MINUTES 
          
                SENATE INTERIM COMMITTEE ON ECONOMIC DEVELOPMENT 
                            Monday, December 8, 1997 
                                     9:00 am 
                                 Senate Chamber 
          
                                      ***** 
          
         Pursuant to a notice posted in accordance with Senate Rule  
         11.11, a public hearing of the Senate Interim Committee on  
         Economic Development was held on Monday, December 8, 1997 in  
         the Senate Chamber at Austin, Texas.   
          
                                      ***** 
          
         MEMBERS PRESENT:                        MEMBER ABSENT: 
         Senator David Sibley                    Senator Eliot  
         Shapleigh 
         Senator Rodney Ellis 
         Senator Tom Haywood 
         Senator Frank Madla 
         Senator Steve Ogden 
         Senator Florence Shapiro 
          
                                      ***** 
          
         The Chairman called the meeting to order at 9:30 am.  There  
         being a quorum present, the following business was transacted.   
          
         Chairman Sibley advised that the Committee would be focusing  
         on the interim charges involving insurance at this hearing.   
         The Chairman called the first invited witness, Edna Ramon  
         Butts of the Texas Department of Insurance, who briefed the  
         Committee on the implementation of SB 386, the health care  
         liability bill, including IRO rules and an update on Aetna  
         Health Plans v. TDI.  David Mattax of the Attorney General's  
         Office explained the status of Aetna Health Plans v. TDI.  Ms.  
         Butts and Mr. Mattax responded to members' questions. 
          
         The Chairman then called Lyndon Anderson of the Texas  
         Department of Insurance, who briefed the Committee on the  
         implementation of SB 1499, the policy form bill.  Mr. Anderson  
         then responded to members' questions. 
          
         An agency panel, consisting of Sandra Coaxum, Office of the  
         Attorney General, and Ann Bright, Texas Department of  
         Insurance, briefed the members on open records requests, and  
         responded to members' questions. 
          
         Upon completion of the above invited testimony, the Chairman  
         called the invited panel on disclosure of public information  
         relating to insurance to present their testimony.  The  
  
         panelists were: 
          
              Rod Bordelon, Public Insurance Counsel 
              Rob Schneider, Consumers Union 
              David Donaldson, Freedom of Information Act specialist 
              Bob Watkins, State Farm 
              Gerard Galvan, Farmers Insurance Group 
          
         Each of the above panel members made their presentations, and  
         then responded to the Committee members' questions. 
          
         Senator Ellis then asked each panelist to comment on whether  
         there is a problem with access to affordable insurance. 
          
         Upon completion of the panelists' testimony and responses to  
         the members' questions, Chairman Sibley advised that public  
         testimony would begin. 
          
         The following witnesses testified on disclosure of public  
         information related to insurance: 
          
              Mark Kincaid, representing himself 
              D. J. Powers, representing himself 
          
         At 11:45 a.m. Senator Ellis assumed the Chair.  There being no  
         further business, at 11:55 am Senator Ellis moved that the  
         Committee stand recessed subject to the call of the Chairman.   
         Without objection, it was so ordered.   
          
         __________________________ 
         Senator David Sibley, Chairman 
          
         __________________________ 
         Barbara Henderson, Clerk