(a) An approved applicant must enter into a contract with DARS before being allocated funds. A contract is not fully executed until it has been signed by DARS and the applicant.
  (1) The contract must be signed by an official authorized to enter into such agreements on behalf of the contractor.
  (2) The contract cannot be altered without authorized officials of both the contractor and DARS providing written approval before the effective date of the change. In emergency circumstances as determined by DARS in its sole discretion, the DARS ECI assistant commissioner may sign and offer a contract amendment to a contractor and may allow the contractor to accept by performance. DARS ECI may require a contractor's signature on the amendment before payment for the amended services.
  (3) No payment or advance of funds is made until the contract is fully executed.
  (4) By signing the contract the applicant agrees to all terms included in the contract and to adherence to state and federal laws and regulations, and applicable DARS rules, policy, and procedures, including subsequent amendments.
  (5) The contract may be renewed if the contract provides for renewal, and the contractor meets the renewal criteria in DARS rules and the contract.
(b) The contract must:
  (1) contain provisions requiring the contractor to comply with applicable requirements in this chapter, including:
    (A) state and federal laws and regulations, and applicable DARS policy and procedures, including subsequent amendments; and
    (B) the fiscal requirements for administering, accounting, auditing, and recovering funds as authorized by the UGCMA, UGMS, the CFR, and OMB Circulars;
  (2) state the contract number of children, when applicable;
  (3) authorize DARS to adjust the contract amount as appropriate;
  (4) authorize DARS to impose adverse actions for noncompliance with contract terms and conditions, state and federal laws and regulations, and applicable DARS rules, policy, and procedures, including subsequent amendments in accordance with the provisions of the Human Resources Code, §73.0051;
  (5) incorporate all or part of the application as part of the contract;
  (6) include clearly defined goals, outputs, and measurable outcomes that directly relate to program objectives; and
  (7) contain other provisions required by DARS.
(c) Any modifications resulting from changes in state or federal laws and regulations or judicial interpretation of laws and regulations that occur during the contract period are automatically made part of the contract and go into effect on the effective date of the law, regulation, or judicial interpretation.
(d) DARS assigns the effective date of the contract.
(e) The contract must be concurrent with the state fiscal year, unless DARS approves the contract for a different period.
(f) The contract must identify the counties in which the contractor is authorized to perform ECI services. Contractors that share counties must jointly develop a service area agreement to serve those counties. This service area agreement must be approved by DARS.
  (1) A request to change the designated service area must be:
    (A) submitted to the DARS ECI assistant commissioner; and
    (B) approved by the DARS ECI assistant commissioner before implementation.
  (2) DARS will not incur additional expenses as a result of a request to change a service area when the provision of services is at the same level for the same number of children.
(g) The contract terms and conditions may be amended by mutual agreement between DARS and the contractor during the contract period.
  (1) Except for reductions to the contract amount based on applicable contract provisions, the amendment must be in writing and signed by an authorized official of the contractor and the authorized DARS representatives. In emergency circumstances as determined by DARS in its sole discretion, the DARS ECI assistant commissioner may sign and offer a contract amendment to a contractor and may allow the contractor to accept by performance. The DARS ECI assistant commissioner may require a contractor's signature on the amendment before payment for the amended services. DARS does not pay for the performance of services or work not authorized by a properly executed contract amendment.
  (2) DARS develops a written contract amendment when contract changes are determined necessary. A contract amendment may be necessary for reasons including:
    (A) sanctions for the contractor's noncompliance or failure to meet program requirements;
    (B) changes in federal or state law that make continued fulfillment of the contract, on the part of either party, unreasonable or impossible;
    (C) changes to the assigned service area; or
    (D) awards or adjustments for other reasons.

Source Note: The provisions of this §392.107 adopted to be effective June 17, 2015, 40 TexReg 3638