Retroactively adjusts the compensation of formerly incarcerated individuals who were unjustly convicted; exempts such adjusted income from state income taxes.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A4238
SPONSOR: Cunningham TITLE OF BILL:
An act to amend the correction law and the tax law, in relation to
adjusting the earnings of formerly incarcerated individuals who were
unjustly convicted
PURPOSE OF BILL:.
To ensure that those who are unjustly convicted receive proper recom-
pense for compulsory work performed for substandard wages white incar-
cerated.
SUMMARY OF SPECIFIC PROVISIONS:
Amends the Correction & Tax Law to ensure that those who are unjustly
convicted receive proper recompense for compulsory work performed for
substandard wages while incarcerated and are not otherwise punished from
a tax perspective on these earnings. Effective date: 30 Days.
JUSTIFICATION:
Those who are victims of an unjust conviction are often doubly punished
by having to wait interminably long times to receive the return of
fines, restitution and reparation payments that they are owed. Compound-
ing this factor, many such exonerated individuals were forced into the
equivalent of slave labor while incarcerated, performing skilled jobs
white being paid pennies. This bill will rightfully, allow the vindicat-
ed to received proper remuneration and not be penalized for it from a
new York Tax Perspective.
LEGISLATIVE HISTORY:
23/24: A5344 - referred to correction
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None beyond what justice requires.
EFFECTIVE DATE:
This act shall take effect in 30 days.
STATE OF NEW YORK
________________________________________________________________________
4238
2025-2026 Regular Sessions
IN ASSEMBLY
January 31, 2025
___________
Introduced by M. of A. CUNNINGHAM, DILAN, GIBBS, HYNDMAN, WALKER, COOK,
LEVENBERG, WEPRIN -- read once and referred to the Committee on
Correction
AN ACT to amend the correction law and the tax law, in relation to
adjusting the earnings of formerly incarcerated individuals who were
unjustly convicted
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The correction law is amended by adding a new section 188
2 to read as follows:
3 § 188. Adjustment of earnings of incarcerated individuals; unjust
4 conviction. 1. (a) Any incarcerated individual who is employed pursuant
5 to the provisions of this article shall be entitled to a retroactive
6 adjustment in their rate of compensation where such incarcerated indi-
7 vidual is subsequently (i) pardoned upon the grounds of innocence of the
8 crime or crimes for which such incarcerated individual was sentenced and
9 which are the grounds for the fine, restitution or reparation; or (ii)
10 such incarcerated individual's judgment of conviction was reversed or
11 vacated, and the accusatory instrument dismissed or, if a new trial was
12 ordered, either such incarcerated individual was found not guilty at the
13 new trial or such defendant was not retried and the accusatory instru-
14 ment dismissed; provided that the judgment of conviction was reversed or
15 vacated, and the accusatory instrument was dismissed, on any of the
16 following grounds: (1) paragraph (a), (b), (c), (e) or (g) of subdivi-
17 sion one of section 440.10 of the criminal procedure law; or (2) subdi-
18 vision one (where based upon grounds set forth in clause one of this
19 subparagraph), two, three (where the count dismissed was the sole basis
20 for the imprisonment complained of) or five of section 470.20 of the
21 criminal procedure law; or (3) comparable provisions of the former code
22 of criminal procedure or subsequent law; or (4) the statute, or applica-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04092-01-5
A. 4238 2
1 tion thereof, on which the accusatory instrument was based violated the
2 constitution of the United States or the state of New York.
3 (b) Such compensation adjustment shall be the greater of:
4 (i) the current minimum wage of the state;
5 (ii) the current wage or industry standard wage of the trade or indus-
6 try that such incarcerated individual was actively employed in or
7 trained/certified to work in; or
8 (iii) the wage equivalent of the incarcerated individual's salary at
9 the time of conviction.
10 2. Within ninety days following the notice of adjudication for such
11 pardon, reversal or vacation pursuant to subparagraphs (i) and (ii) of
12 paragraph (a) of subdivision one of this section, the department shall
13 notify such formerly incarcerated individual of their right to receive a
14 compensation adjustment pursuant to the provisions of this section.
15 3. Within ninety days of providing notice pursuant to subdivision two
16 of this section, the department shall remit to such formerly incarcerat-
17 ed individual any moneys owed as adjusted compensation as well as an
18 accounting, including the method of accounting, for all such moneys.
19 4. Notwithstanding any provision of law to the contrary, any moneys
20 remitted to a formerly incarcerated individual pursuant to the
21 provisions of this section shall not diminish or impair any compensation
22 or award which may be available to such formerly incarcerated individual
23 pursuant to the provisions of section eight-b of the court of claims
24 act.
25 § 2. Subsection (i) of section 601 of the tax law is relettered
26 subsection (j) and a new subsection (i) is added to read as follows:
27 (i) Adjusted compensation of formerly incarcerated individuals.
28 Notwithstanding the provisions of subsections (a), (b), (c) and (d) of
29 this section and any other provision of this article, for taxable years
30 beginning after the effective date of this subsection, the income of an
31 individual received pursuant to the provisions of section one hundred
32 eighty-eight of the correction law shall be exempt from tax under this
33 article regardless of whether such income is subject to federal income
34 taxation.
35 § 3. This act shall take effect on the thirtieth day after it shall
36 have become a law.
