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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1855 Referred in Senate (RFS)]

111th CONGRESS
  2d Session
                                H. R. 1855

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             July 20, 2010

     Received; read twice and referred to the Committee on Health, 
                     Education, Labor, and Pensions

_______________________________________________________________________

                                 AN ACT

 
 To promote industry growth and competitiveness and to improve worker 
     training, retention, and advancement, and for other purposes.

    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
                    ``(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
                                    ``(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.''.

            Passed the House of Representatives July 19, 2010.

            Attest:

                                            LORRAINE C. MILLER,

                                                                 Clerk.
```