Tuesday, May 18, 2004 
                                     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, May 18, 2004, in the Betty King  
         Committee Hearing Room, 2E.20, at Austin, Texas. 
         MEMBERS PRESENT:                        MEMBERS ABSENT: 
         Senator Troy Fraser, Chairman           Senator John Carona 
         Senator Kip Averitt, Vice Chairman      Senator Craig Estes 
         Senator Kenneth Armbrister              Senator Mike Jackson 
         Senator Kim Brimer 
         Senator Eddie Lucio, Jr. 
         Senator Leticia Van de Putte 
         Chairman Fraser called the meeting to order at 9:04 a.m.  There  
         being a quorum present, the following business was transacted:   
         The Chairman made opening remarks and advised that the Committee  
         would hear invited testimony regarding telecommunications policy  
         in the state.  Chairman Fraser stated that the Committee would  
         hear a complete "state of the industry" report from the Public  
         Utility Commission (PUC) that will serve as a background for  
         further hearings on this subject, as well as an overview of the  
         broadband market. 
         Upon completion of Chairman Fraser's opening remarks, the  
         Chairman called the first invited witness, Paul Hudson, Chairman  
         of the PUC.  Chairman Hudson presented a brief review of  
         telecommunications competition in Texas.   
         During Chairman Hudson's testimony, Chairman Fraser called the  
         next invited witness, Julie Parsley, Commissioner, PUC to  
         respond to members' questions.  Upon completion of Chairman  
         Hudson's testimony, Commissioner Parsley gave a broadband  
         overview.  The Commissioner's testimony covered broadband  
         platforms; growth and mix in Texas; state jurisdiction over retail broadband; and focus on broadband over power lines and voice  
         over internet protocol. 
         There being no further business, at 11:26 a.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 
         Tatum Baker, Clerk