HOUSE BILL NO. 149                                                                                                            
                                                                                                                                
     An Act  relating to correctional  facility space  and to                                                                   
     authorizing the Department  of Corrections to enter into                                                                   
     an  agreement to  lease facilities  for the  confinement                                                                   
     and  care  of  prisoners   within  the  Kenai  Peninsula                                                                   
     Borough.                                                                                                                   
                                                                                                                                
REPRESENTATIVE  MIKE  CHENAULT  explained  that  HB  149  was                                                                   
introduced to  transfer the authority to construct  a private                                                                   
prison  from   Ft.  Greely/Glennallen   area  to   the  Kenai                                                                   
Peninsula Borough.                                                                                                              
                                                                                                                                
The  construction  project would  provide  the  Kenai/Nikiski                                                                   
area with an  additional stable economic base.   In addition,                                                                   
the State  of Alaska  has been  supplementing the economy  of                                                                   
Florence, Arizona  around $20 million  dollars per year.   He                                                                   
emphasized that  it makes  sense to bring  money back  to the                                                                   
State of Alaska.                                                                                                                
                                                                                                                                
MARGOT  KNUTH,  ASSISTANT  ATTORNEY  GENERAL,  DEPARTMENT  OF                                                                   
CORRECTIONS,  provided information  on  the legislation.  She                                                                   
read from a  letter written by Governor Tony  Knowles.  [Copy                                                                   
on File].                                                                                                                       
                                                                                                                                
Ms. Knuth  noted that the prison  expansion is based  on five                                                                   
principles:                                                                                                                     
                                                                                                                                
      •Protecting the public's safety;                                                                                          
      •Addressing statewide and regional needs;                                                                                 
      •Consistency with best correctional practices;                                                                            
      •Community participation through government-to                                                                            
                -government transactions; and                                                                                   
      •Cost-effectiveness.                                                                                                      
                                                                                                                                
The  Kenai private  prison idea  could  meet these  important                                                                   
objectives.   She   noted  that   it   is  clear   that   the                                                                   
Legislature's  intent  in House  Bill  53  was to  develop  a                                                                   
private prison at  the Fort Greely site.  The  State has been                                                                   
attempting  to do that  since.   She added  that there  is no                                                                   
doubt any  change of  focus or development  of a  new private                                                                   
prison plan would involve legislative action.                                                                                   
                                                                                                                                
Ms. Knuth discussed  the Governor's plan indicating  that the                                                                   
most important  criteria was the addressing of  statewide and                                                                   
regional needs.   She  observed that  the statewide  needs do                                                                   
not always  meet the needs  of the inmates  to be  near their                                                                   
hometowns.   Ms. Knuth emphasized  the obligation to  look at                                                                   
pretrial needs  existing in Bethel  and Fairbanks as  well as                                                                   
the relocation of the Arizona prisoners.                                                                                        
                                                                                                                                
Ms.  Knuth  addressed  the  fiscal impact.    She  could  not                                                                   
determine  if the  proposal  would be  cost  effective.   Ms.                                                                   
Knuth  pointed out  the lack of  a capital  cost proposal  or                                                                   
indication of  cost limitations and  scope.  She  referred to                                                                   
experiences currently existing with the Anchorage jail.                                                                         
                                                                                                                                
Co-Chair Williams  noted that the  bill would be placed  in a                                                                   
Subcommittee,  Chaired  by  Representative  Mulder  and  with                                                                   
members Representative Bunde and Representative Moses.                                                                          
                                                                                                                                
HB 149 was HELD in Committee for further consideration.