[Congressional Record Volume 156, Number 106 (Monday, July 19, 2010)]
[House]
[Pages H5686-H5690]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 STRENGTHENING EMPLOYMENT CLUSTERS TO ORGANIZE REGIONAL SUCCESS ACT OF 
                                  2010

  Mr. LOEBSACK. Madam Speaker, I move to suspend the rules and pass the 
bill (H.R. 1855) to promote industry growth and competitiveness and to 
improve worker training, retention, and advancement, and for other 
purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 1855

       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 2010'' or the 
     ``SECTORS Act of 2010''.

     SEC. 2. INDUSTRY OR SECTOR PARTNERSHIP GRANT.

       (a) Amendment.--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:

     ``SEC. 171A. INDUSTRY OR SECTOR PARTNERSHIP GRANT PROGRAM.

       ``(a) Purpose.--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) 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 in which the State agency is located 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 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) 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 
     is described as follows:
       ``(A) Required members.--
       ``(i) In general.--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 that 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) 1 or more representatives of State labor 
     organizations, central labor coalitions, or other labor 
     organizations, except instances where no labor representation 
     exists;
       ``(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.

       ``(ii) Diverse and distinct representation.--No individual 
     may serve as a member in an industry or sector partnership 
     for more than 1 of the required categories described in 
     subclauses (I) through (V) of clause (i).
       ``(B) Authorized members.--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) Targeted industry cluster.--The 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

[[Page H5687]]

       ``(C) documented career opportunities.
       ``(c) Grants Authorized.--
       ``(1) In general.--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) Maximum amount.--
       ``(A) Implementation grants.--An implementation grant 
     awarded under paragraph (3)(A) may not exceed a total of 
     $2,500,000 for a 3-year period.
       ``(B) Renewal grants.--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) In general.--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) 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; 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) Federal share.--Except as provided in subparagraph 
     (C)(ii) and clause (iii) of this subparagraph, 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) Non-federal.--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) Exception.--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) 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.
       ``(5) Use of grant funds during grant periods.--An 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) 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, 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) 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 a description of the expected 
     participation and responsibilities of each of the mandatory 
     partners described in subsection (b)(7)(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, 
     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 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 manner in which the eligible 
     entity intends to make sustainable progress toward the 
     strategic objectives described in subparagraph (D).
       ``(F) 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 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

[[Page H5688]]

       ``(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 portable, industry-
     recognized credentials, including national 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.

       ``(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)(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) 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, 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.--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 or 10 percent, whichever 
     is greater of the grant funds.
       ``(3) 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 5 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 2 percent of the funds appropriated to carry out 
     this section 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 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 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) Rule of Construction.--Nothing in this section shall 
     be construed to permit--
       ``(1) the reporting or sharing of personally identifiable 
     information collected or made available under this section; 
     and
       ``(2) the Secretary to share with, or report to, any 
     person, any personally identifiable information collected or 
     made available under this section.''.
       (b) Conforming Amendment.--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.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Iowa (Mr. Loebsack) and the gentleman from Kentucky (Mr. Guthrie) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Iowa.


                             General Leave

  Mr. LOEBSACK. Madam Speaker, I request 5 legislative days during 
which Members may revise and extend and insert extraneous material on 
H.R. 1855 into the Record.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Iowa?
  There was no objection.
  Mr. LOEBSACK. Madam Speaker, I yield myself such time as I may 
consume.

[[Page H5689]]

  I rise today in strong support of H.R. 1855, the Strengthening 
Employment Clusters to Organize Regional Success Act, or the SECTORS 
Act, legislation that I introduced in the House along with my colleague 
from the other side of the aisle, Congressman Todd Platts.
  I want to thank Congressman Platts for his work on this legislation 
and for recognizing the worthiness of this effort. The SECTORS Act was 
introduced as bipartisan legislation, and I am pleased that we have 
gained additional bipartisan cosponsors as well.
  I also want to thank Chairman Miller and Ranking Member Kline of the 
Education and Labor Committee, as well as the committee staff, for 
working with me to move this legislation to the floor of the House.
  No matter what party you are from, I think we can all agree that we 
should be supportive of innovative and collaborative strategies that 
increase the success of American business and improve the employment 
outlook of our workforce. As our country continues to recover from the 
economic downturn, we should work toward long-term improvements in our 
workforce training and resource systems and look at how we can better 
utilize the infrastructure that is already in place. Given our current 
economic situation and the fact that we have seen a steep decrease in 
Federal investment in employment and training over the past 20 years, 
this effort is all the more needed.
  Recently, The New York Times ran a story detailing a significant 
mismatch between the skilled workers needed for many industries and the 
skill sets of many of the currently unemployed. The story also 
referenced a survey done last year of 779 industrial companies by the 
National Association of Manufacturers, the Manufacturing Institute, and 
Deloitte which found that 32 percent of companies reported ``moderate 
to serious'' skills shortages. Sixty-three percent of life science 
companies and 45 percent of energy firms cited such shortages.
  Through the SECTORS Act, we are taking serious action to help address 
these issues and ensure that we build things in America again. In fact, 
just yesterday, The New York Times had another story entitled ``After 
Training, Still Scrambling for Employment'' that detailed the struggles 
our workforce is having finding training to pursue careers in existing 
and growing fields. It also highlighted some successful existing 
efforts with sector partnership-based approaches.
  Some of our industries that are poised for continued growth and 
expansion and would be strong contributors to economic recovery, such 
as advanced manufacturing, clean energy technology, and health care and 
information technology, are struggling. By the nature of the problem, 
this means our Nation's workforce is continuing to have trouble finding 
work in these fields because of the mismatch of skill sets.
  The SECTORS Act addresses these issues by facilitating, nationwide, 
one of the key elements of successful State and local workforce 
development efforts: sector or industry partnerships. Sector 
partnerships organize stakeholders connected to a crucial industry, 
like manufacturing, for example, and will include multiple firms and 
businesses, employees, unions, education and training providers, and 
local workforce and education systems, among others, to develop and 
implement plans for growing, or saving, that industry.
  There is a particular focus on building new workforce pipelines where 
skilled worker shortages exist and improving the ways existing workers 
are utilized, retrained, and paid.
  The SECTORS Act will put in place partnerships that lead to alignment 
of educational institutions, training institutions, apprenticeship 
programs, and all other training programs to meet industry demand, 
particularly for higher skill, high-priority occupations. Regularly 
convening industry players on an ongoing basis to plan and implement 
strategies to save or expand their industry will help to strengthen 
connections and aggregate training and education needs of multiple 
employers.
  Sector partnerships will also help businesses recruit new workers, 
retrain dislocated workers, develop and strengthen career ladders 
across companies, and improve overall job quality. These types of 
strategies have been highly successful regionally, including in my 
State of Iowa.
  The National Skills Coalition, which has been a strong advocate for 
these strategies for some time, has organized a broad-based, nationwide 
coalition of workforce and vocational organizations, manufacturing 
associations, colleges and universities, chambers of commerce, and 
training and human services organizations that support this legislation 
and these partnerships.
  The SECTORS Act is about helping industries access the trained 
employees they need to expand and thrive, helping employees access the 
education and training they require to be competitive in the 21st 
century economy and find quality jobs, and helping workforce 
development and education providers train employees in the demand of 
today's industries. In so doing, this bill will help to ensure that our 
Nation and the American workforce continue to stand at the forefront of 
the 21st century economy.
  I would also like to thank Representative Miller, chairman of the 
Education and Labor Committee, for his support of and work on this 
bill.
  I urge support for this bipartisan legislation, Madam Speaker, which 
also has bipartisan support in the Senate.
  I reserve the balance of my time.
  Mr. GUTHRIE. Madam Speaker, I yield myself such time as I may 
consume.
  Madam Speaker, I rise today in support of H.R. 1855, the 
Strengthening Employment Clusters to Organize Regional Success, or the 
SECTORS, Act, and I appreciate Mr. Loebsack and the bipartisan way in 
which this is going to move forward.
  H.R. 1855 creates new grants within the Workforce Investment Act to 
help create or increase targeted industry capacity and partnerships 
within specific regions. This is an idea that is already being done in 
some places across the country with success. For example, Philadelphia 
has created a regional program to train nurses for their hospitals and 
health care industry needs.
  I believe Federal policies should also encourage regional business 
development and improve worker training, retention, and advancement 
opportunities. That is why I strongly support not only this bill but 
strongly support the reauthorization of the Workforce Investment Act.

                              {time}  1450

  Madam Speaker, the Workforce Investment Act is 8 years overdue in its 
reauthorization, and I am disappointed that we are not engaging in a 
larger discussion of Workforce Investment Act reauthorization.
  The American people are facing a tremendous economic challenge and 
there has never been a more critical time to make sure our workforce 
has the opportunity to find new jobs or receive additional training. We 
need better systems of training and skills development to help move 
into new industries.
  I come from a small business manufacturing background, and I have 
seen firsthand that unemployed workers who receive additional training 
for new skills can obtain a higher-paying job which can radically 
transform their way of life. We cannot afford to approach the workforce 
and job needs of our country in a piecemeal way. The American people 
deserve a real, comprehensive job training bill.
  I, along with eight of my colleagues, introduced H.R. 4271, the 
Workforce Investment Improvement Act of 2009, to begin the process of 
reauthorization of WIA. But, unfortunately, my bill has not been taken 
up by the Education and Labor Committee.
  I do support this bill before us today, but I do believe it's a 
disservice to the American people not to have an updated, comprehensive 
workforce development bill, and I urge this Congress to take action on 
full authorization of WIA as soon as possible. I do urge my colleagues 
to support the bill before us, however.
  I yield back the balance of my time.
  Mr. LOEBSACK. Madam Speaker, in closing, I do want to thank the 
gentleman from Kentucky for his support and the Members from the other 
side of the aisle for supporting this bill. It has been a true 
bipartisan effort, and I really do appreciate that.
  I do want to say that according to a multiyear study conducted by 
public-private ventures, participants in SECTORS-based training 
programs earned

[[Page H5690]]

an average of 18.3 percent, or about $4,500, more than a control group 
over a 24-month period of study. In addition, participants in SECTORS 
programs were more likely to work in jobs with benefits, including 
health insurance and paid time off, and were more likely to find 
consistent work, about 1.3 additional months of employment, over the 2-
year period than the control group average.
  This legislation will put in place additional SECTORS partnerships, 
as I said before, between business, employees, and education and 
training providers that lead to collaborative planning, resource 
alignment, and training efforts for current and potential workers to 
improve our Nation's business manufacturing and industry outlook.
  It is supported by a broad-based nationwide coalition of workforce 
and vocational organizations, manufacturing associations, colleges and 
universities, chambers of commerce, and training and human services 
organizations nationwide, and it does have the dual benefits of helping 
businesses and employees, and it has strong bipartisan support in the 
House of Representatives.
  I urge support for this legislation.
  Mr. GEORGE MILLER of California. Madam Speaker, I rise today in 
support of H.R. 1855, the Strengthening Employment Clusters to Organize 
Regional Success or SECTORS Act, which promotes strategic approaches to 
addressing skills shortages.
  Sector strategies is an approach that brings employers in a certain 
industry together with education, labor, workforce, and other groups to 
identify and provide training that is tailored to meet the sector needs 
of that region's economy. The SECTORS Act would support existing 
industry partnerships or help leverage funding from employers, 
educators, labor, and the workforce system to adopt a sectors-based 
working partnership that comes together to identify economic trends and 
shared workforce issues and develop the tools required to meet the 
growing demand in that targeted industry.
  As some industries maintain signs of recovery, you would expect that 
employers would have an easy time filling their openings. In 
manufacturing, the June 2010 ISM Report on Business showed that 
economic activity in the sector grew for the 11th consecutive month. 
The manufacturing industry has added 136,000 jobs since December 2009. 
Yet many American companies, including manufacturers believe they 
cannot find workers with the qualifications needed for these jobs.
  A recent New York Times article highlighted a contract drug company 
in Ohio that needed to hire 100 workers. Despite reviewing 3,600 job 
applications, the company has only offered jobs to 47 people so far. In 
a July 2009 survey of employers, the Business Roundtable's Springboard 
Project found that more than 60 percent of those surveyed indicated 
that they were having difficulty finding qualified applicants to fill 
current vacancies, and almost half indicated that there was a gap 
between the skills of their current workforce and company requirements. 
In a survey of manufacturing organizations conducted by Deloitte, The 
Manufacturing Institute, and Oracle found that skill shortages persist, 
especially for the most profitable companies. Almost one-third of 
responding companies reported some level of shortages today, and over 
one-half reported shortages for skilled production workers. With the 
economy improving, companies are retooling the way they operate in 
order to remain competitive against their global rivals and in 
assessing its short and long-term talent needs, businesses are calling 
for higher-skilled workers.
  In the current economy, workers need a wide range of services and 
support to reenter and succeed in the labor market. Job training is one 
important part of that solution, particularly for workers who have 
experienced extended unemployment and need to rebuild their skills; 
dislocated workers who are moving into new industries as local and 
regional economies are revamped; or even incumbent workers who need to 
upgrade their skills as industries adopt new technologies, including 
green technology. It is critical that we ensure that workers have the 
right skills for today's labor market and that those skills help them 
move into jobs and careers. One of the best ways to do this is to 
ensure that federally funded training is developed in partnership with 
local and regional employers.
  The SECTORS Act will help businesses in growing industries plan for 
their talents needs while ensuring education and workforce provide the 
learning for workers to match the skills required by employers. By 
promoting sector strategies, employers can take control of the design 
and work in coordination with education and job training providers from 
the public and private sectors to develop strategies that will quickly 
train workers for waiting jobs, and develop long-term solutions to grow 
that industry as part of a community's economic recovery. Specifically, 
the SECTORS Act would establish a new Sector Partnership Grant program 
administered by DOL to provide designated funding and distinct 
performance measures for industry partnerships.
  SECTORS help both workers and local firms in the same industry, to 
help ensure that workers are getting the skills that employers need and 
the employers can find and hire the skilled workforce they need to 
compete and lead the world in the global economy. Federal investment 
that encourages best practices in the workforce development field, 
supports efforts already going on in communities around the country, 
and ensures that federal investments improve the skill of our nation's 
workforce, will efficiently and effectively support our nation's 
economic recovery.
  In addition, sector partnerships can have a positive impact on 
workers, especially those that are low-income. Public/Private Ventures 
found in their study of sector-based training those participants in the 
program earned an average of about $4,500 more than those not engaged 
in training sponsored by a sector partnership. More than 200 sector 
partnerships are active, comprising 23 industry sectors in 41 states. 
For example, Pennsylvania has nearly eighty partnerships serving more 
than six thousand firms across the Commonwealth, and more than 70,000 
workers have received training as part of the program. The SECTORS Act 
will drive strategic alliances that advance a region's economic 
vitality and make sure workers have the skills in place to move forward 
industries that are pivotal to keeping our economy growing.
  Madam Speaker, I want to thank Congressman Loebsack and Congressman 
Platts for introducing this legislation that is so important to our 
regional and national economy. I urge support of H.R. 1855, which helps 
to strategically position our growing industries with a highly-skilled 
workforce ready to innovate and complete in the 21st Century global 
marketplace.
  Mr. CONYERS. Madam Speaker, I rise in strong support of H.R. 1855, 
the ``Strengthening Employment Clusters to Organize Regional Success, 
SECTORS Act''. It is an important piece of legislation, and I would 
like to thank Representative David Loebsack for bringing it to the 
floor. This bill, when passed, will help to encourage job advancement 
along with job growth.
  By requiring the Secretary of Labor to award competitive grants that 
may reach totals of over $2 million that will spur job growth and in-
house training, the SECTORS bill will help workers who have been hard 
hit by this recession. This federal-industrial partnership and the 
coordination with state and local institutions to improve economic and 
educational investment will ensure a better way forward for the 
American worker.
  In the current job climate, it is not only the unemployed who feel 
the wrath of recession. There are many workers, in my district 
included, who continue to be outpaced by changing work environments. 
Many industries that employ thousands of workers do not have the money 
or the structure necessary to promote in-house training. These 
industries are homes to jobs that often have no hope of advancement, 
jobs that steer workers away from their families and into dead-end 
career paths.
  This bill will help workers become acclimated to the changing 
environment. By promoting job training and job retention through 
federal grants, the SECTORS Act brings hope to the thousands of workers 
who may not know at the moment what their future will look like. It 
fosters the hope that has been so barren these last months and brings 
opportunity to the men and women who need it most.
  Again, I encourage my colleagues to support the bill.
  Mr. LOEBSACK. I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Iowa (Mr. Loebsack) that the House suspend the rules and 
pass the bill, H.R. 1855, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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