Bill Text: NH SB165 | 2016 | Regular Session | Introduced
Bill Title: Establishing the social innovation financing trust fund.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Introduced - Dead) 2016-01-06 - Inexpedient to Legislate, Motion Adopted, Voice Vote === BILL KILLED ===; 01/06/2016; Senate Journal 1 [SB165 Detail]
Download: New_Hampshire-2016-SB165-Introduced.html
SB 165 - AS INTRODUCED
2015 SESSION
15-0393
10/05
SENATE BILL 165
AN ACT establishing the social innovation financing trust fund.
COMMITTEE: Executive Departments and Administration
This bill establishes a social innovation financing trust fund for use by the department of administrative services to provide for financing of contracted government services under pay for success contracts.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
15-0393
10/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Fifteen
AN ACT establishing the social innovation financing trust fund.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Paragraph; Treasury; Trust Account; Social Innovation Financing Trust. Amend RSA 6:12-c by inserting after paragraph III the following new paragraph:
IV.(a) The state treasurer shall establish a trust to be known as the social innovation financing trust fund for the purpose of funding contracts to improve outcomes and lower costs for contracted government services, hereinafter referred to as “pay for success contracts”, subject to the requirements of subparagraph (b) and RSA 21-I:96.
(b) Deposits to the social innovation financing trust fund and any earnings on those deposits shall be irrevocable and shall be held in trust for the exclusive use of the social innovation financing trust pay for success contracts under RSA 21-I:96.
(c) The state treasurer shall have the full power to invest, reinvest, and manage the assets of the social innovation financing trust fund.
2 New Subdivision; Social Innovation Financing. Amend RSA 21-I by inserting after section 95 the following new subdivision:
21-I:96 Social Innovation Financing.
I. Notwithstanding any provision of law to the contrary, the commissioner may enter into pay for success contracts. Each contract shall include: (a) a requirement that a substantial portion of the payment be conditioned on the achievement of specific outcomes based on defined performance targets; (b) an objective process by which an independent evaluator will determine whether the performance targets have been achieved; (c) a calculation of the amount and timing of payments that would be earned by the service provider during each year of the agreement if performance targets are achieved as determined by the independent evaluator; (d) a sinking fund requirement under which the commissioner shall request an appropriation for each fiscal year that the contract is in effect, in an amount equal to the expected payments that the state would ultimately be obligated to pay in the future based upon service provided during that fiscal year, if performance targets were achieved; and (e) a determination by the commissioner that the contract will result in significant performance improvements and budgetary savings across all impacted agencies if the performance targets are achieved.
II. The commissioner may provide that payments in future years under any such contracts shall constitute a general obligation of the state for which the full faith and credit of the state shall be pledged for the benefit of the providers of the contracted government services, but the total amount of payments under such contracts secured by a pledge of the full faith and credit of the state shall not exceed, in the aggregate, $50,000,000.
III. The commissioner shall be the trustee of the social innovation financing trust fund established in RSA 6:12-c, IV, shall administer the social innovation financing trust fund, shall ensure that all funds appropriated as described in this section are deposited in the social innovation financing trust fund, and shall make payments from the trust in accordance with the terms and conditions of the contracts, without further appropriation. The commissioner shall provide an annual status report on all contracts not later than February 1 to the house and senate finance committees.
3 Effective Date. This act shall take effect 60 days after its passage.
