BILL REQ. #:  H-1198.1 

Read first time 02/07/2003.   Referred to Committee on Criminal Justice & Corrections.

     AN ACT Relating to inmate labor; amending RCW 72.01.150, 72.09.070, 72.09.100, 72.60.110, and 72.09.010; reenacting and amending RCW 72.09.100; adding a new section to chapter 72.09 RCW; repealing RCW 43.19.535; providing an effective date; and providing an expiration date.

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

Sec. 1   RCW 72.01.150 and 1979 c 141 s 150 are each amended to read as follows:
     The secretary shall:
     (1) Establish, install and operate, at the several state institutions under his control, such industries and industrial plants as may be most suitable and beneficial to the inmates thereof, and as can be operated at the least relative cost and the greatest relative benefit to the state, taking into consideration the needs of the state institutions for industrial products, and the amount and character of labor of inmates available at the several institutions;
     (2) Authorize the installment and operation only of industries and businesses whose manufactured goods or services are solely produced or provided by out-of-state or foreign suppliers;
     (3) Supply the several institutions with the necessary industrial products produced thereat;
     (((3))) (4) Exchange with, or furnish to, other state institutions industrial products at prices to be fixed by the department, not to exceed in any case the price of such products in the open market;
     (((4))) (5) Sell and dispose of surplus industrial products produced, to such persons and under such rules, regulations, terms, and prices as may be in his judgment for the best interest of the state;
     (((5))) (6) Sell products of the plate mill to any department, to any state, county, or other public institution and to any governmental agency, of this or any other state under such rules, regulations, terms, and prices as may be in his judgment for the best interests of the state.

Sec. 2   RCW 72.09.070 and 1994 sp.s. c 7 s 535 are each amended to read as follows:
     (1) There is created a correctional industries board of directors which shall have the composition provided in RCW 72.09.080.
     (2) Consistent with general department of corrections policies and procedures pertaining to the general administration of correctional facilities, the board shall establish and implement policy for correctional industries programs, work crews provided under RCW 9.94A.725, labor camps as authorized under RCW 72.64.060, and work camps provided in RCW 72.64.050 designed to:
     (a) Offer inmates meaningful employment, work experience, and training in vocations that are specifically designed to reduce recidivism and thereby enhance public safety by providing opportunities for legitimate means of livelihood upon their release from custody;
     (b) Provide industries which will reduce the tax burden of corrections and save taxpayers money through production of goods and services for sale and use;
     (c) Provide manufactured goods or services that are solely produced or provided by out-of-state or foreign suppliers;
     (d) Operate correctional work programs in an effective and efficient manner which are as similar as possible to those provided by the private sector outside of the state;
     (((d))) (e) Encourage the development of and provide for selection of, contracting for, and supervision of work programs with participating private enterprise firms;
     (((e))) (f) Develop and design correctional industries work programs whose primary function is to replace goods manufactured or services obtained from outside the state or from a foreign supplier;
     (((f))) (g) Invest available funds in correctional industries enterprises and meaningful work programs that minimize the impact on in-state jobs and businesses.
     (3) The board of directors shall at least annually review the work performance of the director of correctional industries division with the secretary.
     (4) The director of correctional industries division shall review and evaluate the productivity, funding, and appropriateness of all correctional work programs and report on their effectiveness to the board and to the secretary.
     (5) The board of directors shall have the authority to identify and establish trade advisory or apprenticeship committees to advise them on correctional industries work programs. The secretary shall appoint the members of the committees.
     Where a labor management trade advisory and apprenticeship committee has already been established by the department pursuant to RCW 72.62.050 the existing committee shall also advise the board of directors.
     (6) The board shall develop a strategic yearly marketing plan that shall be consistent with and work towards achieving the goals established in the six-year phased expansion of class I and class II correctional industries established in RCW 72.09.111. This marketing plan shall be presented to the appropriate committees of the legislature by January 17 of each calendar year until the goals set forth in RCW 72.09.111 are achieved.

Sec. 3   RCW 72.09.100 and 2002 c 175 s 49 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 employer model 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 customer model industries in this class shall be operated and managed by the department to provide Washington state manufacturers or businesses with products or services currently produced or provided by out-of-state or foreign suppliers. The correctional industries board of directors shall review these proposed industries before the department contracts to provide such products or services. The review shall include an analysis of the potential impact of the proposed products and services on the Washington state business community and labor market.
     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 comparable to the wage paid for work of a similar nature in the locality in which the industry is located, as determined by the director of correctional industries. If the director cannot reasonably determine the comparable wage, then the pay shall not be less than the federal minimum wage.
     An inmate who is employed in the class I program of correctional industries shall not be eligible for unemployment compensation benefits pursuant to any of the provisions of Title 50 RCW until released on parole or discharged.
     (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, to nonprofit organizations, and to private contractors when the goods purchased will be ultimately used by a public agency or a nonprofit organization. Clothing manufactured by an industry in this class may be donated to nonprofit organizations that provide clothing free of charge to low-income persons. Correctional industries products and services shall be reviewed by the correctional industries board of directors before offering such products and services for sale to private contractors. The board of directors shall conduct a yearly marketing review of the products and services offered under this subsection. Such review shall include an analysis of the potential impact of the proposed products and services on the Washington state business community. 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 byproducts 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 wage paid for work of a similar nature in the locality in which the industry is located and which is approved by the director of correctional industries.
     Subject to approval of the correctional industries board, provisions of RCW 41.06.380 prohibiting contracting out work performed by classified employees shall not apply to contracts with Washington state businesses entered into by the department of corrections through class II industries.
     (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 correctional 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.
     (c) Whenever possible, to offset tax and other public support costs.
     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 wage paid for work of a similar nature in the locality in which the industry is located.
     (5) CLASS V: COMMUNITY RESTITUTION 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 inmate, placed on community supervision, to work off all or part of a community restitution order as ordered by the sentencing court.
     Employment shall be in a community restitution 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.

Sec. 4   RCW 72.09.100 and 2002 c 354 s 238 and 2002 c 175 s 49 are each reenacted and 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 employer model 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 customer model industries in this class shall be operated and managed by the department to provide Washington state manufacturers or businesses with products or services currently produced or provided by out-of-state or foreign suppliers. The correctional industries board of directors shall review these proposed industries before the department contracts to provide such products or services. The review shall include an analysis of the potential impact of the proposed products and services on the Washington state business community and labor market.
     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 comparable to the wage paid for work of a similar nature in the locality in which the industry is located, as determined by the director of correctional industries. If the director cannot reasonably determine the comparable wage, then the pay shall not be less than the federal minimum wage.
     An inmate who is employed in the class I program of correctional industries shall not be eligible for unemployment compensation benefits pursuant to any of the provisions of Title 50 RCW until released on parole or discharged.
     (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, to nonprofit organizations, and to private contractors when the goods purchased will be ultimately used by a public agency or a nonprofit organization. Clothing manufactured by an industry in this class may be donated to nonprofit organizations that provide clothing free of charge to low-income persons. Correctional industries products and services shall be reviewed by the correctional industries board of directors before offering such products and services for sale to private contractors. The board of directors shall conduct a yearly marketing review of the products and services offered under this subsection. Such review shall include an analysis of the potential impact of the proposed products and services on the Washington state business community. 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 byproducts 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 wage paid for work of a similar nature in the locality in which the industry is located and which is approved by the director of correctional industries.
     Subject to approval of the correctional industries board, provisions of RCW 41.06.142 shall not apply to contracts with Washington state businesses entered into by the department of corrections through class II industries.
     (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 correctional 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.
     (c) Whenever possible, to offset tax and other public support costs.
     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 wage paid for work of a similar nature in the locality in which the industry is located.
     (5) CLASS V: COMMUNITY RESTITUTION 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 inmate, placed on community supervision, to work off all or part of a community restitution order as ordered by the sentencing court.
     Employment shall be in a community restitution 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.

Sec. 5   RCW 72.60.110 and 1959 c 28 s 72.60.110 are each amended to read as follows:
     The department is hereby authorized and empowered to cause the inmates in the state institutions of this state to be employed in the rendering of such services and in the production and manufacture of such articles, materials, and supplies as are now, or may hereafter be, needed by the state, or any political subdivision thereof, or that may be needed by any public institution of the state or of any political subdivision thereof. The products and services manufactured or supplied by inmates must be such articles, materials, supplies, and services that are solely produced or provided by out-of-state or foreign suppliers.

Sec. 6   RCW 72.09.010 and 1995 1st sp.s. c 19 s 2 are each amended to read as follows:
     It is the intent of the legislature to establish a comprehensive system of corrections for convicted law violators within the state of Washington to accomplish the following objectives.
     (1) The system should ensure the public safety. The system should be designed and managed to provide the maximum feasible safety for the persons and property of the general public, the staff, and the inmates.
     (2) The system should punish the offender for violating the laws of the state of Washington. This punishment should generally be limited to the denial of liberty of the offender.
     (3) The system should positively impact offenders by stressing personal responsibility and accountability and by discouraging recidivism.
     (4) The system should treat all offenders fairly and equitably without regard to race, religion, sex, national origin, residence, or social condition.
     (5) The system, as much as possible, should reflect the values of the community including:
     (a) Avoiding idleness. Idleness is not only wasteful but destructive to the individual and to the community.
     (b) Adoption of the work ethic. It is the community expectation that all individuals should work and through their efforts benefit both themselves and the community.
     (c) Providing opportunities for self improvement. All individuals should have opportunities to grow and expand their skills and abilities so as to fulfill their role in the community.
     (d) Linking the receipt or denial of privileges to responsible behavior and accomplishments. The individual who works to improve himself or herself and the community should be rewarded for these efforts. As a corollary, there should be no rewards for no effort.
     (e) Sharing in the obligations of the community. All citizens, the public and inmates alike, have a personal and fiscal obligation in the corrections system. All communities must share in the responsibility of the corrections system.
     (6) The system should provide for prudent management of resources. The avoidance of unnecessary or inefficient public expenditures on the part of offenders and the department is essential. Offenders must be accountable to the department, and the department to the public and the legislature. The human and fiscal resources of the community are limited. The management and use of these resources can be enhanced by wise investment, productive programs, the reduction of duplication and waste, and the joining together of all involved parties in a common endeavor. Since most offenders return to the community, it is wise for the state and the communities to make an investment in effective rehabilitation programs for offenders and the wise use of resources.
     (7) The system should provide for restitution. Those who have damaged others, persons or property, have a responsibility to make restitution for these damages.
     (8) The system should be accountable to the citizens of the state. In return, the individual citizens and local units of government must meet their responsibilities to make the corrections system effective.
     (9) The system should not damage the interests of law-abiding residents of the state of Washington and should hold their interests above the interests of inmates when those interests are in conflict.
     (10) The system should meet those national standards which the state determines to be appropriate.

NEW SECTION.  Sec. 7   RCW 43.19.535 (Purchase of goods and services from inmate work programs) and 1981 c 136 s 15 are each repealed.

NEW SECTION.  Sec. 8   A new section is added to chapter 72.09 RCW to read as follows:
     Inmates currently under the custody of the department, who participate in a work crew as provided under RCW 9.94A.725, labor camp as authorized under RCW 72.64.060, work camp as provided in RCW 72.64.050, or provide any inmate labor as part of a department interlocal cooperation agreement as provided in chapter 39.34 RCW, are prohibited from providing services to or working on any project that is not owned by a governmental entity.

NEW SECTION.  Sec. 9   Section 3 of this act expires July 1, 2005.

NEW SECTION.  Sec. 10   Section 4 of this act takes effect July 1, 2005.