Subcommittee on Interim Charge #2 
                             Tuesday, December 4, 2001 
                                     1:30 p.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 #2,  was held on  
         Tuesday, December 4, 2001, in the Senate Chamber at Austin,  
         MEMBERS PRESENT:                        MEMBERS ABSENT: 
         Senator Mike Jackson, Chairman          Senator David Sibley 
         Senator John Carona                     Senator Eliot Shapleigh 
         Senator Troy Fraser                     Senator Leticia Van de  
         Senator Eddie Lucio, Jr. 
         Senator Mike Jackson, Chairman of the Subcommittee on Interim  
         Charge #2, called the meeting to order at 1:45 p.m.  There being  
         a quorum present, the following business was transacted. 
         Chairman Jackson advised that the Subcommittee will study rate  
         regulation of homeowners and automobile insurance, the use of  
         county mutual companies to circumvent rate regulation, and the  
         effects of deregulation on insurance rates and consumers.  The  
         Chairman announced that the next meeting would be held in  
         February or March, and he plans to hear from insurers and  
         possibly take public testimony at that time. 
         The Chairman stated that invited testimony would be heard at the  
         present hearing, and called the first witness, Jose Montemayor,  
         Commissioner of the Texas Department of Insurance.  The  
         Commissioner was asked to present testimony on current laws  
         relating to rate regulation of homeowners' and automobile  
         insurance and the existing marketplace in Texas.  Philip  
         Presley, Actuary at the Texas Department of Insurance, also  
         testified and responded to members' questions. 
         Following testimony by Commissioner Montemayor and Philip  
         Presley, Chairman Jackson called Rod Bordelon, Public Counsel,  
         Office of the Public Insurance Counsel (OPIC), to present  
         testimony regarding OPIC's role in the ratemaking process. 
         There being no further business, at 3:10 p.m. Senator Jackson  
         moved that the Committee stand recessed subject to the call of  
         the chairman.  Without objection, it was so ordered.   
         Senator Mike Jackson, Chairman 
         Barbara Henderson, Clerk