1.1 	A bill for an act
1.2 	relating to human services; making changes to the State-County Results, 
1.3 	Accountability, and Service Delivery Redesign Act; specifying public employee 
1.4 	status for service delivery units;amending Minnesota Statutes 2008, section 
1.5 	179A.03, subdivision 15; Minnesota Statutes 2009 Supplement, sections 
1.6 	402A.01; 402A.10, subdivision 5; 402A.15; 402A.18; 402A.20; proposing 
1.7 	coding for new law in Minnesota Statutes, chapters 179A; 402A; repealing 
1.8 	Minnesota Statutes 2009 Supplement, sections 402A.30; 402A.45.
1.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10 	Section 1. Minnesota Statutes 2008, section 179A.03, subdivision 15, is amended to 
1.11 	read:
1.12 		Subd. 15.Public employer or employer. "Public employer" or "employer" means:
1.13 	(a) the state of Minnesota for employees of the state not otherwise provided for in 
1.14 	this subdivision or section 179A.10 for executive branch employees;
1.15 	(b) the Board of Regents of the University of Minnesota for its employees;
1.16 	(c) the state court administrator for court employees;
1.17 	(d) the state Board of Public Defense for its employees;
1.18 	(e) Hennepin Healthcare System, Inc.; 
1.19 	(f) a service delivery authority created under chapter 402A; and
1.20 	(f) (g) notwithstanding any other law to the contrary, the governing body of a 
1.21 	political subdivision or its agency or instrumentality which has final budgetary approval 
1.22 	authority for its employees. However, the views of elected appointing authorities who have 
1.23 	standing to initiate interest arbitration, and who are responsible for the selection, direction, 
1.24 	discipline, and discharge of individual employees shall be considered by the employer in 
1.25 	the course of the discharge of rights and duties under sections 179A.01 to 179A.25.
2.1 	When two or more units of government subject to sections 179A.01 to 179A.25
2.2 	undertake a project or form a new agency under law authorizing common or joint action, 
2.3 	the employer is the governing person or board of the created agency. The governing 
2.4 	official or body of the cooperating governmental units shall be bound by an agreement 
2.5 	entered into by the created agency according to sections 179A.01 to 179A.25.
2.6 	"Public employer" or "employer" does not include a "charitable hospital" as defined 
2.7 	in section 179.35, subdivision 2.
2.8 	Nothing in this subdivision diminishes the authority granted pursuant to law to an 
2.9 	appointing authority with respect to the selection, direction, discipline, or discharge of 
2.10 	an individual employee if this action is consistent with general procedures and standards 
2.11 	relating to selection, direction, discipline, or discharge which are the subject of an 
2.12 	agreement entered into under sections 179A.01 to 179A.25.

2.13 	Sec. 2. [179A.50] SERVICE DELIVERY AUTHORITY UNITS.
2.14 	(a) Service delivery authorities created under chapter 402A shall be considered 
2.15 	public employers under section 179A.03, subdivision 15.
2.16 	(b) Employees of counties that form or are required to become part of a service 
2.17 	delivery authority shall become employees of the new service delivery authority.
2.18 	(c) If a majority of counties in a newly formed service delivery authority were 
2.19 	certified as represented by an employee organization, the employees of the new service 
2.20 	delivery authority shall continue to be certified and represented by the employee 
2.21 	organization that represented them when they were employed by the counties.
2.22 	(d) Until the service delivery authority negotiates a new collective bargaining 
2.23 	agreement with the employee organizations, the collective bargaining agreements in effect 
2.24 	prior to the creation of the service delivery authority shall remain in effect for employees 
2.25 	previously covered by the agreements.

2.26 	Sec. 3. Minnesota Statutes 2009 Supplement, section 402A.01, is amended to read:
2.27 	402A.01 CITATION.
2.28 	Sections 402A.01 to 402A.50 may be cited as the "State-County Results, 
2.29 	Accountability, and Service Delivery Reform Redesign Act."

2.30 	Sec. 4. Minnesota Statutes 2009 Supplement, section 402A.10, subdivision 5, is 
2.31 	amended to read:
2.32 		Subd. 5.Service delivery authority. "Service delivery authority" means a single 
2.33 	county, or group consortium of counties operating by execution of a joint powers 
3.1 	agreement under section 471.59 or other contractual agreement, that has voluntarily 
3.2 	chosen by resolution of the county board of commissioners to participate in the redesign 
3.3 	under this chapter or has been assigned by the commissioner pursuant to section 402A.18.

3.4 	Sec. 5. Minnesota Statutes 2009 Supplement, section 402A.15, is amended to read:
3.5 	402A.15 STEERING COMMITTEE ON PERFORMANCE AND OUTCOME 
3.6 	REFORMS.
3.7 		Subdivision 1.Duties. (a) The Steering Committee on Performance and Outcome 
3.8 	Reforms shall develop a uniform process to establish and review performance and outcome 
3.9 	standards for all essential human services based on the current level of resources available, 
3.10 	and to shall develop appropriate reporting measures and a uniform accountability process 
3.11 	for responding to a county's or human service delivery authority's failure to make adequate 
3.12 	progress on achieving performance measures. The accountability process shall focus on 
3.13 	the performance measures rather than inflexible implementation requirements.
3.14 	(b) The steering committee shall:
3.15 	(1) by November 1, 2009, establish an agreed-upon list of essential services;
3.16 	(2) by February 15, 2010, develop and recommend to the legislature a uniform, 
3.17 	graduated process, in addition to the remedies identified in section 402A.18, for responding 
3.18 	to a county's failure to make adequate progress on achieving performance measures; and
3.19 	(3) by December 15, 2012, for each essential service, make recommendations 
3.20 	to the legislature regarding (1) (i) performance measures and goals based on those 
3.21 	measures for each essential service, (2) and (ii) a system for reporting on the performance 
3.22 	measures and goals, and (3) appropriate resources, including funding, needed to achieve 
3.23 	those performance measures and goals. The resource recommendations shall take into 
3.24 	consideration program demand and the unique differences of local areas in geography and 
3.25 	the populations served. Priority shall be given to services with the greatest variation in 
3.26 	availability and greatest administrative demands. By January 15 of each year starting 
3.27 	January 15, 2011, the steering committee shall report its recommendations to the governor 
3.28 	and legislative committees with jurisdiction over health and human services. As part of its 
3.29 	report, the steering committee shall, as appropriate, recommend statutory provisions, rules 
3.30 	and requirements, and reports that should be repealed or eliminated.
3.31 	(c) As far as possible, the performance measures, reporting system, and funding 
3.32 	shall be consistent across program areas. The development of performance measures shall 
3.33 	consider the manner in which data will be collected and performance will be reported. 
3.34 	The steering committee shall consider state and local administrative costs related to 
3.35 	collecting data and reporting outcomes when developing performance measures. The 
4.1 	steering committee shall correlate the performance measures and goals to available levels 
4.2 	of resources, including state and local funding. The steering committee shall also identify 
4.3 	and incorporate federal performance measures in its recommendations for those program 
4.4 	areas where federal funding is contingent on meeting federal performance standards. The 
4.5 	steering committee shall take into consideration that the goal of implementing changes 
4.6 	to program monitoring and reporting the progress toward achieving outcomes is to 
4.7 	significantly minimize the cost of administrative requirements and to allow funds freed 
4.8 	by reduced administrative expenditures to be used to provide additional services, allow 
4.9 	flexibility in service design and management, and focus energies on achieving program 
4.10 	and client outcomes.
4.11 	(d) In making its recommendations, the steering committee shall consider input from 
4.12 	the council established in section 402A.20. The steering committee shall review the 
4.13 	measurable goals established in a memorandum of understanding entered into under 
4.14 	section 402A.30, subdivision 2, paragraph (b), and consider whether they may be applied 
4.15 	as statewide performance outcomes.
4.16 	(e) The steering committee shall form work groups that include persons who provide 
4.17 	or receive essential services and representatives of organizations who advocate on behalf 
4.18 	of those persons.
4.19 	(f) By December 15, 2009, the steering committee shall establish a three-year 
4.20 	schedule for completion of its work. The schedule shall be published on the Department of 
4.21 	Human Services Web site and reported to the legislative committees with jurisdiction over 
4.22 	health and human services. In addition, the commissioner shall post quarterly updates on 
4.23 	the progress of the steering committee on the Department of Human Services Web site.
4.24 		Subd. 2.Composition. (a) The steering committee shall include:
4.25 	(1) the commissioner of human services, or designee, and two additional 
4.26 	representatives of the department;
4.27 	(2) two county commissioners, representative of rural and urban counties, selected 
4.28 	by the Association of Minnesota Counties;
4.29 	(3) two county directors of human services, representative of rural and urban 
4.30 	counties, selected by the Minnesota Association of County Social Service Administrators; 
4.31 	and
4.32 	(4) three clients or client advocates representing different populations receiving 
4.33 	services from the Department of Human Services, who are appointed by the commissioner.
4.34 	(b) The commissioner, or designee, and a county commissioner shall serve as 
4.35 	cochairs of the committee. The committee shall be convened within 60 days of May 
4.36 	15, 2009.
5.1 	(c) State agency staff shall serve as informational resources and staff to the steering 
5.2 	committee. Statewide county associations may assemble county program data as required.
5.3 	(d) To promote information sharing and coordination between the steering committee 
5.4 	and council, one of the county representatives from paragraph (a), clause (2), and one of the 
5.5 	county representatives from paragraph (a), clause (3), must also serve as a representative 
5.6 	on the council under section 402A.20, subdivision 1, paragraph (b), clause (5) or (6).

5.7 	Sec. 6. Minnesota Statutes 2009 Supplement, section 402A.18, is amended to read:
5.8 	402A.18 COMMISSIONER POWER TO REMEDY FAILURE TO MEET 
5.9 	PERFORMANCE OUTCOMES.
5.10 		Subdivision 1.Underperforming county; specific service. If the commissioner 
5.11 	determines that a county or service delivery authority is deficient in achieving minimum 
5.12 	performance outcomes for a specific essential service, the commissioner may impose the 
5.13 	following remedies and adjust state and federal program allocations accordingly:
5.14 	(1) voluntary incorporation of the administration and operation of the specific 
5.15 	essential service with an existing service delivery authority or another county. A 
5.16 	service delivery authority or county incorporating an underperforming county shall 
5.17 	not be financially liable for the costs associated with remedying performance outcome 
5.18 	deficiencies;
5.19 	(2) mandatory incorporation of the administration and operation of the specific 
5.20 	essential service with an existing service delivery authority or another county. A 
5.21 	service delivery authority or county incorporating an underperforming county shall 
5.22 	not be financially liable for the costs associated with remedying performance outcome 
5.23 	deficiencies; or 
5.24 	(3) transfer of authority for program administration and operation of the specific 
5.25 	essential service to the commissioner.
5.26 		Subd. 2.Underperforming county; more than one-half of service services. If 
5.27 	the commissioner determines that a county or service delivery authority is deficient in 
5.28 	achieving minimum performance outcomes for more than one-half of the defined essential 
5.29 	service services, the commissioner may impose the following remedies:
5.30 	(1) voluntary incorporation of the administration and operation of the specific
5.31 	essential service services with an existing service delivery authority or another county. 
5.32 	A service delivery authority or county incorporating an underperforming county shall 
5.33 	not be financially liable for the costs associated with remedying performance outcome 
5.34 	deficiencies;
6.1 	(2) mandatory incorporation of the administration and operation of the specific
6.2 	essential service services with an existing service delivery authority or another county. 
6.3 	A service delivery authority or county incorporating an underperforming county shall 
6.4 	not be financially liable for the costs associated with remedying performance outcome 
6.5 	deficiencies; or 
6.6 	(3) transfer of authority for program administration and operation of the specific
6.7 	essential service services to the commissioner.
6.8 		Subd. 2a.Financial responsibility of underperforming county. A county subject 
6.9 	to remedies under subdivision 1 or 2 shall provide to the entity assuming administration of 
6.10 	the essential service or essential services the amount of nonfederal and nonstate funding 
6.11 	needed to remedy performance outcome deficiencies.
6.12 		Subd. 3.Conditions prior to imposing remedies. Before the commissioner may 
6.13 	impose the remedies authorized under this section, the following conditions must be met:
6.14 	(1) the county or service delivery authority determined by the commissioner 
6.15 	to be deficient in achieving minimum performance outcomes has the opportunity, in 
6.16 	coordination with the council, to develop a program outcome improvement plan. The 
6.17 	program outcome improvement plan must be developed no later than six months from the 
6.18 	date of the deficiency determination; and
6.19 	(2) the council has conducted an assessment of the program outcome improvement 
6.20 	plan to determine if the county or service delivery authority has made satisfactory 
6.21 	progress toward performance outcomes and has made a recommendation about remedies 
6.22 	to the commissioner. The review assessment and recommendation must be made to the 
6.23 	commissioner within 12 months from the date of the deficiency determination.

6.24 	Sec. 7. Minnesota Statutes 2009 Supplement, section 402A.20, is amended to read:
6.25 	402A.20 COUNCIL.
6.26 		Subdivision 1.Council. (a) The State-County Results, Accountability, and Service 
6.27 	Delivery Redesign Council is established. Appointed council members must be appointed 
6.28 	by their respective agencies, associations, or governmental units by November 1, 2009. 
6.29 	The council shall be cochaired by the commissioner of human services, or designee, and a 
6.30 	county representative from paragraph (b), clause (4) or (5), appointed by the Association 
6.31 	of Minnesota Counties. Recommendations of the council must be approved by a majority 
6.32 	of the voting council members. The provisions of section 15.059 do not apply to this 
6.33 	council, and this council does not expire.
6.34 	(b) The council must consist of the following members:
7.1 	(1) two legislators appointed by the speaker of the house, one from the minority 
7.2 	and one from the majority;
7.3 	(2) two legislators appointed by the Senate Rules Committee, one from the majority 
7.4 	and one from the minority;
7.5 	(3) the commissioner of human services, or designee, and three employees from 
7.6 	the department;
7.7 	(4) two county commissioners appointed by the Association of Minnesota Counties;
7.8 	(5) two county representatives appointed by the Minnesota Association of County 
7.9 	Social Service Administrators; 
7.10 	(6) one representative appointed by AFSCME as a nonvoting member Council 5 and 
7.11 	one representative appointed by AFSCME Council 65 as nonvoting members; and
7.12 	(7) one representative appointed by the Teamsters as a nonvoting member.
7.13 	(c) Administrative support to the council may be provided by the Association of 
7.14 	Minnesota Counties and affiliates.
7.15 	(d) Member agencies and associations are responsible for initial and subsequent 
7.16 	appointments to the council.
7.17 		Subd. 2.Council duties. The council shall:
7.18 	(1) provide review of the service delivery redesign process, including proposed 
7.19 	memoranda of understanding to establish a service delivery authority to conduct and 
7.20 	administer experimental projects to test new methods and procedures of delivering 
7.21 	services;
7.22 	(2) certify, in accordance with section 402A.30, subdivision 4, the formation of 
7.23 	a service delivery authority, including the memorandum of understanding in section 
7.24 	402A.30, subdivision 2, paragraph (b);
7.25 	(3) ensure the consistency of the memorandum of understanding entered into 
7.26 	under section 402A.30, subdivision 2, paragraph (b), with the performance standards 
7.27 	recommended by the steering committee and enacted by the legislature;
7.28 	(4) (2) ensure the consistency of the memorandum of understanding, to the extent 
7.29 	appropriate, or with other memorandum of understanding entered into by other service 
7.30 	delivery authorities; 
7.31 	(3) review and make recommendations on applications from a service delivery 
7.32 	authority for waivers of statutory or rule program requirements that are needed for 
7.33 	flexibility to determine the most cost-effective means of achieving specified measurable 
7.34 	goals in a redesign of human services delivery;
7.35 	(5) (4) establish a process to take public input on the service delivery framework 
7.36 	specified in the memorandum of understanding in section 402A.30, subdivision 2, 
8.1 	paragraph (b) scope of essential services over which a service delivery authority has 
8.2 	jurisdiction;
8.3 	(6) (5) form work groups as necessary to carry out the duties of the council under the 
8.4 	redesign;
8.5 	(7) (6) serve as a forum for resolving conflicts among participating counties or 
8.6 	between participating counties and the commissioner of human services, provided nothing 
8.7 	in this section is intended to create a formal binding legal process;
8.8 	(8) (7) engage in the program improvement process established in section 402A.18, 
8.9 	subdivision 3; and
8.10 	(9) (8) identify and recommend incentives for counties to participate in human 
8.11 	services service delivery authorities.
8.12 		Subd. 3.Program evaluation. By December 15, 2014, the council shall request 
8.13 	consideration by the legislative auditor for a reevaluation under section 3.971, subdivision 
8.14 	7, of those aspects of the program evaluation of human services administration reported 
8.15 	in January 2007 affected by this chapter.

8.16 	Sec. 8. [402A.35] DESIGNATION OF SERVICE DELIVERY AUTHORITY.
8.17 		Subdivision 1.Requirements for establishing a service delivery authority. (a) A 
8.18 	county or consortium of counties is eligible to establish a service delivery authority if:
8.19 	(1) the county or consortium of counties are:
8.20 	(i) a single county with a population of 55,000 or more;
8.21 	(ii) a consortium of counties with a total combined population of 55,000 or more and 
8.22 	the counties comprising the group are in reasonable geographic proximity; or
8.23 	(iii) a consortium of four or more counties in reasonable geographic proximity 
8.24 	without regard to population.
8.25 	The council may recommend that the commissioner of human services exempt a 
8.26 	single county or multicounty consortium from the minimum population standard if the 
8.27 	county or group of counties can demonstrate that it can otherwise meet the requirements 
8.28 	of this chapter.
8.29 	(b) A service delivery authority shall:
8.30 	(1) comply with current state and federal law, including any existing federal or state 
8.31 	performance measures and performance measures under section 402A.15 when they are 
8.32 	enacted into law, except where waivers are approved by the commissioner. Nothing 
8.33 	in this subdivision requires the establishment of performance measures under section 
8.34 	402A.15 prior to a service delivery authority participating in the service delivery redesign 
8.35 	under this chapter;
9.1 	(2) define the scope of essential services over which the service delivery authority 
9.2 	has jurisdiction;
9.3 	(3) designate a single administrative structure to oversee the delivery of those 
9.4 	services included in a proposal for a redesigned service or services and identify a single 
9.5 	administrative agent for purposes of contact and communication with the department;
9.6 	(4) identify the waivers from statutory or rule program requirements that are needed 
9.7 	to ensure greater local control and flexibility to determine the most cost effective means of 
9.8 	achieving specified measurable goals that the participating service delivery authority is 
9.9 	expected to achieve;
9.10 	(5) set forth a reasonable level of targeted reductions in overhead and administrative 
9.11 	costs for each service delivery authority participating in the service delivery redesign;
9.12 	(6) set forth the terms under which a county may withdraw from participation.
9.13 	(c) Once a county or consortium of counties establishes a service delivery authority, 
9.14 	no county that is a member of the service delivery authority may participate as a member 
9.15 	of any other service delivery authority. The service delivery authority may allow an 
9.16 	additional county or counties to join the service delivery authority subject to the approval 
9.17 	of the council and the commissioner.
9.18 	(d) Nothing in this chapter precludes local governments from utilizing sections 
9.19 	465.81 and 465.82 to establish procedures for local governments to merge, with the 
9.20 	consent of the voters. Nothing in this chapter limits the authority of a county board to enter 
9.21 	into contractual agreements for services not covered by the provisions of a memorandum 
9.22 	of understanding establishing a service delivery authority with other agencies or with 
9.23 	other units of government.
9.24 		Subd. 2.Duties. The service delivery authority shall:
9.25 	(1) within the scope of essential services set forth in the memorandum of 
9.26 	understanding establishing the authority, carry out the responsibilities required of local 
9.27 	agencies under chapter 393 and human services boards under chapter 402;
9.28 	(2) manage the public resources devoted to human services and other public services 
9.29 	delivered or purchased by the counties that are subsidized or regulated by the Department 
9.30 	of Human Services under chapters 245 to 261;
9.31 	(3) employ staff to assist in carrying out its duties;
9.32 	(4) develop and maintain a continuity of operations plan to ensure the continued 
9.33 	operation or resumption of essential human services functions in the event of any business 
9.34 	interruption according to local, state, and federal emergency planning requirements;
9.35 	(5) receive and expend funds received for the redesign process under the 
9.36 	memorandum of understanding;
10.1 	(6) plan and deliver services directly or through contract with other governmental 
10.2 	or nongovernmental providers;
10.3 	(7) rent, purchase, sell, and otherwise dispose of real and personal property as 
10.4 	necessary to carry out the redesign; and
10.5 	(8) carry out any other service designated as a responsibility of a county.
10.6 		Subd. 3.Process for establishing a service delivery authority. (a) The county or 
10.7 	consortium of counties meeting the requirements of section 402A.30 and proposing to 
10.8 	establish a service delivery authority shall present to the council:
10.9 	(1) in conjunction with the commissioner, a proposed memorandum of understanding 
10.10 	meeting the requirements of subdivision 1, paragraph (b), and outlining:
10.11 	(i) the details of the proposal;
10.12 	(ii) the state and local resources, which may include but are not limited to funding, 
10.13 	administrative and technology support, and other requirements necessary for the service 
10.14 	delivery authority; and
10.15 	(iii) the relief available to the service delivery authority if the resource commitments 
10.16 	identified in item (ii) are not met; and
10.17 	(2) a board resolution from the board of commissioners of each participating county 
10.18 	stating the county's intent to participate.
10.19 	(b) After the council has considered and recommended approval of a proposed 
10.20 	memorandum of understanding, the commissioner may finalize and execute the 
10.21 	memorandum of understanding.
10.22 		Subd. 4.Commissioner authority to seek waivers. The commissioner may use the 
10.23 	authority under section 256.01, subdivision 2, paragraph (l), to grant waivers identified as 
10.24 	part of a proposed service delivery authority under subdivision 1, paragraph (b), clause 
10.25 	(4), except that waivers granted under this section must be approved by the council under 
10.26 	section 402A.20 rather than the Legislative Advisory Committee.

10.27 	Sec. 9.  REPEALER.
 10.28 	Minnesota Statutes 2009 Supplement, sections 402A.30; and 402A.45, are repealed.