Attachment 7 - AR 450-07 Offender Wage Deduction Agreement.pdf

ADMINISTRATIVE REGULATION

COLORADO DEPARTMENT OF CORRECTIONS

REGULATION NUMBER

450-07

PAGE NUMBER

CHAPTER: Industries

SUBJECT: Offender Wage Deduction Agreement

RELATED STANDARDS: ACA Standards: NONE EFFECTIVE DATE: May 1, 2023

SUPERSESSION: 03/01/22

Moses (André) Stancil

Executive Director

OPR: DCI REVIEW MONTH: MARCH

I. POLICY

It is the policy of the Colorado Department of Corrections (DOC) that the Division of Correctional Industries will work with representatives of the federal government to develop program certification for a Prison Industry Enhancement and

Certification Program (PIECP). This administrative regulation also defines the DOC’s right to collect offender wage deductions in federally-certified work programs, known as cost accounting centers (CAC).

II. PURPOSE

The purpose of this administrative regulation (AR) is to:

A. Establish the wage deduction agreement as a condition of work in a federally-certified CAC between the DOC and individual offenders.

B. Protect the offender and the DOC from misunderstandings relating to deductions from an offender’s gross earnings.

C. Ensure that the offender voluntarily agrees to and is aware of all authorized wage deductions.

D. Require that all transactions will be recorded and reported to the offender on a periodic statement.

E. Signify agreement between the DOC and the offender that all earnings and deductions will be disclosed to the parties involved in the agreement.

F. Clearly specify the DOC’s authority to deduct a reasonable portion of the income earned by an offender to pay for incarceration costs and other purposes as itemized within this administrative regulation.

G. Establish that costs of incarceration may be legally charged to an offender as specified by Colorado statute.

III. DEFINITIONS

A. Emergency: A situation involving an immediate family member that is serious, unexpected, and requires action.

Examples include (but are not limited to): financial difficulty paying bills; housing costs/repairs; automotive costs/repairs;

medical expenses; etc. In determining what might include an emergency, Case Managers/Parole Officers are encouraged to coordinate with their facility/Division leadership.

B. Federally Certified Work Program: A Correctional Industries cost accounting center (CAC) recognized by federal

CHAPTER SUBJECT AR # Page 2

Industries Offender Wage Deduction Agreement 450-07 05/01/23 authorities as satisfying the requirements of federal law and which thereby allows the interstate sale and distribution of offender-produced goods developed by that cost center.

C. Gross Wage: All money earned during a regular monthly pay period by an offender who has been employed at any time during the pay period under any federally-certified work program. Offenders will be paid for actual hours worked only.

D. Immediate Family: Grandparents, parents, step-parents, adoptive parents, legal guardian, brother, step or half-brother, sister, step or half-sister, spouse, son, daughter, step/foster/adopted children, grandchildren, aunt, and uncle.

E. Net Offender Pay: Fifty percent of all monies remaining after authorized deductions.

IV. PROCEDURES

This administrative regulation provides overall direction and guidance for administering offender wages and deductions from such wages in federally-certified work programs. The setting of specific wage rates is not covered by this AR.

A. Prior to employment and beginning work in any federally-certified work program, offenders must complete the Internal

Revenue Service verification process outlined in AR 850-03, IV.A.10, and offenders who accept assignments to such programs must sign an approved wage deduction agreement as a condition of program participation (AR Form 450-07A, Federally-Certified Work Program Offender Wage Deduction Agreement).

B. The Offender Wage Deduction Agreement authorizes the DOC to deduct contributions for the victim compensation program fund, dependent support payments, and costs of incarceration. No more than 80 percent of gross wages may be deducted from the offender’s pay. A portion of the offender’s net pay will be placed in a PIECP Savings Account payable to the offender upon release. Savings account balances will be used as an offset to any other statutorily required release payment or payments to such offenders.

1. Net Offender Pay:

a. Taxes: If an offender is working within a CAC operated by a private corporation, also known as an Employer

Model, applicable state and federal income taxes will be collected from gross wages paid to offenders and FICA

(Federal Insurance Contributions Act) taxes will be deducted in a manner consistent with other Federal laws.

b. Victim Compensation Program: An amount equal to 20 percent of gross wages will be deducted from the earnings of every offender working in a federally-certified work program, for deposit to the DOC’s identified victim compensation program fund.

c. Dependent Support Payment: Payments, not to exceed 20 percent of gross wages, will be deducted for dependent support payments to one or more members of an offender’s immediate family or to the guardian of an offender’s dependent child(ren), provided that payment has been ordered by a court of competent jurisdiction or as otherwise authorized in writing by the offender, and approved by the Correctional Industries Director.

d. Costs of Incarceration: Twenty percent of gross wages will be collected from each offender and deposited with Correctional Industries to partially offset the cost of incarceration, including the costs of operating the program.

e. Involuntary Savings Plan: Fifty percent of all earnings remaining after authorized deductions will be placed in an interest-bearing savings account to be given to the offender upon parole or discharge from DOC custody and the remaining fifty percent will be placed in the offender’s inmate bank account for their general use. This does not apply if the balance remaining after authorized deductions is $50.00 or less as the full amount will be placed in the offender’s inmate bank account. Upon parole or discharge from DOC custody, the entire balance will be

CHAPTER SUBJECT AR # Page 3 returned to the released offender. Also, involuntary savings held for an offender may be subject to additional deductions to cover damages assessed to the offender while incarcerated or employed in a program. Such damages must be paid in full, prior to disbursement of the amounts of an offender’s involuntary savings plan account.

1) If an offender has a PIECP Savings Account with a balance less than $50.00 and the offender is no longer in a PIECP program, the PIECP Savings Account will be closed and the funds placed in their DOC inmate account.

2) In the event taxes should exceed the maximum 80 percent of gross wages allowable for an offender participating within a PIECP employer model (employed by a private corporation), the difference will be deducted from the amount withheld for costs of incarceration in order to reduce the overall deduction amount and not exceed the maximum 80 percent deduction allowable.

3) The Director of Correctional Industries (or their designee) may authorize the withdrawal of PIECP Savings

Account funds for emergencies involving members of the offender’s immediate family as defined in this administrative regulation. Emergency releases cannot reduce the savings balance below $100.00, as the intent of this savings account is to aid the offender upon parole or discharge from DOC custody.

Emergency releases will not be authorized if DOC garnishments have been assessed to the offender’s account, unless the remaining amount would be sufficient to cover the garnishments plus the $100.00 savings. Funds in an offender’s PIECP Savings Account are not authorized to be transferred to an immediate family member who subsequently transfers money into the offenders DOC inmate account.

Denial or delay of requests for emergency release of funds may result in situations where this is observed or suspected.

a) Requests for release of funds must be submitted in writing by the offender to their Case Manager/Parole

Officer who will review the request to ensure that the request meets the requirements of section 3 above

(i.e., is considered an emergency and the funds will be transferred to an immediate family member). If it does not, the Case Manager/Parole Officer will inform the offender why it does not (i.e., lack of information, doesn’t meet the requirements of an emergency, individual is not considered an immediate family member, etc.). If the request meets the requirements of this administrative regulation, the Case

Manager/Parole Officer will complete AR Form 450-07B Request for Release of PIECP Savings

Account Funds, and forward it (along with the offender’s written request) to Inmate Banking.

b) Upon receipt of AR Form 450-07B, Inmate Banking will review the offender’s PIECP Savings Account to determine the amount currently in the account and annotate that amount on the AR Form 450-07B.

Once their portion of the form is completed, Inmate Banking will forward the form to the Correctional

Industries Director’s Office for review.

c) The Correctional Industries Director (or their designee) will review the form and other supporting documentation provided in the request and issue the decision in writing. As part of this process, if additional information is required, the necessary coordination will be made with the applicable offices.

d) If approved, payment will be processed by Inmate Banking and issued by the Cashier’s Office to the address provided by the offender for the immediate family member named in the request. Requests for payments to be sent to another person who will then provide the funds to the immediate family member will be considered on a case by case basis.

4) Administrative heads (or their designee) may request an exception to section 3 above in extenuating circumstances. Requests must be in writing with the appropriate justification and submitted to the

Correctional Industries Director. Requests for an exception will be considered on a case by case basis.

CHAPTER SUBJECT AR # Page 4

C. Inmate Banking will provide quarterly statements, including itemized gross wages earned, specific deductions, involuntary savings, and interest earned on involuntary savings deposits, to each offender currently employed in a PIECP work program. Annual statements will be provided by Inmate Banking to each offender with an involuntary savings account that is no longer employed by a PIECP work program.

D. Only programs established under the provisions of C.R.S. 17-24-119, Training and employment by organizations -account for proceeds and wages, C.R.S. 17-24-121, Venture agreements, C.R.S. 17-24-122, Agreements for the employment of inmates by private entities, and C.R.S. 17-24-125, Correctional industries at nonstate-owned facilities -definitions and authorized by the Bureau of Justice Assistance are covered by this administrative regulation.

E. Bookkeeping systems and procedures to record the data for reports, a system to monitor private business records to verify payments, and/or deposits, and other methods to assure fairness and completely verifiable accounting for an offender’s earnings will be worked into the program under the direction of the Division of Correctional Industries and Inmate

Banking.

V. RESPONSIBILITY

A. The Correctional Industries Director will review this AR annually and update as necessary.

VI. AUTHORITY

A. C.R.S. 17-22.5-202. Ticket to leave-discharge-clothes, money, transportation-reentry services.

B. C.R.S. 17-24-119. Training and employment by organizations - account for proceeds and wages.

C. C.R.S. 17-24-121. Venture agreements.

D. C.R.S. 17-24-122. Agreements for the employment of inmates by private entities.

E. C.R.S. 17-24-125. Correctional industries at nonstate-owned facilities - definitions.

F. Title 18 U.S.C. Chapter 85. Section 176. Transportation or importation.

VII. HISTORY

March 1, 2022

February 1, 2020

February 15, 2019

January 1, 2018

January 1, 2017

December 15, 2014

November 1, 2011

November 15, 2010

September 1, 2010

September 1, 2009

February 15, 2009

September 1, 2008

November 1, 2007

September 1, 2007

ATTACHMENTS: A. AR Form 450-07A, Federally-Certified Work Program Offender Wage Deduction Agreement

B. AR Form 450-07B, Request for Release of PIECP Savings Account Funds

C. AR Form 100-01A, Administrative Regulation Implementation/Adjustments

AR Form 450-07A (05/01/23)

Federally-Certified Work Program Offender Wage Deduction Agreement

FEDERALLY-CERTIFIED WORK PROGRAM I, ____________________________ DOC Number

, agree to the terms and the amounts outlined in DOC Administrative Regulation 450-07, Offender Wage

Deduction Agreement to be deducted from my earnings each month. The deductions are based on the levels and the percentages identified as part of the Offender Wage Deduction Agreement and that no more than 80% of gross wages can be deducted from my earnings. I will be provided a periodic statement of earnings and deductions, including any savings accumulated and interest, if any, earned by such savings.

This agreement will remain in effect until my resignation or removal from the federally-certified work program noted above.

Offender’s Initials: ________

(a) I have read and understand this Agreement and have received a copy of DOC administrative regulation 450-07.

(b) I certify that I am voluntarily participating in the program covered hereby.

(c) I have prepared and submitted or herewith submit an IRS W-9 form in accordance with DOC AR 850-03, Offender Assignment and Pay.

(d) I certify that I (do or do not) have court ordered dependent support requirements.

(e) I agree to allow wage deductions for court-ordered dependent support, or as specifically requested by me in writing, and approved by the Correctional Industries Director. I understand that these agreed upon dependent support payments deducted will not exceed 20 percent of my gross wages.

(f) I agree to allow wage deductions that assist in offsetting the costs of incarceration. I understand that these agreed upon cost of incarceration deductions will not exceed 20 percent of my gross wages.

(g) I certify that I (do or do not) have court ordered victim’s restitution requirements.

(h) I agree to allow victim compensation deductions. I understand that these agreed upon victim compensation deductions will not exceed 20 percent of my gross wages.

_____(i) I agree to allow FICA deductions, in a manner consistent with other federal laws, if employed within a PIECP

Employer Model (employed by a private corporation).

(j) I certify that I have not knowingly falsified any information in this application and accompanying attachments.

Offender Signature: Date: _______________________

Witness Signature: Date: ________________________

Distribution: Working File

Department File

Offender Pay

Offender

Attachment A

AR Form 450-07B (02/01/20)

Request for Release of PIECP Savings Account Funds

MEMORANDUM

Date: __________________

TO: Colorado Correctional Industries Director

THRU: Inmate Banking

FROM: Case Manager/Parole Officer: ____________________________

SUBJ: Request for Release of PIE Savings Account Funds

Case Manager/Parole Officer:

I, Case Manager/Parole Officer __________________, working for the Colorado Department of Corrections have reviewed the attached letter of request for release of PIECP Savings Account funds from offender

___________________, DOC# ________, and authorize that this would be considered an emergency for an immediate family member. The Colorado Correctional Industries Director will make the final decision to grant or deny the attached request.

Emergency releases cannot reduce the savings balance below $100.00, as the intent of this savings account is to aid the offender upon parole or discharge from DOC custody. Emergency releases will not be authorized if DOC garnishments have been assessed to the offender’s account, unless the remaining amount would be sufficient to cover the garnishments plus the mandatory

$100.00 savings. (AR 450-07 IV.B.1.f.3.)

Signed: ____________________________________ Date: ______________________

Case Manager/Parole Officer

Contact Phone: __________________ Email: _______________________________________

Work # Work email

Inmate Banking:

I have reviewed the PIECP Saving Account for offender listed above and as of _______________, the amount in their account is _____________________.

Signed: ____________________________________ Date: ______________________

Inmate Banking POC

Contact Phone: __________________ Email: _______________________________________

Work # Work email

Attachment B

ADMINISTRATIVE REGULATION

IMPLEMENTATION/ADJUSTMENTS

AR Form 100-01A (04/15/08)

CHAPTER SUBJECT AR # EFFECTIVE

(FACILITY/WORK UNIT NAME) _________________________________________________________________________

WILL ACCEPT AND IMPLEMENT THE PROVISIONS OF THE ABOVE ADMINISTRATIVE REGULATION:

[ ] AS WRITTEN [ ] NOT APPLICABLE [ ] WITH THE FOLLOWING PROCEDURES TO ACCOMPLISH THE INTENT

OF THE AR

(SIGNED) (DATE) _______________________

Administrative Head

Attachment C