SEVENTY-EIGHTH LEGISLATURE — REGULAR SESSION
AUSTIN, TEXAS
PROCEEDINGS
FIFTEENTH DAY
(Tuesday, February 11, 2003)
The Senate met at 11:00 a.m. pursuant to adjournment and was called to order by the President.
The roll was called and the following Senators were present:iiArmbrister, Averitt, Barrientos, Bivins, Brimer, Carona, Deuell, Duncan, Ellis, Estes, Fraser, Gallegos, Harris, Hinojosa, Jackson, Janek, Lindsay, Lucio, Madla, Nelson, Ogden, Ratliff, Shapiro, Shapleigh, Staples, VanideiPutte, Wentworth, West, Whitmire, Williams, Zaffirini.
The President announced that a quorum of the Senate was present.
The Reverend Randy Beeler, Alexander and Wesley United Methodist Churches, Bryan, offered the invocation as follows:
Dear Lord, You made everything in this world, from the stars down to the smallest blade of grass. You made us in Your image, and You called us good. You know the burdens of leadership and stewardship. You know better than we do what it is like to make difficult choices. We now face choices about how we will steward the blessings You have given us in this fair land called Texas. There are so many paths and alternatives that offer quick or effortless fixes. Needs also cry out to us, urging immediate attention. So many worthy causes demand that we heed them. Amidst this clamor, Lord, clear our minds, still our hearts, and breathe into us the courage and discernment to wait for not merely good solutions but only the best and most just blessings. Then grant us the resolve to put them into action and to stay the course. Let us strive not to be perfect or to gain the public eye but to serve without regard to our own merit.
The men and women gathered here in the Senate are Your means of grace whereby this part of Your will shall be perfected in Texas. Let them feel Your guidance and encouragement. Let them feel at the end of the day Your, and the people of Texas', salutation: "Well done, good and faithful servant." Amen.
Senator Whitmire moved that the reading of the Journal of the proceedings of yesterday be dispensed with and the Journal be approved as printed.
The motion prevailed without objection.
CO-AUTHOR OF SENATE BILL 156
On motion of Senator Nelson, Senator Estes will be shown as Co-author of SBi156.
CO-AUTHOR OF SENATE BILL 165
On motion of Senator Carona, Senator Shapleigh will be shown as Co-author of SBi165.
CO-AUTHORS OF SENATE BILL 193
On motion of Senator Barrientos, Senators Jackson and Shapleigh will be shown as Co-authors of SBi193.
CO-AUTHORS OF SENATE BILL 310
On motion of Senator Fraser, Senators Ogden and Ratliff will be shown as Co-authors of SBi310.
CO-AUTHOR OF SENATE BILL 313
On motion of Senator Harris, Senator Deuell will be shown as Co-author of SBi313.
CO-AUTHORS OF SENATE CONCURRENT RESOLUTION 1
On motion of Senator Estes, Senators Armbrister, Barrientos, Brimer, Deuell, Gallegos, Janek, Madla, Ogden, Ratliff, Shapleigh, Staples, West, Whitmire, and Williams will be shown as Co-authors of SCRi1.
CO-AUTHOR OF SENATE RESOLUTION 129
On motion of Senator Harris, Senator Barrientos will be shown as Co-author of SRi129.
SENATE BILLS ON FIRST READING
The following bills were introduced, read first time, and referred to the committees indicated:
SB 331 by Brimer
Relating to statistical information concerning certain judicial proceedings to bypass parental notice of a minor's abortion.
To Committee on State Affairs.
SB 333 by Zaffirini
Relating to a chemical dependency counselor or counselor intern.
To Committee on Health and Human Services.
SB 334 by Staples
Relating to student center fees at Stephen F. Austin State University.
To Committee on Education.
SB 335 by Wentworth
Relating to contracts between a school district and a business entity in which a district trustee has a substantial interest; providing a criminal penalty.
To Committee on Education.
192 78th Legislature — Regular Session 15th Day
SB 336 by Wentworth
Relating to marketing an annual print by the state artist for two-dimensional media.
To Committee on State Affairs.
SB 337 by Shapleigh
Relating to requiring the Texas Higher Education Coordinating Board to publish certain performance data provided to the board by general academic teaching institutions.
To Committee on Education.
SB 338 by Averitt
Relating to a local option election for the sale of certain alcoholic beverages in certain cities or towns located in more than one county.
To Committee on Business and Commerce.
SB 339 by Nelson
Relating to issuance of certain liability insurance by the Texas Medical Liability Insurance Underwriting Association.
To Committee on State Affairs.
SB 340 by Staples
Relating to the rendition of property for ad valorem tax purposes; providing civil penalties.
To Committee on Finance.
SB 341 by Ellis
Relating to exemptions from the sales tax.
To Committee on Finance.
SB 342 by Shapleigh
Relating to health care for certain Texans; providing a penalty.
To Committee on State Affairs.
SB 343 by Shapleigh
Relating to the health of school-age children.
To Committee on Education.
SB 344 by Ogden
Relating to the required reporting to the Texas Department of Transportation of information regarding railroad crossings; imposing a penalty.
To Committee on Infrastructure Development and Security.
SB 345 by Ogden
Relating to motor vehicle windshield and window sunscreening devices.
To Committee on Infrastructure Development and Security.
SB 346 by Ogden
Relating to an optional flexible year program for public school students who fail to perform satisfactorily on an assessment instrument or who would not otherwise be promoted.
To Committee on Education.
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SB 347 by Barrientos, Wentworth
Relating to single-member districts for the board of the Barton Springs-Edwards Aquifer Conservation District.
To Committee on Natural Resources.
SB 348 by Lucio, Ellis, Hinojosa
Relating to the punishment for a capital offense.
To Committee on Criminal Justice.
SB 349 by Armbrister
Relating to the intellectual property rights of the Department of Information Resources and certain other state agency intellectual property matters.
To Committee on State Affairs.
SB 350 by Armbrister
Relating to equal access to places of public accommodation.
To Committee on Jurisprudence.
SB 351 by Harris
Relating to the regulation of persons who repossess motor vehicles; providing penalties.
To Committee on Business and Commerce.
SB 352 by Wentworth
Relating to the small and mid-sized district adjustment under the public school finance system.
To Committee on Education.
SB 353 by Shapleigh
Relating to tax increment financing under the Tax Increment Financing Act in certain cities that border Mexico.
To Committee on International Relations and Trade.
SB 354 by Harris
Relating to the jurisdiction of certain district courts and criminal district courts of Tarrant County.
To Committee on Jurisprudence.
SB 355 by Janek
Relating to public health preparedness; providing criminal penalties.
To Committee on Infrastructure Development and Security.
SB 356 by Janek
Relating to an inquest when a body part is found.
To Committee on Criminal Justice.
SB 357 by Shapiro
Relating to the confidentiality of certain reports of criminal activity and to immunity from civil liability for certain persons making or receiving those reports.
To Committee on Criminal Justice.
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SB 358 by Shapiro
Relating to the jurisdiction of constitutional county courts over truancy cases and the appointment of magistrates to hear truancy cases in certain counties.
To Committee on Jurisprudence.
SB 359 by Shapiro
Relating to a local option election for the sale of beer and wine in certain cities or towns located in more than one county.
To Committee on Business and Commerce.
SB 360 by Deuell
Relating to the treatment of certain local chambers of commerce as charitable organizations for certain purposes.
To Committee on State Affairs.
SB 361 by Shapiro
Relating to the precedence of certain municipal highway access rules and ordinances over highway access management orders of the Texas Transportation Commission.
To Committee on Infrastructure Development and Security.
SB 362 by Ellis
Relating to authorizing the issuance of revenue bonds for the University of Houston for recovery from Tropical Storm Allison recovery.
To Committee on Finance.
SB 363 by Madla
Relating to annual reports filed with the Office of Rural Community Affairs by emergency services districts.
To Committee on Intergovernmental Relations.
SB 364 by Janek
Relating to the limits on liability for a health care liability claim.
To Committee on State Affairs.
SB 365 by Janek
Relating to special license plates for county judges and retired county judges.
To Committee on Infrastructure Development and Security.
SB 366 by Lindsay
Relating to the regulation of on-premise signs in certain counties.
To Committee on Intergovernmental Relations.
SB 367 by Lindsay
Relating to the dissolution of the Kuykendahl Road Public Utility District No. 1.
To Committee on Natural Resources.
SB 368 by Lindsay
Relating to the dissolution of the Kuykendahl Road Public Utility District No. 2.
To Committee on Natural Resources.
SB 369 by Lindsay
Relating to the dissolution of the Huffsmith Road Public Utility District.
To Committee on Natural Resources.
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SB 370 by Lindsay
Relating to extending the period for confirmation of the Harris County Municipal Utility District No. 386.
To Committee on Natural Resources.
SB 371 by Lindsay
Relating to extending the period for confirmation of the Harris County Municipal Utility District No. 387.
To Committee on Natural Resources.
SB 372 by Lindsay
Relating to extending the period for confirmation of the Harris County Municipal Utility District No. 388.
To Committee on Natural Resources.
SB 373 by Williams
Relating to notice of an increase in certain rates or charges for certain group policies or contracts.
To Committee on State Affairs.
SB 374 by Williams
Relating to the payment of certain wages by staff leasing services companies.
To Committee on Business and Commerce.
SB 375 by Williams
Relating to the location where the Court of Appeals for the Ninth Court of Appeals District transacts business.
To Committee on Jurisprudence.
SB 376 by Lindsay, Gallegos
Relating to small business development programs of navigation districts and port authorities.
To Committee on Business and Commerce.
SB 377 by Armbrister
Relating to the regulation of high-speed Internet access and broadband services.
To Committee on Business and Commerce.
SB 378 by Armbrister
Relating to the listing of a business location of certain businesses in a telephone directory or database.
To Committee on Business and Commerce.
SB 379 by Armbrister
Relating to persons who are authorized to conduct a marriage ceremony.
To Committee on Jurisprudence.
SB 380 by Armbrister
Relating to the prosecution of theft of service.
To Committee on Criminal Justice.
196 78th Legislature — Regular Session 15th Day
SB 381 by Armbrister
Relating to food manufacturer and food wholesaler licensing requirements under the Texas Food, Drug, and Cosmetic Act.
To Committee on Business and Commerce.
SB 382 by Armbrister
Relating to reimbursement under certain health benefit plans for services provided by licensed athletic trainers.
To Committee on State Affairs.
SB 383 by Duncan, Fraser
Relating to residential construction, including certain warranties, building standards, and dispute resolution.
To Committee on State Affairs.
SB 384 by Hinojosa
Relating to a defense to prosecution for the offenses of perjury and aggravated perjury in certain circumstances.
To Committee on Criminal Justice.
SB 385 by Hinojosa
Relating to the appeal of an order denying a motion for sanctions against a frivolous pleading or motion.
To Committee on Jurisprudence.
SB 386 by Hinojosa
Relating to the use of municipal hotel tax revenue collected by certain coastal municipalities.
To Committee on Intergovernmental Relations.
SB 387 by Hinojosa
Relating to a motor vehicle registration fee to support trauma centers to be collected when a motor vehicle is registered.
To Committee on Finance.
SB 388 by Ellis
Relating to the use and management of certain state-owned real property.
To Committee on Government Organization.
MESSAGE FROM THE HOUSE
HOUSE CHAMBER
Austin, Texas
February 11, 2003
The Honorable President of the Senate
Senate Chamber
Austin, Texas
Mr. President:
I am directed by the House to inform the Senate that the House has taken the following action:
Tuesday, February 11, 2003 SENATE JOURNAL 197
THE HOUSE HAS PASSED THE FOLLOWING MEASURES:
HCR 43, Honoring Byron James Bailey for his contributions to the field of medicine.
SCR 9, Congratulating Lou Edna Musquiz on earning the Skills USA-VICA Advisor of the Year award.
Respectfully,
/s/Robert Haney, Chief Clerk
House of Representatives
SENATE RESOLUTION 88
Senator Bivins offered the following resolution:
WHEREAS, The Senate of the State of Texas is pleased to recognize Februaryi11, 2003, as Midland-Odessa Day at the State Capitol; and
WHEREAS, Odessa and Midland are located in the Permian Basin, an important oil-and-gas-rich area of the state; both cities have been shaped by similar historical developments and have benefited from their proximity to each other; to reinforce their unity and to ensure economic diversification and a prosperous future, Midland and Odessa have adopted the "Two Cities-No Limits" motto; and
WHEREAS, The City of Midland was founded in 1881 when the Texas and Pacific Railway established Midway Station at the midpoint on its Dallas-El Paso line; Odessa was likewise founded in 1881, when the Texas Pacific Railway began using the area for a water stop; and
WHEREAS, During the 1920s, the discovery of rich deposits of oil and gas in the Permian Basin transformed the cities of Midland and Odessa into essential petrochemical centers for the State of Texas; the oil and gas industry invigorated the area and brought economic prosperity; over the years, the cities have added new commercial enterprises to assure greater economic stability in the region; and
WHEREAS, The cities have developed the area's economy with the addition of the Family Dollar Stores, Incorporated, Distribution Center, Texas Independent Energy's 1,000 Mega Watt power plant, and the Cingular Wireless Call Center, which employs over 1,500 individuals; and
WHEREAS, Each city possesses unique cultural treasures; Odessa is home to the Presidential Museum, the Ellen Noel Art Museum of the Permian Basin, and a replica of the Globe Theater; residents also take pride in the presence of the Texas Tech Health Sciences Center and The University of Texas of the Permian Basin; and
WHEREAS, Midland is well known for the Permian Basin Petroleum Museum, Library and Hall of Fame, the Commemorative Air Force Museum, and the Museum of the Southwest; and
WHEREAS, Midland is also extremely proud to be the hometown of President George W. Bush and First Lady Laura Bush, as well as the longtime home of former President George H. W. Bush and Florida Governor Jeb Bush; and
WHEREAS, Midland and Odessa have consistently displayed a spirit of cooperation over the years; they jointly established the Midland International Airport and created the Midland-Odessa Transportation Alliance; they also established the
198 78th Legislature — Regular Session 15th Day
WHEREAS, The more than 100 years of mutual support between these two cities is an inspiring example of cooperation to all Texans; now, therefore, be it
RESOLVED, That the Senate of the State of Texas, 78th Legislature, hereby commend the citizens of Midland and Odessa as they celebrate their unique heritage on this special day; and, be it further
RESOLVED, That a copy of this Resolution be prepared for the two cities as an expression of esteem from the Texas Senate.
The resolution was read and was adopted without objection.
GUESTS PRESENTED
Senator Bivins was recognized and introduced to the Senate Dan Hollmann, Jimmy Goates, Ken Burgess, Chuck Hedges, and Dr. David Watts, accompanied by a delegation of citizens from Midland and Odessa.
The Senate welcomed its guests.
PHYSICIAN OF THE DAY
Senator Armbrister was recognized and presented Dr. Barbara Connor of Hallettsville as the Physician of the Day.
The Senate welcomed Dr. Connor and thanked her for her participation in the Physician of the Day program sponsored by the Texas Academy of Family Physicians.
RESOLUTION SIGNED
The President announced the signing of the following enrolled resolution in the presence of the Senate: HCRi35.
SENATE RESOLUTION 129
Senator Harris offered the following resolution:
WHEREAS, The Senate of the State of Texas is pleased to proclaim February 11, 2003, Kidney Day at the Capitol; and
WHEREAS, Kidney Day is an event to draw public attention to the problems of kidney disease and to inform the Texas Legislature about the public policy needs of kidney patients; and
WHEREAS, The Texas Renal Coalition hosts this day to bring together everyone interested in the kidney patients of Texas, including the patients, the Texas Affiliation of the National Kidney Foundation, the State Association of Medical Professionals, and the Legislature of the State of Texas; and
WHEREAS, The coalition functions as a clearinghouse for information related to legislative issues and advances in research, and it serves as a forum for all parties involved in the treatment, research, or educational programs related to kidney disease; and
Tuesday, February 11, 2003 SENATE JOURNAL 199
WHEREAS, The Texas Renal Coalition and the National Kidney Foundation monitor health policies, work to increase availability of all organ transplantation, and seek to improve public awareness of kidney disease through educational programs; and
WHEREAS, In January of 2003, over 5,000 Texans were on the waiting list for organ transplantation; because many of our fellow citizens die while waiting for a cadaveric organ, more living donors are needed; the number of living donors surpassed cadaveric organ donors in the past year, a trend that is expected to be the wave of the future; and
WHEREAS, To represent and bring praise to living donors, we have with us today three citizens whose lives have been personally touched by organ donation, Tom and Janice Wycoff and Dr. Ernie Hodge, a transplant surgeon; Tom donated a kidney to Janice on their silver anniversary, and Dr. Hodge performed the surgery; and
WHEREAS, The Texas Renal Coalition deserves recognition for its work on behalf of organ transplantation and patients with kidney disease, and all Texans should be proud of the group's efforts; now, therefore, be it
RESOLVED, That the Senate of the State of Texas, 78th Legislature, hereby proclaim February 11, 2003, Kidney Day at the Capitol; and, be it further
RESOLVED, That a copy of this Resolution be prepared for the Texas Renal Coalition as an expression of esteem from the Texas Senate.
HARRIS
BARRIENTOS
The resolution was read and was adopted without objection.
GUESTS PRESENTED
Senator Barrientos, joined by Senator Harris, was recognized and introduced to the Senate Rita Littlefield of the Texas Renal Coalition, Dr. Ernie Hodge, and Tom and Janice Wycoff, accompanied by a Kidney Day at the Capitol delegation.
The Senate welcomed its guests.
MESSAGE FROM THE HOUSE
HOUSE CHAMBER
Austin, Texas
February 11, 2003
The Honorable President of the Senate
Senate Chamber
Austin, Texas
Mr. President:
I am directed by the House to inform the Senate that the House has taken the following action:
200 78th Legislature — Regular Session 15th Day
THE HOUSE HAS PASSED THE FOLLOWING MEASURES:
HCR 42, Recognizing February 11, 2003, as Midland-Odessa Day at the State Capitol.
Respectfully,
/s/Robert Haney, Chief Clerk
House of Representatives
SENATE RESOLUTION 121
Senator Zaffirini offered the following resolution:
WHEREAS, The Senate of the State of Texas is pleased to recognize Milford and Ada Jacobs on the grand occasion of their 65th wedding anniversary on February 6, 2003; and
WHEREAS, Milford Jacobs and Ada Davis were married by Rabbis David Frish and David Tamarkin in the home of Ada's parents on February 6, 1938; and
WHEREAS, The couple spent their honeymoon traveling in Milford's 1937 Ford two-door coupe; in Dallas they stayed at the Adolphus Hotel, where the room rate was $4.75 per night; Mrs. Jacobs kept the room receipt, and 65 years later, the hotel will honor the couple by again charging them the 1938 rate; and
WHEREAS, Milford Nat Jacobs, born March 15, 1913, is from Luling and has been a member of the Automobile Wholesalers of Texas for 55 years; Ada Davis Jacobs is from Laredo and was born May 30, 1916; she taught in San Antonio schools for over 25 years and was a founder of a preschool for blind children; and
WHEREAS, The world has changed considerably during the years of their marriage, yet Mr. and Mrs. Jacobs have cherished traditional family and moral values; and
WHEREAS, Over the years, they have grown stronger in their love and devotion as together they have experienced the joys and sorrows of everyday living; and
WHEREAS, Mr. and Mrs. Jacobs have been blessed with a wonderful family: their children and their spouses, Sandra and Fred Kline, Gary and Jessie Jacobs, Jack and Peggy Jacobs, and Ronni and Jason Chozick; their grandchildren and their spouses, Scott and Michele Kline, Stacey and Adam Schwartz, Stefani and David Shanberg, Amy Chozick, and Gregory, Marc, Lisa, Robin, Maya, and Matthew Jacobs; and their great-grandchildren, Ryan, Emily, Andrew, Jacob, Alissa, Noah, and Natalie; and
WHEREAS, The long and happy union of Milford and Ada Jacobs is an inspiration to all who know them; now, therefore, be it
RESOLVED, That the Senate of the State of Texas, 78th Legislature, hereby join the family and friends of Mr. and Mrs. Milford Jacobs in extending best wishes to them and congratulations on their 65th wedding anniversary; and, be it further
RESOLVED, That a copy of this Resolution be prepared for this distinguished couple as a memento of this special day in their lives.
The resolution was read and was adopted without objection.
GUESTS PRESENTED
Senator Zaffirini was recognized and introduced to the Senate Milford and Ada Jacobs, accompanied by their children.
The Senate welcomed its guests.
Tuesday, February 11, 2003 SENATE JOURNAL 201
AT EASE
The President at 11:37 a.m. announced the Senate would stand At Ease pending conclusion of the Joint Session.
JOINT SESSION
(To hear the State of the State Address by the Honorable Rick Perry, Governor of the State of Texas)
The President announced the time had arrived for the Joint Session, pursuant to the provisions of HCR 35.
The President of the Senate and the Senators present, escorted by the Secretary of the Senate and the Sergeant-at-Arms, proceeded to the Hall of the House of Representatives at 12:00 noon.
The President was announced and, on invitation of the Speaker, occupied a seat at the Speaker's Rostrum.
The Senators were announced and were admitted and escorted to seats prepared for them along the aisle.
In accordance with the provisions of HCR 35, the following Committee to Escort Governor Rick Perry to the Joint Session was appointed:iiSenators Wentworth, Chair; Bivins, Ratliff, Whitmire, and Zaffirini on the part of the Senate and Representatives S.iTurner, Chair; Hupp, Oliveira, Van Arsdale, and Wong on the part of the House of Representatives.
The Honorable Rick Perry, Governor of the State of Texas, and his party were announced by the Doorkeeper of the House of Representatives.
The Governor and his party were escorted to the Speaker's Rostrum by Senators Wentworth, Chair; Bivins, Ratliff, Whitmire, and Zaffirini on the part of the Senate and Representatives S.iTurner, Chair; Hupp, Oliveira, Van Arsdale, and Wong on the part of the House.
The Honorable David Dewhurst, President of the Senate, called the Senate to order and announced a quorum of the Senate present.
The Honorable Tom Craddick, Speaker of the House of Representatives, called the House to order, announced a quorum of the House present, and stated the purpose of the Joint Session.
Speaker Craddick introduced the following platform guests:iiFirst Lady Anita Perry and Secretary of State Gwyn Shea.
The interpretation for the deaf of the State of the State Address was provided by Sandra Rouse.
The President introduced His Excellency Rick Perry, Governor of the State of Texas, who addressed the Joint Session as follows:
Lieutenant Governor Dewhurst, Speaker Craddick, statewide officeholders, Members of the House and Senate, my fellow Texans, it is an honor to speak to you again from the dais of this historic chamber. On the floor of this House, I enjoyed some of my best years and developed lasting
202 78th Legislature — Regular Session 15th Day
This is the second occasion that I have spoken on the state of our state. Two years ago I appeared before you only one month after taking office. Today I come before you under very different circumstances. In the past two years, I have come to know this state and its people better than ever before. I have had the chance to see up close our state in all its diversity–its great accomplishments and the people who make them so. And I've never doubted what a blessing it is to be Governor of this one people, this one Texas.
We've got good reason to be proud of this state. Look at what we have accomplished in the last four years. Today in Texas, we have more than one million people enrolled in our colleges and universities, the highest total ever. Fourth-grade students of every background, including our Hispanic, African American, and Anglo students, rank in the top ten in the nation in the subjects of reading and math. Thousands of teachers have migrated to Texas in recent years because of improved benefits. Today in Texas, a half million children are insured under the Children's Health Insurance Program. In the last two years, Texas has added four times as much wind power capacity as any other state. And we are not only exploring the potential of renewable energy, we have sent a message to old polluters:iiclean up or shut down. Today in Texas, we are spending $1.7ibillion more on transportation projects than we did just four years ago. We have begun a new road-building program to help some of our poorest Texans in colonias. And since the tragic events of Septemberi11th, our emergency response personnel are better prepared, our health alert system is better coordinated, and our resources and our people are more secure. And there is one other recent piece of good news. We have now learned our job base will expand by the thousands, and our economy by the billions, because Toyota is coming to San Antonio. With us today is Vice-president Jim Wiseman with Team Toyota. Please help me welcome him to Team Texas.
These accomplishments are just a part of our story. Today and every day in Texas millions of men and women work hard, pay their taxes, and contribute to the world's tenth largest economy. On their shoulders we have built a prosperous, high-tech society that is the envy of many, a state that attracts people and businesses, ingenuity and opportunity from every corner of the globe. As the international news magazine The Economist put it
Tuesday, February 11, 2003 SENATE JOURNAL 203
When I took office two years ago, economic storm clouds had only begun to form. Today those clouds cast a dark shadow over our state and place a special burden upon our government. The fiscal challenge we face cannot be blamed on Texas families. No one can say Texans are not working hard enough or paying enough in taxes. Just ask them. Most will tell you they are doing plenty of both. Since 1990, our population has grown by 27 percent and inflation has increased by 37 percent. And what has government grown by in the same period:ii125 percent. We would be wise to remember a universal truth:iino government has ever taxed and spent its way to greater prosperity. The challenge of our time and the mandate of our people require a new approach and a new direction.
As past generations of Texans discovered, the darkest of clouds and most difficult of circumstances often reveal a silver lining of opportunity. Difficult as times may be, surely that is true today. That is why we must seize the opportunity before us, not by merely tinkering with the levers of the government machinery, but by rebuilding the entire engine. We must begin by setting clear and limited priorities. And I will begin by stating my top three priorities for all of you:iithe education of our children, the security of all Texans, and the fiscal responsibility of our government. Education because it represents the greatest investment we can make in a future of prosperity. Security because the economic security of citizens and the safety of citizens are the core responsibilities of any government. And fiscal responsibility because neither of these priorities can be met unless our spending is disciplined. In funding the most sacred of obligations, no expenditure should be immune from inspection. We must not let the most worthwhile of programs collapse under their own weight either because spending goes uncontrolled or unquestioned. Every dollar spent by government, every line item in the budget, must be analyzed and justified. That is why I joined the leadership of the House and Senate in offering a budget built from zero.
It's time to begin anew to review and rebuild priorities. It would be easy to do otherwise, to simply add to the tax burden of Texans. But Texans elected us to set priorities, not to raise the price of government. We should follow the example of millions of Texas families. When times are tough, they don't keep doing what they have always done, spending what they have always spent. They start from scratch. That does not mean they won't make the mortgage or rent payment, because they know they must cover the basics, but it may mean no cable TV, more meals at home, or bringing lunch to work. When ends don't meet, our families prioritize. Why shouldn't government? That's why I have asked the Members of both legislative bodies to work with me to produce a budget document that is more
204 78th Legislature — Regular Session 15th Day
Sometimes it is easy to forget that behind every government program there is a real taxpayer funding it. So that the taxpayers are not lost in this debate, I have invited two of them to join us today. Here with us today are retired trucker Ronnie Congleton and small business owner Wanda Rohm. Please welcome them to their State Capitol. These Texans represent what is right about our state:iia trucker who has kept the wheels of commerce churning and a small business owner who toils to create jobs for the people of San Antonio. They are willing to pay their fair share because they see a legitimate role for government, but they also see a limited role for government.
Many Texans are enduring difficult economic times. Some have seen the value of their retirement accounts plummet and, in some instances, their pensions destroyed. Some have lost jobs because of corporate misdeeds, and virtually all have seen their insurance costs rise with little explanation. That is why we must not only try, we must succeed, in prioritizing our budget without raising taxes. We have already begun to take responsible measures. Because of the dedicated Texans leading our agencies, we are reducing current year spending by seven percent, an effective 13 percent reduction with only seven months left in the fiscal year. It is a painful process. I know. My office has eliminated unnecessary dues and fees, reduced our staff size, and returned unexpended balances to achieve a 16 percent reduction in our operating budget. And I have done this before. I served on the House Appropriations Committee when Texas suffered through tough times in the oil patch and the real estate market. I have managed an agency budget, and for 18 years I have examined government spending from virtually every perspective. Like me, David Dewhurst showed as Land Commissioner that agencies can prioritize spending. The bottom line is this:iiwe must separate wants from needs, identify core priorities, and put the common interest ahead of narrow special interests.
The deliberative process is in place by which Members of the Legislature can analyze the value of every expenditure. I respect that process. But as Governor, I also have a responsibility to fight for the priorities of Texans. So today I come before you with specific suggestions to reduce our budget. First, we can save taxpayers $1.7ibillion by adopting many of Comptroller Strayhorn's innovative e-Texas ideas in recent reports. We can also save $500imillion by redirecting Telecommunications Infrastructure Fund dollars to the technology allotment for schools. And in
Tuesday, February 11, 2003 SENATE JOURNAL 205
Today my office will be releasing a more detailed list of these savings and other ideas that bring our total savings to $9.5ibillion. My friends, it can be done. We can balance our budget without raising taxes. In addition, consider the following categories of potential savings. We spend $2.6ibillion on professional fees and services, $27imillion on subscription and membership costs, $292imillion on computer equipment, $178imillion on furnishings and equipment, and $206imillion on travel each biennium. A 15 percent reduction in administration costs alone would yield $2ibillion in savings.
Now is the time to consolidate, restructure, and, when necessary, eliminate boards and agencies. We have to ask ourselves why facility leasing and space planning is performed by 162 state employees at 17 agencies when it can be done by one agency:iithe Texas Building and Procurement Commission. We could abolish the Aircraft Pooling Board, sell its assets, and allow the private sector to perform the same job for less money. And we must ask ourselves if spending half a million dollars on a Center for Financial Responsibility is truly financially responsible. In a time of prioritization, expenditures can't be evaluated in a vacuum but in comparison to other items. Starting from zero, every dollar spent by government must be prioritized. A nineipercent reduction may be too much for certain critical agencies and not enough for others.
I know these ideas will face detractors. No one likes to talk about reductions. But when difficult times beckon, leaders must not do what's easy but what's right. Sam Houston said it best, "Do right, and risk consequences." That is what leadership is about, and that is what we must
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In the last two weeks, we have learned that Hewlett Packard will transfer 475 jobs to Houston and that Toyota will bring at least 2,000 jobs to San Antonio, in each case because of our strong business climate. But the lesson of these two success stories is not complacency, just the opposite. We must do even more to grow our economy and to avoid future economic downturns. To help grow our economy, today I am proposing the creation of a Texas Enterprise Fund. To meet the demands of a competitive marketplace, we must be nimble, aggressive, and forward-looking. Today I propose investing 30 percent of the revenue projected for the Economic Stabilization Fund, roughly $390imillion, into a new Enterprise Fund. We could set aside $200 million to close the deal with companies like Toyota, recognizing that not one dollar would be spent without the guarantee of jobs and paychecks coming to Texas. We could also fund efforts to attract Nobel Laureates and endowed chairs in the promising fields of technology and biotechnology. We could even fund the Border Health Institute in El Paso and the Regional Academic Health Center in the Rio Grande Valley. We could fund these initiatives, and more, so that Texas has a stronger, more diverse foundation for the future. The best way to avert future rainy day scenarios is to grow our economy. Using the Rainy Day Fund to meet recurring obligations is short-sighted. It leaves future Legislatures with a check they must write but an account they may not be able to draw from. Investing in jobs is the wiser course for our future. And to further protect our job base we must continue the effort to stop lawsuit abuse in Texas. By responsibly balancing our budget and taking innovative measures to create jobs, we will address the most urgent needs of both the present and our future.
It is clear that this session will be about one dominant issue:iispending. But there are other priorities I would like to discuss in brief. For this legislative session to be a success, this Legislature must take strong action to end insurance fraud, stop unfair pricing practices, and lower homeowners insurance rates. We must give the Department of Transportation the tools they need to build a 21st century transportation system that gets traffic moving, removes hazardous vehicles from our cities, reduces pollution, and adds to our job base. We must pass a budget that fully meets our clean air obligations because future generations deserve nothing less. And we must not only improve water conservation but desalinate the saltwater that splashes upon our coast each day. With the presence of many valuable resources and numerous points of entry, we must also remain vigilant in protecting this great state from the destructive designs of terrorist enemies. And we must reform our medical malpractice laws by passing a $250,000 cap on non-economic damages. All across Texas, patients are seeing their doctors hang up their white coats and stethoscopes because they are being forced out of practice. When specialists cannot afford malpractice insurance,
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These are priorities we must address in this session. There are other challenges that may take longer to solve. School finance is one such issue. There is no clear solution currently on the table. But beginning now, we must work until a solution is found, because the era of Robin Hood must come to an end. There is no greater cause than the education of our children, all of our children. That's why I will reject any effort to lower standards and weaken educational accountability. At the same time, we must not be content with a system that still allows children to slip through the cracks. The complacency of conventional wisdom tells us some children are destined to fail and some schools cannot be fixed. Galena Park Independent School District shows the conventional wisdom is wrong. Galena Park serves a student population that is 66 percent economically disadvantaged, and they spend less than the state average per student. In some places that would be an excuse, but in Galena Park it's a challenge. And as the largest, most diverse school district in Texas with an exemplary rating, they are meeting that challenge. Please join me in welcoming the architect of Galena Park's educational renaissance, Dr. Shirley Neeley. As Dr. Neeley reminds us, innovation and achievement start at the local level.
As a state, we must set high standards and demand results. But we must never let bureaucratic mandates stand in the way of those results. Today I am offering a proposal called the Education Freedom Plan. It is based on an important principle:iilocal educators and local citizens know what's best when it comes to the education of their children. My proposal will eliminate costly mandates that stand in the way of achievement. While we have a vested interest in enforcing class size limits and health and safety standards, there are many mandates that require needless paperwork and waste precious resources. Recently, Eanes Independent School District in Austin was forced to spend $8,000 on a compensatory education audit despite the fact that they don't receive any compensatory education dollars. School districts across this state are diverting precious dollars away from the classroom to pay consultants for audits, to pay for higher utility costs than necessary, and to meet the mandates placed upon them by the state. Schools find themselves producing paperwork on their pest management programs, their recycling efforts, and their sanitation efforts. Sometimes they even generate paperwork on how to reduce paperwork. According to our school administrators and school board members, with mandate relief we can free up a minimum of $500 million for local schools and put that money where it
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We must also continue to build on our recent progress in reading and math by strengthening the science curriculum. My Science Initiative will improve pay for expert science teachers while preparing our students for the technology jobs of the future. It is time the State of Texas reimbursed our generous teachers who buy school supplies. My plan rewards teacher generosity and teaching excellence, and it does something else:iiit protects educators from frivolous lawsuits. My education plan is achievable and, even better, it's funded. It qualifies Texas for at least $400 million additional federal dollars. But in the end, the greatest dividend will not be measured in dollars spent but in lives changed. We must renew our commitment today to educating every child. Young Texans who abandon school drop out on their future, and they pay the price for it in terms of lost hopes and unfulfilled dreams. That's why we need a High School Completion Initiative. Funded by a mixture of federal, state, and private dollars, we can replicate the model of success in our elementary schools by identifying students at risk of dropping out and developing high school completion plans for each one of them. Students need more choices in order to experience opportunity. Let's give our high school students numerous options for completing their coursework, such as flexible scheduling, additional tutoring and mentoring, and access to innovative learning environments like middle colleges. And let's allow parents of children stuck in substandard schools to choose the best school for their child, whether that school is public, private, or religious. I know in this chamber there are Republicans and Democrats willing to take this step. They know what I know:iiwhen you give parents a choice, you give children a chance.
This will be a difficult session because there will be many things distracting us from the greater good. But let's not allow partisanship to be one of those hurdles. In Washington, the party out of power is often referred to as the loyal opposition. But the emphasis seems to be on the word opposition. Instead of speaking with one another, disagreements are aired at dueling press conferences. Common ground, and many times common decency, take a back seat to political posturing and partisanship. There's a better way. It's called the Texas way. For nearly 40 years of my life, I called myself a Democrat. For nearly six years, I served in this chamber as one. With a unique perspective, I have learned an important lesson:iineither party has a patent on virtue. What matters most is what is best for Texas. And my door is open to any of you who enter in good faith, not as a member of a particular side, but as a partner in good governance. The Texas of a new century must be built on the legacy of centuries past. Texans have always been bold, pioneering, and unrestrained in vision, focused on the far horizon.
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In the skies over Texas ten days ago, we saw the tragic result that sometimes befalls those who dare to pioneer. But we saw so much more. In the lives of a commander from Amarillo, a pilot from Lubbock, an aeronautical engineer educated in Arlington, in each of the Columbia seven who trained at Johnson Space Center in Houston, we saw a spirit of boldness, a determination to reach high, to leave old worlds for new, to make a difference for all of mankind. Such heroes stir the soul, inspire the imagination, and point our hearts to great pursuits. They also remind us that the future belongs to the brave and the bold. Whether you were born here or found the right path that led you here, it makes no difference. The Texas dream is a condition of the heart and a state of mind. Texans never embrace the status quo. We are too busy pushing the envelope of freedom, focusing on that far horizon.
As we move forward in this new session, let us remember at all times the fundamental principle that guides our actions:iigovernment should not limit freedom; freedom should limit government. Let us go forward, together in a spirit of boldness, a spirit that has defined the many generations of Texans, past and present, a spirit that will once again lead us to a better tomorrow and to that far horizon. Thank you, God bless you, and may God bless this one Texas.
CONCLUSION OF JOINT SESSION
The President at 12:46 p.m. announced that the purpose for which the Joint Session was called having been completed, the Senate would stand At Ease until 1:30ip.m. today.
IN LEGISLATIVE SESSION
The President at 1:30 p.m. called the Senate to order as In Legislative Session.
SENATE RESOLUTION 123
Senator Barrientos offered the following resolution:
WHEREAS, Longhorns and Aggies will unite today at the State Capitol to celebrate Orange and Maroon Legislative Day 2003 and to promote higher education in the State of Texas; and
WHEREAS, Delegates from the Texas Exes and The Association of Former Students–the two alumni associations for The University of Texas at Austin and Texas A&M University–have set aside the longstanding rivalry between these two outstanding institutions in a symbolic gesture of unity and state pride; and
WHEREAS, Alumni from the two schools total some 710,000, and between them UT and A&M have a combined annual enrollment of more than 95,000 students, with nearly 21,000 students receiving a degree each year; the schools boast numerous superb museums and libraries, including the Lyndon Baines Johnson Library and Museum and the George Bush Presidential Library and Museum, and both universities are renowned for their exceptional research; and
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WHEREAS, Both UT and A&M help prepare Texas youth for higher education through the universities' six outreach centers located throughout the state, and more than 90 percent of the centers' participants have successfully pursued higher education; and
WHEREAS, The universities' faculties feature Nobel laureates and nationally recognized scholars, and the student bodies include national merit scholars, gold-medal winning Olympians, and many of the Lone Star State's most promising young people; in addition, the schools offer an amazing range of postgraduate opportunities through the nearly 300 graduate degree programs that are available; and
WHEREAS, Both The University of Texas at Austin and Texas A&M University have established themselves as preeminent institutions of higher education on the state, national, and international levels, and Texans are fortunate to have access to these two exceptional state university systems; now, therefore, be it
RESOLVED, That the Senate of the 78th Texas Legislature hereby recognize February 11, 2003, as Orange and Maroon Legislative Day and commend alumni from UT and A&M for their commitment to promoting higher education in the Lone Star State.
The resolution was again read.
The resolution was previously adopted on Monday, February 10, 2003.
CONCLUSION OF MORNING CALL
The President at 1:39 p.m. announced the conclusion of morning call.
SENATE BILL 310 ON SECOND READING
On motion of Senator Fraser and by unanimous consent, the regular order of business was suspended to take up for consideration SBi310 at this time on its second reading (Submitted by Governor as an emergency matter):
SB 310, Relating to rate information to be filed by certain insurers of residential property; providing an administrative penalty.
The bill was read second time.
Senator Van de Putte offered the following amendment to the bill:
Floor Amendment No. 1
Amend SB 310, in SECTION 1 of the bill, as follows:
(1)iiIn Subsection (f), Section 3, Article 5.141, Insurance Code (Committee printing page 2, line 25), strike "before June 1, 2003" and substitute "not later than the 30th day after the effective date of this article".
(2)(a)iiStrike Subsections (a) and (b), Section 5, Article 5.141, Insurance Code (Committee printing page 2, lines 40-53), and substitute the following:
(a)iiInformation filed by an insurer with the department under this article that is confidential under a law that applied to the insurer before the effective date of this article remains confidential and is not subject to disclosure under Chapter 552, Government Code, except that the information may be disclosed as provided by
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(b)iiReletter subsequent subsections and cross-references accordingly.
(3)iiIn Subsection (d), Section 5, Article 5.141, Insurance Code (Committee printing page 3, lines 5-6), strike "as provided by Subsection (a) of this section".
(4)iiIn Subsection (d), Section 5, Article 5.141, Insurance Code (Committee printing page 3, line 6), between "Confidential information" and "that is", insert "described by Subsection (a) of this section".
(5)iiIn Article 5.141, Insurance Code, add the following new Section 7 and renumber existing sections accordingly:
Sec.i7.iiNOTIFICATION; NONCOMPLIANCE. The commissioner shall notify the governor, the lieutenant governor, the speaker of the house of representatives, and the members of the legislature of the names of the insurers whom the commissioner requested to make the rate filings under this article and the names of the insurers who did not respond in whole or in part to the commissioner's request. This notification shall be made by separate letter on the fourth day following the date on which the commissioner determines the filing is due under Section 3(g) of this article.
The floor amendment was read and was adopted without objection.
Senator West offered the following amendment to the bill:
Floor Amendment No. 2
Amend SB 310, in SECTION 1 of the bill, in Subsection (c), Section 3, Article 5.141, Insurance Code (committee printing page 2, lines 6-7) of the bill, by striking lines 6-7 and substituting the following:
(2) any statistics or other information to support the rates to be used by the insurer, including underwriting guidelines;
The floor amendment was read and was adopted without objection.
Senator West offered the following amendment to the bill:
Floor Amendment No. 3
Amend SB 310, committee report printing, as follows:
(1)iiIn SECTION 1 of the bill, strike Section 5(c), Article 5.141, Insurance Code (committee report printing, page 2, line 54 through page 3, line 2).
(2)iiIn SECTION 1 of the bill, in Section 5(d), Article 5.141, Insurance Code, (committee report printing, page 3, line 3), strike "(d)" and renumber appropriately.
The floor amendment was read and was adopted without objection.
Senator Ellis offered the following amendment to the bill:
Floor Amendment No. 4
(1)iiAmend SB 310 by adding a new SECTION 2, to read as follows, and renumbering the subsequent SECTIONS:
SECTIONii2. Chapter 38, Insurance Code is amended by adding Section 38.107 to read as follows:
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Section 38.107. DATA COLLECTION REGARDING CERTAIN LIFE INSURERS
(a) PURPOSE. The purpose of this section is to require on a one-time basis that insurers that write or have written small face amount life insurance, including industrial life or burial insurance, in this state, immediately after the effective date of this section, file rates and supporting data with the commissioner of insurance for the purpose of the preparation of a summary report for submission to the 78th Legislature. The report shall contain a review of the rates:
(1) to inform the legislature as to whether the rates are just, adequate, and reasonable and not excessive;
(2) to identify those policies, forms and rates that are unfairly discriminatory; and
(3) to assist in the determination of the most effective and efficient regulatory system for small face amount life insurance, including industrial life and burial insurance, in Texas.
(b) APPLICABILITY. (1) This subchapter applies to each insurer authorized to write life insurance in this state, including an insurer operating under Chapter 841, 881, 882, 884, 885, 886, 887, 888, or 982 and an insurer exempt under Section 887.102.
(2) This subchapter applies to any individual or group life insurance policy issued in this state, including an industrial life insurance policy offered under Chapter 1151.
(c) DEFINITION. In this section, "small face amount life insurance" means individual or group life insurance with an initial death benefit of $15,000 or less.
(d) RATE INFORMATION. (1) Insurers must file small face amount life insurance rates and supporting information with the commissioner in accordance with the requirements determined by the commissioner under this section.
(2) Filings made by each insurer must be sufficient to respond to the commissioner's request for information under this section.
(3) As determined by the commissioner under Subsection (e) of this section, the insurer shall file:
(A) all small face amount life insurance rates and underwriting and rating manual information used to determine the rates; and
(B) any statistics or other information to support the rates to be used by the insurer;
(4) The commissioner shall determine which insurers are required to file the rating information under this section.
(5) The commissioner shall determine the type of information to be included in the filing and the date on which the filing is due.
(6) The commissioner may require only one filing of rates and supporting information by an insurer under this section and may require additional information as provided by Subsection (d) of this section. The commissioner shall require the one filing of rates as provided by this section to be made not later than the 60th day after the effective date of this section.
(7) The commissioner shall issue an order specifying the information that insurers must file to comply with this section and the date on which the filing is due.
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(8) iThe commissioner is not required to hold a hearing before issuing the order required under Subdivision (7) of this section.
(9) iThe commissioner shall notify an affected insurer of the order requiring the rate filing information under this section on the day the order is issued.
(e) iADDITIONAL INFORMATION. After the initial rate submission under Subsection (d) of this section, the commissioner may require an insurer to provide additional, reasonable information for purposes of the clarification or completeness of the initial rate submission.
(f) iREPORT. (1) The commissioner shall submit a report to the governor, the lieutenant governor, the speaker of the house of representatives, and the members of the legislature on the information collected from the filings required under this section. The report shall be submitted not later than the 30th day after the effective date of this section.
(2) iThe report required under this section shall be presented in a manner that protects the identity of individual insurers:
(A) ito inform the legislature as to whether the rates are just, adequate, and reasonable and not excessive or unfairly discriminatory; and
(B) ito assist the legislature in the determination of the most effective and efficient regulatory system for small face amount life insurance, including industrial life and burial insurance, in Texas.
(g) iAPPLICATION OF CERTAIN LAW. Chapter 40 of this code does not apply to an action of the commissioner under Subsection (c) of this section.
(h) iFAILURE TO COMPLY. An insurer that fails to comply with any request for information issued by the commissioner under this section is subject, after notice and opportunity for hearing, to sanctions as provided by Chapters 82 and 84 of this code.
The floor amendment was read.
On motion of Senator Ellis and by unanimous consent, Floor Amendment No.i4 was withdrawn.
On motion of Senator Fraser and by unanimous consent, the caption was amended to conform to the body of the bill as amended.
SB 310 as amended was passed to engrossment by a viva voce vote.
SENATE BILL 310 ON THIRD READING
Senator Fraser moved that Senate Rule 7.18 and the Constitutional Rule requiring bills to be read on three several days be suspended and that SBi310 be placed on its third reading and final passage.
The motion prevailed by the following vote:iiYeasi28, Naysi3.
Yeas:iiArmbrister, Averitt, Barrientos, Bivins, Brimer, Carona, Deuell, Duncan, Ellis, Estes, Fraser, Gallegos, Harris, Hinojosa, Jackson, Lindsay, Lucio, Madla, Nelson, Ratliff, Shapiro, Shapleigh, Staples, Van de Putte, West, Whitmire, Williams, Zaffirini.
Nays:iiJanek, Ogden, Wentworth.
The bill was read third time and was passed by the following vote:iiYeasi31, Naysi0.
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GUESTS PRESENTED
Senator Zaffirini was recognized and introduced to the Senate a delegation from Texas A&M International University in Laredo: Susana Berrones, Lizette Cedillo, Sonia Perez, Leticia Gonzales, Sandra Moncivais, and Juan Jose Berrones, accompanied by their sponsor, Denise Longoria.
The Senate welcomed its guests.
RESOLUTIONS OF RECOGNITION
The following resolutions were adopted by the Senate:
Memorial Resolutions
SR 134 by Barrientos, In memory of JoAnn Bennett Bardin of Austin.
SR 141 by Wentworth, In memory of Frank Manuppelli of San Antonio.
Congratulatory Resolutions
SR 120 by Armbrister, Congratulating the citizens of Matagorda County.
SR 127 by Averitt, Commending Leadership Waxahachie for its contributions to Texas.
SR 136 by Zaffirini, Commending Oscar Garcia, Jr., of Karnes City for saving the life of a nine-month-old infant.
SR 137 by Zaffirini, Nelson, Shapiro, and VanideiPutte, Honoring the Girl Scouts' Legislative Page Program.
SR 138 by Lindsay, Commending Laura Fisher of Houston for her selection as a 2003 Prudential Spirit of Community Awards honoree.
HCR 39 (Brimer), Honoring the Everman High School Bulldogs football team on their championship season.
ADJOURNMENT
On motion of Senator Whitmire, the Senate at 2:30ip.m. adjourned until 11:00ia.m. tomorrow.
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