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[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 963 Introduced in Senate (IS)]

<DOC>

115th CONGRESS
  1st Session
                                 S. 963

 To encourage and support partnerships between the public and private 
    sectors to improve our Nation's social programs, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             April 27, 2017

   Mr. Young (for himself, Mr. Bennet, Ms. Collins, and Mr. Booker) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL

 
 To encourage and support partnerships between the public and private 
    sectors to improve our Nation's social programs, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Social Impact Partnerships to Pay 
for Results Act''.

SEC. 2. SOCIAL IMPACT PARTNERSHIPS TO PAY FOR RESULTS.

    Title XX of the Social Security Act (42 U.S.C. 1397 et seq.) is 
amended--
            (1) in the title heading, by striking ``TO STATES'' and 
        inserting ``AND PROGRAMS FOR''; and
            (2) by adding at the end the following new subtitle:

                ``Subtitle C--Social Impact Partnerships

``SEC. 2051. PURPOSES.

    ``The purposes of this subtitle are the following:
            ``(1) To improve the lives of families and individuals in 
        need in the United States by funding social programs that 
        achieve real results.
            ``(2) To redirect funds away from programs that, based on 
        objective data, are ineffective, and into programs that achieve 
        demonstrable, measurable results.
            ``(3) To ensure Federal funds are used effectively on 
        social services to produce positive outcomes for both service 
        recipients and taxpayers.
            ``(4) To establish the use of social impact partnerships to 
        address some of our Nation's most pressing problems.
            ``(5) To facilitate the creation of public-private 
        partnerships that bundle philanthropic or other private 
        resources with existing public spending to scale up effective 
        social interventions already being implemented by private 
        organizations, nonprofits, charitable organizations, and State 
        and local governments across the country.
            ``(6) To bring pay-for-performance to the social sector, 
        allowing the United States to improve the impact and 
        effectiveness of vital social services programs while 
        redirecting inefficient or duplicative spending.
            ``(7) To incorporate outcomes measurement and randomized 
        controlled trials or other rigorous methodologies for assessing 
        program impact.

``SEC. 2052. SOCIAL IMPACT PARTNERSHIP APPLICATION.

    ``(a) Notice.--Not later than 1 year after the date of the 
enactment of this subtitle, the Secretary, in consultation with the 
Federal Interagency Council on Social Impact Partnerships, shall 
publish in the Federal Register a request for proposals from States or 
local governments for social impact partnership projects in accordance 
with this section.
    ``(b) Required Outcomes for Social Impact Partnership Project.--To 
qualify as a social impact partnership project under this subtitle, a 
project must produce one or more measurable, clearly defined outcomes 
that result in social benefit and Federal savings through any of the 
following:
            ``(1) Increasing work and earnings by individuals in the 
        United States who are unemployed for more than 6 consecutive 
        months.
            ``(2) Increasing employment and earnings of individuals who 
        have attained 16 years of age but not 25 years of age.
            ``(3) Increasing employment among individuals receiving 
        Federal disability benefits.
            ``(4) Reducing the dependence of low-income families on 
        Federal means-tested benefits.
            ``(5) Improving rates of high school graduation.
            ``(6) Reducing teen and unplanned pregnancies.
            ``(7) Improving birth outcomes and early childhood health 
        and development among low-income families and individuals.
            ``(8) Reducing rates of asthma, diabetes, or other 
        preventable diseases among low-income families and individuals 
        to reduce the utilization of emergency and other high-cost 
        care.
            ``(9) Increasing the proportion of children living in two-
        parent families.
            ``(10) Reducing incidences and adverse consequences of 
        child abuse and neglect.
            ``(11) Reducing the number of youth in foster care by 
        increasing adoptions, permanent guardianship arrangements, 
        reunifications, or placements with a fit and willing relative, 
        or by avoiding placing children in foster care by ensuring they 
        can be cared for safely in their own homes.
            ``(12) Reducing the number of children and youth in foster 
        care residing in group homes, child care institutions, agency-
        operated foster homes, or other non-family foster homes, unless 
        it is determined that it is in the interest of the child's 
        long-term health, safety, or psychological well-being to not be 
        placed in a family foster home.
            ``(13) Reducing the number of children returning to foster 
        care.
            ``(14) Reducing recidivism among juvenile offenders, 
        individuals released from prison, or other high-risk 
        populations.
            ``(15) Reducing the rate of homelessness among our most 
        vulnerable populations.
            ``(16) Improving the health and well-being of those with 
        mental, emotional, and behavioral health needs.
            ``(17) Improving the educational outcomes of special-needs 
        or low-income children.
            ``(18) Improving the employment and well-being of returning 
        United States military members.
            ``(19) Increasing the financial stability of low-income 
        families.
            ``(20) Increasing the independence and employability of 
        individuals who are physically or mentally disabled.
            ``(21) Other measurable outcomes defined by the State or 
        local government that result in positive social outcomes and 
        Federal savings.
    ``(c) Application Required.--The notice described in subsection (a) 
shall require a State or local government to submit an application for 
the social impact partnership project that addresses the following:
            ``(1) The outcome goals of the project.
            ``(2) A description of each intervention in the project and 
        anticipated outcomes of the intervention.
            ``(3) Rigorous evidence demonstrating that the intervention 
        can be expected to produce the desired outcomes.
            ``(4) The target population that will be served by the 
        project.
            ``(5) The expected social benefits to participants who 
        receive the intervention and others who may be impacted.
            ``(6) Projected Federal, State, and local government costs 
        and other costs to conduct the project.
            ``(7) Projected Federal, State, and local government 
        savings and other savings, including an estimate of the savings 
        to the Federal Government, on a program-by-program basis and in 
        the aggregate, if the project is implemented and the outcomes 
        are achieved as a result of the intervention.
            ``(8) If savings resulting from the successful completion 
        of the project are estimated to accrue to the State or local 
        government, the likelihood of the State or local government to 
        realize those savings.
            ``(9) A plan for delivering the intervention through a 
        social impact partnership model.
            ``(10) A description of the expertise of each service 
        provider that will administer the intervention, including a 
        summary of the experience of the service provider in delivering 
        the proposed intervention or a similar intervention, or 
        demonstrating that the service provider has the expertise 
        necessary to deliver the proposed intervention.
            ``(11) An explanation of the experience of the State or 
        local government, the intermediary, or the service provider in 
        raising private and philanthropic capital to fund social 
        service investments.
            ``(12) The detailed roles and responsibilities of each 
        entity involved in the project, including any State or local 
        government entity, intermediary, service provider, independent 
        evaluator, investor, or other stakeholder.
            ``(13) A summary of the experience of the service provider 
        in delivering the proposed intervention or a similar 
        intervention, or a summary demonstrating the service provider 
        has the expertise necessary to deliver the proposed 
        intervention.
            ``(14) A summary of the unmet need in the area where the 
        intervention will be delivered or among the target population 
        who will receive the intervention.
            ``(15) The proposed payment terms, the methodology used to 
        calculate outcome payments, the payment schedule, and 
        performance thresholds.
            ``(16) The project budget.
            ``(17) The project timeline.
            ``(18) The criteria used to determine the eligibility of an 
        individual for the project, including how selected populations 
        will be identified, how they will be referred to the project, 
        and how they will be enrolled in the project.
            ``(19) The evaluation design.
            ``(20) The metrics that will be used in the evaluation to 
        determine whether the outcomes have been achieved as a result 
        of the intervention and how the metrics will be measured.
            ``(21) An explanation of how the metrics used in the 
        evaluation to determine whether the outcomes achieved as a 
        result of the intervention are independent, objective 
        indicators of impact and are not subject to manipulation by the 
        service provider, intermediary, or investor.
            ``(22) A summary explaining the independence of the 
        evaluator from the other entities involved in the project and 
        the evaluator's experience in conducting rigorous evaluations 
        of program effectiveness including, where available, well-
        implemented randomized controlled trials on the intervention or 
        similar interventions.
            ``(23) Any potential payment disputes related to the 
        outcomes of the evaluation.
            ``(24) The capacity of the service provider to deliver the 
        intervention to the number of participants the State or local 
        government proposes to serve in the project.
            ``(25) A description of whether and how the State or local 
        government and service providers plan to sustain the 
        intervention, if it is timely and appropriate to do so, to 
        ensure that successful interventions continue to operate after 
        the period of the social impact partnership.
    ``(d) Project Intermediary Information Required.--The application 
described in subsection (c) shall also contain the following 
information about any intermediary for the social impact partnership 
project (whether an intermediary is a service provider or other 
entity):
            ``(1) Experience and capacity for providing or facilitating 
        the provision of the type of intervention proposed.
            ``(2) The mission and goals.
            ``(3) Information on whether the intermediary is already 
        working with service providers that provide this intervention 
        or an explanation of the capacity of the intermediary to begin 
        working with service providers to provide the intervention.
            ``(4) Experience working in a collaborative environment 
        across government and nongovernmental entities.
            ``(5) Previous experience collaborating with public or 
        private entities to implement evidence-based programs.
            ``(6) Ability to raise or provide funding to cover 
        operating costs (if applicable to the project).
            ``(7) Capacity and infrastructure to track outcomes and 
        measure results, including--
                    ``(A) capacity to track and analyze program 
                performance and assess program impact; and
                    ``(B) experience with performance-based awards or 
                performance-based contracting and achieving project 
                milestones and targets.
            ``(8) Role in delivering the intervention.
            ``(9) How the intermediary would monitor program success, 
        including a description of the interim benchmarks and outcome 
        measures.
    ``(e) Feasibility Studies Funded Through Other Sources.--The notice 
described in subsection (a) shall permit a State or local government to 
submit an application for social impact partnership funding that 
contains information from a feasibility study developed for purposes 
other than applying for funding under this subtitle.

``SEC. 2053. AWARDING SOCIAL IMPACT PARTNERSHIP AGREEMENTS.

    ``(a) Timeline in Awarding Agreement.--Not later than 6 months 
after receiving an application in accordance with section 2052, the 
Secretary, in consultation with the Federal Interagency Council on 
Social Impact Partnerships, shall determine whether to enter into an 
agreement for a social impact partnership project with a State or local 
government.
    ``(b) Considerations in Awarding Agreement.--In determining whether 
to enter into an agreement for a social impact partnership project (the 
application for which was submitted under section 2052) the Secretary, 
in consultation with the Federal Interagency Council on Social Impact 
Partnerships (established by section 2056) and the head of any Federal 
agency administering a similar intervention or serving a population 
similar to that served by the project, shall consider each of the 
following:
            ``(1) The recommendations made by the Commission on Social 
        Impact Partnerships.
            ``(2) The value to the Federal Government of the outcomes 
        expected to be achieved if the outcomes specified in the 
        agreement are achieved as a result of the intervention.
            ``(3) The likelihood, based on evidence provided in the 
        application and other evidence, that the State or local 
        government in collaboration with the intermediary and the 
        service providers will achieve the outcomes.
            ``(4) The savings to the Federal Government if the outcomes 
        specified in the agreement are achieved as a result of the 
        intervention.
            ``(5) The savings to the State and local governments if the 
        outcomes specified in the agreement are achieved as a result of 
        the intervention.
            ``(6) The expected quality of the evaluation that would be 
        conducted with respect to the agreement.
            ``(7) The capacity and commitment of the State or local 
        government to sustain the intervention, if appropriate and 
        timely and if the intervention is successful, beyond the period 
        of the social impact partnership.
    ``(c) Agreement Authority.--
            ``(1) Agreement requirements.--The Secretary, in 
        consultation with the Federal Interagency Council on Social 
        Impact Partnerships and the head of any Federal agency 
        administering a similar intervention or serving a population 
        similar to that served by the project, may enter into an 
        agreement for a social impact partnership project with a State 
        or local government if the Secretary, in consultation with the 
        Federal Interagency Council on Social Impact Partnerships, 
        determines that each of the following requirements are met:
                    ``(A) The State or local government agrees to 
                achieve one or more outcomes as a result of the 
                intervention, as specified in the agreement and 
                validated by independent evaluation, in order to 
                receive payment.
                    ``(B) The Federal payment to the State or local 
                government for each specified outcome achieved as a 
                result of the intervention is less than or equal to the 
                value of the outcome to the Federal Government over a 
                period not to exceed 10 years, as determined by the 
                Secretary, in consultation with the State or local 
                government.
                    ``(C) The duration of the project does not exceed 
                10 years.
                    ``(D) The State or local government has 
                demonstrated, through the application submitted under 
                section 2052, that, based on prior rigorous 
                experimental evaluations or rigorous quasi-experimental 
                studies, the intervention can be expected to achieve 
                each outcome specified in the agreement.
                    ``(E) The State, local government, intermediary, or 
                service provider has experience raising private or 
                philanthropic capital to fund social service 
                investments (if applicable to the project).
                    ``(F) The State or local government has shown that 
                each service provider has experience delivering the 
                intervention, a similar intervention, or has otherwise 
                demonstrated the expertise necessary to deliver the 
                intervention.
            ``(2) Payment.--The Secretary shall pay the State or local 
        government only if the independent evaluator described in 
        section 2055 determines that the social impact partnership 
        project has met the requirements specified in the agreement and 
        achieved an outcome as a result of the intervention, as 
        specified in the agreement and validated by independent 
        evaluation.
            ``(3) Limitation.--The Secretary may not enter into a 
        contract for a social impact partnership project under 
        paragraph (1) after the date that is 10 years after the date of 
        enactment of the Social Impact Partnerships to Pay for Results 
        Act.
    ``(d) Notice of Agreement Award.--Not later than 30 days after 
entering into an agreement under this section, the Secretary shall 
publish a notice in the Federal Register that includes, with regard to 
the agreement, the following:
            ``(1) The outcome goals of the social impact partnership 
        project.
            ``(2) A description of each intervention in the project.
            ``(3) The target population that will be served by the 
        project.
            ``(4) The expected social benefits to participants who 
        receive the intervention and others who may be impacted.
            ``(5) The detailed roles, responsibilities, and purposes of 
        each Federal, State, or local government entity, intermediary, 
        service provider, independent evaluator, investor, or other 
        stakeholder.
            ``(6) The payment terms, the methodology used to calculate 
        outcome payments, the payment schedule, and performance 
        thresholds.
            ``(7) The project budget.
            ``(8) The project timeline.
            ``(9) The project eligibility criteria.
            ``(10) The evaluation design.
            ``(11) The metrics that will be used in the evaluation to 
        determine whether the outcomes have been achieved as a result 
        of each intervention and how these metrics will be measured.
            ``(12) The estimate of the savings to the Federal, State, 
        and local government, on a program-by-program basis and in the 
        aggregate, if the agreement is entered into and implemented and 
        the outcomes are achieved as a result of each intervention.
    ``(e) Authority To Transfer Administration of Agreement.--The 
Secretary may transfer to the head of another Federal agency the 
authority to administer (including making payments under) an agreement 
entered into under this section, and any funds necessary to do so.
    ``(f) Requirement on Funding Used To Benefit Children.--Not less 
than 50 percent of all Federal payments made to carry out agreements 
under this section shall be used for initiatives that directly benefit 
children.

``SEC. 2054. FEASIBILITY STUDY FUNDING.

    ``(a) Requests for Funding for Feasibility Studies.--The Secretary 
shall reserve a portion of the amounts appropriated to carry out this 
subtitle to assist States or local governments in developing 
feasibility studies to apply for social impact partnership funding 
under section 2052. To be eligible to receive funding to assist with 
completing a feasibility study, a State or local government shall 
submit an application for feasibility study funding addressing the 
following:
            ``(1) A description of the outcome goals of the social 
        impact partnership project.
            ``(2) A description of the intervention, including 
        anticipated program design, target population, an estimate 
        regarding the number of individuals to be served, and setting 
        for the intervention.
            ``(3) Evidence to support the likelihood that the 
        intervention will produce the desired outcomes.
            ``(4) A description of the potential metrics to be used.
            ``(5) The expected social benefits to participants who 
        receive the intervention and others who may be impacted.
            ``(6) Estimated costs to conduct the project.
            ``(7) Estimates of Federal, State, and local government 
        savings and other savings if the project is implemented and the 
        outcomes are achieved as a result of each intervention.
            ``(8) An estimated timeline for implementation and 
        completion of the project, which shall not exceed 10 years.
            ``(9) With respect to a project for which the State or 
        local government selects an intermediary to operate the 
        project, any partnerships needed to successfully execute the 
        project and the ability of the intermediary to foster the 
        partnerships.
            ``(10) The expected resources needed to complete the 
        feasibility study for the State or local government to apply 
        for social impact partnership funding under section 2052.
    ``(b) Federal Selection of Applications for Feasibility Study.--Not 
later than 6 months after receiving an application for feasibility 
study funding under subsection (a), the Secretary, in consultation with 
the Federal Interagency Council on Social Impact Partnerships and the 
head of any Federal agency administering a similar intervention or 
serving a population similar to that served by the project, shall 
select State or local government feasibility study proposals for 
funding based on the following:
            ``(1) The recommendations made by the Commission on Social 
        Impact Partnerships.
            ``(2) The likelihood that the proposal will achieve the 
        desired outcomes.
            ``(3) The value of the outcomes expected to be achieved as 
        a result of each intervention.
            ``(4) The potential savings to the Federal Government if 
        the social impact partnership project is successful.
            ``(5) The potential savings to the State and local 
        governments if the project is successful.
    ``(c) Public Disclosure.--Not later than 30 days after selecting a 
State or local government for feasibility study funding under this 
section, the Secretary shall cause to be published on the website of 
the Federal Interagency Council on Social Impact Partnerships 
information explaining why a State or local government was granted 
feasibility study funding.
    ``(d) Funding Restriction.--
            ``(1) Feasibility study restriction.--The Secretary may not 
        provide feasibility study funding under this section for more 
        than 50 percent of the estimated total cost of the feasibility 
        study reported in the State or local government application 
        submitted under subsection (a).
            ``(2) Aggregate restriction.--Of the total amounts 
        appropriated to carry out this subtitle, the Secretary may not 
        use more than $10,000,000 to provide feasibility study funding 
        to States or local governments under this section.
            ``(3) No guarantee of funding.--The Secretary shall have 
        the option to award no funding under this section.
    ``(e) Submission of Feasibility Study Required.--Not later than 9 
months after the receipt of feasibility study funding under this 
section, a State or local government receiving the funding shall 
complete the feasibility study and submit the study to the Federal 
Interagency Council on Social Impact Partnerships.
    ``(f) Delegation of Authority.--The Secretary may transfer to the 
head of another Federal agency the authorities provided in this section 
and any funds necessary to exercise the authorities.

``SEC. 2055. EVALUATIONS.

    ``(a) Authority To Enter Into Agreements.--For each State or local 
government awarded a social impact partnership project approved by the 
Secretary under this subtitle, the head of the relevant agency, as 
recommended by the Federal Interagency Council on Social Impact 
Partnerships and determined by the Secretary, shall enter into an 
agreement with the State or local government to pay for all or part of 
the independent evaluation to determine whether the State or local 
government project has achieved a specific outcome as a result of the 
intervention in order for the State or local government to receive 
outcome payments under this subtitle.
    ``(b) Evaluator Qualifications.--The head of the relevant agency 
may not enter into an agreement with a State or local government unless 
the head determines that the evaluator is independent of the other 
parties to the agreement and has demonstrated substantial experience in 
conducting rigorous evaluations of program effectiveness including, 
where available and appropriate, well-implemented randomized controlled 
trials on the intervention or similar interventions.
    ``(c) Methodologies To Be Used.--The evaluation used to determine 
whether a State or local government will receive outcome payments under 
this subtitle shall use experimental designs using random assignment or 
other reliable, evidence-based research methodologies, as certified by 
the Federal Interagency Council on Social Impact Partnerships, that 
allow for the strongest possible causal inferences when random 
assignment is not feasible.
    ``(d) Progress Report.--
            ``(1) Submission of report.--The independent evaluator 
        shall--
                    ``(A) not later than 2 years after a project has 
                been approved by the Secretary and biannually 
                thereafter until the project is concluded, submit to 
                the head of the relevant agency and the Federal 
                Interagency Council on Social Impact Partnerships a 
                written report summarizing the progress that has been 
                made in achieving each outcome specified in the 
                agreement; and
                    ``(B) before the scheduled time of the first 
                outcome payment and before the scheduled time of each 
                subsequent payment, submit to the head of the relevant 
                agency and the Federal Interagency Council on Social 
                Impact Partnerships a written report that includes the 
                results of the evaluation conducted to determine 
                whether an outcome payment should be made along with 
                information on the unique factors that contributed to 
                achieving or failing to achieve the outcome, the 
                challenges faced in attempting to achieve the outcome, 
                and information on the improved future delivery of this 
                or similar interventions.
            ``(2) Submission to the secretary and congress.--Not later 
        than 30 days after receipt of the written report pursuant to 
        paragraph (1)(B), the Federal Interagency Council on Social 
        Impact Partnerships shall submit the report to the Secretary 
        and each committee of jurisdiction in the House of 
        Representatives and the Senate.
    ``(e) Final Report.--
            ``(1) Submission of report.--Within 6 months after the 
        social impact partnership project is completed, the independent 
        evaluator shall--
                    ``(A) evaluate the effects of the activities 
                undertaken pursuant to the agreement with regard to 
                each outcome specified in the agreement; and
                    ``(B) submit to the head of the relevant agency and 
                the Federal Interagency Council on Social Impact 
                Partnerships a written report that includes the results 
                of the evaluation and the conclusion of the evaluator 
                as to whether the State or local government has 
                fulfilled each obligation of the agreement, along with 
                information on the unique factors that contributed to 
                the success or failure of the project, the challenges 
                faced in attempting to achieve the outcome, and 
                information on the improved future delivery of this or 
                similar interventions.
            ``(2) Submission to the secretary and congress.--Not later 
        than 30 days after receipt of the written report pursuant to 
        paragraph (1)(B), the Federal Interagency Council on Social 
        Impact Partnerships shall submit the report to the Secretary 
        and each committee of jurisdiction in the House of 
        Representatives and the Senate.
    ``(f) Limitation on Cost of Evaluations.--Of the amounts 
appropriated to carry out this subtitle, the Secretary may not obligate 
more than 15 percent to evaluate the implementation and outcomes of the 
projects.
    ``(g) Delegation of Authority.--The Secretary may transfer to the 
head of another Federal agency the authorities provided in this section 
and any funds necessary to exercise the authorities.

``SEC. 2056. FEDERAL INTERAGENCY COUNCIL ON SOCIAL IMPACT PARTNERSHIPS.

    ``(a) Establishment.--There is established the Federal Interagency 
Council on Social Impact Partnerships (in this section referred to as 
the `Council') to--
            ``(1) coordinate with the Secretary on the efforts of 
        social impact partnership projects funded under this subtitle;
            ``(2) advise and assist the Secretary in the development 
        and implementation of the projects;
            ``(3) advise the Secretary on specific programmatic and 
        policy matter related to the projects;
            ``(4) provide subject-matter expertise to the Secretary 
        with regard to the projects;
            ``(5) certify to the Secretary that each State or local 
        government that has entered into an agreement with the 
        Secretary for a social impact partnership project under this 
        subtitle and each evaluator selected by the head of the 
        relevant agency under section 2055 has access to Federal 
        administrative data to assist the State or local government and 
        the evaluator in evaluating the performance and outcomes of the 
        project;
            ``(6) address issues that will influence the future of 
        social impact partnership projects in the United States;
            ``(7) provide guidance to the executive branch on the 
        future of social impact partnership projects in the United 
        States;
            ``(8) prior to approval by the Secretary, certify that each 
        State and local government application for a social impact 
        partnership contains rigorous, independent data and reliable, 
        evidence-based research methodologies to support the conclusion 
        that the project will yield savings to the State or local 
        government or the Federal Government if the project outcomes 
        are achieved;
            ``(9) certify to the Secretary, in the case of each 
        approved social impact partnership that is expected to yield 
        savings to the Federal Government, that the project will yield 
        a projected savings to the Federal Government if the project 
        outcomes are achieved, and coordinate with the relevant Federal 
        agency to produce an after-action accounting once the project 
        is complete to determine the actual Federal savings realized, 
        and the extent to which actual savings aligned with projected 
        savings; and
            ``(10) provide periodic reports to the Secretary and make 
        available reports periodically to Congress and the public on 
        the implementation of this subtitle.
    ``(b) Composition of Council.--The Council shall have 11 members, 
as follows:
            ``(1) Chair.--The Chair of the Council shall be the 
        Director of the Office of Management and Budget.
            ``(2) Other members.--The head of each of the following 
        entities shall designate one officer or employee of the entity 
        to be a Council member:
                    ``(A) The Department of Labor.
                    ``(B) The Department of Health and Human Services.
                    ``(C) The Social Security Administration.
                    ``(D) The Department of Agriculture.
                    ``(E) The Department of Justice.
                    ``(F) The Department of Housing and Urban 
                Development.
                    ``(G) The Department of Education.
                    ``(H) The Department of Veterans Affairs.
                    ``(I) The Department of the Treasury.
                    ``(J) The Corporation for National and Community 
                Service.

``SEC. 2057. COMMISSION ON SOCIAL IMPACT PARTNERSHIPS.

    ``(a) Establishment.--There is established the Commission on Social 
Impact Partnerships (in this section referred to as the `Commission').
    ``(b) Duties.--The duties of the Commission shall be to--
            ``(1) assist the Secretary and the Federal Interagency 
        Council on Social Impact Partnerships in reviewing applications 
        for funding under this subtitle;
            ``(2) make recommendations to the Secretary and the Federal 
        Interagency Council on Social Impact Partnerships regarding the 
        funding of social impact partnership agreements and feasibility 
        studies; and
            ``(3) provide other assistance and information as requested 
        by the Secretary or the Federal Interagency Council on Social 
        Impact Partnerships.
    ``(c) Composition.--The Commission shall be composed of nine 
members, of whom--
            ``(1) one shall be appointed by the President, who will 
        serve as the Chair of the Commission;
            ``(2) one shall be appointed by the Majority Leader of the 
        Senate;
            ``(3) one shall be appointed by the Minority Leader of the 
        Senate;
            ``(4) one shall be appointed by the Speaker of the House of 
        Representatives;
            ``(5) one shall be appointed by the Minority Leader of the 
        House of Representatives;
            ``(6) one shall be appointed by the Chairman of the 
        Committee on Finance of the Senate;
            ``(7) one shall be appointed by the ranking member of the 
        Committee on Finance of the Senate;
            ``(8) one member shall be appointed by the Chairman of the 
        Committee on Ways and Means of the House of Representatives; 
        and
            ``(9) one shall be appointed by the ranking member of the 
        Committee on Ways and Means of the House of Representatives.
    ``(d) Qualifications of Commission Members.--The members of the 
Commission shall--
            ``(1) be experienced in finance, economics, pay for 
        performance, or program evaluation;
            ``(2) have relevant professional or personal experience in 
        a field related to one or more of the outcomes listed in 
        section 2052(b); or
            ``(3) be qualified to review applications for social impact 
        partnership projects to determine whether the proposed metrics 
        and evaluation methodologies are appropriately rigorous and 
        reliant upon independent data and evidence-based research.
    ``(e) Timing of Appointments.--The appointments of the members of 
the Commission shall be made not later than 120 days after the date of 
the enactment of this subtitle, or, in the event of a vacancy, not 
later than 90 days after the date the vacancy arises. If a member of 
Congress fails to appoint a member by that date, the President may 
select a member of the President's choice on behalf of the member of 
Congress. Notwithstanding the preceding sentence, if not all 
appointments have been made to the Commission as of that date, the 
Commission may operate with no fewer than 5 members until all 
appointments have been made.
    ``(f) Term of Appointments.--
            ``(1) In general.--The members appointed under subsection 
        (c) shall serve as follows:
                    ``(A) Three members shall serve for 2 years.
                    ``(B) Three members shall serve for 3 years.
                    ``(C) Three members (one of which shall be Chair of 
                the Commission appointed by the President) shall serve 
                for 4 years.
            ``(2) Assignment of terms.--The Commission shall designate 
        the term length that each member appointed under subsection (c) 
        shall serve by unanimous agreement. In the event that unanimous 
        agreement cannot be reached, term lengths shall be assigned to 
        the members by a random process.
    ``(g) Vacancies.--Subject to subsection (e), in the event of a 
vacancy in the Commission, whether due to the resignation of a member, 
the expiration of a member's term, or any other reason, the vacancy 
shall be filled in the manner in which the original appointment was 
made and shall not affect the powers of the Commission.
    ``(h) Ethics Guidelines.--At the first meeting of the Commission, 
the Commission shall draft appropriate ethics guidelines for members of 
the Commission and staff. The guidelines shall include provisions 
relating to conflicts of interest, including financial conflicts of 
interest, divided allegiances, and financial disclosure requirements. 
The Commission shall consult with the Secretary as a part of drafting 
the guidelines and shall furnish the Secretary with a copy of the 
completed guidelines.
    ``(i) Appointment Power.--Members of the Commission appointed under 
subsection (c) shall not be subject to confirmation by the Senate.

``SEC. 2058. FUNDING.

    ``(a) In General.--Out of any money in the Treasury not otherwise 
appropriated, there is hereby appropriated to the Secretary, 
$300,000,000 to carry out the activities authorized under this 
subtitle, which shall remain available for expenditure through the date 
described in section 2053(c)(3).
    ``(b) Limitation on Use of Funds.--Of the amounts appropriated to 
carry out this subtitle, the Secretary may not use more than $2,000,000 
in any fiscal year to support the review, approval, and oversight of 
social impact partnership projects, including activities conducted by--
            ``(1) the Federal Interagency Council on Social Impact 
        Partnerships established under section 2056;
            ``(2) the Commission on Social Impact Partnerships 
        established under section 2057; and
            ``(3) any other agency consulted by the Secretary before 
        approving a social impact partnership project or a feasibility 
        study under section 2054.
    ``(c) No Federal Funding for Credit Enhancements.--No amount 
appropriated to carry out this subtitle may be used to provide any 
insurance, guarantee, or other credit enhancement to a State or local 
government under which a Federal payment would be made to a State or 
local government as the result of a State or local government failing 
to achieve an outcome specified in an agreement.

``SEC. 2059. WEBSITE.

    ``The Federal Interagency Council on Social Impact Partnerships 
shall establish and maintain a public website that shall display the 
following:
            ``(1) A copy of, or method of accessing, each notice 
        published regarding a social impact partnership project 
        pursuant to this subtitle.
            ``(2) A copy of each feasibility study funded under section 
        2054.
            ``(3) For each State or local government that has entered 
        into an agreement with the Secretary for a social impact 
        partnership project, the website shall contain the following 
        information:
                    ``(A) The outcome goals of the project.
                    ``(B) A description of each intervention in the 
                project.
                    ``(C) The target population that will be served by 
                the project.
                    ``(D) The expected social benefits to participants 
                who receive the intervention and others who may be 
                impacted.
                    ``(E) The detailed roles, responsibilities, and 
                purposes of each Federal, State, or local government 
                entity, intermediary, service provider, independent 
                evaluator, investor, or other stakeholder.
                    ``(F) The payment terms, methodology used to 
                calculate outcome payments, the payment schedule, and 
                performance thresholds.
                    ``(G) The project budget.
                    ``(H) The project timeline.
                    ``(I) The project eligibility criteria.
                    ``(J) The evaluation design.
                    ``(K) The metrics used to determine whether the 
                proposed outcomes have been achieved and how these 
                metrics are measured.
            ``(4) A copy of the progress reports and the final reports 
        relating to each social impact partnership project.
            ``(5) An estimate of the savings to the Federal, State, and 
        local government, on a program-by-program basis and in the 
        aggregate, resulting from the successful completion of the 
        social impact partnership project.

``SEC. 2060. REGULATIONS.

    ``The Secretary, in consultation with the Federal Interagency 
Council on Social Impact Partnerships, may issue regulations as 
necessary to carry out this subtitle.

``SEC. 2061. GAO EVALUATION.

    ``(a) In General.--Five years after the date of enactment of the 
Social Impact Partnerships to Pay for Results Act, the Comptroller 
General of the United States shall--
            ``(1) conduct an evaluation of the social impact 
        partnership projects funded under this subtitle and, to the 
        extent the Comptroller General determines necessary, of any 
        other activities carried out with funds made available to carry 
        out this subtitle; and
            ``(2) submit a report to the Committee on Ways and Means of 
        the House of Representatives and to the Committee on Finance of 
        the Senate that contains the results of such evaluation.
    ``(b) Access to Records.--The Comptroller General of the United 
States shall have access to any books, accounts, records, 
correspondence, and other documents that are related to the expenditure 
of Federal funds under this subtitle and that are in the possession, 
custody, or control of any entity receiving Federal funds under this 
subtitle or of any grantee or contractor of such an entity.

``SEC. 2062. DEFINITIONS.

    ``In this subtitle
            ``(1) Agency.--The term `agency' has the meaning given that 
        term in section 551 of title 5, United States Code.
            ``(2) Intervention.--The term `intervention' means a 
        specific service delivered to achieve an impact through a 
        social impact partnership project.
            ``(3) Secretary.--The term `Secretary' means the Secretary 
        of the Treasury.
            ``(4) Social impact partnership project.--The term `social 
        impact partnership project' means a project that finances 
        social services using a social impact partnership model.
            ``(5) Social impact partnership model.--The term `social 
        impact partnership model' means a method of financing social 
        services in which--
                    ``(A) Federal funds are awarded to a State or local 
                government only if a State or local government achieves 
                certain outcomes agreed on by the State or local 
                government and the Secretary; and
                    ``(B) the State or local government coordinates 
                with service providers, investors (if applicable to the 
                project), and (if necessary) an intermediary to 
                identify--
                            ``(i) an intervention expected to produce 
                        the outcome;
                            ``(ii) a service provider to deliver the 
                        intervention to the target population; and
                            ``(iii) investors to fund the delivery of 
                        the intervention.
            ``(6) State.--The term `State' means each State of the 
        United States, the District of Columbia, each commonwealth, 
        territory or possession of the United States, and each 
        federally recognized Indian tribe.''.
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