SB-0632, As Passed House, September 30, 2007

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 632

     A bill to amend 1968 PA 15, entitled

"Correctional industries act,"

by amending section 6 (MCL 800.326), as amended by 1996 PA 537.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 6. (1) Correctional industries products may be sold,

exchanged, or purchased by institutions any of the following:

     (a) An institution of this or any other state or political

subdivision of this or any other state, the federal government or

agencies of the federal government, a foreign government or

agencies of a foreign government, or a private vendor that operates

the youth correctional facility, or any a correctional facility in

this state.

     (b) Any organization that is a tax exempt organization under

section 501(c)(3) of the internal revenue code.

     (c) Any private business or individual, if the products are

cut and sewn textiles, but only if the same or a comparable in

style product is not manufactured by a private business in this

state.

     (2) An agricultural product that is produced on a correctional

farm may be utilized within the correctional institutions or within

a youth correctional facility in this state notwithstanding its

operation by a private vendor or sold to an institution,

governmental agency, or organization described in subsection (1) or

sold for utilization in the food production facilities of the

department of corrections notwithstanding the operation of those

facilities by a private vendor. An agricultural product that is not

utilized or sold as provided in this subsection shall be made

available without charge to nonprofit charitable organizations or

to the family independence agency for use in food banks, bulk food

distributions, or similar charitable food distribution programs.

This subsection does not apply to an agricultural product that is

not in a form suitable for use in the manner prescribed in this

section, such as bulk grain, live cattle, and hogs, which may be

sold on the open market.

     (3) Except as provided in subsections (4) and (5), the labor

of inmates shall not be sold, hired, leased, loaned, contracted

for, or otherwise used for private or corporate profit or for any

purpose other than the construction, maintenance, or operation of

public works, ways, or property as directed by the governor. This

act does not prohibit the sale at retail of articles made by

inmates for the personal benefit of themselves or their dependents

or the payment to inmates for personal services rendered in the

correctional institutions, subject to regulations approved by the

department of corrections, or the use of inmate labor upon

agricultural land that has been rented or leased by the department

of corrections upon a sharecropping or other basis.

     (4) If more than 80% of a particular product sold in the

United States is manufactured outside the United States and none of

that product is manufactured in this state, or if a particular

service is not performed in this state, as determined by the

department of corrections in conjunction with the advisory council

for correctional industries, inmate labor may be used in the

manufacture of that product or the rendering of that service in a

private manufacturing or service enterprise established under

section 7a. A determination by the department of corrections under

this subsection shall be made at the time the individual or

business entity applies to the department for approval to produce

that product or render that service pursuant to section 7a.

     (5) Inmate labor may be used in the youth correctional

facility notwithstanding the operation of that facility by a

private vendor.

     Enacting section 1. This amendatory act does not take effect

unless all of the following bills of the 94th Legislature are

enacted into law:

     (a) House Bill No. 5194.

     (b) House Bill No. 5198.