,,ii #aafth ,,congress #ast ,session ,s4 #bceg ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #ca1 #bjai,ms4 ,baldwin 7for herself and ,mr4 ,hawley7 introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to establish a national goal and mechanism to achieve a trade-balancing exchange rate for the ,united ,states dollar1 to impose a market access charge on certain purchases of ,united ,states assets1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,competitive ,dollar for ,jobs and ,prosperity ,act4 #b4 ,findings2 sense of ,congress 7a7 ,findings ,congress makes the following findings3 7#a7 ,the strength1 vitality1 and stability of the ,united ,states economy and1 more broadly1 the effectiveness of the global trading system are critically dependent on an international monetary regime of exchange rates that respond appropriately to eliminate persistent trade surpluses or deficits by adjusting to changes in global trade and capital flows4 7#b7 ,in recent decades1 the ,united ,states dollar has become persistently overvalued1 in relation to its equilibrium price1 because of excessive foreign capital inflows from both public and private sources4 7#c7 ,countries with persistent trade surpluses maintain or benefit from undervalued currencies over a long period of time4 ,as a result1 those countries overproduce1 underconsume1 and excessively rely on consumers in countries with persistent trade deficits for growth4 ,those countries also export their unemployment and underemployment to countries with persistent trade deficits4 7#d7 ,countries with persistent trade deficits1 including the ,united ,states1 absorb the overproduction of countries with persistent trade surpluses1 thereby reducing domestic wages1 manufacturing output and employment1 economic growth1 and innovation4 7#e7 ,the ,united ,states possesses fiscal and monetary tools to pursue national economic goals for employment1 production1 investment1 income1 price stability1 and productivity4 ,however1 exchange rates that do not adjust to balance international trade can frustrate the achievement of those goals4 ,the ,united ,states does not have a tool to manage exchange rates in the national interest4 7b7 ,sense of ,congress ,it is the sense of ,congress that-- 7#a7 it is consistent with the obligations of the ,united ,states as a member of the ,world ,trade ,organization and the ,international ,monetary ,fund that the ,united ,states use a capital flow management tool to move the ,united ,states dollar to its trade-balancing exchange rate2 and 7#b7 it is in the national interest of the ,united ,states to establish exchange rate management tools to consistently achieve a trade-balancing exchange rate4 #c4 ,definitions ,in this ,act3 7#a7 ,covered buyer ,the term covered buyer means a foreign person or a person located outside the ,united ,states that purchases a ,united ,states asset in a covered transaction4 7#b7 ,covered transaction ,the term covered transaction means the purchase or acquisition by a covered buyer of a ,united ,states asset the value of which exceeds #aj1jjj4 7#c7 ,current account balance ,the term current account balance means that current account surpluses or deficits do not exceed an average of #j4e percent of the gross domestic product of the ,united ,states in any #e-year period4 7#d7 ,domestic financial institution ,the term domestic financial institution has the meaning given that term in section #ecab of title #ca1 ,united ,states ,code4 7#e7 ,entity ,the term entity includes-- 7,a7 a corporation1 partnership1 or limited liability company2 or 7,b7 a trust or estate4 7#f7 ,foreign person ,the term foreign person means any individual or entity that is not a ,united ,states person4 7#g7 ,market access charge ,the term market access charge means the fee imposed under section #e with respect to a covered transaction4 7#h7 ,person ,the term person means an individual or entity4 7#i7 ,secretary ,the term ,secretary means the ,secretary of the ,treasury4 7#aj7 ,security2 transfer agent ,the terms security and transfer agent have the meanings given those terms in section #c of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;c74 7#aa7 ,united ,states asset 7,a7 ,in general ,except as provided in subparagraph 7,b71 the term ,united ,states asset means-- 7i7 a security1 stock1 bond1 note1 swap1 loan1 or other financial instrument-- 7,i7 the face value of which is denominated in ,united ,states dollars2 7,,ii7 that is registered or located in the ,united ,states2 or 7,,iii7 that is an obligation of a ,united ,states person2 7ii7 real property located in the ,united ,states2 7iii7 any ownership interest in an entity that is a ,united ,states person2 7iv7 intellectual property owned by a ,united ,states person2 and 7v7 any other asset class or transaction identified by the ,board of ,governors of the ,federal ,reserve as trading in sufficient volume to cause a risk of upward pressure on the exchange rate of the ,united ,states dollar4 7,b7 ,exceptions ,the term ,united ,states asset does not include-- 7i7 a good being exported from the ,united ,states2 or 7ii7 currency or noninterest bearing deposits4 7,c7 ,consideration by ,board of ,governors ,not less frequently than annually1 the ,board of ,governors shall consider whether to identify additional asset classes or transactions under subparagraph 7,a77v74 7#ab7 ,united ,states person ,the term ,united ,states person means-- 7,a7 a citizen or resident of the ,united ,states2 or 7,b7 an entity organized under the laws of the ,united ,states or any jurisdiction within the ,united ,states4 #d4 ,exchange rate management policy and mechanisms 7a7 ,amendment to ,federal ,reserve ,act ,section #b;,a of the ,federal ,reserve ,act 7#ab ,u4,s4,c4 #bbe;a7 is amended-- 7#a7 by inserting the ,united ,states exchange rate and after shall maintain2 and 7#b7 by inserting current account balance 7as defined in section #c of the ,competitive ,dollar for ,jobs and ,prosperity ,act71 after stable prices14 7b7 ,exchange rate management policy 7#a7 ,in general ,the ,board of ,governors of the ,federal ,reserve ,system shall establish an exchange rate management policy to achieve and maintain a current account balance4 7#b7 ,mechanisms ,to achieve a current account balance as required by paragraph 7#a71 the ,board of ,governors-- 7,a7 shall use the market access charge imposed under section #e2 and 7,b7 may engage in foreign exchange intervention4 #e4 ,market access charge 7a7 ,imposition ,on and after the date that is #ahj days after the date of the enactment of this ,act1 there shall be imposed a market access charge on each covered buyer in a covered transaction4 7b7 ,calculation of rate 7#a7 ,in general ,the ,board of ,governors of the ,federal ,reserve ,system shall establish and adjust the rate of the market access charge at a rate that-- 7,a7 achieves a current account balance not later than #e years after the date of the enactment of this ,act2 and 7,b7 maintains a current account balance thereafter4 7#b7 ,effects of noncrisis movements 7,a7 ,in general ,subject to subparagraph 7,b71 the ,board of ,governors may take into consideration the minimization of disruptive effects on output1 employment1 interest rates1 and foreign exchange1 securities1 and asset markets4 7,b7 ,limitation ,the ,board of ,governors may not adjust the market access charge in reaction to noncrisis movements in the markets described in subparagraph 7,a74 7#c7 ,alternate initial market access charge ,if1 on the date that is #ahj days after the date of the enactment of this ,act1 the ,board of ,governors has not established the initial rate for the market access charge1 the initial market access charge shall be established at the rate of #ej basis points of the value of a covered transaction4 7c7 ,collection and reporting 7#a7 ,in general ,the market access charge shall be collected from a covered buyer in a covered transaction as follows3 7,a7 ,in the case of a covered transaction involving a registered security1 the transfer agent shall collect the market access charge4 7,b7 ,in the case of a covered transaction not involving a registered security and through which a domestic financial institution receives funds from the covered buyer1 the domestic financial institution shall collect the market access charge4 7,c7 ,in the case of any covered transaction not described in subparagraph 7,a7 or 7,b71 the ,united ,states person that is the counterparty to the covered buyer or otherwise receives funds from the covered buyer pursuant to the covered transaction shall collect the market access charge4 7#b7 ,transfer to ,treasury ,at the end of each month1 each person collecting a market access charge under paragraph 7#a7 shall transfer to the ,secretary the amount of all market access charges collected by the person during that month in such manner as the ,secretary may prescribe4 7#c7 ,reporting ,the ,secretary shall require each person collecting a market access charge under paragraph 7#a7 with respect to a covered transaction to keep records and file reports with the ,secretary that include1 in the manner and to the extent the ,secretary prescribes-- 7,a7 the identity and address of participants in the transaction2 7,b7 a description of the legal capacity in which each participant in the transaction is acting2 7,c7 the identity of real parties in interest2 7,d7 a description of the transaction1 including the nature of the ,united ,states asset involved and the price paid2 7,e7 the amount of the market access charge collected and the amount retained as a service fee pursuant to paragraph 7#d72 and 7,f7 such other information as the ,secretary may prescribe4 7#d7 ,service fee ,a person collecting a market access charge under paragraph 7#a7 may retain1 from the amount of the market access charge collected1 a service fee1 in an amount prescribed by the ,secretary1 to compensate the person for the administrative costs of collecting the market access charge4 7#e7 ,penalties 7,a7 ,transfer agents ,a transfer agent that violates the requirements of this subsection shall be subject to a penalty under section #cb of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #gh;ff7 to the same extent as if that agent violated a provision of that ,act4 7,b7 ,domestic financial institutions and other ,united ,states persons ,a domestic financial institution or other ,united ,states person that violates the requirements of this subsection shall be subject to a penalty under section #ecba7;a77#a7 or #ecbb7;a7 of title #ca1 ,united ,states ,code1 to the same extent as if that institution violated a provision of subchapter ,,ii of chapter #ec of that title4 7d7 ,deposit in ,treasury ,the ,secretary shall deposit all amounts received under subsection 7c77#b7 into the general fund of the ,treasury4 #f4 ,regulations ,the ,secretary shall prescribe such regulations as are necessary to carry out this ,act4