A. The department and local governmental subdivisions are hereby authorized to enter into contracts with prison contractors for the financing, acquiring, designing, leasing, constructing, and operating of facilities. Any contract by the department shall reflect the recommended plan for addressing the shortage of housing which was jointly approved by the House Committee on Administration of Criminal Justice and Senate Committee on Judiciary B pursuant to the provisions of La. Rev. Stat. 15:834.2.

            B. Contracts entered into under the terms of this Chapter shall be negotiated with the firm found most qualified. However, no contract for correctional services may be entered into unless the private contractor demonstrates that it has:

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

            (2) The financial strength and ability to provide indemnification for liability arising from large prison management projects.

            (3) Evidence of past performance of similar contracts.

            (4) The ability to comply with applicable court orders and correctional standards.

            C.(1) Contracts awarded under the provisions of this Chapter, for the lease or use of public lands or buildings for use in the operation of state or local facilities, may be entered into for a period not to exceed twenty years subject to the requirement of annual appropriation of funds.

            (2) Contracts awarded under the provisions of this Chapter for the provision of correctional or geriatric services may be entered into for successive periods not to exceed five years each, provided however, that such contracts which involve expenditures for capital improvements by the contractor may be awarded for a term up to ten years, all subject to the requirement of annual appropriation of funds.

            D. Contracts awarded under the provisions of this Chapter shall, at a minimum, comply with the following:

            (1) Provide for internal and perimeter security to protect the public, employees, and inmates.

            (2) Provide sentenced inmates with work or training opportunities or both while incarcerated; however, the contractor shall not benefit financially from the labor of inmates, nor shall any inmate ever be placed in a position of authority over another inmate. Any profits realized from the operation of a prison enterprise program shall revert to the department or appropriate governmental authority. Contractors may work with the Prison Enterprises Division of the department in setting up work and training programs. Contractors shall be authorized to purchase services and commodities from the prison enterprises division of the department.

            (3) Impose discipline on inmates only in accordance with applicable rules and procedures.

            (4) Provide proper food, clothing, housing, and medical care, including geriatric care for inmates.

            (5) Provide that employees of a private prison contractor shall be authorized to carry and use firearms in the course of their employment only after completing an approved training course in the use of firearms and being certified by the secretary, in accordance with rules and regulations promulgated by the secretary.

            (6) Require that a private prison contractor under contract to the department shall adhere to policies and procedures of the department as they pertain to the use of force.

            E. No contract for correctional services shall be entered into unless the following requirements are met:

            (1) The contractor provides audited financial statements for the previous five years or for each of the years the contractor has been in operation, if less than five years, and provides other financial information as requested.

            (2) The contractor shall agree to hold harmless the state, its agencies, political subdivisions, and the employees and contractors of the state, its agencies and political subdivisions for any claim or cause of action which arises from any act or omission by the contractor or any of the contractor’s employees or subcontractors.

            (3) The contractor shall agree to provide insurance, or equal bonding, and proof thereof for the indemnification of the state or its agencies and political subdivisions and the employees and contractors of the state and its agencies and political subdivisions for any claim or cause of action which arises from any act or omission by the contractor or any of the contractor’s employees or subcontractors. Nothing herein is intended to deprive a prison contractor or the state and its agencies and political subdivisions of the benefits of any law limiting exposure to liability or setting a limit on damages.

            F. No contract shall be entered into pursuant to this Chapter unless the contract is approved by the Joint Legislative Committee on the Budget. Additionally, department contracts submitted for approval shall be accompanied by a copy of the recommended plan for addressing the shortage of housing which was jointly approved by the House Committee on Administration of Criminal Justice and Senate Committee on Judiciary B pursuant to the provisions of La. Rev. Stat. 15:834.2.

            G. The department and local governmental subdivisions are hereby authorized to monitor the operations and correctional services provided to them by a private prison contractor. The Joint Legislative Committee on the Budget shall exercise continuous oversight over any correctional service provided by a private prison contractor.

            Acts 1989, No. 360, §1, eff. June 28, 1989; Acts 1992, No. 916, §1, eff. July 9, 1992; Acts 2008, No. 224, §1, eff. June 16, 2008; Acts 2016, No. 561, §2, eff. July 1, 2016.