37 TAC § 154.4. Prison Industry Enhancement Certification Program Wages and Non-Displacement of Workers

(a) As provided in this chapter, each private industry interested in establishing a Prison Industries Enhancement (PIE) certification program in a facility operated by or under contract with the Texas Department of Criminal Justice (TDCJ), the Texas Juvenile Justice Department (TJJD), or a county correctional facility shall submit documentation of the prevailing wage for each job classification in the proposal submitted to the Texas Board of Criminal Justice pursuant to 37 Texas Administrative Code §154.7.

(b) The private industry shall obtain written verification from the Texas Workforce Commission (TWC) that the wage plan for the operation of the PIE certification program is consistent with the prevailing wage for each job classification in the locality in which the work will be performed.

(c) Upon receipt of this information, the TDCJ, TJJD, or county correctional facility shall request from the TWC information necessary to certify that:

(1) The private industry will not result in the displacement of employees or the loss of existing jobs of a similar nature by any employer in this state. For the purpose of this rule, a program does not result in the loss of existing jobs if, at the time of initial certification, the jobs are performed by workers in a foreign country; and

(2) The private industry will not be applied in skills, crafts, or trades in which there is a surplus of available gainful labor in the state.

(d) Notwithstanding the provisions of subsection (b), a contract for the provision of services does not require payment of prevailing wages as long as the contract requires the payment of not less than the federal or state minimum wage, whichever is higher.