IMPLEMENTED NATIONALLY IN 1974, THIS PROCEDURE PROVIDES THREE LEVELS OF REVIEW FOR PRISONER COMPLAINTS - THE WARDEN'S OFFICE, THE REGIONAL DIRECTOR OF PRISONS, AND THE GENERAL COUNSEL'S OFFICE OF THE BUREAU IN WASHINGTON, D.C. ALSO DISCUSSED IS THE QUESTION OF WHETHER EXHAUSTION OF THIS ADMINISTRATIVE REMEDY IS REQUIRED PRIOR TO AN INMATE'S FILING OF A LAWSUIT IN COURT. THE INITIAL STATISTICS AND OTHER EARLY RESULTS OF THE PROCEDURE PRESENTED INDICATE THE SYSTEM'S EFFECTIVENESS (SOME OF THE WARDEN'S DECISIONS HAVE BEEN OVERRULED AT HIGHER STAGES AND NEW RULES AND DEFINITIONS HAVE BEEN PROMULGATED BY THE BUREAU IN RESPONSE TO NUMEROUS INMATE GRIEVANCES). ALTERNATIVE METHODS OF GRIEVANCE RESOLUTION IN THE PRISONS ARE ALSO SURVEYED. CONSIDERED ARE INTERNAL GRIEVANCE MECHANISMS IN MARYLAND, WISCONSIN, AND ILLINOIS AND INMATE PARTICIPATORY GRIEVANCE SYSTEMS AT WALLA-WALLA PRISON IN THE STATE OF WASHINGTON AND THE MASSACHUSETTS STATE PRISON AT CONCORD. THE USE OF PENAL OMBUDSMEN AS IMPARTIAL INVESTIGATORS OF INMATE COMPLAINTS IS ALSO HIGHLIGHTED.