MINUTES

 

SENATE COMMITTEE ON NOMINATIONS

Wednesday, March 28, 2007

11:00 a.m. or upon adjournment

Senate Chamber

 

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Pursuant to a notice posted in accordance with Senate Rule 11.18, a public hearing of the Senate Committee on Nominations was held on Wednesday, March 28, 2007, in the Senate Chamber at Austin, Texas.

 

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MEMBERS PRESENT:		MEMBERS ABSENT:
Senator Mike Jackson Senator Kevin Eltife Senator Glenn Hegar Senator Robert Nichols Senator Eliot Shapleigh		Senator Jane Nelson Senator Kirk Watson

 

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The chair called the meeting to order at 1:38 p.m.  There being no quorum present, the following business was transacted: 

 

The following member arrived after the roll was called:  Senator Nichols.

 

Chairman Jackson recognized Senator Averitt to introduce Joe Hinton, nominee to the Texas Higher Education Coordinating Board, to the committee.  Senator Averitt highly recommended Hinton for confirmation.

 

A quorum was established at 1:44 p.m. and the roll was called.  Senator Shapleigh moved adoption of the minutes from the previous hearing held on March 21, 2007; without objection, it was so ordered. 

 

Chairman Jackson recognized Senator Patrick to introduce his constituents to the committee.  Senator Patrick introduced James Lee, nominee to the Teacher Retirement System of Texas Board of Trustees.  Senator Patrick then introduced WelcomeWilson, nominee to the University of Houston System Board of Regents, to the committee.  Senator Patrick highly recommended both nominees for confirmation. 

 

Senator Jackson called Thomas Kezar, Ernesto Morales, and Michael Vickers, nominees to the Animal Health Commission, to the table.  Jackson announced that Reta Dyess, nominee to the Animal Health Commission, was unable to appear due to a family emergency. 

 

The chair read an introduction for Thomas Kezar written by Senator Wentworth.

 

Chairman Jackson recognized the nominees for opening comments. 

 

Chairman Jackson questioned the nominees about the Animal ID bill.  Morales explained that some type of ID program is necessary for the state.  Morales said that a voluntary Animal ID program will not work.  Instead, the program would need to be mandatory in order to be successful.

 

The chair asked which animals should be included in the identification system.  Morales explained that any animal that is for human consumption should be included along with other animals that may carry diseases.  Morales said that each industry must be handled in its own way.

 

Chairman Jackson explained that many small producers in his district are opposed to the identification system.  Kezar replied that the system is currently voluntary, and that some type of educational program would be helpful to these small producers.  Morales said that it is cheaper and easier for small producers to tag their animals.  Vickers explained that the educational aspect is very important because small operators are still unaware of the identification system. 

 

Chairman Jackson recognized Senator Hegar.  Senator Hegar asked if animal ID is more of a transfer system than an identification system.  Morales explained that it is important to know the herd of origin in order to trace the animal.  He said that the system is used for both transfer and identification purposes.

 

Chairman Jackson asked Vickers if he has noticed a shortage of large animal veterinarians coming out of A&M.  In response, Vickers said that most large animal vets would rather be in large cities rather than rural environments.  This, he explained, is the bigger problem.

 

Chairman Jackson thanked the nominees for their willingness to serve.  The confirmation of the Animal Health Commission nominees was left pending subject to the arrival of a quorum. 

 

Chairman Jackson called Fred Heldenfels, Joe Hinton, Elaine Mendoza, Lyn Phillips, and Whit Riter, nominees to the Texas Higher Education Coordinating Board, to the table. 

 

Chairman Jackson recognized Senator Eltife to introduce Whit Riter to the committee.  The chair recognized Senator Hegar to introduce Lyn Phillips to the committee.  Chairman Jackson read an introduction for Elaine Mendoza written by Senator Wentworth.  The chair read an introduction for Fred Heldenfels written by Senator Watson.

 

Chairman Jackson recognized Senator Williams to introduce Jim Wise, nominee to the University of Houston System Board of Regents.

 

Chairman Jackson recognized the nominees to address the committee with opening comments.  The nominees introduced themselves and explained current accomplishments, goals and challenges that are facing the Higher Education Coordinating Board.

 

Chairman Jackson asked if it is more important to use technology or larger campuses to accommodate population growth.  Riter responded that it is important to incorporate both distance and campus learning.  Chairman Jackson said that the board is also responsible for determining whether colleges will follow two or four year programs.

 

The confirmation of the nominees was left pending subject to the arrival of a quorum.

 

Chairman Jackson called James Lee, Philip Mullins, and Linus Wright, nominees to the Teacher Retirement System of Texas Board of Trustees, to the table.  Chairman Jackson read an introduction for Linus Wright written by Senator Carona.  Chairman Jackson read an introduction for Philip Mullins written by Senator Watson.

 

The chair recognized the nominees to address the committee with opening comments.

 

Chairman Jackson asked how much money is in the TRS fund.  Wright said that somewhere between $107 and $108 billion is in the fund.  Jackson asked the nominees if the legislature is too conservative with the restrictions that are placed on the Teacher Retirement System.  Wright said that the legislature is too conservative.  Lee explained two main issues that are facing the board currently.  The board would like the legislature to allow the use of nontraditional security options and allow the use of outside managers.

 

Chairman Jackson asked about the average rate of return.  The nominees said that the rate of return has been above 8% over the last 40 years.  Last year, the rate of return was 10%.  The nominees explained that they have a long-term perspective.

 

The chair recognized Senator Eltife who explained that teachers are still underpaid in this state.  Eltife said that the state has an obligation to properly fund the retirement system.  Senator Eltife asked that the nominees run the fund as if it was their own retirement money.

 

Mullins explained that TRS is a forward-looking fund.  They are looking for returns over a long period of time.  Wright said that the board will need additional state money in order to meet the 30 year actuary requirement.  Lee said that TRS needs to control and manage risks while also maintaining a long term perspective.  Senator Eltife encouraged the nominees to always be straightforward with the legislature about the money they need.

 

Chairman Jackson explained that the state's contribution rate is currently 6%.  The confirmation of the nominees was left pending subject to the arrival of a quorum.

 

Chairman Jackson called Welcome Wilson and Jim Wise, nominees to the University of Houston System Board of Regents, to the table. 

 

Chairman Jackson recognized Wilson and Wise to address the committee with opening comments.

 

Chairman Jackson asked about Cinco ranch.  Wilson explained that the ranch is a multi-teaching facility.  Jackson asked about the use of distance learning and technology at the University of Houston.  Wise explained that technology is being used extensively.  Jackson and the nominees discussed two and four year degrees at the university.  Wise addressed the committee with his concerns about the high school dropout rates in the state.

 

Chairman Jackson expressed his support for custom-tailored classes and curriculum which will train students to fill available positions in Houston.  Wise agreed that it is important for the university to fill the needs of the community for which it serves.

 

Senator Nichols moved that the nominations of Reta Dyess, Thomas Kezar, Ernesto Morales, and Michael Vickers be confirmed by the committee.  At 3:14 p.m., by a vote of 5 ayes and 2 absent, the committee voted to recommend the nominees to the full Senate for confirmation.

 

Senator Nichols moved that the nominations of Fred Heldenfels, Joe Hinton, Elaine Mendoza, Lyn Phillips, and Whit Riter be confirmed by the committee.  At 3:14 p.m., by a vote of 5 ayes and 2 absent, the committee voted to recommend the nominees to the full Senate for confirmation.

 

Senator Hegar moved that the nominations of James Lee, Philip Mullins, and Linus Wright be confirmed by the committee.  At 3:15 p.m., by a vote of 5 ayes and 2 absent, the committee voted to recommend the nominees to the full Senate for confirmation.

 

Senator Hegar moved that the nominations of Welcome Wilson and Jim Wise be confirmed by the committee.  At 3:15 p.m., by a vote of 5 ayes and 2 absent, the committee voted to recommend the nominees to the full Senate for confirmation.

 

Senator Hegar moved that the committee vote on the non-appearing nominees to the following entities: Midwestern State University Board of Regents, Stephen F. Austin State University Board of Regents, Texas State Technical College System Board of Regents, University of North Texas Board of Regents.  At 3:16 p.m., by a vote of 5 ayes and 2 nays, the committee voted to recommend the nominees to the full Senate for confirmation.

 

Senator Nelson asked to be shown voting with the Chair on all nominations.

 

 

 

There being no further business, at 3:17 p.m. Senator Jackson moved that the Committee stand recessed subject to the call of the chair.  Without objection, it was so ordered. 

 

 

 

 

 

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Senator Mike Jackson, Chair

 

 

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Katherine Chapman, Clerk