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.
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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
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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