[Congressional Record Volume 146, Number 110 (Monday, September 18, 2000)]
[House]
[Pages H7677-H7679]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
BUREAU OF ENGRAVING AND PRINTING SECURITY PRINTING AMENDMENTS ACT OF
2000
Mr. BACHUS. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 4096) to authorize the Secretary of the Treasury to produce
currency, postage stamps, and other security documents at the request
of foreign governments, and security documents at the request of the
individual States or any political subdivision thereof, on a
reimbursable basis, and for other purposes.
The Clerk read as follows:
H.R. 4096
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Bureau of Engraving and
Printing Security Printing Amendments Act of 2000''.
SEC. 2. PRODUCTION OF DOCUMENTS FOR FOREIGN GOVERNMENTS.
(a) In General.--Section 5114(a) of title 31, United States
Code (relating to engraving and printing currency and
security documents) is amended--
(1) by striking ``(a) The Secretary of the Treasury'' and
inserting:
``(a) Authority To Engrave and Print.--
``(1) In general.--The Secretary of the Treasury''; and
(2) by adding at the end the following new paragraph:
``(2) Engraving and printing for foreign governments.--The
Secretary of the Treasury may, if the Secretary determines
that it will not interfere with engraving and printing needs
of the United States--
``(A) produce currency, postage stamps, and other security
documents for foreign governments, subject to a determination
by the Secretary of State that such production would be
consistent with the foreign policy of the United States; and
``(B) produce security documents for States and their
political subdivisions.''.
(b) Payment for Services.--Section 5143 of title 31, United
States Code (relating to payment for services of the Bureau
of Engraving and Printing) is amended--
(1) in the 1st sentence, by inserting ``, any foreign
government, or any individual state or other political
subdivision of any foreign government'' after ``agency''; and
(2) in the last sentence, by inserting ``, foreign
government, or individual state or other political
subdivision of a foreign government'' after ``agency''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Alabama (Mr. Bachus) and the gentlewoman from California (Ms. Waters)
each will control 20 minutes.
The Chair recognizes the gentleman from Alabama (Mr. Bachus).
Mr. BACHUS. Mr. Speaker, I yield myself such time as I may consume.
(Mr. BACHUS asked and was given permission to revise and extend his
remarks.)
Mr. BACHUS. Mr. Speaker, H.R. 4096 is titled Bureau of Engraving and
Printing Security Printing Amendments Act of 2000. It simply grants the
Treasury Department's currency printing arm the ability to produce on a
reimbursable basis security documents or currency for foreign countries
or security documents for States in the United States or their
political subdivisions.
Mr. Speaker, I yield such time as he may consume to the gentleman
from Illinois (Mr. Porter).
Mr. PORTER. Mr. Speaker, I would like to engage the distinguished
chairman of the Subcommittee on Domestic and International Monetary
Policy, the gentleman from Alabama (Mr. Bachus), and a member of the
subcommittee, the gentlewoman from Illinois (Mrs. Biggert), in a
colloquy.
The gentleman from Alabama (Mr. Bachus), the gentlewoman from
Illinois (Mrs. Biggert), the gentlewoman from California (Ms. Waters)
and other members of the subcommittee have worked diligently on the
subcommittee to see that our monetary policy remains strong and sound
in an ever-changing global economy, and I applaud them for doing so.
Mr. Speaker, for the first time since World War II, there is a
currency developing that could become a significant reserve currency
for the world, in competition with the U.S. dollar. This currency is
the Euro.
The dominance of the dollar as the world's premier reserve currency
has a measurably positive impact on the U.S. Federal budget and on our
economy as a whole. That dominance must be protected and preserved.
The dollar's position has been secured in part by high confidence in
its
[[Page H7678]]
soundness. Our currency handling industry has produced technology to
count and flawlessly scan for counterfeits at high speeds.
{time} 1600
But, there is danger of that soundness being challenged because of
unfair foreign competition.
In Europe, each country's Central Bank typically permits the European
manufacturers of machines that handle currency to also participate in
the design and/or production of that currency. As a result, these
European companies have advanced knowledge of and make technical
contributions to the currency before it is released. Therefore, it can
adapt its currency-handling products well in advance of the release and
even add characteristics to the currency which favor its technology.
These cooperative relationships between foreign manufacturers and
their governments create exclusive home markets. U.S. companies have
long been the innovators in currency-scanning technology. If foreign
manufacturers were to succeed in driving the last remaining U.S.
company out of business, they could then set U.S. prices at their own
domestic rates, or higher, with impunity. The United States must begin
to consider steps to ensure a level playing field for the one remaining
U.S. manufacturer of currency processing equipment.
Therefore, I hope that as the 106th Congress draws to a close and we
begin to look forward to the issues we will address in the next
Congress, that the chairman of the subcommittee and its members will
continue to work on efforts to maintain and enhance the preeminence of
the dollar in world trade. I hope we continue to have an open and
informative dialogue on these matters, and perhaps have hearings so
that all concerned parties have a chance to express their views on this
important subject.
Madam Speaker, I would ask the gentlewoman from Illinois (Mrs.
Biggert) and the chairman of the subcommittee if they would advise me
as to their disposition regarding this concern.
Mrs. BIGGERT. Madam Speaker, will the gentleman yield?
Mr. PORTER. I yield to the gentlewoman from Illinois.
Mrs. BIGGERT. Madam Speaker, I want to join my distinguished
colleague from Illinois (Mr. Porter) in applauding the gentleman from
Alabama (Mr. Bachus) for his work on the subcommittee. I would like to
associate myself with the comments from the gentleman of Illinois and
the important issue that he has raised.
One of the many currency concerns the distinguished chairman has
addressed is the importance of maintaining the dollar's preeminence as
the currency of choice in world trade. The ability of banks and other
commercial entities to handle a given country's currency quickly and
accurately is extremely important. Nearly 60 percent of U.S. currency
is held abroad, mainly because of the purchasing power and recognized
stability of the dollar. As a result, the dollar is a popular target
for counterfeiting. As the gentleman from Illinois stated, without a
U.S.-based manufacturer, there is concern that future technology
upgrades may not keep pace with more sophisticated counterfeit
operators. We, as a country, must remain vigilant in the fight against
counterfeiting.
Therefore, I hope that as the 106th Congress draws to a close and we
begin to look forward to the issues we will address in the next
Congress, that the chairman of the subcommittee will continue to work
on efforts to maintain and enhance the preeminence of the dollar in
world trade. I hope we continue to have an open and informational
dialogue on these matters and perhaps hold hearings so that all
concerned parties have a chance to express their views on this
important subject.
Mr. BACHUS. Madam Speaker, will the gentleman yield?
Mr. PORTER. I yield to the gentleman from Alabama.
Mr. BACHUS. Madam Speaker, the distinguished gentleman and
gentlewoman from Illinois have brought up two very important issues to
the continued growth of our economy, and that is the preeminence of the
dollar and our ability to detect and to combat counterfeiting. The
gentleman and gentlewoman from Illinois are correct in noting that we
must remain vigilant to protect the dollar's preeminence as the
currency in world trade. Although we have redesigned the dollar with
counterfeit-resistant features, the simple fact is that counterfeiting
continues. Because of this, we must continually update and improve our
currency to ward off that threat.
I can assure the gentlewoman and the gentleman from Illinois that we
will continue to endeavor to examine the issues at the committee level.
The gentlewoman from Illinois mentioned hearings, and I think that
would be appropriate. I will continue to work with both of my
colleagues in this dialogue; it is an important dialogue. I will add
that the gentlewoman from Illinois (Mrs. Biggert) is an important
member of both the Committee on Banking and Financial Services and the
Subcommittee on Monetary Policy, a very active member, and I can assure
her that we will continue to work with all other interested parties to
see that the discourse on this important subject continues.
I only wish that I could be working next session with the gentleman
from Illinois (Mr. Porter). Our distinguished colleague is retiring. We
are all saddened by that, but I want him to know that he will be missed
and all of his efforts will be missed.
Mr. PORTER. Madam Speaker, I thank the chairman of the subcommittee
for his very kind words. I thank the gentlewoman from Illinois, and I
hope that she will continue to be there and address this issue.
Mr. BACHUS. Madam Speaker, I want to take this opportunity to also
say that on Thursday, the gentleman from Illinois (Mr. Porter) will be
recognized for his efforts in fighting and finding a cure for cancer,
just one of the many awards that he has been given and will be given
for his work on medical research and combating disease and bringing
comfort and support to those who do suffer from illness in this
country.
Ms. WATERS. Madam Speaker, I yield myself such time as I may consume.
I would like to thank the chairman of the subcommittee and my
colleagues on the other side of the aisle for their interest that they
have shown in this issue and their concern about monetary policy.
Today, the House takes up H.R. 4096, this bill that would allow the
Treasury's Bureau of Engraving and Printing to produce currency,
postage stamps and other security documents for foreign countries on a
fully reimbursable basis. The bill would also provide the BEP with the
authority to produce security documents for the States and their
political subdivisions, also on a fully reimbursable basis.
Madam Speaker, I strongly support this bill; and I urge its adoption.
The new authority to print currency for foreign countries is being
sought by the Treasury Department and the BEP, and the Treasury
Secretary has strongly endorsed this bill.
Madam Speaker, H.R. 4096 is a noncontroversial piece of legislation
that will help foreign countries in the printing of reliable, secure
currency that will contribute to the stability of their monetary
systems and the facilitation of international trade. The new authority
will also allow States in the U.S. to come to the BEP for its help in
producing security documents such as fish and game stamps, automobile
titles, property deeds, birth and death certificates, and bond or
special stock certificates. This bill will enable BEP to even out its
work schedules and operate more efficiently, particularly during times
when it faces excess capacity.
In addition, performing work for foreign countries will allow the
Bureau to test without cost to United States taxpayers how technologies
and anticounterfeiting techniques can be incorporated into future
design of U.S. currency.
The bill will enable the Bureau of Engraving and Printing to fully
utilize and hone the skills of its workforce, particularly craft
employees such as portrait and letter engravers. In the last decade,
countries such as Turkey, South Africa, Eritrea and Kuwait have
approached the BEP to print security documents on their behalf, but the
BEP could not provide the service because it lacked the statutory
authority. This will do it.
Madam Speaker, I urge swift passage of this bill.
[[Page H7679]]
Madam Speaker, I yield back the balance of my time.
Mr. BACHUS. Madam Speaker, I yield myself such time as I may consume.
I think that the ranking member from California pointed out something
very important. This legislation, which was made at the request of the
administration, will allow the Bureau and the engravers there to
develop their expertise, which is already considerable, to develop that
expertise even more in producing cutting edge, anticounterfeiting and
security features that might eventually find their way on to United
States currency, but they can do that by basically developing it on
another currency and seeing if it, in fact, is a benefit.
As the gentlewoman from California (Ms. Waters) also said, there is
excess capacity at the Bureau. We will be reimbursed in full not only
for our costs, but our capital investment, so this should have a net
positive effect on the Treasury, in the benefit of the U.S. taxpayers.
I will submit a full statement in the Record, but the gentlewoman from
California basically has covered everything that I would cover in my
oral statement. I will submit my written statement for the Record.
H.R. 4096, the ``Bureau of Engraving and Printing Security Printing
Amendments Act of 2000,'' grants the Treasury Department's currency-
printing arm the authority to produce, on a reimbursable basis,
security documents or currency for foreign countries, or security
documents for states of the United States or their political
subdivisions.
Currently, the Bureau of Engraving and Printing may only print
security products for Federal entities. It produces currency for the
Federal Reserve and postage stamps for the United States Postal
Service.
Passage of this legislation would permit the United States to assist
developing nations in the deployment of stable currency systems, and to
produce security products to facilitate international commerce. Those
activities would allow the Bureau of Engraving and Printing to realize
production efficiencies by providing additional work for the Bureau's
superb engravers and printers.
The legislation stipulates that all such printing for foreign nations
be done on a strictly reimbursable basis. By law, the Bureau must
recover all actual costs as well as imputed long-term capital costs, so
there would be no taxpayer cost for this effort. Additionally, there is
a non-cash benefit to taxpayers in that depending on the type of
currency or security documents printed for foreign nations, the Bureau
should be able to develop an expertise in producing cutting-edge anti-
counterfeiting and security features that might eventually find their
way into United States currency.
Additionally, the bill stipulates that no printing for a foreign
nation be undertaken without a determination by the Secretary of State
that it is consistent with the foreign policy of the United States; and
that printing for either developing countries, or for states, would be
limited to times when demand for U.S. currency, postage stamps or other
security products is below the Bureau's production capacity.
This bill was introduced ``by request'' in March, and was passed out
of subcommittee and the full Banking Committee on voice votes.
Madam Speaker, I yield back the balance of my time.
The SPEAKER pro tempore (Mrs. Morella). The question is on the motion
offered by the gentleman from Alabama (Mr. Bachus) that the House
suspend the rules and pass the bill, H.R. 4096.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
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