MINUTES
SENATE COMMITTEE ON BUSINESS & COMMERCE
Subcommittee on Interim Charge #4
Wednesday, January 9, 2002
9:30 a.m.
Capitol Extension, Room E1.016
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Pursuant to a notice posted in accordance with Senate Rule
11.18, a public hearing of the Senate Committee on Business &
Commerce, Subcommittee on Interim Charge #4, was held on
Wednesday, January 9, 2002, in the Capitol Extension, Room
E1.016, at Austin, Texas.
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MEMBERS PRESENT: MEMBERS ABSENT:
Senator Eliot Shapleigh, Chairman
Senator John Carona
Senator Troy Fraser
Senator Mike Jackson
Senator Eddie Lucio, Jr.
*****
The chairman called the meeting to order at 9:31 a.m. There
being a quorum present, the following business was transacted:
Chairman Shapleigh welcomed the members and those attending the
meeting. He advised that, in accordance with interim charge #4,
the subcommittee will monitor trends in local lending practices
in all regions of the state. The subcommittee shall determine
if the legislature should develop strategies to retain bank
deposits made by public institutions in Texas communities,
increase the number of bank "decision-making" centers in Texas,
increase the loan-to-deposit ratio in Texas, and develop
incentives for lending institutions to locate in all areas of
the state.
The chairman announced that at this meeting, the subcommittee
would hear an overview on issues from various state financial
regulators. On February 13, the subcommittee will travel to
Waco to hear about issues of credit in rural and small
communities in Texas. On March 14, the subcommittee will meet
in Dallas to hear about issues of venture capital, banking
centers, large credit and other lending issues common to urban
and fast-growth areas. Then, in April the subcommittee will
meet in El Paso to look at trade corridor, border and minority
issues.
Chairman Shapleigh then called the first invited witness, Dr.
Steve Murdock, State Demographer, Texas A&M University, to
present an overview of recent and future trends in demographic
and socioeconomic characteristics of the Texas population as
they may affect lending needs and practices.
Following Dr. Murdock's testimony and response to members'
questions, the chairman called Dr. Ray Perryman, President of
the Perryman Group, to discuss the economic consequences of
inadequate bank credit in Texas.
Upon completion of Dr. Perryman's testimony, the chairman called
a panel to discuss credit availability issues; recent and
pending analyses; and studies relating to the subcommittee's
scope. The panelists were:
James Pledger, Commissioner, Texas Savings and Loan
Department,
Randall James, Commissioner, Texas Department of Banking,
Leslie Pettijohn, Commissioner, Office of Consumer Credit
Commissioner, and
James Deese, Deputy Commissioner, Texas Credit Union
Department.
Following the panelists' testimony and response to members'
questions, Chairman Shapleigh called for public testimony, The
witnesses testified in the order shown below:
Karen Neeley, Independent Bankers Association of Texas,
Austin, Texas,
Jose Rodriguez, El Paso County Attorney, El Paso County
Attorney's Office, El Paso,
Rob Schneider, Consumers Union, Austin, Texas, and
Reymundo Ocanas, Texas CDCs, Austin, Texas.
There being no further business, at 1:15 p.m. Senator Shapleigh
moved that the Committee stand recessed subject to the call of
the chairman. Without objection, it was so ordered.
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Senator Eliot Shapleigh, Chairman
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Barbara Henderson, Clerk