LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 24, 1997
         
         
      TO: Honorable Allen Hightower, Chair            IN RE:  House Bill No. 819, Committee Report 1st House, Substituted
          Committee on Corrections                              By: Cuellar
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB819 ( Relating 
to reducing the recidivism rate for individuals under the supervision 
of the Texas Department of Criminal Justice.) this office has 
detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB819-Committee Report 1st House, Substituted   FN Revision 1
         
Implementing the provisions of the bill would result in a net 
impact of $0 to General Revenue Related Funds through the biennium 
ending August 31, 1999.

The fiscal note is being revised 
because the committee vote was reconsidered.  The revision does 
not contain any change in the fiscal implications.
         
The bill would make no appropriation but could provide the legal 
basis for an appropriation of funds to implement the provisions 
of the bill.
         
 
Fiscal Analysis
 
The bill would amend the Government Code to statutorily create 
a programs and services division within the Texas Department 
of Criminal Justice (TDCJ).  The programs and services division 
would be required to administer TDCJ's programs that are designed 
for the primary purpose of rehabilitating inmates.

The bill 
would also provide criteria to the Board of Criminal Justice 
for selection of Industry Advisory Committee members, provide 
criteria to TDCJ as to which inmates to assign to the prison 
factories, require the Criminal Justice Policy Council to develop 
methods for measuring the success of certain agency programs, 
require TDCJ and the Texas Workforce Commission to adopt a memorandum 
of understanding that establishes their respective responsibilities 
for providing released inmates with certain education and employment 
services, and require the State Council on Competitive Government 
 to conduct a comprehensive review of services provided by the 
prison industries office.  

 
Methodolgy
 
The bill would partially implement Texas Performance Review 
(TPR) recommendation PSC 1 in Disturbing the Peace: The Challenge 
of Change in Texas Government.  The TPR estimates that implementing 
the provisions of the bill would lower the recidivism of adults 
leaving the correctional system by at least five percent. This 
would result in eventual savings to the state because certain 
prison costs would not be incurred in the future for those inmates. 
 

The probable fiscal implications of implementing the provisions 
of the bill during each of the first five years following passage 
is estimated as follows:
 
Five Year Impact:
 
Fiscal Year Probable           
            Savings/(Cost)                                                                                
            from General                                                                                  
            Revenue Fund                                                                                  
            0001                                                                                           
       1998                $0                                                                        
       1998                 0                                                                        
       2000                 0                                                                        
       2001         4,340,000                                                                        
       2002         5,717,000                                                                        
 
 
         Net Impact on General Revenue Related Funds:
 
The probable fiscal implication to General Revenue related funds 
during each of the first five years is estimated as follows:
 
              Fiscal Year      Probable Net Postive/(Negative)
                               General Revenue Related Funds
                                             Funds
               1998                   $0
               1999                    0
               2000                    0
               2001            4,340,000
               2002            5,717,000
 
Similar annual fiscal implications would continue as long as 
the provisions of the bill are in effect.
          
No significant fiscal implication to units of local government 
is anticipated.
          
   Source:            Agencies:   696   Department of Criminal Justice
                                         304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,CB ,JN