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Minnesota Legislature

Office of the Revisor of Statutes

256.0112 GRANTS AND PURCHASE OF SERVICE CONTRACTS.
    Subdivision 1. Authority. The local agency may purchase community social services by
grant or purchase of service contract from agencies or individuals approved as vendors.
    Subd. 2. Duties of local agency. The local agency must:
(1) use a written grant or purchase of service contract when purchasing community social
services. Every grant and purchase of service contract must be completed, signed, and approved
by all parties to the agreement, including the county board, unless the county board has designated
the local agency to sign on its behalf. No service shall be provided before the effective date
of the grant or purchase of service contract;
(2) determine a client's eligibility for purchased services, or delegate the responsibility for
making the preliminary determination to the approved vendor under the terms of the grant or
purchase of service contract;
(3) ensure the development of an individual social service plan based on the client's needs;
(4) monitor purchased services and evaluate grants and contracts on the basis of client
outcomes; and
(5) purchase only from approved vendors.
    Subd. 3. Local agency criteria. When the local agency chooses to purchase community
social services from a vendor that is not subject to state licensing laws or department rules, the
local agency must establish written criteria for vendor approval to ensure the health, safety,
and well being of clients.
    Subd. 4. Case records and reporting requirements. Case records and data reporting
requirements for grants and purchased services are the same as case record and data reporting
requirements for direct services.
    Subd. 5. Files. The local agency must keep an administrative file for each grant and contract.
    Subd. 6. Contracting within and across county lines; lead county contracts. Paragraphs
(a) to (e) govern contracting within and across county lines and lead county contracts.
(a) Once a local agency and an approved vendor execute a contract that meets the
requirements of this subdivision, the contract governs all other purchases of service from the
vendor by all other local agencies for the term of the contract. The local agency that negotiated
and entered into the contract becomes the lead county for the contract.
(b) When the local agency in the county where a vendor is located wants to purchase services
from that vendor and the vendor has no contract with the local agency or any other county, the
local agency must negotiate and execute a contract with the vendor.
(c) When a local agency in one county wants to purchase services from a vendor located in
another county, it must notify the local agency in the county where the vendor is located. Within
30 days of being notified, the local agency in the vendor's county must:
(1) if it has a contract with the vendor, send a copy to the inquiring agency;
(2) if there is a contract with the vendor for which another local agency is the lead county,
identify the lead county to the inquiring agency; or
(3) if no local agency has a contract with the vendor, inform the inquiring agency whether it
will negotiate a contract and become the lead county. If the agency where the vendor is located
will not negotiate a contract with the vendor because of concerns related to clients' health and
safety, the agency must share those concerns with the inquiring agency.
(d) If the local agency in the county where the vendor is located declines to negotiate a
contract with the vendor or fails to respond within 30 days of receiving the notification under
paragraph (c), the inquiring agency is authorized to negotiate a contract and must notify the
local agency that declined or failed to respond.
(e) When the inquiring county under paragraph (d) becomes the lead county for a contract
and the contract expires and needs to be renegotiated, that county must again follow the
requirements under paragraph (c) and notify the local agency where the vendor is located. The
local agency where the vendor is located has the option of becoming the lead county for the new
contract. If the local agency does not exercise the option, paragraph (d) applies.
(f) This subdivision does not affect the requirement to seek county concurrence under
section 256B.092, subdivision 8a, when the services are to be purchased for a person with a
developmental disability or under section 245.4711, subdivision 3, when the services to be
purchased are for an adult with serious and persistent mental illness.
    Subd. 7. Contracts with community mental health boards. A local agency within the
geographic area served by a community mental health board authorized by sections 245.61 to
245.69, may contract directly with the community mental health board. However, if a local agency
outside of the geographic area served by a community mental health board wishes to purchase
services from the board, the local agency must follow the requirements under subdivision 6.
    Subd. 8. Placement agreements. A placement agreement must be used for residential
services. Placement agreements are valid when signed by authorized representatives of the facility
and the county of financial responsibility. If the county of financial responsibility and the county
where the approved vendor is located are not the same, the county of financial responsibility must,
if requested, mail a copy of the placement agreement to the county where the approved vendor
is providing the service and to the lead county within ten calendar days after the date on which
the placement agreement is signed. The placement agreement must specify that the service will
be provided in accordance with the individual service plan as required and must specify the unit
cost, the date of placement, and the date for the review of the placement. A placement agreement
may also be used for nonresidential services.
History: 1Sp2003 c 14 art 11 s 10; 2005 c 56 s 1