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

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