AB1633 is yet another immigration-related bill introduced by California Democrats.
SACRAMENTO, Calif. — California Democratic lawmakers on Wednesday introduced new legislation aimed at increasing state-level safeguards around federal immigration enforcement by targeting private corporations that contract with U.S. Immigration and Customs Enforcement.
The proposals are part of a growing push by state Democrats to counter the Trump administration’s immigration policies, including the use of private detention facilities in California.
AB 1633, authored by Assemblymember Matt Haney, a Democrat from San Francisco, would impose a 50% tax on corporate profits derived from immigration detention operations. Revenue generated by the tax would be redirected to immigration-related services, including legal representation for detainees.
“If you are going to impose this kind of terror on our state and on our people, we are going to tax you for the pain and harm you are causing,” Haney said during a Wednesday press conference announcing the bill.
Haney said the measure is intended to curb the expansion of private detention facilities while providing resources to communities impacted by immigration enforcement.
“We have a situation where private companies are opening detention facilities in California making hundreds of millions in profit,” Haney said. “If we can’t get rid of them, the least we can do is tax the heck out of them.”
The bill targets major for-profit detention operators, including CoreCivic, based in Tennessee, which operates two immigration detention centers in California; GEO Group, based in Florida and has both national and international presence, which operates four facilities in the state; and Management and Training Corporation, another private company that operates an immigration detention center in the state.
Assemblymember Mia Bonta, a Democrat from Oakland, said the issue reflects what she described as corporate profiteering tied to federal immigration enforcement.
“Who operates these centers? Corporate greed,” Bonta said. “Now that corporate greed goes all the way to the Trump White House.”
According to data compiled by the American Civil Liberties Union of Northern California, private detention contractors generate hundreds of millions of dollars annually through contracts with ICE.
A breakdown by facility can be found here.
Haney acknowledged California cannot prevent the federal government from entering into detention contracts but argued the state has the authority to tax companies operating within its borders.
“The federal government is allowed to enter into these contracts,” he said. “We are not allowed to tell them they can’t do that, even if that’s within our state. But we can tax them.”
Haney added that companies unwilling to comply could — and should — leave California.
A second proposal, which will soon formally be introduced by Assemblymember Alex Lee, a Democrat from Milpitas, would eliminate state tax breaks for corporations that contract with ICE. Lee said the bill would force companies to choose between receiving California tax benefits or continuing detention-related business with the federal government.
“Corporations that do business in California can choose,” Lee said. “They can either get their tax breaks from California, or they can get their profits from ICE.”
Lee said corporate tax breaks cost the state an estimated $7 billion annually and argued the measure would encourage companies to pursue alternative business models.
“There are other things they can do more legally and ethically,” Lee said.
These legislators, as well as immigration rights advocates, detailed at the press conference that California facilities currently house nearly 7,000 people, which is double from a year ago. They also noted four have died while in detention.
In a joint response, representatives for CoreCivic, GEO Group and Management and Training Corporation said private contractors have partnered with both Democratic and Republican administrations for more than three decades.
“Contractors do not make arrests, do not decide the length of detention, and play no role in determining the legal status of individuals in their care,” the representative said in a statement. “Contractors are required to follow strict federal standards, which were updated under President Obama, and operate under multiple levels of oversight by the U.S. Congress, government agencies, and independent organizations.
Without the critical services provided by contractors, these men and women would likely be housed in overcrowded local jails, which operate with limited oversight or standards, and alongside potentially dangerous individuals.”
For specifics on each of the seven California facilities — including amount and length of contracts — we were referred to ICE. Both ICE and the Department of Homeland Security did not respond to requests for comment.
We also heard from CoreCivic directly. A spokesperson wrote back in part, “It’s important to understand that CoreCivic has a long-standing, zero-tolerance policy not to advocate for or against any legislation that serves as the basis for – or determines the duration of – an individual’s detention. CoreCivic does not enforce immigration laws, arrest anyone who may be in violation of immigration laws, or have any say whatsoever in an individual’s deportation or release. CoreCivic also does not know the circumstances of individuals when they are placed in our facilities. ”
The proposals come as California Democrats continue pressing congressional Democrats to oppose additional federal funding for the Department of Homeland Security, even if it results in a government shutdown.
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