A source-linked working record of the state's siting process, Laurel's response, and the public record.
Psychiatric Prison
Newest events first. Open any entry for context and source links. Court filings open as PDFs. Dates come from the documents themselves, and some earlier events are still being added.
Last reviewed
Oct 21, 2026
The court dissolved its August 26 preliminary injunction, finding that the agencies sufficiently complied with that order. The agencies are no longer barred by that injunction from taking actions toward construction. This order does not decide Laurel CARED's second injunction motion, which the court says it will address separately.
The court weighed economic harm from continued delay and MEPA's requirement to narrowly tailor injunctive relief.
The order does not dismiss the case or resolve the challenges raised in the second injunction motion.
Laurel CARED responded to the State's opposition, arguing that the revised Environmental Assessment still lacks adequate support for water demand, municipal capacity, water pressure, and options for obtaining utility service. It asks to restrict construction and on-site activities while the court reviews the case, allowing off-site planning and engineering to continue.
In a separate order filed the same day (Doc 63), the court dissolved the August 26 injunction without deciding the second injunction motion.
The City requested permission to participate as a friend of the court on municipal utilities, infrastructure, authority, and the environmental record. Laurel CARED consents; the State agencies oppose. The City expressly takes no position on the injunction arguments.
BOI and DPHHS filed separate answers responding to the amended complaint, raising defenses, and asking the court to dismiss it with prejudice. These are requests by the agencies, not court rulings.
BOI and DPHHS jointly opposed the second motion for a temporary restraining order and preliminary injunction. They defend the revised Environmental Assessment, dispute the grounds for injunctive relief, and ask the court to deny the motion.
BOI filed an October 9 letter from the legislative Long-Range Planning Interim Budget Committee. The committee urges Laurel to repeal Ordinance O26-03 and provide water service, and alleges disability discrimination. These are the committee's positions, not court findings.
The State filed its reply supporting dissolution of the August 26 injunction and a notice stating that the motion was fully briefed. Its reply includes Dan Villa's declaration concerning construction scheduling and estimated delay costs.
Laurel CARED filed an amended complaint that asks the court to require an environmental impact statement. Alongside it, Laurel CARED filed a second motion for a temporary restraining order and preliminary injunction, arguing the revised Environmental Assessment still does not comply with MEPA on water supply. Laurel CARED did not oppose the State's motion to dissolve the current injunction as it relates to the prior assessment. Laurel CARED asked the court to keep that injunction in place until the court ruled on the new restraining order and injunction request.
The court later dissolved the August 26 injunction on October 20 (Doc 63), leaving the second injunction motion for separate consideration.
The revised Final Environmental Assessment, with Appendix K responding to public comment, was signed by DPHHS Director Brereton and BOI Executive Director Villa. A September 17 Cushing Terrell memo responding to the City's comment is included in the court-filed package.
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The State filed a motion to dissolve the August 26 injunction, saying it had investigated and explained the water supply issues, revised the assessment, and provided a comment period and hearing.
Council voted 6-0 to adopt the City's formal comment, objection, and request for withdrawal and further environmental review of the revised Environmental Assessment.
The vote is recorded in draft minutes. The adopted resolution text will be linked when available.
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The hearing ran from 1 to 3 p.m. in Billings. The comment period, first set to end September 8, was extended to September 15 at Laurel CARED's request.
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Ordinance O26-04, an annexation moratorium running to September 30, 2027 or until repealed, was on the September 8 agenda for second reading after passing first reading on August 25.
The signed ordinance states it was adopted on second reading September 8 and takes effect 30 days after passage.
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The state published a revised Environmental Assessment, shown as a redline against the June 12 version, with a Cushing Terrell memo on the City's water system capacity. It opened a new public comment period.
The State filed these materials in the court record the same day.
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Judge Ed Zink barred construction acts, including permitting, ground-breaking and on-site work, while allowing off-site planning and design. The court sent the Environmental Assessment back to the State for more investigation and explanation of water supply issues and required a revised assessment with a new public participation opportunity.
At this early stage, the court found Laurel CARED more likely than not to succeed on its claims about the State's water demand and pressure explanation, and about annexation as a prerequisite to water service. On two other claims, emergency services and alternative sites, the court did not find at that stage that Laurel CARED was likely to succeed.
These were preliminary findings made only to decide whether an injunction was needed, on limited supporting documents for some claims. They are not final rulings on the merits. Arguments for summary judgment have not been made, and the court could still rule in Laurel CARED's favor on any claim.
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Council approved Resolution R26-50 by a 7-0 vote, engaging land-use attorneys to work with the City Attorney on the state facility, municipal utilities, and the City's legal options, including possible participation in litigation.
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The court heard argument on Laurel CARED's motion for a preliminary injunction. The August 26 order records BOI's counsel saying construction was set to begin in September.
The hearing transcript will be added to the case page when we have it.
The court declined to issue a temporary restraining order before the hearing and set the preliminary injunction hearing for August 10, 2026, at 1:15 p.m.
Sources
Council passed O26-03 as an emergency ordinance, extending the pause on annexation applications for up to 90 days. Mayor Vogele approved it the same day.
The County Commission held a special meeting on the state's request for governmental use of the land. More than 30 residents testified, and the County said it had no authority to deny the request.
The City Public Works Director responded to a June 16 request from the State's engineer, saying the City could not provide a will-serve letter or certified fire flow test and could not yet answer whether it had adequate water capacity.
The City also noted low water pressure on the newly extended Highway 10 main and its annexation policy for service outside city limits.
The letter is quoted in the court's August 26 order.
Laurel CARED filed Laurel CARED v. State of Montana in Yellowstone County District Court under the Montana Environmental Policy Act, with a motion for a temporary restraining order and preliminary injunction.
The case is Cause No. DV-56-2026-0000855-DK, before Judge Ed Zink.
At a special meeting, the City Council selected Kris Vogele from three letters of interest to serve the rest of the vacated term.
The state posted a Final Environmental Assessment dated June 12, 2026, finding no significant impact. On the same day, BOI closed on the 114-acre property for $4.25 million, which the press reported on June 16.
The July 13 date in the purchase agreement was the deadline for closing.
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The state held a hearing in Billings at 1 p.m. on the draft Final Environmental Assessment. Comments continued through June 5.
A fuller version of the assessment, which describes a possible expansion to 64 beds, had been posted May 18.
Mayor Dave Waggoner announced his resignation on May 19, effective May 22, ahead of a possible recall election. Council President Tom Canape served as interim leader.
The recall effort grew out of the facility siting process and the questions about transparency that came with it.
County election officials approved final recall signatures, moving the Waggoner recall process forward.
This is a major post-April governance event tied directly to the psychiatric prison fallout.
It should replace the older timeline's stale March-only recall framing.
Sources
Council passed a revised annexation moratorium 7-0 for 90 days, with exemptions for two applications already under review.
The City's later letter to the State describes this moratorium as expiring July 27, 2026.
Daily Montanan coverage described a listening session where residents sought answers and left more frustrated.
This is the first major post-hearing press item identified for the timeline refresh.
The News From The States mirror was readable during review.
BOI and DPHHS held two public sessions in Laurel, at 10 a.m. and 4 p.m., on the draft Environmental Assessment under the Montana Environmental Policy Act. Written comment was accepted until May 6.
The draft assessment was posted two days before the hearing.
Sources
The governor's office declined a meeting with Laurel C.A.R.E.D., citing C.A.R.E.D.'s request for a DOJ investigation and possible legal action.
The same communication also confirmed the April 22 public hearing at Laurel Public Library.
This event shows the state shifting from a possible meeting to a formal refusal after accountability requests escalated.
Source link coming soon.
On March 24, BOI sent Yellowstone County a notice for governmental use of the property, and Villa told the City Council by phone that a public listening session would be held April 22 at 10 a.m.
BOI withdrew the county notice on April 2, after the County asked for ownership documents. BOI said it would provide a new notice if the land is in public ownership after a decision to proceed is final.
Press coverage of the hearing plans followed in early April.
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At a special meeting, Laurel City Council did not pass a proposed emergency pause on annexation requests. An emergency ordinance required six votes, and press reported a 5-3 tally.
Supporters argued the pause would give city staff time to assess infrastructure and service capacity.
Council later passed annexation moratoriums on April 28 (O26-02) and July 14 (O26-03), and a longer one on September 8 (O26-04).
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A recall petition targeting Mayor Dave Waggoner was filed with Yellowstone County election officials.
The recall effort centered on local governance, transparency, and the handling of the psychiatric prison siting process.
This event belongs in this project timeline because the recall emerged directly from the facility process.
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Laurel Public Schools and Superintendent Matthew Torix issued a written statement opposing placement of the facility near the school. The City Council also met that evening with extensive public comment.
The district raised concerns about proximity to the school and the state's process.
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At the January 20 City Council workshop, BOI Executive Director Dan Villa read a statement that BOI had executed a buy-sell agreement for about 114 acres west of Laurel along Highway 10 and would begin the formal process of requesting annexation and zoning.
News coverage of the site followed in the days after the workshop.
The site sits in Laurel's westward growth area and would require annexation or other land-use decisions.
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DPHHS announced Laurel as the selected site for the new secure psychiatric facility.
The announcement came after Hardin and Miles City had submitted formal proposals.
Public reporting quickly noted that other communities were surprised by Laurel's selection.
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CAO Kurt Markegard wrote to BOI Executive Director Dan Villa seven days after the November 10 proposal deadline. The letter says the City did not nominate itself and describes a location just outside the city limits that the Mayor and CAO had discussed with the state during the summer. It was not a formal proposal submission.
The letter did not include the formal proposal materials requested through the state's process.
It documents that Laurel-area site discussions occurred before the public knew Laurel was under active consideration.
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The state's deadline for community proposals was 5 p.m. on November 10, 2025. Big Horn County and Custer County submitted proposals. Laurel did not.
In a statement for the BOI meeting, Executive Director Dan Villa said the Executive and Legislative branches held differing interpretations of the Board's authority, and recommended the Board suspend further consideration until it received written guidance.
The statement also says previously reviewed sites, including those on Skyway Drive, were not viable.
On September 10, 2025, Governor Gianforte's letter to BOI thanked the Board for "the brief pause you have placed" and encouraged public involvement as the Board worked with DPHHS.
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NAMI Montana posted DPHHS Director Charlie Brereton's statement that "it looks more and more like the Billings region will be the location for the facility." The date shown is the post date.
At this stage, the public framing was regional, not Laurel-specific.
The facility population was described as criminal defendants requiring intensive psychiatric treatment in a secure setting.
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Montana Free Press reported that lawmakers approved behavioral health spending that included money for a new mental health facility in eastern Montana. The date shown is the article date.
The funding package included money for a facility serving people involved in the criminal justice system who require psychiatric evaluation or treatment.
This is the earliest public funding anchor for the project timeline.
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