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Lawmakers debate rolling back lottery’s procurement exemption after 2023 change
Summary
Senate Bill 232 would restore application of the Montana Procurement Act to the state lottery and related university system contracts after a 2023 amendment created an unintended exemption; lottery commission members, industry groups and the Department of Administration testified in support of restoring the RFP process and transparency.
Senate Bill 232 would reverse a 2023 change to procurement language that, according to sponsors and several witnesses, created an exemption allowing the Montana Lottery to avoid the formal Montana Procurement Act competitive process.
Sponsor Senator Matt Regier said the change in Senate Bill 51 (2023) replaced the term "consulted employee" with "person contracted," which had the effect of making compliance with the procurement act discretionary for certain lottery contracts. "Although compliance with the procurement act is not mandatory when lottery is contracting with private persons," the memo circulated to the committee concluded that the procurement act remains a useful benchmark and that the exemption undermines public confidence in procurement, Regier said.
John Metropoulos, a member of the Lottery Commission testifying as a private citizen and former lobbyist, told the committee he supports returning to a transparent RFP process and said the commission had voted to go through the RFP process before an unexplained delay. "Someone outside the system, outside the chain of command, has taken control of this and overruled us," Metropoulos said, describing his view that the commission’s decision to use the Montana Procurement Act had been intercepted and reversed.
Industry groups including the Gaming Industry Association, Montana Coin Machine Operators Association and the Montana Tavern Association testified in favor of SB 232, urging an open, competitive process so multiple vendors, including manufacturers and local businesses, can bid.
Scott Aspenlider, representing the Department of Justice gaming advisory council, supported the bill and urged an immediate effective date to prevent the department from using the apparent exemption before the statute is changed.
Misty Giles, director of the Department of Administration, appeared as an informational witness. She said the Department of Administration supports the bill’s underlying premise to require procurement act compliance and recommended amendments to ensure the change fully reverses the exemption and also addresses a similar effect on the university system. Giles told senators the executive branch would welcome working with the sponsor on technical language.
No committee vote was completed on SB 232 during the hearing; an amendment was drafted in committee but later withdrawn and executive action held open pending technical fixes. Committee members asked who initiated the 2023 change and whether an unsolicited proposal from the incumbent vendor contributed to the delay and decision to bypass an RFP; witnesses said the origin of the 2023 conference‑committee language was not clear in agency records and that an unsolicited proposal had been received and reviewed by lottery staff in mid‑2024.
