BILL NUMBER: AB 1837	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Atkins

                        FEBRUARY 18, 2014

   An act to add Section 12096.3.7 to the Government Code, relating
to state government.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1837, as introduced, Atkins. Governor's Office of Business and
Economic Development.
   The Economic Revitalization Act establishes the Governor's Office
of Business and Economic Development, also known as "GO-Biz," to,
among other duties, serve the Governor as the lead entity for
economic strategy and the marketing of California on issues relating
to business development, private sector investment, and economic
growth.
   This bill would require GO-Biz to serve as the lead entity for
efforts to explore social innovation financing, defined as an
investment arrangement using private funding to finance a social
program administered by a nonprofit organization or for-profit
service provider on behalf of a government agency pursuant to a
performance-based contract. This bill would also require GO-Biz to
develop model provisions for performance-based contracts that allow
private investors to provide up-front financing to service providers
to achieve preagreed upon social outcomes and require a contracting
government agency to pay the private investor a return on investment
if successful programmatic outcomes are achieved by the service
provider.
   This bill would also make legislative findings and declarations in
this regard.
   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.  The Legislature finds and declares all of the
following:
   (a) It is the intent of the Legislature to establish partnerships
between government agencies, private investors, nonprofit
organizations, and for-profit service providers to facilitate the use
of social innovation financing to achieve measurable social
benefits.
   (b) The focus of initial social innovation financing efforts
should be towards decreasing recidivism rates in our criminal justice
system, reducing homelessness, and promoting workforce development.
  SEC. 2.  Section 12096.3.7 is added to the Government Code, to
read:
   12096.3.7.  (a) The office shall serve as the lead entity for
efforts to explore social innovation financing and provide technical
assistance to local governments that are exploring the creation of
social innovation financing.
   (b) The office shall develop model provisions for
performance-based contracts.
   (c) For purposes of this section only, the following terms shall
have the following meanings:
   (1) "Performance-based contracts" means contractual agreements
between government, private investors, and service providers where
private investors agree to provide up-front financing to service
providers to achieve preagreed upon social outcomes and the
government agency agrees to pay a return on investment to the
investors if successful programmatic outcomes are achieved by the
service provider.
   (2) "Social innovation financing" means an investment arrangement
using private funding to finance a social program administered by a
nonprofit organization or for-profit service provider on behalf of a
government agency pursuant to a performance-based contract.