The evaluation focused on the In-Prison Therapeutic Community (IPTC) and Substance Abuse Felony Punishment (SAFP) programs. Approximately $137 million has been allocated to operate 800 IPTC and 4,500 SAFP beds and aftercare programs for the 1996-97 biennium. The evaluation is focusing on issues associated with the transition of program administration from the Texas Commission on Alcohol and Drug Abuse (TCADA) to the Texas Department of Criminal Justice (TDCJ), process issues associated with the development of program infrastructure, and program performance. The preliminary analysis indicates that the transition of the administration has reduced contract costs for treatment and resulted in the development of a financial and program monitoring system and program performance measures. In addition, the program is developing a revised screening and assessment process and reinstituted staff training. One-year and 2-year outcome evaluations will be completed next year and will determine the recidivism rates of offenders completing the program, offenders dropping out of the program, and comparison groups of drug-abusing offenders not entering the programs. Charts