77R10197 GWK-F                           
         By Allen                                              H.B. No. 1617
         Substitute the following for H.B. No. 1617:
         By Haggerty                                       C.S.H.B. No. 1617
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the expansion of prison industries programs.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1. Section 497.008, Government Code, is amended to
 1-5     read as follows:
 1-6           Sec. 497.008.  LEASE OF LAND. To further the expansion and
 1-7     development of prison industries, the department may lease prison
 1-8     land to a private business.  A lease under this section may not
 1-9     exceed a term of 50 years.  The business must lease the land at a
1-10     mutually agreed upon price [fair market value] and may construct or
1-11     convert plant facilities on the land.
1-12           SECTION 2. Section 497.056, Government Code, is amended to
1-13     read as follows:
1-14           Sec. 497.056.  PRIVATE SECTOR PRISON INDUSTRIES EXPANSION
1-15     [OVERSIGHT] ACCOUNT. (a)  [A private sector prison industries
1-16     program shall make an annual payment to the authority in an amount
1-17     equal to the amount of money the program would pay during that year
1-18     for unemployment insurance if the employees of the program were
1-19     engaged in non-prison employment.]
1-20           [(b)]  The department [authority] shall forward money [fees]
1-21     collected under Section 497.0581 [this section] to the comptroller.
1-22     The comptroller shall deposit the money in [the fees to the credit
1-23     of an account in] the general revenue fund [to be known as the
1-24     private sector prison industries oversight account].
 2-1           (b)  To construct more facilities and increase the number of
 2-2     participants, the private sector prison industry expansion account
 2-3     is created as an account in the general revenue fund.  Money in the
 2-4     account may be appropriated only to construct work facilities,
 2-5     recruit corporations to participate as private sector industries
 2-6     programs, and pay costs of the authority and department in
 2-7     implementing this subchapter, including  the cost to the department
 2-8     in reimbursing authority members and the employer liaison for
 2-9     expenses.
2-10           (c)  On each certification by the department that an amount
2-11     has been deposited to the credit of the general revenue fund from
2-12     deductions from participants' wages under Section 497.0581, the
2-13     comptroller shall transfer an equivalent amount from the general
2-14     revenue fund to the private sector prison industry expansion
2-15     account, until the balance in the account is $2 million.  On a
2-16     certification occurring when the balance in the account is more
2-17     than $2 million, the comptroller shall transfer to the account an
2-18     amount equal to one-half of the amount deposited to the credit of
2-19     the general revenue fund from deductions from participants' wages.
2-20           (d)  The department during each calendar quarter shall make a
2-21     certification of the amount deposited during the previous calendar
2-22     quarter to the credit of the general revenue fund from deductions
2-23     from participants' wages under Section 497.0581. [The legislature
2-24     may appropriate funds from the account only for the purpose of
2-25     paying the costs of the authority and the department in
2-26     implementing this subchapter, including the cost to the department
2-27     of paying the reimbursable expenses of authority members under
 3-1     Section 497.055 and the employer liaison as provided by Section
 3-2     497.052(c).  At the end of each fiscal year, the comptroller shall
 3-3     transfer the excess funds in the account to the state treasury to
 3-4     the credit of the crime victims compensation fund.]
 3-5           [(c)  The authority by rule shall adopt a method for
 3-6     determining the amount of the fee owed by an industry under this
 3-7     section and a schedule for the payment of fees under this section.]
 3-8           SECTION 3. Section 497.0581, Government Code, is amended to
 3-9     read as follows:
3-10           Sec. 497.0581.  PARTICIPANT CONTRIBUTIONS; ASSISTANCE
3-11     ACCOUNT. (a)  The authority by rule shall determine the amount of
3-12     deductions to be taken from [require a participant to contribute a
3-13     percentage of the] wages received by the participant under this
3-14     subchapter [to be deposited in the private sector prison industries
3-15     oversight account].  In determining the amount of deductions
3-16     [establishing the percentage of the wages required to be
3-17     contributed by participants] under this section, the authority
3-18     shall ensure that the deductions do [percentage does] not place the
3-19     private sector prison industries programs in the department in
3-20     noncompliance with the federal prison enhancement certification
3-21     program established under 18 U.S.C. Section 1761.
3-22           (b)  The private sector prison industry crime victims
3-23     assistance account is created as an account in the general revenue
3-24     fund.  Money in the account may be appropriated only to the
3-25     authority for the purpose of aiding victims of crime, under rules
3-26     adopted by the authority.
3-27           SECTION 4. Section 497.062, Government Code, is amended to
 4-1     read as follows:
 4-2           Sec. 497.062.  LIMITATION ON NUMBER OF PARTICIPANTS; GOALS.
 4-3     (a)  The authority may certify any number of private sector prison
 4-4     industries programs that meet or exceed the requirements of federal
 4-5     law and the rules of the authority, but in no event may the
 4-6     authority permit more than 2,000 participants in the program at any
 4-7     one time.
 4-8           (b)  The authority shall establish as a goal that the program
 4-9     have at least 1,800 participants by January 1, 2006.
4-10           SECTION 5. The amendment to Section 497.056, Government Code,
4-11     made by this Act does not apply to a payment made by a private
4-12     sector prison industries program before the effective date of this
4-13     Act, and a program that makes a required payment before the
4-14     effective date of this Act is not, on or after the effective date
4-15     of this Act, eligible to receive a full or partial refund of the
4-16     payment.
4-17           SECTION 6.  This Act takes effect September 1, 2001.