00                      CS FOR HOUSE BILL NO. 149(FIN)                                                                    
01 "An Act expressing legislative intent without the force of law regarding correctional                                   
02 facility space; relating to correctional facility space; authorizing the Department of                                  
03 Corrections to enter into an agreement to lease facilities for the confinement and care of                              
04 prisoners within the Kenai Peninsula Borough; and providing for an effective date."                                     
05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
06    * Section 1.  The uncodified law of the State of Alaska is amended by adding a new section                         
07 to read:                                                                                                                
08       LEGISLATIVE INTENT.  It is the intent of the legislature to secure additional                                     
09 correctional facility space through a privately operated correctional facility in Alaska.  The                          
10 legislature expects the Department of Corrections to contract with the Kenai Peninsula                                  
11 Borough for private prison services similar to those currently purchased for medium-security                            
12 Alaska prisoners in a private prison outside the state.  The legislature anticipates a privately                        
13 operated correctional facility will bring competitive management styles and operations to                               
14 Alaska.  The legislature expects that the initial per diem cost at a private facility (excluding                        

01 costs related to major medical, prescription medication, and transportation of prisoners and                            
02 other services excluded in contracts for Alaska prisoner care and custody in private facilities                         
03 outside the state but including the capital costs for construction of the facility, including debt                      
04 service) will be 18 - 20 percent less than the current average per diem rate for all state                              
05 facilities as reported to the federal government for reimbursement purposes; should be                                  
06 approximately $89 in current dollars; and, from the passage of this Act, should be adjusted                             
07 annually for changes in the cost of operations as measured by an appropriate cost-of-living                             
08 index.                                                                                                                  
09    * Sec. 2.  The uncodified law of the State of Alaska is amended by adding a new section to                         
10 read:                                                                                                                   
11       AUTHORIZATION TO LEASE CORRECTIONAL FACILITY SPACE WITH                                                           
12 THIRD-PARTY CONTRACTOR OPERATION.  (a)  The Department of Corrections may                                               
13 enter into an agreement with the Kenai Peninsula Borough to lease space within a correctional                           
14 facility located within the Kenai Peninsula Borough that will house persons who are                                     
15 committed to the custody of the commissioner of corrections.  The agreement must provide                                
16 that the state agrees to lease the space for a minimum of 20 years.                                                     
17       (b)  The agreement to lease entered into under this section is predicated on and must                             
18 provide for an agreement between the Kenai Peninsula Borough and one or more private                                    
19 third-party contractors under which private, for profit or nonprofit third-party contractors                            
20 construct and operate the facility by providing for custody, care, and discipline services for                          
21 persons held by the commissioner of corrections under authority of state law.  The                                      
22 commissioner of corrections shall require in the agreement with the Kenai Peninsula Borough                             
23 that the Kenai Peninsula Borough procure one or more private third-party operators through a                            
24 competitive process similar to the procedures established in AS 36.30 (State Procurement                                
25 Code).  The adoption, by the Kenai Peninsula Borough exercising its powers under                                        
26 AS 29.35.010(15), of Ordinance No. 2000-59, for procurement of land, design, construction,                              
27 and operation of a facility on a request-for-qualification basis satisfies the procurement                              
28 requirements of this subsection.                                                                                        
29       (c)  The authorization given by (a) of this section is subject to the following                                   
30 conditions:                                                                                                             
31            (1)  the lease must have a minimum of 800 prison beds, and the lease payments                                

01 must be sufficient to cover                                                                                             
02                 (A)  the cost for the development and construction of the facility; and                                 
03                 (B)  the operating costs for a minimum of 800 prison beds in the                                        
04       facility.                                                                                                         
05            (2)  the agreement to lease must contain terms providing that the commissioner                               
06 of corrections may direct the Kenai Peninsula Borough to terminate its contract with a private                          
07 third-party contractor operating the facility in accordance with the provisions of (b) of this                          
08 section if the commissioner finds that the private third-party contractor has failed to provide                         
09 or cause to be provided the degree of custody, care, and discipline required by terms of the                            
10 lease agreement;                                                                                                        
11            (3)  the commissioner may not enter into the lease if the commissioner finds                                 
12 that the Kenai Peninsula Borough is unable to provide or cause to be provided a degree of                               
13 custody, care, and discipline similar to that required by the laws of the state.                                        
14    * Sec. 3.  The uncodified law of the State of Alaska is amended by adding a new section to                         
15 read:                                                                                                                   
16       APPLICABILITY.  The provisions of AS 33.30.031(a) do not apply to an agreement                                    
17 to lease a correctional facility in accordance with the provisions of sec. 2 of this Act.  This                         
18 applicability section does not affect the authority of the commissioner of corrections to                               
19 designate the correctional facility to which a prisoner is assigned.                                                    
20    * Sec. 4.  Section 4, ch. 15, SLA 1998, and sec. 6, ch. 35, SLA 1999, are repealed.                                
21    * Sec. 5.  This Act takes effect June 1, 2001.