LRB-3530/1
RAC:kaf:km
1997 - 1998 LEGISLATURE
July 15, 1997 - Introduced by Senators Moen, Burke, Jauch, Decker, Clausing,
Plache, Wineke
and Wirch, cosponsored by Representatives Meyer, Riley,
Turner, Albers, Boyle, Bock, Krug, Springer, Notestein, La Fave, J. Lehman,
Gronemus, Black, Baumgart, Staskunas, Hasenohrl, Plouff
and Murat.
Referred to Committee on Health, Human Services, Aging, Corrections,
Veterans and Military Affairs.
SB260,1,2 1An Act to amend 303.01 (2) (em); and to create 303.01 (5m) and 303.01 (11) of
2the statutes; relating to: the operation of private businesses in state prisons.
Analysis by the Legislative Reference Bureau
Under current law, the department of corrections (DOC) is authorized to lease
space and equipment in the state prisons to 3 private businesses who will employ
inmates or residents to manufacture products or components or provide services for
sale on the open market. This bill provides that no private business may operate
under this DOC program if any of the following occur:
1. The private business employs prison inmates or institution residents in
skills, crafts or trades in which there exists a surplus of available gainful labor in the
locality in which the prison inmates or institution residents are to perform the skills,
crafts or trades.
2. The manufacturing, production or other work-related functions of the
employes of the private business who are not prison inmates or institution residents
are reduced as a result of the employment of prison inmates or institution residents.
3. The wages or fringe benefits of the employes of the private business who are
not prison inmates or institution residents are reduced as a result of the employment
of prison inmates or institution residents.
4. The employment of prison inmates or institution residents impairs a
collective bargaining agreement covering employes of the private business who are
not prison inmates or institution residents.
5. The private business employs prison inmates or institution residents to
perform manufacturing, production or other work-related functions that can be

performed by employes of the private business who have been laid off by the private
business.
6. The private business employs prison inmates or institution residents in lieu
of employing persons who are not prison inmates or institution residents.
7. The employment of prison inmates or institution residents restricts the
promotional opportunities of employes of the private business who are not prison
inmates or institution residents.
Under the bill, if DOC determines that any of the results specified in items 1.
to 7. have occurred, the private business must immediately cease its operations
under the program.
The bill also provides that DOC may not enter into a contract to purchase or
lease equipment that has a value of $10,000 or more for use under the DOC program
(as well as the entire prison industries program) without the approval of the joint
committee on finance and requires any private business that conducts operations
under the DOC program to report quarterly to the joint committee on finance on the
number of persons it employs who are not prison inmates or institution residents.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB260, s. 1 1Section 1. 303.01 (2) (em) of the statutes is amended to read:
SB260,3,82 303.01 (2) (em) Lease space, with or without equipment, within the precincts
3of state prisons, as specified in s. 302.02, or within the confines of correctional
4institutions operated by the department for holding in secure custody persons
5adjudged delinquent, to not more than 3 private businesses to employ prison inmates
6and institution residents to manufacture products or components or to provide
7services for sale on the open market. The department shall comply with s. 16.75 in
8selecting businesses under this paragraph. The department may select a business
9or enter into a lease under this paragraph only with the approval of the joint
10committee on finance. The department shall consult with appropriate trade
11organizations and labor unions prior to issuing requests for proposals and prior to
12selecting proposals under this paragraph. Each such private business may conduct

1its operations as a private business, subject to the wage standards under sub. (4), the
2disposition of earnings under sub. (8), the displacement and reporting requirements
3under sub. (5m),
the requirements for notification and hearing under sub. (1) (c), the
4requirement for prison industries board approval under s. 303.015 (1) (b) and the
5authority of the department to maintain security and control in its institutions. The
6private business and its operations are not a prison industry. Inmates employed by
7the private business are not subject to the requirements of inmates participating in
8prison industries, except as provided in this paragraph;
SB260, s. 2 9Section 2. 303.01 (5m) of the statutes is created to read:
SB260,3,1110 303.01 (5m) Displacement. (a) No private business under sub. (2) (em) may
11conduct operations under that subsection if any of the following occur:
SB260,3,1512 1. The private business employs prison inmates or institution residents in
13skills, crafts or trades in which there exists a surplus of available gainful labor in the
14locality in which the prison inmates or institution residents are to perform the skills,
15crafts or trades.
SB260,3,1816 2. The manufacturing, production or other work-related functions of the
17employes of the private business who are not prison inmates or institution residents
18are reduced as a result of the employment of prison inmates or institution residents.
SB260,3,2119 3. The wages or fringe benefits of the employes of the private business who are
20not prison inmates or institution residents are reduced as a result of the employment
21of prison inmates or institution residents.
SB260,3,2422 4. The employment of prison inmates or institution residents impairs a
23collective bargaining agreement covering employes of the private business who are
24not prison inmates or institution residents.
SB260,4,4
15. The private business employs prison inmates or institution residents to
2perform manufacturing, production or other work-related functions that can be
3performed by employes of the private business who have been laid off by the private
4business.
SB260,4,65 6. The private business employs prison inmates or institution residents in lieu
6of employing persons who are not prison inmates or institution residents.
SB260,4,97 7. The employment of prison inmates or institution residents restricts the
8promotional opportunities of employes of the private business who are not prison
9inmates or institution residents.
SB260,4,1110 (b) Any private business that is determined by the department to have violated
11par. (a) shall immediately cease conducting operations under sub. (2) (em).
SB260,4,1412 (c) Each private business that conducts operations under sub. (2) (em) shall
13report quarterly to the joint committee on finance on the number of persons it
14employs who are not prison inmates or institution residents.
SB260, s. 3 15Section 3. 303.01 (11) of the statutes is created to read:
SB260,4,1816 303.01 (11) Contracts. The department may not enter into a contract to
17purchase or lease equipment that has a value of $10,000 or more for use under this
18section without the approval of the joint committee on finance.
SB260, s. 4 19Section 4. Initial applicability.
SB260,4,2220 (1) This act applies to private businesses that enter into or renew a contract to
21operate and employe prison inmates or institution residents under section 303.01 (2)
22(em) of the statutes on or after the effective date of this subsection.
SB260,4,2323 (End)
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