Strengthening Employment Clusters to Organize Regional Success Act of 2013 or SECTORS Act of 2013 - Amends the Workforce Investment Act of 1998 to require the Secretary of Labor to award renewable three-year competitive industry or sector partnership grants to eligible entities to develop strategies that: (1) encourage growth and competitiveness through work with employers within a targeted industry cluster; (2) help workers move toward economic self-sufficiency and ensure that they have access to supportive services; (3) address the needs of firms with limited human resources or in-house training capacity, including small- and medium-sized firms; and (4) coordinate with entities that carry out state and local workforce investment, economic development, and education activities.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 919 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 919
To promote industry growth and competitiveness and to improve worker
training, retention, and advancement, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 28, 2013
Mr. Loebsack introduced the following bill; which was referred to the
Committee on Education and the Workforce
_______________________________________________________________________
A BILL
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 2013'' or the ``SECTORS Act of 2013''.
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) 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 entities, 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.--An industry or sector
partnership is 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 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) one or more representatives
of State labor organizations, central
labor coalitions, or other labor
organizations, except in instances
where no labor representation exists;
``(III) one or more representatives
of local boards;
``(IV) one or more representatives
of postsecondary educational
institutions or other training
providers; and
``(V) one 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, as
defined in this paragraph, for more than one 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) Industry-recognized.--The term `industry-recognized',
used with respect to a credential, means a credential that--
``(A) is sought or accepted by businesses within
the industry or sector involved as a recognized,
preferred, or required credential for recruitment,
screening, or hiring purposes; and
``(B) is endorsed by a nationally recognized trade
association or organization representing a significant
part of the industry or sector, where appropriate.
``(9) Nationally portable.--The term `nationally portable',
used with respect to a credential, means a credential that is
sought or accepted by businesses within the industry sector
involved, across multiple States, as a recognized, preferred,
or required credential for recruitment, screening, or hiring
purposes.
``(10) 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), 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)(8)(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 and nationally portable,
industry-recognized credentials (or, if not
available for the targeted industry, other
credentials, as determined appropriate by the
Secretary), particularly for higher skill,
high-priority occupations validated by the
industry;
``(v) ensuring that the State agency
carrying out the State program under the
Wagner-Peyser Act (29 U.S.C. 49 et seq.),
including staff of the agency that provide
services under such Act, 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 nationally portable,
industry-recognized credentials or, if not available,
other credentials, related to the targeted industry
cluster that the eligible entity proposes to support,
develop, or use as a performance measure, in order to
carry out the strategic objectives described in
subparagraph (D).
``(F) A description of the manner in which the
eligible entity intends to make sustainable progress
toward the strategic objectives.
``(G) 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 nationally portable,
industry-recognized credentials (or, if
not available for the targeted
industry, other credentials) described
in the application under subparagraph
(E);
``(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
nationally portable, industry-
recognized 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.
``(H) A timeline for achieving progress toward the
strategic objectives.
``(I) 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 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)(G).
``(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 10 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 one or more national or State organizations to
provide technical assistance to foster the planning, formation,
and implementation of industry cluster partnerships.
``(3) 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.
``(4) 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;
``(VIII) other areas where industry
or sector partnerships can assist each
other; and
``(IX) alignment of curricula to
nationally portable, industry-
recognized credentials in the sectors
where they are available or, if not
available for the sector, other
credentials, as described in the
application under subsection (d)(2)(E);
``(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.
``(5) Report.--Not later than 18 months after the date of
enactment of the Strengthening Employment Clusters to Organize
Regional Success Act of 2013 and on an annual basis thereafter,
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 the reporting or sharing of 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.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Education and the Workforce.
Referred to the Subcommittee on Higher Education and Workforce Training.
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