SENATE COMMUNITY & REGIONAL AFFAIRS COMMITTEE February 2, 1998 1:35 p.m. MEMBERS PRESENT Senator Jerry Mackie, Chairman Senator Gary Wilken , Vice Chairman Senator Dave Donley Senator Randy Phillips Senator Lyman Hoffman MEMBERS ABSENT All members present ALSO IN ATTENDANCE Senator Georgianna Lincoln COMMITTEE CALENDAR 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." - MOVED SB 246 OUT OF COMMITTEE PREVIOUS SENATE COMMITTEE ACTION SB 246 - No previous action to record. WITNESS REGISTER Ms. Betsy Robson, Assistant Director Division of Institutions Department of Corrections 4500 Diplomacy Drive, Suite 207 Anchorage, AK 99508 POSITION STATEMENT: Offered information on therapeutic treatment center. Dwayne Peeples, Director of Administrative Services Department of Corrections P.O. Box 112000 Juneau, AK 99811-2000 POSITION STATEMENT: Answered questions on SB 246 fiscal note. Dugan Petty, Director Division of General Services Department of Administration P.O. Box 110210 Juneau, AK 99811-0210 POSITION STATEMENT: Spoke to disposal of Harborview facility. Larry Streuber Division of Administrative Services Department of Health, Education & Social Services P.O. Box 110650 Juneau, AK 99811-0650 POSITION STATEMENT: Spoke to state's responsibility if Jim Baldwin, Assistant Attorney General Governmental Affairs Section Department of Law P.O. Box 110300 Juneau, AK 99811-0300 POSITION STATEMENT: Testified on SB 246. Ms. Sylvia Sullivan, President Alaskans For A Just Society P.O. Box 2684 Valdez, AK 99686 POSITION STATEMENT: Believes SB 246 poorly drafted. Representative Gene Kubina State Capitol Juneau, AK 99801-1182 POSITION STATEMENT: Testified in support of SB 246. Dave Dengel, City Manager City of Valdez P.O. Box 307 Valdez, AK 99686 POSITION STATEMENT: Testified in support of SB 246. ACTION NARRATIVE TAPE 98-1, SIDE A Number 001 SB 246 - HARBORVIEW DEVELOPMENTAL CENTER CHAIRMAN MACKIE called the Senate Community & Regional Affairs Committee meeting to order at 1:35 p.m. and noted all members present. He then brought SB 246 before the committee as the only order of business. BETSY ROBSON, Assistant Director, Division of Institutions, Department of Corrections (DOC), said the therapeutic treatment center program has far reaching impact in terms of public safety and also helping to reduce the number of victims in the state. A recent national study conducted by Columbia University Addiction and Substance Center implicated that there was an increase in the rate of arrest, conviction and imprisonment of persons involved in property, drug and violent crimes. In addition, it was found that alcohol was determined to be a bigger culprit in connection with murder, rape, assault, child and spousal abuse than any of the other drugs. SB 246 provides the statutory authority for the Department of Corrections to run a therapeutic treatment center as part of its correctional center. It also provides for the transfer of land and real property to the city of Valdez with the intention that a portion of the building will be leased to the Department of Corrections for use as a correctional treatment center. The fiscal note attached to the bill reflects nine months of operating funds. Ms. Robson said the department believes the program is an important asset to the Department of Corrections in that it is estimated that approximately 85 percent of the inmates incarcerated in Alaska had involvement with substance abuse at the time they committed their crimes. The department currently offers an array of treatment in terms of education, introduction to treatment and institutional outpatient model. The addition of an intense treatment program at Valdez would provide for a full continuum of care and would allow them to address the very seriously addicted offenders. Ms. Robson related that the Valdez program will accommodate approximately 60 prisoners, 50 of whom will be involved in various phases of intense treatment, while 10 will be in a pretreatment status. The length of the program will average 10 months with some inmates requiring up to 12 months of treatment. The inmates will be selected from Department of Corrections' facilities across the state. The program is intended for prisoners with severe substance abuse problems who, through their participation and treatment, will be considered for furlough and parole, so essentially they will be reaching a segment of their population that wouldn't otherwise be available for parole or furlough, or would be too high risk to be considered. Ms. Robson said special features of the program being proposed include the recognition of cultural relevance, as well as a strong transitional component. Ms. Robson advised that an important factor to the department as it has moved forward with this project has been the willingness of the Valdez community to work with the department in the development of the project. They have been very helpful to the department and have demonstrated a very strong willingness to participate in the planning and design of the facility, as well as its ongoing operation. Ms. Robson noted there are many positive features to the program, and one of the more positive features is the fact that it is a cost-effective program. An analysis done on the basic cost of care per day for operations shows it to be very comparable to the current cost of care per day in the other correctional facilities. A final cost savings for the state is the reduction in the recidivism rate which the department anticipates seeing as a result of the implementation of the program. She referenced a recently published document from the Office of Justice Programs that indicated that nationally the reports and evaluations coming in from other jurisdictions indicate that in fact there is a consistent reduction in recidivism among people who do participate in these types of programming. Number 145 SENATOR DONLEY asked how much of a reduction in recidivism she was speaking to. MS. ROBSON replied that the rate varies between programs, but it was found that overall most of the programs did realize a reduction in recidivism. Some of the studies she has seen show they are reduced as much as 30 percent. SENATOR DONLEY commented that if somebody were to come forward and present as a case that there will be a reduction in recidivism and base it on some studies, he would like to know the actual percentages being projected. Number 195 SENATOR DONLEY also asked if the Administration has a goal for the rate of reducing recidivism in the state of Alaska. MS. ROBSON responded that although she didn't have a number and it is something that they will be working on, they would like to see a recidivism rate that would be comparable to the national rates. SENATOR DONLEY pointed out that at some point this legislation will be in the Finance Committee, and that committee is very result- oriented in government. He suggested having at least a target of what they would hope to accomplish for this particular expenditure. CHAIRMAN MACKIE also suggested providing information on the cost savings back to the state because of the reduction in the rate of recidivism. Number 230 SENATOR WILKEN said Commissioner Pugh has indicated that early release will eliminate the need for prison beds, and he asked if the bill's fiscal note indicates that freeing up of beds. DWAYNE PEEPLES, Director of Administrative Services, Department of Corrections, responded that it is not reflected in the fiscal note. He added that the state is currently running 120 percent over maximum capacity, and this program would add additional beds to the system. SENATOR WILKEN also mentioned that he does not agree with the 2 percent CPI increase that is included in the department's fiscal note. CHAIRMAN MACKIE asked how much that 120 percent figure would be reduced if this facility were to come on line. MR. PEEPLES didn't have that information available, but he said he would get it and provide it to the committee. Number 254 DUGAN PETTY, Director, Division of General Services, Department of Administration (DOC), explained that the Harborview Developmental Center is being decommissioned by the Department of Health & Social Services although the Valdez Community Hospital continues to operate a portion of the facility. DOA became involved to coordinate an effort on the potential disposal of the project and has worked with the departments of Natural Resources, Transportation, Health & Social Services, Corrections, as well as the City of Valdez to negotiate an interim agreement. The interim agreement allows for a potential agreement on an ongoing lease arrangement if it is to be funded by the Legislature. Mr. Petty said that in any case, this facility must be decommissioned. DOA circulated the excess notice out to all state agencies, and there is no other utilization or use of the facility other than this potential use by the Department of Corrections and the Valdez Community Hospital. In the event this project does not move forward and there is no other potential use for the facility, it would have to go through some type of disposal process. Number 277 CHAIRMAN MACKIE asked if it was DOA's position that this is really the only practical and best use of this facility other than mothballing it. MR. PETTY replied that's all they are aware of at this point in terms of circulating it to other state agencies. SENATOR WILKEN asked if any private or nonprofit organization has expressed an interest in buying or leasing this building. MR. PETTY replied that he is not aware of any such expressed interest. He pointed out that DOA typically does not go out in a disposal process and advertise until they've determined that there is not an internal need and, at this point, they are focused on an internal need of an agency. SENATOR WILKEN asked who would own and operate the facility if this project were to go through. MR. PETTY replied that if a conveyance, which is provided for in Section 2 of the bill, were to take place with the City of Valdez, the city would become the owner of the property and would have responsibility for the ownership and operation of the property. The state would be disengaged from it with the exception of should there be a lease agreement entered into between the Department of Corrections and the City of Valdez. The Department of Natural Resources has the authority to dispose of excess real property. CHAIRMAN MACKIE questioned if the Administration has the ability to do this without a piece of legislation. MR. PETTY acknowledged that the Administration does have the ability to convey real property and DOA has the ability to surplus personal property. However, he also pointed out that the legislation establishes where the funds might come from for the project. Number 330 SENATOR HOFFMAN asked if it was the intent for the state to transfer the facility to Valdez and then lease it back for the treatment center. MR. PETTY acknowledged that was correct. Number 343 LARRY STREUBER, Division of Administrative Services, Department of Health and Social Services, said the decision was made three years ago to close Harborview Development Center and to move its residents out into the community. The last residents were out November 15 and the last program staff were out December 30. Mr. Streuber related that the state has put a lot of money into Harborview over the years and it is in very good condition. To protect the building, effective January 1, 1998, the Department of Health and Social Services implemented an asset protection program, and the one maintenance position that was retained will be on staff until June 30, 1998. However, if the building isn't transferred to the City of Valdez, it remains a state responsibility to protect that building and keep it in an asset protection mode. It has been estimated that if Harborview remains in state ownership in the asset protection mode, it will cost about $265,000 a year to protect and cover expenses of the facility. Number 375 JIM BALDWIN, Assistant Attorney General, Department of Law, directed attention to a letter received from a citizens' group relating to the legislation, and he said thinks the concerns raised in the letter can be answered and that there would not be any substantive problem with the bill. Mr. Baldwin said that while he agrees with Mr. Petty that it is not necessary to have a statute to authorize a disposal to a local government unit, there are specific tailored purposes of this particular transfer that are set out as conditions, and the department believes it would be beneficial to have these in law so that the transfer would be done in accordance with those conditions. That would set the tone for the transfer and require that there be a disposal with a lease-back provision, and under that lease-back provision, the state, to the extent that it provides for the operation of the facility, would be responsible for its actions in operating the facility. Number 407 SYLVIA SULLIVAN, President, Alaskans For a Just Society, testifying from Valdez, said her group is in support of the Harborview facility. However, she expressed her concern that there hasn't been a contract drawn up that the people of Valdez can see. She asserted the bill won't be any good unless the people of Valdez are agreeing to all the terms of the contract. She believes the bill is vague, ambiguous, not enforceable, and a terrible piece of drafting. JIM BALDWIN clarified that the bill is not intended to be a contract. It is intended to set out the elements for a contract that is yet to be negotiated. Number 478 SENATOR DONLEY made reference to a backup document provided by the Administration, and he said when talking about recidivism rates and corrections that they tend to give statistics based on very, very short periods of time. He noted the document did not identify over what period of time it reflects, and on a previous page it makes reference to the success rate after one year; however, he believes that is too short a time to get an accurate feel for whether something has really been a success or not. He would be interested in seeing a cost benefit analysis of investing money into a program like this on what the success rates have been for periods longer than one year. Number 495 CHAIRMAN MACKIE asked how many employees it would take to operate this treatment center. BETSY ROBSON answered that it would be 18 state employees, which would include the correctional presence, as well as approximately 11 contract staff that would be providing the treatment at the facility. Number 500 SENATOR PHILLIPS inquired if the department has considered contracting out to a nonprofit organization. BETSY ROBSON responded that they are looking at a DOC presence in terms of providing security and then there would be an RFP to contract a vendor for the treatment part of the program. Number 512 REPRESENTATIVE GENE KUBINA, testifying from Valdez, related that with the closure of Harborview , approximately 110 people lost their jobs. Two years ago the Legislature appropriated $250,000 to the City of Valdez to start working on a plan of how to reuse the Harborview facility. In last year's budget, $104,000 was appropriated to the Department of Corrections to work on this therapeutic community of up to 100 people. The legislation also required that the Department of Corrections track costs and the effectiveness of the program. He noted that the City of Valdez actually takes quite a bit of risk away from the state by taking over and maintaining that building. He also expressed concern on the effect it would have on the operation of the hospital and its future if nothing were to go into that building and it had be disposed of by the state. Number 546 DAVE DENGEL, City Manager, City of Valdez, testifying from Valdez, said when it became evident that Harborview Development Center was going to close, the city formed a task force to look for alternative uses for the facility. The city hospital is an integral part of that facility and therefore they needed to find some use that would keep the building operational so that they could retain that hospital. The task force considered several potential uses, and through elimination the alternative use that came to be the best fit for the facility and the community was the drug and alcohol treatment center. Mr. Dengel said the city has been working with the Department of Corrections for approximately 18 months to fine tune the project. The jobs that this center will bring are very important to the community although that number is substantially lower than when the Harborview Developmental Center was operating. Mr. Dengel related that the Valley City Council recently approved the interim agreement with the state that begins the process to transfer the facility to the city. The city will lease a portion of the facility back to corrections for the space that they need to operate their treatment center, and the city will work to find other tenants for the space that isn't needed by corrections. Mr. Dengel expressed his appreciation to Commissioner Pugh, her staff, and other state agencies for working with the city to identify alternative uses for the facility. He said the project is truly a partnership between the city and the state, and he encouraged moving the bill forward through the process. Number 574 SENATOR LINCOLN commended Mr. Dengel, the task force and people of the community for their hard work in finding alternatives for the Harborview facility. Number 580 There being no further testimony on SB 246, CHAIRMAN MACKIE said it was his intent to move the bill on to the next committee of referral, which is the Health, Education and Social Services Committee. SENATOR DONLEY moved and asked unanimous consent SB 246 and the accompanying fiscal notes out of committee with individual recommendations. Hearing no objection, it was so ordered. There being no further business to come before the committee, the meeting adjourned at 2:22 p.m.