Ariz. Rev. Stat. » Title 41
Arizona Revised Statutes

Ariz. Rev. Stat. § 41-1624.01 (2026)

Contracts; services to state agencies and others; lease of real property

✓ current as of May 2026
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A. The director shall compensate prisoners for their services pursuant to section 31-254.

B. The director or his designee may contract with any state agency, political subdivision or state department or any private person, firm, corporation or association to provide services or labor rendered by prisoners.

C. All monies derived from contract services provided pursuant to subsection B of this section shall be deposited in the fund established pursuant to section 41-1624.

D. Subject to legislative appropriation, the director or his designee may contract with any private person, firm, corporation or association to lease real property for the operation of Arizona correctional industries.

Notes of Decisions
Cited in 6 cases, 1985–2009 · leading case: James Piatt v. Ellis MacDougall, 773 F.2d 1032 (9th Cir. 1985).
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James Piatt v. Ellis MacDougall, 773 F.2d 1032 (9th Cir. 1985). · cites it 2× “See Ariz. Rev.Stat. § 41-1624.01(A). Because Arizona has established, by statute, a right of inmates to compensation for work performed for private parties, it cannot deny that right to Piatt after he has earned the wages, without affording him due process of the law.”
City of South Tucson v. Indus. Comm'n, 753 P.2d 1199 (Ariz. Ct. App. 1988). · cites it 9× “In 1978, the legislature amended paragraph A to prescribe compensation for prisoners privately employed under ARCOR contract and also added paragraph A to A.R.S. § 41-1624.01. See Laws 1978, Ch. 164, §§ 11, 23.”
BILKE v. State, 209 P.3d 1056 (Ariz. Ct. App. 2009). · cites it 6× “The court thinks that the contract therefore falls within the scope of subsection B of A.R.S. § 41-1624.01 as a contract “to provide services or labor rendered by prisoners[.”
Gilbreath v. Cutter Biological, Inc., 931 F.2d 1320 (9th Cir. 1991). · cites it 2× “Appellants’ state law claims arise out of Ariz.Rev.Stat. Ann. § 41-1624.01, which requires the Director to compensate prisoners for their services pursuant to Ariz.”
Young v. Cutter Biological, 694 F. Supp. 651 (D. Ariz. 1988). · cites it 2× “If the director enters into a contract pursuant to § 41-1624.01 with a private person, firm, corporation or association the compensation shall be as prescribed by the person, firm, corporation or association, but shall not be below minimum wage.”
Bilke v. State, 938 P.2d 1134 (Ariz. Ct. App. 1997). · cites it 3× “section 31-254(A), the minimum wage requirement applies only when there is a contract between the director of the Department “pursuant to § 41-1624.01 with a private person, firm, corporation or association.”
— Ariz. Rev. Stat. § 41-1624.01(A) — 4 cases
James Piatt v. Ellis MacDougall, 773 F.2d 1032 (9th Cir. 1985). “See Ariz. Rev.Stat. § 41-1624.01(A). Because Arizona has established, by statute, a right of inmates to compensation for work performed for private parties, it cannot deny that right to Piatt after he has earned the wages, without affording him due process of the law.”
Gilbreath v. Cutter Biological, Inc., 931 F.2d 1320 (9th Cir. 1991). “Appellants’ state law claims arise out of Ariz.Rev.Stat. Ann. § 41-1624.01, which requires the Director to compensate prisoners for their services pursuant to Ariz.”
BILKE v. State, 209 P.3d 1056 (Ariz. Ct. App. 2009). “The court thinks that the contract therefore falls within the scope of subsection B of A.R.S. § 41-1624.01 as a contract “to provide services or labor rendered by prisoners[.”
City of South Tucson v. Indus. Comm'n, 753 P.2d 1199 (Ariz. Ct. App. 1988). “In 1978, the legislature amended paragraph A to prescribe compensation for prisoners privately employed under ARCOR contract and also added paragraph A to A.R.S. § 41-1624.01. See Laws 1978, Ch. 164, §§ 11, 23.”
— Ariz. Rev. Stat. § 41-1624.01(B) — 2 cases
City of South Tucson v. Indus. Comm'n, 753 P.2d 1199 (Ariz. Ct. App. 1988). “In 1978, the legislature amended paragraph A to prescribe compensation for prisoners privately employed under ARCOR contract and also added paragraph A to A.R.S. § 41-1624.01. See Laws 1978, Ch. 164, §§ 11, 23.”
Bilke v. State, 938 P.2d 1134 (Ariz. Ct. App. 1997). “section 31-254(A), the minimum wage requirement applies only when there is a contract between the director of the Department “pursuant to § 41-1624.01 with a private person, firm, corporation or association.”
— Ariz. Rev. Stat. § 41-1624.01(C) — 1 case
City of South Tucson v. Indus. Comm'n, 753 P.2d 1199 (Ariz. Ct. App. 1988). “In 1978, the legislature amended paragraph A to prescribe compensation for prisoners privately employed under ARCOR contract and also added paragraph A to A.R.S. § 41-1624.01. See Laws 1978, Ch. 164, §§ 11, 23.”
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