Apparently for-profit prison companies think that this is somehow wrong or illegal or improper - company sues California over ban on for profit prisons in the state.

For profit prisons benefit the shareholders. They don’t cost states less money, and there’s far more room for mistreatment. It’s part and parcel of the lie that right wingers tell of privatization as saving people money.

It does no such thing. It just means that government is paying a company more to do something that it previously did in-house.