SB 9, as introduced, Price. State government: social innovation and entrepreneurship.
Existing law establishes the Governor’s Office of Business and Economic Development to 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 establish the Office of Social Innovation and Entrepreneurship Development within the Office of the Governor to establish partnerships with government agencies, private investors, nonprofit organizations, and for-profit service providers to facilitate the use of social impact bonds (SIBs), as defined, to address social services needs. The bill would require the office to develop a strategic plan for promoting SIBs, develop model provisions for performance-based contracts, and report annually to the Legislature on the use of SIBs.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Chapter 1.7 (commencing with Section 12099)
2is added to Part 2 of Division 3 of Title 2 of the Government Code,
3to read:
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7
For purposes of this chapter:
11(a) “Director” means the Executive Director of the Office of
12Social Innovation and Entrepreneurship.
13(b) “Office” or “OSIE” means the Office of Social Innovation
14and Entrepreneurship.
15(c) “Performance-based contract” means a contractual agreement
16in which a government agency agrees to pay more to a nonprofit
17organization or service provider if the results of the service exceed
18specified indicators of success and to pay less if results of the
19service fall short of those indicators of success.
20(d) “Social impact bond” means an investment
arrangement
21using private funding to finance a social program administered by
22a nonprofit organization or for-profit service provider on behalf
23of a government agency pursuant to a performance-based contract.
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The Office of Social Innovation and Entrepreneurship
28Development (OSIE) is hereby established in state government
29within the Office of the Governor. The office shall be administered
30by a director appointed by the Governor.
The Social Impact Fund is hereby established in the
32General Fund. Upon appropriation by the Legislature, funds
33deposited into the account shall be used by OSIE to facilitate the
34use of social impact bonds.
(a) OSIE shall establish partnerships with
4government agencies, private investors, nonprofit organizations,
5and for-profit service providers to facilitate the use of social impact
6bonds (SIBs) to address social services needs.
7(b) OSIE shall develop a strategic plan for promoting SIBs.
8(c) OSIE shall develop model provisions for performance-based
9contracts.
10(d) Commencing on January 1, 2015, and annually thereafter,
11OSIE shall report to the Legislature on the use of SIBs.
12(e) (1) The requirement for submitting a report imposed
under
13subdivision (d) is inoperative on January 1, 2019, pursuant to
14Section 10231.5.
15(2) A report submitted pursuant to subdivision (d) shall be
16submitted in compliance with Section 9795.
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