00                      CS FOR SENATE BILL NO. 231(JUD)                                                                   
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, not later than July 1, 2006, may enter into agreements with the following                                  
09 municipalities for new or expanded 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 each year at a rate equal to the percentage increase in the Consumer                             
14 Price Index for urban wage earners and clerical workers for Anchorage, Alaska, during the                               
15 previous calendar year as determined by the Bureau of Labor Statistics, United States                                   
16 Department of Labor;                                                                                                    
17            (2)  if construction of a new facility is authorized, the municipality shall own                             
18 the facility, and the state may enter into a long-term lease not to exceed 20 years with the                            
19 municipality to operate the facility; the annual lease payment for a new facility may not                               
20 exceed $16,700 a bed;                                                                                                   
21            (3)  if expansion of an existing facility is authorized, the state shall enter into a                        
22 joint ownership agreement with the municipality of the expanded facility, enter into a long-                            
23 term lease not to exceed 20 years of the municipality's interest in the facility, and operate the                       
24 facility; payments under the lease may not exceed the amount listed in (2) of this subsection;                          
25            (4)  the agreement to lease must contain terms providing that the commissioner                               
26 of corrections may terminate for cause any contract for operating the facility.