To establish regional skills alliances, and for other purposes.

June 24, 2004

Mrs. CLINTON introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions

To establish regional skills alliances, 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 `Regional Skills Alliances Act of 2004'.

SEC. 2. FINDINGS.

(a) Many small businesses lack the financial capacity to support the training of high-skilled workers.

(b) Many high-tech companies concerned about worker training consider recruiting employees from overseas because a shortage of information technology workers remains a significant problem.

(c) Too many highly educated workers in underserved communities do not have the specialized skills needed to meet the needs of local businesses.

(d) Regional skills alliances bring businesses and 4-year colleges and universities and community colleges together to help develop and implement effective programs to make sure workers have the training needed to compete in the modern workplace.

SEC. 3. DEFINITION.

In this Act, the term `Secretary' means the Secretary of Labor.

TITLE I--SKILL GRANTS

SEC. 101. AUTHORIZATION.

(a) IN GENERAL- The Secretary, in consultation with the Secretary of Commerce, shall award grants to eligible entities described in subsection (b) to assist such entities to improve the job skills necessary for employment in specific industries.

(b) ELIGIBLE ENTITIES DESCRIBED-

(1) IN GENERAL- An eligible entity described in this subsection is a consortium that--

(A) shall consist of representatives from not less than 5 businesses, or a lesser number of businesses if such lesser number of businesses employs at least 30 percent of the employees in the industry involved in the region (or a non-profit organization that represents such businesses);

(B) may consist of representatives from--

(i) labor organizations;

(ii) State and local government; and

(iii) educational institutions;

(C) is established to serve one or more particular industries; and

(D) is established to serve a particular geographic region.

(2) MAJORITY OF REPRESENTATIVES- A majority of the representatives comprising the consortium shall be representatives described in paragraph (1)(A).

(c) PRIORITY FOR SMALL BUSINESSES- In providing grants under subsection (a), the Secretary shall give priority to an eligible entity if a majority of representatives forming the entity represent small-business concerns (as defined in section 3(a) of the Small Business Act (15 U.S.C. 632(a)).

(d) MAXIMUM AMOUNT OF GRANT- The amount of a grant awarded to an eligible entity under subsection (a) may not exceed $1,000,000 for any fiscal year.

SEC. 102. USE OF AMOUNTS.

(a) IN GENERAL- The Secretary may not award a grant under section 101 to an eligible entity unless such entity agrees to use amounts received from such grant to improve the job skills necessary for employment by businesses in the industry with respect to which such entity was established.

(b) CONDUCT OF PROGRAM-

(1) IN GENERAL- In carrying out the program described in subsection (a), the eligible entity may provide for--

(A) an assessment of training and job skill needs for the industry;

(B) the development of a sequence of skill standards that are benchmarked to advanced industry practices;

(C) the development of curriculum and training methods, including, where appropriate, e-learning or technology-based training;

(D) the purchase, lease, or receipt of donations of training equipment;

(E) the identification of training providers and the development of partnerships between the industry and educational institutions, including community colleges;

(F) the development of apprenticeship programs;

(G) the development of training programs for workers, including dislocated workers;

(H) the development of training plans for businesses; and

(I) the development of the membership of the entity.

(2) ADDITIONAL REQUIREMENT- In carrying out the program described in subsection (a), the eligible entity shall provide for the development and tracking of performance outcome measures for the program and the training providers involved in the program.

(c) ADMINISTRATIVE COSTS- The eligible entity may use not more than 10 percent of the amount of a grant to pay for administrative costs associated with the program described in subsection (a).

SEC. 103. REQUIREMENT OF MATCHING FUNDS.

(a) IN GENERAL- The Secretary may not award a grant under section 101 to an eligible entity unless such entity agrees that the entity will make available non-Federal contributions toward the costs of carrying out activities under the grant in an amount that is not less than $2 for each $1 of Federal funds provided under the grant, of which--

(1) $1 shall be provided by the businesses participating in the entity; and

(2) $1 shall be provided by the State or local government involved.

(b) OTHER CONTRIBUTIONS-

(1) EQUIPMENT- Equipment donations to facilities that are not owned or operated by the members of the eligible entity involved and that are shared by such members may be included in determining compliance with subsection (a).

(2) LIMITATION- An eligible entity may not include in-kind contributions in complying with the requirement of subsection (a). The Secretary may consider such donations in ranking applications.

SEC. 104. LIMIT ON ADMINISTRATIVE EXPENSES.

The Secretary may use not more than 5 percent of the amounts made available to carry out this title to pay the Federal administrative costs associated with awarding grants under this title.

SEC. 105. AUTHORIZATION OF APPROPRIATIONS.

There is authorized to be appropriated to carry out this title $50,000,000 for each of the fiscal years 2005, 2006, and 2007, and such sums as are necessary for each fiscal year thereafter.

TITLE II--PLANNING GRANTS

SEC. 201. AUTHORIZATION.

(a) IN GENERAL- The Secretary, in consultation with the Secretary of Commerce, shall award grants to States to enable such States to assist businesses, organizations, and agencies described in section 101(b) in conducting planning to form consortia described in such section.

(b) MAXIMUM AMOUNT OF GRANT- The amount of a grant awarded to a State under subsection (a) may not exceed $500,000 for any fiscal year.

SEC. 202. APPLICATION.

The Secretary may not award a grant under section 201 to a State unless such State submits to the Secretary an application at such time, in such manner, and containing such information as the Secretary may reasonably require.

SEC. 203. REQUIREMENT OF MATCHING FUNDS.

The Secretary may not award a grant under section 201 to a State unless such State agrees that it will make available non-Federal contributions toward the costs of carrying out activities under this title in an amount that is not less than $1 for each $1 of Federal funds provided under the grant.

SEC. 204. AUTHORIZATION OF APPROPRIATIONS.

There is authorized to be appropriated to carry out this title $5,000,000 for fiscal year 2005.

END