HR 5936 IH
101st CONGRESS
2d Session
 H. R. 5936
To amend the Tariff Act of 1930 to require that certain revenues attributable
to tariffs levied on imports of textile machinery and parts thereof be
applied to support research for the modernization of the American textile
machinery industry.
IN THE HOUSE OF REPRESENTATIVES
October 26, 1990
Mr. BALLENGER introduced the following bill; which was referred jointly to
the Committees on Ways and Means and Banking, Financial and Urban Affairs
A BILL
To amend the Tariff Act of 1930 to require that certain revenues attributable
to tariffs levied on imports of textile machinery and parts thereof be
applied to support research for the modernization of the American textile
machinery industry.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. CONGRESSIONAL FINDINGS.
  The Congress finds that--
  (1) since the late 18th century, the United States textile machinery
  industry has played an important role in the development of the world
  textile industry;
  (2) the United States textile machinery industry currently consists of
  approximately 500 companies, primarily small businesses, producing finished
  machinery, parts and accessories used in the production of textile mill
  products for apparel, defense, furniture and industrial application;
  (3) the textile machinery industry is one of 92 industries in the United
  States considered essential to our defense needs;
  (4) during the last decade, the textile machinery industry has been among
  those industries most weakened due to a dramatic rise in imports and
  foreign trade barriers which thwart United States exports;
  (5) further erosion of the textile machinery industry will expose the
  United States textile and apparel complex to offshore pricing, delivery
  and service resulting in less competition and limited choice;
  (6) shipments of textile machinery, parts and accessories were approximately
  26 percent lower in 1988 than in 1980, while imports rose by an astounding
  100 percent during this same period;
  (7) such erosion of the textile machinery industry will result in loss of
  tariff revenue to the Treasury of the United States;
  (8) the textile industry is among the largest five employers in the country;
  (9) there are many economic benefits of the textile machinery industry,
  including tariffs on imports, corporate and employee taxes, preservation
  of jobs and small businesses, industrial growth, manufacturing skills,
  maintenance of basic industries, increased exports, and a lower trade
  deficit;
  (10) over the last two decades, employment in the textile machinery industry
  has shrunk from 28,500 individuals to 17,800;
  (11) recapturing the textile machinery market will be a positive contribution
  to the balance of trade;
  (12) trade impacted businesses that have earned working capital should
  have direct access to such capital from the source of the subsidized
  competition; and
  (13) government studies recommend that research and development programs
  be developed to help sustain and expand the textile machinery industry.
SEC. 2. TEXTILE MACHINERY MODERNIZATION FUND.
  Part I of title III of the Tariff Act of 1930 (19 U.S.C. 1303-1323) is
  amended by inserting after section 323 the following new section:
`SEC. 324. TEXTILE MACHINERY MODERNIZATION FUND.
  `(a) DEFINITIONS- For purposes of this section:
  `(1) The term `Fund' means the Textile Machinery Modernization Fund
  established under subsection (b).
  `(2) The term `qualified organization' means any entity organized under the
  laws of the United States with principal manufacturing facilities located
  in the United States that manufactures and markets any of the following
  for utilization by the textile industry worldwide:
  `(A) Machinery.
  `(B) Parts.
  `(C) Accessories.
  `(D) Related systems.
  `(3) The term `qualified research project' means a research project,
  conducted within the United States, for machinery and equipment used
  predominantly, if not exclusively, by the textile industry, or for major
  capital expenditure items of the textile industry.
  `(4) The term `Secretary' means the Secretary of Commerce.
  `(5) The term `textile machinery and parts thereof includes all articles
  provided for in subheadings 8420.10.10, 8420.91.10, 8420.99.10, 8443.50.10,
  8443.50.10, and 8443.90.10 and in headings 8444 through 8449 of the
  Harmonized Tariff Schedule of the United States and all textile machinery and
  parts thereof provided for in headings 8450 through 8452 of such Schedule.
  `(b) ESTABLISHMENT OF FUND- There is established in the Treasury of the
  United States the Textile Machinery Modernization Fund. The Fund consists
  of such amounts as may be appropriated to it.
  `(c) PURPOSES OF FUND- Monies in the Fund shall be available, as provided
  for in advance in appropriation Acts, for--
  `(1) grants made in accordance with subsection (d) to qualified organizations
  to assist such organizations to carry out qualified research projects; and
  `(2) the administration of this section, and the carrying out of textile
  machine industry-wide research and promotion, by the Secretary.
  `(d) GRANTS-
  `(1) IN GENERAL- Subject to paragraphs (2) and (3) and to such terms
  and conditions (including those necessary to protect the interests of
  the United States) as the Secretary shall by regulation prescribe, the
  Secretary may make one or more grants to any qualified organization for
  the purpose of reimbursing that organization for costs incurred by it in
  carrying out one or more qualified research projects.
  `(2) CONSULTATION AND DETERMINATIONS REGARDING APPLICATIONS- The Secretary
  must--
  `(A) make grants under this section in consultation with appropriate
  representatives from the textile and textile machinery industries and the
  public; and
  `(B) make a determination whether or not to award any grant under this
  section within 12 months after the grant is applied for.
  `(3) LIMITATIONS- (A) No grant made under this section with respect to a
  qualified research project may exceed 60 percent of the cost of the project.
  `(B) The aggregate amount of the grant or grants made to a qualified
  organization under this section during any fiscal year may not exceed
  an amount equal to that organization's base line average of annual
  expenditures during the 3 previous fiscal years for qualifying textile
  machinery research, development, and product engineering, as defined in
  section 174 of the Internal Revenue Code of 1986. Grants awarded under
  this section shall be excluded from baseline calculations.
  `(C) If the total amount of monies available in the Fund for the payment
  of grants for a fiscal year is less than that total amount of the grants
  approved for disbursement under this section for that fiscal year, the
  amount of the grants paid during such year shall be appropriately prorated.
  `(e) APPROPRIATIONS TO FUND-
  `(1) IN GENERAL- There is appropriated to the Fund for each fiscal year
  after fiscal year 1991, from the revenues attributable to the customs
  duties imposed on textile machinery and parts thereof imported into the
  United States during the preceding fiscal year, the greater of--
  `(A) an amount equal to 10 percent of such revenues; or
  `(B) $10,000,000;
of which not to exceed $500,000 shall be available for the purposes specified
in subsection (b)(2).
  `(2) LIMITATION- The aggregate amount of monies in the Fund during any
  fiscal year may not exceed $10,000,000.'.