1.This Act may be cited as the
Strengthening Employment Clusters to
Organize Regional Success Act of 2011
or the
SECTORS Act of
2011
.
2.Industry or sector
partnership grant
(a)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 171 the following:
171A.Industry or
sector partnership grant program
(a)It
is the purpose of this section 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)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)In
this section:
(1)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-sufficiencyThe 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)The term eligible entity means—
(A)an industry or
sector partnership; or
(B)an eligible State
agency.
(4)The term eligible State agency means a State
agency designated by the Governor of the State in which the State agency is
located for the purposes of the grant program under this section.
(5)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 or is in the
process of developing a documented career ladder; and
(E)has a significant impact on a region’s
economic development strategy.
(6)The term industry cluster means a
concentration of interconnected businesses, suppliers, research and development
entities, service providers, and associated institutions in a particular field
that are linked by common workforce needs.
(7)Industry or
sector partnershipThe term industry or sector
partnership means a workforce collaborative that is described as
follows:
(A)
(i)An industry or sector partnership is a workforce
collaborative that organizes key stakeholders in a targeted industry cluster
into a working group that focuses on the workforce needs of the targeted
industry cluster and includes, at the appropriate stage of development of the
partnership—
(I)representatives of
multiple firms or employers in the targeted industry cluster, including small-
and medium-sized employers when practicable;
(II)one or more representatives of State labor
organizations, central labor coalitions, or other labor organizations, except
in instances where no labor representation exists;
(III)one or more
representatives of local boards;
(IV)one or more
representatives of postsecondary educational institutions or other training
providers; and
(V)one or more
representatives of State workforce agencies or other entities providing
employment services.
(ii)Diverse and
distinct representationNo individual may serve as a member in an
industry or sector partnership, as defined in this paragraph, for more than one
of the required categories described in subclauses (I) through (V) of clause
(i).
(B)An industry or sector
partnership 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)The
term industry-recognized, used with respect to a credential, means
a credential that—
(A)is sought or
accepted by businesses within the industry or sector involved as a recognized,
preferred, or required credential for recruitment, screening, or hiring
purposes; and
(B)is endorsed by a
nationally recognized trade association or organization representing a
significant part of the industry or sector, where appropriate.
(9)The term nationally portable, used with
respect to a credential, means a credential that is sought or accepted by
businesses within the industry sector involved, across multiple States, as a
recognized, preferred, or required credential for recruitment, screening, or
hiring purposes.
(10)Targeted
industry clusterThe term targeted industry cluster
means an industry cluster that has—
(A)economic impact in a local or regional
area, such as advanced manufacturing, clean energy technology, and health
care;
(B)immediate workforce development needs, such
as advanced manufacturing, clean energy, technology, and health care;
and
(C)documented career
opportunities.
(c)
(1)From amounts appropriated to carry out this section, the
Secretary shall award, on a competitive basis, grants described in paragraph
(3) to eligible entities to enable the eligible entities to plan and implement,
respectively, the eligible entities’ strategic objectives in accordance with
subsection (d)(2)(D).
(2)
(A)An implementation grant awarded under paragraph (3)(A) may
not exceed a total of $2,500,000 for a 3-year period.
(B)A renewal grant awarded under paragraph (3)(C) may not
exceed a total of $1,500,000 for a 3-year period.
(3)Implementation
and renewal grants
(A)The Secretary may award an implementation grant under
this section to an eligible entity that has established, or is in the process
of establishing, an industry or sector partnership.
(B)An
implementation grant shall be for a duration of not more than 3 years, and may
be renewed in accordance with subparagraph (C).
(C)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; and
(ii)require assurances that the eligible entity
will leverage, in accordance with subparagraph (D)(ii), each year of the grant
period, additional funding sources for the non-Federal share of the grant which
shall—
(I)be in an amount
greater than—
- (aa)the
non-Federal share requirement described in subparagraph (D)(i)(III); and
- (bb)for
the second and third year of the grant period, the non-Federal share amount the
eligible entity provided for the preceding year of the grant; and
(II)include at least a 50 percent cash match
from the State, the industry cluster, or some combination thereof, of the
eligible entity.
(D)Federal and
non-Federal share
(i)Except as provided in subparagraph (C)(ii) and clause
(iii), the Federal share of a 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)The
non-Federal share of a grant under this section may be in cash or in-kind, and
may come from State, local, philanthropic, private, or other sources.
(iii)The Secretary may require the Federal share
of a 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.
(4)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.
(5)Use of grant
funds during grant periodsAn eligible entity receiving grant
funds under a grant under this section shall expend grant funds or obligate
grant funds to be expended by the last day of the grant period.
(d)
(1)Identification
of a targeted industry clusterIn 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, including estimation of jobs created or preserved;
(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)Employment
base.
(iii)Wages and
benefits.
(iv)Demonstrated
importance of the targeted industry cluster to the area’s economy.
(v)Workforce
development needs.
(2)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 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 multiple businesses and
employers, labor organizations, local 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, apprenticeship
programs, and all other training programs authorized under this Act, align
curricula, entrance requirements, and programs to industry demand and
nationally portable, industry-recognized credentials (or, if not available for
the targeted industry, other credentials, as determined appropriate by the
Secretary), 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 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)retraining
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 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 nationally portable, industry-recognized credentials or, if not available,
other credentials, related to the targeted industry cluster that the eligible
entity proposes to support, develop, or use as a performance measure, in order
to carry out the strategic objectives described in subparagraph (D).
(F)A description of
the manner in which the eligible entity intends to make sustainable progress
toward the strategic objectives.
(G)Performance measures for measuring progress
toward the strategic objectives. Such performance measures—
(i)may consider the
benefits provided by the grant activities funded under this section for workers
employed in the targeted industry cluster, disaggregated by gender and race,
such as—
(I)the number of
workers receiving nationally portable, industry-recognized credentials (or, if
not available for the targeted industry, other credentials) described in the
application under subparagraph (E);
(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)may consider the benefits provided by the
grant activities funded under this section for firms and industries in the
targeted industry cluster, such as—
(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 nationally 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)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.
(H)A timeline for
achieving progress toward the strategic objectives.
(I)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)(3)(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)economic
development funding;
(iv)employer
contributions to training initiatives; or
(v)providing
employees with employee release time for such training or supportive
services.
(e)
(1)The Secretary shall award grants under this section
in a manner to ensure geographic diversity.
(2)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)
(1)An eligible entity
receiving a grant under this section shall carry out the activities necessary
to meet the strategic objectives, including planning activities if applicable,
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)Planning activities may only be carried out by an
eligible entity receiving an implementation grant under this section during the
first year of the grant period with not more than $250,000 of the grant
funds.
(3)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 5 percent of the grant amount.
(g)Evaluation and
progress reports
(1)Annual activity
report and evaluationNot 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)(G).
(2)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)The Secretary may retain not more than 10 percent of the
funds appropriated to carry out this section for each fiscal year to administer
this section.
(2)Technical
assistance and oversightThe Secretary shall provide technical
assistance and oversight to assist the 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.
The Secretary may award a grant or contract to one or more national or State
organizations to provide technical assistance to foster the planning,
formation, and implementation of industry cluster partnerships.
(3)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
informationThe 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;
(VIII)other areas
where industry or sector partnerships can assist each other; and
(IX)alignment of
curricula to nationally portable, industry-recognized credentials in the
sectors where they are available or, if not available for the sector, other
credentials, as described in the application under subsection (d)(2)(E);
(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)Not
later than 18 months after the date of enactment of the
Strengthening Employment Clusters to Organize
Regional Success Act of 2011, and on an annual basis 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)Nothing in this section shall be construed to permit
the reporting or sharing of personally identifiable information collected or
made available under this
section.
.
(b)The table of
contents in section 1(b) of the Workforce Investment Act of 1998
(20 U.S.C.
9201 note) is amended by inserting after the item relating to
section 171 the following:
171A. Industry or sector partnership grant
program.
.