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.

PRINTER'S NO.   2787

                     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 AND K.HARRIS,
        JANUARY 21, 2026

     REFERRED TO COMMITTEE ON JUDICIARY, JANUARY 22, 2026


                                     AN ACT
 1   Amending Title 61 (Prisons and Parole) of the Pennsylvania
 2      Consolidated Statutes, establishing the Prison Industry
 3      Enhancement Authority; providing for employment of
 4      incarcerated individuals by private industry and for
 5      subcontracts with correctional agencies; establishing
 6      guidelines for incarcerated individual compensation; and
 7      providing for location of private sector prison industry.
 8      The General Assembly of the Commonwealth of Pennsylvania
 9   hereby enacts as follows:
10      Section 1.     Title 61 of the Pennsylvania Consolidated
11   Statutes is amended by adding a chapter to read:
12                                 CHAPTER 19
13                   PRISON INDUSTRY ENHANCEMENT AUTHORITY
14   Sec.
15   1901.   Scope of chapter.
16   1902.   Intent.
17   1903.   Definitions.
18   1904.   Prison Industry Enhancement Authority.
19   1905.   Powers and duties of authority.
20   1906.   Cooperation with private industry.
 1   1907.   Minimum requirements of private sector prison industry.
 2   1908.   Wages and deductions.
 3   1909.   Administrative support.
 4   1910.   Immunities not waived.
 5   1911.   Civil actions.
 6   1912.   Construction of chapter.
 7   1913.   Monetary limitations.
 8   § 1901.   Scope of chapter.
 9      This chapter relates to the Prison Industry Enhancement
10   Authority.
11   § 1902.   Intent.
12      It is the intent of the General Assembly that joint ventures
13   between correctional facilities and private industry be
14   established so that incarcerated individuals in correctional
15   facilities be productively engaged. Private industry in this
16   Commonwealth will gain access to an expanded labor force while
17   not displacing job opportunities for civilian labor in the
18   community. Nothing in this chapter shall be construed to
19   authorize the privatization of correctional facilities in this
20   Commonwealth. It is further the intent of the General Assembly
21   to structure the use and availability of incarcerated individual
22   labor and regulate its use to assure that incarcerated
23   individual labor will not be used to replace work opportunities
24   for unemployed or underemployed residents of this Commonwealth
25   or to create competitive advantages for businesses participating
26   in the prison labor programs. The private sector prison industry
27   will not result in bargaining agreements for civilian laborers.
28   It is further the intent of the General Assembly that
29   incarcerated individuals who are deemed eligible in these jobs
30   be able to:

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 1             (1)   Develop positive work habits that will assist them
 2      in securing and holding gainful employment in the public and
 3      private sectors subsequent to their release from
 4      incarceration.
 5             (2)   Pay a reasonable portion of the room and board in a
 6      correctional facility.
 7             (3)   Accept responsibility for the consequences of their
 8      actions by compensating victims of crime through deductions
 9      from their earnings.
10             (4)   Provide financial assistance to their dependents,
11      thus strengthening and promoting family ties while reducing
12      the likelihood that their families may eventually have to
13      rely upon public assistance.
14   § 1903.    Definitions.
15      The following words and phrases when used in this chapter
16   shall have the meanings given to them in this section unless the
17   context clearly indicates otherwise:
18      "Authority."     The Prison Industry Enhancement Authority
19   established in this chapter.
20      "Certification."       The process where an applicant demonstrates
21   assurances of authority and compliance with mandatory program
22   criteria and describes key project elements as required by
23   Federal law.
24      "Correctional facility."      A jail, prison or detention
25   facility operated by the Commonwealth or by a county or jointly
26   by more than one county and used for the detention and
27   confinement of persons convicted and under sentence for
28   violations of the criminal laws of this Commonwealth. The term
29   includes a motivational boot camp as defined in section 3903
30   (relating to definitions). The term does not include a facility

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 1   used for the detention and confinement of juvenile offenders or
 2   a privately operated jail, prison or detention facility.
 3      "Cost accounting center."     A specific industry program
 4   operated under the private sector Prison Industry Enhancement
 5   Certification Program.
 6      "County commissioners."     Elected county commissioners or the
 7   equivalent governing body of any county, regardless of form of
 8   government.
 9      "Director of correctional industries."     An individual who has
10   authority to operate and manage the Prison Industry Enhancement
11   Certification Program under the direct supervision of the
12   Secretary of Corrections and the Prison Industry Enhancement
13   Authority.
14      "Employer model."     An arrangement under which a private
15   business, private enterprise or nonprofit entity owns and
16   operates the cost accounting center with limited State or local
17   government involvement by controlling the hiring, firing,
18   training, supervision and payment of the incarcerated individual
19   workforce, and the department assumes no major role in the
20   industry operation, does not direct production and exercises
21   minimum control over incarcerated individual labor performance.
22      "Incarcerated individual."     An individual who has been
23   convicted of a crime and is serving a sentence in a correctional
24   facility.
25      "Local workforce development area."     A geographical area as
26   defined in section 501(a) of the act of December 18, 2001
27   (P.L.949, No.114), known as the Workforce Development Act.
28      "Open market."   An unrestricted stream of commerce within
29   this Commonwealth and outside the borders of this Commonwealth
30   in interstate commerce.

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 1      "Private business," "private enterprise" or "nonprofit
 2   entity."    An individual, firm, partnership, corporation or other
 3   lawful commercial enterprise or nonprofit organization that,
 4   under this chapter, operates a private sector prison industry
 5   and employs State or county incarcerated individuals.
 6      "Private sector prison industry."     A private business,
 7   private enterprise or nonprofit entity that produces goods or
 8   services employing incarcerated individual labor in or on the
 9   property of a State or county correctional facility under the
10   employer model.
11      "Program."     The Prison Industry Enhancement Certification
12   Program established under Federal law.
13      "Superintendent."     The person in primary charge of the
14   administration and managers of a State correctional facility.
15      "Warden."     The person in primary charge of the administration
16   and management of a county correctional institution or
17   multicounty correctional facility.
18   § 1904.    Prison Industry Enhancement Authority.
19      (a)     Establishment.--There is established an authority to be
20   known as the Prison Industry Enhancement Authority.
21      (b)     Composition.--The authority shall consist of the
22   following members:
23             (1)   The secretary or a designee who shall serve as
24      chair.
25             (2)   The Secretary of Labor and Industry or a designee.
26             (3)   The director of correctional industries.
27             (4)   Two representatives from organized labor appointed
28      by the Governor from a list submitted by the Statewide labor
29      organizations in this Commonwealth.
30             (5)   One county commissioner nominated by the County

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 1      Commissioners Association of Pennsylvania and appointed by
 2      the Governor.
 3            (6)   One warden appointed by the Governor.
 4            (7)   One representative from the business community
 5      appointed by the Governor from a list submitted by the
 6      business community.
 7            (8)   One superintendent appointed by the secretary.
 8            (9)   The Victim Advocate or a designee.
 9      (c)     Terms.--Terms for members shall be as follows:
10            (1)   Three years for the county commissioner.
11            (2)   Two years for the representative from the business
12      community.
13            (3)   Two years for the warden and the superintendent.
14            (4)   Two years for the representatives from organized
15      labor.
16            (5)   The secretary, the Secretary of Labor and Industry,
17      the director of correctional industries and the
18      representative from the Office of Victim Advocate shall serve
19      continuously.
20      (d)     Reappointment.--A member of the authority may be
21   eligible for reappointment. A member shall continue to serve
22   after the expiration of the member's term until a successor is
23   appointed.
24      (e)     Vacancies.--A vacancy shall be filled by the original
25   appointing authority for the remainder of the unexpired term. A
26   vacancy shall be filled within 90 days of the occurrence of the
27   vacancy.
28      (f)     Meetings.--The authority shall meet biannually and upon
29   the request of the chair or three or more members. All meetings
30   of the authority shall be held in accordance with 65 Pa.C.S. Ch.

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 1   7 (relating to open meetings).
 2      (g)     Quorum.--For the transaction of general business of the
 3   authority, four members shall constitute a quorum. A majority
 4   vote of the members present will be necessary for a private
 5   sector prison industry application to be approved. Each approval
 6   of a private sector prison industry application shall be made by
 7   a vote at a duly constituted meeting of the authority.
 8      (h)     Compensation.--Notwithstanding any other provision of
 9   law, members shall receive no compensation for their services on
10   the authority, but shall be reimbursed by the department from
11   the department's Manufacturing Fund under section 3122 (relating
12   to Manufacturing Fund) for reasonable and necessary expenses.
13      (i)     Administration of authority.--The department shall
14   furnish administrative support to the authority. Legal counsel
15   for the authority shall be furnished by the Office of General
16   Counsel.
17   § 1905.    Powers and duties of authority.
18      The authority shall have the powers and duties to:
19             (1)   Authorize the department to apply to the United
20      States Department of Justice, Bureau of Justice Assistance or
21      any successors for certification, as an umbrella authority,
22      to assist other units of government seeking to participate in
23      the program.
24             (2)   Act as an intermediary between the department, and
25      its designees, and the United States Department of Justice,
26      Bureau of Justice Assistance or any successors in complying
27      with the mandatory criteria and program requirements for
28      private sector prison industries in this Commonwealth.
29             (3)   Adopt procedures for determining whether a
30      prospective private sector prison industry proposed by the

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 1      department or any county correctional agency complies with
 2      the requirements of the program and other State law not
 3      inconsistent with this chapter.
 4             (4)   Approve or disapprove proposals submitted to the
 5      authority from the department, or its designees, for private
 6      sector prison industry for inclusion or continuation in the
 7      program.
 8             (5)   Monitor the department and its designees to ensure
 9      continuing compliance with this chapter and Federal and State
10      law and provide proper notification of violations and
11      proposed actions taken to ensure compliance and remediation.
12             (6)   Designate which services to be performed or articles
13      manufactured or assembled by incarcerated individuals are
14      conforming to the program regulations and can be sold on the
15      open market.
16             (7)   Monitor an approved private sector prison industry
17      to ensure that it is complying with applicable labor
18      standards specified in section 1906(c) (relating to
19      cooperation with private industry) and any other applicable
20      Federal or State law.
21             (8)   Cancel any private sector prison industry where the
22      authority determines that the private sector prison industry
23      has not complied with the requirements of this chapter or has
24      violated another Federal or State law applicable to work
25      performed under this chapter.
26   § 1906.    Cooperation with private industry.
27      (a)    General rule.--Upon the approval of the authority, the
28   department or a county correctional facility, with the approval
29   of its governing board, may enter into contracts with a private
30   business, private enterprise or nonprofit organization to permit

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 1   the employment of incarcerated individuals to perform designated
 2   work under the employer model. The department shall remain
 3   responsible for the custody of individuals incarcerated in a
 4   State correctional institution who are working for a cost
 5   accounting center operated by the department. The county shall
 6   remain responsible for the custody of individuals incarcerated
 7   in a county correctional institution who are working for a cost
 8   accounting center operated by the county. The contractual
 9   arrangement authorized by this chapter shall not create any
10   third-party rights in any incarcerated individual.
11      (b)   Status of incarcerated individual.--No incarcerated
12   individual compensated for participation in the program shall be
13   considered to be an employee of the Commonwealth or the county
14   nor shall the incarcerated individual be afforded the rights and
15   privileges of Commonwealth or county employees. Where a private
16   business, private enterprise or nonprofit organization is
17   directly employing an incarcerated individual under the employer
18   model the private business, private enterprise or nonprofit
19   organization shall be solely responsible and liable for
20   compliance with all applicable labor standards specified in this
21   chapter or in other applicable Federal or State laws. No
22   incarcerated individual may be employed under this chapter for
23   more than 40 hours in any workweek.
24      (c)   Certain rights preserved.--Nothing contained in this
25   section shall be deemed to restore, in whole or in part, the
26   civil rights of participating incarcerated individuals, except
27   that participating incarcerated individuals shall be afforded
28   the protection of 29 U.S.C. Ch. 8 (relating to fair labor
29   standards), 42 U.S.C. § 2000a-1 (relating to prohibition against
30   discrimination or segregation required by any law, statute,

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 1   ordinance, regulation, rule or order of a State or State
 2   agency), 29 U.S.C. Ch. 15 (relating to occupational safety and
 3   health), 42 U.S.C. Ch. 76 (relating to age discrimination in
 4   federally assisted programs), 42 U.S.C. Ch. 126 (relating to
 5   equal opportunity for individuals with disabilities), the act of
 6   June 2, 1915 (P.L.736, No.338), known as the Workers'
 7   Compensation Act, the act of October 27, 1955 (P.L.744, No.222),
 8   known as the Pennsylvania Human Relations Act, the act of July
 9   14, 1961 (P.L.637, No.329), known as the Wage Payment and
10   Collection Law, and the act of January 17, 1968 (P.L.11, No.5),
11   known as The Minimum Wage Act of 1968, solely to the extent that
12   they apply to the private sector prison industry employment
13   relationship.
14      (d)    Consent to deduction.--An incarcerated individual may
15   participate in the program established under this chapter only
16   on a voluntary basis and must consent, in advance, to the
17   specific deductions from gross wages, as specified under section
18   1908 (relating to wages and deductions). An incarcerated
19   individual performing services for a cost accounting center
20   shall indicate, in writing, that the incarcerated individual:
21             (1)   agrees voluntarily to participate in the cost
22      accounting center activities; and
23             (2)   agrees voluntarily, and in advance, to specific
24      deductions made from gross wages, as well as all other
25      financial arrangements made as to wages earned through
26      participation in the cost accounting center's activities.
27   § 1907.    Minimum requirements of private sector prison industry.
28      (a)    Requirements enumerated.--A private business, private
29   enterprise or nonprofit organization may not enter into a
30   contract under section 1906 (relating to cooperation with

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 1   private industry) unless it demonstrates all of the following:
 2          (1)   The private business, private enterprise or
 3      nonprofit organization, the department or the governing
 4      authority of the county correctional system, whichever is
 5      applicable, consulted with local union central bodies and
 6      with local businesses that may be affected by the private
 7      business, private enterprise or nonprofit organization
 8      participating in the program.
 9          (2)   The private business, private enterprise or
10      nonprofit organization has submitted information in a form
11      and manner approved by the authority that its participation
12      in the program will not:
13                (i)    demonstrably result in the displacement of
14          employees in the local workforce development area;
15                (ii)    be applied in skills, crafts or trades in which
16          there is a surplus of available gainful labor in the
17          locality; or
18                (iii)    impair existing contracts for goods and
19          services. A contract may not be executed by or with a
20          private sector prison industry employer that will permit
21          the employment of incarcerated individuals in the same
22          job classifications or similar work duties or assignments
23          as individuals who are on strike as a result of a labor
24          dispute as defined in the act of June 1, 1937 (P.L.1168,
25          No.294), known as the Pennsylvania Labor Relations Act,
26          or who are otherwise involved in a labor dispute as that
27          term is defined by Federal law, including a lockout.
28          (3)   The private business, private enterprise or
29      nonprofit organization has provided proof of security for the
30      payment of workers' compensation as provided in section 305

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 1      of the act of June 2, 1915 (P.L.736, No.338), known as the
 2      Workers' Compensation Act, for work to be performed under the
 3      contract. Security for the payment of workers' compensation
 4      shall be maintained throughout any program authorized under
 5      this chapter.
 6             (4)   The work to be performed under the contract is not
 7      covered by the act of August 15, 1961 (P.L.987, No.442),
 8      known as the Pennsylvania Prevailing Wage Act, or the act of
 9      October 24, 2012 (P.L.1209, No.151), known as the Child Labor
10      Act.
11             (5)   The private business, private enterprise or
12      nonprofit organization has provided proof that it has not
13      been found in the last 10 years to be in violation of any law
14      listed in section 1906(c).
15             (6)   Any activity undertaken by the private business,
16      private enterprise or nonprofit organization under the
17      contract shall be in compliance with 42 U.S.C. Ch. 55
18      (relating to National Environmental Policy).
19      (b)    Priorities.--When reviewing a potential private sector
20   prison industry, the authority shall consider the impact on the
21   employment of persons in the private business sector of this
22   Commonwealth and consider establishing joint ventures that will
23   retain or reclaim jobs in this Commonwealth, support emerging
24   Commonwealth industries or create jobs for a deficient labor
25   market.
26   § 1908.    Wages and deductions.
27      (a)    Wages.--All incarcerated individuals participating in a
28   cost accounting center's activities shall be compensated at a
29   rate that is not less than the wages paid for work of a similar
30   nature in private industry in the local workforce development

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 1   area in which the activity is performed, as determined after
 2   consultation with the Department of Labor and Industry. The
 3   Department of Labor and Industry shall base its determination on
 4   estimated occupational data available for the local workforce
 5   development area. An incarcerated individual may not receive
 6   compensation that is less than the minimum wage established by
 7   Federal or State law, whichever is higher, except as specified
 8   in Federal and State law. Wages shall be paid no less frequently
 9   than biweekly. Any wages remaining after the deductions under
10   subsection (b) shall be maintained by the appropriate
11   correctional authority in a fund in the incarcerated
12   individual's name. The amount remaining shall be returned to the
13   incarcerated individual at the time of release. The correctional
14   authority may permit the incarcerated individual to draw a
15   portion of the money for other purposes deemed to be appropriate
16   by the correctional authority.
17      (b)   Deductions.--
18            (1)   An incarcerated individual shall have deducted from
19      gross compensation received:
20                  (i)    Federal, State and local taxes.
21                  (ii)    Contributions to the Crime Victim Services and
22            Compensation Fund or equivalent fund established by law
23            to compensate victims of crime and court-ordered victim
24            restitution, which contributions combined may not be less
25            than 5% nor more than 20% of the incarcerated
26            individual's gross wages.
27                  (iii)    A reasonable portion of room and board and
28            administrative costs for the incarcerated individual in a
29            correctional facility as determined by the department or
30            the governing body of the county correctional agency.

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 1                  (iv)    An allocation for support of the incarcerated
 2            individual's immediate family pursuant to State statute,
 3            court order or agreement by the incarcerated individual.
 4                  (v)    All deductions provided for in subparagraphs
 5            (i), (ii), (iii) and (iv), in their entirety, may not
 6            exceed 70% of an incarcerated individual's gross wages.
 7            The incarcerated individual employee shall be paid,
 8            credited with, or otherwise benefit from, the gross
 9            remainder. The remaining gross amount may be directed to
10            incarcerated individuals' expense accounts, or to the
11            settling of the incarcerated individuals' legal
12            obligations, including the payment of court-ordered fines
13            and restitution.
14            (2)   No other deductions from gross compensation are
15      permitted unless otherwise authorized under Federal or State
16      law. Deductions from gross pay shall not in the aggregate
17      exceed 80% of gross wages. Each incarcerated individual
18      employed shall receive a written statement of the description
19      and amount of each deduction.
20      (c)   Workers' compensation.--The provision of benefits and
21   compensation to incarcerated individuals for injuries sustained
22   in the course of employment provided for under this chapter
23   shall be subject to any limitations specified under the act of
24   June 2, 1915 (P.L.736, No.338), known as the Workers'
25   Compensation Act, except that an approved private sector prison
26   industry shall be liable for compensation under the Workers'
27   Compensation Act for any work-related injuries resulting from
28   work performed under this chapter notwithstanding section
29   306(a.1) of the Workers' Compensation Act, relating to prison
30   labor. Nothing in this act shall require the payment of

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 1   disability compensation under section 306(a) or (b) of the
 2   Workers' Compensation Act for any period during which the
 3   incarcerated individual remains incarcerated. Incarcerated
 4   individuals and their dependents are precluded from filing
 5   claims against the Uninsured Employers Guaranty Fund for
 6   injuries sustained for work performed under this chapter.
 7      (d)     Unemployment insurance.--An incarcerated individual is
 8   not qualified to receive unemployment insurance payments.
 9   § 1909.    Administrative support.
10      The department shall provide the authority with reasonable
11   administrative and clerical support services subject to the
12   availability of funds.
13   § 1910.    Immunities not waived.
14      No provision of this chapter shall waive or impair any
15   sovereign, government, qualified or other immunity from or
16   defense against suit available to the Commonwealth and its
17   departments, boards, officers, employees and agents or the
18   political subdivisions of this Commonwealth and their agencies,
19   officers and employees.
20   § 1911.    Civil actions.
21      An incarcerated individual may not bring a civil action
22   before any court, independent commission or authority of this
23   Commonwealth against the authority, the Commonwealth or its
24   agencies, officers or employees or the political subdivisions of
25   this Commonwealth and their agencies, officers and employees
26   based upon a contractual arrangement authorized under this
27   chapter.
28   § 1912.    Construction of chapter.
29      No provision of this chapter may be construed:
30             (1)   To establish a civil cause of action against the

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 1      authority, the Commonwealth or its agencies, officers or
 2      employees or the political subdivisions of this Commonwealth
 3      and their agencies, officers and employees.
 4             (2)   To establish an enforceable right in any person to
 5      obtain or retain employment in the private sector prison
 6      industry.
 7             (3)   To require the department or any county to propose
 8      or permit a private sector prison industry within the
 9      correctional facility.
10             (4)   To affect or change the method or manner of
11      incarcerated individual work assignments within a
12      correctional facility or the statutory authority to compel
13      the labor on behalf of the Commonwealth or any political
14      subdivision thereof.
15   § 1913.    Monetary limitations.
16      There shall be no monetary limitations on the amount of goods
17   and services supplied to the open market unless otherwise stated
18   by the authority.
19      Section 2.     All acts and parts of acts are repealed insofar
20   as they are inconsistent with the addition of 61 Pa.C.S. Ch. 19.
21      Section 3.     This act shall take effect in 120 days.




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