[Federal Register Volume 64, Number 141 (Friday, July 23, 1999)]
[Rules and Regulations]
[Pages 39919-39920]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-18849]
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DEPARTMENT OF THE TREASURY
United States Mint
31 CFR Part 100
RIN 1525-ZA00
Exchange of Coin
AGENCY: United States Mint, Treasury.
ACTION: Final rule.
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SUMMARY: In furtherance of the U.S. Mint's efforts to improve the
environment, reduce energy consumption and enhance workplace safety and
efficiency, the Mint wishes to discontinue melting and instead employ
mechanical means to destroy mutilated coins. These mechanical means
cannot be used to process fused or mixed coins, which represent a very
small percentage of the coins redeemed annually by the Mint.
Accordingly, by this amendment the Mint will also discontinue accepting
fused or mixed coins for redemption, and require that all bent or
partial coins submitted for redemption be separated by denomination in
order to be acceptable.
EFFECTIVE DATE: August 23, 1999.
FOR FURTHER INFORMATION CONTACT: (Legal) Gwen Mattleman, Attorney-
Advisor (202) 874-4043, or Kenneth Gubin, Chief Counsel (202) 874-5953;
(Technical) Andrew Cosgarea, Associate Director, Head, Circulating
Coinage Business Unit (202) 874-6100.
SUPPLEMENTARY INFORMATION:
Background
Part 100, Subpart C of Treasury Regulations 31 CFR, promulgated
under 31 U.S.C. 5120, provides for the exchange of bent, partial, fused
and mixed coins. The Mint has identified and is actively pursuing
initiatives to improve the environment, reduce energy consumption and
enhance efficiency and workplace safety. Melting coins submitted for
redemption by the Mint's current heat induction procedures is not
energy efficient and adds to the Mint's annual electrical expenses. It
is also a physically challenging process for the Mint's employees. For
these reasons, in 64 FR 4063, January 27, 1999, the Mint published a
proposed rule notifying the public of its intention to discontinue
melting and begin using mechanical means (such as a hammer mill or
rolling mill) to destroy mutilated coins. As the mechanical destruction
process requires that coins be separated by alloy, these mechanical
methods cannot be used to process fused coins or unsorted (mixed) coin
lots. Mutilated coins delivered in these lots of mixed alloy categories
often are in a condition which precludes machine sorting, and
redemption of mixed coins can be labor-intensive and inefficient. Fused
and mixed coins represent a very small component of the United States
Mint's annual coin redemptions. Therefore, the Mint's proposed rule
published in 64 FR 4063, January 27, 1999 also notified the public of
the Mint's intention to amend Part 100 of 31 CFR to discontinue
acceptance of fused and mixed coins for redemption and require that all
bent or partial coins submitted for redemption be separated by
denomination. Comments were solicited through the January 27, 1999
publication of the proposed rule in the Federal Register (which
included telephone numbers of legal and technical staff and a dedicated
email address). No comments from the public were received. For the
foregoing reasons, effective 30 days from the date of publication of
this final rule, the Mint amends Part 100 of 31 CFR to discontinue
acceptance of fused and mixed coins for redemption and to require that
all bent or partial coins submitted for redemption be separated by
denomination.
Special Analyses
This regulation is not a significant regulatory action for purposes
of Executive Order 12866. The Mint has paid out less than $8 million in
total annual mutilated coin redemptions for each of 1996, 1997 and the
seven-month period ending July 31, 1998. For each such period, fused
and mixed coins as a group constitute less than 1% of total coins
redeemed, and approximately 1% or less of the total lots redeemed.
Fused and mixed coins are currently redeemed at metal rates lower than
the rates paid for sorted coins. For these reasons, the United States
Mint does not believe that the regulation will have an annual effect on
the economy of $100 million or more or materially adversely affect any
sector of the economy, productivity,
[[Page 39920]]
competition, jobs, the environment, public health, or State, local, or
tribal governments or communities. The Mint does not anticipate that
the rule will result in inconsistency, interfere with another agency's
actions, materially alter the budgetary impact of entitlements, grants,
user fees, or loan programs or the rights and obligations of recipients
thereof, or raise novel legal or policy issues arising out of legal
mandates, the President's priorities, or the principles set forth in
Executive Order 12866. It is hereby certified that this regulation will
not have a significant economic impact on a significant number of small
entities. Accordingly, a regulatory flexibility analysis is not
required. Lots of fused and mixed coins recorded together as a group
constituted approximately 1% or less of the total coin lots redeemed
for each of calendar 1996, 1997 and the period ending July 31, 1998,
amounting to 23, 19 and 13 lots, respectively, of fused and mixed
coins. Although the Mint does not maintain records which consistently
indicate the business or personal nature of the transactions conducted
by individuals or entities tendering coins for redemption, the majority
of these lots were submitted by individuals transacting with the Mint
in their own name. Even if each such individual were a ``small entity''
within the meaning of 5 U.S.C. 604(a), the Mint does not believe that
this quantity of lots indicates that a significant number of small
entities will be significantly impacted if the Mint were to require
sorting of coins previously accepted as mixed and discontinue accepting
fused coins.
List of Subjects in 31 CFR Part 100
Currency, Gold.
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
Subpart C--Exchange Of Coin
1. The authority citation for Part 100 is revised to read as
follows:
Authority: 31 U.S.C. 321.
2. Revise Sec. 100.11(b) to read as follows:
Sec. 100.11 Exchange of bent and partial coins.
* * * * *
(b) Redemption basis. Bent and partial coins shall be presented
separately by denomination category in lots of at least one pound for
each category. Bent and partial coins shall be redeemed on the basis of
their weight and denomination category rates (which is the weight
equivalent of face value). If not presented separately by denomination
category, bent and partial coins will not be accepted for redemption.
Denomination categories and rates are Cents, @ $1.4585 per pound;
Nickels,
@ $4.5359 per pound; Dimes, Quarters, Halves, and Eisenhower Dollars @
$20.00 per pound; and Anthony Dollars @ $56.00 per pound. Copper plated
zinc cents shall be redeemed at the face value equivalent of copper one
cent coins.
* * * * *
3. Revise Sec. 100.12(b) to read as follows:
Sec. 100.12 Exchange of fused and mixed coins.
* * * * *
(b) The United States Mint will not accept fused or mixed coins for
redemption.
Philip N. Diehl,
Director.
[FR Doc. 99-18849 Filed 7-22-99; 8:45 am]
BILLING CODE 4810-37-P
