Pay-for-success programs

1. Law
2. Arkansas Code
3. Law Enforcement, Emergency Management, and Military Affairs
4. Correctional Facilities and Programs
5. Division of Correction — Division of Community Correction
6. Pay-for-Success Act
7. Pay-for-success programs

1. (a) The Division of Community Correction may enter into an agreement with entities, including without limitation licensed or accredited, as applicable, community-based providers specializing in behavioral health, case management, and job placement services, and two-year or four-year public universities to create a pay-for-success program for incarcerated individuals or individuals on parole or probation that requires the division to pay for the intervention services only if the performance targets stated in the agreement are achieved.

2. (b) Before entering into an agreement under subsection (a) of this section, the division shall:

   1. (1) Calculate the amount and timing of the payments that would be earned by the entity providing the intervention services during each year of the agreement if the performance targets are achieved; and

   2. (2) Make a written determination that the agreement will result in specific performance improvements and budgetary savings if the performance targets are achieved.

3. (c) An agreement entered into under subsection (a) of this section:

   1. (1) Shall include the following:

      1. (A) A requirement that payment be conditioned on the achievement of specific outcomes based on defined performance targets; and

      2. (B) An agreement with an independent third party to evaluate the pay-for-success program to determine whether the performance targets have been achieved;

   2. (2) May contain a graduated payment schedule to allow for varying payments based on different levels of performance targets; and

   3. (3) May include without limitation an agreement with one (1) or more private entities regarding the following:

      1. (A) One (1) or more loans to fund the pay-for-success program's delivery and operations;

      2. (B) One (1) or more guarantees for loans obtained under this section;

      3. (C) Payment based on reduced rates of reincarceration or other agreed-upon measures of success; and

      4. (D) Oversight and implementation of the pay-for-success program, including without limitation the following:

         1. (i) Making necessary financial arrangements;

         2. (ii) Training staff;

         3. (iii) Selecting service providers;

         4. (iv) Overseeing the intervention measures;

         5. (v) Monitoring pay-for-success program participation; and

         6. (vi) Designation of one (1) entity to serve as a liaison among all parties to the agreement.

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