California Code, Welfare and Institutions Code - WIC § 1124

Each institution under this chapter may manufacture, repair, and assemble products or may raise produce, for use in the institution or in any other State institution or for sale to or pursuant to contract with the public.  The primary purpose of all instruction, discipline and industries shall be to benefit the inmates of the several schools and to qualify them for honorable employment and good citizenship.  Moneys received from sales or contracts made or entered into under this section shall be used first to defray the expenses of the industry, including wages paid to the wards working in the industry.  The wages shall be set by the director.  Moneys in excess of those used to support the industry shall be deposited in the “Benefit Fund” as defined in Section 1752.5.