Texas Senate Bill SB2340

Texas 2019 - 86th Regular

Caption

Relating to the administration of "pay for success" contracts for state agencies.

Impact

By adding more rigorous certification requirements for proposed contracts, SB2340 ensures that significant resources are allocated only to initiatives that have a tangible potential for performance enhancement. The bill seeks to protect state finances by requiring that funds for administering these contracts and making payments are appropriately secured before the contracts can be executed. This is intended to minimize risks associated with public funding and improve accountability.

Summary

SB2340 aims to enhance the administration of 'pay for success' contracts within state agencies in Texas. The bill modifies existing legislative provisions in the Government Code related to the establishment and operation of a trust fund specifically created for managing these contracts. Notably, the changes include stipulations that dictate how the comptroller should manage funds, the expectations for performance improvements and budget savings, and the conditions under which contracts can be deemed enforceable.

Contention

While the bill appears to have broad support among those in favor of fiscal accountability and improved performance metrics, it may face opposition from groups concerned about the implications for agencies that rely on flexible funding or innovative approaches to service delivery. Critics might argue that the stringent requirements for pre-funding could limit the ability of state agencies to pursue beneficial contracts that could lead to innovative solutions.

Notable_points

Additionally, the limitations placed on the maximum balance of the trust fund at $50 million might spark debate regarding its adequacy for larger projects or for a more extensive rollout of such contracts across different agencies. This could lead to discussions on restructuring funding mechanisms to better support successful initiatives while ensuring that taxpayer money is used efficiently and effectively.