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By the Center for
Media and Democracy
www.prwatch.org

D I D Y O U K N O W ? Corporations VOTED to adopt this. Through ALEC, global companies
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work as “equals” in “unison” with politicians to write laws to govern your life. Big
ABOUT
MEMBERS
“ALEC”
has long
been aEVENTS & MEETINGS MODEL LEGISLATION TASK FORCES ALEC INITIATIVES PUBLICATIONS
Business has “a VOICE and a VOTE,” according to newly exposed documents. DO YOU?
secretive
NEWS collaboration
Did you know the NRA--the
between Big Business and
Home
Model
Legislation
Public
Safety
and
Elections
National Rifle Association--was
“conservative”
politicians.
Model Legislation
Behind
closed
doors,
they
the corporate co-chair in 2011?
Civil Justice
ghostwrite “model” bills to
Commerce,
Targeted Contracting for Certain Correctional Facilities and
be introduced
inInsurance,
state
and Economic
Services Act
capitols across the country.
Development
This agenda--underwritten
by global
corporations-Education
includes major tax
Energy, Environment,
loopholes
for big industries
Summary:
and Agriculture
and the super rich,
proposals
to Relations
offshore U.S.
Federal
jobs and gut minimum
This Act provides the state agency charged with operating the prison system the
and Human
wage,Health
and efforts
to
authority to contract for facilities and services with the private sector or a political
Services
subdivision. Includes contract requirements relating to qualifications and standards, and
weaken public health,
limitations on authority over inmates.
safety,International
and environmental
Relations
protections. Although many
Public Safety and
of these
bills have become
Elections
law, until now, their origin
has been
largely
unknown.
Tax and
Fiscal
Policy
Model Legislation:
With ALEC EXPOSED, the
Telecommunications
Centerand
forInformation
Media and
Democracy
hopes more
Technology
CHAPTER ____. CONTRACTS FOR CORRECTIONAL FACILITIES AND SERVICES
Americans will study the
bills to understand the
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depth and breadth of how
SUBCHAPTER A. GENERAL PROVISIONS
Text-Only
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big corporations
are
changing the
legal
rules
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and undermining democracy
Sec. ____. In this chapter:
across the nation.

ALEC’s’Corporate Board

(1) "Board" means the governing body with oversight authority over the state agency
charged with the day-to-day operation of the state's prison system.

--in recent past or present

• AT&T Services, Inc.
• centerpoint360
• UPS
• Bayer Corporation
• GlaxoSmithKline
• Energy Future Holdings
• Johnson & Johnson
• Coca-Cola Company
• PhRMA
• Kraft Foods, Inc.
• Coca-Cola Co.
• Pfizer Inc.
• Reed Elsevier, Inc.
• DIAGEO
• Peabody Energy
• Intuit, Inc.
• Koch Industries, Inc.
• ExxonMobil
• Verizon
• Reynolds American Inc.
• Wal-Mart Stores, Inc.
• Salt River Project
• Altria Client Services, Inc.
• American Bail Coalition
• State Farm Insurance
For more on these corporations,
search at www.SourceWatch.org.

(2) "Department" means the state agency charged with the day-to-day operation of the
state's prison system.

SUBCHAPTER B. CONTRACTS WITH PRIVATE VENDORS AND POLITICAL SUBDIVISIONS FOR
CORRECTIONAL FACILITIES AND SERVICES

Sec. ____. AUTHORITY TO CONTRACT FOR FACILITIES.

(1) The department may contract with a private vendor or with a political subdivision of
the state for the financing, construction, operation, maintenance, or management of a
secure correctional facility.

(2) A facility operated, maintained, and managed under this chapter by a private vendor
or political subdivision must:

(A) exceed or comply with federal constitutional standards and applicable court orders;
and

(B) receive and retain, as an individual facility, accreditation from the American

Correctional Association.

Exposed

By the Center for
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(3) A facility authorized by this subchapter may be located on private land or on land
owned by the state or a political subdivision. The board may accept land donated for that
purpose.

(4) The department shall give priority to entering into contracts under this subchapter
that will provide the department with:

(A) for the general inmate population, secure regionally based correctional facilities
designed to successfully reintegrate inmates into society through preparole, prerelease,
work release, and prison industries programs; and

(B) for the following categories of inmates with special needs, housing and appropriate
programmatic services:

(i) inmates with a history of substance abuse;

(ii) inmates with a history of mental illness or mental retardation;

(iii) inmates who are illegal aliens;

(iv) geriatric inmates;

(v) inmates who would be required to register as a sex offender under Chapter 62, Code
of Criminal Procedure, if not confined; and

(vi) other inmate populations with special needs for whom providing housing or
appropriate programmatic services would benefit the state.

Sec. ____. AUTHORITY TO CONTRACT FOR SERVICES.

(1) The department shall request proposals from private vendors or political subdivisions
for contracts to provide support services such as logistics, health care, transportation,
food service, information systems and management, technology acquisition,
telecommunications, education, employee and inmate job training, human resources,
continuing education, facility construction and repair maintenance, materials handling,
management processes, efficient operations, productivity of manufacturing, cost tracking
and reduction, and any other process performed within the department.

(2) If the department on analysis of the proposals determines that a service could be
provided by a private vendor or political subdivision under a contract with a cost savings,
increase in productivity, or reduction in recidivism, the department shall enter into one or
more contracts for those services in the manner provided by law.

Sec. ____. INMATE CUSTODY STATUS.

An inmate confined in a facility authorized by this subchapter remains in the legal
custody of the department.

Sec. ____. CONTRACT PROPOSALS; QUALIFICATIONS AND STANDARDS.

(1) The department may not award a contract under this subchapter unless the
department 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).

(2) A person proposing to enter into a contract with the department under this

subchapter must demonstrate:

Exposed

By the Center for
Media and Democracy
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(A) the qualifications and the operations and management experience to carry out the
terms of the contract; and

(B) the ability to comply with applicable standards of the American Correctional
Association and with specific court orders.

(3) In addition to meeting the requirements specified in the request for proposals, a
proposal must:

(A) if applicable, provide for regular on-site monitoring by the department;

(B) acknowledge that payment by the state is subject to the availability of appropriations;

(C) provide for payment of a maximum amount per biennium;

(D) if applicable, 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;

(E) permit the state to terminate the contract for cause, including as cause the failure of
the private vendor or political subdivision to meet the conditions required by this
subchapter and other conditions required by the contract;

(F) provide that cost adjustments may be made only once each fiscal year, to take effect
at the beginning of the next fiscal year;

(G) if the proposal includes construction of a facility, contain a performance bond
approved by the department that is adequate and appropriate for the proposed contract;

(H) provide for assumption of liability by the private vendor or political subdivision for all
claims arising from the services performed under the contract by the private vendor or
political subdivision;

(I) provide for an adequate plan of insurance for the private vendor or political subdivision
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 political subdivision;

(J) 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 political
subdivision and to protect the state from actions by a third party against the private
vendor or political subdivision and its officers, guards, employees, and agents as a result
of the contract;

(K) 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 political subdivision to perform
its duties under the contract;

(L) contain comprehensive standards for conditions of confinement; and

(M) if applicable, provide that correctional officers employed by the state at a facility are
offered employment opportunities to perform the same jobs at the facility for the private
vendor or political subdivision, without a reduction in wages or benefits.

(4) The department 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 political subdivision, indirect costs properly allocable
to either the state or the private vendor or political subdivision, and continuing costs to

the state directly associated with the contract.

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By the Center for
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Sec. ____. LIMITATION ON AUTHORITY OVER INMATES.

A private vendor or political subdivision 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.

Sec. ____. 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 political subdivision. 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.

Sec. ____. ENTERPRISE EFFORTS IN CONTRACT FACILITIES.

(1) To the greatest extent possible, private vendors and political subdivisions entering
into contracts under this subchapter shall generate revenue through participation in
inmate industry and agriculture programs and through the implementation of
telecommunications technology and commissary programs and similar programs.

(2) In developing revenue generating strategies, the private vendor or political
subdivision entering into the contract, to ensure good order and public safety, shall
develop written security policies consistent with existing corrections practices in the
federal prison system, this state, or other states.

(3) The department shall deduct from amounts owed private vendors or political
subdivisions under contracts the profits generated from programs described by
Subsection (a). For purposes of this subsection, deductions from a participant's wages
authorized by law and paid to a private vendor or political subdivision entering into a
contract with the department are considered profits.

Adopted by ALEC's Criminal Justice Task Force at the Annual Meeting July 29, 2004.
Approved by full ALEC Board of Directors August, 2004.

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Center for Media
and Democracy's
quick summary:

This model bill allows state agencies to contract out incarceration and prison services, benefitting the private prison
industry (such as the Corrections Corporation of America, a member of the Executive Committee of ALEC's Public
Safety & Elections Task Force).