241.27 VOCATIONAL TRAINING OF INMATES; MINNESOTA CORRECTIONAL
INDUSTRIES; REVOLVING ACCOUNTS.
Subdivision 1. Establishment of Minnesota correctional industries; MINNCOR
For the purpose of providing adequate, regular and suitable employment, educational
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, educational training and development of proper work habits of the
inmates of state correctional facilities. The industrial and commercial activities authorized by this
section are designated MINNCOR industries and shall be for the primary purpose of sustaining
and ensuring MINNCOR industries' self-sufficiency, providing educational 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 solely as competitive business ventures.
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. 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 educational 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.
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
, 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 services, materials, and commodities used in and
held for resale are not subject to the competitive bidding procedures of section
, 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
. Additionally, the
expenses of inmate educational training, self-sufficiency skills, transition services, and the inmate
release fund may be financed from the correctional industries revolving fund in an amount to be
determined by the commissioner or the MINNCOR chief executive officer as duly appointed
by the commissioner. 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
; the proceeds from the
investment not currently needed shall be accounted for separately and credited to the fund.
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. 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. 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
; 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.
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, six months of net operating cash as determined by
the previous 12 months of the correctional industries' revenue and cash flow statements.
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.
Subd. 5. Federal grant fund transfers.
Grants received from the federal government for any
vocational training program or for administration under the jurisdiction of the commissioner of
corrections shall, in the first instance, be credited to a federal grant fund and shall be transferred
therefrom to the credit of the commissioner of corrections in the appropriate account upon
certification of the commissioner of corrections that the amounts so requested to be transferred
have been earned or are required for the purposes and program intended. Moneys received by the
federal grant fund need not be budgeted as such provided transfers from the fund are budgeted for
allotment purposes in the appropriate appropriation.
History: 1967 c 883 s 1; Ex1967 c 1 s 6; 1975 c 271 s 6; 1976 c 163 s 39; 1979 c 129 s 2;
1980 c 417 s 2; 1Sp1981 c 4 art 1 s 101; 1986 c 444; 1987 c 156 s 1; 1987 c 384 art 2 s 1; 1989 c
352 s 18; 1990 c 541 s 25; 1Sp1995 c 3 art 16 s 13; 1998 c 386 art 2 s 72; 2003 c 112 art 2 s
50; 2003 c 130 s 12; 2007 c 54 art 6 s 6-9