1-1     By:  Allen, Culberson (Senate Sponsor - Whitmire)     H.B. No. 1301

 1-2           (In the Senate - Received from the House April 10, 1997;

 1-3     April 11, 1997, read first time and referred to Committee on

 1-4     Criminal Justice; May 15, 1997, reported favorably, as amended, by

 1-5     the following vote:  Yeas 6, Nays 0; May 15, 1997, sent to

 1-6     printer.)

 1-7     COMMITTEE AMENDMENT NO. 1                             By:  Whitmire

 1-8     Amend HB 1301 as follows:

 1-9     On page   , line    after "director;" add a new (4) as follows:

1-10     "(4)  The executive director of the Texas Youth Commission or the

1-11     designee of the executive director."

1-12     Renumber subsequent sections accordingly.

1-13     COMMITTEE AMENDMENT NO. 2                                 By:  West

1-14     Amend the engrossed version of House Bill 1301 as follows:

1-15     Delete SECTION 2 of the bill in its entirety.

1-16                            A BILL TO BE ENTITLED

1-17                                   AN ACT

1-18     relating to the oversight of the private sector prison industries

1-19     program.

1-20           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-21           SECTION 1.  Subchapter C, Chapter 497, Government Code, is

1-22     amended to read as follows:

1-23     SUBCHAPTER C. PRIVATE SECTOR PRISON INDUSTRIES OVERSIGHT AUTHORITY

1-24                             [WORK PROGRAM PLAN]

1-25           Sec. 497.051. PURPOSE; DEFINITION [WORK PROGRAM PLAN].

1-26     (a)  The Private Sector Prison Industries Oversight Authority is

1-27     created to approve, certify, and oversee the operation of private

1-28     sector prison industries programs in the department, the Texas

1-29     Youth Commission, and in county correctional facilities in

1-30     compliance [shall establish policies for the administration of a

1-31     conditional work program that may employ not more than 500 male and

1-32     female work program residents.  The policies must include a work

1-33     program contract that includes an agreement by the resident to

1-34     contribute from the wages received by the resident for the

1-35     resident's participation in private industry employment a

1-36     percentage of the wages, in accordance with rules adopted by the

1-37     board to comply] with the federal prison enhancement certification

1-38     program established under 18 U.S.C.  Section 1761[, and a

1-39     percentage of the wages for:]

1-40                 [(1)  costs of supervision;]

1-41                 [(2)  restitution to the victim or victims of the

1-42     resident; and]

1-43                 [(3)  savings to be retained for the resident in a

1-44     designated account for the resident's benefit and receipt on

1-45     release].  The executive director shall provide the authority with

1-46     clerical and technical support as necessary for the authority to

1-47     perform duties imposed on the authority by this subchapter and

1-48     shall ensure that the department implements the policies adopted by

1-49     the authority that relate to the operation of private sector prison

1-50     industries programs.

1-51           (b)  In this [This] subchapter, "authority" means the Private

1-52     Sector Prison Industries Oversight Authority [does  not restore in

1-53     whole or in part the civil rights of a work program resident.]

1-54           [(c)  A work program resident employed under this subchapter

1-55     is not subject to workers' compensation laws, and the resident and

1-56     the resident's beneficiaries may not receive compensation under

1-57     those laws, except that a private industry may provide workers'

1-58     compensation benefits to a resident and a resident's beneficiaries

1-59     as necessary to certify a work program operated by the industry as

1-60     a work pilot project described in  18 U.S.C. Section 1761].

1-61           Sec. 497.052.  MEMBERSHIP.  (a)  The authority is composed of

1-62     nine members appointed by the governor:

1-63                 (1)  one of whom is representative of labor;

1-64                 (2)  one of whom is representative of employers;

 2-1                 (3)  one of whom is representative of groups advocating

 2-2     the rights of victims of criminal offenses;

 2-3                 (4)  one of whom is representative of groups advocating

 2-4     the rights of inmates;

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

 2-6     vocational rehabilitation;

 2-7                 (6)  one of whom is an employer in the private sector

 2-8     prison industries program that is certified as in compliance with

 2-9     the federal prison enhancement certification program established

2-10     under 18 U.S.C. Section 1761; and

2-11                 (7)  three of whom are public members.

2-12           (b)  The governor shall appoint the representative of labor

2-13     from a list of three persons recommended by a recognized state

2-14     labor federation, except that if the labor federation fails to

2-15     recommend at least three persons, the governor may appoint any wage

2-16     earner of the governor's choice as the labor representative.

2-17           (c)  The following individuals shall serve as ex officio

2-18     members of the authority:

2-19                 (1)  a member of the house of representatives

2-20     designated by the speaker of the house;

2-21                 (2)  a member of the senate designated by the

2-22     lieutenant governor;

2-23                 (3)  the executive director of the Texas Department of

2-24     Criminal Justice or the designee of the executive director; and

2-25                 (4)  the executive director of the Texas Workforce

2-26     Commission or the designee of the executive director.

2-27           Sec. 497.053.  TERMS.  Appointed members of the authority

2-28     serve staggered six-year terms, with three members' terms expiring

2-29     on  February 1 of each odd-numbered year.

2-30           Sec. 497.054.  PRESIDING OFFICER.  The governor shall

2-31     designate the presiding officer from among the members of the

2-32     authority, and the presiding officer shall serve in that capacity

2-33     at the pleasure of the governor.

2-34           Sec. 497.055.  REIMBURSEMENT.  A member of the authority is

2-35     not entitled to compensation but is entitled to reimbursement of

2-36     the travel expenses incurred by the member while conducting the

2-37     business of the authority as provided in the General Appropriations

2-38     Act.

2-39           Sec. 497.056.  PRIVATE SECTOR PRISON INDUSTRIES OVERSIGHT

2-40     ACCOUNT.  (a)  A private sector prison industries program shall

2-41     make an annual payment to the authority in an amount equal to the

2-42     amount of money the program would pay during that year for

2-43     unemployment insurance if the employees of the program were engaged

2-44     in non-prison employment.

2-45           (b)  The authority shall forward fees collected under this

2-46     section to the comptroller.  The comptroller shall deposit the fees

2-47     to the credit of an account in the general revenue fund to be known

2-48     as the private sector prison industries oversight account.  The

2-49     legislature may appropriate funds from the account only for the

2-50     purpose of paying the costs of the authority and the department in

2-51     implementing this subchapter.  At the end of each fiscal year, the

2-52     comptroller shall transfer the excess funds in the account to the

2-53     state treasury to the credit of the crime victims compensation

2-54     fund.

2-55           (c)  The authority by rule shall adopt a method for

2-56     determining the amount of the fee owed by an industry under this

2-57     section and  a schedule for the payment of fees under this section.

2-58           Sec. 497.057.  RULES.  The authority shall adopt rules as

2-59     necessary to ensure that the private sector prison industries

2-60     program authorized by this subchapter is in compliance with the

2-61     federal prison enhancement certification program established under

2-62     18 U.S.C. 1761.

2-63           Sec. 497.058.  PREVAILING WAGE.  (a)  The authority by rule

2-64     shall require that inmate employees at each private sector prison

2-65     industries program are paid not less than the prevailing wage as

2-66     computed by the authority, except that the authority may permit

2-67     employers to pay an employee the  minimum wage for the two-month

2-68     period beginning on the date employment begins.

2-69           (b)  For the purposes of computations required by this

 3-1     section:

 3-2                 (1)  the  prevailing wage is the wage paid for work of

 3-3     a similar nature in the location  in which the work is performed;

 3-4                 (2)  work of a similar nature is determined by openings

 3-5     and wages by occupation data collected by the economic research and

 3-6     analysis department of the Texas Workforce Commission; and

 3-7                 (3)  the location in which work is performed is the

 3-8     council of government region in which the work is performed.

 3-9           Sec. 497.0581.  INMATE CONTRIBUTIONS.  The authority by rule

3-10     shall require an inmate to contribute a percentage of the wages

3-11     received by the inmate under this subchapter to be deposited in the

3-12     private sector prison industries oversight account.  In

3-13     establishing the percentage of the wages required to be contributed

3-14     by inmates under this section, the authority shall ensure that the

3-15     percentage does not place the private sector prison industries

3-16     programs in the department in noncompliance with the federal prison

3-17     enhancement certification program established under 18 U.S.C.

3-18     Section 1761.

3-19           Sec. 497.059.  LIMITING IMPACT ON NON-PRISON INDUSTRY.  The

3-20     authority may not grant initial certification to a private sector

3-21     prison industries program if the authority determines that the

3-22     operation of the program would result in the loss of existing jobs

3-23     provided by the employer in this state.

3-24           Sec. 497.060.  WORKERS' COMPENSATION.  The authority by rule

3-25     shall require private sector prison industries program employers to

3-26     meet or exceed all federal requirements for providing compensation

3-27     to inmates  injured while working.

3-28           Sec. 497.061.  RECIDIVISM STUDIES.  The authority, with the

3-29     cooperation of the Criminal Justice Policy Council, shall gather

3-30     data to determine whether participation in a private sector prison

3-31     industries program is a factor that reduces recidivism among

3-32     inmates.

3-33           Sec. 497.062.  LIMITATION ON NUMBER OF PARTICIPANTS.  The

3-34     authority may  certify any number of private sector prison

3-35     industries programs that meet or exceed the requirements of federal

3-36     law and the rules of the authority, but in no event may the

3-37     authority permit more than 3,000 inmates to participate in the

3-38     program at any one time.

3-39           SECTION 2.  Section 8A, Article 42.18, Code of Criminal

3-40     Procedure, is amended by adding Subsection (g) to read as follows:

3-41           (g)  In determining under Subsection (b) whether to require

3-42     an inmate to reside in a county in which the inmate has a verified

3-43     job offer, if the employer making the job offer states to the panel

3-44     that the job offer results from the inmate's participation in a

3-45     private sector prison industries program under Subchapter C,

3-46     Chapter 497, Government Code, the panel shall require the inmate to

3-47     reside in the county in which the job offer exists, unless to do so

3-48     would pose a threat to the life or safety of a victim of the

3-49     defendant's offense, a witness in the case, or any other person.

3-50           SECTION 3.  (a)  The initial appointments of the members of

3-51     the Private Sector Prison Industries Oversight Authority, as

3-52     required by Section 497.052, Government Code, as added by this Act,

3-53     are as provided by this  section.  On or before November 1, 1997,

3-54     the governor shall request of recognized state and local labor

3-55     federations a list of three individuals, as described by Section

3-56     497.052(b).  On or before January 1, 1998, the governor shall

3-57     appoint the initial authority members.  Of the initial public

3-58     members, the  governor shall appoint one to serve a term expiring

3-59     February 1, 1999, one to serve a term expiring February 1, 2001,

3-60     and one to serve a term expiring February 1, 2003, and of the

3-61     nonpublic members, the governor shall appoint two to serve terms

3-62     expiring February 1, 1999, two to serve  terms expiring February 1,

3-63     2001, and two to serve terms expiring February 1, 2003.  On

3-64     expiration of those terms, the term of a member of the authority is

3-65     six years, as provided by Section 497.053, Government Code.

3-66           (b)  The Private Sector Prison Industries Oversight Authority

3-67     by March 1, 1998, shall adopt the rules that the authority is

3-68     required to adopt under Subchapter C, Chapter 497, Government Code,

3-69     as amended by this Act.

 4-1           SECTION 4.  On January 1, 1998, the powers, duties, and

 4-2     obligations of the Texas Department of Criminal Justice to oversee

 4-3     the private sector prison industries program authorized by

 4-4     Subchapter C, Chapter 497, Government Code, are transferred to the

 4-5     Private Sector Prison Industries Oversight Authority, as are any

 4-6     funds appropriated to the department for oversight of the program.

 4-7     On transfer of oversight authority and appropriated funds, the

 4-8     remaining duties of the department in regard to the program are as

 4-9     described by Subchapter C, Chapter 497, as amended by this Act.

4-10           SECTION 5.  Notwithstanding Section 497.051(a), Government

4-11     Code, as amended by this Act, the Private Sector Prison Industries

4-12     Oversight Authority is not authorized to approve, certify, or

4-13     oversee the operations of a private sector prison industries

4-14     program operated on the effective date of this Act under a

4-15     provisional certificate issued to a nongovernmental entity under 18

4-16     U.S.C.  Section 1761.

4-17           SECTION 6.  This Act takes effect September 1, 1997.

4-18           SECTION 7.  The importance of this legislation and the

4-19     crowded condition of the calendars in both houses create an

4-20     emergency and an imperative public necessity that the

4-21     constitutional rule requiring bills to be read on three several

4-22     days in each house be suspended, and this rule is hereby suspended.

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