MINUTES
SENATE COMMITTEE ON BUSINESS & COMMERCE
Wednesday, March 24, 2004
9:30 a.m.
Betty King Committee Hearing Room, 2E.20
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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 Wednesday, March 24, 2004, in the Betty
King Committee Hearing Room, 2E.20, at Austin, Texas.
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MEMBERS PRESENT: MEMBERS ABSENT:
Senator Troy Fraser Senator Kenneth
Armbrister
Senator Kip Averitt Senator Mike Jackson
Senator Kim Brimer Senator Leticia Van de
Putte
Senator Craig Estes
Senator Eddie Lucio, Jr.
Senator Tommy Williams
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Chairman Fraser called the meeting to order at 9:36 a.m. There
being a quorum present, the following business was transacted:
Chairman Fraser welcomed members and others present to the first
interim meeting of the Business and Commerce Committee. The
Chairman advised that copies of the Committee Rules, as adopted
at the beginning of the 78th legislative session, had been
distributed to the members for their review prior to the
meeting. The Chairman proposed that the Committee continue to
operate under the same rules during the interim unless there was
objection. Hearing no objection, it was so ordered.
The Chairman advised that, as the members are aware, the
Committee has a number of interim charges to cover during the
interim. At this hearing, the Committee would discuss and hear
both invited and public testimony on interim charge #1, relating
to the Texas unemployment compensation insurance program.
Chairman Fraser called the first invited witness, Chair Diane
Rath, Texas Workforce Commission, Commissioner Representing the
Public. The Chairman also called Ron Lehman, Texas Workforce
Commission, Commissioner Representing Employers. Chair Rath
presented an overview of the status of the Texas unemployment
insurance program. Commissioner Lehman discussed overpayments,
due particularly to fraud and abuse, and the actions that the
Texas Workforce Commission is taking to remedy the situation.
Discussion and questions followed regarding various issues
within the unemployment insurance program.
Upon completion of testimony and response to members' questions
by Chair Rath and Commissioner Lehman, Chairman Fraser called
Bill Hammond, President of Texas Association of Business. Mr.
Hammond suggested a few changes that might be made to improve
efficiency at the agency regarding unemployment insurance.
During Mr. Hammond's testimony, Chairman Fraser called Tommy
Simmons, counsel for the Texas Association of Business, to
respond to members' questions.
Chairman Fraser then called the final invited witness, Rick
Levy, representing the Texas AFL-CIO. Mr. Levy testified that
while there are cases of fraud by unemployed workers, there are
employers that are skirting their responsibilities through
loopholes and fraudulent activities as well. Mr. Levy then
presented his testimony and responded to members' questions.
Following Mr. Levy's testimony, the Chairman called for public
testimony. There being no public witnesses wishing to testify,
Chairman Fraser moved that public testimony be closed; without
objection, it was so ordered.
There being no further business, at 11:45 a.m. Senator Averitt
moved that the Committee stand recessed subject to the call of
the Chairman. Without objection, it was so ordered.
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Senator Troy Fraser, Chairman
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Tatum Baker, Clerk