SECTION 1. FINDINGS.

    Congress finds the following:
            (1) Manufacturing Extension Partnership services are 
        available in all 50 States and at 392 locations.
            (2) The Manufacturing Extension Partnership delivers 
        critical services to small and midsized manufacturers, 
        providing access to public and private resources that enhance 
        growth, improve productivity, and expand capacity.
            (3) The Manufacturing Extension Partnership helps 
        manufacturers position themselves as strong long-term 
        competitors in domestic and international markets.
            (4) Of the 7 million jobs lost in the recession as of 
        February 2009, over 2 million were from the manufacturing 
        sector, and the Manufacturing Extension Partnership reported 
        creating or retaining over 57,000 manufacturing jobs in the 
        most recent surveyed year.
            (5) The Manufacturing Extension Partnership has delivered 
        $1.44 billion in cost savings annually and $10.5 billion in 
        increased or retained sales in a single year.
            (6) Every dollar contributed by the Federal Government to 
        the Manufacturing Extension Partnership is matched 2-to-1 by 
        State and local governments and participating manufacturers.
            (7) The recession has strained many State budgets, and 23 
        State Manufacturing Extension Partnership Centers reported a 
        decrease or elimination of State funding in 2009.
            (8) When a State decreases or eliminates funding for the 
        Manufacturing Extension Partnership, the cost-share burden is 
        shifted to small manufacturers who are unlikely to be able to 
        afford increased contributions during an economic downturn, and 
        the availability of Manufacturing Extension Partnership 
        services is jeopardized.
            (9) A reduction in the matching requirement for 
        participants in the Manufacturing Extension Partnership will 
        greatly alleviate the burden on State budgets and small 
        manufacturers and preserve the Manufacturing Extension 
        Partnership's ability to provide critical services to small 
        manufacturers and create much-needed jobs in the manufacturing 
        sector.

SEC. 2. HOLLINGS MANUFACTURING EXTENSION PARTNERSHIP PROGRAM.

    Section 25(c) of the National Institute of Standards and Technology 
Act (15 U.S.C. 278k(c)) is amended--
            (1) in paragraph (1), by inserting ``, unless otherwise 
        determined under paragraph (3)(C)'' before the period at the 
        end;
            (2) in paragraph (3)--
                    (A) in subparagraph (B)--
                            (i) by striking ``not less than 50 percent 
                        of the costs incurred for the first 3 years and 
                        an increasing share for each of the last 3 
                        years'' and inserting ``the applicant's share 
                        of the costs incurred (in this subsection 
                        referred to as `cost share')''; and
                            (ii) by striking ``For purposes of the 
                        preceding sentence, the'' and inserting 
                        ``The'';
                    (B) by redesignating subparagraphs (C) and (D) as 
                subparagraphs (D) and (E), respectively;
                    (C) by inserting after subparagraph (B) the 
                following new subparagraph:
                    ``(C) The Secretary shall by rule establish 
                appropriate criteria to be considered in determining a 
                Center's cost share. A Center's cost share shall in no 
                case exceed 50 percent of the costs incurred by such 
                Center. The Secretary shall review each Center's cost 
                share annually and at such other times as the Secretary 
                considers appropriate. An adjustment to a Center's cost 
                share in a year shall not affect the amount of Federal 
                funds such Center receives in such year.''; and
                    (D) in subparagraph (D), as redesignated by 
                subparagraph (B)--
                            (i) by striking ``50 percent'' and 
                        inserting ``cost share''; and
                            (ii) by striking ``Center's contribution'' 
                        and inserting ``Center's cost share''; and
            (3) in paragraph (5)--
                    (A) in the 6th sentence, by striking ``at declining 
                levels''; and
                    (B) in the last sentence--
                            (i) by striking ``Funding'' and inserting 
                        ``Unless otherwise determined under paragraph 
                        (3)(C), funding''; and
                            (ii) by striking ``one third'' and 
                        inserting ``50 percent''.
Output: Amends the National Institute of Standards and Technology Act to reduce the matching funds requirement for participants in the Hollings Manufacturing Extension Partnership Program (providing services to small and mid-sized manufacturers) from not less than 50% of the costs incurred for the first three years and an increasing share for each of the last three years to no more than 50% of the costs incurred by a participating Regional Center for the Transfer of Manufacturing Technology. Directs the Secretary of Commerce to establish criteria to determine a Center's cost share.