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