CA AB862

Establishes the Social Innovation Financing Program of 2018 to provide grant funding for pay-for-success contracts that reduce recidivism through partnerships between government, private investors, and service providers.

Board of State and Community Corrections shall select 3 counties to receive grants ranging from $300,000 to $2,000,000 each, with a maximum total of $5,000,000.

Each grant requires counties to match 100% of awarded funds with county, federal, private, or philanthropic sources, and up to 10% of grant funds may be used for administrative expenses.

Counties must establish independent evaluation processes to measure performance targets and determine payments to service providers only if specific outcomes are achieved, such as reduced rearrests or increased jail days avoided.

Program expires and is repealed effective January 1, 2025, with counties required to submit annual reports to the Board on program status and fund accounting.