AN ACT Relating to institutional industries; and amending RCW 72.09.060, 72.09.070, 72.09.080, 72.09.090, and 72.09.100.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1. Section 6, chapter 136, Laws of 1981 and RCW 72.09.060 are each amended to read as follows:

The department of corrections may be organized into such divisions or offices as the secretary may determine, but shall include divisions for (1) ((~~institutional industries, (2)~~)) prisons and other custodial institutions and ((~~(3)~~)) (2) probation, parole, community service, restitution, and other nonincarcerative sanctions. The secretary shall have at least one person on his staff who shall have the responsibility for developing a program which encourages the use of volunteers, for citizen advisory groups, and for similar public involvement programs in the corrections area. Minimum qualification for staff assigned to public involvement responsibilities shall include previous experience in working with volunteers or volunteer agencies.

Sec. 2. Section 8, chapter 136, Laws of 1981 and RCW 72.09.070 are each amended to read as follows:

(1) There is created an institutional industries board of directors which shall have the composition provided in RCW 72.09.080.

(2) The board shall advise the department of corrections in adopting and implementing programs designed to:

(a) Offer inmates employment, work experience, and training in vocations which may provide opportunities for legitimate means of livelihood upon their release from custody.

(b) Provide industries which will reduce the tax burden of corrections through production of goods and services for sale and use.

(c) Operate correctional work programs in an effective and efficient manner which are as similar as possible to those provided by the private sector.

(3) In addition, the board of directors shall:

(a) ((~~Recommend to the director candidates for appointment as director of the institutional industries division.~~

~~(b) At least annually evaluate the work performance of the director of the institutional industries division and submit this evaluation to the secretary.~~

~~(c)~~)) Advise the ((~~director of the institutional industries division~~)) prisons regarding institutional industries activities in the selection of, contracting for, and supervision of work programs with participating private-enterprise firms.

((~~(d)~~)) (b) Advise the ((~~director of the institutional industries division~~)) secretary in the development and design of institutional industries work programs.

((~~(e)~~)) (c) Advise the secretary ((~~and the director of the institutional industries division in~~)) as to the investment of funds in institutional industry enterprises and work programs.

((~~(f)~~)) (d) Review and evaluate the productivity and appropriateness of all correctional work programs and report on their effectiveness to ((~~the director of the division and to~~)) the secretary.

((~~(g)~~)) (e) Review and evaluate on an on-going basis all financial reports for work programs.

((~~(h)~~)) (f) Prepare and transmit to the governor and legislature through the secretary the report required under RCW 72.60.280.

Sec. 3. Section 9, chapter 136, Laws of 1981 and RCW 72.09.080 are each amended to read as follows:

(1) The institutional industries board of directors shall consist of nine voting members. Seven members shall be appointed by the secretary and shall serve three-year staggered terms. Initially, the secretary shall appoint two members to one-year terms, two members to two-year terms, and three members to three-year terms. In addition, the secretary ((~~and the director of the institutional industries division~~)) shall be an ex officio member((s)). The speaker of the house of representatives and the president of the senate shall each appoint one member from each of the two largest caucuses in their respective houses. The legislators so appointed shall be nonvoting members and shall serve two-year terms, or until they cease to be members of the house from which they were appointed, whichever occurs first. The seven members appointed by the secretary shall include representatives from both labor and industry.

(2) The board of directors shall elect a chairman and such other officers as it deems appropriate. However, the chairman may not be the secretary ((~~or the director of the institutional industries division~~)).

(3) The voting members of the board of directors shall serve without compensation but shall be reimbursed by the department for travel expenses under RCW 43.03.050 and 43.03.060, as now or hereafter amended. Legislative members shall be reimbursed under RCW 44.04.120, as now or hereafter amended.

(4) The secretary shall provide such staff services, facilities, and equipment as the board shall require to carry out its duties.

Sec. 4. Section 10, chapter 136, Laws of 1981 and RCW 72.09.090 are each amended to read as follows:

Institutional industries shall have the use of the tools, materials, and equipment which were used by the department of social and health services for correctional work programs.

The ((~~division's~~)) net profits from institutional industries' sales and contracts shall be placed in a special account and shall be reinvested, without appropriation, in the expansion and improvement of institutional industries. However, beginning five years after July 1, 1981, the board of directors shall annually recommend that some portion of the profits from institutional industries be returned to the state general fund.

The board and secretary shall request appropriations or increased appropriations whenever it appears that additional money is needed to provide for the establishment and operation of a comprehensive institutional industries program.

Sec. 5. Section 11, chapter 136, Laws of 1981 as last amended by section 2, chapter 193, Laws of 1986 and RCW 72.09.100 are each amended to read as follows:

It is the intent of the legislature to vest in the department the power to provide for a comprehensive inmate work program and to remove statutory and other restrictions which have limited work programs in the past. For purposes of establishing such a comprehensive program, the legislature recommends that the department consider adopting any or all, or any variation of, the following classes of work programs:

(1) CLASS I: FREE VENTURE INDUSTRIES. The industries in this class shall be operated and managed in total or in part by any profit or nonprofit organization pursuant to an agreement between the organization and the department. The organization shall produce goods or services for sale to both the public and private sector.

The department of corrections shall supply appropriate security and custody services without charge to the participating firms.

Inmates who work in free venture industries shall do so at their own choice. They shall be paid a wage not less than sixty percent of the approximate prevailing wage within the state for the occupation, as determined by the ((~~director of the institutional industries division~~)) secretary. If the ((~~director~~)) secretary finds that he cannot reasonably determine the wage, then the pay shall not be less than the federal minimum wage.

(2) CLASS II: TAX REDUCTION INDUSTRIES. Industries in this class shall be state-owned and operated enterprises designed to reduce the costs for goods and services for tax-supported agencies and for nonprofit organizations. The industries selected for development within this class shall, as much as possible, match the available pool of inmate work skills and aptitudes with the work opportunities in the free community. The industries shall be closely patterned after private sector industries but with the objective of reducing public support costs rather than making a profit. The products and services of this industry, including purchased products and services necessary for a complete product line, may be sold to public agencies and to nonprofit organizations: PROVIDED, That to avoid waste or spoilage and consequent loss to the state, when there is no public sector market for such goods, byproducts and surpluses of timber, agricultural, and animal husbandry enterprises may be sold to private persons, at private sale. Surplus by-products and surpluses of timber, agricultural and animal husbandry enterprises that cannot be sold to public agencies or to private persons may be donated to nonprofit organizations. All sales of surplus products shall be carried out in accordance with rules prescribed by the secretary.

Security and custody services shall be provided without charge by the department of corrections.

Inmates working in this class of industries shall do so at their own choice and shall be paid for their work on a gratuity scale which shall not exceed the federal minimum wage and which is approved by the ((~~director of institutional industries~~)) secretary.

(3) CLASS III: INSTITUTIONAL SUPPORT INDUSTRIES. Industries in this class shall be operated by the department of corrections. They shall be designed and managed to accomplish the following objectives:

(a) Whenever possible, to provide basic work training and experience so that the inmate will be able to qualify for better work both within institutional industries and the free community. It is not intended that an inmate's work within this class of industries should be his or her final and total work experience as an inmate.

(b) Whenever possible, to provide forty hours of work or work training per week.

Supervising, management, and custody staff shall be employees of the department.

All able and eligible inmates who are assigned work and who are not working in other classes of industries shall work in this class.

Except for inmates who work in work training programs, inmates in this class shall be paid for their work in accordance with an inmate gratuity scale. The scale shall be adopted by the secretary of corrections.

(4) CLASS IV: COMMUNITY WORK INDUSTRIES. Industries in this class shall be operated by the department of corrections. They shall be designed and managed to provide services in the inmate's resident community at a reduced cost. The services shall be provided to public agencies, to persons who are poor or infirm, or to nonprofit organizations.

Inmates in this program shall reside in facilities owned by, contracted for, or licensed by the department of corrections. A unit of local government shall provide work supervision services without charge to the state and shall pay the inmate's wage.

The department of corrections shall reimburse participating units of local government for liability and workers compensation insurance costs.

Inmates who work in this class of industries shall do so at their own choice and shall receive a gratuity which shall not exceed the minimum wage for their work.

(5) CLASS V: COMMUNITY SERVICE PROGRAMS. Programs in this class shall be subject to supervision by the department of corrections. The purpose of this class of industries is to enable an offender, placed on community supervision, to work off all or part of a community service order as ordered by the sentencing court.

Employment shall be in a community service program operated by the state, local units of government, or a nonprofit agency.

To the extent that funds are specifically made available for such purposes, the department of corrections shall reimburse nonprofit agencies for workers compensation insurance costs.