SHERMAN, Texas — Fifty-nine Texoma Area Paratransit System (TAPS) employees were laid off Thursday, as the transit company announced it lost an important state contract, KTEN reported.

The State of Texas Health and Human Services Commission canceled its three-year contract with TAPS Thursday morning, stating the transit company would no longer provide services for their Medicaid Non-Emergency Medical Transportation riders, the report said.

The state says the decision to terminate was made after they concluded TAPS failed to pay their subcontractors, employees, and maintain their financial integrity as called for in the contract, according to KTEN.

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