Collectible Coin Protection Act

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 2754) to amend the Hobby Protection Act to make unlawful the provision of assistance or support in violation of that Act, and for other purposes.

Mr. Speaker, I ask unanimous consent that all Members have 5 legislative days in which to revise and extend their remarks and insert extraneous materials on the bill.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, H.R. 2754, the Collectible Coin Protection Act, is a simple bill with a simple purpose: to equip honest merchants and collectors as well as the Federal Government with the tools needed to fight a new wave of counterfeit coins and currency.

In recent years, the United States Government has taken extraordinary steps to make it difficult to counterfeit

U.S. currency. Think how the $20 bill and other denominations have been redesigned over the last decade. As new bills become more difficult to counterfeit, some criminals have turned to counterfeiting rare specimens of older currency, which have none of the security features that we now recognize. Others have invested in counterfeiting rare coins. Some people have gone to great lengths to create realistic fakes--using modern design software and 3-D laser printers to make extremely close replicas, and even purchasing the old equipment used by the mint to strike the original coins.

As you might have guessed, most of the counterfeits are coming from China--where else?

The criminals have also cleverly taken advantage of the certification system used by collectors to assure authenticity, and they've turned it on its head.

Grading services, also called collectibles certification services, evaluate the authenticity and condition of a rare coin and then put it into a special holder called a slab, encapsulating it together with a description of the coin and its condition. The slab is designed to protect the coin, but it also protects the integrity of the grading. If the slab is tampered with, the grading is voided.

Some counterfeiters have now realized they can counterfeit the slab and the certificate as well. This has the advantage of making it harder to examine the coin since dealers are reluctant to break open the slab to examine the coin more closely unless they are absolutely certain that it is a fake.

H.R. 2754, the Collectible Coin Protection Act, amends the Hobby Protection Act to deal with these new problems. Under existing law, it is unlawful to make in the United States or to import into the United States an imitation coin or other numismatic item unless it is plainly and permanently marked with the word ``copy.''

The Federal Trade Commission has the authority to enforce the Act, and there is also a provision allowing private individuals to enjoin violations or to recover damages for violations that affect them.

H.R. 2754 extends the current law in three ways. It makes it unlawful to sell, as well as manufacture or import, the counterfeit coin that is not marked with the word ``copy.''

Second, the bill makes it unlawful to provide substantial support or assistance to a manufacturer, importer or seller if the person providing assistance knows or should have known that the manufacturer, importer or seller is engaged in any act or practice that violates the Hobby Protection Act.

Third, the bill provides additional remedies for violations that involve unauthorized use of registered trademarks belonging to a grading service. The additional remedies are the same that are usually provided for under the Trademark Act.

Mr. Speaker, this bill has no cost to the taxpayer. It should deter some of the counterfeiting practices that are now rampant in the marketplace and provide additional tools to deal with unrepentant dealers who go ahead with their schemes to defraud consumers.

I reserve the balance of my time.

Mr. Speaker, I urge my colleagues to vote ``aye'' on

Mr. Speaker, I yield myself such time as I may consume.

(Mr. BUTTERFIELD asked and was given permission to revise and extend his remarks.)

Mr. Speaker, I rise tonight in support of H.R. 2754, the Collectible Coin Protection Act. I introduced this bill with the bipartisan support of Energy and Commerce full committee Ranking Member Mr. Henry Waxman and Commerce, Manufacturing and Trade Subcommittee Chairman Mr. Lee Terry, as well as three other colleagues, because the manufacture and sale of counterfeit coins is rapidly increasing across the country.

Manufacturing and selling imitation coins is a little-known black market industry here in the United States. With the invention of 3-D printers, anyone with a computer can now create a fake coin with relative ease that, for all intents and purposes, appears genuine in size and in color and in weight.

Unloading these imitation coins off on unsuspecting collectors has become big business and cuts to the very core of our ability to control and regulate the currency. By the time the collector realizes that he has been scammed, it is absolutely too late.

Current law, Mr. Speaker, makes it illegal to manufacture or import imitation coins meant for sale unless that coin is plainly and permanently marked with the word ``copy.'' Mr. Burgess made reference to that a moment ago.

My bill would extend current law and make it illegal to sell an imitation coin that is not conspicuously marked with the word ``copy.''

My bill would also make it unlawful for an individual to provide substantial support or assistance to anyone who manufactures or imports or sells counterfeit imitation coins in violation of the law.

And this bill would also extend trademark infringement protections available under the Trademark Act of 1946 for unauthorized use of a registered trademark in connection with an unlawful sale or other violation involving an imitation coin.

Mr. Speaker, my constituents in North Carolina and Americans across the country deserve to have the peace of mind to know that they will receive what they believe they are purchasing.

Individuals who sell fake products have a real and significant impact on our economy. The manufacture and sale of counterfeit imitation currency cannot be permitted to continue.

I'm confident my bill will provide greater protection for our Nation's currency and for those who collect it.

And so I thank Mr. Burgess, and I thank all of my colleagues. I ask my colleagues to support this piece of legislation and vote ``aye.''

Again, I ask my colleagues to look at this and work with us, and let's get it passed and let's stop this black market that's emerging in our country.

I yield back the balance of my time.

Mr. President, as in legislative session, I ask unanimous consent that the Committee on Commerce, Science, and Transportation be discharged from further consideration of H.R. 2754 and the Senate proceed to its immediate consideration.

I ask unanimous consent that the bill be read a third time and passed and the motion to reconsider be considered made and laid upon the table.