Common use of Discretionary Sanctions Clause in Contracts

Discretionary Sanctions. HHSC may impose one or more of the discretionary sanctions described below for non-compliance with a Contract requirement: 3.3.1 Impose penalties for failing to comply with any contract requirement except those described in sections 3.2.1 - 3.2.5 of this Attachment, in accordance with the penalty chart in section 3.4.1 of this Attachment. 3.3.2 Impose penalties for failing to correct a finding within the timeframe stated in the CAP that was accepted to correct the finding, except for a finding from a quality assurance review as provided for in section 3.2.3 of this Attachment. 3.3.3 Temporarily withhold contract funds pending resolution of issues of non-compliance with contract requirements or indebtedness to the United States or to the state of Texas. 3.3.4 Permanently withhold allocated funds, or require LIDDA to return contract funds for: (a) Unallowable, undocumented, inaccurate, or improper expenditures; (b) Failure to comply with contract requirements; or (c) Indebtedness to the United States or to the state of Texas. 3.3.5 Reduce the contract term. 3.3.6 Limit allocations to monthly distributions. 3.3.7 Require removal of any officer or employee of the LIDDA: (a) Who has been convicted of the misuse of state or federal funds, fraud, or illegal acts that are a contraindication to continued performance of obligations under this Contract, as determined by HHSC, or (b) Who has committed an egregious violation of policies and procedures of the terms of this Contract, as determined by HHSC; 3.3.8 Suspend all or part of this Contract. Suspension is, depending on the context, either: (1) the temporary withdrawal of the LIDDA’s authority to obligate contract funds pending corrective action by the LIDDA or pending a decision to terminate or amend this Contract; or (2) an action taken to immediately exclude a person from participating in contract transactions for a period, pending completion of an investigation and such legal or debarment proceedings as may ensue. LIDDA’s costs resulting from obligations incurred by the LIDDA during a suspension are not allowable unless expressly authorized by the notice of suspension. 3.3.9 Deny additional or future contracts or renewals with the LIDDA; and 3.3.10 Terminate this Contract, as described in section 3.9 of this Attachment.

Discretionary Sanctions. HHSC may impose one or more of the discretionary sanctions described below for non-compliance with a Contract requirement: 3.3.1 Impose penalties for failing to comply with any contract requirement except those described in sections 3.2.1 3.2.2 - 3.2.5 of this Attachment, in accordance with the penalty chart in section 3.4.1 of this Attachment. 3.3.2 Impose penalties for failing to correct a finding within the timeframe stated in the CAP that was accepted to correct the finding, except for a finding from a quality assurance review as provided for in section 3.2.3 of this Attachment. 3.3.3 Temporarily withhold contract funds pending resolution of issues of non-compliance with contract requirements or indebtedness to the United States or to the state of Texas. 3.3.4 Permanently withhold allocated funds, or require LIDDA to return contract funds for: (a) Unallowable, undocumented, inaccurate, or improper expenditures; (b) Failure to comply with contract requirements; or (c) Indebtedness to the United States or to the state of Texas. 3.3.5 Reduce the contract term. 3.3.6 Limit allocations to monthly distributions. 3.3.7 Require removal of any officer or employee of the LIDDA: (a) Who has been convicted of the misuse of state or federal funds, fraud, or illegal acts that are a contraindication to continued performance of obligations under this Contract, as determined by HHSC, or (b) Who has committed an egregious violation of policies and procedures of the terms of this Contract, as determined by HHSC; 3.3.8 Suspend all or part of this Contract. Suspension is, depending on the context, either: (1) the temporary withdrawal of the LIDDA’s authority to obligate contract funds pending corrective action by the LIDDA or pending a decision to terminate or amend this Contract; or (2) an action taken to immediately exclude a person from participating in contract transactions for a period, pending completion of an investigation and such legal or debarment proceedings as may ensue. LIDDA’s costs resulting from obligations incurred by the LIDDA during a suspension are not allowable unless expressly authorized by the notice of suspension. 3.3.9 Deny additional or future contracts or renewals with the LIDDA; and 3.3.10 Terminate this Contract, as described in section 3.9 of this Attachment.

Discretionary Sanctions. HHSC DADS may impose one or more of the discretionary sanctions described below for non-compliance with a Contract contract requirement: 3.3.1 a. Impose penalties for failing to comply with any contract requirement except those described in sections 3.2.1 - 3.2.5 of this Attachment2.b.-e. above, in accordance with the penalty chart in section 3.4.1 of this Attachment.4. below; 3.3.2 b. Impose penalties for failing to correct a finding within the timeframe stated in the CAP that was accepted to correct the finding, except for a finding from a quality assurance review as provided for in section 3.2.3 of this Attachment.2.c. above; 3.3.3 c. Temporarily withhold contract funds pending resolution of issues of non-non- compliance with contract requirements or indebtedness to the United States or to the state State of Texas.; 3.3.4 d. Permanently withhold allocated funds, or require the LIDDA to return contract funds for: (a) i. Unallowable, undocumented, inaccurate, or improper expenditures; (b) ii. Failure to comply with contract requirements; or (c) iii. Indebtedness to the United States or to the state State of Texas.; 3.3.5 e. Reduce the contract term.; 3.3.6 f. Limit allocations to monthly distributions.; 3.3.7 g. Require removal of any officer or employee of the LIDDA: (a) i. Who has been convicted of the misuse of state or federal funds, fraud, or illegal acts that are a contraindication to continued performance of obligations under this Contract, as determined by HHSC, DADS; or (b) ii. Who has committed an egregious violation of policies and procedures of the terms of this Contract, as determined by HHSCDADS; 3.3.8 h. Suspend all or part of this Contract. Suspension is, depending on the context, either: (1) the temporary withdrawal of the LIDDA’s authority to obligate contract funds pending corrective action by the LIDDA or pending a decision to terminate or amend this Contract; or (2) an action taken to immediately exclude a person from participating in contract transactions for a period, pending completion of an investigation and such legal or debarment proceedings as may ensue. The LIDDA’s costs resulting from obligations incurred by the LIDDA during a suspension are not allowable unless expressly authorized by the notice of suspension.; 3.3.9 i. Deny additional or future contracts or renewals with the LIDDA; and 3.3.10 j. Terminate this Contract, as described in section 3.9 of this Attachment.Article IV.F.