A political subdivision subject to the merit system under this chapter may file a request with the division and the commissioner of the department of health and human services or commissioner’s designee to be exempted from the merit system. The request must describe a plan and policy that assures the political subdivision has developed a merit system plan that meets federal standards for personnel administration. The division and the commissioner of the department of health and human services or commissioner’s designee shall authorize the political subdivision plan within sixty days of receiving a request under this section if the plan and policies meet federal requirements. If the division and the commissioner of the department of health and human services or commissioner’s designee determine that the proposed plan and policies fail to meet the federal requirements, the division and the commissioner or designee shall deny the request and notify the requester of the specific reasons for the denial.