This shouldn't be a surprize. When I heard about Ahnold's plan to make room by moving inmates to civilan run prisons outside Cali..I sat back and waited.
I didn't have to wait long. Here is an article from the LAT. To wit:
The opinion by the Legislative Counsel, a nonpartisan legal office that provides policy advice to lawmakers, casts a legal shadow over Gov. Arnold Schwarzenegger's plan to relieve the prison crowding crisis by housing some inmates out of state in lockups run by private firms. The opinion said that, with certain exceptions, the state may not contract out services that have traditionally been performed by public employees.
Ahnolds minions will fight it however..anything to keep the Federal government from taking over the entire prison system here. They already run the health services division of the prison system.