(1) The Department of Corrections shall negotiate with Marion County and Umatilla County, respectively, the conversion of Oregon State Correctional Institution and Eastern Oregon Correctional Institution into regional correctional facilities to house both state and county prisoners. The department shall include in the negotiations any other nearby counties desiring to participate in the operation of the regional correctional facility.

(2) If agreement is reached with Marion County, in the case of the Oregon State Correctional Institution, and with Umatilla County, in the case of Eastern Oregon Correctional Institution, the department shall proceed to operate those institutions, or either of them as to which agreement is negotiated, as regional correctional facilities according to the terms of the agreement. [1985 c.708 § 6; 1987 c.320 § 103]