1-1     By:  Lengefeld (Senate Sponsor - Armbrister)          H.B. No. 1318
 1-2           (In the Senate - Received from the House March 31, 1999;
 1-3     April 6, 1999, read first time and referred to Committee on
 1-4     Criminal Justice; May 10, 1999, reported favorably by the following
 1-5     vote:  Yeas 7, Nays 0; May 10, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the authority of the Texas Department of Criminal
 1-9     Justice to manage inmate money and to the procedures for managing
1-10     inmate money.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1.  Sections 501.014(a), (b), (c), (d), (f), and (g),
1-13     Government Code, are amended to read as follows:
1-14           (a)  The department [institutional division] shall take
1-15     possession of all money that  an inmate has on the inmate's person
1-16     or that is received with the inmate when the inmate arrives at a
1-17     facility to be admitted to the custody of the department [operated
1-18     by the institutional division] and all money the inmate receives at
1-19     the department during confinement [after arriving at a facility
1-20     operated by the division] and shall credit the money to an account
1-21     [a trust fund] created for the inmate.  [The institutional division
1-22     shall carefully search an inmate when the inmate arrives at a
1-23     facility operated by the division.]  The department [institutional
1-24     division] may spend money from an inmate account [a trust fund] on
1-25     the written order of the inmate in whose  name the account [fund]
1-26     is established or as required by law or policy subject to
1-27     restrictions on the expenditure established by law or  policy.  The
1-28     department shall ensure that each facility operated by or under
1-29     contract with the department shall operate an account [a trust
1-30     fund] system that complies with this section, but the department is
1-31     not required to operate a separate account [trust fund] system for
1-32     or at each facility.
1-33           (b)  If an inmate with money in an account [a trust fund]
1-34     established under Subsection (a)  dies while confined in a facility
1-35     operated by or under contract with the department [institutional
1-36     division or escapes or is discharged and does not claim the money],
1-37     the department [institutional division] shall attempt to give
1-38     notice of the account [fund to the discharged inmate or] to a [the]
1-39     beneficiary or [nearest] known relative of the [a] deceased[,
1-40     escaped, or discharged] inmate.  On the presentation of a notarized
1-41     claim  to the department for the money by a person entitled to the
1-42     notice, the department may [institutional division shall] pay any
1-43     amount  not exceeding $2,500 of the deceased inmate's money held by
1-44     the department to the claimant.  A claim for money in excess of
1-45     $2,500 must be made under Section 137, Probate Code, or another
1-46     law, as applicable.  The department is not liable for making a
1-47     payment or failing to make a payment under this subsection.
1-48           (c)  If money is unclaimed two years after the department
1-49     [institutional division] gives or attempts to give notice under
1-50     Subsection (b), or two years after the date of the death of an
1-51     inmate whose beneficiary or [nearest] relative is unknown, the
1-52     executive director, or the executive director's  designee, [of the
1-53     institutional  division] shall make an affidavit stating that the
1-54     money in the inmate account is unclaimed and send the affidavit and
1-55     money to the comptroller.
1-56           (d)  An inmate who escapes or attempts to escape from the
1-57     custody of the department forfeits to the department all of the
1-58     money held by the  department in the inmate's account at the time
1-59     of the escape or attempted escape.  Money forfeited to the
1-60     comptroller under Subsection (c) escheats to the state.
1-61           (f)  The department may place a hold on money [funds] in or
1-62     withdraw money [funds] from an inmate [trust fund] account:
1-63                 (1)  to restore amounts withdrawn by the inmate against
1-64     uncollected money [funds];
 2-1                 (2)  to correct accounting errors;
 2-2                 (3)  to make restitution for wrongful withdrawals made
 2-3     by an inmate from the account [trust fund] of another inmate;
 2-4                 (4)  to cover deposits until cleared;
 2-5                 (5)  as directed by court order in accordance with
 2-6     Subsection (e);
 2-7                 (6)  as part of an investigation by the department of
 2-8     inmate conduct involving the use of the account [trust funds] or an
 2-9     investigation in which activity or money in the inmate's account
2-10     [trust fund] is evidence; [or]
2-11                 (7)  to transfer money [funds] deposited in violation
2-12     of law or department policy; or
2-13                 (8)  to recover money the inmate owes the department
2-14     for indigent supplies, medical copayments, destruction of state
2-15     property, or other indebtedness.
2-16           (g)  The department shall withdraw money from an inmate's
2-17     account [trust fund] under Subsection (e) before the department
2-18     applies a deposit to that account [fund] toward any unpaid balance
2-19     owed to the department by the inmate under Section 501.061.
2-20           SECTION 2.  Section 501.014(e), Government Code, as amended
2-21     by Chapters 807 and 1409, Acts of the 75th Legislature, Regular
2-22     Session, 1997, is reenacted and amended to read as follows:
2-23           (e)  On notification by a court, the department shall
2-24     withdraw from an inmate's [trust fund] account any amount the
2-25     inmate is ordered to pay by order of the court under this
2-26     subsection.  The department shall make a payment under this
2-27     subsection as ordered by the court to either the court or the party
2-28     specified in the court order.  The department is not liable for
2-29     withdrawing or failing to withdraw money or making payments or
2-30     failing to make payments under this subsection.  The department
2-31     shall make withdrawals and payments from an inmate's [trust fund]
2-32     account under this subsection according to the following schedule
2-33     of priorities:
2-34                 (1)  as payment in full for all orders for child
2-35     support;
2-36                 (2)  as payment in full for all orders for restitution;
2-37                 (3)  as payment in full for all orders for
2-38     reimbursement of the Texas Department of Human Services for
2-39     financial assistance provided for the child's health needs under
2-40     Chapter 31, Human Resources Code, to a child of the inmate;
2-41                 (4) [(3)]  as payment in full for all orders for court
2-42     fees and costs;
2-43                 (5) [(4)]  as payment in full for all orders for fines;
2-44     and
2-45                 (6) [(5)]  as payment in full for any other court
2-46     order, judgment, or writ.
2-47           SECTION 3.  This Act takes effect September 1, 1999.
2-48           SECTION 4.  The importance of this legislation and the
2-49     crowded condition of the calendars in both houses create an
2-50     emergency and an imperative public necessity that the
2-51     constitutional rule requiring bills to be read on three several
2-52     days in each house be suspended, and this rule is hereby suspended.
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