Color Illustrations of U.S. Currency

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

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

f 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

ustration 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;

8 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, 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]

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