Sec. 40.058. CONTRACTS AND AGREEMENTS    


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  • (a) The department may enter into contracts or agreements with any person, including a federal, state, or other public or private agency, as necessary to perform any of the department's powers or duties.

    (b) A contract for the purchase of program-related client services must include:

    (1) clearly defined goals and outcomes that can be measured to determine whether the objectives of the program are being achieved;

    (2) clearly defined sanctions or penalties for noncompliance with contract terms; and

    (3) clearly specified accounting, reporting, and auditing requirements applicable to money received under the contract.

    (b-1) A contract for the purchase of substitute care services, as defined by Section 264.106, Family Code, must be procured using:

    (1) department procurement procedures; or

    (2) procurement procedures approved by the executive commissioner that promote open and fair competition.

    (c) The department shall monitor a contractor's performance under a contract for the purchase of program-related client services. In monitoring performance, the department shall:

    (1) use a risk-assessment methodology to ensure compliance with financial and performance requirements under the contract; and

    (2) obtain and evaluate program cost information to ensure that all costs, including administrative costs, are reasonable and necessary to achieve program objectives.

    (d) An agreement made under this section is not subject to Chapter 771 or 791, Government Code.

    (e) This section does not prohibit the department from entering into a contract or agreement subject to Chapter 771 or 791, Government Code, for a purpose authorized in the applicable chapter.

Added by Acts 1995, 74th Leg., ch. 920, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 1997, 75th Leg., ch. 1022, Sec. 19, eff. Sept. 1, 1997. Amended by: Acts 2005, 79th Leg., Ch. 268 , Sec. 1.88, eff. September 1, 2005.