Oklahoma HB 2670: Public finance; creating the Pay for Success Act; legislative intent; contracts; creating the Pay for Success Innovation Fund; Office of Management and Enterprise Services; effective date.

Bill Text

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STATE OF OKLAHOMA

1st Session of the 57th Legislature (2019)

HOUSE BILL 2670 By: Wallace

AS INTRODUCED

An Act relating to public finance; creating the Pay
for Success Act; allowing for specific citation;
stating legislative intent; defining certain phrases;
authorizing certain contracts under certain
conditions; prohibiting certain contracts under
certain conditions; requiring certain contract
elements; requiring certain annual reports; requiring
provision of certain reports to certain individuals
by certain date; placing requirements and limitations
on certain payments; authorizing payments from
certain fund sources; creating the Pay for Success
Innovation Fund; designating the fund to the Office
of Management and Enterprise Services; describing the
nature and limitations of the fund; authorizing
budgeting and expenditure of funds for certain
purposes under certain conditions; providing for the
return to agencies of unpaid amounts under certain
conditions; authorizing the entrance into memorandums
of understanding; authorizing the promulgation of
rules; providing for codification; and providing an
effective date.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 9010.1 of Title 62, unless there
is created a duplication in numbering, reads as follows:
This act shall be known and may be cited as the "Pay for Success
Act".

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SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 9010.2 of Title 62, unless there
is created a duplication in numbering, reads as follows:
A. It is the intent of the Legislature, through enactment of
the Pay for Success Act, to:
1. Authorize innovation opportunities in the form of pay-for-
success contracts and authorize success payments to be made from
appropriated or other agency funds;
2. Address outcomes that span the mission and purpose of
multiple agencies; and
3. Provide a fund that may be used by agencies for success
payments.
B. It is the intent of the Legislature that nothing in this act
shall prohibit the use of pay-for-success contracts by
municipalities, counties or other local jurisdictions.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 9010.3 of Title 62, unless there
is created a duplication in numbering, reads as follows:
As used in the Pay for Success Act:
1. "Pay–for-success contract" or "contract" means a written
agreement executed in order to create a public-private partnership
contingent upon a specified service or program meeting specified
performance targets and outcome measures; and

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2. "Success payment" means a single payment or schedule of
payments that is identified in a pay-for-success contract to be paid
when specified performance targets and outcome measures are met.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 9010.4 of Title 62, unless there
is created a duplication in numbering, reads as follows:
A. An agency or agencies may enter into a pay-for-success
contract with a private entity or entities to receive up-front
capital to fund a service or program. The agency or agencies may
not enter into a pay-for-success contract until each state agency
head entering into the contract determines with reasonable certainty
that the contract will result in a public benefit to the state.
B. Each pay-for-success contract shall:
1. Require a private entity to underwrite or secure up-front
capital from private funding sources, including foundations,
financial institutions, businesses or individuals;
2. Identify the specific service or program to be funded under
the contract;
3. Identify performance targets and outcome measures against
which the service or program's success can be measured to determine
whether the service or program has achieved quantifiable public
benefits or monetary savings;
4. Require and specify an independent third-party evaluator to
review and issue reports annually at specific times during the

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contract term specifying the degree to which the service or program
has met the identified performance targets and outcome measures
specified in the contract;
5. Identify the calculation or algorithm to be used by the
agency or agencies in determining the amount and timing of
reimbursable success payments to the private entity;
6. Contain a statement that the independent third-party
evaluator will annually provide a report to the agency or agencies
that includes data deemed relevant by the agency or agencies; and
7. State that the amount of funds to be reimbursed to the
private entity is contingent up