H.R. 5297 — PARTNERS Act

This section states the purpose of the Act to promote registered apprenticeships and other work-based learning programs for small and medium-sized businesses in in-demand industry sectors through the establishment and support of industry or sector partnerships.

This section defines terms used in the Act. Such terms include (1) eligible partnership, meaning an industry or sector partnership as defined in section 3 of the Workforce Innovation and Opportunity Act (WIOA; 29 U.S.C. 3102) that submits and obtains approval of an application under section 5(c); (2) in-demand industry sector, meaning a sector described in WIOA section 3(23)(A)(i) and (B); (3) local or regional, meaning an entity providing services in a local area or region, respectively; (4) registered apprenticeship, meaning an apprenticeship registered under the National Apprenticeship Act (29 U.S.C. 50 et seq.); and (5) work-based learning program, meaning a program providing workers with paid work experience and corresponding classroom instruction in an employment relationship intended to lead to continuing employment, where paid work experience includes employer-provided training during productive work essential to job performance. The section further provides that other specified terms (e.g., Governor, local board, recognized postsecondary credential) have the meanings given in WIOA section 3 and defines Secretary as the Secretary of Labor.

This section directs the Secretary of Labor to reserve not more than 5% of amounts available under section 4 for technical assistance and federal administration, not more than 2% for evaluations under section 8(b), and not more than 0.25% for outlying areas; and to allot the remainder to eligible states using clauses (ii) through (v) of section 132(b)(1)(B) of the Workforce Innovation and Opportunity Act (WIOA; 29 U.S.C. 3172(b)(1)(B)(ii)-(v))—which allocates WIOA adult and youth funds to states based on relative numbers of unemployed individuals, excess unemployed, and disadvantaged adults—to support (including establishing) local or regional partnerships for work-based learning programs under this Act, subject to specified modifications. The modifications are: (1) not applying subclauses (I) and (III) of clause (iv)—which provide minimum and hold-harmless allotments—for the first fiscal year after enactment; (2) applying clause (iv)(II) by substituting "0.5 percent of the remaining amounts" for the minimum allotment amount; (3) not applying clause (iv)(IV); (4) for clause (v)(II), substituting a definition of "allotment percentage" tied to the second full fiscal year after enactment or subsequent years; and (5) for clause (v)(III), substituting "a work-based learning program carried out under this Act" for the WIOA workforce investment activities reference. Unallotted funds may be reallotted to eligible states using WIOA section 132(c) (29 U.S.C. 3173(c)). To be eligible, a state must meet WIOA unified state plan (29 U.S.C. 3112) or combined state plan (29 U.S.C. 3113) requirements and submit an application describing supported local or regional industry partnerships (including lead partners and small/medium-sized business engagement), in-demand sectors (aligned with WIOA title I plans), work-based learning or registered apprenticeship programs, target populations (including those with barriers to employment and historically underrepresented groups), services (including business engagement, classroom instruction, and at least six months of post-employment support), recognized postsecondary credentials and program quality, performance levels on section 8 indicators, leveraged resources (including WIOA title I and nonfederal funds), and other required information. The Secretary reviews applications in consultation with the Secretary of Education and Secretary of Health and Human Services.

This section requires the governor of a state receiving an allotment under section 5 to award grants to eligible local or regional industry or sector partnerships identified in the state's application under section 5(c), using unreserved funds to assist (including establishing or expanding) such partnerships in carrying out activities described in section 7. Grants are for up to three years and $500,000 each, with funds available during the allotment fiscal year or the two subsequent fiscal years; eligibility requires an application and designation of a fiscal agent; states must ensure geographic diversity among grant recipients (allowing entities to participate in multiple partnerships) and may reserve up to 5% of allotments for administration.

This section directs eligible partnerships receiving grants under section 6 to use the funds to support registered apprenticeship or other work-based learning programs, including activities to develop and implement such programs, promote participant retention and completion, and establish or expand partnerships. The section requires grant funds to support (1) business engagement activities, such as assisting small or medium-sized businesses with apprenticeship sponsor registration, connections to education providers, curriculum development, transitional employment, trainer/mentor preparation, career awareness, and recruitment from specified programs (i.e., Workforce Innovation and Opportunity Act, Supplemental Nutrition Assistance Program, and Temporary Assistance for Needy Families block grants); and (2) worker support services for at least 12 months following program placement—including connections to adult basic education or pre-apprenticeships, mentorship, tools/work attire, and transportation/child care/other needs (limited to 5% of grant funds).

This section requires each eligible partnership receiving a grant under section 6 to submit an annual local report to the state, beginning no later than one year after grant receipt, evaluating performance on core indicators under section 116(b)(2)(A) of the Workforce Innovation and Opportunity Act (WIOA)—(1) for all workers in the work-based learning program, disaggregated by populations in WIOA section 3(24), race, ethnicity, sex, and age; and (2) for individuals with barriers to employment in the program, similarly disaggregated. It further requires the state to submit an annual report to the Secretary, beginning no later than 24 months after receiving initial local reports (and in no case less than 18 months after grant awards), aggregating local report information and statewide performance levels on those indicators.

This section (1) repeals the H-1B fee-funded grant program under section 414(c) of the American Competitiveness and Workforce Improvement Act of 1998 (29 U.S.C. 3224a(c))—which provided job training and related activities for workers entering or upgrading employment in projected high-growth industries and economic sectors (e.g., those adding substantial new jobs or transformed by technology)—and (2) revises section 286(s)(2) of the Immigration and Nationality Act (8 U.S.C. 1356(s)(2)) to direct 50% of amounts deposited into the H-1B Nonimmigrant Petitioner Account to remain available to the Secretary of Labor until expended to carry out the PARTNERS Act.