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.

PRIOR PRINTER'S NO.

2787 PRINTER'STHE NO.GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

37482154 THE2026 GENERALINTRODUCED ASSEMBLYBY OFBRIGGS, PENNSYLVANIAPIELLI, HOUSESANCHEZ, BILLKINKEAD, SessionSHUSTERMAN, JANUARY 21, 2026, HILL-EVANS, CEPEDA-FREYTIZ AND K.HARRIS, REFERRED TO COMMITTEE ON JUDICIARY, JANUARY 22, 2026 AN ACT Amending Title 61 (Prisons and Parole) of No.the Pennsylvania Consolidated Statutes, establishing the Prison Industry Enhancement Authority;

2154 2026 INTRODUCED BY BRIGGS, PIELLI, SANCHEZ, KINKEAD, SHUSTERMAN, AND MADSEN, JANUARY 21, 2026, CEPEDA-FREYTIZ, K.

HARRIS, KHAN 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;

1914.§ 1901.

COLLECTIVE BARGAINING UNITS.

<-- § 1901.

It is further the intent of the General Assembly that 20260HB2154PN3748 - 2 - incarcerated individuals who are deemed eligible in these jobs be able to:

20260HB2154PN2787 - 2 - (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.

The term 20260HB2154PN3748 - 3 - includes a motivational boot camp as defined in section 3903 (relating to definitions).

The term does not include a facility 20260HB2154PN2787 - 3 - used for the detention and confinement of juvenile offenders or a privately operated jail, prison or detention facility.

"Open market." An unrestricted stream of commerce within 20260HB2154PN3748 - 4 - this Commonwealth and outside the borders of this Commonwealth in interstate commerce.

20260HB2154PN2787 - 4 - "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.

(4) Two representatives from organized labor appointed by the Governor from a list submitted by the Statewide labor <-- 20260HB2154PN3748 - 5 - organizations in this Commonwealth.

(5) One county commissioner nominated by the County <--20260HB2154PN2787 - 5 - Commissioners Association of Pennsylvania and 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.

(f) Meetings.--The authority shall meet biannually and upon 20260HB2154PN3748 - 6 - the request of the chair or three or more members.

20260HB2154PN2787 - 6 - 7 (relating to open meetings).

20260HB2154PN3748 - 7 - (3) Adopt procedures for determining whether a prospective private sector prison industry proposed by the 20260HB2154PN2787 - 7 - department or any county correctional agency complies with the requirements of the program and other State law not inconsistent with this chapter.

(a) General rule.--Upon the approval of the authority, the department or a county correctional facility, with the approval 20260HB2154PN3748 - 8 - of its governing board, may enter into contracts with a private business, private enterprise or nonprofit organization to permit 20260HB2154PN2787 - 8 - the employment of incarcerated individuals to perform designated work under the employer model.

8 (relating to fair labor 20260HB2154PN3748 - 9 - standards), 42 U.S.C.

§ 2000a-1 (relating to prohibition against discrimination or segregation required by any law, statute, 20260HB2154PN2787 - 9 - ordinance, regulation, rule or order of a State or State agency), 29 U.S.C.

(a) Requirements enumerated.--A private business, private 20260HB2154PN3748 - 10 - enterprise or nonprofit organization may not enter into a contract under section 1906 (relating to cooperation with 20260HB2154PN2787 - 10 - private industry) unless it demonstrates all of the following:

(3) The private business, private enterprise or 20260HB2154PN3748 - 11 - nonprofit organization has provided proof of security for the payment of workers' compensation as provided in section 305 20260HB2154PN2787 - 11 - 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.

(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.

(a) Wages.--All incarcerated individuals participating in a 20260HB2154PN3748 - 12 - 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 20260HB2154PN2787 - 12 - area in which the activity is performed, as determined after consultation with the Department of Labor and Industry.

(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 20260HB2154PN3748 - 13 - administrative costs for the incarcerated individual in a correctional facility as determined by the department or the governing body of the county correctional agency.

20260HB2154PN2787 - 13 - (iv) An allocation for support,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.

The incarcerated individual employee shall be paid, <-- credited with, or otherwise benefit from, the gross remainder.

(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 20260HB2154PN3748 - 14 - 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.

Nothing in this act shall require the payment of 20260HB2154PN2787 - 14 - disability compensation under section 306(a) or (b) of the Workers' Compensation Act for any period during which the incarcerated individual remains incarcerated.

EMPLOYEES SHALL NOT BE REQUIRED TO PAY ANY TAX OR ASSESSMENT <-- RELATED TO UNEMPLOYMENT INSURANCE FOR INCARCERATED INDIVIDUALS.

The department shall provide the authority with reasonable administrative and clerical support services subject to the 20260HB2154PN3748 - 15 - availability of funds.

(1) To establish a civil cause of action against the 20260HB2154PN2787 - 15 - authority, the Commonwealth or its agencies, officers or employees or the political subdivisions of this Commonwealth and their agencies, officers and employees.