9:04:56 AM SENATE BILL NO. 310 "An Act relating to the employment of prisoners; and providing for an effective date." This was the first hearing for this bill in the Senate Finance Committee. DARWIN PETERSON, Staff to Co-Chair Green, presented this bill sponsored by the Senate Finance Committee. He overviewed the sponsor statement, which reads as follows. The legislation that created the Alaska Correctional Industries program and commission was repealed on July 1, 2005. The primary purpose of SB 310 is to provide the necessary statutory authority so the Department of Corrections can continue providing inmate work and training programs without interruption. SB 310 is needed to provide for employment of prison inmates under AS 33.30. This employment program will be funded from Receipt Support Services funds. The bill provides the necessary statutory authority to participate in critical federal Prison Industry Enhancement (PIE) programs. It also grants the authority to actively participate and partner with private enterprise. These partnerships will provide realistic work experience and vocational training for prisoners under conditions similar to those that prevail in the private sector. SB 310 will allow the department to make a deduction from the offenders' wages to apply to the cost of confinement. These receipts will support the prison employment program. In addition, the prison employment program will allow inmates to work toward financial responsibility by taking deductions from wages to pay for child support, victim restitution, criminal fines, civil judgments, fees for utilities, as well as other obligations. SB 310 is a vital piece of legislation if we are to continue inmate work and vocational training programs in our correctional facilities. 9:07:15 AM Senator Dyson recalled several years prior that limited space acerbated a problem with classifying long-term prisoners and housing them in one location where investments in training them would be feasible. He asked if progress has been made to address this. 9:07:54 AM SHARLEEN GRIFFIN, Director, Division of Administrative Services, Department of Corrections, testified that the problem has been somewhat abated. She told of the women's sewing shop at the Hiland Mountain Correctional Center, and the recently opened men's sewing shop located at the Meadow Creek site. That facility has a large labor force despite the rotations. The inmates who are working and the production managers are able to train other inmates. The wood furniture shop is located at the Seward facility, which houses a long-term stable work force. The Lemon Creek Correctional Center houses the laundry industry and a sterile laundry program. No problems with the workforce or training exist at the Juneau location. 9:08:45 AM Senator Dyson was encouraged. He reminded that the Division of Parks and Outdoor Recreation and the Department of Transportation and Public Facilities considered utilizing prison labor for trail work and brush clearing. This was deemed unfeasible because the agencies would not know the number of qualified workers would be available. He asked if a program in which inmates participate as day laborers would be possible. 9:09:34 AM Ms. Griffin replied that such activities are possible, although notice would be required, as institutions are "very scheduled". Staff availability and classification of inmates suitable for travel outside the facility must be accommodated in advance. 9:10:03 AM Senator Dyson requested an update on these efforts. 9:10:19 AM Ms. Griffin assured she would report future progress to him. Over the past few years, inmates have done brush clearing work for the Alaska Railroad Corporation, as well as community work near the Point Mackenzie Correctional Farm. Offenders housed at the Lemon Creek Correctional Center have painted some of the Department's central administration offices. 9:10:46 AM Senator Dyson appreciated these efforts. 9:10:52 AM Co-Chair Green noted that the ability to provide day labor services would be dependant upon the level of confinement of inmates, whether minimum, medium or maximum security. 9:11:14 AM Senator Stedman asked the percentage of inmates who participated in a work training program who furthered employment in that field upon release from prison. He asked if the results of the programs are to occupy inmates' time or train them for jobs. 9:11:50 AM Ms. Griffin was unsure the percentages. However, participation in these programs teaches general responsibility and prepares inmates for work environments. It also provides a management tool. 9:12:56 AM Senator Stedman understood the general benefits. He relayed that as a college student in the state of Oregon, he recalled other students in the vocational technical programs, who were furthering their training received while they were in prison. The training they got while incarcerated assisted them in having a career, the ability to earn a good income and support their families if they decided to remain law abiding. 9:13:46 AM Co-Chair Green surmised this is the goal. She was unsure that "you can always inspire others with your own dream in these settings." Co-Chair Green understood that the legislature had incorrectly allowed a program to lapse. This legislation would allow funding appropriated to the program to be transferred to that program. 9:14:13 AM Ms. Griffin affirmed. She also stressed this legislation is necessary to allow continuation of the inmate employment program. The statutes that had lapsed included a provision that this program would have no obligation to workers' compensation insurance. Without this legislation, the program is questionable because the State would be required to provide workers' compensation insurance for inmate labor. Ms. Griffin continued that this bill would allow the Department to participate in prison industry enhancement programs certified through the Correctional Industries Association, which is supported by the Bureau of Justice Assistance. These programs allow the State to enter relationships with private businesses to sell products across state lines. They are governed by several requirements to ensure against unfair competition with private vendors; that the State pays the prevailing wage for those jobs, that studies are done to determine the impact of these industries; and allowances for the cost of care to allow the offender to help support the cost of the program. 9:15:52 AM DON ETHERIDGE, Alaska State AFL-CIO, testified in support of the prison industry program. However, he was concerned with the provision of this bill making one person the determiner of the minimal effects on the current workforce. Incorrect decisions could put people out of work. He supported the inmate work program and has hired inmates of the halfway house as day laborers. 9:17:11 AM Co-Chair Green asked if other statutes address the competition issue. 9:17:21 AM Mr. Etheridge was unsure. 9:17:25 AM Ms. Griffin informed that the Correctional Industries Association, which administers the Prison Industry Enhancement Act for the federal government, has mandatory criteria. One requires that a prison industry program could not impact labor unions or existing workers. 9:18:00 AM Co-Chair Green requested a copy of those requirements [copy on file]. 9:18:11 AM Mr. Etheridge was not aware of this criterion. He pointed out that prison industry has replaced union labor in brush cutting. 9:18:46 AM Co-Chair Green surmised that union workers could return to brush cutting activities, as inmate labor would be reduced for this task. 9:18:59 AM Mr. Etheridge responded that at-risk youth groups are undertaking brush-cutting projects across the state. The labor source for this activity is not fair competition. 9:19:23 AM Senator Stedman noted the legislative appropriations for large capital projects are increasing the needs for workers. He asked the labor pool available for these new construction projects versus smaller projects, including brush cutting and license plate manufacturing. He asked if a worker shortage exists. 9:20:16 AM Mr. Etheridge replied that some fields are experiencing a worker shortage. The unions are making significant efforts statewide in training more workers through apprenticeship programs in all fields of labor. 9:21:19 AM Senator Stedman commented on the difficulty of the issue. Incarcerated inmates need to be occupied and need job training. Also, workers must have employment. 9:22:03 AM Mr. Etheridge agreed. The union's concern is the use of workers earning minimum wage to replace other workers who would be out of a good job. This could result in the displaced workers being incarcerated when they are out of work and "do something stupid" to try to pay their bills. 9:22:56 AM Co-Chair Wilken offered a motion to report the bill from Committee with individual recommendations and new fiscal notes. There was no objection and SB 310 MOVED from Committee with a zero fiscal note dated 3/24/06 from the Department of Labor and Workforce Development and a zero fiscal note dated 3/24/06 from the Department of Corrections.