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 173A the following:

173B.

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 in a targeted industry cluster, in order to encourage industry growth and competitiveness and to improve worker training, retention, and advancement in targeted industry clusters. The activities carried out by the partnerships may include the development of— (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)skill standards, career ladders, job redefinitions, employer practices, and shared training and support capacities for the targeted industry cluster 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 entities, education and training 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 shared goals and human resources needs of a targeted industry cluster and that includes, at the appropriate stage of development of the partnership— (i)representatives (including workers) of multiple firms or employers in a targeted industry cluster, including small- and medium-sized employers when practicable; (ii)1 or more representatives of a recognized State labor organization or central labor council, or other labor representatives as determined appropriate by the Secretary; (iii)1 or more representatives of a local board; (iv)1 or more representatives of a postsecondary educational institution or other training provider; and (v)1 or more representatives of a State workforce agency or other entity 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)business or trade associations; (v)official economic development organizations; (vi)community-based organizations; (vii)philanthropic 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)significant current or potential economic impact in a local or regional area; (B)immediate workforce development needs; and (C)documented opportunities for career advancement. (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 subparagraph (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), the Federal share of an implementation grant under this section shall be— (I)90 percent of the costs of the activities described in subsection (f), 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. (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 growth 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, local 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. (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 of the area surrounding the targeted industry cluster. (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 shared training needs of multiple businesses, especially skill gaps critical to competitiveness and innovation in the targeted industry cluster; (iii)facilitating economies of scale by aggregating training and education needs of multiple employers in the targeted industry cluster; (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 carrying out the State program under the Wagner-Peyser Act (29 U.S.C. 49 et seq.), including staff of the agency that provide services under such Act, 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, registered 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)(2), to careers; (vii)helping companies in the targeted industry cluster identify, and work together to address, common organizational and human resources challenges, such as— (I)recruiting new workers; (II)developing and 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, or 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 benchmarks, 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 (c)(4)(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— (i)State and local workforce investment activities, including the one-stop delivery system; (ii)adult secondary education, career and technical education, and postsecondary education; and (iii)economic development 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 for the duration of the grant, 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 paragraph (1)(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 (i) 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)

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. (4)

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 with disabilities; (FF)are veterans; (GG)are individuals who have completed a sentence for a criminal offense; and (HH)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. (5)

Report

Not later than 18 months after the date of enactment of the Strengthening Employment Clusters to Organize Regional Success Act of 2009, and annually thereafter, 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.