SCS CSHB 149(FIN): "An Act expressing legislative intent regarding correctional facility space; relating to correctional facility space; authorizing the Department of Corrections to enter into an agreement to lease facilities for the confinement and care of prisoners within the Kenai Peninsula Borough; and providing for an effective date."
00 SENATE CS FOR CS FOR HOUSE BILL NO. 149(FIN) 01 "An Act expressing legislative intent regarding correctional facility space; relating to 02 correctional facility space; authorizing the Department of Corrections to enter into an 03 agreement to lease facilities for the confinement and care of prisoners within the Kenai 04 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 procurement process. A municipality exercising its powers under 25 AS 29.35.010(15) for procurement of land, design, construction, and operation of a facility, 26 that follows its municipal ordinances and resolutions and procurement procedures, satisfies 27 the procurement requirements of this subsection. 28 (c) The authorization given by (a) of this section is subject to the following 29 conditions: 30 (1) the lease must have a minimum of 800 prison beds, and the lease payments 31 must be sufficient to cover
01 (A) the cost for the development and construction of the facility; and 02 (B) the operating costs for a minimum of 800 prison beds in the 03 facility for a period of five years, less a reasonable period to achieve full occupancy; 04 (2) the agreement to lease must contain terms providing that the commissioner 05 of corrections may direct the Kenai Peninsula Borough to terminate its contract with a private 06 third-party contractor operating the facility in accordance with the provisions of (b) of this 07 section if the commissioner finds that the private third-party contractor has failed to provide 08 or cause to be provided the degree of custody, care, and discipline required by terms of the 09 lease agreement; 10 (3) the commissioner may not enter into the lease if the commissioner finds 11 that the Kenai Peninsula Borough is unable to provide or cause to be provided a degree of 12 custody, care, and discipline similar to that required by the laws of the state. 13 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 14 read: 15 APPLICABILITY. The provisions of AS 33.30.031(a) do not apply to an agreement 16 to lease a correctional facility in accordance with the provisions of sec. 2 of this Act. This 17 applicability section does not affect the authority of the commissioner of corrections to 18 designate the correctional facility to which a prisoner is assigned. 19 * Sec. 4. Section 4, ch. 15, SLA 1998, and sec. 6, ch. 35, SLA 1999, are repealed. 20 * Sec. 5. This Act takes effect June 1, 2001.