(iv) is established to serve a particular
geographic region.
(B) MAJORITY OF REPRESENTATIVES.—A
majority of the representatives comprising the
consortium shall be representatives described in
subparagraph (A)(i).
(3) PRIORITY
FOR
SMALL
BUSINESSES.—In
providing grants under paragraph (1), the Secretary
of Labor shall give priority to an eligible entity if a
majority of representatives forming the entity rep-
resent small-business concerns (as defined in section
3(a) of the Small Business Act (15 U.S.C. 632(a))).
(4) 
MAXIMUM
AMOUNT
OF
GRANT.—The
amount of a grant awarded to an eligible entity
under paragraph (1) may not exceed $1,000,000 for
any fiscal year.
(b) USE OF AMOUNTS.—
(1) IN GENERAL.—The Secretary of Labor may
not award a grant under subsection (a) to an eligible
entity unless such entity agrees to use amounts re-
ceived from such grant to improve the job skills nec-
essary for employment by businesses in the industry
with respect to which such entity was established.
(2) CONDUCT OF PROGRAM.—
(A) IN
GENERAL.—In carrying out the
program described in paragraph (1), the eligible
entity may provide for—
(i) an assessment of training and job
skill needs for the industry;
(ii) the development of a sequence of
skill standards that are benchmarked to
advanced industry practices;
(iii) the development of curriculum
and training methods, including, where ap-
propriate, e-learning or technology-based
training;
(iv) the purchase, lease, or receipt of
donations of training equipment;
(v) the identification of training pro-
viders and the development of partnerships
between the industry and educational insti-
tutions, including community colleges;
(vi) the development of apprenticeship
programs;
(vii) the development of training pro-
grams for workers, including dislocated
workers;
(viii) the development of training
plans for businesses; and
(ix) the development of the member-
ship of the entity.
(B) ADDITIONAL REQUIREMENT.—In car-
rying out the program described in paragraph
(1), the eligible entity shall provide for the de-
velopment and tracking of performance outcome
measures for the program and the training pro-
viders involved in the program.
(3) ADMINISTRATIVE COSTS.—The eligible enti-
ty may use not more than 10 percent of the amount
of a grant to pay for administrative costs associated
with the program described in paragraph (1).
(c) REQUIREMENT OF MATCHING FUNDS.—
(1) IN GENERAL.—The Secretary of Labor may
not award a grant under subsection (a) 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 Fed-
eral funds provided under the grant, of which—
(A) $1 shall be provided by the businesses
participating in the entity; and
(B) $1 shall be provided by the State or
local government involved.
(2) OTHER CONTRIBUTIONS.—
(A) 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 paragraph (1).
(B) LIMITATION.—An eligible entity may
not include in-kind contributions in complying
with the requirement of paragraph (1). The
Secretary of Labor may consider such dona-
tions in ranking applications.
(d) LIMIT
ON ADMINISTRATIVE EXPENSES.—The
Secretary of Labor may use not more than 5 percent of
the amounts made available to carry out this section to
pay the Federal administrative costs associated with
awarding grants under this section.
(e) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this section
$50,000,000 for each of fiscal years 2002, 2003, and
2004, and such sums as are necessary for each fiscal year
thereafter.
SEC. 3. GRANTS FOR REGIONAL SKILLS ALLIANCE PLAN-
NING.
(a) AUTHORIZATION.—
(1) IN GENERAL.—The Secretary of Labor, in
consultation with the Secretary of Commerce, shall
award grants to States to enable such States to as-
sist businesses, organizations, and agencies de-
scribed in section 2(a)(2) in conducting planning to
form consortia described in such section.
(2) 
MAXIMUM
AMOUNT
OF
GRANT.—The
amount of a grant awarded to a State under para-
graph (1) may not exceed $500,000 for any fiscal
year.
(b) APPLICATION.—The Secretary of Labor may not
award a grant under subsection (a) 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.
(c) REQUIREMENT OF MATCHING FUNDS.—The Sec-
retary of Labor may not award a grant under subsection
(a) to a State unless such State agrees that it will make
available non-Federal contributions toward the costs of
carrying out activities under this section in an amount
that is not less than $1 for each $1 of Federal funds pro-
vided under the grant.
(d) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this section
$5,000,000 for fiscal year 2002.
SEC. 4. GRANTS FOR SUPPORT OF BUSINESS INCUBATOR
ACTIVITIES.
(a) PURPOSE.—It is the purpose of this section to
encourage entrepreneurial creativity and risk taking
through the support of the furnishing of business incu-
bator services for newly established small businesses and
medium-sized businesses.
(b) GRANT PROGRAM.—To achieve the purpose of
this section, the Secretary of Commerce shall carry out
a program to provide, through grants, financial assistance
for the establishment and support of entities that provide
business incubator services in support of the initiation and
initial sustainment of business activities by newly estab-
lished small businesses and medium-sized businesses.
(c) AWARDS OF GRANTS.—
(1) ELIGIBILITY
REQUIREMENTS.—The Sec-
retary shall prescribe the eligibility requirements for
the awarding of grants under this section.
(2) COMPETITIVE SELECTION.—The Secretary
shall use a competitive process for the awarding of
grants under this section and, under that process,
select recipients of the grants on the basis of merit,
with priority given to underserved rural and urban
communities.