Act No. 102
Public Acts of 2007
Approved by the Governor
October 1, 2007
Filed with the Secretary of State
October 1, 2007
EFFECTIVE DATE: October 1, 2007

STATE OF MICHIGAN
94TH LEGISLATURE
REGULAR SESSION OF 2007
Introduced by Senators Allen, Kuipers, Kahn, Jelinek and Pappageorge

ENROLLED SENATE BILL No. 632
AN ACT to amend 1968 PA 15, entitled “An act to provide for the employment of inmate labor in the correctional
institutions of this state; to provide for the employment of inmate labor in certain private enterprises under certain
conditions; to provide for certain powers and duties of the department of corrections, the governor, and other officers
and agencies in relation to correctional institutions; to provide for the requisitioning and disbursement of correctional
industries products; to provide for the disposition of the proceeds of correctional industries and farms; to provide for
purchasing and accounting procedures; to regulate the sale or disposition of inmate labor and products; to provide for
the requisitioning, purchases, and supply of correctional industries products; to provide penalties for violations of this
act; and to repeal acts and parts of acts,” by amending section 6 (MCL 800.326), as amended by 1996 PA 537.
The People of the State of Michigan enact:
Sec. 6. (1) Correctional industries products may be sold, exchanged, or purchased by any of the following:
(a) An institution of this or any other state or political subdivision of this or any other state, the federal government
or agencies of the federal government, a foreign government or agencies of a foreign government, or a private vendor
that operates a correctional facility in this state.
(b) Any organization that is a tax exempt organization under section 501(c)(3) of the internal revenue code.
(c) Any private business or individual, if the products are cut and sewn textiles, but only if the same or a comparable
in style product is not manufactured by a private business in this state.
(2) An agricultural product that is produced on a correctional farm may be utilized within the correctional
institutions or within a correctional facility in this state notwithstanding its operation by a private vendor or sold to an
institution, governmental agency, or organization described in subsection (1) or sold for utilization in the food production
facilities of the department of corrections notwithstanding the operation of those facilities by a private vendor. An
agricultural product that is not utilized or sold as provided in this subsection shall be made available without charge to
nonprofit charitable organizations or to the family independence agency for use in food banks, bulk food distributions,
or similar charitable food distribution programs. This subsection does not apply to an agricultural product that is not in
a form suitable for use in the manner prescribed in this section, such as bulk grain, live cattle, and hogs, which may be
sold on the open market.
(3) Except as provided in subsections (4) and (5), the labor of inmates shall not be sold, hired, leased, loaned,
contracted for, or otherwise used for private or corporate profit or for any purpose other than the construction,
maintenance, or operation of public works, ways, or property as directed by the governor. This act does not prohibit the
sale at retail of articles made by inmates for the personal benefit of themselves or their dependents or the payment to
inmates for personal services rendered in the correctional institutions, subject to regulations approved by the
department of corrections, or the use of inmate labor upon agricultural land that has been rented or leased by the
department of corrections upon a sharecropping or other basis.
(55)

(4) If more than 80% of a particular product sold in the United States is manufactured outside the United States and
none of that product is manufactured in this state, or if a particular service is not performed in this state, as determined
by the department of corrections in conjunction with the advisory council for correctional industries, inmate labor may
be used in the manufacture of that product or the rendering of that service in a private manufacturing or service
enterprise established under section 7a. A determination by the department of corrections under this subsection shall
be made at the time the individual or business entity applies to the department for approval to produce that product or
render that service pursuant to section 7a.
Enacting section 1. This amendatory act does not take effect unless all of the following bills of the 94th Legislature
are enacted into law:
(a) House Bill No. 5194.
(b) House Bill No. 5198.
This act is ordered to take immediate effect.

Secretary of the Senate

Clerk of the House of Representatives

Approved

Governor

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