HB 402: "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 HOUSE BILL NO. 402 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.