MS SB2147

Establishes the "Pay for Success Contracts Program" in the Department of Finance and Administration to enter into contracts with lead contractors who provide services aimed at improving student achievement and outcomes, with payment contingent on meeting defined performance targets.

Requires a request for proposal process before entering contracts, with contracts specifying the type and duration of interventions (maximum 7 years unless performance targets are met), performance metrics, evaluation procedures, and payment schedules.

Creates the Pay for Success Contracts Fund in the State Treasury, funded by legislative appropriations and monies from reductions in state spending resulting from successful program interventions, with payments subject to annual legislative appropriation.

Allows one or more local school districts to be additional parties to state contracts with approval from the Department of Finance and Administration, with allocation of payment responsibilities between state and districts based on achievement of performance targets.

Prohibits investors from dictating service delivery methods unrelated to success measures, requires independent evaluators to assess performance, mandates public availability of contracts and annual summaries of results, and includes 90-day termination notice requirements with transition plans.