IB 

Union Calendar No. 479 

114TH CONGRESS 

2D SESSION H. R. 5170 

[Report No. 114–616] 

To encourage and support partnerships between the public and private sectors 

to improve our Nation’s social programs, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 6, 2016 

Mr. YOUNG of Indiana (for himself and Mr. DELANEY) introduced the 

following bill; which was referred to the Committee on Ways and Means 

JUNE 10, 2016 

Additional sponsors: Mr. DOLD, Mr. LARSON of Connecticut, Mr. REED, Mr. 

BLUMENAUER, Mr. PAULSEN, Mr. MEEHAN, Mrs. BLACK, Mr. POLIS, 

Mr. BOUSTANY, Mr. BARR, Mr. BISHOP of Georgia, Mr. LANGEVIN, Ms. 

KUSTER, Mr. PASCRELL, Mr. QUIGLEY, Mr. TIBERI, Ms. MCSALLY, Mr. 

KATKO, Mr. ASHFORD, Mr. KINZINGER of Illinois, Mr. CARNEY, Mrs. 

WALORSKI, Mr. FITZPATRICK, Mr. MACARTHUR, and Mrs. BROOKS of 

Indiana 

JUNE 10, 2016 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on May 6, 2016] 


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A BILL 

To encourage and support partnerships between the public 

and private sectors to improve our Nation’s social programs, and for other purposes. 


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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 ships to Pay for Results Act’’. 

6 SEC. 2. SOCIAL IMPACT PARTNERSHIPS TO PAY FOR RE7 SULTS. 

8 Section 403 of the Social Security Act (42 U.S.C. 603) 

9 is amended by adding at the end the following: 

10 ‘‘(c) SOCIAL IMPACT DEMONSTRATION PROJECTS.— 

11 ‘‘(1) PURPOSES.—The purposes of this subsection 

12 are the following: 

13 ‘‘(A) To improve the lives of families and 

14 individuals in need in the United States by 

15 funding social programs that achieve real results. 

16 ‘‘(B) To redirect funds away from programs 

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

18 into programs that achieve demonstrable, meas19 urable results. 

20 ‘‘(C) To ensure Federal funds are used effec21 tively on social services to produce positive out22 comes for both service recipients and taxpayers. 

23 ‘‘(D) To establish the use of social impact 

24 partnerships to address some of our Nation’s 

25 most pressing problems. 


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1 ‘‘(E) To facilitate the creation of public-pri2 vate partnerships that bundle philanthropic or 

3 other private resources with existing public 

4 spending to scale up effective social interventions 

5 already being implemented by private organiza6 tions, non-profits, charitable organizations, and 

7 State and local governments across the country. 

8 ‘‘(F) To bring pay-for-performance to the 

9 social sector, allowing the United States to im10 prove the impact and effectiveness of vital social 

11 services programs while redirecting inefficient or 

12 duplicative spending. 

13 ‘‘(G) To incorporate outcomes measurement 

14 and randomized controlled trials or other rig15 orous methodologies for assessing program im16 pact. 

17 ‘‘(2) SOCIAL IMPACT PARTNERSHIP APPLICA18 TION.— 

19 ‘‘(A) NOTICE.—Not later than 1 year after 

20 the date of the enactment of this subsection, the 

21 Secretary of the Treasury, in consultation with 

22 the Federal Interagency Council on Social Im23 pact Partnerships, shall publish in the Federal 

24 Register a request for proposals from States or 


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1 local government for social impact partnership 

2 projects in accordance with this paragraph. 

3 ‘‘(B) REQUIRED OUTCOMES FOR SOCIAL IM4 PACT PARTNERSHIP PROJECT.—To qualify as a 

5 social impact partnership project under this sub6 section, a project must produce 1 or more meas7 urable, clearly defined outcomes that result in so8 cial benefit and Federal savings through any of 

9 the following: 

10 ‘‘(i) Increasing work and earnings by 

11 individuals who have been unemployed in 

12 the United States for more than 6 consecu13 tive months. 

14 ‘‘(ii) Increasing employment and earn15 ings of individuals who have attained 16 

16 years of age but not 25 years of age. 

17 ‘‘(iii) Increasing employment among 

18 individuals receiving Federal disability ben19 efits. 

20 ‘‘(iv) Reducing the dependence of low21 income families on Federal means-tested 

22 benefits. 

23 ‘‘(v) Improving rates of high school 

24 graduation. 


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1 ‘‘(vi) Reducing teen and unplanned 

2 pregnancies. 

3 ‘‘(vii) Improving birth outcomes and 

4 early childhood health and development 

5 among low-income families and individuals. 

6 ‘‘(viii) Reducing rates of asthma, dia7 betes, or other preventable diseases among 

8 low-income families and individuals to re9 duce the utilization of emergency and other 

10 high-cost care. 

11 ‘‘(ix) Increasing the proportion of chil12 dren living in 2-parent families. 

13 ‘‘(x) Reducing incidences and adverse 

14 consequences of child abuse and neglect. 

15 ‘‘(xi) Reducing the number of youth in 

16 foster care by increasing adoptions, perma17 nent guardianship arrangements, reunifica18 tion, or placement with a fit and willing 

19 relative, or by avoiding placing children in 

20 foster care by ensuring they can be cared for 

21 safely in their own homes. 

22 ‘‘(xii) Reducing the number of children 

23 and youth in foster care residing in group 

24 homes, child care institutions, agency-oper25 ated foster homes, or other non-family foster 


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1 homes, unless it is determined that it is in 

2 the interest of the child’s long-term health, 

3 safety, or psychological well-being to not be 

4 placed in a family foster home. 

5 ‘‘(xiii) Reducing the number of chil6 dren returning to foster care. 

7 ‘‘(xiv) Reducing recidivism among ju8 veniles, individuals released from prison, or 

9 other high-risk populations. 

10 ‘‘(xv) Reducing the rate of homelessness 

11 among our most vulnerable populations. 

12 ‘‘(xvi) Improving the health and well13 being of those with mental, emotional, and 

14 behavioral health needs. 

15 ‘‘(xvii) Improving the educational out16 comes of special-needs or low-income chil17 dren. 

18 ‘‘(xviii) Improving the employment 

19 and well-being of returning United States 

20 military members. 

21 ‘‘(xix) Increasing the financial sta22 bility of low-income families. 

23 ‘‘(xx) Increasing the independence and 

24 employability of individuals who are phys25 ically or mentally disabled. 


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1 ‘‘(xxi) Other measurable outcomes de2 fined by the State or local government that 

3 result in positive social outcomes and Fed4 eral savings. 

5 ‘‘(C) APPLICATION REQUIRED.—The notice 

6 described in subparagraph (A) shall require a 

7 State or local government to submit an applica8 tion for the social impact partnership project 

9 that addresses the following: 

10 ‘‘(i) The outcome goals of the project. 

11 ‘‘(ii) A description of each intervention 

12 in the project and anticipated outcomes of 

13 the intervention. 

14 ‘‘(iii) Rigorous evidence demonstrating 

15 that the intervention can be expected to 

16 produce the desired outcomes. 

17 ‘‘(iv) The target population that will 

18 be served by the project. 

19 ‘‘(v) The expected social benefits to 

20 participants who receive the intervention 

21 and others who may be impacted. 

22 ‘‘(vi) Projected Federal, State, and 

23 local government costs and other costs to 

24 conduct the project. 


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1 ‘‘(vii) Projected Federal, State, and 

2 local government savings and other savings, 

3 including an estimate of the savings to the 

4 Federal Government, on a program-by-pro5 gram basis and in the aggregate, if the 

6 project is implemented and the outcomes are 

7 achieved. 

8 ‘‘(viii) If savings resulting from the 

9 successful completion of the project are esti10 mated to accrue to the State or local govern11 ment, the likelihood of the State or local 

12 government to realize those savings. 

13 ‘‘(ix) A plan for delivering the inter14 vention through a social impact partnership 

15 model. 

16 ‘‘(x) A description of the expertise of 

17 each service provider that will administer 

18 the intervention, including a summary of 

19 the experience of the service provider in de20 livering the proposed intervention or a 

21 similar intervention, or demonstrating that 

22 the service provider has the expertise nec23 essary to deliver the proposed intervention. 

24 ‘‘(xi) An explanation of the experience 

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1 mediary, or the service provider in raising 

2 private and philanthropic capital to fund 

3 social service investments. 

4 ‘‘(xii) The detailed roles and respon5 sibilities of each entity involved in the 

6 project, including any State or local govern7 ment entity, intermediary, service provider, 

8 independent evaluator, investor, or other 

9 stakeholder. 

10 ‘‘(xiii) A summary of the experience of 

11 the service provider delivering the proposed 

12 intervention or a similar intervention, or a 

13 summary demonstrating the service pro14 vider has the expertise necessary to deliver 

15 the proposed intervention. 

16 ‘‘(xiv) A summary of the unmet need 

17 in the area where the intervention will be 

18 delivered or among the target population 

19 who will receive the intervention. 

20 ‘‘(xv) The proposed payment terms, the 

21 methodology used to calculate outcome pay22 ments, the payment schedule, and perform23 ance thresholds. 

24 ‘‘(xvi) The project budget. 

25 ‘‘(xvii) The project timeline. 


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1 ‘‘(xviii) The criteria used to determine 

2 the eligibility of an individual for the 

3 project, including how selected populations 

4 will be identified, how they will be referred 

5 to the project, and how they will be enrolled 

6 in the project. 

7 ‘‘(xix) The evaluation design. 

8 ‘‘(xx) The metrics that will be used to 

9 determine whether the outcomes have been 

10 achieved and how the metrics will be meas11 ured. 

12 ‘‘(xxi) An explanation of how the 

13 metrics used to determine whether the out14 comes have been achieved are independent, 

15 objective indicators of impact and are not 

16 subject to manipulation by the service pro17 vider, intermediary, or investor. 

18 ‘‘(xxii) A summary explaining the 

19 independence of the evaluator from the other 

20 entities involved in the project and the eval21 uator’s experience in conducting rigorous 

22 evaluations of program effectiveness includ23 ing, where available, well-implemented ran24 domized controlled trials on the intervention 

25 or similar interventions. 


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1 ‘‘(xxiii) The capacity of the service 

2 provider to deliver the intervention to the 

3 number of participants the State or local 

4 government proposes to serve in the project. 

5 ‘‘(D) PROJECT INTERMEDIARY INFORMATION

6 REQUIRED.—The application described in sub7 paragraph (C) shall also contain the following 

8 information about any intermediary for the so9 cial impact partnership project (whether an 

10 intermediary is a service provider or other enti11 ty): 

12 ‘‘(i) Experience and capacity for pro13 viding or facilitating the provision of the 

14 type of intervention proposed. 

15 ‘‘(ii) The mission and goals. 

16 ‘‘(iii) Information on whether the 

17 intermediary is already working with serv18 ice providers that provide this intervention 

19 or an explanation of the capacity of the 

20 intermediary to begin working with service 

21 providers to provide the intervention. 

22 ‘‘(iv) Experience working in a collabo23 rative environment across government and 

24 nongovernmental entities. 


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1 ‘‘(v) Previous experience collaborating 

2 with public or private entities to implement 

3 evidence-based programs. 

4 ‘‘(vi) Ability to raise or provide fund5 ing to cover operating costs (if applicable to 

6 the project). 

7 ‘‘(vii) Capacity and infrastructure to 

8 track outcomes and measure results, includ9 ing— 

10 ‘‘(I) capacity to track and analyze 

11 program performance and assess pro12 gram impact; and 

13 ‘‘(II) experience with perform14 ance-based awards or performance15 based contracting and achieving 

16 project milestones and targets. 

17 ‘‘(viii) Role in delivering the interven18 tion. 

19 ‘‘(ix) How the intermediary would 

20 monitor program success, including a de21 scription of the interim benchmarks and 

22 outcome measures. 

23 ‘‘(E) FEASIBILITY STUDIES FUNDED

24 THROUGH OTHER SOURCES.—The notice de25 scribed in subparagraph (A) shall permit a State 


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1 or local government to submit an application for 

2 social impact partnership funding that contains 

3 information from a feasibility study developed 

4 for purposes other than applying for funding 

5 under this subsection. 

6 ‘‘(3) AWARDING SOCIAL IMPACT PARTNERSHIP

7 AGREEMENTS.— 

8 ‘‘(A) TIMELINE IN AWARDING AGREE9 MENT.—Not later than 6 months after receiving 

10 an application in accordance with paragraph 

11 (2), the Secretary, in consultation with the Fed12 eral Interagency Council on Social Impact Part13 nerships, shall determine whether to enter into 

14 an agreement for a social impact partnership 

15 project with a State or local government. 

16 ‘‘(B) CONSIDERATIONS IN AWARDING

17 AGREEMENT.—In determining whether to enter 

18 into an agreement for a social impact partner19 ship project (the application for which was sub20 mitted under paragraph (2)) the Secretary, in 

21 consultation with the Federal Interagency Coun22 cil on Social Impact Partnerships (established by 

23 paragraph (6)) and the head of any Federal 

24 agency administering a similar intervention or 


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1 serving a population similar to that served by 

2 the project, shall consider each of the following: 

3 ‘‘(i) The recommendations made by the 

4 Commission on Social Impact Partnerships. 

5 ‘‘(ii) The value to the Federal Govern6 ment of the outcomes expected to be achieved 

7 if the outcomes specified in the agreement 

8 are achieved. 

9 ‘‘(iii) The likelihood, based on evidence 

10 provided in the application and other evi11 dence, that the State or local government in 

12 collaboration with the intermediary and the 

13 service providers will achieve the outcomes. 

14 ‘‘(iv) The savings to the Federal Gov15 ernment if the outcomes specified in the 

16 agreement are achieved. 

17 ‘‘(v) The savings to the State and local 

18 governments if the outcomes specified in the 

19 agreement are achieved. 

20 ‘‘(vi) The expected quality of the eval21 uation that would be conducted with respect 

22 to the agreement. 

23 ‘‘(C) AGREEMENT AUTHORITY.— 

24 ‘‘(i) AGREEMENT REQUIREMENTS.—In 

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1 retary, in consultation with the Federal 

2 Interagency Council on Social Impact Part3 nerships and the head of any Federal agen4 cy administering a similar intervention or 

5 serving a population similar to that served 

6 by the project, may enter into an agreement 

7 for a social impact partnership project with 

8 a State or local government if the Secretary, 

9 in consultation with the Federal Inter10 agency Council on Social Impact Partner11 ships, determines that each of the following 

12 requirements are met: 

13 ‘‘(I) The State or local govern14 ment agrees to achieve 1 or more out15 comes specified in the agreement in 

16 order to receive payment. 

17 ‘‘(II) The Federal payment to the 

18 State or local government for each out19 come specified is less than or equal to 

20 the value of the outcome to the Federal 

21 Government over a period not to exceed 

22 10 years, as determined by the Sec23 retary, in consultation with the State 

24 or local government. 


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1 ‘‘(III) The duration of the project 

2 does not exceed 10 years. 

3 ‘‘(IV) The State or local govern4 ment has demonstrated, through the 

5 application submitted under para6 graph (2), that, based on prior rig7 orous experimental evaluations or rig8 orous quasi-experimental studies, the 

9 intervention can be expected to achieve 

10 each outcome specified in the agree11 ment. 

12 ‘‘(V) The State, local government, 

13 intermediary, or service provider has 

14 experience raising private or philan15 thropic capital to fund social service 

16 investments (if applicable to the 

17 project). 

18 ‘‘(VI) The State or local govern19 ment has shown that each service pro20 vider has experience delivering the 

21 intervention, a similar intervention, or 

22 has otherwise demonstrated the exper23 tise necessary to deliver the interven24 tion. 


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1 ‘‘(ii) PAYMENT.—The Secretary shall 

2 pay the State or local government only if 

3 the independent evaluator described in 

4 paragraph (5) determines that the social 

5 impact partnership project has met the re6 quirements specified in the agreement and 

7 achieved an outcome specified in the agree8 ment. 

9 ‘‘(D) NOTICE OF AGREEMENT AWARD.—Not 

10 later than 30 days after entering into an agree11 ment under this paragraph, the Secretary shall 

12 publish a notice in the Federal Register that in13 cludes, with regard to the agreement, the fol14 lowing: 

15 ‘‘(i) The outcome goals of the social im16 pact partnership project. 

17 ‘‘(ii) A description of each intervention 

18 in the project. 

19 ‘‘(iii) The target population that will 

20 be served by the project. 

21 ‘‘(iv) The expected social benefits to 

22 participants who receive the intervention 

23 and others who may be impacted. 

24 ‘‘(v) The detailed roles, responsibilities, 

25 and purposes of each Federal, State, or local 


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1 government entity, intermediary, service 

2 provider, independent evaluator, investor, 

3 or other stakeholder. 

4 ‘‘(vi) The payment terms, the method5 ology used to calculate outcome payments, 

6 the payment schedule, and performance 

7 thresholds. 

8 ‘‘(vii) The project budget. 

9 ‘‘(viii) The project timeline. 

10 ‘‘(ix) The project eligibility criteria. 

11 ‘‘(x) The evaluation design. 

12 ‘‘(xi) The metrics that will be used to 

13 determine whether the outcomes have been 

14 achieved and how these metrics will be 

15 measured. 

16 ‘‘(xii) The estimate of the savings to 

17 the Federal, State, and local government, on 

18 a program-by-program basis and in the ag19 gregate, if the agreement is entered into and 

20 implemented and the outcomes are achieved. 

21 ‘‘(E) AUTHORITY TO TRANSFER ADMINIS22 TRATION OF AGREEMENT.—The Secretary may 

23 transfer to the head of another Federal agency 

24 the authority to administer (including making 

25 payments under) an agreement entered into 


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1 under subparagraph (C), and any funds nec2 essary to do so. 

3 ‘‘(4) FEASIBILITY STUDY FUNDING.— 

4 ‘‘(A) REQUESTS FOR FUNDING FOR FEASI5 BILITY STUDIES.—The Secretary shall reserve a 

6 portion of the amount reserved to carry out this 

7 subsection to assist States or local governments 

8 in developing feasibility studies to apply for so9 cial impact partnership funding under para10 graph (2). To be eligible to receive funding to as11 sist with completing a feasibility study, a State 

12 or local government shall submit an application 

13 for feasibility study funding addressing the fol14 lowing: 

15 ‘‘(i) A description of the outcome goals 

16 of the social impact partnership project. 

17 ‘‘(ii) A description of the intervention, 

18 including anticipated program design, tar19 get population, an estimate regarding the 

20 number of individuals to be served, and set21 ting for the intervention. 

22 ‘‘(iii) Evidence to support the likeli23 hood that the intervention will produce the 

24 desired outcomes. 


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1 ‘‘(iv) A description of the potential 

2 metrics to be used. 

3 ‘‘(v) The expected social benefits to 

4 participants who receive the intervention 

5 and others who may be impacted. 

6 ‘‘(vi) Estimated costs to conduct the 

7 project. 

8 ‘‘(vii) Estimates of Federal, State, and 

9 local government savings and other savings 

10 if the project is implemented and the out11 comes are achieved. 

12 ‘‘(viii) An estimated timeline for im13 plementation and completion of the project, 

14 which shall not exceed 10 years. 

15 ‘‘(ix) With respect to a project for 

16 which the State or local government selects 

17 an intermediary to operate the project, any 

18 partnerships needed to successfully execute 

19 the project and the ability of the inter20 mediary to foster the partnerships. 

21 ‘‘(x) The expected resources needed to 

22 complete the feasibility study for the State 

23 or local government to apply for social im24 pact partnership funding under paragraph 

25 (2). 


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1 ‘‘(B) FEDERAL SELECTION OF APPLICA2 TIONS FOR FEASIBILITY STUDY.—Not later than 

3 6 months after receiving an application for feasi4 bility study funding under subparagraph (A), 

5 the Secretary, in consultation with the Federal 

6 Interagency Council on Social Impact Partner7 ships and the head of any Federal agency ad8 ministering a similar intervention or serving a 

9 population similar to that served by the project, 

10 shall select State or local government feasibility 

11 study proposals for funding based on the fol12 lowing: 

13 ‘‘(i) The recommendations made by the 

14 Commission on Social Impact Partnerships. 

15 ‘‘(ii) The likelihood that the proposal 

16 will achieve the desired outcomes. 

17 ‘‘(iii) The value of the outcomes ex18 pected to be achieved. 

19 ‘‘(iv) The potential savings to the Fed20 eral Government if the social impact part21 nership project is successful. 

22 ‘‘(v) The potential savings to the State 

23 and local governments if the project is suc24 cessful. 


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1 ‘‘(C) PUBLIC DISCLOSURE.—Not later than 

2 30 days after selecting a State or local govern3 ment for feasibility study funding under this 

4 paragraph, the Secretary shall cause to be pub5 lished on the website of the Federal Interagency 

6 Council on Social Impact Partnerships informa7 tion explaining why a State or local government 

8 was granted feasibility study funding. 

9 ‘‘(D) FUNDING RESTRICTION.— 

10 ‘‘(i) FEASIBILITY STUDY RESTRIC11 TION.—The Secretary may not provide fea12 sibility study funding under this paragraph 

13 for more than 50 percent of the estimated 

14 total cost of the feasibility study reported in 

15 the State or local government application 

16 submitted under subparagraph (A). 

17 ‘‘(ii) AGGREGATE RESTRICTION.—Of 

18 the total amount reserved to carry out this 

19 subsection, the Secretary may not use more 

20 than $10,000,000 to provide feasibility 

21 study funding to States or local govern22 ments under this paragraph. 

23 ‘‘(iii) NO GUARANTEE OF FUNDING.— 

24 The Secretary shall have the option to 

25 award no funding under this paragraph. 


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1 ‘‘(E) SUBMISSION OF FEASIBILITY STUDY

2 REQUIRED.—Not later than 9 months after the 

3 receipt of feasibility study funding under this 

4 paragraph, a State or local government receiving 

5 the funding shall complete the feasibility study 

6 and submit the study to the Federal Interagency 

7 Council on Social Impact Partnerships. 

8 ‘‘(F) DELEGATION OF AUTHORITY.—The 

9 Secretary may transfer to the head of another 

10 Federal agency the authorities provided in this 

11 paragraph and any funds necessary to exercise 

12 the authorities. 

13 ‘‘(5) EVALUATIONS.— 

14 ‘‘(A) AUTHORITY TO ENTER INTO AGREE15 MENTS.—For each State or local government 

16 awarded a social impact partnership project ap17 proved by the Secretary under this subsection, 

18 the head of the relevant agency, as determined by 

19 the Federal Interagency Council on Social Im20 pact Partnerships, shall enter into an agreement 

21 with the State or local government to pay for all 

22 or part of the independent evaluation to deter23 mine whether the State or local government 

24 project has met an outcome specified in the 

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1 ment to receive outcome payments under this 

2 subsection. 

3 ‘‘(B) EVALUATOR QUALIFICATIONS.—The 

4 head of the relevant agency may not enter into 

5 an agreement with a State or local government 

6 unless the head determines that the evaluator is 

7 independent of the other parties to the agreement 

8 and has demonstrated substantial experience in 

9 conducting rigorous evaluations of program effec10 tiveness including, where available and appro11 priate, well-implemented randomized controlled 

12 trials on the intervention or similar interven13 tions. 

14 ‘‘(C) METHODOLOGIES TO BE USED.—The 

15 evaluation used to determine whether a State or 

16 local government will receive outcome payments 

17 under this subsection shall use experimental de18 signs using random assignment or other reliable, 

19 evidence-based research methodologies, as cer20 tified by the Federal Interagency Council on So21 cial Impact Partnerships, that allow for the 

22 strongest possible causal inferences when random 

23 assignment is not feasible. 

24 ‘‘(D) PROGRESS REPORT.— 


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1 ‘‘(i) SUBMISSION OF REPORT.—The 

2 independent evaluator shall— 

3 ‘‘(I) not later than 2 years after a 

4 project has been approved by the Sec5 retary and biannually thereafter until 

6 the project is concluded, submit to the 

7 head of the relevant agency and the 

8 Federal Interagency Council on Social 

9 Impact Partnerships a written report 

10 summarizing the progress that has 

11 been made in achieving each outcome 

12 specified in the agreement; and 

13 ‘‘(II) before the scheduled time of 

14 the first outcome payment and before 

15 the scheduled time of each subsequent 

16 payment, submit to the head of the rel17 evant agency and the Federal Inter18 agency Council on Social Impact Part19 nerships a written report that includes 

20 the results of the evaluation conducted 

21 to determine whether an outcome pay22 ment should be made along with infor23 mation on the unique factors that con24 tributed to achieving or failing to 

25 achieve the outcome, the challenges 


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1 faced in attempting to achieve the out2 come, and information on the im3 proved future delivery of this or simi4 lar interventions. 

5 ‘‘(ii) SUBMISSION TO CONGRESS.—Not 

6 later than 30 days after receipt of the writ7 ten report pursuant to clause (i)(II), the 

8 Federal Interagency Council on Social Im9 pact Partnerships shall submit the report to 

10 each committee of jurisdiction in the House 

11 of Representatives and the Senate. 

12 ‘‘(E) FINAL REPORT.— 

13 ‘‘(i) SUBMISSION OF REPORT.—Within 

14 6 months after the social impact partner15 ship project is completed, the independent 

16 evaluator shall— 

17 ‘‘(I) evaluate the effects of the ac18 tivities undertaken pursuant to the 

19 agreement with regard to each outcome 

20 specified in the agreement; and 

21 ‘‘(II) submit to the head of the rel22 evant agency and the Federal Inter23 agency Council on Social Impact Part24 nerships a written report that includes 

25 the results of the evaluation and the 


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1 conclusion of the evaluator as to wheth2 er the State or local government has 

3 fulfilled each obligation of the agree4 ment, along with information on the 

5 unique factors that contributed to the 

6 success or failure of the project, the 

7 challenges faced in attempting to 

8 achieve the outcome, and information 

9 on the improved future delivery of this 

10 or similar interventions. 

11 ‘‘(ii) SUBMISSION TO CONGRESS.—Not 

12 later than 30 days after receipt of the writ13 ten report pursuant to clause (i)(II), the 

14 Federal Interagency Council on Social Im15 pact Partnerships shall submit the report to 

16 each committee of jurisdiction in the House 

17 of Representatives and the Senate. 

18 ‘‘(F) LIMITATION ON COST OF EVALUA19 TIONS.—Of the amount reserved under this sub20 section for social impact partnership projects, the 

21 Secretary may not obligate more than 15 percent 

22 to evaluate the implementation and outcomes of 

23 the projects. 

24 ‘‘(G) DELEGATION OF AUTHORITY.—The 

25 Secretary may transfer to the head of another 


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1 Federal agency the authorities provided in this 

2 paragraph and any funds necessary to exercise 

3 the authorities. 

4 ‘‘(6) FEDERAL INTERAGENCY COUNCIL ON SOCIAL

5 IMPACT PARTNERSHIPS.— 

6 ‘‘(A) ESTABLISHMENT.—There is estab7 lished the Federal Interagency Council on Social 

8 Impact Partnerships (in this paragraph referred 

9 to as the ‘Council’) to— 

10 ‘‘(i) coordinate the efforts of social im11 pact partnership projects funded under this 

12 subsection; 

13 ‘‘(ii) advise and assist the Secretary in 

14 the development and implementation of the 

15 projects; 

16 ‘‘(iii) advise the Secretary on specific 

17 programmatic and policy matter related to 

18 the projects; 

19 ‘‘(iv) provide subject-matter expertise 

20 to the Secretary with regard to the projects; 

21 ‘‘(v) ensure that each State or local 

22 government that has entered into an agree23 ment with the Secretary for a social impact 

24 partnership project under this subsection 

25 and each evaluator selected by the head of 


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1 the relevant agency under paragraph (5) 

2 has access to Federal administrative data to 

3 assist the State or local government and the 

4 evaluator in evaluating the performance 

5 and outcomes of the project; 

6 ‘‘(vi) address issues that will influence 

7 the future of social impact partnership 

8 projects in the United States; 

9 ‘‘(vii) provide guidance to the executive 

10 branch on the future of social impact part11 nership projects in the United States; 

12 ‘‘(viii) review State and local govern13 ment applications for social impact part14 nerships to ensure that agreements will only 

15 be awarded under this subsection when rig16 orous, independent data and reliable, evi17 dence-based research methodologies support 

18 the conclusion that an agreement will yield 

19 savings to the Federal Government if the 

20 project outcomes are achieved before the ap21 plications are approved by the Secretary; 

22 ‘‘(ix) certify, in the case of each ap23 proved social impact partnership, that the 

24 project will yield a projected savings to the 

25 Federal Government if the project outcomes 


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1 are achieved, and coordinate with the rel2 evant Federal agency to produce an after3 action accounting once the project is com4 plete to determine the actual Federal sav5 ings realized, and the extent to which actual 

6 savings aligned with projected savings; and 

7 ‘‘(x) provide oversight of the actions of 

8 the Secretary and other Federal officials 

9 under this subsection and report periodi10 cally to Congress and the public on the im11 plementation of this subsection. 

12 ‘‘(B) COMPOSITION OF COUNCIL.—The 

13 Council shall have 11 members, as follows: 

14 ‘‘(i) CHAIR.—The Chair of the Council 

15 shall be the Director of the Office of Man16 agement and Budget. 

17 ‘‘(ii) OTHER MEMBERS.—The head of 

18 each of the following entities shall designate 

19 1 officer or employee of the entity to be a 

20 Council member: 

21 ‘‘(I) The Department of Labor. 

22 ‘‘(II) The Department of Health 

23 and Human Services. 

24 ‘‘(III) The Social Security Ad25 ministration. 


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1 ‘‘(IV) The Department of Agri2 culture. 

3 ‘‘(V) The Department of Justice. 

4 ‘‘(VI) The Department of Housing 

5 and Urban Development. 

6 ‘‘(VII) The Department of Edu7 cation. 

8 ‘‘(VIII) The Department of Vet9 erans Affairs. 

10 ‘‘(IX) The Department of the 

11 Treasury. 

12 ‘‘(X) The Corporation for Na13 tional and Community Service. 

14 ‘‘(7) COMMISSION ON SOCIAL IMPACT PARTNER15 SHIPS.— 

16 ‘‘(A) ESTABLISHMENT.—There is estab17 lished the Commission on Social Impact Part18 nerships (in this paragraph referred to as the 

19 ‘Commission’). 

20 ‘‘(B) DUTIES.—The duties of the Commis21 sion shall be to— 

22 ‘‘(i) assist the Secretary and the Fed23 eral Interagency Council on Social Impact 

24 Partnerships in reviewing applications for 

25 funding under this subsection; 


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1 ‘‘(ii) make recommendations to the 

2 Secretary and the Federal Interagency 

3 Council on Social Impact Partnerships re4 garding the funding of social impact part5 nership agreements and feasibility studies; 

6 and 

7 ‘‘(iii) provide other assistance and in8 formation as requested by the Secretary or 

9 the Federal Interagency Council on Social 

10 Impact Partnerships. 

11 ‘‘(C) COMPOSITION.—The Commission shall 

12 be composed of 9 members, of whom— 

13 ‘‘(i) 1 shall be appointed by the Presi14 dent, who will serve as the Chair of the 

15 Commission; 

16 ‘‘(ii) 1 shall be appointed by the Ma17 jority Leader of the Senate; 

18 ‘‘(iii) 1 shall be appointed by the Mi19 nority Leader of the Senate; 

20 ‘‘(iv) 1 shall be appointed by the 

21 Speaker of the House of Representatives; 

22 ‘‘(v) 1 shall be appointed by the Minor23 ity Leader of the House of Representatives; 


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1 ‘‘(vi) 1 shall be appointed by the 

2 Chairman of the Committee on Finance of 

3 the Senate; 

4 ‘‘(vii) 1 shall be appointed by the 

5 ranking member of the Committee on Fi6 nance of the Senate; 

7 ‘‘(viii) 1 member shall be appointed by 

8 the Chairman of the Committee on Ways 

9 and Means of the House of Representatives; 

10 and 

11 ‘‘(ix) 1 shall be appointed by the rank12 ing member of the Committee on Ways and 

13 Means of the House of Representatives. 

14 ‘‘(D) QUALIFICATIONS OF COMMISSION

15 MEMBERS.—The members of the Commission 

16 shall— 

17 ‘‘(i) be experienced in finance, econom18 ics, pay for performance, or program eval19 uation; 

20 ‘‘(ii) have relevant professional or per21 sonal experience in a field related to 1 or 

22 more of the outcomes listed in this sub23 section; or 

24 ‘‘(iii) be qualified to review applica25 tions for social impact partnership projects 


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1 to determine whether the proposed metrics 

2 and evaluation methodologies are appro3 priately rigorous and reliant upon inde4 pendent data and evidence-based research. 

5 ‘‘(E) TIMING OF APPOINTMENTS.—The ap6 pointments of the members of the Commission 

7 shall be made not later than 120 days after the 

8 date of the enactment of this subsection, or, in 

9 the event of a vacancy, not later than 90 days 

10 after the date the vacancy arises. If a member of 

11 Congress fails to appoint a member by that date, 

12 the President may select a member of the Presi13 dent’s choice on behalf of the member of Congress. 

14 Notwithstanding the preceding sentence, if not 

15 all appointments have been made to the Commis16 sion as of that date, the Commission may oper17 ate with no fewer than 5 members until all ap18 pointments have been made. 

19 ‘‘(F) TERM OF APPOINTMENTS.— 

20 ‘‘(i) IN GENERAL.—The members ap21 pointed under subparagraph (C) shall serve 

22 as follows: 

23 ‘‘(I) 3 members shall serve for 2 

24 years. 


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1 ‘‘(II) 3 members shall serve for 3 

2 years. 

3 ‘‘(III) 3 members (1 of which 

4 shall be Chair of the Commission ap5 pointed by the President) shall serve 

6 for 4 years. 

7 ‘‘(ii) ASSIGNMENT OF TERMS.—The 

8 Commission shall designate the term length 

9 that each member appointed under subpara10 graph (C) shall serve by unanimous agree11 ment. In the event that unanimous agree12 ment cannot be reached, term lengths shall 

13 be assigned to the members by a random 

14 process. 

15 ‘‘(G) VACANCIES.—Subject to subparagraph 

16 (E), in the event of a vacancy in the Commis17 sion, whether due to the resignation of a member, 

18 the expiration of a member’s term, or any other 

19 reason, the vacancy shall be filled in the manner 

20 in which the original appointment was made 

21 and shall not affect the powers of the Commis22 sion. 

23 ‘‘(H) APPOINTMENT POWER.—Members of 

24 the Commission appointed under subparagraph 


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1 (C) shall not be subject to confirmation by the 

2 Senate. 

3 ‘‘(8) LIMITATION ON USE OF FUNDS.—Of the 

4 amounts reserved to carry out this subsection, the Sec5 retary may not use more than $2,000,000 in any fis6 cal year to support the review, approval, and over7 sight of social impact partnership projects, including 

8 activities conducted by— 

9 ‘‘(A) the Federal Interagency Council on 

10 Social Impact Partnerships; and 

11 ‘‘(B) any other agency consulted by the Sec12 retary before approving a social impact partner13 ship project or a feasibility study under para14 graph (4). 

15 ‘‘(9) NO FEDERAL FUNDING FOR CREDIT EN16 HANCEMENTS.—No amount reserved to carry out this 

17 subsection may be used to provide any insurance, 

18 guarantee, or other credit enhancement to a State or 

19 local government under which a Federal payment 

20 would be made to a State or local government as the 

21 result of a State or local government failing to 

22 achieve an outcome specified in a contract. 

23 ‘‘(10) AVAILABILITY OF FUNDS.—Amounts re24 served to carry out this subsection shall remain availVerDate Sep 11 2014 21:26 Jun 10, 2016 Jkt 059200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6203 E:\BILLS\H5170.RH H5170

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1 able until 10 years after the date of the enactment of 

2 this subsection. 

3 ‘‘(11) WEBSITE.—The Federal Interagency 

4 Council on Social Impact Partnerships shall establish 

5 and maintain a public website that shall display the 

6 following: 

7 ‘‘(A) A copy of, or method of accessing, each 

8 notice published regarding a social impact part9 nership project pursuant to this subsection. 

10 ‘‘(B) A copy of each feasibility study funded 

11 under this subsection. 

12 ‘‘(C) For each State or local government 

13 that has entered into an agreement with the Sec14 retary for a social impact partnership project, 

15 the website shall contain the following informa16 tion: 

17 ‘‘(i) The outcome goals of the project. 

18 ‘‘(ii) A description of each intervention 

19 in the project. 

20 ‘‘(iii) The target population that will 

21 be served by the project. 

22 ‘‘(iv) The expected social benefits to 

23 participants who receive the intervention 

24 and others who may be impacted. 


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1 ‘‘(v) The detailed roles, responsibilities, 

2 and purposes of each Federal, State, or local 

3 government entity, intermediary, service 

4 provider, independent evaluator, investor, 

5 or other stakeholder. 

6 ‘‘(vi) The payment terms, methodology 

7 used to calculate outcome payments, the 

8 payment schedule, and performance thresh9 olds. 

10 ‘‘(vii) The project budget. 

11 ‘‘(viii) The project timeline. 

12 ‘‘(ix) The project eligibility criteria. 

13 ‘‘(x) The evaluation design. 

14 ‘‘(xi) The metrics used to determine 

15 whether the proposed outcomes have been 

16 achieved and how these metrics are meas17 ured. 

18 ‘‘(D) A copy of the progress reports and the 

19 final reports relating to each social impact part20 nership project. 

21 ‘‘(E) An estimate of the savings to the Fed22 eral, State, and local government, on a program23 by-program basis and in the aggregate, resulting 

24 from the successful completion of the social im25 pact partnership project. 


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1 ‘‘(12) REGULATIONS.—The Secretary, in con2 sultation with the Federal Interagency Council on So3 cial Impact Partnerships, may issue regulations as 

4 necessary to carry out this subsection. 

5 ‘‘(13) DEFINITIONS.—In this subsection: 

6 ‘‘(A) AGENCY.—The term ‘agency’ has the 

7 meaning given that term in section 551 of title 

8 5, United States Code. 

9 ‘‘(B) INTERVENTION.—The term ‘interven10 tion’ means a specific service delivered to achieve 

11 an impact through a social impact partnership 

12 project. 

13 ‘‘(C) SECRETARY.—The term ‘Secretary’ 

14 means the Secretary of the Treasury. 

15 ‘‘(D) SOCIAL IMPACT PARTNERSHIP

16 PROJECT.—The term ‘social impact partnership 

17 project’ means a project that finances social serv18 ices using a social impact partnership model. 

19 ‘‘(E) SOCIAL IMPACT PARTNERSHIP

20 MODEL.—The term ‘social impact partnership 

21 model’ means a method of financing social serv22 ices in which— 

23 ‘‘(i) Federal funds are awarded to a 

24 State or local government only if a State or 

25 local government achieves certain outcomes 


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1 agreed on by the State or local government 

2 and the Secretary; and 

3 ‘‘(ii) the State or local government co4 ordinates with service providers, investors 

5 (if applicable to the project), and (if nec6 essary) an intermediary to identify— 

7 ‘‘(I) an intervention expected to 

8 produce the outcome; 

9 ‘‘(II) a service provider to deliver 

10 the intervention to the target popu11 lation; and 

12 ‘‘(III) investors to fund the deliv13 ery of the intervention. 

14 ‘‘(F) STATE.—The term ‘State’ means each 

15 State of the United States, the District of Colum16 bia, each commonwealth, territory or possession 

17 of the United States, and each federally recog18 nized Indian tribe. 

19 ‘‘(14) FUNDING.—Of the amounts made available 

20 to carry out subsection (b) for fiscal year 2017, the 

21 Secretary shall reserve $100,000,000 to carry out this 

22 subsection.’’. 


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Union Calendar No. 479 

114TH CONGRESS 

2D SESSION H. R. 5170 

[Report No. 114–616] 

A BILL 

To encourage and support partnerships between the 

tion’s social programs, and for other purposes. public and private sectors to improve our NaJUNE 10, 2016 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


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