SENATE COMMITTEE ON FINANCE 
                Interim Subcommittee on Tobacco Settlement Proceeds 
                              Thursday, April 20, 2000 
                                     9:00 a.m. 
                           Capitol Extension, Room E1.036 
         Pursuant to a notice posted in accordance with Senate Rule  
         11.18, a public hearing of the Senate Committee on Finance was  
         held on Thursday, April 20, 2000, in the Capitol Extension, Room  
         E1.036, at Austin, Texas. 
         MEMBERS PRESENT:                        MEMBERS ABSENT: 
         Senator Royce West, Chairman            Senator Robert Duncan 
         Senator Mike Moncrief                   Senator Troy Fraser 
         Senator Steve Ogden 
         The chair called the meeting to order at 9:10 a.m.  There being  
         a quorum present, the following business was transacted:   
         The chair made opening remarks and proceeded with the hearing as  
              Dr. Ralph D. Feigin, representing Baylor College of  
              Medicine, provided testimony regarding the expenditure of  
              tobacco settlement proceeds and priorities for use of  
              future proceeds. 
              John O'Brien, representing the Legislative Budget Board,  
              provided testimony regarding adjustments in dealing with  
              projected revenue reductions in tobacco settlement  
              James LeBas, representing the Office of the Comptroller,  
              provided testimony regarding financial aspects of the  
              tobacco settlement proceeds and related acts of the 76th  
              Cathy Iberg, representing the University of Texas  
              Investment Management Company (UTIMCO) provided an overview  
              on permanent funds for health-related institutions of  
              higher education.                   
              Andy Taylor, representing the Office of the Attorney  
              General, provided testimony on  the legal issues affecting  
              tobacco settlement proceed adjustments. 
         Chairman West summarized the available options to address the  
         projected tobacco settlement proceeds shortfall.  He then asked  
         whether there was anyone present who wished to provide public  
         testimony.  There was no one present who wished to provide  
         public testimony. 
         There being no further business, at 11:45 a.m. Senator Ogden  
         moved that the Committee stand recessed subject to the call of  
         the chair.  Without objection, it was so ordered.   
         Senator Royce West, Chair 
         Patricia Hicks, Clerk