PRIOR PRINTER'S NO. 2349                      PRINTER'S NO. 3801

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1931 Session of 1993


        INTRODUCED BY CALTAGIRONE AND GERLACH, JUNE 23, 1993

        AS REPORTED FROM COMMITTEE ON JUDICIARY, HOUSE OF
           REPRESENTATIVES, AS AMENDED, JUNE 6, 1994

                                     AN ACT

     1  Establishing the Joint Venture Enterprise PRIVATE SECTOR PRISON   <--
     2     INDUSTRY Board and providing for its powers and duties;
     3     providing for employment of inmates by private industry and
     4     for subcontracts with correctional agencies; establishing
     5     guidelines for inmate compensation; providing for location of
     6     joint ventures PRIVATE SECTOR PRISON INDUSTRY; and making      <--
     7     repeals.

     8     The General Assembly of the Commonwealth of Pennsylvania
     9  hereby enacts as follows:
    10  Section 1.  Short title.
    11     This act shall be known and may be cited as the Inmate         <--
    12  Employment Through Joint Ventures PRIVATE SECTOR PRISON INDUSTRY  <--
    13  Act.
    14  Section 2.  Intent.
    15     It is the intent of the General Assembly that joint ventures   <--
    16  between correctional agencies and private industry be
    17  established so that inmates incarcerated in State and county
    18  correctional facilities may be productively engaged. Private      <--
    19  industry in this Commonwealth will thereby become more


     1  competitive in the marketplace while not displacing or impairing
     2  job opportunities for civilian labor in the community. IT IS THE  <--
     3  SPECIFIC INTENT OF THE GENERAL ASSEMBLY TO RESTRICT THE USE AND
     4  AVAILABILITY OF SUCH INMATE LABOR AND TO REGULATE ITS USE IN
     5  SUCH A FASHION AS TO ASSURE THAT NO INMATE LABOR MAY BE USED TO
     6  LIMIT, IN ANY WAY, FULL-TIME OR PART-TIME WORK OPPORTUNITIES FOR
     7  UNEMPLOYED OR UNDEREMPLOYED RESIDENTS OF THIS COMMONWEALTH. NOR
     8  WILL PRIVATE SECTOR PRISON INDUSTRY RESULT IN THE IMPAIRMENT OF
     9  EXISTING CONTRACTS FOR SERVICES OR COLLECTIVE BARGAINING
    10  AGREEMENTS FOR CIVILIAN LABORERS. Inmates who volunteer and are
    11  deemed eligible for these jobs will be better able to:
    12         (1)  Develop positive work habits that will assist them
    13     in securing and holding gainful employment in the public and
    14     private sectors SUBSEQUENT TO THEIR RELEASE FROM               <--
    15     INCARCERATION.
    16         (2)  Pay a reasonable portion of the room and board in a
    17     correctional facility.
    18         (3)  Accept responsibility for the consequences of their
    19     acts by compensating victims of crime through deductions from
    20     their earnings.
    21         (4)  Assist in providing PROVIDE financial assistance to   <--
    22     their dependents, thus strengthening and promoting family
    23     ties while reducing the likelihood that their families may
    24     eventually have to rely upon public assistance.
    25  Section 3.  Definitions.
    26     The following words and phrases when used in this act shall
    27  have the meanings given to them in this section unless the
    28  context clearly indicates otherwise:
    29     "Board."  The Joint Venture Enterprise Board.                  <--
    30     "Certification."  Written assurance by appropriate
    19930H1931B3801                  - 2 -

     1  correctional authorities at all levels of government that a
     2  prison-based enterprise meets statutory and guideline
     3  requirements established by the Justice Assistance Act of 1984
     4  (Public Law 98-473, 42 U.S.C. § 3701 et seq.).
     5     "BOARD."  THE PRIVATE SECTOR PRISON INDUSTRY BOARD.            <--
     6     "CERTIFICATION."  WRITTEN ASSURANCE BY THE PRIVATE SECTOR
     7  PRISON INDUSTRY BOARD THAT A PRIVATE SECTOR PRISON INDUSTRY
     8  MEETS STATUTORY AND GUIDELINE REQUIREMENTS ESTABLISHED BY THE
     9  JUSTICE ASSISTANCE ACT OF 1984 (PUBLIC LAW 98-473, 98 STAT. 2077
    10  ET SEQ.).
    11     "Compensation board."  The Crime Victim's Compensation Board
    12  of the Commonwealth.
    13     "County commissioners."  Elected county commissioners, or the
    14  equivalent governing body of any county, regardless of form of
    15  government.
    16     "Department."  The Department of Corrections of the
    17  Commonwealth.
    18     "Joint ventures."  A public or private partnership in which    <--
    19  goods or services are produced in prison or on property under
    20  the auspices of a correctional authority and sold on the open
    21  market.
    22     "Open market."  Unrestricted stream of commerce within this
    23  Commonwealth and outside the borders of this Commonwealth in
    24  interstate commerce.
    25     "Private business, private enterprise or nonprofit entity."
    26  An individual, firm, partnership, corporation or other lawful
    27  commercial enterprise or nonprofit organization which, under
    28  this act, participates in a joint venture and employs service of  <--
    29  OPERATES A PRIVATE SECTOR PRISON INDUSTRY AND EMPLOYS State or    <--
    30  county inmates. Any joint venture established under this act      <--
    19930H1931B3801                  - 3 -

     1  shall be subject to the laws, rules and regulations governing
     2  the operation of similar enterprises in this Commonwealth.
     3     "Private enterprise."  The joint venture established under
     4  this section is a private enterprise subject to the laws, rules
     5  and regulations governing the operation of similar enterprises
     6  in this Commonwealth.
     7     "PRIVATE SECTOR PRISON INDUSTRY."  A PRIVATE BUSINESS,         <--
     8  PRIVATE ENTERPRISE OR NONPROFIT ENTITY WHICH PRODUCES GOODS OR
     9  SERVICES EMPLOYING INMATE LABOR IN OR ON THE PROPERTY OF A STATE
    10  OR COUNTY CORRECTIONAL FACILITY.
    11     "Program."  The Private Sector Prison Industry Enhancement
    12  Certification Program established by the Justice Assistance Act
    13  of 1984 (Public Law 98-474, 42 U.S.C. § 3701 et seq.) 98 STAT.    <--
    14  2077 ET SEQ.).
    15  Section 4.  Joint Venture Enterprise PRIVATE SECTOR PRISON        <--
    16                 INDUSTRY Board.
    17     (a)  Establishment.--There is hereby established a board to
    18  be known as the Joint Venture Enterprise PRIVATE SECTOR PRISON    <--
    19  INDUSTRY Board.
    20     (b)  Composition.--The board shall consist of nine 12 members  <--
    21  as follows:
    22         (1)  The Secretary of Corrections LABOR AND INDUSTRY or    <--
    23     his designee who shall serve as chairman.
    24         (2)  The Secretary of Labor and Industry CORRECTIONS or    <--
    25     his designee.
    26         (3)  The president of the AFL-CIO of Pennsylvania or his
    27     designee.
    28         (4)  Two county commissioners nominated by the
    29     Pennsylvania State Association of County Commissioners COUNTY  <--
    30     COMMISSIONERS ASSOCIATION OF PENNSYLVANIA and appointed by
    19930H1931B3801                  - 4 -

     1     the Governor.
     2         (5)  One member of the Senate appointed by the President   <--
     3     pro tempore of the Senate.
     4         (6)  One member of the House of Representatives appointed
     5     by the Speaker of the House of Representatives.
     6         (7)  Two members nominated by the department and
     7     appointed by the Governor. One of these members shall be
     8     representative of private industry and one shall be the
     9     correctional administrator from a county correctional
    10     facility operating a joint venture.
    11     (c)  Terms.--The terms of the members are as follows:
    12         (1)  Three years for the member of the Senate and the
    13     member of the House of Representatives.
    14         (2)  Three years for one of the county commissioners and
    15     one year for the other.
    16         (3)  Two years for the member representing private
    17     industry.
    18         (4)  One year for the county correctional administrator.
    19     (d)  Reappointment.--Each member of the board may be eligible
    20  for reappointment. Each member shall continue to serve after the
    21  expiration of his term until a successor is appointed.
    22     (e)  Removal.--A member may be removed by the Governor due to
    23  inefficiency, neglect of duty or malfeasance in office.
    24     (f)  Vacancies.--Vacancies shall be filled by the original
    25  appointing authority for the remainder of the unexpired term.
    26  The vacancies shall be filled within 90 days of the occurrence
    27  of the vacancy.
    28         (5)  TWO MEMBERS OF THE SENATE, ONE APPOINTED BY THE       <--
    29     PRESIDENT PRO TEMPORE AND ONE APPOINTED BY THE MINORITY
    30     LEADER.
    19930H1931B3801                  - 5 -

     1         (6)  TWO MEMBERS OF THE HOUSE OF REPRESENTATIVES, ONE
     2     APPOINTED BY THE SPEAKER AND ONE APPOINTED BY THE MINORITY
     3     LEADER.
     4         (7)  ONE COUNTY JAIL WARDEN AS APPOINTED BY THE GOVERNOR.
     5         (8)  ONE REPRESENTATIVE OF ORGANIZED LABOR AND ONE
     6     REPRESENTATIVE FROM THE PENNSYLVANIA CHAMBER OF BUSINESS AND
     7     INDUSTRY EACH APPOINTED BY THE GOVERNOR FROM A LIST SUBMITTED
     8     BY THE AFL-CIO AND THE CHAMBER, RESPECTIVELY.
     9     (C)  TERMS.--THE MEMBERS OF THE BOARD SHALL SERVE FOR A TERM
    10  OF FOUR YEARS.
    11     (g) (D)  Meetings.--The board shall meet annually and upon     <--
    12  the request of the chairman or three or more members. All
    13  meetings shall be open to the public IN ACCORDANCE WITH THE ACT   <--
    14  OF JULY 3, 1986 (P.L.388, NO.84), KNOWN AS THE SUNSHINE ACT.
    15     (h)  Quorum.--Seven members shall constitute a quorum, and a   <--
    16  vote of the majority of members shall be necessary for the
    17  transaction of the business of the board.
    18     (E)  QUORUM.--FOR THE TRANSACTION OF GENERAL BUSINESS OF THE   <--
    19  BOARD, NINE MEMBERS SHALL CONSTITUTE A QUORUM. A POSITIVE VOTE
    20  OF NINE OF THE TWELVE MEMBERS WILL BE NECESSARY FOR A PRIVATE
    21  SECTOR PRISON INDUSTRY APPLICATION TO BE APPROVED. EACH APPROVAL
    22  OF A PRIVATE SECTOR PRISON INDUSTRY APPLICATION SHALL BE MADE BY
    23  A VOTE AT A DULY CONSTITUTED MEETING OF THE BOARD.
    24     (i) (F)  Compensation.--Members shall receive no compensation  <--
    25  for their services on the board, but shall be reimbursed by the
    26  department for all reasonable and necessary expenses in
    27  accordance with the rules of the Executive Board.
    28  Section 5.  Powers and duties of board.
    29     The board shall have the powers and duties to:
    30         (1)  Apply to the United States Department of Justice for
    19930H1931B3801                  - 6 -

     1     certification of prospective prison-based joint venture        <--
     2     programs to be operated by either the department or any
     3     county correctional authority PRIVATE SECTOR PRISON            <--
     4     INDUSTRIES in this Commonwealth.
     5         (2)  Act as an intermediary between any correctional
     6     agency in this Commonwealth and the United States Department
     7     of Justice in matters related to the certification of prison-  <--
     8     based joint ventures PRIVATE SECTOR PRISON INDUSTRIES in this  <--
     9     Commonwealth.
    10         (3)  Establish procedures for determining whether a
    11     prospective joint venture PRIVATE SECTOR PRISON INDUSTRY       <--
    12     proposed by the department or any county correctional agency
    13     complies with the requirements of the program AND ALL OTHER    <--
    14     STATE LAW NOT INCONSISTENT WITH THIS ACT.
    15         (4)  Determine whether a prospective joint venture shall   <--
    16     be designated as an enterprise participating in the program
    17     and whether any designation previously approved shall be
    18     revoked.
    19         (4)  APPROVE OR DISAPPROVE A PROSPECTIVE PRIVATE SECTOR    <--
    20     PRISON INDUSTRY FOR INCLUSION AND/OR CONTINUATION IN THE
    21     PROGRAM.
    22         (5)  Monitor all joint ventures designated as              <--
    23     participants in the program PRIVATE SECTOR PRISON INDUSTRY to  <--
    24     ensure continuing compliance with rules and regulations
    25     promulgated by the United States Department of Justice under
    26     the provisions of the program THIS ACT AND CONTINUING          <--
    27     COMPLIANCE WITH STATE LAW AND FORWARD ANY COMPLAINTS OR
    28     NOTICES OF VIOLATION OF APPLICABLE STATE LAW TO THE
    29     APPROPRIATE ENFORCEMENT AUTHORITY.
    30         (6)  Issue an annual report by January 31 of each
    19930H1931B3801                  - 7 -

     1     calendar year to the Governor, the Judiciary Committee of the
     2     Senate and the Judiciary Committee of the House of
     3     Representatives detailing the status of prison-based joint
     4     ventures in this Commonwealth.
     5         (7)  Designate which services TO BE performed or articles  <--
     6     manufactured or assembled by inmates are conforming to the
     7     program REGULATIONS and can be sold on the open market.        <--
     8  Section 6.  Minimum requirements of joint venture programs        <--
     9                 PRIVATE SECTOR PRISON INDUSTRY.                    <--
    10     (a)  Requirements enumerated.--A joint venture PRIVATE SECTOR  <--
    11  PRISON INDUSTRY shall not be certified unless the applicants      <--
    12  PRIVATE BUSINESS, PRIVATE ENTERPRISE OR NONPROFIT ORGANIZATION    <--
    13  CAN demonstrate that:
    14         (1)  The applicants, meaning the private business,         <--
    15     private entity PRIVATE BUSINESS, PRIVATE ENTERPRISE OR         <--
    16     NONPROFIT ORGANIZATION, the department or the governing
    17     authority of the county correctional system, whichever is
    18     applicable, consulted with local union central bodies and
    19     will WITH local businesses that may be affected by the joint   <--
    20     venture PRIVATE SECTOR PRISON INDUSTRY, prior to the           <--
    21     initiation of the application for certification.
    22         (2)  THE PRIVATE BUSINESS, PRIVATE ENTERPRISE OR           <--
    23     NONPROFIT ENTITY HAS IN PLACE A REAL AND AFFIRMATIVE TRAINING
    24     ELEMENT WHICH WILL TRAIN INMATES TO PREPARE RESUMES AND FILL
    25     OUT APPLICATION FORMS FOR EMPLOYMENT UPON RELEASE.
    26         (2)  The applicants have (3)  THE PRIVATE BUSINESS,        <--
    27     PRIVATE ENTERPRISE OR NONPROFIT ENTITY HAS verified with the
    28     Department of Labor and Industry that, if certified, the
    29     joint venture PRIVATE SECTOR PRISON INDUSTRY will not:         <--
    30             (i)   demonstrably result in the displacement of       <--
    19930H1931B3801                  - 8 -

     1         employees in the surrounding community OR DENY WORK        <--
     2         OPPORTUNITIES TO UNEMPLOYED OR UNDEREMPLOYED INDIVIDUALS
     3         OR COMPETE WITH ANY THEN EXISTING BUSINESS OR EMPLOYER
     4         OPERATING IN THIS COMMONWEALTH;
     5             (ii)  be applied in skills, crafts or trades OR IN     <--
     6         UNSKILLED OR SEMISKILLED WORK in which there is a surplus
     7         of available labor in the LABOR MARKET area in which the   <--
     8         joint venture PRIVATE SECTOR PRISON INDUSTRY is to be      <--
     9         located; or
    10             (iii)  impair existing contracts for GOODS AND         <--
    11         services. Further, a contract shall not be executed by or
    12         with a joint venture PRIVATE SECTOR PRISON INDUSTRY        <--
    13         employer that will permit the employment of inmates in
    14         the same job classifications as noninmate employees of     <--
    15         the same employer OR SIMILAR WORK DUTIES OR ASSIGNMENTS    <--
    16         AS INDIVIDUALS who are on strike, as defined in the act
    17         of June 1, 1937 (P.L.1168, No.294), known as the
    18         Pennsylvania Labor Relations Act, OR WHO ARE OTHERWISE     <--
    19         INVOLVED IN A LABOR DISPUTE AS THAT TERM IS DEFINED BY
    20         FEDERAL AND STATE LAW, INCLUDING, BUT NOT LIMITED TO, A
    21         LOCKOUT. ANY PRIVATE SECTOR PRISON INDUSTRY EMPLOYER
    22         FOUND TO VIOLATE THIS SECTION SHALL BE SUBJECT TO A FINE
    23         OF NOT LESS THAN $10,000. LIABILITY FOR ANY SUCH FINE
    24         IMPOSED PURSUANT TO THIS SECTION SHALL APPLY PERSONALLY
    25         TO EVERY CORPORATE OFFICER OF ANY CORPORATION WHICH IS
    26         DETERMINED TO HAVE VIOLATED THIS SECTION. DETERMINATIONS
    27         WITH RESPECT TO VIOLATIONS OF THIS SECTION SHALL BE MADE
    28         BY THE SECRETARY OF LABOR AND INDUSTRY OR HIS DESIGNEE.
    29     (b)  Minimum provisions.--Any joint venture PRIVATE SECTOR     <--
    30  PRISON INDUSTRY certified under this act shall provide for the
    19930H1931B3801                  - 9 -

     1  following:
     2         (1)  That all inmate employment shall be voluntary.
     3         (2)  That all inmates shall be compensated by the private
     4     entity BUSINESS, PRIVATE ENTERPRISE OR NONPROFIT ENTERPRISE    <--
     5     at a rate which is comparable to wages THE PREVAILING RATE OF  <--
     6     WAGES, INCLUDING, BUT NOT LIMITED TO, THE VALUE OF ALL
     7     EMPLOYEE BENEFITS paid for work of a similar nature in
     8     private industry in the locality in which the project is
     9     located, as determined after consultation with the Department
    10     of Labor and Industry. In no circumstances shall an inmate
    11     receive compensation which is less than the minimum wage
    12     established by Federal law unless such lesser compensation is  <--
    13     consistent with Federal law. OR STATE LAW, WHICHEVER IS        <--
    14     GREATER, AND IS APPLICABLE TO THE TYPE OF WORK BEING
    15     PERFORMED. HOWEVER, NO INMATE MAY QUALIFY FOR UNEMPLOYMENT
    16     INSURANCE PAYMENTS WHILE INCARCERATED.
    17         (3)  That all inmates shall have deducted from any
    18     compensation received:
    19             (i)  Federal, State and local taxes.
    20             (ii)  Any court-ordered financial obligation,
    21         including victim restitution, fines, etc.
    22             (iii)  A portion of the room and board in a
    23         correctional facility as determined by the department or
    24         the governing body of the county correctional agency.
    25             (iv)  An allocation for support of the inmate's
    26         immediate family under statute or court order or under
    27         any other financial obligation acknowledged in writing by
    28         the inmate.
    29             (v)  Mandatory deposit of not less than 5% nor more
    30         than 20% of gross wages to the compensation board. All
    19930H1931B3801                 - 10 -

     1         funds collected by the compensation board shall be used
     2         to compensate crime victims in the manner provided by
     3         law. Any remaining amount shall be maintained by the
     4         appropriate correctional authority in a fund in the
     5         inmate's name. The amount remaining shall be returned to
     6         the inmate at the time of release. The correctional
     7         authority may, however, permit the inmate to draw a
     8         portion of the money for other purposes deemed to be
     9         appropriate by the correctional authority.
    10     No other deductions shall be permitted.
    11         (4)  The provision of benefits and compensation to inmate
    12     workers for injuries sustained in the course of employment
    13     provided for in this act.
    14         (5)  ANY PORTION OF THE RATE PAYABLE TO AN INMATE WHICH    <--
    15     IS ATTRIBUTABLE TO THE VALUE OF THE BENEFITS USED IN
    16     COMPUTING THE PREVAILING WAGE AND NOT OTHERWISE DEDUCTIBLE
    17     UNDER THIS SECTION SHALL BE PAID TO THE INCARCERATING
    18     AUTHORITY AND BE PLACED IN A FUND SET ASIDE FOR THE PURPOSE
    19     OF VOCATIONAL AND EDUCATIONAL PROGRAM DEVELOPMENT AT THE
    20     INSTITUTION HOUSING THE INMATE.
    21     (c)  Priorities.--When reviewing potential joint venture       <--
    22  enterprises PRIVATE SECTOR PRISON INDUSTRY, the council BOARD     <--
    23  shall consider the impact on the employment of persons in the
    24  private business sector of this Commonwealth and give priority    <--
    25  consideration to establishing joint ventures which will retain
    26  or reclaim jobs in this Commonwealth, support emerging
    27  Commonwealth industries or create jobs for a deficient labor
    28  market. INCLUDE CONSIDERATION OF THE IMPACT ON WORKERS, THE       <--
    29  UNEMPLOYED AND UNDEREMPLOYED AS WELL AS UPON THE COMMUNITY.
    30  Section 7.  Employment of inmates by private industry.
    19930H1931B3801                 - 11 -

     1     (a)  Contract and supervision.--Upon the approval of the
     2  board, the department or a county correctional facility, with
     3  the approval of its governing board and the county
     4  commissioners, may enter into contracts with a private business,
     5  private entity ENTERPRISES or nonprofit entity to permit the      <--
     6  employment of inmates to perform designated work. Inmates so      <--
     7  employed who are in the custody of the department shall be
     8  supervised by employees of the department. Inmates so employed
     9  who are in the custody of a county facility shall be supervised
    10  by county employees. THE DEPARTMENT SHALL REMAIN RESPONSIBLE FOR  <--
    11  THE CUSTODY OF THE DEPARTMENT INMATES EMPLOYED IN A PRIVATE
    12  SECTOR PRISON INDUSTRY; HOWEVER, ALL SUPERVISION OF THE INMATE
    13  EMPLOYEE WHICH IS RELATED TO THAT INMATE'S EMPLOYMENT IS THE
    14  SOLE RESPONSIBILITY OF THE PRIVATE SECTOR PRISON INDUSTRY
    15  EMPLOYER. THE COUNTY FACILITY SHALL REMAIN RESPONSIBLE FOR THE
    16  CUSTODY OF COUNTY INMATES EMPLOYED IN A PRIVATE SECTOR PRISON
    17  INDUSTRY; HOWEVER, ALL SUPERVISION OF THE INMATE EMPLOYEE WHICH
    18  IS RELATED TO THAT INMATE'S EMPLOYMENT IS THE SOLE
    19  RESPONSIBILITY OF THE PRIVATE SECTOR PRISON INDUSTRY EMPLOYER.
    20  THE CONTRACTUAL ARRANGEMENT AUTHORIZED BY THIS ACT SHALL NOT
    21  CREATE ANY THIRD-PARTY RIGHTS IN ANY INMATE.
    22     (b)  Status of inmate.--For the purposes of this act, inmates
    23  employed under section 6(a) shall be considered to be employees
    24  of the private business, private entity ENTERPRISE or nonprofit   <--
    25  entity. No inmate compensated for participation in the program
    26  shall be considered to be an employee of the Commonwealth or the
    27  county nor shall they be afforded the rights and privileges of
    28  Commonwealth or county employees.
    29     (c)  Certain rights preserved.--Nothing contained in this
    30  section shall be deemed to restore, in whole or in part, the
    19930H1931B3801                 - 12 -

     1  civil rights of participating inmates; however, participating
     2  inmates shall be afforded the protection of the Fair Labor
     3  Standards Act of 1938 (52 Stat. 1060, 29 U.S.C. § 201 et seq.)
     4  and the act of June 2, 1915 (P.L.736, No.338), known as The       <--
     5  Pennsylvania Workmen's Compensation Act., TITLE VII OF THE CIVIL  <--
     6  RIGHTS ACT OF 1964 (PUBLIC LAW 88-352, 78 STAT. 241), THE AGE
     7  DISCRIMINATION ACT OF 1975 (PUBLIC LAW 94-135, 42 U.S.C. § 6101
     8  ET SEQ.), THE NATIONAL LABOR RELATIONS ACT (49 STAT. 449, 29
     9  U.S.C. § 151 ET SEQ.), THE AMERICANS WITH DISABILITIES ACT OF
    10  1990 (PUBLIC LAW 101-336, 104 STAT. 327), THE ACT OF JUNE 2,
    11  1915 (P.L.736, NO.338), KNOWN AS THE WORKERS' COMPENSATION ACT,
    12  THE ACT OF JUNE 1, 1937 (P.L.1168, NO.294), KNOWN AS THE
    13  PENNSYLVANIA LABOR RELATIONS ACT, THE ACT OF OCTOBER 27, 1955
    14  (P.L.744, NO.222), KNOWN AS THE PENNSYLVANIA HUMAN RELATIONS
    15  ACT, THE ACT OF JULY 14, 1961 (P.L.637, NO.329), KNOWN AS THE
    16  WAGE PAYMENT AND COLLECTION LAW, AND THE ACT OF JANUARY 17, 1968
    17  (P.L.11, NO.5), KNOWN AS THE MINIMUM WAGE ACT OF 1968, AS THEY
    18  PERTAIN TO THE PRIVATE SECTOR PRISON INDUSTRY EMPLOYER ONLY.
    19     (d)  Consent to deduction.--An inmate may participate in the
    20  program established pursuant to this act only on a voluntary
    21  basis and must consent, in advance, to the specific deductions
    22  from gross wages, as set forth in section 6(b)(3).
    23     (e)  Ineligibility for unemployment compensation.--Inmates     <--
    24  participating in a joint venture established under this act are
    25  declared ineligible to collect benefits under the act of
    26  December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1), known as
    27  the Unemployment Compensation Law, while in the custody of the
    28  department or a county correctional authority, nor shall any
    29  inmate be eligible to collect these benefits upon release from
    30  custody based, in whole or in part, upon credits earned through
    19930H1931B3801                 - 13 -

     1  employment with a prison-based joint venture enterprise.
     2  Section 8.  Disposition of inmate wages.
     3     (a)  Joint ventures through department.--All wages of inmates  <--
     4  participating in joint ventures established under the auspices
     5  of the department shall be surrendered to the department and
     6  shall be subject to deductions as determined by the department.
     7     (b)  Joint ventures through governing authority of county
     8  correctional facility.--All wages of inmates participating in
     9  joint ventures established under the auspices of the governing
    10  authority of a county correctional facility shall be surrendered
    11  to the correctional facility wherein the inmate is incarcerated
    12  and shall be subject to deductions as determined by the
    13  governing authority.
    14     (A)  INMATES WITHIN DEPARTMENT.--ALL WAGES OF DEPARTMENT       <--
    15  INMATES EMPLOYED BY A PRIVATE SECTOR PRISON INDUSTRY SHALL BE
    16  DELIVERED BY THE PRIVATE SECTOR PRISON INDUSTRY EMPLOYER
    17  DIRECTLY TO THE DEPARTMENT AND SHALL BE SUBJECT TO DEDUCTIONS AS
    18  DETERMINED BY THE DEPARTMENT.
    19     (B)  INMATES WITHIN COUNTY CORRECTIONAL FACILITIES.--ALL
    20  WAGES OF COUNTY INMATES EMPLOYED BY A PRIVATE SECTOR PRISON
    21  INDUSTRY SHALL BE DELIVERED BY THE PRIVATE SECTOR PRISON
    22  INDUSTRY EMPLOYER DIRECTLY TO THE COUNTY CORRECTIONAL FACILITY
    23  WHEREIN THE INMATE IS INCARCERATED AND SHALL BE SUBJECT TO
    24  DEDUCTIONS AS DETERMINED BY THE GOVERNING AUTHORITY.
    25     (c)  Deductions.--Deductions taken from inmate wages as
    26  specified in section 6(b)(3), which deductions shall not exceed
    27  80% of gross wages. EACH INMATE EMPLOYED WILL RECEIVE A DETAILED  <--
    28  WRITTEN STATEMENT DEMONSTRATING THE ACTUAL AMOUNT OF EACH
    29  DEDUCTION AND THE BASIS THEREFORE, AND WAGES SHALL BE PAID TO
    30  THE DEPARTMENT OR COUNTY CORRECTIONAL FACILITY NO LESS
    19930H1931B3801                 - 14 -

     1  FREQUENTLY THAN BIWEEKLY FOR DEPOSIT INTO THE INMATE'S
     2  INSTITUTIONAL ACCOUNT.
     3  Section 9.  Lease of prison property to private businesses,
     4                 private entities or nonprofit entities ENTERPRISE  <--
     5                 OR NONPROFIT ENTITY.
     6     The department or the county commissioners may lease any
     7  portion of the buildings or grounds of any correctional facility
     8  to the private business, PRIVATE ENTERPRISE or nonprofit entity   <--
     9  participating in a joint venture for a term not to exceed 20      <--
    10  years. OPERATING A PRIVATE SECTOR PRISON INDUSTRY FOR A TERM NOT  <--
    11  TO EXCEED 20 YEARS. ANY IMPROVEMENTS, CONSTRUCTION, DEMOLITION,
    12  RENOVATION, BUILDING OR RELATED UNDERTAKING ON ANY PORTION OF
    13  THE BUILDINGS OR GROUNDS SO LEASED SHALL CONCLUSIVELY BE
    14  PRESUMED TO BE PUBLIC WORKS AND AS SUCH BE SUBJECT TO ALL OF THE
    15  CONSTITUTIONAL AND STATUTORY REQUIREMENTS REGARDING PUBLIC
    16  WORKS, INCLUDING, BUT NOT LIMITED TO, THE ACT OF AUGUST 15, 1961
    17  (P.L.987, NO.442), KNOWN AS THE PENNSYLVANIA PREVAILING WAGE
    18  ACT, COMPETITIVE BID LAWS, PUBLIC ADVERTISING REQUIREMENTS AND
    19  BONDING REQUIREMENTS.
    20  Section 10.  Regulations.
    21     The department shall promulgate the regulations necessary to
    22  carry out this act.
    23  Section 11.  Administrative support.
    24     The department shall provide the board with reasonable
    25  administrative and clerical support services subject to the
    26  availability of funds.
    27  Section 12.  Repeals.                                             <--
    28     (a)  Specific repeals.--The following acts and parts of acts
    29  are repealed:
    30     Section 2 of the act of June 13, 1883 (P.L.132, No.99),
    19930H1931B3801                 - 15 -

     1  entitled "An act to abolish the contract system in the prisons
     2  and reformatory institutions of the State of Pennsylvania, and
     3  to regulate the wages of the inmates."
     4     (b)  General repeals.--All acts and parts of acts are
     5  repealed insofar as they are inconsistent with this act. This
     6  act shall not, however, affect or change the method or manner of
     7  inmate work assignments within said prisons.
     8  SECTION 12.  IMMUNITIES NOT WAIVED.                               <--
     9     NO PROVISION OF THIS ACT WAIVES OR IMPAIRS ANY SOVEREIGN,
    10  GOVERNMENTAL, QUALIFIED OR OTHER IMMUNITY FROM OR DEFENSE
    11  AGAINST SUIT AVAILABLE TO THE COMMONWEALTH AND ITS DEPARTMENTS,
    12  BOARDS, OFFICERS, EMPLOYEES AND AGENTS OR THE POLITICAL
    13  SUBDIVISIONS OF THIS COMMONWEALTH AND THEIR AGENCIES, OFFICERS
    14  AND EMPLOYEES.
    15  SECTION 13.  INMATE CIVIL ACTIONS.
    16     NO INMATE MAY BRING A CIVIL ACTION BEFORE ANY COURT,
    17  INDEPENDENT COMMISSION OR BOARD OF THIS COMMONWEALTH AGAINST THE
    18  BOARD, THE COMMONWEALTH OR ITS AGENCIES, OFFICERS OR EMPLOYEES
    19  OR THE POLITICAL SUBDIVISIONS OF THIS COMMONWEALTH AND THEIR
    20  AGENCIES, OFFICERS AND EMPLOYEES BASED UPON A CONTRACTUAL
    21  ARRANGEMENT AUTHORIZED BY THIS ACT.
    22  SECTION 14.  CONSTRUCTION OF ACT.
    23     NO PROVISION OF THIS ACT SHALL BE CONSTRUED AS CREATING A
    24  CIVIL CAUSE OF ACTION AGAINST THE BOARD, THE COMMONWEALTH OR ITS
    25  AGENCIES, OFFICERS OR EMPLOYEES OR THE POLITICAL SUBDIVISIONS OF
    26  THIS COMMONWEALTH AND THEIR AGENCIES, OFFICERS AND EMPLOYEES.
    27  NOTHING IN THIS ACT SHALL CREATE AN ENFORCEABLE RIGHT IN ANY
    28  PERSON TO OBTAIN OR RETAIN EMPLOYMENT IN PRIVATE SECTOR PRISON
    29  INDUSTRY. NOTHING IN THIS ACT SHALL REQUIRE THE DEPARTMENT OR
    30  ANY COUNTY TO PROPOSE OR PERMIT A PRIVATE SECTOR PRISON INDUSTRY
    19930H1931B3801                 - 16 -

     1  WITHIN THE CORRECTIONAL FACILITY.
     2  SECTION 15.  REPEALS.
     3     ALL ACTS AND PARTS OF ACTS ARE REPEALED INSOFAR AS THEY ARE
     4  INCONSISTENT WITH THIS ACT. THIS ACT SHALL NOT, HOWEVER, AFFECT
     5  OR CHANGE THE METHOD OR MANNER OF INMATE WORK ASSIGNMENTS WITHIN
     6  SAID PRISONS OR THE STATUTORY AUTHORITY TO COMPEL SUCH LABOR ON
     7  BEHALF OF THE COMMONWEALTH OR ANY POLITICAL SUBDIVISION THEREOF.
     8  Section 13 16.  Effective date.                                   <--
     9     This act shall take effect in 90 days.














    A12L61PJP/19930H1931B3801       - 17 -