82_FR_60552 82 FR 60309 - Exchange of Coin

82 FR 60309 - Exchange of Coin

DEPARTMENT OF THE TREASURY
United States Mint

Federal Register Volume 82, Issue 243 (December 20, 2017)

Page Range60309-60312
FR Document2017-27026

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.

Federal Register, Volume 82 Issue 243 (Wednesday, December 20, 2017)
[Federal Register Volume 82, Number 243 (Wednesday, December 20, 2017)]
[Rules and Regulations]
[Pages 60309-60312]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-27026]


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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



                                                              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            Medium 2 if monthly
                                                                                                                                                                                                                               High 3 if
                                                                          If participant reaches URA in year—                                                             monthly             benefit at URA is—               monthly
                                                                                                                                                                         benefit at                                           benefit at
                                                                                                                                                                          URA is                                               URA is
                                                                                                                                                                        less than—          From—            To—            greater than—

                                             2019   .................................................................................................................             647               647             2,734           2,734
                                             2020   .................................................................................................................             662               662             2,797           2,797
                                             2021   .................................................................................................................             678               678             2,862           2,862
                                             2022   .................................................................................................................             693               693             2,927           2,927
                                             2023   .................................................................................................................             709               709             2,995           2,995
                                             2024   .................................................................................................................             725               725             3,064           3,064
                                             2025   .................................................................................................................             742               742             3,134           3,134
                                             2026   .................................................................................................................             759               759             3,206           3,206
                                             2027   .................................................................................................................             777               777             3,280           3,280
                                             2028   or later ....................................................................................................                 794               794             3,355           3,355
                                                 1 Table II–A.
                                                 2 Table II–B.
                                                 3 Table II–C.




                                             *       *         *         *         *                                     relate to the exchange of uncurrent,                              them, or with a depository institution
                                               Issued in Washington, DC, by:                                             bent, partial, fused, and mixed coins.                            that has a direct relationship with a
                                             Daniel S. Liebman,
                                                                                                                         The last amendment to 31 CFR part 100,                            Federal Reserve Bank. The revisions
                                                                                                                         subpart C, was on August 23, 1999.                                make clear that a Federal Reserve Bank
                                             Acting Assistant General Counsel for
                                             Regulatory Affairs, Pension Benefit Guaranty
                                                                                                                         Since then, the United States Mint                                will redeem uncurrent coins based on
                                             Corporation.                                                                identified portions of the regulations in                         the policies described in the Federal
                                                                                                                         need of revision to update redemption                             Reserve’s Operating Circular 2.
                                             [FR Doc. 2017–27361 Filed 12–19–17; 8:45 am]
                                                                                                                         rates and procedures, and to enhance                                For bent or partial coins, the revisions
                                             BILLING CODE 7709–02–P
                                                                                                                         the integrity of the acceptance and                               update the redemption rates of certain
                                                                                                                         processing of bent and partial United                             coins to reflect the current values and
                                                                                                                         States coins. The United States Mint                              compositions of coins being redeemed.
                                             DEPARTMENT OF THE TREASURY                                                  was also informed that the current                                For example, in the prior regulation, the
                                                                                                                         structure of part 100 does not meet the                           redemption rate for one-cent coins was
                                             United States Mint                                                          orderly codification requirements of 1                            $1.4585 per pound; this redemption rate
                                                                                                                         CFR 8.2, 21.8, and 21.9.                                          was derived from the weight of bronze
                                             31 CFR Part 100                                                                The first category of revisions updates                        one-cent coins (3.11 grams or 0.1097
                                                                                                                         and improves the redemption process of                            ounces each), which the United States
                                             Exchange of Coin                                                            bent and partial coins to enhance                                 Mint has not minted and issued since
                                             AGENCY:        United States Mint, Treasury.                                security and ensure the integrity of                              1982. In 1983, the United States Mint
                                             ACTION:       Final rule.                                                   United States coinage. The revisions                              began minting and issuing only copper-
                                                                                                                         establish procedures for certifying                               plated zinc one-cent coins, which weigh
                                             SUMMARY:   This final rule revises                                          participants based on submission                                  2.50 grams or 0.0882 ounces each. Due
                                             Treasury regulations relating to the                                        amounts and frequency, sampling                                   to the weight difference, a pound (the
                                             exchange of uncurrent, bent, partial,                                       submissions to authenticate material,                             minimum weight for redemption) of
                                             fused, and mixed coins, and to update                                       conducting site visits for certain                                copper-plated zinc one-cent coins
                                             the regulations to comply with the                                          participants, and requiring information                           contains a higher quantity of coins than
                                             requirement for orderly codification.                                       on how the submission came to be bent                             a pound of bronze one-cent coins. The
                                             The revisions include updates to                                            or partial. The revisions also inform                             revisions make the redemption rate
                                             redemption rates and procedures that                                        submitters of required banking                                    $1.8100 for a pound consisting solely of
                                             will enhance the integrity of the                                           information. Lastly, the revisions                                copper-plated zinc one-cent coins. For
                                             acceptance and processing of bent and                                       provide the United States Mint                                    bronze one-cent coins, or a mix of both
                                             partial United States coins.                                                discretion to cease processing                                    bronze and copper-plated zinc one-cent
                                             DATES: Effective Date: January 19, 2018.
                                                                                                                         submissions that appear to be part of an                          coins, the lower redemption rate of
                                                                                                                         illegal scheme, or contain material that                          $1.4585 will apply. A similar update is
                                             FOR FURTHER INFORMATION CONTACT:
                                                                                                                         is not identifiable as bent or partial                            made to the redemption rate for $1
                                             Sheila Barnett, Legal Counsel; Office of                                    United States coinage.                                            coins.
                                             the Chief Counsel; United States Mint;                                         The second category of revisions                                 The third category of revisions
                                             at (202) 354–7624 or sbarnett@                                              relates to the redemption rates for                               clarifies that the United States Mint will
                                             usmint.treas.gov.                                                           uncurrent coins and bent and partial                              not accept fused coins. The United
ethrower on DSK3G9T082PROD with RULES




                                             SUPPLEMENTARY INFORMATION:                                                  coins that have been withdrawn from                               States Mint will also not accept mixed
                                                                                                                         circulation. For uncurrent coins, the                             coins (coins of several alloy categories
                                             I. Background                                                               revisions clarify the procedure for                               presented together) for redemption, with
                                                The Treasury Regulations appearing                                       redemption by instructing the public to                           the exception of bent or partial one-cent
                                             at 31 CFR part 100, subpart C, are                                          deposit the uncurrent coins with a                                coins and $1 coins that are presented in
                                             promulgated under 31 U.S.C. 5120, and                                       financial institution that will accept                            mixed years.


                                        VerDate Sep<11>2014        16:19 Dec 19, 2017          Jkt 244001        PO 00000        Frm 00029        Fmt 4700        Sfmt 4700   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                 weight threshold will be required to be               III. Procedural Analysis
                                             the public on notice that the Director of               certified by the United States Mint prior
                                                                                                                                                           Regulatory Planning and Review
                                             the United States Mint may provide                      to submission. The annual weight
                                             information pertaining to any bent or                   threshold, along with other certification               The Office of Management and Budget
                                             partial coin submission to law                          instructions, will be provided on the                 determined that this rule does not
                                             enforcement officials or other third                    United States Mint’s website.                         constitute a ‘‘significant regulatory
                                             parties for purposes of investigating                     One comment asked whether a                         action’’ under Executive Order 12866 or
                                             related criminal activity or for purposes               participant would be required to go                   Executive Order 13771.
                                             of seeking civil judgment. The revisions                through the certification process prior to
                                                                                                     each submission. The answer is no. A                  Regulatory Flexibility Act Analysis
                                             also notify potential participants that
                                             they may be held criminally and/or                      recertification will be required every                   It is hereby certified that the revisions
                                             civilly liable, fined, and/or imprisoned                three years for those participants whose              will not have a significant economic
                                             for fraudulent submissions.                             recurring submissions exceed the                      impact on a substantial number of small
                                               Finally, the United States Mint                       annual submission threshold, unless the               entities. Accordingly, a regulatory
                                             clarifies which of the various offices and              United States Mint decides in its                     flexibility analysis under the Regulatory
                                             bureaus within the Department of the                    discretion that recertification is needed             Flexibility Act, 5 U.S.C. 601 et seq., is
                                             Treasury has authorization to update the                earlier than the three year period.                   not required. First, the regulations do
                                             different subparts within part 100.                     Details and instructions on the                       not directly regulate any entities. The
                                             II. Public Participation                                certification process will be available on            redemption of uncurrent, bent, or partial
                                                                                                     the United States Mint’s website.                     coins is a discretionary service offered
                                                In 82 FR 43730, Sep. 19, 2017, the                                                                         to the public; participation is voluntary.
                                             United States Mint issued a notice of                   Foreign Participants
                                                                                                                                                           Second, many of the coins presented for
                                             proposed rulemaking (NPRM) to revise                      Two comments expressed concern                      redemption in the past were submitted
                                             redemption rates and procedures                         with the regulations applying equally to              by individuals transacting with the
                                             relating to the exchange of uncurrent,                  domestic and foreign recycling                        United States Mint in their own names.
                                             bent, partial, fused, and mixed coins,                  companies. Foreign individuals and                    The number of entities tendering
                                             and requested comments on the                           businesses will be given the same                     significant quantities of coins for
                                             proposed revisions. The United States                   opportunity to participate in the                     redemption is small. Even if each such
                                             Mint received fourteen comments. The                    exchange program. The requirement to                  individual or entity qualified as a
                                             majority of comments were from                          provide payment information for a bank                ‘‘small entity’’ within the meaning of 5
                                             individuals and businesses who                          or other financial institution in the                 U.S.C. 604(a), the United States Mint
                                             previously participated in the exchange                 United States applies equally to                      does not believe that the revisions are
                                             program. One comment was from a                         domestic and foreign participants.                    likely to have a significant economic
                                             trade association representing the                                                                            impact. The revisions do not change or
                                             private, for-profit recycling industry.                 Request To Clarify Denomination
                                                                                                     Categories                                            limit the scope of what may be
                                                Most comments expressed support for                                                                        submitted for redemption or who may
                                             the revisions. Many of the comments                        One comment requested clarity on                   submit them. The revisions may require
                                             raised questions about details of the                   how to separate bent or partial coins for             additional information from participants
                                             exchange program that specifically                      redemption. Specifically, the comment                 to deter potential fraud and abuse, but
                                             relate to operating procedures. Those                   cited the requirement of the prior                    the added administrative costs for
                                             instructions and other details relating to              regulation to separate bent or partial                participants are expected to be minimal.
                                             the exchange of bent and partial coins                  coins into the following denomination
                                             will be provided to the public on the                   categories of at least one pound: One-                List of Subjects in 31 CFR Part 100
                                             United States Mint’s website.                           cent coins; 5-cent coins; dime, quarter-                  Coins.
                                             Instructions and other details related to               dollar, and half-dollar coins; and $1
                                             the exchange of uncurrent coins will be                 coins. The United States Mint is only                 Words of Issuance
                                             described in the Federal Reserve’s                      revising the redemption rates, not the                  For the reasons set forth in the
                                             Operating Circular 2. If a comment is                   denomination categories themselves.                   preamble, the United States Mint
                                             not addressed in the summary below, it                  Paragraph (d) is revised to clarify that              amends 31 CFR part 100 as follows:
                                             is because the comment was more                         lots of at least one pound must still be
                                             specific to those operating procedures                  separated into the denomination                       PART 100—EXCHANGE OF PAPER
                                             and details, or the comment was not                     categories of one-cent coins; 5-cent                  CURRENCY AND COIN
                                             responsive to the proposed revisions.                   coins; dime, quarter-dollar, and half-
                                                                                                     dollar coins; and $1 coins.                           ■ 1. The authority citation for part 100
                                             Certification Process                                                                                         continues to read as follows:
                                               The majority of comments supported                    Conclusion
                                                                                                                                                               Authority: 31 U.S.C. 321.
                                             a participant certification process. A few                After reviewing and considering all
                                                                                                                                                           ■ 2. Amend § 100.2 by designating the
                                             comments expressed confusion or                         timely comments received in response
                                                                                                                                                           undesignated paragraph as paragraph (a)
                                             dissatisfaction with certification                      to the NPRM, the United States Mint
                                                                                                                                                           and adding paragraph (b) to read as
                                             occurring prior to submission of coins.                 decided to move forward with the
                                                                                                                                                           follows:
                                             One comment said it would be logically                  proposed regulatory text, with a minor
                                             inconsistent to require certification                   editorial change to clarify the                       § 100.2 Scope of regulations; transactions
                                             prior to submission because the                         denomination categories. The United
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                                                                                                                                                           effected through Federal Reserve banks
                                             thresholds related to certification are                 States Mint has determined that this                  and branches; distribution of coin and
                                             related to the submission. The United                   minor editorial change is consistent                  currencies.
                                             States Mint does not believe it is                      with the intent that was proposed in the              *     *     *   *     *
                                             inconsistent to require certification                   NPRM and does not add any additional                    (b) The Department of the Treasury
                                             prior to submission. Participants who                   burden upon the public than was                       has authorized amendments to this part
                                             will exceed or plan to exceed the annual                already proposed in the NPRM.                         by the following bureaus and offices:


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                                                          Federal Register / Vol. 82, No. 243 / Wednesday, December 20, 2017 / Rules and Regulations                                          60311

                                               (1) This section—Office of the                        submission under this subpart shall be                submission, at the participant’s sole
                                             Secretary.                                              deemed an acceptance of all provisions                expense, within 30 days. If the
                                               (2) Subpart A—Office of the Secretary.                of this subpart.                                      submission is not retrieved in a timely
                                               (3) Subpart B—Bureau of Engraving                        (b) Definitions. (1) Bent coins are U.S.           manner, the entire submission will be
                                             and Printing.                                           coins which are bent or deformed so as                treated as voluntarily abandoned
                                               (4) Subpart C—United States Mint.                     to preclude normal machine counting                   property, pursuant to 41 CFR 102–41.80,
                                               (5) Subpart D—Office of the Secretary.                but which are readily and clearly                     and will be retained or disposed of by
                                             ■ 3. Revise subpart C to read as follows:               identifiable as to genuineness and                    the United States Mint;
                                                                                                     denomination.                                            (v) A submission contains any
                                             Subpart C—Request for Examination                          (2) Partial coins are U.S. coins which             contaminant that could render the coins
                                             of Coin for Possible Redemption                         are not whole; partial coins must be                  unsuitable for coinage metal. In such
                                                                                                     readily and clearly identifiable as to                instances, the participant will be
                                             Sec.                                                    genuineness and denomination.                         notified to retrieve the entire
                                             100.10 Request for examination of                          (3) Participants are individuals or
                                                  uncurrent coin for possible redemption.                                                                  submission, at the participant’s sole
                                             100.11 Request for examination of bent or
                                                                                                     businesses that submit coins through                  expense, within 30 days. If the
                                                  partial coin for possible redemption.              the redemption process.                               submission is not retrieved in a timely
                                             100.12 Exchange of fused or mixed coin.                    (c) Redemption process. (1)                        manner, the entire submission will be
                                             100.13 Notices.                                         Depending on submission amount and                    treated as voluntarily abandoned
                                                                                                     frequency, participants may be subject                property, pursuant to 41 CFR 102–41.80,
                                             § 100.10 Request for examination of                     to a certification process by the United              and will be retained or disposed of by
                                             uncurrent coin for possible redemption.                 States Mint. The established annual                   the United States Mint; or
                                                (a) Definition. Uncurrent coins are                  weight threshold and details about the                   (vi) A submission contains more than
                                             whole U.S. coins which are merely                       participant certification process will be             a nominal amount of uncurrent coins. In
                                             worn or reduced in weight by natural                    published on the United States Mint’s                 such instances, the participant may be
                                             abrasion yet are readily and clearly                    website. If certification is required, it             notified to retrieve the entire
                                             recognizable as to genuineness and                      must be done prior to submission.                     submission, at the participant’s sole
                                             denomination and which are machine                         (2) All submissions for review shall               expense, within 30 days. If the
                                             countable.                                              include an estimate of the value of the               submission is not retrieved in a timely
                                                (b) Redemption process. The United                   coins and an explanation of how the                   manner, the entire submission will be
                                             States Mint will not accept uncurrent                   submission came to be bent or partial.                treated as voluntarily abandoned
                                             coins for redemption. Members of the                    The submission should also contain the                property, pursuant to 41 CFR 102–41.80,
                                             public wishing to redeem lawfully held                  bank account number and routing                       and will be retained or disposed of by
                                             uncurrent coins must deposit the                        number for a checking or savings                      the United States Mint.
                                             uncurrent coins with a bank or other                    account at a bank or other financial                     (7) The Director of the United States
                                             financial institution that will accept                  institution (such as a mutual fund,                   Mint, or designee, shall have final
                                             them, or with a depository institution                  brokerage firm, or credit union) in the               authority with respect to all aspects of
                                             that has established a direct customer                  United States.                                        redemptions of bent or partial coin
                                             relationship with a Federal Reserve                        (3) Participants may be required to                submissions.
                                             Bank. A Federal Reserve Bank will                       provide documentation for how the                        (d) Redemption rates. (1) Generally.
                                             redeem uncurrent coins, based on the                    participant came into custody of the                  Participants shall separate bent or
                                             policies described in the Federal                       bent or partial coins.                                partial coins by the denomination
                                             Reserve’s Operating Circular 2.                            (4) The United States Mint reserves                categories listed below in lots of at least
                                                (c) Criteria for acceptance. Depository              the right to test samples from any                    one pound for each denomination
                                             institutions that redeem uncurrent coins                submission to authenticate the material.              category. The United States Mint will
                                             must sort the coins by denomination                     The size of the sample will be limited                redeem bent or partial coins on the basis
                                             into packages in accordance with the                    to the amount necessary for                           of their weight and denomination at the
                                             Federal Reserve’s Operating Circular 2.                 authentication. Testing may result in                 following rates:
                                             The Federal Reserve Banks have the                      partial or complete destruction of the                   (i) One-Cent Coins: $1.4585 per
                                             right to reject any shipment containing                 sample.                                               pound.
                                             objects that are not U.S. coins or any                     (5) The United States Mint reserves                   (ii) 5-Cent Coins: $4.5359 per pound.
                                             contaminant that could render the                       the right to conduct site visits for                     (iii) Dime, Quarter-Dollar, and Half-
                                             uncurrent coins unsuitable for coinage                  participants over a certain volume                    Dollar Coins: $20.00 per pound.
                                             metal.                                                  threshold to verify information provided                 (iv) $1 Coins: $20.00 per pound.
                                                (d) Redemption sites. The Federal                    to the United States Mint.                               (2) Exceptions. (i) The United States
                                             Reserve Banks and branches listed in                       (6) No redemption will be made                     Mint will redeem one-cent coins
                                             § 100.17 are the only authorized                        when:                                                 inscribed with a year after 1982 at the
                                             redemption sites at which a depository                     (i) A submission, or any portion of a              rate set forth at paragraph (d)(1)(i) of
                                             institution that has established a direct               submission, demonstrates a pattern of                 this section unless such one-cent coins
                                             customer relationship with a Federal                    intentional mutilation or an attempt to               are presented unmixed from one-cent
                                             Reserve Bank may redeem uncurrent                       defraud the United States;                            coins inscribed with a year before 1983.
                                             coins.                                                     (ii) A submission appears to be part               The United States Mint will redeem
                                                                                                     of, or intended to further, any criminal              unmixed one-cent coins inscribed with
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                                             § 100.11 Request for examination of bent                activity;                                             a year after 1982 at a rate of $1.8100 per
                                             or partial coin for possible redemption.                   (iii) A submission contains a material             pound.
                                               (a) General. Lawfully held bent or                    misrepresentation of facts;                              (ii) The United States Mint will
                                             partial coins of the United States may be                  (iv) Material presented is not                     redeem $1 coins inscribed with a year
                                             submitted to the United States Mint for                 identifiable as United States coins. In               after 1978 at the rate set forth at
                                             examination in accordance with the                      such instances, the participant will be               paragraph (d)(1)(iv) of this section
                                             provisions in this subpart. Any                         notified to retrieve the entire                       unless such $1 coins are presented


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                                             60312         Federal Register / Vol. 82, No. 243 / Wednesday, December 20, 2017 / Rules and Regulations

                                             unmixed from $1 coins inscribed with                       DEPARTMENT OF HOMELAND                                            enhance the safety of participants and
                                             a year before 1979. The United States                      SECURITY                                                          spectators at regattas and other marine
                                             Mint will redeem unmixed $1 coins                                                                                            events. Drawbridge operation
                                             inscribed with a year after 1978 at a rate                 Coast Guard                                                       regulations authorize changes to
                                             of $56.00 per pound.                                                                                                         drawbridge schedules to accommodate
                                                (e) Redemption sites. Coins are                         33 CFR Parts 100, 117, 147, and 165                               bridge repairs, seasonal vessel traffic,
                                             shipped at the sender’s risk of loss and                                                                                     and local public events. Regulated
                                                                                                        [USCG–2017–1007]
                                             expense.                                                                                                                     Navigation Areas are water areas within
                                                (1) Bent and partial coins submitted                    2016 Quarterly Listings; Safety Zones,
                                             in quantities less than or equal to a                                                                                        a defined boundary for which
                                                                                                        Security Zones, Special Local                                     regulations for vessels navigating within
                                             threshold established annually will be                     Regulations, Drawbridge Operation
                                             redeemed only at the United States Mint                                                                                      the area have been established by the
                                                                                                        Regulations and Regulated Navigation                              regional Coast Guard District
                                             at Philadelphia, P.O. Box 400,                             Areas
                                             Philadelphia, PA 19105.                                                                                                      Commander.
                                                (2) Bent and partial coins submitted                    AGENCY: Coast Guard, DHS.                                           Timely publication of these rules in
                                             in quantities greater than a threshold                     ACTION:Notification of expired                                    the Federal Register may be precluded
                                             established annually should be                             temporary rules issued.                                           when a rule responds to an emergency,
                                             scheduled with the United States Mint                                                                                        or when an event occurs without
                                             to be sent directly to the authorized                      SUMMARY:    This document provides
                                                                                                                                                                          sufficient advance notice. The affected
                                             recycler(s) of the United States Mint.                     notice of substantive rules issued by the
                                                                                                        Coast Guard that were made temporarily                            public is, however, often informed of
                                             § 100.12    Exchange of fused or mixed coin.               effective but expired before they could                           these rules through Local Notices to
                                               (a) Definitions. (1) Fused coins are                     be published in the Federal Register.                             Mariners, press releases, and other
                                             U.S. coins which are melted to the                         This document lists temporary safety                              means. Moreover, actual notification is
                                             extent that they are bonded together.                      zones, security zones, special local                              provided by Coast Guard patrol vessels
                                               (2) Mixed coins are U.S. coins of                        regulations, drawbridge operation                                 enforcing the restrictions imposed by
                                             several alloy categories which are                         regulations and regulated navigation                              the rule. Because Federal Register
                                             presented together, but are readily and                    areas, all of limited duration and for                            publication was not possible before the
                                             clearly identifiable as U.S. coins.                        which timely publication in the Federal                           end of the effective period, mariners
                                               (b) Fused and mixed coins. The                           Register was not possible.                                        were personally notified of the contents
                                             United States Mint will not accept fused                                                                                     of these safety zones, security zones,
                                                                                                        DATES: This document lists temporary
                                             coins for redemption. The United States                                                                                      special local regulations, regulated
                                                                                                        Coast Guard rules that became effective,
                                             Mint will not accept mixed coins for                                                                                         navigation areas or drawbridge
                                                                                                        primarily between July 2016 and
                                             redemption, except as provided for in
                                                                                                        September 2016, unless otherwise                                  operation regulations by Coast Guard
                                             § 100.11(d)(2).
                                                                                                        indicated, and were terminated before                             officials on-scene prior to any
                                             § 100.13    Notices.                                       they could be published in the Federal                            enforcement action. However, the Coast
                                                (a) Additional information and                          Register.                                                         Guard, by law, must publish in the
                                             procedures about the United States                         ADDRESSES: Temporary rules listed in                              Federal Register notice of substantive
                                             Mint’s redemption of bent or partial                       this document may be viewed online,                               rules adopted. To meet this obligation
                                             coins can be found on the United States                    under their respective docket numbers,                            without imposing undue expense on the
                                             Mint’s website.                                            using the Federal eRulemaking Portal at                           public, the Coast Guard periodically
                                                (b) Criminal penalties connected with                   http://www.regulations.gov.                                       publishes a list of these temporary
                                             the defacement or mutilation of U.S.                       FOR FURTHER INFORMATION CONTACT: For                              safety zones, security zones, special
                                             coins are provided in 18 U.S.C. 331.                       questions on this notice contact Yeoman                           local regulations, regulated navigation
                                                (c) The Director of the United States                   First Class David Hager, Office of                                areas and drawbridge operation
                                             Mint may provide information                               Regulations and Administrative Law,                               regulations. Permanent rules are not
                                             pertaining to any bent or partial coin                     telephone (202) 372–3862.
                                             submissions to law enforcement                                                                                               included in this list because they are
                                                                                                        SUPPLEMENTARY INFORMATION: Coast                                  published in their entirety in the
                                             officials or other third parties for
                                                                                                        Guard District Commanders and                                     Federal Register. Temporary rules are
                                             purposes of investigating related
                                                                                                        Captains of the Port (COTP) must be                               also published in their entirety if
                                             criminal activity or for purposes of
                                                                                                        immediately responsive to the safety                              sufficient time is available to do so
                                             seeking a civil judgment.
                                                (d) Whoever intentionally files a false                 and security needs within their                                   before they are placed in effect or
                                             claim seeking reimbursement for                            jurisdiction; therefore, District                                 terminated.
                                             uncurrent, bent or partial coins may be                    Commanders and COTPs have been
                                                                                                        delegated the authority to issue certain                            The following unpublished rules were
                                             held criminally liable under a number                                                                                        placed in effect temporarily during the
                                             of statutes including 18 U.S.C. 287 and                    local regulations. Safety zones may be
                                                                                                        established for safety or environmental                           period between May 2013–October 2016
                                             18 U.S.C. 1341 and may be held civilly                                                                                       unless otherwise indicated. To view
                                             liable under 31 U.S.C. 3729, et seq.                       purposes. A safety zone may be
                                                                                                        stationary and described by fixed limits                          copies of these rules, visit
                                               Dated: December 11, 2017.                                or it may be described as a zone around                           www.regulations.gov and search by the
                                             Jean Gentry,                                               a vessel in motion. Security zones limit                          docket number indicated in the list
                                             Chief Counsel, United States Mint.                         access to prevent injury or damage to                             below.
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                                             [FR Doc. 2017–27026 Filed 12–19–17; 8:45 am]               vessels, ports, or waterfront facilities.
                                             BILLING CODE 4810–37–P                                     Special local regulations are issued to

                                                              Docket No.                                                 Type                                                    Location                             Effective date

                                             USCG–2016–0465 ..................................   Security Zones ........................................   Rhode Island ...........................................       5/27/2016



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Document Created: 2018-10-25 10:55:10
Document Modified: 2018-10-25 10:55:10
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective Date: January 19, 2018.
ContactSheila Barnett, Legal Counsel; Office of the Chief Counsel; United States Mint; at (202) 354-7624 or [email protected]
FR Citation82 FR 60309 

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