MINUTES
SENATE COMMITTEE ON BUSINESS & COMMERCE
Thursday, April 27, 2006
9:00 a.m.
Betty King Committee Hearing Room, 2E.20
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Pursuant to a notice posted in accordance with Senate Rules 11.10 and 11.18, a public hearing of the Senate Committee on Business & Commerce was held on Thursday, April 27, 2006, in the Betty King Committee Hearing Room, 2E.20, at Austin, Texas.
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MEMBERS PRESENT: MEMBERS ABSENT:
Senator Troy Fraser, Chairman Senator Kip Averitt
Senator Kyle Janek, Vice Chairman
Senator Kenneth Armbrister
Senator Kim Brimer
Senator Kevin Eltife
Senator Craig Estes
Senator Eddie Lucio, Jr.
Senator Leticia Van de Putte
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Chairman Fraser called the meeting to order at 9:10 a.m. The Chairman made brief opening remarks on Interim Charge #1 regarding the implementation of SB 5, 79th Legislature, Second Called Session.
Upon completion of Chairman Fraser's opening remarks, the Chairman called Paul Hudson, Chairman, Public Utility Commission (PUC), the invited witness to testify and respond to members' questions. Julie Parsley, Commissioner, PUC, and Barry Smitherman, Commissioner, PUC, were also called to testify and respond to members' questions. Chairman Hudson gave an update on the implementation of SB 5 regarding deregulation, state issued certificates of franchise authority, broadband over powerlines, competitive trends, and expectations.
The roll was called at 9:15 a.m. A quorum was present.
Following Chairman Hudson's testimony, Chairman Fraser called for public testimony. Chairman Fraser called Christopher Haass, City Councilman of San Antonio, to present his testimony and respond to members' questions. Councilman Haass gave an overview of the issues that the city of San Antonio has faced with the implementation of SB 5. Diane Galvan, Director of Communications and Public Affairs, City of San Antonio, and Ben Gorull Jr. , Acting Director of Finance, City of San Antonio, testified along with Councilman Haass. Upon completion of the above witnesses, Chairman Fraser called Steven Segal, City Councilman, City of West University Place to testify and respond to members' questions. Councilman Segal testified on the background of West University Place and its multi-year cable franchise with Time Warner Cable. Following Councilman Segal's testimony, the Chairman called Kevin Lahner, Assistant City Manager, City of Keller to testify and respond to memebers' questions. Mr. Lahner testified on the City of Keller's cable franchise with Verizon Communications. Upon completion of Mr. Lahner's testimony Chairman Fraser called Aaron Day, representing the City of Fort Worth, the Mayor, and City Council. Mr. Day presented his testimony and responded to members' questions. Following Mr. Day's testimony Chairman Fraser called Wayne Knighton, Executive Vice President, Time Warner Cable. Mr. Knighton presented his testimony and responded to members' questions. At 10:36 a.m. Senator Janek assumed the chair. At 10:40 a.m. Senator Fraser resumed the chair. At 10:58 a.m. Senator Fraser moved that the committee stand recessed until 15 minutes after recesses of the Senate; without objection, it was so ordered. At 12:39 p.m. the committee reconvened. Chairman Fraser called Mr. Knighton again to respond to members' questions. The Chairman also called Chairman Hudson, PUC, to testify again and respond to members' questions. Upon completion of Mr. Knighton's and Chairman Hudson's testimony, Chairman Fraser called Bill Peacock representing the Texas Public Policy Foundation. Mr. Peacock presented his testimony and responded to members' questions. Following Mr. Peacock's testimony Chairman Fraser called Oscar Garcia representing the National Silver Haired Congress and The Texas Silver Haired Legislature. Mr. Garcia presented his testimony and responded to members' questions. Upon completion of Mr. Garcia's testimony the Chairman called James Epperson, President, AT&T Texas to testify. Mr. Epperson presented his testimony and responded to members' questions. Following Mr. Epperson's testimony Chairman Fraser called Steve Banta, President, Verizon Southwest to testify. Mr. Banta testified that SB 5 has become the blueprint for state legislation across the country. Upon completion of Mr. Banta's testimony the Chairman called Robert Hunt, VP Regulatory Affairs, Guadalupe Valley Telephone Cooperative to testify. Mr. Hunt presented his testimony and responded to members' questions. Following Mr. Hunt's testimony Chairman Fraser called Monte Akers, Attorney, Texas Coalition of Cities for Utility Issues to testify. Mr. Akers presented his testimony and responded to members' questions. Upon completion of Mr. Akers' testimony the Chairman called Charles Land representing TEXALTEL to testify. Mr. Land presented his testimony and responded to members' questions. Following Mr. Land's testimony Chairman Fraser called Scott Houston, Attorney, Texas Municipal League to testify. Mr. Houston presented his testimony and responded to members' questions. Upon completion of Mr. Houston's testimony, Chairman Fraser moved that public testimony be closed; without objection, it was so ordered. Witnesses registering, but not testifying are listed on the attached list.
There being no further business, at 1:52 p.m. Senator Fraser moved that the Committee stand recessed subject to the call of the chair. Without objection, it was so ordered. _____________________________Senator Troy Fraser, Chair _____________________________Tatum Baker, Clerk