HF 4031

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/18/2026 01:06 p.m.

A bill for an act
relating to corrections; modifying the Minnesota correctional industries program;
amending Minnesota Statutes 2024, section 241.27, subdivisions 6, 7, by adding
subdivisions.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 241.27, is amended by adding a subdivision
to read:

new text begin Subd. 1b. new text end

new text begin Definition. new text end

new text begin "Private business" means all entities organized under the laws of
this state or a foreign jurisdiction, but does not include governmental units.
new text end

Sec. 2.

Minnesota Statutes 2024, section 241.27, subdivision 6, is amended to read:

Subd. 6.

Reports and financial statements.

new text begin (a) new text end MINNCOR shall include its full costs
for inmate wages and the money it receives from the department for inmate confinement
costs in its annual financial statements and reports. In addition, MINNCOR shall disclose
in its annual report new text begin :
new text end

new text begin (1) new text end how the money it receives from the department for inmate confinement costs affects
its profitability new text begin ; and
new text end

new text begin (2) a calculation of the profitability of each contract MINNCOR has with private
businesses consistent with the requirements set forth in subdivision 7, paragraph (a) new text end .

new text begin (b) MINNCOR must post on the agency's public-facing website the Prison Industry
Enhancement Certification Program wage for each region of the state where MINNCOR is
contracting with a private business.
new text end

Sec. 3.

Minnesota Statutes 2024, section 241.27, subdivision 7, is amended to read:

Subd. 7.

Interactions with private businesses.

new text begin (a) MINNCOR must participate in the
United States Bureau of Justice Assistance's Prison Industry Enhancement Certification
Program (PIECP). When implementing the PIECP, MINNCOR must:
new text end

new text begin (1) calculate the PIECP wage which is the prevailing wage rate for each region of the
state where MINNCOR is contracting with a private business based on the Department of
Employment and Economic Development's wage survey and set the rate at the 50th percentile
for each region;
new text end

new text begin (2) separately track wages paid to inmates at either the PIECP wage or the non-PIECP
wage which is a wage rate that is exempt from the PIECP's prevailing wage requirement;
new text end

new text begin (3) not use a blended wage rate that combines PIECP wages and non-PIECP wages when
assessing and evaluating contract costs, profitability, and potential partnerships with private
businesses; and
new text end

new text begin (4) classify and document each inmate's MINNCOR position as either a PIECP wage
position or a non-PIECP wage position.
new text end

new text begin (b) MINNCOR must not subsidize private businesses, including but not limited to using
the costs of confinement to offset contract costs, to manipulate a contract's profitability
calculation, or to otherwise reduce a private business' operating expenses.
new text end

new text begin (c) MINNCOR must account for all labor, manufacturing, general, and administrative
costs when establishing standard contract rates.
new text end

new text begin (d) MINNCOR must recapture the fair market value for use of Department of Corrections
floor space and storage that is dedicated to a private business.
new text end

new text begin (e) When entering into a contract and calculating labor costs, MINNCOR must use the
prevailing wage rate for the industry in which the inmates are working as determined by
the Department of Employment and Economic Development.
new text end

new text begin (f) MINNCOR must not enter a contract with a private business if inmate labor will
provide more than 70 percent of the business' full-time equivalent employee head count.
new text end

deleted text begin (a) deleted text end new text begin (g) new text end MINNCOR shall use revenue contracts or purchase orders on forms approved
by the Department of Administration whenever it allows private businesses to use inmate
labor. MINNCOR shall determine whether to use a revenue contract or a purchase order
according to criteria that the Department of Corrections has approved having taken into
account the recommendations of the legislative auditor contained in its 2009 report on
MINNCOR.

deleted text begin (b) deleted text end new text begin (h) new text end MINNCOR shall develop a uniform method to report sales and expenditure data
related to individual labor arrangements with private businesses. MINNCOR shall review
the data annually to assess how the arrangements, both individually and collectively, affect
MINNCOR achieving its goals of high inmate participation in industry and profitability.

Sec. 4.

Minnesota Statutes 2024, section 241.27, is amended by adding a subdivision to
read:

new text begin Subd. 9. new text end

new text begin Displacement of private sector workers; verification. new text end

new text begin The commissioner of
employment and economic development must verify that each contract MINNCOR enters
will not result in the displacement of employed private sector workers in the geographic
region in which MINNCOR facilities are located and the geographic region where the private
business is located.
new text end