[House Report 106-849]
[From the U.S. Government Publishing Office]
106th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 106-849
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BUREAU OF ENGRAVING AND PRINTING SECURITY PRINTING AMENDMENTS ACT OF
2000
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September 14, 2000.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
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Mr. Leach, from the Committee on Banking and Financial Services,
submitted the following
R E P O R T
[To accompany H.R. 4096]
[Including cost estimate of the Congressional Budget Office]
The Committee on Banking and Financial Services, to whom was
referred 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, having considered the same, report
favorably thereon without amendment and recommend that the bill
do pass.
Purpose and Summary
The purpose of H.R. 4096, the Bureau of Engraving and
Printing Security Printing Amendments Act of 2000, is to
authorize the Secretary of the Treasury to produce currency,
stamps and other security documents for foreign governments,
and security documents for State governments and their
political subdivisions. It requires that any production on
behalf of non-Federal government entities not interfere with
the ability of the Treasury to satisfy the engraving and
printing needs of the United States, and mandates that any
production for a foreign government be subject to a
determination by the Secretary of State that such production is
consistent with the foreign policy of the United States. It
further provides that the Secretary of the Treasury shall
charge fees and receive reimbursements for the engraving and
printing contemplated in the bill.
Background and Need for Legislation
Currently, the Bureau of Engraving and Printing may only
produce currency for the Federal Reserve and security documents
for Federal entities, such as postage stamps for the United
States Postal Service. The bill was introduced ``by request''
of the administration, and reflects both an effort to allow the
United States to help foreign governments develop stable
currency systems and facilitate international commerce, and to
allow the Bureau to realize production efficiencies. The
efficiencies would include the use of excess production
capacity at the Bureau and the possibility to produce in
relatively small production runs and at the request of a
foreign nation, currency with cutting-edge, anti-counterfeiting
features that eventually could find their way into the much
larger production runs of United States currency.
The Committee understands that the Secretary of the
Treasury will consider using any technology developed in any
printing program authorized by this legislation in the
production of United States currency.
Such technology could include printing techniques,
engraving techniques, or methods for authenticating or
identifying currency.
Hearings
H.R. 4096, the Bureau of Engraving and Printing Security
Printing Amendments Act of 2000, was introduced March 28, 2000,
by Representative Spencer T. Bachus, chairman of the Domestic
and International Monetary Policy Subcommittee of the Committee
on Banking and Financial Services.
On March 28, 2000, the Subcommittee held a regular
oversight hearing on the operations of the Bureau of Engraving
and Printing and of the United States Mint. Testifying were:
Thomas Ferguson, Director of the Bureau of Engraving and
Printing; Louise Roseman, Director of the Division of Reserve
Bank of Operations and Payments Systems at the Federal Reserve
Board; Bruce Townsend, US Secret Service; and John Mitchell,
Deputy Director of the US Mint.
Committee Consideration and Votes
On July 19, 2000, the Subcommittee met in open session to
mark up H.R. 4096. During the markup, one amendment was offered
by Mr. Sherman to levy a surcharge of between 10 and 20 percent
on all printing done under the act for foreign governments or
their political subdivisions. The amendment was defeated on a
recorded vote of 8 to 11, with a quorum being present. The
Subcommittee passed and favorably reported the bill to the full
Committee.
YEAS NAYS
Dr. Paul Mr. Bachus
Mr. Ose Mr. Castle
Dr. Weldon Mr. Lucas
Mr. Toomey Mr. Metcalf
Mr. Watt Mr. Ryan of Wisconsin
Mr. Sherman Mrs. Biggert
Mr. Inslee Mr. Green
Ms. Schakowsky Ms. Waters
Mr. Meeks
Ms. Lee
Mr. Moore
On July 27, 2000, the full Committee on Banking and
Financial Services met in open session to mark up H.R. 4096.
There were no amendments and the bill was adopted by a voice
vote. Subsequently, with a quorum being present, H.R. 4096 was
ordered reported, by a voice vote.
Committee Oversight Findings
In compliance with clause 3(c)(1) of rule XIII of the Rules
of the House of Representatives, the Committee reports that the
findings and recommendations of the Committee, based on
oversight activities under clause 2(b)(1) of rule X of the
Rules of the House of Representatives, are incorporated in the
descriptive portions of this report.
Committee on Government Reform
In compliance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, no oversight findings have
been submitted to the Committee by the Committee on Government
Reform.
Constitutional Authority
In compliance with clause 3(d)(1) of rule XIII of the Rules
of the House of Representatives, the constitutional authority
for Congress to enact this legislation is derived from Article
I, section 8, clause 1 (relating to the general welfare of the
Untied States): Article I, section 8, clause 3 (relating to
Congressional power to regulate commerce); Article 1, section
8, clause 5 (relating to the power ``to coin money'' and
``regulate the value thereof''); Article I, section 8, clause
18 (relating to making all laws necessary and proper for
carrying into execution powers vested by the Constitution in
the government of the United States).
New Budget Authority and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, please see the attached
Congressional Budget Office cost estimate.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Congressional Accountability Act
The reporting requirement under section 102(b)(3) of the
Congressional Accountability Act (P.L. 104-1) is inapplicable
because this legislation does not relate to terms and
conditions of employment or access to public services or
accommodations.
Congressional Budget Office Cost Estimate and Unfunded Mandates
Analysis
H.R. 4096--Bureau of Engraving and Printing Security Printing
Amendments Act of 2000
H.R. 4096 would allow the Bureau of Engraving and Printing
(BEP) to print currency, postage stamps, and other security
documents at the request of foreign governments. The bureau has
had several recent requests to perform such services. In
addition, the bill would allow BEP to print security documents
for state and local governments. Because foreign, state, or
local governments would pay BEP for the full cost of producing
any documents, and because BEP has the authority to retain and
spend such collections without further appropriation, CBO
estimates that enacting H.R. 4096 would have no significant
budgetary impact. Pay-as-you-go procedures would apply,
however, since the bill could affect direct spending.
H.R. 4096 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act. Any
costs to state or local governments as a result of enactment of
this bill would be incurred voluntarily as part of a business
relationship.
The CBO staff contact is John R. Righter. This estimate was
approved by Robert A. Sunshine, Assistant Director for Budget
Analysis.
Department of the Treasury,
Washington, DC, July 26, 2000.
Hon. Jim Leach,
Chairman, Committee on Banking and Financial Services,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Department of the Treasury is
pleased that H.R. 4096, the ``Bureau of Engraving and Printing
Security Printing Amendments Act of 2000,'' was favorably
reported by the Subcommittee on Domestic and International
Monetary Policy and is now pending consideration by the
Committee on Banking and Financial Services. I respectfully
urge the Committee to favorably report the Subcommittee version
of the bill for prompt consideration by the full House of
Representatives.
The bill would authorize Treasury's Bureau of Engraving and
Printing (BEP) to print, on a fully reimbursement basis,
securities and other documents for States and their political
subdivisions and foreign governments. Any production on behalf
of a foreign government would be subject to a determination by
the Secretary of State that it is consistent with the foreign
policy of the United States.
An amendment was offered at Subcommittee markup to require
a 10 to 20 percent surcharge for work performed by the BEP on
behalf of foreign governments. The Department of the Treasury
was unable to support the amendment, which failed on a
bipartisan vote. Because existing Federal statutes require the
BEP to secure reimbursement for all direct and indirect costs
as well as imputed long-term capital expenses, legislation is
not necessary to ensure that work for foreign governments is
performed without cost to U.S. taxpayers. Imposition of a
surcharge would destroy the basic intent of the bill by placing
the BEP at a competitive disadvantage with respect to foreign
printing competitors. Additionally, inflated fees would most
harm impoverished, developing nations who stand to receive the
greatest benefit from Treasury's expertise in designing and
printing securities.
Enactment of H.R. 4096 would permit the United States to
assist developing nations with the establishment of stable
currency systems and to produce security products to facilitate
international commerce. The legislation would enable the BEP to
create efficiencies by establishing more consistent production
schedules, and to test, without cost to U.S. taxpayers, new
technologies and techniques and apply such experience as the
Bureau develops and produces future generations of U.S.
currency.
Prompt consideration of the bill by the full Committee and
the House of Representative would be very much appreciated.
Sincerely,
Lawrence H. Summers.
Section-by-Section Analysis
Section 1. Short title
Section 1 provides that the bill may be cited as the
``Bureau of Engraving and Printing Security Printing Amendments
Act of 2000.''
Section 2. Production of documents for foreign governments
This section authorizes the Secretary of the Treasury to
produce currency, stamps, and other security documents for
foreign governments, and security documents for State
governments and their political subdivisions. It requires that
any production on behalf of non-Federal government entities not
interfere with the ability of the Treasury to satisfy the
engraving and printing needs of the United States, and mandates
that any production for a foreign government be subject to a
determination by the Secretary of State that such production is
consistent with the foreign policy of the United States. It
further provides the Secretary of the Treasury with the
authority to charge fees and receive reimbursements for
engraving and printing services.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
TITLE 31, UNITED STATES CODE
* * * * * * *
SUBTITLE IV--MONEY
* * * * * * *
CHAPTER 51--COINS AND CURRENCY
* * * * * * *
SUBCHAPTER II--GENERAL AUTHORITY
* * * * * * *
Sec. 5114. Engraving and printing currency and security documents
[(a) The Secretary of the Treasury] (a) Authority To Engrave
and Print.--
(1) In general.--The Secretary of the Treasury shall
engrave and print United States currency and bonds of
the United States Government and currency and bonds of
United States territories and possessions from intaglio
plates on plate printing presses the Secretary selects.
However, other security documents and checks may be
printed by any process the Secretary selects. Engraving
and printing shall be carried out within the Department
of the Treasury if the Secretary decides the engraving
and printing can be carried out as cheaply, perfectly,
and safely as outside the Department.
(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.
* * * * * * *
SUBCHAPTER IV--BUREAU OF ENGRAVING AND PRINTING
* * * * * * *
Sec. 5143. Payment for services
The Secretary of the Treasury shall impose charges for Bureau
of Engraving and Printing services the Secretary provides to an
agency, any foreign government, or any individual state or
other political subdivision of any foreign government. The
charges shall be in amounts the Secretary considers adequate to
cover the costs of the services (including administrative costs
related to providing the services). The agency, foreign
government, or individual state or other political subdivision
of a foreign government shall pay promptly bills submitted by
the Secretary.
* * * * * * *