1. (a) Each plan shall have the organizational and administrative ability to carry out its contractual obligations, including but not limited to the following:

   1. (1) An unrestricted Knox-Keene license or pending application therefor.
   2. (2) A medical director as specified in Section 53246.
   3. (3) A grievance procedure as specified in Section 53260.
   4. (4) Member and enrollment reporting systems which fulfill the plan's contractual obligations.
   5. (5) A data-reporting system which provides reports required under the contract to the Department on a timely basis.
   6. (6) Financial records and books of account fully disclosing the disposition of all Medi-Cal program funds received. Such records and books shall be maintained on the accrual basis in accordance with generally accepted accounting principles.

Note: Authority cited: Section 14312, Welfare and Institutions Code. Reference: Sections 14251, 14308, 14450, and 14459, Welfare and Institutions Code.

History

1. Amendment filed 12-30-81; effective thirtieth day thereafter (Register 82, No. 1).