FIRST, THE EXISTING AND PLANNED CORRECTIONAL SYSTEM IN CONNECTICUT ARE DESCRIBED, WITH ATTENTION TO FACILITIES, PROGRAMS, AND BUDGETS, FUTURE GOALS, FACILITIES, AND PROGRAMS ARE UNDERSCORED, AND A MODEL PRISON INDUSTRIES PROJECT IS DISCUSSED. THIS IS FOLLOWED BY A DESCRIPTION OF THE OPERATIONAL FREE VENTURE MODEL FOR CORRECTIONAL INDUSTRIES DEVELOPED JOINTLY BY THE DEPARTMENT OF CORRECTION, ECON, INC., AND THE AMERICAN FOUNDATION, INC. THE DOMINANT THEME OF THE MODEL PRISON PROJECT IN CONNECTICUT IS PRODUCTIVE LABOR WITH PRIVATE SECTOR EFFICIENCY, WAGES, AND RELEVANCE. THE BROAD CHARACTERISTICS OF THE FREE VENTURE MODEL ARE: (1) A REALISTIC WORK ENVIRONMENT, INCLUDING A FULL WORKDAY, INMATE WAGES BASED UPON WORK OUTPUT, AND TRANSFERABLE TRAINING AND JOB SKILLS; (2) PARTIAL REIMBURSEMENT OF THE STATE BY INMATES FOR CUSTODY AND WELFARE COSTS; (3) GRADUATED PREPARATION OF INMATES FOR RELEASE INTO THE COMMUNITY; (4) FIXING THE RESPONSIBILITY FOR JOB PLACEMENT OF INMATES UPON RELEASE INTO THE COMMUNITY, USING FINANCIAL INCENTIVES AND PENALTIES; AND (5) SELF-SUPPORTING OR PROFITMAKING BUSINESS OPERATIONS. A GENERAL SCHEMA OF THE FREE VENTURE MODEL IS PROVIDED, INCLUDING DESCRIPTIONS OF CLASSIFICATION PROCESSES, MANAGEMENT STRUCTURE, COMPENSATION LEVELS, JOB PLACEMENT PROCEDURES, HIRING PROCEDURES, DISCIPLINARY PROCESSES, AND TARGETED INDUSTRIES. WORKER EVALUATION PROCEDURES AND POSTRELEASE FOLLOWUP ARE ALSO DISCUSSED. NEXT, DESCRIPTIONS ARE PRESENTED OF HOW THE OPERATIONAL MODEL WILL WORK WITHIN TWO SPECIFIC CONNECTICUT CORRECTIONAL INSTITUTIONS, SOMERS AND ENFIELD, DURING THE FIRST PROJECT YEAR; HOW IT WILL EXPAND INTO A THIRD INSTITUTION DURING THE SECOND PROJECT YEAR; AND HOW IT WILL MOVE INTO TWO OTHERS IN THE THIRD YEAR. WORK AND MANPOWER SCHEDULING, WORKER CLASSIFICATION, PROMOTION AND TRANSFER PROCEDURES, AND THE MODEL'S RELATIONSHIP TO NONPARTICIPATING PARTS OF THE INSTITUTIONS ARE DISCUSSED. AN INDUSTRY INSTITUTION MODEL IS ALSO DISCUSSED REGARDING SITE SELECTION AND INSTITUTIONAL PROCEDURES. A LIST OF THOSE ASPECTS OF THE MODEL WHICH HAVE BEEN IMPLEMENTED TO DATE IS ALSO PROVIDED. THE FINAL SECTIONS PRESENT THE PROJECT TIMETABLE, THE PROPOSED BUDGET, AND THE BUDGET NARRATIVE. A SOLAR ENERGY PROPOSAL AND A SCHEDULE OF RENOVATION COSTS ARE APPENDED. GRAPHIC AND TABULAR DATA ARE INCLUDED. (AUTHOR ABSTRACT MODIFED--KBL)