[Congressional Record (Bound Edition), Volume 148 (2002), Part 3]
[House]
[Pages 3491-3494]
[From the U.S. Government Publishing Office, www.gpo.gov]




 BUREAU OF ENGRAVING AND PRINTING SECURITY PRINTING AMENDMENTS ACT OF 
                                  2002

  Mr. BEREUTER. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 2509) 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 of the United States, or any political subdivision 
thereof, on a reimbursable basis, as amended.
  The Clerk read as follows:

                               H.R. 2509

       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 2002''.

     SEC. 2. PRODUCTION OF DOCUMENTS.

       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 paragraphs:
       ``(2) Engraving and printing for other 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, 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.
       ``(3) Procurement guidelines.--Articles, material, and 
     supplies procured for use in the production of currency, 
     postage stamps, and other security documents for foreign 
     governments pursuant to paragraph (2) shall be treated in the 
     same manner as articles, material, and supplies procured for 
     public use within the United States for purposes of title III 
     of the Act of March 3, 1933 (41 U.S.C. 10a et seq.; commonly 
     referred to as the Buy American Act).''.

     SEC. 3. REIMBURSEMENT.

       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 first sentence, by inserting ``or foreign 
     government'' after ``agency'';
       (2) in the second sentence, by inserting ``and other'' 
     after ``administrative''; and
       (3) in the last sentence, by inserting ``or foreign 
     government'' after ``agency''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Nebraska (Mr. Bereuter) and the gentlewoman from New York (Mrs. 
Maloney) each will control 20 minutes.
  The Chair recognizes the gentleman from Nebraska (Mr. Bereuter).


                             General Leave

  Mr. BEREUTER. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days within which to revise and extend their 
remarks and include extraneous material on this legislation.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Nebraska?
  There was no objection.
  Mr. BEREUTER. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in strong support of H.R. 2009, the Bureau of 
Engraving and Printing Security Printing Amendments Act of 2002. The 
bill allows the Treasury Department's currency printer, under certain 
well-defined circumstances, to print currency and other security 
documents for foreign countries.
  One of the bedrocks of a strong, modern economy is a currency in 
which a country's citizens have faith. Unfortunately for every 
currency, strong or

[[Page 3492]]

otherwise, there are people who seek to create counterfeits, either to 
enrich themselves or to shake faith in the economy and the government, 
or both.
  Counterfeiters have existed as long as there has been money. Mr. 
Speaker, in fact, the United States Secret Service, which does such a 
good job of protecting the President and senior government officials, 
originally was formed as an anticounterfeiting squad. The Secret 
Service is so impressive at this task that few of us ever look at our 
paper money to check its authenticity. Sadly, that is not the case in 
many other countries.
  Today, with the increasingly global economy and the advances in 
technology, the temptation to counterfeit and the means to do so are 
ever more available. It is difficult enough for the Secret Service and 
our currency printer, the Bureau of Engraving and Printing, or the BEP, 
to stay ahead of this threat. That is why, as we know, the Treasury 
Department is expected to start issuing a newly designed set of 
currency beginning sometime next year, a mere 6 years after the last 
redesign.
  But if it is hard for us to outwit counterfeiters, imagine the 
difficulties facing smaller countries, even if they are not in a state 
of war or undergoing the stress of massive corruption, or are being 
subjected to an out-of-control drug business.
  Good currency security takes constant research and development, and 
it takes sophisticated printing techniques. This is why smaller 
countries typically approach other, larger governments instead of 
private printers to have their currency printed. Australia, England, 
the United Kingdom, and some of the European countries have been doing 
this for decades.
  While our Mint has the authority to make coins for other countries, 
the Bureau of Printing does not, and it has always had to send the 
business elsewhere, overseas. Frankly, Mr. Speaker, that has been a 
loss to this country for several reasons. While under no circumstances 
would the printing contemplated in this bill be a money-maker, there 
are some clear foreign policy advantages to being able to accommodate 
such a request from a friendly nation, especially when there would be 
no cost to the taxpayers.
  There also are advantages to having our topnotch printers and 
engravers be able to become familiar with cutting-edge currency and 
security techniques that may be requested by countries, but which may 
not reasonably be suitable for the massive printing runs that our own 
country's currency demands.
  As the gentleman from Louisiana (Mr. Baker), a member of the 
committee, has pointed out, many of the techniques that first appeared 
in another country's currency printed by the BEP might appear later in 
a more advanced form in our currency, because the Treasury has 
estimated the need to redesign our paper money every 6 to 7 years from 
here on out to keep it secure.
  This bill is essentially the same language as that originally 
introduced last year at the request of the administration by the 
gentleman from New York (Mr. King), with the strong support of the 
gentlewoman from New York (Mrs. Maloney). In turn, that language was 
itself similar to language introduced in the previous Congress, at the 
previous administration's request, by the gentleman from Alabama (Mr. 
Bachus) and passed by the subcommittee, the committee, and the full 
House. The only changes are limitations on the authority to print for 
foreign governments only.
  The original bill also authorizes the printing of security documents 
for the States of the United States, and the addition of a ``buy 
America'' clause. With the exception of the latter, the House passed 
this language as part of the USA Patriot Act of 2001 last fall.
  Three conditions are required before the BEP could print currency for 
another country: The Secretary of State has to certify that such an 
effort is consistent with the foreign policy goals of the United 
States; the job must not interfere with the BEP's main job of printing 
currency for the U.S.; and all real and imputed costs, administration 
and capital investments as well as paper, ink, and labor, must be 
recovered.
  Mr. Speaker, in the last decade the BEP has had to turn away requests 
from Kuwait and more recently Mexico for the U.S. to bid on printing 
their currency. Without this bill, it would be impossible for the 
Bureau to print, if asked, new currency for Afghanistan, which 
desperately needs a secure currency, as at least two different versions 
of the Afghani now circulate, in addition to suspected counterfeits.
  In conclusion, Mr. Speaker, I will include an opinion from the Secret 
Service on H.R. 2509. I believe we already have that consent. It 
concludes, ``The Secret Service supports the passage of this 
legislation, as it would serve as a proactive tool against the 
counterfeiting of U.S. currency.''
  Mr. Speaker, this country demonstrably benefits by the strengthening 
of other countries' currency regimes. Plainly said, making 
counterfeiting harder leads to fewer counterfeiters. Especially if 
there is no cost to the United States taxpayer, I can think of no 
reason not to advance the bill immediately, sending it to the other 
body as quickly as possible.
  Mr. Speaker, I ask for its immediate passage.
  Mr. Speaker, I reserve the balance of my time.
  Mrs. MALONEY of New York. Mr. Speaker, I yield myself such time as I 
may consume.
  I rise in strong support of H.R. 2509, Mr. Speaker, the Bureau of 
Engraving and Printing Security Printing Amendments Act of 2001.
  The subcommittee chairman, the gentleman from New York (Mr. King), 
and I introduced this legislation last year. It is the product of 
bipartisan negotiations and consultation with the administration. It 
closely tracks legislation that passed last year in the 106th Congress, 
and I urge its timely enactment.
  This noncontroversial legislation gives Treasury the ability to 
produce security documents, postage stamps, and currency for foreign 
countries. In the last decade, several countries, including Turkey, 
South Africa, Mexico, and Kuwait have approached the U.S. about 
printing security documents on their behalf. This legislation will 
grant the Bureau of Engraving and Printing this authority.
  In no way will printing foreign currency interfere with the 
production of U.S. currency. Rather, it will benefit our national 
interests in several ways.
  First, there is currently excess capacity at the BEP, and foreign 
currency will only be printed by the Bureau as long as capacity is 
available.
  This additional work will benefit the BEP, allowing its expert 
printers to further refine their skills.
  Any investments the BEP will make to purchase equipment and materials 
to produce currency for other countries will be reimbursed.
  The entire operation should have a positive effect on the U.S. 
Treasury, and create U.S. additional jobs.
  Beyond the economic benefits, the legislation will further U.S. 
interests around the world. No printing for a foreign government will 
take place without the express approval of the Secretary of State, who 
will ensure that all approved work is in the national interest.
  Perhaps most importantly, passage of this bill will allow the BEP to 
share its anticounterfeiting expertise with the countries whose 
currency it will produce.
  In the aftermath of the attacks on New York City and Washington, we 
have learned more than we ever wanted to know about the inner workings 
of terror cells. We now know that in many ways Terror, Incorporated, 
works like every other business, and requires money to operate.
  This legislation will allow the U.S. to help foreign countries 
prevent counterfeiting of their currency, and allow the BEP to continue 
to develop expertise it can use domestically.
  This legislation has tangible benefits to U.S. taxpayers and foreign 
policy. I urge its adoption.
  Mr. KOLBE. Mr. Speaker, I rise in support of the Bureau of Engraving 
and Printing Security Printing Amendments Act, H.R. 2509, to authorize 
the Bureau of Engraving and Printing

[[Page 3493]]

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 of the United States on a reimbursable 
basis. The U.S. Mint already has similar authority. This legislation 
makes sense. We need to modernize our legal tender and H.R. 2509 is a 
positive step in this direction.
  I introduced legislation to comprehensively modernize our money 
system--the Legal Tender Modernization Act (H.R. 2528). We need to 
modernize our money to improve the convenience and effectiveness of its 
daily use. Legal tender should not add to market inefficiencies. I 
believe it is better to spend taxpayer money on education, health care, 
national security, and other important national needs rather than on an 
inefficient legal tender system.
  The Legal Tender Modernization Act essentially accomplishes five 
objectives. It establishes a five year commemorative $2 bill program 
similar to the 50 State quarter program, requires cash sales to be 
rounded up or down to the nearest five cent increment to reduce the 
circulation of the penny, authorizes the Department of the Treasury to 
produce currency for foreign governments, as does H.R. 3509, clarifies 
that seigniorage (the difference between the face value of money and 
the cost to produce it) is part of the federal budget, and makes 
permanent current law prohibiting the redesign of the $1 bill.
  Since there has been so much attention given to this issue, let me 
explain in more detail the rounding system I am proposing to reduce the 
use of the penny. The penny would continue to be legal tender, but 
would not be necessary in cash transactions. The total value of any 
cash transaction would be rounded up or down so that no pennies would 
be required. Again, let me stress that the rounding would be applied to 
the total transaction costs, after taxes, and only for cash 
transactions.
  Here's how it would work:
  If the final amount contains 1 or 2 cents, the amount would be 
rounded to 0 cents.
  If the final amount contains 3, 4, 6, or 7 cents, the amount would be 
rounded to 5 cents.
  If the final amount contains 8 or 9 cents, the amount would be 
rounded to 10 cents.
  Rounding will not occur if the total amount is 2 cents or less or if 
the payment is made by a negotiable instrument, electronic fund 
transfer, money order, or credit card. Also, the rounding occurs after 
discounts and taxes so state or municipalities will receive the exact 
amount of any tax imposed.
  This system favors neither the consumer nor the retailer because the 
probability of rounding up or down is 50 percent either way. For 
example, if you wanted to purchase some frozen lemonade mix that costs 
98 cents, you would pay $1.00. However, if you chose to buy two frozen 
lemonade mixes for $1.96, you would pay $1.95. The calculation becomes 
more complicated by factoring in any taxes on the final sales amount. 
And if you are shopping at a grocery store, you must factor in the 
weight of produce and recognize that some items are taxable and others 
are non-taxable. As you can see, there would be no way for businesses 
to establish a pricing structure so that they could make an extra 2 
cents on every transaction or that would cause price increases. It is 
important to note also that a similar rounding technique is used at 
overseas US military bases and in Australia and New Zealand, and 
gasoline is priced in nine-tenths of a cent and rounded up.
  The rounding system has several advantages. First, it would save the 
taxpayer money. The penny has very low or no profit margin for the 
Mint. In fact, the General Accounting Office reported in 1997 that the 
penny is unprofitable. Second, it would save businesses and customers 
money by reducing transaction time (some estimate up to 2.5 seconds/
transaction) and time spent waiting in lines, reducing the need for 
rolled coins (there are costs associated with wrapping and transporting 
pennies), and reducing errors when employees spend time counting 
pennies.
  It is past time for our legal tender system to be improved, and I 
understand concerns about changing this system. Change is always met 
with resistance. New area codes were not welcomed by people, but I 
think a greater good is achieved by allowing our telecommunications 
infrastructure to address growth. Changing or introducing new coinage 
or currency is no different. In 1914, England went from a coin to a 
note, even though the public opinion did not support this change. 
Canada went the other direction from a note to a coin against the 
wishes of the public, but the public now accepts this coin.
  I urge my colleagues to support this legislation. It moves us one 
step closer to a comprehensive modernization of our legal tender.
  Mr. OXLEY. Mr. Speaker, the problem of counterfeiting of currency is 
serious and getting worse in a number of places throughout the world.
  Terrorists, rebels and drug traders seek more money with which to ply 
their deadly trades. Some seek to destabilize economies or governments, 
or merely to get something for nothing. And with the rapidly improving 
computer technology--scanners, color printers and powerful PC's 
available very inexpensively--it isn't even necessary anymore for 
counterfeiters to know how to run a complicated printing press.
  Recognizing this trend, the Committee on Financial Services, and then 
the House last fall, included two items aimed at strengthening anti-
counterfeiting efforts around the world as part of the anti-money 
laundering portion of the USA PATRIOT Act, the first major 
Congressional reaction to the terror attacks of September 11.
  One of the pieces of legislative language was aimed at helping our 
Secret Service, the government's anti-counterfeiting agency, help 
arrest and more severely punish people who counterfeit U.S. currency, 
or people who counterfeit foreign currency while on U.S. soil. The 
other sought to allow the Treasury Department's currency printing arm, 
the Bureau of Engraving and Printing, to print currency for foreign 
governments on request.
  One of the two provisions survived conference with the other body, 
Mr. Speaker, and the Secret Service has been using those authorities 
aggressively to pursue and incarcerate counterfeiters in this country 
and, in some cases, to assist foreign governments in tracking down 
those who would counterfeit U.S. currency overseas.
  We are here today to again pass the other provision, Mr. Speaker, and 
I urge strong support for this bill both here and in the other chamber. 
I should note that the House has passed this legislation now three 
times--this will be the fourth--but that for reasons of timing as much 
as anything else the Senate has not yet acted on the bill. I hope that 
by sending H.R. 2509 across the Rotunda early enough in this 
legislative session there will be adequate time for them to act, and 
that there will be a renewed appetite to pass this bill that manifestly 
helps the United States, as well as those whose currency we may end up 
printing in a more secure fashion.
  Mr. Speaker, counterfeiters are clever and determined, because the 
payoff if they are successful is so great. Imagine the level of profit 
in a country in, say, South America, with a standard of living much 
lower than ours, if one can produce high-denomination banknotes for a 
few pennies' worth of materials.
  Many countries simply lack the printing capability, or the research-
and-development skills, to design and produce currency that is 
difficult to counterfeit even at a time they most need a strong 
currency. Mr. Speaker, passage of this bill will allow, if a set of 
very carefully defined conditions are met, countries to ask the BEP to 
print their currency. The bill stipulates that there be no cost to U.S. 
taxpayers, no interference with the production of U.S. banknotes and 
that such work be in harmony with U.S. foreign policy goals.
  Passage of H.R. 2509 would create benefits to the United States 
beyond strengthening the currency and economies of our friends, 
although the value of that should not be underestimated. The sheer 
number of banknotes printed for the U.S. economy is so great that 
security features used in each note must be foolproof and uniform. 
However, gaining the expertise to produce those features in high 
volumes is often a long, tedious process. Printing the much smaller 
volumes of currency for smaller countries would allow our top-notch 
printers and engravers to work with cutting-edge techniques that, as 
Mr. Baker of Louisiana points out, may someday end up in use in our own 
money.
  This is important because the Secret Service and the Bureau of 
Engraving have told Congress that it will be necessary to redesign U.S. 
banknotes regularly every six or seven years from here on out to keep 
them secure. Indeed, while the first redesign of U.S. currency since 
the 1920s began in 1996, the next new series is expected to be issued 
starting next year.
  Mr. Speaker, H.R. 2509 would, if enacted, have an added advantage: if 
counterfeiting of world currencies becomes too difficult, it will be 
more difficult for counterfeiters to fund their lethal schemes. That, 
in turn, means not only fewer attacks on the integrity of foreign 
currency but, as the Secret Service notes, fewer attacks on the 
integrity of U.S. currency as well.
  Mr. Speaker, the United States Secret Service does a terrific job of 
policing counterfeiting of U.S. banknotes--so good that although we 
should really pay more attention to the money

[[Page 3494]]

in our pocket, few if any of us actually examine it for fakes, because 
we know there aren't going to be any. Passing this legislation and 
allowing the Treasury Department and the Department of State to work 
with other countries to move their own currencies in the direction of 
similar security--all at no cost to the taxpayer--seems to me to be 
such an easy call that I cannot imagine any serious opposition.
  I urge immediate passage of this legislation.
  Mrs. MALONEY of New York. Mr. Speaker, I yield back the balance of my 
time.
  Mr. BEREUTER. Mr. Speaker, I urge support for the legislation, and I 
yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Nebraska (Mr. Bereuter) that the House suspend the rules 
and pass the bill, H.R. 2509, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of 
those present have voted in the affirmative.
  Mr. BEREUTER. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.

                          ____________________