H.B. No. 2839
AN ACT
relating to the participation of state inmates in the production of 
certain goods and the provision of certain services.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 497.022, Government Code, is amended to 
read as follows: 
	Sec. 497.022.  CONTRACTS.  The department may contract with:                   
		(1)  another state, the federal government, a foreign 
government, or an agency of any of those governments to manufacture 
for or sell to those governments prison-made articles or products; 
[or]
		(2)  a private or independent institution of higher 
education to manufacture for or sell to that school or institution 
prison-made articles or products; or
		(3)  a private school or a visually handicapped person 
in this state to manufacture Braille textbooks or other 
instructional aids for the education of visually handicapped 
persons.
	SECTION 2.  Section 497.006, Government Code, is amended to 
read as follows: 
	Sec. 497.006.  CONTRACTS WITH PRIVATE BUSINESS.  (a) To 
encourage the development and expansion of prison industries, the 
prison industries office may enter into necessary contracts related 
to the prison industries program.
	(b)  With the approval of the board, the office may enter 
into a contract with a private business to conduct a program on or 
off property operated by the department.  Except as provided by 
Subsection (c), a [A] contract entered into under this section must 
comply with all requirements of the Private Sector/Prison Industry 
Enhancement Certification Program operated by the Bureau of Justice 
Assistance and authorized by 18 U.S.C. Section 1761.  In 
determining under Section 497.062 the number of participants 
participating in private sector prison industries programs, the 
department shall count the number of work program participants 
participating in a program under a contract entered into under this 
section.  Not more than 500 work program participants may 
participate in programs under contracts entered into under this 
subsection [section].
	(c)  A contract for the provision of services under this 
section must:
		(1)  be certified by the Private Sector Prison 
Industries Oversight Authority as complying with all requirements 
of the Private Sector/Prison Industry Enhancement Certification 
Program operated by the Bureau of Justice Assistance and authorized 
by 18 U.S.C. Section 1761, other than a requirement relating to the 
payment of prevailing wages;
		(2)  be certified by the authority, under rules adopted 
under Section 497.059, that the contract would not cause the loss of 
existing jobs of a specific type provided by the contracting party 
in this state; and
		(3)  be approved by the board.                                         
	(d)  Not more than 500 work program participants may 
participate in programs under contracts entered into under 
Subsection (c).
	(e)  Section 497.058 does not apply to the payment of a work 
program participant participating in a program under a contract 
described by Subsection (c).
	SECTION 3.  Section 497.010(c), Government Code, is amended 
to read as follows:
	(c)  It is an exception to the application of this section 
that the article or product sold is:
		(1)  a state flag or similar item produced for sale or 
distribution by the legislature under Section 301.034; or
		(2)  a service provided under a contract for which the 
Private Sector/Prison Industry Enhancement Certification Program 
operated by the Bureau of Justice Assistance and authorized by 18 
U.S.C. Section 1761 does not require certification.
	SECTION 4.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2005.
______________________________              ______________________________
 
   President of the Senate                               Speaker of the House      
	I certify that H.B. No. 2839 was passed by the House on May 
10, 2005, by a non-record vote.
                                                  ______________________________
                                                     Chief Clerk of the House   
	I certify that H.B. No. 2839 was passed by the Senate on May 
25, 2005, by the following vote:  Yeas 31, Nays 0.
                                                  ______________________________
                                                     Secretary of the Senate    
APPROVED:  _____________________                                            
 
                   Date                                                      
 
          _____________________                                          
 
                 Governor