Florida Senate - 2016 CS for SB 1200 By the Committee on Governmental Oversight and Accountability; and Senator Bean 585-02625-16 20161200c1 1 A bill to be entitled 2 An act relating to the Pay-for-Success Contract 3 Program; creating s. 287.05715, F.S.; defining terms; 4 authorizing a state agency to enter into a pay-for 5 success contract with a private entity under certain 6 circumstances; specifying the duties of the state 7 agency; providing contract requirements; requiring the 8 private entity to annually report to the state agency; 9 providing that a high-quality program is not a 10 procurement item; requiring the Department of 11 Management Services to prescribe certain procedures by 12 a specified date; providing an effective date. 13 14 Be It Enacted by the Legislature of the State of Florida: 15 16 Section 1. Section 287.05715, Florida Statutes, is created 17 to read: 18 287.05715 Pay-for-success contracts.— 19 (1) As used in this section, the term: 20 (a) “Pay–for-success contract” or “contract” means a 21 contract between a state agency and a private entity to fund a 22 high-quality program, as specified in the General Appropriations 23 Act, to address a critical public problem with historically poor 24 outcomes. 25 (b) “Private entity” means a private, not-for-profit 26 organization exempt from federal income taxation pursuant to s. 27 501(c)3 of the Internal Revenue Code of 1986 which enters into a 28 pay-for-success contract with a state agency and subcontracts 29 with one or more entities to provide the actual services. 30 (c) “Success payment” means the amount paid to a private 31 entity that meets the performance outcome measures established 32 in the pay-for-success contract. 33 (2) Contingent upon authorization in the General 34 Appropriations Act, a state agency may negotiate and enter into 35 a pay-for-success contract with a private entity. The contract 36 may be initiated in 1 fiscal year, may continue into subsequent 37 fiscal years, and may be paid from appropriations authorized in 38 any of those fiscal years. The state agency shall: 39 (a) Determine performance outcome measures to be included 40 in the contract. 41 (b) Determine the data to be included in an annual report 42 filed by a private entity pursuant to subsection (4). 43 (c) Select an independent, nationally recognized evaluator 44 through a request for proposals process to annually evaluate the 45 performance outcome measures specified in the contract. 46 (d) Ensure that participants in the program or their 47 guardians have given permission to share participant data and 48 signed an acknowledgment that the data may be shared with an 49 independent evaluator for research and evaluation purposes, and 50 maintain documentation of the required acknowledgements. 51 (3) A pay-for-success contract must: 52 (a) Be limited to programs specified in the General 53 Appropriations Act. 54 (b) Require the private entity to underwrite or secure 55 upfront capital from private funders, such as foundations, 56 banks, or businesses, to fund the services provided under the 57 subcontracts. 58 (c) Require an independent evaluator to determine whether 59 the specified performance outcomes have been achieved. 60 (d) Require a success payment, consistent with the General 61 Appropriations Act, only if the specified performance outcome 62 measures are achieved. 63 (e) Prohibit the private entity from receiving or viewing 64 any personally identifiable participant information. 65 (4) The private entity shall annually report to the state 66 agency for the duration of the contract period. 67 (5) Funding obtained for a high-quality program under this 68 section is not a procurement item under s. 287.057. 69 (6) By December 1, 2016, the department shall prescribe 70 procedures to be used by state agencies in connection with pay 71 for-success contracts which are consistent with this section. 72 Section 2. This act shall take effect upon becoming a law.