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By: Allen H.B. No. 51
A BILL TO BE ENTITLED
AN ACT
relating to the creation of a select committee to study prison
privatization.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. CREATION. The select committee on prison
privatization is created.
SECTION 2. COMPOSITION. (a) The select committee is
composed of:
(1) three members appointed by the governor;
(2) three members of the senate appointed by the
lieutenant governor; and
(3) three members of the house of representatives
appointed by the speaker of the house of representatives.
(b) Each individual required to make an appointment under
Subsection (a) of this section shall make the appointment as soon as
possible after the effective date of this Act, but not later than
January 15, 2004.
(c) The governor shall designate one member of the select
committee to serve as the presiding officer of the committee.
SECTION 3. DUTIES. (a) The select committee shall prepare
a report that, for the purposes of comparing cost-effectiveness and
program effectiveness of prison facilities operated by the Texas
Department of Criminal Justice and prison facilities operated by or
potentially operated by private contractors, analyzes 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 to the state if prison
privatization is increased;
(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
and costs for provision of programs by contractors;
(5) the history of prison privatization efforts in
this state and in other populous states, with special emphasis on
subissues related to program effectiveness, performance records,
cost savings, ethical concerns, and impact on relevant communities;
(6) as to potential contractors, the backgrounds and
past performances of those contractors;
(7) which facilities or services currently primarily
provided by the Texas Department of Criminal Justice could best be
performed by a contractor; and
(8) whether ethical standards could be adopted to
protect the state from corruption or ethical conflicts.
(a-1) The Legislative Budget Board, the comptroller, and
the state auditor shall comply with requests for assistance from
the select committee as necessary to assist the committee in
performing the committee's duties under this Act.
(b) In addition to the issues described by Subsection (a) of
this section, the report must analyze the impact that the
privatization of a Texas Department of Criminal Justice facility or
function would have on the community in which the function is
performed or the facility is located, including economic impact,
workforce impact, and impact on community facilities and services.
(b-1) The presiding officer of the select committee shall
instruct the members of the committee that in analyzing the issues
described by Subsection (a) of this section, the members if
possible shall compare the past and the predicted performances of
private contractors with the past and predicted performances of the
Texas Department of Criminal Justice.
(c) In addition to the information required by Subsections
(a) and (b) of this section, the report must contain a qualitative
and quantitative comparison of the performance of vendors operating
facilities under Subtitle G, Title 4, Government Code, and the
performance of facilities operated by the Texas Department of
Criminal Justice that provide the same level of programs and
services. The report must analyze programs and services provided
not just for inmates in the general population, but also for inmates
in geriatric programs, in-prison therapeutic facilities,
administrative segregation, and other programs not provided to
inmates in the general population. The comparison must provide
information on the operations of each vendor and comparable
department programs and facilities, including information about
treatment programs implemented, numbers of escapes, major
disciplinary events, and other matters determined to be important
by the select committee.
(d) The select committee shall present copies of the report
not later than December 1, 2004, to the governor, the lieutenant
governor, and the speaker of the house of representatives.
(e) In preparing the report under this section, the select
committee shall pay particular attention to identifying overhead
costs to the Texas Department of Criminal Justice and overhead
costs to private contractors, and shall present that information in
a manner that provides for meaningful comparisons of costs of
providing correctional services. The overhead costs described by
this subsection include medical costs, transportation costs,
facilities and maintenance costs, and similar costs. The report
must also identify any increase in costs to the Texas Department of
Criminal Justice for items described by this subsection in the
event that some or all of the functions described by those items are
performed under contract.
SECTION 4. HEARINGS. The select committee, for the purpose
of gathering information necessary for the preparation of the
report required by Section 3 of this Act, shall hold at least four
public hearings. At least one of the hearings must be held in a
municipality with a population greater than one million and at
least two of the hearings must be held in a municipality or county
in which more than one division of the Texas Department of Criminal
Justice operates a facility or performs a function.
SECTION 5. FUNDS TRANSFER. The Texas Department of
Criminal Justice shall enter into a memorandum of understanding
with the select committee to provide the committee with not less
than $200,000 from the department's budget for the biennium ending
August 31, 2005. The select committee shall use funds received from
the department under this section to hire technical assistance that
is professional and unbiased and that will assist the committee in
performing its duties under this Act. The department and the select
committee shall enter into the memorandum of understanding not
later than January 31, 2004. The memorandum must specify that the
funds will be transferred to the select committee according to a
schedule established by the select committee.
SECTION 5A. CONFLICTS PROHIBITED. A member of the select
committee or an employee of or person who contracts with the
committee may not have a direct financial interest in an entity that
contracts for the provision of prison beds or other correctional
services with:
(1) this state or a political subdivision of this
state;
(2) another state or a political subdivision of
another state; or
(3) the federal government.
SECTION 6. EXPIRATION. The select committee is abolished
and this Act expires December 31, 2004.
SECTION 7. EFFECTIVE DATE. This Act takes effect
immediately if it receives a vote of two-thirds of all the members
elected to each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this Act takes effect on the 91st day after the
last day of the legislative session.