HB 15-1317 Summary: Pay For Success Contracts Act

• Establishes the Pay For Success Contracts Program in Colorado allowing the state office to enter into performance-based contracts with lead contractors to provide eligible interventions improving economic opportunity and child development outcomes.

• Requires a competitive request for proposal process before entering contracts, with contracts publicly posted and subject to public comment, detailing performance targets, provider roles, and program duration limited to seven years unless performance targets are met.

• Creates the Pay For Success Contracts Fund in the state treasury to be funded by moneys from state spending reductions resulting from the programs and other appropriations, with funds used to make success payments to lead contractors meeting defined performance targets.

• Prohibits investors funding programs from dictating service delivery methods unrelated to success measures, requires independent evaluators to objectively assess whether performance targets were achieved, and mandates annual public reporting of targets met/unmet and success payments made.

• Allows local governments (counties, municipalities, school districts) to participate as additional contract parties if approved by their chief financial officers and governing bodies, and does not exempt parties from applicable federal, state, or local laws.