II 

115TH CONGRESS 

1ST SESSION S. 759 

To save taxpayers money by improving the manufacturing and distribution 

of coins and notes, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 29, 2017 

Mr. MCCAIN (for himself and Mr. ENZI) introduced the following bill; which 

was read twice and referred to the Committee on Banking, Housing, and 

Urban Affairs 

A BILL 

To save taxpayers money by improving the manufacturing 

and distribution of coins and notes, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Currency Optimiza5 tion, Innovation, and National Savings Act of 2017’’. 

6 SEC. 2. SAVING TAXPAYERS MONEY BY SUSPENDING PRO7 DUCTION OF THE PENNY. 

8 (a) POLICY OF THE UNITED STATES.—It is the pol9 icy of the United States that— 


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1 (1) sufficient one-cent coins have already been 

2 minted to meet demand; 

3 (2) taxpayers have been and would continue to 

4 lose money producing the one-cent coin; and 

5 (3) further production of the one-cent coin is 

6 not necessary for the next decade. 

7 (b) TEMPORARY SUSPENSION OF PRODUCTION OF

8 THE ONE-CENT COIN.—Except as provided in subsection 

9 (c) and notwithstanding any other provision of law, the 

10 Secretary of the Treasury shall cease production of any 

11 new one-cent coins for the 10-year period beginning on 

12 the date of enactment of this Act. 

13 (c) EXCEPTION.— 

14 (1) IN GENERAL.—The Secretary of the Treas15 ury shall continue to produce one-cent coins as ap16 propriate solely to meet the needs of numismatic col17 lectors of that denomination. 

18 (2) SALE.—The one-cent coins produced under 

19 paragraph (1) shall be sold in accordance with other 

20 general provisions governing collectible coins (as op21 posed to circulating coins). 

22 (3) NET RECEIPTS.—The net receipts from the 

23 sale of one-cent coins produced under this exception 

24 shall equal the total cost of production, including 

25 variable costs and the appropriate share of fix costs 


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1 of production, as determined by the Secretary of the 

2 Treasury. 

3 (d) GAO STUDY.—Not later than 3 years after the 

4 date of enactment of this Act, the Comptroller General 

5 of the United States shall— 

6 (1) study the effect of the suspension of produc7 tion of the one-cent coin; and 

8 (2) submit to the Committee on the Budget and 

9 the Committee on Banking, Housing, and Urban Af10 fairs of the Senate and the Committee on the Budg11 et and the Committee on Financial Services of the 

12 House of Representatives a report— 

13 (A) on whether production should remain 

14 suspended or should be reinstated; and 

15 (B) that considers— 

16 (i) the net savings to taxpayers from 

17 suspension of production; 

18 (ii) whether public demand for one19 cent coins was able to be continuously met 

20 during the period of suspension; 

21 (iii) whether public demand for one22 cent coins would likely continue to be met 

23 in the future without new production; 

24 (iv) whether the one-cent denomina25 tion of coin should be permanently ended 


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1 as was the case with the one-half cent coin; 

2 and 

3 (v) any other factors that are rel4 evant. 

5 (e) NO EFFECT ON LEGAL TENDER.—Notwith6 standing any other provision of this section, one-cent coins 

7 are legal tender in the United States for all debts, public 

8 and private, public charges, taxes, and duties, regardless 

9 of the date of minting or issue. 

10 SEC. 3. SAVING TAXPAYERS MONEY BY CHANGING THE 

11 COMPOSITION OF THE NICKEL. 

12 (a) NEW COMPOSITION REQUIRED.—Section 5112 of 

13 title 31, United States Code, is amended by adding at the 

14 end the following: 

15 ‘‘(w) COMPOSITION OF CIRCULATING COINS.— 

16 ‘‘(1) IN GENERAL.—Notwithstanding any other 

17 provision of law, the Director of the United States 

18 Mint shall modify the composition of the five-cent 

19 coin in accordance with a study and analysis con20 ducted by the United States Mint to a variant of 

21 cupronickel composition equal to 80 percent copper 

22 and 20 percent nickel. 

23 ‘‘(2) EFFECT.—This subsection shall remain in 

24 effect as long as the Director of the United States 


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1 Mint verifies that the modification described in para2 graph (1) will— 

3 ‘‘(A) reduce costs to the taxpayer; 

4 ‘‘(B) is found to be seamless through test 

5 by most coin-acceptors; and 

6 ‘‘(C) will have no impact on the public or 

7 on stakeholders. 

8 ‘‘(3) INCREASE IN COPPER CONTENT.—The Di9 rector of the United States Mint may increase the 

10 percentage of copper and decrease the percentage of 

11 nickel in the five-cent coin if— 

12 ‘‘(A) the Director of the United States 

13 Mint submits to Congress a study on such a 

14 modification; 

15 ‘‘(B) the Director of the United States 

16 Mint makes the findings described in paragraph 

17 (2); and 

18 ‘‘(C) the 90-day period beginning on the 

19 date on which the study is submitted under 

20 subparagraph (A) has expired.’’. 

21 SEC. 4. SAVING TAXPAYERS MONEY BY REPLACING $1 

22 NOTES WITH $1 COINS. 

23 (a) IN GENERAL.—It is the policy of the United 

24 States that $1 coins should replace $1 Federal Reserve 


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1 notes as the only $1 monetary unit issued and circulated 

2 by the Board of Governors of the Federal Reserve System. 

3 (b) FINAL DATE FOR PLACING $1 NOTES INTO CIR4 CULATION.—Beginning on the date that is 2 years after 

5 the date of enactment of this Act, the Board of Governors 

6 of the Federal Reserve System may not issue $1 Federal 

7 Reserve notes. 

8 (c) TRANSITION PERIOD.—Before the date described 

9 in subsection (b), the Board of Governors of the Federal 

10 Reserve System shall ensure adequate supplies of $1 coins 

11 to meet the demand of such coins on and after such date. 

12 (d) REMOVAL AND DESTRUCTION OF $1 FEDERAL

13 RESERVE NOTES.—The Board of Governors of the Fed14 eral Reserve System shall ensure that all $1 Federal Re15 serve notes removed from circulation in accordance with 

16 the date described in subsection (b) have been destroyed. 

17 (e) EXCEPTION.—Notwithstanding subsections (b) 

18 and (c), the Board of Governors of the Federal Reserve 

19 System shall produce such Federal Reserve notes of $1 

20 denomination as the Board of Governors determines from 

21 time to time are appropriate solely to meet the needs of 

22 numismatic collectors of that denomination. Such collect23 ible versions of $1 Federal Reserve notes shall be sold in 

24 accordance with other general provisions governing collect25 ible versions of notes. 


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1 (f) NO EFFECT ON LEGAL TENDER.—Notwith2 standing any other provision of this section, $1 Federal 

3 Reserve notes are legal tender in the United States for 

4 all debts, public and private, public charges, taxes, and 

5 duties, regardless of the date of printing or issue. 

Æ 


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