Bill Text: CT SB00854 | 2013 | General Assembly | Comm Sub

Connecticut Senate Bill 854 (Prior Session Legislation)

Bill Title: An Act Concerning Social Innovation Investment.

Spectrum: Committee Bill

Status: (Introduced - Dead) 2013-05-09 - File Number 783 [SB00854 Detail]

Download: Connecticut-2013-SB00854-Comm_Sub.html

General Assembly		*Substitute Bill No. 854*
*January Session, 2013*		_____SB00854APP___042313____

AN ACT CONCERNING SOCIAL INNOVATION INVESTMENT.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 4-68aa of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2014):

(a) As used in this section:

(1) "Savings" means a reduction in state expenditures, as such expenditures are defined in an outcome-based performance contract;

[(1)] (2) "Secretary" means the Secretary of the Office of Policy and Management, or the secretary's designee;

[(2)] (3) "Social innovation investment enterprise" means an entity created to coordinate the delivery of preventive social programs by nonprofit service providers, which has the capability of creating a social investment vehicle, entering into outcome-based performance contracts and contracting with service providers;

[(3)] (4) "Social investment vehicle" means an investment product established by a social innovation investment enterprise to raise private investment capital; and

[(4)] (5) "Outcome-based performance contract" means a contract entered into between the secretary and a social innovation investment enterprise that establishes outcome-based performance standards for preventive social programs delivered by nonprofit service providers and provides that investors in any social investment vehicle shall receive a return of their investment and earnings thereon only if outcome-based performance standards are met by the social innovation investment enterprise.

(b) The secretary may, subject to the legislative review process set forth in subsection (d) of this section, enter into an outcome-based performance contract with a social innovation investment enterprise [for the purpose of accepting a United States Department of Justice fiscal year 2012 Second Chance Act Adult Offender Reentry Program Demonstration Category 2 Implementation grant. The outcome-based performance contract between the secretary and a social innovation investment enterprise may provide for payments from the social innovation account, established pursuant to subsection (d) of this section, to the social innovation investment enterprise or to investors or to both] based on a written proposal deemed sufficient by the secretary that demonstrates savings will be generated by the social innovation investment enterprise through the accelerated delivery of preventive social programs within the state.

(c) Any outcome-based performance contract entered into by the secretary, pursuant to the provisions of this section, shall include, but not be limited to, requirements that: (1) Payment be conditioned on the achievement of specific, quantifiable outcomes based on defined performance benchmarks; (2) returns on investment be calculated on an ascending scale based upon achievement of specific, quantifiable performance benchmarks; (3) nonprofit service providers which deliver services as part of such contract receive a percentage of any return on investment; (4) an objective process be established by which an independent evaluator shall determine whether the performance benchmarks have been achieved; (5) a calculation be completed of the amount and timing of payments that would be earned by nonprofit service providers during each year of the contract if performance benchmarks are achieved as determined by an independent evaluator; and (6) a fiscal analysis be completed by the secretary as to projected savings in specific governmental service areas related to achievement of specific, quantifiable performance benchmarks.

(d) Prior to entering into an outcome-based performance contract with a social innovation investment enterprise, the secretary shall request approval of such contract by the joint standing committees of the General Assembly having cognizance of matters relating to human services and appropriations and the budgets of state agencies. Each joint standing committee shall have thirty days from the date such request is received to convene a meeting to vote to approve or disapprove such contract. If such contract proposal is altered, amended or otherwise changed, the secretary shall resubmit such request, and each joint standing committee shall have thirty days from the date of such resubmittal to convene a meeting to vote to approve or disapprove such action. If a joint standing committee does not act on the initial request or the resubmittal of a request within the specified time frame the request shall be deemed to be approved by the committee. If such joint standing committees do not concur, the joint standing committee chairpersons shall appoint a committee of conference which shall be composed of three members from each joint standing committee. At least one member appointed from each joint standing committee shall be a member of the minority party. The report of the committee of conference shall be made to each joint standing committee, which shall vote to accept or reject the report. The report of the committee of conference may not be amended. If a joint standing committee rejects the report of the committee of conference, that joint standing committee shall notify the secretary of the rejection and the contract proposal shall be deemed approved. If the joint standing committees accept the report, the committee having cognizance of matters relating to appropriations and the budgets of state agencies shall advise the secretary of the approval, denial or modifications, if any, of the contract proposal. If the joint standing committees do not so advise the secretary during the thirty-day period, the contract proposal shall be deemed rejected.

[(c)] (e) The secretary shall comply with the provisions of section 4e-16 relating to privatization contracts when entering into an outcome-based performance contract with a social innovation investment enterprise pursuant to this section.

[(d)] (f) There is established an account to be known as the "social innovation account" which shall be a separate, nonlapsing account within the General Fund. The account shall contain any moneys required by law to be deposited in the account. Any interest accruing to the account shall be credited to the account. Moneys may be transferred to the account from the General Fund. [Moneys in the account shall be expended by the Secretary of the Office of Policy and Management for the purposes of facilitating the reentry of moderate and high-risk offenders into the community.] Moneys in said account may be used to provide payments to the social innovation enterprise, investors or both in accordance with the terms of an outcome-based performance contract. The secretary may apply for and accept gifts, grants or donations from public or private sources to enable the account to be a source of payments to investors purchasing interests in a social investment vehicle.


This act shall take effect as follows and shall amend the following sections:
Section 1	July 1, 2014	4-68aa

Statement of Legislative Commissioners:

In section (1)(c)(2) "for the social innovation investment enterprise" was deleted for consistency with other provisions of the section; in section 1(f), new language was redrafted for consistency with other provisions of the subsection.