The Alabama Legislature convened for a 5-day special session which began on September 27 where it debated and approved a package of bills that will construct new prisons and improve existing facilities. The package also included a sentencing reform bill. Governor Ivey received and signed the bills into law immediately.
While the Business Council of Alabama did not take an official position on the matter, BCA’s Interim Executive Director, Robin Stone expressed his gratitude to the Governor and members of the legislature for tackling this important issue.
“Once again, Governor Kay Ivey and the members of the Alabama legislature showed great leadership by identifying a problem and coming together in a bipartisan manner that resulted in real and practical answers,” said Stone. “They brought forth an innovative and common-sense Alabama solution to an Alabama problem.”
The $1.3 billion plan will be paid for through a $785 million bond issue, the use of $400 million in one-time federal dollars from the coronavirus American Rescue Plan Act allocated to Alabama, and $154 million from the state’s General Fund Budget. The state finance office expects the debt service on the bond issue to be $50 million annually.
The legislation lays out a three phased plan that begins with the construction of new facilities. Phase II projects would begin only after completion of at least 60% of the new construction and a certification that funds are available to move forward. Phase II would also include renovation of existing Department of Correction facilities in Madison and Jefferson Counties; construction of a new, 1,000 – bed women’s facility in Elmore County, and renovation of one existing facility in either Barbour or Bullock counties. Phase III will require the completion of a study on the status of all the newly built or renovated facilities, trends in the inmate population and other relevant factors. It also requires a report to the Governor and Legislature.
The proposals will create at least three new prisons. One will be located in Elmore County with at least 4,000 beds and will specialize in medical and mental health services, education and addiction treatment programs. Another facility holding 4,000 will be built in Escambia County. These two “mega prisons” will be the first new correctional facilities built by the state since the mid 1990s. The two new sites will be twice as large as any current state facility. Work is expected to begin on the new prison projects in early 2022.
The legislation includes an exception to the state’s standard competitive bid process on public works projects and allows direct negotiations with the contractors. Rep. Steve Clouse, R-Ozark, who sponsored the legislation said that Caddell Construction based in Montgomery and B.L. Harbert International in Birmingham are each expected to be the main contractors for Phase I projects in Elmore County and Escambia County, respectively. The legislation requires that all projects after the first two prisons would follow the standard public works bid law. The legislation calls for the closure of four existing facilities once the new prisons are completed.
The legislation also contains provisions that promote the participation of minority-owned businesses and requires the state to provide training programs to help minority-owned businesses compete for work associated with the projects.
Clouse added that direct negotiations with the contractors, which had already done design work on these projects, would save up to $75 million and speed up completion.
The legislation was sponsored in the Senate by General Fund Chairman Greg Albritton (R-Range). It was approved by a vote of 32-2.