Subcommittee advances bill letting private prisons use inmate-welfare funds for programs and capital; members seek guardrails

The Criminal Justice Subcommittee advanced HB 913 after a detailed exchange about how inmate-welfare trust funds would be used in private, contractor-operated prisons. Representative Crow (pinch-hitting for sponsor) said the bill would authorize contractor-operated institutions to use inmate-welfare trust funds — monies generated by commissary, phone, tablet and canteen activity — for programs supporting reintegration, facility repairs and certain fixed capital outlays, similar to state-operated facilities.

Lawmakers pressed whether those trust funds are public, how they would be spent, and whether the private facility owners could divert funds away from reentry programs into capital improvements. Representatives warned that without guardrails, the monies could be used primarily for capital projects at privately owned facilities rather than prisoner programs. The sponsor said repairs over $5,000 would be funded through per-diem deductions and a major maintenance reserve; smaller items are funded through contract per-diem rates.

The bill also aligns compensation for inmate emergency and specialty medical services with applicable Medicaid rates and allows negotiated flexibility for services delivered securely or by telehealth. A title amendment narrowed permitted uses and the committee adopted the amendment. After debate and public testimony, HB 913 was reported favorably as amended, 14 yeas, 2 nays.