Subd. 1. Requirements for establishing a service delivery authority.

1. (a) A county, tribe, or consortium of counties is eligible to establish a service delivery authority if:

   1. (1) the county, tribe, or consortium of counties is:

      1. (i) a single county with a population of 55,000 or more;
      2. (ii) a consortium of counties with a total combined population of 55,000 or more;
      3. (iii) a consortium of four or more counties in reasonable geographic proximity without regard to population; or

      4. (iv) one or more tribes with a total combined population of 25,000 or more.

         The council may recommend that the commissioners exempt a single county, tribe, or consortium of counties from the minimum population standard if the county, tribe, or consortium of counties can demonstrate that it can otherwise meet the requirements of this chapter.

2. (b) A service delivery authority shall:

   1. (1) comply with current state and federal law, including any existing federal or state performance measures when they are enacted into law, except where waivers are approved by the commissioners;
   2. (2) define the scope of essential services over which the service delivery authority has jurisdiction;
   3. (3) designate a single administrative structure to oversee the delivery of those services included in a proposal for a redesigned service or services and identify a single administrative agent for purposes of contact and communication with the department;
   4. (4) identify the waivers from statutory or rule program requirements that are needed to ensure greater local control and flexibility to determine the most cost-effective means of achieving specified measurable goals that the participating service delivery authority is expected to achieve;
   5. (5) set forth a reasonable level of targeted reductions in overhead and administrative costs for each service delivery authority participating in the service delivery redesign;
   6. (6) set forth the terms under which a county, tribe, or consortium of counties may withdraw from participation. In the case of withdrawal of any or all parties or the dissolution of the service delivery authority, the employees shall continue to be represented by the same exclusive representative or representatives and continue to be covered by the same collective bargaining union agreement until a new agreement is negotiated or the collective bargaining agreement term ends; and
   7. (7) set forth a structure for managing the terms and conditions of employment of the employees as provided in section 402A.40.
3. (c) Once a county, tribe, or consortium of counties establishes a service delivery authority, no county, tribe, or consortium of counties that is a member of the service delivery authority may participate as a member of any other service delivery authority. The service delivery authority may allow an additional county, a tribe, or a consortium of counties to join the service delivery authority subject to the approval of the council and the commissioners.
4. (d) Nothing in this chapter precludes local governments from using sections 465.81 and 465.82 to establish procedures for local governments to merge, with the consent of the voters. Nothing in this chapter limits the authority of a county board or tribal council to enter into contractual agreements for services not covered by the provisions of a memorandum of understanding establishing a service delivery authority with other agencies or with other units of government.

Subd. 2. Relief from statutory requirements.

1. (a) Unless otherwise identified in the memorandum of understanding, any county, tribe, or consortium of counties forming a service delivery authority is exempt from the provisions of sections 142G.76, subdivision 2, paragraph (b); 245.465; 245.4835; 245.4874; 245.492, subdivision 2; 245.4932; 256F.13; and 256M.30.
2. (b) This subdivision does not preclude any county, tribe, or consortium of counties forming a service delivery authority from requesting additional waivers from statutory and rule requirements to ensure greater local control and flexibility.

Subd. 3. Duties.

The service delivery authority shall:

1. (1) within the scope of essential services set forth in the memorandum of understanding establishing the authority, carry out the responsibilities required of local agencies under chapter 393 and human services boards under chapter 402;
2. (2) manage the public resources devoted to human services and other public services delivered or purchased by the counties or tribes that are subsidized or regulated by the Department of Human Services under chapters 245 to 261;
3. (3) employ staff to assist in carrying out its duties;
4. (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;
5. (5) receive and expend funds received for the redesign process under the memorandum of understanding;
6. (6) plan and deliver services directly or through contract with other governmental, tribal, or nongovernmental providers;
7. (7) rent, purchase, sell, and otherwise dispose of real and personal property as necessary to carry out the redesign; and
8. (8) carry out any other service designated as a responsibility of a county.

Subd. 4. Process for establishing a service delivery authority.

1. (a) The county, tribe, or consortium of counties meeting the requirements of this section and proposing to establish a service delivery authority shall present to the council:

   1. (1) in conjunction with the commissioners, a proposed memorandum of understanding meeting the requirements of subdivision 1, paragraph (b), and outlining:

      1. (i) the details of the proposal;
      2. (ii) the state, tribal, and local resources, which may include, but are not limited to, funding, administrative and technology support, and other requirements necessary for the service delivery authority; and
      3. (iii) the relief available to the service delivery authority if the resource commitments identified in item (ii) are not met; and
   2. (2) a board resolution from the board of commissioners of each participating county stating the county's intent to participate, or in the case of a tribe, a resolution from tribal government, stating the tribe's intent to participate.
2. (b) After the council has considered and recommended approval of a proposed memorandum of understanding, the commissioners may finalize and execute the memorandum of understanding.

Subd. 5. Commissioner authority to seek waivers.

The commissioners may use the authority under section 142A.03, subdivision 2, paragraph (k), or 256.01, subdivision 2, paragraph (k), to grant waivers identified as part of a proposed service delivery authority under subdivision 1, paragraph (b), clause (4), except that waivers granted under this section must be approved by the council under section 402A.20 rather than the Legislative Advisory Committee.