[Federal Register Volume 76, Number 43 (Friday, March 4, 2011)]
[Notices]
[Pages 12225-12226]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-4880]


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DEPARTMENT OF THE TREASURY

United States Mint


Authority To Conduct Research and Development on All Circulating 
Coins

AGENCY: United States Mint, Treasury.

ACTION: Notice with request for comment.

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SUMMARY: Congress recently enacted the Coin Modernization, Oversight, 
and Continuity Act of 2010 (Pub. L. 111-302) to provide the Secretary 
of the Treasury research and development authority for alternative 
metallic coinage materials. Specifically, the Secretary of the Treasury 
is authorized to--(1) conduct any appropriate testing of appropriate 
metallic coinage materials within or outside of the Department of the 
Treasury; and (2) solicit input from or otherwise work in conjunction 
with Federal and nonfederal entities, including independent research 
facilities or current or potential suppliers of the metallic material 
used in volume production of circulating coins. In accordance with 
Public Law 111-302, Section 2(b), in conducting research or soliciting 
input, the Secretary of the Treasury shall consider the following:
    (A) Factors relevant to the potential impact of any revisions to 
the composition of the material used in coin production on the current 
coinage material suppliers;
    (B) factors relevant to the ease of use and ability to co-circulate 
of new coinage materials, including the effect on vending machines and 
commercial coin processing equipment and making certain, to the 
greatest extent practicable, that any new coins work without 
interruption in existing coin acceptance equipment without 
modification; and
    (C) such other factors that the Secretary of the Treasury, in 
consultation with merchants who would be affected by any change in the 
composition of circulating coins, vending machine and other coin 
acceptor manufacturers, vending machine owners and operators, transit 
officials, municipal parking officials, depository institutions, coin 
and currency handlers, armored-car operators, car wash operators, and 
American-owned manufacturers of commercial coin processing equipment, 
considers to be appropriate and in the public interest.
    Additionally, the Secretary of the Treasury is required to report 
biennially to the House Financial Services Committee and the Senate 
Committee on Banking, Housing, and Urban Affairs on the production 
costs for each circulating coin, cost trends for such production, and 
possible new metallic materials or technologies for the production of 
circulating coins.
    The Secretary of the Treasury has delegated to the Director of the 
United States Mint the authority to conduct research and development 
for alternative metallic coinage materials, to consider the factors 
specified in Public Law 111-302, Section 2(b), and to prepare a 
biennial report to the Congress on the current status of coin 
production costs and analysis of alternative metallic coinage 
materials.
    Accordingly, the United States Mint requests public comment on the 
factors specified in Public Law 111-302, Section 2(b).

DATES: Comments must be submitted on or before April 4, 2011.

ADDRESSES: You may submit written comments by any of the following 
methods:
    <bullet> E-mail: <a href="/cdn-cgi/l/email-protection#65060a0c0b08041100170c040916251016080c0b114b11170004164b020a13"><span class="__cf_email__" data-cfemail="e3808c8a8d8e829786918a828f90a396908e8a8d97cd9791868290cd848c95">[email protected]</span></a>
    <bullet> Fax: (202) 756-6500
    <bullet> Mail: New Coin Materials Comments, Mail Stop: 
Manufacturing 6 North, United States Mint, 801 Ninth Street, NW., 
Washington, DC 20220.
    <bullet> Hand Delivery/Courier: Same as mail address.

FOR FURTHER INFORMATION CONTACT: Jean Gentry, Deputy Chief Counsel, 
United States Mint at (202) 354-7359 (not a toll-free call).

SUPPLEMENTARY INFORMATION:

I. Background

    Because of prevailing commodity market prices of certain base 
metals, the material costs for all circulating coin denominations have 
risen dramatically for the past several years. Most recently, the value 
of the metal content of one-cent and 5-cent coins has exceeded their 
face value, compelling the United States Mint to implement regulations 
to protect them from arbitrage--speculators buying large quantities of 
these coins to profit from their metal value. This situation prompted 
Congress to pass legislation to give the Secretary of the Treasury 
research and development authority to conduct studies for alternative 
metallic coinage materials. The new law requires the Secretary of the 
Treasury to consider certain factors in the conduct of research, 
development, and the solicitation of input or work in conjunction with 
Federal and nonfederal entities, and in reporting to the Congress with 
recommendations.
    The Secretary of the Treasury has delegated to the Director of the 
United States Mint the authority to consider these factors and to 
prepare a report to the Congress recommending possible new metallic 
materials or technologies for the production of circulating coins. 
Accordingly, the United States Mint seeks information from the public 
on the factors specified in Public Law 111-302, Section 2(b), including 
factors that submitters believe the Secretary of the Treasury should 
consider to be appropriate and in the public interest.

II. Request for Comment

    The United States Mint requests public comment from all interested 
persons regarding the metallic composition of all circulating coins 
based on the factors specified in Public Law 111-302, Section 2(b). 
These factors may include, but are not limited to, the effect of new 
coinage metallic materials on the current suppliers of coinage 
materials; the acceptability of new coinage metallic materials, 
including physical, chemical, metallurgical and technical 
characteristics; metallic material,

[[Page 12226]]

fabrication, minting, and distribution costs; metallic material 
availability and sources of raw metals; coinability; durability; 
sorting, handling, packaging and vending machines; appearance; risks to 
the environment or public safety; resistance to counterfeiting; 
commercial and public acceptance; and any other factor considered to be 
appropriate and in the public interest.
    The United States Mint is not soliciting suggestions or 
recommendations on specific metallic coinage materials, and any such 
suggestions or recommendations will not be considered at this time. The 
United States Mint seeks public comment only on the factors to be 
considered in the research and evaluation of potential new metallic 
coinage materials.

    Dated: February 28, 2011.
Richard A. Peterson,
Acting Director, United States Mint.
[FR Doc. 2011-4880 Filed 3-3-11; 8:45 am]
BILLING CODE 4810-37-P


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