SSHB 55: "An Act expressing legislative intent regarding privately operated correctional facility space and services; relating to the development and financing of privately operated correctional facility space and services; authorizing the Department of Corrections to enter into an agreement for the confinement and care of prisoners in privately operated correctional facility space; authorizing the Department of Corrections to enter into agreements with municipalities to expand existing correctional facilities; and providing for an effective date."
00 SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 55 01 "An Act expressing legislative intent regarding privately operated correctional facility 02 space and services; relating to the development and financing of privately operated 03 correctional facility space and services; authorizing the Department of Corrections to 04 enter into an agreement for the confinement and care of prisoners in privately operated 05 correctional facility space; authorizing the Department of Corrections to enter into 06 agreements with municipalities to expand existing correctional facilities; and providing 07 for an effective date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 10 to read: 11 LEGISLATIVE INTENT. It is the intent of the legislature in sec. 2 of this Act to 12 secure additional correctional facility space and services through a privately operated 13 correctional facility in Alaska. The legislature expects the Department of Corrections to
01 contract with the City of Whittier for privately operated correctional facility space and 02 services similar to those currently acquired for medium-custody and close-custody Alaska 03 prisoners in a privately operated prison outside the state. The legislature anticipates a 04 privately operated correctional facility will bring competitive management styles and 05 operations to Alaska. 06 * Sec. 2. The uncodified law of the State of Alaska is amended by adding a new section to 07 read: 08 AUTHORIZATION TO CONTRACT FOR CORRECTIONAL FACILITY SPACE 09 AND SERVICES WITH THIRD-PARTY CONTRACTOR FOR OPERATION. (a) The 10 Department of Corrections is authorized to enter into an agreement with the City of Whittier 11 for the purpose of acquiring correctional facility space and services for a minimum of 25 12 years for persons who are committed to the custody of the commissioner of corrections. 13 (b) The agreement entered into under this section is predicated on and must provide 14 for an agreement between the City of Whittier and one or more private third-party contractors 15 under which private, for profit or nonprofit third-party contractors construct and operate the 16 facility by providing for custody, care, and discipline services for persons committed to the 17 custody of the commissioner of corrections under authority of state law. In the agreement 18 with the City of Whittier, the commissioner of corrections shall require that the city procure 19 one or more private third-party operators through a competitive bid process. The procurement 20 requirements of this subsection are satisfied if the City of Whittier, in exercise of its powers 21 under AS 29.35.010(15) for procurement of land, design, construction, and operation of a 22 facility, follows its municipal ordinances and resolutions and procurement procedures. 23 (c) The authorization given by (a) of this section is subject to the following 24 conditions: 25 (1) the agreement must cover a minimum of 1,200 prison beds, and, subject to 26 (2) of this subsection, the payments by the Department of Corrections 27 (A) may not exceed a total per diem cost of $94 an inmate a day or 85 28 percent of the inmate cost per day to the state for the construction and operation by the 29 state of equivalent facilities; the per diem cost shall be adjusted for 30 (i) changes in the cost of living from the effective date of this 31 Act until the facility opens;
01 (ii) costs not incurred until full occupancy; 02 (B) must be sufficient to cover 03 (i) a capital component consisting of the cost for the 04 development and construction of the facility, including all debt service; and 05 (ii) an operating component consisting of the operating costs, 06 not including inmate transportation, based on per diem operating charges for a 07 minimum 1,200 prison beds; 08 (2) the agreement must provide that the obligation of the Department of 09 Corrections to make payments under the agreement is subject to annual appropriation of funds 10 by the legislature; 11 (3) the agreement must contain terms providing that the commissioner of 12 corrections may direct the City of Whittier, after notice and reasonable opportunity to cure, to 13 terminate its contract with a private third-party contractor operating the facility in accordance 14 with the provisions of (b) of this section, and to procure a replacement third-party contractor 15 if the commissioner finds that the private third-party contractor has failed to provide or cause 16 to be provided the degree of custody, care, and discipline required by terms of the agreement 17 and that the private third-party contractor has been given notice and reasonable opportunity to 18 cure as provided in the third-party contractor's agreement with the City of Whittier; 19 (4) the commissioner's authority to enter into the agreement is subject to the 20 condition that the contract between the city and the operator requires the operator to provide 21 culturally relevant reformation services to incarcerated Alaska Natives. 22 (d) Nothing in this section is intended to prevent the City of Whittier from issuing 23 bonds as permitted for municipalities under state law, including AS 29.47.390, to finance 24 construction of the facility. The bonds may be secured by and payable from revenues of the 25 facility, including those described in (c) of this section. Revenues of the facility are not 26 revenues of the City of Whittier for purposes of AS 29.47.390. 27 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 28 read: 29 AUTHORIZATION TO LEASE CORRECTIONAL FACILITY SPACE WITH 30 MUNICIPALITIES. (a) To relieve overcrowding of existing correctional facilities in the 31 state, the Department of Corrections may enter into agreements with the following
01 municipalities for expanded correctional facilities: 02 (1) Fairbanks North Star Borough - expansion of the existing Fairbanks 03 Correctional Center by up to 100 beds; 04 (2) Matanuska-Susitna Borough - expansion of the existing Mat-Su Pre-trial 05 Facility by up to 107 beds; 06 (3) Bethel - expansion of the existing Yukon Kuskokwim Correctional Center 07 by up to 96 beds; 08 (4) Seward - expansion of the existing Spring Creek Correctional Center by up 09 to 150 beds. 10 (b) The authorizations given by (a) of this section are subject to the following 11 conditions: 12 (1) the average capital costs for all beds may not exceed $155,000 a bed, 13 adjusted for inflation at the rate of three percent a year from the effective date of this Act; 14 (2) if expansion of an existing facility is authorized, the state shall enter into a 15 joint ownership agreement with the municipality of the expanded facility, enter onto a long- 16 term lease not to exceed 25 years of the municipality's interest in the facility, and operate the 17 facility; payments under the lease may not exceed $16,700 a bed. 18 * Sec. 4. Sections 1 - 3, ch. 32, SLA 2001, are repealed. 19 * Sec. 5. This Act takes effect July 1, 2003.