1.2relating to counties; giving counties authority to provide for the general welfare;
1.3establishing an alternative service delivery pilot program for waivers; amending
1.4Minnesota Statutes 2010, section 375.18, by adding a subdivision; proposing
1.5coding for new law in Minnesota Statutes, chapter 402A.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:


1.9    Section 1. Minnesota Statutes 2010, section 375.18, is amended by adding a
1.10subdivision to read:
1.11    Subd. 16. General welfare. (a) A county may exercise all powers necessary
1.12or fairly implied by an express delegation by the state of a duty or a grant of power,
1.13incident or essential to the exercise of an express delegation of a duty or a grant of power,
1.14and not expressly denied by or inconsistent with the laws and regulations of the state or
1.15the United States.
1.16(b) A county may adopt reasonable ordinances, resolutions, and regulations relating
1.17to its property, affairs, and operations, and provide for the general health, safety, and
1.18welfare of the county, provided that the action is not expressly denied by or inconsistent
1.19with the laws and regulations of the state or the United States.
1.20(c) In exercising these powers, a county must not act in conflict or inconsistent with
1.21the powers and duties of other political subdivisions within the county.
1.22(d) The authority granted in this section is subject to section 471.633.


2.3    Section 1. [402A.60] MINNESOTA ACCOUNTABLE GOVERNMENT
2.4INNOVATION AND COLLABORATION (MAGIC) ACT.
2.5Sections 402A.60 to 402A.95 may be cited as the Minnesota Accountable
2.6Government Innovation and Collaboration (MAGIC) Act. It is established to develop and
2.7test alternative models for service delivery by counties, that are focused on performance
2.8measures and outcomes rather than processes for delivering services.

2.9    Sec. 2. [402A.70] DEFINITIONS.
2.10    Subdivision 1. Application. The terms defined in this section apply to sections
2.11402A.60 to 402A.95.
2.12    Subd. 2. County. "County" includes a joint powers board of which a county is a
2.13member, and a service delivery authority as defined in section 402A.10, subdivision 5.
2.14    Subd. 3. Pilot project. "Pilot project" means a service that a county is providing by
2.15an alternative service delivery method that requires a waiver of or exemption from a law,
2.16rule, or procedure and that is approved under sections 402A.60 to 402A.95.
2.17    Subd. 4. Pilot project coordinator or coordinator. "Pilot project coordinator" or
2.18"coordinator" means a member of the governor's staff or a state agency who is designated
2.19by the governor to coordinate pilot projects among state agencies.

2.20    Sec. 3. [402A.80] PILOT PROJECT SELECTION PROCESS.
2.21    Subdivision 1. Scope of pilot project program. The maximum number of pilot
2.22projects in operation at any time is ten per state agency and two per county. Each pilot
2.23project must be substantively different from any other pilot project.
2.24    Subd. 2. Coordinator's duties. The pilot project coordinator is responsible for
2.25general oversight of the pilot project program. Among the coordinator's duties are
2.26ensuring that the maximum number and type of pilot projects is not exceeded. The
2.27coordinator must develop, or assist state agencies in developing, any useful application
2.28forms and procedures for use by applicants and state agencies.
2.29    Subd. 3. County initiation; notice. A county may apply to the pilot project
2.30coordinator for permission to implement an alternative service delivery pilot project. The
2.31coordinator must work in conjunction with the commissioner of the appropriate state
2.32agency or agencies. The application at a minimum must include a resolution adopted at a
2.33regular meeting of the county board held after at least two weeks' published notice. The
3.1county must provide notice of the proposed pilot project to: (1) the collective bargaining
3.2units with which the county has agreements, and (2) any person or organization that
3.3represents potentially affected service recipients. The county board must permit any party
3.4receiving notice of the pilot project proposed and any other interested parties to provide
3.5comments on the proposal before the county board takes action on the proposed resolution
3.6to submit a pilot project for implementation.
3.7    Subd. 4. County business plan. The county alternative service delivery business
3.8plan must:
3.9(1) identify the service, program, process, or structure at issue;
3.10(2) identify the statute, administrative rule, or the law imposing a requirement with
3.11respect to which the waiver or exemption is requested;
3.12(3) include a description of the performance measures developed under section 6.91
3.13or other method and outcomes sought, including an explanation of the effect of the waiver
3.14or exemption in accomplishing that outcome;
3.15(4) include a description of the means by which the attainment of the outcome
3.16will be measured;
3.17(5) specify the proposed date of implementation and expiration for the alternative
3.18service delivery model over a time period not less than 12 months and not more than
3.1936 months;
3.20(6) describe the consideration given to intergovernmental cooperation in providing
3.21this service, and an explanation of why the county has elected to proceed independently if
3.22the waiver or exemption is proposed by a single county;
3.23    (7) describe how the county will seek out and take into consideration the advice of
3.24those receiving services who may be affected by the pilot project; and
3.25(8) include a contingency plan that allows the county to abandon the pilot project
3.26voluntarily or due to the pilot project reaching its expiration date, and provide for the
3.27service delivery under existing laws and procedures.
3.28    Subd. 5. Review and approval of performance measures; outcome goals.
3.29The coordinator and the commissioner of the affected state agency have 60 days to
3.30review the application. The coordinator and commissioner must consult with appropriate
3.31stakeholders. The coordinator and the commissioner of the affected state agency may
3.32require changes to the county's performance measures and outcome goals. The coordinator
3.33and the commissioner of the affected state agency must approve the performance measures
3.34and outcome goals before the county may proceed with the pilot project.
3.35    Subd. 6. Review and comment on alternative delivery. After the coordinator and
3.36the commissioner of the affected state agency have approved the performance measures
4.1and outcome goals, they must review the county's plan to implement its alternative service
4.2delivery pilot project. The coordinator and commissioner must consult with appropriate
4.3stakeholders. The coordinator and the commissioner of the affected state agency may
4.4comment on the plan and recommend changes. The county may adopt the recommended
4.5changes or explain in writing to the coordinator and the commissioner of the affected state
4.6agency within 30 days why it is not adopting the changes in the implementation.
4.7    Subd. 7. No prejudice or violation of rights. Before the coordinator and the
4.8commissioner of the affected state agency approve an alternative service delivery pilot
4.9project, they and the county must determine that any proposed waiver or suspension of
4.10state laws, rules, or administrative procedures will not prejudice a substantial legal right of
4.11any person, violate due process or any other state or federal law, or jeopardize state plan
4.12agreements with the federal government and related federal funding.
4.13    Subd. 8. Modifications. At a county's request, the coordinator and commissioner
4.14for each affected state agency may approve modifications to the county's pilot project.
4.15The coordinator and commissioner may also submit recommended modifications in
4.16writing during the term of the pilot project, but a county is not required to implement
4.17the modifications.

4.18    Sec. 4. [402A.85] COUNTY EMPLOYEES.
4.19    (a) Any restructuring of county agencies under the MAGIC Act must include efforts
4.20to ensure that fair and equitable arrangements are carried out to protect the interests of
4.21county employees and to provide the best possible service to the public. The county shall
4.22make an effort to train and retrain existing employees for a changing work environment.
4.23Where a MAGIC Act pilot project may involve a loss of existing positions and
4.24employment, the county shall assist affected employees in finding suitable employment.
4.25    (b) Options available to employees whose positions will be eliminated by
4.26implementation of a MAGIC Act pilot project must include, at a minimum, job and
4.27training opportunities necessary to qualify for another job in the same, an equal, or a lower
4.28classification within the county.
4.29    (c) Procedures for notifying employees affected by MAGIC Act pilot projects must
4.30be negotiated into collective bargaining agreements under chapter 179A. Upon notification
4.31of a proposed pilot project, the bargaining unit is afforded the opportunity to bargain over
4.32any changes to an employee's working conditions or employment status contained within
4.33the proposed business plan. Nothing in this section shall be construed as diminishing any
4.34rights of employers or employees as defined in collective bargaining agreements under
4.35this chapter or chapter 179A.
5.1    (d) Employees of any pilot project remain employees of the county or counties
5.2sponsoring the project and remain members of their existing collective bargaining unit,
5.3if any.

5.4    Sec. 5. [402A.90] CANCELLATION OF PILOT PROJECT.
5.5A county may abandon a pilot project if it determines it will not meet the outcomes
5.6identified. It must follow procedures identified in its business plan to abandon the project
5.7and provide for the service delivery under existing laws and procedures.
5.8The coordinator, in consultation with the commissioner of any affected state agency,
5.9may cancel a county's authority to continue operating its pilot project if the coordinator
5.10determines that the county is not operating in compliance with its business plan.

5.11    Sec. 6. [402A.95] EVALUATION AND REPORT.
5.12    Subdivision 1. County report. Each county participating in the alternative service
5.13delivery pilot project program must provide to the coordinator and the commissioner
5.14of each affected state agency an annual report on its experience to date with the pilot
5.15project. The report is due by December 15. The report must include information on
5.16the services involved, the performance measures and outcome goals, what waivers or
5.17exemptions were sought and granted, whether the pilot project was modified and why, the
5.18successes and failures, costs, savings, and any other information the county, coordinator,
5.19or commissioner determine is useful in evaluating the program. A final report is due
5.20within three months of the county concluding its pilot project.
5.21    Subd. 2. Report to governor and legislature. By January 15 each year, the
5.22coordinator must compile the county reports into one report to the governor, legislative
5.23leaders, and the chairs and ranking minority members of the legislative committees with
5.24jurisdiction over policy and finance related to state government operations, taxes, and the
5.25program areas in which pilot projects have been implemented. The report must also list all
5.26active pilot projects and their expiration dates.

5.27    Sec. 7. EFFECTIVE DATE.
5.28This act is effective the day following final enactment.