I 

108TH CONGRESS 

2D SESSION H. R. 4177 

To establish a Manufacturing and Technology Administration to promote 

and assist American manufacturers, to provide incentives to American 

manufacturers, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 20, 2004 

Mr. LARSON of Connecticut (for himself, Ms. DELAURO, Mr. FROST, Mr. 

GREEN of Texas, Mr. HOLDEN, and Mr. BRADY of Pennsylvania) introduced the following bill; which was referred to the Committee on Ways 

and Means, and in addition to the Committees on Science, Financial 

Services, International Relations, Government Reform, and Rules, for a 

period to be subsequently determined by the Speaker, in each case for 

consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To establish a Manufacturing and Technology Administration 

to promote and assist American manufacturers, to provide incentives to American manufacturers, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘American Workers and 

5 Manufacturers Support Act’’. 
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1 SEC. 2. TABLE OF CONTENTS. 

2 The table of contents for this Act is as follows: 

Sec. 1. Short title. 

Sec. 2. Table of contents. 

TITLE I—ESTABLISHMENT OF MANUFACTURING AND 

TECHNOLOGY ADMINISTRATION 

Sec. 101. Manufacturing and Technology Administration. 

Sec. 102. Study of abusive practices by large manufacturers and retailers. 

Sec. 103. Study of feasibility of labeling requirements. 

Sec. 104. Studies by National Academy of Sciences. 

Sec. 105. Manufacturing research and implementation; development of new 

manufacturing technologies. 

Sec. 106. Advanced Technology Program. 

TITLE II—WTO DISPUTE SETTLEMENT REVIEW COMMISSION 

Sec. 201. Establishment of Commission. 

Sec. 202. Duties of the Commission. 

Sec. 203. Powers of the Commission. 

Sec. 204. Review of dispute settlement procedures and participation in the 

WTO. 

Sec. 205. Participation in WTO panel proceedings. 

Sec. 206. Definitions. 

TITLE III—REFORM OF EXPORT-IMPORT BANK AND OVERSEAS 

PRIVATE INVESTOR CORPORATION 

Sec. 301. Restrictions on Export-Import Bank assistance. 

Sec. 302. Restrictions on the Overseas Private Investment Corporation. 

TITLE IV—CURRENCY MANIPULATION 

Sec. 401. Negotiation period regarding currency manipulation. 

Sec. 402. Findings of fact and report regarding currency manipulation. 

Sec. 403. Proceedings regarding currency manipulation. 

Sec. 404. Additional reports and recommendations. 

Sec. 405. Currency manipulation defined. 

TITLE V—INTERNAL REVENUE CODE AMENDMENTS 

Sec. 501. Disincentivization of corporate expatriation to avoid United States income tax. 

Sec. 502. Inclusion of income from U.S. imports in subpart F income. 

Sec. 503. Denial of treaty benefits for certain deductible payments. 

Sec. 504. Repeal of exclusion for extraterritorial income. 

Sec. 505. Deduction relating to income attributable to United States production 

activities. 

TITLE VI—BUY AMERICAN PROVISIONS 

Sec. 601. Requirements for waivers. 

Sec. 602. GAO report and recommendations. 

Sec. 603. Dual use technologies. 
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TITLE VII—ESTABLISHMENT OF CONGRESSIONAL TRADE OFFICE 

Sec. 701. Findings. 

Sec. 702. Establishment of office. 

Sec. 703. Public access to data. 

Sec. 704. Authorization of appropriations. 

1 TITLE I—ESTABLISHMENT OF 

2 MANUFACTURING AND TECH3 NOLOGY ADMINISTRATION 

4 SEC. 101. MANUFACTURING AND TECHNOLOGY ADMINIS5 TRATION. 

6 Section 5 of the Stevenson-Wydler Technology Inno7 vation Act of 1980 (15 U.S.C. 3704) is amended to read 

8 as follows: 

9 ‘‘SEC. 5. MANUFACTURING AND TECHNOLOGY. 

10 ‘‘(a) ESTABLISHMENT.—There is established in the 

11 Department of Commerce a Manufacturing and Tech12 nology Administration, which shall operate in accordance 

13 with the provisions, findings, and purposes of this Act. 

14 The Manufacturing and Technology Administration shall 

15 include— 

16 ‘‘(1) the National Institute of Standards and 

17 Technology; 

18 ‘‘(2) the National Technical Information Serv19 ice; and 

20 ‘‘(3) a policy analysis office, which shall be 

21 known as the Office of Manufacturing and Tech22 nology Policy. 
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1 ‘‘(b) UNDER SECRETARY AND ASSISTANT SECRE2 TARIES.—The President shall appoint, by and with the ad3 vice and consent of the Senate, to the extent provided for 

4 in appropriations Acts— 

5 ‘‘(1) an Under Secretary of Commerce for Man6 ufacturing and Technology, who shall be com7 pensated at the rate provided for level III of the Ex8 ecutive Schedule in section 5314 of title 5, United 

9 States Code; 

10 ‘‘(2) an Assistant Secretary of Manufacturing 

11 who shall serve as a policy analyst for the Under 

12 Secretary; and 

13 ‘‘(3) an Assistant Secretary of Technology who 

14 shall serve as a policy analyst for the Under Sec15 retary. 

16 ‘‘(c) DUTIES.—The Secretary, through the Under 

17 Secretary, as appropriate, shall— 

18 ‘‘(1) manage the Manufacturing and Tech19 nology Administration and supervise its agencies, 

20 programs, and activities; 

21 ‘‘(2) conduct manufacturing and technology pol22 icy analyses to improve United States industrial pro23 ductivity, manufacturing capabilities, and innova24 tion, and cooperate with United States industry to 

25 improve its productivity, manufacturing capabilities, 
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1 and ability to compete successfully in an inter2 national marketplace; 

3 ‘‘(3) identify manufacturing and technological 

4 needs, problems, and opportunities within and across 

5 industrial sectors, that, if addressed, could make sig6 nificant contributions to the economy of the United 

7 States; 

8 ‘‘(4) assess whether the capital, technical, and 

9 other resources being allocated to domestic indus10 trial sectors which are likely to generate new tech11 nologies are adequate to meet private and social de12 mands for goods and services and to promote pro13 ductivity and economic growth; 

14 ‘‘(5) propose and support studies and policy ex15 periments, in cooperation with other Federal agen16 cies, to determine the effectiveness of measures for 

17 improving United States manufacturing capabilities 

18 and productivity; 

19 ‘‘(6) provide that cooperative efforts to stimu20 late industrial competitiveness and innovation be un21 dertaken between the Under Secretary and other of22 ficials in the Department of Commerce responsible 

23 for such areas as trade and economic assistance; 

24 ‘‘(7) encourage and assist the creation of cen25 ters and other joint initiatives by State or local gov-
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1 ernments, regional organizations, private businesses, 

2 institutions of higher education, nonprofit organiza3 tions, or Federal laboratories to encourage tech4 nology transfer, to encourage innovation, and to pro5 mote an appropriate climate for investment in tech6 nology-related industries; 

7 ‘‘(8) propose and encourage cooperative re8 search involving appropriate Federal entities, State 

9 or local governments, regional organizations, colleges 

10 or universities, nonprofit organizations, or private 

11 industry to promote the common use of resources, to 

12 improve training programs and curricula, to stimu13 late interest in manufacturing and technology ca14 reers, and to encourage the effective dissemination 

15 of manufacturing and technology skills within the 

16 wider community; 

17 ‘‘(9) serve as a focal point for discussions 

18 among United States companies on topics of interest 

19 to industry and labor, including discussions regard20 ing manufacturing, competitiveness, and emerging 

21 technologies; 

22 ‘‘(10) consider government measures with the 

23 potential of advancing United States technological 

24 innovation and exploiting innovations of foreign ori-
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1 gin and publish the results of studies and policy ex2 periments; and 

3 ‘‘(11) assist in the implementation of the Metric 

4 Conversion Act of 1975 (15 U.S.C. 205a et seq.). 

5 ‘‘(d) MANUFACTURING ADVISORY BOARD.— 

6 ‘‘(1) ESTABLISHMENT AND COMPOSITION.— 

7 There is established a Manufacturing Advisory 

8 Board within the Manufacturing and Technology 

9 Administration. The Under Secretary or the Assist10 ant Secretary of Manufacturing shall chair the Advi11 sory Board. The Advisory Board shall be composed 

12 of 14 additional members appointed by the Under 

13 Secretary as follows: 

14 ‘‘(A) 1 representative each from the Na15 tional Association of Manufacturers, the Na16 tional Coalition for Advanced Manufacturing, 

17 and the Modernization Forum. 

18 ‘‘(B) 4 members from outside the Federal 

19 Government who are eminent in the manufac20 turing industry, at least 2 of whom are rep21 resentatives of small and medium-sized compa22 nies in such industries. 

23 ‘‘(C) 4 members from Federal agencies 

24 who have manufacturing science and technology 

25 expertise, at least 1 of whom shall be from the 
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1 National Institute of Standards and Tech2 nology. 

3 ‘‘(D) 3 members from labor unions, a ma4 jority of whose members have manufacturing 

5 jobs. 

6 ‘‘(2) DUTIES.—The duties of the Advisory 

7 Board shall be— 

8 ‘‘(A) to identify manufacturing issues rel9 ative to manufacturing technology and competi10 tiveness; 

11 ‘‘(B) to advise the Under Secretary on 

12 manufacturing issues, including manufacturing 

13 activities at the National Institute of Standards 

14 and Technology, and make recommendations 

15 for actions by the Federal Government; and 

16 ‘‘(C) to report its finding and rec17 ommendations to the Under Secretary and the 

18 Director of the Office of Management and 

19 Budget. 

20 ‘‘(3) TERMS OF OFFICE.—The term of office of 

21 each member of the Advisory Board shall be 4 years, 

22 except that— 

23 ‘‘(A) of the initial members, 3 shall be ap24 pointed for terms of 1 year, 3 shall be ap25 pointed for terms of 2 years, 4 shall be ap-
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1 pointed for terms of 3 years, and 4 shall be ap2 pointed for terms of 4 years; and 

3 ‘‘(B) any member appointed to fill a va4 cancy in the Advisory Board shall serve for the 

5 remainder of the term for which his predecessor 

6 was appointed. 

7 ‘‘(4) QUORUM.—The Advisory Board shall not 

8 act in the absence of a quorum, which shall consist 

9 of 8 members. 

10 ‘‘(5) ALLOWANCE FOR TRAVEL EXPENSES.— 

11 Members of the Advisory Board, other than full-time 

12 employees of the Federal Government, while attend13 ing meetings of the Board or while otherwise per14 forming duties at the request of the Chairman while 

15 away from their home or a regular place of business, 

16 may be allowed travel expenses in accordance with 

17 subchapter I of chapter 57 of title 5, United States 

18 Code. 

19 ‘‘(6) STAFF SERVICES AND UTILIZATION OF

20 FEDERAL PERSONNEL.—To provide the staff serv21 ices necessary to assist the Advisory Board in car22 rying out its functions, the Advisory Board may uti23 lize personnel from the National Institute of Stand24 ards and Technology or any other agency of the 
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1 Federal Government with the consent of the head of 

2 the agency. 

3 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 

4 are authorized to be appropriated to the Secretary for the 

5 activities of the Under Secretary— 

6 ‘‘(1) $2,000,000 for fiscal year 2004; 

7 ‘‘(2) $2,070,000 for fiscal year 2005; 

8 ‘‘(3) $2,140,000 for fiscal year 2006; and 

9 ‘‘(4) $2,220,000 for fiscal year 2007.’’. 

10 SEC. 102. STUDY OF ABUSIVE PRACTICES BY LARGE MANU11 FACTURERS AND RETAILERS. 

12 (a) STUDY.—The Under Secretary of Commerce for 

13 Manufacturing and Technology (appointed pursuant to 

14 section 101 of this title) shall conduct a study of practices 

15 by large manufacturers and retailers whereby such manu16 facturers and retailers place large contract orders and 

17 later cancel such orders after only a portion of the goods 

18 or services are provided, and the impact that such prac19 tices have on small businesses. 

20 (b) REPORT.—Not later than 1 year after the date 

21 of enactment of this title, the Under Secretary of Com22 merce for Manufacturing and Technology shall transmit 

23 a report to the Congress on the findings of the study re24 quired by subsection (a). The report shall propose guide25 lines to address abusive practices and recommendations 
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1 for a means to allow small manufacturers to confidentially 

2 report such practices. 

3 SEC. 103. STUDY OF FEASIBILITY OF LABELING REQUIRE4 MENTS. 

5 (a) STUDY.—The Under Secretary of Commerce for 

6 Manufacturing and Technology (appointed pursuant to 

7 section 101 of this title) shall conduct a study of the feasi8 bility and impact of laws or regulations requiring all prod9 ucts retailing at more than $15 to state clearly on the 

10 labels the percentage of components made in the United 

11 States. 

12 (b) REPORT.—Not later than 1 year after the date 

13 of enactment of this title, the Under Secretary of Com14 merce for Manufacturing and Technology shall transmit 

15 a report to the Congress on the findings of the study re16 quired by subsection (a). The report shall examine the cost 

17 of such a labeling requirement to manufacturers and con18 sumers, shall include recommendations for any necessary 

19 legislation, and shall propose a timetable for implementa20 tion of such requirements. 

21 SEC. 104. STUDIES BY NATIONAL ACADEMY OF SCIENCES. 

22 Section 24 of the National Institute of Standards and 

23 Technology Act (15 U.S.C. 278j) is amended— 

24 (1) by striking ‘‘The Director may’’ through 

25 ‘‘assist the’’ and inserting ‘‘The Under Secretary of 
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1 Commerce for Manufacturing and Technology and 

2 the Director may periodically enter into an arrange3 ment with the National Academy of Sciences for ad4 vice and studies to assist the Manufacturing and 

5 Technology Administration and the’’; and 

6 (2) in paragraph (2) by inserting ‘‘the Manu7 facturing and Technology Administration and’’ after 

8 ‘‘potential activities of’’. 

9 SEC. 105. MANUFACTURING RESEARCH AND IMPLEMENTA10 TION; DEVELOPMENT OF NEW MANUFAC11 TURING TECHNOLOGIES. 

12 (a) NATIONAL INSTITUTES OF STANDARDS AND

13 TECHNOLOGY LABORATORY ACTIVITIES.—There are au14 thorized to be appropriated to the Secretary of Commerce 

15 for Manufacturing Engineering activities at the Scientific 

16 and Technical Research and Services Laboratory of the 

17 National Institute of Standards and Technology— 

18 (1) $60,000,000 for fiscal year 2004, of which 

19 $30,000,000 shall be for the research and develop20 ment program on manufacturing under section 33 of 

21 the National Institute of Standards and Technology 

22 Act; 

23 (2) $62,100,000 for fiscal year 2005, of which 

24 $31,050,000 shall be for the research and develop25 ment program on manufacturing under section 33 of 
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1 the National Institute of Standards and Technology 

2 Act; 

3 (3) $64,270,000 for fiscal year 2006, of which 

4 $32,140,000 shall be for the research and develop5 ment program on manufacturing under section 33 of 

6 the National Institute of Standards and Technology 

7 Act; and 

8 (4) $68,850,000 for fiscal year 2007, of which 

9 $33,260,000 shall be for the research and develop10 ment program on manufacturing under section 33 of 

11 the National Institute of Standards and Technology 

12 Act. 

13 (b) NATIONAL INSTITUTES OF STANDARDS AND

14 TECHNOLOGY RESEARCH AND DEVELOPMENT PRO15 GRAM.—The National Institute of Standards and Tech16 nology Act is amended— 

17 (1) by redesignating the first section 32 as sec18 tion 34 and moving it to the end of the Act; and 

19 (2) by inserting before the section moved by 

20 paragraph (1) the following new section: 

21 ‘‘SEC. 33. RESEARCH AND DEVELOPMENT PROGRAM ON 

22 MANUFACTURING. 

23 ‘‘(a) ESTABLISHMENT.—The Director shall establish 

24 a program of assistance to institutions of higher education 

25 or nonprofit research institutions that enter into partner-
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1 ships with for-profit entities to support, promote, and en2 hance manufacturing research and development. The pro3 gram shall— 

4 ‘‘(1) include multidisciplinary research; and 

5 ‘‘(2) include research directed toward address6 ing the needs identified through the Under Secretary 

7 of Commerce for Manufacturing and Technology, 

8 the Office of Manufacturing and Technology Policy, 

9 and the Manufacturing Advisory Board. 

10 ‘‘(b) FELLOWSHIPS.—In order to promote the devel11 opment of a robust research community working at the 

12 leading edge of manufacturing sciences, the Director shall 

13 establish a program to award— 

14 ‘‘(1) postdoctoral research fellowships to indi15 viduals who are seeking research positions at institu16 tions, including the Institute, engaged in research 

17 activities related to manufacturing sciences; and 

18 ‘‘(2) senior research fellowships to individuals 

19 seeking research positions at institutions, including 

20 the Institute, engaged in research activities related 

21 to manufacturing sciences. To be eligible for an 

22 award under this subsection, an individual shall sub23 mit an application to the Director at such time, in 

24 such manner, and containing such information as 

25 the Director may require. Under this subsection, the 
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1 Director shall provide stipends for postdoctoral re2 search fellowships at a level consistent with the In3 stitute’s Post Doctoral Research Fellowship Pro4 gram, and senior research fellowships at levels con5 sistent with support for a faculty member in a sab6 batical position. 

7 ‘‘(c) AWARDS, APPLICATIONS.—The Director is au8 thorized to award grants or cooperative agreements to in9 stitutions of higher education to carry out the program 

10 established under subsection (a). To be eligible for an 

11 award under such subsection, an institution shall submit 

12 an application to the Director at such time, in such man13 ner, and containing such information as the Director may 

14 require. The application shall include, at minimum, a de15 scription of how the for-profit entities and any other part16 ners will participate in developing and carrying out the 

17 research agenda of the partnership. 

18 ‘‘(d) PROGRAM OPERATION.—(1) The program es19 tablished under subsection (a) shall be managed by indi20 viduals who have expertise in research related to manufac21 turing technology. The Director shall designate such indi22 viduals program managers. 

23 ‘‘(2) Program managers designated under paragraph 

24 (1) may be new or existing employees of the Institute or 
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1 individuals on assignment at the Institute under the Inter2 governmental Personnel Act of 1970. 

3 ‘‘(3) Program managers designated under paragraph 

4 (1) shall be responsible for— 

5 ‘‘(A) establishing and publicizing the broad re6 search and development goals for the program; 

7 ‘‘(B) soliciting applications for specific research 

8 projects to address the goals developed under sub9 paragraph (A); and 

10 ‘‘(C) selecting research projects for support 

11 under the program from among applications sub12 mitted to the Institute, following consideration of— 

13 ‘‘(i) the novelty and scientific and technical 

14 merit of the proposed projects; 

15 ‘‘(ii) the demonstrated capabilities of the 

16 individual or individuals submitting the applica17 tions to successfully carry out the proposed re18 search; 

19 ‘‘(iii) the impact the proposed projects will 

20 have on increasing the number of individuals 

21 with research expertise in manufacturing 

22 sciences; and 

23 ‘‘(iv) the nature of the participation by for24 profit entities and the extent to which the pro25 posed projects address the concerns of industry. 
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1 ‘‘(e) REVIEW OF PROGRAM.—The Director shall 

2 enter into an arrangement with the National Academy of 

3 Sciences for a comprehensive review of the program estab4 lished under subsection (a) during the third year of the 

5 program. Such review shall include an assessment of the 

6 quality and utility of the research conducted and the rel7 evance of the research results obtained to the goals of the 

8 program. The Director shall submit a report to Congress 

9 on the results of the review under this subsection not later 

10 than 4 years after the initiation of the program. 

11 ‘‘(f) DEFINITION.—For the purposes of this section 

12 the term ‘institution of higher education’ has the meaning 

13 given that term in section 101 of the Higher Education 

14 Act of 1965 (20 U.S.C. 1001).’’. 

15 SEC. 106. ADVANCED TECHNOLOGY PROGRAM. 

16 (a) AUTHORIZATION OF APPROPRIATIONS.—There 

17 are authorized to be appropriated to the Secretary of Com18 merce for the Advanced Technology Program under sec19 tion 28 of the National Institute of Standards and Tech20 nology Act (15 U.S.C. 278n)— 

21 (1) $219,400,000 for fiscal year 2004, includ22 ing $80,700,000 for new awards, of which 

23 $20,000,000 shall be for a focused competition in 

24 manufacturing sciences; 
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1 (2) $262,900,000 for fiscal year 2005, includ2 ing $80,700,000 for new awards, of which 

3 $20,000,000 shall be for a focused competition in 

4 manufacturing sciences; 

5 (3) $280,900,000 for fiscal year 2006, includ6 ing $80,700,000 for new awards, of which 

7 $20,000,000 shall be for a focused competition in 

8 manufacturing sciences; and 

9 (4) $290,400,000 for fiscal year 2007, includ10 ing $80,700,000 for new awards, of which 

11 $20,000,000 shall be for a focused competition in 

12 manufacturing sciences. 

13 (b) UNIVERSITY LEADERSHIP OF JOINT VEN14 TURES.— 

15 (1) JOINT VENTURE AID.—Section 28(b)(1) of 

16 the National Institute of Standards and Technology 

17 Act (15 U.S.C. 278n(b)(1)) is amended by striking 

18 ‘‘industry-led United States’’ and all that follows 

19 through ‘‘organizations)’’ and inserting ‘‘joint ven20 tures’’. 

21 (2) DEFINITION.—Section 28(j)(1) of the Na22 tional Institute of Standards and Technology Act 

23 (15 U.S.C. 278n(j)(1)) is amended by striking ‘‘two 

24 or more persons’’ and inserting ‘‘a combination of 

25 two or more persons (which shall include at least 
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1 two companies, each of which participates substan2 tially in the joint venture, and may include one or 

3 more institutions of higher education or nonprofit 

4 organizations)’’. 

5 (c) INTELLECTUAL PROPERTY RIGHTS OWNER6 SHIP.—Section 28(d)(11) of the National Institute of 

7 Standards and Technology Act (15 U.S.C. 278n(d)(11)) 

8 is amended by striking ‘‘(11)(A)’’ and all that follows 

9 through ‘‘with such intellectual property.’’ and inserting 

10 the following: 

11 ‘‘(11)(A) Title to any intellectual property de12 veloped by a joint venture from assistance provided 

13 under this section may vest in any participant in the 

14 joint venture, as agreed by the members of the joint 

15 venture, notwithstanding section 202(a) and (b) of 

16 title 35, United States Code. The United States may 

17 reserve a nonexclusive, nontransferable, irrevocable, 

18 paid-up license, to have practiced for or on behalf of 

19 the United States in connection with any such intel20 lectual property, but shall not, in the exercise of 

21 such license, publicly disclose proprietary informa22 tion related to the license. Title to any such intellec23 tual property shall not be transferred or passed, ex24 cept to a participant in the joint venture, until the 
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1 expiration of the first patent obtained in connection 

2 with such intellectual property.’’. 

3 (d) BARRIERS TO PRODUCT DEVELOPMENT.—Sec4 tion 28(d) of the National Institute of Standards and 

5 Technology Act (15 U.S.C. 278n(d)) is amended by add6 ing at the end the following new paragraph: 

7 ‘‘(12) No contract or award may be made under 

8 this section for any project unless the project may 

9 remove a scientific or technological barrier to prod10 uct development.’’. 

11 (e) PROJECT REVIEW AND EVALUATION.—Section 

12 28(g) of the National Institute of Standards and Tech13 nology Act (15 U.S.C. 278n(g)) is amended to read as 

14 follows: 

15 ‘‘(g) INDUSTRY AND PEER REVIEW OF PRO16 POSALS.—(1) In order to analyze the need for or the value 

17 of any proposal made by a joint venture or company re18 questing the Secretary’s assistance under this section, or 

19 to monitor the progress of any project which receives 

20 funds under this section, the Secretary, the Under Sec21 retary of Commerce for Manufacturing and Technology, 

22 and the Director may, notwithstanding any other provision 

23 of law, meet with such industry and other expert sources, 

24 without a proprietary or financial interest in proposals 

25 being evaluated, as they consider useful and appropriate. 
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1 ‘‘(2) In order to better assess whether specific innova2 tions to be pursued are being adequately supported by the 

3 private sector, the Director shall conduct a study of, and 

4 thereafter monitor, whether the Secretary, the Undersec5 retary of Commerce for Manufacturing and Technology, 

6 and the Director could benefit from advice and informa7 tion from additional industry and other expert sources, 

8 without a proprietary or financial interest in proposals 

9 being evaluated. Not later than one year after the date 

10 of the enactment of this Act, and biennially thereafter, the 

11 Director shall transmit to the Congress a report con12 taining the results of the study and monitoring under this 

13 paragraph.’’. 

14 TITLE II—WTO DISPUTE SETTLE15 MENT REVIEW COMMISSION 

16 SEC. 201. ESTABLISHMENT OF COMMISSION. 

17 (a) ESTABLISHMENT.—There is established a com18 mission to be known as the WTO Dispute Settlement Re19 view Commission (in this title referred to as the ‘‘Commis20 sion’’). 

21 (b) MEMBERSHIP.— 

22 (1) COMPOSITION.—The Commission shall be 

23 composed of 5 members, all of whom shall be judges 

24 of the Federal judicial circuits and shall be ap25 pointed by the President, after consultation with the 
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1 Majority Leader and Minority Leader of the House 

2 of Representatives, and the Majority Leader and Mi3 nority Leader of the Senate. 

4 (2) DATE.—The appointments of the members 

5 of the Commission shall be made no later than 60 

6 days after the date of the enactment of this Act. 

7 (3) IN GENERAL.—Members of the Commission 

8 first appointed shall each be appointed for a term of 

9 5 years. After the initial 5-year term, 3 members of 

10 the Commission shall be appointed for terms of 3 

11 years and the remaining 2 members shall be ap12 pointed for terms of 2 years. 

13 (4) VACANCIES.— 

14 (A) IN GENERAL.—Any vacancy on the 

15 Commission shall not affect its powers, but 

16 shall be filled in the same manner as the origi17 nal appointment and shall be subject to the 

18 same conditions as the original appointment. 

19 (B) UNEXPIRED TERM.—An individual 

20 chosen to fill a vacancy shall be appointed for 

21 the unexpired term of the member replaced. 

22 SEC. 202. DUTIES OF THE COMMISSION. 

23 (a) REVIEW OF WTO DISPUTE SETTLEMENT RE24 PORTS.— 
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1 (1) IN GENERAL.—The Commission shall re2 view— 

3 (A) all reports of dispute settlement panels 

4 or the Appellate Body of the World Trade Or5 ganization in proceedings initiated by other par6 ties to the WTO which are adverse to the 

7 United States and which are adopted by the 

8 Dispute Settlement Body, and 

9 (B) upon request of the United States 

10 Trade Representative, any other report of a dis11 pute settlement panel or the Appellate Body 

12 which is adopted by the Dispute Settlement 

13 Body. 

14 (2) SCOPE OF REVIEW.—In the case of reports 

15 described in paragraph (1), the Commission shall re16 view the report and determine whether— 

17 (A) the panel or the Appellate Body, as the 

18 case may be, exceeded its authority or its terms 

19 of reference; 

20 (B) the panel or the Appellate Body, as 

21 the case may be, added to the obligations of or 

22 diminished the rights of the United States 

23 under the Uruguay Round agreement which is 

24 the subject of report; 
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1 (C) the panel or the Appellate Body, as the 

2 case may be, acted arbitrarily or capriciously, 

3 engaged in misconduct, or demonstrably de4 parted from the procedures specified for panels 

5 and Appellate Bodies in the applicable Uruguay 

6 Round Agreement; and 

7 (D) the report of the panel or the Appel8 late Body, as the case may be, deviated from 

9 the applicable standard of review, including, in 

10 antidumping, countervailing duty, and other un11 fair trade remedy cases, the standard of review 

12 set forth in Article 17.6 of the Agreement on 

13 Implementation of Article VI of the General 

14 Agreement on Tariffs and Trade 1994. 

15 (3) AFFIRMATIVE DETERMINATION.—If the 

16 Commission makes an affirmative determination 

17 with respect to the action of a panel or an Appellate 

18 Body under subparagraph (A), (B), (C), or (D) of 

19 paragraph (2), the Commission shall determine 

20 whether the action of the panel or Appellate Body 

21 materially affected the outcome of the report of the 

22 panel or Appellate Body. 

23 (b) DETERMINATION; REPORT.— 

24 (1) DETERMINATION.—No later than 120 days 

25 after the date on which a report of a panel or Appel-
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1 late Body described in subsection (a)(1) is adopted 

2 by the Dispute Settlement Body, the Commission 

3 shall make a written determination with respect to 

4 matters described in subsections (a)(2) and (a)(3). 

5 (2) REPORTS.—The Commission shall report 

6 the determinations described in paragraph (1) to the 

7 Congress. 

8 SEC. 203. POWERS OF THE COMMISSION. 

9 (a) HEARINGS.—The Commission may hold such 

10 hearings, sit and act at such times and places, take such 

11 testimony, and receive such evidence as the Commission 

12 considers advisable to carry out the purposes of this title. 

13 (b) INFORMATION FROM INTERESTED PARTIES AND

14 FEDERAL AGENCIES.— 

15 (1) NOTICE OF PANEL OR APPELLATE BODY

16 REPORT.—The United States Trade Representative 

17 shall advise the Commission no later than 5 days 

18 after the date the Dispute Settlement Body adopts 

19 the report of a panel or Appellate Body that is ad20 verse to the United States and shall immediately 

21 publish notice of such advice in the Federal Reg22 ister, along with notice of an opportunity for inter23 ested parties to submit comments to the Commis24 sion. 
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1 (2) SUBMISSIONS AND REQUESTS FOR INFOR2 MATION.—Any interested party may submit com3 ments to the Commission regarding the panel or Ap4 pellate Body report. The Commission may also se5 cure directly from any Federal department or agency 

6 such information as the Commission considers nec7 essary to carry out the provisions of this title. Upon 

8 request of the Chairman of the Commission, the 

9 head of such department or agency shall furnish 

10 such information to the Commission. 

11 (3) ACCESS TO PANEL AND APPELLATE BODY

12 DOCUMENTS.—The United States Trade Representa13 tive shall make available to the Commission all sub14 missions and relevant documents relating to the 

15 panel or Appellate Body report, including any infor16 mation contained in such submissions that is identi17 fied by the provider of the information as propri18 etary information or information treated as con19 fidential by a foreign government. 

20 SEC. 204. REVIEW OF DISPUTE SETTLEMENT PROCEDURES 

21 AND PARTICIPATION IN THE WTO. 

22 (a) AFFIRMATIVE REPORT BY COMMISSION.— 

23 (1) IN GENERAL.—If a joint resolution de24 scribed in subsection (b)(1) is enacted into law pur25 suant to the provisions of subsection (c), the Presi-
27 

•HR 4177 IH 

1 dent shall undertake negotiations to amend or mod2 ify the rules and procedures of the Understanding 

3 on Rules and Procedures Governing the Settlement 

4 of Disputes to which such joint resolution relates. 

5 (2) 3 AFFIRMATIVE REPORTS BY COMMIS6 SION.—If a joint resolution described in subsection 

7 (b)(2) is enacted into law pursuant to the provisions 

8 of subsection (c), the approval of the Congress, pro9 vided under section 101(a) of the Uruguay Round 

10 Agreements Act, of the WTO Agreement shall cease 

11 to be effective in accordance with the provisions of 

12 the joint resolution and the United States shall 

13 cease to be a member of the WTO. 

14 (b) JOINT RESOLUTIONS DESCRIBED.— 

15 (1) IN GENERAL.—For purposes of subsection 

16 (a)(1), a joint resolution is described in this para17 graph, if it is a joint resolution of the 2 Houses of 

18 Congress and the matter after the resolving clause 

19 of such joint resolution is as follows: ‘‘That the Con20 gress authorizes and directs the President to under21 take negotiations to amend or modify the rules and 

22 procedures of the Understanding on Rules and Pro23 cedures Governing the Settlement of Disputes relat24 ing to ll with respect to the affirmative deter25 mination submitted to the Congress by the WTO 
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1 Dispute Settlement Review Commission on ll’’, 

2 the first blank space being filled with the specific 

3 rules and procedures with respect to which the 

4 President is to undertake negotiations and the sec5 ond blank space being filled with the date of the af6 firmative determination submitted to the Congress 

7 by the Commission pursuant to section 202(b) which 

8 has given rise to the joint resolution. 

9 (2) WITHDRAWAL RESOLUTION.—For purposes 

10 of subsection (a)(2), a joint resolution is described 

11 in this paragraph, if it is a joint resolution of the 

12 2 Houses of Congress and the matter after the re13 solving clause of such joint resolution is as follows: 

14 ‘‘That the Congress authorizes and directs the Presi15 dent to undertake negotiations to amend or modify 

16 the rules and procedures of the Understanding on 

17 Rules and Procedures Governing the Settlement of 

18 Disputes relating to ll with respect to the affirm19 ative report submitted to the Congress by the WTO 

20 Dispute Settlement Review Commission on ll and 

21 if such negotiations do not result in a satisfactory 

22 solution by ll, the Congress withdraws its ap23 proval, provided under section 101(a) of the Uru24 guay Round Agreements Act, of the WTO Agree25 ment as defined in section 2(9) of that Act’’, the 
29 

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1 first blank space being filled with the specific rules 

2 and procedures with respect to which the President 

3 is to undertake negotiations, the second blank space 

4 being filled with the date of the affirmative deter5 mination submitted to the Congress by the Commis6 sion pursuant to section 202(b) which has given rise 

7 to the joint resolution, and the third blank space 

8 being filled with the date the Congress withdraws its 

9 approval of the WTO Agreement. 

10 (c) PROCEDURAL PROVISIONS.— 

11 (1) IN GENERAL.—The requirements of this 

12 subsection are met if the joint resolution is enacted 

13 in accordance with this subsection, and— 

14 (A) in the case of a joint resolution de15 scribed in subsection (b)(1), the Congress 

16 adopts and transmits the joint resolution to the 

17 President before the end of the 90-day period 

18 (excluding any day described in section 154(b) 

19 of the Trade Act of 1974), beginning on the 

20 date on which the Congress receives an affirma21 tive determination from the Commission de22 scribed in section 202(b); or 

23 (B) in the case of a joint resolution de24 scribed in subsection (b)(2), the Commission 

25 has made 3 affirmative determinations de-
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•HR 4177 IH 

1 scribed in section 202(b) during a 5-year pe2 riod, and the Congress adopts and transmits 

3 the joint resolution to the President before the 

4 end of the 90-day period (excluding any day de5 scribed in section 154(b) of the Trade Act of 

6 1974), beginning on the date on which the Con7 gress receives the third such affirmative deter8 mination. 

9 (2) PRESIDENTIAL VETO.—In any case in 

10 which the President vetoes the joint resolution, the 

11 requirements of this subsection are met if each 

12 House of Congress votes to override that veto on or 

13 before the later of the last day of the 90-day period 

14 referred to in subparagraph (A) or (B) of paragraph 

15 (1), whichever is applicable, or the last day of the 

16 15-day period (excluding any day described in sec17 tion 154(b) of the Trade Act of 1974) beginning on 

18 the date on which the Congress receives the veto 

19 message from the President. 

20 (3) INTRODUCTION.— 

21 (A) TIME.—A joint resolution to which 

22 this section applies may be introduced at any 

23 time on or after the date on which the Commis24 sion transmits to the Congress an affirmative 

25 determination under section 202(b), and before 
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•HR 4177 IH 

1 the end of the 90-day period referred to in sub2 paragraph (A) or (B) of paragraph (1), as the 

3 case may be. 

4 (B) ANY MEMBER MAY INTRODUCE.—A 

5 joint resolution described in subsection (b) may 

6 be introduced in either House of the Congress 

7 by any Member of such House. 

8 (4) EXPEDITED PROCEDURES.— 

9 (A) GENERAL RULE.—Subject to the pro10 visions of this subsection, the provisions of sub11 sections (b), (d), (e), and (f) of section 152 of 

12 the Trade Act of 1974 (19 U.S.C. 2192(b), (d), 

13 (e), and (f)) apply to joint resolutions described 

14 in subsection (b) to the same extent as such 

15 provisions apply to resolutions under such sec16 tion. 

17 (B) REPORT OR DISCHARGE OF COM18 MITTEE.—If the committee of either House to 

19 which a joint resolution has been referred has 

20 not reported it by the close of the 45th day 

21 after its introduction (excluding any day de22 scribed in section 154(b) of the Trade Act of 

23 1974), such committee shall be automatically 

24 discharged from further consideration of the 
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1 joint resolution and it shall be placed on the ap2 propriate calendar. 

3 (C) FINANCE AND WAYS AND MEANS COM4 MITTEES.—It is not in order for— 

5 (i) the Senate to consider any joint 

6 resolution unless it has been reported by 

7 the Committee on Finance or the com8 mittee has been discharged under subpara9 graph (B); or 

10 (ii) the House of Representatives to 

11 consider any joint resolution unless it has 

12 been reported by the Committee on Ways 

13 and Means or the committee has been dis14 charged under subparagraph (B). 

15 (D) SPECIAL RULE FOR HOUSE.—A mo16 tion in the House of Representatives to proceed 

17 to the consideration of a joint resolution may 

18 only be made on the second legislative day after 

19 the calendar day on which the Member making 

20 the motion announces to the House his or her 

21 intention to do so. 

22 (5) CONSIDERATION OF SECOND RESOLUTION

23 NOT IN ORDER.—It shall not be in order in either 

24 the House of Representatives or the Senate to con25 sider a joint resolution (other than a joint resolution 
33 

•HR 4177 IH 

1 received from the other House), if that House has 

2 previously adopted a joint resolution under this sec3 tion relating to the same matter. 

4 (d) RULES OF HOUSE OF REPRESENTATIVES AND

5 SENATE.—This section is enacted by the Congress— 

6 (1) as an exercise of the rulemaking power of 

7 the House of Representatives and the Senate, re8 spectively, and as such is deemed a part of the rules 

9 of each House, respectively, and such procedures su10 persede other rules only to the extent that they are 

11 inconsistent with such other rules; and 

12 (2) with the full recognition of the constitu13 tional right of either House to change the rules (so 

14 far as relating to the procedures of that House) at 

15 any time, in the same manner, and to the same ex16 tent as any other rule of that House. 

17 SEC. 205. PARTICIPATION IN WTO PANEL PROCEEDINGS. 

18 (a) IN GENERAL.—If the United States Trade Rep19 resentative, in proceedings before a dispute settlement 

20 panel or the Appellate Body of the WTO, seeks— 

21 (1) to enforce United States rights under a 

22 multilateral trade agreement, or 

23 (2) to defend a challenged action or determina24 tion of the United States Government, 
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•HR 4177 IH 

1 a private United States person that is supportive of the 

2 position of United States Government before the panel or 

3 Appellate Body and that has a direct economic interest 

4 in the resolution by the panel or the Appellate Body of 

5 the matters in dispute shall be permitted to participate 

6 in consultations and panel proceedings with respect to 

7 those matters. The Trade Representative shall issue regu8 lations, consistent with subsections (b) and (c), ensuring 

9 full and effective participation by any such private person. 

10 (b) ACCESS TO INFORMATION.—The United States 

11 Trade Representative shall make available to persons de12 scribed in subsection (a) all information presented to or 

13 otherwise obtained by the Trade Representative in connec14 tion with a WTO dispute settlement proceeding. The 

15 United States Trade Representative shall promulgate reg16 ulations implementing a protective order system to protect 

17 information designated as confidential by the party sub18 mitting the information. 

19 (c) PARTICIPATION IN PANEL PROCESS.—Upon re20 quest from a person described in subsection (a), the 

21 United States Trade Representative shall— 

22 (1) consult in advance with such person regard23 ing the content of written submissions from the 

24 United States to the WTO panel concerned or to the 

25 other member countries involved; 
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1 (2) include, where appropriate, such person or 

2 its appropriate representative as an advisory mem3 ber of the delegation in sessions of the dispute set4 tlement panel; 

5 (3) where such person or representative, as the 

6 case may be, would bring special knowledge to the 

7 proceeding, allow such person or representative to 

8 appear before the panel, directly or through counsel, 

9 under the supervision of responsible United States 

10 Government officials; and 

11 (4) in proceedings involving confidential infor12 mation, allow appearance of such person only 

13 through counsel. 

14 SEC. 206. DEFINITIONS. 

15 In this title: 

16 (1) APPELLATE BODY.—The term ‘‘Appellate 

17 Body’’ means the Appellate Body established under 

18 Article 17.1 of the Dispute Settlement Under19 standing. 

20 (2) ADVERSE TO THE UNITED STATES.—The 

21 term ‘‘adverse to the United States’’, with respect to 

22 a report of a dispute settlement panel or the Appel23 late Body, includes any report which holds any law, 

24 regulation, or application thereof by an agency of 

25 the Federal Government or of a State or local gov-
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•HR 4177 IH 

1 ernment in the United States to be inconsistent with 

2 obligations of the United States under a Uruguay 

3 Round Agreement (or a nullification or impairment 

4 thereof), whether or not there are other elements of 

5 the report which favor arguments made by the 

6 United States. 

7 (3) DISPUTE SETTLEMENT PANEL; PANEL.— 

8 The terms ‘‘dispute settlement panel’’ and ‘‘panel’’ 

9 mean a panel established pursuant to Article 6 of 

10 the Dispute Settlement Understanding. 

11 (4) DISPUTE SETTLEMENT BODY.—The term 

12 ‘‘Dispute Settlement Body’’ means the Dispute Set13 tlement Body administering the rules and proce14 dures set forth in the Dispute Settlement Under15 standing. 

16 (5) DISPUTE SETTLEMENT UNDERSTANDING.— 

17 The term ‘‘Dispute Settlement Understanding’’ 

18 means the Understanding on Rules and Procedures 

19 Governing the Settlement of Disputes referred to in 

20 section 101(d)(16) of the Uruguay Round Agree21 ments Act. 

22 (6) URUGUAY ROUND AGREEMENT.—The term 

23 ‘‘Uruguay Round Agreement’’ means any of the 

24 agreements described in section 101(d) of the Uru25 guay Round Agreements Act. 
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1 (7) WORLD TRADE ORGANIZATION; WTO.—The 

2 terms ‘‘World Trade Organization’’ and ‘‘WTO’’ 

3 mean the organization established pursuant to the 

4 WTO Agreement. 

5 (8) WTO AGREEMENT.—The term ‘‘WTO 

6 Agreement’’ means the Agreement Establishing the 

7 World Trade Organization entered into on April 15, 

8 1994. 

9 TITLE III—REFORM OF EXPORT10 IMPORT BANK AND OVER11 SEAS PRIVATE INVESTOR 

12 CORPORATION 

13 SEC. 301. RESTRICTIONS ON EXPORT-IMPORT BANK ASSIST14 ANCE. 

15 Section 2 of the Export-Import Bank Act of 1945 

16 (12 U.S.C. 635) is amended by adding at the end the fol17 lowing: 

18 ‘‘(g) UNITED STATES CONTENT REQUIREMENTS.— 

19 Notwithstanding any other provision of law, the Bank may 

20 not guarantee, insure, extend credit, or participate in the 

21 extension of credit in connection with any project or activ22 ity that involves the production of any commodity less 

23 than 80 percent of the value of which is attributable to 

24 content produced, manufactured, mined, or grown in the 

25 United States.’’. 
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1 SEC. 302. RESTRICTIONS ON THE OVERSEAS PRIVATE IN2 VESTMENT CORPORATION. 

3 Section 231A of the Foreign Assistance Act of 1961 

4 (22 U.S.C. 2191a) is amended— 

5 (1) by redesignating subsection (c) as sub6 section (d); and 

7 (2) by inserting after subsection (b) the fol8 lowing: 

9 ‘‘(c) UNITED STATES CONTENT REQUIREMENTS.— 

10 Notwithstanding any other provision of law, the Corpora11 tion may not insure, reinsure, guarantee, or finance a 

12 project if the project involves the production of any com13 modity less than 80 percent of the value of which is attrib14 utable to content produced, manufactured, mined, or 

15 grown in the United States.’’. 

16 TITLE IV—CURRENCY 

17 MANIPULATION 

18 SEC. 401. NEGOTIATION PERIOD REGARDING CURRENCY 

19 MANIPULATION. 

20 Beginning on the date of the enactment of this Act, 

21 the President shall begin bilateral and multilateral nego22 tiations for a 90-day period with those governments of 

23 countries that the President determines are engaged most 

24 egregiously in currency manipulation, for the purpose of 

25 seeking a prompt and orderly end to such currency manip26 ulation and ensuring that the currencies of those countries 
39 

•HR 4177 IH 

1 are freely traded on international currency markets, or are 

2 established at a level that reflects a more appropriate and 

3 accurate market value. The President shall seek support 

4 in this process from international organizations and other 

5 countries and regions adversely affected by such currency 

6 manipulation. 

7 SEC. 402. FINDINGS OF FACT AND REPORT REGARDING 

8 CURRENCY MANIPULATION. 

9 (a) IN GENERAL.—During the 90-day negotiation pe10 riod described in section 401, the International Trade 

11 Commission shall— 

12 (1) examine in detail how countries have en13 gaged in currency manipulation to increase their ex14 ports to the United States and limit their imports of 

15 United States products; 

16 (2) quantify the extent of such currency manip17 ulation; 

18 (3) examine in detail how such currency manip19 ulation has affected and will continue to affect 

20 United States manufacturers and United States 

21 trade levels, both for imports and exports; 

22 (4) review whether and to what extent reduc23 tion of currency manipulation and the accumulation 

24 of dollar-denominated currency reserves and public 
40 

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1 debt instruments might adversely affect United 

2 States interest rates and public debt financing; 

3 (5) determine all available mechanisms for re4 dress under applicable international trade agree5 ments, including the Articles of Agreement of the 

6 International Monetary Fund, the GATT 1994 (as 

7 defined in section 2 of the Uruguay Round Agree8 ments Act), and other Uruguay Round Agreements 

9 (as defined in section 2 of that Act), and under 

10 United States trade laws; and 

11 (6) examine other relevant matters in connec12 tion with the issues described in paragraphs (1) 

13 through (5). 

14 (b) REPORT.—Not later than 90 days after the date 

15 of the enactment of this Act, the International Trade 

16 Commission shall provide a detailed report to the Presi17 dent, the United States Trade Representative, the Sec18 retary of the Treasury, and the appropriate congressional 

19 committees on the findings made under subsection (a). 

20 SEC. 403. PROCEEDINGS REGARDING CURRENCY MANIPU21 LATION. 

22 (a) PROCEEDING.—At the end of the 90-day negotia23 tion period provided for in section 401, if agreements are 

24 not reached by the President to promptly end the currency 

25 manipulation with respect to which the negotiations were 
41 

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1 conducted, the President shall institute proceedings under 

2 the relevant provisions of international law and United 

3 States trade laws, including section 301 of the Trade Act 

4 of 1974, with respect to those countries that, based on 

5 the findings of the International Trade Commission under 

6 section 402, continue to engage in the most egregious cur7 rency manipulation. In such proceedings, the President 

8 shall, in addition to seeking a prompt end to currency ma9 nipulation, seek appropriate compensation for the dam10 ages incurred by manufacturers and other affected parties 

11 in the United States as a result of the currency manipula12 tion. 

13 (b) REPORT TO CONGRESS IF NO ACTION TAKEN.— 

14 If the President does not enter into negotiations with any 

15 country under section 401, or if the President does not 

16 institute proceedings under this section, the President 

17 shall, not later than 120 days after the date of the enact18 ment of this Act, provide to the appropriate congressional 

19 committees a detailed explanation of why he has not done 

20 so. 

21 SEC. 404. ADDITIONAL REPORTS AND RECOMMENDATIONS. 

22 (a) NATIONAL SECURITY.—Not later than 90 days 

23 after the date of the enactment of this Act, the Secretary 

24 of Defense shall provide a detailed report to the appro25 priate congressional committees evaluating the effects on 
42 

•HR 4177 IH 

1 the national security of the United States of countries en2 gaging in significant currency manipulation, and the effect 

3 of such currency manipulation on critical manufacturing 

4 sectors such as the semiconductor industry. 

5 (b) OTHER UNFAIR TRADE PRACTICES.—Not later 

6 than 90 days after the date of the enactment of this Act, 

7 the United States Trade Representative and the Inter8 national Trade Commission shall evaluate and report in 

9 detail to the appropriate congressional committees on 

10 other trade practices and trade barriers by major East 

11 Asian trading countries that may violate international 

12 trade agreements, including the practice of maintaining a 

13 value-added or other tax regime that effectively discrimi14 nates against imports by underpricing domestically pro15 duced goods. 

16 (c) TRADE ENFORCEMENT.—Not later than 90 days 

17 after the date of the enactment of this Act, the United 

18 States Trade Representative and the International Trade 

19 Commission shall report in detail to the appropriate con20 gressional committees on steps that could be taken to sig21 nificantly improve trade enforcement efforts against un22 fair trade practices by competitor trading countries, in23 cluding making recommendations for additional support 

24 for trade enforcement efforts. 
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•HR 4177 IH 

1 (d) TRADE PROMOTION.—Not later than 90 days 

2 after the date of the enactment of this Act, the Secretary 

3 of State, the Secretary of Commerce, and the United 

4 States Trade Representative shall report in detail to the 

5 appropriate congressional committees on steps that could 

6 be taken to significantly improve trade promotion for 

7 United States goods and services, including recommenda8 tions on additional support to improve such trade pro9 motion. 

10 SEC. 405. CURRENCY MANIPULATION DEFINED. 

11 In this title, the term ‘‘currency manipulation’’ 

12 means— 

13 (1) large-scale manipulation of exchange rates 

14 by a country in order to gain an unfair competitive 

15 advantage as stated in Article IV of the Articles of 

16 Agreement of the International Monetary Fund and 

17 related provisions; 

18 (2) sustained, large-scale currency intervention 

19 by a country in one direction, through mandatory 

20 foreign exchange sales at the central bank of a coun21 try at a fixed exchange rate; or 

22 (3) other mechanisms used by a country to 

23 maintain a currency at a fixed exchange rate relative 

24 to the currency of another country. 
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•HR 4177 IH 

1 TITLE V—INTERNAL REVENUE 

2 CODE AMENDMENTS 

3 SEC. 501. DISINCENTIVIZATION OF CORPORATE EXPATRIA4 TION TO AVOID UNITED STATES INCOME TAX. 

5 (a) IN GENERAL.—Paragraph 4 of section 7701(a) 

6 of the Internal Revenue Code of 1986 (defining domestic) 

7 is amended to read as follows: 

8 ‘‘(4) DOMESTIC.— 

9 ‘‘(A) IN GENERAL.—Except as provided in 

10 subparagraph (B), the term ‘domestic’ when ap11 plied to a corporation or partnership means cre12 ated or organized in the United States or under 

13 the law of the United States or of any State 

14 unless, in the case of a partnership, the Sec15 retary provides otherwise by regulations. 

16 ‘‘(B) CERTAIN CORPORATIONS TREATED

17 AS DOMESTIC.— 

18 ‘‘(i) IN GENERAL.—The acquiring cor19 poration in a corporate expatriation trans20 action shall be treated as a domestic cor21 poration. 

22 ‘‘(ii) CORPORATE EXPATRIATION

23 TRANSACTION.—For purposes of this sub24 paragraph, the term ‘corporate expatria-
45 

•HR 4177 IH 

1 tion transaction’ means any transaction 

2 if— 

3 ‘‘(I) a nominally foreign corpora4 tion (referred to in this subparagraph 

5 as the ‘acquiring corporation’) ac6 quires, as a result of such transaction, 

7 directly or indirectly substantially all 

8 of the properties held directly or indi9 rectly by a domestic corporation, and 

10 ‘‘(II) immediately after the trans11 action, more than 80 percent of the 

12 stock (by vote or value) of the acquir13 ing corporation is held by former 

14 shareholders of the domestic corpora15 tion by reason of holding stock in the 

16 domestic corporation. 

17 ‘‘(iii) LOWER STOCK OWNERSHIP RE18 QUIREMENT IN CERTAIN CASES.—Sub19 clause (II) of clause (ii) shall be applied by 

20 substituting ‘50 percent’ for ‘80 percent’ 

21 with respect to any nominally foreign cor22 poration if— 

23 ‘‘(I) such corporation does not 

24 have substantial business activities 

25 (when compared to the total business 
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1 activities of the expanded affiliated 

2 group) in the foreign country in which 

3 or under the law of which the corpora4 tion is created or organized, and 

5 ‘‘(II) the stock of the corporation 

6 is publicly traded and the principal 

7 market for the public trading of such 

8 stock is in the United States. 

9 ‘‘(iv) PARTNERSHIP TRANSACTIONS.— 

10 The term ‘corporate expatriation trans11 action’ includes any transaction if— 

12 ‘‘(I) a nominally foreign corpora13 tion (referred to in this subparagraph 

14 as the ‘acquiring corporation’) ac15 quires, as a result of such transaction, 

16 directly or indirectly properties consti17 tuting a trade or business of a domes18 tic partnership, 

19 ‘‘(II) immediately after the trans20 action, more than 80 percent of the 

21 stock (by vote or value) of the acquir22 ing corporation is held by former 

23 partners of the domestic partnership 

24 or related foreign partnerships (deter25 mined without regard to stock of the 
47 

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1 acquiring corporation which is sold in 

2 a public offering related to the trans3 action), and 

4 ‘‘(III) the acquiring corporation 

5 meets the requirements of subclauses 

6 (I) and (II) of clause (iii). 

7 ‘‘(v) SPECIAL RULES.—For purposes 

8 of this subparagraph— 

9 ‘‘(I) a series of related trans10 actions shall be treated as 1 trans11 action, and 

12 ‘‘(II) stock held by members of 

13 the expanded affiliated group which 

14 includes the acquiring corporation 

15 shall not be taken into account in de16 termining ownership. 

17 ‘‘(vi) OTHER DEFINITIONS.—For pur18 poses of this subparagraph— 

19 ‘‘(I) NOMINALLY FOREIGN COR20 PORATION.—The term ‘nominally for21 eign corporation’ means any corpora22 tion which would (but for this sub23 paragraph) be treated as a foreign 

24 corporation. 
48 

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1 ‘‘(II) EXPANDED AFFILIATED

2 GROUP.—The term ‘expanded affili3 ated group’ means an affiliated group 

4 (as defined in section 1504(a) without 

5 regard to section 1504(b)). 

6 ‘‘(III) RELATED FOREIGN PART7 NERSHIP.—A foreign partnership is 

8 related to a domestic partnership if 

9 they are under common control (with10 in the meaning of section 482), or 

11 they shared the same trademark or 

12 tradename.’’. 

13 (b) EFFECTIVE DATES.— 

14 (1) IN GENERAL.—The amendment made by 

15 this section shall apply to corporate expatriation 

16 transactions completed after December 31, 2003. 

17 (2) SPECIAL RULE.—The amendment made by 

18 this section shall also apply to corporate expatriation 

19 transactions completed on or before December 31, 

20 2003, but only with respect to taxable years of the 

21 acquiring corporation beginning after such date. 

22 SEC. 502. INCLUSION OF INCOME FROM U.S. IMPORTS IN 

23 SUBPART F INCOME. 

24 (a) IN GENERAL.—Subsection (a) of section 954 of 

25 the Internal Revenue Code of 1986 (defining foreign base 
49 

•HR 4177 IH 

1 company income) is amended by striking ‘‘and’’ at the end 

2 of paragraph (4), by striking the period at the end of para3 graph (5) and inserting ‘‘, and’’, and by adding at the 

4 end the following: 

5 ‘‘(6) the foreign base company United States 

6 import income for the taxable year (determined 

7 under subsection (j) and reduced as provided in sub8 section (b)(5)).’’. 

9 (b) Section 954 of such Code (defining foreign base 

10 company income) is amended by adding at the end the 

11 following: 

12 ‘‘(j) FOREIGN BASE COMPANY UNITED STATES IM13 PORT INCOME.—For purposes of subsection (a)(6)— 

14 ‘‘(1) IN GENERAL.—The term ‘foreign base 

15 company United States import income’ means gross 

16 income derived from the sale of goods manufactured, 

17 produced, grown, or extracted outside the United 

18 States and imported into the United States. 

19 ‘‘(2) NOT TREATED AS ANOTHER KIND OF BASE

20 COMPANY INCOME.—Income of a corporation which 

21 is foreign base company United States import in22 come shall not be considered foreign base company 

23 income of such corporation under paragraph (2), 

24 (3), (4), or (5) of subsection (a).’’. 
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1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section apply to taxable years of controlled foreign 

3 corporations beginning after the date of enactment of this 

4 Act and to taxable years of United States shareholders 

5 in which or with which such taxable years of controlled 

6 foreign corporations end. 

7 SEC. 503. DENIAL OF TREATY BENEFITS FOR CERTAIN DE8 DUCTIBLE PAYMENTS. 

9 (a) IN GENERAL.—Section 894 of the Internal Rev10 enue Code of 1986 (relating to income affected by treaty) 

11 is amended by adding at the end the following new sub12 section: 

13 ‘‘(d) DENIAL OF TREATY BENEFITS FOR CERTAIN

14 DEDUCTIBLE PAYMENTS.— 

15 ‘‘(1) IN GENERAL.—A foreign entity shall not 

16 be entitled under any income tax treaty of the 

17 United States with a foreign country to any reduced 

18 rate of any withholding tax imposed by this title on 

19 any deductible foreign payment unless such entity is 

20 predominantly owned by individuals who are resi21 dents of such foreign country. 

22 ‘‘(2) DEDUCTIBLE FOREIGN PAYMENT.—For 

23 purposes of paragraph (1), the term ‘deductible for24 eign payment’ means any payment— 
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1 ‘‘(A) which is made by a domestic entity 

2 directly or indirectly to a related person which 

3 is a foreign entity, and 

4 ‘‘(B) which is allowable as a deduction 

5 under this chapter. 

6 ‘‘(3) DOMESTIC AND FOREIGN ENTITIES; RE7 LATED PERSON.—For purposes of this subsection— 

8 ‘‘(A) DOMESTIC ENTITY.—The term ‘do9 mestic entity’ means any domestic corporation 

10 or domestic partnership. 

11 ‘‘(B) FOREIGN ENTITY.—The term ‘for12 eign entity’ means any foreign corporation or 

13 foreign partnership. 

14 ‘‘(C) RELATED PERSON.—The term ‘re15 lated person’ has the meaning given such term 

16 by section 954(d)(3) (determined by sub17 stituting ‘domestic entity’ for ‘controlled foreign 

18 corporation’ each place it appears). 

19 ‘‘(4) PREDOMINANT OWNERSHIP.—For pur20 poses of this subsection— 

21 ‘‘(A) IN GENERAL.—An entity is predomi22 nantly owned by individuals who are residents 

23 of a foreign country if— 

24 ‘‘(i) in the case of a corporation, more 

25 than 50 percent (by value) of the stock of 
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1 such corporation is owned (within the 

2 meaning of section 883(c)(4)) by individ3 uals who are residents of such foreign 

4 country, or 

5 ‘‘(ii) in the case of a partnership, 

6 more than 50 percent (by value) of the 

7 beneficial interests in such partnership are 

8 so owned. 

9 ‘‘(B) PUBLICLY TRADED CORPORATIONS.— 

10 A foreign corporation also shall be treated as 

11 predominantly owned by individuals who are 

12 residents of a foreign country if— 

13 ‘‘(i)(I) the stock of such corporation is 

14 primarily and regularly traded on an estab15 lished securities market in such foreign 

16 country, and 

17 ‘‘(II) such corporation has activities 

18 within such foreign country which are sub19 stantial in relation to the total activities of 

20 such corporation and its related persons, 

21 or 

22 ‘‘(ii) such corporation is wholly owned 

23 (directly or indirectly) by another foreign 

24 corporation which is described in clause (i). 
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1 ‘‘(5) CONDUIT PAYMENTS.—Under regulations 

2 prescribed by the Secretary, paragraph (1) shall not 

3 apply to a payment received by a foreign entity re4 ferred to in paragraph (1) if— 

5 ‘‘(A) within a reasonable period after such 

6 entity receives such payment, such entity makes 

7 a comparable payment directly or indirectly to 

8 another related person, 

9 ‘‘(B) such related person is a resident of a 

10 foreign country with which the United States 

11 has an income tax treaty, 

12 ‘‘(C) such related person is predominantly 

13 owned by individuals who are residents of such 

14 country, and 

15 ‘‘(D) the withholding tax rate reduction 

16 under such treaty is not less than the with17 holding tax rate reduction applicable (without 

18 regard to this paragraph) to the payment re19 ceived by such foreign entity.’’. 

20 (b) EFFECTIVE DATE.—The amendment made by 

21 this section shall take effect on the date of the enactment 

22 of this Act. 
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1 SEC. 504. REPEAL OF EXCLUSION FOR EXTRATERRITORIAL 

2 INCOME. 

3 (a) IN GENERAL.—Section 114 of the Internal Rev4 enue Code of 1986 is hereby repealed. 

5 (b) CONFORMING AMENDMENTS.— 

6 (1) Subpart E of part III of subchapter N of 

7 chapter 1 of such Code (relating to qualifying for8 eign trade income) is hereby repealed. 

9 (2) The table of subparts for such part III is 

10 amended by striking the item relating to subpart E. 

11 (3) The table of sections for part III of sub12 chapter B of chapter 1 of such Code is amended by 

13 striking the item relating to section 114. 

14 (c) EFFECTIVE DATE.— 

15 (1) IN GENERAL.—The amendments made by 

16 this section shall apply to transactions occurring 

17 after the date of the enactment of this Act. 

18 (2) BINDING CONTRACTS.—The amendments 

19 made by this section shall not apply to any trans20 action in the ordinary course of a trade or business 

21 which occurs pursuant to a binding contract— 

22 (A) which is between the taxpayer and a 

23 person who is not a related person (as defined 

24 in section 943(b)(3) of such Code, as in effect 

25 on the day before the date of the enactment of 

26 this Act), and 
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1 (B) which is in effect on April 11, 2003, 

2 and at all times thereafter. 

3 For purposes of this paragraph, a binding contract 

4 shall include a purchase option, renewal option, or 

5 replacement option which is included in such con6 tract. 

7 (d) REVOCATION OF SECTION 943(e) ELECTIONS.— 

8 (1) IN GENERAL.—In the case of a corporation 

9 that elected to be treated as a domestic corporation 

10 under section 943(e) of the Internal Revenue Code 

11 of 1986 (as in effect on the day before the date of 

12 the enactment of this Act)— 

13 (A) the corporation may revoke such elec14 tion, effective as of the date of the enactment 

15 of this Act, and 

16 (B) if the corporation does revoke such 

17 election— 

18 (i) such corporation shall be treated 

19 as a domestic corporation transferring (as 

20 of the date of the enactment of this Act) 

21 all of its property to a foreign corporation 

22 in connection with an exchange described 

23 in section 354 of the Internal Revenue 

24 Code of 1986, and 
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1 (ii) no gain or loss shall be recognized 

2 on such transfer. 

3 (2) EXCEPTION.—Subparagraph (B)(ii) of 

4 paragraph (1) shall not apply to gain on any asset 

5 held by the revoking corporation if— 

6 (A) the basis of such asset is determined 

7 in whole or in part by reference to the basis of 

8 such asset in the hands of the person from 

9 whom the revoking corporation acquired such 

10 asset, 

11 (B) the asset was acquired by transfer (not 

12 as a result of the election under section 943(e) 

13 of such Code) occurring on or after the 1st day 

14 on which its election under section 943(e) of 

15 such Code was effective, and 

16 (C) a principal purpose of the acquisition 

17 was the reduction or avoidance of tax. 

18 (e) GENERAL TRANSITION.— 

19 (1) IN GENERAL.—In the case of a taxable year 

20 ending after the date of the enactment of this Act 

21 and beginning before January 1, 2009, for purposes 

22 of chapter 1 of such Code, each current FSC/ETI 

23 beneficiary shall be allowed a deduction equal to the 

24 transition amount determined under this subsection 

25 with respect to such beneficiary for such year. 
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1 (2) CURRENT FSC/ETI BENEFICIARY.—The 

2 term ‘‘current FSC/ETI beneficiary’’ means any cor3 poration which entered into one or more transactions 

4 during its taxable year beginning in calendar year 

5 2001 with respect to which FSC/ETI benefits were 

6 allowable. 

7 (3) TRANSITION AMOUNT.—For purposes of 

8 this subsection— 

9 (A) IN GENERAL.—The transition amount 

10 applicable to any current FSC/ETI beneficiary 

11 for any taxable year is the phaseout percentage 

12 of the adjusted base period amount. 

13 (B) PHASEOUT PERCENTAGE.— 

14 (i) IN GENERAL.—In the case of a 

15 taxpayer using the calendar year as its 

16 taxable year, the phaseout percentage shall 

17 be determined under the following table: 

The phaseout 

Years: percentage is: 

2004 and 2005 ................................................................................... 100 

2006 ................................................................................................... 75 

2007 ................................................................................................... 75 

2008 ................................................................................................... 50 

2009 and thereafter ........................................................................... 0. 

18 (ii) SPECIAL RULE FOR 2003.—The 

19 phaseout percentage for 2003 shall be the 

20 amount that bears the same ratio to 100 

21 percent as the number of days after the 
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1 date of the enactment of this Act bears to 

2 365. 

3 (iii) SPECIAL RULE FOR FISCAL YEAR

4 TAXPAYERS.—In the case of a taxpayer 

5 not using the calendar year as its taxable 

6 year, the phaseout percentage is the 

7 weighted average of the phaseout percent8 ages determined under the preceding provi9 sions of this paragraph with respect to cal10 endar years any portion of which is in11 cluded in the taxpayer’s taxable year. The 

12 weighted average shall be determined on 

13 the basis of the respective portions of the 

14 taxable year in each calendar year. 

15 (4) ADJUSTED BASE PERIOD AMOUNT.—For 

16 purposes of this subsection— 

17 (A) IN GENERAL.—In the case of a tax18 payer using the calendar year as its taxable 

19 year, the adjusted base period amount for any 

20 taxable year is the base period amount multi21 plied by the applicable percentage, as deter22 mined in the following table: 

The applicable 

Years: percentage is: 

2003 ................................................................................................... 100 

2004 ................................................................................................... 100 

2005 ................................................................................................... 105 

2006 ................................................................................................... 110 

2007 ................................................................................................... 115 
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The applicable 

Years: percentage is: 

2008 ................................................................................................... 120 

2009 and thereafter ........................................................................... 0. 

1 (B) BASE PERIOD AMOUNT.—The base pe2 riod amount is the aggregate FSC/ETI benefits 

3 for the taxpayer’s taxable year beginning in cal4 endar year 2001. 

5 (C) SPECIAL RULES FOR FISCAL YEAR

6 TAXPAYERS, ETC.—Rules similar to rules of 

7 clauses (ii) and (iii) of paragraph (3)(B) shall 

8 apply for purposes of this paragraph. 

9 (5) FSC/ETI BENEFIT.—For purposes of this 

10 subsection, the term ‘‘FSC/ETI benefit’’ means— 

11 (A) amounts excludable from gross income 

12 under section 114 of such Code, and 

13 (B) the exempt foreign trade income of re14 lated foreign sales corporations from property 

15 acquired from the taxpayer (determined without 

16 regard to section 923(a)(5) of such Code (relat17 ing to special rule for military property), as in 

18 effect on the day before the date of the enact19 ment of the FSC Repeal and Extraterritorial 

20 Income Exclusion Act of 2000). 

21 In determining the FSC/ETI benefit there shall be 

22 excluded any amount attributable to a transaction 

23 with respect to which the taxpayer is the lessor un-
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1 less the leased property was manufactured or pro2 duced in whole or in part by the taxpayer. 

3 (6) SPECIAL RULE FOR FARM COOPERATIVES.— 

4 Under regulations prescribed by the Secretary, de5 terminations under this subsection with respect to 

6 an organization described in section 943(g)(1) of 

7 such Code, as in effect on the day before the date 

8 of the enactment of this Act, shall be made at the 

9 cooperative level and the purposes of this subsection 

10 shall be carried out by excluding amounts from the 

11 gross income of its patrons. 

12 (7) CERTAIN RULES TO APPLY.—Rules similar 

13 to the rules of section 41(f) of such Code shall apply 

14 for purposes of this subsection. 

15 (8) COORDINATION WITH BINDING CONTRACT

16 RULE.—The deduction determined under paragraph 

17 (1) for any taxable year shall be reduced by the 

18 phaseout percentage of any FSC/ETI benefit real19 ized for the taxable year by reason of subsection 

20 (c)(2). The preceding sentence shall not apply to any 

21 FSC/ETI benefit attributable to a transaction de22 scribed in the last sentence of paragraph (5). 

23 (9) SPECIAL RULE FOR TAXABLE YEAR WHICH

24 INCLUDES DATE OF ENACTMENT.—In the case of a 

25 taxable year which includes the date of the enact-
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1 ment of this Act, the deduction allowed under this 

2 subsection to any current FSC/ETI beneficiary shall 

3 in no event exceed— 

4 (A) 100 percent of such beneficiary’s ad5 justed base period amount for calendar year 

6 2003, reduced by 

7 (B) the aggregate FSC/ETI benefits of 

8 such beneficiary with respect to transactions oc9 curring during the portion of the taxable year 

10 ending on the date of the enactment of this Act. 

11 SEC. 505. DEDUCTION RELATING TO INCOME ATTRIB12 UTABLE TO UNITED STATES PRODUCTION 

13 ACTIVITIES. 

14 (a) IN GENERAL.—Part VIII of subchapter B of 

15 chapter 1 of the Internal Revenue Code of 1986 (relating 

16 to special deductions for corporations) is amended by add17 ing at the end the following new section: 

18 ‘‘SEC. 250. INCOME ATTRIBUTABLE TO DOMESTIC PRODUC19 TION ACTIVITIES. 

20 ‘‘(a) IN GENERAL.—In the case of a corporation, 

21 there shall be allowed as a deduction an amount equal to 

22 10 percent of the qualified production activities income of 

23 the corporation for the taxable year. 

24 ‘‘(b) PHASE IN.—In the case of taxable years begin25 ning in 2006, 2007, 2008 or 2009, subsection (a) shall 
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1 be applied by substituting for the percentage contained 

2 therein the transition percentage determined under the 

3 following table: 

‘‘Taxable years The transition 

beginning in: percentage is: 

2006 ................................................................................................... 1 

2007 ................................................................................................... 2 

2008 ................................................................................................... 4 

2009 ................................................................................................... 9. 

4 ‘‘(c) QUALIFIED PRODUCTION ACTIVITIES IN5 COME.—For purposes of this section, the term ‘qualified 

6 production activities income’ means the product of— 

7 ‘‘(1) the portion of the modified taxable income 

8 of the taxpayer which is attributable to domestic 

9 production activities, and 

10 ‘‘(2) the domestic/foreign fraction. 

11 ‘‘(d) DETERMINATION OF INCOME ATTRIBUTABLE

12 TO DOMESTIC PRODUCTION ACTIVITIES.—For purposes 

13 of this section— 

14 ‘‘(1) IN GENERAL.—The portion of the modified 

15 taxable income which is attributable to domestic pro16 duction activities is so much of the modified taxable 

17 income for the taxable year as does not exceed— 

18 ‘‘(A) the taxpayer’s domestic production 

19 gross receipts for such taxable year, reduced by 

20 ‘‘(B) the sum of— 

21 ‘‘(i) the costs of goods sold that are 

22 allocable to such receipts, 
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1 ‘‘(ii) other deductions, expenses, or 

2 losses directly allocable to such receipts, 

3 and 

4 ‘‘(iii) a ratable portion of other deduc5 tions, expenses, and losses that are not di6 rectly allocable to such receipts or another 

7 class of income. 

8 ‘‘(2) ALLOCATION METHOD.—Except as pro9 vided in regulations, allocations under clauses (ii) 

10 and (iii) of paragraph (1)(B) shall be made under 

11 the principles used in determining the portion of tax12 able income from sources within and without the 

13 United States. 

14 ‘‘(3) SPECIAL RULE.— 

15 ‘‘(A) For purposes of determining costs 

16 under clause (i) of paragraph (1)(B), any item 

17 or service brought into the United States with18 out a transfer price meeting the requirements 

19 of section 482 shall be treated as acquired by 

20 purchase, and its cost shall be treated as not 

21 less than its value when it entered the United 

22 States. A similar rule shall apply in determining 

23 the adjusted basis of leased or rented property 

24 where the lease or rental gives rise to domestic 

25 production gross receipts. 
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1 ‘‘(B) In the case of any property described 

2 in subparagraph (A) that had been exported by 

3 the taxpayer for further manufacture, the in4 crease in cost (or adjusted basis) under sub5 paragraph (A) shall not exceed the difference 

6 between the value of the property when ex7 ported and the value of the property when 

8 brought back into the United States after the 

9 further manufacture. 

10 ‘‘(4) MODIFIED TAXABLE INCOME.—The term 

11 ‘modified taxable income’ means taxable income 

12 computed without regard to the deduction allowable 

13 under this section. 

14 ‘‘(e) DOMESTIC PRODUCTION GROSS RECEIPTS.— 

15 For purposes of this section— 

16 ‘‘(1) IN GENERAL.—The term ‘domestic produc17 tion gross receipts’ means the gross receipts of the 

18 taxpayer which are derived from— 

19 ‘‘(A) any sale, exchange, or other disposi20 tion of, or 

21 ‘‘(B) any lease, rental or license of, 

22 qualifying production property which was manufac23 tured, produced, grown, or extracted in whole or in 

24 significant part by the taxpayer within the United 

25 States. 
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1 ‘‘(2) SPECIAL RULE.—The term ‘domestic pro2 duction gross receipts’ includes gross receipts of the 

3 taxpayer from the sale, exchange, or other disposi4 tion of replacement parts if— 

5 ‘‘(A) such parts are sold by the taxpayer 

6 as replacement parts for qualified production 

7 property produced or manufactured in whole or 

8 significant part by the taxpayer in the United 

9 States, and 

10 ‘‘(B) the taxpayer (or a related party) 

11 owns the designs for such parts. 

12 ‘‘(3) RELATED PARTY.—The term ‘related 

13 party’ means any corporation which is a member of 

14 the taxpayer’s expanded affiliated group. 

15 ‘‘(f) QUALIFYING PRODUCTION PROPERTY.—For 

16 purposes of this section— 

17 ‘‘(1) IN GENERAL.—Except as otherwise pro18 vided in this paragraph, the term ‘qualifying produc19 tion property’ means— 

20 ‘‘(A) any tangible personal property, 

21 ‘‘(B) any computer software, and 

22 ‘‘(C) any films, tapes, records, or similar 

23 reproductions. 
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1 ‘‘(2) EXCLUSIONS FROM QUALIFYING PRODUC2 TION PROPERTY.—The term ‘qualifying production 

3 property’ shall not include— 

4 ‘‘(A) consumable property that is sold, 

5 leased, or licensed by the taxpayer as an inte6 gral part of the provision of services, 

7 ‘‘(B) oil or gas (or any primary product 

8 thereof), 

9 ‘‘(C) electricity, 

10 ‘‘(D) water supplied by pipeline to the con11 sumer, 

12 ‘‘(E) any unprocessed timber which is 

13 softwood, 

14 ‘‘(F) utility services, or 

15 ‘‘(G) any property (not described in para16 graph (1)(B)) which is a film, tape, recording, 

17 book, magazine, newspaper, or similar property 

18 the market for which is primarily topical or oth19 erwise essentially transitory in nature. 

20 For purposes of subparagraph (E), the term ‘un21 processed timber’ means any log, cant, or similar 

22 form of timber. 

23 ‘‘(g) DOMESTIC/FOREIGN FRACTION.—For purposes 

24 of this section— 
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1 ‘‘(1) IN GENERAL.—The term ‘domestic/foreign 

2 fraction’ means a fraction— 

3 ‘‘(A) the numerator of which is the value 

4 of the domestic production of the taxpayer, and 

5 ‘‘(B) the denominator of which is the value 

6 of the worldwide production of the taxpayer. 

7 ‘‘(2) VALUE OF DOMESTIC PRODUCTION.—The 

8 value of domestic production is the excess of— 

9 ‘‘(A) the domestic production gross re10 ceipts, over 

11 ‘‘(B) the cost of purchased inputs allocable 

12 to such receipts that are deductible under this 

13 chapter for the taxable year. 

14 ‘‘(3) PURCHASED INPUTS.— 

15 ‘‘(A) IN GENERAL.—Purchased inputs are 

16 any of the following items acquired by pur17 chase: 

18 ‘‘(i) Services (other than services of 

19 employees) used in manufacture, produc20 tion, growth, or extraction activities. 

21 ‘‘(ii) Items consumed in connection 

22 with such activities. 

23 ‘‘(iii) Items incorporated as part of 

24 the property being manufactured, pro25 duced, grown, or extracted. 
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1 ‘‘(B) SPECIAL RULE.—Rules similar to the 

2 rules of subsection (d)(3) shall apply for pur3 poses of this subsection. 

4 ‘‘(4) VALUE OF WORLDWIDE PRODUCTION.— 

5 ‘‘(A) IN GENERAL.—The value of world6 wide production shall be determined under the 

7 principles of paragraph (2), except that— 

8 ‘‘(i) worldwide production gross re9 ceipts shall be taken into account, and 

10 ‘‘(ii) paragraph (3)(B) shall not apply. 

11 ‘‘(B) WORLDWIDE PRODUCTION GROSS RE12 CEIPTS.—The worldwide production gross re13 ceipts is the amount that would be determined 

14 under subsection (e) if such subsection were ap15 plied without any reference to the United 

16 States. 

17 ‘‘(5) SPECIAL RULE FOR AFFILIATED

18 GROUPS.— 

19 ‘‘(A) IN GENERAL.—In the case of a tax20 payer that is a member of an expanded affili21 ated group, the domestic/foreign fraction shall 

22 be the amount determined under the preceding 

23 provisions of this subsection by treating all 

24 members of such group as a single corporation. 
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1 ‘‘(B) EXPANDED AFFILIATED GROUP.— 

2 The term ‘expanded affiliated group’ means an 

3 affiliated group as defined in section 1504(a), 

4 determined— 

5 ‘‘(i) by substituting ‘50 percent’ for 

6 ‘80 percent’ each place it appears, and 

7 ‘‘(ii) without regard to paragraphs 

8 (2), (3), and (4) of section 1504(b). 

9 ‘‘(h) DEFINITIONS AND SPECIAL RULES.— 

10 ‘‘(1) UNITED STATES.—For purposes of this 

11 section, the term ‘United States’ includes the Com12 monwealth of Puerto Rico and any other possession 

13 of the United States. 

14 ‘‘(2) SPECIAL RULE FOR PARTNERSHIPS.—For 

15 purposes of this section, a corporation’s distributive 

16 share of any partnership item shall be taken into ac17 count as if directly realized by the corporation. 

18 ‘‘(3) COORDINATION WITH MINIMUM TAX.—The 

19 deduction under this section shall be allowed for 

20 purposes of the tax imposed by section 55; except 

21 that for purposes of section 55, alternative minimum 

22 taxable income shall be taken into account in deter23 mining the deduction under this section. 
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1 ‘‘(4) ORDERING RULE.—The amount of any 

2 other deduction allowable under this chapter shall be 

3 determined as if this section had not been enacted. 

4 ‘‘(5) COORDINATION WITH TRANSITION

5 RULES.—For purposes of this section— 

6 ‘‘(A) domestic production gross receipts 

7 shall not include gross receipts from any trans8 action if the binding contract transition relief of 

9 section 2(c)(2) of the Job Protection Act of 

10 2003 applies to such transaction, and 

11 ‘‘(B) any deduction allowed under section 

12 2(e) of such Act shall be disregarded in deter13 mining the portion of the taxable income which 

14 is attributable to domestic production gross re15 ceipts.’’. 

16 (b) CLERICAL AMENDMENT.—The table of sections 

17 for part VIII of subchapter B of chapter 1 of such Code 

18 is amended by adding at the end the following new item: 

‘‘250. Income attributable to domestic production activities.’’. 

19 (c) EFFECTIVE DATE.— 

20 (1) IN GENERAL.—The amendments made by 

21 this section shall apply to taxable years beginning 

22 after 2005. 

23 (2) APPLICATION OF SECTION 15.—Section 15 

24 of the Internal revenue Code of 1986 shall apply to 
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1 the amendments made to this section as if they were 

2 changes in a rate of tax. 

3 TITLE VI—BUY AMERICAN 

4 PROVISIONS 

5 SEC. 601. REQUIREMENTS FOR WAIVERS. 

6 (a) IN GENERAL.—Section 2 of the Buy American 

7 Act (41 U.S.C. 10a) is amended— 

8 (1) by striking ‘‘Notwithstanding’’ and insert9 ing the following: 

10 ‘‘(a) IN GENERAL.—Notwithstanding’’; and 

11 (2) by adding at the end the following: 

12 ‘‘(b) SPECIAL RULES.—The following rules shall 

13 apply in carrying out the provisions of subsection (a): 

14 ‘‘(1) PUBLIC INTEREST WAIVER.—A determina15 tion that it is not in the public interest to enter into 

16 a contract in accordance with this Act may not be 

17 made after a notice of solicitation of offers for the 

18 contract is published in accordance with section 18 

19 of the Office of Federal Procurement Policy Act (41 

20 U.S.C. 416) and section 8(e) of the Small Business 

21 Act (15 U.S.C. 637(e)). 

22 ‘‘(2) DOMESTIC BIDDER.—A Federal agency 

23 entering into a contract shall give preference to a 

24 company submitting an offer on the contract that 
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1 manufactures in the United States the article, mate2 rial, or supply for which the offer is solicited, if— 

3 ‘‘(A) that company’s offer is substantially 

4 the same as an offer made by a company that 

5 does not manufacture the article, material, or 

6 supply in the United States; or 

7 ‘‘(B) that company is the only company 

8 that manufactures in the United States the ar9 ticle, material, or supply for which the offer is 

10 solicited. 

11 ‘‘(3) USE OUTSIDE THE UNITED STATES.— 

12 ‘‘(A) IN GENERAL.—Subsection (a) shall 

13 apply without regard to whether the articles, 

14 materials, or supplies to be acquired are for use 

15 outside the United States if the articles, mate16 rials, or supplies are not needed on an urgent 

17 basis or if they are acquired on a regular basis. 

18 ‘‘(B) COST ANALYSIS.—In any case where 

19 the articles, materials, or supplies are to be ac20 quired for use outside the United States and 

21 are not needed on an urgent basis, before enter22 ing into a contract an analysis shall be made of 

23 the difference in the cost for acquiring the arti24 cles, materials, or supplies from a company 

25 manufacturing the articles, materials, or sup-
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1 plies in the United States (including the cost of 

2 shipping) and the cost for acquiring the arti3 cles, materials, or supplies from a company 

4 manufacturing the articles, materials, or sup5 plies outside the United States (including the 

6 cost of shipping). 

7 ‘‘(4) DOMESTIC AVAILABILITY.—The head of a 

8 Federal agency may not make a determination under 

9 subsection (a) that an article, material, or supply is 

10 not mined, produced, or manufactured, as the case 

11 may be, in the United States in sufficient and rea12 sonably available commercial quantities and of satis13 factory quality, unless the head of the agency has 

14 conducted a study and, on the basis of such study, 

15 determined that— 

16 ‘‘(A) domestic production cannot be initi17 ated to meet the procurement needs; and 

18 ‘‘(B) a comparable article, material, or 

19 supply is not available from a company in the 

20 United States. 

21 ‘‘(c) REPORTS.— 

22 ‘‘(1) IN GENERAL.—Not later than 60 days 

23 after the end of each fiscal year, the head of each 

24 Federal agency shall submit to Congress a report on 

25 the amount of the acquisitions made by the agency 
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1 from entities that manufacture the articles, mate2 rials, or supplies outside the United States in that 

3 fiscal year. 

4 ‘‘(2) CONTENT OF REPORT.—The report re5 quired by paragraph (1) shall separately indicate the 

6 following information: 

7 ‘‘(A) The dollar value of any articles, ma8 terials, or supplies for which this Act was 

9 waived. 

10 ‘‘(B) An itemized list of all waivers grant11 ed with respect to such articles, materials, or 

12 supplies under this Act. 

13 ‘‘(C) A list of all articles, materials, and 

14 supplies acquired, their source, and the amount 

15 of the acquisitions. 

16 ‘‘(3) PUBLIC AVAILABILITY.—The head of each 

17 Federal agency submitting a report under paragraph 

18 (1) shall make the report publicly available by post19 ing on an Internet website.’’. 

20 (b) DEFINITIONS.—Section 1 of the Buy American 

21 Act (41 U.S.C. 10c) is amended— 

22 (1) by striking subsection (c) and inserting the 

23 following: 

24 ‘‘(c) FEDERAL AGENCY.—The term ‘Federal agency’ 

25 means any executive agency (as defined in section 4(1) 
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1 of the Federal Procurement Policy Act (41 U.S.C. 

2 403(1))) or any establishment in the legislative or judicial 

3 branch of the Government (except the Senate, the House 

4 of Representatives, and the Architect of the Capitol and 

5 activities under the Architect’s direction). 

6 ‘‘(d) SUBSTANTIALLY ALL.—Articles, materials, or 

7 supplies shall be treated as made substantially all from 

8 articles, materials, or supplies mined, produced, or manu9 factured, as the case may be, in the United States, if the 

10 cost of the domestic components of such articles, mate11 rials, or supplies exceeds 75 percent.’’. 

12 (c) CONFORMING AMENDMENTS.— 

13 (1) Section 2 of the Buy American Act (41 

14 U.S.C. 10a) is amended by striking ‘‘department or 

15 independent establishment’’ and inserting ‘‘Federal 

16 agency’’. 

17 (2) Section 3 of such Act (41 U.S.C. 10b) is 

18 amended— 

19 (A) by striking ‘‘department or inde20 pendent establishment’’ in subsection (a), and 

21 inserting ‘‘Federal agency’’; and 

22 (B) by striking ‘‘department, bureau, agen23 cy, or independent establishment’’ in subsection 

24 (b) and inserting ‘‘Federal agency’’. 
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1 (3) Section 633 of the National Military Estab2 lishment Appropriations Act, 1950 (41 U.S.C. 10d) 

3 is amended by striking ‘‘department or independent 

4 establishment’’ and inserting ‘‘Federal agency’’. 

5 SEC. 602. GAO REPORT AND RECOMMENDATIONS. 

6 (a) SCOPE OF WAIVERS.—Not later than 6 months 

7 after the date of enactment of this title, the Comptroller 

8 General of the United States shall report to Congress rec9 ommendations for determining, for purposes of applying 

10 the waiver provision of section 2(a) of the Buy American 

11 Act— 

12 (1) unreasonable cost; and 

13 (2) inconsistent with the public interest. 

14 (b) WAIVER PROCEDURES.—The report described in 

15 subsection (a) shall also include recommendations for es16 tablishing procedures for applying the waiver provisions 

17 of the Buy American Act that can be consistently applied. 

18 SEC. 603. DUAL USE TECHNOLOGIES. 

19 The head of a Federal agency (as defined in section 

20 1(c) of the Buy American Act (as amended by section 

21 601) may not enter into a contract, nor permit a sub22 contract under a contract of the Federal agency, with a 

23 foreign entity that involves giving the foreign entity plans, 

24 manuals, or other information that would facilitate the 

25 manufacture of a dual-use item on the Commerce Control 
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1 List unless approval for providing such plans, manuals, 

2 or information has been obtained in accordance with the 

3 provisions of the Export Administration Act of 1979 (50 

4 U.S.C. App. 2401 et seq.) and the Export Administration 

5 Regulations (15 C.F.R. part 730 et seq.) 

6 TITLE VII—ESTABLISHMENT OF 

7 CONGRESSIONAL TRADE OFFICE 

8 SECTION 701. FINDINGS. 

9 Congress makes the following findings: 

10 (1) Congress has responsibility under the Con11 stitution for international commerce. 

12 (2) Congressional oversight of trade policy has 

13 often been hampered by a lack of resources. 

14 (3) The United States has entered into numer15 ous trade agreements with foreign trading partners, 

16 including bilateral, regional, and multilateral agree17 ments. 

18 (4) The purposes of the trade agreements are— 

19 (A) to achieve a more open world trading 

20 system which provides mutually advantageous 

21 market opportunities for trade between the 

22 United States and foreign countries; 

23 (B) to facilitate the opening of foreign 

24 country markets to exports of the United States 

25 and other countries by eliminating trade bar-
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1 riers and increasing the access of United States 

2 industry and the industry of other countries to 

3 such markets; and 

4 (C) to reduce diversion of third country ex5 ports to the United States because of restricted 

6 market access in foreign countries. 

7 (5) Foreign country performance under certain 

8 agreements has been less than contemplated, and in 

9 some cases rises to the level of noncompliance. 

10 (6) The credibility of, and support for, the 

11 United States Government’s trade policy is, to a sig12 nificant extent, a function of the belief that trade 

13 agreements made are trade agreements enforced. 

14 (7) The accession of the People’s Republic of 

15 China to the World Trade Organization will create 

16 unprecedented challenges and it is important to the 

17 world trading system that China comply with the 

18 numerous and significant commitments China makes 

19 as part of the accession process. Congress must play 

20 a key role in ensuring full and continuous moni21 toring of the People’s Republic of China’s compli22 ance with its commitments. 
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1 SEC. 702. ESTABLISHMENT OF OFFICE. 

2 (a) IN GENERAL.—There is established an office in 

3 Congress to be known as the Congressional Trade Office 

4 (in this title referred to as the ‘‘Office’’). 

5 (b) PURPOSES.—The purposes of the Office are as 

6 follows: 

7 (1) To reassert the constitutional responsibility 

8 of Congress with respect to international trade. 

9 (2) To provide Congress, through the Com10 mittee on Finance of the Senate and the Committee 

11 on Ways and Means of the House of Representa12 tives, with additional independent, nonpartisan, neu13 tral trade expertise. 

14 (3) To assist Congress in providing more effec15 tive and active oversight of trade policy. 

16 (4) To assist Congress in providing to the exec17 utive branch more effective direction on trade policy. 

18 (5) To provide Congress with long-term, institu19 tional memory on trade issues. 

20 (6) To provide Congress with more analytical 

21 capability on trade issues. 

22 (7) To advise relevant committees on the im23 pact of trade negotiations, including past, ongoing, 

24 and future negotiations, with respect to the areas of 

25 jurisdiction of the respective committees. 
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1 (c) FUNCTIONS.—The functions of the Office are as 

2 follows: 

3 (1) ASSISTANCE TO CONGRESS.—To provide the 

4 Committee on Finance of the Senate and the Com5 mittee on Ways and Means of the House of Rep6 resentative and any other appropriate committee of 

7 Congress or joint committee of Congress information 

8 which will assist the committees in the discharge of 

9 the matters within their jurisdiction. 

10 (2) MONITOR COMPLIANCE.—To monitor com11 pliance with major bilateral, regional, and multilat12 eral trade agreements by— 

13 (A) consulting with the affected industries 

14 and interested parties; 

15 (B) analyzing the success of those agree16 ments based on commercial results; 

17 (C) recommending actions, including legis18 lative action, necessary to ensure that foreign 

19 countries that have made commitments through 

20 those agreements with the United States fully 

21 abide by their commitments; 

22 (D) annually assessing the extent to which 

23 those agreements comply with environmental 

24 goals; and 
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1 (E) annually assessing the extent to which 

2 those agreements comply with labor goals. 

3 (3) ANALYSIS.— 

4 (A) IN GENERAL.—To perform the fol5 lowing analyses: 

6 (i) Not later than 60 days after the 

7 date the National Trade Estimates report 

8 is delivered to Congress each year, analyze 

9 the major outstanding trade barriers based 

10 on cost to the United States economy. 

11 (ii) Not later than 60 days after the 

12 date the Trade Policy Agenda is delivered 

13 to Congress each year, analyze the Admin14 istration’s Agenda, including alternative 

15 goals, strategies, and tactics, as appro16 priate. 

17 (iii) Analyze the trade accounts quar18 terly, including the global current account, 

19 global trade account, and key bilateral 

20 trade accounts. 

21 (B) ANALYSIS REQUESTED BY COM22 MITTEE.—To perform one or more of the fol23 lowing analyses as directed by the Committee 

24 on Finance of the Senate or the Committee on 
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1 Ways and Means of the House of Representa2 tives: 

3 (i) Analyze proposed trade legislation. 

4 (ii) Analyze proposed trade agree5 ments, including agreements that do not 

6 require implementing legislation. 

7 (iii) Analyze the impact of the Admin8 istration’s trade policy and actions, includ9 ing assessing the Administration’s deci10 sions for not accepting unfair trade prac11 tices cases. 

12 (4) DISPUTE SETTLEMENT DELIBERATIONS.— 

13 To perform the following functions with respect to 

14 dispute resolution: 

15 (A) Participate as observers on the United 

16 States delegation at dispute settlement panel 

17 meetings of the World Trade Organization. 

18 (B) Evaluate each World Trade Organiza19 tion decision with respect to which the United 

20 States is a participant. In any case in which the 

21 United States does not prevail, evaluate the de22 cision and in any case in which the United 

23 States does prevail, measure the commercial re24 sults of that decision. 
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1 (C) Evaluate each dispute resolution pro2 ceeding under the North American Free Trade 

3 Agreement. In any case in which the United 

4 States does not prevail, evaluate the decision 

5 and in any case in which the United States does 

6 prevail, measure the commercial results of that 

7 decision. 

8 (D) Participate as observers in other dis9 pute settlement proceedings that the Chairman 

10 and Ranking Member of the Committee on Fi11 nance and the Chairman and Ranking Member 

12 of the Committee on Ways and Means deem ap13 propriate. 

14 (5) PARTICIPATION IN TRADE NEGOTIATIONS.— 

15 To participate as observers in selected bilateral, re16 gional, and multilateral trade negotiations. 

17 (6) OTHER FUNCTIONS OF THE OFFICE.— 

18 (A) To provide the Committee on Finance 

19 and the Committee on Ways and Means with 

20 quarterly reports regarding the activities of the 

21 Office. 

22 (B) To be available for consultation with 

23 congressional committees on trade-related legis24 lation. 
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1 (C) To receive and review classified infor2 mation and participate in classified briefings in 

3 the same manner as the staff of the Committee 

4 on Finance and the Committee on Ways and 

5 Means. 

6 (D) To consult nongovernmental experts 

7 and utilize nongovernmental resources. 

8 (E) To perform such other functions as 

9 the Chairman and Ranking Member of the 

10 Committee on Finance and the Chairman and 

11 Ranking Member of the Committee on Ways 

12 and Means may request. 

13 (d) DIRECTOR AND STAFF.— 

14 (1) DIRECTOR.— 

15 (A) IN GENERAL.—The Office shall be 

16 headed by a Director. The Director shall be ap17 pointed by the Speaker of the House of Rep18 resentatives and the President pro tempore of 

19 the Senate after considering the recommenda20 tions of the Chairman and Ranking Member of 

21 the Committee on Finance of the Senate and 

22 the Chairman and Ranking Member of the 

23 Committee on Ways and Means of the House of 

24 Representatives. The Director shall be chosen 

25 without regard to political affiliation and solely 
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1 on the basis of the Director’s expertise and fit2 ness to perform the duties of the Director. 

3 (B) TERM.—The term of office of the Di4 rector shall be 5 years and the Director may be 

5 reappointed for subsequent terms. 

6 (C) VACANCY.—Any individual appointed 

7 to fill a vacancy prior to the expiration of a 

8 term shall serve only for the unexpired portion 

9 of that term. 

10 (D) REMOVAL.—The Director may be re11 moved by either House by resolution. 

12 (E) COMPENSATION.—The Director shall 

13 receive compensation at a per annum gross rate 

14 equal to the rate of basic pay, as in effect from 

15 time to time, for level III of the Executive 

16 Schedule under section 5314 of title 5, United 

17 States Code. 

18 (2) STAFF.— 

19 (A) IN GENERAL.—The Director shall ap20 point and fix the compensation of such per21 sonnel as may be necessary to carry out the du22 ties and functions of the Office. All personnel 

23 shall be appointed without regard to political 

24 affiliation and solely on the basis of their fit25 ness to perform their duties. The personnel of 
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1 the Office shall consist of individuals with ex2 pertise in international trade, including exper3 tise in economics, trade law, various industrial 

4 sectors, and various geographical regions. 

5 (B) BENEFITS.—For purposes of pay 

6 (other than the pay of the Director) and em7 ployment, benefits, rights, and privileges, all 

8 personnel of the Office shall be treated as if 

9 they were employees of the House of Represent10 atives. 

11 (3) EXPERTS AND CONSULTANTS.—In carrying 

12 out the duties and functions of the Office, the Direc13 tor may procure the temporary (not to exceed 1 

14 year) or intermittent services of experts or consult15 ants or organizations thereof by contract as inde16 pendent contractors, or, in the case of individual ex17 perts or consultants, by employment at rates of pay 

18 not in excess of the daily equivalent of the highest 

19 rate of basic pay payable under the General Sched20 ule under section 5332 of title 5, United States 

21 Code. 

22 (4) RELATIONSHIP TO EXECUTIVE BRANCH.— 

23 The Director is authorized to secure information, 

24 data, estimates, and statistics directly from the var25 ious departments, agencies, and establishments of 
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1 the executive branch of Government and the regu2 latory agencies and commissions of the Government. 

3 All such departments, agencies, establishments, and 

4 regulatory agencies and commissions shall furnish 

5 the Director any available material which the Direc6 tor determines to be necessary in the performance of 

7 his or her duties and functions (other than material 

8 the disclosure of which would be a violation of law). 

9 The Director is also authorized, upon agreement 

10 with the head of any such department, agency, es11 tablishment, or regulatory agency or commission, to 

12 utilize its services and facilities with or without re13 imbursement; and the head of each such depart14 ment, agency, establishment, or regulatory agency or 

15 commission is authorized to provide the Office such 

16 services and facilities. 

17 (5) RELATIONSHIP TO OTHER AGENCIES OF

18 CONGRESS.—In carrying out the duties and func19 tions of the Office, and for the purpose of coordi20 nating the operations of the Office with those of 

21 other congressional agencies with a view to utilizing 

22 most effectively the information, services, and capa23 bilities of all such agencies in carrying out the var24 ious responsibilities assigned to each, the Director is 

25 authorized to obtain information, data, estimates, 
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1 and statistics developed by the General Accounting 

2 Office, the Library of Congress, and other offices of 

3 Congress, and (upon agreement with them) to utilize 

4 their services and facilities with or without reim5 bursement. The Comptroller General, the Librarian 

6 of Congress, and the head of other offices of Con7 gress are authorized to provide the Office with the 

8 information, data estimates, statistics, services, and 

9 facilities referred to in the preceding sentence. 

10 SEC. 703. PUBLIC ACCESS TO DATA. 

11 (a) RIGHT TO COPY.—Except as provided in sub12 sections (b) and (c), the Director shall make all informa13 tion, data, estimates, and statistics obtained under this 

14 title available for public copying during normal business 

15 hours, subject to reasonable rules and regulations, and 

16 shall to the extent practicable, at the request of any per17 son, furnish a copy of any such information, data, esti18 mates, or statistics upon payment by such person of the 

19 cost of making and furnishing such copy. 

20 (b) EXCEPTIONS.—Subsection (a) of this section 

21 shall not apply to information, data, estimates, and statis22 tics— 

23 (1) which are specifically exempted from disclo24 sure by law; or 
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1 (2) which the Director determines will dis2 close— 

3 (A) matters necessary to be kept secret in 

4 the interests of national defense or the con5 fidential conduct of the foreign relations of the 

6 United States; 

7 (B) information relating to trade secrets or 

8 financial or commercial information pertaining 

9 specifically to a given person if the information 

10 has been obtained by the Government on a con11 fidential basis, other than through an applica12 tion by such person for a specific financial or 

13 other benefit, and is required to be kept secret 

14 in order to prevent undue injury to the competi15 tive position of such person; or 

16 (C) personnel or medical data or similar 

17 data the disclosure of which would constitute a 

18 clearly unwarranted invasion of personal pri19 vacy; 

20 unless the portions containing such matters, information, 

21 or data have been excised. 

22 (c) INFORMATION OBTAINED FOR COMMITTEES AND

23 MEMBERS.—Subsection (a) of this section shall apply to 

24 any information, data, estimates, and statistics obtained 

25 at the request of any committee, joint committee, or Mem-
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1 ber unless such committee, joint committee, or Member 

2 of Congress has instructed the Director not to make such 

3 information, data, estimates, or statistics available for 

4 public copying. 

5 SEC. 704. AUTHORIZATION OF APPROPRIATIONS. 

6 There are authorized to be appropriated to the Office 

7 for each fiscal year such sums as may be necessary to en8 able it to carry out its duties and functions. Until sums 

9 are first appropriated pursuant to the preceding sentence, 

10 for a period not to exceed 12 months following the effec11 tive date of this title, the expenses of the Office shall be 

12 paid from the contingent fund of the Senate, in accordance 

13 with the provisions of the paragraph relating to contingent 

14 funds under the heading ‘‘UNDER LEGISLATIVE’’ in 

15 the Act of October 2, 1888 (25 Stat. 546; 2 U.S.C. 68), 

16 and upon vouchers approved by the Director. 

Æ