Rule2023-14204
Distinctive Paper and Distinctive Counterfeit Deterrents for United States Federal Reserve Notes
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
July 6, 2023
Effective
August 7, 2023
Issuing agencies
Treasury DepartmentEngraving and Printing Bureau
Abstract
This final rule updates the description of the distinctive paper and distinctive counterfeit deterrents used to guard against counterfeit and fraudulently altered United States (U.S.) Federal Reserve notes. This final rule adopts a January 18, 2023, proposed rule without change.
Full Text
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<title>Federal Register, Volume 88 Issue 128 (Thursday, July 6, 2023)</title>
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[Federal Register Volume 88, Number 128 (Thursday, July 6, 2023)]
[Rules and Regulations]
[Pages 43062-43063]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-14204]
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DEPARTMENT OF THE TREASURY
Bureau of Engraving and Printing
31 CFR Part 601
Distinctive Paper and Distinctive Counterfeit Deterrents for
United States Federal Reserve Notes
AGENCY: Bureau of Engraving and Printing, Treasury.
ACTION: Final regulations.
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SUMMARY: This final rule updates the description of the distinctive
paper and distinctive counterfeit deterrents used to guard against
counterfeit and fraudulently altered United States (U.S.) Federal
Reserve notes. This final rule adopts a January 18, 2023, proposed rule
without change.
DATES: Effective August 7, 2023.
FOR FURTHER INFORMATION CONTACT: Leslie J. Rivera Pag[aacute]n,
Attorney-Advisor, Office of Chief Counsel, U.S. Department of the
Treasury, Bureau of Engraving and Printing, Room 419A, 14th & C Streets
SW, Washington, DC 20028, phone at (202) 874-2500 or fax (202) 874-
2951.
SUPPLEMENTARY INFORMATION:
Background and Proposed Rule
The Department of the Treasury, Bureau of Engraving and Printing's
(BEP) mission is to develop and manufacture U.S. Federal Reserve notes
that are trusted worldwide. Accordingly, the Secretary of the Treasury
has delegated specific authority and responsibilities related to
producing U.S. Federal Reserve notes to the Director of BEP only.
(Treasury Order 101-07, Delegation to the Director, Bureau of Engraving
and Printing, for the Production of Currency Notes to Meet the Demands
of the Federal Reserve Banks, January 4, 2021.)
On January 18, 2023, BEP published a notice of proposed rulemaking
(REG-00854-23) in the Federal Register (88 FR 2871). The BEP is
adopting as final that proposed rule, which clarifies the description
of the distinctive paper and distinctive counterfeit deterrents
separately for U.S. Federal Reserve notes, removes obsolete language,
aligns the regulation to the current state-of-art and emerging
technologies generated as a result of BEP's research and development
initiatives, clarifies the agency's authority for adopting distinctive
paper and distinctive counterfeits deterrents, and announces the
adoption of new distinctive paper and counterfeit deterrents by the
Secretary of the Treasury.
This Final Rule
The public comment period on the proposed rule closed on March 20,
2023. No comments were received from the public in response to the
notice of proposed rulemaking. Accordingly, BEP adopts the proposed
regulation as the final regulation without modification for the reasons
discussed in the proposed rule and this preamble.
Procedural Analyses
A. Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) (RFA)
requires agencies to prepare an initial regulatory flexibility analysis
(IRFA) to determine the economic impact of the rule on small entities.
A small entity is defined as a small business, organization, or
governmental jurisdiction; an individual is not a small entity. Section
605(b) of the RFA allows an agency to prepare a certification instead
of an IRFA if the rule does not have a significant economic impact on a
substantial number of small entities. Pursuant to 5 U.S.C. 605(b), it
is hereby certified that this regulation will not have a significant
economic impact on a substantial number of small entities. The rule is
limited to updating the description of the distinctive paper and
distinctive counterfeit deterrents used to guard against counterfeit
and fraudulently altered U.S. Federal Reserve notes and other
obligations and securities in accordance with the U.S. Code.
Accordingly, the rule will have no direct impact on small entities.
B. Regulatory Planning and Review (Executive Orders 12866 and 13563)
Executive Orders 13563 and 12866 direct agencies to assess the
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). Executive
Order 13563 emphasizes the importance of quantifying costs and
benefits, reducing costs, harmonizing rules, and promoting flexibility.
BEP has determined that this rule relates to the agency organization
and management; therefore, Executive Orders 13563 and 12866 do not
apply to this rule. This rule is not a ``significant regulatory
action'' under Executive Order 12866.
C. Unfunded Mandates Reform Act of 1995
Section 202 of the Unfunded Mandates Reform Act of 1995 requires
that agencies assess anticipated costs and benefits and take certain
other actions before issuing a rule that includes any federal mandate
that may result in expenditures in any one year by a state, local, or
tribal government, in the aggregate, or by the private sector, of $100
million in 1995 dollars, updated annually for inflation. This
regulation does not include any federal mandate that may result in
expenditures by state,
[[Page 43063]]
local, or tribal governments or the private sector exceeding that
threshold.
D. Federalism
Executive Order 13132 (titled Federalism) prohibits an agency from
publishing any rule that has federalism implications if the rule either
imposes substantial, direct compliance costs on state and local
governments and is not required by statute or preempts state law unless
the agency meets the consultation and funding requirements of section 6
of the Executive Order. This rule does not have federalism implications
nor impose substantial direct compliance costs on state and local
governments or preempt state law within the meaning of the Executive
Order.
E. Paperwork Reduction Act (PRA) Notices
The Paperwork Reduction Act does not apply because this rule did
not impose information collection requirements that require the
approval of the Office of Management and Budget under 44 U.S.C. 3501,
et seq.
F. Severability
BEP has considered how this regulation should be construed if any
provision were held to be invalid or unenforceable. The distinctive
paper and each of the distinctive counterfeit deterrents contribute
independently to the security of U.S. Federal Reserve notes.
Accordingly, were protection for any of these items stayed or
invalidated by a reviewing court, prohibition of the unauthorized
possession or control of the remaining items would continue to serve
the intended purpose of guarding against counterfeit and fraudulently
altered U.S. Federal Reserve notes.
List of Subjects in 31 CFR Part 601
Currency, Securities, Printing.
For the reasons stated in the preamble, BEP revises 31 CFR part 601
to read as follows:
PART 601--DISTINCTIVE PAPER AND DISTINCTIVE COUNTERFEIT DETERRENTS
FOR UNITED STATES FEDERAL RESERVE NOTES
Sec.
601.1 Notice and scope.
601.2 Distinctiveness requirement.
601.3 Distinctive paper.
601.4 Distinctive counterfeit deterrents.
601.5 Penalty for unauthorized control or possession.
Authority: 5 U.S.C. 301; 12 U.S.C. 418, 421; 18 U.S.C. 474A; 31
U.S.C. 321.
Sec. 601.1 Notice and scope.
The regulation in this part governs the distinctive paper and
distinctive counterfeit deterrents adopted by the Secretary of the
Treasury for United States Federal Reserve notes, which are subject to
18 U.S.C. 474A. The Director of Bureau of Engraving and Printing, by
delegated authority, hereby gives notice of the distinctive paper and
distinctive counterfeit deterrents adopted by the Secretary of the
Treasury.
Sec. 601.2 Distinctiveness requirement.
(a) The Secretary of the Treasury has adopted distinctive paper and
distinctive counterfeit deterrents:
(1) In which the United States has an exclusive property interest;
or
(2) That are not otherwise in commercial use or the public domain
and are necessary for preventing the counterfeiting of United States
Federal Reserve notes.
(b) The distinctive paper and counterfeit deterrents are used in
United States Federal Reserve notes.
Sec. 601.3 Distinctive paper.
The distinctive paper is a cream-white currency note paper with
fibers, colored red and blue, evenly distributed throughout the
currency note paper. The distinctive paper shall contain distinctive
counterfeit deterrents in the currency note paper denominations
prescribed by the Secretary of the Treasury.
Sec. 601.4 Distinctive counterfeit deterrents.
The distinctive counterfeit deterrents that may be used in the
denominations of United States Federal Reserve notes as prescribed by
the Secretary of the Treasury are:
(a) Security threads containing graphics consisting of the
designation ``USA'' and the denomination of the currency note,
expressed in alphabetic or numeric characters.
(b) Optically variable inks with material characteristics.
(c) Non-visual characteristic inks with material characteristics.
(d) Optically variable thread (three-dimensional (3-D) security
ribbon and micro-optic stripe) visible in front or back of the currency
note.
(e) Non-visual characteristic features with material
characteristics.
Sec. 601.5 Penalty for Unauthorized Control or Possession.
(a) Control or possession of distinctive paper and/or distinctive
counterfeit deterrents adopted in Sec. Sec. 601.3 and 601.4 require
authorization by the Secretary of the Treasury.
(b) The penalty for unauthorized control and/or possession of
distinctive paper and/or distinctive counterfeit deterrents adopted in
Sec. Sec. 601.3 and 601.4 is found at 18 U.S.C. 474A.
Leonard R. Olijar,
Director.
[FR Doc. 2023-14204 Filed 7-5-23; 8:45 am]
BILLING CODE 4840-01-P
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</html>Indexed from Federal Register on July 6, 2023.
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