THE PURPOSE OF THE ACT IS THREEFOLD: (1) TO REDUCE THE NUMBER OF COMMITMENTS TO STATE OPERATED PENAL INSTITUTIONS, (2) TO ENCOURAGE COUNTIES TO DEVELOP A MORE COORDINATED LOCAL CORRECTIONS/CRIMINAL JUSTICE SYSTEM, AND (3) TO IMPLEMENT THE STATE'S POLICY OF SUPPORTING COMMUNITY-BASED CORRECTIONAL SERVICES. IN COMBINATION, THESE THREE GOALS WILL SHIFT CORRECTIONS TO A COUNTY LEVEL ADMINISTERED SYSTEM. AT THE HEART OF THE CCA IS A SUBSIDY THAT ENABLES PARTICIPATING JURISDICTIONS TO FINANCE THE NEW COUNTY-BASED ACTIVITIES. THE COUNTIES' SUBSIDIES ARE BASED ON A FOUR-PART FORMULA THAT DISTRIBUTES THE AVAILABLE FUNDS TO PARTICIPATING COUNTIES EQUITABLY ON THE BASIS OF FISCAL NEED. THE COSTS FOR CERTAIN COMMITMENTS TO STATE INSTITUTIONS ARE DEDUCTED FROM THE SUBSIDY. PARTICIPATING COUNTIES MUST CREATE A CORRECTIONS ADVISORY BOARD WHICH IS CHARGED WITH PREPARING A COMPREHENSIVE PLAN FOR THE EXPENDITURE OF THE SUBSIDY. THE PLAN IS REVIEWED AND APPROVED BY THE COUNTY COMMISSIONERS, WHO RETAIN ULTIMATE AUTHORITY FOR THE EXPENDITURE OF THE FUNDS, AND THEN IS SUBMITTED FOR FINAL APPROVAL BY THE STATE. THE ROLE OF THE STATE DEPARTMENT OF CORRECTIONS IS MINIMAL: REVIEW THE PLAN, MONITOR EXPENDITURES TO SEE THAT THEY ARE IN CONFORMITY WITH THE SPENDING CALLED FOR IN THE PLAN, CALCULATE QUARTERLY SUBSIDY PAYMENTS AFTER DEDUCTIONS ARE MADE FOR COMMITMENTS TO STATE INSTITUTIONS, AND PROVIDE TECHNICAL ASSISTANCE TO COUNTIES WHEN NEEDED. THE FIRST SUBSIDIES WERE MADE AVAILABLE TO THREE DEMONSTRATION REGIONS IN 1974. SINCE THE INITIAL THREE REGIONS JOINED THE PROGRAM, EIGHT MORE REGIONS THAT INCLUDE 22 COUNTIES HAVE JOINED. TEN MORE COUNTIES ARE EXPECTED TO APPLY UNDER THE ACT IN THE NEXT BIENNIUM. DEPARTMENT OF CORRECTIONS ADMINISTRATIVE COSTS ASSOCIATED WITH THE CCA ARE ABOUT $100,000 PER YEAR. THE DEPARTMENT HAS REQUESTED $12.7 MILLION FOR THE SUBSIDY FUND IN THE 1977-79 BIENNIUM, UP FROM $7.5 MILLION IN THE 1975-77 PERIOD. AN EXAMINATION OF THE TRANSFERABILITY OF THIS PROGRAM TO OTHER STATES AND LOCALITIES AND A COPY OF THE MINNESOTA COMMUNITY CORRECTIONS ACT CONCLUDE THE REPORT. (SNI ABSTRACT)..ELW