Legislature(2003 - 2004)
03/11/2003 03:35 PM Senate STA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
SENATE STATE AFFAIRS STANDING COMMITTEE
March 11, 2003
3:35 p.m.
MEMBERS PRESENT
Senator Gary Stevens, Chair
Senator John Cowdery, Vice Chair
Senator Fred Dyson
Senator Gretchen Guess
Senator Lyman Hoffman
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE JOINT RESOLUTION NO. 7
Expressing support for Vancouver, British Columbia's, bid for
the 2010 Olympic Winter Games and the Paralympic Winter Games.
MOVED SJR 7 OUT OF COMMITTEE
SENATE JOINT RESOLUTION NO. 9
Expressing confidence in and support for all members of the
military, their families, and employers of members of the
National Guard.
MOVED CSSJR 9 (STA) OUT OF COMMITTEE
SENATE BILL NO. 65
"An Act authorizing the Department of Corrections to enter into
agreements with municipalities for new or expanded public
correctional facilities in the Fairbanks North Star Borough, the
Matanuska-Susitna Borough, Bethel, and the Municipality of
Anchorage."
HEARD AND HELD
SENATE BILL NO. 99
"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; and providing for an effective date."
HEARD AND HELD
PREVIOUS ACTION
SJR 7 - See Labor and Commerce minutes dated 3/4/03
SJR 9 - No previous action to record.
SB 65 - See State Affairs minutes dated 2/20/03
SB 99 - No previous action to record
WITNESS REGISTER
Mark Riehle
Staff to Senator Cowdery
Alaska State Capitol, Room 101
Juneau, AK 99801-1182
POSITION STATEMENT: Introduced SJR 7
Senator Con Bunde
Alaska State Capitol, Room 506
Juneau, AK 99801-1182
POSITION STATEMENT: Sponsor SJR 9
Senator Lyda Green
Alaska State Capitol, Room 516
Juneau, AK 99801-1182
POSITION STATEMENT: Sponsor SB 65
Mary Bowery
No address provided
POSITION STATEMENT: Testified on SB 65
Frank Smith
No address provided
POSITION STATEMENT: Testified on SB 65
David Katzeek
Alaska Native Brotherhood #2
650 Glacier Highway
Juneau, AK 99801
POSITION STATEMENT: Testified on SB 65
Ron Swanson
Mat-Su Borough representative
350 E. Dahlia
Palmer, AK 99645
POSITION STATEMENT: Testified on SB 65
Ronald Wilson
3330 Sparrow Ct
Palmer, AK 99645
POSITION STATEMENT: Testified on SB 65
Daniel Colang
4423 Woodriver Dr.
Fairbanks, AK 99701
POSITION STATEMENT: Supports SB 65
Dean Rand
No address provided
POSITION STATEMENT: Testified on SB 65
Senator Con Bunde
Alaska State Capitol, Room 506
Juneau, AK 99801-1182
POSITION STATEMENT: Sponsor SB 99
Frank Prewitt
Cornell Company representative
No address provided
POSITION STATEMENT: Testified on SB 99
Marvin Wiebe
Senior Vice President Cornell Company
No address provided
POSITION STATEMENT: Testified on SB 99
ACTION NARRATIVE
TAPE 03-7, SIDE A
CHAIR GARY STEVENS called the Senate State Affairs Standing
Committee meeting to order at 3:35 p.m. Present were Senators
Hoffman, Dyson and Chair Gary Stevens. Senators Cowdery and
Guess arrived momentarily.
The first order of business was SJR 7.
SJR 7-VANCOUVER'S BID FOR 2010 WINTER GAMES
MARK RIEHLE, staff to Senator Cowdery and the World Trade
Committee, described SJR 7 as an expression of support for
Vancouver British Columbia's bid for the 2010 Olympic Games and
the Paralympic Games. Vancouver is competing to host the games
with Pyeongchang, Korea, and Salzburg, Austria. The
International Olympic Committee (IOC) will award the bid to one
of the three cities in July 2003.
If Vancouver is successful, Alaska is certain to see
economic benefits. In particular, Alaska stands to
benefit in the tourism and winter recreation sectors
due to overall worldwide exposure of the Pacific
Northwest region. As an example, the entire Western
region of the mainland U.S. received an estimated $1
billion economic boost from the 2000 winter games in
Salt Lake City.
Alaska and British Columbia share close economic,
government, sporting, cultural and family ties along a
lengthy common border. The primary goal of this
resolution is to strengthen these ties through this
formal resolution of support.
Passage of this resolution will mean more than simple
neighborly expression of support because,
traditionally, the IOC gives weight to such
resolutions when making its bid determination.
It is likely Alaskan small business owners-from bed
and breakfast establishments to microbreweries to fish
processors-will realize the primary economic benefit
of a successful 2010 bid by Vancouver and Whistler
B.C.
SENATOR COWDERY asked him to elaborate on how Alaskan businesses
would benefit.
MR. RIEHLE replied small businesses would have the opportunity
to distribute brochures.
There were no further questions.
SENATOR DYSON made a motion to move SJR 7 from committee with
individual recommendations and zero fiscal note.
There being no objection, it was so ordered.
SJR 9-SUPPORTING MEMBERS OF MILITARY
CHAIR GARY STEVENS asked for a motion to adopt the committee
substitute (CS) for SJR 9 as the working document.
SENATOR FRED DYSON made a motion to adopt CSSJR 9 (STA) \I Kurtz
3/7/03 version as the working document.
There being no objection, it was so ordered.
SENATOR CON BUNDE, resolution sponsor, urged the committee to
join him in an expression of confidence in and support for all
members of the military and their families as they participate
in the defense of our country.
The committee substitute reflects title changes for General
Chandler and General Campbell.
SENATOR JOHN COWDERY noted some Alaskans who are also members of
the military have had difficulty qualifying for a permanent fund
dividend after they return from active duty then leave the state
for extended vacations. He labeled this a disservice and
expressed hope the situation would be changed.
He made a motion to move CSSJR (STA) 9 \I version from committee
with individual recommendations and zero fiscal note.
There being no objection, it was so ordered.
SB 65-CORRECTIONAL FACILITY EXPANSION
CHAIR GARY STEVENS announced he did not intend to move SB 65
from committee that day. Senator Green introduced the bill
during a previous hearing and he asked if she had additional
comments.
SENATOR LYDA GREEN, bill sponsor, restated the need for
additional prison facilities in the state. The proposed plan
offers the opportunity to add to existing facilities, which
would consolidate services without adding new administration.
She noted the amounts referred to in the letter from the
Department of Revenue and the figures shown on the Department of
Correction fiscal note have caused confusion. She added,
"Revenue feels that the state might aught to be the person doing
the actual bonding; whereas the communities feel like they are
perfectly capable of doing that."
There were no questions for Senator Green.
CHAIR GARY STEVENS noted there were a number of people waiting
to testify.
MARY BOWERY testified via teleconference. She has extensive
first hand knowledge of private prisons in the state of
Tennessee. Following are points regarding a comparative study of
private and state prisons in Tennessee:
· As per contract, only healthy inmates were assigned to the
private prison
· $4,000 medical cap per inmate per year in private prison
· Only medium custody or lower inmates assigned to private
prison
· State prison required to have an emergency response team
· Private prison was able to fill empty beds with inmates
from other states
· If Tennessee inmates were injured by inmates from other
states, Tennessee was liable for the medical and legal
costs
· The state was required to handle an escape from the private
prison because the private prison had no legal jurisdiction
to handle the escape. State taxpayers were not reimbursed
for the expense
· The private prison had a turnover rate of 100 percent in
two years with 62.9 percent in the first six months
· The private prison had more idle inmates because there were
fewer jobs for inmates and fewer educational or
rehabilitation opportunities and programs
· The private prison had increased incident reports of
violent acts
CHAIR GARY STEVENS asked what position she held with the
Tennessee prison system.
MS. BOWERY replied she was a correctional counselor III with a
wide range of jobs including parole work in a 400 inmate housing
unit.
There were no further questions for Ms. Bowery.
MR. FRANK SMITH testified via teleconference in support of SB
65. He has worked in substance abuse programs, has visited
prisons the world over and is familiar with the facilities
Senator Green envisions. He advised he sent the Chair a copy of
his recently published chapter on Native Americans in private
prisons.
The prison proposed in SB 65 is superior to the Whittier option
because Sutton has far better access, it addresses the
desperately needed expansions to the Bethel and Fairbanks
prison, and it would present a great savings to the state.
Having been involved in prison research for the last 30 years,
he felt qualified to advise members of the importance of
bringing prisoners closer to home. In fact, "That connection
with family and support systems in the community is absolutely
the most important thing in keeping Native Alaskans from going
back to jail."
The Tennessee study referred to in earlier testimony indicated
that the state saved just 38 cents per prisoner per day. Guards
in the private prisons were making very poor wages compared to
state correctional officers while the CEO's in private prisons
were making about two thirds of a million dollars.
CHAIR GARY STEVENS announced individual testimony would be
limited to five minutes.
SENATOR COWDERY asked if the cost of housing prisoners was
important.
MR. SMITH replied it is important.
SENATOR COWDERY asked whether the State could build
competitively and why exporting prisoners rather than building
in Alaska wasn't an acceptable alternative.
MR. SMITH reiterated the importance of proximity to families for
inmates. Also, training and staff stability help in the
rehabilitative process and private prisons have greater than 50
percent annual staff turnover compared to less than 15 percent
staff turnover in public prisons. Admittedly it may be cheaper
to house inmates in private prisons outside Alaska, but the
conditions in some private prisons are deplorable and some
private contracts have been rescinded due to poor conditions.
It's been suggested that moving prisons to Mexico would be even
cheaper, but you get what you pay for.
SENATOR COWDERY asked about safety and how many escapees the
Arizona prison has had.
MR. SMITH cited the example in which the court found that six
Alaskan inmates were justified in escaping from the Arizona
facility to get away from bad conditions. The court also found
the private prison had no legal authority to confine Alaskans in
Arizona.
SENATOR COWDERY said his informal inmate poll indicated most
inmates preferred to remain in Arizona.
MR. SMITH spoke to an article in the Anchorage Daily News that
tracked visiting rates in Arizona. It found just four of 825
Alaskan inmates were getting regular visits. Also, he has 150
pages of affidavits from Alaskan prisoners who were confined to
the Central Arizona Detention Facility in Florence describing
two unimaginable guard riots.
SENATOR COWDERY said, "Well I guess it's our role to get the
best bang for the buck and it's not our role to coddle our
prisoners necessarily, but they got to be treated humane. I
don't want to waste any more time on this, thank you."
There were no further questions of Mr. Smith.
MR. DAVID KATZEEK gave testimony in both Tlingit and English.
This particular bill, whether it's private or whether
it's public-I would strongly encourage the legislators
to take a look at what you have in your hands and ask
yourselves a question. What will history say of me
when I served in the Legislature and the majority of
the people that have been placed in prison are my
people? Building prisons doesn't really solve the
major problem. Prisons with rehabilitative programs
and projects are the type of things that can turn
things around. You're talking about money. If you're
talking about money then I would encourage you to take
a look at the recidivism rate and find out how much
you're getting double dipped by one particular
prisoner over and over and over again. The other
question I would ask is, Are we living in an addictive
society where we continue to do the same thing over
and over and over and over and over.... and over again
expecting different results and yet getting the same
kind of results over again? And then somebody comes
and says, "Let's build another prison."
Have you heard a little baby crying whose daddy is
incarcerated and who maybe started off in getting into
trouble by drinking? Put yourself in the position of
that individual. Have you heard the kid crying in
prison whose grandmother passed away whose grandfather
passed away that they can't go and see? I am not in
favor of the state building facilities where you're
going to have a state run program where you're
listening to a special interest group and believe me
when I'm saying this, that special interest group will
be following me and looking at me because I'm saying
something that's contrary to what the general rule is.
I'm here to plead with you noble people. You are noble
people just like I am and just like those individuals
that are placed in prison. I ran a brief demonstration
that I would call a beta-tested program using our
Tlingit culture and how we interacted with one
another. I called the prisoners that I met with-and I
was doing this voluntarily with respect to the Alaska
Native Brotherhood Camp II-and I called them Aan Yuxu
Saani. I called them noble people. Those individuals
that were incarcerated went back to their counselors
and other people and said, "You know what this guy
called us? Noble." They were white guys. They were
saying, "Nobody had ever called us noble before."
Tears running down their face. Some of these guys are
now out providing for their families and doing good
work. The point I'm making to you is building prisons
is not necessarily the solution. Building prisons with
respect to institutions that will allow us to develop
the kind of programs-Why do I say us? I'm saying
Native people. When we become responsible, as Native
people, for our own people, we are beginning to get
healed. So what will history say of you? That you
built a big prison over in Fairbanks that didn't do
anything?
MR. KATZEEK said this is the third year he has come to ask
legislators to look beyond the bars and cement to the human
beings. Although it is difficult to talk about prisons for his
people, he came to testify because he loves his people. He can
see and feel and understand the rage of his or any people whose
traditional lifestyle is so changed, but building bigger prisons
isn't the answer. "Look for prisons that will be able to meet
the need that history will record that you had compassion and
mercy on your fellow man."
CHAIR GARY STEVENS thanked Mr. Katzeek for his testimony and
asked if there were any questions.
SENATOR COWDERY commented that about one third of the Alaska
Native inmates he met in Arizona had committed crimes against
Caucasians and about two thirds had committed crimes against
other Alaska Natives. He said, "A crime is a crime and you can
have compassion but I, you got to have compassion for the
victims and the victims families too."
MR. KATZEEK replied he was pleased Senator Cowdery said that
because it "documents the frustration with respect to an
individual in their community who can't provide with dignity for
their families."
SENATOR COWDERY responded, "Whose fault is that now?"
MR. KATZEEK replied there are a variety of issues such as
subsistence and limited entry that make it difficult for
individuals to provide. To solve that he would say, "You are a
human being and the most important thing in being a human being
is to be able to listen attentively to your spirit, to your
heart, to your sole, to your mind. And work from being who we
are as people. That doesn't forgive the person for doing
something that's wrong. That's acknowledging a human being, like
you acknowledged me today. I really appreciate it because you
recognized me, you acknowledged me and you accepted me. It
doesn't mean that you agree with what I'm saying, but the honor
of letting me sit here regardless of where I come from or my
background is a principle in any human relationship and
interaction."
There were no further questions for Mr. Katzeek.
CHAIR GARY STEVENS called Ron Swanson to testify.
MR. RON SWANSON, community development director for the Mat-Su
Borough, testified the borough assembly passed a resolution
supporting municipal owner state operated prisons on February
18, 2003. The development of newer and expanded prisons in
Alaska municipalities would benefit Alaskans by providing
construction and permanent year around prison jobs. Also,
housing prisoners in the state would allow prisoners to be
closer to their families and culture and would enhance
rehabilitation.
The Mat-Su Borough has three correctional facilities with a
total of 585 beds. The Palmer Correction Facility at Sutton, the
Mat-Su Pretrial Facility in Palmer, and the Point MacKenzie
Facility have provided stable and well paying jobs for Alaskans.
The Sutton Facility would be expanded to 1,200 beds and was
originally planned and constructed with enough land for the
expansion. The combination of the prison expansion, an increased
recreation and tourism base at Hatcher Pass, and a new regional
hospital and mental health facility would diversify the borough
economy.
The Department of Corrections would operate the facilities under
long-term lease agreements with local boroughs and cities. Tax-
exempt revenue bonds would be used to finance the facilities and
would be secured by assignment of lease payments payable to the
boroughs and cities. Bond proceeds would be used to finance
construction and expense to issue the bonds. The state would
have responsibility for design and construction of the
facilities through construction management agreements. As owners
of the facilities, cities and boroughs would accept liability
not covered by insurance.
There were no questions asked of Mr. Swanson.
MR. RONALD WILSON stated he has been a state employee and
corrections officer for over 19 years, but he was representing
himself. He said private prisons have not proven they can
provide correctional services more cheaply than their public
counterpart and any private prison cost savings comes through
reduced staff expenses. Public employees have background checks,
psychological evaluations, attend and pass the correctional
officer academy, and meet Alaska Pay Standard Council
requirements. He asked, "If your going to place twice as many
inmates in one facility as you have ever done before, why
wouldn't you want the staff in that facility to meet the
requirements that [correction] officers now have to meet?"
SIDE B
4:25 pm
He quoted findings from several studies that indicated private
prisons did not measure favorably compared to state run
facilities and outlined specific examples of private failures in
Alaska.
There were no questions asked of Mr. Wilson.
MR. DANIEL COLANG expressed support for SB 65. He said he has
been employed by Department of Corrections for eleven years, but
the views expressed were his own.
His father, a World War II veteran, always encouraged him to
vote because thousands of Americans died on the battlefield to
safeguard that right. Because Alaskans have voted against
private prisons two times, he asked the committee to honor that
request.
There were no questions asked of Mr. Colang.
MR. DEAN RAND, long term Whittier resident, testified via
teleconference that he was not in favor of locating a private
prison in Whittier.
CHAIR GARY STEVENS advised the committee was hearing SB 65.
MR. RAND said he realized that and he just wanted members to
have a more accurate picture regarding the amount of community
support for a private prison in Whittier because, Cornell
Company has "steamrolled into and over the citizens of
Whittier." Community support for a private prison in Whittier is
"questionable at best."
There was no further testimony on SB 65.
CHAIR GARY STEVENS announced he would hold SB 65 in committee
until Thursday. If members agreed, it was his intention to move
the bill from committee at that time.
SENATOR GUESS asked whether public testimony was closed or would
it be taken on Thursday.
CHAIR GARY STEVENS advised public testimony could be given on
Thursday.
SB 99-CORRECTIONAL FACILITIES
SENATOR CON BUNDE, bill sponsor, advised some Whittier residents
asked him to offer the bill as one possible alternative of doing "if
not more, at least the same for less." He paraphrased from the
sponsor statement:
Senate Bill 99 authorizes the Department of
Corrections to enter into an agreement with the
City of Whittier for a 1,200 bed [medium]
security correctional facility and services for a
period of 25 years.
Alaska needs a new prison and the ultimate
question is whether the prison is in Alaska or
another state. Currently the state prison system
is operating over capacity and the population is
projected to rise.
Given the current fiscal challenge in the state,
a private prison offers the best value for scarce
dollars. In addition to being the only
economically viable choice, building a prison
will bring benefit to the state, both
economically and socially. Previous testimony
demonstrates the benefit of having prisoners
closer to their families and other support.
SB 99 will provide investment for future economic
growth by creating more than 500 direct and
indirect union scale construction jobs and more
than 450 permanent, direct and indirect, jobs for
Alaskans associated with prison operations for
the 25 year lease authorized by the legislation.
By locating the prison in Whittier, that
community will have an anchor industry to
generate vital economic benefits for an
economically disadvantaged rural community.
A majority of Whittier residents, maybe not the
most vocal but the majority, have indicated at
least to me their support for a private prison in
their community.
I think SB 99 makes sense for Alaska's economy
and her citizens and would encourage your careful
scrutiny and support.
SENATOR LYMAN HOFFMAN referred to the construction cap placed on
SB 65 and asked why there was no such cap in SB 99.
SENATOR BUNDE wasn't sure why a cap would be placed on private
enterprise.
SENATOR JOHN COWDERY asked if the prison would be financed
through bonds.
SENATOR BUNDE replied that's his understanding.
SENATOR COWDERY noted bonds are carefully scrutinized to make
sure they would be paid back.
SENATOR BUNDE said the question is moot if the bonds aren't
viable.
There were no further questions asked of Senator Bunde.
MR. FRANK PREWITT advised he was a former commissioner of the
Department of Correction with about 20 years in public service.
SB 99 proposes a city owned, but privately managed 1,200 bed
prison that is founded upon the same sound correctional
practices as the state run facility proposed by SB 65. Both
capture efficiency through design and economy of scale and both
are located where construction costs are relatively low, where
wages and benefits are the lowest in the state, and within 50
miles of the most sophisticated and plentiful fire, life,
safety, program, housing and human resources in the state.
Management and cost are the substantive differences between the
proposals. Private contractor, Cornell Companies, would manage
the Whittier prison while Sutton would be operated by the state.
Daily capital and operating costs at Sutton are estimated to be
$110 per prisoner while Whittier costs would be just $94 per
prisoner per day. The $94 includes inmate programs, major
medical, staff recruiting and training, equipment, facility
maintenance and all other capital and operating expenses. The
only cost above the $94 would be transportation of prisoners to
the prison and the cost to monitor the contract. The Department
of Corrections transports prisoners between facilities and the
State Troopers take prisoners to court.
The perception that SB 65 and SB 99 are competing bills is
incorrect and neither bill standing alone will solve the prison
bed shortage issue. The Department of Corrections projects a
need for over 1,600 prison beds by 2006. For the last 20 years
there has been need for an additional 200 prison beds each year
and there is nothing to suggest that will change in the near
term.
If the Whittier prison is authorized this year, the doors could
open in two years while the Sutton prison wouldn't open for four
or five years. "It's a simple matter of timing and inflation.
The two bills don't compare; nor do they compete." The Whittier
proposal is the only immediate in-state solution, but a project
such as the Sutton proposal and a modest expansion of regional
jails needs to be in place to fix the long-term shortage.
Governor Murkowski said his primary mission is good paying jobs
and reducing government spending and growth. The Whittier prison
accomplishes all those objectives. Wages and benefits are lower
than with the state, but they are "good, solid private sector
wages and benefits." The facility costs less because the private
sector has a different overhead structure and can build for
less.
He referred to the cost comparison table in tab 3 of the "State
of Alaska Projected Prison Bed Demand & Cost Analysis" booklet.
After comparing the costs, he asked members to review the March
6, 2003 "Whittier Prison Project Economic Impact" report by
economist, David Reaume. Mr. Reaume argues the economic stimulus
and benefit to the state exceeds the extra expenditure of
housing Alaska prisoners in state.
Alaska Natives represent close to 40 percent of the prison
population in Alaska yet SB 99 is the only bill that has an
express provision in the body of the law to provide culturally
relevant programs for Natives. Cornell Companies has made a
commitment to team with the Native community to provide this
type of programs for Native offenders
SENATOR HOFFMAN said Native inmates in the Arizona prison report
the culturally relevant programs were not working. To have
potlatches, they are required to raise private funds, but they
receive no cooperation when they ask for an accounting of the
funds raised. He asked if such practices would take place if a
private facility were built in Alaska.
MR. PREWITT replied Corrections Corporation of America operates
the facility in Arizona and Cornell Companies is a different
company. Cornell Companies recognizes that nothing has been done
to curb the incarceration and recidivism rate of Native
Alaskans. It is their intention to involve the Native community
by teaming with Native corporations to explore new ways of doing
business because the old ways have not worked.
SENATOR COWDERY asked if Cornell Companies would be interested
in bidding for the design, construction and operation of the
prison proposed in SB 65.
MR. PREWITT replied, "If you're suggesting that the Department
of Corrections could put out a competitive bid to design and
operate a facility at Sutton rather than having that be state
operated, that's something that Cornell Companies and
Corrections Corporation of America and several other companies
most assuredly would respond to it."
4:50 pm
CHAIR GARY STEVENS noted members had other commitments at 5:00
pm and announced the hearing would be continued on Thursday.
SENATOR GUESS asked whether pharmaceuticals were included in the
major medical program.
MR. PREWITT replied pharmaceuticals were included; there is
confusion over the cost and "the fiscal note attached to this
House [Senate] bill is the result of their [Department of
Corrections] analysis of the contract between Cornell Companies
and the City of Whittier as well as the intent language in the
bill itself where the intent language says, 'similar services to
Arizona' when Arizona major medical pharmaceuticals are not
included in that. It is our intent that they are included. We
tried to address that in the 'not to exceed $94' per diem
language. As for the contract with Whittier, that's in the
process. That particular contract was based upon last year's
legislation, which was different."
SENATOR GUESS referred to language in Section 2, subparagraph
(A) regarding adjusting per diem cost that states, "costs not
incurred until full occupancy;" and asked whether he was
familiar with that clause.
MR. PREWITT said that is a "ramp up" provision and Mr. Wiebe
from Cornell Companies could provide an explanation.
CHAIR GARY STEVENS asked Mr. Prewitt, Mr. Wiebe, Mr. Butler, Mr.
Wilson, Mr. Burnett and Mr. Wright whether they would be able to
attend the Thursday hearing. After receiving affirmative nods,
he announced there was time for a few more questions.
SENATOR GUESS said her previous question could wait. She then
asked, "Who decides which type of prisoners would be in a
private facility and which type would be in a public
[facility]?" She was more concerned with how and where inmates
with significant and critical medical conditions such as HIV and
cancer would be assigned.
MR. PREWITT wanted Mr. Wiebe to respond.
SENATOR GUESS said she could wait for an answer until Thursday.
MR. PREWITT replied it is up to the Department of Corrections
when prisoners are assigned to and removed from the facility,
but certainly a contractor wouldn't want a population with a 100
percent disability.
SENATOR HOFFMAN asked whether he had reviewed the 3/10/03 fiscal
note provided with SB 99.
MR. PREWITT replied they had reviewed the fiscal note from the
Department of Corrections that had a number "somewhere over $50
million."
SENATOR HOFFMAN asked if they agree with the findings.
MR. PREWITT replied they do not agree. "The $94 per diem rate
includes all costs to the Department of Corrections as I
testified except for the cost to bring the prisoner to the door
and monitor the contract. $94 a day times 1,200 times 365 is $41
million." The Department of Corrections and the bill sponsor
need to dialog.
SENATOR HOFFMAN advised he could save his questions for the
Finance Committee if that was the wish of the Chair.
CHAIR GARY STEVENS replied he would prefer that he direct
finance questions to that committee.
There were no further questions of Mr. Prewitt.
MR. MARVIN WIEBE, Senior Vice President Cornell Companies,
introduced his company as a partner with state departments of
correction. They compete for contracts with their competitors
and, as in this instance, with state correction departments. As
a company they try to meet the particular needs of each state.
Cornell Companies has been in business a number of years, is
traded on the NYSE, and has about 16,000 people under
supervision in 14 different states and the District of Columbia.
They have operated in Alaska since 1998 and have 160 staff
members that supervise nearly 600 offenders in prison or
community residential centers. They have been working closely
with the Alaska Native Brotherhood to focus on Native Alaska
programs. Alcoholism is much more difficult to solve than any
other addiction problems and is particularly difficult in Native
cultures. It is a major issue and they need the help of Alaska
Natives to provide meaningful, helpful, and culturally relevant
solutions.
There was no further testimony on SB 65.
CHAIR GARY STEVENS held SB 65 in committee.
There being no further business to come before the committee,
Chair Gary Stevens adjourned the meeting at 5:00 pm.
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