California 2017-2018 Regular Session

California Assembly Bill AB2560

Introduced
2/15/18  
Introduced
2/15/18  
Refer
3/22/18  
Refer
3/22/18  
Report Pass
3/22/18  

Caption

Taxation: prison contracts: goods and services.

Impact

The bill would impose specific tax rates based on contract values: a tax of up to 10% for contracts exceeding $50 million, while healthcare and private prison vendor contracts are exempt. By collecting this tax, the bill aims to generate significant funding for early intervention and educational programs, thereby addressing issues at their root to reduce future incarceration. Additionally, the bill imposes penalties on vendors that fail to comply with the tax provisions, creating an added layer of accountability.

Summary

Assembly Bill 2560, introduced by Assembly Member Thurmond, aims to implement a new tax on vendors who contract with the California Department of Corrections and Rehabilitation (CDCR) for the provision of goods and services. The legislation directs tax revenues into the State Incarceration Prevention Fund, which is designated to support preschool and after-school programs aimed at reducing incarceration rates. This approach reflects a focus on preventative measures in the state's corrections system, rather than solely on punitive measures.

Sentiment

General sentiment around AB 2560 appears to support the bill's goals of using taxation as a tool for funding preventive social services, reflecting a progressive shift in handling issues surrounding incarceration. However, there may also be concerns about the financial implications for vendors and the potential for increased costs being passed down to the state. The proposal has sparked discussions about balancing the need for effective correctional oversight with the financial realities of contracting with state agencies.

Contention

Notably, there are potential contentions regarding the specifics of tax enforcement, with critics pointing to the complexity of monitoring compliance effectively. Stakeholders may also debate the fairness of the tax rates imposed on vendors and the concern that the penalties may disproportionately affect smaller providers who engage with the CDCR. Furthermore, the exemption of healthcare contracts and private prison vendors from taxation raises questions about equitable treatment across different sectors within the corrections landscape.

Companion Bills

No companion bills found.

Previously Filed As

CA SB790

Public records: contracts for goods and services.

CA AB3193

State acquisitions of goods and services: rehabilitation services.

CA SB814

Household goods and services.

CA AB2709

Prison visitation.

CA SB326

The Behavioral Health Services Act.

CA AB1875

Prisons: canteens.

CA AB958

Prisons: visitation.

CA AB152

Background checks and fingerprinting: state employment, licensing, and contracting.

CA SB152

Background checks and fingerprinting: state employment, licensing, and contracting.

CA AB628

Prisons: employment of inmates.

Similar Bills

CA AB2303

Education finance: instructional materials and teacher recruitment: computer science.

CA AB43

Taxation: prison contracts: goods and services.

CA SB129

Budget Act of 2021.

CA AB129

State employment: State Bargaining Units 16 and 18: agreements.

CA AB1688

Community health services: California Mental Health Planning Council, California Children’s Services program, Alameda County pilot program, and Medi-Cal managed care.

CA SB170

Budget Act of 2021.

CA SB102

Budget Act of 2023.

CA AB102

Budget Act of 2023.