H.B. 51 78(1)    BILL ANALYSIS


H.B. 51
By: Allen
Government Reform
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Currently, Section 495.007, Government Code, restricts the Texas Board of
Criminal Justice from entering into contracts with private vendors or
counties for more than 4,580 beds. 

During the 77th regular session, an informal working group of state
officials and interested stakeholders examined the feasibility of
expanding privatization in Texas' criminal justice system. The consensus
of most participants in the working group was that more information is
necessary to examine the public policy issues regarding privatization of
prisons.   

HB 51 creates a select committee on prison privatization to gather
information and compile a report on the impact of potential expanded
contracting with private vendors. 


RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
rulemaking authority to a state officer, department, agency, or
institution. 


ANALYSIS

HB 51 creates the select committee on prison privatization.  The
composition of the select committee is composed of: one member appointed
by the governor; three members appointed by the lieutenant governor; three
members appointed by the speaker of the house; one member employed by the
Legislative Budget Board and appointed by the executive director of that
board; one member employed by and appointed by the comptroller; and one
member employed by and appointed by the state auditor.  The appointments
to this select committee must be made by November 15, 2003. 

The select committee on prison privatization is charged to analyze and
report on the following issues: 

1.the best possible methods and processes for administering and monitoring
contracts for prison privatization; 
2.whether an existing agency of the state or a new agency should
administer future prison privatization contracts; 
3.the probable cost savings associated with increased private prison
contracts; 
4.the standards that should be used to compare program effectiveness and
the best methods for comparing costs for provision of programs by the
Texas Department of Criminal Justice (TDCJ) and costs for provision of
programs by contractors; 
5.the history of prison privatization efforts in Texas and other states,
with special emphasis on certain subissues; 
6.the backgrounds and past achievements of private contractors;
7.which facilities or services provided by TDCJ could best be performed by
a contractor; 
8.whether ethical standards could be adopted to protect the state from
corruption or ethical conflicts. 



 The report must also analyze the impact that privatization would have on
the neighboring community, including economic impact, workforce impact,
employee turnover rates, and impact on community facilities and services.

Further, the report must contain a qualitative and quantitative comparison
of the performance of private vendor facilities and the performance of
TDCJ facilities that provide the same level of programs and services.  The
comparison must contain information about treatment programs, numbers of
escapes, major disciplinary events, and other matters determined by the
select committee. 

The select committee is required to hold at least four public hearings,
and present the report not later than November 1, 2004. 

HB 51 requires TDCJ to provide the select committee with at least $200,000
from TDCJ's biennial budget ending August 31, 2005.  By November 15, 2003,
TDCJ and the select committee must enter into a memorandum of
understanding regarding the transfer of these funds. The select committee
is directed to use these funds to hire unbiased, professional technical
assistance to assist the committee.  The select committee is abolished and
this Act expires November 30, 2004. 


EFFECTIVE DATE

Upon passage, if the Act receives the necessary vote.  If the Act does not
receive the necessary vote, the Act takes effect on the 91st day after the
last day of the legislative session.