Section 1 (15.996), subdivision 1, allows the Governor to designate one or more Department of Human Services 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 operations 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 allows performance-based organizations to transfer funds among programs subject to the agreement, subject to approval of the Commissioner of Minnesota Management and Budget.
Subdivision 4 sets the maximum length of agreements to no more than three years, and allows agreements to be renewed. Any procedural law exemption in the agreement expires ten days after the legislative session ends, unless otherwise specified in law.
Subdivision 5 details the reporting requirements of the program(s) subject to a performance-based organization.
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