[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>