[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5818 Introduced in House (IH)]








109th CONGRESS
  2d Session
                                H. R. 5818

   To modernize the legal tender of the United States, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 17, 2006

  Mr. Kolbe introduced the following bill; which was referred to the 
 Committee on Financial Services, and in addition to the Committee on 
the Budget, for a period to be subsequently determined by the Speaker, 
 in each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Currency Overhaul 
for an Industrious Nation (COIN) Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Redesign and issuance of commemorative circulating $2 Federal 
                            reserve notes.
Sec. 3. Cash transaction rounding.
Sec. 4. Clarification of existing law regarding inclusion of 
                            seigniorage in budget.
Sec. 5. Recognition of market demand for $1 circulating coin.
Sec. 6. Study on alternative metal compositions for circulating coins.
Sec. 7. Study of effects of increasingly cashless economy on the budget 
                            and monetary policy.
Sec. 8. Transfer of the United States Mint and Bureau of Engraving and 
                            Printing to the Federal Reserve Board.
Sec. 9. Paper for currency.
Sec. 10. Obsolete coins.
Sec. 11. Issuance of redesigned quarter dollars honoring the District 
                            of Columbia and each of the territories.

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, 
2007, the reverse of $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 may determined to be 
appropriate in accordance with the 8th undesignated paragraph of 
section 16 of the Federal Reserve Act, except that, in making any 
determination with regard to design, the Secretary of the Treasury 
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 cash 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 the resulting sum ends with 
                1 cent, 2 cents, 6 cents, or 7 cents as the final 
                digit, the amount of cents in the 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 the resulting sum ends with 3 
                cents, 4 cents, 8 cents, or 9 cents as the final digit, 
                the amount of cents in the 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 1-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. 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. 5. RECOGNITION OF MARKET DEMAND FOR $1 CIRCULATING COIN.

    (a) Transition Period.--Federal reserve banks may continue to place 
into circulation $1 Federal reserve notes until the date as of which 
the number of $1 coins placed in circulation in each of 2 preceding 
calendar years equals or exceeds 1,000,000,000.
    (b) Post-Transition Period.--After the date referred to in 
subsection (a), a Federal reserve bank may not order or place into 
circulation any $1 Federal reserve note.
    (c) Exception.--Notwithstanding subsection (b), the Board of 
Governors of the Federal Reserve System shall produce only such Federal 
reserve notes of $1 denomination as the Board determines from time to 
time are appropriate to meet the needs of collectors of that 
denomination. Such notes shall be issued by 1 or more Federal reserve 
banks in accordance with section 16 of the Federal Reserve Act and sold 
by the Board, in whole or in part, under procedures prescribed by the 
Board.

SEC. 6. STUDY ON ALTERNATIVE METAL COMPOSITIONS FOR CIRCULATING COINS.

    (a) Study Required.--The Comptroller General shall conduct a study 
on the feasibility, practicality, and cost-effectiveness of using 
alternative metal compositions for circulating United States coins.
    (b) Issues.--In conducting the study under subsection (a), the 
Comptroller General shall include--
            (1) a study of the metal compositions of coins produced and 
        issued by other countries and economic unions and the minting 
        practices of such countries and unions; and
            (2) an analysis of the costs to consumers and business that 
        may result from any changes in the metal composition of United 
        States coin, including transition costs, and the methods 
        available for timing any such transition to minimize such 
        costs.
    (c) Report.--Before the end of the 270-day period beginning on the 
date of the enactment of this Act, the Comptroller General shall submit 
a report to the Congress on the findings and conclusions with respect 
to the study conducted under subsection (a), together with such 
recommendations for legislative or administration action as the 
Comptroller General may determine to be appropriate.

SEC. 7. STUDY OF EFFECTS OF INCREASINGLY CASHLESS ECONOMY ON THE BUDGET 
              AND MONETARY POLICY.

    (a) Study Required.--The Comptroller General shall conduct a study 
of the effects of a drastic and relatively sudden decrease in the 
public use of circulating coins and currency on the budget of the 
Federal Government and the conduct of monetary policy.
    (b) Consultation.--In conducting the study under subsection (a), 
the Comptroller General shall consult with the Director of the Office 
of Management and Budget and the Board of Governors of the Federal 
Reserve System to the greatest extent possible.
    (c) Report Required.--Before the end of the 1-year period beginning 
on the date of the enactment of this Act, the Comptroller General shall 
submit a report to the Committee on Financial Services and the 
Committee on the Budget of the House of Representatives and the 
Committee on Banking, Housing, and Urban Affairs and the Committee on 
the Budget of the Senate on the findings and conclusion of the 
Comptroller General with respect to the study conducted pursuant to 
subsection (a), together with any comments the Director of the Office 
of Management and Budget or the Board of Governors of the Federal 
Reserve System may choose to include, and any recommendations for 
legislative or administrative action the Comptroller General, the 
Director, or the Board may determine to be appropriate.

SEC. 8. TRANSFER OF THE UNITED STATES MINT AND BUREAU OF ENGRAVING AND 
              PRINTING TO THE FEDERAL RESERVE BOARD.

    (a) Transfer of Bureau of Engraving and Printing.--Section 303 of 
title 31, United States Code--
            (1) is transferred from title 31, United States Code, and 
        inserted in the Federal Reserve Act after section 16 of such 
        Act;
            (2) is redesignated as section 16A of the Federal Reserve 
        Act; and
            (3) is amended--
                    (A) in subsection (a), by striking ``in the 
                Department of the Treasury'' and inserting ``in the 
                Federal Reserve System''; and
                    (B) in subsection (b)--
                            (i) by striking ``Secretary of the 
                        Treasury'' and inserting ``Board of Governors 
                        of the Federal Reserve System''; and
                            (ii) by striking ``Secretary'' where such 
                        term appears in paragraphs (1) and (2) of such 
                        subsection and inserting ``Board of Governors 
                        of the Federal Reserve System''.
    (b) Transfer of United States Mint.--Section 304 of title 31, 
United States Code--
            (1) is transferred from title 31, United States Code, and 
        inserted in the Federal Reserve Act after section 16A of such 
        Act (as designated by subsection (a)(2) of this section);
            (2) is redesignated as section 16B of the Federal Reserve 
        Act; and
            (3) is amended--
                    (A) in subsection (a), by striking ``in the 
                Department of the Treasury'' and inserting ``in the 
                Federal Reserve System''; and
                    (B) in subsection (b)(2), by striking ``Secretary 
                of the Treasury'' and inserting ``Board of Governors of 
                the Federal Reserve System''.
    (c) Transfer of Assets and Liabilities.--The Director of the Office 
of Management and Budget shall--
            (1) oversee the transfer of the United States Mint and the 
        Bureau of Engraving and Printing from the Department of the 
        Treasury to the Federal Reserve System (as provided by the 
        amendments made by subsection (a) and (b));
            (2) arrange for the accounting for, and transfer of, all 
        assets and liabilities and all operational and management 
        responsibilities, including obligations with respect to 
        officers and employees, from the Secretary to the Board in 
        connection with the transfer described in paragraph (1); and
            (3) before the end of the 6-month period beginning on the 
        date of the enactment of this Act and after consulting with the 
        Secretary of the Treasury and the Board of Governors of the 
        Federal Reserve System, provide a report to the Congress on all 
        further technical and conforming amendments to Federal law that 
        are appropriate to fully effectuate such transfer in accordance 
        with subsection (d).
    (d) Distributive Principles.--The transfer of assets and 
liabilities and operational and management responsibilities and the 
preparation of further technical and conforming amendments under 
subsection (c) shall be based on the following principles and the 
amendments made by subsection (e):
            (1) The Secretary of the Treasury shall have the 
        responsibility for the design, including inscriptions, of all 
        United States circulating coins, numismatic items, and national 
        medals authorized by an Act of Congress.
            (2) The Board of Governors of the Federal Reserve System 
        shall have the responsibility for the administration of the 
        bureau of the United States Mint, each United States mint, and 
        the Bureau of Engraving and Printing and all operations and 
        productions of such entities.
            (3) The Bureau of Engraving and Printing shall continue to 
        produce United States bonds, bonds of United States 
        territories, and other security documents and checks for the 
        Secretary of the Treasury and any other Federal agency or 
        establishment as may be agreed upon by the Secretary and the 
        Board of Governors of the Federal Reserve System.
            (4) The United States Mint and the United States mints 
        shall continue to produce all United States circulating coins, 
        numismatic items, and national medals authorized by an Act of 
        Congress and the devices, models, hubs, and dies for such 
        coins, numismatic items, and medals.
    (e) Technical and Conforming Amendments.--
            (1) Section 5111 of title 31, United States Code, is 
        amended--
                    (A) in subsection (a)--
                            (i) by striking ``Secretary of the 
                        Treasury'' and inserting ``Board of Governors 
                        of the Federal Reserve System (hereafter in 
                        this section referred to as the `Board')'';
                            (ii) by striking ``Secretary'' where such 
                        term appears in paragraph (1) and inserting 
                        ``Board''; and
                            (iii) by inserting ``which have been 
                        authorized by an Act of Congress'' after--
                                    (I) ``national and other medals'' 
                                where such term appears in paragraph 
                                (2); and
                                    (II) ``numismatic items'' where 
                                such term appears in paragraph (3);
                    (B) by striking subsection (b) and inserting the 
                following:
    ``(b) [Repealed].--''; and
                    (C) in subsection (c), by striking ``Secretary'' 
                each place such term appears and inserting ``Board''.
            (2) Section 5112 of title 31, United States Code, is 
        amended--
                    (A) in that portion of subsection (a) that precedes 
                paragraph (1) of such subsection by striking ``The 
                Secretary of the Treasury may mint and issue only the 
                following coins:'' and inserting ``Except as provided 
                by any other Federal law, only the following coins may 
                be minted and issued as United States coins:'';
                    (B) in subsections (b), (c), (e), (f), and (i) 
                (other than paragraph (4)(A) of subsection (i)), by 
                striking ``Secretary'' each place such term appears and 
                inserting ``Board'';
                    (C) in subsection (d)(2)--
                            (i) by striking ``devices, models, hubs, 
                        and dies for coins, emblems, devices, 
                        inscriptions, and designs'' where such term 
                        appears in the 1st sentence and inserting 
                        ``inscriptions and designs for coins'';
                            (ii) by striking ``or models of emblems'' 
                        and ``or devices'' each place such terms appear 
                        in the 2nd sentence; and
                            (iii) by striking ``or die'' where such 
                        term appears in the 3rd sentence; and
                    (D) in subsection (d), by inserting after paragraph 
                (2) the following new paragraph:
            ``(3) Preparation of devices, models, hubs, and dies.--The 
        Board of Governors of the Federal Reserve System shall prepare 
        the devices, models, hubs, and dies for coins, emblems, and 
        devices authorized under this chapter on the basis of designs 
        selected by the Secretary in accordance with paragraph (2). The 
        Board may procure services under section 3109 of title 5 in 
        carrying out this paragraph.''.
            (3) Section 5114 of title 31, United States Code, is 
        amended--
                    (A) in subsection (a)(1)--
                            (i) by striking ``Secretary of the 
                        Treasury'' and inserting ``Board of Governors 
                        of the Federal Reserve System (hereafter in 
                        this section referred to as the `Board')'';
                            (ii) by striking ``Department of the 
                        Treasury'' and inserting ``Federal Reserve 
                        System''; and
                            (iii) by striking ``outside the 
                        Department'' and inserting ``outside the 
                        Federal Reserve System''; and
                    (B) by striking ``Secretary of the Treasury'' and 
                ``Secretary'' each place such terms appear in such 
                section, other than subsection (b) or in connection 
                with the term amended by subparagraph (A)(i) of this 
                paragraph, and inserting ``Board''.
            (4) Section 5116 of title 31, United States Code, is 
        amended--
                    (A) in subsection (a)(1), by striking ``Secretary 
                of the Treasury'' and inserting ``Board of Governors of 
                the Federal Reserve System (hereafter in this section 
                referred to as the `Board')''; and
                    (B) by striking ``Secretary'' each place such term 
                appears (other than in connection with the term amended 
                by subparagraph (A)) and inserting ``Board''.
            (5) Section 5120 of title 31, United States Code, is 
        amended--
                    (A) in subsection (a)(1), by striking ``Secretary 
                of the Treasury'' and inserting ``Board of Governors of 
                the Federal Reserve System (hereafter in this section 
                referred to as the `Board')'';
                    (B) by striking ``Secretary'' each place such term 
                appears (other than in connection with the term amended 
                by subparagraph (A)) and inserting ``Board''; and
                    (C) by striking paragraph (2).
            (6) Section 5121 of title 31, United States Code, is 
        amended--
                    (A) in subsection (a), by striking ``Secretary of 
                the Treasury'' and inserting ``Board of Governors of 
                the Federal Reserve System (hereafter in this section 
                referred to as the `Board')''; and
                    (B) by striking ``Secretary'' each place such term 
                appears (other than in connection with the term amended 
                by subparagraph (A)) and inserting ``Board''.
            (7) Section 5122 of title 31, United States Code, is 
        amended--
                    (A) in subsection (a), by striking ``Secretary of 
                the Treasury'' and inserting ``Board of Governors of 
                the Federal Reserve System (hereafter in this section 
                referred to as the `Board')''; and
                    (B) by striking ``Secretary'' each place such term 
                appears (other than in connection with the term amended 
                by subparagraph (A)) and inserting ``Board''.
            (8) Section 5131 of title 31, United States Code, is 
        amended--
                    (A) in subsection (a), by striking ``The United 
                States Mint has--'' and inserting ``The Board of 
                Governors of the Federal Reserve System shall maintain 
                the following facilities:'';
                    (B) in subsection (b), by striking ``Secretary of 
                the Treasury'' and ``Secretary'' each place such terms 
                appear in such subsection and inserting ``Board''.
            (9) Section 5132 of title 31, United States Code, is 
        amended--
                    (A) in subsection (a)(1)--
                            (i) by striking the 1st 2 sentences;
                            (ii) by striking ``Secretary of the 
                        Treasury'' the first place such term appear 
                        (other than in any sentence struck under clause 
                        (i)) and inserting ``Board of Governors of the 
                        Federal Reserve System (hereafter in this 
                        section referred to as the `Board')''; and
                            (iii) by striking ``Secretary'' each place 
                        such term appears (other than the place amended 
                        by subparagraph (B)) and inserting ``Board''.
            (10) Section 5134(f) of title 31, United States Code, is 
        amended by striking ``Secretary'' each place such term appears 
        in such subsection and inserting ``Board''.
            (11) Section 5136 of title 31, United States Code, is 
        amended--
                    (A) by striking ``Secretary of the Treasury'' the 
                first place such term appears in such section and 
                inserting ``Board of Governors of the Federal Reserve 
                System (hereafter in this section referred to as the 
                `Board')''; and
                    (B) by striking ``Secretary of the Treasury'' and 
                ``Secretary'' each place such terms appear in such 
                section (other than the place amended by subparagraph 
                (A)) and inserting ``Board''.
            (12) Section 5141 of title 31, United States Code, is 
        amended--
                    (A) in subsection (a), by striking ``Secretary of 
                the Treasury'' and inserting ``Board of Governors of 
                the Federal Reserve System (hereafter in this section 
                referred to as the `Board')''; and
                    (B) in subsection (b), by striking ``Secretary'' 
                and inserting ``Board''.
            (13) Section 5142 of title 31, United States Code, is 
        amended--
                    (A) in subsection (a), by striking ``Department of 
                the Treasury'' and inserting ``Secretary of the 
                Treasury''; and
                    (B) by striking ``Secretary'' each place such term 
                appears and inserting ``Board''.
            (14) Section 5143 of title 31, United States Code, is 
        amended--
                    (A) by striking ``Secretary of the Treasury'' and 
                inserting ``Board of Governors of the Federal Reserve 
                System (hereafter in this section referred to as the 
                `Board')''; and
                    (B) by striking ``Secretary'' each place such term 
                appears in such section (other than the place amended 
                by subparagraph (A) and in connection with a reference 
                to the Secretary of State) and inserting ``Board''.
            (15) The 8th undesigned paragraph of section 16 of the 
        Federal Reserve Act (12 U.S.C. 418) is amended by striking 
        ``Secretary of the Treasury'' each place such term appears and 
        inserting ``Board''.
            (16) The 9th undesigned paragraph of section 16 of the 
        Federal Reserve Act (12 U.S.C. 419) is amended to read as 
        follows:
            ``(9) Custody of unissued notes.--The Board shall retain 
        custody of notes prepared under the preceding paragraph for 
        delivery in accordance with this Act.''.
            (17) The 10th undesignated paragraph of section 16 of the 
        Federal Reserve Act (12 U.S.C. 420) is amended by striking 
        ``Secretary of the Treasury'' and inserting ``Board''.
    (f) Savings Provisions.--
            (1) Existing rights, duties, and obligations not 
        affected.--The enactment of this section shall not affect the 
        validity of any right, duty, or obligation of the United 
        States, the bureau of the United States Mint, the Bureau of 
        Engraving and Printing, any officer or employee of such Mint or 
        Bureau, or any other person.
            (2) Continuation of suits.--No action or other proceeding 
        commenced by or against the Secretary of the Treasury with 
        respect to any function of the Secretary which was transferred 
        to the Board of Governors of the Federal Reserve System under 
        this section shall abate by reason of the enactment of this 
        Act, except that the Board shall be substituted for the 
        Secretary as a party to any such action or proceeding.
            (3) Continuation of orders, resolutions, determinations, 
        and regulations.--All orders, resolutions, determinations, and 
        regulations, which have been issued, made, prescribed, or 
        allowed to become effective by the Secretary of the Treasury 
        under section 303 or 304 of title 31, United States Code, or 
        subchapter II, III, or IV of chapter 51 of such title which 
        relate to matters, actions, functions, or personnel transferred 
        to the Board of Governors of the Federal Reserve System under 
        this section shall continue in effect according to the terms of 
        such orders, resolutions, determinations, and regulations and 
        shall be enforceable by or against the Board of Governors of 
        the Federal Reserve System, until modified, terminated, set 
        aside, or superseded in accordance with applicable law.
            (4) Employee rights and benefits.--Notwithstanding 
        paragraph (1), the Board of Governors of the Federal Reserve 
        System may transfer the officers and employees referred to in 
        such paragraph to the pay and benefit plans of the Board, to 
        the extent that no interest of any such officer or employee is 
        adversely affected by any such transfer.

SEC. 9. PAPER FOR CURRENCY.

    After the date of the enactment of this Act, no contract may be 
entered into for the acquisition of paper for the production of Federal 
reserve notes unless the contract specifies that all the paper 
deliverable under the contract must be produced entirely within the 
United States.

SEC. 10. OBSOLETE COINS.

    (a) In General.--At least 60 days before the date of the transfer 
of the Bureau of the Mint to the Board of Governors of the Federal 
Reserve System, under section 6(c) is finalized, and after consultation 
with the Board of Governors of the Federal Reserve System and the 
submission of notice to the Congress, the Secretary of the Treasury 
shall declare to be obsolete any circulating $1 coin that bears the 
design of the $1 coins being issued immediately before the issuance of 
coins with the design referred to in section 5112(n)(7) of title 31, 
United States Code.
    (b) Rule of Construction.--Any coins described in subsection (a) 
that are declared to be obsolete--
            (1) shall be treated in the same manner as all other 
        obsolete United States coins, and
            (2) to the extent such coins remain in general circulation, 
        shall remain legal tender.

SEC. 11. ISSUANCE OF REDESIGNED QUARTER DOLLARS HONORING THE DISTRICT 
              OF COLUMBIA AND EACH OF THE TERRITORIES.

    Section 5112 of title 31, United States Code, is amended by 
inserting after subsection (m) the following new subsection:
    ``(n) Redesign and Issuance of Circulating Quarter Dollar Honoring 
the District of Columbia and Each of the Territories.--
            ``(1) Redesign in 2009.--
                    ``(A) In general.--Notwithstanding the fourth 
                sentence of subsection (d)(1) and subsection (d)(2) and 
                subject to paragraph (6)(B), quarter dollar coins 
                issued during 2009, shall have designs on the reverse 
                side selected in accordance with this subsection which 
                are emblematic of the District of Columbia and the 
                territories.
                    ``(B) Flexibility with regard to placement of 
                inscriptions.--Notwithstanding subsection (d)(1), the 
                Secretary may select a design for quarter dollars 
                issued during 2009 in which--
                            ``(i) the inscription described in the 
                        second sentence of subsection (d)(1) appears on 
                        the reverse side of any such quarter dollars; 
                        and
                            ``(ii) any inscription described in the 
                        third sentence of subsection (d)(1) or the 
                        designation of the value of the coin appears on 
                        the obverse side of any such quarter dollars.
            ``(2) Single district or territory design.--The design on 
        the reverse side of each quarter dollar issued during 2009 
        shall be emblematic of one of the following: The District of 
        Columbia, the Commonwealth of Puerto Rico, Guam, American 
        Samoa, the United States Virgin Islands, and the Commonwealth 
        of the Northern Mariana Islands.
            ``(3) Selection of design.--
                    ``(A) In general.--Each of the 6 designs required 
                under this subsection for quarter dollars shall be--
                            ``(i) selected by the Secretary after 
                        consultation with--
                                    ``(I) the chief executive of the 
                                District of Columbia or the territory 
                                being honored, or such other officials 
                                or group as the chief executive officer 
                                of the District of Columbia or the 
                                territory may designate for such 
                                purpose; and
                                    ``(II) the Commission of Fine Arts; 
                                and
                            ``(ii) reviewed by the Citizens Coinage 
                        Advisory Committee.
                    ``(B) Selection and approval process.--Designs for 
                quarter dollars may be submitted in accordance with the 
                design selection and approval process developed by the 
                Secretary in the sole discretion of the Secretary.
                    ``(C) Participation.--The Secretary may include 
                participation by District or territorial officials, 
                artists from the District of Columbia or the territory, 
                engravers of the United States Mint, and members of the 
                general public.
                    ``(D) Standards.--Because it is important that the 
                Nation's coinage and currency bear dignified designs of 
                which the citizens of the United States can be proud, 
                the Secretary shall not select any frivolous or 
                inappropriate design for any quarter dollar minted 
                under this subsection.
                    ``(E) Prohibition on certain representations.--No 
                head and shoulders portrait or bust of any person, 
                living or dead, and no portrait of a living person may 
                be included in the design of any quarter dollar under 
                this subsection.
            ``(4) Treatment as numismatic items.--For purposes of 
        sections 5134 and 5136, all coins minted under this subsection 
        shall be considered to be numismatic items.
            ``(5) Issuance.--
                    ``(A) Quality of coins.--The Secretary may mint and 
                issue such number of quarter dollars of each design 
                selected under paragraph (4) in uncirculated and proof 
                qualities as the Secretary determines to be 
                appropriate.
                    ``(B) Silver coins.--Notwithstanding subsection 
                (b), the Secretary may mint and issue such number of 
                quarter dollars of each design selected under paragraph 
                (4) as the Secretary determines to be appropriate, with 
                a content of 90 percent silver and 10 percent copper.
                    ``(C) Timing and order of issuance.--Coins minted 
                under this subsection honoring the District of Columbia 
                and each of the territories shall be issued in equal 
                sequential intervals during 2009 in the following 
                order: the District of Columbia, the Commonwealth of 
                Puerto Rico, Guam, American Samoa, the United States 
                Virgin Islands, and the Commonwealth of the Northern 
                Mariana Islands.
            ``(6) Other provisions.--
                    ``(A) Application in event of admission as a 
                state.--If the District of Columbia or any territory 
                becomes a State before the end of the 10-year period 
                referred to in subsection (l)(1), subsection (l)(7) 
                shall apply, and this subsection shall not apply, with 
                respect to such State.
                    ``(B) Application in event of independence.--If any 
                territory becomes independent or otherwise ceases to be 
                a territory or possession of the United States before 
                quarter dollars bearing designs which are emblematic of 
                such territory are minted pursuant to this subsection, 
                this subsection shall cease to apply with respect to 
                such territory.
            ``(7) Territory defined.--For purposes of this subsection, 
        the term `territory' means the Commonwealth of Puerto Rico, 
        Guam, American Samoa, the United States Virgin Islands, and the 
        Commonwealth of the Northern Mariana Islands.''.
                                 <all>