(A) As used in this section and sections 113.61 and 113.62 of the Revised Code:

1. (1) "Service intermediary" means a person or entity that enters into a pay for success contract under this section and sections 113.61 and 113.62 of the Revised Code. The service intermediary may act as the service provider that delivers the services specified in the contract or may contract with a separate service provider to deliver those services.
2. (2) "State agency" and "political subdivision" have the same meanings as in section 9.23 of the Revised Code.

(B) The treasurer of state shall administer the pay for success contracting program, shall develop procedures for awarding pay for success contracts, and may take any action necessary to implement and administer the program. Under the program, the treasurer of state may enter into a pay for success contract with a service intermediary for the delivery of specified services that benefit the state, a political subdivision, or a group of political subdivisions, such as programs addressing education, public health, criminal justice, or natural resource management. In the case of a contract for the delivery of services that benefit the state, the treasurer of state shall enter into the contract jointly with the director of administrative services. The treasurer of state and, as applicable, the director of administrative services, may enter into a pay for success contract under either of the following circumstances:

1. (1) Upon receiving an appropriation from the general assembly for the purpose of entering into a pay for success contract;

2. (2)

   1. (a) At the request of a state agency, a political subdivision, or a group of state agencies or political subdivisions that the treasurer of state and, as applicable, the director of administrative services, enter into a pay for success contract on behalf of the requesting state agency, political subdivision, or group. The requesting state agency, political subdivision, or group shall deposit the cost of the contract with the treasurer of state in the appropriate fund established in section 113.62 of the Revised Code.
   2. (b) A political subdivision or group of political subdivisions that requests the treasurer of state to enter into a pay for success contract on behalf of the political subdivision or group shall not use state funds to pay the cost of the contract.
   3. (c) The treasurer of state may apply for federal grant moneys on behalf of a requesting state agency, political subdivision, or group to pay the cost of all or part of the contract. The treasurer of state shall not apply for federal grant moneys for the purpose of entering into a pay for success contract without first entering into an agreement with a requesting state agency, political subdivision, or group for the treasurer of state to apply for those moneys.

(C) The treasurer of state may adopt rules in accordance with Chapter 119. of the Revised Code to administer the pay for success contracting program, including rules concerning both of the following:

1. (1) The procedure for a state agency, political subdivision, or group of state agencies or political subdivisions to request the treasurer of state and, as applicable, the director of administrative services to enter into a pay for success contract and to deposit the cost of the contract with the treasurer of state;
2. (2) The types of services that are appropriate for a service provider to provide under a pay for success contract.

(D) The rules of the treasurer of state shall include both of the following:

1. (1) A requirement that for not less than seventy-five per cent of the pay for success contracts entered into under this section, the performance targets specified in the contract require that, based on available regional or national data, the improvement in the status of this state or the relevant area of this state with respect to the issue the contract is meant to address be greater than the average improvement in status with respect to that issue in other geographical areas during the period of the contract;
2. (2) A process to ensure that any regional or national data used to determine whether a service provider has met its performance targets under a pay for success contract are scientifically valid.