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]'age 11 Of 11 The Sta~e may withhold pa~en~ ~o ~he Department: un~il ~e S~e ~e S~a~ is en~t~l~ ~ a re~d. K. ~I.I~ 1. ~e Stste shall as~re c~li~ce wi~ all ~q of ~is ~n~ach. a. ~n de~e~ation of non~li~ce, ~e S~te shall give ~t s~xty (60) ~ys ~itten noti~ ~ ~ into c~li~ce. If -~e deficien~ is co~e~, ~e ~r~t s~ll ~t a ~it~n re,r% to ~e State w~ich sets for~% ~e ~ective ac~on t~en. b. If ~e ~e defici~cies should not ~ ~e~ to ~e ~tisfa~ion of ~e S~te after ~e s~y (60) day ~ri~, disburs~nt of ~(~ for ~e ~i~l~ aotivity ~y ~ ~rarily sus~nd~ ~ing n~o'tiation of a pl~ of ~rr~ a~ion. c. If ~e deficien~ is still not ~r~ct~ wi~in the n~t ~i~y (30) days foll~i~ te~ra~ sus~nsion of fu~ing, pr~ f~s ~y pe~y ~s~n~ until ~e ~t ~ provide eVidence ~ deficiencies have ~n ~rr~t~. d. In ~]e ~ent of ~e ~nt's ~n-c~li~ce wi~ clauses of ~is ContraS, ~e S~te ~y c~l, te~nate, or su~ ~is Con~act in 9~ole or in ~ ~d ~e ~t ~y ~ d~l~ inelig~le for f~r Stat~ ~n~acts or age--nbs. Such te~nati~s for non-cu~pli~ce sh~l not ~r ~til: (1) ~e p~isions of ~c~on K-1 (a~) have ~ follY, do--ted, ~ have fail~ to p~vide a resolution, (2) all o~er ~as~le a~is~ati~ r~ies ~ve ~ ~aust~. 2. If ~]e ~n~ or ~e S~te should ~ dete~n~ out of c~li~ %.~ ~e provisions of ~is Con~act, eider p~ty ~y file a fo~l a~al wi~ ~e ~h,~t of H~ ~s~ces. ~e ap~al shall be heaz~] ~ ~e ~nt of H~ Reso~ces wi~n t~nty (20) days of ~e ~itt~ r~esh. After hearing all ~e facts relative to ~e ap~al, ~e ~z~t of H~ Reso~ces shall d~ide within ten (10) days of ~e ~te of ~e hearing ~at sanc~ons, if ~y, shall ~ i~s~ on ~e ~ fo~d out of c~pliance. LCCAL SIGNAT~F$ D1VISION OF HEALTH SERVICES SIGNATUP~S irec.{o~ ' ~ Procedures Chief (Date) Finance O 'ricer - (Date) Stake tlealth Director (Date) Division of Health Services Chairman of County Conmissic~ers (Date)