Attorney General No.
Secretary of State No.
PRISON INMATE LABOR. TAX CREDIT. INITIATIVE CONSTITUTIONAL AMENDMENT AND STATUTE. Amends state Constitution to permit state prison and county jail officials to contract with public entities, businesses, others, for inmate labor. Limits inmate labor during strike or lockout situations. Adds statutes requiring state prison director to establish joint venture programs for employment of inmates. Requires inmate wages be comparable to non-inmate wages for similar work. Makes inmate wages subject to deductions for: taxes, room and board, lawful restitution fine or victim compensation, and family support. Allows inmate's employer ten percent of wage tax credit against defined state taxes. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local governments: An unknown loss in state General Fund revenues because employer tax credits would exceed state prison inmate income tax payments; undetermined possible revenue to the state Restitution Fund; unknown, potentially major, savings in state costs, primarily from offsets of prison inmate wages against costs of incarceration and reduction of prison time from earned work credits. Magnitude of fiscal effect is dependent on the extent to which the program is implemented. Impact on local governments impossible to estimate because measure does not specify the components of local ordinances.
Governor George Deukmejian, 770 "L" Street, Suite 800, Sacramento, California 95814 And, 1713 "J" Street, Suite 211, Sacramento, California 95814 (916) 448-3853
Prison Inmate Labor. Tax Credit. California Initiative 504 (1990).