Exchange of Coin, 60309-60312 [2017-27026]
Download as PDF
<![CDATA[
Federal Register / Vol. 82, No. 243 / Wednesday, December 20, 2017 / Rules and Regulations
60309
TABLE I–18—SELECTION OF RETIREMENT RATE CATEGORY
[For plans with valuation dates after December 31, 2017, and before January 1, 2019]
Participant’s Retirement Rate Category is—
Low 1 if
monthly
benefit at
URA is
less than—
If participant reaches URA in year—
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
.................................................................................................................
.................................................................................................................
.................................................................................................................
.................................................................................................................
.................................................................................................................
.................................................................................................................
.................................................................................................................
.................................................................................................................
.................................................................................................................
or later ....................................................................................................
Medium 2 if monthly
benefit at URA is—
From—
647
662
678
693
709
725
742
759
777
794
To—
647
662
678
693
709
725
742
759
777
794
2,734
2,797
2,862
2,927
2,995
3,064
3,134
3,206
3,280
3,355
High 3 if
monthly
benefit at
URA is
greater than—
2,734
2,797
2,862
2,927
2,995
3,064
3,134
3,206
3,280
3,355
1 Table
II–A.
II–B.
3 Table II–C.
2 Table
*
*
*
*
*
Issued in Washington, DC, by:
Daniel S. Liebman,
Acting Assistant General Counsel for
Regulatory Affairs, Pension Benefit Guaranty
Corporation.
[FR Doc. 2017–27361 Filed 12–19–17; 8:45 am]
BILLING CODE 7709–02–P
DEPARTMENT OF THE TREASURY
United States Mint
31 CFR Part 100
Exchange of Coin
United States Mint, Treasury.
Final rule.
AGENCY:
ACTION:
This final rule revises
Treasury regulations relating to the
exchange of uncurrent, bent, partial,
fused, and mixed coins, and to update
the regulations to comply with the
requirement for orderly codification.
The revisions include updates to
redemption rates and procedures that
will enhance the integrity of the
acceptance and processing of bent and
partial United States coins.
DATES: Effective Date: January 19, 2018.
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.
ethrower on DSK3G9T082PROD with RULES
SUMMARY:
SUPPLEMENTARY INFORMATION:
I. Background
The Treasury Regulations appearing
at 31 CFR part 100, subpart C, are
promulgated under 31 U.S.C. 5120, and
VerDate Sep<11>2014
16:19 Dec 19, 2017
Jkt 244001
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
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 United States Mint
was also informed that the current
structure of part 100 does not meet the
orderly codification requirements of 1
CFR 8.2, 21.8, and 21.9.
The first category of revisions updates
and improves the redemption process of
bent and partial coins to enhance
security and ensure the integrity of
United States coinage. The revisions
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 also inform
submitters of required banking
information. Lastly, the revisions
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 revisions
relates to the redemption rates for
uncurrent coins and bent and partial
coins that have been withdrawn from
circulation. For uncurrent coins, the
revisions clarify the procedure for
redemption by instructing the public to
deposit the uncurrent coins with a
financial institution that will accept
PO 00000
Frm 00029
Fmt 4700
Sfmt 4700
them, or with a depository institution
that has a direct relationship with a
Federal Reserve Bank. The revisions
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 revisions
update the redemption rates of certain
coins to reflect the current values and
compositions of coins being redeemed.
For example, in the prior regulation, the
redemption rate for one-cent coins was
$1.4585 per pound; this redemption rate
was derived from the weight of bronze
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 copperplated 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 bronze one-cent coins. The
revisions make the redemption rate
$1.8100 for a pound consisting solely of
copper-plated zinc one-cent coins. For
bronze one-cent coins, or a mix of both
bronze and copper-plated zinc one-cent
coins, the lower redemption rate of
$1.4585 will apply. A similar update is
made to the redemption rate for $1
coins.
The third category of revisions
clarifies 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.
E:\FR\FM\20DER1.SGM
20DER1
60310
Federal Register / Vol. 82, No. 243 / Wednesday, December 20, 2017 / Rules and Regulations
The fourth category of 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
also notify potential participants that
they may be held criminally and/or
civilly liable, fined, and/or imprisoned
for fraudulent submissions.
Finally, the United States Mint
clarifies which of the various offices and
bureaus within the Department of the
Treasury has authorization to update the
different subparts within part 100.
ethrower on DSK3G9T082PROD with RULES
II. Public Participation
In 82 FR 43730, Sep. 19, 2017, the
United States Mint issued a notice of
proposed rulemaking (NPRM) to revise
redemption rates and procedures
relating to the exchange of uncurrent,
bent, partial, fused, and mixed coins,
and requested comments on the
proposed revisions. The United States
Mint received fourteen comments. The
majority of comments were from
individuals and businesses who
previously participated in the exchange
program. One comment was from a
trade association representing the
private, for-profit recycling industry.
Most comments expressed support for
the revisions. Many of the comments
raised questions about details of the
exchange program that specifically
relate to operating procedures. Those
instructions and other details relating to
the exchange of bent and partial coins
will be provided to the public on the
United States Mint’s website.
Instructions and other details related to
the exchange of uncurrent coins will be
described in the Federal Reserve’s
Operating Circular 2. If a comment is
not addressed in the summary below, it
is because the comment was more
specific to those operating procedures
and details, or the comment was not
responsive to the proposed revisions.
Certification Process
The majority of comments supported
a participant certification process. A few
comments expressed confusion or
dissatisfaction with certification
occurring prior to submission of coins.
One comment said it would be logically
inconsistent to require certification
prior to submission because the
thresholds related to certification are
related to the submission. The United
States Mint does not believe it is
inconsistent to require certification
prior to submission. Participants who
will exceed or plan to exceed the annual
VerDate Sep<11>2014
16:19 Dec 19, 2017
Jkt 244001
weight threshold will be required to be
certified by the United States Mint prior
to submission. The annual weight
threshold, along with other certification
instructions, will be provided on the
United States Mint’s website.
One comment asked whether a
participant would be required to go
through the certification process prior to
each submission. The answer is no. A
recertification will be required every
three years for those participants whose
recurring submissions exceed the
annual submission threshold, unless the
United States Mint decides in its
discretion that recertification is needed
earlier than the three year period.
Details and instructions on the
certification process will be available on
the United States Mint’s website.
Foreign Participants
Two comments expressed concern
with the regulations applying equally to
domestic and foreign recycling
companies. Foreign individuals and
businesses will be given the same
opportunity to participate in the
exchange program. The requirement to
provide payment information for a bank
or other financial institution in the
United States applies equally to
domestic and foreign participants.
Request To Clarify Denomination
Categories
One comment requested clarity on
how to separate bent or partial coins for
redemption. Specifically, the comment
cited the requirement of the prior
regulation to separate bent or partial
coins into the following denomination
categories of at least one pound: Onecent coins; 5-cent coins; dime, quarterdollar, and half-dollar coins; and $1
coins. The United States Mint is only
revising the redemption rates, not the
denomination categories themselves.
Paragraph (d) is revised to clarify that
lots of at least one pound must still be
separated into the denomination
categories of one-cent coins; 5-cent
coins; dime, quarter-dollar, and halfdollar coins; and $1 coins.
Conclusion
After reviewing and considering all
timely comments received in response
to the NPRM, the United States Mint
decided to move forward with the
proposed regulatory text, with a minor
editorial change to clarify the
denomination categories. The United
States Mint has determined that this
minor editorial change is consistent
with the intent that was proposed in the
NPRM and does not add any additional
burden upon the public than was
already proposed in the NPRM.
PO 00000
Frm 00030
Fmt 4700
Sfmt 4700
III. Procedural Analysis
Regulatory Planning and Review
The Office of Management and Budget
determined that this 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 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 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.
List of Subjects in 31 CFR Part 100
Coins.
Words of Issuance
For the reasons set forth in the
preamble, the United States Mint
amends 31 CFR part 100 as follows:
PART 100—EXCHANGE OF PAPER
CURRENCY AND COIN
1. The authority citation for part 100
continues to read as follows:
■
Authority: 31 U.S.C. 321.
2. Amend § 100.2 by designating the
undesignated paragraph as paragraph (a)
and adding paragraph (b) to read as
follows:
■
§ 100.2 Scope of regulations; transactions
effected through Federal Reserve banks
and branches; distribution of coin and
currencies.
*
*
*
*
*
(b) The Department of the Treasury
has authorized amendments to this part
by the following bureaus and offices:
E:\FR\FM\20DER1.SGM
20DER1
Federal Register / Vol. 82, No. 243 / Wednesday, December 20, 2017 / Rules and Regulations
(1) This section—Office of the
Secretary.
(2) Subpart A—Office of the Secretary.
(3) Subpart B—Bureau of Engraving
and Printing.
(4) Subpart C—United States Mint.
(5) Subpart D—Office of the Secretary.
■ 3. Revise subpart C to read as follows:
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.
§ 100.10 Request for examination of
uncurrent coin for possible redemption.
ethrower on DSK3G9T082PROD with RULES
(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
VerDate Sep<11>2014
16:19 Dec 19, 2017
Jkt 244001
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
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
website. 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
PO 00000
Frm 00031
Fmt 4700
Sfmt 4700
60311
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 the denomination
categories listed below 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 paragraph (d)(1)(i) of
this section 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
paragraph (d)(1)(iv) of this section
unless such $1 coins are presented
E:\FR\FM\20DER1.SGM
20DER1
60312
Federal Register / Vol. 82, No. 243 / Wednesday, December 20, 2017 / Rules and Regulations
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.
§ 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) Fused and mixed coins. 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.
ethrower on DSK3G9T082PROD with RULES
(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 website.
(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: December 11, 2017.
Jean Gentry,
Chief Counsel, United States Mint.
[FR Doc. 2017–27026 Filed 12–19–17; 8:45 am]
BILLING CODE 4810–37–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Parts 100, 117, 147, and 165
[USCG–2017–1007]
2016 Quarterly Listings; Safety Zones,
Security Zones, Special Local
Regulations, Drawbridge Operation
Regulations and Regulated Navigation
Areas
Coast Guard, DHS.
Notification of expired
temporary rules issued.
AGENCY:
ACTION:
This document provides
notice of substantive rules issued by the
Coast Guard that were made temporarily
effective but expired before they could
be published in the Federal Register.
This document lists temporary safety
zones, security zones, special local
regulations, drawbridge operation
regulations and regulated navigation
areas, all of limited duration and for
which timely publication in the Federal
Register was not possible.
DATES: This document lists temporary
Coast Guard rules that became effective,
primarily between July 2016 and
September 2016, unless otherwise
indicated, and were terminated before
they could be published in the Federal
Register.
ADDRESSES: Temporary rules listed in
this document may be viewed online,
under their respective docket numbers,
using the Federal eRulemaking Portal at
https://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: For
questions on this notice contact Yeoman
First Class David Hager, Office of
Regulations and Administrative Law,
telephone (202) 372–3862.
SUPPLEMENTARY INFORMATION: Coast
Guard District Commanders and
Captains of the Port (COTP) must be
immediately responsive to the safety
and security needs within their
jurisdiction; therefore, District
Commanders and COTPs have been
delegated the authority to issue certain
local regulations. Safety zones may be
established for safety or environmental
purposes. A safety zone may be
stationary and described by fixed limits
or it may be described as a zone around
a vessel in motion. Security zones limit
access to prevent injury or damage to
vessels, ports, or waterfront facilities.
Special local regulations are issued to
SUMMARY:
enhance the safety of participants and
spectators at regattas and other marine
events. Drawbridge operation
regulations authorize changes to
drawbridge schedules to accommodate
bridge repairs, seasonal vessel traffic,
and local public events. Regulated
Navigation Areas are water areas within
a defined boundary for which
regulations for vessels navigating within
the area have been established by the
regional Coast Guard District
Commander.
Timely publication of these rules in
the Federal Register may be precluded
when a rule responds to an emergency,
or when an event occurs without
sufficient advance notice. The affected
public is, however, often informed of
these rules through Local Notices to
Mariners, press releases, and other
means. Moreover, actual notification is
provided by Coast Guard patrol vessels
enforcing the restrictions imposed by
the rule. Because Federal Register
publication was not possible before the
end of the effective period, mariners
were personally notified of the contents
of these safety zones, security zones,
special local regulations, regulated
navigation areas or drawbridge
operation regulations by Coast Guard
officials on-scene prior to any
enforcement action. However, the Coast
Guard, by law, must publish in the
Federal Register notice of substantive
rules adopted. To meet this obligation
without imposing undue expense on the
public, the Coast Guard periodically
publishes a list of these temporary
safety zones, security zones, special
local regulations, regulated navigation
areas and drawbridge operation
regulations. Permanent rules are not
included in this list because they are
published in their entirety in the
Federal Register. Temporary rules are
also published in their entirety if
sufficient time is available to do so
before they are placed in effect or
terminated.
The following unpublished rules were
placed in effect temporarily during the
period between May 2013–October 2016
unless otherwise indicated. To view
copies of these rules, visit
www.regulations.gov and search by the
docket number indicated in the list
below.
Docket No.
Type
Location
USCG–2016–0465 ..................................
Security Zones ........................................
Rhode Island ...........................................
VerDate Sep<11>2014
16:19 Dec 19, 2017
Jkt 244001
PO 00000
Frm 00032
Fmt 4700
Sfmt 4700
E:\FR\FM\20DER1.SGM
20DER1
Effective date
5/27/2016
]]>Agencies
[Federal Register Volume 82, Number 243 (Wednesday, December 20, 2017)]
[Rules and Regulations]
[Pages 60309-60312]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-27026]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
United States Mint
31 CFR Part 100
Exchange of Coin
AGENCY: United States Mint, Treasury.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This final rule revises Treasury regulations relating to the
exchange of uncurrent, bent, partial, fused, and mixed coins, and to
update the regulations to comply with the requirement for orderly
codification. The revisions include updates to redemption rates and
procedures that will enhance the integrity of the acceptance and
processing of bent and partial United States coins.
DATES: Effective Date: January 19, 2018.
FOR FURTHER INFORMATION CONTACT: Sheila Barnett, Legal Counsel; Office
of the Chief Counsel; United States Mint; at (202) 354-7624 or
[email protected].
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 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 United States Mint was also informed that the current
structure of part 100 does not meet the orderly codification
requirements of 1 CFR 8.2, 21.8, and 21.9.
The first category of revisions updates and improves the redemption
process of bent and partial coins to enhance security and ensure the
integrity of United States coinage. The revisions 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 also inform
submitters of required banking information. Lastly, the revisions
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 revisions relates to the redemption rates
for uncurrent coins and bent and partial coins that have been withdrawn
from circulation. For uncurrent coins, the revisions 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 revisions 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 revisions update the redemption
rates of certain coins to reflect the current values and compositions
of coins being redeemed. For example, in the prior regulation, the
redemption rate for one-cent coins was $1.4585 per pound; this
redemption rate was derived from the weight of bronze 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 bronze one-
cent coins. The revisions make the redemption rate $1.8100 for a pound
consisting solely of copper-plated zinc one-cent coins. For bronze one-
cent coins, or a mix of both bronze and copper-plated zinc one-cent
coins, the lower redemption rate of $1.4585 will apply. A similar
update is made to the redemption rate for $1 coins.
The third category of revisions clarifies 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 60310]]
The fourth category of 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 also
notify potential participants that they may be held criminally and/or
civilly liable, fined, and/or imprisoned for fraudulent submissions.
Finally, the United States Mint clarifies which of the various
offices and bureaus within the Department of the Treasury has
authorization to update the different subparts within part 100.
II. Public Participation
In 82 FR 43730, Sep. 19, 2017, the United States Mint issued a
notice of proposed rulemaking (NPRM) to revise redemption rates and
procedures relating to the exchange of uncurrent, bent, partial, fused,
and mixed coins, and requested comments on the proposed revisions. The
United States Mint received fourteen comments. The majority of comments
were from individuals and businesses who previously participated in the
exchange program. One comment was from a trade association representing
the private, for-profit recycling industry.
Most comments expressed support for the revisions. Many of the
comments raised questions about details of the exchange program that
specifically relate to operating procedures. Those instructions and
other details relating to the exchange of bent and partial coins will
be provided to the public on the United States Mint's website.
Instructions and other details related to the exchange of uncurrent
coins will be described in the Federal Reserve's Operating Circular 2.
If a comment is not addressed in the summary below, it is because the
comment was more specific to those operating procedures and details, or
the comment was not responsive to the proposed revisions.
Certification Process
The majority of comments supported a participant certification
process. A few comments expressed confusion or dissatisfaction with
certification occurring prior to submission of coins. One comment said
it would be logically inconsistent to require certification prior to
submission because the thresholds related to certification are related
to the submission. The United States Mint does not believe it is
inconsistent to require certification prior to submission. Participants
who will exceed or plan to exceed the annual weight threshold will be
required to be certified by the United States Mint prior to submission.
The annual weight threshold, along with other certification
instructions, will be provided on the United States Mint's website.
One comment asked whether a participant would be required to go
through the certification process prior to each submission. The answer
is no. A recertification will be required every three years for those
participants whose recurring submissions exceed the annual submission
threshold, unless the United States Mint decides in its discretion that
recertification is needed earlier than the three year period. Details
and instructions on the certification process will be available on the
United States Mint's website.
Foreign Participants
Two comments expressed concern with the regulations applying
equally to domestic and foreign recycling companies. Foreign
individuals and businesses will be given the same opportunity to
participate in the exchange program. The requirement to provide payment
information for a bank or other financial institution in the United
States applies equally to domestic and foreign participants.
Request To Clarify Denomination Categories
One comment requested clarity on how to separate bent or partial
coins for redemption. Specifically, the comment cited the requirement
of the prior regulation to separate bent or partial coins into the
following denomination categories of at least one pound: One-cent
coins; 5-cent coins; dime, quarter-dollar, and half-dollar coins; and
$1 coins. The United States Mint is only revising the redemption rates,
not the denomination categories themselves. Paragraph (d) is revised to
clarify that lots of at least one pound must still be separated into
the denomination categories of one-cent coins; 5-cent coins; dime,
quarter-dollar, and half-dollar coins; and $1 coins.
Conclusion
After reviewing and considering all timely comments received in
response to the NPRM, the United States Mint decided to move forward
with the proposed regulatory text, with a minor editorial change to
clarify the denomination categories. The United States Mint has
determined that this minor editorial change is consistent with the
intent that was proposed in the NPRM and does not add any additional
burden upon the public than was already proposed in the NPRM.
III. Procedural Analysis
Regulatory Planning and Review
The Office of Management and Budget determined that this 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 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 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.
List of Subjects in 31 CFR Part 100
Coins.
Words of Issuance
For the reasons set forth in the preamble, the United States Mint
amends 31 CFR part 100 as follows:
PART 100--EXCHANGE OF PAPER CURRENCY AND COIN
0
1. The authority citation for part 100 continues to read as follows:
Authority: 31 U.S.C. 321.
0
2. Amend Sec. 100.2 by designating the undesignated paragraph as
paragraph (a) and adding paragraph (b) to read as follows:
Sec. 100.2 Scope of regulations; transactions effected through
Federal Reserve banks and branches; distribution of coin and
currencies.
* * * * *
(b) The Department of the Treasury has authorized amendments to
this part by the following bureaus and offices:
[[Page 60311]]
(1) This section--Office of the Secretary.
(2) Subpart A--Office of the Secretary.
(3) Subpart B--Bureau of Engraving and Printing.
(4) Subpart C--United States Mint.
(5) Subpart D--Office of the Secretary.
0
3. Revise subpart C to read as follows:
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.
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 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 website. 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 the denomination categories listed below 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
paragraph (d)(1)(i) of this section 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 paragraph (d)(1)(iv) of this
section unless such $1 coins are presented
[[Page 60312]]
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) Fused and mixed coins. 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 website.
(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: December 11, 2017.
Jean Gentry,
Chief Counsel, United States Mint.
[FR Doc. 2017-27026 Filed 12-19-17; 8:45 am]
BILLING CODE 4810-37-P
