SB302 Alabama 2017 Session

Summary

Primary Sponsor

Cam Ward

Republican

Session

Regular Session 2017

Title

Prisons, Alabama Prison Transformation Initiative Act, construction of new facilities provided for, Joint Legislative Prison Committee, reporting requirements increased, Alabama Corrections Institution Finance Authority, bonds authorized for prison facilities, construction agreements, renovating and demolishing existing prison facilities, proceeds on existing one mill tax, distribution further provided for, Sec. 11-101A-8.1 added; Secs. 11-101A-1, 11-101A-2, 11-101A-4, 11-101A-8, 14-2-1, 14-2-6, 14-2-12, 14-2-13.1, 14-2-14, 14-2-16, 14-2-19, 14-2-21, 14-2-28, 14-2-34, 28-3-201, 28-3-202, 28-3-204, 29-2-20, 38-4-12, 40-8-3 am'd.

Summary

SB302 creates a framework for financing, constructing, renovating, and leasing prison facilities in Alabama through public authorities, with the Department of Corrections leasing up to three facilities and bonds backed by tax and liquor revenues.

What This Bill Does

It allows counties and municipalities to form authorities to acquire land and buildings for prison facilities to lease to the state. The Department of Corrections may lease up to three prison facilities from these authorities. The Alabama Corrections Institution Finance Authority may issue up to $350 million in bonds to finance renovation of existing prisons and construction of new ones, contingent on the state leasing at least two facilities (reduced to $100 million if three facilities are leased). Bond debt is secured by portions of the one-mill ad valorem tax and the liquor tax, with additional security from rent, Kilby property proceeds, and other sources. The act also changes governance, adds reporting requirements, sets site selection criteria, mandates use of prison labor for eligible construction, requires Perry County facility considerations, and includes provisions for title transfer to the state after debt is paid along with various transparency and compliance measures.

Who It Affects

• Counties and municipalities, which may form public authorities to acquire and lease prison facilities to the State of Alabama.
• Department of Corrections and the Alabama Corrections Institution Finance Authority, which may lease facilities, issue bonds, manage construction, and oversee debt repayment and facility operations.

Key Provisions

• Authorizes counties and municipalities to create public authorities to acquire real and personal property for lease to the State of Alabama for prison facilities.
• Allows the Department of Corrections to enter into leases of up to three prisons from authorities that are formed under this act.
• Authorizes the Alabama Corrections Institution Finance Authority to issue up to $350 million in bonds for renovation of existing prisons and construction of new prisons, with the total amount reduced to $100 million if three facilities are leased.
• Bonds are secured by a mix of revenues, including rent paid by the state, net proceeds from the Kilby property, unspent bond proceeds, insurance proceeds, and other security interests; there are also priority security provisions using portions of the one-mill tax and liquor taxes for debt service.
• Requires title to prison facilities to transfer to the state after final debt payment, with a process for leases and potential transfer of land from state or local donors.
• Sets site selection criteria for new facilities, prioritizing locations with existing prisons, adequate correctional staff, infrastructure readiness, unemployment considerations, and proximity to medical care.
• Mandates construction work to use prison labor where appropriate; otherwise, contracts are awarded by lowest responsible bidder with standard bid alternates and lump-sum contracts.
• Imposes reporting requirements, including semi-annual construction progress reports and annual operational savings reports related to prison consolidation.
• Adds disclosure requirements for proposals (lobbyist and public official connections) and expands governance, including revised board composition and duties.
• Allocates tax revenue (one-mill and liquor tax proceeds) to bond debt service first, with remaining funds directed to welfare and mental health funds as specified by existing law.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Prisons and Prisoners