MINUTES SENATE COMMITTEE ON NOMINATIONS Monday, April 25, 2005 2:00 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, April 25, 2005, 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 Kevin Eltife Senator Mike Jackson Senator Eddie Lucio, Jr. Senator Jane Nelson ***** The chair called the meeting to order at 3:35 p.m. There being no quorum present, the following business was transacted: The following members arrived after the roll was called: Senator Barrientos, Senator Jackson, Senator Lucio. Chairman Lindsay announced that introductions would be made as the Senators' schedules allowed and informed the committee that two of the nominees to the Texas State Board of Medical Examiners, Christine Canterbury, M.D. and Amanullah Khan, M.D.,PhD. would not be appearing and that their letters of explanation were in the member's binders. Chairman Lindsay recognized Senator Todd Staples to introduce his constituent Keith Miller, a nominee to the Texas State Board of Medical Examiners. Staples commended Miller on his unique and dynamic perspective. Chairman Lindsay recognized Senator Tommy Williams who introduced Melinda Fredricks, nominee to the Texas State Board of Medical Examiners. Fredericks is a Conroe resident with countless hours of volunteer work and a masters degree in Education. Chairman Lindsay introduced Annette Raggette since Senator Ogden could not attend. Raggette gave a few comments about her education and background, saying she is an attorney specializing in labor relations for hospitals and nursing homes. Senator Troy Fraser was recognized to introduce Dr. Larry Price, associate professor at A & M Health and Sciences Center, and senior cardiologist at Scott and White Hospital in Belton. Chairman Lindsay introduced Tim Turner, nominee to the Texas State Board of Medical Examiners and a constituent of Senator Kyle Janek. Chairman Lindsay invited the Texas State Board of Medical Examiners nominees to the table and asked them if the passage of SB 104 was producing any positive results and how it was working. Larry Price said SB 104 helped in funding which intensified disciplinary actions and helped improve efficiency. Fredericks replied that she does not have a sense of history, but conversations with staff convinced her that the board was more effective now. Turner called the changes dramatic and thanked the committee members for SB 104 funding. Raggette told the members that SB 104 increased accountability and enforcement. Miller informed the committee that he had been a consultant to the board for a dozen years before serving and brought up an example of a distressful case in which he had made one negative remark and the opposing lawyer said he was too hard on doctors. He told the committee they should be very confident in this board. Anderson said SB 104 helped them with investigation, litigation and enforcing compliance. They also have different drug testing abilities for fulltime employees. Anderson stressed that compliance is now within 180 days of investigation. The Chair recognized Vice-Chair Deuell who asked about restrictions and suspensions. Anderson said that most are substance abuse cases. Chairman Lindsay asked how many complaints per month. Anderson quoted the monthly figure at 500 with 6000 cases per year, and of these 6000, about 2000 are valid. Raggette added that there has been a large growth of complaints. Chairman Lindsay asked them to describe the process and the entire team explained the steps involved in handling a complaint. He also asked them at what point the public was made aware. Anderson told the members that the need- to- know entities, such as insurance companies and hospitals, are given the information. The chair recognized Barrientos who held up some newspapers featuring articles concerning doctors who practice even after disciplinary actions are taken against them. Anderson said that the board's responsibility to decide if doctors practice at all or with restrictions, and then make those findings known to the public. He continued, saying that it is up to a hospital or other employers to check credentials and make the decision whether or not to hire the doctors. Barrientos asked the board if they felt like it is their responsibility to keep eye on the restricted doctors; Fredericks replied that a lot of doctors are under board order and tracked by the compliance board, Turner said the board could always do more. He also told the panel that a hospital would be inclined to hire a doctor under board order if they needed one with a certain specialty. Barrientos again referenced the newspaper article and asked that they keep up on the issue telling them that the body has problems. Anderson said that currently there are 502 doctors under board orders and practicing under supervision. Barrientos again picked up one of the articles and read about a doctor in Pasadena being sued 60 times; the nominees all said that they were familiar with the case, that it involved the largest finer ever levied against a doctor and that the doctor will never work again in Texas. Anderson informed the committee that SB 104 was not in effect when that doctor's case was handled and Raggette said that there has been an improvement in the number of orders since the implementation of SB 104. A quorum was established at 4:15 p.m. Roll was called and the minutes from the previous meetings were adopted. Senator Eltife moved that a vote be taken on the nominees to the Texas State Board of Medical Examiners. At 4:16 p. m., the committee voted by 7 ayes, 0 nays to recommend them to the full Senate for confirmation. Chairman Lindsay asked the nominees to the Texas State Affordable Housing Corporation Board of Directors to come forward. The chair informed the committee that two of the nominees, Christopher DeCluitt and Jo Van Hovel had been excused from appearing and that letters of explanation were submitted in their binders. Chairman Lindsay introduced Thomas Leeper in lieu of Senator Ogden and Charles Rencher and Jerry Romero introduced themselves. Lindsay recognized Romero as chairman of the board and asked him to provide an overview of the entity. Romero said they serve mainly rural and border markets but can also answer to the needs of some urban markets. He told the members that they receive no federal grants but are funded by program fees. Chairman Lindsay asked how the state agency entertwined with local entities, Romero named the 501 3C bond issue as an example of good partnership between local and state. Chairman Lindsay asked if they really needed the position statement that they requested in letter form from Senators and representative' offices, Romero replied that if they see an elected official is behind it then it shows that the community is also in favor. Senator Barrientos moved to vote on the nominees to the Texas State Affordable Housing Corporation Board of Directors and at 4:25 p.m., the committee voted by 7 ayes, 0 nays to recommend the nominees to the full Senate for confirmation. The chair recognized the appointee for the Adjutant General of Texas, Brigadier General Charles Rodriguez, to make a few brief comments about himself and to answer a few questions. General Rodriguez described the dual status of his position: he is a full-time employee of the state of Texas overseeing around 600 state employees, as well as the Commander of the Army and National Guard in Texas supervising around 19,000 enlisted soldiers plus the uniformed officers. He added that, outside of Texas, his position is federally recognized. Chairman Lindsay asked General Rodriguez if it was tough to recruit and he answered that it was not difficult in Texas. He named their biggest challenge as taking care of the families. When asked in what area of study he earned his Ph.D., Rodriguez quipped "Philanthropic Leadership". Chairman Lindsay recognized Barrientos who asked Rodriguez to identify their current needs. Rodriguez said they are more concerned with potential needs and analyzing hypothetical "What would it take?" scenarios, all of which indicate the necessity of monetary aid totaling many millions of dollars. Barrientos asked if the Guard had border protection responsibilities, Rodriguez answered that most would center around counter-drug and aviation surveillance at the request of law enforcement. Law enforcement does not have the technical capability for the type of aerial surveillance that the Guard can provide. Rodriguez told the committee that there are armories but no troops deployed along the Texas- Mexico border. General Rodriguez was asked to provide ethnic and gender breakdowns, recruitment goals and the number of soldiers who were wounded in action or killed while serving in the Texas guard. Out of the 19,000 soldiers in Texas guard, 15 % are female. Of the remaining males, 50 % are non-hispanic/ white, 20% are Hispanic and 11 % are African-American. He added that the guard is offering attractive incentives to enlist 4,000 per year, which is their recruitment goal, and that the number of applicants has increased since 911 with last year being t he best ever. He listed seven soldiers as wounded in action (WIA) and one as a combat death. Barrientos yielded to Senator Lucio who commented that General Rodriguez was replacing one of his very dear friends. Lucio added that he has always been very interested in the state guard and its' plans for the future. Barrientos asked questions about family access to health care and the healthcare system in general. General Rodriguez assured the committee that after the preparation of the troops, taking care of the families was their highest priority. He described the infrastructure of family support including the regional and national parameters. Barrientos asked for a breakdown of the top officers, General Rodriguez did not have it but said he would provide it to the committee. Barrientos asked him how he got his nomination to West Point and General Rodriguez stated that his father Joseph Rodriguez was awarded the Congressional Medal of Honor. Senator Eltife moved that the committee vote on General Rodriguez' nomination for Adjutant General of Texas. At 4: 50 p.m., by a vote of 7 ayes and 0 nays, General Rodriguez was recommended to the full Senate for confirmation. Chairman Lindsay recognized Vice-Chairman Deuell who introduced the Honorable George W. "Bill" Ceverha, the Speaker's appointee to the Employees Retirement System Board of Directors. Ceverha told the committee that the board is a mentally stimulating one that oversees 275 employees while managing a $20 billion fund and large healthcare system. Vice-Chairman Deuell asked where the system is financially. Ceverha said it is 97% fully funded, adding that if the legislature had not declined to put in its normal share, it would be 100% funded. Ceverha stressed that the board takes a very conservative fiscal approach. Commenting on the heathcare system, Ceverha said there will be a slight increase in cost of dependent coverage. Commenting on Merck/ Medco's trouble that has put them on the radar screen, he told the committee that cost containments and rebates are pretty controlled. Vice-Chairman Deuell called Ceverha a class act and commended him on his service. Chairman Lindsay recognized Barrientos who asked Ceverha if he supported the current level of the system. The answer was yes he was satisfied with the current level. Barrientos asked if he was satisfied with the cost of heathcare. Ceverha said he would love to be able to provide it for free and is working to contain costs, but reminded the committee that the board will have to increase dependent coverage. Ceverha commented on whether it was appropriate for the legislature to decrease its return saying there is a moral and legal contract for both sides. Barrientos asked about the ERS Trust Fund. Ceverha said there is a good balance, that maybe they could realize more return if they invested in higher risk ventures but they are taking a very conservative approach. Barrientos asked Ceverha if it is appropriate for an appointee to serve on a board while soliciting money for a PAC. Ceverha's reply was that situation has not occurred. At 5:05 p.m., Chairman Lindsay announced that the nomination of the Honorable George W. "Bill" Ceverha to the Employees Retirement System Board of Directors would be left pending in today's committee and voted out on the following day at his desk in the Senate Chamber upon adjournment. Chairman Lindsay asked for a motion on all the nominees to the non -appearing entities. Senator Jackson moved that the committee vote on all said nominees. At 5:05 p.m., by a vote of 7 ayes, 0 nays, the committee recommended all nominees to the following entities be sent to the full Senate for confirmation: the Finance Commission of Texas, the Manufactured Housing Board, the Texas Public Finance Authority, the Sabine River Compact Administration, the State Office of Risk Management and the Sulphur River Basin Authority Board of Directors. There being no further business, at 5:06 p.m., Senator Lindsay moved that the Committee stand recessed subject to the call of the chair. Without objection, it was so ordered. _____________________________ Senator Jon Lindsay, Chair _____________________________ Jazen Wood, Clerk