[Federal Register Volume 64, Number 141 (Friday, July 23, 1999)]
[Rules and Regulations]
[Pages 39919-39920]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-18849]


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DEPARTMENT OF THE TREASURY

United States Mint

31 CFR Part 100

RIN 1525-ZA00


Exchange of Coin

AGENCY: United States Mint, Treasury.

ACTION: Final rule.

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SUMMARY: In furtherance of the U.S. Mint's efforts to improve the 
environment, reduce energy consumption and enhance workplace safety and 
efficiency, the Mint wishes to discontinue melting and instead employ 
mechanical means to destroy mutilated coins. These mechanical means 
cannot be used to process fused or mixed coins, which represent a very 
small percentage of the coins redeemed annually by the Mint. 
Accordingly, by this amendment the Mint will also discontinue accepting 
fused or mixed coins for redemption, and require that all bent or 
partial coins submitted for redemption be separated by denomination in 
order to be acceptable.

EFFECTIVE DATE: August 23, 1999.

FOR FURTHER INFORMATION CONTACT: (Legal) Gwen Mattleman, Attorney-
Advisor (202) 874-4043, or Kenneth Gubin, Chief Counsel (202) 874-5953; 
(Technical) Andrew Cosgarea, Associate Director, Head, Circulating 
Coinage Business Unit (202) 874-6100.

SUPPLEMENTARY INFORMATION:

Background

    Part 100, Subpart C of Treasury Regulations 31 CFR, promulgated 
under 31 U.S.C. 5120, provides for the exchange of bent, partial, fused 
and mixed coins. The Mint has identified and is actively pursuing 
initiatives to improve the environment, reduce energy consumption and 
enhance efficiency and workplace safety. Melting coins submitted for 
redemption by the Mint's current heat induction procedures is not 
energy efficient and adds to the Mint's annual electrical expenses. It 
is also a physically challenging process for the Mint's employees. For 
these reasons, in 64 FR 4063, January 27, 1999, the Mint published a 
proposed rule notifying the public of its intention to discontinue 
melting and begin using mechanical means (such as a hammer mill or 
rolling mill) to destroy mutilated coins. As the mechanical destruction 
process requires that coins be separated by alloy, these mechanical 
methods cannot be used to process fused coins or unsorted (mixed) coin 
lots. Mutilated coins delivered in these lots of mixed alloy categories 
often are in a condition which precludes machine sorting, and 
redemption of mixed coins can be labor-intensive and inefficient. Fused 
and mixed coins represent a very small component of the United States 
Mint's annual coin redemptions. Therefore, the Mint's proposed rule 
published in 64 FR 4063, January 27, 1999 also notified the public of 
the Mint's intention to amend Part 100 of 31 CFR to discontinue 
acceptance of fused and mixed coins for redemption and require that all 
bent or partial coins submitted for redemption be separated by 
denomination. Comments were solicited through the January 27, 1999 
publication of the proposed rule in the Federal Register (which 
included telephone numbers of legal and technical staff and a dedicated 
email address). No comments from the public were received. For the 
foregoing reasons, effective 30 days from the date of publication of 
this final rule, the Mint amends Part 100 of 31 CFR to discontinue 
acceptance of fused and mixed coins for redemption and to require that 
all bent or partial coins submitted for redemption be separated by 
denomination.

Special Analyses

    This regulation is not a significant regulatory action for purposes 
of Executive Order 12866. The Mint has paid out less than $8 million in 
total annual mutilated coin redemptions for each of 1996, 1997 and the 
seven-month period ending July 31, 1998. For each such period, fused 
and mixed coins as a group constitute less than 1% of total coins 
redeemed, and approximately 1% or less of the total lots redeemed. 
Fused and mixed coins are currently redeemed at metal rates lower than 
the rates paid for sorted coins. For these reasons, the United States 
Mint does not believe that the regulation will have an annual effect on 
the economy of $100 million or more or materially adversely affect any 
sector of the economy, productivity,

[[Page 39920]]

competition, jobs, the environment, public health, or State, local, or 
tribal governments or communities. The Mint does not anticipate that 
the rule will result in inconsistency, interfere with another agency's 
actions, materially alter the budgetary impact of entitlements, grants, 
user fees, or loan programs or the rights and obligations of recipients 
thereof, or raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
Executive Order 12866. It is hereby certified that this regulation will 
not have a significant economic impact on a significant number of small 
entities. Accordingly, a regulatory flexibility analysis is not 
required. Lots of fused and mixed coins recorded together as a group 
constituted approximately 1% or less of the total coin lots redeemed 
for each of calendar 1996, 1997 and the period ending July 31, 1998, 
amounting to 23, 19 and 13 lots, respectively, of fused and mixed 
coins. Although the Mint does not maintain records which consistently 
indicate the business or personal nature of the transactions conducted 
by individuals or entities tendering coins for redemption, the majority 
of these lots were submitted by individuals transacting with the Mint 
in their own name. Even if each such individual were a ``small entity'' 
within the meaning of 5 U.S.C. 604(a), the Mint does not believe that 
this quantity of lots indicates that a significant number of small 
entities will be significantly impacted if the Mint were to require 
sorting of coins previously accepted as mixed and discontinue accepting 
fused coins.

List of Subjects in 31 CFR Part 100

    Currency, Gold.

    For the reasons set forth in the preamble, the United States Mint 
amends 31 CFR Part 100 as follows:

PART 100--EXCHANGE OF PAPER CURRENCY AND COIN

Subpart C--Exchange Of Coin

    1. The authority citation for Part 100 is revised to read as 
follows:

    Authority: 31 U.S.C. 321.

    2. Revise Sec. 100.11(b) to read as follows:


Sec. 100.11  Exchange of bent and partial coins.

* * * * *
    (b) Redemption basis. Bent and partial coins shall be presented 
separately by denomination category in lots of at least one pound for 
each category. Bent and partial coins shall be redeemed on the basis of 
their weight and denomination category rates (which is the weight 
equivalent of face value). If not presented separately by denomination 
category, bent and partial coins will not be accepted for redemption. 
Denomination categories and rates are Cents, @ $1.4585 per pound; 
Nickels, 
@ $4.5359 per pound; Dimes, Quarters, Halves, and Eisenhower Dollars @ 
$20.00 per pound; and Anthony Dollars @ $56.00 per pound. Copper plated 
zinc cents shall be redeemed at the face value equivalent of copper one 
cent coins.
* * * * *
    3. Revise Sec. 100.12(b) to read as follows:


Sec. 100.12  Exchange of fused and mixed coins.

* * * * *
    (b) The United States Mint will not accept fused or mixed coins for 
redemption.
Philip N. Diehl,
Director.
[FR Doc. 99-18849 Filed 7-22-99; 8:45 am]
BILLING CODE 4810-37-P