2005 Texas Government Code CHAPTER 495. CONTRACTS FOR CORRECTIONAL FACILITIES AND SERVICES

GOVERNMENT CODE

CHAPTER 495. CONTRACTS FOR CORRECTIONAL FACILITIES AND SERVICES

SUBCHAPTER A. CONTRACTS WITH PRIVATE VENDORS AND COMMISSIONERS 
COURTS


	§ 495.001. AUTHORITY TO CONTRACT.  (a) The board may 
contract with a private vendor or with the commissioners court of a 
county for the financing, construction, operation, maintenance, or 
management of a secure correctional facility.
	(b)  A facility operated, maintained, and managed under this 
subchapter by a private vendor or county must:
		(1)  hold not more than an average daily population of 
1,000 inmates;       
		(2)  comply with federal constitutional standards and 
applicable court orders;  and
		(3)  receive and retain, as an individual facility, 
accreditation from the American Correctional Association.
	(c)  A facility authorized by this subchapter may be located 
on private land or on land owned by the state or a political 
subdivision of the state.  The board may accept land donated for 
that purpose.
	(d)  The population requirements imposed by Subsection 
(b)(1) do not apply to a facility that is under construction or 
completed before April 14, 1987.
	(e)  The board shall give priority to entering contracts 
under this subchapter that will provide the institutional division 
with secure regionally based correctional facilities designed to 
successfully reintegrate inmates into society through preparole, 
prerelease, work release, and prison industries programs.
	(f)  Notwithstanding Subsection (b)(1), a facility that 
before December 1, 1991, was operated, maintained, and managed 
under this subchapter by a private vendor or county may not hold 
more than an average daily population of 500 inmates, unless the 
commissioners court of the county in which the facility is located 
expresses in a resolution on the subject that the limit on 
population imposed by this subsection should not apply to the 
facility.

Added by Acts 1989, 71st Leg., ch. 212, § 2.01, eff. Sept. 1, 
1989.  Renumbered from V.T.C.A., Government Code § 494.001 and 
amended by Acts 1991, 72nd Leg., ch. 16, § 10.01(a), eff. Aug. 
26, 1991.  Amended by Acts 1991, 72nd Leg., 2nd C.S., ch. 10, § 
2.01, eff. Dec. 1, 1991.


	§ 495.002. INMATES.  The institutional division may 
confine only minimum or medium security inmates in a facility 
authorized by this subchapter.  An inmate confined in a facility 
authorized by this subchapter remains in the legal custody of the 
institutional division.

Added by Acts 1989, 71st Leg., ch. 212, § 2.01, eff. Sept. 1, 
1989.  Renumbered from V.T.C.A., Government Code § 494.002 and 
amended by Acts 1991, 72nd Leg., ch. 16, § 10.01(a), eff. Aug. 
26, 1991.


	§ 495.003. CONTRACT PROPOSALS;  QUALIFICATIONS AND 
STANDARDS.  (a) The board may not award a contract under this 
subchapter unless the board requests proposals and receives a 
proposal that meets or exceeds, in addition to requirements 
specified in the request for proposals, the requirements specified 
in Subsections (b), (c), and (d).
	(b)  A person proposing to enter a contract with the board 
under this subchapter must demonstrate:
		(1)  the qualifications and the operations and 
management experience to carry out the terms of the contract;  and
		(2)  the ability to comply with the standards of the 
American Correctional Association and with specific court orders.
	(c)  In addition to meeting the requirements specified in the 
requests for proposals, a proposal must:
		(1)  provide for regular, on-site monitoring by the 
institutional division; 
		(2)  acknowledge that payment by the state is subject 
to the availability of appropriations;
		(3)  provide for payment of a maximum amount per 
biennium;                  
		(4)  offer a level and quality of programs at least 
equal to those provided by state-operated facilities that house 
similar types of inmates and at a cost that provides the state with 
a savings of not less than 10 percent of the cost of housing inmates 
in similar facilities and providing similar programs to those types 
of inmates in state-operated facilities;
		(5)  permit the state to terminate the contract for 
cause, including as cause the failure of the private vendor or 
county to meet the conditions required by this subchapter and other 
conditions required by the contract;
		(6)  provide that cost adjustments may be made only 
once each fiscal year, to take effect at the beginning of the next 
fiscal year;
		(7)  have an initial contract term of not more than 
three years, with an option to renew for additional periods of two 
years;
		(8)  if the proposal includes construction of a 
facility, contain a performance bond approved by the board that is 
adequate and appropriate for the proposed contract;
		(9)  provide for assumption of liability by the private 
vendor or county for all claims arising from the services performed 
under the contract by the private vendor or county;
		(10)  provide for an adequate plan of insurance for the 
private vendor or county and its officers, guards, employees, and 
agents against all claims, including claims based on violations of 
civil rights arising from the services performed under the contract 
by the private vendor or county;
		(11)  provide for an adequate plan of insurance to 
protect the state against all claims arising from the services 
performed under the contract by the private vendor or county and to 
protect the state from actions by a third party against the private 
vendor or county, its officers, guards, employees, and agents as a 
result of the contract;
		(12)  provide plans for the purchase and assumption of 
operations by the state in the event of the bankruptcy of the 
private vendor or inability of the county to perform its duties 
under the contract;  and
		(13)  contain comprehensive standards for conditions 
of confinement.        
	(d)  Before the commissioners court of a county proposes to 
enter into a contract under this subchapter, the commissioners 
court of the county must receive the written approval of the sheriff 
of the county. A sheriff may not unreasonably withhold written 
approval under this subsection.  A correctional facility provided 
by a county under this subchapter is subject to the same standards 
and requirements as a correctional facility provided by a private 
vendor.
	(e)  The Legislative Budget Board determines the costs and 
cost savings under Subsection (c)(4) and may consider any relevant 
factor, including additional costs to the state for providing the 
same service as a private vendor or county, indirect costs properly 
allocable to either the state or the private vendor or county, and 
continuing costs to the state directly associated with the 
contract.

Added by Acts 1989, 71st Leg., ch. 212, § 2.01, eff. Sept. 1, 
1989.  Renumbered from V.T.C.A., Government Code § 494.003 and 
amended by Acts 1991, 72nd Leg., ch. 16, § 10.01(a), eff. Aug. 
26, 1991.  Amended by Acts 1991, 72nd Leg., 2nd C.S., ch. 10, § 
2.03, eff. Dec. 1, 1991.


	§ 495.004. LIMITATION ON AUTHORITY OVER INMATES.  A 
private vendor or county operating under a contract authorized by 
this subchapter may not:
		(1)  compute inmate release and parole eligibility 
dates;                   
		(2)  award good conduct time;                                                 
		(3)  approve an inmate for work, medical, or temporary 
furlough or for preparole transfer;  or
		(4)  classify an inmate or place an inmate in less 
restrictive custody than the custody ordered by the institutional 
division.

Added by Acts 1989, 71st Leg., ch. 212, § 2.01, eff. Sept. 1, 
1989.  Renumbered from V.T.C.A., Government Code § 494.004 and 
amended by Acts 1991, 72nd Leg., ch. 16, § 10.01(a), eff. Aug. 
26, 1991.


	§ 495.005. CIVIL LIABILITY.  A private vendor operating 
under a contract authorized by this subchapter may not claim 
sovereign immunity in a suit arising from the services performed 
under the contract by the private vendor or county.  This section 
does not deprive the private vendor or the state of the benefit of 
any law limiting exposure to liability, setting a limit on damages, 
or establishing a defense to liability.

Added by Acts 1989, 71st Leg., ch. 212, § 2.01 eff. Sept. 1, 
1989.  Renumbered from V.T.C.A., Government Code § 494.005 by 
Acts 1991, 72nd Leg., ch. 16, § 10.01(a), eff. Aug. 26, 1991.


	§ 495.006. CONVERSION OF FACILITY.  The board may not 
convert a facility into a correctional facility operated by a 
private vendor or by a county if, before April 14, 1987, the 
facility is:
		(1)  operated as a correctional facility by the board;  
or                  
		(2)  being constructed by the board for use as a 
correctional facility.     

Added by Acts 1989, 71st Leg., ch. 212, § 2.01, eff. Sept. 1, 
1989.  Renumbered from V.T.C.A., Government Code § 494.006 by 
Acts 1991, 72nd Leg., ch. 16, § 10.01(a), eff. Aug. 26, 1991.


	§ 495.007. LIMITATION.  The board may not enter into 
contracts under this subchapter for more than 4,580 beds.

Added by Acts 1991, 72nd Leg., 2nd C.S., ch. 10, § 2.02, eff. 
Dec. 1, 1991.  Amended by Acts 1993, 73rd Leg., ch. 238, § 6.01, 
eff. May 22, 1993;  Acts 1999, 76th Leg., ch. 1188, § 1.13, eff. 
Sept. 1, 1999.


	§ 495.008. AUDITING AND MONITORING CONTRACTS.  (a) The 
department shall develop a comprehensive methodology for enhanced 
auditing and monitoring of all facilities operated under contract 
with the department that house inmates of the department and 
releasees under the supervision of the department.  To achieve this 
objective, the department shall first review existing auditing, 
monitoring, and oversight capabilities of the department to 
determine what further procedures and resources are necessary to 
achieve this goal.
	(b)  The department shall ensure that all new and renewed 
contracts described by Subsection (a) include:
		(1)  a provision that the department or a designee of 
the department may conduct periodic contract compliance reviews, 
without advance notice, to monitor vendor performance;
		(2)  minimum acceptable standards of performance 
prescribed by the department that include provisions regarding the 
health, safety, and welfare of inmates and releasees;
		(3)  a provision that if a review determines that a 
vendor is not in compliance with the contract, the department may 
require that the vendor's per diem compensation be withheld until 
the vendor meets contract requirements or the vendor is replaced;
		(4)  a provision requiring a vendor not in compliance 
with the contract to implement a plan of corrective action approved 
by the department;  and
		(5)  a provision under which the state is indemnified 
for costs of litigation and for any damages in lawsuits alleging 
that the health, safety, or welfare of an inmate or releasee in a 
contract facility is not protected.
	(c)  The department shall complete at least one enhanced 
audit for each facility described by Subsection (a), without regard 
to whether the facility is operated by a public or private vendor.  
The enhanced audit must include an enhanced contract compliance 
review of any vendors hired by a community supervision and 
corrections department to operate a facility.
	(d)  The department, in conjunction with an advisory 
committee composed of state officials and private officials from 
within the industry, shall adopt rules to implement the 
requirements of this section.
	(e)  The department shall develop an appeals process, 
incorporated by reference into all new and renewed contracts, under 
which a vendor may appeal any imposed sanction under the contract, 
with the appeals process including the right to a formal hearing and 
a right to a final determination by the board.
	(f)  Expired.                                                                  

Added by Acts 2001, 77th Leg., ch. 474, § 5, eff. Sept. 1, 2001.           

SUBCHAPTER B. MISCELLANEOUS CONTRACTS FOR CORRECTIONAL FACILITIES 
AND SERVICES


	§ 495.021. LEASE-PURCHASE, INSTALLMENT CONTRACTS.  (a) 
The board may contract with the commissioners court of a county to 
use, lease-purchase, purchase on an installment contract, or 
acquire in any other manner a secure correctional facility financed 
and constructed under the authority of the county.  The contract 
must be subject to specific appropriative authority in the General 
Appropriations Act, and the facility must be managed by the 
institutional division.
	(b)  A contract under this section is subject to review and 
approval by the Bond Review Board under the provisions of Chapter 
1231 without regard to the amount or the duration of the contract.

Added by Acts 1989, 71st Leg., ch. 212, § 2.01, eff. Sept. 1, 
1989.  Renumbered from V.T.C.A., Government Code § 494.021 and 
amended by Acts 1991, 72nd Leg., ch. 16, § 10.01(a), eff. Aug. 
26, 1991.  Amended by Acts 2001, 77th Leg., ch. 1420, § 8.237, 
eff. Sept. 1, 2001.


	§ 495.022. CONTRACTS WITH FEDERAL GOVERNMENT.  (a) The 
board may contract with the federal government for the lease of any 
military base or other federal facility that is not being used by 
the federal government.  
	(b)  A facility leased under this section may be used by the 
institutional division for the purpose of housing inmates 
determined by the division to be minimum security inmates.
	(c)  The board may not enter into a contract under this 
section unless funds have been appropriated specifically for the 
purpose of making payments on contracts authorized under this 
section.
	(d)  The board shall attempt to enter into contracts 
authorized by this section that will provide the institutional 
division with facilities located in the various parts of the state.
	(e)  A facility leased under this section by the board must 
comply with federal constitutional standards and applicable court 
orders.

Added by Acts 1989, 71st Leg., ch. 212, § 2.01, eff. Sept. 1, 
1989.  Renumbered from V.T.C.A., Government Code § 494.022 and 
amended by Acts 1991, 72nd Leg., ch. 16, § 10.01(a), eff. Aug. 
26, 1991.


	§ 495.023. CONTRACTS FOR DIAGNOSTIC AND EVALUATION 
SERVICES.  (a) The institutional division shall request proposals 
and may award one contract to a private vendor or community 
supervision and corrections department to screen and diagnose, 
either before or after adjudications of guilt, persons who may be 
transferred to the division.  The term of the contract may not be 
for more than two years.  The institutional division shall award the 
contract if the division determines that:
		(1)  the person proposing to enter into the contract 
can provide psychiatric, psychological, or social evaluations of 
persons who are to be transferred to the division;
		(2)  the services provided will reduce the chances of 
misdiagnosis of mentally ill and mentally retarded persons who are 
to be transferred to the division, expedite the diagnostic process, 
and offer savings to the division;
		(3)  the quality of services offered equals or exceeds 
the quality of the same services provided by the division;  and
		(4)  the state will assume no additional liability by 
entering into a contract for the services.
	(b)  If the institutional division enters into the contract 
and during or at the end of the contract period determines that the 
diagnostic services performed under the contract are of a 
sufficient quality and are cost effective, the division shall 
submit requests for additional proposals for contracts and award 
one or more contracts in the same manner as provided by Subsection 
(a).

Added by Acts 1989, 71st Leg., ch. 212, § 2.01, eff. Sept. 1, 
1989.  Renumbered from V.T.C.A., Government Code § 494.023 and 
amended by Acts 1991, 72nd Leg., ch. 16, § 10.01(a), eff. Aug. 
26, 1991.


	§ 495.024. RELEASE OF OUT-OF-STATE INMATES.  A county or 
a municipality or a private vendor operating a correctional 
facility under a contract with a county under Subchapter F, Chapter 
351, Local Government Code, or a municipality under Subchapter E, 
Chapter 361, Local Government Code, that enters into a contract 
with any entity to house in this state inmates convicted of offenses 
committed against the laws of another state of the United States 
must require as a condition of the contract that each inmate to be 
released from custody must be released in the sending state.

Added by Acts 1997, 75th Leg., ch. 175, § 1, eff. May 21, 1997.