MINUTES SENATE COMMITTEE ON BUSINESS & COMMERCE Monday, May 3, 2004 10:00 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 Monday, May 3, 2004, in the Betty King Committee Hearing Room, 2E.20, at Austin, Texas. ***** MEMBERS PRESENT: MEMBERS ABSENT: Senator Troy Fraser, Chairman Senator Kenneth Armbrister Senator Kip Averitt, Vice-Chairman Senator John Carona Senator Kim Brimer Senator Craig Estes Senator Eddie Lucio, Jr. Senator Mike Jackson Senator Leticia Van de Putte ***** The Chairman called the meeting to order at 10:05 a.m. There being a quorum present, the following business was transacted: Chairman Fraser made brief opening remarks and advised that the Committee would be discussing Interim Charge #2. The Interim Charge instructs the Committee to study the current structure of Texas' usury laws in order to determine how they are affected by federal law and how state law impacts new economic development and job production in the State. This Charge also instructs the Committee to complete a thorough assessment of the credit counseling and debt management industry, including recommendations for improving services. The Chairman advised that the Committee hearing would be structured to address the two major issues within the Charge separately. The first issue under consideration would be usury, and the second issue would be credit counseling and debt management. Chairman Fraser then called Leslie Pettijohn, Consumer Credit Commissioner, to present her testimony on the usury issue; Commissioner Pettijohn would be called later for testimony on the credit counseling issue. SENATE COMMITTEE ON BUSINESS AND COMMERCE Minutes Monday, May 3, 2004 page 2 Commissioner Pettijohn testified on Texas' credit laws, commercial usury and consumer loans. Following the Commissioner's testimony and response to members' questions, the Chairman called Everette Jobe, General Counsel of the Texas Department of Banking, to discuss the impact of Texas' usury laws on commercial lending. Upon completion of Mr. Jobe's testimony and response to members' inquiries, Chairman Fraser called for public testimony on the usury issue. Witnesses testifying and responding to members' questions are listed in the order of their appearance: Val Perkins, Texas Business Law Foundation; Bill Stinson, Texas Association of Realtors; Karen Neeley, Independent Bankers Association of Texas; and, John Heasley, Texas Bankers Association. Following Mr. Heasley's testimony, Chairman Fraser called Commissioner Pettijohn to present her testimony on the consumer credit counseling and debt management issue. On completion of Commissioner Pettijohn's testimony, the Chairman called for public testimony. The following witnesses testified: Marianne Gray, Consumer Credit Counseling Service of Greater Fort Worth, and Lucinda Rocha, Consumer Credit Counseling of Greater San Antonio. Gail Cunningham, Consumer Credit Counseling Service of Wichita Falls, registered for the issue but did not wish to testify. Chairman Fraser then closed public testimony, and thanked everyone for their attendance and participation. There being no further business, at 12:42 p.m. Senator Fraser 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