1. (a) The department shall include in its contracts with service providers under this chapter or Subchapter E, Chapter 117, provisions relating to:

   1. (1) clearly defined and measurable program performance standards that directly relate to the service provided;
   2. (2) clearly defined penalties for nonperformance of a contract term; and
   3. (3) clearly specified accounting, reporting, and auditing requirements applicable to money received under the contract.

2. (b) The department shall monitor a service provider's performance under a contract for service under this chapter or Subchapter E, Chapter 117. In monitoring performance, the department shall:

   1. (1) use a risk-assessment methodology to institute statewide monitoring of contract compliance of service providers; and
   2. (2) evaluate service providers based on clearly defined and measurable program performance objectives.

Added by Acts 1999, 76th Leg., ch. 213, Sec. 8, eff. Sept. 1, 1999.

Acts 2015, 84th Leg., R.S., Ch. 1 (S.B. 219), Sec. 4.354, eff. April 2, 2015.