Florida Senate - 2016                        COMMITTEE AMENDMENT
       Bill No. SB 1200
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  01/26/2016           .                                

       The Committee on Governmental Oversight and Accountability
       (Hays) recommended the following:
    1         Senate Amendment (with title amendment)
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Section 287.05715, Florida Statutes, is created
    6  to read:
    7         287.05715 Pay-for-success contracts.—
    8         (1) As used in this section, the term:
    9         (a) “Pay–for-success contract” or “contract” means a
   10  contract between a state agency and a private entity to fund a
   11  high-quality program, as specified in the General Appropriations
   12  Act, to address a critical public problem with historically poor
   13  outcomes.
   14         (b) “Private entity” means a private, not-for-profit
   15  organization exempt from federal income taxation pursuant to s.
   16  501(c)3 of the Internal Revenue Code of 1986 which enters into a
   17  pay-for-success contract with a state agency and subcontracts
   18  with one or more entities to provide the actual services.
   19         (c) “Success payment” means the amount paid to a private
   20  entity that meets the performance outcome measures established
   21  in the pay-for-success contract.
   22         (2) Contingent upon authorization in the General
   23  Appropriations Act, a state agency may negotiate and enter into
   24  a pay-for-success contract with a private entity. The contract
   25  may be initiated in 1 fiscal year and continue into the next
   26  fiscal year and may be paid from appropriations in 1 or both
   27  fiscal years. The state agency shall:
   28         (a) Determine performance outcome measures to be included
   29  in the contract.
   30         (b) Determine the data to be included in an annual report
   31  filed by a private entity pursuant to subsection (4).
   32         (c) Select an independent, nationally recognized evaluator
   33  through a request for proposals process to annually evaluate the
   34  performance outcome measures specified in the contract.
   35         (d) Ensure that participants in the program or their
   36  guardians have given permission to share participant data and
   37  signed an acknowledgment that the data may be shared with an
   38  independent evaluator for research and evaluation purposes, and
   39  maintain documentation of the required acknowledgements.
   40         (3) A pay-for-success contract must:
   41         (a) Be limited to programs specified in the General
   42  Appropriations Act.
   43         (b) Require the private entity to underwrite or secure
   44  upfront capital from private funders, such as foundations,
   45  banks, or businesses, to fund the services provided under the
   46  subcontracts.
   47         (c) Require an independent evaluator to determine whether
   48  the specified performance outcomes have been achieved.
   49         (d) Require a success payment, consistent with the General
   50  Appropriations Act, only if the specified performance outcome
   51  measures are achieved.
   52         (e) Prohibit the private entity from receiving or viewing
   53  any personally identifiable participant information.
   54         (4) The private entity shall annually report to the state
   55  agency for the duration of the contract period.
   56         (5) Funding obtained for a high-quality program under this
   57  section is not a procurement item under s. 287.057.
   58         (6) By December 1, 2016, the department shall prescribe
   59  procedures to be used by state agencies in connection with pay
   60  for-success contracts which are consistent with this section.
   61         Section 2. This act shall take effect upon becoming law.
   63  ================= T I T L E  A M E N D M E N T ================
   64  And the title is amended as follows:
   65         Delete everything before the enacting clause
   66  and insert:
   67                        A bill to be entitled                      
   68         An act relating to the Pay-for-Success Contract
   69         Program; creating s. 287.05715, F.S.; defining terms;
   70         authorizing a state agency to enter into a pay-for
   71         success contract with a private entity under certain
   72         circumstances; specifying the duties of the state
   73         agency; providing contract requirements; requiring the
   74         private entity to annually report to the state agency;
   75         providing that a high-quality program is not a
   76         procurement item; requiring the Department of
   77         Management Services to prescribe certain procedures by
   78         a specified date; providing an effective date.