Committee approves amendment ensuring private companies using prison labor pay market rents and wage floors for modular housing work

The Committee on Commerce, Labor and Economic Development recommended House Bill 2596 favorably as amended after members adopted an amendment aimed at limiting potential private-market distortions and protecting compensation standards for incarcerated workers.

Revisor Charles Reimer summarized the bill as permitting the Secretary of Corrections to contract with businesses and organizations for fabrication or production of modular or manufactured homes using prison labor. Committee members raised concerns that allowing private companies to use prison labor could undercut private industry if costs (facility rent or labor) were below market levels.

To address those concerns, the chair proposed and the committee adopted an amendment requiring that private companies pay the prison the average going rate for the square footage used and that incarcerated workers be paid at least the average rate for the skill they perform, with no lower training wage exception. When asked whether the amendment removed a $15 floor, the chair said, “My intent is not to remove a minimum wage of $15, but to make sure that they have to pay at least $15 or the average rate for the skill that they're doing, which will most likely always be more than $15, whichever is greater.”

Members discussed fiscal and market implications. Representative Corbett said the program looked like it might shift costs across state funds and private markets; Supervisor Beye asked whether rent would go back to the prison (the chair confirmed it would) and whether the amendment established a floor rather than a ceiling on wages. The chair answered the amendment establishes a wage floor (no training-wage exception) and allows pay increases as skill increases.

Vice Chair Ward moved H.B. 2596 favorably for passage as amended; the motion was seconded by Representative Laura Williams and the committee voted to recommend the bill favorably as amended.

Why it matters: The amendment seeks to limit unfair competition and ensure incarcerated workers receive at least a stated minimum or prevailing-skill wage while allowing the prison and private contractors to provide training and employment opportunities. Opponents worried about state-subsidized competition with private-sector builders; supporters emphasized workforce training and lower recidivism as public benefits.

What’s next: The committee recommended the bill favorably as amended; the reviser will prepare final text and the bill will proceed in the regular legislative process.