MINUTES
         
                    SENATE COMMITTEE ON ECONOMIC DEVELOPMENT
                            Thursday, March 13, 1997
                                     9:00 am
                          Lt. Governor's Committee Room
         
                                      *****
         
         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, March 13, 1997 in the Lt. 
         Governor's Committee Room, Austin, Texas.  
         
                                      *****
         
         MEMBERS PRESENT:                        MEMBERS ABSENT:
         Senator David Sibley, Chairman          None
         Senator David Cain, Vice Chairman
         Senator Robert Duncan
         Senator Rodney Ellis
         Senator Chris Harris
         Senator Tom Haywood
         Senator Eddie Lucio, Jr.
         Senator Frank Madla
         Senator Jerry Patterson
         Senator Florence Shapiro
         Senator Eliot Shapleigh
         
                                      *****
         
         The Chair called the meeting to order at 9:15 am.  There being 
         a quorum present, the following business was transacted.  
         
         The Chair advised that the Committee would vote on pending 
         bills and laid out SB 547 by Senator Carona.  There being no 
         additional discussion, Senator Shapiro moved that SB 547 be 
         reported favorably to the full Senate with the recommendation 
         that it do pass and be printed.  The motion carried with a 
         vote of 9 ayes, 0 nays, 0 present not voting, and 2 absent.  
         
         Senator Cain requested unanimous consent to certify the bill 
         for Local & Uncontested Calendar; without objection, it was so 
         ordered.  
         
         The Chair laid out SB 459 and recognized the author, Senator 
         Ellis.  Senator Ellis sent up a committee substitute and 
         explained the difference between the committee substitute and 
         the bill as filed.  Senator Ellis moved that SB 459 do not 
         pass but that CSSB 459 be reported back to the Senate with the 
         recommendation that it do pass and be printed.    The motion 
         carried with a vote of 9 ayes, 0 nays, 0 present not voting, 
         and 2 absent.
         
         Senator Ellis requested unanimous consent to certify the bill 
 
         





         for Local & Uncontested Calendar; without objection, it was so 
         ordered.  
         
         The Chair laid out SB 417 and recognized the author, Senator 
         Ellis, to explain the bill.  
         
         Senator Shapiro sent up Committee Amendment 1 and moved 
         adoption; without objection, the amendment was adopted.  
         
         Senator Ellis moved that SB 417, as amended, be reported back 
         to the Senate with the recommendation that it do pass and be 
         printed.  The motion carried with a vote of 9 ayes, 0 nays, 0 
         present not voting, and 2 absent.  
         
         Senator Ellis requested unanimous consent to certify the bill 
         for Local & Uncontested Calendar; without objection, it was so 
         ordered.  
         
         The Chair laid out SB 251 and recognized the author, Senator 
         Carona, to explain the bill.  
         
         Senator Ellis sent up Committee Amendment 1 and moved 
         adoption; without objection, the amendment was adopted.  Chair 
         read the names of witnesses registering on the bill but not 
         wishing to testify.  The witnesses are shown on the attached 
         witness list.
         
         Senator Ellis sent up Committee Amendment 2 and moved 
         adoption; without objection, the amendment was adopted.  
         
         Senator Shapleigh sent up Committee Amendment 3.  The Chair 
         directed the committee to make a correction in the amendment.  
         Senator Shapleigh then moved adoption of the amendment as 
         corrected; without objection, the amendment was adopted.  
         
         The Chairman asked Rob Schneider, representing the Consumers 
         Union, and previously opposing the bill, if he was still in 
         opposition and Mr. Schneider stated that he was now in support 
         of the bill.
         
         Senator Shapleigh requested unanimous consent to incorporate 
         amendments into a committee substitute; without objection, it 
         was so ordered.  Senator Ellis then moved that the new 
         committee substitute be adopted; without objection, it was so 
         ordered.  Senator Ellis moved that SB 251 do not pass but that 
         CSSB 251 be reported back to the Senate with the 
         recommendation that it do pass and be printed.  The motion 
         carried with a vote of 10 ayes, 0 nays, 0 present not voting, 
         and 1 absent.  
         
         The Chair laid out SB 293 and recognized the author, Senator 
         Carona, to explain the bill.  
         
         Ted Barron, City Manager, City of Mesquite, and Councilman 
         James Folks, City of Mesquite, testified as resources on the 
 
         





         bill.  Mayor Cathye Ray, and Bill Clayton, City of Mesquite, 
         registered  in favor of the bill but did not wish to testify.
         
         Senator Madla moved that SB 293 be reported favorably to the 
         full Senate with the recommendation that it do pass and be 
         printed.  The motion carried with a vote of 9 ayes, 0 nays, 0 
         present not voting, and 2 absent.  
         
         The Chair laid out SB 206 and recognized the author, Senator 
         Madla.  Senator Madla sent up a committee substitute and 
         explained the difference between the committee substitute and 
         the bill as filed.  Waco Rainey, and Michelle Hutto, 
         representing Concerned Insurance Texas Agents, testified in 
         favor of the bill.  Rhonda Myron, representing Texas 
         Department of Insurance, testified as a resource on the bill.  
         Fred Bosse, representing USAA, testified in opposition to the 
         bill.  Robert Simpson, representing State Farm Insurance 
         Companies, and Kenneth Tooley, representing Texas Association 
         of life Underwriters, testified in favor of the bill.  The 
         Chair read the names of persons registering in support of the 
         bill but not wishing to testify.
         
         At 10:40 am Senator Cain assumed the chair and recognized 
         Senator Sibley.  Senator Sibley sent up Committee Amendment 1 
         and moved adoption; without objection, the amendment was 
         adopted.  
         
         Senator Sibley resumed the chair at 10:42 a.m.  Senator Madla 
         requested unanimous consent to incorporate the amendment into 
         a new committee substitute; without objection, it was so 
         ordered.  Senator Madla then moved that the new committee 
         substitute be adopted; without objection, it was so ordered.  
         Senator Madla moved that SB 206 do not pass but that CSSB 206 
         be reported back to the Senate with the recommendation that it 
         do pass and be printed.  The motion carried with a vote of 10 
         ayes, 0 nays, 0 present not voting, and 1 absent.  
         
         At 10:45 a.m., the Chair recessed the hearing until after 
         adjournment of the Senate; without objection, it was so 
         ordered.
         
         The Committee reconvened at 12:45 p.m.  The Chair advised that 
         the posting rule had been suspended to hear HB 578, a 
         companion bill to SB 750, which had been left pending in 
         Committee.  The Chair then recognized the Senate sponsor, 
         Senator Bivins to explain the difference between HB 578 and SB 
         750.  Bob Huxel, representing Texas Association of Insurance 
         Agents, testified in favor of the bill.  Senator Madla moved 
         that HB 578 do pass and be printed.  The motion carried with a 
         vote of 7 ayes, 0 nays, 0 present not voting, and 4 absent.
         
         The Chair laid out SB 98 by Senator Zaffirini and recognized 
         Senator Shapleigh, in the absence of the author, to explain 
         the bill.  
         
 
         





         Senator Shapleigh sent up a committee substitute and explained 
         the difference between the committee substitute and the bill 
         as filed.  The Chair called witnesses wishing to testify on 
         the bill, and following testimony, read the names of persons 
         registering on the bill but not wishing to testify.  All 
         witnesses are shown on the attached list.
         
         Senator Shapleigh sent up Committee Amendment 1; the Chair 
         advised that the committee substitute and Committee Amendment 
         1 would be left pending before the Committee.  The Chair 
         closed the public hearing and moved that SB 98 be left 
         pending; without objection, it was so ordered.
         
         The Chair laid out SB 163 by Senator Zaffirini and recognized 
         Senator Duncan, in the absence of the author, to explain the 
         bill.  The Chair then called witnesses wishing to testify on 
         the bill.  Following the testimony, the Chair read the name of 
         persons registering on the bill but not wishing to testify.  
         All witnesses are shown on the attached list.  The Chair then 
         closed the public hearing and moved that SB 163 be left 
         pending; without objection, it was so ordered.
         
         The Chair laid out SB 217 by Senator Zaffirini and recognized 
         Senator Shapiro in the absence of the author.  Senator Shapiro 
         sent up a committee substitute and explained the difference 
         between the committee substitute and the bill as filed.  The 
         Chair advised that witnesses wishing to testify on the bill at 
         this hearing could do so but the public hearing would not be 
         closed and witnesses wishing to wait and testify at the 
         hearing on Tuesday, March 18, could do so.  Following the 
         testimony, the Chair read the names of persons registering on 
         the bill but not wishing to testify.  The Chair recognized 
         Representative Leticia Van de Putte, author of the companion 
         bill, HB 262.  Senator Sibley then moved that SB 217 be left 
         pending; without objection, it was so ordered.
         
         There being no further business, at 3:05 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