SLS 11RS-1259 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2011
SENATE BILL NO. 267 (Substitute of Senate Bill No. 227 by Senator Mills)
BY SENATOR MILLS
CORRECTIONAL FACILITIES. Provides for pre-paid lease contracts of state correctional
facilities. (gov sig)
AN ACT1
To enact R.S. 39:1800.4(C)(3), relative to state and local correctional facilities; to provide2
for pre-paid leases of certain state correctional facilities; to provide for certain terms3
of pre-paid leases of state correctional facilities; to provide for an effective date; and4
to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 39:1800.4(C)(3) is hereby enacted to read as follows: 7
ยง1800.4. State and local corrections facilities; private contracts8
* * *9
C. (1)10
* * *11
(3) Notwithstanding any provision of law to the contrary, the12
department may amend a current operating agreement or contract with a13
private correctional services contractor, awarded under the provisions of this14
Chapter for the provision of correctional or geriatric services, to include a lease15
of the state facility where those services are being provided. Any such lease16
shall be pre-paid in an amount equal to the fair market value of the state facility17 SB NO. 267
SLS 11RS-1259 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
to be leased, shall be for a period not to exceed twenty years, and shall not1
contain an option for the lessee to purchase the state facility. Such pre-paid2
lease may provide that the term of the contract to provide correctional or3
geriatric services shall be the same as the term of the pre-paid lease. Such pre-4
paid lease may provide for a per diem to be paid to the private correctional5
services contractor or for an increase in the per diem paid to the private6
correctional services contractor under the terms of the contract to provide7
correctional or geriatric services. Any additional per diem as provided in this8
Paragraph shall be calculated so that it shall not exceed the pre-paid lease9
amount and the cost of capital associated with the pre-paid lease amount10
applied evenly over a period of time equal to the term of the pre-paid lease and11
the amended contract to provide correctional or geriatric services.12
* * *13
Section 2. This Act shall become effective upon signature by the governor or, if not14
signed by the governor, upon expiration of the time for bills to become law without signature15
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If16
vetoed by the governor and subsequently approved by the legislature, this Act shall become17
effective on the day following such approval.18
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Martha S. Hess.
DIGEST
Mills (SB 218267)
Present law provides that the Department of Public Safety and Corrections and local
governmental subdivisions are authorized to enter into contracts with prison contractors for
the financing, acquiring, designing, leasing, constructing, and operating of prison facilities.
Present law provides that contracts awarded under the provisions of R.S. 39:1800.1 through
1800.7, including contracts for the provision of correctional or geriatric services or for the
lease or use of public lands or buildings for use in the operation of state or local facilities,
may be entered into for a period not to exceed 20 years, subject to the requirement for annual
appropriation of funds and provided that contracts for correctional or geriatric services may
be entered into for successive periods not to exceed five years, provided that contracts which
involve expenditures for capital improvements may not exceed 10 years. These contracts
are subject to annual appropriation of funds.
Proposed law retains present law and authorizes the department to amend a current operating
agreement or contract with a private correctional services contractor, awarded under the SB NO. 267
SLS 11RS-1259 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
provisions of present law to provide correctional or geriatric services, to include a lease of
the state facility where those services are being provided. Any such lease shall be pre-paid
in an amount equal to the fair market value of the state facility to be leased, shall be for a
period not to exceed twenty years, and shall not contain an option for the lessee to purchase
the state facility. Such pre-paid lease may provide that the term of the contract to provide
correctional or geriatric services shall be the same as the term of the pre-paid lease. Such
pre-paid lease may provide for a per diem to be paid to the private correctional services
contractor or for an increase in the per diem paid to the private correctional services
contractor under the terms of the contract to provide correctional or geriatric services. Any
additional per diem shall be calculated so that it shall not exceed the pre-paid lease payment
and the cost of capital associated with the pre-paid lease amount applied evenly over a
period of time equal to the term of the pre-paid lease and the amended contract to provide
correctional or geriatric services.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 39:1800.4(C)(3))