February 22, 2006 Volume 11, Issue 2      Let the Games Begin!   As you are no doubt aware, early voting for the March 7 primary election started yesterday, and runs through March 3.  As we have received a number of calls from our members regarding the candidates supported by the IBAT PACs, we have determined that an Action Report detailing our activities in various political races would be appropriate.   For background purposes, we generally support “friendly incumbents” where there has been a record of support for community banking issues.  Additionally, in open seat races, it is our practice to survey the IBAT member bankers in those particular districts seeking input regarding the candidates they are supporting.  In those districts where there is no consensus or a clear divergence of opinion, we generally will opt not to support a candidate.  If there is indeed a clear choice, we will make a PAC contribution with pre-approval of the IBAT PAC Steering Committee.   In addition to the surveys sent to the respective districts, the last IBAT Action Report sought feedback from the membership on any and all of the races to allow everyone the opportunity to voice their opinion in this important process.   We will obviously focus on contested and open seat races at this juncture.   Statewide   The IBAT PAC has supported financially, and the IBAT Board/Executive Committee has endorsed the following candidates for statewide office: Kay Bailey Hutchison, U.S. Senator Rick Perry, Governor David Dewhurst, Lt. Governor Greg Abbott, Attorney General Susan Combs, Comptroller Todd Staples, Agriculture Commissioner Don Willett, Supreme Court Place 2 United States Congress   In dramatic contrast to the Congressional elections last cycle subsequent to redistricting, all of the sitting Texas members are running for reelection.  While the IBAT FedPAC has not made contributions in every district, we have in every instance supported the incumbent in these races.   Texas Senate   As terms in the Texas Senate are for four years, there are 16 seats in play this cycle.  Two incumbent Senators are considered to have serious primary challenges.  In District 2, Senator Bob Deuell is being challenged by Tim McCallum.  In District 19, Representative Carlos Uresti is challenging Senator Frank Madla.  The IBAT PAC has supported Senators Deuell and Madla in these contested primary races.   There are four open seats in play.  Former Austin mayor Kirk Watson has only token Libertarian opposition to replace retiring Austin Senator Barrientos, and is supported by the IBAT PAC and endorsed by the IBAT Board.  Additionally, we have contributed to and endorsed the candidacy of State Representative Glenn Hegar to replace retiring Senator Ken Armbrister in SD 18.    Due to widely varying positions and opinions of our membership in both Senate District 3 and 7, we have opted not to support a candidate at this time.   House of Representatives   There are a number of seats “in play” this election cycle.  Fourteen incumbents have opted not to return for various reasons.  We have taken a position in the following races, again based upon feedback and input from IBAT members in the various districts: District 16 – Brandon Creighton District 28 - David Melanson (Note:  David is Vice Chairman and CFO of Commercial State Bank in El Campo!) District 38 – Eddie Lucio III District 48 – Ben Bentzin (Note:  Bentzin was defeated by Donna Howard in a special election on February 14) District 54 – Jimmie Don Aycock District 71 – Kevin Christian and Rob Beckham District 85 – Jim Landtroop District 106 – Kirk England (Note:  There is a special election on February 28 to fill the vacancy created by the resignation of Representative Ray Allen) District 126 – Patricia Harless   Like the Senate races in which we opted not to take a position, there are several races in which there was substantial disagreement over the appropriate candidate to support.  We, in those cases, have opted to defer action.    There are also a number of incumbents facing primary challenges – some more serious than others.  What follows is a list of those incumbents supported by the IBAT PAC in their races: District 2 – Dan Flynn District 9 – Roy Blake, Jr. District 10 – Jim Pitts District 39 – Armando Martinez District 52 – Mike Krusee District 62 – Larry Phillips District 72 – Scott Campbell District 73 – Carter Casteel District 76 – Norma Chavez District 78 – Pat Haggerty District 79 – Joe Pickett District 87 – David Swinford District 94 – Kent Grusendorf District 99 – Charlie Geren District 101 – Elvira Reyna District 109 – Helen Giddings District 110 – Jesse Jones District 112 – Fred Hill District 127 – Joe Crabb District 140 – Kevin Bailey As always, please feel free to contact us if you have any questions, comments or observations.  And . . . please vote!   HB 914/Disclosure   We have heard a number of concerns regarding HB 914, which has created some significant issues in the public funds arena.  Karen Neeley prepared a Special Compliance Bulletin explaining this issue.   We prepared a letter earlier this month which was signed by the other insured depository trade groups to the author, Representative Beverly Woolley and the Senate sponsor, Tommy Williams.  This group, including TBA, Texas Savings and Community Bankers and the Texas Credit Union League, will be meeting with Mrs. Woolley’s staff to discuss a legislative fix to this unfortunate dilemma.  In the meantime, Representative Woolley has sent a request to the Attorney General asking for clarification on a number of issues raised in the letter.   We sincerely appreciate the cooperation and willingness to address these issues reflected by Chairman Woolley and her Chief of Staff, Tessa Zavala.  We will keep you updated as we move forward toward solutions on this issue.

To e-mail Steve Scurlock: sscurlock@ibat.org or Karen Neeley: kneeley@ibat.org
The e-mail account from which the email version of the Action Report is sent is for outgoing e-mail only and is not monitored.

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is provided with the understanding that the publisher is not engaged in the rendering of legal, accounting or other professional service or advice for specific companies or financial institutions. If legal advice or other expert assistance is required, the services of a competent professional person should be sought - from a Declaration of Principals adopted by the American Bar Association and a Committee of Publishers and Associations.

Copyright: Independent Bankers Association of Texas, 1700 Rio Grande Street, Suite 100, Austin, Texas 78701. 2003. Phone 512/474-6889; fax 512/322.9004.
All rights reserved.