SOP 409.05.01: Prison Industries Enhancement Certification Program (PIECP)

|GEORGIA DEPARTMENT OF CORRECTIONS
Standard Operating Procedures|Col2|Col3|
|---|---|---|
|`Functional Area: `
`SUPPORT SERVICES/P.I.E.`|`Reference Number: `
`409.05`|`Revises`
`Previous`
`Effective Date:`
`1/25/2006`|
|`Subject:`
`PRISON INDUSTRIES`
`ENHANCEMENT PROGRAM`|||
|`Authority:`
`Oliver`|`Effective Date:`
`8/01/07`|`Page``1`` of`
`11`|

I. POLICY:

   It is the policy of the Georgia Department of Corrections to
   provide one or more work programs of voluntary labor by
   inmates for privately owned employers producing, mining or
   manufacturing goods for sale to public or private purchasers.
   These programs shall operate as Prison Industry Enhancement
   Certification Programs (“PIECP”) of the Bureau of Justice
   Assistance, U.S. Department of Justice, according to Title 18
   U.S.C. Section 1761.

II. APPLICABILITY:

   This procedure is applicable to all State Correctional
   Institutions and to the inmates committed to those
   institutions, excluding detainees housed at state facilities.
   This procedure shall also apply to any private individual,
   corporation, partnership, or association contracting with the
   Georgia Department of Corrections for inmate labor as
   authorized and/or limited by Title 18 U.S.C. Section 1761 and
   O.C.G.A. § 42-5-120 et seq .

III. RELATED DIRECTIVES:

   A. Title 18 U.S.C. § 1761, Title 29 U.S.C. § 201 et seq .,
      Title 42 U.S.C. §§ 4321-4347, Title 29 U.S.C. § 207(a).

   B. GDC Rules: 125-3-08-.01, 125-3-08-.02, 125-3-08-.03
      O.C.G.A. § 42-5-120 et seq .

IV. DEFINITIONS:

   A. PIECP : Prison Industries Enhancement Certification
      Program. Program authorized by U.S. Congress as part of
      the Justice System Improvement Act of 1984, codified at
      Title 18 U.S.C. Section 1761 and by Georgia statute

|Functional Area:
SUPPORT SERVICES|Prev. Eff. Date:
1/25/2006|Page 2 of
11|
|---|---|---|
|`Functional Area:`
`SUPPORT SERVICES`|`Effective Date:`
`8/01/07`|`Reference Number:`
`VJ01-0001`|

   O.C.G.A. § 42-5-120 et seq . Allows PIECP applicants who
   have been determined by the Director of the Bureau of
   Justice Assistance to meet statutory and guideline
   requirements to sell inmate produced, mined or
   manufactured products in interstate commerce.

B. BJA: Bureau of Justice Assistance. Agency within the
   Office of Justice Programs, U.S. Department of Justice
   which is responsible for assuring that all PIECP programs
   remain within federal guidelines and regulations.

C. CAC : Cost Accounting Center. Term used to identify each
   PIECP work program as distinct goods production unit that
   is managed as a separate accounting entity within any
   certified PIECP.

D. The Department: The Georgia Department of Corrections.

E. Commissioner: Commissioner of the Georgia Department of
   Corrections.

F. GCI: Georgia Correctional Industries

G. Designation : An exercise of the Department of
   Corrections’ discretionary authority, as Certificate
   Holder, to bring a CAC within its certified PIECP
   program. The exercise of this authority results in an
   extension of PIECP exemption status and an imposition of
   state and federal statutory PIECP compliance
   requirements.

H. Un-Designation : Notice that a specific CAC has ceased to
   operate within Georgia Department of Corrections.

I. Certificate Holder : The Georgia Department of Corrections
   as authorized by PIECP Certification to administer PIECP
   work programs and to designate one or more CACs.

J. Certification: Refers to BJA’s discretionary authority to
   designate the Georgia Department of Corrections as
   Certificate Holder and to designate PIECP work programs
   pursuant to Title 18 U.S.C. Section 1761(c). BJA
   certified projects are exempt from certain federal
   marketability restraints on the transport of inmate-made
   goods in interstate commerce, as provided in Title 18
   U.S.C. Section 1761(a).

|Functional Area:
SUPPORT SERVICES|Prev. Eff. Date:
1/25/2006|Page 3 of
11|
|---|---|---|
|`Functional Area:`
`SUPPORT SERVICES`|`Effective Date:`
`8/01/07`|`Reference Number:`
`VJ01-0001`|

K. PIE Coordinator : Georgia Department of Corrections’
   and/or Georgia Correctional Industries employee
   responsible for supervision and management of all PIECP
   programs.

L. Employer Model CAC: Cost Accounting Center in which
   inmates work directly for the private company or in a CAC
   within a private prison. Employer model CACs must
   provide Workers’ Compensation to inmates participating in
   PIE work programs. Social Security (FICA) coverage must
   also be provided, unless BJA is provided with written
   evidence of exemption from the Social Security
   Administration and/or the Internal Revenue Service.

M. Manpower Model CAC : Cost Accounting Center operated by
   the Department in which inmate workers are employed by
   and paid through the Department but supervised by the
   private company. Private companies are charged by the
   Department for the inmate labor. Manpower model CACs are
   not required to offer Social Security coverage to
   workers.

N. Customer Model CAC: Cost Accounting Center operated by
   the Department in which inmates work, are supervised by,
   and are paid through the Department. Inmate produced, or
   manufactured items and/or goods are sold to private
   companies. Customer model CACs are not required to offer
   Social Security coverage to workers.

O. NCIA: National Correctional Industries Association.
   Organization contracted by BJA to monitor and review all
   PIECP programs in operation.

P. Prevailing Wage Rates: Payment of inmate wages at a rate
   not less than that paid for work of a similar nature in
   the locality in which the work is to be performed.

Q. Locality : Geographic area impacted by the presence of a
   PIECP CAC operation, as defined by the Georgia Department
   of Labor.

R. Worker Displacement: Projected determination of potential
   adverse impact that PIECP work programs shall likely have
   on the private sector labor workforce, as determined by
   the Georgia Department of Labor, prior to PIECP work
   programs being approved and annually thereafter.

|Functional Area:
SUPPORT SERVICES|Prev. Eff. Date:
1/25/2006|Page 4 of
11|
|---|---|---|
|`Functional Area:`
`SUPPORT SERVICES`|`Effective Date:`
`8/01/07`|`Reference Number:`
`VJ01-0001`|

      Includes job replacement of non-inmate workers by inmate
      workers in the locality in which the PIECP work takes
      place. Private sector jobs may not be transferred to
      PIECP cost accounting centers.

   S. NEPA : National Environmental Policy Act, Pub. L. 91-190,
      83 Stat. 852 (1970)(codified as amended at 42 U.S.C. §§
      4321-4347; implemented under 40 C.F.R. pt. 1500).

   T. NEPA Categorical Exclusion : Documentation indicating that
      a CAC will not affect any sensitive land uses or
      environmental resources. Such documentation will also
      reflect that a CAC is qualified as a categorical
      exclusion and that the program proposal is not a phase or
      segment of a larger program which, when viewed in its
      entirety, would not meet requirements of the PIECP
      categorical exclusion.

V. ATTACHMENTS:

   Attachment 1 - Voluntary Agreement of Participation and Wage
            Deduction

VI. PROCEDURE:

   A. General PIECP Information:

      1. The Department and/or the G.C.I. shall operate and
         administer one or more PIECP work programs for
         voluntary inmate labor to privately owned employers
         in accordance with Title 18 U.S.C. Section 1761.

      2. In operating and administrating PIECP work programs
         the Department and the G.C.I. shall engage in
         private sector partnerships involving inmates for
         the production and/or manufacture of goods that will
         enter interstate commerce.

      3. Goods produced, mined or manufactured by voluntary
         inmate labor pursuant to PIECP work programs may be
         sold to public and private purchasers.

      4. The Department shall be the PIECP Certificate
         Holder, responsible for administering and operating
         PIECP work programs in accordance with Title 18
         U.S.C. Section 1761.

|Functional Area:
SUPPORT SERVICES|Prev. Eff. Date:
1/25/2006|Page 5 of
11|
|---|---|---|
|`Functional Area:`
`SUPPORT SERVICES`|`Effective Date:`
`8/01/07`|`Reference Number:`
`VJ01-0001`|

B. PIECP Program Operation:

   1. All PIECP programs shall follow all applicable
      Federal and State statutes and regulations prior to
      commencing operations.

   2. All PIECP programs shall comply with NEPA and other
      related Federal environmental review requirements
      pursuant to 42 U.S.C. §§ 4321-4347.

   3. Private partner companies shall be required to
      consent to a routine background investigation and
      security clearance for all on-site employees and/or
      project supervisors.

   4. Prior to placement of an inmate in any PIECP
      program, due consideration shall be given to the
      custody and security requirements inherent to that
      program. The Department shall follow classification
      policy and procedures when placing inmates in any
      PIECP program.

   5. It shall be the responsibility of the PIE
      Coordinator to:

      a. Assure that all departmental, county, State,
         and federal laws, rules and regulations are
         adhered to by all CACs.

      b. Annually assess private sector CAC partners’
         compliance with all mandatory PIECP work
         program criteria.

      c. Maintain all documents and records concerning
         PIECP work programs in an orderly manner for
         periodic review.

      d. Annually update participating inmate wage rates
         as determined by the Georgia Department of
         Labor.

      e. Assure that inmate wage deductions, in
         aggregate, shall not exceed eighty percent of
         total gross wages.

|Functional Area:
SUPPORT SERVICES|Prev. Eff. Date:
1/25/2006|Page 6 of
11|
|---|---|---|
|`Functional Area:`
`SUPPORT SERVICES`|`Effective Date:`
`8/01/07`|`Reference Number:`
`VJ01-0001`|

f. Maintain copies of all NEPA documentation for
   timely review. Complete a certified PIECP
   Quarterly Consolidated Statistical Report and
   mailing a copy of the report to NCIA in a
   timely manner.

g. Maintain a copy of each Quarterly Consolidated
   Statistical Report for review.

h. Complete a Notice of Un-designation Form when a
   CAC ceases to operate within PIECP work program
   requirements or becomes defunct. Forward such
   documents to BJA for approval. Maintain copies
   of all such documentation for timely review.

i. Prior to CAC start-up, the PIE Coordinator
   shall obtain written assurances from the
   Georgia Department of Labor that such work
   programs will not:

   1) Result in the displacement of employed
      workers;

   2) Be applied in skills, crafts, or trades in
      which there is a surplus of available
      labor in the locality; or

   3) Impair existing contracts for services.

j. Prior to CAC start-up, the PIE Coordinator
   shall also:

   1) Obtain written documentation from the
      private partner reflecting its agreement
      not to displace its non-inmate employees
      by participation in a PIECP work program.

   2) Consult with representatives of local
      union central bodies or similar labor
      union organizations.

   3) Consult with organizations that may have
      an interest in the trade or skill to be
      performed by PIECP work program inmates.

|Functional Area:
SUPPORT SERVICES|Prev. Eff. Date:
1/25/2006|Page 7 of
11|
|---|---|---|
|`Functional Area:`
`SUPPORT SERVICES`|`Effective Date:`
`8/01/07`|`Reference Number:`
`VJ01-0001`|

         4) Provide detailed information to pertinent
            labor organizations about the contemplated
            CAC, including identification of the scope
            of the program and projected start-up
            date. Inform said organizations that
            consultation is required, and comments are
            invited. Copies of public notices or
            minutes from Department Board meetings may
            serve as an alternative form of
            consultation.

         5) Consult with representatives of local
            businesses that may be economically
            impacted by CAC production by providing
            information about the contemplated CAC.
            Information should include identifying the
            scope of the intended CAC and projected
            start-up date. Inform said
            representatives that consultation is
            required, and comments are invited.
            Copies of public notices or minutes from
            Department Board meetings may serve as an
            alternative form of consultation.

         6) Submit environmental data and information
            regarding proposed CACs, and, if
            necessary, environmental assessments, to
            the BJA for review and approval.

C. Inmate Participation in PIECP Work Programs:

   1. Each inmate participating in a PIECP work program
      must indicate, in writing, that:

      a. He or she agrees voluntarily to participate in
         the PIECP program.

      b. He or she agrees voluntarily, in advance, to
         specific deductions made from gross wages, as
         well as all other financial arrangements made
         as to PIECP work program wages.

   2. Inmate participation in PIECP work programs shall
      not:

|Functional Area:
SUPPORT SERVICES|Prev. Eff. Date:
1/25/2006|Page 8 of
11|
|---|---|---|
|`Functional Area:`
`SUPPORT SERVICES`|`Effective Date:`
`8/01/07`|`Reference Number:`
`VJ01-0001`|

   a. Result in the displacement of employed workers.

   b. Be applied in skills, crafts or trades in which
      there is a surplus of available gainful labor
      in the locality.

   c. Impair existing contracts for services.

3. Inmates participating in PIECP work programs must be
   paid at a rate not less than that paid for work of a
   similar nature in the locality in which the work is
   to be performed.

4. Inmates participating in PIECP work programs shall
   be provided benefits comparable with those made
   available by the federal and/or state government to
   similarly situated private sector employees,
   including workers’ compensation and, under certain
   circumstances, Social Security.

5. Inmates applying for PIECP work programs should meet
   the following minimum requirements:

   a. Two or more years left until release date

   b. Free from disciplinary reports of a high or
      greatest severity level for a period of one
      year from date of application.

   c. Current medical classification commensurate
      with expected work assignment.

   d. Other requirements as may be imposed by the PIE
      Coordinator or at the correctional facility
      where the PIECP work program is located.

6. Preference should be given to inmates who have
   demonstrated a positive work history in Georgia
   Correctional Industries work program and release
   dates within 7 years of application.

7. Preference should be given to inmates who have
   completed or are working towards completing
   requirements for a GED or high school diploma and/or
   program case plan.

|Functional Area:
SUPPORT SERVICES|Prev. Eff. Date:
1/25/2006|Page 9 of
11|
|---|---|---|
|`Functional Area:`
`SUPPORT SERVICES`|`Effective Date:`
`8/01/07`|`Reference Number:`
`VJ01-0001`|

D. Application to PIECP Work Program

   1. Eligible inmates are to fill out a job application
      form provided by the Counselor.

      a. If the inmate applicant meets the criteria for
         eligibility, the Classification Committee shall
         consider the application and forward the
         recommendations to the Warden for approval.

      b. Approved applications will be returned to the
         Classification Committee and forwarded to the
         Private Sector Partner and PIECP Coordinator.

      c. Applicants failing to meet eligibility criteria
         shall receive written notification from the
         Classification Committee, a copy of which shall
         be placed in the inmate’s institutional file.

      d. No application to a PIECP work program shall be
         favorably recommended by the Classification
         Committee unless the Committee is satisfied
         that the inmate’s past performance and
         compliance in program participation indicate
         that:

         1) The inmate does not constitute a security
            risk.

         2) The inmate is capable of abiding by the
            terms and conditions of the program.

         3) The inmate’s immediate staff supervisor
            has acknowledged his or her receipt of the
            inmate’s application. Acknowledgment may
            be accomplished by initialing the inmate’s
            application.

      e. Inmates assigned to any PIECP work program
         shall obey all Departmental rules and
         regulations.

      f. Inmates participating in PIECP work programs
         must sign the “Voluntary Agreement of

|Functional Area:
SUPPORT SERVICES|Prev. Eff. Date:
1/25/2006|Page 10 of
11|
|---|---|---|
|`Functional Area:`
`SUPPORT SERVICES`|`Effective Date:`
`8/01/07`|`Reference Number:`
`VJ01-0001`|

         Participation Form” (Attachment 1) and “Wage
         Deduction Agreement” (Attachment 2).

      g. In an Employer Model CAC, the Private Partner
         shall interview the inmate and make the final
         decision as to employment.

E. Inmate Wages

   1. The PIE Coordinator shall ensure that all inmate
      workers are paid at a rate that is not less than
      that paid for work of a similar nature in the
      locality in which the work is to be done. This wage
      must be verified by the PIE Coordinator through the
      Georgia Department of Labor prior to the initiation
      of PIECP work programs.

   2. The prevailing wage must never be set below federal
      minimum wage, as defined in the Fair Labor Standards
      Act (“FLSA”), 29 U.S.C. § 201 et seq . Payment of
      the Federal minimum wage, however, does not
      automatically achieve compliance with the prevailing
      wage requirement unless the prevailing wage for the
      comparable private sector industries is, in fact,
      the Federal minimum wage.

   3. The PIE Coordinator shall, at a minimum, annually
      re-verify wage rates through the Georgia Department
      of Labor to ensure the Department’s compliance with
      BJA requirements. Wage rate verifications provided
      by the Georgia Department of Labor shall be compared
      to actual rates paid to inmates participating in
      PIECP programs.

   4. Overtime shall be paid at one and one-half times the
      working wage rate on the PIECP work program wage
      scale for work hours more than forty hours per week
      pursuant to the payment standard imposed on private
      sector competition at 29 U.S.C. § 207(a).

   5. Piecework wage rates shall be converted into an
      equivalent hourly wage and shall otherwise meet all
      federal and state requirements.

|Functional Area:
SUPPORT SERVICES|Prev. Eff. Date:
1/25/2006|Page 11 of
11|
|---|---|---|
|`Functional Area:`
`SUPPORT SERVICES`|`Effective Date:`
`8/01/07`|`Reference Number:`
`VJ01-0001`|

   6. In all Employer Model PIECP work programs, the
      private sector partner must make F.I.C.A. deductions
      and payments for each inmate employed.

   7. The PIE Coordinator shall assure that each CAC
      provides all participating worker inmates with
      Worker’s Compensation coverage, Private Worker’s
      Compensation Insurance, or comparable self-funded
      coverage, and F.I.C.A. when required by state or
      federal law.

F. Deductions and Disbursement of Inmate Earnings

   1. Earnings of participating inmates must be paid by
      check directly to the Department and/or the
      G.C.I.and to the inmate.

   2. The Department shall retain an amount to be
      established by the Commissioner for room and board.

   3. Inmates shall be required to place into a savings
      account an amount to be established by the
      Commissioner.

   4. If the inmate has court ordered support or a person
      or persons dependent upon him/her for support, the
      inmate shall be required to remit to such person(s)
      an amount from each paycheck as established by the
      Commissioner.

   5. The inmate shall be required to give, at a minimum,
      ten percent of his/her gross income to the Georgia
      Crime Victim Emergency Fund.

   6. The inmate shall have deducted from his/her check
      all applicable local, county, state and federal
      taxes.

   7. The number of exemptions the inmate may claim for
      withholding taxes must be verified through the
      inmate’s institutional file.

   8. The inmate shall sign a form of understanding
      listing the wage plan and all deductions that shall
      be withheld from gross wages prior to acceptance
      into a PIECP work program.

|Functional Area:
SUPPORT SERVICES|Prev. Eff. Date:
1/25/2006|Page 12 of
11|
|---|---|---|
|`Functional Area:`
`SUPPORT SERVICES`|`Effective Date:`
`8/01/07`|`Reference Number:`
`VJ01-0001`|

      9. Changes in inmate wage deductions or disbursements
         shall require renewed written authorization from
         participating inmates.

      10. Wage deductions, in aggregate, shall not exceed
         eighty percent of gross wages.

VII. RETENTION SCHEDULE:

   Attachment 1 - Upon completion the form is to be placed in the
   Inmate’s Facility Administrative File. Retention of this form
   shall be in accordance with the retention schedule for that
   file.