SENATE JOURNAL

SEVENTY-EIGHTH LEGISLATURE — REGULAR SESSION

AUSTIN, TEXAS

PROCEEDINGS

TWENTY-FIRST DAY

(Thursday, February 20, 2003)

The Senate met at 10:00 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, Deuell, Duncan, Ellis, Estes, Fraser, Gallegos, Harris, Hinojosa, Jackson, Janek, Lindsay, Lucio, Madla, Nelson, Ogden, Ratliff, Shapleigh, Staples, Van de Putte, Wentworth, West, Whitmire, Williams, Zaffirini.

Absent-excused:iiCarona, Shapiro.

The President announced that a quorum of the Senate was present.

Senate Doorkeeper Don Long offered the invocation as follows:

Our Father which art in heaven, we implore Your blessing upon this assemblage. We hear this day the voice of David, that great and godly king of ancient Israel, when he said: "It is a good thing to give thanks unto the Lord." (Psalms 92:1)

We come this day to thank You for the blessing You have so graciously bestowed upon each of us. We thank You for our health, our friendships, our families, and our freedoms which we enjoy in this great country. We thank You for the sacrifices these Senators and our Lieutenant Governor have made in order to serve You and the people of Texas: the sacrifices of their personal finances, the sacrifices of their time away from their families while they serve in the office of Senator, the sacrifices of their own personal privacy and having to live a "fishbowl life." Lord, give them graciousness of heart and patience of mind which they need to continue in honorable public service to their constitutents.

And this morning we remember Senator Ratliff's mother-in-law, True Sandlin, in her time of illness. We ask Your healing hand upon her. 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.

LEAVES OF ABSENCE

On motion of Senator Whitmire, Senator Carona was granted leave of absence for today on account of important business.

On motion of Senator Jackson, Senator Shapiro was granted leave of absence for today on account of important business.

CO-AUTHOR OF SENATE BILL 163

On motion of Senator Ellis, Senator Hinojosa will be shown as Co-author of SBi163.

CO-AUTHORS OF SENATE BILL 474

On motion of Senator Lucio, Senators Deuell, Estes, and Lindsay will be shown as Co-authors of SBi474.

CO-AUTHOR OF SENATE BILL 515

On motion of Senator Hinojosa, Senator West will be shown as Co-author of SBi515.

GUEST PRESENTED

Senator Madla was recognized and introduced to the Senate Bexar County Judge Nelson W. Wolff.

The Senate welcomed Judge Wolff.

RESOLUTION SIGNED

The President announced the signing of the following enrolled resolution in the presence of the Senate:iiSCRi16.

GUESTS PRESENTED

Senator Nelson was recognized and introduced to the Senate a delegation of citizens from Leadership Keller.

The Senate welcomed its guests.

GUESTS PRESENTED

Senator Averitt, joined by other Senators participating in the Bullock Scholars program, was recognized and introduced to the Senate Dr. James Curry, Chair of the Political Science Department at Baylor University, and Dr. Thomas Myers and Dr. Joe Brown, political science professors at Baylor University. The following Bullock Scholar interns were then introduced by their respective Senators:iiMelissa Staha by Senator Averitt, Amy Bastian by Senator Ratliff, Jessica Cortez by Senator Lucio, Cody Cofer by Senator Armbrister, Evan Hall by Senator Jackson, Eric Wilson by Senator Staples, and Stephanie Thielen by Senator Nelson. Deidre Douglas in Representative Dunnam's office and Ashton Ellis in Representative Madden's office were introduced by Senator Averitt.

The Senate welcomed its guests.

PHYSICIAN OF THE DAY

Senator Duncan was recognized and presented Dr. J. J. Westenburg of Childress as the Physician of the Day.

The Senate welcomed Dr. Westenburg and thanked him for his participation in the Physician of the Day program sponsored by the Texas Academy of Family Physicians.

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SENATE RESOLUTION 199

Senator Lucio offered the following resolution:

WHEREAS, The Senate of the State of Texas is pleased to pay tribute to Senator Chris Harris on the joyous occasion of his 55th birthday, February 22, 2003; and

WHEREAS, Born February 22, 1948, Chris Harris earned degrees from Texas Christian University and Baylor Law School and is a resident of Arlington; and

WHEREAS, As State Senator for District 9, Senator Harris represents parts of Dallas, Denton, and Tarrant counties, and he brings a wealth of experience to the 78th Legislative Session; he has been a distinguished member of the senate since 1991 after serving for six years in the Texas House of Representatives; he has formerly served on the Senate Health and Human Services Committee and as vice-chair of the Senate Finance Committee and of the Jurisprudence Committee; and

WHEREAS, He is currently chairman of the Administration Committee and a member of the committees on Jurisprudence, State Affairs, and Nominations; and

WHEREAS, Senator Harris is widely known as a resourceful and insightful lawmaker who is respected for his integrity and his dedication to his work; and

WHEREAS, Over the years, he has received numerous well-deserved accolades for his outstanding service to his community and state; he has been honored by the National Child Support Enforcement Association, the Texas Civil Justice League, Future Farmers of America, and the Texas State Troopers Association; and

WHEREAS, Senator Harris is committed to the welfare of the citizens of Texas and represents his constituency with a keen sense of fairness and loyalty; and

WHEREAS, An exemplary gentleman and distinguished statesman, Senator Harris has the highest admiration of the citizens of Texas and his colleagues in the Senate; now, therefore, be it

RESOLVED, That the Senate of the State of Texas, 78th Legislature, hereby extend best wishes to Senator Chris Harris for a joyful 55th birthday; and, be it further

RESOLVED, That a copy of this Resolution be prepared for Senator Harris as an expression of esteem from the Texas Senate.

The resolution was read and was adopted without objection.

SENATE RESOLUTION 179

Senator Fraser offered the following resolution:

WHEREAS, The Senate of the State of Texas is pleased to recognize Dr.iThomasiA. Carlson for saving the life of Don Long, the Texas Senate doorkeeper; and

WHEREAS, On December 17, 2002, Don had a severe heart attack caused by a massive clot in the dominant right coronary artery; he was transported from his home to Seton Medical Center by Austin Emergency Medical Services; and

WHEREAS, Upon Don's arrival at the hospital, Dr. Carlson ordered that he be given the medication Retavase; the Retavase dissolved the clot, permitting blood to again flow through the damaged artery; this quick action resulted in minimal damage to Don's heart muscle; and

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WHEREAS, Within two days, Dr. Carlson performed coronary angioplasty and inserted a stent into the artery; the doctor's sage and prompt action on December 17 saved Don's life; and

WHEREAS, Dr. Thomas A. Carlson, Fellow, American College of Cardiology, is affiliated with Austin Cardiovascular Associates; the group of highly trained specialists is in high demand for its expertise and services; and

WHEREAS, Dr. Carlson graduated from the University of Minnesota Medical School in Minneapolis and completed his residency at the United States Air Force Medical Center at Lackland Air Force Base; he is board certified in internal medicine, cardiovascular disease, and interventional cardiology; and

WHEREAS, He is also a fellow at the Texas Heart Institute, St. Luke's Episcopal Hospital in Houston, and Scripps Clinic and Research Foundation in La Jolla, California; his special interests include acute coronary syndromes, peripheral vascular disease, and intravascular brachytherapy; now, therefore, be it

RESOLVED, That the Senate of the State of Texas, 78th Legislature, hereby commend Dr. Thomas A. Carlson on his exceptional professional accomplishments and extend sincere appreciation to him for saving the life of Senate Doorkeeper Don Long; and, be it further

RESOLVED, That a copy of this Resolution be prepared for Dr. Carlson as an expression of appreciation and esteem from the Texas Senate.

The resolution was read and was adopted without objection.

GUESTS PRESENTED

Senator Fraser was recognized and introduced to the Senate Dr. Thomas A. Carlson of Austin Cardiovascular Associates and Don Long's wife, Johnnie, and his daughters, Donna Duke and Licia Cudle.

The Senate welcomed its guests.

GUESTS PRESENTED

Senator Janek was recognized and introduced to the Senate a delegation from the Leadership 20-20 program in Houston.

The Senate welcomed its guests.

GUESTS PRESENTED

Senator Jackson was recognized and introduced to the Senate a delegation from the Leadership La Porte training group.

The Senate welcomed its guests.

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GUESTS PRESENTED

Senator Lindsay was recognized and introduced to the Senate a delegation of citizens from Leadership North Houston and a group of student ambassadors from the North Harris Montgomery Community College District.

The Senate welcomed its guests.

GUESTS PRESENTED

Senator Ogden was recognized and introduced to the Senate a group of students from the Texas A&M University System Chancellor's Student Advisory Board.

The Senate welcomed its guests.

GUESTS PRESENTED

Senator Lucio was recognized and introduced to the Senate Senator Estes' wife, Jennifer, and his parents, Pete and Willie Mae Estes.

The Senate welcomed its guests.

SENATE BILL 310 WITH HOUSE AMENDMENTS

Senator Fraser called SBi310 from the President's table for consideration of the House amendments to the bill.

The President laid the bill and the House amendments before the Senate.

Floor Amendment No. 3

Amend SB 310 as follows:

(1) On page 3, line 10, insert the following after the comma and before "reasonable":ii"underwriting guidelines,".

(2) On page 3, strike lines 13-14 and substitute the following:ii"(2) actuarial support, including all statistics, data, or other information to support the rates, supplementary rating information, use of credit scoring, and underwriting guidelines used by the insurer;"

(3) On page 3, line 23, insert a new Sec. 3(c)(5) and (c)(6) to read as follows: "(5) a complete explanation, and an electronic copy, of all computer models used by the insurer, including credit scoring and catastrophe models, not protected by a contract with a third party; and

(6) a complete explanation of all changes to underwriting guidelines, rates, and supplementary rating information since January 1, 2000."

Floor Amendment No. 4

Amend SB 310 as follows:

(1) On page 5, line 1, insert the following after the period and before "The": "Information disclosed pursuant to Section 552.008, Government Code, shall be provided in a commonly used electronic format, including in spreadsheet or comma-delimited format, if so requested."

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Floor Amendment No. 7

Amend SB 310 as follows:

(1) On page 3, strike lines 7-8 and substitute "(c) The insurer shall file, in a format specified by the commissioner, including an electronic format:"

(3) On page 3, lines 25-27, strike "the type of information to be included in the filing and"

(4) On page 5, line 18, after the period add "The report may be created based on a sample of the information provided under Sec. 3 of this article."

Floor Amendment No. 8

Amend SB 310 (House committee printing) as follows:

(1) In SECTION 1 of the bill, in Section 3(d) of added Article 5.141, Insurance Code (page 3, line 23), between "(d)" and "The", insert "Each insurer that has a share of the residential property insurance market in this state of 5 percent or more shall file the rating information required under this section."

(2) In SECTION 1 of the bill, in Section 3(d) of added Article 5.141, Insurance Code (page 3, line 23), between "insurers" and "are", insert "that have a share of the residential property insurance market in this state of less than 5 percent".

Floor Amendment No. 9

Amend SB 310 after Section 9, Article 5.141, Insurance Code, as added by the bill (page 6, between lines 18 and 19, House committee printing), by inserting the following:

Sec. 10. EXPIRATION. This article expires December 31, 2003.

Floor Amendment No. 1 on Third Reading

Amend SB 310, on third reading, following SECTION 1 of the bill by inserting the following new SECTION, appropriately numbered, and renumbering subsequent SECTIONS of the bill accordingly:

SECTION____.iiThe expiration of Article 5.141, Insurance Code, as added by this Act, does not affect an action or proceeding against an insurer subject to that law for a failure to comply with that law before its expiration, regardless of when the action or proceeding was commenced, and that law is continued in effect for this purpose.

Floor Amendment No. 2 on Third Reading

Amend SB 310, on third reading, as follows:

(1) In Section 2 of added Article 5.141, Insurance Code, insert new Subdivision (4) to read as follows:

(4) "Security" or "securities" has the meaning assigned by Section 4, The Securities Act (Article 581-4, Vernon's Texas Civil Statutes).

(2) In Section 3(c) of added Article 5.141, Insurance Code, following Subdivision (4) and before the semi-colon, insert Subdivisions (5) and (6) to read as follows:

(5) information on the insurer's losses from investments in securities, whether publicly or privately traded, including investments in the securities of companies required by any oversight agency to restate earnings within the 24 months

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(6) information on the insurer's costs of reinsurance, including costs incurred subsequent to September 11, 2001, possessed and used by the insurer to determine premiums or underwriting for residential property insurance, as this information relates to the rates described by Section 1 of this article

(3) In Section 3(c) of added Article 5.141, Insurance Code, renumber Subdivisions (5) and (6), as added by Amendment No. 3 by Wolens accordingly.

The amendments were read.

Senator Fraser moved to concur in the House amendments to SBi310.

The motion prevailed by the following vote:iiYeasi29, Naysi0.

Absent-excused:iiCarona, Shapiro.

STATEMENT OF LEGISLATIVE INTENT

Senator Fraser submitted the following statement of legislative intent for SBi310:

Under SBi310, the Commissioner of Insurance is authorized to collect and review residential property insurance rates and supporting information necessary to promptly prepare and present a report to the 78th Legislature to inform the legislature as to whether these rates are just, adequate, and reasonable and not excessive or unfairly discriminatory. This report is to assist in the development of a rate regulatory system for residential property insurance in Texas. It is not intended that this bill authorizes the Commissioner to collect information from insurers for purposes other than for reporting to the 78th Legislature. It is the intent that the type of information necessary for the Commissioner's preparation of the report and the manner in which that information is presented by the responding insurers, including any requirements for electronic formatting, will be determined by the prudent exercise of judgment by the Commissioner. It is the intent of this bill to authorize the Commissioner's discretion to determine what insurers are required to file under this bill within the basic guidelines provided in this bill.

FRASER

GUEST PRESENTED

Senator Ellis was recognized and introduced to the Senate Miss America Erika Harold from Urbana, Illinois, who briefly addressed the Senate.

The Senate welcomed Ms. Harold.

SENATE RULES SUSPENDED

(Posting Rules)

On motion of Senator Duncan and by unanimous consent, Senate Rule 11.10(a) and Senate Rule 11.18(a) were suspended in order that the Committee on Jurisprudence might meet and consider the following bills today:

SBi151, SBi164, SBi375.

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RESOLUTIONS OF RECOGNITION

The following resolutions were adopted by the Senate:

Memorial Resolution

SR 209 by Barrientos, In memory of Walt Whitman Rostow of Austin.

Congratulatory Resolution

SR 212 by West, Commending Cassie Choyce on her contributions to Mount Aries Missionary Baptist Church.

ADJOURNMENT

On motion of Senator Whitmire, the Senate at 11:02ia.m. adjourned until 1:30ip.m. Monday, Februaryi24,i2003.

AAAPPENDIXAA

COMMITTEE REPORTS

The following committee reports were received by the Secretary of the Senate in the order listed:

February 20, 2003

INTERGOVERNMENTAL RELATIONS — CSSBi189, CSSBi191

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