MINUTES 
                                           
                         SENATE COMMITTEE ON STATE AFFAIRS 
                              Wednesday, June 7, 2004 
                                     1:00 p.m. 
                              Capitol Extension E1.030 
                                           
                                       ***** 
                                           
         Pursuant to a notice posted in accordance with Senate Rule  
         11.18, a public hearing of the Senate Committee on State Affairs  
         was held on Monday, June 7, 2004, in the Capitol Extension  
         E1.030 
          
                                       ***** 
                                           
         MEMBERS PRESENT:                        MEMBERS ABSENT: 
         Senator Robert Duncan                   Senator Ken Armbrister 
         Senator Tommy Williams                  Senator Rodney Ellis 
         Senator Frank Madla                     Senator Troy Fraser 
         Senator Jane Nelson                     Senator Chris Harris 
         Senator Florence Shapiro 
                                           
                                       ***** 
                                           
         A joint hearing of the Senate Finance Committee and the Senate  
         State Affairs Committee was held. Chairmen Ogden and Duncan  
         shared presiding duties.  
          
         Senator Duncan called the State Affairs Committee to order at  
         1:00 p.m. Senator Ogden called the Finance Committee to order at  
         1:00 p.m. 
          
         The Committee heard invited testimony on interim charge # 1  
         relating to the implementation of changes made to group health  
         insurance plans and the Finance Committee's interim charge  
         relating to revisiting the rising health care cost study of the  
         77th Legislature. 
          
         The following testified before the Committee: 
          
         -Dial, Philip S.,  Consulting Actuary (Employees Retirement  
         System), Austin, TX  
         -Fuelberg, Ann,  Executive Director (Employees Retirement  
         System), Austin, TX  
         -Hassel, Steve,  Assoc. Vice Chancellor-Human Resources (Texas  
         A&M University System),      College Station, TX  
         -Hickman, Bill,  Consultant with Gabriel, Roeder, Smith (Teacher  
         Retirement System), Irving,       TX  
         -Hightower, Allen,  Executive Director (Correctional Managed  
         Health Care), Huntsville, TX  
         -Jung, Ronnie,  (Teacher Retirment System), Austin, TX  
         -Nail, William S.,  Deputy Executive Director (Employees  
  
         Retirement System), Austin, TX  
         -Raimer, MD, Ben G.,  Physician (Correctional Managed Health  
         Care), Galveston, TX  
         -Sapp, Jr., Allen D.,  Assistant Director (Correctional Managed  
         Health Care), Huntsville, TX  
         -Sarver, James W.,  Director of Employee Group Insurance  
         (University of Texas System),          Austin, TX  
         -Stewart, Dan,  Administrator of Health Insurance (University of  
         Texas System), Austin, TX  
          
         The clerk called a joint roll call of both Committees. There  
         being a quorum of both Committees present, the following  
         business was transacted: Senator Shapiro moved the adoption of  
         the Senate State Affairs Committee rules; without objection, it  
         was so ordered. Invited testimony resumed. At 3:46 p.m., at the  
         conclusion of the invited testimony provided by the University  
         of Texas System and the Texas A&M University System, Senator  
         Duncan moved that the Senate State Affairs Committee stand  
         recessed subject to the call of the chair; without objection, it  
         was so ordered.  
          
         ______________________ 
         Senator Robert Duncan, Chair 
          
         ______________________ 
         Teddy Carter, Clerk