Sec. 1. 5 MRSA §20005, sub-§6-A, ķA, as enacted by PL 1997, c. 381, §1, is repealed and the following enacted in its place:

A.__Performance-based contracts between the department and its providers may always be renewed without subjecting such a renewal to the request-for-proposal procedure.

Sec. 2. 34-B MRSA §3604, sub-§3, ķE, as amended by PL 1997, c. 381, §2, is further amended to read:

E. Any new contract must be awarded through a request-for- proposal procedure and any contract of $500,000 per year or more that is renewed must be awarded through a request-for- proposal procedure at least every 8 years, except for the following.

(1) A renewal contract with a provider is not subject to the request-for-proposal procedure requirement if the contract granted under this subsection is performance based Performance-based contracts between the department and its providers may always be renewed without subjecting such a renewal to the request-for- proposal procedure.

(2) Notwithstanding subparagraph (1), the department shall subject a contract to a request-for-proposal procedure when necessary to comply with paragraph G.

SUMMARY

This bill provides that any performance-based contract between the Department of Mental Health, Mental Retardation and Substance Abuse Services and its providers may be renewed without subjecting the renewal to the request-for-proposal procedure.