Amends TCA Title 4; Title 8, Chapter 4, Part 1; Title 16, Chapter 22; Title 16, Chapter 3; Title 39; Title 40 and Title 41.

This bill requires the department of correction to collect and report certain information regarding alternatives to incarceration and disburse funds pursuant to this bill, as discussed below. Allocation of Funds Under this bill, all amounts allocated for purposes of implementing this bill will be appropriated to the department of correction, division of probation and parole field services, and the office of reentry services to administer for implementation of programs, as specified by this bill. This bill requires that funds be transferred from the general fund to the department of correction, which, after making appropriate calculations pursuant to this bill, must disburse funding to eligible districts and the office of reentry services for their use as follows: (1) 50 percent to the department of correction, office of reentry services, to be used for evidence-based practices and for use in fulfilling the reporting requirements required under this bill; (2) 25 percent to the department of correction, division of probation and parole field services, to be used for evidence-based practices; and (3) 25 percent to the department of correction, division of probation and parole field services, to be used for bonuses for all officers within a given district that receives incentive funding. For the purpose of allocating funds, this bill requires: (1) In any fiscal year in which a district receives money to be expended for the implementation of this bill, that the funds be made available to the department of correction, within 30 days of the deposit of those moneys, for the implementation of programs authorized by this bill; (2) The department of finance and administration, office of criminal justice programs, to provide oversight periodically regarding the monetary allocation to the specific divisions tasked with administering funds to ensure that disbursed funds are being appropriately used as specified in this bill; (3) That funds allocated pursuant to this bill be used to improve supervision, rehabilitative, and reentry services; (4) The department of correction to maintain a complete and accurate accounting of any and all funds received and disbursed pursuant to this bill; and (5) That the implementation of these allocation provisions be subject to funding in the general appropriations act. Outcome-based Measures This bill requires the department of correction, division of probation and parole field services, to define and track specific outcome-based measures, such as the percentage of persons on probation and parole who are being supervised in accordance with evidence-based practices. This bill requires that funds received by the department of correction, division of probation and parole field services, be accounted for in an annual written report to the chairs of the judiciary committees of the house of representatives and the senate. The department of correction must evaluate the effectiveness of the program. Data Collection This bill requires the department of correction, division of probation and parole field services, to gather to calculate the following: (1) After the conclusion of each calendar year beginning January 1, 2022: the probation failure rate per district; the statewide probation failure rate; the parole failure rate per district; the statewide parole failure rate; and the current total populations of probationers and parolees per district as of the date of the required report; (2) After the conclusion of the calendar year beginning January 1, 2025: the baseline probation failure rate per district; the baseline statewide probation failure rate; the baseline parole failure rate per district; and the baseline statewide parole failure rate per district; and (3) After the conclusion of each calendar year beginning January 1, 2025, to be calculated for that calendar year: comparative performance data, the historical failure rate for the last three years per district; and the statewide historical failure rate for the last three years. Marginal Cost of Incarceration This bill requires the department, after the conclusion of each calendar year beginning January 1, 2022, to calculate the marginal cost of incarceration for prison for that calendar year. This bill sets out certain factors that such calculation must take into consideration, such as the average length of stay in prison for persons returning to prison from probation or parole. If a person on parole or probation spends less than 14 days in detention, that person's detention will not apply to calculations outlined within this bill. Reinvest Payments Under this bill, beginning January 1, 2026, the department of finance and administration, office of criminal justice programs, in consultation with the department of correction, must calculate a reinvestment payment for the department of correction and a probation and parole failure reduction incentive payment for each district that has successfully improved outcomes based on comparative performance data for the most recently completed calendar year. This bill provides, for the purposes of such payment, that: (1) The total reinvestment payment to the department of correction must equal the total number of probationers and parolees successfully prevented from returning to prison compared to the statewide baseline probation and parole failure rates multiplied by 25 percent of the marginal cost of incarceration for a person returning to prison; (2) The funds must be directed primarily to the department of correction, office of reentry services, but may also be used, to the extent necessary, to fulfill reporting requirements pursuant to this bill; (3) The total reinvestment payment amount must be deposited into a special account in the general fund and then allocated to the department of correction; (4) Each district eligible for incentive funding, based on positive comparative performance data, must be included in the incentive funding calculation described in item (5) below. Any district that does not have positive comparative performance data is excluded from the incentive funding calculation; (5) The incentive payment for each eligible district is equal to the number of probationers and parolees successfully prevented from returning to prison in that district compared to the district-specific historical baselines, multiplied by 25 percent of the marginal cost of incarceration for a person returning to prison; (6) The calculation described in item (5) above must be done for each district, and then added together. The total incentive funding amount will be deposited into a special account in the general fund and then allocated to the department of correction; and (7) The department of correction, division of probation and parole field services, must proportionately disburse the district incentive funds as probation and parole failure reduction incentive payments to each eligible district based on the calculation in item (5) above; and (8) The implementation of this reinvestment payment provision will be subject to funding in the general appropriations act. Reporting This bill requires, commencing no later than 18 months following the initial receipt of funding pursuant to this bill, and annually thereafter, the department of correction to submit to the governor, the chair of the judiciary committee of the senate, and the chair of the criminal justice committee of the house of representatives a comprehensive report on the implementation of this bill. The full text of this bill details what must be included in such report. Appropriations This bill states the intent that the total funds earned as a result of improved outcomes in the department of correction each year be included and reflected in the budget the following year; and that funds allocated pursuant to this bill be used to supplement, not supplant, any other state or district appropriation for the supervisory probation or parole agent or the probation or parole department.