SF 1137

1st Engrossment - 87th Legislature (2011 - 2012) Posted on 03/06/2012 02:53pm

A bill for an act
relating to state government; authorizing designation of state agency programs as
performance-based organizations; proposing coding for new law in Minnesota
Statutes, chapter 15.

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

Section 1.

new text begin [15.996] PERFORMANCE-BASED ORGANIZATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Designation. new text end

new text begin The governor may designate one or more programs
within the Department of Human Services and within up to two other executive branch
state agencies whose missions involve people with disabilities as performance-based
organizations. The goal of the performance-based organization designation is to provide
the best services in the most cost-effective manner to people with disabilities. For a
program that is designated as a performance-based organization, the agency providing
services or another governmental or private organization under contract with the agency
may enter into a performance-based agreement that allows the agency or the entity under
contract with the agency more flexibility in its operations in exchange for a greater level of
accountability. With any required legislative approval, a performance-based organization
agreement may exempt an agency or an outside entity providing services from one or
more procedural laws, rules, or policies that otherwise would govern the program.
new text end

new text begin Subd. 2. new text end

new text begin Performance-based organization agreement. new text end

new text begin Designation of a
performance-based organization must be implemented through a performance-based
organization agreement. A performance-based organization agreement may be between
the governor and an agency, if an agency is to provide services under the agreement, or
between an agency and an outside entity, if the outside entity is to provide the services. A
performance-based organization agreement must:
new text end

new text begin (1) describe the programs subject to the agreement;
new text end

new text begin (2) specify the procedural laws, rules, or policies that will not apply to the
performance-based organization, why waiver or variance from these laws, rules, or
policies is necessary to achieve desired outcomes, and a description of alternative means
of accomplishing the purposes of those laws, rules, or policies;
new text end

new text begin (3) contain procedures for oversight of the performance-based organization,
including requirements and procedures for program and financial audits;
new text end

new text begin (4) if the performance-based organization involves a nonstate entity, contain
provisions governing assumption of liability, and types and amounts of insurance coverage
to be obtained;
new text end

new text begin (5) specify the duration of the agreement; and
new text end

new text begin (6) specify measurable performance-based outcomes for achieving program
goals, time periods during which these outcomes will be measured and reported, and
consequences for not meeting the performance-based outcomes.
new text end

new text begin Subd. 3. new text end

new text begin Duration; legislative approval; reporting. new text end

new text begin (a) A performance-based
organization agreement may be up to three years, and may be renewed.
new text end

new text begin (b) new text end

new text begin The chief executive of the state agency whose program is subject to a
performance-based organization must report to the chairs and ranking minority members
of legislative policy and finance committees with jurisdiction over the program on the
proposed content of the performance-based organization, and specifically describing
any procedural laws, rules, and policies that will not apply. The legislature must
approve a performance-based organization before the state agency may enter into a
performance-based agreement.
new text end