S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5523

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 16, 2013
                               ___________

Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Finance

AN ACT to amend the state finance law, in relation to creating the  "New
  York state social impact bond" initiative

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Short title. This act shall be known and may  be  cited  as
the "New York state social impact bond initiative."
  S  2.  The state finance law is amended by adding a new article 5-G to
read as follows:
                                ARTICLE 5-G
              NEW YORK STATE SOCIAL IMPACT BOND INITIATIVE
SECTION 69-P. LEGISLATIVE INTENT.
        69-Q. DEFINITIONS.
        69-R. THE NEW YORK STATE SOCIAL IMPACT BOND TASK FORCE.
        69-S. THE DUTIES AND RESPONSIBILITIES OF THE TASK FORCE.
        69-T. SOCIAL IMPACT BOND ISSUANCE.
  S 69-P. LEGISLATIVE INTENT. IT IS THE INTENT  OF  THE  LEGISLATURE  TO
ESTABLISH  A  STATEWIDE  PILOT  PROGRAM  MODELED AFTER THE NEW YORK CITY
SOCIAL IMPACT BOND PROJECT TO LOWER RECIDIVISM AND IMPROVE THE LIVES  OF
SIXTEEN TO EIGHTEEN YEAR OLDS IN NEW YORK'S CORRECTIONAL FACILITIES. THE
FIRST  STATEWIDE  PROGRAM OF ITS KIND IN THE UNITED STATES, THIS PROGRAM
WILL CREATE FINANCING ARRANGEMENTS THAT AIM TO INCREASE  FUNDING  AVAIL-
ABLE FOR PREVENTATIVE SERVICES THROUGH PUBLIC-PRIVATE PARTNERSHIPS.
  S  69-Q.  DEFINITIONS.  "SOCIAL  IMPACT  BOND"  SHALL MEAN A FINANCIAL
ARRANGEMENT BETWEEN ONE OR MORE  GOVERNMENT  AGENCIES  AND  AN  EXTERNAL
ORGANIZATION THAT CAN BE EITHER A NONPROFIT OR A FOR-PROFIT ENTITY.
  S  69-R.  THE  NEW YORK STATE SOCIAL IMPACT BOND TASK FORCE. 1.  THERE
SHALL BE HEREBY ESTABLISHED A PERMANENT TASK FORCE ON THE NEW YORK STATE
SOCIAL IMPACT TASK FORCE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11138-01-3

              

S. 5523                             2

  2. THE TASK FORCE SHALL HAVE THE GOALS OF: (A) INCREASING  THE  IMPACT
OF  STATE FUNDS GRANTED OR CONTRACTED TO NONPROFITS AND FOR-PROFITS; (B)
IMPROVING EFFICIENCY IN THE GRANT AND CONTRACTING SYSTEMS AND  PROCESSES
BETWEEN  STATE GOVERNMENT AND NONPROFITS AND FOR-PROFITS FOR THE PURPOSE
OF  CREATING  A PARTNERSHIP TO LOWER RECIDIVISM AND IMPROVE THE LIVES OF
SIXTEEN TO EIGHTEEN YEAR OLDS IN NEW YORK'S CORRECTIONAL FACILITIES.
  3. THE TASK FORCE SHALL CONSIST OF AT LEAST THIRTEEN MEMBERS: (A)  ONE
OF  WHOM  SHALL  BE  APPOINTED  BY  THE GOVERNOR, WHO SHALL SERVE AS THE
CHAIR; (B) ONE OF WHOM SHALL BE APPOINTED BY THE ASSEMBLY  SPEAKER;  (C)
ONE  OF WHOM SHALL BE APPOINTED BY THE ASSEMBLY MINORITY LEADER; (D) ONE
OF WHOM SHALL BE APPOINTED BY THE SENATE MAJORITY  LEADER;  (E)  ONE  OF
WHOM  SHALL  BE APPOINTED BY THE SENATE MINORITY LEADER; (F) ONE OF WHOM
SHALL BE APPOINTED BY THE DEPARTMENT OF EDUCATION; (G) ONE OF WHOM SHALL
BE APPOINTED BY THE DEPARTMENT OF CRIMINAL JUSTICES SERVICES; (H) ONE OF
WHOM SHALL BE APPOINTED BY THE COMPTROLLER; (I) ONE  OF  WHOM  SHALL  BE
APPOINTED  BY  THE  DEPARTMENT  OF  HEALTH;  (J)  ONE  OF  WHOM SHALL BE
APPOINTED BY THE DEPARTMENT OF LABOR; (K) ONE OF WHOM SHALL BE APPOINTED
BY THE OFFICE OF MENTAL HEALTH; (L) ONE OF WHOM SHALL  BE  APPOINTED  BY
THE OFFICE OF CHILDREN AND FAMILY SERVICES; AND (M) ONE OF WHOM SHALL BE
APPOINTED  BY  THE DEPARTMENT OF FINANCIAL SERVICES.  ADDITIONAL MEMBERS
MAY BE APPOINTED FROM STATE AGENCIES AS DEEMED NECESSARY BY  THE  GOVER-
NOR.
  4.  APPOINTMENT OF ALL MEMBERS OF THE TASK FORCE SHALL BE COMPLETED NO
LATER THAN NINETY DAYS FOLLOWING THE EFFECTIVE DATE OF THIS ARTICLE.
  5. THE TASK FORCE SHALL HOLD  ITS  FIRST  MEETING  NO  MORE  THAN  ONE
HUNDRED FIFTY DAYS FOLLOWING THE EFFECTIVE DATE OF THIS ARTICLE.
  6. THE TASK FORCE SHALL MEET AT LEAST FIVE TIMES EACH CALENDAR YEAR.
  7.  THE  TASK  FORCE  MAY  EMPLOY  ADDITIONAL  STAFF  OR CONTRACT WITH
CONSULTANTS, INCLUDING INDEPENDENT RESEARCH ORGANIZATIONS.
  S 69-S. THE DUTIES AND RESPONSIBILITIES OF  THE  TASK  FORCE.  1.  THE
MEMBERS OF THE TASK FORCE SHALL DEVELOP A PUBLIC-PRIVATE PARTNERSHIP AND
IMPLEMENT  A COMPREHENSIVE, STATEWIDE SOCIAL IMPACT BOND INITIATIVE WITH
THE PURPOSE OF: INCREASING THE FUNDING AVAILABLE FOR PREVENTIVE SERVICES
TO LOWER RECIDIVISM AND DELINQUENCY TO IMPROVE THE LIVES OF  SIXTEEN  TO
EIGHTEEN YEAR OLDS, IN OR RELEASED FROM ANY TYPE OF CORRECTIONAL FACILI-
TY.
  2.  THE  PUBLIC-PRIVATE PARTNERSHIP AS SET FORTH IN THIS SECTION SHALL
INCLUDE  STATE  AGENCIES  AND  BODIES  REPRESENTING  JUVENILE   JUSTICE,
CORRECTIONS,  REENTRY,  RECIDIVISM, SOCIAL SERVICES, EDUCATION, ECONOMIC
DEVELOPMENT, AND OTHER RELEVANT ENTITIES. THE PUBLIC ENTITIES WITHIN THE
PARTNERSHIP SHALL COLLABORATE WITH  COMMUNITY  BASED  ORGANIZATIONS  AND
RELEVANT  PRIVATE  SECTOR  ENTITIES  SUCH  AS FOUNDATIONS, CORPORATIONS,
ASSOCIATIONS, AND INSTITUTES TO ACHIEVE SUCH PURPOSES.
  3. THE MEMBERS OF THE TASK FORCE SHALL ENSURE THAT THE  INITIATIVE  AS
SET FORTH IN THIS SECTION SHALL INCLUDE BUT NOT BE LIMITED TO:
  (A) CREATING A GEOGRAPHIC STATEWIDE INVENTORY OF JUVENILE SERVICES AND
OTHER  RELEVANT  CORRECTIONS AND JUSTICE SERVICES FOR THE TARGETED POPU-
LATION. THE INVENTORY SHALL:
  (I) DEFINE TARGET PROGRAMS AND POPULATION;
  (II) IDENTIFY GOVERNMENT AGENCIES  THAT  SERVICE  THE  TARGETED  POPU-
LATION;
  (III)  IDENTIFY  THE  POTENTIAL NONPROFIT AND FOR-PROFIT ORGANIZATIONS
THAT SERVICE OR MAY WISH TO SERVICE THE TARGETED POPULATION;
  (IV) IDENTIFY ALREADY EXISTING TARGETED PROGRAMS;

S. 5523                             3

  (V) PROVIDE A BASELINE ASSESSMENT OF JUVENILES IN THE STATE  IN  TERMS
OF  PERCENTAGE OF HOUSEHOLDS WITH JUVENILES; AND PROVIDE UPDATES TO SUCH
DATA ANNUALLY; AND
  (VI) ACQUIRE DATA ON THE COST OF INTERVENTION AND THE ABILITY TO QUAN-
TIFY COST SAVINGS;
  (B)  BUILDING  AND FACILITATING A PARTNERSHIP THAT INCLUDES BUT IS NOT
LIMITED TO REPRESENTATIVES OF  BUSINESS,  KINDERGARTEN  THROUGH  TWELFTH
GRADE  EDUCATION,  HEALTH CARE, MENTAL HEALTH SERVICES, SOCIAL SERVICES,
LIBRARIES, HIGHER  EDUCATION,  COMMUNITY-BASED  ORGANIZATIONS,  JUVENILE
JUSTICE AND LOCAL GOVERNMENTS;
  (C)  DEVELOPING A PLAN FOR ACHIEVING ITS GOALS WITH SPECIFIC RECOMMEN-
DATIONS;
  (D) IDENTIFYING SUCH ADDITIONAL  PUBLIC-PRIVATE  PARTNERSHIP  PROJECTS
THAT ACHIEVE THE GOALS AS SET FORTH IN THIS ARTICLE.
  4.  THE TASK FORCE SHALL FILE ANNUAL REPORTS TO THE GOVERNOR'S OFFICE,
THE SPEAKER OF THE ASSEMBLY, AND THE LEADER OF THE SENATE NO LATER  THAN
JUNE FIRST.
  5. THE REPORTS SHALL INCLUDE, BUT NOT BE LIMITED TO:
  (A) THE ACTIVITIES OF THE TASK FORCE;
  (B) THE IMPACT OF THE PARTNERSHIP ON REDUCING JUVENILE DELINQUENCY AND
RECIDIVISM;
  (C) THE IMPACT OF THE PARTNERSHIP ON THE ECONOMY OF THE STATE; AND
  (D)  ANY  RECOMMENDATIONS  FOR  LEGISLATION, POLICY CHANGES, OR AD HOC
COMMISSIONS ON FURTHER IMPROVING THE SOCIAL IMPACT BOND INITIATIVE.
  S 69-T. SOCIAL IMPACT BOND ISSUANCE.  1.  THE  COMPTROLLER  MAY  ISSUE
BONDS IN ACCORDANCE WITH THE PROVISIONS SET FORTH IN THIS ARTICLE.
  2.  THE  COMPTROLLER  SHALL SELECT AN INDEPENDENT ASSESSOR IN ORDER TO
DETERMINE IF THE OUTCOME HAS BEEN ACHIEVED AS AGREED.
  3. THE COMPTROLLER SHALL ESTABLISH CLEAR CONTRACTUAL TERMS WHEN DRAFT-
ING A SOCIAL IMPACT BOND AGREEMENT THAT BINDS ALL PARTIES  TO  PREDETER-
MINED OUTCOMES, MEASUREMENT METHODOLOGIES, TIMEFRAMES, AND PAYMENT TERMS
AS SET FORTH BY THE TASK FORCE AND INDEPENDENT ASSESSOR.
  4.  EACH  SOCIAL  IMPACT  BOND  AGREEMENT  SHALL  AT MINIMUM COVER THE
FOLLOWING:
  (A) THE RESPONSIBILITIES OF BOTH PARTIES, INCLUDING DETAILED  EXPECTA-
TIONS  ESTABLISHING  A  WORKING  RELATIONSHIP BETWEEN THE GOVERNMENT AND
EXTERNAL ORGANIZATION;
  (B) THE TIMEFRAME FOR THE AGREEMENT AND THE POPULATION TO BE SERVED;
  (C) THE OUTCOMES AND HOW THEY WILL BE MEASURED;
  (D) THE OUTCOME PAYMENTS, HOW THEY WILL BE CALCULATED AND HOW AND WHEN
THEY WILL BE DISBURSED;
  (E) CIRCUMSTANCES UNDER WHICH EITHER PARTY CAN TERMINATE THE AGREEMENT
AND MECHANISMS FOR AN ORDERLY DISSOLUTION OF THE SOCIAL IMPACT BOND;
  (F) METHODS FOR RESOLVING DISPUTES BETWEEN THE PARTIES; AND
  (G) THE EXTERNAL ORGANIZATION SHALL HAVE THE RESPONSIBILITY FOR STRUC-
TURING CONTRACTS WITH INVESTORS AND SERVICE PROVIDERS.
  S 3. This act shall take effect one year after it shall have become  a
law.