[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2528 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 2528
To modernize the legal tender of the United States, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 17, 2001
Mr. Kolbe introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To modernize the legal tender of the United States, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Legal Tender Modernization Act''.
SEC. 2. REDESIGN AND ISSUANCE OF COMMEMORATIVE CIRCULATING $2 FEDERAL
RESERVE NOTES.
(a) In General.--Notwithstanding the authority of the Secretary of
the Treasury under the 8th undesignated paragraph of section 16 of the
Federal Reserve Act, during the 5-year period beginning January 1,
2003, $2 Federal reserve notes issued or otherwise placed into
circulation by any Federal reserve bank shall have such designs and be
in such form and tenor as the Secretary may select in accordance with
this section.
(b) Issuance of New Design Each Year.--A new design shall be
selected for $2 Federal reserve notes issued or otherwise placed into
circulation by any Federal reserve bank during each year of the 5-year
period referred to in subsection (a).
(c) Selection of Design.--
(1) In general.--Each of the 5 designs required under this
section for $2 Federal reserve notes shall--
(A) be emblematic of the history of the United
States; and
(B) be selected by the Secretary of the Treasury,
after consultation with the Commission of Fine Arts.
(2) Prohibition on certain representations.--No portrait of
a living person may be included in the design of any $2 Federal
reserve note under this subsection.
(d) Production.--Except as provided in subsection (a), the 8th
undesignated paragraph of section 16 of the Federal Reserve Act shall
apply to all $2 Federal reserve notes to which this section applies.
(e) Return to Other Design.--After the end of the 5-year period
referred to in subsection (a), the $2 Federal reserve note shall bear
such design, and be in such form and tenor, as the Secretary of the
Treasury may determine to be appropriate in accordance with the 8th
undesignated paragraph of section 16 of the Federal Reserve Act, except
that, in making any such determination, the Secretary shall take into
account the 5 designs selected for such 5-year period and shall give
such designs priority in making the final determination.
SEC. 3. CASH TRANSACTION ROUNDING.
(a) Rounding of Cash Transaction Values to Nearest 5 Cents
Required.--Notwithstanding any other provision of law, any person
selling goods or services shall determine the total transaction value
of such goods or services in the following manner:
(1) Total transaction values.--The transaction values of
goods and services shall be totaled, any discount or deduction
therefor made, and sales tax or other tax imposed, if any,
added to that total in accordance with the law of the State in
which such goods or services are sold.
(2) Rounding.--
(A) Rounding down.--If 1 cent, 2 cents, 6 cents, or
7 cents shall be contained in the resulting sum, that
sum shall be rounded down to the nearest amount
divisible by 5 for those individuals seeking to make
payment with legal tender.
(B) Rounding up.--If 3 cents, 4 cents, 8 cents, or
9 cents shall be contained in the resulting sum, that
sum shall be rounded up to the nearest amount divisible
by 5 for any person seeking to make payment with legal
tender.
(b) Exception.--The provisions of subsection (a)(2) shall not apply
to--
(1) transactions the total amount of which is 2 cents or
less, or
(2) transactions for which payment is made by any demand or
negotiable instrument, electronic fund transfer, money order,
credit card, or other like instrument.
(c) No Effect on Legal Tender.--All coins and currencies of the
United States, regardless of when coined, printed, or issued, shall
continue to be legal tender for all debts, public and private, public
charges, taxes, duties, and dues, in accordance with law.
(d) Coordination With Certain State or Local Tax Laws.--Any tax
imposed by any State or municipal taxing authority shall not apply to
gains or losses resulting from rounding.
(e) Numismatic Items.--The Secretary of the Treasury may produce so
many one-cent pieces as the Secretary determines are sufficient to
include in uncirculated sets, proof sets, and other collector sets as,
from time to time, the Secretary shall determine.
(f) Effective Date.--
(1) In general.--Except as provided in paragraph (2), this
section shall take effect at the end of the 180-day period
beginning on the date of the enactment of this Act.
(2) Delayed effective date.--If the end of the 180-day
period referred to in paragraph (1) occurs during the 3-month
period beginning on November 1 of any year, this section shall
take effect on February 1 of the year immediately following
such year.
(g) Rule of Construction.--No provision of this section shall be
construed as evidence of any intention to eliminate the pricing of
goods or services to the nearest cent or mill or to alter the amount of
sales tax collected or paid to any State or municipal taxing authority.
SEC. 4. PRODUCTION OF DOCUMENTS FOR FOREIGN GOVERNMENTS.
(a) In General.--Section 5114(a) of title 31, United States Code
(relating to engraving and printing currency and security documents) is
amended--
(1) by striking ``(a) The Secretary of the Treasury'' and
inserting:
``(a) Authority To Engrave and Print.--
``(1) In general.--The Secretary of the Treasury''; and
(2) by adding at the end the following new paragraph:
``(2) Engraving and printing for foreign governments.--The
Secretary of the Treasury may, if the Secretary determines that
it will not interfere with engraving and printing needs of the
United States--
``(A) produce currency, postage stamps, and other
security documents for foreign governments, subject to
a determination by the Secretary of State that such
production would be consistent with the foreign policy
of the United States; and
``(B) produce security documents for States and
their political subdivisions.''.
(b) Payment for Services.--Section 5143 of title 31, United States
Code (relating to payment for services of the Bureau of Engraving and
Printing) is amended--
(1) in the 1st sentence, by inserting ``, any foreign
government, any State, or any political subdivision of any
State'' after ``agency''; and
(2) in the last sentence, by inserting ``, foreign
government, State, or political subdivision of a State'' after
``agency''.
SEC. 5. CLARIFICATION OF EXISTING LAW REGARDING INCLUSION OF
SEIGNIORAGE IN BUDGET.
The 9th proviso of section 522 of Public Law 104-52 (31 U.S.C.
5136) is amended by inserting ``and such amount shall be included as an
estimated receipt of the Government and a receipt of the Government
under paragraphs (6) and (7), respectively, of section 1105(a) of title
31, United States Code, in any budget submitted under such section''
before the colon after ``miscellaneous receipts''.
SEC. 6. REDESIGN OF $1 FEDERAL RESERVE NOTE PROHIBITED.
Notwithstanding the authority of the Secretary of the Treasury
under the 8th undesignated paragraph of section 16 of the Federal
Reserve Act, the Secretary may not select or approve any new design
for, or implement any change in the design of, $1 Federal reserve notes
after the date of the enactment of this Act.
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