SRC-CDH H.B. 2324 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 2324
By: Allen (Whitmire)
Criminal Justice
5-17-97
Engrossed


DIGEST 

The multiple statutes governing prison industry within the Texas
Department of Criminal Justice (TDCJ) have become somewhat confusing and
internally contradictory.  In addition, despite the long-standing
existence of industry programs that do not yield an identifiable "article
of product," the law does not clearly allow inmates to engage in such
activities.  H.B. 2324 rearranges the statutes governing prison industry
in a more logical format, with Subchapter A containing the general
provisions, and Subchapter B focusing on sales of inmate-made goods.  In
addition, this bill repeals the TDCJ "direct purchase" statute; defines
"articles and products" to include inmate service activities; allows the
purchase of real property using the industrial revolving fund; gives the
Texas Board of Criminal Justice discretion as to whether to utilize an
Industry Advisory Committee; and amends the Penal Code to make it a felony
for an inmate to possess personal information gained by working in an
industry program.    

PURPOSE

As proposed, H.B. 2324 provides for the organization and operation of
certain prison industries in the Texas Department of Criminal Justice
(TDCJ), the Texas Youth Commission, and certain county correctional
facilities; establishes the organization and operation of TDCJ
agricultural and work programs; and provides penalties.    

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Texas Board of Criminal Justice in
SECTION 1 (Section 497.003(b), Government Code) and SECTION 4 (Section
497.113(b), Government Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapters 497A and B, Government Code, as follows:

SUBCHAPTER A.  TEXAS CORRECTIONAL INDUSTRIES

Sec. 497.001.  New heading:  TEXAS CORRECTIONAL INDUSTRIES; DEFINITIONS.
Provides that Texas Correctional Industries, rather than the prison
industries office, is an office in the Texas Department of Criminal
Justice (TDCJ).  Defines "office" and "articles and products."   

Sec. 497.002.  PURPOSE; IMPLEMENTATION.  Provides that the purposes of
Texas Correctional Industries (office) are to implement this subchapter
and Subchapter B to provide employment for the vocational training and
rehabilitation of inmates, consistent with proper correctional purposes;
use the labor of inmates for self-maintenance; reimburse the state for
expenses; provide for the requisition and disbursement of TDCJ article and
products through established state authorities; provide materials,
products, or articles for sale to the public, to private enterprises, or
to agencies of the state or political subdivisions of the state; and
develop and expand public and private prison industry operations.  Makes
conforming changes. 

Sec. 497.003.  ADVISORY COMMITTEE.  Authorizes the Texas Board of Criminal
Justice (board) to establish a prison industries advisory committee
(committee).  Requires the  committee to be composed of nine members
appointed by the board if the board establishes a committee.  Makes
conforming changes. 

Sec. 497.004.  INMATE LABOR, PAY.  Requires TDCJ to use inmate labor in
the prison industries, rather than in the prison industries program, to
the greatest extent feasible. Authorizes the board, by rule, to develop an
incentive pay scale for inmates who participate in prison industries, and
authorizes TDCJ to administer the pay scale.  Requires TDCJ to apportion
pay earned by an inmate in the same manner as is required by Section
497.051. Deletes existing text requiring TDCJ to apportion pay earned by
an inmate to certain persons and entities in amounts determined by TDCJ.
Makes conforming changes.     

Sec. 497.005.  INDUSTRIAL REVOLVING ACCOUNT.  Authorizes the legislature
to appropriate money to an industrial revolving account (account) in the
general revenue fund. Requires the office to administer the account, and
to use money in the account to purchase real property, erect buildings,
improve facilities, buy equipment and tools, install or replace equipment,
and buy industrial raw materials and supplies, among other items.
Requires the office to remit money received from the sale of articles and
products produced to the comptroller to be deposited in the account.  Sets
forth the terms by which the comptroller is required to transfer an excess
amount in the account to the unobligated portion of the general revenue
fund.  Provides that Section 403.095, Government Code, does not apply to
the account.  Deletes existing text regarding proceeds from prison
industries.   

Sec. 497.006.  New heading:  CONTRACTS WITH PRIVATE BUSINESS.  Authorizes
the prison industries office to enter into necessary contracts to produce
articles and products to be sold on the open market.  Deletes existing
text authorizing the prison industries office to enter into contracts
related to the prison industries program.  Requires a contract entered
into under this section to comply with the Private Sector/Prison Industry
Enhancement Certification Program.  Sets forth the method for determining
under Section 497.051 the number of inmates employed in conditional work
programs. 

Sec. 497.007.  GRANTS.  Makes a conforming change.

Sec. 497.008.  LEASE OF LAND.  Makes conforming changes.

Sec. 497.009.  CERTIFICATION FOR FRANCHISE TAX CREDIT.  Makes a conforming
change.      

Sec. 497.010.  OFFENSE:  SALE OR OFFER OF SALE OF PRISON-PRODUCED ARTICLES
OR PRODUCTS.  Provides that a person commits a Class B misdemeanor if the
person intentionally sells or offers to sell on the open market an article
or product the person knows was manufactured by an inmate of TDCJ or an
inmate in any correctional facility or reformatory institution in this
state or in any other state, with certain exceptions.  Deletes existing
text regarding the terms under which the prison industries office is
authorized to enter into a contract with certain private businesses. 

SUBCHAPTER B.  SALES OF PRISON-MADE ARTICLES OR PRODUCTS

Sec. 497.021.  New heading:  AUTHORITY.  Provides that this subchapter
governs the sale of prison-made products to governmental agencies.
Deletes the provision authorizing this subchapter to be cited as the
Prison Made Goods Act of 1963. 

Sec. 497.022.  CONTRACTS.  Authorizes TDCJ to contract with another state,
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 to contract with 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.
Deletes existing text regarding the purpose of this subchapter. 

Sec. 497.023.  PRIORITIES.  Deletes existing text, regarding rules
authorized to be adopted  by the board.  Requires the office to produce
products and articles under this subchapter and Subchapter A,  first to
fulfill the needs of agencies of the state and second to fulfill the needs
of political subdivisions or other purchasers.  Deletes existing text
regarding priorities, and former Section 497.025, regarding purchase of
equipment and supplies and employment of personnel. 

Sec. 497.024.  AGENCIES AND POLITICAL SUBDIVISIONS; DUTIES TO PURCHASE.
Makes conforming changes.  Redesignated from former Section 497.026. 

Sec. 497.025.  PURCHASING PROCEDURE.  Authorizes the purchase of articles
or products not included in an established contract and that do not exceed
the dollar limits established under Section 2155.132, rather than Section
3.08(a), Article 601b, V.T.C.S., to be acquired directly from the office
under certain circumstances.  Authorizes a political subdivision to
decline to purchase goods or articles from the office if the political
subdivision determines, after giving the office a final opportunity to
negotiate the price, that the goods or articles can be purchased elsewhere
at a lower price.  Deletes existing text providing that nothing herein
shall be interpreted to require the same.  Makes conforming changes.
Redesignated from former Section 497.027.  

Sec. 497.026.  PRICES.  Makes conforming and nonsubstantive changes.
Redesignated from former Section 497.028.  

Sec. 497.027.  SPECIFICATIONS.  Makes conforming changes.  Redesignated
from former Section 497.029. 

Sec. 497.028.  CATALOGS.  Makes conforming changes.  Redesignated from
former Section 497.030. 

Sec. 497.029.  NEW ARTICLES AND PRODUCTS.  Makes conforming changes.
Redesignated from former Section 497.031.  

Sec. 497.030.  GENERAL SERVICES COMMISSION REPORTS.  Deletes Section
497.033, regarding the industrial revolving fund; Section 497.034,
regarding surplus property and agricultural products; and Section 497.035,
regarding the offense of sale or offer of sale of prison produced articles
or products.  Makes conforming changes.  Redesignated from former Section
497.032. 

SECTION 2. Amends Section 497.051, Government Code, as follows:

Sec. 497.051.  New heading:  OVERSIGHT.  Requires the committee to
approve, certify, and oversee the operation of private sector prison
industries programs in TDCJ, the Texas Youth Commission, and in county
correctional facilities in compliance with the prison enhancement
certification program.  Deletes existing text regarding the administration
of a conditional work program. 

SECTION 3. Amends Section 497.091, Government Code, by adding Subsection
(d), to authorize TDCJ to contract with nonprofit organizations that
provide services to the general public and enhance social welfare and the
general well-being of the community to provide inmate labor to those
organizations. 

SECTION 4. Amends Chapter 497F, Government Code, by adding Section
497.113, as follows: 

Sec. 497.113.  SURPLUS AGRICULTURAL PROPERTY AND PRODUCTS.  Authorizes the
board to authorize the sale or disposal of surplus agricultural products
and personal property owned by TDCJ, other than products or property
produced for sale by TDCJ. Requires products and property to be sold under
rules adopted by the board and at prices and terms set pursuant to those
rules.  Authorizes TDCJ to use surplus agricultural capacity to provide
agricultural products to a nonprofit organization at no profit to TDCJ. 

 SECTION 5. Amends Section 38.111(a), Penal Code, to provide that an
inmate of the institutional division or a person confined in a state jail
felony facility commits an offense if, with intent to obtain a benefit or
with intent to harm or defraud another, the inmate or person possesses
information about another that the inmate or person has access to by means
of participation in a work program operated by or for the institutional
division or state jail division.   

SECTION 6. Repealer:  Section 496.051, Government Code (Purchasing
Procedures) and Section 1, Article 9007, V.T.C.S. (regarding the sale of
merchandise made by convicts or prisoners being prohibited). 

SECTION 7. Makes application of this Act prospective regarding Section
497.010, Government Code and Section 38.111, Penal Code. 

SECTION 8. Effective date:  September 1, 1997.

SECTION 9. Emergency clause.