Palm Harbor lawmaker seeks 'pay for success' program (Tampa Bay Business Journal)

Two Republican lawmakers have filed bills that would create a program — dubbed "pay for success" — that would involve private investment money being used to pay for government services.

Rep. Chris Sprowls, R-Palm Harbor, filed a House version (HB 1049) this week, and Sen. Aaron Bean, R-Fernandina Beach, has filed a similar Senate bill (SB 1200).

The measures will be considered during the legislative session that starts Jan. 12. Under the proposals, the state could enter into contracts with nonprofit organizations to provide targeted services. The nonprofits would get private funding to pay for the services.

Under the contracts, the state would ultimately make payments to the nonprofits based on whether they meet "performance outcome measures," according to the bills.

A news release from Sprowls' office said private investors would receive a return on their investments only if there are "proven results" and that other states are developing similar programs.

"This legislation uses private funding to solve social issues and allows for service providers to test alternatives to the status quo,'' Sprowls said in the release. "On top of that, it exposes taxpayers to zero risk while holding those private entities accountable for outcomes."