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                                                      PRINTER'S NO. 3688

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2498 Session of 2008


        INTRODUCED BY McGEEHAN, BISHOP, CALTAGIRONE, CRUZ, FRANKEL,
           GEORGE, GIBBONS, HALUSKA, JOSEPHS, MAHONEY, McILHATTAN, MURT,
           PASHINSKI, PHILLIPS, RUBLEY, SHIMKUS, SIPTROTH, K. SMITH,
           SOLOBAY, WALKO, WATERS AND YOUNGBLOOD, MAY 2, 2008

        REFERRED TO COMMITTEE ON JUDICIARY, MAY 2, 2008

                                     AN ACT

     1  Establishing the Prison Industry Enhancement Certification
     2     Program and the Prison Industry Enhancement Certification
     3     Board; providing for employment of inmates by private
     4     industry and for subcontracts with correctional agencies;
     5     establishing guidelines for inmate compensation; and
     6     providing for location of private sector prison industry.

     7                         TABLE OF CONTENTS
     8  Section 1.  Short title.
     9  Section 2.  Intent.
    10  Section 3.  Definitions.
    11  Section 4.  Prison Industry Enhancement Certification Board.
    12  Section 5.  Powers and duties of board.
    13  Section 6.  Employment of inmates by private industry.
    14  Section 7.  Minimum requirements of private sector prison
    15                 industry.
    16  Section 8.  Inmate wages and deductions.
    17  Section 9.  Administrative support.
    18  Section 10.  Immunities not waived.
    19  Section 11.  Inmate civil actions.

     1  Section 12.  Construction of act.
     2  Section 13.  Monetary limitations.
     3  Section 14.  Repeals.
     4  Section 15.  Effective date.
     5     The General Assembly of the Commonwealth of Pennsylvania
     6  hereby enacts as follows:
     7  Section 1.  Short title.
     8     This act shall be known and may be cited as the Prison
     9  Industry Enhancement Certification Program Act.
    10  Section 2.  Intent.
    11     It is the intent of the General Assembly that joint ventures
    12  between correctional facilities and private industry be
    13  established so that inmates incarcerated in correctional
    14  facilities be productively engaged. Private industry in this
    15  Commonwealth will become more competitive in the marketplace
    16  while not displacing job opportunities for civilian labor in the
    17  community. It is further the intent of the General Assembly to
    18  structure the use and availability of inmate labor and regulate
    19  its use to assure that inmate labor not be used to replace work
    20  opportunities for unemployed or underemployed residents of this
    21  Commonwealth. The private sector prison industry will not result
    22  in bargaining agreements for civilian laborers. Inmates who
    23  volunteer and are deemed eligible for these jobs will be better
    24  able to:
    25         (1)  Develop positive work habits that will assist them
    26     in securing and holding gainful employment in the public and
    27     private sectors subsequent to their release from
    28     incarceration.
    29         (2)  Pay a reasonable portion of the room and board in a
    30     correctional facility.
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     1         (3)  Accept responsibility for the consequences of their
     2     actions by compensating victims of crime through deductions
     3     from their earnings.
     4         (4)  Provide financial assistance to their dependents,
     5     thus strengthening and promoting family ties while reducing
     6     the likelihood that their families may eventually have to
     7     rely upon public assistance.
     8  Section 3.  Definitions.
     9     The following words and phrases when used in this act shall
    10  have the meanings given to them in this section unless the
    11  context clearly indicates otherwise:
    12     "Board."  The Prison Industry Enhancement Certification Board
    13  established under section 4.
    14     "Certification."  Certification of the Commonwealth or a unit
    15  of local government under the Justice Assistance Act of 1984
    16  (Public Law 98-473, 98 Stat. 2077).
    17     "Correctional facility" or "correctional institution."  Any
    18  jail, prison or detention facility operated by the Commonwealth
    19  or by a county or jointly by more than one county and used for
    20  the detention and confinement of persons convicted and under
    21  sentence or violations of the criminal laws of this
    22  Commonwealth. For purposes of this act, the term shall also
    23  include any motivational boot camp as defined in section 3 of
    24  the act of December 19, 1990 (P.L.1391, No.215), known as the
    25  Motivational Boot Camp Act. The term does not include any
    26  correctional facility used for the detention and confinement of
    27  juvenile offenders.
    28     "Counsel."  A licensed attorney within the Department of
    29  Corrections.
    30     "County commissioners."  Elected county commissioners or the
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     1  equivalent governing body of any county, regardless of form of
     2  government.
     3     "Department."  The Department of Corrections of the
     4  Commonwealth.
     5     "Director of correctional industries."  An individual with
     6  the express and assigned duties to operate and manage the Prison
     7  Industry Enhancement Certification Program under the direct
     8  supervision of the Secretary of Corrections and the Prison
     9  Industry Enhancement Certification Board.
    10     "Inmate."  An individual who has been convicted of an
    11  indictable offense and is serving a sentence in a correctional
    12  facility or correctional institution.
    13     "Justice Assistance Act of 1984."  The Justice Assistance Act
    14  of 1984 (Public Law 98-473, 98 Stat. 2077).
    15     "Municipality."  A municipal corporation or quasi-municipal
    16  corporation, including counties.
    17     "Office."  The Office of Victims' Services.
    18     "Open market."  An unrestricted stream of commerce within
    19  this Commonwealth and outside the borders of this Commonwealth
    20  in interstate commerce.
    21     "Private business," "private enterprise" or "nonprofit
    22  entity."  An individual, firm, partnership, corporation or other
    23  lawful commercial enterprise or nonprofit organization that,
    24  under this act, operates a private sector prison industry and
    25  employs State or county inmates.
    26     "Private sector prison industry."  A private business,
    27  private enterprise or nonprofit entity that produces goods or
    28  services employing inmate labor in or on the property of a State
    29  or county correctional facility.
    30     "Program."  The Prison Industry Enhancement Certification
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     1  Program established under the Justice Assistance Act of 1984
     2  (Public Law 98-473, 98 Stat. 2077).
     3     "Secretary."  The Secretary of Corrections of the
     4  Commonwealth.
     5     "Superintendent."  The person in primary charge of a State
     6  correctional facility.
     7     "Warden."  The person in primary charge of the administration
     8  and management of a county or multicounty correctional
     9  institution.
    10  Section 4.  Prison Industry Enhancement Certification Board.
    11     (a)  Establishment.--There is hereby established a board to
    12  be known as the Prison Industry Enhancement Certification Board.
    13     (b)  Composition.--The board shall consist of seven members
    14  as follows:
    15         (1)  The secretary or a designee who shall serve as
    16     chairman.
    17         (2)  The director of correctional industries.
    18         (3)  One representative from organized labor appointed by
    19     the Governor from a list submitted by the Statewide labor
    20     organizations in this Commonwealth.
    21         (4)  One county commissioner nominated by the County
    22     Commissioners Association of Pennsylvania and appointed by
    23     the Governor.
    24         (5)  One warden appointed by the Governor.
    25         (6)  One representative from the business community
    26     appointed by the Governor from a list submitted by the
    27     business community.
    28         (7)  One department counsel appointed by the secretary.
    29     (c)  Terms.--Terms for members shall be as follows:
    30         (1)  Three years for the county commissioner.
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     1         (2)  Two years for the representative from the business
     2     community.
     3         (3)  Two years for the warden.
     4         (4)  Two years for the representative from organized
     5     labor.
     6         (5)  The secretary, director and counsel shall serve
     7     continuously.
     8     (d)  Reappointment.--A member of the board may be eligible
     9  for reappointment. A member shall continue to serve after the
    10  expiration of the member's term until a successor is appointed.
    11     (e)  Vacancies.--A vacancy shall be filled by the original
    12  appointing authority for the remainder of the expired term. A
    13  vacancy shall be filled within 90 days of the occurrence of the
    14  vacancy.
    15     (f)  Meetings.--The board shall meet biannually and upon the
    16  request of the chairman or three or more members. All meetings
    17  may or may not be open to the public at the discretion of the
    18  secretary or the board.
    19     (g)  Quorum.--For the transaction of general business of the
    20  board, four members shall constitute a quorum. A majority vote
    21  of the members present will be necessary for a private sector
    22  prison industry application to be approved. Each approval of a
    23  private sector prison industry application shall be made by a
    24  vote at a duly constituted meeting of the board.
    25     (h)  Compensation.--Members shall receive no compensation for
    26  their services on the board, but shall be reimbursed by the
    27  department for all reasonable and necessary expenses in
    28  accordance with the rules of the board.
    29  Section 5.  Powers and duties of board.
    30     The board shall have the powers and duties to:
    20080H2498B3688                  - 6 -     

     1         (1)  Apply to the United States Department of Justice for
     2     certification of the Commonwealth or assist a unit of local
     3     government in applying for certification.
     4         (2)  Act as an intermediary between a correctional agency
     5     in this Commonwealth and the United States Department of
     6     Justice in complying with the mandatory criteria for the
     7     program of private sector prison industries in this
     8     Commonwealth.
     9         (3)  Establish procedures for determining whether a
    10     prospective private sector prison industry proposed by the
    11     department or any county correctional agency complies with
    12     the requirements of the program and other State law not
    13     inconsistent with this act.
    14         (4)  Approve or disapprove a prospective private sector
    15     prison industry for inclusion or continuation in the program.
    16         (5)  Monitor a private sector prison industry to ensure
    17     continuing compliance with this act and the Justice
    18     Assistance Act of 1984 and forward any complaints or notices
    19     of violations to the appropriate enforcement authority.
    20         (6)  Designate which services to be performed or articles
    21     manufactured or assembled by inmates are conforming to the
    22     program regulations and can be sold on the open market.
    23  Section 6.  Employment of inmates by private industry.
    24     (a)  Contract and supervision.--Upon the approval of the
    25  board, the department or a county correctional facility, with
    26  the approval of its governing board, may enter into contracts
    27  with a private business, private enterprise or nonprofit
    28  organization to permit the employment of inmates to perform
    29  designated work. The department shall remain responsible for the
    30  custody of a department inmate employed in a private sector
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     1  prison industry, however, all supervision of the inmate employee
     2  that is related to the inmate's employment is the sole
     3  responsibility of the private sector prison industry. The county
     4  facility shall remain responsible for the custody of a county
     5  inmate employed in a private sector prison industry, however,
     6  all supervision of the inmate employee that is related to that
     7  inmate's employment is the sole responsibility of the private
     8  sector prison industry. The contractual arrangement authorized
     9  by this act shall not create any third-party rights in any
    10  inmate.
    11     (b)  Status of inmate.--No inmate compensated for
    12  participation in the program shall be considered to be an
    13  employee of the Commonwealth or the county nor shall the inmate
    14  be afforded the rights and privileges of Commonwealth or county
    15  employees.
    16     (c)  Certain rights preserved.--Nothing contained in this
    17  section shall be deemed to restore, in whole or in part, the
    18  civil rights of participating inmates, however, participating
    19  inmates shall be afforded the protection of the Fair Labor
    20  Standards Act of 1938 (52 Stat. 1060, 29 U.S.C. § 201 et seq.),
    21  Title VII of the Civil Rights Act of 1964 (Public Law 88-352, 78
    22  Stat. 241), the Occupational Safety and Health Act of 1970
    23  (Public Law 91-596, 29 U.S.C. § 651 et seq.), the Age
    24  Discrimination Act of 1975 (Public Law 94-135, 42 U.S.C. § 6101
    25  et seq.), the Americans with Disabilities Act of 1990 (Public
    26  Law 101-336, 104 Stat. 327), the act of June 2, 1915 (P.L.736,
    27  No.338), known as the Workers' Compensation Act, the act of
    28  October 27, 1955 (P.L.744, No.222), known as the Pennsylvania
    29  Human Relations Act, the act of July 14, 1961 (P.L.637, No.329),
    30  known as the Wage Payment and Collection Law, and the act of
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     1  January 17, 1968 (P.L.11, No.5), known as The Minimum Wage Act
     2  of 1968, solely to the extent that they apply to the private
     3  sector prison industry employment relationship.
     4     (d)  Consent to deduction.--An inmate may participate in the
     5  program established under this act only on a voluntary basis and
     6  must consent, in advance, to the specific deductions from gross
     7  wages, as set forth under section 8.
     8  Section 7.  Minimum requirements of private sector prison
     9                 industry.
    10     (a)  Requirements enumerated.--A private business, private
    11  enterprise or nonprofit organization may not enter into a
    12  contract under section 6 unless it demonstrates all of the
    13  following:
    14         (1)  The private business, private enterprise or
    15     nonprofit organization, the department or the governing
    16     authority of the county correctional system, whichever is
    17     applicable, consulted with local union central bodies and
    18     with local businesses that may be affected by the private
    19     business, private enterprise or nonprofit organization
    20     participating in the program.
    21         (2)  The private business, private enterprise or
    22     nonprofit organization has verified with the Department of
    23     Labor and Industry that its participation in the program will
    24     not:
    25             (i)  demonstrably result in the displacement of
    26         employees in the surrounding community;
    27             (ii)  be applied in skills, crafts or trades in which
    28         there is a surplus of available gainful labor in the
    29         locality; or
    30             (iii)  impair existing contracts for goods and
    20080H2498B3688                  - 9 -     

     1         services. Further, a contract shall not be executed by or
     2         with a private sector prison industry employer that will
     3         permit the employment of inmates in the same job
     4         classifications or similar work duties or assignments as
     5         individuals who are on strike, as defined in the act of
     6         June 1, 1937 (P.L.1168, No.294), known as the
     7         Pennsylvania Labor Relations Act, or who are otherwise
     8         involved in a labor dispute as that term is defined by
     9         Federal or State law, including, but not limited to, a
    10         lockout.
    11         (3)  All inmate employment shall be voluntary.
    12     (b)  Priorities.--When reviewing a potential private sector
    13  prison industry, the board shall consider the impact on the
    14  employment of persons in the private business sector of this
    15  Commonwealth and consider establishing joint ventures that will
    16  retain or reclaim jobs in this Commonwealth, support emerging
    17  Commonwealth industries or create jobs for a deficient labor
    18  market.
    19  Section 8.  Inmate wages and deductions.
    20     (a)  Wages.--All inmates shall be compensated by the private
    21  business, private enterprise or nonprofit organization at a rate
    22  that is comparable to wages paid for work of a similar nature in
    23  private industry in the locality in which the project is
    24  located, as determined after consultation with the Department of
    25  Labor and Industry. An inmate may not receive compensation that
    26  is less than the minimum wage established by Federal or State
    27  law unless the lesser compensation is consistent with Federal
    28  and State law. Wages shall be paid no less frequently than
    29  biweekly. Any wages remaining after the deductions under
    30  subsection (b) shall be maintained by the appropriate
    20080H2498B3688                 - 10 -     

     1  correctional authority in a fund in the inmate's name. The
     2  amount remaining shall be returned to the inmate at the time of
     3  release. The correctional authority may, however, permit the
     4  inmate to draw a portion of the money for other purposes deemed
     5  to be appropriate by the correctional authority.
     6     (b)  Deductions.--An inmate shall have deducted from any
     7  compensation received:
     8         (1)  Federal, State and local taxes.
     9         (2)  Any court-ordered financial obligation, including
    10     victim restitution, fines, costs or other amounts in
    11     accordance with 42 Pa.C.S. § 9728 (relating to collection of
    12     restitution, reparation, fees, costs, fines and penalties).
    13     This amount may not be less than 5% nor more than 20% of
    14     gross wages and shall be paid to the office. All funds
    15     collected by the office shall be used to compensate crime
    16     victims in the manner provided under 42 Pa.C.S. § 9728.
    17         (3)  A reasonable portion of the room and board and
    18     administrative costs for the inmate in a correctional
    19     facility as determined by the department or the governing
    20     body of the county correctional agency.
    21         (4)  An allocation for support of the inmate's immediate
    22     family under statute or court order or under any other
    23     financial obligation acknowledged in writing by the inmate.
    24  No other deductions shall be permitted unless otherwise
    25  permitted pursuant to Federal or State law. Deductions shall not
    26  in the aggregate exceed 80% of gross wages. Each inmate employed
    27  shall receive a written statement of the description and amount
    28  of each deduction.
    29     (c)  Workers' compensation.--The provision of benefits and
    30  compensation to inmates for injuries sustained in the course of
    20080H2498B3688                 - 11 -     

     1  employment provided for under this act shall be subject to any
     2  limitations set forth under the act of June 2, 1915 (P.L.736,
     3  No.338), known as the Workers' Compensation Act.
     4     (d)  Unemployment insurance.--No inmate may qualify for
     5  unemployment insurance payments.
     6  Section 9.  Administrative support.
     7     The department shall provide the board with reasonable
     8  administrative and clerical support services subject to the
     9  availability of funds.
    10  Section 10.  Immunities not waived.
    11     No provision of this act waives or impairs any sovereign,
    12  government, qualified or other immunity from or defense against
    13  suit available to the Commonwealth and its departments, boards,
    14  officers, employees and agents or the political subdivisions of
    15  this Commonwealth and their agencies, officers and employees.
    16  Section 11.  Inmate civil actions.
    17     No inmate may bring a civil action before any court,
    18  independent commission or board of this Commonwealth against the
    19  board, the Commonwealth or its agencies, officers or employees
    20  or the political subdivisions of this Commonwealth and their
    21  agencies, officers and employees based upon a contractual
    22  arrangement authorized under this act.
    23  Section 12.  Construction of act.
    24     No provision of this act may be construed as creating a civil
    25  cause of action against the board, the Commonwealth or its
    26  agencies, officers or employees or the political subdivisions of
    27  this Commonwealth and their agencies, officers and employees.
    28  Nothing in this act may create an enforceable right in any
    29  person to obtain or retain employment in the private sector
    30  prison industry. Nothing in this act shall require the
    20080H2498B3688                 - 12 -     

     1  department or any county to propose or permit a private sector
     2  prison industry within the correctional facility.
     3  Section 13.  Monetary limitations.
     4     There shall be no monetary limitations on the amount of goods
     5  and services supplied to the open market unless otherwise stated
     6  by the board.
     7  Section 14.  Repeals.
     8     All acts and parts of acts are repealed insofar as they are
     9  inconsistent with this act. This act shall not, however, affect
    10  or change the method or manner of inmate work assignments within
    11  a correctional facility or correctional institution or the
    12  statutory authority to compel the labor on behalf of the
    13  Commonwealth or any political subdivision thereof.
    14  Section 15.  Effective date.
    15     This act shall take effect in 90 days.











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