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SB1766 • 2026

inmate labor; wages

SB1766 - inmate labor; wages

Labor
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Sally Ann Gonzales
Last action
2026-02-09
Official status
Senate second read
Effective date
Not listed

Plain English Breakdown

The bill does not provide specific details on funding sources or cost implications of these changes.

Inmate Labor; Wages

This bill amends Arizona Revised Statutes sections 31-254 and 31-284, setting new wage requirements for prisoner labor and establishing rules for the distribution of their earnings.

What This Bill Does

  • Sets a minimum wage of at least $2 per hour for prisoner labor in state prisons or private prisons under contract with the state, unless they are part of an Arizona correctional industries program where it could be higher.
  • Requires mandatory deductions from prisoners' wages if their earnings are less than $2 per hour to fund a dedicated discharge account until it reaches either $50 (for natural life sentences) or $250.
  • Allocates 5% of prisoners' gross wages to the transition program fund, which supports services for prisoners transitioning back into society after release.

Who It Names or Affects

  • Prisoners who work in state prisons or private prisons under contract with the state of Arizona.

Terms To Know

Minimum Wage
The lowest hourly rate at which employers can legally pay workers, set specifically for prisoner labor.
Transition Program Fund
A fund established to support services and costs related to the transition program that helps prisoners prepare for life after release.

Limits and Unknowns

  • The bill does not specify what happens if prisoners earn more than $2 per hour.
  • Details about specific transition program services are not fully explained in this summary.

Bill History

  1. 2026-02-09 Senate

    Senate second read

  2. 2026-02-05 Senate

    Senate Rules: None

  3. 2026-02-05 Senate

    Senate Government: None

  4. 2026-02-05 Senate

    Senate first read

Official Summary Text

SB1766 - inmate labor; wages

Current Bill Text

Read the full stored bill text
SB1766 - 572R - I Ver

REFERENCE TITLE:
inmate labor; wages

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SB 1766

Introduced by

Senator
Gonzales

AN
ACT

amending sections 31-254 and 31-284,
Arizona Revised Statutes; relating to prisoners.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 31-254, Arizona Revised
Statutes, is amended to read:

START_STATUTE
31-254.

Compensation for labor performed; price of prison made articles;
distribution of earnings; workers' compensation

A. Each prisoner who is engaged in productive work
in any state prison or institution under the jurisdiction of the department or
a private prison under contract with the department as a part of the prison
industries program shall receive for the prisoner's work the compensation that
the director determines. The compensation shall be in accordance
with a graduated schedule based on quantity and quality of work performed and
skill required for its performance but shall not
exceed one
dollar fifty cents per hour unless the prisoner is employed in an Arizona
correctional industries program pursuant to title 41, chapter 11,
article 3
be less than the minimum wage prescribed
by section 23-363
. If the director enters into a
contract pursuant to section 41-1624.01 with a private person, firm,
corporation or association the director shall prescribe prisoner compensation
of at least two dollars per hour
that is
commensurate with the market rate for similar contracts in this state
.�
Compensation shall not be paid to prisoners for attendance at educational
training or treatment programs, but compensation may be paid for work training
programs.

B. Whenever a price is fixed for any article,
material, supply or service to be produced, manufactured, supplied or performed
in connection with the industries program of the department, the compensation
paid to prisoners shall be included as an item of cost in fixing the price.

C. The compensation of prisoners shall be paid out
of the fund established pursuant to section 41-1624 or out of funds
appropriated for that purpose by the legislature when required.

D. If the compensation due a prisoner
is less than two dollars per hour, mandatory deductions shall be taken for the
following purposes in the order specified:

1. Twenty-five percent of the
prisoner's gross wages until the prisoner's dedicated discharge account
registers a two hundred fifty dollar balance or, if the prisoner is serving a
sentence of natural life, a fifty dollar balance.

2. If the prisoner initiates a
lawsuit, twenty percent from all deposits to the prisoner's spendable account
until the court fees are collected in full.

3. If the prisoner was not convicted
of a violation of title 28, chapter 4, five percent of the prisoner's gross
wages shall be used exclusively to fund the transition program established by
section 31-281.� All monies collected under this paragraph shall be
deposited, pursuant to sections 35-146 and 35-147, in the
transition program fund established by section 31-284.

4. Thirty percent of the prisoner's
wages for court ordered dependent care.

E.
D.
If
the
prisoner receives
compensation
due a
prisoner equals or exceeds two dollars per hour
, the director shall
credit to the prisoner's spendable account established pursuant to section 31-230
an amount equaling
fifty cents
$.50
per
hour for each hour compensation is due plus ten percent of the adjusted balance
remaining after the mandatory deductions are taken. Mandatory deductions shall
be taken for the following purposes in the order specified:

1. Thirty percent of the prisoner's
wages for court-ordered dependent care.

1.
2.
Twenty-five
percent of the prisoner's gross wages until the prisoner's dedicated discharge
account registers a
two hundred fifty dollar

$250
balance or, if the prisoner is serving a sentence of
natural life, a
fifty dollar
$50

balance.

2.
3.
If
the prisoner initiates a lawsuit, twenty percent from all deposits to the
prisoner's spendable account until the court costs are collected in full.

3.
4.
If
the prisoner was not convicted of a violation of title 28, chapter 4, five
percent of the prisoner's gross wages to fund the transition program
established by section 31-281.� All monies collected under this paragraph
shall be deposited, pursuant to sections 35-146 and 35-147, in the
transition program fund established by section 31-284.

4.
5.
Thirty
percent of the prisoner's wages for the room and board costs of maintaining the
prisoner at the facility.

5. Thirty percent of the prisoner's
wages for court ordered dependent care.

F.
E.
After
the mandatory deductions and obligations are paid by the prisoner, the
remaining monies shall be credited to the prisoner's retention account
established by the director pursuant to section 31-261, subsection B.

G.
F.
A
prisoner may gain access to the prisoner's trust fund or retention account for
emergency purposes at the sole discretion of the director.

H.
G.
Any
monies not expended from the contributing prisoner's trust fund or retention
account for the purposes prescribed in subsection
E
D
of this section shall be paid to the prisoner on release
pursuant to section 31-228.

I.
H.
If
any prisoner escapes, the director shall determine what portion of the
prisoner's earnings shall be forfeited, and the forfeited amount shall be
deposited in the special services fund established by section 41-1604.03.

J.
I.
This
section is not intended to restore, in whole or in part, the civil rights of
any prisoner. A prisoner who is compensated under this section shall
not be considered to be an employee of or employed by this state, the
department or any private person, firm, corporation or association engaged in a
contract pursuant to section 41-1624.01, and the prisoner does not come
within any of the provisions of the workers' compensation provided in title 23,
chapter 6 and is not entitled to any benefits under title 23, chapter 6 whether
on behalf of the prisoner or of any other person. This subsection
does not apply to prisoners who are employed pursuant to a federally certified
prison industry enhancement program established pursuant to section 41-1674.

END_STATUTE

Sec. 2. Section 31-284, Arizona Revised
Statutes, is amended to read:

START_STATUTE
31-284.

Transition program fund

The transition program fund is established consisting of
the
monies collected pursuant to section 31-254,
subsection D, paragraph
3 and subsection E, paragraph 3
4
and section 31-285, subsection C.� The department shall
administer the fund to pay for any costs related to the administration of the
transition program and for transition program services.� Monies in the fund are
subject to legislative appropriation and are exempt from the provisions of
section 35-190 relating to lapsing of appropriations.
END_STATUTE