Amend CSSB 1952 (house committee printing), by striking 
Article 5B (page 110, line 16, through page 138, line 24) and adding 
a new  Article 5B to read as follows:

ARTICLE 5B.  PRISON PRIVATIZATION STUDY
	SECTION 5B.01.  CREATION.  The select committee on prison 
privatization is created.
	SECTION 5B.02.  COMPOSITION.  (a)  The select committee is 
composed of:      
		(1)  three members appointed by the governor;                                 
		(2)  three members appointed by the lieutenant 
governor;                    
		(3)  three members appointed by the speaker of the 
house of representatives;
		(4)  one member employed by the Legislative Budget 
Board and appointed by the executive director of that board;
		(5)  one member employed by and appointed by the 
comptroller;               
		(6)  one member employed by and appointed by the state 
auditor; and         
		(7)  one member employed by the Criminal Justice Policy 
Council and appointed by the executive director of that council.
	(b)  Each individual required to make an appointment under 
Subsection (a) shall make the appointment as soon as possible after 
the effective date of this Act, but not later than October 1, 2003.
	SECTION 5B.03.  DUTIES.  (a)  The select committee on prison 
privatization 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 newly 
created 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 department 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 achievements of those contractors;
		(7)  which facilities or services currently provided 
primarily 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.
	(b)  In addition to the issues described by Subsection (a) of 
this section, the report must analyze the impact that 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, impact caused by higher employee turnover rates, and impact 
on community facilities and services.
	(c)  The select committee shall present copies of the report 
not later than November 1, 2004, to the governor, the lieutenant 
governor, and the speaker of the house of representatives.
	SECTION 5B.04.  HEARINGS.  The select committee on prison 
privatization, for the purpose of gathering information necessary 
for the preparation of the report required by Section 5B.03 of this 
article, 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 5B.05.  EXPIRATION.  The select committee on prison 
privatization is abolished and this article expires November 30, 
2004.