(1) The rate of compensation for the labor of inmates of the penitentiaries shall be fixed and determined by the commissioner of correction and by the county legislative body entering into the contract and shall be in accordance with rules and regulations to be prescribed by the commissioner; provided, that the rate of compensation shall not be less than one dollar ($1.00) per day of ten (10) hours for labor of each inmate employed on the work.
(2) The commissioner is authorized to pay all necessary transportation of inmates, guards and equipment out of the correction budget.