US to phase out federal use of privately-operated prisons

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DOJ will end use of private prisons -Report


WASHINGTON, Aug 18 (Reuters) - The U.S. Justice Department plans to phase out its use of privately-operated prisons, which it called less safe and less effective than government-run facilities, according to a memo released publicly by the department on Thursday.

In a move that hammered corrections company share prices, the Justice Department memo called for gradually phasing out the use of private prisons by letting contracts expire or by scaling them back.

Geo Group Inc shares fell about 28 percent while Corrections Corp of America shares sank about 20 percent.

The Justice Department does not have jurisdiction over state prisons. Both Texas and Louisiana use private companies to run their prisons, according to the American Civil Liberties Union.

According to the memo, approximately 15 percent of federal prisoners were in private facilities in 2013.

Privately-run prisons "simply do not provide the same level of correctional services, programs, and resources; they do not save substantially on costs; and as noted in a recent report by the Department's Office of Inspector General, they do not maintain the same level of safety and security," Deputy Attorney General Sally Yates wrote in the memo.

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NTP: Life in prison: A look at becoming an inmate
Prisoners stand while being processed for intake at the Georgia Diagnostic and Classification Prison, Tuesday, Dec. 1, 2015, in Jackson, Ga. They arrive by the busload each Tuesday and Thursday, dozens of new inmates entering Georgiaâs prison system. Most stay only a week or two. But for those sentenced to die, this is their last stop. (AP Photo/David Goldman)
Frederick Harris, right, cuts the hair of Josh Harris, no relation, as he is processed for intake at the Georgia Diagnostic and Classification Prison, Tuesday, Dec. 1, 2015, in Jackson, Ga. When inmates arrive, their possessions are inventoried. Then they shower and don white jumpsuits. They sit in barber chairs while permanent inmates give them close haircuts, then pose for an ID photo. (AP Photo/David Goldman)
A motivational poster hangs on the wall as prisoners stand at attention while being processed for intake at the Georgia Diagnostic and Classification Prison, Tuesday, Dec. 1, 2015, in Jackson, Ga. The prison, the stateâs biggest, houses about 2,100 male inmates on a wooded, 900-acre campus about 50 miles south of Atlanta. A warden and three deputy wardens oversee more than 600 employees. (AP Photo/David Goldman)
Prisoner Ricky Wheat looks out from his cell at the Georgia Diagnostic and Classification Prison, Tuesday, Dec. 1, 2015, in Jackson, Ga. Inside the prison itâs loud and busy. Heavy metal gates clank open and shut. Inmates shuffle in single-file lines, guided by just a few guards. Chatter, shouts and the crackling of radios echo with nothing soft in sight to absorb the sound. (AP Photo/David Goldman)
A prisoner faces a mural painted by inmates on a cinderblock wall inside the Georgia Diagnostic and Classification Prison, Tuesday, Dec. 1, 2015, in Jackson, Ga. When visitors approach, inmates in the hallways turn their backs and stand close to the walls. That makes it easy for guards to spot a guy who steps out of line. (AP Photo/David Goldman)
Capt. Dwain Williams checks on a prisoner in the the Special Management Unit, known as high-max at the Georgia Diagnostic and Classification Prison, Tuesday, Dec. 1, 2015, in Jackson, Ga. Face-to-face interaction is rare. The cells are only 7 by 13½ feet, and inmates canât see out unless guards slide back a metal cover over the grated opening on the door. Meals slide through an opening like a mail slot. (AP Photo/David Goldman)
An inmate looks out of his cell in the the Special Management Unit, known as high-max at the Georgia Diagnostic and Classification Prison, Tuesday, Dec. 1, 2015, in Jackson, Ga. A select few have glass instead of sliding metal doors as windows because theyâre known to hurt themselves and need extra supervision. Theyâre on the same row as others whose cells are behind a glass partition because they have a history of throwing things, including bodily fluids, from their cells. (AP Photo/David Goldman)
An inmate takes a GED exam at the Georgia Diagnostic and Classification Prison, Tuesday, Dec. 1, 2015, in Jackson, Ga. While many in high-max wonât ever be free, some will eventually get out. The GED program aims to help a relatively small number of inmates who will eventually get out be better prepared for release. (AP Photo/David Goldman)
Sgt. Michael Stovall looks through a set of security gates on death row at the Georgia Diagnostic and Classification Prison, Tuesday, Dec. 1, 2015, in Jackson, Ga. The inmates on death row have been convicted of horrific crimes, but they generally cause few problems according to prison Warden Bruce Chatman. Possibly because many still have appeals pending and donât want to risk jeopardizing a chance, however slim, that their lives could be spared, he said. (AP Photo/David Goldman)
Personal items sit on shelves of a prisoner's cell on death row at the Georgia Diagnostic and Classification Prison, Tuesday, Dec. 1, 2015, in Jackson, Ga. The 76 death row inmates live in four âpodsâ of neatly kept single-inmate cells measuring just 6½ by 9 feet and feature a bed, sink, toilet and shelves. (AP Photo/David Goldman)
Shoes sit under a prisoner's bed in his cell on death row at the Georgia Diagnostic and Classification Prison, Tuesday, Dec. 1, 2015, in Jackson, Ga. Georgia has executed inmates by injection since October 2001, when the state Supreme Court ruled electrocution violated the stateâs ban on cruel and unusual punishment. (AP Photo/David Goldman)
A prisoner on death row stands in his cell at the Georgia Diagnostic and Classification Prison, Tuesday, Dec. 1, 2015, in Jackson, Ga. An electric chair that was used in 23 executions, a primitive-looking wooden armchair outfitted with leather straps, now sits unused in a closet off the area where witnesses sit for executions. (AP Photo/David Goldman)
A cell sits empty on death row at the Georgia Diagnostic and Classification Prison, Tuesday, Dec. 1, 2015, in Jackson, Ga. Once a judge signs an execution order, the warden meets with the inmate to read him the order, give him a copy and ask if he has any questions. The inmate doesnât return to death row but instead is held in the prisonâs medical area under 24-hour watch by two guards for the roughly two weeks until his execution date. (AP Photo/David Goldman)
A calendar hangs inside a prisoner's cell on death row at the Georgia Diagnostic and Classification Prison, Tuesday, Dec. 1, 2015, in Jackson, Ga. On the day of the execution, the condemned inmate can receive visitors until about 3 p.m., when heâs given a medical checkup and then brought to a holding cell near the execution chamber around 5 p.m. Heâs given his final meal and has an opportunity to record a final statement. (AP Photo/David Goldman)
Sgt. Andrew Archie walks through death row at the Georgia Diagnostic and Classification Prison, Tuesday, Dec. 1, 2015, in Jackson, Ga. The 76 death row inmates live in four âpodsâ of neatly kept single-inmate cells measuring just 6½ by 9 feet and feature a bed, sink, toilet and shelves. (AP Photo/David Goldman)
Prison Warden Bruce Chatman talks with prisoners on death row as they walk in a yard at the Georgia Diagnostic and Classification Prison, Tuesday, Dec. 1, 2015, in Jackson, Ga. On the unusually warm early December morning, six men were in the yard that includes basketball and volleyball nets. Several took the opportunity to bend the wardenâs ear, asking about a backed-up toilet and people allowed to visit. Another asked: âHey, warden. Can you help us get a basketball? Itâs been over two months.â (AP Photo/David Goldman)
Correctional officers are reflected in a puddle as they stand guard outside a yard for death row inmates at the Georgia Diagnostic and Classification Prison, Tuesday, Dec. 1, 2015, in Jackson, Ga. Inmates are allowed into the common area or into the outside yard in small groups of men who are known to get along. (AP Photo/David Goldman)
Deputy Warden of Security Keith Eutsey, left, and Warden Bruce Chatman walk to the execution chamber along rows of barbed wire at the Georgia Diagnostic and Classification Prison, Tuesday, Dec. 1, 2015, in Jackson, Ga. Death row inmates donât have far to go when their appeals run out. The chamber where lethal injections take place, a small room with a gurney, separated by a large pane of glass from the observation area, is on the grounds. (AP Photo/David Goldman)
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The Justice Department decided three weeks ago to end a private prison contract for 1,200 beds, Yates said in a blog post.

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