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. __________________________________ Senator Jon Lindsay, Chair __________________________________ Tanya Tillman, Committee Clerk