MINUTES SENATE COMMITTEE ON NOMINATIONS Monday, February 21, 2005 2:00 p.m. or upon adjournment Capitol Extension, Room E1.016 ***** Pursuant to a notice posted in accordance with Senate Rule 11.18, a public hearing of the Senate Committee on Nominations was held on Monday, February 21, 2005, in the Capitol Extension, Room E1.016, at Austin, Texas. ***** MEMBERS PRESENT: MEMBERS ABSENT: Senator Jon Lindsay None Senator Bob Deuell Senator Gonzalo Barrientos Senator Kevin Eltife Senator Mike Jackson Senator Eddie Lucio, Jr. Senator Jane Nelson ***** The chair called the meeting to order at 2:15 p.m. There being a quorum present, the following business was transacted: The following members arrived after the roll was called: Senator Eltife at 2:16, Senator Jackson at 2:19 and Senator Barrientos at 2:25. Senator Lindsay moved adoption of the minutes from the previous hearing; without objection, it was so ordered. Chairman Lindsay announced to the committee that, because of time constraints, introductions of the appearing nominees by their respective Senators would occur as the Senators were available. Chairman Lindsay recognized Senator Tommy Williams. Senator Williams introduced his constituent, the Honorable Henry Hollis Horton, III, appointed to serve as Justice of the 9th Court of Appeals, Beaumont. Chairman Lindsay recognized Senator Lucio who introduced his constituent, Judge J. Rolando Olvera, appointed to the Texas Lottery Commission (TLC). Chairman Lindsay recognized Senator Kel Seliger. Senator Seliger introduced his constituents Jose Cuevas, nominee to the Texas Alcoholic Beverage Commission (TABC) and Victor Leal, nominee to the Texas Building and Procurement Commission (TBPC). The Chair recognized Senator Florence Shapiro to introduce her constituent Brenda Pejovich, chair of the Texas Building and Procurement Commission. Chairman Lindsay recognized the Honorable H. Hollis Horton and asked him his thoughts on the 9th Court of Appeals. Judge Horton said historically, it has been a three judge court but on January 1st, 2005, it became a four judge court. He also said he understood the talk is to take out Angelina county. Chairman Lindsay asked him if it was logical to put Montgomery county in the 1st or 14th; Judge Horton replied that Montgomery and Jefferson counties were the two largest counties with Montgomery county handling 20-30 percent of the case load, so it would depend upon the case loads. Chairman Lindsay asked if Horton anticipated any problems with the system, Horton answered that the three man panel was randomly drawn out of the four man pool and so far it has worked out well. The Chair recognized Senator Barrientos. Senator Barrientos asked Judge Horton if he was able to travel and Horton replied he had been to Jasper and Montgomery counties since Jan. 1. Senator Barrientos asked if the case load was a problem, Horton said with the addition of this position they should not have to transfer any cases out. Barrientos asked Judge Horton his views on non-partisan elections of judges and Horton replied that partisanship and fundraising were inherent problems and it would be ideal if we did not require partisan elections. Judge Horton also advised the committee that his court would not hear abortion cases since they were under federal jurisdiction and that the vast majority of his appellate cases were criminal. Senator Barrientos questioned him about his stock holdings in Walmart de Mexico and Abercrombie and Fitch to which Horton replied his stock in Walmart de Mexico was the result of a spin-off from Walmart and that he has disposed of the vast majority of his stocks. Chairman Lindsay recognized Senator Nelson who asked Horton about other ways to attract judges to the bench besides increasing their pay. Judge Horton said that legislation to decrease the amount of time consuming reporting of campaign contributions would help. Chairman Lindsay asked for a motion and Senator Nelson moved that a vote be taken. At 2:45 p.m. the committee voted by 7 ayes to 0 nays to recommend Judge Horton be confirmed by the full Senate. Chairmen Lindsay recognized Senator Wentworth. Senator Wentworth introduced John Steen who was reappointed to the Texas Alcoholic Beverage Commission. Chairman Lindsay recognized the Honorable J. Rolando Olvera, a former state district judge and commissioner of the Texas Lottery Commission. The Chair asked Olvera whether he took a position on eight-liners and whether the Lottery Commission could oversee video lottery terminals (VLTs). Judge Olvera replied as commissioner, he was not here to take a position but felt confident that the staff could handle VLTs. He informed the committee that eight-liners were not within the scope of the TLC. Chairman Lindsay recognized Senator Nelson who asked Judge Olvera how he saw the role of a commissioner. Olvera's reply was that he saw their role as not to legislate or advocate, but to regulate. Senator Nelson asked about the cost of regulation. Olvera said the TLC never contracted with the Las Vegas firm for their expertise; Nelson expressed concern that the commission lacked expertise if they were trying to recruit help from Nevada and that she was uncomfortable giving the TLC gaming oversight. The Chair recognized Senator Barrientos who asked about the commission's budget. Olvera said it was around $185 million with the lottery accounting for $183 million and bingo bringing in $2.5 million. Senator Barrientos asked if we should regulate and tax extra-curricular gambling, Olvera answered that most were illegal so we could not legally regulate and tax because of loopholes in the penal code. Senator Barrientos posed a hypothetical question about whether a non-citizen could win the lottery if they could not furnish an address, Olvera said that holding the winning ticket was all that was necessary for someone to prove they won. Judge Olvera added that the bingo industry was suffering because of a 25 year old Bingo Enabling Act that prohibits competition and informed the committee that a legislative act is necessary to change the situation. He mentioned a series of recommendations that the TLC has regarding bingo; Senator Barrientos asked him for a copy of these recommendations. Chairman Lindsay asked if it was difficult to conduct business if they must always meet in an open forum as a three member commission. Judge Olvera said he thought if it ain't broke, don't fix it. Chairman Lindsay recognized witnesses for Judge Olvera who were registered but not testifying. At 3:17 p .m, there being no quorum, no vote was taken on the nomination of Judge Olvera. The Chair recognized the nominees to the Texas Alcoholic Beverage Commission, John Steen and Jose Cuevas and asked them if they had any problems because of the open meeting requirement. Steen said it was difficult because they were always forced to go through staff which was sometimes very unproductive. He added that an executive session was an awkward way to do business. Cuevas said it was difficult, not impossible, to conduct business but added that a five member board would allow them to talk to each other. Chairman Lindsay recognized Senator Barrientos who asked the nominees about the budget. Steen quoted the budget at $30 million with 580 FTEs. Cuevas said they were short by 119 FTEs according to Sunset recommendations. Chairman Lindsay asked for a clarification on whether it would require a legislative act to change the rules on after hours consumption. At 3:35 p. m., there being no quorum, no vote was taken on the nominees to the Texas Alcoholic Beverage Commission. Chairman Lindsay recognized the nominees to the Texas Building and Procurement Commission. He began by introducing Commissioners James Duncan and Victor Leal and recognized Senator Ken Armbrister to introduce Commissioner Betty Reinbeck. Chair Brenda Pejovich had been previously introduced by Senator Shapiro. Chairman Lindsay recognized Senator Barrientos who asked about the budget for TBPC and how well they get along with other agencies. Commissioner Duncan's reply was that the budget was $47.6 million with 375 FTEs and 213 contract employees. He said that not everyone was happy with them because they were in the position as landlord but they were focusing on being a client agency servicer. Senator Barrientos asked Chairwoman Pejovich about HUBs. Pejovich answered saying the contract gave them the access role to administer, audit and report to the state. She informed the committee that the disparity study was funded with emergency appropriations. Commissioner Leal said the commission's charge was always to do better and Commissioner Reinbeck answered that the challenge was to get and keep the best workforce. Senator Barrientos asked about the state funded daycare that was under the watch of the TBPC and that lost $20,000 of parents' money. Pejovich said their advisory committee's proposal for a new provider is due next month. Leal said perhaps they were not the best suited to handle the daycare and suggested another agency might be better equipped. Senator Barrientos asked the panel of nominees to do some research and provide their results in writing to the committee. Chairman Lindsay asked for a motion and Senator Barrientos moved that a vote be taken on all the appearing nominees. At 4:01 p.m. by a vote of 7 ayes to 0 nays, all appearing nominees were passed through for full confirmation by the Senate. Senator Jackson moved to vote on all non-appearing nominees. At 4:04 p. m., all nominees from the following entities were recommended for full confirmation by Senate: Judge of the 224th Judicial District, Presiding Judges from the Sixth, Ninth, First and Fourth Administrative Judicial Regions, the Texas State Board of Dietitians, The State Board of Medical Examiners, District Two Review Committee, the Texas Board of Licensure for Professional Medical Physicists, the State Pension Review Board, the Polygraph Examiners Board, the Texas State Board of Examiners of Psychologists, the Texas Council on Purchasing From People with Disabilities and the Texas State Board of Social Worker Examiners. There being no more business, Chairman Lindsay recessed the committee subject to the call of the chair. __________________________________ ___________________________________ Senator Jon Lindsay, Chair Jazen Wood, Clerk