MINUTES 
                                           
                      SENATE COMMITTEE ON BUSINESS & COMMERCE 
                              Thursday, March 20, 2003 
                                     8:00 a.m. 
                      Betty King Committee Hearing Room, 2E.20 
                                           
                                       ***** 
                                           
         Pursuant to a notice posted in accordance with Senate Rule  
         11.18, a public hearing of the Senate Committee on Business &  
         Commerce was held on Thursday, March 20, 2003, in the Betty King  
         Committee Hearing Room, 2E.20, at Austin, Texas. 
          
                                       ***** 
                                           
         MEMBERS PRESENT:                        MEMBERS ABSENT: 
         Senator Troy Fraser, Chairman           None 
         Senator Kip Averitt, Vice Chairman 
         Senator Kenneth Armbrister 
         Senator Kim Brimer 
         Senator Craig Estes 
         Senator Mike Jackson 
         Senator Eddie Lucio, Jr. 
         Senator Leticia Van de Putte 
         Senator Tommy Williams 
                                           
                                       ***** 
                                           
         The Chairman called the meeting to order at 8:20 a.m.  There  
         being a quorum present, the following business was transacted:   
          
         At 8:22 a.m. Chairman Fraser advised that the committee would  
         recess for the Governor's Prayer Service and would reconvene  
         thereafter; there being no objection, it was so ordered. 
          
         At 9:25 a.m. the committee reconvened.  The Chairman laid out SB  
         14, pending in committee, and recognized the bill author,  
         Senator Jackson.  A proposed committee substitute had been laid  
         out and discussed at the previous hearing and members had been  
         requested to file amendments to the proposed committee  
         substitute on Wednesday, March 19.  The committee would vote on  
         the amendments at this hearing.   
          
         Senator Van de Putte sent up Committee Amendment 1. The Chairman  
         called Jose Montemayor, Commissioner, Texas Department of  
         Insurance, and Philip Presley, also representing Texas  
         Department of Insurance, to respond to members' questions  
         throughout the hearing.  Senator Van de Putte moved adoption of  
         Committee Amendment 1.  The motion failed by a record vote of 4  
         ayes, 5 nays, 0 present not voting, and 0 absent.   
          
         At 9:58 a.m. the Chairman moved that the committee stand  
         recessed until 45 minutes after adjournment of the Senate;  
  
         without objection, it was ordered. 
          
         At 1:10 p.m. the committee reconvened.  Senator Averitt sent up  
         Committee Amendment 2; the amendment was withdrawn. 
          
         Senator Averitt sent up Committee Amendment 3; the amendment was  
         withdrawn.  However, later Senator Averitt sent Committee  
         Amendment 3 back up and moved adoption.  The motion passed by a  
         record vote of 5 ayes, 3 nays, 0 present not voting, and 1  
         absent. 
          
         The Chairman advised that Senator Armbrister would send up  
         Committee Amendment 4 when he returned to the hearing. When  
         Senator Armbrister returned, he withdrew the amendment. 
          
         Senator Lucio sent up Committee Amendment 5 and moved adoption.   
         The motion failed by a record vote of 2 ayes, 6 nays, 0 present  
         not voting, and 1 absent. 
          
         Senator Averitt sent up Committee Amendment 6; the amendment was  
         withdrawn. 
          
         Senator Averitt sent up Committee Amendment 7 and moved  
         adoption; without objection, the amendment was adopted.   
          
         Senator Lucio sent up Committee Amendment 8 and moved adoption.   
         The motion failed by a record vote of 2 ayes, 7 nays, 0 present  
         not voting, and 0 absent.   
          
         Senator Averitt sent up Committee Amendment 9 and moved  
         adoption; without objection, the amendment was adopted.   
          
         Senator Averitt sent up Committee Amendment 10.  Senator Fraser  
         offered an amendment to Committee Amendment 10; Senator Jackson  
         moved adoption; without objection, the amendment and the  
         amendment to the amendment were adopted. 
          
         Senator Williams sent up Committee Amendment 11 and moved  
         adoption; without objection, the amendment was adopted. 
          
         There was no action taken on Committee Amendment 12. 
          
         Senator Williams sent up Committee Amendment 13 and moved  
         adoption; without objection, the amendment was adopted.   
          
         Senator Armbrister sent up Committee Amendment 14; the amendment  
         was withdrawn. 
          
         Senator Averitt sent up Committee Amendment 15; the amendment  
         was withdrawn. 
          
         Committee Amendment 15B by Senator Fraser was withdrawn. 
          
         Senator Van de Putte sent up Committee Amendment 16; the  
  
         amendment was withdrawn. 
          
         Senator Armbrister sent up a replacement to Committee Amendment  
         16A and moved adoption; without objection the amendment as  
         replaced was adopted. 
          
         There was no action taken on Committee Amendment 17. 
          
         Senator Van de Putte sent up Committee Amendment 18 and moved  
         adoption.  The motion failed by a record vote of 3 ayes, 6 nays,  
         0 present not voting, and 0 absent.  
          
         Senator Van de Putte sent up Committee Amendment 19; the  
         amendment was withdrawn. 
          
         Senator Williams sent up Committee Amendment 20 and moved  
         adoption; without objection, the amendment was adopted.    
          
         Senator Brimer sent up Committee Amendment 21 and moved  
         adoption; without objection, the amendment was adopted.    
          
         Senator Averitt assumed the chair.  Senator Fraser sent up  
         Committee Amendment 22; the Chairman moved adoption.  Without  
         objection, the amendment was adopted. 
          
         Senator Fraser resumed the chair.  Senator Averitt sent up  
         Committee Amendment 23; the amendment as withdrawn. 
          
         Senator Van de Putte sent up Committee Amendment 24 and moved  
         adoption.  The motion failed by a record vote of 3 ayes, 5 nays,  
         0 present not voting, and 1 absent.   
          
         Senator Averitt sent up Committee Amendment 25; Senator Van de  
         Putte moved adoption; without objection, the amendment was  
         adopted.   
          
         Senator Averitt sent up Committee Amendment 26; the amendment  
         was withdrawn. 
          
         Senator Averitt sent up Committee Amendment 27; the amendment  
         was withdrawn. 
          
         Senator Brimer sent up Committee Amendment 28; the amendment was  
         withdrawn. 
          
         Senator Lucio sent up Committee Amendment 29 and moved adoption.   
         The motion failed by a record vote of 2 ayes, 5 nays, 0 present  
         not voting, and 2 absent.   
          
         There was no action taken on Committee Amendment 30. 
          
         Senator Averitt sent up Committee Amendment 31; Senator Jackson  
         sent up an amendment to Committee Amendment 31 and moved  
         adoption; without objection, the amendment and amendment to the  
  
                                    SENATE COMMITTEE ON BUSINESS & COMMERCE 
                                                                    Minutes 
                                                   Thursday, March 20, 2003 
                                                                      page   4 
                                                                            
         amendment were adopted. 
          
         Senator Williams sent up Committee Amendment 32 and an amendment  
         to the amendment; the amendment and the amendment to the  
         amendment were withdrawn. 
          
         Senator Averitt sent up Committee Amendment 33 and moved  
         adoption; without objection, the amendment was adopted.   
          
         Senator Fraser sent up Committee Amendment 34 and moved  
         adoption; without objection, the amendment was adopted.   
          
         Committee Amendments 35 and 36 were withdrawn. 
          
         Senator Averitt sent up Committee Amendment 37 and moved  
         adoption; without objection, the amendment was adopted.   
          
         Senator Fraser sent up Committee Amendment 37A and moved  
         adoption; without objection, the amendment was adopted.   
          
         Senator Brimer sent up Committee Amendment 38 and moved  
         adoption; without objection, the amendment was adopted.   
          
         Senator Fraser sent up Committee Amendment 39 and moved  
         adoption; without objection, the amendment was adopted.   
          
         Committee Amendment 40 was withdrawn. 
          
         Senator Armbrister sent up a replacement to Committee Amendment  
         40A and moved adoption; without objection, the replacement for  
         the amendment was adopted. 
          
         Senator Averitt sent up Committee Amendment 41 and moved  
         adoption; without objection, the amendment was adopted.   
          
         Senator Fraser sent up Committee Amendment 42 and moved  
         adoption; without objection, the amendment was adopted.   
          
         Senator Van de Putte sent up Committee Amendment 43 and moved  
         adoption; without objection, the amendment was adopted.   
          
         Senator Van de Putte sent up Committee Amendment 44 and moved  
         adoption.  The motion failed by a record vote of 2 ayes, 6 nays,  
         0 present not voting, and 1 absent.   
          
         Senator Jackson requested unanimous consent to incorporate the  
         adopted amendments into the proposed committee substitute;  
         without objection, it was so ordered.  Senator Jackson then  
         moved that the new committee substitute be adopted; without  
         objection, it was so ordered.  Senator Jackson moved that SB 14  
         do not pass but that CSSB 14 be reported back to the Senate with  
         the recommendation that it do pass and be printed.  The motion  
         carried with a record vote of 6 ayes, 2 nays, 1 present not  
         voting, and 0 absent.   
  
                                    SENATE COMMITTEE ON BUSINESS & COMMERCE 
                                                                    Minutes 
                                                   Thursday, March 20, 2003 
                                                                      page   5 
                                                                            
         Chairman Fraser moved that the bills shown below be laid on the  
         table subject to call; without objection, it was so ordered. 
          
              SB 91 
              SB 99 
              SB 109           SB 130 
              SB 131 
              SB 400 
          
         There being no further business, at 6:30 p.m. the Chairman moved  
         that the Committee stand recessed subject to the call of the  
         chairman.  Without objection, it was so ordered.   
          
         ____________________________ 
         Senator Troy Fraser, Chairman 
          
         ____________________________ 
          Barbara Henderson, Clerk