00                            SENATE BILL NO. 231                                                                         
01 "An Act relating to correctional facilities."                                                                           
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1.  The uncodified law of the State of Alaska is amended by adding a new section                         
04 to read:                                                                                                                
05       AUTHORIZATION TO LEASE CORRECTIONAL FACILITY SPACE WITH                                                           
06 MUNICIPALITIES.  (a)  To relieve overcrowding of existing correctional facilities in the                                
07 state and the extensive use of out-of-state correctional facilities, the Department of                                  
08 Corrections may enter into agreements with the following municipalities for new or expanded                             
09 correctional facilities:                                                                                                
10            (1)  Fairbanks North Star Borough - expansion of existing facility by up to 100                              
11 beds;                                                                                                                   
12            (2)  Matanuska-Susitna Borough - expansion of existing facility by up to 370                                 
13 beds;                                                                                                                   
14            (3)  City and Borough of Juneau - expansion of existing facility by up to 64                                 
15 beds;                                                                                                                   

01            (4)  Bethel - expansion of existing facility by up to 96 beds;                                               
02            (5)  Ketchikan Gateway Borough - expansion of existing facility by up to 100                                 
03 beds or construction of new facility with up to 100 beds;                                                               
04            (6)  Seward - expansion of existing facility by up to 150 beds;                                              
05            (7)  Kenai Peninsula Borough - expansion of existing facility by up to 256                                   
06 beds.                                                                                                                   
07       (b)  The authorizations given by (a) of this section are subject to the following                                 
08 conditions:                                                                                                             
09            (1)  the average capital cost for all beds may not exceed $155,000 a bed,                                    
10 adjusted for inflation at the rate of three percent a year from the effective date of this Act;                         
11            (2)  if construction of a new facility is authorized, the municipality shall own                             
12 the facility, and the state may enter into a long-term lease not to exceed 20 years with the                            
13 municipality to operate the facility; the annual lease payment for a new facility may not                               
14 exceed $16,700 a bed;                                                                                                   
15            (3)  if expansion of an existing facility is authorized, the state shall enter into a                        
16 joint ownership agreement with the municipality of the expanded facility, enter into a long-                            
17 term lease not to exceed 20 years of the municipality's interest in the facility, and operate the                       
18 facility; payments under the lease may not exceed the amount listed in (2) of this subsection;                          
19            (4)  the agreement to lease must contain terms providing that the commissioner                               
20 of corrections may terminate for cause any contract for operating the facility.