CA AB1837

Establishes the Social Innovation Financing Program under the Board of State and Community Corrections, operating until January 1, 2020, to fund pay-for-success contracts that use private investment to achieve social outcomes in corrections.

Authorizes grants of $500,000 to $2,000,000 to each of 3 selected counties (maximum $5,000,000 total) to enter into social innovation financing contracts where private investors provide funding and government repays based on achieving measurable outcomes.

Requires county applications to include program descriptions, performance metrics, evaluation plans, matching fund commitments (minimum 100% match), and independent evaluator processes to verify outcome achievement.

Mandates annual reporting by participating counties to the Governor and Legislature on program status and expenditures, with the Board compiling and submitting summary reports.

Up to 10 percent of grant funds may cover administrative costs, with remaining funds directed toward payments to investors upon successful achievement of performance targets such as reduced recidivism or increased jail days avoided.