Authority: §§ 53.1-12, 53.1-19, 53.1-23, 53.1-24, 53.1-42, 53.1-43, 53.1-138, 53.1-188 and 53.1-190, Code of Virginia.

A. Included in this appropriation is $275,000 $525,000 in the first year and $275,000 $525,000 the second year from nongeneral funds for the purposes listed below. The source of the funds is profits generated by prison commissary operations:

1. $150,000 the first year and $150,000 the second year for Assisting Families of Inmates;

2. $300,000 the first year and $300,000 the second year for distribution to organizations that work to enhance faith-based services to inmates; and

3. $75,000 the first year and $75,000 the second year for the Save Our Shelters “Pen Pals” program.

B. The Department shall continue to utilize federal funds from the Department of Criminal Justice Services to operate a structured treatment program for youthful offenders at St. Brides Correctional Center and to expand intensive substance abuse treatment services in correctional facilities. The Department shall submit annual reports on its progress in implementing this program to the Secretary of Public Safety, the Department of Planning and Budget, and the Chairmen of the House Appropriations and Senate Finance Committees. Federal funds received by the Department of Corrections from the state prisoners component of the federal Residential Substance Abuse Treatment Program to implement the provisions of this paragraph shall be exempt from payment of statewide and agency indirect cost recoveries into the general fund. Funds received by the Department of Corrections pursuant to the federal Residential Substance Abuse Treatment Program for state prisoners program shall be used exclusively for the purposes specified in this paragraph.

C.1. The Department of Corrections is authorized to contract with other governmental entities to house male and female prisoners from those jurisdictions in facilities operated by the Department.

2.a. The State Comptroller shall continue the Contract Prisoners Special Revenue Fund on the Commonwealth Accounting and Reporting System to reflect the activities of contracts between the Commonwealth of Virginia and other governmental entities for the housing of prisoners in facilities operated by the Virginia Department of Corrections.

b. The Department of Corrections shall have the responsibility for recording and maintaining all appropriate accounting records and financial reporting of the Fund in accordance with generally accepted accounting principles. The State Comptroller and the Auditor of Public Accounts shall periodically review the Department's accounting and financial procedures for compliance with the requirement of this subparagraph.

c. Included in the appropriation for Items 419 through 420 is $6,500,932 the first year from the Fund.

D.1. The Department of Corrections may enter into agreements with local and regional jails to house state-responsible offenders in such facilities and to effect transfers of convicted state felons between and among such jails. Such agreements shall be governed by the provisions of Item 67 of this act.

2. The Department of Corrections, in conjunction with the Secretary of Public Safety, shall provide a status report on the department's jail pre-release program that includes details on the participating sites, number of inmates participating in the program, services provided to participants at each site, the status of individuals who have completed the program, any factors impacting program utilization, and the impact of the program on the department's ability to address the backlog of state responsible inmates in local and regional jails. This report shall be provided to the Governor and the Chairmen of the House Appropriations and Senate Finance Committees no later than October 1, 2004.

3. The Department shall prepare a plan to house a total of 1,000 state-responsible offenders in such local and regional jails as it may deem appropriate, pursuant to the jail contract bed program, during the 2004-06 biennium. The plan shall include an analysis of potential impediments to the expansion of the contract bed program, including, but not limited to, the extent to which current arrangements for housing federal prisoners may be absorbing jail capacity which could otherwise be used for this program. As a companion to this plan, the Department shall submit a budget amendment to the Department of Planning and Budget requesting the anticipated funds required to implement this plan, either in full or in part. As approved by the Secretary of Public Safety, the plan and associated request for funding shall be presented to the Governor and the Chairmen of the Senate Finance and House Appropriations Committees by September 15, 2004.