Florida Senate - 2022 SB 866 3-00880-22 2022866__ Page 2 of 5 CODING: Words stricken are deletions; words underlined are additions. written agreement executed between an agency and a private 30 entity in which the agency agrees, contingent upon a specified 31 service or program meeting specified performance targets and 32 outcome measures, to reimburse the private entity for up-front 33 capital it will provide to fund a service or program identified 34 in subsection (4) which addresses a critical public problem. 35 (b) “Private entity” means a private, nonprofit 36 organization, or a subsidiary or an affiliate thereof, that is 37 exempt from federal income taxation pursuant to s. 501(c)(3) of 38 the Internal Revenue Code of 1986, as amended, and that enters 39 into a pay-for-success contract with an agency. 40 (c) “Service provider” means an entity that provides 41 services on behalf of a private entity under a pay-for-success 42 contract. 43 (d) “Success payment” means a single payment or

schedule of 44 payments identified in a pay-for-success contract to be paid to 45 a private entity when specified performance targets and outcome 46 measures are met. 47 (2)(

a) Contingent upon a specific appropriation in the 48 General Appropriations Act which includes funding for a service 49 or program identified in subsection (4) and contains a proviso, 50 as defined in s. 216.011(1), authorizing a pay-for-success 51 contract and specifying the term of the contract, an agency may 52 enter into a pay-for-success contract with a private entity to 53 receive up-front capital from the entity to fund the service or 54 program.

The agency may not enter into a pay-for-success 55 contract until the state agency head determines with reasonable 56 certainty that the contract will result in quantifiable public 57 benefits and monetary savings to the state or a local government 58 Florida Senate - 2022 SB 866 3-00880-22 2022866__ Page 3 of 5 CODING: Words stricken are deletions; words underlined are additions. by reducing or avoiding costs, increasing economic productivity, 59 or improving client outcomes. 60 (

b) Notwithstanding s. 216.301 and pursuant to s. 216.351, 61 the balance of any appropriation from the General Revenue Fund 62 for a pay-for-success contract which is not disbursed but which 63 is obligated pursuant to the contract or committed to be 64 expended by June 30 of the fiscal year in which the funds are 65 appropriated may be carried forward for up to 3 years after the 66 effective date of the original appropriation. 67

(3) Each pay-for-success contract must: 68 (

a) Require a private entity to underwrite or secure up-69 front capital from private funding sources, including 70 foundations, financial institutions, businesses, or individuals. 71 (

b) Identify the specific service or program, as set forth 72 in subsection (4), to be funded under the contract. 73 (

c) Identify performance targets and outcome measures 74 against which the service’s or program’s success can be measured 75 to determine whether the service or program has achieved 76 quantifiable public benefits and monetary savings. 77 (

d) Require an independent third-party evaluator to review 78 and issue a report in the middle and at the end of the contract 79 term specifying the degree to which the service or program met 80 the identified performance targets and outcome measures. 81 (

e) Identify the calculation or algorithm to be used by the 82 agency in determining the amount and timing of success payments 83 to reimburse the private entity. The amount of each success 84 payment must correlate with the independent third-party 85 evaluator’s review under paragraph (d). 86 (

f) Contain a statement that the service provider will 87 Florida Senate - 2022 SB 866 3-00880-22 2022866__ Page 4 of 5 CODING: Words stricken are deletions; words underlined are additions. annually provide a report to the agency which includes data 88 deemed relevant by the agency. 89 (

g) Contain a statement that the amount of funds to be 90 reimbursed to the private entity is contingent upon the degree 91 to which the service or program has met the performance targets 92 and outcome measures as evaluated by the independent third-party 93 evaluator. 94 (

h) Require the agency to make the appropriate success 95 payment to the private entity within 60 days after receiving a 96 report from the independent third-party evaluator. 97 (

i) Contain a provision authorizing cancellation of the 98 contract if the agency believes the degree to which the service 99 or program has met the identified performance targets and 100 outcome measures, as reported by the third-party evaluation, is 101 insufficient to warrant continuation of the service or program. 102

(4) Services or programs eligible for funding under a pay-103 for-success contract are limited to: 104 (

a) Early childhood care and education programs, including 105 prekindergarten and school readiness programs from birth to 5 106 years of age. 107 (

b) Education, workforce preparedness, and employment 108 programs, including school-to-work programs and alternative 109 education services. 110 (

c) Public safety programs, including programs that reduce 111 recidivism and address juvenile justice. 112 (

d) Health and human services and programs, including those 113 addressing drug and alcohol addiction, mental health, chronic 114 homelessness, supportive housing, and child welfare. 115 (

e) Long-term, home-based, and community-based care 116