Short title

This Act may be cited as the

Workforce Innovation for New Jobs and Applied Education Act

or the

WIN Jobs and Applied Education Act

Innovation in Investment pilot program

(a)

In general

Subtitle D of title I of the Workforce Investment Act of 1998 is amended by inserting after section 173A (29 U.S.C. 2918a) the following:

173B.

Innovation in Investment pilot program

(a)

Establishment

The Secretary shall establish and carry out a pilot program, to be known as the Innovation in Investment pilot program, through which the Secretary shall make grants as described in subsection (b), in order to facilitate the provision of workforce development activities through public-private partnerships. (b)

Grants to eligible consortia

(1)

In general

In carrying out the national program, the Secretary shall make grants on a competitive basis to eligible consortia in covered States to enable the consortia to establish and support State Innovation in Investment pilot programs. (2)

Number and renewability of grants

The Secretary shall make the grants to not more than 5 consortia and in amounts of not more than $3,500,000 per grant. The Secretary shall not renew a grant made to a consortium under this subsection. (c)

Eligible consortia

(1)

Eligible consortium

(A)

In general

To be eligible to receive a grant under this section, a consortium shall include— (i)an eligible institution, which shall serve as the lead applicant for the grant; (ii)1 or more businesses that are representative of a local area in which the training will be provided; (iii)1 or more representatives of the State or local workforce investment system; and (iv)1 or more secondary schools (as defined in section 9101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801)), area career and technical education schools (as defined in section 3 of the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2302)), or institutions of higher education (as defined in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)) that provide a 2-year program described in section 101(a)(3) of such Act (20 U.S.C. 1001(a)(3)). (B)

Multiple representatives

To the maximum extent practicable, the eligible institution shall ensure that the eligible consortium includes more than one representative— (i)of entities described in subparagraph (A)(ii); (ii)of entities described in subparagraph (A)(iii); and (iii)of entities described in subparagraph (A)(iv). (2)

Community college

In this section the term community college means a community college, as defined in section 3301 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7011). (3)

Covered States

(A)

In general

In this section, the term covered State means a State— (i)for which the percentage of individuals in the State in households with household incomes at or below the poverty line, is greater than the percentage of individuals in the United States in such households, as determined on the basis of data from the Bureau of the Census; (ii)in which the percentage of the adult population with a baccalaureate degree is not more than 25 percent; and (iii)that meets such other measures as the Secretary may determine to be appropriate. (B)

Definition

In this paragraph, the term poverty line has the meaning given the term in section 673 of the Community Services Block Grants Act (42 U.S.C. 9902). (4)

Eligible institution

In this section, the term eligible institution means— (A)a local board, in partnership with 1 or more community colleges, at which training programs will occur under a grant described in subsection (b); (B)a community college district, established by a State as a separate entity or governed by a community education board; (C)a State community college system; or (D)a community college. (d)

Applications

In order for a consortium to be eligible to receive a grant under this section, an eligible institution shall submit an application to the Secretary on behalf of the consortium at such time, in such manner, and containing such information as the Secretary shall require, including— (1)a description of the training program to be carried out; (2)a description of clear, relevant, and practical objectives for the program, including how the program will ensure integration of Federal, State, and local activities, train workers for high-wage and high-skill employment, maximize the return on public investment in the program, involve the private sector, and integrate external learning opportunities with classroom education; (3)a description of how the consortium will facilitate development of a 21st century workforce in the State in which the consortium operates; and (4)(A)standards, agreed on by all members of the consortium, for data collection on and evaluation of the performance of the program and participants in the program; and (B)assurances that the consortium will participate in evaluations of that performance by the Secretary. (e)

Use of funds

(1)

Training program

A consortium that receives a grant under this section shall use the funds made available under the grant— (A)to support the development or expansion of a training program that is designed to enable participants to obtain employment (including pre-employment training, career counseling, or training that leads to skill certification, as determined by the Secretary); (B)to provide educational assistance described in paragraph (3)(B) through an eligible institution in the consortium for such a program; and (C)to otherwise support participation in— (i)internship or cooperative activities approved by the consortium and described in an application submitted under subsection (d); or (ii)a registered apprenticeship program carried out under the Act of August 16, 1937 (commonly known as the

National Apprenticeship Act

; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.). (2)

Participants

The consortium shall provide training to unemployed individuals, or to postsecondary students who are not seeking a baccalaureate degree. (3)

Eligible institutions

An eligible institution that is part of the consortium shall provide, for a participant whose participation in the program leads to a degree, or to the extent practicable, to industry or professional certification or licensure— (A)course credit for the training provided through such program; and (B)reimbursement, in the form of educational assistance within the meaning of section 127(c)(1) of the Internal Revenue Code of 1986, for part or all of the expenses covered by subparagraph (A) of that section, at the institution and related to the program. (f)

Limit on administrative costs

Not more than 10 percent of the funds made available through grants received under this section shall be used to pay for administrative costs. (g)

Assessment and reports

(1)

Assessment

The eligible institution in an eligible consortium that receives a grant under this section for a program shall carry out data collection concerning and assessment of the program. (2)

Reports

The eligible institution shall submit interim and final reports to the State in which the consortium operates, to the Secretary of Labor, and to the appropriate committees of Congress, containing a summary of the data and the results of the assessment. The reports shall include a description of the program, the stated objectives of the program, information on best practices and lessons learned from the program, information that describes how the businesses in the consortium helped to develop the program and curriculum for the program, information that describes the education gained by and employment outcomes of participants, recommendations regarding incentives for business and educational institutions to participate in similar programs and to carry out programs that complement and incorporate successful programs and resources to the extent practicable, and other relevant data that may be required by the Secretary of Labor. The eligible institution shall submit the interim report not later than 3 years after the date on which the grant is made, and the final report not later than 18 months after the end of the program.

(b)

Authorization of appropriations

Section 174 of the Workforce Investment Act of 1998 (29 U.S.C. 2919) is amended by adding at the end the following:

(d)

Authorization of appropriations

There are authorized to be appropriated to carry out section 173B such sums as may be necessary for fiscal year 2012 and each subsequent fiscal year.

Registered apprenticeship programs

(a)

Programs

The Act of August 16, 1937 (commonly known as the

National Apprenticeship Act

; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.) is amended by inserting after section 3 the following:

3A.

Registered apprenticeship programs

(a)

Definition

In this section: (1)

Institution of higher education

The term institution of higher education has the meaning given the term in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)). (2)

National apprenticeship program

The term national apprenticeship program means the collective program carried out under this Act. (3)

Registered apprenticeship program

The term registered apprenticeship program means a program registered under this Act. (b)

Dissemination of information

(1)

Dissemination by Secretary of Labor

The Secretary of Labor, acting through the Administrator of the Office of Apprenticeship of the Department of Labor, shall disseminate information on the national apprenticeship program (referred to in this paragraph as apprenticeship information) widely and publicly, and make every reasonable effort to increase awareness of that program. The information disseminated shall contain, at a minimum, information on regionally available registered apprenticeship programs, requirements and benefits of each registered apprenticeship program, and the application and selection process for each such program. (2)

Dissemination by Secretary of Education

(A)

Electronic information

When disseminating any electronic information designed to help students prepare for graduation from secondary school, the Secretary of Education shall include apprenticeship information. (B)

Print information

The Secretary of Education shall disseminate apprenticeship information to State educational agencies, local educational agencies, institutions of higher education, and relevant State agencies. The agencies and institutions described in this subparagraph shall, as a condition of receiving funding directly or indirectly from the Department of Education, distribute the information to students preparing for graduation from a secondary school or such an institution. (c)

Expansion pilot program

(1)

In general

The Secretary of Labor, acting through the Administrator of the Office of Apprenticeship, and in consultation with the Secretary of Education (referred to in this subsection as the Secretaries) shall establish a pilot program to expand the national apprenticeship program, by evaluating additional programs, in additional sectors, for approval as registered apprenticeship programs. The pilot program shall be designed to expand the sectors with registered apprenticeship programs, to include new and evolving sectors, such as green technology, engineering, communications, health care, information technology, energy, and disaster and emergency preparedness. The Secretary of Labor shall carry out the pilot program for a period of not less than 5 years. (2)

Evaluations

The Secretary of Labor shall establish and use clear, consistent, and relevant measures for evaluation of the quality and effectiveness of programs proposed for registration under the pilot program. The measures shall include measures for evaluating the quality and effectiveness of the curriculum and training associated with a proposed program, and the performance of the program with respect to performance standards, completion rates for program participants (for the program and related education), number of participants entering employment, credentials and certifications granted, and the transferability of the credentials and certifications. (3)

Study and reports

(A)

Study

In addition to collecting data in connection with the evaluations, the Secretary of Labor shall study the program. In conducting the study, the Secretary of Labor shall collect data to determine the extent to which the programs registered under the pilot program efficiently and effectively prepared participants for employment, and shall examine how to encourage more individuals, partners, and sponsors to participate in the national apprenticeship program. (B)

Reports

Not later than 3 years after the date of the establishment of the pilot program, and not later than 18 months after the end of the pilot program, the Secretary of Labor shall submit a report to Congress containing the results of the study. (d)

Creditable programs

(1)

In general

The Secretary of Labor or the Secretary of Education, as appropriate (referred to in this subsection as the appropriate Secretary) may approve an eligible program as a creditable program, with respect to a tax credit under section 45S of the Internal Revenue Code of 1986. (2)

Eligible programs

In this subsection: (A)

Cooperative program

The term cooperative program means an existing or new program that— (i)is carried out by a partnership including at least 1 business, and 1 institution of higher education; (ii)meets such skills and education standards as the appropriate Secretary shall establish for such a program; and (iii)(I)provides training that leads to industry or professional certification or licensure, as determined by the appropriate Secretary; or (II)is similar to a registered apprenticeship program. (B)

Covered registered apprenticeship program

The term covered registered apprenticeship program means a registered apprenticeship program that is carried out by a partnership including a business and an institution of higher education. (C)

Eligible program

The term eligible program means a covered registered apprenticeship program or a cooperative program. (3)

Approval levels

(A)

Level 1 creditable program

To be approved as a level 1 creditable program— (i)an eligible program shall employ participants who— (I)attend the institution of higher education that is part of the partnership, which shall be a local institution of higher education and shall provide course credit for the training provided through such program; and (II)work not less than 20 hours per week for the business in the partnership; and (ii)the Secretary of Labor and the Governor of the State in which the eligible program operates shall certify that the specific skills and education provided through the program are needed in the local area, as defined in section 101 of the Workforce Investment Act of 1998 (29 U.S.C. 2801), in which the program operates, and that need is not being fulfilled by other training programs. (B)

Level 2 creditable program

To be approved as a level 2 creditable program— (i)an eligible program shall meet the requirements of subparagraph (A)(i); (ii)the Secretary of Labor and the Governor of the State in which the eligible program operates shall make the certifications described in subparagraph (A)(ii) for the program; and (iii)the institution of higher education in the partnership carrying out the eligible program shall meet the requirements of subparagraph (A)(i)(I) and provide the program as a 2-year program described in section 101(a)(3) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)(3)). (4)

Educational assistance

(A)

Institutions in partnerships

To the extent practicable, an institution of higher education in a partnership carrying out a creditable program shall provide educational assistance to participants in the program to reduce or pay for educational costs at the institution. (B)

Standards for significant educational assistance

The Secretary of Education shall issue standards specifying the percentage, of such a participant's educational costs at an institution of higher education for a creditable program, that a business in the partnership carrying out the program shall provide in order to be eligible to receive a tax credit under section 45S of the Internal Revenue Code of 1986 for educational assistance. A business that provides less than that percentage shall not be eligible to receive the tax credit under that section for any educational assistance to that participant.

(b)

Tax credit for apprenticeship program expenses of qualified employers

(1)

In general

Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

45S.

Credit for apprenticeship program expenses of qualified employers

(a)

General rule

For purposes of section 38, in the case of a qualified employer, the apprenticeship program expenses credit determined under this section for any taxable year with respect to each qualified employee is an amount equal to the sum of— (1)the taxes paid by such employer under section 3111 or 3221 with respect to such employee for such taxable year, and (2)the amount of any educational assistance (within the meaning of section 127(c)(1)) paid or incurred by such employer with respect to such employee for such taxable year, to the extent such amount exceeds the percentage established by the Secretary of Education under section 3A(d)(4)(C) of the Act of August 16, 1937 (commonly known as the

National Apprenticeship Act

; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.). (b)

Special rules

(1)

Limitation to 3 years of expenses

The expenses described in paragraphs (1) and (2) of subsection (a) shall be taken into account for not more than 3 years with respect to any qualified employee. (2)

Increased credit for certain programs

(A)

Exception for certain programs

In the case of a qualified employee who is participating in a level 2 creditable program described in subparagraph (B) of section 3A(d)(3) of the Act of August 16, 1937 (commonly known as the

National Apprenticeship Act

; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.), the amount of the credit determined (without regard to this subparagraph and subparagraph (B)) under subsection (a) shall be multiplied by 2. (B)

Exception for critical need areas

In the case of a qualified employee who resides in a local area that is certified by the Secretary of Labor (according to regulations prescribed by such Secretary) as having critical employment needs based on educational, economic, and population factors, the amount of the credit determined (without regard to this subparagraph and subparagraph (A)) under subsection (a) shall be multiplied by 3. Subparagraph (A) shall not apply with respect to a qualified employee to whom this subparagraph applies. (c)

Qualified employer

(1)

In general

For purposes of this section, the term qualified employer means an employer that, during the taxable year for which the credit under this section is determined, is participating in a creditable program described in subparagraph (A) or (B) of section 3A(d)(3) of the Act of August 16, 1937 (commonly known as the

National Apprenticeship Act

; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.). (2)

Partial taxable years

If an employer does not participate in such a creditable program for the employer's entire taxable year, then only expenses described in paragraphs (1) and (2) of subsection (a) with respect to the portion of the taxable year during which such employer participates in such a program shall be taken into account under subsection (a). (d)

Qualified employee

For purposes of this section— (1)

In general

The term qualified employee means, with respect to any taxable year, an employee of a qualified employer who— (A)during such taxable year is enrolled in a creditable program described in subsection (c)(1) at the institution of higher education (within the meaning of section 101(a) of the Higher Education Act of 1965) which is part of the partnership with the qualified employer and which is a local institution of higher education, (B)is eligible for course credit for the training provided through such program, (C)works not less than 20 hours per week as an employee of the qualified employer as part of such program, and (D)is still employed as part of such program by the qualified employer on the date that is 1 year after the date on which the employee begins participation in such program with the employer. (2)

Recapture in case of termination of employment

In the case of an employee whose employment as part of such creditable program is terminated by the qualified employer before the date that is 1 year after the date on which the employee begins participation in such program with the employer— (A)no expenses with respect to such employee shall be taken into account under subsection (a) for the taxable year in which such employment is terminated, and (B)the tax under this chapter for the taxable year in which such employment is terminated shall be increased by the aggregate credits (if any) allowed under section 38(a) for prior taxable years by reason of this section with respect to such employee. (e)

Denial of double benefit

No deduction shall be allowed under this chapter for any amount taken into account in determining the credit under this section. (f)

Election not To claim credit

This section shall not apply to a taxpayer for any taxable year if such taxpayer elects to have this section not apply for such taxable year.

(2)

Credit to be part of general business credit

Section 38(b) of the Internal Revenue Code of 1986 is amended by striking plus at the end of paragraph (35), by striking the period at the end of paragraph (36) and inserting , plus, and by adding at the end the following new paragraph:

(37)the apprenticeship program expenses credit determined under section 45S(a).

(3)

Clerical amendment

The table of sections for subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:

Sec. 45S. Credit for apprenticeship program expenses of qualified employers.

(4)

Effective date

The amendments made by this subsection shall apply to taxes paid under section 3111 or 3221 of the Internal Revenue Code of 1986, and expenses paid or incurred, after the date of the enactment of this Act.

State Workforce Education and Training Advisory Committees

Section 134(a)(2) of the Workforce Investment Act of 1998 (29 U.S.C. 2864(a)(2)) is amended— (1)in subparagraph (B)— (A)in clause (v), by striking and at the end; (B)in clause (vi), by striking the period and inserting ; and; and (C)by adding at the end the following:

(vii)to the extent practicable, establishing or designating, and supporting, a Workforce Education and Training Advisory Committee described in subparagraph (C).

; and

(2)by adding at the end the following:

(C)

Advisory Committee

(i)

In general

The State shall designate a State agency that shall establish or designate, and support, using funds described in subparagraph (B), a Workforce Education and Training Advisory Committee (referred to in this subparagraph as the Advisory Committee) for the State. (ii)

Composition

The Advisory Committee shall consist of members appointed by the Governor, including— (I)representatives of State agencies; (II)representatives of local agencies; (III)representatives of institutions of higher education, as defined in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)); (IV)representatives of businesses; (V)representatives of State boards and local boards; (VI)representatives of community-based organizations; and (VII)representatives of other relevant stakeholders. (iii)

Chairperson

The representative of the designated State agency shall serve as the Chairperson of the Advisory Committee. (iv)

General duties

The Advisory Committee shall— (I)consult with the Secretary of Education and the Secretary of Labor regarding workforce development in the State; and (II)develop and recommend a comprehensive strategy for the State for education, employment and training activities, and other workforce development activities. (v)

Periodic responsibilities

Periodically, the Advisory Committee shall— (I)identify and evaluate initiatives in the State involving education, employment and training activities, or other workforce development activities, and related strategic partnerships; (II)issue recommendations encouraging the adoption of nationally recognized or State-recognized career readiness certification programs; (III)assess the level of integration and coordination of Federal, State, and local workforce development initiatives within the State; (IV)assess the comprehensive strategy described in clause (iv)(II) that is adopted by the State; (V)compile and disseminate information on best practices for workforce development activities, obtained from entities represented on the Advisory Committee; and (VI)make recommendations on workforce development activities to Federal, State, and local policymakers. (vi)

Reports

Not later than 2 years after the initial appointment of all members of the Advisory Committee, and every 2 years thereafter, the Advisory Committee shall prepare and submit to the Secretary of Education and the Secretary of Labor a report containing the results of the evaluation and assessments, the information, described in clause (v), and the recommendations described in clauses (iv) and (v).