SENATE BILL REPORT

                           ESB 5989

               AS PASSED SENATE, APRIL 30, 1993

Brief Description:  Expanding correctional industries.

SPONSORS: Senators Hargrove and Rinehart

Staff:  Dick Armstrong (786‑7460)

BACKGROUND:

The Department of Corrections, Division of Correctional Industries, is required to develop and implement work programs that provide jobs, work experience and training to inmates and to reduce a portion of the financial burden of incarceration.  The department operates five classes of work programs.  The inmates receive financial compensation for their work ranging from $30 per month for Class IV work programs to the prevailing wage for offenders employed in Class I jobs. 

Class I Industries allows private companies to set up businesses within the corrections institutions.  Class II Industries is state-owned and managed directly by DOC to reduce the costs of goods and services for tax supported agencies and for nonprofit organizations.  State agencies are  required to purchase articles and products produced by Class II Industries, unless the articles do not meet the requirements of the agency, are not equal or better in quality, or the price of the product is higher than the private sector price. 

The department is required to develop a formula to determine how much should be deducted from the inmate's wages to partially cover the cost of incarceration and development of correctional industries programs.

SUMMARY:

State agencies and the Legislature are to purchase goods and services from DOC Correctional Industries II programs if the goods and services would otherwise be purchased from outside the state.

A formula is set forth in statute for deductions from the wages of certain DOC inmates who are not under the jurisdiction of community correction.  DOC is to deduct taxes and legal financial obligations from the gross wages of: (1) inmates participating in Class I and Class II programs, and (2) inmates earning more than the minimum wage.  From the remaining amount, 10 percent is deducted for crime victims' compensation; 10 percent is deducted for personal savings up to at least $950; 30 percent is deducted for costs of incarceration.  When an inmate's savings account is at least $950, thereafter 40 percent is deducted for incarceration costs.

DOC is to increase inmate participation in Class I and Class II as follows:

               200 inmate increase by June 30, 1995

               400 inmate increase by June 30, 1996

               600 inmate increase by June 30, 1997

               900 inmate increase by June 30, 1998

              1200 inmate increase by June 30, 1999

              1500 inmate increase by June 30, 2000

Inmate employment is to be meaningful and designed to reduce recidivism.  In addition, correctional industries impact on in-state businesses is to be minimized.  The nine-member board of directors is to be composed of three labor representatives, three business representatives representing a cross-section of industries and all sizes of employers, and three members from the general public.

DOC is to submit an implementation plan to expand correctional industries by January 1, 1994.  DOC must also report to the Legislature by January 1, 1994, regarding any impediments to compliance with the inmate work participation percentages, and ways to achieve compliance.

Provisions of the bill which provide for deductions from the wages of inmates and greater inmate participation in correctional industries program are effective June 30, 1994.

Appropriation:  none

Revenue:  none

Fiscal Note:  none requested