The Florida Senate BILL ANALYSIS AND FISCAL IMPACT STATEMENT (This document is based on the provisions contained in the legislation as of the latest date listed below.) Prepared By: The Professional Staff of the Committee on Criminal Justice BILL: SB 930 INTRODUCER: Senator Evers SUBJECT: Trust Funds/State-Operated Institutions Inmate Welfare Trust Fund/DOC DATE: January 8, 2016 ANALYST 1. Sumner 2. 3. I. REVISED: STAFF DIRECTOR Cannon REFERENCE CJ ACJ AP ACTION Pre-meeting Summary: SB 930 creates the State-Operated Institutions Inmate Welfare Trust Fund (Trust Fund) within the Department of Corrections (department). The purpose of the new Trust Fund is for the benefit and welfare of inmates incarcerated in state-operated correctional facilities. In accordance with s. 19(f)(2), Art. III of the State Constitution, the Trust Fund will be terminated on July 1, 2020, unless terminated sooner or renewed. II. Present Situation: Inmate Welfare Trust Funds for Public Correctional Facilities From 1979 until 2003, s. 945.215, F.S., provided for a trust fund that allowed the department to use revenue from the purchase of inmate canteen items and from inmate telephone calls to fund chapels, education, and wellness programs at publically operated correctional facilities. The source of most the revenue was from family and friends of the inmate. Chapter 2003-179, Laws of Florida, eliminated the former trust fund for public correctional facilities and required the revenue from inmate canteens and telephone usage to go directly into the General Revenue Fund. According to a January 15, 2015, Auditor General audit of the department’s canteen operations (which are outsourced to Keefe Commissary Network, LLC), from July 2012 through February 2014 sales in department institution canteens totaled approximately $133.31 million and catalog sales totaled $868,474. In addition, the department received MP3 music program commissions from Keefe totaling $940,412 relating to MP3 music program sales of approximately $5.99 million. The department’s contract with Keefe expired March 31, 2015. BILL: SB 930 Page 2 Canteens operate on a cashless system. Inmates use photo identification cards like bank debit cards. Inmates may make purchases on a weekly basis not to exceed $100.1 MP3 sales and catalog items do not count toward the purchase limit. The chart below shows the department’s revenue collections from funding sources for the Inmate Welfare Trust Fund before s. 945.215, F.S., was amended to direct those revenues to the General Revenue Fund: REVENUE COLLECTION SUMMARY PREVIOUS INMATE WELFARE TRUST FUND SOURCES FY 2010-2011 – FY 2014-2015 Description Authorizing Statute General Revenue Unallocated (GRU) Collections: Subsistence s. 944.485 FS Interest Income – ITF s. 944.516(1)(f) FS ITF Balances < $1.00 s. 944.516(5) FS Canteen Commissions2 s. 945.215(1)(a) FS Vending Commissions s. 945.215(1)(e) FS Telephone Commissions s. 945.215(1)(b) FS Medical Copay s. 945.6037 FS Inmate Bank - GR Fiscal Year 2010-2011 Fiscal Year 2011-2012 Fiscal Year 2012-2013 Fiscal Year 2013-2014 Fiscal Year 2014-2015 6,748,740 230,677 1,194 31,162,387 343,096 5,205,804 737,410 $44,429,308 7,712,150 204,227 1,219 30,970,697 357,371 5,156,269 713,823 $45,115,756 8,035,040 204,368 1,197 30,907,621 369,591 5,334,549 661,604 $45,513,970 8,092,206 103,669 1,211 31,027,325 212,345 6,142,399 673,325 $46,252,480 5,768,529 124,382 1,217 34,237,290 475,637 4,975,584 645,159 $46,227,797 Inmate Welfare Trust Fund for Privately Operated Institutions An Inmate Welfare Trust Fund for private correctional facilities created in 1998 continues to operate.3 This trust fund is for the benefit and welfare of inmates incarcerated in private correctional facilities under contract with the Department of Management Services (DMS). Net proceeds from inmate canteens, vending machines used primarily by inmates, telephone commissions, and other similar sources of proceeds are deposited in the fund. The DMS compiles an annual report documenting the receipts and expenditures at each private facility. For Fiscal Year 2013-2014, the DMS reported total revenues of $3,252,201.41. The total expenditures for vocational programs, canine detection training programs, and community service programs was $1,014.038.88. III. Effect of Proposed Changes: The bill creates the State-Operated Institutions Inmate Welfare Trust Fund within the Department of Corrections. The language of the bill closely mirrors the language that was in s. 945.215, F.S., when the former trust fund was originally created. The purpose of the new Trust Fund is for the benefit and welfare of inmates incarcerated in state-operated correctional facilities. The new Trust Fund will terminate on July 1, 2020, unless terminated sooner. IV. Constitutional Issues: A. Municipality/County Mandates Restrictions: None. 1 Rule 33-203.101, F.A.C. Canteen commissions include MP3 music program sales. 3 Section 944.72, F.S. 2 BILL: SB 930 B. Page 3 Public Records/Open Meetings Issues: None. C. Trust Funds Restrictions: None. V. Fiscal Impact Statement: A. Tax/Fee Issues: None. B. Private Sector Impact: None. C. Government Sector Impact: According to the Florida Department of Corrections, the bill will benefit the welfare of inmates incarcerated in State-Operated Correctional Institutions. The revenues deposited will be taken from operating inmate canteens (vending machines used primarily by inmates and visitors, hobby shops, and other such facilities). VI. Technical Deficiencies: None. VII. Related Issues: None. VIII. Statutes Affected: This bill creates section 944.73 of the Florida Statutes. IX. Additional Information: A. Committee Substitute – Statement of Changes: (Summarizing differences between the Committee Substitute and the prior version of the bill.) None. B. Amendments: None. This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.