[Federal Register Volume 79, Number 136 (Wednesday, July 16, 2014)]
[Proposed Rules]
[Pages 41468-41470]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-16035]


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DEPARTMENT OF THE TREASURY

United States Mint

31 CFR Part 100


Redemption Rates and Procedures

AGENCY: United States Mint, Treasury.

ACTION: Notice of proposed rulemaking with request for comment.

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SUMMARY: The United States Mint proposes to amend Treasury regulations 
relating to the exchange of uncurrent, bent, partial, fused, and mixed 
coins. The proposed amendments aim to update redemption rates and 
procedures, as well as to resolve an apparent contradiction in the 
current regulation.

DATES: Comments on the proposed rule must be received by September 15, 
2014.

ADDRESSES: The United States Mint invites comments on all aspects of 
this proposed rule. In accordance with the eRulemaking Initiative, the 
Department of the Treasury publishes rulemaking information on 
www.regulations.gov. Regulations.gov offers the public the ability to 
comment on, search, and view publicly available rulemaking materials, 
including comments received on rules.
    Comments on this rule must be submitted using only the following 
methods:
     Federal eRulemaking Portal: www.regulations.gov. Follow 
the instructions on the Web site for submitting comments.
     Mail: United States Mint; Office of Chief Counsel; 801 9th 
Street NW.; Washington, DC 20220.
     Hand Delivery/Courier: Same as mail address.

FOR FURTHER INFORMATION CONTACT: Daniel P. Shaver, Chief Counsel, 
Office of Chief Counsel, United States Mint, at

[[Page 41469]]

(202) 354-7600 or [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    The Treasury Regulations appearing at 31 CFR part 100, subpart C, 
are promulgated under 31 U.S.C. 5120, and provide for the exchange of 
uncurrent, bent, partial, fused, and mixed coins. The last amendment to 
31 CFR part 100, was on August 23, 1999 (64 FR 39919, July 23, 1999). 
Since then, the United States Mint has identified portions of the 
regulation in need of revision to update redemption rates and 
procedures, and to resolve an apparent contradiction in the regulation. 
In accordance with Executive Order 13563, appearing at 76 FR 3821 
(January 21, 2011), the United States Mint proposes to amend the 
regulation to improve its consistency and accuracy.
    The first category of proposed significant amendments relates to 
the redemption rates for uncurrent coins (31 CFR 100.10) and bent and 
partial coins (31 CFR 100.11) that have been withdrawn from 
circulation. For uncurrent coins, the proposed rule clarifies the 
procedure for redemption by instructing the public to deposit the 
uncurrent coins with a financial institution that will accept them, or 
with a depository institution that has a direct relationship with a 
Federal Reserve Bank. The proposed amendment also makes clear that a 
Federal Reserve Bank will redeem uncurrent coins based on the policies 
described in the Federal Reserve's Operating Circular 2.
    For redemption of bent and partial coins, the proposed rule updates 
the redemption rates of certain coins to reflect current values and 
compositions of coins being redeemed. For example, in the current 
regulation, the rate for one-cent coins is $1.4585 per pound; this rate 
was derived from the weight of brass one-cent coins (3.11 grams or 
0.1097 ounces each), which the United States Mint has not minted and 
issued since 1982. The weight of the current copper-plated zinc one-
cent coins (2.50 grams or 0.0882 ounces each), however, makes their 
redemption rate $1.8100 per pound. The proposed rule revises the 
redemption rate for unmixed quantities of these copper-plated zinc one-
cent coins.
    The second category of proposed amendments resolves an apparent 
contradiction in the existing regulation. As currently drafted, 31 CFR 
100.12(b) states, ``The United States Mint will not accept fused or 
mixed coins for redemption.'' 31 CFR 100.12(d), however, states, 
``Fused and mixed coins will be redeemed only at the United States 
Mint, P.O. Box 400, Philadelphia, PA 19105.'' The issue of whether the 
United States Mint should accept fused and mixed coins for redemption 
was the subject of the 1999 amendment to 31 CFR part 100. At that time, 
the United States Mint notified the public, at 64 FR 4063 (January 27, 
1999), of its intention to discontinue acceptance of fused and mixed 
coins for redemption because the bureau ordinarily cannot reliably 
ascertain the value of, nor use mechanical methods of destruction or 
reclamation on, deliveries containing coins of mixed alloy categories. 
To resolve this apparent contradiction and clarify the intended meaning 
of the 1999 amendment, which became effective on August 23, 1999, the 
United States Mint proposes to amend 31 CFR 100.12 to eliminate any 
suggestion that the bureau will accept fused or mixed coins for 
redemption.

II. Procedural Analysis

Regulatory Planning and Review

    The proposed rule does not meet the criteria for a ``significant 
regulatory action'' as defined in Executive Order 12866.

Regulatory Flexibility Act Analysis

    It is hereby certified that the proposed rule will not have a 
significant economic impact on a substantial number of small entities. 
Accordingly, a regulatory flexibility analysis is not required. 
Although the United States Mint does not maintain records that 
consistently indicate the business or personal nature of the 
transactions conducted by individuals or entities tendering coins for 
redemption, the majority of coins presented for redemption were 
submitted by individuals transacting with the United States Mint in 
their own names. Even if each such individual were a ``small entity'' 
within the meaning of 5 U.S.C. 604(a), the United States Mint does not 
believe that the quantity of coin redemption transactions indicates 
that the proposed amendment will have a significant economic impact on 
a substantial number of small entities.

III. Request for Comment

    Before the proposed amendments to the Treasury Regulations at 31 
CFR part 100, subpart C, are adopted as final regulations, the United 
States Mint will consider any comments that are submitted timely to the 
bureau as prescribed in this preamble under the ADDRESSES heading. The 
United States Mint and the Department of the Treasury request comments 
on all aspects of the proposed amendments.

IV. Words of Issuance

    For the reasons set forth in the preamble, the United States Mint 
proposes to amend 31 CFR part 100 substantially as follows:

PART 100--EXCHANGE OF PAPER CURRENCY AND COIN

0
1. The authority citation for part 100 continues to read as follows:

    Authority: 31 U.S.C. 321.

Subpart C--Exchange of Coin

0
2. In Sec.  100.10, revise paragraphs (b), (c) and (d) to read as 
follows:


Sec.  100.10  Exchange of uncurrent coins.

* * * * *
    (b) Redemption basis. Members of the public wishing to redeem 
uncurrent coins must deposit the uncurrent coins with a bank or other 
financial institution that will accept them, or with a depository 
institution that has established a direct customer relationship with a 
Federal Reserve Bank. A Federal Reserve Bank will redeem uncurrent 
coins, based on the policies described in the Federal Reserve's 
Operating Circular 2.
    (c) Criteria for acceptance. Depository institutions that redeem 
uncurrent coins must sort the coins by denomination into packages in 
accordance with the Federal Reserve's Operating Circular 2. The Federal 
Reserve Banks reserve the right to reject any shipment containing 
objects that are not U.S. coins or any contaminant that could render 
them unsuitable for coinage metal.
    (d) Redemption sites. The Federal Reserve Banks and branches listed 
in Sec.  100.17 are the only authorized redemption sites at which a 
depository institution that has established a direct customer 
relationship with a Federal Reserve Bank may redeem uncurrent coins.
0
3. In Sec.  100.11, revise paragraphs (b) and (c) and add paragraph (d) 
to read as follows:


Sec.  100.11  Exchange of bent and partial coins.

* * * * *
    (b) Redemption basis--(1) Generally. Persons wanting to redeem bent 
or partial coins shall separate them by denomination in lots of at 
least one pound for each denomination. The United States Mint will 
redeem bent and partial coins on the basis of their weight and 
denomination at the following rates:

[[Page 41470]]

    (A) One-Cent Coins: $1.4585 per pound.
    (B) 5-Cent Coins: $4.5359 per pound.
    (C) Dime, Quarter-Dollar, and Half-Dollar Coins: $20.00 per pound.
    (D) $1 Coins: $56.00 per pound.
    (2) Exceptions. (A) The United States Mint will redeem copper-
plated zinc one-cent coins (one-cent coins inscribed with a year after 
1982) at the face-value equivalent of brass one-cent coins (generally, 
one-cent coins inscribed with a year before 1983) unless the copper-
plated zinc one-cent coins are presented unmixed. The United States 
Mint will redeem unmixed copper-plated zinc one-cent coins at $1.8100 
per pound.
    (B) The United States Mint will redeem unmixed $1 coins inscribed 
with a year before 1979 at $20.00 per pound.
    (c) Criteria for acceptance. Persons wanting to redeem bent and 
partial coins must sort the coins by denomination into packages of not 
less than one pound each and ship the packaged coins, at the person's 
expense and risk of loss, to the authorized redemption site. The United 
States Mint reserves the right to reject any shipment containing 
objects that are not U.S. coins or any contaminant that could render 
them unsuitable for coinage metal.
    (d) Redemption site. The United States Mint at Philadelphia, P.O. 
Box 400, Philadelphia, PA 19105, is the only authorized redemption site 
for bent and partial coins.
0
4. In Sec.  100.12, remove paragraphs (c) and (d).

    Dated: July 2, 2014.
Beverly Ortega Babers,
Chief Administrative Officer, United States Mint.
[FR Doc. 2014-16035 Filed 7-15-14; 8:45 am]
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