MINUTES
SENATE COMMITTEE ON NOMINATIONS
Monday, March 3, 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, March 3, 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 Carona, Senator Hinojosa and Senator Jackson.
Senator Harris moved to adopt the minutes from the previous
meeting. There being no objections, the minutes were adopted.
Senator Ratliff introduced Mike Jones; Senator Lucio introduced
Joan Tavarez; Senator Madla introduced Vidal Gonzalez, and
Senator Wentworth introduced Suzie McClellan.
Senator Barrientos introduced Rebecca Klein and Julie Caruthers
Parsley. Senator Harris questioned the issue of unbundling, the
availability of wires to homes for AT&T, the status of
unbundling litigation and the PUC's past trial court history.
Klein explained that unbundling was regulated by federal law and
that Texas had gone beyond the federal law. She agreed that
there had been litigation and that there were cases against the
PUC pending but no rulings. She agreed to get Senator
Barrientos the status of various cases in writing. Senator
Harris questioned if there was an open case where SBC and
Verizon had provided lines to competitors and at a price less
than it costs for construction and upkeep because of unbundling
rules. She agreed there was an open case that had been open for
a year. Senator Harris questioned if she had talked to them and
had they cut back on their investment in Texas. She had talked
to them. Senator Harris questioned how Texas could have
economic growth when the phone companies are going to other
states.
Senator Barrientos asked Parsley about the PUC budget cuts,
(i.e. where the cuts came and if they had laid off employees
before or after the 7% request by the governor). Parsley said
that they had terminated 37 employees, 33 were FTE's and none
were terminated before the request. They also looked at other
ways to cut the budget before terminating those employees.
Barrientos requested a list of positions making $75,000 and
over. He asked how wholesale prices of electricity tripled in
one day. She had two reasons for this; the temperatures dropped
and the curtail of the gas supply. He questioned deregulation.
He also questioned Parsley about the breakdown of employees and
HUB's. He then question Klein on NARUC and its purpose. Her
response was that it is an umbrella organization of state
commissioners that interacts with the electric and telecom
industries, provides forums, and tracks congressional
intiatives. Barrientos questioned if she had ever lobbied the
FCC and about her travel schedule. He cautioned her on her
spending habits and to pay attention to 5.56 of the Government
Code.
Senator Harris questioned her about ECI telecom and her husbands
ownership in some of its competitors. He also asked if ERCOT
had ever traded on the public floor before. She explained ECI
and that they no longer owned anything with the competitors; she
also stated that ERCOT had not traded publicly before.
Senator Lindsay questioned the book value on stranded cost, the
amount of oversight and the replacement costs.
Senator Hinojosa asked if competition had to justify electric
increases. Klein answered that there was a statute and rule
telling the electric companies that they had to prove why they
were increasing electric rates and if they did not justify
increases, then it would be denied.
The Chairman read witness forms from Philip Goldman and L.
Lanford, supporting the nominees to the Public Utility
Commissioner.
There being no other questions the nominees was confirmed with 5
ayes and 0 nays
Suzi McClellan, with the Office of Public Utility Counsel, gave
her opening remarks. Senator Hinojosa questioned if McClellan
had access to PUC information. Senator Barrientos asked her who
her superior was. He also questioned wholesale prices and if
she had enough money in her budget. Senator Deuell questioned
whether she thought she should be part of the PUC or the
Attorney General's office or stay a separate agency. Senator
Lindsay questioned stranded costs on power plants. There being
no other questions, the nominee was adopted with 6 ayes and 0
nays.
The Department of Housing and Community Affairs was introduced.
Senator Carona introduced Elizabeth Anderson; Senator Barrientos
introduced Shadrick Bogany, and Senator Hinojosa introduced
Mayor Norbeto Salinas.
Senator Barrientos talked about the agency in general and asked
what each thought the agency's purpose was. They all agreed
that it was to serve those in need and to provide affordable
housing. Hinojosa suggested the board members come up with ways
to buy homes without petty fees, keeping it affordable. Senator
Lindsay was concerned with his district's apartment construction
which adds more children and less tax dollars to the district.
The Chairman asked the committee if there was any objection to
voting on the nominee C. Kent Conine, even though he did not
appear before the committee. Senator Barrientos said if he sent
a letter explaining his absence then he could be voted in; if
not, he would like for him to appear. The Chairman agreed.
There being no other questions, Elizabeth M. Anderson, Shadrick
Bogany, Vidal Gonzalez, Michael Edwin Jones, Norberto Salinas
were adopted with 5 ayes and 0 nays.
The Chairman introduced, Jack L. Davis, Clement Pete Moreno and
Joan C. Tavarez, the Manufactured Housing Board. Senator
Harris gave Jack Davis accolades regarding his integrity. The
chairman pulled Don Stouder and Cary P. Yates because of
absence. There being no objection a vote was taken for Davis,
Moreno and Tavarez, the nominees were confirmed with 6 ayes and
0 nays.
The Chairman introduced the Board of Protective Regulatory
Services, John Castle and Anne Crews, each gave their opening
statements. Senator Hinojosa suggested rigid training for new
employees. Senator Barrientos questioned their length of time
on the board and would they treat their agency the same way they
would treat TxDOT when it came to cutting budgets. They agreed
they would. Senator Hinojosa would like for them to submit how
they are going to propose the 12% cut in the agency. Senator
Harris went over the budget that Crews gave the Finance
Committee. There being no other questions, a vote was taken.
There being 3 ayes and 3 present not voting, the nominees were
held.
The Chairman introduced the nominees from the Texas Workers
Compensation Board. Before introductions began, Senator Lindsay
requested another vote for the Board of Protective and
Regulatory Services. There being 4 ayes and 3 present not
voting, the nominees were confirmed. Senator Harris requested
to introduce Richard Smith, and the Chairman agreed. Senator
Jackson introduced Eddie Wilkerson and Chairman Lindsay
introduced Mike Hachtman. Each gave their opening remarks.
Senator Barrientos requested that each send in writing what
state had the best and the worst treatment of injured workers.
There being no other questions, the nominees were confirmed with
a vote of 5 ayes and 0 nays.
The Chairman asked for a motion to confirm the Angelina and
Neches River Authority Board of Directors, Gulf Coast Waste
Disposal Authority, Lower Neches Valley Authority, North Texas
Tollway, Authority Board of Directors, Rio Grande Compact
Commission, Sabine River Authority, Sabine River Compact
Administration and the State Board of Examiners for
Speech-Language Pathology and Audiology. Senator Harris
motioned to confirm the nominees, Senator Barrientos 2nd the
nomination. There being no questions, all nominees were adopted
with a vote of 5 ayes and 0 nays.
There being no other business at 5:45pm, Chairman Lindsay
announced the committee would stand in recess subject to the
call of the chair. There being no objections, the committee
recessed.
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Senator Jon Lindsay, Chair
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Tanya Tillman, Committee Clerk