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  H.B. No. 1914
 
 
 
 
AN ACT
  relating to abolishing the Private Sector Prison Industries
  Oversight Authority and to the certification and operation of
  private sector prison industries programs.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 492, Government Code, is amended by
  adding Section 492.0011 to read as follows:
         Sec. 492.0011.  PRIVATE SECTOR PRISON INDUSTRIES PROGRAM
  MANAGEMENT.  (a)  The board shall approve, certify, and supervise
  private sector prison industries programs operated by the
  department, the Texas Youth Commission, and county correctional
  facilities in accordance with Subchapter C, Chapter 497.
         (b)  This section does not authorize the board to direct the
  general operations of or to govern the Texas Youth Commission or
  county correctional facilities in any manner not specifically
  described by Subsection (a).
         SECTION 2.  Sections 492.003(a) and (c), Government Code,
  are amended to read as follows:
         (a)  Each member of the board must be representative of the
  general public. A person is not eligible for appointment as a 
  member if the person or the person's spouse:
               (1)  is a person, other than a judge participating in
  the management of a community supervision and corrections
  department, who is employed by or participates in the management of
  a business entity or other organization regulated by the department
  or receiving funds from the department;
               (2)  owns, or controls directly or indirectly, more
  than a 10 percent interest in a business entity or other
  organization regulated by the department or receiving funds from
  the department, including an entity or organization with which the
  department contracts under Subchapter C, Chapter 497; [or]
               (3)  uses or receives a substantial amount of tangible
  goods, services, or funds from the department, other than
  compensation or reimbursement authorized by law for board
  membership, attendance, or expenses; or
               (4)  owns, controls directly or indirectly, or is
  employed by a business entity or other organization with which the
  department contracts concerning a private sector prison industries
  program approved and certified by the board under Subchapter C,
  Chapter 497.
         (c)  A person may not be a member of the board and may not be a
  department employee employed in a "bona fide executive,
  administrative, or professional capacity," as that phrase is used
  for purposes of establishing an exemption to the overtime
  provisions of the federal Fair Labor Standards Act of 1938 (29
  U.S.C. Section 201 et seq.) and its subsequent amendments, if:
               (1)  the person is an officer, employee, or paid
  consultant of a Texas trade association in the field of criminal
  justice or private sector prison industries; or
               (2)  the person's spouse is an officer, manager, or paid
  consultant of a Texas trade association in the field of criminal
  justice or private sector prison industries.
         SECTION 3.  Section 492.0031, Government Code, is amended by
  adding Subsections (b-1) and (d) to read as follows:
         (b-1)  In addition to the information described by
  Subsection (b), the training program must provide the person with
  information regarding:
               (1)  the legislative history of Subchapter C, Chapter
  497;
               (2)  the history and operation of programs under that
  subchapter; and
               (3)  any applicable federal law concerning the
  operation or certification of a program under that subchapter.
         (d)  A person who is a member of the board on September 1,
  2009, shall complete the training described by Subsection (b-1) not
  later than January 1, 2010. This subsection expires September 1,
  2011.
         SECTION 4.  Section 497.004(a), Government Code, is amended
  to read as follows:
         (a)  The board may develop by rule and the department may
  administer an incentive pay scale for work program participants
  consistent with rules adopted by the board [Private Sector Prison
  Industries Oversight Authority] under Subchapter C.  Prison
  industries may be financed through contributions donated for this
  purpose by private businesses contracting with the department. The
  department shall apportion pay earned by a work program participant
  in the same manner as is required by rules adopted by the board
  [Private Sector Prison Industries Oversight Authority] under
  Section 497.0581.
         SECTION 5.  Section 497.006(c), Government Code, is amended
  to read as follows:
         (c)  A contract for the provision of services under this
  section must:
               (1)  be certified by the board [Private Sector Prison
  Industries Oversight Authority] as complying with all requirements
  of the Private Sector/Prison Industry Enhancement Certification
  Program operated by the Bureau of Justice Assistance and authorized
  by 18 U.S.C. Section 1761, other than a requirement relating to the
  payment of prevailing wages, so long as the contract requires
  payment of not less than the federal minimum wage;
               (2)  be certified by the board [authority], under rules
  adopted under Section 497.059, that the contract would not cause
  the loss of existing jobs of a specific type provided by any
  employer [the contracting party] in this state; and
               (3)  be approved by the board.
         SECTION 6.  The heading to Subchapter C, Chapter 497,
  Government Code, is amended to read as follows:
  SUBCHAPTER C. PRIVATE SECTOR PRISON INDUSTRIES PROGRAMS [OVERSIGHT
  AUTHORITY]
         SECTION 7.  Section 497.051, Government Code, is amended to
  read as follows:
         Sec. 497.051.  PURPOSE; DEFINITIONS [DEFINITION]. (a)  The
  board shall [Private Sector Prison Industries Oversight Authority
  is created to] approve, certify, and supervise [oversee] the
  operation of private sector prison industries programs in the
  department, the Texas Youth Commission, and in county correctional
  facilities in compliance with the federal prison enhancement
  certification program established under 18 U.S.C. Section 1761.
  The board may use board and department employees to [executive
  director shall] provide the [authority with] clerical and technical
  support [as] necessary for the board [authority] to perform the
  board's duties under [imposed on the authority by] this subchapter
  and shall ensure that the department implements the policies
  adopted by the board [authority] that relate to the operation of
  private sector prison industries programs.
         (a-1)  The board shall ensure that private sector prison
  industries programs are operated under this subchapter in a manner
  that is designed to avoid the loss of existing jobs for employees in
  this state who are not incarcerated or imprisoned.
         (b)  In this subchapter:
               (1)  "Governmental entity" means the department, the
  Texas Youth Commission, and any county that operates a private
  sector prison industries program under this subchapter.
  ["Authority" means the Private Sector Prison Industries Oversight
  Authority.]
               (2)  "Participant" means a participant in a private
  sector prison industries program.
         (c)  This subchapter does not authorize the board to direct
  the general operations of or to govern the Texas Youth Commission or
  county correctional facilities in any manner not specifically
  described by Subsection (a).
         SECTION 8.  Section 497.0527, Government Code, is amended to
  read as follows:
         Sec. 497.0527.  COMPLAINTS. (a)  The board [authority]
  shall maintain a file on each written complaint filed with the board
  in relation to a private sector prison industries program 
  [authority]. The file must include:
               (1)  the name of the person who filed the complaint;
               (2)  the date the complaint is received by the board
  [authority];
               (3)  the subject matter of the complaint;
               (4)  the name of each person contacted in relation to
  the complaint;
               (5)  a summary of the results of the review or
  investigation of the complaint; and
               (6)  an explanation of the reason the file was closed,
  if the board [authority] closed the file without taking action
  other than to investigate the complaint.
         (b)  The board [authority] shall provide to the person filing
  the complaint and to each person who is a subject of the complaint a
  copy of the board's [authority's] policies and procedures relating
  to complaint investigation and resolution.
         (c)  The board [authority], at least quarterly until final
  disposition of the complaint, shall notify the person filing the
  complaint and each person who is a subject of the complaint of the
  status of the investigation, unless the notice would jeopardize an
  undercover investigation.
         SECTION 9.  The heading to Section 497.056, Government Code,
  is amended to read as follows:
         Sec. 497.056.  PRIVATE SECTOR PRISON INDUSTRIES [EXPANSION]
  ACCOUNT.
         SECTION 10.  Sections 497.056(b) and (c), Government Code,
  are amended to read as follows:
         (b)  The [To construct more facilities and increase the
  number of participants, the] private sector prison industry
  [expansion] account is created as an account in the general revenue
  fund. Money in the account may be appropriated only to:
               (1)  [construct work facilities,] recruit corporations
  to participate as private sector industries programs;
               (2)  [, and] pay costs of the board [authority] and
  department in implementing this subchapter, including the cost to
  the department in reimbursing board [authority] members [and the
  employer liaison] for expenses; and
               (3)  pay costs associated with the storage of evidence:
                     (A)  containing biological material and used in
  the prosecution and conviction of an offense; or
                     (B)  of a sexual assault or other sex offense.
         (c)  On each certification by the department that an amount
  has been deposited to the credit of the general revenue fund from
  deductions from participants' wages under Section 497.0581, the
  comptroller shall transfer an equivalent amount from the general
  revenue fund to the private sector prison industry [expansion]
  account, until the balance in the account is $1 [$2] million.  The
  balance of the account may not exceed $1 million [On a certification
  occurring when the balance in the account is more than $2 million,
  the comptroller shall transfer to the account an amount equal to
  one-half of the amount deposited to the credit of the general
  revenue fund from deductions from participants' wages].
         SECTION 11.  Section 497.057, Government Code, is amended to
  read as follows:
         Sec. 497.057.  RULES. The board [authority] shall adopt
  rules as necessary to ensure that the private sector prison
  industries program authorized by this subchapter is in compliance
  with the federal prison enhancement certification program
  established under 18 U.S.C. Section 1761.
         SECTION 12.  Section 497.058(a), Government Code, is amended
  to read as follows:
         (a)  The board [authority] by rule shall require that
  participants at each private sector prison industries program be
  paid not less than the prison industry enhancement certification
  program (PIECP) wage as computed by the Texas Workforce Commission,
  except that:
               (1)  the board [authority] may permit employers to pay
  a participant the federal minimum wage for the two-month period
  beginning on the date participation begins; and
               (2)  the minimum wage for participants committed to 
  [under the supervision of] the Texas Youth Commission, because of
  the age of the participants and the extensive training component of
  their employment, is the federal minimum wage.
         SECTION 13.  Section 497.0581, Government Code, is amended
  to read as follows:
         Sec. 497.0581.  PARTICIPANT CONTRIBUTIONS; ASSISTANCE
  ACCOUNT. (a)  The board [authority] by rule shall determine the
  amount of deductions to be taken from wages received by the
  participant under this subchapter and the disbursement of those
  deductions. The board [authority] may establish deductions for
  participants committed to [under the supervision of] the Texas
  Youth Commission that are different than deductions established for
  other participants in the program. In determining the amount of
  deductions under this section, the board [authority] shall ensure
  that the deductions do not place the private sector prison
  industries programs in the department in noncompliance with the
  federal prison enhancement certification program established under
  18 U.S.C. Section 1761.
         (b)  The private sector prison industry crime victims
  assistance account is created as an account in the general revenue
  fund. Money in the account may be appropriated only to the board
  [authority] for the purpose of aiding victims of crime, under rules
  adopted by the board [authority].
         SECTION 14.  The heading to Section 497.059, Government
  Code, is amended to read as follows:
         Sec. 497.059.  LIMITING IMPACT OF CERTIFICATION ON
  NON-PRISON INDUSTRY.
         SECTION 15.  Sections 497.059(a) and (b), Government Code,
  are amended to read as follows:
         (a)  The board [authority] may not grant initial
  certification to a private sector prison industries program if the
  board [authority] determines that the operation of the program
  would result in the loss of existing jobs provided by any [the]
  employer in this state.
         (b)  The board [authority] shall adopt rules to determine
  whether a program would cause the loss of existing jobs of a
  specific type provided by an [the] employer in this state.
         SECTION 16.  Subchapter C, Chapter 497, Government Code, is
  amended by adding Sections 497.0595 and 497.0596 to read as
  follows:
         Sec. 497.0595.  LIMITATION ON CONTRACTS. (a)  A
  governmental entity may not enter into a contract or renew a
  contract with an employer for a private sector prison industries
  program under this subchapter if the board determines that the
  contract has negatively affected or would negatively affect any
  employer in this state, including through the loss of existing jobs
  provided by the employer to employees in this state who are not
  incarcerated or imprisoned.
         (b)  The board shall adopt rules that establish a procedure
  to be used in making the determination described by Subsection (a).
  The procedure must allow an aggrieved employer in this state to
  submit a sworn statement to the board alleging that the employer has
  been or would be negatively affected by the contract to be entered
  into or renewed.
         (c)  For the purposes of this section, a contract does not
  negatively affect an employer if the only negative effect alleged
  in a sworn statement by the employer is the loss of existing jobs
  that, at the time the sworn statement is submitted to the board, are
  performed by workers in a foreign country.
         Sec. 497.0596.  NOTICE CONCERNING CERTAIN CONTRACTS.  (a)  
  Not later than the 60th day before the date a governmental entity
  intends to enter into a contract with an employer for a private
  sector prison industries program under this subchapter, the
  governmental entity shall notify:
               (1)  the state senator and state representative in
  whose district the program covered by the contract is or will be
  located;
               (2)  the executive heads of the Texas AFL-CIO, the
  Texas Association of Manufacturers, the National Federation of
  Independent Business/Texas, the Texas Association of Business, and
  the Texas Association of Workforce Boards;
               (3)  the chamber of commerce in any municipality or
  county in which the program covered by the contract is or will be
  located; and
               (4)  any employer that employs persons in this state
  who are not incarcerated or imprisoned and who, as determined under
  rules adopted by the Texas Workforce Commission to implement this
  subdivision:
                     (A)  perform work in the same job descriptions as
  participants in the program covered by the contract will perform;
  or
                     (B)  are otherwise engaged in the manufacture of
  the same or a substantially similar product as will be manufactured
  under the contract.
         (b)  The notice required by Subsection (a) must include a
  specific description, in plain language and in an easily readable
  and understandable format, of any product that will be manufactured
  under the contract.
         (c)  A governmental entity that provides notice under
  Subsection (a) may charge the employer with whom the governmental
  entity intends to enter into the contract for the cost of providing
  that notice.
         SECTION 17.  Sections 497.060, 497.061, and 497.062,
  Government Code, are amended to read as follows:
         Sec. 497.060.  WORKERS' COMPENSATION. The board [authority]
  by rule shall require private sector prison industries program
  employers to meet or exceed all federal requirements for providing
  compensation to participants injured while working.
         Sec. 497.061.  RECIDIVISM STUDIES. The board [authority,
  with the cooperation of the Criminal Justice Policy Council,] shall
  gather data to determine whether participation in a private sector
  prison industries program is a factor that reduces recidivism among
  participants.
         Sec. 497.062.  LIMITATION ON NUMBER OF PARTICIPANTS AND COST
  ACCOUNTING CENTERS[; GOALS]. (a)  The board [authority] may
  certify [any number of] private sector prison industries programs
  that meet or exceed the requirements of federal law and the rules of
  the board. Except as provided by Subsection (b), the board may not
  allow [authority, but in no event may the authority permit] more
  than 750 [5,000] participants in the program at any one time or
  authorize the operation of more than 11 cost accounting centers at
  any one time.
         (b)  The board may allow more than 750 participants in the
  program at one time on a temporary basis if:
               (1)  an employer that operates a private sector prison
  industries program requests in writing that the board temporarily
  allow more than 750 participants in the program; and
               (2)  the board determines that there is good cause to
  temporarily allow more than 750 participants in the program
  [authority shall establish as a goal that the program have at least
  1,800 participants by January 1, 2006].
         SECTION 18.  Subchapter C, Chapter 497, Government Code, is
  amended by adding Sections 497.063 and 497.064 to read as follows:
         Sec. 497.063.  CONTRACT REQUIREMENTS.  (a)  The board shall
  adopt rules requiring a contract entered into by a governmental
  entity concerning a private sector prison industries program
  operated under this subchapter to:
               (1)  include specific job descriptions for any work
  that will be performed by participants under the contract;
               (2)  include a specific description, in plain language
  and in an easily readable and understandable format, of any product
  that will be manufactured under the contract; and
               (3)  charge a private sector prison industries employer
  or other participating entity the fair market value for the lease of
  any property owned by the governmental entity and leased to the
  employer or entity under the contract.
         (b)  For the purposes of Subsection (a), "fair market value" 
  means an amount or rate that is equal to or greater than the average
  amount or rate paid by the state for the lease of substantially
  similar property.
         Sec. 497.064.  AVAILABILITY OF CERTAIN INFORMATION ON
  INTERNET. The board shall make the following information available
  on any publicly accessible Internet website that is maintained by
  the board and contains any information concerning the private
  sector prison industries programs operated under this subchapter:
               (1)  a copy of each current contract entered into by a
  governmental entity;
               (2)  a list of hourly wages paid to participants under
  each contract described by Subdivision (1); and
               (3)  minutes of any meeting of the board in which the
  board discusses or takes action concerning:
                     (A)  the board's powers and duties under this
  subchapter; or
                     (B)  one or more private sector prison industries
  programs operated under this subchapter.
         SECTION 19.  Subchapter A, Chapter 302, Labor Code, is
  amended by adding Section 302.016 to read as follows:
         Sec. 302.016.  RULES REGARDING PRIVATE SECTOR PRISON
  INDUSTRIES PROGRAMS. The commission shall adopt rules necessary to
  implement Section 497.0596(a)(4), Government Code.
         SECTION 20.  Sections 497.009, 497.052, 497.0521, 497.0522,
  497.0523, 497.0524, 497.0525, 497.0526, 497.053, 497.054, and
  497.055, Government Code, are repealed.
         SECTION 21.  (a)  On the date on which the Texas Board of
  Criminal Justice is designated as the certificate holder for this
  state by the Bureau of Justice Assistance, the Private Sector
  Prison Industries Oversight Authority is abolished and all powers,
  duties, obligations, rights, contracts, appropriations, records,
  real or personal property, and personnel of the Private Sector
  Prison Industries Oversight Authority are transferred to the Texas
  Board of Criminal Justice in accordance with Subchapter C, Chapter
  497, Government Code, as amended by this Act.  Notwithstanding any
  other provision of this Act, before the date on which the Texas
  Board of Criminal Justice is designated as the certificate holder
  for this state by the Bureau of Justice Assistance, the Private
  Sector Prison Industries Oversight Authority shall continue to
  fulfill all duties and exercise all powers given to the authority
  under Subchapter C, Chapter 497, Government Code, as that law
  existed immediately before the effective date of this Act, and the
  former law is continued in effect for that purpose.
         (b)  A rule, policy, procedure, or decision of the Private
  Sector Prison Industries Oversight Authority continues in effect as
  a rule, policy, procedure, or decision of the Texas Board of
  Criminal Justice until repealed or otherwise superseded by an act
  of the board.
         (c)  On or after the date on which the Texas Board of Criminal
  Justice is designated as the certificate holder for this state by
  the Bureau of Justice Assistance, a reference in law to the Private
  Sector Prison Industries Oversight Authority means the Texas Board
  of Criminal Justice.
         SECTION 22.  (a)  Except as provided by Section 492.0031(d),
  Government Code, as added by this Act, Sections 492.003(c) and
  492.0031(b-1), Government Code, as amended by this Act, apply only
  to a member of the Texas Board of Criminal Justice who is appointed
  on or after the effective date of this Act. Except as provided by
  Section 492.0031(d), Government Code, as added by this Act, a
  member who is appointed to the board before the effective date of
  this Act is governed by the law in effect when the member was
  appointed, and the former law is continued in effect for that
  purpose.
         (b)  As soon as practicable after the effective date of this
  Act and not later than January 1, 2010, the Texas Workforce
  Commission shall adopt rules as required by Section 302.016, Labor
  Code, as added by this Act.
         (c)  Section 497.051(a-1), Government Code, as added by this
  Act, applies only to the operation of a private sector prison
  industries program that is certified on or after the effective date
  of this Act or to a private sector prison industries program that
  was certified before the effective date of this Act but is not in
  operation on the effective date of this Act. Section 497.051(a-1),
  Government Code, as added by this Act, does not apply to the
  operation of a private sector prison industries program that was
  certified before the effective date of this Act and is in operation
  on the effective date of this Act.  The operation of that program is
  governed by the law in effect when the program was certified, and
  the former law is continued in effect for that purpose.
         (d)  Section 497.059, Government Code, as amended by this
  Act, applies only to the certification of a private sector prison
  industries program that occurs on or after the effective date of
  this Act. The certification of a private sector prison industries
  program that occurs before the effective date of this Act is
  governed by the law in effect when the program was certified, and
  the former law is continued in effect for that purpose.
         (e)  Sections 497.0595 and 497.0596, Government Code, as
  added by this Act, apply only to a contract that is entered into or
  renewed in connection with a private sector prison industries
  program that is certified on or after the effective date of this Act
  or a private sector prison industries program that was certified
  before the effective date of this Act but is not in operation on the
  effective date of this Act. A contract that is entered into or
  renewed in connection with a private sector prison industries
  program that was certified before the effective date of this Act and
  is in operation on the effective date of this Act is governed by the
  law in effect when the program was certified, and the former law is
  continued in effect for that purpose.
         (f)  A rule adopted by the Texas Board of Criminal Justice
  under Section 497.063, Government Code, as added by this Act,
  applies only to a contract in connection with a private sector
  prison industries program that is certified on or after the
  effective date of this Act or to a contract in connection with a
  private sector prison industries program that was certified before
  the effective date of this Act but is not in operation on the
  effective date of this Act.
         SECTION 23.  This Act does not make an appropriation.  A
  provision in this Act that creates a new governmental program,
  creates a new entitlement, or imposes a new duty on a governmental
  entity is not mandatory unless a specific appropriation has been
  made to implement the provision or it is determined by the agency
  that the provisions imposed by this Act may be absorbed within
  agency resources during the fiscal period without additional state
  funding.
         SECTION 24.  This Act takes effect immediately if it
  receives a vote of two-thirds of all the members elected to each
  house, as provided by Section 39, Article III, Texas Constitution.  
  If this Act does not receive the vote necessary for immediate
  effect, this Act takes effect September 1, 2009.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1914 was passed by the House on May 1,
  2009, by the following vote:  Yeas 139, Nays 0, 1 present, not
  voting; that the House refused to concur in Senate amendments to
  H.B. No. 1914 on May 29, 2009, and requested the appointment of a
  conference committee to consider the differences between the two
  houses; and that the House adopted the conference committee report
  on H.B. No. 1914 on May 31, 2009, by the following vote:  Yeas 143,
  Nays 0, 1 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 1914 was passed by the Senate, with
  amendments, on May 23, 2009, by the following vote:  Yeas 25, Nays
  6; at the request of the House, the Senate appointed a conference
  committee to consider the differences between the two houses; and
  that the Senate adopted the conference committee report on H.B. No.
  1914 on May 31, 2009, by the following vote:  Yeas 26, Nays 5.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor