Florida Senate - 2016                                    SB 1200
       By Senator Bean
       4-00841A-16                                           20161200__
    1                        A bill to be entitled                      
    2         An act relating to the Pay-for-Success Contract
    3         Program; defining terms; requiring the Department of
    4         Management Services to oversee a Pay-for-Success
    5         Contract Program; authorizing the department,
    6         contingent upon funding, to negotiate and enter into
    7         contracts with private entities to fund high-quality
    8         programs; specifying the duties of the department;
    9         requiring the Office of Economic and Demographic
   10         Research to provide information to the department to
   11         assist in determining performance outcome measures;
   12         specifying contract requirements; requiring an
   13         independent evaluator to determine whether the
   14         performance outcome measures in a contract have been
   15         met; requiring the private entity to annually report
   16         to the department; requiring the office to estimate
   17         cost savings at the request of the department;
   18         providing that a high-quality program is not a
   19         procurement item; providing an effective date.
   21  Be It Enacted by the Legislature of the State of Florida:
   23         Section 1. Pay for success.—
   24         (1) As used in this section, the term:
   25         (a) “Pay-for-success contract” or “contract” means a
   26  contract entered into between the Department of Management
   27  Services and a private entity to fund a high-quality program
   28  specified in the General Appropriations Act. Under the contract,
   29  the private entity shall secure private-sector funding for the
   30  implementation of the program and shall enter into separate
   31  contracts with private providers to implement the identified
   32  program.
   33         (b) “Private entity” means a private, not-for-profit
   34  organization that enters into a pay-for-success contract with a
   35  service provider.
   36         (c) “Success payment” means the amount paid to a private
   37  entity that meets the performance outcome measures established
   38  in a pay-for-success contract.
   39         (2) The Department of Management Services shall oversee a
   40  Pay-for-Success Contract Program. The department may, contingent
   41  upon authorization in the General Appropriations Act, negotiate
   42  and enter into a pay-for-success contract with a private entity
   43  that is selected through a competitive process. The contract may
   44  be initiated in one fiscal year and continue into the next
   45  fiscal year and may be paid from the appropriations of one or
   46  both fiscal years. The department shall:
   47         (a) Determine performance outcome measures that must be
   48  included in the contract. The Office of Economic and Demographic
   49  Research and the appropriate state agency shall provide
   50  information to the department to assist in the determination of
   51  these measures.
   52         (b) Determine the data to be included in an annual report
   53  filed by a private entity pursuant to subsection (5).
   54         (c) Select an independent, nationally recognized evaluator
   55  through a request for proposals process to annually evaluate the
   56  performance outcome measures specified in the contract.
   57         (d) Ensure that participants of the high-quality program or
   58  their guardians have given permission and signed an
   59  acknowledgment that participant data may be shared with an
   60  independent evaluator for research and evaluation purposes and
   61  maintain documentation of the required acknowledgements.
   62         (3) A pay-for-success contract must:
   63         (a) Be limited to high-quality programs specified in the
   64  General Appropriations Act.
   65         (b) Require that funding for implementation is provided by
   66  the private sector.
   67         (c) Require an independent evaluator to determine whether
   68  the specified performance outcomes have been achieved.
   69         (d) Require a success payment, consistent with the General
   70  Appropriations Act, only if the specified performance outcome
   71  measures are achieved.
   72         (e) Prohibit the private entity from receiving or viewing
   73  any personally identifiable participant information.
   74         (4) At the direction of the Department of Management
   75  Services, an independent evaluator shall determine whether the
   76  performance outcome measures specified in the contract have been
   77  met. If the performance outcome measures have been met, the
   78  department may authorize a success payment to the private
   79  entity.
   80         (5) A private entity that receives a repayment of an
   81  investment or a success payment pursuant to a contract entered
   82  into under this section shall annually report to the Department
   83  of Management Services for the duration of the contract period.
   84         (6) At the request of the Department of Management
   85  Services, the Office of Economic and Demographic Research shall
   86  estimate the total cost savings related to the high-quality
   87  program.
   88         (7) Funding obtained for a high-quality program under this
   89  section is not a procurement item under s. 287.057, Florida
   90  Statutes.
   91         Section 2. This act shall take effect upon becoming a law.