| 11 | 11 | | |
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| 12 | 12 | | AN ACT CONCERNING SOCIAL INNOVATION. |
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| 13 | 13 | | |
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| 14 | 14 | | Be it enacted by the Senate and House of Representatives in General Assembly convened: |
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| 15 | 15 | | |
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| 16 | 16 | | Section 1. Section 4-68aa of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2015): |
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| 17 | 17 | | |
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| 18 | 18 | | (a) As used in this section: |
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| 19 | 19 | | |
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| 20 | 20 | | (1) "Savings" means a reduction in state expenditures, as such expenditures are defined in an outcome-based performance contract; |
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| 21 | 21 | | |
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| 22 | 22 | | [(1)] (2) "Secretary" means the Secretary of the Office of Policy and Management, or the secretary's designee; |
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| 23 | 23 | | |
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| 24 | 24 | | [(2)] (3) "Social innovation investment enterprise" means an entity (A) created to coordinate the delivery of preventive social programs by nonprofit service providers, [which] and (B) that has the capability of creating a social investment vehicle, entering into outcome-based performance contracts and contracting with service providers; |
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| 25 | 25 | | |
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| 26 | 26 | | [(3)] (4) "Social investment vehicle" means an investment product established by a social innovation investment enterprise to raise private investment capital; [and] |
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| 27 | 27 | | |
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| 28 | 28 | | [(4)] (5) "Outcome-based performance contract" means a contract entered into between the secretary or an agency authorized by the secretary and a social innovation investment enterprise that establishes outcome-based performance [standards] benchmarks for preventive social programs delivered by nonprofit service providers and provides that investors in any social investment vehicle shall receive a return of their investment and earnings thereon only if such outcome-based performance [standards] benchmarks are met by the non-profit service providers contracted with the social innovation investment enterprise; and |
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| 29 | 29 | | |
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| 30 | 30 | | (6) "Preventive social program" means a program designed to reduce, reverse or eliminate societal problems, including, but not limited to, poverty, homelessness, unemployment, poor academic achievement, offender recidivism, child abuse and neglect, juvenile delinquency and poor health. |
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| 31 | 31 | | |
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| 32 | 32 | | (b) The secretary, or an agency authorized by the secretary, may enter into an outcome-based performance contract with a social innovation investment enterprise for the purpose of [accepting a United States Department of Justice fiscal year 2012 Second Chance Act Adult Offender Reentry Program Demonstration Category 2 Implementation grant. The outcome-based performance contract between the secretary and a social innovation investment enterprise may provide for payments from the social innovation account, established pursuant to subsection (d) of this section, to the social innovation investment enterprise or to investors or to both.] delivering preventive social programs. The outcome-based performance contract shall be based on a written proposal deemed sufficient by the secretary that demonstrates savings will be generated by the social innovation investment enterprise through the accelerated achievement of outcome-based performance benchmarks. |
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| 33 | 33 | | |
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| 34 | 34 | | (c) Any outcome-based performance contract authorized by the secretary, pursuant to the provisions of this section, shall include, but not be limited to: (1) Payment conditioned on the achievement of outcome-based performance benchmarks; (2) an objective determination by an independent evaluator that the outcome-based performance benchmarks have been met; (3) a calculation of the amount and timing of payments that would be earned by the providers of capital in the social investment vehicle each year of the contract if outcome-based performance benchmarks are achieved; (4) a provision concerning appropriation requests for each fiscal year for the nonlapsing social innovation account, established pursuant to this section, in an amount equal to the expected payments that the state would ultimately be obligated to pay if outcome-based performance benchmarks were achieved; and (5) a fiscal analysis by the secretary or any agency authorized by the secretary as to projected savings in specific governmental service areas related to achievement of outcome-based performance benchmarks. |
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| 35 | 35 | | |
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| 36 | 36 | | (d) When considering entering into an outcome-based performance contract with a social innovation investment enterprise, the secretary, or any agency authorized by the secretary, shall present to the joint standing committees of the General Assembly having cognizance of matters concerning the preventive social program and appropriations and the budgets of state agencies: (1) A summary statement that shall include policy areas to be addressed by such contract; (2) the preventive social program to be delivered; (3) a general description of outcome-based performance benchmarks and metrics to be used to measure whether such benchmarks were achieved; and (4) a general estimate of savings. |
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| 37 | 37 | | |
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| 38 | 38 | | (e) After entering into an outcome-based performance contract with a social innovation investment enterprise, the secretary, or any agency authorized by the secretary, shall present to said joint standing committees, the terms and conditions of the contract, along with the executive summary of the agreement, detailing: (1) The social innovation investment for which the contract is being entered into; (2) the outcome-based performance benchmarks being used; (3) a calculation of the amount and timing of state payments if outcome-based performance benchmarks are achieved; (4) projected savings in specific governmental service areas related to achievement of outcome-based performance benchmarks; and (5) projected appropriations necessary for fiscal years subsequent to the current biennium to fund the social innovation account established pursuant to this section. |
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| 39 | 39 | | |
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| 40 | 40 | | (f) For each outcome-based performance contract entered into pursuant to this section, the secretary, or any agency authorized by the secretary, shall report annually during the contract period and not later than six months after the conclusion of the contract period on the status of such contracts to said joint standing committees. Such report shall include information on (1) the achievement by the non-profit service provider of outcome-based performance benchmarks; (2) returns on investment for the social investment vehicle; and (3) fiscal analyses of savings achieved in specific governmental service areas related to the contract. |
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| 41 | 41 | | |
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| 42 | 42 | | [(c)] (g) The secretary, or any agency authorized by the secretary pursuant to subsection (b) of this section, shall comply with the provisions of section 4e-16 relating to privatization contracts when entering into an outcome-based performance contract with a social innovation investment enterprise pursuant to this section. |
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| 43 | 43 | | |
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| 44 | 44 | | [(d)] (h) There is established an account to be known as the "social innovation account" which shall be a separate, nonlapsing account within the General Fund. The account shall contain any moneys required by law to be deposited in the account. Any interest accruing to the account shall be credited to the account. Moneys may be transferred to the account from the General Fund. Moneys in the account shall be expended by the [Secretary of the Office of Policy and Management for the purposes of facilitating the reentry of moderate and high-risk offenders into the community] secretary, or any agency authorized by the secretary, solely to provide payments to the social innovation enterprise, investors, or both, and related administrative costs, in accordance with the terms of an outcome-based performance contract. The secretary, or any agency authorized by the secretary, may apply for and accept gifts, grants or donations from public or private sources to enable the account to be a source of payments to investors purchasing interests in a social investment vehicle. |
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| 45 | 45 | | |
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| 46 | 46 | | |
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| 47 | 47 | | |
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| 48 | 48 | | |
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| 49 | 49 | | This act shall take effect as follows and shall amend the following sections: |
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| 50 | 50 | | Section 1 July 1, 2015 4-68aa |
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| 51 | 51 | | |
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| 52 | 52 | | This act shall take effect as follows and shall amend the following sections: |
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| 53 | 53 | | |
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| 54 | 54 | | Section 1 |
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| 55 | 55 | | |
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| 56 | 56 | | July 1, 2015 |
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| 57 | 57 | | |
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| 58 | 58 | | 4-68aa |
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| 59 | 59 | | |
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