HOUSE CONCURRENT RESOLUTION 19 Requesting the Governor to direct the Department of Corrections to establish a task force to study current and future department operations. Representative Mulder stated that HCR 19 would request a task force study of the operations and future needs of the Department of Corrections. He said that the Department of 7 Corrections has been "running so fast to keep up", they have not been able to spend any time thinking about where the Department ought to be going. He added that the resolution and the fiscal note would allow the Department to do the planning necessary in order to control costs. Representative Mulder continued that the task force recommended by the resolution would provide a broad perspective and would be composed of four legislators, five representatives of the administration, one representative of the judiciary branch and three representatives of the public. The task force would be requested to report back by the end of January, 1996. Representative Brown referenced Page 2, Line 6-7, and recommended elements of the comprehensive plan not be predisposed. She recommended deleting the language "for private construction of prison facilities and private operations of prison facilities;." Representative Brown MOVED to adopt Amendment #1. Representative Mulder noted that he would consider that a "friendly" amendment. There being NO OBJECTION, it was adopted. Representative Mulder MOVED to adopt Amendment #2, 9- LS1092\A.1, Lauterbach, 4/26/95. [Attachment #1]. He stated that the amendment would allow for the Governor, the Speaker of the House and the Senate President to select the people from the private sector. Representative Parnell OBJECTED for purposes of discussion. He asked the motivation of the task force in being composed of public and private members as opposed to giving money to the Department to hire a private contractor to perform the service. Representative Mulder replied that he thought the money would not be available through the capital budget and that he felt the Legislature would be more cooperative if they were included in the initial stages of planning of the task force. Representative Mulder advised that privatization of prisons was the future goal in addressing terms of management of a large organization and facility. Representative Martin pointed out that the fiscal note would amount to $1000/day for the task force. He stressed that the work could be performed for a lower cost. Representative Mulder explained that the Department of Corrections also included a fiscal note in the amount of $350 thousand dollars. He continued, following conversations with other people in the business of evaluations, in hiring an outside contractor to do the evaluation, the reasonable cost would be $150 thousand dollars. He then added additional funds to cover the cost 8 of a staff person. Representative Parnell recommended placing the requested funds on the contractual line rather than the miscellaneous line. Representative Mulder stated that the miscellaneous line would allow for the maximum flexibility. Representative Navarre pointed out that the Department of Corrections has had their planning money reduced for many years. He emphasized that short funding would result in an insufficient plan. He recommended fully funding the note requested by the Department. Representative Brown proposed for the Committee's consideration a change to Page 2, Line 13, following the word "organizations", adding the language "who do not have financing interest in the issues to be addressed". She emphasized that there should be an independent objective review. Representative Mulder reminded Committee members that Amendment #2 had not yet been decided. Representative Parnell WITHDREW the OBJECTION to adopting Amendment #2. There being NO further OBJECTION to Amendment #2, it was adopted. Representative Brown MOVED to adopt Amendment #3, the previous recommended language addition to Page 2, Line 13, to avoid the issue of public members having a direct financial interest in the outcome of the legislation. Representative Parnell stated that the independent consultants should be ones that are really "independent". He stated that language was already included on Lines 15 & 16. BOB COLE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF CORRECTIONS, commented that in completing joint meetings with the legislative branch, the Department must find a way to accommodate the increasing demands currently placed on the cost of imprisonment. He added that there are many issues at hand with huge financial implications to the State. The language of the resolution is similar to that written by the Department in the capital budget request. Mr. Cole added that this type of project could require spending between $100 thousand to $1.0 million dollars and could take up to five years to complete. He stated that the $350 thousand dollar fiscal note provided by the Department was a modest amount to complete the project. Mr. Cole summarized that it would be the intent of the Department to hire a contractor who clearly did not have financial benefit 9 from the process except on a contractual level. Representative Parnell pointed out that Lines 15 & 16 clarify that the consultant not have a direct financial stake in the enterprise. Representative Mulder agreed with Representative Parnell and felt that inclusion of the language recommended by Representative Brown was not necessary. Representative Brown WITHDREW the MOTION to adopt Amendment #3. Representative Brown asked if both majority and minority representatives would be appointed. Representative Mulder noted that was the intention. Representative Brown advised that should be stipulated in the policy. Representative Mulder stated that would not be necessary. (Tape Change, HFC 95-111, Side 2). Representative Mulder MOVED to adopt Amendment #4. [Attachment #2]. Representative Martin OBJECTED. Representative Mulder stated that there are elements of the study that will take longer to accomplish and which will take time for a comprehensive review. Mr. Cole noted that the Department is bound by three union agreements. If a portion of the analysis requests that a section of the Department be privatized, the State is bound by the union agreement to negotiate a cost benefit analysis. He stressed that would not be possible by next year's legislature. He voiced support for the amendment. A roll call was taken on the MOTION. IN FAVOR: Mulder, Navarre, Parnell, Brown, Kelly, Foster OPPOSED: Martin Representatives Kohring, Therriault, Grussendorf and Hanley were not present for the vote. The MOTION PASSED (6-1). Representative Parnell MOVED that the fiscal note money line be moved to the "contractual" line. There being NO OBJECTION, it was moved. Representative Brown MOVED to report CS HJR 19 (FIN) out of Committee with a "do pass" recommendation and with a fiscal note by the House Finance Committee.