BILL NUMBER: SB 593 AMENDED
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.