TASK DEFINITION: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
PROBLEM: SECTION 1. PERMANENT EXTENSION OF ESTATE TAX AS IN EFFECT IN 2009.

    (a) Exclusion Equivalent of Unified Credit Equal to $3,500,000.--
Subsection (c) of section 2010 of the Internal Revenue Code of 1986 
(relating to unified credit against estate tax) is amended to read as 
follows:
    ``(c) Applicable Credit Amount.--
            ``(1) In general.--For purposes of this section, the 
        applicable credit amount is the amount of the tentative tax 
        which would be determined under section 2001(c) if the amount 
        with respect to which such tentative tax is to be computed were 
        equal to the applicable exclusion amount.
            ``(2) Applicable exclusion amount.--
                    ``(A) In general.--For purposes of this subsection, 
                the applicable exclusion amount is $3,500,000.
                    ``(B) Inflation adjustment.--In the case of any 
                decedent dying in a calendar year after 2010, the 
                dollar amount in subparagraph (A) shall be increased by 
                an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for such 
                        calendar year by substituting `calendar year 
                        2009' for `calendar year 1992' in subparagraph 
                        (B) thereof.
                If any amount as adjusted under the preceding sentence 
                is not a multiple of $10,000, such amount shall be 
                rounded to the nearest multiple of $10,000.''.
    (b) Maximum Estate Tax Rate Equal to 45 Percent.--
            (1) In general.--Subsection (c) of section 2001 of the 
        Internal Revenue Code of 1986 (relating to imposition and rate 
        of tax) is amended--
                    (A) by striking ``but not over $2,000,000'' in the 
                table contained in paragraph (1),
                    (B) by striking the last 2 items in such table,
                    (C) by striking ``(1) in general.--'', and
                    (D) by striking paragraph (2).
            (2) Conforming amendment.--Paragraphs (1) and (2) of 
        section 2102(b) of such Code are amended to read as follows:
            ``(1) In general.--A credit in an amount that would be 
        determined under section 2010 as the applicable credit amount 
        if the applicable exclusion amount were $60,000 shall be 
        allowed against the tax imposed by section 2101.
            ``(2) Residents of possessions of the united states.--In 
        the case of a decedent who is considered to be a `nonresident 
        not a citizen of the United States' under section 2209, the 
        credit allowed under this subsection shall not be less than the 
        proportion of the amount that would be determined under section 
        2010 as the applicable credit amount if the applicable 
        exclusion amount were $175,000 which the value of that part of 
        the decedent's gross estate which at the time of the decedent's 
        death is situated in the United States bears to the value of 
        the decedent's entire gross estate, wherever situated.''.
    (c) Modifications of Estate and Gift Taxes To Reflect Differences 
in Unified Credit Resulting From Different Tax Rates.--
            (1) Estate tax.--
                    (A) In general.--Section 2001(b)(2) of the Internal 
                Revenue Code of 1986 (relating to computation of tax) 
                is amended by striking ``if the provisions of 
                subsection (c) (as in effect at the decedent's death)'' 
                and inserting ``if the modifications described in 
                subsection (g)''.
                    (B) Modifications.--Section 2001 of such Code is 
                amended by adding at the end the following new 
                subsection:
    ``(g) Modifications to Gift Tax Payable To Reflect Different Tax 
Rates.--For purposes of applying subsection (b)(2) with respect to 1 or 
more gifts, the rates of tax under subsection (c) in effect at the 
decedent's death shall, in lieu of the rates of tax in effect at the 
time of such gifts, be used both to compute--
            ``(1) the tax imposed by chapter 12 with respect to such 
        gifts, and
            ``(2) the credit allowed against such tax under section 
        2505, including in computing--
                    ``(A) the applicable credit amount under section 
                2505(a)(1), and
                    ``(B) the sum of the amounts allowed as a credit 
                for all preceding periods under section 2505(a)(2).
        For purposes of paragraph (2)(A), the applicable credit amount 
        for any calendar year before 1998 is the amount which would be 
        determined under section 2010(c) if the applicable exclusion 
        amount were the dollar amount under section 6018(a)(1) for such 
        year.''.
            (2) Gift tax.--Section 2505(a) of such Code (relating to 
        unified credit against gift tax) is amended by adding at the 
        end the following new flush sentence:
``For purposes of applying paragraph (2) for any calendar year, the 
rates of tax in effect under section 2502(a)(2) for such calendar year 
shall, in lieu of the rates of tax in effect for preceding calendar 
periods, be used in determining the amounts allowable as a credit under 
this section for all preceding calendar periods.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to estates of decedents dying, generation-skipping transfers, and 
gifts made, after December 31, 2009.
    (e) Additional Modifications to Estate Tax.--
            (1) In general.--Subtitles A and E of title V of the 
        Economic Growth and Tax Relief Reconciliation Act of 2001, and 
        the amendments made by such subtitles, are hereby repealed; and 
        the Internal Revenue Code of 1986 shall be applied as if such 
        subtitles, and amendments, had never been enacted.
            (2) Sunset not to apply.--
                    (A) Subsection (a) of section 901 of the Economic 
                Growth and Tax Relief Reconciliation Act of 2001 is 
                amended by striking ``this Act'' and all that follows 
                and inserting ``this Act (other than title V) shall not 
                apply to taxable, plan, or limitation years beginning 
                after December 31, 2010.''.
                    (B) Subsection (b) of such section 901 is amended 
                by striking ``, estates, gifts, and transfers''.
            (3) Repeal of deadwood.--
                    (A) Sections 2011, 2057, and 2604 of the Internal 
                Revenue Code of 1986 are hereby repealed.
                    (B) The table of sections for part II of subchapter 
                A of chapter 11 of such Code is amended by striking the 
                item relating to section 2011.
                    (C) The table of sections for part IV of subchapter 
                A of chapter 11 of such Code is amended by striking the 
                item relating to section 2057.
                    (D) The table of sections for subchapter A of 
                chapter 13 of such Code is amended by striking the item 
                relating to section 2604.
    (f) Sense of the Senate Regarding Revenue Neutrality.--It is the 
sense of the Senate that any reduction in Federal revenues resulting 
from the provisions of, and amendments made by, this section should be 
fully offset.

SOLUTION: Amends the Internal Revenue Code to: (1) restore the unified credit against the estate and gift tax after 2009; (2) establish the amount of such credit at $3.5 million adjusted for inflation in calendar years after 2010; and (3) reduce the maximum estate and gift tax rate to 45%.

Expresses the sense of the Senate that any reduction in federal revenues resulting from this Act should be fully offset.

PROBLEM: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``1995 Franklin Delano Roosevelt 
Commemorative Coin Act''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) the people of the United States feel a deep debt of 
        gratitude to Franklin Delano Roosevelt for his leadership in 
        America's struggle for peace, well-being, and human dignity;
            (2) the year 1995 marks the 50th anniversary of the death 
        of President Franklin Delano Roosevelt, who died April 12, 
        1945, in Warm Springs, Georgia;
            (3) Franklin Delano Roosevelt served his country as the 32d 
        President from 1932 until his death in 1945. He is the only 
        United States President elected to four terms in office;
            (4) Franklin Delano Roosevelt served the State of New York 
        as Governor from 1928 through 1932;
            (5) Franklin Delano Roosevelt served his country as the 
        United States Assistant Secretary of the Navy from 1913 through 
        1920;
            (6) Franklin Delano Roosevelt piloted the American people 
        through the economic chaos of the Great Depression;
            (7) Franklin Delano Roosevelt, as our commander in chief, 
        led the American people through the turmoil of World War II;
            (8) Franklin Delano Roosevelt established Social Security, 
        thus providing all Americans with a more abundant and secure 
        life;
            (9) Franklin Delano Roosevelt was the author of ``The Four 
        Freedoms: Freedom of Speech, Freedom of Worship, Freedom from 
        Want, and Freedom from Fear'';
            (10) Franklin Delano Roosevelt was the founder of the 
        National Foundation for Infantile Paralysis, parent 
        organization of the March of Dimes; and
            (11) Franklin Delano Roosevelt was the chief architect of 
        the United Nations.

SEC. 3. COIN SPECIFICATIONS.

    (a) One Dollar Silver Coins.--
            (1) Issuance.--The Secretary shall issue not more than 
        500,000 one dollar coins which shall weigh 26.73 grams, have a 
        diameter of 1.500 inches, and shall contain 90 percent silver 
        and 10 percent copper.
            (2) Design.--The design of the dollar coins shall bear a 
        likeness of Franklin Delano Roosevelt. On each such coin there 
        shall be a designation of the value of the coin, an inscription 
        of the year ``1995'', and inscriptions of the terms 
        ``Liberty'', ``In God We Trust'', ``United States of America'', 
        and ``E Pluribus Unum''.
            (3) Alterations.--Additions or alterations to the design of 
        the coin shall be made only after consultation with, and 
        approval by, the Franklin Delano Roosevelt Memorial Commission.
    (b) Legal Tender.--The coins issued under this Act shall be legal 
tender as provided in section 5103 of title 31, United States Code.
    (c) Numismatic Items.--The coins issued under this Act shall be 
numismatic items for purposes of section 5134 of title 31, United 
States Code.

SEC. 4. SOURCES OF BULLION.

    The Secretary shall obtain silver for the coins minted under this 
Act from stockpiles established under the Strategic and Critical 
Materials Stock Piling Act (50 U.S.C. 98 et seq.).

SEC. 5. SELECTION OF DESIGN.

    The design for each coin authorized by this Act shall be selected 
by the Secretary after consultation with the Franklin Delano Roosevelt 
Memorial Commission.

SEC. 6. SALE OF COINS.

    (a) Sale Price.--Notwithstanding any provision of law, the coins 
issued under this Act shall be sold by the Secretary at a price equal 
to the face value, plus the cost of designing and issuing such coins 
(including labor, materials, dies, use of machinery, overhead expenses, 
marketing, and shipping).
    (b) Prepaid Orders at a Discount.--The Secretary shall accept 
prepaid orders for the coins prior to the issuance of such coins. Sales 
under this subsection shall be at a reasonable discount to reflect the 
benefit of prepayment.
    (c) Surcharge Required.--All sales shall include a surcharge of $10 
per coin.

SEC. 7. ISSUANCE OF THE COINS.

    (a) Period for Issuance.--The coins authorized under this Act shall 
be available for issue not later than January 1, 1995, but shall be 
issued only during the 1-year period beginning on such date.
    (b) Proof and Uncirculated Coins.--The coins authorized under this 
Act shall be issued in uncirculated and proof qualities. Not more than 
1 facility of the Bureau of the Mint may be used to strike any 
particular combination of denomination and quality.

SEC. 8. GENERAL WAIVER OF PROCUREMENT REGULATIONS.

    (a) In General.--Except as provided in subsection (b), no provision 
of law governing procurement or public contracts shall be applicable to 
the procurement of goods or services required to carry out this Act.
    (b) Equal Employment Opportunity.--Subsection (a) shall not relieve 
any person entering into a contract under the authority of this Act 
from complying with any law relating to equal employment opportunity.

SEC. 9. DISTRIBUTION OF SURCHARGES.

    The surcharges received by the Secretary from the sale of the coins 
issued under this Act shall be promptly paid by the Secretary in the 
following manner:
            (1) An amount equal to 50 percent of the total surcharges 
        shall be paid to the National Park Foundation Restricted 
        Account for the Franklin Delano Roosevelt Memorial.
            (2) An amount equal to 50 percent of the total surcharges 
        shall be paid to the National Park Service Restricted 
        Construction Account for the Franklin Delano Roosevelt 
        Memorial.

SEC. 10. AUDITS.

    The Comptroller General of the United States shall have the right 
to examine such books, records, documents, and other data of the 
account referred to in section 9 as may be related to the expenditure 
of amounts paid under such section.

SEC. 11. FINANCIAL ASSURANCES.

    (a) No Net Cost to the Government.--The Secretary shall take such 
actions as may be necessary to ensure that the minting and issuance of 
the coins referred to in section 3 shall not result in any net cost to 
the Federal Government.
    (b) Payment for Issuance of Coins.--No coin shall be issued under 
this Act unless the Secretary has received--
            (1) full payment for such coin;
            (2) security satisfactory to the Secretary to indemnify the 
        United States for full payment; or
            (3) a guarantee of full payment satisfactory to the 
        Secretary from a depository institution whose deposits are 
        insured by the Federal Deposit Insurance Corporation or the 
        National Credit Union Administration.

SOLUTION: 1995 Franklin Delano Roosevelt Commemorative Coin Act - Directs the Secretary of the Treasury to issue commemorative one-dollar silver coins bearing a likeness of Franklin Delano Roosevelt. 
Requires the Secretary to distribute proceeds from surcharges ($10 per coin) in equal allocations to:  (1) the National Park Foundation Restricted Account for the Franklin Delano Roosevelt Memorial; and (2) the National Park Service Restricted Construction Account for the Franklin Delano Roosevelt Memorial.

PROBLEM: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Chinese Currency Act of 2005''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) The economy and national security of the United States 
        are critically dependent upon a vibrant manufacturing base.
            (2) The good health of the United States manufacturing 
        industry requires, among other things, unfettered access to 
        open markets abroad and fairly traded raw materials and 
        products in accord with the international legal principles and 
        agreements of the World Trade Organization and the 
        International Monetary Fund.
            (3) Since 1994, the People's Republic of China has 
        aggressively intervened in currency markets to peg the Chinese 
        currency, known as the renminbi or yuan, at a fixed rate of 
        approximately 8.28 yuan to the United States dollar.
            (4) Economists generally agree that this policy by the 
        People's Republic of China has resulted in substantial 
        undervaluation of the renminbi, perhaps by 40 percent or more.
            (5) Evidence of this undervaluation can be found in the 
        large and growing annual trade surpluses of the People's 
        Republic of China, foreign-direct investment in China, and 
        rapidly increasing aggregate amount of foreign-currency 
        reserves.
            (6) The renminbi's undervaluation acts as both a subsidy 
        for exports from the People's Republic of China and a non-
        tariff barrier against imports into China, to the serious 
        detriment of the United States manufacturing industry.
            (7)(A) As a member of both the World Trade Organization and 
        the International Monetary Fund, the People's Republic of China 
        has assumed a series of international legal obligations that 
        proscribe subsidization of exports and exchange-rate 
        manipulation.
            (B) These prohibitions are most prominently set forth in 
        Articles VI, XV, and XVI of the GATT 1994 (as defined in 
        section 2(1)(B) of the Uruguay Round Agreements Act (19 U.S.C. 
        3501(1)(B)), in the Agreement on Subsidies and Countervailing 
        Measures (as defined in section 101(d)(12) of the Uruguay Round 
        Agreements Act (19 U.S.C. 3511(d)(12)), and in Articles IV and 
        VIII of the International Monetary Fund's Articles of 
        Agreement.
            (8) In addition, as a further condition of its accession 
        agreement to become a member of the World Trade Organization on 
        December 11, 2001, the People's Republic of China agreed to a 
        transitional product-specific safeguard mechanism to address 
        market disruption to an importing member's domestic industry 
        due to increased imports of products of Chinese origin.
            (9) Despite its international legal obligations, and 
        notwithstanding extended and ongoing negotiations with the 
        United States, the People's Republic of China has given no 
        indication of any intent to correct the renminbi's 
        undervaluation in the foreseeable future.
            (10) Under the foregoing circumstances, it is consistent 
        with the international legal obligations of the People's 
        Republic of China and with the corresponding international 
        legal rights of the United States to amend relevant United 
        States trade laws to make explicit that exchange-rate 
        manipulation is actionable as either or both a countervailable 
        export subsidy and as a cause of present or threatened market 
        disruption to United States domestic producers.

SEC. 3. CLARIFICATION TO INCLUDE EXCHANGE-RATE MANIPULATION AS 
              COUNTERVAILABLE SUBSIDY UNDER TITLE VII OF THE TARIFF ACT 
              OF 1930.

    (a) Amendments to Definition of Countervailable Subsidy.--
            (1) Financial contribution.--Section 771(5)(D) of the 
        Tariff Act of 1930 (19 U.S.C. 1677(5)(D)) is amended--
                    (A) by striking ``The term'' and inserting ``(i) 
                The term'';
                    (B) by redesignating clauses (i) through (iv) as 
                subclauses (I) through (IV), respectively; and
                    (C) by adding at the end the following:
                    ``(ii) In addition to clause (i), the term 
                `provides a financial contribution' means to engage in 
                exchange-rate manipulation (as defined in paragraph 
                (5C)).''.
            (2) Benefit conferred.--Section 771(5)(E) of the Tariff Act 
        of 1930 (19 U.S.C. 1677(5)(E)) is amended--
                    (A) in clause (iii), by striking ``, and'' and 
                inserting a comma;
                    (B) in clause (iv), by striking the period at the 
                end and inserting ``, and''; and
                    (C) by adding at the end the following new clause:
                            ``(v) in the case of exchange-rate 
                        manipulation (as defined in paragraph (5C)), if 
                        the price of exported goods is less than what 
                        the price of such goods would be absent the 
                        exchange-rate manipulation.''.
            (3) Specificity.--Section 771(5A)(B) of the Tariff Act of 
        1930 (19 U.S.C. 1677(5A)(B)) is amended by adding at the end 
        before the period the following: ``, such as exchange-rate 
        manipulation (as defined in paragraph (5C))''.
    (b) Definition of Exchange-Rate Manipulation.--Section 771 of the 
Tariff Act of 1930 (19 U.S.C. 1677) is amended by inserting after 
paragraph (5B) the following new paragraph:
            ``(5C) Definition of exchange-rate manipulation.--
                    ``(A) In general.--For purposes of paragraphs (5) 
                and (5A), the term `exchange-rate manipulation' means 
                protracted large-scale intervention by an authority to 
                undervalue its currency in the exchange market that 
                prevents effective balance-of-payments adjustment or 
                that gains an unfair competitive advantage over any 
                other country.
                    ``(B) Factors.--In determining whether exchange-
                rate manipulation is occurring and a benefit thereby 
                conferred, the administering authority in each case--
                            ``(i) shall consider the exporting 
                        country's--
                                    ``(I) bilateral balance-of-trade 
                                surplus or deficit with the United 
                                States;
                                    ``(II) balance-of-trade surplus or 
                                deficit with its other trading partners 
                                individually and in the aggregate;
                                    ``(III) foreign direct investment 
                                in its territory;
                                    ``(IV) currency-specific and 
                                aggregate amounts of foreign currency 
                                reserves; and
                                    ``(V) mechanisms employed to 
                                maintain its currency at a fixed 
                                exchange rate relative to another 
                                currency and, particularly, the nature, 
                                duration, and monetary expenditures of 
                                those mechanisms;
                            ``(ii) may consider such other economic 
                        factors as are relevant; and
                            ``(iii) shall measure the trade surpluses 
                        or deficits described in subclauses (I) and 
                        (II) of clause (i) with reference to the trade 
                        data reported by the United States and the 
                        other trading partners of the exporting 
                        country, unless such trade data are not 
                        available or are demonstrably inaccurate, in 
                        which case the exporting country's trade data 
                        may be relied upon if shown to be sufficiently 
                        accurate and trustworthy.
                    ``(C) Type of economy.--An authority found to be 
                engaged in exchange-rate manipulation may have either a 
                market economy or a nonmarket economy or a combination 
                thereof.''.
    (c) Effective Date.--The amendments made by this section apply with 
respect to a countervailing duty investigation initiated under subtitle 
A of title VII of the Tariff Act of 1930 before, on, or after the date 
of the enactment of this Act.

SEC. 4. CLARIFICATION TO INCLUDE EXCHANGE-RATE MANIPULATION BY THE 
              PEOPLE'S REPUBLIC OF CHINA AS MARKET DISRUPTION UNDER 
              CHAPTER 2 OF TITLE IV OF THE TRADE ACT OF 1974.

    (a) Market Disruption.--
            (1) In general.--Section 421(c) of the Trade Act of 1974 
        (19 U.S.C. 2451(c)) is amended by adding at the end the 
        following new paragraph:
    ``(3) For purposes of this section, the term `under such 
conditions' includes, but is not limited to, by reason of exchange-rate 
manipulation (as defined in paragraph (4)).''.
            (2) Definition of exchange-rate manipulation.--Section 
        421(c) of the Trade Act of 1974 (19 U.S.C. 2451(c)), as amended 
        by paragraph (1), is further amended by adding at the end the 
        following new paragraph:
    ``(4)(A) For purposes of this section, the term `exchange-rate 
manipulation' means protracted large-scale intervention by the 
Government of the People's Republic of China or any other public entity 
within the territory of the People's Republic of China to undervalue 
its currency in the exchange market that prevents effective balance-of-
payments adjustment or that gains an unfair competitive advantage over 
the United States.
    ``(B) In determining whether exchange-rate manipulation is 
occurring, the Commission in each case--
            ``(i) shall consider China's--
                    ``(I) bilateral balance-of-trade surplus or deficit 
                with the United States;
                    ``(II) balance-of-trade surplus or deficit with its 
                other trading partners individually and in the 
                aggregate;
                    ``(III) foreign direct investment in its territory;
                    ``(IV) currency-specific and aggregate amounts of 
                foreign currency reserves; and
                    ``(V) mechanisms employed to maintain its currency 
                at a fixed exchange rate relative to another currency 
                and, particularly, the nature, duration, and monetary 
                expenditures of those mechanisms;
            ``(ii) may consider such other economic factors as are 
        relevant; and
            ``(iii) shall measure the trade surpluses or deficits 
        described in subclauses (I) and (II) of clause (i) with 
        reference to the trade data reported by the United States and 
        the other trading partners of China, unless such trade data are 
        not available or are demonstrably inaccurate, in which case 
        China's trade data may be relied upon if shown to be 
        sufficiently accurate and trustworthy.''.
    (b) Critical Circumstances.--Section 421(i)(1) of the Trade Act of 
1974 (19 U.S.C. 2451(i)(1)) is amended--
            (1) in subparagraph (A), by striking ``and'' at the end;
            (2) in subparagraph (B), by striking the period at the end 
        and inserting ``; and''; and
            (3) by inserting after subparagraph (B) the following new 
        subparagraph:
            ``(C) in those instances in which the petition alleges and 
        reasonably documents that exchange-rate manipulation is 
        occurring, shall consider that factor as weighing in favor of 
        affirmative findings under subparagraphs (A) and (B).''.
    (c) Standard for Presidential Action.--Section 421(k)(2) of the 
Trade Act of 1974 (19 U.S.C. 2451(k)(2)) is amended by adding at the 
end the following new sentence: ``In those instances in which the 
Commission has made an affirmative determination that exchange-rate 
manipulation is occurring, the President shall consider that factor as 
weighing in favor of providing import relief in accordance with 
subsection (a).''.
    (d) Modifications of Relief.--Section 421(n)(2) of the Trade Act of 
1974 (19 U.S.C. 2451(n)(2)) is amended by adding at the end the 
following new sentence: ``In those instances in which the Commission 
has made an affirmative determination that exchange-rate manipulation 
is occurring, the Commission and the President shall consider that 
factor as weighing in favor of finding that continuation of relief is 
necessary to prevent or remedy the market disruption at issue.''.
    (e) Extension of Action.--Section 421(o) of the Trade Act of 1974 
(19 U.S.C. 2451(o)) is amended--
            (1) in paragraph (1), by adding at the end the following 
        new sentence: ``In those instances in which the Commission has 
        made an affirmative determination that exchange-rate 
        manipulation is occurring, the Commission shall consider that 
        factor as weighing in favor of finding that an extension of the 
        period of relief is necessary to prevent or remedy the market 
        disruption at issue.''; and
            (2) in paragraph (4), by adding at the end the following 
        new sentence: ``In those instances in which the Commission has 
        made an affirmative determination that exchange-rate 
        manipulation is occurring, the President shall consider that 
        factor as weighing in favor of finding that an extension of the 
        period of relief is necessary to prevent or remedy the market 
        disruption at issue.''.
    (f) Effective Date.--The amendments made by this section apply with 
respect to an investigation initiated under chapter 2 of title IV of 
the Trade Act of 1974 before, on, or after the date of the enactment of 
this Act.

SEC. 5. PROHIBITION ON PROCUREMENT BY THE DEPARTMENT OF DEFENSE OF 
              CERTAIN DEFENSE ARTICLES IMPORTED FROM THE PEOPLE'S 
              REPUBLIC OF CHINA.

    (a) Copy of Petition, Request, or Resolution to Be Transmitted to 
the Secretary of Defense.--Section 421(b)(4) of the Trade Act of 1974 
(19 U.S.C. 2451(b)(4)) is amended by inserting ``, the Secretary of 
Defense'' after ``, the Trade Representative''.
    (b) Determination of Secretary of Defense.--Section 421(b) of the 
Trade Act of 1974 (19 U.S.C. 2451(b)) is amended by adding at the end 
the following new paragraph:
    ``(6) Not later than 15 days after the date on which an 
investigation is initiated under this subsection, the Secretary of 
Defense shall submit to the Commission a report in writing which 
contains the determination of the Secretary as to whether or not the 
articles of the People's Republic of China that are the subject of the 
investigation are like or directly competitive with articles produced 
by a domestic industry that are critical to the defense industrial base 
of the United States.''.
    (c) Prohibition on Procurement by the Department of Defense of 
Certain Defense Articles.--
            (1) Prohibition.--If the United States International Trade 
        Commission makes an affirmative determination under section 
        421(b) of the Trade Act of 1974 (19 U.S.C. 2451(b)), or a 
        determination which the President or the United States Trade 
        Representative may consider as affirmative under section 421(e) 
        of such Act (19 U.S.C. 2451(e)), with respect to articles of 
        the People's Republic of China that the Secretary of Defense 
        has determined are like or directly competitive with articles 
        produced by a domestic industry that are critical to the 
        defense industrial base of the United States, the Secretary of 
        Defense may not procure, directly or indirectly, such products 
        of the People's Republic of China.
            (2) Waiver.--The President may waive the application of the 
        prohibition contained in paragraph (1) on a case-by-case basis 
        if the President determines and certifies to Congress that it 
        is in the national security interests of the United States to 
        do so.

SOLUTION:
Chinese Currency Act of 2005 - Amends the Tariff Act of 1930 regarding countervailing duty investigations to revise the definition of countervailable subsidy to include exchange-rate manipulation.



Defines "exchange-rate manipulation" as protracted large-scale intervention by an authority to undervalue its currency in the exchange market that prevents effective balance-of-payments adjustment or that gains an unfair competitive advantage over any other country.

Specifies factors for determining whether exchange-rate manipulation is occurring and a benefit thereby conferred.





Applies the definition of "exchange-rate manipulation" to the Government of the People's Republic of China (PRC) or any other public entity within its territory.

Specifies: (1) factors for determining whether exchange-rate manipulation is occurring in the PRC; (2) actions to be taken, if a petition for an investigation alleges and reasonably documents that it is occurring; and (3) the standard for presidential action to prevent or remedy the market disruption at issue (including import relief and its modification and extension).



 Directs the Secretary of Defense, upon proper request or resolution, to report to the U.S. International Trade Commission any determination as to whether or not the articles of the PRC that are the subject of the investigation are like or directly competitive with domestically produced articles critical to the U.S. defense industrial base.

Prohibits the Secretary from procuring, directly or indirectly, such products if the Commission or the President or the U.S. Trade Representative makes an affirmative determination that the Secretary's determination is accurate.

Provides for presidential waiver of the prohibition in the national security interests of the United States.