Session: State Capitol, Room 432 Juneau, AK 99801-1182 Toll Free: (800) 469-3779 Phone: (907) 465-3779 Fax: (907) 465-2833 Interim: 145 Main Street Loop, Suite 221 Anchorage, AK 99611 Phone: (907) 283-7223 Fax: (907) 283-7184

Sponsor Statement for HB 149
Private Prison in Kenai

An Act expressing legislative intent regarding correctional facility space; relating to correctional facility space; 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; and providing for an effective date.

House Bill 149 was introduced simply to transfer the authority to construct a private prison from Ft. Greely/Glennallen area to the Kenai Peninsula Borough.

This will create a construction project worth an estimated $67 million dollars (this is a sponsor staff estimate) and will 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 upwards of $20 million dollars per year. It would only make sense to bring those dollars back to Alaska.

Currently, I am putting together the specific cost multiplier benefits that will occur when the facility is constructed in Kenai. Future direct economic impacts as a result of stable economic development will be an important portion of the study that will be available in a few days.

Thank you for your time and consideration. If you have any questions please call Sue in my office at (907) 465-3779.

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