1.1 	A bill for an act
1.2 	relating to human services; authorizing supplemental contracts;amending Minnesota Statutes 2010, section 256.0112, by adding a subdivision.1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2010, section 256.0112, is amended by adding a 
1.6 	subdivision to read:
1.7 		Subd. 9.Contracting for performance. In addition to the agreements in 
1.8 	subdivision 8, a local agency may negotiate a supplemental agreement to a contract 
1.9 	executed between a lead agency and an approved vendor under subdivision 6 for the 
1.10 	purposes of contracting for specific performance. The supplemental agreement may 
1.11 	augment the lead contract requirements and rates for services authorized by that local 
1.12 	agency only. The additional provisions must be negotiated with the vendor and designed 
1.13 	to encourage successful, timely, and cost-effective outcomes for clients, and may establish 
1.14 	incentive payments, penalties, performance-related reporting requirements, and similar 
1.15 	conditions. The per diem rate allowed under this subdivision must not be less than the rate 
1.16 	established in the lead county contract. Nothing in the supplemental agreement between a 
1.17 	local agency and an approved vendor binds the lead agency or other local agencies to the 
1.18 	terms and the conditions of the supplemental agreement.