MINUTES SENATE COMMITTEE ON FINANCE Monday, February 26, 2001 8:00 a.m. Capitol Extension, Room E1.036 ***** Pursuant to a notice posted in accordance with Senate Rule 11.18, a public hearing of the Senate Committee on Finance was held on Monday, February 26, 2001, in the Capitol Extension, Room E1.036, at Austin, Texas. ***** MEMBERS PRESENT: MEMBERS ABSENT: Senator Rodney Ellis None Senator Chris Harris Senator Gonzalo Barrientos Senator Robert Duncan Senator Troy Fraser Senator Tom Haywood Senator Mike Jackson Senator Jon Lindsay Senator Eddie Lucio, Jr. Senator Steve Ogden Senator Carlos Truan Senator John Whitmire Senator Judith Zaffirini ***** The chair called the meeting to order at 8:05 a.m. There being a quorum present, the following business was transacted: The Committee began its markup session on the General Appropriations Bill (Senate Bill 1). Senator Ellis recognized Senator Jackson, Chairman of the work group for Regulatory (Article VIII), to present the work group recommendations to the full committee on the following agencies: REGULATORY (ARTICLE VIII) Board of Public Accountancy State Office of Administrative Hearings Board of Architectural Examiners Board of Barber Examiners Board of Chiropractic Examiners Cosmetology Commission Credit Union Department Texas State Board of Dental Examiners Board of Professional Engineers Finance Commission of Texas Department of Banking Office of Consumer Credit Commissioner Savings and Loan Department Funeral Services Commission Department of Insurance Office of Public Insurance Counsel Board of Professional Land Surveying Department of Licensing and Regulation Board of Medical Examiners Board of Nurse Examiners Board of Vocational Nurse Examiners Optometry Board Structural Pest Control Board Board of Pharmacy Executive Council of Physical Therapy and Occupational Therapy Examiners Board of Plumbing Examiners Board of Podiatric Medical Examiners Board of Examiners of Psychologists Racing Commission Securities Board Board of Tax Professional Examiners Board of Veterinary Medical Examiners Health Professions Council The Committee adopted specific items included in the Legislative Budget Board (LBB) markup documents for each agency. Final action will be taken on adopted items at the end of the markup process. Action taken on items not included in the LBB markup documents included the following: State Office of Administrative Hearings: Senator Jackson proposed two Rider 1 - Direct Funding for Agencies. Instead of interagency contracts use direct GR funding. Rider 2 -Administrative Law Judges (FTE Explanation: Rider is for an increase of 1 FTE in the cap; However, funding is for a total of 5 FTE's due to SOAs unfunded FTEs currently allowed. (Contingent upon Rep. Ray Allen's DWI Bill). Without objection, both riders were adopted. Board of Architectural Examiners: Senator Jackson proposed one rider. Rider 1 - Directs funding for an FTE to be used jointly by the Board of Architectural Examiners and the Board of Professional Engineers to develop a new licensing system for both the agencies. Without objection, rider was adopted. State Board of Dental Examiners: Authority and funding for an additional Investigator III position for enforcement. (1FTE). Without objection, work group recommendation was adopted. Finance Commission of Texas: Senator Jackson proposed one rider. Rider 1 - Adopt Sunset recommendation and eliminate all reference to the Finance Commission as an independent agency. Duties will be divided between Department of Banking, Office of Consumer Credit Commissioner, Savings and Loan Department. Without objection, rider was adopted. Savings and Loan Department: 3 FTEs (3 Mortgage Broker Investigators). Without objection, work group recommendation was adopted. Texas Department of Insurance: Elimination of Rider #8, Maintenance Tax on Gross Premiums. Without objection, work group recommendation was adopted. Board of Professional Land Surveying:. Increase of General Revenue Funding for (1 FTE) Investigator III & purchase of Scantron Optical Reader for grading of exams. Without objection, work group recommendations were adopted. Department of Licensing and Regulation: Senator Jackson proposed one rider. Rider 1 - Restore of lapsed appropriations authority. 1 FTE (Boiler Inspection Specialist) Without objection, Rider #1 and work group recommendation were adopted. Board of Medical Examiners: On hold Board of Vocational Nurse Examiners: Increase funding for migration of data to computer system. Without objection, work group recommendation was adopted. Board of Pharmacy: Funding for the registration of Pharmacy Technicians, as amended. Without objection, work group recommendation, as amended, was adopted. Board of Plumbing Examiners: 2 FTEs (Field representatives/Investigators). Without objection, work group recommendation was adopted. Board of Podiatric Medical Examiners: Contracted medical reviewers for complaint files and expert testimony at (SOAH). Without objection, work group recommendation was adopted. Board of Examiners of Psychologists: Funding for licensing system (Northrup Grumman). Without objection, work group recommendation was adopted. Securities Board: Funding for San Antonio Enforcement Office & reduce inspection cycle from 8.5 years to 7 years. Without objection, work group recommendations were adopted. Health Professions Council: Senator Jackson proposed one rider. Rider 1 - Increase funding for optical imaging system maintenance and upgrades, copy machine service contracts, and for contracted network system support services. Without objection, rider was adopted. John O'Brien, of the LBB, requested authority to make technical corrections in accordance with budgetary and FTE decisions made by the Committee. Without objection, it was so ordered. Senator Fraser, Chairman of the work group on Workers' Compensation Issues, was recognized to present the work group recommendations to the full Committee on the following: Workers' Compensation Issues State Office of Risk Management Workers' Compensation Commission Research and Oversight Council on Worker's Compensation The Committee adopted specific items included in the Legislative Budget Board (LBB) markup documents for each agency. Final action will be taken on adopted items at the end of the markup process. Action taken on items not included in the LBB markup documents included the following: State Office of Risk Management: Senator Fraser proposed one rider. Rider 1 - to authorize SORM to use specified percentage of claims fund for certain administrative functions that contain costs and detect fraud, etc. (This rider could decrease the overall general revenue needed to fund SORM's administrative costs). Exceptional items; implementation of toll-free call line, Claims Processing caseload reduction (4 FTEs), increase travel cap and fund e-government initiative. Without objection, Rider 1 and exceptional items were adopted. Workers Compensation Commission: Exceptional item; funding for (4 - 5) additional FTEs for the Ombudsmen Program. Without objection, the exceptional items were adopted. Research & Oversight Council on Worker's Compensation: Exceptional items; Funding for an additional Researcher V and UB authority. Without objection, the exceptional items were adopted. Witnesses called on to answer question of the Committee are shown on the attached list. The chair laid out SB519 and recognized the author, Senator Shapleigh, to explain the bill. Senator Lucio, Jr. sent up Committee Amendment 1 and moved adoption; without objection, the amendment was adopted. Senator Ellis moved that SB519, as amended, be reported back to the Senate with the recommendation that it do pass and be printed. The motion carried with a record vote of 10 ayes, 0 nay, 0 present not voting, and 3 absent. Senator Truan moved that the bill be recommended for placement on the Local & Uncontested Calendar; without objection, it was so ordered. The chair laid out SB174 and recognized the author, Senator Duncan, to explain the bill. Witnesses testifying and registering on the bill are shown on the attached list. The chair moved that the public testimony be closed; without objection, it was so ordered. Senator Ellis moved that SB174 be left pending; without objection, it was so ordered. The chair laid out SJR6 and recognized the author, Senator Duncan, to explain the bill. Witnesses testifying and registering on the bill are shown on the attached list. The chair moved that the public testimony be closed; without objection, it was so ordered. Senator Ellis moved that SJR6 be left pending; without objection, it was so ordered. Senator Haywood, Chairman of the work group on E-Texas Recommendations, was recognized to present work group recommendations to the full Committee. Recommendations are sorted by E-Texas topic into three tiers: Tier 1: includes recommendations that are projected to generate short or long-term savings to the state. Tier 2: recommendations may incur some cost, but are long-term investments in Texas Government's efficiency and savings generators. Tier 3: are recommendations with cost or not filed for legislation. (Report attached) Senator Haywood moved adoption of the report (the report is not an endorsement of any of the bills, it is only clarification of the bills). Without objection, the E-Texas report was adopted. There being no further business, Senator Lucio, Jr. moved that the Committee stand recessed until 8:00 am, Tuesday, February 27, 2001. Without objection, it was so ordered. _____________________________ Senator Rodney Ellis, Chair _____________________________ Myra J. Schmitt, Clerk