Oklahoma § 62-9010.4 - Pay-for success contract requirements

§ 62-9010.4. Pay-for success contract requirements

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

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;

Oklahoma Statutes - Title 62. Public Finance

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 upon the degree to which the service or

program has met the performance targets and outcome measures as

evaluated by the independent third-party evaluator.

C. No later than April 1 annually, the agency or agencies shall

provide a report to the chairs of the legislative appropriations

committees that contains the evaluation from the independent thirdparty evaluator.

D. Payments to private entities for the delivery of performance

targets and outcome measures as authorized in this section shall be

made only in accordance with the terms of the pay-for-success

contract. Payments may be made utilizing the Pay for Success

Innovation Fund created in Section 5 of this act or utilizing other

appropriated agency funds in accordance with Oklahoma law.

Added by Laws 2019, c. 202, § 4, eff. Nov. 1, 2019.