SENATE BILL REPORT

SB 6581

BYSenator Lee

Changing provisions relating to inmate work programs.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):January 25, 1990; February 2, 1990

Majority Report:     That Substitute Senate Bill No. 6581 be substituted therefor, and the substitute bill do pass and be referred to Committee on Ways & Means.

     Signed by Senators Lee, Chairman; McMullen, Matson, Murray, Smitherman, Williams.

Senate Staff:Jack Brummel (786-7428)

                February 5, 1990

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, FEBRUARY 2, 1990

BACKGROUND:

The Correctional Education Association, a group of educators who work in prisons, estimates that only one in four prisoners has a high school diploma.  Most prisoners also have a tenuous attachment to the workforce.  Combining basic skills and on the job training for prisoners has been suggested as one mechanism to both reduce the recidivism rate and provide trained workers for businesses troubled by labor shortages.

SUMMARY:

Inmate work programs operated by the Department of Corrections must be operated in conjunction with an educational institution, include academic and job skills training, and, to the extent possible, use private industry as employers.  Educational institutions cooperating with the department on training shall offer academic credit for completed course work. 

Businesses employing prison inmates in work programs are not required to pay unemployment insurance taxes or industrial insurance premiums.  Sales of goods or services produced exclusively by prison inmates do not contribute to the gross proceeds of sales for purposes of business and occupation taxes.  Inmates employed by businesses operating work programs approved by the Department of Corrections are entitled to unemployment insurance benefits upon release from prison and are covered by the state's industrial insurance program.  The legislative recommendations on work programs are modified:  wages paid to inmates are closer to average or minimum wages, depending on the classification of the work.

EFFECT OF PROPOSED SUBSTITUTE:

The requirement that inmate work programs be operated by the Department of Corrections in conjunction with an educational institution is removed.  Sections 3 and 4, relating to unemployment compensation and industrial insurance, are deleted.

Appropriation:  none

Revenue:   none

Fiscal Note:    available

Senate Committee - Testified:   Graeme Sackrison, ESD; Lynn Codmell, DOC-CI (pro); Dave Carnahan, DOC-Education (pro); Jill Will, DOC-CI (pro)