MINUTES
SENATE COMMITTEE ON NOMINATIONS
Monday, February 14, 2005
2:00 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, February 14, 2005, 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 Kevin Eltife
Senator Mike Jackson
Senator Eddie Lucio
Senator Jane Nelson
*****
The Chair called the meeting to order at 2:27 p.m. There being a
quorum present, the following business was transacted:
Chairman Lindsay moved adoption of the minutes from the previous
hearing; without objection, it was so ordered.
The following members arrived after the roll was called: Senator
Jackson at 2:28, Senator Nelson at 2:35 and Senator Lucio at
2:35.
Chairman Lindsay introduced the following three nominees to the
Texas Racing Commission:
Gerald "Kent" Carter, D.V.M., Charles Lee Sowell, and Louis
Edward Sturns, then recognized Mr. Sturns for opening comments.
Sturns indicated he was a former district judge and appointee to
the Tarrant County Court of Appeals by former Governor Bill
Clements. He also served as a Bush appointee to the Texas Ethics
Commission and Trinity River Authority Board.
The Chair recognized Dr. Carter and Mr. Sowell for opening
remarks. Carter said he felt his experience as a veterinarian
was very useful on the commission. Sowell said his appointment
to the Texas Racing Commission was a great honor and he welcomed
the challenge.
Chairman Lindsay recognized Senator Nelson who apologized for
being late to the committee. Nelson said she had known Sturns
forever, that he was an army veteran and a deacon at his church
and she was grateful for his service.
Senator Nelson asked the nominees for comments on video lottery
terminals (V.L.T.s). Sowell began by saying he did not know
exactly what effect V.L.T.s would have on horse and dog racing
in Texas, but recognized their absence could be a factor in the
inability of racing to grow in Texas. Carter, who had experience
in the thoroughbred business, said he was not opposed to V.L.T.s
but didn't know if they would produce an infusion of money. He
gave examples of California and Kentucky as two states where
horseracing is a thriving industry without V.L.T.s.
Chairman Lindsay asked the nominees about pari-mutuel clientele,
how it carried over to video lottery and what impact could
V.L.T.s have on socioeconomics of its clientele.
Sturns admitted not having horseracing experience but felt that
those with lower non-disposable incomes would be more likely to
look for a chance to get out of their situation; therefore
V.L.T.s would naturally have a greater impact on those from a
low socio-economic background.
The Chair recognized Senator Nelson who said although she was
strongly opposed to gambling, she represented the horse industry
and asked the nominees how to bring more horseraces to Texas.
Sowell replied the experts believe that the greater the purse,
the greater number of horses running, and running better horses
would attract more clientele. He mentioned the success of the
Breeder's Cup at Lone Star Park which attracted a large family
oriented crowd.
Senator Nelson asked if any of the three would take a public
position on V.L.T.s. Sowell felt it was appropriate to remain
neutral, Sturns favored supporting Texas law and Carter said it
was the commission's job to regulate and legislature's job to
make.
The Chair recognized Senator Barrientos. Senator Barrientos
asked the nominees questions about the number of employees, the
budget and why they wanted the position. Sturns replied it was a
learning experience and an opportunity to serve. Carter wasn't
sure he did until he was asked by the Texas Veterinary
Association to serve on the commission- he said he would have no
personal gain but did feel he had the gut instincts to help the
horseracing industry succeed in Texas. Sowell spoke of the
thousands of people engaged in the horse industry in Texas and
it is important to play a part in the program.
Senator Barrientos asked why we don't have good purses here.
Sowell said there is not enough knowledge and gave a brief
history of "match" races, where people run horses, betting on
the outcome- winner take all. This system was in effect for many
generations where pari-mutuel betting was not legalized. He
mentioned a New Mexico quarterhorse futurity that manages to
build a large pot by keeping hundreds of people involved in the
process as an alternative to tracks being able to offer large
purses.
Senator Barrientos then asked the nominees if we did not have
pari-mutuel betting would they be in favor of it? Carter replied
he was for it if it provided a stimulus to the horse industry,
adding he has not seen any massive social decline attributed to
it. Senator Barrientos asked Sturns if the distance between
racetracks should be regulated. Sturns answered that the
marketplace should take care of it but public policy and
economic viability would also drive the answer.
Barrientos mentioned the hearing before the commission about the
Austin Jockey Club moving to Pflugerville. He asked Sowell about
his company Retama Management Co. and whether he was affiliated
with Retama Park. Sowell replied his company was named long
before the track existed. Senator Barrientos asked Senator Lucio
where the name retama originated; Senator Lucio said it was the
name of a south Texas tree.
Senator Barrientos questioned Carter about salaries. Carter
answered most state workers are underpaid. Senator Barrientos
asked about the use of steroids and doping of horses and dogs.
Carter replied that because of the heavy regulations and testing
involved, cheating was held to the bare minimum. Sowell answered
because there was such a race between drug companies not only to
create performance-enhancing drugs, but also to create drugs to
detect the enhancement drugs, it has become very rare for
someone to cheat.
Senator Barrientos stressed the importance of the Governor's
office to allow the nominees to be better forewarned.
The Chair recognized Senator Lucio who stressed that the
commission's budget needs to be up to date and the nominees
should bring a true realistic budget to the table.
Senator Lucio asked about the direction we should go in
veterinary care and whether we have enough vets in Texas. Carter
replied there was still adequate need particularly in rural
areas and addressing large animal concerns. Senator Lucio asked
how the horses are affected and expressed concerns about whether
they were being well treated. Carter noted horses are highly
competitive animals who love to run while Sowell noted the
importance of remembering our state's agri-based heritage while
we rapidly become urbanized.
Senator Lucio stressed the importance of economic development in
rural areas through the Texas Enterprise Fund. He then asked
Sowell about his past employment with Enron; Sowell replied he
was an attorney on a team that McNair unloaded on Enron. (Sowell
is V.P. of McNair Group in Houston) spending most of his time in
New Jersey. He noted he left in February of 2000, before Enron
became the center of national attention.
Chairman Lindsay asked how many members are on the commission.
Answer -seven. The Chair then recognized Senator Jackson who
gave a summarized account of the meeting so far, adding that
Galveston would love V.L.T. facilities at their dog park and
asked why other gaming was not an issue. Sowell said the focus
was on V.L.T.s. Senator Jackson suggested he go check out other
gaming casinos such as the Alabama- Coushatta and suggested that
Kemah's boardwalk was perfectly set up for casino gambling.
The Chair recognized Senator Nelson to introduce William A.
Ledbetter, nominee to the Texas Workers' Compensation Commission
(T.W.C.C.).
Chairman Lindsay asked Ledbetter about the problems at T.W.C.C.
Ledbetter responded saying the biggest problem was the inability
of employers to make a choice in a system of medical coverage
and importance of employee's ability to chose within the system.
Another problem mentioned is opting out. Chairman Lindsay asked
who opted out; Ledbetter answered the smaller businesses but
added some super large ones also opted out.
Senator Lucio asked Ledbetter for specific recommendations on
finances of T.W.C.C. to show they were on right track and asked
if Ledbetter had seen SB 400. Ledbetter had seen SB 5, had HB 7
and would study SB 400.
Chairmen Lindsay asked Ledbetter how large a role chiropractors
should play, Ledbetter said they have a place in injury
management but do serve as cost-drivers,
Senator Barrientos asked if Ledbetter could wave a magic wand
what would he request; his reply was that if every employer and
every employee would participate, the system would fix itself.
He stressed the importance of return to work for employees and
that employers should take care to retain workers.
The Chair asked what keeps employers from using the providers
who are the lowest in cost and perhaps the worst providers.
Ledbetter answered that the agency knows the good doctors.
Senator Lucio again expressed budget concerns to Ledbetter who
said he was working on it.
Vice-chairman Deuell brought up areas of concern over conflict
resolution and identifying who can advocate or arbitrate.
Senator Barrientos asked for a definition of a network, how they
are created and whether they can solicit business. Ledbetter
said in group health, insurance carriers set up network.
The Chair asked for a motion, Senator Jackson moved and Senator
Nelson seconded. At 3:35, the vote was 6 ayes, 0 nays to confirm
all the nominees. (Vice-chair Deuell voted aye upon returning to
committee at 4:09). By a final vote of 7ayes, no nays, Texas
Racing Commission nominees Carter, Sowell and Sturns and Texas
Workers' Compensation Commission nominee William A. Ledbetter
were passed through committee and sent to the full Senate for
confirmation.
Senator Barrientos asked that a member of the Texas Historical
Commission be invited to appear even though they were going to
be approved as non-appearing nominees. Barrientos also added
that the nominee for the State Cemetery Committee was a speaker
appointment, not the governor's.
Chairman Lindsay explained that the nominee for the 224th
Judicial District Judge Oscar Diaz was pulled from the list of
non-appearing to be voted upon because his information was not
complete.
A motion was made by Senator Barrientos and seconded by Senator
Nelson. At 4:13 p.m. by a vote of 7 ayes and 0 nays, all
non-appearing nominees from the following entities were passed
through committee and sent to the full Senate for confirmation:
the 57th Judicial District Court, the 417th Judicial District
Court, Texas State Board of Examiners of Professional
Counselors, Texas Historical Commission, Texas Military
Facilities Commission, Texas Optometry Board, Private Sector
Prison Oversight Authority, State Cemetery Committee,
Telecommunications Planning and Oversight Council, Texas
Veterans Commission, Veterans' Land Board and State Board of
Veterinary Medical Examiners.
There being no more business, at 4:17 p.m., Chairman Lindsay
announced the committee would stand in recess subject to the
call of the chair.
___________________________________
____________________________________
Senator Jon Lindsay, Chair
Jazen Wood, Clerk