Sponsor Statement for HB 53
Senate Finance Committee Substitute
HB 53 does three things:
House Bill 53 includes Legislative intent expressing the will of the Legislature to assist in resolving the overcrowding of the prison facilities in Alaska. It acknowledges the most recent court order in the Cleary case, suggests activities that could help relieve overcrowding, and asks the administration to revisit the Cleary settlement agreement with the intent of relieving inappropriate obligations on the state.
House Bill 53 encourages and authorizes the Department of Corrections to enter a contract with the City of Delta Junction for use of prison beds at a prison on the deactivated Fort Greely military reservation. This Committee Substitute responds to the request from Delta Junction and the U. S. Army to assist in the conversion of Ft. Greely to a prison. The community held a vote and 62% supported the new use.
The conversion of Ft. Greely into a prison will preserve the economic life of the Delta region and save the U. S. taxpayers almost $50 million in demolition costs. It will also provide desperately needed prison beds so we can return our prisoners from Arizona and spend the money we currently spend in Arizona in Alaska, providing Alaskan jobs. The bill requires that Delta Junction use a process similar to the state procurement code in securing an operator for the prison.
Finally, HB 53 authorizes a lease with the Municipality of Anchorage to replace the Sixth Avenue Jail with a new jail facility. The Sixth Avenue Jail is a 35 year old facility that is worn out and extremely overcrowded. The capital cost for the jail is limited to $56 million.
Data indicates that the jail population will continue to grow, exacerbating the problem. The physical plant is not worth the cost of major remodel or renovation. Both Anchorage and the Department of Corrections have set this replacement as one of their top priorities. The new facility must be located within one mile of either the Anchorage Court House or the Cook Inlet Pretrial Facility.
The Senate Finance Committee adopted the House Rules Committee letter of intent recommending components that the Legislature would like to see in the operating contract between the City of Delta Junction and its operating contractor. The items include quality control issues and daily costs.
Last updated 03-25-98
Sponsor Statement for HB 53
Rules Committee Substitute
HB 53 does three things:
The Rules Committee Substitute for House Bill 53 adds Legislative intent expressing the will of the body to assist in resolving the overcrowding of the prison facilities in Alaska. It acknowledges the most recent court order in the Cleary case, suggests activities that could help relieve overcrowding, and asks the administration to revisit the Cleary settlement agreement with the intent of relieving inappropriate obligations on the state.
House Bill 53 encourages and authorizes the Department of Corrections to enter a contract with the City of Delta Junction for use of prison beds at a prison on the deactivated Fort Greely military reservation. This Committee Substitute responds to the request from Delta Junction and the U. S. Army to assist in the conversion of Ft. Greely to a prison. The community held a vote and 62% supported the new use.
The conversion of Ft. Greely into a prison will preserve the economic life of the Delta region and save the U. S. taxpayers almost $50 million in demolition costs. It will also provide desperately needed prison beds so we can return our prisoners from Arizona and spend the money we currently spend in Arizona in Alaska, providing Alaskan jobs.
Finally, it authorizes a lease with the Municipality of Anchorage to replace the Sixth Avenue Jail with a new jail facility. The Sixth Avenue Jail is a 35 year old facility that is worn out and extremely overcrowded. Data indicates that the jail population will continue to grow, exacerbating the problem. The physical plant is not worth the cost of major remodel or renovation. Both Anchorage and the Department of Corrections have set this replacement as one of their top priorities.
The House Finance Committee recommended a letter of intent recommending a components that the Legislature would like to see in the operating contract between the City of Delta Junction and its operating contractor. The items include quality control issues and daily costs.
Sponsor Statement for House Bill 53
Finance Committee Substitute
by
Representative Eldon Mulder
Republican, District 23
Muldoon & Fort Richardson
House Bill 53 encourages and authorizes the Department of Corrections to enter a contract with the City of Delta Junction for use of prison beds at a prison on the deactivated Fort Greely military reservation. This Committee Substitute responds to the request from Delta Junction and the US Army to assist in the conversion of Ft. Greely to a prison. The community held a vote and 62% supported the new use.
The conversion of Ft. Greely into a prison will preserve the economic life of the Delta region and save the U. S. taxpayers almost $50 million in demolition costs. It will also provide desperately needed prison beds so we can return our prisoners from Arizona and spend the money we spend in Arizona in Alaska, providing Alaskan jobs.
Section 1. Authorizes municipalities to provide or enter into agreements to provide prison services.
Section 2. Adds provision of facilities for the confinement and care of prisoners to the extraterritorial jurisdiction of municipalities.
Section 3. States findings of special circumstances and needs and:
Section 4. provides that when contracting as authorized in Section 3 the Commissioner is exempt from AS 33.30.031 (a) and (c) which means:
(a) the Commissioner of Corrections is not required to make a finding that suitable state facilities are not available, and the specification of the ability to provide services is waived.
(c) allows the Commissioner to exempt a private facility from competitive bid requirements.
Section 5. Provides an immediate effective date.
Sponsor Statement for HB 53
by
Representative Eldon Mulder
Republican, District 23
Muldoon & Fort Richardson
Alaska prisons are overcrowded -- and the problem is growing. (See attached chart)
It is obvious that we need additional prison capacity in Alaska. The Department of Corrections reports that it is regularly exceeding maximum and emergency capacities under the Cleary Final Settlement Agreement by over 100 prisoners. Since February of 1995, Alaska has had over 200 prisoners in a private facility in Arizona. In FY98 we will enhance the Arizona economy by about $5 million and employ Arizonans to guard Alaskan prisoners in a prison in Florence, Arizona.
State or federal courts have not taken over the Alaska prison system as they have in many other states. However, we are in contempt of the Court supervised Cleary Agreement. Fines have been assessed, although not yet paid. The potential jeopardy is the Court will direct the fines be paid to specific prisoner activities or will begin to mandate release of prisoners to solve the overcrowding. Neither option is acceptable.
We can solve this problem. While we solve it, we can:
The question is how to expand prison capacity efficiently, economically, and in the context of limited available state capital funds. We have a few options to resolve our prison capacity problem.
We could continue to add space to our small and inefficient prisons with daily costs averaging over $105 per inmate day. That would increase the number of state employees and require significant state dollars for capital. State prisons must compete with schools, roads, harbors and deferred maintenance funding. This leaves preciously few state capital dollars available to build a new state prison.
Sending prisoners out of state is less costly. However, the solution is only temporary. The types of prisoners we can send outside are limited in number. Our Courts have frowned on exporting prisoners as a permanent solution to capacity problems. Out-of-state prisons bring transportation and management challenges greater than in state prisons and take $5 million out of Alaskas economy.
A private facility provides many advantages to Alaska:
The House Finance Sub-Committee on Corrections held interim hearings on the topic of prison privatization. It found over twenty-five states have entered into agreements with the private sector to construct and operate prisons. They have been successful in reducing the costs of incarceration and maintaining security for residents of the state.
The cost advantage of a private facility can be significant. Studies show that private prisons are less expensive to operate than state run facilities and are just as safe. A National Conference of State Legislatures study in January of 1996 reported private prisons in Texas saved 14% and in Louisiana saved 8%.
There is a strong possibility that the cost per inmate day of a private facility in Alaska will be closer to the cost of the Arizona facility than Alaskas average cost. The cost per inmate day at the Arizona facility is about $70.00. Alaskan facilities average cost per inmate day is about $105.00.
Bringing competition into the market place offers an opportunity to reduce operating costs in our Department of Corrections. Tennessee, a state with both public and private prisons, found that private prisons have a very positive effect on state facilities. The new, competitive market place forced the state system to improve or change many traditional management practices. The result has been healthy savings for the state.
A private prison resolves the problem of the state front-ending the costs of construction. The private contractor will finance the facility then lease it to the state as it is used. A private sector facility will avoid the 25% to 45% extra cost incurred in public construction projects. It will be operated more efficiently than our current prisons.
A private contractor can bring new ideas to our state corrections system. If the prison happens to end up part of a national chain, it will bring the experience gained in many facilities in other states. If a national chain teams up with local contractors, we will get the benefit of designs that work in prisons and construction techniques that fit Alaskas environment. A private sector contractor could begin serving prisoners as soon as 18 months after contract award and securing property for the facility.
HB 53 encourages the Department of Corrections to address the capacity and efficiency problems by acquiring one new prison by lease or lease/purchase from a private contractor or from a private contractor through a municipality.
A new private prison facility built under a lease/purchase agreement will:
A new private prison facility acquired under a lease agreement:
HB 53 responds to concerns raised by public employees at the interim hearings. It requires that the correctional officers in the private institution be trained to the same standards as state correction officers. We believe that this provision will protect the integrity of the prison system while taking advantage of lower costs and innovative management techniques.
The specific location of the new prison is left to the discretion of the Department of Corrections. We expect the Department will respect the planning and zoning requirements of local governments. There is precedent for this working relationship in the process the Department uses in acquiring new community residential centers. We expect the Department to consider efficiency of operation and community concerns before it makes a final decision on locating the new prison.
HB 53 also clarifies state law to make specific the implied power to contract for correctional services in and out of state and to contract with a municipality for prison services.
HB 53

The Chart reflects all inmates including state institutions, out-of-state prisons,
CRCs, and treatment beds. The source for the data is the Department of Corrections and Legislative Finance