HOUSE BILL REPORT

HB 1024

BYRepresentatives Nelson, Brekke, Niemi, Locke, H. Sommers and Winsley

Reorganizing the institutional industries program.

House Committe on Ways & Means/Appropriations

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (21)

      Signed by Representatives Locke, Chair; Allen, Belcher, Braddock, Brekke, Bristow, Ebersole, Fuhrman, Grant, Grimm, Hine, Holland, McMullen, Nealey, Niemi, Peery, Sayan, Silver, H. Sommers, Sprenkle and B. Williams.

House Staff:Jim Lux (786-7152)

AS REPORTED BY COMMITTEE ON WAYS & MEANS/APPROPRIATIONS

MARCH 5, 1987

BACKGROUND:

The Corrections Reform Act of 1981 separated adult corrections programs from the umbrella agency, the Department of Social and Health Services (DSHS) and established an independent Department of Corrections (DOC).  The Act organizes the DOC into three broadly defined divisions and permits the Secretary to establish more divisions if appropriate.  The three basic divisions are (1) institutional industries, (2) prisons and other custodial institutions, and (3) probation, parole, community service, restitution and other nonincarcerative sanctions.  The departments' current organizational structure is comprised of four operating divisions (1) Division of Prisons, (2) Division of Community Services, (3) Division of Institutional Industries, and (4) Division of Administration.  The Division of Prisons and the Division of Institutional Industries both have separate directors and separate reporting structures but serve the same offenders on the grounds of the 13 corrections institutions.

In determining guidelines for work programs and types of industries programs, the legislature identified five classes of work programs.  The five classes are Class I:  Free Venture Industries which are operated and managed by profit or nonprofit organizations in concert with the department, providing work experiences in industries whose products are sold on the open market; Class II:  Tax Reduction Industries which are state-owned and operated enterprises designed to reduce costs for goods and services for tax supported and nonprofit organizations; Class III:  Institutional Support Industries which are activities that support the operation and maintenance of the 13 correctional facilities; Class IV:  Community Work Industries which are operated by the department that provide services in the inmates community to public agencies, to persons that are poor or infirm and to nonprofit organizations and Class V:  Community Service Programs which are programs supervised by the department that enable an offender to work off all or part of a community service order required by the sentencing court.

Approximately 82 percent of the inmates participating in the five classes of industries programs are involved with Class III industries that support the operations and maintenance of the 13 corrections facilities.  The remaining 18 percent participate in the other four industries classes.

SUMMARY:

SUBSTITUTE BILL:  This bill enables the Department of Corrections to re-align the Division of Institutional Industries within the Division of Prisons.  All references in statute to the Division of Institutional Industries as a discrete operating division are removed.

There are two problems this legislation is designed to address. The first is reduced program efficiency and effectiveness.  Under the current organizational structure, the Division of Prisons has jurisdiction over approximately 82 percent of the inmates involved in work programs while the Division of Institutional Industries has jurisdiction over the remainder.  The two organizations are vertical in nature, each with different perspectives and responsibilities concerning inmate work programs.  Lack of coordination between divisions has occurred resulting in reduced operating efficiencies and program effectiveness.  A perception exists that the two divisions are not always united in their approach to managing inmates and work opportunities.  The second problem this legislation addresses is one of reducing the dependence on general fund state subsidies supporting the Division of Institutional Industries.  General und state appropriations are provided to purchase industries equipment and to subsidize staffing and support costs when necessary.  In tight fiscal times, it becomes necessary to look for economies to reduce the dependence on general fund revenues where possible.  It is anticipated that through consolidation of the two divisions that savings could accrue to the state by eliminating selected administrative positions and absorbing as much responsibility into the Division of Prisons as possible.

In conclusion, this legislation provides the Department of Corrections with the ability to address an organizational structure problem.  The proposed remedy should result in increased program efficiency and effectiveness.  Secondarily, scarce state resources could be saved.  This legislation is designed to create one philosophy and direction with unified authority at the top to carry out inmate work programs.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  Management responsibilities for institutional Industries activities is changed from the Director of the Division of Prisons to the Secretary of the Department of Corrections.  The Secretary is included as an ex officio member of the Institutional Industries Board of Directors but cannot be the Chairman of the Board. 

Fiscal Note:      Attached.

House Committee ‑ Testified For:    None Presented.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    None Presented.

House Committee - Testimony Against:      None Presented.