1-1                                   AN ACT

 1-2     relating to the oversight of the private sector prison industries

 1-3     program.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subchapter C, Chapter 497, Government Code, is

 1-6     amended to read as follows:

 1-7     SUBCHAPTER C. PRIVATE SECTOR PRISON INDUSTRIES OVERSIGHT AUTHORITY

 1-8                             [WORK PROGRAM PLAN]

 1-9           Sec. 497.051. PURPOSE; DEFINITION [WORK PROGRAM PLAN].

1-10     (a)  The Private Sector Prison Industries Oversight Authority is

1-11     created to approve, certify, and oversee the operation of private

1-12     sector prison industries programs in the department, the Texas

1-13     Youth Commission, and in county correctional facilities in

1-14     compliance [shall establish policies for the administration of a

1-15     conditional work program that may employ not more than 500 male and

1-16     female work program residents.  The policies must include a work

1-17     program contract that includes an agreement by the resident to

1-18     contribute from the wages received by the resident for the

1-19     resident's participation in private industry employment a

1-20     percentage of the wages, in accordance with rules adopted by the

1-21     board to comply] with the federal prison enhancement certification

1-22     program established under 18 U.S.C.  Section 1761[, and a

1-23     percentage of the wages for:]

1-24                 [(1)  costs of supervision;]

 2-1                 [(2)  restitution to the victim or victims of the

 2-2     resident; and]

 2-3                 [(3)  savings to be retained for the resident in a

 2-4     designated account for the resident's benefit and receipt on

 2-5     release].  The executive director shall provide the authority with

 2-6     clerical and technical support as necessary for the authority to

 2-7     perform duties imposed on the authority by this subchapter and

 2-8     shall ensure that the department implements the policies adopted by

 2-9     the authority that relate to the operation of private sector prison

2-10     industries programs.

2-11           (b)  In this [This] subchapter, "authority" means the Private

2-12     Sector Prison Industries Oversight Authority [does  not restore in

2-13     whole or in part the civil rights of a work program resident.]

2-14           [(c)  A work program resident employed under this subchapter

2-15     is not subject to workers' compensation laws, and the resident and

2-16     the resident's beneficiaries may not receive compensation under

2-17     those laws, except that a private industry may provide workers'

2-18     compensation benefits to a resident and a resident's beneficiaries

2-19     as necessary to certify a work program operated by the industry as

2-20     a work pilot project described in  18 U.S.C. Section 1761].

2-21           Sec. 497.052.  MEMBERSHIP.  (a)  The authority is composed of

2-22     nine members appointed by the governor:

2-23                 (1)  one of whom is representative of organized labor;

2-24                 (2)  one of whom is representative of employers;

2-25                 (3)  one of whom is representative of groups advocating

2-26     the rights of victims of criminal offenses;

2-27                 (4)  one of whom is representative of groups advocating

 3-1     the rights of inmates;

 3-2                 (5) one of whom is experienced in the field of

 3-3     vocational rehabilitation;

 3-4                 (6)  one of whom is an employer in the private sector

 3-5     prison industries program that is certified as in compliance with

 3-6     the federal prison enhancement certification program established

 3-7     under 18 U.S.C. Section 1761; and

 3-8                 (7)  three of whom are public members.

 3-9           (b)  The following individuals shall serve as ex officio

3-10     members of the authority:

3-11                 (1)  a member of the house of representatives

3-12     designated by the speaker of the house;

3-13                 (2)  a member of the senate designated by the

3-14     lieutenant governor;

3-15                 (3)  the executive director of the Texas Department of

3-16     Criminal Justice or the designee of the executive director;

3-17                 (4)  the executive director of the Texas Workforce

3-18     Commission or the designee of the executive director; and

3-19                 (5)  the executive director of the Texas Youth

3-20     Commission or the designee of the executive director.

3-21           Sec. 497.053.  TERMS.  Appointed members of the authority

3-22     serve staggered six-year terms, with three members' terms expiring

3-23     on  February 1 of each odd-numbered year.

3-24           Sec. 497.054.  PRESIDING OFFICER.  The governor shall

3-25     designate the presiding officer from among the members of the

3-26     authority, and the presiding officer shall serve in that capacity

3-27     at the pleasure of the governor.

 4-1           Sec. 497.055.  REIMBURSEMENT.  A member of the authority is

 4-2     not entitled to compensation but is entitled to reimbursement of

 4-3     the travel expenses incurred by the member while conducting the

 4-4     business of the authority as provided in the General Appropriations

 4-5     Act.

 4-6           Sec. 497.056.  PRIVATE SECTOR PRISON INDUSTRIES OVERSIGHT

 4-7     ACCOUNT.  (a)  A private sector prison industries program shall

 4-8     make an annual payment to the authority in an amount equal to the

 4-9     amount of money the program would pay during that year for

4-10     unemployment insurance if the employees of the program were engaged

4-11     in non-prison employment.

4-12           (b)  The authority shall forward fees collected under this

4-13     section to the comptroller.  The comptroller shall deposit the fees

4-14     to the credit of an account in the general revenue fund to be known

4-15     as the private sector prison industries oversight account.  The

4-16     legislature may appropriate funds from the account only for the

4-17     purpose of paying the costs of the authority and the department in

4-18     implementing this subchapter.  At the end of each fiscal year, the

4-19     comptroller shall transfer the excess funds in the account to the

4-20     state treasury to the credit of the crime victims compensation

4-21     fund.

4-22           (c)  The authority by rule shall adopt a method for

4-23     determining the amount of the fee owed by an industry under this

4-24     section and  a schedule for the payment of fees under this section.

4-25           Sec. 497.057.  RULES.  The authority shall adopt rules as

4-26     necessary to ensure that the private sector prison industries

4-27     program authorized by this subchapter is in compliance with the

 5-1     federal prison enhancement certification program established under

 5-2     18 U.S.C. 1761.

 5-3           Sec. 497.058.  PREVAILING WAGE.  (a)  The authority by rule

 5-4     shall require that inmate employees at each private sector prison

 5-5     industries program are paid not less than the prevailing wage as

 5-6     computed by the authority, except that the authority may permit

 5-7     employers to pay an employee the  minimum wage for the two-month

 5-8     period beginning on the date employment begins.

 5-9           (b)  For the purposes of computations required by this

5-10     section:

5-11                 (1)  the  prevailing wage is the wage paid for work of

5-12     a similar nature in the location  in which the work is performed;

5-13                 (2)  work of a similar nature is determined by openings

5-14     and wages by occupation data collected by the economic research and

5-15     analysis department of the Texas Workforce Commission; and

5-16                 (3)  the location in which work is performed is the

5-17     council of government region in which the work is performed.

5-18           Sec. 497.0581.  INMATE CONTRIBUTIONS.  The authority by rule

5-19     shall require an inmate to contribute a percentage of the wages

5-20     received by the inmate under this subchapter to be deposited in the

5-21     private sector prison industries oversight account.  In

5-22     establishing the percentage of the wages required to be contributed

5-23     by inmates under this section, the authority shall ensure that the

5-24     percentage does not place the private sector prison industries

5-25     programs in the department in noncompliance with the federal prison

5-26     enhancement certification program established under 18 U.S.C.

5-27     Section 1761.

 6-1           Sec. 497.059.  LIMITING IMPACT ON NON-PRISON INDUSTRY.  The

 6-2     authority may not grant initial certification to a private sector

 6-3     prison industries program if the authority determines that the

 6-4     operation of the program would result in the loss of existing jobs

 6-5     provided by the employer in this state.

 6-6           Sec. 497.060.  WORKERS' COMPENSATION.  The authority by rule

 6-7     shall require private sector prison industries program employers to

 6-8     meet or exceed all federal requirements for providing compensation

 6-9     to inmates  injured while working.

6-10           Sec. 497.061.  RECIDIVISM STUDIES.  The authority, with the

6-11     cooperation of the Criminal Justice Policy Council, shall gather

6-12     data to determine whether participation in a private sector prison

6-13     industries program is a factor that reduces recidivism among

6-14     inmates.

6-15           Sec. 497.062.  LIMITATION ON NUMBER OF PARTICIPANTS.  The

6-16     authority may  certify any number of private sector prison

6-17     industries programs that meet or exceed the requirements of federal

6-18     law and the rules of the authority, but in no event may the

6-19     authority permit more than 1,500 inmates to participate in the

6-20     program at any one time.

6-21           SECTION 2.  (a)  The initial appointments of the members of

6-22     the Private Sector Prison Industries Oversight Authority, as

6-23     required by Section 497.052, Government Code, as added by this Act,

6-24     are as provided by this  section.  On or before January 1, 1998,

6-25     the governor shall appoint the initial authority members.  Of the

6-26     initial public members, the  governor shall appoint one to serve a

6-27     term expiring February 1, 1999, one to serve a term expiring

 7-1     February 1, 2001, and one to serve a term expiring February 1,

 7-2     2003, and of the nonpublic members, the governor shall appoint two

 7-3     to serve terms expiring February 1, 1999, two to serve  terms

 7-4     expiring February 1, 2001, and two to serve terms expiring February

 7-5     1, 2003.  On expiration of those terms, the term of a member of the

 7-6     authority is  six years, as provided by Section 497.053, Government

 7-7     Code.

 7-8           (b)  The Private Sector Prison Industries Oversight Authority

 7-9     by March 1, 1998, shall adopt the rules that the authority is

7-10     required to adopt under Subchapter C, Chapter 497, Government Code,

7-11     as amended by this Act.

7-12           SECTION 3.  On January 1, 1998, the powers, duties, and

7-13     obligations of the Texas Department of Criminal Justice to oversee

7-14     the private sector prison industries program authorized by

7-15     Subchapter C, Chapter 497, Government Code, are transferred to the

7-16     Private Sector Prison Industries Oversight Authority, as are any

7-17     funds appropriated to the department for oversight of the program.

7-18     On transfer of oversight authority and appropriated funds, the

7-19     remaining duties of the department in regard to the program are as

7-20     described by Subchapter C, Chapter 497, as amended by this Act.

7-21           SECTION 4.  Notwithstanding Section 497.051(a), Government

7-22     Code, as amended by this Act, the Private Sector Prison Industries

7-23     Oversight Authority is not authorized to approve, certify, or

7-24     oversee the operations of a private sector prison industries

7-25     program operated on the effective date of this Act under a

7-26     provisional certificate issued before January 1, 1993, under 18

7-27     U.S.C.  Section 1761.

 8-1           SECTION 5.  This Act takes effect September 1, 1997.

 8-2           SECTION 6.  The importance of this legislation and the

 8-3     crowded condition of the calendars in both houses create an

 8-4     emergency and an imperative public necessity that the

 8-5     constitutional rule requiring bills to be read on three several

 8-6     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 1301 was passed by the House on April

         9, 1997, by a non-record vote; that the House refused to concur in

         Senate amendments to H.B. No. 1301 on May 28, 1997, and requested

         the appointment of a conference committee to consider the

         differences between the two houses; and that the House adopted the

         conference committee report on H.B. No. 1301 on May 31, 1997, by a

         non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 1301 was passed by the Senate, with

         amendments, on May 24, 1997, by a viva-voce vote; at the request of

         the House, the Senate appointed a conference committee to consider

         the differences between the two houses; and that the Senate adopted

         the conference committee report on H.B. No. 1301 on May 31, 1997,

         by a viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor