A bill to amend the Workforce Investment Act of 1998 to provide for strategic sectoral skills gap assessments, strategic skills gap action plans, and strategic training capacity enhancement seed grants, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Sectoral Market Assessment for 
Regional Training Enhancement and Revitalization Act''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) More than \1/3\ of the Nation's current workforce lacks 
        the basic skills necessary to succeed in today's labor market.
            (2) Globalization of the economy is leading to losses of 
        jobs in key domestic industries, as well as challenges to 
        competitiveness and productivity in other domestic industries.
            (3) To remain economically vital and competitive, the 
        Nation must invest in generating jobs and train a workforce 
        skilled enough to contribute productively to the United States 
        economy.
            (4) Strategic planning that links workforce development and 
        economic development, and the targeting of resources to 
        industries that can build strong regional economies and create 
        jobs with living wages for workers, need to be priorities for 
        the workforce investment system.
            (5) States and local workforce investment boards can play 
        lead roles in guiding a more strategic process for achieving 
        economic growth through workforce development.

SEC. 3. SKILLS GAP CAPACITY ENHANCEMENT GRANTS.

    Subtitle B of title I of the Workforce Investment Act of 1998 (29 
U.S.C. 2811 et seq.) is amended--
            (1) by redesignating section 137 as section 138; and
            (2) by inserting after section 136 the following:

``SEC. 137. SKILLS GAP CAPACITY ENHANCEMENT GRANTS.

    ``(a) Purposes.--The purposes of this section are--
            ``(1) to assist States and local boards in better focusing 
        funds provided under this subtitle on activities and programs 
        that address labor shortages and meet the emerging demand for 
        skills in high-quality jobs in area industries;
            ``(2) to enhance the efficiency of the one-stop delivery 
        systems and providers of training services;
            ``(3) to establish and improve partnerships between local 
        boards, industry sectors, economic development agencies, 
        providers of training services (including secondary schools, 
        postsecondary educational institutions, community-based 
        organizations, business associations, and providers of joint 
        labor-management programs), providers of supportive services, 
        and other related public and private entities;
            ``(4) to strengthen integration of workforce development 
        strategies and economic development strategies in States, local 
        areas, and labor markets;
            ``(5) to retain vital industries in the local areas and 
        regions involved, avoid dislocation of workers, and strengthen 
        the competitiveness of key industries; and
            ``(6) to encourage the development of career ladders and 
        advancement efforts in local industries.
    ``(b) Definitions.--In this section:
            ``(1) Consortium.--The term `consortium' means a consortium 
        of local boards, established as described in subsection (d)(3).
            ``(2) Region.--The term `region' means 2 or more local 
        areas that comprise a common labor market for an industry 
        sector or group of related occupations.
            ``(3) Training services.--The term `training services' 
        means services described in section 134(d)(4).
    ``(c) Grants to States.--
            ``(1) In general.--The Secretary shall make grants to 
        States, to enable the States to assist local boards and 
        consortia in carrying out the activities described in 
        subsection (e).
            ``(2) Formula.--
                    ``(A) In general.--The Secretary shall make the 
                grants in accordance with the formula used to make 
                grants to States under section 132(b)(1)(B) (other than 
                clause (iv)), subject to subparagraph (B).
                    ``(B) Small state minimum allotment.--The Secretary 
                shall ensure that no State shall receive an allotment 
                under this paragraph for a fiscal year that is less 
                than \1/2\ of 1 percent of the funds made available to 
                carry out this section for that fiscal year.
    ``(d) Grants to Local Boards.--
            ``(1) In general.--A State that receives a grant under 
        subsection (c)--
                    ``(A) shall use the funds made available through 
                the grant to make grants to local boards and consortia 
                to carry out the activities described in subsection 
                (e); and
                    ``(B) may use not more than 15 percent of the funds 
                made available through the grant, at the election of 
                the State, to prepare strategic sectoral skills gap 
                assessments, as described in subsection (e)(2), in the 
                local areas or regions involved, or to provide 
                technical assistance to local boards, consortia, or 
                partnerships described in subsection (e)(3).
            ``(2) Consideration.--In making the grants, the State may 
        take into account the size of the workforce in each local area 
        or region.
            ``(3) Consortia.--States shall encourage local boards to 
        aggregate, to the maximum extent practicable, into consortia 
        representing regions, for purposes of carrying out activities 
        described in subsection (e). Nothing in this paragraph shall be 
        construed to require local boards to aggregate into such 
        consortia.
            ``(4) Applications.--To be eligible to receive a grant 
        under this section, a local board or consortium shall submit an 
        application to the State, at such time and in such manner as 
        the State may require, containing--
                    ``(A) information identifying the members of the 
                partnership described in subsection (e)(3) that will 
                carry out the activities described in subsection (e); 
                and
                    ``(B) an assurance that the board or consortium 
                will use, or ensure that the partnership uses, the 
                funds to carry out the activities described in 
                subsection (e).
    ``(e) Use of Funds.--
            ``(1) In general.--A local board or consortium that 
        receives a grant under this section--
                    ``(A) shall ensure that the partnership described 
                in paragraph (3) uses the funds made available through 
                the grant to--
                            ``(i) prepare a strategic sectoral skills 
                        gap assessment, as described in paragraph (2), 
                        unless the State elects to prepare the 
                        assessment;
                            ``(ii) develop a strategic skills gap 
                        action plan, as described in paragraph (4); and
                            ``(iii) provide strategic training capacity 
                        enhancement seed grants to providers of 
                        training services specified in subsection 
                        (a)(3), one-stop operators, and other 
                        appropriate intermediaries, as described in 
                        paragraph (5); and
                    ``(B) may use funds made available through the 
                grant to ensure that activities carried out under this 
                subtitle are carried out in accordance with the 
                strategic skills gap action plan.
            ``(2) Strategic sectoral skills gap assessment.--
                    ``(A) In general.--Except as provided in 
                subparagraph (E), the local board or consortium (or, at 
                the election of the State, that State) shall prepare a 
                strategic sectoral skills gap assessment, which shall--
                            ``(i) identify areas of current and 
                        expected demand for labor and skills in a 
                        specific industry sector or group of related 
                        occupations that is--
                                    ``(I) producing high-quality jobs 
                                in the local area or region involved;
                                    ``(II) developing emerging jobs in 
                                that area or region; or
                                    ``(III) suffering chronic worker 
                                shortages;
                            ``(ii) identify the current and expected 
                        supply of labor and skills in that sector or 
                        group in the local area or region; and
                            ``(iii) identify gaps between the current 
                        and expected demand and supply of labor and 
                        skills in that sector or group in the local 
                        area or region.
                    ``(B) Specific contents.--The assessment shall 
                contain data regarding--
                            ``(i)(I) specific high-quality employment 
                        opportunities offered by industries in the 
                        local area or region; and
                            ``(II) specific skills desired for such 
                        opportunities;
                            ``(ii)(I) occupations and positions in the 
                        local area or region that are difficult to 
                        fill; and
                            ``(II) specific skills desired for such 
                        occupations and positions;
                            ``(iii)(I) areas of growth and decline 
                        among industries and occupations in the local 
                        area or region; and
                            ``(II) specific skills desired for such 
                        growth areas; and
                            ``(iv) specific inventories of skills of 
                        unemployed or underemployed individuals in the 
                        local area or region.
                    ``(C) Information.--The assessment shall contain 
                current (as of the date of preparation of the 
                assessment) information including specific information 
                from multiple employers in the sector or group 
                described in subparagraph (A)(i), labor organizations, 
                and others connected to the businesses and workers in 
                that sector or group, to illuminate local needs of both 
                employers and workers. To the maximum extent possible, 
                the information shall be regularly updated information.
                    ``(D) Survey.--The assessment shall contain the 
                results of a survey or focus group interviews of 
                employers and labor organizations and other relevant 
                individuals and organizations in the local area or 
                region.
                    ``(E) Exception.--
                            ``(i) State.--A State shall not be required 
                        to use the funds made available through a grant 
                        received under this section, to prepare an 
                        assessment described in this paragraph.
                            ``(ii) Local board or consortium.--A local 
                        board or consortium shall not be required to 
                        use the funds made available through a grant 
                        received under this section, to prepare an 
                        assessment described in this paragraph, if the 
                        local board or consortium demonstrates that, 
                        within the 2 years prior to receiving the 
                        grant, an assessment that meets the 
                        requirements of this paragraph has been 
                        prepared for the local area or region involved.
            ``(3) Skills partnership.--In carrying out this section, 
        local boards and consortia shall enter into partnerships that 
        include--
                    ``(A) representatives of the local boards for the 
                local area or region involved;
                    ``(B) representatives of multiple employers for a 
                specific industry sector or group of related 
                occupations, and related sectors or occupations, 
                identified through the assessment described in 
                paragraph (2) as having identified gaps between the 
                current and expected demand and supply of labor and 
                skills in the industry sector or group of related 
                occupations in the local area or region involved;
                    ``(C) representatives of economic development 
                agencies for the local area or region;
                    ``(D) representatives of providers of training 
                services described in subsection (a)(3) in the local 
                area or region;
                    ``(E) representatives nominated by State labor 
                federations or local labor federations; and
                    ``(F) other entities that can provide needed 
                supportive services tailored to the needs of workers in 
                the sector or group.
            ``(4) Strategic skills gap action plan.--The partnership 
        shall develop a strategic skills gap action plan, based on the 
        assessment, that--
                    ``(A)(i) identifies specific barriers to adequate 
                supply of labor and skills in demand in a specific 
                industry sector or group of related occupations that is 
                producing high-quality jobs in the local area or region 
                involved; and
                    ``(ii) identifies activities (which may include the 
                provision of needed supportive services) that will 
                remove or alleviate the barriers described in clause 
                (i) that could be undertaken by one-stop operators and 
                providers of training services described in subsection 
                (a)(3);
                    ``(B) specifies how the local board (or consortium) 
                and economic development agencies in the partnership 
                will integrate the board's or consortium's workforce 
                development strategies with local or regional economic 
                development strategies in that sector or group; and
                    ``(C) identifies resources and strategies that will 
                be used in the local area or region to address the 
                skill gaps for both unemployed and incumbent workers in 
                that sector or group.
            ``(5) Strategic training capacity enhancement seed 
        grants.--
                    ``(A) In general.--The local board or consortium, 
                after consultation with the partnership, shall make 
                grants to providers of training services described in 
                subsection (a)(3), one-stop operators, and other 
                appropriate intermediaries to pay for the Federal share 
                of the cost of--
                            ``(i) developing curricula to meet needs 
                        identified in the assessment described in 
                        paragraph (2) and to overcome barriers 
                        identified in the plan described in paragraph 
                        (4);
                            ``(ii) modifying the programs of training 
                        services offered by the providers in order to 
                        meet those needs and overcome those barriers;
                            ``(iii) operating pilot training efforts 
                        that demonstrate new curricula, or 
                        modifications to curricula, described in clause 
                        (i);
                            ``(iv) expanding capacity of providers of 
                        training services in sectors or groups 
                        described in paragraph (2)(A)(i);
                            ``(v) reorganizing service delivery systems 
                        to better serve the needs of employers and 
                        workers in the sectors or groups; or
                            ``(vi) developing business services to 
                        ensure retention and greater competitiveness of 
                        the sectors or groups.
                    ``(B) Federal share.--
                            ``(i) In general.--The Federal share of the 
                        cost described in subparagraph (A) shall be 75 
                        percent.
                            ``(ii) Non-federal share.--The non-Federal 
                        share of the cost may be provided in cash or in 
                        kind, fairly evaluated, including plant, 
                        equipment, or services.''.

SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

    Section 138 of the Workforce Investment Act of 1998 (29 U.S.C. 
2872), as redesignated by section 3(1), is amended by adding at the end 
the following:
    ``(d) Skills Gap Capacity Enhancement Grants.--In addition to any 
amounts authorized to be appropriated under subsection (a), (b), or 
(c), there are authorized to be appropriated to carry out section 137 
such sums as may be necessary for fiscal years 2006 through 2009.''.

SEC. 5. CONFORMING AMENDMENTS.

    (a) Table of Contents.--The table of contents in section 1(b) of 
the Workforce Investment Act of 1998 is amended by striking the item 
relating to section 137 and inserting the following:

``Sec. 137. Skills gap capacity enhancement grants.
``Sec. 138. Authorization of appropriations.''.
    (b) References to Authorization of Appropriations.--
            (1) Youth activities.--Subsections (a) and (b)(1) of 
        section 127 of the Workforce Investment Act of 1998 (29 U.S.C. 
        2852) are amended by striking ``section 137(a)'' each place it 
        appears and inserting ``section 138(a)''.
            (2) Adult employment and training activities.--Section 
        132(a)(1) of the Workforce Investment Act of 1998 (29 U.S.C. 
        2862(a)(1)) is amended by striking ``section 137(b)'' and 
        inserting ``section 138(b)''.
            (3) Dislocated worker employment and training activities.--
        Subsections (a)(2) and (b)(2)(A)(i) of section 132 of the 
        Workforce Investment Act of 1998 (29 U.S.C. 2862) are amended 
        by striking ``section 137(c)'' each place it appears and 
        inserting ``section 138(c)''.

Summary: Sectoral Market Assessment for Regional Training Enhancement and Revitalization Act - Amends the Workforce Investment Act of 1998 to direct the Secretary of Labor to make skills gap capacity grants to states to assist local boards and regional consortia, through certain partnerships, to make: (1) strategic sectoral skills gap assessments, (2) strategic skills gap action plans. And (3) strategic training capacity enhancement seed grants to providers of training services.