California Senate Bill SB593 Amended / Bill

 BILL NUMBER: SB 593AMENDED BILL TEXT AMENDED IN SENATE JANUARY 27, 2014 AMENDED IN SENATE JANUARY 6, 2014 AMENDED IN SENATE APRIL 23, 2013 INTRODUCED BY Senator Lieu FEBRUARY 22, 2013 An act to add and repeal Title 15.5 (commencing with Section 97000) of the Government Code, relating to social impact partnerships. LEGISLATIVE COUNSEL'S DIGEST SB 593, as amended, Lieu. Social impact partnerships: pilot program. Existing law establishes the Office of Planning and Research and sets forth its powers and duties as the comprehensive state planning agency. This bill would require the Office of Planning and Research to conduct the Social Impact Partnership Pilot Program. The bill would  require the director   authorize the Director  of the Office of Planning and Research to identify and submit  at least 3  proposed social impact partnerships to the Legislature for consideration with the May Revision of the Governor's Budget each year beginning in 2015. The bill would create the Social Innovation Financing Trust Fund from which funds appropriated by the Legislature would be spent on contracts entered into by the office with approved applicants, as specified. The bill would authorize the office to adopt regulations to implement these  provisions.   provisions and to establish an application fee to cover the expenses of the office.  The bill would also require the director to report annually to the Governor and Legislature on the status of ongoing social impact partnerships and the Social Innovation Financing Trust Fund, as specified. This bill would repeal these provisions on January 1, 2020. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Title 15.5 (commencing with Section 97000) is added to the Government Code, to read: TITLE 15.5. SOCIAL IMPACT PARTNERSHIPS PILOT PROGRAM CHAPTER 1. GENERAL 97000. (a) For purposes of this title, "social impact partnership," also referred to as a "pay for success contract," means a contract for services provided to address a defined demographic group's particular needs that are traditionally addressed through state programs and funding therefor, in order to improve outcomes and lower costs because payment is made only after measured results are achieved. (b) "Director" means the  director   Director  of the Office of Planning and Research established pursuant to Section 65037. 97001. (a) The Office of Planning and Research shall conduct the Social Impact Partnerships Pilot Program. (b) (1) The director  shall  may  identify and submit  at least three  proposed social impact partnerships to the  Chair of the Assembly and Senate Budget Committees   chairs of the Senate and Assembly budget committees  and the  Chair   chairs  of the relevant subcommittee for consideration with the May Revision of the Governor's Budget each year beginning in 2015. (2) Prior to the submission of any proposed social impact partnerships, the director shall consult with the appropriate state agency or department responsible for administering any affected state program. (3) At a minimum, each submission shall include all of the following: (A) A description of the proposed social program. (B) A description of the organization's experience in providing the proposed social program. (C) A description of the financial stability of the organization. (D) An identification of each component of the social program to be provided. (E) A description of how the social program will be provided. (F) A description of the recruitment or selection process, or both, for participants in the social program. (G) The proposed quantifiable results upon which success of the social program will be measured. (H) An itemization of all expenses proposed to be reimbursed under the contract. 97002. (a) Upon appropriation of sufficient funds by the Legislature, the director shall enter into a contract with the approved applicant. (b) Each contract shall include all of the following: (1) A requirement that the payment be conditioned on the achievement of specific outcomes based upon defined performance targets. (2) An objective process by which an independent evaluator, selected by the director, will determine whether the performance targets have been achieved. (3) A calculation of the amount and timing of payments that would be earned by the service provider during each year of the agreement if performance targets are achieved as determined by the independent evaluator. (4) A determination by the director that the contract will result in significant performance improvements and budgetary savings across impacted agencies or departments if the performance targets are achieved. (c) The director shall not enter into any contract that exceeds the funds appropriated for it by the Legislature. 97003. (a) The Social Innovation Financing Trust Fund is hereby created in the State Treasury. All funds appropriated by the Legislature pursuant to Section 97002 shall be deposited into the Social Innovation Financing Trust Fund. (b) Social impact partnership contracts entered into by the office with approved applicants shall be paid from the Social Innovation Financing Trust Fund. 97004.  (a)    The Office of Planning and Research may adopt regulations to implement this title.  (b) The office shall adopt an application fee that is sufficient to cover the expenses incurred by the office, including startup costs.  97005. The director shall report annually to the Governor and Legislature on the status of each ongoing social impact partnership, including, but not limited to, a description of the desired outcome and an overview of the independent evaluator's findings. The report shall also contain an accounting of the Social Innovation Financing Trust Fund. 97006. This title shall not create a statutory entitlement to services or any contractual obligation on the part of the state. It is the intent of the Legislature that a proposed contract under Section 97001 is subject to legislative review and approval before its execution, and that any appropriation only occur after the review and approval. 97007. This title shall be repealed on January 1, 2020.