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A BILL TO BE ENTITLED
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AN ACT
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relating to the administration of "pay for success" contracts for |
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state agencies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 403.110(c), (e), and (f), Government |
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Code, are amended to read as follows: |
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(c) The trust fund consists of money gifted, granted, |
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donated, or appropriated for deposit to the credit of the trust fund |
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and any interest or other earnings attributable to the trust fund. |
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The comptroller shall hold money credited to the trust fund for use |
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only for payments due in accordance with success contract terms and |
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expenses incurred in administering the trust fund or in |
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administering the success contracts for which the trust fund is |
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established. The balance of the trust fund may not exceed $50 |
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million at any time. The comptroller may establish in the trust fund |
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one or more accounts to administer money for a particular success |
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contract for which money has been credited to the trust fund. |
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(e) A contract executed under this section is not |
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enforceable until [The comptroller and a state agency may not
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finally execute a proposed success contract under this section
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unless]: |
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(1) the state agency and the Legislative Budget Board |
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certify that the proposed contract is expected to result in |
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significant performance improvements and significant budgetary |
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savings for the state agency or agencies party to the contract if |
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the performance targets are achieved; and |
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(2) a grantor or donor has gifted, granted, or |
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donated, or the legislature has appropriated for deposit to the |
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credit of the trust fund, contingent on the execution of the |
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contract, an amount of money necessary to administer the contract |
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and make all payments that may become due under the contract over |
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the effective period of the contract. |
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(f) The comptroller shall make the contract payments for the |
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success contracts only from the trust fund and only in accordance |
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with the terms of the success contracts. The comptroller shall |
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deposit to the credit of the trust fund any money the comptroller |
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recovers from a contractor for overpayment or for a penalty or other |
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amount recoverable under the terms of a success contract and shall |
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hold the money in the trust fund in the same manner as the money held |
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for payments for the success contract. To the extent that any money |
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credited to the trust fund for a particular success contract |
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remains unpaid at the time the particular contract expires or is |
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terminated, as soon after the contract expiration as is |
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practicable, the comptroller shall return the unpaid amount to the |
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grantor, donor, or state treasury fund or account from which the |
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money was gifted, granted, donated, or appropriated. |
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SECTION 2. This Act takes effect September 1, 2019. |