SB 7

This bill authorizes the Department of Administration to contract with a

private service provider for payments to provide social, employment, or correctional

services to individuals. The bill also creates a nonlapsible trust fund to be known as

the “pay for success trust fund,” from which payments under such a contract are to

be made. The balance of the fund may not exceed $20,000,000 at any time.

DOA may not execute a contract under the bill unless DOA determines that the

contract is expected to result in significant performance improvements or significant

budgetary savings for the state or a local governmental unit if the contract objectives

are achieved. Additionally, each contract under the bill is subject to approval by the

Joint Committee on Finance and must include all of the following:

1. A requirement that a majority of the total contract payment must be

conditioned on the service provider achieving certain performance measures

specified in the contract toward the outcome of the contract objectives.

2. A defined objective procedure by which an independent evaluator is required

to determine whether the performance measures have been achieved.

3. A schedule of the amounts and timing of payments to be earned by the service

provider during each year or other specified period of the contract.

The bill also requires the Departments of Health Services, Corrections,

Children and Families, and Workforce Development to submit, after study, reports

to the legislature concerning the programs those departments administer and advise

whether and how the kind of contracting provided for under the bill could be utilized

as an alternative to current funding models for those agencies' provision of program

services.