[Federal Register Volume 60, Number 122 (Monday, June 26, 1995)]
[Proposed Rules]
[Pages 32929-32930]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-15523]



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DEPARTMENT OF THE TREASURY


Secret Service

31 CFR Part 411

[1505-AA69]


Color Illustrations of U.S. Currency

AGENCY: Secret Service, Treasury.

ACTION: Proposed rule.

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SUMMARY: Pursuant to the Counterfeit Deterrence Act of 1992, the Secret 
Service proposes to permit color illustrations of United States 
currency. Currently, color illustrations of U.S. currency are not 
permitted. The intended effect of the proposed rule is to permit color 
illustrations of U.S. currency while maintaining the safeguards needed 
to prevent the counterfeiting of United States currency.

DATES: Comments must be submitted on or before August 25, 1995.

ADDRESSES: Written comments should be forwarded to John J. Kelleher, 
Chief Counsel, United States Secret Service, 1800 G Street, NW., Room 
842, Washington, DC 20223.

FOR FURTHER INFORMATION CONTACT: Mark Mulligan, Attorney/Advisor, 
Office of Chief Counsel, U.S. Secret Service, 1800 G Street, NW., Room 
842, Washington, DC 20223, (202) 435-5771.

SUPPLEMENTARY INFORMATION:

Background

    Currently, illustrations of U.S. currency are permitted provided 
the illustration is in black and white and is of a size less than 
three-fourths or more than one and one-half, in linear dimension, of 
each part so illustrated, and provided the negatives and plates used in 
making the illustration are destroyed. 18 U.S.C. 504. The Counterfeit 
Deterrence Act of 1992, Pub. L. No. 102-550 (1992), amended 18 U.S.C. 
504 by requiring ``[t]he Secretary of the Treasury [to] prescribe 
regulations to permit color illustrations of such currency of the 
United States as the Secretary determines may be appropriate for such 
purposes.'' Treasury Directive Number 15-56, 58 FR 48539 (September 16, 
1993), delegated the responsibility and authority to prescribe these 
regulations to the Director, United States Secret Service.
    The proposed rule would allow the color illustration of U.S. 
currency. In developing this proposal, the Secret Service carefully 
weighed the interest in color illustrations with the federal 
government's compelling interest of preventing the counterfeiting of 
U.S. currency. The proposed rule is designed to allow the color 
illustration of U.S. currency in a manner which both prevents the 
possibility of these color illustrations being used as instruments of 
fraud and avoids the creation of conditions which may facilitate 
counterfeiting. In addition, the proposal recognizes technological 
advances in both computer graphics and other reprographics and requires 
that such methods comply with the requirements of the proposed rule.
    The proposed rule would require the permitted color illustrations 
to comply with the current size restrictions set out in 18 U.S.C. 504. 
Any color illustration permitted under the proposed rule would also be 
required to have the term ``non-negotiable'' be prominently and 
conspicuously placed across the center portion of any illustration. In 
addition, the legend ``non-negotiable'' would be required to appear in 
clearly legible, bold, black, block letters, being a minimum of one 
quarter inch high, and covering at least one third of the linear length 
of the illustration. The legend ``non-negotiable'' must appear 
simultaneously with the creation, production, printing, publishing and 
transmission of the illustration on all copies of the illustration or 
any part thereof, and on all negatives, plates, positives, digitized 
storage medium, graphic files, magnetic medium, optical storage 
devices, or other reproductive method. In addition, such color 
illustrations would be required to be only one-sided.
    The exceptions proposed by this rule, like the exceptions set out 
in 18 U.S.C. 504, apply notwithstanding any other provision of chapter 
25 of Title 18 of the U.S. Code. It should specifically be noted that 
the requirement that the term ``non-negotiable'' appear simultaneously 
with the creation, production, printing, publishing and transmission of 
the illustration on all copies of the illustration or any part thereof, 
and on all negatives, plates, positives, digitized storage medium, 
graphic files, magnetic medium, optical storage devices, or other 
reproductive method does not waive or repeal the prohibition in 18 
U.S.C. 333 against the mutilation or disfiguring of currency with the 
intent to render such currency unfit to be reissued. Also, the criminal 
liability imposed by 18 U.S.C. 474 and other applicable sections of 
chapter 25 of Title 18 of the U.S. Code could apply where a color 
illustration of U.S. currency fails to meet the requirements imposed by 
this proposed regulation.
Executive Order 12866

    It has been determined that this document is not a significant 
regulatory action under Executive Order 12866. This proposed rule is 
intended to permit the color illustrations of certain U.S. currency, 
which at the present time are prohibited by law.

Regulatory Flexibility Act

    Pursuant to section 605(b) of the Regulatory Flexibility Act and 
for the reasons set forth above, it is hereby certified that this 
regulation will not have a significant economic impact on a substantial 
number of small entities. Accordingly, a regulatory flexibility 
analysis is not required.

List of Subjects in 31 CFR Part 411

    Color illustration, Currency.

    For the reasons set out in the preamble, it is proposed that title 
31, chapter IV of the Code of Federal Regulations be amended by adding 
part 411 as set forth below.

PART 411--COLOR ILLUSTRATIONS OF UNITED STATES CURRENCY

    Authority: 18 U.S.C. 504; Treasury Directive Number 15-56, 58 FR 
48539 (Sept. 16, 1993)


Sec. 411.1  Color illustrations authorized.

    (a) Notwithstanding any provision of chapter 25 of Title 18 of the 
U.S. Code, authority is hereby given for the printing, publishing or 
importation, or the making or importation of the necessary plates or 
items for such printing or publishing, of color illustrations of U.S. 
currency provided that:
    (1) The illustration be of a size less than three-fourths or more 
than one and one-half, in linear dimension, of each part of any matter 
so illustrated;
    (2) The term ``non-negotiable'' be placed on any illustration in 
clearly legible, bold, black, block letters, being a minimum of one 
quarter inch high, [[Page 32930]] and prominently and conspicuously 
placed across the center portion of any illustration, covering at least 
one third of the linear length of the illustration. The term ``non-
negotiable'' must appear simultaneously with the creation, production, 
printing, publishing and transmission of the illustration on all copies 
of the illustration or any part thereof and on all negatives, plates, 
positives, digitized storage medium, graphic files, magnetic medium, 
optical storage devices, or other reproductive method;
    (3) The illustration be one-sided; and
    (4) All negatives, plates, positives, digitized storage medium, 
graphic files, magnetic medium, optical storage devices, and any other 
thing used in the making of the illustration that contain an image of 
the illustration or any part thereof shall be destroyed and/or deleted 
or erased immediately after their final use in accordance with this 
section.
    (b) [Reserved]
Paul A. Hackenberry,
Assistant Director, Office of Investigations.
[FR Doc. 95-15523 Filed 6-23-95; 8:45 am]
BILLING CODE 4810-42-P