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Bill

HB 2154

An Act amending Title 61 (Prisons and Parole) of the Pennsylvania Consolidated Statutes, establishing the Prison Industry Enhancement Authority; providing for employment of incarcerated individuals by private industry and for subcontracts with correctional agencies; establishing guidelines for incarcerated individual compensation; and providing for location of private sector prison industry.

2025-2026 Regular Session Introduced by Tim Briggs and 9 co-sponsors

Creates the Prison Industry Enhancement Authority to coordinate private-sector employment programs for incarcerated individuals, with oversight to ensure no facility privatization

Removed from table
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Bill Summary · HB 2154

Summary of HB 2154 (2025-2026) – Prison Industry Enhancement Authority (Pennsylvania)

Purpose and intent

  • Establishes the Prison Industry Enhancement Authority to promote joint ventures between correctional facilities and private industry.
  • The goal is to productively engage incarcerated individuals in work, expand the labor pool for private industry, and support victim restitution and family financial support, while explicitly avoiding privatizing correctional facilities or displacing local workers.

Key provisions and changes

  • Creation of the Prison Industry Enhancement Authority (PIEA): A new state authority within Title 61 to oversee private sector prison industry programs.
  • Authority composition and governance (Section 1904):
    • Members include: chair (Secretary or designee), labor secretary or designee, director of correctional industries, two organized labor representatives, one county commissioner, one warden, one private-sector/business representative, one superintendent, and the Victim Advocate or designee.
    • Terms range from 2-3 years with continuous service for several members; meetings biannually; quorum of four; no compensation for members but reimbursement of expenses.
  • Scope and definitions (Sections 1901–1903): Defines terms (e.g., incarcerated individual, cost accounting center, private sector prison industry, employer model) and clarifies that no privatization of correctional facilities is authorized.
  • Authority powers and duties (Section 1905):
    • Certify and coordinate with federal programs (e.g., DOJ, Bureau of Justice Assistance).
    • Approve or disapprove private sector proposals; monitor compliance with laws; designate which production activities are eligible for open market sale.
    • Monitor private sectors for labor standards compliance and terminate noncompliant programs.
  • Private industry cooperation and employer model (Section 1906):
    • Contracts may be formed with private businesses or nonprofits to employ incarcerated individuals under the employer model.
    • Incarcerated individuals remain under correctional custody; not considered Commonwealth/County employees; private employers assume labor-law compliance responsibility; cap of 40 hours per week.
    • Voluntary participation; pre-deduction written consent from participants.
  • Minimum requirements for private sector partners (Section 1907):
    • Requires community and local business/union consultation.
    • Must show no displacement or adverse impact on local labor markets; cannot undermine existing contracts or employ striking workers.
    • Must provide workers’ compensation security and comply with environmental reviews; no violations in the past 10 years of listed laws.
    • Prioritize ventures that retain jobs, support emerging Commonwealth industries, or address deficient labor markets.
  • Wages and deductions (Section 1908):
    • Incarcerated workers must be paid at least the local market rate for similar private-sector work, and at least the applicable minimum wage.
    • Deductions: taxes, 5–20% for victim services/restitution, room and board/administrative costs, family support, and other lawful deductions not to exceed 70% of gross wages (with 80% cap on total deductions). Remaining funds go to the inmate or to approved accounts; balance may be used to settle legal obligations.
    • Wages are biweekly; earnings may be held and later returned upon release.
    • Workers’ compensation: program carries liability for work-related injuries; does not require post-incarceration disability benefits; no access to Uninsured Employers Guaranty Fund for injuries on the job.
    • No unemployment insurance eligibility for incarcerated workers.
  • Administrative support and immunities (Sections 1909, 1910): Department provides support; state immunity protections preserved.
  • Civil actions and construction (Sections 1911–1912): Incarcerated individuals cannot sue over these private sector arrangements; no private right to employment is created; program details maintain agency control over work assignments.
  • Monetary considerations (Section 1913): No monetary caps on goods/services in the open market unless specified by the authority.
  • Effective date: The act would take effect 120 days after passage.

Who would be affected

  • Incarcerated individuals eligible for participation in private-sector prison industry programs.
  • State and county correctional facilities hosting cost accounting centers.
  • Private businesses, private enterprises, and nonprofit entities partnering to employ incarcerated workers.
  • Local labor markets and unions (due to consultative requirements and potential job impact).
  • Victims’ services funding through deductions from wages.

Procedural/timeline aspects

  • Referred to Judiciary Committee; amended and advanced through standard Pennsylvania legislative process.
  • Effective date is 120 days post-enactment.
  • Administrative framework includes ongoing oversight by the PI EA with biannual meetings and periodic approvals of private-sector proposals.

Compiled from official sources — confirm details with the bill’s official record.

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