SB 306 G.O. BONDS FOR CORRECTIONAL FACILITIES                        
                                                                              
 LAURIE OTTO, Deputy Attorney General, explained SB 306 was                    
 introduced by the Senate Rules Committee at the request of the                
 Governor.  Prisons are overcrowded and have not been expanded since           
 1988.  Debate has focussed on whether to issue general obligation             
 bonds to build more prisons or to privatize future prisons.  The              
 proposed committee substitute would provide for a general                     
 obligation bond vote on the ballot to expand regional facilities,             
 and allow the Municipality of Anchorage to enter into lease                   
 agreements with private prison contractors.                                   
                                                                               
 JOHN YARBOR, Alaska State Employees Association, testified he                 
 originally supported the bill, but is opposed to Section 7 which              
 appears to allow the state to contract out for private prison                 
 employees.  He asked the committee to include a letter of intent to           
 accompany the bill to request that a 15 percent savings be shown in           
 prisons that are privatized.                                                  
                                                                               
 SENATOR ADAMS asked Mr. Yarbor if he had prepared a draft letter of           
 intent.  MR. YARBOR had not.                                                  
                                                                               
 SENATOR ADAMS discussed a draft letter of intent for the                      
 committee's approval which would require the Department of Labor to           
 keep statistics on prison work forces, union and non-union, showing           
 the percentage of Alaskans hired.                                             
                                                                               
 CHAIRMAN TAYLOR noted version F of the proposed committee                     
 substitute does not make any reference to the Municipality of                 
 Anchorage.                                                                    
                                                                               
 SENATOR GREEN moved to adopt version F as the Senate Judiciary                
 committee substitute.  There being no objection, the motion                   
 carried.                                                                      
 SENATOR ADAMS moved adoption of the amendment submitted by the                
 Department of Revenue.  There being no objection, the motion                  
 carried.                                                                      
                                                                               
 SENATOR GREEN moved SCS CSSB 306(JUD) as amended from committee               
 with individual recommendations, with Senator Adams' letter of                
 intent.  There being no objection, the motion carried.