SRC-BWC H.B. 1617 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 1617
77R10197 GWK-FBy: Allen (Armbrister)
Criminal Justice
5/9/2001
Engrossed


DIGEST AND PURPOSE 

The Texas Department of Criminal Justice (TDCJ) established a pilot program
in Lockhart, Texas, that allows inmates to earn a prevailing wage from
private sector corporations by working within the walls of the prison.
Inmates in the program have earned a substantial amount of money, a portion
of which has been used to help pay the costs of confinement as well as
credited to the private sector prison industries oversight account and the
compensation to victims of crime fund.  H.B. 1617 modifies the use of
contributions by private sector prison industries and forms a private
sector prison industry expansion account within the general revenue fund.  

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 497.008, Government Code, to require a business
that intends to lease prison land, to lease the land at a mutually agreed
upon price, rather than at fair market value. 

SECTION 2.  Amends Section 497.056, Government Code, as follows:

Sec. 497.056.  New heading:  PRIVATE SECTOR PRISON INDUSTRIES EXPANSION
ACCOUNT.  Deletes text that requires a private sector prison industries
program to make an annual payment to the Private Sector Industries
Oversight Authority 
(authority) in a certain amount.  Requires the Department of Criminal
Justice (department), rather than the authority, to forward money collected
under Section 497.0581, rather than this section, to the comptroller.
Requires the comptroller to deposit the money in the general revenue fund.
Provides that to construct more facilities and increase the number of
participants, the private sector prison industry expansion account is
created as an account in the general revenue fund.  Authorizes money in the
account to be appropriated only to construct work facilities, recruit
corporations to participate as private sector industries programs, and pay
costs of the authority and department in implementing this subchapter,
including the cost to the department in reimbursing authority members and
the employer liaison for expenses.  Requires the comptroller, on each
certification by the department that an amount has been deposited to the
credit of the general revenue fund from deductions from participants' wages
under Section 497.0581, to transfer an equivalent amount from the general
revenue fund to the private sector prison industry expansion account, until
the balance in the account is $2 million.  Requires the comptroller, on a
certification occurring when the balance in the account is more than $2
million, to transfer to the account an amount equal to one-half of the
amount deposited to the credit of the general revenue fund from deductions
from participants' wages.  Requires the department during each calendar
quarter to make a certification of the amount deposited during the previous
calendar quarter to the credit of the general revenue fund from deductions
from participants' wages under Section 497.0581.  Deletes text authorizing
the legislature to appropriate funds from the account only for certain
purposes.  Deletes text that required the  comptroller to transfer the
excess funds in the account to the state treasury to the credit of the
crime victims compensation fund.  Deletes text that required the authority
by rule to adopt a method for determining the amount of the fee owed by an
industry and a schedule for the payment of fees. 

SECTION 3.  Amends Section 497.0581, Government Code, as follows:
 
Sec. 497.0581.  New heading:  PARTICIPANT CONTRIBUTIONS;  ASSISTANCE
ACCOUNT.  Requires the authority by rule to determine the amount of
deductions to be taken from, rather than require a participant to
contribute a percentage of the, wages received by the participant under
this subchapter.  Requires the authority to ensure that the deductions do,
rather than the percentage does, not place the private sector prison
industries programs in the department in noncompliance with the federal
prison enhancement certification program established under 18 U.S.C.
Section 1761, in determining the amount of deductions under this section,
rather than in establishing the percentage of the wages required to be
contributed by participants.  Provides that the private sector prison
industry crime victims assistance account is created as an account in the
general revenue fund.  Authorizes money in the account to be appropriated
only to the authority for the purpose of aiding victims of crime, under
rules adopted by the authority. 

SECTION 4.  Amends Section 497.062, Government Code, as follows:

Sec. 497.062.  New heading:  LIMITATION ON NUMBER OF PARTICIPANTS; GOALS.
Requires the authority to establish as a goal that the program have at
least 1,800 participants by January 1, 2006. 

SECTION 5.  Provides that the amendment to Section 497.056, Government
Code, made by this Act does not apply to a payment made by a private sector
prison industries program before the effective date of this Act, and a
program that makes a required payment before the effective date of this Act
is not, on or after the effective date of this Act, eligible to receive a
full or partial refund of the payment. 

SECTION 6.  Effective date: September 1, 2001.