Data were obtained through telephone interviews with correctional staff in 14 States with prison industry programs, reviews of selected relevant readings, and conversations with experts. Federal laws and programs pertaining to prison industries are the Free Venture Prison Industries Program, which provided Federal 'seed money' to several States for remodeling prison industries to simulate private enterprise (1975), and the Prison Industry Enhancement Act, which funded the development of prison industries demonstration projects. Proposed legislation (Senate Bill 1597) would further strengthen the capabilities of State prison industries. Prison industries in the 14 States surveyed are either owned and administered by the State, owned and managed by private enterprises, operated by private-State partnerships, or owned or operated by inmates under State supervision. Most programs continue to limit products to 'State-use' goods. Most programs have reduced inmate idleness and improved their work habits and attitudes. The rising costs of incarceration have limited the ability of prison industries to decrease State incarceration costs significantly. Descriptions of the Texas, Minnesota, and Kansas prison industry programs and a chart displaying the characteristics of prison industries in the 14 States.