I 

113TH CONGRESS 

2D SESSION H. R. 4885 

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 

JUNE 18, 2014 

Mr. YOUNG of Indiana (for himself, Mr. DELANEY, Mr. GRIFFIN of Arkansas, 

Mr. LARSON of Connecticut, Mr. REED, Mr. POLIS, Mr. ROSS, Mr. KENNEDY, and Mr. SCHOCK) introduced the following bill; which was referred 

to the Committee on Ways and Means, and in addition to the Committee 

on Financial Services, for a period to be subsequently determined by the 

Speaker, in each case for consideration of such provisions as fall within 

the jurisdiction of the committee concerned 

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 Bond 

5 Act’’. 


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1 SEC. 2. SOCIAL IMPACT BONDS. 

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

3 is amended— 

4 (1) in the heading, by striking ‘‘to States’’ and 

5 inserting ‘‘and Programs for’’; and 

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

7 ‘‘Subtitle C—Social Impact Bonds 

8 ‘‘SEC. 2051. PURPOSES. 

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

10 ‘‘(1) To improve the lives of families and indi11 viduals in need in the United States by funding so12 cial programs that achieve real results. 

13 ‘‘(2) To ensure Federal funds are used effec14 tively on social services to produce positive outcomes 

15 for both service recipients and taxpayers. 

16 ‘‘(3) To establish the use of social impact bonds 

17 to address some of our nation’s most pressing prob18 lems. 

19 ‘‘(4) To facilitate the creation of public-private 

20 partnerships that bundle philanthropic and other 

21 private resources with existing public spending to 

22 scale up effective social interventions already being 

23 implemented by private organizations, non-profits, 

24 charitable organizations, and local governments 

25 across the country. 


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

2 sector, allowing the United States to improve the im3 pact and effectiveness of vital social programs. 

4 ‘‘SEC. 2052. SOCIAL IMPACT BOND APPLICATION. 

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

6 of the enactment of this Act, the Secretary of the Treas7 ury, in consultation with the Federal Interagency Council 

8 on Social Impact Bonds, shall publish in the Federal Reg9 ister a notice that the Department is seeking proposals 

10 from States or local government for social impact bond 

11 projects in accordance with this section. 

12 ‘‘(b) REQUIRED OUTCOMES FOR SOCIAL IMPACT

13 BOND PROJECT.—To qualify as a social impact bond 

14 project under this subtitle, a project must produce a meas15 urable, clearly defined outcome that results in social ben16 efit and Federal savings through any of the following: 

17 ‘‘(1) Increasing work and earnings by individ18 uals who have been unemployed in the United States 

19 for more than six consecutive months. 

20 ‘‘(2) Increasing employment and earnings of in21 dividuals age 16 to 24. 

22 ‘‘(3) Increasing employment among individuals 

23 receiving Federal disability benefits. 

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

25 families on Federal means-tested benefits. 


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

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

3 ‘‘(7) Improving birth outcomes among low-in4 come families and individuals. 

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

6 other preventable diseases among low-income fami7 lies and individuals. 

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

9 in two-parent families. 

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

11 neglect. 

12 ‘‘(11) Increasing adoptions of children from fos13 ter care. 

14 ‘‘(12) Reducing recidivism among individuals 

15 released from prison. 

16 ‘‘(13) Other measurable outcomes defined by 

17 the State or local government that result in positive 

18 social outcomes and Federal savings. 

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

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

21 government to submit a feasibility study for the social im22 pact bond project that contains the following information: 

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


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

2 project and anticipated outcome of such interven3 tion. 

4 ‘‘(3) Rigorous evidence demonstrating that the 

5 intervention can be expected to produce the desired 

6 outcomes. 

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

8 by the project. 

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

10 who receive the intervention and others who may be 

11 impacted. 

12 ‘‘(6) Projected Federal, State, and local govern13 ment costs and other costs to conduct the project. 

14 ‘‘(7) Projected Federal, State, and local govern15 ment savings and other savings, including an esti16 mate prepared by the State or local government of 

17 the savings to the Federal, State, and local govern18 ment, on a program-by-program basis and in the ag19 gregate, if the project is implemented and the out20 comes are achieved. 

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

22 completion of the project are estimated to accrue to 

23 the State or local government, the likelihood of the 

24 State or local government to realize those savings. 


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

2 through a social impact bond model. 

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

4 service provider that will administer the intervention. 

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

6 State or local government, the intermediary, or the 

7 service provider in raising private and philanthropic 

8 capital to fund social service investments. 

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

10 each entity involved in the project, including any 

11 State or local government entity, intermediary, serv12 ice provider, independent evaluator, investor, or 

13 other stakeholder. 

14 ‘‘(13) A summary of the experience of the serv15 ice provider delivering the proposed intervention, a 

16 similar intervention, or a summary demonstrating 

17 the service provider has the expertise necessary to 

18 deliver the intervention. 

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

20 area where the intervention will be delivered or 

21 among the target population who will receive the 

22 intervention. 

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

24 used to calculate outcome payments, the payment 

25 schedule, and performance thresholds. 


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1 ‘‘(16) The project budget. 

2 ‘‘(17) The project timeline. 

3 ‘‘(18) The criteria used to determine the eligi4 bility of an individual for the project, including how 

5 selected populations will be identified, how they will 

6 be referred to the project, and how they will be en7 rolled in the project. 

8 ‘‘(19) The evaluation design. 

9 ‘‘(20) The metrics that will be used to deter10 mine whether the outcomes have been achieved and 

11 how such metrics will be measured. 

12 ‘‘(21) A summary explaining the independence 

13 of the evaluator from the other entities involved in 

14 the project and the evaluator’s experience in con15 ducting rigorous evaluations of program effective16 ness including, where available, well-implemented 

17 randomized controlled trials on the intervention or 

18 similar interventions. 

19 ‘‘(22) The capacity of the service provider to 

20 deliver the intervention to the number of partici21 pants the State or local government proposes to 

22 serve in the project. 

23 ‘‘(d) PROJECT INTERMEDIARY INFORMATION RE24 QUIRED.—The feasibility study described in subsection (c) 

25 shall also contain the following information about the 


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1 intermediary for the social impact bond project (whether 

2 the intermediary is the service provider or other entity): 

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

4 facilitating the provision of the type of intervention 

5 proposed. 

6 ‘‘(2) The mission and goals. 

7 ‘‘(3) Information on whether the intermediary 

8 is already working with service providers that pro9 vide this intervention or an explanation of the capac10 ity of the intermediary to begin working with service 

11 providers to provide the intervention. 

12 ‘‘(4) Experience working in a collaborative envi13 ronment across government and nongovernmental 

14 entities. 

15 ‘‘(5) Previous experience collaborating with 

16 public or private entities to implement evidence17 based programs. 

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

19 operating costs (if applicable to the project). 

20 ‘‘(7) Capacity and infrastructure to track out21 comes and measure results, including— 

22 ‘‘(A) capacity to track and analyze pro23 gram performance; and 


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1 ‘‘(B) experience with performance-based 

2 contracting and achieving project milestones 

3 and targets. 

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

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

7 benchmarks and outcome measures. 

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

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

10 than six months after receiving an application in accord11 ance with section 2052, the Secretary shall determine 

12 whether to enter into a contract for a social impact bond 

13 project with a State or local government. 

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

15 In determining whether to enter into a contract for a so16 cial impact bond project (the application for which was 

17 submitted under section 2052) the Secretary, in consulta18 tion with the Federal Interagency Council on Social Im19 pact Bonds (established by section 2056) and the head 

20 of any Federal agency administering a similar intervention 

21 or serving a population similar to that served by the 

22 project, shall consider each of the following: 

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

24 the outcome expected to be achieved if the outcomes 

25 specified in the contract are met. 


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1 ‘‘(2) The ability of the State or local govern2 ment in collaboration with the intermediary and the 

3 service providers to achieve the outcomes. 

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

5 the outcomes specified in contract are met. 

6 ‘‘(4) The savings to the State and local govern7 ments if the outcomes specific in the contract are 

8 met. 

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

10 would be conducted with respect to the contract. 

11 ‘‘(c) CONTRACT AUTHORITY.— 

12 ‘‘(1) CONTRACT REQUIREMENTS.—In accord13 ance with this section, the Secretary, in consultation 

14 with the Federal Interagency Council on Social Im15 pact Bonds and the head of any Federal agency ad16 ministering a similar intervention or serving a popu17 lation similar to that served by the project, may 

18 enter into a contract for a social impact bond project 

19 with a State or local government if the Secretary de20 termines that each of the following requirements are 

21 met: 

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

23 to achieve an outcome specified in the contract 

24 in order to receive payment. 


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

2 local government for each outcome specified is 

3 less than or equal to the value of the outcome 

4 to the Federal Government over a period not to 

5 exceed 10 years, as determined by the Sec6 retary, in consultation with the State or local 

7 government. 

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

9 exceed 10 years. 

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

11 demonstrated, through the application sub12 mitted under section 2052, that, based on prior 

13 rigorous experimental evaluations or rigorous 

14 quasi-experimental studies, the intervention can 

15 be expected to achieve each outcome specified in 

16 the contract. 

17 ‘‘(E) The State, local government, inter18 mediary, or service provider has experience rais19 ing private or philanthropic capital to fund so20 cial service investments (if applicable to the 

21 project). 

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

23 shown that each service provider has experience 

24 delivering the intervention, a similar intervenVerDate Mar 15 2010 02:17 Jun 24, 2014 Jkt 039200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H4885.IH H4885

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1 tion, or has otherwise demonstrated the exper2 tise necessary to deliver the intervention. 

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

4 State or local government only if the independent 

5 evaluator described in section 2055 determines that 

6 the social impact bond project has met the require7 ments specified in the contract and achieved an out8 come specified in the contract. 

9 ‘‘(3) LIMITATION.—The Secretary may not 

10 enter into a contract for a social impact bond project 

11 under paragraph (1) after the date that is 10 years 

12 after the date of the enactment of the Social Impact 

13 Bond Act. 

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

15 30 days after entering into a contract under this section, 

16 the Secretary shall publish a notice in the Federal Reg17 ister that includes, with regard to such contract, the fol18 lowing: 

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

20 bond project. 

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

22 project. 

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

24 by the project. 


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

2 who receive the intervention and others who may be 

3 impacted. 

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

5 purposes of each Federal, State, or local government 

6 entity, intermediary, service provider, independent 

7 evaluator, investor, or other stakeholder. 

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

9 to calculate outcome payments, the payment sched10 ule, and performance thresholds. 

11 ‘‘(7) The project budget. 

12 ‘‘(8) The project timeline. 

13 ‘‘(9) The project eligibility criteria. 

14 ‘‘(10) The evaluation design. 

15 ‘‘(11) The metrics that will be used to deter16 mine whether the outcomes have been achieved and 

17 how these metrics will be measured. 

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

19 local government of the savings to the Federal, 

20 State, and local government, on a program-by-pro21 gram basis and in the aggregate, if the contract is 

22 entered into and implemented and the outcomes are 

23 achieved. 


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1 ‘‘SEC. 2054. FEASIBILITY STUDY FUNDING. 

2 ‘‘(a) REQUESTS FOR FUNDING FOR FEASIBILITY

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

4 funding provided in section 2057 to assist States or local 

5 governments in developing feasibility studies required by 

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

7 with completing a feasibility study, a State or local govern8 ment shall submit an application for feasibility study fund9 ing containing the following information: 

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

11 social impact bond project. 

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

13 anticipated program design, target population, an 

14 estimate regarding the number of individuals to be 

15 served, and setting for the intervention. 

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

17 such intervention will produce the desired outcome. 

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

19 who receive the intervention and others who may be 

20 impacted. 

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

22 ‘‘(6) Estimates of Federal, State, and local gov23 ernment savings and other savings if the project is 

24 implemented and the outcomes are achieved. 


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1 ‘‘(7) An estimated timeline for implementation 

2 and completion of the project, which shall not exceed 

3 10 years. 

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

5 State or local government selects an intermediary to 

6 operate the project, any partnerships needed to suc7 cessfully execute the project and the ability of the 

8 intermediary to foster such partnerships. 

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

10 the feasibility study for the State or local govern11 ment to apply for social impact bond funding under 

12 section 2052. 

13 ‘‘(b) FEDERAL SELECTION OF APPLICATIONS FOR

14 FEASIBILITY STUDY.—Not later than 6 months after re15 ceiving an application for feasibility study funding under 

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

17 Federal Interagency Council on Social Impact Bonds and 

18 the head of any Federal agency administering a similar 

19 intervention or serving a population similar to that served 

20 by the project, shall select State or local government feasi21 bility study proposals for funding based on the following: 

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

23 achieve the desired outcome. 

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

25 achieved. 


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1 ‘‘(3) The potential savings to the Federal Gov2 ernment if the social impact bond project is success3 ful. 

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

5 local governments if the project is successful. 

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

7 after selecting a State or local government for feasibility 

8 study funding under this section, the Secretary shall cause 

9 to be published on the website of the Federal Interagency 

10 Council on Social Impact Bonds information explaining 

11 why a State or local government was granted feasibility 

12 study funding. 

13 ‘‘(d) FUNDING RESTRICTION.— 

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

15 Secretary may not provide feasibility study funding 

16 under this section for more than 50 percent of the 

17 estimated total cost of the feasibility study reported 

18 in the State or local government application sub19 mitted under subsection (a). 

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

21 amount appropriated under section 2057, the Sec22 retary may not use more than $10,000,000 to pro23 vide feasibility study funding to States or local gov24 ernments under this section. 


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1 ‘‘(e) SUBMISSION OF FEASIBILITY STUDY RE2 QUIRED.—Not later than six months after the receipt of 

3 feasibility study funding under this section, a State or 

4 local government receiving such funding shall complete the 

5 feasibility study and submit the study to the Federal 

6 Interagency Council on Social Impact Bonds. 

7 ‘‘SEC. 2055. EVALUATIONS. 

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

9 local government awarded a social impact bond project ap10 proved by the Secretary under this Act, the head of the 

11 relevant agency, as determined by the Federal Interagency 

12 Council on Social Impact Bonds, shall enter into a con13 tract with such State or local government to pay for the 

14 independent evaluation to determine whether the State or 

15 local government project has met an outcome specified in 

16 the contract in order for the State or local government 

17 to receive outcome payments under this subtitle. 

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

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

20 or local government unless the head determines that the 

21 evaluator is independent of the other parties to the con22 tract and has demonstrated substantial experience in con23 ducting rigorous evaluations of program effectiveness in24 cluding, where available, well-implemented randomized 


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1 controlled trials on the intervention or similar interven2 tions. 

3 ‘‘(c) METHODOLOGIES TO BE USED.—The evalua4 tion used to determine whether a State or local govern5 ment will receive outcome payments under this subtitle 

6 shall use experimental designs using random assignment 

7 or other research methodologies that allow for the strong8 est possible causal inferences when random assignment is 

9 not feasible. 

10 ‘‘(d) PROGRESS REPORT.— 

11 ‘‘(1) SUBMISSION OF REPORT.—The inde12 pendent evaluator shall— 

13 ‘‘(A) not later than two years after a 

14 project has been approved by the Secretary and 

15 biannually thereafter until the project is con16 cluded, submit to the head of the relevant agen17 cy and the Federal Interagency Council on So18 cial Impact Bonds a written report summa19 rizing the progress that has been made in 

20 achieving each outcome specified in the con21 tract; and 

22 ‘‘(B) at the scheduled time of the first out23 come payment and at the time of each subse24 quent payment, submit to the head of the rel25 evant agency and the Federal Interagency 


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1 Council on Social Impact Bonds a written re2 port that includes the results of the evaluation 

3 conducted to determine whether an outcome 

4 payment should be made along with information 

5 on the unique factors that contributed to 

6 achieving or failing to achieve the outcome, the 

7 challenges faced in attempting to achieve the 

8 outcome, and information on the improved fu9 ture delivery of this or similar interventions. 

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

11 than 30 days after receipt of the written report pur12 suant to paragraph (1)(B), the Federal Interagency 

13 Council on Social Impact Bonds shall submit such 

14 report to each committee of jurisdiction in the 

15 House of Representatives and the Senate. 

16 ‘‘(e) FINAL REPORT.— 

17 ‘‘(1) SUBMISSION OF REPORT.—Within six 

18 months after the social impact bond project is com19 pleted, the independent evaluator shall— 

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

21 undertaken pursuant to the contract with re22 gard to each outcome specified in the contract; 

23 and 

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

25 agency and the Federal Interagency Council on 


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1 Social Impact Bonds a written report that in2 cludes the results of the evaluation and the con3 clusion of the evaluator as to whether the State 

4 or local government has fulfilled each obligation 

5 of the contract, along with information on the 

6 unique factors that contributed to the success 

7 or failure of the project, the challenges faced in 

8 attempting to achieve the outcome, and infor9 mation on the improved future delivery of this 

10 or similar interventions. 

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

12 than 30 days after receipt of the written report pur13 suant to paragraph (1)(B), the Federal Interagency 

14 Council on Social Impact Bonds shall submit such 

15 report to each committee of jurisdiction in the 

16 House of Representatives and the Senate. 

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

18 the amount made available for social impact bond projects 

19 in section 2057, the Secretary may not obligate more than 

20 15 percent to evaluate the implementation and outcomes 

21 of such projects. 


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

2 IMPACT BONDS. 

3 ‘‘(a) ESTABLISHMENT.—There is established the 

4 Federal Interagency Council on Social Impact Bonds (in 

5 this section, referred to as the ‘Council’) to— 

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

7 bond projects funded by this subtitle; 

8 ‘‘(2) advise and assist the Secretary in the de9 velopment and implementation of such projects; 

10 ‘‘(3) advise the Secretary on specific pro11 grammatic and policy matter related to such 

12 projects; 

13 ‘‘(4) provide subject-matter expertise to the De14 partment of the Treasury with regard to such 

15 projects; 

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

17 that has entered into a contract with the Secretary 

18 for a social impact bond project under this subtitle 

19 and each evaluator selected by the head of the rel20 evant agency under section 2055 has access to Fed21 eral administrative data to assist the State or local 

22 government and the evaluator in evaluating the per23 formance and outcomes of the project; and 

24 ‘‘(6) address issues that will influence the fu25 ture of social impact bond projects in the United 

26 States. 


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1 ‘‘(b) COMPOSITION OF COUNCIL.—The Chair of the 

2 council shall be a member of the National Economic Coun3 cil or the Domestic Policy Council. The Council shall be 

4 composed of one designee, designated by the head of the 

5 relevant agency, from each of the following: 

6 ‘‘(1) Office of Management and Budget. 

7 ‘‘(2) Department of Labor. 

8 ‘‘(3) Department of Health and Human Serv9 ices. 

10 ‘‘(4) Social Security Administration. 

11 ‘‘(5) Department of Agriculture. 

12 ‘‘(6) Department of Justice. 

13 ‘‘(7) Department of Housing and Urban Devel14 opment. 

15 ‘‘(8) Department of Education. 

16 ‘‘(9) Department of Veterans Affairs. 

17 ‘‘(10) Department of the Treasury. 

18 ‘‘SEC. 2057. FUNDING. 

19 ‘‘(a) IN GENERAL.—Out of any money in the Treas20 ury not otherwise appropriated, there is hereby appro21 priated $300,000,000, to remain available until 10 years 

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

23 the activities authorized under this subtitle. 

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

25 under subsection (a), the Secretary may not use more than 


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1 $1,000,000 in any fiscal year to support the review, ap2 proval, and oversight of social impact bond projects, in3 cluding activities conducted by— 

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

5 Impact Bonds; and 

6 ‘‘(2) any other agency consulted by the Sec7 retary before approving a social impact bond project 

8 or a feasibility study under section 2054. 

9 ‘‘SEC. 2058. WEBSITE. 

10 ‘‘The Federal Interagency Council on Social Impact 

11 Bonds shall establish and maintain a public website that 

12 shall display the following: 

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

14 notice published regarding a social impact bond 

15 project pursuant to this subtitle. 

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

17 has entered into a contract with the Secretary for a 

18 social impact bond project, the website shall contain 

19 the following information: 

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

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

22 the project. 

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

24 served by the project. 


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1 ‘‘(D) The expected social benefits to par2 ticipants who receive the intervention and oth3 ers who may be impacted. 

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

5 and purposes of each Federal, State, or local 

6 government entity, intermediary, service pro7 vider, independent evaluator, investor, or other 

8 stakeholder. 

9 ‘‘(F) The payment terms, methodology 

10 used to calculate outcome payments, the pay11 ment schedule, and performance thresholds. 

12 ‘‘(G) The project budget. 

13 ‘‘(H) The project timeline. 

14 ‘‘(I) The project eligibility criteria. 

15 ‘‘(J) The evaluation design. 

16 ‘‘(K) The metrics used to determine wheth17 er the proposed outcomes have been achieved 

18 and how these metrics are measured. 

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

20 final reports relating to each social impact bond 

21 project. 

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

23 State, and local government, on a program-by-pro24 gram basis and in the aggregate, resulting from the 


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1 successful completion of the social impact bond 

2 project. 

3 ‘‘SEC. 2059. COMMUNITY REINVESTMENT ACT. 

4 ‘‘Section 804 of the Community Reinvestment Act of 

5 1977 (12 U.S.C. 2903) is amended by adding at the end 

6 the following: 

7 ‘‘ ‘(e) SOCIAL IMPACT BOND PROJECTS.—In assess8 ing and taking into account, under subsection (a), the 

9 record of a financial institution, the appropriate Federal 

10 financial supervisory agency shall consider, as a factor, in11 vestments made by the financial institution in social im12 pact bond projects under subtitle C of title XX of the So13 cial Security Act.’. 

14 ‘‘SEC. 2060. REGULATIONS. 

15 ‘‘The Secretary, in consultation with the Federal 

16 Interagency Council on Social Impact Bonds, may issue 

17 regulations as necessary to carry out this subtitle. 

18 ‘‘SEC. 2061. DEFINITIONS. 

19 ‘‘In this subtitle: 

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

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

22 United States Code. 

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

24 means a specific service delivered to achieve an im25 pact through a social impact bond project. 


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

2 the Secretary of the Treasury. 

3 ‘‘(4) SOCIAL IMPACT BOND PROJECT.—The 

4 term ‘social impact bond project’ means a project 

5 that finances social services using a social impact 

6 bond model. 

7 ‘‘(5) SOCIAL IMPACT BOND MODEL.—The term 

8 ‘social impact bond model’ means a method of fi9 nancing social services in which— 

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

11 or local government only if a State or local gov12 ernment achieves certain outcomes agreed upon 

13 by the State or local government and the Sec14 retary; and 

15 ‘‘(B) the State or local government coordi16 nates with service providers, investors (if appli17 cable to the project), and (if necessary) an 

18 intermediary to identify— 

19 ‘‘(i) an intervention expected to 

20 produce the outcome; 

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

22 intervention to the target population; and 

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

24 the intervention. 


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27 

•HR 4885 IH

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

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

3 each commonwealth, territory or possession of the 

4 United States, and each federally recognized Indian 

5 tribe.’’. 

Æ 


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