[Congressional Record (Bound Edition), Volume 159 (2013), Part 9]
[House]
[Pages 12576-12578]
[From the U.S. Government Publishing Office, www.gpo.gov]




                    COLLECTIBLE COIN PROTECTION ACT

  Mr. BURGESS. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 2754) to amend the Hobby Protection Act to make unlawful the 
provision of assistance or support in violation of that Act, and for 
other purposes.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 2754

       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 ``Collectible Coin Protection 
     Act''.

     SEC. 2. PROVISION OF ASSISTANCE OR SUPPORT.

       The Hobby Protection Act (15 U.S.C. 2101 et seq.) is 
     amended--
       (1) in section 2--
       (A) in subsection (b), by inserting ``, or the sale in 
     commerce'' after ``distribution in commerce'';
       (B) by redesignating subsection (d) as subsection (e) and 
     inserting after subsection (c) the following:
       ``(d) Provision of Assistance or Support.--It shall be a 
     violation of subsection (a) or (b) for a person to provide 
     substantial assistance or support to any manufacturer, 
     importer, or seller if that person knows or should have known 
     that the manufacturer, importer, or seller is engaged in any 
     act or practice that violates subsection (a) or (b).''; and
       (C) in subsection (e) (as so redesignated), by striking 
     ``and (b)'' and inserting ``(b), and (d)'';
       (2) in section 3--
       (A) by striking ``If any person'' and inserting ``(a) In 
     General.--If any person'';
       (B) by striking ``or has an agent'' and inserting ``, has 
     an agent, transacts business, or wherever venue is proper 
     under section 1391 of title 28, United States Code''; and

[[Page 12577]]

       (C) by adding at the end the following:
       ``(b) Trademark Violations.--If the violation of section 2 
     (a) or (b) or a rule under section 2(c) also involves 
     unauthorized use of registered trademarks belonging to a 
     collectibles certification service, the owner of such 
     trademarks shall have, in addition to the remedies provided 
     in subsection (a), all rights provided under sections 34, 35, 
     and 36 of the Trademark Act of 1946 (15 U.S.C. 1116, 1117, 
     and 1118) for violations of such Act.''; and
       (3) in section 7, by adding at the end the following:
       ``(8) The term `collectibles certification service' means a 
     person recognized by collectors for providing independent 
     certification that collectible items are genuine.
       ``(9) The term `Trademark Act of 1946' means the Act 
     entitled `An Act to provide for the registration and 
     protection of trademarks used in commerce, to carry out the 
     provisions of certain international conventions, and for 
     other purposes', approved July 5, 1946 (15 U.S.C. 1051 et 
     seq.).''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Texas (Mr. Burgess) and the gentleman from North Carolina (Mr. 
Butterfield) each will control 20 minutes.
  The Chair recognizes the gentleman from Texas.


                             General Leave

  Mr. BURGESS. Mr. Speaker, I ask unanimous consent that all Members 
have 5 legislative days in which to revise and extend their remarks and 
insert extraneous materials on the bill.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Texas?
  There was no objection.
  Mr. BURGESS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, H.R. 2754, the Collectible Coin Protection Act, is a 
simple bill with a simple purpose: to equip honest merchants and 
collectors as well as the Federal Government with the tools needed to 
fight a new wave of counterfeit coins and currency.
  In recent years, the United States Government has taken extraordinary 
steps to make it difficult to counterfeit U.S. currency. Think how the 
$20 bill and other denominations have been redesigned over the last 
decade. As new bills become more difficult to counterfeit, some 
criminals have turned to counterfeiting rare specimens of older 
currency, which have none of the security features that we now 
recognize. Others have invested in counterfeiting rare coins. Some 
people have gone to great lengths to create realistic fakes--using 
modern design software and 3-D laser printers to make extremely close 
replicas, and even purchasing the old equipment used by the mint to 
strike the original coins.
  As you might have guessed, most of the counterfeits are coming from 
China--where else?
  The criminals have also cleverly taken advantage of the certification 
system used by collectors to assure authenticity, and they've turned it 
on its head.
  Grading services, also called collectibles certification services, 
evaluate the authenticity and condition of a rare coin and then put it 
into a special holder called a slab, encapsulating it together with a 
description of the coin and its condition. The slab is designed to 
protect the coin, but it also protects the integrity of the grading. If 
the slab is tampered with, the grading is voided.
  Some counterfeiters have now realized they can counterfeit the slab 
and the certificate as well. This has the advantage of making it harder 
to examine the coin since dealers are reluctant to break open the slab 
to examine the coin more closely unless they are absolutely certain 
that it is a fake.

                              {time}  2015

  H.R. 2754, the Collectible Coin Protection Act, amends the Hobby 
Protection Act to deal with these new problems. Under existing law, it 
is unlawful to make in the United States or to import into the United 
States an imitation coin or other numismatic item unless it is plainly 
and permanently marked with the word ``copy.''
  The Federal Trade Commission has the authority to enforce the Act, 
and there is also a provision allowing private individuals to enjoin 
violations or to recover damages for violations that affect them.
  H.R. 2754 extends the current law in three ways. It makes it unlawful 
to sell, as well as manufacture or import, the counterfeit coin that is 
not marked with the word ``copy.''
  Second, the bill makes it unlawful to provide substantial support or 
assistance to a manufacturer, importer or seller if the person 
providing assistance knows or should have known that the manufacturer, 
importer or seller is engaged in any act or practice that violates the 
Hobby Protection Act.
  Third, the bill provides additional remedies for violations that 
involve unauthorized use of registered trademarks belonging to a 
grading service. The additional remedies are the same that are usually 
provided for under the Trademark Act.
  Mr. Speaker, this bill has no cost to the taxpayer. It should deter 
some of the counterfeiting practices that are now rampant in the 
marketplace and provide additional tools to deal with unrepentant 
dealers who go ahead with their schemes to defraud consumers.
  I reserve the balance of my time.
  Mr. BUTTERFIELD. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I rise tonight in support of H.R. 2754, the Collectible 
Coin Protection Act. I introduced this bill with the bipartisan support 
of Energy and Commerce full committee Ranking Member Mr. Henry Waxman 
and Commerce, Manufacturing and Trade Subcommittee Chairman Mr. Lee 
Terry, as well as three other colleagues, because the manufacture and 
sale of counterfeit coins is rapidly increasing across the country.
  Manufacturing and selling imitation coins is a little-known black 
market industry here in the United States. With the invention of 3-D 
printers, anyone with a computer can now create a fake coin with 
relative ease that, for all intents and purposes, appears genuine in 
size and in color and in weight.
  Unloading these imitation coins off on unsuspecting collectors has 
become big business and cuts to the very core of our ability to control 
and regulate the currency. By the time the collector realizes that he 
has been scammed, it is absolutely too late.
  Current law, Mr. Speaker, makes it illegal to manufacture or import 
imitation coins meant for sale unless that coin is plainly and 
permanently marked with the word ``copy.'' Mr. Burgess made reference 
to that a moment ago.
  My bill would extend current law and make it illegal to sell an 
imitation coin that is not conspicuously marked with the word ``copy.''
  My bill would also make it unlawful for an individual to provide 
substantial support or assistance to anyone who manufactures or imports 
or sells counterfeit imitation coins in violation of the law.
  And this bill would also extend trademark infringement protections 
available under the Trademark Act of 1946 for unauthorized use of a 
registered trademark in connection with an unlawful sale or other 
violation involving an imitation coin.
  Mr. Speaker, my constituents in North Carolina and Americans across 
the country deserve to have the peace of mind to know that they will 
receive what they believe they are purchasing.
  Individuals who sell fake products have a real and significant impact 
on our economy. The manufacture and sale of counterfeit imitation 
currency cannot be permitted to continue.
  I'm confident my bill will provide greater protection for our 
Nation's currency and for those who collect it.
  And so I thank Mr. Burgess, and I thank all of my colleagues. I ask 
my colleagues to support this piece of legislation and vote ``aye.''
  Again, I ask my colleagues to look at this and work with us, and 
let's get it passed and let's stop this black market that's emerging in 
our country.
  I yield back the balance of my time.
  Mr. BURGESS. Mr. Speaker, I urge my colleagues to vote ``aye'' on 
H.R. 2754.
  I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Texas (Mr. Burgess) that the House suspend the rules and 
pass the bill, H.R. 2754.

[[Page 12578]]

  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

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