I 112th CONGRESS 1st Session H. R. 2778 IN THE HOUSE OF REPRESENTATIVES August 1, 2011 Mr. Smith of Washington introduced the following bill; which was referred to the Committee on Financial Services A BILL To prevent the overproduction of $1 presidential coins by the United States Mint in order to efficiently meet collector demand while reducing the surplus of already produced $1 coins in Federal Reserve System vaults, and for other purposes.

1.

Short title

This Act may be cited as the The Dollars and Sense Act of 2011.

2.

Findings

The Congress finds the following: (1)The backlog of more than 1.2 billion coins in Federal Reserve System vaults is highly concerning. (2)Overinflated demand for coin collecting purposes and lack of transactional demand by the general public has led to backlog of these coins. (3)Continued production of these coins will maintain seigniorage and help pay down our national deficit.

3.

Removal of unmixed supplies requirement during introductory period

Section 5112(p)(3)(D) of title 31, United States Code, is amended by striking ensuring that— and all that follows through (ii) circulating coins and inserting ensuring that circulating coins.

4.

Reduction in the number of Presidents honored in a year from 4 to 2

Section 5112(n)(4) of title 31, United States Code, is amended— (1)in the heading, by striking 4 and inserting 2; (2)in subparagraph (A), by striking 4 Presidents and inserting 2 Presidents; and (3)in the heading of subparagraph (B), by striking 4 and inserting 2.

5.

Postponement of Native American $1 coin issuance

Section 5112(r) of chapter 51 of title 31, United States Code, is amended— (1)in paragraph (1)(A)— (A)by striking beginning January 1, 2008 and inserting beginning on the termination of the issuance of coins under subsection (n); and (B)by striking in addition to the coins to be issued pursuant to subsection (n),; and (2)by striking paragraph (5).

6.

Limitation on minting of Presidential $1 coins

Section 5112(n)(4)(B) of chapter 51 of title 31, United States Code, is amended— (1)by inserting before the period the following: , except that the aggregate number of all coins for circulation issued under this subsection for any such year shall not exceed the number of $1 coins sold only as numismatic items during the previous calendar year; and (2)by adding at the end the following: If the Secretary determines that the demand for a particular design during a year will exceed the amount of coins able to be produced under the limitation in the previous sentence, the Secretary may waive such limitation with respect to such design..

7.

Reform to the Direct Ship Program

The Circulating $1 Coin Direct Ship Program of the United States Mint shall only be available to persons who are purchasing $1 coins for coin collection purposes.

8.

Technical Corrections

Section 5112(p)(3) of chapter 51 of title 31, United States Code, is amended— (1)in subparagraph (D), by adding and at the end; (2)in subparagraph (E), by striking ; and and inserting a period; and (3)by striking subparagraph (F).

9.

Sense of Congress

It is the sense of Congress— (1)that the Board of Governors of the Federal Reserve System should do everything in its power to address the backlog of $1 coins in its vaults by making them as accessible as possible to the public for purposes of circulation; and (2)the United States Mint should continue the production of Sacagawea coins for circulation purposes upon completion of the Presidential $1 Coin Program.