00CS FOR HOUSE BILL NO. 428(FIN)                                                                                          
01 "An Act relating to the authority of the Department of Corrections to contract                                          
02 for facilities for the confinement and care of prisoners, and annulling a regulation                                    
03 of the Department of Corrections that limits the purposes for which an agreement                                        
04 with a private agency may be entered into; and giving notice of and approving                                           
05 a lease-purchase agreement for the design, construction, and operation of a                                             
06 correctional facility in the Third Judicial District, and setting conditions and                                        
07 limitations on the facility's design, construction, and operation."                                                     
08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
09    * Section 1.  AS 33.30.031(a) is amended to read:                                                                    
10  (a)  The commissioner shall determine the availability of state correctional                                          
11 facilities suitable for the detention and confinement of persons held under authority of                                
12 state law or under agreement entered into under (e) of this section.  If the                                            
13 commissioner determines that suitable state correctional facilities are not available, the                              
14 commissioner may enter into an agreement with a public or private agency to provide                                     

01 necessary facilities, subject to the following:                                                                        
02   (1)  the commissioner may not enter into an agreement with a                                                         
03 public or private agency that is unable to provide a degree of custody, care, and                                       
04 discipline to the extent required by the laws of this state;                                                            
05   (2)  correctional [.  CORRECTIONAL] facilities provided through                                                     
06 agreement with a public agency for the detention and confinement of persons held                                        
07 under authority of state law may be in this state or in another state;                                                 
08   (3)  correctional [.  CORRECTIONAL] facilities provided through                                                     
09 agreement with a private agency                                                                                         
10   (A)  must be located in this state unless the commissioner finds                                                  
11 in writing that                                                                                                         
12   (i)  [(1)]  there is no other reasonable alternative for                                                         
13 detention in the state; and                                                                                             
14   (ii)  [(2)]  the agreement is necessary because of health                                                        
15 or security considerations involving a particular prisoner or class of                                                  
16 prisoners, or because an emergency of prisoner overcrowding is                                                          
17 imminent;                                                                                                              
18   (B)  may provide for the detention and confinement of all                                                           
19 persons held by the commissioner under authority of state law, whether                                                  
20 charged with or convicted of felonies or misdemeanors, without regard to                                                
21 the custody classifications for prisoners as determined by the                                                          
22 commissioner, unless the security of the facility is inconsistent with those                                            
23 custody classifications; and                                                                                            
24   (C)  may not be administratively restricted or limited by the                                                       
25 commissioner to use only for prisoners involved in certain rehabilitative or                                            
26 treatment programs authorized by law.  [THE COMMISSIONER MAY                                                           
27 NOT ENTER INTO AN AGREEMENT WITH AN AGENCY UNABLE TO                                                                    
28 PROVIDE A DEGREE OF CUSTODY, CARE, AND DISCIPLINE SIMILAR                                                               
29 TO THAT REQUIRED BY THE LAWS OF THIS STATE.]                                                                            
30    * Sec. 2.  NOTICE AND APPROVAL OF LEASE-PURCHASE AGREEMENT.  (a)  To                                                 
31 provide for the design, construction, and operation of a new correctional facility in order to                          

01 relieve overcrowding of existing correctional facilities, the Department of Administration, on                          
02 behalf of the Department of Corrections, may enter into a lease-purchase agreement with a                               
03 private third-party contractor under AS 33.30.031 for the design, construction, and operation                           
04 of a correctional facility in the Third Judicial District that will house persons who are                               
05 committed to the custody of the commissioner of corrections.  The project approval given by                             
06 this subsection is subject to the conditions of (b) of this section and to the following                                
07 limitations:                                                                                                            
08   (1)  the total construction and related costs of establishing the correctional                                        
09 facility may not exceed $100,000,000;                                                                                   
10   (2)  the total lease payments for the full term of the agreement may not exceed                                       
11 $200,000,000 and the anticipated annual amount of the rental obligation to be paid by the                               
12 Department of Corrections under the lease must be reasonably commensurate with that total;                              
13 and                                                                                                                     
14   (3)  at the end of the term of the lease-purchase agreement, the state shall own                                      
15 the correctional facility.                                                                                              
16  (b)  The correctional facility to be designed, constructed, and operated under the notice                              
17 and approval given in (a) of this section                                                                               
18   (1)  must be designed and constructed so as to house, in separate housing,                                            
19 female prisoners and male prisoners;                                                                                    
20   (2)  may not contain a total population of more than 1,000 prisoners, but must                                        
21 be designed and constructed so as to allow expansion of the facility to a greater capacity; and                         
22   (3)  may not be operated by the state except temporarily when                                                         
23   (A)  the private third-party contractor with whom the state has entered                                              
24 into an agreement to operate defaults in performance under the contract and state                                       
25 operation is reasonably necessary to ensure the facility's continued operation; or                                      
26   (B)  the state is unable to contract with a private third-party contractor.                                          
27  (c)  If required by the commissioner of corrections as a condition of the correctional                                 
28 facility's operation, in the award of a contract for the operation of the correctional facility to                      
29 be designed, constructed, and operated under the notice and approval given in (a) of this                               
30 section, the Department of Administration shall require that persons employed by the                                    
31 contractor as correctional officers in the facility meet the requirements of AS 18.65.130 -                             

01 18.65.290 that are applicable to correctional officers.                                                                 
02  (d)  Subsection (a) of this section constitutes the notice and approval required by                                    
03 AS 36.30.085.                                                                                                           
04    * Sec. 3.  CONSTRUCTION OF CORRECTIONAL FACILITY UNDER PROJECT                                                       
05 LABOR AGREEMENT.  (a)  The purpose of this section is to enable the state to meet its                                   
06 obligation to improve the care and custody of the prisoners for which it is responsible at an                           
07 early date through the completion of construction of a major correctional facility by structuring                       
08 labor relations at the job site of the correctional facility in the interests of industrial harmony                     
09 and in a way that makes optimal use of construction resources.                                                          
10  (b)  Notwithstanding any restrictions that may be applicable under AS 36.30, the                                       
11 correctional facility described in sec. 2 of this Act may be constructed only under a public                            
12 construction project labor agreement between the building construction contractor and one or                            
13 more building trade unions; the labor agreement must provide                                                            
14   (1)  a no-strike and no-slowdown pledge by the union or unions;                                                       
15   (2)  a commitment on the part of the construction contractor to hire through                                          
16 local union hiring halls; and                                                                                           
17   (3)  a provision allowing not more than 15 percent of the construction                                                
18 contractor's workforce on the public construction project to be composed of persons who are                             
19 not members of the union or unions.                                                                                     
20    * Sec. 4.  Nothing in sec. 2 of this Act precludes operation of the correctional facility                            
21 described in sec. 2(a) of this Act by a private third-party contractor comprised of persons                             
22 employed by the Department of Corrections.                                                                              
23    * Sec. 5.  22 AAC 05.300(e) is annulled.