12-50-106. Contracts for correctional facilities.

12-50-106. Contracts for correctional facilities. (a) The Division of Correction, any regional corrections commission, and any political subdivision are authorized to enter into contracts with each other and with prison contractors for the financing, acquiring, constructing, and operating of facilities. (b) Any contract for the financing, acquiring, constructing, or operating of facilities between the division and a prison contractor shall be approved by the Board of Corrections, subject to the advice and consent of the Legislative Council. (c) 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; and (4) The ability to comply with applicable court orders and correctional standards. (d) Contracts awarded under this section, including contracts for the provision of correctional services or 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 of up to twenty (20) years, subject to the requirement for annual appropriation of funds by each political subdivision and subject to the requirement of annual appropriations by the state. (e) Contracts awarded under the provisions of this section at a minimum shall comply with the following: (1) Provide for internal and perimeter security to protect the public, employees, and inmates; (2) Provide inmates with work or training opportunities while incarcerated. However, the contractor shall not benefit financially from the labor of inmates; (3) Impose discipline on inmates only in accordance with applicable rules and procedures; and (4) Provide proper food, clothing, housing, and medical care for inmates. (f) 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 (5) years, or for each of the years the contractor has been in operation, if fewer than five (5) years and provides other financial information as requested; and (2)(A) The contractor provides an adequate plan of indemnification, specifically including indemnity for civil rights claims. (B) The indemnification plan shall be adequate to protect the state, political subdivisions, and public officials, including county sheriffs and chiefs of police, from all claims and losses incurred as a result of the contract. (C) Nothing in this section is intended to deprive a prison contractor, the state, or a political subdivision of the benefits of any law limiting exposure to liability or setting a limit on damages.