Senate Bill No. 495-Committee on Finance

July 5, 1997
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Referred to Committee on Finance

SUMMARY--Authorizes director of department of administration to enter into contract to finance, acquire and construct correctional facility for juveniles. (BDR S-1868)

FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: Yes.

EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.

AN ACT relating to juveniles; authorizing the director of the department of administration to enter into a contract to finance, acquire and construct a correctional facility for juveniles; and providing other matters properly relating thereto.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1 As used in this act, unless the context otherwise requires, the words and terms defined in sections 2 to 6, inclusive, of this act have the meanings ascribed to them in those sections.
Sec. 2 "Contractor" means a person who has entered into a contract with the department pursuant to the provisions of section 7 of this act.
Sec. 3 "Correctional services" includes the following functions, services and activities when provided with regard to the facility:
1. The operation of the facility, including management, custody of juveniles and security;
2. Services for food, medical attention, transportation and sanitation, a commissary and other ancillary services;
3. The development and implementation of systems for classification, management and information and other similar services;
4. Education, training and programs for employment;
5. Counseling, treatment programs and other similar programs; and
6. Physical education and recreational activities.
Sec. 4 "Department" means the department of administration.
Sec. 5 "Director" means the director of the department.
Sec. 6 "Facility" means a facility to provide correctional services to juveniles that is financed, acquired, constructed and operated pursuant to the provisions of this act, including:
1. Any improvement;
2. Any preliminary plan, study or survey related to the plan;
3. The land or the right to the land; and
4. Any furnishings, machines, vehicles, apparatus or equipment used in connection with the facility.
Sec. 7 1. The director may, to the extent of legislative appropriations and authorizations, enter into a single contract to finance, acquire and construct the facility. The contract may include a provision that requires the contractor to provide correctional services for the facility. The provisions of this subsection do not prohibit the department or any other state agency from providing correctional services for the facility.
2. The contract may include an assignable lease or installment purchase agreement for the facility. The lease or agreement constitutes a debt of the State of Nevada in an amount determined by the state board of examiners not exceeding $20,000,000.
3. Money for the payment of the debt incurred pursuant to this section will be provided for in the annual tax imposed for the payment of the obligations of the State of Nevada from the consolidated bond interest and redemption fund or by other legislative act. The provisions of NRS 349.238 to 349.248, inclusive, apply to the payment of the debt. Any interest on the debt must be paid at least semiannually and the principal must be paid within 20 years after the date the contract is approved by the state board of examiners.
4. Except for debt incurred as provided in subsection 1, all payments of money required by the contract authorized pursuant to the provisions of subsection 1 must be subject to biennial appropriation by the legislature and must not be due and payable unless an appropriation is made.
5. The department may request that proposals for correctional services be submitted and must specify the requirements for the proposal.
6. A proposal submitted to the department must:
(a) Meet the requirements specified in the request; and
(b) Set a fixed price for the services offered.
7. The contract to finance, acquire and construct the facility is exempt from the provisions relating to bids set forth in NRS 341.145 to 341.151, inclusive.
Sec. 8 The department may not enter into a contract that includes provisions for correctional services unless the contractor provides:
1. Evidence of his qualifications, experience and ability to comply with applicable court orders and correctional standards for juveniles.
2. A plan of indemnification for liability, including indemnity for civil rights claims. The plan must protect the state from all claims and losses incurred as a result of the contract. The provisions of this subsection do not deprive the contractor or the state of the benefits of any law that limits its exposure to liability for damages.
3. Evidence of past performance of similar contracts, including audited financial statements for the past 5 years, and other financial information as requested by the department.
4. Management personnel necessary to carry out the terms of the contract.
Sec. 9 The contract entered into pursuant to the provisions of this act:
1. May be entered into for not more than 20 years.
2. Must provide:
(a) Internal and perimeter security to protect the public, employees and juveniles at the facility that is approved by the department.
(b) Discipline for juveniles at the facility in accordance with applicable standards and procedures that comply with the standards and procedures of the department.
(c) Food, clothing, housing and medical care for juveniles at the facility.
Sec. 10 The director of the department shall request a supplemental appropriation in the budget of the department submitted to the 70th session of the Nevada legislature for any necessary funding relating to the operation of the facility, if the facility is completed before July 1, 1999.
Sec. 11 This act becomes effective upon passage and approval.

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