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 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 overwhelmingly 
        comprised of firms with 50 or fewer employees;
            (4) the textile machinery industry is one of 92 industries 
        in the United States considered essential to our defense needs;
            (5) 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;
            (6) 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;
            (7) 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;
            (8) such erosion of the textile machinery industry will 
        result in loss of tariff revenue to the Treasury of the United 
        States;
            (9) the textile industry is among the largest five 
        employers in the country;
            (10) 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;
            (11) over the last two decades, employment in the textile 
        machinery industry has shrunk from 28,500 individuals to 
        17,800;
            (12) recapturing the textile machinery market will be a 
        positive contribution to the balance of trade;
            (13) trade impacted businesses should have direct access to 
        capital from the source of subsidized competition; and
            (14) 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, 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 (3) and (4) 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) Statements of intent.--The Secretary may in advance 
        of any qualified organization commencing a qualified research 
        project, provide to such organization a statement indicating 
        the Secretary's intent to make one or more grants to such 
        organization for the purpose of funding one or more qualified 
        research projects.
            ``(3) 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.
            ``(4) 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 is limited to expenditures above 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 the 
        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 equitably prorated.
    ``(e) Appropriations to Fund.--
            ``(1) In general.--There is appropriated to the Fund for 
        each fiscal year after fiscal year 1993, 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 (c)(2).
            ``(2) Limitation.--The aggregate amount of monies in the 
        Fund during any fiscal year may not exceed $10,000,000.''.
Amends the Tariff Act of 1930 to establish in the Treasury the Textile Machinery Modernization Fund.  Appropriates to such fund revenues from customs duties imposed on textile machinery and parts imported into the United States in order to provide grants for research projects for the modernization of the U.S. textile machinery industry.
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.