S.F. 464 Section 1. Section 904.508, subsection 2, Code 2023, is 1 amended to read as follows: 2 2. Pursuant to section 904.702 , the director shall 3 establish and maintain an inmate savings fund in an 4 interest-bearing account for the deposit of all or part of an 5 inmate’s allowances wages and amounts, except amounts directed 6 to be deposited in the inmate telephone fund established in 7 section 904.508A , sent to the inmate from a source other than 8 the department. All or part of an inmate’s allowances wages 9 and amounts, except amounts directed to be deposited in the 10 inmate telephone fund established in section 904.508A , from 11 a source other than the department shall be deposited into 12 the savings fund, until the inmate’s deposit is equal to one 13 hundred dollars as provided in section 906.9 . If an inmate’s 14 deposits are equal to or in excess of one hundred dollars, the 15 inmate may voluntarily withdraw from the savings fund. The 16 director shall notify the inmate of this right to withdraw 17 and shall provide the inmate with a written request form 18 to facilitate the withdrawal. If the inmate withdraws and 19 the inmate’s deposits exceed the amount due as provided in 20 section 906.9 , the director shall disburse the excess amount 21 as provided for allowances wages under section 904.702 , except 22 the director shall not deposit the excess amount in the inmate 23 savings fund. If the inmate chooses to continue to participate 24 in the savings fund, the inmate’s deposits shall be returned 25 to the inmate upon discharge, parole, or placement on work 26 release. Otherwise, the inmate’s deposits shall be disposed 27 of as provided in subsection 3 . An inmate’s deposits into 28 the savings fund may be used to provide the money due the 29 inmate upon discharge, parole, or placement on work release, as 30 required under section 906.9 . Interest earned from the savings 31 fund shall be placed in a separate account, and may be used for 32 purchases approved by the director to directly and collectively 33 benefit inmates. 34 Sec. 2. Section 904.701, subsection 2, Code 2023, is amended 35 -1- LSB 2279XS (4) 90 as/rh 1/ 4

S.F. 464 to read as follows: 1 2. The director may when practicable shall pay the 2 inmate an allowance as the director deems proper in view of 3 the circumstances, and in view of the cost attending the 4 maintenance of the inmate. The allowance is a gratuitous 5 payment and is not a wage arising out of an employment 6 relationship. The payment shall not exceed the amount paid to 7 free labor for a like or equivalent service hourly wage which 8 shall not be less than the minimum wage established in section 9 91D.1, subsection 1, paragraph “b” . 10 Sec. 3. Section 904.702, subsection 1, Code 2023, is amended 11 to read as follows: 12 1. If allowances are paid pursuant to section 904.701 , the 13 The director shall establish an inmate account , for deposit of 14 those allowances inmate wages paid pursuant to section 904.701 15 and for deposit of moneys sent to the inmate from a source 16 other than the department of corrections. The director may 17 deduct an amount, not to exceed ten percent of the amount of 18 the allowance wage , unless the inmate requests a larger amount, 19 to be deposited into the inmate savings fund as required under 20 section 904.508, subsection 2 . In addition to deducting a 21 portion of the allowance wage , the director may also deduct 22 from an inmate account any amount, except amounts directed 23 to be deposited in the inmate telephone fund established in 24 section 904.508A , sent to the inmate from a source other than 25 the department of corrections for deposit in the inmate savings 26 fund as required under section 904.508, subsection 2 , until 27 the amount in the fund equals the amount due the inmate upon 28 discharge, parole, or placement on work release. The director 29 shall deduct from the inmate account an amount the inmate is 30 legally obligated to pay for child support. The director 31 shall deduct from the inmate account an amount established 32 by the inmate’s restitution plan of payment. The director 33 shall also deduct from any remaining account balance an amount 34 sufficient to pay all or part of any judgment against the 35 -2- LSB 2279XS (4) 90 as/rh 2/ 4

S.F. 464 inmate, including but not limited to judgments for taxes and 1 child support, and court costs and fees assessed either as a 2 result of the inmate’s confinement or amounts required to be 3 paid under section 610A.1 . Written notice of the amount of 4 the deduction shall be given to the inmate, who shall have 5 five days after receipt of the notice to submit in writing any 6 and all objections to the deduction to the director, who shall 7 consider the objections prior to transmitting the deducted 8 amount to the clerk of the district court. The director need 9 give only one notice for each action or appeal under section 10 610A.1 for which periodic deductions are to be made. The 11 director shall next deduct from any remaining account balance 12 an amount sufficient to pay all or part of any costs assessed 13 against the inmate for misconduct or damage to the property of 14 others. The director may deduct from the inmate’s account an 15 amount sufficient to pay for the inmate’s share of the costs of 16 health services requested by the inmate and for the treatment 17 of injuries inflicted by the inmate on the inmate or others. 18 The director may deduct and disburse an amount sufficient 19 for industries’ programs to qualify under the eligibility 20 requirements established in the Justice Assistance Act of 1984, 21 Pub. L. No. 98-473, including an amount to pay all or part 22 of the cost of the inmate’s incarceration. The director may 23 pay all or any part of remaining allowances paid pursuant to 24 section 904.701 directly to a dependent of the inmate, or may 25 deposit the allowance wage to the account of the inmate, or 26 may deposit a portion and allow the inmate a portion for the 27 inmate’s personal use. 28 EXPLANATION 29 The inclusion of this explanation does not constitute agreement with 30 the explanation’s substance by the members of the general assembly. 31 This bill requires inmates to be paid the Iowa minimum 32 wage for labor performed in or while under the custody of 33 an institution under the control of the Iowa department of 34 corrections. 35 -3- LSB 2279XS (4) 90 as/rh 3/ 4

S.F. 464 Current law provides that the director of the department of 1 corrections may when practicable pay the inmate an allowance as 2 the director deems proper in view of the circumstances, and in 3 view of the cost attending the maintenance of the inmate. The 4 allowance is a gratuitous payment and is not a wage arising out 5 of an employment relationship. The payment shall not exceed 6 the amount paid to free labor for a like or equivalent service. 7 The bill provides that the director shall pay the inmate 8 an hourly wage which shall not be less than the minimum wage 9 established in Code section 91D.1(1)(b). 10 The bill provides that the director shall establish an 11 inmate account for deposit of inmate wages paid pursuant to 12 Code section 904.701 and for deposit of moneys sent to the 13 inmate from a source other than the department of corrections. 14 The director may deduct up to 10 percent of the amount of 15 the wage, to be deposited into the inmate savings fund. The 16 director may also deduct from an inmate account any amount 17 sent to the inmate from a source other than the department 18 of corrections for deposit in the inmate savings fund until 19 the amount in the fund equals the amount due the inmate upon 20 discharge, parole, or placement on work release. The director 21 shall deduct from the inmate account the following: an amount 22 the inmate is legally obligated to pay for child support; an 23 amount established by the inmate’s restitution plan of payment; 24 an amount sufficient to pay all or part of any judgment against 25 the inmate, including but not limited to judgments for taxes 26 and child support; court costs and fees assessed as a result of 27 the inmate’s confinement; and an amount sufficient to pay all 28 or part of any costs assessed against the inmate for misconduct 29 or damage to the property of others. The director may pay all 30 or any part of remaining wages paid directly to a dependent 31 of the inmate, or may deposit the wages to the account of the 32 inmate, or may deposit a portion and allow the inmate a portion 33 for the inmate’s personal use. 34 -4- LSB 2279XS (4) 90 as/rh 4/ 4