State Codes and Statutes

Statutes > North-carolina > Chapter_148 > GS_148-37

§ 148‑37.  Additionalfacilities authorized; contractual arrangements.

(a)        Subject to theprovisions of G.S. 143‑341, the State Department of Correction mayestablish additional facilities for use by the Department, such facilities tobe either of a permanent type of construction or of a temporary or movable typeas the Department may find most advantageous to the particular needs, to theend that the prisoners under its supervision may be so distributed throughoutthe State as to facilitate individualization of treatment designed to preparethem for lawful living in the community where they are most likely to resideafter their release from prison. For this purpose, the Department may purchaseor lease sites and suitable lands adjacent thereto and erect necessarybuildings thereon, or purchase or lease existing facilities, all within thelimits of allotments as approved by the Department of Administration.

(b)        The Secretary ofCorrection may contract with the proper official of the United States or of anycounty or city of this State for the confinement of federal prisoners afterthey have been sentenced, county, or city prisoners in facilities of the Stateprison system or for the confinement of State prisoners in any county or anycity facility located in North Carolina, or any facility of the United StatesBureau of Prisons, when to do so would most economically and effectivelypromote the purposes served by the Department of Correction. Except asotherwise provided, any contract made under the authority of this subsectionshall be for a period of not more than two years, and shall be renewable fromtime to time for a period not to exceed two years. Contracts made under theauthority of this subsection for the confinement of State prisoners in local ordistrict confinement facilities may be for a period of not more than 10 yearsand renewable from time to time for a period not to exceed 10 years, and shallbe subject to the approval of the Council of State and the Department ofAdministration after consultation with the Joint Legislative Commission onGovernmental Operations. Contracts for receiving federal, county and cityprisoners shall provide for reimbursing the State in full for all costsinvolved. The financial provisions shall have the approval of the Department ofAdministration before the contract is executed. Payments received under suchcontracts shall be deposited in the State treasury for the use of the StateDepartment of Correction. Such payments are hereby appropriated to the StateDepartment of Correction as a supplementary fund to compensate for theadditional care and maintenance of such prisoners as are received under suchcontracts.

(b1)      Recodified as G.S.148‑37.2 by Session Laws 2001‑84, s. 1.

(c)        In addition to theauthority contained in subsections (a) and (b) of this section, and in additionto the contracts ratified by subsection (f) of this section, the Secretary ofCorrection may enter into contracts with any public entity or any privatenonprofit or for‑profit firms for the confinement and care of Stateprisoners in any out‑of‑state correctional facility when to do sowould most economically and effectively promote the purposes served by theDepartment of Correction. Contracts entered into under the authority of thissubsection shall be for a period not to exceed two years and shall be renewablefrom time to time for a period not to exceed two years. Prisoners may be sentto out‑of‑state correctional facilities only when there are noavailable facilities in this State within the State prison system toappropriately house those prisoners. Any contract made under the authority ofthis subsection shall be approved by the Department of Administration beforethe contract is executed. Before expending more than the amount specificallyappropriated by the General Assembly for the out‑of‑state housingof inmates, the Department shall obtain the approval of the Joint LegislativeCommission on Governmental Operations and shall report such expenditures to theChairs of the Senate and House Appropriations Committees, the Chairs of theSenate and House Appropriations Subcommittees on Justice and Public Safety, andthe Chairs of the Joint Legislative Corrections, Crime Control, and JuvenileJustice Oversight Committee.

(d)        Prisoners confinedin out‑of‑state correctional facilities pursuant to subsection (c)of this section shall remain subject to the rules adopted for the conduct ofpersons committed to the State prison system. The rules regarding good time andgain time, discipline, classification, extension of the limits of confinement,transfers, housing arrangements, and eligibility for parole shall apply toinmates housed in those out‑of‑state correctional facilities. Theoperators of those out‑of‑state correctional facilities maypromulgate any other rules as may be necessary for the operation of thosefacilities with the written approval of the Secretary of Correction. Custodialofficials employed by an out‑of‑state correctional facility areagents of the Secretary of Correction and may use those procedures for use offorce authorized by the Secretary of Correction not inconsistent with the lawsof the State of situs of the facility to defend themselves, to enforce theobservance of discipline in compliance with correctional facility rules, to securethe person of a prisoner, and to prevent escape. Prisoners confined to out‑of‑statecorrectional facilities may be required to perform reasonable work assignmentswithin those facilities. Private firms under subsection (c) of this sectionshall employ inmate disciplinary and grievance policies of the North CarolinaDepartment of Correction.

(e)        Repealed by SessionLaws 1995, c. 324, s. 19.10.

(f)         Any contractsentered into by the Department of Correction with public contractors prior toMarch 25, 1994, for the out‑of‑state housing of inmates areratified.

(g)        The Secretary ofCorrection may contract with private for‑profit or nonprofit firms forthe provision and operation of four or more confinement facilities totaling upto 2,000 beds in the State to house State prisoners when to do so would mosteconomically and effectively promote the purposes served by the Department ofCorrection. This 2,000‑bed limitation shall not apply to the 500 beds inprivate substance abuse treatment centers authorized by the General Assemblyprior to July 1, 1995. Whenever the Department of Correction determines thatnew prison facilities are required in addition to existing and plannedfacilities, the Department may contract for any remaining beds authorized bythis section before constructing State‑operated facilities.

Contracts entered under theauthority of this subsection shall be for a period not to exceed 10 years,shall be renewable from time to time for a period not to exceed 10 years. TheSecretary of Correction shall enter contracts under this subsection only iffunds are appropriated for this purpose by the General Assembly. Contractsentered under the authority of this subsection may be subject to anyrequirements for the location of the confinement facilities set forth by theGeneral Assembly in appropriating those funds.

Once the Department has made adetermination to contract for additional private prison beds, it shall issue arequest for proposals within 30 days of the decision. The request for proposalsshall require bids to be submitted within two months, and the Department shallaward contracts at the earliest practicable date after the submission of bids.The Secretary of Correction, in consultation with the Chairs of the JointLegislative Corrections, Crime Control, and Juvenile Justice OversightCommittee and the Chairs of the House and Senate Appropriations Subcommitteeson Justice and Public Safety, shall make recommendations to the StatePurchasing Officer on the final award decision. The State Purchasing Officershall make the final award decision, and the contract shall then be subject tothe approval of the Council of State after consultation with the JointLegislative Commission on Governmental Operations.

Contracts made under theauthority of this subsection may provide the State with an option to purchasethe confinement facility or may provide for the purchase of the confinementfacility by the State. Contracts made under the authority of this subsectionshall state that plans and specifications for private confinement facilitiesshall be furnished to and reviewed by the Office of State Construction. TheOffice of State Construction shall inspect and review each project duringconstruction to ensure that the project is suitable for habitation and to determinewhether the project would be suitable for future acquisition by the State. Allcontracts for the housing of State prisoners in private confinement facilitiesshall require a minimum of ten million dollars ($10,000,000) of occurrence‑basedliability insurance and shall hold the State harmless and provide reimbursementfor all liability arising out of actions caused by operations and employees ofthe private confinement facility.

Prisoners housed in privateconfinement facilities pursuant to this subsection shall remain subject to therules adopted for the conduct of persons committed to the State prison system.The Secretary of Correction may review and approve the design and constructionof private confinement facilities before housing State prisoners in thesefacilities. The rules regarding good time, gain time, and earned credits,discipline, classification, extension of the limits of confinement, transfers,housing arrangements, and eligibility for parole shall apply to inmates housedin private confinement facilities pursuant to this subsection. The operators ofprivate confinement facilities may adopt any other rules as may be necessaryfor the operation of those facilities with the written approval of theSecretary of Correction. Custodial officials employed by a private confinementfacility are agents of the Secretary of Correction and may use those proceduresfor use of force authorized by the Secretary of Correction to defendthemselves, to enforce the observance of discipline in compliance withconfinement facility rules, to secure the person of a prisoner, and to preventescape. Private firms under this subsection shall employ inmate disciplinaryand grievance policies of the North Carolina Department of Correction.

(h)        Private confinementfacilities under this section shall be designed, built, and operated inaccordance with applicable State laws, court orders, fire safety codes, andlocal regulations.

(i)         The Department ofCorrection shall make a written report no later than March 1 of every odd‑numberedyear, beginning in 1997, on the substance of all outstanding contracts for thehousing of State prisoners entered into under the authority of this section.The report shall be submitted to the Council of State, the Department ofAdministration, the Joint Legislative Commission on Governmental Operations,and the Joint Legislative Corrections, Crime Control, and Juvenile JusticeOversight Committee. In addition to the report, the Department of Correctionshall provide information on contracts for the housing of State prisoners asrequested by these groups. (1933, c. 172, s. 19; 1957, c. 349, s. 10; 1967, c.996, s. 8; 1973, c. 1262, s. 10; 1975, c. 879, s. 46; 1977, 2nd Sess., c. 1147,s. 34; 1994, Ex. Sess., c. 24, s. 16(a), (b); 1995, c. 324, s. 19.10(a), (b);c. 507, s. 19; 1996, 2nd Ex. Sess., c. 18, s. 20.18; 1997‑443, ss.21.4(c)‑(e); 1999‑237, s. 18.20(a); 2001‑84, s. 1; 2001‑138,s. 2.)

State Codes and Statutes

Statutes > North-carolina > Chapter_148 > GS_148-37

§ 148‑37.  Additionalfacilities authorized; contractual arrangements.

(a)        Subject to theprovisions of G.S. 143‑341, the State Department of Correction mayestablish additional facilities for use by the Department, such facilities tobe either of a permanent type of construction or of a temporary or movable typeas the Department may find most advantageous to the particular needs, to theend that the prisoners under its supervision may be so distributed throughoutthe State as to facilitate individualization of treatment designed to preparethem for lawful living in the community where they are most likely to resideafter their release from prison. For this purpose, the Department may purchaseor lease sites and suitable lands adjacent thereto and erect necessarybuildings thereon, or purchase or lease existing facilities, all within thelimits of allotments as approved by the Department of Administration.

(b)        The Secretary ofCorrection may contract with the proper official of the United States or of anycounty or city of this State for the confinement of federal prisoners afterthey have been sentenced, county, or city prisoners in facilities of the Stateprison system or for the confinement of State prisoners in any county or anycity facility located in North Carolina, or any facility of the United StatesBureau of Prisons, when to do so would most economically and effectivelypromote the purposes served by the Department of Correction. Except asotherwise provided, any contract made under the authority of this subsectionshall be for a period of not more than two years, and shall be renewable fromtime to time for a period not to exceed two years. Contracts made under theauthority of this subsection for the confinement of State prisoners in local ordistrict confinement facilities may be for a period of not more than 10 yearsand renewable from time to time for a period not to exceed 10 years, and shallbe subject to the approval of the Council of State and the Department ofAdministration after consultation with the Joint Legislative Commission onGovernmental Operations. Contracts for receiving federal, county and cityprisoners shall provide for reimbursing the State in full for all costsinvolved. The financial provisions shall have the approval of the Department ofAdministration before the contract is executed. Payments received under suchcontracts shall be deposited in the State treasury for the use of the StateDepartment of Correction. Such payments are hereby appropriated to the StateDepartment of Correction as a supplementary fund to compensate for theadditional care and maintenance of such prisoners as are received under suchcontracts.

(b1)      Recodified as G.S.148‑37.2 by Session Laws 2001‑84, s. 1.

(c)        In addition to theauthority contained in subsections (a) and (b) of this section, and in additionto the contracts ratified by subsection (f) of this section, the Secretary ofCorrection may enter into contracts with any public entity or any privatenonprofit or for‑profit firms for the confinement and care of Stateprisoners in any out‑of‑state correctional facility when to do sowould most economically and effectively promote the purposes served by theDepartment of Correction. Contracts entered into under the authority of thissubsection shall be for a period not to exceed two years and shall be renewablefrom time to time for a period not to exceed two years. Prisoners may be sentto out‑of‑state correctional facilities only when there are noavailable facilities in this State within the State prison system toappropriately house those prisoners. Any contract made under the authority ofthis subsection shall be approved by the Department of Administration beforethe contract is executed. Before expending more than the amount specificallyappropriated by the General Assembly for the out‑of‑state housingof inmates, the Department shall obtain the approval of the Joint LegislativeCommission on Governmental Operations and shall report such expenditures to theChairs of the Senate and House Appropriations Committees, the Chairs of theSenate and House Appropriations Subcommittees on Justice and Public Safety, andthe Chairs of the Joint Legislative Corrections, Crime Control, and JuvenileJustice Oversight Committee.

(d)        Prisoners confinedin out‑of‑state correctional facilities pursuant to subsection (c)of this section shall remain subject to the rules adopted for the conduct ofpersons committed to the State prison system. The rules regarding good time andgain time, discipline, classification, extension of the limits of confinement,transfers, housing arrangements, and eligibility for parole shall apply toinmates housed in those out‑of‑state correctional facilities. Theoperators of those out‑of‑state correctional facilities maypromulgate any other rules as may be necessary for the operation of thosefacilities with the written approval of the Secretary of Correction. Custodialofficials employed by an out‑of‑state correctional facility areagents of the Secretary of Correction and may use those procedures for use offorce authorized by the Secretary of Correction not inconsistent with the lawsof the State of situs of the facility to defend themselves, to enforce theobservance of discipline in compliance with correctional facility rules, to securethe person of a prisoner, and to prevent escape. Prisoners confined to out‑of‑statecorrectional facilities may be required to perform reasonable work assignmentswithin those facilities. Private firms under subsection (c) of this sectionshall employ inmate disciplinary and grievance policies of the North CarolinaDepartment of Correction.

(e)        Repealed by SessionLaws 1995, c. 324, s. 19.10.

(f)         Any contractsentered into by the Department of Correction with public contractors prior toMarch 25, 1994, for the out‑of‑state housing of inmates areratified.

(g)        The Secretary ofCorrection may contract with private for‑profit or nonprofit firms forthe provision and operation of four or more confinement facilities totaling upto 2,000 beds in the State to house State prisoners when to do so would mosteconomically and effectively promote the purposes served by the Department ofCorrection. This 2,000‑bed limitation shall not apply to the 500 beds inprivate substance abuse treatment centers authorized by the General Assemblyprior to July 1, 1995. Whenever the Department of Correction determines thatnew prison facilities are required in addition to existing and plannedfacilities, the Department may contract for any remaining beds authorized bythis section before constructing State‑operated facilities.

Contracts entered under theauthority of this subsection shall be for a period not to exceed 10 years,shall be renewable from time to time for a period not to exceed 10 years. TheSecretary of Correction shall enter contracts under this subsection only iffunds are appropriated for this purpose by the General Assembly. Contractsentered under the authority of this subsection may be subject to anyrequirements for the location of the confinement facilities set forth by theGeneral Assembly in appropriating those funds.

Once the Department has made adetermination to contract for additional private prison beds, it shall issue arequest for proposals within 30 days of the decision. The request for proposalsshall require bids to be submitted within two months, and the Department shallaward contracts at the earliest practicable date after the submission of bids.The Secretary of Correction, in consultation with the Chairs of the JointLegislative Corrections, Crime Control, and Juvenile Justice OversightCommittee and the Chairs of the House and Senate Appropriations Subcommitteeson Justice and Public Safety, shall make recommendations to the StatePurchasing Officer on the final award decision. The State Purchasing Officershall make the final award decision, and the contract shall then be subject tothe approval of the Council of State after consultation with the JointLegislative Commission on Governmental Operations.

Contracts made under theauthority of this subsection may provide the State with an option to purchasethe confinement facility or may provide for the purchase of the confinementfacility by the State. Contracts made under the authority of this subsectionshall state that plans and specifications for private confinement facilitiesshall be furnished to and reviewed by the Office of State Construction. TheOffice of State Construction shall inspect and review each project duringconstruction to ensure that the project is suitable for habitation and to determinewhether the project would be suitable for future acquisition by the State. Allcontracts for the housing of State prisoners in private confinement facilitiesshall require a minimum of ten million dollars ($10,000,000) of occurrence‑basedliability insurance and shall hold the State harmless and provide reimbursementfor all liability arising out of actions caused by operations and employees ofthe private confinement facility.

Prisoners housed in privateconfinement facilities pursuant to this subsection shall remain subject to therules adopted for the conduct of persons committed to the State prison system.The Secretary of Correction may review and approve the design and constructionof private confinement facilities before housing State prisoners in thesefacilities. The rules regarding good time, gain time, and earned credits,discipline, classification, extension of the limits of confinement, transfers,housing arrangements, and eligibility for parole shall apply to inmates housedin private confinement facilities pursuant to this subsection. The operators ofprivate confinement facilities may adopt any other rules as may be necessaryfor the operation of those facilities with the written approval of theSecretary of Correction. Custodial officials employed by a private confinementfacility are agents of the Secretary of Correction and may use those proceduresfor use of force authorized by the Secretary of Correction to defendthemselves, to enforce the observance of discipline in compliance withconfinement facility rules, to secure the person of a prisoner, and to preventescape. Private firms under this subsection shall employ inmate disciplinaryand grievance policies of the North Carolina Department of Correction.

(h)        Private confinementfacilities under this section shall be designed, built, and operated inaccordance with applicable State laws, court orders, fire safety codes, andlocal regulations.

(i)         The Department ofCorrection shall make a written report no later than March 1 of every odd‑numberedyear, beginning in 1997, on the substance of all outstanding contracts for thehousing of State prisoners entered into under the authority of this section.The report shall be submitted to the Council of State, the Department ofAdministration, the Joint Legislative Commission on Governmental Operations,and the Joint Legislative Corrections, Crime Control, and Juvenile JusticeOversight Committee. In addition to the report, the Department of Correctionshall provide information on contracts for the housing of State prisoners asrequested by these groups. (1933, c. 172, s. 19; 1957, c. 349, s. 10; 1967, c.996, s. 8; 1973, c. 1262, s. 10; 1975, c. 879, s. 46; 1977, 2nd Sess., c. 1147,s. 34; 1994, Ex. Sess., c. 24, s. 16(a), (b); 1995, c. 324, s. 19.10(a), (b);c. 507, s. 19; 1996, 2nd Ex. Sess., c. 18, s. 20.18; 1997‑443, ss.21.4(c)‑(e); 1999‑237, s. 18.20(a); 2001‑84, s. 1; 2001‑138,s. 2.)


State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_148 > GS_148-37

§ 148‑37.  Additionalfacilities authorized; contractual arrangements.

(a)        Subject to theprovisions of G.S. 143‑341, the State Department of Correction mayestablish additional facilities for use by the Department, such facilities tobe either of a permanent type of construction or of a temporary or movable typeas the Department may find most advantageous to the particular needs, to theend that the prisoners under its supervision may be so distributed throughoutthe State as to facilitate individualization of treatment designed to preparethem for lawful living in the community where they are most likely to resideafter their release from prison. For this purpose, the Department may purchaseor lease sites and suitable lands adjacent thereto and erect necessarybuildings thereon, or purchase or lease existing facilities, all within thelimits of allotments as approved by the Department of Administration.

(b)        The Secretary ofCorrection may contract with the proper official of the United States or of anycounty or city of this State for the confinement of federal prisoners afterthey have been sentenced, county, or city prisoners in facilities of the Stateprison system or for the confinement of State prisoners in any county or anycity facility located in North Carolina, or any facility of the United StatesBureau of Prisons, when to do so would most economically and effectivelypromote the purposes served by the Department of Correction. Except asotherwise provided, any contract made under the authority of this subsectionshall be for a period of not more than two years, and shall be renewable fromtime to time for a period not to exceed two years. Contracts made under theauthority of this subsection for the confinement of State prisoners in local ordistrict confinement facilities may be for a period of not more than 10 yearsand renewable from time to time for a period not to exceed 10 years, and shallbe subject to the approval of the Council of State and the Department ofAdministration after consultation with the Joint Legislative Commission onGovernmental Operations. Contracts for receiving federal, county and cityprisoners shall provide for reimbursing the State in full for all costsinvolved. The financial provisions shall have the approval of the Department ofAdministration before the contract is executed. Payments received under suchcontracts shall be deposited in the State treasury for the use of the StateDepartment of Correction. Such payments are hereby appropriated to the StateDepartment of Correction as a supplementary fund to compensate for theadditional care and maintenance of such prisoners as are received under suchcontracts.

(b1)      Recodified as G.S.148‑37.2 by Session Laws 2001‑84, s. 1.

(c)        In addition to theauthority contained in subsections (a) and (b) of this section, and in additionto the contracts ratified by subsection (f) of this section, the Secretary ofCorrection may enter into contracts with any public entity or any privatenonprofit or for‑profit firms for the confinement and care of Stateprisoners in any out‑of‑state correctional facility when to do sowould most economically and effectively promote the purposes served by theDepartment of Correction. Contracts entered into under the authority of thissubsection shall be for a period not to exceed two years and shall be renewablefrom time to time for a period not to exceed two years. Prisoners may be sentto out‑of‑state correctional facilities only when there are noavailable facilities in this State within the State prison system toappropriately house those prisoners. Any contract made under the authority ofthis subsection shall be approved by the Department of Administration beforethe contract is executed. Before expending more than the amount specificallyappropriated by the General Assembly for the out‑of‑state housingof inmates, the Department shall obtain the approval of the Joint LegislativeCommission on Governmental Operations and shall report such expenditures to theChairs of the Senate and House Appropriations Committees, the Chairs of theSenate and House Appropriations Subcommittees on Justice and Public Safety, andthe Chairs of the Joint Legislative Corrections, Crime Control, and JuvenileJustice Oversight Committee.

(d)        Prisoners confinedin out‑of‑state correctional facilities pursuant to subsection (c)of this section shall remain subject to the rules adopted for the conduct ofpersons committed to the State prison system. The rules regarding good time andgain time, discipline, classification, extension of the limits of confinement,transfers, housing arrangements, and eligibility for parole shall apply toinmates housed in those out‑of‑state correctional facilities. Theoperators of those out‑of‑state correctional facilities maypromulgate any other rules as may be necessary for the operation of thosefacilities with the written approval of the Secretary of Correction. Custodialofficials employed by an out‑of‑state correctional facility areagents of the Secretary of Correction and may use those procedures for use offorce authorized by the Secretary of Correction not inconsistent with the lawsof the State of situs of the facility to defend themselves, to enforce theobservance of discipline in compliance with correctional facility rules, to securethe person of a prisoner, and to prevent escape. Prisoners confined to out‑of‑statecorrectional facilities may be required to perform reasonable work assignmentswithin those facilities. Private firms under subsection (c) of this sectionshall employ inmate disciplinary and grievance policies of the North CarolinaDepartment of Correction.

(e)        Repealed by SessionLaws 1995, c. 324, s. 19.10.

(f)         Any contractsentered into by the Department of Correction with public contractors prior toMarch 25, 1994, for the out‑of‑state housing of inmates areratified.

(g)        The Secretary ofCorrection may contract with private for‑profit or nonprofit firms forthe provision and operation of four or more confinement facilities totaling upto 2,000 beds in the State to house State prisoners when to do so would mosteconomically and effectively promote the purposes served by the Department ofCorrection. This 2,000‑bed limitation shall not apply to the 500 beds inprivate substance abuse treatment centers authorized by the General Assemblyprior to July 1, 1995. Whenever the Department of Correction determines thatnew prison facilities are required in addition to existing and plannedfacilities, the Department may contract for any remaining beds authorized bythis section before constructing State‑operated facilities.

Contracts entered under theauthority of this subsection shall be for a period not to exceed 10 years,shall be renewable from time to time for a period not to exceed 10 years. TheSecretary of Correction shall enter contracts under this subsection only iffunds are appropriated for this purpose by the General Assembly. Contractsentered under the authority of this subsection may be subject to anyrequirements for the location of the confinement facilities set forth by theGeneral Assembly in appropriating those funds.

Once the Department has made adetermination to contract for additional private prison beds, it shall issue arequest for proposals within 30 days of the decision. The request for proposalsshall require bids to be submitted within two months, and the Department shallaward contracts at the earliest practicable date after the submission of bids.The Secretary of Correction, in consultation with the Chairs of the JointLegislative Corrections, Crime Control, and Juvenile Justice OversightCommittee and the Chairs of the House and Senate Appropriations Subcommitteeson Justice and Public Safety, shall make recommendations to the StatePurchasing Officer on the final award decision. The State Purchasing Officershall make the final award decision, and the contract shall then be subject tothe approval of the Council of State after consultation with the JointLegislative Commission on Governmental Operations.

Contracts made under theauthority of this subsection may provide the State with an option to purchasethe confinement facility or may provide for the purchase of the confinementfacility by the State. Contracts made under the authority of this subsectionshall state that plans and specifications for private confinement facilitiesshall be furnished to and reviewed by the Office of State Construction. TheOffice of State Construction shall inspect and review each project duringconstruction to ensure that the project is suitable for habitation and to determinewhether the project would be suitable for future acquisition by the State. Allcontracts for the housing of State prisoners in private confinement facilitiesshall require a minimum of ten million dollars ($10,000,000) of occurrence‑basedliability insurance and shall hold the State harmless and provide reimbursementfor all liability arising out of actions caused by operations and employees ofthe private confinement facility.

Prisoners housed in privateconfinement facilities pursuant to this subsection shall remain subject to therules adopted for the conduct of persons committed to the State prison system.The Secretary of Correction may review and approve the design and constructionof private confinement facilities before housing State prisoners in thesefacilities. The rules regarding good time, gain time, and earned credits,discipline, classification, extension of the limits of confinement, transfers,housing arrangements, and eligibility for parole shall apply to inmates housedin private confinement facilities pursuant to this subsection. The operators ofprivate confinement facilities may adopt any other rules as may be necessaryfor the operation of those facilities with the written approval of theSecretary of Correction. Custodial officials employed by a private confinementfacility are agents of the Secretary of Correction and may use those proceduresfor use of force authorized by the Secretary of Correction to defendthemselves, to enforce the observance of discipline in compliance withconfinement facility rules, to secure the person of a prisoner, and to preventescape. Private firms under this subsection shall employ inmate disciplinaryand grievance policies of the North Carolina Department of Correction.

(h)        Private confinementfacilities under this section shall be designed, built, and operated inaccordance with applicable State laws, court orders, fire safety codes, andlocal regulations.

(i)         The Department ofCorrection shall make a written report no later than March 1 of every odd‑numberedyear, beginning in 1997, on the substance of all outstanding contracts for thehousing of State prisoners entered into under the authority of this section.The report shall be submitted to the Council of State, the Department ofAdministration, the Joint Legislative Commission on Governmental Operations,and the Joint Legislative Corrections, Crime Control, and Juvenile JusticeOversight Committee. In addition to the report, the Department of Correctionshall provide information on contracts for the housing of State prisoners asrequested by these groups. (1933, c. 172, s. 19; 1957, c. 349, s. 10; 1967, c.996, s. 8; 1973, c. 1262, s. 10; 1975, c. 879, s. 46; 1977, 2nd Sess., c. 1147,s. 34; 1994, Ex. Sess., c. 24, s. 16(a), (b); 1995, c. 324, s. 19.10(a), (b);c. 507, s. 19; 1996, 2nd Ex. Sess., c. 18, s. 20.18; 1997‑443, ss.21.4(c)‑(e); 1999‑237, s. 18.20(a); 2001‑84, s. 1; 2001‑138,s. 2.)