[Federal Register Volume 61, Number 106 (Friday, May 31, 1996)]
[Rules and Regulations]
[Pages 27280-27281]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-13693]



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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: Final rule.

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SUMMARY: Pursuant to the Counterfeit Deterrence Act of 1992, the Secret 
Service permits color illustrations of United States currency provided 
such illustrations are consistent with the requirements set out in this 
final rule. Prior to the issuance of this rule, color illustrations of 
U.S. currency were not permitted.

EFFECTIVE DATE: May 31, 1996.

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

SUPPLEMENTARY INFORMATION: On June 26, 1995 (60 FR 32929), the Secret 
Service proposed to amend title 31, chapter IV of the Code of Federal 
Regulations by adding part 411 which would permit color illustrations 
of U.S. currency. At the time this proposal was issued, illustrations 
of U.S. currency were only permitted provided the illustration was in 
black and white and was 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 were 
destroyed after their final use. 18 U.S.C. 504. Color illustrations of 
U.S. currency were not permitted.
    Interested parties were invited to participate in the rulemaking 
proceeding by submitting written comments on the proposal. Five 
comments were received. The Secret Service carefully reviewed and 
evaluated these comments. In considering these comments, the Secret 
Service carefully weighed the recommendations and comments with the 
federal government's compelling interest of preventing the 
counterfeiting of U.S. currency.
    Specifically, all the commentators to some extent questioned the 
need for and practicality of the requirement that the term ``non-
negotiable'' be prominently and conspicuously placed across the center 
portion of any color illustration. After careful consideration, the 
Secret Service has decided to amend its proposal by removing the 
requirement

[[Page 27281]]

that the term ``non-negotiable'' be placed on any color illustration.
    One comment addressed the requirement that ``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.'' Proposed 31 CFR 
411.1(a)(4). Specifically, this comment questioned the need for the 
immediate destruction of such items. After careful consideration of 
this comment and in order to be consistent with 18 U.S.C. 504, the 
Secret Service has decided to remove the word ``immediately'' from the 
final rule. Therefore, both the final rule and 18 U.S.C. 504 require 
that such items be destroyed after their ``final use'' in accordance 
with each respective provision.
    Another comment suggested that the proposed rule should be expanded 
by identifying certain kinds of illustrations that could be considered 
not to give rise to an inference of an intent to defraud. The Secret 
Service disagrees. It is the Secret Service's position that a single 
rule applicable to all color illustrations be implemented for the sake 
of simplicity and consistency. Such a rule will be more easily 
understood by the public than a rule which contains exceptions for 
various types of illustrations. Further, not all of the statutory 
sections concerning the reproduction of U.S. currency require that an 
intent to defraud be established in order for a violation of law to 
occur. See, e.g., 18 U.S.C. 474.
    The final rule requires the color illustrations to comply with the 
current size restrictions set out in 18 U.S.C. 504. In addition, such 
color illustrations must be one-sided.
    The exceptions established 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. However, 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 regulation.
    It has been determined that this document is not a significant 
regulatory action under Executive Order 12866. This rule permits the 
color illustrations of U.S. currency, which heretofore were prohibited 
by law. Further, 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.
    Pursuant to 5 U.S.C. 553, it is also found and determined that good 
cause exists for not postponing the effective date of this rule 30 days 
after publication in the Federal Register because this rule permits a 
practice heretofore prohibited by statute.

List of Subjects in 31 CFR Part 411

    Counterfeiting, Currency.

    In consideration of the foregoing, the Secret Service amends title 
31, chapter IV of the Code of Federal Regulations 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 (September 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 illustration be one-sided; and
    (3) 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 after their final use in accordance with this section.
    (b) [Reserved].
Paul A. Hackenberry,
Assistant Director, Office of Investigations.
[FR Doc. 96-13693 Filed 5-30-96; 8:45 am]
BILLING CODE 4810-42-P