MINUTES SENATE COMMITTEE ON NOMINATIONS Monday, May 16, 2005 10:30 a.m. 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, May 16, 2005, in the Capitol Extension, Room E1.016, at Austin, Texas. ***** MEMBERS PRESENT: MEMBERS ABSENT: Senator Jon Lindsay Senator Kevin Eltife Senator Bob Deuell Senator Mike Jackson Senator Gonzalo Barrientos Senator Eddie Lucio, Jr. Senator Jane Nelson ***** The chair called the meeting to order at 10:40 a.m. There being no quorum present, the following business was transacted: The following member arrived after the roll was called: Senator Eltife. Chairman Lindsay announced that self introductions would be made since all the Senators were busy with other committees. He invited the nominees to the Texas Parks and Wildlife to the table. Dan Friedkin, Peter Holt, John Parker and Robert Brown made brief remarks about their personal histories and their interest in Parks and Wildlife. At 10:50 a.m., Chairman Lindsay announced that the committee would take up the nominees to the Texas Residential Construction Commission after the Senate adjourned. The chair recognized Senator Todd Staples and Senator Rodney Ellis who commented on their constituents John Parker and Dan Friedkin respectively. Both men were highly recommended by their Senators. At 10:55 a.m., a quorum was established. Senator Nelson moved adoption of the minutes from the previous hearing; without objection, it was so ordered. Chairman Lindsay recognized Senator Barrientos who asked the nominees about problems with the Parks and Wildlife phone reservation line, noting that for at least ten years the commission said they were working on it. Barrientos told the nominees that it is unacceptable for callers to have to wait a long time or listen to a stupid recording, and reminded them that is their responsibility to correct the problem. Holt said that the commission is underfunded but that it needs improvement. Barrientos asked Brown about employee numbers and ethnic/gender breakdown and Friedkin about game warden salaries. He also asked Holt about hunting over the internet and Parker about the parks grant program. The nominees were then asked to name their highest priority individually. Friedkin said youth outreach for the inner city, Parker said infrastructure and parks and local park funding, Brown said coastal fisheries. Chairman Lindsay asked if flounder should be a game fish. Senator Barrientos moved that a vote be taken on the nominees to the Texas Parks and Wildlife Commission. At 11:07 a.m., by 4 ayes, 0 nays and 3 absent, the committee voted to recommend the nominees to the full Senate for confirmation. The chair announced that it was his intention to vote on the nominees to the Texas Housing and Community Affairs; Senator Barrientos requested that they come back to the committee after the Senate adjourned. Chairman Lindsay announced that the committee would reconvene and take up the nominations to the Texas Housing and Community Affairs (TDHCA) and to the Texas Residential Construction Commission (TRCC) after adjournment of the Senate. At 11:09 a.m. Senator Lindsay moved that the Committee stand recessed subject to the call of the chair. Without objection, it was so ordered. At 2:45 p.m. the committee reconvened. Chairman Lindsay recognized Senator Kel Seliger to introduce his constituent Patrick Cordero, nominee to the Texas Residential Construction Commission. The chair also recognized Senator John Carona to introduce fellow TRCC nominee, Paulo Flores. Chairman Lindsay invited Patrick Gordon, nominee to the Texas Department of Housing and Community Affairs up to the table and informed the committee that C. Kent Conine, the other nominee to the TDHCA could not appear but submitted a letter which was in the member's binders. Chairman Lindsay introduced Gordon in lieu of Senator Eliot Shapleigh and asked for comments. Gordon said flounder should be a game fish. The chair asked what kind of effect letters of opposition or support had on the agency's decisions regarding certain applicants. At 2:55 p.m., Chairman Lindsay announced that, due to lack of a quorum, the committee would vote on the nominees to the TDHCA at his desk upon the Senate's adjournment the following day. Chairman Lindsay asked all the TRCC nominees to come to the table and recognized Senator Robert Duncan to introduce Art Cuevas, Senator Troy Fraser to introduce Scott Porter, Senator Tommy Willliams to introduce Lewis Brown, Vice-Chairman Deuell to introduce Mickey Redwine and Senator Kevin Eltife to introduce John Krugh in lieu of Senator Kyle Janek. The chair then introduced Kenneth Davis for Senator Craig Estes and Glenda Mariott for Senator Steve Ogden. Chairman Lindsay recognized Patrick Cordero, chair of the commission, to explain the responsibilities and goals of the newly created agency. Cordero responded, saying that for a brand new agency, developing infrastructure is important. Registering over 19,000 builders and remodelers and coming up with uniform building and warranty standards have also taken their attention. Chairman Lindsay asked the nominees to walk through the arbitration clause within contracts. Paulo Flores said that the TRCC had limited jurisdiction over arbitration and that they dealt with post-closing versus pre-closing problems. Chairman Lindsay asked if the builders are responsible for their subcontractors; Davis said that most disputes occur before closing on the house. The chair recognized Senator Duncan who told the committee that he is concerned that because the consumers will see registration with the state of Texas as a badge he hopes that the commission does more than just take in the registration money. Duncan named a second concern- whether or not the members of the commission have business relationships with each other and if so, whether they thought it was appropriate to do so. Duncan questioned whether the members should affect legislation in their roles as commissioners. Krugh said he opposed about 30 % of the legislation especially when it contains inspection disclosure. Duncan asked the panel to take off their builder hats and do what is fair and balanced for the people in the state of Texas. Duncan asked Porter if the consumer had the right to know whether or not his/her home had been inspected by anyone other than the builder. Porter replied that they will do what the legislature wants. Krugh said that financial disclosure and litigation information language is not well defined. Duncan stated that the TRCC appeared to be a regulatory body but it has ended up regulating the consumer. Paulo Flores commented that all their work is done in open meetings; they were not the fox watching the henhouse and he felt confident that they were fair and balanced. Duncan who said he was not happy about members of the board killing a bill but that he was not criticizing the Governor's choice of appointees. Chairman Lindsay asked the board if they have enough rule-making authority. Cordero said they had gone as far as they can and expressed the need to probe into the integrity area a little better. Duncan said he had polled Senate members who had the same concerns; Chairmen Lindsay said he had done the same and was aware of the concerns. Vice-Chairman Deuell told the board members that he had seen their criteria for home construction and would be upset if it was his home. Davis said they looked at sixteen different standards in public meeting/work sessions. Deuell asked what were the disagreements, Davis said tolerances-what we could live with, then explained the tedious process of deciding on slab standards and explained that they looked at all the different standards in the same manner. Deuell asked about the dispute resolution process and why the consumer had to pay so much for the initial filing fee. Cuevas said that 92% of the disputes were resolved in favor of the consumer and that if the consumer won, the filing fee was returned. Also the consumer can petition for a waiver. Flores said they were new and should be given a chance. At 3:55 p.m., Chairman Lindsay announced that there was no quorum so no vote would be taken. Chairman Lindsay called Janet Ahmad to the table. Ahmad is president of Homeowners for Better Building. She said she was against all the nominees but one, Mickey Redwine. She testified that in two years, the TRCC still did not require the standard IRC code. Ahmad stressed that the TRCC is a 3.25 million dollar state agency that serves a select few. Three of every four homeowners cannot file a complaint because they have no place to file. She mentioned that KB Homes standards were set by risk management attorneys. Ahmad injected comments from the opposing trial attorney in Sandra Bullock's lawsuit - the lawyer said that his client, Bullock's builder, does not have to build past minimum standards. In summary, Ahmad said that all fees go to the commission which has a budget of $2.5 - $3.25 million. At 4:09 p.m., Chairman Lindsay closed public testimony and announced that the Committee would vote on the nominees to TRCC at his desk the following day. The Chair announced that there was registered testimony on a non-appearing nominee to the State Commission on Judicial Conduct, The Honorable Rex Baker. Chairman Lindsay recognized Brad Rockwell, representing Save Our Springs Alliance and himself. Rockwell provided the Committee with a packet of material containing depositions and other documents. Rockwell said the documents proved conflicts of interest and ethical violations by Baker. Each committee member was provided copies of the testimony. Chairman Lindsay recognized Charles O'Dell who also provided documentation of 29 incidences of ethical violations by Baker on public record. Copies of the documentation were provided for each Committee member. The Chair recognized Judy Spalding as a resource witness who registered but did not testify. Chairman Lindsay announced that due to the lack of a quorum, a vote would be taken on all the nominees to the non-appearing entities at his desk on the following day. There being no further business, at 4:20 p.m., Senator Lindsay moved that the Committee stand recessed subject to the call of the chair. Without objection, it was so ordered. _____________________________ Senator Jon Lindsay, Chair _____________________________ Jazen Wood, Clerk