MINUTES

             SENATE COMMITTEE ON WORKERS' COMPENSATION, SELECT INTERIM
                            Thursday, February 26, 2004
                                      10 a.m.
                           Capitol Extension, Room E1.028

                                       *****

         Pursuant to a notice posted in accordance with Senate Rule
         11.18, a public hearing of the Senate Select Committee on
         Workers' Compensation was held on Thursday, February 26, 2004,
         in the Capitol Extension, Room E1.028, at Austin, Texas.

                                       *****

         MEMBERS PRESENT:                        MEMBERS ABSENT:
         Senator Todd Staples, Chairman          Senator John Carona
         Senator Robert Duncan                   Senator Craig Estes
         Senator Kyle Janek                      Senator Juan Hinojosa
         Senator Frank Madla
         Senator Jane Nelson
         Senator Royce West

                                       *****

         The chairman called the meeting to order at 10:08 a.m.  There
         being a quorum present, the following business was transacted.

         The chairman made opening remarks and announced that the purpose
         of the meeting was to consider the organization, rules and
         proposed schedule for the Senate Select Committee on Workers'
         Compensation and to receive briefings on interim committee
         charges 1 and 6, issued by Lieutenant Governor David Dewhurst.

         The chairman recognized committee staff, namely, Shannon
         Wickcliffe, Chief of Staff; Jen Moore, Legislative Director;
         Lori Friedman, Committee Director; Jon Schnautz; Policy Analyst
         on workers' compensation; and Patricia Gajda, Committee Clerk.

         Senator Duncan present at 10:13 a.m.

         The chairman laid out the interim committee rules for the Senate
         Select Committee on Workers' Compensation.  Senator Nelson moved
         the adoption of the interim committee rules.  There being no
         objection, the interim committee rules were adopted.

         The chairman laid out interim committee charge 1,  "examine the
         status of the Health Care Network Advisory Committee's (HNAC)
         and the Texas Workers' Compensation Commission's implementation
         of the regional workers' compensation health care delivery

         networks outlined in Article 2 of HB 2600 (77th Legislature,
         2001)."  Invited testimony was heard, testimony left open.
         Persons testifying are shown on the attached list.

         At 11:38 a.m., the chairman laid out interim committee charge
         6,"study the efficiency and effectiveness of the state's
         workers' compensation system including a comparison of the
         medical and indemnity costs associated with the Texas A&M
         University system, the University of Texas system, the Texas
         Department of Transportation and the State Office of Risk
         Management.  Evaluate the potential costs and benefits
         associated with state agency participation in workers'
         compensation networks."  Invited testimony was heard, testimony
         left open.  Persons testifying are shown on the attached list.

         At 11:41 a.m. Senator Nelson assumed presiding duties.

         At 11:46 a.m. Senator Staples resumed presiding duties.

         At 12:13 p.m. the chairman recessed the committee until 12:30
         p.m.

         At 12:37 p.m. the chairman reconvened the Senate Select
         Committee on Workers' Compensation.

         The chairman laid out interim committee charge 6, "study the
         efficiency and effectiveness of the state's workers'
         compensation system including a comparison of the medical and
         indemnity costs associated with the Texas A&M University system,
         the University of Texas system, the Texas Department of
         Transportation and the State Office of Risk Management.
         Evaluate the potential costs and benefits associated with state
         agency participation in workers' compensation networks."
         Invited testimony was heard, testimony left open.  Persons
         testifying are shown on the attached list.

         The chairman announced that the next hearing of the Senate
         Select Committee on Workers' Compensation was tentatively
         scheduled for Thursday, March 25, 2004.

         With no other business to come before the committee and upon a
         motion by Senator Nelson, the chairman recessed the committee at
         2:42 p.m., subject to the call of the chairman.

         ___________________________________________
         Senator Todd Staples, Chairman

         ___________________________________________
         Scott Caffey, Committee Coordinator