SACRAMENTO — Assemblymember Matt Haney of San Francisco has introduced a bill to place a 50% tax on the profits of private companies that manage immigration detention centers in California.
Assembly Bill 1633 specifically targets two companies, CoreCivic and The GEO Group, which operate seven private immigration detention sites in the state. According to Democratic lawmakers, these two contractors earned a total of $500 million from those operations.
Haney said the proposal is designed to hold private contractors accountable. Under the bill, money from the 50% tax would go toward funding immigration services.
The tax proposal follows a recent inspection of a federal facility in Kern County. Earlier this month, U.S. Senators Alex Padilla and Adam Schiff toured a detention center there. After the tour, Schiff said the people held there were living in poor conditions.
The bill is part of a broader effort in the state legislature regarding federal immigration enforcement. Assemblymember Alex Lee has proposed a separate bill that would take away state tax breaks from any company that signs contracts with U.S. Immigration and Customs Enforcement (ICE).
Supporters said interest in these bills grew following a fatal shooting by federal agents in Minnesota earlier this year. That event led to a national push for more oversight of immigration agencies and the private companies they hire.
Private companies and some lawmakers oppose the new bills. CoreCivic defended its management practices, stating that more than 200 government audits in the past year confirmed its facilities meet health and staffing standards.
State Senator Suzette Valladares also criticized the bills, claiming the language used in the debate is one-sided. She expressed concern that the wording of the bills could create safety risks for law enforcement and others.
If passed, AB 1633 would significantly reduce the amount of profit private detention companies can keep while operating in California.
