Tuesday, September 22, 1998 
                                     9:30 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 Tuesday, September 22, 1998  
         in the Senate Chamber at Austin, Texas.   
         MEMBERS PRESENT:                        MEMBERS ABSENT: 
         Senator David Sibley, Chairman          Senator Rodney Ellis 
         Senator Tom Haywood                     Senator Frank Madla 
         Senator Steve Ogden 
         Senator Florence Shapiro 
         Senator Eliot Shapleigh 
         Chairman Sibley called the meeting to order at 9:40 am.  There  
         being a quorum present, the following business was transacted.   
         The Chairman announced that he would make a statement and  
         following his statement, the Committee would discuss draft  
         recommendations on Interim Charge #1 regarding the Texas  
         business climate.  Upon completion of the business climate  
         discussion, Pat Wood, Chairman of the Public Utility  
         Commission, would update the Committee on the implementation  
         of HB 2128 on telecommunications, Interim Charge #4. 
         Upon completion of his statement, Chairman Sibley laid out the  
         draft of the Economic Development business climate program and  
         called Amy Spiro, senior policy analyst for the Economic  
         Development Committee, to explain the draft recommendations.   
         Ms. Spiro then responded to members' questions. 
         The Chairman called Mike Reissig, Chief Revenue Estimator with  
         the Comptroller's Office, as a resource witness to respond to  
         questions concerning the investment yields of state treasury  
         dollars.  Billy Hamilton, consultant, testified as a resource  
         on state fiscal issues and franchise tax credits. 
         At 10:55 am, Chairman Sibley called a 5 minute break.  At  
         11:00 am the Committee reconvened and the Chairman called Pat  
         Wood for a status report on the implementation of HB 2128,  
         passed by the Legislature in the 1995 regular session.  Upon  
         completion of his testimony, Mr. Wood responded to members'  
         Chairman Sibley then announced that he did not anticipate  
         holding another meeting of the Interim Committee on Economic  
         Development.  The business climate draft report will be  
         circulated among the Committee members for any suggested  
         changes.  If there are no changes, a signature sheet will then  
         be circulated for members' approval of the final report. 
         There being no further business, at 11:40 am Chairman Sibley  
         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