Government: April 2006 to June 2006

Attorney General Abbott sues owner of fraudulent auto auction

Owner Eric Shalev allegedly retains fees wrongly assessed to bidders

From the Office of Greg Abbott, Attorney General of Texas

June 29, 2006

AUSTIN –Texas Attorney General Greg Abbott June 21 announced an asset freeze and temporary restraining order against the owner of a Houston auto auction, seeking an accounting for millions of dollars in fees fraudulently assessed against those who participated in auctions to purchase vehicles.

Arie (Eric) Shalev’s auction at 8335 North Freeway uses several business names, including A&R Distributors Inc., E.S. Auto Sales Inc., Best Buy Motors Inc., Giant Mart Inc. and Golden Aribah Investments, L.L.C.

“Our investigators secured this asset freeze because we had reason to believe this individual would likely abscond with money owed to numerous consumers,” said Attorney General Abbott. “The defendant’s mode of operation is to skim lots of cash up front and impose a strict no-refund policy. This kind of operation cannot be tolerated.”

Shalev required auction participants to pay a $10 entry fee, and what he described as a refundable $200 deposit before bidding on a vehicle. If a bid was accepted, Shalev represented that this money would be applied to the total cost of the vehicle. Consumers, many of whom spoke little or no English, were hurried into signing a “terms and conditions” form after paying deposits. This instrument, written in English, supposedly set the ground rules for the auction, but in reality it set a trap enabling Shalev to withhold much more money from consumers.

A consumer who won a bid would be required to pay up to 50 percent down in cash the first day, then Shalev or his staff insisted the consumer return the next day to pay in full. When a consumer asked about the balance owed, Shalev or his employees would give vague answers or tell the consumer they should discuss it the following day.

Upon returning to pay in full, the consumer would often find he or she owed much more money than expected, and Shalev also assessed several fees that were not previously disclosed. When customers became irate or refuse to pay, Shalev would summon his “security detail” to the site to escort them away, resulting in the loss of all money paid up front. Those who did pay the exorbitant prices and fees sometimes discovered that the vehicles they purchased were not even in working condition, as promised, and should not have been auctioned. Shalev also often shredded consumers’ paperwork, sometimes in their presence, to evade records of sales.

The Attorney General’s investigation into Shalev’s bank accounts indicates he only accepts cash or cashier’s checks and his profits have soared into the millions of dollars. The lawsuit requests that penalties be assessed against Shalev and his businesses of up to $20,000 per violation of the Texas Deceptive Trade Practices Act. The suit also asks that Shalev relinquish all funds wrongly taken from consumers and that restitution be ordered.

Consumers who believe they may have been defrauded by such businesses may file a complaint with the Attorney General by calling (800) 252-8011 or file complaints online at www.oag.state.tx.us

Attorney General Abbott sues owner of fraudulent auto auction

Older News - June

Gov. Perry Hosts Houston Small Business Summit

June 29, 2006

HOUSTON–Gov. Rick Perry hosted a small business summit in Houston June 20 aimed at providing area small businesses with the tools and knowledge for future success. Perry has held a series of summits around the state in support of small business.

“While we are here to talk about how to make our small businesses prosper, foremost on our minds right now is the safety and security of the people of Southeast Texas,” Perry said. “We want to continue to urge Texans to be cautious and to avoid low-lying flood-prone areas, recognizing that flood conditions can materialize in a matter of minutes.”

Perry thanked summit organizers and participants for the important role they play in the Texas economy.

“Texas prospers only when small business prospers. If Texas is to remain a place where jobs and opportunity are abundant, where the American dream is within reach for every family, and where government priorities are funded by a growing economy instead of a growing tax burden, then one of our greatest goals must be to help small employers succeed today,” Perry said.

Perry encouraged local small business owners to take advantage of opportunities presented at the summit, which offered advice on securing growth capital, utilizing health savings accounts, becoming certified as a Historically Underutilized Business and numerous other topics.

Perry also pointed out that representatives from 26 state agencies were present to help Houston-area businesses learn how to effectively bid for government contracts. “Whether it is for printing, construction, technical support or a wide variety of other opportunities, state contracts can add millions of new dollars to the local economy and serve as the catalyst that propels your business to new level of success,” Perry said.

Perry added that the school finance package passed by the Legislature – which cuts property taxes by 33 percent – is good for small businesses. “Small business was foremost on our minds as we implemented tax reform last month. That’s why we doubled the size of the small business exemption from $150,000 to $300,000 in gross receipts. Because of this change, a number of additional small businesses will pay nothing in taxes as they get their feet on the ground and grow,” Perry said.

The governor added that businesses that owe as much as $1,000 under the reformed business tax will not be charged a cent. And every time a business paying under the tax hires a new worker, invests in health insurance or funds worker pension plans, that business’s tax liability decreases.

“The possibilities for prosperity are endless if employers are not over-regulated and over-taxed. This is especially true for the small business that operates on a small margin,” Perry said. “Small business is vitally important to me, not just because I helped my dad run one, but because they represent the best of Main Street America. They are the incubator where ideas are tested, refined and perfected so that families can experience opportunity.”

Perry - Gov. Perry Hosts Houston Small Business Summit

Attorney General Abbott shuts down real estate scam targeting Hispanic home buyers

Galindo Trust sold homes without disclosing liens; many consumers faced foreclosure

From the Office of Greg Abbott, Attorney General of Texas

June 23, 2006

AUSTIN – Attorney General Greg Abbott has obtained an emergency restraining order and asset freeze against an Austin business that systematically targeted Hispanic consumers by selling them homes without making important disclosures, including failing to reveal pre-existing liens.

Defendants Roberto Flores, real estate broker Richard Allen Small, Jr. and their company, Galindo Trust, are also accused of misrepresenting to consumers that tax and insurance payments were being made on their behalf, when in fact the defendants pocketed many of these funds. As a result of their scheme, numerous houses were placed in jeopardy of being foreclosed upon even though consumers had been diligent in making monthly payments. The homes are located on Galindo Street in east Austin.

“Homes are far and away the most important investment consumers make in their lifetimes,” said Attorney General Abbott. “It is unconscionable that unscrupulous businesses would line their pockets while causing consumers’ lifelong dreams of home ownership to degenerate into nightmares. I will take all necessary measures to hold these scam artists accountable and make certain they face the justice they deserve.”

According to the lawsuit filed under the Deceptive Trade Practices Act (DTPA), Flores allegedly told consumers that he was the “free and clear” owner of the homes he sold, but Galindo Trust was in fact still making payments on the same homes, which Flores and Small acquired in a mass purchase from Shriner’s Hospital. The lawsuit alleges that Flores never disclosed the pre-existing liens to most of the buyers. Shriner’s was not aware of the scam and is not a target of the Attorney General’s legal action.

The lawsuit also alleges Flores often told victims that the monthly payments included homeowners’ insurance premiums and property taxes. However, consumers eventually discovered that the defendants discontinued payments to insurers and the tax appraisal district, causing insurance policies to lapse and consumers to become delinquent on their property taxes. Furthermore, Flores assured consumers that payments for their homes would never change, but in fact payments increased as property taxes rose.

When some consumers who financed through Galindo Trust tried to sell their homes, they were unable to do so because of Shriner’s pre-existing lien on the properties. Only then did consumers learn that someone other than Flores had a legal claim on their homes.

Consumers’ problems grew when in 2004 the defendants ceased making payments to Shriner’s Hospital and instead pocketed the monthly payments consumers made to them, putting the homes at risk of foreclosure. Shriner’s is currently working individually with consumers to determine if they can be given title to their properties.

Galindo Trust operates primarily from an address at 307 East Croslin in Austin.

A court hearing to consider issuing a temporary injunction against the defendants is scheduled to take place in Travis County on Thursday, June 15, at which time the Office of the Attorney General will ask the court to uphold the terms of the emergency restraining order and asset freeze until a permanent final order is issued following trial.

Attorney General Abbott offers consumers the following tips when buying a home:

• Take your time. Be wary of sellers who pressure you to make an immediate decision to buy or sign documents.

• Review all documents very carefully before signing; take them to a trusted independent person, such as an attorney, to help you review the terms if there is something you don’t understand.

• Make sure a title search company is involved in the transaction to determine who the owner of the property is and whether there are liens or outstanding debts for which you could be held liable.

• Never make payments in cash. Use checks or money orders.

• If monthly payments to the seller or financing institution include homeowners’ insurance and property taxes, check periodically with your county tax assessor and with the insurance company to ensure that the accounts are current.

Consumers who believe they have been deceived in the purchase of real estate should report it to the Office of the Attorney General by calling 1-800-252-8011 or by filing a complaint online at www.oag.state.tx.us.

Abbott gets restraining order against Galindo Trust to halt real estate scam which targeted Hispanics

Final passage of bill to fund Texas hurricane recovery, border security, defense needs

Emergency supplemental funding bill now moves to President for signature

From the Office of Senator John Cornyn

June 23, 2006

WASHINGTON—U.S. Sen. John Cornyn made the following statement June 15 regarding final passage of the Emergency Supplemental funding bill, H.R. 4939, that will provide funding for Texas hurricane recovery efforts, border security and national defense needs. The bill passed by a vote of 98-1 and now goes to President Bush to be signed into law:

“With final passage of this bill, and President Bush’s signature, we’ll send critical funding to support our troops in battle, help get Texas back on its feet after the hurricanes, and bolster border security. And I’m encouraged that Congress was able to keep the bill at the overall spending limit of $94.5 billion set by the President.

“This bill will help ensure that our military facilities in Texas have the funding they need to operate in support of our troops. We must always provide our troops with the necessary resources to win the war on terror, and this bill helps do that.

“When it comes to hurricane recovery efforts, Sen. Kay Bailey Hutchison and I fought very hard both on the Senate floor and through her service on the Conference Committee to make sure Texas was treated fairly. But more remains to be done. There are more federal resources coming to the state and the Texas delegation will continue working hard to make sure our state is not forgotten.

“In addition to other funding in this bill, I spoke with the Secretary of Housing and Urban Development, Alphonso Jackson, on the phone this week. He assured me that Texas will receive equitable treatment when HUD distributes the $1 billion in unallocated Community Development Block Grants (CDBG) in the supplemental. Secretary Jackson recognized that Texas suffered a significant amount of damage and loss during the storms and that we deserve a fair shake.”

Congress provided $11.5 billion in CDBG funds for hurricane relief last year. But only $74.5 million of those CDBG funds, or less than one percent, was allocated to Texas. In May, Cornyn introduced an amendment that was accepted to the Senate version of the supplemental bill to substantially increase CDBG funding for Texas.

The CDBG program is a flexible funding source that provides communities with assistance to address a wide range of unique community development needs.

Sen. Cornyn is a member of the following Senate Committees: Armed Services; Judiciary; Budget; Small Business and Entrepreneurship; and Joint Economic. He is also the chairman of the subcommittees on Immigration, Border Security and Citizenship and Emerging Threats and Capabilities.

Cornyn and Hutchinson help get bill passed to provide hurricane recovery funding, border security and national defense

Attorney General Abbott files second ‘friend of court’ brief supporting Pledge of Allegiance

Texas, 49 states urge 9th Circuit Court to recognize role of Pledge in our heritage

From the Office of Greg Abbott, Attorney General of Texas

June 15, 2006

AUSTIN – Texas Attorney General Greg Abbott June 9 filed a “friend of court” brief with the U.S. Court of Appeals for the 9th Circuit in California on behalf of all 50 state attorneys general, urging the justices to uphold the Pledge of Allegiance as a constitutional reflection of our national heritage.

“School children across this country have begun their day reciting ‘one nation, under God, indivisible, with liberty and justice for all,’ which is a clear and constitutional recognition of our foundation as a great nation,” said Attorney General Abbott.

Attorney General Abbott supports Pledge of Allegiance

Cornyn calls for immediate repeal of death tax

Says unfair tax hurts Texas farmers, ranchers and family-owned businesses; Senate vote expected Thursday morning

From the Office of Senator John Cornyn

June 15, 2006

WASHINGTON—U.S. Sen. John Cornyn (R-Texas), a member of the Small Business, Budget and Joint Economic Committees, on June 7 called for an immediate repeal to the death tax. The Senate is currently debating The Death Tax Repeal Permanency bill, H.R. 8, with a vote on whether to proceed to final passage expected Thursday morning.

Excerpts from remarks delivered on the Senate floor by Sen. Cornyn include:

“There are those who say this is just to benefit the rich and wealthy. That ignores the reality on the ground. The death tax brings the hammer down on Texas farmers and ranchers whose most valuable asset is their land. To pay this double tax, farmers and ranchers are threatened with the prospect of selling just to pay their tax.

“Not only does the death tax discourage small businesses and farmers and ranchers from saving, it also hinders their ability to operate from generation to generation. The current death tax burden especially makes it progressively more difficult for each succeeding generation to keep an agricultural operation going. The death tax reduces the inheritance available to heirs, again discouraging people from working, saving, and investing.

“Dying should not be a further burdensome, expensive, and complicated event because of the death tax. Right now, it is.

“Because of the President’s leadership and the leadership of this Congress in passing important tax relief, we were able to put money back in the pockets of ordinary Americans so that they could then invest and help grow the economy that has benefited us all. Let us not get in the way of that important progress by failing to take the necessary action to end the death tax once and for all.”

Cornyn calls for immediate repeal of death tax

League City Area News: A Hurricane's Coming - Could it happen tomorrow?

Weather forecasters at the National Hurricane Center predict four to six major hurricanes

June 15, 2006

The 2006 hurricane season is expected to be quite active, said government officials at a May 22 news conference at the National Hurricane Center. The hurricane season is from June 1 through Nov. 30 and is usually most active from August through October.

"For the 2006 north Atlantic hurricane season, NOAA is predicting 13 to 16 named storms, with eight to 10 becoming hurricanes, of which four to six could become 'major' hurricanes of Category 3 strength or higher," said retired Navy Vice Adm. Conrad C. Lautenbacher, Ph.D., undersecretary of commerce for oceans and atmosphere and NOAA administrator.

Eleven named storms, including six hurricanes, two of which will become major hurricanes of at least category 3 strength develop in the North Atlantic in an average year.

The 2005 Atlantic hurricane season was a record breaker with 28 named storms, including 15 hurricanes.

"Whether we face an active hurricane season, like this year, or a below-normal season, the crucial message for every person is the same: prepare, prepare, prepare," said Max Mayfield, director of the NOAA National Hurricane Center. "One hurricane hitting where you live is enough to make it a bad season."

Photo credit: Courtesy of NOAA National Hurricane Center

A Hurricane's Coming - Could it happen tomorrow? Part 1. Evacuation help is available at 2-1-1 for residents and their pets

Hurricane Help by Marilyn Clark, League City Area News Online

June 15, 2006

If you are disabled, don't drive, your car breaks down at the last minute, your mechanic warns that the car you are driving can not handle gridlock traffic or a long distance dash to safety, get on the phone and call family, friends, and neighbors.

If these people are unable to help, 2-1-1 operators are now available to answer your evacuation questions and help you register for transportation to higher ground. Pets will be evacuated also.

“In Texas, where your dog is as prized a possession as your pick-up truck, it should come as no surprise that many Texans chose to ride out the storm rather than separate from their pets, Gov. Perry said.

“Our 2-1-1 operators have been specially trained and are ready to assist those who need to arrange for transportation to get to safety when a storm threatens the Texas coast,” Gov. Perry said.

Request evacuation help as soon as possible. Let the operator know how many pets you have and if they have special needs.

Government officials need time to develop evacuation routes; obtain busses, vans, and ambulances; assign drivers; and find shelter for people with a variety of special needs.

Even if a last minute need arises, please call because the state and city and town officials are "Going all out" to see that no one is left behind when storm clouds threaten.

Residents of the City of Houston can obtain registration forms from home service providers such as Meals on Wheels and the Houston Health Department. Houston residents can also register at the Web site of the Office of Emergency Management - www.houstontx.gov/oem .

The Houston Office of Emergency Management will also mail forms to residents on request. These should be returned to the Houston Office of Emergency Management, 5320 N. Shepherd, Houston, Texas 77091 as soon as possible. If you move, your form will be forwarded to the department in the city that will be handling your evacuation.

Call 2-1-1 or the Houston Office of Emergency Management (713) 884-4500 if you have questions such as whether or not you are in an evacuation zone.

Also, let the 2-1-1 operator or the Houston OEM know of any changes as soon as possible such as a new address, phone number or if you no longer need assistance and update your information each year.

Houston Emergency Management
5320 N. Shepherd
Houston, Texas 77091
713 884-4500
TTY 713 884-4518
Web site: http://www.houstontx.gov/oem

A Hurricane's Coming - Could it happen tomorrow? Part 2. Area stores have a variety of hurricane supplies

As a tropical storm or hurricane approaches, supplies like batteries go fast and the lines are often long.

June 15, 2006

New items and the old standbys are in stock at a number of locations.

Flashlights

Regular battery-powered flashlights, replacement bulbs and batteries are available in many stores.

Alkaline batteries can be stored in an air conditioned room and maintain reasonable shelf life. For temperatures in the 90s, consider storing them in a dry, airtight container in the refrigerator. In contrast, nickel metal hydride batteries hold their charge significantly better when stored in a dry, airtight container in the refrigerator.

If you would like to try one of the battery-free flashlights, Wal-Mart and Bed, Bath & Beyond have the self-charging Faraday flashlights that you can charge by shaking. Wal-Mart got a special order in where the manufacturer has thrown in a small Faraday flashlight for free.

Lowe's carries a self-charging flashlight that also serves as a road-side emergency flasher. This flashlight at Lowe's is powered by turning a hand crank instead of being shaken.

Radios

A battery powered radio is recommended by the National Hurricane Center. A battery-free, hand-crank radio is available at Bed, Bath & Beyond and Lowe's.

The May 2005 brochure, Texas Hurricanes: Tips for the Galveston Study Area reports that these radios can be used to listen to weather forecasts on emergency radio stations KTRH 740 AM and KPRC 950 AM. NOAA Weather Radio is available at 162.550 megahertz KHB40 and 162.400 megahertz KGG68 on radios with weather bands.

Home power generators

Some people have decided they want the power and are buying generators available at home supply stores such as Kilgore's, Home Depot and Lowe's to run refrigerators, freezers and perhaps an air conditioner.

Battery-powered fans

Others are buying one of the battery-powered fans available at Wal-Mart, Home Depot and Bed Bath & Beyond.

Coolers

The ultratherm coolers such as the MAXCOLD by Igloo are great for storing ice. All of the MAXCOLD coolers in the Igloo product line will keep ice for five days when external temperatures are as high as 90 degrees said Jamie, a technical service representative for Igloo. Coleman and Rubbermaid manufacture similar products.

Some hurricane veterans recommend using a 5-day cooler to store ice and another cooler to store other cold items.

Stores are also selling refrigerated coolers that plug into a cigarette lighter. I looked at a display model by Coleman that even had an AC adapter. It can be used upright or turned on its side and run as a chest refrigerator. It was priced at about $75.00 at Wal-Mart.

A Hurricane's Coming - Could it happen tomorrow? Part 3. Post Rita, Thoughts on last minute evacuation tasks

After a hurricane watch is announced, a hurricane can arrive in 24 to 36 hours - Not much time to get gas, money, food, batteries and prepare one's household for evacuation.

Hurricane Help by Marilyn Clark, League City Area News Online

June 15, 2006

Hurricane Rita, it happened to me; did it happen to you?

Bay Area residents have "so many tasks, so little time" when hurricane evacuation orders are given.

Some residents will rush to fill-up or top-off their gas tanks and get some cash, including some small bills, in case retailers later lose their power and with it the ability to run credit cards and credit checks.

Other residents will be rushing to add last minute items to their hurricane evacuation kit.

While still other residents will be packing sandwiches and other snack food, like granola bars, and drinks to help limit food stops.

When you leave your residence, unplug small appliances, such as radios, televisions, toasters and microwaves, FEMA officials recommend. Set freezers and refrigerators to the coldest setting and leave them plugged-in unless there is a risk of flooding. Close and lock doors and windows.

If you are a girl or are disabled, plan now how you will meet your bathroom needs if facilities are not available or if lines are too long. What supplies will you need?

For, many of the gas stations along evacuation routes for Hurricane Rita were either closed or had unbelievably long lines.

We've been promised open stations, lots of gas and early creation of contra-flow lanes for 2006. Hopefully, the new evacuation plans will fall into place smoothly.

“For seven months, we have worked diligently to learn from the challenges of last year’s hurricanes, and we have made remarkable progress in our preparedness,” Gov. Perry said in May. “With systems to better assist Texans with special needs, new traffic management and fuel plans, and private sectors partners to oversee the distribution of food, water, ice and fuel, I believe Texas is a model in preparedness for other states.”

A Hurricane's Coming - Could it happen tomorrow? Part 4. OK, OK, I'm leaving. What do I take with me?

Hurricane Help by Marilyn Clark, League City Area News Online

June 15, 2006

The experts advise completing hurricane evacuation kits now so that residents can "Grab and go" when a major storm threatens.

"Preparation is the key message that President Bush wants to convey during National Hurricane Preparedness Week. The impact from these storms extends well beyond coastal areas so it is vital that residents in hurricane prone areas get ready in advance of the hurricane season," said David A. Sampson, deputy secretary of commerce at the National Hurricane Center May 22.

Recommended items for a hurricane evacuation kit include

• Seasonal supplies such as insect repellant and sunscreen

-- Replace sunscreen more than a year old.

• A waterproof first aid kit, medical supplies, including a spare pair or glasses or current prescription, prescription medicine for at least two weeks, and a list of prescription medicines and their numbers. If your prescription is with a national chain of stores, take any required documentation such as your driver's license or other form of identification.

• Copies of important documents such as insurance policies, social security card, medical records, and possibly birth certificates should be carried in a watertight container. You may wish to include a copy of a utility bill and its postmarked envelope as proof residency.

• The phone numbers of your doctor, friends, relatives and your evacuation destination.

• Keepsakes, including pictures, scrapbook and heirlooms

• Maps

• Tools

• Flashlight, spare bulbs and extra batteries

• Battery-powered or hand-crank radio and extra batteries

• Rain gear, sturdy shoes and a change of clothing

• Bedding - blankets, pillow and sleeping bag

• Toiletries, such as toothbrush, toothpaste, deodorant, comb or brush, dental floss, razor, soap, lipstick and feminine hygiene items

• Baby supplies

• Pet supplies, including medications, immunization record, carrier, leash, muzzle, food and water

• Container for carrying gas

• Child supplies, including games, toys and books

Meal Preparation

• Alcohol-based hand sanitizer

• Manual can opener

• Paper plates and cups and plastic utensils

• Charcoal or gas grill and supply of fuel for cooking outdoors only
  -- matches or lighter in waterproof container

Food and water

• Up to 7 days of food and water per person depending on your location and the severity of the expected storm

• One gallon per day per person, more for adding to powdered beverages

• Drinking water can be store in plastic containers meant for food such as 2-liter or smaller soft drink bottles with screw caps.

• Prepared food such as canned soup, chili and other beef products, tuna, and packaged fruit and pudding snacks.

• Cereal, bread, peanut butter and other spreads.

• Fresh vegetables may last for several days
  -- Some raw vegetables such as carrots keep better at room temperature than others.

• Fresh fruit
  -- apples do well at room temperature

• Bottled, canned or powdered juice

• Canned or powdered milk

• Instant coffee or tea

If you will be staying at home,

• A large trash can or a bath tub may be used to hold water for flushing the toilet.

• The bathtub can hold drinking water that is disinfected with fragrance free bleach wrote Jan Norris in the PalmBeachPost.com .
  -- Add a teaspoon of bleach per gallon of water, mix then wait 30 minutes. Repeat if needed until the water smells slightly chlorinated.

• Plastic or canvas tarps can be used to cover furniture and other items to protect them from water damage, for temporary roof repair and tents.

To prepare a kitchen for a tropical storm, you may wish to

• Unplug small appliances.

• Set your refrigerator and/or freezer to the maximum cold setting

• Protect canned food, and kitchen utensils, as well as other household items such as clothing, if flooding is expected by putting them in a higher location and/or put them in waterproof containers.

  -- Contractor quality plastic garbage bags or plastic garbage cans may be used. Contractor bags are about three mils thick. They can also be split open at the edges and duct taped together to form an emergency tarp. Contractor bags can be found at Wal-Mart and home supply stores such as Home Depot and Lowe's.

• The tops of food cans may be labeled with waterproof markers in case the labels come off due to high humidity or water.

Dry Ice

• Dry ice can be placed in the bottom of an ultratherm 5 day cooler to keep frozen foods cold and hopefully frozen. Avoid direct contact between the food and the dry ice to prevent freezer burn.
  Also do not touch the dry ice directly and avoid breathing the CO2 released as the dry ice is converted from a solid to a gas. Protect children from the dry ice vapor by keeping them away from the stored dry ice.

• If you put dry ice directly into a working freezer, the freezer will usually turn itself off the food after the temperature falls below a preset level wrote Kenneth Ackerman, who has been answering the public's dry ice questions for almost 30 years as part of his job managing an ice company.

• Dry ice can be used to keep frozen food frozen for about a week in a cooler, reported the PalmBeachPost.com in its May 29, 2005 issue. Ten pounds will only last a day or two so you may need to get a large block.

• If power is lost, use 25 pounds of dry ice per ten cubic feet of freezer space to keep food frozen for three to four days (Are you ready? An in-depth guide to citizen preparedness?, FEMA, IS-22, August 2004).

Dry ice in our area cost as little as 99¢ a pound in June and is available at

• Kroger #344
  200 Gulf Freeway South
  League City, TX 77573
  Phone: (281) 332-5555
  $1.19 a pound

• South Shore Randalls #2051
  2951 Marina Bay Dr #8,
  League City, TX 77573
  Phone: (281) 538-2500
  99¢ a pound

• H.E.B. #572
  16811 El Camino Real,
  Houston, TX 77058
  Phone: (281) 488-1601
  $1.09 a pound

For more hurricane preparation information contact:

Galveston County Office of Emergency Management
http://www.gcoem.org/
(281)309-5002

City of Houston's Office of Emergency Management
http://www.houstontx.gov/oem
(713) 884-4500

Data Sources for the series include:
City of Houston's Office of Emergency Management
http://www.houstontx.gov/oem
(713) 884-4500br> including the Shelter Packing List for the Evacuation Registration 2006 Form

Galveston County Office of Emergency Management
http://www.gcoem.org/
(281)309-5002

National Oceanic and Atmospheric Administration's National Hurricane Center, including Hurricane Preparedness: Disaster Supply Kit.

PalmBeachPost.com at www.palmbeachpost.com .

Texas Hurricanes: Tips for the Galveston Study Area, May 2005.

U.S. Department of Homeland Security/Federal Emergency Management Agency, including Are you ready? An in-depth guide to citizen preparedness?, FEMA, IS-22, August 2004.

File reports

Attorney General Abbott wins state’s first spam case

Ryan Pitylak, partners and e-mail-related businesses to pay $10 million in penalties

From the Office of Greg Abbott, Attorney General of Texas

June 10, 2006

AUSTIN – Texas Attorney General Greg Abbott June 7 announced a final judgment totaling more than $10 million in civil penalties and attorneys’ fees paid by one of the largest and most notorious e-mail “spammers” in the world, which has resulted in shutting down the operation. The case was filed in federal court in January 2005 against a former University of Texas student and others.

The former student, Ryan Pitylak, and partners Mark Trotter, Gary Trappler and Alan Rafaeli agreed to numerous strict limitations if they ever send commercial e-mail in the future, including clearly identifying e-mails as unsolicited commercial advertising, or “spam.”

“Spam e-mail is not only pervasive in our society but is one of the most aggravating problems computer users face,” said Attorney General Abbott. “June 7th’s crackdown effectively shuts down one of the worst spam operators and sends a warning to others who would engage in spam e-mailing for profit.”

The defendants and their businesses – known as Leadplex Inc., Payperaction L.L.C. and Eastmark Technology, Ltd. – bombarded consumers with millions of e-mails under at least 250 assumed names. They engaged in the illegal practice of using misleading email subject lines to give recipients the false impression the e-mails contained information important to them. However, by law commercial e-mails must clearly identify that they are advertising and must not be used to trick consumers into responding.

Consumers who responded to these e-mails revealed information about themselves after being assured their privacy would be protected. In fact, the defendants sold this information to other companies who were free to use the information in any manner they chose.

The case was brought under the federal CAN SPAM law, which stands for Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003, as well as the Texas Electronic Mail Solicitation Act and the Texas Deceptive Trade Practices Act. Congress passed the act recognizing the growing threat of spam to the efficiencies of e-mail networks.

Consumers who encounter what they believe to be e-mail spam file a complaint with the Attorney General’s Consumer Protection Division at (800) 252-8011 or file a complaint online at www.oag.state.tx.us

Attorney General Abbott wins state’s first spam case

The total Texas tax bill in 2005 was 65.2 billion dollars. Governor Perry will call a special session of the legislature beginning on Monday, April 17, at 2 p.m. to meet the Texas Supreme Court's June 1 deadline for tax reform. Chart credits - Texas Tax Reform Commission with data from the Texas Comptroller's Office - Nov. 2005.

Part 13 of Texas tax reform - Gov. Perry signs largest tax cut in Texas history into law

Gov. Perry signs largest tax cut in Texas history into law
HB1 Provides $15.7 Billion Property Tax Cut, Gives Teachers More Money, Improves Schools

June 10, 2006

HOUSTON – Gov. Rick Perry May 31 signed into law House Bill 1, which provides the largest tax cut in Texas history, a $2000 across-the-board pay raise for teachers, and major education reforms. “I wholeheartedly believe this is one of the most significant legislative accomplishments for Texas in a generation, because it is one of the most significant steps we have ever taken to improve opportunity for the next generation,” Perry said.

Perry thanked Senator Florence Shapiro of Plano and Representative Rob Eissler of Magnolia, who were present at the bill signing, for their work to secure the votes to pass House Bill 1. The measure passed with an overwhelming margin of 167-8 votes in the Texas Legislature.

“Because of their leadership, homeowners and businesses will save $15.7 billion on school property taxes over the next three years – enough to lower rates by 33 percent – and make the dream of homeownership more affordable for millions of Texas families,” Perry said. “And this is a tax cut Texans can take to the bank, and count on in the years to come.”

Taxpayer protections included in HB 1:

School districts can raise the tax rate only 4 cents one time. Beyond that, if local leaders want more money from taxpayers, they have to get voter approval. Under current law, local school boards can raise tax rates by 6 cents every year without giving voters any say at the ballot box. (HB 1)

If appraisal creep yields more revenue than voters have authorized, school districts must automatically seek voter approval to keep it. This provision will not lower the cap on appraisal increases – something Perry strongly supports – but it caps the amount of money school districts can receive from higher appraisals without a vote of the people.

“ I have often said that Texans not only want more money for education, they want more education for their money. House Bill 1 achieves both of these important goals,” Perry said. “Teachers are the heart of any successful education effort, and their salaries should reflect the outstanding job they are doing to prepare our children for a lifetime of success. And those who have the greatest impact in the classroom should be rewarded even more.”

Education reforms included in HB 1:

• A $2,000 Pay Raise for Teachers: Legislators passed a $2,000 across-the-board pay raise for teachers, restoring the full amount of the teacher health stipend and building on the positive trend in teacher compensation that has seen salaries increase by $11,700 for teachers in the classroom since 1999.

• Performance Pay for Excellent Teachers: The legislation will create the largest performance pay plan in the nation to reward classroom excellence. With $260 million for bonuses of up to $10,000 per teacher for locally-designed incentive programs, and another $100 million for the Governor’s Educator Excellence Awards Program, Texas will take the national lead in rewarding educational excellence and attracting top-performing teachers to struggling campuses.

• Improving High Schools: HB 1 provides more than $1 billion over three years to reform Texas high schools and further the goals of the governor’s high school initiative, which are to reduce the dropout rate, replicate successful school models and prepare more students for college.

• Raising the Bar: Legislators strengthened the curriculum by requiring four years of math and science to better prepare students for the high-tech economy.

• Robin Hood Relief: By 2008, close to $1 billion in local property tax revenues will remain in local districts to be spent on local students instead of being exported to other areas of the state.

• Greater Funding Equity: The state will make a historic commitment to funding fairness, achieving up to 94 percent funding equity on enrichment dollars.

• Teacher Mentoring: Millions of dollars will be dedicated to teacher mentoring programs to keep young educators in the classroom.

• More Money for Schools: With $1.8 billion to fund teacher pay increases and classroom excellence initiatives, as well as funding provided last session, legislators have increased school funding by $3.4 billion in the current fiscal biennium.

• State Share Increases Dramatically: By next year, the state share of education funding will increase to 50 percent, reversing a trend scheduled to take us to 34 percent in FY2007 if nothing had been done.

“ This session was a tremendous success. We passed a historic property tax cut, implemented business tax reforms supported by dozens of employer associations and chambers of commerce, and raised salaries for Texas teachers, even while lowering the overall tax burden by $7 billion,” Perry said. “And because of House Bill 1, school finance is now out of the courthouse, and back on constitutional footing.”

For more information on the historic school finance legislation, visit www.governor.state.tx.us.

Part 12a of Texas tax reform - Gov. Perry signs taxpayer protection bill

Perry - Part 10a of Texas tax reform - School finance reform passed article

Perry - Part 10b of Texas tax reform - More information about passage of comprehensive school finance reform article

Part 11 of Texas tax reform - Perry signs landmark business tax reform legislation article

Part 12a of Texas tax reform - Gov. Perry signs taxpayer protection bill

Perry - Part 12b of Texas tax reform - Taxpayer Protections

Perry - Texas Tax Reform Commission report - March 2006 pdf - size - 635 kb

Houston woman gets 50-year sentence following trial for Medicaid fraud

Doris Jean Blake also ordered to repay over $1 million to the government

From the Office of Greg Abbott, Attorney General of Texas

May 30, 2006

HOUSTON – Texas Attorney General Greg Abbott May 26 lauded a Harris County jury and judge following a 50-year sentence handed down Thursday against a previously convicted felon who bilked the Medicaid system of over $1 million in a fraudulent chemical dependency counseling operation.

Doris Jean Blake, 60, of Houston was ordered to repay the government the funds she illegally skimmed over several years while operating Help Helping Each Other Live Positive, a chemical dependency counseling “service.”

“This harsh but just sentence goes to show just how seriously the public and the judicial system take these kinds of crimes,” said Attorney General Abbott. “I thank Harris County District Attorney and his prosecutors for their hard work in bringing this criminal to justice. We will not rest until all such frauds see their day in court.”

Blake was arrested last September after Attorney General Abbott’s Medicaid Fraud Control Unit and Harris County District Attorney’s Office obtained an indictment from a grand jury, followed by an arrest warrant. She has been incarcerated in the Harris County Jail under $250,000 bond. On parole at the time of her arrest, Blake has been previously arrested for numerous crimes, including robbery, theft, forgery and prostitution.

From September 2001 to December 2003, Blake routinely billed Medicaid for counseling services she never rendered. She accomplished this by providing counseling under contract with several licensed professional counselors (LPC), focusing on Medicaid clients. She used the LPCs’ provider numbers to bill Medicaid for nonexistent counseling services for the more than two-year period.

Harris County Assistant District Attorney Kay Lynn Willford prosecuted Blake, based on the extensive investigation conducted by the Attorney General’s Medicaid Fraud Control Unit officers.

To obtain more information about the Attorney General’s efforts to fight Medicaid fraud, access the agency’s Web site at www.oag.state.tx.us.

Houston woman gets 50-year sentence for Medicaid fraud

Attorney General Abbott urges Texas veterans to take measures to protect themselves against identity theft

Precautionary steps should be taken after federal breach of veterans’ personal information

From the Office of Greg Abbott, Attorney General of Texas

May 26, 2006

AUSTIN – Texas Attorney General Greg Abbott May 25 cautioned Texas veterans to take several precautionary measures in response to the recent theft of electronic data from an employee with the U.S. Department of Veteran Affairs (VA). The data contained identifying information including names, Social Security numbers, and dates of birth for up to 26.5 million veterans and some spouses, as well as some disability ratings.

“While there is currently no evidence that any missing data has been used illegally, I join the VA in asking all Texas veterans to be extra vigilant and to carefully monitor bank statements, credit card statements and any statements relating to recent financial transactions,” said Attorney General Abbott.

The VA will soon begin sending out individual notification letters to veterans whose information was compromised. The VA has staffed a call center that veterans may call to get information about this situation, which can be reached toll-free at 1-800-FED INFO (333-4636). The call center will operate from 7 a.m. to 8 p.m. CST, Monday-Saturday as long as it is needed. The call center will be able to handle up to 20,000 calls per hour (260,000 calls per day). Veterans can also go to www.firstgov.gov as well as www.va.gov/opa for more information.

Texas veterans can access the Attorney General’s new Identity Theft Victim’s Kit by going to http://www.oag.state.tx.us/consumer/idtheft.shtml. The kit is designed to help Texans who have fallen victim to identity theft begin the process of recovering, both financially and legally. It includes relevant forms and agency contact information to help restore credit and prevent further victimization.

Texas veterans should immediately call the fraud department of one of the three credit reporting agencies -- Experian, Equifax, or TransUnion. When you request a fraud alert from one bureau, it will notify the other two for you. Your credit file will be flagged with a statement that says you may be a victim of fraud and that creditors should phone you before extending credit.

Equifax fraud department: (888) 766-0008

Web: www.equifax.com

Experian fraud department: (888) EXPERIAN (888-397-3742)

Web: www.experian.com/fraud

Trans Union fraud department (800) 680-7289

Web: www.transunion.com

Under the Fair Credit Reporting Act (FCRA), you can place an initial fraud alert for only 90 days. You may cancel the fraud alerts at any time.

When you establish the fraud alert, you will receive a follow-up letter from each credit bureau. Each letter explains how you can order a free copy of your credit report from that credit bureau. We suggest that you take advantage of this offer and order your credit reports soon. If you are a victim of identity theft, you will see evidence of it on your credit report.

Examine your credit reports carefully. When you receive your credit reports, look for signs of fraud such as credit accounts that are not yours. Check if there are numerous inquiries on your credit report. If a thief is attempting to open up several accounts, an inquiry will be listed on your credit report for each of those attempts. Also, check that your Social Security Number, address(es), phone number(s), and employment information are correct.

Continue to monitor your credit reports. Be aware that these measures may not entirely stop new fraudulent accounts from being opened by an imposter. Credit issuers do not always pay attention to fraud alerts, even though federal law now requires it. Once you have received the first free copy of your credit report, follow up in a few months and order another.

Texas veterans might also consider a security freeze. Texas law enables individuals to place a security freeze on their credit reports if they have filed an identity theft criminal complaint with law enforcement. A security freeze is stronger than a fraud alert because it prevents anyone from accessing your credit file until and unless you authorize the credit bureaus to release your report. (Please note that it does not affect existing accounts and includes other exceptions). Be aware that this might be inconvenient if you will be applying for new credit, an apartment, or employment involving a background check, since you will have to lift the freeze on your credit file. You can write to request that it be lifted for a certain period of time, or for a specific creditor.

If your credit report indicates you are a victim of identity theft, you will want to immediately file a police report. It is very important to do as you will use the report as proof that you are a victim of identity theft.

Report fraudulent accounts and erroneous information in writing to the credit bureaus and the credit issuers following the instructions provided with the credit reports. You will more than likely be asked for a copy of your police report. A telephone call will not protect your rights under the law.

In all communications with the credit bureaus, you will want to refer to the unique identification number assigned to your credit report and mail items certified, with return receipt requested. Be sure to save all credit reports as part of your fraud documentation.

The U.S. Department of Justice (DOJ) has the authority to prosecute identity theft at the federal level. You can report ID theft to federal authorities and receive additional assistance with identity theft related issues through the Federal Trade Commission by calling 1-877-IDTHEFT (1-877-438-4338), or visit their Web site at www.ftc.gov.

TX AG Abbott urges Texas veterans to protect themselves against identity theft

Gov. Perry - State and local officials best in responding to disaster

Praises state and local progress in special needs evacuations, fuel and traffic plans

May 24, 2006

BEAUMONT–Gov. Rick Perry today thanked the 1,300 attendees at the Texas Hurricane Conference for their work during last year’s devastating hurricane season, and praised local and state progress in preparing for what is predicted to be another busy hurricane season. The annual conference brought together state and local emergency response personnel to discuss progress Texas has made in hurricane preparedness as a result of lessons learned during hurricanes Katrina and Rita, and ways to further improve preparedness for future storms.

“That entire period of time from late August until late September was one of the most difficult periods of time this state has ever endured. And yet it was also our finest hour,” Perry said. “And the reason is because of the leadership, the courage, and the compassion of the men and women in this room. Emergency response personnel, local elected officials, and concerned, everyday citizens made me so proud to be governor of the greatest state in the union.”

Perry reminded attendees that some of the first rescue workers on the ground in New Orleans when Katrina struck were the search and rescue personnel of Texas Task Force One.

“As people fled Louisiana, thousands poured across our border and found refuge right here in Southeast Texas. You opened your homes, your businesses and your houses of worship to give them a place to rest and a warm meal. And before coastal Texans could even catch their breath, you learned about a category five hurricane brewing in the gulf, heading anywhere from Corpus Christi to the Louisiana line. And you did it all over again, stretching your capacity to move millions of people out of Rita’s way,” Perry said.

The damage from Hurricane Rita totaled billions of dollars and destroyed or damaged 75,000 homes, yet the storm is often referred to as “the forgotten hurricane” because the federal government has fallen well short of recovery assistance promised to Texas. Perry traveled to Washington in March to press the U.S. Senate Appropriations committee to provide more than $2 billion in funding to help Texas recover from hurricanes Katrina and Rita, and challenge the federal government to make good on promises made to Texas.

“The federal bureaucracy has treated Southeast Texans as lesser citizens. Mother Nature treated Rita victims on both sides of the Texas-Louisiana border with equal wrath, and the federal government should treat Rita victims in both states with equal compassion and equal assistance,” Perry said.

Perry said despite being shortchanged by the federal government last year, the state remains focused on being as prepared as possible for the upcoming hurricane season, which starts June 1. “Rita exposed flaws in our own planning that we are working to rectify, with the next hurricane season just one week away,” Perry said.

Last fall, Perry appointed the Task Force on Evacuation, Transportation and Logistics to take testimony from local officials, emergency response personnel, and citizens on lessons learned from Hurricane Rita. In March, Perry issued an executive order implementing the task force recommendations that did not require legislative approval. The executive order focused on five key areas: the evacuation of people with special needs; command, control and communications; traffic management; fuel availability; and public awareness.

Perry’s executive order directed the Texas Department of Transportation to work with the private sector on plans to better manage traffic flow and fuel supplies in evacuation areas and along major evacuation routes.

“Let me say something about evacuation gridlock: there is no magic formula to end all traffic gridlock during an evacuation. The fact is there is no magic formula to end gridlock in Houston on an average workday, let alone when a couple million people or more head for the highways within a few hours of each other,” Perry said. “Our aim is to make the situation better with spaced out fuel stations and aid stations.”

Perry also called for regional uniform command structures in the state’s 24 planning regions to coordinate disaster preparations and response.

“The reason I asked for one person to serve as a regional unified commander was not to create division among different elected officials, but because I do not believe life and death decisions which should be made in a matter of minutes are best made by committees,” Perry said. “Hurricanes cross jurisdictional boundaries. That’s why it is important for the state to have a greater coordinating role, and for local implementation to occur under a regional command structure as the report recommends.”

The state has also focused on improved planning to evacuate Texans with special needs – including the elderly and disabled, as well as those who simply do not have a ride to safety – and their pets.

“Keeping track of and mobilizing to safety our special needs population is an immense task that requires detailed coordination for a population that not only includes those in nursing homes and hospitals, but the indigent without transportation, and those without homes,” Perry said. “In Texas, where your dog is as prized a possession as your pick-up truck, it should come as no surprise that many Texans chose to ride out the storm rather than separate from their pets. This is another important aspect of our special needs plan.”

“No hurricane response plan can anticipate every eventuality because reality always throws curve balls that even the best simulation models will miss from time to time. But I do believe, because of your work and expertise, that we are better prepared today to effectively respond to a hurricane than we were one year ago today,” Perry said. “The fact is, we have to be, and Texans will expect nothing less.”

Perry - State and local officials are best disaster responders

Gov. Perry orders flags lowered in memory of Lloyd Bentsen

May 24, 2006

AUSTIN—Gov. Rick Perry yesterday ordered flags at state buildings to be flown at half-staff for five days in memory of Lloyd Bentsen, who represented Texas in the U.S. House of Representatives for six years and in the U.S. Senate for 22 years.

“Today we mourn the loss of a war hero and true Texas leader who earned the respect of the nation with his dedication to public service,” Perry said. “Anita and I extend prayers of comfort to his family in their time of grief, and urge all Texans to remember and honor his life of service.”

Flags will also be flown at half-staff on the day of his burial services.

Part 12a of Texas tax reform - Gov. Perry signs taxpayer protection bill

House Bill 2 ensures longevity of $15.7 billion property tax cut; additional legislation protects against local tax increases, appraisal creep

May 24, 2006

WAXAHACHIE–Gov. Rick Perry yesterday signed into law House Bill 2, legislation that dedicates future revenue increases to sustain the historic $15.7 billion property tax cut passed by the legislature and provide lasting relief for years to come.

“I am proud today to sign legislation that protects Texans tax cuts for years to come, House Bill 2,” Perry said. “For too long, Texans have paid some of the highest property taxes in America, in spite of significant tax cuts authorized by the legislature in recent years. But that’s about to change. This time Texans will get both tax rate relief and tax rate reform.”

Perry thanked state Rep. Jim Pitts of Waxahachie who authored the legislation and participated in the bill signing, for shepherding the bill through the Texas House. State Senator Tommy Williams of The Woodlands, who sponsored the bill in the Senate, also participated in the bill signing.

“For as long as state leaders have been working on this challenge, we have said that our goal was to give Texans greater tax fairness, not a greater tax burden, and with House Bill 2, that promise is kept,” Perry said. “Our school finance plan contains historic taxpayer protections, including measures that give voters greater authority to stop local tax increases and the most significant protection against appraisal creep ever adopted in Texas.”

New taxpayer protections included in school finance legislation:

• Every new dollar generated by the reformed business tax, the increase in the cigarette tax and new anti-fraud measures related to the sale of used vehicles will flow directly to sustained property tax relief. (HB 2)

• After the school property tax rate is lowered to one dollar, two-thirds of the dedicated revenue will go to lowering property tax rates even further, and one-third will go to schools. (HB 2)

• School districts can raise the tax rate only 4 cents one time. Beyond that, if local leaders want more money from taxpayers, they have to get voter approval. Under current law, local school boards can raise tax rates by 6 cents every year without giving voters any say at the ballot box. (HB 1)

• If appraisal creep yields more revenue than voters have authorized, school districts must automatically seek voter approval to keep it. This provision will not lower the cap on appraisal increases – something Perry strongly supports – but it caps the amount of money school districts can receive from higher appraisals without a vote of the people. (HB 1)

“This is a tremendous victory for taxpayers, who can use the ballot box to keep local taxes low. Taxpayers will be able to decide for themselves whether schools need additional dollars, because our plan also gives Texans greater transparency in school budgeting. Texans can verify whether their dollars are being spent wisely and for their intended purpose and they can demand change if they don’t like what they see.” Perry said.

In addition to strong taxpayer protections, school finance legislation passed by the legislature will:

• Provide the largest property tax cut in Texas history and lowers Texans’ overall tax burden by some $7 billion.

• Reward every Texas teacher with a $2,000 pay increase and provides the largest teacher merit pay program in the nation.

• Invest millions of new dollars into dropout prevention and college readiness efforts.

• Guarantee a historic level of funding equity, and significantly reduces the impact of Robin Hood.

• Reform the franchise tax to close loopholes, reward employers for creating jobs and investing in employee benefits, and mandating that businesses that hire illegal immigrants will pay the price with higher taxes.

“Because of these new taxpayer protections and the sustained tax relief provided by House Bill 2, Texans can look forward to a stronger economy, more dollars wisely spent on education, and an end to sky-high property taxes that threaten the dream of homeownership,” Perry said.

Perry - Part 10a of Texas tax reform - School finance reform passed article

Perry - Part 10b of Texas tax reform - More information about passage of comprehensive school finance reform article

Part 11 of Texas tax reform - Perry signs landmark business tax reform legislation article

Part 12a of Texas tax reform - Gov. Perry signs taxpayer protection bill

Perry - Part 12b of Texas tax reform - Taxpayer Protections

Perry - Texas Tax Reform Commission report - March 2006 pdf - size - 635 kb

Judiciary Committee clears marriage protection amendment on party-line vote

Constitutional amendment now moves to the Senate floor for debate

From the Office of Senator John Cornyn

May 23, 2006

WASHINGTON—The Senate Judiciary Committee approved a constitutional amendment May 11 preserving traditional marriage. Cornyn, a member of the committee and former Texas Supreme Court justice, made the following statement following the committee vote:

“While some may question the need to address this issue at this particular time, the simple answer is that the institution of marriage continues to be under assault by a coordinated campaign of legal activists. Since 2004 alone, state courts in Washington, New York, California, Maryland, and Oregon have found traditional marriage laws unconstitutional, and a federal judge in Nebraska has struck down a state constitutional amendment.

“Numerous other lawsuits have been filed and will continue to be filed across the nation – even as voters take to the polls in support of laws protecting marriage. The question presented to this committee May 18 was simple: Do you believe traditional marriage is important enough that it deserves full legal protection? In my view, the answer to that question is also simple. Yes.

“Marriage must be protected by the Constitution, and the American people should be able to choose, not have invalidation of traditional marriage laws forced on them by courts. The amendment we passed will provide that protection. It will define marriage as the union of a man and a woman and protect against judicial activism.”

Cornyn is a member of the following Senate Committees: Armed Services; Judiciary; Budget, Small Business and Entrepreneurship; and Joint Economic. Cornyn was previously Texas Attorney General, Texas Supreme Court Justice and Bexar County District Judge.

Cornyn reports - Judiciary Committee clears marriage protection amendment

Texas Attorney General Greg Abbott’s Cyber Crimes Unit marks 3-year anniversary with Sugarland sting that results in 80th arrest

Abbott presses social networking site operators to protect kids from pornography, predators

May 22, 2006

AUSTIN–Texas Attorney General Greg Abbott’s Cyber Crimes Unit commemorated its third anniversary today following a highly successful sweep in Sugar Land that landed three alleged cyber predators in jail. The arrests of the men for using the Internet to solicit minors for sex brings to 80 the total number of cyber predators who have been arrested by the Unit and prompted Abbott to press the operators of social networking sites such as MySpace.com and Xanga to strengthen safeguards to protect children from pornography and sexual predators.

At a Cyber Crimes Summit today, Attorney General Abbott hosted local, state and federal officials, law enforcement, technology industries, and consumers to further the dialogue about the proliferation of online criminal activity and discuss technological advances that can help slow the growing threat of cyber predators and cyber crimes.

John David Payne 27, of Brenham	Benjamin Alexander David, 20, of Katy	Weston Lee Starks, 24, of Houston

“Computers have revolutionized the way we live, but Internet-related crimes subject Texans to identity theft, privacy breaches and the exploitation of children,” said Attorney General Abbott. “Since the Cyber Crimes Unit was launched in 2003, my investigators have seen firsthand the dangerous criminals that lurk online, from those who prey on innocent children to those who spread viruses and spyware. All cyber crimes are despicable, and today’s Cyber Crimes Summit shows that public officials, law enforcement, industry leaders and consumers in Texas have a shared commitment to make the Internet a safer place.”

Attorney General Abbott called on operators of wildly popular social networking sites like MySpace.com, Xanga, Friendster and Facebook to step up their efforts to protect children and teenagers from sexually explicit images and solicitations. He pressed for more stringent age verification measures, noting that his investigators find it uncomfortably easy to locate underage profiles on some hosting sites. He also called on operators to utilize software which automatically scans all uploaded photographic images before they are posted on user accounts. If the image is found to be pornographic in nature, it could be blocked and the incident reported to the National Center for Missing and Exploited Children.

“Social networking site operators have made several adjustments to their safety protocols in the last few months, but site content should be monitored more carefully to keep sexual predators on the prowl from gaining access to our children online,” added Attorney General Abbott.

Results from the recent sting in Sugar Land emphasized the need for greater online security with the arrests of three men who allegedly used MySpace.com and other online chat rooms to find young girls, initiate sexual conversations with them and arrange meetings for sex.

Cyber Crimes Unit investigators arrested John David Payne, 27, of Brenham, for the second time since last December for using the Internet to sexually solicit a minor. Chatting online with what he thought was a 13-year-old girl he met on MySpace.com, Payne allegedly engaged in graphic sexual conversation with an undercover Cyber Crimes investigator. On May 10, he was arrested at his Brenham home after he allegedly entered another chat room and propositioned an undercover investigator, who was posing as an underage girl, to meet him for sex.

Payne was first arrested on Dec. 29, 2005 after he arrived at a Bastrop location for an alleged sexual rendezvous with an underage teen. He was indicted by a Bastrop grand jury on April 18, 2006 on charges of attempted sexual performance by a child and attempted aggravated sexual assault of a child. A Washington County grand jury indicted him May 10 on two counts of online solicitation of a minor and criminal solicitation of a minor. Prosecutors with the Attorney General’s office and Washington County District Attorney Renee Mueller’s office are handling the case.

Benjamin Alexander David, 20, of Katy, was arrested May 3 after he traveled over 20 miles from Katy to Sugar Land, allegedly to meet a child for sex. David, who worked for a swimming pool company at the time of his arrest, was chatting online with an undercover investigator he believed to be a 13-year-old girl and allegedly arranged the meeting.

Weston Lee Starks, 24, of Houston, was also surprised to find Cyber Crimes Unit investigators waiting for him on May 11 when he showed up at a Sugar Land apartment for a meeting he had allegedly arranged for sex with a young teen. The Houston laborer was charged with online solicitation of a minor.

Attorney General Abbott’s Cyber Crimes Summit assembled two panels of experts, including Jim Predergast, Executive Director of Americans for Technology Leadership; Bill Walsh, Retired Lieutenant of the Dallas Police Department’s Internet Crimes Against Children Task Force; and Michelle Collins and Traci Carrier of the National Center for Missing and Exploited Children. The panelists discussed law enforcement efforts and technological advances that are being pursued to stop the growing threat of Internet crimes against children and consumers.

Attorney General Abbott has made pursuing sexual predators a top priority of his administration. On March 17, the Cyber Crimes Unit was awarded a $300,000 grant from the U.S. Department of Justice’s Office of Juvenile Justice & Delinquency Prevention to establish an Internet Crimes Against Children Task Force. The grant will help the Unit expand its efforts to protect children and partner with law enforcement agencies across Texas to fight against online child exploitation.

In addition to the Cyber Crimes Unit, the Fugitive Unit, which locates convicted child sex offenders who have violated the terms of their parole and could be stalking children, has arrested more than 270 such offenders. His office also has obtained convictions against 39 men on child pornography charges.

To find out more about Attorney General Abbott's efforts to crack down on sexual predators, visit the Attorney General's Web site at www.oag.state.tx.us or call (800) 252-8011.

Abbott- Cyber Crimes Unit makes 80th arrest in Sugarland sting

Part 11 of Texas tax reform - Gov. Perry signs landmark business tax reform legislation

This legislation makes the business tax more fair and helps deliver $15.7 billion in property tax cuts

May 19, 2006

BROWNWOOD–Gov. Rick Perry May 18 signed into law House Bill 3, legislation that provides comprehensive business tax reform but also helps deliver the largest property tax cut in the state’s history.

“Today I am proud to sign into law landmark business tax reforms that will provide greater fairness for employers, reliable funding for our school classrooms and revenue that will help deliver a record $15.7 billion property tax cut for the people of Texas,” Perry said.

Perry thanked state Rep. Jim Keffer, R-Eastland, who authored the legislation and participated in the bill signing, for shepherding the bill through the Texas House. Sen. Troy Fraser, R-Marble Falls, also attended the bill signing.

Perry noted that the old tax system has gaping loopholes that allows businesses with good accountants to avoid paying their share while other employers got stuck carrying an unfair tax load and schools struggled as revenue from the business tax steadily dwindled... and millions of homeowners who have been forced to make up the difference with skyrocketing local property taxes.

“When I put my signature on House Bill 3, that will all change,” he said. “Employers will benefit with a tax system that is fairer, a tax base that is broader and a tax rate that is substantially lower than the one we have today.

“And as the centerpiece of our school finance plan, House Bill 3 will help us lower school property taxes by 33 percent for every homeowner and every other property owner in Texas.”

House Bill 3:

• Rewards employers for creating jobs and investing in employee benefits. Every time a business puts a Texan to work, pays for health insurance or invests in a pension plan... their tax liability will go down.

• Protects small employers so that they can continue to drive Texas’ economic growth.

• Exempts sole proprietors and general partnerships from the tax, as well as businesses whose gross receipts total $300,000 or less, and those whose tax bill is less than $1,000.

• Rewards employers that create jobs and contribute to our economy, but also mandates that. Businesses that hire illegal immigrants will pay the price with higher taxes.

House Bill 3 is one of five bills in a package of legislation that provide the largest property tax reduction and the most comprehensive education reforms in decades.

Over the next three years, the owner of an average-priced home will see their property tax bill go down by nearly $2,000, Perry noted.

“This is tax relief that Texans can count on for more than just a year or two,” he said. “Every new dollar raised from tax reform will go straight back to the people in property tax cuts. And taxpayers will have more power to stop tax increases passed at the local level.”

School finance legislation passed by the legislature will:

• Reward every Texas teacher with a $2,000 pay increase and provides the largest teacher merit pay program in the nation.

• Invests millions of new dollars into dropout prevention and college readiness efforts.

• Guarantees a historic level of funding equity, and significantly reduces the impact of Robin Hood.

• Lowers Texans’ overall tax burden by some $7 billion.

Perry said that none of these achievements would have been possible without the historic reforms of House Bill 3, which were not only passed by bipartisan majorities in the House and Senate but supported by virtually every major employer association in the state.

“If you search the pages of Texas history, you will find no other tax reform plan that has been endorsed by manufacturers and service providers, retailers and realtors, education leaders and taxpayer advocates, the state’s largest business association, the chambers from every major Texas city, and thousands of large and small entrepreneurs across the state,” Perry said.

Perry - Texas Tax Reform Commission report - March 2006 pdf - size - 635 kb

Part 11 of Texas tax reform - Perry signs landmark business tax reform legislation article

Abbott shuts down Dallas-based Bioperformance for peddling fake fuel pills in pyramid scheme

Claims of increased gas mileage to save consumers money called bogus

From the Office of Greg Abbott, Attorney General of Texas

May 18, 2006

AUSTIN – Texas Attorney General Greg Abbott yesterday filed a lawsuit and obtained a temporary restraining order and asset freeze against Texas-based BioPerformance Inc. The company, organized as an illegal pyramid scheme, markets a fuel pill it falsely claims will boost gas mileage and save consumers money.

BioPerformance Inc., president and owner Lowell Mims and co-owner Gustavo Romero of Irving advertise nationally via the Internet and through seminars around Texas and other states, exploiting the climate of today’s high fuel prices. The company’s ads claim the gasoline pills and powders they offer have a non-toxic “top secret gas pill” that can increase fuel efficiency by 30 percent or more and cut harmful emissions by up to 50 percent. In fact, the additive is basically the chemical equivalent of mothballs, which are toxic.

Screenshot from BioPerformance Web site claiming savings at the gas pump and picture of bottle of gas pills. Photo credit: Texas Attorney General's Office.

“BioPerformance claims its top-secret gas pills can save consumers big bucks at the gas pump,” said Attorney General Abbott. “These claims are bogus; the pill does absolutely nothing to improve gas mileage. The company is merely a smokescreen to trigger the recruitment of more and more paying members into what appears to be an illegal pyramid scheme.”

Scientists who tested the product at the University of Texas at Austin and at a Florida university concluded that the pills are mainly naphthalene, the chemical found in mothballs. The Attorney General’s laboratory expert actually concluded BioPerformance’s product could decrease engine performance.

Legitimate multi-level marketing businesses pay commissions based on the sale of goods and services, while illegal pyramids, which the Attorney General alleges BioPerformance is, pay commissions based mainly on the recruitment of people to the organization.

Consumers are encouraged to become “dealers” at the various dazzling seminars BioPerformance sponsors around the country, at start-up costs of between $300 to over $500. Members can participate at various levels of “business volume” sales, but ultimately the plan functions on the basis of how many others a member can recruit to become dealers, which is by definition a pyramid scheme. On its Web site the company boasts almost 4,500 Texas members with $25 million in sales since December.

The Attorney General’s lawsuit alleges violations of the Texas Deceptive Trade Practices Act and the promotion of an illegal pyramid scheme, which can result in penalties of $20,000 per violation. The suit requests restitution to consumers who have been financially harmed by the false promises of this operation. These false income promotions include slick Web site come-ons for new sports cars, mansions and exclusive vacations “just for helping Americans save money on gas.”

The Attorney General’s scientific expert also found that the chemical compound used in these pills can be harmful to humans. Short-term exposure to naphthalene by humans via inhalation, ingestion or skin contact can result in anemia and neurological or liver damage.

Consumers who encounter a business that is making false claims or appears to be operating as a pyramid scheme may file a complaint with the Attorney General’s Consumer Protection Division at (800) 252-8011 or file a complaint online at www.oag.state.tx.us .

Part 10a of Texas tax reform - Gov. Perry praises school finance reform victory

Plan Provides for Educational Excellence, Record Property Tax Relief, Historic Tax Reform

May 17, 2006

AUSTIN–Gov. Rick Perry yesterday was joined by Lt. Gov. David Dewhurst, Speaker Tom Craddick, lawmakers and members of the Texas Tax Reform Commission to praise the historic school finance reform plan passed this week by the Texas legislature. The plan reduces property taxes by an historic $15.7 billion and the net tax burden by $6.9 billion over the next three years, raises salaries for all teachers while creating the largest performance pay program in the nation to reward teaching excellence, and gives Texas a broader, fairer business tax that reflects our diverse economy and is assessed at a low rate.

“I will be proud to sign this plan that will reward teachers and reform our schools, provide a record property tax cut that will make homeownership more affordable, reduce the net tax burden on Texans by nearly $7 billion, and improve our tax system so it is fairer because it is broader,” Perry said. “Because of this plan, our schools will improve, our economy will grow and our state will prosper.”

Taken as a package, House Bills 1,2,3,4 and 5 will reduce property taxes by $15.7 billion over the next three years. The property tax bill on an average-priced home in Texas will drop by nearly $2,000 over the next three years. The net tax burden will decrease by $6.9 billion over the same period, resulting in greater economic growth and job creation as estimated by economists Ray Perryman, David Hartman and Reagan advisor Art Laffer.

The plan uses less than half of the surplus of this biennium, and draws on natural revenue growth in the next biennium. It also achieves landmark reform in education, including:

• A $2,000 Pay Raise for Teachers: Legislators passed a $2,000 across-the-board pay raise for teachers, restoring the full amount of the teacher health stipend and building on the positive trend in teacher compensation that has seen salaries increase by $11,700 for teachers in the classroom since 1999.

• Performance Pay for Excellent Teachers: With the stroke of a pen, Governor Perry will create the largest performance pay plan in the nation to reward classroom excellence. With $260 million for bonuses of up to $10,000 per teacher for locally-designed incentive programs, and another $100 million for the Governor’s Educator Excellence Awards Program, Texas will take the national lead in rewarding educational excellence and attracting top-performing teachers to struggling campuses.

• Improving High Schools: HB 1 provides more than $1 billion over three years to reform Texas high schools and further the goals of the governor’s high school initiative, which are to reduce the dropout rate, replicate successful school models and prepare more students for college.

• Raising the Bar: Legislators strengthened the curriculum by requiring four years of math and science to better prepare students for the high-tech economy.

• Greater Financial Accountability: Taxpayers will now be able to get more detailed information on school expenditures because of new financial accountability reforms.

• Robin Hood Relief: By 2008, close to $1 billion in local property tax revenues will remain in local districts to be spent on local students instead of being exported to other areas of the state.

• Greater Funding Equity: The state will make a historic commitment to funding fairness, achieving up to 94 percent funding equity on enrichment dollars.

• Teacher Mentoring: Millions of dollars will be dedicated to teacher mentoring programs to keep young educators in the classroom.

• More Money for Schools: With $1.8 billion to fund teacher pay increases and classroom excellence initiatives, as well as funding provided last session, legislators have increased school funding by $3.4 billion in the current fiscal biennium.

• State Share Increases Dramatically: By next year the state share of education funding will increase to 50 percent, reversing a trend scheduled to take us to 34 percent in FY2007 if nothing had been done.

Perry also praised the taxpayer protections contained in the tax cut package, saying “new taxpayer protections that dedicate revenue increases to sustained property tax relief, and that require a vote of the people for local school leaders to raise taxes more than four cents, ensure that this tax cut is an investment in Texas’ future.”

Voters will have to approve local school tax hikes above four cents for every $100 of assessed value. Unlike today’s law, which allows local school boards to raise taxes up to six cents every year without a rollback election, the new law allows them only four cents above the new rate one time without an election.

Perry thanked former Comptroller John Sharp and members of the bipartisan tax reform commission for creating “the plan no one thought possible: a tax reform bill that is fair, equitable and good for the economy.” Perry also praised Lieutenant Governor Dewhurst, Speaker Craddick and members of the legislature for their leadership in passing the historic reforms.

Perry - Texas Tax Reform Commission report - March 2006 pdf - size - 635 kb

Perry - Part 10a of Texas tax reform - School finance reform passed article

Perry - Part 10b of Texas tax reform - More information about passage of comprehensive school finance reform article

Legislative update

By Marilyn Clark, League City Area News Online

May 16, 2006

According to the Texas Legislature Online, before the Texas Legislature adjourned Monday, both the House and the Senate signed the enrolled version of HB1 which provides tax reform for education. This bill now awaits Gov. Perry's signature.

Bills passed by both the Senate and the House during the 3rd session of the legislature include

" HB 1 Author: Chisum / et al.
Sponsor: Shapiro / et al.
Last Action: 05/15/2006 H Signed in the Senate
Relating to public school finance, property tax relief, public
school accountability and programs, and related matters; making an appropriation.

"HB 2 Author: Pitts / et al. Sponsor: Williams Last Action: 05/15/2006 H Signed in the Senate Relating to the allocation of certain revenue from franchise taxes, motor vehicle sales and use taxes, and taxes on cigarettes and other tobacco products to school district property tax relief and public education.

"HB 3 Author: Keffer, Jim / et al. Sponsor: Ogden / et al. Last Action: 05/15/2006 H Statement of Leg. Intent Recorded in Journal Relating to certain taxes affecting businesses; making an appropriation; providing penalties.

"HB 4 Author: Swinford Sponsor: Janek Last Action: 05/10/2006 H Sent to the Governor Relating to motor vehicle sales and use taxes.

"HB 5 Author: Hamric Sponsor: Armbrister Last Action: 05/15/2006 H Signed in the Senate Relating to increases in the taxes on cigarettes and other tobacco products.

"HB 63 Author: Pitts / et al. Sponsor: Williams Last Action: 05/15/2006 H Signed in the Senate Relating to appropriations to pay for damages and disruptions suffered by Lamar University and its related institutions caused by Hurricanes Katrina and Rita.

"HB 97 Author: McCall / et al. Sponsor: Duncan Last Action: 05/15/2006 H Signed in the Senate Relating to prohibiting certain disruptions at a funeral service; creating an offense (1)."

1. Bills passed by the House and Senate for the 3rd called session of the 79th Legislature at http://www.capitol.state.tx.us/tlo/reports/daily/793/passed.htm

Statement of Gov. Rick Perry on House concurrence in Senate changes to House Bill 1

May 16, 2006

AUSTIN – On Friday, Gov. Rick Perry released the following statement on the House 136-8 vote to concur in Senate changes to House Bill 1.

“Today is a historic day in our state. With overwhelming bipartisan support, legislators have provided $15 billion in property tax relief, a net tax cut of more than $6 billion, across-the-board pay raises for teachers, and the largest performance pay plan in the nation to reward classroom excellence. I applaud Speaker Craddick and Lt. Governor Dewhurst on their extraordinary leadership on these bills, as well as the work of Sen. Shapiro and Rep. Chisum. All members of the legislature can hold their heads high, proud of the historic work they have done.”

Gov. Rick Perry Expands Special Session Call

May 16, 2006

AUSTIN – Gov. Rick Perry today expanded the call of the special session to legislation that will ban protests or other disruptive behavior at funeral and burial services for Texas military men and women.

“Just as these brave men and women of the United States military paid the ultimate sacrifice to protect our freedoms, Texas must now protect the sanctity and solemnity of services as these fallen heroes are laid to rest,” Perry said. “There is a time and place for protests, but it is not at funerals and burials for U.S. soldiers who died for that very freedom.”

The proposed legislation would not prohibit patriotic displays.

The governor also opened the call to legislation transferring the administration of the Irma Rangel School of Pharmacy from Texas A&M University – Kingsville to the Texas A&M University System Health Science Center.

Texas Attorney General Greg Abbott appoints first assistant

May 15, 2006

AUSTIN—Texas Attorney General Greg Abbott today named Judge Kent C. Sullivan First Assistant Attorney General. Judge Sullivan, who will begin on June 12, presently serves as presiding judge of the 80th Judicial District Court of Harris County.

"This appointment delivers the message that my office will employ talented and experienced people with proven ability to serve Texans well," said Attorney General Abbott. "Kent's judicial and civil litigation background will be of great value to the agency. He brings strong leadership, proven management experience and distinguished legal expertise to the people of Texas."

Prior to his three years on the bench, Judge Sullivan worked in private practice for 21 years and was a managing partner in several Houston law firms, primarily handling complex civil litigation. He began his legal career as a civil trial attorney with Butler & Binion in Houston.

Judge Sullivan's wealth of experience includes temporary service on the First Appellate District Court of Appeals and membership on the Supreme Court Advisory Committee. He has been active with the State Bar of Texas since 1999, serving on the Board of Directors and its Executive Committee. Judge Sullivan has also served on the board of directors of the Texas Center for the Judiciary.

Judge Sullivan graduated with distinction from the University of Virginia with a bachelor’s degree in economics. He earned his law degree in 1982 at the University of Virginia School of Law.

Abbott appoints Judge Sullivan as first asst. attorney general

Gov. Rick Perry expands special session call

May 12, 2006

AUSTIN–Gov. Rick Perry yesterday expanded the call of the special session to the following issues:

• Legislation that provides for the issuance of revenue bonds or other obligations to fund capital projects at public institutions of higher education. Legislation that provides for an appropriation to the Texas Higher Education Coordinating Board to fund debt service on revenue bonds or other obligations on capital projects at public institutions of higher education.

• Legislation relating to appropriations to pay for damages and disruptions suffered by Lamar University and its related institutions caused by Hurricanes Katrina and Rita.

• Legislation relating to the recovery and securitization of reasonable and necessary hurricane reconstruction costs incurred by certain electric utilities outside of the Electric Reliability Council of Texas area.

Attorney General Warns of Top Five Scams Against Senior Texans

By Greg Abbott, Attorney General of Texas

Senior Texans are a top priority of my administration, not just during May, which is Older Americans Month, but all year long. Fraud against seniors is more widespread than most people realize, and timely information about the latest scams that target senior Texans can be a powerful protective weapon. Just knowing about some of the most common tactics used by con artists may be enough to keep seniors from losing their life savings.

Five schemes in particular continue to be reported to my Consumer Protection Office: phony sweepstakes and foreign lotteries; home repair scams; identity theft; investment scams; and bogus charities.

Phony sweepstakes and foreign lotteries

As tempting as it sounds, be assured that you did not win the Spanish lottery, or the Canadian lottery, or any other foreign lottery. Perpetrators of these frauds and similar sweepstakes schemes send official-looking announcements or place phone calls posing as government officials, with promises that you have won a large sum of money, usually in the form of a major prize, winnings from a lottery or an “inheritance.”

To collect the money, they say, they must first collect “fees” and “taxes” from you in advance or verify your bank account information so that the money can be wired to you. Shred the announcement or JUST HANG UP! This is known as advance fee fraud and its promoters are very persistent and persuasive. Do not be intimidated or bullied by a fast-talking phone operator making these kinds of claims.

Seniors wise to these types of scams are now being confronted by another twist: the phony cashier’s check. The scammers attempt to trick the victim into thinking the prize has already been sent by sending the victim a phony cashier's check. The counterfeits are so good sometimes that even banks have been fooled. The victim then lets down his or her guard, believing that they've actually received the money, and sends money for the fees or taxes. The cashier’s check turns out to be worthless and the victim's money is gone. My office has seen several cases in which seniors have been scammed out of their life savings by this trick.

Home repair scams

Be extremely cautious of unsolicited door-to-door home repair sales. Shady contractors may offer to pour a new driveway or repair your roof if you pay them cash in advance for the project. Don't pay for work that has not been done. Use bonded or licensed contractors or builders and get the terms of any warranties in writing. Ask for references from other customers and don’t be rushed into signing a contract just because someone came to your door with a “one-time-only” special deal. Most likely, they are looking for one senior Texan to fall for their scam and then they skip town without performing the work.

Identity theft

Stealing personal information from seniors is one of the lowest forms of crime, but one of the most prevalent. These kinds of crooks are not above rifling through your mail or trash to get what they need to steal your identity. Remember: SHRED IT! Shred all documents that contain personal information, including financial statements, pre-approved credit offers and insurance forms. Check catalogues and magazine subscriptions to be sure your credit card number is not on the cover or mail order form. Never give anyone who calls you your Social Security number, bank account number or credit card number for any reason. Remember, you are entitled to one free credit report from each of the three credit reporting bureaus each year.

Investment scams

My office has had several reports of senior Texans being taken in by “once-in-a-lifetime” investment opportunities and other strategies guaranteeing huge future returns on bogus investments. One senior lost over $200,000 in a phony currency market and another elderly Texan lost over $300,000 in a fraudulent property development scheme. Talk to an experienced attorney when considering retirement-oriented investments, financial planning services, estate planning and legal services that target senior Texans.

Bogus charities

I commend charitable giving, but urge you to ask questions before you donate. Does the solicitor have identification? How will your money be used? Don’t fall for tearful stories and heartbreaking pictures. Check the facts and make sure your gift counts. If you aren’t sure if an organization is legitimate, contact www.give.org. This website is maintained by the Council of Better Business Bureaus to promote wise charitable giving. Remember to confirm the tax-exempt status of any organization to which you choose to make a donation.

Con artists tend to spend money just as fast as they steal it, so money lost in these or similar scams against senior Texans is hard to recover. Prevention is an important key to stopping thieves in their tracks. During Older Americans Month and throughout the year we remain committed to serving and protecting senior citizens across Texas.

Attorney General Warns of Top Five Scams Against Senior Texans

Senate passes bill to fund Texas hurricane recovery, border security, defense needs

Emergency Supplemental Bill includes Cornyn Amendment to provide additional $182 million for hurricane recovery

From the Office of Senator John Cornyn

May 9, 2006

WASHINGTON—U.S. Sen. John Cornyn, a member of the Budget Committee, applauded Senate passage of the Emergency Supplemental funding bill on Thursday that will provide funding for Texas hurricane recovery efforts, border security and national defense needs.

Included in the bill is a bipartisan provision introduced by Sen. Cornyn to provide Texas an additional $182 million for hurricane recovery efforts.

Sen. Cornyn is also a co-sponsor of an amendment in the bill that will substantially increase the reimbursement rate Texas receives for Hurricane Rita recovery. This amendment, introduced by Sen. Kay Bailey Hutchison, will ensure that the state’s hardest hit counties will receive a 90/10 cost sharing agreement for damage reimbursement—up from the previous 75/25.

Cornyn - Senate passes bill providing more money for hurricane relief, border security and defense

Pay your child support to avoid penalties

By Greg Abbott, Attorney General of Texas

May 5, 2006

AUSTIN– My office works hard to ensure that Texas children receive the support they need and deserve. Thankfully, most parents pay their child support in full and on time.

To encourage parental responsibility, the Child Support Division establishes paternity of children born to unmarried parents and obtains court orders for financial and medical support.

When a parent does not follow a court order to make regular child support payments, my office enforces the order by either obtaining a judgment against the parent and setting up a plan for repaying what is owed or by filing contempt-of-court charges. Interest on delinquent child support accrues at a rate of six percent per year.

Under state and federal law, the Attorney General’s office has access to a myriad of enforcement remedies to collect past due child support. Withholding child support from a parent’s paycheck has historically been the most effective enforcement remedy and is used when an employer is known. More than 70 percent of the $1.86 billion collected in state fiscal year 2005 was made possible by withholding income from a parent’s paycheck.

License suspension is another effective tool in enforcing payment of child support. Noncustodial parents who hold a state license, owe more than three months of past-due child support, and are not in compliance with an existing court-ordered or voluntary repayment schedule face license suspension. Licenses and permits ranging from driver’s, medical, dental and law licenses to hunting and fishing licenses can be suspended. Since the goal of this remedy is to compel compliance with a child support order, many parents faced with suspension make a payment agreement with the Child Support Division.

The Attorney General’s office routinely matches parents who owe past due child support with a database of account holders supplied by financial institutions operating in Texas and across the nation. When a match occurs, the Attorney General’s office can freeze – and ultimately seize – the accounts of parents who refuse to voluntarily settle their child support arrears. For example, the Attorney General’s office seized more than $95,000 from one delinquent parent’s bank account after he had fallen drastically behind. The money paid the case in full just in time for the children’s Christmas.

Federal law allows states to seize income tax refund checks from parents who are behind on their child support. Under current law, this tool cannot be used once a child who has never received income assistance turns 18, unless the child is disabled. Effective Oct. 1, 2006, a change in federal law will allow interception of federal income tax refunds to collect arrears for all families on the Attorney General’s caseload, regardless of the children’s age at the time the refund is made.

Another enforcement tool from the federal government is a U.S. State Department hold on passport issuance or re-issuance to a parent who owes at least $5,000 in past due child support. Before informing the State Department to lift the passport hold, my office will require that the delinquent parent make a substantial payment toward the arrears total and arrange to pay off the arrears balance in a timely manner. Effective Oct. 1, 2006, the arrears threshold will be lowered to $2,500.

When all else fails, my office seeks jail time for delinquent parents who continue to ignore a court’s order to pay child support. Since I became attorney general in December 2002, more than 10,000 parents have been incarcerated for failing to pay child support.

While there must be consequences for failing to pay court ordered child support, my office also recognizes that many parents who want to pay child support face obstacles to finding and keeping steady employment. For that reason, over the past 10 years the Attorney General’s office has referred thousands of needy parents to local workforce development boards for employment services.

Abbott - Pay tour child support to avoid penalties

Gov. Perry launches largest hurricane exercise in state history

Announces 2-1-1 Phone Lines Open to Help Coastal Texans Evacuate

May 4, 2006

AUSTIN– As Texas kicked off a four-day hurricane preparedness exercise, Gov. Rick Perry announced today that the state’s 2-1-1 service has been expanded to allow Texans who cannot evacuate themselves to register for transportation assistance should their community be ordered to evacuate.

“Texans who have no means of transportation or those who will require special assistance during an evacuation can now dial 2-1-1 to make arrangements in advance,” Perry said. “Our 2-1-1 operators have been specially trained and are ready to assist those who need to arrange for transportation to get to safety when a storm threatens the Texas coast.”

Coastal Texans who will require transportation assistance during an evacuation are urged to call 2-1-1 as soon as possible to relay their special transportation needs, and not wait until a storm is approaching the coast. By registering in advance, state and local officials will be better able to coordinate transportation needs.

Perry - Hurricane preparedness fact sheet

Perry - Gov. Perry launches largest hurricane exercise in state history article

Buying a home: Know the basics

By Greg Abbott, Attorney General of Texas

May 3, 2006

AUSTIN – For most Texans, Buying a home can be an overwhelming task, whether you're a first-time home buyer or a seasoned veteran who has moved many times. As a prospective home-owner, you should know the basics about home buying to keep from falling victim to unethical sellers who try to exploit the lack of familiarity that consumers have with real estate transactions.

Several parties are involved in the home buying process, beginning with a financing institution. Many sellers will offer to finance the home for you, but it is always a good idea to be pre-approved for a loan, because it puts you in a better position to negotiate interest rates and other terms.

A title agent will conduct research about the home's previous ownership and the lot on which it is built. A title search will reveal whether there are any outstanding debts on the home, such as back taxes a previous owner failed to pay or outstanding liens. Many consumers who have been scammed in real estate transactions were persuaded by fraudulent sellers to forgo a title search. This decision sometimes left the homeowners facing title problems, enormous debts and foreclosure on homes on which they had made substantial down-payments.

When you have found a home that you are interested in, insist that an independent appraiser assess the fair market value of the property. If the seller insists that an appraisal is not necessary or that you use a different appraiser, it could be a sign of someone who is asking too much for the home.

You should also insist on an independent inspection, even if the home is new, to identify any structural problems or other defects that could jeopardize your investment.

Fees for title companies, inspectors and appraisers are included at the closing of the home-buying transaction. Carefully review all documents and never sign a home-purchase document you do not fully understand or a document that has blank spaces.

Before closing, ask your lender whether property taxes will be included with your monthly payment and, if so, make sure this agreement is in the contract. Some consumers have discovered that they were liable for large tax bills only after living in their homes for several months. Contact your local taxing authority to get an idea of how much property taxes will be after your first year in the home.

You will also want to find out whether the financing institution will be collecting insurance premiums, whether they are part of your monthly payments, and what those fees will be before you finalize the contract.

Do not provide substantial sums of money before the deal is finalized. Unethical mortgage brokers or sellers will ask for thousands of dollars up front to guarantee the loan and then disappear with the money without providing the promised financing. Limit earnest money to a few hundred dollars, and talk with your real estate agent about a termination option, which is an agreement you and the seller can enter into that will allow you to terminate the contract within an agreed-upon time window.

Increasingly, my office is receiving complaints about mortgage acceleration specialists who falsely tell consumers they can help them refinance their home and save thousands of dollars. Typically, these companies will offer to deduct payments from the homeowners' checking account and promise to forward that money to the original lender. Be wary of any mortgage acceleration offer. It is not the same as refinancing, and if the mortgage acceleration specialist does not forward payments on time, you could be putting your home and credit history in jeopardy.

I am committed to making sure that Texas consumers are not taken advantage of during the home buying process. In January, my office reached a $325 million multi-state settlement with Ameriquest Mortgage Corp. that prohibited the company from engaging in predatory lending and high-pressure sales tactics. The company also agreed to several major home finance reforms and improved business practices.

A mortgage may be the single most difficult - and most valuable transaction you will ever undertake. I encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

Information on this and other topics is available on the Attorney
General's website at www.oag.state.tx.us.

Abbott - Buying a home

Perry: TXU investment of $10 billion will create jobs, improve environment

Perry Praises Move to Add 21,000 Permanent Jobs, Lower Prices, and Reduce Emissions

May 2, 2006

DALLAS–Gov. Rick Perry praised TXU for announcing a $10 billion investment to build 13 new power generation facilities, promote lower energy prices, and reduce emissions.

“The benefits of TXU’s investment will be both immediate and lasting. In the short term, this expansion will put 40,000 Texans to work during construction of the new facilities, while also creating 21,000 new permanent jobs across the state,” Perry said. “Much of the company’s $10 billion investment will go towards worker salaries, which not will not only make life better for individual families, but boost our entire economy as those paychecks are cashed and spent.”

Perry said TXU’s investment could not come at a better time given the unexpected power outages two weeks ago. The outages resulted from unseasonably high temperatures at a time when 20 percent of the generating capacity was shut down for routine maintenance rather than problems with current energy capacity. Perry noted that the temporary outages helped make Texans aware of challenges the state could face as demand for electricity increases with our growing population.

Part 9 of Texas tax reform - Major healthcare groups announce support for Perry-Sharp Plan

May 1, 2006

AUSTIN–Gov. Rick Perry today announced that 19 major healthcare associations, including the Texas Medical Association, have endorsed the Perry-Sharp property tax relief and school finance plan.

"These organizations represent thousands of Texas doctors, hospitals, nursing homes, pharmacists, optometrists, dentists, podiatrists and nurses across the state," Perry said. "And more than that, they speak with an experienced voice on behalf of millions of Texas patients."

Perry has worked with representatives of the Texas medical community to address their unique concerns as healthcare providers, and he said he will work with the legislature to improve his original proposal to address the medical community's concerns.

"Doctors and hospitals often have fixed costs when they treat a patient, especially when government is the payer," Perry said. "Government programs like Medicaid and CHIP do not allow them to recoup all of their expenses. Excluding these forms of revenue will help ensure that those who already incur great costs to care for needy Texans are treated fairly by the state business tax. And just as importantly, our hope is that these reforms will provide an incentive for more physicians to treat patients covered by these government programs."

Perry - Texas Tax Reform Commission report - March 2006 pdf - size - 635 kb

Perry - Major Healthcare groups support Perry-Sharp Plan article

Victims’ rights: Strength in unity

By Greg Abbott, Attorney General of Texas

April 28, 2006

National Crime Victims' Rights Week is April 23 through 29

AUSTIN – April 23 through 29 is National Crime Victims' Rights Week. Texas joins the nation this month in recognizing and honoring victims and survivors of violent crime. We often talk about the courage it takes for victims of abuse, domestic violence and other violent crimes to come forward and report the terrible offenses committed against them. This year's national theme of "Victims' Rights: Strength in Unity" embodies the combined efforts of advocacy groups, law enforcement officials, victim service providers and volunteers who are also touched by the courage of survivors.

Rebuilding lives damaged by the emotional, physical and financial aftermath of violence takes a unified approach. In 2004, the Texas Attorney General’s office provided more than $85 million in medical, funeral and counseling benefits for Texas crime victims. In addition to offering financial assistance to victims, my office was authorized by the Texas Legislature to distribute more than $36 million in grants to organizations that assist victims with emergency shelter, counseling, court accompaniment and other direct services for healing and recovery.

The importance of our partnerships with victim advocacy organizations and the local law enforcement community was evidenced in the case of a 32-year-old woman who was brutally attacked by her husband, a man who had prior convictions for extreme violence. A victim assistance liaison in the woman’s local sheriff’s department helped expedite the filing of her crime victim compensation claim, while a community domestic violence shelter provided her with temporary shelter. The Crime Victims’ Compensation Program within my office determined that the woman was eligible for relocation assistance, counseling and medical benefits. This unified effort allowed the woman to be safely relocated to another state and gave her the resources and support she needed to find a path to survival.

As part of the law enforcement community, I am deeply grateful for the collaborative spirit of police officers, county and district attorneys, and local prosecutors around the state who assist investigators in my office in protecting Texans from violent crimes.

For instance, the Cyber Crimes and Fugitive Units within my office have combined for more than 400 arrests of child sex predators with the help of local jurisdictions, as well as national organizations such as the National Center for Missing and Exploited Children.

The success rate of these two programs exemplifies how a unified front by all of us in law enforcement can help prevent children from becoming victims of sexual abuse or assault by rounding up parole violators, arresting sex offenders who have failed to meet Texas sex offender registration requirements, and punishing dangerous criminals who solicit unsuspecting children online.

The Crime Victim Services Division within my office is privileged to partner with crime victim advocates across Texas, including law enforcement officers, victim assistance coordinators, crime victim liaisons, counselors, sexual assault nurse examiners, and countless volunteers to deliver services to crime victims and their families with efficiency and respect.

This month, ceremonies and observances around the state will honor victims and survivors of crime. I encourage all Texans to participate in events within their communities to help promote "Victims' Rights: Strength in Unity." Together, we can win the fight for crime victims' rights and services and continue to assert the generous spirit that makes Texas great.

Government: Break the Silence - Make the Call (Domestic Violence) A list of area resources is at the end.

Abbott - Help for crime victims article

Rose Bowl boots won in a friendly wager between Gov. Rick Perry and California Gov. Arnold Schwarzenegger will be auctioned off at eBay April 28 to May 7. Proceeds will go to the Texas Disaster Relief Fund which has been helping families and communities as they recover from Hurricanes Rita and Katrina.

Gov. Perry announces online auction of Rose Bowl boots

Proceeds to benefit Texas Disaster Relief Fund

April 28, 2006

AUSTIN–Gov. Rick Perry today kicked-off an online auction of two pairs of hand-crafted boots donated in a Rose Bowl wager with California Governor Arnold Schwarzenegger. Proceeds of the 10-day, eBay-sponsored auction will benefit the Texas Disaster Relief Fund, which assists families and communities recovering from last year’s devastating hurricanes.

Before the Texas Longhorns’ historic Rose Bowl victory on Jan. 4, Perry offered Schwarzenegger custom-made calf-skin boots by noted Texas boot maker Justin Boots in a friendly wager. Schwarzenegger matched with a pair of his own horn-back leather boots and the governors agreed they would be auctioned together to benefit the winning governor’s designated charity.

Perry - Rose Bowl Boots Auction on eBay to benefit Texas hurricane victims

Attorney General Abbott announces Cyber Safety Town Hall meeting and obtains indictments against two Longview men for soliciting children online

Joe Alan Cook, Tommy Lynn Burt indicted on charges related to illicit use of Internet

From the Office of Greg Abbott, Attorney General of Texas

April 27, 2006

LONGVIEW—Texas Attorney General Greg Abbott and Gregg County District Attorney Bill Jennings obtained indictments against two Longview men for using the Internet to solicit a child for sex. Joe Alan Cook and Tommy Lynn Burt were indicted by a Longview grand jury April 20 on charges of criminal solicitation of a minor, attempted aggravated sexual assault of a child and attempted sexual performance by a child.

In both cases, the predators’ target was a person whom they thought was a 13-year-old girl they had met online. The “girl” was actually an undercover Cyber Crimes Unit investigator whom each of the offenders arranged to meet for sex at Longview apartment complexes.

“National statistics show that one of every five children will be solicited for sex while online,” Attorney General Abbott said. “Parents should be aware that predators can reach your child through Internet chatrooms, blogs and other social networking sites. Protecting Texas children from dangerous criminals takes a team approach, and I appreciate the cooperation of the Longview law enforcement officers who helped us capture these offenders.”

In response to the proliferation of online child predators, Attorney General Abbott and his top Cyber Crimes investigators will visit Tyler on May 11 for an interactive “cyber safety” town hall meeting that will arm parents with the tools they need to keep their children safer on the Internet. Attorney General Abbott and his investigators will outline the risks children face online, the environment teens face online, and the way child predators are using this emerging technology to find victims. The investigators will also offer information and safety tips about online predators and help parents decipher chatroom lingo.

“Web sites that kids frequent very often are also cruised by child predators,” Attorney General Abbott added. “Parents attending this event next month can benefit from the experiences of our investigators by learning how to protect their children from those who seek to take advantage of them online.”

The interactive presentation will provide the audience with an opportunity to ask questions, and attendees will also receive Attorney General Abbott’s new “Internet Safety for Parents” video, which offers advice and tangible safeguards to parents on how to spot the warning signs that their children may be giving out too much information to a potential child predator.

Date: 6:30 p.m. Thursday, May 11, 2006

Location: Tyler Junior College Wise Auditorium

1400 East Fifth Street (main campus address)

Tyler, Texas

To find out more about Attorney General Abbott’s efforts to crack down on sexual predators, visit the Attorney General’s Web site at www.oag.state.tx.us or call (800) 252-8011.

Abbott - Online Solicitation of Children and Tyler Cyber Safety Town Hall Meeting

Part 8 of Texas tax reform - Perry-Sharp Plan Wins Support of San Antonio Chamber, LULAC

April 25, 2006

AUSTIN–Gov. Rick Perry April 21 announced the Greater San Antonio Chamber of Commerce has endorsed the Perry-Sharp school finance and property tax cut plan with a unanimous executive committee vote; the League of United Latin American Citizens (LULAC) also added its voice to the long list of groups that support the plan.

Another Hispanic Endorsement Gov. Rick Perry announced April 18 that the Texas Association of Mexican-American Chambers of Commerce (TAMACC), has joined the long list of organizations that have endorsed the Perry-Sharp property tax relief and school finance plan. Perry also pointed out April 18 that Hispanic-owned businesses pump $40 billion into the Texas economy each year and provide jobs for millions of workers. Texas is now home to one in five Hispanic-owned businesses in America, and the number of Hispanic entrepreneurs is growing three times faster than the national average.

“I am pleased that the Greater San Antonio Chamber of Commerce, which speaks for 3,000 San Antonio- area businesses, has endorsed our plan to provide Texans $6 billion in property tax relief and a reliable source of funding for our schools,” Perry said. “Today the Chamber and LULAC join the chorus of organizations sending a clear message to the legislature: pass this fair, forward-looking tax plan because it provides immediate property tax relief and promotes continued economic growth into the future.”

In its statement of support, the San Antonio Chamber pointed out that the Perry-Sharp tax plan treats all sectors of the business community equitably.

“In my years in public service, I have never before seen a tax relief and reform plan with such overwhelming, bi-partisan support from business and civic communities across Texas. As more Texans speak out, our momentum is growing and the property tax relief Texans deserve is on the near horizon,” Perry said.

In the past few weeks, more than 60 business and civic organizations have endorsed the Perry-Sharp plan.

Perry - Texas Tax Reform Commission report - March 2006 pdf - size - 635 kb

Perry - Texas tax reform - Perry-Sharp Plan Wins Support of San Antonio Chamber and LULAC article

Attorney General Abbott’s open records administrator wins Open Doors Award

Hadassah Schloss honored for leadership in open government

April 24, 2006

AUSTIN—Texas Attorney General Greg Abbott praised Hadassah Schloss of his Open Records Division after she was presented with the Open Doors Award from the Fort Worth Professional Chapter of the Society of Professional Journalists.

The award was one of several presented as part of the group's annual First Amendment Awards recognizing journalists and other professionals in Texas and Oklahoma who are leaders in the field of open government and open records.

“An open government is essential to ensuring public confidence and accountability,” said Attorney General Abbott. “It’s no surprise to me that Hadassah was recognized with the Open Doors Award, but it’s gratifying that others have noticed her exceptional work as well. I thank her for her tremendous commitment to the people of Texas.”

Schloss joined the Texas Attorney General’s Office in August 2005 after serving as the Open Records liaison for the Texas Building and Procurement Commission. Coincidentally, the Executive Director at the time was Jim Muse, now the Attorney General’s Deputy for Administration.

Muse also commended Schloss for her service: “Hadassah has gained the utmost respect of countless state agency leaders and employees for her humorous and personable approach to teaching Open Records. I have known Hadassah for nearly seven years and congratulate her for this outstanding achievement.”

Abbott - Abbott’s open records administrator wins Open Doors Award

Texas Attorney General Greg Abbott honors Mothers Against Drunk Driving during National Crime Victims Rights Week

Applauds organization’s public awareness efforts to keep children safe

From the Office of Greg Abbott, Attorney General of Texas

April 20, 2006

AMARILLO—Texas Attorney General Greg Abbott joined Mothers Against Drunk Driving (MADD) in Amarillo April 18 to commemorate National Crime Victims Rights Week and to recognize MADD for its continued leadership and commitment to saving lives and preventing fatalities on America’s highways, curbing underage drinking, and strengthening victims’ rights. Attorney General Abbott was joined by Virginia Gonzalez, the West Texas Executive Director for MADD.

Some Key Points For children ages 2 to 14, motor vehicle crashes are the leading cause of death in the United States. Up to two-thirds of car accidents in which passenger children die are the direct result of a drunk driver. Nationally, 16,694 people were killed in alcohol-related motor vehicle crashes in 2004, accounting for 39% of all traffic-related deaths. In Texas, the number of alcohol-related accidents has dropped from 2,801 in 1982 to 1,642 in 2004. Texas is the deadliest state in the nation when it comes to DWI.

“The tireless work of MADD over the years has brought the tragedy of drunk driving to the forefront of the public, legislators, and prosecutors,” said Attorney General Abbott. “Alcohol-related deaths are down significantly in Texas, and I believe that steady decline can in large part be attributed to MADD’s advocacy in getting tougher consequences for offenders and heightening public awareness.

Unfortunately, Texas continues to be the deadliest state in the nation when it comes to DWI, making their continued work all the more important. I am honored to join MADD today in remembering victims of this violent crime and encourage all Texans to support continued efforts to end the tragic cycle of drunk driving.”

According to the National Highway Safety Transportation Administration, 16,694 people were killed nationally in alcohol-related motor vehicle crashes in 2004, accounting for 39% of all traffic-related deaths. In Texas, the number of alcohol-related accidents has dropped from 2,801 in 1982 to 1,642 in 2004; however, Texas remains the deadliest state in the nation when it comes to DWI.

In addition to the crime victim assistance grants, last year the Attorney General’s Crime Victim Services Division provided more than $85 million from the Fund directly to help victims pay for medical and out of pocket emergency expenses and other costs associated with the crimes committed against them. More information about the Crime Victim Services Division is available by calling (800)252-8011 or by visiting the Attorney General’s Web site: www.oag.state.tx.us

Abbott - Abbott honors Mothers Against Drunk Driving during National Crime Victims Rights Week

ERCOT, Part 5 of 5 - Attorney General Abbott obtains fourth guilty plea in electric reliability council of Texas white-collar crime scheme

Christopher Douglas agrees to repay over $500,000 to ERCOT and to testify at the April 24 trial of co-defendant Carlos Luquis

From the Office of Greg Abbott, Attorney General of Texas

April 19, 2006

GEORGETOWN—Texas Attorney General Greg Abbott April 12 obtained yet another guilty plea in an ongoing Williamson County case against six men under indictment for setting up an elaborate criminal enterprise in 2004 inside the Electric Reliability Council of Texas (ERCOT), the state’s electricity grid system.

Chris Douglas
senior manager

Christopher Douglas, 47, of Austin, pleaded guilty to two charges, one for engaging in organized criminal activity for misapplication of fiduciary property and one for theft. They are first-degree felonies, and he will also agree to repay ERCOT over $500,000 in illegal profits he obtained. Prosecutors have agreed to recommend no more than nine years in prison upon sentencing.

Abbott - Looking Back - Douglas enters fourth guilty plea in ERCOT crime ring case - Luquist to go on trial April 24- full article

ERCOT series, Looking Back - Parts 1 through 5 - in organized crime case

From the Office of Greg Abbott, Attorney General of Texas

April 14 through 19, 2006

Abbott - Looking Back - ERCOT organized crime case- full articles

Covers the activities of Christopher Douglas, senior manager; Kenneth Shoquist, chief information officer; John Cavazos, shell company security director; Chris Uranga, director of information technology operations and corporate security; Carlos Luquis, physical security; and Steven Wallace, program development director

Attorney General Abbott sues Midland debt collectors for harassing consumers

Danny and Pamela Becker and businesses violated various state laws

April 13, 2006

MIDLAND – Texas Attorney General Greg Abbott today sued Midland-based debt collection companies and their owners for engaging in widespread harassment of Texas consumers who were wrongly accused of owing debts. The harassment included threats to seize homes and possessions without court involvement.

“In Texas, we do not tolerate the harassment of innocent consumers who do not owe money on a debt,” said Attorney General Abbott. “Even those who are indebted and are paying off their obligations must be free from aggressive tactics and treated fairly. Today’s court action sends a clear message to businesses that conduct themselves in this manner.”

Business Office Systems and Solutions (BOSS) and owners Danny L. and Pamela Kay Becker used numerous unlawful, aggressive tactics after acquiring consumer accounts and debt originally belonging to Viatel Inc., a telecommunications company that filed for bankruptcy protection in Delaware in February 2002. A company known as Debt Acquisition Inc. of New York “purchased” Viatel’s debt and later “sold” it to Mapnad, a company created by the Beckers to contract with BOSS to collect on – and profit from – the outstanding Viatel debt.

BOSS and other businesses controlled by the Beckers targeted consumers who allegedly owed money to Viatel for long-distance telephone services. Most consumers had either satisfied the debt they owed years earlier, while others never received a bill while the company was in bankruptcy. Nonetheless, four years later they were being repeatedly pursued by the Beckers, who had inflated the “bills” with fees and interest.

Consumers who receive harassing calls or mail from debt collection companies about invalid debts may call the Attorney General’s toll-free complaint hotline at (800) 252-8011 or file a complaint online at www.oag.state.tx.us

Abbott - Midland debt collectors sued

Texas Attorney General Abbott: Debt collection

April 13, 2006

If You Owe a Debt

A consumer having difficulty paying a debt can contact the creditor before the bill goes to a collector. Sometimes the creditor will refinance or otherwise modify the agreement rather than pay a debt collector. If not, the debtor has certain rights.

Don't Pay Extra

It is unlawful for a debt collector to attempt to collect more than the amount originally agreed upon – whether the agreement was in writing or not. However, the debt may be increased by the addition of attorney's fees, investigation fees, service fees, collection fees, or other charges if a written contract authorizes the additional charges.

If You Disagree

If you dispute an item in the file a debt collector has on you, you should give the debt collector written notice. The debt collector must provide you with the necessary forms for the written notice, and must help you fill out the forms if you request it. The debt collector has 30 days after receiving your written request to determine whether or not the disputed item is correct. If it is incorrect, it must be corrected. The debt collector must notify anyone who has already received a report containing the incorrect item.

If, at the end of 30 days, the debt collector has not been able to determine whether the item is correct or not, he or she must make the change you requested and notify anyone who received a report containing the incorrect item. If it is later determined that the item was correct after all, you must be notified and collection efforts may be continued.

Harassment is Prohibited

State law prohibits the use of harassment and abusive collection tactics. It is illegal for any debt collector to:

• Threaten violence or other criminal acts;

• Use profane or obscene language;

• Falsely accuse the consumer of fraud or other crimes;

• Threaten arrest of the consumer, or repossession or other seizure of property without proper court proceedings;

• Use the telephone to harass debtors by calling anonymously or making repeated or continuous calls;

• Make collect telephone calls without disclosing the true name of the caller before the charges are accepted.

Fraud and Deception are Illegal

The use of fraudulent or deceptive practices is also prohibited, including:

• Using a false name or identification;

• Misrepresenting the amount of the debt or its judicial status;

• Sending documents to a debtor that falsely appear to be from a court or other official agency;

• Failing to identify who holds the debt;

• Misrepresenting the nature of the services rendered by the collection agency or the collector;

• Falsely representing that the collector has information or something of value in order to discover information about the consumer.

Your Home and Wages are Protected

Some collectors will threaten to foreclose on homesteads or to garnish wages. In Texas, a homestead cannot be taken to pay a debt except for debts taken for the purchase of the home, for home improvements, for home equity loans or to pay certain taxes. Wages may be garnished to pay court-ordered child support, back taxes, and defaulted student loans.

Violators Can be Penalized

Violators of the Texas Debt Collection Act are subject to criminal and civil penalties. Consumers who think they have been harassed or deceived may seek injunctions and damages against debt collectors.

These actions are also violations of the Texas Deceptive Trade Practices/ Consumer Protection Act which gives the Attorney General the authority to take action in the public interest.

Federal Law Regulates Collection Agencies

Texas statutes cover actions by anyone trying to collect a consumer debt. The federal law—the Fair Debt Collection Practices Act—applies only to collectors working for professional debt collection agencies and attorneys hired to collect a debt.

It is similar to Texas law, but also prohibits:

• Calls at work if the collector has reason to know the employer does not permit such calls;

• Calls before 8 a.m. or after 9 p.m. unless the collector knows such times are more convenient for the debtor;

• "Unfair or unconscionable means to collect or attempt to collect a debt;"

• Any conduct to harass, oppress, or abuse.

If you are being subjected to harassing, abusive, or fraudulent debt collection tactics by professional debt collectors, and you want to stop further contact with you, notify the collector in writing. Keep a copy of your letter and send the original to the debt collector by certified mail.

Abbott - Debt collection

Texas Attorney General Abbott: Debt collector threatens license suspension

April 13, 2006

AUSTIN, June 30, 2003—A central Texas woman complained to our office about a notice she received from a company purporting to be a collection agency. The company informed her that DPS was about to suspend her driver's license due to unpaid "damages" resulting from a car wreck the previous year, and offered to help her avoid license suspension - presumably by sending partial or full payment of the outstanding amount of almost $2000.

The consumer had never been in a car wreck and wisely contacted both DPS and the insurance company that allegedly handled the claim. Neither DPS nor the insurance company could verify the information, and the collection agency failed to produce evidence, even while continuing to threaten the consumer with the loss of her driving privileges.

Eventually the company backed down, claiming the debt was owed by another person with the same name.

Unethical debt collection agencies have been known to threaten all kinds of consequences that they cannot actually bring down on the consumer, even when the debt is legitimate.

For example, some collectors threaten to foreclose on homesteads or to garnishee wages. In Texas, a homestead cannot be taken to pay a debt unless the debt is from the purchase of the home, home improvements, home equity loans, or to pay certain taxes.

Wages may be garnisheed only to pay court-ordered child support, back taxes, or defaulted student loans.

The only debt for which you can lose your driver's license is court-ordered child support. For more information about what debt collectors may or may not do under state and federal law, see our online debt collection [link] page.

Consumers are also cautioned that whenever they are contacted about a debt they know nothing about, identity theft is a possibility to consider. For more information, visit the Attorney General's ID Theft page at http://www.oag.state.tx.us/consumer/idtheft.shtml .

Abbott - Debt collector - license suspension threatened

Part 7 of Texas tax reform - Texas' leading business group endorses tax plan

Governor says the Perry-Sharp tax plan could provide a $6 billion cut in property taxes

April 11, 2006

AUSTIN–Gov. Rick Perry today announced the Texas Association of Business, which represents more than 140,000 employers and millions of Texas workers, has endorsed the Perry-Sharp property tax relief and school finance plan.

“I am proud to welcome the state’s largest association of employers to the growing number of organizations, opinion leaders and lawmakers who have publicly endorsed our plan,” Perry said. “The support of the Texas Association of Business sends a clear signal that this plan is good for employers, good for workers, and good for the Texas economy. When you consider the diversity of TAB’s membership, this is a ringing endorsement of the fairness of this plan for all sectors of the economy.”

Perry said that if the legislature passes this plan, homeowners, businesses and the entire Texas economy will benefit from a record $6 billion property tax cut, which is the largest in Texas history.

“With record property tax relief, homeownership will become more affordable and the greatest impediment to job growth in Texas will be addressed,” Perry said. “Employers will benefit because our tax system will be fairer, the tax base will be broader, and the tax rate will be lower than today. Workers will benefit as employers act on new incentives that reward investments in salaries, healthcare coverage and pensions. And our entire economy will benefit as thousands of new jobs are created and as Texans take $1.5 billion in total tax savings and spend it at local establishments.”

The TAB endorsement adds to the plan’s momentum ahead of the special legislative session that will begin next week. Yesterday, the Corpus Christi Chamber of Commerce announced its support, calling it a creative plan to overhaul the current Texas business tax. Perry last week announced that nearly two dozen trade, education and taxpayer associations had endorsed the plan, representing 3 million Texans.

“With six days before the session starts, a clear consensus is emerging, and the outlook has never been better,” Perry said. “We have the right plan, a broad base of support, and mounting momentum that makes me optimistic our plan will win approval in both houses of the legislature.”

Gov. Perry - Leading Business Group Endorses Tax Plan Article

Perry - Texas Tax Reform Commission report - March 2006 pdf - size - 635 kb

Attorney General Abbott halts father/son real estate scam against homeowners

Trio operate Nebram Enterprises without real estate licenses; illegally solicit earnest money

From the Office of Greg Abbott, Attorney General of Texas

April 10, 2006

EL PASO—Texas Attorney General Greg Abbott has filed a court action to stop a father and his two sons who operate an unlicensed “real estate” business from illegally taking earnest money from potential homeowners when the properties offered for sale face imminent foreclosures.

The suit also freezes the assets of Nebram Enterprises, operated by Gilberto Romo and his sons, Edward and Paul Romo, and stops the trio from soliciting from money consumers for property they have no right to offer for sale. They must also obtain a proper license from the Texas Real Estate Commission (TREC) before conducting any further business in Texas.

“First-time homeowners should never have to navigate a gauntlet of scam artists in the pursuit of the American dream of home ownership,” said Attorney General Abbott. “Today’s court filing actually halted the imminent foreclosure of a home being purchased by innocent consumers in El Paso. This exploitation must stop.”

The Romos advertised Nebram Enterprises’ services in small publications around El Paso, claiming to offer homes for sale. The men are not licensed to sell homes, and many of the homes they selected to advertise for sale were facing foreclosure. Attorney General Abbott’s suit alleges the trio has been involved in transactions on at least 33 homes.

In some cases, the Romos represented themselves as owners of the homes, yet had no titles to them, having previously sold the homes to others without the present buyers’ knowledge. The customers who contacted them about the homes spoke little English and were persuaded to sign TREC earnest money contracts and pay agreed-upon amounts to hold the “sale” as pending.

In other cases, the Romos took earnest money from unwitting consumers yet never received a signed agreement from current homeowners that the sale was acceptable. The court action, for example, asks the court to compel the Romos to immediately refund earnest money taken from a prospective buyer in October in such a scheme.

The Attorney General’s lawsuit demands the refund of all illicitly obtained money from consumers, plus civil penalties of $20,000 per violation of the Texas Deceptive Trade Practices Act.

Abbott - Homeowners Scammed

Part 6 of Texas tax reform - Perry: Representatives of three million Texans endorse tax reform, relief

April 7, 2006

AUSTIN–Gov. Rick Perry today announced 23 associations representing some 3 million Texans have endorsed the Perry-Sharp tax reform and property tax relief plan. The diverse associations that have praised the plan – from manufacturers to restaurant owners – represent a broad cross section of the Texas economy.

“By publicly expressing their support for the commission’s tax reform and relief plan, these organizations have taken a bold stand in favor of a fairer business tax without loopholes, reliable funding for education, and $6 billion in property tax relief for Texas families and employers,” Perry said. “The message these associations join me in sending to the legislature is clear – this plan is the best plan, the best approach, and the best chance Texas has ever had to fix our school finance system and give property owners the tax relief they deserve.”

Perry thanked the association leaders for their support and said it was rare to see such a broad coalition of supporters unite around a single legislative proposal.

“If lawmakers join the members of the bipartisan commission and the millions of Texans who belong to the associations represented today, Texans will save $1.5 billion in their overall tax burden, and that includes families in every income bracket who don’t smoke,” Perry said.

While some have expressed concern that property tax rates as well as business tax rate could rise above the rates in the plan in future years, Perry noted that the same is true if lawmakers simply use the revenue surplus to buy down property taxes. Using the entire surplus to buy down taxes provides significantly less property tax relief for only one year and is a recipe either for a big tax hike next year or a return to sky-high school tax rates in the 2007 Tax Year, he said.

“If we don’t reform Texas taxes now, revenues from the franchise tax will drop dramatically as businesses restructure, and every interest group under the sun will come to this legislature next January hungry for a piece of a budgetary pie that is several billion dollars short of the needed ingredients,” Perry said.

Endorsement of the plan by so many associations, Perry added, indicates “a clear consensus is emerging, momentum for our plan is growing and victory for taxpayers and schoolchildren is on the near horizon.”

Among those backing the Perry-Sharp plan are manufacturers and service providers, retailers and realtors, education leaders and taxpayer advocates, and millions of Texans from all walks of life.

“I never thought I would see the day when members of the service sector joined members of the manufacturing community in support of the same tax reform plan,” Perry said. “This unique coalition of support is evidence that this tax reform proposal is the fairest plan yet to be offered to fund our schools and reform our tax structure.”

Groups supporting the plan include:

• American Forest and Paper Association

• Automotive Parts and Service Association

• Association of Chemical Industry of Texas

• Greater Houston Partnership

• Hispanics for Opportunity, Progress and Education

• Non Profits for Tax Fairness – Texas

• Texas Airline Association

• Texas Apartment Association

• Texas Association of Builders

• Texas Association of Manufacturers

• Texas Association of Realtors

• Texas Credit Union League

• Texas Chemical Council

• Texas Forest Industries Council

• Texas Industrial Areas Foundation Network

• Texas Motor Transportation Association

• Texas Oil & Gas Association

• Texas Restaurant Association

• Texas School Alliance

• Texas State Association of Firefighters

• Texas Taxpayers and Research Association

• Texas Trial Lawyers Association

• Wholesale Beer Distributors of Texas

Gov. Perry - Overhaul of Business Taxes Proposed Article

Perry - Texas Tax Reform Commission report - March 2006 pdf - size - 635 kb

Attorney General Abbott joins 46 state AGs in call for IRS to protect private tax return information

Abbott warns unlimited sharing of taxpayers' personal info would raise risk of ID theft

April 6, 2006

AUSTIN – Texas Attorney General Greg Abbott has joined 46 other state attorneys general in calling for the Internal Revenue Service (IRS) to limit the marketing of taxpayers' private tax return information by tax preparers. Abbott signed onto a letter submitted to the IRS by the National Association of Attorneys General (NAAG) expressing the group's concerns about the ramifications of proposed IRS regulations that broaden disclosure rules but impose few obligations on the recipients of such disclosed information to protect the security of the data.

"Identity theft is one of the fastest growing crimes in the United States," said Attorney General Abbott. "Tax returns contain a wealth of information that would be a goldmine for identity thieves and could cost taxpayers countless hours and resources trying to clear their names. The proposed IRS guidelines do not go far enough to safeguard that information once a taxpayer has consented to its use. I join my colleagues in supporting the limited use of tax return information and encouraging stronger incentives for third parties to protect taxpayers' confidential information."

Current regulations permit tax preparers to share tax return information with the consent of the taxpayer only for purposes related to tax preparation. For example, some taxpayers opt to have their tax return information used to evaluate their eligibility for certain financial products, such as a refund anticipation loan or a home mortgage.

Under the proposed rules, tax return information can be shared for one year with any third party, including marketing firms and other data brokers, if the taxpayer consents. The IRS draft provides some guidance on format and content of consent to disclose forms to ensure that taxpayer consent is "knowing and voluntary."

In their letter, Attorney General Abbott and other state attorneys general first recommended an outright ban on marketing and non-preparer use of tax return information, noting that allowing such sharing of information undercuts the government's goal of having taxpayers provide full and accurate information to their tax preparers. The state attorneys general also suggested several safeguards to ensure protection of that information, should the IRS proceed with the proposed regulations.

The state attorneys general urged the IRS to ensure that taxpayer consent is in fact "knowing and voluntary" by requiring the use of a mandated document, separate from other tax preparation forms, that meets specific formatting and content requirements in addition to those set out in the proposed regulations. NAAG suggested that the IRS regulations prohibit obtaining consent to multiple uses or multiple disclosures in the same document so that taxpayers do not unintentionally give "blanket consent" and lose control over what happens to their information.

Additionally, NAAG recommended that the consent form should advise the taxpayer that they are not required to disclose tax return information in order to obtain tax preparation or any other services. The proposed regulations should also be modified to prohibit tax preparers from making any service conditional on taxpayers' agreeing to share personal return information.

NAAG also strongly discouraged allowing for the disclosure of entire tax returns, instead suggesting that regulations prohibit a tax preparer from using or disclosing information from a tax return that is not required to obtain a product or service the taxpayer has specifically agreed to. For example, if the taxpayer consented to share tax return information to learn more about retirement accounts, the tax preparer should not be allowed to share the taxpayer's medical information or other information not relevant to the product.

NAAG also recommended that the IRS adopt provisions that would ban the use of lotteries, raffles, and other similar games as a way to entice taxpayers' into sharing their return information.

"Taxpayers entrust their tax return preparers with sensitive information and deserve responsible behavior in return," added Attorney General Abbott. "Proper safeguards can keep identity thieves at bay and give taxpayers secure access to the products and services in which they may be interested."

Other states signing onto the letter include Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.

The IRS met on April 4 to consider the proposed regulations.

Abbott - Tax Return Data Protection

Gov. Perry - State and local officials best in responding to disaster

Says Putting Federal Government in Charge Would Cost Lives, Add Bureaucracy

April 4, 2006

HOUSTON – With the start of the hurricane season just two months away, Gov. Rick Perry on April 3 said recent recommendations that the federal government assume primary control of disaster response is the wrong approach to take.

“If the federal government assumes control of first response to catastrophes, I believe it will add needless layers of bureaucracy, create indecisiveness, lead to rampant miscommunications and ultimately cost lives,” Perry said in an appearance with U.S. Sen. John McCain.

Perry said he applauds the federal government for undertaking a comprehensive review of its response during Hurricane Katrina but said the recommendation to federalize response would place too much authority into the hands of federal bureaucrats and force state and local officials to stand idly by while the lives of their citizens hang in the balance.

“Our firefighters, peace officers and EMS personnel are the ones who know their communities best,” Perry said. “They have done the emergency training exercises in those communities and they can respond the quickest to emergencies in their communities. To put it simply, when Texans dial 911, they need the phone to be picked up by an operator who knows their community, not someone at a switchboard in Washington, DC. ”

Perry said the federal government does have an important role in disaster response, but it is a supporting role that must center on supplying state and local leaders with the resources they need to do their job.

Perry said the most important reform the federal government can enact is to provide a single point of contact during a disaster so states do not have to navigate various bureaucratic mazes to get things done.

“What Texas needs most from the federal government now is less bureaucracy, more resources and a continued commitment to letting Texans run Texas,” he said.

Perry noted that next month, Texas will undertake a five-day training exercise to test our response capabilities on a statewide basis. The exercise will simulate a hurricane impacting the entire 367-mile Texas coastline.

Perry - Hurricane Preparedness