MINUTES
SENATE COMMITTEE ON NOMINATIONS
Monday, February 24, 2003
3:00 p.m. or upon adjournment
Capitol Extension, Room E1.016
*****
Pursuant to a notice posted in accordance with Senate Rule
11.18, a public hearing of the Senate Committee on Nominations
was held on Monday, February 24, 2003, in the Capitol Extension,
Room E1.016, at Austin, Texas.
*****
MEMBERS PRESENT: MEMBERS ABSENT:
Senator Jon Lindsay None
Senator Bob Deuell
Senator Gonzalo Barrientos
Senator John Carona
Senator Chris Harris
Senator Juan Hinojosa
Senator Mike Jackson
*****
The chair called the meeting to order at 3:00 p.m. There being
a quorum present, the following business was transacted:
The following members arrived after the roll was called:
Senator Deuell
Senator Hinojosa moved to adopt the minutes from the previous
meeting and Senator Jackson 2nd the adoption. There being no
objections the minutes were adopted.
The Chairman introduced Senator Harris for an introduction of
Gwyn Shea. She gave her opening remarks and welcomed any
questions.
Senator Hinojosa asked her to recap her budget, she replied with
a breakdown of her 2003 budget and with the gender and ethnic
breakdown of the FTE's.
Senator Jackson gave a verbal endorsement.
Senator Lindsay questioned the percentage of voters who cast
ballots on computer type machines and who funds the machines.
Shea responded with the figures of: 254 counties had computers,
12 counties had punch/lever and 100 had paper. The machines
were certified by the State of Texas, and the County
Commissioners generate a list of the machines that can be
purchased. There being no other questions of the committee the
motion was passed by 7 ayes and 0 nays.
Senator Wentworth introduced Jose Montemayor; Senator Carona
gave favorable remarks. Montemayor gave his opening statement.
Senator Barrientos gave his remarks to Montemayor regarding
rising homeowners insurance. Barrientos wanted to know how
Montemayor handled this situation and how he felt about doing
what he did because some said that he made it easier on
businesses. In addition, Barrientos asked what Montemayor did to
lower rates. Montemayor cited the serious disruption in 2001 of
cost premiums because of natural disasters as reason for the
rise in rates. He also stated the need for shock absorption
rates. To lower the cost of insurance, he did an examination,
profile enforcement and looked at competition. He had no direct
rate authority over 95% and no statutory authority to lower
rates.
Barrientos questioned the nature of the insurance settlement and
then discussed what the settlement money was for. He requested
it in writing, and Montemayor agreed to get the information.
Barrientos also questioned who negotiated the settlement and
requested specifics. Montemayor said there were two people from
the A.G.'s office, two people from the Insurance Department and
two lawyers from Fulbright and Jarwoski (representing Farmers
Insurance Exchange and Fire Exchange). Payment terms were also
discussed.
Montemayor discussed that 100% of the money went back to the
consumers, some in a lump sum and others in monthly payments.
He also responded to Barrientos' question on why it took one
year to get back to a specific complaint.
Barrientos asked if Texas had the highest homeowners rates and
why. Montemayor agreed that Texas had high insurance rates and
that it was because of the weather catastrophies.
Senator Harris questioned affordable insurance for nursing homes
and Montemayor replied with statistics. Senator Harris also
asked if his job would be made less difficult if the Legislature
gave him more authority and Montemayor's reply was yes.
Senator Harris gave verbal approval of his tenure.
Senator Hinojosa also asked what Montemayor needed in order to
have more power and he said he needed more visibility of rates
and the ability to challenge rates. The Senator also asked
about high risk rates and wanted him to close loop holes. He
agreed.
Senator Lindsay questioned medical malpractice and how the
numbers have increased Montemayor agreed to issue a report to
Senator Lindsay.
Senator Hinojosa discussed a class action lawsuit in his
district.
Senator Barrientos discussed the Farmers Insurance court order
and requested that information in writing.
There being no other questions the Chairman requested that this
nomination be held temporarily.
Texas Commission on Environmental Quality nominee, Kathleen
White, was introduced by Senator Madla. She gave her opening
statement and welcomed any questions.
Senator Barrientos discussed the fees for pollutants and how
they have gone up; White was not aware of the details of the
program.
Senator Hinojosa gave an example of a chemical plant response in
his district and offered her some friendly advice about how her
commission needed to relay information to people faster, through
better communication.
Senator Jackson confirms that the TCEQ is the second largest
Environmental Commission behind the EPA. He was curious if
White thought it would be difficult to police the industry as it
got larger, and she agreed, giving him fee statistics.
There being no other questions, the nominee was confirmed with 7
ayes and 0 nays.
Senator Carona introduced Geraldine "Tincy" Miller; she gave her
opening remarks.
Senator Hinojosa questioned the allegations of mismanagement of
the Board, and she replied that the permanent school fund was
the best in the state and top 20% in the United States.
Irrespective to personalties, they had the best performing funds
and that she had no factual evidence of impropriety with any
members. Senator Hinojosa stated that there were three separate
entities that found misappropriation of funds and he asked what
measure had been taken to correct it; she replied that they had
investment advisors, and they had passed an ethics policy.
Senator Hinojosa questioned her campaign endorsements and
politics. She began to explain her opposition to a specific
candidate and her endorsement of another.
Senator Barrientos asked her about some allegations that had
been printed in the Austin American-Statesman about mismanaged
funds, the rejecting of honor science texts, her husbands
membership on a board, and moral issues. She replied that she
had nothing to do with the mismanaged funds, did not vote on the
science text, her husband did indeed sit on the board. He also
questioned what she thought of bilingual education; her reply
was that it was great, and it appears that the program is well
funded but she did not know for sure. He also questioned her
opinion on Robinhood.
Miller then explained why she is on the Board and questioned the
1.50 cap.
Senator Lindsay read two letters of support from Jack Campbell
and Kathy Ward.
Barrientos requested to hold the nominee for one week and
Senator Lindsay declined to grant the request.
There being no other questions, a vote was taken, there being 5
ayes, 1 nay and 1 present not voting, the nominee was confirmed.
Chairman Lindsay introduced Patrick Cordero, who gave his
opening remarks. Senator Barrientos asked if he thought the TIF
should be extended, and asked where the funds where spent. He
replied that 48% was spent on hardware.
Senator Deuell asked if he was surprised at the entities
receiving TIF Funds and he said no. Senator Jackson asked if he
had served at any of the meetings taking place, he had not.
There being no other questions a vote was taken, there being 5
ayes and 0 nays, the nominee was confirmed.
Senator Janek introduced Macedonio Villarreal with the Texas
Dept of Economic Development. He gave his opening remarks and
then Hector Delgado and Thomas Whaley did the same.
After brief questioning, the nominees were voted on, with 6 ayes
and 0 nays, the nominees were confirmed.
The Chairman asked for a motion to confirm the State Committee
of Examiners in the Fitting and Dispensing of Hearing
Instruments, Board of Lease of Texas Parks and Wildlife Lands,
Texas Mutual Insurance Company Board, Texas State Board of
Plumbing Examiners, Polygraph Examiners Board, Real Estate
Research Advisory Committee, Office of State-Federal Relations,
Commission on Uniform State Laws, and State Board of Veterinary
Medical Examiners. There being no questions, all nominees were
adopted with 5 ayes and 0 nays.
There being no other business at 6:09, Chairman Lindsay
announced the committee would stand in recess subject to the
call of the chair. There being no objections, the committee
recessed.
______________________________________
Senator Jon Lindsay, Chair
______________________________________
Tanya Tillman, Committee Clerk