H.B. NO.














relating to hawaii correctional industries.





SECTION 1. The legislature finds that Act 341, Session Laws of Hawaii 1990, codified as chapter 354D, Hawaii Revised Statutes, established the Hawaii correctional industries program, which provides inmates work-related skills to increase their employment prospects upon release. Hawaii correctional industries employs several hundred inmates every year in print, furniture, canteen, and sewing shops that are located inside correctional facilities and through outside work-lines that clean and maintain highways and byways.

Hawaii correctional industries is required by law to be a self-sufficient and self-sustaining agency within the department of public safety. Hawaii correctional industries does not receive any general fund moneys. All proceeds collected by the department of public safety from the sale of goods and services produced by inmates under the Hawaii correctional industries program are deposited into the correctional industries revolving fund which pays for the program's supplies, equipment, and machinery, space to house each work enterprise, salaries and personnel expenses for program staff and administrators, salaries for inmate workers, and all other necessary expenses.

The legislature finds that while Hawaii correctional industries is currently allowed to sell goods and services produced by inmates to the State, the counties, and the federal government, the agency is prohibited by law from selling to the general public, except in limited circumstances. This restriction limits Hawaii correctional industries' ability to fulfill its statutory mandates for financial self-sufficiency and continued growth for the purpose of maximizing inmate job training and employment in a cost-effective manner.

The purpose of this Act is to authorize Hawaii correctional industries to sell goods and services to the general public, which will substantially improve its ability to be financially self-supporting and increase work training opportunities for inmates at no additional cost to the State.

SECTION 2. Section 354D-4, Hawaii Revised Statutes, is amended to read as follows:

"354D-4 Powers and duties of the director. Under the supervision of the director or the director's designee, the administrator of the correctional industries program shall:

(1) Develop programs generating revenue that best sustains their operation and allows for capital investment, and reimburses the general fund, when possible, for the expense of correctional services;

(2) Develop programs providing the maximum level of work and training opportunities for qualified, able-bodied inmates;

(3) Develop programs assuming responsibility for training qualified, able-bodied inmates in general work and specific training skills that increase their employment prospects after release;

(4) Develop programs in which inmates can learn skills used in the construction and other industries, while providing low-cost construction, renovation, and repairs of facilities, grounds, furniture, vehicles, and equipment for private, nonprofit social services, health, or education agencies and programs;

(5) Acquire or purchase equipment, materials, supplies, office space, insurance, and services necessary to establish and maintain programs pursuant to this chapter;

(6) [Use labor services] Conduct industries or enterprises for the employment of qualified, able-bodied inmates in the manufacture or production of [goods] articles and products and the provision of services for sale to the public or that [are] may be needed for the construction, operation, [or] maintenance, or use of any office, department, institution, or agency supported in whole or in part by [the State, the counties,] a state and its political subdivisions or the federal government;

[(7) Sell all goods and services to the State, the counties, or the federal government;

(8)] (7) Sell uniforms and uniform accessories to state-employed adult corrections officers;

[(9)](8) Purchase, lease, trade, exchange, acquire, and maintain personal property; and

[(10)](9) Accept grants or loans from the State, the counties, or the federal government."

SECTION 3. Section 354D-15, Hawaii Revised Statutes, is repealed.

["[354D-15] Sale of goods. It shall be unlawful to sell, or offer for sale, on the open market of this State, any articles or products manufactured or produced, wholly or in part, under this chapter. Goods or services produced by venture agreements under section 354D-13 shall be exempt from this limitation."]

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.








Report Title:

Hawaii Correctional Industries; Open Market Sales



Authorizes Hawaii Correctional Industries to sell products and services on the open market to the general public.




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