SF 1242

3rd Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to corrections; clarifying and updating law governing MINNCOR
prison industries; adjusting the date for community corrections counties to
submit expenditure and cost statements; authorizing access by the Department
of Corrections to the Department of Employment and Economic Development
database relating to employment status information; amending Minnesota
Statutes 2006, sections 16A.72; 16B.181, subdivision 2; 16C.23, subdivision
2; 241.27, subdivisions 1, 2, 3, 4; 241.278; 268.19, subdivision 1; 401.15,
subdivision 1; repealing Minnesota Statutes 2006, sections 241.021, subdivision
5; 241.85, subdivision 2.

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

Section 1.

Minnesota Statutes 2006, section 16A.72, is amended to read:

16A.72 INCOME CREDITED TO GENERAL FUND; EXCEPTIONS.

All income, including fees or receipts of any nature, shall be credited to the general
fund, except:

(1) federal aid;

(2) contributions, or reimbursements received for any account of any division or
department for which an appropriation is made by law;

(3) income to the University of Minnesota;

(4) income to revolving funds now established in institutions under the control of the
commissioners of corrections or human services;

(5) investment earnings resulting from the master lease program, except that the
amount credited to another fund or account may not exceed the amount of the additional
expense incurred by that fund or account through participation in the master lease program;

(6) investment earnings resulting from any gift, donation, devise, endowment, trust,
or court ordered or approved escrow account or trust fund, which should be credited to the
fund or account and appropriated for the purpose for which it was received;

(7) receipts from the operation of patients' and inmates' stores and new text begin patients' new text end vending
machines, which shall be deposited in the social welfare fund new text begin , or in the case of prison
industries in the correctional revolving fund, new text end in each institution for the benefit of the
patients and inmates;

(8) deleted text begin money received in payment for services of inmate labor employed in the
industries carried on in the state correctional facilities which receipts shall be credited to
the current expense fund of those facilities deleted text end new text begin income to prison industries, which shall be
credited to the correctional industries revolving fund new text end ;

(9) as provided in sections 16B.57 and 85.22;

(10) income to the Minnesota Historical Society;

(11) the percent of income collected by a private collection agency and retained by
the collection agency as its collection fee; or

(12) as otherwise provided by law.

Sec. 2.

Minnesota Statutes 2006, section 16B.181, subdivision 2, is amended to read:

Subd. 2.

Public entities; purchases from corrections industries.

(a) The
commissioner of corrections, in consultation with the commissioner of administration,
shall prepare updated lists of the items available for purchase from Department of
Corrections industries and annually forward a copy of the most recent list to all public
entities within the state. A public entity that is supported in whole or in part with funds
from the state treasury may purchase items directly from corrections industries. The bid
solicitation process is not required for these purchases.

(b) The commissioner of administration shall develop a contract or contracts
to enable public entities to purchase items directly from corrections industries. deleted text begin The
commissioner of administration, in consultation with the commissioner of corrections,
shall determine the fair market price for listed items. deleted text end The commissioner of administration
shall require that all requests for bids or proposals, for items provided by corrections
industries, be forwarded to the commissioner of corrections to enable corrections industries
to submit bids. The commissioner of corrections shall consult with the commissioner of
administration prior to introducing new products to the state agency market.

(c) No public entity may evade the intent of this section by adopting slight variations
in specifications, when Minnesota corrections industry items meet the reasonable needs
and specifications of the public entity.

deleted text begin (d) The commissioners of administration and corrections shall develop annual
performance measures outlining goals to maximize inmate work program participation.
The commissioners of administration and corrections shall appoint cochairs for a task
force whose purpose is to determine additional methods to achieve the performance
goals for public entity purchasing. The task force shall include representatives from the
Minnesota House of Representatives, Minnesota Senate, the Minnesota State Colleges and
Universities, University of Minnesota, Minnesota League of Cities, Minnesota Association
of Counties, and administrators with purchasing responsibilities from the Minnesota state
Departments of Corrections, Public Safety, Finance, Transportation, Natural Resources,
Human Services, Health, and Employment and Economic Development. Notwithstanding
section 15.059, the task force created in this paragraph expires on June 30, 2003. deleted text end

deleted text begin (e) If performance goals for public entity purchasing are not achieved in two
consecutive fiscal years, public entities shall purchase items available from corrections
industries. The commissioner of administration shall be responsible for notifying public
entities of this requirement.
deleted text end

Sec. 3.

Minnesota Statutes 2006, section 16C.23, subdivision 2, is amended to read:

Subd. 2.

Surplus property.

"Surplus property" means state or federal commodities,
equipment, materials, supplies, books, printed matter, buildings, and other personal or real
property that is obsolete, unused, not needed for a public purpose, or ineffective for current
use. new text begin Surplus property does not include products manufactured by or held in inventory by
prison industries for sale to the general public in the normal course of its business.
new text end

Sec. 4.

Minnesota Statutes 2006, section 241.27, subdivision 1, is amended to read:

Subdivision 1.

Establishment of Minnesota correctional industries new text begin ; MINNCOR
industries new text end .

For the purpose of providing adequate, regular and suitable employment,
deleted text begin vocational deleted text end new text begin educational new text end training, and to aid the inmates of state correctional facilities,
the commissioner of corrections may establish, equip, maintain and operate at any
correctional facility under the commissioner's control such industrial and commercial
activities as may be deemed necessary and suitable to the profitable employment,
deleted text begin vocational deleted text end new text begin educational new text end training and development of proper work habits of the inmates of
state correctional facilities. The industrial and commercial activities authorized by this
section new text begin are designated MINNCOR industries and new text end shall be for the primary purpose of
new text begin sustaining and ensuring MINNCOR industries' self-sufficiency, new text end providing deleted text begin vocational deleted text end
new text begin educational new text end training, meaningful employment and the teaching of proper work habits to
the inmates of correctional facilities under the control of the commissioner of corrections,
and not new text begin solely new text end as competitive business ventures. new text begin The net profits from these activities shall
be used for the benefit of the inmates as it relates to education, self-sufficiency skills, and
transition services and not to fund non-inmate-related activities or mandates. new text end Prior to the
establishment of any industrial and commercial activity, the commissioner of corrections
may consult with representatives of business, industry, organized labor, the state
Department of Education, the state Apprenticeship Council, the state Department of Labor
and Industry, the Department of Employment Security, the Department of Administration,
and such other persons and bodies as the commissioner may feel are qualified to determine
the quantity and nature of the goods, wares, merchandise and services to be made or
provided, and the types of processes to be used in their manufacture, processing, repair,
and production consistent with the greatest opportunity for the reform and deleted text begin vocational deleted text end
new text begin educational new text end training of the inmates, and with the best interests of the state, business,
industry and labor.

The commissioner of corrections shall, at all times in the conduct of any industrial
or commercial activity authorized by this section, utilize inmate labor to the greatest
extent feasible, provided, however, that the commissioner may employ all administrative,
supervisory and other skilled workers necessary to the proper instruction of the inmates
and the profitable and efficient operation of the industrial and commercial activities
authorized by this section.

Additionally, the commissioner of corrections may authorize the director of any
correctional facility under the commissioner's control to accept work projects from outside
sources for processing, fabrication or repair, provided that preference shall be given to the
performance of such work projects for state departments and agencies.

Sec. 5.

Minnesota Statutes 2006, section 241.27, subdivision 2, is amended to read:

Subd. 2.

Revolving fund; use of fund.

There is established in the Department
of Corrections under the control of the commissioner of corrections the Minnesota
correctional industries revolving fund to which shall be transferred the revolving funds
authorized in Minnesota Statutes 1978, sections 243.41 and 243.85, clause (f), and any
other industrial revolving funds heretofore established at any state correctional facility
under the control of the commissioner of corrections. The revolving fund established
shall be used for the conduct of the industrial and commercial activities now or hereafter
established at any state correctional facility, including but not limited to the purchase of
equipment, raw materials, the payment of salaries, wages and other expenses necessary and
incident thereto. The purchase of new text begin services, new text end materials new text begin , new text end and commodities new text begin used in and held
new text end for resale are not subject to the competitive bidding procedures of section 16C.06, but are
subject to all other provisions of chapters 16B and 16C. When practical, purchases must be
made from small targeted group businesses designated under section 16C.16. Additionally,
the expenses of inmate deleted text begin vocational deleted text end new text begin educational new text end training new text begin , self-sufficiency skills, transition
services, new text end and the inmate release fund may be financed from the correctional industries
revolving fund in an amount to be determined by the commissioner new text begin or the MINNCOR
chief executive officer as duly appointed by the commissioner new text end . The proceeds and income
from all industrial and commercial activities conducted at state correctional facilities
shall be deposited in the correctional industries revolving fund subject to disbursement
as hereinabove provided. The commissioner of corrections may request that money in
the fund be invested pursuant to section 11A.25; the proceeds from the investment not
currently needed shall be accounted for separately and credited to the fund.

Sec. 6.

Minnesota Statutes 2006, section 241.27, subdivision 3, is amended to read:

Subd. 3.

Disbursement from fund.

The correctional industries revolving fund
shall be deposited in the state treasury and paid out only on proper vouchers as may be
authorized and approved by the commissioner of corrections, and in the same manner and
under the same restrictions as are now provided by law for the disbursement of funds by
the commissioner. new text begin An amount deposited in the state treasury equal to six months of net
operating cash as determined by the prior 12 months of revenue and cash flow statements,
shall be restricted for use only by correctional industries as described under subdivision
2. For purposes of this subdivision, "net operating cash" means net income minus sales
plus cost of goods sold. Cost of goods sold include all direct costs of correctional industry
products attributable to their production. new text end The commissioner of corrections is authorized
to keep and maintain at any correctional facility under the commissioner's control a
contingent fund, as provided in section 241.13; but the contingent fund shall at all times
be covered and protected by a proper and sufficient bond to be duly approved as by law
now provided.

Sec. 7.

Minnesota Statutes 2006, section 241.27, subdivision 4, is amended to read:

Subd. 4.

Revolving fund; borrowing.

The commissioner of corrections is
authorized, when in the commissioner's judgment it becomes necessary in order to meet
current demands on the correctional industries revolving fund, to borrow sums of money
as may be necessary. The sums so borrowed shall not exceed, in any one year, deleted text begin 50 percent
of the total of the net worth of correctional industries deleted text end new text begin six months of net operating cash as
determined by the previous 12 months of the correctional industries' revenue and cash
flow statements new text end .

When the commissioner of corrections shall certify to the commissioner of finance
that, in the commissioner's judgment, it is necessary to borrow a specified sum of money
in order to meet the current demands on the correctional industries revolving fund, and the
commissioner of finance may, in the commissioner's discretion, transfer and credit to the
correctional industries revolving fund, from any moneys in the state treasury not required
for immediate disbursement, the whole or such part of the amount so certified as they
deem advisable, which sum so transferred shall be repaid by the commissioner from the
revolving fund to the fund from which transferred, at such time as shall be specified by the
commissioner of finance, together with interest thereon at such rate as shall be specified
by the commissioner of finance, not exceeding four percent per annum. When any transfer
shall so have been made to the correctional industries revolving fund, the commissioner
of finance shall notify the commissioner of corrections of the amount so transferred to
the credit of the correctional industries revolving fund, the date when the same is to be
repaid, and the rate of interest so to be paid.

Sec. 8.

Minnesota Statutes 2006, section 241.278, is amended to read:

241.278 AGREEMENTS FOR WORK FORCE OF STATE OR COUNTY
JAIL INMATES.

The commissioner of corrections, in the interest of inmate rehabilitation new text begin or to
promote programs under section 241.275, subdivision 2 new text end , may enter into interagency
agreements with state, county, or municipal agencies, or contract with nonprofit agencies
to new text begin manage, new text end fund new text begin , new text end or partially fund the cost of programs that use state or county jail
inmates as a work force. The commissioner is authorized to receive funds via these
agreements and these funds are appropriated to the commissioner for community service
programming new text begin or when prison industries are party to the agreement, shall be deposited in
the Minnesota correctional industries revolving fund for use as described under section
241.27, subdivision 2 new text end .

Sec. 9.

Minnesota Statutes 2006, section 268.19, subdivision 1, is amended to read:

Subdivision 1.

Use of data.

(a) Except as otherwise provided by this section, data
gathered from any person pursuant to the administration of the Minnesota Unemployment
Insurance Law are private data on individuals or nonpublic data not on individuals as
defined in section 13.02, subdivisions 9 and 12, and may not be disclosed except pursuant
to a district court order or section 13.05. A subpoena shall not be considered a district
court order. These data may be disseminated to and used by the following agencies
without the consent of the subject of the data:

(1) state and federal agencies specifically authorized access to the data by state
or federal law;

(2) any agency of any other state or any federal agency charged with the
administration of an unemployment insurance program;

(3) any agency responsible for the maintenance of a system of public employment
offices for the purpose of assisting individuals in obtaining employment;

(4) human rights agencies within Minnesota that have enforcement powers;

(5) the Department of Revenue only to the extent necessary for its duties under
Minnesota laws;

(6) public and private agencies responsible for administering publicly financed
assistance programs for the purpose of monitoring the eligibility of the program's
recipients;

(7) the Department of Labor and Industry and the Division of Insurance Fraud
Prevention in the Department of Commerce on an interchangeable basis with the
department for uses consistent with the administration of their duties under Minnesota law;

(8) local and state welfare agencies for monitoring the eligibility of the data subject
for assistance programs, or for any employment or training program administered by those
agencies, whether alone, in combination with another welfare agency, or in conjunction
with the department or to monitor and evaluate the statewide Minnesota family investment
program by providing data on recipients and former recipients of food stamps or food
support, cash assistance under chapter 256, 256D, 256J, or 256K, child care assistance
under chapter 119B, or medical programs under chapter 256B, 256D, or 256L;

(9) local and state welfare agencies for the purpose of identifying employment,
wages, and other information to assist in the collection of an overpayment debt in an
assistance program;

(10) local, state, and federal law enforcement agencies for the sole purpose of
ascertaining the last known address and employment location of a person who is the
subject of a criminal investigation;

(11) the federal Immigration and Naturalization Service shall have access to data on
specific individuals and specific employers provided the specific individual or specific
employer is the subject of an investigation by that agency; deleted text begin and
deleted text end

(12) the Department of Health solely for the purposes of epidemiologic
investigations new text begin ; and
new text end

new text begin (13) the Department of Corrections for the purpose of postconfinement employment
tracking new text end .

(b) Data on individuals and employers that are collected, maintained, or used by the
department in an investigation pursuant to section 268.182 are confidential as to data on
individuals and protected nonpublic data not on individuals as defined in section 13.02,
subdivisions 3 and 13, and must not be disclosed except pursuant to statute or district
court order or to a party named in a criminal proceeding, administrative or judicial, for
preparation of a defense.

(c) Data gathered by the department pursuant to the administration of the Minnesota
unemployment insurance program must not be made the subject or the basis for any
suit in any civil proceedings, administrative or judicial, unless the action is initiated by
the department.

Sec. 10.

Minnesota Statutes 2006, section 401.15, subdivision 1, is amended to read:

Subdivision 1.

Certified statements; determinations; adjustments.

deleted text begin On or before deleted text end new text begin
Within 60 days of new text end the end of each calendar quarter, participating counties which have
received the payments authorized by section 401.14 shall submit to the commissioner
certified statements detailing the amounts expended and costs incurred in furnishing the
correctional services provided in sections 401.01 to 401.16. Upon receipt of certified
statements, the commissioner shall, in the manner provided in sections 401.10 and
401.12, determine the amount each participating county is entitled to receive, making any
adjustments necessary to rectify any disparity between the amounts received pursuant to
the estimate provided in section 401.14 and the amounts actually expended. If the amount
received pursuant to the estimate is greater than the amount actually expended during the
quarter, the commissioner may withhold the difference from any subsequent monthly
payments made pursuant to section 401.14. Upon certification by the commissioner of
the amount a participating county is entitled to receive under the provisions of section
401.14 or of this subdivision the commissioner of finance shall thereupon issue a state
warrant to the chief fiscal officer of each participating county for the amount due together
with a copy of the certificate prepared by the commissioner.

Sec. 11. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, sections 241.021, subdivision 5; and 241.85, subdivision
2, new text end new text begin are repealed.
new text end