1.1                          A bill for an act
  1.2             relating to crime prevention; requiring the 
  1.3             incorporation of a private, nonprofit corporation to 
  1.4             employ inmates in state correctional facilities in 
  1.5             industrial and commercial activities; directing the 
  1.6             governor to appoint the corporation's board of 
  1.7             directors; authorizing the board to employ certain 
  1.8             individuals; requiring five-year business plans to be 
  1.9             developed; specifying the content of the plans; 
  1.10            requiring notice be given to public entities of the 
  1.11            products available from prison industries; requiring 
  1.12            public entities to purchase from prison industries in 
  1.13            certain cases; appropriating money; amending Minnesota 
  1.14            Statutes 1995 Supplement, section 16B.181; proposing 
  1.15            coding for new law in Minnesota Statutes, chapter 241. 
  1.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.17     Section 1.  Minnesota Statutes 1995 Supplement, section 
  1.18  16B.181, is amended to read: 
  1.19     16B.181 [PURCHASES FROM CORRECTIONS INDUSTRIES.] 
  1.20     (a) The commissioner, in consultation with the commissioner 
  1.21  of corrections, shall prepare a list of products and services 
  1.22  that are available for purchase from department of corrections 
  1.23  industries.  After publication of the product and service list 
  1.24  by the commissioner, state agencies and institutions shall 
  1.25  purchase the listed products and services from department of 
  1.26  corrections industries if the products and services are 
  1.27  equivalent in price and quality to products and services 
  1.28  available from other sources unless the commissioner of 
  1.29  corrections certifies that the correctional institutions cannot 
  1.30  provide them at a price within five percent of the fair market 
  2.1   price for comparable level of quality and within a reasonable 
  2.2   delivery time.  In determining the fair market price, the 
  2.3   commissioner of administration shall use competitive bidding or 
  2.4   consider open market bid prices in previous years for similar 
  2.5   products and services, plus inflationary increases. 
  2.6      (b) The commissioner of administration shall ensure that 
  2.7   state agency specifications are not unduly restrictive as to 
  2.8   prevent corrections industries from providing products or 
  2.9   services that meet the needs of the purchasing department, 
  2.10  institution, or agency. 
  2.11     Subdivision 1.  [DEFINITIONS.] As used in this section: 
  2.12     (1) "public entity" or "public entities" include the state; 
  2.13  an office, agency, department, or institution of the state; the 
  2.14  metropolitan council; a metropolitan agency; the metropolitan 
  2.15  mosquito control district; the courts; a county; a statutory or 
  2.16  home-rule charter city; a town; a school district; a special 
  2.17  taxing district; and a college or university; and 
  2.18     (2) "items" include articles, products, supplies, and 
  2.19  services. 
  2.20     Subd. 2.  [PUBLIC ENTITIES; PURCHASES FROM CORRECTIONS 
  2.21  INDUSTRIES.] (a) The commissioner of corrections shall prepare 
  2.22  updated lists of the items available for purchase from 
  2.23  department of corrections industries and annually forward a copy 
  2.24  of the most recent list to all public entities within the 
  2.25  state.  The commissioner of administration, in consultation with 
  2.26  the commissioner of corrections, shall determine the fair market 
  2.27  price for listed items.  A public entity that is supported in 
  2.28  whole or in part with funds from the state treasury shall 
  2.29  purchase directly from correctional industries those items that 
  2.30  are comparable in price and quality to items available from 
  2.31  other vendors.  The price paid by public entities for 
  2.32  correctional industry items may not exceed the fair market price.
  2.33  The provisions relating to competitive bidding in section 16B.07 
  2.34  do not apply to purchases made under this section. 
  2.35     (b) The commissioner of administration shall develop an 
  2.36  M-contract to enable public entities to purchase items directly 
  3.1   from correctional industries. 
  3.2      (c) No public entity may evade the intent of this section 
  3.3   by adopting slight variations in specifications when Minnesota 
  3.4   correctional industry items meet the reasonable needs and 
  3.5   specifications of the public entity.  Any public bid request or 
  3.6   request for purchase generated by a public entity for items 
  3.7   available from correctional industries must include product 
  3.8   specifications and descriptions compatible with the 
  3.9   specifications and descriptions used by the commissioner of 
  3.10  corrections. 
  3.11     (d) As part of its ongoing audit process, the legislative 
  3.12  auditor is requested to ensure that state agencies are in 
  3.13  compliance with this section.  The state auditor shall ensure 
  3.14  that other public entities are in compliance. 
  3.15     (c) (e) The commissioners of administration and corrections 
  3.16  shall appoint a joint task force to explore additional methods 
  3.17  that support the philosophy of providing a substantial market 
  3.18  opportunity to correctional industries that maximizes inmate 
  3.19  work opportunities.  The task force shall develop a plan and 
  3.20  prepare a set of criteria with which to evaluate the 
  3.21  effectiveness of the recommendations and initiatives in the plan.
  3.22     Sec. 2.  [241.2705] [MINNPRIDE.] 
  3.23     Subdivision 1.  [MINNPRIDE ESTABLISHED.] A private council 
  3.24  named MinnPride may be established to evaluate the adequate, 
  3.25  regular and suitable employment, and vocational training to 
  3.26  inmates of state and local correctional facilities.  The council 
  3.27  shall evaluate industrial and commercial activities suitable to 
  3.28  the profitable employment, vocational training and development 
  3.29  of proper work habits of the inmates of state and local 
  3.30  correctional facilities. 
  3.31     Subd. 2.  [INCORPORATION; BOARD OF DIRECTORS, SELECTION AND 
  3.32  POWERS.] The council must have a 15-member board appointed by 
  3.33  the governor.  Members of the board shall be from the private 
  3.34  sector and have demonstrated experience in business or 
  3.35  industry.  However, no member of the board may be presently 
  3.36  associated with the department of corrections.  The board may 
  4.1   employ a director and other consultants, and other persons 
  4.2   deemed necessary by the board.  In addition to any money 
  4.3   received as a grant under section 4, MinnPride may seek 
  4.4   contributions from other sources. 
  4.5      Sec. 3.  [MINNCOR, MINNPRIDE; FIVE-YEAR BUSINESS PLAN 
  4.6   REQUIRED.] 
  4.7      Subdivision 1.  [PLAN REQUIRED.] MinnCor and MinnPride 
  4.8   shall develop five-year business plans for the operation of 
  4.9   prison industries in this state.  By February 1, 1997, the chief 
  4.10  executive officers of MinnCor and MinnPride shall report to the 
  4.11  governor and the majority and minority leaders of the senate and 
  4.12  house of representatives on the contents of its respective plans.
  4.13     Subd. 2.  [ACCESS TO INFORMATION.] In developing its 
  4.14  five-year plan, MinnPride shall have access to: 
  4.15     (1) all records kept by MinnCor in the course of its 
  4.16  business, including financial records; 
  4.17     (2) all correctional facilities; 
  4.18     (3) all noninmate employees of MinnCor; and 
  4.19     (4) all inmates employed by MinnCor. 
  4.20  MinnPride shall have the right to conduct private, confidential 
  4.21  interviews with all inmate and noninmate employees of MinnCor 
  4.22  who consent to be interviewed.  The commissioner of corrections 
  4.23  and the chief executive officer of MinnCor shall cooperate with 
  4.24  MinnPride to ensure that MinnPride has the access specified in 
  4.25  this subdivision.  If necessary, the chief executive officer of 
  4.26  MinnPride may bring a motion in district court to compel this 
  4.27  access. 
  4.28     Subd. 3.  [MINNPRIDE FIVE-YEAR BUSINESS PLAN.] (a) In 
  4.29  developing its five-year business plan, MinnPride shall assume 
  4.30  that it will be required to: 
  4.31     (1) employ at least the same number of inmates by the end 
  4.32  of its first year of operation as MinnCor employed on January 
  4.33  15, 1996; 
  4.34     (2) offer employment to noninmate MinnCor employees to fill 
  4.35  available positions at substantially the same salaries as the 
  4.36  employees were earning as of January 15, 1996; 
  5.1      (3) operate without any state subsidy, however, if it is 
  5.2   not possible to profitably operate the program with the 
  5.3   requirements contained in this subdivision, MinnPride shall 
  5.4   state the minimum amount of subsidy necessary to comply with 
  5.5   this section; 
  5.6      (4) provide adequate security at its own expense; and 
  5.7      (5) provide maintenance for leased facilities and equipment.
  5.8      (b) In developing its five-year business plan, MinnPride 
  5.9   also shall assume: 
  5.10     (1) that it will be able to lease all, or any percentage, 
  5.11  of the facilities and equipment used by MinnCor on January 15, 
  5.12  1996, to operate its business for $1 per year; 
  5.13     (2) that it may operate as a corporation deemed to be 
  5.14  primarily acting as an instrumentality of the state with 
  5.15  Minnesota Statutes, sections 3.732, 3.736, 3.738, and 3.739 
  5.16  applying to it; 
  5.17     (3) that it will be liable within the limitations provided 
  5.18  by applicable law for inmate injury due to MinnPride's 
  5.19  negligence; 
  5.20     (4) that members of the board of directors will not be 
  5.21  liable to any inmate for any injury sustained in an industry 
  5.22  program; and 
  5.23     (5) that inmates will not be considered employees of 
  5.24  MinnPride for any purpose. 
  5.25     (c) The plan must address the possibility of future capital 
  5.26  expansion and improvements of industry programs at state and 
  5.27  local correctional facilities.  Specifically, the plan must 
  5.28  address the need for additional equipment and buildings, and 
  5.29  improvements to existing equipment and buildings.  The plan may 
  5.30  assume that the state will finance these expenses, but will 
  5.31  require MinnPride to enter into leases to reimburse these 
  5.32  expenses at cost. 
  5.33     (d) The plan must describe the advantages and disadvantages 
  5.34  of a private corporation operating prison industries as opposed 
  5.35  to the department of corrections, specifically as relating to 
  5.36  purchases, sales, management, marketing, and personnel decisions.
  6.1      (e) The plan must describe the most feasible method and 
  6.2   timetable for transferring the assets and operations of MinnCor 
  6.3   to MinnPride if MinnPride were to assume control over prison 
  6.4   industries. 
  6.5      (f) If MinnPride is dissolved or otherwise ceases to 
  6.6   fulfill the purposes described in subdivision 1, any interest of 
  6.7   MinnPride in buildings, land, furnishings, fixtures, equipment, 
  6.8   and other chattels purchased or leased in connection with its 
  6.9   operation of industry programs shall automatically revert, 
  6.10  subject to valid security interests, to the department of 
  6.11  corrections. 
  6.12     Subd. 4.  [MINNPRIDE, MINNCOR; FIVE-YEAR PLANS.] At a 
  6.13  minimum, and in addition to the requirements applicable only to 
  6.14  MinnPride's plan contained in subdivision 3, both MinnPride and 
  6.15  MinnCor shall address in its respective five-year business plans:
  6.16     (1) methods to increase the number of inmate workers; 
  6.17     (2) methods to increase profits and expand markets, 
  6.18  including recommended changes in the state use law; 
  6.19     (3) proposed new product lines; 
  6.20     (4) methods to employ inmates who require lower security in 
  6.21  settings outside state and local correctional facilities; 
  6.22     (5) appropriate compensation for management, employees, and 
  6.23  inmates; 
  6.24     (6) methods to assist inmate employees in obtaining 
  6.25  employment upon the inmate's release from confinement; and 
  6.26     (7) methods to determine what effect employment in a prison 
  6.27  industry program has upon recidivism of inmates who have 
  6.28  participated in the program, including methods to track former 
  6.29  inmate employees to determine recidivism. 
  6.30     Sec. 4.  [APPROPRIATION.] 
  6.31     $....... is appropriated from the general fund to the 
  6.32  commissioner of finance for a grant to MinnPride to implement 
  6.33  section 2. 
  6.34     Sec. 5.  [EFFECTIVE DATE.] 
  6.35     Section 1 is effective August 1, 1996.  Sections 2 to 4 are 
  6.36  effective the day following final enactment.