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


Office of House Bill AnalysisC.S.H.B. 1617
By: Allen
Corrections
4/3/2001
Committee Report (Substituted)



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.   C.S.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

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

C.S.H.B. 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 department in implementing the program.   

C.S.H.B. 1617 establishes the private sector prison industries expansion
account (account) within the general revenue fund.  The bill requires the
comptroller of public accounts 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. 

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

EFFECTIVE DATE

September 1, 2001.

 COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 1617 differs from the original bill by moving the private sector
prison industries expansion account (account) into the general revenue fund
and by creating the private sector prison industry crime victims assistance
account in the general revenue fund.  The substitute sets forth new
provisions for the transfer of participants' wage deductions into the
general revenue fund and ultimately the account, and requires the
comptroller of public accounts to transfer an amount equal to all of the
wage deductions from the general revenue fund to the account until the
account reaches $2 million.  The substitute requires the authority to
establish as a goal that the private sector prison industries program have
at least 1,800 participants by January 1, 2006.