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.
   14  Be It Enacted by the Legislature of the State of Florida:
   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.