Florida Senate - 2016 COMMITTEE AMENDMENT Bill No. SB 1200 Ì697668hÎ697668 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) 2 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. 62 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.