Committee Report

April 30, 2025

 

H. 3929

 

Introduced by Reps. King and J. L. Johnson

 

S. Printed 4/30/25--H.

Read the first time February 6, 2025

 

________

 

The committee on House Judiciary

To whom was referred a Bill (H. 3929) to amend the South Carolina Code of Laws by adding Section 24-3-990 so as to provide the Department of Corrections may maintain canteens at all prisons or institutions, etc., respectfully

Report:

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

 

W. NEWTON for Committee.

 

 

statement of estimated fiscal impact

Explanation of Fiscal Impact

State Expenditure

This bill provides that Corrections may maintain canteens at all prisons or institutions under its jurisdiction.  These canteens will offer to incarcerated persons the sale of such items as toiletries, snacks, notions, and other sundries.  Corrections must provide staffing for each canteen and must limit prices to no more than a 20 percent markup over what is paid to the vendor of the commodities to be sold.  Currently, the revenue that is generated by the canteen division is kept by Corrections in a separate earmarked fund.  The bill also requires each prison or institution with a canteen to prepare an annual statement of operations.  In addition, the bill requires the LAC to conduct a biennial audit of canteen operations.

 

Corrections and the LAC report this bill will have no expenditure impact because any increase in workload will be managed with existing staff and appropriations.

 

State Revenue

Corrections reports that it currently operates 21 canteens across facilities statewide.  The markup on the commodities sold at the canteens is 45 percent.  The revenue from the canteens must cover all operating costs, as the canteen program is completely a revenue-funded enterprise.  This bill caps the markup at a maximum of 20 percent, which would result in an estimated revenue loss of $921,000 annually for Corrections.  Per Proviso 65.1 of the FY 2024-25 appropriations act, the canteen program must be treated as an enterprise fund within the agency and cannot be subsidized by state-appropriated funds.

 

 

Frank A. Rainwater, Executive Director

Revenue and Fiscal Affairs Office

 

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A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION 24-3-990 SO AS TO PROVIDE THE DEPARTMENT OF CORRECTIONS MAY MAINTAIN CANTEENS AT ALL PRISONS OR INSTITUTIONS UNDER ITS JURISDICTION THAT MUST BE SUBJECT TO AUDITS BIENNIALLY.

 

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

 

SECTION 1.  Article 9, Chapter 3, Title 24 of the S.C. Code is amended by adding:

 

    Section 24-3-990.  (A) The department may maintain a canteen at all active prisons or institutions under its jurisdiction for the sale to incarcerated persons of toilet articles, candy, notions, and other sundries, and shall provide the necessary facilities, equipment, personnel, and merchandise for the canteen. The director shall specify what commodities shall be sold in the canteen. The sale prices of the articles offered for sale shall not exceed a twenty percent mark-up above the amount paid to the vendors.

    (B) The department shall undertake to insure against damage or loss of canteen and handicraft materials, supplies, and equipment owned by the department.

    (C) The canteen operations at any prison or institution referred to in this section shall be audited biennially by the Legislative Audit Council, and at the end of each intervening fiscal year, each prison or institution shall prepare a statement of operations. At least one copy of any audit report or statement of operations shall be posted at the canteen and at least one copy shall be available to incarcerated persons at the library of each prison or institution.

 

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

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