MINUTES SENATE COMMITTEE ON BUSINESS & COMMERCE Wednesday, March 24, 2004 9:30 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 Wednesday, March 24, 2004, in the Betty King Committee Hearing Room, 2E.20, at Austin, Texas. ***** MEMBERS PRESENT: MEMBERS ABSENT: Senator Troy Fraser Senator Kenneth Armbrister Senator Kip Averitt Senator Mike Jackson Senator Kim Brimer Senator Leticia Van de Putte Senator Craig Estes Senator Eddie Lucio, Jr. Senator Tommy Williams ***** Chairman Fraser called the meeting to order at 9:36 a.m. There being a quorum present, the following business was transacted: Chairman Fraser welcomed members and others present to the first interim meeting of the Business and Commerce Committee. The Chairman advised that copies of the Committee Rules, as adopted at the beginning of the 78th legislative session, had been distributed to the members for their review prior to the meeting. The Chairman proposed that the Committee continue to operate under the same rules during the interim unless there was objection. Hearing no objection, it was so ordered. The Chairman advised that, as the members are aware, the Committee has a number of interim charges to cover during the interim. At this hearing, the Committee would discuss and hear both invited and public testimony on interim charge #1, relating to the Texas unemployment compensation insurance program. Chairman Fraser called the first invited witness, Chair Diane Rath, Texas Workforce Commission, Commissioner Representing the Public. The Chairman also called Ron Lehman, Texas Workforce Commission, Commissioner Representing Employers. Chair Rath presented an overview of the status of the Texas unemployment insurance program. Commissioner Lehman discussed overpayments, due particularly to fraud and abuse, and the actions that the Texas Workforce Commission is taking to remedy the situation. Discussion and questions followed regarding various issues within the unemployment insurance program. Upon completion of testimony and response to members' questions by Chair Rath and Commissioner Lehman, Chairman Fraser called Bill Hammond, President of Texas Association of Business. Mr. Hammond suggested a few changes that might be made to improve efficiency at the agency regarding unemployment insurance. During Mr. Hammond's testimony, Chairman Fraser called Tommy Simmons, counsel for the Texas Association of Business, to respond to members' questions. Chairman Fraser then called the final invited witness, Rick Levy, representing the Texas AFL-CIO. Mr. Levy testified that while there are cases of fraud by unemployed workers, there are employers that are skirting their responsibilities through loopholes and fraudulent activities as well. Mr. Levy then presented his testimony and responded to members' questions. Following Mr. Levy's testimony, the Chairman called for public testimony. There being no public witnesses wishing to testify, Chairman Fraser moved that public testimony be closed; without objection, it was so ordered. There being no further business, at 11:45 a.m. Senator Averitt moved that the Committee stand recessed subject to the call of the Chairman. Without objection, it was so ordered. _________________________ Senator Troy Fraser, Chairman _________________________ Tatum Baker, Clerk