I 

114TH CONGRESS 

2D SESSION H. R. 5170 

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 

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 ships to Pay for Results Act’’. 

6 SEC. 2. SOCIAL IMPACT PARTNERSHIPS. 

7 Section 403 of the Social Security Act (42 U.S.C. 

8 603) is amended by adding at the end the following: 

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


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1 ‘‘(1) PURPOSES.—The purposes of this sub2 section are the following: 

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

4 individuals in need in the United States by 

5 funding social programs that achieve real re6 sults. 

7 ‘‘(B) To redirect funds away from pro8 grams that, based on objective data, are ineffec9 tive, and into programs that achieve demon10 strable, measurable results. 

11 ‘‘(C) To ensure Federal funds are used ef12 fectively on social services to produce positive 

13 outcomes for both service recipients and tax14 payers. 

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

16 partnerships to address some of our Nation’s 

17 most pressing problems. 

18 ‘‘(E) To facilitate the creation of public19 private partnerships that bundle philanthropic 

20 or other private resources with existing public 

21 spending to scale up effective social interven22 tions already being implemented by private or23 ganizations, nonprofits, charitable organiza24 tions, and State and local governments across 

25 the country. 


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

2 social sector, allowing the United States to im3 prove the impact and effectiveness of vital social 

4 services programs while redirecting inefficient 

5 or duplicative spending. 

6 ‘‘(G) To incorporate outcomes measure7 ment and randomized controlled trials or other 

8 rigorous methodologies for assessing program 

9 impact. 

10 ‘‘(2) SOCIAL IMPACT PARTNERSHIP APPLICA11 TION.— 

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

13 the date of the enactment of this subsection, 

14 the Secretary of the Treasury, in consultation 

15 with the Federal Interagency Council on Social 

16 Impact Partnerships, shall publish in the Fed17 eral Register a request for proposals from 

18 States or local government for social impact 

19 partnership projects in accordance with this 

20 paragraph. 

21 ‘‘(B) REQUIRED OUTCOMES FOR SOCIAL

22 IMPACT PARTNERSHIP PROJECT.—To qualify as 

23 a social impact partnership project under this 

24 subsection, a project must produce 1 or more 

25 measurable, clearly defined outcomes that result 


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1 in social benefit and Federal savings through 

2 any of the following: 

3 ‘‘(i) Increasing work and earnings by 

4 individuals who have been unemployed in 

5 the United States for more than 6 con6 secutive months. 

7 ‘‘(ii) Increasing employment and earn8 ings of individuals who have attained 16 

9 years of age but not 25 years of age. 

10 ‘‘(iii) Increasing employment among 

11 individuals receiving Federal disability ben12 efits. 

13 ‘‘(iv) Reducing the dependence of low14 income families on Federal means-tested 

15 benefits. 

16 ‘‘(v) Improving rates of high school 

17 graduation. 

18 ‘‘(vi) Reducing teen and unplanned 

19 pregnancies. 

20 ‘‘(vii) Improving birth outcomes and 

21 early childhood health and development 

22 among low-income families and individuals. 

23 ‘‘(viii) Reducing rates of asthma, dia24 betes, or other preventable diseases among 

25 low-income families and individuals to reVerDate Sep 11 2014 04:07 May 10, 2016 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H5170.IH H5170

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1 duce the utilization of emergency and other 

2 high-cost care. 

3 ‘‘(ix) Increasing the proportion of chil4 dren living in 2-parent families. 

5 ‘‘(x) Reducing incidences and adverse 

6 consequences of child abuse and neglect. 

7 ‘‘(xi) Reducing the number of youth 

8 in foster care by increasing adoptions, per9 manent guardianship arrangements, reuni10 fication, or placement with a fit and willing 

11 relative, or by avoiding placing children in 

12 foster care by ensuring they can be cared 

13 for safely in their own homes. 

14 ‘‘(xii) Reducing the number of chil15 dren and youth in foster care residing in 

16 group homes, child care institutions, agen17 cy-operated foster homes, or other non18 family foster homes, unless it is deter19 mined that it is in the interest of the 

20 child’s long-term health, safety, or psycho21 logical well-being to not be placed in a 

22 family foster home. 

23 ‘‘(xiii) Reducing the number of chil24 dren returning to foster care. 


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1 ‘‘(xiv) Reducing recidivism among ju2 veniles, individuals released from prison, or 

3 other high-risk populations. 

4 ‘‘(xv) Reducing the rate of homeless5 ness among our most vulnerable popu6 lations. 

7 ‘‘(xvi) Improving the health and well8 being of those with mental, emotional, and 

9 behavioral health needs. 

10 ‘‘(xvii) Improving the educational out11 comes of special-needs or low-income chil12 dren. 

13 ‘‘(xviii) Improving the employment 

14 and well-being of returning United States 

15 military members. 

16 ‘‘(xix) Increasing the financial sta17 bility of low-income families. 

18 ‘‘(xx) Increasing the independence and 

19 employability of individuals who are phys20 ically or mentally disabled. 

21 ‘‘(xxi) Other measurable outcomes de22 fined by the State or local government that 

23 result in positive social outcomes and Fed24 eral savings. 


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

2 described in subparagraph (A) shall require a 

3 State or local government to submit an applica4 tion for the social impact partnership project 

5 that addresses the following: 

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

7 ‘‘(ii) A description of each interven8 tion in the project and anticipated out9 comes of the intervention. 

10 ‘‘(iii) Rigorous evidence demonstrating 

11 that the intervention can be expected to 

12 produce the desired outcomes. 

13 ‘‘(iv) The target population that will 

14 be served by the project. 

15 ‘‘(v) The expected social benefits to 

16 participants who receive the intervention 

17 and others who may be impacted. 

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

19 local government costs and other costs to 

20 conduct the project. 

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

22 local government savings and other sav23 ings, including an estimate of the savings 

24 to the Federal Government, on a program25 by-program basis and in the aggregate, if 


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1 the project is implemented and the out2 comes are achieved. 

3 ‘‘(viii) If savings resulting from the 

4 successful completion of the project are es5 timated to accrue to the State or local gov6 ernment, the likelihood of the State or 

7 local government to realize those savings. 

8 ‘‘(ix) A plan for delivering the inter9 vention through a social impact partner10 ship model. 

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

12 each service provider that will administer 

13 the intervention, including a summary of 

14 the experience of the service provider in 

15 delivering the proposed intervention or a 

16 similar intervention, or demonstrating that 

17 the service provider has the expertise nec18 essary to deliver the proposed intervention. 

19 ‘‘(xi) An explanation of the experience 

20 of the State or local government, the inter21 mediary, or the service provider in raising 

22 private and philanthropic capital to fund 

23 social service investments. 

24 ‘‘(xii) The detailed roles and respon25 sibilities of each entity involved in the 


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1 project, including any State or local gov2 ernment entity, intermediary, service pro3 vider, independent evaluator, investor, or 

4 other stakeholder. 

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

6 the service provider delivering the proposed 

7 intervention or a similar intervention, or a 

8 summary demonstrating the service pro9 vider has the expertise necessary to deliver 

10 the proposed intervention. 

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

12 in the area where the intervention will be 

13 delivered or among the target population 

14 who will receive the intervention. 

15 ‘‘(xv) The proposed payment terms, 

16 the methodology used to calculate outcome 

17 payments, the payment schedule, and per18 formance thresholds. 

19 ‘‘(xvi) The project budget. 

20 ‘‘(xvii) The project timeline. 

21 ‘‘(xviii) The criteria used to determine 

22 the eligibility of an individual for the 

23 project, including how selected populations 

24 will be identified, how they will be referred 


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1 to the project, and how they will be en2 rolled in the project. 

3 ‘‘(xix) The evaluation design. 

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

5 determine whether the outcomes have been 

6 achieved and how the metrics will be meas7 ured. 

8 ‘‘(xxi) An explanation of how the 

9 metrics used to determine whether the out10 comes have been achieved are independent, 

11 objective indicators of impact and are not 

12 subject to manipulation by the service pro13 vider, intermediary, or investor. 

14 ‘‘(xxii) A summary explaining the 

15 independence of the evaluator from the 

16 other entities involved in the project and 

17 the evaluator’s experience in conducting 

18 rigorous evaluations of program effective19 ness including, where available, well-imple20 mented randomized controlled trials on the 

21 intervention or similar interventions. 

22 ‘‘(xxiii) The capacity of the service 

23 provider to deliver the intervention to the 

24 number of participants the State or local 


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1 government proposes to serve in the 

2 project. 

3 ‘‘(D) PROJECT INTERMEDIARY INFORMA4 TION REQUIRED.—The application described in 

5 subparagraph (C) shall also contain the fol6 lowing information about any intermediary for 

7 the social impact partnership project (whether 

8 an intermediary is a service provider or other 

9 entity): 

10 ‘‘(i) Experience and capacity for pro11 viding or facilitating the provision of the 

12 type of intervention proposed. 

13 ‘‘(ii) The mission and goals. 

14 ‘‘(iii) Information on whether the 

15 intermediary is already working with serv16 ice providers that provide this intervention 

17 or an explanation of the capacity of the 

18 intermediary to begin working with service 

19 providers to provide the intervention. 

20 ‘‘(iv) Experience working in a collabo21 rative environment across government and 

22 nongovernmental entities. 

23 ‘‘(v) Previous experience collaborating 

24 with public or private entities to implement 

25 evidence-based programs. 


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1 ‘‘(vi) Ability to raise or provide fund2 ing to cover operating costs (if applicable 

3 to the project). 

4 ‘‘(vii) Capacity and infrastructure to 

5 track outcomes and measure results, in6 cluding— 

7 ‘‘(I) capacity to track and ana8 lyze program performance and assess 

9 program impact; and 

10 ‘‘(II) experience with perform11 ance-based awards or performance12 based contracting and achieving 

13 project milestones and targets. 

14 ‘‘(viii) Role in delivering the interven15 tion. 

16 ‘‘(ix) How the intermediary would 

17 monitor program success, including a de18 scription of the interim benchmarks and 

19 outcome measures. 

20 ‘‘(E) FEASIBILITY STUDIES FUNDED

21 THROUGH OTHER SOURCES.—The notice de22 scribed in subparagraph (A) shall permit a 

23 State or local government to submit an applica24 tion for social impact partnership funding that 

25 contains information from a feasibility study 


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1 developed for purposes other than applying for 

2 funding under this subsection. 

3 ‘‘(3) AWARDING SOCIAL IMPACT PARTNERSHIP

4 AGREEMENTS.— 

5 ‘‘(A) TIMELINE IN AWARDING AGREE6 MENT.—Not later than 6 months after receiving 

7 an application in accordance with paragraph 

8 (2), the Secretary, in consultation with the Fed9 eral Interagency Council on Social Impact Part10 nerships, shall determine whether to enter into 

11 an agreement for a social impact partnership 

12 project with a State or local government. 

13 ‘‘(B) CONSIDERATIONS IN AWARDING

14 AGREEMENT.—In determining whether to enter 

15 into an agreement for a social impact partner16 ship project (the application for which was sub17 mitted under paragraph (2)) the Secretary, in 

18 consultation with the Federal Interagency 

19 Council on Social Impact Partnerships (estab20 lished by paragraph (6)) and the head of any 

21 Federal agency administering a similar inter22 vention or serving a population similar to that 

23 served by the project, shall consider each of the 

24 following: 


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1 ‘‘(i) The recommendations made by 

2 the Commission on Social Impact Partner3 ships. 

4 ‘‘(ii) The value to the Federal Govern5 ment of the outcomes expected to be 

6 achieved if the outcomes specified in the 

7 agreement are achieved. 

8 ‘‘(iii) The likelihood, based on evi9 dence provided in the application and other 

10 evidence, that the State or local govern11 ment in collaboration with the inter12 mediary and the service providers will 

13 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 

18 local governments if the outcomes specified 

19 in the agreement are achieved. 

20 ‘‘(vi) The expected quality of the eval21 uation that would be conducted with re22 spect to the agreement. 

23 ‘‘(C) AGREEMENT AUTHORITY.— 

24 ‘‘(i) AGREEMENT REQUIREMENTS.— 

25 In accordance with this paragraph, the 


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1 Secretary, in consultation with the Federal 

2 Interagency Council on Social Impact 

3 Partnerships and the head of any Federal 

4 agency administering a similar intervention 

5 or serving a population similar to that 

6 served by the project, may enter into an 

7 agreement for a social impact partnership 

8 project with a State or local government if 

9 the Secretary, in consultation with the 

10 Federal Interagency Council on Social Im11 pact Partnerships, determines that each of 

12 the following 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 

19 outcome specified is less than or equal 

20 to the value of the outcome to the 

21 Federal Government over a period not 

22 to exceed 10 years, as determined by 

23 the Secretary, in consultation with the 

24 State or local government. 


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1 ‘‘(III) The duration of the 

2 project 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 

10 achieve each outcome specified in the 

11 agreement. 

12 ‘‘(V) The State, local govern13 ment, intermediary, or service pro14 vider has experience raising private or 

15 philanthropic capital to fund social 

16 service investments (if applicable to 

17 the 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.— 

10 Not later than 30 days after entering into an 

11 agreement under this paragraph, the Secretary 

12 shall publish a notice in the Federal Register 

13 that includes, with regard to the agreement, the 

14 following: 

15 ‘‘(i) The outcome goals of the social 

16 impact partnership project. 

17 ‘‘(ii) A description of each interven18 tion 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, responsibil25 ities, and purposes of each Federal, State, 


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1 or local government entity, intermediary, 

2 service provider, independent evaluator, in3 vestor, 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, 

18 on a program-by-program basis and in the 

19 aggregate, if the agreement is entered into 

20 and implemented and the outcomes are 

21 achieved. 

22 ‘‘(E) AUTHORITY TO TRANSFER ADMINIS23 TRATION OF AGREEMENT.—The Secretary may 

24 transfer to the head of another Federal agency 

25 the authority to administer (including making 


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1 payments under) an agreement entered into 

2 under subparagraph (C), and any funds nec3 essary to do so. 

4 ‘‘(4) FEASIBILITY STUDY FUNDING.— 

5 ‘‘(A) REQUESTS FOR FUNDING FOR FEASI6 BILITY STUDIES.—The Secretary shall reserve a 

7 portion of the amount reserved to carry out this 

8 subsection to assist States or local governments 

9 in developing feasibility studies to apply for so10 cial impact partnership funding under para11 graph (2). To be eligible to receive funding to 

12 assist with completing a feasibility study, a 

13 State or local government shall submit an appli14 cation for feasibility study funding addressing 

15 the following: 

16 ‘‘(i) A description of the outcome 

17 goals of the social impact partnership 

18 project. 

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

20 including anticipated program design, tar21 get population, an estimate regarding the 

22 number of individuals to be served, and 

23 setting for the intervention. 


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1 ‘‘(iii) Evidence to support the likeli2 hood that the intervention will produce the 

3 desired outcomes. 

4 ‘‘(iv) A description of the potential 

5 metrics to be used. 

6 ‘‘(v) The expected social benefits to 

7 participants who receive the intervention 

8 and others who may be impacted. 

9 ‘‘(vi) Estimated costs to conduct the 

10 project. 

11 ‘‘(vii) Estimates of Federal, State, 

12 and local government savings and other 

13 savings if the project is implemented and 

14 the outcomes are achieved. 

15 ‘‘(viii) An estimated timeline for im16 plementation and completion of the 

17 project, which shall not exceed 10 years. 

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

19 which the State or local government selects 

20 an intermediary to operate the project, any 

21 partnerships needed to successfully execute 

22 the project and the ability of the inter23 mediary to foster the partnerships. 

24 ‘‘(x) The expected resources needed to 

25 complete the feasibility study for the State 


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1 or local government to apply for social im2 pact partnership funding under paragraph 

3 (2). 

4 ‘‘(B) FEDERAL SELECTION OF APPLICA5 TIONS FOR FEASIBILITY STUDY.—Not later 

6 than 6 months after receiving an application for 

7 feasibility study funding under subparagraph 

8 (A), the Secretary, in consultation with the 

9 Federal Interagency Council on Social Impact 

10 Partnerships and the head of any Federal agen11 cy administering a similar intervention or serv12 ing a population similar to that served by the 

13 project, shall select State or local government 

14 feasibility study proposals for funding based on 

15 the following: 

16 ‘‘(i) The recommendations made by 

17 the Commission on Social Impact Partner18 ships. 

19 ‘‘(ii) The likelihood that the proposal 

20 will achieve the desired outcomes. 

21 ‘‘(iii) The value of the outcomes ex22 pected to be achieved. 

23 ‘‘(iv) The potential savings to the 

24 Federal Government if the social impact 

25 partnership project is successful. 


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1 ‘‘(v) The potential savings to the 

2 State and local governments if the project 

3 is successful. 

4 ‘‘(C) PUBLIC DISCLOSURE.—Not later 

5 than 30 days after selecting a State or local 

6 government for feasibility study funding under 

7 this paragraph, the Secretary shall cause to be 

8 published on the website of the Federal Inter9 agency Council on Social Impact Partnerships 

10 information explaining why a State or local gov11 ernment was granted feasibility study funding. 

12 ‘‘(D) FUNDING RESTRICTION.— 

13 ‘‘(i) FEASIBILITY STUDY RESTRIC14 TION.—The Secretary may not provide fea15 sibility study funding under this paragraph 

16 for more than 50 percent of the estimated 

17 total cost of the feasibility study reported 

18 in the State or local government applica19 tion submitted under subparagraph (A). 

20 ‘‘(ii) AGGREGATE RESTRICTION.—Of 

21 the total amount reserved to carry out this 

22 subsection, the Secretary may not use 

23 more than $10,000,000 to provide feasi24 bility study funding to States or local gov25 ernments under this paragraph. 


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1 ‘‘(iii) NO GUARANTEE OF FUNDING.— 

2 The Secretary shall have the option to 

3 award no funding under this paragraph. 

4 ‘‘(E) SUBMISSION OF FEASIBILITY STUDY

5 REQUIRED.—Not later than 9 months after the 

6 receipt of feasibility study funding under this 

7 paragraph, a State or local government receiv8 ing the funding shall complete the feasibility 

9 study and submit the study to the Federal 

10 Interagency Council on Social Impact Partner11 ships. 

12 ‘‘(F) DELEGATION OF AUTHORITY.—The 

13 Secretary may transfer to the head of another 

14 Federal agency the authorities provided in this 

15 paragraph and any funds necessary to exercise 

16 the authorities. 

17 ‘‘(5) EVALUATIONS.— 

18 ‘‘(A) AUTHORITY TO ENTER INTO AGREE19 MENTS.—For each State or local government 

20 awarded a social impact partnership project ap21 proved by the Secretary under this subsection, 

22 the head of the relevant agency, as determined 

23 by the Federal Interagency Council on Social 

24 Impact Partnerships, shall enter into an agree25 ment with the State or local government to pay 


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1 for all or part of the independent evaluation to 

2 determine whether the State or local govern3 ment project has met an outcome specified in 

4 the agreement in order for the State or local 

5 government to receive outcome payments under 

6 this subsection. 

7 ‘‘(B) EVALUATOR QUALIFICATIONS.—The 

8 head of the relevant agency may not enter into 

9 an agreement with a State or local government 

10 unless the head determines that the evaluator is 

11 independent of the other parties to the agree12 ment and has demonstrated substantial experi13 ence in conducting rigorous evaluations of pro14 gram effectiveness including, where available 

15 and appropriate, well-implemented randomized 

16 controlled trials on the intervention or similar 

17 interventions. 

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

19 evaluation used to determine whether a State or 

20 local government will receive outcome payments 

21 under this subsection shall use experimental de22 signs using random assignment or other reli23 able, evidence-based research methodologies, as 

24 certified by the Federal Interagency Council on 

25 Social Impact Partnerships, that allow for the 


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1 strongest possible causal inferences when ran2 dom assignment is not feasible. 

3 ‘‘(D) PROGRESS REPORT.— 

4 ‘‘(i) SUBMISSION OF REPORT.—The 

5 independent evaluator shall— 

6 ‘‘(I) not later than 2 years after 

7 a project has been approved by the 

8 Secretary and biannually thereafter 

9 until the project is concluded, submit 

10 to the head of the relevant agency and 

11 the Federal Interagency Council on 

12 Social Impact Partnerships a written 

13 report summarizing the progress that 

14 has been made in achieving each out15 come specified in the agreement; and 

16 ‘‘(II) before the scheduled time of 

17 the first outcome payment and before 

18 the scheduled time of each subsequent 

19 payment, submit to the head of the 

20 relevant agency and the Federal 

21 Interagency Council on Social Impact 

22 Partnerships a written report that in23 cludes the results of the evaluation 

24 conducted to determine whether an 

25 outcome payment should be made 


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1 along with information on the unique 

2 factors that contributed to achieving 

3 or failing to achieve the outcome, the 

4 challenges faced in attempting to 

5 achieve the outcome, and information 

6 on the improved future delivery of this 

7 or similar interventions. 

8 ‘‘(ii) SUBMISSION TO CONGRESS.— 

9 Not later than 30 days after receipt of the 

10 written report pursuant to clause (i)(II), 

11 the Federal Interagency Council on Social 

12 Impact Partnerships shall submit the re13 port to each committee of jurisdiction in 

14 the House of Representatives and the Sen15 ate. 

16 ‘‘(E) FINAL REPORT.— 

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

18 6 months after the social impact partner19 ship project is completed, the independent 

20 evaluator shall— 

21 ‘‘(I) evaluate the effects of the 

22 activities undertaken pursuant to the 

23 agreement with regard to each out24 come specified in the agreement; and 


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1 ‘‘(II) submit to the head of the 

2 relevant agency and the Federal 

3 Interagency Council on Social Impact 

4 Partnerships a written report that in5 cludes the results of the evaluation 

6 and the conclusion of the evaluator as 

7 to whether the State or local govern8 ment has fulfilled each obligation of 

9 the agreement, along with information 

10 on the unique factors that contributed 

11 to the success or failure of the project, 

12 the challenges faced in attempting to 

13 achieve the outcome, and information 

14 on the improved future delivery of this 

15 or similar interventions. 

16 ‘‘(ii) SUBMISSION TO CONGRESS.— 

17 Not later than 30 days after receipt of the 

18 written report pursuant to clause (i)(II), 

19 the Federal Interagency Council on Social 

20 Impact Partnerships shall submit the re21 port to each committee of jurisdiction in 

22 the House of Representatives and the Sen23 ate. 

24 ‘‘(F) LIMITATION ON COST OF EVALUA25 TIONS.—Of the amount reserved under this 


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1 subsection for social impact partnership 

2 projects, the Secretary may not obligate more 

3 than 15 percent to evaluate the implementation 

4 and outcomes of the projects. 

5 ‘‘(G) DELEGATION OF AUTHORITY.—The 

6 Secretary may transfer to the head of another 

7 Federal agency the authorities provided in this 

8 paragraph and any funds necessary to exercise 

9 the authorities. 

10 ‘‘(6) FEDERAL INTERAGENCY COUNCIL ON SO11 CIAL IMPACT PARTNERSHIPS.— 

12 ‘‘(A) ESTABLISHMENT.—There is estab13 lished the Federal Interagency Council on So14 cial Impact Partnerships (in this paragraph re15 ferred to as the ‘Council’) to— 

16 ‘‘(i) coordinate the efforts of social 

17 impact partnership projects funded under 

18 this subsection; 

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

20 the development and implementation of the 

21 projects; 

22 ‘‘(iii) advise the Secretary on specific 

23 programmatic and policy matter related to 

24 the projects; 


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1 ‘‘(iv) provide subject-matter expertise 

2 to the Secretary with regard to the 

3 projects; 

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

5 government that has entered into an agree6 ment with the Secretary for a social impact 

7 partnership project under this subsection 

8 and each evaluator selected by the head of 

9 the relevant agency under paragraph (5) 

10 has access to Federal administrative data 

11 to assist the State or local government and 

12 the evaluator in evaluating the perform13 ance and outcomes of the project; 

14 ‘‘(vi) address issues that will influence 

15 the future of social impact partnership 

16 projects in the United States; 

17 ‘‘(vii) provide guidance to the execu18 tive branch on the future of social impact 

19 partnership projects in the United States; 

20 ‘‘(viii) review State and local govern21 ment applications for social impact part22 nerships to ensure that agreements will 

23 only be awarded under this subsection 

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1 gies support the conclusion that an agree2 ment will yield savings to the Federal Gov3 ernment if the project outcomes are 

4 achieved before the applications are ap5 proved by the Secretary; 

6 ‘‘(ix) certify, in the case of each ap7 proved social impact partnership, that the 

8 project will yield a projected savings to the 

9 Federal Government if the project out10 comes are achieved, and coordinate with 

11 the relevant Federal agency to produce an 

12 after-action accounting once the project is 

13 complete to determine the actual Federal 

14 savings realized, and the extent to which 

15 actual savings aligned with projected sav16 ings; and 

17 ‘‘(x) provide oversight of the actions 

18 of the Secretary and other Federal officials 

19 under this subsection and report periodi20 cally to Congress and the public on the im21 plementation of this subsection. 

22 ‘‘(B) COMPOSITION OF COUNCIL.—The 

23 Council shall have 11 members, as follows: 


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1 ‘‘(i) CHAIR.—The Chair of the Coun2 cil shall be the Director of the Office of 

3 Management and Budget. 

4 ‘‘(ii) OTHER MEMBERS.—The head of 

5 each of the following entities shall des6 ignate 1 officer or employee of the entity 

7 to be a Council member: 

8 ‘‘(I) The Department of Labor. 

9 ‘‘(II) The Department of Health 

10 and Human Services. 

11 ‘‘(III) The Social Security Ad12 ministration. 

13 ‘‘(IV) The Department of Agri14 culture. 

15 ‘‘(V) The Department of Justice. 

16 ‘‘(VI) The Department of Hous17 ing and Urban Development. 

18 ‘‘(VII) The Department of Edu19 cation. 

20 ‘‘(VIII) The Department of Vet21 erans Affairs. 

22 ‘‘(IX) The Department of the 

23 Treasury. 

24 ‘‘(X) The Corporation for Na25 tional and Community Service. 


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1 ‘‘(7) COMMISSION ON SOCIAL IMPACT PARTNER2 SHIPS.— 

3 ‘‘(A) ESTABLISHMENT.—There is estab4 lished the Commission on Social Impact Part5 nerships (in this paragraph referred to as the 

6 ‘Commission’). 

7 ‘‘(B) DUTIES.—The duties of the Commis8 sion shall be to— 

9 ‘‘(i) assist the Secretary and the Fed10 eral Interagency Council on Social Impact 

11 Partnerships in reviewing applications for 

12 funding under this subsection; 

13 ‘‘(ii) make recommendations to the 

14 Secretary and the Federal Interagency 

15 Council on Social Impact Partnerships re16 garding the funding of social impact part17 nership agreements and feasibility studies; 

18 and 

19 ‘‘(iii) provide other assistance and in20 formation as requested by the Secretary or 

21 the Federal Interagency Council on Social 

22 Impact Partnerships. 

23 ‘‘(C) COMPOSITION.—The Commission 

24 shall be composed of 9 members, of whom— 


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1 ‘‘(i) 1 shall be appointed by the Presi2 dent, who will serve as the Chair of the 

3 Commission; 

4 ‘‘(ii) 1 shall be appointed by the Ma5 jority Leader of the Senate; 

6 ‘‘(iii) 1 shall be appointed by the Mi7 nority Leader of the Senate; 

8 ‘‘(iv) 1 shall be appointed by the 

9 Speaker of the House of Representatives; 

10 ‘‘(v) 1 shall be appointed by the Mi11 nority Leader of the House of Representa12 tives; 

13 ‘‘(vi) 1 shall be appointed by the 

14 Chairman of the Committee on Finance of 

15 the Senate; 

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

17 ranking member of the Committee on Fi18 nance of the Senate; 

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

20 the Chairman of the Committee on Ways 

21 and Means of the House of Representa22 tives; and 

23 ‘‘(ix) 1 shall be appointed by the 

24 ranking member of the Committee on 


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1 Ways and Means of the House of Rep2 resentatives. 

3 ‘‘(D) QUALIFICATIONS OF COMMISSION

4 MEMBERS.—The members of the Commission 

5 shall— 

6 ‘‘(i) be experienced in finance, eco7 nomics, pay for performance, or program 

8 evaluation; 

9 ‘‘(ii) have relevant professional or per10 sonal experience in a field related to 1 or 

11 more of the outcomes listed in this sub12 section; or 

13 ‘‘(iii) be qualified to review applica14 tions for social impact partnership projects 

15 to determine whether the proposed metrics 

16 and evaluation methodologies are appro17 priately rigorous and reliant upon inde18 pendent data and evidence-based research. 

19 ‘‘(E) TIMING OF APPOINTMENTS.—The ap20 pointments of the members of the Commission 

21 shall be made not later than 120 days after the 

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

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

24 after the date the vacancy arises. If a member 

25 of Congress fails to appoint a member by that 


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1 date, the President may select a member of the 

2 President’s choice on behalf of the member of 

3 Congress. Notwithstanding the preceding sen4 tence, if not all appointments have been made 

5 to the Commission as of that date, the Commis6 sion may operate with no fewer than 5 members 

7 until all appointments have been made. 

8 ‘‘(F) TERM OF APPOINTMENTS.— 

9 ‘‘(i) IN GENERAL.—The members ap10 pointed under subparagraph (C) shall serve 

11 as follows: 

12 ‘‘(I) 3 members shall serve for 2 

13 years. 

14 ‘‘(II) 3 members shall serve for 3 

15 years. 

16 ‘‘(III) 3 members (1 of which 

17 shall be Chair of the Commission ap18 pointed by the President) shall serve 

19 for 4 years. 

20 ‘‘(ii) ASSIGNMENT OF TERMS.—The 

21 Commission shall designate the term 

22 length that each member appointed under 

23 subparagraph (C) shall serve by unani24 mous agreement. In the event that unani25 mous agreement cannot be reached, term 


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1 lengths shall be assigned to the members 

2 by a random process. 

3 ‘‘(G) VACANCIES.—Subject to subpara4 graph (E), in the event of a vacancy in the 

5 Commission, whether due to the resignation of 

6 a member, the expiration of a member’s term, 

7 or any other reason, the vacancy shall be filled 

8 in the manner in which the original appoint9 ment was made and shall not affect the powers 

10 of the Commission. 

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

12 the Commission appointed under subparagraph 

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

14 Senate. 

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

16 amounts reserved to carry out this subsection, the 

17 Secretary may not use more than $2,000,000 in any 

18 fiscal year to support the review, approval, and over19 sight of social impact partnership projects, including 

20 activities conducted by— 

21 ‘‘(A) the Federal Interagency Council on 

22 Social Impact Partnerships; and 

23 ‘‘(B) any other agency consulted by the 

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1 nership project or a feasibility study under 

2 paragraph (4). 

3 ‘‘(9) NO FEDERAL FUNDING FOR CREDIT EN4 HANCEMENTS.—No amount reserved to carry out 

5 this subsection may be used to provide any insur6 ance, guarantee, or other credit enhancement to a 

7 State or local government under which a Federal 

8 payment would be made to a State or local govern9 ment as the result of a State or local government 

10 failing to achieve an outcome specified in a contract. 

11 ‘‘(10) AVAILABILITY OF FUNDS.—Amounts re12 served to carry out this subsection shall remain 

13 available until 10 years after the date of the enact14 ment of this subsection. 

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

16 Council on Social Impact Partnerships shall estab17 lish and maintain a public website that shall display 

18 the following: 

19 ‘‘(A) A copy of, or method of accessing, 

20 each notice published regarding a social impact 

21 partnership project pursuant to this subsection. 

22 ‘‘(B) A copy of each feasibility study fund23 ed under this subsection. 

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

25 that has entered into an agreement with the 


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1 Secretary for a social impact partnership 

2 project, the website shall contain the following 

3 information: 

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

5 ‘‘(ii) A description of each interven6 tion in the project. 

7 ‘‘(iii) The target population that will 

8 be served by the project. 

9 ‘‘(iv) The expected social benefits to 

10 participants who receive the intervention 

11 and others who may be impacted. 

12 ‘‘(v) The detailed roles, responsibil13 ities, and purposes of each Federal, State, 

14 or local government entity, intermediary, 

15 service provider, independent evaluator, in16 vestor, or other stakeholder. 

17 ‘‘(vi) The payment terms, method18 ology used to calculate outcome payments, 

19 the payment schedule, and performance 

20 thresholds. 

21 ‘‘(vii) The project budget. 

22 ‘‘(viii) The project timeline. 

23 ‘‘(ix) The project eligibility criteria. 

24 ‘‘(x) The evaluation design. 


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1 ‘‘(xi) The metrics used to determine 

2 whether the proposed outcomes have been 

3 achieved and how these metrics are meas4 ured. 

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

6 the final reports relating to each social impact 

7 partnership project. 

8 ‘‘(E) An estimate of the savings to the 

9 Federal, State, and local government, on a pro10 gram-by-program basis and in the aggregate, 

11 resulting from the successful completion of the 

12 social impact partnership project. 

13 ‘‘(12) REGULATIONS.—The Secretary, in con14 sultation with the Federal Interagency Council on 

15 Social Impact Partnerships, may issue regulations as 

16 necessary to carry out this subsection. 

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

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

19 meaning given that term in section 551 of title 

20 5, United States Code. 

21 ‘‘(B) INTERVENTION.—The term ‘interven22 tion’ means a specific service delivered to 

23 achieve an impact through a social impact part24 nership project. 


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

2 means the Secretary of the Treasury. 

3 ‘‘(D) SOCIAL IMPACT PARTNERSHIP

4 PROJECT.—The term ‘social impact partnership 

5 project’ means a project that finances social 

6 services using a social impact partnership 

7 model. 

8 ‘‘(E) SOCIAL IMPACT PARTNERSHIP

9 MODEL.—The term ‘social impact partnership 

10 model’ means a method of financing social serv11 ices in which— 

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

13 State or local government only if a State 

14 or local government achieves certain out15 comes agreed on by the State or local gov16 ernment and the Secretary; and 

17 ‘‘(ii) the State or local government co18 ordinates with service providers, investors 

19 (if applicable to the project), and (if nec20 essary) an intermediary to identify— 

21 ‘‘(I) an intervention expected to 

22 produce the outcome; 

23 ‘‘(II) a service provider to deliver 

24 the intervention to the target popu25 lation; and 


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1 ‘‘(III) investors to fund the deliv2 ery of the intervention. 

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

4 each State of the United States, the District of 

5 Columbia, each commonwealth, territory or pos6 session of the United States, and each federally 

7 recognized Indian tribe. 

8 ‘‘(14) FUNDING.—Of the amounts made avail9 able to carry out subsection (b) for fiscal year 2017, 

10 the Secretary shall reserve $100,000,000 to carry 

11 out this subsection.’’. 

Æ 


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