Legislature(2005 - 2006)CAPITOL 17

04/24/2006 03:15 PM House LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Meeting Postponed to 4:00 PM Today--
+ SB 289 INSURANCE TELECONFERENCED
Moved Out of Committee
+ SB 310 EMPLOYMENT OF PRISONERS TELECONFERENCED
Moved HCS SB 310(STA) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
SB 310-EMPLOYMENT OF PRISONERS                                                                                                
                                                                                                                                
CHAIR ANDERSON announced  that the final order  of business would                                                               
be SENATE  BILL NO. 310,  "An Act  relating to the  employment of                                                               
prisoners; and providing for an effective date."                                                                                
                                                                                                                                
4:25:35 PM                                                                                                                    
                                                                                                                                
DARWIN  PETERSON, Staff  to Senator  Lyda  Green, Senate  Finance                                                               
Committee, Alaska  State Legislature, sponsor, noted  that SB 310                                                               
was introduced  at the request  of the Department  of Corrections                                                               
(DOC).  He explained that the  intent of the bill is to reinstate                                                               
the Alaska  Correctional Industries program, which  was sunsetted                                                               
along  with the  Correctional Industries  Commission, in  July of                                                               
2005.  This  legislation, he said, would  reestablish and improve                                                               
the  aforementioned  program.    He  went  on  to  say  that  the                                                               
department  would have  the authority  to participate  in federal                                                               
Prison  Industry  Enhancement  (PIE)   programs  in  addition  to                                                               
actively participating  and partnering with  private enterprises.                                                               
In regard  to the cost of  the program, he said  that the program                                                               
will be  funded through  program receipts.   Furthermore,  SB 310                                                               
promotes prisoner  responsibility and accountability  by enabling                                                               
the department  to deduct confinement costs  from inmates' wages.                                                               
These  deductions,  he  said,  may  be  used  for  child  support                                                               
payments,  victim restitution,  criminal fines,  civil judgments,                                                               
fees  for  utilities  while incarcerated  in  addition  to  other                                                               
obligations.  He  said "this is a vital piece  of legislation ...                                                               
if the state of Alaska  wants to continue using prison employment                                                               
as a tool for rehabilitation."                                                                                                  
                                                                                                                                
4:27:12 PM                                                                                                                    
                                                                                                                                
CHAIR  ANDERSON  noted   that  he  was  previously   on  the  DOC                                                               
subcommittee.   Initially, he said,  there was  concern regarding                                                               
compensation   for   inmates;   however,  he   spoke   with   the                                                               
commissioner who  explained the  importance of  the program.   He                                                               
opined  that this  program  is "critical"  to  keep the  [prison]                                                               
environment civil.                                                                                                              
                                                                                                                                
MR.  PETERSON  stated  his agreement  and  highlighted  furniture                                                               
building programs  and laundry programs, which  are important for                                                               
rehabilitation.                                                                                                                 
                                                                                                                                
4:28:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LYNN  asked if  there is  any possibility  of jobs                                                               
being taken from "law-abiding citizens."                                                                                        
                                                                                                                                
MR.  PETERSON   replied  no,  adding  that   the  Senate  Finance                                                               
Committee and the  labor unions worked to find  a compromise, and                                                               
an  amendment was  adopted in  the House  State Affairs  Standing                                                               
Committee to  add language to  ensure that this would  not occur.                                                               
He explained that  before authorizing a contract  to conduct work                                                               
with a  private organization the  commissioner must  consult with                                                               
the labor unions.                                                                                                               
                                                                                                                                
CHAIR  ANDERSON  acknowledged  members  of the  labor  unions  in                                                               
attendance, and noted their support of SB 310.                                                                                  
                                                                                                                                
4:30:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CRAWFORD expressed  concern regarding  contracted                                                               
work, and asked  how the department would  compensate for changes                                                               
in the workforce.   In addition, he inquired as  to the length of                                                               
the contracts between the department and the labor unions.                                                                      
                                                                                                                                
MR. PETERSON  replied that without  seeing contract  language, he                                                               
would be unable to answer  the question regarding contract dates;                                                               
however, he  surmised that  the labor unions  would not  want the                                                               
contract to continue over an extensive period of time.                                                                          
                                                                                                                                
4:32:02 PM                                                                                                                    
                                                                                                                                
CHAIR  ANDERSON commented  that [the  length of  contracts] is  a                                                               
regulatory interpretation,  not a  statutory interpretation.   He                                                               
said  that in  order to  have the  labor unions'  support of  the                                                               
bill,  the  aforementioned issue  needed  to  be addressed.    He                                                               
surmised  that the  contracts would  most likely  be for  a short                                                               
time, with the option of voiding the contract, if necessary.                                                                    
                                                                                                                                
REPRESENTATIVE  CRAWFORD   said  that   he  would  like   to  see                                                               
guidelines for the contracts.                                                                                                   
                                                                                                                                
MR.   PETERSON  replied   that   the  department   may  have   an                                                               
interpretation of the current regulations  which may address this                                                               
issue.                                                                                                                          
                                                                                                                                
4:33:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROKEBERG,  referring to  page 3, Section  2, asked                                                               
why the  language regarding  the impact  on private  industry was                                                               
removed.    He  opined  that   "private  organization"  does  not                                                               
indicate this level  of consultation.  In response  to a comment,                                                               
he clarified  that previously, the  bill applied to  both private                                                               
an public sector  contracts; however, it appears to  now focus on                                                               
union contracts.                                                                                                                
                                                                                                                                
MR.  PETERSON explained  that  the  aforementioned amendment  was                                                               
intended  to "raise  the bar"  for  both the  public and  private                                                               
sector.  The commissioner would  consult with local organizations                                                               
to ensure that  the contract does not result  in the displacement                                                               
of employed  workers.  He  stated that  this would apply  to both                                                               
private sector and labor union employees.   He added that if this                                                               
language is not  specific enough, the sponsor  would support more                                                               
specificity;  however,  it  is  the  sponsor's  belief  that  the                                                               
current language is appropriate.                                                                                                
                                                                                                                                
4:35:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROKEBERG questioned the  involvement of a "private                                                               
organization."                                                                                                                  
                                                                                                                                
REPRESENTATIVE GUTTENBERG, referring to  page 6, Section 9, asked                                                               
for an explanation of the intent of this section.                                                                               
                                                                                                                                
MR. PETERSON  replied that [AS  37.05.146(c)] applies  to program                                                               
receipts.   He  explained  that Section  9  includes language  to                                                               
ensure that revenue  from the program may be used  as its funding                                                               
source.                                                                                                                         
                                                                                                                                
SHARLEEN (SHAR)  GRIFFIN, Director,  Central Office,  Division of                                                               
Administrative   Services,  Department   of  Corrections   (DOC),                                                               
clarified  that  Section 9  is  intended  to support  the  Prison                                                               
Industries  Enhancement  program  (PIE),  which  is  through  the                                                               
Bureau  of Justice  Assistance  (BJA), and  is  monitored by  the                                                               
Correctional Industries Association.   She said that this program                                                               
has many regulations  that must be followed.   She explained that                                                               
this program  requires the inmates  be paid the  prevailing wage,                                                               
which must  be obtained  through the  Department of  Labor, along                                                               
with working with union organizations  to ensure that there is no                                                               
unfair  competition.   Paying prevailing  wage, she  said, allows                                                               
one  deduction for  the  offender  to pay  part  of  the cost  of                                                               
incarceration.  She  said that the money would go  to support the                                                               
program in which the inmate is working.                                                                                         
                                                                                                                                
4:38:02 PM                                                                                                                    
                                                                                                                                
MS.  GRIFFIN, in  response to  a question,  said that  prevailing                                                               
wage is  being used instead of  minimum wage so as  to not create                                                               
unfair competition with private industries.                                                                                     
                                                                                                                                
REPRESENTATIVE  GUTTENBERG  asked what  types  of  jobs would  be                                                               
available [with the PIE program].                                                                                               
                                                                                                                                
MS.  GRIFFIN  replied  that  this would  depend  on  the  private                                                               
vendor.   The PIE is  required if the  contract is with  a vendor                                                               
that transports and  sells goods across state  lines.  Currently,                                                               
she said, 34 states are involved in this program.                                                                               
                                                                                                                                
4:39:55 PM                                                                                                                    
                                                                                                                                
MS.  GRIFFIN, in  response to  a question,  said that  currently,                                                               
there  are no  contracts  that transport  and  sell goods  across                                                               
state lines.                                                                                                                    
                                                                                                                                
CHAIR ANDERSON asked if any  prisoner can work, regardless of the                                                               
violation.                                                                                                                      
                                                                                                                                
MS.   GRIFFIN  replied   no.     She  said   that  the   inmate's                                                               
classification must  fit the  job for  which the  inmate applied.                                                               
These classifications  are:   minimum security,  medium security,                                                               
maximum security, and close security.                                                                                           
                                                                                                                                
REPRESENTATIVE LEDOUX, referring to page  3, Section 2, in regard                                                               
to the  commissioner consulting  with local  union organizations,                                                               
inquired as to  what would happen if  a job in question  is not a                                                               
union position.                                                                                                                 
                                                                                                                                
MS. GRIFFIN replied  that the types of jobs  the department would                                                               
participate in would be the types  of activities that can be done                                                               
within  the  confines  of   an  institution,  which  "drastically                                                               
limits" what can  be done.  She stated that  inmates would not be                                                               
sent outside of  the facility to work.  For  example, she said, a                                                               
vendor may wish to set up  an auto-body shop and teach inmates to                                                               
do auto-body work.                                                                                                              
                                                                                                                                
4:42:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX asked if auto-body work is a union trade.                                                                 
                                                                                                                                
MS.  GRIFFIN replied  that she  does  not believe  so, but  would                                                               
defer to the union representatives to answer this question.                                                                     
                                                                                                                                
REPRESENTATIVE  CRAWFORD  said  that  some  auto-body  shops  are                                                               
union; however, most are not.                                                                                                   
                                                                                                                                
REPRESENTATIVE  ROKEBERG,   referring  to  page  5,   Section  7,                                                               
subparagraph (b),  asked if  the prevailing  wage is  the current                                                               
standard.                                                                                                                       
                                                                                                                                
MS. GRIFFIN replied that the  prevailing wage only applies to the                                                               
PIE, and can be found on page 4, Section 6 of the bill.                                                                         
                                                                                                                                
4:45:55 PM                                                                                                                    
                                                                                                                                
MS. GRIFFIN,  in response  to a question,  clarified that  if the                                                               
department signed  a contract with  a vendor who wanted  to build                                                               
office furniture and sell it  across state lines, this would need                                                               
to be a PIE program in order for the state to participate.                                                                      
                                                                                                                                
MS.  GRIFFIN,  in  response  to questions,  stated  that  SB  310                                                               
contains retroactive clauses.  If  the legislation does not pass,                                                               
she said,  the department will  not be  able to continue  the PIE                                                               
program, in addition to having working inmates.                                                                                 
                                                                                                                                
REPRESENTATIVE KOTT inquired as  to the current statewide average                                                               
cost of confinement.                                                                                                            
                                                                                                                                
MS. GRIFFIN  replied that the  average is $107.42 per  day, which                                                               
includes all costs.   In response to an  additional question, she                                                               
clarified that if  the compensation is 50 percent or  more of the                                                               
minimum wage  established, the  commissioner may  make deductions                                                               
"up to the cost of care."                                                                                                       
                                                                                                                                
4:48:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROKEBERG expressed concern  regarding the types of                                                               
private contractors that would be considered.                                                                                   
                                                                                                                                
CHAIR ANDERSON  suggested that this  question be  answered before                                                               
the next committee of referral.                                                                                                 
                                                                                                                                
4:49:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KOTT  moved to  report  HCS  SB 310(STA)  out  of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  notes.   There being  no objection,  HCS SB  310(STA) was                                                               
reported from the House Labor and Commerce Standing Committee.                                                                  

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