ENGROSSED
H. B. 4606

(By Mr. Speaker, Mr. Kiss, and Delegate Trump)
[By Request of the Executive]
[Introduced February 22, 2000; referred to the
Committee on Government Organization then Finance.]

A BILL to amend and reenact sections thirteen, fourteen and fifteen, article five-b, chapter twenty-eight of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating to prison-made goods; increasing the aggregate amount of purchases or acquisitions by the division of corrections; authorizing the sale of prison-made goods to government offices in other states; allowing for payment of salaries from the prison industries account; increasing the amount which may be maintained in the prison industries account; distributing the profit from specific prison-made goods, and requiring that a certain amount of the profit from waste tire products be directed to the division of corrections facilities rather than the crime victims' compensation fund .

That sections thirteen, fourteen and fifteen, article five-b, chapter twenty-eight of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenact to read as follows:

ARTICLE 5B. PRISON-MADE GOODS.

§28-5B-13. Authority to expend appropriation for buildings and equipment and to sell products.

(a) 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 legislative 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, and further to aid in the above 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, in accordance with other provisions of this code and rules of the department of administration. and the The aggregate amount of such purchases or acquisitions may not to exceed one five million dollars, such amounts to be payable solely out of the revenues derived from the activities authorized by this article. Nothing in this section shall may be so construed or interpreted as to authorize or permit the incurring of a state debt of any kind or nature as contemplated by the constitution of this state in relation to such debt.
(b) The commissioner of corrections is authorized to sell articles or products manufactured or produced at correctional facilities to government offices of this state and its political subdivisions and to government offices of other states and their political subdivisions.

§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 labor at correctional facilities 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 revenue fund, appropriated by the Legislature, designated the "prison industries account" and such the 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 the division of corrections 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 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 five 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 five 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 Except as provided for in section thirteen of this article and subsections (b) and (c), (d) and (e) 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 or prisoners of this state, or any other state, except convicts or prisoners on parole or probation. This provision does not apply to the sale of products made with waste tires: Provided, That any use of waste tires shall comply with applicable laws and rules of the division of environmental protection: Provided, however, That any products made by inmates from waste tires and sold on the open market must be competitively priced with privately produced goods of the same nature and may not be sold at a loss: Provided further, That any profits earned from the sale of products made by inmates from waste tires shall be distributed as follows: First, to the prison industries fund to reimburse all moneys expended in the collection of waste tires and the production of waste tire products, including a reasonable amount to be set aside for the periodic replacement of outdated, obsolete or inoperable machinery or equipment used in collection or production, and second, any moneys remaining shall be divided equally between the prison industries fund and the crime victims compensation fund established by the provisions of section two, article two-a, chapter fourteen of this code.
(b) Any person violating the provisions of this section is guilty of a misdemeanor and, upon conviction, shall be punished by a fine of not less than two hundred dollars nor more than five thousand dollars, or by imprisonment in jail not less than three months nor more than one year, or by both fine and imprisonment. Each sale or offer for sale shall constitute a separate offense under this section.
(c) 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 of corrections or other state department or agency.
(d) 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 of corrections or by other agencies or departments of state government as the commissioner of corrections may designate. The arts and crafts shall 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 the accounts or funds and managed in a manner as provided by section six, article five of this chapter: Provided, That where the state department 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 the materials may be deducted from the account of the individual inmate after the sale of the product. For purposes of this subsection, "arts and crafts" means articles produced individually by artistic or craft skill including, but not limited to, painting, sculpture, pottery and jewelry.
(e) 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.
Notwithstanding the provisions of subsection (a) of this section, any article or product manufactured or produced, wholly or in part, by prisoners of West Virginia correctional institutions and facilities that are made with waste tires may be sold or offered for sale or distribution on the open market by the division of corrections. The use of waste tires in this manner shall comply with applicable laws and rules of the division of environmental protection. Any products made pursuant to this provision and sold on the open market must be competitively priced with privately produced goods of the same nature and may not be sold at a loss. Any profits earned from the sale of products produced from waste tires shall be distributed as follows: First, to the prison industries fund to reimburse all moneys expended in the collection of waste tires and the production of waste tire products, including a reasonable amount to be set aside for the periodic replacement of outdated, obsolete or inoperable machinery or equipment used in collection or production, and second, any remaining moneys shall be divided equally between the (1) prison industries fund, and (2) the department of corrections: Provided, That the department use any moneys received pursuant to this program for the operation of correctional facilities.