James B. Hunt, Jr., Governor
Theodis Beck, Secretary
Tracy Little, Director of Public Information (919) 733-4926

June 30, 2000

Department of Correction to Assume Operation of Private Prisons on September 30

RALEIGH -- The Department of Correction will assume operations of two private prisons on September 30, according to an agreement reached this week by DOC and Corrections Corporation of America.

The Department of Correction and CCA announced June 23 that they had entered into talks to transfer operation of the facilities to the state. Under the plan, the state will continue leasing the facilities from CCA.

"Transferring operations September 30 will enable the Division of Prisons and CCA to develop a plan that will allow for a smooth and seamless transition," said Correction Secretary Theodis Beck. "Initial conversations with CCA officials have been amicable and it is clear that both parties are interested in transferring control and operation of the facilities in as efficient and professional manner possible."

Among the Department of Correction’s first priorities during the transition period is meeting with current CCA employees who may be interested in applying for jobs with the state. Department of Correction Personnel staff will begin meeting with CCA employees during the week of July 17 to explain employment procedures, qualifications and state benefits. "Our goal is to retain as many CCA employees as possible," said Ron Gillespie, DOC assistant secretary for Human Resources. "We feel it is imperative that we talk with the current employees as soon as possible to inform them of how the process will work and of qualifications standards for various positions."

Prison Realty Trust, the real estate component of CCA, owns Pamlico Correctional Facility in Bayboro and Mountain View Correctional Facility in Spruce Pine and has operated the two facilities since 1998. The original operating agreement called for CCA to operate the prisons through 2003.


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