HBA-JEK, TBM H.B. 1617 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 1617
By: Allen
Corrections
67/10/2001
Enrolled



BACKGROUND 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.   House Bill 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

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Private Sector Prison Industries
Oversight Authority in SECTION 3 (Section 497.0581, Government Code) of
this bill. 

ANALYSIS

House Bill 1617 amends the Government Code to modify provisions that
require a private sector prison industries program (program) to make
payments to the private sector prison industries oversight account for the
purpose of paying the costs of the Private Sector Industries Oversight
Authority (authority) and the Texas Department of Criminal Justice (TDCJ)
in implementing the program.  The bill removes provisions requiring a
program to make an annual payment to the authority in an amount equal to
what the program would pay during the year for unemployment insurance, and
authorizing the legislature to appropriate money from the private sector
prison industries oversight account only to pay the costs of the authority
and TDCJ in implementing the program.   

H.B. 1617 establishes the private sector prison industries expansion
account (account) within the general revenue fund.  The bill requires the
comptroller to transfer to the account an amount equivalent to the amount
deposited to the credit of the general revenue fund from the deductions
from participants' wages until the balance in the account is $2 million.
The bill requires the comptroller to transfer half of the money in excess
of $2 million to the account.  Money in the account may be appropriated
only to construct work facilities and recruit corporations to participate
in the program.  The bill requires the authority to establish as a goal
that the program have at least 1,800 participants by January 1, 2006. 

H.B. 1617 creates the private sector prison industry crime victims
assistance account (victims account) as an account in the general revenue
fund.  The bill authorizes the appropriation of money in the victims
account to the authority under rules adopted by the authority for the
purpose of aiding victims of crime. 

EFFECTIVE DATE

June 15, 2001.