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[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

                                _______
                                

 September 14, 2000.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

   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

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                          SUBTITLE IV--MONEY

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                    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.

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