HF 4139

02/25/26   REVISOR  VH/EI  26-06942
This Document can be made available
in alternative formats upon request  State of Minnesota
  HOUSE OF REPRESENTATIVES
  NINETY-FOURTH SESSION
  H. F. No.   4139
03/09/2026     Authored by Novotny and Hudson
  The bill was read for the first time and referred to the Committee on Public Safety Finance and Policy
1.1A bill for an act
1.2relating to corrections; clarifying benefits for community corrections employees;
1.3requiring a report; appropriating money; amending Minnesota Statutes 2024,
1.4section 401.04.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6Section 1. Minnesota Statutes 2024, section 401.04, is amended to read:
1.7401.04 ACQUIRING PROPERTY; SELECTING ADMINISTRATIVE
1.8STRUCTURE; EMPLOYEES.
1.9Subdivision 1. County and Tribal Nation authority. Any county or Tribal Nation
1.10electing to become a CCA jurisdiction may:
1.11(1) acquire by any lawful means, including purchase, lease, or transfer of custodial
1.12control, the lands, buildings, and equipment necessary and incident to accomplishing the
1.13purposes of this chapter;
1.14(2) determine and establish an administrative structure best suited to the efficient
1.15administration and delivery of correctional services; and
1.16(3) employ a director and other officers, employees, and agents as deemed necessary to
1.17implement this chapter.; and
1.18(4) file, with the commissioner of corrections, a resolution adopted by the county board.
1.19The resolution must state the county's intent to assume jurisdiction under this chapter and
1.20must specify the effective date of the transition. The transition is effective on the date stated
1.21in the resolution, unless subsequently amended by a county.
Section 1.  1
02/25/26   REVISOR  VH/EI  26-06942
2.1      Subd. 2. Providing for displaced employees. (a) To the extent that a county assumes
2.2  and takes over state and local correctional services presently provided in the county, the
2.3  probation officers and other employees displaced by the changeover must be employed by
2.4  the county at no loss of salary. Years of service in the state are to be given full credit for
2.5  future sick leave and vacation accrual purposes.
2.6      (b) If an officer or other employee is hired by a county, employment must, to the extent
2.7  possible and notwithstanding any other law to the contrary, be deemed a transfer in grade
2.8  with all of the benefits enjoyed by the officer or employee for purposes of job classification
2.9  and rate of pay while in the service of the state or local correctional service.
2.10     (c) State or local employees displaced by county participation in the subsidy program
2.11 are on layoff status and, if not hired by a participating county as provided under this
2.12 subdivision, may exercise their rights under layoff procedures established by law or
2.13 collective-bargaining agreement, whichever is applicable.
2.14     (d) State or local officers and employees displaced by a county's participation in the
2.15 Community Corrections Act and hired by the participating county retain all fringe benefits
2.16 and recall from layoff benefits accrued by seniority and enjoyed by them while in the service
2.17 of the state.
2.18     (e) The state is responsible for payment of any accrued or earned benefits established
2.19 under a collective bargaining agreement that were accumulated during state employment
2.20 before a county assumed jurisdiction under this chapter. A county that assumes jurisdiction
2.21 under this chapter is not liable for the accrued or earned benefits accumulated under state
2.22 employment and is not required to recognize, credit, or transfer accrued or earned benefits
2.23 accumulated while in service to the state.
2.24     (f) A county is responsible for payment of any accrued or earned benefits established
2.25 under a collective bargaining agreement that were accumulated during county employment
2.26 before the state assumed jurisdiction under this chapter. When the state assumes jurisdiction
2.27 under this chapter, the state is not liable for the accrued or earned benefits accumulated
2.28 under county employment and is not required to recognize, credit, or transfer the accrued
2.29 or earned benefits accumulated while in service to the county.
2.30     (e) (g) This subdivision applies to the extent consistent with state and Tribal law.
Section 1.  2
02/25/26   REVISOR  VH/EI  26-06942
3.1    Sec. 2. APPROPRIATION; REIMBURSEMENT FOR TRANSITIONED COUNTIES.
3.2      Subdivision 1. Appropriation. $150,000 in fiscal year 2027 is appropriated from the
3.3  general fund to the commissioner of revenue for distributions to counties that have
3.4  transitioned to a Community Corrections Act (CCA) jurisdiction on or after August 1, 2023.
3.5      Subd. 2. Purpose. Distribution money must be used to reimburse eligible counties for
3.6  fringe benefit costs paid by the county that are attributable to state collective bargaining
3.7  agreements, including but not limited to accrued vacation, sick leave, severance, or other
3.8  benefits earned under state employment before the county transitioned to a CCA jurisdiction.
3.9      Subd. 3. Application and award. (a) A county seeking reimbursement under this section
3.10 must submit a request to the commissioner of revenue in the form and manner prescribed
3.11 by the commissioner.
3.12     (b) The request must include documentation of the fringe benefit costs incurred as a
3.13 result of the county's transition to a CCA jurisdiction.
3.14     (c) The commissioner must review applications and must award distributions to reimburse
3.15 verified eligible costs, subject to the availability of appropriated money.
3.16     Subd. 4. Report. By January 15, 2028, the commissioner of revenue must report to the
3.17 chairs and ranking minority members of the legislative committees with jurisdiction over
3.18 corrections policy and finance on the awards made under this section, including the counties
3.19 that received money and the total amounts reimbursed.
Sec. 2.  3