Gov. John Carney will sign Senate Bill 242 today at the Blood Bank of Delmarva. The bill creates “Pay for Success” contracts, which encourage private funding of economic development and social programs by offering a return on investment for positive results.
Under one of these contracts, a state agency would agree to repay an organization or investor that provides program support or upfront capital to a successful economic development or social project.
The contract would outline performance measures to determine what success looks like and how the partner will be repaid. A third party evaluator would determine if goals are met.
The General Assembly first passed a bill to explore Pay for Success contracts in June 2017. State Sen. John Walsh introduced this latest bill.
A similar bill at the federal level passed earlier this year.