[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2977 Introduced in House (IH)]
112th CONGRESS
1st Session
H. R. 2977
To improve the circulation of $1 coins, to remove barrier to the
circulation of such coins, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 20, 2011
Mr. Schweikert (for himself, Mr. Hensarling, and Mr. Luetkemeyer)
introduced the following bill; which was referred to the Committee on
Financial Services
_______________________________________________________________________
A BILL
To improve the circulation of $1 coins, to remove barrier to the
circulation of such coins, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Currency Optimization, Innovation,
and National Savings Act''.
SEC. 2. IMPROVING CIRCULATION AND REMOVING BARRIERS TO CIRCULATION OF
$1 COINS.
(a) Duties of the Board of Governors of the Federal Reserve
System.--
(1) Coin sequestration.--
(A) In general.--Within six months of the date of
enactment of this Act, the Board of Governors of the
Federal Reserve System shall sequester all $1 coins
bearing the design common to those $1 coins minted and
issued from 1979-1981 and again in 1999.
(B) Treatment of coins.--Coins sequestered pursuant
to subparagraph (A) shall not be returned to ordinary
circulation or otherwise released form storage
controlled by the Federal Reserve System or an agent of
the Federal Reserve System.
(C) Exception for certain uses.--Notwithstanding
subparagraph (B), coins sequestered pursuant to
subparagraph (A) may be released, at face value and in
bulk quantities--
(i) to dealers in collectible coins; and
(ii) to countries that have adopted the
United States dollar as their base unit of
exchange.
(D) Obsolete coins.--At the end of the 1-year
period beginning on the date of the enactment of this
Act, the Secretary of the Treasury shall declare all
coins described under subparagraph (A) to be obsolete,
and such coins--
(i) shall be treated in the same manner as
all other obsolete United States coins; and
(ii) to the extent such coins remain in
general circulation, shall remain legal tender.
(2) Quarterly report on $1 coins.--The Board of Governors
of the Federal Reserve System shall issue quarterly reports to
the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate on--
(A) the number of coins sequestered pursuant to
paragraph (1)(A);
(B) the number of coins described in paragraph
(1)(A) that remain in general circulation; and
(C) efforts that have been made to reduce the
number of coins described in subparagraphs (A) and (B)
to zero.
(3) Improvement of circulation.--The Board of Governors of
the Federal Reserve System shall--
(A) undertake efforts to improve the circulation
and remove barriers to the circulation of the $1 coin,
other than those coins described under paragraph
(1)(A);
(B) issue a quarterly report to the Committee on
Financial Services of the House of Representatives and
the Committee on Banking, Housing, and Urban Affairs of
the Senate on--
(i) what efforts have been made to improve
the circulation of $1 coins and what efforts
are being planned to improve the circulation of
$1 coins;
(ii) the success of such efforts, including
an analysis of such coins held in storage owned
or controlled by the Federal Reserve System and
the number such coins in circulation;
(iii) barriers to the circulation of such
coins, including the availability of such coins
in quantities unmixed with the $1 coins
described in paragraph (1)(A); and
(iv) the extent to which the Federal
Reserve System and any agents of the Federal
Reserve System are unable to meet end-user
requests for delivery of unmixed quantities of
such coins in whatever form such end user
requires, including rolls, disposable tubes, or
volume bags of such coins.
(4) Outreach and education.--The Board of Governors of the
Federal Reserve System shall continuously conduct outreach and
education programs aimed at helping each business using or
accepting cash to choose the best mix of $1 coins and banknotes
to facilitate transactions and reduce costs of transactions and
of ``cashing out'' at the end of a transaction period.
(5) Report on native american coins.--Not later than the
end of the 3-month period beginning on the date of the
enactment of this Act, and annually thereafter, the Board of
Governors of the Federal Reserve System shall issue a report to
the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate on the Board's efforts to improve
the circulation of, and remove barriers to the circulation of,
$1 coins bearing the so-called ``Native American'' designs,
including any efforts to institute an introductory period for
each new ``Native American'' design of the $1 coin during which
quantities are available unmixed with other designs.
(6) Use of $1 coins by foreign countries.--The Board of
Governors of the Federal Reserve System shall work with the
Departments of State and Treasury to ensure that countries that
have adopted the dollar as a base unit of exchange and which
place orders with the Federal Reserve System, or through any
United States financial institution, for supplies of $1
monetary units, are fully briefed before placing each such
order on the durability and longevity of $1 coins in high-
circulation economies when used for transactions of a low
dollar value.
(b) Publicity Requirement.--Section 5112(p)(2) of title 31, United
States Code, is amended by inserting after ``Mint'' the following:
``and the Board of Governors of the Federal Reserve System''.
(c) Report on Implementation.--Not later than the end of the 1-year
period beginning on the date of the enactment of this Act, and annually
thereafter, the Comptroller General of the United States and the
Inspector General of the Federal Reserve System and the Bureau of
Consumer Financial Protection shall each issue a report to the
Committee on Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the Senate on steps
being taken by the Board of Governors of the Federal Reserve System to
carry out this Act.
(d) Clarification With Respect to Seigniorage.--The ninth proviso
of section 5136 of title 31, United States Code, is amended, by
inserting after ``miscellaneous receipts'' the following: ``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) in any budget submitted under such section''.
SEC. 3. SAVING TAXPAYERS FUNDS BY TRANSITIONING TO THE USE OF $1 COINS.
(a) In General.--It is the policy of the United States that after
$1 coins achieve sufficient market penetration such that consumers and
retailers are comfortable using $1 coins and are able to obtain
adequate supplies of $1 coins, $1 coins should replace $1 Federal
Reserve notes as the only $1 monetary unit issued and circulated by the
Federal Reserve System.
(b) Deadline for Placing $1 Federal Reserve Notes Into
Circulation.--Federal Reserve banks may continue to place into
circulation $1 Federal Reserve notes until the earlier of--
(1) the date on which the number of $1 coins placed into
circulation after the date of the enactment of this Act exceeds
600,000,000 annually; and
(2) the date that is 4 years after the date of the
enactment of this Act.
(c) Transition Period.--After the date referred to in subsection
(b), a Federal Reserve bank may not order additional $1 Federal Reserve
notes but may, for a period of one year, continue to place into
circulation $1 Federal Reserve notes on hand or those deposited with
it, except for notes described in subparagraph (d).
(d) Removal of Unfit Currency.--After the date referred to in
subparagraph (b), a Federal Reserve bank shall continue to remove unfit
currency from circulation, and shall continue to destroy such currency.
(e) Exception.--Notwithstanding subsections (b) and (c), the Board
of Governors of the Federal Reserve System shall produce such Federal
Reserve notes of $1 denomination as the Board determines from time to
time are appropriate solely 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.
(f) No Effect on Legal Tender.--Notwithstanding any other
subsection of this section, $1 Federal Reserve notes are legal tender
in the United States for all debts, public and private, public charges,
taxes, and duties, regardless of the date of printing or issue.
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