Tuesday, February 18, 2003 
                                     9:00 a.m. 
                      Betty King Committee Hearing Room, 2E.20 
         Pursuant to a notice posted in accordance with Senate Rule  
         11.18, a public hearing of the Senate Committee on Business &  
         Commerce was held on Tuesday, February 18, 2003, in the Betty  
         King Committee Hearing Room, 2E.20, at Austin, Texas. 
         MEMBERS PRESENT:                        MEMBERS ABSENT: 
         Senator Troy Fraser, Chairman           None 
         Senator Kip Averitt, Vice Chairman 
         Senator Kenneth Armbrister 
         Senator Kim Brimer 
         Senator Craig Estes 
         Senator Mike Jackson 
         Senator Eddie Lucio, Jr. 
         Senator Leticia Van de Putte 
         Senator Tommy Williams 
         Chairman Fraser called the meeting to order at 9:10 a.m.  There  
         being a quorum present, the following business was transacted:   
         The Chairman laid out SB 14, pending in Committee.  He then laid  
         out SB 400 and recognized the author, Senator Van de Putte.   
         Senator Van de Putte explained the difference between the bill  
         as filed and the proposed substitute, provided to the members.   
         Chairman Fraser advised that the substitute would not be adopted  
         at this time but it would be used as a reference. 
         Chairman Fraser called Philip Presley, Texas Department of  
         Insurance, to respond to members' questions.  Jose Montemayor,  
         Commissioner, Texas Department of Insurance was then called to  
         At 10:32 a.m. Senator Armbrister assumed the chair, and at 10:43  
         the Chairman recessed the hearing until 15 minutes after  
         adjournment.  There being no objection, it was so ordered. 
         At 12:38 p.m. the Committee reconvened, and Senator Fraser  
         resumed the chair.  The Chairman advised that invited testimony  
         would commence and called D. J. Powers, representing AARP, to  
         present his testimony.  Commissioner Montemayor was then  
         recalled for further testimony. 
         Following the Commissioner's testimony, Jim Sylvester, Financial  
         Manager for the State of Texas, State Farm Insurance, testified  
         and responded to members' questions.   
         Upon completion of Mr. Sylvester's testimony, the remaining  
         invited witnesses presented their testimony.  These witnesses  
         are shown below: 
              Cyndi Taylor Krier, USAA, San Antonio, 
              Donald Ahrens, First Vice President, Germania Farm Mutual  
         Insurance Company, 
              Bruce Milligan, President, Republic Lloyds, and 
              Rod Bordelon, Office of Public Insurance Counsel. 
         Chairman Fraser moved that SB 14 and SB 400 be left pending;  
         without objection, it was so ordered.   
         There being no further business, at 4:53 p.m. Chairman Fraser  
         moved that the Committee stand recessed subject to the call of  
         the chairman.  Without objection, it was so ordered.   
         Senator Troy Fraser, Chairman 
         Barbara Henderson, Clerk