HF 986

2nd Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:43am

A bill for an act
relating to human services; amending county maintenance of effort provisions
for mental health services; changing family services collaboratives; establishing
the State-County Results, Accountability, and Service Delivery Redesign Act;
establishing the Commission on Innovation; establishing community solutions
grants and fund; requiring reports; appropriating money; amending Minnesota
Statutes 2008, sections 245.4835; 245.4932, subdivision 1; 256F.13, subdivisions
1, 2; proposing coding for new law as Minnesota Statutes, chapter 402A;
repealing Minnesota Statutes 2008, sections 245.492, subdivision 2; 256F.10,
subdivision 7.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

COUNTY SERVICES

Section 1.

Minnesota Statutes 2008, section 245.4835, is amended to read:

245.4835 COUNTY MAINTENANCE OF EFFORT.

Subdivision 1.

Required expenditures.

new text begin (a) new text end Counties must maintain a level of
expenditures for mental health services under sections 245.461 to 245.484 and 245.487 to
245.4889 so that each year's county expenditures are at least equal to that county's average
expenditures for those services for calendar years 2004 and 2005. The commissioner will
adjust each county's base level for minimum expenditures in each year by the amount of
any increase or decrease in that county's state grants or other noncounty revenues for
mental health services under sections 245.461 to 245.484 and 245.487 to 245.4889.

new text begin (b) In order to simplify administration and improve budgeting predictability, the
commissioner shall:
new text end

new text begin (1) use each county's actual prior year revenues to adjust the county's minimum
required expenditures for the coming year;
new text end

new text begin (2) allocate each county's revenues proportionally across applicable expenditures;
and
new text end

new text begin (3) adjust each county's base to allow for major decreases in state or federal block
grants or other revenues that can be used for mental health services, but are not dedicated
to mental health; in this case, the commissioner shall calculate the mental health share of
total county expenditures which were eligible to be funded from that revenue source in the
base year and then use that mental health share to allocate the change in those revenues to
mental health. This clause applies to changes in revenues that are beyond the county's
control and expires December 31, 2011.
new text end

new text begin (c) In order to simplify administration and improve budgeting predictability, the
commissioner may:
new text end

new text begin (1) use more current information regarding major changes in revenues if the change
is known early enough to allow counties time to adjust their budgets; and
new text end

new text begin (2) adjust a county's base if the county's population is declining and the county's per
capita mental health expenditures are higher than the state average.
new text end

Subd. 2.

Failure to maintain expenditures.

new text begin (a) new text end If a county does not comply with
subdivision 1, the commissioner shall require the county to develop a corrective action plan
according to a format and timeline established by the commissioner. If the commissioner
determines that a county has not developed an acceptable corrective action plan within
the required timeline, or that the county is not in compliance with an approved corrective
action plan, the protections provided to that county under section 245.485 do not apply.

new text begin (b) The commissioner shall consider the following factors to determine whether to
approve a county's corrective action plan:
new text end

new text begin (1) the degree to which a county is maximizing revenues for mental health services
from noncounty sources;
new text end

new text begin (2) the degree to which a county is expanding use of alternative services which meet
mental health needs but do not count as mental health services within existing reporting
systems. If approved by the commissioner, the alternative services must be included in the
county's base as well as subsequent years. The commissioner's approval for alternative
services must be based on the following criteria:
new text end

new text begin (i) the services must be provided to children with emotional disturbance or adults
with mental illness;
new text end

new text begin (ii) the services must be based on an individual treatment plan or individual family
community support plan, as defined in section 425.4871;
new text end

new text begin (iii) the services must be supervised by a mental health professional and provided by
staff who meet the staff qualifications defined in sections 256B.0943, subdivision 7, and
256B.0622, subdivision 5; and
new text end

new text begin (iv) additional county expenditures to make up for the prior year's underspending
may be spread out over a two-year period.
new text end

new text begin Subd. 3. new text end

new text begin Performance measurement. new text end

new text begin The commissioner shall develop an interim
report by January 15, 2010, followed by a final report by January 15, 2011, to the chairs of
the house of representatives and senate committees with jurisdiction over mental health,
regarding county performance measures for mental health. The report must include
recommendations as to whether, and which, any measures may substitute for all or part
of the fiscal maintenance of effort requirements in subdivision 1. The commissioner
shall consult with county and mental health advocacy representatives in developing the
reports and recommendations.
new text end

Sec. 2.

Minnesota Statutes 2008, section 245.4932, subdivision 1, is amended to read:

Subdivision 1.

Collaborative responsibilities.

The children's mental health
collaborative shall have the following authority and responsibilities regarding federal
revenue enhancement:

(1) the collaborative must establish an integrated fund;

(2) the collaborative shall designate a lead county or other qualified entity as the
fiscal agency for reporting, claiming, and receiving payments;

(3) the collaborative or lead county may enter into subcontracts with other counties,
school districts, special education cooperatives, municipalities, and other public and
nonprofit entities for purposes of identifying and claiming eligible expenditures to enhance
federal reimbursement;

(4) the collaborative shall use any enhanced revenue attributable to the activities of
the collaborative, including administrative and service revenue, solely to provide mental
health services or to expand the operational target population. The lead county or other
qualified entity may not use enhanced federal revenue for any other purpose;

deleted text begin (5) the members of the collaborative must continue the base level of expenditures,
as defined in section 245.492, subdivision 2, for services for children with emotional or
behavioral disturbances and their families from any state, county, federal, or other public
or private funding source which, in the absence of the new federal reimbursement earned
under sections 245.491 to 245.495, would have been available for those services. The
base year for purposes of this subdivision shall be the accounting period closest to state
fiscal year 1993;
deleted text end

deleted text begin (6) deleted text end new text begin (5) new text end the collaborative or lead county must develop and maintain an accounting and
financial management system adequate to support all claims for federal reimbursement,
including a clear audit trail and any provisions specified in the contract with the
commissioner of human services;

deleted text begin (7) deleted text end new text begin (6) new text end the collaborative or its members may elect to pay the nonfederal share of the
medical assistance costs for services designated by the collaborative; and

deleted text begin (8) deleted text end new text begin (7) new text end the lead county or other qualified entity may not use federal funds or local
funds designated as matching for other federal funds to provide the nonfederal share of
medical assistance.

Sec. 3.

Minnesota Statutes 2008, section 256F.13, subdivision 1, is amended to read:

Subdivision 1.

Federal revenue enhancement.

(a) The commissioner of human
services may enter into an agreement with one or more family services collaboratives
to enhance federal reimbursement under title IV-E of the Social Security Act and
federal administrative reimbursement under title XIX of the Social Security Act. The
commissioner may contract with the Department of Education for purposes of transferring
the federal reimbursement to the commissioner of education to be distributed to the
collaboratives according to clause (2). The commissioner shall have the following
authority and responsibilities regarding family services collaboratives:

(1) the commissioner shall submit amendments to state plans and seek waivers as
necessary to implement the provisions of this section;

(2) the commissioner shall pay the federal reimbursement earned under this
subdivision to each collaborative based on their earnings. Payments to collaboratives for
expenditures under this subdivision will only be made of federal earnings from services
provided by the collaborative;

deleted text begin (3) the commissioner shall review expenditures of family services collaboratives
using reports specified in the agreement with the collaborative to ensure that the base level
of expenditures is continued and new federal reimbursement is used to expand education,
social, health, or health-related services to young children and their families;
deleted text end

deleted text begin (4) the commissioner may reduce, suspend, or eliminate a family services
collaborative's obligations to continue the base level of expenditures or expansion of
services if the commissioner determines that one or more of the following conditions
apply:
deleted text end

deleted text begin (i) imposition of levy limits that significantly reduce available funds for social,
health, or health-related services to families and children;
deleted text end

deleted text begin (ii) reduction in the net tax capacity of the taxable property eligible to be taxed by
the lead county or subcontractor that significantly reduces available funds for education,
social, health, or health-related services to families and children;
deleted text end

deleted text begin (iii) reduction in the number of children under age 19 in the county, collaborative
service delivery area, subcontractor's district, or catchment area when compared to the
number in the base year using the most recent data provided by the State Demographer's
Office; or
deleted text end

deleted text begin (iv) termination of the federal revenue earned under the family services collaborative
agreement;
deleted text end

deleted text begin (5) deleted text end new text begin (3) new text end the commissioner shall not use the federal reimbursement earned under this
subdivision in determining the allocation or distribution of other funds to counties or
collaboratives;

deleted text begin (6) deleted text end new text begin (4) new text end the commissioner may suspend, reduce, or terminate the federal
reimbursement to a provider that does not meet the reporting or other requirements
of this subdivision;

deleted text begin (7) deleted text end new text begin (5) new text end the commissioner shall recover from the family services collaborative any
federal fiscal disallowances or sanctions for audit exceptions directly attributable to the
family services collaborative's actions in the integrated fund, or the proportional share if
federal fiscal disallowances or sanctions are based on a statewide random sample; and

deleted text begin (8) deleted text end new text begin (6) new text end the commissioner shall establish criteria for the family services collaborative
for the accounting and financial management system that will support claims for federal
reimbursement.

(b) The family services collaborative shall have the following authority and
responsibilities regarding federal revenue enhancement:

(1) the family services collaborative shall be the party with which the commissioner
contracts. A lead county shall be designated as the fiscal agency for reporting, claiming,
and receiving payments;

(2) the family services collaboratives may enter into subcontracts with other
counties, school districts, special education cooperatives, municipalities, and other public
and nonprofit entities for purposes of identifying and claiming eligible expenditures to
enhance federal reimbursement, or to expand education, social, health, or health-related
services to families and children;

deleted text begin (3) the family services collaborative must continue the base level of expenditures for
education, social, health, or health-related services to families and children from any state,
county, federal, or other public or private funding source which, in the absence of the new
federal reimbursement earned under this subdivision, would have been available for those
services, except as provided in paragraph (a), clause (4). The base year for purposes of this
subdivision shall be the four-quarter calendar year ending at least two calendar quarters
before the first calendar quarter in which the new federal reimbursement is earned;
deleted text end

deleted text begin (4) the family services collaborative must use all new federal reimbursement
resulting from federal revenue enhancement to expand expenditures for education, social,
health, or health-related services to families and children beyond the base level, except
as provided in paragraph (a), clause (4);
deleted text end

deleted text begin (5) deleted text end new text begin (3) new text end the family services collaborative must ensure that expenditures submitted
for federal reimbursement are not made from federal funds or funds used to match other
federal funds. Notwithstanding section 256B.19, subdivision 1, for the purposes of family
services collaborative expenditures under agreement with the department, the nonfederal
share of costs shall be provided by the family services collaborative from sources other
than federal funds or funds used to match other federal funds;

deleted text begin (6) deleted text end new text begin (4) new text end the family services collaborative must develop and maintain an accounting
and financial management system adequate to support all claims for federal reimbursement,
including a clear audit trail and any provisions specified in the agreement; and

deleted text begin (7) deleted text end new text begin (5) new text end the family services collaborative shall submit an annual report to the
commissioner as specified in the agreement.

Sec. 4.

Minnesota Statutes 2008, section 256F.13, subdivision 2, is amended to read:

Subd. 2.

Agreements with family services collaboratives.

At a minimum, the
agreement between the commissioner and the family services collaborative shall include
the following provisions:

(1) specific documentation of the expenditures eligible for federal reimbursement;

(2) the process for developing and submitting claims to the commissioner;

(3) specific identification of the education, social, health, or health-related services
to families and children which are to be expanded with the federal reimbursement;

deleted text begin (4) reporting and review procedures ensuring that the family services collaborative
must continue the base level of expenditures for the education, social, health, or
health-related services for families and children as specified in clause (3);
deleted text end

deleted text begin (5) reporting and review procedures to ensure that federal revenue earned under this
section is spent specifically to expand education, social, health, or health-related services
for families and children as specified in clause (4);
deleted text end

deleted text begin (6) deleted text end new text begin (4) new text end the period of time, not to exceed three years, governing the terms of the
agreement and provisions for amendments to, and renewal of the agreement; and

deleted text begin (7) deleted text end new text begin (5) new text end an annual report prepared by the family services collaborative.

Sec. 5. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, sections 245.492, subdivision 2; and 256F.10, subdivision
7, new text end new text begin are repealed.
new text end

ARTICLE 2

COUNTY GOVERNANCE REFORM

Section 1.

new text begin [402A.01] CITATION.
new text end

new text begin Sections 402A.01 to 402A.50 may be cited as the "State-County Results,
Accountability, and Service Delivery Redesign Act."
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

new text begin [402A.10] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Terms defined. new text end

new text begin For the purposes of this chapter, the terms defined in
this subdivision have the meanings given.
new text end

new text begin Subd. 2. new text end

new text begin Council. new text end

new text begin "Council" means the Council on State-County Results,
Accountability, and Service Delivery Redesign established in section 402A.30.
new text end

new text begin Subd. 3. new text end

new text begin Redesign. new text end

new text begin "Redesign" means the State-County Results, Accountability,
and Service Delivery Redesign under this chapter.
new text end

new text begin Subd. 4. new text end

new text begin Service delivery authority. new text end

new text begin "Service delivery authority" means a single
county, or group of counties operating by execution of a joint powers agreement under
section 471.59 or other contractual agreement, that has voluntarily chosen by resolution of
the county board of commissioners to participate in the redesign under this chapter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

new text begin [402A.20] ESTABLISHMENT; PURPOSE; PARTICIPATION.
new text end

new text begin (a) The State-County Results, Accountability, and Service Delivery redesign is
established to authorize implementation of methods and procedures for administering
assistance and services to recipients or potential recipients of public welfare and other
services delivered by counties which encourage greater transparency, more effective
governance, and innovation through the use of flexibility and performance management.
new text end

new text begin (b) Beginning January 1, 2010, and annually thereafter, each county board in
Minnesota shall vote to determine whether the county intends to participate in the redesign
under this chapter.
new text end

new text begin (c) Participating counties in the redesign must have the option of withdrawing from
participation if the criteria in clauses (1) and (2) are met:
new text end

new text begin (1) The county shall submit written notification to the council in the first quarter of
the calendar year in which the county wishes to withdraw.
new text end

new text begin (2) If a county wishing to withdraw has received an appropriation from the state for
costs related to the county's participation in the redesign, those funds must be repaid. If a
county withdraws after participating in the redesign for:
new text end

new text begin (i) one year or less, the county must repay 75 percent of the money appropriated;
new text end

new text begin (ii) more than one year but less than two years, the county must repay 50 percent of
the money appropriated;
new text end

new text begin (iii) two years or more but less than three years, the county must repay 25 percent of
the money appropriated; or
new text end

new text begin (iv) three years or more, the county is not required to repay the appropriation.
new text end

new text begin (3) The commissioner may waive the repayment requirement in clause (2).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

new text begin [402A.30] COUNCIL.
new text end

new text begin Subdivision 1. new text end

new text begin Council. new text end

new text begin (a) There is created a State-County Results, Accountability,
and Service Delivery Redesign Council. The council is responsible for review of the
redesign and must be convened by the commissioner of human services. Appointed council
members must be appointed by their respective agencies, associations, or governmental
units by November 1, 2009. The council shall be cochaired by the commissioner of human
services, or designee, and a county representative from paragraph (b), clause (5) or (6),
appointed by the Association of Minnesota Counties. Recommendations of the council
must be approved by a majority of the council members. The provisions of section 15.059
do not apply to this council, and this council does not expire.
new text end

new text begin (b) The council must consist of the following members:
new text end

new text begin (1) one representative from the governor's office;
new text end

new text begin (2) from the house of representatives, one member of the majority party and one
member of the minority party, as appointed by the speaker of the house;
new text end

new text begin (3) from the senate, one member of the majority party and one member of the
minority party, as appointed by the senate majority leader;
new text end

new text begin (4) the commissioner of human services, or the commissioner's designee, and two
additional representatives from the Department of Human Services;
new text end

new text begin (5) two county commissioners appointed by the Association of Minnesota Counties;
and
new text end

new text begin (6) two county representatives appointed by the Minnesota Association of County
Social Service Administrators.
new text end

new text begin (c) Administrative support to the council may be provided by the Association of
Minnesota Counties and affiliates.
new text end

new text begin (d) Legislative research support may be provided by state legislative staff as
requested by the council.
new text end

new text begin (e) Member agencies and associations are responsible for initial and subsequent
appointments to the council.
new text end

new text begin Subd. 2. new text end

new text begin Council duties. new text end

new text begin (a) The council shall:
new text end

new text begin (1) provide oversight of the administration of the redesign;
new text end

new text begin (2) recommend the approval of waivers from statutory requirements, administrative
rules, and standards necessary to achieve the requirements of the agreements under
section 402A.40, subdivision 7, paragraph (b), to the commissioner of human services
or other appropriate entity, for counties certified as service delivery authorities under
section 402A.40;
new text end

new text begin (3) recommend approval of the agreements in section 402A.40, subdivision 7,
paragraph (b), to the commissioner of human services;
new text end

new text begin (4) recommend certification of a county or consortium of counties as a service
delivery authority to the commissioner of human services;
new text end

new text begin (5) recommend approval of shared services arrangements under section 402A.40,
subdivision 5;
new text end

new text begin (6) form work groups as necessary to carry out the duties of the council under the
redesign; and
new text end

new text begin (7) establish a process for the mediation of conflicts among participating counties or
between participating counties and the commissioner of human services.
new text end

new text begin (b) In order to carry out the provisions of the redesign, and to effectuate the
agreements established under section 402A.40, subdivision 7, paragraph (b), the
commissioner of human services shall exercise authority under section 256.01, subdivision
2, paragraph (l), including seeking all necessary waivers. The commissioner of human
services has authority to approve shared service arrangements as defined in section
402A.40, subdivision 5.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

new text begin [402A.40] DESIGNATION OF SERVICE DELIVERY AUTHORITY.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A county or consortium of counties may establish a
service delivery authority under the redesign to engage in the delivery of human services,
or other services as appropriate.
new text end

new text begin Subd. 2. new text end

new text begin Duties. new text end

new text begin (a) The service delivery authority shall:
new text end

new text begin (1) carry out the responsibilities required of local agencies under chapter 393 and
human service boards under chapter 402;
new text end

new text begin (2) manage the public resources devoted to human services and other public services
delivered or purchased by the counties that are subsidized or regulated by the Department
of Human Services under chapter 245 or 267;
new text end

new text begin (3) employ staff to assist in carrying out the redesign;
new text end

new text begin (4) develop and maintain a continuity of operations plan to ensure the continued
operation or resumption of essential human services functions in the event of any business
interruption according to local, state, and federal emergency planning requirements;
new text end

new text begin (5) receive and expend funds received for the redesign;
new text end

new text begin (6) plan and deliver services directly or through contract with other governmental
or nongovernmental providers;
new text end

new text begin (7) rent, purchase, sell, and otherwise dispose of real and personal property as
necessary to carry out the redesign; and
new text end

new text begin (8) carry out any other service designated as a responsibility of a county.
new text end

new text begin (b) Each service delivery authority certified under subdivision 3 shall designate a
single administrative structure that has the powers and duties assigned to the service
delivery authority effective January 1, 2013, and annually thereafter.
new text end

new text begin Subd. 3. new text end

new text begin Certification of service delivery authority. new text end

new text begin The council shall recommend
certification of a county or consortium of counties as a service delivery authority to the
commissioner of human services if:
new text end

new text begin (1) the conditions in subdivision 6, paragraph (a), clauses (1) to (3), are met; and
new text end

new text begin (2) the county or consortium of counties are:
new text end

new text begin (i) a single county with a population of 55,000 or more;
new text end

new text begin (ii) a consortium of counties with a total combined population of 55,000 or more and
the counties comprising the consortium are in reasonable geographic proximity;
new text end

new text begin (iii) four or more counties in reasonable geographic proximity without regard to
population; or
new text end

new text begin (iv) a single county or consortium of counties meeting the criteria for exemption
from minimum population standards in this subdivision and subdivision 4.
new text end

new text begin Subd. 4. new text end

new text begin Multicounty service delivery authority. new text end

new text begin Two or more counties meeting
the criteria in subdivision 3 may, by resolution of their county boards of commissioners,
establish a service delivery authority having the composition, powers, and duties agreed
upon. These counties may, by agreement entered into through action of their bodies,
jointly or cooperatively exercise any power common to the contracting parties in carrying
out their duties under current law, including, but not limited to, chapters 245 to 267 and
393 and 402. Participating county boards shall establish acceptable ways of apportioning
the cost of the services. The council may recommend that the commissioner of human
services exempt a multicounty service delivery authority from the minimum population
standard in subdivision 3 if that multicounty service delivery authority can demonstrate
that it can otherwise meet the requirements of the redesign.
new text end

new text begin Subd. 5. new text end

new text begin Single county service delivery authority. new text end

new text begin For counties with populations
over 55,000, the board of county commissioners may be the service delivery authority
and retain existing authority under law. Counties with populations over 55,000 that serve
as their own service delivery authority may enter into shared services arrangements with
other service delivery authorities or smaller counties. These shared services arrangements
may include, but are not limited to, human services, corrections, public health, veterans
planning, human resources, program development and operations, training, technical
systems, joint purchasing, and consultative services or direct services to transient, special
needs, or low-incidence populations. The council may recommend that the commissioner
of human services exempt a single county service delivery authority from the minimum
population standard in this subdivision if that service delivery authority can demonstrate
that it can otherwise meet the requirements of the redesign.
new text end

new text begin Subd. 6. new text end

new text begin Duties applicable to all counties. new text end

new text begin (a) A county shall:
new text end

new text begin (1) by January 1, 2010, and annually thereafter, indicate to the council, through a
board resolution, the county's intent to form or join a service delivery authority;
new text end

new text begin (2) by June 1, 2011, and annually thereafter, submit for approval to the council, a
board resolution forming the service delivery authority, including the names of other
counties anticipated to be members of the service delivery authority, if any;
new text end

new text begin (3) by June 1, 2012, and annually thereafter, submit for approval to the council, a
plan that includes a contractual agreement for the service delivery authority including
what shared services are to be provided to other service delivery authorities or counties, if
applicable; and
new text end

new text begin (4) by January 1, 2013, and annually thereafter, meet measurable goals as defined in
the performance agreement under subdivision 7, paragraph (b).
new text end

new text begin (b) After June 1, 2013, the commissioner of human services may submit to the
council a recommendation of remedies for performance improvement for any service
delivery authority not meeting the measurable goals agreed upon in performance
agreements under subdivision 7, paragraph (b). This provision does not preclude other
powers of the commissioner of human services to remedy county performance issues in a
county or counties not certified as a service delivery authority.
new text end

new text begin Subd. 7. new text end

new text begin New state-county governance framework. new text end

new text begin (a) Nothing in this chapter
precludes local governments from utilizing sections 465.81 to 465.82 to establish
procedures for local governments to merge, with the consent of the voters. Any agreement
under subdivision 4 or 5 must be governed by this chapter. The county boards of
commissioners shall approve the agreement and shall determine the proportional financial
responsibility of each county to support the programs and services of the service delivery
authority. Nothing in this chapter limits the authority of a county board to enter into
contractual agreements for services not covered by the provisions of the redesign with
other agencies or with other units of government.
new text end

new text begin (b) The state-county governance framework for service delivery authorities must
include the following binding agreements:
new text end

new text begin (1) a governance agreement which defines the respective authority, powers, roles
and responsibilities of the state and service delivery authorities under the redesign. As part
of the governance agreement, the service delivery authority shall be held accountable for
achieving measurable goals as defined in the performance agreement under clause (2).
The service delivery authorities must be granted waivers, as necessary, to ensure greater
local control and flexibility to determine the most cost-effective means of achieving
specified measurable goals;
new text end

new text begin (2) a performance agreement which defines measurable goals in key operational
areas that the service delivery authority is expected to achieve. This agreement must
identify dependencies and other requirements necessary for the service delivery
authority to achieve the measurable goals as defined in the performance agreement. The
dependencies and requirements may include, but are not limited to:
new text end

new text begin (i) specific resource commitments of the state and the service delivery authority; and
new text end

new text begin (ii) funding or expenditure flexibility, which may include, but are not limited to,
exemptions to the requirements in section 245.4835 and 245.714; and
new text end

new text begin (3) a service level agreement which specifies the expectations and responsibilities
of the state and the service delivery authority regarding administrative and information
technology support necessary to achieve the measurable goals specified in the performance
agreement under clause (2).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

new text begin [402A.50] AID AND INCENTIVES TO COUNTIES.
new text end

new text begin Subdivision 1. new text end

new text begin Levy limits. new text end

new text begin Notwithstanding any other law to the contrary,
expenditures and activities carried out under the redesign are exempt from levy limits.
new text end

new text begin Subd. 2. new text end

new text begin Private sector funding. new text end

new text begin The council may support stakeholder agencies,
if not otherwise prohibited by law, to separately or jointly seek and receive funds to
provide expert technical assistance to the council, the council's workgroup, and any
sub-workgroups for executing the provisions of the redesign.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7. new text begin APPROPRIATION.
new text end

new text begin $2,000,000 is appropriated for the biennium beginning July 1, 2009, from the
general fund, to the Council on State-County Results, Accountability, and Service
Delivery Redesign, for the purposes of the State-County Results, Accountability, and
Service Delivery Redesign under Minnesota Statutes, sections 402A.01 to 402A.50. The
council shall establish a methodology for distributing funds to certified service delivery
authorities for the purposes of carrying out the requirements of the redesign.
new text end

ARTICLE 3

COMMISSION ON INNOVATION

Section 1. new text begin COMMISSION ON INNOVATION; APPROPRIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Commission on Innovation. new text end

new text begin By October 1, 2009, the Office of
Grants Management shall establish the Commission on Innovation. The commission shall
be comprised of nine members. Five members shall be appointed by the governor. Two
members shall be appointed by the speaker of the house. Two members shall be appointed
by the Senate Rules and Administration Subcommittee on Committees.
new text end

new text begin Subd. 2. new text end

new text begin Duties; report. new text end

new text begin The Commission on Innovation shall study and make
recommendations on improving collaborative activities between the state, nonprofit
entities, and the private sector. The commission shall report its recommendation to the
legislature by January 15, 2010.
new text end

new text begin Subd. 3. new text end

new text begin Grant study and program. new text end

new text begin The Commission on Innovation shall make
recommendations on a process for awarding grants from the community solutions grant
fund established under section 2, subdivision 1, to eligible not-for-profit organizations
to expand successful initiatives that have demonstrated measurable, positive results in
addressing high-priority community issues. In developing the recommendations, the
Commission on Innovation shall consider methods to consider initiatives that can be
duplicated by others such that the programmatic approach can be brought to regional
or statewide scale. The Commission on Innovation shall also consider methods to
encourage initiatives that will become self-sustaining without state funds within five
years. The Commission on Innovation shall consider two to four high-priority issue areas
as the initial focus of the community solutions grants. The commission shall report its
recommendations by January 15, 2010.
new text end

new text begin Subd. 4. new text end

new text begin Appropriation. new text end

new text begin $200,000 is transferred in fiscal year 2010 only from the
community solutions fund to the commission for the study and report required by this
section. The appropriation is available until expended or until the commission expires.
new text end

new text begin Subd. 5. new text end

new text begin Expiration. new text end

new text begin The commission sunsets 30 days after the required report in
subdivision 2 is delivered to the legislature.
new text end

Sec. 2. new text begin COMMUNITY SOLUTIONS GRANTS; APPROPRIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Community solutions grant fund. new text end

new text begin A community solutions
grant fund is established within the Department of Administration, Office of Grants
Management, to receive funds as provided for in subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin In fiscal year 2010, $200,000 shall be appropriated to the
community solutions grant fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2009, and sunsets on July
1, 2019.
new text end