SENATE COMMITTEE ON NOMINATIONS 
                               Monday, March 3, 2003 
                           3:00 p.m. or upon adjournment 
                           Capitol Extension, Room E1.016 
         Pursuant to a notice posted in accordance with Senate Rule  
         11.18, a public hearing of the Senate Committee on Nominations  
         was held on Monday, March 3, 2003, in the Capitol Extension Room  
         E1.016, at Austin, Texas. 
         MEMBERS PRESENT:                        MEMBERS ABSENT: 
         Senator Jon Lindsay                     None 
         Senator Bob Deuell 
         Senator Gonzalo Barrientos 
         Senator John Carona 
         Senator Chris Harris 
         Senator Juan Hinojosa 
         Senator Mike Jackson 
         The Chair called the meeting to order at 3:00 p.m.  There being  
         a quorum present, the following business was transacted:   
         The following members arrived after the roll was called:   
         Senator Carona, Senator Hinojosa and Senator Jackson. 
         Senator Harris moved to adopt the minutes from the previous  
         meeting.  There being no objections, the minutes were adopted.   
         Senator Ratliff introduced Mike Jones; Senator Lucio introduced  
         Joan Tavarez; Senator Madla introduced Vidal Gonzalez, and  
         Senator Wentworth introduced Suzie McClellan. 
         Senator Barrientos introduced Rebecca Klein and Julie Caruthers  
         Parsley.  Senator Harris questioned the issue of unbundling, the  
         availability of wires to homes for AT&T, the status of  
         unbundling litigation and the PUC's past trial court history.    
         Klein explained that unbundling was regulated by federal law and  
         that Texas had gone beyond the federal law.  She agreed that  
         there had been litigation and that there were cases against the  
         PUC pending but no rulings.  She agreed to get Senator  
         Barrientos the status of various cases in writing.  Senator  
         Harris questioned if there was an open case where SBC and  
         Verizon had provided lines to competitors and at a price less  
         than it costs for construction and upkeep because of unbundling  
         rules.  She agreed there was an open case that had been open for  
         a year.  Senator Harris questioned if she had talked to them and  
         had they cut back on their investment in Texas.  She had talked  
         to them.  Senator Harris questioned how Texas could have  
         economic growth when the phone companies are going to other  
         Senator Barrientos asked Parsley about the PUC budget cuts,  
         (i.e. where the cuts came and if they had laid off employees  
         before or after the 7% request by the governor).  Parsley said  
         that they had terminated 37 employees, 33 were FTE's and none  
         were terminated before the request.  They also looked at other  
         ways to cut the budget before terminating those employees.  
         Barrientos requested a list of positions making $75,000 and  
         over.  He asked how wholesale prices of electricity tripled in  
         one day.  She had two reasons for this; the temperatures dropped  
         and the curtail of the gas supply.  He questioned deregulation.   
         He also questioned Parsley about the breakdown of employees and  
         HUB's.  He then question Klein on NARUC and its purpose.  Her  
         response was that it is an umbrella organization of state  
         commissioners that interacts with the  electric and telecom  
         industries, provides forums, and tracks congressional  
         intiatives.  Barrientos questioned if she had ever lobbied the  
         FCC and about her travel schedule.  He cautioned her on her  
         spending habits and to pay attention to 5.56 of the Government  
         Senator Harris questioned her about ECI telecom and her husbands  
         ownership in some of its competitors.  He also asked if ERCOT  
         had ever traded on the public floor before.  She explained ECI  
         and that they no longer owned anything with the competitors; she  
         also stated that ERCOT had not traded publicly before.   
         Senator Lindsay questioned the book value on stranded cost, the  
         amount of oversight and the  replacement costs.   
         Senator Hinojosa asked if competition had to justify electric  
         increases.  Klein answered that there was a statute and rule  
         telling the electric companies that they had to prove why they  
         were increasing electric rates and if they did not justify  
         increases, then it would be denied.   
         The Chairman read witness forms from Philip Goldman and L.  
         Lanford, supporting the nominees to the Public Utility  
         There being no other questions the nominees was confirmed with 5  
         ayes and 0 nays 
         Suzi McClellan, with the Office of Public Utility Counsel, gave  
         her opening remarks.  Senator Hinojosa questioned if McClellan  
         had access to PUC information.  Senator Barrientos asked her who  
         her superior was.  He also questioned wholesale prices and if  
         she had enough money in her budget.  Senator Deuell questioned  
         whether she thought she should be part of the PUC or the  
         Attorney General's office or stay a separate agency.  Senator  
         Lindsay questioned stranded costs on power plants. There being  
         no other questions, the nominee was adopted with 6 ayes and 0  
         The Department of Housing and Community Affairs was introduced.   
         Senator Carona introduced Elizabeth Anderson; Senator Barrientos  
         introduced Shadrick Bogany, and Senator Hinojosa introduced  
         Mayor Norbeto Salinas.   
         Senator Barrientos talked about the agency in general and asked  
         what each thought the agency's purpose was.  They all agreed  
         that it was to serve those in need and to provide affordable  
         housing.  Hinojosa suggested the board members come up with ways  
         to buy homes without petty fees, keeping it affordable. Senator  
         Lindsay was concerned with his district's apartment construction  
         which adds more children and less tax dollars to the district. 
         The Chairman asked the committee if there was any objection to  
         voting on the nominee C. Kent Conine, even though he did not  
         appear before the committee.  Senator Barrientos said if he sent  
         a letter explaining his absence then he could be voted in; if  
         not, he would like for him to appear.  The Chairman agreed.   
         There being no other questions, Elizabeth M. Anderson, Shadrick  
         Bogany, Vidal Gonzalez, Michael Edwin Jones, Norberto Salinas  
         were adopted with 5 ayes and 0 nays.   
         The Chairman introduced, Jack L. Davis, Clement Pete Moreno and  
         Joan C. Tavarez,  the Manufactured Housing Board.  Senator  
         Harris gave Jack Davis accolades regarding his integrity.  The  
         chairman pulled Don Stouder and Cary P. Yates because of  
         absence.  There being no objection a vote was taken for Davis,  
         Moreno and Tavarez, the nominees were confirmed with 6 ayes and  
         0 nays.   
         The Chairman introduced the Board of Protective Regulatory  
         Services, John Castle and Anne Crews, each gave their opening  
         statements.  Senator Hinojosa suggested rigid training for new  
         employees.  Senator Barrientos questioned their length of time  
         on the board and would they treat their agency the same way they  
         would treat TxDOT when it came to cutting budgets.  They agreed  
         they would.  Senator Hinojosa would like for them to submit how  
         they are going to propose the 12% cut in the agency.  Senator  
         Harris went over the budget that Crews gave the Finance  
         Committee.  There being no other questions, a vote was taken.   
         There being 3 ayes and 3 present not voting, the nominees were  
         The Chairman introduced the nominees from the Texas Workers  
         Compensation Board.  Before introductions began, Senator Lindsay  
         requested another vote for the Board of Protective and   
         Regulatory Services.  There being 4 ayes and 3 present not  
         voting, the nominees were confirmed.  Senator Harris requested  
         to introduce Richard Smith, and the Chairman agreed.  Senator  
         Jackson introduced Eddie Wilkerson and Chairman Lindsay  
         introduced Mike Hachtman.  Each gave their opening remarks.   
         Senator Barrientos requested that each send in writing what  
         state had the best and the worst treatment of injured workers.   
         There being no other questions, the nominees were confirmed with  
         a vote of 5 ayes and 0 nays. 
         The Chairman asked for a motion to confirm the Angelina and  
         Neches River Authority Board of Directors, Gulf Coast Waste  
         Disposal Authority, Lower Neches Valley Authority, North Texas  
         Tollway, Authority Board of Directors, Rio Grande Compact  
         Commission, Sabine River Authority, Sabine River Compact  
         Administration and the State Board of Examiners for  
         Speech-Language Pathology and Audiology.  Senator Harris  
         motioned to confirm the nominees, Senator Barrientos 2nd the  
         nomination.  There being no questions, all nominees were adopted  
         with a vote of 5 ayes and 0 nays.   
         There being no other business at 5:45pm, Chairman Lindsay  
         announced the committee would stand in recess subject to the  
         call of the chair.  There being no objections, the committee  
         Senator Jon Lindsay, Chair 
         Tanya Tillman, Committee Clerk