Provide funding to increase correctional capacity
HB 833 creates a new state special revenue account called the Future of Corrections Fund and directs the Department of Corrections to use it to secure additional correctional capacity. Eligible uses include entering build-to-lease or lease-to-own arrangements for a new correctional facility and contracting with private correctional facilities for additional bed space. The bill also exempts these uses from certain state procurement provisions and applies existing Department of Corrections administrative rules governing private correctional facility agreements.
The bill appropriates $4 million from the general fund for immediate correctional-system needs such as assessing the current prison system, transitional costs, planning and operating expenses tied to prison population management, security technology, and long-term correctional planning. It also requires a $246 million transfer from the general fund to the capital developments long-range building program account by June 30, 2027, followed by a $246 million appropriation for construction of new state correctional facilities, renovation of existing facilities, or an option to buy and renovate a building for correctional use. An additional $3.5 million is appropriated for program expansion or operations and maintenance for the new setting, with legislative intent that it become part of the base budget in the next biennium.
The bill gives the budget director a key gatekeeping role: if the director determines that state construction or renovation is not in the state’s best interests, the director must instead move the $246 million into the Future of Corrections Fund for use on alternative correctional capacity options. In making that determination, the director must consider whether the location has an adequate workforce to support inmate rehabilitation and re-entry programming. The Department of Administration is also authorized to begin planning and design work using existing contracts and interentity loans before other funding sources are received.
HB 833 also adds oversight requirements. The Department of Corrections must report expenditures and obligations related to securing or constructing correctional facilities at quarterly meetings of three legislative committees until construction is complete. The appropriation in the bill serves as legislative consent for the capital projects, and the act takes effect immediately upon passage and approval. The bill also includes a contingency provision stating that if it does not receive the constitutionally required two-thirds vote, the lease-to-own language in the fund section is narrowed to allow only build-to-lease agreements.
Overall, the bill appears to have been viewed favorably by lawmakers, passing committee and floor votes with substantial majorities in both chambers. The main point of contention is the scale and method of expanding correctional capacity, especially the use of public funds for new construction versus leasing or private-facility agreements, and the inclusion of a lease-to-own option that triggers a higher voting threshold. The budget director’s best-interests determination and the workforce requirement also suggest concern about whether a new facility can be staffed and operated effectively.
HB 833 amends state correctional funding and capital planning by creating the Future of Corrections Fund, authorizing major appropriations and transfers from the general fund, and providing legislative consent for correctional capital projects. It affects the Department of Corrections, the Department of Administration, the state treasurer, and legislative budget committees, while also interacting with statutes governing state construction, capital development accounts, and private correctional facility agreements. The bill materially expands the state’s legal authority to finance, construct, lease, renovate, or contract for correctional capacity.
The bill’s voting history shows strong overall support, with large bipartisan majorities in both the House and Senate and only small numbers of dissenting votes. The available context suggests lawmakers broadly agreed that Montana needs additional correctional capacity and related planning funds. At the same time, the structure of the bill indicates some caution, as it builds in oversight, a budget-director review, and fallback funding mechanisms if direct construction is not in the state’s best interests.
The main areas of disagreement appear to be the size of the public investment, whether the state should build, lease, renovate, or use private facilities, and whether a lease-to-own arrangement is appropriate under constitutional voting requirements. The bill’s requirement that the budget director assess workforce availability before proceeding reflects concern about staffing and rehabilitation programming at any new facility. Opposition, where present, likely centered on cost, long-term operating obligations, and the use of private or lease-based correctional capacity rather than direct state ownership.