IIB 
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 im-
prove worker training, retention, and advancement, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Strengthening Employ-
ment 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 Work-
force 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 collabo-
rative 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 advance-
ment in targeted industry clusters, including by devel-
oping— 
‘‘(1) immediate strategies for regions and com-
munities to fulfill pressing skilled workforce needs; 
‘‘(2) long-term plans to grow targeted industry 
clusters with better training and a more productive 
workforce; 
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‘‘(3) core competencies and competitive advan-
tages for regions and communities undergoing struc-
tural 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 lad-
der’ means an identified series of positions, work ex-
periences, 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 fam-
ily 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 com-
munity; and 
‘‘(D) other factors that may vary by re-
gion. 
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‘‘(3) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ means— 
‘‘(A) an industry or sector partnership; or 
‘‘(B) an eligible State agency. 
‘‘(4) ELIGIBLE STATE AGENCY.—The term ‘eli-
gible 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 pro-
gram under this section. 
‘‘(5) HIGH-PRIORITY OCCUPATION.—The term 
‘high-priority occupation’ means an occupation 
that— 
‘‘(A) has a significant presence in an in-
dustry cluster; 
‘‘(B) is in demand by employers; 
‘‘(C) pays family-sustaining wages that en-
able workers to achieve economic self-suffi-
ciency, 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 
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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 col-
laborative that organizes key stakeholders 
in a targeted industry cluster into a work-
ing 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 in-
dustry cluster, including small- and 
medium-sized employers when prac-
ticable; 
‘‘(II) 1 or more representatives of 
State 
labor 
organizations, 
central 
labor coalitions, or other labor organi-
zations, except instances where no 
labor representation exists; 
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‘‘(III) 1 or more representatives 
of local boards; 
‘‘(IV) 1 or more representatives 
of postsecondary educational institu-
tions or other training providers; and 
‘‘(V) 1 or more representatives of 
State workforce agencies or other en-
tities providing employment services. 
‘‘(ii) DIVERSE
AND
DISTINCT
REP-
RESENTATION.—No individual may serve 
as a member in an industry or sector part-
nership for more than 1 of the required 
categories described in subclauses (I) 
through (V) of clause (i). 
‘‘(B) AUTHORIZED MEMBERS.—An indus-
try or sector partnership may include represent-
atives of— 
‘‘(i) State or local government; 
‘‘(ii) State or local economic develop-
ment agencies; 
‘‘(iii) other State or local agencies; 
‘‘(iv) chambers of commerce; 
‘‘(v) nonprofit organizations; 
‘‘(vi) philanthropic organizations; 
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‘‘(vii) economic development organiza-
tions; 
‘‘(viii) industry associations; and 
‘‘(ix) other organizations, as deter-
mined necessary by the members com-
prising 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 appro-
priated to carry out this section, the Secretary shall 
award, on a competitive basis, grants described in 
paragraph (3) to eligible entities to enable the eligi-
ble entities to plan and implement, respectively, the 
eligible entities’ strategic objectives in accordance 
with subsection (d)(2)(D). 
‘‘(2) MAXIMUM AMOUNT.— 
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‘‘(A) IMPLEMENTATION GRANTS.—An im-
plementation 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 ex-
ceed 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 sec-
tion 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, ex-
cept that the Secretary shall— 
‘‘(i) prioritize renewals to eligible enti-
ties that can demonstrate the long-term 
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sustainability of an industry or sector part-
nership funded under this section; and 
‘‘(ii) require assurances that the eligi-
ble 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 sub-
paragraph (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 per-
cent cash match from the State, the 
industry cluster, or some combination 
thereof, of the eligible entity. 
‘‘(D) 
FEDERAL
AND
NON-FEDERAL 
SHARE.— 
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‘‘(i) FEDERAL
SHARE.—Except as 
provided in subparagraph (C)(ii) and 
clause (iii) of this subparagraph, the Fed-
eral 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-Fed-
eral 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 lo-
cated in a State or local area that is re-
ceiving a national emergency grant under 
section 173. 
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‘‘(4) FISCAL AGENT.—Each eligible entity re-
ceiving 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 PE-
RIODS.—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 INDUS-
TRY
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 as-
sociations and organizations, labor organiza-
tions, State boards, local boards, economic de-
velopment agencies, and other organizations 
that the eligible entity determines necessary, to 
identify an appropriate targeted industry clus-
ter based on criteria that include, at a min-
imum— 
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‘‘(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, eco-
nomic development agencies, community organi-
zations, and other organizations that the eligi-
ble entity determines necessary to ensure that 
the targeted industry cluster identified under 
subparagraph (A) should be targeted for invest-
ment, based primarily on the following criteria: 
‘‘(i) Demonstrated demand for job 
growth potential. 
‘‘(ii) Employment base. 
‘‘(iii) Wages and benefits. 
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‘‘(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 Sec-
retary may require. An application submitted under 
this paragraph shall contain, at a minimum, the fol-
lowing: 
‘‘(A) A description of the eligible entity, 
evidence of the eligible entity’s capacity to carry 
out activities in support of the strategic objec-
tives identified in the application under sub-
paragraph (D), and a description of the ex-
pected participation and responsibilities of each 
of the mandatory partners described in sub-
section (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). 
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‘‘(C) A description of the workers that will 
be targeted or recruited by the partnership, in-
cluding an analysis of the existing labor market, 
a description of potential barriers to employ-
ment for targeted workers, and a description of 
strategies that will be employed to help workers 
overcome such barriers. 
‘‘(D) A description of the strategic objec-
tives that the eligible entity intends to carry out 
for the targeted industry cluster, which objec-
tives shall include— 
‘‘(i) recruiting key stakeholders in the 
targeted industry cluster, such as multiple 
businesses and employers, labor organiza-
tions, local boards, and education and 
training providers, and regularly convening 
the stakeholders in a collaborative struc-
ture that supports the sharing of informa-
tion, 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; 
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‘‘(iii) facilitating economies of scale by 
aggregating training and education needs 
of multiple employers; 
‘‘(iv) 
helping 
postsecondary 
edu-
cational institutions, training institutions, 
apprenticeship programs, and all other 
training programs authorized under this 
Act, align curricula entrance requirements 
and programs to industry demand, particu-
larly for higher skill, high-priority occupa-
tions 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 un-
employment insurance of the job and train-
ing opportunities that may result from the 
implementation of this grant; 
‘‘(vi) informing and collaborating with 
organizations such as youth councils, busi-
ness-education partnerships, apprenticeship 
programs, secondary schools, and postsec-
ondary educational institutions, and with 
parents and career counselors, for the pur-
pose of addressing the challenges of con-
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necting disadvantaged adults as defined in 
section 132(b)(1)(B)(v) and disadvantaged 
youth as defined in section 127(b) to ca-
reers; 
‘‘(vii) helping companies identify, and 
work together to address, common organi-
zational 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-per-
formance 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 compa-
nies, in order to enable dislocated, incum-
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bent 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 in-
dustry or sector partnerships to attract po-
tential 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 indi-
viduals who have completed a term of im-
prisonment), by identifying such barriers 
through analysis of the existing labor mar-
ket 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 competi-
tiveness and job quality, such as joint pur-
chasing, market research, or centers for 
technology and innovation. 
‘‘(E) A description of the manner in which 
the eligible entity intends to make sustainable 
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progress toward the strategic objectives de-
scribed in subparagraph (D). 
‘‘(F) Performance measures for measuring 
progress toward the strategic objectives. Such 
performance measures— 
‘‘(i) may consider the benefits pro-
vided 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 re-
ceiving 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 non-
incumbent workers, the number of 
workers placed in sector-related jobs; 
and 
‘‘(ii) may consider the benefits pro-
vided by the grant activities funded under 
this section for firms and industries in the 
targeted industry cluster, such as— 
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‘‘(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 stand-
ards or career pathways; 
‘‘(III) the creation or updating of 
portable, industry-recognized creden-
tials, including national credentials or 
where there is not such a credential, 
the creation or updating of a training 
curriculum that can lead to the devel-
opment 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 to-
ward the strategic objectives. 
‘‘(H) In the case of an eligible entity desir-
ing an implementation grant under this section, 
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an assurance that the eligible entity will lever-
age 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 Edu-
cation and Family Literacy Act of 1998 
(20 U.S.C. 9201 et seq.); 
‘‘(iii) economic development funding; 
‘‘(iv) employer contributions to train-
ing initiatives; or 
‘‘(v) providing employees with em-
ployee release time for such training or 
supportive services. 
‘‘(e) AWARD BASIS.— 
‘‘(1) GEOGRAPHIC
DISTRIBUTION.—The Sec-
retary 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 eligi-
ble entities that— 
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