BILL NUMBER: SB 608	CHAPTERED
	BILL TEXT

	CHAPTER  307
	FILED WITH SECRETARY OF STATE  SEPTEMBER 21, 2011
	APPROVED BY GOVERNOR  SEPTEMBER 20, 2011
	PASSED THE SENATE  AUGUST 30, 2011
	PASSED THE ASSEMBLY  AUGUST 22, 2011
	AMENDED IN ASSEMBLY  JUNE 9, 2011
	AMENDED IN ASSEMBLY  JUNE 7, 2011

INTRODUCED BY   Senator DeSaulnier
   (Coauthor: Senator Hancock)

                        FEBRUARY 17, 2011

   An act to amend Section 2807 of the Penal Code, relating to the
Prison Industry Authority.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 608, DeSaulnier. Prison Industry Authority: nonprofit
organizations: prison-made goods.
   Existing law establishes the Prison Industry Authority and
authorizes it to operate industrial, agricultural, and service
enterprises which will provide products and services needed by the
state, or any political subdivision of the state, or by the federal
government, or any department, agency, or corporation of the federal
government, or for any other public use. Existing law provides that
all things authorized to be produced by the authority shall be
purchased by the state, and may be purchased by local governments, to
offer for sale to persons residing in state-operated institutions,
at the prices fixed by the authority.
   Under existing law, it is unlawful for any person to sell, expose
for sale, or offer for sale, any article manufactured by prison
labor, except articles the sale of which is specifically sanctioned
by law.
   This bill would provide that all products and services provided by
the authority may be offered for sale to a tax-exempt nonprofit
organization, provided that the products and services are provided to
public school students at no cost and the nonprofit organization has
entered into a memorandum of understanding with a local education
agency, as defined.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 2807 of the Penal Code is amended to read:
   2807.  (a) The authority is hereby authorized and empowered to
operate industrial, agricultural, and service enterprises which will
provide products and services needed by the state, or any political
subdivision thereof, or by the federal government, or any department,
agency, or corporation thereof, or for any other public use.
Products may be purchased by state agencies to be offered for sale to
inmates of the department and to any other person under the care of
the state who resides in state-operated institutional facilities.
Fresh meat may be purchased by food service operations in state-owned
facilities and sold for onsite consumption.
   (b) All things authorized to be produced under subdivision (a)
shall be purchased by the state, or any agency thereof, and may be
purchased by any county, city, district, or political subdivision, or
any agency thereof, or by any state agency to offer for sale to
persons residing in state-operated institutions, at the prices fixed
by the Prison Industry Authority. State agencies shall make maximum
utilization of these products, and shall consult with the staff of
the authority to develop new products and adapt existing products to
meet their needs.
   (c) All products and services provided by the authority may be
offered for sale to a nonprofit organization, provided that all of
the following conditions are met:
   (1) The nonprofit organization is located in California and is
exempt from taxation under Section 501(c)(3) of Title 26 of the
United States Code.
   (2) The nonprofit organization has entered into a memorandum of
understanding with a local education agency. As used in this section,
"local education agency" means a school district, county office of
education, state special school, or charter school.
   (3) The products and services are provided to public school
students at no cost to the students or their families.