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. 20 21 Be It Enacted by the Legislature of the State of Florida: 22 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.