S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5281
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               March 1, 2023
                                ___________
 
 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".
   §  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.
   § 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.
   §  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.
   §  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.
                                                            LBD07577-01-3
 S. 5281                             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.
   § 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. 5281                             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.
   § 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.
   § 3. This act shall take effect one year after it shall have become  a
 law.