(a) The department shall include in its contracts with service providers under this chapter or Subchapter E, Chapter 117, provisions relating to:
(1) clearly defined and measurable program performance standards that directly relate to the service provided;
(2) clearly defined penalties for nonperformance of a contract term; and
(3) clearly specified accounting, reporting, and auditing requirements applicable to money received under the contract.
(b) The department shall monitor a service provider’s performance under a contract for service under this chapter or Subchapter E, Chapter 117. In monitoring performance, the department shall:
(1) use a risk-assessment methodology to institute statewide monitoring of contract compliance of service providers; and
(2) evaluate service providers based on clearly defined and measurable program performance objectives.