         The Chair announced that the Committee would have invited 
         testimony to present an overview of SB 220, and called the first 
         expert witness, Shannon Ratliff, representing the Texas Civil 
         Justice League, speaking in support of the bill.  Professor 
         Louis Muldrow, representing himself, testified as a resource on 
         the bill.  Professor Bill Powers, representing the Texas Civil 
         Justice League, presented testimony in favor of the bill.  Pat 
         Hazel, representing himself, was called to testify in opposition 
         to the bill.
         
         At 11:15 a.m., Chairman Sibley recessed the hearing until 30 
         minutes after adjournment of the Senate.  Without objection, it 
         was so ordered.
         
         At 12:30 p.m., the Committee reconvened and the Chair called Pat 
         Hazel to continue his testimony.  Upon completion of Mr. Hazel's 
         testimony and members' questions, the Chair read the names of
 
         





         witnesses registering for or against the bill but not wishing to 
         testify.  Judge Ann Ashby, 134th District Court, testified as a 
         resource on the bill.  Robert Beatty, representing himself; and 
         Steve Bresnan and Michael Slack, both representing Texas Trial 
         Lawyers Association, all testified in opposition to the bill. 
         All witnesses are shown on the attached witness list.
            
         Senator Duncan sent up Committee Amendment 1 and explained the 
         amendment.  The Chair advised that the amendment would not be 
         adopted at this time, and that SB 220 would be left pending. 
         Without objection, it was so ordered.
         
         At 1:45 pm Senator Cain assumed the chair, laid out SB 275 and 
         recognized the author, Senator Sibley, to explain the bill.  
         
         John Eads and Robert Owen, representing the Texas Society of 
         CPAs, testified in favor of the bill.  John Heasley, 
         representing Texas Bankers Association; John McEldowney, 
         representing himself; and Michael Slack, representing Texas 
         Trial Lawyers Association, all spoke in opposition to the bill. 
         The Chair read the names of persons registering for the bill but 
         not wishing to testify.  All witnesses are shown on the attached 
         witness list.
         
         At 2:40 pm Senator Sibley assumed the chair.  
         
         Upon conclusion of the testimony, Senator Sibley moved that SB 
         275 be left pending; without objection, it was so ordered.
         
         There being no further business, at 2:45 pm Senator Sibley moved 
         that the Committee stand recessed subject to the call of the 
         Chair.  Without objection, it was so ordered.  
         
         
         
         
         __________________________                                                        ______________________
         Senator David Sibley, Chairman                                                  Barbara Henderson, Clerk