HOUSE BILL REPORT

HB 2258

BYRepresentatives Day, R. Fisher, McLean, Grant, Silver, Tate, Schoon, May, Anderson, Wang, Nelson, Dellwo, Rector, and P. King; by request of  Department of Corrections

Changing conditions applying to the sale of products of correctional industries.

House Committe on Health Care

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (10)

      Signed by Representatives Braddock, Chair; Day, Vice Chair; Brooks, Ranking Republican Member; Chandler, Morris, Prentice, D. Sommers, Sprenkle, Vekich and Wolfe.

House Staff:Antonio Sanchez (786-7383)

AS REPORTED BY COMMITTEE ON HEALTH CARE FEBRUARY 1, 1990

BACKGROUND:

The Division of Correctional Industries within the Department of Corrections operates employment programs for inmates to provide employment, work experience and training, and to reduce the tax burden of corrections.  Goods and services are provided to:  the public, governmental agencies, nonprofit organizations and the correctional system itself.

Correctional Industries is not allowed to market its class II products and services to private contractors.

SUMMARY:

SUBSTITUTE BILL:  The Division of Correctional Industries is authorized to sell its products to private contractors when the goods or services will ultimately be used by a public agency or a nonprofit organization.

Correctional Industries' products and services are required to undergo review by the division's board of directors before they are offered to a private contractor.  A yearly review of these products will be conducted by the board to ensure compliance with the non- competitive directive established by the division.  The review will analyze the potential impact the proposed products and services may have on the state's business community.

The Department of Corrections will also conduct a study on the expansion of prison industries' products to the private sector.  A report to the Legislature on the department's finding is required.

The division is allowed to donate clothing manufactured by the Correctional Industries to nonprofit organizations that provide clothing free of charge to low income persons.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The ability for the Department of Corrections to donate clothing to nonprofit organizations who provide clothing free of charge is added.  The department is required to review what potential impact offering Correctional Industries' products to private contractors will have on the business community.

Fiscal Note:      Requested January 11, 1990.

House Committee ‑ Testified For:    Lynn Lodmell, Department of Corrections.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    An increased market for Correctional Industries' products would increase inmate employment, stimulate local economies, and enhance the department's public relations about the work programs.

House Committee - Testimony Against:      None.