Pen. Code, § 2801

The purposes of the authority are:

(a) To develop and operate industrial, agricultural, and service enterprises employing prisoners in institutions under the jurisdiction of the Department of Corrections and Rehabilitation, which enterprises may be located either within those institutions or elsewhere, all as may be determined by the authority.

(b) To create and maintain working conditions within the enterprises as much like those which prevail in private industry as possible, to ensure prisoners employed therein the opportunity to work productively, to earn funds, and to acquire or improve effective work habits and occupational skills.

(c) To operate a work program for prisoners that will ultimately be self-supporting by generating sufficient funds from the sale of products and services to pay all the expenses of the program, and one that will provide goods and services that are or will be used by the Department of Corrections and Rehabilitation, thereby reducing the cost of its operation.

(1) This subdivision does not require immediate cash availability for funding retiree health care and pension liabilities above amounts established in the Budget Act, or as determined by the Board of Administration of the Public Employees’ Retirement System, or the Director of Finance for the fiscal year.

(2) The California Correctional Training and Rehabilitation Authority shall not establish cash reserves to support funding retiree health care and pension liabilities above the amounts specified in paragraph (1).