Hamm retired after overseeing prison construction and staffing gains, while Ivey named veteran Greg Lovelace to guide Alabama corrections through 2026.
A state audit found some compliance failures, missing records, weak controls and reporting lapses in Alabama Department of Corrections financial practices.
Advocates welcomed parole changes but said lawmakers left deeper prison problems untouched, as overcrowding, violence and transparency failures continued to draw scrutiny.
Proponents shared stories of corruption and deplorable conditions Wednesday during a hearing on a bill to establish an independent office to monitor Alabama prisons.
Governor Kay Ivey provided $598,000 for intensive drug treatment programs at eight Alabama prisons to help inmates overcome addiction and reduce future crimes.
Legislators moved to grant state health officials enforcement power over prison sanitation after reports revealed one facility operated without hot water for several weeks.