House Bill 439

AN ACT TO AMEND SECTION 47-5-109.1, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT ANY INTERESTED THIRD PARTY WHO SUBMITS A PROPOSAL TO ADMINISTER INMATE CANTEEN SERVICES FOR THE DEPARTMENT OF CORRECTIONS MUST DESCRIBE FULLY HOW SUCH INMATE CANTEEN SERVICES ARE TO BE PRICED IN ORDER TO HELP ENSURE THAT PRICES CHARGED BY THE CANTEEN ARE REASONABLE AND FAIR TO THOSE PURCHASING THROUGH THE CANTEEN SYSTEM; TO PROVIDE THAT ANY ADJUSTMENTS IN THE PRICING OF INMATE CANTEEN SERVICES MUST EITHER BE APPROVED OR DISAPPROVED BY THE COMMISSIONER OF CORRECTIONS; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 47-5-109.1, Mississippi Code of 1972, is amended as follows:

47-5-109.1. (1) The Department of Corrections shall contract for the administration of inmate canteen services to a third party. Such contract shall comply with the procedures set forth in this section:

(a) The Department of Corrections shall cause to be prepared a request for proposals. This request for proposals shall be prepared for distribution to any interested third party. Notice of the department's intention to seek proposals shall be published in a newspaper of general circulation at least one time per week for three (3) weeks before closing the period for interested parties to respond. Additional forms of notice may also be used. The newspaper notice shall inform the interested parties of the service to be contracted, existence of a request for proposals, how it can be obtained, when a proposal must be submitted, and to whom the proposal must be submitted. All requests for proposals shall describe clearly what service is to be contracted, and shall fully explain the criteria upon which an evaluation of proposals shall be based. The criteria to be used for evaluations shall, at a minimum, include:

(i) Require interested third parties to describe their qualifications to provide inmate canteen services to correctional facilities in widely dispersed geographical regions; and

(ii) Describe the department's expectations with regard to commissions, pricing and quality assurance for inmate canteen services.

In regard to pricing for inmate canteen services, as prescribed under subparagraph (ii) of this paragraph, the request for proposals shall require any interested third party to describe fully their proposed sampling methods for setting prices at inmate canteen services to ensure that prices charged by the canteens are reasonable and fair to those purchasing through the canteen system. If the Department of Corrections allows a comparison of convenience store prices to be the basis for selecting canteen prices, the request for proposals shall require interested third parties to specify in their proposals the proposed locations, types and number of stores and products to be sampled in order to ensure that sufficient data is collected to determine the variation and central tendency of product prices. In establishing individual product prices, the administrator of inmate canteen services shall select the measure of central tendency that best fits the distribution of sample price data. Should the administrator of inmate canteen services determine that prices should be adjusted, the request for proposals shall require any interested third parties to keep all records pertaining to requested price adjustments, including supporting sample data and calculation of central tendency and corresponding documentation of the commissioner's action, of either approval or disapproval, on the request for the price adjustment. Any approved price adjustment that is an increase for inmate canteen services shall be submitted by the commissioner to the PEER Committee and the Inmate Welfare Fund Committee thirty (30) days before such adjustment is implemented.

(b) All proposals submitted by interested parties shall be evaluated by the Inmate Welfare Fund Committee, as established in Section 47-5-158, which shall apply the same criteria to all proposals when conducting an evaluation. The results and recommendations of the evaluation shall be presented to the Department of Corrections for review. All evaluations presented to the department shall be retained by the department for at least three (3) years. The department may accept or reject any recommendation of the committee, or it may conduct further inquiry into the proposals. Any further inquiry shall be clearly documented and all methods and recommendations shall be retained by the department and shall spread upon its minutes its choice of the administrator for inmate canteen services and its reasons for making the choice.

(c) (i) The department shall be responsible for preparing a contract that shall be in accordance with all provisions of this section and all other provisions of law. The contract shall also include a requirement that the contractor shall consent to an evaluation of its performance. Such evaluation shall occur after the first six (6) months of the contract, and shall be reviewed at times the department determines to be necessary. The contract shall clearly describe the standards upon which the contractor shall be evaluated.

(ii) The PEER Committee, at the request of the House or Senate Corrections Committee and with funds specifically appropriated by the Legislature for such purpose, shall contract with an accounting firm or with other professionals to conduct a compliance audit of the services provided by the contractor. Such audit shall review the compliance with the performance standards required for inclusion in the administrator's contract. Such audit shall be delivered to the Legislature no later than January 1.

(2) Contracts for the administration of inmate canteen services shall commence at the beginning of the calendar year and shall end on the last day of a calendar year. This shall not apply to contracts provided for in subsection (3) of this section.

(3) If the Department of Corrections determines that it is necessary to not renew the contract of an administrator, or finds it necessary to terminate a contract with or without cause as provided for in the contract of the administrator of inmate canteen services, the department is authorized to select an administrator for inmate canteen services without complying with the bid requirements in subsections (1) and (2) of this section. Such contracts shall be for the balance of the calendar year in which the nonrenewal or termination occurred, and may be for an additional calendar year if the department determines that the best interests of the inmates are served by such. Any contract negotiated on an interim basis shall include a detailed transition plan which shall ensure the orderly transfer of responsibilities between contractors.

(4) Except for contracts executed under the authority of subsection (3) of this section, the department shall select administrators of inmate canteen services at least six (6) months before the expiration of the current administrator's contract. The period between the selection of the new administrator of inmate canteen services and the effective date of the new contract shall be known as the transition period. The Department of Corrections shall furnish the Legislature and Governor with copies of all transition plans and keep them informed of progression on such plans.

SECTION 2. This act shall take effect and be in force from and after July 1, 2018.