Legislature(1997 - 1998)

02/10/1998 01:50 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
HOUSE BILL NO. 53                                                              
                                                                               
"An Act relating to the authority of the Department of                         
Corrections to contract for facilities for the                                 
confinement and care of prisoners, and annulling a                             
regulation of the Department of Corrections that limits                        
the purposes for which an agreement with a private                             
agency may be entered into; authorizing an agreement by                        
which the Department of Corrections may, for the                               
benefit of the state, enter into one lease of, or                              
similar agreement to use, space within a correctional                          
facility that is operated by a private contractor, and                         
setting conditions on the operation of the correctional                        
facility affected by the lease or use agreement; and                           
giving notice of and approving a lease-purchase                                
agreement or similar use-purchase agreement for the                            
design, construction, and operation of a correctional                          
facility, and setting conditions and limitations on the                        
facility's design, construction, and operation."                               
                                                                               
MARGARET PUGH, COMMISSIONER, DEPARTMENT OF CORRECTIONS                         
provided members with a handout titled, What is the Problem?                   
(Copy on file).  She observed that there are 3,239 inmates                     
in Alaskan correctional facilities.  The emergency capacity                    
of the Department of Corrections is 2,691 inmates.  The                        
Department is over capacity by 548 inmates.  The state of                      
Alaska has been ordered by the Court to find a way to reduce                   
its prison population to 2,691 by May 1, 1998.                                 
                                                                               
Commissioner Pugh reviewed the handout:                                        
                                                                               
What Is the Problem?                                                           
                                                                               
* Alaska's prison's and jails are severely overcrowded;                        
                                                                               
* There is no space for new criminals;                                         
                                                                               
* Projections show system will grow by 200 prisoners each                      
year;                                                                          
                                                                               
* The State is under Court Order to decrease                                   
overcrowding;                                                                  
                                                                               
* The State is being assessed fines for overcrowding; and                      
                                                                               
* No legislative action has been taken.                                        
                                                                               
What Has Been Done?                                                            
                                                                               
* In 1995, the Department sent over 200 prisoners out of                       
State;                                                                         
                                                                               
* In 1996, "Protecting the People" was introduced by the                       
Criminal Justice Cabinet;                                                      
The Governor introduced the G.O. Bond bill to implement                        
"Protecting the People";                                                       
Legislation to build a private prison in Anchorage was                         
discussed ; and                                                                
An initiative was placed on the ballot to block the                            
building of a private prison in Anchorage.                                     
                                                                               
* In 1997, the Criminal Justice Cabinet offered to work                        
with the Legislature;                                                          
The Legislature discussed issues and introduced a                              
variety of bills, but no legislation passed; and                               
A ballot measure passed effectively blocking                                   
construction of a prison in South Anchorage.                                   
                                                                               
* In 1998, the Governor introduced a bill for Phase I of                       
a statewide expansion.                                                         
                                                                               
What must we do right away?                                                    
                                                                               
Givens:                                                                        
                                                                               
* To do "nothing" is unacceptable;                                             
                                                                               
* The Governor will not commute sentences; and                                 
                                                                               
* The State needs to move over 500 prisoners by May 1.                         
                                                                               
Options:                                                                       
                                                                               
* We can use more CRC beds for low risk offenders;                             
                                                                               
* We can send more dangerous prisoners out-of-state; and                       
                                                                               
* We can place non-dangerous misdemeanants in tents or                         
other temporary structures on prison grounds surrounded                        
by a secure fence.                                                             
                                                                               
What are our long-term choices?                                                
                                                                               
* The legislature can review, amend, and adopt the                             
Governor's statewide expansion plan (HB 368, SB 267).                          
                                                                               
* The legislature can expand Spring Creek, replace Sixth                       
Avenue Jail, expand the state prison at Palmer, and                            
build a private prison at Palmer (SB 179).                                     
As proposed, this does not meet DOC principles.                                
                                                                               
* The legislature can authorize the conversion of Ft.                          
Greely at Delta Junction into a medium-security prison                         
for 800 prisoners (HB 53).  As proposed, this does not                         
meet DOC principles.                                                           
                                                                               
In response to a question by Co-Chair Hanley, Commissioner                     
Pugh reviewed the Department of Corrections principles.  To                    
warrant serious consideration, any prison or jail expansion                    
proposal must be:                                                              
                                                                               
- Safe;                                                                        
- Statewide (comprehensive and meets regional needs);                          
- Consistent with best correctional practices;                                 
- Involve community participation (government to                               
government); and                                                               
- Cost effective.                                                              
                                                                               
Co-Chair Hanley observed that HB 53 does not meet the                          
Administration's statewide comprehensive concern.                              
Commissioner Pugh agreed and added that Bethel is the most                     
chronically overcrowded correctional facility.                                 
                                                                               
Co-Chair Hanley asked the total per diem cost to implement                     
the Governor's plan, including capital and operating                           
expenses.  He observed that the Palmer facility expansion                      
would cost $16.5 million dollars for 221 beds.  He clarified                   
that the total per diem amount should include construction                     
costs amortized over 20 years.                                                 
                                                                               
Co-Chair Therriault stressed that the Legislature needs the                    
Department of Corrections to provide it with numbers.                          
Commissioner Pugh stated that she would complete the math to                   
the best ability of the Department.  She noted that she has                    
questions about the cost of implementing HB 53.  She                           
questioned what the $70 dollar a day rate includes.  The                       
Department of Corrections' $100 dollar per diem cost                           
includes; total operations at an institutional site,                           
institutional programs, correctional industries,                               
transportation, inmate health care, building and equipment                     
depreciation, capital replacements and all administrative                      
and support costs.  The Arizona contract does not include                      
inmate health care, major medical, transportation or inmate                    
gratuities.  She asked how many years the $70 dollar a day                     
rate would hold.  She questioned what would happen if the                      
contractor defaults.  She asked what is the total price of                     
converting and operating Fort Greely as a medium security                      
prison.                                                                        
                                                                               
In response to a question by Representative Martin,                            
Commissioner Pugh stated that the prison and jail                              
populations have out stripped the growth in state                              
population.  Crime is down, but arrests are up.  She stated                    
that "people are not getting out."  She quoted a previous                      
commissioner of the department as saying that the "stopper                     
is in the bathtub, and the water is on."  She added that                       
either a bigger bathtub has to be built or the facet has to                    
be turned off.  She maintained that the bathtub is over                        
flowing.                                                                       
                                                                               
Representative Martin asked if a Fort Greely facility would                    
ease the problem.  Commissioner Pugh stressed that she cares                   
about what happens to the people of Delta Junction.  She                       
maintained that she would like to work with the Legislature,                   
but added that she has concerns and questions regarding the                    
proposal.                                                                      
                                                                               
Co-Chair Therriault noted that the Cleary moderator stated                     
that the Governor's plan is not acceptable.  He observed                       
that the Governor's plan has not been established to be the                    
most cost effective.                                                           
                                                                               
Representative Kelly asked if the $70 dollar a day rate                        
compares with the Department's $100 dollar a day cost.  He                     
questioned if the Delta project would take the pressure off.                   
Commissioner Pugh acknowledged that the Fort Greely facility                   
would take pressure off.                                                       
                                                                               
Representative Kelly observed that the proposal would                          
alleviate part of the prison problem without putting an                        
additional burden on the state's capital appropriations.  He                   
asked Commissioner Pugh's to outline her objections to HB
53.                                                                            
                                                                               
Commissioner Pugh stated that she does not have a good feel                    
for the financing package and the total cost of the                            
legislation.  She did not know if the total cost of the                        
facility and operations could be covered at $70 dollars a                      
day.                                                                           
                                                                               
Representative Kelly asked if she would be supportive if the                   
cost of the facility and operations could be covered for $70                   
dollars a day.  Commissioner Pugh felt that $70 dollars a                      
day would be low if all the factors were taken into account.                   
She acknowledge that her level of comfort would be increased                   
if it can be demonstrated that $70 dollars a day would cover                   
all the costs.                                                                 
                                                                               
Commissioner Pugh provided members with a facility count in                    
response to questions from Co-Chair Hanley during a previous                   
meeting (copy on file).                                                        
                                                                               
Co-Chair Hanley clarified that his request was in response                     
to the insinuation that there would not be enough medium                       
security prisoners to fill 800 beds.  He noted that the                        
handout does not show security levels.  Commissioner Pugh                      
clarified that most prisoners do fall in the medium custody                    
level.  Co-Chair Hanley noted that projections show that the                   
state correctional facilities would be over capacity by                        
1,300 prisoners.  Commissioner Pugh noted that the State                       
paid for the full cost of halfway houses even when they were                   
not full. Contracts with halfway houses are now on a per                       
diem basis.  Prisoners at Palmer, Wildwood and in Arizona                      
are medium security inmates.                                                   
                                                                               
Representative Davies asked what kind of health care                           
facilities are in Delta Junction, who would be called in                       
case of a riot and are there additional costs for fire                         
safety.                                                                        
                                                                               
Commissioner Pugh noted that standards established by the                      
American Corrections Association state that a prison should                    
be located no farther than 50 miles from a major city of                       
10,000.  This standard was established to assure proximity                     
to emergency services.  She stressed that the problems                         
regarding HB 53 are not insurmountable.  She noted that                        
issues such as response to fires or riots would need to be                     
addressed.  Transportation in case of an emergency is also                     
an issue.  She noted that prisoners could be screened for                      
medical concerns.  She observed that there is a good runway                    
at Fort Greely, but added that it is more expensive to                         
airlift a person.  Representative Davies asked Commissioner                    
Pugh to attach a cost to these issues.  She stressed that it                   
will be difficult to get a true "apples to apples cost."                       
                                                                               
In response to a question by Representative Mulder,                            
Commissioner Pugh noted that the department is working on a                    
Request for Proposal (RFP) for out-of-state medium security                    
beds. The Arizona contract expires on June 30, 1998.  The                      
RFP would be for up to 600 beds.  Representative Mulder                        
pointed out that 600 beds are needed today.  The Fort Greely                   
facility would not come on line for a couple of years.                         
Commissioner Pugh acknowledged that it is a reasonable                         
expectation that 800 beds will be necessary.                                   
                                                                               
In response to a question by Representative Davis,                             
Commissioner Pugh clarified that security levels relate to                     
buildings and custody levels relate to the degree of                           
supervision.  Each inmate has a custody and security level.                    
There are five custody levels: maximum, closed, medium,                        
minimum and community.  The majority of inmates are in                         
medium custody.                                                                
                                                                               
Representative Davies pointed out that if prisoners for out-                   
of-state or rural facilities are screened for pre-existing                     
medical conditions and other needs than prisoners in                           
facilities near town would require more expensive care.                        
                                                                               
Co-Chair Therriault pointed out that the Legislature trusts                    
the Department to write a contract for out-of-state inmates.                   
He added that the Legislature would trust the Department to                    
write a contract to implement HB 53 if it is enacted.                          
Commissioner Pugh clarified that the out-of-state contract                     
will go out to bid as an RFP. She reiterated that she would                    
appreciate guidance.                                                           
                                                                               
(Tape Change, HFC 98 - 25, Side 2)                                             
                                                                               
MARGOT KNUTH, ASSISTANT ATTORNEY GENERAL, DEPARTMENT OF LAW                    
pointed out that many of the prisoners in overcrowded                          
institutions cannot be moved since they are pretrial                           
prisoners or serving short sentences. She pointed out that                     
regional facilities would need to be expanded.                                 
                                                                               
HB 53 was HELD in Committee for further consideration.                         

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