22^nd Alaska State Legislature
News from Representative Mike Chenault

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

HB 149 Authorizes Private Prison in Kenai
Chenault Seeks to Help Peninsula Economy - Lower State Costs

(JUNEAU) -- A bill introduced in the House of Representatives to allow a private prison in Kenai would bring hundreds of jobs, millions of dollars in construction and operations payroll, and improved economic stability to the Kenai Peninsula Borough, its sponsor said today.

Rep. Mike Chenault (R-Nikiski) introduced House Bill 149 on Monday to authorize the state to house prisoners in Alaska's first private prison, which could be built on a former military base adjacent to an existing state-owned Wildwood Correctional Center in Kenai.

"Alaska has seen a huge increase in the amount of money spent on corrections in recent years, but a lot of this money goes to send our criminals to private prisons in Arizona," said Chenault. "If the state is going to spend money on private prisons, and we're looking for economic diversification on the Kenai, why not build a prison here and keep the money close to home?"

With existing state-run facilities filled to capacity, Alaska has for years been paying to incarcerate prisoners in private prisons in Arizona. The increasing costs to transport, house, board, and medically care for prisoners has prompted the state to consider a private in-state prison that could cost the state less, keep Alaska prisoners closer to home and provide economic benefits to the community where it is located.

HB 149 would amend state law to grant the Kenai Peninsula Borough the authority to contract with the state Corrections Department to house prisoners in a facility to be built by a third-party private entity. The borough recently decided to work on a contract with Corrections Group North, a joint venture including the Kenai Native Association, Cornell Corrections, and the contracting joint venture Livingstone Sloane Inc. Neeser/VECO. The Native association owns 4,700 acres of former military land next to Wildwood prison.

The bill requires the contractor to agree to build a minimum-security facility capable of housing at least 800 prisoners, and of operating in full compliance with state prison laws, for at least 20 years. Such a facility would cost about $60 million to build, create 250 steady jobs, and generate an estimated $600 million in state expenditures for construction and operations over 20 years, Chenault said.

"This bill should allow us to provide an important state service while diversifying the Kenai Peninsula's economy and providing steady employment," Chenault said. "It's a win-win situation. If the people and the Legislature get behind it, I'm looking forward to thorough hearings and early passage."

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