Florida Senate - 2020                                    SB 1182
       By Senator Montford
       3-01313-20                                            20201182__
    1                        A bill to be entitled                      
    2         An act relating to pay-for-success contracts; creating
    3         s. 287.05715, F.S.; providing definitions; authorizing
    4         a state agency to enter into a pay-for-success
    5         contract with a private entity under certain
    6         conditions, subject to an appropriation and specified
    7         language in the General Appropriations Act;
    8         authorizing the carryforward of certain unexpended
    9         appropriations; providing contract requirements;
   10         authorizing cancellation of the contract under
   11         specified circumstances; specifying services and
   12         programs eligible for funding under the contract;
   13         prohibiting a private entity from viewing or receiving
   14         certain information that is otherwise confidential and
   15         exempt from public records requirements; requiring an
   16         agency to provide an annual report containing certain
   17         data to the chairs of the legislative appropriations
   18         committees by a specified date; requiring the
   19         Department of Management Services to prescribe certain
   20         procedures by a specified date; providing an effective
   21         date.
   23  Be It Enacted by the Legislature of the State of Florida:
   25         Section 1. Section 287.05715, Florida Statutes, is created
   26  to read:
   27         287.05715Pay-for-success contracts.—
   28         (1)As used in this section, the term:
   29         (a)“Pay–for-success contract” or “contract” means a
   30  written agreement executed between an agency and a private
   31  entity in which the agency agrees, contingent upon a specified
   32  service or program meeting specified performance targets and
   33  outcome measures, to reimburse the private entity for up-front
   34  capital it will provide to fund a service or program identified
   35  in subsection (4) which addresses a critical public problem.
   36         (b)“Private entity” means a private, not-for-profit
   37  organization, or a subsidiary or an affiliate thereof, that is
   38  exempt from federal income taxation pursuant to s. 501(c)(3) of
   39  the Internal Revenue Code of 1986, as amended, and that enters
   40  into a pay-for-success contract with an agency.
   41         (c)“Service provider” means an entity that provides
   42  services on behalf of a private entity under a pay-for-success
   43  contract.
   44         (d)“Success payment” means a single payment or schedule of
   45  payments that is identified in a pay-for-success contract to be
   46  paid to a private entity when specified performance targets and
   47  outcome measures are met.
   48         (2)(a)Contingent upon a specific appropriation in the
   49  General Appropriations Act which includes funding for a service
   50  or program identified in subsection (4) and contains proviso, as
   51  defined in s. 216.011, authorizing a pay-for-success contract
   52  and specifying the term of such contract, an agency may enter
   53  into a pay-for-success contract with a private entity to receive
   54  up-front capital from the entity to fund the service or program.
   55  The agency may not enter into a pay-for-success contract until
   56  the state agency head determines with reasonable certainty that
   57  the contract will result in quantifiable public benefits and
   58  monetary savings to the state or a local government by reducing
   59  or avoiding costs, increasing economic productivity, or
   60  improving client outcomes.
   61         (b)Notwithstanding s. 216.301 and pursuant to s. 216.351,
   62  the balance of any appropriation from the General Revenue Fund
   63  for a pay-for-success contract which is not disbursed but which
   64  is obligated pursuant to contract or committed to be expended by
   65  June 30 of the fiscal year in which the funds are appropriated
   66  may be carried forward for up to 3 years after the effective
   67  date of the original appropriation.
   68         (3)Each pay-for-success contract must:
   69         (a)Require a private entity to underwrite or secure up
   70  front capital from private funding sources, including
   71  foundations, financial institutions, businesses, or individuals.
   72         (b)Identify the specific service or program, as set forth
   73  in subsection (4), to be funded under the contract.
   74         (c)Identify performance targets and outcome measures
   75  against which the service or program’s success can be measured
   76  to determine whether the service or program has achieved
   77  quantifiable public benefits and monetary savings.
   78         (d)Require an independent third-party evaluator to review
   79  and issue a report in the middle and at the end of the contract
   80  term specifying the degree to which the service or program met
   81  the identified performance targets and outcome measures.
   82         (e)Identify the calculation or algorithm to be used by the
   83  agency in determining the amount and timing of reimbursable
   84  success payments to the private entity. The amount of each
   85  success payment must correlate with the independent third-party
   86  evaluator’s review under paragraph (d).
   87         (f)Contain a statement that the service provider will
   88  annually provide a report to the agency which includes data
   89  deemed relevant by the agency.
   90         (g)Contain a statement that the amount of funds to be
   91  reimbursed to the private entity is contingent upon the degree
   92  to which the service or program has met the performance targets
   93  and outcome measures as evaluated by the independent third-party
   94  evaluator.
   95         (h)Require the agency to make the appropriate success
   96  payment to the private entity within 60 days after receiving a
   97  report from the independent third-party evaluator.
   98         (i)Contain a provision authorizing cancellation of the
   99  contract if the agency believes the degree to which the service
  100  or program has met the identified performance targets and
  101  outcome measures, as reported by the third-party evaluation, is
  102  insufficient to warrant continuation of the service or program.
  103         (4)Services or programs that are eligible for funding
  104  under a pay-for-success contract are limited to:
  105         (a)Early childhood care and education programs, including
  106  prekindergarten and school readiness programs from birth to 5
  107  years of age.
  108         (b)Education, workforce preparedness, and employment
  109  programs, including school-to-work programs and alternative
  110  education services.
  111         (c)Public safety programs, including programs that reduce
  112  recidivism and address juvenile justice.
  113         (d)Health and human services and programs, including drug
  114  and alcohol addiction, mental health, chronic homelessness,
  115  supportive housing, and child welfare.
  116         (e)Long-term, home-based, and community-based care
  117  services and programs.
  118         (5)The private entity may not view or receive any personal
  119  client information that is otherwise confidential and exempt.
  120         (6)By April 1 annually, the agency shall provide a report
  121  to the chairs of the legislative appropriations committees which
  122  contains the data provided by each service provider under
  123  paragraph (3)(f) and, if available, the evaluations from each of
  124  the independent third-party evaluators.
  125         (7)By December 1, 2020, the department shall prescribe
  126  procedures to be used by an agency when executing a pay-for
  127  success contract with a private entity, consistent with this
  128  section.
  129         Section 2. This act shall take effect July 1, 2020.