[Congressional Record (Bound Edition), Volume 153 (2007), Part 16]
[Extensions of Remarks]
[Pages 22964-22965]
[From the U.S. Government Publishing Office, www.gpo.gov]




    INTRODUCTION OF THE COINAGE MATERIALS MODERNIZATION ACT OF 2007

                                 ______
                                 

                         HON. LUIS V. GUTIERREZ

                              of illinois

                    in the house of representatives

                        Thursday, August 2, 2007

  Mr. GUTIERREZ. Madam Speaker, along with my distinguished colleague 
from Massachusetts, Mr. Frank, I am proud to introduce the Coinage 
Materials Modernization Act of 2007.
  This legislation, which is supported by the Treasury Department, 
would update the law governing the materials used to mint U.S. coins by 
authorizing the Treasury Secretary to change the composition of coins 
to less expensive materials.
  The immediate purpose of this legislation is to address the rising 
cost to taxpayers of minting pennies and nickels. Currently pennies are 
made mostly of zinc and have a copper-plated surface. Nickels are made 
up of an alloy of 75 percent copper and 25 percent nickel. Since March 
of 2003, world demand for core metals has driven up the price of copper 
and nickel by 300 percent and of zinc by 450 percent. At the current 
specifications for these coins, it costs the Government 1.7 cents to 
make a penny and 10 cents to make a nickel.
  Other coin denominations continue to be made at costs well below 
their face values, but metal cost is increasing for them as well. This 
legislation will allow Treasury to change the composition of all U.S. 
coins to less expensive alternatives and dramatically reduce the costs 
of producing these coins.
  The Treasury Department estimates that by changing the composition of 
pennies and nickels, we will save the Government over $100

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million a year; and by making similar changes to the half dollar, 
quarter and dime, the Government can save as much as $400 million 
annually.
  Under current law, the Treasury Secretary cannot change the base 
metals used to make our Nation's coinage without congressional action. 
The Secretary has the authority to vary the alloy of copper and zinc 
comprising the penny, but there is little room for further adjustment. 
This legislation would grant the Secretary the authority to change the 
base metals used to mint coins, potentially saving taxpayers hundreds 
of millions of dollars, without changing the visual features of our 
coinage.
  After this bill is enacted, the United States Mint, which is a bureau 
within the Treasury Department, will seek public and industry comment 
on possible alternative composition for the penny and the nickel. 
Following the comment period, there will be a competitive public 
bidding process for new coinage materials. Congress, particularly the 
Committee on Financial Services, chaired by my cosponsor, Mr. Frank, 
and the Subcommittee on Domestic and International Monetary Policy, 
Trade and Technology, which I chair, will exercise strong oversight 
over this process.
  I encourage my colleagues to join me in supporting this legislation, 
which has the potential to save the Federal Government hundreds of 
millions of dollars annually. The financial resources of the Federal 
Government are limited, and it is rare when we have the opportunity to 
make a simple legislative fix with the potential to save the taxpayers 
so much. We should take full advantage of this opportunity and pass 
this legislation in an expeditious manner.

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