I 

113TH CONGRESS 

1ST SESSION H. R. 3305 

To improve the circulation of $1 coins, to remove barriers to the circulation 

of such coins, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 22, 2013 

Mr. FITZPATRICK (for himself, Mr. FRANKS of Arizona, Mr. GARCIA, Mr. 

BRADY of Pennsylvania, Mr. JONES, Mr. MEEKS, Mr. ENYART, Mr. 

TIBERI, and Mr. TONKO) introduced the following bill; which was referred 

to the Committee on Financial Services 

A BILL 

To improve the circulation of $1 coins, to remove barriers 

to the circulation of such coins, 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’’. 

6 SEC. 2. IMPROVING CIRCULATION AND REMOVING BAR7 RIERS TO CIRCULATION OF $1 COINS. 

8 (a) DUTIES OF THE BOARD OF GOVERNORS OF THE

9 FEDERAL RESERVE SYSTEM.— 


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1 (1) COIN SEQUESTRATION.— 

2 (A) IN GENERAL.—Within six months of 

3 the date of enactment of this Act, the Board of 

4 Governors of the Federal Reserve System shall 

5 sequester all $1 coins bearing the design com6 mon to those $1 coins minted and issued from 

7 1979–1981 and again in 1999. 

8 (B) TREATMENT OF COINS.—Coins seques9 tered pursuant to subparagraph (A) shall not 

10 be returned to ordinary circulation or otherwise 

11 released from storage controlled by the Federal 

12 Reserve System or an agent of the Federal Re13 serve System. 

14 (C) EXCEPTION FOR CERTAIN USES.—Not15 withstanding subparagraph (B), coins seques16 tered pursuant to subparagraph (A) may be re17 leased, at face value and in bulk quantities— 

18 (i) to dealers in collectible coins; and 

19 (ii) to countries that have adopted the 

20 United States dollar as their base unit of 

21 exchange. 

22 (D) OBSOLETE COINS.—At the end of the 

23 1-year period beginning on the date of the en24 actment of this Act, the Secretary of the TreasVerDate Mar 15 2010 02:19 Oct 23, 2013 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3305.IH H3305

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1 ury shall declare all coins described under sub2 paragraph (A) to be obsolete, and such coins— 

3 (i) shall be treated in the same man4 ner as all other obsolete United States 

5 coins; and 

6 (ii) to the extent such coins remain in 

7 general circulation, shall remain legal ten8 der. 

9 (2) QUARTERLY REPORT ON $1 COINS.—The 

10 Board of Governors of the Federal Reserve System 

11 shall issue quarterly reports to the Committee on Fi12 nancial Services of the House of Representatives and 

13 the Committee on Banking, Housing, and Urban Af14 fairs of the Senate on— 

15 (A) the number of coins sequestered pursu16 ant to paragraph (1)(A); 

17 (B) the number of coins described in para18 graph (1)(A) that remain in general circulation; 

19 and 

20 (C) efforts that have been made to reduce 

21 the number of coins described in subparagraphs 

22 (A) and (B) to zero. 

23 (3) IMPROVEMENT OF CIRCULATION.—The 

24 Board of Governors of the Federal Reserve System 

25 shall— 


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1 (A) undertake efforts to improve the cir2 culation and remove barriers to the circulation 

3 of the $1 coin, other than those coins described 

4 under paragraph (1)(A); 

5 (B) issue a quarterly report to the Com6 mittee on Financial Services of the House of 

7 Representatives and the Committee on Bank8 ing, Housing, and Urban Affairs of the Senate 

9 on— 

10 (i) what efforts have been made to im11 prove the circulation of $1 coins and what 

12 efforts are being planned to improve the 

13 circulation of $1 coins; 

14 (ii) the success of such efforts, includ15 ing an analysis of such coins held in stor16 age owned or controlled by the Federal Re17 serve System and the number of such coins 

18 in circulation; 

19 (iii) barriers to the circulation of such 

20 coins, including the availability of such 

21 coins in quantities unmixed with the $1 

22 coins described in paragraph (1)(A); and 

23 (iv) the extent to which the Federal 

24 Reserve System and any agents of the 

25 Federal Reserve System are unable to 


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1 meet end-user requests for delivery of 

2 unmixed quantities of such coins in what3 ever form such end user requires, including 

4 rolls, disposable tubes, or volume bags of 

5 such coins. 

6 (4) OUTREACH AND EDUCATION.—The Board 

7 of Governors of the Federal Reserve System shall 

8 continuously conduct outreach and education pro9 grams aimed at helping each business using or ac10 cepting cash to choose the best mix of $1 coins and 

11 banknotes to facilitate transactions and reduce costs 

12 of transactions and of ‘‘cashing out’’ at the end of 

13 a transaction period. 

14 (5) REPORT ON NATIVE AMERICAN COINS.—Not 

15 later than the end of the 3-month period beginning 

16 on the date of the enactment of this Act, and annu17 ally thereafter, the Board of Governors of the Fed18 eral Reserve System shall issue a report to the Com19 mittee on Financial Services of the House of Rep20 resentatives and the Committee on Banking, Hous21 ing, and Urban Affairs of the Senate on the Board’s 

22 efforts to improve the circulation of, and remove 

23 barriers to the circulation of, $1 coins bearing the 

24 so-called ‘‘Native American’’ designs, including any 

25 efforts to institute an introductory period for each 


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1 new ‘‘Native American’’ design of the $1 coin during 

2 which quantities are available unmixed with other 

3 designs. 

4 (6) USE OF $1 COINS BY FOREIGN COUN5 TRIES.—The Board of Governors of the Federal Re6 serve System shall work with the Departments of 

7 State and the Treasury to ensure that countries that 

8 have adopted the dollar as a base unit of exchange 

9 and which place orders with the Federal Reserve 

10 System, or through any United States financial in11 stitution, for supplies of $1 monetary units, are fully 

12 briefed before placing each such order on the dura13 bility and longevity of $1 coins in high-circulation 

14 economies when used for transactions of a low dollar 

15 value. 

16 (b) PUBLICITY REQUIREMENT.—Section 5112(p)(2) 

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

18 after ‘‘Mint’’ the following: ‘‘and the Board of Governors 

19 of the Federal Reserve System’’. 

20 (c) REPORT ON IMPLEMENTATION.—Not later than 

21 the end of the 1-year period beginning on the date of the 

22 enactment of this Act, and annually thereafter, the Comp23 troller General of the United States and the Inspector 

24 General of the Federal Reserve System and the Bureau 

25 of Consumer Financial Protection shall each issue a report 


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1 to the Committee on Financial Services of the House of 

2 Representatives and the Committee on Banking, Housing, 

3 and Urban Affairs of the Senate on steps being taken by 

4 the Board of Governors of the Federal Reserve System 

5 to carry out this Act. 

6 (d) CLARIFICATION WITH RESPECT TO SEIGNIOR7 AGE.—The ninth proviso of section 5136 of title 31, 

8 United States Code, is amended, by inserting after ‘‘mis9 cellaneous receipts’’ the following: ‘‘and such amount shall 

10 be included as an estimated receipt of the Government and 

11 a receipt of the Government under paragraphs (6) and (7), 

12 respectively, of section 1105(a) in any budget submitted 

13 under such section’’. 

14 SEC. 3. SAVING TAXPAYERS FUNDS BY TRANSITIONING TO 

15 THE USE OF $1 COINS. 

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

17 States that after $1 coins achieve sufficient market pene18 tration such that consumers and retailers are comfortable 

19 using $1 coins and are able to obtain adequate supplies 

20 of $1 coins, $1 coins should replace $1 Federal Reserve 

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

22 by the Federal Reserve System. 

23 (b) DEADLINE FOR PLACING $1 FEDERAL RESERVE

24 NOTES INTO CIRCULATION.—Federal Reserve banks may 


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1 continue to place into circulation $1 Federal Reserve notes 

2 until the earlier of— 

3 (1) the date on which the number of $1 coins 

4 placed into circulation after the date of the enact5 ment of this Act exceeds 600,000,000 annually; or 

6 (2) the date that is 4 years after the date of the 

7 enactment of this Act. 

8 (c) TRANSITION PERIOD.—After the date referred to 

9 in subsection (b), a Federal Reserve bank may not order 

10 additional $1 Federal Reserve notes but may, for a period 

11 of one year, continue to place into circulation $1 Federal 

12 Reserve notes on hand or those deposited with it, except 

13 for notes described in subparagraph (d). 

14 (d) REMOVAL OF UNFIT CURRENCY.—After the date 

15 referred to in subparagraph (b), a Federal Reserve bank 

16 shall continue to remove unfit currency from circulation, 

17 and shall continue to destroy such currency. 

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

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

20 System shall produce such Federal Reserve notes of $1 

21 denomination as the Board determines from time to time 

22 are appropriate solely to meet the needs of collectors of 

23 that denomination. Such notes shall be issued by one or 

24 more Federal Reserve banks in accordance with section 

25 16 of the Federal Reserve Act and sold by the Board, in 


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1 whole or in part, under procedures prescribed by the 

2 Board. 

3 (f) NO EFFECT ON LEGAL TENDER.—Notwith4 standing any other subsection of this section, $1 Federal 

5 Reserve notes are legal tender in the United States for 

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

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

Æ 


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