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  
         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