MINUTES 
                                           
                            SENATE COMMITTEE ON FINANCE 
          Subcommittee on Subcommittee on Health and Human Service Demand 
                              Friday, February 8, 2002 
                                     9:00 a.m. 
                           Capitol Extension, Room E1.036 
                                           
                                       ***** 
                                           
         Pursuant to a notice posted in accordance with Senate Rule  
         11.18, a public hearing of the Senate Committee on Finance was  
         held on Friday, February 8, 2002, in the Capitol Extension, Room  
         E1.036, at Austin, Texas. 
          
                                       ***** 
                                           
         MEMBERS PRESENT:                        MEMBERS ABSENT: 
         Senator Judith Zaffirini, Chair         Senator Jon Lindsay 
         Senator Chris Harris                    Senator John Whitmire 
         Senator Robert Duncan                    
         Senator Eddie Lucio, Jr.                 
          
                                       ***** 
                                           
         Senator Judith Zaffirini, the acting chair, called the meeting  
         to order at 9:00 a.m.  The following business was transacted:  
          
         Chair Zaffirini made opening remarks and recognized all  
         subcommittee members and their staff.  The chair then reviewed  
         the interim charge issued by Lt. Governor Ratliff. 
          
         The chair addressed the tentative schedule for the subcommittee  
         on Health and Human Services and welcomed Representative  
         Patricia Gray.  Representative Kyle Janek was also present  
         during a portion of the hearing. 
          
         A quorum was established at 9:35 a.m.  At that time, the chair  
         laid out the proposed rules for the subcommittee.  Senator  
         Duncan moved that the subcommittee rules be adopted and the  
         rules were adopted by unanimous consent.  The tentative interim  
         schedule was reviewed. 
          
         The Chair called invited witnesses to brief the subcommittee  
         members about rate increases and rate-setting procedures. 
          
         The following persons provided oral testimony: 
          
              Kelly Furgason, team manager, Legislative Budget Board,  
              P.O. Box 12666, Austin, Texas 78711-2666. 
          
              Paul Priest, analyst, Legislative Budget Board, P.O. Box  
              12666, Austin, Texas 78711-2666. 
          
              Don Gilbert, commissioner, Health and Human Service  
              Commission, 4900 North Lamar, 4th Floor, Austin, Texas  
              78711-3247. 
          
              Richard Hoffman, board chair, Texas Department of  
              Protective and Regulatory Services, 701 West 51st Street,  
              P.O. Box 149030, Austin, Texas 78714-9030. 
          
              Thomas Chapman, executive director, Texas Department of  
              Protective and Regulatory Services, 701 West 51st Street,  
              P.O. Box 149030, Austin, Texas 78714-9030. 
          
         With no other business to come before the subcommittee, Senator  
         Zaffirini recessed the subcommittee by unanimous consent at  
         11:55 a.m., subject to the call of the chair. 
          
         There being no further business, at 11:55 a.m. Senator Zaffirini  
         moved that the Committee stand recessed subject to the call of  
         the chair.  Without objection, it was so ordered.   
          
         ______________________ 
         Senator Judith Zaffirini, Chair 
          
         ______________________ 
         Amber Martin, Clerk