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  84R94 KKR-D
 
  By: White of Tyler H.B. No. 309
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a study on the feasibility and potential costs and
  benefits of implementing a pay-for-performance contract program
  for certain juvenile justice programs and services.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  (a) In this section, "department" means the
  Texas Juvenile Justice Department.
         (b)  The department shall conduct a study to determine the
  feasibility and potential costs and benefits to this state of
  implementing a pay-for-performance contract program under which
  the department would:
               (1)  contract with an administrator for the operation
  of juvenile justice programs or the provision of juvenile justice
  services, the operation or provision of which would be funded using
  investor-provided financial capital; and
               (2)  make contract payments to the administrator using
  general obligation bond proceeds or other available money only if
  specified performance requirements for and outcomes from the
  programs and services are achieved and the return on investment to
  this state is positive, thereby rewarding successful results and
  shifting the financial risk from this state.
         (c)  The department may request assistance and information
  from the comptroller of public accounts, the Texas Public Finance
  Authority, or any other state agency as necessary to conduct the
  study required by this section.
         (d)  Not later than November 1, 2016, the department shall
  submit a report on the results of the study to the governor, the
  lieutenant governor, and the presiding officers of the standing
  committees of the senate and house of representatives having
  jurisdiction over juvenile justice programs and services. The
  report must indicate whether and to what degree implementing a
  pay-for-performance program described by Subsection (b) of this
  section would be cost-effective and feasible, as determined by the
  department.  If the department determines a pay-for-performance
  program would be cost-effective and feasible, the report must:
               (1)  make recommendations regarding the manner in which
  the department could effectively operate the program and the types
  of juvenile justice programs and services that would be selected
  for the program; and
               (2)  identify any changes in law necessary for
  implementation of the program.
         (e)  This section expires January 1, 2017.
         SECTION 2.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2015.