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