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Policy:                         300.100

Title:                           Offender/Resident Accounts

Effective Date:           7/17/18

 

PURPOSE:    To provide for managing offenders’/residents’ funds held by the department.  Funds are deposited in the social welfare fund and managed in accordance with generally accepted accounting principles (GAAP).

 

APPLICABILITY:  All correctional facilities and programs

 

DEFINITIONS:

Bridge program – a pre-employment training and education program run by MINNCOR for selected adult offenders to assist in their successful transition back into the community and to provide private employment through the state work release program.

 

Cost of confinement surcharge – the 10% surcharge deducted from incoming offender receipts to be spent on facility law library and offender personal support costs.

 

Cost of confinement compensation deduction – the deduction from MINNCOR-PIECP compensation paid.

 

Court-ordered dependent support – court-ordered support of families and dependent relatives, including child support, spousal maintenance, and the reimbursement of public assistance provided to the dependent family and relatives.

 

Court-ordered fines – includes court-ordered fines, surcharges, fees, and penalty assessments.

 

Court-ordered obligations – includes court-ordered dependent support, restitution, fines, and other fees ordered by a court.

 

Court-ordered restitution – a dollar amount ordered by the court in a criminal proceeding to be paid by the offender/resident to compensate for the victim's losses.

 

Crime victim's reparation board contribution – offender payment to the State Crime Victim's Account established by the Crime Victim's Reparation Act (see Policy 300.110, "Offender Aid to Victims of Crime").

 

Disciplinary restitution – an amount ordered by a discipline hearing officer, or agreed to by an offender/resident through waiver.

 

Facility obligation – an offender/resident obligation to the facility or department, including such examples as: postage and shipping costs, state issue replacement (including clothing, key/locks, identification (ID) cards, library materials, etc.), offender banking charges (not sufficient funds (NSF) checks, stale-dated checks, bank receipt returns, etc.), overpayment of compensation, etc.

 

Income contract – a contract under which offenders are placed that dictates the deductions to which the offender is subject.

 

Interstate Corrections Compact (ICC) – a correctional contract by which offenders are exchanged with other states.  ICC offenders are subject to the policies and procedures of the Minnesota DOC.

 

Interstate program – a component of the department's industry program in which adult offenders produce items to be sold to non-government customers outside of Minnesota.

 

Medical co-payment – a flat dollar amount charged to an offender/resident for a chargeable health services contact.

 

Net wages – the amount of wages after taxes, court-ordered child support, and dependent support payments have been deducted (applicable to outside employer paid wages).

 

Personal property – all property other than money belonging to an offender/resident.

 

Records retention period – the period of time that records must be retained for audit purposes.  Offender accounts/offender payroll retention period is the current year plus four.

 

Restitution surcharge – non-refundable money collected on offender/resident receipts and disbursements for payment towards an offender’s court-ordered restitution and fine obligation(s).

 

Restorative Justice Program – a DOC-sanctioned program that may include offender fundraising activities coordinated by DOC staff.

 

Room and board – costs charged to offenders/residents in work release and bridge programs for room and board.

 

Special purpose accounts – depository accounts for reimbursing related expenditures, such as shipping/postage charges and replacement of identification cards.  Except for sanctioned restorative justice activities, special purpose accounts may not be used as holding accounts in support of offender group activities.  Balances are reviewed periodically to identify amounts that are in excess of anticipated expenditures.

 

Trust fund benefit account – an account that receives excess interest not paid to offenders/residents, unclaimed offender/resident funds that have been held for six months, offender photo ticket financial activity, and contraband funds.  Funds in this account are used as directed by the department.  The fund balance is reviewed periodically to identify amounts in excess of anticipated expenditures.

 

Unified pay plan – the department's general compensation plan for adult offenders.

 

PROCEDURES: 

300.1001: Account Management

A.        Trust Financial System

All offender/resident social welfare funds are recorded in the automated trust financial system.  Offender/resident financial information is private and is subject to Policy 106.210, “Providing Access to and Protecting Government Data.”  Department employees may access offender/resident financial information only to the extent required to perform their job duties.

 

B.        Accounts

Individual offender/resident accounts in the trust financial system may consist of the following sub-accounts: spending, gate savings, voluntary savings, deposits, claim fee deposits, hold, and room and board.  In addition, debts or obligations are maintained for each offender/resident.

1.         Spending

The depository account for compensation and incoming funds, as well as the account used for purchases including canteen, phone time, and withdrawal requests.

 

2.         Gate Savings/Voluntary Savings

a)         Adult offenders who are required to save gate money must save $100 in gate money before funds can be transferred to the voluntary savings sub-account or before sending funds to an outside bank account.

 

b)         Juvenile residents are required to maintain a balance of $100 in their spending accounts before sending funds to an outside bank account.

 

c)         Offenders/residents are responsible for arranging for bank transactions by mail with outside financial institutions.  Offenders/residents may not possess personal checks, withdrawal slips, or debit cards while incarcerated.

 

3.         Offenders/residents may request to transfer funds between their spending and voluntary savings sub-accounts by completing a withdrawal request.  Requests for less than $10 are not processed.

 

C.        Cash and other fund instruments are removed from offenders/residents upon intake and deposited to the offender’s/resident’s account.  Offenders/residents are not allowed to possess cash except in facilities that allow coin for vending purchases.  These facilities must establish guidelines which include the maximum amount allowed.

 

D.        Adult offenders admitted with new sentences to the DOC receive a $15 advance.  This becomes an obligation which must be paid back to the facility.

 

E.         Interest 

1.         The state investment board invests offender/resident social welfare funds in accordance with Policy 104.180, “Investments.”  The state treasurer pays interest monthly with interest being deposited in the facility’s trust fund benefit account.

 

2.         Interest is distributed to offender/resident spending accounts from the trust fund benefit account on a quarterly basis based on the average of the offender’s/resident’s beginning and ending savings and gate savings balances.  The rate of interest paid is calculated by financial services bases on the amount paid by the state treasurer.

 

3.         Special purpose accounts do not receive interest earnings.

 

F.         Incoming Funds

Incoming funds are all funds received by an offender/resident from any source, excluding compensation earned while under DOC jurisdiction.

1.         Offenders/residents may not receive or obtain money from any source other than as permitted in this policy.  They may not receive money from or send money to:

a)         Another incarcerated offender/resident; or

b)         Non-incarcerated offenders/residents still on paper supervision; or

c)         Patients in other secure treatment facilities in Minnesota.

 

2.         Money orders and offender/resident deposits from outside financial institutions must be addressed to the contract vendor at the following address:

                         

JPAY

P.O. Box 246450

Pembrook Pines, FL  33024

 

3.         Money orders must be made payable to the approved contracted vendor and must include a completed money order deposit form.  The offender/resident name and identification number must be clearly written on the money order and the deposit form.  The sender's full name and complete, verifiable address must also be included on the money order deposit form as well as on the envelope.  All information must be written in a legible manner.

 

4.         Electronic funds transfers are accepted for offenders/residents through the approved contracted vendor.  Additional information on how to send money is available on the DOC public website, mn.gov/doc.

 

5.         All acceptable funds coming into the department are deposited to the offender's/resident’s spending account within five business days of receipt.  Receipts are provided to offenders/residents.

 

6.         At the finance director's discretion, funds may be unavailable for up to ten business days.  Financial services staff must notify offenders/residents of any funds being held unless the deposit is the subject of an investigation.

 

7.         Funds that cannot be deposited to the offender's/resident’s spending account are processed as follows:

a)         Funds sent directly to the DOC are returned to the sender per the return address on the envelope.  If sufficient information is not available to return the funds, they are deposited to the offender’s/resident’s hold account until release or discharge.

 

b)         Funds sent to the approved contracted vendor that cannot be deposited are processed according to the vendor’s procedures.  Offenders/residents and senders must communicate directly with the vendor regarding questions about, or the status of, receipt transactions.  Kiosks are available at facilities for direct communication between the offender/resident and the vendor.

 

c)         Upon receipt of funds from the vendor, if the DOC determines that the funds violate DOC policy, the funds are deposited to the offender's/resident’s hold account until release or discharge.

 

d)         Hold funds are subject to the ten percent cost of confinement surcharge (for adult offenders) and the ten percent restitution surcharge.

 

8.         Envelopes must be addressed to one offender/resident only.  Money orders for multiple offenders/residents are not accepted in one envelope.

 

9.         Incoming money orders showing signs of alteration (e.g., sender’s or offender’s/resident’s name changed) are not accepted.

 

10.       Legal mail, special mail, wages earned prior to incarceration, refunds, tribal payments, US Treasury checks and other special payments requiring additional information to be processed must be addressed to the offender’s/resident’s facility address.  Other business checks and government checks are accepted at the discretion of the finance director.

 

11.       Refunds from a county due to overpayment of court-ordered obligations and refunds from dependent support as a result of an overpayment must be applied to other payroll obligations in the order of priority.

 

12.       Checks or other fund instruments received by the department on an offender's/resident’s behalf need not be endorsed by the offender/resident.  Checks made payable to multiple payees must be endorsed by all parties, except the offender/resident, before being sent to the facility.  Unendorsed checks of this type received at the facilities are returned to the sender’s address.

 

13.       All correspondence must be mailed separately to the offender’s/resident’s facility address.  At the discretion of the contract vendor’s lock box processing unit, items enclosed with money orders, including examples such as greeting cards, photos, and letters, may be discarded.

 

14.       If a fund instrument is returned from the bank, the deposit is reversed and all bank charges are deducted from the offender’s/resident’s account.  If the offender/resident has insufficient funds, or if restitution had been deducted and sent to the county, a facility obligation is created.

 

15.       Deductions From Incoming Funds

Incoming funds are subject to the following deductions and are made in order listed below.  Any remaining fund are deposited into the offender’s/resident’s spending account.

a)         Repayment of advances, 100% of gross receipt;

 

b)         Court-ordered non-refundable restitution surcharge, 10% of gross receipt;

            Exemptions from the restitution surcharge are:

(1)        Refunds or returned checks that originated from an offender’s/resident’s account;

(2)        Funds sent in for private health care costs as approved and coordinated by the DOC; and

(3)        DOC claim payments.

 

c)         Cost of confinement (for adult offenders), 10% of gross receipt;

 

d)         Facility obligations and unpaid medical co-payments, 100% of gross receipt;

 

e)         Fees and costs in a civil action commenced by the offender/resident

(1)        20% of gross receipt for federal filing fees; and

(2)        50% of gross receipt for state filing fees;

 

f)         Court-ordered fines, 10% of gross receipt; and

 

g)         Disciplinary restitution, 50% of gross receipt.

 

G.        Withdrawals

1.         General Guidelines

a)         Offenders/residents may request withdrawals, in the amount of $1.00 or more, from their spending accounts by completing a withdrawal request.

 

b)         All withdrawal requests must be completed in ink and signed by the offender/resident.  Designated staff must verify the offender's/resident’s identification, witness the offender's/resident’s signature, and sign the withdrawal form.  After verification, withdrawal requests must remain under staff control.

 

c)         The unit lieutenant's or other designated unit staff member’s signature is required as a second staff verification for all withdrawal requests of $500 or more for adult offenders.  Multiple withdrawal requests received by finance on the same day are considered as one request for purposes of determining the appropriate level of approvals.  Transfers between spending and savings sub-accounts do not require a second staff verification.

 

d)         Juvenile resident withdrawal requests require the following additional level of approvals:

(1)        Requests for less than $25 must be approved and signed by the corrections security caseworker (CSC).

(2)        Requests between $25 and $100 must be approved and signed by the CSC, living unit supervisor, and transition program supervisor.

(3)        Requests of $100 or more must include a written explanation by the resident of the reason(s) for the amount requested, and must be approved and signed by the CSC, living unit supervisor, transition program supervisor, and Office of Special Investigations (OSI) investigator.

 

e)         The offender/resident must provide a postage-paid, addressed envelope with the withdrawal request to send funds out of the facility.

 

f)         Offenders/residents should keep records of any vendor addresses needed for their records.  Financial services staff will not provide vendor addresses from processed withdrawal requests.

 

g)         It is the offender’s/resident’s responsibility to communicate with the vendor regarding the offender’s/resident’s order.

 

h)         Offenders/residents are not able to receive credits from vendors.  Vendors must issue individual refund checks.

 

i)          The DOC collects a ten percent non-refundable restitution surcharge on offender/resident requests for withdrawal of funds.  The surcharge is applied to outstanding court-ordered restitution and/or court-ordered fines.  The following types of withdrawals are exempt from the surcharge:

(1)        Voluntary payments on court-ordered obligations;

(2)        State and federal litigation fees;

(3)        State IDs;

(4)        Special order medical equipment (with DOC health services approval); and

(5)        Recycling fees.

 

g)         Financial Services Staff Responsibilities

(1)        Withdrawal requests are processed within five business days of receipt.

 

 (2)       Receipts are provided to offenders/residents for all completed withdrawal requests.  Financial services staff must return the offender’s/resident’s copy of the withdrawal request when it cannot be processed due to insufficient funds or missing information.

 

 

2.         Transfers of Funds between Offenders/Residents

The transfer of funds between offenders/residents is not allowed, except as authorized in writing by the facility warden or designee.  The written authorization must be attached to the offender’s/resident’s withdrawal request.  If the offenders/residents are housed in separate facilities, the warden or designee of both facilities must give written approval.

 

3.         Canteen Purchases

Guidelines for canteen purchases are found in Policy 302.010, “Canteen,” and purchase are subject to a five percent nonrefundable restitution surcharge for offenders/residents owing court-ordered restitution and/or court-ordered fines.  Kites regarding canteen orders and refunds must be addressed to canteen staff.

 

4.         Education Co-Payments

Requests to enroll in facility-coordinated higher education classes require a withdrawal request.  A facility obligation is created if the offender/resident does not have sufficient funds.

 

5.         Postage and Shipping Charges

Postage and shipping charges for items processed by the mailroom or property staff do not require a withdrawal request.  In addition to actual mailing/shipping costs, offenders/residents are charged a per-item handling fee.  A facility obligation is created for postage and shipping charges incurred by a non-indigent offender/resident who has insufficient funds.  Postage for indigent offenders must be processed according to Policy 300.140, “Indigent Offenders.”

 

6.         Photocopies

Photocopies must be prepaid and the withdrawal request fully processed prior to an offender/resident receiving the photocopies.  The cost is 25 cents per page.

 

7.         Television Recycling Fee

An offender found to be in possession of a former offender's television, or who brings the offender’s television to property for disposal, is charged a disposal/recycling fee for the amount actually incurred by the facility for recycling (see Policy 302.250, "Offender Property").  If an offender does not have adequate funds in the offender’s account, a facility obligation is created.

 

8.         Other Disbursements Not Requiring Withdrawal Requests

            Restorative justice activities and requests for Minnesota State IDs do not require withdrawal requests when designated staff use an order form which contains the offenders’/residents’ signatures.  Designated staff may submit a summary document to finance for the purposes of charging the offenders/residents and must retain the signed order forms according to the offender/resident account retention period.

 

H.        Imprest Cash Fund

An imprest cash fund is established in accordance with Policy 104.170, “Imprest Cash Funds,” for the purpose of making the necessary cash or check disbursements from offenders’/residents’ accounts.

1.         The imprest cash fund must be reimbursed monthly, or more frequently as needed, to ensure a sufficient cash balance is available to process offender/resident financial transactions.

 

2.         The imprest cash fund checkbook must be reconciled to the bank statement and to the authorized amount at least once per month.

 

3.         The balance in the trust financial system must be reconciled to the balance in the social welfare fund appropriation at least once per month.

 

4.         Fees charged by the bank for the operation of the imprest cash fund checkbook are paid from the trust fund benefit account.

 

5.         Stop Payment Requests

Offenders/Residents requesting a stop payment of a check must complete a stop payment form or withdrawal request.  Stop payments to vendors are not processed during the first 20 business days following the issue date.  The stop payment form/withdrawal request authorizes the facility to deduct the amount of the check from the offender's/resident’s account if the check is required to be paid by Uniform Commercial Code (UCC) regulations.  Offenders/Residents are required to pay all fees associated with the stop payment.

 

6.         Stale-Dated Checks

a)         All imprest fund checks must contain the phrase "VOID AFTER 180 DAYS" clearly imprinted on the face of the check to identify the check as considered void 180 days following the date of issue.

 

b)         When an imprest fund check issued from an offender’s/resident’s account becomes stale-dated, the amount of the check is deposited to the offender’s/resident’s account.  A stop payment may be ordered at the discretion of the finance director.  Corresponding fees are withdrawn from the offender's/resident’s account before the voided funds are released to the offender/resident.  Checks that are cashed after they have been stale-dated are charged to the offender’s/resident’s account.

 

7.         Returned Checks

An offender/resident imprest fund check returned by the payee is deposited to the offender’s/resident’s account.  No refunds are given for the ten percent restitution surcharge.

 

I.          Credit Cards/Obligations

Other than facility-related obligations, offenders/residents are not allowed to incur any new financial obligations while incarcerated.  Offenders/residents are not allowed to make charges on existing credit card accounts, to open new credit card accounts, or to enter into installment payment plans while incarcerated.  Offenders/residents may not possess credit cards at the facilities.

 

J.          Offender Business Activity

Offenders/residents are prohibited from conducting any business activity during their period of incarceration or from using the facility address as a business address.  Examples of prohibited activity include the practice of a profession, the sale or solicitation of goods or services, and the manufacture or distribution of any goods or services, whether direct or indirect.  This does not include authorized hobby craft activity or routine communication with a person who is operating a business established by an offender/resident prior to the offender’s/resident’s incarceration.

 

K.        Funding for Repair of Damages Caused by Anonymous Offenders/Residents

Property belonging to the State of Minnesota deliberately damaged by anonymous offenders/residents may be replaced or repaired using funds obtained for the benefit of offenders/residents.  The property must relate directly to offender/resident use, such as common area furniture.

 

L.         Offender/Resident Claims Process – Filing Fee

Payment of an $8.00 filing fee is required for processing an offender/resident claim.  A withdrawal request must be submitted for the fee with the appropriate claim form (see Policy 303.090, “Claims”).  If the offender/resident has insufficient funds to pay the filing fee, an obligation will be created.  This fee is not subject to the restitution surcharge.

 

300.1002:  Gate Money/Release

A.        General Requirements – Gate

1.         Qualifying adult offenders are required to save $500 for assistance on their release or parole.  Deductions are made from compensation during incarceration.  Compensation received after release is not subject to the gate deduction.  In accordance with Minn. Stat. § 243.24, subd. 2, the facility must make gate money total $100 if the offender has not saved $100 upon release.

 

2.         Adult offenders who previously received $100 in state-paid gate money upon their initial release from incarceration do not receive state-paid gate money on any second or subsequent release for that offense.

 

3.         Offenders must be released from a state facility to be eligible for state-paid gate money.

 

4.         Gate Exemptions

            An offender may request that the offender be exempted from gate withholding if the offender meets one or more of the criteria below.  Once an exemption is approved, it will not be reversed.

            a)         Offenders sentenced to life without parole;

 

b)         Offenders who are likely to reach their release date posthumously, as determined by the warden or designee; or

 

c)         Federal offenders housed in Minnesota correctional facilities under contract.

 

5.         Upon determining that an offender is exempt from saving gate money, any payroll funds accumulated in the offender’s gate savings account are subject to the compensation deductions as outlined in section 300.1003, prior to transfer to the offender’s savings account.

 

6.         Gate money may be saved voluntarily, but cannot exceed $500.  Voluntary transfers to gate savings, once completed, are subject to all rules established for gate savings.

 

7.         Interstate Corrections Compact

            Adult offenders housed in Minnesota correctional facilities under an interstate corrections compact agreement are required to save gate money.  No state money is provide unless the sending state reimburses the department.

 

B.        Spending of Gate Money

            Upon the written approval of the warden or designee, or the director of the work release program or designee, an offender who has a demonstrated financial need may be allowed to spend money accumulated in the offender’s gate savings account according to the following guidelines.  Offenders must submit the required forms to the appropriate unit for processing.

            1.         The spending of gate money is limited to the following:

                        a)         Unpaid facility obligations;

                        b)         Court-ordered obligations;

                        c)         Educational courses;

d)         Television, radio, typewriter, or electronic tablet only when the offender does not currently have the item in the offender’s property;

e)         Health-related or ADA-related items;

f)         Driver’s license or photo ID if the offender is within nine months of release;

g)         Paying bills; and

h)         Emergency situations.

 

2.         Offenders must not owe facility obligations, court-ordered obligations, or court-ordered dependent support unless the request is for the purchase of a health-related or ADA-related item, or is for a driver’s license or photo ID when within nine months of release.

 

3.         Offenders must have a balance of at least $100 in their gate savings account.

 

4.         If the amount requested to be spent would reduce the gate savings balance to less than $100, the offender must have at least two years remaining until the offender’s confinement release date.

 

5.         Balances in voluntary savings and spending must be spent first.

 

6.         Offenders are limited to one approved request per 12-month period.  The maximum an offender may spend is $200.

 

7.         Offenders must be currently employed and have a positive work history for the previous six months.

 

8.         Offender must be discipline-free with no infractions resulting in segregation, including conditional segregation, for the previous six months.

 

9.         When requesting to assist an offender with an outstanding bill, facility staff must request a copy of the bill or confirm existence of the bill with the appropriate company.  Facility staff must coordinate direct payment to the company.

 

10.       With the approval of the deputy or assistant commissioner of facility operations, individual facilities may establish additional pre-spending requirements.

 

C.        Release

1.         Offender/resident accounts are reviewed prior to the offender’s/resident’s release to determine the amount of gate money, if any, to be provided to the offender from state funds.  Compensation paid and available, using first in, first out (FIFO) method (assuming that the funds on deposit for the longest period are withdrawn first) must be used prior to providing state funds.

 

2.         Release violators’ gate funds are transferred into the offender’s spending account and are subject to deductions for facility obligations.

 

3.         Offenders released to the intensive supervised release program (ISR), conditional medical release, intensive community supervision (ICS), or work release, who are eligible for gate money, are paid their gate money at the time they are released or paroled from the department.

 

4.         Offenders whose sentences are commuted or vacated are not eligible for state-paid gate money.

 

5.         Offender/resident accounts are reviewed prior to the offender’s/resident’s release for any outstanding facility obligations.  Offender balances in excess of $100 in gate saving, as well as balances in the offender’s/resident’s spending, voluntary savings, or hold accounts must be transferred and applied to any outstanding facility obligations.

 

6.         Financial services staff must prepare a release card for the amount in the spending, savings, gate savings, and hold sub-accounts for the offender's/resident’s release.  Checks and/or cash are issued in addition to, or in place of, release cards when maximum card amounts have been reached, or by exception when approved by the finance director or designee.  Balances of less than $1.00 are not issued.

 

7.         At the time of release, offenders/residents must sign the release voucher verifying the amount of funds reported on the voucher and acknowledging receipt of the release card and/or check and/or cash received from the facility.

 

8.         Unpaid facility obligations remain open on an offender's/resident’s account for three years.  After three years, the obligation is written off to the trust fund benefit account.

 

9.         With written approval of the warden or designee, adult offenders who are not eligible for state-paid gate money may have some limited release costs provided by the facility, including transportation and meals.

 

300.1003: Compensation

A.        Compensation processing

Compensation includes any payment to adult offenders for assignments performed while incarcerated and any allowances paid to juvenile residents.  The rate of compensation paid to offenders/residents is in accordance with the appropriate offender/resident compensation plan.  (See Division Directive 204.010, “Offender Assignment and Compensation Plan” and Policy 204.100, “Juvenile Resident Pay Plan.”)

1.         Offender/resident compensation is processed according to facility schedules.

 

2.         Facility compensation payment errors are processed in the following order:

a)         An adjustment to the offender’s/resident’s current payroll must be completed; or

b)         The payroll in error is reversed and processed correctly; or

c)         A miscellaneous receipt and obligation is established if the offender/resident does not have sufficient funds in the offender’s/resident’s spending and/or voluntary savings accounts to reverse an overpayment.

 

B.        Unified Pay Plan – Non-Interstate Deductions

1.         With the exception of advances, facility obligations, medical co-payments, and federal/state filing fees, the total percentage of all deductions as listed below must not exceed 50% of gross compensation.

 

2.         Deductions are withheld, in the following order of priority, and cannot exceed the limits listed below:

a)         Repayment of advances: 100% of gross compensation.

 

b)         Gate savings

(1)        Without any court-ordered restitution or court-ordered fines: 50% of gross compensation until $500 is accumulated.

(2)        With court-ordered restitution or court-ordered fines: 50% of gross compensation until $100 is accumulated.  Once $100 is accumulated, this deduction reduces to 25% until $500 is accumulated.

 

c)         Court-ordered dependent support

If the court-ordered amount is less than 50% of gross compensation, the amount listed in the court order is deducted.  If the court-ordered amount is greater than 50% of gross compensation, 50% of the gross compensation is deducted.

 

d)         Court-ordered restitutions: 50% of gross compensation.

 

e)         Offender room and board: 50% of gross compensation (applicable to MINNCOR Bridge program).

 

f)         Facility obligations and unpaid medical co-payments: 100% of gross compensation.

 

g)         Fees and costs in a civil action commenced by an offender/resident:

(1)        20% of gross compensation for federal filing fees; and

(2)        50% of gross compensation for state filing fees.

 

h)         Court-ordered fines: 50% of gross compensation.

 

i)          Crime victim’s reparation board contribution: 5% of gross compensation.

 

j)          Disciplinary restitution: 50% of gross compensation.

 

C.        Unified Pay Plan – Interstate Program Deductions

1.         General Guidelines

a)         In accordance with the guidelines regulating prison industry enhancement certification programs (PIECP), MINNCOR staff must collect the following completed and signed forms from offenders prior to beginning work:

(1)        Voluntary Agreement of Participation Private Sector/Prison Industries Enhancement Project form (attached); and

(2)        Request for Social Security Number and Certification form (attached).

 

b)         The completed forms are uploaded to ODocS by MINNOR staff.  Financial services staff review the forms and establish tax withholding in the trust financial system for offenders who have not provided a social security number.

 

c)         With the exception of advances, facility obligations, medical co-payments, and federal/state filing fees, the total percentage of deductions must not exceed 76% of gross compensation for offenders working at the base level, 70% of gross compensation for offenders working at the pre-advanced level, and 60 % of gross compensation for offenders working at the advanced level.  Deductions are authorized under United States Code title 18, sec.1761(c).

 

d)         Interstate program deductions are limited in accordance with mandatory federal criteria for program participation in the Prison Industry Enhancement Certification Program (PIECP).  Mandatory deductions include withholding taxes when applicable and the crime victim’s reparations board contribution.

 

e)         The cost of confinement collected remains with MINNCOR to be used in the program.

 

f)         Offenders in the MINNCOR Bridge program must be placed at the advanced pay level.

 

2.         Deductions are withheld in the following order of priority, and cannot exceed the limits listed below:

a)         Federal and state payroll taxes: taxes are deducted at the current Internal Revenue Service (IRS) withholding rate when applicable.

 

b)         Repayment of advances: 100% of gross compensation.

 

c)         Gate savings: 50 % of gross compensation until $500 is accumulated.

 

d)         Crime victim’s reparation board contribution: 5% of gross compensation.

 

e)         Court-ordered dependent support: if the court-ordered amount is less than 65% of gross compensation, the amount listed in the court order is deducted.  If the court-ordered amount is greater than 65% of gross compensation, 65% of gross compensation is deducted.

 

f)         Court-ordered restitutions: 10% of gross compensation.

 

g)         Room and board: 75% of gross compensation (Interstate MINNCOR Bridge).

 

h)         Cost of confinement (MINNCOR PIECP): 75% of gross compensation.

 

i)          Facility obligations and unpaid medical co-payments: 100% of gross compensation.

 

j)          Fee and costs in a civil action commenced by an offender/resident:

            (1)        20% of gross compensation for federal filing fees; and

            (2)        50% of gross compensation for state filing fees.

 

D.        Juvenile Compensation Deductions

1.         Juvenile residents have 50% of their gross compensation deducted, when ordered by facility disciplinary hearing officers for damage to property.

 

2.         Other resident obligations and federal litigation filing fees are deducted from the remaining compensation.

 

E.         Work Release

Offenders must submit a portion of their earned wages to the department as defined by applicable off-site programs.  Deductions are immediately withheld from the portion of pay submitted by each offender, in the following order of priority, and cannot exceed the limits listed below:

1.         Repayment of advances: 100% of receipt.

 

2.         Gate money: 100% of receipt until the required amount is accumulated, as specified in section 300.1002, above.

 

3.         Room and board: 100% of receipt, limited to the amount as determined by the program.

 

4.         Travel expenses to and from work: as determined by the program.

 

5.         Court-ordered restitution: 100% of receipt.

 

6.         Facility obligations and unpaid medical co-payments: 100% of gross compensation.

 

7.         Fees and costs in a civil action commenced by an offender:

a)         20% of gross compensation for federal filing fees; and

b)         50% of gross compensation for state filing fees.

 

8.         Court-ordered fines: 100% of receipt.

 

9.         Crime victim’s reparation board contribution: 5% of receipt.

 

10.       Disciplinary restitution: 100% of receipt.

 

300.1004: Income Reporting, Taxes and Levies

A.        Facilities

1.         MINNCOR staff are responsible for informing affected offenders about the potential for backup withholding of taxes.

 

2.         When a facility receives a notice of levy for an offender, financial services staff must contact the IRS to notify them the offender is incarcerated.  No deductions are withheld from compensation paid by the facility for the levy while the offender is incarcerated.

 

B.        Private Employers

The procedures in this section do not apply to wages paid to offenders by private employers.

 

C.        Offenders

Offenders are solely responsible for the preparation and filing of personal income tax returns.  A form 1099 is issued to offenders in the following situations:

1.         Annual earnings of $600 or more working in MINNCOR interstate (PIECP) programs; and/or

2.         Annual interest earned of $10 or more.

 

300.1005: Court-Ordered Deductions

A.        General Guidelines

1.         The department authority, as specified in Minnesota Statutes, supersedes the county authority for the deduction for these court-ordered obligations.

 

2.         Adult offenders with court-ordered restitution and/or court-ordered fines are subject to the restitution surcharge on all incoming and outgoing funds as specified in this policy.

 

3.         Amounts collected are remitted to the appropriate court or deposited to the appropriate fund on a regular basis.

 

4.         Offenders may voluntarily make payments on court-ordered obligation(s) over and above the mandatory amounts withheld.  Voluntary payments are not subject to the ten percent restitution surcharge.

 

5.         The total amount of restitution ordered as “joint and several” is applied to each defendant listed on the order.

 

6.         Unpaid restitution and other court-ordered obligations from a prior incarceration are withheld even if the adult offender is readmitted under a different conviction.

 

7.         Deductions are withheld for restitution and court-ordered obligations from other states.

 

8.         Offenders must notify financial services of any amounts paid on restitution or court-ordered obligations from outside sources so that balances in the trust financial system are updated accordingly.

 

9.         Court-ordered obligations reduced to civil judgement must continue to be paid as court ordered.

 

B.        Fees and Costs in a Civil Action Commenced While Incarcerated

1.         State Suits

Offenders/residents must make payments for filing fees, costs, judgments, and other amounts as ordered by a state court relating to a civil lawsuit maintained by an offender/resident while incarcerated.

 

2.         Federal Suits

Refer to facility procedures for federal litigation filing fees.

 

C.        Court-Ordered Dependent Support

General Guidelines

1.         Adult offenders in a correctional facility must have a portion of their compensation or outside wages deducted for the payment of court-ordered dependent support obligation(s).

 

2.         Payments collected are submitted bi-weekly to the appropriate court or child support agency.

 

3.         Deductions for court-ordered dependent support remain in effect until notification to discontinue is received from the originating agency.

 

4.         To comply with statutory requirements, a report of all offenders currently committed to the department must be compiled centrally by central office and submitted to the Minnesota New Hire Reporting Center.

 

            5.         Deductions are withheld for dependent support obligations from other states.

 

300.1004: Disciplinary Restitution

A.        General Guidelines

1.         In accordance with Policy 303.010, “Offender Discipline or Instruction 303.010RW, “Discipline Plan and Rules of Conduct,” offenders/residents are required to pay restitution when ordered by a disciplinary hearing officer or by the offender'/resident’s agreement through waiver of disciplinary due process for the following:

            a)         To the facility for damage to property;

 

                        b)         To staff for damage to property; and/or

           

c)         To another offender/resident for personal injury caused by the offender’s/resident’s own conduct or for damage to property.

 

2.         The amount of and basis for restitution must be fully documented in the discipline hearing findings or waiver.  Waivers of disciplinary due process must be signed by the offender/resident indicating agreement to pay restitution.

 

B.        Deduction

1.         Payment is made from the funds in the offender's/resident’s spending and voluntary savings sub-accounts at the time of the findings or waiver.  Offender/resident funds cannot be put on hold based on pending charges without written approval of the warden or designee.

 

2.         If the amount in the offender's/resident’s spending and voluntary savings sub-accounts is insufficient to pay the restitution, a disciplinary restitution obligation is created for the remaining amount.

 

3.         Payments collected for state property damage are deposited in a Property Damage group account in the trust financial system.  Funds are subsequently used for the repair or replacement of offender-damaged property.

 

300.1003: Forfeiture of Contraband Money or Property

A.        Contraband Money

1.         Money received by or found in the possession of an offender/resident, determined through a facility disciplinary hearing to be prohibited is considered contraband (as defined by Policy 301.030, “Contraband”).  Contraband may be seized by authority of the warden or designee.

 

2.         Incoming fund instruments and/or cash suspected to be contraband are held in evidence by facility investigative staff pending completion of the disciplinary process.  Once the proper disposition of the funds has been determined, the facility investigative staff provides the money to financial services staff for processing.

 

3.         Seized contraband money, if not claimed by its rightful owner within 30 days, is deposited to the trust fund benefit account.

 

B.        Contraband Property

If the warden or designee directs contraband property (see Policy 302.250, “Offender Property” and Policy 301.030, “Contraband”) to be sold, discipline staff must consult with financial services staff to facilitate the sale.  Financial services staff must deposit the proceeds from the sale to the trust fund benefit account.

 

300.1004:        Disposition of Offender/Resident Money and Property upon Offender/Resident Death, Release or Escape

A.        General Guidelines

1.         Upon an offender's/resident’s death, release, or escape, money or personal property in the facility's possession is managed consistent with state statutes.

 

2.         Upon receiving notification of an offender’s/resident’s death, financial services staff must place the offender’s/resident’s funds on hold.  Once the DOC’s forensic specialist has released the funds they must be held for a minimum of 30 days before disposition.

 

B.        Money:

1.         The offender's/resident’s finds are used to pay for any of the offender's/resident’s existing obligations to the department.

 

2.         The remainder of the money is held in the unclaimed funds account for six months.

 

3.         The offender/resident or legal heirs may, at any time after the six-month hold period, claim the funds deposited in the trust fund benefit account through proof of identity or heirship as governed by Minn. Stat. §241.09.

 

4.         Upon receiving the name and address of the legal next of kin, finance or other assigned facility staff mail the Next of Kin Notification Letter of Right to Claim Property (sample attached) and the Affidavit for Collection of Offender Personal Property form (attached).  Upon receipt of the notarized affidavit, financial services staff must distribut the funds accordingly, along with the offender’s trust account statement,.

 

5.         If the money is not claimed within six months, it is deposited in the trust fund benefit account to be used for the general benefit of all offenders/residents, subject to Minn. Stat. § 241.09.

 

C.        Property

1.         Unclaimed offender/resident personal property is handled in accordance with Policy 302.250, “Offender Property” and Division Directive 302.260, “Juvenile Resident Property.”

 

2.         The proceeds from the sale of any unclaimed personal property, after the deduction for costs, are deposited in the trust fund benefit account to be used for the general benefit of all offenders/residents, subject to Minn. Stat. § 241.09.

 

INTERNAL CONTROLS:

A.        Offender banking and payroll transactions are retained electronically within the trust financial system.

 

B.        Original offender transaction and compensation documents are retained in financial services according to the record retention schedule.

 

C.        W-9 Forms (Request for Social Security Number) are retained electronically in ODocS.

 

ACA STANDARDS:            4-4044 through 4-4047, ABC-1B-17 through 1-ABC-1B-19, 2-CO-1B-14

 

REFERENCES:       Attorney General's Opinion, 10 January 1986

Policy 104.170, “Imprest Cash Funds”

Policy 104.180, “Investments”

Division Directive 204.010, “Offender Assignment and Compensation Plan”

Policy 300.110, “Offender Aid to Victims of Crime”

Policy 300.140, “Indigent Offenders”

Policy 303.090, “Offender Property and Assigned-Duty Injury Claims”

Policy 301.030, “Contraband”

Policy 302.250, "Offender Property"

Division Directive 302.260, “Juvenile Resident Property”

Policy 303.010, "Offender Discipline"

Instruction 303.010RW, “Discipline Plan and Rules of Conduct”

Policy 106.210, “Providing Access to and Protecting Government Data”

Minn. Stat. §§ 16A.72; 241.08; 241.09; 241.26, subd. 5, subd. 6, subd, 7; 243.212; 243.23; 243.24; 244.14; 246.15; 256.88; 256.998; 524.3-1201; 563.02; 609.101; 609.105; 611A.04; and Chapter 518C

United States Code title 28, section 1915

Prison Litigation Reform Act, United States Code title 42, section 1997e

 

REPLACES:             Policy 300.100, “Offender/Resident Accounts,” 8/2/16.

All facility policies, memos, or other communications whether verbal, written, or transmitted by electronic means regarding this topic.

 

ATTACHMENTS:   Affidavit for Collection of Property (300.100C)

                                    Sample Next of Kin Notification Letter of Right to Claim Property (300.100D)

Gate Savings Form (300.100E)

Voluntary Agreement of Participation – PIECP (300.100F)

Request for Social Security Number and Certification (300.100G)

 

 

APPROVALS:

Deputy Commissioner, Facility Services

Deputy Commissioner, Community Services

Assistant Commissioner, Facility Services

Assistant Commissioner, Operations Support