By Allen H.B. No. 2324
75R6212 GWK-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the organization and operation of prison industries,
1-3 agricultural programs, and work programs of the Texas Department of
1-4 Criminal Justice; providing a penalty.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subchapters A and B, Chapter 497, Government
1-7 Code, are amended to read as follows:
1-8 SUBCHAPTER A. TEXAS CORRECTIONAL [PRISON]
1-9 INDUSTRIES [OFFICE]
1-10 Sec. 497.001. TEXAS CORRECTIONAL [PRISON] INDUSTRIES;
1-11 DEFINITIONS [OFFICE]. (a) Texas Correctional Industries [The
1-12 prison industries office] is an office in the department.
1-13 (b) In this subchapter and Subchapter B:
1-14 (1) "Office" means Texas Correctional Industries.
1-15 (2) "Articles and products" include services provided
1-16 through the use of inmate labor.
1-17 Sec. 497.002. PURPOSE; IMPLEMENTATION. (a) The purposes of
1-18 the [prison industries] office are to implement this subchapter and
1-19 Subchapter (B) to:
1-20 (1) provide adequate, regular, and suitable employment
1-21 for the [and] vocational training and rehabilitation of inmates,
1-22 consistent with proper correctional purposes;
1-23 (2) use the labor of inmates for self-maintenance;
1-24 (3) reimburse the state for expenses caused by the
2-1 crimes of inmates and the cost of their imprisonment;
2-2 (4) provide for the requisition and disbursement of
2-3 department articles and products through established state
2-4 authorities to eliminate the possibility of unlawful private profit
2-5 from the distribution of those articles and products;
2-6 (5) provide materials, products, or articles for sale
2-7 to the public, to private enterprises, or to agencies of the state
2-8 or political subdivisions of the state; and
2-9 (6) develop and expand public and private prison
2-10 industry operations [development and expansion of public and
2-11 private prison industries].
2-12 (b) To implement the purposes of the office, the department
2-13 may establish and operate a prison industries program at each
2-14 correctional facility that the department considers suitable for
2-15 such a program.
2-16 Sec. 497.003. ADVISORY COMMITTEE. The board may establish a
2-17 prison industries advisory committee. If the board establishes a
2-18 prison industries advisory committee, the advisory committee must
2-19 be [is] composed of nine members appointed by the board. Members
2-20 of the advisory committee, if the advisory committee is
2-21 established, serve staggered three-year terms with the terms of
2-22 three members expiring February 1 of each odd-numbered year.
2-23 Sec. 497.004. INMATE LABOR, PAY. (a) The department shall
2-24 use inmate labor in [the] prison industries [program] to the
2-25 greatest extent feasible and shall develop and expand [the] prison
2-26 industries [program] by pursuing arrangements with business for the
2-27 use of inmate labor.
3-1 (b) The board may develop by rule and the department may
3-2 administer an incentive pay scale for inmates who participate in
3-3 [the] prison industries [program]. Prison industries [The program]
3-4 may be financed through contributions donated for this purpose by
3-5 private businesses contracting with the department. The department
3-6 shall apportion pay earned by an inmate in the same manner as is
3-7 required by Section 497.051 [under this subchapter to the following
3-8 persons and entities, in amounts determined at the discretion of
3-9 the department:]
3-10 [(1) persons to whom the inmate has been ordered by a
3-11 court to pay restitution;]
3-12 [(2) the inmate's family and dependents;]
3-13 [(3) the state, as reimbursement for the cost of the
3-14 inmate's confinement;]
3-15 [(4) the compensation to victims of crime fund,
3-16 created by Article 56.54, Code of Criminal Procedure; and]
3-17 [(5) the inmate's trust fund].
3-18 Sec. 497.005. INDUSTRIAL REVOLVING ACCOUNT. (a) The
3-19 legislature may appropriate money to an industrial revolving
3-20 account in the general revenue fund.
3-21 (b) The office shall administer the industrial revolving
3-22 account.
3-23 (c) The office may use money in the industrial revolving
3-24 account to purchase real property, erect buildings, improve
3-25 facilities, buy equipment and tools, install or replace equipment,
3-26 and pay for other necessary expenses for the administration of this
3-27 subchapter and Subchapter B.
4-1 (d) The office shall remit money received from the sale of
4-2 articles and products produced under this subchapter and Subchapter
4-3 B to the comptroller to be deposited in the industrial revolving
4-4 account.
4-5 (e) When the governor and the Legislative Budget Board
4-6 determine that the industrial revolving account contains money in
4-7 an amount that exceeds the amount necessary for the administration
4-8 of this subchapter and Subchapter B, the governor and the
4-9 Legislative Budget Board shall certify that fact to the
4-10 comptroller, who shall transfer the excess amount to the
4-11 unobligated portion of the general revenue fund.
4-12 (f) Section 403.095, Government Code, does not apply to the
4-13 industrial revolving account. [PROCEEDS FROM PRISON INDUSTRIES.
4-14 Proceeds received from the operation of a prison industries program
4-15 shall be deposited in the industrial revolving fund. The proceeds
4-16 may be used by the department for the administration of this
4-17 subchapter.]
4-18 Sec. 497.006. CONTRACTS WITH PRIVATE BUSINESS. To encourage
4-19 the development and expansion of [the] prison industries
4-20 [program], the prison industries office may enter into necessary
4-21 contracts to produce articles and products to be sold on the open
4-22 market [related to the prison industries program]. With the
4-23 approval of the board, the office may enter into a contract with a
4-24 private business to conduct a program on or off property operated
4-25 by the department. A contract entered into under this section must
4-26 comply with the Private Sector/Prison Industry Enhancement
4-27 Certification Program operated by the Bureau of Justice Assistance
5-1 and authorized by 18 U.S.C. Section 1761. In determining under
5-2 Section 497.051 the number of inmates employed in conditional work
5-3 programs, the department shall count the number of inmates
5-4 participating in a work program under a contract entered into under
5-5 this section.
5-6 Sec. 497.007. GRANTS. The [prison industries] office may
5-7 accept any grant designated for inmate vocational rehabilitation.
5-8 The office shall maintain records relating to the receipt and
5-9 disbursement of grant funds, and shall annually report to the board
5-10 on the administration of grant funds.
5-11 Sec. 497.008. LEASE OF LAND. To further the expansion and
5-12 development of [the] prison industries [program], the department
5-13 may lease prison land to a private business. A lease under this
5-14 section may not exceed a term of 50 years. The business must lease
5-15 the land at fair market value and may construct or convert plant
5-16 facilities on the land.
5-17 Sec. 497.009. CERTIFICATION FOR FRANCHISE TAX CREDIT. The
5-18 department or the [prison industries] office on behalf of the
5-19 department shall prepare and issue a certification that a
5-20 corporation requires to establish eligibility for the franchise tax
5-21 credit for wages paid to inmates or employees who were inmates
5-22 under Subchapter L, Chapter 171, Tax Code.
5-23 Sec. 497.010. OFFENSE: SALE OR OFFER OF SALE OF
5-24 PRISON-PRODUCED ARTICLES OR PRODUCTS. (a) A person commits an
5-25 offense if the person intentionally sells or offers to sell on the
5-26 open market in this state an article or product the person knows
5-27 was manufactured in whole or in part by an inmate of the department
6-1 or an inmate in any correctional facility or reformatory
6-2 institution in this state or in any other state, other than an
6-3 inmate:
6-4 (1) who was on community supervision, parole, or
6-5 mandatory supervision;
6-6 (2) employed by an enterprise that has employed the
6-7 inmate in order to take advantage of the franchise tax credit
6-8 offered under Subchapter L, Chapter 171, Tax Code, at the time of
6-9 manufacture; or
6-10 (3) participating in a federally certified prison
6-11 industry enhancement program.
6-12 (b) An offense under this section is a Class B misdemeanor
6-13 [COMPLIANCE. The prison industries office may enter into a
6-14 contract with a private business under Section 497.006 only if the
6-15 contract specifies that the prison industries office and the
6-16 private business will comply with the Private Sector/Prison
6-17 Industry Enhancement Certification Program operated by the Bureau
6-18 of Justice Assistance and authorized by 18 U.S.C. Section 1761].
6-19 SUBCHAPTER B. SALES OF PRISON-MADE ARTICLES OR PRODUCTS
6-20 [GOODS ACT OF 1963]
6-21 Sec. 497.021. AUTHORITY [SHORT TITLE]. This subchapter
6-22 governs the sale of prison-made products to governmental agencies
6-23 [may be cited as the Prison-Made Goods Act of 1963].
6-24 Sec. 497.022. CONTRACTS. The department may contract with:
6-25 (1) another state, the federal government, a foreign
6-26 government, or an agency of any of those governments to manufacture
6-27 for or sell to those governments prison-made articles or products;
7-1 or
7-2 (2) a private school or a visually handicapped person
7-3 in this state to manufacture Braille textbooks or other
7-4 instructional aids for the education of visually handicapped
7-5 persons [PURPOSE. The purpose of this subchapter is to:]
7-6 [(1) provide adequate, regular, and suitable
7-7 employment for the vocational training and rehabilitation of
7-8 inmates, consistent with proper penal purposes;]
7-9 [(2) use the labor of inmates for self-maintenance;]
7-10 [(3) reimburse the state for expenses caused by the
7-11 crimes of inmates and the cost of their confinement;]
7-12 [(4) provide for the requisition and disbursement of
7-13 institutional division articles and products through established
7-14 state authorities to eliminate the possibility of private profits
7-15 from the distribution of those articles and products; and]
7-16 [(5) provide materials, products, or articles for sale
7-17 to a private person or for the use of the state or a political
7-18 subdivision of the state].
7-19 Sec. 497.023. [RULES. The board may adopt rules necessary
7-20 for the administration of this subchapter.]
7-21 [Sec. 497.024] PRIORITIES. Under this subchapter and
7-22 Subchapter A, the office [The institutional division] shall produce
7-23 products and articles [administer this subchapter] first to fulfill
7-24 the needs of agencies of the state [for articles and products
7-25 produced under this subchapter,] and second to fulfill the needs of
7-26 political subdivisions or other purchasers [for the articles and
7-27 products].
8-1 [Sec. 497.025. PURCHASE OF EQUIPMENT AND SUPPLIES;
8-2 EMPLOYMENT OF PERSONNEL. To provide articles and products to an
8-3 agency of the state or a political subdivision of the state, the
8-4 institutional division may purchase equipment, raw materials, and
8-5 supplies in the manner provided by law.]
8-6 Sec. 497.024 [497.026]. AGENCIES AND POLITICAL SUBDIVISIONS:
8-7 DUTIES TO PURCHASE. (a) If the office [institutional division]
8-8 produces an article or product under this subchapter, an agency of
8-9 the state or a political subdivision may purchase the article or
8-10 product only from the office [division].
8-11 (b) If the General Services Commission determines that an
8-12 article or product produced by the office [institutional division]
8-13 under this subchapter does not meet the requirements of an agency
8-14 of the state or a political subdivision, or that the office has
8-15 determined [institutional division of the Texas Department of
8-16 Criminal Justice determines] that the office [division] is unable
8-17 to fill a requisition for an article or product, the agency or
8-18 subdivision may purchase the article or product from another
8-19 source.
8-20 (c) An agency of the state or a political subdivision may
8-21 not evade the intent of this subchapter by requesting an article or
8-22 product that varies slightly from standards for articles or
8-23 products established under Section 497.027 [497.029], if the office
8-24 [institutional division] produces a similar article or product
8-25 that is in compliance with established standards and is reasonably
8-26 suited to the actual needs of the agency or subdivision.
8-27 Sec. 497.025 [497.027]. PURCHASING PROCEDURE. (a) An
9-1 agency of the state that purchases articles and products under
9-2 this subchapter must requisition the purchase through the General
9-3 Services Commission except for purchases of articles or products
9-4 [items or services] not included in an established contract. The
9-5 purchase of articles or products [items] not included in an
9-6 established contract and that do not exceed the dollar limits
9-7 established under Section 2155.132 [3.08(a), State Purchasing and
9-8 General Services Act (Article 601b, Vernon's Texas Civil
9-9 Statutes),] may be acquired directly from the office [department]
9-10 on the agency's obtaining an informal or a formal quotation for
9-11 the item and issuing a proper purchase order to the office
9-12 [department].
9-13 (b) A political subdivision may purchase articles and
9-14 products under this subchapter directly from the office
9-15 [institutional division].
9-16 (c) If an agency or political subdivision purchasing goods
9-17 under this subchapter desires to purchase goods or articles from
9-18 the office [division], it may do so without complying with any
9-19 other state law otherwise requiring the agency or political
9-20 subdivision to request competitive bids for the article or product.
9-21 Nothing herein shall be interpreted to require a political
9-22 subdivision to purchase goods or articles from the office
9-23 [division] if the political subdivision determines that the goods
9-24 or articles can be purchased elsewhere at a lower price or an
9-25 agency to purchase goods or articles from the office [division] if
9-26 the agency determines, and the General Services Commission
9-27 certifies, that the goods or articles can be purchased elsewhere at
10-1 a lower price.
10-2 Sec. 497.026 [497.028]. PRICES. The office [institutional
10-3 division] and the [State Purchasing and] General Services
10-4 Commission shall determine the sales price of articles and products
10-5 produced under this subchapter.
10-6 Sec. 497.027 [497.029]. SPECIFICATIONS. (a) The [State
10-7 Purchasing and] General Services Commission shall establish
10-8 specifications for articles and products produced under this
10-9 subchapter. An article or product produced under this subchapter
10-10 must meet specifications established under this subsection in
10-11 effect when the article or product is produced.
10-12 (b) The office [institutional division] may manufacture
10-13 articles and products to meet commercial specifications for the
10-14 article or product if the [State Purchasing and] General Services
10-15 Commission has not established specifications for the article or
10-16 product and the commission approves the commercial specifications.
10-17 Sec. 497.028 [497.030]. CATALOGS. The office [institutional
10-18 division] shall prepare catalogs that accurately and completely
10-19 describe articles and products produced under this subchapter. The
10-20 office [institutional division] shall send copies of the catalogs
10-21 to all state agencies and make the catalogs available to political
10-22 subdivisions.
10-23 Sec. 497.029 [497.031]. NEW ARTICLES AND PRODUCTS. The
10-24 [State Purchasing and] General Services Commission may request the
10-25 office [institutional division] to produce additional articles or
10-26 products under this subchapter.
10-27 Sec. 497.030 [497.032]. [STATE PURCHASING AND] GENERAL
11-1 SERVICES COMMISSION REPORTS. (a) Not later than the 31st day
11-2 before the first day of each fiscal year, the [State Purchasing
11-3 and] General Services Commission shall submit to the office
11-4 [institutional division] a report that summarizes the types and
11-5 amounts of articles and products sold under this subchapter in the
11-6 preceding nine months.
11-7 (b) Not later than the 100th day after the last day of each
11-8 fiscal year, the [State Purchasing and] General Services Commission
11-9 shall submit to the office [institutional division] a report that
11-10 states the types and amounts of articles and products sold under
11-11 this subchapter in the preceding fiscal year.
11-12 (c) A report submitted by the [State Purchasing and] General
11-13 Services Commission under this section must describe the articles
11-14 and products to the extent possible in the manner those articles
11-15 and products are described in catalogs prepared under Section
11-16 497.028 [497.030].
11-17 [Sec. 497.033. INDUSTRIAL REVOLVING FUND. (a) The
11-18 legislature may appropriate in the General Appropriations Act money
11-19 to an industrial revolving fund.]
11-20 [(b) The prison industries office established under Section
11-21 497.001 shall administer the industrial revolving fund.]
11-22 [(c) The institutional division may use money appropriated
11-23 to the industrial revolving fund to erect buildings, improve
11-24 facilities, buy equipment and tools, install or replace equipment,
11-25 and pay for other necessary expenses for the administration of this
11-26 subchapter.]
11-27 [(d) The institutional division shall deposit funds received
12-1 from the sale of articles and products produced under this
12-2 subchapter with the state treasurer to be maintained in the
12-3 industrial revolving fund.]
12-4 [(e) Subject to the approval of the board, the institutional
12-5 division may use money deposited under Subsection (d) for the
12-6 purposes described in Subsection (c), and for the employment of
12-7 supervisors as necessary for the administration of this subchapter.]
12-8 [(f) When the governor and the Legislative Budget Board
12-9 determine that the industrial revolving fund contains money in an
12-10 amount that exceeds the amount necessary for the administration of
12-11 this subchapter, the excess amount shall be transferred by the
12-12 institutional division to the general revenue fund.]
12-13 [(g) Sections 403.094(h) and (i) do not apply to the
12-14 industrial revolving fund.]
12-15 [Sec. 497.034. SURPLUS PROPERTY AND AGRICULTURAL PRODUCTS.
12-16 (a) The board may authorize the director of the institutional
12-17 division to sell or dispose of surplus agricultural products and
12-18 personal property owned by the institutional division, other than
12-19 products or property produced for sale by the division.]
12-20 [(b) Products and property described by Subsection (a) shall
12-21 be sold under rules adopted by the board and at prices and terms
12-22 set by the board.]
12-23 [(c) The institutional division may use surplus agricultural
12-24 lands to provide agricultural products to a nonprofit organization
12-25 at no profit to the division.]
12-26 [Sec. 497.035. OFFENSE: SALE OR OFFER OF SALE OF
12-27 PRISON-PRODUCED ARTICLES OR PRODUCTS. (a) A person commits an
13-1 offense if the person intentionally sells or offers to sell on the
13-2 open market in this state an article or product the person knows
13-3 was manufactured in whole or in part by an inmate of the
13-4 institutional division or an inmate in a correctional facility in
13-5 any other state, other than an inmate:]
13-6 [(1) who was on community supervision, parole, or
13-7 mandatory supervision;]
13-8 [(2) employed by an enterprise who has employed the
13-9 inmate to advantage themselves of the Franchise Tax Credit offered
13-10 under Subchapter L, Chapter 171, Tax Code, at the time of
13-11 manufacture; or]
13-12 [(3) participating in a federally certified prison
13-13 industry enhancement program.]
13-14 [(b) An offense under this section is a misdemeanor
13-15 punishable by:]
13-16 [(1) a fine of not less than $10 or more than $500;]
13-17 [(2) confinement in jail for a term of not less than
13-18 10 days or more than one year; or]
13-19 [(3) both such fine and confinement.]
13-20 SECTION 2. Section 497.091, Government Code, is amended by
13-21 adding Subsection (d) to read as follows:
13-22 (d) The department may contract with nonprofit organizations
13-23 that provide services to the general public and enhance social
13-24 welfare and the general well-being of the community to provide
13-25 inmate labor to those organizations.
13-26 SECTION 3. Subchapter F, Chapter 497, Government Code, is
13-27 amended by adding Section 497.113 to read as follows:
14-1 Sec. 497.113. SURPLUS AGRICULTURAL PROPERTY AND PRODUCTS.
14-2 (a) The board may authorize the sale or disposal of surplus
14-3 agricultural products and personal property owned by the
14-4 department, other than products or property produced for sale by
14-5 the department.
14-6 (b) Products and property described by Subsection (a) shall
14-7 be sold under rules adopted by the board and at prices and terms
14-8 set pursuant to those rules.
14-9 (c) The department may use surplus agricultural capacity to
14-10 provide agricultural products to a nonprofit organization at no
14-11 profit to the department.
14-12 SECTION 4. Section 38.111(a), Penal Code, is amended to read
14-13 as follows:
14-14 (a) An inmate of the institutional division or a person
14-15 confined in a state jail felony facility commits an offense if with
14-16 intent to obtain a benefit or with intent to harm or defraud
14-17 another the inmate or person possesses, discloses, or uses personal
14-18 information about another that the inmate or person has access to
14-19 by means of participation in a work program operated by or for the
14-20 institutional division or state jail division.
14-21 SECTION 5. Section 496.051, Government Code, and Section 1,
14-22 Chapter 86, Acts of the 47th Legislature, Regular Session, 1941
14-23 (Article 9007, Vernon's Texas Civil Statutes), are repealed.
14-24 SECTION 6. (a) The changes in law made by this Act to
14-25 Section 497.010, Government Code, and Section 38.111, Penal Code,
14-26 apply only to an offense committed on or after the effective date
14-27 of this Act. For purposes of this section, an offense is committed
15-1 before the effective date of this Act if any element of the offense
15-2 occurs before the effective date.
15-3 (b) An offense committed before the effective date of this
15-4 Act is covered by the law in effect when the offense was committed,
15-5 and the former law is continued in effect for that purpose.
15-6 SECTION 7. This Act takes effect September 1, 1997.
15-7 SECTION 8. The importance of this legislation and the
15-8 crowded condition of the calendars in both houses create an
15-9 emergency and an imperative public necessity that the
15-10 constitutional rule requiring bills to be read on three several
15-11 days in each house be suspended, and this rule is hereby suspended.