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PRINTER'S NO. 40
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
59
Session of
2017
INTRODUCED BY GREENLEAF, ARGALL, WHITE AND RAFFERTY,
JANUARY 12, 2017
REFERRED TO JUDICIARY, JANUARY 12, 2017
AN ACT
Amending Title 61 (Prisons and Parole) of the Pennsylvania
Consolidated Statutes, establishing the Prison Industry
Enhancement Authority; providing for employment of prisoners
by private industry and for subcontracts with correctional
agencies; establishing guidelines for prisoner compensation;
and providing for location of private sector prison industry.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 61 of the Pennsylvania Consolidated
Statutes is amended by adding a chapter to read:
CHAPTER 19
PRISON INDUSTRY ENHANCEMENT AUTHORITY
Sec.
1901. Scope of chapter.
1902. Intent.
1903. Definitions.
1904. Prison Industry Enhancement Authority.
1905. Powers and duties of authority.
1906. Cooperation with private industry.
1907. Minimum requirements of private sector prison industry.
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1908. Wages and deductions.
1909. Administrative support.
1910. Immunities not waived.
1911. Civil actions.
1912. Construction of chapter.
1913. Monetary limitations.
§ 1901. Scope of chapter.
This chapter relates to the Prison Industry Enhancement
Authority.
§ 1902. Intent.
It is the intent of the General Assembly that joint ventures
between correctional facilities and private industry be
established so that prisoners incarcerated in correctional
facilities be productively engaged. Private industry in this
Commonwealth will become more competitive in the marketplace
while not displacing job opportunities for civilian labor in the
community. Nothing in this chapter shall be construed to
authorize the privatization of correctional facilities in this
Commonwealth. It is further the intent of the General Assembly
to structure the use and availability of prisoner labor and
regulate its use to assure that prisoner labor will not be used
to replace work opportunities for unemployed or underemployed
residents of this Commonwealth. The private sector prison
industry will not result in bargaining agreements for civilian
laborers. Prisoners who volunteer and are deemed eligible for
these jobs will be better able to:
(1) Develop positive work habits that will assist them
in securing and holding gainful employment in the public and
private sectors subsequent to their release from
incarceration.
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(2) Pay a reasonable portion of the room and board in a
correctional facility.
(3) Accept responsibility for the consequences of their
actions by compensating victims of crime through deductions
from their earnings.
(4) Provide financial assistance to their dependents,
thus strengthening and promoting family ties while reducing
the likelihood that their families may eventually have to
rely upon public assistance.
§ 1903. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Authority . " The Prison Industry Enhancement Authority.
" Certification. " The process where an applicant demonstrates
assurances of authority, compliance with mandatory program
criteria and describes key project elements as required by
Federal law.
" Correctional facility. " Any jail, prison or detention
facility operated by the Commonwealth or by a county or jointly
by more than one county and used for the detention and
confinement of persons convicted and under sentence for
violations of the criminal laws of this Commonwealth. For
purposes of this chapter, the term shall also include any
motivational boot camp as defined in section 3903 (relating to
definitions). The term does not include any correctional
facility used for the detention and confinement of juvenile
offenders.
"Cost accounting center." A specific industry program
operated under the private sector prison industry enhancement
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certification program.
" County commissioners. " Elected county commissioners or the
equivalent governing body of any county, regardless of form of
government.
"Customer model." An arrangement under which:
(1) the private business, private enterprise or
nonprofit entity purchases all or a significant portion of
the output of a prison-based business owned and operated by a
government entity, political subdivision or an
instrumentality thereof; and
(2) the private sector partner assumes no major role in
the industry operation, does not direct production and
exercises no control over prisoner labor.
" Director of correctional industries. " An individual who has
authority to operate and manage the Prison Industry Enhancement
Certification Program under the direct supervision of the
Secretary of Corrections and the Prison Industry Enhancement
Authority.
"Employer model." An arrangement under which a private
business, private enterprise or nonprofit entity owns and
operates the cost accounting center with limited State or local
government involvement by controlling the hiring, firing,
training, supervision and payment of the prisoner work force,
and the Department of Corrections assumes no major role in the
industry operation, does not direct production and exercises
minimum control over prisoner labor performance.
"Justice Assistance Act of 1984." The Justice Assistance Act
of 1984 (Public Law 98-473, 98 Stat. 2077).
" Municipality. " A municipal corporation or quasi-municipal
corporation, including counties.
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" Office. " The Office of Victims' Services within the
Department of Corrections.
" Open market. " An unrestricted stream of commerce within
this Commonwealth and outside the borders of this Commonwealth
in interstate commerce.
" Prisoner. " An individual who has been convicted of a crime
and is serving a sentence in a correctional facility.
" Private business, " " private enterprise " or " nonprofit
entity. " An individual, firm, partnership, corporation or other
lawful commercial enterprise or nonprofit organization that,
under this chapter, operates a private sector prison industry
and employs State or county prisoners.
" Private sector prison industry. " A private business,
private enterprise or nonprofit entity that produces goods or
services employing prisoner labor in or on the property of a
State or county correctional facility.
" Program. " The Prison Industry Enhancement Certification
Program established under Federal law.
" Superintendent. " The person in primary charge of the
administration and managers of a State correctional facility.
" Warden. " The person in primary charge of the administration
and management of a county or multicounty correctional facility.
§ 1904. Prison Industry Enhancement Authority.
(a) Establishment.--There is established an authority to be
known as the Prison Industry Enhancement Authority.
(b) Composition.--The authority shall consist of the
following members:
(1) The secretary or a designee who shall serve as
chairman.
(2) The director of correctional industries.
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(3) Two representatives from organized labor appointed
by the Governor from a list submitted by the Statewide labor
organizations in this Commonwealth.
(4) One county commissioner nominated by the County
Commissioners Association of Pennsylvania and appointed by
the Governor.
(5) One warden appointed by the Governor.
(6) One representative from the business community
appointed by the Governor from a list submitted by the
business community.
(7) One superintendent appointed by the secretary.
(8) One representative from the Office of Victim
Advocate.
(c) Terms.--Terms for members shall be as follows:
(1) Three years for the county commissioner.
(2) Two years for the representative from the business
community.
(3) Two years for the warden and the superintendent .
(4) Two years for the representatives from organized
labor.
(5) The secretary, the director of correctional
industries and the representative from the Office of Victim
Advocate shall serve continuously.
(d) Reappointment.--A member of the authority may be
eligible for reappointment. A member shall continue to serve
after the expiration of the member's term until a successor is
appointed.
(e) Vacancies.--A vacancy shall be filled by the original
appointing authority for the remainder of the expired term. A
vacancy shall be filled within 90 days of the occurrence of the
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vacancy.
(f) Meetings.--The authority shall meet biannually and upon
the request of the chairman or three or more members. All
meetings may or may not be open to the public at the discretion
of the secretary or the authority.
(g) Quorum.--For the transaction of general business of the
authority, four members shall constitute a quorum. A majority
vote of the members present will be necessary for a private
sector prison industry application to be approved. Each approval
of a private sector prison industry application shall be made by
a vote at a duly constituted meeting of the authority.
(h) Compensation.--Notwithstanding any other provision of
law, members shall receive no compensation for their services on
the authority, but shall be reimbursed by the department from
the department's Manufacturing Fund under section 3122 (relating
to Manufacturing Fund) for reasonable and necessary expenses.
(i) Administration of authority.--The department shall
furnish administrative support to the authority. Legal counsel
for the authority shall be furnished by the Office of General
Counsel.
§ 1905. Powers and duties of authority.
The authority shall have the powers and duties to:
(1) Authorize the department to apply to the United
States Department of Justice, Bureau of Justice Assistance or
any successors for certification, as an umbrella authority,
to assist other units of government seeking to participate in
the program.
(2) Act as an intermediary between the department, and
its designees, and the United States Department of Justice,
Bureau of Justice Assistance or any successors in complying
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with the mandatory criteria and program requirements for
private sector prison industries in this Commonwealth.
(3) Adopt procedures for determining whether a
prospective private sector prison industry proposed by the
department or any county correctional agency complies with
the requirements of the program and other State law not
inconsistent with this chapter.
(4) Approve or disapprove proposals submitted to the
authority from the department, or its designees, for private
sector prison industry for inclusion or continuation in the
program.
(5) Monitor the department and its designees to ensure
continuing compliance with this chapter and Federal law and
provide proper notification of violations and proposed
actions taken to ensure compliance.
(6) Designate which services to be performed or articles
manufactured or assembled by prisoners are conforming to the
program regulations and can be sold on the open market.
§ 1906. Cooperation with private industry.
(a) General rule.--Upon the approval of the authority, the
department or a county correctional facility, with the approval
of its governing board, may enter into contracts with a private
business, private enterprise or nonprofit organization to permit
the employment of prisoners to perform designated work. The
department shall remain responsible for the custody of State
prisoners who are working for a cost accounting center operated
by the department. The county shall remain responsible for the
custody of county prisoners who are working for a cost
accounting center operated by the county. The contractual
arrangement authorized by this chapter shall not create any
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third-party rights in any prisoner.
(b) Status of prisoner.--No prisoner compensated for
participation in the program shall be considered to be an
employee of the Commonwealth or the county nor shall the
prisoner be afforded the rights and privileges of Commonwealth
or county employees.
(c) Certain rights preserved.--Nothing contained in this
section shall be deemed to restore, in whole or in part, the
civil rights of participating prisoners, except that
participating prisoners shall be afforded the protection of the
Fair Labor Standards Act of 1938 ( 52 Stat. 1060, 29 U.S.C. § 201
et seq.), Title VII of the Civil Rights Act of 1964 (Public Law
88-352, 78 Stat. 241), the Occupational Safety and Health Act of
1970 (Public Law 91-596, 29 U.S.C. § 651 et seq.), the Age
Discrimination Act of 1975 (Public Law 94-135, 42 U.S.C. § 6101
et seq.), the Americans with Disabilities Act of 1990 (Public
Law 101-336, 104 Stat. 327), the act of June 2, 1915 (P.L.736,
No.338) , known as the Workers' Compensation Act, the act of
October 27, 1955 (P.L.744, No.222) , known as the Pennsylvania
Human Relations Act, the act of July 14, 1961 (P.L.637, No.329) ,
known as the Wage Payment and Collection Law, and the act of
January 17, 1968 (P.L.11, No.5) , known as The Minimum Wage Act
of 1968, solely to the extent that they apply to the private
sector prison industry employment relationship.
(d) Consent to deduction.--A prisoner may participate in the
program established under this chapter only on a voluntary basis
and must consent, in advance, to the specific deductions from
gross wages, as set forth under section 1908 (relating to wages
and deductions). A prisoner performing services for a cost
accounting center shall indicate, in writing, that he or she:
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(1) agrees voluntarily to participate in the cost
accounting center activities; and
(2) agrees voluntarily, and in advance, to specific
deductions made from gross wages, as well as all other
financial arrangements made as to wages earned through
participation in the cost accounting center's activities.
§ 1907. Minimum requirements of private sector prison industry.
(a) Requirements enumerated.--A private business, private
enterprise or nonprofit organization may not enter into a
contract under section 1906 (relating to cooperation with
private industry) unless it demonstrates all of the following:
(1) The private business, private enterprise or
nonprofit organization, the department or the governing
authority of the county correctional system, whichever is
applicable, consulted with local union central bodies and
with local businesses that may be affected by the private
business, private enterprise or nonprofit organization
participating in the program.
(2) The private business, private enterprise or
nonprofit organization has verified with the Department of
Labor and Industry that its participation in the program will
not:
(i) demonstrably result in the displacement of
employees in the surrounding community;
(ii) be applied in skills, crafts or trades in which
there is a surplus of available gainful labor in the
locality; or
(iii) impair existing contracts for goods and
services. A contract may not be executed by or with a
private sector prison industry employer that will permit
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the employment of prisoners in the same job
classifications or similar work duties or assignments as
individuals who are on strike as a result of a labor
dispute as defined in the act of June 1, 1937 (P.L.1168,
No.294), known as the Pennsylvania Labor Relations Act,
or who are otherwise involved in a labor dispute as that
term is defined by Federal law, including a lockout.
(b) Priorities.--When reviewing a potential private sector
prison industry, the authority shall consider the impact on the
employment of persons in the private business sector of this
Commonwealth and consider establishing joint ventures that will
retain or reclaim jobs in this Commonwealth, support emerging
Commonwealth industries or create jobs for a deficient labor
market.
§ 1908. Wages and deductions.
(a) Wages.--All prisoners participating in a cost accounting
center's activities shall be compensated at a rate that is not
less than the wages paid for work of a similar nature in private
industry in the locality in which the activity is performed, as
determined after consultation with the Department of Labor and
Industry. A prisoner may not receive compensation that is less
than the minimum wage established by Federal or State law unless
the lesser compensation is consistent with Federal and State
law. Wages shall be paid no less frequently than biweekly. Any
wages remaining after the deductions under subsection (b) shall
be maintained by the appropriate correctional authority in a
fund in the prisoner's name. The amount remaining shall be
returned to the prisoner at the time of release. The
correctional authority may permit the prisoner to draw a portion
of the money for other purposes deemed to be appropriate by the
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correctional authority.
(b) Deductions.--
(1) A prisoner shall have deducted from any compensation
received:
(i) Federal, State and local taxes.
(ii) Contributions to the Crime Victim's
Compensation Fund or equivalent fund established by law
to compensate victims of crime, which contributions shall
not be less than 5% nor more than 20% of the prisoner's
gross wages.
(iii) A reasonable portion of room and board and
administrative costs for the prisoner in a correctional
facility as determined by the department or the governing
body of the county correctional agency.
(iv) An allocation for support of the prisoner's
immediate family under statute or court order or under
any other financial obligation acknowledged in writing by
the prisoner.
(v) All deductions in their entirety shall not
exceed 80% of a prisoner's gross wages. The prisoner
employee shall be paid, credited with, or otherwise
benefit from, the 20% gross remainder. The benefit may
include directing the remaining 20% to workers' expense
accounts, or to the settling of the workers' legal
obligations, including the payment of fines and
restitution.
(2) No other deductions shall be permitted unless
otherwise permitted pursuant to Federal or State law.
Deductions shall not in the aggregate exceed 80% of gross
wages. Each prisoner employed shall receive a written
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statement of the description and amount of each deduction.
(c) Workers' compensation.--The provision of benefits and
compensation to prisoners for injuries sustained in the course
of employment provided for under this chapter shall be subject
to any limitations set forth under the act of June 2, 1915
(P.L.736, No.338) , known as the Workers' Compensation Act.
(d) Unemployment insurance.--No prisoner may qualify for
unemployment insurance payments.
§ 1909. Administrative support.
The department shall provide the authority with reasonable
administrative and clerical support services subject to the
availability of funds.
§ 1910. Immunities not waived.
No provision of this chapter shall waive or impair any
sovereign, government, qualified or other immunity from or
defense against suit available to the Commonwealth and its
departments, boards, officers, employees and agents or the
political subdivisions of this Commonwealth and their agencies,
officers and employees.
§ 1911. Civil actions.
No prisoner may bring a civil action before any court,
independent commission or authority of this Commonwealth against
the authority, the Commonwealth or its agencies, officers or
employees or the political subdivisions of this Commonwealth and
their agencies, officers and employees based upon a contractual
arrangement authorized under this chapter.
§ 1912. Construction of chapter.
No provision of this chapter may be construed:
(1) To establish a civil cause of action against the
authority, the Commonwealth or its agencies, officers or
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employees or the political subdivisions of this Commonwealth
and their agencies, officers and employees.
(2) To establish an enforceable right in any person to
obtain or retain employment in the private sector prison
industry.
(3) To require the department or any county to propose
or permit a private sector prison industry within the
correctional facility.
(4) To affect or change the method or manner of prisoner
work assignments within a correctional facility or the
statutory authority to compel the labor on behalf of the
Commonwealth or any political subdivision thereof.
§ 1913. Monetary limitations.
There shall be no monetary limitations on the amount of goods
and services supplied to the open market unless otherwise stated
by the authority.
Section 2. All acts and parts of acts are repealed insofar
as they are inconsistent with the addition of 61 Pa.C.S. Ch. 19.
Section 3. This act shall take effect in 90 days.
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