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S.F. No. 1137 - State Agency Programs Designation as Performance-Based Organizations for Persons With Disabilities (The First Engrossment)
 
Author: Senator David Hann
 
Prepared By:
 
Date: May 16, 2011



 
Section 1 (15.996, subdivision 1) allows the Governor to designate one or more Department of Human Services (DHS) programs, and up to two programs in other executive agencies with missions involving people with disabilities, as a performance-based organization. It also allows the performance-based organization, or nonstate entity contracted with the performance-based organization, to enter into a performance-based agreement giving the agency or nonstate entity greater operational flexibility in exchange for more accountability.
Subdivision 2 requires a performance-based organization agreement to implement a performance-based organization designation. Performance-based organization agreements must:
  • describe programs under the agreement’s purview;
  • specify which laws, rules, and policies are not applicable due to the agreement, and the rationale for the waiver or variance;
  • detail oversight requirements and procedures;
  • contain provisions governing liability and insurance coverage details, if the performance-based organization is a nonstate entity;
  • specify duration of the agreement; and
  • specify reasonable outcomes, goals, and consequences for not meeting the outcomes.
Subdivision 3 sets the maximum length of agreements to no more than three years, and allows agreements to be renewed. It also requires the chief executive of the state agency whose program is subject to a performance-based organization to report to the chairs and ranking minority members of the appropriate legislative committees, describing laws, rules, and policies that will not apply; the legislature must approve a performance-based organization before the state agency can enter into a performance-based agreement.

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