GENERAL ASSEMBLY OF NORTH CAROLINA

EXTRA SESSION 1994

S	1 

SENATE BILL 114

Short Title:  Prison Profits to Victims Fund.	(Public)
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Sponsors: Senators Lee; Plexico, Hoyle, Speed, Forrester, Martin of Pitt, Warren, Conder, Blackmon, Kincaid, Sands, and Parnell.
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Referred to:  Courts.
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February 15, 1994

A BILL TO BE ENTITLED
AN ACT TO PROVIDE THAT A PORTION OF THE NET PROFITS FROM PRISON ENTERPRISES AND PRISON CANTEENS SHALL BE TRANSFERRED TO THE CRIME VICTIMS COMPENSATION FUND.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 148-2 reads as rewritten:
"§ 148-2.  Prison moneys and earnings.
(a)	Persons authorized to collect or receive the moneys and earnings of the State prison system shall enter into bonds payable to the State of North Carolina in penal sums and with security approved by the Department of Correction, conditioned upon the faithful performance by these persons of their duties in collecting, receiving, and paying over prison moneys and earnings to the State Treasurer. Only corporate security with sureties licensed to do business in North Carolina shall be accepted.
(b)	All revenues from the sale of articles and commodities manufactured or produced by prison enterprises shall be deposited with the State Treasurer to be kept and maintained as a special revolving working-capital fund designated 'Prison Enterprises Fund.' Revenue in the Prison Enterprises Fund shall be applied first to capital and operating expenditures, including salaries and wages of supervisory personnel, necessary to develop and operate prison industrial and forestry enterprises to provide diversified employment for prisoners. Of the remaining revenue in the Fund, fifty percent (50%) shall be credited to the Crime Victims Compensation Fund, established in G.S. 15B-23, and, at the direction of the Governor, fifty percent (50%) shall be used for other purposes within the State prison system or shall be transferred to the General Fund.  The provisions of this section shall not apply to revenues generated from private prison enterprises conducted pursuant to G.S. 148-70 except for lease and rental income.
(c)	Notwithstanding G.S. 147-77, Article 6A of Chapter 147 of the General Statutes, or any other provision of law, the Department of Correction may deposit revenue from prison canteens in local banks.  The profits from prison canteens shall be deposited with the State Treasurer on a monthly basis.  The State Treasurer shall credit fifty percent (50%) of the profits to an account designated as the Inmate Welfare Fund and shall credit the remaining fifty percent (50%) of the profits to the Crime Victims Compensation Fund established in G.S 15B-23.
(d)	The total amount transferred under this section in a fiscal year to the Crime Victims Compensation Fund shall not exceed ten million dollars ($10,000,000).  If a transfer otherwise required by this section would exceed this limit, the amount that would have been transferred shall be used in the same manner as the portion of the prison enterprises revenues or prison canteen profits, as appropriate, that is not required to be transferred to the Crime Victims Compensation Fund."
Sec. 2.  G.S 15B-23 reads as rewritten:
"§ 15B-23.  Crime Victims Compensation Fund.
There is established the Crime Victims Compensation Fund.  Revenue in the Crime Victims Compensation Fund includes amounts credited to the Fund under G.S. 148-2 and other funds. Any surplus in the Crime Victims Compensation Fund shall not revert.  The Crime Victims Compensation Fund shall be kept on deposit with the State Treasurer, as in the case of other State funds, and may be invested by the State Treasurer in any lawful security for the investment of State money.  The Crime Victims Compensation Fund is subject to the oversight of the State Auditor pursuant to Article 5A of Chapter 147 of the General Statutes."
Sec. 3.  This act becomes effective July 1, 1994, and applies to amounts credited to the Prison Enterprises Fund and canteen profits earned on or after that date.