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    Subdivision 1. Lease correctional buildings. Notwithstanding the provisions of any law to
the contrary, the commissioner of administration, with the approval of the governor, may lease
one or more buildings or portions thereof on the grounds of any state adult correctional institution,
together with the real estate needed for reasonable access to and egress from the leased buildings,
for a term not to exceed 20 years, to a private corporation for the purpose of establishing and
operating a factory for the manufacture and processing of goods, wares or merchandise, or any
other business or commercial enterprise deemed by the commissioner of corrections to be
consistent with the proper training and rehabilitation of inmates.
    Subd. 2. Private industry employment. Any corporation operating a factory or other
business or commercial enterprise under this section may employ selected inmates of the
correctional institution upon whose grounds it operates and persons conditionally released subject
to the provisions of section 241.26. Persons conditionally released as provided in this subdivision
shall be deemed to be parolees within the purview of United States Code, title 49, section 60.
Except as prohibited by applicable provisions of the United States Code, inmates of state
correctional institutions may be employed in the manufacture and processing of goods, wares
and merchandise for introduction into interstate commerce, provided that they are paid no less
than the prevailing minimum wages for work of a similar nature performed by employees with
similar skills in the locality in which the work is being performed.
Under rules prescribed by the commissioner of corrections a portion of the wages of each
inmate employed as authorized by this subdivision, in an amount to be determined by the
commissioner, shall be set aside and kept by the chief executive officer of the facility in the
public welfare fund of the state for the benefit of the inmate and for the purpose of assisting
the inmate when leaving the facility on conditional release or by final discharge. Any portion
remaining undisbursed at the time of the inmate's final discharge shall be given to the inmate
upon final discharge.
    Subd. 3. Private enterprise. Any factory established under the provisions of this section
shall be deemed a private enterprise and subject to all the laws and rules of this state governing
the operation of similar business enterprises elsewhere in this state.
    Subd. 4. Authority not diminished. The authority of the commissioner of corrections over
the institutions of the Department of Corrections and the inmates thereof shall not be diminished
by this section.
    Subd. 5. Deductions. Notwithstanding any other law to the contrary, any compensation
paid to inmates under this section is subject to section 243.23, subdivisions 2 and 3, and rules
of the commissioner of corrections.
History: 1973 c 145 s 1; 1975 c 304 s 6,7; 1976 c 2 s 82; 1980 c 417 s 4; 1985 c 248 s 70;
1986 c 444; 1995 c 226 art 5 s 5

Official Publication of the State of Minnesota
Revisor of Statutes