Directs the department of corrections to establish an oversight committee to develop a comprehensive interagency plan to provide voluntary, nondenominational moral and character-building residential services and supports for offenders who are incarcerated in prison.

Provides that in developing an interagency plan, the oversight committee shall seek input on moral and character-based residential programs in our state's adult correctional facilities from the public, including faith-based communities, state institutions of higher education, and the business community.

Requires the secretary of corrections to appoint institutional chaplains for the state correctional institutions for convicted felons as employees of the department of corrections. The secretary of corrections may further contract with chaplains to be employed as is necessary to meet the religious needs of those inmates whose religious denominations are not represented by institutional chaplains and where volunteer chaplains are not available.

Provides that the department of corrections may not compel a chaplain who provides certain services to carry personal liability insurance as a condition of employment.