HOUSE BILL NO. 498                                                                                                            
                                                                                                                                
     An   Act   expressing   legislative   intent   regarding                                                                   
     privately  operated  correctional   facility  space  and                                                                   
     services; relating  to the development and  financing of                                                                   
     privately  operated  correctional   facility  space  and                                                                   
     services; authorizing  the Department of  Corrections to                                                                   
     enter into an agreement for  the confinement and care of                                                                   
     prisoners  in privately  operated correctional  facility                                                                   
     space; and providing for an effective date.                                                                                
                                                                                                                                
Representative  Davies MOVED  to  ADOPT committee  substitute                                                                   
#22-LS1345\O,  Luckhaupt,  4/16/02,   as  the  working  draft                                                                   
before  the Committee.    There being  NO  OBJECTION, it  was                                                                   
adopted.                                                                                                                        
                                                                                                                                
Representative Harris advised  that a State operated facility                                                                   
had been added  in Bethel to the Yukon Kuskokwim  Center, and                                                                   
that the  Whittier facility  would be  reduced to 1000  beds.                                                                   
The  amended bill  consists of  those two  changes and  would                                                                   
move  forward  as  a  compromise   with  the  Administration.                                                                   
Representative  Harris believed that  the amended  bill would                                                                   
be  "stronger" than  the original  version.   He pointed  out                                                                   
that Bethel was  supportive of the proposed  change and would                                                                   
address needs throughout the State.                                                                                             
                                                                                                                                
Representative Davies questioned the land status material.                                                                      
                                                                                                                                
JIM KUBITZ,  (TESTIFIED VIA TELECONFERENCE),  ALASKA RAILROAD                                                                   
CORPORATION  (ARRC), explained  that  it would  consist of  a                                                                   
long-term lease and  that there would be a  master lease with                                                                   
the  City of  Whittier.   He  pointed out  that  there is  an                                                                   
agreement in place regarding how to proceed with Whittier.                                                                      
                                                                                                                                
Vice-Chair  Bunde MOVED  to report  CS  HB 498  (FIN) out  of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying new fiscal notes.   There being NO OBJECTION, it                                                                   
was so ordered.                                                                                                                 
                                                                                                                                
CS  HB  498   (FIN)  was  reported  out  of   Committee  with                                                                   
"individual  recommendations" and  with new  fiscal notes  by                                                                   
the Department of Corrections  and the Department of Revenue.