[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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