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.