MINUTES 
                                           
                     JOINT INTERIM COMMITTEE ON HEALTH SERVICES 
                             Tuesday, October 30, 2001 
                                      10 a.m. 
                                   Senate Chamber 
                                           
                                       ***** 
                                           
         Pursuant to a notice posted in accordance with Senate Rule  
         11.18, a public hearing of the Joint Interim Committee on Health  
         Services was held on Tuesday, Oct. 30, 2001, in the Senate  
         Chamber at Austin, Texas. 
          
                                       ***** 
                                           
         MEMBERS PRESENT:                        MEMBERS ABSENT: 
         Senator Judith Zaffirini, Senate Chair  Senator Robert Duncan 
         Senator Jane Nelson                     Senator Steve Ogden 
         Senator Eliot Shapleigh                 Representative Craig  
                                                 Eiland 
         Representative Patricia Gray, House Chair    Representative  
                                                 Arlene Wohlgemuth 
         Representative Garnet Coleman 
         Representative Kyle Janek 
                                           
                                       ***** 
                                           
         The Senate members were called to order by Chair Zaffirini, and  
         the House members were called to order by Chair Gray.  The  
         hearing convened at 10 a.m., and a quorum was established at  
         10:40 a.m.  The following business was transacted: 
          
         Chair Zaffirini and Chair Gray made opening remarks and welcomed  
         members and staff to the hearing. 
          
         Chair Zaffirini read the interim charges issued by Lt. Gov.  
         Ratliff and Speaker Laney and announced that the committee would  
         consider administrative matters and hear testimony from invited  
         witnesses. 
          
         The chairs called invited witnesses to brief the committee  
         members. 
          
         The following persons provided oral testimony: 
          
              Don Gilbert, commissioner, Health and Human Services  
              Commission, answered questions from the committee and  
              provided a detailed presentation concerning health services  
              and the status of his agency's cost-savings strategies in  
              light of Medicaid cost containment directives issued by the  
              77th Legislature. 
          
              Kelly Furgeson, Legislative Budget Board, answered  
              questions and spoke briefly about funding for Health and  
              Human Services Programs. 
          
              Paul Priest, Legislative Budget Board, answered questions  
              and presented an overview of actions taken by the 77th  
              Legislature regarding Medicaid, Tobacco Funding, Children's  
              Health Insurance Program (CHIP) and other provisions. 
               
              Phyllis Coombs, Office of the State Comptroller, answered  
              questions and provided a report about healthcare spending. 
          
         Chair Zaffirini laid out the interim rules and proposed  
         amendments to the rules for the Joint Interim Committee on  
         Health Services and called for  revisions.  There being none,  
         Representative Janek moved their approval.  There being no  
         objection, the rules, as amended, were adopted by unanimous  
         consent.  
          
         The chairs and members introduced their staff representatives  
         and committee staff members.   
          
         Chair Zaffirini and Chair Gray thanked all who were present and  
         testified. 
          
         With no other business to come before the committee, the chairs  
         recessed the committee by unanimous consent at 1:12 p.m.,  
         subject to the call of the chairs. 
          
         ___________________________ 
         Senator Judith Zaffirini,  Senate Chair 
          
         _______________________________ 
         Representative Patricia Gray, House Chair 
          
         ______________________ 
         Amber Martin, Clerk