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SB 214: "An Act authorizing the commissioner of corrections to establish a correctional industries program; establishing a correctional industries board; authorizing the Department of Corrections to receive money from the employment of prisoners; and providing for an effective date."

00                             SENATE BILL NO. 214                                                                         
01 "An Act authorizing the commissioner of corrections to establish a correctional                                         
02 industries program; establishing a correctional industries board; authorizing the                                       
03 Department of Corrections to receive money from the employment of prisoners; and                                        
04 providing for an effective date."                                                                                       
05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
06    * Section 1. AS 33.30.191 (e) is amended to read:                                                                  
07            (e)  The provisions of AS 23 do not apply to the employment of prison inmates                                
08       under this section.                                                                                           
09    * Sec. 2. AS 33.30 is amended by adding new sections to read:                                                      
10 Sec. 33.30.195. Correctional industries program. (a) In addition to entering                                          
11 contracts or cooperative agreements under AS 33.30.191, the commissioner may                                            
12 establish and administer a correctional industries program based on voluntary prisoner                                  
13       participation.                                                                                                    
14            (b)  Upon approval by the Correctional Industries Board under AS 33.30.196,                                  
01 the commissioner may administer a correctional industries program and may enter into                                    
02 contracts or agreements with public agencies, private organizations, or individuals for                                 
03 the employment of prisoners in the performance of services or the production of                                         
04       articles, materials, or supplies.                                                                                 
05            (c)  A contract or agreement with an individual or private organization must                                 
06       require                                                                                                           
07                 (1)  payment of compensation to prison inmates under                                                    
08       AS 33.30.201(g); and                                                                                              
09                 (2)  the individual or private organization to comply with the workers'                                 
10       compensation provisions of AS 23.30.                                                                              
11 (d)  The commissioner shall determine the prices that products and services                                             
12 will be sold, based on the approximate fair market value of products and services of                                    
13 comparable quality available from commercial sources and may sell a product or                                          
14       service under this subsection to a public agency, private organization, or individual.                            
15 (e)  In employing prisoners, the department shall comply with federal and state                                         
16       health and safety regulations.                                                                                    
17 (f)  Prisoners employed under this section are not state employees nor do they                                          
18 have the rights or privileges given to state employees, including the right to participate                              
19       in collective bargaining.                                                                                         
20 Sec. 33.30.196. Correctional Industries Board. (a) In addition to the powers                                          
21 and duties under AS 33.30.197, the Correctional Industries Board is established to                                      
22 provide general policy direction to the commissioner when implementing the                                              
23       correctional industries program under AS 33.30.195.                                                               
24            (b)  The board consists of four members as follows:                                                          
25 (1)  the commissioner of labor and workforce development or                                                             
26       commissioner's designee; and                                                                                      
27                 (2)  the commissioner of corrections or commissioner's designee; and                                    
28 (3)  two representatives of organized labor whom the governor shall                                                     
29 appoint from a list of nominees submitted by a labor organization; in this paragraph,                                   
30 "labor organization" means a nationally recognized labor organization, organized for                                    
31 the purpose, in whole or in part, of collective bargaining, dealing with employers                                      
01       concerning grievances, terms or conditions of employment, or of other mutual aid or                               
02       protection of employees.                                                                                          
03 (c)  Members of the board serve staggered three-year terms. A public member                                             
04 appointed under (b)(3) of this section may be removed from office by the governor. If                                   
05 a vacancy occurs, the governor shall appoint a member for the unexpired portion of                                      
06       the term.                                                                                                         
07            (d)  The board shall elect a chair from among its members by a majority vote.                                
08       The chair shall serve on a yearly basis.                                                                          
09            (e)  The board shall meet at least quarterly at the call of the chair, at the request                        
10 of the majority of the members, or at a regularly scheduled time as determined by a                                     
11       majority of the members.                                                                                          
12 (f)  The two public members of the board serve without compensation but are                                             
13 entitled to per diem and travel expenses authorized for boards and commissions under                                    
14       AS 39.20.180.                                                                                                     
15            (g)  The department shall provide staff and administrative support to the board.                             
16 Sec. 33.30.197. Powers and duties of the board. (a) The board shall monitor                                           
17 the correctional industries program; approve contracts or agreements with public                                        
18 agencies, private organizations, or individuals under AS 33.30.195; and make                                            
19 recommendations as to the advisability of establishing, expanding, or discontinuing                                     
20 the contracts or agreements to enable the program to operate as nearly as possible in a                                 
21 self-supporting manner and to provide diversified work activities for prisoners. In                                     
22 making a recommendation, the board shall consider testimony provided under (b) of                                       
23       this section.                                                                                                     
24 (b)  The board shall hold public hearings to provide an opportunity for persons                                         
25 or organizations who may be affected by a proposed recommendation of the                                                
26 correctional industries program to present written comments or oral testimony on the                                    
27       proposed recommendation.                                                                                          
28 (c)  The board shall keep a record of all meetings and hearings and make these                                          
29       records available for public inspection.                                                                          
30    * Sec. 3. AS 33.30.201(a) is amended to read:                                                                      
31 (a)  Except as provided in (g) of this section, each [EACH] prisoner who is                                         
01 productively employed, as defined in AS 33.30.191(g)(1), (3), or (4)                                                
02 [AS 33.30.191(g)(1) OR (3) - (5)], may receive for that work compensation at a rate                                     
03 determined by the commissioner under this section [IF THE MONEY IS                                                      
04 AVAILABLE FROM LEGISLATIVE APPROPRIATIONS]. Compensation                                                                
05 established by the commissioner under this section may not exceed 50 percent of the                                     
06 minimum wage established in AS 23.10.065; however, if required to comply with a                                         
07 federal statute or regulation, a higher compensation may be established by the                                          
08       commissioner.                                                                                                     
09    * Sec. 4. AS 33.30.201(c) is amended to read:                                                                      
10 (c)  The commissioner shall disburse compensation received under (a) and (g)                                        
11 of this section, after any deduction required by (b) and (g) of this section, in the                                
12       following order of priority:                                                                                      
13                 (1)  for support of the prisoner's dependents, if any;                                                  
14 (2) to pay a restitution or fine of the prisoner ordered by a                                                       
15       sentencing court;                                                                                             
16 (3) [(2)]  to reimburse the state for compensation awarded under                                                    
17       AS 18.67 resulting from the prisoner's criminal conduct;                                                          
18 (4) [(3)]  to pay a civil judgment resulting from the prisoner's criminal                                           
19       conduct;                                                                                                          
20 [(4)  TO PAY A RESTITUTION OR FINE OF THE PRISONER                                                                      
21       ORDERED BY A SENTENCING COURT;]                                                                                   
22 (5)  for the payment of fees for the prisoner's utilities services under                                                
23       AS 33.30.017;                                                                                                     
24 (6)  for the purchase of clothing and commissary items for the                                                          
25       prisoner's personal use.                                                                                          
26    * Sec. 5. AS 33.30.201(d) is amended to read:                                                                      
27 (d)  A prisoner's compensation remaining after any deductions under (b) and                                         
28 (g) of this section and disbursements under (c) of this section is to be credited to the                            
29 prisoner and, except as provided in (e) of this section, must be retained by the                                        
30 department for the primary purpose of being available to the prisoner at the time of                                    
31 release. The commissioner shall maintain individual prisoner accounts for those                                         
01 earnings. The commissioner may, however, permit the prisoner to draw on a portion of                                    
02       that money for other purposes that the commissioner considers appropriate.                                        
03    * Sec. 6. AS 33.30.201 is amended by adding a new subsection to read:                                              
04 (g)  Each prisoner employed under AS 33.30.195 may receive compensation                                                 
05 for work performed at a rate determined by the commissioner. Compensation for work                                      
06 performed under a contract or agreement with an individual or private organization                                      
07 under AS 33.30.195 may not be less than the minimum wage required by                                                    
08 AS 23.10.065. The commissioner may deduct the cost of confinement of the prisoner                                       
09 up to the statewide average cost of confinement before disbursements are made under                                     
10       (c) of this section.                                                                                              
11    * Sec. 7. AS 36.30.313 is amended to read:                                                                         
12 Sec. 36.30.313. Procurements provided through employment of prison                                                    
13 inmates. A procurement of products or services provided through the employment of                                     
14 prison inmates under AS 33.30.191 and 33.30.195 may be made without competitive                                     
15 sealed bidding or competitive sealed proposals, in accordance with regulations                                          
16       adopted by the commissioner.                                                                                    
17    * Sec. 8. AS 37.05.146(c) is amended by adding a new paragraph to read:                                            
18 (90)  receipts of the Department of Corrections from contracts or                                                       
19       agreements under AS 33.30.195.                                                                                    
20    * Sec. 9. AS 41.21.026(f) is amended to read:                                                                    
21 (f)  In addition to the activities, services, and products for which the                                                
22 department may charge or collect a fee under (a) of this section, the department may                                    
23 sell informational, educational, or promotional merchandise. The department shall                                       
24 price merchandise sold under this subsection in a manner that ensures a reasonable                                      
25 monetary return to the state. To the extent practicable, the department shall sell only                                 
26 merchandise produced or manufactured, including printing, screen printing, and                                          
27 embroidery, in the United States that, subject to AS 36.30, is procured from either an                                  
28 Alaska bidder or a person that employs prisoners under AS 33.30.195                                                 
29       [AS 33.30.191(b)].                                                                                                
30    * Sec. 10. AS 33.30.191(b) and 33.30.191(g)(5) are repealed.                                                       
31    * Sec. 11. This Act takes effect July 1, 2018.