Social impact partnerships: pilot program.

Existing law establishes the Office of Planning and Research in the Governor's office and sets forth its powers and duties as the comprehensive state planning agency, including, among other things, to evaluate plans and programs of departments and agencies of state government. This bill would state findings and declarations of the Legislature regarding the social problems currently facing the state and the function of social innovation financing, pay-for-success contracts, and social impact partnerships. The bill would authorize the Governor, or his or her designee, to solicit proposals for social impact partnerships using pay-for-success contracting and to enter into social impact partnerships, as defined, to address policies or programs not currently funded by the state, to address a particular component of a state program in order to improve outcomes or lower state costs, to reduce recidivism, to reduce child abuse and neglect, or to assist at-risk and foster children, provided that the social impact partnership does not cause the displacement of any state employee and the contractual agreement contains specified provisions. The bill would require a pay-for-success contract for a social impact partnership to be submitted to the Legislature as part of the Governor's proposed budget, and any funding necessary for that fiscal year to be included in the Governor's proposed budget for the state agency that would administer or oversee the contract. The bill would require the Treasurer to separately account for moneys approved by the Legislature and the Governor to use for payment for these contracts, upon appropriation by the Legislature. This bill would repeal these provisions on January 1, 2020.