00 SENATE CS FOR CS FOR HOUSE BILL NO. 428(L&C) 01 "An Act relating to the authority of the Department of Corrections to contract 02 for facilities for the confinement and care of prisoners, and annulling a 03 regulation of the Department of Corrections that limits the purposes for which 04 an agreement with a private agency may be entered into; and giving notice of 05 and approving a lease-purchase agreement for the design, construction, and 06 operation of a correctional facility, and setting conditions and limitations on the 07 facility's design, construction, and operation." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09 * Section 1. AS 33.30.031(a) is amended to read: 10  (a) The commissioner shall determine the availability of state correctional 11 facilities suitable for the detention and confinement of persons held under authority of 12 state law or under agreement entered into under (e) of this section. If the 13 commissioner determines that suitable state correctional facilities are not available, the 14 commissioner may enter into an agreement with a public or private agency to provide 01 necessary facilities, subject to the following: 02  (1) the commissioner may not enter into an agreement with a 03 public or private agency that is unable to provide a degree of custody, care, and 04 discipline to the extent required by the laws of this state; 05  (2) correctional [. CORRECTIONAL] facilities provided through 06 agreement with a public agency for the detention and confinement of persons held 07 under authority of state law may be in this state or in another state; 08  (3) correctional [. CORRECTIONAL] facilities provided through 09 agreement with a private agency 10   (A) must be located in this state unless the commissioner finds 11 in writing that 12   (i) [(1)] there is no other reasonable alternative for 13 detention in the state; and 14   (ii) [(2)] the agreement is necessary because of health 15 or security considerations involving a particular prisoner or class of 16 prisoners, or because an emergency of prisoner overcrowding is 17 imminent; 18  (B) may provide for the detention and confinement of all 19 persons held by the commissioner under authority of state law, whether 20 charged with or convicted of felonies or misdemeanors, without regard to 21 the custody classifications for prisoners as determined by the 22 commissioner, unless the security of the facility is inconsistent with those 23 custody classifications; and 24  (C) may not by regulation be restricted or limited by the 25 commissioner to use only for prisoners involved in certain rehabilitative or 26 treatment programs authorized by law. [THE COMMISSIONER MAY 27 NOT ENTER INTO AN AGREEMENT WITH AN AGENCY UNABLE TO 28 PROVIDE A DEGREE OF CUSTODY, CARE, AND DISCIPLINE SIMILAR 29 TO THAT REQUIRED BY THE LAWS OF THIS STATE.] 30 * Sec. 2. NOTICE AND APPROVAL OF LEASE-PURCHASE AGREEMENT. (a) To 31 provide for the design, construction, and operation of a new correctional facility in order to 01 relieve overcrowding of existing correctional facilities, the Department of Administration, on 02 behalf of the Department of Corrections, may enter into a lease-purchase agreement under 03 AS 33.30.031 for the design, construction, and operation of a correctional facility that will 04 house persons who are committed to the custody of the commissioner of corrections. The 05 project approval given by this subsection is subject to the conditions of (b), (c) and (d) of this 06 section and to the following limitations: 07 (1) the total construction and related costs of establishing the correctional 08 facility may not exceed $100,000,000; 09 (2) the total lease payments for the full term of the agreement may not exceed 10 $200,000,000 and the anticipated annual amount of the rental obligation to be paid by the 11 Department of Corrections under the lease must be reasonably commensurate with that total; 12 and 13 (3) at the end of the term of the lease-purchase agreement, the state shall own 14 the correctional facility. 15 (b) The correctional facility to be designed, constructed, and operated under the notice 16 and approval given in (a) of this section 17 (1) must be designed and constructed so as to house, in separate housing, 18 female prisoners and male prisoners; 19 (2) must be operated to provide a degree of custody, care, and discipline to the 20 extent required by the laws of this state, including the standards of custody, care, and 21 discipline that are required by order of a court; 22 (3) may not contain a total population of more than 1,000 prisoners, but must 23 be designed and constructed so as to allow expansion of the facility to a greater capacity; and 24 (4) may not be operated by the state except temporarily when 25  (A) the private third-party contractor with whom the state has entered 26 into an agreement to operate defaults in performance under the contract and state 27 operation is reasonably necessary to ensure the facility's continued operation; or 28  (B) the state is unable to contract with a private third-party contractor. 29 (c) The lease-purchase agreement entered into under this section shall provide for 30 (1) an agreement under which the correctional facility is designed, constructed, 31 and, except for services to prisoners described in (2) of this subsection, operated by a private 01 third-party contractor; the agreement described in this subsection is made for the purpose of 02 acquiring, improving, and maintaining the correctional facility structure under 03 AS 36.30.085(b), and is exclusive of one or more contracts for the custody, care, and 04 discipline of prisoners housed in the facility as may be authorized by AS 33.30.031(a)(1) and 05 (3); 06 (2) an agreement, separate from the agreement described in (1) of this 07 subsection, under which a private third-party contractor or agency operates the facility by 08 providing for custody, care, and discipline services for persons held by the commissioner of 09 corrections under authority of state law; the operating agreement described in this paragraph 10 shall 11  (A) for its initial period, not to exceed five years, be entered into with 12 a private third-party contractor that is the same person as the third-party contractor 13 described in (1) of this subsection; and 14  (B) for the duration of the period of the lease-purchase agreement, be 15 rebid or reoffered at intervals of not more than five years and may be entered into with 16 a contractor or agency other than the person described in (A) of this paragraph. 17 (d) In the evaluation of a bid submitted to construct and operate the correctional 18 facility described in this section, the Department of Administration may provide incentive to 19 the maker of a bid that pledges to employ state residents as far as practicable. 20 (e) If required by the commissioner of corrections as a condition of the correctional 21 facility's operation, in the award of a contract for the operation of the correctional facility to 22 be designed, constructed, and operated under the notice and approval given in (a) of this 23 section, the Department of Administration shall require that persons employed by the 24 contractor as correctional officers in the facility meet the requirements of AS 18.65.130 - 25 18.65.290 that are applicable to correctional officers. 26 (f) In the award of a contract for the operation of the correctional facility to be 27 constructed and operated under the notice and approval given in (a) of this section, the 28 Department of Administration shall require the contractor to seek, obtain, and maintain 29 accreditation of the correctional facility by the American Correctional Association. 30 (g) Subsection (a) of this section constitutes the notice and approval required by 31 AS 36.30.085. 01 * Sec. 3. CONSTRUCTION OF CORRECTIONAL FACILITY UNDER PROJECT 02 LABOR AGREEMENT. (a) The purpose of this section is to enable the state to meet its 03 obligation to improve the care and custody of the prisoners for which it is responsible at an 04 early date through the completion of construction of a major correctional facility by structuring 05 labor relations at the job site of the correctional facility in the interests of industrial harmony 06 and in a way that makes optimal use of construction resources. 07 (b) Notwithstanding any restrictions that may be applicable under AS 36.30, the 08 correctional facility described in sec. 2 of this Act may be constructed only under a public 09 construction project labor agreement between the building construction contractor and one or 10 more building trade unions; the labor agreement must provide 11 (1) a no-strike and no-slowdown pledge by the union or unions; 12 (2) a commitment on the part of the construction contractor to hire through 13 local union hiring halls; and 14 (3) a provision allowing not more than 15 percent of the construction 15 contractor's workforce on the public construction project to be composed of persons who are 16 not members of the union or unions. 17 * Sec. 4. Nothing in sec. 2 of this Act precludes operation of the correctional facility 18 described in sec. 2(a) of this Act by a private third-party contractor comprised of persons who 19 are members of labor organizations. 20 * Sec. 5. 22 AAC 05.300(e) is annulled.