THIRD READING  

Bill No: SCR 69

Author: Bradford (D)

Amended: 1/23/20

Vote: 21

SENATE PUBLIC SAFETY COMMITTEE: 5-0, 1/14/20

AYES: Skinner, Bradford, Jackson, Mitchell, Wiener

NO VOTE RECORDED: Moorlach, Morrell

SENATE APPROPRIATIONS COMMITTEE: 6-0, 1/23/20

AYES: Portantino, Bradford, Durazo, Hill, Jones, Wieckowski

NO VOTE RECORDED: Bates

SUBJECT: Prisoners: wages

SOURCE: #cut50

Anti-Recidivism Coalition

Initiate Justice

National Employment Law Project

Lawyer’s Committee for Civil Rights of San Francisco

Nextgen California

Western Center on Law and Poverty

Young Women’s Freedom Center

DIGEST:

This resolution expresses the Legislature’s support for increasing wages for incarcerated people.

ANALYSIS:

Existing law:

1. States pay rates at each facility for paid inmate assignments should reflect the level of skill and productivity required, and will be set with the assistance of the Institutional Inmate Pay Committee. Monthly rates applies to full time employment in the job classifications and will be paid from the support budget or inmate welfare funds. Hourly rates shall apply to half time and partial full time paid employment: (15 CCR § 3041.2 (a)(1)(2).)
2. States exceptions to the pay schedule may be made in extraordinary circumstances. A wage comparable to that paid to inmates in the Prison Industry Authority (CALPIA) inmate pay program may be paid for special projects or assignments that require a high degree of skill or expertise. Also when recruitment or retention of inmate workers is a problem. Any other exceptions requires approval, review and justification on an annual basis by the institution head or designee. (15 CCR § 3041.2 (b).)
3. States pay increases are not automatic or based on the inmate's longevity in an assignment. Increases or reductions in the pay rate are based on the work/training supervisor's recommendation, the inmate's work/training performance reports, and subject to review and approval of the inmate assignment authority. Inmates may receive a pay increase only on a quarterly basis and only until the maximum pay rate for that assignment is obtained. (15 CCR § 3041.2 (c)(d).)

This resolution:

1. States the Senate of the State of California, and the Assembly thereof concurring, supports fair and just wages for incarcerated persons working for the Prison Industry Authority, the Division of Juvenile Facilities, and the Department of Corrections and Rehabilitation.
2. States that the Secretary of the Senate transmit copies of this resolution to the author for appropriate distribution.

Background

According to a study done by the Prison Policy Initiative, prisoners across the country are being paid less today than they were in 2001. “The average of the minimum daily wages paid to incarcerated workers for non-industry prison jobs is now 86 cents, down from 93 cents reported in 2001.” The average maximum daily wage for the same prison jobs has declined more significantly, from $4.73 in 2001 to $3.45 today. The average wage for non-industry prison job across the US is $0.14-$0.63. However, the California average is significantly below the national average at $0.08-$0.37. The California Department of Correction and Rehabilitation’s current pay schedule for inmates has not been updated since it was published in January 1990. The pay schedule has not accounted for the inflation that has occurred over the 30 years. New York is already taking steps to increase prisoner minimum wages to $3 an hour based on a bill introduced by New York Senator Zellnor Myrie.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

SUPPORT: (Verified 1/28/20)

#cut50 (co-source)

Anti-Recidivism Coalition (co-source)

Initiate Justice (co-source)

Lawyer’s Committee for Civil Rights of San Francisco (co-source)

National Employment Law Project (co-source)

Nextgen California (co-source)

Western Center on Law and Poverty (co-source)

Young Women’s Freedom Center (co-source)

A New Way of Life Reentry Project

California Professional Firefighters

California Public Defenders Association

Californians for Safety and Justice

Ella Baker Center for Human Rights

Felony Murder Elimination Project

Legal Services for Prisoners with Children

San Francisco Financial Justice Project

OPPOSITION: (Verified 1/28/20)

None received

ARGUMENTS IN SUPPORT: According to the Western Center on Law and Poverty, a cosponsor of this bill:

With an increased wage, incarcerated workers would have the opportunity to meet their financial responsibilities to their families and prepare for a successful reentry. By increasing wages of incarcerated workers, the state would also benefit by decreasing recidivism rates and promoting public safety as well as increasing state income tax. What’s more, doing so would allow incarcerated workers to pay fines, fees and restitution

associated with their court proceedings, conviction and incarceration.

Prepared by: Nikki Scott / PUB. S. /

1/28/20 15:07:51

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SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2019 - 2020 Regular Session

SCR 69 (Bradford) - Prisoners: wages

*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********

The following information is revised to reflect amendments

adopted by the committee on January 23, 2020

Bill Summary:

SCR 69 would express the Legislature’s support for fair and just wages for incarcerated persons working for the Prison Industry Authority (CALPIA), the Division of Juvenile Facilities (DJJ), and the Department of Corrections and Rehabilitation (CDCR).

Fiscal Impact:

Costs pressures, likely in the hundreds of millions of dollars annually, to the extent that legislative support of fair and just wages results in CALPIA, DJJ, and/or CDCR to increase wages paid to incarcerated persons.

Author Amendments:

Change reference to fire crew members and firefighters to conservation crews members, strike a specified reference to a wage amount, and include information related to the ratio of the incarceration of African-American and Latinx women to white women.

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SENATE COMMITTEE ON APPROPRIATIONS

Senator Anthony Portantino, Chair

2019 - 2020 Regular Session

SCR 69 (Bradford) – Prisoners: wages

Bill Summary:

SCR 69 would express the Legislature’s support for fair and just wages for incarcerated persons working for the Prison Industry Authority (CALPIA), the Division of Juvenile Facilities (DJJ), and the Department of Corrections and Rehabilitation (CDCR).

Fiscal Impact:

Costs pressures, likely in the hundreds of millions of dollars annually, to the extent that legislative support of fair and just wages results in CALPIA, DJJ, and/or CDCR to increase wages paid to incarcerated persons.

Background:

Generally, the CDCR Secretary is vested with the responsibility for the care, custody, treatment, training, discipline, and employment of persons confined in state prison. (Pen. Code, § 5054.) Wages at each facility for paid inmate assignments must be commensurate with the level of skill and productivity required and must be set with the assistance of the Institutional Inmate Pay Committee and in accordance with the following general pay schedule:

(Cal. Code Regs., tit. 15, § 3041.2.)

Monthly rates apply to full-time employment in the job classifications and are paid from the support budget or inmate welfare funds. Hourly rates apply to half-time and partial full-time paid employment. Exceptions to the pay schedule may be made in extraordinary circumstances, and CDCR may pay wages comparable to that paid to inmates in CALPIA programs for special projects or assignments that require a high degree of skill or expertise. (Id.) Wage increases are not automatic or based on a person’s longevity in an assignment but can occur only on a quarterly basis and are determined by the supervisor’s recommendation and the inmate-worker’s performance reports and are subject to review by and approval of the inmate assignment authority. (Ibid.)

The general manager of CALPIA is required to adopt and maintain a compensation schedule for inmate employees. (Pen. Code, § 2811.) The compensation schedule must be based on the quantity and quality of work performed and compensation must be for the performance of the work but in no event can it exceed one-half of what is effectively the statutorily-prescribed minimum wage, unless otherwise allowed by the Penal Code. (Ibid.) The authority has a pay scale for inmate work positions that currently ranges from $0.35 to $1.00 per hour.

Effective January 1, 2020, the state minimum wage in California is $12 per hour for employers with up to 25 employees and $13 per hours for employers with more than 25 employees. (Lab. Code, § 1182.12, subd. (b).) Employers of individuals with developmental and/or physical disabilities and nonprofit organizations such as sheltered workshops or rehabilitation facilities that employ individuals with disabilities may be issued a license allowing for the payment of wages less than the state minimum wage. (Lab. Code, §§ 1191 & 1191.5.)

Proposed Law:

This resolution would make a number of statements, including that “State law empowers CDCR to fix the daily wage rate for persons incarcerated in state prison by regulation, and empowers CALPIA to adopt a compensation schedule for inmate employees based on quantity and quality of work performed but not more than one-half the state minimum wage; and … State law should be amended to address the unfair wage compensation and to provide incarcerated persons with base work protections by redefining prison labor as legal employment.” It would resolve “[t]hat the Legislature supports fair and just wages for incarcerated persons working for [CALPIA, DJJ, and CDCR].

Staff Comments:

According to this resolution, there are about 42,897 incarcerated persons who work up to full-time in state prison.^[1] According to CALPIA, the authority currently has 7,425 authorized inmate-worker positions. A $1 across-the-board increase in wages, assuming a 40-hour work week for 52 weeks, would result in costs increases of approximately $89 million in additional wages; CALPIA specifically would pay roughly $15.4 million in additional wages annually. If wages for incarcerated individuals are increased to half the minimum wage (i.e., $6.50 per hour in 2020), that would result in additional costs to CALPIA alone of between $85 million and $95 million annually. Staff notes that CALPIA anticipated roughly $60 million in gross profit in its 2019-20 annual plan.

This resolution provides that state law should be amended “to provide incarcerated persons with base work protections by redefining prison labor as legal employment.” Legal employment is not a strictly defined term in state law and could mean providing an array of different types of protections, benefits, or rights (e.g., overtime pay) that could result in additional expenses for CALPIA, DJJ, and CDCR.

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1. Based on preliminary, point-in-time data from the Strategic Offender Management System, there are at least 29,995 incarcerated persons employed by CDCR as of January 15, 2020. These are separate from the 3,028 individuals assigned to the conservation (fire) camps, who have a higher pay schedule, and the 7,425 authorized CALPIA positions. ↑

SENATE COMMITTEE ON PUBLIC SAFETY

Senator Nancy Skinner, Chair

2019 - 2020 Regular

Bill No: SCR 69 Hearing Date: January 14, 2020

Subject: Prisoners: Wages

HISTORY

Source: Anti-Recidivism Coalition (ARC); #cut50; Initiate Justice; National Employment Law Project; Lawyer’s Committee for Civil Rights of San Francisco; Nextgen California; Western Center on Law and Poverty; Young Women’s Freedom Center

Prior Legislation: None

Support: A New Way of Life Reentry Project; California Public Defenders Association; Californians for Safety and Justice; Ella Baker Center for Human Rights; Felony Murder Elimination Project; Legal Services for Prisoners with Children

Opposition: None known

PURPOSE

This measure would express the Legislature’s support for fair and just wages for incarcerated persons working for the Prison Industry Authority, the Division of Juvenile Facilities, and the Department of Corrections and Rehabilitation.

Existing law states pay rates at each facility for paid inmate assignments should reflect the level of skill and productivity required, and will be set with the assistance of the Institutional Inmate Pay Committee. Monthly rates applies to full time employment in the job classifications and will be paid from the support budget or inmate welfare funds. Hourly rates shall apply to half time and partial full time paid employment: (15 CCR § 3041.2 (a)(1)(2).)

Existing law states exceptions to the above schedule may be made in extraordinary circumstances. A wage comparable to that paid to inmates in the Prison Industry Authority (CALPIA) inmate pay program may be paid for special projects or assignments that require a high degree of skill or expertise. Also when recruitment or retention of inmate workers is a problem. Any other exceptions requires approval, review and justification on an annual basis by the institution head or designee. (15 CCR § 3041.2 (b).)

Existing law states pay increases are not automatic or based on the inmate's longevity in an assignment. Increases or reductions in the pay rate shall be based on the work/training supervisor's recommendation, the inmate's work/training performance reports, subject to review and approval of the inmate assignment authority. Inmates may receive a pay increase only on a quarterly basis and only until the maximum pay rate for that assignment is obtained. (15 CCR § 3041.2 (c)(d).)

This resolution states, this country has long recognized the value of human labor and the importance of fair wages. California has demonstrated this recognition through its commitment to offering quality pay careers for Californians through enactments like the California Equal Pay Act.

This resolution states, the dignity of every person is inherent, and it is incumbent on the state to protect the dignity of all its citizens.

This resolution states, fair and just wages are intrinsically tied to human dignity.

This resolution states, the factors of disparities within imprisonment are partially a result of disproportionate social factors in African American and Latinx communities that are associated primarily with poverty, employment, housing, and family differences

This resolution states, the poverty rate is roughly 25 percent for both African American and Latinx communities, compared to 9 percent for White American communities.

This resolution states, the median income for African American and Latinx communities is roughly $20,000 less than the median income for White American communities.

This resolution states, African American and Latinx adults are, respectively, 5.9 and 3.1 times more likely to be incarcerated than White adults.

This resolution states, The Department of Corrections and Rehabilitation (CDCR) found in 2015, over 71 percent of prisoners were men of color. More specifically, 42 percent were Latinx and 29 percent were African American.

This resolution states, the State of California currently incarcerates 126,428 people in state prisons and people in prison are routinely required to work for little or no compensation.

This resolution states, Roughly 42,897 people in prison work up to full time, earning anywhere from $0.08 per hour to $3.90 per day in jobs ranging from electricians, carpenters, cooks, orderlies, fire crew members, braille transcribers, silk screen printers, and more.

This resolution states, in 1982, California established the Prison Industry Authority (CALPIA) as a self-supporting business that provides work assignments for approximately 7,000 incarcerated people. CALPIA manages over 100 manufacturing, service, and consumable operations in all 34 CDCR institutions throughout California.

This resolution states, the goods and services produced by CALPIA are sold predominantly to California state agencies and other government entities.

This resolution states, CALPIA generates a gross profit of approximately $60 million annually. They manufacture road signs, clothing, cleaning products, and the furniture used in nearly every room at the State Capitol.

This resolution states, Seven thousand people in prison work up to full time for CALPIA and nearly 1,175 participate in the Inmate Ward Labor program (IWL) and can earn $0.30 to $0.95 per hour.

This resolution states, as of February 20, 2019, 3,384 people in prison work up to full time for the CDCR Conservation Camp program and earn $1.45 to $3.90 per day in jobs protecting people and property from fire. When working as emergency firefighters, they are compensated $1 per hour.

This resolution states, the pay scale for incarcerated people remains relatively low despite increasing inflation.

This resolution states, as an example, the oldest written documentation of the pay schedule for those incarcerated and working in conservation camps is from the CDCR’s Department Operations Manual published on January 10, 1990, which is identical to the current pay schedule.

This resolution states, fifty-five percent of a person’s wages earned in prison are garnished to pay restitution, and low wages mean payments to victims are also low.

This resolution states, low wages means people in prison with families are less able to assist with family financial needs, child support, or the costs of communication and travel for families who have a loved one in prison.

This resolution states, research found that parents entering prison, on average owed $10,543 in child support obligations. Due to a lack of income or full-time employment opportunities, the majority of parents can’t pay child support debt while in prison, and also struggle to pay it after their release.

This resolution states, fifty-two percent of people in state prisons are parents of minors. African American children are 7.5 times, and Latinx children 2.6 times, more likely than White children to have a parent in prison. There are 1.7 million children in the United States that have an incarcerated parent.

This resolution states, returning members of society face many challenges upon reentry, including housing insecurity and difficulty finding and keeping employment.

This resolution states, having a criminal record makes employment difficult for those formerly incarcerated and contributes to their financial distress after release from prison.

This resolution states, a Brookings Institution study found that in the first year of post release, only 55 percent of formerly incarcerated people have any reported earnings. The research found that those with jobs in the first year earned a median of $10,090 and only 20 percent earned more than $15,000.

This resolution states, the inability to earn or save money puts heavy burdens on families once a person is released. According to the study, 66 percent of formerly incarcerated people relied on family and friends as their primary source of financial support upon release.

This resolution states, estimates indicate formerly incarcerated people owe as much as 60 percent of their income to criminal justice debt. According to one source, up to 85 percent of people released from prison owe some form of criminal justice debt, compared to 25 percent in 1991.

This resolution states, people released from prison receive $200 in “gate money” and typically leave prison with little to no financial support, putting them at risk for financial insecurity, hunger, and homelessness.

This resolution states, formerly incarcerated people are almost 10 times more likely to be homeless than the general public.

This resolution states, the high cost of living in California, particularly in Los Angeles where 32 percent of formerly incarcerated people return, can lead to adverse outcomes for people released from prison.

This resolution states, people in prison who earn a fair and just wage can contribute to the growth of the economy and to public safety. These contributions to their families, taxes, restitution, and themselves will support the rehabilitative mandate of CDCR and ultimately save the state money by reducing the number of times people reoffend, the number of children in need of social services, and the likelihood of people seeking out governmental assistance.

This resolution states, state law empowers CDCR to fix the daily wage rate for persons incarcerated in state prison by regulation, and empowers CALPIA to adopt a compensation schedule for inmate employees based on quantity and quality of work performed but not more than one-half the state minimum wage.

This resolution states, state law also empowers a county to provide the payment of wages to juvenile wards, and allows CDCR to pay juvenile wards for work related to the construction, renovation, or repair of juvenile justice facilities.

This resolution states, state law should be amended to address the unfair wage compensation and to provide incarcerated persons with base work protections by redefining prison labor as legal employment.

This resolution resolves, by the Senate of the State of California, the Assembly thereof concurring, that the Legislature supports fair and just wages for incarcerated persons working for the Prison Industry Authority, the Division of Juvenile Facilities, and the Department of Corrections and Rehabilitation.

This resolution resolves, that the Secretary of the Senate transmit copies of this resolution to the author for appropriate distribution.

COMMENTS

1. Need for this Resolution

According to the author:

The State of California currently incarcerates 126,428 people in state prisons and people in prison are routinely required to work for little or no compensation. Roughly 42,897 people in prison work up to full time, earning anywhere from $0.08 per hour to $3.90 per day. Additionally, CALPIA generates a gross profit of approximately $60 million annually from prison labor. Prisoners are earning far less than the Federal and State Minimum wage while generating millions of dollars in profits for the state. This resolution will express the Legislature’s support for fair and just wages for incarcerated persons working for the Prison Industry Authority, the Division of Juvenile Facilities, and the Department of Corrections and Rehabilitation.

2. Prisoner Wages around the Country

According to a study done by the Prison Policy Initiative, prisoners across the country are being paid less today than they were in 2001. “The average of the minimum daily wages paid to incarcerated workers for non-industry prison jobs is now 86 cents, down from 93 cents reported in 2001. The average maximum daily wage for the same prison jobs has declined more significantly, from $4.73 in 2001 to $3.45 today.” The average wage for non-industry prison job across the US is $0.14-$0.63. However, the California average is significantly below the national average at $0.08-$0.37. Senator Zellnor Myrie is a New York senator that has filed a bill to increase prisoner minimum wages to $3 an hour.

3. Argument in Support

According to the Western Center on Law and Poverty, a cosponsor of this bill:

With an increased wage, incarcerated workers would have the opportunity to meet their financial responsibilities to their families and prepare for a successful reentry. By increasing wages of incarcerated workers, the state would also benefit by decreasing recidivism rates and promoting public safety as well as increasing state income tax. What’s more, doing so would allow incarcerated workers to pay fines, fees and restitution associated with their court proceedings, conviction and incarceration.

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