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HF 4139

Community corrections employee benefits clarified, report required, and money appropriated.

2025-2026 Regular Session Introduced by Walter Hudson and 1 co-sponsor

Provides a $150,000 fund to reimburse transitioning counties for fringe-benefit costs of displaced state corrections employees during CCA transitions.

Introduction and first reading, referred to Public Safety Finance and Policy
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Bill Summary · HF 4139

Summary of HF 4139 (2025-2026) – Minnesota

Purpose and intent

HF 4139 aims to clarify benefits for community corrections employees as counties transition to a Community Corrections Act (CCA) jurisdiction, ensure a smooth transition for displaced employees, and provide a targeted appropriation to reimburse transition-related fringe benefits. The bill adds requirements for benefits treatment during and after transition, and creates a modest general-fund appropriation to support transitioning counties.

Key provisions

Section 1: Amendments to Minnesota Statutes 2024, section 401.04 (Acquiring property; administrative structure; employees)

  • Allows counties or Tribal Nations electing to become a CCA jurisdiction to:

    • Acquire lands, buildings, and equipment as needed.
    • Establish an administrative structure for correctional services.
    • Employ a director and other necessary staff.
    • File a transition-resolution with the commissioner of corrections stating intent and specifying the transition date (effective as stated, unless amended).

  • Provision for displaced employees (Subd. 2):

    • If a county assumes state/local correctional services, probation officers and other employees displaced must be employed by the county at no loss of salary.
    • Years of service with the state credited for future sick leave and vacation accrual.
    • New language clarifies transfer in job classification and pay rate when an employee is hired by the county (to the extent possible).
    • Diverts displaced state/local employees to layoff status if not hired by the participating county, with rights under layoff procedures.

  • Fringe benefits and recall:

    • State employees displaced by county transition retain fringe benefits and recall rights accrued in state employment.
    • Counties are responsible for paying accrued/earned benefits under a collective bargaining agreement that were accumulated during county employment prior to transition.
    • The state is not liable for accrued/earned benefits accumulated while in state employment after transition, and the county is not required to transfer those benefits to state employment.

  • Additional note: The new provisions apply to transitions consistent with state and Tribal law.

Section 2: NEW – Appropriation and Reimbursement for Transitioned Counties

  • Subd. 1: Appropriation

    • $150,000 in FY 2027 from the general fund to the Commissioner of Revenue for distributions to counties that transitioned to CCA jurisdiction on or after August 1, 2023.

  • Subd. 2: Purpose

    • Funds are to reimburse eligible counties for fringe benefit costs paid due to transition, specifically costs attributable to state collective bargaining agreements (e.g., accrued vacation, sick leave, severance, etc.) earned before transition.

  • Subd. 3: Application and Award

    • Counties must apply to the Commissioner of Revenue in a prescribed form.
    • Applications must include documentation of incurred fringe benefit costs due to transition.
    • The Commissioner will review and award distributions to reimburse verified eligible costs, subject to available funds.

  • Subd. 4: Report

    • By January 15, 2028, the Commissioner must report to relevant legislative chairs and ranking minority members on awards, including which counties received money and total amounts reimbursed.

Affected parties

  • Counties and Tribal Nations that transition to a CCA jurisdiction (on or after Aug 1, 2023).
  • Displaced state/local correctional employees (probation officers and others) and their fringe-benefit accruals.
  • State and local governments entering into or administering CCA arrangements.
  • Minnesota Department of Revenue (administrating the new reimbursement program).

Procedural and timeline aspects

  • Transition resolutions must be filed with the Commissioner of Corrections, specifying transition dates.
  • FY 2027 appropriation of $150,000 to reimburse transition fringe benefits; awards determined via submitted applications.
  • A report on reimbursements due by January 15, 2028.

Potential impact

  • Provides clearer rules for employee benefits during county-led corrections transitions.
  • Helps protect and recognize service credit and benefits for displaced employees.
  • Establishes a dedicated funding mechanism to offset fringe-benefit costs incurred by transitioning counties.
  • Improves transparency through a published 2028 report detailing allocations.

Compiled from official sources — confirm details with the bill’s official record.

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