PIECP

More Controversies at Nevada DOC – Director Cox Resigns

More Controversies at Nevada DOC – Director Cox Resigns

In mid-September Nevada Governor, Brian Sandoval asked for the resignation of Gregg Cox, Director of the state Department of Corrections. The action was taken by the Governor because a report about prisoner shootings and abuses by staff in the state’s prisons was late.

The report completed by the Association of State Correctional Administrators was to be presented by Cox at a Tuesday meeting of the Board of Prison Commissioners, which the Governor is a part of.

The governor felt that it was time to move the department in a new direction,” according to a statement from Gov. Brian Sandoval’s office on the departure of Greg Cox. The corrections department is facing several lawsuits due to prison shootings in the past few years.

One incident at High Desert State Prison left inmate Carlos Manuel Perez Jr. dead. Sources say Perez was handcuffed when he was shot and killed, and accuse prison guards of creating a “gladiator-like scenario” by allowing inmate fights to go on before firing into the fray. It wasn’t revealed until four months afterward that Perez died from gunfire.

Earlier in 2013 Cox’s department came under fire for allowing the DOC’s prison industry program to be used by a private company, Alpine Steel and company owner, Randy Bulloch to use inmate labor – without paying them wages.

Alpine Steel owner, Randy Bulloch

Alpine had been able to avoid paying rent, utilities, inmate or staff labor wages for more than a year, running up a tab of nearly $500,000 – while Deputy Director Brian Connett of the NDOC Prison Industry, (Silver State Industries) – turned a blind eye upon the climbing debt, allowing Bulloch’s steel fabrication operation to continue virtually free of overhead, at taxpayer expense. Connett went so far as to approve Alpines new contract with the NDOC, failing to report the back debt owed while reporting Alpine had fulfilled all requirements under the expiring contract.

The facts surrounding the Alpine case began to emerge in late 2012 when steel companies started protesting to NDOC and legislative authorities arguing they were being unfairly forced to compete against a local company using inmate labor. Business owners asserted they had lost bids on projects and thus were unable to expand their businesses or hire more workers due to interference from Nevada’s prison industry operations.

Governor Sandoval eventually stepped in and ordered the closure of the Alpine operation following those complaints. The challenges centered upon unfair competition by a private company using inmate labor to reduce labor costs and thus underbid complainants for lucrative state and private contracts involving fabricated steel materials.

Alpine quickly paid over $78,000 in back wages owed to inmate workers. The NDOC entered into an agreement with Alpine to repay the state the remaining money owed for staff wages, utilities and lease of prison facilities. Surprisingly the agreement had no provision for Mr. Bulloch to be personally responsible for any of the accrued debt owed.

Within months Bulloch defaulted on the terms of the agreement and the state secured a judgment against Alpine for more than $400,000. Alpine also incurred state and federal tax liens for non-payment of income taxes. These totaled more than an additional $680,000.

The taxpayers have been left holding the bag…. As a result of this I think there is going to be a lot more oversight,” Nevada Assemblyman James Ohrenschall said in an interview on Vegas Inc. September 21, 2013. Mr. Ohrenschall is the former chairman of the Legislature’s Interim Finance Committee on Industrial Programs. At the time of that interview, the IFC Committee was meeting to investigate facts related to Alpine Steel that prompted his concerns.

Unfortunately Mr. Ohrenschall was too optimistic in his assessment of oversight, but his claim of “taxpayers have been left holding the bag” is still accurate. To date the state has been unable or unwilling to pursue collection of the nearly half million dollar debt owed to taxpayers by Bulloch and his company.

Though Bulloch voluntarily surrendered his contracting license to the Nevada Contractors Board in October 2013, saying he was closing down his business…Alpine Steel’a website remains open for business while the company owner continues to avoid paying the state any of the money owed taxpayers under the court ordered judgment. Additionally, along with the Alpine website still showing it is an active business, Mr. Bulloch is now selling structural steel and fabricated components as Hunt Steel, also in Las Vegas. Links to fabrication, etc. on the Alpine site, takes visitors to Bulloch’s Hunt Steel site.

Director Cox managed to retain his position after the Legislature enacted new revisions to existing Nevada law to prevent potential or new industry operators from starting up without posting a surety bond to guarantee payment of leases and utilities owed to the state. Known as Senate bill 478, this law also provides that the public be notified of any potential new prison industry proposals, to date there has been no such notice given to the public or possible competitors though there have been new industries proposed to the Interim Finance Committee on Industrial Programs.

Just prior to Cox taking over as Director in 2011 he was a Deputy Director when the prison industries “wrote off” more than $800,000 in outstanding noncollectable debt owed to the Prison Industry Program. With Alpine’s additional $428,000, Nevada taxpayers have lost more than $1.2 million dollars. The now pending lawsuits against the NDOC, it’s staff and officers, could result in another $1 million or more needed to settle inmate abuse and shooting claims and/or court judgments.

It appears Director Cox avoided one serious controversy involving a lack of transparency only to succumb to another controversy involving transparency before the same Board of Prison Commissioners that again, included Governor Sandoval.

Why ALEC is Ultra-Important & Irreplaceable to the Koch Cabal

Why ALEC is Ultra-Important & Irreplaceable to the Koch Cabal

by Bob Sloan

Pursuing Charles and David Koch and their funding of the far right and an ultra-conservative agenda is important. Identifying the “charitable” organizations they launder money through – which is then passed onto other organizations (along with credits), is also important. Exposing the various billionaire families (DeVos, Coors, Bradley, etc.) that contribute to the goals of the Kochs’ and their cabal, is likewise important.

However, what those actively pursuing and exposing the Koch Cabal must understand is that once an integral part of the cabal is exposed, the duties that particular organization was responsible for, is transferred to one or more of the Koch’s vast network – and the agenda continues to move along smoothly without any real interruption. The cabal can afford to “lose” one or more of the network’s controlled “charities” and continue to function without missing a beat.

The one “tool” available to the Kochs’ and their vast network that they simply cannot function without…cannot shift the duties of or advance an agenda without…is the American Legislative Exchange Council (ALEC). ALEC is the “enabler” for the entire cabal’s vast network. Through ALEC legislation is developed that directly benefits that network in one form or another (lower corporate taxes, deregulation of government oversight(s), voter restrictions, tort “reforms” that limit compensation available to consumers, limiting the authority of government agencies such as the DOJ and EPA).

ALEC is what allows corporate interests to be written into laws the general public are made to live by. An example of such laws are seen everywhere today: criminal justice privatization…private prisons, privatized prisoner healthcare, phone services, banking and industries where prisoner labor manufactures goods for private companies; pursuit of privatizing the U.S. Post Office (FedEx and UPS are long time members of ALEC); Stand Your Ground; relaxation of renewable energy mandates and deregulation involving emission standards; privatizing our public school systems, authorization of Charter Schools…and the list goes on with hundreds of laws written to benefit business and corporations adopted by ALEC and sent out nationwide via nearly 2,000 state lawmakers holding ALEC membership and loyalty.

Without ALEC the overall Koch cabal/network would be unable to advance their conservative agenda through “model legislation” presented in all 50 states by ALEC controlled state lawmakers. Without the ability to craft legislation and get it introduced in our states, the entire network would cease to function as a viable political entity – as it has since 1973.

The entire landscape of our laws over the past 40 years has been affected by ALEC. Drug laws, mandatory minimum sentences, truth in sentencing, abolishing parole…all of the hundreds of laws used to incarcerate millions of Americans for victim-less crimes and hold them for years as a vast labor force available to private manufacturers, were written and disseminated by ALEC. Private prison contractors, Geo Group and Corrections Corporation of America (CCA) were members of ALEC when the laws authorizing prison privatization were written and passed state by state.

Some of the companies that have capitalized from these laws and this slave-styled work force include; Boeing, Microsoft, McDonalds, Victoria’s Secret, JC Penney, WalMart, Starbucks, Lockheed Martin, Berkshire Hathaway, Honeywell, Revlon, IBM, Lucent Technologies, AT&T Wireless. Intel, Siemens, etc. Good jobs were taken from American labor markets and turned over to low wage prisoners due to ALEC’s “Prison Industries” legislation.

Conservative politicians have fought against jobs bills and legislation because they’ve spent decades working to lower wages through the insourcing of labor; taking jobs from the public sector and placing them in the hands of a captive workforce.

Today as the GOP struggles to remain a viable political party, American voters have begun to wake up and vote against their extreme agenda. This has resulted in the pursuit of gerrymandering precincts and districts by Republicans as well as introduction and passage of legislation to reduce voter participation through “voter ID” and “voter suppression” laws. These are designed specifically to impact upon minority voters who predominately vote democratic.

The current attack upon voters is not coincidental. ALEC co-founder Paul Weyrich famously stated in 1980 that he did not want everyone to vote because “our leverage in elections goes up as the voting populace goes down“. In 1999 after the election of George W. Bush, a disciple of Weyrich, Eric Heubeck published a “treatise” based upon the teachings of Weyrich, titled “The Integration of Theory and Practice: A Program for the New Traditionalist Movement“.

In this manifesto styled treatise Heubeck put forth the guidelines for conservatives to follow that would allow entirely changing the political landscape, advancing a conservative and evangelical agenda to assume domination over progressive and liberal ideologies. The instructions quite candidly have worked. A reading of this document and comparison to the instructions provided against actual activities, actions and events that have taken place over the past 14 years reveals conservatives (and ALEC) have followed the guidelines religiously.

The Koch agenda is funded by Charles, David and a handful of select rich business owners and corporate executives, many of which sit upon ALEC’s Private Enterprise Advisory Council or are represented by CEO’s, CFO’s or other executives. This “advisory” council has direct access to all of ALEC’s 2,000 legislative members and alumni (many of which are now members of Congress, 82 Representatives and 10 Senators). Of the alumni, several names are associated with today’s gridlock in Congress; Manchin, Inhofe, Graham, Rubio, Shelby, Enzi, Bachus, Blackburn, Boehner, Cantor, Gingrey, Price and King. Again, these alumni and the pursuit of the cabal’s agenda through them is not coincidental. These elected officials have a loyalty to the cabal members, ALEC and campaign donors such as the Kochs and many of the corporations holding membership in ALEC.

Laws must be designed, written and crafted based upon constituent needs and desires – not based upon what fattens the bottom line of some corporation or powerful business owners. Doing it that way has led us to where we are today with a handful of people holding the majority of assets and the middle class existing off the crumbs of the rich.

When you hear philosophy, economics or corporate rights issues discussed by the likes of Steven Moore, Art Laffer or Victor Schwartz upon the airwaves or in the newspapers, keep in mind they are all members of ALEC’s “Board of Scholars”. They along with Congressmen such as Graham, Boehner and Cantor speak on behalf of ALEC, Charles and David Koch and the other cabal members.

As clearly demonstrated by the foregoing, without ALEC and that organization’s ability to advance laws sought by their corporate members and donors, the cabal would be unable to function as a powerful and direct influence upon state and federal legislation. Which leads to the conclusion that ALEC must be abolished – at all costs. They and their considerable influence must be removed from all legislative involvement. The cabal must be denied the ability to draft model legislation favored by them and pass it along to state legislatures through ALEC’s legislative membership.

Once ALEC loses the ability to put legislators and corporations at the same table and write legislation such as they have done for years – the cabal will collapse upon itself. Without the ability to advance legislation the cabal is without the means necessary to control our legislatures and laws. Alec truly is the entity that enables the agenda…and must be eliminated. Until then, the beneficial corporate crafted legislation will continue to flow to every state, year after year until they succeed in passing them into law. Attempts at voter suppression will continue, government oversight will be weakened as the planet’s resources are consumed by hungry corporations without regard for future generations or the impact upon the globe.

All paths to and from the Cabal go through ALEC…
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ALEC the enabler must be forced into extinction…

Cheap Prison Labor, Unemployment #’s and Related ALEC News

Cheap Prison Labor, Unemployment #’s and Related ALEC News

standuptoalec

Keystone Pipeline…Voter ID and Suppression laws…Right to Work (for less)…Stand Your Ground…Tort “Reform”…Limiting liability in Asbestos lawsuits…Reducing Energy and EPA Regulations…Trans Pacific Partnership…Repealing Healthcare…Reducing Wages…Abolishing Minimum Wage laws…Eliminating Organized Labor…Defunding Education and Replacing Public Schools with Charters…and Replacing American Workers with American Prison Labor…

All of the foregoing issues can be found in today’s headlines across America. Behind each and every one of these critical issues and hundreds more is the agenda of the conservative controlled and Koch funded American Legislative Exchange Council (ALEC).  In fact most of the onerous legislation rambling through the statehouses of each state – and in many cases our Congress – are “Bills” that began life as model legislation developed by ALEC.

With thousands of state lawmakers alongside more than 350 multi-national corporations holding active membership in ALEC it is no coincidence that each law that benefits business originates and is promoted by ALEC.  Big oil (Exxon, Mobil, Shell, BP America, Chevron. ConocoPhillips), energy conglomerates (American Electric Power, Duke Energy, Energy Future Holdings, Peabody Energy), pharmaceutical companies (Bayer, Pfizer, Johnson and Johnson, Merck, PhRMA), banking, investments, insurance are all represented upon ALEC’s board and general membership.  Each has the opportunity to write, propose and lobby for legislation friendly to their particular field…and if any proposal is successful, they have an equal vote on adoption by the entire ALEC membership and dissemination to every state via ALEC’s elected lawmaker members.

Below are some of today’s headlines related to the foregoing issues and ALEC’s pursuits on behalf of their corporate controllers…

Hundreds Of American Companies Pay Employees As Little As 23 Cents An Hour

At the heart of this issue of prison labor used by private businesses to undercut competitors and eliminate jobs and living wages, we again find the American Legislative Exchange Council (ALEC)…

When you think of prison labor, what comes to mind? You might envision inmates making license plates and highway signs or cleaning up road debris. For decades, this perception would have been roughly accurate. Using prison labor in the private sector was illegal, so inmates worked on public projects.

But this dynamic changed dramatically in 1979 with the passing of the Prison Industry Enhancement Certification Program (PIE). PIE made it legal for private sector companies to contract prison labor to produce goods…

…The dynamic is a corporation’s dream – inmates make as little as 23 cents an hour, never show up late for work, and don’t demand benefits or time off. These inmates don’t account for some small percent of manufacturing production, either.

According to a report done by the Centre for Research on Globalization, prison labor produces 100% of American military helmets, ammunition belts, bullet proof vests, ID tags, and uniforms. These products are made for UNICOR, a for-profit company owned by the United States government…

…But here is the real problem with privatized prison labor: it puts a financial incentive on incarceration. When companies can push their profit margins through the roof with prison labor, they suddenly have a huge self-interest in maintaining high incarceration rates. This isn’t speculation, either. Since private sector prison labor was made legal, America’s biggest economic powers have actively lobbied for legislation designed to both imprison more people and lengthen their sentences.

Perhaps no organization shows this to be true more clearly than the American Legislative Exchange Council (ALEC). ALEC is an enormous lobbyist organization involved in many issues. They write model legislation used to construct policies in economics, international relations, education, agriculture, and a number of other areas…

Keystone PipeLIES Exposed: The Facts on Petroleum Politicians, Crude Money and Media Spin

“TransCanada set out to build this pipeline five years ago, and they still haven’t. That’s saying something about the efforts of activists throughout the country, in spite of all of the money invested in seeing it happen,” Natural Resources Defense Council analyst Anthony Swift says.

“In the southern portion of the pipeline, we saw ranchers, we saw longtime Texas farmers joining with the climate justice activists from Tar Sands Blockade, working to block the tar sands,” says Kevin Zeese, co-director of It’s Our Economy. “And they did a good job. They slowed it down and made it more difficult and more expensive. And they’re effective; a big French investor pulled out because it was getting too expensive.”

The effort that goes into street-level organizing is as much a matter of necessity as it is anything else. Facing one of the most profitable industries in the world, KXL opponents know they can’t compete in the Washington arena using the traditional weapons of choice: campaign contributions and lobbying budgets.

“Our opposition is quite formidable,” says Jason Kowalski of 350.org “The fossil fuel industry has made more money in the history of money in recent years. If we win, it’s because of our bodies and our spirits and our courage and our numbers. We know we have the moral high ground, and that’s how we are going win this thing.”

Of Course ALEC Is Involved in the Keystone Cash

Not willing to leave anything to chance, the oil industry is taking action to make sure state legislators see things their way. As the Center for Media and Democracy (which publishes PRWatch) reported, the American Legislative Exchange Council (ALEC) sent nine state legislators on an industry-paid field trip to the Alberta tar sands in 2012.

ALEC, which receives funding from TransCanada, the Koch brothers (whose Canadian subsidiary has tar sands investments), and other fossil fuel corporations, set up the event to put legislators in the same room as the industry lobbyists who paid for the lavish private-jet travel and fine dining. ALEC also prompted each of the nine legislators to send their corporate sponsors a thank you note, with a reminder of what the lobbyists had paid for the tour.

CMD also uncovered emails between TransCanada’s lobbyist and Ohio state Rep. John Adams in which the lobbyist provided Adams with a model bill in support of KXL, with Adams swiftly introduced in the legislature. The bill was co-sponsored by another participant in ALEC’s Alberta field trip.

Ash Spill Shows How Watchdog Was Defanged

RALEIGH, N.C. — Last June, state employees in charge of stopping water pollution were given updated marching orders on behalf of North Carolina’s new Republican governor and conservative lawmakers.

“The General Assembly doesn’t like you,” an official in the Department of Environment and Natural Resources told supervisors called to a drab meeting room here. “They cut your budget, but you didn’t get the message. And they cut your budget again, and you still didn’t get the message.”

From now on, regulators were told, they must focus on customer service, meaning issuing environmental permits for businesses as quickly as possible. Big changes are coming, the official said, according to three people in the meeting, two of whom took notes. “If you don’t like change, you’ll be gone.”

But when the nation’s largest utility, Duke Energy, spilled 39,000 tons of coal ash into the Dan River in early February, those big changes were suddenly playing out in a different light. Federal prosecutors have begun a criminal investigation into the spill and the relations between Duke and regulators at the environmental agency.

How ALEC helped Duke Energy block stricter coal ash rules

Duke Energy is not only the nation’s largest electric utility but one of its political powerhouses. Besides the millions of dollars the North Carolina-based company spends on federal and statecampaign contributions and lobbying, another tool it has used to get its way in the public policy arena is the American Legislative Exchange Council…

…Contacted about its ALEC membership status this week, Duke Energy spokesperson Chad Eaton said “we do not release each and every group Duke Energy is a member of or involved with since those memberships and sponsorships are evaluated on an annual basis and often frequently change.” He also noted that the company is “active in many groups that have a variety of viewpoints but that does not mean that we support all of the various positions those organizations take.”

Nevertheless, it’s an established fact that Duke Energy was a member of ALEC during the height of the group’s efforts to block strict federal regulation of coal ash and held a seat on ALEC’s Energy, Environment and Agriculture Task Force. In addition, Duke Energy’s position on coal ash is in line with ALEC’s, as the company itself has lobbied to block strict coal ash rules and submitted numerous comments to federal regulators opposing strict oversight…

…ALEC was one of the drivers of the political backlash that slowed EPA from taking action in the wake of the Kingston disaster. Among the actions ALEC took as part of its efforts to block strict federal oversight of coal ash:

* Passed a “Resolution to Retain State Authority Over Coal Ash as Non-Hazardous Waste.” ALEC’s board of directors approved this resolution, which “concludes that states are best positioned to serve as the principal regulatory authority for [coal ash] as non-hazardous waste.” (2010)

* Published “EPA’s Regulatory Train Wreck: Strategies for State Legislators.” This reporttook broad aim at the EPA for various efforts to curb energy-related pollution, including the proposal to treat coal ash as hazardous waste. It urges state lawmakers to “get the state on record as calling on Congress to stop this regulatory train wreck.” On coal ash specifically, it promoted the “Resolution to Retain State Authority Over Coal Ash as Non-Hazardous Waste” passed by its board the previous year. (February 2011)…

American City County Exchange (ACCE) – A new ALEC Program

The American City County Exchange works with local elected offcials to promote effciency and minimize waste by implementing limited government, free market solutions. The American City County Exchange is an affliate of the American Legislative Exchange Council.

WI ALEC Leader in Hot Water over Allegations of Sexual Harassment

Assembly Majority Leader Bill Kramer, a stalwart of the American Legislative Exchange Council, has been accused of sexually harassing two women while in Washington, D.C. last week for a Wisconsin GOP fundraiser. The Milwaukee Journal Sentinel reported that the 49-year-old Republican lawmaker physically and verbally harassed a 33-year-old female lobbyist at the fundraising event and another woman on the plane back to Wisconsin.

Statements from the GOP leadership signal that the incidents were serious: “The alleged behavior is reprehensible and won’t be tolerated,” said Assembly Speaker Robin Vos. Conservative pundit, Charlie Sykes reported: “According to news reports and my own sources, Kramer’s conduct last week went beyond tasteless jokes, and included physical contact that could be construed as sexual assault.” One source told Sykes it was “the least surprising headline ever.”

Kramer’s office staff released a statement indicating that the boss was checking into rehab, but a little counseling may not be enough. This is not the first time that this type of allegation has been made about Kramer. Republican State Representative Chris Kapenga warned his caucus that Kramer was a loose cannon after he engaged in similar conduct at an ALEC meeting in Chicago last August…

America’s corporate revolt against clean energy

The US’s fossil fuel industry is scared at the growth of solar power, and its ever-declining market cost. So it’s fighting back, reports Trip Van Noppen, doing its best to quash solar growth by imposing new costs and restrictions.

From California to Colorado to North Carolina and other states, many generators of centralized fossil fuel energy are trying to prevent individual Americans from producing clean, renewable solar energy on their own roof tops.

They would deny us the opportunity to participate in the greater goal of shifting away from polluting, climate-altering fossil fuels.

There is a simple reason for the utilities’ action: They fear losing their monopoly hold on revenue from power production.

Rooftop solar is a game changer that lets consumers generate their own power, reducing the need for a centralized power system and cutting to the heart of the utilities’ comfortable position of a guaranteed return.

For more than 100 years, power companies have profited from a centralized energy model that distributes power from a fossil-fuel burning power plant out to users through a grid of power lines…

…Legislation is proposed in 25 states to limit, tax or fine rooftop solar and net metering, the billing arrangement that allows rooftop solar customers to get credit for providing energy to the grid.

Further, in their portfolio planning, utilities are deliberately undervaluing the benefits and overvaluing the costs of rooftop solar.

Much of this is an orchestrated campaign by corporate lobby group American Legislative Exchange Council (ALEC) to promote legislation that encourages continued fossil fuel use and discourages competition from renewable energy sources. The Guardian reported that ALEC sponsored at least 77 anti-clean energy bills in 34 states in 2012.

Symbolic Book-Burning Is Alive And Well In South Carolina

If South Carolina is not the most backward state in the nation, it’s tied for first with some of its red state brethren, like say, Arkansas. The latest insult to the intelligence of any civil human being is the punitive symbolic book burning of a publication titled “Out Loud: The Best of Rainbow Radio.” The local newspaper describes it as a publication comprised of a collection of essays and poems from Southern gay residents.

The book was chosen by a panel of educators on the Upstate campus of the University of South Carolina. It is required reading for all incoming university freshmen. Wait for it! Wait for it! KERBOOM!!! The homophobic right-wing went predictably nuts. And in their corner, eager to please even the most radical of his constituents, stood state Representative Garry (yes, 2 r’s) Smith. Riding to the rescue of Neanderthal parents, whose kids were trapped in a literary web of Queerville.

Smith, just turning 57, is an active and enthusiastic member of the American Legislative Exchange Council (ALEC) and serves on its Communications and Technology Task Force. In his homophobic wisdom he decided to emulate symbolically, the actual historical book-burnings that have been all the rage since antiquity right up to the present day.

 Via a line item in the upcoming budget, Smith is proposing to cut $17,142 in funding to the University, the exact cost of the books…

Nevada Prison Industry Administrative Rules Now in Place

Nevada Prison Industry Administrative Rules Now in Place

by Bob Sloan

silver state industries

Following a full year of investigating complaints and revising Nevada’s prison industry program statute(s), a new Administrative Rule (AR 854) regulating the operation of that state’s prison industry operation has been submitted to the Board of Prison Commissioners (BPC) by NDOC Director, Greg Cox.  In December this regulation was adopted and became effective.

Sen. Richard Bryan

Sen. Richard Bryan

In October the NDOC submitted a long list of new or amended AR’s to the BPC for approval and implementation.  At that time Cox withheld the proposed AR 854 addressing the operation of the agency’s prison industry operations.  Cox held back on this single AR by advising the Board he wanted to work with former Senator Richard Bryan on the language of that particular regulation.

On December 17th Director Cox submitted the final negotiated regulation to BPC members, Governor Sandoval, AG Masto and Secretary of State, Ross Miller for consideration.  Following approval by the Board, the new prison industry regulations are now in effect.

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NDOC Dir. Cox

Critics and opponents of the prison industry program have now adopted a position of “monitoring” the state’s prison industry program. They’re doing so in an effort of ensuring there are no further infringements upon Nevada’s workers and businesses that compete against prison industries.  Last year it was discovered that the NDOC regulations were not being fully enforced and state statutes controlling prison industry operations were insufficient to protect both Nevada’s private sector workers and competing non-prison partnered businesses.

Alpine SteelAll of this came about after lawmakers, the media and general public learned that the prison industry program was more or less operating without any real oversight.  This allowed the NDOC to “partner” with a local Las Vegas business – Alpine Steel, LLC –  in a manner that provided that business with an unfair advantage over competitors and reduced the number of available private sector jobs.  Not only did this single business enjoy prison labor far below standard wage rates, but it also received low cost taxpayer subsidized utility costs and lease terms for state owned property that was far below the state averages. Additionally the NDOC failed to enforce most of the terms of the contract it had with Alpine, allowing the company to default on paying the salaries of NDOC staffers, prison workers and monthly lease payments or utility costs and making no effort to cure the defaults.

When this partnership was finally terminated by Governor Sandoval and the smoke cleared, the state was left with an owed debt of nearly half a million dollars.  Alpine’s owner entered into a negotiated agreement to repay the state but almost immediately defaulted, leaving taxpayers on the hook for hundreds of thousands of dollars in unpaid leases, staff salaries, utility costs and owed taxes.  This failed partnership resulted in the revamping of the state’s statutes controlling Nevada’s existing prison industries and all proposed new industries.

During the lengthy legislative activities related to the failed Alpine partnership, other issues were discovered that prison labor activists are continuing to pursue at both state and federal levels.  These include the hourly wages paid to inmate workers in the program, deductions taken from prisoner paychecks and working conditions.

Nevada is a participant in a federally run program (Prison Industries Enhancement Certification Program or PIECP) that encourages prison industry/private business partnerships such as the one involving Alpine.   However in order to establish and operate under such partnerships both the state and the private business must agree to abide by stringent mandatory conditions required by the federal government.  Two of the imposed mandatory requirements are that inmates be paid prevailing wages and that the state can only take approved deductions from those wages.  In the case of Alpine, the contract with the state required that inmate workers receive “prevailing wages” (section 8.6) or the same wage paid to private sector workers performing the same duties on the outside.  Instead, the NDOC and Alpine set the inmate wage rate at or below the state minimum wage scale, exploiting the labor of inmate workers and further enriching Alpine.

Subsequently it now appears Nevada is underpaying inmates working in the federal program and taking an unapproved deduction of 5% to fund new prison industry operations.  In effect Nevada’s inmate workforce are being made to fund operating expenses of the prison industry out of their already meager wages.

DD ConnettPrison labor advocates are attempting to work with the NDOC, Nevada authorities and the responsible federal agency to cure any purported violations regarding the PIECP program to ensure Nevada is in full compliance with current state and federal provisions regarding the use of inmate labor.

Currently the Deputy Director of the NDOC’s Prison Industry, Brian Connett has indicated there are no proposed new industries being considered by the agency. However prior to the furor caused by the Alpine situation, Connett was advocating for a new industry in Nevada operated by a California company. The operation would have used inmate labor at minimum wages to sort through collected trash and remove recyclables. The collection of trash and refuse across the state would have been accomplished by the same California company.  This project was moving forward over objections voiced by the labor representative of the Senate’s Interim Finance Committee on Industrial Programs, Mr. Mike Magnani.  This recycling “industry” was tabled once the Legislature began looking into the prison industry operations.

CONWAY ROBERT PDBusinesses and a second labor representative, Rob Conway now sitting upon the legislative Interim Finance Committee will continue to monitor activities of the prison industry to eliminate the possibility of another situation arising that could jeopardize business owners or private workers.  Additionally the amended statute requires the Board of Prison Commissioners to review and approve any new industries or expansion of existing ones.  Hopefully vigilance by the labor representatives will keep the prison industries and expanded partnerships in check and allow more of Nevada’s unemployed to find employment due to the reduction in new prison labor programs that eliminated positions in the past.

Only time will tell if the new regulations prevent another Alpine-styled incident from reoccurring.

Case Study on Alpine Steel: Prison Industry Subsidized by Taxpayers to Compete with Local Businesses Fails Spectacularly

Case Study on Alpine Steel: Prison Industry Subsidized by Taxpayers to Compete with Local Businesses Fails Spectacularly

by Bob Sloan – Cross-Posted from PRWatch

“The taxpayers have been left holding the bag…. As a result of this I think there is going to be a lot more oversight.”

Private prison profitsThose were statements made by Nevada Assemblyman James Ohrenschall in an interview on Vegas Inc. September 21. Mr. Ohrenschall is the former chairman of the Legislature’s Interim Finance Committee on Industrial Programs. At the time of that interview, the IFC Committee was meeting to investigate facts that prompted his concerns.

Ohrenschall was speaking of prison labor and Nevada prison industry’s partnership with Alpine Steel, LLC, that has resulted in nearly half a million dollars of debt owed to the state and a legislative reform of the state’s prison industry program.

When Vegas Inc. anchor Dana Gentry asked the Assemblyman if Nevada’s Department of Corrections (NDOC) or prison industry officials were being held accountable in any way, he responded, “I believe that they will be held accountable…” The oversight authority for prison industries is the Legislature’s Interim Finance Committee on Industrial Programs (IFC-IP). Critics had accused the committee of not providing sufficient oversight or vetting of NDOC contracts with private companies and not enforcing compliance with key statutory duties of the committee. The Committee served, more or less, to “rubber stamp” proposals brought before it by the NDOC without fully determining the impact a new proposed industry would have on Nevada workers and competing businesses.

The Nevada labor force is now represented by two members on the IFC: Robbie Conway of Ironworkers Local 433 and Mike Magnani of Teamsters Local 986. With their dedication to protecting the rights and jobs of Nevada’s workers, it is likely that situations similar to the one involving Alpine will not reoccur.

After the investigation of Alpine Steel, members of the IFC appear to realize that prison labor competing for jobs needed by Nevada’s unemployed is a serious issue that needs constant vigilance. Doubling the number of labor representatives on the committee overseeing prison industries is expected to improve oversight.

With the addition of Conway to the Committee and a new Chairman, the current IFC appears to be a genuine “oversight” body now. They asked key questions, probed for responsive answers and asked IFC member Cox and Deputy Director Connett to provide materials to them supporting answers they provided to the Committee at the initial meeting on the 20th.

Despite Huge Subsidies (and Prison Labor) Alpine Steel Incurs Big Debt

The sad saga of prisoners being used for their labor by private contractors in Nevada continues to amaze the citizens of this state.

Randy Bulloch, CEO of Alpine Steel

Alpine Steel, LLC owner, Randy Bulloch

The story began late last year when steel companies began protesting to NDOC and legislative authorities saying they were being unfairly forced to compete against a local company using inmate labor. Business owners asserted they had lost bids on projects and thus were unable to expand their businesses or hire more workers due to interference from Nevada’s prison industry operations.

Claims were made that dozens of Las Vegas steel workers were being denied jobs and others possibly displaced due to the use of prisoners as a slave-labor force by Alpine Steel, LLC. The NDOC had given Alpine’s owner, Randy Bulloch, a “sweetheart deal” consisting of inmate wage scale set at or below minimum wage (less than 1/2 of the current prevailing wage for Nevada’s steel workers), manufacturing facility leases (set at 66% below the going rate for such space outside prison), and utility costs at NDOC’s reduced rates.

Such state subsidies provided Alpine with a definite advantage over competitors when bids were sought for new projects in and around Las Vegas. Bids won by Alpine due to reduced overhead costs provided by the NDOC included: the “SkyVue Observation Wheel“, the Wet ‘n’ Wild water theme park, bridge work on an overpass over I-15, and the expansion of a mental hospital, among dozens more since 2006.

5th St. bridge over I-15, Las Vegas

5th St. bridge over I-15, Las Vegas

As this story unfolded earlier this year, it was discovered that in spite of receiving the huge financial benefits mentioned above, Alpine was in arrears on payments for inmate wages, staff salaries, utility costs, leases, and workers compensation premiums. In essence, the evidence suggested that the bulk of Alpine’s Las Vegas operation was being quietly financed by the NDOC with state tax dollars.

In addition, prison industry critics learned the IRS had recorded a lien of more than $600,000 dollars against the company; a tax lien had also been filed by the state DOR and several steel suppliers had placed liens against Alpine for failing to pay for materials. (These liens continue to pile up: last month, the IRS recorded a second tax lien upon the company for more than $30,000.)

The story became public through the media and in December 2012 — under pressure from the Board of Prison Commissioners (BPC) and an order from Governor Sandoval — NDOC Director Greg Cox closed down Alpine’s steel fabrication operation at the High Desert State Prison complex. Members of the BPC and the IFC-IP called for some form of personal guarantee from Bulloch to ensure the taxpayers were not left on the hook for nearly half a million dollars owed by Alpine.

Estate of Alpine Steel CEO Randy Bulloch

Randall Bulloch’s estate in Summerlin

In January, Connett and Bulloch reached an agreement on repaying the money Alpine owed to the state. Connett negotiated through Deputy Attorney General Carrie Parker on AG Catherine Cortez Masto’s staff and got her to approve a proposed forbearance agreement setting the Alpine debt at $438,000+ with no interest, penalties or additional fines.

Incredibly, the terms of the agreement failed to include any personal guarantee from Alpine’s owner Bulloch — who resides in a multi-million dollar, 9,400 square foot, guarded and gated estate — while owing millions in state, federal and personal liens — much of that owed to taxpayers.

Though many including the Interim Finance Committee and Secretary of State had demanded such a provision, the final document left any personal guarantee out of the agreement. If a default occurred, Randy Bulloch’s personal property and other assets would be untouchable — and the debt likely uncollectable. The substantial IRS lien precedes and takes precedence over the newly filed NDOC summary judgment, making it less likely the state will be able to recover any of the outstanding debt until the IRS lien is satisfied.

It is incomprehensible to most that in the face of more than a million dollars owed to the IRS, creditors and the state of Nevada, the NDOC would negotiate an agreement on additional debt owed by Alpine without seeking any form of personal guarantee from the company’s owner. Similarly it defied belief that a member of the AG’s staff failed to demand such a personal guarantee for the debt, knowing the repayment plan was being sought for a company that was already in deep financial trouble.

The Alpine contract is at the core of this problematic situation involving the use of state owned facilities and prisoner labor. The NDOC failed to take appropriate action to cure Alpine’s continued default for more than three years. Incredibly, Connett issued a new contract to Alpine in 2011 while the company was in serious default — without requiring the company to come current on its debt — and the IFC-IP approved the contract without knowing of the default(s).

Allowing a contractor to operate for more than four years without making required payments and taking no steps to stop the bleeding of tax dollars before renewing a contract, demonstrates a total lack of responsibility to the state administration and the taxpayers.

Only after the story broke in the media was the Governor, the IFC members and the BPC made aware of the full amount owed due to nonpayment(s). With Attorney General Cortez-Masto sitting on the BPC, the absence of any personal guarantee from Bulloch in the forbearance agreement signed off on by her agency is puzzling.

The NDOC Defends Alpine and Dodges Questions about the Money Due

NDOC Director James "Greg" Cox

NDOC Director James “Greg” Cox

The NDOC’s Director Cox was contacted about details of this debt and any related negotiations. His office forwarded the query to NDOC Deputy Director Brian Connett, who is also the NDOC Public Information Officer. Connett is also the current chairman of the board of the “National Correctional Industries Association” (NCIA), which oversees the Prison Industry Enhancement Certification Program (PIECP).

As of press time, both the Director and Deputy Director have declined to respond. In the discussion at the IFC meeting on the 20th, Connett and Cox specifically directed the members and public to address questions to the AG’s office for a response.

Due to the costly default by Alpine, the state Senate proposed legislation — SB 478 — to amend the rules governing the IFC (NRS 209.461). In addition to adding a second labor representative to the IFC, the bill created a new provision requiring any company wishing to contract with the prison industry program to post a personal guarantee, surety or bond of not less than 100% of the pro-rated annual amount of the contract.

The measure passed and became effective July1, 2013. The NDOC was told to propose new administrative regulations to comply with the changes at the upcoming October 15 meeting of the Board of Prison Commissioners (BPC).

The NDOC’s prison industries (PI) accounts receivable increased rapidly in 2009 to nearly $900,000.

In 2010, the prison industry turned over more than $800,000 in accounts receivable to a collection agency and, for fiscal year 2012, it claimed an additional outstanding accounts receivable balance of $614,200 for a combined potential loss of $1.4 million in revenue in just two years of operations.

On September 20th, the new IFC-IP held its first meeting following the end of the biennial session. One of the main items on that agenda was the discussion of Alpine Steel and the debt owed to the state and state taxpayers.

NDOC Deputy Director Brian Connett

NDOC Deputy Director of Prison Industries, Brian Connett

NDOC Deputy Director Brian Connett read a prepared statement regarding Alpine Steel to the Committee:

“I will read the statement that we have in regards to addressing Alpine Steel…”

“The prison industry has been working very closely with our deputy attorney general and the attorney general’s office on the Alpine Steel situation through our counsel. PI entered into a forbearance agreement with Alpine Steel in January. Basically the terms were that Alpine would make $5,000 monthly payments with balloon payments of a minimum of $20,000 due at the end of June and at the end of December. Alpine made their monthly payments for February through June. Those payments totaled $25,000. Alpine could not make their balloon payment due at the end of June.”

“Again, working with our DAG [Deputy Attorney General], an amendment to the forbearance agreement was created. It amended the balloon payment due to a minimum payment of $10,000 that was due no later than August 30th and an additional minimum payment of $10,000 that was due no later than October 15th.”

“Alpine defaulted on their $5,000 payment due July 15th [and] our DAG and the prison industries quickly filed a summary judgment against Alpine Steel as a result of the breach. The state has been awarded a summary judgment against the Alpine Steel for $428,208 plus post judgment interest growing at the rate of 1/2 percent per month. So being a state agency, this judgment creates a lean on the Alpine’s real and personal property. The collection of these has been turned over to the state controller’s office for the collection process. Thank you.”

Under questioning from Committee members, NDOC’s Deputy Director Connett and NDOC’s Director Cox at times gave somewhat evasive answers.

For example, when asked point blank if any of Nevada’s prisoner-made products were “exported” out of state, Connett responded that state services were the prison industry’s largest customer.

On another matter, they admitted that Alpine’s equipment was still in place at the “High Desert State Prison” (HDSP), saying Alpine had been “locked out” of the facility since December and the NDOC was actively attempting to rent the space to another contractor. Apparently these officials are comfortable with losing a potential $5,000 per month in lease income by keeping the space filled with Alpine’s equipment.

Connett’s new demeanor concerning Alpine has done an about-face of late. Previously, Deputy Director Connett had appeared at several hearings and meetings in support of Alpine, advocating that the company and its prison labor program be kept open, even in the face of the increasing debt. Connett was the sole defender of Alpine in the media and before the BPC and IFC hearings. He now no longer speaks favorably of Alpine in public.

The newest IFC member, Robbie Conway, asked how long it had been since Alpine had been at the prison shop. Director Cox indicated he’d shut the operation down on December 23, 2012, but he did not confirm that Alpine had not been there after that date. Conway went on to ask, “Are we certain that Alpine’s equipment is wholly owned by them or is there is a chance that it is in debt also?”

Connett answered: “There may be some questions on the ownership of some of that property out there.”

Director Cox quickly added: “It is clear and it’s my understanding there is property out there that does not belong to Alpine. So before anything is released, it will go though the attorney general’s office and go through the process.”

Connett added he had inventoried Alpine’s equipment but had failed to secure an appraisal of it.

In a situation such as this where a substantial debt has been incurred, with an ongoing default on a contract and equipment has been seized and being held as collateral against that debt, an evaluation of the “collateral” should be secured quickly to determine the actual financial risk at stake if a judgment results.

Alpine had been in arrears for several years when the NDOC closed down the prison project last December due to the outstanding debt. It is more than odd under those circumstances that since December the NDOC failed to determine the value of the collateral they hold against a $428,000 debt. Now finding that some of the equipment seized and held is not even owned by Bulloch or Alpine puts the state in an even more untenable position to recover the debt.

Key Questions about the Debt Owed Taxpayers Remain Unanswered

Unfinished Alpine Steel SkyVue Observation Wheel

View of stalled SkyVue Observation Wheel project

In response, the Deputy Attorney General — with whom the NDOC has been working on the Alpine case, as noted by Connett’s statement — was asked the following questions that NDOC had failed to answer:

  1. Did the Deputy Director of the NDOC, Mr. Connett and Alpine owner, Mr. Bulloch, negotiate the terms and conditions of the forbearance agreement and then seek approval from the AG’s office?
  2. If the answer is no, that the AG’s office negotiated the terms, did your office seek a personal guarantee from Mr. Bulloch on the debt owed?
  3. In the face of multiple ongoing liens, defaults and creditor/vendor litigation(s) against Alpine Steel, did you suggest a condition that a personal guarantee from Mr. Bulloch be included to ensure repayment should a default occur?
  4. Has anyone come forth and filed a claim of ownership on any of the equipment held by the NDOC at HDSP? [S]ome of the equipment seized by the NDOC as collateral on the debt owed by Alpine has been determined to be the property of a third party. If this is factual, will your office release any Alpine equipment that is claimed by another individual or company?
  5. With IRS and other liens pre-dating the summary judgment awarded to the state last month, will any assets owned by Alpine and held as collateral by the NDOC first go to satisfy those preexisting liens? If so how does the state intend to recover the loss of the $428,000+ debt of Alpine?

The official response from the AG’s office came from its Public Information Officer, Jennifer Lopez:

“My colleague Carrie L. Parker, Deputy Attorney General, Bureau of Government Affairs, mentioned you had questions about Alpine Steel, LLC, Randall Bulloch and the Nevada Dept. of Corrections. We have discussed your question and think because you are seeking attorney-client privileged information, it is best for you to direct this inquiry to Silver State Industries,” which is part of NDOC.

So the “official” response redirects inquiries back to the NDOC which has already directed questions to the AG’s office. Between the two agencies, it appears that in the Alpine matter transparency is non-existent and deliberately so.

During the meeting Connett stated that the PI’s accounts receivable is now $119,567.66 — which would represent a serious decrease from 2012. However, the debt owed by Alpine has been not been collected.

Although the past due account shows a marked recovery, that may be an illusion. Alpine’s $428,208 has merely been transferred from one state department to another state department creating the appearance that PI is recovering financially. The loss of nearly half a million tax dollars still exists but is no longer on PI’s books. Adding Alpine’s default amount to the AR figure provided by Connett shows that without transferring Alpine’s debt, PI’s accounts receivable would be $547,775.66, not significantly different from 2012’s levels.

Earlier this year, Alpine’s license with the Nevada State Contractors Board (NSCB) was reduced to $500,000, but the NSCB allowed Alpine to remain in business.

Despite multiple defaults to the IRS, Nevada’s Department of Taxation, the NDOC contract, vendor invoices and payments on worker’s compensation payments, Alpine has continued to operate, putting out bids on new projects even as Bulloch lays off Alpine employees. Some of those let go have stated that they worked for the company at reduced wages and without receiving overtime due them.

Will Alpine Steel’s License Be Revoked on October 9?

NSCB was asked if that agency is considering revocation of Alpine’s license. NSCB’s Public Information Officer, Jennifer Turner  responded:

“Alpine Steel is scheduled to come before the Board October 9, at which time it is requested they voluntarily surrender their license.”

The NCSB appears to be the sole state agency/department that has decided enough is enough and has taken less than eight months to “cure” Alpine’s non-compliance with state law and hold the company and its owner personally responsible for their actions in some way.

Had the NDOC and the Attorney General’s office adopted the same position months ago, perhaps the amount of the debt owed by Alpine would be guaranteed by Bulloch, providing some hope to taxpayers that the more than half a million dollars owed would be recovered.

It remains to be seen if members of the BPC will ask tough questions — similar to those previously posed to the NDOC and AG’s office — at the upcoming meeting on the 15th. Perhaps they will get complete answers to important questions regarding how and when the state can recover the Alpine debt.

After the Board of Prison Commissioners meeting on the 15th of October, a follow-on article will be published. With the introduction of the new regulations and the removal of Alpine from the prison industry program, perhaps the Alpine saga will finally be put to rest.