II 

114TH CONGRESS 

1ST SESSION S. 1089 

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, 2015 

Mr. HATCH (for himself and Mr. BENNET) 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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Social Impact Partner5 ship Act’’. 

6 SEC. 2. SOCIAL IMPACT PARTNERSHIPS. 

7 Title XX of the Social Security Act (42 U.S.C. 1397) 

8 is amended— 


emcdonald on DSK67QTVN1PROD with BILLS
2 

•S 1089 IS

1 (1) in the title heading, by striking ‘‘TO 

2 STATES’’ and inserting ‘‘AND PROJECTS’’; 

3 and 

4 (2) by adding at the end the following: 

5 ‘‘Subtitle C—Social Impact 

6 Partnerships 

7 ‘‘SEC. 2051. PURPOSES. 

8 ‘‘The purposes of this subtitle are the following: 

9 ‘‘(1) To improve the lives of families and indi10 viduals in need in the United States by funding so11 cial programs that achieve real results. 

12 ‘‘(2) To redirect funds away from programs 

13 that, based on objective data, are ineffective, and 

14 into programs that achieve demonstrable, measur15 able results. 

16 ‘‘(3) To ensure Federal funds are used effec17 tively on social services to produce positive outcomes 

18 for both service recipients and taxpayers. 

19 ‘‘(4) To establish the use of social impact part20 nerships to address some of our Nation’s most 

21 pressing problems. 

22 ‘‘(5) To facilitate the creation of public-private 

23 partnerships that bundle philanthropic and other 

24 private resources with existing public spending to 

25 scale up effective social interventions already being 


emcdonald on DSK67QTVN1PROD with BILLS
3 

•S 1089 IS

1 implemented by private organizations, non-profits, 

2 charitable organizations, and local governments 

3 across the country. 

4 ‘‘(6) To bring pay-for-performance to the social 

5 services sector, allowing the United States to im6 prove the impact and effectiveness of vital social 

7 services programs while redirecting inefficient or du8 plicative spending. 

9 ‘‘SEC. 2052. SOCIAL IMPACT PARTNERSHIP APPLICATION. 

10 ‘‘(a) NOTICE.—Not later than 1 year after the date 

11 of the enactment of this subtitle, the Secretary of the 

12 Treasury (referred to in this subtitle as the ‘Secretary’), 

13 in consultation with the Federal Interagency Council on 

14 Social Impact Partnerships (established by section 2056), 

15 shall publish in the Federal Register a request for pro16 posals from States or local governments for social impact 

17 partnership projects in accordance with this section. 

18 ‘‘(b) REQUIRED OUTCOMES FOR SOCIAL IMPACT

19 PARTNERSHIP PROJECT.—To qualify as a social impact 

20 partnership project under this subtitle, a project must 

21 produce a measurable, clearly defined outcome that results 

22 in social benefit and Federal savings through any of the 

23 following: 


emcdonald on DSK67QTVN1PROD with BILLS
4 

•S 1089 IS

1 ‘‘(1) Increasing work and earnings by individ2 uals who have been unemployed in the United States 

3 for more than 6 consecutive months. 

4 ‘‘(2) Increasing employment and earnings of in5 dividuals age 16 to 24. 

6 ‘‘(3) Increasing employment among individuals 

7 receiving Federal disability benefits. 

8 ‘‘(4) Reducing the dependence of low-income 

9 families on Federal means-tested benefits. 

10 ‘‘(5) Improving rates of high school graduation. 

11 ‘‘(6) Reducing teen and unplanned pregnancies. 

12 ‘‘(7) Improving birth outcomes among low-in13 come families and individuals. 

14 ‘‘(8) Reducing rates of asthma, diabetes, or 

15 other preventable diseases among low-income fami16 lies and individuals to reduce the utilization of emer17 gency and other high-cost care. 

18 ‘‘(9) Increasing the proportion of children living 

19 in 2-parent families. 

20 ‘‘(10) Reducing incidences of child abuse and 

21 neglect. 

22 ‘‘(11) Reducing the number of youth in foster 

23 care by increasing adoptions, permanent guardian24 ship arrangements, reunification, or placement with 

25 a fit and willing relative. 


emcdonald on DSK67QTVN1PROD with BILLS
5 

•S 1089 IS

1 ‘‘(12) Reducing the number of children and 

2 youth in foster care residing in group homes, child 

3 care institutions, agency-operated foster homes, or 

4 other non-family foster homes, unless it is deter5 mined that it is in the interest of the child’s long6 term health, safety, or psychological well-being to 

7 not be placed in a family foster home. 

8 ‘‘(13) Reducing recidivism among individuals 

9 released from prison. 

10 ‘‘(14) Improving the housing security of individ11 uals experiencing homelessness or at imminent risk 

12 of becoming homeless. 

13 ‘‘(15) Other measurable outcomes defined by 

14 the State or local government that result in positive 

15 social outcomes and Federal savings. 

16 ‘‘(c) FEASIBILITY STUDY REQUIRED.—The notice 

17 described in subsection (a) shall require a State or local 

18 government to submit a feasibility study for the social im19 pact partnership project that contains the following infor20 mation: 

21 ‘‘(1) The outcome goals of the project. 

22 ‘‘(2) A description of each intervention in the 

23 project and anticipated outcome of such interven24 tion. 


emcdonald on DSK67QTVN1PROD with BILLS
6 

•S 1089 IS

1 ‘‘(3) Rigorous evidence demonstrating that the 

2 intervention can be expected to produce the desired 

3 outcomes. 

4 ‘‘(4) The target population that will be served 

5 by the project. 

6 ‘‘(5) The expected social benefits to participants 

7 who receive the intervention and others who may be 

8 impacted. 

9 ‘‘(6) Projected Federal, State, and local govern10 ment costs and other costs to conduct the project. 

11 ‘‘(7) Projected Federal, State, and local govern12 ment savings and other savings, including an esti13 mate prepared by the State or local government of 

14 the savings to the Federal, State, and local govern15 ment, on a program-by-program basis and in the ag16 gregate, if the project is implemented and the out17 comes are achieved. 

18 ‘‘(8) If savings resulting from the successful 

19 completion of the project are estimated to accrue to 

20 the State or local government, the likelihood of the 

21 State or local government to realize those savings. 

22 ‘‘(9) A plan for delivering the intervention 

23 through a social impact partnership model. 

24 ‘‘(10) A description of the expertise of each 

25 service provider that will administer the intervention. 


emcdonald on DSK67QTVN1PROD with BILLS
7 

•S 1089 IS

1 ‘‘(11) An explanation of the experience of the 

2 State or local government, the intermediary, or the 

3 service provider in raising private and philanthropic 

4 capital to fund social service investments. 

5 ‘‘(12) The detailed roles and responsibilities of 

6 each entity involved in the project, including any 

7 State or local government entity, intermediary, serv8 ice provider, independent evaluator, investor, or 

9 other stakeholder. 

10 ‘‘(13) A summary of the experience of the serv11 ice provider delivering the proposed intervention or 

12 a similar intervention, or a summary demonstrating 

13 that the service provider has the expertise necessary 

14 to deliver the proposed intervention. 

15 ‘‘(14) A summary of the unmet need in the 

16 area where the intervention will be delivered or 

17 among the target population who will receive the 

18 intervention. 

19 ‘‘(15) The payment terms, the methodology 

20 used to calculate outcome payments, the payment 

21 schedule, and performance thresholds. 

22 ‘‘(16) The project budget. 

23 ‘‘(17) The project timeline. 

24 ‘‘(18) The criteria used to determine the eligi25 bility of an individual for the project, including how 


emcdonald on DSK67QTVN1PROD with BILLS
8 

•S 1089 IS

1 selected populations will be identified, how they will 

2 be referred to the project, and how they will be en3 rolled in the project. 

4 ‘‘(19) The evaluation design. 

5 ‘‘(20) The metrics that will be used to deter6 mine whether the outcomes have been achieved and 

7 how such metrics will be measured. 

8 ‘‘(21) An explanation of how the metrics used 

9 to determine whether the outcomes have been 

10 achieved are independent, objective indicators of im11 pact and are not subject to manipulation by the 

12 service provider or investor. 

13 ‘‘(22) A summary explaining the independence 

14 of the evaluator from the other entities involved in 

15 the project and the evaluator’s experience in con16 ducting rigorous evaluations of program effective17 ness including, where available, well-implemented 

18 randomized controlled trials on the intervention or 

19 similar interventions. 

20 ‘‘(23) The capacity of the service provider to 

21 deliver the intervention to the number of partici22 pants the State or local government proposes to 

23 serve in the project. 

24 ‘‘(d) PROJECT INTERMEDIARY INFORMATION RE25 QUIRED.—The feasibility study described in subsection (c) 


emcdonald on DSK67QTVN1PROD with BILLS
9 

•S 1089 IS

1 shall also contain the following information about the 

2 intermediary for the social impact partnership project 

3 (whether the intermediary is the service provider or other 

4 entity): 

5 ‘‘(1) Experience and capacity for providing or 

6 facilitating the provision of the type of intervention 

7 proposed. 

8 ‘‘(2) The mission and goals. 

9 ‘‘(3) Information on whether the intermediary 

10 is already working with service providers that pro11 vide this intervention or an explanation of the capac12 ity of the intermediary to begin working with service 

13 providers to provide the intervention. 

14 ‘‘(4) Experience working in a collaborative envi15 ronment across government and nongovernmental 

16 entities. 

17 ‘‘(5) Previous experience collaborating with 

18 public or private entities to implement evidence19 based programs. 

20 ‘‘(6) Ability to raise or provide funding to cover 

21 operating costs (if applicable to the project). 

22 ‘‘(7) Capacity and infrastructure to track out23 comes and measure results, including— 

24 ‘‘(A) capacity to track and analyze pro25 gram performance; and 


emcdonald on DSK67QTVN1PROD with BILLS
10 

•S 1089 IS

1 ‘‘(B) experience with performance-based 

2 contracting and achieving project milestones 

3 and targets. 

4 ‘‘(8) Role in delivering the intervention. 

5 ‘‘(9) How the intermediary would monitor pro6 gram success, including a description of the interim 

7 benchmarks and outcome measures. 

8 ‘‘SEC. 2053. AWARDING CONTRACTS FOR SOCIAL IMPACT 

9 PARTNERSHIP PROJECTS. 

10 ‘‘(a) TIMELINE IN AWARDING CONTRACT.—Not later 

11 than 6 months after receiving an application in accordance 

12 with section 2052, the Secretary shall determine whether 

13 to enter into a contract for a social impact partnership 

14 project with the State or local government that submitted 

15 such application. 

16 ‘‘(b) CONSIDERATIONS IN AWARDING CONTRACT.— 

17 In determining whether to enter into a contract for a so18 cial impact partnership project with a State or local gov19 ernment, the Secretary, in consultation with the Federal 

20 Interagency Council on Social Impact Partnerships and 

21 the head of any Federal agency administering a similar 

22 intervention or serving a population similar to that served 

23 by the project, shall consider each of the following: 


emcdonald on DSK67QTVN1PROD with BILLS
11 

•S 1089 IS

1 ‘‘(1) The value to the Federal Government of 

2 the outcome expected to be achieved if the outcomes 

3 specified in the contract are achieved. 

4 ‘‘(2) The ability of the State or local govern5 ment, in collaboration with the intermediary and the 

6 service providers, to achieve the outcomes. 

7 ‘‘(3) The savings to the Federal Government if 

8 the outcomes specified in contract are achieved. 

9 ‘‘(4) The savings to the State and local govern10 ments if the outcomes specified in the contract are 

11 achieved. 

12 ‘‘(5) The expected quality of the evaluation that 

13 would be conducted with respect to the contract. 

14 ‘‘(c) CONTRACT AUTHORITY.— 

15 ‘‘(1) CONTRACT REQUIREMENTS.—In accord16 ance with this section, the Secretary, in consultation 

17 with the Federal Interagency Council on Social Im18 pact Partnerships and the head of any Federal agen19 cy administering a similar intervention or serving a 

20 population similar to that served by the project, may 

21 enter into a contract for a social impact partnership 

22 project with a State or local government if the Sec23 retary determines that each of the following require24 ments are met: 


emcdonald on DSK67QTVN1PROD with BILLS
12 

•S 1089 IS

1 ‘‘(A) The State or local government agrees 

2 to achieve an outcome specified in the contract 

3 in order to receive payment. 

4 ‘‘(B) The Federal payment to the State or 

5 local government for each outcome specified 

6 does not exceed the monetary value of the out7 come to the Federal Government over a period 

8 not to exceed 10 years, as determined by the 

9 Secretary, in consultation with the State or 

10 local government. 

11 ‘‘(C) The duration of the project does not 

12 exceed 10 years. 

13 ‘‘(D) The State or local government has 

14 demonstrated, through the application sub15 mitted under section 2052, that, based on prior 

16 rigorous experimental evaluations or rigorous 

17 quasi-experimental studies, the intervention can 

18 be expected to achieve each outcome specified in 

19 the contract. 

20 ‘‘(E) The State, local government, inter21 mediary, or service provider has experience rais22 ing private or philanthropic capital to fund so23 cial service investments (if applicable to the 

24 project). 


emcdonald on DSK67QTVN1PROD with BILLS
13 

•S 1089 IS

1 ‘‘(F) The State or local government has 

2 shown that each service provider has experience 

3 delivering the intervention, a similar interven4 tion, or has otherwise demonstrated the exper5 tise necessary to deliver the intervention. 

6 ‘‘(2) PAYMENT.—The Secretary shall pay the 

7 State or local government only if the independent 

8 evaluator described in section 2055 determines that 

9 the social impact partnership project has met the re10 quirements specified in the contract and achieved an 

11 outcome specified in the contract. 

12 ‘‘(3) LIMITATION.—The Secretary shall not 

13 enter into a contract for a social impact partnership 

14 project under paragraph (1) after the date that is 10 

15 years after the date of the enactment of this subtitle 

16 and shall not obligate any funds made available 

17 under section 2057(a) after such date. 

18 ‘‘(d) NOTICE OF CONTRACT AWARD.—Not later than 

19 30 days after entering into a contract under this section, 

20 the Secretary shall publish a notice in the Federal Reg21 ister that includes, with regard to such contract, the fol22 lowing: 

23 ‘‘(1) The outcome goals of the social impact 

24 partnership project. 


emcdonald on DSK67QTVN1PROD with BILLS
14 

•S 1089 IS

1 ‘‘(2) A description of each intervention in the 

2 project. 

3 ‘‘(3) The target population that will be served 

4 by the project. 

5 ‘‘(4) The expected social benefits to participants 

6 who receive the intervention and others who may be 

7 impacted. 

8 ‘‘(5) The detailed roles, responsibilities, and 

9 purposes of each Federal, State, or local government 

10 entity, intermediary, service provider, independent 

11 evaluator, investor, or other stakeholder. 

12 ‘‘(6) The payment terms, the methodology used 

13 to calculate outcome payments, the payment sched14 ule, and performance thresholds. 

15 ‘‘(7) The project budget. 

16 ‘‘(8) The project timeline. 

17 ‘‘(9) The project eligibility criteria. 

18 ‘‘(10) The evaluation design. 

19 ‘‘(11) The metrics that will be used to deter20 mine whether the outcomes have been achieved and 

21 how these metrics will be measured. 

22 ‘‘(12) The estimate prepared by the State or 

23 local government of the savings to the Federal, 

24 State, and local government, on a program-by-pro25 gram basis and in the aggregate, if the contract is 


emcdonald on DSK67QTVN1PROD with BILLS
15 

•S 1089 IS

1 entered into and implemented and the outcomes are 

2 achieved. 

3 ‘‘SEC. 2054. FEASIBILITY STUDY FUNDING. 

4 ‘‘(a) REQUESTS FOR FUNDING FOR FEASIBILITY

5 STUDIES.—The Secretary shall reserve a portion of the 

6 funding provided in section 2057 to assist States or local 

7 governments in developing feasibility studies required by 

8 section 2052. To be eligible to receive funding to assist 

9 with completing a feasibility study, a State or local govern10 ment shall submit an application for feasibility study fund11 ing containing the following information: 

12 ‘‘(1) A description of the outcome goals of the 

13 social impact partnership project. 

14 ‘‘(2) A description of the intervention, including 

15 anticipated program design, target population, an 

16 estimate regarding the number of individuals to be 

17 served, and setting for the intervention. 

18 ‘‘(3) Evidence to support the likelihood that 

19 such intervention will produce the desired outcome. 

20 ‘‘(4) The expected social benefits to participants 

21 who receive the intervention and others who may be 

22 impacted. 

23 ‘‘(5) Estimated costs to conduct the project. 


emcdonald on DSK67QTVN1PROD with BILLS
16 

•S 1089 IS

1 ‘‘(6) Estimates of Federal, State, and local gov2 ernment savings and other savings if the project is 

3 implemented and the outcomes are achieved. 

4 ‘‘(7) An estimated timeline for implementation 

5 and completion of the project, which shall not exceed 

6 10 years. 

7 ‘‘(8) With respect to a project for which the 

8 State or local government selects an intermediary to 

9 operate the project, any partnerships needed to suc10 cessfully execute the project and the ability of the 

11 intermediary to foster such partnerships. 

12 ‘‘(9) The expected resources needed to complete 

13 the feasibility study for the State or local govern14 ment to apply for social impact partnership funding 

15 under section 2052. 

16 ‘‘(b) FEDERAL SELECTION OF APPLICATIONS FOR

17 FEASIBILITY STUDY.—Not later than 6 months after re18 ceiving an application for feasibility study funding under 

19 subsection (a), the Secretary, in consultation with the 

20 Federal Interagency Council on Social Impact Partner21 ships and the head of any Federal agency administering 

22 a similar intervention or serving a population similar to 

23 that served by the project, shall select State or local gov24 ernment feasibility study proposals for funding based on 

25 the following: 


emcdonald on DSK67QTVN1PROD with BILLS
17 

•S 1089 IS

1 ‘‘(1) The likelihood that the proposal will 

2 achieve the desired outcome. 

3 ‘‘(2) The value of the outcome expected to be 

4 achieved. 

5 ‘‘(3) The potential savings to the Federal Gov6 ernment if the social impact partnership project is 

7 successful. 

8 ‘‘(4) The potential savings to the State and 

9 local governments if the project is successful. 

10 ‘‘(c) PUBLIC DISCLOSURE.—Not later than 30 days 

11 after selecting a State or local government for feasibility 

12 study funding under this section, the Secretary shall pub13 lish on the website of the Federal Interagency Council on 

14 Social Impact Partnerships information explaining why 

15 the State or local government was granted feasibility study 

16 funding. 

17 ‘‘(d) FUNDING RESTRICTIONS; NO GUARANTEE OF

18 FUNDING.— 

19 ‘‘(1) FEASIBILITY STUDY RESTRICTION.—The 

20 Secretary shall not provide feasibility study funding 

21 under this section for more than 50 percent of the 

22 estimated total cost of the feasibility study reported 

23 in the State or local government application sub24 mitted under subsection (a). 


emcdonald on DSK67QTVN1PROD with BILLS
18 

•S 1089 IS

1 ‘‘(2) AGGREGATE RESTRICTION.—Of the total 

2 amount appropriated under section 2057, the Sec3 retary shall not use more than $10,000,000 to pro4 vide feasibility study funding to States or local gov5 ernments under this section. 

6 ‘‘(3) NO GUARANTEE OF FUNDING.—The Sec7 retary shall have the option to award no funding 

8 under this section. 

9 ‘‘(e) SUBMISSION OF FEASIBILITY STUDY RE10 QUIRED.—Not later than 6 months after the receipt of 

11 feasibility study funding under this section, a State or 

12 local government receiving such funding shall complete the 

13 feasibility study and submit the study to the Federal 

14 Interagency Council on Social Impact Partnerships. 

15 ‘‘SEC. 2055. EVALUATIONS. 

16 ‘‘(a) CONTRACT AUTHORITY.—For each State or 

17 local government awarded a social impact partnership 

18 project approved by the Secretary under this subtitle, the 

19 head of the relevant agency, as determined by the Federal 

20 Interagency Council on Social Impact Partnerships, shall 

21 enter into a contract with such State or local government 

22 to pay for the independent evaluation to determine wheth23 er the State or local government project has met an out24 come specified in the contract in order for the State or 


emcdonald on DSK67QTVN1PROD with BILLS
19 

•S 1089 IS

1 local government to receive outcome payments under this 

2 subtitle. 

3 ‘‘(b) EVALUATOR QUALIFICATIONS.—The head of the 

4 relevant agency may not enter into a contract with a State 

5 or local government under subsection (a) unless the head 

6 determines that the evaluator is independent of the other 

7 parties to the contract and has demonstrated substantial 

8 experience in conducting rigorous evaluations of program 

9 effectiveness including, where available and appropriate, 

10 well-implemented randomized controlled trials on the 

11 intervention or similar interventions. 

12 ‘‘(c) METHODOLOGIES TO BE USED.— 

13 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

14 the evaluation used to determine whether a State or 

15 local government will receive outcome payments 

16 under this subtitle shall, to the extent practicable, 

17 use methodologies based on experimental designs 

18 using random assignment, or, when random assign19 ment is not feasible or appropriate, other reliable, 

20 evidence-based research methodologies, as certified 

21 by the Federal Interagency Council on Social Impact 

22 Partnerships, that allow for the strongest possible 

23 direct, causal inferences. 

24 ‘‘(2) LIMITATION.—In determining whether an 

25 outcome has been achieved, the evaluation methodVerDate Sep 11 2014 23:37 May 06, 2015 Jkt 049200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\S1089.IS S1089

emcdonald on DSK67QTVN1PROD with BILLS
20 

•S 1089 IS

1 ology selected under paragraph (1) shall not con2 sider indirect potential savings to the Federal Gov3 ernment that may be realized from increased in4 come, employment, output, or other economic meas5 ures derived from multiplier effects external to the 

6 outcome metrics upon which contract payments are 

7 based. 

8 ‘‘(3) APPLICATION OF EXECUTIVE ORDER

9 13563.—Executive Order 13563 (76 Fed. Reg. 3821; 

10 relating to regulatory review) shall not apply to the 

11 development and selection of methodologies under 

12 this subsection. 

13 ‘‘(d) PROGRESS REPORT.— 

14 ‘‘(1) SUBMISSION OF REPORT.—The inde15 pendent evaluator shall— 

16 ‘‘(A) not later than 2 years after a project 

17 has been approved by the Secretary and bian18 nually thereafter until the project is concluded, 

19 submit to the head of the relevant agency and 

20 the Federal Interagency Council on Social Im21 pact Partnerships a written report summarizing 

22 the progress that has been made in achieving 

23 each outcome specified in the contract; and 

24 ‘‘(B) at the scheduled time of the first out25 come payment and at the time of each subseVerDate Sep 11 2014 00:47 May 09, 2015 Jkt 049200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\S1089.IS S1089

emcdonald on DSK67QTVN1PROD with BILLS
21 

•S 1089 IS

1 quent payment, submit to the head of the rel2 evant agency and the Federal Interagency 

3 Council on Social Impact Partnerships a writ4 ten report that includes the results of the eval5 uation conducted to determine whether an out6 come payment should be made along with infor7 mation on the unique factors that contributed 

8 to achieving or failing to achieve the outcome, 

9 the challenges faced in attempting to achieve 

10 the outcome, and information on the improved 

11 future delivery of this or similar interventions. 

12 ‘‘(2) SUBMISSION TO CONGRESS.—Not later 

13 than 30 days after receipt of the written report pur14 suant to paragraph (1)(B), the Federal Interagency 

15 Council on Social Impact Partnerships shall submit 

16 such report to each committee of jurisdiction in the 

17 House of Representatives and the Senate. 

18 ‘‘(e) FINAL REPORT.— 

19 ‘‘(1) SUBMISSION OF REPORT.—Within 6 

20 months after the social impact partnership project is 

21 completed, the independent evaluator shall— 

22 ‘‘(A) evaluate the effects of the activities 

23 undertaken pursuant to the contract with re24 gard to each outcome specified in the contract; 

25 and 


emcdonald on DSK67QTVN1PROD with BILLS
22 

•S 1089 IS

1 ‘‘(B) submit to the head of the relevant 

2 agency and the Federal Interagency Council on 

3 Social Impact Partnerships a written report 

4 that includes the results of the evaluation and 

5 the conclusion of the evaluator as to whether 

6 the State or local government has fulfilled each 

7 obligation of the contract, along with informa8 tion on the unique factors that contributed to 

9 the success or failure of the project, the chal10 lenges faced in attempting to achieve the out11 come, and information on the improved future 

12 delivery of this or similar interventions. 

13 ‘‘(2) SUBMISSION TO CONGRESS.—Not later 

14 than 30 days after receipt of the written report pur15 suant to paragraph (1)(B), the Federal Interagency 

16 Council on Social Impact Partnerships shall submit 

17 such report to each committee of jurisdiction in the 

18 House of Representatives and the Senate. 

19 ‘‘(f) LIMITATION ON COST OF EVALUATIONS.—Of 

20 the amount made available for social impact partnership 

21 projects in section 2057, the Secretary may not obligate 

22 more than 15 percent of such amount to evaluate the im23 plementation and outcomes of such projects. 


emcdonald on DSK67QTVN1PROD with BILLS
23 

•S 1089 IS

1 ‘‘SEC. 2056. FEDERAL INTERAGENCY COUNCIL ON SOCIAL 

2 IMPACT PARTNERSHIPS. 

3 ‘‘(a) ESTABLISHMENT; DUTIES.—There is estab4 lished the Federal Interagency Council on Social Impact 

5 Partnerships (in this section, referred to as the ‘Council’). 

6 The duties of the Council shall be to— 

7 ‘‘(1) coordinate the efforts of social impact 

8 partnership projects funded by this subtitle; 

9 ‘‘(2) advise and assist the Secretary in the de10 velopment and implementation of such projects; 

11 ‘‘(3) advise the Secretary on specific pro12 grammatic and policy matter related to such 

13 projects; 

14 ‘‘(4) provide subject-matter expertise to the 

15 Secretary with regard to such projects; 

16 ‘‘(5) ensure that each State or local government 

17 that has entered into a contract with the Secretary 

18 for a social impact partnership project under this 

19 subtitle and each evaluator selected by the head of 

20 the relevant agency under section 2055 has access to 

21 Federal administrative data to assist the State or 

22 local government and the evaluator in evaluating the 

23 performance and outcomes of the project; 

24 ‘‘(6) provide guidance to the executive branch 

25 on the future of social impact partnership projects 

26 in the United States; 


emcdonald on DSK67QTVN1PROD with BILLS
24 

•S 1089 IS

1 ‘‘(7) review State and local government applica2 tions for social impact partnership projects to ensure 

3 that contracts will only be awarded under this sub4 title when rigorous, independent data and reliable, 

5 evidence-based research methodologies support the 

6 conclusion that a contract will yield savings to the 

7 Federal Government that are equal to or greater 

8 than the size of the outlay through the contract be9 fore such applications are approved by the Sec10 retary; 

11 ‘‘(8) certify, in the case of each approved social 

12 impact partnership project, that the project will yield 

13 a projected savings to the Federal Government, and 

14 coordinate with the relevant Federal agency to 

15 produce an after-action accounting once the project 

16 is complete to determine the actual Federal savings 

17 realized, and the extent to which actual savings 

18 aligned with projected savings; and 

19 ‘‘(9) provide oversight of the actions of the Sec20 retary and other Federal officials under this subtitle, 

21 and report periodically to Congress and the public 

22 on the implementation of this subtitle. 

23 ‘‘(b) COMPOSITION OF COUNCIL.— 

24 ‘‘(1) PRESIDENTIAL APPOINTEES.—The Presi25 dent of the United States shall select 3 members of 


emcdonald on DSK67QTVN1PROD with BILLS
25 

•S 1089 IS

1 the Council, at least 1 of whom shall be an official 

2 of the Department of the Treasury and at least 1 of 

3 whom shall not be an employee of the Federal Gov4 ernment. The President shall designate 1 of these 3 

5 members as the Chair of the Council. The Chair 

6 shall serve for a term of 7 years, and the other 

7 members selected by the President shall serve terms 

8 of 4 and 6 years. The President shall determine 

9 which member serves 4 years and which serves 6 

10 years. 

11 ‘‘(2) ADDITIONAL APPOINTEES.—In addition to 

12 the 3 members appointed under paragraph (1), the 

13 Council shall be further composed of the following 8 

14 members: 

15 ‘‘(A) 1 member selected by the President 

16 of the United States from a list of candidates 

17 provided by the Majority Leader of the Senate; 

18 ‘‘(B) 1 member selected by the President 

19 from a list of candidates provided by the Minor20 ity Leader of the Senate; 

21 ‘‘(C) 1 member selected by the President 

22 from a list of candidates provided by the Speak23 er of the House of Representatives; 


emcdonald on DSK67QTVN1PROD with BILLS
26 

•S 1089 IS

1 ‘‘(D) 1 member selected by the President 

2 from a list of candidates provided by the Minor3 ity Leader of the House of Representatives; 

4 ‘‘(E) 1 member selected by the President 

5 from a list of candidates provided by the Chair6 man of the Committee on Finance of the Sen7 ate; 

8 ‘‘(F) 1 member selected by the President 

9 from a list of candidates provided by the Rank10 ing Member of the Committee on Finance of 

11 the Senate; 

12 ‘‘(G) 1 member selected by the President 

13 from a list of candidates provided by the Chair14 man of the Committee on Ways and Means of 

15 the House of Representatives; and 

16 ‘‘(H) 1 member selected by the President 

17 from a list of candidates provided by the Rank18 ing Member of the Committee on Ways and 

19 Means of the House of Representatives. 

20 ‘‘(3) QUALIFICATIONS.—The membership of the 

21 Council shall consist of individuals who— 

22 ‘‘(A) are experienced in finance, economics, 

23 pay for performance finance or statistics; 


emcdonald on DSK67QTVN1PROD with BILLS
27 

•S 1089 IS

1 ‘‘(B) have relevant professional or personal 

2 experience in a field related to 1 or more of the 

3 outcomes listed in section 2052(b); and 

4 ‘‘(C) are qualified to review applications 

5 for social impact partnership projects to deter6 mine whether the proposed metrics and evalua7 tion methodologies are appropriately rigorous 

8 and reliant upon independent data and evi9 dence-based research. 

10 ‘‘(4) TIMING OF APPOINTMENTS.— 

11 ‘‘(A) CANDIDATE LISTS.—With respect to 

12 the candidate lists described in paragraph (2), 

13 the designated member of Congress shall pro14 vide a list of candidates to the President not 

15 later than 90 days after the date of the enact16 ment of this subtitle, or, in the event of a va17 cancy, not later than 90 days after the date 

18 upon which the vacancy arises. If a member of 

19 Congress fails to provide a list of candidates to 

20 the President by such date, the President may 

21 select a member of the President’s choice on be22 half of such member of Congress. 

23 ‘‘(B) APPOINTMENT DATE.—All appoint24 ments of the members of the Council shall be 

25 made not later than 120 days after the date of 


emcdonald on DSK67QTVN1PROD with BILLS
28 

•S 1089 IS

1 the enactment of this subtitle. Notwithstanding 

2 the preceding sentence, if not all appointments 

3 have been made to the Council as of such date, 

4 the Council may operate with fewer than all 11 

5 members until all appointments have been 

6 made. 

7 ‘‘(5) TERM OF APPOINTMENTS.— 

8 ‘‘(A) IN GENERAL.—The members ap9 pointed under paragraph (2) shall serve as fol10 lows: 

11 ‘‘(i) 2 members shall serve for 3 

12 years. 

13 ‘‘(ii) 2 members shall serve for 4 

14 years. 

15 ‘‘(iii) 2 members shall serve for 5 

16 years. 

17 ‘‘(iv) 2 members shall serve for 6 

18 years. 

19 ‘‘(B) ASSIGNMENT OF TERMS.—The Coun20 cil shall designate the term length that each 

21 member appointed under paragraph (2) shall 

22 serve by unanimous agreement. In the event 

23 that unanimous agreement cannot be reached, 

24 term lengths shall be assigned to such members 

25 by a random process. 


emcdonald on DSK67QTVN1PROD with BILLS
29 

•S 1089 IS

1 ‘‘(6) VACANCIES.— 

2 ‘‘(A) IN GENERAL.—Subject to subpara3 graph (B), in the event of a vacancy in the 

4 Council, whether due to the resignation of a 

5 member, the expiration of a member’s term, or 

6 any other reason, such vacancy shall be filled in 

7 the manner in which the original appointment 

8 was made and shall not affect the powers of the 

9 Council. 

10 ‘‘(B) POLITICAL PARTY BALANCE RULE.— 

11 If the member of Congress required to provide 

12 a list of candidates under paragraph (2) to fill 

13 a vacancy in a position in accordance with this 

14 paragraph is not of the same political party as 

15 the member of Congress providing the list of 

16 candidates for the original appointment to such 

17 position, the list of candidates to fill such va18 cancy shall be provided instead by the member 

19 of the other political party occupying the cor20 responding position in the House of Congress 

21 or congressional committee concerned. 

22 ‘‘(7) APPOINTMENT POWER.—Members of the 

23 Council appointed under this section shall not be 

24 subject to confirmation by the Senate. 

25 ‘‘(c) RULES OF THE COUNCIL.— 


emcdonald on DSK67QTVN1PROD with BILLS
30 

•S 1089 IS

1 ‘‘(1) CHARTER.—The Council shall file a char2 ter that meets the requirements of section 9(c) of 

3 the Federal Advisory Committee Act (5 U.S.C. 

4 App.) with the Secretary. Such charter shall be pub5 lished on the website the Council is required to es6 tablish under section 2058. 

7 ‘‘(2) COUNCIL PROCEDURES.—Section 10 of the 

8 Federal Advisory Committee Act (5 U.S.C. App.), 

9 other than subsections (e) and (f), shall apply to the 

10 Council. 

11 ‘‘(3) TRANSCRIPTS.—Section 11 of the Federal 

12 Advisory Committee Act (5 U.S.C. App.) shall apply 

13 to the Council. 

14 ‘‘(4) COMPENSATION.—Members of the Coun15 cil— 

16 ‘‘(A) shall not receive compensation for 

17 service on the Council; and 

18 ‘‘(B) shall be allowed travel expenses, in19 cluding per diem in lieu of subsistence, at rates 

20 authorized for employees of agencies under sub21 chapter I of chapter 57 of title 5, United States 

22 Code, while away from their homes or regular 

23 places of business in the performance of service 

24 for the Council. 


emcdonald on DSK67QTVN1PROD with BILLS
31 

•S 1089 IS

1 ‘‘(d) AGENCY LIAISONS.—The Council shall liaise, as 

2 needed, with officers or employees of each Federal agency 

3 that becomes involved with the social impact partnership 

4 selection and obligation process who are designated by the 

5 head of the agency to serve as liaison to the Council. 

6 ‘‘(e) RULE OF CONSTRUCTION.—Nothing in this sec7 tion shall give the Council the authority to abrogate a con8 tract entered into by the Secretary under section 2053, 

9 or any payment associated with such contract that is pay10 able under such section. 

11 ‘‘SEC. 2057. FUNDING. 

12 ‘‘(a) IN GENERAL.—Out of any money in the Treas13 ury not otherwise appropriated, there is hereby appro14 priated $300,000,000 to remain available until 10 years 

15 after the date specified in section 2053(c)(3) to carry out 

16 the activities authorized under this subtitle. Amounts ap17 propriated under this subsection that are unobligated as 

18 of such date shall be rescinded on such date, except that 

19 the Secretary may retain an amount not to exceed 

20 $6,000,000 for an additional 3 years for purposes of car21 rying out functions necessary to administer contracts that 

22 were awarded under this subtitle prior to such date. 

23 ‘‘(b) LIMITATION.—Of the amounts made available 

24 under subsection (a), the Secretary shall not use more 

25 than $30,000,000 to support the review, approval, and 


emcdonald on DSK67QTVN1PROD with BILLS
32 

•S 1089 IS

1 oversight of social impact partnership projects (and shall 

2 not use more than $15,000,000 for such purposes during 

3 the period of the fiscal year in which the Secretary pub4 lishes the request for proposals required under section 

5 2052(a) and the subsequent 2 fiscal years), including ac6 tivities conducted by— 

7 ‘‘(1) the Federal Interagency Council on Social 

8 Impact Partnerships; and 

9 ‘‘(2) any other agency consulted by the Sec10 retary before approving a social impact partnership 

11 project or a feasibility study under section 2054. 

12 ‘‘SEC. 2058. WEBSITE. 

13 ‘‘The Federal Interagency Council on Social Impact 

14 Partnerships shall establish and maintain a public website 

15 that shall display the following: 

16 ‘‘(1) A copy of, or method of accessing, each 

17 notice published regarding a social impact partner18 ship project pursuant to this subtitle. 

19 ‘‘(2) For each State or local government that 

20 has entered into a contract with the Secretary for a 

21 social impact partnership project, the website shall 

22 contain the following information: 

23 ‘‘(A) The outcome goals of the project. 

24 ‘‘(B) A description of each intervention in 

25 the project. 


emcdonald on DSK67QTVN1PROD with BILLS
33 

•S 1089 IS

1 ‘‘(C) The target population that will be 

2 served by the project. 

3 ‘‘(D) The expected social benefits to par4 ticipants who receive the intervention and oth5 ers who may be impacted. 

6 ‘‘(E) The detailed roles, responsibilities, 

7 and purposes of each Federal, State, or local 

8 government entity, intermediary, service pro9 vider, independent evaluator, investor, or other 

10 stakeholder. 

11 ‘‘(F) The payment terms, methodology 

12 used to calculate outcome payments, the pay13 ment schedule, and performance thresholds. 

14 ‘‘(G) The project budget. 

15 ‘‘(H) The project timeline. 

16 ‘‘(I) The project eligibility criteria. 

17 ‘‘(J) The evaluation design. 

18 ‘‘(K) The metrics used to determine wheth19 er the proposed outcomes have been achieved 

20 and how these metrics are measured. 

21 ‘‘(3) A copy of the progress reports and the 

22 final reports relating to each social impact partner23 ship project. 

24 ‘‘(4) An estimate of the savings to the Federal, 

25 State, and local government, on a program-by-proVerDate Sep 11 2014 23:37 May 06, 2015 Jkt 049200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 E:\BILLS\S1089.IS S1089

emcdonald on DSK67QTVN1PROD with BILLS
34 

•S 1089 IS

1 gram basis and in the aggregate, resulting from the 

2 successful completion of the social impact partner3 ship project. 

4 ‘‘(5) A copy of the Council’s charter. 

5 ‘‘SEC. 2059. REGULATIONS. 

6 ‘‘The Secretary, in consultation with the Federal 

7 Interagency Council on Social Impact Partnerships, may 

8 issue regulations as necessary to carry out this subtitle. 

9 ‘‘SEC. 2060. GAO AUDITS. 

10 ‘‘(a) AUTHORITY TO AUDIT.—The Comptroller Gen11 eral of the United States may audit the activities of any 

12 State, local government, or nongovernmental entity that 

13 receives funds under this subtitle to the extent that such 

14 activities are relevant to the operation of a social impact 

15 partnership project under this subtitle. 

16 ‘‘(b) ACCESS TO INFORMATION.— 

17 ‘‘(1) IN GENERAL.—Notwithstanding any other 

18 provision of law, the Comptroller General shall, upon 

19 request and at such reasonable time and in such rea20 sonable form as the Comptroller General may re21 quest, have access to— 

22 ‘‘(A) any records or other information 

23 under the control of or used by any State, local 

24 government, or nongovernmental entity that re25 ceives funds under this subtitle, to the extent 


emcdonald on DSK67QTVN1PROD with BILLS
35 

•S 1089 IS

1 that such records or other information are rel2 evant to an audit under subsection (a); 

3 ‘‘(B) any records or other information 

4 under the control of a person or entity acting 

5 on behalf of or under the authority of a State, 

6 local government, or nongovernmental entity 

7 that receives funds under this subtitle, to the 

8 extent that such records or other information 

9 are relevant to an audit under subsection (a); 

10 and 

11 ‘‘(C) the officers, directors, employees, fi12 nancial advisors, staff, working groups, and 

13 agents and representatives of any State, local 

14 government, or nongovernmental entity that re15 ceives funds under this subtitle (as related to 

16 the activities on behalf of such State, local gov17 ernment, or nongovernmental entity of such 

18 agent or representative), at such reasonable 

19 times as the Comptroller General may request 

20 and to the extent that such officers, directors, 

21 employees, financial advisors, staff, working 

22 groups, and agents and representatives possess 

23 information that is relevant to an audit under 

24 subsection (a). 


emcdonald on DSK67QTVN1PROD with BILLS
36 

•S 1089 IS

1 ‘‘(2) COPIES.—The Comptroller General may 

2 make and retain copies of such books, accounts, and 

3 other records, access to which is granted under this 

4 section, as the Comptroller General considers appro5 priate. 

6 ‘‘SEC. 2061. DEFINITIONS. 

7 ‘‘In this subtitle: 

8 ‘‘(1) AGENCY.—The term ‘agency’ has the 

9 meaning given that term in section 551 of title 5, 

10 United States Code. 

11 ‘‘(2) INTERVENTION.—The term ‘intervention’ 

12 means a specific service delivered to achieve an im13 pact through a social impact partnership project. 

14 ‘‘(3) SECRETARY.—The term ‘Secretary’ means 

15 the Secretary of the Treasury. 

16 ‘‘(4) SOCIAL IMPACT PARTNERSHIP PROJECT.— 

17 The term ‘social impact partnership project’ means 

18 a project that finances social services using a social 

19 impact partnership model. 

20 ‘‘(5) SOCIAL IMPACT PARTNERSHIP MODEL.— 

21 The term ‘social impact partnership model’ means a 

22 method of financing social services in which— 

23 ‘‘(A) Federal funds are awarded to a State 

24 or local government only if a State or local gov25 ernment achieves certain outcomes agreed upon 


emcdonald on DSK67QTVN1PROD with BILLS
37 

•S 1089 IS

1 by the State or local government and the Sec2 retary; and 

3 ‘‘(B) the State or local government coordi4 nates with service providers, investors (if appli5 cable to the project), and (if necessary) an 

6 intermediary to identify— 

7 ‘‘(i) an intervention expected to 

8 produce the outcome; 

9 ‘‘(ii) a service provider to deliver the 

10 intervention to the target population; and 

11 ‘‘(iii) investors to fund the delivery of 

12 the intervention. 

13 ‘‘(6) STATE.—The term ‘State’ means each 

14 State of the United States, the District of Columbia, 

15 each commonwealth, territory or possession of the 

16 United States, and each federally recognized Indian 

17 tribe.’’. 

18 SEC. 3. COMMUNITY REINVESTMENT ACT. 

19 Section 804 of the Community Reinvestment Act of 

20 1977 (12 U.S.C. 2903) is amended by adding at the end 

21 the following: 

22 ‘‘(e) SOCIAL IMPACT PARTNERSHIP PROJECTS.—In 

23 assessing and taking into account, under subsection (a), 

24 the record of a financial institution, the appropriate Fed25 eral financial supervisory agency shall consider, as a facVerDate Sep 11 2014 23:37 May 06, 2015 Jkt 049200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 E:\BILLS\S1089.IS S1089

emcdonald on DSK67QTVN1PROD with BILLS
38 

•S 1089 IS

1 tor, investments made by the financial institution in social 

2 impact partnership projects under subtitle C of title XX 

3 of the Social Security Act.’’. 

Æ 


emcdonald on DSK67QTVN1PROD with BILLS