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Prison Industries Act

Summary:

Did you know the
NRA--the National
Rifle Association-was the corporate
co-chair in 2011?

This Act provides for the employment of inmate labor in state correctional institutions and
in the private manufacturing of certain products under specific conditions, and includes
limitations on how prison industries may impact non-prison industries within the state.
The Act also sets forth the requirements and responsibilities of the state commission of
corrections, the governor, and other officers and agencies in relation to inmate
employment in correctional institutions and distribution of products and proceeds from
inmate employment. The purpose of this Act is to reduce recidivism and reduce state
prison costs.

Model Legislation:

CHAPTER ___. Prison Industry

SUBCHAPTER A. GENERAL PROVISIONS

Sec. ____. Definitions.

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In this chapter:

(1) "Articles and products" includes services provided through the use of work program
participant labor.

(2) "Board" means the governing body with oversight authority over the state agency
charged with the day-to-day operation of the state prison system.

(3) "Department" means the state agency charged with the day-to-day operation of the
state prison system.

(4) "Division" means the correctional industries division of the department.

(5) "Work program participant" means a person who:

(A) is an inmate confined in a facility operated by or under contract with the department
or a defendant or releasee housed in a facility operated by or under contract with the
department; and

(B) works at a job assigned by the division.

Exposed

By the Center for
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SUBCHAPTER B. CORRECTIONAL INDUSTRIES

Sec. ____. Purpose; Implementation.

(1) The purposes of the division are to implement this chapter to:

(A) provide work program participants with marketable job skills to help reduce recidivism
through a coordinated program of:

(i) job skills training;

(ii) documentation of work history; and

(iii) access to reintegration resources provided by state agencies; and

(B) reduce department costs by providing products and, articles, and services for the
department and providing products and, articles, and services for sale on a for profit
basis to the public or to agencies of the state or political subdivisions of the state.

(2) To implement the purposes of the division, the department may establish and operate
a prison industries program at each correctional facility that the department considers
suitable for such a program.

Sec. ____. Advisory Committee.

(1) The board shall establish a prison industries advisory committee. The advisory
committee must be composed of ___ members appointed by the board. In appointing
members under this subsection, the board shall appoint persons who represent business
and industry.

(2) The prison industries advisory committee shall advise the board on all aspects of
prison industry operations and shall make recommendations to the board on the effective
use of prison industries programs to assist work program participants in the development
of job skills necessary for successful reintegration into the community after release from
imprisonment.

Sec. ____. Labor; Pay.

(1) 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 Private Sector
Prison Industries Oversight Authority under Subchapter D. 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 Private
Sector Prison Industries Oversight Authority under Subchapter D.
(2) In assigning work program participants to available job training positions in factories,
the department shall consider each participant's classification and availability for work.
The department shall give priority to work program participants closest to release from
imprisonment or supervision in making assignment to those job training positions that
provide the most marketable skills.

Sec. ____. Industrial Receipts.

The division may use money appropriated to the division in amounts corresponding to
receipts from the sale of articles and products under this subchapter to purchase real
property, erect buildings, improve facilities, buy equipment and tools, install or replace
equipment, buy industrial raw materials and supplies, and pay for other necessary
expenses for the administration of this subchapter and Subchapter C.

Exposed

By the Center for
Media and Democracy
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Sec. ____. Contracts With Private Business.

To encourage the development and expansion of prison industries, the division may enter
into necessary contracts related to the prison industries program. With the approval of
the board, the division may enter into a contract with a private business to conduct a
program on or off property operated by the department. A contract entered into under
this section must comply with the Private Sector/Prison Industry Enhancement
Certification Program operated by the Bureau of Justice Assistance and authorized by 18
U.S.C. Section 1761.

Sec. ____. Grants.

The division may accept any grant designated for work program participant vocational
rehabilitation. The division shall maintain records relating to the receipt and disbursement
of grant funds and shall annually report to the board on the administration of grant
funds.

Sec. ____. Lease of Land.

To further the expansion and development of prison industries, the department may
lease prison land to a private business. A lease under this section may not exceed a term
of 50 years. The business must lease the land at a mutually agreed upon price and may
construct or convert plant facilities on the land.

Sec. ____. Offense: Sale or Offer of Sale of Prison Produced Articles or
Products.

(1) A person commits an offense if the person intentionally sells or offers to sell on the
open market in this state an article or product the person knows was manufactured in
whole or in part by an inmate of the department or an inmate in any correctional facility
or reformatory institution in this state or in any other state, other than an inmate:

(A) who was on community supervision, parole, or mandatory supervision;

(B) employed to provide goods or services as permitted by Subchapter C; or

(C) participating in a federally certified prison industry enhancement program.

(2) An offense under this section is a misdemeanor punishable by a fine not to exceed
$5,000 and confinement in county jail for a term not to exceed six months.

Sec. ____. Certain Contracts Prohibited.

The department may not enter into a contract with a private business or public entity
that requires or permits an inmate confined in a correctional facility operated by or for
the department to perform data entry, telemarketing, or related tasks, however, public
safety and privacy must be maintained through technology requiring that inmates do not
have access to personal information about persons who are not confined in facilities
operated by or for the department.

SUBCHAPTER C. SALES OF PRISON MADE ARTICLES OR PRODUCTS

Sec. ____. Authority.

This subchapter governs the sale of prison made products to governmental agencies.

Sec. ____. Contracts.

Exposed

By the Center for
Media and Democracy
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The department may contract with:

(1) another state, the federal government, a foreign government, or an agency of any of
those governments to manufacture for or sell to those governments prison made articles
or products; or

(2) a private school or a visually handicapped person in this state to manufacture Braille
textbooks or other instructional aids for the education of visually handicapped persons.

Sec. ____. Priorities.

Under this subchapter and Subchapter B, the division shall produce products and articles
first to fulfill the needs of agencies of the state and second to fulfill the needs of political
subdivisions or other purchasers.

Sec. ____. Agencies and Political Subdivisions: Duties to Purchase.

(1) If the division produces an article or product under this subchapter, an agency of the
state or a political subdivision may purchase the article or product only from the division.

(2) If the _______ determines that an article or product produced by the division under
this subchapter does not meet the requirements of an agency of the state or a political
subdivision, or that the division has determined that the division is unable to fill a
requisition for an article or product, the agency or subdivision may purchase the article or
product from another source.

(3) An agency of the state or a political subdivision may not evade the intent of this
subchapter by requesting an article or product that varies slightly from standards for
articles or products established under this subchapter if the division produces a similar
article or product that is in compliance with established standards and is reasonably
suited to the actual needs of the agency or subdivision.

(4) This section applies to the department in the same manner as it applies to other
agencies of the state.

(5) The division at least once each year shall determine whether there are articles or
products needed by the department that are not produced by but could be produced by
the office at a reduced cost or savings to the department.

Sec. ____. Purchasing Procedure.

(1) An agency of the state that purchases articles and products under this subchapter
must requisition the purchase through the _______ except for purchases of articles or
products not included in an established contract. The purchase of articles or products not
included in an established contract and that do not exceed $___ may be acquired directly
from the division on the agency's obtaining an informal or a formal quotation for the item
and issuing a proper purchase order to the division.

(2) A political subdivision may purchase articles and products under this subchapter
directly from the division.

(3) If an agency or political subdivision purchasing goods under this subchapter desires
to purchase goods or articles from the division, it may do so without complying with any
other state law otherwise requiring the agency or political subdivision to request
competitive bids for the article or product. A political subdivision is not required to
purchase goods or articles from the division if the political subdivision determines that the
goods or articles can be purchased elsewhere at a lower price. An agency may decline to
purchase goods or articles from the division if the agency determines, after giving the
division a final opportunity to negotiate on price, that the goods or articles can be
purchased elsewhere at a lower price.

Sec. ____. Prices.

Exposed

By the Center for
Media and Democracy
www.prwatch.org

The division shall determine the sales price of articles and products produced under this
subchapter.

Sec. ____. Specifications.

The department shall establish specifications for articles and products produced under
this subchapter. An article or product produced under this subchapter must meet
specifications established under this subsection in effect when the article or product is
produced.

Sec. ____. Catalogs.

The division shall prepare catalogs that accurately and completely describe articles and
products produced under this subchapter. The division shall send copies of the catalogs
to all state agencies and make the catalogs available to political subdivisions.

SUBCHAPTER D. PRIVATE SECTOR PRISON INDUSTRIES OVERSIGHT AUTHORITY

Sec. ____. Purpose; Definition.

(1) The Private Sector Prison Industries Oversight Authority is created to approve, certify,
and oversee the operation of private sector prison industries programs in the department,
the 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
executive director shall provide the authority with clerical and technical support as
necessary for the authority to perform duties imposed on the authority by this
subchapter and shall ensure that the department implements the policies adopted by the
authority that relate to the operation of private sector prison industries programs.

(2) In this subchapter:

(A) "Authority" means the Private Sector Prison Industries Oversight Authority.

(B) "Participant" means a participant in a private sector prison industries program.

Sec. ____. Membership.

(1) The authority is composed of eight members appointed by the governor:

(A) one of whom is representative of organized labor;

(B) one of whom is representative of employers;

(C) one of whom is representative of groups advocating the rights of victims of criminal
offenses;

(D) one of whom is representative of groups advocating the rights of inmates;

(E) one of whom is experienced in the field of vocational rehabilitation; and

(F) three of whom are public members.

(2) The following individuals shall serve as ex officio members of the authority:

Exposed

By the Center for
Media and Democracy
www.prwatch.org

(A) a member of the house of representatives designated by the speaker of the house;

(B) a member of the senate designated by the lieutenant governor;

(C) the executive director of the department or the designee of the executive director;

(D) the executive director of the state agency charged with the day-to-day operation or
employment programs for residents of the state or the designee of the executive director;
and

(E) the executive director of the youth commission or the designee of the executive
director.

(3) The governor shall appoint as an employer liaison to the authority one person who is
an employer in the private sector prison industries program that is certified as in
compliance with the federal prison enhancement certification program established under
18 U.S.C. Section 1761. The employer liaison is entitled to attend meetings of the
authority and offer advice to the authority from the perspective of a prison industries
employer. The employer liaison serves at the pleasure of the governor, is not entitled to
vote on any issue considered by the authority, and is entitled to reimbursement for travel
expenses in the same manner as is a member of the authority under this subchapter.

(4) A person may not be a public member of the authority if the person or the person's
spouse:

(A) is employed by or participates in the management of a business entity or other
organization regulated by or receiving money from the authority;

(B) owns or controls, directly or indirectly, more than a 10 percent interest in a business
entity or other organization regulated by or receiving money from the authority; or

(C) uses or receives a substantial amount of tangible goods, services, or money from the
authority other than compensation or reimbursement authorized by law for authority
membership, attendance, or expenses.
(5) Appointments to the authority shall be made without regard to the race, color,
disability, sex, religion, age, or national origin of the appointees.

Sec. ____. Presiding Officer.

The governor shall designate the presiding officer from among the members of the
authority, and the presiding officer shall serve in that capacity at the pleasure of the
governor.

Sec. ____. Reimbursement.

A member of the authority is not entitled to compensation but is entitled to
reimbursement of the travel expenses incurred by the member while conducting the
business of the authority as provided in the General Appropriations Act.

Sec. ____. Private Sector Prison Industries Expansion Account.

(1) The department shall forward money collected under this subchapter to the
comptroller of public accounts. The comptroller shall deposit the money in the general
revenue fund.

(2) 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 construct work facilities, recruit

Exposed

By the Center for
Media and Democracy
www.prwatch.org

corporations to participate as private sector industries programs, and pay costs of the
authority and department in implementing this subchapter, including the cost to the
department in reimbursing authority members and the employer liaison for expenses.

(3) 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 this
subchapter, the comptroller of public accounts 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 $2 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.

(4) The department during each calendar quarter shall make a certification of the
amount deposited during the previous calendar quarter to the credit of the general
revenue fund from deductions from participants' wages under this subchapter.

Sec. ____. Rules.

The 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. 1761.

Sec. ____. PIECP Wage.

(1) The 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 state agency charged with the day-to-day
operation of employment programs in the state, except that:

(A) the authority may permit employers to pay a participant the federal minimum wage
for the two month period beginning on the date participation begins; and

(B) the minimum wage for participants under the supervision of the youth commission,
because of the age of the participants and the extensive training component of their
employment, is the federal minimum wage.

(2) For the purposes of computations required by this section:

(A) the PIECP wage is the wage paid by the employer for work of a similar nature in the
location in which the work is performed;

(B) in the event that the employer has no employees other than those employed under
this subchapter performing work of a similar nature within the location, the prevailing
wage for work of a similar nature is determined by reference to openings and wages by
occupation data collected by the state agency charged with the day-to-day operation of
employment programs in the state; and

(C) the location in which work is performed is the local workforce development area in
which the work is performed.

Sec. ____. Participant Contributions; Assistance Account.

(1) The authority by rule shall determine the amount of deductions to be taken from
wages received by the participant under this subchapter. The authority may establish
deductions for participants under the supervision of the youth commission that are
different than deductions established for other participants in the program. In
determining the amount of deductions under this section, the 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.

(2) 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

Exposed

By the Center for
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the authority for the purpose of aiding victims of crime, under rules adopted by the
authority.

Sec. ____. Limiting Impact on Non Prison Industry.

(1) The authority may not grant initial certification to a private sector prison industries
program if the authority determines that the operation of the program would result in the
loss of existing jobs provided by the employer in this state.

(2) The authority shall adopt rules to determine whether a program would cause the loss
of existing jobs of a specific type provided by the employer in this state.

(3) For the purposes of this section, 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.

Sec. ____. Workers' Compensation.

The 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. ____. Recidivism Studies.

The authority, with the cooperation of the department, shall gather data to determine
whether participation in a private sector prison industries program is a factor that
reduces recidivism among participants.

Adopted by ALEC's Criminal Justice Task Force at the Spring Task Force Summit May 1,
2004; amended at the Annual Meeting July 29, 2004. Approved by full ALEC Board of
Directors August, 2004.

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