MINUTES
SENATE COMMITTEE ON FINANCE
Subcommittee on Interim Subcommittee on Taxes
Tuesday, February 26, 2002
1:30 p.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 Tuesday, February 26, 2002, in the Capitol Extension,
Room E1.036, at Austin, Texas.
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MEMBERS PRESENT: MEMBERS ABSENT:
Senator Rodney Ellis Senator Jon Lindsay
Senator Chris Harris Senator Eddie Lucio, Jr.
Senator Gonzalo Barrientos Senator John Whitmire
Senator Robert Duncan
Senator Troy Fraser
Senator Mike Jackson
Senator Steve Ogden
Senator Todd Staples
Senator Carlos Truan
Senator Judith Zaffirini
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The chair called the meeting to order at 1:33 p.m. There being
a quorum present, the following business was transacted:
The Chair made opening remarks and proceeded with the hearing as
follows:
The committee considered invited testimony from the following:
James Le Bas, with the Comptroller's Office, presented
requested information from the December 5, 2001 hearing
packet entitled Texas Taxes. Mr. Le Bas remained present
for the duration of the hearing to answer questions that
surfaced from each agency;
Steve Stephens, with the Texas Strategic Economic Planning
Commission, gave an overview of the Commission's five goals
for the plan with specific strategies and recommendations
for each;
Bill Allaway and Dale Craymer, representing the Texas
Taxpayers and Research Association, gave a brief overview
on taxing Texas businesses;
John Hurd and Edmund Segner, representing Texas Oil and Gas
Association, answered questions and gave a brief overview
on the economic impact of the Oil and Gas industry;
Shawn McKenzie, representing Southwestern Bell
Communications, gave an overview on telecommunication taxes
in Texas verses other states. He also answered questions
and touched on the telecommunication industry taxes versus
general business in Texas;
Cindy Gonzales, representing Verizon, answered questions
from the committee on telecommunication taxes;
Paul Stevens, representing Southwestern Bell
Communications, answered questions on state and local taxes
regarding telecommunications;
Ira Lipstet, representing Texas Society of CPAs, answered
questions from the committee;
Dan Hagan, representing American Airlines, answered
questions about airline taxes;
Nene Foxhall, representing Continental Airlines, answered
questions about airline taxes;
Ron Ricks, representing Southwest Airlines, answered
questions about airline taxes;
Jim Woodrick, representing Texas Chemical Association,
answered questions from the committee and provided written
testimony;
Greg Cardwell, representing E.I. Dupont, provided the
committee with information on state and local taxes and how
they compare to other states where Dupont operates;
Ron Dipprey, representing Dow Chemical Company, gave a
brief presentation and answered questions from the
committee;
Robert Hogue, Patrick Carter and Judson Somerville,
representing Texas Medical Association, provided a
presentation on healthcare and answered questions;
Will Davis, representing Texas Association of Life & Health
Insurance, answered questions;
Forrest Roan, representing American Insurance Association,
provided a presentation and answered questions;
Cindy Ohlenforst answered questions from the committee;
Geoff Wurzel, representing National Semiconductor/AeA, and
Pat Motola, representing AeA/High Tech Industry, gave a
presentation and answered questions from the committee;
Charlie Smith, representing Reliant Energy, briefed the
committee and answered questions;
Marc Moseley, representing AECT Tax Committee, briefed the
committee and answered questions;
Eric Craven, Texas Electric Cooperatives, briefed the
committee and answered questions;
The committee considered public testimony from the following:
Dick Lavine, representing the Center for Public Policy
Priorities;
Barbara Hankins, representing League of Women Voters of
Texas;
Cyrus Reed, representing Texas Center for Policy Studies;
Tom Kowalski, representing the Texas Healthcare &
Bioscience Institute.
There being no further business, at 6:55 p.m. Senator Ellis
moved that the Committee stand recessed subject to the call of
the chair. Without objection, it was so ordered.
______________________
Senator Rodney Ellis, Chair
______________________
Amber Martin, Clerk