Mississippi SB 2103: "Pay for Success Contracts Act"; authorize DFA and public school districts to only pay providers when results are successful.

Bill Text

SB2103 (As Introduced) - 2019 Regular Session 

MISSISSIPPI LEGISLATURE

2019 Regular Session

To: Education; Appropriations

By: Senator(s) Watson

Senate Bill 2103

AN ACT TO AUTHORIZE THE DEPARTMENT OF FINANCE AND 
ADMINISTRATION AND PUBLIC SCHOOL DISTRICTS TO IMPLEMENT A "PAY FOR SUCCESS 
CONTRACTING" PROCESS WHICH LEVERAGES PUBLIC AND PRIVATE FUNDING AND 
SUPPORTS PROVIDERS WITH A RECORD OF IMPROVED SERVICES, INCREASED STUDENT 
ACHIEVEMENT AND COST-EFFECTIVENESS; TO PROVIDE DEFINITIONS; TO PROVIDE FOR THE 
ESTABLISHMENT OF THE "PAY FOR SUCCESS CONTRACTS" PROGRAM; TO PROVIDE 
PROCEDURES AND CRITERIA FOR ENTERING INTO SUCH CONTRACTS WITH PROVIDERS; TO 
ESTABLISH THE PAY FOR SUCCESS CONTRACTS FUND; AND FOR RELATED PURPOSES.

���� BE IT ENACTED BY THE 
LEGISLATURE OF THE STATE OF MISSISSIPPI:

���� SECTION 1.� 
(1)� This section shall be known and may be cited as the "Pay for Success 
Contracts Act."

���� (2) �Definitions.� As 
used in this section, unless the context otherwise requires:

��������� (a)� 
"Contract" means a Pay for Success Contract entered into by the 
Department of Finance and Administration and a lead contractor, or the 
Department of Finance and Administration and one or more public school 
districts, and a lead contractor as authorized by subsection (3) of this 
section.

��������� (b)� "Fund" 
means the Pay for Success Contracts Fund created in subsection (3) of this 
section.

��������� (c)� 
"Investor" means a person or entity that is not a lead contractor or 
provider and that provides working capital to fund the provision of services 
under a contract.

��������� (d)� "Lead 
contractor" means an organization or local government selected by the 
Director of the Department of Finance and Administration or the local school 
board to participate in the state program by:

������������� (i)� Entering into 
a Pay for Success Contract with the Department of Finance and Administration, 
or with the Department of Finance and Administration and one or more public 
school districts, as applicable, to provide program-eligible interventions 
directly or through subcontracts with other providers;

������������� (ii)� Overseeing 
the provision of program-eligible interventions by any other providers with 
which it subcontracts; and

������������� (iii)� Using its 
own money or borrowing money to pay the costs of providing program-eligible 
interventions throughout the contract as negotiated by the parties and, if the 
program-eligible interventions that it provides meet the defined performance 
targets established in a Pay for Success Contract, receiving success payments.

��������� (e)� "Program-eligible 
interventions" means services provided in order to improve the lives and 
living conditions of individuals by increasing economic opportunity and the 
likelihood of healthy futures and promoting child and youth development.

��������� (f)� 
"Provider" means a person or entity that provides program-eligible 
interventions on a for-profit or nonprofit basis.� "Provider" 
includes:

������������� (i)� A lead 
contractor that provides program-eligible interventions directly rather than 
entering into subcontracts with other providers for the provision of such 
interventions; and

������������� (ii)� A local 
school district, which may be the same local school district that establishes a 
program-eligible interventions program.

��������� (g)� "School 
district" means any public school district organized under state law or 
charter school created pursuant to Section 37-28-1 et seq., Mississippi Code of 
1972.

��������� (h)� "State 
program" means the Pay for Success Contracts Program established in this 
section.

���� ���� (i)� "Success 
payments" means payments made to the lead contractor for meeting defined 
performance targets specified in a Pay for Success Contract.

���� (3)� Establishment of 
state Pay for Success Contracts Program and creation of the Pay for Success 
Contracts Fund.

��������� (a)� There is hereby 
established in the Department of Finance and Administration the state Pay for 
Success Contracts Program.� The purpose of the state program is to provide 
authorization subject to specified requirements and limitations, for the 
Department of Finance and Administration to enter into Pay for Success 
Contracts with one or more lead contractors for the provision of program-eligible 
interventions.

��������� (b)� Before entering 
into a Pay for Success Contract authorized by this section:� (i) the Department 
of Finance and Administration; (ii) one or more local school districts; or 
(iii) the Department of Finance and Administration and one or more local school 
districts shall conduct a request for proposal process.� The request for 
proposal must describe the desired population to be served, desired outcomes, 
and the potential duration of a Pay for Success Contracts Program and may 
include performance targets.� The Department of Finance and Administration 
shall make a request