HB2823 • 2026

private prisons; contracts; prohibition

HB2823 - private prisons; contracts; prohibition

Crime

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Junelle Cavero, Anna Abeytia, Cesar Aguilar, Lorena Austin, Seth Blattman, Janeen Connolly, Patty Contreras, Quantá Crews, Brian Garcia, Nancy Gutierrez, Alma Hernandez, Consuelo Hernandez, Lydia Hernandez, Sarah Liguori, Elda Luna-Nájera, Mae Peshlakai, Stephanie Simacek, Stephanie Stahl Hamilton, Stacey Travers, Betty J Villegas, Kevin Volk
Last action: 2026-01-26
Official status: House second read
Effective date: Not listed

Plain English Breakdown

The official source does not provide details on how existing contracts will be affected or what happens if a private prison fails to meet minimum occupancy requirements.

Private Prisons; Contracts Prohibition

HB2823 prohibits Arizona's Department of Corrections from entering into or renewing contracts with private prisons that include clauses requiring a minimum number of inmates.

What This Bill Does

Prohibits the state Department of Corrections from signing new contracts or renewing existing ones with private prisons if those contracts have clauses requiring a certain percentage of occupancy.

Who It Names or Affects

The Arizona Department of Corrections
Private prison operators in Arizona

Terms To Know

Minimum occupancy clause: A contract requirement that forces a private prison to maintain a specific percentage of its beds filled with inmates.

Limits and Unknowns

The bill does not specify the consequences if a private prison fails to meet minimum occupancy requirements.
It is unclear how existing contracts will be affected by this new law.

Bill History

2026-01-26 House
House second read
2026-01-22 House
House Rules: None
2026-01-22 House
House Public Safety & Law Enforcement: None
2026-01-22 House
House first read

Official Summary Text

HB2823 - private prisons; contracts; prohibition

Current Bill Text

Read the full stored bill text

HB2823 - 572R - I Ver

REFERENCE TITLE:
private prisons; contracts;
prohibition

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2823

Introduced by

Representatives
Cavero: Abeytia, Aguilar, Austin, Blattman, Connolly, Contreras P, Crews,
Garcia, Gutierrez, Hernandez A, Hernandez C, Hernandez L, Liguori,
Luna-N�jera, Peshlakai, Simacek, Stahl Hamilton, Travers, Villegas, Volk

AN
ACT

Amending title 41, chapter 11, article 1,
Arizona Revised Statutes, by adding section 41-1609.05; relating to the state
DEPARTMENT of corrections.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 41, chapter 11, article 1,
Arizona Revised Statutes, is amended by adding section 41-1609.05, to read:

START_STATUTE
41-1609.05.

Private prisons; contracts; minimum occupancy clause; definition

A. Notwithstanding any other law, the
department may not RENEW A CONTRACT OR ENTER INTO A NEW CONTRACT WITH A PRIVATE
PRISON OPERATOR that includes a minimum occupancy clause. All
contracts pursuant to this section shall state that the department will only
pay for rates that represent the actual number of inmates who are PHYSICALLY
housed at the prison facility.

B. For the purposes of this section,
"Minimum occupancy clause" means a clause that requires a prison to
maintain a specific percentage of occupancy at that prison.
END_STATUTE

Sec. 2.
Applicability

This act applies to contract renewals
or new contracts with a private prison operator from and after the effective
date of this act.