Colorado Legislative Council Staff

STATE

FISCAL NOTE

No State General Fund Impact

Cash Fund Exempt Revenue and Expenditure Impact

Drafting Number:

Prime Sponsor(s):

LLS 98-508

Rep. Snyder

Sen. Bishop

Date:

Bill Status:

Fiscal Analyst:

January 13, 1998

House Judiciary

Steve Tammeus (866-2756)

 

TITLE:            CONCERNING THE USE OF INMATE LABOR AT NONSTATE-OWNED FACILITIES.


Summary of Legislation


STATE FISCAL IMPACT SUMMARY

FY 1998/99

FY 1999/2000

State Revenues

General Fund

Correctional Industries Cash Fund Exempt



$4,500



$2,700

State Expenditures

General Fund

Correctional Industries Cash Fund Exempt



$4,500



$2,700

FTE Position Change

None

None

Local Government Impact


            This bill requires on and after March 1, 1999, all inmate labor programs operated at a non-state-owned prison facility to be certified by the Division of Correctional Industries under the Department of Corrections. The bill requires all programs in operation prior to March 1, 1999 to be certified by May 1, 1999.


            “Inmate labor program” is defined as a program operated at a nonstate-owned prison facility as a business or for profit utilizing in whole, or in part, labor of inmates. The bill requires the division to promulgate rules by February 1, 1999, governing the certification, including:

               establishing a procedure for certifying inmate labor programs that shall include review by the Correctional Industries Advisory Committee of a business plan for each inmate labor program;

               establishing all inmate labor programs to comply with all federal laws and regulations relating to the use of inmate labor;

               requiring that all goods or services be priced at prevailing market rates; except for goods or services sold to governmental or nonprofit entities;

               requiring procedures for resolving conflicts of interest;

               requiring that inmates be compensated as determined by rule promulgated by the department;

               requiring that all inmate labor records be open for inspection; and

               requiring nonstate-owned prison facilities to reimburse the division for any expenses incurred in certifying and monitoring the inmate labor programs.

            The bill authorizes each nonstate-owned prison facility operating an inmate labor program to distribute wages of an inmate for certain payments pursuant to guidelines established by the Executive Director of the Department of Corrections.


            The bill adds a county sheriff to the membership of the Correctional Industries Advisory Committee. The bill also requires the advisory committee to review the feasibility and effect of any business program at a nonstate-owned prison facility and make recommendations to the division.


            The bill will become effective at 12:01 a.m. on the day following the ninety-day period after adjournment sine die of the General Assembly, or on the date of the official declaration of the vote of the people as proclaimed by the Governor, if a referendum petition is filed pursuant to Article V, Section 1 (3) of the State Constitution.


            The bill will affect state cash fund exempt revenue and expenditures. Therefore, the bill is assessed as having a state fiscal impact.



State Revenues


            The Department of Corrections estimates that five facilities will be certified in FY 1998-99 and three facilities will be certified in FY 1999-2000. The department will conduct a business plan review and a program review for each of these facilities and will assess a fee, as explained in the “State Expenditures” section of this fiscal note, to recover associated certification expenditures.


            Pursuant to Section 2-2-322, C.R.S., which requires legislative service agency review of legislative measures which include the creation or increase of any fee collected by a state agency, the following analysis is provided.


Correctional Industries Cash Fund Exempt Revenue

Inmate Labor Certification Program Fees

Type of Fee

Current Fee

Proposed Fee

Fee Change

#

FY98-99

#

FY99-00

Fee Impact FY 1998-99

Fee Impact FY 1998-99

Business Plan

$0

$225

$225

5

3

$1,125

$675

Program Plan

$0

$675

$675

5

3

3,375

2,025

TOTAL

$4,500

$2,700



State Expenditures


            The Department of Corrections believes each facility will require an annual business plan review and an annual program review. Each business plan would require eight hours at a total cost of $225 including personal services, operating, and travel costs. Each program review would require 24 hours at a total cost of $675 including personal services, operating, and travel costs.


            The department assumes that all related expenditures will be from existing base resources, that existing Correctional Industries personnel will conduct the business plan and program reviews, that all associated expenditures will be Correctional Industries Cash Fund Exempt, and that no new state appropriations will be required for FY 1998-99 to implement the provisions of the bill.



Spending Authority


            This fiscal note would imply that no new state spending authority or appropriations are required for FY 1998-99 to implement the provisions of this bill.



Departments Contacted


            Corrections                 Law                Local Affairs