Texas Administrative Code
Title 40 - SOCIAL SERVICES AND ASSISTANCE
Part 1 - DEPARTMENT OF AGING AND DISABILITY SERVICES
Chapter 7 - DADS ADMINISTRATIVE RESPONSIBILITIES
Subchapter B - CONTRACTS MANAGEMENT FOR STATE FACILITIES AND CENTRAL OFFICE
Section 7.62 - Remedies and Sanctions for All Contracts Except Construction Contracts

Universal Citation: 40 TX Admin Code § 7.62

Current through Reg. 50, No. 13; March 28, 2025

(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.

(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.

Disclaimer: These regulations may not be the most recent version. Texas may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.

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