BILL REQ. #: H-3110.3
State of Washington | 63rd Legislature | 2014 Regular Session |
Read first time 01/15/14. Referred to Committee on Early Learning & Human Services.
AN ACT Relating to public-private financing for prevention-focused social services and health care services; and creating new sections.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 (1) The legislature finds that there are
many prevention-focused social service programs and services for health
care that demonstrably result in positive impacts for individuals and
families that are cost-beneficial and that efficiently utilize
government resources. However, because government resources are
limited, the state is often unable to fund these programs or services.
(2) The legislature also finds that new, innovative financing
models, such as social impact bonds, are emerging, and these new models
allow the upfront investment of funds from nongovernment entities.
These upfront investments provide financing needed to provide
prevention-focused programs and services. These new, innovative
financing models provide an opportunity for governments to shift away
from a model of paying service providers for a defined quantity of
services to a model where providers are paid only upon the successful
achievement of agreed-upon financial and social outcomes.
(3) The legislature further finds that pay for success contracts
encourage partnerships between public, private, and philanthropic
sectors, emphasize accountability in the rendering of services, and
encourage the use of sophisticated program evaluations.
(4) The legislature intends to establish the Washington social
investment steering committee to develop and monitor the implementation
of at least one pilot program, financed by social impact bonds or other
public-private financing models, which delivers prevention-focused
services in areas such as early childhood development, child welfare,
mental health, juvenile justice, public assistance, or other identified
social or health care services.
NEW SECTION. Sec. 2 (1) The Washington social investment
steering committee is established. The steering committee shall be
composed of fourteen members, as identified in subsection (2) of this
section.
(2)(a) The president of the senate shall appoint one member from
each of the two largest caucuses of the senate.
(b) The speaker of the house of representatives shall appoint one
member from each of the two largest caucuses of the house of
representatives.
(c) The president of the senate and the speaker of the house of
representatives shall jointly appoint the following members:
(i) Two representatives from the office of financial management to
address policy and fiscal issues, respectively;
(ii) One representative from the office of the state treasurer;
(iii) One representative from the Washington state institute for
public policy;
(iv) One representative from a community development financial
institution;
(v) An expert in econometrics analysis and evaluation;
(vi) One representative from an entity that invests
philanthropically;
(vii) One representative from the University of Washington evidence
based practice institute;
(viii) One representative from a direct service provider; and
(ix) One consultant with knowledge and expertise in social impact
bonds.
(d) The cochairs of the steering committee shall be two legislative
members, one from the house of representatives and one from the senate.
The cochairs shall be from different caucuses. The cochairs shall
determine the meeting schedule for the steering committee.
(e) The steering committee may establish technical advisory
committees, as it deems necessary, and may consult with the relevant
human services or other state agencies.
(f) The first meeting of the steering committee must occur no later
than July 1, 2014.
(g) Staff support for the steering committee must be provided by
senate committee services and the office of program research.
(h) Private funding or grants must be used to provide for
facilitation and consulting services for the steering committee.
(3) No later than December 1, 2014, the steering committee shall
develop an implementation plan for at least one pilot program that uses
social impact bonds or other public-private financing mechanisms to
finance and deliver prevention-focused social or health care services.
The plan must include the following:
(a) Identification of the financing model to be used for the pilot
program, including a description of the financial mechanism for any use
of state funds and for obtaining private financing;
(b) Identification of target populations and services to be
provided in the pilot programs;
(c) Identification of specific and measurable outcomes to be
achieved in the pilot programs and establishment of baselines using
historical administrative data;
(d) Identification of the process to measure the identified
outcomes; and
(e) Legislative actions needed to implement the pilot program.
(4) No later than July 1, 2015, the office of financial management,
or a state agency designated by the office of financial management,
shall issue a request for proposal to implement the pilot programs
described in subsection (3) of this section.
(5) The pilot programs identified in subsection (3) of this section
must be implemented no later than January 1, 2016.
(6) No later than December 1, 2015, the steering committee must
provide a report to the legislature and the governor summarizing the
work of the committee.
(7) Beginning December 1, 2016, and annually throughout the
duration of the pilot programs, the steering committee must provide a
report to the legislature and the governor regarding the implementation
of the pilot programs and any recommendations for expanding the
utilization of social impact bonds or other public-private financing
mechanisms to finance and deliver prevention-focused social or health
care services.