[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 576 Introduced in House (IH)]
<DOC>
115th CONGRESS
1st Session
H. R. 576
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
January 13, 2017
Mr. Tiberi (for himself, Mr. Delaney, Mr. MacArthur, Mr. Larson of
Connecticut, Mr. Polis, Mr. Blumenauer, Mrs. Brooks of Indiana, Mrs.
Walorski, and Mr. Paulsen) introduced the following bill; which was
referred to the Committee on Ways and Means, and in addition to the
Committee on Oversight and Government Reform, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To encourage and support partnerships between the public and private
sectors to improve our Nation's social programs, and for other
purposes.
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, nonprofits,
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 governments 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 one or more measurable, clearly defined
outcomes that result in social benefit and Federal,
State, or local savings through any of the following:
``(i) Increasing work and earnings by
individuals in the United States who are
unemployed 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 two-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, reunifications, or
placements 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 juvenile
offenders, 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 as a result of
the intervention.
``(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 in 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 in the
evaluation to determine whether the outcomes
have been achieved as a result of the
intervention and how the metrics will be
measured.
``(xxi) An explanation of how the metrics
used in the evaluation to determine whether the
outcomes achieved as a result of the
intervention 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.
``(xxiv) A description of whether and how
the State or local government and service
providers plan to sustain the intervention, if
it is timely and appropriate to do so, to
ensure that successful interventions continue
to operate after the period of the social
impact partnership.
``(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 as a result of the intervention.
``(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 as a result of the
intervention.
``(v) The savings to the State and local
governments if the outcomes specified in the
agreement are achieved as a result of the
intervention.
``(vi) The expected quality of the
evaluation that would be conducted with respect
to the agreement.
``(vii) The capacity and commitment of the
State or local government to sustain the
intervention, if appropriate and timely and if
the intervention is successful, beyond the
period of the social impact partnership.
``(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 one or more outcomes
as a result of the intervention, as
specified in the agreement and
validated by independent evaluation, in
order to receive payment.
``(II) The Federal payment to the
State or local government for each
specified outcome achieved as a result
of the intervention 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 as a result of the intervention, as
specified in the agreement and validated by
independent evaluation.
``(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 in the
evaluation to determine whether the outcomes
have been achieved as a result of each
intervention 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 as a
result of each intervention.
``(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.
``(F) Requirement on funding used to benefit
children.--Not less than 50 percent of all Federal
payments made to carry out agreements under this
paragraph shall be used for initiatives that directly
benefit children.
``(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 as a result of each intervention.
``(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 as a result of each
intervention.
``(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
recommended by the Federal Interagency Council on
Social Impact Partnerships and determined by the
Secretary, 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 achieved a specific
outcome as a result of the intervention 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 the secretary and
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 the Secretary and 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 the secretary and
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 the Secretary and 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 with the Secretary on 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) certify to the Secretary 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) prior to approval by the
Secretary, certify that each State and local
government application for a social impact
partnership contains rigorous, independent data
and reliable, evidence-based research
methodologies to support the conclusion that
the project will yield savings to the State or
local government or the Federal Government if
the project outcomes are achieved;
``(ix) certify to the Secretary, in the
case of each approved social impact partnership
that is expected to yield savings to the
Federal Government, 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 periodic reports to the
Secretary and make available reports
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 one
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 nine members, of whom--
``(i) one shall be appointed by the
President, who will serve as the Chair of the
Commission;
``(ii) one shall be appointed by the
Majority Leader of the Senate;
``(iii) one shall be appointed by the
Minority Leader of the Senate;
``(iv) one shall be appointed by the
Speaker of the House of Representatives;
``(v) one shall be appointed by the
Minority Leader of the House of
Representatives;
``(vi) one shall be appointed by the
Chairman of the Committee on Finance of the
Senate;
``(vii) one shall be appointed by the
ranking member of the Committee on Finance of
the Senate;
``(viii) one member shall be appointed by
the Chairman of the Committee on Ways and Means
of the House of Representatives; and
``(ix) one 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 one
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 five 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) Three members shall serve for
2 years.
``(II) Three members shall serve
for 3 years.
``(III) Three members (one 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.''.
SEC. 3. EXTENSION OF TANF PROGRAM.
(a) Family Assistance Grants.--Section 403(a)(1) of the Social
Security Act (42 U.S.C. 603(a)(1)) is amended in each of subparagraphs
(A) and (C), by striking ``2012'' and inserting ``2017''.
(b) Healthy Marriage Promotion and Responsible Fatherhood Grants.--
Section 403(a)(2)(D) of such Act (42 U.S.C. 603(a)(2)(D)) is amended by
striking ``2012'' each place it appears and inserting ``2017''.
(c) Tribal Grants.--Section 412(a) of such Act (42 U.S.C. 612(a))
is amended in each of paragraphs (1)(A) and (2)(A) by striking ``2012''
and inserting ``2017''.
(d) Child Care Entitlement.--Section 418(a)(3) of such Act (42
U.S.C. 618(a)(3)) is amended by striking ``2012'' and inserting
``2017''.
(e) Grants to the Territories.--Section 1108(b)(2) of such Act (42
U.S.C. 1308(b)(2)) is amended by striking ``2012'' and inserting
``2017''.
(f) Extension of the Temporary Assistance for Needy Families
Program and Related Programs Through December 31, 2017.--Activities
authorized by part A of title IV and section 1108(b) of such Act (other
than under section 403(b) of such Act) shall continue through December
31, 2017, in the manner authorized for fiscal year 2017, and out of any
money in the Treasury of the United States not otherwise appropriated,
there are hereby appropriated such sums as may be necessary for such
purpose. Grants and payments may be made pursuant to this authority on
a quarterly basis through the first quarter of fiscal year 2018 at the
level provided for such activities for the corresponding quarter of
fiscal year 2017.
SEC. 4. STRENGTHENING WELFARE RESEARCH AND EVALUATION AND DEVELOPMENT
OF A WHAT WORKS CLEARINGHOUSE.
(a) In General.--Section 413 of the Social Security Act (42 U.S.C.
613) is amended to read as follows:
``SEC. 413. EVALUATION OF TEMPORARY ASSISTANCE FOR NEEDY FAMILIES AND
RELATED PROGRAMS.
``(a) Evaluation of the Impacts of TANF.--The Secretary shall
conduct research on the effect of State programs funded under this part
and any other State program funded with qualified State expenditures
(as defined in section 409(a)(7)(B)(i)) on employment, self-
sufficiency, child well-being, unmarried births, marriage, poverty,
economic mobility, and other factors as determined by the Secretary.
``(b) Evaluation of Grants To Improve Child Well-Being by Promoting
Healthy Marriage and Responsible Fatherhood.--The Secretary shall
conduct research to determine the effects of the grants made under
section 403(a)(2) on child well-being, marriage, family stability,
economic mobility, poverty, and other factors as determined by the
Secretary.
``(c) Dissemination of Information.--The Secretary shall, in
consultation with States receiving funds provided under this part,
develop methods of disseminating information on any research,
evaluation, or study conducted under this section, including
facilitating the sharing of information and best practices among States
and localities.
``(d) State-Initiated Evaluations.--A State shall be eligible to
receive funding to evaluate the State program funded under this part or
any other State program funded with qualified State expenditures (as
defined in section 409(a)(7)(B)(i)) if--
``(1) the State submits to the Secretary a description of
the proposed evaluation;
``(2) the Secretary determines that the design and approach
of the proposed evaluation is rigorous and is likely to yield
information that is credible and will be useful to other
States; and
``(3) unless waived by the Secretary, the State contributes
to the cost of the evaluation, from non-Federal sources, an
amount equal to at least 25 percent of the cost of the proposed
evaluation.
``(e) Census Bureau Research.--
``(1) The Bureau of the Census shall implement or enhance
household surveys of program participation, in consultation
with the Secretary and the Bureau of Labor Statistics and made
available to interested parties, to allow for the assessment of
the outcomes of continued welfare reform on the economic and
child well-being of low-income families with children,
including those who received assistance or services from a
State program funded under this part or any other State program
funded with qualified State expenditures (as defined in section
409(a)(7)(B)(i)). The content of the surveys should include
such information as may be necessary to examine the issues of
unmarried childbearing, marriage, welfare dependency and
compliance with work requirements, the beginning and ending of
spells of assistance, work, earnings and employment stability,
and the well-being of children.
``(2) To carry out the activities specified in paragraph
(1), the Bureau of the Census, the Secretary, and the Bureau of
Labor Statistics shall consider ways to improve the surveys and
data derived from the surveys to--
``(A) address under reporting of the receipt of
means-tested benefits and tax benefits for low-income
individuals and families;
``(B) increase understanding of poverty spells and
long-term poverty, including by facilitating the
matching of information to better understand
intergenerational poverty;
``(C) generate a better geographical understanding
of poverty such as through State-based estimates and
measures of neighborhood poverty;
``(D) increase understanding of the effects of
means-tested benefits and tax benefits on the earnings
and incomes of low-income families; and
``(E) improve how poverty and economic well-being
are measured, including through the use of consumption
measures, material deprivation measures, social
exclusion measures, and economic and social mobility
measures.
``(f) Research and Evaluation Conducted Under This Section.--
Research and evaluation conducted under this section designed to
determine the effects of a program or policy (other than research
conducted under subsection (e)) shall use experimental designs using
random assignment or other reliable, evidence-based research
methodologies that allow for the strongest possible causal inferences
when random assignment is not feasible.
``(g) Development of What Works Clearinghouse of Proven and
Promising Approaches To Move Welfare Recipients Into Work.--
``(1) In general.--The Secretary, in consultation with the
Secretary of Labor, shall develop a database (which shall be
referred to as the `What Works Clearinghouse of Proven and
Promising Projects to Move Welfare Recipients into Work') of
the projects that used a proven approach or a promising
approach in moving welfare recipients into work, based on
independent, rigorous evaluations of the projects. The database
shall include a separate listing of projects that used a
developmental approach in delivering services and a further
separate listing of the projects with no or negative effects.
The Secretary shall add to the What Works Clearinghouse of
Proven and Promising Projects to Move Welfare Recipients into
Work data about the projects that, based on an independent,
well-conducted experimental evaluation of a program or project,
using random assignment or other research methodologies that
allow for the strongest possible causal inferences, have shown
they are proven, promising, developmental, or ineffective
approaches.
``(2) Criteria for evidence of effectiveness of approach.--
The Secretary, in consultation with the Secretary of Labor and
organizations with experience in evaluating research on the
effectiveness of various approaches in delivering services to
move welfare recipients into work, shall--
``(A) establish criteria for evidence of
effectiveness; and
``(B) ensure that the process for establishing the
criteria--
``(i) is transparent;
``(ii) is consistent across agencies;
``(iii) provides opportunity for public
comment; and
``(iv) takes into account efforts of
Federal agencies to identify and publicize
effective interventions, including efforts at
the Department of Health and Human Services,
the Department of Education, and the Department
of Justice.
``(3) Definitions.--In this subsection:
``(A) Approach.--The term `approach' means a
process, product, strategy, or practice that is--
``(i) research-based, based on the results
of one or more empirical studies, and linked to
program-determined outcomes; and
``(ii) evaluated using rigorous research
designs.
``(B) Proven approach.--The term `proven approach'
means an approach that--
``(i) meets the requirements of a promising
approach; and
``(ii) has demonstrated significant and
substantively important positive outcomes at
more than one site in terms of increasing work
and earnings of participants, reducing poverty
and dependence, improving child well-being, or
strengthening families.
``(C) Promising approach.--The term `promising
approach' means an approach--
``(i) that meets the requirements of
subparagraph (D)(i);
``(ii) that has been evaluated using well-
designed and rigorous randomized controlled
trials (or, if not available, rigorous quasi-
experimental research designs);
``(iii) that has demonstrated significant
and substantively important positive outcomes
at one site in terms of increasing work and
earnings of participants, reducing poverty and
dependence, improving child well-being, or
strengthening families; and
``(iv) under which the benefits of the
positive outcomes have exceeded the costs of
achieving the outcomes.
``(D) Developmental approach.--The term
`developmental approach' means an approach that--
``(i) is research-based, grounded in
relevant empirically based knowledge, and
linked to program-determined outcomes;
``(ii) is evaluated using rigorous research
designs; and
``(iii) has yet to demonstrate a
significant positive outcome in terms of
increasing work and earnings of participants in
a cost-effective way.
``(h) Appropriation.--
``(1) In general.--Of the amount appropriated by section
403(a)(1) for each fiscal year, 0.33 percent shall be available
for research, technical assistance, and evaluation under this
section.
``(2) Allocation.--Of the amount made available under
paragraph (1) for each fiscal year, the Secretary shall make
available $10,000,000 plus such additional amount as the
Secretary deems necessary and appropriate, to carry out
subsection (e).''.
(b) Conforming Amendment.--Section 403(a)(1)(B) of such Act (42
U.S.C. 603(a)(1)(B)) is amended by inserting ``, reduced by the
percentage specified in section 413(h) with respect to the fiscal
year,'' before ``as the amount''.
SEC. 5. TECHNICAL CORRECTIONS TO DATA EXCHANGE STANDARDS TO IMPROVE
PROGRAM COORDINATION.
(a) In General.--Section 411(d) of the Social Security Act (42
U.S.C. 611(d)) is amended to read as follows:
``(d) Data Exchange Standards for Improved Interoperability.--
``(1) Designation.--The Secretary shall, in consultation
with an interagency work group established by the Office of
Management and Budget and considering State government
perspectives, by rule, designate data exchange standards to
govern, under this part--
``(A) necessary categories of information that
State agencies operating programs under State plans
approved under this part are required under applicable
Federal law to electronically exchange with another
State agency; and
``(B) Federal reporting and data exchange required
under applicable Federal law.
``(2) Requirements.--The data exchange standards required
by paragraph (1) shall, to the extent practicable--
``(A) incorporate a widely accepted, non-
proprietary, searchable, computer-readable format, such
as the eXtensible Markup Language;
``(B) contain interoperable standards developed and
maintained by intergovernmental partnerships, such as
the National Information Exchange Model;
``(C) incorporate interoperable standards developed
and maintained by Federal entities with authority over
contracting and financial assistance;
``(D) be consistent with and implement applicable
accounting principles;
``(E) be implemented in a manner that is cost-
effective and improves program efficiency and
effectiveness; and
``(F) be capable of being continually upgraded as
necessary.
``(3) Rule of construction.--Nothing in this subsection
shall be construed to require a change to existing data
exchange standards found to be effective and efficient.''.
(b) Effective Date.--Not later than the date that is 24 months
after the date of the enactment of this section, the Secretary of
Health and Human Services shall issue a proposed rule that--
(1) identifies federally required data exchanges, include
specification and timing of exchanges to be standardized, and
address the factors used in determining whether and when to
standardize data exchanges; and
(2) specifies State implementation options and describes
future milestones.
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