House Bill 2303

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    Florida House of Representatives - 2000                HB 2303

        By the Committee on Corrections and Representative
    Trovillion





  1                      A bill to be entitled

  2         An act relating to operations of correctional

  3         work programs; revising provisions relating to

  4         leased or managed work programs to conform to

  5         current operations and applications; amending

  6         ss. 946.502, 946.5025, 946.5026, 946.503,

  7         946.506, 946.509, 946.511, 946.514, 946.515,

  8         946.516, 946.518, and 946.520, F.S.; conforming

  9         internal cross references; deleting obsolete

10         language; clarifying a definition; changing a

11         reporting date; amending s. 946.504, F.S.;

12         deleting certain obsolete work program lease

13         requirements; deleting a requirement that the

14         Department of Corrections remit certain funds

15         to a corporation established for correctional

16         work program purposes; deleting a prohibition

17         against transferring operating losses to the

18         corporation; deleting a requirement that the

19         corporation employ certain department

20         personnel; amending s. 957.04, F.S., to conform

21         a cross reference; providing an effective date.

22

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

24

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

26  946.502, Florida Statutes, are amended to read:

27         946.502  Legislative intent with respect to operation

28  of correctional work programs.--

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

30  once one such nonprofit corporation is organized, no other

31  nonprofit corporation be organized for the purpose of carrying

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

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

  3  the meaning of s. 20.03(11).

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

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

  6  correctional work programs from the department.

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

  8  the state shall have a continuing interest in assuring

  9  continuity and stability in the operation of correctional work

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

11  in furtherance of such goals.

12         Section 2.  Section 946.5025, Florida Statutes, is

13  amended to read:

14         946.5025  Authorization of corporation to enter into

15  contracts.--The corporation established under this part

16  chapter may enter into contracts to operate correctional work

17  programs with any county or municipal authority that operates

18  a correctional facility or with a contractor authorized under

19  chapter 944 or chapter 957 to operate a private correctional

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

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

22  chapter.

23         Section 3.  Section 946.5026, Florida Statutes, is

24  amended to read:

25         946.5026  Sovereign immunity in tort actions.--The

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

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

28  is deemed to be a corporation primarily acting as an

29  instrumentality of the state.

30         Section 4.  Section 946.503, Florida Statutes, is

31  amended to read:

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  1         946.503  Definitions to be used with respect to

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

  3  946.502-946.518, the term:

  4         (1)  "Corporation" means the private nonprofit

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

  6  private nonprofit corporation whose sole member is the private

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

  8  whose board of directors is identical to the board of

  9  directors of the private nonprofit corporation established

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

11  946.502-946.518.

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

13  presently a part of the prison industries program operated by

14  the department or any other correctional work program carried

15  on at any state correctional facility presently or in the

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

17  by s. 945.091 or s. 946.40.

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

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

20  the operation of an industry program on state property.

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

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

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

24  authorized by chapter 944 or chapter 957.

25         Section 5.  Section 946.504, Florida Statutes, is

26  amended to read:

27         946.504  Organization of corporation to operate

28  correctional work programs; lease of facilities.--

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

30  the nonprofit corporation authorized to operate the

31  correctional work programs, the members of which are appointed

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

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

  3  corporation shall be organized pursuant to chapter 617 and

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

  5  Board of Trustees of the Internal Improvement Trust Fund shall

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

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

  8  currently under sublease with the department and used by the

  9  corporation for correctional work programs and that are

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

11  2673, and 2671 with the Board of Trustees of the Internal

12  Improvement Trust Fund. Any additional improvements to such

13  property leased by the corporation from the Board of Trustees

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

15  Internal Improvement Trust Fund.

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

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

18  the department is obligated to pay under any lease agreement

19  with any other agency of state government.

20         (3)  The corporation shall negotiate with the

21  Department of Management Services to reach and enter into an

22  agreement for the lease of each correctional work program

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

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

25  by the Department of Management Services and the corporation,

26  with consultation with the department.  The length of such

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

28  Department of Management Services, and the corporation;

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

30  department shall continue to manage and operate the various

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  1  correctional work programs until the lease between the

  2  department and the corporation is effective.

  3         (4)  If the department leases a single correctional

  4  work program at any correctional institution to the

  5  corporation, the corporation shall lease all such correctional

  6  work programs at that institution.

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

  8  separate contract or agreement between the department and the

  9  corporation, the department shall determine that:

10         1.  The members of the corporation were appointed by

11  the Governor and confirmed by the Senate;

12         2.  The articles of incorporation of the corporation

13  have been approved by the Governor; and

14         3.  The articles of incorporation contain a provision

15  that prohibits any director from voting on any matter that

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

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

18  any director has an interest.

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

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

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

22  approval of the Board of Trustees of the Internal Improvement

23  Trust Fund.

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

25  correctional work program, the department shall cause to be

26  remitted to the corporation all funds appropriated for,

27  associated with, or budgeted for the operation of that

28  correctional work program, as agreed upon among the

29  department, the Department of Management Services, and the

30  corporation.

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

  2  to the corporation.

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

  4  corporation shall exercise a reasonable effort to employ the

  5  personnel of the department who are currently involved in the

  6  correctional work programs being leased to the corporation.

  7         (6)(8)  Notwithstanding any provision to the contrary,

  8  the corporation is authorized to use tax-exempt financing

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

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

11  financing methods for the purpose of constructing facilities

12  or making capital improvements for correctional work programs

13  and prison industry enhancement programs on state-owned land

14  within state correctional institutions. Such tax-exempt

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

16  the corporation obtains tax-exempt financing, the state

17  retains a secured interest by holding a lien against any

18  structure or improvement for which tax-exempt financing or

19  state funds are used. The corporation shall include a

20  provision in its financing contract requiring that a lien be

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

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

23  certificates of participation; to enter into lease-purchase

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

25  methods for the construction or renovation of facilities

26  related to correctional work programs or prison industry

27  enhancement programs. The lien shall be against the property

28  where any facility or structure is located which has been

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

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

31  requirement for the Department of Corrections to file a lien

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

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

  3  must be recorded, upon the execution of the contract

  4  authorizing such construction or renovation, in the county

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

  6  Department of Corrections has a financial interest in the

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

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

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

10  financial interest is proportionately reduced and subsequently

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

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

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

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

15  vacated, the corporation will refund the proportionate share

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

17  depreciation.

18         Section 6.  Section 946.506, Florida Statutes, is

19  amended to read:

20         946.506  Modification or termination of correctional

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

22  946.502-946.518 do not prevent the corporation from modifying,

23  altering, or terminating any correctional work program, once

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

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

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

27  Statutes, is amended to read:

28         946.509  Insurance of property leased or acquired by

29  the corporation.--

30         (1)  The State Property Insurance Trust Fund created

31  under s. 284.01 shall insure all property eligible for

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

  2  department to the corporation or which is subsequently

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

  4  the reversionary ownership interest of the state established

  5  in s. 946.505.

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

  7  Statutes, is amended to read:

  8         946.511  Provision of inmate labor to operate

  9  correctional work programs; policies and procedures.--

10         (1)  Inmates shall be evaluated and identified during

11  the reception process to determine basic literacy, employment

12  skills, academic skills, vocational skills, and remedial and

13  rehabilitative needs.  The evaluation shall prescribe

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

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

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

17  Assignment to programs shall be reviewed every 6 months to

18  ensure proper placement based on bed space availability.

19  Assignment of inmates shall be governed by the following

20  objectives and priorities:

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

22  work requirements of the Department of Corrections, including

23  essential operational functions and revenue-generating

24  contracts.

25         (b)  Inmates shall be assigned to correctional

26  education.

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

28  requirements of the department, including remaining

29  operational functions and nonrevenue-generating contracts.

30

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

  2  contracts" includes contracts with the Department of

  3  Transportation, the corporation authorized to conduct the

  4  correctional work programs under this part II, the corporation

  5  and private sector businesses operating programs authorized

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

  7  governmental entities or subdivisions authorized under s.

  8  944.10(7).

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

10  Florida Statutes, are amended to read:

11         946.514  Civil rights of inmates; inmates not state

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

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

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

15  inmates.

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

17  946.502-946.517 or by the corporation or the department shall

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

19  the corporation.

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

21  Statutes, is amended to read:

22         946.515  Use of goods and services produced in

23  correctional work programs.--

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

25  apply to this section.

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

27  Statutes, is amended to read:

28         946.516  Report to Governor, Legislature, and Auditor

29  General by the corporation; Department of Corrections report;

30  annual financial audit.--

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

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

  3  report on the status of the correctional work programs,

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

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

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

  7  consultants, finished goods purchased for resale, and the

  8  number of inmates working in the correctional work programs at

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

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

11  the Auditor General an annual financial audit report and such

12  other information as may be requested by the Legislature,

13  together with recommendations relating to provisions for

14  reasonable tax incentives to private enterprises which employ

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

16  correctional work programs.

17         Section 12.  Section 946.518, Florida Statutes, is

18  amended to read:

19         946.518  Sale of goods made by prisoners; when

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

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

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

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

24  authority or state or political subdivision thereof; however,

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

26  exchange, or disposition of such goods within the limitations

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

28  946.524 946.519.

29         Section 13.  Section 946.520, Florida Statutes, is

30  amended to read:

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  1         946.520  Assignment of inmates by Department of

  2  Corrections.--

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

  4  assign inmates to the corporation, or the private sector

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

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

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

  8  department shall maintain the assignment of at least 60

  9  percent of inmates to all correctional work programs

10  collectively to the corporation, or to the private sector

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

12  have less than 10 years remaining before their tentative

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

14  any correctional work program, or private sector business

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

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

17  year, the average years remaining before the tentative release

18  date of all inmates assigned to that institution exceeds 12

19  years.

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

21  assigned to the corporation or to the private sector business

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

23  request of or consent of such corporation or private sector

24  business or for the purposes of population management, for

25  inmate conduct that may subject the inmate to disciplinary

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

27  concerns specifically set forth in writing to the corporation

28  or private sector business.

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

30  957.04, Florida Statutes, is amended to read:

31         957.04  Contract requirements.--

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

  2  operation of private correctional facilities shall maximize

  3  the cost savings of such facilities and shall:

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

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

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

  7  by the department in comparable facilities. The work and

  8  education programs must be designed to reduce recidivism, and

  9  include opportunities to participate in such work programs as

10  authorized pursuant to s. 946.523 946.006.

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

12  law.

13

14            *****************************************

15                          HOUSE SUMMARY

16
      Revises and clarifies provisions relating to correctional
17    work programs operated by a private nonprofit
      corporation. See bill for details.
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