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HB 54: LEASE OF CORRECTIONAL FACILITY - 1998 Budget/Special Session Sponsor: Select Committee on Capital Financing & Investments During the 1997 session, after several years of debate over the need for (and location of) a new state prison, the Legislature authorized $42 million for construction of a receiving facility and high-security prison adjacent to the state penitentiary at Rawlins. A year later, HB 54 was proposed to allow the Department of Corrections to execute a lease with a private party to obtain the use of prison facilities, instead of spending the 1997 appropriation to build a new prison. HB 54 authorized the State Building Commission (comprised of the five statewide elected officials) to approve the formation of a Wyoming nonprofit corporation to lease a prison facility from a private party. The State Building Commission would have to approve the articles of incorporation and initial and subsequent members of the nonprofit corporation's board of directors. HB 54 also required the State Building Commission to hire an independent financial consultant to analyze the costs and benefits to the state of leasing a prison, directly funding construction of a prison, or financing a prison with bonds. Much of HB 54 was taken up with attempting to ensure that even though the prospective prison would be built for state use, the Department of Corrections could not pledge the state's full faith and credit for any lease payments or other financing, and that any appropriations by the Legislature to meet lease obligations could not be considered a pledge of full faith and credit, nor considered binding on future Legislatures. Proponents of HB 54 argued that it was needed to free the $42 million prison appropriation for other uses. Without HB 54, the biennial budget could not be balanced (as required by the Wyoming Constitution) without massive cuts in programs or a tax increase. Opponents argued that it would cost substantially more to lease a prison from a third party than to construct one outright, so the Legislature should accept the short-term pain of program cuts or a tax increase rather than the long-term pain of nearly doubling the cost of the prison with bond payments over the next 15 years. HB 54 passed the House, 36-23 (1 excused), and the Senate, 16-11 (3 conflicts). The votes listed below are the third reading (final passage) votes in each house. A YES vote means the legislator favored allowing the state to form a nonprofit corporation to lease a prison (to be constructed), rather than build one itself, in order to free funds for other purposes. A NO vote means the legislator opposed the leasing option.
www.equalitystate.org Copyright 1999, Equality State Policy Center | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||