S.F. No. 1340 (Second Engrossment) allows counties to establish pilot projects to provide a service by an alternative service delivery method that requires a waiver of or an exemption from a law, rule, or procedure.

Article 1 – Counties authorized to act on matters of county concern.

Section 1.  Counties are authorized to exercise all powers necessary or fairly implied by an express delegation of power that is incident or essential to the exercise of the delegation and not expressly denied by or inconsistent with other laws.  The authority is subject to current law on firearms regulation.

Article 2 – MAGIC Act.

Section 1.  The provisions of Article 2 may be cited as the Minnesota Accountable Government Innovation and Collaboration (MAGIC) Act. The Act is established to develop and test alternative models for service delivery by counties that are focused on performance measures and outcomes.

Section 2.  Definitions are provided for terms used in the Act:

• “County” is defined to include a joint powers board of which a county is a member and a service delivery authority.
•  “Pilot project” is defined as a service that a county is providing by an alternative service delivery method that requires a waiver of or an exemption from a law, rule, or procedure, and that is approved under the provisions of the Act.
• “Pilot project coordinator or coordinator” is a member of the governor’s staff or a state agency who is designated by the governor to coordinate pilot projects among state agencies.

Section 3, subdivision 1.  The number of pilot projects in operation at any time is limited to ten per state agency and two per county. Each pilot project must be substantively different from any other pilot project.  

Subdivision 2.  The pilot project coordinator is responsible for general oversight of the pilot project program.  

Subdivision 3.  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. The county must publish notice before the meeting when it considers a project and must allow for comments on the proposal before taking action. The county must notify both the collective bargaining units and any person or organization that represents potentially affected service recipients about the  proposed pilot project.  Any interested party must be permitted to comment on the proposal before action by the county board.

Subdivision 4.  A county alternative service delivery business plan must include specific provisions, including the service, program, process or structure at issue; the statute, rule, or law imposing a requirement which the waiver or exemption is requested; a description of the performance measures developed; a description of how the outcomes will be measured; proposed date of implementation and expiration; consideration given to intergovernmental cooperation and why it has not been used; description of how advice will be sought from affected individuals; and a contingency plan that allows the county to abandon the project.  

Subdivision 5.  The coordinator and commissioner of the affected state agency have 60 days to review the application. The coordinator and commissioner must consult with appropriate stakeholders.  They may require changes to the county’s performance measures and outcome goals. The performance measures and outcome goals must be approved before the county may proceed with the pilot project.  

Subdivision 6. After approval by the coordinator and commissioner of the affected state agency, the coordinator and commissioner must review the county’s plan to implement its alternative service delivery pilot project. The coordinator and commissioner must consult with appropriate stakeholders.  The coordinator and commissioner may comment on the plan and recommend changes.  The county may adopt the changes or explain why it is not adopting the changes.  

Subdivision 7.  Before approval of the project, the coordinator, commissioner of the affected state agency, 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 state or federal law, or jeopardize state plan agreements with the federal government and related federal funding.  

Subdivision 8.  The coordinator and commissioner of the affected state agency, at a county’s request, may approve modifications to the project.  

Section 4. Any restructuring under this Act must include efforts to protect the interests of county employees and to provide the best possible service to the public.  When there is a loss of existing employment, the county  must assist affected employees in finding suitable employment.  Procedures for notifying employees affected by this Act must be negotiated into collective bargaining agreements. Employees of a pilot project remain county employees and members of their collective bargaining unit, if any.

Section 5.  A county may abandon a pilot project if it determines it will not meet the identified outcomes by following the procedures outlined in its business plan. The coordinator, in consultation with the commissioner of the affected state agency, may cancel a county’s authority to continue operating its pilot project if the coordinator determines the county is not operating in compliance with its business plan.  

Section 6, subdivision 1.  Each county participating must provide an annual report on its experience to the coordinator and the commissioner of the affected state agency. A final report is due within three months of the conclusion of the project.  

Subdivision 2.  The coordinator must compile county reports into one report and provide to the governor, legislative leaders, and the chairs and ranking minority members of the committees with jurisdiction over the subject matter.  

Section 7.  The effective date is the day following final enactment.

KB/rdr