00 SENATE BILL NO. 179                                                                                                     
01 "An Act authorizing the Department of Corrections, for the benefit of the state,                                        
02 to enter into an agreement to use space within a correctional facility in the                                           
03 Matanuska-Susitna Borough that is built, owned, and operated by a private                                               
04 contractor, and setting conditions on the operation of the correctional facility                                        
05 affected by the use agreement; and authorizing the Department of Corrections, for                                       
06 the benefit of the state, to enter into an agreement with the City of Seward to                                         
07 use space within a correctional facility that is built, owned, and operated by a                                        
08 private contractor, and setting conditions on the operation of the correctional                                         
09 facility affected by the use agreement."                                                                                
10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
11    * Section 1.  AUTHORIZATION FOR AGREEMENT FOR STATE USE OF                                                           
12 CORRECTIONAL FACILITY SPACE TO BE OWNED AND OPERATED BY THIRD-                                                          
13 PARTY CONTRACTOR IN THE MATANUSKA-SUSITNA BOROUGH.  (a)  To relieve                                                     
14 overcrowding of existing correctional facilities, the Department of Corrections may enter into                          
01 an agreement for use of space within a correctional facility in the Matanuska-Susitna Borough                           
02 that will house persons who are committed to the custody of the commissioner of corrections.                            
03 The agreement for use entered into under this section is predicated upon and must provide for                           
04 an agreement under which a private third-party contractor, who has been selected by the                                 
05 solicitation of competitive bids under AS 36.30, builds, owns, and operates the facility by                             
06 providing for custody, care, and discipline services for persons held by the commissioner of                            
07 corrections under authority of state law.                                                                               
08  (b)  The authorization given by (a) of this section is subject to the conditions of (c)                                
09 and (d) of this section and to the further limitation that the total payments related to the                            
10 capital cost of the facility for the full term of the agreement for use, which shall be not less                        
11 than 15 years nor more than 25 years, may not exceed $130,000,000 and the anticipated                                   
12 annual amount of the payment by the Department of Corrections under the agreement for use                               
13 must be reasonably commensurate with that total.                                                                        
14  (c)  An agreement for use of space authorized by (a) of this section may not involve                                   
15 a correctional facility that                                                                                            
16   (1)  contains a total population of not less than 700 prisoners; or                                                   
17   (2)  is to be operated by the state or a municipality except that the state or a                                      
18 municipality may operate the correctional facility temporarily if, in a correctional facility that                      
19 is to be operated by a third-party contractor with whom the state or municipality has entered                           
20 into an agreement to operate the correctional facility, the private third-party contractor with                         
21 whom the state or municipality has entered into the agreement to operate the correctional                               
22 facility defaults in performance under the contract and operation of the correctional facility                          
23 by the state or the municipality is reasonably necessary to ensure the facility's continued                             
24 operation.                                                                                                              
25  (d)  In the award of a contract for the operation of the correctional facility to be                                   
26 operated under the authorization set out in (a) of this section, the Department of Corrections                          
27 shall require that persons employed by the contractor as correctional officers in the facility                          
28 meet the requirements of AS 18.65.130 - 18.65.290 that are applicable to correctional officers.                         
29    * Sec. 2.  AUTHORIZATION FOR AGREEMENT FOR STATE USE OF                                                              
30 CORRECTIONAL FACILITY SPACE TO BE OWNED AND OPERATED BY THIRD-                                                          
31 PARTY CONTRACTOR IN THE CITY OF SEWARD.  (a)  To relieve overcrowding of                                                
01 existing correctional facilities, the Department of Corrections may enter into an agreement                             
02 with the City of Seward for use of space within a correctional facility that will house persons                         
03 who are committed to the custody of the commissioner of corrections.  The agreement for use                             
04 entered into under this section is predicated upon and must provide for an agreement under                              
05 which a private third-party contractor builds, owns, and operates the facility by providing for                         
06 custody, care, and discipline services for persons held by the commissioner of corrections                              
07 under authority of state law.                                                                                           
08  (b)  The authorization given by (a) of this section is subject to the conditions of (c)                                
09 and (d) of this section and to the further limitation that the total payments related to the                            
10 capital cost of the facility for the full term of the agreement for use, which shall be not less                        
11 than 15 years nor more than 25 years, may not exceed $120,000,000 and the anticipated                                   
12 annual amount of the payment by the Department of Corrections under the agreement for use                               
13 must be reasonably commensurate with that total.                                                                        
14  (c)  An agreement for use of space authorized by (a) of this section may not involve                                   
15 a correctional facility that                                                                                            
16   (1)  contains a total population of not less than 500 prisoners; or                                                   
17   (2)  is to be operated by the state or a municipality except that the state or a                                      
18 municipality may operate the correctional facility temporarily if, in a correctional facility that                      
19 is to be operated by a third-party contractor with whom the state or municipality has entered                           
20 into an agreement to operate the correctional facility, the private third-party contractor with                         
21 whom the state or a municipality has entered into the agreement to operate the correctional                             
22 facility defaults in performance under the contract and operation of the correctional facility                          
23 by the state or the municipality is reasonably necessary to ensure the facility's continued                             
24 operation.                                                                                                              
25  (d)  In the award of a contract for the operation of the correctional facility to be                                   
26 operated under the authorization set out in (a) of this section, the Department of Corrections                          
27 shall require that persons employed by the contractor as correctional officers in the facility                          
28 meet the requirements of AS 18.65.130 - 18.65.290 that are applicable to correctional officers.