1 214987-1 : DRAFT : 09/06/2021

8 SYNOPSIS: Under existing law, the Alabama Corrections

9 Institution Finance Authority is authorized to

10 issue bonds for prison construction purposes.

11 This bill would allow the authority to issue

12 additional bonds in an amount not to exceed $785

13 million, as necessary, to implement a prison

14 modernization plan in a phased approach that would

15 replace existing bed space in Department of

16 Corrections facilities through the construction of

17 a new specialized men's prison facility on

18 state-owned land in Elmore County that would

19 provide enhanced medical, mental, and other health

20 care, substance abuse and addiction treatment, and

21 educational and other programming services to

22 inmates; the construction of a new prison facility

23 for male inmates on state-owned land in Escambia

24 County; the construction of a new women's prison

25 facility on state-owned land in Elmore County; and

26 the renovation and improvement of existing

27 state-owned prison facilities in Jefferson County,

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1 Limestone County, and an additional existing

2 facility to be selected by the authority to be

3 located in Barbour or Bullock Counties.

5 A BILL

6 TO BE ENTITLED

7 AN ACT

9 Relating to the finance and construction and

10 renovation of prisons; to provide legislative findings and

11 intent; to amend Sections 14-2-1, 14-2-6, 14-2-12, 14-2-13.1,

12 14-2-14, 14-2-16, 14-2-19, 14-2-21, 14-2-28, and 14-2-34, Code

13 of Alabama 1975, to allow the Alabama Corrections Institution

14 Finance Authority to issue bonds in an amount not to exceed

15 $785 million for the purpose of implementing a prison

16 modernization plan in a phased approach that would replace

17 existing bed space in Department of Corrections facilities

18 through the construction of a new specialized men's prison

19 facility on state-owned land in Elmore County providing

20 specialized services to inmates; the construction of a new

21 prison facility for male inmates on state-owned land in

22 Escambia County; the construction of a new women's prison

23 facility on state-owned land in Elmore County; the renovation

24 and improvement of existing state-owned prison facilities in

25 certain counties and an additional existing facility to be

26 selected by the authority; to define certain terms; to revise

27 the membership of the authority; to require reporting to the

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1 Joint Legislative Prison Oversight Committee; to further

2 provide for actions to be taken upon payment of all bonds

3 issued by the authority; and to create the Alabama

4 Correctional Capital Improvement and Facilities Maintenance

5 Fund.

6 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:

7 Section 1. The Legislature finds and declares the

8 following:

9 (1) Many of the existing prison facilities in this

10 state are well beyond their normal design service life, most

11 existing prison facility infrastructure lacks sustained

12 maintenance, and lifecycle replacement has not been routinely

13 performed on all facilities. The average age of operational

14 prison facilities used by the Department of Corrections is 44

15 years. Additionally, the physical plant conditions have

16 continued to deteriorate in many facilities, and the design

17 and layout of the existing facilities is antiquated and not

18 optimally suited for the delivery of necessary services to

19 inmates or to fully realize the benefits of modern technology.

20 In many facilities, renovation would be uneconomical or

21 cost-prohibitive.

22 (2) It is the intent of this act to implement a plan

23 to replace existing prison facility capacity with new or

24 renovated capacity in the prison facilities using a phased

25 approach.

26 (3) It is necessary to prioritize the construction

27 of a men's prison facility to provide enhanced health care

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1 services, including outpatient and inpatient medical and

2 mental health services, substance abuse and addiction

3 treatment, and educational services and programs, and to

4 increase delivery of these services efficiently.

5 (4) It is also necessary to prioritize the

6 construction of a 4,000-bed men's prison facility to provide

7 transition space for those inmates currently housed in

8 facilities that are in critical need of renovations and

9 improvements, and to construct a new women's prison facility.

10 (5) A phased approach in constructing new prison

11 facilities and renovating and improving some or portions of

12 existing prison facilities, coupled with the use of any

13 funding sources, available now or in the future, and

14 appropriated for these specific purposes, is a fiscally

15 responsible and practical approach to addressing the critical

16 needs of the current prison infrastructure.

17 (6) It is the intent of the Legislature to fully

18 fund Phase I of construction with a combination of issuing

19 bonds authorized by this act and direct appropriation of other

20 available funds. It is further the intent of the Legislature,

21 that future phases of the plan set forth in this act shall be

22 funded on a pay as built basis or as otherwise authorized by

23 this act.

24 Section 2. Sections 14-2-1, 14-2-6, 14-2-12,

25 14-2-13.1, 14-2-14, 14-2-16, 14-2-19, 14-2-21, 14-2-28, and

26 14-2-34, Code of Alabama 1975, are amended to read as follows:

27 "§14-2-1.

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1 "For the purposes of this chapter, the following

2 terms shall have the meanings respectively ascribed to them by

3 this section:

4 "(1) AUTHORITY. The public corporation organized

5 pursuant to the provisions of this chapter.

6 "(2) COMMISSION. The Building Commission created by

7 Section 41-9-140 and its successors as the state agency for

8 awarding construction contracts and supervising construction.

9 "(3) DEPARTMENT. The Alabama Department of

10 Corrections created by Section 14-1-1.1 and its successors as

11 the state agency responsible for supervising and controlling

12 the operation of the correctional institutions of the state.

13 "(4) ESCAMBIA MEN'S PRISON FACILITY. A prison

14 facility, including all real property, buildings, and

15 improvements, designed to house at least 4,000 male inmates

16 and with intake capability, to be located on land owned by the

17 state or the authority as of December 1, 2020, in Escambia

18 County, as provided in Section 14-2-12(c)(2)a.

19 "(4)(5) STATE. The State of Alabama.

20 "(5)(6) BONDS. The bonds issued under the provisions

21 of this chapter.

22 "(6)(7) FACILITIES. Such term includes any one or

23 more of the following:

24 "a. Prisons;

25 "b. Buildings and enclosures for housing,

26 containing, or supervising prisoners; and

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1 "c. Any facilities necessary or useful in connection

2 with prisons, buildings, or enclosures, including, without

3 limiting the generality of the foregoing, hospitals, offices,

4 correctional officers' quarters and residences, warehouses,

5 garages, storage facilities, abattoirs, cold storage plants,

6 canning plants, laundries, and manufacturing plants for the

7 employment of prison labor, educational and other programming

8 facilities, medical, mental and other health care facilities,

9 and substance abuse and addiction treatment facilities.

10 "(7)(8) KILBY PROPERTY. Such term includes all of

11 the real property commonly referred to as Kilby prison

12 property, embracing not only the real property owned by the

13 state on which Kilby prison is located, but also all real

14 property owned by the state used in connection with Kilby

15 prison and adjacent thereto, all located in sections 2, 3, 10,

16 11, 21, 22, 26, 27, 28, 29, 30, 33, 34, and 35 in township 17,

17 range 18 in Montgomery County, Alabama, together with all

18 personal property owned by the state and used in connection

19 with Kilby prison and the real property adjacent thereto.

20 "(8)(9) PERRY COUNTY FACILITY. The Perry County

21 Correctional Center, including all real property, buildings,

22 and improvements located at the facility in Perry County.

23 "(10) SPECIALIZED MEN'S PRISON FACILITY. A prison

24 facility, including all real property, buildings, and

25 improvements, designed to house at least 4,000 male inmates,

26 with intake capability, and with designated space for enhanced

27 medical, mental, and other health care, substance abuse and

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1 addiction treatment, and educational and other programming

2 services to inmates, to be located on land owned by the state

3 or the authority as of December 1, 2020, in Elmore County, as

4 provided in Section 14-2-12(c)(2)a.

5 "(11) WOMEN'S PRISON FACILITY. A prison facility

6 designed to house at least 1,000 female inmates to be located

7 on land owned by the state or the authority in Elmore County,

8 as provided in Section 14-2-12(c)(2)a.

9 "§14-2-6.

10 "(a) The applicants named in the application and

11 their respective successors in office shall constitute the

12 members of the authority. The membership of the authority

13 shall be as follows: the Governor shall be the president of

14 the authority, the Commissioner of Corrections shall be the

15 vice-president vice president of the authority, and the

16 Director of Finance shall be the secretary of the authority.

17 In addition to these three members, the chair of the House

18 Ways and Means General Fund Committee, the chair of the Senate

19 Finance and Taxation General Fund Committee, a member jointly

20 appointed by the House Minority Leader and the Senate Minority

21 Leader, and the Director of the Bureau of Pardons and Paroles

22 shall be members of the authority. The governing documents of

23 the authority shall be amended to reflect this membership.

24 "(b) The State Treasurer shall be the treasurer and

25 custodian of the funds of the authority, but shall not be a

26 member of the authority. The members of the authority shall

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1 constitute all the members of the board of directors of the

2 authority, which shall be the governing body of the authority.

3 "(c) A majority of the members of the said board of

4 directors authority shall constitute a quorum for the

5 transaction of business.

6 "(d) Should any person holding any state office

7 named in this section cease to hold such office by reason of

8 death, resignation, expiration of his or her term of office or

9 for any other reason, then his or her successor in office

10 shall take his or her place as a member, or officer or

11 director, as the case may be, of the authority.

12 "(e) No member, or officer or director of the

13 authority shall draw any salary in addition to that now

14 authorized by law for any service he or she may render or for

15 any duty he or she may perform in connection with the

16 authority.

17 "(f) No member, officer, director or employee of the

18 authority shall be personally liable for any debt, obligation,

19 or liability of the authority.

20 "(g) The authority may delegate any of its

21 administrative or reporting duties and obligations under this

22 chapter to the Department of Corrections or any other state

23 agency, department, or other state entity.

24 "§14-2-12.

25 "(a) For the purpose of providing funds for the

26 acquisition of sites, for the construction, reconstruction,

27 alteration and improvement of facilities, for the procurement

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1 and installation of equipment therefor, and for payment of

2 obligations incurred and the principal of and interest on any

3 temporary loans made for any of the said purposes, the

4 authority is hereby authorized, from time to time, to sell and

5 issue, in addition to all bonds heretofore authorized to be

6 issued by the authority, its bonds in such aggregate principal

7 amounts as may be determined by the corporation to be

8 necessary for the said purposes, but not to exceed

9 $25,000,000, plus an additional seven million five hundred

10 thousand dollars ($7,500,000) pursuant to Act 97-950, in

11 aggregate principal amount.

12 "(b) In addition to the authorization provided in

13 subsection (a), the authority is hereby authorized, from time

14 to time, to sell and issue its bonds in amounts determined by

15 the authority to be necessary for the acquisition,

16 construction, reconstruction, alteration, and improvement of

17 facilities. Additional bonds may be issued to provide for

18 additional bedspace by improving properties currently owned by

19 the Department of Corrections or the authority. The total

20 additional bonds authorized by this subsection shall not

21 exceed $60 million.

22 "(c)(1) Subject to subdivision (2), in addition to

23 any other authorization provided in this chapter, the

24 authority is hereby authorized, from time to time, to sell and

25 issue bonds in multiple series and in amounts determined by

26 the authority to be necessary to replace existing bed space in

27 Department of Corrections facilities through the

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1 implementation of the phased plan set forth in the act

2 amending this section. The total additional bonds authorized

3 by the act amending this section may not exceed $785 million.

4 "(2) The additional bonds authorized under

5 subdivision (1) shall be issued by the authority as necessary

6 for the projects specified in each phase:

7 "a.1. PHASE 1: Immediately upon the effective date

8 of the act adding this amendatory language, the authority

9 shall be authorized to issue bonds as necessary, and subject

10 to the limitation in this subsection, to fund the following

11 Phase 1 projects:

12 "(i) The construction of the specialized men's

13 prison facility.

14 "(ii) The construction of the Escambia men's prison

15 facility.

16 "2. Within one year from the completion of the

17 specialized men's prison facility and the Escambia men's

18 prison facility, the Hamilton Aged and Infirmed Center and the

19 Staton, Elmore, and Kilby facilities shall all be closed.

20 "b. PHASE 2: Upon substantial completion of at least

21 60 percent of the construction of Phase 1 projects, in the

22 aggregate, or anytime thereafter, as certified by the

23 Commissioner of Corrections, and upon certification by the

24 Director of Finance, the chair of the House Ways and Means

25 General Fund Committee, and the chair of the Senate Finance

26 and Taxation General Fund Committee that the General Fund can

27 support additional lease payments from the department to the

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1 authority or that the funding otherwise exists to complete any

2 of the Phase II projects and it is in the best interest of the

3 state to do so, the authority shall be authorized to issue

4 bonds as necessary, and subject to the limitation in this

5 subsection, to fund any of the following Phase 2 projects:

6 "1. The construction of a women's prison facility.

7 Within one year of completion of this women's facility, the

8 Julia Tutwiler Prison shall be closed.

9 "2. The renovation and improvement, or, if

10 necessary, the demolition and reconstruction, of existing

11 state-owned prison facilities in Jefferson and Limestone

12 Counties.

13 "3. The renovation and improvement, or, if

14 necessary, the demolition and reconstruction, of an existing

15 state-owned men's prison facility to be selected by the

16 authority and to be located in Barbour or Bullock Counties.

17 "c. PHASE 3: Prior to substantial completion of 75

18 percent of the renovation and improvement of Phase 2 projects,

19 in the aggregate, as certified by the Commissioner of

20 Corrections, the Department of Corrections, in consultation

21 with the Joint Legislative Prison Oversight Committee, shall

22 perform an evaluation of men's prison facilities based on a

23 current facilities assessment and inmate population trends to

24 determine if additional facility beds need to be replaced. A

25 copy of the evaluation shall be provided to the Legislature.

26 "(3) If bond proceeds exceed the amount authorized

27 in subdivision (1) due to receipt of original issue premium in

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1 connection with the sale of bonds or due to any other reason,

2 the bond proceeds in excess of those amounts shall be

3 allocated by the authority for the expense of issuance,

4 including capitalized interest, or as determined necessary for

5 the purposes provided in subdivision (1).

6 "(4) Within 30 days of the completion of any bond

7 sale pursuant to this subsection, the authority shall provide

8 a report, in concise, simple language to the Legislature which

9 reflects the date of the issuance of the bonds pursuant to

10 this subsection, total amount of the bonds, maturity date,

11 schedule of payments, including interest and principal, amount

12 of attorney fees, architect fees and bond attorney fees,

13 underwriting fees, and all other costs incurred in the

14 issuance of and sale of the bonds herein authorized, and to

15 what person, firm, corporation, company, or other entity to

16 which any such fees or money is to be or has been paid.

17 "(c)(d) Any monetary transactions by the authority

18 completed pursuant to Act 2010-729 and the act adding this

19 amendatory language shall be fully disclosed to the public.

20 "(d)(e) Any bonds issued pursuant to this section

21 shall be sold by competitive bid if practical and economically

22 feasible as determined by the authority pursuant to the terms

23 of Section 14-2-16.

24 "(e)(f)(1) The authority is strongly encouraged to

25 utilize businesses and companies in all aspects of the bond

26 and construction portions of this chapter that reflect the

27 racial and ethnic diversity of the state.

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1 "(2) It is the intent of the Legislature that the

2 authority encourage participation by minority businesses in

3 the construction of prison facilities as provided by the act

4 adding this amendatory language. Accordingly, the authority

5 shall adopt a plan that achieves to the greatest extent

6 possible a level of participation by minority businesses. The

7 authority may administer training programs and other

8 educational activities to enable eligible minority businesses

9 to compete for participation on an equal basis. The authority

10 shall monitor the results of minority business participation

11 and shall report the results of minority business

12 participation to the Governor and the Legislature at least on

13 a quarterly basis.

14 "§14-2-13.1.

15 "It is hereby further provided that no refunding

16 bonds as provided for by Section 14-2-13 shall be issued

17 unless the present value of all debt service on the refunding

18 bonds (computed with a discount rate equal to the true

19 interest rate bond yield of the refunding bonds and taking

20 into account all underwriting discount and other issuance

21 expenses) shall not be greater than 95% 98 percent of the

22 present value of all debt service on the bonds to be refunded

23 (computed using the same discount rate and taking into account

24 the underwriting discount and other issuance expenses

25 originally applicable to such bonds) determined as if such

26 bonds to be refunded were paid and retired in accordance with

27 the schedule of maturities (considering mandatory redemption

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1 as a scheduled maturity) provided at the time of their

2 issuance. Provided further that the average maturity of the

3 refunding bonds, as measured from the date of issuance of such

4 refunding bonds, shall not exceed by more than three years the

5 average maturity of the bonds to be refunded, as also measured

6 from such date of issuance, with the average maturity of any

7 principal amount of bonds to be determined by multiplying the

8 principal of each maturity by the number of years (including

9 any fractional part of a year) intervening between such date

10 of issuance and each such maturity, taking the sum of all such

11 products, and then dividing such sum by the aggregate

12 principal amount of bonds for which the average maturity is to

13 be determined.

14 "§14-2-14.

15 "Any bonds of the authority may be executed and

16 delivered by it at any time and from time to time, shall be in

17 such form and denominations and of such tenor and maturities,

18 shall bear such rate or rates of interest payable and

19 evidenced in such manner, may contain provisions for

20 redemption prior to maturity and may contain other provisions

21 not inconsistent with this section, all as may be provided by

22 the resolution of the board of directors authority whereunder

23 such bonds are authorized to be issued; provided, that no bond

24 of the authority shall have a specified maturity date later

25 than 20 30 years after its date. In the event that the

26 authority shall make more than one pledge of the same

27 revenues, such pledges shall, unless otherwise provided in the

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1 resolution or resolutions authorizing the earlier issued

2 bonds, take precedence in the order of the adoption of the

3 resolutions in which the pledges are made; provided, that each

4 pledge for the benefit of refunding bonds shall have the same

5 priority as the pledge for the benefit of the bonds refunded

6 thereby.

7 "§14-2-16.

8 "Bonds of the authority may be sold at such price or

9 prices and at such time or times as the board of directors of

10 the authority may consider advantageous, either at public

11 sale, or private sale, or via negotiation. Bonds of the

12 authority sold by competitive bid must be sold, whether on

13 sealed bids or at public auction, to the bidder whose bid

14 reflects the lowest effective borrowing true interest cost to

15 the authority for the bonds being sold; provided, that if no

16 bid acceptable to the authority is received, it may reject all

17 bids. Notice of each such sale by competitive bids shall be

18 given by publication in either a financial journal or a

19 financial newspaper published in the City of New York, New

20 York, and also by publication in a newspaper published in the

21 State of Alabama, each of which notices must be published at

22 least one time not less than 10 days before the date for the

23 sale. The board of directors authority may fix the terms and

24 conditions under which such sale may be held; provided, that

25 such terms and conditions shall not conflict with any of the

26 requirements of this chapter. The authority may pay out of the

27 proceeds of the sale of its bonds all expenses, including

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1 capitalized interest during a period not to exceed one year

2 three years from the date of issuance of such bonds,

3 publication and printing charges, attorneys' fees and other

4 expenses which said the authority board of directors may deem

5 necessary and advantageous in connection with the

6 authorization, advertisement, sale, execution, and issuance of

7 such bonds. Neither Except as otherwise provided in paragraphs

8 (c)(2)b. and c. of Section 14-2-12, neither a public hearing

9 nor consent of the State Department of Finance or any other

10 department or agency of the state shall be a prerequisite to

11 the issuance or sale of bonds by the authority.

12 "§14-2-19.

13 "(a) All proceeds derived from the sale of any

14 bonds, except refunding bonds, sold by the authority,

15 remaining after payment of the expenses of issuance thereof,

16 shall be turned over to the State Treasurer, shall be carried

17 in a special account to the credit of the authority, and shall

18 be subject to be drawn on by the authority solely for the

19 purposes of:

20 "(1) Acquiring land for and constructing,

21 reconstructing, and equipping thereon one or more facilities;

22 "(2) Constructing additional improvements on

23 property currently owned by the Department of Corrections or

24 the authority in order to provide for additional or

25 replacement bedspace;

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1 "(3) Paying all reasonable and necessary expenses

2 incidental thereto, including filing, recording, surveying,

3 legal and engineering fees, and expenses;

4 "(4) Paying the interest which will accrue on the

5 said bonds during the period required for the construction and

6 equipment equipping of the said facilities and for a period

7 not exceeding six months after the completion thereof; and

8 "(5) Paying the principal of and interest on all

9 then outstanding notes theretofore issued by the authority

10 pursuant to the provisions of Section 14-2-10.;

11 "(6) Paying for cost of constructing the specialized

12 men's prison facility and the Escambia men's prison facility;

13 and

14 "(7) Paying for the cost of renovation and

15 improvement of existing state-owned prison facilities in

16 Jefferson and Limestone Counties and an additional men's

17 prison facility selected by the authority and to be located in

18 Barbour or Bullock Counties, and the construction of a women's

19 prison facility.

20 "The balance of the said proceeds thereafter

21 remaining, unless required for the construction of other

22 facilities by the authority as shall be determined by

23 resolution of its board of directors within six months after

24 completion of the facilities for which the bonds were issued,

25 shall be set aside as additional security for the bonds or

26 shall be used to pay, purchase, or redeem bonds as may be

27 provided in the proceedings authorizing their issuance. The

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1 reasonable and necessary expenses incident to the construction

2 of any facility shall, if deemed advisable by the authority,

3 include all or any part of the expense of providing temporary

4 facilities, during the construction of a new facility, for any

5 penal or correctional institution facility which is demolished

6 or rendered unserviceable as such.

7 "(b) All proceeds from the sale of refunding bonds

8 issued by the authority that remain after paying the expenses

9 of their issuance may be used only for the purpose of

10 refunding the principal of and any unpaid and accrued interest

11 on the outstanding bonds of the authority for the refunding of

12 which the refunding bonds are authorized to be issued,

13 together with any premium that may be necessary to be paid in

14 order to redeem or retire such outstanding bonds.

15 "§14-2-21.

16 "(a) The principal of, premium, if any, and interest

17 on the bonds of the authority shall be secured by any or all

18 of the following, as the authority may determine:

19 "(1) The rent and revenue for the use of one or more

20 facilities of the authority;

21 "(2) The net rent or sale proceeds from the Kilby

22 property;

23 "(3) Any bond proceeds remaining unexpended upon

24 completion of all facilities to be constructed with such bond

25 proceeds and the payment of the cost thereof;

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1 "(4) Any insurance proceeds which the authority may

2 receive by reason of its ownership of any of the facilities;

3 and

4 "(5) Any mortgage upon or security interest in one

5 or more facilities of the authority, granted in connection

6 with the issuance of such bonds.

7 "(b) The authority shall have authority to transfer

8 and assign any lease agreement of any of the facilities and

9 any lease or mortgage of the Kilby property as security for

10 the payment of such principal, premium, if any, and interest.

11 The bonds may be issued under, and secured by, a resolution

12 which may, but need not, provide for an indenture of trust

13 covering one or more facilities of the authority. Such

14 resolution or such indenture of trust may contain any

15 provision or agreement customarily contained in instruments

16 securing evidences of indebtedness, including, without

17 limiting the generality of the foregoing, provisions

18 respecting the collection and application of any lease

19 agreement revenues, or other receipts pledged to the payment

20 of bonds, the terms to be incorporated in lease agreements

21 respecting the facilities, the maintenance and insurance

22 thereof, the creation and maintenance of reserve and other

23 special funds from such receipts, and the rights and remedies

24 available in the event of default to the holders of the bonds

25 or to the trustee for the holders of the bonds or under any

26 indenture of trust, all as the authority may deem advisable

27 and as shall not be in conflict with the provisions of this

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1 chapter; provided, however, that in making such agreements or

2 provisions the authority shall not have the power to obligate

3 itself except with respect to its facilities, the Kilby

4 property, and the application of the lease agreement revenues

5 and other receipts which it is authorized in this chapter to

6 pledge.

7 "(c) The Alabama Correctional Capital Improvement

8 and Facilities Maintenance Fund is created within the State

9 Treasury, to be administered by the Department of Corrections.

10 The Legislature shall make appropriations to this fund to be

11 used exclusively for capital improvements or maintenance of

12 the prison facilities as enumerated in Section 14-2-12(c).

13 "§14-2-28.

14 "All facilities constructed by the authority shall

15 be constructed according to plans and specifications of

16 architects or engineers, or both, selected by the department.

17 Such plans and specifications shall be approved by the

18 department and by the commission. All work in the construction

19 of facilities, or any part thereof, which is determined by the

20 commission to be suitable and proper for construction by

21 prison labor under force account shall be performed by such

22 prison labor under such supervision and directions as shall be

23 ordered by the department. All construction of facilities or

24 any part thereof which the commission shall determine not to

25 be suitable and proper for construction by prison labor shall

26 be done under the supervision and direction of the commission

27 following award for each part of the work to the lowest

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1 responsible bidder after advertising for, receipt and public

2 opening of sealed bids. Each such invitation for bids and the

3 bidding documents applicable thereto shall be so arranged that

4 any alternates shall constitute cumulative deductions from the

5 base bid rather than additions thereto. In determining the

6 lowest bidder if funds are insufficient to construct the

7 facility on the lowest base bid, then the commission may

8 proceed to consider the bids upon the basis of the base bids

9 of all bidders minus the respective reductions stated for the

10 first alternate. If the lowest bid so determined is not then

11 within the funds available, the commission shall proceed to

12 consider the base bid minus the first and second alternates

13 together to determine the lowest bid and in like manner

14 throughout all alternates, if need be, so that in no event

15 shall there be any discretion as to which alternate or

16 alternates will be used in determining the lowest responsible

17 bidder. If no bid deemed acceptable by the commission and the

18 authority is received, all bids may be rejected, in which

19 event bids may again from time to time be invited and acted on

20 as provided in this section.

21 "(a)(1)a. Notwithstanding any other provision of

22 law, the contract for the design and construction of the

23 specialized men's prison facility and the Escambia men's

24 prison facility authorized in Section 14-2-12(c)(2)a. may be

25 awarded to either of the following:

26 "1. Any person that was part of a team qualified by

27 the department for any proposed facility pursuant to the

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1 Request for Qualifications issued by the Department of

2 Corrections June 27, 2019, provided that the previously

3 qualified person may petition the department to add or

4 substitute team members as needed.

5 "2. In the event the authority determines it is not

6 in the best interest of this state to enter into a contract

7 for the design and construction of one or both of the

8 specialized men's prison facility and the Escambia men's

9 prison facility pursuant to subparagraph (a)(1)a.1., the

10 authority may enter into contracts with any other public and

11 private parties for the design and construction of the

12 facilities not contracted for pursuant to subparagraph

13 (a)(1)a.1., including a design-build contract, in accordance

14 with the following:

15 "(i)The authority shall develop procedures to

16 implement this section, including, but not limited to,

17 proposal content, selection criteria, prequalification,

18 applicant interview, proposal evaluation, proposal

19 negotiation, selection, and award, which will be outlined in

20 each authority request for proposal.

21 "(ii) Notwithstanding any provision of law to the

22 contrary, proposals under this section shall be awarded by the

23 authority based on qualifications of participants and best

24 value as evaluated by procedures of the authority and taking

25 into consideration the best interest of this state.

26 "(iii) Proposals shall use the standard

27 specifications of the department or other specifications the

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1 authority and the department determine necessary for the

2 facility.

3 "(iv) The authority may award a contract through any

4 other procurement authority, proposals, or other means of

5 procurement otherwise available for public works projects in

6 this state.

7 "b. Both the specialized men's prison facility and

8 the Escambia men's prison facility shall not be awarded to the

9 same person unless it is determined by the authority that to

10 award the contracts to the same team would be in the best

11 interest of this state.

12 "c. Unless the authority finds it is not in the best

13 interest of this state, the contract for the design and

14 construction of the specialized men's prison facility shall be

15 executed before execution of the contract for the design and

16 construction of the Escambia men's prison facility.

17 "d. Any contract for the design and construction of

18 the specialized men's prison facility or for the design and

19 construction of the Escambia men's prison facility shall

20 establish a guaranteed maximum price for each project.

21 "e. As a condition of entering into a contract for

22 the design and construction of either the specialized men's

23 prison facility or the Escambia men's prison facility, any

24 person entering into the contract shall agree to full

25 transparency and shall share all pricing information with the

26 authority. The authority, at its sole discretion, shall have

27 the right to require verification of competitive pricing for

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1 any portion of the proposed scope of the design and

2 construction agreements.

3 "(2)a. Notwithstanding any other provision of law,

4 and except as provided in paragraph b., all other construction

5 contemplated by the act amending this section shall be subject

6 to the bid requirements for public works in Title 39, Code of

7 Alabama 1975.

8 "b. When two or more bids are received for contracts

9 referenced in paragraph a., and all bids exceed available

10 funding for the contract as provided in Section 14-2-12, Code

11 of Alabama 1975, the authority may negotiate for the work with

12 the lowest responsible and responsive bidder provided that the

13 authority certifies a shortage of funding, that time is of the

14 essence, and that the negotiated changes are in the public

15 interest and do not materially alter the scope and nature of

16 the project.

17 "(c) All such contracts shall be lump sum contracts.

18 The entire work on a prison facility may be divided into one

19 or more contracts. All contracts for the entire work on a

20 facility shall need not be awarded at the same time, but

21 notice to proceed may be withheld until so that prior work

22 under another contract has progressed can progress to a point

23 where the joint or following work can best be coordinated for

24 the earliest completion of the entire project in a sound and

25 workmanlike manner. Each contract shall be executed by the

26 authority upon the determination of the commission as to the

27 lowest bidder. Payments made by the authority under the

Page 24
1 construction contracts shall be upon the contractor's written

2 sworn request only if endorsed as approved by the commission

3 or in any lesser amount the commission shall endorse as having

4 been then earned on said the contract. After the contracts for

5 a facility have been awarded, such the construction cost

6 estimate shall be revised and all extras on the contracts

7 shall be awarded within the funds available. The authority

8 shall pay to the commission as a part of the cost of

9 constructing the facility such sums for the services of its

10 employees as may be mutually agreed between the department and

11 the commission.

12 "§14-2-34.

13 "When all bonds and securities issued by the

14 authority and all obligations assumed by it under the

15 provisions of this chapter shall have been paid in full, the

16 then president of the authority shall thereupon execute and

17 deliver in the name of, and in behalf of, the authority an

18 appropriate deed or deeds, to which the seal of the authority

19 shall be affixed and attested by the secretary of the

20 authority, conveying all facilities and other assets then

21 owned by the authority to the state, except that no such

22 conveyance shall be required if the president of the authority

23 determines that the issuance of additional bonds to finance

24 improvements to existing facilities is contemplated. The then

25 officers and directors of the authority may, in their

26 discretion, at such time file with the Secretary of State a

27 written statement, subscribed and sworn to by each of them,

Page 25
1 reciting the payment in full of all bonds theretofore issued

2 by the authority and the execution and delivery of such deed

3 or deeds, which statement shall be filed by the Secretary of

4 State and recorded with the certificate of incorporation of

5 the authority, and thereupon the authority shall stand

6 dissolved."

7 Section 3. (a) Separate and apart from the power

8 granted to the authority in regard to the Kilby property in

9 Sections 14-2-26 and 14-2-27, Code of Alabama 1975, and in

10 addition to those powers, the authority shall have the power

11 to sell, convey, and lease all or any part of any real and

12 personal property now or hereafter owned by it, together with

13 the improvements thereon and ancillary thereto, that is not

14 being used by the department as a facility, and the sale of

15 which will not impair the outstanding obligations of the

16 authority, and as an aid to the sale or lease, to cause to be

17 prepared by competent real estate experts a land use map and

18 plan. The authority may lease or sell lands and property owned

19 by it without going through the Lands Division or in any other

20 way complying with the provisions of Title 9, Chapter 15,

21 Article 3, Code of Alabama 1975. The authority must have duly

22 adopted written policies and procedures governing the sale or

23 lease of the property which invoke open competition and

24 produce the best price, to include obtaining an appraisal,

25 advertising the sale or lease, and conducting the sale by

26 public auction or publicly sought sealed bid. The sale or

Page 26
1 lease shall be made at public sale or private sale as the

2 authority shall determine to be necessary or desirable.

3 (b) The award of any property offered for public

4 sale or lease shall be made to the highest responsible bidder

5 unless all bids shall be rejected as inadequate and other

6 public offering shall be made upon notice republished as

7 prescribed above. Any sale shall be for all cash. Each deed or

8 lease to effectuate any sale or lease shall be signed in the

9 name of the authority by its president, to which the seal of

10 the authority shall be affixed and attested by its secretary.

11 (c) The proceeds of each sale or lease of any such

12 property shall be used first to pay the reasonable and

13 necessary expenses of the sale or lease, and the balance

14 remaining shall be deposited into the Alabama Correctional

15 Capital Improvement and Facilities Maintenance Fund.

16 (d) The department will maintain all facilities not

17 being used for the purposes designated in Section 14-2-1(7),

18 Code of Alabama 1975, and designated for sale, lease,

19 demolition, or other disposition, so long as title thereto is

20 held by the authority, to enable the authority to achieve the

21 best possible price or other result upon the sale, lease, or

22 other disposition thereof.

23 (e) Upon request of the authority, the department

24 shall convey to the authority any real and personal property

25 to which the department holds title and acquired with proceeds

26 of the authority's bonds or income thereon.

Page 27
1 Section 4. The state, through any of its departments

2 or agencies or a subdivision thereof, shall lease or purchase

3 upon commercially reasonable terms, or a combination thereof,

4 the existing prison facility in Perry County to be utilized by

5 the department or any other state department or agency using

6 funds appropriated for that purpose from the State General

7 Fund.

8 Section 5. A person or entity submitting a proposal

9 for any project under this act shall disclose both of the

10 following:

11 (1) The names of all lobbyists, attorneys, or other

12 professionals or professional firms hired or retained by the

13 person or entity on or after December 6, 2019.

14 (2) The names of all current or past elected

15 officials or family members as defined in Section 36-25-1(15),

16 Code of Alabama 1975, associated in any manner with the person

17 or entity submitting the proposal or associated in any manner

18 with a subcontractor of the person or entity on or after

19 December 6, 2019.

20 Section 6. Nothing in this act shall be construed to

21 limit the department from continuing to use third party or

22 private facilities for any program or housing of inmates that

23 are not under medium, maximum, or close security supervision.

24 Section 7. The provisions of this act are severable.

25 If any part of this act is declared invalid or

26 unconstitutional, that declaration shall not affect the part

27 which remains.

Page 28
1 Section 8. This act shall become effective

2 immediately following its passage and approval by the

3 Governor, or its otherwise becoming law.

Page 29