C.S.H.B. 1372 78(R)    BILL ANALYSIS


C.S.H.B. 1372
By: Allen
Corrections
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Texas Correctional Industries (TCI) is the Texas Department of Criminal
Justice (TDCJ) office charged with implementing and administering Texas
prison industry programs.  In Fiscal Year 2002, TCI generated over $80
million in sales.  

One of TCI's purposes as defined in Section 497.002, Government Code is to
reduce TDCJ costs by providing products and articles for TDCJ.  CSHB 1372
clarifies the intent of current law by stating that TDCJ is required, as
are other state agencies, to purchase needed goods from TCI. CSHB 1372
also provides that, at least once a year, TCI must determine if there are
articles or products TDCJ needs that are not produced but could be
produced by TCI at a reduced cost or savings to the department.  In an
effort to consolidate the supervision of manufactured goods production in
TDCJ, CSHB 1372 also gives TCI supervision over the production of articles
and products in craft shops operated by TDCJ.   

The Private Sector Prison Industries Oversight Authority is the entity
charged with oversight of the Private Sector Prison Industries Enhancement
Program (PIE).  PIE 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 reimburse the state for costs of confinement, to pay
child or family dependent support, taxes, compensation to victims, and to
help expand the PIE program.  As of March 2003, PIE room & board
deductions from inmate wages totaled $1.2 million in the current fiscal
year. 
 
The bill clarifies PIE job displacement determination as it relates to
specific job types in Texas. Also, the bill defines PIE job displacement
determination to specify that a PIE program does not result in the loss of
existing jobs if, at the time of initial PIE certification, the jobs are
performed by workers in a foreign country.  Further, CSHB 1372 increases
the statutory cap on participants in the private sector prison industries
program from 2,000 to 5,000. 

Finally, CSHB 1372 makes conforming and nonsubstantive changes to statutes
regarding the negotiation and cost of license plates. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

SECTION 1.The bill amends Section 497.002, Government Code, to state that
Texas Correctional Industries (the "office") has supervision over
production in crafts shops operated by TDCJ. 

 SECTION 2.The bill amends Section 497.024, Government Code (AGENCIES AND
POLITICAL SUBDIVISIONS: DUTIES TO PURCHASE [prison-made products]), by
applying the section to TDCJ in the same manner as other state agencies.
The bill provides that, at least once a year, TCI must determine if there
are articles or products that TDCJ needs and are not produced but could be
produced by TCI at a reduced cost or savings to the department. 
 
SECTION 3.The bill amends Section 497.059, Government Code to clarify job
displacement determination regarding specific job types.  The bill defines
PIE job displacement determination to specify that a PIE program does not
result in the loss of existing jobs if, at the time of initial PIE
certification, the jobs are performed by workers in a foreign country.  

SECTION 4.The bill amends Section 497.062(a), Government Code to increase
the statutory cap on participants in the PIE program from 2,000 to 5,000. 
  
SECTION 5.The bill amends Section 501.013, Government Code, to make Texas
Correctional Industries the supervising authority for arts and crafts
produced in TDCJ. 

SECTION 6.The bill amends Section 502.053, Transportation Code, to require
the Texas Department of Criminal Justice, the Texas Department of
Transportation, and the Texas Building and Procurement Commission
(formerly the General Services Commission) to set the price of license
plates and insignia.  The bill makes other conforming changes. 

SECTION 7.Effective date.

EFFECTIVE DATE

September 1, 2003

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute modifies the original by removing the amendment to Section
497.022, Government Code, regarding contracts with a nonprofit
organization.  The substitute modifies the original by removing the
amendments to Section 497.058, Government Code, regarding PIECP wages.
The substitute modifies the original by removing the amendment to Section
497.0581(a), Government Code, regarding wage deductions for PIE program
participants under supervision of the Texas Youth Commission.   

The substitute modifies the original by giving TCI supervision over the
production of articles, products, arts, and crafts in craft shops operated
by TDCJ.  The substitute further modifies the original by clarifying that
Section 497.024 Government Code (AGENCIES AND POLITICAL SUBDIVISIONS:
DUTIES TO PURCHASE [prison-made products]) applies to TDCJ in the same
manner as other state agencies.  The substitute also provides that, at
least once a year, TCI must determine if there are articles or products
that TDCJ needs and are not produced but could be produced by TCI at a
reduced cost or savings to the department. 

The substitute modifies the original by amending Section 497.059,
Government Code, regarding PIE job displacement determination of specific
job types in the state, not in the location in which the program is to be
established.  The substitute also differs from the original bill by
specifying that a  PIE program does not result in the loss of existing
jobs if, at the time of initial PIE certification, the jobs are performed
by workers in a foreign country.  The substitute also increases the cap on
PIE participants from 2,000 to 5,000. 

The substitute adds Texas Building and Procurement Commission to the
agencies who must set the price of license plates.