2008-055-RES APPROVING AND AUTHORIZING THE EXECUTION OF A CONTRACT WITH THE DEPARTMENT OF STATE HEALTH SERVICES ("DSHS") DOCUMENT NO. 2009-028229-001 RLSS-LOCAL PUBLIC HEALTH SYSTEM

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with imposed. reconsideration of the remedies and to sanctions c lendartdays of receipt of notice, a recoupment, Contractor is require written response to Department acknowledging how Co ntractor shall tcorrect the non omplance or Department, the written response shall based are either demonstrate in writing that the findings on which the remedies or sanction(s) are invalid or do not warrant the remedies or sa i s bjec atrtto rev ew nder a federal or s~tater sanction is warranted, unless the remedy or sanction statute, regulation, rule, or guideline, Department's decision is final. Department shall provide written Contractor shall take SHS notice to Contractor of Department's decision. If required by the Department, issue will thi Dthe time limit tat d natheletter dem corrective action. If DSHS determines that rnpas ot receiv warranted, to Contractor for r e p a y m e n t. I f f u l l r e p a y m e demand letter, and if recoupment is available, DSHS will recoup the amount due to D S H S f r o m f u n d s otherwise due to Contractor. may immediately tem-linate Section 14.04 Emergency Action. In a o~~rgor ce~anently, withhold cash payment deny or suspend all or part of this Contract, temp y P An emergency'to contract renewal or future contract awards, or helae sontfor the emergency action.n n Contractor, by any verifiable method, statmg is defined as the following: a) Contractor is noncompliant and the noncompliance adverseaimpact may be programmatic orPublic or client health, welfare or safety. Th rovidin inadequate services, financial and may include failing to provide services, p g providing unnecessary services, or utilizing resources so that the public or clients do not receive the benefits contemplated by the scope of work or performance measures; or b) Contractor is expending funds inappropriately. Whether Contractor's conduct or noncomulion ~e natu e of the noncomplanc or conduUct P~ment on a case-by-case basis and will be based p ARTICLE XV CLAIMS AGAINST THE DEPARTMENT Section 15.01 Breach of Contract Claim. Chap andbmplementedtincDepartmen~t Rules Department provided for in Tex. Gov. Code pter 2260 1.431-1.447 shall be used by DSHS and Contractor to attempt to resolve any breach of contract claim against DSHS. Section 15.02 Notice. Contractor's claims for breach o he neC e n s provdedn TexSGov in the ordinary course of business shall be subrrutted to got aon proce Code Chapter 2260, subchapter B. To ini Ce t of General Counsel a The nouceu hall pecif cally states required by subchapter B, to DSHS s Offi the that the provisions of Chapter 2260, subchapter B,are ractorSubchap er Bp s a condition preceden ~ be given to all other representatives of DSHS and Con to the filing of a contested case proceeding under Tex. Gov. Code Chapter 2260, subchapter C. 615/08 Page 33 of 38 General Provisions (Core Subrecipient 2009)