BILL REQ. #:  H-1073.1 

Read first time 01/26/2007.   Referred to Committee on Local Government.

     AN ACT Relating to local government contracts for correctional industries services; and amending RCW 72.09.100.

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

Sec. 1   RCW 72.09.100 and 2005 c 346 s 1 are each amended to read as follows:
     (1) 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. It is also the intent of the legislature to ensure that the correctional industries board of directors, in developing and selecting correctional industries work programs, does not encourage the development of, or provide for selection of or contracting for, or the significant expansion of, any new or existing class I correctional industries work programs that unfairly compete with Washington businesses. The legislature intends that the requirements relating to fair competition in the correctional industries work programs be liberally construed by the correctional industries board of directors to protect Washington businesses, and Washington jobs, from unfair competition.
     (2) 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))) (a) CLASS I: FREE VENTURE INDUSTRIES.
     (((a))) (i) 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.
     (((b))) (ii) 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.
     (((c))) (iii) The correctional industries board of directors shall review these proposed industries, including any potential new class I industries work program or the significant expansion of an existing class I industries work program, before the department contracts to provide such products or services. The review shall include the analysis required under RCW 72.09.115 to determine if the proposed correctional industries work program will compete with any Washington business. An agreement for a new class I correctional industries work program, or an agreement for a significant expansion of an existing class I correctional industries work program, that unfairly competes with any Washington business is prohibited.
     (((d))) (iv) The department of corrections shall supply appropriate security and custody services without charge to the participating firms.
     (((e))) (v) 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.
     (((f))) (vi) 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))) (b) CLASS II: TAX REDUCTION INDUSTRIES.
     (((a))) (i) Industries in this class shall be state-owned and operated enterprises designed primarily to reduce the costs for goods and services for tax-supported agencies and for nonprofit organizations.
     (((b)(i))) (ii)(A) 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.
     (((ii))) (B) The products and services of this industry, including purchased products and services necessary for a complete product line, may be sold to the following:
     (((A))) (I) Public agencies;
     (((B))) (II) Nonprofit organizations;
     (((C))) (III) Private contractors when the goods purchased will be ultimately used by a public agency or a nonprofit organization;
     (((D))) (IV) An employee and immediate family members of an employee of the department of corrections; and
     (((E))) (V) A person under the supervision of the department of corrections and his or her immediate family members.
     (((iii))) (C) The correctional industries board of directors shall authorize the type and quantity of items that may be purchased and sold under (b)(ii)(((D))) (B)(IV) and (((E))) (V) of this subsection.
     (((iv))) (D) It is prohibited to purchase any item purchased under (b)(ii)(((D))) (B)(IV) and (((E))) (V) of this subsection for the purpose of resale.
     (((v))) (E) Clothing manufactured by an industry in this class may be donated to nonprofit organizations that provide clothing free of charge to low-income persons.
     (((c)(i))) (iii)(A) Class II 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.
     (((ii))) (B) 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.
     (((d))) (iv) Security and custody services shall be provided without charge by the department of corrections.
     (((e))) (v) 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.
     (((f))) (vi) 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))) (c) CLASS III: INSTITUTIONAL SUPPORT INDUSTRIES.
     (((a))) (i) Industries in this class shall be operated by the department of corrections. They shall be designed and managed to accomplish the following objectives:
     (((i))) (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.
     (((ii))) (B) Whenever possible, to provide forty hours of work or work training per week.
     (((iii))) (C) Whenever possible, to offset tax and other public support costs.
     (((b))) (ii) Class III correctional industries shall be reviewed by the correctional industries board of directors to set policy for work crews. The department shall present to the board of directors quarterly detail statements showing where work crews worked, what correctional industry class, and the hours worked. The board of directors may review any class III program at its discretion.
     (((c))) (iii) Supervising, management, and custody staff shall be employees of the department.
     (((d))) (iv) All able and eligible inmates who are assigned work and who are not working in other classes of industries shall work in this class.
     (((e))) (v) 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))) (d) CLASS IV: COMMUNITY WORK INDUSTRIES.
     (((a))) (i) 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.
     (((b))) (ii) Class IV correctional industries shall be reviewed by the correctional industries board of directors to set policy for work crews. The department shall present to the board of directors quarterly detail statements showing where work crews worked, what correctional industry class, and the hours worked. The board of directors may review any class IV program at its discretion. Class IV correctional industries operated in work camps established pursuant to RCW 72.64.050 are exempt from the requirements of this subsection (((4)(b))) (2)(d)(ii).
     (((c))) (iii) 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.
     (((d))) (iv) The department of corrections shall reimburse participating units of local government for liability and workers compensation insurance costs.
     (((e))) (v) 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))) (e) CLASS V: COMMUNITY RESTITUTION PROGRAMS.
     (((a))) (i) 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.
     (((b))) (ii) Employment shall be in a community restitution program operated by the state, local units of government, or a nonprofit agency.
     (((c))) (iii) 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.
     (3) This chapter does not permit a unit of local government to execute or renew a contract to purchase class II through IV correctional industries services if:
     (a) The services have been customarily and historically provided by classified public employees before the effective date of this section;
     (b) The purchase of such services will have the effect of terminating classified public employees or positions existing at the time the contract was executed or renewed; and
     (c) A bargaining unit is represented and there has not been agreement by that bargaining unit representative that such bargaining unit work can be performed by prison labor.
     (4) This section applies to all class II through IV correctional industries contracts entered into with a unit of local government on or after the effective date of this section.