MINUTES SENATE COMMITTEE ON ECONOMIC DEVELOPMENT Monday, May 15, 2000 10:00 a.m. Senate Chamber ***** Pursuant to a notice posted in accordance with Senate Rule 11.18, a public hearing of the Senate Committee on Economic Development was held on Monday, May 15, 2000, in the Senate Chamber at Austin, Texas. ***** MEMBERS PRESENT: MEMBERS ABSENT: Senator David Sibley Senator John Whitmire Senator Kenneth Armbrister Senator John Carona Senator Troy Fraser Senator Mike Jackson Senator Frank Madla ***** The Senate Economic Development Committee held a joint hearing with the Senate Health Committee to consider issues surrounding privacy. The hearing was chaired jointly by Senator Sibley and Senator Nelson. The chairs called the meeting to order at 10:10 a.m. There being a quorum present, the following business was transacted. Senator Nelson welcomed everyone attending the hearing, and thanked Senator Sibley and the Economic Development Committee members for their willingness to jointly investigate and offer recommendations to ensure that privacy protections are adequate and consistent in Texas. Senator Sibley advised that he and Senator Nelson had previously discussed the issue of privacy in general and realized that both committees were faced with privacy issues. Senator Sibley thanked Senator Nelson and stated that although the committees would not accomplish everything in one hearing, he looked forward to a beginning. Senator Nelson then called the first panel of invited witnesses to present their testimony on privacy overview. The panelists were as follows: John Ryan, Conference of State Bank Supervisors, Washington, D.C., Overview of Privacy Provisions Pertaining to the Gramm-Leach-Bliley Act. Elizabeth Rogers, Vinson & Elkins, Austin, Texas, Overview of Privacy Provisions Pertaining to the Health Insurance Portability and Accountability Act. Carolyn Purcell, Executive Director, Department of Information Resources, Overview of E-Commerce Privacy. Rebecca L. Payne, Chief, Open Records Division, Attorney General's Office, Overview of Texas' Privacy Statutes. Upon completion of the first panel members' testimony and response to committee members' questions, Senator Nelson called Panel II to present testimony on privacy of health information. The panelists were: Will D. Davis, representing Texas Association of Life and Health Insurers, Austin, Texas. Esther Nicole Cooper, MD, representing the Texas Medical Association, Dallas, Texas. A.G. Breitenstein, representing herself, Somerville, Massachusetts. Steven Palmer, representing Pharmaceutical Research and Manufacturers of America, Denver, Colorado. Lisa McGiffert, representing Consumers Union, Austin, Texas. Following testimony by Panel II and the panelists' response to members' questions, Senator Nelson called Panel III - Industry and Commerce, to present testimony on privacy of financial information. The panelists were as follows: J. Bradley Johnston, representing Temple-Inland Financial Services, Inc., Austin, Texas. Karen Neeley, General Counsel, Independent Bankers Association of Texas, Austin. Rob Schneider, representing Consumers Union, Austin, Texas. Jeff Clark, representing Alliance for Responsible Information Practices, Austin, Texas. There being no further business, at 2:20 p.m. Senator 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