SB-1484, As Passed House, December 2, 2010

SUBSTITUTE FOR

SENATE BILL NO. 1484

A bill to amend 1968 PA 15, entitled

"Correctional industries act,"

by amending sections 4 and 7 (MCL 800.324 and 800.327), as amended

by 1996 PA 537.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 4. (1) The department of corrections may do any of the

following:

(a) Construct, use, equip, and maintain buildings, machinery,

boilers, and equipment that may be necessary to provide for the

employment of inmate labor in the state correctional institutions

for the manufacture of goods, wares, and merchandise and the

operation of services.

Senate Bill No. 1484 as amended September 29, 2010

(b) Purchase new material to be used in the manufacture of

goods, wares, and merchandise, and the operation of services.

in the manner provided by law.

(d) Continue to use and maintain the buildings, machinery,

boilers, and equipment in the manufacture of goods, wares, and

merchandise in the manner in the operation on April 5, 1968 and use

the facilities in the operation of service programs.

(e) Recruit and employ agents and assistants through the

department of civil service as may be necessary to carry out the

purposes of this act and recommend to the department of civil

service classes and selection procedures that recognize the unique

needs of correctional industries in this state.

(f) Establish an advisory council for correctional industries

in this state, which shall include representatives of organized

labor, private industry, state government, and the general public.

(g) Enter into any agreements necessary for assigning inmates

to employment in private manufacturing or service enterprises under

section 7a.

(h) Establish a prison industry enhancement certification

program under 18 USC 1761(c) and enter into any agreements

necessary for assigning prisoners to employment in private

manufacturing or service enterprises permitted under the prison

industry enhancement certification program<<, including, but not

limited to, the manufacturing of caskets for the burial of indigent persons>>. The department may

purchase equipment, raw materials, supplies and other items

necessary for the manufacture or production of products or services

under the prison industry enhancement certification program and may

Senate Bill No. 1484 (S-1) as amended December 2, 2010

contract with a private individual, corporation, partnership, or

association for the manufacture of products and services under the

prison industry enhancement certification program and may sell or

exchange those products and goods as provided under section

6(1)(d). Prisoners participating in the prison industry enhancement

certification program shall receive, in connection with any work

performed, wages at a rate which is not less than that paid for

work of a similar nature in the locality in which the work was

performed, except that such wages maybe subject to deductions which

shall not, in the aggregate, exceed 80% of gross wages, and shall

be limited as follows:

(i) Taxes, including federal, state, and local taxes.

(ii) Reasonable charges for room and board, as determined by

regulations issued by the director of the department.

(iii) Allocations for support of family pursuant to state

statute, court order, or agreement by the offender.

(iv) Contributions to any fund established by law to compensate

the victims of crime in an amount that is not more than 20% but not

less than 5% of gross wages.

(i) Accept from a natural person, sole proprietorship,

partnership, corporation, association, or legal entity, [

] items that are labeled as obsolete to

disassemble for sale as scrap or for disposal. The department may

charge a fee for accepting items described in this subdivision and

may refuse to accept any items. [Other than for an institution,

governmental agency, or tax-exempt organization described in section 6,] Materials recovered after

disassembly or demanufacturing shall not be used in any form or for

any purpose other than sale for scrap value or disposal. Any

proceeds from a sale for scrap value shall be credited to the

correctional industries revolving fund.

(2) Prisoners participating in the prison industry enhancement

certification program under subsection (1)(h) shall not be deprived

of the right to participate in benefits made available by the

federal or state government to other individuals on the basis of

their employment. However, those prisoners shall not be qualified

to receive any payments for unemployment compensation while

incarcerated. Prisoners participating in the prison industry

enhancement certification program shall participate in that

employment voluntarily and must have agreed in advance to the

specific deductions made from gross wages required under subsection

(1)(h) and all other financial arrangements as a result of

participation in that employment. The use of inmate labor shall not

result in the displacement of employed workers within the local

region in which work of the same or comparable nature is being

performed.

Sec. 7. The department of corrections shall provide as fully

as practicable for the employment of inmates in tasks consistent

with the penal and rehabilitative purposes of their imprisonment

and with the public economy. The types of employment shall be as

follows:

(a) Routine maintenance and operation of correctional

institutions.

(b) Educational and rehabilitation activities, whether formal

or through productive or socialized activities, determined on the

basis of individual needs and educability.

the institution farms, or other land rented or leased by the

department of corrections, factories, shops, or other available

facilities for the production and distribution of correctional

industries products and services.

(d) Labor assignments on state public works, ways, or

properties when and as requisitioned by the governor or on county,

township, or district roads when requested by the county board of

commissioners pursuant to section 1 of ~~Act No. 181 of the Public~~

~~Acts of 1911, being section 800.101 of the Michigan Compiled Laws~~

1911 PA 181, MCL 800.101.

(e) Labor assignments in private manufacturing or service

enterprises established under section 7a.

(f) Labor assignments in connection with manufacture of

products under section 4(1)(h) and in connection with the

disassembly and disposal of items and scrap material under section

4(1)(i).

Enacting section 1. This amendatory act does not take effect

unless Senate Bill No. 1485 of the 95th Legislature is enacted into

law.