I

103D CONGRESS

2D SESSION H. R. 5168

To provide for the minting and circulation of one dollar coins and the

establishment of the circulating coinage reserve fund as a successor

to the coinage profit fund, to provide that excess amounts in the circulating coinage reserve fund may be made available to the Community

Development Financial Institutions Fund, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 4, 1994

Mr. LAFALCE introduced the following bill; which was referred to the

Committee on Banking, Finance and Urban Affairs

A BILL

To provide for the minting and circulation of one dollar

coins and the establishment of the circulating coinage

reserve fund as a successor to the coinage profit fund,

to provide that excess amounts in the circulating coinage

reserve fund may be made available to the Community

Development Financial Institutions Fund, 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 ‘‘One Dollar Coin and

5 Community Development Act of 1994’’.
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1 SEC. 2. ONE DOLLAR COINS.

2 (a) COLOR AND CONTENT.—Section 5112(b) of title

3 31, United States Code, is amended—

4 (1) in the 1st sentence, by striking ‘‘dollar,’’;

5 and

6 (2) by inserting after the 4th sentence, the fol7 lowing new sentence: ‘‘The dollar coin shall be gold8 en in color, have an unreeded edge, have tactile and

9 visual features that make the denomination of the

10 coin readily discernible, be minted and fabricated in

11 the United States, and have such metallic,

12 anticounterfeiting properties as United States clad

13 coinage in circulation on the date of the enactment

14 of the One Dollar Coin and Community Develop15 ment Act of 1994.’’.

16 (b) DESIGN OF DOLLAR COIN.—Section 5112(d)(1)

17 of title 31, United States Code, is amended by striking

18 the 5th and 6th sentences and inserting the following new

19 sentence: ‘‘The Secretary of the Treasury shall select an

20 appropriate design for the obverse side of the dollar.’’.

21 (c) EFFECTIVE DATE.—Not later than 18 months

22 after the date of enactment of this Act, the Secretary of

23 the Treasury shall place into circulation 1 dollar coins au24 thorized under subsection (a)(1) of section 5112 of title

25 31, United States Code, which comply with the design re26 quirements of subsections (b) and (d)(1) of such section,
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1 as amended by subsections (a) and (b) of this section. The

2 Secretary may include such coins in any numismatic set

3 produced by the United States Mint before the date the

4 coins are placed in circulation.

5 SEC. 3. CEASING ISSUANCE OF ONE DOLLAR NOTES.

6 (a) IN GENERAL.—After the date that coins de7 scribed in section 2(c) are first placed in circulation, no

8 Federal reserve bank may order or place into circulation

9 any $1 Federal reserve note.

10 (b) REDEMPTION OF $1 NOTES.—

11 (1) IN GENERAL.—Section 5119(b)(1) of title

12 31, United States Code, is amended by adding at

13 the end the following new subparagraph:

14 ‘‘(F) Federal reserve notes in the denomi15 nation of $1.’’.

16 (2) EFFECTIVE DATE.—

17 (A) IN GENERAL.—The amendment made

18 by paragraph (1) shall take effect on the date

19 on which coins minted pursuant to the amend20 ments made by section 2 are first placed in cir21 culation.

22 (B) NOTICE OF EFFECTIVE DATE.—The

23 Secretary of the Treasury shall publish a notice

24 in the Federal Register of the date on which

25 the amendment made by paragraph (1) takes
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1 effect in accordance with subparagraph (A) of

2 this paragraph.

3 (c) EXCEPTION.—The Secretary of the Treasury

4 shall produce only such Federal reserve notes of 1 dollar

5 denomination as are required from time to time to meet

6 the needs of collectors of this series. Such notes shall be

7 produced in sheets and sold by the Secretary, in whole,

8 or in part, at a price that exceeds the face value of the

9 currency by an amount that, at a minimum, reimburses

10 the Secretary for the cost of production.

11 SEC. 4. RESERVE FUND FOR CIRCULATING COINAGE.

12 (a) ESTABLISHMENT.—Section 5111(b) of title 31,

13 United States Code, is amended to read as follows:

14 ‘‘(b) COINAGE FUNDS.—

15 ‘‘(1) COINAGE METAL FUND.—The Secretary of

16 the Treasury—

17 ‘‘(A) shall maintain a coinage metal fund

18 in the Department of the Treasury; and

19 ‘‘(B) may use the fund to buy metal to

20 mint coins.

21 ‘‘(2) CIRCULATING COINAGE RESERVE FUND.—

22 ‘‘(A) ESTABLISHMENT.—The Secretary of

23 the Treasury shall maintain a circulating coin24 age reserve fund in the Department of the

25 Treasury.
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1 ‘‘(B) CREDITS AND DEBITS.—The Sec2 retary shall—

3 ‘‘(i) credit the coinage reserve fund

4 with the amount by which the nominal

5 value of the coins minted and placed into

6 circulation under this subchapter (other

7 than numismatic items) exceeds the cost of

8 the metal; and

9 ‘‘(ii) charge the account with—

10 ‘‘(I) the waste incurred in mint11 ing the coins referred to in clause (i);

12 and

13 ‘‘(II) the cost of distributing the

14 coins, including the cost of coin bags

15 and pallets.

16 ‘‘(C) AVAILABILITY OF FUNDS FOR COM17 MUNITY DEVELOPMENT.—

18 ‘‘(i) IN GENERAL.—Effective for any

19 fiscal year only to the extent and in such

20 amounts as are provided in advance in ap21 propriation Acts, the Secretary may lend

22 excess amounts in the circulating coinage

23 reserve fund to the Community Develop24 ment Institutions Fund for the provision of

25 financial assistance by such Fund through
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1 deposits, credit union shares, and loans in

2 accordance with section 108 of the Com3 munity Development Banking and Finan4 cial Institutions Act of 1994.

5 ‘‘(ii) TERMS AND CONDITIONS.—Any

6 loan by the Secretary to the Community

7 Development Institutions Fund in accord8 ance with clause (i) shall bear such rate of

9 interest and be subject to such other terms

10 and conditions as the Secretary determines

11 to be appropriate.

12 ‘‘(D) INVESTMENT OF BALANCE IN AC13 COUNT.—Subject to subparagraph (C), the Sec14 retary of the Treasury shall invest excess

15 amounts in the circulating coinage reserve fund

16 in—

17 ‘‘(i) instruments issued by the Sec18 retary under chapter 31; and

19 ‘‘(ii) other instruments to the extent,

20 and in such amounts, as may be author21 ized by law.

22 ‘‘(E) PAYMENT TO GENERAL FUND.—In23 terest, dividends, and other earnings on invest24 ments of the circulating coinage reserve fund,

25 including interest on loans to the Community
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1 Development Financial Institutions Fund, shall

2 be paid into the general fund of the Treasury

3 to assist in reducing the deficit.’’.

4 (b) TERMINATION OF COINAGE PROFIT FUND.—The

5 coinage profit fund is hereby abolished and any balance

6 in the account as of such termination shall be transferred

7 by the Secretary to the circulating coinage reserve fund

8 established pursuant to the amendment made by sub9 section (a) as soon as practicable after the date of the

10 enactment of this Act.

Æ