Housing and Community Development Act of 1992/Title XV/Subtitle E

SUBTITLE E—COUNTERFEIT DETERRENCE

SEC. 1551. SHORT TITLE.

This subtitle may be cited as the ``Counterfeit Deterrence Act of 1992´´.

SEC. 1552. INCREASE IN PENALTIES.

Section 474 of title 18, United States Code, is amended—

(1) by inserting ``(a)´´ before ``Whoever´´ the first time it appears;

(2) by striking ``United States; or´´ at the end of the sixth undesignated paragraph and inserting ``United States—´´;

(3) by striking the seventh undesignated paragraph;

(4) by amending the last undesignated paragraph to read as follows:

``Is guilty of a class C felony.´´; and

(5) by adding at the end thereof the following:

``(b) For purposes of this section, the terms `plate´, `stone´, `thing´, or `other thing´ includes any electronic method used for the acquisition, recording, retrieval, transmission, or reproduction of any obligation or other security, unless such use is authorized by the Secretary of the Treasury. The Secretary shall establish a system (pursuant to section 504) to ensure that the legitimate use of such electronic methods and retention of such reproductions by businesses, hobbyists, press and others shall not be unduly restricted.´´.

SEC. 1553. DETERRENTS TO COUNTERFEITING.

(a) IN GENERAL—

Chapter 25 of title 18, United States Code, is amended by inserting after section 474 the following new section:

``Sec. 474A. Deterrents to counterfeiting of obligations and securities

``(a) Whoever has in his control or possession, after a distinctive paper has been adopted by the Secretary of the Treasury for the obligations and other securities of the United States, any similar paper adapted to the making of any such obligation or other security, except under the authority of the Secretary of the Treasury, is guilty of a class C felony.

``(b) Whoever has in his control or possession, after a distinctive counterfeit deterrent has been adopted by the Secretary of the Treasury for the obligations and other securities of the United States by publication in the Federal Register, any essentially identical feature or device adapted to the making of any such obligation or security, except under the authority of the Secretary of the Treasury, is guilty of a class C felony.

``(c) As used in this section—

``(1) the term `distinctive paper´ includes any distinctive medium of which currency is made, whether of wood pulp, rag, plastic substrate, or other natural or artificial fibers or materials; and

``(2) the term `distinctive counterfeit deterrent´ includes any ink, watermark, seal, security thread, optically variable device, or other feature or device;

``(A) in which the United States has an exclusive property interest; or

``(B) which is not otherwise in commercial use or in the public domain and which the Secretary designates as being necessary in preventing the counterfeiting of obligations or other securities of the United States.´´.

(b) CHAPTER ANALYSIS—

The chapter analysis for chapter 25 of title 18, United States Code, is amended by adding after the item for section 474 the following:

``474A. Deterrents to counterfeiting of obligations and securities.´´.

SEC. 1554. REPRODUCTIONS OF CURRENCY.

Section 504 of title 18, United States Code, is amended—

(1) in paragraph (1)(D), by striking the comma at the end thereof and inserting a period;

(2) in paragraph (1)—

(A) by striking ``for philatelic´´ from the text following subparagraph (D) and all that follows through ``albums).´´; and

(B) by adding at the end the following new sentence:

``The Secretary of the Treasury shall prescribe regulations to permit color illustrations of such currency of the United States as the Secretary determines may be appropriate for such purposes.´´.

(3) by redesignating paragraph (2) as paragraph (3) and inserting after paragraph (1) the following new paragraph:

``(2) The provisions of this section shall not permit the reproduction of illustrations of obligations or other securities, by or through electronic methods used for the acquisition, recording, retrieval, transmission, or reproduction of any obligation or other security, unless such use is authorized by the Secretary of the Treasury. The Secretary shall establish a system to ensure that the legitimate use of such electronic methods and retention of such reproductions by businesses, hobbyists, press or others shall not be unduly restricted.´´; and

(4) in paragraph (3), as redesignated by paragraph (3) of this subsection, by striking ``but not for advertising purposes except philatelic advertising,´´.