Bill Text: IA SF98 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act requesting the establishment of a pay for success bond interim study committee.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-01-29 - Subcommittee: Nunn, Johnson, and Mathis. S.J. 187. [SF98 Detail]
Download: Iowa-2019-SF98-Introduced.html
Senate
File
98
-
Introduced
SENATE
FILE
98
BY
MATHIS
A
BILL
FOR
An
Act
requesting
the
establishment
of
a
pay
for
success
bond
1
interim
study
committee.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
PAY
FOR
SUCCESS
BOND
INTERIM
STUDY
COMMITTEE.
1
1.
The
legislative
council
is
requested
to
establish
an
2
interim
study
committee
to
determine
whether
opportunities
3
exist
for
the
use
of
pay
for
success
bonds
in
Iowa.
As
used
4
in
this
section,
“pay
for
success
bond”
means
a
financial
5
instrument
in
which
private
investors
provide
working
6
capital
to
nonprofit
organizations
to
implement
preventive
7
programs
aimed
at
achieving
predefined
social
outcomes.
If
an
8
independent
evaluator
determines
that
the
predefined
outcomes
9
have
been
achieved,
the
government
repays
the
investors
their
10
principal
and
a
rate
of
return;
otherwise,
the
investors
lose
11
their
capital.
12
2.
The
committee
shall
be
comprised
of
the
following
voting
13
members:
14
a.
Five
members
who
are
members
of
the
senate,
three
of
15
whom
shall
be
appointed
by
the
majority
leader
of
the
senate
16
and
two
of
whom
shall
be
appointed
by
the
minority
leader
of
17
the
senate.
18
b.
Five
members
who
are
members
of
the
house
of
19
representatives,
three
of
whom
shall
be
appointed
by
the
20
speaker
of
the
house
of
representatives
and
two
of
whom
21
shall
be
appointed
by
the
minority
leader
of
the
house
of
22
representatives.
23
3.
The
committee
shall
be
comprised
of
the
following
24
nonvoting
members:
25
a.
One
representative
from
the
department
of
human
26
services,
one
representative
from
the
Iowa
finance
authority,
27
and
one
representative
from
the
state
treasurer’s
office
who
28
shall
be
appointed
by
the
governor.
29
b.
Two
representatives
from
nongovernmental
social
service
30
or
community
organizations
who
shall
be
appointed
by
the
31
majority
leader
of
the
senate
and
the
speaker
of
the
house
of
32
representatives
in
consultation
with
the
minority
leaders
of
33
the
senate
and
the
house
of
representatives.
34
4.
The
interim
committee
shall
study
the
advisability
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and
feasibility
of
using
pay
for
success
bonds
in
Iowa.
The
1
committee’s
study
shall
include
but
not
be
limited
to
all
of
2
the
following:
3
a.
Reviewing
existing
social
innovation
programs
in
this
4
state
and
in
states
with
pay
for
success
bond
programs.
5
b.
Identifying
opportunities
for
the
use
of
pay
for
success
6
bonds
in
this
state,
particularly
any
opportunities
that
would
7
be
strong
candidates
for
a
pilot
program.
8
c.
Identifying
potential
challenges
and
risks
of
a
pay
for
9
success
bond
program.
10
d.
Identifying
statutory
changes
that
would
be
necessary
11
for
the
establishment
of
a
pay
for
success
bond
program
in
this
12
state.
13
e.
Developing
legislation
to
provide
the
necessary
14
statutory
framework
for
a
pay
for
success
bond
program
in
this
15
state.
16
5.
The
interim
committee
shall
present
a
summary
of
its
17
review
and
recommendations
in
a
report
to
the
2020
session
of
18
the
general
assembly
no
later
than
December
15,
2019.
19
EXPLANATION
20
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
21
the
explanation’s
substance
by
the
members
of
the
general
assembly.
22
This
bill
requests
the
legislative
council
to
establish
an
23
interim
study
committee
to
determine
whether
opportunities
24
exist
for
the
use
of
pay
for
success
bonds
in
Iowa.
The
bill
25
defines
“pay
for
success
bond”
to
mean
a
financial
instrument
26
in
which
private
investors
provide
working
capital
to
nonprofit
27
organizations
to
implement
preventive
programs
aimed
at
28
achieving
predefined
social
outcomes.
If
an
independent
29
evaluator
determines
that
the
predefined
outcomes
have
been
30
achieved,
the
government
repays
the
investors
their
principal
31
and
a
rate
of
return;
otherwise,
the
investors
lose
their
32
capital.
33
The
legislative
interim
committee
is
to
be
comprised
34
of
legislative
members
who
shall
be
voting
members
of
the
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committee,
and
representatives
from
the
department
of
human
1
services,
the
Iowa
finance
authority,
and
the
state
treasurer’s
2
office,
and
nongovernmental
social
service
or
community
3
organizations
who
shall
be
nonvoting
members
of
the
committee.
4
The
committee
is
directed
to
study
the
advisability
and
5
feasibility
of
using
pay
for
success
bonds
in
Iowa
which
6
shall
include
but
not
be
limited
to
reviewing
existing
social
7
innovation
programs
in
this
state
and
in
states
with
pay
for
8
success
bond
programs;
identifying
opportunities
for
the
use
9
of
pay
for
success
bonds
in
this
state;
identifying
potential
10
challenges
and
risks
of
a
pay
for
success
bond
program;
11
identifying
necessary
statutory
changes;
and
developing
12
legislation.
13
The
committee
is
required
to
present
a
summary
of
its
review
14
and
recommendations
in
a
report
to
the
2020
session
of
the
15
general
assembly
no
later
than
December
15,
2019.
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