Senate Bill 1686 aims to establish a performance-based contracting program within the Tennessee Department of Correction. The bill introduces a new part to the Tennessee Code Annotated, defining key terms such as "Commissioner," "Contractor," and "Evaluator," and outlines the responsibilities of the department in developing and implementing the program. The program will incentivize contractors to improve performance and outcomes related to correctional services, with specific performance measures including staff turnover rates, offender health visits, and recidivism rates. The bill mandates that the department conduct quarterly audits and report findings to the General Assembly, ensuring transparency and accountability.

Additionally, the bill stipulates that conditional funds allocated to contractors will be based on their performance improvements, with a significant portion of these funds tied to recidivism and inmate safety metrics. The department is required to maintain comprehensive data for evaluation purposes and collaborate with various agencies to monitor performance outcomes. The program's design includes provisions for regular updates and evaluations, with the results made publicly available. Overall, the bill seeks to enhance the effectiveness of correctional services through a structured and accountable performance-based approach.