THE OVERALL GOAL OF THE STUDY WAS TO IDENTIFY SHORT-TERM AND LONG-TERM STRATEGIES FOR CHANGING PRISON INDUSTRIES INTO SELF-SUPPORTING LABOR SYSTEMS WHILE SIMULTANEOUSLY PROMOTING THE REHABILITATION OF PRISON INMATES. ALL OF THE MAJOR TASKS OF THE STUDY REPORTED IN THIS VOLUME WERE CONDUCTED IN CONNECTICUT, WITH THE MAJOR EMPHASIS ON THE PRISON INDUSTRIES IN THE CONNECTICUT CORRECTIONAL INSTITUTIONS OF SOMERS, A MAXIMUM SECURITY PRISON. THE INDIVIDUAL STUDIES PERFORMED IN THIS SYSTEM ARE OUTLINED. THEY INCLUDE A JOB MARKET SURVEY, AN INMATE MANPOWER SURVEY, AND A PRODUCT/SERVICE SALES ANALYSIS. MAJOR CONSIDERATIONS WHICH MUST BE TAKEN INTO ACCOUNT WITH SUCH AN ANALYSIS -- PRODUCT AND LABOR SUPPLY AND DEMAND, CORRECTIONAL POLICIES, LEGAL CONSTRAINTS -ARE DISCUSSED. A NEW CONCEPT IN PRISON INDUSTRIES, THE FREE VENTURE MODEL, IS PROPOSED TO MAKE CORRECTIONAL INDUSTRIES EMULATE PRIVATE EMPLOYMENT AS CLOSELY AS POSSIBLE WITHIN THE PRISON SETTING. THE PROGRAM WOULD CREATE A REALISTIC WORK ENVIRONMENT FOR INMATES, PROVIDE FOR PARTIAL REIMBURSEMENT TO THE STATE OF COSTS OF CUSTODY AS WELL AS RESTITUTION PAYMENTS TO VICTIMS, GRADUALLY PREPARE INMATES FOR SUCCESSFUL REINTEGRATION OF OFFENDERS INTO THE COMMUNITY, AND CREATE SELF-SUPPORTING OR EVEN PROFIT-MAKING BUSINESS OPERATIONS. THE VOLUME INCLUDES A DISCUSSION OF THE RELATIONSHIP OF THE FREE VENTURE PROGRAM TO OTHER COMPONENTS OF THE INSTITUTION, AND THE FINAL SECTION OUTLINES A PROPOSED IMPLEMENTATION STRATEGY FOR THE PROGRAM. ITEMS FOR SHORT-TERM CHANGE, SUCH AS ESTABLISHING A NUMBER OF FREE VENTURE INDUSTRY SHOPS AND DEVELOPING A MARKETING PROGRAM, ARE DISCUSSED. THESE ARE FOLLOWED BY RECOMMENDATIONS FOR LONG-TERM CHANGE, INVOLVING SUCH ITEMS AS PROGRAM GROWTH DECISIONS AND LEGISLATIVE CHANGES. CHARTS AND DIAGRAMS ARE PROVIDED THROUGHOUT THE VOLUME TO ILLUSTRATE THE EVALUATIONS AND RECOMMENDATIONS. FOR RELATED DOCUMENTS, SEE NCJ 46041-46044, 46046, AND 45627.