| (a) TDMHMR may impose remedies and sanctions for a contractor's default. Default by a contractor includes: (1) submitting falsified documents or fraudulent invoicing or making false representations or certifications relating to the contract; (2) endangering the life, health, welfare, or safety of consumers served under the contract; (3) failing to perform or comply with any provision, term, or condition of the contract, including: (A) failing to perform according to the terms and conditions or within the time limit(s) specified in the contract; (B) failing to comply with applicable federal and state statutes and TDMHMR rules; (C) failing to notify and reimburse TDMHMR for services TDMHMR paid for when the contractor received reimbursement from a liable third party; (D) failing to disclose or make available, upon demand, to TDMHMR or its representatives any records the contractor is required to maintain; (E) failing to correct contract performance deficiencies after receiving written notice about them from TDMHMR; and (F) failing to repay or make and follow through with arrangements satisfactory to TDMHMR to repay identified overpayment or other erroneous payments. (b) Remedies may include: (1) requesting the contractor to respond in writing to identified problems; (2) requiring the contractor to submit to extensive monitoring by TDMHMR; (3) requiring the contractor to obtain training or technical assistance; and (4) requiring the contractor to submit financial and/or programmatic reports. (c) Sanctions may include: (1) terminating the contract; (2) withholding contract payments; (3) reducing the total allowable payment or rate(s) of payment; (4) reducing scope of contracted services or contract term; (5) assessing damages or financial penalties as allowed by law; and (6) requiring the contractor to correct performance to comply with contract at no additional cost to TDMHMR. |
| Source Note: The provisions of this §7.62 adopted to be effective July 1, 2001, 26 TexReg 4719; transferred effective September 1, 2004, as published in the Texas Register September 10, 2004, 29 TexReg 8841 |
