(1) An individual, corporation, partnership, association, or other private organization or entity may not construct a private correctional facility in this state unless authorized by the department.
(2) An individual, corporation, partnership, association, or other private organization or entity may not operate a private correctional facility in this state unless licensed by the department. A license is nontransferable.
(3) A person convicted in any state or U.S. federal court may be confined in a private correctional facility in this state pursuant to approval by the department of a written agreement between the originating jurisdiction and the private correctional facility if the person is at all times and in all places within the correctional facility kept physically separated from persons convicted in this state. The agreement must include provisions for returning an out-of-state inmate to the originating jurisdiction prior to the inmate's parole or release.