OPTION TO FUND EVIDENCE-BASED HOME VISITING ON A PAY FOR OUTCOME BASIS.

SEC. 50605. OPTION TO FUND EVIDENCE-BASED HOME VISITING ON A PAY FOR OUTCOME BASIS. (a) In General Section 511(c) of the Social Security Act (42 U.S.C. 711(c)) is amended by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively, and by inserting after paragraph (2) the following: “(3) Authority to use grant for a pay for outcomes initiative An eligible entity to which a grant is made under paragraph (1) may use up to 25 percent of the grant for outcomes or success payments related to a pay for outcomes initiative that will not result in a reduction of funding for services delivered by the entity under a childhood home visitation program under this section while the eligible entity develops or operates such an initiative.” . (b) Definition of Pay for Outcomes Initiative Section 511(k) of such Act (42 U.S.C. 711(k)) is amended by adding at the end the following: “(4) Pay for outcomes initiative The term ‘pay for outcomes initiative’ means a performance-based grant, contract, cooperative agreement, or other agreement awarded by a public entity in which a commitment is made to pay for improved outcomes achieved as a result of the intervention that result in social benefit and direct cost savings or cost avoidance to the public sector. Such an initiative shall include— “(A) a feasibility study that describes how the proposed intervention is based on evidence of effectiveness; “(B) a rigorous, third-party evaluation that uses experimental or quasi-experimental design or other research methodologies that allow for the strongest possible causal inferences to determine whether the initiative has met its proposed outcomes as a result of the intervention; “(C) an annual, publicly available report on the progress of the initiative; and “(D) a requirement that payments are made to the recipient of a grant, contract, or cooperative agreement only when agreed upon outcomes are achieved, except that this requirement shall not apply with respect to payments to a third party conducting the evaluation described in subparagraph (B).” . (c) Extended Availability of Funds Section 511(j)(3) of such Act (42 U.S.C. 711(j)(3)) is amended— (1) by striking “(3) Availability.—Funds” and inserting the following: “(3) Availability “(A) In general Except as provided in subparagraph (B), funds” ; and (2) by adding at the end the following: “(B) Funds for pay for outcomes initiatives Funds made available to an eligible entity under this section for a fiscal year (or portion of a fiscal year) for a pay for outcomes initiative shall remain available for expenditure by the eligible entity for not more than 10 years after the funds are so made available.” .