[§103F-408]  Modification and
termination of contracts.  (a)  The policy board shall adopt rules
specifying when a contract clause providing for adjustments in time of
performance, scope of service, payment amount and terms, or other contract
provisions as appropriate, by prior written consent of the parties, may be
included in a contract to purchase health and human services.



(b)  The policy board shall adopt rules
requiring the inclusion of a contract clause providing for termination of the
contract, either in whole or in part, for non-performance, reduction in funds
available to pay the provider, or a change in the conditions upon which the
need for the service was based.  The purchasing agency shall be required to
provide advance written notice to the provider organization with the reasons
for the termination. [L 1997, c 190, pt of §2]