Pilot program established for delegation of authority for licensing and inspection of food, beverage, and lodging establishments; Shakopee delegation authorized; statewide expansion provided; and reports required.

A bill for an act

relating to public health; establishing a pilot program for delegation of authority

for licensing and inspection of food, beverage, and lodging establishments;

authorizing delegation to the city of Shakopee; providing for statewide expansion;

requiring reports; amending Minnesota Statutes 2024, section 157.16, by adding

subdivisions.

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

Section 1.

Minnesota Statutes 2024, section 157.16, is amended by adding a subdivision

to read:

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Subd. 1a.

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Delegation authorized.

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The commissioner of health may delegate to a

community health board, county, or city all or part of the authority for licensing, inspection,

and enforcement under this chapter for food, beverage, and lodging establishments; public

pools; and related public health activities.

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Sec. 2.

Minnesota Statutes 2024, section 157.16, is amended by adding a subdivision to

read:

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Subd. 1b.

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Oversight.

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The commissioner retains authority to monitor, audit, and rescind

delegation if a delegated program fails to meet state standards.

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Sec. 3.

Minnesota Statutes 2024, section 157.16, is amended by adding a subdivision to

read:

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Subd. 1c.

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Fees.

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A city receiving delegation under this section may establish and collect

fees by ordinance sufficient to cover the cost of administering the program.

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Sec. 4.

Minnesota Statutes 2024, section 157.16, is amended by adding a subdivision to

read:

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Subd. 1d.

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Statewide delegation authorization; conversion.

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(a) Upon completion of

the city of Shakopee five-year pilot program in section 5 of this act, the commissioner shall

authorize delegation under this section to any city that meets the requirements of subdivision

1 and demonstrates compliance with the standards established in this chapter.

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(b) The commissioner shall not deny delegation to a city based solely on population

thresholds, jurisdictional classification, or prior statutory limitations that restrict delegation

to counties or community health boards.

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(c) The commissioner may adopt rules or guidance as necessary to implement statewide

delegation consistent with the findings and recommendations of the pilot program reports

in section 5 of this act.

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(d) This subdivision is effective without further legislative action unless the legislature

enacts a law modifying or repealing this subdivision prior to the expiration of the city of

Shakopee pilot program.

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EFFECTIVE DATE.

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This section is effective the day following final enactment.

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Sec. 5.
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CITY OF SHAKOPEE PILOT PROGRAM.
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Subdivision 1.

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Delegation.

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(a) Notwithstanding any law to the contrary, the commissioner

of health shall establish a pilot program to delegate authority under Minnesota Statutes,

section 157.16, to the city of Shakopee.

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(b) The commissioner must approve delegation under the pilot program to the city of

Shakopee if the city demonstrates that it:

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(1) employs or contracts with qualified environmental health professionals;

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(2) maintains a program that meets or exceeds state standards for licensing, inspection,

and enforcement;

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(3) adopts ordinances consistent with Minnesota Statutes, chapter 157, and applicable

rules;

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(4) maintains data systems compatible with state reporting requirements; and

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(5) enters into a written agreement with the commissioner.

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(c) The pilot program must be implemented within six months of final enactment.

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(d) The commissioner shall not deny participation in the pilot program based solely on

population thresholds or jurisdictional classification.

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Subd. 2.

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Pilot program report.

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(a) Beginning January 15 of the year following

implementation, and annually thereafter, the commissioner of health, in coordination with

the city of Shakopee, shall submit a report to the chairs and ranking minority members of

the legislative committees with jurisdiction over health policy and local government.

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(b) The report must include:

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(1) the number and type of inspections conducted;

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(2) compliance rates and enforcement actions;

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(3) comparison of inspection timelines and outcomes with state-administered programs;

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(4) administrative costs and fee structures;

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(5) feedback from regulated businesses; and

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(6) recommendations regarding continuation, expansion, or modification of delegation

authority to cities.

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Subd. 3.

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Minimum duration.

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The pilot program must remain in effect for not less than

five years from the date of implementation. The commissioner may not terminate the pilot

program before the five-year period expires except for cause based on failure to meet state

standards.

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