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 wouldbegin delete require the directorend deletebegin insert authorize the Directorend insert of the Office of Planning and Research to identify and submitbegin delete at least 3end delete 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 thesebegin delete provisions.end deletebegin insert provisions and to establish an application fee to cover the expenses of the office.end insert 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:
Title 15.5 (commencing with Section 97000) is
2added to the Government Code, to read:
3
6
(a) For purposes of this title, “social impact
10partnership,” also referred to as a “pay for success contract,” means
11a contract for services provided to address a defined demographic
12group’s particular needs that are traditionally addressed through
13state programs and funding therefor, in order to improve outcomes
14and lower costs because payment is made only after measured
15results are achieved.
16(b) “Director” means thebegin delete directorend deletebegin insert Directorend insert of the Office of
17Planning and Research established
pursuant to Section 65037.
(a) The Office of Planning and Research shall conduct
19the Social Impact Partnerships Pilot
Program.
20(b) (1) The directorbegin delete shallend deletebegin insert mayend insert identify and submitbegin delete at least threeend delete
21 proposed social impact partnerships to thebegin delete Chair of the Assembly begin insert chairs of the Senate and Assembly
22and Senate Budget Committeesend delete
23budget committeesend insert and thebegin delete Chairend deletebegin insert chairsend insert
of the relevant
24subcommittee for consideration with the May Revision of the
25Governor’s Budget each year beginning in 2015.
26(2) Prior to the submission of any proposed social impact
27partnerships, the director shall consult with the appropriate state
28agency or department responsible for administering any affected
29state program.
30(3) At a minimum, each submission shall include all of the
31following:
32(A) A description of the proposed social program.
33(B) A description of the organization’s experience in providing
34the proposed social program.
35(C) A description of the financial stability of the organization.
P3 1(D) An identification of each component of the social program
2to be provided.
3(E) A description of how the social program will be provided.
4(F) A description of the recruitment or selection process, or
5both, for participants in the social program.
6(G) The proposed quantifiable results upon which success of
7the social program will be measured.
8(H) An itemization of all expenses proposed to be reimbursed
9under the contract.
(a) Upon appropriation of sufficient funds by the
11Legislature, the director shall enter into a contract with the
12approved applicant.
13(b) Each contract shall include all of the following:
14(1) A requirement that the payment be conditioned on the
15achievement of specific outcomes based upon defined performance
16targets.
17(2) An objective process by which an independent evaluator,
18selected by the director, will determine whether the performance
19targets have been achieved.
20(3) A
calculation of the amount and timing of payments that
21would be earned by the service provider during each year of the
22agreement if performance targets are achieved as determined by
23the independent evaluator.
24(4) A determination by the director that the contract will result
25in significant performance improvements and budgetary savings
26across impacted agencies or departments if the performance targets
27are achieved.
28(c) The director shall not enter into any contract that exceeds
29the funds appropriated for it by the Legislature.
(a) The Social Innovation Financing Trust Fund is
31hereby created in the State Treasury. All funds appropriated by
32the Legislature pursuant to Section 97002 shall be deposited into
33the Social Innovation Financing Trust Fund.
34(b) Social impact partnership contracts entered into by the office
35with approved applicants shall be paid from the Social Innovation
36Financing Trust Fund.
begin insert(a)end insertbegin insert end insertThe Office of Planning and Research may adopt
38regulations to implement this title.
39(b) The office shall adopt an application fee that is sufficient to
40cover the expenses incurred by the office, including startup costs.
The director shall report annually to the Governor and
2Legislature on the status of each ongoing social impact partnership,
3including, but not limited to, a description of the desired outcome
4and an overview of the independent evaluator’s findings. The
5report shall also contain an accounting of the Social Innovation
6Financing Trust Fund.
This title shall not create a statutory entitlement to
8services or any contractual obligation on the part of the state. It is
9the intent of the Legislature that a proposed contract under Section
1097001 is subject to legislative review and approval before its
11execution, and that any appropriation only occur after the review
12and approval.
This title shall be repealed on January 1, 2020.
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