By Allen                                              H.B. No. 3247
         76R2947 GWK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the operation of Texas Correctional Industries and
 1-3     private sector prison industries.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 497.004(b), Government Code, is amended
 1-6     to read as follows:
 1-7           (b)  The board may develop by rule and the department may
 1-8     administer an incentive pay scale for inmates who participate in
 1-9     prison industries, consistent with rules adopted by the Private
1-10     Sector Prison Industries Oversight Authority  under Subchapter C.
1-11     Prison industries may be financed through contributions donated for
1-12     this purpose by private businesses contracting with the department.
1-13     The department shall apportion pay earned by an inmate in the same
1-14     manner as is required by rules adopted by the Private Sector Prison
1-15     Industries Oversight Authority under Section 497.057 [497.051].
1-16           SECTION 2.  Section 497.006, Government Code, is amended to
1-17     read as follows:
1-18           Sec. 497.006.  CONTRACTS WITH PRIVATE BUSINESS.  To encourage
1-19     the development and expansion of prison industries, the prison
1-20     industries office may  enter into necessary contracts related to
1-21     the prison industries program.  With the approval of the board, the
1-22     office may enter into a contract with a private business to conduct
1-23     a program on or off property operated by the department.  A
1-24     contract entered into under this section must comply with the
 2-1     Private Sector/Prison Industry Enhancement Certification Program
 2-2     operated by the Bureau of Justice Assistance and authorized by 18
 2-3     U.S.C. Section 1761.  In determining under Section 497.062
 2-4     [497.051] the number of inmates employed in private sector prison
 2-5     industries [conditional work] programs, the department shall count
 2-6     the number of inmates participating in a work program under a
 2-7     contract entered into under this section.  [Not more than 250
 2-8     inmates may participate in work programs under contracts entered
 2-9     into under this section.]
2-10           SECTION 3.  Section 497.056(b), Government Code, is amended
2-11     to read as follows:
2-12           (b)  The authority shall forward fees collected under this
2-13     section to the comptroller.  The comptroller shall deposit the fees
2-14     to the credit of an account in the general revenue fund to be known
2-15     as the private sector prison industries oversight account.  The
2-16     legislature may appropriate funds from the account only for the
2-17     purpose of paying the costs of the authority and the department in
2-18     implementing this subchapter, including the cost to the department
2-19     of paying the reimbursable expenses of authority members under
2-20     Section 497.055.  At the end of each fiscal year, the comptroller
2-21     shall transfer the excess funds in the account to the state
2-22     treasury to the credit of the crime victims compensation fund.
2-23           SECTION 4.  Section 497.058, Government Code, is amended to
2-24     read as follows:
2-25           Sec. 497.058.  PREVAILING WAGE.  (a)  The authority by rule
2-26     shall require that inmate employees at each private sector prison
2-27     industries program are paid not less than the prevailing wage as
 3-1     computed by the authority or as determined by the authority using
 3-2     surveys[, except that the authority may permit employers to pay an
 3-3     employee the minimum wage for the two-month period beginning on the
 3-4     date employment begins].
 3-5           (b)  For the purposes of computations or determinations
 3-6     required of the authority by this section:
 3-7                 (1)  the prevailing wage is the wage paid for work of a
 3-8     similar nature in the location in which the work is performed;
 3-9                 (2)  work of a similar nature is determined by openings
3-10     and wages by occupation data collected by the economic research and
3-11     analysis department of the Texas Workforce Commission; and
3-12                 (3)  the location in which work is performed is the
3-13     council of government region in which the work is performed.
3-14           SECTION 5.  Section 497.059, Government Code, is amended to
3-15     read as follows:
3-16           Sec. 497.059.  LIMITING IMPACT ON NON-PRISON INDUSTRY.  The
3-17     authority may not grant initial certification to a private sector
3-18     prison industries program if the authority determines that the
3-19     operation of the program would result in the loss of existing jobs
3-20     provided by the employer in this state. A program does not result
3-21     in the loss of existing jobs provided by the employer in this state
3-22     if, but for the existence of the program, the jobs would be filled
3-23     outside of the United States.
3-24           SECTION 6.  Section 501.024, Labor Code, is amended to read
3-25     as follows:
3-26           Sec. 501.024.  EXCLUSIONS FROM COVERAGE.  The following
3-27     persons are excluded from coverage as an employee under this
 4-1     chapter:
 4-2                 (1)  a person performing personal services for the
 4-3     state as an independent contractor or volunteer;
 4-4                 (2)  a member of the state military forces as defined
 4-5     by  Section 431.001, Government Code;
 4-6                 (3)  a person who at the time of injury was performing
 4-7     services for the federal government and who is covered by some form
 4-8     of federal workers' compensation insurance;
 4-9                 (4)  a prisoner or inmate of a prison or correctional
4-10     institution, other than an inmate participating in a Texas
4-11     Correctional Industries contract described by Section 497.006,
4-12     Government Code;
4-13                 (5)  a client or patient of a state agency;
4-14                 (6)  a person employed by the Texas Department of
4-15     Transportation who is covered under Chapter 505;
4-16                 (7)  a person employed by The University of Texas
4-17     System who is covered by Chapter 503; and
4-18                 (8)  a person employed by The Texas A&M University
4-19     System who is covered by Chapter 502.
4-20           SECTION 7.  Section 497.0581, Government Code, is repealed.
4-21           SECTION 8.  This Act takes effect September 1, 1999.
4-22           SECTION 9.  The importance of this legislation and the
4-23     crowded condition of the calendars in both houses create an
4-24     emergency and an imperative public necessity that the
4-25     constitutional rule requiring bills to be read on three several
4-26     days in each house be suspended, and this rule is hereby suspended.