Senate Bill 2882

AN ACT TO AMEND SECTION 47-5-1211, MISSISSIPPI CODE OF 1972, TO CHANGE THE METHOD OF DETERMINING COST SAVINGS FOR PURPOSES OF ENTERING CONTRACTS FOR PRIVATE CORRECTIONAL FACILITIES OR SERVICES; TO AMEND SECTION 47-5-1213, MISSISSIPPI CODE OF 1972, TO INCREASE THE TERM OF CONTRACTS FOR THE OPERATION OF A CORRECTIONAL FACILITY BY A PRIVATE ENTITY FROM FIVE TO 20 YEARS; TO REMOVE THE OPTION TO RENEW SUCH CONTRACTS; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 47-5-1211, Mississippi Code of 1972, is amended as follows:

47-5-1211. (1) A contract for private correctional facilities or services shall not be entered into unless the contractor has demonstrated that it has:

(a) The qualifications, experience and management personnel necessary to carry out the terms of the contract.

(b) The ability to expedite the siting, design and construction of correctional facilities.

(d) Demonstrated history of successful operation and management of other correctional facilities.

(2) A facility shall at all times comply with all federal and state laws, and all applicable court orders.

(3) (a) No contract for private incarceration shall be entered into unless the cost of the private operation, including the state's cost for monitoring the private operation, offers a cost savings of at least ten percent (10%), which shall be calculated over the term of the contract entered into, to the Department of Corrections for at least the same level and quality of service offered by the Department of Corrections. The cost savings analysis may take into account scheduled rental payments and operating payments to be paid over the term of the contract.

(b) Beginning in 2012, and every two (2) years thereafter, the Joint Legislative Committee on Performance Evaluation and Expenditure Review (PEER) shall contract with a certified public accounting firm to establish a state inmate cost per day using financial information of the Department of Corrections for the most recently completed fiscal year. The state inmate cost per day shall be certified as required by this section. The certified cost established at the time a contract is entered into shall be used as the basis for measuring the validity of the ten percent (10%) savings of the contractor costs calculated over the term of the contract.

(c) Prior to engaging a certified public accountant, the PEER Committee, in conjunction with the Department of Corrections, shall develop a current cost-based model, which may take into account scheduled rental payments and operating payments to be paid over the term of the contract, that will serve as a basis for the report produced as authorized by this section.

(4) The rates and benefits for correctional services shall be negotiated based upon American Correction Association standards, state law and court orders.

SECTION 2. Section 47-5-1213, Mississippi Code of 1972, is amended as follows:

47-5-1213. The * * * ~~initial~~ contract for the operation, maintenance, construction, purchase, or lease of a facility or for incarceration of inmates therein * * * ~~shall~~ may be for a period of not more than * * * twenty (20) years. * * * Contracts for the lease of a facility shall provide that the contractor shall convey the facility to the state, at the option of the state, for a total consideration of One Dollar ($1.00). Any contract for housing shall be subject to annual appropriation by the Legislature.

SECTION 3. This act shall take effect and be in force from and after July 1, 2018.