Committee hears opposition to opening corrections contracts beyond Montana nonprofits

Representative Steve Kelly (House District 9) sponsored House Bill 5 40, asking the House Judiciary Committee to broaden who can bid on certain Department of Corrections programs so that "Montana corporations," not only Montana nonprofit corporations, can compete for contracts.

Proponents including Scott Eichner, rehabilitation program chief for the Department of Corrections, said the change is intended to increase competition and flexibility as Montana''s treatment needs evolve. Eichner told the committee a forthcoming amendment would limit competition to Montana entities; he said the department's goal is to ensure adequate providers and better value when solicitations now often attract a single respondent.

Opponents said the change could have disruptive effects on long-standing community corrections providers. Amy Teney, CEO of Boyd Andrew Community Services and president of the Montana Community Corrections Association, said nonprofit providers have built trust and specialized local relationships that cannot be easily replicated. "It would expose procurement to bids from out-of-state corporations that do not understand Montana, lack relationships with our communities, and potentially underbid to gain a foothold," Teney said.

Butte-Silver Bow Sheriff Ed Lester said local contracts rely on deep, decades-long relationships with local providers for services such as food, transportation and nursing. Jefferson County Commissioner Kory Kirsch cited Elkhorn Treatment Center's recidivism figures, saying the county would not have approved its facility lease to an out-of-state provider. Several witnesses, including the Montana Nonprofit Association and local provider CCCS, urged the committee to reject or narrow the bill.

Committee members pressed proponents on statutory language. Representative Baum asked whether removing the words "nonprofit Montana corporations" would effectively exclude nonprofits; Eichner and other DOC proponents said that was not the intent and that Montana nonprofits would remain eligible. Members pressed whether "Montana corporation" meant domestic incorporation in Montana or an out-of-state entity registered to do business in Montana; witnesses said they would research that point and that an amendment could clarify it.

The hearing produced no immediate vote. Representative Kelly said the change is aimed at flexibility and that the sponsor would accept amendments to address member concerns. The committee proceeded to the next item.