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 pro-
grams, and for other purposes. 
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Social Impact Partner-
ships to Pay for Results Act’’. 
SEC. 2. SOCIAL IMPACT PARTNERSHIPS TO PAY FOR RE-
SULTS. 
Section 403 of the Social Security Act (42 U.S.C. 603) 
is amended by adding at the end the following: 
‘‘(c) SOCIAL IMPACT DEMONSTRATION PROJECTS.— 
‘‘(1) PURPOSES.—The purposes of this subsection 
are the following: 
‘‘(A) To improve the lives of families and 
individuals in need in the United States by 
funding social programs that achieve real results. 
‘‘(B) To redirect funds away from programs 
that, based on objective data, are ineffective, and 
into programs that achieve demonstrable, meas-
urable results. 
‘‘(C) To ensure Federal funds are used effec-
tively on social services to produce positive out-
comes for both service recipients and taxpayers. 
‘‘(D) To establish the use of social impact 
partnerships to address some of our Nation’s 
most pressing problems. 
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‘‘(E) To facilitate the creation of public-pri-
vate partnerships that bundle philanthropic or 
other private resources with existing public 
spending to scale up effective social interventions 
already being implemented by private organiza-
tions, non-profits, charitable organizations, and 
State and local governments across the country. 
‘‘(F) To bring pay-for-performance to the 
social sector, allowing the United States to im-
prove the impact and effectiveness of vital social 
services programs while redirecting inefficient or 
duplicative spending. 
‘‘(G) To incorporate outcomes measurement 
and randomized controlled trials or other rig-
orous methodologies for assessing program im-
pact. 
‘‘(2) SOCIAL
IMPACT
PARTNERSHIP
APPLICA-
TION.— 
‘‘(A) NOTICE.—Not later than 1 year after 
the date of the enactment of this subsection, the 
Secretary of the Treasury, in consultation with 
the Federal Interagency Council on Social Im-
pact Partnerships, shall publish in the Federal 
Register a request for proposals from States or 
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local government for social impact partnership 
projects in accordance with this paragraph. 
‘‘(B) REQUIRED OUTCOMES FOR SOCIAL IM-
PACT PARTNERSHIP PROJECT.—To qualify as a 
social impact partnership project under this sub-
section, a project must produce 1 or more meas-
urable, clearly defined outcomes that result in so-
cial benefit and Federal savings through any of 
the following: 
‘‘(i) Increasing work and earnings by 
individuals who have been unemployed in 
the United States for more than 6 consecu-
tive months. 
‘‘(ii) Increasing employment and earn-
ings of individuals who have attained 16 
years of age but not 25 years of age. 
‘‘(iii) Increasing employment among 
individuals receiving Federal disability ben-
efits. 
‘‘(iv) Reducing the dependence of low- 
income families on Federal means-tested 
benefits. 
‘‘(v) Improving rates of high school 
graduation. 
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‘‘(vi) Reducing teen and unplanned 
pregnancies. 
‘‘(vii) Improving birth outcomes and 
early childhood health and development 
among low-income families and individuals. 
‘‘(viii) Reducing rates of asthma, dia-
betes, or other preventable diseases among 
low-income families and individuals to re-
duce the utilization of emergency and other 
high-cost care. 
‘‘(ix) Increasing the proportion of chil-
dren living in 2-parent families. 
‘‘(x) Reducing incidences and adverse 
consequences of child abuse and neglect. 
‘‘(xi) Reducing the number of youth in 
foster care by increasing adoptions, perma-
nent guardianship arrangements, reunifica-
tion, or placement with a fit and willing 
relative, or by avoiding placing children in 
foster care by ensuring they can be cared for 
safely in their own homes. 
‘‘(xii) Reducing the number of children 
and youth in foster care residing in group 
homes, child care institutions, agency-oper-
ated foster homes, or other non-family foster 
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homes, unless it is determined that it is in 
the interest of the child’s long-term health, 
safety, or psychological well-being to not be 
placed in a family foster home. 
‘‘(xiii) Reducing the number of chil-
dren returning to foster care. 
‘‘(xiv) Reducing recidivism among ju-
veniles, individuals released from prison, or 
other high-risk populations. 
‘‘(xv) Reducing the rate of homelessness 
among our most vulnerable populations. 
‘‘(xvi) Improving the health and well- 
being of those with mental, emotional, and 
behavioral health needs. 
‘‘(xvii) Improving the educational out-
comes of special-needs or low-income chil-
dren. 
‘‘(xviii) Improving the employment 
and well-being of returning United States 
military members. 
‘‘(xix) Increasing the financial sta-
bility of low-income families. 
‘‘(xx) Increasing the independence and 
employability of individuals who are phys-
ically or mentally disabled. 
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‘‘(xxi) Other measurable outcomes de-
fined by the State or local government that 
result in positive social outcomes and Fed-
eral savings. 
‘‘(C) APPLICATION REQUIRED.—The notice 
described in subparagraph (A) shall require a 
State or local government to submit an applica-
tion for the social impact partnership project 
that addresses the following: 
‘‘(i) The outcome goals of the project. 
‘‘(ii) A description of each intervention 
in the project and anticipated outcomes of 
the intervention. 
‘‘(iii) Rigorous evidence demonstrating 
that the intervention can be expected to 
produce the desired outcomes. 
‘‘(iv) The target population that will 
be served by the project. 
‘‘(v) The expected social benefits to 
participants who receive the intervention 
and others who may be impacted. 
‘‘(vi) Projected Federal, State, and 
local government costs and other costs to 
conduct the project. 
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‘‘(vii) Projected Federal, State, and 
local government savings and other savings, 
including an estimate of the savings to the 
Federal Government, on a program-by-pro-
gram basis and in the aggregate, if the 
project is implemented and the outcomes are 
achieved. 
‘‘(viii) If savings resulting from the 
successful completion of the project are esti-
mated to accrue to the State or local govern-
ment, the likelihood of the State or local 
government to realize those savings. 
‘‘(ix) A plan for delivering the inter-
vention through a social impact partnership 
model. 
‘‘(x) A description of the expertise of 
each service provider that will administer 
the intervention, including a summary of 
the experience of the service provider in de-
livering the proposed intervention or a 
similar intervention, or demonstrating that 
the service provider has the expertise nec-
essary to deliver the proposed intervention. 
‘‘(xi) An explanation of the experience 
of the State or local government, the inter-
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mediary, or the service provider in raising 
private and philanthropic capital to fund 
social service investments. 
‘‘(xii) The detailed roles and respon-
sibilities of each entity involved in the 
project, including any State or local govern-
ment entity, intermediary, service provider, 
independent evaluator, investor, or other 
stakeholder. 
‘‘(xiii) A summary of the experience of 
the service provider delivering the proposed 
intervention or a similar intervention, or a 
summary demonstrating the service pro-
vider has the expertise necessary to deliver 
the proposed intervention. 
‘‘(xiv) A summary of the unmet need 
in the area where the intervention will be 
delivered or among the target population 
who will receive the intervention. 
‘‘(xv) The proposed payment terms, the 
methodology used to calculate outcome pay-
ments, the payment schedule, and perform-
ance thresholds. 
‘‘(xvi) The project budget. 
‘‘(xvii) The project timeline. 
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‘‘(xviii) The criteria used to determine 
the eligibility of an individual for the 
project, including how selected populations 
will be identified, how they will be referred 
to the project, and how they will be enrolled 
in the project. 
‘‘(xix) The evaluation design. 
‘‘(xx) The metrics that will be used to 
determine whether the outcomes have been 
achieved and how the metrics will be meas-
ured. 
‘‘(xxi) An explanation of how the 
metrics used to determine whether the out-
comes have been achieved are independent, 
objective indicators of impact and are not 
subject to manipulation by the service pro-
vider, intermediary, or investor. 
‘‘(xxii) A summary explaining the 
independence of the evaluator from the other 
entities involved in the project and the eval-
uator’s experience in conducting rigorous 
evaluations of program effectiveness includ-
ing, where available, well-implemented ran-
domized controlled trials on the intervention 
or similar interventions. 
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‘‘(xxiii) The capacity of the service 
provider to deliver the intervention to the 
number of participants the State or local 
government proposes to serve in the project. 
‘‘(D) PROJECT INTERMEDIARY INFORMATION 
REQUIRED.—The application described in sub-
paragraph (C) shall also contain the following 
information about any intermediary for the so-
cial impact partnership project (whether an 
intermediary is a service provider or other enti-
ty): 
‘‘(i) Experience and capacity for pro-
viding or facilitating the provision of the 
type of intervention proposed. 
‘‘(ii) The mission and goals. 
‘‘(iii) Information on whether the 
intermediary is already working with serv-
ice providers that provide this intervention 
or an explanation of the capacity of the 
intermediary to begin working with service 
providers to provide the intervention. 
‘‘(iv) Experience working in a collabo-
rative environment across government and 
nongovernmental entities. 
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‘‘(v) Previous experience collaborating 
with public or private entities to implement 
evidence-based programs. 
‘‘(vi) Ability to raise or provide fund-
ing to cover operating costs (if applicable to 
the project). 
‘‘(vii) Capacity and infrastructure to 
track outcomes and measure results, includ-
ing— 
‘‘(I) capacity to track and analyze 
program performance and assess pro-
gram impact; and 
‘‘(II) experience with perform-
ance-based awards or performance- 
based 
contracting 
and 
achieving 
project milestones and targets. 
‘‘(viii) Role in delivering the interven-
tion. 
‘‘(ix) How the intermediary would 
monitor program success, including a de-
scription of the interim benchmarks and 
outcome measures. 
‘‘(E) 
FEASIBILITY
STUDIES
FUNDED 
THROUGH
OTHER
SOURCES.—The notice de-
scribed in subparagraph (A) shall permit a State 
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or local government to submit an application for 
social impact partnership funding that contains 
information from a feasibility study developed 
for purposes other than applying for funding 
under this subsection. 
‘‘(3) AWARDING
SOCIAL
IMPACT
PARTNERSHIP 
AGREEMENTS.— 
‘‘(A) 
TIMELINE
IN
AWARDING
AGREE-
MENT.—Not later than 6 months after receiving 
an application in accordance with paragraph 
(2), the Secretary, in consultation with the Fed-
eral Interagency Council on Social Impact Part-
nerships, shall determine whether to enter into 
an agreement for a social impact partnership 
project with a State or local government. 
‘‘(B) 
CONSIDERATIONS
IN
AWARDING 
AGREEMENT.—In determining whether to enter 
into an agreement for a social impact partner-
ship project (the application for which was sub-
mitted under paragraph (2)) the Secretary, in 
consultation with the Federal Interagency Coun-
cil on Social Impact Partnerships (established by 
paragraph (6)) and the head of any Federal 
agency administering a similar intervention or 
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serving a population similar to that served by 
the project, shall consider each of the following: 
‘‘(i) The recommendations made by the 
Commission on Social Impact Partnerships. 
‘‘(ii) The value to the Federal Govern-
ment of the outcomes expected to be achieved 
if the outcomes specified in the agreement 
are achieved. 
‘‘(iii) The likelihood, based on evidence 
provided in the application and other evi-
dence, that the State or local government in 
collaboration with the intermediary and the 
service providers will achieve the outcomes. 
‘‘(iv) The savings to the Federal Gov-
ernment if the outcomes specified in the 
agreement are achieved. 
‘‘(v) The savings to the State and local 
governments if the outcomes specified in the 
agreement are achieved. 
‘‘(vi) The expected quality of the eval-
uation that would be conducted with respect 
to the agreement. 
‘‘(C) AGREEMENT AUTHORITY.— 
‘‘(i) AGREEMENT REQUIREMENTS.—In 
accordance with this paragraph, the Sec-
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retary, in consultation with the Federal 
Interagency Council on Social Impact Part-
nerships and the head of any Federal agen-
cy administering a similar intervention or 
serving a population similar to that served 
by the project, may enter into an agreement 
for a social impact partnership project with 
a State or local government if the Secretary, 
in consultation with the Federal Inter-
agency Council on Social Impact Partner-
ships, determines that each of the following 
requirements are met: 
‘‘(I) The State or local govern-
ment agrees to achieve 1 or more out-
comes specified in the agreement in 
order to receive payment. 
‘‘(II) The Federal payment to the 
State or local government for each out-
come specified is less than or equal to 
the value of the outcome to the Federal 
Government over a period not to exceed 
10 years, as determined by the Sec-
retary, in consultation with the State 
or local government. 
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‘‘(III) The duration of the project 
does not exceed 10 years. 
‘‘(IV) The State or local govern-
ment has demonstrated, through the 
application submitted under para-
graph (2), that, based on prior rig-
orous experimental evaluations or rig-
orous quasi-experimental studies, the 
intervention can be expected to achieve 
each outcome specified in the agree-
ment. 
‘‘(V) The State, local government, 
intermediary, or service provider has 
experience raising private or philan-
thropic capital to fund social service 
investments 
(if 
applicable 
to 
the 
project). 
‘‘(VI) The State or local govern-
ment has shown that each service pro-
vider has experience delivering the 
intervention, a similar intervention, or 
has otherwise demonstrated the exper-
tise necessary to deliver the interven-
tion. 
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‘‘(ii) PAYMENT.—The Secretary shall 
pay the State or local government only if 
the independent evaluator described in 
paragraph (5) determines that the social 
impact partnership project has met the re-
quirements specified in the agreement and 
achieved an outcome specified in the agree-
ment. 
‘‘(D) NOTICE OF AGREEMENT AWARD.—Not 
later than 30 days after entering into an agree-
ment under this paragraph, the Secretary shall 
publish a notice in the Federal Register that in-
cludes, with regard to the agreement, the fol-
lowing: 
‘‘(i) The outcome goals of the social im-
pact partnership project. 
‘‘(ii) A description of each intervention 
in the project. 
‘‘(iii) The target population that will 
be served by the project. 
‘‘(iv) The expected social benefits to 
participants who receive the intervention 
and others who may be impacted. 
‘‘(v) The detailed roles, responsibilities, 
and purposes of each Federal, State, or local 
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government entity, intermediary, service 
provider, independent evaluator, investor, 
or other stakeholder. 
‘‘(vi) The payment terms, the method-
ology used to calculate outcome payments, 
the payment schedule, and performance 
thresholds. 
‘‘(vii) The project budget. 
‘‘(viii) The project timeline. 
‘‘(ix) The project eligibility criteria. 
‘‘(x) The evaluation design. 
‘‘(xi) The metrics that will be used to 
determine whether the outcomes have been 
achieved and how these metrics will be 
measured. 
‘‘(xii) The estimate of the savings to 
the Federal, State, and local government, on 
a program-by-program basis and in the ag-
gregate, if the agreement is entered into and 
implemented and the outcomes are achieved. 
‘‘(E) AUTHORITY
TO
TRANSFER
ADMINIS-
TRATION OF AGREEMENT.—The Secretary may 
transfer to the head of another Federal agency 
the authority to administer (including making 
payments under) an agreement entered into 
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under subparagraph (C), and any funds nec-
essary to do so. 
‘‘(4) FEASIBILITY STUDY FUNDING.— 
‘‘(A) REQUESTS FOR FUNDING FOR FEASI-
BILITY STUDIES.—The Secretary shall reserve a 
portion of the amount reserved to carry out this 
subsection to assist States or local governments 
in developing feasibility studies to apply for so-
cial impact partnership funding under para-
graph (2). To be eligible to receive funding to as-
sist with completing a feasibility study, a State 
or local government shall submit an application 
for feasibility study funding addressing the fol-
lowing: 
‘‘(i) A description of the outcome goals 
of the social impact partnership project. 
‘‘(ii) A description of the intervention, 
including anticipated program design, tar-
get population, an estimate regarding the 
number of individuals to be served, and set-
ting for the intervention. 
‘‘(iii) Evidence to support the likeli-
hood that the intervention will produce the 
desired outcomes. 
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‘‘(iv) A description of the potential 
metrics to be used. 
‘‘(v) The expected social benefits to 
participants who receive the intervention 
and others who may be impacted. 
‘‘(vi) Estimated costs to conduct the 
project. 
‘‘(vii) Estimates of Federal, State, and 
local government savings and other savings 
if the project is implemented and the out-
comes are achieved. 
‘‘(viii) An estimated timeline for im-
plementation and completion of the project, 
which shall not exceed 10 years. 
‘‘(ix) With respect to a project for 
which the State or local government selects 
an intermediary to operate the project, any 
partnerships needed to successfully execute 
the project and the ability of the inter-
mediary to foster the partnerships. 
‘‘(x) The expected resources needed to 
complete the feasibility study for the State 
or local government to apply for social im-
pact partnership funding under paragraph 
(2). 
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‘‘(B) FEDERAL
SELECTION
OF
APPLICA-
TIONS FOR FEASIBILITY STUDY.—Not later than 
6 months after receiving an application for feasi-
bility study funding under subparagraph (A), 
the Secretary, in consultation with the Federal 
Interagency Council on Social Impact Partner-
ships and the head of any Federal agency ad-
ministering a similar intervention or serving a 
population similar to that served by the project, 
shall select State or local government feasibility 
study proposals for funding based on the fol-
lowing: 
‘‘(i) The recommendations made by the 
Commission on Social Impact Partnerships. 
‘‘(ii) The likelihood that the proposal 
will achieve the desired outcomes. 
‘‘(iii) The value of the outcomes ex-
pected to be achieved. 
‘‘(iv) The potential savings to the Fed-
eral Government if the social impact part-
nership project is successful. 
‘‘(v) The potential savings to the State 
and local governments if the project is suc-
cessful. 
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‘‘(C) PUBLIC DISCLOSURE.—Not later than 
30 days after selecting a State or local govern-
ment for feasibility study funding under this 
paragraph, the Secretary shall cause to be pub-
lished on the website of the Federal Interagency 
Council on Social Impact Partnerships informa-
tion explaining why a State or local government 
was granted feasibility study funding. 
‘‘(D) FUNDING RESTRICTION.— 
‘‘(i) 
FEASIBILITY
STUDY
RESTRIC-
TION.—The Secretary may not provide fea-
sibility study funding under this paragraph 
for more than 50 percent of the estimated 
total cost of the feasibility study reported in 
the State or local government application 
submitted under subparagraph (A). 
‘‘(ii) AGGREGATE
RESTRICTION.—Of 
the total amount reserved to carry out this 
subsection, the Secretary may not use more 
than $10,000,000 to provide feasibility 
study funding to States or local govern-
ments under this paragraph. 
‘‘(iii) NO GUARANTEE OF FUNDING.— 
The Secretary shall have the option to 
award no funding under this paragraph. 
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ment to receive outcome payments under this 
subsection. 
‘‘(B) EVALUATOR
QUALIFICATIONS.—The 
head of the relevant agency may not enter into 
an agreement with a State or local government 
unless the head determines that the evaluator is 
independent of the other parties to the agreement 
and has demonstrated substantial experience in 
conducting rigorous evaluations of program effec-
tiveness including, where available and appro-
priate, well-implemented randomized controlled 
trials on the intervention or similar interven-
tions. 
‘‘(C) METHODOLOGIES TO BE USED.—The 
evaluation used to determine whether a State or 
local government will receive outcome payments 
under this subsection shall use experimental de-
signs using random assignment or other reliable, 
evidence-based research methodologies, as cer-
tified by the Federal Interagency Council on So-
cial Impact Partnerships, that allow for the 
strongest possible causal inferences when random 
assignment is not feasible. 
‘‘(D) PROGRESS REPORT.— 
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‘‘(i) SUBMISSION
OF
REPORT.—The 
independent evaluator shall— 
‘‘(I) not later than 2 years after a 
project has been approved by the Sec-
retary and biannually thereafter until 
the project is concluded, submit to the 
head of the relevant agency and the 
Federal Interagency Council on Social 
Impact Partnerships a written report 
summarizing the progress that has 
been made in achieving each outcome 
specified in the agreement; and 
‘‘(II) before the scheduled time of 
the first outcome payment and before 
the scheduled time of each subsequent 
payment, submit to the head of the rel-
evant agency and the Federal Inter-
agency Council on Social Impact Part-
nerships a written report that includes 
the results of the evaluation conducted 
to determine whether an outcome pay-
ment should be made along with infor-
mation on the unique factors that con-
tributed to achieving or failing to 
achieve the outcome, the challenges 
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faced in attempting to achieve the out-
come, and information on the im-
proved future delivery of this or simi-
lar interventions. 
‘‘(ii) SUBMISSION TO CONGRESS.—Not 
later than 30 days after receipt of the writ-
ten report pursuant to clause (i)(II), the 
Federal Interagency Council on Social Im-
pact Partnerships shall submit the report to 
each committee of jurisdiction in the House 
of Representatives and the Senate. 
‘‘(E) FINAL REPORT.— 
‘‘(i) SUBMISSION OF REPORT.—Within 
6 months after the social impact partner-
ship project is completed, the independent 
evaluator shall— 
‘‘(I) evaluate the effects of the ac-
tivities undertaken pursuant to the 
agreement with regard to each outcome 
specified in the agreement; and 
‘‘(II) submit to the head of the rel-
evant agency and the Federal Inter-
agency Council on Social Impact Part-
nerships a written report that includes 
the results of the evaluation and the 
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conclusion of the evaluator as to wheth-
er the State or local government has 
fulfilled each obligation of the agree-
ment, along with information on the 
unique factors that contributed to the 
success or failure of the project, the 
challenges faced in attempting to 
achieve the outcome, and information 
on the improved future delivery of this 
or similar interventions. 
‘‘(ii) SUBMISSION TO CONGRESS.—Not 
later than 30 days after receipt of the writ-
ten report pursuant to clause (i)(II), the 
Federal Interagency Council on Social Im-
pact Partnerships shall submit the report to 
each committee of jurisdiction in the House 
of Representatives and the Senate. 
‘‘(F) LIMITATION
ON
COST
OF
EVALUA-
TIONS.—Of the amount reserved under this sub-
section for social impact partnership projects, the 
Secretary may not obligate more than 15 percent 
to evaluate the implementation and outcomes of 
the projects. 
‘‘(G) DELEGATION
OF
AUTHORITY.—The 
Secretary may transfer to the head of another 
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Federal agency the authorities provided in this 
paragraph and any funds necessary to exercise 
the authorities. 
‘‘(6) FEDERAL INTERAGENCY COUNCIL ON SOCIAL 
IMPACT PARTNERSHIPS.— 
‘‘(A) ESTABLISHMENT.—There is estab-
lished the Federal Interagency Council on Social 
Impact Partnerships (in this paragraph referred 
to as the ‘Council’) to— 
‘‘(i) coordinate the efforts of social im-
pact partnership projects funded under this 
subsection; 
‘‘(ii) advise and assist the Secretary in 
the development and implementation of the 
projects; 
‘‘(iii) advise the Secretary on specific 
programmatic and policy matter related to 
the projects; 
‘‘(iv) provide subject-matter expertise 
to the Secretary with regard to the projects; 
‘‘(v) ensure that each State or local 
government that has entered into an agree-
ment with the Secretary for a social impact 
partnership project under this subsection 
and each evaluator selected by the head of 
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the relevant agency under paragraph (5) 
has access to Federal administrative data to 
assist the State or local government and the 
evaluator in evaluating the performance 
and outcomes of the project; 
‘‘(vi) address issues that will influence 
the future of social impact partnership 
projects in the United States; 
‘‘(vii) provide guidance to the executive 
branch on the future of social impact part-
nership projects in the United States; 
‘‘(viii) review State and local govern-
ment applications for social impact part-
nerships to ensure that agreements will only 
be awarded under this subsection when rig-
orous, independent data and reliable, evi-
dence-based research methodologies support 
the conclusion that an agreement will yield 
savings to the Federal Government if the 
project outcomes are achieved before the ap-
plications are approved by the Secretary; 
‘‘(ix) certify, in the case of each ap-
proved social impact partnership, that the 
project will yield a projected savings to the 
Federal Government if the project outcomes 
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are achieved, and coordinate with the rel-
evant Federal agency to produce an after- 
action accounting once the project is com-
plete to determine the actual Federal sav-
ings realized, and the extent to which actual 
savings aligned with projected savings; and 
‘‘(x) provide oversight of the actions of 
the Secretary and other Federal officials 
under this subsection and report periodi-
cally to Congress and the public on the im-
plementation of this subsection. 
‘‘(B) 
COMPOSITION
OF
COUNCIL.—The 
Council shall have 11 members, as follows: 
‘‘(i) CHAIR.—The Chair of the Council 
shall be the Director of the Office of Man-
agement and Budget. 
‘‘(ii) OTHER MEMBERS.—The head of 
each of the following entities shall designate 
1 officer or employee of the entity to be a 
Council member: 
‘‘(I) The Department of Labor. 
‘‘(II) The Department of Health 
and Human Services. 
‘‘(III) The Social Security Ad-
ministration. 
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‘‘(IV) The Department of Agri-
culture. 
‘‘(V) The Department of Justice. 
‘‘(VI) The Department of Housing 
and Urban Development. 
‘‘(VII) The Department of Edu-
cation. 
‘‘(VIII) The Department of Vet-
erans Affairs. 
‘‘(IX) The Department of the 
Treasury. 
‘‘(X) The Corporation for Na-
tional and Community Service. 
‘‘(7) COMMISSION ON SOCIAL IMPACT PARTNER-
SHIPS.— 
‘‘(A) ESTABLISHMENT.—There is estab-
lished the Commission on Social Impact Part-
nerships (in this paragraph referred to as the 
‘Commission’). 
‘‘(B) DUTIES.—The duties of the Commis-
sion shall be to— 
‘‘(i) assist the Secretary and the Fed-
eral Interagency Council on Social Impact 
Partnerships in reviewing applications for 
funding under this subsection; 
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‘‘(ii) make recommendations to the 
Secretary and the Federal Interagency 
Council on Social Impact Partnerships re-
garding the funding of social impact part-
nership agreements and feasibility studies; 
and 
‘‘(iii) provide other assistance and in-
formation as requested by the Secretary or 
the Federal Interagency Council on Social 
Impact Partnerships. 
‘‘(C) COMPOSITION.—The Commission shall 
be composed of 9 members, of whom— 
‘‘(i) 1 shall be appointed by the Presi-
dent, who will serve as the Chair of the 
Commission; 
‘‘(ii) 1 shall be appointed by the Ma-
jority Leader of the Senate; 
‘‘(iii) 1 shall be appointed by the Mi-
nority Leader of the Senate; 
‘‘(iv) 1 shall be appointed by the 
Speaker of the House of Representatives; 
‘‘(v) 1 shall be appointed by the Minor-
ity Leader of the House of Representatives; 
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‘‘(vi) 1 shall be appointed by the 
Chairman of the Committee on Finance of 
the Senate; 
‘‘(vii) 1 shall be appointed by the 
ranking member of the Committee on Fi-
nance of the Senate; 
‘‘(viii) 1 member shall be appointed by 
the Chairman of the Committee on Ways 
and Means of the House of Representatives; 
and 
‘‘(ix) 1 shall be appointed by the rank-
ing member of the Committee on Ways and 
Means of the House of Representatives. 
‘‘(D) 
QUALIFICATIONS
OF
COMMISSION 
MEMBERS.—The members of the Commission 
shall— 
‘‘(i) be experienced in finance, econom-
ics, pay for performance, or program eval-
uation; 
‘‘(ii) have relevant professional or per-
sonal experience in a field related to 1 or 
more of the outcomes listed in this sub-
section; or 
‘‘(iii) be qualified to review applica-
tions for social impact partnership projects 
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to determine whether the proposed metrics 
and evaluation methodologies are appro-
priately rigorous and reliant upon inde-
pendent data and evidence-based research. 
‘‘(E) TIMING OF APPOINTMENTS.—The ap-
pointments of the members of the Commission 
shall be made not later than 120 days after the 
date of the enactment of this subsection, or, in 
the event of a vacancy, not later than 90 days 
after the date the vacancy arises. If a member of 
Congress fails to appoint a member by that date, 
the President may select a member of the Presi-
dent’s choice on behalf of the member of Congress. 
Notwithstanding the preceding sentence, if not 
all appointments have been made to the Commis-
sion as of that date, the Commission may oper-
ate with no fewer than 5 members until all ap-
pointments have been made. 
‘‘(F) TERM OF APPOINTMENTS.— 
‘‘(i) IN GENERAL.—The members ap-
pointed under subparagraph (C) shall serve 
as follows: 
‘‘(I) 3 members shall serve for 2 
years. 
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‘‘(II) 3 members shall serve for 3 
years. 
‘‘(III) 3 members (1 of which 
shall be Chair of the Commission ap-
pointed by the President) shall serve 
for 4 years. 
‘‘(ii) ASSIGNMENT
OF
TERMS.—The 
Commission shall designate the term length 
that each member appointed under subpara-
graph (C) shall serve by unanimous agree-
ment. In the event that unanimous agree-
ment cannot be reached, term lengths shall 
be assigned to the members by a random 
process. 
‘‘(G) VACANCIES.—Subject to subparagraph 
(E), in the event of a vacancy in the Commis-
sion, whether due to the resignation of a member, 
the expiration of a member’s term, or any other 
reason, the vacancy shall be filled in the manner 
in which the original appointment was made 
and shall not affect the powers of the Commis-
sion. 
‘‘(H) APPOINTMENT
POWER.—Members of 
the Commission appointed under subparagraph 
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(C) shall not be subject to confirmation by the 
Senate. 
‘‘(8) LIMITATION
ON
USE
OF
FUNDS.—Of the 
amounts reserved to carry out this subsection, the Sec-
retary may not use more than $2,000,000 in any fis-
cal year to support the review, approval, and over-
sight of social impact partnership projects, including 
activities conducted by— 
‘‘(A) the Federal Interagency Council on 
Social Impact Partnerships; and 
‘‘(B) any other agency consulted by the Sec-
retary before approving a social impact partner-
ship project or a feasibility study under para-
graph (4). 
‘‘(9) NO
FEDERAL
FUNDING
FOR
CREDIT
EN-
HANCEMENTS.—No amount reserved to carry out this 
subsection may be used to provide any insurance, 
guarantee, or other credit enhancement to a State or 
local government under which a Federal payment 
would be made to a State or local government as the 
result of a State or local government failing to 
achieve an outcome specified in a contract. 
‘‘(10) AVAILABILITY
OF
FUNDS.—Amounts re-
served to carry out this subsection shall remain avail-
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able until 10 years after the date of the enactment of 
this subsection. 
‘‘(11) 
WEBSITE.—The 
Federal 
Interagency 
Council on Social Impact Partnerships shall establish 
and maintain a public website that shall display the 
following: 
‘‘(A) A copy of, or method of accessing, each 
notice published regarding a social impact part-
nership project pursuant to this subsection. 
‘‘(B) A copy of each feasibility study funded 
under this subsection. 
‘‘(C) For each State or local government 
that has entered into an agreement with the Sec-
retary for a social impact partnership project, 
the website shall contain the following informa-
tion: 
‘‘(i) The outcome goals of the project. 
‘‘(ii) A description of each intervention 
in the project. 
‘‘(iii) The target population that will 
be served by the project. 
‘‘(iv) The expected social benefits to 
participants who receive the intervention 
and others who may be impacted. 
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‘‘(v) The detailed roles, responsibilities, 
and purposes of each Federal, State, or local 
government entity, intermediary, service 
provider, independent evaluator, investor, 
or other stakeholder. 
‘‘(vi) The payment terms, methodology 
used to calculate outcome payments, the 
payment schedule, and performance thresh-
olds. 
‘‘(vii) The project budget. 
‘‘(viii) The project timeline. 
‘‘(ix) The project eligibility criteria. 
‘‘(x) The evaluation design. 
‘‘(xi) The metrics used to determine 
whether the proposed outcomes have been 
achieved and how these metrics are meas-
ured. 
‘‘(D) A copy of the progress reports and the 
final reports relating to each social impact part-
nership project. 
‘‘(E) An estimate of the savings to the Fed-
eral, State, and local government, on a program- 
by-program basis and in the aggregate, resulting 
from the successful completion of the social im-
pact partnership project. 
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‘‘(12) REGULATIONS.—The Secretary, in con-
sultation with the Federal Interagency Council on So-
cial Impact Partnerships, may issue regulations as 
necessary to carry out this subsection. 
‘‘(13) DEFINITIONS.—In this subsection: 
‘‘(A) AGENCY.—The term ‘agency’ has the 
meaning given that term in section 551 of title 
5, United States Code. 
‘‘(B) INTERVENTION.—The term ‘interven-
tion’ means a specific service delivered to achieve 
an impact through a social impact partnership 
project. 
‘‘(C) SECRETARY.—The term ‘Secretary’ 
means the Secretary of the Treasury. 
‘‘(D) 
SOCIAL
IMPACT
PARTNERSHIP 
PROJECT.—The term ‘social impact partnership 
project’ means a project that finances social serv-
ices using a social impact partnership model. 
‘‘(E) 
SOCIAL
IMPACT
PARTNERSHIP 
MODEL.—The term ‘social impact partnership 
model’ means a method of financing social serv-
ices in which— 
‘‘(i) Federal funds are awarded to a 
State or local government only if a State or 
local government achieves certain outcomes 
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agreed on by the State or local government 
and the Secretary; and 
‘‘(ii) the State or local government co-
ordinates with service providers, investors 
(if applicable to the project), and (if nec-
essary) an intermediary to identify— 
‘‘(I) an intervention expected to 
produce the outcome; 
‘‘(II) a service provider to deliver 
the intervention to the target popu-
lation; and 
‘‘(III) investors to fund the deliv-
ery of the intervention. 
‘‘(F) STATE.—The term ‘State’ means each 
State of the United States, the District of Colum-
bia, each commonwealth, territory or possession 
of the United States, and each federally recog-
nized Indian tribe. 
‘‘(14) FUNDING.—Of the amounts made available 
to carry out subsection (b) for fiscal year 2017, the 
Secretary shall reserve $100,000,000 to carry out this 
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 
public and private sectors to improve our Na-
tion’s social programs, and for other purposes. 
JUNE 10, 2016 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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