00                             HOUSE BILL NO. 134                                                                          
01 "An Act authorizing the Department of Corrections to enter into agreements with                                         
02 municipalities for new or expanded public correctional facilities in the Fairbanks North                                
03 Star Borough, the Matanuska-Susitna Borough, Bethel, and the Municipality of                                            
04 Anchorage."                                                                                                             
05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
06    * Section 1.  The uncodified law of the State of Alaska is amended by adding a new section                         
07 to read:                                                                                                                
08       AUTHORIZATION TO LEASE CORRECTIONAL FACILITY SPACE WITH                                                           
09 MUNICIPALITIES.  (a)  To relieve overcrowding of existing correctional facilities in the                                
10 state and the extensive use of out-of-state correctional facilities, the Department of                                  
11 Corrections, not later than July 1, 2006, may enter into agreements with the following                                  
12 municipalities for new or expanded correctional facilities:                                                             
13            (1)  Fairbanks North Star Borough - expansion of existing facility by up to 80                               
14 beds;                                                                                                                   
01            (2)  Matanuska-Susitna Borough - construction of new facility with up to 1,200                               
02 beds;                                                                                                                   
03            (3)  Bethel - expansion of existing facility by up to 120 beds;                                              
04            (4)  Municipality of Anchorage - expansion of Anchorage Jail by up to 200                                    
05 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), and (4) of this section and $155,000 a bed for (a)(3) of this section, adjusted for                        
10 inflation each year at a rate equal to the percentage increase in the Consumer Price Index for                          
11 urban wage earners and clerical workers for Anchorage, Alaska, during the previous calendar                             
12 year as determined by the Bureau of Labor Statistics, United States Department of Labor;                                
13            (2)  if construction of a new facility is authorized, the municipality shall own                             
14 the facility, and the state may enter into a long-term lease not to exceed 25 years with the                            
15 municipality to operate the facility; the annual lease payment for a new facility may not                               
16 exceed $14,600 a bed;                                                                                                   
17            (3)  if expansion of an existing facility is authorized, the state shall enter into a                        
18 joint ownership agreement with the municipality of the expanded facility, enter into a long-                            
19 term lease not to exceed 25 years of the municipality's interest in the facility, and operate the                       
20 facility; payments under the lease may not exceed $16,700 a bed for the Bethel facility and                             
21 $14,600 a bed for the Fairbanks and Anchorage facilities;                                                               
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.                                         
24       (c)  The authorization given by (a)(4) of this section is subject to the following                                
25 condition:  expansion of the facility may only occur if the expansion is funded by up to                                
26 $30,000,000 in federal receipts.