MINUTES SENATE INTERIM COMMITTEE ON ECONOMIC DEVELOPMENT Wednesday, September 24, 1997 9:30 am Senate Chamber ***** Pursuant to a notice posted in accordance with Senate Rule 11.11, the organizational meeting of the Senate Interim Committee on Economic Development was held on Wednesday, September 24, 1997 in the Senate Chamber at Austin, Texas. ***** MEMBERS PRESENT: MEMBER ABSENT: Senator David Sibley Senator Florence Shapiro Senator Rodney Ellis Senator Tom Haywood Senator Frank Madla Senator Steve Ogden Senator Eliot Shapleigh ***** The Chair called the meeting to order at 9:35 a.m. There being a quorum present, the following business was transacted. Chairman Sibley advised that the Committee would focus on the portion of the interim charges relating to telecommunications and HB 2128, 74th Legislature, at this hearing. The Chair also advised that the order of business as shown on the agenda would be reversed and testimony from the invited panelists would be heard, followed by the regulatory update by Pat Wood, Chairman of the Public Utility Commission. The Chairman then called the invited panel to present their testimony and respond to members' questions. The panel testified on the following telecommunications issues: Status of Competition in the Local Market Use of Resale, Unbundled Network Elements and Facilities Based Competition Universal Service and Access Charge Reform Arbitration Agreements Impact of the FCC's Ameritech decision on Southwestern Bell entering the Interlata Long Distance Market The panelists were: David Cole, representing Southwestern Bell Rian Wren, representing AT&T Bill Mundy, representing GTE Alfred Herrera, representing MCI Suzie Ray McClellan, representing the Office of Public Utility Counsel At 10:50 a.m., Chairman Sibley called Pat Wood, Chairman, and Judy Walsh, Commissioner, Public Utility Commission, to present a regulatory update on the implementation of HB 2128, 74th Legislature. The Chair advised that the panel would return to answer additional questions from the members upon completion of Chairman Wood and Commissioner Walsh's update. At 11:20 a.m., the panelists were recalled to respond to further questions from the members, and to present their closing remarks. The Chair then advised that public testimony would be heard and called the first witness, Janee Briesmeister, representing Consumers Union. Ms. Briesmeister's testimony was followed by Charles Land, representing the Texas Association of Long Distance Telephone Companies. Upon completion of public testimony, Gwen Stafford, Vice Chair, and Arnold Viramontes, Director, Telecommunications Infrastructure Fund Board, presented an update on the Telecommunications Infrastructure Fund, and responded to members' questions. There being no further business, at 12:25 p.m. Chairman Sibley moved that the Committee stand recessed subject to the call of the Chair. Without objection, it was so ordered. __________________________ Senator David Sibley, Chairman __________________________ Barbara Henderson, Clerk