1. If the department of corrections and rehabilitation is beyond capacity and denies the admission of an inmate sentenced to the physical custody of the department, the department may use local jails or correctional facilities and negotiate the terms of the agreement with each facility.

2. Admission of an inmate is denied by the department when a county requests admission to the department with a judgment of conviction ordering an individual to be placed with the physical custody of the department and the request for admission is denied or unavailable within seven days of notification to the department. When the

denial of admission exceeds seven days, the department is responsible to pay the contracted rate beginning from the date of initial notification of the judgment of conviction and placement in the physical custody of the department.

3. An agreement under this section must include a minimum daily rate per inmate, including medical costs, to be paid by the department to the governing body of the jail or correctional facility beginning the day after the department receives notice from the district court of an order placing an individual in the care and custody of the department and ending on the admission date provided by the department.