53-30-504. Authority to enter into contracts -- terms -- financing. (1) The department may contract with one or more local governmental entities for the housing of and provision of services to inmates sentenced to the department or the department's correctional institutions at a regional correctional facility designed, financed, constructed, or operated by a local governmental entity, the department, or both.
     (2) The contract must be authorized and approved by the governor, the department, and the governing body of the local governmental entity. The contract must set forth fully the purposes, powers, rights, and responsibilities of each party to the contract and address necessary and proper matters set forth in 7-11-105.
     (3) A contract may include an agreement to jointly design, finance, construct, and operate a regional correctional facility.
     (4) The department may not enter into a contract unless the local governmental entity has the legal authority and the ability to finance its share of the costs under the contract.
     (5) A regional correctional facility may be constructed on real property owned by the state of Montana or a local governmental entity or jointly owned by both.
     (6) The proceeds of long-range building program general obligation bonds authorized to be issued in accordance with Title 17, chapter 5, part 8, may be used, in whole or in part, to construct a regional correctional facility, whether or not the facility or any part of it is to be owned and operated by the state. If the proceeds of long-range building program general obligation bonds or other state revenue is to be used in whole or in part to construct a regional correctional facility that is to be owned and operated by a local governmental entity, the department of administration is not required to procure the design, engineering, or construction services for the facility. The contract may provide that the local governmental entity shall procure the services, but must also provide that the department of administration must be involved in the development and approval of the plans and specifications for the facility prior to the time the facility is let to bid.
     (7) The department shall use the proceeds of long-range building program bonds and other state revenue appropriated for regional correctional facilities to negotiate with local government entities or private providers to obtain the greatest number of beds that is consistent with program objectives for the least cost to the state.

     History: En. Sec. 4, Ch. 316, L. 1995.