[House Report 114-616]
[From the U.S. Government Publishing Office]
114th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 114-616
======================================================================
SOCIAL IMPACT PARTNERSHIPS TO PAY FOR RESULTS ACT
_______
June 10, 2016.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Brady of Texas, from the Committee on Ways and Means, submitted the
following
R E P O R T
together with
ADDITIONAL AND DISSENTING VIEWS
[To accompany H.R. 5170]
[Including cost estimate of the Congressional Budget Office]
The Committee on Ways and Means, to whom was referred the
bill (H.R. 5170) to encourage and support partnerships between
the public and private sectors to improve our Nation's social
programs, and for other purposes, having considered the same,
report favorably thereon with an amendment and recommend that
the bill as amended do pass.
CONTENTS
Page
I. SUMMARY AND BACKGROUND..........................................11
A. Purpose and Summary................................. 11
B. Background and Need for Legislation................. 11
C. Legislative History................................. 12
II. EXPLANATION OF THE BILL.........................................12
Section 1: Short Title................................. 12
Section 2: Social Impact Partnerships to Pay For
Results............................................ 13
III. VOTES OF THE COMMITTEE..........................................19
IV. NEW BUDGET AUTHORITY AND TAX EXPENDITURES.......................20
V. COST ESTIMATE PREPARED BY THE CONGRESSIONAL BUDGET OFFICE.......20
VI. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE......22
A. Committee Oversight Findings and Recommendations.... 22
B. Statement of General Performance Goals and
Objectives......................................... 22
C. Applicability of House Rule XXI 5(b)................ 22
D. Congressional Earmarks, Limited Tax Benefits, and
Limited Tariff Benefits............................ 23
E. Duplication of Federal Programs..................... 23
F. Disclosure of Directed Rule Makings................. 23
VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED...........23
A. Text of Existing Law Amended or Repealed by the
Bill, as Reported.................................. 23
B. Changes in Existing Law Proposed by the Bill, as
Reported........................................... 47
VIII.ADDITIONAL AND DISSENTING VIEWS.................................85
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
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.''.
I. SUMMARY AND BACKGROUND
A. Purpose and Summary
H.R. 5170 as amended, the ``Social Impact Partnerships to
Pay for Results Act,'' as ordered by reported by the Committee
on Ways and Means on May 11, 2016, reserves a portion of
existing welfare funds to support innovative and effective
social programs that deliver measurable results for people in
need.
B. Background and Need for Legislation
Each year, the federal government spends hundreds of
billions of dollars on more than 80 programs designed to assist
children and families with limited resources. While each
program was created with a goal of making a real difference in
the lives of those in need, few programs have been proven to
produce better outcomes for the low-income families and
individuals they serve. In many cases, these programs have
never been evaluated to determine if they are working as
intended. Most programs cannot demonstrate they achieve better
outcomes for poor families. According to two former White House
officials, one Democrat and one Republican, ``based on our
rough calculations, less than $1 out of every $100 of
government spending is backed by even the most basic evidence
that the money is being spent wisely.''\1\ Instead, many
decisions on program design and funding are made based on poor
quality studies, anecdotes or testimonials, or well-meaning
program operators who believe their program will be effective.
Even when programs are evaluated, most don't work.
---------------------------------------------------------------------------
\1\John Bridgeland and Peter Orszag, Can Government Play Moneyball?
How a new era of fiscal scarcity could make Washington work better. The
Atlantic, July/August 2013 issue. Available online: http://
www.theatlantic.com/magazine/archive/2013/07/can-government-play-
moneyball/309389/.
---------------------------------------------------------------------------
Low-income individuals and taxpayers alike deserve programs
that are effective in helping people improve their lives and
get ahead. Given the current fiscal climate, it is also
critical that Congress ensure taxpayer dollars are spent on
programs that work. Social Impact financing is one mechanism
designed to improve the way taxpayer funds are spent on social
services by ensuring money is only spent on programs that
deliver results. At its core, this financing structure
represents a way to fund effective social programs and ensure
government only pays for success. Under this model, government
identifies a desired social outcome and agrees to pay for that
outcome. Next, investors agree to a contract to be paid for
that outcome and identify and fund a service provider to
achieve it. If the outcome is achieved, the government repays
investors. If the outcome is not achieved, the government does
not pay.
Social impact financing shifts the risk of achieving the
outcome from government to the private sector, as taxpayer
funds are only spent if desired outcomes are achieved. As a
result, this funding structure helps drive innovation and
competition in the social service sector, as funding will be
available to reward those who demonstrate effectiveness. This
financing structure also provides more flexibility to service
providers to focus on achieving outcomes--instead of focusing
on compliance with cumbersome federal rules.
C. Legislative History
Background
H.R. 5170, the ``Social Impact Partnerships to Pay for
Results Act,'' was introduced on May 6, 2016, by Representative
Todd Young and Representative John Delaney, and was referred to
the Committee on Ways and Means.
The bill represents the result of over two years of
legislative work to include feedback from a variety of
stakeholders. A proposal was released for public comment on
April 29, 2014, and many groups provided feedback on the
initial draft. After incorporating this feedback into a new
draft, the bill was introduced on June 18, 2014, and Mr. Young
and Mr. Delaney continued to solicit input in the months
following the bill introduction. The sponsors continued to
consider comments and suggestions through March 4, 2015, when
the bill was reintroduced incorporating additional suggestions.
The proposal was further refined when it was included as part
of a Ways and Means discussion draft to reauthorize the
Temporary Assistance for Needy Families (TANF) program on July
17, 2015. The latest version, introduced May 6, 2016, includes
further feedback, including input from every major stakeholder,
including Republicans, Democrats, and the White House.
Committee hearings
The Ways and Means Human Resources Subcommittee held a
hearing on the bill on September 9, 2014. This hearing
highlighted how few federal social programs are evaluated to
determine whether they are effective, and how some state and
local governments are providing funding through ``pay for
results'' or ``social impact'' contracts to only pay for social
services that produce results.
Committee action
The Committee on Ways and Means marked up H.R. 5170, the
``Social Impact Partnerships to Pay for Results Act,'' on May
11, 2016. The bill, H.R. 5170, was ordered favorably reported
to the House of Representatives as amended by a voice vote
(with a quorum being present).
II. EXPLANATION OF THE BILL
Section 1: Short Title
Present law
No provision.
Explanation of provision
This section contains the short title of the bill, the
``Social Impact Partnerships to Pay for Results Act.''
Reason for change
The Committee believes that the short title reflects the
policy actions included in the legislation.
Effective date
The provision is effective October 1, 2016.
Section 2: Social Impact Partnerships To Pay for Results
Present law
No provision.
Explanation of provision
The ``Social Impact Partnerships to Pay for Results Act''
would establish Social Impact Partnership demonstration
projects. The bill would authorize the Secretary of the
Treasury to enter into agreements with state or local
governments to conduct projects where the federal government
would make a payment to the state or local government if the
project met the requirements of the agreement and achieved one
or more of the outcomes specified in the contract (pay for
performance) as determined by an independent evaluator.
A Federal Interagency Council on Social Impact Partnerships
would be established to:
Coordinate the efforts of projects funded
under the demonstration;
Advise and assist the Secretary of the
Treasury on the implementation and development of
projects;
Advise the Secretary on specific
programmatic and policy matters;
Provide subject matter expertise;
Ensure access to federal administrative data
to evaluate the project;
Address issues that will influence, and
provide guidance to the executive branch on, the future
of social impact partnerships;
Review applications for social impact
partnership projects;
Certify that each approved project will
yield projected savings to the federal government; and
Provide oversight for projects in the
demonstration.
The council would be composed of 11 members. The bill would
designate the Director of the Office of Management and Budget
to be chair, and would require the remaining ten members to be
designated by the following federal agencies, with each federal
agency designating one officer or employee: the Department of
Labor, Department of Health and Human Services, Social Security
Administration, Department of Agriculture, Department of
Justice, Department of Housing and Urban Development,
Department of Education, Department of Veterans Affairs,
Department of the Treasury, and the Corporation for National
and Community Service.
The social impact demonstration has seven enumerated
purposes:
1. Improve the lives of families and individuals in
need in the United States by funding social programs
that achieve real results;
2. Redirect funds away from programs that are
ineffective and into programs that achieve
demonstrable, measurable results;
3. Ensure the federal funds are used effectively on
social services to produce positive outcomes for both
recipients and taxpayers;
4. Establish the use of social impact partnerships to
address some national problems;
5. Facilitate the creation of public-private
partnerships;
6. Bring pay-for-performance to the social sector;
and
7. Incorporate outcome measurement and randomized
control trials or other rigorous methods for assessing
program impacts.
The bill would require a social impact partnership project
to produce one or more measurable outcomes that result in
social benefit and federal savings through any of the following
enumerated outcomes:
1. Increasing work or earnings of those who have been
unemployed for more than six consecutive months;
2. Increasing employment and earnings of youth aged
16 through 24;
3. Increasing employment among individuals receiving
federal disability benefits;
4. Reducing dependence of low-income families on
means-tested benefits;
5. Improving high school graduation rates;
6. Reducing teen and unplanned pregnancies;
7. Improving birth outcomes and early childhood
health and development for low-income families and
individuals;
8. Reducing rates of asthma, diabetes, or other
preventable diseases among low-income families and
reducing the use of emergency and high cost health
care;
9. Increasing the proportion of children living in
two-parent families;
10. Reducing the incidence and adverse consequences
of child abuse and neglect;
11. Reducing the number of youth in foster care;
12. Reducing the number of youth in foster care
living in non-family environments (e.g., group homes);
13. Reducing the number of children returning to
foster care;
14. Reducing recidivism among juveniles, individuals
released from prison, or other high risk populations;
15. Reducing homelessness;
16. Improving the health and well-being of those with
mental, emotional, and behavioral health needs;
17. Improving the educational outcomes of special-
needs or low-income children;
18. Improving the employment and well-being of
returning U.S. military members;
19. Increasing the financial stability of low-income
families;
20. Increasing the independence and employability of
those with physical or mental disabilities; and
21. Other positive social outcomes and federal
savings.
Not later than one year after enactment, the Secretary of
the Treasury, in consultation with the Federal Interagency
Council on Social Impact Partnerships, would be required to
publish in the Federal Register a notice that seeks proposals
from state or local governments for social impact partnership
projects. A state or local government would be required to
submit an application for the social impact partnership
project.
The application would be required to, among other things,
describe the intervention, unmet needs addressed by the
intervention, target population, criteria for determining
eligibility and enrollment in the project, and a plan for
delivering the intervention. In the application, the state or
local government would be required to address project outcome
goals; demonstrate with certain types of evidence that the
intervention can be expected to produce the desired outcome;
include projections of federal, state, and local government
costs of the project; and include projections of federal,
state, and local government savings from a successful
implementation of the project. The application would be
required to also include a description of the experience of the
state and local government in raising private and philanthropic
capital to fund social services; the experience of the service
provider in delivering the proposed intervention; certain
information about the intermediary for the social impact
partnership project, including the intermediary's experience
and capacity, mission and goals, and other categories of
information. The application would also be required to address
the project's evaluation, metrics used in its assessment, and
the terms for payment if the program succeeds in producing its
desired outcome.
A Commission on Social Impact Partnerships would be
established to assist the Secretary of the Treasury and the
Federal Interagency Council on Social Impact Partnerships in
reviewing applications for funding, make recommendations to the
Secretary of the Treasury and the Council on Social Impact
Partnerships regarding funding for agreements and feasibility
studies, and provide other assistance and information. The
commission would be composed of nine members: a chair appointed
by the President and eight members selected by designated
Members of Congress.
Under the demonstration, federal funds could provide up to
50% of the cost of a feasibility study to apply for social
impact partnership funding. Applications would be able to also
include information drawn from feasibility studies funded
through other sources. However, state and local governments
would not be guaranteed federal funding for these studies.
Applications for funding for feasibility study funding would be
required to be submitted by state or local governments, and
would be required to address:
A description of the outcome goals of the
project;
A description of the intervention;
Evidence supporting the likelihood that the
intervention will produce desired outcomes;
A description of the potential metrics to be
used;
Expected social benefits to participants
receiving the intervention;
Estimated costs to conduct the project;
Estimated savings to the federal government
if the outcomes are achieved;
Estimated timeline for completion;
Any partnership needed to successfully
execute the project; and
Expected resources needed to complete the
feasibility study.
The Secretary of the Treasury would be required to make a
determination about whether to award funding for a feasibility
study to an eligible application not later than six months
after receiving an application for feasibility study funding.
In making this determination, the Secretary of the Treasury
would be required to consult with the Federal Interagency
Council on Social Impact Partnerships and the heads of certain
federal agencies. When considering an award of feasibility
study funding, the Secretary of the Treasury would be required
to consider the recommendations made by the Commission on
Social Impact Partnerships, the likelihood that the proposal
will achieve the desired outcomes, the value of the expected
outcomes, and the potential savings to the federal government
and to state and local governments if the project was
successful.
The Secretary of the Treasury would be required to make a
determination about whether to enter into an agreement with an
eligible applicant not later than six months after receiving a
project application. In making this determination, the
Secretary of the Treasury would be required to consult 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 the one
described in the project application, and to consider several
factors before making a determination on whether to enter into
an agreement. These factors would be the recommendations made
by the Commission on Social Impact Partnerships; the value of
the expected outcomes; the likelihood, based on evidence
provided in the application, that the state or local government
will achieve the expected outcomes; savings to the federal
government; savings to state and local governments; and the
expected quality of the evaluation that is associated with the
agreement.
Under the demonstration project, the Secretary of the
Treasury would be authorized (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 the one described in the
project), to enter into an agreement with a state or local
government for the social impact partnership project. The
Secretary of the Treasury would be authorized to transfer to
the head of another federal agency the authority to administer
an agreement entered into by the Secretary of the Treasury and
any funds necessary to do so. The state or local government
would be required to agree to achieve one or more outcomes
specified in the agreement. The federal payment for each
outcome specified would be required to be less than the value
of the outcome to the federal government within a period of up
to 10 years; and the duration of the project could not exceed
10 years. Federal payment to the state and local government
would be made if an independent evaluator had determined that
the project has met the requirements of, and achieved an
outcome specified in, the agreement. The Secretary of the
Treasury would be required to publish a notice of agreement
award not later than 30 days after entering into an agreement.
The independent evaluation used to determine payments to
state and local governments for project outcomes would be
required to use experimental designs using random assignment,
or certain other research methodologies when random assignment
is not feasible, that allow for the strongest possible causal
inferences. Progress reports would be due from the evaluator
within two years of the approval of the project, and biannually
thereafter. A report would also be due before the scheduled
time of the first outcome payment, as well as a final report
within six months of the completion of the social impact
partnership project.
To carry out these provisions, the Committee bill would
direct the Secretary of the Treasury to reserve $100 million of
amounts made available for the Contingency Fund for State
Welfare Programs for FY2017.
Reason for change
There is bipartisan support to use federal funds to pay for
programs that produce real results. Groups ranging from
conservative think tanks to liberal advocacy organizations have
recommended funding programs on a ``pay-for-outcomes'' basis.
States and local governments are testing this strategy now, but
without federal participation their ability to pay for outcomes
is limited as a substantial amount of funding for social
services is provided by the federal government. By allowing the
federal government to partner with states and local governments
to pay for outcomes, more approaches can be tested and
evaluated to determine whether they deliver real results for
people in need.
Social impact financing allows the government to contract
for the delivery of services, but in a way that prevents those
contracting with the government from negotiating contract terms
where they would receive payment regardless of results. A key
feature of social impact financing is that the government and
investors jointly identify objective, quantifiable outcomes
that must be met for payment to be made and an independent
evaluator determines if the goals are met. By selecting an
objective outcome goal instead of some other metric, the
government is less likely to pay for things that don't produce
the outcome they are seeking (such as clients served, classes
taught, or costs incurred). In addition, the outcome for
individuals served will be compared with the outcomes for a
control group to confirm the services provided are responsible
for producing the outcome.
Social impact financing also aligns the interests of the
government, investors, and service providers. In a traditional
contract, the government agrees to pay for various inputs,
processes, facilities, or services, which encourages providers
to increase those factors--regardless of whether they improve
the outcome or not. In a social impact financing structure,
government only pays if the project achieves the desired
outcomes. As a result, investors have a strong incentive to
produce the positive social outcome and manage the project to
ensure it succeeds.
Social impact financing is not a way to privatize social
services, but a way to improve how social services are funded.
Under a social impact financing model, traditional service
providers are the ones providing the services. However, instead
of government paying for the delivery of these services,
investors pay these costs during the life of the project.
Service providers are still accountable to the government for
achieving results, and investors must still report to the
government on their progress toward achieving the project
goals. In a Ways and Means Human Resources Subcommittee hearing
in September of 2014, one social service provider participating
in a social impact contract spoke about the advantages of this
type of funding over traditional funding, saying ``[r]eceiving
these resources upfront, on a quarterly basis, allows CEO to
concentrate on providing excellent services and alleviates the
burden of fundraising.''\2\
---------------------------------------------------------------------------
\2\Sam Schaeffer, CEO and Executive Director, Center for Employment
Opportunities. Testimony before the House Committee on Ways and Means,
Subcommittee on Human Resources, September 9, 2014. Available online:
http://waysandmeans.house.gov/UploadedFiles/
Sam_Schaeffer_Testimony_090914_HR14.pdf.
---------------------------------------------------------------------------
Some believe government should simply pay for ``proven''
programs instead of contracting for these services through a
social impact mechanism where government only pays if they
produce results. However, there are a number of reasons why
government may want to fund a ``proven'' program through social
impact financing instead of directly operating the program or
using traditional contracts to deliver the service to
individuals in need:
1. Transfer Risk: By paying only for outcomes, the
government can transfer risk to investors. This includes the
risk that replicating a program in a new area won't work, that
the program won't be implemented correctly, or that some
external event will limit the program's impact.
2. Continue Improvement/Innovation: When running programs
directly or funding them through traditional contracts,
governments will implement policies and practices to ensure the
program model is followed with fidelity. While this ensures
uniformity, it can also keep service providers from innovating
in ways that improve the program over time. Under a social
impact financing model, investors are continually focused on
the performance of the program and have the ability to make
ongoing adjustments to ensure the outcomes are realized.
3. Reduce Bureaucracy: When the federal government runs a
social program directly, they are responsible for developing
the program policy and regulations, hiring and managing staff,
operating physical facilities where services are delivered, and
paying for the delivery of the service itself. When the
government runs a program via contract, it must still negotiate
each of these same elements with the contractor. However, under
a social impact financing model, the government only needs to
determine the value of a specific social outcome and agree to
pay if it is achieved. Other aspects of the program--the
selection of the appropriate intervention, raising funds to
operate the project, hiring of staff, managing of facilities,
and delivery of program services--can be done by individuals
outside of government, reducing the need for a large government
bureaucracy to deliver services.
4. Provide Predictable Funding for Service Providers: Under
a social impact financing model, investors agree to fund
services up front for as long as the project lasts. This allows
service providers to make long-term budget plans and focus on
delivering high-quality services, instead of devoting time to
fundraising or negotiating government budgets on an annual
basis.
This proposal has garnered support from dozens of members
of the House, Republican and Democrat, and a similar proposal
has been included in recent Obama Administration budgets. The
approach has garnered over 40 bipartisan House cosponsors, and
a companion bill has also been introduced in the Senate by
Senators Hatch (R-UT) and Bennett (D-CO). As a result, the
Committee believes the federal government should further test
this social impact financing approach to help more individuals
in need and to ensure taxpayer dollars are only spent when
programs deliver results.
To fund social impact partnership projects, the bill
reserves $100 million in FY 2017 from the $608 million TANF
Contingency Fund. The FY 2017 President's Budget recommends
repurposing these funds, stating ``[t]he current TANF
Contingency Fund is not structured in a way that effectively
assists states during periods of economic distress. . . . The
Budget proposes to repurpose this funding for demonstrations
that will better serve low-income families.''\3\ Social impact
partnerships will better serve families in need, as federal
funds will only be spent on programs and services that have
been proved to make a real difference in the lives of those in
need.
---------------------------------------------------------------------------
\3\U.S. Department of Health and Human Services, FY 2017 Budget In
Brief. Available online: http://www.hhs.gov/about/budget/fy2017/budget-
in-brief/acf/mandatory/index.html#contingency.
---------------------------------------------------------------------------
Effective date
The provision is effective on October 1, 2016.
III. VOTES OF THE COMMITTEE
In compliance with the Rules of the House of
Representatives, the following statement is made concerning the
vote of the Committee on Ways and Means during the markup
consideration of H.R. 5170, the ``Social Impact Partnerships to
Pay for Results Act,'' on May 11, 2016.
An amendment in the nature of a substitute was offered by
Chairman Brady and adopted by voice vote (with a quorum being
present).
The vote on the amendment offered by Mr. Doggett to the
amendment in the nature of a substitute to H.R. 5170, which
would mandate a minimum share of program funding be used for
projects benefiting children, was not agreed to by a roll call
vote of 15 yeas to 24 nays (with a quorum being present). The
vote was as follows:
----------------------------------------------------------------------------------------------------------------
Representative Yea Nay Present Representative Yea Nay Present
----------------------------------------------------------------------------------------------------------------
Mr. Brady...................... ........ X ......... Mr. Levin........ X ........ .........
Mr. Johnson.................... ........ X ......... Mr. Rangel....... X ........ .........
Mr. Nunes...................... ........ X ......... Mr. McDermott.... X ........ .........
Mr. Tiberi..................... ........ X ......... Mr. Lewis........ X ........ .........
Mr. Reichert................... ........ X ......... Mr. Neal......... X ........ .........
Mr. Boustany................... ........ X ......... Mr. Becerra...... X ........ .........
Mr. Roskam..................... ........ X ......... Mr. Doggett...... X ........ .........
Mr. Price...................... ........ X ......... Mr. Thompson..... X ........ .........
Mr. Buchanan................... ........ X ......... Mr. Larson....... X ........ .........
Mr. Smith (NE)................. ........ X ......... Mr. Blumenauer... X ........ .........
Ms. Jenkins.................... ........ X ......... Mr. Kind......... X ........ .........
Mr. Paulsen.................... ........ X ......... Mr. Pascrell..... X ........ .........
Mr. Marchant................... ........ X ......... Mr. Crowley...... X ........ .........
Ms. Black...................... ........ X ......... Mr. Davis........ X ........ .........
Mr. Reed....................... ........ X ......... Ms. Sanchez...... X ........ .........
Mr. Young...................... ........ X
Mr. Kelly...................... ........ X
Mr. Renacci.................... ........ X
Mr. Meehan..................... ........ X
Ms. Noem....................... ........ X
Mr. Holding.................... ........ X
Mr. Smith (MO)................. ........ X
Mr. Dold....................... ........ X
Mr. Rice....................... ........ X
----------------------------------------------------------------------------------------------------------------
The bill was ordered favorably reported to the House of
Representatives as amended by a voice vote (with a quorum being
present).
IV. NEW BUDGET AUTHORITY AND TAX EXPENDITURES
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee states that the
bill involves no new budget authority or tax expenditure budget
authority.
V. COST ESTIMATE PREPARED BY THE CONGRESSIONAL BUDGET OFFICE
In compliance with clause 3(c)(3) of rule XIII of the Rules
of the House of Representatives, requiring a cost estimate
prepared by the CBO, the Committee sets forth the following
estimate and comparison prepared by the Director of the
Congressional Budget Office.
U.S. Congress,
Congressional Budget Office,
Washington, DC, May 16, 2016.
Hon. Kevin Brady,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 5170, the
Partnering for Results Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Susanne S.
Mehlman.
Sincerely,
Keith Hall.
H.R. 5170--Partnering for Results Act
Summary: H.R. 5170 would amend title IV of the Social
Security Act to provide funding to states and local governments
to support partnership projects. Such projects would have to
identify a social problem that states or localities hope to
address, such as improving high school graduation rates or
increasing employment among recipients of disability benefits.
Furthermore, the projects would have to be designed by states
or localities to produce measurable goals. The legislation also
would establish the Federal Interagency Council on Social
Impact Partnerships and the Commission on Social Impact
Partnerships to assist the Department of the Treasury in
implementing the projects. Finally, H.R. 5170 would reserve
$100 million of the $608 million already appropriated for the
Temporary Assistance for Needy Families (TANF) contingency fund
in 2017 to support the partnership projects.
CBO estimates that enacting this legislation would reduce
direct spending, on net, by $10 million over the 2017-2026
period. Because enacting the legislation would affect direct
spending, pay-as-you-go procedures apply. Enacting H.R. 5170
would not affect revenues. CBO estimates that enacting H.R.
5170 would not increase net direct spending or on-budget
deficits in any of the four consecutive 10-year periods
beginning in 2027.
H.R. 5170 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
Estimated cost to the Federal Government: The estimated
budgetary effect of this legislation is shown in the following
table. The impacts of this legislation fall within budget
function 600 (income security).
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
---------------------------------------------------------------------------------------------
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2017-2021 2017-2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
INCREASES OR DECREASES (-) IN DIRECT SPENDING
Estimated Budget Authority................................ -87 -3 5 5 5 5 5 10 20 25 -75 -10
Estimated Outlays......................................... -87 -3 5 5 5 5 5 10 20 25 -75 -10
--------------------------------------------------------------------------------------------------------------------------------------------------------
Basis of estimate: Under current law, CBO estimates that
outlays for the TANF contingency fund for 2017 will total $608
million over the 2017-2018 period. CBO estimates that the
spending associated with the partnership projects, as provided
for under the bill, would occur at a slower rate. Of the $100
million that would be reserved for partnership projects, up to
$10 million could be used for feasibility studies developed by
states to apply for project funding; the remaining funds could
be used by the Treasury to evaluate the projects and to provide
payments to states or localities if the projects meet certain
goals. Such funding would be available for 10 years following
enactment. Because there is uncertainty as to the extent states
conducting the projects will achieve the measureable outcomes
required for federal reimbursement, CBO estimates that not all
of the finds reserved for the program will be spent. In total,
we estimate that enacting this legislation would decrease net
direct spending from the contingency fund by $10 million over
the 2017-2026 period.
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays that are subject to those
pay-as-you-go procedures are shown in the following table.
CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 5170 AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON WAYS AND MEANS ON MAY 11, 2016
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year in millions of dollars--
----------------------------------------------------------------------------------------------------
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2016-2021 2016-2026
--------------------------------------------------------------------------------------------------------------------------------------------------------
NET INCREASES OR DECREASE (-) IN THE DEFICIT
Statutory Pay-As-You-Go Impact..................... 0 -87 -3 5 5 5 5 5 10 20 25 -75 -10
--------------------------------------------------------------------------------------------------------------------------------------------------------
Increase in long-term direct spending and deficits: CBO
estimates that enacting the legislation would not increase net
direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2027.
Intergovernmental and private-sector impact: H.R. 5170
contains no intergovernmental or private-sector mandates as
defined in the UMRA. Any costs to states associated with the
demonstration projects authorized in the bill would be incurred
voluntarily as conditions of assistance.
Estimate prepared by: Federal Costs: Susanne S. Mehlman;
Impact on State, Local, and Tribal Governments: Leo Lex; Impact
on the Private Sector: Paige Piper/Bach.
Estimate approved by: H. Samuel Papenfuss, Deputy Assistant
Director for Budget Analysis.
VI. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE
A. Committee Oversight Findings and Recommendations
With respect to clause 3(c)(1) of rule XIII of the Rules of
the House of Representatives, the Committee advises that the
findings and recommendations of the Committee, based on
oversight activities under clause 2(b)(1) of rule X of the
Rules of the House of Representatives, are incorporated in the
description portions of this report.
B. Statement of General Performance Goals and Objectives
With respect to the requirement of clause 3(c)(4) of rule
XIII of the Rules of the House of Representatives, the
performance goals and objectives of this legislation are to
provide federal funding to pay only for social services that
deliver results beginning October 1, 2016.
C. Applicability of House Rule XXI 5(b)
Rule XXI 5(b) of the Rules of the House of Representatives
provides, in part, that ``A bill or joint resolution,
amendment, or conference report carrying a Federal income tax
rate increase may not be considered as passed or agreed to
unless so determined by a vote of not less than three-fifths of
the Members voting, a quorum being present.'' The Committee has
carefully reviewed the bill, and states that the bill does not
involve any Federal income tax rate increases within the
meaning of the rule.
D. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits
With respect to clause 9 of rule XXI of the Rules of the
House of Representatives, the Committee has carefully reviewed
the provisions of the bill, and states that the provisions of
the bill do not contain any congressional earmarks, limited tax
benefits, or limited tariff benefits within the meaning of the
rule.
E. Duplication of Federal Programs
In compliance with Sec. 3(g)(2) of H. Res. 5 (114th
Congress), the Committee states that no provision of the bill
establishes or reauthorizes: (1) a program of the Federal
Government known to be duplicative of another Federal program;
(2) a program included in any report from the Government
Accountability Office to Congress pursuant to section 21 of
Public Law 111-139; or (3) a program related to a program
identified in the most recent Catalog of Federal Domestic
Assistance, published pursuant to the Federal Program
Information Act (Pub. L. No. 95-220, as amended by Pub. L. No.
98-169).
F. Disclosure of Directed Rule Makings
In compliance with Sec. 3(i) of H. Res. 5 (114th Congress),
the following statement is made concerning directed rule
makings: The Committee estimates that the bill requires no
directed rule makings within the meaning of such section.
VII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
A. Text of Existing Law Amended or Repealed by the Bill, as Reported
In compliance with clause 3(e)(1)(A) of rule XIII of the
Rules of the House of Representatives, the text of each section
proposed to be amended or repealed by the bill, as reported, is
shown below:
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e)(1)(A) of rule XIII of the
Rules of the House of Representatives, the text of each section
proposed to be amended or repealed by the bill, as reported, is
shown below:
SOCIAL SECURITY ACT
* * * * * * *
TITLE IV--GRANTS TO STATES FOR AID AND SERVICES TO NEEDY FAMILIES WITH
CHILDREN AND FOR CHILD-WELFARE SERVICES
PART A--BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY
FAMILIES
* * * * * * *
SEC. 403. GRANTS TO STATES.
(a) Grants.--
(1) Family assistance grant.--
(A) In general.--Each eligible State shall be
entitled to receive from the Secretary, for
fiscal year 2012, a grant in an amount equal to
the State family assistance grant.
(B) State family assistance grant.--The State
family assistance grant payable to a State for
a fiscal year shall be the amount that bears
the same ratio to the amount specified in
subparagraph (C) of this paragraph (as in
effect just before the enactment of the Welfare
Integrity and Data Improvement Act) as the
amount required to be paid to the State under
this paragraph (as so in effect) for fiscal
year 2002 (determined without regard to any
reduction pursuant to section 409 or 412(a)(1))
bears to the total amount required to be paid
under this paragraph for fiscal year 2002 (as
so determined).
(C) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for fiscal
year 2012 $16,566,542,000 for grants under this
paragraph.
(2) Healthy marriage promotion and responsible
fatherhood grants.--
(A) In general.--
(i) Use of funds.--Subject to
subparagraphs (B), (C), and (E), the
Secretary may use the funds made
available under subparagraph (D) for
the purpose of conducting and
supporting research and demonstration
projects by public or private entities,
and providing technical assistance to
States, Indian tribes and tribal
organizations, and such other entities
as the Secretary may specify that are
receiving a grant under another
provision of this part.
(ii) Limitations.--The Secretary may
not award funds made available under
this paragraph on a noncompetitive
basis, and may not provide any such
funds to an entity for the purpose of
carrying out healthy marriage promotion
activities or for the purpose of
carrying out activities promoting
responsible fatherhood unless the
entity has submitted to the Secretary
an application (or, in the case of an
entity seeking funding to carry out
healthy marriage promotion activities
and activities promoting responsible
fatherhood, a combined application that
contains assurances that the entity
will carry out such activities under
separate programs and shall not combine
any funds awarded to carry out either
such activities) which--
(I) describes--
(aa) how the programs
or activities proposed
in the application will
address, as
appropriate, issues of
domestic violence; and
(bb) what the
applicant will do, to
the extent relevant, to
ensure that
participation in the
programs or activities
is voluntary, and to
inform potential
participants that their
participation is
voluntary; and
(II) contains a commitment by
the entity--
(aa) to not use the
funds for any other
purpose; and
(bb) to consult with
experts in domestic
violence or relevant
community domestic
violence coalitions in
developing the programs
and activities.
(iii) Healthy marriage promotion
activities.--In clause (ii), the term
``healthy marriage promotion
activities'' means the following:
(I) Public advertising
campaigns on the value of
marriage and the skills needed
to increase marital stability
and health.
(II) Education in high
schools on the value of
marriage, relationship skills,
and budgeting.
(III) Marriage education,
marriage skills, and
relationship skills programs,
that may include parenting
skills, financial management,
conflict resolution, and job
and career advancement.
(IV) Pre-marital education
and marriage skills training
for engaged couples and for
couples or individuals
interested in marriage.
(V) Marriage enhancement and
marriage skills training
programs for married couples.
(VI) Divorce reduction
programs that teach
relationship skills.
(VII) Marriage mentoring
programs which use married
couples as role models and
mentors in at-risk communities.
(VIII) Programs to reduce the
disincentives to marriage in
means-tested aid programs, if
offered in conjunction with any
activity described in this
subparagraph.
(B) Limitation on use of funds for
demonstration projects for coordination of
provision of child welfare and tanf services to
tribal families at risk of child abuse or
neglect.--
(i) In general.--Of the amounts made
available under subparagraph (D) for a
fiscal year, the Secretary may not
award more than $2,000,000 on a
competitive basis to fund demonstration
projects designed to test the
effectiveness of tribal governments or
tribal consortia in coordinating the
provision to tribal families at risk of
child abuse or neglect of child welfare
services and services under tribal
programs funded under this part.
(ii) Limitation on use of funds.--A
grant made pursuant to clause (i) to
such a project shall not be used for
any purpose other than--
(I) to improve case
management for families
eligible for assistance from
such a tribal program;
(II) for supportive services
and assistance to tribal
children in out-of-home
placements and the tribal
families caring for such
children, including families
who adopt such children; and
(III) for prevention services
and assistance to tribal
families at risk of child abuse
and neglect.
(iii) Reports.--The Secretary may
require a recipient of funds awarded
under this subparagraph to provide the
Secretary with such information as the
Secretary deems relevant to enable the
Secretary to facilitate and oversee the
administration of any project for which
funds are provided under this
subparagraph.
(C) Limitation on use of funds for activities
promoting responsible fatherhood.--
(i) In general.--Of the amounts made
available under subparagraph (D) for a
fiscal year, the Secretary may not
award more than $75,000,000 on a
competitive basis to States,
territories, Indian tribes and tribal
organizations, and public and nonprofit
community entities, including religious
organizations, for activities promoting
responsible fatherhood.
(ii) Activities promoting responsible
fatherhood.--In this paragraph, the
term ``activities promoting responsible
fatherhood'' means the following:
(I) Activities to promote
marriage or sustain marriage
through activities such as
counseling, mentoring,
disseminating information about
the benefits of marriage and 2-
parent involvement for
children, enhancing
relationship skills, education
regarding how to control
aggressive behavior,
disseminating information on
the causes of domestic violence
and child abuse, marriage
preparation programs,
premarital counseling, marital
inventories, skills-based
marriage education, financial
planning seminars, including
improving a family's ability to
effectively manage family
business affairs by means such
as education, counseling, or
mentoring on matters related to
family finances, including
household management,
budgeting, banking, and
handling of financial
transactions and home
maintenance, and divorce
education and reduction
programs, including mediation
and counseling.
(II) Activities to promote
responsible parenting through
activities such as counseling,
mentoring, and mediation,
disseminating information about
good parenting practices,
skills-based parenting
education, encouraging child
support payments, and other
methods.
(III) Activities to foster
economic stability by helping
fathers improve their economic
status by providing activities
such as work first services,
job search, job training,
subsidized employment, job
retention, job enhancement, and
encouraging education,
including career-advancing
education, dissemination of
employment materials,
coordination with existing
employment services such as
welfare-to-work programs,
referrals to local employment
training initiatives, and other
methods.
(IV) Activities to promote
responsible fatherhood that are
conducted through a contract
with a nationally recognized,
nonprofit fatherhood promotion
organization, such as the
development, promotion, and
distribution of a media
campaign to encourage the
appropriate involvement of
parents in the life of any
child and specifically the
issue of responsible
fatherhood, and the development
of a national clearinghouse to
assist States and communities
in efforts to promote and
support marriage and
responsible fatherhood.
(D) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for fiscal
year 2012 for expenditure in accordance with
this paragraph--
(i) $75,000,000 for awarding funds
for the purpose of carrying out healthy
marriage promotion activities; and
(ii) $75,000,000 for awarding funds
for the purpose of carrying out
activities promoting responsible
fatherhood.
If the Secretary makes an award under
subparagraph (B)(i) for fiscal year 2012, the
funds for such award shall be taken in equal
portion from the amounts appropriated under
clauses (i) and (ii).
(E) Preference.--In awarding funds under this
paragraph for fiscal year 2011, the Secretary
shall give preference to entities that were
awarded funds under this paragraph for any
prior fiscal year and that have demonstrated
the ability to successfully carry out the
programs funded under this paragraph.
(3) Supplemental grant for population increases in
certain states.--
(A) In general.--Each qualifying State shall,
subject to subparagraph (F), be entitled to
receive from the Secretary--
(i) for fiscal year 1998 a grant in
an amount equal to 2.5 percent of the
total amount required to be paid to the
State under former section 403 (as in
effect during fiscal year 1994) for
fiscal year 1994; and
(ii) for each of fiscal years 1999,
2000, and 2001, a grant in an amount
equal to the sum of--
(I) the amount (if any)
required to be paid to the
State under this paragraph for
the immediately preceding
fiscal year; and
(II) 2.5 percent of the sum
of--
(aa) the total amount
required to be paid to
the State under former
section 403 (as in
effect during fiscal
year 1994) for fiscal
year 1994; and
(bb) the amount (if
any) required to be
paid to the State under
this paragraph for the
fiscal year preceding
the fiscal year for
which the grant is to
be made.
(B) Preservation of grant without increases
for states failing to remain qualifying
states.--Each State that is not a qualifying
State for a fiscal year specified in
subparagraph (A)(ii) but was a qualifying State
for a prior fiscal year shall, subject to
subparagraph (F), be entitled to receive from
the Secretary for the specified fiscal year, a
grant in an amount equal to the amount required
to be paid to the State under this paragraph
for the most recent fiscal year for which the
State was a qualifying State.
(C) Qualifying state.--
(i) In general.--For purposes of this
paragraph, a State is a qualifying
State for a fiscal year if--
(I) the level of welfare
spending per poor person by the
State for the immediately
preceding fiscal year is less
than the national average level
of State welfare spending per
poor person for such preceding
fiscal year; and
(II) the population growth
rate of the State (as
determined by the Bureau of the
Census) for the most recent
fiscal year for which
information is available
exceeds the average population
growth rate for all States (as
so determined) for such most
recent fiscal year.
(ii) State must qualify in fiscal
year 1998.--Notwithstanding clause (i),
a State shall not be a qualifying State
for any fiscal year after 1998 by
reason of clause (i) if the State is
not a qualifying State for fiscal year
1998 by reason of clause (i).
(iii) Certain states deemed
qualifying states.--For purposes of
this paragraph, a State is deemed to be
a qualifying State for fiscal years
1998, 1999, 2000, and 2001 if--
(I) the level of welfare
spending per poor person by the
State for fiscal year 1994 is
less than 35 percent of the
national average level of State
welfare spending per poor
person for fiscal year 1994; or
(II) the population of the
State increased by more than 10
percent from April 1, 1990 to
July 1, 1994, according to the
population estimates in
publication CB94-204 of the
Bureau of the Census.
(D) Definitions.--As used in this paragraph:
(i) Level of welfare spending per
poor person.--The term ``level of State
welfare spending per poor person''
means, with respect to a State and a
fiscal year--
(I) the sum of--
(aa) the total amount
required to be paid to
the State under former
section 403 (as in
effect during fiscal
year 1994) for fiscal
year 1994; and
(bb) the amount (if
any) paid to the State
under this paragraph
for the immediately
preceding fiscal year;
divided by
(II) the number of
individuals, according to the
1990 decennial census, who were
residents of the State and
whose income was below the
poverty line.
(ii) National average level of state
welfare spending per poor person.--The
term ``national average level of State
welfare spending per poor person''
means, with respect to a fiscal year,
an amount equal to--
(I) the total amount required
to be paid to the States under
former section 403 (as in
effect during fiscal year 1994)
for fiscal year 1994; divided
by
(II) the number of
individuals, according to the
1990 decennial census, who were
residents of any State and
whose income was below the
poverty line.
(iii) State.--The term ``State''
means each of the 50 States of the
United States and the District of
Columbia.
(E) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for fiscal
years 1998, 1999, 2000, and 2001 such sums as
are necessary for grants under this paragraph,
in a total amount not to exceed $800,000,000.
(F) Grants reduced pro rata if insufficient
appropriations.--If the amount appropriated
pursuant to this paragraph for a fiscal year
(or portion of a fiscal year) is less than the
total amount of payments otherwise required to
be made under this paragraph for the fiscal
year (or portion of the fiscal year), then the
amount otherwise payable to any State for the
fiscal year (or portion of the fiscal year)
under this paragraph shall be reduced by a
percentage equal to the amount so appropriated
divided by such total amount.
(G) Budget scoring.--Notwithstanding section
257(b)(2) of the Balanced Budget and Emergency
Deficit Control Act of 1985, the baseline shall
assume that no grant shall be made under this
paragraph after fiscal year 2001.
(H) Reauthorization.--Notwithstanding any
other provision of this paragraph--
(i) any State that was a qualifying
State under this paragraph for fiscal
year 2001 or any prior fiscal year
shall be entitled to receive from the
Secretary for each of fiscal years 2002
and 2003 a grant in an amount equal to
the amount required to be paid to the
State under this paragraph for the most
recent fiscal year in which the State
was a qualifying State;
(ii) subparagraph (G) shall be
applied as if ``fiscal year 2011'' were
substituted for ``fiscal year 2001'';
(iii) out of any money in the
Treasury of the United States not
otherwise appropriated, there are
appropriated for each of fiscal years
2002 and 2003 such sums as are
necessary for grants under this
subparagraph.
(4) Bonus to reward high performance states.--
(A) In general.--The Secretary shall make a
grant pursuant to this paragraph to each State
for each bonus year for which the State is a
high performing State.
(B) Amount of grant.--
(i) In general.--Subject to clause
(ii) of this subparagraph, the
Secretary shall determine the amount of
the grant payable under this paragraph
to a high performing State for a bonus
year, which shall be based on the score
assigned to the State under
subparagraph (D)(i) for the fiscal year
that immediately precedes the bonus
year.
(ii) Limitation.--The amount payable
to a State under this paragraph for a
bonus year shall not exceed 5 percent
of the State family assistance grant.
(C) Formula for measuring state
performance.--Not later than 1 year after the
date of the enactment of the Personal
Responsibility and Work Opportunity
Reconciliation Act of 1996, the Secretary, in
consultation with the National Governors'
Association and the American Public Welfare
Association, shall develop a formula for
measuring State performance in operating the
State program funded under this part so as to
achieve the goals set forth in section 401(a).
(D) Scoring of state performance; setting of
performance thresholds.--For each bonus year,
the Secretary shall--
(i) use the formula developed under
subparagraph (C) to assign a score to
each eligible State for the fiscal year
that immediately precedes the bonus
year; and
(ii) prescribe a performance
threshold in such a manner so as to
ensure that--
(I) the average annual total
amount of grants to be made
under this paragraph for each
bonus year equals $200,000,000;
and
(II) the total amount of
grants to be made under this
paragraph for all bonus years
equals $1,000,000,000.
(E) Definitions.--As used in this paragraph:
(i) Bonus year.--The term ``bonus
year'' means fiscal years 1999, 2000,
2001, 2002, and 2003.
(ii) High performing state.--The term
``high performing State'' means, with
respect to a bonus year, an eligible
State whose score assigned pursuant to
subparagraph (D)(i) for the fiscal year
immediately preceding the bonus year
equals or exceeds the performance
threshold prescribed under subparagraph
(D)(ii) for such preceding fiscal year.
(F) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for fiscal
years 1999 through 2003 $1,000,000,000 for
grants under this paragraph.
(5) Welfare-to-work grants.--
(A) Formula grants.--
(i) Entitlement.--A State shall be
entitled to receive from the Secretary
of Labor a grant for each fiscal year
specified in subparagraph (H) of this
paragraph for which the State is a
welfare-to-work State, in an amount
that does not exceed the lesser of--
(I) 2 times the total of the
expenditures by the State
(excluding qualified State
expenditures (as defined in
section 409(a)(7)(B)(i)) and
any expenditure described in
subclause (I), (II), or (IV) of
section 409(a)(7)(B)(iv))
during the period permitted
under subparagraph (C)(vii) of
this paragraph for the
expenditure of funds under the
grant for activities described
in subparagraph (C)(i) of this
paragraph; or
(II) the allotment of the
State under clause (iii) of
this subparagraph for the
fiscal year.
(ii) Welfare-to-work state.--A State
shall be considered a welfare-to-work
State for a fiscal year for purposes of
this paragraph if the Secretary of
Labor determines that the State meets
the following requirements:
(I) The State has submitted
to the Secretary of Labor and
the Secretary of Health and
Human Services (in the form of
an addendum to the State plan
submitted under section 402) a
plan which--
(aa) describes how,
consistent with this
subparagraph, the State
will use any funds
provided under this
subparagraph during the
fiscal year;
(bb) specifies the
formula to be used
pursuant to clause (vi)
to distribute funds in
the State, and
describes the process
by which the formula
was developed;
(cc) contains
evidence that the plan
was developed in
consultation and
coordination with
appropriate entitites
in sub-State areas;
(dd) contains
assurances by the
Governor of the State
that the private
industry council (and
any alternate agency
designated by the
Governor under item
(ee)) for a service
delivery area in the
State will coordinate
the expenditure of any
funds provided under
this subparagraph for
the benefit of the
service delivery area
with the expenditure of
the funds provided to
the State under section
403(a)(1);
(ee) if the Governor
of the State desires to
have an agency other
than a private industry
council administer the
funds provided under
this subparagraph for
the benefit of 1 or
more service delivery
areas in the State,
contains an application
to the Secretary of
Labor for a waiver of
clause (vii)(I) with
respect to the area or
areas in order to
permit an alternate
agency designated by
the Governor to so
administer the funds;
and
(ff) describes how
the State will ensure
that a private industry
council to which
information is
disclosed pursuant to
section 403(a)(5)(K) or
454A(f)(5) has
procedures for
safeguarding the
information and for
ensuring that the
information is used
solely for the purpose
described in that
section.
(II) The State has provided
to the Secretary of Labor an
estimate of the amount that the
State intends to expend during
the period permitted under
subparagraph (C)(vii) of this
paragraph for the expenditure
of funds under the grant
(excluding expenditures
described in section
409(a)(7)(B)(iv) (other than
subclause (III) thereof))
pursuant to this paragraph.
(III) The State has agreed to
negotiate in good faith with
the Secretary of Health and
Human Services with respect to
the substance and funding of
any evaluation under section
413(j), and to cooperate with
the conduct of any such
evaluation.
(IV) The State is an eligible
State for the fiscal year.
(V) The State certifies that
qualified State expenditures
(within the meaning of section
409(a)(7)) for the fiscal year
will be not less than the
applicable percentage of
historic State expenditures
(within the meaning of section
409(a)(7)) with respect to the
fiscal year.
(iii) Allotments to welfare-to-work
states.--
(I) In general.--Subject to
this clause, the allotment of a
welfare-to-work State for a
fiscal year shall be the
available amount for the fiscal
year, multiplied by the State
percentage for the fiscal year.
(II) Minimum allotment.--The
allotment of a welfare-to-work
State (other than Guam, the
Virgin Islands, or American
Samoa) for a fiscal year shall
not be less than 0.25 percent
of the available amount for the
fiscal year.
(III) Pro rata reduction.--
Subject to subclause (II), the
Secretary of Labor shall make
pro rata reductions in the
allotments to States under this
clause for a fiscal year as
necessary to ensure that the
total of the allotments does
not exceed the available amount
for the fiscal year.
(iv) Available amount.--As used in
this subparagraph, the term ``available
amount'' means, for a fiscal year, the
sum of--
(I) 75 percent of the sum
of--
(aa) the amount
specified in
subparagraph (H) for
the fiscal year, minus
the total of the
amounts reserved
pursuant to
subparagraphs (E), (F),
and (G) for the fiscal
year; and
(bb) any amount
reserved pursuant to
subparagraph (E) for
the immediately
preceding fiscal year
that has not been
obligated; and
(II) any available amount for
the immediately preceding
fiscal year that has not been
obligated by a State, other
than funds reserved by the
State for distribution under
clause (vi)(III) and funds
distributed pursuant to clause
(vi)(I) in any State in which
the service delivery area is
the State.
(v) State percentage.--As used in
clause (iii), the term ``State
percentage'' means, with respect to a
fiscal year, \1/2\ of the sum of--
(I) the percentage
represented by the number of
individuals in the State whose
income is less than the poverty
line divided by the number of
such individuals in the United
States; and
(II) the percentage
represented by the number of
adults who are recipients of
assistance under the State
program funded under this part
divided by the number of adults
in the United States who are
recipients of assistance under
any State program funded under
this part.
(vi) Procedure for distribution of
funds within states.--
(I) Allocation formula.--A
State to which a grant is made
under this subparagraph shall
devise a formula for allocating
not less than 85 percent of the
amount of the grant among the
service delivery areas in the
State, which--
(aa) determines the
amount to be allocated
for the benefit of a
service delivery area
in proportion to the
number (if any) by
which the population of
the area with an income
that is less than the
poverty line exceeds
7.5 percent of the
total population of the
area, relative to such
number for all such
areas in the State with
such an excess, and
accords a weight of not
less than 50 percent to
this factor;
(bb) may determine
the amount to be
allocated for the
benefit of such an area
in proportion to the
number of adults
residing in the area
who have been
recipients of
assistance under the
State program funded
under this part
(whether in effect
before or after the
amendments made by
section 103(a) of the
Personal Responsibility
and Work Opportunity
Reconciliation Act of
1996 first applied to
the State) for at least
30 months (whether or
not consecutive)
relative to the number
of such adults residing
in the State; and
(cc) may determine
the amount to be
allocated for the
benefit of such an area
in proportion to the
number of unemployed
individuals residing in
the area relative to
the number of such
individuals residing in
the State.
(II) Distribution of funds.--
(aa) In general.--If
the amount allocated by
the formula to a
service delivery area
is at least $100,000,
the State shall
distribute the amount
to the entity
administering the grant
in the area.
(bb) Special rule.--
If the amount allocated
by the formula to a
service delivery area
is less than $100,000,
the sum shall be
available for
distribution in the
State under subclause
(III) during the fiscal
year.
(III) Projects to help long-
term recipients of assistance
enter unsubsidized jobs.--The
Governor of a State to which a
grant is made under this
subparagraph may distribute not
more than 15 percent of the
grant funds (plus any amount
required to be distributed
under this subclause by reason
of subclause (II)(bb)) to
projects that appear likely to
help long-term recipients of
assistance under the State
program funded under this part
(whether in effect before or
after the amendments made by
section 103(a) of the Personal
Responsibility and Work
Opportunity Reconciliation Act
of 1996 first applied to the
State) enter unsubsidized
employment.
(vii) Administration.--
(I) Private industry
councils.--The private industry
council for a service delivery
area in a State shall have sole
authority, in coordination with
the chief elected official (as
defined in section 3 of the
Workforce Innovation and
Opportunity Act) of the area,
to expend the amounts
distributed under clause
(vi)(II)(aa) for the benefit of
the service delivery area, in
accordance with the assurances
described in clause (ii)(I)(dd)
provided by the Governor of the
State.
(II) Enforcement of
coordination of expenditures
with other expenditures under
this part.--Notwithstanding
subclause (I) of this clause,
on a determination by the
Governor of a State that a
private industry council (or an
alternate agency described in
clause (ii)(I)(dd)) has used
funds provided under this
subparagraph in a manner
inconsistent with the
assurances described in clause
(ii)(I)(dd)--
(aa) the private
industry council (or
such alternate agency)
shall remit the funds
to the Governor; and
(bb) the Governor
shall apply to the
Secretary of Labor for
a waiver of subclause
(I) of this clause with
respect to the service
delivery area or areas
involved in order to
permit an alternate
agency designated by
the Governor to
administer the funds in
accordance with the
assurances.
(III) Authority to permit use
of alternate administering
agency.--The Secretary of Labor
shall approve an application
submitted under clause
(ii)(I)(ee) or subclause
(II)(bb) of this clause to
waive subclause (I) of this
clause with respect to 1 or
more service delivery areas if
the Secretary determines that
the alternate agency designated
in the application would
improve the effectiveness or
efficiency of the
administration of amounts
distributed under clause
(vi)(II)(aa) for the benefit of
the area or areas.
(viii) Data to be used in determining
the number of adult tanf recipients.--
For purposes of this subparagraph, the
number of adult recipients of
assistance under a State program funded
under this part for a fiscal year shall
be determined using data for the most
recent 12-month period for which such
data is available before the beginning
of the fiscal year.
(ix) Reversion of unallotted formula
funds.--If at the end of any fiscal
year any funds available under this
subparagraph have not been allotted due
to a determination by the Secretary
that any State has not met the
requirements of clause (ii), such funds
shall be transferred to the General
Fund of the Treasury of the United
States.
(B) Competitive grants.--
(i) In general.--The Secretary of
Labor shall award grants in accordance
with this subparagraph, in fiscal years
1998 and 1999, for projects proposed by
eligible applicants, based on the
following:
(I) The effectiveness of the
proposal in--
(aa) expanding the
base of knowledge about
programs aimed at
moving recipients of
assistance under State
programs funded under
this part who are least
job ready into
unsubsidized
employment.
(bb) moving
recipients of
assistance under State
programs funded under
this part who are least
job ready into
unsubsidized
employment; and
(cc) moving
recipients of
assistance under State
programs funded under
this part who are least
job ready into
unsubsidized
employment, even in
labor markets that have
a shortage of low-skill
jobs.
(II) At the discretion of the
Secretary of Labor, any of the
following:
(aa) The history of
success of the
applicant in moving
individuals with
multiple barriers into
work.
(bb) Evidence of the
applicant's ability to
leverage private,
State, and local
resources.
(cc) Use by the
applicant of State and
local resources beyond
those required by
subparagraph (A).
(dd) Plans of the
applicant to coordinate
with other
organizations at the
local and State level.
(ee) Use by the
applicant of current or
former recipients of
assistance under a
State program funded
under this part as
mentors, case managers,
or service providers.
(ii) Eligible applicants.--As used in
clause (i), the term ``eligible
applicant'' means a private industry
council for a service delivery area in
a State, a political subdivision of a
State, or a private entity applying in
conjunction with the private industry
council for such a service delivery
area or with such a political
subdivision, that submits a proposal
developed in consultation with the
Governor of the State.
(iii) Determination of grant
amount.--In determining the amount of a
grant to be made under this
subparagraph for a project proposed by
an applicant, the Secretary of Labor
shall provide the applicant with an
amount sufficient to ensure that the
project has a reasonable opportunity to
be successful, taking into account the
number of long-term recipients of
assistance under a State program funded
under this part, the level of
unemployment, the job opportunities and
job growth, the poverty rate, and such
other factors as the Secretary of Labor
deems appropriate, in the area to be
served by the project.
(iv) Consideration of needs of rural
areas and cities with large
concentrations of poverty.--In making
grants under this subparagraph, the
Secretary of Labor shall consider the
needs of rural areas and cities with
large concentrations of residents with
an income that is less than the poverty
line.
(v) Funding.--For grants under this
subparagraph for each fiscal year
specified in subparagraph (H), there
shall be available to the Secretary of
Labor an amount equal to the sum of--
(I) 25 percent of the sum
of--
(aa) the amount
specified in
subparagraph (H) for
the fiscal year, minus
the total of the
amounts reserved
pursuant to
subparagraphs (E), (F),
and (G) for the fiscal
year; and
(bb) any amount
reserved pursuant to
subparagraph (E) for
the immediately
preceding fiscal year
that has not been
obligated; and
(II) any amount available for
grants under this subparagraph
for the immediately preceding
fiscal year that has not been
obligated.
(C) Limitations on use of funds.--
(i) Allowable activities.--An entity
to which funds are provided under this
paragraph shall use the funds to move
individuals into and keep individuals
in lasting unsubsidized employment by
means of any of the following:
(I) The conduct and
administration of community
service or work experience
programs.
(II) Job creation through
public or private sector
employment wage subsidies.
(III) On-the-job training.
(IV) Contracts with public or
private providers of readiness,
placement, and post-employment
services, or if the entity is
not a private industry council
or workforce investment board,
the direct provision of such
services.
(V) Job vouchers for
placement, readiness, and
postemployment services.
(VI) Job retention or support
services if such services are
not otherwise available.
(VII) Not more than 6 months
of vocational educational or
job training.
Contracts or vouchers for job placement
services supported by such funds must
require that at least \1/2\ of the
payment occur after an eligible
individual placed into the workforce
has been in the workforce for 6 months.
(ii) General eligibility.--An entity
that operates a project with funds
provided under this paragraph may
expend funds provided to the project
for the benefit of recipients of
assistance under the program funded
under this part of the State in which
the entity is located who--
(I) has received assistance
under the State program funded
under this part (whether in
effect before or after the
amendments made by section 103
of the Personal Responsibility
and Work Opportunity
Reconciliation Act of 1996
first apply to the State) for
at least 30 months (whether or
not consecutive); or
(II) within 12 months, will
become ineligible for
assistance under the State
program funded under this part
by reason of a durational limit
on such assistance, without
regard to any exemption
provided pursuant to section
408(a)(7)(C) that may apply to
the individual.
(iii) Noncustodial parents.--An
entity that operates a project with
funds provided under this paragraph may
use the funds to provide services in a
form described in clause (i) to
noncustodial parents with respect to
whom the requirements of the following
subclauses are met:
(I) The noncustodial parent
is unemployed, underemployed,
or having difficulty in paying
child support obligations.
(II) At least 1 of the
following applies to a minor
child of the noncustodial
parent (with preference in the
determination of the
noncustodial parents to be
provided services under this
paragraph to be provided by the
entity to those noncustodial
parents with minor children who
meet, or who have custodial
parents who meet, the
requirements of item (aa)):
(aa) The minor child
or the custodial parent
of the minor child
meets the requirements
of subclause (I) or
(II) of clause (ii).
(bb) The minor child
is eligible for, or is
receiving, benefits
under the program
funded under this part.
(cc) The minor child
received benefits under
the program funded
under this part in the
12-month period
preceding the date of
the determination but
no longer receives such
benefits.
(dd) The minor child
is eligible for, or is
receiving, assistance
under the Food and
Nutrition Act of 2008,
benefits under the
supplemental security
income program under
title XVI of this Act,
medical assistance
under title XIX of this
Act, or child health
assistance under title
XXI of this Act.
(III) In the case of a
noncustodial parent who becomes
enrolled in the project on or
after the date of the enactment
of this clause, the
noncustodial parent is in
compliance with the terms of an
oral or written personal
responsibility contract entered
into among the noncustodial
parent, the entity, and (unless
the entity demonstrates to the
Secretary that the entity is
not capable of coordinating
with such agency) the agency
responsible for administering
the State plan under part D,
which was developed taking into
account the employment and
child support status of the
noncustodial parent, which was
entered into not later than 30
(or, at the option of the
entity, not later than 90) days
after the noncustodial parent
was enrolled in the project,
and which, at a minimum,
includes the following:
(aa) A commitment by
the noncustodial parent
to cooperate, at the
earliest opportunity,
in the establishment of
the paternity of the
minor child, through
voluntary
acknowledgement or
other procedures, and
in the establishment of
a child support order.
(bb) A commitment by
the noncustodial parent
to cooperate in the
payment of child
support for the minor
child, which may
include a modification
of an existing support
order to take into
account the ability of
the noncustodial parent
to pay such support and
the participation of
such parent in the
project.
(cc) A commitment by
the noncustodial parent
to participate in
employment or related
activities that will
enable the noncustodial
parent to make regular
child support payments,
and if the noncustodial
parent has not attained
20 years of age, such
related activities may
include completion of
high school, a general
equivalency degree, or
other education
directly related to
employment.
(dd) A description of
the services to be
provided under this
paragraph, and a
commitment by the
noncustodial parent to
participate in such
services, that are
designed to assist the
noncustodial parent
obtain and retain
employment, increase
earnings, and enhance
the financial and
emotional contributions
to the well-being of
the minor child.
In order to protect custodial
parents and children who may be
at risk of domestic violence,
the preceding provisions of
this subclause shall not be
construed to affect any other
provision of law requiring a
custodial parent to cooperate
in establishing the paternity
of a child or establishing or
enforcing a support order with
respect to a child, or
entitling a custodial parent to
refuse, for good cause, to
provide such cooperation as a
condition of assistance or
benefit under any program,
shall not be construed to
require such cooperation by the
custodial parent as a condition
of participation of either
parent in the program
authorized under this
paragraph, and shall not be
construed to require a
custodial parent to cooperate
with or participate in any
activity under this clause. The
entity operating a project
under this clause with funds
provided under this paragraph
shall consult with domestic
violence prevention and
intervention organizations in
the development of the project.
(iv) Targeting of hard to employ
individuals with characteristics
associated with long-term welfare
dependence.--An entity that operates a
project with funds provided under this
paragraph may expend not more than 30
percent of all funds provided to the
project for programs that provide
assistance in a form described in
clause (i)--
(I) to recipients of
assistance under the program
funded under this part of the
State in which the entity is
located who have
characteristics associated with
long-term welfare dependence
(such as school dropout, teen
pregnancy, or poor work
history), including, at the
option of the State, by
providing assistance in such
form as a condition of
receiving assistance under the
State program funded under this
part;
(II) to children--
(aa) who have
attained 18 years of
age but not 25 years of
age; and
(bb) who, before
attaining 18 years of
age, were recipients of
foster care maintenance
payments (as defined in
section 475(4)) under
part E or were in
foster care under the
responsibility of a
State;
(III) to recipients of
assistance under the State
program funded under this part,
determined to have significant
barriers to self-sufficiency,
pursuant to criteria
established by the local
private industry council; or
(IV) to custodial parents
with incomes below 100 percent
of the poverty line (as defined
in section 673(2) of the
Omnibus Budget Reconciliation
Act of 1981, including any
revision required by such
section, applicable to a family
of the size involved).
To the extent that the entity does not
expend such funds in accordance with
the preceding sentence, the entity
shall expend such funds in accordance
with clauses (ii) and (iii) and, as
appropriate, clause (v).
(v) Authority to provide work-related
services to individuals who have
reached the 5 year limit.--An entity
that operates a project with funds
provided under this paragraph may use
the funds to provide assistance in a
form described in clause (i) of this
subparagraph to, or for the benefit of,
individuals who (but for section
408(a)(7)) would be eligible for
assistance under the program funded
under this part of the State in which
the entity is located.
(vi) Relationship to other provisions
of this part.--
(I) Rules governing use of
funds.--The rules of section
404, other than subsections
(b), (f), and (h) of section
404, shall not apply to a grant
made under this paragraph.
(II) Rules governing payments
to states.--The Secretary of
Labor shall carry out the
functions otherwise assigned by
section 405 to the Secretary of
Health and Human Services with
respect to the grants payable
under this paragraph.
(III) Administration.--
Section 416 shall not apply to
the programs under this
paragraph.
(vii) Prohibition against use of
grant funds for any other fund matching
requirement.--An entity to which funds
are provided under this paragraph shall
not use any part of the funds, nor any
part of State expenditures made to
match the funds, to fulfill any
obligation of any State, political
subdivision, or private industry
council to contribute funds under
section 403(b) or 418 or any other
provision of this Act or other Federal
law.
(viii) Deadline for expenditure.--An
entity to which funds are provided
under this paragraph shall remit to the
Secretary of Labor any part of the
funds that are not expended within 5
years after the date the funds are so
provided.
(ix) Regulations.--Within 90 days
after the date of the enactment of this
paragraph, the Secretary of Labor,
after consultation with the Secretary
of Health and Human Services and the
Secretary of Housing and Urban
Development, shall prescribe such
regulations as may be necessary to
implement this paragraph.
(x) Reporting requirements.--The
Secretary of Labor, in consultation
with the Secretary of Health and Human
Services, States, and organizations
that represent State or local
governments, shall establish
requirements for the collection and
maintenance of financial and
participant information and the
reporting of such information by
entities carrying out activities under
this paragraph.
(D) Definitions.--
(i) Individuals with income less than
the poverty line.--For purposes of this
paragraph, the number of individuals
with an income that is less than the
poverty line shall be determined for a
fiscal year--
(I) based on the methodology
used by the Bureau of the
Census to produce and publish
intercensal poverty data for
States and counties (or, in the
case of Puerto Rico, the Virgin
Islands, Guam, and American
Samoa, other poverty data
selected by the Secretary of
Labor); and
(II) using data for the most
recent year for which such data
is available before the
beginning of the fiscal year.
(ii) Private industry council.--As
used in this paragraph, the term
``private industry council'' means,
with respect to a service delivery
area, the private industry council or
local workforce development board
established for the local workforce
development area pursuant to title I of
the Workforce Innovation and
Opportunity Act, as appropriate.
(iii) Service delivery area.--As used
in this paragraph, the term ``service
delivery area'' shall have the meaning
given such term for purposes of the Job
Training Partnership Act or.
(E) Funding for indian tribes.--1 percent of
the amount specified in subparagraph (H) for
fiscal year 1998 and $15,000,000 of the amount
so specified for fiscal year 1999 shall be
reserved for grants to Indian tribes under
section 412(a)(3).
(F) Funding for evaluations of welfare-to-
work programs.--0.6 percent of the amount
specified in subparagraph (H) for fiscal year
1998 and $9,000,000 of the amount so specified
for fiscal year 1999 shall be reserved for use
by the Secretary to carry out section 413(j).
(G) Funding for evaluation of abstinence
education programs.--
(i) In general.--0.2 percent of the
amount specified in subparagraph (H)
for fiscal year 1998 and $3,000,000 of
the amount so specified for fiscal year
1999 shall be reserved for use by the
Secretary to evaluate programs under
section 510, directly or through
grants, contracts, or interagency
agreements.
(ii) Authority to use funds for
evaluations of welfare-to-work
programs.--Any such amount not required
for such evaluations shall be available
for use by the Secretary to carry out
section 413(j).
(iii) Deadline for outlays.--Outlays
from funds used pursuant to clause (i)
for evaluation of programs under
section 510 shall not be made after
fiscal year 2005.
(iv) Interim report.--Not later than
January 1, 2002, the Secretary shall
submit to the Congress an interim
report on the evaluations referred to
in clause (i).
(H) Appropriations.--
(i) In general.--Out of any money in
the Treasury of the United States not
otherwise appropriated, there are
appropriated for grants under this
paragraph--
(I) $1,500,000,000 for fiscal
year 1998; and
(II) $1,400,000,000 for
fiscal year 1999.
(ii) Availability.--The amounts made
available pursuant to clause (i) shall
remain available for such period as is
necessary to make the grants provided
for in this paragraph.
(I) Worker protections.--
(i) Nondisplacement in work
activities.--
(I) General prohibition.--
Subject to this clause, an
adult in a family receiving
assistance attributable to
funds provided under this
paragraph may fill a vacant
employment position in order to
engage in a work activity.
(II) Prohibition against
violation of contracts.--A work
activity engaged in under a
program operated with funds
provided under this paragraph
shall not violate an existing
contract for services or a
collective bargaining
agreement, and such a work
activity that would violate a
collective bargaining agreement
shall not be undertaken without
the written concurrence of the
labor organization and employer
concerned.
(III) Other prohibitions.--An
adult participant in a work
activity engaged in under a
program operated with funds
provided under this paragraph
shall not be employed or
assigned--
(aa) when any other
individual is on layoff
from the same or any
substantially
equivalent job;
(bb) if the employer
has terminated the
employment of any
regular employee or
otherwise caused an
involuntary reduction
in its workforce with
the intention of
filling the vacancy so
created with the
participant; or
(cc) if the employer
has caused an
involuntary reduction
to less than full time
in hours of any
employee in the same or
a substantially
equivalent job.
(ii) Health and safety.--Health and
safety standards established under
Federal and State law otherwise
applicable to working conditions of
employees shall be equally applicable
to working conditions of other
participants engaged in a work activity
under a program operated with funds
provided under this paragraph.
(iii) Nondiscrimination.--In addition
to the protections provided under the
provisions of law specified in section
408(c), an individual may not be
discriminated against by reason of
gender with respect to participation in
work activities engaged in under a
program operated with funds provided
under this paragraph.
(iv) Grievance procedure.--
(I) In general.--Each State
to which a grant is made under
this paragraph shall establish
and maintain a procedure for
grievances or complaints from
employees alleging violations
of clause (i) and participants
in work activities alleging
violations of clause (i), (ii),
or (iii).
(II) Hearing.--The procedure
shall include an opportunity
for a hearing.
(III) Remedies.--The
procedure shall include
remedies for violation of
clause (i), (ii), or (iii),
which may continue during the
pendency of the procedure, and
which may include--
(aa) suspension or
termination of payments
from funds provided
under this paragraph;
(bb) prohibition of
placement of a
participant with an
employer that has
violated clause (i),
(ii), or (iii);
(cc) where
applicable,
reinstatement of an
employee, payment of
lost wages and
benefits, and
reestablishment of
other relevant terms,
conditions and
privileges of
employment; and
(dd) where
appropriate, other
equitable relief.
(IV) Appeals.--
(aa) Filing.--Not
later than 30 days
after a grievant or
complainant receives an
adverse decision under
the procedure
established pursuant to
subclause (I), the
grievant or complainant
may appeal the decision
to a State agency
designated by the State
which shall be
independent of the
State or local agency
that is administering
the programs operated
with funds provided
under this paragraph
and the State agency
administering, or
supervising the
administration of, the
State program funded
under this part.
(bb) Final
determination.--Not
later than 120 days
after the State agency
designated under item
(aa) receives a
grievance or complaint
made under the
procedure established
by a State pursuant to
subclause (I), the
State agency shall make
a final determination
on the appeal.
(v) Rule of interpretation.--This
subparagraph shall not be construed to
affect the authority of a State to
provide or require workers'
compensation.
(vi) Nonpreemption of state law.--The
provisions of this subparagraph shall
not be construed to preempt any
provision of State law that affords
greater protections to employees or to
other participants engaged in work
activities under a program funded under
this part than is afforded by such
provisions of this subparagraph.
(J) Information disclosure.--If a State to
which a grant is made under section 403
establishes safeguards against the use or
disclosure of information about applicants or
recipients of assistance under the State
program funded under this part, the safeguards
shall not prevent the State agency
administering the program from furnishing to a
private industry council the names, addresses,
telephone numbers, and identifying case number
information in the State program funded under
this part, of noncustodial parents residing in
the service delivery area of the private
industry council, for the purpose of
identifying and contacting noncustodial parents
regarding participation in the program under
this paragraph.
(b) Contingency Fund.--
(1) Establishment.--There is hereby established in
the Treasury of the United States a fund which shall be
known as the ``Contingency Fund for State Welfare
Programs'' (in this section referred to as the
``Fund'').
(2) Deposits into fund.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for fiscal years
2013 and 2014 such sums as are necessary for payment to
the Fund in a total amount not to exceed $612,000,000
for each fiscal year, of which $2,000,000 shall be
reserved for carrying out the activities of the
commission established by the Protect our Kids Act of
2012 to reduce fatalities resulting from child abuse
and neglect.
(3) Grants.--
(A) Provisional payments.--If an eligible
State submits to the Secretary a request for
funds under this paragraph during an eligible
month, the Secretary shall, subject to this
paragraph, pay to the State, from amounts
appropriated pursuant to paragraph (2), an
amount equal to the amount of funds so
requested.
(B) Payment priority.--The Secretary shall
make payments under subparagraph (A) in the
order in which the Secretary receives requests
for such payments.
(C) Limitations.--
(i) Monthly payment to a state.--The
total amount paid to a single State
under subparagraph (A) during a month
shall not exceed \1/12\ of 20 percent
of the State family assistance grant.
(ii) Payments to all states.--The
total amount paid to all States under
subparagraph (A) during fiscal year
2011 and 2012, respectively, shall not
exceed the total amount appropriated
pursuant to paragraph (2) for each such
fiscal year.
(4) Eligible month.--As used in paragraph (3)(A), the
term ``eligible month'' means, with respect to a State,
a month in the 2-month period that begins with any
month for which the State is a needy State.
(5) Needy state.--For purposes of paragraph (4), a
State is a needy State for a month if--
(A) the average rate of--
(i) total unemployment in such State
(seasonally adjusted) for the period
consisting of the most recent 3 months
for which data for all States are
published equals or exceeds 6.5
percent; and
(ii) total unemployment in such State
(seasonally adjusted) for the 3-month
period equals or exceeds 110 percent of
such average rate for either (or both)
of the corresponding 3-month periods
ending in the 2 preceding calendar
years; or
(B) as determined by the Secretary of
Agriculture (in the discretion of the Secretary
of Agriculture), the monthly average number of
individuals (as of the last day of each month)
participating in the supplemental nutrition
assistance program in the State in the then
most recently concluded 3-month period for
which data are available exceeds by not less
than 10 percent the lesser of--
(i) the monthly average number of
individuals (as of the last day of each
month) in the State that would have
participated in the supplemental
nutrition assistance program in the
corresponding 3-month period in fiscal
year 1994 if the amendments made by
titles IV and VIII of the Personal
Responsibility and Work Opportunity
Reconciliation Act of 1996 had been in
effect throughout fiscal year 1994; or
(ii) the monthly average number of
individuals (as of the last day of each
month) in the State that would have
participated in the supplemental
nutrition assistance program in the
corresponding 3-month period in fiscal
year 1995 if the amendments made by
titles IV and VIII of the Personal
Responsibility and Work Opportunity
Reconciliation Act of 1996 had been in
effect throughout fiscal year 1995.
(6) Annual reconciliation.--
(A) In general.--Notwithstanding paragraph
(3), if the Secretary makes a payment to a
State under this subsection in a fiscal year,
then the State shall remit to the Secretary,
within 1 year after the end of the first
subsequent period of 3 consecutive months for
which the State is not a needy State, an amount
equal to the amount (if any) by which--
(i) the total amount paid to the
State under paragraph (3) of this
subsection in the fiscal year; exceeds
(ii) the product of--
(I) the Federal medical
assistance percentage for the
State (as defined in section
1905(b), as such section was in
effect on September 30, 1995);
(II) the State's reimbursable
expenditures for the fiscal
year; and
(III) \1/12\ times the number
of months during the fiscal
year for which the Secretary
made a payment to the State
under such paragraph (3).
(B) Definitions.--As used in subparagraph
(A):
(i) Reimbursable expenditures.--The
term ``reimbursable expenditures''
means, with respect to a State and a
fiscal year, the amount (if any) by
which--
(I) countable State
expenditures for the fiscal
year; exceeds
(II) historic State
expenditures (as defined in
section 409(a)(7)(B)(iii)),
excluding any amount expended
by the State for child care
under subsection (g) or (i) of
section 402 (as in effect
during fiscal year 1994) for
fiscal year 1994.
(ii) Countable state expenditures.--
The term ``countable expenditures''
means, with respect to a State and a
fiscal year--
(I) the qualified State
expenditures (as defined in
section 409(a)(7)(B)(i) (other
than the expenditures described
in subclause (I)(bb) of such
section)) under the State
program funded under this part
for the fiscal year; plus
(II) any amount paid to the
State under paragraph (3)
during the fiscal year that is
expended by the State under the
State program funded under this
part.
(C) Adjustment of state remittances.--
(i) In general.--The amount otherwise
required by subparagraph (A) to be
remitted by a State for a fiscal year
shall be increased by the lesser of--
(I) the total adjustment for
the fiscal year, multiplied by
the adjustment percentage for
the State for the fiscal year;
or
(II) the unadjusted net
payment to the State for the
fiscal year.
(ii) Total adjustment.--As used in
clause (i), the term ``total
adjustment'' means--
(I) in the case of fiscal
year 1998, $2,000,000;
(II) in the case of fiscal
year 1999, $9,000,000;
(III) in the case of fiscal
year 2000, $16,000,000; and
(IV) in the case of fiscal
year 2001, $13,000,000.
(iii) Adjustment percentage.--As used
in clause (i), the term ``adjustment
percentage'' means, with respect to a
State and a fiscal year--
(I) the unadjusted net
payment to the State for the
fiscal year; divided by
(II) the sum of the
unadjusted net payments to all
States for the fiscal year.
(iv) Unadjusted net payment.--As used
in this subparagraph, the term,
``unadjusted net payment'' means with
respect to a State and a fiscal year--
(I) the total amount paid to
the State under paragraph (3)
in the fiscal year; minus
(II) the amount that, in the
absence of this subparagraph,
would be required by
subparagraph (A) or by section
409(a)(10) to be remitted by
the State in respect of the
payment.
(7) State defined.--As used in this subsection, the
term ``State'' means each of the 50 States and the
District of Columbia.
(8) Annual reports.--The Secretary shall annually
report to the Congress on the status of the Fund.
* * * * * * *
B. Changes in Existing Law Proposed by the Bill, as Reported
In compliance with clause 3(e)(1)(B) of rule XIII of the
Rules of the House of Representatives, changes in existing law
proposed by the bill, as reported, are shown as follows
(existing law proposed to be omitted is enclosed in black
brackets, new matter is printed in italics, existing law in
which no change is proposed is shown in roman):
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e)(1)(B) of rule XIII of the
Rules of the House of Representatives, changes in existing law
proposed by the bill, as reported, are shown as follows (new
matter is printed in italics and existing law in which no
change is proposed is shown in roman):
SOCIAL SECURITY ACT
* * * * * * *
TITLE IV--GRANTS TO STATES FOR AID AND SERVICES TO NEEDY FAMILIES WITH
CHILDREN AND FOR CHILD-WELFARE SERVICES
PART A--BLOCK GRANTS TO STATES FOR TEMPORARY ASSISTANCE FOR NEEDY
FAMILIES
* * * * * * *
SEC. 403. GRANTS TO STATES.
(a) Grants.--
(1) Family assistance grant.--
(A) In general.--Each eligible State shall be
entitled to receive from the Secretary, for
fiscal year 2012, a grant in an amount equal to
the State family assistance grant.
(B) State family assistance grant.--The State
family assistance grant payable to a State for
a fiscal year shall be the amount that bears
the same ratio to the amount specified in
subparagraph (C) of this paragraph (as in
effect just before the enactment of the Welfare
Integrity and Data Improvement Act) as the
amount required to be paid to the State under
this paragraph (as so in effect) for fiscal
year 2002 (determined without regard to any
reduction pursuant to section 409 or 412(a)(1))
bears to the total amount required to be paid
under this paragraph for fiscal year 2002 (as
so determined).
(C) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for fiscal
year 2012 $16,566,542,000 for grants under this
paragraph.
(2) Healthy marriage promotion and responsible
fatherhood grants.--
(A) In general.--
(i) Use of funds.--Subject to
subparagraphs (B), (C), and (E), the
Secretary may use the funds made
available under subparagraph (D) for
the purpose of conducting and
supporting research and demonstration
projects by public or private entities,
and providing technical assistance to
States, Indian tribes and tribal
organizations, and such other entities
as the Secretary may specify that are
receiving a grant under another
provision of this part.
(ii) Limitations.--The Secretary may
not award funds made available under
this paragraph on a noncompetitive
basis, and may not provide any such
funds to an entity for the purpose of
carrying out healthy marriage promotion
activities or for the purpose of
carrying out activities promoting
responsible fatherhood unless the
entity has submitted to the Secretary
an application (or, in the case of an
entity seeking funding to carry out
healthy marriage promotion activities
and activities promoting responsible
fatherhood, a combined application that
contains assurances that the entity
will carry out such activities under
separate programs and shall not combine
any funds awarded to carry out either
such activities) which--
(I) describes--
(aa) how the programs
or activities proposed
in the application will
address, as
appropriate, issues of
domestic violence; and
(bb) what the
applicant will do, to
the extent relevant, to
ensure that
participation in the
programs or activities
is voluntary, and to
inform potential
participants that their
participation is
voluntary; and
(II) contains a commitment by
the entity--
(aa) to not use the
funds for any other
purpose; and
(bb) to consult with
experts in domestic
violence or relevant
community domestic
violence coalitions in
developing the programs
and activities.
(iii) Healthy marriage promotion
activities.--In clause (ii), the term
``healthy marriage promotion
activities'' means the following:
(I) Public advertising
campaigns on the value of
marriage and the skills needed
to increase marital stability
and health.
(II) Education in high
schools on the value of
marriage, relationship skills,
and budgeting.
(III) Marriage education,
marriage skills, and
relationship skills programs,
that may include parenting
skills, financial management,
conflict resolution, and job
and career advancement.
(IV) Pre-marital education
and marriage skills training
for engaged couples and for
couples or individuals
interested in marriage.
(V) Marriage enhancement and
marriage skills training
programs for married couples.
(VI) Divorce reduction
programs that teach
relationship skills.
(VII) Marriage mentoring
programs which use married
couples as role models and
mentors in at-risk communities.
(VIII) Programs to reduce the
disincentives to marriage in
means-tested aid programs, if
offered in conjunction with any
activity described in this
subparagraph.
(B) Limitation on use of funds for
demonstration projects for coordination of
provision of child welfare and tanf services to
tribal families at risk of child abuse or
neglect.--
(i) In general.--Of the amounts made
available under subparagraph (D) for a
fiscal year, the Secretary may not
award more than $2,000,000 on a
competitive basis to fund demonstration
projects designed to test the
effectiveness of tribal governments or
tribal consortia in coordinating the
provision to tribal families at risk of
child abuse or neglect of child welfare
services and services under tribal
programs funded under this part.
(ii) Limitation on use of funds.--A
grant made pursuant to clause (i) to
such a project shall not be used for
any purpose other than--
(I) to improve case
management for families
eligible for assistance from
such a tribal program;
(II) for supportive services
and assistance to tribal
children in out-of-home
placements and the tribal
families caring for such
children, including families
who adopt such children; and
(III) for prevention services
and assistance to tribal
families at risk of child abuse
and neglect.
(iii) Reports.--The Secretary may
require a recipient of funds awarded
under this subparagraph to provide the
Secretary with such information as the
Secretary deems relevant to enable the
Secretary to facilitate and oversee the
administration of any project for which
funds are provided under this
subparagraph.
(C) Limitation on use of funds for activities
promoting responsible fatherhood.--
(i) In general.--Of the amounts made
available under subparagraph (D) for a
fiscal year, the Secretary may not
award more than $75,000,000 on a
competitive basis to States,
territories, Indian tribes and tribal
organizations, and public and nonprofit
community entities, including religious
organizations, for activities promoting
responsible fatherhood.
(ii) Activities promoting responsible
fatherhood.--In this paragraph, the
term ``activities promoting responsible
fatherhood'' means the following:
(I) Activities to promote
marriage or sustain marriage
through activities such as
counseling, mentoring,
disseminating information about
the benefits of marriage and 2-
parent involvement for
children, enhancing
relationship skills, education
regarding how to control
aggressive behavior,
disseminating information on
the causes of domestic violence
and child abuse, marriage
preparation programs,
premarital counseling, marital
inventories, skills-based
marriage education, financial
planning seminars, including
improving a family's ability to
effectively manage family
business affairs by means such
as education, counseling, or
mentoring on matters related to
family finances, including
household management,
budgeting, banking, and
handling of financial
transactions and home
maintenance, and divorce
education and reduction
programs, including mediation
and counseling.
(II) Activities to promote
responsible parenting through
activities such as counseling,
mentoring, and mediation,
disseminating information about
good parenting practices,
skills-based parenting
education, encouraging child
support payments, and other
methods.
(III) Activities to foster
economic stability by helping
fathers improve their economic
status by providing activities
such as work first services,
job search, job training,
subsidized employment, job
retention, job enhancement, and
encouraging education,
including career-advancing
education, dissemination of
employment materials,
coordination with existing
employment services such as
welfare-to-work programs,
referrals to local employment
training initiatives, and other
methods.
(IV) Activities to promote
responsible fatherhood that are
conducted through a contract
with a nationally recognized,
nonprofit fatherhood promotion
organization, such as the
development, promotion, and
distribution of a media
campaign to encourage the
appropriate involvement of
parents in the life of any
child and specifically the
issue of responsible
fatherhood, and the development
of a national clearinghouse to
assist States and communities
in efforts to promote and
support marriage and
responsible fatherhood.
(D) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for fiscal
year 2012 for expenditure in accordance with
this paragraph--
(i) $75,000,000 for awarding funds
for the purpose of carrying out healthy
marriage promotion activities; and
(ii) $75,000,000 for awarding funds
for the purpose of carrying out
activities promoting responsible
fatherhood.
If the Secretary makes an award under
subparagraph (B)(i) for fiscal year 2012, the
funds for such award shall be taken in equal
portion from the amounts appropriated under
clauses (i) and (ii).
(E) Preference.--In awarding funds under this
paragraph for fiscal year 2011, the Secretary
shall give preference to entities that were
awarded funds under this paragraph for any
prior fiscal year and that have demonstrated
the ability to successfully carry out the
programs funded under this paragraph.
(3) Supplemental grant for population increases in
certain states.--
(A) In general.--Each qualifying State shall,
subject to subparagraph (F), be entitled to
receive from the Secretary--
(i) for fiscal year 1998 a grant in
an amount equal to 2.5 percent of the
total amount required to be paid to the
State under former section 403 (as in
effect during fiscal year 1994) for
fiscal year 1994; and
(ii) for each of fiscal years 1999,
2000, and 2001, a grant in an amount
equal to the sum of--
(I) the amount (if any)
required to be paid to the
State under this paragraph for
the immediately preceding
fiscal year; and
(II) 2.5 percent of the sum
of--
(aa) the total amount
required to be paid to
the State under former
section 403 (as in
effect during fiscal
year 1994) for fiscal
year 1994; and
(bb) the amount (if
any) required to be
paid to the State under
this paragraph for the
fiscal year preceding
the fiscal year for
which the grant is to
be made.
(B) Preservation of grant without increases
for states failing to remain qualifying
states.--Each State that is not a qualifying
State for a fiscal year specified in
subparagraph (A)(ii) but was a qualifying State
for a prior fiscal year shall, subject to
subparagraph (F), be entitled to receive from
the Secretary for the specified fiscal year, a
grant in an amount equal to the amount required
to be paid to the State under this paragraph
for the most recent fiscal year for which the
State was a qualifying State.
(C) Qualifying state.--
(i) In general.--For purposes of this
paragraph, a State is a qualifying
State for a fiscal year if--
(I) the level of welfare
spending per poor person by the
State for the immediately
preceding fiscal year is less
than the national average level
of State welfare spending per
poor person for such preceding
fiscal year; and
(II) the population growth
rate of the State (as
determined by the Bureau of the
Census) for the most recent
fiscal year for which
information is available
exceeds the average population
growth rate for all States (as
so determined) for such most
recent fiscal year.
(ii) State must qualify in fiscal
year 1998.--Notwithstanding clause (i),
a State shall not be a qualifying State
for any fiscal year after 1998 by
reason of clause (i) if the State is
not a qualifying State for fiscal year
1998 by reason of clause (i).
(iii) Certain states deemed
qualifying states.--For purposes of
this paragraph, a State is deemed to be
a qualifying State for fiscal years
1998, 1999, 2000, and 2001 if--
(I) the level of welfare
spending per poor person by the
State for fiscal year 1994 is
less than 35 percent of the
national average level of State
welfare spending per poor
person for fiscal year 1994; or
(II) the population of the
State increased by more than 10
percent from April 1, 1990 to
July 1, 1994, according to the
population estimates in
publication CB94-204 of the
Bureau of the Census.
(D) Definitions.--As used in this paragraph:
(i) Level of welfare spending per
poor person.--The term ``level of State
welfare spending per poor person''
means, with respect to a State and a
fiscal year--
(I) the sum of--
(aa) the total amount
required to be paid to
the State under former
section 403 (as in
effect during fiscal
year 1994) for fiscal
year 1994; and
(bb) the amount (if
any) paid to the State
under this paragraph
for the immediately
preceding fiscal year;
divided by
(II) the number of
individuals, according to the
1990 decennial census, who were
residents of the State and
whose income was below the
poverty line.
(ii) National average level of state
welfare spending per poor person.--The
term ``national average level of State
welfare spending per poor person''
means, with respect to a fiscal year,
an amount equal to--
(I) the total amount required
to be paid to the States under
former section 403 (as in
effect during fiscal year 1994)
for fiscal year 1994; divided
by
(II) the number of
individuals, according to the
1990 decennial census, who were
residents of any State and
whose income was below the
poverty line.
(iii) State.--The term ``State''
means each of the 50 States of the
United States and the District of
Columbia.
(E) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for fiscal
years 1998, 1999, 2000, and 2001 such sums as
are necessary for grants under this paragraph,
in a total amount not to exceed $800,000,000.
(F) Grants reduced pro rata if insufficient
appropriations.--If the amount appropriated
pursuant to this paragraph for a fiscal year
(or portion of a fiscal year) is less than the
total amount of payments otherwise required to
be made under this paragraph for the fiscal
year (or portion of the fiscal year), then the
amount otherwise payable to any State for the
fiscal year (or portion of the fiscal year)
under this paragraph shall be reduced by a
percentage equal to the amount so appropriated
divided by such total amount.
(G) Budget scoring.--Notwithstanding section
257(b)(2) of the Balanced Budget and Emergency
Deficit Control Act of 1985, the baseline shall
assume that no grant shall be made under this
paragraph after fiscal year 2001.
(H) Reauthorization.--Notwithstanding any
other provision of this paragraph--
(i) any State that was a qualifying
State under this paragraph for fiscal
year 2001 or any prior fiscal year
shall be entitled to receive from the
Secretary for each of fiscal years 2002
and 2003 a grant in an amount equal to
the amount required to be paid to the
State under this paragraph for the most
recent fiscal year in which the State
was a qualifying State;
(ii) subparagraph (G) shall be
applied as if ``fiscal year 2011'' were
substituted for ``fiscal year 2001'';
(iii) out of any money in the
Treasury of the United States not
otherwise appropriated, there are
appropriated for each of fiscal years
2002 and 2003 such sums as are
necessary for grants under this
subparagraph.
(4) Bonus to reward high performance states.--
(A) In general.--The Secretary shall make a
grant pursuant to this paragraph to each State
for each bonus year for which the State is a
high performing State.
(B) Amount of grant.--
(i) In general.--Subject to clause
(ii) of this subparagraph, the
Secretary shall determine the amount of
the grant payable under this paragraph
to a high performing State for a bonus
year, which shall be based on the score
assigned to the State under
subparagraph (D)(i) for the fiscal year
that immediately precedes the bonus
year.
(ii) Limitation.--The amount payable
to a State under this paragraph for a
bonus year shall not exceed 5 percent
of the State family assistance grant.
(C) Formula for measuring state
performance.--Not later than 1 year after the
date of the enactment of the Personal
Responsibility and Work Opportunity
Reconciliation Act of 1996, the Secretary, in
consultation with the National Governors'
Association and the American Public Welfare
Association, shall develop a formula for
measuring State performance in operating the
State program funded under this part so as to
achieve the goals set forth in section 401(a).
(D) Scoring of state performance; setting of
performance thresholds.--For each bonus year,
the Secretary shall--
(i) use the formula developed under
subparagraph (C) to assign a score to
each eligible State for the fiscal year
that immediately precedes the bonus
year; and
(ii) prescribe a performance
threshold in such a manner so as to
ensure that--
(I) the average annual total
amount of grants to be made
under this paragraph for each
bonus year equals $200,000,000;
and
(II) the total amount of
grants to be made under this
paragraph for all bonus years
equals $1,000,000,000.
(E) Definitions.--As used in this paragraph:
(i) Bonus year.--The term ``bonus
year'' means fiscal years 1999, 2000,
2001, 2002, and 2003.
(ii) High performing state.--The term
``high performing State'' means, with
respect to a bonus year, an eligible
State whose score assigned pursuant to
subparagraph (D)(i) for the fiscal year
immediately preceding the bonus year
equals or exceeds the performance
threshold prescribed under subparagraph
(D)(ii) for such preceding fiscal year.
(F) Appropriation.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for fiscal
years 1999 through 2003 $1,000,000,000 for
grants under this paragraph.
(5) Welfare-to-work grants.--
(A) Formula grants.--
(i) Entitlement.--A State shall be
entitled to receive from the Secretary
of Labor a grant for each fiscal year
specified in subparagraph (H) of this
paragraph for which the State is a
welfare-to-work State, in an amount
that does not exceed the lesser of--
(I) 2 times the total of the
expenditures by the State
(excluding qualified State
expenditures (as defined in
section 409(a)(7)(B)(i)) and
any expenditure described in
subclause (I), (II), or (IV) of
section 409(a)(7)(B)(iv))
during the period permitted
under subparagraph (C)(vii) of
this paragraph for the
expenditure of funds under the
grant for activities described
in subparagraph (C)(i) of this
paragraph; or
(II) the allotment of the
State under clause (iii) of
this subparagraph for the
fiscal year.
(ii) Welfare-to-work state.--A State
shall be considered a welfare-to-work
State for a fiscal year for purposes of
this paragraph if the Secretary of
Labor determines that the State meets
the following requirements:
(I) The State has submitted
to the Secretary of Labor and
the Secretary of Health and
Human Services (in the form of
an addendum to the State plan
submitted under section 402) a
plan which--
(aa) describes how,
consistent with this
subparagraph, the State
will use any funds
provided under this
subparagraph during the
fiscal year;
(bb) specifies the
formula to be used
pursuant to clause (vi)
to distribute funds in
the State, and
describes the process
by which the formula
was developed;
(cc) contains
evidence that the plan
was developed in
consultation and
coordination with
appropriate entitites
in sub-State areas;
(dd) contains
assurances by the
Governor of the State
that the private
industry council (and
any alternate agency
designated by the
Governor under item
(ee)) for a service
delivery area in the
State will coordinate
the expenditure of any
funds provided under
this subparagraph for
the benefit of the
service delivery area
with the expenditure of
the funds provided to
the State under section
403(a)(1);
(ee) if the Governor
of the State desires to
have an agency other
than a private industry
council administer the
funds provided under
this subparagraph for
the benefit of 1 or
more service delivery
areas in the State,
contains an application
to the Secretary of
Labor for a waiver of
clause (vii)(I) with
respect to the area or
areas in order to
permit an alternate
agency designated by
the Governor to so
administer the funds;
and
(ff) describes how
the State will ensure
that a private industry
council to which
information is
disclosed pursuant to
section 403(a)(5)(K) or
454A(f)(5) has
procedures for
safeguarding the
information and for
ensuring that the
information is used
solely for the purpose
described in that
section.
(II) The State has provided
to the Secretary of Labor an
estimate of the amount that the
State intends to expend during
the period permitted under
subparagraph (C)(vii) of this
paragraph for the expenditure
of funds under the grant
(excluding expenditures
described in section
409(a)(7)(B)(iv) (other than
subclause (III) thereof))
pursuant to this paragraph.
(III) The State has agreed to
negotiate in good faith with
the Secretary of Health and
Human Services with respect to
the substance and funding of
any evaluation under section
413(j), and to cooperate with
the conduct of any such
evaluation.
(IV) The State is an eligible
State for the fiscal year.
(V) The State certifies that
qualified State expenditures
(within the meaning of section
409(a)(7)) for the fiscal year
will be not less than the
applicable percentage of
historic State expenditures
(within the meaning of section
409(a)(7)) with respect to the
fiscal year.
(iii) Allotments to welfare-to-work
states.--
(I) In general.--Subject to
this clause, the allotment of a
welfare-to-work State for a
fiscal year shall be the
available amount for the fiscal
year, multiplied by the State
percentage for the fiscal year.
(II) Minimum allotment.--The
allotment of a welfare-to-work
State (other than Guam, the
Virgin Islands, or American
Samoa) for a fiscal year shall
not be less than 0.25 percent
of the available amount for the
fiscal year.
(III) Pro rata reduction.--
Subject to subclause (II), the
Secretary of Labor shall make
pro rata reductions in the
allotments to States under this
clause for a fiscal year as
necessary to ensure that the
total of the allotments does
not exceed the available amount
for the fiscal year.
(iv) Available amount.--As used in
this subparagraph, the term ``available
amount'' means, for a fiscal year, the
sum of--
(I) 75 percent of the sum
of--
(aa) the amount
specified in
subparagraph (H) for
the fiscal year, minus
the total of the
amounts reserved
pursuant to
subparagraphs (E), (F),
and (G) for the fiscal
year; and
(bb) any amount
reserved pursuant to
subparagraph (E) for
the immediately
preceding fiscal year
that has not been
obligated; and
(II) any available amount for
the immediately preceding
fiscal year that has not been
obligated by a State, other
than funds reserved by the
State for distribution under
clause (vi)(III) and funds
distributed pursuant to clause
(vi)(I) in any State in which
the service delivery area is
the State.
(v) State percentage.--As used in
clause (iii), the term ``State
percentage'' means, with respect to a
fiscal year, \1/2\ of the sum of--
(I) the percentage
represented by the number of
individuals in the State whose
income is less than the poverty
line divided by the number of
such individuals in the United
States; and
(II) the percentage
represented by the number of
adults who are recipients of
assistance under the State
program funded under this part
divided by the number of adults
in the United States who are
recipients of assistance under
any State program funded under
this part.
(vi) Procedure for distribution of
funds within states.--
(I) Allocation formula.--A
State to which a grant is made
under this subparagraph shall
devise a formula for allocating
not less than 85 percent of the
amount of the grant among the
service delivery areas in the
State, which--
(aa) determines the
amount to be allocated
for the benefit of a
service delivery area
in proportion to the
number (if any) by
which the population of
the area with an income
that is less than the
poverty line exceeds
7.5 percent of the
total population of the
area, relative to such
number for all such
areas in the State with
such an excess, and
accords a weight of not
less than 50 percent to
this factor;
(bb) may determine
the amount to be
allocated for the
benefit of such an area
in proportion to the
number of adults
residing in the area
who have been
recipients of
assistance under the
State program funded
under this part
(whether in effect
before or after the
amendments made by
section 103(a) of the
Personal Responsibility
and Work Opportunity
Reconciliation Act of
1996 first applied to
the State) for at least
30 months (whether or
not consecutive)
relative to the number
of such adults residing
in the State; and
(cc) may determine
the amount to be
allocated for the
benefit of such an area
in proportion to the
number of unemployed
individuals residing in
the area relative to
the number of such
individuals residing in
the State.
(II) Distribution of funds.--
(aa) In general.--If
the amount allocated by
the formula to a
service delivery area
is at least $100,000,
the State shall
distribute the amount
to the entity
administering the grant
in the area.
(bb) Special rule.--
If the amount allocated
by the formula to a
service delivery area
is less than $100,000,
the sum shall be
available for
distribution in the
State under subclause
(III) during the fiscal
year.
(III) Projects to help long-
term recipients of assistance
enter unsubsidized jobs.--The
Governor of a State to which a
grant is made under this
subparagraph may distribute not
more than 15 percent of the
grant funds (plus any amount
required to be distributed
under this subclause by reason
of subclause (II)(bb)) to
projects that appear likely to
help long-term recipients of
assistance under the State
program funded under this part
(whether in effect before or
after the amendments made by
section 103(a) of the Personal
Responsibility and Work
Opportunity Reconciliation Act
of 1996 first applied to the
State) enter unsubsidized
employment.
(vii) Administration.--
(I) Private industry
councils.--The private industry
council for a service delivery
area in a State shall have sole
authority, in coordination with
the chief elected official (as
defined in section 3 of the
Workforce Innovation and
Opportunity Act) of the area,
to expend the amounts
distributed under clause
(vi)(II)(aa) for the benefit of
the service delivery area, in
accordance with the assurances
described in clause (ii)(I)(dd)
provided by the Governor of the
State.
(II) Enforcement of
coordination of expenditures
with other expenditures under
this part.--Notwithstanding
subclause (I) of this clause,
on a determination by the
Governor of a State that a
private industry council (or an
alternate agency described in
clause (ii)(I)(dd)) has used
funds provided under this
subparagraph in a manner
inconsistent with the
assurances described in clause
(ii)(I)(dd)--
(aa) the private
industry council (or
such alternate agency)
shall remit the funds
to the Governor; and
(bb) the Governor
shall apply to the
Secretary of Labor for
a waiver of subclause
(I) of this clause with
respect to the service
delivery area or areas
involved in order to
permit an alternate
agency designated by
the Governor to
administer the funds in
accordance with the
assurances.
(III) Authority to permit use
of alternate administering
agency.--The Secretary of Labor
shall approve an application
submitted under clause
(ii)(I)(ee) or subclause
(II)(bb) of this clause to
waive subclause (I) of this
clause with respect to 1 or
more service delivery areas if
the Secretary determines that
the alternate agency designated
in the application would
improve the effectiveness or
efficiency of the
administration of amounts
distributed under clause
(vi)(II)(aa) for the benefit of
the area or areas.
(viii) Data to be used in determining
the number of adult tanf recipients.--
For purposes of this subparagraph, the
number of adult recipients of
assistance under a State program funded
under this part for a fiscal year shall
be determined using data for the most
recent 12-month period for which such
data is available before the beginning
of the fiscal year.
(ix) Reversion of unallotted formula
funds.--If at the end of any fiscal
year any funds available under this
subparagraph have not been allotted due
to a determination by the Secretary
that any State has not met the
requirements of clause (ii), such funds
shall be transferred to the General
Fund of the Treasury of the United
States.
(B) Competitive grants.--
(i) In general.--The Secretary of
Labor shall award grants in accordance
with this subparagraph, in fiscal years
1998 and 1999, for projects proposed by
eligible applicants, based on the
following:
(I) The effectiveness of the
proposal in--
(aa) expanding the
base of knowledge about
programs aimed at
moving recipients of
assistance under State
programs funded under
this part who are least
job ready into
unsubsidized
employment.
(bb) moving
recipients of
assistance under State
programs funded under
this part who are least
job ready into
unsubsidized
employment; and
(cc) moving
recipients of
assistance under State
programs funded under
this part who are least
job ready into
unsubsidized
employment, even in
labor markets that have
a shortage of low-skill
jobs.
(II) At the discretion of the
Secretary of Labor, any of the
following:
(aa) The history of
success of the
applicant in moving
individuals with
multiple barriers into
work.
(bb) Evidence of the
applicant's ability to
leverage private,
State, and local
resources.
(cc) Use by the
applicant of State and
local resources beyond
those required by
subparagraph (A).
(dd) Plans of the
applicant to coordinate
with other
organizations at the
local and State level.
(ee) Use by the
applicant of current or
former recipients of
assistance under a
State program funded
under this part as
mentors, case managers,
or service providers.
(ii) Eligible applicants.--As used in
clause (i), the term ``eligible
applicant'' means a private industry
council for a service delivery area in
a State, a political subdivision of a
State, or a private entity applying in
conjunction with the private industry
council for such a service delivery
area or with such a political
subdivision, that submits a proposal
developed in consultation with the
Governor of the State.
(iii) Determination of grant
amount.--In determining the amount of a
grant to be made under this
subparagraph for a project proposed by
an applicant, the Secretary of Labor
shall provide the applicant with an
amount sufficient to ensure that the
project has a reasonable opportunity to
be successful, taking into account the
number of long-term recipients of
assistance under a State program funded
under this part, the level of
unemployment, the job opportunities and
job growth, the poverty rate, and such
other factors as the Secretary of Labor
deems appropriate, in the area to be
served by the project.
(iv) Consideration of needs of rural
areas and cities with large
concentrations of poverty.--In making
grants under this subparagraph, the
Secretary of Labor shall consider the
needs of rural areas and cities with
large concentrations of residents with
an income that is less than the poverty
line.
(v) Funding.--For grants under this
subparagraph for each fiscal year
specified in subparagraph (H), there
shall be available to the Secretary of
Labor an amount equal to the sum of--
(I) 25 percent of the sum
of--
(aa) the amount
specified in
subparagraph (H) for
the fiscal year, minus
the total of the
amounts reserved
pursuant to
subparagraphs (E), (F),
and (G) for the fiscal
year; and
(bb) any amount
reserved pursuant to
subparagraph (E) for
the immediately
preceding fiscal year
that has not been
obligated; and
(II) any amount available for
grants under this subparagraph
for the immediately preceding
fiscal year that has not been
obligated.
(C) Limitations on use of funds.--
(i) Allowable activities.--An entity
to which funds are provided under this
paragraph shall use the funds to move
individuals into and keep individuals
in lasting unsubsidized employment by
means of any of the following:
(I) The conduct and
administration of community
service or work experience
programs.
(II) Job creation through
public or private sector
employment wage subsidies.
(III) On-the-job training.
(IV) Contracts with public or
private providers of readiness,
placement, and post-employment
services, or if the entity is
not a private industry council
or workforce investment board,
the direct provision of such
services.
(V) Job vouchers for
placement, readiness, and
postemployment services.
(VI) Job retention or support
services if such services are
not otherwise available.
(VII) Not more than 6 months
of vocational educational or
job training.
Contracts or vouchers for job placement
services supported by such funds must
require that at least \1/2\ of the
payment occur after an eligible
individual placed into the workforce
has been in the workforce for 6 months.
(ii) General eligibility.--An entity
that operates a project with funds
provided under this paragraph may
expend funds provided to the project
for the benefit of recipients of
assistance under the program funded
under this part of the State in which
the entity is located who--
(I) has received assistance
under the State program funded
under this part (whether in
effect before or after the
amendments made by section 103
of the Personal Responsibility
and Work Opportunity
Reconciliation Act of 1996
first apply to the State) for
at least 30 months (whether or
not consecutive); or
(II) within 12 months, will
become ineligible for
assistance under the State
program funded under this part
by reason of a durational limit
on such assistance, without
regard to any exemption
provided pursuant to section
408(a)(7)(C) that may apply to
the individual.
(iii) Noncustodial parents.--An
entity that operates a project with
funds provided under this paragraph may
use the funds to provide services in a
form described in clause (i) to
noncustodial parents with respect to
whom the requirements of the following
subclauses are met:
(I) The noncustodial parent
is unemployed, underemployed,
or having difficulty in paying
child support obligations.
(II) At least 1 of the
following applies to a minor
child of the noncustodial
parent (with preference in the
determination of the
noncustodial parents to be
provided services under this
paragraph to be provided by the
entity to those noncustodial
parents with minor children who
meet, or who have custodial
parents who meet, the
requirements of item (aa)):
(aa) The minor child
or the custodial parent
of the minor child
meets the requirements
of subclause (I) or
(II) of clause (ii).
(bb) The minor child
is eligible for, or is
receiving, benefits
under the program
funded under this part.
(cc) The minor child
received benefits under
the program funded
under this part in the
12-month period
preceding the date of
the determination but
no longer receives such
benefits.
(dd) The minor child
is eligible for, or is
receiving, assistance
under the Food and
Nutrition Act of 2008,
benefits under the
supplemental security
income program under
title XVI of this Act,
medical assistance
under title XIX of this
Act, or child health
assistance under title
XXI of this Act.
(III) In the case of a
noncustodial parent who becomes
enrolled in the project on or
after the date of the enactment
of this clause, the
noncustodial parent is in
compliance with the terms of an
oral or written personal
responsibility contract entered
into among the noncustodial
parent, the entity, and (unless
the entity demonstrates to the
Secretary that the entity is
not capable of coordinating
with such agency) the agency
responsible for administering
the State plan under part D,
which was developed taking into
account the employment and
child support status of the
noncustodial parent, which was
entered into not later than 30
(or, at the option of the
entity, not later than 90) days
after the noncustodial parent
was enrolled in the project,
and which, at a minimum,
includes the following:
(aa) A commitment by
the noncustodial parent
to cooperate, at the
earliest opportunity,
in the establishment of
the paternity of the
minor child, through
voluntary
acknowledgement or
other procedures, and
in the establishment of
a child support order.
(bb) A commitment by
the noncustodial parent
to cooperate in the
payment of child
support for the minor
child, which may
include a modification
of an existing support
order to take into
account the ability of
the noncustodial parent
to pay such support and
the participation of
such parent in the
project.
(cc) A commitment by
the noncustodial parent
to participate in
employment or related
activities that will
enable the noncustodial
parent to make regular
child support payments,
and if the noncustodial
parent has not attained
20 years of age, such
related activities may
include completion of
high school, a general
equivalency degree, or
other education
directly related to
employment.
(dd) A description of
the services to be
provided under this
paragraph, and a
commitment by the
noncustodial parent to
participate in such
services, that are
designed to assist the
noncustodial parent
obtain and retain
employment, increase
earnings, and enhance
the financial and
emotional contributions
to the well-being of
the minor child.
In order to protect custodial
parents and children who may be
at risk of domestic violence,
the preceding provisions of
this subclause shall not be
construed to affect any other
provision of law requiring a
custodial parent to cooperate
in establishing the paternity
of a child or establishing or
enforcing a support order with
respect to a child, or
entitling a custodial parent to
refuse, for good cause, to
provide such cooperation as a
condition of assistance or
benefit under any program,
shall not be construed to
require such cooperation by the
custodial parent as a condition
of participation of either
parent in the program
authorized under this
paragraph, and shall not be
construed to require a
custodial parent to cooperate
with or participate in any
activity under this clause. The
entity operating a project
under this clause with funds
provided under this paragraph
shall consult with domestic
violence prevention and
intervention organizations in
the development of the project.
(iv) Targeting of hard to employ
individuals with characteristics
associated with long-term welfare
dependence.--An entity that operates a
project with funds provided under this
paragraph may expend not more than 30
percent of all funds provided to the
project for programs that provide
assistance in a form described in
clause (i)--
(I) to recipients of
assistance under the program
funded under this part of the
State in which the entity is
located who have
characteristics associated with
long-term welfare dependence
(such as school dropout, teen
pregnancy, or poor work
history), including, at the
option of the State, by
providing assistance in such
form as a condition of
receiving assistance under the
State program funded under this
part;
(II) to children--
(aa) who have
attained 18 years of
age but not 25 years of
age; and
(bb) who, before
attaining 18 years of
age, were recipients of
foster care maintenance
payments (as defined in
section 475(4)) under
part E or were in
foster care under the
responsibility of a
State;
(III) to recipients of
assistance under the State
program funded under this part,
determined to have significant
barriers to self-sufficiency,
pursuant to criteria
established by the local
private industry council; or
(IV) to custodial parents
with incomes below 100 percent
of the poverty line (as defined
in section 673(2) of the
Omnibus Budget Reconciliation
Act of 1981, including any
revision required by such
section, applicable to a family
of the size involved).
To the extent that the entity does not
expend such funds in accordance with
the preceding sentence, the entity
shall expend such funds in accordance
with clauses (ii) and (iii) and, as
appropriate, clause (v).
(v) Authority to provide work-related
services to individuals who have
reached the 5 year limit.--An entity
that operates a project with funds
provided under this paragraph may use
the funds to provide assistance in a
form described in clause (i) of this
subparagraph to, or for the benefit of,
individuals who (but for section
408(a)(7)) would be eligible for
assistance under the program funded
under this part of the State in which
the entity is located.
(vi) Relationship to other provisions
of this part.--
(I) Rules governing use of
funds.--The rules of section
404, other than subsections
(b), (f), and (h) of section
404, shall not apply to a grant
made under this paragraph.
(II) Rules governing payments
to states.--The Secretary of
Labor shall carry out the
functions otherwise assigned by
section 405 to the Secretary of
Health and Human Services with
respect to the grants payable
under this paragraph.
(III) Administration.--
Section 416 shall not apply to
the programs under this
paragraph.
(vii) Prohibition against use of
grant funds for any other fund matching
requirement.--An entity to which funds
are provided under this paragraph shall
not use any part of the funds, nor any
part of State expenditures made to
match the funds, to fulfill any
obligation of any State, political
subdivision, or private industry
council to contribute funds under
section 403(b) or 418 or any other
provision of this Act or other Federal
law.
(viii) Deadline for expenditure.--An
entity to which funds are provided
under this paragraph shall remit to the
Secretary of Labor any part of the
funds that are not expended within 5
years after the date the funds are so
provided.
(ix) Regulations.--Within 90 days
after the date of the enactment of this
paragraph, the Secretary of Labor,
after consultation with the Secretary
of Health and Human Services and the
Secretary of Housing and Urban
Development, shall prescribe such
regulations as may be necessary to
implement this paragraph.
(x) Reporting requirements.--The
Secretary of Labor, in consultation
with the Secretary of Health and Human
Services, States, and organizations
that represent State or local
governments, shall establish
requirements for the collection and
maintenance of financial and
participant information and the
reporting of such information by
entities carrying out activities under
this paragraph.
(D) Definitions.--
(i) Individuals with income less than
the poverty line.--For purposes of this
paragraph, the number of individuals
with an income that is less than the
poverty line shall be determined for a
fiscal year--
(I) based on the methodology
used by the Bureau of the
Census to produce and publish
intercensal poverty data for
States and counties (or, in the
case of Puerto Rico, the Virgin
Islands, Guam, and American
Samoa, other poverty data
selected by the Secretary of
Labor); and
(II) using data for the most
recent year for which such data
is available before the
beginning of the fiscal year.
(ii) Private industry council.--As
used in this paragraph, the term
``private industry council'' means,
with respect to a service delivery
area, the private industry council or
local workforce development board
established for the local workforce
development area pursuant to title I of
the Workforce Innovation and
Opportunity Act, as appropriate.
(iii) Service delivery area.--As used
in this paragraph, the term ``service
delivery area'' shall have the meaning
given such term for purposes of the Job
Training Partnership Act or.
(E) Funding for indian tribes.--1 percent of
the amount specified in subparagraph (H) for
fiscal year 1998 and $15,000,000 of the amount
so specified for fiscal year 1999 shall be
reserved for grants to Indian tribes under
section 412(a)(3).
(F) Funding for evaluations of welfare-to-
work programs.--0.6 percent of the amount
specified in subparagraph (H) for fiscal year
1998 and $9,000,000 of the amount so specified
for fiscal year 1999 shall be reserved for use
by the Secretary to carry out section 413(j).
(G) Funding for evaluation of abstinence
education programs.--
(i) In general.--0.2 percent of the
amount specified in subparagraph (H)
for fiscal year 1998 and $3,000,000 of
the amount so specified for fiscal year
1999 shall be reserved for use by the
Secretary to evaluate programs under
section 510, directly or through
grants, contracts, or interagency
agreements.
(ii) Authority to use funds for
evaluations of welfare-to-work
programs.--Any such amount not required
for such evaluations shall be available
for use by the Secretary to carry out
section 413(j).
(iii) Deadline for outlays.--Outlays
from funds used pursuant to clause (i)
for evaluation of programs under
section 510 shall not be made after
fiscal year 2005.
(iv) Interim report.--Not later than
January 1, 2002, the Secretary shall
submit to the Congress an interim
report on the evaluations referred to
in clause (i).
(H) Appropriations.--
(i) In general.--Out of any money in
the Treasury of the United States not
otherwise appropriated, there are
appropriated for grants under this
paragraph--
(I) $1,500,000,000 for fiscal
year 1998; and
(II) $1,400,000,000 for
fiscal year 1999.
(ii) Availability.--The amounts made
available pursuant to clause (i) shall
remain available for such period as is
necessary to make the grants provided
for in this paragraph.
(I) Worker protections.--
(i) Nondisplacement in work
activities.--
(I) General prohibition.--
Subject to this clause, an
adult in a family receiving
assistance attributable to
funds provided under this
paragraph may fill a vacant
employment position in order to
engage in a work activity.
(II) Prohibition against
violation of contracts.--A work
activity engaged in under a
program operated with funds
provided under this paragraph
shall not violate an existing
contract for services or a
collective bargaining
agreement, and such a work
activity that would violate a
collective bargaining agreement
shall not be undertaken without
the written concurrence of the
labor organization and employer
concerned.
(III) Other prohibitions.--An
adult participant in a work
activity engaged in under a
program operated with funds
provided under this paragraph
shall not be employed or
assigned--
(aa) when any other
individual is on layoff
from the same or any
substantially
equivalent job;
(bb) if the employer
has terminated the
employment of any
regular employee or
otherwise caused an
involuntary reduction
in its workforce with
the intention of
filling the vacancy so
created with the
participant; or
(cc) if the employer
has caused an
involuntary reduction
to less than full time
in hours of any
employee in the same or
a substantially
equivalent job.
(ii) Health and safety.--Health and
safety standards established under
Federal and State law otherwise
applicable to working conditions of
employees shall be equally applicable
to working conditions of other
participants engaged in a work activity
under a program operated with funds
provided under this paragraph.
(iii) Nondiscrimination.--In addition
to the protections provided under the
provisions of law specified in section
408(c), an individual may not be
discriminated against by reason of
gender with respect to participation in
work activities engaged in under a
program operated with funds provided
under this paragraph.
(iv) Grievance procedure.--
(I) In general.--Each State
to which a grant is made under
this paragraph shall establish
and maintain a procedure for
grievances or complaints from
employees alleging violations
of clause (i) and participants
in work activities alleging
violations of clause (i), (ii),
or (iii).
(II) Hearing.--The procedure
shall include an opportunity
for a hearing.
(III) Remedies.--The
procedure shall include
remedies for violation of
clause (i), (ii), or (iii),
which may continue during the
pendency of the procedure, and
which may include--
(aa) suspension or
termination of payments
from funds provided
under this paragraph;
(bb) prohibition of
placement of a
participant with an
employer that has
violated clause (i),
(ii), or (iii);
(cc) where
applicable,
reinstatement of an
employee, payment of
lost wages and
benefits, and
reestablishment of
other relevant terms,
conditions and
privileges of
employment; and
(dd) where
appropriate, other
equitable relief.
(IV) Appeals.--
(aa) Filing.--Not
later than 30 days
after a grievant or
complainant receives an
adverse decision under
the procedure
established pursuant to
subclause (I), the
grievant or complainant
may appeal the decision
to a State agency
designated by the State
which shall be
independent of the
State or local agency
that is administering
the programs operated
with funds provided
under this paragraph
and the State agency
administering, or
supervising the
administration of, the
State program funded
under this part.
(bb) Final
determination.--Not
later than 120 days
after the State agency
designated under item
(aa) receives a
grievance or complaint
made under the
procedure established
by a State pursuant to
subclause (I), the
State agency shall make
a final determination
on the appeal.
(v) Rule of interpretation.--This
subparagraph shall not be construed to
affect the authority of a State to
provide or require workers'
compensation.
(vi) Nonpreemption of state law.--The
provisions of this subparagraph shall
not be construed to preempt any
provision of State law that affords
greater protections to employees or to
other participants engaged in work
activities under a program funded under
this part than is afforded by such
provisions of this subparagraph.
(J) Information disclosure.--If a State to
which a grant is made under section 403
establishes safeguards against the use or
disclosure of information about applicants or
recipients of assistance under the State
program funded under this part, the safeguards
shall not prevent the State agency
administering the program from furnishing to a
private industry council the names, addresses,
telephone numbers, and identifying case number
information in the State program funded under
this part, of noncustodial parents residing in
the service delivery area of the private
industry council, for the purpose of
identifying and contacting noncustodial parents
regarding participation in the program under
this paragraph.
(b) Contingency Fund.--
(1) Establishment.--There is hereby established in
the Treasury of the United States a fund which shall be
known as the ``Contingency Fund for State Welfare
Programs'' (in this section referred to as the
``Fund'').
(2) Deposits into fund.--Out of any money in the
Treasury of the United States not otherwise
appropriated, there are appropriated for fiscal years
2013 and 2014 such sums as are necessary for payment to
the Fund in a total amount not to exceed $612,000,000
for each fiscal year, of which $2,000,000 shall be
reserved for carrying out the activities of the
commission established by the Protect our Kids Act of
2012 to reduce fatalities resulting from child abuse
and neglect.
(3) Grants.--
(A) Provisional payments.--If an eligible
State submits to the Secretary a request for
funds under this paragraph during an eligible
month, the Secretary shall, subject to this
paragraph, pay to the State, from amounts
appropriated pursuant to paragraph (2), an
amount equal to the amount of funds so
requested.
(B) Payment priority.--The Secretary shall
make payments under subparagraph (A) in the
order in which the Secretary receives requests
for such payments.
(C) Limitations.--
(i) Monthly payment to a state.--The
total amount paid to a single State
under subparagraph (A) during a month
shall not exceed \1/12\ of 20 percent
of the State family assistance grant.
(ii) Payments to all states.--The
total amount paid to all States under
subparagraph (A) during fiscal year
2011 and 2012, respectively, shall not
exceed the total amount appropriated
pursuant to paragraph (2) for each such
fiscal year.
(4) Eligible month.--As used in paragraph (3)(A), the
term ``eligible month'' means, with respect to a State,
a month in the 2-month period that begins with any
month for which the State is a needy State.
(5) Needy state.--For purposes of paragraph (4), a
State is a needy State for a month if--
(A) the average rate of--
(i) total unemployment in such State
(seasonally adjusted) for the period
consisting of the most recent 3 months
for which data for all States are
published equals or exceeds 6.5
percent; and
(ii) total unemployment in such State
(seasonally adjusted) for the 3-month
period equals or exceeds 110 percent of
such average rate for either (or both)
of the corresponding 3-month periods
ending in the 2 preceding calendar
years; or
(B) as determined by the Secretary of
Agriculture (in the discretion of the Secretary
of Agriculture), the monthly average number of
individuals (as of the last day of each month)
participating in the supplemental nutrition
assistance program in the State in the then
most recently concluded 3-month period for
which data are available exceeds by not less
than 10 percent the lesser of--
(i) the monthly average number of
individuals (as of the last day of each
month) in the State that would have
participated in the supplemental
nutrition assistance program in the
corresponding 3-month period in fiscal
year 1994 if the amendments made by
titles IV and VIII of the Personal
Responsibility and Work Opportunity
Reconciliation Act of 1996 had been in
effect throughout fiscal year 1994; or
(ii) the monthly average number of
individuals (as of the last day of each
month) in the State that would have
participated in the supplemental
nutrition assistance program in the
corresponding 3-month period in fiscal
year 1995 if the amendments made by
titles IV and VIII of the Personal
Responsibility and Work Opportunity
Reconciliation Act of 1996 had been in
effect throughout fiscal year 1995.
(6) Annual reconciliation.--
(A) In general.--Notwithstanding paragraph
(3), if the Secretary makes a payment to a
State under this subsection in a fiscal year,
then the State shall remit to the Secretary,
within 1 year after the end of the first
subsequent period of 3 consecutive months for
which the State is not a needy State, an amount
equal to the amount (if any) by which--
(i) the total amount paid to the
State under paragraph (3) of this
subsection in the fiscal year; exceeds
(ii) the product of--
(I) the Federal medical
assistance percentage for the
State (as defined in section
1905(b), as such section was in
effect on September 30, 1995);
(II) the State's reimbursable
expenditures for the fiscal
year; and
(III) \1/12\ times the number
of months during the fiscal
year for which the Secretary
made a payment to the State
under such paragraph (3).
(B) Definitions.--As used in subparagraph
(A):
(i) Reimbursable expenditures.--The
term ``reimbursable expenditures''
means, with respect to a State and a
fiscal year, the amount (if any) by
which--
(I) countable State
expenditures for the fiscal
year; exceeds
(II) historic State
expenditures (as defined in
section 409(a)(7)(B)(iii)),
excluding any amount expended
by the State for child care
under subsection (g) or (i) of
section 402 (as in effect
during fiscal year 1994) for
fiscal year 1994.
(ii) Countable state expenditures.--
The term ``countable expenditures''
means, with respect to a State and a
fiscal year--
(I) the qualified State
expenditures (as defined in
section 409(a)(7)(B)(i) (other
than the expenditures described
in subclause (I)(bb) of such
section)) under the State
program funded under this part
for the fiscal year; plus
(II) any amount paid to the
State under paragraph (3)
during the fiscal year that is
expended by the State under the
State program funded under this
part.
(C) Adjustment of state remittances.--
(i) In general.--The amount otherwise
required by subparagraph (A) to be
remitted by a State for a fiscal year
shall be increased by the lesser of--
(I) the total adjustment for
the fiscal year, multiplied by
the adjustment percentage for
the State for the fiscal year;
or
(II) the unadjusted net
payment to the State for the
fiscal year.
(ii) Total adjustment.--As used in
clause (i), the term ``total
adjustment'' means--
(I) in the case of fiscal
year 1998, $2,000,000;
(II) in the case of fiscal
year 1999, $9,000,000;
(III) in the case of fiscal
year 2000, $16,000,000; and
(IV) in the case of fiscal
year 2001, $13,000,000.
(iii) Adjustment percentage.--As used
in clause (i), the term ``adjustment
percentage'' means, with respect to a
State and a fiscal year--
(I) the unadjusted net
payment to the State for the
fiscal year; divided by
(II) the sum of the
unadjusted net payments to all
States for the fiscal year.
(iv) Unadjusted net payment.--As used
in this subparagraph, the term,
``unadjusted net payment'' means with
respect to a State and a fiscal year--
(I) the total amount paid to
the State under paragraph (3)
in the fiscal year; minus
(II) the amount that, in the
absence of this subparagraph,
would be required by
subparagraph (A) or by section
409(a)(10) to be remitted by
the State in respect of the
payment.
(7) State defined.--As used in this subsection, the
term ``State'' means each of the 50 States and the
District of Columbia.
(8) Annual reports.--The Secretary shall annually
report to the Congress on the status of the Fund.
(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.
* * * * * * *
VIII. ADDITIONAL AND DISSENTING VIEWS
----------
ADDITIONAL VIEWS FOR H.R. 5170
This legislation represents a missed opportunity to
seriously address the ongoing challenge of poverty in America.
Over the past 50 years, Congress has enacted laws that
lifted tens of millions of Americans out of poverty, making our
anti-poverty programs ten times more effective than they were
when the War on Poverty began.
But nearly 47 million Americans are still living in
poverty, including one in five children. These families, and
the millions of families at risk of falling into poverty, face
impossible choices every day: transportation to work, child
care, school supplies, food for dinner, and a place to live.
They worry about what they will do if they or their children
get sick and they have no paid leave at work, or how they will
get to work if the car breaks down. And they have nothing left
at the end of the month to save for college or retirement.
A serious attempt to fight poverty would include action on
the basic supports needed to support work and sustain
employment--paid leave, access to quality child care, equal pay
for women and a decent minimum wage, and an Earned Income Tax
Credit that reaches all workers who need it.
A serious attempt to fight poverty would include action on
affordable housing, access to early childhood education, and an
effort to make college more affordable to help struggling
families raise their children and help them toward a better
life.
A serious attempt to fight poverty would build on
successful programs like the Supplemental Nutrition Assistance
Program (SNAP), which lifts nearly 10 million Americans out of
poverty, and the Social Services Block Grant (SSBG), which
provides critical help to nearly 30 million Americans. And it
would build on the Affordable Health Care, which has given
families long-awaited peace of mind about high medical bills.
The millions of families that are struggling deserve more
than this legislation.
Sander M. Levin,
Ranking Member.
DISSENTING VIEWS FOR H.R. 5170
Social impact financing offers the potential of greater
private involvement and resources to tackle some serious social
problems. Though still in an experimental stage, states and
localities are involved with feasibility studies to determine
its usefulness. Without our approving any new legislation, any
state can already use Temporary Assistance for Needy Families
funds for social impact financing so long as the initiative is
designed to achieve the statutory purposes of TANF. If the
laboratories of democracy think this approach to engage the
private sector is cost efficient, they can do it now.
What this bill does is authorize the use of TANF funds for
non-TANF purposes. It removes $100 million from a contingency
fund for needy families, transfers it away from the supervision
of the Department of Health and Human Services, and authorizes
its expenditure for what may well be worthy purposes but
purposes that are not related to TANF. Now is not the time to
reduce funding for needy children.
The TANF contingency fund should be focused on effective
ways to assist impoverished families moving into long-term jobs
through which they earn enough to support their families and to
offer direct assistance to those children in families who
cannot secure such jobs. It should not be treated as a slush
fund to fund an as yet unproven social experiment.
In Texas, only one of every 20 children living below the
poverty line receives direct TANF assistance. That's not
temporary assistance for needy families--it's no assistance at
all for most. Too often TANF has meant less and less for fewer
and fewer.
The sponsors of this legislation refuse any change to this
bill. Even my modest amendment offering a compromise to require
that at least half of the monies be used for programs that
directly benefit children was rejected on a recorded vote.
A number of young entrepreneurs with a social conscience,
with a desire to give back to our communities, these
entrepreneurs are applying their talents regarding how they can
make a difference to resolve some of the pressing social
problems that we face. In Austin, Texas, for example, I am
impressed with a number of feasibility studies already underway
to engage more private resources in offering answers to
pressing public concerns.
But not everyone who applies for these funds is certain to
bring this outlook. Many of our nonprofits in Texas and across
America are trying to grapple with serious local problems like
child abuse that have been substantially aggravated by State
neglect. As the need for services has soared and public
resources have dwindled, these good people in many cases are
truly desperate for help--willing to try almost anything that
might help them to help others. In designing a new program with
$100 million in taxpayer funds, we need to ensure that those
dollars are put to effective use. We have to consider the
possibility of the unscrupulous offering false hope to a
desperate local community. This bill lacks adequate safeguards.
Lloyd Doggett.
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