SB 231-CORRECTIONAL FACILITY EXPANSION  VICE-CHAIR DONLEY informed members the committee already had one hearing on SB 231. He then took public testimony. MR. JIM ELKINS, representing the Ketchikan Gateway Borough, said all eleven communities mentioned in SB 231 see the legislation as an economic stimulus package that will have a positive long range impact. MS. JODY SIMPSON, a member of the Matanuska-Susitna Borough Assembly, stated support for the regional approach to prison expansion in SB 231. The Assembly believes it meets the needs of the various communities across the state. SB 231 will bring prisoners closer to home, their families, support networks and cultures, thereby increasing the probability of successful rehabilitation. The Assembly believes the economic impact associated with expanded facilities should be shared statewide and that Alaskans and contractors should be the ones to benefit from the $20 million currently spent in Arizona each year. The Assembly also believes the facility expansion should be publicly operated and managed. The Assembly suggests, if a private prison is considered, that an open, competitive process should be used to select the private operator. MR. JOHN MAPES, representing himself, stated support of SB 231 as it will put inmates in Alaska near their homes, families and support groups and it will save money by having inmates near medical personnel in programs already at the facilities. It will also save money on transportation costs. MR. T.C. KAMAI, Kodiak Chief of Police, said that the Kodiak jail is one of the oldest operating jails in the state at 60 years old. It is also one of the busiest contract jails and often operates at full capacity. The City of Kodiak is committed to working with the State of Alaska to replace and expand the Kodiak Community Jail because it believes it is of vital importance to the community, region and the State of Alaska. The City believes that replacement and expansion of the jail is essential to mitigating the liability that the City of Kodiak is burdened with under the current terms of its contract with the state. Despite efforts of jail staff to operate the jail in a professional manner, it finds the burden increasingly difficult to justify as the facility continues to age and liability increases daily. SB 231 will allow municipalities to bond for construction of correctional facilities. The Kodiak City Council passed a resolution in support of SB 231 in March of 2002. He urged committee members to support SB 231. MS. NANCY WEBB, testifying from Fairbanks, noted the Fairbanks Borough Assembly unanimously supported a resolution endorsing facility expansion at the Fairbanks Correctional Center. The Assembly supports an expansion of 100 beds to revitalize the building. The existing facility needs a new kitchen facility to adequately serve the inmates there. The Fairbanks Correctional Center is just a jail holding facility at this time with inadequate space to house inmates. MR. JERRY BURNETT, staff to Senator Lyda Green, sponsor of SB 231, explained the two changes made to the proposed committee substitute (Version P). · On line 8, the phrase "not later than July 1, 2006" was added. · On page 2, in subsection (b)(1), the three percent inflation factor was removed and replaced by "adjusted for inflation each year at a rate equal to the percentage increase in the Consumer Price Index for urban wage earners and clerical workers for Anchorage, Alaska, during the previous calendar year..." MR. BURNETT noted the Consumer Price Index rate has been lower than three percent for the past several years. That change was designed to address the concern raised by Senator Therriault. SENATOR THERRIAULT said the change satisfies his concern. He was not sure why the original inflation factor was set at three percent and why the authorization would be on the books forever. He asked if the new cut-off date will accommodate the problem with the Spring Creek facility. MR. BURNETT stated, "The Spring Creek - they had a concern about doing refinancing prior to 2006 although I understand there's a possibility that they could do it sooner, according to Deven Mitchell." SENATOR THERRIAULT moved to adopt Version P as the working document before the committee. VICE-CHAIR DONLEY announced that without objection, Version P was adopted. He then noted there was no more public testimony and that he would like to hold the bill until Senator Taylor returns. SENATOR ELLIS asked if Senator Taylor requested that the bill be held in committee. VICE-CHAIR DONLEY said he did not. SENATOR ELLIS asked what the additional concerns are with SB 231. VICE-CHAIR DONLEY said the cost is still a major concern. SENATOR ELLIS said, "It sounds like a Finance issue to me."