H. R. 3547—409 
(RESCISSION) 
SEC. 523. Of the funds made available for fiscal year 2014 
under section 3403 of Public Law 111–148, $10,000,000 are 
rescinded. 
SEC. 524. Not later than 30 days after the end of each calendar 
quarter, beginning with the first quarter of fiscal year 2013, the 
Departments of Labor, Health and Human Services and Education 
and the Social Security Administration shall provide the Commit-
tees on Appropriations of the House of Representatives and Senate 
a quarterly report on the status of balances of appropriations: 
Provided, That for balances that are unobligated and uncommitted, 
committed, and obligated but unexpended, the quarterly reports 
shall separately identify the amounts attributable to each source 
year of appropriation (beginning with fiscal year 2012, or, to the 
extent feasible, earlier fiscal years) from which balances were 
derived. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 525. (a) IN GENERAL.—The Health Education Assistance 
Loan (‘‘HEAL’’) program under title VII, part A, subpart I of the 
PHS Act, and the authority to administer such program, including 
servicing, collecting, and enforcing any loans that were made under 
such program that remain outstanding, shall be permanently trans-
ferred from the Secretary of Health and Human Services to the 
Secretary of Education no later than the end of the first fiscal 
quarter that begins after the date of enactment of this Act. 
(b) TRANSFER OF FUNCTIONS, ASSETS, AND LIABILITIES.—The 
functions, assets, and liabilities of the Secretary of Health and 
Human Services relating to such program shall be transferred 
to the Secretary of Education. 
(c) INTERDEPARTMENTAL COORDINATION
OF TRANSFER.—The 
Secretary of Health and Human Services and the Secretary of 
Education shall carry out the transfer of the HEAL program 
described in subsection (a), including the transfer of the functions, 
assets, and liabilities specified in subsection (b), in the manner 
that they determine is most appropriate. 
(d) USE OF AUTHORITIES UNDER HEA OF 1965.—In servicing, 
collecting, and enforcing the loans described in subsection (a), the 
Secretary of Education shall have available any and all authorities 
available to such Secretary in servicing, collecting, or enforcing 
a loan made, insured, or guaranteed under part B of title IV 
of the HEA of 1965. 
(e) CONFORMING AMENDMENTS.—Effective as of the date on 
which the transfer of the HEAL program under subsection (a) 
takes effect, section 719 of the PHS Act is amended by adding 
at the end the following new paragraph: 
‘‘(6) The term ‘Secretary’ means the Secretary of Edu-
cation.’’. 
(INCLUDING TRANSFER OF FUNDS) 
SEC. 526. (a) DEFINITIONS.—In this section, 
(1) ‘‘Performance Partnership Pilot’’ (or ‘‘Pilot’’) is a project 
that seeks to identify, through a demonstration, cost-effective 
strategies for providing services at the State, regional, or local 
level that—
H. R. 3547—410 
(A) involve two or more Federal programs (adminis-
tered by one or more Federal agencies)— 
(i) which have related policy goals, and 
(ii) at least one of which is administered (in whole 
or in part) by a State, local, or tribal government; 
and 
(B) achieve better results for regions, communities, 
or specific at-risk populations through making better use 
of the budgetary resources that are available for supporting 
such programs. 
(2) ‘‘To improve outcomes for disconnected youth’’ means 
to increase the rate at which individuals between the ages 
of 14 and 24 (who are low-income and either homeless, in 
foster care, involved in the juvenile justice system, unemployed, 
or not enrolled in or at risk of dropping out of an educational 
institution) achieve success in meeting educational, employ-
ment, or other key goals. 
(3) The ‘‘lead Federal administering agency’’ is the Federal 
agency, to be designated by the Director of the Office of Manage-
ment and Budget (from among the participating Federal agen-
cies that have statutory responsibility for the Federal discre-
tionary funds that will be used in a Performance Partnership 
Pilot), that will enter into and administer the particular 
Performance Partnership Agreement on behalf of that agency 
and the other participating Federal agencies. 
(b) USE
OF DISCRETIONARY FUNDS
IN FISCAL YEAR 2014.— 
Federal agencies may use Federal discretionary funds that are 
made available in this Act to carry out up to 10 Performance 
Partnership Pilots. Such Pilots shall: 
(1) be designed to improve outcomes for disconnected youth, 
and 
(2) involve Federal programs targeted on disconnected 
youth, or designed to prevent youth from disconnecting from 
school or work, that provide education, training, employment, 
and other related social services. 
(c) PERFORMANCE PARTNERSHIP AGREEMENTS.—Federal agen-
cies may use Federal discretionary funds, as authorized in sub-
section (b), to participate in a Performance Partnership Pilot only 
in accordance with the terms of a Performance Partnership Agree-
ment that— 
(1) is entered into between— 
(A) the head of the lead Federal administering agency, 
on behalf of all of the participating Federal agencies (sub-
ject to the head of the lead Federal administering agency 
having received from the heads of each of the other partici-
pating agencies their written concurrence for entering into 
the Agreement), and 
(B) the respective representatives of all of the State, 
local, or tribal governments that are participating in the 
Agreement; and 
(2) specifies, at a minimum, the following information: 
(A) the length of the Agreement (which shall not extend 
beyond September 30, 2018); 
(B) the Federal programs and federally funded services 
that are involved in the Pilot; 
(C) the Federal discretionary funds that are being used 
in the Pilot (by the respective Federal account identifier,
H. R. 3547—411 
and the total amount from such account that is being 
used in the Pilot), and the period (or periods) of availability 
for obligation (by the Federal Government) of such funds; 
(D) the non-Federal funds that are involved in the 
Pilot, by source (which may include private funds as well 
as governmental funds) and by amount; 
(E) the State, local, or tribal programs that are involved 
in the Pilot; 
(F) the populations to be served by the Pilot; 
(G) the cost-effective Federal oversight procedures that 
will be used for the purpose of maintaining the necessary 
level of accountability for the use of the Federal discre-
tionary funds; 
(H) the cost-effective State, local, or tribal oversight 
procedures that will be used for the purpose of maintaining 
the necessary level of accountability for the use of the 
Federal discretionary funds; 
(I) the outcome (or outcomes) that the Pilot is designed 
to achieve; 
(J) the appropriate, reliable, and objective outcome- 
measurement methodology that the Federal Government 
and the participating State, local, or tribal governments 
will use, in carrying out the Pilot, to determine whether 
the Pilot is achieving, and has achieved, the specified out-
comes that the Pilot is designed to achieve; 
(K) the statutory, regulatory, or administrative require-
ments related to Federal mandatory programs that are 
barriers to achieving improved outcomes of the Pilot; and 
(L) in cases where, during the course of the Pilot, 
it is determined that the Pilot is not achieving the specified 
outcomes that it is designed to achieve, 
(i) the consequences that will result from such 
deficiencies with respect to the Federal discretionary 
funds that are being used in the Pilot, and 
(ii) the corrective actions that will be taken in 
order to increase the likelihood that the Pilot, upon 
completion, will have achieved such specified outcomes. 
(d) AGENCY HEAD DETERMINATIONS.—A Federal agency may 
participate in a Performance Partnership Pilot (including by pro-
viding Federal discretionary funds that have been appropriated 
to such agency) only upon the written determination by the head 
of such agency that the agency’s participation in such Pilot— 
(1) will not result in denying or restricting the eligibility 
of any individual for any of the services that (in whole or 
in part) are funded by the agency’s programs and Federal 
discretionary funds that are involved in the Pilot, and 
(2) based on the best available information, will not other-
wise adversely affect vulnerable populations that are the recipi-
ents of such services. 
In making this determination, the head of the agency may take 
into consideration the other Federal discretionary funds that will 
be used in the Pilot as well as any non-Federal funds (including 
from private sources as well as governmental sources) that will 
be used in the Pilot. 
(e) TRANSFER AUTHORITY.—For the purpose of carrying out 
the Pilot in accordance with the Performance Partnership Agree-
ment, and subject to the written approval of the Director of the
H. R. 3547—412 
Office of Management and Budget, the head of each participating 
Federal agency may transfer Federal discretionary funds that are 
being used in the Pilot to an account of the lead Federal admin-
istering agency that includes Federal discretionary funds that are 
being used in the Pilot. Subject to the waiver authority under 
subsection (f), such transferred funds shall remain available for 
the same purposes for which such funds were originally appro-
priated: Provided, That such transferred funds shall remain avail-
able for obligation by the Federal Government until the expiration 
of the period of availability for those Federal discretionary funds 
(which are being used in the Pilot) that have the longest period 
of availability, except that any such transferred funds shall not 
remain available beyond September 30, 2018. 
(f) WAIVER AUTHORITY.—In connection with a Federal agency’s 
participation in a Performance Partnership Pilot, and subject to 
the other provisions of this section (including subsection (e)), the 
head of the Federal agency to which the Federal discretionary 
funds were appropriated may waive (in whole or in part) the applica-
tion, solely to such discretionary funds that are being used in 
the Pilot, of any statutory, regulatory, or administrative require-
ment that such agency head— 
(1) is otherwise authorized to waive (in accordance with 
the terms and conditions of such other authority), and 
(2) is not otherwise authorized to waive, provided that 
in such case the agency head shall— 
(A) not waive any requirement related to non-
discrimination, wage and labor standards, or allocation 
of funds to State and substate levels; 
(B) issue a written determination, prior to granting 
the waiver, with respect to such discretionary funds that 
the granting of such waiver for purposes of the Pilot— 
(i) is consistent with both— 
(I) the statutory purposes of the Federal pro-
gram for which such discretionary funds were 
appropriated, and 
(II) the other provisions of this section, 
including the written determination by the agency 
head issued under subsection (d); 
(ii) is necessary to achieve the outcomes of the 
Pilot as specified in the Performance Partnership 
Agreement, and is no broader in scope than is nec-
essary to achieve such outcomes; and 
(iii) will result in either— 
(I) 
realizing 
efficiencies 
by 
simplifying 
reporting burdens or reducing administrative bar-
riers with respect to such discretionary funds, or 
(II) increasing the ability of individuals to 
obtain access to services that are provided by such 
discretionary funds; and 
(C) provide at least 60 days advance written notice 
to the Committees on Appropriations and other committees 
of jurisdiction in the House of Representatives and the 
Senate. 
SEC. 527. Each Federal agency, or in the case of an agency 
with multiple bureaus, each bureau (or operating division) funded 
under this Act that has research and development expenditures