Monday, May 15, 2000 
                                     10:00 a.m. 
                                   Senate Chamber 
         Pursuant to a notice posted in accordance with Senate Rule  
         11.18, a public hearing of the Senate Committee on Economic  
         Development was held on Monday, May 15, 2000, in the Senate  
         Chamber at Austin, Texas. 
         MEMBERS PRESENT:                        MEMBERS ABSENT: 
         Senator David Sibley                    Senator John Whitmire 
         Senator Kenneth Armbrister 
         Senator John Carona 
         Senator Troy Fraser 
         Senator Mike Jackson 
         Senator Frank Madla 
         The Senate Economic Development Committee held a joint hearing  
         with the Senate Health Committee to consider issues surrounding  
         privacy.  The hearing was chaired jointly by Senator Sibley and  
         Senator Nelson.  The chairs called the meeting to order at 10:10  
         a.m.  There being a quorum present, the following business was  
         Senator Nelson welcomed everyone attending the hearing, and  
         thanked Senator Sibley and the Economic Development Committee  
         members for their willingness to jointly investigate and offer  
         recommendations to ensure that privacy protections are adequate  
         and consistent in Texas. 
         Senator Sibley advised that he and Senator Nelson had previously  
         discussed the issue of privacy in general and realized that both  
         committees were faced with privacy issues.  Senator Sibley  
         thanked Senator Nelson and stated that although the committees  
         would not accomplish everything in one hearing, he looked  
         forward to a beginning. 
         Senator Nelson then called the first panel of invited witnesses  
         to present their testimony on privacy overview.  The panelists  
         were as follows: 
              John Ryan, Conference of State Bank Supervisors,  
                   Washington, D.C., Overview of Privacy Provisions  
                   Pertaining to the Gramm-Leach-Bliley Act. 
              Elizabeth Rogers, Vinson & Elkins, Austin, Texas, Overview  
         of Privacy Provisions  
                   Pertaining to the Health Insurance Portability and  
         Accountability Act. 
              Carolyn Purcell, Executive Director, Department of  
         Information Resources, Overview 
                   of E-Commerce Privacy. 
              Rebecca L. Payne, Chief, Open Records Division, Attorney  
         General's Office, Overview 
                   of Texas' Privacy Statutes. 
         Upon completion of the first panel members' testimony and  
         response to committee members' questions, Senator Nelson called  
         Panel II to present testimony on privacy of health information.   
         The panelists were: 
              Will D. Davis, representing Texas Association of Life and  
         Health Insurers, Austin, Texas. 
              Esther Nicole Cooper, MD, representing the Texas Medical  
         Association, Dallas, Texas. 
              A.G. Breitenstein, representing herself, Somerville,  
              Steven Palmer, representing Pharmaceutical Research and  
         Manufacturers of America, 
                   Denver, Colorado. 
              Lisa McGiffert, representing Consumers Union, Austin,  
         Following testimony by Panel II and the panelists' response to  
         members' questions, Senator Nelson called Panel III - Industry  
         and Commerce, to present testimony on privacy of financial  
         information.  The panelists were as follows: 
              J. Bradley Johnston, representing Temple-Inland Financial  
         Services, Inc., Austin, Texas. 
              Karen Neeley, General Counsel, Independent Bankers  
         Association of Texas, Austin. 
              Rob Schneider, representing Consumers Union, Austin, Texas. 
              Jeff Clark, representing Alliance for Responsible  
         Information Practices, Austin, Texas. 
         There being no further business, at 2:20 p.m. 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