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PRIOR PRINTER'S NO. 2787 PRINTER'S NO. 3748
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2154
Session of
2026
INTRODUCED BY BRIGGS, PIELLI, SANCHEZ, KINKEAD, SHUSTERMAN,
FRANKEL, McNEILL, HILL-EVANS, CEPEDA-FREYTIZ, K. HARRIS, KHAN
AND MADSEN, JANUARY 21, 2026
AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES,
JULY 1, 2026
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.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 61 of the Pennsylvania Consolidated
Statutes is amended by adding a chapter to read:
CHAPTER 19
PRISON INDUSTRY ENHANCEMENT AUTHORITY
Sec.
1901. Scope of chapter.
1902. Intent.
1903. Definitions.
1904. Prison Industry Enhancement Authority.
1905. Powers and duties of authority.
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1906. Cooperation with private industry.
1907. Minimum requirements of private sector prison industry.
1908. Wages and deductions.
1909. Administrative support.
1910. Immunities not waived.
1911. Civil actions.
1912. Construction of chapter.
1913. Monetary limitations.
1914. COLLECTIVE BARGAINING UNITS.
§ 1901. Scope of chapter.
This chapter relates to the Prison Industry Enhancement
Authority.
§ 1902. Intent.
It is the intent of the General Assembly that joint ventures
between correctional facilities and private industry be
established so that incarcerated individuals in correctional
facilities be productively engaged. Private industry in this
Commonwealth will gain access to an expanded labor force while
not displacing job opportunities for civilian labor in the
community. Nothing in this chapter shall be construed to
authorize the privatization of correctional facilities in this
Commonwealth. It is further the intent of the General Assembly
to structure the use and availability of incarcerated individual
labor and regulate its use to assure that incarcerated
individual labor will not be used to replace work opportunities
for unemployed or underemployed residents of this Commonwealth
or to create competitive advantages for businesses participating
in the prison labor programs. The private sector prison industry
will not result in bargaining agreements for civilian laborers.
It is further the intent of the General Assembly that
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incarcerated individuals who are deemed eligible in these jobs
be able to:
(1) Develop positive work habits that will assist them
in securing and holding gainful employment in the public and
private sectors subsequent to their release from
incarceration.
(2) Pay a reasonable portion of the room and board in a
correctional facility.
(3) Accept responsibility for the consequences of their
actions by compensating victims of crime through deductions
from their earnings.
(4) Provide financial assistance to their dependents,
thus strengthening and promoting family ties while reducing
the likelihood that their families may eventually have to
rely upon public assistance.
§ 1903. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Authority." The Prison Industry Enhancement Authority
established in this chapter.
"Certification." The process where an applicant demonstrates
assurances of authority and compliance with mandatory program
criteria and describes key project elements as required by
Federal law.
"Correctional facility." A jail, prison or detention
facility operated by the Commonwealth or by a county or jointly
by more than one county and used for the detention and
confinement of persons convicted and under sentence for
violations of the criminal laws of this Commonwealth. The term
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includes a motivational boot camp as defined in section 3903
(relating to definitions). The term does not include a facility
used for the detention and confinement of juvenile offenders or
a privately operated jail, prison or detention facility.
"Cost accounting center." A specific industry program
operated under the private sector Prison Industry Enhancement
Certification Program.
"County commissioners." Elected county commissioners or the
equivalent governing body of any county, regardless of form of
government.
"Director of correctional industries." An individual who has
authority to operate and manage the Prison Industry Enhancement
Certification Program under the direct supervision of the
Secretary of Corrections and the Prison Industry Enhancement
Authority.
"Employer model." An arrangement under which a private
business, private enterprise or nonprofit entity owns and
operates the cost accounting center with limited State or local
government involvement by controlling the hiring, firing,
training, supervision and payment of the incarcerated individual
workforce, and the department assumes no major role in the
industry operation, does not direct production and exercises
minimum control over incarcerated individual labor performance.
"Incarcerated individual." An individual who has been
convicted of a crime and is serving a sentence in a correctional
facility.
"Local workforce development area." A geographical area as
defined in section 501(a) of the act of December 18, 2001
(P.L.949, No.114), known as the Workforce Development Act.
"Open market." An unrestricted stream of commerce within
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this Commonwealth and outside the borders of this Commonwealth
in interstate commerce.
"Private business," "private enterprise" or "nonprofit
entity." An individual, firm, partnership, corporation or other
lawful commercial enterprise or nonprofit organization that,
under this chapter, operates a private sector prison industry
and employs State or county incarcerated individuals.
"Private sector prison industry." A private business,
private enterprise or nonprofit entity that produces goods or
services employing incarcerated individual labor in or on the
property of a State or county correctional facility under the
employer model.
"Program." The Prison Industry Enhancement Certification
Program established under Federal law.
"Superintendent." The person in primary charge of the
administration and managers of a State correctional facility.
"Warden." The person in primary charge of the administration
and management of a county correctional institution or
multicounty correctional facility.
§ 1904. Prison Industry Enhancement Authority.
(a) Establishment.--There is established an authority to be
known as the Prison Industry Enhancement Authority.
(b) Composition.--The authority shall consist of the
following members:
(1) The secretary or a designee who shall serve as
chair.
(2) The Secretary of Labor and Industry or a designee.
(3) The director of correctional industries.
(4) Two representatives from organized labor appointed
by the Governor from a list submitted by the Statewide labor
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organizations in this Commonwealth .
(5) One county commissioner nominated by the County
Commissioners Association of Pennsylvania and appointed by
the Governor.
(6) One warden appointed by the Governor.
(7) One representative TWO REPRESENTATIVES from the
business community appointed by the Governor from a list
submitted by the business community .
(8) One superintendent appointed by the secretary.
(9) The Victim Advocate or a designee.
(c) Terms.--Terms for members shall be as follows:
(1) Three years for the county commissioner.
(2) Two years for the representative from the business
community.
(3) Two years for the warden and the superintendent.
(4) Two years for the representatives from organized
labor.
(5) The secretary, the Secretary of Labor and Industry,
the director of correctional industries and the
representative from the Office of Victim Advocate shall serve
continuously.
(d) Reappointment.--A member of the authority may be
eligible for reappointment. A member shall continue to serve
after the expiration of the member's term until a successor is
appointed.
(e) Vacancies.--A vacancy shall be filled by the original
appointing authority for the remainder of the unexpired term. A
vacancy shall be filled within 90 days of the occurrence of the
vacancy.
(f) Meetings.--The authority shall meet biannually and upon
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the request of the chair or three or more members. All meetings
of the authority shall be held in accordance with 65 Pa.C.S. Ch.
7 (relating to open meetings).
(g) Quorum.--For the transaction of general business of the
authority, four members shall constitute a quorum. A majority
vote of the members present will be necessary for a private
sector prison industry application to be approved. Each approval
of a private sector prison industry application shall be made by
a vote at a duly constituted meeting of the authority.
(h) Compensation.--Notwithstanding any other provision of
law, members shall receive no compensation for their services on
the authority, but shall be reimbursed by the department from
the department's Manufacturing Fund under section 3122 (relating
to Manufacturing Fund) for reasonable and necessary expenses.
(i) Administration of authority.--The department shall
furnish administrative support to the authority. Legal counsel
for the authority shall be furnished by the Office of General
Counsel.
§ 1905. Powers and duties of authority.
The authority shall have the powers and duties to:
(1) Authorize the department to apply to the United
States Department of Justice, Bureau of Justice Assistance or
any successors for certification, as an umbrella authority,
to assist other units of government seeking to participate in
the program.
(2) Act as an intermediary between the department, and
its designees, and the United States Department of Justice,
Bureau of Justice Assistance or any successors in complying
with the mandatory criteria and program requirements for
private sector prison industries in this Commonwealth.
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(3) Adopt procedures for determining whether a
prospective private sector prison industry proposed by the
department or any county correctional agency complies with
the requirements of the program and other State law not
inconsistent with this chapter.
(4) Approve or disapprove proposals submitted to the
authority from the department, or its designees, for private
sector prison industry for inclusion or continuation in the
program.
(5) Monitor the department and its designees to ensure
continuing compliance with this chapter and Federal and State
law and provide proper notification of violations and
proposed actions taken to ensure compliance and remediation.
(6) Designate which services to be performed or articles
manufactured or assembled by incarcerated individuals are
conforming to the program regulations and can be sold on the
open market.
(7) Monitor an approved private sector prison industry
to ensure that it is complying with applicable labor
standards specified in section 1906(c) (relating to
cooperation with private industry) and any other applicable
Federal or State law.
(8) Cancel any private sector prison industry where the
authority determines that the private sector prison industry
has not complied with the requirements of this chapter or has
violated another Federal or State law applicable to work
performed under this chapter.
§ 1906. Cooperation with private industry.
(a) General rule.--Upon the approval of the authority, the
department or a county correctional facility, with the approval
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of its governing board, may enter into contracts with a private
business, private enterprise or nonprofit organization to permit
the employment of incarcerated individuals to perform designated
work under the employer model. The department shall remain
responsible for the custody of individuals incarcerated in a
State correctional institution who are working for a cost
accounting center operated by the department. The county shall
remain responsible for the custody of individuals incarcerated
in a county correctional institution who are working for a cost
accounting center operated by the county. The contractual
arrangement authorized by this chapter shall not create any
third-party rights in any incarcerated individual.
(b) Status of incarcerated individual.--No incarcerated
individual compensated for participation in the program shall be
considered to be an employee of the Commonwealth or the county
nor shall the incarcerated individual be afforded the rights and
privileges of Commonwealth or county employees. Where a private
business, private enterprise or nonprofit organization is
directly employing an incarcerated individual under the employer
model the private business, private enterprise or nonprofit
organization shall be solely responsible and liable for
compliance with all applicable labor standards specified in this
chapter or in other applicable Federal or State laws. No
incarcerated individual may be employed under this chapter for
more than 40 hours in any workweek.
(c) Certain rights preserved.--Nothing contained in this
section shall be deemed to restore, in whole or in part, the
civil rights of participating incarcerated individuals, except
that participating incarcerated individuals shall be afforded
the protection of 29 U.S.C. Ch. 8 (relating to fair labor
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standards), 42 U.S.C. § 2000a-1 (relating to prohibition against
discrimination or segregation required by any law, statute,
ordinance, regulation, rule or order of a State or State
agency), 29 U.S.C. Ch. 15 (relating to occupational safety and
health), 42 U.S.C. Ch. 76 (relating to age discrimination in
federally assisted programs), 42 U.S.C. Ch. 126 (relating to
equal opportunity for individuals with disabilities), the act of
June 2, 1915 (P.L.736, No.338), known as the Workers'
Compensation Act, the act of October 27, 1955 (P.L.744, No.222),
known as the Pennsylvania Human Relations Act, the act of July
14, 1961 (P.L.637, No.329), known as the Wage Payment and
Collection Law, and the act of January 17, 1968 (P.L.11, No.5),
known as The Minimum Wage Act of 1968, solely to the extent that
they apply to the private sector prison industry employment
relationship.
(d) Consent to deduction.--An incarcerated individual may
participate in the program established under this chapter only
on a voluntary basis and must consent, in advance, to the
specific deductions from gross wages, as specified under section
1908 (relating to wages and deductions). An incarcerated
individual performing services for a cost accounting center
shall indicate, in writing, that the incarcerated individual:
(1) agrees voluntarily to participate in the cost
accounting center activities; and
(2) agrees voluntarily, and in advance, to specific
deductions made from gross wages, as well as all other
financial arrangements made as to wages earned through
participation in the cost accounting center's activities.
§ 1907. Minimum requirements of private sector prison industry.
(a) Requirements enumerated.--A private business, private
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enterprise or nonprofit organization may not enter into a
contract under section 1906 (relating to cooperation with
private industry) unless it demonstrates all of the following:
(1) The private business, private enterprise or
nonprofit organization, the department or the governing
authority of the county correctional system, whichever is
applicable, consulted with local union central bodies and
with local businesses that may be affected by the private
business, private enterprise or nonprofit organization
participating in the program.
(2) The private business, private enterprise or
nonprofit organization has submitted information in a form
and manner approved by the authority that its participation
in the program will not:
(i) demonstrably result in the displacement of
employees in the local workforce development area;
(ii) be applied in skills, crafts or trades in which
there is a surplus of available gainful labor in the
locality; or
(iii) impair existing contracts for goods and
services. A contract may not be executed by or with a
private sector prison industry employer that will permit
the employment of incarcerated individuals in the same
job classifications or similar work duties or assignments
as individuals who are on strike as a result of a labor
dispute as defined in the act of June 1, 1937 (P.L.1168,
No.294), known as the Pennsylvania Labor Relations Act,
or who are otherwise involved in a labor dispute as that
term is defined by Federal law, including a lockout.
(3) The private business, private enterprise or
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nonprofit organization has provided proof of security for the
payment of workers' compensation as provided in section 305
of the act of June 2, 1915 (P.L.736, No.338), known as the
Workers' Compensation Act, for work to be performed under the
contract. Security for the payment of workers' compensation
shall be maintained throughout any program authorized under
this chapter.
(4) The work to be performed under the contract is not
covered by DOES NOT INCLUDE THE PERFORMANCE OF WORK
TRIGGERING COVERAGE UNDER the act of August 15, 1961
(P.L.987, No.442), known as the Pennsylvania Prevailing Wage
Act, or the act of October 24, 2012 (P.L.1209, No.151), known
as the Child Labor Act.
(5) The private business, private enterprise or
nonprofit organization has provided proof that it has not
been found in the last 10 years to be in violation of any law
listed in section 1906(c).
(6) Any activity undertaken by the private business,
private enterprise or nonprofit organization under the
contract shall be in compliance with 42 U.S.C. Ch. 55
(relating to National Environmental Policy).
(b) Priorities.--When reviewing a potential private sector
prison industry, the authority shall consider the impact on the
employment of persons in the private business sector of this
Commonwealth and consider establishing joint ventures that will
retain or reclaim jobs in this Commonwealth, support emerging
Commonwealth industries or create jobs for a deficient labor
market.
§ 1908. Wages and deductions.
(a) Wages.--All incarcerated individuals participating in a
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cost accounting center's activities shall be compensated at a
rate that is not less than the wages paid for work of a similar
nature in private industry in the local workforce development
area in which the activity is performed, as determined after
consultation with the Department of Labor and Industry. The
Department of Labor and Industry shall base its determination on
estimated occupational data available for the local workforce
development area. An incarcerated individual may not receive
compensation that is less than the minimum wage established by
Federal or State law, whichever is higher, except as specified
in Federal and State law. Wages shall be paid no less frequently
than biweekly. Any wages remaining after the deductions under
subsection (b) shall be maintained by the appropriate
correctional authority in a fund in the incarcerated
individual's name. The amount remaining shall be returned to the
incarcerated individual at the time of release. The correctional
authority may permit the incarcerated individual to draw a
portion of the money for other purposes deemed to be appropriate
by the correctional authority.
(b) Deductions.--
(1) An incarcerated individual shall have deducted from
gross compensation received:
(i) Federal, State and local taxes.
(ii) Contributions UNPAID CONTRIBUTIONS to the Crime
Victim Services and Compensation Fund or equivalent fund
established by law to compensate victims of crime and
court-ordered victim restitution, which contributions
combined may not be less than 5% nor more than 20% of the
incarcerated individual's gross wages.
(iii) A reasonable portion of room and board and
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administrative costs for the incarcerated individual in a
correctional facility as determined by the department or
the governing body of the county correctional agency.
(iv) An allocation for support , INCLUDING CHILD
SUPPORT, SPOUSAL SUPPORT OR ALIMONY, of the incarcerated
individual's immediate family pursuant to State statute,
court order or agreement by the incarcerated individual.
(v) All deductions provided for in subparagraphs
(i), (ii), (iii) and (iv), in their entirety, may not
exceed 70% of an incarcerated individual's gross wages.
The incarcerated individual employee shall be paid,
credited with, or otherwise benefit from, the gross
remainder. The remaining gross amount may be directed to
incarcerated individuals' expense accounts, or to the
settling of the incarcerated individuals' legal
obligations, including the payment of court-ordered fines
and restitution.
(2) No other deductions from gross compensation are
permitted unless otherwise authorized under Federal or State
law. Deductions from gross pay shall not in the aggregate
exceed 80% of gross wages. Each incarcerated individual
employed shall receive a written statement of the description
and amount of each deduction.
(VI) NO OTHER DEDUCTIONS FROM GROSS COMPENSATION ARE
PERMITTED UNLESS OTHERWISE AUTHORIZED UNDER FEDERAL OR
STATE LAW. TOTAL DEDUCTIONS FROM GROSS PAY SHALL NOT IN
THE AGGREGATE EXCEED 80% OF GROSS WAGES.
(2) THE INCARCERATED INDIVIDUAL EMPLOYEE SHALL BE PAID,
CREDITED WITH, OR OTHERWISE BENEFIT FROM, THE GROSS
REMAINDER. THE REMAINING GROSS AMOUNT MAY BE DIRECTED TO
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INCARCERATED INDIVIDUALS' EXPENSE ACCOUNTS, OR TO THE
SETTLING OF THE INCARCERATED INDIVIDUALS' LEGAL OBLIGATIONS,
INCLUDING THE PAYMENT OF COURT-ORDERED FINES AND RESTITUTION.
(3) EACH INCARCERATED INDIVIDUAL EMPLOYED SHALL RECEIVE
A WRITTEN STATEMENT OF THE DESCRIPTION AND AMOUNT OF EACH
DEDUCTION.
(c) Workers' compensation.--The provision of benefits and
compensation to incarcerated individuals for injuries sustained
in the course of employment provided for under this chapter
shall be subject to any limitations specified under the act of
June 2, 1915 (P.L.736, No.338), known as the Workers'
Compensation Act, except that an approved private sector prison
industry shall be liable for compensation under the Workers'
Compensation Act for any work-related injuries resulting from
work performed under this chapter notwithstanding section
306(a.1) of the Workers' Compensation Act, relating to prison
labor. Nothing in this act shall require the payment of
disability compensation under section 306(a) or (b) of the
Workers' Compensation Act for any period during which the
incarcerated individual remains incarcerated. Incarcerated
individuals and their dependents are precluded from filing
claims against the Uninsured Employers Guaranty Fund for
injuries sustained for work performed under this chapter.
(d) Unemployment insurance.--An incarcerated individual is
not qualified to receive unemployment insurance payments.
EMPLOYEES SHALL NOT BE REQUIRED TO PAY ANY TAX OR ASSESSMENT
RELATED TO UNEMPLOYMENT INSURANCE FOR INCARCERATED INDIVIDUALS.
§ 1909. Administrative support.
The department shall provide the authority with reasonable
administrative and clerical support services subject to the
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availability of funds.
§ 1910. Immunities not waived.
No provision of this chapter shall waive or impair any
sovereign, government, qualified or other immunity from or
defense against suit available to the Commonwealth and its
departments, boards, officers, employees and agents or the
political subdivisions of this Commonwealth and their agencies,
officers and employees.
§ 1911. Civil actions.
An incarcerated individual may not bring a civil action
before any court, independent commission or authority of this
Commonwealth against the authority, the Commonwealth or its
agencies, officers or employees or the political subdivisions of
this Commonwealth and their agencies, officers and employees
based upon a contractual arrangement authorized under this
chapter.
§ 1912. Construction of chapter.
No provision of this chapter may be construed:
(1) To establish a civil cause of action against the
authority, the Commonwealth or its agencies, officers or
employees or the political subdivisions of this Commonwealth
and their agencies, officers and employees.
(2) To establish an enforceable right in any person to
obtain or retain employment in the private sector prison
industry.
(3) To require the department or any county to propose
or permit a private sector prison industry within the
correctional facility.
(4) To affect or change the method or manner of
incarcerated individual work assignments within a
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correctional facility or the statutory authority to compel
the labor on behalf of the Commonwealth or any political
subdivision thereof.
§ 1913. Monetary limitations.
There shall be no monetary limitations on the amount of goods
and services supplied to the open market unless otherwise stated
by the authority.
§ 1914. COLLECTIVE BARGAINING UNITS.
THE FOLLOWING SHALL APPLY:
(1) A PARTICIPATING INCARCERATED INDIVIDUAL SHALL NOT BE
CONSIDERED A MEMBER OF OR COVERED BY ANY COLLECTIVE
BARGAINING AGREEMENT.
(2) A PARTICIPATING INCARCERATED INDIVIDUAL SHALL HAVE
NO OBLIGATION TO MAKE PAYMENTS TO BE A COLLECTIVE BARGAINING
UNIT.
Section 2. All acts and parts of acts are repealed insofar
as they are inconsistent with the addition of 61 Pa.C.S. Ch. 19.
Section 3. This act shall take effect in 120 days.
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