Bill Text: CA SB9 | 2013-2014 | Regular Session | Introduced
Bill Title: State government: social innovation and entrepreneurship.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-02-03 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB9 Detail]
Download: California-2013-SB9-Introduced.html
BILL NUMBER: SB 9 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Price
DECEMBER 3, 2012
An act to add Chapter 1.7 (commencing with Section 12099) to Part
2 of Division 3 of Title 2 of the Government Code, relating to state
government.
LEGISLATIVE COUNSEL'S DIGEST
SB 9, as introduced, Price. State government: social innovation
and entrepreneurship.
Existing law establishes the Governor's Office of Business and
Economic Development to serve the Governor as the lead entity for
economic strategy and the marketing of California on issues relating
to business development, private sector investment, and economic
growth.
This bill would establish the Office of Social Innovation and
Entrepreneurship Development within the Office of the Governor to
establish partnerships with government agencies, private investors,
nonprofit organizations, and for-profit service providers to
facilitate the use of social impact bonds (SIBs), as defined, to
address social services needs. The bill would require the office to
develop a strategic plan for promoting SIBs, develop model provisions
for performance-based contracts, and report annually to the
Legislature on the use of SIBs.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 1.7 (commencing with Section 12099) is added to
Part 2 of Division 3 of Title 2 of the Government Code, to read:
CHAPTER 1.7. THE OFFICE OF SOCIAL INNOVATION AND
ENTREPRENEURSHIP
Article 1. Definitions
12099. For purposes of this chapter:
(a) "Director" means the Executive Director of the Office of
Social Innovation and Entrepreneurship.
(b) "Office" or "OSIE" means the Office of Social Innovation and
Entrepreneurship.
(c) "Performance-based contract" means a contractual agreement in
which a government agency agrees to pay more to a nonprofit
organization or service provider if the results of the service exceed
specified indicators of success and to pay less if results of the
service fall short of those indicators of success.
(d) "Social impact bond" means an investment arrangement using
private funding to finance a social program administered by a
nonprofit organization or for-profit service provider on behalf of a
government agency pursuant to a performance-based contract.
Article 2. General
12099.5. The Office of Social Innovation and Entrepreneurship
Development (OSIE) is hereby established in state government within
the Office of the Governor. The office shall be administered by a
director appointed by the Governor.
12099.6. The Social Impact Fund is hereby established in the
General Fund. Upon appropriation by the Legislature, funds deposited
into the account shall be used by OSIE to facilitate the use of
social impact bonds.
Article 3. Powers and Duties
12099.10. (a) OSIE shall establish partnerships with government
agencies, private investors, nonprofit organizations, and for-profit
service providers to facilitate the use of social impact bonds (SIBs)
to address social services needs.
(b) OSIE shall develop a strategic plan for promoting SIBs.
(c) OSIE shall develop model provisions for performance-based
contracts.
(d) Commencing on January 1, 2015, and annually thereafter, OSIE
shall report to the Legislature on the use of SIBs.
(e) (1) The requirement for submitting a report imposed under
subdivision (d) is inoperative on January 1, 2019, pursuant to
Section 10231.5.
(2) A report submitted pursuant to subdivision (d) shall be
submitted in compliance with Section 9795.
