Sec. 2. National Service Pay for Results Pilot Program
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Subtitle H of title I of the National and Community Service Act of 1990 ( 42 U.S.C. 12653 et seq. ) is amended— by redesignating parts IV and V as parts V and VI, respectively; and by inserting after part III the following: In this part: B Corps entity The term B Corps entity means a private for-profit entity that— has social sustainability or environmental performance standards; has accountability standards; and is transparent in reporting the entity's social or environmental performance.
The term B Corps partnership means a partnership between a B Corps entity and one or more community-based entities (as such term is defined in section 101). The term eligible entity means— a B Corps partnership; or a community-based entity (as defined in section 101). The term intervention means a specific service delivered to achieve an impact through a national service pay for results project. The term national service pay for results model means a method of financing national service programs in which— Federal funds are awarded to a eligible entity, only if the eligible entity achieves certain outcomes agreed on by the entity and the Corporation; the eligible entity coordinates with the Chief Executive Officer and investors to identify— an intervention expected to produce the outcome; and investors to fund the delivery of the intervention; and the eligible entity implements the intervention through the use of participants.
The term national service pay for results project means a project that finances national service programs using a national service pay for results model. The term participant has the meaning given the term in section 101. Not later than 15 days after the date of enactment of this section, the Corporation shall begin a planning and consultation period in order to assess appropriate outreach needed to potential applicants. The Corporation shall conduct an internal review and assessment to plan appropriate allocation of staff and other resources needed to ensure successful implementation of the program under this section.
Not later than 12 months after the date of enactment of this part, the Chief Executive Officer shall publish in the Federal Register a request for proposals from eligible entities for national service pay for results projects in accordance with this section. The Corporation shall provide advance notice to potential eligible entity applicants of any national service priorities to be in effect for a fiscal year, in the same manner as such notice is provided under section 122(f)(2).
To qualify as a national service pay for results project under this part, a project must effectively utilize participants to produce 1 or more measurable, clearly defined outcomes that result in Federal savings and social benefit through any of the activities described in subparagraphs
(B)of paragraphs
(1)through
(5)of section 122(a). The notice described in subsection
(b)shall require a eligible entity to submit, not later than 6 months after the date of publication in the Federal Register under subsection (b), an application for the national service pay for results project that addresses each of the following: The outcome goals of the project. The anticipated number of participants needed to implement the project. The criteria used to determine the eligibility of a participant for the project, including how the potential participants will be identified, how such participants will be recruited for the project, and how such participants will be trained for their roles in the project. A description of each intervention in the project and anticipated outcomes of the intervention. A plan for implementing each intervention through the use of participants. Rigorous evidence demonstrating that the intervention can be expected to produce the desired outcomes. The target population that will be served by the project. The expected social benefits to individuals who receive the intervention, the participants working on the project, and others who may be impacted. The projected cost to the eligible entity to carry out the project, and any costs to the Federal, State, or local government associated with the project. Projected Federal, State, and local government savings and other savings, including an estimate of the savings to the Federal Government, on a program-by-program basis and in the aggregate, if the project is implemented and the outcomes are achieved as a result of the intervention. If savings resulting from the successful completion of the project are estimated to accrue to a State or local government, the likelihood of the State or local government to realize those savings. A description of the expertise of the eligible entity, including a summary of the experience of the eligible entity in delivering the proposed intervention or a similar intervention, or demonstrating that the eligible entity has the expertise necessary to deliver the proposed intervention. An explanation of the experience of the eligible entity in raising private and philanthropic capital to fund social service investments. A description of the expertise of investors that the eligible entity intends to partner with, to the extent that the eligible entity may have identified those investors by the time the application is submitted. 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. The proposed payment terms, the methodology used to calculate outcome payments, the payment schedule, and performance thresholds. The project budget. The project timeline, provided that, notwithstanding section 187, all projects shall be limited to a duration of 5 years. The criteria used to determine the eligibility of an individual to be served by 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. The evaluation design. The metrics that will be used in the evaluation to determine whether the outcomes have been achieved as a result of the intervention and how the metrics will be measured. An explanation of how the metrics used in the evaluation to determine whether the outcomes achieved as a result of the intervention are independent, objective indicators of impact and are not subject to manipulation by the eligible entity or investor. 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. Any potential payment disputes related to the outcomes of the evaluation. The capacity of the eligible entity to deliver the intervention to the number of participants the eligible entity proposes to serve in the project. The assurances described in sections 131(e) and 132(a), except that such assurances shall apply to the project carried out using assistance provided under this part. Section 132A shall apply to community-based entities carrying out a national service pay for results project under this part and to participants in those projects. For purposes of section 132(a)(1) and section 132A(a)(8)(A), a B Corps entity shall not be considered a business organized for profit. Not later than 3 months after the deadline for applications in accordance with section 198M has expired, the Chief Executive Officer shall select not less than 4 and not more than 6 community-based entities or eligible entities to participate in national service pay for results projects. Notwithstanding paragraph (1), if fewer than 4 community-based entities or eligible entities meet the requirements of this part, the Chief Executive Officer may select fewer than 4 entities or partnerships. In determining whether to enter into an agreement for a national service pay for results project (the application for which was submitted under section 198M) the Chief Executive Officer shall— seek to ensure geographic diversity in selected entities, including by selecting not less than 1 eligible entity that plans to serve a rural community and not less than 1 eligible entity that plans to serve an urban community; and consider— the anticipated utilization of participants, and whether the eligible entity plans to utilize participants who come from a high-risk background; the value to the Federal Government of the outcomes expected to be achieved if the outcomes specified in the agreement are achieved as a result of the intervention; the likelihood, based on evidence provided in the application and other evidence, that the eligible entity will achieve those outcomes; the savings to the Federal Government if the outcomes specified in the agreement are achieved as a result of the intervention; the savings to State and local governments if the outcomes specified in the agreement are achieved as a result of the intervention; and the expected quality of the evaluation that would be conducted with respect to the agreement. The Chief Executive Officer may enter into an agreement for a national service pay for results project with an eligible entity selected under this part if the Chief Executive Officer determines that each of the following requirements are met: The eligible entity agrees to achieve 1 or more outcomes as a result of the intervention, as specified in the agreement and validated by independent evaluation, in order to receive payment. The Federal payment to the eligible entity for each specified outcome achieved as a result of the intervention is less than or equal to the value of the outcome to the Federal Government over a period not to exceed 10 years, as determined by the Chief Executive Officer, in consultation with the entity. The project will begin not more than 12 months after the eligible entity has been selected. Notwithstanding section 187, the duration of the project does not exceed 5 years. The eligible entity has demonstrated, through the application submitted under section 198M, 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. The eligible entity has experience raising private or philanthropic capital to fund social service investments. To the extent the eligible entity does not have such experience or is unable to secure private or philanthropic capital prior to its application submission, the Corporation may assist selected programs in attaining such funding. The eligible entity applying for the program has shown that it has experience delivering the intervention, a similar intervention, or has otherwise demonstrated the expertise necessary to deliver the intervention. The project will utilize participants to implement the intervention. On the date that is 6 months after the date of an agreement under this subsection— the eligible entity shall provide the Chief Executive Officer with a plan demonstrating that the entity has the capability to fully fund the up-front costs of the project and will have such funds available and reserved for the project not later than 1 year after the date of such agreement; and if the Chief Executive Officer finds that the eligible entity is not likely to have the capability to fully fund the up front costs of the project, the Chief Executive Officer may terminate such agreement. On the date that is 6 months after the date of an agreement under this subsection, if the eligible entity does not have the funds available and reserved to fully fund the up-front costs of the project, the Chief Executive Officer may terminate the agreement under this subsection. Subject to paragraph (2), for purposes of applying provisions of subtitles C, D, and F under this part, if the Corporation enters into an agreement with an entity for a project under this section— the project shall be considered to be a national service program under section 122(a); and the entity shall be considered to be a grant recipient under subtitle C. The eligible entity selected under this part shall pay the entire up-front costs of the project under this part. The Corporation shall pay the selected eligible entity, after completion of the project, only if the independent evaluator described in section 198N–1(b) determines that the national service pay for results project has met the requirements specified in the agreement and achieved an outcome as a result of the intervention, as specified in the agreement and validated by independent evaluation. The Corporation shall have discretion in determining the amount of funds awarded for each pay for results project under this part, except that such amount shall be specified as part of the agreement with each entity under this section and shall be consistent with the requirements of part III of subtitle C, and subtitle D. Section 189 shall not apply to a pay for results project under this part. For purposes of applying subtitles C, D, and F under this part, the Corporation shall consider a participant in a pay for results project under this part to be a participant in a national service program in the same manner as, and under the same conditions as, a participant in a program under subtitle C. Unless otherwise specified in this part, the terms and conditions applicable to a participant under subtitle C, including the terms and conditions described under part III of that subtitle, shall apply in the same manner to a participant who participates in a pay for results program under this part. Each selected eligible entity will be responsible for recruiting, selecting, and training the participants participating in projects carried out by that eligible entity under this part, consistent with part III of that subtitle. The entity shall carry out the responsibilities and authorities described in part III of that subtitle for a grant recipient. Participants in a pay for results project under this part shall be eligible for a national service educational award described in section 146 in the same manner as, and under the same conditions as, individuals who participate in other approved national service positions. For each eligible entity awarded a national service pay for results project approved by the Chief Executive Officer under this part, the Corporation shall enter into an agreement with such eligible entity to pay for all or part of the independent evaluation to determine whether the entity’s project has achieved a specific outcome as a result of the intervention in order for the selected entity to receive outcome payments under this part. The Corporation may not enter into an agreement with an entity under this section unless the Corporation determines that— the evaluator is independent of the other parties to the agreement; and the evaluator 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. The evaluation used to determine whether a eligible entity will receive outcome payments under this part shall use experimental designs using random assignment, or other reliable, evidence-based research methodologies that allow for the strongest possible causal inferences when random assignment is not feasible. The eligible entity shall ensure that the independent evaluator will— not later than 2 years after a project has been approved by the Chief Executive Officer and annually thereafter until the project is concluded, submit to the Chief Executive Officer a written report summarizing the progress that has been made in achieving each outcome specified in the agreement; and before the scheduled time of the first outcome payment and before the scheduled time of each subsequent payment, submit to the Chief Executive Officer 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. Not later than 30 days after receipt of the written report pursuant to paragraph (1)(B), the Chief Executive Officer shall submit the report to each of the authorizing committees. The eligible entity shall ensure that the independent evaluator will, not later than 6 months after the national service pay for results project is completed— evaluate the effects of the activities undertaken pursuant to the agreement with regard to each outcome specified in the agreement; and submit to the Chief Executive Officer a written report that includes the results of the evaluation and the conclusion of the evaluator as to whether the eligible entity 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. Not later than 30 days after receipt of the written report pursuant to paragraph (1)(B), the Chief Executive Officer shall submit the report to each authorizing committees. Of the amounts appropriated to carry out this part, the Chief Executive Officer may not obligate more than 15 percent to evaluate the implementation and outcomes of the projects under this part. Section 179 shall not apply with respect to a national service pay for results project that is evaluated in accordance with this section. No amount appropriated to carry out this part may be used to provide any insurance, guarantee, or other credit enhancement to an eligible entity under which a Federal payment would be made to an eligible entity, as the result of such entity failing to achieve an outcome specified in an agreement. An eligible entity awarded an agreement under this part shall not be subject to the matching funds requirement in section 121(e) or any other matching funds requirements that are applicable to activities funded under this Act. .
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Sec. 2
National Service Pay for Results Pilot Program
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