,,ii  #aacth ,,congress  #ast ,session  
,s4 #aaje  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,june #f1 #bjac
 ,mr4 ,harkin 7for himself1 ,mr4        
,mc,cain1 ,mr4 ,coburn1 ,mr4 ,enzi1 and 
,mr4 ,udall of ,colorado7 introduced the
 following bill2 which was read twice   
and referred to the ,committee on       
,banking1 ,housing1 and ,urban ,affairs 
,a ,,bill  ,to improve the circulation  
of #a coins1 to remove barrier to the   
circulation of such coins1 and for other
 purposes4  #a4 ,short title ,this ,act 
may be cited as the ,currency           
,optimization1 ,innovation1 and         
,national ,savings ,act4  #b4 ,improving
 circulation and removing barriers to   
circulation of #a coins  7a7 ,duties of 
the ,board of ,governors of the ,federal
 ,reserve ,system  7#a7 ,coin           
sequestration  7,a7 ,in general ,not    
later than #f months after the date of  
enactment of this ,act1 the ,board of   
,governors of the ,federal ,reserve     
,system shall sequester all #a coins    

bearing the design common to those #a   
coins minted and issued from #aigi-aiha 
and again in #aiii4  7,b7 ,treatment of 
coins ,coins sequestered pursuant to    
subparagraph 7,a7 shall not be returned 
to ordinary circulation or otherwise    
released from storage controlled by the 
,federal ,reserve ,system or an agent of
 the ,federal ,reserve ,system4  7,c7   
,exception for certain uses             
,notwithstanding subparagraph 7,b71     
coins sequestered pursuant to           
subparagraph 7,a7 may be released1 at   
face value and in bulk quantities--  7i7
 to dealers in collectible coins2 and   
7ii7 to countries that have adopted the 
,united ,states dollar as their base    
unit of exchange4  7,d7 ,obsolete coins 
,at the end of the #a-year period       
beginning on the date of enactment of   
this ,act1 the ,secretary of the        
,treasury shall declare all coins       
described under subparagraph 7,a7 to be 
obsolete1 and such coins--  7i7 shall be
 treated in the same manner as all other

 obsolete ,united ,states coins2 and    
7ii7 to the extent that such coins      
remain in general circulation1 shall    
remain legal tender4  7#b7 ,quarterly   
report on #a coins ,the ,board of       
,governors of the ,federal ,reserve     
,system shall issue quarterly reports to
 the ,committee on ,financial ,services 
of the ,house of ,representatives and   
the ,committee on ,banking1 ,housing1   
and ,urban ,affairs of the ,senate on-- 
7,a7 the number of coins sequestered    
pursuant to paragraph 7#a77;,a72  7,b7  
the number of coins described in        
paragraph 7#a77;,a7 that remain in      
general circulation2 and  7,c7 efforts  
that have been made to reduce the number
 of coins described in subparagraphs    
7,a7 and 7,b7 to zero4  7#c7            
,improvement of circulation ,the ,board 
of ,governors of the ,federal ,reserve  
,system shall--  7,a7 undertake efforts 
to improve the circulation and remove   
barriers to the circulation of the #a   
coin1 other than those coins described  

under paragraph 7#a77;,a72  7,b7 issue a
 quarterly report to the ,committee on  
,financial ,services of the ,house of   
,representatives and the ,committee on  
,banking1 ,housing1 and ,urban ,affairs 
of the ,senate on--  7i7 what efforts   
have been made to improve the           
circulation of #a coins and what efforts
 are being planned to improve the       
circulation of #a coins2  7ii7 the      
success of such efforts1 including an   
analysis of such coins held in storage  
owned or controlled by the ,federal     
,reserve ,system and the number such    
coins in circulation2  7iii7 barriers to
 the circulation of such coins1         
including the availability of such coins
 in quantities unmixed with the #a coins
 described in paragraph 7#a77;,a72 and  
7iv7 the extent to which the ,federal   
,reserve ,system and any agents of the  
,federal ,reserve ,system are unable to 
meet end-user requests for delivery of  
unmixed quantities of such coins in     
whatever form such end user requires1   

including rolls1 disposable tubes1 or   
volume bags of such coins4  7#d7        
,outreach and education ,the ,board of  
,governors of the ,federal ,reserve     
,system shall1 within existing programs1
 continuously conduct outreach and      
education programs aimed at helping each
 business using or accepting cash to    
choose the best mix of #a coins and     
banknotes to facilitate transactions and
 reduce costs of transactions and of    
cashing out at the end of a transaction 
period4  7#e7 ,use of #a coins by       
foreign countries ,the ,board of        
,governors of the ,federal ,reserve     
,system shall work with the ,departments
 of ,state and ,treasury to ensure that 
countries that have adopted the dollar  
as a base unit of exchange and which    
place orders with the ,federal ,reserve 
,system1 or through any ,united ,states 
financial institution1 for supplies of  
#a monetary units1 are fully briefed    
before placing each such order on the   
durability and longevity of #a coins in 

high-circulation economies when used for
 transactions of a low dollar value4    
7b7 ,publicity requirement ,section     
#eaab7p77#b7 of title #ca1 ,united      
,states ,code1 is amended by inserting  
after ,mint the following3 and the      
,board of ,governors of the ,federal    
,reserve ,system4  7c7 ,report on       
implementation ,not later than the end  
of the #a-year period beginning on the  
date of enactment of this ,act1 and     
annually thereafter1 the ,comptroller   
,general of the ,united ,states and the 
,inspectors ,general of the ,federal    
,reserve ,system and the ,bureau of     
,consumer ,financial ,protection shall  
each issue a report to the ,committee on
 ,financial ,services of the ,house of  
,representatives and the ,committee on  
,banking1 ,housing1 and ,urban ,affairs 
of the ,senate on steps being taken by  
the ,board of ,governors of the ,federal
 ,reserve ,system to carry out this     
,act4  7d7 ,clarification with respect  
to seigniorage ,the ninth proviso of    

section #eacf of title #ca1 ,united     
,states ,code1 is amended by inserting  
after miscellaneous receipts the        
following3 1 and such amount shall be   
included as an estimated receipt of the 
,government and a receipt of the        
,government under paragraphs 7#f7 and   
7#g71 respectively1 of section #aaje7;a7
 in any budget submitted under such     
section4  #c4 ,saving taxpayers funds by
 transitioning to the use of #a coins   
7a7 ,in general ,it is the policy of the
 ,united ,states that after #a coins    
achieve sufficient market penetration   
such that consumers and retailers are   
comfortable using #a coins and are able 
to obtain adequate supplies of #a coins1
 #a coins should replace #a ,federal    
,reserve notes as the only #a monetary  
unit issued and circulated by the       
,federal ,reserve ,system4  7b7         
,deadline for placing #a ,federal       
,reserve notes into circulation ,federal
 ,reserve banks may continue to place   
into circulation #a ,federal ,reserve   

notes until the earlier of--  7#a7 the  
date on which the number of #a coins    
placed into circulation after the date  
of the enactment of this ,act exceeds   
#fjj1jjj1jjj annually2 or  7#b7 the date
 that is #d years after the date of the 
enactment of this ,act4  7c7 ,transition
 period ,after the date referred to in  
subsection 7b71 a ,federal ,reserve bank
 may not order additional #a ,federal   
,reserve notes but may1 for a period of 
one year1 continue to place into        
circulation #a ,federal ,reserve notes  
on hand or those deposited with it1     
except for notes described in subsection
 7d74  7d7 ,removal of unfit currency   
,after the date referred to in          
subparagraph 7b71 a ,federal ,reserve   
bank shall continue to remove unfit     
currency from circulation1 and shall    
continue to destroy such currency4  7e7 
,exception ,notwithstanding subsections 
7b7 and 7c71 the ,board of ,governors of
 the ,federal ,reserve ,system shall    
produce such ,federal ,reserve notes of 

#a denomination as the ,board of        
,governors determines from time to time 
are appropriate solely to meet the needs
 of collectors of that denomination4    
,such notes shall be issued by one or   
more ,federal ,reserve banks in         
accordance with section #af of the      
,federal ,reserve ,act and sold by the  
,board of ,governors1 in whole or in    
part1 under procedures prescribed by the
 ,board of ,governors4  7f7 ,no effect  
on legal tender ,notwithstanding any    
other subsection of this section1 #a    
,federal ,reserve notes are legal tender
 in the ,united ,states for all debts1  
public and private1 public charges1     
taxes1 and duties1 regardless of the    
date of printing or issue4