Bill Text: IA SF2277 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act requesting the establishment of a pay for success bond interim study committee.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2018-02-14 - Introduced, referred to Rules and Administration. S.J. 315. [SF2277 Detail]
Download: Iowa-2017-SF2277-Introduced.html
Senate File 2277 - Introduced SENATE FILE BY MATHIS A BILL FOR 1 An Act requesting the establishment of a pay for success bond 2 interim study committee. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 5629XS (2) 87 hb/rh PAG LIN 1 1 Section 1. PAY FOR SUCCESS BOND INTERIM STUDY COMMITTEE. 1 2 1. The legislative council is requested to establish an 1 3 interim study committee to determine whether opportunities 1 4 exist for the use of pay for success bonds in Iowa. As used 1 5 in this section, "pay for success bond" means a financial 1 6 instrument in which private investors provide working 1 7 capital to nonprofit organizations to implement preventive 1 8 programs aimed at achieving predefined social outcomes. If an 1 9 independent evaluator determines that the predefined outcomes 1 10 have been achieved, the government repays the investors their 1 11 principal and a rate of return; otherwise, the investors lose 1 12 their capital. 1 13 2. The committee shall be comprised of the following voting 1 14 members: 1 15 a. Five members who are members of the senate, three of 1 16 whom shall be appointed by the majority leader of the senate 1 17 and two of whom shall be appointed by the minority leader of 1 18 the senate. 1 19 b. Five members who are members of the house of 1 20 representatives, three of whom shall be appointed by the 1 21 speaker of the house of representatives and two of whom 1 22 shall be appointed by the minority leader of the house of 1 23 representatives. 1 24 3. The committee shall be comprised of the following 1 25 nonvoting members: 1 26 a. One representative from the department of human 1 27 services, one representative from the Iowa finance authority, 1 28 and one representative from the state treasurer's office who 1 29 shall be appointed by the governor. 1 30 b. Two representatives from nongovernmental social service 1 31 or community organizations who shall be appointed by the 1 32 majority leader of the senate and the speaker of the house of 1 33 representatives in consultation with the minority leaders of 1 34 the senate and the house of representatives. 1 35 4. The interim committee shall study the advisability 2 1 and feasibility of using pay for success bonds in Iowa. The 2 2 committee's study shall include but not be limited to all of 2 3 the following: 2 4 a. Reviewing existing social innovation programs in this 2 5 state and in states with pay for success bond programs. 2 6 b. Identifying opportunities for the use of pay for success 2 7 bonds in this state, particularly any opportunities that would 2 8 be strong candidates for a pilot program. 2 9 c. Identifying potential challenges and risks of a pay for 2 10 success bond program. 2 11 d. Identifying statutory changes that would be necessary 2 12 for the establishment of a pay for success bond program in this 2 13 state. 2 14 e. Developing legislation to provide the necessary 2 15 statutory framework for a pay for success bond program in this 2 16 state. 2 17 5. The interim committee shall present a summary of its 2 18 review and recommendations in a report to the 2019 session of 2 19 the general assembly no later than December 15, 2018. 2 20 EXPLANATION 2 21 The inclusion of this explanation does not constitute agreement with 2 22 the explanation's substance by the members of the general assembly. 2 23 This bill requests the legislative council to establish an 2 24 interim study committee to determine whether opportunities 2 25 exist for the use of pay for success bonds in Iowa. The bill 2 26 defines "pay for success bond" to mean a financial instrument 2 27 in which private investors provide working capital to nonprofit 2 28 organizations to implement preventive programs aimed at 2 29 achieving predefined social outcomes. If an independent 2 30 evaluator determines that the predefined outcomes have been 2 31 achieved, the government repays the investors their principal 2 32 and a rate of return; otherwise, the investors lose their 2 33 capital. 2 34 The legislative interim committee is to be comprised 2 35 of legislative members who shall be voting members of the 3 1 committee, and representatives from the department of human 3 2 services, the Iowa finance authority, and the state treasurer's 3 3 office, and nongovernmental social service or community 3 4 organizations who shall be nonvoting members of the committee. 3 5 The committee is directed to study the advisability and 3 6 feasibility of using pay for success bonds in Iowa which 3 7 shall include but not be limited to reviewing existing social 3 8 innovation programs in this state and in states with pay for 3 9 success bond programs; identifying opportunities for the use 3 10 of pay for success bonds in this state; identifying potential 3 11 challenges and risks of a pay for success bond program; 3 12 identifying necessary statutory changes; and developing 3 13 legislation. 3 14 The committee is required to present a summary of its review 3 15 and recommendations in a report to the 2019 session of the 3 16 general assembly no later than December 15, 2018. LSB 5629XS (2) 87 hb/rh
