MINUTES SENATE COMMITTEE ON FINANCE Subcommittee on Interim Subcommittee on Taxes Tuesday, February 26, 2002 1:30 p.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 Tuesday, February 26, 2002, in the Capitol Extension, Room E1.036, at Austin, Texas. ***** MEMBERS PRESENT: MEMBERS ABSENT: Senator Rodney Ellis Senator Jon Lindsay Senator Chris Harris Senator Eddie Lucio, Jr. Senator Gonzalo Barrientos Senator John Whitmire Senator Robert Duncan Senator Troy Fraser Senator Mike Jackson Senator Steve Ogden Senator Todd Staples Senator Carlos Truan Senator Judith Zaffirini ***** The chair called the meeting to order at 1:33 p.m. There being a quorum present, the following business was transacted: The Chair made opening remarks and proceeded with the hearing as follows: The committee considered invited testimony from the following: James Le Bas, with the Comptroller's Office, presented requested information from the December 5, 2001 hearing packet entitled Texas Taxes. Mr. Le Bas remained present for the duration of the hearing to answer questions that surfaced from each agency; Steve Stephens, with the Texas Strategic Economic Planning Commission, gave an overview of the Commission's five goals for the plan with specific strategies and recommendations for each; Bill Allaway and Dale Craymer, representing the Texas Taxpayers and Research Association, gave a brief overview on taxing Texas businesses; John Hurd and Edmund Segner, representing Texas Oil and Gas Association, answered questions and gave a brief overview on the economic impact of the Oil and Gas industry; Shawn McKenzie, representing Southwestern Bell Communications, gave an overview on telecommunication taxes in Texas verses other states. He also answered questions and touched on the telecommunication industry taxes versus general business in Texas; Cindy Gonzales, representing Verizon, answered questions from the committee on telecommunication taxes; Paul Stevens, representing Southwestern Bell Communications, answered questions on state and local taxes regarding telecommunications; Ira Lipstet, representing Texas Society of CPAs, answered questions from the committee; Dan Hagan, representing American Airlines, answered questions about airline taxes; Nene Foxhall, representing Continental Airlines, answered questions about airline taxes; Ron Ricks, representing Southwest Airlines, answered questions about airline taxes; Jim Woodrick, representing Texas Chemical Association, answered questions from the committee and provided written testimony; Greg Cardwell, representing E.I. Dupont, provided the committee with information on state and local taxes and how they compare to other states where Dupont operates; Ron Dipprey, representing Dow Chemical Company, gave a brief presentation and answered questions from the committee; Robert Hogue, Patrick Carter and Judson Somerville, representing Texas Medical Association, provided a presentation on healthcare and answered questions; Will Davis, representing Texas Association of Life & Health Insurance, answered questions; Forrest Roan, representing American Insurance Association, provided a presentation and answered questions; Cindy Ohlenforst answered questions from the committee; Geoff Wurzel, representing National Semiconductor/AeA, and Pat Motola, representing AeA/High Tech Industry, gave a presentation and answered questions from the committee; Charlie Smith, representing Reliant Energy, briefed the committee and answered questions; Marc Moseley, representing AECT Tax Committee, briefed the committee and answered questions; Eric Craven, Texas Electric Cooperatives, briefed the committee and answered questions; The committee considered public testimony from the following: Dick Lavine, representing the Center for Public Policy Priorities; Barbara Hankins, representing League of Women Voters of Texas; Cyrus Reed, representing Texas Center for Policy Studies; Tom Kowalski, representing the Texas Healthcare & Bioscience Institute. There being no further business, at 6:55 p.m. Senator Ellis moved that the Committee stand recessed subject to the call of the chair. Without objection, it was so ordered. ______________________ Senator Rodney Ellis, Chair ______________________ Amber Martin, Clerk