Summary of ARRA Section on Sector Partnership Grant Program for Communities Impacted by Trade

Prepared by the Workforce Alliance

Subchapter C - Industry or Sector Partnership Grant Program forCommunities Impacted by Trade (Section-by-Section Analysis)

Sec. 279A Industry orSector Partnership Grant Program for Communities Impacted by Trade

(a)  Purpose — Establishes that the purposeof the subchapter is to facilitate efforts by industry or sector partnershipsto strengthen and revitalize industries and create employment opportunities forworkers in communities impacted by trade

(b)  Definitions - Defines key terms withinthe section. 

The term ”˜community impacted by trade’ is given the same meaning as the termhas under subchapter A

A ”˜dislocated worker’ is defined as a worker who has been totally orpartially separated, or is threatened with total or partial separation, in anindustry or sector in a community impacted by trade.

An ”˜eligible partnership’ is defined as a voluntary partnershipcomprised of public and private persons, firms, or other entities within acommunity impacted by trade that must include representatives of:

(A) anindustry or sector within the community, including and industry association;

(B)  local,county, or State government;

(C)  multiplefirms in the industry or sector, including small- and medium-sized firms,within the community;

(D) localworkforce boards;

(E)  labororganizations, including State labor federations and labor-managementinitiatives, representing workers in the community; and

(F)  educationalinstitutions, local educational agencies, or other training providers servingthe community.

A ”˜lead entity’ is defined as (A) an entity designated by theeligible partnership to be responsible for submitting a grant proposal andserving as the eligible partnership’s fiscal agent in expending any SectorPartnership Grant, or a state agency designated by the Governor of the State tocarry out such responsibilities.

”˜Secretary’is defined as the Secretary of Labor.

A ”˜targeted industry or sector’ is defined as the industry or sectorrepresented by an eligible partnership.

(c) Sector Partnership Grants Authorized —States that beginning on August 1, 2009 and subject to the appropriation offunds, the Secretary of Labor shall award Sector Partnership Grants to eligiblepartnerships to assist them in carrying out projects to strengthen andrevitalize industries and sectors and create employment opportunities fordislocated workers, over periods of not more than three (3) years.

(d) Use of SectorPartnership Grants — Establishes that funds may be used to carry out anyproject that the Secretary determines will further the purpose of the section,including by (among other things) identifying the skill gaps of the targetedindustry or sector and any gaps in the available supply of skilled workers inthe community impacted by trade, and developing strategies for filling the gaps;analyzing the skills and education levels of dislocated and incumbent workersand developing training to address skill gaps that prevent such workers fromobtaining jobs in the targeted industry or sector; helping firms, especiallysmall- and medium-sized firms, in the targeted industry or sector increasetheir productivity and the productivity of their workers; and identifyingadditional public and private resources to support activities, includingcommunity grants under subchapter A and Community College and Career TrainingGrants under subchapter B.

(e) Grant Proposals —

(1)  Requiresthat lead entities submit grant proposals at such time, in such manner, andcontaining such information as the Secretary may require;

(2)  Requiresthat grant proposals, at a minimum—

(A) identify themembers of the eligible partnership 

(B) identify the targeted industry or sector; 

(C) describe thegoals that the partnership intends to achieve to promote the targeted industryor sector;

(D) describe theprojects that the partnership will undertake to achieve such goals;

(E)  demonstratethat the partnership has the organizational capacity to carry out the projectdescribed in subsection (D);

(F)   explain—

(i)    whetherthe community impacted by trade has sought or received a community grant (asdescribed in subchapter A); whether an eligible institution in the communityhas sought or received a Community College and Career Training Grant; orwhether any other entity within the community has received funds pursuant toany other federally funded training project and

(ii)  how theeligible partnership will coordinate its use of a Sector Partnership Grant withthe use of such other grants to enhance the effectiveness of each grant orfunds and to avoid duplication of efforts;

(G) include performance measuresbased on performance measures issued by the Secretary under (g)(2) and atimeline for achieving the goals described in subparagraph (C).

(f) Award of Grants —

(1)  In General — Permits the Secretary toaward a Sector Partnership Grant to an eligible partnership upon application bythe lead entity.

(2)  Limitations — States that eligiblepartnerships may be not be awarded—

(A)  more thanone Sector Partnership Grant or

(B)  a totalgrant award in excess of $2.5 million or, in the case of an eligiblepartnership located in a community not served by an institution receiving aCommunity College and Career Training Grant, $3 million.

(g) Administration bythe Secretary—

(1)  Technical Assistance and Oversight - 

(A)  In General — Requires the Secretary toprovide technical assistance to the lead entity of an eligible partnership inapplying for and administering Sector Partnership Grants.

(B)  Technical Assistance — States thattechnical assistance provide under subparagraph (A) shall include conferencesand other methods of collecting and disseminating information on best practicesdeveloped by eligible partnerships/

(C)  Grants or Contracts for Technical Assistance- Allows the Secretary to award grants or contracts to one or more nationalor State organizations to provide technical assistance to eligiblepartnerships.

(2) Performance Measures — Requires theSecretary to issue a range of performance measures, with quantifiablebenchmarks, and methodologies that eligible partnerships may use to measureprogress toward the goals described in subsection (e). Requires the Secretaryto consider the benefits of the eligible partnership and its activities forworkers, firms, industries, and communities in developing such measures.

(h)   Reports— 

(1) Progress Report — Requires that not later than 1 year after receivinga Sector Partnership Grant, and 3 years thereafter, the lead entity to submitto the Secretary a report containing:

(A) a detailed description pf theprogress made towards the goals described in subsection (e)(2)(C) using theperformance measures under subsection (e)(2)(G);

(B) a detailed evaluation of theimpact of the grant award on workers and employers in the community impacted bytrade; and

(D)  a detaileddescription of all expenditures of funds awarded to the eligible partnershipunder the Sector Partnership Grant.

(2)  Annual Report — Requires the Secretaryto submit to the Senate Finance Committee and the House Ways and MeansCommittee an annual report describing:

(A) each SectorPartnership Grant awarded during the preceding fiscal year and

(B) assessing theimpact of each Sector Partnership Grant awarded in a fiscal year preceding thefiscal year referred to in subparagraph (A) on workers and employers incommunities impacted by trade.

 Section 279B. Authorization ofAppropriations —

(a)   In General - Authorizes $40 million foreach of fiscal years 2009 and 2010, and $10 million for the period beginningOctober 1, 2010 and ending December 31, 2010.

(b)  Supplement not Supplant — States thatfunds appropriated under this section shall be used to supplement and notsupplant other Federal, State ,and local funds expended to support the economicdevelopment of local communities.

(c)   Administrative Costs — Permits theSecretary to retain not more than 5 percent of funds appropriated under thissection for each fiscal year to administer the Sector Partnership GrantProgram.