(1) The department may operate or select a contractor to operate a program in an existing correctional facility.

(2) The department may select a contractor to site a facility and operate a program if, after a public hearing conducted by the contractor, the applicable governing body of the community passes a resolution in support of the proposal.

(3) The facility must be sited near a civilian population center within at least:

(a) 30 minutes emergency response time of a hospital; and

(b) 30 minutes emergency response time of a fulltime or volunteer fire department.