1Amending Title 61 (Prisons and Parole) of the Pennsylvania
2Consolidated Statutes, establishing the Prison Industry
3Enhancement Authority; providing for employment of prisoners
4by private industry and for subcontracts with correctional
5agencies; establishing guidelines for prisoner compensation;
6and providing for location of private sector prison industry.

7The General Assembly of the Commonwealth of Pennsylvania
8hereby enacts as follows:

9Section 1. Title 61 of the Pennsylvania Consolidated
10Statutes is amended by adding a chapter to read:

11CHAPTER 19

12PRISON INDUSTRY ENHANCEMENT AUTHORITY

13Sec.

141901. Scope of chapter.

151902. Intent.

161903. Definitions.

171904. Prison Industry Enhancement Authority.

181905. Powers and duties of authority.

191906. Cooperation with private industry.

201907. Minimum requirements of private sector prison industry.

11908. Wages and deductions.

21909. Administrative support.

31910. Immunities not waived.

41911. Civil actions.

51912. Construction of chapter.

61913. Monetary limitations.

7§ 1901. Scope of chapter.

8This chapter relates to the Prison Industry Enhancement
9Authority.

10§ 1902. Intent.

11It is the intent of the General Assembly that joint ventures
12between correctional facilities and private industry be
13established so that prisoners incarcerated in correctional
14facilities be productively engaged. Private industry in this
15Commonwealth will become more competitive in the marketplace
16while not displacing job opportunities for civilian labor in the
17community. It is further the intent of the General Assembly to
18structure the use and availability of prisoner labor and
19regulate its use to assure that prisoner labor will not be used
20to replace work opportunities for unemployed or underemployed
21residents of this Commonwealth. The private sector prison
22industry will not result in bargaining agreements for civilian
23laborers. Prisoners who volunteer and are deemed eligible for
24these jobs will be better able to:

25(1) Develop positive work habits that will assist them
26in securing and holding gainful employment in the public and
27private sectors subsequent to their release from
28incarceration.

29(2) Pay a reasonable portion of the room and board in a
30correctional facility.

1(3) Accept responsibility for the consequences of their
2actions by compensating victims of crime through deductions
3from their earnings.

4(4) Provide financial assistance to their dependents,
5thus strengthening and promoting family ties while reducing
6the likelihood that their families may eventually have to
7rely upon public assistance.

8§ 1903. Definitions.

9The following words and phrases when used in this chapter
10shall have the meanings given to them in this section unless the
11context clearly indicates otherwise:

12"Authority." The Prison Industry Enhancement Authority.

13"Certification." The process where an applicant demonstrates 
14assurances of authority, compliance with mandatory program 
15criteria and describes key project elements as required by 
16Federal law.

17"Correctional facility." Any jail, prison or detention 
18facility operated by the Commonwealth or by a county or jointly 
19by more than one county and used for the detention and 
20confinement of persons convicted and under sentence for 
21violations of the criminal laws of this Commonwealth. For 
22purposes of this chapter, the term shall also include any 
23motivational boot camp as defined in section 3903 (relating to 
24definitions). The term does not include any correctional 
25facility used for the detention and confinement of juvenile 
26offenders.

27"Cost accounting center." A specific industry program
28operated under the private sector prison industry enhancement
29certification program.

30"County commissioners." Elected county commissioners or the 

1equivalent governing body of any county, regardless of form of 
2government.

3"Customer model." An arrangement under which:

4(1) the private business, private enterprise or
5nonprofit entity purchases all or a significant portion of
6the output of a prison-based business owned and operated by a
7government entity, political subdivision or an
8instrumentality thereof; and

9(2) the private sector partner assumes no major role in
10the industry operation, does not direct production and
11exercises no control over prisoner labor.

12"Director of correctional industries." An individual who has 
13authority to operate and manage the Prison Industry Enhancement 
14Certification Program under the direct supervision of the 
15Secretary of Corrections and the Prison Industry Enhancement 
16Authority.

17"Employer model." An arrangement under which a private
18business, private enterprise or nonprofit entity owns and
19operates the cost accounting center with limited State or local
20government involvement by controlling the hiring, firing,
21training, supervision and payment of the prisoner work force,
22and the Department of Corrections assumes no major role in the
23industry operation, does not direct production and exercises
24minimum control over prisoner labor performance.

25"Justice Assistance Act of 1984." The Justice Assistance Act
26of 1984 (Public Law 98-473, 98 Stat. 2077).

27"Municipality." A municipal corporation or quasi-municipal 
28corporation, including counties.

29"Office." The Office of Victims' Services within the 
30Department of Corrections.

1"Open market." An unrestricted stream of commerce within 
2this Commonwealth and outside the borders of this Commonwealth 
3in interstate commerce.

4"Prisoner." An individual who has been convicted of a crime 
5and is serving a sentence in a correctional facility.

6"Private business," "private enterprise" or "nonprofit 
7entity." An individual, firm, partnership, corporation or other 
8lawful commercial enterprise or nonprofit organization that, 
9under this chapter, operates a private sector prison industry 
10and employs State or county prisoners.

11"Private sector prison industry." A private business, 
12private enterprise or nonprofit entity that produces goods or 
13services employing prisoner labor in or on the property of a 
14State or county correctional facility.

15"Program." The Prison Industry Enhancement Certification 
16Program established under Federal law.

17"Superintendent." The person in primary charge of the 
18administration and managers of a State correctional facility.

19"Warden." The person in primary charge of the administration 
20and management of a county or multicounty correctional facility.

21§ 1904. Prison Industry Enhancement Authority.

22(a) Establishment.--There is established an authority to be
23known as the Prison Industry Enhancement Authority.

24(b) Composition.--The authority shall consist of the
25following members:

26(1) The secretary or a designee who shall serve as
27chairman.

28(2) The director of correctional industries.

29(3) One representative from organized labor appointed by
30the Governor from a list submitted by the Statewide labor

1organizations in this Commonwealth.

2(4) One county commissioner nominated by the County
3Commissioners Association of Pennsylvania and appointed by
4the Governor.

5(5) One warden appointed by the Governor.

6(6) One representative from the business community
7appointed by the Governor from a list submitted by the
8business community.

9(7) One superintendent appointed by the secretary.

10(c) Terms.--Terms for members shall be as follows:

11(1) Three years for the county commissioner.

12(2) Two years for the representative from the business
13community.

14(3) Two years for the warden and the superintendent.

15(4) Two years for the representative from organized
16labor.

17(5) The secretary and director shall serve continuously.

18(d) Reappointment.--A member of the authority may be
19eligible for reappointment. A member shall continue to serve
20after the expiration of the member's term until a successor is
21appointed.

22(e) Vacancies.--A vacancy shall be filled by the original
23appointing authority for the remainder of the expired term. A
24vacancy shall be filled within 90 days of the occurrence of the
25vacancy.

26(f) Meetings.--The authority shall meet biannually and upon
27the request of the chairman or three or more members. All
28meetings may or may not be open to the public at the discretion
29of the secretary or the authority.

30(g) Quorum.--For the transaction of general business of the

1authority, four members shall constitute a quorum. A majority
2vote of the members present will be necessary for a private
3sector prison industry application to be approved. Each approval
4of a private sector prison industry application shall be made by
5a vote at a duly constituted meeting of the authority.

6(h) Compensation.--Members shall receive no compensation for
7their services on the authority, but shall be reimbursed by the
8department from the department's manufacturing funds for
9reasonable and necessary expenses.

10(i) Administration of authority.--The department shall
11furnish administrative support to the authority. Legal counsel
12for the authority shall be furnished by the Office of General
13Counsel.

14§ 1905. Powers and duties of authority.

15The authority shall have the powers and duties to:

16(1) Authorize the department to apply to the United
17States Department of Justice, Bureau of Justice Assistance or
18any successors for certification, as an umbrella authority,
19to assist other units of government seeking to participate in
20the program.

21(2) Act as an intermediary between the department, and
22its designees, and the United States Department of Justice,
23Bureau of Justice Assistance or any successors in complying
24with the mandatory criteria and program requirements for
25private sector prison industries in this Commonwealth.

26(3) Adopt procedures for determining whether a
27prospective private sector prison industry proposed by the
28department or any county correctional agency complies with
29the requirements of the program and other State law not
30inconsistent with this chapter.

1(4) Approve or disapprove proposals submitted to the
2authority from the department, or its designees, for private
3sector prison industry for inclusion or continuation in the
4program.

5(5) Monitor the department and its designees to ensure
6continuing compliance with this chapter and Federal law and
7provide proper notification of violations and proposed
8actions taken to ensure compliance.

9(6) Designate which services to be performed or articles
10manufactured or assembled by prisoners are conforming to the
11program regulations and can be sold on the open market.

12§ 1906. Cooperation with private industry.

13(a) General rule.--Upon the approval of the authority, the
14department or a county correctional facility, with the approval
15of its governing board, may enter into contracts with a private
16business, private enterprise or nonprofit organization to permit
17the employment of prisoners to perform designated work. The
18department shall remain responsible for the custody of State
19prisoners who are working for a cost accounting center operated
20by the department. The county shall remain responsible for the
21custody of county prisoners who are working for a cost
22accounting center operated by the county. The contractual
23arrangement authorized by this chapter shall not create any
24third-party rights in any prisoner.

25(b) Status of prisoner.--No prisoner compensated for
26participation in the program shall be considered to be an
27employee of the Commonwealth or the county nor shall the
28prisoner be afforded the rights and privileges of Commonwealth
29or county employees.

30(c) Certain rights preserved.--Nothing contained in this 

1section shall be deemed to restore, in whole or in part, the 
2civil rights of participating prisoners, except that 
3participating prisoners shall be afforded the protection of the 
4Fair Labor Standards Act of 1938 (52 Stat. 1060, 29 U.S.C. § 201 
5et seq.), Title VII of the Civil Rights Act of 1964 (Public Law 
688-352, 78 Stat. 241), the Occupational Safety and Health Act of 
71970 (Public Law 91-596, 29 U.S.C. § 651 et seq.), the Age 
8Discrimination Act of 1975 (Public Law 94-135, 42 U.S.C. § 6101 
9et seq.), the Americans with Disabilities Act of 1990 (Public 
10Law 101-336, 104 Stat. 327), the act of June 2, 1915 (P.L.736, 
11No.338), known as the Workers' Compensation Act, the act of 
12October 27, 1955 (P.L.744, No.222), known as the Pennsylvania 
13Human Relations Act, the act of July 14, 1961 (P.L.637, No.329), 
14known as the Wage Payment and Collection Law, and the act of 
15January 17, 1968 (P.L.11, No.5), known as The Minimum Wage Act 
16of 1968, solely to the extent that they apply to the private 
17sector prison industry employment relationship.

18(d) Consent to deduction.--A prisoner may participate in the
19program established under this chapter only on a voluntary basis
20and must consent, in advance, to the specific deductions from
21gross wages, as set forth under section 1908 (relating to wages
22and deductions). A prisoner performing services for a cost
23accounting center shall indicate, in writing, that he or she:

24(1) agrees voluntarily to participate in the cost
25accounting center activities; and

26(2) agrees voluntarily, and in advance, to specific
27deductions made from gross wages, as well as all other
28financial arrangements made as to wages earned through
29participation in the cost accounting center's activities.

30§ 1907. Minimum requirements of private sector prison industry.

1(a) Requirements enumerated.--A private business, private
2enterprise or nonprofit organization may not enter into a
3contract under section 1906 (relating to cooperation with
4private industry) unless it demonstrates all of the following:

5(1) The private business, private enterprise or
6nonprofit organization, the department or the governing
7authority of the county correctional system, whichever is
8applicable, consulted with local union central bodies and
9with local businesses that may be affected by the private
10business, private enterprise or nonprofit organization
11participating in the program.

12(2) The private business, private enterprise or
13nonprofit organization has verified with the Department of
14Labor and Industry that its participation in the program will
15not:

16(i) demonstrably result in the displacement of
17employees in the surrounding community;

18(ii) be applied in skills, crafts or trades in which
19there is a surplus of available gainful labor in the
20locality; or

21(iii) impair existing contracts for goods and 
22services. A contract may not be executed by or with a 
23private sector prison industry employer that will permit 
24the employment of prisoners in the same job 
25classifications or similar work duties or assignments as 
26individuals who are on strike, as defined in the act of 
27June 1, 1937 (P.L.1168, No.294), known as the 
28Pennsylvania Labor Relations Act, or who are otherwise 
29involved in a labor dispute as that term is defined by 
30Federal or State law, including a lockout.

1(b) Priorities.--When reviewing a potential private sector
2prison industry, the authority shall consider the impact on the
3employment of persons in the private business sector of this
4Commonwealth and consider establishing joint ventures that will
5retain or reclaim jobs in this Commonwealth, support emerging
6Commonwealth industries or create jobs for a deficient labor
7market.

8§ 1908. Wages and deductions.

9(a) Wages.--All prisoners participating in a cost accounting
10center's activities shall be compensated at a rate that is not
11less than the wages paid for work of a similar nature in private
12industry in the locality in which the activity is performed, as
13determined after consultation with the Department of Labor and
14Industry. A prisoner may not receive compensation that is less
15than the minimum wage established by Federal or State law unless
16the lesser compensation is consistent with Federal and State
17law. Wages shall be paid no less frequently than biweekly. Any
18wages remaining after the deductions under subsection (b) shall
19be maintained by the appropriate correctional authority in a
20fund in the prisoner's name. The amount remaining shall be
21returned to the prisoner at the time of release. The
22correctional authority may permit the prisoner to draw a portion
23of the money for other purposes deemed to be appropriate by the
24correctional authority.

25(b) Deductions.--

26(1) A prisoner shall have deducted from any compensation
27received:

28(i) Federal, State and local taxes.

29(ii) Contributions to the Crime Victim's
30Compensation Fund or equivalent fund established by law

1to compensate victims of crime, which contributions shall
2not be less than 5% nor more than 20% of the prisoner's
3gross wages.

4(iii) A reasonable portion of the room and board and
5administrative costs for the prisoner in a correctional
6facility as determined by the department or the governing
7body of the county correctional agency.

8(iv) An allocation for support of the prisoner's
9immediate family under statute or court order or under
10any other financial obligation acknowledged in writing by
11the prisoner.

12(v) All deductions in their entirety shall not
13exceed 80% of a prisoner's gross wages. The prisoner
14employee shall be paid, credited with, or otherwise
15benefit from, the 20% gross remainder. The benefit may
16include directing the remaining 20% to workers' expense
17accounts, or to the settling of the workers' legal
18obligations, including the payment of fines and
19restitution.

20(2) No other deductions shall be permitted unless
21otherwise permitted pursuant to Federal or State law.
22Deductions shall not in the aggregate exceed 80% of gross
23wages. Each prisoner employed shall receive a written
24statement of the description and amount of each deduction.

25(c) Workers' compensation.--The provision of benefits and 
26compensation to prisoners for injuries sustained in the course 
27of employment provided for under this chapter shall be subject 
28to any limitations set forth under the act of June 2, 1915 
29(P.L.736, No.338), known as the Workers' Compensation Act.

30(d) Unemployment insurance.--No prisoner may qualify for

1unemployment insurance payments.

2§ 1909. Administrative support.

3The department shall provide the authority with reasonable
4administrative and clerical support services subject to the
5availability of funds.

6§ 1910. Immunities not waived.

7No provision of this chapter shall waive or impair any
8sovereign, government, qualified or other immunity from or
9defense against suit available to the Commonwealth and its
10departments, boards, officers, employees and agents or the
11political subdivisions of this Commonwealth and their agencies,
12officers and employees.

13§ 1911. Civil actions.

14No prisoner may bring a civil action before any court,
15independent commission or authority of this Commonwealth against
16the authority, the Commonwealth or its agencies, officers or
17employees or the political subdivisions of this Commonwealth and
18their agencies, officers and employees based upon a contractual
19arrangement authorized under this chapter.

20§ 1912. Construction of chapter.

21No provision of this chapter may be construed:

22(1) To establish a civil cause of action against the
23authority, the Commonwealth or its agencies, officers or
24employees or the political subdivisions of this Commonwealth
25and their agencies, officers and employees.

26(2) To establish an enforceable right in any person to
27obtain or retain employment in the private sector prison
28industry.

29(3) To require the department or any county to propose
30or permit a private sector prison industry within the

1correctional facility.

2(4) To affect or change the method or manner of prisoner
3work assignments within a correctional facility or the
4statutory authority to compel the labor on behalf of the
5Commonwealth or any political subdivision thereof.

6§ 1913. Monetary limitations.

7There shall be no monetary limitations on the amount of goods
8and services supplied to the open market unless otherwise stated
9by the authority.

10Section 2. All acts and parts of acts are repealed insofar
11as they are inconsistent with the addition of 61 Pa.C.S. Ch. 19.

12Section 3. This act shall take effect in 90 days.