Private Sector/Prison Industry Certification Program

PURPOSE: The Private Sector/Prison Industry Enhancement Certification Program allows for contracts that produce income so inmates can make—a contribution to society, their own cost, victims of crime, and provides purposeful work for inmates, thereby reducing prison tensions, increasing job skills and providing opportunity for inmate rehabilitation. (1) To expand inmate employment opportunities, the department will seek to enter into a joint employment venture(s) with the private sector. These ventures can only be accomplished through approval by the Private Sector/Prison Industry Enhancement Certification Program, which is administered through the Federal Bureau of Justice Assistance. This procedure will encompass all administrative criteria for participation in that program. (A) Authority to Contract with Private Sector. Subject to provisions of section 217.090, RSMo, the department director has the authority to determine whether certain governmental, private or not-for-profit activities could be conducted on the grounds of an institution while being compatible with the services of that facility. (B) Lease of Building/Land. 1. Subject to provisions of section 217.090, RSMo, the director may lease space and/or one (1) or more buildings or portions of buildings on the grounds of any correctional institution, together with the real estate needed for reasonable access to and egress from the leased premises, to a private individual, corporation, partnership or other lawful entity for the purpose of establishing and operating a business enterprise. 2. The term of the lease is to be determined by the director with the approval of the Missouri Correctional Industries Advisory Board and the Joint Committee on Correctional Institutions and Problems. The enterprise(s) at all times will observe the practices and procedures regarding security as the lease may specify or as the facility superintendent may temporarily stipulate during periods of emergency. The enterprise shall be deemed a private enterprise subject to all federal and state laws governing the operation of similar private business enterprises, as specified by the authorized contract. (C) Employment of Inmates. 1. Upon the approval of the director, any lessee operating this enterprise may employ and discharge from employment selected inmates of the correctional institution where the enterprise is operated or from other institutions in close proximity. 2. Inmate participation in these operations is strictly voluntary. Inmates assigned to an enterprise are subject to all departmental and divisional rules in addition to rules promulgated by the authorized contractor. Inmate workers will agree in advance to wage deductions and all other financial arrangements. 3. Inmates employed in these operations will be covered by Workers’ Compensation insurance, specified in the contract as a responsibility of the authorized contractor. (D) Wages. 1. The department director will obtain written assurances from the Missouri Department of Labor and Industrial Relations that inmate worker compensation plans, including wages, bonus and piece work rates are comparable to wages paid for work of a similar nature in the locality in which the work is performed. In the absence of work of a similar nature, inmate compensation from wages or piece rates may not be less than the federal minimum wage. 2. The department director will obtain written assurances from the Missouri Department of Labor and Industrial Relations which stipulate that paid inmate employment will not result in displacement of employed workers, be applied in skills, crafts or trades in which there is a surplus of available gainful labor in the locality or impair existing contracts for services. (E) Deduction from Wages. 1. Subject to the provisions of section 217.255, RSMo, the department has the authority to pay into the Crime Victims Compensation Fund and the fund has the authority to accept deductions from an inmate’s compensation. Inmates assigned to an enterprise for employment purposes shall be required to pay a percentage of his/her wages as established by the department director of not less than five percent (5%) nor more than twenty percent (20%) of gross wages to the Crime Victims Compensation Fund, section 595.045, RSMo. 2. Subject to the provisions of section 217.260(3), RSMo, as provided by division rule, upon consent of the inmate, the director may permit inmate earnings to be used for the support of the inmate’s family or other rightful dependents. The director will determine reasonable deductions from wages to include room and board; federal, state and Social Security taxes; and family support. All deductions must not total more than eighty percent (80%) of gross wages. Provisions of the Fair Labor Standards Act shall apply to contractual inmate workers. (F) Consultation with Missouri Correctional Industries Advisory Board subject to section 217.550, RSMo, consultation with representatives of the labor unions and the private sector will be accomplished through a review and approval of the proposed operations with the Missouri Correctional Industries Advisory Board. AUTHORITY: sections 217.040, 217.090, 217.550 and 595.045, RSMo 1986.* Original rule filed Sept. 23, 1988, effective Jan. 13, 1989. *Original authority: 217.040, RSMo 1982; 217.090, RSMo 1982; 217.550, RSMo 1982; and 595.045, RSMo 1981, amended 1982, 1984, 1985, 1986, 1988.