Exchange of Coin, 43730-43732 [2017-19885]
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43730
Federal Register / Vol. 82, No. 180 / Tuesday, September 19, 2017 / Proposed Rules
section 149(a), such as bonds that are
tax-exempt under section 103. For
purposes of determining whether an
obligation is described in section
4701(b)(1)(B), the rules of § 1.163–5(c) of
this chapter apply.
(4) Registered form. The term
registered form has the same meaning as
in § 1.163–5(b) of this chapter.
(5) Issuer—(i) In general. Except as
provided in paragraph (b)(5)(ii) of this
section, the term issuer is the person
whose interest deduction would be
disallowed solely by reason of section
163(f)(1).
(ii) Sponsor treated as issuer. A passthrough certificate (as defined in
§ 1.163–5(a)(3)(i)(B) of this chapter), a
participation interest described in
§ 1.163–5(a)(3)(ii) of this chapter, or a
regular interest in a REMIC, as defined
in sections 860D and 860G and the
regulations thereunder, is considered to
be issued solely by the recipient of the
proceeds from the issuance of the
certificate or interest (the sponsor). The
sponsor is therefore liable for any excise
tax under section 4701 that may be
imposed with reference to the principal
amount of the pass-through certificate,
participation interest, or regular interest.
*
*
*
*
*
(e) Applicability date—(1) In general.
* * *
(2) Exception. Notwithstanding
paragraph (e)(1) of this section,
paragraphs (b)(3), (4), and (5) of this
section apply to obligations issued after
March 18, 2012. For the rules that apply
to obligations issued on or before March
18, 2012, see § 46.4701–1 as contained
in 26 CFR part 46, revised as of the date
of the most recent annual revision.
Kirsten Wielobob,
Deputy Commissioner for Services and
Enforcement.
[FR Doc. 2017–19753 Filed 9–15–17; 4:15 pm]
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
33 CFR 100
United States Mint
asabaliauskas on DSKBBXCHB2PROD with PROPOSALS
Exchange of Coin
AGENCY: United States Mint, Treasury.
ACTION: Notice of proposed rulemaking.
The United States Mint
proposes to revise its regulations
relating to the exchange of uncurrent,
bent, partial, fused, and mixed coins.
The proposed revisions include updates
to redemption rates and procedures
previously proposed in the Federal
Register on July 16, 2014, as well as
revisions that will enhance the integrity
SUMMARY:
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17:35 Sep 18, 2017
Jkt 241001
of the acceptance and processing of bent
and partial United States coins.
DATES: Send comments on or before
November 3, 2017.
ADDRESSES: The United States Mint
invites comments on all aspects of this
proposed revision. You may send
comments, identified by docket number
and/or RIN number, by any of the
following methods:
• Federal eRulemaking Portal:
www.regulations.gov. Follow the
instructions for sending comments.
• Mail: Submit all written comments
to Mutilated Coin Redemption Program;
Financial Directorate; United States
Mint; 801 9th Street NW., Washington,
DC 20220.
• Hand Delivery/Courier: Same as
mail address.
Instructions: All submissions received
must include the agency name and
docket number or Regulatory
Information Number (RIN) for this
rulemaking. All comments received will
be posted without change to
regulations.gov, including any personal
information provided. For additional
information on the rulemaking process,
see the ‘‘Public Participation’’ heading
of the SUPPLEMENTARY INFORMATION
section of this document.
FOR FURTHER INFORMATION CONTACT:
Sheila Barnett, Legal Counsel, Office of
the Chief Counsel, United States Mint,
at (202) 354–7624 or sbarnett@
usmint.treas.gov.
SUPPLEMENTARY INFORMATION:
I. Background
The Treasury Regulations appearing
at 31 CFR part 100, subpart C, are
promulgated under 31 U.S.C. 5120, and
relate to the exchange of uncurrent,
bent, partial, fused, and mixed coins.
The last amendment to 31 CFR part 100,
subpart C, was on August 23, 1999.
Since then, the United States Mint has
identified portions of the regulations in
need of revision to update redemption
rates and procedures, and to enhance
the integrity of the acceptance and
processing of bent and partial United
States coins.
The first category of proposed
revisions would update and improve the
redemption process of bent and partial
coins to enhance security and ensure
the integrity of United States coinage.
These revisions were not previously
proposed. The revisions would establish
procedures for certifying participants
based on submission amounts and
frequency, sampling submissions to
authenticate material, conducting site
visits for certain participants, and
requiring information on how the
submission came to be bent or partial.
The revisions will also inform
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Fmt 4702
Sfmt 4702
submitters of required banking
information. Lastly, the revisions would
provide the United States Mint
discretion to cease processing
submissions that appear to be part of an
illegal scheme, or contain material that
is not identifiable as bent or partial
United States coinage.
The second category of proposed
revisions, previously proposed in 79 FR
41468, July 16, 2014, relates to the
redemption rates for uncurrent coins
and bent and partial coins that have
been withdrawn from circulation. For
uncurrent coins, the revision would
clarify the procedure for redemption by
instructing the public to deposit the
uncurrent coins with a financial
institution that will accept them, or
with a depository institution that has a
direct relationship with a Federal
Reserve Bank. The revision would make
clear that a Federal Reserve Bank will
redeem uncurrent coins based on the
policies described in the Federal
Reserve’s Operating Circular 2.
For bent or partial coins, the proposed
revision would update the redemption
rates of certain coins to reflect the
current values and compositions of
coins being redeemed. For example, in
the existing regulation, the redemption
rate for one-cent coins is $1.4585 per
pound; this redemption rate was
derived from the weight of brass onecent coins (3.11 grams or 0.1097 ounces
each), which the United States Mint has
not minted and issued since 1982. In
1983, the United States Mint began
minting and issuing only copper-plated
zinc one-cent coins, which weigh 2.50
grams or 0.0882 ounces each. Due to the
weight difference, a pound (the
minimum weight for redemption) of
copper-plated zinc one-cent coins
contains a higher quantity of coins than
a pound of brass one-cent coins. The
proposed revisions would make the
redemption rate $1.8100 for a pound
consisting solely of copper-plated zinc
one-cent coins. For brass one-cent coins,
or a mix of both brass and copper-plated
zinc one-cent coins, the lower
redemption rate of $1.4585 will apply.
A similar update would be made to the
redemption rate for $1 coins.
The third category of proposed
revisions, also previously proposed in
79 FR 41468, July 16, 2014, would
clarify that the United States Mint will
not accept fused coins. The United
States Mint will also not accept mixed
coins (coins of several alloy categories
presented together) for redemption, with
the exception of bent or partial one-cent
coins and $1 coins that are presented in
mixed years.
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Federal Register / Vol. 82, No. 180 / Tuesday, September 19, 2017 / Proposed Rules
The fourth category of proposed
revisions puts the public on notice that
the Director of the United States Mint
may provide information pertaining to
any bent or partial coin submission to
law enforcement officials or other third
parties for purposes of investigating
related criminal activity or for purposes
of seeking civil judgment. The revisions
would also notify potential participants
that they may be held criminally and/
or civilly liable, fined, and/or
imprisoned for fraudulent submissions.
asabaliauskas on DSKBBXCHB2PROD with PROPOSALS
II. Public Participation
The United States Mint previously
proposed updates to redemption rates
and procedures in 79 FR 41468, July 16,
2014, and requested comments. The
United States Mint received one
comment, but it was not responsive to
the proposed updates. A final rule was
not published.
In 81 FR 75922, Nov. 1, 2016, the
United States Mint issued a request for
public comment on new ways to
enhance the integrity of the acceptance
and processing of bent and partial coins.
Seventeen comments were received and
reviewed. The majority of comments
were submitted by individuals or
entities that previously exchanged bent
or partial coins with the United States
Mint.
In general, most comments expressed
support for requiring participant
certification, particularly for
participants submitting large quantities
of bent or partial coins. Many comments
expressed concern with the cost and
feasibility of coinage material
authentication but supported sampling
or spot testing by the United States
Mint.
Many comments supported the
suggestion of requiring chain of custody
information regarding the bent or partial
coin submissions. Comments from
stakeholders in the recycling industry,
however, discussed the difficulty they
face in tracing coins recovered by auto
and appliance shredding, and therefore
recommended that recyclers be
considered the point of origin. Multiple
comments noted the importance of
documenting the chain of custody of
coins that had circulated outside of the
United States.
The suggestion of annual limitations
on submissions was largely disfavored
by those who submitted comments.
Many comments described a backlog of
bent or partial coins from the
suspension of the exchange program
and a lack of alternative forums to
redeem such coins.
VerDate Sep<11>2014
17:35 Sep 18, 2017
Jkt 241001
III. Procedural Analysis
Regulatory Planning and Review
The Office of Management and Budget
has determined that this proposed rule
does not constitute a ‘‘significant
regulatory action’’ under Executive
Order 12866 or Executive Order 13771.
Regulatory Flexibility Act Analysis
It is hereby certified that the proposed
revisions will not have a significant
economic impact on a substantial
number of small entities. Accordingly, a
regulatory flexibility analysis under the
Regulatory Flexibility Act, 5 U.S.C. 601
et seq., is not required. First, the
regulations do not directly regulate any
entities. The redemption of uncurrent,
bent, or partial coins is a discretionary
service offered to the public;
participation is voluntary. Second,
many of the coins presented for
redemption in the past were submitted
by individuals transacting with the
United States Mint in their own names.
The number of entities tendering
significant quantities of coins for
redemption is small. Even if each such
individual or entity qualified as a
‘‘small entity’’ within the meaning of 5
U.S.C. 604(a), the United States Mint
does not believe that the proposed
revisions are likely to have a significant
economic impact. The revisions do not
change or limit the scope of what may
be submitted for redemption or who
may submit them. The revisions may
require additional information from
participants to deter potential fraud and
abuse, but the added administrative
costs for participants are expected to be
minimal.
IV. Request for Comment
Before the proposed revisions to the
Treasury Regulations at 31 CFR part
100, subpart C, are adopted as final
regulations, the United States Mint will
consider any comments that are
submitted to the bureau as prescribed in
this preamble under the ‘‘Dates’’ and
‘‘Addresses’’ headings. The United
States Mint and the Department of the
Treasury request comments on all
aspects of the proposed revisions.
List of Subjects in 31 CFR Part 100
Coins.
For the reasons set forth in the
preamble, the United States Mint
proposes to revise 31 CFR part 100,
subpart C as follows:
PART 100—EXCHANGE OF PAPER
CURRENCY AND COIN
Subpart C—Request for Examination of
Coin for Possible Redemption
Sec.
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43731
100.10 Request for examination of
uncurrent coin for possible redemption.
100.11 Request for examination of bent or
partial coin for possible redemption.
100.12 Exchange of fused or mixed coin.
100.13 Notices.
PART 100—EXCHANGE OF PAPER
CURRENCY AND COIN
Subpart C—Request for Examination
of Coin for Possible Redemption
§ 100.10 Request for examination of
uncurrent coin for possible redemption.
(a) Definition. Uncurrent coins are
whole U.S. coins which are merely
worn or reduced in weight by natural
abrasion yet are readily and clearly
recognizable as to genuineness and
denomination and which are machine
countable.
(b) Redemption process. The United
States Mint will not accept uncurrent
coins for redemption. Members of the
public wishing to redeem lawfully held
uncurrent coins must deposit the
uncurrent coins with a bank or other
financial institution that will accept
them, or with a depository institution
that has established a direct customer
relationship with a Federal Reserve
Bank. A Federal Reserve Bank will
redeem uncurrent coins, based on the
policies described in the Federal
Reserve’s Operating Circular 2.
(c) Criteria for acceptance. Depository
institutions that redeem uncurrent coins
must sort the coins by denomination
into packages in accordance with the
Federal Reserve’s Operating Circular 2.
The Federal Reserve Banks have the
right to reject any shipment containing
objects that are not U.S. coins or any
contaminant that could render the
uncurrent coins unsuitable for coinage
metal.
(d) Redemption sites. The Federal
Reserve Banks and branches listed in
§ 100.17 are the only authorized
redemption sites at which a depository
institution that has established a direct
customer relationship with a Federal
Reserve Bank may redeem uncurrent
coins.
§ 100.11 Request for examination of bent
or partial coin for possible redemption.
(a) General. Lawfully held bent or
partial coins of the United States may be
submitted to the United States Mint for
examination in accordance with the
provisions in this subpart. Any
submission under this subpart shall be
deemed an acceptance of all provisions
of this subpart.
(b) Definitions. (1) Bent coins are U.S.
coins which are bent or deformed so as
to preclude normal machine counting
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Federal Register / Vol. 82, No. 180 / Tuesday, September 19, 2017 / Proposed Rules
but which are readily and clearly
identifiable as to genuineness and
denomination.
(2) Partial coins are U.S. coins which
are not whole; partial coins must be
readily and clearly identifiable as to
genuineness and denomination.
(3) Participants are individuals or
businesses that submit coins through
the redemption process.
(c) Redemption process.
(1) Depending on submission amount
and frequency, participants may be
subject to a certification process by the
United States Mint. The established
annual weight threshold and details
about the participant certification
process will be published on the United
States Mint’s Web site. If certification is
required, it must be done prior to
submission.
(2) All submissions for review shall
include an estimate of the value of the
coins and an explanation of how the
submission came to be bent or partial.
The submission should also contain the
bank account number and routing
number for a checking or savings
account at a bank or other financial
institution (such as a mutual fund,
brokerage firm, or credit union) in the
United States.
(3) Participants may be required to
provide documentation for how the
participant came into custody of the
bent or partial coins.
(4) The United States Mint reserves
the right to test samples from any
submission to authenticate the material.
The size of the sample will be limited
to the amount necessary for
authentication. Testing may result in
partial or complete destruction of the
sample.
(5) The United States Mint reserves
the right to conduct site visits for
participants over a certain volume
threshold to verify information provided
to the United States Mint.
(6) No redemption will be made
when:
(i) A submission, or any portion of a
submission, demonstrates a pattern of
intentional mutilation or an attempt to
defraud the United States;
(ii) A submission appears to be part
of, or intended to further, any criminal
activity;
(iii) A submission contains a material
misrepresentation of facts;
(iv) Material presented is not
identifiable as United States coins. In
such instances, the participant will be
notified to retrieve the entire
submission, at the participant’s sole
expense, within 30 days. If the
submission is not retrieved in a timely
manner, the entire submission will be
treated as voluntarily abandoned
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16:33 Sep 18, 2017
Jkt 241001
property, pursuant to 41 CFR 102–41.80,
and will be retained or disposed of by
the United States Mint;
(v) A submission contains any
contaminant that could render the coins
unsuitable for coinage metal. In such
instances, the participant will be
notified to retrieve the entire
submission, at the participant’s sole
expense, within 30 days. If the
submission is not retrieved in a timely
manner, the entire submission will be
treated as voluntarily abandoned
property, pursuant to 41 CFR 102–41.80,
and will be retained or disposed of by
the United States Mint; or
(vi) A submission contains more than
a nominal amount of uncurrent coins. In
such instances, the participant may be
notified to retrieve the entire
submission, at the participant’s sole
expense, within 30 days. If the
submission is not retrieved in a timely
manner, the entire submission will be
treated as voluntarily abandoned
property, pursuant to 41 CFR 102–41.80,
and will be retained or disposed of by
the United States Mint.
(7) The Director of the United States
Mint, or designee, shall have final
authority with respect to all aspects of
redemptions of bent or partial coin
submissions.
(d) Redemption rates.
(1) Generally. Participants shall
separate bent or partial coins by
denomination in lots of at least one
pound for each denomination category.
The United States Mint will redeem
bent or partial coins on the basis of their
weight and denomination at the
following rates:
(i) One-Cent Coins: $1.4585 per
pound.
(ii) 5-Cent Coins: $4.5359 per pound.
(iii) Dime, Quarter-Dollar, and HalfDollar Coins: $20.00 per pound.
(iv) $1 Coins: $20.00 per pound.
(2) Exceptions. (i) The United States
Mint will redeem one-cent coins
inscribed with a year after 1982 at the
rate set forth at subparagraph (1)(i) of
this subsection unless such one-cent
coins are presented unmixed from onecent coins inscribed with a year before
1983. The United States Mint will
redeem unmixed one-cent coins
inscribed with a year after 1982 at a rate
of $1.8100 per pound.
(ii) The United States Mint will
redeem $1 coins inscribed with a year
after 1978 at the rate set forth at
subparagraph (1)(iv) of this subsection
unless such $1 coins are presented
unmixed from $1 coins inscribed with
a year before 1979. The United States
Mint will redeem unmixed $1 coins
inscribed with a year after 1978 at a rate
of $56.00 per pound.
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Fmt 4702
Sfmt 9990
(e) Redemption sites. Coins are
shipped at the sender’s risk of loss and
expense.
(1) Bent and partial coins submitted
in quantities less than or equal to a
threshold established annually will be
redeemed only at the United States Mint
at Philadelphia, P.O. Box 400,
Philadelphia, PA 19105.
(2) Bent and partial coins submitted
in quantities greater than a threshold
established annually should be
scheduled with the United States Mint
to be sent directly to the authorized
recycler(s) of the United States Mint.
§ 100.12
Exchange of fused or mixed coin.
(a) Definitions. (1) Fused coins are
U.S. coins which are melted to the
extent that they are bonded together.
(2) Mixed coins are U.S. coins of
several alloy categories which are
presented together, but are readily and
clearly identifiable as U.S. coins.
(b) The United States Mint will not
accept fused coins for redemption. The
United States Mint will not accept
mixed coins for redemption, except as
provided for in § 100.11(d)(2).
§ 100.13
Notices.
(a) Additional information and
procedures about the United States
Mint’s redemption of bent or partial
coins can be found on the United States
Mint’s Web site.
(b) Criminal penalties connected with
the defacement or mutilation of U.S.
coins are provided in 18 U.S.C. 331.
(c) The Director of the United States
Mint may provide information
pertaining to any bent or partial coin
submissions to law enforcement
officials or other third parties for
purposes of investigating related
criminal activity or for purposes of
seeking a civil judgment.
(d) Whoever intentionally files a false
claim seeking reimbursement for
uncurrent, bent or partial coins may be
held criminally liable under a number
of statutes including 18 U.S.C. 287 and
18 U.S.C. 1341 and may be held civilly
liable under 31 U.S.C. 3729, et seq.
Dated: September 13, 2017.
Jean Gentry,
Chief Counsel, United States Mint.
[FR Doc. 2017–19885 Filed 9–18–17; 8:45 am]
BILLING CODE P
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19SEP1
Agencies
[Federal Register Volume 82, Number 180 (Tuesday, September 19, 2017)]
[Proposed Rules]
[Pages 43730-43732]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-19885]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
33 CFR 100
United States Mint
Exchange of Coin
AGENCY: United States Mint, Treasury.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: The United States Mint proposes to revise its regulations
relating to the exchange of uncurrent, bent, partial, fused, and mixed
coins. The proposed revisions include updates to redemption rates and
procedures previously proposed in the Federal Register on July 16,
2014, as well as revisions that will enhance the integrity of the
acceptance and processing of bent and partial United States coins.
DATES: Send comments on or before November 3, 2017.
ADDRESSES: The United States Mint invites comments on all aspects of
this proposed revision. You may send comments, identified by docket
number and/or RIN number, by any of the following methods:
Federal eRulemaking Portal: www.regulations.gov. Follow
the instructions for sending comments.
Mail: Submit all written comments to Mutilated Coin
Redemption Program; Financial Directorate; United States Mint; 801 9th
Street NW., Washington, DC 20220.
Hand Delivery/Courier: Same as mail address.
Instructions: All submissions received must include the agency name
and docket number or Regulatory Information Number (RIN) for this
rulemaking. All comments received will be posted without change to
regulations.gov, including any personal information provided. For
additional information on the rulemaking process, see the ``Public
Participation'' heading of the SUPPLEMENTARY INFORMATION section of
this document.
FOR FURTHER INFORMATION CONTACT: Sheila Barnett, Legal Counsel, Office
of the Chief Counsel, United States Mint, at (202) 354-7624 or
sbarnett@usmint.treas.gov.
SUPPLEMENTARY INFORMATION:
I. Background
The Treasury Regulations appearing at 31 CFR part 100, subpart C,
are promulgated under 31 U.S.C. 5120, and relate to the exchange of
uncurrent, bent, partial, fused, and mixed coins. The last amendment to
31 CFR part 100, subpart C, was on August 23, 1999. Since then, the
United States Mint has identified portions of the regulations in need
of revision to update redemption rates and procedures, and to enhance
the integrity of the acceptance and processing of bent and partial
United States coins.
The first category of proposed revisions would update and improve
the redemption process of bent and partial coins to enhance security
and ensure the integrity of United States coinage. These revisions were
not previously proposed. The revisions would establish procedures for
certifying participants based on submission amounts and frequency,
sampling submissions to authenticate material, conducting site visits
for certain participants, and requiring information on how the
submission came to be bent or partial. The revisions will also inform
submitters of required banking information. Lastly, the revisions would
provide the United States Mint discretion to cease processing
submissions that appear to be part of an illegal scheme, or contain
material that is not identifiable as bent or partial United States
coinage.
The second category of proposed revisions, previously proposed in
79 FR 41468, July 16, 2014, relates to the redemption rates for
uncurrent coins and bent and partial coins that have been withdrawn
from circulation. For uncurrent coins, the revision would clarify the
procedure for redemption by instructing the public to deposit the
uncurrent coins with a financial institution that will accept them, or
with a depository institution that has a direct relationship with a
Federal Reserve Bank. The revision would make clear that a Federal
Reserve Bank will redeem uncurrent coins based on the policies
described in the Federal Reserve's Operating Circular 2.
For bent or partial coins, the proposed revision would update the
redemption rates of certain coins to reflect the current values and
compositions of coins being redeemed. For example, in the existing
regulation, the redemption rate for one-cent coins is $1.4585 per
pound; this redemption rate was derived from the weight of brass one-
cent coins (3.11 grams or 0.1097 ounces each), which the United States
Mint has not minted and issued since 1982. In 1983, the United States
Mint began minting and issuing only copper-plated zinc one-cent coins,
which weigh 2.50 grams or 0.0882 ounces each. Due to the weight
difference, a pound (the minimum weight for redemption) of copper-
plated zinc one-cent coins contains a higher quantity of coins than a
pound of brass one-cent coins. The proposed revisions would make the
redemption rate $1.8100 for a pound consisting solely of copper-plated
zinc one-cent coins. For brass one-cent coins, or a mix of both brass
and copper-plated zinc one-cent coins, the lower redemption rate of
$1.4585 will apply. A similar update would be made to the redemption
rate for $1 coins.
The third category of proposed revisions, also previously proposed
in 79 FR 41468, July 16, 2014, would clarify that the United States
Mint will not accept fused coins. The United States Mint will also not
accept mixed coins (coins of several alloy categories presented
together) for redemption, with the exception of bent or partial one-
cent coins and $1 coins that are presented in mixed years.
[[Page 43731]]
The fourth category of proposed revisions puts the public on notice
that the Director of the United States Mint may provide information
pertaining to any bent or partial coin submission to law enforcement
officials or other third parties for purposes of investigating related
criminal activity or for purposes of seeking civil judgment. The
revisions would also notify potential participants that they may be
held criminally and/or civilly liable, fined, and/or imprisoned for
fraudulent submissions.
II. Public Participation
The United States Mint previously proposed updates to redemption
rates and procedures in 79 FR 41468, July 16, 2014, and requested
comments. The United States Mint received one comment, but it was not
responsive to the proposed updates. A final rule was not published.
In 81 FR 75922, Nov. 1, 2016, the United States Mint issued a
request for public comment on new ways to enhance the integrity of the
acceptance and processing of bent and partial coins. Seventeen comments
were received and reviewed. The majority of comments were submitted by
individuals or entities that previously exchanged bent or partial coins
with the United States Mint.
In general, most comments expressed support for requiring
participant certification, particularly for participants submitting
large quantities of bent or partial coins. Many comments expressed
concern with the cost and feasibility of coinage material
authentication but supported sampling or spot testing by the United
States Mint.
Many comments supported the suggestion of requiring chain of
custody information regarding the bent or partial coin submissions.
Comments from stakeholders in the recycling industry, however,
discussed the difficulty they face in tracing coins recovered by auto
and appliance shredding, and therefore recommended that recyclers be
considered the point of origin. Multiple comments noted the importance
of documenting the chain of custody of coins that had circulated
outside of the United States.
The suggestion of annual limitations on submissions was largely
disfavored by those who submitted comments. Many comments described a
backlog of bent or partial coins from the suspension of the exchange
program and a lack of alternative forums to redeem such coins.
III. Procedural Analysis
Regulatory Planning and Review
The Office of Management and Budget has determined that this
proposed rule does not constitute a ``significant regulatory action''
under Executive Order 12866 or Executive Order 13771.
Regulatory Flexibility Act Analysis
It is hereby certified that the proposed revisions will not have a
significant economic impact on a substantial number of small entities.
Accordingly, a regulatory flexibility analysis under the Regulatory
Flexibility Act, 5 U.S.C. 601 et seq., is not required. First, the
regulations do not directly regulate any entities. The redemption of
uncurrent, bent, or partial coins is a discretionary service offered to
the public; participation is voluntary. Second, many of the coins
presented for redemption in the past were submitted by individuals
transacting with the United States Mint in their own names. The number
of entities tendering significant quantities of coins for redemption is
small. Even if each such individual or entity qualified as a ``small
entity'' within the meaning of 5 U.S.C. 604(a), the United States Mint
does not believe that the proposed revisions are likely to have a
significant economic impact. The revisions do not change or limit the
scope of what may be submitted for redemption or who may submit them.
The revisions may require additional information from participants to
deter potential fraud and abuse, but the added administrative costs for
participants are expected to be minimal.
IV. Request for Comment
Before the proposed revisions to the Treasury Regulations at 31 CFR
part 100, subpart C, are adopted as final regulations, the United
States Mint will consider any comments that are submitted to the bureau
as prescribed in this preamble under the ``Dates'' and ``Addresses''
headings. The United States Mint and the Department of the Treasury
request comments on all aspects of the proposed revisions.
List of Subjects in 31 CFR Part 100
Coins.
For the reasons set forth in the preamble, the United States Mint
proposes to revise 31 CFR part 100, subpart C as follows:
PART 100--EXCHANGE OF PAPER CURRENCY AND COIN
Subpart C--Request for Examination of Coin for Possible Redemption
Sec.
100.10 Request for examination of uncurrent coin for possible
redemption.
100.11 Request for examination of bent or partial coin for possible
redemption.
100.12 Exchange of fused or mixed coin.
100.13 Notices.
PART 100--EXCHANGE OF PAPER CURRENCY AND COIN
Subpart C--Request for Examination of Coin for Possible Redemption
Sec. 100.10 Request for examination of uncurrent coin for possible
redemption.
(a) Definition. Uncurrent coins are whole U.S. coins which are
merely worn or reduced in weight by natural abrasion yet are readily
and clearly recognizable as to genuineness and denomination and which
are machine countable.
(b) Redemption process. The United States Mint will not accept
uncurrent coins for redemption. Members of the public wishing to redeem
lawfully held uncurrent coins must deposit the uncurrent coins with a
bank or other financial institution that will accept them, or with a
depository institution that has established a direct customer
relationship with a Federal Reserve Bank. A Federal Reserve Bank will
redeem uncurrent coins, based on the policies described in the Federal
Reserve's Operating Circular 2.
(c) Criteria for acceptance. Depository institutions that redeem
uncurrent coins must sort the coins by denomination into packages in
accordance with the Federal Reserve's Operating Circular 2. The Federal
Reserve Banks have the right to reject any shipment containing objects
that are not U.S. coins or any contaminant that could render the
uncurrent coins unsuitable for coinage metal.
(d) Redemption sites. The Federal Reserve Banks and branches listed
in Sec. 100.17 are the only authorized redemption sites at which a
depository institution that has established a direct customer
relationship with a Federal Reserve Bank may redeem uncurrent coins.
Sec. 100.11 Request for examination of bent or partial coin for
possible redemption.
(a) General. Lawfully held bent or partial coins of the United
States may be submitted to the United States Mint for examination in
accordance with the provisions in this subpart. Any submission under
this subpart shall be deemed an acceptance of all provisions of this
subpart.
(b) Definitions. (1) Bent coins are U.S. coins which are bent or
deformed so as to preclude normal machine counting
[[Page 43732]]
but which are readily and clearly identifiable as to genuineness and
denomination.
(2) Partial coins are U.S. coins which are not whole; partial coins
must be readily and clearly identifiable as to genuineness and
denomination.
(3) Participants are individuals or businesses that submit coins
through the redemption process.
(c) Redemption process.
(1) Depending on submission amount and frequency, participants may
be subject to a certification process by the United States Mint. The
established annual weight threshold and details about the participant
certification process will be published on the United States Mint's Web
site. If certification is required, it must be done prior to
submission.
(2) All submissions for review shall include an estimate of the
value of the coins and an explanation of how the submission came to be
bent or partial. The submission should also contain the bank account
number and routing number for a checking or savings account at a bank
or other financial institution (such as a mutual fund, brokerage firm,
or credit union) in the United States.
(3) Participants may be required to provide documentation for how
the participant came into custody of the bent or partial coins.
(4) The United States Mint reserves the right to test samples from
any submission to authenticate the material. The size of the sample
will be limited to the amount necessary for authentication. Testing may
result in partial or complete destruction of the sample.
(5) The United States Mint reserves the right to conduct site
visits for participants over a certain volume threshold to verify
information provided to the United States Mint.
(6) No redemption will be made when:
(i) A submission, or any portion of a submission, demonstrates a
pattern of intentional mutilation or an attempt to defraud the United
States;
(ii) A submission appears to be part of, or intended to further,
any criminal activity;
(iii) A submission contains a material misrepresentation of facts;
(iv) Material presented is not identifiable as United States coins.
In such instances, the participant will be notified to retrieve the
entire submission, at the participant's sole expense, within 30 days.
If the submission is not retrieved in a timely manner, the entire
submission will be treated as voluntarily abandoned property, pursuant
to 41 CFR 102-41.80, and will be retained or disposed of by the United
States Mint;
(v) A submission contains any contaminant that could render the
coins unsuitable for coinage metal. In such instances, the participant
will be notified to retrieve the entire submission, at the
participant's sole expense, within 30 days. If the submission is not
retrieved in a timely manner, the entire submission will be treated as
voluntarily abandoned property, pursuant to 41 CFR 102-41.80, and will
be retained or disposed of by the United States Mint; or
(vi) A submission contains more than a nominal amount of uncurrent
coins. In such instances, the participant may be notified to retrieve
the entire submission, at the participant's sole expense, within 30
days. If the submission is not retrieved in a timely manner, the entire
submission will be treated as voluntarily abandoned property, pursuant
to 41 CFR 102-41.80, and will be retained or disposed of by the United
States Mint.
(7) The Director of the United States Mint, or designee, shall have
final authority with respect to all aspects of redemptions of bent or
partial coin submissions.
(d) Redemption rates.
(1) Generally. Participants shall separate bent or partial coins by
denomination in lots of at least one pound for each denomination
category. The United States Mint will redeem bent or partial coins on
the basis of their weight and denomination at the following rates:
(i) One-Cent Coins: $1.4585 per pound.
(ii) 5-Cent Coins: $4.5359 per pound.
(iii) Dime, Quarter-Dollar, and Half-Dollar Coins: $20.00 per
pound.
(iv) $1 Coins: $20.00 per pound.
(2) Exceptions. (i) The United States Mint will redeem one-cent
coins inscribed with a year after 1982 at the rate set forth at
subparagraph (1)(i) of this subsection unless such one-cent coins are
presented unmixed from one-cent coins inscribed with a year before
1983. The United States Mint will redeem unmixed one-cent coins
inscribed with a year after 1982 at a rate of $1.8100 per pound.
(ii) The United States Mint will redeem $1 coins inscribed with a
year after 1978 at the rate set forth at subparagraph (1)(iv) of this
subsection unless such $1 coins are presented unmixed from $1 coins
inscribed with a year before 1979. The United States Mint will redeem
unmixed $1 coins inscribed with a year after 1978 at a rate of $56.00
per pound.
(e) Redemption sites. Coins are shipped at the sender's risk of
loss and expense.
(1) Bent and partial coins submitted in quantities less than or
equal to a threshold established annually will be redeemed only at the
United States Mint at Philadelphia, P.O. Box 400, Philadelphia, PA
19105.
(2) Bent and partial coins submitted in quantities greater than a
threshold established annually should be scheduled with the United
States Mint to be sent directly to the authorized recycler(s) of the
United States Mint.
Sec. 100.12 Exchange of fused or mixed coin.
(a) Definitions. (1) Fused coins are U.S. coins which are melted to
the extent that they are bonded together.
(2) Mixed coins are U.S. coins of several alloy categories which
are presented together, but are readily and clearly identifiable as
U.S. coins.
(b) The United States Mint will not accept fused coins for
redemption. The United States Mint will not accept mixed coins for
redemption, except as provided for in Sec. 100.11(d)(2).
Sec. 100.13 Notices.
(a) Additional information and procedures about the United States
Mint's redemption of bent or partial coins can be found on the United
States Mint's Web site.
(b) Criminal penalties connected with the defacement or mutilation
of U.S. coins are provided in 18 U.S.C. 331.
(c) The Director of the United States Mint may provide information
pertaining to any bent or partial coin submissions to law enforcement
officials or other third parties for purposes of investigating related
criminal activity or for purposes of seeking a civil judgment.
(d) Whoever intentionally files a false claim seeking reimbursement
for uncurrent, bent or partial coins may be held criminally liable
under a number of statutes including 18 U.S.C. 287 and 18 U.S.C. 1341
and may be held civilly liable under 31 U.S.C. 3729, et seq.
Dated: September 13, 2017.
Jean Gentry,
Chief Counsel, United States Mint.
[FR Doc. 2017-19885 Filed 9-18-17; 8:45 am]
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