Correction, Dept. of - As introduced, requires the department to develop and implement a performance-based contracting program for each contractor with which it contracts to operate prison facilities; requires the program to make the payment of an amount equal to 25 percent of the total funds appropriated to the contractor during a fiscal year conditional upon yearly performance improvements based upon a set of performance measures. - Amends TCA Title 41.

SB 1686 requires Tennessee's Department of Correction to create a performance-based contracting program for entities operating state prison facilities. It ties 25% of each contractor's annual funding to yearly improvements on specific, measurable outcomes - including staff turnover rates, inmate safety metrics (like preventable deaths and sexual violence incidents), participation in rehabilitation programs, and post-release employment. Contractors must meet these targets to receive the full 25% payment; otherwise, the funds revert to the state general fund. The program must be implemented within six months, with quarterly audits by the comptroller to verify compliance and public reporting of results.