Purpose

Prohibits the construction of a private prison without approval by the Joint Committee on Capital Review (JCCR) and review by the Director of the Arizona Department of Corrections (ADC).

Background

A private prison is defined as a privately owned prison that does not contract exclusively with ADC and is primarily directed at housing adult prisoners who are sentenced to serve a term of detention or incarceration by a court from a state other than Arizona. In 1970 Arizona joined the Western Interstate Corrections Compact. The agreement provides for detention of prisoners from one compact state in the prisons of another compact state. Furthermore, the private prison escapee fund was established in 1997 to cover the costs of escapees from private prisons. The fund is administered by the Department of Administration (DOA) and monies are used to reimburse law enforcement agencies for the costs incurred by them in capturing prisoners.

Currently, a private prison must show proof of financial responsibility before construction can begin by either depositing $10 million in the private prison escapee fund, filing a $10 million insurance policy, filing a $10 million surety bond or filing a certified financial statement showing a net worth of $15 million with DOA. These monies are used by the state if the state is held liable for civil damages resulting from the escape of a prisoner from the private prison. When financial proof is established, construction of the prison can begin. This legislation further requires the approval of the Director of ADC and the review of JCCR before private prison construction can commence.

S.B. 1478 has no discernable fiscal impact to the state general fund.

Provisions

1. Prohibits the construction of a private prison unless the proposal is approved by JCCR and reviewed by the Director of ADC.

2. Provides for a general effective date.

House Action

JUD 2/27/01 DPA/SE 10-0-0-0-0

3^rd Read 3/12/01 51-1-8-0

JFK/ac