I 

113TH CONGRESS 

2D SESSION H. R. 5567 

To carry out pilot programs to improve skills and job training, and for 

other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 18, 2014 

Mr. CARNEY introduced the following bill; which was referred to the 

Committee on Education and the Workforce 

A BILL 

To carry out pilot programs to improve skills and job 

training, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Education and Work5 force Innovation Act’’. 

6 SEC. 2. COMMUNITY WORKFORCE TRAINING GRANTS. 

7 (a) PROGRAM AUTHORIZED.—From the amounts ap8 propriated to carry out this section, the Secretary of Edu9 cation, in consultation with the Secretary of Labor and 

10 the advisory panel, shall carry out a 5-year pilot program 


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1 to award grants to eligible entities to carry out programs 

2 that provide direct skills and job training for individuals 

3 to enter and advance in high-growth, emerging, and in4 demand industries, such as skilled labor and trade indus5 tries. 

6 (b) APPLICATION.—To receive a grant under this sec7 tion, an eligible entity shall submit an application, at such 

8 time, in such manner, and containing such information as 

9 the Secretary of Education may require. 

10 (c) USES OF FUNDS.—An eligible entity that receives 

11 a grant under this section shall use such grant to— 

12 (1) develop and carry out a multiyear program 

13 to provide students enrolled in a school or institution 

14 described in subparagraphs (A) through (C) of sub15 section (g)(1) with education and training to prepare 

16 such students to enter and advance in high-growth, 

17 emerging, or in-demand industries by providing— 

18 (A) customized training that is valuable to 

19 such industries; 

20 (B) increased productivity and knowledge 

21 transfer; 

22 (C) a stable and predictable pipeline to a 

23 high-standard of employment (as determined by 

24 the Secretary of Labor in consultation with the 


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1 advisory panel) upon graduation from the pro2 gram; 

3 (D) a proven model of success, as deter4 mined by the Secretary of Labor in consultation 

5 with the advisory panel; and 

6 (E) an opportunity for career advance7 ment; and 

8 (2) cover costs related to developing and car9 rying out the program, which may include— 

10 (A) covering overhead costs; 

11 (B) improving program design; 

12 (C) expanding access to the program; or 

13 (D) providing tuition subsidies for students 

14 enrolled, or desiring to enroll, in an institution 

15 described in subparagraph (A) or (B) of sub16 section (g)(1), if applicable, to participate in 

17 such program. 

18 (d) MATCHING FUNDS.—An eligible entity that is 

19 awarded a grant under this section shall provide matching 

20 funds from non-Federal sources in an amount equal to not 

21 less than the Federal funds provided under the grant. 

22 (e) ADVISORY PANEL.—In carrying out the pilot pro23 gram under this section, the Secretary of Education shall 

24 establish an advisory panel that is comprised of Federal 

25 education experts and private sector executives. 


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1 (f) AVAILABILITY OF FUNDING.—For fiscal year 

2 2016 and each of the 4 succeeding fiscal years, not less 

3 than $50,000,000 shall be available from the amount ap4 propriated for each such fiscal year for the Workforce In5 novation Fund of the Department of Labor for the costs 

6 of carrying out this section. 

7 (g) DEFINITIONS.—In this section: 

8 (1) ELIGIBLE ENTITY.—The term ‘‘eligible enti9 ty’’ means a private company involved in the manu10 facturing, production, or technology industries, in 

11 partnership with a— 

12 (A) junior or community college; 

13 (B) postsecondary vocational institution; or 

14 (C) secondary school. 

15 (2) JUNIOR OR COMMUNITY COLLEGE.—The 

16 term ‘‘junior or community college’’ has the meaning 

17 given the term in section 312(f) of the Higher Edu18 cation Act of 1965 (20 U.S.C. 1058(f)). 

19 (3) POSTSECONDARY VOCATIONAL INSTITU20 TION.—The term ‘‘postsecondary vocational institu21 tion’’ has the meaning given the term in section 

22 102(c) of the Higher Education Act of 1965 (20 

23 U.S.C. 1002(c)). 

24 (4) SECONDARY SCHOOL.—The term ‘‘sec25 ondary school’’ has the meaning given the term in 


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1 section 9101 of the Elementary and Secondary Edu2 cation Act of 1965 (20 U.S.C. 7801). 

3 (5) SKILLED LABOR AND TRADE INDUSTRIES.— 

4 The term ‘‘skilled labor and trade industries’’ shall 

5 be defined by the Secretary of Labor. 

6 SEC. 3. FINANCING A SKILLED 21ST CENTURY WORKFORCE 

7 GOAL. 

8 (a) PROGRAM AUTHORIZED.—The Secretaries of 

9 Education and the Treasury, jointly with the advisory 

10 panel, shall administer a pay-for-performance pilot pro11 gram for 5 years to raise funds from qualified investors 

12 to cover the cost of a workforce training program that in13 creases trade certifications or apprenticeships for unem14 ployed individuals or dislocated workers, and that meets 

15 the requirements of subsection (b). 

16 (b) PROGRAM REQUIREMENTS.—The pay-for-per17 formance pilot program carried out under subsection (a) 

18 shall require that— 

19 (1) the Secretaries and the advisory panel es20 tablish the goals of increasing trade certifications or 

21 apprenticeships for unemployed individuals or dis22 located workers, and other social and financial goals 

23 (such as reducing Federal, State, and local expendi24 tures related to workforce training) for the program; 


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1 (2) a qualified investor enters into a pay-for2 performance agreement with the Secretaries under 

3 which the qualified investor— 

4 (A) provides funds to a service provider se5 lected by the Secretaries, the advisory panel, 

6 and the qualified investor to meet the goals es7 tablished under paragraph (1); and 

8 (B) agrees to the repayment terms de9 scribed in paragraph (4); 

10 (3) the service provider uses such funds to 

11 carry out a workforce training program for unem12 ployed adults or dislocated workers to meet such 

13 goals; 

14 (4) if the Secretaries and the advisory panel de15 termine that the workforce training program carried 

16 out by the service provider meets the goals estab17 lished under paragraph (1), the Secretaries will 

18 repay the qualified investor the amount of funds 

19 provided by the qualified investor under paragraph 

20 (2) with financial returns; and 

21 (5) the Secretaries and the advisory panel as22 sess the feasibility of expanding the pay-for-perform23 ance pilot program on a larger scale. 


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1 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

2 are authorized to be appropriated $75,000,000 for fiscal 

3 year 2016 to carry out this section. 

4 (d) DEFINITIONS.—In this Act: 

5 (1) ADVISORY PANEL.—The term ‘‘advisory 

6 panel’’ means a panel of business representatives se7 lected by the Secretaries. 

8 (2) DISLOCATED WORKER; UNEMPLOYED INDI9 VIDUAL.—The terms ‘‘dislocated worker’’ and ‘‘un10 employed individual’’ have the meanings given the 

11 terms in section 3 of the Workforce Innovation and 

12 Opportunity Act (29 U.S.C. 3102). 

13 (3) QUALIFIED INVESTOR.—The term ‘‘quali14 fied investor’’ has the meaning given such term in 

15 section 230.501(a) of title 17, Code of Federal Reg16 ulations (or successor regulations). 

17 (4) SECRETARIES.—The term ‘‘Secretaries’’ 

18 means the Secretaries of Education and the Treas19 ury. 

20 (5) SERVICE PROVIDER.—The term ‘‘service 

21 provider’’ means a nonprofit organization that car22 ries out a workforce training program. 

Æ 


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