THE STATE-OF-THE-ART OF PRISON INDUSTRIES IS ESPECIALLY DIFFICULT TO SUMMARIZE BECAUSE EACH STATE HAS DIFFERENT LEGISLATION, POLITICAL CONSTRAINTS, ADMINISTRATIVE POLICIES, FINANCIAL RESOURCES, AND PHILOSOPHIES. HOWEVER, A SEARCH OF THE LITERATURE PLUS ONSITE VISITS TO GEORGIA, PENNSYLVANIA, CONNECTICUT, COLORADO, WASHINGTON, MINNESOTA, ILLINOIS, AND TEXAS INDICATES THAT THE MAJORITY OF SYSTEMS ARE 'STEPCHILDREN' FINANCIALLY AND PHILOSOPHICALLY, ALTHOUGH DURING THE PAST 5 YEARS SIGNIFICANT CHANGES HAVE TAKEN PLACE. MEANINGFUL WORK IN PRISONS BEGAN IN THE EARLY HOUSES OF CORRECTIONS. THE DEVELOPMENT OF A PRISON FACTORY AT AUBURN IN 1824 OPENED THE ERA OF SELF-SUPPORTING INDUSTRIES, AN IDEA WHICH REACHED ITS PEAK IN THE EARLY 1900'S. DURING THE DEPRESSION, THERE WAS ACTIVE OPPOSITION TO PRISON LABOR AND PRISON FACTORIES. DURING THE 1940'S AND 1950'S, EMPHASIS WAS PLACED ON FILLING IDLE TIME AND TRYING TO DEVELOP TREATMENT MODALITIES. AT PRESENT, PRISON INDUSTRIES LABOR UNDER RESTRICTIONS IMPOSED BY THE HAWES-COOPER ACT OF 1929 AND THE ASHURST-SOMERS ACT OF 1935 WHICH PROHIBIT INTERSTATE SHIPMENT OF PRISON-MADE PRODUCTS. IN ADDITION, MOST STATES LIMIT THE SALE OF SUCH GOODS. MOST PRISON INDUSTRIES OPERATE WITH OUTMODED EQUIPMENT, LOW PRODUCTIVITY LEVELS, OVEREMPLOYMENT, LACK OF QUALIFIED STAFF, FEW SKILLED INMATES EMPLOYEES, CONSTANT LABOR TURNOVER, AND RESTRICTED MARKETS. HOWEVER, PRESSURES FOR CHANGE ARE MOUNTING. CORRECTIONS PERSONNEL BELIEVE REHABILITATION, NOT PROFIT, SHOULD BE THE PRIMARY GOAL, AND MOVEMENTS ARE AFOOT TO COMBINE PRISON INDUSTRIES WITH VOCATIONAL REHABILITATION PROGRAMS. OKLAHOMA HAS DEVELOPED A 10-YEAR PLAN TO PROVIDE USEFUL PRODUCTS AND SERVICES AND TO ESTABLISH MORE REALISTIC WORKING CONDITIONS IN PRISON INDUSTRIES. SOUTH CAROLINA IS ATTEMPTING TO INTEREST PRIVATE CORPORATIONS IN ESTABLISHING BRANCHES IN PRISONS. MINNESOTA AND TEXAS BOTH HAVE COMPREHENSIVE INDUSTRY SYSTEMS WHICH PROVIDE BOTH SERVICES AND PRODUCTS FOR STATE AGENCIES AND FOR SALE. IN TEXAS, THE PRISONS COMPLETELY REBUILD MORE THAN 1,000 SCHOOL BUSES A YEAR FOR THE STATE'S SCHOOL SYSTEMS. THE FREE VENTURE MODEL FOR CORRECTIONAL INDUSTRIES, DEVELOPED AS A RESULT OF THE ONSITE VISITS, IS PRESENTED. THE FOCUS OF THIS SERIES OF RECOMMENDATIONS IS MEANINGFUL WORK AT INCENTIVE WAGES WITH GOOD EQUIPMENT AND SUPERVISION TO BUILD PRIDE IN THE WORK BEING DONE AND TO DEVELOP MEANINGFUL JOB SKILLS. (GLR)