II 113th CONGRESS 1st Session S. 1269 IN THE SENATE OF THE UNITED STATES July 8, 2013 Mr. Franken (for himself, Mr. Schatz , and Mr. Durbin ) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions A BILL To amend the Workforce Investment Act of 1998 to support community college and industry partnerships, and for other purposes.

1. Short title This Act may be cited as the Community College to Career Fund Act . 2. Community College to Career Fund Title I of the Workforce Investment Act of 1998 is amended by adding at the end the following: G Community College to Career Fund 199B. Community college and industry partnerships program (a) Grants authorized From funds appropriated under section 199F(a)(1), the Secretary of Labor and the Secretary of Education, in accordance with the interagency agreement described in section 199G, shall award competitive grants to eligible entities described in subsection (b) for the purpose of developing, offering, improving, or providing educational or career training programs for workers. (b) Eligible entity (1) Partnerships with employers or an employer or industry partnership (A) General definition For purposes of this section, an eligible entity means any of the entities described in subparagraph (B) (or a consortium of any of such entities) in partnership with employers or an employer or industry partnership representing multiple employers. (B) Description of entities The entities described in this subparagraph are— (i) a community college; (ii) a 4-year public institution of higher education (as defined in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a))) that offers 2-year degrees, and that will use funds provided under this section for activities at the certificate and associate degree levels; (iii) a Tribal College or University (as defined in section 316(b) of the Higher Education Act of 1965 ( 20 U.S.C. 1059c(b) )); or (iv) a private or nonprofit, 2-year institution of higher education (as defined in section 102 of the Higher Education Act of 1965 ( 20 U.S.C. 1002 )) in the Commonwealth of Puerto Rico, Guam, the United States Virgin Islands, American Samoa, the Commonwealth of the Northern Mariana Islands, the Republic of the Marshall Islands, the Federated States of Micronesia, or the Republic of Palau. (2) Additional Partners (A) Authorization of additional partners In addition to partnering with employers or an employer or industry partnership representing multiple employers as described in paragraph (1)(A), an entity described in paragraph (1) may include in the partnership described in paragraph (1) 1 or more of the organizations described in subparagraph (B). An eligible entity that includes 1 or more such organizations shall collaborate with the State or local board in the area served by the eligible entity. (B) Organizations The organizations described in this subparagraph are as follows: (i) An adult education provider or institution of higher education (as defined in section 101 of the Higher Education Act of 1965 ( 20 U.S.C. 1001 )). (ii) A community-based organization. (iii) A joint labor-management partnership. (iv) A State or local board. (v) Any other organization that the Secretaries consider appropriate. (c) Educational or career training program For purposes of this section, the Governor of the State in which at least 1 of the entities described in subsection (b)(1)(B) of an eligible entity is located shall establish criteria for an educational or career training program leading to a recognized postsecondary credential for which an eligible entity submits a grant proposal under subsection (d). (d) Application An eligible entity seeking a grant under this section shall submit an application containing a grant proposal to the Secretaries at such time and containing such information as the Secretaries determine is required, including a detailed description of— (1) the specific educational or career training program for which the grant proposal is submitted and how the program meets the criteria established under subsection (e), including the manner in which the grant will be used to develop, offer, improve, or provide the educational or career training program; (2) the extent to which the program will meet the educational or career training needs of workers in the area served by the eligible entity; (3) the extent to which the program will meet the needs of employers in the area for skilled workers in in-demand industry sectors and occupations; (4) the extent to which the program described fits within any overall strategic plan developed by the eligible entity; (5) any previous experience of the eligible entity in providing educational or career training programs, the absence of which shall not automatically disqualify an eligible institution from receiving a grant under this section; and (6) in the case of a project that involves an educational or career training program that leads to a recognized postsecondary credential described in subsection (f), how the program leading to the credential meets the criteria described in subsection (c). (e) Criteria for award (1) In general Grants under this section shall be awarded based on criteria established by the Secretaries, that include the following: (A) A determination of the merits of the grant proposal submitted by the eligible entity involved to develop, offer, improve, or provide an educational or career training program to be made available to workers. (B) An assessment of the likely employment opportunities available in the area to individuals who complete an educational or career training program that the eligible entity proposes to develop, offer, improve, or provide. (C) An assessment of prior demand for training programs by individuals eligible for training and served by the eligible entity, as well as availability and capacity of existing (as of the date of the assessment) training programs to meet future demand for training programs. (2) Priority In awarding grants under this section, the Secretaries shall give priority to eligible entities that— (A) include a partnership, with employers or an employer or industry partnership, that— (i) pays a portion of the costs of educational or career training programs; or (ii) agrees to hire individuals who have attained a recognized postsecondary credential resulting from the educational or career training program of the eligible entity; (B) enter into a partnership with a labor organization or labor-management training program to provide, through the program, technical expertise for occupationally specific education necessary for a recognized postsecondary credential leading to a skilled occupation in an in-demand industry sector; (C) are focused on serving individuals with barriers to employment, low-income, non-traditional students, students who are dislocated workers, students who are veterans, or students who are long-term unemployed; (D) include community colleges serving areas with high unemployment rates, including rural areas; (E) are eligible entities that include an institution of higher education eligible for assistance under title III or V of the Higher Education Act of 1965 ( 20 U.S.C. 1051 et seq. ; 20 U.S.C. 1101 et seq.); and (F) include a partnership, with employers or an employer or industry partnership, that increases domestic production of goods, such as advanced manufacturing or production of clean energy technology. (f) Use of funds Grant funds awarded under this section shall be used for one or more of the following: (1) The development, offering, improvement, or provision of educational or career training programs, that provide relevant job training for skilled occupations that will meet the needs of employers in in-demand industry sectors, and which may include registered apprenticeship programs, on-the-job training programs, and programs that support employers in upgrading the skills of their workforce. (2) The development and implementation of policies and programs to expand opportunities for students to earn a recognized postsecondary credential, including a degree, in in-demand industry sectors and occupations, including by— (A) facilitating the transfer of academic credits between institutions of higher education, including the transfer of academic credits for courses in the same field of study; (B) expanding articulation agreements and policies that guarantee transfers between such institutions, including through common course numbering and use of a general core curriculum; and (C) developing or enhancing student support services programs. (3) The creation of workforce programs that provide a sequence of education and occupational training that leads to a recognized postsecondary credential, including a degree, including programs that— (A) blend basic skills and occupational training; (B) facilitate means of transitioning participants from non-credit occupational, basic skills, or developmental coursework to for-credit coursework within and across institutions; (C) build or enhance linkages, including the development of dual enrollment programs and early college high schools, between secondary education or adult education programs (including programs established under the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2301 et seq.) and title II of this Act); (D) are innovative programs designed to increase the provision of training for students, including students who are members of the National Guard or Reserves, to enter skilled occupations in in-demand industry sectors; and (E) support paid internships that will allow students to simultaneously earn credit for work-based learning and gain relevant employment experience in an in-demand industry sector or occupation, which shall include opportunities that transition individuals into employment. (4) The support of regional or national in-demand industry sectors to develop skills consortia that will identify pressing workforce needs and develop solutions such as— (A) standardizing industry certifications; (B) developing new training technologies; and (C) collaborating with industry employers to define and describe how specific skills lead to particular jobs and career opportunities. 199C. Pay-for-Performance and Pay-for-Success job training projects (a) Award grants authorized From funds appropriated under section 199F(a)(2), the Secretaries, in accordance with the interagency agreement described in section 199G, shall award grants on a competitive basis to eligible entities described in subsection (b) who achieve specific performance outcomes and criteria agreed to by the Secretaries under subsection (c) to carry out job training projects. Projects funded by grants under this section shall be referred to as either Pay-for-Performance or Pay-for-Success projects, as set forth in subsection (b). (b) Eligible entity To be eligible to receive a grant under this section, an entity shall be a State or local organization (which may be a local workforce organization) in partnership with an entity such as a community college or other training provider, who— (1) in the case of an entity seeking to carry out a Pay-for-Performance project, agrees to be reimbursed under the grant primarily on the basis of achievement of specified performance outcomes and criteria agreed to by the Secretaries under subsection (c); or (2) in the case of an entity seeking to carry out a Pay-for-Success project— (A) enters into a partnership with an investor, such as a philanthropic organization that provides funding for a specific project to address a clear and measurable job training need in the area to be served under the grant; and (B) agrees to be reimbursed under the grant only if the project achieves specified performance outcomes and criteria agreed to by the Secretaries under subsection (c). (c) Performance outcomes and criteria Not later than 6 months after the date of enactment of this subtitle, the Secretaries shall establish and publish specific performance measures, which include performance outcomes and criteria, for the initial qualification and reimbursement of eligible entities to receive a grant under this section. At a minimum, to receive such a grant, an eligible entity shall— (1) identify a particular program area and client population that is not achieving optimal outcomes; (2) provide evidence that the proposed strategy for the job training project would achieve better outcomes; (3) clearly articulate and quantify the improved outcomes of such new approach; (4) for a Pay-for-Success project, specify a monetary value that would need to be paid to obtain such outcomes and explain the basis for such value; (5) identify data that would be required to evaluate whether outcomes are being achieved for a target population and a comparison group; (6) identify estimated savings that would result from the improved outcomes, including to other programs or units of government; (7) demonstrate the capacity to collect required data, track outcomes, and validate those outcomes; and (8) specify how the entity will meet any other criteria the Secretaries may require. (d) Period of availability for pay-for-Success projects Funds appropriated to carry out Pay-for-Success projects pursuant to section 199F(a)(2) shall, upon obligation, remain available for disbursement until expended, notwithstanding section 1552 of title 31, United States Code, and, if later deobligated, in whole or in part, be available until expended under additional Pay-for-Success grants under this section. 199D. Bring jobs back to America grants (a) Grants authorized From funds appropriated under section 199F(a)(3), the Secretaries, in accordance with the interagency agreement described in section 199G, shall award grants to State or local governments for job training and recruiting activities that can quickly provide businesses with skilled workers in order to encourage businesses to relocate to or remain in areas served by such governments. The Secretaries shall coordinate activities with the Secretary of Commerce in carrying out this section. (b) Purpose and use of funds Grant funds awarded under this section may be used by a State or local government to issue subgrants, using procedures established by the Secretaries, to eligible entities, including those described in section 199B(b), to assist such eligible entities in providing job training necessary to provide skilled workers for businesses that have relocated or are considering relocating operations outside the United States, and may instead relocate to or remain in the areas served by such governments, and in conducting recruiting activities. (c) Application A State or local government seeking a grant under the program established under subsection (a) shall submit an application to the Secretaries in such manner and containing such information as the Secretaries may require. At a minimum, each application shall include— (1) a description of the eligible entity the State or local government proposes to assist in providing job training or recruiting activities; (2) a description of the proposed or existing business facility involved, including the number of jobs relating to such facility and the average wage or salary of those jobs; and (3) a description of any other resources that the State has committed to assisting such business in locating such facility, including tax incentives provided, bonding authority exercised, and land granted. (d) Criteria The Secretaries shall award grants under this section to the State and local governments that— (1) the Secretaries determine are most likely to succeed, with such a grant, in assisting an eligible entity in providing the job training and recruiting necessary to cause a business to relocate to or remain in an area served by such government; (2) will fund job training and recruiting programs that will result in the greatest number and quality of jobs; (3) have committed State or other resources, to the extent of their ability as determined by the Secretaries, to assist a business to relocate to or remain in an area served by such government; and (4) have met such other criteria as the Secretaries consider appropriate, including criteria relating to marketing plans, and benefits for ongoing area or State strategies for economic development and job growth. 199E. Grants for entrepreneur and small business startup training (a) Grants authorized From funds appropriated under section 199F(a)(4), the Secretaries, in accordance with the interagency agreement described in section 199G, shall award grants, on a competitive basis, to eligible entities described in subsection (b) to provide training in starting a small business and entrepreneurship. The Secretaries shall coordinate activities with the Administrator of the Small Business Administration in carrying out this section, including coordinating the development of criteria and selection of proposals. (b) Eligible entity (1) In general For purposes of this section, the term eligible entity means an entity described in section 199B(b)(1)(B) (or a consortium of any of such entities) in partnership with at least 1 local or regional economic development entity described in paragraph (2). (2) Additional Partners Local or regional economic development entities described in this paragraph are the following: (A) Small business development centers. (B) Women’s business centers. (C) Regional innovation clusters. (D) Local accelerators or incubators. (E) State or local economic development agencies. (c) Application An eligible entity seeking a grant under this section shall submit an application containing a grant proposal in such manner and containing such information as the Secretaries and the Administrator of the Small Business Administration shall require. Such information shall include a description of the manner in which small business and entrepreneurship training (including education) will be provided, the role of partners in the arrangement involved, and the manner in which the proposal will integrate local economic development resources and partner with local economic development entities. (d) Use of funds Grant funds awarded under this section shall be used to provide training in starting a small business and entrepreneurship, including through online courses, intensive seminars, and comprehensive courses. 199F. Authorization of appropriations (a) In general There is authorized to be appropriated $8,000,000,000 to carry out this subtitle, of which $4,000,000,000 is authorized to be appropriated to the Secretary of Labor and $4,000,000,000 is authorized to be appropriated to the Secretary of Education. Such amounts are authorized as follows: (1) $7,000,000,000 is authorized for the program established by section 199B; (2) $500,000,000 is authorized for the program established by section 199C; (3) $250,000,000 is authorized for the program established by section 199D; and (4) $250,000,000 is authorized for the program established by section 199E. (b) Administrative Cost Not more than 5 percent of the amounts made available under paragraph (1), (2), (3), or (4) of subsection (a) may be used by the Secretaries to administer the program described in that paragraph, including providing technical assistance and carrying out evaluations for the program described in that paragraph. (c) Period of availability Except as provided in section 199C(d), the funds appropriated pursuant to subsection (a) for a fiscal year shall be available for Federal obligation for that fiscal year and the succeeding 2 fiscal years. 199G. Interagency agreement (a) In general The Secretary of Labor and the Secretary of Education shall jointly develop policies for the administration of this subtitle in accordance with such terms as the Secretaries shall set forth in an interagency agreement. Such interagency agreement, at a minimum, shall include a description of the respective roles and responsibilities of the Secretaries in carrying out this subtitle (both jointly and separately), including— (1) how the funds available under this subtitle will be obligated and disbursed and compliance with applicable laws (including regulations) will be ensured, as well as how the grantees will be selected and monitored; (2) how evaluations and research will be conducted on the effectiveness of grants awarded under this subtitle in addressing the education and employment needs of workers, and employers; (3) how technical assistance will be provided to applicants and grant recipients; (4) how information will be disseminated, including through electronic means, on best practices and effective strategies and service delivery models for activities carried out under this subtitle; and (5) how policies and processes critical to the successful achievement of the education, training, and employment goals of this subtitle will be established. (b) Transfer authority The Secretary of Labor and the Secretary of Education shall have the authority to transfer funds between the Department of Labor and the Department of Education to carry out this subtitle in accordance with the agreement described in subsection (a). The Secretary of Labor and the Secretary of Education shall have the ability to transfer funds to the Secretary of Commerce and the Administrator of the Small Business Administration to carry out sections 199D and 199E, respectively. (c) Reports The Secretary of Labor and the Secretary of Education shall jointly develop and submit a biennial report to the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Education and the Workforce of the House of Representatives, describing the activities carried out under this subtitle and the outcomes of such activities. 199H. Definitions For purposes of this subtitle: (1) Community college The term community college has the meaning given the term junior or community college in section 312(f) of the Higher Education Act of 1965 ( 20 U.S.C. 1058(f) ). (2) Nontraditional student The term nontraditional student has the meaning given the term in section 803(j) of the Higher Education Act of 1965 ( 20 U.S.C. 1161c(j) ). (3) Recognized postsecondary credential The term recognized postsecondary credential means a credential consisting of— (A) an industry-recognized certificate; (B) a certificate of completion of an apprenticeship registered under the Act of August 16, 1937 (commonly known as the National Apprenticeship Act ; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq. ); or (C) an associate or baccalaureate degree. (4) Secretaries The term Secretaries means the Secretary of Labor and the Secretary of Education. . 3. Conforming amendment The table of contents for the Workforce Investment Act of 1998 ( 20 U.S.C. 9201 note) is amended by inserting after the item relating to section 199A the following: Subtitle G—Community College to Career Fund Sec. 199B. Community college and industry partnerships program. Sec. 199C. Pay-for-Performance and Pay-for-Success job training projects. Sec. 199D. Bring jobs back to America grants. Sec. 199E. Grants for entrepreneur and small business startup training. Sec. 199F. Authorization of appropriations. Sec. 199G. Interagency agreement. Sec. 199H. Definitions. .