private prisons; contracts; prohibition

Plain English Breakdown

The official source material does not provide a specific effective date, leaving uncertainty about when exactly these rules begin.

HB2823: Ban on Minimum Occupancy Clauses in Private Prison Contracts

This law stops Arizona's Department of Corrections from signing or renewing private prison contracts that require the facility to keep a certain number of beds filled.

What This Bill Does

• Prohibits the department from entering into new contracts with private prisons if they include minimum occupancy clauses.
• Stops the department from renewing existing contracts with private prisons that have these clauses.
• Requires all covered contracts to state payment is based only on the actual number of inmates physically housed at the facility.
• Defines a 'minimum occupancy clause' as any rule requiring a prison to maintain a specific percentage of filled beds.

Who It Names or Affects

• The Arizona Department of Corrections
• Private prison operators seeking new contracts or renewals in Arizona

Terms To Know

Minimum occupancy clause

A contract rule that requires a private prison to keep a specific percentage of its beds filled.

Private prison operator

An entity with which the department enters into contracts for correctional facilities, as referenced in this bill.

Limits and Unknowns

• The law only applies to new contracts and contract renewals signed after the effective date.
• It does not change terms for existing private prison contracts that are already in place before this act takes effect unless they are being renewed under a clause with minimum occupancy requirements.

Official Summary Text

HB2823 - private prisons; contracts; prohibition

Current 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.