SENATE BILL NO. 246 "An Act amending the definition of correctional facility to include a therapeutic treatment center; providing for the conveyance of the Harborview Developmental Center and appurtenant land to the City of Valdez for the purpose of conversion and lease of a part of the center for a therapeutic treatment center for the Department of Corrections; providing that such a land conveyance counts toward the general grant land entitlement of the City of Valdez; and providing for an effective date." Co-Chair Sharp announced that although this was the first official hearing on this bill, the committee heard a presentation from Dr. Gary Field of the Oregon Department of Corrections earlier relating to the establishment of the rehabilitation center. He invited BETSY ROBSON, Assistant Director in the Department of Corrections in charge of programs, to speak to the bill. Her testimony was as follows: "With the chair's permission, I'd like to hand out some documents that relate to the cost of care per day, and also the effectiveness of treatment." Co-Chair Sharp noted that information was probably already in each member's file, but instructed her to pass out her information just in case there were any differences. He urged her to continue with her presentation. "This bill would allow the DOC to establish the Valdez Therapeutic Community. For a long time, the DOC has recognized the need for intensive alcohol treatment and programs to address those offenders who are seriously addicted." "It is estimated that a large number, approximately 80 percent of the individuals involved in crime in our custody have problems with substance abuse. Currently the DOC provides a substance abuse education program, a pretreatment program and an outpatient model. We do not have available the intensive treatment to deal with these serious offenders." "If we were to open the Valdez facility, we would be looking at housing 60 medium/minimum inmates from across the state. These individuals would require - have been screened and known to require intensive treatment and would not otherwise be eligible for any form of early release unless they receive this type of treatment. The program will feature a nine to twelve month program of intensive treatment. It will have a strong after-care component and planning for after-care will begin when the inmate enters the program." "We feel that this program can have a significant impact on this population in terms of reduction of recidivism. Previously national expert, Gary Field from the Staying Out program in Oregon did testify before this committee as to the anticipated impact of this program. And in fact in the handout that we distributed, there is a pamphlet that shows research summary on recidivism rate." "The second section of this bill provides for the transfer of the Harborview Developmental Center and the adjoining property to the City of Valdez. The DOC, Department of Health and Social Services and the City of Valdez have been working closely with the Department of Admin. on developing an interim agreement to allow us to make renovations to the building and to continue forward with those renovations." Side B Tape 125, 10:20 a.m. "...In addition, the DOA has assisted with a surplussing process. They have canvassed other state departments and agencies and determined that there is no other agency with an interest in the building. Dugan Petty is here today on behalf of the DOA and would be available to answer any questions that individuals may have." "Also, I would like the permission of the chair to ask Larry Streuber from DHSS to come up and address the issue of what will happen if the building is not transferred to the City of Valdez." Co-Chair Sharp invited LARRY STREUBER, the Facilities/Planning Chief for the DHSS to speak to the committee. After introducing himself, Mr. Streuber's comments were as follows: "Harborview Development Center for many years was the institutional facility for the developmentally disabled population. Three years ago, the decision was made to close Harborview and the remaining 44 residents were transferred to community services. The last residents were out November 15th and the last program staff were out of Harborview December 30th." "Harborview is a valuable asset. It's valued - its replacement value is valued at over $40 million. To protect that asset - the State's asset, the building - the DHSS implemented an asset protection plan, a fancy name for mothballing. Basically what we did is divide the mechanical electrical operations of the building into logical units and reduced the energy necessary to keep the building functional but operating at a minimum capacity. And we retained one maintenance mechanic on staff. So out of the hundred or so people that were at Harborview as staff a few years ago, we still have one maintenance mechanic. However the Valdez Community Hospital is fully operational and does occupy 17 percent of the facility." "The point that we want to make today is that if the facility isn't transferred to Valdez it remains a state responsibility. The state will have the responsibility to protect the building to keep an asset protection." "In FY99, if the State has to continue asset protection for that building, we estimate that that cost will be about $265,000 and we don't have any money in our FY99 budget to do that." Co-Chair Sharp asked what would be the cost to demolish the building. Mr. Streuber did not know, but had heard the cost to demolish API would be $15 million. He estimated the cost to demolish Harborview would be less because it was a smaller building. Senator Phillips wanted to know if the City of Valdez had any other plans for the facility besides using it for the alcohol treatment program. Ms. Robson was unaware of any other plans. However, she did point out that DOC intended to occupy only a portion of the building, which they would lease from the city. Other portions of the building would be used by other agencies. Senator Adams asked for clarification on the daily operating rate. He noted a letter from Senator Ward stating the cost per bed was $124.39. DOC quoted the cost as $95.87. He wanted to know why the discrepancy existed. Ms. Robson was unsure and requested the committee allow Division of Administration Deputy Director Joe Reeves from DOC speak to the cost per day matter. Senator Pearce directed the committee's attention to the back page of one of the handouts the treatment costs were broken out and compared to incarceration costs. Senator Adams was satisfied with that information to answer his concerns. Senator Phillips wanted to know if there was an option to sell the building to the private sector. He compared that to the cost to the state to maintain the building or have it demolished. Ms. Robson asked DUGAN PETTY, General Services Director for the DOA be allowed to comment. Mr. Petty spoke to that issue as follows: "We've not taken this to the point where we have put it out for public dissemination. The City of Valdez has expressed an interest in the facility and if the decision were made not to move forward with the City of Valdez. Although, I would wonder if it wouldn't become something like the Whittier building - never had a market. We have not done that. We could do it should we not do it with the city. We've been..." Senator Phillips interrupted asking for other examples where the State surplussed buildings. Mr. Petty replied they had excessed a number of smaller buildings for off-site removal. The State had done a limited amount of larger buildings. He qualified that this was a new state and this was one of the first large buildings that had been looked at for decommission. They did not have much of a track record, he admitted, but they did believe that to the extent the transfer could benefit the community, the transaction made sense. By transferring to the city, it would not preclude the city from entering into an agreement with the private sector for use of the building, he added. However, the city needed part of the building for the community hospital. He believed the hospital was vital to the community. Senator Pearce wanted to know what the DOC was going to do with regard to the Cleary Order to relieve prison overcrowding if inmates could not be transferred to this facility. Ms. Robson responded part of the department's plan to reduce prison population was to send inmates to the alcohol treatment facility. If the program were not approved by the Legislature, they would have to look at other alternatives including violating the court ordered population cap or shipping more inmates to Arizona. The cost to house these inmates out-of-state would be approximately $106 per day, she estimated. Senator Pearce spoke of the plan the department submitted to the court to comply with the Cleary Order. She asked if it included placing inmates in the Harborview facility as part of the solution. Ms. Robson affirmed. Senator Pearce wanted to know if the inmates were not housed in state, what would be the average cost to house them out-of-state. Ms. Robson repeated that the average amount would be $106 per day. Senator Pearce noted that while the outside beds were cheaper, the inmates wouldn't receive any treatment while being housed out of state. Ms. Robson said they would receive very limited treatment. It would be whatever treatment was available at the facility, but would not be enough to meet their needs. Senator Pearce observed that in order to comply with the court order, these inmates needed to be placed somewhere. In other words, these would not be new beds, and at some point the treatment program would have to be provided under the Cleary Order. Ms. Robson agreed that was a fair assessment of the situation. Co-Chair Sharp didn't recall Harborview being part of the prison relief package the committee put together. Senator Pearce said while it was not part of the short-term/long- term plan to house inmates in tents and ship others out of state, the Harborview facility was approved by the Legislative Budget and Audit Committee last year and was included in the supplemental budget package. She shared that one stipulation for the program's approval was that the cost per day of incarceration, less cost for treatment, had to be below the average cost per day system-wide. She explained that part of the budget plan for the department was an under $8 million increase, which did not include these 60 beds because funding for them was covered under a fiscal note. Whether the Legislature passed this bill or not, they would need to somehow fund the 60 beds to meet the court order, she warned. It was up to the Legislature whether they wanted to fund the 60 beds through the Harborview program or by some other means. Co-Chair Sharp noted the arrival of the bill sponsor, Representative GENE KUBINA, and invited him to join the committee. He also invited Senator GEORGIANNA LINCOLN to join the committee. Senator Kubina testified as follows: "Harborview Developmental Center - DHSS has wanted for years to get out of the institution of Harborview. So, in doing so, they have kept the number down, not allowed more people to go in that facility, making the cost per person extremely high, which in essence, forced the closure of that facility." "The City of - over the last two years, the Legislature first funded $250,000 to do a - to find out how to use - what way we could use Harborview. Basically, Harborview is a facility that's made to house people. Last year, the Legislature funded $400,000 and they put stipulations in that I think you are all aware of so I won't read them. But it says that we will do this program if they can do it where the cost per inmate day does not exceed statewide average during that day excluding treatment. And then they also - we also put in the budget that we would have these programs to monitor it so that we could actually show or prove whether we're saving money by doing it or not." "The City of Valdez has gone to a great length to try to bring the cost down, providing the facility, work with the department. They are in essence, in the lease back to the department, including heating, electricity and maintenance. There is no - they have taken all the risk on that building not being a good building and having to cost too much. All of that is in the cost. So this is what people in DHSS been saying for years where the building is expensive. We don't buy that we've never bought that. We just think they wanted to get out of having a quote an institution." "Mr. Chairman, we had a gentleman from Oregon here talk about the program. I won't go into that. I know you sat through it and everybody that has dealt with these programs tell you this program is great. Oregon not only had one that they started almost 20 years ago. They've added three more because this program works so well in keeping people out of prison." "Mr. Chairman, the City of Valdez has worked in good faith. They have a million dollars ready to put into the building to bring it - make the changes that corrections needs to use the facility for this proposal. Obviously, they don't want - they're not going to spend that money until we know that the proposal is there. We have followed the letter of the law. Even though the Governor vetoed this, the department has agreed to follow it, the City of Valdez has done everything they can to come in with those stipulations and we would like to go forward with the program." "I think - I'm convinced that several years down the line, we're all going to be happy that it happened because the program is going to be successful. We're going to be doing something to keep people out rather than putting them back." He concluded by offering to answer any questions. Co-Chair Sharp invited Senator Lincoln to speak. She testified as follows: "I would just add to that that in looking at the 60 bed minimum and medium custody inmates that would be there, that frees up 60 more beds that we so desperately need within the state. And I think when you look at the cost effectiveness as was mentioned earlier, the average cost of being $106 compared to the $95.87 - I think that's through the department and the community that they have worked very closely together to come under that figure. And have a very cost effective program here, one that's needed and also that I think that the planning process that both the City of Valdez, and the department and the administration in all working together for this planning process." "It wasn't anything that was just put together real rapidly and without any thought given to the benefits to the State Of Alaska. So I think it really is - if you look at it - overall it's cost effective and we certainly do have the need there." Co-Chair Sharp next called upon DON DAPCEVICH, the Executive Director for the Governor's Advisory Board on Alcoholism and Drug Abuse. After introducing himself, Mr. Dapcevich gave the following presentation: "My board has instructed me to come and speak before you in support of this legislation." "All Alaskan's had the opportunity about ten days ago to watch a very impressive series. And I hope some of you saw that series titled 'Moyers on Addiction'. It was run nationally on public television all across the State Of Alaska. The last hour of that program was devoted to the prison system's response to treatment and it focused on the State of Arizona. And they have recently come to realization that the most effective, the most fiscally responsible way to deal with the overcrowding in their prisons is to treat the addictions of their prisoners. And I think this is the opportunity that you have to respond to that in Alaska." "I had the good fortune several years ago to act as a consultant to the State of Texas when they began their foray into treatment communities for their prison populations. And they have proven as you can see in the material provided by the DOC to you, been quite successful in their ability to treat prisoners. It's a relatively small investment with a control infrastructure cost to the state that can be measured. It's quantifiable. It's qualafiable." "You have an opportunity to use the performance measures that you've established the outcome based funding criteria that you're establishing to measure the effectiveness of this treatment program. And if it doesn't work over a very short period of time, beginning in the second year, you'll know if it hasn't worked and you can either continue to fund it based on it's effectiveness in efficacy in treating this population, or you can defund it." "But here's an opportunity where the community is willing to accept this facility. And that's pretty strange in this day and age for a community to be willing to not only accept this facility in their community, but to participate with you in the cost of operating the facility. So it appears to be from our perspective, a win, win; win situation for the state. A very small investment, a promised return on that investment over a very short period of time that will actually save you dollars in the long run. So we would encourage you to fund this facility and get it on the road." Representative Kubina announced that he needed to leave the meeting to satisfy a call placed on all House of Representative members. He wanted the members to that know his leaving did not imply apathy for the work the committee was doing, but that he had no other choice but to go to the House chambers. Co-Chair Sharp noted the need and thanked the representative for the explanation. Co-Chair Sharp commented on conflicting testimony where the department said Arizona prisoners received limited treatment and Mr. Dapcevich said they had an exemplary program. Senator Adams asked if the Co-Chair was ready for a motion to move the bill from committee. Co-Chair Sharp said he was waiting for more comments. There were no others signed up to testify. He ordered the bill held in committee.