Allan smells marijuana in the house and causes all sorts of drama when he causes the housemates to get drug tested.
The men have trouble getting physically aroused, so they resort to using potency meds to regain their form. But trouble arises when they discover that the meds are actually meant for horses. Meanwhile, Carly attempts to break the world record in pogo sticking to make up for the time she was disqualified for trying the same feat back in her youth, which she claims was the reason why she became a criminal.
A heatwave affects each of the housemates differently: Alan and Sebastian fight about race; Serenity would rather go back to jail than stay in a AC-less house; and, Carly becomes attracted to Eulogio.
The inmates try to work out their issues with their parents during Parent's Day.
Kenny takes the inmates into the woods for a team-building camping trip. Part of his plan involves abandoning them in the woods for a day to teach them how to work together and use the system they've been taught. But Kenny gets lost in the woods himself, causing the inmates to abandon the teachings.
The inmates "welcome" a new member to the house, a really good con artist named Ben Skull. He quickly sneaks his way into the hearts of all the housemates, except Serenity.
The Head of Corrections wants the inmates to scare straight his troubled nephew, who relishes in wreaking havoc on adults, and dangles reduced sentences as their prize. What seems like a simple task soon proves to be rather difficult.
Kenny orders Sebastian and Alan to tutor Serenity, Carly and Eulogio so that they can take and pass the GED exam. Once she is forced to give up marijuana, Carly shows a particular aptitude for learning; and, Serenity gets the chance to be a TV star on a show called "America's Dumbest Criminals."
Kenny pushes the inmates out of the house and to the food court at the mall so that they can get jobs. Meanwhile, a rat runs loose through the house.
Alan tries to extend his stay at the halfway home after his wife hires a top defense attorney to set him free. He'd rather be anywhere than with that "she-devil." Meanwhile, Eulogio prepares to welcome into the home a former john of his but discovers that the man isn't there to rekindle their fling, but instead get an apology from Eulogio to appease his angry wife.