H.B. No. 3014
  relating to the administration of "pay for success" contracts for
  state agencies.
         SECTION 1.  Subchapter G, Chapter 403, Government Code, is
  amended by adding Section 403.110 to read as follows:
  The success contract payments trust fund is established as a trust
  fund outside the state treasury with the comptroller as trustee.
         (b)  The trust fund is established to provide a fund from
  which the comptroller as trustee may make success contract payments
  due in accordance with the contract terms without the necessity of
  an appropriation for the contract payment.
         (c)  The trust fund consists of money 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.
         (d)  Notwithstanding any other law, a state agency and the
  comptroller jointly may enter into a success contract with any
  person the terms of which must include:
               (1)  that a majority of the contract payment is
  conditioned on the contractor meeting or exceeding certain
  specified performance measures toward the outcome of the contract's
               (2)  a defined objective procedure by which an
  independent evaluator is to determine whether the specified
  performance measures have been met or exceeded; and
               (3)  a schedule of the amounts and timing of payments to
  be earned by the contractor during each year or other specified
  period of the contract that indicates the payment amounts
  conditioned on meeting or exceeding the specified performance
         (e)  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)  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
  state treasury fund or account from which the money was
         (g)  Each state agency shall provide to each legislature not
  later than the first day of the regular legislative session a report
               (1)  provides details about the success in achieving
  the specified performance measures of each success contract the
  state agency has entered into under this section that has not
  expired or been terminated or that expired or was terminated since
  the date of the preceding report under this subsection; and
               (2)  provides details about proposed success contracts
  that the state agency has not executed at the time of the report.
         (h)  The comptroller may adopt rules as necessary to
  administer this section or success contracts entered into under
  this section, including joint rules adopted with other agencies
  that may be party to success contracts under this section.
         SECTION 2.  This Act takes effect September 1, 2015.
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
         I certify that H.B. No. 3014 was passed by the House on April
  27, 2015, by the following vote:  Yeas 137, Nays 0, 1 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 3014 on May 26, 2015, by the following vote:  Yeas 141, Nays 4,
  2 present, not voting.
  Chief Clerk of the House   
         I certify that H.B. No. 3014 was passed by the Senate, with
  amendments, on May 22, 2015, by the following vote:  Yeas 29, Nays
  Secretary of the Senate   
  APPROVED: __________________