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Bill 983

                    Current Status

Bill Number:                      983
Type of Legislation:              General Bill GB
Introducing Body:                 Senate
Introduced Date:                  20020206
Primary Sponsor:                  Fair
All Sponsors:                     Fair, Patterson, Waldrep, Jackson, 
                                  Thomas, Anderson, Bauer, Ford, Giese, Hawkins, 
                                  Branton, Ryberg, Alexander, Glover, Matthews, 
                                  Pinckney
Drafted Document Number:          l:\council\bills\bbm\10668htc02.doc
Residing Body:                    Senate
Current Committee:                Corrections and Penology Committee 03 SCP
Subject:                          Telephone rates, Budget and Control Board 
                                  to ensure new rates for inmates at Dept. of 
                                  Corrections and Juvenile Justice


                        History

Body    Date      Action Description                     Com     Leg Involved
______  ________  ______________________________________ _______ ____________
Senate  20020529  Recommitted to Committee               03 SCP
Senate  20020228  Committee report: Favorable            03 SCP
Senate  20020206  Introduced, read first time,           03 SCP
                  referred to Committee


              Versions of This Bill
Revised on February 28, 2002 - Word format

COMMITTEE REPORT

February 28, 2002

    S. 983

Introduced by Senators Fair, Patterson, Waldrep, Jackson, Thomas, Anderson, Bauer, Ford, Giese, Hawkins, Branton, Ryberg, Alexander, Glover, Matthews and Pinckney

S. Printed 2/28/02--S.

Read the first time February 6, 2002.

    To whom was referred a Bill (S. 983) to provide that, after a phase-out period extending over three fiscal years, the State shall forego any commission or other source of revenue derived from the placement of telephones, etc., respectfully

    That they have duly and carefully considered the same and recommend that the same do pass:

MICHAEL L. FAIR for Committee.

REVENUE IMPACT 1/

This bill is expected to reduce departmental revenues within the general fund by $2,000,000 annually in fiscal years 2002-03, 2003-04 and 2004-05 respectively.

Explanation

    This bill requires the State Budget and Control Board (B&CB) to proportionately reduce the scale of pay telephone rates over a three-year period beginning July 1, 2002 for those pay telephones used by inmates in penal institutions of the Departments of Corrections (SCDC) and Juvenile Justice (DJJ). The State has a contract with Sprint to administer the pay phones. The State currently assesses a 45% commission to the charges by Sprint. Sprint forwards commission revenues to the Office of Information Resources (OIR) within the B&CB for subsequent deposit in the general fund.

    There are 1,700 pay phones statewide and inmates at SCDC and DJJ use approximately 1,100. Based on a review by the OIR, the BEA estimates elimination of the 45% surcharge on collect calls would reduce departmental revenues within the general fund by a total of $6,000,000 over the three-year period ending in FY 2004-05 to be prorated at $2,000,000 each year. This bill, therefore, would reduce departmental revenues within the general fund by $2,000,000 in fiscal years 2002-03, 2003-04, and 2004-05, respectively.

    Note: This bill would have no impact in FY 2002-03 without a corresponding amendment to ongoing Part 1B proviso72.63 of H3687 (FY 2001-02 General Appropriation Bill) because the temporary proviso overrides permanent law.

    Approved By:

    William C. Gillespie

    Board of Economic Advisors

1/ This statement meets the requirement of Section 2-7-71 for a state revenue impact, Section 2-7-76 for a local revenue impact, and Section 6-1-85(B) for an estimate of the shift in local property tax incidence.

EXPLANATION OF IMPACT:

    Notwithstanding the loss of revenue to the General Fund of the State, there will be no additional cost or savings on the General Fund of the State or on federal and/or other funds.

SPECIAL NOTES:

    The Board of Economic Advisors is the appropriate agency to address any revenue impact of this legislation.

    Approved By:

    Don Addy

    Office of State Budget

TO PROVIDE THAT, AFTER A PHASE-OUT PERIOD EXTENDING OVER THREE FISCAL YEARS, THE STATE SHALL FOREGO ANY COMMISSION OR OTHER SOURCE OF REVENUE DERIVED FROM THE PLACEMENT OF TELEPHONES IN INSTITUTIONS OF THE DEPARTMENT OF CORRECTIONS AND THE DEPARTMENT OF JUVENILE JUSTICE FOR THE USE OF INMATES AND TO PROVIDE THAT THE STATE BUDGET AND CONTROL BOARD SHALL ENSURE THAT THE TELEPHONE RATES CHARGED FOR THE USE OF THESE PHONES REASONABLY REFLECT THIS FOREGONE STATE REVENUE.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Notwithstanding any other provision of law and phased-in ratably over three fiscal years beginning July 1, 2002, the State shall forego any commission or revenue source by any means described for the placement of telephones in institutions of the Department of Corrections and the Department of Juvenile Justice for the use of inmates. The State Budget and Control Board shall ensure that the telephone rates charged by vendors for the use of those phones reasonably reflect this foregone state revenue during and after the phase-out period.

SECTION    2.    This act takes effect upon approval by the Governor.

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