House Bill hb1133c1

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    Florida House of Representatives - 2001             CS/HB 1133

        By the Council for Healthy Communities and Representatives
    Brutus, Trovillion and Heyman





  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, 946.516,

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

  9         cross references; deleting obsolete provisions;

10         clarifying a definition; changing a reporting

11         date; amending s. 957.04, F.S., to conform a

12         cross reference; providing legislative findings

13         with regard to fulfillment of an important

14         state interest; creating s. 946.525, F.S.,

15         relating to participation by the corporation in

16         state group health insurance and prescription

17         drug coverage programs; providing for

18         participation by the corporation board of

19         directors in said programs; providing for a

20         fee; providing conditions for submission of

21         proposals and for review thereof; providing

22         terms and conditions for enrollment; providing

23         for applicability; providing for rules;

24         requiring certain letters and rulings with

25         regard to the State Group Self-Insurance

26         Program; requiring notification to the

27         Legislature; providing a contingent effective

28         date.

29

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

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

  2  946.502, Florida Statutes, are amended to read:

  3         946.502  Legislative intent with respect to operation

  4  of correctional work programs.--

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

  6  once one such nonprofit corporation is organized, no other

  7  nonprofit corporation be organized for the purpose of carrying

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

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

10  the meaning of s. 20.03(11).

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

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

13  correctional work programs from the department.

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

15  the state shall have a continuing interest in assuring

16  continuity and stability in the operation of correctional work

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

18  in furtherance of such goals.

19         Section 2.  Section 946.5025, Florida Statutes, is

20  amended to read:

21         946.5025  Authorization of corporation to enter into

22  contracts.--The corporation established under this part

23  chapter may enter into contracts to operate correctional work

24  programs with any county or municipal authority that operates

25  a correctional facility or with a contractor authorized under

26  chapter 944 or chapter 957 to operate a private correctional

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

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

29  chapter.

30         Section 3.  Section 946.5026, Florida Statutes, is

31  amended to read:

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  1         946.5026  Sovereign immunity in tort actions.--The

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

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

  4  is deemed to be a corporation primarily acting as an

  5  instrumentality of the state.

  6         Section 4.  Section 946.503, Florida Statutes, is

  7  amended to read:

  8         946.503  Definitions to be used with respect to

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

10  946.502-946.518, the term:

11         (1)  "Corporation" means the private nonprofit

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

13  private nonprofit corporation whose sole member is the private

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

15  whose board of directors consists of directors, at least 51

16  percent of whom are also directors on the board of directors

17  of the private nonprofit corporation established pursuant to

18  s. 946.504(1), to carry out this part ss. 946.502-946.518.

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

20  presently a part of the prison industries program operated by

21  the department or any other correctional work program carried

22  on at any state correctional facility presently or in the

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

24  by s. 945.091 or s. 946.40.

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

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

27  the operation of an industry program on state property.

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

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

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

31  authorized by chapter 944 or chapter 957.

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  1         Section 5.  Section 946.506, Florida Statutes, is

  2  amended to read:

  3         946.506  Modification or termination of correctional

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

  5  946.502-946.518 do not prevent the corporation from modifying,

  6  altering, or terminating any correctional work program, once

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

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

  9         Section 6.  Subsection (1) of section 946.509, Florida

10  Statutes, is amended to read:

11         946.509  Insurance of property leased or acquired by

12  the corporation.--

13         (1)  The State Risk Management Trust Fund created under

14  s. 284.30 shall insure all property eligible for coverage

15  under part I of chapter 284 which is leased by the department

16  to the corporation or which is subsequently acquired and owned

17  or leased by the corporation and subject to the reversionary

18  ownership interest of the state established in s. 946.505.

19         Section 7.  Subsection (1) of section 946.511, Florida

20  Statutes, is amended to read:

21         946.511  Provision of inmate labor to operate

22  correctional work programs; policies and procedures.--

23         (1)  Inmates shall be evaluated and identified during

24  the reception process to determine basic literacy, employment

25  skills, academic skills, vocational skills, and remedial and

26  rehabilitative needs.  The evaluation shall prescribe

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

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

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

30  Assignment to programs shall be reviewed every 6 months to

31  ensure proper placement based on bed space availability.

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  1  Assignment of inmates shall be governed by the following

  2  objectives and priorities:

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

  4  work requirements of the Department of Corrections, including

  5  essential operational functions and revenue-generating

  6  contracts.

  7         (b)  Inmates shall be assigned to correctional

  8  education.

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

10  requirements of the department, including remaining

11  operational functions and nonrevenue-generating contracts.

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

14  contracts" includes contracts with the Department of

15  Transportation, the corporation authorized to conduct the

16  correctional work programs under this part II, the corporation

17  and private sector businesses operating programs authorized

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

19  governmental entities or subdivisions authorized under s.

20  944.10(7).

21         Section 8.  Subsections (1) and (2) of section 946.514,

22  Florida Statutes, are amended to read:

23         946.514  Civil rights of inmates; inmates not state

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

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

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

27  inmates.

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

29  946.502-946.517 or by the corporation or the department shall

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

31  the corporation.

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  1         Section 9.  Subsection (1) of section 946.516, Florida

  2  Statutes, is amended to read:

  3         946.516  Report to Governor, Legislature, and Auditor

  4  General by the corporation; Department of Corrections report;

  5  annual financial audit.--

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

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

  8  report on the status of the correctional work programs,

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

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

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

12  consultants, finished goods purchased for resale, and the

13  number of inmates working in the correctional work programs at

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

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

16  the Auditor General an annual financial audit report and such

17  other information as may be requested by the Legislature,

18  together with recommendations relating to provisions for

19  reasonable tax incentives to private enterprises which employ

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

21  correctional work programs.

22         Section 10.  Section 946.518, Florida Statutes, is

23  amended to read:

24         946.518  Sale of goods made by prisoners; when

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

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

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

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

29  authority or state or political subdivision thereof; however,

30  this section does not forbid the sale, exchange, or

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  1  disposition of such goods within the limitations set forth in

  2  s. 946.515, s. 946.523, or s. 946.524.

  3         Section 11.  Section 946.520, Florida Statutes, is

  4  amended to read:

  5         946.520  Assignment of inmates by Department of

  6  Corrections.--

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

  8  assign inmates to the corporation, or the private sector

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

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

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

12  department shall maintain the assignment of at least 60

13  percent of inmates to all correctional work programs

14  collectively to the corporation, or to the private sector

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

16  have less than 10 years remaining before their tentative

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

18  any correctional work program, or private sector business

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

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

21  year, the average years remaining before the tentative release

22  date of all inmates assigned to that institution exceeds 12

23  years.

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

25  assigned to the corporation or to the private sector business

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

27  request of or consent of such corporation or private sector

28  business or for the purposes of population management, for

29  inmate conduct that may subject the inmate to disciplinary

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

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  1  concerns specifically set forth in writing to the corporation

  2  or private sector business.

  3         Section 12.  Paragraph (f) of subsection (1) of section

  4  957.04, Florida Statutes, is amended to read:

  5         957.04  Contract requirements.--

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

  7  operation of private correctional facilities shall maximize

  8  the cost savings of such facilities and shall:

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

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

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

12  by the department in comparable facilities. The work and

13  education programs must be designed to reduce recidivism, and

14  include opportunities to participate in such work programs as

15  authorized pursuant to s. 946.523 946.006.

16         Section 13.  The Legislature finds that a proper and

17  legitimate state purpose is served when employees of the

18  corporation established under this part, which is primarily an

19  instrumentality of the state and carries out a vital state

20  purpose under the direction of a board of directors which is

21  appointed by the Governor and confirmed by the Senate, are

22  given additional choices for the basic protections afforded by

23  group health insurance and prescription drug coverage programs

24  that also permit the continued operation of a competitive

25  marketplace and assure that affordable and available coverage

26  is extended to all interested parties. Therefore, the

27  Legislature determines and declares that s. 946.525, Florida

28  Statutes, fulfills an important state interest.

29         Section 14.  Section 946.525, Florida Statutes, is

30  created to read:

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  1         946.525  Participation by the corporation in state

  2  group health insurance and prescription drug programs.--

  3         (1)  The board of directors of the corporation

  4  established under this part may apply for participation in the

  5  state group health insurance program authorized in s. 110.123

  6  and the prescription drug coverage program authorized by s.

  7  110.12315 by submitting an application along with a $500

  8  nonrefundable fee to the Department of Management Services.

  9         (2)  As a prerequisite to the adoption of a resolution

10  for participation in the state group health insurance program

11  and the prescription drug coverage program, the corporation

12  shall seek proposals to provide health insurance and

13  prescription drug coverage which coverages are equivalent to

14  those offered currently by the corporation and coverages

15  equivalent to the state group health insurance program and the

16  prescription drug coverage program. The corporation shall

17  review and consider all responsive proposals prior to the

18  adoption of any resolution for participation in the state

19  group health insurance program and the prescription drug

20  coverage program.

21         (3)  If the Department of Management Services

22  determines that the corporation is eligible to enroll, the

23  corporation shall agree to the following terms and conditions:

24         (a)  The minimum enrollment or contractual period shall

25  be 3 years.

26         (b)  The corporation shall pay to the Department of

27  Management Services an initial administrative fee of not less

28  than $2.61 per enrollee per month, or such other amount

29  established annually to fully reimburse the Department of

30  Management Services for its costs.

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  1         (c)  Termination of participation of the corporation

  2  requires written notice 1 year before the termination date.

  3         (d)  If participation is terminated, the corporation

  4  may not reapply for participation for a period of 2 years.

  5         (e)  The corporation shall reimburse the state for 100

  6  percent of its costs, including administrative costs.

  7         (f)  If the corporation fails to make the payments

  8  required by this section to fully reimburse the state, the

  9  Department of Revenue or the Department of Banking and Finance

10  shall, upon the request of the Department of Management

11  Services, deduct the amount owed by the employer from any

12  funds to be distributed by it to the corporation. The amounts

13  so deducted shall be transferred to the Department of

14  Management Services for further distribution to the trust

15  funds in accordance with this chapter.

16         (g)  The corporation shall furnish the Department of

17  Management Services any information requested by the

18  department which the department considers necessary to

19  administer the state group health insurance program and the

20  prescription drug coverage program.

21         (4)  The provisions of ss. 624.436-624.446 do not apply

22  to the state group insurance program or to this section.

23         (5)  The Department of Management Services may adopt

24  rules necessary to administer this section.

25         Section 15.  The Department of Management Services

26  shall request from the Internal Revenue Service, by October 1,

27  2001, a written determination letter and a favorable private

28  letter ruling, stating that the State Group Self-Insurance

29  Program, as amended by s. 946.525, Florida Statutes, as

30  created in this act, is a facially qualified plan. The

31  department shall notify the President of the Senate and the

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  1  Speaker of the House of Representatives within 30 days after

  2  the receipt of the favorable or unfavorable letters.

  3         Section 16.  This act shall take effect upon becoming a

  4  law, except that section 14 shall take effect only when the

  5  Department of Management Services receives the favorable

  6  letters requested by section 15. If the favorable letters are

  7  not received, section 14 shall not take effect.

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