2023 Tennessee Code › Title 41 - CORRECTIONAL INSTITUTIONS AND INMATES (§§ 41-1-101 — 41-51-302) › Chapter 24 - PRIVATE PRISON CONTRACTING ACT OF 1986 (§§ 41-24-101 — 41-24-119) › Section 41-24-104 - Review and approval of contract proposals - Price and cost adjustments - Cancellations

(a)
Any contract for correctional services as defined in §
41-24-102(2)(F)
shall be entered into only after each of the following requirements and/or conditions are met:
(1)
Any request for proposals, any original contract, any contract renewal and any price or cost adjustment or any other amendment to any contract shall first be approved by the following:
(A)
The state building commission;
(B)
The attorney general and reporter; and
(C)
The commissioner;
(2)
(A)
The fiscal review committee shall review any request for proposals, any original contract and any proposed contract renewal and may submit comments to the authorities listed in subdivision (a)(1). Any comment shall be submitted to such authorities no later than thirty (30) days after receipt of the request for proposals, original contract or proposed contract renewal by the committees. The authorities listed in subdivision (a)(1) shall withhold their final action until such thirty-day period has ended or until they have received the committee's comments, whichever first occurs;
(B)
Any request for proposals, any original contract and any proposed contract renewal shall be submitted by the department of correction to the state and local government committee of the senate and the state government committee of the house of representatives. The committees may review and submit comments to the authorities listed in subdivision (a)(1). Any comment shall be submitted to those authorities no later than thirty (30) days after receipt of the request for proposals, original contract or proposed contract renewal by the committees. The authorities listed in subdivision (a)(1) shall withhold their final action until such thirty-day period has ended or until they have received the committee's comments, whichever first occurs;
(3)
To be considered for an award of a contract, the proposer must demonstrate to the satisfaction of each of the officials set forth in subdivision (a)(1) that it has:
(A)
The qualifications, operations and management experience and experienced personnel necessary to carry out the terms of the contract;
(B)
The ability to comply with applicable correctional standards and specific court orders, if required; and
(C)
Demonstrated history of successful operation and management of other correctional facilities; and
(4)
Proposer must agree that the state may cancel the contract at any time after the first year of operation, without penalty to the state, upon giving ninety (90) days' written notice.
(b)
(1)
Any contract pursuant to this section may provide for annual contract price or cost adjustments; provided, that any adjustments may be made only once each year effective upon the anniversary of the effective date of the contract. If any adjustment is made pursuant to terms of the contract, it shall be applied to total payments made to the contractor for the previous contract year and shall not exceed the percent of change in the average consumer price index (all items-city average), which is published by the United States department of labor, bureau of labor statistics, between that figure for the latest calendar year and the next previous calendar year.
(2)
Any price or cost adjustments to any contract different than those authorized by subdivision (b)(1) may be made only if the general assembly specifically authorizes those adjustments and appropriates funds for that purpose, if required.
(c)
(1)
No award of any contract shall be made unless an acceptable proposal is received pursuant to any request for proposal. An "acceptable" proposal means a proposal that meets all the requirements or conditions or both set forth in this chapter and meets all the requirements in the request for proposal.
(2)
No proposal shall be accepted unless:
(A)
The proposal offers a level and quality of services that are at least equal to those that would be provided by the state in accordance with §
41-24-105
; and
(B)
The cost of the private operation and the cost to the state to monitor the private operation, shall be at least five percent (5%) less than the state's cost for essentially the same services in accordance with §
41-24-105
as determined by the department of correction and reviewed by the office of the comptroller.
(3)
Should the state be required to assume the operation of any facility contracted under this chapter, preference in state employment shall be given to persons who are employees of the contractor at the time of the state's assumption of operation of that facility.
(4)
Any preference in employment must be in compliance with title 8, chapter 30, and §
41-1-116
, and performance of duties as an employee of the contractor must have been satisfactory.
Amended by 2021 Tenn. Acts, ch. 64, s 63, eff. 3/29/2021.
Amended by 2019 Tenn. Acts, ch. 345, s 73, eff. 5/10/2019.
Amended by 2013 Tenn. Acts, ch. 236, s 65, eff. 4/19/2013.
Amended by 2013 Tenn. Acts, ch. 165, s 1, eff. 4/16/2013.
Acts 1986, ch. 932, § 4; 1991, ch. 176, § 2; 2001, ch. 132, §§4 - 6; 2011 , ch. 410, § 2(m).