management. 1. The department shall administer a statewide program for state funding of staffing and administrative costs related to the administration of human services. 2. Payments must be distributed to human service zones and the department pursuant to section 50-35-04, with the first payment distributions commencing in January 2020. 3. Human service zones shall cooperate with the department to adopt administrative and operational cost-savings methodologies and determine options for consolidations. Human service zones shall implement the administrative and operational cost -savings methodologies and consolidations. 4. During the 2021 -22 interim, the department, with assistance from the North Dakota association of counties and human service zone directors, shall develop a process for allowing a human service zone to opt in to state employment. The process must identify under what conditions and factors a transition to state employment may or may not be desirable for a human service zone and the department; outline the governance process for choosing to opt in to state employment, including a description of the role of the human service zone board, county commissions, and the department; and include a template and potential timeline for any zone choosing to make the transition to state employment. Before August 1, 2022, the department shall report to the legislative management the process developed for allowing a human service zone to opt in to state employment. The transition to state employment is contingent on the approval from the legislative assembly. 5. During the 2021 -22 interim, the department, with assistance from the North Dakota association of counties and human service zone directors, shall study indirect costs. The study must identify a plan defining the process to calculate payment for indirect costs. The department shall provide regular updates to the legislative management on the progress of the study. Before August 1, 2022, the department shall report to the legislative management the process developed to calculate payment for indirect costs.
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