Senate Bill 1946c1

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    Florida Senate - 2000                           CS for SB 1946

    By the Committee on Criminal Justice and Senator Silver





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  1                      A bill to be entitled

  2         An act relating to correctional work programs;

  3         amending s. 946.502, F.S., relating to

  4         legislative intent with respect to the

  5         operation of correctional work programs;

  6         conforming references and deleting obsolete

  7         provisions; amending s. 946.5025, F.S.;

  8         conforming a cross-reference; amending s.

  9         946.5026, F.S.; clarifying the application of

10         sovereign immunity with respect to the

11         corporation that operates correctional work

12         programs; amending s. 946.503, F.S.; redefining

13         the term "corporation" for purposes of part II

14         of ch. 946, F.S.; amending s. 946.504, F.S.;

15         revising requirements for the lease of

16         facilities by the corporation; deleting a

17         requirement that a lease be approved by the

18         Attorney General; deleting certain limitations

19         on the transfer of operating loses and

20         requirements for employing personnel of the

21         Department of Corrections; amending s. 946.506,

22         F.S., relating to modification or termination

23         of correctional programs; conforming

24         references; amending s. 946.509, F.S.;

25         providing for insurance of property leased by

26         the corporation; amending s. 946.511, F.S.;

27         authorizing revenue-generating contracts

28         between the corporation and private-sector

29         businesses; amending s. 946.514, F.S., relating

30         to civil rights of inmates; conforming

31         references; amending s. 946.515, F.S.;

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  1         conforming a reference to clarify the

  2         application of requirements for the use of

  3         goods and services produced in correctional

  4         work programs; amending s. 946.516, F.S.;

  5         revising the date of the annual report

  6         submitted to the Governor and Legislature by

  7         the corporation; amending s. 946.518, F.S.,

  8         relating to the sale of goods made by

  9         prisoners; conforming references; amending s.

10         946.520, F.S.; providing for the assignment of

11         inmates to the private-sector business

12         authorized to operate correctional work

13         programs; amending s. 957.04, F.S.; conforming

14         a cross-reference; providing an effective date.

15

16  Be It Enacted by the Legislature of the State of Florida:

17

18         Section 1.  Subsections (2), (3), and (4) of section

19  946.502, Florida Statutes, are amended to read:

20         946.502  Legislative intent with respect to operation

21  of correctional work programs.--

22         (2)  It is further the intent of the Legislature that,

23  once one such nonprofit corporation is organized, no other

24  nonprofit corporation be organized for the purpose of carrying

25  out this part ss. 946.502-946.518.  In carrying out this part

26  ss. 946.502-946.518, the corporation is not an "agency" within

27  the meaning of s. 20.03(11).

28         (3)  It is further the intent of the Legislature that,

29  by July 1, 1985, the corporation shall lease have leased all

30  correctional work programs from the department.

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  1         (4)  It is further the intent of the Legislature that

  2  the state shall have a continuing interest in assuring

  3  continuity and stability in the operation of correctional work

  4  programs and that this part ss. 946.502-946.518 be construed

  5  in furtherance of such goals.

  6         Section 2.  Section 946.5025, Florida Statutes, is

  7  amended to read:

  8         946.5025  Authorization of corporation to enter into

  9  contracts.--The corporation established under this part

10  chapter may enter into contracts to operate correctional work

11  programs with any county or municipal authority that operates

12  a correctional facility or with a contractor authorized under

13  chapter 944 or chapter 957 to operate a private correctional

14  facility. The corporation has the same powers, privileges, and

15  immunities in carrying out such contracts as it has under this

16  chapter.

17         Section 3.  Section 946.5026, Florida Statutes, is

18  amended to read:

19         946.5026  Sovereign immunity in tort actions.--The

20  provisions of s. 768.28 shall be applicable to the corporation

21  established under this part pursuant to s. 946.504(1), which

22  is deemed to be a corporation primarily acting as an

23  instrumentality of the state.

24         Section 4.  Section 946.503, Florida Statutes, is

25  amended to read:

26         946.503  Definitions to be used with respect to

27  correctional work programs.--As used in this part ss.

28  946.502-946.518, the term:

29         (1)  "Corporation" means the private nonprofit

30  corporation established pursuant to s. 946.504(1), or a

31  private nonprofit corporation whose sole member is the private

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  1  nonprofit corporation established pursuant to s. 946.504(1),

  2  and whose board of directors is identical to the board of

  3  directors of the private nonprofit corporation established

  4  pursuant to s. 946.504(1), to carry out this part ss.

  5  946.502-946.518.

  6         (2)  "Correctional work program" means any program

  7  presently a part of the prison industries program operated by

  8  the department or any other correctional work program carried

  9  on at any state correctional facility presently or in the

10  future, but the term does not include any program authorized

11  by s. 945.091 or s. 946.40.

12         (3)  "Department" means the Department of Corrections.

13         (4)  "Facilities" means the buildings and land used in

14  the operation of an industry program on state property.

15         (5)  "Inmate" means any person incarcerated within any

16  state, county, municipal, or private correctional facility.

17         (6)  "Private correctional facility" means a facility

18  authorized by chapter 944 or chapter 957.

19         Section 5.  Section 946.504, Florida Statutes, is

20  amended to read:

21         946.504  Organization of corporation to operate

22  correctional work programs; lease of facilities.--

23         (1)  The department shall lease buildings and land to

24  the nonprofit corporation authorized to operate the

25  correctional work programs, the members of which are appointed

26  by the Governor and confirmed by the Senate. The same

27  appointment process shall be followed to fill any vacancy. The

28  corporation shall be organized pursuant to chapter 617 and

29  shall possess all the powers granted by that chapter. The

30  Board of Trustees of the Internal Improvement Trust Fund shall

31  enter into leases directly with the corporation, for a period

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  1  of at least 20 years, for the lease of the lands that are

  2  currently under sublease with the department and used by the

  3  corporation for correctional work programs and that are

  4  identified as subject to lease numbers 3513, 2946, 2675, 2937,

  5  2673, and 2671 with the Board of Trustees of the Internal

  6  Improvement Trust Fund. Any additional improvements to such

  7  property leased by the corporation from the Board of Trustees

  8  must have the prior approval of the Board of Trustees of the

  9  Internal Improvement Trust Fund.

10         (2)  No sublease for land from any other agency of

11  state government shall be in excess of that amount for which

12  the department is obligated to pay under any lease agreement

13  with any other agency of state government.

14         (3)  The corporation shall negotiate with the

15  Department of Management Services to reach and enter into an

16  agreement for the lease of each correctional work program

17  proposed by the corporation.  The facilities to be leased and

18  the amount of rental for such facilities shall be agreed upon

19  by the Department of Management Services and the corporation,

20  with consultation with the department.  The length of such

21  lease shall be mutually agreed upon among the department, the

22  Department of Management Services, and the corporation;

23  however, the initial lease may not exceed 7 years. The

24  department shall continue to manage and operate the various

25  correctional work programs until the lease between the

26  department and the corporation is effective.

27         (4)  If the department leases a single correctional

28  work program at any correctional institution to the

29  corporation, the corporation shall lease all such correctional

30  work programs at that institution.

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  1         (5)(a)  Prior to entering into any lease or other

  2  separate contract or agreement between the department and the

  3  corporation, the department shall determine that:

  4         1.  The members of the corporation were appointed by

  5  the Governor and confirmed by the Senate;

  6         2.  The articles of incorporation of the corporation

  7  have been approved by the Governor; and

  8         3.  The articles of incorporation contain a provision

  9  that prohibits any director from voting on any matter that

10  comes before the board of directors that would result in a

11  direct monetary gain to any director or any entity in which

12  any director has an interest.

13         (b)  The lease must be submitted to the Attorney

14  General for his or her approval as to form and legality.

15         (b)(c)  All leases of land shall be subject to the

16  approval of the Board of Trustees of the Internal Improvement

17  Trust Fund.

18         (6)(a)  Upon the effective date of each lease of each

19  correctional work program, the department shall cause to be

20  remitted to the corporation all funds appropriated for,

21  associated with, or budgeted for the operation of that

22  correctional work program, as agreed upon among the

23  department, the Department of Management Services, and the

24  corporation.

25         (b)  No operating loss of any type may be transferred

26  to the corporation.

27         (7)  When it leases any correctional work program, the

28  corporation shall exercise a reasonable effort to employ the

29  personnel of the department who are currently involved in the

30  correctional work programs being leased to the corporation.

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  1         (6)(8)  Notwithstanding any provision to the contrary,

  2  the corporation is authorized to use tax-exempt financing

  3  through the issuance of tax-exempt bonds, certificates of

  4  participation, lease-purchase agreements, or other tax-exempt

  5  financing methods for the purpose of constructing facilities

  6  or making capital improvements for correctional work programs

  7  and prison industry enhancement programs on state-owned land

  8  within state correctional institutions. Such tax-exempt

  9  financing may be funded by the General Appropriations Act. If

10  the corporation obtains tax-exempt financing, the state

11  retains a secured interest by holding a lien against any

12  structure or improvement for which tax-exempt financing or

13  state funds are used. The corporation shall include a

14  provision in its financing contract requiring that a lien be

15  filed by the Department of Corrections, on behalf of the

16  state, in order to procure the issuance of tax-exempt bonds or

17  certificates of participation; to enter into lease-purchase

18  agreements; or to obtain any other tax-exempt financing

19  methods for the construction or renovation of facilities

20  related to correctional work programs or prison industry

21  enhancement programs. The lien shall be against the property

22  where any facility or structure is located which has been

23  constructed or substantially renovated, in whole or in part,

24  through the use of state funds. However, there is no

25  requirement for the Department of Corrections to file a lien

26  if the amount of state funds does not exceed $25,000 or 10

27  percent of the contract amount, whichever is less. The lien

28  must be recorded, upon the execution of the contract

29  authorizing such construction or renovation, in the county

30  where the property is located. The lien must specify that the

31  Department of Corrections has a financial interest in the

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  1  property equal to the pro rata portion of the state's original

  2  investment of the then-fair-market value of the construction.

  3  The lien must also specify that the Department of Corrections'

  4  financial interest is proportionately reduced and subsequently

  5  vacated over a 20-year period of depreciation. The contract

  6  must include a provision that as a condition of receipt of

  7  state funding for this purpose, the corporation agrees that,

  8  if it disposes of the property before the state's interest is

  9  vacated, the corporation will refund the proportionate share

10  of the state's initial investment, as adjusted by

11  depreciation.

12         Section 6.  Section 946.506, Florida Statutes, is

13  amended to read:

14         946.506  Modification or termination of correctional

15  work program by the corporation.--This part does Sections

16  946.502-946.518 do not prevent the corporation from modifying,

17  altering, or terminating any correctional work program, once

18  assumed, so long as the corporation is otherwise carrying out

19  the provisions of this part ss. 946.502-946.518.

20         Section 7.  Subsection (1) of section 946.509, Florida

21  Statutes, is amended to read:

22         946.509  Insurance of property leased or acquired by

23  the corporation.--

24         (1)  The State Property Insurance Trust Fund created

25  under s. 284.01 shall insure all property eligible for

26  coverage under part I of chapter 284 which is leased by the

27  department to the corporation or which is subsequently

28  acquired and owned or leased by the corporation and subject to

29  the reversionary ownership interest of the state established

30  in s. 946.505.

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  1         Section 8.  Subsection (1) of section 946.511, Florida

  2  Statutes, is amended to read:

  3         946.511  Provision of inmate labor to operate

  4  correctional work programs; policies and procedures.--

  5         (1)  Inmates shall be evaluated and identified during

  6  the reception process to determine basic literacy, employment

  7  skills, academic skills, vocational skills, and remedial and

  8  rehabilitative needs.  The evaluation shall prescribe

  9  education, work, and work-training for each inmate. Assignment

10  to programs shall be based on the evaluation and the length of

11  time the inmate will be in the custody of the department.

12  Assignment to programs shall be reviewed every 6 months to

13  ensure proper placement based on bed space availability.

14  Assignment of inmates shall be governed by the following

15  objectives and priorities:

16         (a)  Inmates shall be assigned to meet the needs of the

17  work requirements of the Department of Corrections, including

18  essential operational functions and revenue-generating

19  contracts.

20         (b)  Inmates shall be assigned to correctional

21  education.

22         (c)  Inmates shall be assigned to meet all other work

23  requirements of the department, including remaining

24  operational functions and nonrevenue-generating contracts.

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26  As used in this subsection, the term "revenue-generating

27  contracts" includes contracts with the Department of

28  Transportation, the corporation authorized to conduct the

29  correctional work programs under this part II, the corporation

30  and private sector businesses operating programs authorized

31  under s. 946.523 s. 946.006(3), and federal, state, or local

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  1  governmental entities or subdivisions authorized under s.

  2  944.10(7).

  3         Section 9.  Subsections (1) and (2) of section 946.514,

  4  Florida Statutes, are amended to read:

  5         946.514  Civil rights of inmates; inmates not state

  6  employees; liability of corporation for inmate injuries.--

  7         (1)  Nothing contained in this part ss. 946.502-946.517

  8  is intended to restore in whole or in part the civil rights of

  9  inmates.

10         (2)  No inmate compensated under this part ss.

11  946.502-946.517 or by the corporation or the department shall

12  be considered as an employee of the state, the department, or

13  the corporation.

14         Section 10.  Subsection (7) of section 946.515, Florida

15  Statutes, is amended to read:

16         946.515  Use of goods and services produced in

17  correctional work programs.--

18         (7)  The provisions of s. ss. 946.21 and 946.518 do not

19  apply to this section.

20         Section 11.  Subsection (1) of section 946.516, Florida

21  Statutes, is amended to read:

22         946.516  Report to Governor, Legislature, and Auditor

23  General by the corporation; Department of Corrections report;

24  annual financial audit.--

25         (1)  The corporation shall submit to the Governor and

26  the Legislature, on or before July January 1 of each year, a

27  report on the status of the correctional work programs,

28  including, but not limited to, the proposed use of the profits

29  from such programs, a breakdown of the amount of noninmate

30  labor used, work subcontracted to other vendors, use of

31  consultants, finished goods purchased for resale, and the

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  1  number of inmates working in the correctional work programs at

  2  the time of such report.  In addition, the corporation shall

  3  submit to the department, the Governor, the Legislature, and

  4  the Auditor General an annual financial audit report and such

  5  other information as may be requested by the Legislature,

  6  together with recommendations relating to provisions for

  7  reasonable tax incentives to private enterprises which employ

  8  inmates, parolees, or former inmates who have participated in

  9  correctional work programs.

10         Section 12.  Section 946.518, Florida Statutes, is

11  amended to read:

12         946.518  Sale of goods made by prisoners; when

13  prohibited, when permitted.--Goods, wares, or merchandise

14  manufactured or mined in whole or in part by prisoners (except

15  prisoners on parole or probation) may not be sold or offered

16  for sale in this state by any person or by any federal

17  authority or state or political subdivision thereof; however,

18  this section does and s. 946.21 do not forbid the sale,

19  exchange, or disposition of such goods within the limitations

20  set forth in s. 946.006(3), s. 946.515, s. 946.523, or s.

21  946.524 s. 946.519.

22         Section 13.  Section 946.520, Florida Statutes, is

23  amended to read:

24         946.520  Assignment of inmates by Department of

25  Corrections.--

26         (1)  The department shall exert its best efforts to

27  assign inmates to the corporation, or the private sector

28  business authorized under part I of this part chapter, who

29  have not less than 1 nor more than 5 years remaining before

30  their tentative release dates.  Beginning January 1, 1998, the

31  department shall maintain the assignment of at least 60

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  1  percent of inmates to all correctional work programs

  2  collectively to the corporation, or to the private sector

  3  business authorized under part I of this part chapter, who

  4  have less than 10 years remaining before their tentative

  5  release dates.  This 60-percent requirement does not apply to

  6  any correctional work program, or private sector business

  7  authorized under part I of this part chapter, within an

  8  institution for any year in which, as of January 1 of that

  9  year, the average years remaining before the tentative release

10  date of all inmates assigned to that institution exceeds 12

11  years.

12         (2)  The department may not remove an inmate once

13  assigned to the corporation or to the private sector business

14  authorized under part I of this part chapter, except upon

15  request of or consent of such corporation or private sector

16  business or for the purposes of population management, for

17  inmate conduct that may subject the inmate to disciplinary

18  confinement or loss of gain-time, or for security and safety

19  concerns specifically set forth in writing to the corporation

20  or private sector business.

21         Section 14.  Paragraph (f) of subsection (1) of section

22  957.04, Florida Statutes, is amended to read:

23         957.04  Contract requirements.--

24         (1)  A contract entered into under this chapter for the

25  operation of private correctional facilities shall maximize

26  the cost savings of such facilities and shall:

27         (f)  Require the contractor to be responsible for a

28  range of dental, medical, and psychological services; diet;

29  education; and work programs at least equal to those provided

30  by the department in comparable facilities. The work and

31  education programs must be designed to reduce recidivism, and

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  1  include opportunities to participate in such work programs as

  2  authorized pursuant to s. 946.523 s. 946.006.

  3         Section 15.  This act shall take effect upon becoming a

  4  law.

  5

  6          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  7                         Senate Bill 1946

  8

  9  -     Corrects a statutory reference to more accurately define
          the part of the chapter that describes the PRIDE
10        Corporation. Also deletes obsolete language.

11  -     Deletes obsolete language that was only relevant at the
          time of the initial transfer of the prison industries
12        from the Department of Corrections to PRIDE.

13  -     Provides that the State Property Insurance Trust Fund
          may insure PRIDE's leased properties (equipment and
14        machinery) as well as it's owned properties.

15  -     Deletes obsolete statutory references and amends other
          statutory references to more clearly define the part of
16        the chapter that describes the corporation.

17  -     Amends references to the different parts of chapter 946,
          F.S. Clarifies that both PRIDE and PIE are in the same
18        "part" of chapter 946, F.S., and that inmate assignment
          provisions apply to both PRIDE and PIE participants.
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