MINUTES 
                                           
                      SENATE COMMITTEE ON BUSINESS & COMMERCE 
                         Subcommittee on Interim Charge #1 
                             Tuesday, December 4, 2001 
                                     9:30 a.m. 
                                   Senate Chamber 
                                           
                                       ***** 
                                           
         Pursuant to a notice posted in accordance with Senate Rule  
         11.18, a public hearing of the Senate Committee on Business &  
         Commerce, Subcommittee on Interim Charge #1,  was held on  
         Tuesday, December 4, 2001, in the Senate Chamber at Austin,  
         Texas. 
          
                                       ***** 
                                           
         MEMBERS PRESENT:                        MEMBERS ABSENT: 
         Senator John Carona, Chairman           Senator Leticia Van de  
         Putte 
         Senator Troy Fraser                      
         Senator Mike Jackson                     
         Senator Eddie Lucio, Jr. 
                                           
                                       ***** 
                                           
         Senator John Carona, Chairman of the Subcommittee on Interim  
         Charge #1 (the Termination of Contractual Agreements Between  
         Insurers and Insurance Agents), called the meeting to order at  
         9:40 a.m.  There being a quorum present, the following business  
         was transacted: 
          
         Chairman Carona made opening remarks and stated that Interim  
         Charge #1 was the result of a bill carried by Senator Jackson  
         during the legislative session.  The bill caught the attention  
         of a number of people, which led the Senate leadership to  
         believe that the issue was worthy of further study. 
          
         The Chairman then called the first invited witness, Jose  
         Montemayor, Commissioner, Texas  
         Department of Insurance, who presented a briefing on the issue.   
          
         Following Commissioner Montemayor's testimony and response to  
         members' questions, Chairman Carona called Panel 1 - Insurance  
         Agents.  The panelists were: 
          
              Jerry Beauchamp, San Antonio, Texas, 
              Jim Boldin, Austin, Texas,  
              Raymond Gonzalez, San Antonio, Texas, and 
              Dave Howell, New Braunfels, Texas. 
          
         Upon completion of testimony by Panel 1, the Chairman called  
  
         Panel 2 - Insurers.  The panelists presenting testimony and  
         responding to members' questions were: 
          
              John Hintz, State Farm Insurance Companies, Austin, Texas, 
              Bob Huxel, Farmers Insurance Group, Austin, Texas, and 
              Jay Thompson, Association of Fire & Casualty Companies in  
         Texas, Austin, Texas. 
          
         Chairman Carona then called for public testimony to commence.   
         Witnesses testifying, and registering but not wishing to  
         testify,  are shown on the attached list.   
          
         There being no further business, at 12:20 p.m. Chairman Carona  
         moved that the Subcommittee stand recessed subject to the call  
         of the chairman.  Without objection, it was so ordered.   
          
         _______________________________ 
         Senator John Carona, Chairman 
          
         _______________________________ 
         Barbara Henderson, Clerk