HB262 Alabama 2011 Session

Updated Feb 27, 2026

High Interest

Summary

Primary Sponsor: Randy Davis
Republican
Co-Sponsors: Mac Buttram Becky Nordgren Mike Hubbard April Weaver Lynn Greer Howard Sanderford Jim McClendon Jay Love Ken Johnson
Session: Regular Session 2011
Title: Corrections Department, prison industries, sale of products further provided for, operation of joint venture with private businesses, authorized, Secs. 14-7-7, 14-7-22 am'd.
Summary: HB262 allows the Department of Corrections to partner with private businesses to run on-site work programs for inmates as part of rehabilitation, with wages and program rules set by the department.
What This Bill Does
The Department of Corrections may contract with private individuals or companies to create joint plants or businesses on DOC property or in prison facilities to employ inmates. Participation is voluntary, with inmates earning at least the prevailing private-sector wage; earnings are paid to the department and then allocated, with up to 40% withheld for costs and court-ordered restitution before the rest goes to the inmate’s account. Products and services produced under these contracts will be marketed by the private partners, not the department, and contracts must be competitively bid (with some leasing arrangements exempt from certain procurement rules). The program must comply with federal rules and does not make inmates state employees; the act takes effect immediately after governor approval, and existing prison education funding remains in place.

Who It Affects
Inmates: may voluntarily participate in on-site work programs, earn wages (not less than the private sector average for similar work), have earnings managed by the Department of Corrections, and may have up to 40% of earnings withheld for costs and restitution before the remainder is credited to their department account; they are not considered state employees and do not receive employee benefits.
Private industry/contractors: can operate on DOC property or at prison facilities, hire inmate labor for manufacturing or service provision, market the produced goods, and must bid contracts competitively (with some leasing arrangements exempt from certain bid laws).

Key Provisions
Authorizes the Department of Corrections to contract with private individuals, enterprises, partnerships, or corporations to develop on-site joint plants, factories, or commercial enterprises using inmate labor.
Participation by inmates is voluntary and conditioned on being informed about employment terms; inmates must earn at least the prevailing wage for similar private-sector work; earnings are paid to the department and disbursed under department rules, with up to 40% withheld for costs and restitution, and the remainder credited to the inmate’s account.
Programs must comply with the Federal Prison Industries Enhancement Act (18 U.S.C. §1761(c)); inmates are not state employees and do not receive state employee benefits.
All contracts or agreements must be competitively bid, though rental/lease arrangements may be exempt from some bid laws; the department and contracting parties are exempt from certain penalties.
Products produced under these contracts are marketed by the private party, not the department; the act preserves existing prison education programs and funding for two-year college prison education programs; the act becomes effective immediately after governor’s approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Corrections Department