00                      CS FOR HOUSE BILL NO. 134(STA)                                                                    
01 "An Act authorizing the Department of Corrections to enter into lease-purchase                                          
02 agreements with municipalities for new or expanded public correctional facilities in the                                
03 Fairbanks North Star Borough, the Matanuska-Susitna Borough, Bethel, the                                                
04 Municipality of Anchorage, and the City of Seward."                                                                     
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 ENTER INTO LEASE-PURCHASE AGREEMENTS WITH                                                        
09 MUNICIPALITIES FOR NEW OR EXPANDED CORRECTIONAL FACILITIES.  (a)  To                                                    
10 relieve overcrowding of existing correctional facilities in the state and the extensive use of                          
11 out-of-state correctional facilities, the Department of Corrections, not later than July 1, 2006,                       
12 may enter into lease-purchase agreements with the following municipalities for new or                                   
13 expanded correctional facilities:                                                                                       
14            (1)  Fairbanks North Star Borough - expansion of existing facility by up to 80                               

01 beds;                                                                                                                   
02            (2)  Matanuska-Susitna Borough - construction of new public facility with up                                 
03 to 1,250 beds;                                                                                                          
04            (3)  Bethel - expansion of existing facility by up to 120 beds;                                              
05            (4)  Municipality of Anchorage - expansion of Anchorage Jail by up to 200                                    
06 beds.                                                                                                                   
07       (b)  To relieve overcrowding of existing correctional facilities in the state and the                             
08 extensive use of out-of-state correctional facilities, the Department of Corrections, not later                         
09 than July 1, 2008, may enter into a lease purchase agreement with the City of Seward for                                
10 expansion of the existing facility by up to 400 beds.                                                                   
11       (c)  The authorizations given by (a) and (b) of this section are subject to the following                         
12 conditions:                                                                                                             
13            (1)  the average capital cost for all beds may not exceed $135,000 a bed for                                 
14 (a)(1), (4), and (b) of this section, $110,000 a bed for (a)(2) of this section, and $155,000 a                         
15 bed for (a)(3) of this section, adjusted for inflation each year at a rate equal to the percentage                      
16 increase in the Consumer Price Index for urban wage earners and clerical workers for                                    
17 Anchorage, Alaska, during the previous calendar year as determined by the Bureau of Labor                               
18 Statistics, United States Department of Labor;                                                                          
19            (2)  if construction of a new facility is authorized, the municipality shall                                 
20 initially own the facility, and the state shall enter into a long-term lease-purchase not to                            
21 exceed 25 years with the municipality to operate the facility and to receive ownership of the                           
22 facility at the end of the lease; the annual lease payment for a new facility may not exceed                            
23 $11,000 a bed;                                                                                                          
24            (3)  if expansion of an existing facility is authorized, the state shall initially                           
25 enter into a joint ownership agreement with the municipality of the expanded facility, enter                            
26 into a long-term lease-purchase not to exceed 25 years of the municipality's interest in the                            
27 facility, operate the facility, and receive ownership of the facility at the end of the lease;                          
28 payments under the lease may not exceed $16,700 a bed for the Bethel facility and $14,600 a                             
29 bed for the Fairbanks, Anchorage, and Seward facilities;                                                                
30            (4)  the lease-purchase agreement must contain terms providing that the                                      
31 commissioner of corrections may terminate for cause any contract for operating the facility.                            

01       (d)  The authorization given by (a)(4) of this section is subject to the following                                
02 condition:  expansion of the facility may only occur if the expansion is funded by up to                                
03 $30,000,000 in federal receipts.                                                                                        
04       (e)  The authorization given by (b) of this section is subject to the following                                   
05 conditions:                                                                                                             
06            (1)  that the city of Seward, to the satisfaction of the Department of                                       
07 Corrections, makes land available for housing development; and                                                          
08            (2)  that the Alaska Vocational Technical Center develops a corrections                                      
09 training program.