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.