1-1     By:  Allen (Senate Sponsor - Armbrister)              H.B. No. 1617
 1-2           (In the Senate - Received from the House May 9, 2001;
 1-3     May 10, 2001, read first time and referred to Committee on Criminal
 1-4     Justice; May 11, 2001, reported favorably by the following vote:
 1-5     Yeas 4, Nays 1; May 11, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the expansion of prison industries programs.
 1-9           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10           SECTION 1. Section 497.008, Government Code, is amended to
1-11     read as follows:
1-12           Sec. 497.008.  LEASE OF LAND. To further the expansion and
1-13     development of prison industries, the department may lease prison
1-14     land to a private business.  A lease under this section may not
1-15     exceed a term of 50 years.  The business must lease the land at a
1-16     mutually agreed upon price [fair market value] and may construct or
1-17     convert plant facilities on the land.
1-18           SECTION 2. Section 497.056, Government Code, is amended to
1-19     read as follows:
1-20           Sec. 497.056.  PRIVATE SECTOR PRISON INDUSTRIES EXPANSION
1-21     [OVERSIGHT] ACCOUNT. (a)  [A private sector prison industries
1-22     program shall make an annual payment to the authority in an amount
1-23     equal to the amount of money the program would pay during that year
1-24     for unemployment insurance if the employees of the program were
1-25     engaged in non-prison employment.]
1-26           [(b)]  The department [authority] shall forward money [fees]
1-27     collected under Section 497.0581 [this section] to the comptroller.
1-28     The comptroller shall deposit the money in [the fees to the credit
1-29     of an account in] the general revenue fund [to be known as the
1-30     private sector prison industries oversight account].
1-31           (b)  To construct more facilities and increase the number of
1-32     participants, the private sector prison industry expansion account
1-33     is created as an account in the general revenue fund.  Money in the
1-34     account may be appropriated only to construct work facilities,
1-35     recruit corporations to participate as private sector industries
1-36     programs, and pay costs of the authority and department in
1-37     implementing this subchapter, including  the cost to the department
1-38     in reimbursing authority members and the employer liaison for
1-39     expenses.
1-40           (c)  On each certification by the department that an amount
1-41     has been deposited to the credit of the general revenue fund from
1-42     deductions from participants' wages under Section 497.0581, the
1-43     comptroller shall transfer an equivalent amount from the general
1-44     revenue fund to the private sector prison industry expansion
1-45     account, until the balance in the account is $2 million.  On a
1-46     certification occurring when the balance in the account is more
1-47     than $2 million, the comptroller shall transfer to the account an
1-48     amount equal to one-half of the amount deposited to the credit of
1-49     the general revenue fund from deductions from participants' wages.
1-50           (d)  The department during each calendar quarter shall make a
1-51     certification of the amount deposited during the previous calendar
1-52     quarter to the credit of the general revenue fund from deductions
1-53     from participants' wages under Section 497.0581. [The legislature
1-54     may appropriate funds from the account only for the purpose of
1-55     paying the costs of the authority and the department in
1-56     implementing this subchapter, including the cost to the department
1-57     of paying the reimbursable expenses of authority members under
1-58     Section 497.055 and the employer liaison as provided by Section
1-59     497.052(c).  At the end of each fiscal year, the comptroller shall
1-60     transfer the excess funds in the account to the state treasury to
1-61     the credit of the crime victims compensation fund.]
1-62           [(c)  The authority by rule shall adopt a method for
1-63     determining the amount of the fee owed by an industry under this
1-64     section and a schedule for the payment of fees under this section.]
 2-1           SECTION 3. Section 497.0581, Government Code, is amended to
 2-2     read as follows:
 2-3           Sec. 497.0581.  PARTICIPANT CONTRIBUTIONS; ASSISTANCE
 2-4     ACCOUNT. (a)  The authority by rule shall determine the amount of
 2-5     deductions to be taken from [require a participant to contribute a
 2-6     percentage of the] wages received by the participant under this
 2-7     subchapter [to be deposited in the private sector prison industries
 2-8     oversight account].  In determining the amount of deductions
 2-9     [establishing the percentage of the wages required to be
2-10     contributed by participants] under this section, the authority
2-11     shall ensure that the deductions do [percentage does] not place the
2-12     private sector prison industries programs in the department in
2-13     noncompliance with the federal prison enhancement certification
2-14     program established under 18 U.S.C. Section 1761.
2-15           (b)  The private sector prison industry crime victims
2-16     assistance account is created as an account in the general revenue
2-17     fund.  Money in the account may be appropriated only to the
2-18     authority for the purpose of aiding victims of crime, under rules
2-19     adopted by the authority.
2-20           SECTION 4. Section 497.062, Government Code, is amended to
2-21     read as follows:
2-22           Sec. 497.062.  LIMITATION ON NUMBER OF PARTICIPANTS; GOALS.
2-23     (a)  The authority may certify any number of private sector prison
2-24     industries programs that meet or exceed the requirements of federal
2-25     law and the rules of the authority, but in no event may the
2-26     authority permit more than 2,000 participants in the program at any
2-27     one time.
2-28           (b)  The authority shall establish as a goal that the program
2-29     have at least 1,800 participants by January 1, 2006.
2-30           SECTION 5. The amendment to Section 497.056, Government Code,
2-31     made by this Act does not apply to a payment made by a private
2-32     sector prison industries program before the effective date of this
2-33     Act, and a program that makes a required payment before the
2-34     effective date of this Act is not, on or after the effective date
2-35     of this Act, eligible to receive a full or partial refund of the
2-36     payment.
2-37           SECTION 6.  This Act takes effect September 1, 2001.
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