MINUTES
SENATE COMMITTEE ON ECONOMIC DEVELOPMENT
Tuesday, October 17, 2000
9:00 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 Tuesday, October 17, 2000, in the Senate
Chamber at Austin, Texas.
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MEMBERS PRESENT: MEMBERS ABSENT:
Senator David Sibley Senator Troy Fraser
Senator Kenneth Armbrister
Senator John Carona
Senator Mike Jackson
Senator Frank Madla
Senator John Whitmire
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Chairman Sibley called the meeting to order at 9:10 a.m. There
being a quorum present, the following business was transacted.
The Chairman announced that the hearing would begin by receiving
the subcommittee reports and called Senator Carona. Senator
Carona presented the Subcommittee on Consumer Credit Laws
Report. He explained that the Subcommittee held two hearings in
order to study the effects of the State's usury laws as they
affect consumer lending in Texas. Senator Carona presented the
Subcommittee's recommendations and moved that the report be
adopted by the full Committee. Without objection, the report
was adopted.
Senator Carona then presented the Subcommittee on Private Sector
Business Financing Report. The recommendations in the report
reflect the need to find creative means to provide business
capital without committing significant new public dollars.
Senator Carona explained the recommendations contained in the
report and moved that the report be adopted by the full
Committee. Without objection, the report was adopted.
Chairman Sibley then called Senator Madla to present the report
on the Subcommittee on 9-1-1 Emergency Communications. The
Subcommittee was charged to study any needed changes to create a
more efficient, cost effective emergency communication system,
including the development and implementation of wireless 9-1-1.
The Subcommittee held three meetings throughout the state and
basically looked at three areas dealing with the 9-1-1 system.
The first area related to the 9-1-1 fee on telephone bills and
its uses; the second issue was the question of whether the State
is prepared to meet 9-1-1 future needs; and finally, whether
communities or cities should be allowed to opt out of the 9-1-1
system. Senator Madla explained the recommendations made by the
Subcommittee, and moved that the report be adopted by the full
Committee. Without objection, the report was adopted.
The Chairman then called Senator Jackson, who chaired the
Subcommittee on the Effect of Government Regulations on Economic
Development. The Subcommittee was requested to study the impact
of local, state and federal government regulations on economic
development efforts in Texas. Senator Jackson presented an oral
report on the Subcommittee meeting held in Clear Lake on
December 1, 1999, where testimony was heard from State agencies,
local governments, business organizations, and private citizens.
Testimony and discussions focused primarily on the effect that
the proposed State Implementation Plan (SIP) would have on
economic development efforts in Texas, especially in those areas
designated as non-attainment areas. The SIP may be completed by
the end of the year for submission to the EPA for approval.
Many of the rules will make dramatic changes in business
operations, and will have an effect on future growth and
economic development. For these reasons, the Subcommittee
recommends that the Committee continue to closely monitor the
SIP implementation as it evolves. Senator Jackson moved that
the report be adopted by the full Committee. Without objection,
the report was adopted.
Chairman Sibley advised that the Committee would consider
Interim Charge #3 - monitoring trends affecting the convergence
of the banking, securities and insurance industries, including
market forces and federal government activity. The Chairman
called Rhonda Myron, Special Assistant on Insurance and Banking,
Senate Economic Development Committee, to explain the proposals
for the interim report. Ms. Myron explained three proposals for
legislation to conform state laws to requirements of the federal
Gramm-Leach-Bliley Act of 1999 (GLBA); and two proposals which
relate to legislation on GLBA privacy requirements and
confidentiality of agency information. Chairman Sibley advised
that consideration had been given to several ideas surrounding
these issues, not only privacy, but conforming to GLBA. One of
the issues considered was the current agents licensing laws
since there is a possibility of federal preemption if the laws
are not changed.. The GLBA also calls for state action on
privacy requirements for the insurance industry. The question
is whether Texas will go beyond the requirements of the GLBA.
The Chairman suggested that a watchful, waiting approach be
taken at this time, and that the State adopt legislation based
on the GLBA and the NAIC model regulation.
Following Ms. Myron's response to members' questions, Senator
Carona moved adoption of the proposals for the interim report.
Without objection, the proposals were adopted.
The Chairman announced that the final issue for consideration
was Interim Charge #4 - monitoring the implementation of SB 560.
David Featherston, Director of Telecommunications Division at
the Public Utility Commission (PUC), was called to present an
overview of the implementation of SB 560 as set out in a binder
of information provided to the Committee members by the PUC.
During Mr. Featherston's testimony, Carey Spence, Deputy
Director of the Commission on State Emergency Communications,
was called to answer a member's question concerning the 9-1-1
fee charge on telephone bills. Pat Wood, Chairman of the Public
Utility Commission, was called to testify and respond to
questions concerning various charges on telephone bills. In
response to questions concerning state and local tax on fees and
surcharges on telephone bills, the Chairman called David
Somerville, Tax Policy Specialist at the Comptroller's Office.
Following testimony and members' questions on the
telecommunications charge, Chairman Sibley proposed a
recommendation that the State not levy taxes on the public
utility gross receipts tax, municipal franchise tax and the TIF
assessment, and that the Universal Service Charges, both federal
and state, should be studied further to determine whether
taxation of those charges is appropriate. Senator Jackson moved
adoption of the recommendation. Without objection, it was so
ordered.
There being no further business, at 10:35 a.m. Senator Sibley
moved that the Committee stand recessed subject to the call of
the chair. Without objection, it was so ordered.
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Senator David Sibley, Chairman
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Barbara Henderson, Clerk