MINUTES 
                                           
                 SENATE COMMITTEE ON COMMITTEE OF THE WHOLE SENATE 
                                Friday, May 2, 2003 
                                       9 a.m. 
                                   Senate Chamber 
                                           
                                       ***** 
         Pursuant to a notice posted in accordance with Senate Rule  
         11.18, a public hearing of the Senate Committee on Committee of  
         the Whole Senate was held on Friday, May 2, 2003, in the Senate  
         Chamber at Austin, Texas. 
          
                                       ***** 
                                           
         MEMBERS PRESENT:                        MEMBERS ABSENT: 
         Senator Kenneth Armbrister              Senator John Carona 
         Senator Kip Averitt                     Senator Leticia Van de  
                                                 Putte 
         Senator Gonzalo Barrientos 
         Senator Teel Bivins 
         Senator Kim Brimer 
         Senator Bob Deuell 
         Senator Robert Duncan 
         Senator Rodney Ellis 
         Senator Craig Estes 
         Senator Troy Fraser 
         Senator Mario Gallegos, Jr. 
         Senator Chris Harris 
         Senator Juan Hinojosa 
         Senator Mike Jackson 
         Senator Kyle Janek 
         Senator Jon Lindsay 
         Senator Eddie Lucio, Jr. 
         Senator Frank Madla 
         Senator Jane Nelson 
         Senator Steve Ogden 
         Senator Bill Ratliff 
         Senator Florence Shapiro 
         Senator Eliot Shapleigh 
         Senator Todd Staples 
         Senator Jeff Wentworth 
         Senator Royce West 
         Senator John Whitmire 
         Senator Tommy Williams 
         Senator Judith Zaffirini 
         Lieutenant Governor David Dewhurst   
                                       ***** 
         Dean Whitmire called the meeting to order at 9:40 a.m.  There  
         being a quorum present, the following business was transacted. 
          
         Dean Whitmire laid out the following bills before the committee: 
          
         SB 2 by Shapiro, relating to public school finance, a state ad  
         valorem tax, state general sales and use taxes, state taxes in  
  
         the sale or use of a motor vehicle, and property tax relief for  
         residential tenants; 
          
         SJR 1 by Shapiro, proposing a constitutional amendment to  
         provide financial support for public education by creating the  
         Texas education fund, authorizing a state property tax,  
         increasing the state general sales and use tax rate, expanding  
         the general sales and use tax base to include certain services,  
         increasing the state motor vehicle sales and use tax rate,  
         abolishing the school district property tax for maintenance and  
         operations purposes, and authorizing a school district property  
         tax for the purpose of educational enrichment; and, 
          
         HB 5 by Representative Grusendorf/Senator Shapiro, relating to  
         public school finance. 
          
         Dean Whitmire recognized Senator Shapiro to explain the three  
         bills. 
          
         President Pro Tempore Lucio moved to limit testimony to three  
         minutes per person.  There being no objection, the motion was  
         adopted. 
          
         Dean Whitmire called upon the following panel to provide invited  
         testimony.  Panel one included the following persons: 
          
              Wayne Pierce, Equity Center 
              Scott McCown, Center for Public Policy Priorities 
              Lynn Moak, Moak, Casey & Associates, LLP 
              David Thompson, Bracewell & Patterson, LLP 
              Bill Allaway, Texas Taxpayers and Research Association 
          
         Dean Whitmire called upon the following panel to provide invited  
         testimony.  Panel two included the following persons: 
          
              Catherine Clark, Texas Association of School Boards 
              Bill Grusendorf, Texas Association of Rural Schools 
              Ken McCraw, Texas Association of Mid-Size Schools 
              Leonard Merrill, Texas Association of School Administrators 
              Martin Pena, South Texas Association of Schools 
              Keith Sockwell, Northwest ISD, representing Ch. 41 school  
         districts 
          
         Senator Wentworth assumed presiding duties. 
         Dean Whitmire resumed presiding duties. 
          
         Dean Whitmire called upon the following panel to provide invited  
         testimony.  Panel three included the following persons: 
          
              Eric Hartman, Texas Federation of Teachers 
              Brock Gregg, Association of Texas Professional Educators 
              Lonnie Hollingsworth, Texas Classroom Teachers Association 
              Jack Kelly, Texas State Teachers Association 
          
         Dean Whitmire opened public testimony. See attached witness list  
  
         for persons who provided oral and written testimony regarding SB  
         2, SJR 1 and HB 5. 
          
         There being no other persons registered or responding to Dean  
         Whitmire's call for public testimony regarding SB 2, SJR 1 or HB  
         5, Dean Whitmire closed public testimony. 
          
         Senator Shapiro sent up a committee substitute for HB 5 and  
         explained the differences between the committee substitute and  
         the bill as filed.  Senator Shapiro moved the adoption of the  
         committee substitute for HB 5.  There being no objection, the  
         committee substitute for HB 5 was adopted. 
          
         Senator Shapiro sent up a committee substitute for SJR 1 and  
         explained the differences between the committee substitute and  
         the senate joint resolution as filed.  Senator Shapiro moved the  
         adoption of the committee substitute for SJR 1.  There being no  
         objection, the committee substitute for SJR 1 was adopted. 
          
         Senator Shapiro sent up a committee substitute for SB 2 and  
         explained the differences between the committee substitute and  
         the bill as filed.  Senator Shapiro moved the adoption of the  
         committee substitute for SB 2.  There being no objection, the  
         committee substitute for SB 2 was adopted. 
          
         Dean Whitmire recognized Lieutenant Governor David Dewhurst for  
         remarks. 
          
         Senator Shapiro moved that HB 5 be reported to the Senate with  
         the recommendation that it do not pass, but that the committee  
         substitute adopted in lieu thereof do pass and be printed.  The  
         motion prevailed by a record vote of 30 ayes, 0 nays, 2 absent  
         and 0 present not voting. 
          
         Senator Shapiro moved that SB 2 be reported to the Senate with  
         the recommendation that it do not pass, but that the committee  
         substitute adopted in lieu thereof do pass and be printed.  The  
         motion prevailed by a record vote of 30 ayes, 0 nays, 2 absent  
         and 0 present not voting. 
          
          Senator Shapiro moved that SJR 1 be reported to the Senate with  
         the recommendation that it do not pass, but that the committee  
         substitute adopted in lieu thereof do pass and be printed.  The  
         motion prevailed by a record vote of 30 ayes, 0 nays, 2 absent  
         and 0 present not voting. 
             
         Senator Shapleigh asked unanimous consent to be shown voting aye  
         on the committee substitutes for HB 5, SB 2 and SJR 1.  There  
         being no objection, it was so ordered. 
          
         Senator Wentworth at 2:23 p.m., asked that the Committee of the  
         Whole, rise and report progress.  Without objection, it was so  
         ordered. 
          
         ___________________________________________ 
         Dean John Whitmire, Chair 
          
         ___________________________________________ 
         Patsy Spaw, Secretary of the Senate