Social Innovation Financing Program.

Existing law establishes the Social Innovation Financing Program, administered by the Board of State and Community Corrections, to award grants to 3 counties selected by the board, for the purpose of entering into a social innovation financing contract, pursuant to which private investors agree to provide financing to service providers to achieve social outcomes agreed upon in advance and the government agency that is a party to the contractual agreement agrees to pay a return on the investment to the investors if successful programmatic outcomes are achieved by the service provider. Existing law requires the board and each county receiving an award to report annually to the Governor and Legislature, as specified. Existing law repeals the program on January 1, 2022. This bill would, commencing July 1, 2022, authorize the board, upon an appropriation by the Legislature to the Social Innovation Fund created by this bill, to award a new round of grants to 5 counties selected by the board, as specified. The bill would also authorize the board to utilize no more than 2% of any appropriated funds to award microgrants to counties applying for a grant to support the development of grant proposals. The bill would require the board and the grant recipients to report annually to the Governor and the Legislature, as specified. The bill would extend the repeal date of the program to January 1, 2028.