Bill Text: AZ HB2069 | 2018 | Fifty-third Legislature 2nd Regular | Introduced
Bill Title: Private prisons; contracts; termination
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-01-10 - House read second time [HB2069 Detail]
Download: Arizona-2018-HB2069-Introduced.html
PREFILED JAN 03 2018
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REFERENCE TITLE: private prisons; contracts; termination |
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State of Arizona House of Representatives Fifty-third Legislature Second Regular Session 2018
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HB 2069 |
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Introduced by Representative Bolding
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AN ACT
amending sections 31‑255, 41‑1604.14, 41‑1608, 41‑1609 and 41‑1609.01, Arizona Revised Statutes; repealing sections 41‑1609.02, 41‑1609.03 and 41‑1609.04, Arizona Revised Statutes; relating to private prisons.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 31-255, Arizona Revised Statutes, is amended to read:
31-255. Alcohol abuse treatment fund
A. The alcohol abuse treatment fund is established.
B. Notwithstanding section 31‑254, the director of the state department of corrections shall deposit in the fund the lesser of sixty‑seven per cent percent or fifty cents per hour of the monies earned by persons sentenced to the department pursuant to section 28‑1381, 28‑1382 or 28‑1383 for work performed. The director shall deposit the remaining monies in the wage earning prisoner's spendable account. The director shall take the mandatory deductions pursuant to section 31‑254.
C. Monies in the alcohol abuse treatment fund are subject to legislative appropriation to the department, and the director shall use the fund monies to provide alcohol abuse treatment and rehabilitation services to persons sentenced to the department pursuant to section 28‑1381, 28‑1382 or 28‑1383 and to reduce the calculated cost of the per diem rate for treatment and rehabilitation services that are provided by a private prison authorized pursuant to section 41‑1609.
D. Monies in the alcohol abuse treatment fund are exempt from section 35‑190 relating to lapsing of appropriations.
Sec. 2. Section 41-1604.14, Arizona Revised Statutes, is amended to read:
41-1604.14. Drug and alcohol treatment programs; annual report
A. On or before December 1 each year, the director shall report on the drug and alcohol treatment programs available to offenders in this state who are under the jurisdiction of the department. The report shall include:
1. A description of each program, including whether the program is for offenders who are imprisoned or for offenders who are on community supervision or parole.
2. The number of offenders who are currently receiving services from a program and the total number of offenders who received services over the previous twelve months.
3. The cost per offender for each program and the source of the monies that are used.
4. The name of each drug and alcohol treatment program provider.
5. A comparison of the drug and alcohol treatment programs that are offered to:
(a) Offenders who are in a department facility.
(b) Offenders who are in a private prison that contracts with the department.
(c) (b) Offenders who are on community supervision or parole.
B. The report shall be submitted to the governor, the president of the senate and the speaker of the house of representatives and a copy of this report shall be provided to the secretary of state.
Sec. 3. Section 41-1608, Arizona Revised Statutes, is amended to read:
41-1608. Inmate medical services; rate structure
If a prisoner in a secure care facility requires health care services that the department, or the facility or a private prison provider contracted by the department cannot provide, the department shall pay approved claims from a facility or provider that provides these services as follows:
1. For inpatient and outpatient hospital services, the department shall reimburse at a level that does not exceed the reimbursement methodology established pursuant to section 36‑2903.01, subsection G.
2. For health and medical services, the department shall reimburse at a level that does not exceed the capped fee‑for‑service schedule that is adopted by the Arizona health care cost containment system administration pursuant to title 36, chapter 29, article 1 and that is in effect at the time the services are delivered.
Sec. 4. Section 41-1609, Arizona Revised Statutes, is amended to read:
41-1609. Agreements with federal agencies and institutions; contract review; emergency contracts
A. The department may enter into agreements with the federal government, other states or agencies of the federal government or other states for such compensation upon on which they agree to accept or deliver adult offenders or to administer correctional programs. Notwithstanding the provisions of section 35‑193, any funds monies received by the department under the agreements shall be kept in a separate revolving fund for current usage and shall not revert to the state general fund if unexpended at the close of a fiscal year.
B. The department may contract with any private or public institution that is located inside or outside this state for facilities or the operation of facilities that are dedicated to the confinement of persons who are committed to the department. Notwithstanding chapter 4, article 7 of this title and article 4 of this chapter, the contract may include a purchase option and if the contract has a per diem provision the contract may include a provision that allows a portion of the per diem to be applied to reduce the purchase price.
C. The department shall submit all contracts entered into pursuant to subsection B of this section to the attorney general to determine if the contract is within the authority granted under the laws of this state and in proper form. All contracts involving the detention or incarceration of adult offenders shall conform to the requirements of section 41‑1609.01.
D. Notwithstanding subsection C of this section, the department may enter into emergency contracts pursuant to section 41‑2537 with private or public institutions for facilities or the operation of facilities that are dedicated to the confinement of persons who are committed to the department.
E. The director may declare an emergency for acts of God, natural catastrophes, prison riots and overcrowding. In an emergency, the director shall:
1. Confine persons who are committed to the department in either of the following:
(a) an existing public institution.
(b) A private institution that is described in subsection B of this section.
2. Up to twenty‑four hours before declaring the emergency, notify the governor and the attorney general of the emergency and the need to relocate persons who are committed to the department to another existing public or private facility established pursuant to sections section 41‑1609.01 and 41‑1609.02.
3. Within thirty days after declaring the emergency, determine the length of the emergency confinement. If the director determines that the emergency confinement will exceed six months in duration, the emergency contract shall comply with sections section 41‑1609.01 and 41‑1609.02.
F. Notwithstanding subsection E, paragraph 2 of this section, if the director declares that an emergency exists due to the overcrowding of a public or private correctional facility, the director shall discuss with the governor, the attorney general and the majority and minority leadership in the senate and the house of representatives relocating the inmates from the overcrowded facility to another facility before relocating the inmates.
G. An emergency contract shall not exceed one year in duration.
Sec. 5. Section 41-1609.01, Arizona Revised Statutes, is amended to read:
41-1609.01. Adult incarceration contracts with a public institution; criteria
A. On publication, any request for proposals shall be provided to the joint legislative budget committee for its review.
B. To be considered for an award of a contract, the public institution proposer must demonstrate that it has:
1. The qualifications, operations and management experience and experienced personnel necessary to carry out the terms of the contract.
2. The ability to comply with applicable correctional standards and any specific court order, if required.
3. A demonstrated history of successful operation and management of other secure facilities.
C. The public institution proposer of a contract for correctional services must agree that this state may cancel the contract at any time after the first year of operation, without penalty to this state, on giving ninety days' written notice.
D. A contract may provide for annual contract price or cost adjustments, except that any adjustments may be made only once each year effective on the anniversary of the effective date of the contract. If any adjustment is made pursuant to the terms of the contract, it shall be applied to the total payments made to the contractor for the previous contract year and shall not exceed the per cent percent of change in the average consumer price index as published by the United States department of labor, bureau of labor statistics between that figure for the latest calendar year and the next previous calendar year.
E. Any price or cost adjustments to a contract different than those authorized in subsection D of this section may be made only if the legislature specifically authorizes the adjustments and appropriates monies for that purpose, if required.
F. An award of a contract shall not be made unless an acceptable proposal is received pursuant to any request for proposals. For the purposes of this subsection, "acceptable proposal" means a proposal that substantially meets all of the requirements or conditions set forth in this section and that meets all of the requirements in the request for proposals.
G. A proposal shall not be accepted unless the proposal offers cost savings to this state.
H. A proposal shall not be accepted unless the proposal offers a level and quality of services that are at least functionally equal to those that would be provided by this state.
I. Notwithstanding section 41‑2546, a contract to provide correctional services as described in this section may be for an initial period of not more than ten years.
J. The initial contract may include an option to renew for two subsequent renewal periods of not more than five years each.
K. A contract for correctional services described in this section shall not be entered into unless the following requirements are met:
1. The public institution contractor provides audited financial statements for the previous five years, or for each of the years the contractor has been in operation, if fewer than five years, and provides other financial information as requested.
2. The public institution contractor provides an adequate plan of insurance, specifically including coverage or insurance for civil rights claims and liabilities as approved by the risk management division of the department of administration.
3. The public institution contractor agrees to be liable for the costs of any emergency, public safety or security services provided to the public institution contractor by the state or any political subdivision of the state and to reimburse the state or any political subdivision of the state for the cost of any such services.
L. The sovereign immunity of this state does not apply to the public institution contractor. Neither the public institution contractor nor the insurer of the public institution contractor may plead the defense of sovereign immunity in any action arising out of the performance of the contract.
M. A contract for correctional services shall not authorize, allow or imply a delegation of authority or responsibility to a public institution prison contractor for any of the following:
1. Developing and implementing procedures for calculating inmate release dates.
2. Developing and implementing procedures for calculating and awarding sentence credits.
3. Approving the type of work inmates may perform and the wages or sentence credits that may be given to inmates engaging in the work.
4. Granting, denying or revoking sentence credits, placing an inmate under less restrictive custody or more restrictive custody or taking any disciplinary actions.
Sec. 6. Repeal
Section 41-1609.02, 41-1609.03 and 41-1609.04, Arizona Revised Statutes, are repealed.
Sec. 7. Termination of private prison contracts; relocation of prisoners to state facilities
The director of the state department of corrections shall:
1. Provide written notice to each private prison contractor that has a contract to house prisoners pursuant to section 41‑1609.01, Arizona Revised Statutes, as amended by this act, that this state is exercising its right to terminate the contract with ninety days' written notice.
2. Terminate all contracts with private prison facilities at the earliest possible date after the effective date of this act.
3. Relocate all prisoners who are housed in a private prison facility to a state prison facility.
Sec. 8. State prison facilities; capacity; report
On or before January 1, 2019, the Arizona criminal justice commission shall research and provide a report to the governor and the legislature, pursuant to section 41‑2405, subsection A, paragraph 9, Arizona Revised Statutes, on the prisoner capacity of state prison facilities and make recommendations for state prison facilities expansion, if necessary.
