86R5205 BRG-D
By: West S.B. No. 2340
A BILL TO BE ENTITLED
AN ACT
relating to the administration of "pay for success" contracts for
state agencies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 403.110(c), (e), and (f), Government
Code, are amended to read as follows:
(c) The trust fund consists of money gifted, granted,
donated, or appropriated for deposit to the credit of the trust fund
and any interest or other earnings attributable to the trust fund.
The comptroller shall hold money credited to the trust fund for use
only for payments due in accordance with success contract terms and
expenses incurred in administering the trust fund or in
administering the success contracts for which the trust fund is
established. The balance of the trust fund may not exceed $50
million at any time. The comptroller may establish in the trust fund
one or more accounts to administer money for a particular success
contract for which money has been credited to the trust fund.
(e) A contract executed under this section is not
enforceable until [The comptroller and a state agency may not
finally execute a proposed success contract under this section
unless]:
(1) the state agency and the Legislative Budget Board
certify that the proposed contract is expected to result in
significant performance improvements and significant budgetary
savings for the state agency or agencies party to the contract if
the performance targets are achieved; and
(2) a grantor or donor has gifted, granted, or
donated, or the legislature has appropriated for deposit to the
credit of the trust fund, contingent on the execution of the
contract, an amount of money necessary to administer the contract
and make all payments that may become due under the contract over
the effective period of the contract.
(f) The comptroller shall make the contract payments for the
success contracts only from the trust fund and only in accordance
with the terms of the success contracts. The comptroller shall
deposit to the credit of the trust fund any money the comptroller
recovers from a contractor for overpayment or for a penalty or other
amount recoverable under the terms of a success contract and shall
hold the money in the trust fund in the same manner as the money held
for payments for the success contract. To the extent that any money
credited to the trust fund for a particular success contract
remains unpaid at the time the particular contract expires or is
terminated, as soon after the contract expiration as is
practicable, the comptroller shall return the unpaid amount to the
grantor, donor, or state treasury fund or account from which the
money was gifted, granted, donated, or appropriated.
SECTION 2. This Act takes effect September 1, 2019.