New York Assemblyman Proposes 'Madoff Bill' to Punish Wealthy Inmates

Wealthy New Yorkers convicted of crimes may now be forced to foot the bill for their own jail time if one state legislator's proposed "Madoff" bill becomes law.

State Assemblyman Jim Tedisco authored a bill requiring rich New York inmates to pay state and federal governments the cost of housing them in prison.

"We have a lot of people in our society who have extensive personal wealth and who have broken their trust with the justice system," Tedisco told FOXNews.com Tuesday.

Tedisco, who said he's been considering the bill for a long time, called convicted Ponzi schemer Bernard Madoff's 150-sentence in federal prison the "tipping point."

The assemblyman said the bill was also inspired by reports of a wealthy inmate convicted of fraud hosting an extravagant bar mitzvah for his son while serving time last December in a New York City jail. City taxpayers paid overtime for the corrections staff at downtown Manhattan's "Tombs" prison. The officers oversaw inmate Tuvia Stern's 60-person celebration featuring a Kosher caterer on china plates and a live band.

"To use a city jail as a frat house for parties hosted by wealthy inmates and their connected friends is completely inappropriate," Tedisco said in a press release issued Monday. "This legislation holds criminals accountable while providing relief to our beleaguered taxpayers."

The cost per day to house a federal inmate is $70.75, according to The Federal Bureau of Prisons.

New York state comptroller Thomas DiNapoli estimated in 2007 that it costs counties close to $1 billion a year to cover inmates' daily costs.

Tedisco's bill will charge white-collar criminals on a sliding scale based on the amount of assets they have. Inmates with $200,000 or more in assets must foot the entire bill, while those with a net worth of $160,000 to $200,000 pay 80 percent of the tab. Those whose net worth is below $40,000 would not be required to pay anything.

The asset bracket does not include the value of an inmate's home or any equity found in it, and is calculated after deductions for an inmate's mortgage payments, tax bills or payments for child or spousal support.

"This is a great way to further deter criminals from committing crimes and prevent the corrupt use of taxpayer funds in our prisons," said Tedesco, who has served in New York's state assembly since 1983.

Despite the bill's title, the measure would only affect inmates housed in New York state prisons and would have no impact on Madoff, who is incarcerated at the Butner Federal Correctional Complex, in Butner, N.C.

But Greg Amorosi, a spokesman for Tedisco, said the assemblyman is hoping his measure will garner national attention.

"We would like to see our federal legislators pick it up," he said, adding that Tedisco will present his case to New York Sens. Charles Schumer and Kirsten Gillibrand.