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.