[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1855 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 1855
To promote industry growth and competitiveness and to improve worker
training, retention, and advancement, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 1, 2009
Mr. Loebsack (for himself and Mr. Platts) introduced the following
bill; which was referred to the Committee on Education and Labor, and
in addition to the Committees on Ways and Means and the Judiciary, for
a period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To promote industry growth and competitiveness and to improve worker
training, retention, and advancement, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Strengthening Employment Clusters to
Organize Regional Success Act of 2009'' or the ``SECTORS Act of 2009''.
SEC. 2. INDUSTRY OR SECTOR PARTNERSHIP GRANT.
Subtitle D of title I of the Workforce Investment Act of 1998 (29
U.S.C. 2911 et seq.) is amended by inserting after section 174 the
following:
``SEC. 174A. INDUSTRY OR SECTOR PARTNERSHIP GRANT PROGRAM.
``(a) Purpose.--It is the purpose of this section to create
designated capacity to promote industry or sector partnerships that
lead collaborative planning, resource alignment, and training efforts
across multiple firms for a range of workers employed or potentially
employed by a targeted industry cluster, in order to encourage industry
growth and competitiveness and to improve worker training, retention,
and advancement in targeted industry clusters, including by
developing--
``(1) immediate strategies for regions and communities to
fulfill pressing skilled workforce needs;
``(2) long-term plans to grow targeted industry clusters
with better training and a more productive workforce;
``(3) core competencies and competitive advantages for
regions and communities undergoing structural economic
redevelopment; and
``(4) cross-firm skill standards, career ladders, job
redefinitions, employer practices, and shared training and
support capacities that facilitate the advancement of workers
at all skill levels.
``(b) Definitions.--In this section:
``(1) Career ladder.--The term `career ladder' means an
identified series of positions, work experiences, and
educational benchmarks or credentials that offer occupational
and financial advancement within a specified career field or
related fields over time.
``(2) Economic self-sufficiency.--The term `economic self-
sufficiency' means, with respect to a worker, earning a wage
sufficient to support a family adequately over time, based on
factors such as--
``(A) family size;
``(B) the number and ages of children in the
family;
``(C) the cost of living in the worker's community;
and
``(D) other factors that may vary by region.
``(3) Eligible entity.--The term `eligible entity' means--
``(A) an industry or sector partnership; or
``(B) an eligible State agency.
``(4) Eligible state agency.--The term `eligible State
agency' means a State agency designated by the Governor of the
State for the purposes of the grant program under this section.
``(5) High-priority occupation.--The term `high-priority
occupation' means an occupation that--
``(A) has a significant presence in an industry
cluster;
``(B) is in demand by employers;
``(C) pays family-sustaining wages that enable
workers to achieve economic self-sufficiency, or can
reasonably be expected to lead to such wages;
``(D) has a documented career ladder; and
``(E) has a significant impact on a region's
economic development strategy.
``(6) Industry cluster.--The term `industry cluster' means
a concentration of interconnected businesses, suppliers,
research and development, service providers, and associated
institutions in a particular field that are linked by common
workforce needs.
``(7) Industry or sector partnership.--The term `industry
or sector partnership' means a workforce collaborative that--
``(A) organizes key stakeholders in a targeted
industry cluster into a working group that focuses on
the human capital needs of a targeted industry cluster
and that includes, at the appropriate stage of
development of the partnership--
``(i) representatives of multiple firms or
employers, including workers, in a targeted
industry cluster, including small- and medium-
sized employers when practicable;
``(ii) 1 or more representatives of State
labor organizations, central labor coalitions,
or other labor organizations;
``(iii) 1 or more representatives of local
boards;
``(iv) 1 or more representatives of
postsecondary educational institutions or other
training providers; and
``(v) 1 or more representatives of State
workforce agencies or other entities providing
employment services; and
``(B) may include representatives of--
``(i) State or local government;
``(ii) State or local economic development
agencies;
``(iii) other State or local agencies;
``(iv) chambers of commerce;
``(v) nonprofit organizations;
``(vi) philanthropic organizations;
``(vii) economic development organizations;
``(viii) industry associations; and
``(ix) other organizations, as determined
necessary by the members comprising the
industry or sector partnership.
``(8) Targeted industry cluster.--The term `targeted
industry cluster' means an industry cluster that has--
``(A) economic impact in a local or regional area;
``(B) immediate workforce development needs; and
``(C) documented career opportunities.
``(c) Grants Authorized.--
``(1) In general.--From amounts appropriated under
subsection (i), the Secretary shall award, on a competitive
basis, planning grants described in paragraph (3) and
implementation grants described in paragraph (4) to eligible
entities, to enable the eligible entities to plan and
implement, respectively, the eligible entities' strategic
objectives in accordance with subsection (f).
``(2) Maximum amount.--
``(A) Planning grants.--A planning grant awarded
under paragraph (3) shall not exceed $250,000.
``(B) Implementation grants.--An implementation
grant awarded under paragraph (4)(A) shall not exceed a
total of $2,500,000 for a 3-year period.
``(C) Renewal grants.--A renewal grant awarded
under paragraph (4)(C) shall not exceed a total of
$1,500,000 for a 3-year period.
``(3) Planning grants.--
``(A) In general.--The Secretary may award a
planning grant under this section to an eligible entity
that--
``(i) is a newly formed industry or sector
partnership; and
``(ii) has not received a grant under this
section.
``(B) Duration.--A planning grant shall be for a
duration of 1 year.
``(4) Implementation grants.--
``(A) In general.--The Secretary may award an
implementation grant under this section to--
``(i) an eligible entity that has already
received a planning grant under this section;
or
``(ii) an eligible entity that is an
established industry or sector partnership.
``(B) Duration.--An implementation grant shall be
for a duration of not more than 3 years, and may be
renewed in accordance with subparagraph (C).
``(C) Renewal.--The Secretary may renew an
implementation grant for not more than 3 years. A
renewal of such grant shall be subject to the
requirements of this section, except that the Secretary
shall--
``(i) prioritize renewals to eligible
entities that can demonstrate the long-term
sustainability of an industry or sector
partnership funded under this section;
``(ii) as a condition of renewing the
grant, and notwithstanding subsection (d),
decrease the amount of the Federal share and
increase the amount of the non-Federal share
required for the grant, which must include at
least a 25 percent cash match from the State,
the industry cluster, or some combination
thereof; and
``(iii) require assurances that the
eligible entity will leverage, each year,
additional funding sources in accordance with
subparagraph (D)(ii) than the eligible entity
provided for the preceding year of the grant.
``(D) Federal and non-federal share.--
``(i) Federal share.--Except as provided in
subparagraph (C)(ii) and (D)(iii), the Federal
share of an implementation grant under this
section shall be--
``(I) 90 percent of the costs of
the activities described in subsection
(g), in the first year of the grant;
``(II) 80 percent of such costs in
the second year of the grant; and
``(III) 70 percent of such costs in
the third year of the grant.
``(ii) Non-federal.--The non-Federal share
of an implementation grant under this section
may be in cash or in-kind, and may come from
State, local, philanthropic, private, or other
sources.
``(iii) Exception.--The Secretary may
require the Federal share of an implementation
grant under this section to be 100 percent if
an eligible entity receiving such grant is
located in a State or local area that is
receiving a national emergency grant under
section 173.
``(5) Fiscal agent.--Each eligible entity receiving a grant
under this section that is an industry or sector partnership
shall designate an entity in the partnership as the fiscal
agent for purposes of this grant.
``(6) Use of grant funds during grant periods.--An eligible
entity receiving grant funds under a planning grant,
implementation grant, or a renewal grant under this section
shall expend grant funds or obligate grant funds to be expended
by the last day of the grant period.
``(d) Application Process.--
``(1) Identification of a targeted industry cluster.--In
order to qualify for a grant under this section, an eligible
entity shall identify a targeted industry cluster that could
benefit from such grant by--
``(A) working with businesses, industry
associations and organizations, labor organizations,
State boards, local boards, economic development
agencies, and other organizations that the eligible
entity determines necessary, to identify an appropriate
targeted industry cluster based on criteria that
include, at a minimum--
``(i) data showing the competitiveness of
the industry cluster;
``(ii) the importance of the industry
cluster to the economic development of the area
served by the eligible entity;
``(iii) the identification of supply and
distribution chains within the industry
cluster; and
``(iv) research studies on industry
clusters; and
``(B) working with appropriate employment agencies,
workforce investment boards, economic development
agencies, community organizations, and other
organizations that the eligible entity determines
necessary to ensure that the targeted industry cluster
identified under subparagraph (A) should be targeted
for investment, based primarily on the following
criteria:
``(i) Demonstrated demand for job growth
potential.
``(ii) Measurable evidence of
competitiveness.
``(iii) Employment base.
``(iv) Wages and benefits.
``(v) Demonstrated importance of the
targeted industry cluster to the area's
economy.
``(vi) Workforce development needs.
``(2) Application.--An eligible entity desiring to receive
a grant under this section shall submit an application to the
Secretary at such time, in such manner, and containing such
information as the Secretary may require. An application
submitted under this paragraph shall contain, at a minimum, the
following:
``(A) A description of the eligible entity,
evidence of the eligible entity's capacity to carry out
activities in support of the strategic objectives
identified in the application under subparagraph (D),
and, if the eligible entity is an industry or sector
partnership, a description of the expected
participation and responsibilities of each of the
mandatory partners described in subsection (b)(8)(A).
``(B) A description of the targeted industry
cluster for which the eligible entity intends to carry
out activities through a grant under this section, and
a description of how such targeted industry cluster was
identified in accordance with paragraph (1).
``(C) A description of the workers that will be
targeted or recruited by the partnership, including an
analysis of the existing labor market, a description of
potential barriers to employment for targeted workers,
and a description of strategies that will be employed
to help workers overcome such barriers.
``(D) A description of the strategic objectives
that the eligible entity intends to carry out for the
targeted industry cluster, which objectives shall
include--
``(i) recruiting key stakeholders in the
targeted industry cluster, such as businesses
and employers, labor organizations, industry
associations, local boards, State boards, and
education and training providers, and regularly
convening the stakeholders in a collaborative
structure that supports the sharing of
information, ideas, and challenges common to
the targeted industry cluster;
``(ii) identifying the training needs of
multiple businesses, especially skill gaps
critical to competitiveness and innovation to
the targeted industry cluster;
``(iii) facilitating economies of scale by
aggregating training and education needs of
multiple employers;
``(iv) helping postsecondary educational
institutions, training institutions, and
registered apprenticeship programs align
curricula entrance requirements and programs to
industry demand, particularly for higher skill,
high-priority occupations validated by the
industry;
``(v) ensuring that the State agency,
including services provided by State merit
staff authorized under the Wagner-Peyser Act
program, shall inform recipients of
unemployment insurance and trade adjustment
assistance under chapter 2 or 6 of title II of
the Trade Act of 1974 (19 U.S.C. 2271 et seq.,
2401 et seq.) of the job and training
opportunities that may result from the
implementation of this grant;
``(vi) informing and collaborating with
organizations such as youth councils, business-
education partnerships, apprenticeship
programs, secondary schools, and postsecondary
educational institutions, and with parents and
career counselors, for the purpose of
addressing the challenges of connecting
disadvantaged adults as defined in section
132(b)(1)(B)(v) and disadvantaged youth as
defined in section 127(b) to careers;
``(vii) helping companies identify, and
work together to address, common organizational
and human resource challenges, such as--
``(I) recruiting new workers;
``(II) implementing effective
workplace practices;
``(III) retaining dislocated and
incumbent workers;
``(IV) implementing a high-
performance work organization;
``(V) recruiting and retaining
women in nontraditional occupations;
``(VI) adopting new technologies;
and
``(VII) fostering experiential and
contextualized on-the-job learning;
``(viii) developing and strengthening
career ladders within and across companies (in
cooperation with labor organizations if the
labor organizations represent employees engaged
in similar work in the industry cluster), in
order to enable dislocated, incumbent and
entry-level workers to improve skills and
advance to higher-wage jobs;
``(ix) improving job quality through
improving wages, benefits, and working
conditions;
``(x) helping partner companies in industry
or sector partnerships to attract potential
employees from a diverse job seeker base,
including individuals with barriers to
employment (such as job seekers who are low
income, youth, older workers, and individuals
who have completed a term of imprisonment), by
identifying such barriers through analysis of
the existing labor market and implementing
strategies to help such workers overcome such
barriers; and
``(xi) strengthening connections among
businesses in the targeted industry cluster,
leading to cooperation beyond workforce issues
that will improve competitiveness and job
quality, such as joint purchasing, market
research, or centers for technology and
innovation.
``(E) A description of the manner in which the
eligible entity intends to make sustainable progress
toward the strategic objectives described in
subparagraph (D).
``(F) Performance measures, including quantifiable
interim performance, for measuring progress toward the
strategic objectives. Such measures shall consider, at
a minimum, the benefits provided by the grant
activities funded under this section for--
``(i) workers employed in the targeted
industry cluster, disaggregated by gender and
race, including--
``(I) the number of workers
receiving portable industry-recognized
credentials;
``(II) the number of workers with
increased wages, the percentage of
workers with increased wages, and the
average wage increase; and
``(III) for dislocated or
nonincumbent workers, the number of
workers placed in sector-related jobs;
and
``(ii) firms and industries in the targeted
industry cluster, including--
``(I) the creation or updating of
an industry plan to meet current and
future workforce demand;
``(II) the creation or updating of
published industry-wide skill standards
or career pathways;
``(III) the creation or updating of
portable, industry-recognized
credentials, or where there is not such
a credential, the creation or updating
of a training curriculum that can lead
to the development of such a
credential;
``(IV) in the case of an eligible
entity that is an industry or sector
partnership, the number of firms, and
the percentage of the local industry,
participating in the industry or sector
partnership; and
``(V) the number of firms, and the
percentage of the local industry,
receiving workers or services through
the grant funded under this section.
``(G) A timeline for achieving progress toward the
strategic objectives.
``(H) In the case of an eligible entity desiring an
implementation grant under this section, an assurance
that the eligible entity will leverage other funding
sources, in addition to the amount required for the
non-Federal share under subsection (d), to provide
training or supportive services to workers under the
grant program. Such additional funding sources may
include--
``(i) funding under this title used for
such training and supportive services;
``(ii) funding under the Adult Education
and Family Literacy Act of 1998 (20 U.S.C. 9201
et seq.);
``(iii) funding under chapter 2 or 6 of
title II of the Trade Act of 1974 (19 U.S.C.
2271 et seq.);
``(iv) economic development funding;
``(v) employer contributions to training
initiatives; or
``(vi) providing employees with employee
release time for such training or supportive
services.
``(e) Award Basis.--
``(1) Geographic distribution.--The Secretary shall award
grants under this section in a manner to ensure geographic
diversity.
``(2) Priorities.--In awarding grants under this section,
the Secretary shall give priority to eligible entities that--
``(A) work with employers within a targeted
industry cluster to retain and expand employment in
high wage, high growth areas;
``(B) focus on helping workers move toward economic
self-sufficiency and ensuring the workers have access
to adequate supportive services;
``(C) address the needs of firms with limited human
resources or in-house training capacity, including
small- and medium-sized firms; and
``(D) coordinate with entities carrying out State
and local workforce investment, economic development,
and education activities.
``(f) Activities.--
``(1) In general.--An eligible entity receiving a grant
under this section shall carry out the activities necessary to
meet the strategic objectives described in the entity's
application in a manner that--
``(A) integrates services and funding sources in a
way that enhances the effectiveness of the activities;
and
``(B) uses grant funds awarded under this section
efficiently.
``(2) Administrative costs.--An eligible entity may retain
a portion of a grant awarded under this section for a fiscal
year to carry out the administration of this section in an
amount not to exceed 10 percent of the grant amount.
``(g) Evaluation and Progress Reports.--
``(1) Annual activity report and evaluation.--Not later
than 1 year after receiving a grant under this section, and
annually thereafter, an eligible entity shall--
``(A) report to the Secretary, and to the Governor
of the State that the eligible entity serves, on the
activities funded pursuant to a grant under this
section; and
``(B) evaluate the progress the eligible entity has
made toward the strategic objectives identified in the
application under subsection (d)(2)(D), and measure the
progress using the performance measures identified in
the application under subsection (d)(2)(F).
``(2) Report to the secretary.--An eligible entity
receiving a grant under this section shall submit to the
Secretary a report containing the results of the evaluation
described in subparagraph (B) at such time and in such manner
as the Secretary may require.
``(h) Administration by the Secretary.--
``(1) Administrative costs.--The Secretary may retain not
more than 10 percent of the funds appropriated pursuant to the
authorization of appropriations under subsection (j) for each
fiscal year to administer this section.
``(2) Technical assistance and oversight.--The Secretary
shall provide technical assistance and oversight to assist the
eligible State and local agencies or eligible entities in
applying for and administering grants awarded under this
section. The Secretary shall also provide technical assistance
to eligible entities in the form of conferences and through the
collection and dissemination of information on best practices
developed by eligible partnerships. The Secretary may award a
grant or contract to 1 or more national or State organizations
to provide technical assistance to foster the planning,
formation, and implementation of industry cluster partnerships.
``(3) Geographic equality.--The Secretary shall ensure
that, to the extent practicable, grants are awarded on a
geographically equal basis.
``(4) Performance measures.--The Secretary shall issue a
range of performance measures, with quantifiable benchmarks,
and methodologies that eligible entities may use to evaluate
the effectiveness of each type of activity in making progress
toward the strategic objectives described in subsection
(d)(2)(D). Such measures shall consider the benefits of the
industry or sector partnership and its activities for workers,
firms, industries, and communities.
``(5) Dissemination of information.--The Secretary shall--
``(A) coordinate the annual review of each eligible
entity receiving a grant under this section and produce
an overview report that, at a minimum, includes--
``(i) the critical learning of each
industry or sector partnership, such as--
``(I) the training that was most
effective;
``(II) the human resource
challenges that were most common;
``(III) how technology is changing
the targeted industry cluster; and
``(IV) the changes that may impact
the targeted industry cluster over the
next 5 years; and
``(ii) a description of what eligible
entities serving similar targeted industry
clusters consider exemplary practices, such
as--
``(I) how to work effectively with
postsecondary educational institutions;
``(II) the use of internships;
``(III) coordinating with
apprenticeships and cooperative
education programs;
``(IV) how to work effectively with
schools providing vocational education;
``(V) how to work effectively with
adult populations, including--
``(aa) dislocated workers;
``(bb) women in
nontraditional occupations; and
``(cc) individuals with
barriers to employment, such as
job seekers who--
``(AA) are
economically
disadvantaged;
``(BB) have limited
English proficiency;
``(CC) require
remedial education;
``(DD) are older
workers;
``(EE) are
individuals who have
completed a sentence
for a criminal offense;
and
``(FF) have other
barriers to employment;
``(VI) employer practices that are
most effective;
``(VII) the types of training that
are most effective; and
``(VIII) other areas where industry
or sector partnerships can assist each
other;
``(B) make resource materials, including all
reports published and all data collected under this
section, available on the Internet; and
``(C) conduct conferences and seminars to--
``(i) disseminate information on best
practices developed by eligible entities
receiving a grant under this section; and
``(ii) provide information to the
communities of eligible entities.
``(6) Report.--Not later than 18 months after the date of
enactment of this Act and on an annual basis, the Secretary
shall transmit a report to Congress on the industry or sector
partnership grant program established by this section. The
report shall include a description of--
``(A) the eligible entities receiving funding;
``(B) the activities carried out by the eligible
entities;
``(C) how the eligible entities were selected to
receive funding under this section; and
``(D) an assessment of the results achieved by the
grant program including findings from the annual
reviews described in paragraph (4)(A).
``(i) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated
to carry out this section such sums as may be necessary for
fiscal year 2010 and for each succeeding fiscal year.
``(2) Availability.--Amounts appropriated pursuant to the
authorization of appropriations under paragraph (1) for the
fiscal year shall remain available until the end of the second
fiscal year following the fiscal year in which such amounts
were first appropriated.''.
SEC. 3. FEDERAL AGENCY COORDINATION.
(a) Interagency Cooperation.--The head of each Federal department
or agency whose funding, regulations, or other policies impact workers
shall cooperate with the Secretary of Labor to--
(1) maintain up-to-date information on jobs, wages,
benefits, skills, and careers of workers impacted by the
actions of such agency or department;
(2) develop and implement policies that would improve the
jobs and careers of workers impacted by the actions of such
agency or department; and
(3) report the department or agency's job creation and
economic development strategies to the Secretary.
(b) Alignment.--Notwithstanding any other provision of law, the
Secretary and the heads of other Federal departments or agencies shall
work together to align existing education and training programs with
the demonstrated needs of industry or sector partnerships, as defined
in section 174A(b) of the Workforce Investment Act. These collaborative
efforts shall include the following:
(1) Department of commerce.--The Secretary of Commerce
shall advise the Secretary of Labor of the Department of
Commerce's workforce and economic development strategies,
programs, and initiatives.
(2) Justice department.--The Attorney General shall--
(A) align federally funded programs offering
training for inmates with industry clusters (as defined
in section 174A(b) of the Workforce Investment Act) and
high-priority occupations, and annually review these
training programs to assure that the training programs
prepare individuals for high-priority occupations; and
(B) align federally funded reentry programs to take
advantage of information and career opportunities
provided by industry and sector partnerships.
(3) Department of education.--The Secretary of Education
shall--
(A) develop and support career ladders for high-
priority occupations critical to targeted industry
clusters served by a grant under section 174A of the
Workforce Investment Act;
(B) develop and support innovative programs to
address literacy (including English as a second
language) and numeracy shortcomings, especially in
those occupations critical to such targeted industry
clusters;
(C) develop and support programs and strategies to
reduce barriers to adult education;
(D) develop and support career education
initiatives in middle and high schools; and
(E) support initiatives to develop industry-
recognized credentials and new credit-bearing programs
in public and private postsecondary educational
institutions, especially in occupations critical to
such targeted industry clusters.
(4) Department of health and human services.--The Secretary
of Health and Human Services shall--
(A) develop and support innovative programs that
connect qualified individuals receiving assistance
under the State temporary assistance for needy families
program funded under part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.) with employment
opportunities in the targeted industry clusters served
by a grant under section 174A of the Workforce
Investment Act;
(B) develop and support strategies to prepare
individuals receiving assistance under the State
temporary assistance for needy families programs funded
under part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.) for success in postsecondary
education and training programs; and
(C) develop and support career education
initiatives that provide such individuals with
information to guide the clients' education and
training plans.
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