Bill > SB7

This bill creates a new "pay for success" contracting mechanism, where the state can enter into contracts with private service providers to deliver certain social, employment, or correctional services. The key provisions of the bill are: 1. The Department of Administration can enter into "pay for success contracts" with private service providers, where the majority of the contract payment is conditioned on the provider achieving specified performance measures. 2. The Department must make a deposit into a new "Pay for Success Trust Fund" to cover the contract payments, and any unused funds or recovered overpayments will be returned to the general fund. 3. The Department must notify the Joint Committee on Finance before executing a contract, and the Committee must approve the contract if they schedule a meeting to review it. 4. The Departments of Health Services, Corrections, Children and Families, and Workforce Development are required to study the potential use of "pay for success" contracting in their programs and submit reports to the legislature. The bill aims to incentivize private service providers to achieve desired outcomes by tying their compensation to performance, while also providing legislative oversight over the new contracting process.