1. (a) A plan contract shall be renewed unless good cause is shown for nonrenewal. Good cause for nonrenewal shall include, but not be limited to, the following:

   1. (1) Failure of the plan to comply with all terms and conditions of the contract and with all applicable laws and regulations.
   2. (2) Failure of the plan to comply with the provisions of a renewed contract and all applicable laws and regulations.
   3. (3) The Department's finding of fact, based upon the plan's past performance under its contract, that it does not have the ability to fulfill the terms of a renewed contract with the State.
2. (b) The Director shall have final discretionary authority in the renewal of any plan contract.

Note: Authority cited: Section 14312, Welfare and Institutions Code. Reference: Section 14303.3, Welfare and Institutions Code.

History

1. Amendment filed 9-22-82; effective thirtieth day thereafter (Register 82, No. 39).