HF 1579

1st Engrossment - 87th Legislature (2011 - 2012) Posted on 04/27/2011 04:43pm

A bill for an act
relating to government reform; giving counties authority to provide for the
general welfare; establishing an alternative service delivery pilot program
for waivers; providing for state strategic planning and performance review;
amending Minnesota Statutes 2010, section 375.18, by adding a subdivision;
proposing coding for new law in Minnesota Statutes, chapter 402A; proposing
coding for new law as Minnesota Statutes, chapter 15D.

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

ARTICLE 1

COUNTIES AUTHORIZED TO ACT ON MATTERS OF COUNTY CONCERN

Section 1.

Minnesota Statutes 2010, section 375.18, is amended by adding a
subdivision to read:

new text begin Subd. 16. new text end

new text begin General welfare. new text end

new text begin A county may exercise all powers necessary or fairly
implied by an express delegation by the state of a duty or a grant of power, incident or
essential to the exercise of an express delegation of a duty or a grant of power, and not
expressly denied by or inconsistent with the laws and regulations of the state or the United
States. A county may adopt reasonable ordinances, resolutions, and regulations relating to
its property, affairs, and operations, and provide for the general health, safety, and welfare
of the county. In exercising these powers, a county must not act in conflict or inconsistent
with the powers and duties of other political subdivisions within the county.
new text end

ARTICLE 2

MAGIC ACT

Section 1.

new text begin [402A.60] MINNESOTA ACCOUNTABLE GOVERNMENT
INNOVATION AND COLLABORATION (MAGIC) ACT.
new text end

new text begin Sections 402A.60 to 402A.95 may be cited as the Minnesota Accountable
Government Innovation and Collaboration (MAGIC) Act. It is established to develop and
test alternative models for service delivery by counties, that are focused on performance
measures and outcomes rather than processes for delivering services.
new text end

Sec. 2.

new text begin [402A.70] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin The terms defined in this section apply to sections
402A.60 to 402A.95.
new text end

new text begin Subd. 2. new text end

new text begin County. new text end

new text begin "County" includes a joint powers board of which a county is a
member, and a service delivery authority as defined in section 402A.10, subdivision 5.
new text end

new text begin Subd. 3. new text end

new text begin Pilot project. new text end

new text begin "Pilot project" means a service that a county is providing by
an alternative service delivery method that requires a waiver of or exemption from a law,
rule, or procedure and that is approved under sections 402A.60 to 402A.95.
new text end

new text begin Subd. 4. new text end

new text begin Pilot project coordinator or coordinator. new text end

new text begin "Pilot project coordinator" or
"coordinator" means a member of the governor's staff or a state agency who is designated
by the governor to coordinate pilot projects among state agencies.
new text end

Sec. 3.

new text begin [402A.80] PILOT PROJECT SELECTION PROCESS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope of pilot project program. new text end

new text begin The maximum number of pilot
projects in operation at any time is ten per state agency and two per county. Each pilot
project must be substantively different from any other pilot project.
new text end

new text begin Subd. 2. new text end

new text begin Coordinator's duties. new text end

new text begin The pilot project coordinator is responsible for
general oversight of the pilot project program. Among the coordinator's duties are
ensuring that the maximum number and type of pilot projects is not exceeded. The
coordinator must develop, or assist state agencies in developing, any useful application
forms and procedures for use by applicants and state agencies.
new text end

new text begin Subd. 3. new text end

new text begin County initiation; notice. new text end

new text begin A county may apply to the pilot project
coordinator for permission to implement an alternative service delivery pilot project. The
coordinator must work in conjunction with the commissioner of the appropriate state
agency or agencies. The application at a minimum must include a resolution adopted at a
regular meeting of the county board held after at least two weeks' published notice. The
county must notify the collective bargaining units with which the county has agreements
for advice and comment on the pilot project proposal. The county board must permit
interested parties to provide comments on the proposal before the county board takes
action on the proposed resolution to submit a pilot project for implementation.
new text end

new text begin Subd. 4. new text end

new text begin County business plan. new text end

new text begin The county alternative service delivery business
plan must:
new text end

new text begin (1) identify the service, program, process, or structure at issue;
new text end

new text begin (2) identify the statute, administrative rule, or the law imposing a requirement with
respect to which the waiver or exemption is requested;
new text end

new text begin (3) include a description of the performance measures developed under section 6.91
or other method and outcomes sought, including an explanation of the effect of the waiver
or exemption in accomplishing that outcome;
new text end

new text begin (4) include a description of the means by which the attainment of the outcome
will be measured;
new text end

new text begin (5) specify the proposed date of implementation and expiration for the alternative
service delivery model over a time period not less than 12 months and not more than
36 months;
new text end

new text begin (6) describe the consideration given to intergovernmental cooperation in providing
this service, and an explanation of why the county has elected to proceed independently if
the waiver or exemption is proposed by a single county; and
new text end

new text begin (7) include a contingency plan that allows the county to abandon the pilot project
voluntarily or due to the pilot project reaching its expiration date, and provide for the
service delivery under existing laws and procedures.
new text end

new text begin Subd. 5. new text end

new text begin Review and approval of performance measures; outcome goals. new text end

new text begin The
coordinator and the commissioner of the affected state agency have 60 days to review the
application. The coordinator and the commissioner of the affected state agency may
require changes to the county's performance measures and outcome goals. The coordinator
and the commissioner of the affected state agency must approve the performance measures
and outcome goals before the county may proceed with the pilot project.
new text end

new text begin Subd. 6. new text end

new text begin Review and comment on alternative delivery. new text end

new text begin After the coordinator and
the commissioner of the affected state agency have approved the performance measures
and outcome goals, they must review the county's plan to implement its alternative
service delivery pilot project. The coordinator and the commissioner of the affected state
agency may comment on the plan and recommend changes. The county may adopt the
recommended changes or explain in writing to the coordinator and the commissioner
of the affected state agency within 30 days why it is not adopting the changes in the
implementation.
new text end

new text begin Subd. 7. new text end

new text begin No prejudice or violation of rights. new text end

new text begin Before the coordinator and the
commissioner of the affected state agency approve an alternative service delivery pilot
project, they and the county must determine that any proposed waiver or suspension of
state laws, rules, or administrative procedures will not prejudice a substantial legal right of
any person, violate due process or any other state or federal law, or jeopardize state plan
agreements with the federal government and related federal funding.
new text end

new text begin Subd. 8. new text end

new text begin Modifications. new text end

new text begin At a county's request, the coordinator and commissioner
for each affected state agency may approve modifications to the county's pilot project.
The coordinator and commissioner may also submit recommended modifications in
writing during the term of the pilot project, but a county is not required to implement
the modifications.
new text end

Sec. 4.

new text begin [402A.90] CANCELLATION OF PILOT PROJECT.
new text end

new text begin A county may abandon a pilot project if it determines it will not meet the outcomes
identified. It must follow procedures identified in its business plan to abandon the project
and provide for the service delivery under existing laws and procedures.
new text end

new text begin The coordinator, in consultation with the commissioner of any affected state agency,
may cancel a county's authority to continue operating its pilot project if the coordinator
determines that the county is not operating in compliance with its business plan.
new text end

Sec. 5.

new text begin [402A.95] EVALUATION AND REPORT.
new text end

new text begin Subdivision 1. new text end

new text begin County report. new text end

new text begin Each county participating in the alternative service
delivery pilot project program must provide to the coordinator and the commissioner
of each affected state agency an annual report on its experience to date with the pilot
project. The report is due by December 15. The report must include information on
the services involved, the performance measures and outcome goals, what waivers or
exemptions were sought and granted, whether the pilot project was modified and why, the
successes and failures, costs, savings, and any other information the county, coordinator,
or commissioner determine is useful in evaluating the program. A final report is due
within three months of the county concluding its pilot project.
new text end

new text begin Subd. 2. new text end

new text begin Report to governor and legislature. new text end

new text begin By January 15 each year, the
coordinator must compile the county reports into one report to the governor, legislative
leaders, and the chairs and ranking minority members of the legislative committees with
jurisdiction over policy and finance related to state government operations, taxes, and the
program areas in which pilot projects have been implemented. The report must also list all
active pilot projects and their expiration dates.
new text end

Sec. 6. new text begin EFFECTIVE DATE.
new text end

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

ARTICLE 3

MINNESOTA NORTHSTAR COUNCIL

Section 1.

new text begin [15D.01] PURPOSE.
new text end

new text begin The Minnesota Action/Accountability Plan recognizes that the long-term success
and high quality of life of Minnesota will depend on a dynamic approach to governance
that brings public officials and citizens together to set a clear vision for the state's future
built on a shared vision that is based upon a foundation of planning, performance
management, accountability, and empowerment. This requires that the state create a
strategic plan, that it innovates in the delivery of public services, and that it measures its
success in producing superior results for the citizens of the state. The provisions of this
chapter shall be accomplished by the state legislature, the governor's office, and state
agencies within existing appropriations.
new text end

Sec. 2.

new text begin [15D.02] MINNESOTA NORTHSTAR COUNCIL.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner of management and budget must
establish and convene the Minnesota Northstar Council to develop a state strategic plan
which will include: (1) a mission statement for the state; (2) up to ten policy goals; and (3)
up to 100 strategic performance measures.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin (a) The Minnesota Northstar Council shall consist of 17
members and shall be led by an executive committee made up of the following members:
new text end

new text begin (1) two members appointed by the governor;
new text end

new text begin (2) one member appointed by the speaker of the house;
new text end

new text begin (3) one member appointed by the minority leader of the house;
new text end

new text begin (4) one member appointed by the majority leader of the senate; and
new text end

new text begin (5) one member appointed by the minority leader of the senate.
new text end

new text begin (b) The executive committee must appoint one member representing each of the
following:
new text end

new text begin (1) private business;
new text end

new text begin (2) organized labor;
new text end

new text begin (3) nonprofit organizations;
new text end

new text begin (4) foundations;
new text end

new text begin (5) counties;
new text end

new text begin (6) cities;
new text end

new text begin (7) townships;
new text end

new text begin (8) school boards;
new text end

new text begin (9) a member having expertise in performance measurement;
new text end

new text begin (10) a member having expertise in redesign and planning; and
new text end

new text begin (11) a member representing Minnesota youth.
new text end

new text begin (c) The following are nonvoting members of the council:
new text end

new text begin (1) the commissioner of management and budget or the commissioner's designee;
new text end

new text begin (2) a member appointed by the board of regents of the University of Minnesota;
new text end

new text begin (3) the state demographer; and
new text end

new text begin (4) the state economist.
new text end

new text begin (d) The governor shall designate one of the members of the council to serve as
chair. The commissioner of management and budget shall provide staff assistance and
administrative support to the council.
new text end

new text begin (e) Members serve at the pleasure of the appointing authority. Members may be
reimbursed for expenses as provided in section 15.059.
new text end

new text begin (f) All actions of the council must be approved by a majority vote of a quorum of
members appointed under paragraphs (a) and (b) who are present at a meeting. The state
strategic plan must be approved by an affirmative vote of at least nine voting members of
the council, including at least four members of the executive committee.
new text end

Sec. 3.

new text begin [15D.03] STATE STRATEGIC PLAN; STRATEGIC PERFORMANCE
MEASURES.
new text end

new text begin Subdivision 1. new text end

new text begin Development. new text end

new text begin (a) The council, with advice from state departments
and agencies and aligned legislative committee chairs and ranking minority caucus
members, shall develop a state strategic plan that must include: (1) a mission statement for
the state; (2) up to ten policy goals; and (3) up to 100 outcome-based strategic performance
measures. Strategic performance measures are defined as a level of achievement by which
the state and its departments can measure their own progress against internal or external
standards. Strategic performance measures must be outcome-based measures.
new text end

new text begin (b) In developing the state strategic plan, the council shall reach out to gather and
coordinate citizen input from citizens across the state. The council may consider the work
and process of the Minnesota Milestones and the Minnesota Compass in developing
the strategic plan and in the council's other work. The council must consider the use
of social media to solicit input.
new text end

new text begin (c) The council must complete the initial state strategic plan by August 1, 2012.
The council shall review and approve changes to the strategic plan by January of each
even-numbered year. The strategic plan shall undergo continuous review and improvement
by the Northstar Council and the council shall review each of the ten goal areas and
aligned strategic measures at least once every three years.
new text end

new text begin Subd. 2. new text end

new text begin Strategic performance measures. new text end

new text begin The council or Minnesota Management
and Budget must designate an owner for each strategic performance measure that the
council establishes as a means of measuring progress toward accomplishment of the
public policy goals established by the council. The owner is responsible for the tracking
of the measures, the results of the strategic performance measures, and the strategies
implemented to improve performance.
new text end

new text begin Subd. 3. new text end

new text begin Performance improvement plans. new text end

new text begin (a) Upon request of the commissioner
of management and budget, the head of an executive agency must develop a new, or
review an existing, performance improvement plan for each relevant public policy goal
and related aligned strategic performance measures. The performance improvement plan
must propose actions for achieving the goals and measurements created by the Northstar
Council and must include input from aligned legislative committees and their chairs and
Minnesota Management and Budget. In addition, the performance improvement plan may
include a description of how the volunteerism, service, nonprofit, and business sectors will
be engaged in improving the strategic performance measurement.
new text end

new text begin (b) The department or agency officer in charge of a strategic performance
measurement may designate an existing working group or create a new working group
in order to receive feedback, develop the performance improvement plan, and carry out
the performance improvement plan. Working groups may include members from the
public and private sector but must not include vendors that would directly benefit from
contracts with this department or agency.
new text end

Sec. 4.

new text begin [15D.04] AGENCY STRATEGIC PLANS; PERFORMANCE
MANAGEMENT SYSTEMS.
new text end

new text begin Subdivision 1. new text end

new text begin Development of strategic plan. new text end

new text begin Each state agency and department
listed in section 15.06 must work with the aligned legislative committees and their chairs
and Minnesota Management and Budget to prepare a strategic plan using an outcome-based
approach for the agency or department under the commissioner's jurisdiction.
new text end

new text begin Subd. 2. new text end

new text begin Required content. new text end

new text begin Each agency strategic plan must be aligned with the
state strategic plan and must identify key strategic outcomes as priorities for the next
two bienniums and must include:
new text end

new text begin (1) a mission statement for the agency or department;
new text end

new text begin (2) outcome-based strategic performance measures within the state strategic plan
that fall under the jurisdiction of this agency or department;
new text end

new text begin (3) quality and productivity department or agency performance measures for
determining performance for each major activity within the agency's or department's
budget, and that measure the performance of state-mandated services or operations. All
budget items must be assigned an outcome-based goal within the state strategic plan;
new text end

new text begin (4) the methodology used to create the metrics to measure the performance measures;
new text end

new text begin (5) the goal level of performance for each performance measure;
new text end

new text begin (6) if progress has been made from the previous year on each performance measure;
new text end

new text begin (7) a method by which the success or failure to achieve the outcome will be
measured;
new text end

new text begin (8) the executive official or owner responsible for achieving each performance
measure;
new text end

new text begin (9) the agency's or department's plans to achieve the goals and improve the
department's performance within the department or agency plan; and
new text end

new text begin (10) the projected costs for achieving the department or agency strategic plan.
new text end

new text begin Subd. 3. new text end

new text begin Private sector engagement. new text end

new text begin Notwithstanding any other law to the
contrary, the department or agency may collaborate with the volunteerism, nonprofit, and
business sectors to develop the department or agency strategic plan and work with the
council to support stakeholder agencies of this chapter to separately or jointly seek and
receive funds to provide expert technical assistance to the department, agency, council,
participating counties, and any work groups or subwork groups formed to execute
the provisions of this chapter including funding to develop the information resources
infrastructure and to assist counties to design, implement, evaluate, and improve the
innovations under section 402A.60 for MAGIC waivers.
new text end

new text begin Subd. 4. new text end

new text begin Performance improvement plans. new text end

new text begin Upon request of the commissioner
of the agency or department of the aligned strategic plan, employees must develop
a performance improvement plan for each performance measure. The performance
improvement plan must include proposals and actions for achieving the goals and
measurements. In addition, the performance improvement plan may include a description
of how the volunteerism, service, nonprofit, and business sectors will be engaged in
improving performance in that area. The department or agency officer in charge of this
performance measurement may designate an existing working group or create a new
working group in order to receive feedback, develop the performance improvement plan,
and carry out the performance improvement plan. Working groups may include members
from the public and private sector but shall not include vendors that would directly benefit
from contracts with this department or agency.
new text end

new text begin Subd. 5. new text end

new text begin Northstar Council review. new text end

new text begin The Northstar Council must review each
department and agency strategic plan developed under this section. The head of each
agency or department must designate a key contact for each strategic performance
measure. The key contact is responsible for the tracking and results of the performance
measure. The council may make suggestions to the governor on alignment between the
state's and departments' strategic plans.
new text end

new text begin Subd. 6. new text end

new text begin Technical assistance. new text end

new text begin Minnesota Management and Budget shall provide
technical assistance to departments or agencies in the development of the department
or agency plans, performance measures, and outcome-based budgeting. The Office of
Enterprise Technology shall provide technological support in order to track performance
and make information available to the public and shall review the feasibility of utilizing
the Minnesota Compass, and its professional and technical infrastructure, for information
resource development to meet the purposes of this chapter.
new text end

Sec. 5.

new text begin [15D.05] IMPROVING AGENCY OPERATIONS AND PRODUCTIVITY.
new text end

new text begin Subdivision 1. new text end

new text begin Employee objectives and learning. new text end

new text begin Each state department and
agency listed in section 15.06 must align all employee objectives and learning to the state
and agency strategic plans, performance measures, and improvement plans.
new text end

new text begin Subd. 2. new text end

new text begin Report. new text end

new text begin Each state department and agency listed in section 15.06 shall
recommend to the governor and the legislature by January 15 of each even-numbered year
any statutory changes that will improve performance measures.
new text end

new text begin Subd. 3. new text end

new text begin Performance objectives. new text end

new text begin All state managers must set performance
objectives for their units annually to be used in the annual performance appraisals of
their employees. Each employee must have a learning and development plan. The
commissioner of management and budget must conduct annual employee surveys to
gather employee input on how agencies can improve performance.
new text end

new text begin Subd. 4. new text end

new text begin Governor review of agency performance. new text end

new text begin The governor shall hold an
annual performance review with all of the state departments and agencies listed in section
15.06 to ensure that they are making progress in implementing their strategic plans,
performance measures, and improvement plans.
new text end

Sec. 6.

new text begin [15D.06] PUBLIC REPORT CARD ON STATE PERFORMANCE.
new text end

new text begin (a) Minnesota Management and Budget shall propose the form of a Minnesota State
Performance Report Card to the council for approval. The report card must be made
public by January 15, 2013, and be updated each year. The report card must be in a format
easily understood by the public and include:
new text end

new text begin (1) state policy goals;
new text end

new text begin (2) the strategic performance measures;
new text end

new text begin (3) the methodology used to create the metrics to measure the strategic performance
measures;
new text end

new text begin (4) the goal level of performance for each performance measure determined by the
Northstar Council;
new text end

new text begin (5) if progress has been made from the previous year on each performance measure;
new text end

new text begin (6) a statement of value to the taxpayer when possible;
new text end

new text begin (7) a statement relating whether the value has gone down or up from the previous
year based on an indexed rate of change when possible;
new text end

new text begin (8) the executive official responsible for achieving each performance measure; and
new text end

new text begin (9) the legislative committee that has jurisdiction for the department or agency.
new text end

new text begin (b) The commissioner of management and budget shall conduct an annual citizen
survey to determine the citizen perception of achievement of the state's goals and
performance measures where applicable.
new text end

Sec. 7.

new text begin [15D.07] BUDGETING BASED ON STATE'S STRATEGIC PLAN.
new text end

new text begin (a) The governor shall propose a budget based on the state's strategic plan. The
commissioner of management and budget must work with state departments and agencies
in developing their budgets based on the ten public goals in the state strategic plan as well
as the department and agency strategic plans, performance measures, and improvement
plans. The governor's budget proposal must indicate the impact on achieving the state's
goals. The budget must be able to be presented by department or by goal achievement as
outlined in the state strategic plan.
new text end

new text begin (b) Department or agency budget proposals must include integration of performance
measures that allow objective determination of an activity's success in achieving its
strategic goals. Each department or agency shall include in the budget proposal an
explanation of how the budget request promotes the strategic goals, performance
measures, and outcomes outlined in the applicable strategic plan. For each change item in
the budget proposal, the goal or performance measure to be achieved by the cost increase
must be identified along with the method to evaluate whether or not the outcome has been
achieved. The governor's budget must consider proposals to eliminate mandates and
maintenance of effort provisions if alternative forms of service delivery can meet or
exceed identified performance outcomes.
new text end

new text begin (c) Budget targets must be set by goal or outcome achieved rather than by
department. Budget items must be evaluated and ranked within each budget to determine
how well that budget item contributes to the achievement of the state's strategic goals.
Budget items that lead to high outcome achievement must receive high budget priority
and budget items that lead to low outcome achievement must be ranked lower and may
not receive funding.
new text end

new text begin (d) The departments must present biannually to the aligned legislative committees
on the achievement of the state's strategic goals through aligned strategic plans and
performance measures. The chair of the aligned legislative committees may request
updates at any time. The commissioner of management and budget shall work with
department and agency staff to prepare fiscal notes that in addition to financial impacts
also indicate how a bill will impact the achievement levels of the state's and departments'
strategic plans and performance measures.
new text end

new text begin (e) The legislature may use the performance measurement system to mandate
performance measure outcomes for state agencies rather than mandating a process
or service delivery mandate or maintenance of effort. The legislature must take
implementation costs into account when setting mandates for performance-based
outcomes.
new text end