[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 2240 Introduced in Senate (IS)]
<DOC>
117th CONGRESS
1st Session
S. 2240
To establish a national and community service pay for results program.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 24, 2021
Mr. Young (for himself and Mr. Reed) introduced the following bill;
which was read twice and referred to the Committee on Health,
Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To establish a national and community service pay for results program.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Volunteer Innovation Act''.
SEC. 2. NATIONAL SERVICE PAY FOR RESULTS PILOT PROGRAM.
Subtitle H of title I of the National and Community Service Act of
1990 (42 U.S.C. 12653 et seq.) is amended--
(1) by redesignating parts IV and V as parts V and VI,
respectively; and
(2) by inserting after part III the following:
``PART IV--NATIONAL SERVICE PAY FOR RESULTS PROGRAM
``SEC. 198L. DEFINITIONS.
``In this part:
``(1) B corps entity.--The term `B Corps entity' means a
private for-profit entity that--
``(A) has social sustainability or environmental
performance standards;
``(B) has accountability standards; and
``(C) is transparent in reporting the entity's
social or environmental performance.
``(2) B corps partnership.--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).
``(3) Eligible entity.--The term `eligible entity' means--
``(A) a B Corps partnership; or
``(B) a community-based entity (as defined in
section 101).
``(4) Intervention.--The term `intervention' means a
specific service delivered to achieve an impact through a
national service pay for results project.
``(5) National service pay for results model.--The term
`national service pay for results model' means a method of
financing national service programs in which--
``(A) Federal funds are awarded to a eligible
entity, only if the eligible entity achieves certain
outcomes agreed on by the entity and the Corporation;
``(B) the eligible entity coordinates with the
Chief Executive Officer and investors to identify--
``(i) an intervention expected to produce
the outcome; and
``(ii) investors to fund the delivery of
the intervention; and
``(C) the eligible entity implements the
intervention through the use of participants.
``(6) National service pay for results project.--The term
`national service pay for results project' means a project that
finances national service programs using a national service pay
for results model.
``(7) Participant.--The term `participant' has the meaning
given the term in section 101.
``SEC. 198M. NATIONAL SERVICE PAY FOR RESULTS PILOT PROGRAM.
``(a) Planning Period.--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.
``(b) Notice.--
``(1) In general.--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.
``(2) Manner of notice.--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).
``(c) Required Outcomes for National Service Pay for Results
Project.--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).
``(d) Application Required.--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:
``(1) The outcome goals of the project.
``(2) The anticipated number of participants needed to
implement the project.
``(3) 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.
``(4) A description of each intervention in the project and
anticipated outcomes of the intervention.
``(5) A plan for implementing each intervention through the
use of participants.
``(6) Rigorous evidence demonstrating that the intervention
can be expected to produce the desired outcomes.
``(7) The target population that will be served by the
project.
``(8) The expected social benefits to individuals who
receive the intervention, the participants working on the
project, and others who may be impacted.
``(9) 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.
``(10) 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.
``(11) 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.
``(12) 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.
``(13) An explanation of the experience of the eligible
entity in raising private and philanthropic capital to fund
social service investments.
``(14) 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.
``(15) 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.
``(16) The proposed payment terms, the methodology used to
calculate outcome payments, the payment schedule, and
performance thresholds.
``(17) The project budget.
``(18) The project timeline, provided that, notwithstanding
section 187, all projects shall be limited to a duration of 5
years.
``(19) 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.
``(20) The evaluation design.
``(21) 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.
``(22) 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.
``(23) 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.
``(24) Any potential payment disputes related to the
outcomes of the evaluation.
``(25) The capacity of the eligible entity to deliver the
intervention to the number of participants the eligible entity
proposes to serve in the project.
``(26) 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.
``(e) Prohibited Activities and Ineligible Organizations.--
``(1) Community-based entity.--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.
``(2) B corps entity.--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.
``SEC. 198N. AWARDING NATIONAL SERVICE PAY FOR RESULTS PILOT PROGRAM
FUNDS.
``(a) Timeline in Awarding Agreement.--
``(1) In general.--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.
``(2) Fewer applicants.--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.
``(b) Considerations in Awarding Agreement.--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--
``(1) 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
``(2) consider--
``(A) the anticipated utilization of participants,
and whether the eligible entity plans to utilize
participants who come from a high-risk background;
``(B) 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;
``(C) the likelihood, based on evidence provided in
the application and other evidence, that the eligible
entity will achieve those outcomes;
``(D) the savings to the Federal Government if the
outcomes specified in the agreement are achieved as a
result of the intervention;
``(E) the savings to State and local governments if
the outcomes specified in the agreement are achieved as
a result of the intervention; and
``(F) the expected quality of the evaluation that
would be conducted with respect to the agreement.
``(c) Agreement Authority.--
``(1) Agreement requirements.--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:
``(A) 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.
``(B) 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.
``(C) The project will begin not more than 12
months after the eligible entity has been selected.
``(D) Notwithstanding section 187, the duration of
the project does not exceed 5 years.
``(E) 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.
``(F) 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.
``(G) 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.
``(H) The project will utilize participants to
implement the intervention.
``(2) Ability to finance project.--
``(A) Plan.--On the date that is 6 months after the
date of an agreement under this subsection--
``(i) 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
``(ii) 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.
``(B) Funds reserved.--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.
``(3) Impact of selection.--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--
``(A) the project shall be considered to be a
national service program under section 122(a); and
``(B) the entity shall be considered to be a grant
recipient under subtitle C.
``(4) Payment.--
``(A) In general.--The eligible entity selected
under this part shall pay the entire up-front costs of
the project under this part.
``(B) Outcome payment.--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.
``(C) Amount of payment.--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.
``(D) Applicability of limitation on program grant
costs.--Section 189 shall not apply to a pay for
results project under this part.
``(d) National Service Members.--
``(1) In general.--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.
``(2) Eligible entity responsibility.--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.
``(3) Eligibility for educational award.--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.
``SEC. 198N-1. EVALUATIONS.
``(a) Authority To Enter Into Agreements.--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.
``(b) Evaluator Qualifications.--The Corporation may not enter into
an agreement with an entity under this section unless the Corporation
determines that--
``(1) the evaluator is independent of the other parties to
the agreement; and
``(2) 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.
``(c) Methodologies To Be Used.--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.
``(d) Progress Report.--
``(1) Submission of report.--The eligible entity shall
ensure that the independent evaluator will--
``(A) 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
``(B) 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.
``(2) Submission to the ceo and congress.--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.
``(e) Final Report.--
``(1) Submission of report.--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--
``(A) evaluate the effects of the activities
undertaken pursuant to the agreement with regard to
each outcome specified in the agreement; and
``(B) 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.
``(2) Submission to the ceo and congress.--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.
``(f) Limitation on Cost of Evaluations.--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.
``(g) Applicability of Other Evaluation Provisions.--Section 179
shall not apply with respect to a national service pay for results
project that is evaluated in accordance with this section.
``SEC. 198N-2. FUNDING.
``(a) Prohibition on Federal Funding for Credit Enhancements.--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.
``(b) Matching Funds Requirements Not Applicable.--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.''.
SEC. 3. CONFORMING AMENDMENTS.
(a) Types of National Service Positions.--Section 123 of the
National and Community Service Act of 1990 (42 U.S.C. 12573) is
amended--
(1) by redesignating paragraph (8) as paragraph (9); and
(2) by inserting after paragraph (7) the following:
``(8) A position for a participant in a national service
pay for results project that is selected under part IV of
subtitle H.''.
(b) Provision of Approved National Service Positions.--Section 129
of such Act (42 U.S.C. 12581) is amended--
(1) in the first sentence of subsection (c)--
(A) by striking ``or as'' and inserting ``, as'';
and
(B) by striking ``shall receive'' and inserting
``or as a national service member in a national service
pay for results project that is selected under part IV
of subtitle H shall receive''; and
(2) in subsections (j)(1) and (k)(3), by striking
``501(a)(2)'' and inserting ``501(a)(2)(A)''.
(c) Approval Process for Approved Positions.--Section 149 of such
Act (42 U.S.C. 12606) is amended--
(1) in subsection (a)(1)(A)(ii), by inserting after
``section 123'' the following: ``or enters into an agreement
with an entity to carry out a national service pay for results
project under part IV of subtitle H''; and
(2) in subsection (b)(1)(B)(ii), by striking ``E of this
title,'' and inserting ``E of this title, part IV of subtitle H
of this title,''.
(d) Limitation on Program Grant Costs.--Section 189(c) is amended
by striking the period at the end and inserting ``, and shall not apply
to a pay for results project under part IV of subtitle H of title I.''.
(e) Authorization of Appropriations.--Section 501(a)(2) of such Act
(42 U.S.C. 12681(a)(2)) is amended to read as follows:
``(2) Subtitles c and d.--
``(A) In general.--There are authorized to be
appropriated, for each fiscal year, such sums as may be
necessary to provide financial assistance under
subtitle C of title I and to provide national service
educational awards under subtitle D of title I for the
number of participants described in section 121(f)(1)
for that fiscal year, subject to subparagraph (B).
``(B) Part iv of subtitle h.--The Corporation shall
transfer such sums as may be necessary from the funds
appropriated under subparagraph (A) for that fiscal
year to part IV of subtitle H of title I, and use the
funds to provide national service educational awards
under subtitle D of title I for participants in
national service pay for results projects.
``(C) Funds available until expended.--Funds
obligated under subparagraph (B) shall remain available
until expended, and any funds deobligated from a pay
for results project under part IV of subtitle H shall
immediately become available for activities authorized
under subtitle C.''.
SEC. 4. VISTA.
Title I of the Domestic Volunteer Service Act of 1973 (42 U.S.C.
4950 et seq.) is amended by inserting after part C the following:
``PART D--NATIONAL SERVICE PAY FOR RESULTS PROGRAM
``SEC. 131. DEFINITIONS.
``In this part:
``(1) B corps entity.--The term `B Corps entity' means a
private for-profit entity that--
``(A) has social sustainability or environmental
performance standards;
``(B) has accountability standards; and
``(C) is transparent in reporting the entity's
social or environmental performance.
``(2) B corps partnership.--The term `B Corps partnership'
means a partnership between a B Corps entity and one or more
community-based entities.
``(3) Community-based entity.--The term `community-based
entity' means a public or private nonprofit organization that--
``(A) has experience with meeting unmet human,
educational, environmental, or public safety needs; and
``(B) meets other such criteria as the Director may
establish.
``(4) Eligible entity.--The term `eligible entity' means--
``(A) a B Corps partnership; or
``(B) a community-based entity.
``(5) Intervention.--The term `intervention' means a
specific service delivered to achieve an impact through a
national service pay for results project.
``(6) National service pay for results model.--The term
`national service pay for results model' means a method of
financing national service programs in which--
``(A) Federal funds are awarded to an eligible
entity, only if the entity achieves certain outcomes
agreed on by the entity and the Director;
``(B) the eligible entity coordinates with the
Director and investors to identify--
``(i) an intervention expected to produce
the outcome; and
``(ii) investors to fund the delivery of
the intervention; and
``(C) the eligible entity implements the
intervention through the use of volunteers.
``(7) National service pay for results project.--The term
`national service pay for results project' means a project that
finances national service programs using a national service pay
for results model.
``SEC. 132. NATIONAL SERVICE PAY FOR RESULTS PILOT PROGRAM.
``(a) Notice.--Not later than 3 months after the date of enactment
of this part, the Director 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.
``(b) Required Outcomes for National Service Pay for Results
Project.--To qualify as a national service pay for results project
under this part, a project must effectively utilize volunteers 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) of the National and Community Service Act of 1990 (42 U.S.C.
12572(a)) or described in section 103(a).
``(c) Application Required.--The notice described in subsection (b)
shall require an eligible entity to submit, not later than 6 months
after the date of publication in the Federal Register under subsection
(a), an application for the national service pay for results project
that addresses each of the following:
``(1) The outcome goals of the project.
``(2) The anticipated number of volunteers needed to
implement the project.
``(3) The criteria used to determine the eligibility of a
volunteer for the project, including how the potential
volunteers will be identified, how such volunteers will be
recruited for the project, and how such volunteers will be
trained for their roles in the project.
``(4) A description of each intervention in the project and
anticipated outcomes of the intervention.
``(5) A plan for implementing each intervention through the
use of volunteers.
``(6) Rigorous evidence demonstrating that the intervention
can be expected to produce the desired outcomes.
``(7) The target population that will be served by the
project.
``(8) The expected social benefits to individuals who
receive the intervention, the volunteers working on the
project, and others who may be impacted.
``(9) 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.
``(10) 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.
``(11) 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.
``(12) A description of the expertise of the eligible
entity, including a summary of the experience of the entity in
delivering the proposed intervention or a similar intervention,
or demonstrating that the entity has the expertise necessary to
deliver the proposed intervention.
``(13) An explanation of the experience of the eligible
entity in raising private and philanthropic capital to fund
social service investments.
``(14) 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.
``(15) 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.
``(16) The proposed payment terms, the methodology used to
calculate outcome payments, the payment schedule, and
performance thresholds.
``(17) The project budget.
``(18) The project timeline, provided that all projects
shall be limited to a duration of 5 years.
``(19) 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.
``(20) The evaluation design.
``(21) 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.
``(22) 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.
``(23) 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.
``(24) Any potential payment disputes related to the
outcomes of the evaluation.
``(25) The capacity of the eligible entity to deliver the
intervention to the number of volunteers the eligible entity
proposes to serve in the project.
``SEC. 133. AWARDING NATIONAL SERVICE PAY FOR RESULTS PILOT PROGRAM
FUNDS.
``(a) Timeline in Awarding Agreement.--
``(1) In general.--Not later than 3 months after the
deadline for applications in accordance with section 132 has
expired, the Director shall select not less than 4 and not more
than 6 eligible entities to participate in national service pay
for results projects.
``(2) Fewer applicants.--Notwithstanding paragraph (1), if
fewer than 4 eligible entities meet the requirements of this
part, the Director may select fewer than 4 entities.
``(b) Considerations in Awarding Agreement.--In determining whether
to enter into an agreement for a national service pay for results
project (the application for which was submitted under section 132) the
Director shall--
``(1) 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
``(2) consider--
``(A) the anticipated utilization of volunteers,
and whether the eligible entity plans to utilize
volunteers who come from a high-risk background;
``(B) 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;
``(C) the likelihood, based on evidence provided in
the application and other evidence, that the eligible
entity will achieve those outcomes;
``(D) the savings to the Federal Government if the
outcomes specified in the agreement are achieved as a
result of the intervention;
``(E) the savings to State and local governments if
the outcomes specified in the agreement are achieved as
a result of the intervention; and
``(F) the expected quality of the evaluation that
would be conducted with respect to the agreement.
``(c) Agreement Authority.--
``(1) Agreement requirements.--The Director may enter into
an agreement for a national service pay for results project
with an eligible entity selected under this part if the
Director determines that each of the following requirements are
met:
``(A) 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.
``(B) 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 Director, in
consultation with the entity.
``(C) The project will begin not more than 12
months after the eligible entity has been selected.
``(D) The duration of the project does not exceed 5
years.
``(E) The eligible entity has demonstrated, through
the application submitted under section 132, 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.
``(F) 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 Director may assist selected programs
in attaining such funding.
``(G) 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.
``(H) The project will utilize volunteers to
implement the intervention.
``(2) Ability to finance project.--
``(A) Plan.--On the date that is 6 months after the
date of an agreement under this subsection--
``(i) the eligible entity shall provide the
Director 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
``(ii) if the Director finds that the
eligible entity is not likely to have the
capability to fully fund the up front costs of
the project, the Director may terminate such
agreement.
``(B) Funds reserved.-- 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 Director may terminate the
agreement under this subsection.
``(3) Impact of selection.--Subject to paragraph (2), for
purposes of applying provisions of part A and part C, if the
Director enters into an agreement with an entity for a project
under this section--
``(A) except with respect to provisions that are
otherwise specified in this part, the entity shall be
considered a sponsoring organization of VISTA; and
``(B) subject to subsection (d) and except with
respect to provisions that are otherwise specified in
this part, the volunteers participating in that project
shall be considered VISTA volunteers.
``(4) Payment.--
``(A) In general.--The eligible entity selected
under this part shall pay the entire up-front costs of
the project under this part.
``(B) Outcome payment.--The Director shall pay the
selected eligible entity, after completion of the
project, only if the independent evaluator described in
section 134(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.
``(C) Amount of payment.--The Director 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.
``(d) Volunteers.--The assignment of volunteers under this part,
and the provision of support for such volunteers, including any
subsistence allowances and stipends, shall be on such terms and
conditions as the Director shall determine to be appropriate, but shall
not exceed the level of support provided under section 105. Projects
using volunteers who do not receive stipends may also be supported
under this part.
``SEC. 134. EVALUATIONS.
``(a) Authority To Enter Into Agreements.--For each eligible entity
awarded a national service pay for results project approved by the
Director under this part, the Director 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.
``(b) Evaluator Qualifications.--The Director may not enter into an
agreement with an entity under this section unless the Director
determines that--
``(1) the evaluator is independent of the other parties to
the agreement; and
``(2) 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.
``(c) Methodologies To Be Used.--The evaluation used to determine
whether an 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.
``(d) Progress Report.--
``(1) Submission of report.--The eligible entity shall
ensure that the independent evaluator will--
``(A) not later than 2 years after a project has
been approved by the Director and annually thereafter
until the project is concluded, submit to the Director
a written report summarizing the progress that has been
made in achieving each outcome specified in the
agreement; and
``(B) before the scheduled time of the first
outcome payment and before the scheduled time of each
subsequent payment, submit to the Director 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.
``(2) Submission to the ceo and congress.--Not later than
30 days after receipt of the written report pursuant to
paragraph (1)(B), the Director shall submit the report to each
of the authorizing committees.
``(e) Final Report.--
``(1) Submission of report.--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--
``(A) evaluate the effects of the activities
undertaken pursuant to the agreement with regard to
each outcome specified in the agreement; and
``(B) submit to the Director 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.
``(2) Submission to the ceo and congress.--Not later than
30 days after receipt of the written report pursuant to
paragraph (1)(B), the Director shall submit the report to each
authorizing committees.
``(f) Limitation on Cost of Evaluations.--Of the amounts
appropriated to carry out this part, the Director may not obligate more
than 15 percent to evaluate the implementation and outcomes of the
projects under this part.
``SEC. 135. FUNDING.
``(a) Prohibition on Federal Funding for Credit Enhancements.--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.
``(b) Matching Funds Requirements Not Applicable.--An entity
awarded an agreement under this part shall not be subject to a matching
funds requirement.''.
SEC. 5. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated a total of $5,000,000--
(1) to carry out part IV of subtitle H of title I of the
National and Community Service Act of 1990 (42 U.S.C. 12653 et
seq.), as amended by sections 2 and 3 of this Act; and
(2) to carry out part D of title I of the Domestic
Volunteer Service Act of 1973 (42 U.S.C. 4950 et seq.).
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