[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5170 Reported in House (RH)]

<DOC>





                                                 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]


_______________________________________________________________________

                                 A BILL


 
 To encourage and support partnerships between the public and private 
    sectors to improve our Nation's social programs, and for other 
                               purposes.


 


    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Social Impact Partnerships to Pay 
for Results Act''.

SEC. 2. SOCIAL IMPACT PARTNERSHIPS TO PAY FOR RESULTS.

    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, measurable results.
                    ``(C) To ensure Federal funds are used effectively 
                on social services to produce positive outcomes 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.
                    ``(E) To facilitate the creation of public-private 
                partnerships that bundle philanthropic or other private 
                resources with existing public spending to scale up 
                effective social interventions already being 
                implemented by private organizations, 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 improve 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 rigorous 
                methodologies for assessing program impact.
            ``(2) Social impact partnership application.--
                    ``(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 Impact Partnerships, 
                shall publish in the Federal Register a request for 
                proposals from States or local government for social 
                impact partnership projects in accordance with this 
                paragraph.
                    ``(B) Required outcomes for social impact 
                partnership project.--To qualify as a social impact 
                partnership project under this subsection, a project 
                must produce 1 or more measurable, clearly defined 
                outcomes that result in social 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 consecutive 
                        months.
                            ``(ii) Increasing employment and earnings 
                        of individuals who have attained 16 years of 
                        age but not 25 years of age.
                            ``(iii) Increasing employment among 
                        individuals receiving Federal disability 
                        benefits.
                            ``(iv) Reducing the dependence of low-
                        income families on Federal means-tested 
                        benefits.
                            ``(v) Improving rates of high school 
                        graduation.
                            ``(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, 
                        diabetes, or other preventable diseases among 
                        low-income families and individuals to reduce 
                        the utilization of emergency and other high-
                        cost care.
                            ``(ix) Increasing the proportion of 
                        children 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, permanent 
                        guardianship arrangements, reunification, 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-operated foster 
                        homes, or other non-family foster 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 children 
                        returning to foster care.
                            ``(xiv) Reducing recidivism among 
                        juveniles, 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 outcomes 
                        of special-needs or low-income children.
                            ``(xviii) Improving the employment and 
                        well-being of returning United States military 
                        members.
                            ``(xix) Increasing the financial stability 
                        of low-income families.
                            ``(xx) Increasing the independence and 
                        employability of individuals who are physically 
                        or mentally disabled.
                            ``(xxi) Other measurable outcomes defined 
                        by the State or local government that result in 
                        positive social outcomes and Federal savings.
                    ``(C) Application required.--The notice described 
                in subparagraph (A) shall require a State or local 
                government to submit an application 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.
                            ``(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-program 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 
                        estimated to accrue to the State or local 
                        government, the likelihood of the State or 
                        local government to realize those savings.
                            ``(ix) A plan for delivering the 
                        intervention 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 
                        delivering the proposed intervention or a 
                        similar intervention, or demonstrating that the 
                        service provider has the expertise necessary to 
                        deliver the proposed intervention.
                            ``(xi) An explanation of the experience of 
                        the State or local government, the 
                        intermediary, or the service provider in 
                        raising private and philanthropic capital to 
                        fund social service investments.
                            ``(xii) The detailed roles and 
                        responsibilities of each entity involved in the 
                        project, including any State or local 
                        government 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 provider 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 payments, 
                        the payment schedule, and performance 
                        thresholds.
                            ``(xvi) The project budget.
                            ``(xvii) The project timeline.
                            ``(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 measured.
                            ``(xxi) An explanation of how the metrics 
                        used to determine whether the outcomes have 
                        been achieved are independent, objective 
                        indicators of impact and are not subject to 
                        manipulation by the service provider, 
                        intermediary, or investor.
                            ``(xxii) A summary explaining the 
                        independence of the evaluator from the other 
                        entities involved in the project and the 
                        evaluator's experience in conducting rigorous 
                        evaluations of program effectiveness including, 
                        where available, well-implemented randomized 
                        controlled trials on the intervention or 
                        similar interventions.
                            ``(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 subparagraph (C) shall 
                also contain the following information about any 
                intermediary for the social impact partnership project 
                (whether an intermediary is a service provider or other 
                entity):
                            ``(i) Experience and capacity for providing 
                        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 service 
                        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 
                        collaborative environment across government and 
                        nongovernmental entities.
                            ``(v) Previous experience collaborating 
                        with public or private entities to implement 
                        evidence-based programs.
                            ``(vi) Ability to raise or provide funding 
                        to cover operating costs (if applicable to the 
                        project).
                            ``(vii) Capacity and infrastructure to 
                        track outcomes and measure results, including--
                                    ``(I) capacity to track and analyze 
                                program performance and assess program 
                                impact; and
                                    ``(II) experience with performance-
                                based awards or performance-based 
                                contracting and achieving project 
                                milestones and targets.
                            ``(viii) Role in delivering the 
                        intervention.
                            ``(ix) How the intermediary would monitor 
                        program success, including a description of the 
                        interim benchmarks and outcome measures.
                    ``(E) Feasibility studies funded through other 
                sources.--The notice described in subparagraph (A) 
                shall permit a State 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 agreement.--Not later 
                than 6 months after receiving an application in 
                accordance with paragraph (2), the Secretary, in 
                consultation with the Federal Interagency Council on 
                Social Impact Partnerships, 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 partnership project (the application for 
                which was submitted under paragraph (2)) the Secretary, 
                in consultation with the Federal Interagency Council on 
                Social Impact Partnerships (established by paragraph 
                (6)) and the head of any Federal agency administering a 
                similar intervention or 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 Government 
                        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 evidence, 
                        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 
                        Government 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 
                        evaluation that would be conducted with respect 
                        to the agreement.
                    ``(C) Agreement authority.--
                            ``(i) Agreement requirements.--In 
                        accordance with this paragraph, the Secretary, 
                        in consultation with the Federal Interagency 
                        Council on Social Impact Partnerships and the 
                        head of any Federal agency 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 Interagency Council on Social 
                        Impact Partnerships, determines that each of 
                        the following requirements are met:
                                    ``(I) The State or local government 
                                agrees to achieve 1 or more outcomes 
                                specified in the agreement in order to 
                                receive payment.
                                    ``(II) The Federal payment to the 
                                State or local government for each 
                                outcome 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 
                                Secretary, in consultation with the 
                                State or local government.
                                    ``(III) The duration of the project 
                                does not exceed 10 years.
                                    ``(IV) The State or local 
                                government has demonstrated, through 
                                the application submitted under 
                                paragraph (2), that, based on prior 
                                rigorous experimental evaluations or 
                                rigorous quasi-experimental studies, 
                                the intervention can be expected to 
                                achieve each outcome specified in the 
                                agreement.
                                    ``(V) The State, local government, 
                                intermediary, or service provider has 
                                experience raising private or 
                                philanthropic capital to fund social 
                                service investments (if applicable to 
                                the project).
                                    ``(VI) The State or local 
                                government has shown that each service 
                                provider has experience delivering the 
                                intervention, a similar intervention, 
                                or has otherwise demonstrated the 
                                expertise necessary to deliver the 
                                intervention.
                            ``(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 requirements 
                        specified in the agreement and achieved an 
                        outcome specified in the agreement.
                    ``(D) Notice of agreement award.--Not later than 30 
                days after entering into an agreement under this 
                paragraph, the Secretary shall publish a notice in the 
                Federal Register that includes, with regard to the 
                agreement, the following:
                            ``(i) The outcome goals of the social 
                        impact 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 
                        government entity, intermediary, service 
                        provider, independent evaluator, investor, or 
                        other stakeholder.
                            ``(vi) The payment terms, the methodology 
                        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 aggregate, 
                        if the agreement is entered into and 
                        implemented and the outcomes are achieved.
                    ``(E) Authority to transfer administration 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 under subparagraph (C), and any funds necessary to 
                do so.
            ``(4) Feasibility study funding.--
                    ``(A) Requests for funding for feasibility 
                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 social impact partnership funding 
                under paragraph (2). To be eligible to receive funding 
                to assist with completing a feasibility study, a State 
                or local government shall submit an application for 
                feasibility study funding addressing the following:
                            ``(i) A description of the outcome goals of 
                        the social impact partnership project.
                            ``(ii) A description of the intervention, 
                        including anticipated program design, target 
                        population, an estimate regarding the number of 
                        individuals to be served, and setting for the 
                        intervention.
                            ``(iii) Evidence to support the likelihood 
                        that the intervention will produce the desired 
                        outcomes.
                            ``(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 outcomes are 
                        achieved.
                            ``(viii) An estimated timeline for 
                        implementation 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 intermediary to 
                        foster the partnerships.
                            ``(x) The expected resources needed to 
                        complete the feasibility study for the State or 
                        local government to apply for social impact 
                        partnership funding under paragraph (2).
                    ``(B) Federal selection of applications for 
                feasibility study.--Not later than 6 months after 
                receiving an application for feasibility study funding 
                under subparagraph (A), the Secretary, in consultation 
                with the Federal Interagency Council on Social Impact 
                Partnerships and the head of any Federal agency 
                administering 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 following:
                            ``(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 expected 
                        to be achieved.
                            ``(iv) The potential savings to the Federal 
                        Government if the social impact partnership 
                        project is successful.
                            ``(v) The potential savings to the State 
                        and local governments if the project is 
                        successful.
                    ``(C) Public disclosure.--Not later than 30 days 
                after selecting a State or local government for 
                feasibility study funding under this paragraph, the 
                Secretary shall cause to be published on the website of 
                the Federal Interagency Council on Social Impact 
                Partnerships information explaining why a State or 
                local government was granted feasibility study funding.
                    ``(D) Funding restriction.--
                            ``(i) Feasibility study restriction.--The 
                        Secretary may not provide feasibility 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 governments under this paragraph.
                            ``(iii) No guarantee of funding.--The 
                        Secretary shall have the option to award no 
                        funding under this paragraph.
                    ``(E) Submission of feasibility study required.--
                Not later than 9 months after the receipt of 
                feasibility study funding under this paragraph, a State 
                or local government receiving the funding shall 
                complete the feasibility study and submit the study to 
                the Federal Interagency Council on Social Impact 
                Partnerships.
                    ``(F) Delegation of authority.--The Secretary may 
                transfer to the head of another Federal agency the 
                authorities provided in this paragraph and any funds 
                necessary to exercise the authorities.
            ``(5) Evaluations.--
                    ``(A) Authority to enter into agreements.--For each 
                State or local government awarded a social impact 
                partnership project approved by the Secretary under 
                this subsection, the head of the relevant agency, as 
                determined by the Federal Interagency Council on Social 
                Impact Partnerships, shall enter into an agreement with 
                the State or local government to pay for all or part of 
                the independent evaluation to determine whether the 
                State or local government project has met an outcome 
                specified in the agreement in order for the State or 
                local government 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 effectiveness including, where available and 
                appropriate, well-implemented randomized controlled 
                trials on the intervention or similar interventions.
                    ``(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 designs using random assignment 
                or other reliable, evidence-based research 
                methodologies, as certified by the Federal Interagency 
                Council on Social Impact Partnerships, that allow for 
                the strongest possible causal inferences when random 
                assignment is not feasible.
                    ``(D) Progress report.--
                            ``(i) Submission of report.--The 
                        independent evaluator shall--
                                    ``(I) not later than 2 years after 
                                a project has been approved by the 
                                Secretary 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 
                                relevant agency and the Federal 
                                Interagency Council on Social Impact 
                                Partnerships a written report that 
                                includes the results of the evaluation 
                                conducted to determine whether an 
                                outcome payment should be made along 
                                with information on the unique factors 
                                that contributed to achieving or 
                                failing to achieve the outcome, 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 written 
                        report pursuant to clause (i)(II), the Federal 
                        Interagency Council on Social Impact 
                        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 partnership 
                        project is completed, the independent evaluator 
                        shall--
                                    ``(I) evaluate the effects of the 
                                activities undertaken pursuant to the 
                                agreement with regard to each outcome 
                                specified in the agreement; and
                                    ``(II) submit to the head of the 
                                relevant agency and the Federal 
                                Interagency Council on Social Impact 
                                Partnerships a written report that 
                                includes the results of the evaluation 
                                and the conclusion of the evaluator as 
                                to whether the State or local 
                                government has fulfilled each 
                                obligation of the agreement, 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 written 
                        report pursuant to clause (i)(II), the Federal 
                        Interagency Council on Social Impact 
                        Partnerships shall submit the report to each 
                        committee of jurisdiction in the House of 
                        Representatives and the Senate.
                    ``(F) Limitation on cost of evaluations.--Of the 
                amount reserved under this subsection 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 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 established the 
                Federal Interagency Council on Social Impact 
                Partnerships (in this paragraph referred to as the 
                `Council') to--
                            ``(i) coordinate the efforts of social 
                        impact 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 agreement 
                        with the Secretary for a social impact 
                        partnership project under this subsection and 
                        each evaluator selected by the head of 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 
                        partnership projects in the United States;
                            ``(viii) review State and local government 
                        applications for social impact partnerships to 
                        ensure that agreements will only be awarded 
                        under this subsection when rigorous, 
                        independent data and reliable, evidence-based 
                        research methodologies support the conclusion 
                        that an agreement will yield savings to the 
                        Federal Government if the project outcomes are 
                        achieved before the applications are approved 
                        by the Secretary;
                            ``(ix) certify, in the case of each 
                        approved social impact partnership, that the 
                        project will yield a projected savings to the 
                        Federal Government if the project outcomes are 
                        achieved, and coordinate with the relevant 
                        Federal agency to produce an after-action 
                        accounting once the project is complete to 
                        determine the actual Federal savings 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 periodically to 
                        Congress and the public on the implementation 
                        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 
                        Management 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 
                                Administration.
                                    ``(IV) The Department of 
                                Agriculture.
                                    ``(V) The Department of Justice.
                                    ``(VI) The Department of Housing 
                                and Urban Development.
                                    ``(VII) The Department of 
                                Education.
                                    ``(VIII) The Department of Veterans 
                                Affairs.
                                    ``(IX) The Department of the 
                                Treasury.
                                    ``(X) The Corporation for National 
                                and Community Service.
            ``(7) Commission on social impact partnerships.--
                    ``(A) Establishment.--There is established the 
                Commission on Social Impact Partnerships (in this 
                paragraph referred to as the `Commission').
                    ``(B) Duties.--The duties of the Commission shall 
                be to--
                            ``(i) assist the Secretary and the Federal 
                        Interagency Council on Social Impact 
                        Partnerships in reviewing applications for 
                        funding under this subsection;
                            ``(ii) make recommendations to the 
                        Secretary and the Federal Interagency Council 
                        on Social Impact Partnerships regarding the 
                        funding of social impact partnership agreements 
                        and feasibility studies; and
                            ``(iii) provide other assistance and 
                        information 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 
                        President, who will serve as the Chair of the 
                        Commission;
                            ``(ii) 1 shall be appointed by the Majority 
                        Leader of the Senate;
                            ``(iii) 1 shall be appointed by the 
                        Minority Leader of the Senate;
                            ``(iv) 1 shall be appointed by the Speaker 
                        of the House of Representatives;
                            ``(v) 1 shall be appointed by the Minority 
                        Leader of the House of Representatives;
                            ``(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 Finance 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 ranking 
                        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, economics, 
                        pay for performance, or program evaluation;
                            ``(ii) have relevant professional or 
                        personal experience in a field related to 1 or 
                        more of the outcomes listed in this subsection; 
                        or
                            ``(iii) be qualified to review applications 
                        for social impact partnership projects to 
                        determine whether the proposed metrics and 
                        evaluation methodologies are appropriately 
                        rigorous and reliant upon independent data and 
                        evidence-based research.
                    ``(E) Timing of appointments.--The appointments 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 
                President's choice on behalf of the member of Congress. 
                Notwithstanding the preceding sentence, if not all 
                appointments have been made to the Commission as of 
                that date, the Commission may operate with no fewer 
                than 5 members until all appointments have been made.
                    ``(F) Term of appointments.--
                            ``(i) In general.--The members appointed 
                        under subparagraph (C) shall serve as follows:
                                    ``(I) 3 members shall serve for 2 
                                years.
                                    ``(II) 3 members shall serve for 3 
                                years.
                                    ``(III) 3 members (1 of which shall 
                                be Chair of the Commission appointed by 
                                the President) shall serve for 4 years.
                            ``(ii) Assignment of terms.--The Commission 
                        shall designate the term length that each 
                        member appointed under subparagraph (C) shall 
                        serve by unanimous agreement. In the event that 
                        unanimous agreement 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 Commission, 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 Commission.
                    ``(H) Appointment power.--Members of the Commission 
                appointed under subparagraph (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 Secretary may not use more 
        than $2,000,000 in any fiscal year to support the review, 
        approval, and oversight 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 Secretary 
                before approving a social impact partnership project or 
                a feasibility study under paragraph (4).
            ``(9) No federal funding for credit enhancements.--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 reserved to carry 
        out this subsection shall remain available 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 partnership 
                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 Secretary for a 
                social impact partnership project, the website shall 
                contain the following information:
                            ``(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.
                            ``(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 thresholds.
                            ``(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 measured.
                    ``(D) A copy of the progress reports and the final 
                reports relating to each social impact partnership 
                project.
                    ``(E) An estimate of the savings to the Federal, 
                State, and local government, on a program-by-program 
                basis and in the aggregate, resulting from the 
                successful completion of the social impact partnership 
                project.
            ``(12) Regulations.--The Secretary, in consultation with 
        the Federal Interagency Council on Social 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 `intervention' 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 services using a social impact 
                partnership model.
                    ``(E) Social impact partnership model.--The term 
                `social impact partnership model' means a method of 
                financing social services in which--
                            ``(i) Federal funds are awarded to a State 
                        or local government only if a State or local 
                        government achieves certain outcomes agreed on 
                        by the State or local government and the 
                        Secretary; and
                            ``(ii) the State or local government 
                        coordinates with service providers, investors 
                        (if applicable to the project), and (if 
                        necessary) an intermediary to identify--
                                    ``(I) an intervention expected to 
                                produce the outcome;
                                    ``(II) a service provider to 
                                deliver the intervention to the target 
                                population; and
                                    ``(III) investors to fund the 
                                delivery of the intervention.
                    ``(F) State.--The term `State' means each State of 
                the United States, the District of Columbia, each 
                commonwealth, territory or possession of the United 
                States, and each federally recognized 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.''.
                                                 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 Nation's social programs, and for other 
                               purposes.

_______________________________________________________________________

                             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