SGN H.B. 1301 75(R)BILL ANALYSIS CORRECTIONS H.B. 1301 By: Allen 3-12-97 Committee Report (Unamended) BACKGROUND Since 1993 the Texas Department of Criminal Justice has had a pilot program in Lockhart, Texas that allows inmates to work for private sector corporations within the walls of the prison, earning a prevailing wage. A portion of the inmate's wages is used to help pay for the cost of incarceration, restitution to their victims, the Crime Victims' Compensation Fund and dependant support. This program is authorized by state and federal law, and as a result of recent guidelines put in place by the federal government, Texas must comply with all regulations regarding the Prison Industries Enhancement Program. Since the program's inception in 1993, inmates have paid more than $3 million toward the state, crime victims and inmate family members. PURPOSE To create an oversight authority to be called the Private Sector Prison Industries Oversight Authority, which will approve, certify, and oversee the operation of private sector prison industries programs in Texas. The authority will address concerns of displaced workers as a result of inmate employment and will ensure that Texas remains in compliance with the federal prison enhancement certification program. RULEMAKING AUTHORITY It is the committee's opinion that this bill expressly grants rulemaking authority in SECTION 1, Subchapter C, Sec. 497.056, Government Code, to the Private Sector Prison Industries Oversight Authority by rule to adopt a method of determining the amount and payment schedule of fees owed by an industry. In SECTION 1, Sec. 497.057, Government Code, to the Authority to adopt rules to ensure that the private sector prison industries program is in compliance with the federal program. In SECTION 1, Sec. 497.058, Government Code, the Authority by rule shall require that inmate employees of this program are paid not less than the prevailing wage as computed by the Authority. In SECTION 1, Sec. 497.060, Government Code, the Authority by rule shall require private sector prison industries program employers to meet or exceed all federal requirements for providing workers' compensation. The Authority is required to adopt these rules by March 1, 1998. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter C, Chapter 497, Government Code as follows: SUBCHAPTER C. PRIVATE SECTOR PRISON INDUSTRIES OVERSIGHT AUTHORITY Sec. 497.051. PURPOSE; DEFINITION. (a) Creates the Private Sector Prison Industries Oversight Authority to approve, certify, and oversee the operation of private sector prison industries programs in the department in compliance with the federal prison enhancement certification program established under 18 U.S.C. Section 1761. Requires the executive director to provide the authority with clerical and technical support and ensure that the department implements the policies adopted by the authority that relate to the operation of private sector prison industries programs. (b) In this subchapter, "authority" means the Private Sector Prison Industries Oversight Authority. Sec. 497.052. MEMBERSHIP. (a) Provides that the authority is composed of nine members appointed by the governor: one representative of labor; one representative of employers; one representative of groups advocating the rights of victims of criminal offenses; one representative of groups advocating the rights of inmates; one who is experienced in the field of vocational rehabilitation; one who is an employer in the private sector prison industries program that is certified as in compliance with the federal prison enhancement certification program; and three public members. (b) Requires the governor to appoint the representative of labor from a list of three persons recommended by a recognized state labor federation, except that if the labor federation fails to recommend at least three persons, the governor may appoint any wage earner as the labor representative. (c) Requires the following individuals serve as ex-officio members of the authority: a member of the house of representatives designated by the speaker of the house; a member of the senate designated by the lieutenant governor; the executive director of the Texas Department of Criminal Justice or their designee; and the executive director of the Texas Workforce Commission or their designee. Sec. 497.053. TERMS. Provides that appointed members of the authority serve staggered sixyear terms, with three members' terms expiring on February 1 of each odd-numbered year. Sec. 497.054. PRESIDING OFFICER. Requires the governor to designate the presiding officer from among the members of the authority to serve at the pleasure of the governor. Sec. 497.055. REIMBURSEMENT. Provides that a member of the authority is not entitled to compensation, but is entitled to reimbursement of travel expenses incurred while on business of the authority. Sec. 497.056 PRIVATE SECTOR PRISON INDUSTRIES OVERSIGHT ACCOUNT. (a) Requires a private sector prison industries program to make an annual payment to the authority in an amount equal to the amount of money the program would pay that year for unemployment insurance if the employees of the program were engaged in non-prison employment. (b) Requires the authority to forward the fees collected to the comptroller. Requires the comptroller to deposit the fees in a private sector prison industries oversight account in the general revenue fund. Provides that funds may only be appropriated from this account for the purpose of paying the costs of the authority and the department in implementing this subchapter. Requires the comptroller, at the end of each fiscal year, to transfer any excess funds in the account to the state treasury to the credit of the crime victims compensation fund. (c) Requires the authority by rule to adopt a method for determining the amount of the fee owed by an industry under this section and a schedule for the payment of fees under this section. Sec. 497.057. RULES. Requires the authority to adopt rules to ensure that the program is in compliance with the federal prison enhancement certification program. Sec. 497.058. PREVAILING WAGE. (a) Requires the authority by rule to require that inmate employees at each private sector prison industries program be paid not less than the prevailing wage as computed by the authority, except that the authority may permit employers to pay an employee the minimum wage for the twomonth period beginning on the date employment begins. (b) Provides that for the purposes of computation, the prevailing wage is the wage paid for work of a similar nature in the location in which the work is performed; work of a similar nature is determined by openings and wages by occupation data collected by the economic research and analysis department of the Texas Workforce Commission; and the location in which work is performed is the council of government region in which the work is performed. Sec. 497.059. LIMITING IMPACT ON NON-PRISON INDUSTRY. Provides that the authority may not grant initial certification to a program if they have determined that the operation of the program would result in the loss of existing jobs provided by the employer in this state. Sec. 497.060. WORKERS' COMPENSATION. Requires the authority, by rule, to require private sector prison industries program employers to meet or exceed all federal requirements for providing compensation to inmates injured while working. Sec. 497.061. RECIDIVISM STUDIES. Requires the authority, with the cooperation of the Criminal Justice Policy Council, to gather data to determine whether participation in a private sector prison industries program is a factor that reduces recidivism among inmates. Sec. 497.062. LIMITATION ON NUMBER OF PARTICIPANTS. Allows the authority to certify any number of private sector prison industries programs but may not permit more than 3,000 inmates to participate in the program at any one time. SECTION 2. Amends Section 8A, Article 42.18, Code of Criminal Procedure, by adding Subsection (g) as follows: (g) When determining whether to require an inmate to reside in a county in which the inmate has a verified job offer, if the employer making the job offer states to the parole panel that the job offer results from the inmate's participation in a private sector prison industries program, the panel shall require the inmate to reside in the county in which the job offer exists, unless to do so would pose a threat to the life or safety of a victim of the defendant's offense, a witness in the case, or any other person. SECTION 3. (a) Initial appointments and terms. (b) Requires the Private Sector Prison Industries Oversight Authority to adopt the rules they are required to adopt by March 1, 1998. SECTION 4. Transition clause. SECTION 5. Effective date: September 1, 1997. SECTION 6. Emergency clause.