Legislature(1995 - 1996)

1996-03-13 House Journal

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1996-03-13                     House Journal                      Page 3115
HB 428                                                                       
The following was read the second time:                                        
                                                                               
HOUSE BILL NO. 428                                                            
An Act giving notice of and approving a lease-purchase                        
agreement for construction and operation of a correctional facility            
in the Third Judicial District, and setting conditions and limitations         
on the facility's construction and operation.                                  
                                                                               
with the:                                                 Journal Page         
                                                                               
	JUD RPT  CS(JUD) NT 3DP 2DNP 1NR                                 2625         
	3 FISCAL NOTES (DOT, COR, ADM)                                   2626         
	ZERO FISCAL NOTE (REV)                                           2626         
	FIN RPT  CS(FIN) NT 4DP 3DNP 2NR                                 2958         
	FISCAL NOTE (COR)                                                2959         
	ZERO FISCAL NOTE (REV) 2/5/96                                    2959         
                                                                               
**The presence of Representatives Finkelstein and Hanley was noted.            
                                                                               
Representative Vezey moved and asked unanimous consent that the                
following committee substitute be adopted in lieu of the original bill:        
                                                                               
CS FOR HOUSE BILL NO. 428(FIN)                                                
An Act relating to the authority of the Department of Corrections             
to contract for facilities for the confinement and care of prisoners,          
and annulling a regulation of the Department of Corrections that               
limits the purposes for which an agreement with a private agency               
may be entered into; and giving notice of and approving a lease-               
purchase agreement for the design, construction, and operation of              
a correctional facility in the Third Judicial District, and setting            
conditions and limitations on the facility's design, construction,             
and operation.                                                                 
                                                                               
There being no objection, it was so ordered.                                   

1996-03-13                     House Journal                      Page 3116
HB 428                                                                       
Amendment No. 1 was offered by Representative Therriault:                      
                                                                               
Page 1, line 6 (title amendment):                                              
	Delete "in the Third Judicial District"                                     
                                                                               
Page 3, line 5:                                                                
	Delete "in the Third Judicial District"                                       
                                                                               
Representative Therriault moved and asked unanimous consent that               
Amendment No. 1 be adopted.  There being no objection, it was so               
ordered, and the new title appears below:                                      
                                                                               
CS FOR HOUSE BILL NO. 428(FIN) am                                             
An Act relating to the authority of the Department of Corrections             
to contract for facilities for the confinement and care of prisoners,          
and annulling a regulation of the Department of Corrections that               
limits the purposes for which an agreement with a private agency               
may be entered into; and giving notice of and approving a lease-               
purchase agreement for the design, construction, and operation of              
a correctional facility, and setting conditions and limitations on the         
facilitys design, construction, and operation.                                 
                                                                               
                                                                               
Amendment No. 2 was offered by Representative Mulder:                          
                                                                               
Page 3, lines 3 - 4:                                                           
	Delete "with a private third-party contractor"                                
                                                                               
Page 3, line 7, following "(b)":                                               
	Insert "and (c)"                                                              
                                                                               
Page 3, following line 27:                                                     
	Insert a new subsection to read:                                              
	"(c)  The lease-purchase agreement entered into under this section            
shall provide for                                                              
		(1)  an agreement under which the correctional facility is                   
designed, constructed, and, except for services to prisoners described         
in (2) of this subsection, operated by a private third-party contractor;       
the agreement described in this subsection is made for the purpose of          
                                                                               

1996-03-13                     House Journal                      Page 3117
HB 428                                                                       
acquiring, improving, and maintaining the correctional facility structure      
under  AS36.30.085(b), and is exclusive of one or more contracts for           
the custody, care, and discipline of prisoners housed in the facility as       
may be authorized by AS33.30.031(a)(1) and (3);                                
                                                                               
		(2)  an agreement, separate from the agreement described in                  
(1) of this subsection, under which a private third-party contractor or        
agency operates the facility by providing for custody, care, and               
discipline services for persons held by the commissioner of corrections        
under authority of state law; the operating agreement described in this        
paragraph shall                                                                
		(A)  for its initial period, not to exceed five years, be                   
entered into with a private third-party contractor that is the same            
person as the third-party contractor described in (1) of this                  
subsection; and                                                                
		(B)  for the duration of the period of the lease-purchase                   
agreement, be rebid or reoffered at intervals of not more than five            
years and may be entered into with a contractor or agency other                
than the person described in (A) of this paragraph."                           
                                                                               
Reletter the following subsections accordingly.                                
                                                                               
Representative Mulder moved and asked unanimous consent that                   
Amendment No. 2 be adopted.                                                    
                                                                               
Representative Brown objected.                                                 
                                                                               
                                                                               
Amendment to Amendment No. 2 was offered by Representative                     
Brown:                                                                         
                                                                               
Under Page 3, following line 27 of the amendment:                              
	Delete "(c)  The lease-purchase agreement entered into under this             
section shall provide for                                                      
		(1)  an agreement under which the correctional facility is                   
designed, constructed, and, except for services to prisoners described         
in (2) of this subsection, operated by a private third-party contractor;       
the agreement described in this subsection is made for the purpose of          
acquiring, improving, and maintaining the correctional facility structure      
                                                                               

1996-03-13                     House Journal                      Page 3118
HB 428                                                                       
under  AS36.30.085(b), and is exclusive of one or more contracts for           
the custody, care, and discipline of prisoners housed in the facility as       
may be authorized by AS33.30.031(a)(1) and (3);                                
		(2)  an agreement, separate from the agreement described in                  
(1) of this subsection, under which a private third-party contractor or        
agency operates the facility by providing for custody, care, and               
discipline services for persons held by the commissioner of corrections        
under authority of state law; the operating agreement described in this        
paragraph shall                                                                
                                                                               
		(A)  for its initial period, not to exceed five years, be                   
entered into with a private third-party contractor that is the same            
person as the third-party contractor described in (1) of this                  
subsection; and                                                                
		(B)  for the duration of the period of the lease-purchase                   
agreement, be rebid or reoffered at intervals of not more than five            
years and may be entered into with a contractor or agency other                
than the person described in (A) of this paragraph."                           
                                                                               
	Insert "(c)  The lease-purchase agreement entered into under this             
section must provide for                                                       
		(1)  an agreement under which the correctional facility is                   
designed and  constructed by a private third-party contractor; the             
agreement described in this subsection is made for the purpose of              
acquiring the correctional facility within the meaning of                      
AS36.30.085(b), and is exclusive of one or more contracts for the              
custody, care, and discipline of prisoners housed in the facility as may       
be authorized by AS33.30.031(a)(1) and (3);                                    
		(2)  an agreement, separate from the agreement described in                  
(1) of this subsection, under which a private third-party contractor or        
agency operates the facility by providing for the custody, care, and           
disciplinary services for persons held by the commissioner under               
authority of state law, and maintains the correctional facility; the           
operating agreement described in this paragraph shall be rebid or              
reoffered at intervals of not more than five years."                           
                                                                               
Representative Brown moved and asked unanimous consent that the                
amendment to Amendment No. 2 be adopted.                                       
                                                                               
Representative Mulder objected.                                                

1996-03-13                     House Journal                      Page 3119
HB 428                                                                       
The question being:  Shall the amendment to Amendment No. 2 be                 
adopted?  The roll was taken with the following result:                        
                                                                               
CSHB 428(FIN) am                                                               
Second Reading                                                                 
Amendment to Amendment No. 2                                                   
                                                                               
YEAS:  12   NAYS:  24   EXCUSED:  2   ABSENT:  2                             
                                                                               
Yeas:  Brice, Brown, Davies, Elton, Finkelstein, Grussendorf, Kubina,          
Long, Mackie, Navarre, Robinson, Willis                                        
                                                                               
Nays:  Austerman, Barnes, Bunde, G.Davis, Foster, Green, Hanley,               
Ivan, James, Kelly, Kohring, Kott, Martin, Moses, Mulder, Parnell,             
Phillips, Porter, Rokeberg, Sanders, Therriault, Toohey, Vezey,                
Williams                                                                       
                                                                               
Excused:  B.Davis, Nicholia                                                    
                                                                               
Absent:  Masek, Ogan                                                           
                                                                               
And so, the amendment to Amendment No. 2 was not adopted.                      
                                                                               
Representative Toohey placed a call of the House.                              
                                                                               
The call was satisfied.                                                        
                                                                               
Objection to Amendment No. 2 was withdrawn.  There being no                    
further objection, Amendment No. 2 was adopted.                                
                                                                               
                                                                               
Amendment No. 3 was offered by Representative Mulder:                          
                                                                               
Page 3, line 22, following "capacity;":                                        
	Insert a new paragraph to read:                                               
		"(3)  may not be constructed for operation by a third-party                  
contractor under the authority given in this Act unless, before                
commencing construction planning, the commissioner of corrections              
first evaluates the proposed facility and the evaluation demonstrates          
that operation of the correctional facility described in (a) of this section   
will achieve a saving to the state of at least 10 percent when compared        
                                                                               

1996-03-13                     House Journal                      Page 3120
HB 428                                                                       
to the estimated average cost per day to operate all state correctional        
facilities by the Department of Corrections; for purposes of this              
paragraph, the estimated average cost per day to operate all state             
correctional facilities is the amount determined under the formula in          
use on the effective date of this Act by which the Department of               
Corrections computes and determines the average daily rate at which            
to invoice the United States government for the care and custody of a          
federal prisoner held in a state correctional facility;"                       
                                                                               
Renumber the following paragraph accordingly.                                  
                                                                               
Representative Mulder moved and asked unanimous consent that                   
Amendment No. 3 be adopted.                                                    
                                                                               
Representative Brown objected.                                                 
                                                                               
Amendment to Amendment No. 3 was offered by Representative                     
Brown:                                                                         
                                                                               
Under paragraph (3) of the amendment, following operation by:                  
	Delete "a third-party contractor under the authority given in this            
Act unless, before commencing construction planning, the                       
commissioner of corrections first evaluates the proposed facility and          
the evaluation demonstrates that operation of the correctional facility        
described in (a) of this section will achieve a saving to the state of at      
least 10 percent when compared to the estimated average cost per day           
to operate all state correctional facilities by the Department of              
Corrections; for purposes of this paragraph, the estimated average cost        
per day to operate all state correctional facilities is the amount             
determined under the formula in use on the effective date of this Act          
by which the Department of Corrections computes and determines the             
average daily rate at which to invoice the United States government for        
the care and custody of a federal prisoner held in a state correctional        
facility;"                                                                     
	Insert "a contractor under the authority given in this Act unless,            
before the commissioner of administration enters into a contract for           
operation of a facility under the authority given in this section, the         
contractor convincingly demonstrates to the commissioner of                    
corrections that the contractor can                                            
		(A)  operate the facility and provide the services required                 
by this section and in the proposed contract; and                              

1996-03-13                     House Journal                      Page 3121
HB 428                                                                       
		(B)  realize at least a five percent savings over the                       
projected cost to the state if the state were to operate the facility          
and provide the service."                                                      
                                                                               
Representative Brown moved and asked unanimous consent that the                
amendment to Amendment No. 3 be adopted.                                       
                                                                               
Representative Mulder objected.                                                
                                                                               
The Speaker invoked Section 102 of Masons Manual.                              
                                                                               
The question being:  Shall the amendment to Amendment No. 3 be                 
adopted?  The roll was taken with the following result:                        
                                                                               
CSHB 428(FIN) am                                                               
Second Reading                                                                 
Amendment to Amendment No. 3                                                   
                                                                               
YEAS:  15   NAYS:  23   EXCUSED:  2   ABSENT:  0                             
                                                                               
Yeas:  Brice, Brown, Bunde, Davies, Elton, Finkelstein, Grussendorf,           
Kott, Kubina, Long, Mackie, Masek, Navarre, Robinson, Willis                   
                                                                               
Nays:  Austerman, Barnes, G.Davis, Foster, Green, Hanley, Ivan,                
James, Kelly, Kohring, Martin, Moses, Mulder, Ogan, Parnell, Phillips,         
Porter, Rokeberg, Sanders, Therriault, Toohey, Vezey, Williams                 
                                                                               
Excused:  B.Davis, Nicholia                                                    
                                                                               
Masek changed from "Nay" to "Yea".                                             
                                                                               
                                                                               
And so, the amendment to Amendment No. 3 was not adopted.                      
                                                                               
                                                                               
Representative Mulder moved and asked unanimous consent to                     
withdraw Amendment No. 3.  There being no objection, it was so                 
ordered.                                                                       
                                                                               
                                                                               
Representative Brown placed a call of the House and lifted the call.           
                                                                               

1996-03-13                     House Journal                      Page 3122
HB 428                                                                       
Amendment No. 4 was offered by Representative Brice:                           
                                                                               
Page 3, line 7, after "of (b)":                                                
	Insert "and (c)"                                                              
                                                                               
Page 3, following line 27:                                                     
	Insert a new subsection to read:                                              
	"(c)  In the evaluation of a bid submitted to construct and operate           
the correctional facility described in this section, the Department of         
Administration may give preference to a bid that pledges to employ             
only state residents."                                                         
                                                                               
Reletter the following subsections accordingly.                                
                                                                               
                                                                               
Representative Brice moved and asked unanimous consent that                    
Amendment No. 4 be adopted.                                                    
                                                                               
Representative Barnes objected.                                                
                                                                               
                                                                               
Amendment to Amendment No. 4 was offered by Representative                     
Davies:                                                                        
                                                                               
Under subsection (c) of the amendment, following Administration                
may:                                                                           
Delete give preference to                                                     
Insert provide incentive to the maker of                                      
                                                                               
and following to employ:                                                       
Delete only                                                                   
                                                                               
and following residents:                                                       
Insert as far as practicable                                                  
                                                                               
                                                                               
Representative Davies moved and asked unanimous consent that the               
amendment to Amendment No. 4 be adopted.                                       
                                                                               
                                                                               
Representative Martin objected.                                                

1996-03-13                     House Journal                      Page 3123
HB 428                                                                       
The question being:  Shall the amendment to Amendment No. 4 be                 
adopted?  The roll was taken with the following result:                        
                                                                               
CSHB 428(FIN) am                                                               
Second Reading                                                                 
Amendment to Amendment No. 4                                                   
                                                                               
                                                                               
YEAS:  33   NAYS:  5   EXCUSED:  2   ABSENT:  0                              
                                                                               
Yeas:  Austerman, Barnes, Brice, Brown, Bunde, Davies, G.Davis,                
Elton, Finkelstein, Foster, Green, Grussendorf, Hanley, Ivan, James,           
Kelly, Kott, Kubina, Long, Mackie, Masek, Moses, Navarre, Parnell,             
Phillips, Robinson, Rokeberg, Sanders, Therriault, Toohey, Vezey,              
Williams, Willis                                                               
                                                                               
Nays:  Kohring, Martin, Mulder, Ogan, Porter                                   
                                                                               
Excused:  B.Davis, Nicholia                                                    
                                                                               
Barnes changed from "Nay" to "Yea".                                            
Toohey changed from "Nay" to "Yea".                                            
Ivan changed from "Nay" to "Yea".                                              
Therriault changed from "Nay" to "Yea".                                        
Parnell changed from "Nay" to "Yea".                                           
Bunde changed from "Nay" to "Yea".                                             
Kott changed from "Nay" to "Yea".                                              
                                                                               
And so, the amendment to Amendment No. 4 was adopted.                          
                                                                               
The question being:  Shall Amendment No. 4 as amended be                       
adopted?  The roll was taken with the following result:                        
                                                                               
CSHB 428(FIN) am                                                               
Second Reading                                                                 
Amendment No. 4 as amended                                                     
                                                                               
YEAS:  23   NAYS:  15   EXCUSED:  2   ABSENT:  0                             
                                                                               
Yeas:  Austerman, Brice, Brown, Davies, Elton, Finkelstein, Green,             
Grussendorf, James, Kelly, Kott, Kubina, Long, Mackie, Masek,                  
Moses, Navarre, Robinson, Sanders, Therriault, Vezey, Williams,                
Willis                                                                         

1996-03-13                     House Journal                      Page 3124
HB 428                                                                       
Nays:  Barnes, Bunde, G.Davis, Foster, Hanley, Ivan, Kohring, Martin,          
Mulder, Ogan, Parnell, Phillips, Porter, Rokeberg, Toohey                      
                                                                               
Excused:  B.Davis, Nicholia                                                    
                                                                               
Ivan changed from "Yea" to "Nay".                                              
                                                                               
And so, Amendment No. 4 as amended was adopted.                                
                                                                               
                                                                               
Amendment No. 5 was offered by Representative Finkelstein:                     
                                                                               
Page 1, line 1 to page 4, line 24:                                             
                                                                               
Delete all material                                                           
                                                                               
	Insert  "An Act providing for the issuance of general obligation             
bonds in the amount of $148,500,000 for the purpose of paying the              
cost of design and construction of state correctional facilities; and          
providing for an effective date.                                               
                                                                              
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF                               
ALASKA:                                                                        
                                                                               
	* Section 1.  For the purpose of paying the cost of design and              
construction of correctional facilities of the state, general obligation       
bonds of the state in the principal amount of not more than                    
$148,500,000 shall be issued and sold.  The full faith, credit, and            
resources of the state are pledged to the payment of the principal of          
and interest and redemption premium, if any, on the bonds.  The bonds          
shall be issued under the provisions of AS37.15 as those provisions            
read at the time of issuance.                                                  
	* Sec. 2.  If the issuance of the bonds is authorized by the                
qualified voters of the state, a special fund of the state to be known as      
the State Correctional Facility Construction Fund shall be                     
established, to which shall be credited the proceeds of the sale of the        
bonds described in sec.1 of this Act except for the accrued interest and       
premiums.                                                                      
	* Sec. 3.  The amount of $148,500,000 is appropriated from the              
"State Correctional Facility Construction Fund" to the Department of           
Transportation  and  Public  Facilities  to  be  allocated  among  the         

1996-03-13                     House Journal                      Page 3125
HB 428                                                                       
following projects in the amounts listed, which include the cost of            
issuance of the bonds, subject to reallocation between projects in             
accordance with AS37.07.080(e):                                                
	(1)Palmer Correctional Center                           $ 13,050,000         
	(2)Hiland Mountain (Eagle River)                                             
Correctional Center								                                1,000,000         
	(3)Yukon-Kuskokwim (Bethel)                                                  
Correctional Center								                                5,000,000         
	(4)Mat-Su Pretrial (Palmer)                                                  
Correctional Center								                                6,000,000         
	(5)Fairbanks Correctional Facility				                    10,250,000         
	(6)Anchorage Criminal Justice Facility			                 60,000,000         
	(7)North Slope Borough (Barrow)                                              
Correctional Facility		                                   15,000,000         
	(8)Lemon Creek (Juneau)                                                      
Correctional Center			                                     9,000,000         
	(9)  Wildwood (Kenai) Correctional Center		                29,200,000         
                                                                               
	* Sec. 4.  If the issuance of the bonds is authorized by the                
qualified voters of the state, the cost of issuance of the bonds, included     
in the amount appropropriated by sec. 3 of this Act, may be paid by            
means of a net transaction by which the trustee of the bonds shall             
retain a part of the bond proceeds for this purpose.                           
	* Sec. 5.  The amount withdrawn from the public facility planning           
fund for the purpose of advance planning for the improvements                  
financed under this Act shall be reimbursed to the fund from the               
proceeds of the sale of bonds authorized by this Act.                          
	* Sec. 6.  The unexpended and unobligated balance of the                    
appropriation made in sec. 3 of this Act lapses under AS37.25.020              
and is appropriated to the state bond committee to redeem bonds sold           
under the Act or to pay rebatable arbitrage if necessary.  The amounts         
expended from the general fund to pay the principal, interest, and             
redemption premium on bonds issued under this Act shall be                     
reimbursed to the general fund from the appropriation made under this          
section to the extent that the money is not needed to redeem the bonds.        
	* Sec. 7.  The question whether the bonds authorized in this Act            
are to be issued shall be submitted to the qualified voters of the state       
at the next general election and shall read substantially as follows: