| 1 | 1 | | 86R5205 BRG-D |
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| 2 | 2 | | By: West S.B. No. 2340 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the administration of "pay for success" contracts for |
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| 8 | 8 | | state agencies. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Sections 403.110(c), (e), and (f), Government |
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| 11 | 11 | | Code, are amended to read as follows: |
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| 12 | 12 | | (c) The trust fund consists of money gifted, granted, |
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| 13 | 13 | | donated, or appropriated for deposit to the credit of the trust fund |
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| 14 | 14 | | and any interest or other earnings attributable to the trust fund. |
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| 15 | 15 | | The comptroller shall hold money credited to the trust fund for use |
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| 16 | 16 | | only for payments due in accordance with success contract terms and |
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| 17 | 17 | | expenses incurred in administering the trust fund or in |
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| 18 | 18 | | administering the success contracts for which the trust fund is |
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| 19 | 19 | | established. The balance of the trust fund may not exceed $50 |
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| 20 | 20 | | million at any time. The comptroller may establish in the trust fund |
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| 21 | 21 | | one or more accounts to administer money for a particular success |
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| 22 | 22 | | contract for which money has been credited to the trust fund. |
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| 23 | 23 | | (e) A contract executed under this section is not |
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| 24 | 24 | | enforceable until [The comptroller and a state agency may not |
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| 25 | 25 | | finally execute a proposed success contract under this section |
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| 26 | 26 | | unless]: |
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| 27 | 27 | | (1) the state agency and the Legislative Budget Board |
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| 28 | 28 | | certify that the proposed contract is expected to result in |
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| 29 | 29 | | significant performance improvements and significant budgetary |
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| 30 | 30 | | savings for the state agency or agencies party to the contract if |
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| 31 | 31 | | the performance targets are achieved; and |
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| 32 | 32 | | (2) a grantor or donor has gifted, granted, or |
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| 33 | 33 | | donated, or the legislature has appropriated for deposit to the |
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| 34 | 34 | | credit of the trust fund, contingent on the execution of the |
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| 35 | 35 | | contract, an amount of money necessary to administer the contract |
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| 36 | 36 | | and make all payments that may become due under the contract over |
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| 37 | 37 | | the effective period of the contract. |
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| 38 | 38 | | (f) The comptroller shall make the contract payments for the |
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| 39 | 39 | | success contracts only from the trust fund and only in accordance |
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| 40 | 40 | | with the terms of the success contracts. The comptroller shall |
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| 41 | 41 | | deposit to the credit of the trust fund any money the comptroller |
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| 42 | 42 | | recovers from a contractor for overpayment or for a penalty or other |
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| 43 | 43 | | amount recoverable under the terms of a success contract and shall |
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| 44 | 44 | | hold the money in the trust fund in the same manner as the money held |
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| 45 | 45 | | for payments for the success contract. To the extent that any money |
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| 46 | 46 | | credited to the trust fund for a particular success contract |
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| 47 | 47 | | remains unpaid at the time the particular contract expires or is |
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| 48 | 48 | | terminated, as soon after the contract expiration as is |
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| 49 | 49 | | practicable, the comptroller shall return the unpaid amount to the |
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| 50 | 50 | | grantor, donor, or state treasury fund or account from which the |
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| 51 | 51 | | money was gifted, granted, donated, or appropriated. |
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| 52 | 52 | | SECTION 2. This Act takes effect September 1, 2019. |
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