109 HR 5818 IH: To modernize the legal tender of the United States, and
U.S. House of Representatives
2006-07-17
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; table of
contents
(a)This Act may be cited
as the Currency Overhaul for an Industrious Nation (COIN)
Act
.
(b)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.
2.Redesign and
issuance of commemorative circulating $2 Federal reserve notes
(a)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 yearA 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)
(1)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 representationsNo portrait of a living person may be
included in the design of any $2 Federal reserve note under this
subsection.
(d)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)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.
3.Cash transaction
rounding
(a)Rounding of cash
transaction values to nearest 5 cents requiredNotwithstanding
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)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)
(A)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)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)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 tenderAll 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 lawsAny tax imposed by any State
or municipal taxing authority shall not apply to gains or losses resulting from
rounding.
(e)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)
(1)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)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)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.
4.Clarification of
existing law regarding inclusion of seigniorage in budgetThe 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
.
5.Recognition of
market demand for $1 circulating coin
(a)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)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)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.
6.Study on
alternative metal compositions for circulating coins
(a)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)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)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.
7.Study of effects
of increasingly cashless economy on the budget and monetary policy
(a)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)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)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.
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 PrintingSection 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 MintSection 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 liabilitiesThe 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)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)
;
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 diesThe 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 notesThe 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)
(1)Existing rights,
duties, and obligations not affectedThe 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)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 regulationsAll 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 benefitsNotwithstanding 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.
9.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.
10.
(a)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)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.
11.Issuance of
redesigned quarter dollars honoring the District of Columbia and each of the
territoriesSection 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)
(A)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 inscriptionsNotwithstanding 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 designThe 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)
(A)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 processDesigns 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)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)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 representationsNo 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 itemsFor purposes of sections 5134 and 5136, all
coins minted under this subsection shall be considered to be numismatic
items.
(5)
(A)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)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 issuanceCoins 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)
(A)Application in
event of admission as a StateIf 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 independenceIf 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)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.
.