Nevada Prison Industry Administrative Rules Now in Place

Following a full year of investigating complaints and revising Nevada’s prison industry program statute(s), a new Administrative Rule (AR 854) regulating the operation of that state’s prison industry operation has been submitted to the Board of Prison Commissioners (BPC) by NDOC Director, Greg Cox.  In December this regulation was adopted and became effective.

Sen. Richard Bryan

In October the NDOC submitted a long list of new or amended AR’s to the BPC for approval and implementation.  At that time Cox withheld the proposed AR 854 addressing the operation of the agency’s prison industry operations.  Cox held back on this single AR by advising the Board he wanted to work with former Senator Richard Bryan on the language of that particular regulation.

On December 17^th Director Cox submitted the final negotiated regulation to BPC members, Governor Sandoval, AG Masto and Secretary of State, Ross Miller for consideration.  Following approval by the Board, the new prison industry regulations are now in effect.

NDOC Dir. Cox

Critics and opponents of the prison industry program have now adopted a position of “monitoring” the state’s prison industry program. They’re doing so in an effort of ensuring there are no further infringements upon Nevada’s workers and businesses that compete against prison industries.  Last year it was discovered that the NDOC regulations were not being fully enforced and state statutes controlling prison industry operations were insufficient to protect both Nevada's private sector workers and competing non-prison partnered businesses.

All of this came about after lawmakers, the media and general public learned that the prison industry program was more or less operating without any real oversight.  This allowed the NDOC to “partner” with a local Las Vegas business - Alpine Steel, LLC -  in a manner that provided that business with an unfair advantage over competitors and reduced the number of available private sector jobs.  Not only did this single business enjoy prison labor far below standard wage rates, but it also received low cost taxpayer subsidized utility costs and lease terms for state owned property that was far below the state averages. Additionally the NDOC failed to enforce most of the terms of the contract it had with Alpine, allowing the company to default on paying the salaries of NDOC staffers, prison workers and monthly lease payments or utility costs and making no effort to cure the defaults.

When this partnership was finally terminated by Governor Sandoval and the smoke cleared, the state was left with an owed debt of nearly half a million dollars.  Alpine's owner entered into a negotiated agreement to repay the state but almost immediately defaulted, leaving taxpayers on the hook for hundreds of thousands of dollars in unpaid leases, staff salaries, utility costs and owed taxes.  This failed partnership resulted in the revamping of the state’s statutes controlling Nevada's existing prison industries and all proposed new industries.

During the lengthy legislative activities related to the failed Alpine partnership, other issues were discovered that prison labor activists are continuing to pursue at both state and federal levels.  These include the hourly wages paid to inmate workers in the program, deductions taken from prisoner paychecks and working conditions.

Nevada is a participant in a federally run program (Prison Industries Enhancement Certification Program or PIECP) that encourages prison industry/private business partnerships such as the one involving Alpine.   However in order to establish and operate under such partnerships both the state and the private business must agree to abide by stringent mandatory conditions required by the federal government.  Two of the imposed mandatory requirements are that inmates be paid prevailing wages and that the state can only take approved deductions from those wages.  In the case of Alpine, the contract with the state required that inmate workers receive "prevailing wages" (section 8.6) or the same wage paid to private sector workers performing the same duties on the outside.  Instead, the NDOC and Alpine set the inmate wage rate at or below the state minimum wage scale, exploiting the labor of inmate workers and further enriching Alpine.

Subsequently it now appears Nevada is underpaying inmates working in the federal program and taking an unapproved deduction of 5% to fund new prison industry operations.  In effect Nevada’s inmate workforce are being made to fund operating expenses of the prison industry out of their already meager wages.

Prison labor advocates are attempting to work with the NDOC, Nevada authorities and the responsible federal agency to cure any purported violations regarding the PIECP program to ensure Nevada is in full compliance with current state and federal provisions regarding the use of inmate labor.

Currently the Deputy Director of the NDOC’s Prison Industry, Brian Connett has indicated there are no proposed new industries being considered by the agency. However prior to the furor caused by the Alpine situation, Connett was advocating for a new industry in Nevada operated by a California company. The operation would have used inmate labor at minimum wages to sort through collected trash and remove recyclables. The collection of trash and refuse across the state would have been accomplished by the same California company.  This project was moving forward over objections voiced by the labor representative of the Senate's Interim Finance Committee on Industrial Programs, Mr. Mike Magnani.  This recycling "industry" was tabled once the Legislature began looking into the prison industry operations.

Businesses and a second labor representative, Rob Conway now sitting upon the legislative Interim Finance Committee will continue to monitor activities of the prison industry to eliminate the possibility of another situation arising that could jeopardize business owners or private workers.  Additionally the amended statute requires the Board of Prison Commissioners to review and approve any new industries or expansion of existing ones.  Hopefully vigilance by the labor representatives will keep the prison industries and expanded partnerships in check and allow more of Nevada's unemployed to find employment due to the reduction in new prison labor programs that eliminated positions in the past.

Only time will tell if the new regulations prevent another Alpine-styled incident from reoccurring.

MON MAR 25, 2013 AT 05:00 PM EDT

Casinos & Prison Labor – Strange Bedfellows

byBob SloanFollow

 
 
 
 
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                                                        By Bob Sloan

On Tuesday March 19th, the Nevada Board of Prison Commissioners (BPC) met in Carson City to discuss an assortment of prison related issues.  Members of the BPC are: Governor Brian Sandoval, Attorney General, Catherine Cortez-Masto and Secretary of State, Ross Miller.

Issues of: (a) realignment of state Parole and Probation responsibilities with the Nevada Department of Corrections (NDOC; (b) compliance with the federal Rape Elimination Act; (c) certifying the Nevada State Prison as a Historical Site was on the agenda.  However, the topic which generated the most heated public discussion was listed on the agenda was: (d) a review of the prison industries program run by the NDOC.

As I’ve reported over the past two or three months, there has been an increasing amount of criticism of NDOC Director Greg Cox and Deputy Director Brian Connett over the operation of the state’s prison industry program.  This program operates under the name “Silver State Industries” and employs hundreds of inmates in various industrial programs.  Many of those prison workers are actually “employed “by private corporations and companies.

The need for discussion of prison industries during this meeting of the BPC came about due to a total lack of transparency surrounding the program.  The NDOC is reluctant to pull the veil of secrecy from prison industry operations that has hidden it from public and legislative view for years.  This was demonstrated in the meeting on the 19th by Secretary of State Miller when he was forced once again to request a list of industries being run by SSI.  AG Masto made the same request at the previous meeting in December and was assured by Deputy Director Connett that one would be provided at the following meeting.  At this time, no such list has been provided to the BPC by Cox or Connett.

Additionally, for more than two years SSI successfully hid from the BPC and Legislature the fact that Alpine Steel was not paying inmate and staff wages, lease payments, utilities or workers compensation payments owed to the state.  The NDOC also hid their lack of compliance with state statutes requiring notification to private businesses and labor before initiating new industries and took that one step further, by not even apprising the BPC in 2006 of the Alpine contract and creation of the steel fabrication industry.

SSI is operating at least half a dozen industries under the federal PIE Program – yet the Interim Finance Committee on Prison Industrial Programs was never made aware of the mandatory requirements of that program – or that those requirements also called for consulting private businesses and union officials.  The Prison Industries have not paid  inmate workers in the program comparable wages as mandated and have kept that secret from both the BPC and the Committee.

On March 8th the Agenda for the NDOC Budget hearing before the Ways and Means Committee listed several of the prison industries the NDOC claim were operating – but at least one of those was closed back in 2011.  So those excluded by this blanket of secrecy surrounding SSI operations includes the Nevada Assembly.  Unbelievably the one industry that has been closed for nearly two years is still being presented to the BPC as viable and operating and was mentioned as a positive in last week’s Prison Commissioner meeting.

The need for a review by the BPC in the first place was necessitated by this ongoing secrecy and lack of transparency exhibited by the NDOC, the Director and Deputy Director of Prison Industries.  It was this that caused several Nevada companies to complain the prison industry operation was being used to drive down wages in the private sector, reduce the number of available jobs for unemployed workers and argue prison based companies are competing unfairly against others in the marketplace, causing closure of smaller businesses.

At first it was a handful of steel fabrication companies that complained prison-based companies are competing unfairly against others in the marketplace by using – illegally underpaid - inmate labor to underbid on contracts.  But by the day of the meeting, another business owner named BIllow in an entirely different industry was identified as having notified the Governor and the NDOC for more than two years that his embroidery business had been compromised due to direct competition from prison industries.  This complaint had no impact upon that competition that continues to harm that man’s business in the private sector.

Responding on behalf of those complaining, former U.S. Senator Richard Bryan (D NV) proposed to the BPC that Nevada adopt the federal Prison Industry Enhancement Certification Program’s (PIE Program) mandatory requirements as Nevada's prison industry regulations.  The PIE regulations require prison industries to contact and consult with labor groups, unions and private businesses to determine if there will be a negative impact upon sales, displacement of workers or jobs lost prior to commencing any new product line or industry.  They also require inmate wages set at the same rate as those performing identical jobs on the outside.

The state takes back most of the inmate’s earnings to offset the costs of incarceration, healthcare, feeding and clothing of inmates and for victim restitution and to repay fines or fees owed by the prisoner.  Senator Bryan’s proposed solution is simple and easily adopted since Nevada currently holds a PIECP Certificate issued by the U.S. Department of Justice and has six industries participating in the PIE Program.  These SSI industries already have to abide by the mandatory requirements in more than 50% of their operations. Making it applicable to remaining industry operations, would be easily accomplished and resolve the current issues.  This proposal had the support of many of those who spoke to the BPC last Tuesday on this and other issues.

Prison industry operations nationwide have been increasingly scrutinized and widely reported.  Strangely, however, most labor groups and unions have remained silent about the impact – if any – upon their members or workers from competition with prison industries.  The meeting Tuesday broke that ongoing silence, with both the Nevada Executive Secretary Treasurer of the AFLCIO, Danny Thompson and Robbie Conway, Business Agent of Ironworkers Local 433 sitting down with the BPC and objecting to the ongoing competition from prison labor.  Others representing Nevada Law Enforcement, Parole and Probation workers and NDOC employees, also stated their support for the proposed adoption of PIE regulations.

To be fair, the one member of the Committee representing labor is Mr. Magnani of the Teamsters who is totally outnumbered by NDOC, legislative and business members.  His single voice and vote is constantly outweighed by the two members representing the NDOC (Director Cox and NDOC purchasing agent, Greg Smith) and seven more representing business and the legislature. Time and again the minutes reflect Magnani asked for materials, lists of industries in operation and on occasion voiced his opposition to suggested actions advanced by the NDOC (such as the current proposal for a prison based recycling industry).  None of his requests resulted in Connett or the NDOC providing what he’d requested and his vote opposing actions proposed by the NDOC or SSI went against a majority of votes favoring the proposals.

Some members of the Committee would be absent for several meetings then return and cast a vote without any real understanding of what they were voting on – just that the proposals were favored by the NDOC.  So the suggestion presented by Connett last week to the BPC that the “advisory Committee” was a good representation for labor and businesses alike, was disingenuous and misleading at best.

Joining Union voices in opposition of making inmate labor available to private companies were a number of non-union businesses in a rare demonstration of solidarity.  Nearly a dozen union and non-union steel companies signed petitions to the BOPC objecting to the use of prison labor by Alpine Steel, Inc. as a means of underbidding them for steel construction projects in Nevada.  Alpine had been using inmate labor as a means of gaining an advantage over competitors since 2006.

The three petitions stated:

“Honorable Governor Sandoval, Attorney General Masto and Secretary of State Miller;

"We the undersigned owners of steel businesses in Nevada wish to voice our objection to competing against state subsidized prison industries in Southern Nevada.  Competing against prison labor reduces the number of jobs available in our industry and hampers our businesses from expanding.”

Signatories included; Southwest Steel, Tandem Industries, Vegas Steel, Inc., Southern Nevada Welding, A & N Custom Fabricators, XL Steel and Imperial Iron, Inc.

The letter from Southwest Steel outlined the objection(s) best:

“Honorable Governor Sandoval, Attorney General Masto & Secretary of State Miller;

As you all know too well, the construction industry in the Las Vegas valley is as competitive as it’s been in 20 years. With that being said, companies large and small have had to make radical changes; be it cutback of manpower, chase work in different markets or revisit our business model in its entirety, to maintain existence over the last 3 – 4 years has been a challenge.

“As the Vice President of Operations for one of the larger steel companies in Nevada, I wish to voice our Company’s objection to competing against state subsidized prison industries in Southern Nevada. Competing against prison labor reduces the number of jobs available in our industry and hampers our businesses from expanding.

” Tom Morgan
Vice President, Operations
Southwest Steel”

The references to “state subsidized prison industries” come from the unpaid debt outlined above.  For several years Alpine was able to continue operations at the High Desert State Prison, working approximately fifty inmates for several years without paying any of the costs associated with keeping the industry operating.

The state of Nevada has had to pay supervisory staff’s salaries, cover the utility costs of Alpine Steel and absorb the lost lease payments.  The total cost to Nevada’s Taxpayers? $438,000+ according to the forbearance agreement between the Attorney General’s office, NDOC and Alpine Steel:

Only after complaints against Alpine Steel’s use of inmate labor was it discovered that the company had been operating basically without covering the costs of operations – which were ultimately passed on to Nevada taxpayers.   Silver State Industries had curiously authorized the steel fabricating prison industry to remain open and available to Alpine even as SSI was losing money throughout 2011 and 2012, essentially “doubling down” in the hope of recovering its losses.  Once the “debt” and gambling was made public, SSI was forced to close the steel fabrication industry and deny further inmate labor to Alpine.

The foregoing debt is to be paid off over another four year period, very surprisingly given the circumstances, without any interest going forward, unless Alpine defaults on monthly payments of $5,000.  An additional state tax lien  was placed against Alpine Steel in January of this year for another $38,000 plus owed to the Nevada Department of Taxation.

The Alpine Steel story reveals that this company is responsible for the current problems and full media attention now focused upon Nevada’s prison industry program after the Associated Press,Bloomberg Business, Yahoo Finance and California media picked up this story and spread it as far as New Zealand and Australia.  The entire program and indeed, prisoner labor has now come under intense international scrutiny because of the complaints brought against Alpine Steel and the subsidization of its business using Nevadans’ tax dollars.  

This has now resulted in the prison industry program being publicly brought to its knees while state regulations and statutes are under review for amendment because of the actions of Alpine Steel and the NDOC - which occurred without proper oversight.  With the steel fabrication industry shut down, Randy Bulloch has been transformed from a “partner” in the prison industrial program, to a “debtor” forced by the state to repay a huge sum owed to the NDOC.  He has not melted into obscurity with the stigma of having bilked taxpayers out of nearly half a million dollars, instead coming to every meeting involving prison industries and doing his best to fight on behalf of access to inmate labor.

Bulloch and Alpine are out of the prison industry program and business, yet surprisingly, Bulloch is now the “Poster Child” for prisoner labor.  He is now being used by the NDOC to argue on behalf of continuing the program!  Bulloch and NDOC Deputy Director Connett have been seen conferring and whispering before and after budget hearings and meetings – like co-defendants instead of partners in a failed business relationship - a weird sort of relationship with one owing the other nearly a half a million dollars and both continuing to work together.

Mr. Bulloch confided to me in an exclusive interview that he would once again use prisoners to fabricate his steel components…as long as he did not have to pay “comparable wages” to inmates, as was suggested by Senator Bryan’s proposal.  Yet there he was on Tuesday, arguing fiercely in support of the prison industry program, his lone voice supporting prison industries and opposing the views presented by unions, unemployed workers and private businesses.  One has to wonder - why?

Curiously, Director Cox and Deputy Director Connett assign no blame for their current circumstances to Bulloch or Alpine - perhaps that is why Bulloch continues to act as a spokesman on behalf of prison industries.  It will be interesting to see if Randy Bulloch continues his advocacy on behalf of prison labor in future meetings or hearings in the absence of any official business relationship with prison industries.

Nevada companies argue that aside from being forced to compete against already low wages paid to prisoners by Alpine Steel, they have had to pay proper taxes, utilities, leases and workers compensation…or be closed down by the state of Nevada.  This creates a situation whereby the State of Nevada is subsidizing an unfair advantage to Alpine.   This not only hampers any business expansion by free enterprise companies, it also reduces the number of jobs available to unemployed steel workers in Nevada.

Critics of the prison industry programs operated by SSI point to the Legislature’s Interim Finance Committee (the Committee) on Industrial Programs as failing in their duties of oversight.  They blame the committee for failing to protect businesses and workers against prison industry operations.

This committee is made up of Assembly members, Legislators, business owners or representatives and the one member representing labor (Mr. Magnani):

Members
Assemblyman James Ohrenschall, Chair
Senator David R. Parks, Vice Chair
Senator Dean A. Rhoads
Assemblyman John Ellison
Bruce Aguilera, Las Vegas – (Vice President/General Counsel, Bellagio)
Michael Mackenzie, Las Vegas – (Principal, Operations Improvement Company)
Mike Magnani, Las Vegas – (Teamster/Union Representative)
Allen J. Puliz, Las Vegas – (Moving and Storage Co.)
James "Greg" Cox, Director, Department of Corrections
Greg Smith, Purchasing Division

Alternate Members
Debra Miller, Las Vegas
Scott Stolberg, Las Vegas
Richard Serlin, Las Vegas

While the arguments of a lack of protecting some businesses from unfair competition appear factual, other businesses represented on this Committee have profited handsomely from prison labor and industries.  In this undated article, NDOC Deputy Director, Howard Skolnik (who preceded Brian Connett) bragged about the prison industry, saying:

“Skolnik explained, ‘I suspect that most people don't know that anything they are using is made by inmates. More and more of it is. If you have been in many of our major properties you have seen a stained glass window, you have seen something that is manufactured in one of our institutions.’

“They built all the original stained glass in the Excalibur; make casino mattresses, chairs for attorneys, and exclusive lines of clothing for airport retailers. They make award plaques, reupholster cars and rebuild water trucks for a local water company…”

Those involved in the Casino industry in Nevada appear to have profited off of prison labor due to the manufacture of mattresses and custom stained glass products – as have clothing retailers selling to travelers and tourists passing through Nevada’s airports.

This “Committee” has been overseeing prison industries since the late 1980’s and every industry, product, contract with a private company and for determining the impact upon competing companies and workers, comes under their responsibility.  They had to approve the prison industry manufacture of the stained glass for the Excalibur and for the mattresses for casino/resorts…and the manufacture of clothing for sale to tourists.

Once the Committee makes their decision on new products or a new industry, that decision is supposed to then go to the Board of Prison Commissioners for final review and approval or denial.  In the recent case involving Alpine Steel, the BPC stated publicly that this was “an isolated incident when a contract was enacted without clearance from the prison board.”  Whether this was indeed an “isolated incident” or a practice of the Committee that became the standard over the years, is unknown.  Certainly the experience of Mr. Billow makes claims of Alpine Steel being an “isolated” incident difficult to swallow.

Throughout this story the elephant in the room remains the total lack of transparency and absence of independent oversight.  The Committee does not pursue any review of programs or industries submitted to them by the NDOC’s Deputy Director of Prison Industries.  Connett brings them a proposal for a new industry or product line and informs that he has determined this would be a viable industry or contract.  The only information obtained by the Committee is a one-sided presentation from the NDOC.  They perform no independent analysis, provide no notice to the public, labor unions of competing private businesses.  No opportunity is provided to any of these affected groups to attend a subsequent meeting where the proposal would be discussed.

Instead, as we now understand from both the NDOC Director and the BPC, the Committee has been operating as the final word on approving new industries.  The requirement of forwarding Committee recommendations to the BPC for final review and approval has been somehow eliminated.  The skipping of this important step results in the NDOC securing approval of an “interim” legislative body for new programs without notice or conference with the executive department.  The BPC has overall authority over the NDOC but in this manner they are kept out of the loop and the only safeguards provided to the public is a small Committee that has never performed their duties as required.

Even if the chain of review operated as required, this Committee would end up stamping proposals with their recommendation and forwarding it to the BPC – with a recommendation that was determined in the absence of any actual review, public input or notice.  Their determinations would be based solely upon the presentation made by the NDOC accompanied by a departmental analysis indicating the program and contract with a private company would be successful.

But, if as the BPC claims, the approval for the manufacture of products for the casinos, resorts and clothing retailers, water trucks, limousines and restoring classic cars, were ultimately not approved by them, they would still share responsibility with the Committee for lost jobs or contracts resulting from those operations.  They too have a duty to perform final reviews and failed to notice that new proposals were not being submitted.

The fact that the BPC is now attempting to address the issue and make corrections to ensure no more Nevadans lose jobs and businesses aren’t faced with unfair competition, is a benchmark.  It also highlights that the Committee has been shirking their duties for decades, approving whatever plans the NDOC and SSI put before them without vetting the company’s or the industries proposed by SSI.  They performed no independent or impartial reviews of such proposals, failed to determine factually the impact upon labor and other businesses before stamping each submission “approved”.  Again, one has to ask – why?

The proposal made by Senator Bryan makes good sense to most.  The argument against it came from NDOC Deputy Director Connett and Alpine’s owner, Randy Bulloch.  Both voiced their opposition to installing the PIE regulations as Nevada law or regulation, claiming that paying prisoners wages comparable to that paid on the outside, would remove the key incentive that attract businesses that exploit inmates    - and ultimately result in the loss of jobs to Nevadans.

Connett told the BPC, “I can’t pay prevailing wages.  If I have to pay prisoners prevailing wages, it would mean closing the industry program completely.”  That statement was more revealing than most who heard it realized.  In the PIE Program industries operated by SSI, prisoners are paid “minimum wage”, not “comparable” or “prevailing” wages as required.  SSI is required to consult with outside businesses and labor unions and groups prior to commencing any new PIE operation…and has not complied with these requirements either.

This explains why Director Cox and Connett have refused to mention or discuss the PIE Program when defending Nevada’s prison industries.  Nor has Connett explained his conflict of interest as head of the NCIA – which promotes prison industries and is tasked with ensuring compliance on behalf of the U.S. Department of Justice. Another duty Deputy Director Connett has failed to fulfill.

Apparently the NDOC and top officials fear the BPC or general public looking at the PIE Program’s requirements, will find that the federal mandates have been ignored as well as existing state statutory requirements.  

In the next article I will report on my exclusive interview with Randy Bulloch and other interviews obtained while I was in Nevada for the BPC meeting.  I’ll also introduce Jacob’s Trading Company and owner Irwin Jacob and how both have attempted to build a unique empire using prison labor and factories.  JTC operates another of SSI’s prison industries in Nevada using female prisoners as a unique labor force and SSI has applied for funding to expand the facilities for JTC to put on a third shift and employ an additional 18 workers.  This discussion continues, while Nevada’s unemployed remains at near record levels and Governor Sandoval continues to inform that creating jobs is his number one priority.

2:40 PM PT: Regardless of whether Governor Sandoval and the BPC adopt the proposed PIE Program regulations as state reg's, the Governor stated, ""Under no circumstances would I want prison labor displacing private sector jobs," Sandoval said. "I don't want a situation where private contractors are underbidding by subsidizing with prison labor."
This statement combined with assurances that no further prison industries will be opened without approval from the BPC, indicates business owners and unemployed Nevadans are being offered at least a modicum of protection by the Governor and other members of the BPC.

INSOURCING - Fighting for reform - can cost you your job.

Bob Sloan (C)2010

Fri Dec 3, 2010

For those visitors who may have missed my Corporatocracy series involving corporations, private prisons and prison labor, below are links to the series.

Corporatocracy
Corporatocracy-II
Corporatocracy-III
Corporatocracy-IV
Corporatocracy-V
Corporatocracy-Conclusion

Bob Sloan's diary :: ::
From 2003 through 2006 the Florida Department of Corrections (FDOC) was suffering from a severe case of corruption. James Crosby, former Warden at Florida State Prison (FSP-Death Row) had been chosen by Governor Jeb Bush in January 2003 to serve as the new Secretary of the FDOC (a Cabinet poistion). He replaced Michael Moore (no relation) who was leaving under a cloud of controversy and allegations of corruption. The Secretary's position included a permanent seat upon the Prison Rehabilitative Industries and Diversified Enterprises (PRIDE) Board.

There were many other choices for the Governor to pick from, but he knew Crosby. During both elections where Bush prevailed, Crosby had been a loyal supporter. He held or sponsored many meetings, dinners, parties and fund raisers for his friend Jeb. In addition to Crosby's support, Bush also had the support of another FDOC employee - A.C. Clark. Later Crosby and Clark were often referred to within the FDOC as heads of the "Good Ol' Boy's Club" or collectively, "The Big Boys".

Together Clark and Crosby twisted arms, threatened loss of prime shifts or overtime in efforts to "get out the vote" for Jeb and suggest others within the FDOC make "contributions" to Bush's campaign. In both instances a lot of support and money was garnered from among FDOC staff (22,000+) in support of Jeb Bush. Later many of those FDOC employees voiced complaints that their attendance at fund raisers, contributions and votes were coerced by Clark and Crosby through fear of losing jobs, having their shifts changed or being transferred from one institution to another, if they did not do as "suggested" by the Good Ol' Boys.

So Crosby's selection to head the state's entire Department of Corrections appears to have been based - at least in part - as a reward to Crosby for his political activities related to both Bush campaigns in Florida. Of course Crosby was only too happy to carry A.C. Clark along with him - from within the ranks of FDOC to the very top rung of the department's ladder.

As Governor, Bush later appointed A.C. Clark to the 8th Circuit Judicial Nominations Committee (JNC Appointment). Later, Bush would be unable to recall why he appointed Clark to a four year term on the Committee in response to questions as to why he would appoint a high school drop-out to such a position.

Clark had been with FDOC for years - as had Crosby - and worked at several institutions. During his tenure with DOC he made rank, only to lose it on more than one occasion. Once Crosby took office as Secretary, Clark quickly rose from Sergeant...to Major...then Colonel...to Assistant Warden...to FDOC Regional I Director (NW Florida). He rose through all those ranks from 2003 to 2006. Other "pals" of Crosby and Clark were also promoted over others with more time and rank. Clark was provided a huge home (described as a "Mansion") located on prison property and owned by the State of Florida.

Together Crosby and Clark raised hell in and around Tallahassee, within the FDOC and community. They threw lavish parties and orgies for FDOC officials and politicians on DOC property. Some turned into brawls, with attendees throwing punches at one another. When the media would try to follow up on the rumors they heard, most kept quiet, referring all to interview Crosby. He tried to keep it out of the media but was unsuccessful and several FDOC staff were arrested for the bar fights.

Crosby recruited semi-pro ball players to play for the FDOC softball team. They were hired to work as prison staff, worked no shifts but received paychecks like the rest, for playing ball.

A steroid ring was begun among staff working in the DOC. The tendrils of the drug ring ran from North Florida across the state to many institutions and originated in Egypt.

Clark was at the center of many rumors: that he used money out of an FDOC recycling fund to open a limousine service, that he was strong-arming other staff members to cover his shifts with threats of termination, covering-up

In mid-November, 2005 Crosby had to address the poor behavior of his men and women staff:

"Effective in mid November, Crosby told his top staff to begin spreading the word that employees arrested for an "act of aggression" would automatically be placed on leave while the department investigates the arrest. Crosby also told reporters in mid-November that additional policy changes will be issued soon that will cover other areas of employee misconduct on and off the job."

Crosby should have taken his own words to heart. He didn't know it then, but he and the others were already under intense FDLE and F.B.I. joint investigations for corruption, taking kickbacks and embezzling funds from the recycling program and misuse of inmate labor. It was later learned that the investigations were begun in 2003.

It is inconceivable that anyone committing such rampant corruption and abuses of power was without knowledge of the corruption ongoing within PRIDE, when he held a seat on the Board. He ignored all of the information I and others provided him with about PRIDE's state and federal violations, complaints of the formation of the spin-offs used for money laundering, wages and reduced wages of inmates, that also reduced the money taken in by the FDOC for room and board deductions from those wages. He ignored all of our requests and complaints...yet in 2005 when the IG's Audit on PRIDE was released, Crosby publicly stated that from the time he became Secretary and became a member of PRIDE's Board, he had reservations about the business practices, formation of the spin-offs and accounting procedures employed by PRIDE. He further alleged that he brought all of that to the attention of the Governor and Legislators. He knew how to "spin" the facts, for sure.

Throughout the scandals, investigations and a multitude of calls for Governor Bush to fire Crosby, he refused and instead had Crosby's back right up until February 2006. The formal investigations involving all of the corruption in FDOC were completed after the first of the year and A.C. Clark was arrested and Bush could no longer keep the lid on and ordered Crosby to Resign.

On February 10, 2006 Governor Bush appointed James R. McDonough as interim Secretary to replace Crosby. McDonough had been with Bush's Administration for the full length of his Governorship, serving as director of the Governor's Office of Drug Control. McDonough is a West Point Graduate, Author of "Platoon Leader" - later made into a popular film - and served proudly in the military, serving last in the European theater where he wrote the manuals on strategy and tactics that are still in use today.

McDonough took over with Bush's instructions to weed out the corruption and reform the prison system. He accepted his orders and went to work as always. Within weeks of taking over, McDonough fired many top officials, demoted those who had been promoted due to crony-ism and promoted those who had the skills to perform the duties assigned and had been passed over under Crosby and Moore. He charged department staff to remember their oaths and abide by them in dealing with other staff and inmates.

McDonough made a lot of enemies in his reform efforts. Most of those were the remainder of the "Good Ol' Boys" who had survived but were keeping their heads down.

I contacted Secretary McDonough shortly after he became Interim-Secretary, providing him with documents and information alleging corruption and violations of the PIECP program within PRIDE. I advised that I had provided the information previously to Secretary Crosby, to no avail. He refused to look into or investigate the allegations - even as a Board Member. Secretary McDonough replied immediately, asking if I was sure of my allegations, did I have documentation in support and did I have any suggestions on how the prison industries should be run by PRIDE, knowing what their Mission Goals were: training and job placement of inmates?

In response I forwarded several confidential documents outlining the corruption and efforts that had been made by myself and a prison advocacy group I belong to: (Little Ol' Ladies In Tennis Shoes - Florida LOLITS) and Kay Lee of Making The Walls Transparent (MTWT) to bring corruption in FDOC and PRIDE to the attention of Governor Bush and the media. I also included an independent plan for the revamping of PRIDE that would return the corporation to the Mission Goals. I advised that the Board had to be replaced with members appointed from both the commercial corporate and public activist arena's.

McDonough responded that he appreciated the input and documents and that he had ordered an investigation to be conducted by the department's IG and as soon as the report was completed he would provide a copy. As I awaited the report, I asked the Secretary if he planned on being at the upcoming (April 2006) PRIDE Board meeting and would I be allowed to attend? He promptly replied that yes, he intended to be there and as a member of the public I could attend.

I made the meeting, flying down from Indiana. Secretary McDonough could not make it to the meeting as he was in the midst of several near crises within the FDOC, but his General Counsel did attend. She spoke on his behalf and asked if I was present. Finding me there, she advised the Board that Secretary McDonough asked that the Board allow me to make a presentation to the Board as I had several grave concerns as to the PIECP program and PRIDE's business operations an practices in that program and those same concerns were mirrored by Secretary McDonough.

At the conclusion, I was given the courtesy of giving a presentation. I raised the issues of underpaid wages, use of inventoried products to fill PIECP orders, the contaminated foods coming out of their food processing plant, ethics violations by PRIDE President Edgemon and his son-in-law also working for PRIDE at the food processing plant involving the theft of ATL's equipment and materials and the formation of two for-profit corporations by his son-in-law that took the place of ATL's contracts and profits.

In addition I spoke to the use of inmates in the training program who were serving life or other sentences in excess of 20 years - voicing concerns of safety to both staff and inmates (allowing those inmates access to dangerous tools) and issues of avoiding overtime by adjusting inmate hours by removing some hours from one pay period and putting them on subsequent periods and the sale of prison made goods upon open markets without paying any PIE wages at all.

The Board thanked me and advised they would address my concerns and answer the questions at the next meeting in July. However, the Board was not aware of the situation involving ATL and the food processing facility and wanted Edgemon to explain the circumstances. Edgemon declined, stating that they were currently in litigation with ATL and he was unable to speak to the issues until the litigation was completed.

I attended the July meeting also and the Board had their internal auditor present to give a report on PIECP and how it was operated by PRIDE. In that presentation she stated that PRIDE had been reviewed numerous times by the NCIA and had been found in compliance. In answer to the wages paid to inmates, she answered that currently "all inmates working on PIECP orders/projects are paid the Florida minimum wage of $6.40 per hour." Again, she reiterated that under PIECP law, that was sufficient to meet the wage requirements of 18 USC 1761(c)(2).

I was allowed to respond to her presentation and again, pointed out that upon their website they claim to pay inmates "prevailing wages" as required by the law:

"The PIE Certification Program was created by Congress in 1979 to encourage states and units of local government to establish employment opportunities for prisoners that approximate private sector work opportunities. The program is designed to place inmates in a realistic working environment, pay them the local prevailing wage for similar work, and enable them to acquire marketable skills to increase their potential for successful rehabilitation and meaningful employment upon release."

The Board said they would further investigate my argument and address the issues in the next meeting in November. I attended that one also and PRIDE's "PIE Coordinator, Brian Connet was brought in and gave a presentation on PIECP. He gave a glowing number of statistics alleging that their training program through PIECP was turning recidivism rates around and reported many individual success rates. He again, mentioned that the inmate workers were paid minimum wage and that was in compliance with the requirements of the "1999 Final PIECP Guidelines". Mr. Connett was unable to stay and answer any questions posed by myself or the Board members. He was followed by a presentation given by Ms. Carol Tortarelli, then serving as PRIDE's Program Director for Mission Programs. She added more glowing reports to those provided by Connett about successful reentries by former offenders, but did not futher address PIECP.

At the conclusion I again gave a presentation that challenged the legality of the minimum wages paid by PRIDE when they were supposed to be paying prevailing wages - a substantial difference. The Chairman of the Board and two othr members turned to President Edgemon and asked," Jack are we in compliance on PIECP requirements by paying minimum wages?" His reply was a nod yes. When I again advised they were not only in non-compliance, but the failure to pay the proper wage rendered each product shipped across state lines a federal felony, Edgemon was asked again; "Jack are we or are we not in compliance by paying minimum wages to the workers?" His response that time was a verbal, "Yes."

(I traveled several more times to Florida to attend the meetings but was unable to convince the Board that the inmates were being cheated by paying them less than required...and by doing that, they were reducing their tax requirement of matching deductions for S.S. as employers and it also reduced the amount of room and board taken from inmate wages and turned over to the FDOC. I was talking and my words fell upon 12 sets of deaf ears).

In July 2006 Crosby and Clark both plead guilty to receiving kickbacks under an FDOC canteen contract involving Keefe Commissary Network and American Institutional Services (Earlier this year the owners of AIS were indicted, arrested and are awaiting trial for their parts in the kickback scheme. Keefe has not been mentioned after the original stories broke, and there has been no indication they will also face prosecution for their involvement in furthering the bribery scandal).

When Governor Crist took over from Bush, he kept McDonough on, citing his great work at reforming the huge FDOC.

From my initial contact with Secretary McDonough we exchanged many emails and had lunch at one of the 06 Board meetings in Orlando, discussing the issues surrounding PRIDE and their business practices. I told him I had learned that ATL was not the first private business "stolen" by PRIDE through PIECP and provided him with the names of the companies and facts as I knew them. In September 2007 the investigation he had ordered into PRIDE's operations was completed and turned over to him and McDonough resigned his position on the PRIDE Board (I didn't get a copy of that report until late 2009). In October 2009 McDonough called for Governor Crist to abolish PRIDE and return the operations of the prison industries back to the FDOC and in November he cited the fact that PRIDE 'had lost their way" in pursuing their mission goals and statement. In addition he demanded that PRIDE turn over more than $1 million deducted from inmate wages for room and board deductions, but PRIDE refused, saying state law allowed them use of those funds and McDonough countered that federal law says it rightfully belonged to his department and superseded state law.

A Senate Appropriations hearing was scheduled for January 8, 2008 to hear the proposals presented by McDonough and the FDOC on PRIDE. On January 7, 2008 James McDonough submitted an unexpected announcement that he was "retiring" from the FDOC as Secretary. I had traveled to Floria to be present at the hearing in support of the FDOC and heard the news sitting in my hotel room. I immediately emailed the Secretary and questioned if his retirement was a result of his battle over PRIDE. He stated it was his decision and the PRIDE fight had no effect upon his decision. However, since that time McDonough has been involved in several efforts to change the laws surrounding incarceration, to reduce incarceration and remove some inmates from prison and place them in facilities to address their addictions or mental problems. He has also called for sentencing alternatives to prison. So McDonough remains active in trying to change Florida's dependence upon mass incarceration and the costs in tax dollars that results in.

Throughout my conversations and communications with James McDonough he was always truthful - regardless of any personal costs to him for voicing those truths - and demonstrated a huge amount of integrity and concern. While Secretary he eliminated wasteful contracts, reduced the cost of canteen items for the inmates - state wide - and re-negotiated the inmate phone access contracts, reducing the cost of collect calls to family and friends from within the FDOC. He made many changes to professionalize the FDOC and return it to a department that was again respected - a hard task after all the corruption in the nation's third largest correctional system.

His ability to understand and realize the actions of PRIDE were violative and hampering rather than assisting a reduction in prison recidivism made him respond as he had always done, by correcting the situation and addressing the corruption that lurked within PRIDE.

Unfortunately the Governor and Legislators were willing to support McDonough's efforts of ridding the FDOC of corruption and crony-ism - but not PRIDE. When his attention turned to PRIDE (Legislator's cash cow) he had to be stopped. Inmates and most corrupt officers do not contribute to campaign funds - PRIDE and their lobbyists do - so reforming the FDOC was okay. He had been so effective at rooting out all forms of corruption within FDOC that he simply could not be allowed to pursue the same attack upon the source of most Florida politician's lobby funding through PRIDE...and in his absence corruption and huge sums of money made off of inmate labor, continues as before; growing more insidious and being exported to other states every day.

In the next segment we'll discuss the NCIA and their impact upon the violations within PIECP.

Some have asked that I provide links to the other segments in this series. Below you will find them.

INSOURCING - A new concept about private sector job losses
INSOURCING-II-The Wheel of Money and Sorrow...
INSOURCING-III - Corporate Wheel of Profit Rolls On...
INSOURCING-IV - More Profits Through Monopolies...-
INSOURCING - The Real Reason your jobs MUST go to prison and what they do with the money saved...
INSOURCING - Why this Investigative series began...
INSOURCING - Florida Corruption Exposed
INSOURCING- Violations-under-PIECP

INSOURCING IV – More Profits Through Monopolies...

So to take up where Segment III left off, our prisoner is now incarcerated safely away from society in a state prison that is privatized. Food provided to the inmate is provided by a private food service contractor such as Aramark or Trinity Food Service Group. These corporations receive large chunks of tax dollars to provide food to inmates and are often fined for non-compliance with contract terms.

On the first day of assigned work at the prison industry, the inmate is presented documents to sign. One of the documents is a “voluntary participation document” for PIECP. When asked what this program is, our inmate is informed that if they want to earn as much as minimum wage on some of the products they make, they have to volunteer for this program. That is usually all the information provided to new hires and they sign it.

During the course of employment within the prison industry the inmate works diligently at his assigned tasks, making a myriad assortment of products for a corporation partnered with the prison industry; Boeing, Microsoft, Victoria’s Secret, Starbucks or any one of the hundreds of other corporations operating under the PIECP program.

During the prison term the inmate visits the infirmary on several occasions and his/her account is debited with a $4.00 fee for each visit. Actual medical care and treatment was paid for with tax dollars due under the contract. Medication is provided to the inmate for ailments. The private prison physician orders pills in for the inmate in a dosage that are less than that manufactured by the pharmaceutical provider, so the pills are split under a separate private contract issued by the DOC to another company – such as TYA - to cut the pills in half. This contract is worth about $12 million annually, and paid for with tax dollars.

Successfully completing 85% of the imposed sentence, the inmate prepares to leave prison and return to the community. At this time he is introduced to Prison Fellowship Ministries (PFM). PFM is the largest prisoner reentry program provider in the U.S. They are the recipients of numerous state and federal tax payer grants for reentry assistance and are privately funded through donations. Our inmate is moved to a pre-release dormitory where he will meet with PFM representatives and be “counseled” through a program that is designed to indoctrinate inmates into the Evangelical Christian belief system. In addition the inmate is instructed to secure a surety bond guaranteeing the state that he/she will not violate the terms of post-release supervision he/she will be on until the 15% remainder of sentence (gain time) is finished. The bond will be issued through the American Bail Coalition (mentioned in the previous segment) or one of their agents who will receive from $2,500.00 to $5,000.00 up front from the inmate or his/her family for issuing the bond.

If our inmate is able to provide the money for the bond he/she will be released back to the community. If not, the gain time earned can be revoked and the inmate stay in prison until the sentence is completed in full – day for day.

In the foregoing scenario, our inmate has made thousands of dollars for all of the various corporations involved directly or indirectly with criminal justice. Private U.S. corporations providing food, housing, medical, banking, phone services, commissary, prison industry, bonding - pre-trial and post-release and reentry assistance have all profited from this one inmate’s term of incarceration. In addition other corporations profited; chemical spray manufacturers, construction companies building new prisons, prison staff unions made money from dues paid by the guards, taser manufacturers profited from sales.

The numbers of private corporate hands in the prison industrial complex are staggering. What is more alarming is the fact that many of those corporations and individuals involved are all affiliated with the American Legislative Exchange Council. They sit upon the board of ALEC’s nine Task Forces and “assist our lawmakers” in developing new laws and to increase the penalties for existing criminal violations. They work diligently to increase privatization of anything governmental – especially those duties involving incarceration.

One side effect of all this is the impact upon private sector jobs displaced by more and more manufacturing moving into prison industries. State correctional authorities that operate prison industries openly advertise the benefits of partnerships between private companies and prison industries by advising prospective partners that using prison labor allows them to label their products as “Made In The U.S.A.” and provides a workforce that requires no payment of benefits, are always on time and do not miss work due to family problems.

ALEC and their corporate benefactors and members receive invaluable assistance in their efforts of taking jobs from the private sector and replacing those positions with prisoners. One of the tools that assist them is the Correctional Industries Association. This Association is similar to the National Correctional Industries Association. A brief look at their Resolution on the Fair Labor Standards Act demonstrates their goal of reducing prison labor wages to benefit corporate profits and eliminate any inmate attempts of being considered employees or receiving fair wages for their work. You might wonder who is behind an Association such as this – well many of the same ones behind the NCIA:

• AMERICAN JAIL ASSOCIATION /JAIL INDUSTRIES ASSOCIATION,
• CORRECTIONAL INDUSTRIES ASSOCIATION /BUREAU OF JUSTICE ASSISTANCE PIE CLEARINGHOUSE,
• NATIONAL CRIMINAL JUSTICE REFERENCE SERVICE,
• NATIONAL INSTITUTE OF JUSTICE,
• BUREAU OF JUSTICE ASSISTANCE (BJA),
• INSTITUTE FOR LAW AND JUSTICE,
• NATIONAL INSTITUTE OF CORRECTIONS INFORMATION CENTER,
• CO OFFICE OF CORRECTIONAL JOB TRAINING AND PLACEMENT,
• BUREAU OF JUSTICE STATISTICS,
• JAIL INDUSTRIES CENTER (BJA),
• NIC NATIONAL ACADEMY OF CORRECTIONS,
• PIE COORDINATOR CORRECTIONAL INDUSTRIES ASSOCIATION.

The only names missing from the foregoing list are ALEC and their members; Prison Fellowship Ministries and the American Bail Coalition to make the picture complete.

With the Bureau of Justice Assistance’s authority to operate and oversee PIECP and prison industry operations and their involvement with the CIA and NCIA that make every effort to avoid paying inmates prevailing wages as required by PIECP, corporations make more money. Incentive is provided for even more corporations to choose to join them and avoid paying private sector wages when they can use inmate labor and save as much as 80% of the typical private sector hourly wage. The situation is made worse by the fact the BJA outsourced all oversight and operational duties assigned to them by the DOJ, to the NCIA.

As demonstrated by this series, Insourcing, we have been made aware of the vast amount of public funding that is being paid to private corporations involved in every phase of our judicial system – state and federal. From arrest through release these corporate interests are represented and rewarded with your tax dollars. To increase profits, they also have worked out a system whereby inmate families and friends contribute to their bottom line by sending money to inmates that is used to pay for banking, phone calls, medical and dental treatments, purchase of personal items by the inmate and finally, bonding to assure state authorities that inmate will not reoffend (this has become law in two U.S. states) and is being introduced in as many as 32 others this year.

Religious groups have discovered the tax dollars available for programs related to incarceration and have found ways to profit from incarceration (Prison Fellowship Ministries) and now want to further profit by establishing Christian prisons in Texas and again in Oklahoma and again in Oklahoma, staffed by Christians only and with inmates who “volunteer” to be housed there and ministered to daily in Evangelical theories and matters. These Christian facilities will also have prison industries upon the grounds where the Christian inmates will work for federal minimum wage. Of course these Christian prisons will be funded with our tax dollars and because the facilities will be operated by a Church organization, their income will be tax exempt – as are existing operations like those operated by Prison Fellowship. If/when these Evangelical Christian groups manage to establish and build these prison facilities, the first side effect will be an immediate drop in private sector jobs that will then be given to the inmates for minimum wage scale.

If you think this kind of Christian involvement in prison operation is not possible, you have only to look back to 2001 when one of the first Presidential Executive Orders issued by President Bush in January, 2001 was the establishment of the “White House Offices Of Faith-Based Community Initiatives” (WHOFBCI) in U.S. Government agencies and departments with instructions that staffers of each agency were to assist faith-based groups to cut through red tape and get access to federal tax dollars for community projects – especially ones related to prison incarceration and reentry. There are sites out there now providing instructions to faith-based groups on how to get the most federal tax money for their projects.

All of the acts committed and issues presented by this series have been initiated and helped along by our lawmakers. Without them corporate interests and manipulations of our state and federal laws would not be possible. We would still have many of our private sector jobs, our mortgage “industry” would not have been able to manipulate markets that would eventually collapse from those manipulations. Safeguards and regulations would not have been eliminated or watered down to allow for more profits and less government “interference” in many corporate interests such as banking, investments and insurance rates. All of these contributed to the economic picture we face today and were accomplished by our representatives succumbing to the large contributions provided by the corporations who now own most of them.

The way forward to stop the loss of jobs and more corporate influence in our life and government is to de-elect corporate enablers now in office. Those who vote against the will of their constituents to side with corporate interests have to be voted out of office. In selecting those who would replace the enablers, we must start asking important questions and firmly inform candidates that we are willing to risk one term of office on them and if they also fall under the spell of powerful corporations and special interest organizations such as ALEC, one term is all they’ll get. We all have to ignore the disinformation and mudslinging that accompanies every election cycle now. We must push for truth in campaign runs on the issues important to us and not fall into the trap of arguing about inconsequential issues devised to distract us from genuine positions of the candidates. Nothing will change unless we initiate the changes ourselves.

Political party or affiliations doesn’t matter; if your elected representative demonstrates support for corporate interests over the community’s with his/her voting, replace them until you elect one who votes for your community. Only in this way are we going to bring about reform to replace corporate control with public interests and put our country back in order.
Another action we can take is to force a change in existing prison industry legislation at the state and federal levels that will bring jobs back to our communities and neighbors. PIECP is the current controlling federal law but is being so mismanaged by the Department of Justice that all regulation has disappeared, transferred to the private sector through the NCIA. Letters have to be written to the DOJ demanding that PIECP Guidelines be enforced. Legislative intent of creating a level playing field for private sector and prison industry competition has been circumvented through deregulation and outsourcing of the program to corporate interests. The majority of citizens have been totally unaware of PIECP until recently. They had no idea the program existed and was contributing to their job losses over the past several years. We all have to make others aware of the program and how it is contributing to our lost jobs and income. In this way more pressure can be exerted by the public to reform this program so it no longer represents a cash cow to corporations and ALEC members and lawmakers who profit from it.

If PIECP is run as intended, the advantages now available to corporations would cease. They would have to pay prevailing wages to inmate workers; pay workers comp insurance premiums and would be unable to sell their products on the open markets in the state of manufacture without paying inmate workers even minimum wages. Additionally state prison facilities are funded with your dollars – even if privately operated. The prison industries operated from those prisons are offering their corporate partners cheap leases of as little as a dollar a year for entire manufacturing facilities. These are your facilities, bought and paid for with tax dollars. Every dollar saved by a corporation on these leases are a dollar paid for in subsidy by you and I.

If these modifications to the program are removed, there will be much less incentive for corporations to partner with prison industries and private sector job losses will diminish and some that have been taken will return.

This won’t affect outsourcing, but stopping insourcing is a good first step.

INSOURCING III - Corporate Wheel of Profit Rolls On...

Corporations depend upon labor for their manufacturing and service industry needs. To keep the labor pool full to the rim, they develop ideas for new laws that benefit them and contribute to access to more and more individuals, some of which are highly educated and well trained with skills that will benefit prison industry operations. To this end they partner with organizations and politicians sympathetic to their needs and desires.

The machinations in the foregoing paragraph are accomplished over and over again through the American Legislative Exchange Council (ALEC) and their corporate membership. Corporate representatives meet with ALEC's conservative lawmaker membership and write "model Legislation" that is then taken back to states where the member lawmakers attempt to attract sponsorship and eventually pass the legislation into law. One a law is enacted and put in place, other machinery awakens and goes to work.

A violation of the new law is discovered, the person committing the "crime" is arrested and the actual "Wheel of Sorrow and Money" begins to turn and generate profits for the corporate interests. First, the arrestee is provided an opportunity to be released pending trial by posting a surety bond to get out of jail.

ALEC's corporate member, the American Bail Coalition (ABC - it's Executive Director serving upon ALEC's Public Safety and Elections Task Force) is there to provide bonding and of course, profit from the "service" provided to the arrestee. Many state's and the federal government have implemented a pre-trial release program allowing pre-trial release of defendants, but ALEC vigorously fights against these programs to keep private sector bonding intact and making money. This is a a very important arena for ALEC, as can be seen at their Model Legislation page on Public Safety page. ALEC has no less than 13 proposed legislative bills dedicated to bail and bail recovery issues. No mis-understanding of the influence wielded by ABC within the Public Safety Task Force. Of course reading about any of this soon to be proposed legislation is not possible, due to the secretive nature of ALEC. You must be a member to access their model legislation pages.

However there is a way to discover some of what they propose by access to proposed legislation through other sources. For instance here is a two part clip on a presentation given by the ABC to ALEC lawmakers on Model bail bond legislation proposed by ALEC (second part here). For those who watch these video presentation and wonder what the document contained in the "package" given to lawmakers was, here it is. "A Plan to Reduce Prison Overcrowding and Violent Crime - “Conditional Post-Conviction Release Bond Act”. Earlier and detailed proposed legislation on this issue is found here.

For those too busy to watch the video or read the proposed legislation, here it is in a nutshell: the American Bail Coalition makes millions off of pretrial bonding. Now they want to make millions more off the same pretrial defendants - who were convicted and sent to prison - once they are up for early release. How? The ABC is promoting legislation that would allow states to require those up for release to get their family or friends to post a post-release surety bond, guaranteeing the state that they won't re-offend if released early. Of course the surety bonds issued would require a minimum 10% "fee" paid to the bonding company for the posting of the bond. The ABC Executive Director Dennis Bartlett suggested at one of the legislative presentation that lawmakers should first check to see if their state could implement this bonding system through administrative means, saying legislation takes longer and may not be as successful as just issuing and edict to allow bonding of released offenders.

So ALEC corporate members make money immediately on bonds issued to release pretrial defendants and they wish to make more on the back end through more bonding initiatives. Following arrest and bonding a trial is held - or pretrial deals made - and an offender is found guilty. Once that occurs, the sentencing guidelines enacted by ALEC model legislation kicks in and the offender is often times sentenced to the harshest sentence allowed under the guidelines, and returns to jail to await transfer to the state prison. Many jails are now privately run facilities outsourced to the likes of ALEC members Geo Group and CCA. The state or county pays these corporations a per diem for each day the convicted offender is housed there. Corporations providing food and canteen products to the inmates also make profits. Any phone calls made by the offender are handled by AT&T or other telecom providers, and the costs of these collect calls are as much as 300% higher from jail facilities than they are when made from pay phones. The convicted offender's family and friends pay these outrageous fees. The jail facility receives a "commission" from the telecom provider for allowing the placement of their equipment within the jail. Within many states county and municipal jails now charge inmates for their room and board, assessing a daily fee for incarceration. This charge is taken out of the offender's account and if he/she has no money, a lien is placed upon the account and any money received into the account is then debited first to pay for the charges and remaining funds can then be used by the offender.

Once bed space is available at the prison for the offender, he is put on a bus and transported from the jail to the prison. Often times this transfer is made using private transportation companies that contract to move prisoners around the state and country. More corporate profit from the prisoner.

Once at the prison the offender - now called an inmate - is put through orientation and medical screening. The medical department is also operated by a private corporation such as Prison Health Services, now called PHS Correctional Health out of Tennessee. Your tax dollars pay for this medical screening and any subsequent use of medical care or treatment needed by the inmate. Inmates are usually charged a co-pay of from $4.00 to $6.00 and this is turned over to the private contractor.

Following orientation the inmate is moved in the "general population" area of the prison for permanent housing. Once there he/she is put through another screening process to determine what job will be assigned to the inmate. IF he/she has skills particularly needed by the prison industry located at the prison, the inmate is assigned to the prison industry. Otherwise he/she is assigned to another job within the prison.

Again, phone calls are handled by the same or another telecom provider that is contracted with the prison operator to handle communications. The fees are usually higher from prisons than they were from jails (security is quoted as causing the increased rates) and again, paid for by the person or family called by the inmate.

The prison authority establishes an account for the new inmate. Banking has also been outsourced and privatized and the corporation with the contract is allowed to charge a monthly fee of between $4.00 and $6.00 for handling the account - regardless of whether or not the inmate has money in the account or not. Money sent in to the inmate can no longer be sent as money orders, personal checks or cash through the mail directly to the inmate or prison where he/she is housed. The inmate is provided "deposit slips" that he/she must send to friends and family who wish to send them money. They have to enclose a money order and send it with the deposit slip to the address established by the bank and prison authority. Once received it is deposited in the inmate's account - after a fee of from $.50 to $2.00 is taken out for "handling" by the bank.

Money that is left after paying the above fees is available to the inmate to purchase clothing, hygiene and other items he/she desires: food, snacks, tobacco, etc. The commissary where these items are purchased are owned and operated under contract between the prison authority and a private corporation such as Keefe Commissary Network. The only items available to an inmate must come from this provider. Family and friends can no longer send food, clothing, hygiene or other items to an inmate - everything an inmate buys or is allowed to have in his/her possession is purchased through the commissary provider.

Tomorrow I will continue this sad tale about the corporate profits from inmates - both as inmates and as a source of cheap labor.