HF4139

Purpose

• Clarify how counties and Tribal Nations can take over correctional services under the Community Corrections Act (CCA) framework.
• Explain how benefits for community corrections employees are handled during and after a transition.
• Create an appropriation process to reimburse counties for certain costs tied to the transition.
• Update Minnesota law to reflect these changes and provide oversight and reporting.

Key provisions (what the bill would do)

• Section 1: Amends Minnesota Statutes to authorize counties or Tribal Nations that choose to become a CCA jurisdiction to:

  • Acquire land, buildings, and equipment as needed to run correctional services.
  • Determine and establish an administrative structure best suited for delivering correctional services.
  • Hire a director and other staff as needed to run the program.
  • File a transition-resolution with the commissioner of corrections stating the county’s intent to assume jurisdiction and the transition date.

• Subdivision 2: Providing for displaced employees

  • When a county takes over state or local correctional services, probation officers and other employees displaced by the changeover must be employed by the county with no loss of salary.
  • Years of state service should be fully credited for future sick leave and vacation accruals.
  • If a displaced employee is hired by the county, they should be treated as a transfer in grade with the same benefits they had as a state or local employee.
  • Displaced state or local employees who are not hired by the county may be laid off under applicable layoff procedures.
  • Displaced employees who join the county and who remain in correctional work keep fringe benefits and recall rights accumulated by seniority.
  • The state is responsible for paying accrued or earned benefits under state collective bargaining agreements that were accumulated before the transition to a CCA jurisdiction.
  • The county is responsible for accrued or earned benefits accumulated during county employment before the transition; the state is not liable for those post-transition benefits, and this division of responsibility follows state and Tribal law where applicable.

• Section 2: Appropriation reimbursement for transitioned counties

  • Subdivision 1: An appropriation of $150,000 in fiscal year 2027 from the general fund to the commissioner of revenue to distribute to counties that transitioned to a CCA jurisdiction on or after August 1, 2023.
  • Subdivision 2: Purpose of distributions — to reimburse eligible counties for fringe benefit costs caused by state collective bargaining agreements, including accrued vacation, sick leave, severance, or other benefits earned before the county-transition.
  • Subdivision 3: Application and award — counties must apply with documentation of the fringe benefit costs; the commissioner reviews applications and awards reimbursements as funds allow.
  • Subdivision 4: Report — by January 15, 2028 the commissioner of revenue must report to the chairs and ranking minority members of the legislative committees with jurisdiction over corrections policy and finance, detailing which counties received funds and the total amounts reimbursed.

Significant changes to existing law

• Expands authority for counties and Tribal Nations to become CCA jurisdictions, including power to acquire property and set up an administrative structure for correctional services.
• Sets explicit procedures for transitioning employees from state/local correctional roles to county employment, including transfer in grade, credit for prior service, and continued eligibility for fringe benefits and recall rights.
• Creates a formal framework to allocate and reimburse transition costs, specifically fringe benefits tied to state collective bargaining agreements, through a dedicated appropriation.
• Adds requirements for reporting on transition reimbursements to legislative oversight bodies.

Practical implications

• Employees: Displaced correctional staff may move from state/local roles to county roles with salary protection, continued benefits, and recognized prior service. If not hired by the county, they retain rights under layoff procedures.
• Counties and Tribes: Gaining jurisdictions must plan for property acquisition, organizational structure, and staffing to run correctional services under the CCA.
• State and Benefits: Clear division of responsibility for accrued or earned benefits—state covers benefits earned before transition; county covers those earned during county employment.
• Funding and Oversight: A targeted appropriation is created to help with transition costs, and a formal reporting requirement is established to keep the legislature informed.

Implementation timeline and oversight

• Counties/Tribes must file a transition resolution with the commissioner of corrections to begin the process.
• The state (via the commissioner of revenue) will distribute reimbursement funds in line with approved applications for eligible counties.
• A formal report outlining reimbursements and recipients is due by January 15, 2028.

Relevant Terms - Community Corrections Act (CCA) - county jurisdiction - Tribal Nation - administrative structure - transition date - displaced employees - probation officers - transfer in grade - fringe benefits - sick leave - vacation accrual - recall from layoff - layoff procedures - collective bargaining agreement - accrued benefits - severance - general fund appropriation - appropriation to the commissioner of revenue - transition costs - reimbursement - applications and awards - reporting to legislative committees - corrections policy and finance