CSSB 65(FIN) am: "An Act relating to the qualifications of correctional officers, parole officers, and probation officers; authorizing the Department of Corrections to enter into lease-purchase agreements with municipalities for new or expanded public correctional facilities in the Fairbanks North Star Borough, the Matanuska-Susitna Borough, Bethel, the Municipality of Anchorage, and the City of Seward; relating to the development and financing of privately operated correctional facility space and services; authorizing the Department of Corrections to enter into a lease-purchase agreement with the City of Whittier for the confinement and care of prisoners in privately operated correctional facility space if the state cannot provide the same level of services required in state law or regulation for the same or less cost; giving notice of and approving, and authorizing the entry into and issuance of certificates of participation for, the upgrade, expansion, and replacement of certain jails in Dillingham and Kodiak; and providing for an effective date."
00 CS FOR SENATE BILL NO. 65(FIN) am 01 "An Act relating to the qualifications of correctional officers, parole officers, and 02 probation officers; authorizing the Department of Corrections to enter into lease- 03 purchase agreements with municipalities for new or expanded public correctional 04 facilities in the Fairbanks North Star Borough, the Matanuska-Susitna Borough, Bethel, 05 the Municipality of Anchorage, and the City of Seward; relating to the development and 06 financing of privately operated correctional facility space and services; authorizing the 07 Department of Corrections to enter into a lease-purchase agreement with the City of 08 Whittier for the confinement and care of prisoners in privately operated correctional 09 facility space if the state cannot provide the same level of services required in state law 10 or regulation for the same or less cost; giving notice of and approving, and authorizing 11 the entry into and issuance of certificates of participation for, the upgrade, expansion, 12 and replacement of certain jails in Dillingham and Kodiak; and providing for an
01 effective date." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 18.65.290(2) is amended to read: 04 (2) "correctional officer" means a person 05 (A) appointed by the commissioner of corrections whose 06 primary duty under AS 33.30 is to provide custody, care, security, control, and 07 discipline of persons charged or convicted of offenses against the state or held 08 under authority of state law; or 09 (B) employed in a correctional facility in this state whose 10 primary duty is to provide custody, care, security, control, and discipline 11 of persons charged or convicted of offenses or held under authority of law; 12 * Sec. 2. AS 18.65.290(5) is amended to read: 13 (5) "parole officer" means a person appointed by the commissioner of 14 corrections or employed by a correctional facility in this state to perform the duties 15 of supervising the parole of prisoners under AS 33.16; 16 * Sec. 3. AS 18.65.290(7) is amended to read: 17 (7) "probation officer" means a person appointed by the commissioner 18 of corrections or employed by a correctional facility in this state to perform the 19 duties of a probation officer under AS 33.05. 20 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 21 read: 22 AUTHORIZATION TO LEASE CORRECTIONAL FACILITY SPACE WITH 23 MUNICIPALITIES. (a) To relieve overcrowding of existing correctional facilities in the 24 state and the extensive use of out-of-state correctional facilities, the Department of 25 Corrections, not later than July 1, 2009, may enter into lease-purchase agreements with the 26 following municipalities for new or expanded correctional facilities: 27 (1) Fairbanks North Star Borough - expansion of existing facility by up to 80 28 beds; 29 (2) Matanuska-Susitna Borough - construction of new facility with a minimum 30 of 1,200 beds up to a maximum of 2251 beds;
01 (3) Bethel - expansion of existing facility by up to 120 beds; 02 (4) Municipality of Anchorage - expansion of Anchorage Jail by up to 200 03 beds; 04 (5) City of Seward - expansion of existing Spring Creek Correctional Center 05 by up to 144 beds. 06 (b) The authorizations given by (a) of this section are subject to the following 07 conditions: 08 (1) the average capital cost for all beds may not exceed $135,000 a bed for 09 (a)(1), (2), (4), and (5) of this section and $155,000 a bed for (a)(3) of this section, adjusted 10 for inflation each year at a rate equal to the percentage increase in the Consumer Price Index 11 for urban wage earners and clerical workers for Anchorage, Alaska, during the previous 12 calendar year as determined by the Bureau of Labor Statistics, United States Department of 13 Labor; 14 (2) if construction of a new facility is authorized, the municipality shall 15 initially own the facility, and the state may enter into a long-term lease-purchase agreement 16 not to exceed 25 years with the municipality to operate the facility and the state to own the 17 facility at the end of the lease term; the annual lease payment for a new facility may not 18 exceed $11,600 a bed; 19 (3) if expansion of an existing facility is authorized, the state shall enter into a 20 joint ownership agreement with the municipality of the expanded facility, enter into a long- 21 term lease-purchase agreement not to exceed 25 years of the municipality's interest in the 22 facility, and operate the facility and own the facility at the end of the term of the agreement; 23 payments under the lease-purchase agreement may not exceed $16,700 a bed for the Bethel 24 facility and $14,600 a bed for the Fairbanks, Anchorage, and Seward facilities; 25 (4) the agreement to lease-purchase must contain terms providing that the 26 commissioner of corrections may terminate for cause any contract for operating the facility; 27 (5) the commissioner may not enter into an agreement under (a) of this section 28 if any bonds issued for projects under (a) of this section are rated below investment grade. 29 (c) The authorization given by (a)(4) of this section is subject to the following 30 condition: expansion of the facility may only occur if the expansion is funded by up to 31 $30,000,000 in federal receipts.
01 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 02 read: 03 AUTHORIZATION TO CONTRACT FOR CORRECTIONAL FACILITY SPACE 04 AND SERVICES WITH THIRD-PARTY CONTRACTOR FOR OPERATION. (a) The 05 Department of Corrections, not later than July 1, 2006, is authorized to enter into a lease- 06 purchase agreement with the City of Whittier for the purpose of acquiring correctional facility 07 space for a term not to exceed 25 years and services for contractual periods of not greater than 08 five years for persons who are committed to the custody of the commissioner of corrections. 09 Before entering into any contract for correctional space or services with the City of Whittier 10 under this section, the Departments of Corrections and Administration shall first conduct a 11 feasibility study to determine whether the state can provide the same level of services required 12 in state law or regulation for the same or less cost than a third-party operator. An agreement 13 may be entered into under this section only if the feasibility study determines that the state 14 cannot provide the same level of services required in state law or regulation for the same or 15 less cost. 16 (b) The lease-purchase agreement entered into under this section is predicated on and 17 must provide for an agreement between the City of Whittier and one or more private third- 18 party contractors under which private, for profit or nonprofit third-party contractors construct 19 and operate the facility by providing for custody, care, and discipline services for persons 20 committed to the custody of the commissioner of corrections under authority of state law. 21 The state shall own the facility at the end of the term of the lease-purchase agreement. In an 22 agreement with the City of Whittier, the commissioner of corrections shall require that the 23 city procure one or more private third-party operators through a competitive bid process. The 24 City of Whittier shall follow state procurement procedures for procurement of land, design, 25 construction, and operation of a facility. The commissioner of corrections shall approve the 26 facility design before entering into an agreement. 27 (c) The authorization given by (a) of this section is subject to the following 28 conditions: 29 (1) the agreement must cover a minimum of 1200 beds and a maximum of 30 2,251 prison beds, and, subject to (2) of this subsection, the payments by the Department of 31 Corrections must be sufficient to cover all capital and operating costs, not including inmate
01 transportation, based on per diem operating charges for a minimum 1,200 prison beds; 02 (2) the agreement must provide that the obligation of the Department of 03 Corrections to make payments under the agreement is subject to annual appropriation of funds 04 by the legislature; 05 (3) the agreement must contain terms providing that the commissioner of 06 corrections may direct the City of Whittier, after notice and reasonable opportunity to cure, to 07 terminate its contract with a private third-party contractor operating the facility in accordance 08 with the provisions of (b) of this section, and to procure a replacement third-party contractor 09 if the commissioner finds that the private third-party contractor has failed to provide or cause 10 to be provided the degree of custody, care, and discipline required by terms of the agreement 11 and that the private third-party contractor has been given notice and reasonable opportunity to 12 cure as provided in the third-party contractor's agreement with the city; 13 (4) the commissioner's authority to enter into the agreement is subject to the 14 condition that the contract between the City of Whittier and the operator requires the operator 15 to provide culturally relevant reformation services to incarcerated Alaska Natives; 16 (5) the commissioner may not enter into the agreement if any bonds issued for 17 the project are rated below investment grade. 18 (d) Nothing in this section is intended to prevent the City of Whittier from issuing 19 bonds as permitted for municipalities under state law, including AS 29.47.390, to finance 20 construction of the facility. The bonds may be secured by and payable from revenues of the 21 facility, including those described in (c) of this section. Revenues of the facility are not 22 revenues of the City of Whittier for purposes of AS 29.47.390. 23 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 NOTICE OF THE ISSUANCE OF CERTIFICATES OF PARTICIPATION AND 26 OTHER FINANCING. (a) The state bond committee is authorized to provide for the 27 issuance of certificates of participation in one or more series in the aggregate principal 28 amount of $4,000,000, plus costs of required reserves and costs of issuance, to pay for the 29 costs for expansion of municipal jails described in sec. 7 of this Act. The estimated total cost 30 of construction, acquisition, and equipping the projects is $4,000,000, which shall be paid 31 from the proceeds of the certificates of participation issued under this section. The estimated
01 aggregate annual amount of rental obligations under the lease-financing agreements is 02 $400,000. The total payments for the full term of the certificates of participation are 03 estimated to be $6,000,000. In this subsection, "cost of construction" includes credit 04 enhancement and underwriting expenses, rating agency fees, bond counsel fees, financial 05 advisor fees, printing fees, trustee fees, advertising fees, capitalized interest, interest earnings 06 used for lease payments, and other costs of issuance, and costs of required reserves. 07 (b) The state bond committee may contract for credit enhancement, underwriting, 08 credit ratings, bond counsel, financial advisor, printing, advertising fees, and trustee services 09 that the committee considers necessary in financing the projects described in sec. 7 of this 10 Act. 11 (c) The state bond committee may not authorize the issuance of certificates of 12 participation as provided in (a) of this section if the issuance lowers the state's credit and the 13 certificates are rated below investment grade. 14 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 15 read: 16 MUNICIPAL JAIL FACILITIES. (a) Each of the following projects is approved to 17 receive $2,000,000 of the proceeds of the certificates of participation authorized under sec. 6 18 of this Act, on condition that the municipality in which the project is located contributes a 19 matching share of at least $1,500,000, to be used for the upgrade, expansion, or replacement 20 of the jail facilities: 21 (1) Dillingham Community Jail in the Municipality of Dillingham to replace 22 the existing 8-bed facility with a new 25-bed facility; 23 (2) Kodiak Community Jail in the Municipality of Kodiak to replace the 24 existing 16-bed facility with a new 22-bed facility. 25 (b) Subject to appropriation, the Department of Corrections is authorized to pay the 26 annual operating costs associated with the addition of new beds at the municipal jail facilities 27 to the municipalities listed in (a) of this section. The anticipated annual operating costs for 28 the new beds authorized in (a) of this section are: 29 (1) Dillingham Community Jail - $750,000 (17 new beds); 30 (2) Kodiak Community Jail - $188,000 (6 new beds). 31 * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to
01 read: 02 APPROVAL. This Act constitutes the notice and approval of the projects described in 03 secs. 1 - 5 of this Act required by AS 36.30.085. 04 * Sec. 9. Sections 1 - 3, ch. 32, SLA 2001, are repealed. 05 * Sec. 10. This Act takes effect July 1, 2004.