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[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 1089 Introduced in Senate (IS)]

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.

    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 Partnership Act''.

SEC. 2. SOCIAL IMPACT PARTNERSHIPS.

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

                ``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 and other private 
        resources with existing public spending to scale up effective 
        social interventions already being implemented by private 
        organizations, non-profits, charitable organizations, and local 
        governments across the country.
            ``(6) To bring pay-for-performance to the social services 
        sector, allowing the United States to improve the impact and 
        effectiveness of vital social services programs while 
        redirecting inefficient or duplicative spending.

``SEC. 2052. SOCIAL IMPACT PARTNERSHIP APPLICATION.

    ``(a) Notice.--Not later than 1 year after the date of the 
enactment of this subtitle, the Secretary of the Treasury (referred to 
in this subtitle as the `Secretary'), in consultation with the Federal 
Interagency Council on Social Impact Partnerships (established by 
section 2056), 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 a measurable, clearly defined outcome that results 
in social benefit and Federal savings through any of the following:
            ``(1) Increasing work and earnings by individuals who have 
        been unemployed in the United States for more than 6 
        consecutive months.
            ``(2) Increasing employment and earnings of individuals age 
        16 to 24.
            ``(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 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 2-
        parent families.
            ``(10) Reducing incidences of child abuse and neglect.
            ``(11) Reducing the number of youth in foster care by 
        increasing adoptions, permanent guardianship arrangements, 
        reunification, or placement with a fit and willing relative.
            ``(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 recidivism among individuals released from 
        prison.
            ``(14) Improving the housing security of individuals 
        experiencing homelessness or at imminent risk of becoming 
        homeless.
            ``(15) Other measurable outcomes defined by the State or 
        local government that result in positive social outcomes and 
        Federal savings.
    ``(c) Feasibility Study Required.--The notice described in 
subsection (a) shall require a State or local government to submit a 
feasibility study for the social impact partnership project that 
contains the following information:
            ``(1) The outcome goals of the project.
            ``(2) A description of each intervention in the project and 
        anticipated outcome of such 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 prepared by 
        the State or local government of the savings to the Federal, 
        State, and local government, on a program-by-program basis and 
        in the aggregate, if the project is implemented and the 
        outcomes are achieved.
            ``(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.
            ``(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 
        delivering the proposed intervention or a similar intervention, 
        or a summary demonstrating that 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 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 to determine whether 
        the outcomes have been achieved and how such metrics will be 
        measured.
            ``(21) An explanation of how the metrics used to determine 
        whether the outcomes have been achieved are independent, 
        objective indicators of impact and are not subject to 
        manipulation by the service provider 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) 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.
    ``(d) Project Intermediary Information Required.--The feasibility 
study described in subsection (c) shall also contain the following 
information about the intermediary for the social impact partnership 
project (whether the intermediary is the 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
                    ``(B) experience with 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.

``SEC. 2053. AWARDING CONTRACTS FOR SOCIAL IMPACT PARTNERSHIP PROJECTS.

    ``(a) Timeline in Awarding Contract.--Not later than 6 months after 
receiving an application in accordance with section 2052, the Secretary 
shall determine whether to enter into a contract for a social impact 
partnership project with the State or local government that submitted 
such application.
    ``(b) Considerations in Awarding Contract.--In determining whether 
to enter into a contract for a social impact partnership project with a 
State or local government, 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 consider each 
of the following:
            ``(1) The value to the Federal Government of the outcome 
        expected to be achieved if the outcomes specified in the 
        contract are achieved.
            ``(2) The ability of the State or local government, in 
        collaboration with the intermediary and the service providers, 
        to achieve the outcomes.
            ``(3) The savings to the Federal Government if the outcomes 
        specified in contract are achieved.
            ``(4) The savings to the State and local governments if the 
        outcomes specified in the contract are achieved.
            ``(5) The expected quality of the evaluation that would be 
        conducted with respect to the contract.
    ``(c) Contract Authority.--
            ``(1) Contract requirements.--In accordance with this 
        section, 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 a contract for a social impact partnership project 
        with a State or local government if the Secretary determines 
        that each of the following requirements are met:
                    ``(A) The State or local government agrees to 
                achieve an outcome specified in the contract in order 
                to receive payment.
                    ``(B) The Federal payment to the State or local 
                government for each outcome specified does not exceed 
                the monetary 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 contract.
                    ``(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 contract and 
        achieved an outcome specified in the contract.
            ``(3) Limitation.--The Secretary shall 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 
        the enactment of this subtitle and shall not obligate any funds 
        made available under section 2057(a) after such date.
    ``(d) Notice of Contract Award.--Not later than 30 days after 
entering into a contract under this section, the Secretary shall 
publish a notice in the Federal Register that includes, with regard to 
such contract, 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 to determine whether 
        the outcomes have been achieved and how these metrics will be 
        measured.
            ``(12) The estimate prepared by the State or local 
        government of the savings to the Federal, State, and local 
        government, on a program-by-program basis and in the aggregate, 
        if the contract is entered into and implemented and the 
        outcomes are achieved.

``SEC. 2054. FEASIBILITY STUDY FUNDING.

    ``(a) Requests for Funding for Feasibility Studies.--The Secretary 
shall reserve a portion of the funding provided in section 2057 to 
assist States or local governments in developing feasibility studies 
required by 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 containing the 
following information:
            ``(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 such 
        intervention will produce the desired outcome.
            ``(4) The expected social benefits to participants who 
        receive the intervention and others who may be impacted.
            ``(5) Estimated costs to conduct the project.
            ``(6) Estimates of Federal, State, and local government 
        savings and other savings if the project is implemented and the 
        outcomes are achieved.
            ``(7) An estimated timeline for implementation and 
        completion of the project, which shall not exceed 10 years.
            ``(8) 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 such 
        partnerships.
            ``(9) 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 likelihood that the proposal will achieve the 
        desired outcome.
            ``(2) The value of the outcome expected to be achieved.
            ``(3) The potential savings to the Federal Government if 
        the social impact partnership project is successful.
            ``(4) 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 publish on the website of the Federal 
Interagency Council on Social Impact Partnerships information 
explaining why the State or local government was granted feasibility 
study funding.
    ``(d) Funding Restrictions; No Guarantee of Funding.--
            ``(1) Feasibility study restriction.--The Secretary shall 
        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 amount 
        appropriated under section 2057, the Secretary shall 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 6 
months after the receipt of feasibility study funding under this 
section, a State or local government receiving such funding shall 
complete the feasibility study and submit the study to the Federal 
Interagency Council on Social Impact Partnerships.

``SEC. 2055. EVALUATIONS.

    ``(a) Contract Authority.--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 determined by 
the Federal Interagency Council on Social Impact Partnerships, shall 
enter into a contract with such State or local government to pay for 
the independent evaluation to determine whether the State or local 
government project has met an outcome specified in the contract 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 a contract with a State or local government under 
subsection (a) unless the head determines that the evaluator is 
independent of the other parties to the contract 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.--
            ``(1) In general.--Subject to paragraph (2), the evaluation 
        used to determine whether a State or local government will 
        receive outcome payments under this subtitle shall, to the 
        extent practicable, use methodologies based on experimental 
        designs using random assignment, or, when random assignment is 
        not feasible or appropriate, other reliable, evidence-based 
        research methodologies, as certified by the Federal Interagency 
        Council on Social Impact Partnerships, that allow for the 
        strongest possible direct, causal inferences.
            ``(2) Limitation.--In determining whether an outcome has 
        been achieved, the evaluation methodology selected under 
        paragraph (1) shall not consider indirect potential savings to 
        the Federal Government that may be realized from increased 
        income, employment, output, or other economic measures derived 
        from multiplier effects external to the outcome metrics upon 
        which contract payments are based.
            ``(3) Application of executive order 13563.--Executive 
        Order 13563 (76 Fed. Reg. 3821; relating to regulatory review) 
        shall not apply to the development and selection of 
        methodologies under this subsection.
    ``(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 
                contract; and
                    ``(B) at the scheduled time of the first outcome 
                payment and at the 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 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 such report to 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 contract with regard to each 
                outcome specified in the contract; 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 contract, 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 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 such report to each committee of jurisdiction in the 
        House of Representatives and the Senate.
    ``(f) Limitation on Cost of Evaluations.--Of the amount made 
available for social impact partnership projects in section 2057, the 
Secretary may not obligate more than 15 percent of such amount to 
evaluate the implementation and outcomes of such projects.

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

    ``(a) Establishment; Duties.--There is established the Federal 
Interagency Council on Social Impact Partnerships (in this section, 
referred to as the `Council'). The duties of the Council shall be to--
            ``(1) coordinate the efforts of social impact partnership 
        projects funded by this subtitle;
            ``(2) advise and assist the Secretary in the development 
        and implementation of such projects;
            ``(3) advise the Secretary on specific programmatic and 
        policy matter related to such projects;
            ``(4) provide subject-matter expertise to the Secretary 
        with regard to such projects;
            ``(5) ensure that each State or local government that has 
        entered into a contract 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) provide guidance to the executive branch on the 
        future of social impact partnership projects in the United 
        States;
            ``(7) review State and local government applications for 
        social impact partnership projects to ensure that contracts 
        will only be awarded under this subtitle when rigorous, 
        independent data and reliable, evidence-based research 
        methodologies support the conclusion that a contract will yield 
        savings to the Federal Government that are equal to or greater 
        than the size of the outlay through the contract before such 
        applications are approved by the Secretary;
            ``(8) certify, in the case of each approved social impact 
        partnership project, that the project will yield a projected 
        savings to the Federal Government, 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
            ``(9) provide oversight of the actions of the Secretary and 
        other Federal officials under this subtitle, and report 
        periodically to Congress and the public on the implementation 
        of this subtitle.
    ``(b) Composition of Council.--
            ``(1) Presidential appointees.--The President of the United 
        States shall select 3 members of the Council, at least 1 of 
        whom shall be an official of the Department of the Treasury and 
        at least 1 of whom shall not be an employee of the Federal 
        Government. The President shall designate 1 of these 3 members 
        as the Chair of the Council. The Chair shall serve for a term 
        of 7 years, and the other members selected by the President 
        shall serve terms of 4 and 6 years. The President shall 
        determine which member serves 4 years and which serves 6 years.
            ``(2) Additional appointees.--In addition to the 3 members 
        appointed under paragraph (1), the Council shall be further 
        composed of the following 8 members:
                    ``(A) 1 member selected by the President of the 
                United States from a list of candidates provided by the 
                Majority Leader of the Senate;
                    ``(B) 1 member selected by the President from a 
                list of candidates provided by the Minority Leader of 
                the Senate;
                    ``(C) 1 member selected by the President from a 
                list of candidates provided by the Speaker of the House 
                of Representatives;
                    ``(D) 1 member selected by the President from a 
                list of candidates provided by the Minority Leader of 
                the House of Representatives;
                    ``(E) 1 member selected by the President from a 
                list of candidates provided by the Chairman of the 
                Committee on Finance of the Senate;
                    ``(F) 1 member selected by the President from a 
                list of candidates provided by the Ranking Member of 
                the Committee on Finance of the Senate;
                    ``(G) 1 member selected by the President from a 
                list of candidates provided by the Chairman of the 
                Committee on Ways and Means of the House of 
                Representatives; and
                    ``(H) 1 member selected by the President from a 
                list of candidates provided by the Ranking Member of 
                the Committee on Ways and Means of the House of 
                Representatives.
            ``(3) Qualifications.--The membership of the Council shall 
        consist of individuals who--
                    ``(A) are experienced in finance, economics, pay 
                for performance finance or statistics;
                    ``(B) have relevant professional or personal 
                experience in a field related to 1 or more of the 
                outcomes listed in section 2052(b); and
                    ``(C) are 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.
            ``(4) Timing of appointments.--
                    ``(A) Candidate lists.--With respect to the 
                candidate lists described in paragraph (2), the 
                designated member of Congress shall provide a list of 
                candidates to the President not later than 90 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 upon which the vacancy arises. If a member of 
                Congress fails to provide a list of candidates to the 
                President by such date, the President may select a 
                member of the President's choice on behalf of such 
                member of Congress.
                    ``(B) Appointment date.--All appointments of the 
                members of the Council shall be made not later than 120 
                days after the date of the enactment of this subtitle. 
                Notwithstanding the preceding sentence, if not all 
                appointments have been made to the Council as of such 
                date, the Council may operate with fewer than all 11 
                members until all appointments have been made.
            ``(5) Term of appointments.--
                    ``(A) In general.--The members appointed under 
                paragraph (2) shall serve as follows:
                            ``(i) 2 members shall serve for 3 years.
                            ``(ii) 2 members shall serve for 4 years.
                            ``(iii) 2 members shall serve for 5 years.
                            ``(iv) 2 members shall serve for 6 years.
                    ``(B) Assignment of terms.--The Council shall 
                designate the term length that each member appointed 
                under paragraph (2) shall serve by unanimous agreement. 
                In the event that unanimous agreement cannot be 
                reached, term lengths shall be assigned to such members 
                by a random process.
            ``(6) Vacancies.--
                    ``(A) In general.--Subject to subparagraph (B), in 
                the event of a vacancy in the Council, whether due to 
                the resignation of a member, the expiration of a 
                member's term, or any other reason, such vacancy shall 
                be filled in the manner in which the original 
                appointment was made and shall not affect the powers of 
                the Council.
                    ``(B) Political party balance rule.--If the member 
                of Congress required to provide a list of candidates 
                under paragraph (2) to fill a vacancy in a position in 
                accordance with this paragraph is not of the same 
                political party as the member of Congress providing the 
                list of candidates for the original appointment to such 
                position, the list of candidates to fill such vacancy 
                shall be provided instead by the member of the other 
                political party occupying the corresponding position in 
                the House of Congress or congressional committee 
                concerned.
            ``(7) Appointment power.--Members of the Council appointed 
        under this section shall not be subject to confirmation by the 
        Senate.
    ``(c) Rules of the Council.--
            ``(1) Charter.--The Council shall file a charter that meets 
        the requirements of section 9(c) of the Federal Advisory 
        Committee Act (5 U.S.C. App.) with the Secretary. Such charter 
        shall be published on the website the Council is required to 
        establish under section 2058.
            ``(2) Council procedures.--Section 10 of the Federal 
        Advisory Committee Act (5 U.S.C. App.), other than subsections 
        (e) and (f), shall apply to the Council.
            ``(3) Transcripts.--Section 11 of the Federal Advisory 
        Committee Act (5 U.S.C. App.) shall apply to the Council.
            ``(4) Compensation.--Members of the Council--
                    ``(A) shall not receive compensation for service on 
                the Council; and
                    ``(B) shall be allowed travel expenses, including 
                per diem in lieu of subsistence, at rates authorized 
                for employees of agencies under subchapter I of chapter 
                57 of title 5, United States Code, while away from 
                their homes or regular places of business in the 
                performance of service for the Council.
    ``(d) Agency Liaisons.--The Council shall liaise, as needed, with 
officers or employees of each Federal agency that becomes involved with 
the social impact partnership selection and obligation process who are 
designated by the head of the agency to serve as liaison to the 
Council.
    ``(e) Rule of Construction.--Nothing in this section shall give the 
Council the authority to abrogate a contract entered into by the 
Secretary under section 2053, or any payment associated with such 
contract that is payable under such section.

``SEC. 2057. FUNDING.

    ``(a) In General.--Out of any money in the Treasury not otherwise 
appropriated, there is hereby appropriated $300,000,000 to remain 
available until 10 years after the date specified in section 2053(c)(3) 
to carry out the activities authorized under this subtitle. Amounts 
appropriated under this subsection that are unobligated as of such date 
shall be rescinded on such date, except that the Secretary may retain 
an amount not to exceed $6,000,000 for an additional 3 years for 
purposes of carrying out functions necessary to administer contracts 
that were awarded under this subtitle prior to such date.
    ``(b) Limitation.--Of the amounts made available under subsection 
(a), the Secretary shall not use more than $30,000,000 to support the 
review, approval, and oversight of social impact partnership projects 
(and shall not use more than $15,000,000 for such purposes during the 
period of the fiscal year in which the Secretary publishes the request 
for proposals required under section 2052(a) and the subsequent 2 
fiscal years), including activities conducted by--
            ``(1) the Federal Interagency Council on Social Impact 
        Partnerships; and
            ``(2) any other agency consulted by the Secretary before 
        approving a social impact partnership project or a feasibility 
        study under section 2054.

``SEC. 2058. 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) For each State or local government that has entered 
        into a contract 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.
            ``(3) A copy of the progress reports and the final reports 
        relating to each social impact partnership project.
            ``(4) 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.
            ``(5) A copy of the Council's charter.

``SEC. 2059. 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. 2060. GAO AUDITS.

    ``(a) Authority To Audit.--The Comptroller General of the United 
States may audit the activities of any State, local government, or 
nongovernmental entity that receives funds under this subtitle to the 
extent that such activities are relevant to the operation of a social 
impact partnership project under this subtitle.
    ``(b) Access to Information.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, the Comptroller General shall, upon request and at such 
        reasonable time and in such reasonable form as the Comptroller 
        General may request, have access to--
                    ``(A) any records or other information under the 
                control of or used by any State, local government, or 
                nongovernmental entity that receives funds under this 
                subtitle, to the extent that such records or other 
                information are relevant to an audit under subsection 
                (a);
                    ``(B) any records or other information under the 
                control of a person or entity acting on behalf of or 
                under the authority of a State, local government, or 
                nongovernmental entity that receives funds under this 
                subtitle, to the extent that such records or other 
                information are relevant to an audit under subsection 
                (a); and
                    ``(C) the officers, directors, employees, financial 
                advisors, staff, working groups, and agents and 
                representatives of any State, local government, or 
                nongovernmental entity that receives funds under this 
                subtitle (as related to the activities on behalf of 
                such State, local government, or nongovernmental entity 
                of such agent or representative), at such reasonable 
                times as the Comptroller General may request and to the 
                extent that such officers, directors, employees, 
                financial advisors, staff, working groups, and agents 
                and representatives possess information that is 
                relevant to an audit under subsection (a).
            ``(2) Copies.--The Comptroller General may make and retain 
        copies of such books, accounts, and other records, access to 
        which is granted under this section, as the Comptroller General 
        considers appropriate.

``SEC. 2061. 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 upon 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.''.

SEC. 3. COMMUNITY REINVESTMENT ACT.

    Section 804 of the Community Reinvestment Act of 1977 (12 U.S.C. 
2903) is amended by adding at the end the following:
    ``(e) Social Impact Partnership Projects.--In assessing and taking 
into account, under subsection (a), the record of a financial 
institution, the appropriate Federal financial supervisory agency shall 
consider, as a factor, investments made by the financial institution in 
social impact partnership projects under subtitle C of title XX of the 
Social Security Act.''.
                                 <all>
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