Senate Bill No. 467

(By Senators Love and Schoonover)

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[Introduced February 11, 1998; referred to the Committee on Government Organization; and then to the Committee on Finance.]
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A BILL to amend and reenact section one, article three, chapter five-a of the code of West Virginia, one thousand nine hundred thirty-one, as amended; and to amend and reenact article five-b, chapter twenty-eight of said code, all relating to enacting the "Prison Industries Act of 1998"; modernizing the provisions of the "Prison-Made Goods Act of 1939"; updating certain terms; and providing for enhanced ability of prison industries programs to be competitive by eliminating requirement that purchases of raw materials, supplies, etc. be made only through the division of purchasing.

Be it enacted by the Legislature of West Virginia:
That section one, article three, chapter five-a of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted; and that article five-b, chapter twenty-eight of said code be amended and reenacted, all to read as follows:
CHAPTER 5A. DEPARTMENT OF ADMINISTRATION.

ARTICLE 3. PURCHASING DIVISION.

§5A-3-1. Division created; purpose; director; applicability of article; continuation.
(a) There is hereby created the purchasing division of the department of administration for the purpose of establishing centralized offices to provide purchasing, travel and leasing services to the various state agencies.
(b) No person shall may be appointed director of the purchasing division unless that person is, at the time of appointment, a graduate of an accredited college or university and shall have who has spent a minimum of ten of the fifteen years immediately preceding his or her appointment employed in an executive capacity in purchasing for any unit of government or for any business, commercial or industrial enterprise.
(c) The provisions of this article shall apply to all of the spending units of state government, except as is otherwise provided by this article or by law: Provided, That the provisions of this article shall do not apply to: (i) The legislative branch, unless otherwise provided by law, or the Legislature or either house thereof requests the director to render specific services under the provisions of this chapter; nor to (ii) purchases of stock made by the alcohol beverage control commissioner; nor to (iii) purchases of textbooks for the state board of education; and (iv) purchases of goods or materials to be used in the production or manufacture of prison- made goods, pursuant to article five-b, chapter twenty-eight of this code.
(d) Pursuant to the provisions of article ten, chapter four of this code, the purchasing division within the department of administration shall continue to exist until the first day of July, one thousand nine hundred ninety-eight.
CHAPTER 28. STATE CORRECTIONAL AND PENAL INSTITUTIONS.

ARTICLE 5B. PRISON INDUSTRIES ACT.

§28-5B-1. Intent of article.

Whereas, the means now provided for the employment of convict inmate labor are inadequate to furnish a sufficient number of convicts inmates with employment, it is hereby declared to be the intent of this article:
(a) To further provide more adequate, regular and suitable employment for the convicts inmates of this state, consistent with proper penal correctional purposes;
(b) To further utilize the labor of convicts inmates for self-maintenance and for reimbursing this state for expenses incurred by reason of their crimes and imprisonment;
(c) To effect the requisitioning and disbursement of prison prison-made products directly through established state authorities with no possibility of private profits therefrom.
§28-5B-2. Citation of article.

This article may be cited as the "Prison-Made Goods Prison Industries Act of 1939 1998."
§28-5B-3. Establishment of industries at correctional facilities; purpose and extent.
The state commissioner of public institutions the division of corrections is hereby authorized to purchase in the manner provided by law, equipment, raw materials and supplies and to engage the supervisory personnel necessary to establish and maintain for this state at the penitentiary its correctional facilities or any penal farm or institution now or hereafter under control of this commissioner, industries for the utilization of services of convicts inmates in the manufacture or production of such articles or products as that may be needed for the construction, operation, maintenance or use of any office, department, institution or agency supported, in whole or in part, by this state and the political subdivisions thereof.
§28-5B-4. Purchase of prison-made goods by state agencies and political subdivisions.
(a) On and after the effective date of this article, as amended in the regular session of the Legislature in the year one thousand nine hundred ninety-eight, all offices, departments, institutions and agencies of this state which are supported, in whole or in part, by this state shall purchase, and all political subdivisions of this state may purchase from the state commissioner of public institutions all of the articles or products required by such offices, departments, institutions, agencies or political subdivisions of this state, that they require from the commissioner of the division of corrections if those articles or products are produced or manufactured by the state commissioner of public institutions by convict inmate labor at the state's correctional facilities, as provided for by this article. and No such article or product shall be purchased by any such state office, department, institution or agency, may purchase any article or product that is produced by inmate labor at any of this state's correctional facilities from any other source, unless specifically excepted from the provisions of this section as hereinafter provided by this article or otherwise by law
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(b) All purchases of inmate-produced articles or products by state offices, departments, institutions, agencies and political subdivisions shall be made through the department of purchases division of purchasing, upon requisition by the proper authority of the office, department, institution, agency or political subdivision of this state requiring such articles or products.
§28-5B-5. Exceptions as to mandatory purchase requirement.

Exceptions from the operation of the mandatory purchase provisions of section four hereof of this article may be made in any case where, in the majority opinion of the state commissioner of public institutions, the state director of purchases, and the director of the budget commissioner of corrections, the director of purchasing and the secretary of the department of administration, or their designees, or a majority of them, who are hereby constituted a board for such purposes of this section, the article or articles or product or products so produced or manufactured by inmate labor does or do not meet the reasonable requirements of or for such offices, departments, institutions, agencies or, in any case, where the requisition made cannot be reasonably complied with on account of an insufficient supply of the articles or products required, or otherwise. the requesting state office, department, institution, agency or political subdivision or where the requisition cannot be filled because of insufficient supply or other reason. No such state office, department, institution or agency shall be allowed to may evade the intent and meaning of this section by requesting slight variations from standards adopted by the state commissioner of public institutions, commissioner of corrections, when the articles or products produced or manufactured by the commissioner, in accordance with the commissioner's standards, are reasonably adapted to the actual needs of such the office, department, institution or agency.
§28-5B-6. Auditor bound by voucher or warrant; intentional violation of article; penalty.
No voucher, certificate or warrant issued on the state auditor by any such state office, department, institution or agency shall may be questioned by him the auditor or by the state treasurer on the grounds that this article has not been complied with by such the office, department, institution or agency has failed to comply with the provisions of this article, but if intentional violation of this article by any such a state office, department, institution or agency continues to intentionally violate the provisions of this article, after notice from the governor to desist, such action shall constitute a constitutes malfeasance in office and shall subject the person or persons responsible for this the violation are subject to suspension or removal from office.
§28-5B-7. Catalogues of articles and products made and produced; estimates of needs by departments, etc.
The state commissioner of public institutions commissioner of corrections shall: (i) Cause to be prepared, annually, at such times as he may determine he or she determines, catalogues containing the a description of all articles and products manufactured or produced by the commissioner pursuant to the provisions of this article; (ii) send copies of which this catalogue shall be sent by him to all offices, departments, institutions and agencies of this state; and made (iii) make the same accessible to all political subdivisions of this state. referred to in the preceding sections. At least thirty days before the
commencement beginning of each fiscal year, the proper official of each such state office, department, institution or agency when required by the state commissioner of public institutions shall report to the state commissioner of public institutions estimates for such fiscal year of the kind and amount of articles and products reasonably required for such ensuing year shall provide estimates to the commissioner of corrections of the kind and amount of articles and products that the office, department, institution or agency may reasonably require in the ensuing fiscal year, referring in such estimates with reference to the catalogue issued by the state commissioner of public institutions insofar as the articles and products indicated required are included in this catalogue.
§28-5B-8. Order of distribution of articles and products.

The articles or products manufactured or produced by convict inmate labor in accordance with the provisions of this article shall be devoted first to fulfilling the requirements of the offices, departments, institutions and agencies of this state which are supported, in whole or in part, by this state, and, secondly, to supply the political subdivisions of this state. with such articles and products.
§28-5B-9. Commissioner of corrections to fix prices.

The state commissioner of public institutions commissioner of corrections shall fix and determine the prices at which all articles or products manufactured or produced by inmate labor shall be are furnished, which prices shall be uniform and nondiscriminating to all, and shall be as near the usual market price for such those articles or products as may be is practicable.
§28-5B-10. Annual statements by wardens of correctional facilities and directors of prison industries programs.
The warden of the penitentiary each state correctional facility and the manager or authorities by whatever name known having charge of the penal institutions of this state director of any prison industries program at such correctional facility shall annually make a full detailed statement of all materials, machinery or other property procured, and the cost thereof, and of the expenditures made during the last preceding year for manufacturing purposes, together with a statement of all materials then on hand to be manufactured, or in process of manufacture, or manufactured, and all machinery, fixtures or other appurtenances for the dedicated to the purpose of carrying on the inmate labor of the convicts and the earnings realized therefrom during the last preceding year, as the proceeds of the labor of the convicts at the penitentiary of such penal institutions of this state, which statement shall be verified by the oath of the warden or such manager or authorities having charge of such penal institutions to be just and true, under oath and shall be by him or them forwarded to the state commissioner of public institutions commissioner of corrections within thirty days after the end of such last preceding year.
§28-5B-11. Quarterly estimate of needs for prison industries programs.
Such warden, or manager or authorities having charge of a penal institution of this state The warden or director of the prison industries program at each state correctional facility shall quarterly make an estimate and detailed statement of all materials, machinery, fixtures, tools or other appurtenances or accommodations, and the cost thereof, which will in his, her or their judgment be necessary for carrying on the activities authorized by this article at such penal institution that correctional facility for the next ensuing quarter, or which in his, her or their judgment should be contracted for during such the ensuing quarter, which estimate shall be forwarded to the state commissioner of public institutions for his commissioner of corrections for consideration and proper action relative thereto, at least ten days before the beginning of such that ensuing quarter.
§28-5B-12. Commissioner of corrections empowered to implement article; authority to propose rules for promulgation.
The state commissioner of public institutions shall have power and authority to prepare and promulgate rules and regulations The commissioner of the division of corrections has those powers that are necessary to implement the provisions of this article. He or she shall propose legislative rules for promulgation which are necessary to give effect to implement the provisions of this article with respect to matters of and to provide for the administration and procedure respecting the same necessary for such implementation. To this end, the commissioner is authorized to cause to be purchased and to develop the method for purchasing raw materials, supplies, services and equipment necessary for the production and timely delivery of articles and products produced by inmate labor. The commissioner shall propose by rule policies and procedures to ensure that purchases made for the benefit of prison industries programs are, to the extent practicable, at the lowest possible price while at the same time ensuring quality of material and timely delivery thereof. The commissioner may purchase supplies, services and equipment for prison industries through the division of purchasing, and is encouraged to do so under circumstances which are advantageous for the timely delivery of low-cost, high-quality products; but the commissioner is not required to make such purchases through the division of purchasing nor to comply with rules of that division in making purchases for the benefit of prison industries programs.
§28-5B-13. Appropriation for buildings, equipment, etc.; self-liquidating contracts.
In order to carry out the provisions of this article there is hereby appropriated out of the moneys in the state fund, general revenue, not otherwise appropriated, the sum of fifty thousand dollars, and the commissioner of the division of corrections is authorized to expend such moneys from such this appropriation as may be necessary to erect buildings, to purchase equipment, to procure tools, supplies and materials, to purchase, install or replace equipment, to employ personnel and otherwise to defray the necessary expenses incident to the employment of convicts inmates as herein provided in this article, and further to aid in the above these purposes, the commissioner of the division of corrections is empowered to enter into contracts and agreements with any person or persons upon a self-liquidating basis respecting the acquisition and purchase of any such equipment, tools, supplies and materials, to the end that the same may be paid for over a period of not exceeding three years; Provided, That and the aggregate amount of such these purchases or acquisitions may not to exceed one million dollars: Provided, however, That such amounts to be these amounts are payable solely out of the revenues derived from the activities authorized by this article. Nothing in this section shall be so may be construed or interpreted as to authorize or permit authorizing or permitting the incurring of a state debt of any kind or nature as the type contemplated prohibited by the constitution of this state. in relation to such debt
§28-5B-14. Prison industries account.

All moneys collected by the commissioner of the division of corrections from the sale or disposition of articles and products manufactured or produced by convict inmate labor in accordance with the provisions of this article shall be forthwith deposited with the state treasurer to be there kept and maintained as a special revolving account designated the "prison industries account" and such moneys so collected and deposited shall be used solely for the purchase of manufacturing supplies, equipment, machinery and materials used to carry out the purposes of this article, as well as for the payment of the necessary personnel in charge thereof and to otherwise defray the necessary expenses incident thereto, all of which are under the direction and subject to the approval of the commissioner: Provided, That the "prison industries account" shall may never be maintained in excess of the amount necessary to efficiently and properly carry out the intentions of this article, and in no event may the "prison industries account" be maintained in excess of the sum of one million dollars. When, in the opinion of the governor, the "prison industries account" has reached a sum in excess of the requirements of this article, the excess shall be transferred by the commissioner of the division of corrections to the state fund, general revenue, and if the governor does not make such determination, any excess above one million dollars shall be transferred to the state fund, general revenue, by the commissioner of the division of corrections at the end of each fiscal year.
§28-5B-15. Sale of prison-made goods on open market prohibited; penalty; exceptions.
(a) Subject to the provisions of subsections (b) and (c) of this section, it is unlawful to sell or offer for sale on the open market of this state any articles or products manufactured or produced, wholly or in part, in this or any other state, by convicts inmates or prisoners of this state, or any other state, except convicts inmates or prisoners on parole or probation. Any person violating the provisions of this section is guilty of a misdemeanor and, upon conviction thereof, shall be punished by is subject to a fine of not less than two hundred dollars nor more than five thousand dollars, or by imprisonment in
jail confinement in a regional or county jail for not less than three months nor more than one year, or by both fine and imprisonment. Each such sale or offer for sale shall constitute to sell constitutes a separate offense under this section.
(b) Notwithstanding the provisions of subsection (a) of this section, any articles or products manufactured or produced, wholly or in part, by inmates of West Virginia penal and correctional institutions and facilities which are designed and intended to be used solely by blind and handicapped persons, including, but not limited to, braille books and reading materials, may be sold or offered for sale or distributed on the open market by the department division of corrections or other state department or agency.
(c) Notwithstanding the provisions of subsection (a) of this section, arts and crafts produced by inmates may be sold to the general public by the department division of corrections or by such other agencies or departments of state government as that the commissioner of corrections may designate. The arts and crafts shall may be sold only on a consignment basis so that inmates whose arts and crafts products are sold shall receive payment for the products. The payments shall be deposited in such accounts or funds and managed in such a manner as provided by section six, article five of this chapter: Provided, That where the state department division of corrections or any other agency or department of state government provides any materials used in the production of an arts and crafts product, the fair market value of such materials may be deducted from the account of the individual inmate after the sale of such product.
(d) For purposes of this section, "arts and crafts" means articles produced individually by artistic or craft skill such as, but not limited to, painting, sculpture, pottery and jewelry.
§28-5B-16. Penalties.

Any person who wilfully violates any of the provisions of this article, other than except for section fifteen, hereof, shall be is guilty of a misdemeanor and, upon conviction, shall be confined in a regional or county jail for not less than ten days nor more than one year, or fined not less than ten dollars nor more than five hundred dollars, or both, in the discretion of the court.
§28-5B-17. Provisions of act severable.
If any section, subsection, provision or sentence of this act or the application thereof to any person, or any circumstance, be is held invalid, the remainder of the act and the application of any such section, subsection, provision or sentence to other persons or circumstances shall not be is not affected thereby.
§28-5B-18. Inconsistent acts repealed.

All acts and parts of acts inconsistent herewith with this article are hereby repealed; however, this article is to be considered as supplementary or additional in addition to other provisions of law now existing relative to the employment of convicts inmates.



NOTE: The purpose of this bill is to enact the "Prison Industries Act of 1998" by modernizing the provisions of the Prison-made Goods Act of 1939. It would increase Prison Industries' ability to be competitive by eliminating the requirement that raw materials and supplies be purchased through the Purchasing Division. It also would update certain terms and make stylistic changes.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.