MINUTES 
                                            
                              SENATE COMMITTEE ON FINANCE 
                               Monday, February 26, 2001 
                                       8:00 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 Monday, February 26,  
     2001, in the Capitol Extension, Room E1.036, at Austin, Texas. 
      
                                         ***** 
                                            
     MEMBERS PRESENT:                            MEMBERS ABSENT: 
     Senator Rodney Ellis                        None 
     Senator Chris Harris 
     Senator Gonzalo Barrientos 
     Senator Robert Duncan 
     Senator Troy Fraser 
     Senator Tom Haywood 
     Senator Mike Jackson 
     Senator Jon Lindsay 
     Senator Eddie Lucio, Jr. 
     Senator Steve Ogden 
     Senator Carlos Truan 
     Senator John Whitmire 
     Senator Judith Zaffirini 
                                            
                                         ***** 
      
     The chair called the meeting to order at 8:05 a.m.  There being a quorum  
     present, the following business was transacted:   
      
     The Committee began its markup session on the General Appropriations Bill  
     (Senate Bill 1).  Senator Ellis recognized  Senator Jackson, Chairman of  
     the work group for Regulatory (Article VIII), to present the work group  
     recommendations to the full committee on the following agencies: 
      
          REGULATORY (ARTICLE VIII) 
          Board of Public Accountancy  
          State Office of Administrative Hearings 
          Board of Architectural Examiners 
          Board of Barber Examiners 
          Board of Chiropractic Examiners 
          Cosmetology Commission 
          Credit Union Department 
          Texas State Board of Dental Examiners 
          Board of Professional Engineers 
      
          Finance Commission of Texas 
               Department of Banking 
               Office of Consumer Credit Commissioner 
               Savings and Loan Department 
          Funeral Services Commission 
          Department of Insurance 
          Office of Public Insurance Counsel 
          Board of Professional Land Surveying 
  
          Department of Licensing and Regulation 
          Board of Medical Examiners 
          Board of Nurse Examiners 
          Board of Vocational Nurse Examiners 
          Optometry Board 
          Structural Pest Control Board 
          Board of Pharmacy 
          Executive Council of Physical Therapy and Occupational Therapy  
     Examiners 
          Board of Plumbing Examiners 
          Board of Podiatric Medical Examiners 
          Board of Examiners of Psychologists 
          Racing Commission 
          Securities Board 
          Board of Tax Professional Examiners 
          Board of Veterinary Medical Examiners 
          Health Professions Council 
      
     The Committee adopted specific items included in the Legislative Budget  
     Board (LBB) markup documents for each agency.  Final action will be taken  
     on adopted items at the end of the markup process. 
      
     Action taken on items not included in the LBB markup documents included the  
     following: 
      
          State Office of Administrative Hearings:  Senator Jackson proposed two  
                   Rider 1 - Direct Funding for Agencies.  Instead of interagency  
          contracts use direct GR funding. 
         Rider 2 -Administrative Law Judges (FTE Explanation:  Rider is for an  
         increase of 1 FTE in the cap; However, funding is for a total of 5  
         FTE's due to SOAs unfunded FTEs currently allowed. (Contingent upon  
         Rep. Ray Allen's DWI Bill).  Without objection, both riders were  
         adopted. 
      
          Board of Architectural Examiners:  Senator Jackson proposed one rider. 
         Rider 1 - Directs funding for an FTE to be used jointly by the Board of  
         Architectural Examiners and the Board of Professional Engineers to  
         develop a new licensing system for both the agencies.  Without  
         objection, rider was adopted. 
      
          State Board of Dental Examiners: 
         Authority and funding for an additional Investigator III position for  
         enforcement. (1FTE).  Without objection, work group recommendation was  
         adopted. 
      
          Finance Commission of Texas:  Senator Jackson proposed one rider.  
          Rider 1 - Adopt Sunset recommendation and eliminate all reference to  
     the Finance Commission as an 
          independent agency. Duties will be divided between Department of  
         Banking, Office of Consumer Credit Commissioner, Savings and Loan  
         Department.  Without objection, rider was adopted. 
      
          Savings and Loan Department:  
          3 FTEs (3 Mortgage Broker Investigators).  Without objection, work  
     group recommendation was adopted. 
           
          Texas Department of Insurance:  
         Elimination of Rider #8, Maintenance Tax on Gross Premiums.  Without  
         objection, work group recommendation was adopted. 
      
          Board of Professional Land Surveying:. 
         Increase of General Revenue Funding for (1 FTE) Investigator III &  
         purchase of Scantron Optical Reader for grading of exams.  Without  
         objection, work group recommendations were adopted. 
      
          Department of Licensing and Regulation:  Senator Jackson proposed one  
     rider. 
          Rider 1 - Restore   of lapsed appropriations authority. 
         1 FTE (Boiler Inspection Specialist)  Without objection, Rider #1 and  
         work group recommendation were adopted. 
      
          Board of Medical Examiners:  On hold 
      
          Board of Vocational Nurse Examiners:  
         Increase funding for migration of data to computer system.  Without  
         objection, work group recommendation was adopted. 
      
          Board of Pharmacy: 
         Funding for the registration of Pharmacy Technicians, as amended.   
         Without objection, work group recommendation, as amended, was adopted.  
      
          Board of Plumbing Examiners: 
          2 FTEs (Field representatives/Investigators).  Without objection, work  
     group recommendation was adopted. 
      
          Board of Podiatric Medical Examiners: 
         Contracted medical reviewers for complaint files and expert testimony  
         at (SOAH).  Without objection, work group recommendation was adopted. 
      
          Board of Examiners of Psychologists: 
         Funding for licensing system (Northrup Grumman).  Without objection,  
         work group recommendation was adopted. 
      
          Securities Board:  
          Funding for San Antonio Enforcement Office & reduce inspection cycle  
         from 8.5 years to 7 years.  Without objection, work group  
         recommendations were adopted. 
      
          Health Professions Council:  Senator Jackson proposed  one rider. 
         Rider 1 - Increase funding for optical imaging system maintenance and  
         upgrades, copy machine service contracts, and for contracted network  
         system support services.  Without objection, rider was adopted. 
      
         John O'Brien, of the LBB, requested authority to make technical  
         corrections in accordance with budgetary and FTE decisions made by the  
         Committee.  Without objection, it was so ordered. 
      
     Senator Fraser, Chairman of  the work group on Workers' Compensation  
     Issues, was recognized to present the work group recommendations to the  
     full Committee on the following: 
          Workers' Compensation Issues 
          State Office of Risk Management 
          Workers' Compensation Commission 
          Research and Oversight Council on Worker's Compensation 
           
     The Committee adopted specific items included in the Legislative Budget  
     Board (LBB) markup documents for each agency. Final action will be taken on  
     adopted items at the end of the markup process. 
      
     Action taken on items not included in the LBB markup documents included the  
     following: 
      
          State Office of Risk Management: Senator Fraser proposed one rider. 
         Rider 1 - to authorize SORM to use specified percentage of claims fund  
         for certain administrative functions that contain costs and detect  
         fraud, etc. (This rider could decrease the overall general revenue  
         needed to fund SORM's administrative costs). Exceptional items;  
         implementation of toll-free call line, Claims Processing caseload  
         reduction (4 FTEs), increase travel cap and fund e-government  
         initiative.  Without objection, Rider 1 and exceptional items were  
         adopted. 
           
          Workers Compensation Commission: 
         Exceptional item; funding for (4 - 5) additional FTEs for the Ombudsmen  
         Program. Without objection, the exceptional items were adopted.   
      
          Research & Oversight Council on Worker's Compensation: 
         Exceptional items; Funding for an additional Researcher V and UB  
         authority.  Without objection, the exceptional items were adopted. 
      
     Witnesses called on to answer question of the Committee are shown on the  
     attached list. 
      
     The chair laid out SB519 and recognized the author, Senator Shapleigh, to  
     explain the bill.  Senator Lucio, Jr. sent up Committee Amendment 1 and  
     moved adoption; without objection, the amendment was adopted.  Senator  
     Ellis moved that SB519, as amended, be reported back to the Senate with the  
     recommendation that it do pass and be printed.  The motion carried with a  
     record vote of 10 ayes, 0 nay, 0 present not voting, and 3 absent.  Senator  
     Truan moved that the bill be recommended for placement on the Local &  
     Uncontested Calendar; without objection, it was so ordered.   
      
     The chair laid out SB174 and recognized the author, Senator Duncan, to  
     explain the bill.  Witnesses testifying and registering on the bill are  
     shown on the attached list.  The chair moved that the public testimony be  
     closed; without objection, it was so ordered.  Senator Ellis moved that  
     SB174 be left pending; without objection, it was so ordered.   
     The chair laid out SJR6 and recognized the author, Senator Duncan, to  
     explain the bill.  Witnesses testifying and registering on the bill are  
     shown on the attached list.  The chair moved that the public testimony be  
     closed; without objection, it was so ordered.  Senator Ellis moved that  
     SJR6 be left pending; without objection, it was so ordered.   
      
     Senator Haywood, Chairman of the work group on E-Texas Recommendations, was  
     recognized to present work group recommendations to the full Committee.   
     Recommendations are sorted by E-Texas topic into three tiers: 
          Tier 1: includes recommendations that are projected to generate short  
     or long-term savings to the state. 
          Tier 2: recommendations may incur some cost, but are long-term  
     investments in Texas Government's 
          efficiency and savings generators. 
          Tier 3: are recommendations with cost or not filed for legislation.  
     (Report attached) 
      
     Senator Haywood moved adoption of the report (the report is not an  
     endorsement of any of the bills, it is only clarification of the bills).   
     Without objection, the E-Texas report was adopted. 
      
     There being no further business, Senator Lucio, Jr. moved that the  
     Committee stand recessed until 8:00 am, Tuesday, February 27, 2001.   
     Without objection, it was so ordered.   
      
     _____________________________ 
     Senator Rodney Ellis, Chair 
      
     _____________________________ 
     Myra  J. Schmitt, Clerk