BILL ANALYSIS SENATE SUBCOMMITTEE ON PRISON CONSTRUCTION AND OPERATIONS Senator Daniel E. Boatwright, Chair S 1995-96 Regular Session B 2 1 SB 2156 (Lewis) 5 As amended April 8, 1996 6 Hearing date: April 9, 1996 Penal Code SAH:js the California Correctional Facilities Privatization Commission Act of 1996 HISTORY Source: Author Prior Legislation: SCA 7 (Campbell) - currently in Senate Committee on Constitutional Amendments Support: Alternative Programs, Inc.; Cornell Corrections, Inc.; Corrections Corporation of America; Management and Training Corporation; Maranatha Production Company, LLC; Wakenhut Corporation; Cal-Tax Opposition: American Civil Liberties Union; California Correctional Peace Officers Association; California State Employeeso Association; California Independent Public Employees Legislative Council, Inc.; California Probation, Parole, and Correctional Association; Union of American Physicians and (More) SB 2156 (Lewis) Page b Dentists KEY ISSUE SHOULD THE California Correctional Privatization Commission BE CREATED to enter into contracts with contractors for the Procurement of land and the design, financing, acquisition, leasing, construction, and operation of private correctional facilities IN CALIFORNIA, AS SPECIFIED? PURPOSE Under existing law, the California Department of Corrections and the Director of Corrections are responsible for administering the state prison system. The Department is authorized to contract for supplies, utilities, and other necessary goods and services needed to operate the prison system. (Penal Code Sections 2051 et seq.) The Department may generally plan for new construction of state prisons but any proposed new prison sites, the authority to build, and the financing of new prisons is generally the subject of legislative measures which require the Governoros signature. Existing law allows the supervision of inmates in restitution centers by contract with private nonprofit or profit corporations, or by peace officer personnel of the Department of Corrections on a 24-hour basis. If the supervision is by a private entity, the per inmate cost of operating these facilitates under contract shall be less than the per inmate cost of maintaining custody of inmates by the Department. (Penal Code Section 6225) Existing law also allows the California Departments of Corrections and the Youth Authority to enter into long-term contracts with local governments to house adult and juvenile parole violators and offenders with short prison terms (less (More) SB 2156 (Lewis) Page c than eight months), in city or county facilities specially designed for their incarceration. (Penal Code Section 6250) Under current law the Department may enter into contractual agreements with private enterprises to incarcerate short term state prison felons. Under this authority the Department may purchase additional bed capacity through community correctional programs. (Penal Code Section 6250 et seq.) Existing law provides for state agencies to use personal services contracts when specific standards are met; procedures are followed; and organizations representing state employees are notified for comment. (Government Code Sections 19130, 19131, and 19132) The California Constitution provides for a civil service system for officers and employees of the state, with a merit/competitive examination process established for permanent appointment and promotion. (Calif. Const. Art. VII, Section 1 [a] and [b]) This bill proposes the creation of a new California Correctional Privatization Commission composed of five members appointed by the Governor and subject to Senate confirmation and the Governor shall appoint the chair and vice chair. The bill specifies that none of the members shall be an employee of the Department of Corrections; one member shall be a minority as defined in the Government Code; four members shall be employed in the private sector; terms are for four years; conflict of interest prohibitions are included; members shall serve without compensation but are to be entitled to per diem and expenses. The Commission may employ an executive director and staff and may lease necessary office space. The Commission would continue in existence until January 1, 2002, unless either: (1) The Governor issues an Executive Order during 2001 to extend the commission an additional five years, or; (More) SB 2156 (Lewis) Page d (2) The Legislature adopts a concurrent resolution during 2001 to extend the commission an additional five years. In either case, the Commission would remain in effect only until January 1, 2007, unless continued by statute. The Commission would be authorized to construct for up to five facilities until January 1, 2002, as follows: (1) One combination minimum and minimum/medium security prison with a design capacity of 1,000 to 2,000 inmates. (2) Two large combination medium and maximum security prisons with a design capacity of 2,500 to 3,000 inmates each. (3) Two small combination medium and maximum security prisons with a design capacity of 500 to 1,000 inmates each. At least one each of the small and large combination prisons shall be ready for occupancy by January 1, 1999. If the Commission is extended during 2001 by an Executive Order or by a Legislative Concurrent Resolution, the Commission may contract for an additional five prisons without any other legislative authorization. The Commission would be authorized to enter into a contract with one contractor per facility for the design, acquisition, financing, leasing, construction, and operation of a correctional facility, along with the procurement of land. The Commission shall be exempt from the existing Government Code provisions related to state acquisition of property by the Public Works Board. The Commission shall be limited to contracts with a total cost (More) SB 2156 (Lewis) Page e per cell not exceeding $75,000. That cost per cell shall include the total construction costs, including land acquisition, utility connections, all preconstruction activities, including studies, architectural and engineering work, and actual construction expenditures. The Commission shall encourage innovation and shall not require any prototype designs used by or created for the Department of Corrections. Before finalizing any contract, the Commission shall first provide the California Department of Corrections a copy of the contract for review for five days. The Department shall sign off on any contract that has been finalized. That sign off shall constitute awareness of the Department of the terms and conditions of the contract and agreement by the Department to abide by the contract. The Commission shall report to the Speaker, President pro Tempore, and the Chair of the Joint Legislative Committee on Prison Construction and Operations, the Governor, and the Department of Corrections, by December 1 of each year the status of the program authorized by this bill. That report shall include comparisons with inmates housed by the Department of Corrections, including the recidivism rates, staff to inmate ratios, and staff injury claims. This bill sets forth detailed requirements for contracting, including compliance with applicable state and federal laws as well as accreditation by the American Correctional Association. Specified inmate programs at least at the level of those provided by the Department of Corrections would be required. Contracts shall include authorization for tax-exempt financing using bonds, certificates of participation, lease-purchase agreements, or other tax-exempt financing methods. Contracts shall require substantial employment by minorities unless a good faith effort fails to achieve that status. (More) SB 2156 (Lewis) Page f Each contract shall contain penalties and incentives to ensure compliance by the contractor with the contract. The Commission shall appoint a full-time contract monitor for each contract with cost reimbursed by the facility contractor. If the Commission is not extended during 2001 or if it is not extended beyond 2007, the bill provides for successful contractors to continue operation after those dates, supervised by the Department of Corrections. This bill provides that once the debt service obligation has been paid in full by the state, the title to the facility shall revert to the state. If a contract is terminated or not extended, the state shall be able to acquire the title by paying off the remaining principle due on the contract. This bill provides for specific use of any excess revenues generated by sales to inmates. The purpose of this bill is to allow California to utilize privatized prison space for inmates in an effort to provide a cost-effective alternative to state prison operations. COMMENTS 1. Billos Legislative Findings and Declarations: a. Public safety is a primary function and consideration of government. As evidenced by the overwhelming support for Proposition 184, the oThree Strikes Initiativeo on the November 8, 1994 ballot, the people of California are demanding that violent, serious, and repeat felons be incarcerated with longer sentences. (More) SB 2156 (Lewis) Page g b. As a result of the passage of Proposition 184 and other laws recently enacted, the inmate population of the state prison system is projected to increase by unprecedented numbers. Upon the completion of current authorized new prison construction and with current inmate housing capacity, the state will reach its capacity to house inmates by mid-1998. c. The Legislative Analyst estimates that the state will need to construct 24 new prisons over the next several years, each housing 5,300 inmates, in order to house an inmate population of 306,000, which is projected for mid-2005. The construction cost for these 24 new prisons would be about $7 billion plus additional debt service costs. The total operating cost for these 24 prisons would be an additional $1.8 to $2 billion annually. d. The Legislative Analyst further estimates that since the Legislature did not authorize the construction of any new state prisons by January 1996, the state will not have the capacity to incarcerate about 9,000 new inmates before the end of 1998. The state must therefore develop a strategy now to deal with the need for more prison beds. e. Controlling the rapid growth of Corrections construction and operations costs is one of the greatest challenges facing the state. The proposed budget for the Department of Corrections for the 1996-97 fiscal year is about $3.8 billion. f. In order to maintain public safety, avoid unwanted court intervention, address the unprecedented inmate population growth, and maintain a sense of fiscal responsibility to the people of California, it is critical that the state establish a commission to expedite the construction and operation of new state prisons with the use of private sector support and innovations. (More) SB 2156 (Lewis) Page h 2. Recent Legislative Analystos Office Report on Prison Bed Space. In a recent report released by the Legislative Analystos Office (LAO), oAccommodating the Stateos Inmate Population Growth,o December 28, 1995, the LAO reported that even if the Legislature should authorize any additional new prisons for construction by January 1996, the additional prison bed space provided would not be available in time to house all inmates by mid-1998. The report noted it generally takes the Department of Corrections about 40 months to complete environmental and planning documents and construct a prison after it is authorized by the Legislature. However, the Department has three proposed prisons in which the environmental impact reports have already been completed. The LAO estimates that these three prisons could actually be completed in 34 months once authorized by the Legislature. The most critical point made in the Analystos report, however, is that by mid-1998 othe state will be faced with accommodating about 9,000 inmates through at least most of 1998 in a manner other than construction of new prisonso under the current construction process. COULD PRIVATE CORRECTIONAL FIRMS CONSTRUCT PRISON FACILITIES FASTER THAN THE DEPARTMENT OF CORRECTIONS? COULD THEY PROVIDE THE SAME LEVEL OF SECURITY AS A STATE FACILITY? COULD THEY DO SO IN A COST-EFFECTIVE MANNER? 3. Administrationos Proposal for Handling Inmate Population Growth. The Governor noted in his Budget Summary for 1996-97 that he is proposing a o$1.865 billion General Obligation bond for a multi-year prison construction and renovation program for the 1996 ballot. These funds will allow planning and construction of six new prisons with a design bed capacity of approximately (More) SB 2156 (Lewis) Page i 15,000 beds (capable of housing approximately 27,000 inmates) by 2000-01.o In addition, the bond measure will provide funding for major and minor capital outlay projects for the Department. The Governoros bond measure is currently proposed in Assembly Bill 3116 (Brulte) but has not been heard yet in the Assembly Public Safety Committee. An additional Assembly Bill, AB 3461 (Brulte), would authorize the issuance of lease-purchase bonds or notes to finance the construction of nine additional new prisons to be determined by the Department of Corrections. ASSUMING THE CALIFORNIA VOTERS APPROVE THIS BOND MEASURE ON THE NOVEMBER 1996 BALLOT, COULD THE DEPARTMENT PROVIDE THE NECESSARY BED SPACE BY MID-1998? WHAT WOULD BE THE ADMINISTRATIONoS PLANS SHOULD THE VOTERS REJECT THE NOVEMBER 1996 PRISON BOND MEASURE? WOULD THE FINANCIAL MARKET CONTINUE TO APPROVE CALIFORNIAoS RELIANCE ON BONDS FOR 24 ADDITIONAL PRISONS? SINCE THE STATE WOULD NOT HAVE TO ISSUE ANY BONDS UNDER A PRIVATIZATION CONTRACT, WOULDNoT THIS IMPROVE THE STATEoS OVERALL BOND RATING? The Governoros Budget Summary also notes that the California Department of the Youth Authority will grow by six percent by the year 2000. The CYA facilities are currently operating at about 150 percent of design capacity. In order to reduce overcrowding and provide additional space for future growth, the Governor is proposing $204.5 million in additional funds for CYA construction needs: $150 million in new bond funds in multi-year projects for 1,450 additional beds; $51 million in bond funds for major and minor capital outlay; and $3.5 million in General Funds for minor capital outlay projects. Of the proposed projects noted, the CYAos 1996-97 budget includes $27.7 million in bond funds and $3.5 million in (More) SB 2156 (Lewis) Page j General Funds. SHOULD THE COMMISSION ESTABLISHED UNDER THE PROVISIONS OF THIS BILL ALSO BE RESPONSIBLE FOR OBTAINING ADDITIONAL WARD SPACE FOR THE CALIFORNIA DEPARTMENT OF THE YOUTH AUTHORITY? 4. Efficiency in State Government Operations. According to the Department of Finance (DOF) in the Governoros Budget Summary, 1996-97, a guiding principal of the current Administration has been oimproving the quality of state programs and services, while containing the cost of delivering them.o It notes that taxpayers want government to be effective, accountable, and to deliver quality services at no higher cost than necessary, and that most taxpayers want limited growth in government. The Budget Summary reports that the state oleads the nation in the fewest number of state employees per population with 8.3 state employees per 1,000 citizens.o It also states that while the number of employees involved in public safety work has increased by 37 percent since 1990-91, the Governor has reduced the balance of the state workforce personnel below the 1990-91 level. In order to ensure that Californiaos government is efficient, innovative, and properly focused on basic state services and functions, the Governor has ordered all state agencies to conduct a top-to-bottom review of their operations to oidentify their highest priority functions and opportunities for out-sourcing, consolidating and divesting duties where appropriate. Departments and agencies are required to submit plans for divestiture of programs where feasible, and for the re-engineering of remaining, priority functions to deliver higher-quality services at lower costs.o Although the Governoros proposed 1996-97 budget did not include any specific major privatization proposals, the Governor has stated in his January State of the State address that he would do so by mid-April. (More) SB 2156 (Lewis) Page k HAS THE ADMINISTRATION IDENTIFIED THE OPPORTUNITIES FOR OUT-SOURCING, CONSOLIDATING AND DIVESTING DUTIES WITHIN THE CALIFORNIA DEPARTMENT OF CORRECTIONS? WOULD THE ADOPTION OF THIS BILL ASSIST THE ADMINISTRATION IS FULFILLING THAT MISSION? 5. Privatization in General. In oThe 1996-97 Budget: Perspectives and Issueso report, the Legislative Analystos Office provides some valuable background information on the different types and forms of privatization, current forms of privatization in state government, and a number of issues related to the privatization of government functions (see page 173). More importantly, the report provides the Legislature with a framework for evaluating privatization proposals. In considering privatization proposals, the LAO recommends that the Legislature ask the following four basic questions: a. What are the goals and objections of privatizing? The objective of privatization should be to improve the effectiveness and efficiency of services provided. In order to achieve this goal, the state should clearly identify the level of quality and accountability. b. What is the appropriate type and form of privatization? The LAO notes that there are four basic elements to providing any service: Policymaking (determining service level and quality); Funding (method of financing to pay for service); Administration and Oversight (overseeing day-to-day operations); and Service Delivery (providing the good or service). When considering privatization, it is important to make clear which of these four basic functions are to be carried out by the public sector and by the private (More) SB 2156 (Lewis) Page l sector. In some cases, it may make sense to split the function between the two entities. c. Are the conditions orighto to privatize? In order to reap the benefits of privatization there must be a competitive environment. Such an environment would allocate resources to their most productive uses, encourage efficiency, stimulate innovation, and provide for consumer choice. d. What are the potential problems and risks of privatizing? The LAO notes a number of potential problems with privatization. They are as follows: Accountability. How can government ensure it does not lose control and maintainan appropriate degree of oversight and responsibility? Accurate Cost Comparisons. Governments need to ensure that they do not overstate the financial benefits of privatization by conducting accurate cost comparisons. Realization of Net Benefits. What steps are necessary to capture the potential benefits of privatization for taxpayers? In some negative cases, private firms have kept some financial benefits for profits. Quality Control. What steps can be taken to ensure quality is provided and maintained? Legal Considerations. What is the nature of the stateos legal liability for problems arising from privatized programs? Service Disruptions. How can government protect itself against untimely disruptions in the provision of needed public services by private entities with whom they privatize, either due to lack of adequate performance or withdrawal from services? (More) SB 2156 (Lewis) Page m Transitional Workforce Problems. How can government best deal with the one-time government job losses that will occur when private sector jobs replace government jobs? Dismantling of Public Institutions and Skills. What are the short-term and long-term implications of dismantling public institutions and public sector skills in the event that privatization turns out to be less than desirable? 6. Current Forms of Privatization Within the Department of Corrections. One of the most well-developed areas of privatization in the country today is within the area of adult and juvenile corrections. As of December 31, 1994, the total rated capacity of all privatized adult correctional facilities under contract in the United States was 45,476 with the security levels ranging from minimum to maximum security inmates. The rated capacity of the facilities range from as low as 32 and up to 1,500 inmates. Although the Department of Corrections currently contracts for approximately 5,700 community correctional beds with various public and private entities as allowed under existing law, these beds are contracted with numerous providers at over 50 different locations. The capacities of these facilities range from 6 beds to 446 beds with the majority of the facilities with less than 80 beds. Most of these facilities do not enjoy the high economy of scale that a larger facility would have. The Department also currently reimburses local counties for incarcerating state prison inmates for short periods of time. The Department reimburses some counties at a maximum per diem rate of $59 per day. In addition, the Department contracts with Alameda County to house parole violators with short prison revocation terms in one of its local county jails. The Departmentos proposed 1996-97 budget includes a proposal to contract with Los Angeles County for about 3,000 vacant county (More) SB 2156 (Lewis) Page n jail beds for state prison inmates. Even though the Department currently has over 134,000 inmates, the Department of Corrections is unable to keep all the contract beds filled. With an overall current prison overcrowding rate of approximately 181 percent, contract community correctional center beds are only at 97 percent of capacity and rarely ever overcrowded. The main reason that the Department cannot provide more inmates to these correctional facilities is that the current laws are very specific as to what type of offenders may be housed in a community correctional facilities. The contract facilities that currently house the roughly 5,700 inmates and parole violators are basically designed to house minimum (Level I) and a few minimum-medium (Level II) security inmates. In addition to the current 5,700 community correctional center beds, the Department of Corrections is currently evaluating 19 different proposals from private firms for the construction and operations of community correctional facilities for suitable inmates. Although the Department is attempting to add 2,000 additional beds, the number proposed surpassed 9,000 beds. In addition to contracting for private incarceration, the Department of Corrections also contracts for a variety of other services such as inmate medical care, prison construction related services, and parolee services. GIVEN THE DEPARTMENToS HISTORY OF CONTRACTING FOR THE INCARCERATION OF INMATES, WOULD NOT ANY PHILOSPHICAL ARGUMENT AGAINST PRIVATIZATION OF LARGER PRISONS BE CONTRADICTORY? CAN THE STATE TAKE THE NEXT STEP TO NOW CONTRACT FOR LARGER PRISONS? OR PRISONS FOR MEDIUM AND MAXIMUM SECURITY LEVEL INMATES? 7. General Restrictions on State Agencies Contracting Out for (More) SB 2156 (Lewis) Page o Services. Article VII of the California Constitution, which describes the state civil service, is generally interpreted as restricting contracting outside of civil service to fulfill state tasks or activities. As one court has recently restated: o...subdivision (a) of 19130 is carefully crafted to permit personal service contracts to achieve cost savings only when they will not have detrimental effect on the integrity of the civil service system...the statute combines considerations of efficiency and economy with other interests, including those of state employees.o CSEA v. State of California, 199 Cal. App. 3d 840 (1988). Existing law, Government Code Section 19130 (a) specifies the authority for state agencies to ocontract outo for services in order to achieve cost savings. That Section includes the following: Contracting out is permissible to achieve cost savings when specific conditions, including the following, are met... The contracting agency clearly demonstrates that the proposed contract will result in actual overall cost savings to the state, provided that: In comparing costs, there shall be included the state's additional cost of providing the same service as proposed by a contractor. These additional costs shall include the salaries and benefits of additional staff that would be needed and the cost of additional space, equipment, and materials needed to perform the function. In comparing costs, there shall be included in the cost of a contractor providing a service any continuing state costs that would be directly associated with the contracted function, such as those for inspection, supervision, and monitoring. Proposals to contract out work shall not be approved solely (More) SB 2156 (Lewis) Page p on the basis that savings will result from lower contractor pay rates or benefits. Proposals to contract out work shall be eligible for approval if the contractor's wages are at the industry's level and do not significantly undercut state pay rates. The contract does not cause the displacement of civil service employees. The contract does not adversely affect the state's affirmative action efforts. The savings shall be large enough to ensure that they will not be eliminated by private sector and state cost fluctuations that could normally be expected during the contracting period. The amount of savings clearly justify the size and duration of the contracting agreement. The contract includes specific provisions pertaining to the qualifications of the staff that will perform the work under the contract, as well as assurance that the contractor's hiring practices meet applicable nondiscrimination, affirmative action standards. The potential for future economic risk to the state from potential contractor rate increases is minimal. 8. Experience of the State of Florida Corrrectional Privatization Commission. The model for the authoros proposed California privatization commission is based on the process recently adopted by the State of Florida. Chapter 93-406, Laws of Florida, created the Correctional Privatization Commission for the purpose of entering into contracts for the construction and operation of private correctional facilities in Florida. This commission was established independently of the Florida State Department of Corrections. (More) SB 2156 (Lewis) Page q Since being established, the Florida Commission has authorized the construction and operation of six new correctional facilities: a. Two adult medium-security level facilities with 750 beds each which are already operational; b. One adult close medium-security facility with 1,318 beds which is still under construction; and, c. Three juvenile facilities with 350 beds each which are also still under construction. The State of Florida Office of Program Policy Analysis and Government Accountability (OPPAGA) recently conducted a review of the progress made by the Florida Correctional Privatization Commission in contracting for prison capacity (Report No. 95-12, November 13, 1995). The report has not made any final conclusions as of yet but does provide some interesting observations. In attempting to determine whether the private prisons provided any cost savings, the report noted that it was difficult to compare state and private institutions since they had different inmate programs. In order to make a conclusion, the report stated that the Florida Department of Corrections and the Commission would have to first agree on comparable institutions for such a comparison. The department attempted to contract for private facility capacity on its own. In a comparison of privatization efforts between the department and the commission, the report noted that while the department attempted to facilitate privatization efforts by providing vendors with technical assistance, they hindered privatization by: a. Requiring vendors to mirror the departmentos own operations, which may limit cost savings and the (More) SB 2156 (Lewis) Page r identification of innovative approaches to corrections; b. Establishing Requests for Proposals (RFPs) which vendors perceived as overly demanding and highly restrictive, thus, limiting the stateos choices of vendors. Only two vendors submitted reponses to the departmentos RFP. c. The department changed the mission 9 days before the opening of its contracted private facility, thus requiring physical plant and vendor program changes. While the commission facilitated privatization by conducting open meetings to develop RFPs, by publishing RFPs which clearly delineated vendor requirements and selection criteria, and by meeting with vendors who submitted losing bids, the report did note that there were two factors which possibly hindered privatization: a. The contract award process requires that that the omost qualifiedo vendor be selected. The most qualified vendor, however, happened to be the highest bidder in four of six contracts awarded. There were lower bidders who were highly qualified but happened to not be the most qualified. The report estimates that an additional $26 million could have been saved if the law had been amended to allow the commission to select the lowest bid from the three highest qualified vendors. b. The Florida law does not permit previous employees from the Florida Department of Corrections to be on - or work for - the commission within 2 years of that relationship, nor does it allow the department to review contracts even though the department is obligated to abide by them. The departmentos role with contracted institutions is not clear. SHOULD THE LEGISLATURE CONSIDER AMENDING THIS BILL TO REQUIRE THAT ONE MEMBER OF THE COMMISSION ALSO BE A MEMBER OF THE (More) SB 2156 (Lewis) Page s STATE BOARD OF CORRECTIONS, EXCLUDING THE AGENCY SECRETARY AND THE DIRECTORS OF THE DEPARTMENTS OF CORRECTIONS AND THE YOUTH AUTHORITY? HAS THIS BILL SUFFICIENTLY CLARIFIED THE ROLE OF THE DEPARTMENT OF CORRECTIONS? 9. Provision in This Bill for Revenues From Inmate Purchases. This bill proposes to establish a new approach for handling revenues generated by the inmate canteen and phone uses in private facilities. Currently, any revenue generated by inmate collect calls revert to the state General Fund Account. In addition, the Departments of Corrections and Finance are authorized to pay for any services provided to operate or audit the institution canteen programs. SHOULD THE LEGISLATURE OPERATE INMATE CANTEEN OPERATIONS AND TRUST ACCOUNTS, AND TREAT INMATE PAY PHONE REVENUE DIFFERENTLY THAN NORMAL STATE OPERATIONS? 10. o Sunseto on the Commission in This Bill. This bill creates a process for extending the commission by five additional years after the first five years at the discreation of either the Governor by Executive Order or by a Legislative Concurrent Resolution. The normal process would be to have a bill approved by the Legislature and signed by the Governor. IS THIS PROVISION UNIQUE ENOUGH TO BE CHALLENGED BY THE COURTS, ESPECIALLY THE PROVISION ALLOWING THE LEGISLATURE TO ACT BY RESOLUTION? WOULD IT BE MORE APPROPRIATE TO SIMPLY ADOPT A TEN YEAR SUNSET REPEAL ON THE COMMISSION? 11. Authority for New Prisons in This Bill. (More) This bill proposes the authorization of a combination minimum and minimum-medium security facility with a capacity of 1,000 to 2,000 inmates. However, existing law currently authorizes the Department to construct such facilities. In fact, as mentioned above, the Department currently is reviewing RFPos (Request for Proposals) for an additional 2,000 such beds. SINCE FUTURE BED SPACE NEEDS ARE FOR MEDIUM AND MAXIMUM SECURITY INMATES, SHOULD THE AUTHORIZATION FOR MINIMUM AND MINIMUM-MEDIUM SECURITY BEDS BE ELIMINATED? SHOULD THIS BILL SPECIFY THE TYPES OF NEW FACILITIES, OR WOULD IT BE MORE APPROPRIATE TO LEAVE THE BED CAPACITY UNSPECIFIED? (More) SB 2156 (Lewis) Page u 12. Related Legislative Discussion - SB 760 (Lockyer). The Conference Committtee on SB 760 (Lockyer) is currently devising a muti-year plan for accomodating future inmate population needs. That discussion includes the privatization of new prisons, as well as orealignmento of county/state inmate housing. SHOULD THIS BILL SPECIFY A NUMBER FOR PRIVATIZED NEW PRISONS OR WOULD IT BE MORE APPROPRIATE TO NOT MAKE THIS BILL SPECIFIC PENDING THE SB 760 CONFERENCE COMMITTEE DETERMINATION OF ACTUAL INMATE HOUSING NEEDS? 13. Use of oper cello as Criteria in This Bill. This bill would prohibit the commission from contracting for prison construction facilities which have a per cell construction cost of $75,000. Under a private contract, the state would not directly pay for any construction cost. These costs would be included as part of the overall reimbursement schedule. The Florida statutes allow the ocontracto with a private operator to set the bed capacity at a contracted facility and the number of inmates shall be between 90 and 100 per cent of that number. DOES THIS BILL USE AN APPROPRIATE CONSTRUCTION CAP TO ENSURE THAT EFFICIENT FACILITIES ARE CONSTRUCTED? SINCE SOME PRIVATE FACILITIES WOULD NOT HOUSE A MEDIUM SECURITY INMATE IN A CELL, SHOULD THIS LEGISLATION CONSIDER ANOTHER METHOD OF CALCULATION FOR INMATE HOUSING? 14. Additional Issues for Consideration. This bill proposes a relatively complex new process and it may be anticipated that additional issues will be addressed in the future. The author may wish to include the following issues in that discussion: (1) providing for the authority and training of correctional officers in privatized facilities; (2) additional indemnification and liability issues; (3) additional changes or cross-reference in law necessary to ensure that the private facilities may operate in the same SB 2156 (Lewis) Page v manner as public facilities; (4) any additional changes suggested by the Florida experience? ***************