(a) In this section, “pay for success program” means a program involving private financing under which payments are dependent on achievement of measurable outcomes.
(b) The commissioner may:
(1) structure and approve pay for success programs for use by a school district or open-enrollment charter school;
(2) evaluate and approve the following participants in a pay for success program:
(A) a private investor;
(B) an education service provider; and
(C) a third-party evaluator; and
(3) require an approved participant to comply with the objectives, metrics, and other pay for success program requirements prescribed by the commissioner.

(c) In evaluating a potential participant under Subsection (b)(2), the commissioner may:
(1) verify the availability and liquidity of the investment funds of a private investor;
(2) evaluate the credentials and effectiveness of an education service provider; and
(3) evaluate the credentials and independence of a third-party evaluator.
(d) Notwithstanding any other law, a school district or open-enrollment charter school that uses a pay for success program approved by the commissioner is not subject to state procurement requirements that would otherwise apply to the activity funded through the program.
(e) The commissioner, the agency, and agency employees are immune from liability for actions associated with the structuring, approval, or implementation of a pay for success program.
(f) The commissioner may adopt rules as necessary to implement this section.