00                      CS FOR SENATE BILL NO. 231(CRA)                                                                    
01 "An Act relating to correctional facilities."                                                                           
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1.  The uncodified law of the State of Alaska is amended by adding a new section                         
04 to read:                                                                                                                
05       AUTHORIZATION TO LEASE CORRECTIONAL FACILITY SPACE WITH                                                           
06 MUNICIPALITIES.  (a)  To relieve overcrowding of existing correctional facilities in the                                
07 state and the extensive use of out-of-state correctional facilities, the Department of                                  
08 Corrections may enter into agreements with the following municipalities for new or expanded                             
09 correctional facilities:                                                                                                
10            (1)  Fairbanks North Star Borough - expansion of existing facility by up to 100                              
11 beds;                                                                                                                   
12            (2)  Matanuska-Susitna Borough - expansion of existing facilities by up to 370                               
13 beds;                                                                                                                   
14            (3)  City and Borough of Juneau - expansion of existing facility by up to 64                                 
15 beds;                                                                                                                   
01            (4)  Bethel - expansion of existing facility by up to 96 beds;                                               
02            (5)  Ketchikan Gateway Borough - expansion of existing facility by up to 100                                 
03 beds or construction of new facility with up to 100 beds;                                                               
04            (6)  Seward - expansion of existing facility by up to 150 beds;                                              
05            (7)  City of Kenai - expansion of existing facility by up to 256 beds;                                       
06            (8)  Dillingham - construction of new facility with 25 beds;                                                 
07            (9)  Kodiak - construction of new facility with 20 beds;                                                     
08            (10)  Kotzebue - expansion of existing facility by 26 beds;                                                  
09            (11)  North Slope Borough - construction of new facility with 20 beds.                                       
10       (b)  The authorizations given by (a) of this section are subject to the following                                 
11 conditions:                                                                                                             
12            (1)  the average capital cost for all beds may not exceed $155,000 a bed,                                    
13 adjusted for inflation at the rate of three percent a year from the effective date of this Act;                         
14            (2)  if construction of a new facility is authorized, the municipality shall own                             
15 the facility, and the state may enter into a long-term lease not to exceed 20 years with the                            
16 municipality to operate the facility; the annual lease payment for a new facility may not                               
17 exceed $16,700 a bed;                                                                                                   
18            (3)  if expansion of an existing facility is authorized, the state shall enter into a                        
19 joint ownership agreement with the municipality of the expanded facility, enter into a long-                            
20 term lease not to exceed 20 years of the municipality's interest in the facility, and operate the                       
21 facility; payments under the lease may not exceed the amount listed in (2) of this subsection;                          
22            (4)  the agreement to lease must contain terms providing that the commissioner                               
23 of corrections may terminate for cause any contract for operating the facility.