Sec. 205. Replacing the $1 note with the $1 coin
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/bill/114/hr/3300/ih/section-205·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Not later than 180 days after 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 through 1981 and in 1999. Coins sequestered pursuant to subparagraph
(A)shall not be returned to ordinary circulation or otherwise released from storage controlled by the Federal Reserve System or an agent of the Federal Reserve System. Notwithstanding subparagraph (B), coins sequestered pursuant to subparagraph
(A)may be released, at face value and in bulk quantities— to dealers in collectible coins; and to countries that have adopted the United States dollar as their base unit of exchange. On the date that is 1 year after the date of enactment of this Act, the coins described in subparagraph (A)— shall be declared by the Secretary of the Treasury to be obsolete; shall be treated in the same manner as all other obsolete United States coins; and to the extent the coins remain in general circulation, shall remain legal tender. The Board of Governors of the Federal Reserve System shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a quarterly report on— the number of coins sequestered pursuant to paragraph (1)(A); the number of coins described in paragraph (1)(A) that remain in general circulation; and efforts that have been made to reduce the number of coins described in subparagraphs
(A)and
(B)to zero. The Board of Governors of the Federal Reserve System shall— undertake efforts to improve the circulation and remove barriers to the circulation of the $1 coin, other than the coins described under paragraph (1)(A); submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a quarterly report on— the efforts made to improve the circulation of $1 coins and the efforts being planned to improve the circulation of $1 coins; the success of such efforts, including an analysis of the coins described in clause
(i)held in storage owned or controlled by the Federal Reserve System and the number of such coins in circulation; 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 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. 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. The Board of Governors of the Federal Reserve System shall work with the Secretary of State and the Secretary of the Treasury to ensure that countries that have adopted the dollar as a base unit of exchange and that 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. Section 5112(p)(2) of title 31, United States Code, is amended by striking Mint, and inserting Mint and the Board of Governors of the Federal Reserve System . Not later than 1 year after the date of enactment of this Act, and annually thereafter, the Comptroller General of the United States and the Inspector General of the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection shall each submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report on steps being taken by the Board of Governors of the Federal Reserve System to carry out this Act. The ninth proviso of section 5136 of title 31, United States Code, is amended by inserting and such amount shall be included as an estimated receipt of the Government under section 1105(a)(6) and a receipt of the Government under section 1105(a)(7) in any budget submitted under that section after miscellaneous receipts . 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. Federal Reserve banks may continue to place into circulation $1 Federal Reserve notes until the earlier of— 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; or the date that is 4 years after the date of the enactment of this Act. Beginning on the date described in subsection (f), a Federal Reserve bank— may not order additional $1 Federal Reserve notes; and except as provided in subsection (h), may, during the 1-year period beginning on the date described in subsection (f), place into circulation $1 Federal Reserve notes on hand or those deposited with the Federal Reserve bank. Beginning on the date described in subparagraph (f), a Federal Reserve bank shall— remove unfit currency from circulation; and destroy the currency described in paragraph (1). Notwithstanding subsections
(f)and (g), 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. The notes described in paragraph
(1)shall— be issued by 1 or more Federal Reserve banks in accordance with section 16 of the Federal Reserve Act ( 12 U.S.C. 411 ); and sold by the Board of Governors of the Federal Reserve System, in whole or in part, under procedures prescribed by the Board. Notwithstanding any other provision of this section, $1 Federal Reserve notes shall be considered 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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Sec. 205
Replacing the $1 note with the $1 coin
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