House Bill No. 101
Introduced By bergsagel
By Request of the Department of Corrections
A Bill for an Act entitled: "An Act Increasing the Aggregate Value of a Construction Project That May be Performed by
Inmate Labor From $25,000 to $200,000 for each Project; EXEMPTING THE PROJECTS FROM THE PROVISIONS OF
TITLE 18, CHAPTER 2, FOR CONSTRUCTION, PUBLIC BIDDING, BONDING, AND CONTRACTS
COMPENSATION COVERAGE, OR AND EXEMPTING INMATES WHO PROVIDE LABOR ON THE PROJECTS
FROM THE LABOR AND WAGE REQUIREMENTS OF TITLE 18, CHAPTER 2, PART 4; ALLOWING THE USE OF
INMATE LABOR FOR CONSTRUCTION PROJECTS APPROVED BY THE LEGISLATURE AT THE MONTANA
STATE PRISON; amending section 53-1-301, MCA; and providing an immediate effective date and an applicability date."
Be it enacted by the Legislature of the State of Montana:
"53-1-301. Permitted institutional industries, powers of departments, and incentive pay to inmates. (1) Except as provided in subsection (4), the department of corrections or the department of public health and human services may:
(a) establish industries in institutions that will result in the production or manufacture of products and the rendering of services as may be needed by any department or agency of the state or any political subdivision of the state, by any agency of the federal government, by any other states or their political subdivisions, or by nonprofit organizations and that will assist in the rehabilitation of residents in institutions;
(b) obtain federal certification of specific prison industries programs in order to gain access to interstate markets for prison industries products;
(c) contract with private industry for the sale of goods or components manufactured or produced in shops under its jurisdiction and for the employment of inmates in federally certified prison industries programs;
(d) print catalogs describing goods manufactured or produced by institutions and distribute the catalogs;
(e) fix the sale price for goods produced or manufactured at institutions. Prices may not exceed prices existing in the open market for goods of comparable quality.
(f) require institutions to purchase needed goods from other institutions;
(g) provide for the repair and maintenance of property and equipment of institutions by residents of institutions;
(h) provide for construction projects, up to the aggregate sum of
$25,000 $200,000 per for each project, performed by
residents of institutions , except when the construction work is covered by a collective bargaining agreement;. THE
DEPARTMENT OF ADMINISTRATION MAY:
(I) EXEMPT PROJECTS AUTHORIZED BY THIS
SECTION SUBSECTION FROM THE PROVISIONS OF ANY
APPLICABLE MONTANA LAW TITLE 18, CHAPTER 2, RELATING TO CONSTRUCTION, PUBLIC BIDDING,
BONDING, OR CONTRACTS , WORKERS' COMPENSATION COVERAGE, OR; AND
(II) EXEMPT INMATES WHO PROVIDE LABOR FOR THOSE PROJECTS FROM THE LABOR AND WAGE REQUIREMENTS OF TITLE 18, CHAPTER 2, PART 4. INMATES PROVIDING LABOR FOR PROJECTS UNDER THIS SUBSECTION MUST BE PAID A RATE OF PAY AS PROVIDED IN SUBSECTION (2).
(i) provide for the repair and maintenance at an institution of furniture and equipment of any state agency;
(j) provide for the manufacture at an institution of motor vehicle license plates and other related articles;
(k) sell manufactured or agricultural products and livestock on the open market;
(l) provide for the manufacture at an institution of highway, road, and street marking signs for the use of the state or any of its political subdivisions, except when the manufacture of the signs is in violation of a collective bargaining contract;
(m) pay an inmate or resident of an institution from receipts from the sale of products produced or manufactured or services rendered in a program in which the inmate or resident is working;
(n) collect 15% of the net wages paid to an inmate employed in a federally certified prison industries program for deposit in the Montana crime victims compensation and assistance account established under 53-9-109; and
(o) collect from an inmate employed in a federally certified prison industries program charges for room and board consistent with charges established by the director for inmates assigned to prerelease centers.
(2) (a) Except as provided for in subsection (2)(b), payment for the performance of work may be based on the following criteria:
(i) knowledge and skill;
(ii) attitude toward authority;
(iii) physical effort;
(iv) responsibility for equipment and materials; and
(v) regard for safety of others.
(b) The maximum rate of pay must be determined by the appropriation established for each program, except that an inmate employed in a federally certified prison industries program must be paid at a rate not less than the rate paid for similar work in the locality where the inmate performs the work.
(3) Premiums for workers' compensation and occupational disease coverage must be paid by the prison industries program or by the department of corrections. If the department of corrections pays the premium, reimbursement for premium payments for workers' compensation and occupational disease coverage must be made to the department of corrections by the private company contracting with the federally certified prison industries program for services and products.
(4) Except as provided in subsection (5), furniture made in the prison may be purchased by state agencies in accordance with the procurement provisions under Title 18, chapter 4. All other prison-made furniture may be sold only through licensed wholesale or retail furniture outlets or through export firms for sale to international markets.
(5) Any state institution, facility, or program operated by the department of corrections may purchase prison-made furniture without complying with the procurement provisions under Title 18, chapter 4."
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(2) THE DEPARTMENT OF ADMINISTRATION SHALL PROVIDE FOR CONSTRUCTION OF THE PROJECTS AUTHORIZED BY THIS SECTION, WHICH ARE TO BE BUILT BY THE LOWEST RESPONSIBLE BIDDER, WITH CONTRACT SPECIFICATIONS TO ALLOW THE USE OF INMATE LABOR. THE PERCENTAGE OF INMATE LABOR MUST BE DETERMINED PRIOR TO THE ADVERTISING FOR BID OF THE PROJECTS THROUGH NEGOTIATIONS AMONG THE DEPARTMENT OF CORRECTIONS, THE DEPARTMENT OF ADMINISTRATION, REPRESENTATIVES OF CONSTRUCTION INDUSTRY EMPLOYERS, AND REPRESENTATIVES OF THE BUILDING TRADES.
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"(I) PROVIDE FOR CONSTRUCTION PROJECTS, UP TO THE AGGREGATE SUM OF $200,000 FOR EACH PROJECT, PERFORMED BY INMATES. THE DEPARTMENT OF ADMINISTRATION MAY:
(I) EXEMPT PROJECTS AUTHORIZED BY THIS SUBSECTION FROM THE PROVISIONS OF TITLE 18, CHAPTER 2, RELATING TO CONSTRUCTION, PUBLIC BIDDING, BONDING, OR CONTRACTS; AND
(II) EXEMPT INMATES WHO PROVIDE LABOR FOR THOSE PROJECTS FROM THE LABOR AND WAGE REQUIREMENTS OF TITLE 18, CHAPTER 2, PART 4. INMATES PROVIDING LABOR FOR PROJECTS UNDER THIS SUBSECTION MUST BE PAID A RATE OF PAY AS PROVIDED IN SUBSECTION (5)."
NEW SECTION. Section