I 
112TH CONGRESS 
1ST SESSION H. R. 2977 
To improve the circulation of $1 coins, to remove barrier to the circulation 
of such coins, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 20, 2011 
Mr. SCHWEIKERT (for himself, Mr. HENSARLING, and Mr. LUETKEMEYER) in-
troduced the following bill; which was referred to the Committee on Fi-
nancial Services 
A BILL 
To improve the circulation of $1 coins, to remove barrier 
to the circulation of such coins, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Currency Optimiza-
tion, Innovation, and National Savings Act’’. 
SEC. 2. IMPROVING CIRCULATION AND REMOVING BAR-
RIERS TO CIRCULATION OF $1 COINS. 
(a) DUTIES OF THE BOARD OF GOVERNORS OF THE 
FEDERAL RESERVE SYSTEM.— 
(1) COIN SEQUESTRATION.— 
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(A) IN GENERAL.—Within six months of 
the date of enactment of this Act, the Board of 
Governors of the Federal Reserve System shall 
sequester all $1 coins bearing the design com-
mon to those $1 coins minted and issued from 
1979–1981 and again in 1999. 
(B) TREATMENT OF COINS.—Coins seques-
tered pursuant to subparagraph (A) shall not 
be returned to ordinary circulation or otherwise 
released form storage controlled by the Federal 
Reserve System or an agent of the Federal Re-
serve System. 
(C) EXCEPTION FOR CERTAIN USES.—Not-
withstanding subparagraph (B), coins seques-
tered pursuant to subparagraph (A) may be re-
leased, at face value and in bulk quantities— 
(i) to dealers in collectible coins; and 
(ii) to countries that have adopted the 
United States dollar as their base unit of 
exchange. 
(D) OBSOLETE COINS.—At the end of the 
1-year period beginning on the date of the en-
actment of this Act, the Secretary of the Treas-
ury shall declare all coins described under sub-
paragraph (A) to be obsolete, and such coins— 
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(i) shall be treated in the same man-
ner as all other obsolete United States 
coins; and 
(ii) to the extent such coins remain in 
general circulation, shall remain legal ten-
der. 
(2) QUARTERLY
REPORT
ON
$1
COINS.—The 
Board of Governors of the Federal Reserve System 
shall issue quarterly reports to the Committee on Fi-
nancial Services of the House of Representatives and 
the Committee on Banking, Housing, and Urban Af-
fairs of the Senate on— 
(A) the number of coins sequestered pursu-
ant to paragraph (1)(A); 
(B) the number of coins described in para-
graph (1)(A) that remain in general circulation; 
and 
(C) efforts that have been made to reduce 
the number of coins described in subparagraphs 
(A) and (B) to zero. 
(3) 
IMPROVEMENT
OF
CIRCULATION.—The 
Board of Governors of the Federal Reserve System 
shall— 
(A) undertake efforts to improve the cir-
culation and remove barriers to the circulation 
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of the $1 coin, other than those coins described 
under paragraph (1)(A); 
(B) issue a quarterly report to the Com-
mittee on Financial Services of the House of 
Representatives and the Committee on Bank-
ing, Housing, and Urban Affairs of the Senate 
on— 
(i) what efforts have been made to im-
prove the circulation of $1 coins and what 
efforts are being planned to improve the 
circulation of $1 coins; 
(ii) the success of such efforts, includ-
ing an analysis of such coins held in stor-
age owned or controlled by the Federal Re-
serve System and the number such coins in 
circulation; 
(iii) 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 
(iv) 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 what-
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ever form such end user requires, including 
rolls, disposable tubes, or volume bags of 
such coins. 
(4) OUTREACH AND EDUCATION.—The Board 
of Governors of the Federal Reserve System shall 
continuously conduct outreach and education pro-
grams aimed at helping each business using or ac-
cepting 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. 
(5) REPORT ON NATIVE AMERICAN COINS.—Not 
later than the end of the 3-month period beginning 
on the date of the enactment of this Act, and annu-
ally thereafter, the Board of Governors of the Fed-
eral Reserve System shall issue a report to the Com-
mittee on Financial Services of the House of Rep-
resentatives and the Committee on Banking, Hous-
ing, and Urban Affairs of the Senate on the Board’s 
efforts to improve the circulation of, and remove 
barriers to the circulation of, $1 coins bearing the 
so-called ‘‘Native American’’ designs, including any 
efforts to institute an introductory period for each 
new ‘‘Native American’’ design of the $1 coin during 
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which quantities are available unmixed with other 
designs. 
(6) USE
OF
$1
COINS
BY
FOREIGN
COUN-
TRIES.—The Board of Governors of the Federal Re-
serve System shall work with the Departments of 
State and Treasury to ensure that countries that 
have adopted the dollar as a base unit of exchange 
and which place orders with the Federal Reserve 
System, or through any United States financial in-
stitution, for supplies of $1 monetary units, are fully 
briefed before placing each such order on the dura-
bility and longevity of $1 coins in high-circulation 
economies when used for transactions of a low dollar 
value. 
(b) PUBLICITY REQUIREMENT.—Section 5112(p)(2) 
of title 31, United States Code, is amended by inserting 
after ‘‘Mint’’ the following: ‘‘and the Board of Governors 
of the Federal Reserve System’’. 
(c) REPORT ON IMPLEMENTATION.—Not later than 
the end of the 1-year period beginning on the date of the 
enactment of this Act, and annually thereafter, the Comp-
troller General of the United States and the Inspector 
General of the Federal Reserve System and the Bureau 
of Consumer Financial Protection shall each issue a report 
to the Committee on Financial Services of the House of 
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Representatives and the Committee on Banking, Housing, 
and Urban Affairs of the Senate on steps being taken by 
the Board of Governors of the Federal Reserve System 
to carry out this Act. 
(d) CLARIFICATION WITH RESPECT TO SEIGNIOR-
AGE.—The ninth proviso of section 5136 of title 31, 
United States Code, is amended, by inserting after ‘‘mis-
cellaneous receipts’’ the following: ‘‘and such amount shall 
be included as an estimated receipt of the Government and 
a receipt of the Government under paragraphs (6) and (7), 
respectively, of section 1105(a) in any budget submitted 
under such section’’. 
SEC. 3. SAVING TAXPAYERS FUNDS BY TRANSITIONING TO 
THE USE OF $1 COINS. 
(a) IN GENERAL.—It is the policy of the United 
States that after $1 coins achieve sufficient market pene-
tration 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. 
(b) DEADLINE FOR PLACING $1 FEDERAL RESERVE 
NOTES INTO CIRCULATION.—Federal Reserve banks may 
continue to place into circulation $1 Federal Reserve notes 
until the earlier of— 
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(1) the date on which the number of $1 coins 
placed into circulation after the date of the enact-
ment of this Act exceeds 600,000,000 annually; and 
(2) the date that is 4 years after the date of the 
enactment of this Act. 
(c) TRANSITION PERIOD.—After the date referred to 
in subsection (b), a Federal Reserve bank may not order 
additional $1 Federal Reserve notes but may, for a period 
of one year, continue to place into circulation $1 Federal 
Reserve notes on hand or those deposited with it, except 
for notes described in subparagraph (d). 
(d) REMOVAL OF UNFIT CURRENCY.—After the date 
referred to in subparagraph (b), a Federal Reserve bank 
shall continue to remove unfit currency from circulation, 
and shall continue to destroy such currency. 
(e) EXCEPTION.—Notwithstanding subsections (b) 
and (c), 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. Such notes shall be issued by 1 or 
more Federal Reserve banks in accordance with section 
16 of the Federal Reserve Act and sold by the Board, in 
whole or in part, under procedures prescribed by the 
Board. 
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(f) NO EFFECT
ON LEGAL TENDER.—Notwith-
standing any other subsection of this section, $1 Federal 
Reserve notes are 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. 
Æ 
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