March 2017 Eliminate U.S. Penny/Cent Bill Proposed to Senate
Penny elimination legislation is being proposed again this year. The bill is being labeled as, ‘Currency Optimization, Innovation, and National Savings Act of 2017’ by John McCain, R-Arizona and Mike Enzi, R-Wymoming.
Eliminate Penny Goal:
Stop all production of the one-cent penny coin for ten years. During this time period, a study is to be conducted to see if the penny should be completely eliminated and removed from circulation as a coin denomination.
Furthermore, composition change for the U.S. nickel, five-cent coin. The change is to become 80% copper and 20 percent nickel. Currently, the nickel is 75% copper, 25% nickel.
In addition, elimination of the one dollar note to be replaced by the $1 coin.
Similar legislation has been proposed in the past without much success. $1 coins ultimately failed and were not accepted by the public as desired legal tender. People did not like carrying around bulky coins. Finally, production of the $1 presidential dollar coins was suspended because of that disinterest.
Are you planning on picking up 2017 pennies?
The documentation reads as follows:
Senate Legislative Counsel
1 Title: To save taxpayers money by improving the manufacturing and distribution of coins and
2 notes, and for other purposes.
5 Be it enacted by the Senate and House of Representatives of the United States of America in
6 Congress assembled,
SECTION 1. SHORT TITLE.
8 This Act may be cited as the “Currency Optimization, Innovation, and National Savings Act of
SEC. 2. SAVING TAXPAYERS MONEY BY SUSPENDING
11 PRODUCTION OF THE PENNY.
12 (a) Policy of the United States.—It is the policy of the United States that—
13 (1) sufficient one-cent coins have already been minted to meet demand;
14 (2) taxpayers have been and would continue to lose money producing the one-cent coin;
16 (3) further production of the one-cent coin is not necessary for the next decade.
17 (b) Temporary Suspension of Production of the One-cent Coin.—Except as provided in
18 subsection (c) and notwithstanding any other provision of law, the Secretary of the Treasury
19 shall cease production of any new one-cent coins for the 10-year period beginning on the date of
20 enactment of this Act.
21 (c) Exception.—
22 (1) IN GENERAL.—The Secretary of the Treasury shall continue to produce one-cent coins
23 as appropriate solely to meet the needs of numismatic collectors of that denomination.
24 (2) SALE.—The one-cent coins produced under paragraph (1) shall be sold in accordance
25 with other general provisions governing collectible coins (as opposed to circulating coins).
26 (3) NET RECEIPTS.—The net receipts from the sale of one-cent coins produced under this
27 exception shall equal the total cost of production, including variable costs and the
28 appropriate share of fix costs of production, as determined by the Secretary of the Treasury.
29 (d) GAO Study.—Not later than 3 years after the date of enactment of this Act, the
30 Comptroller General of the United States shall—
31 (1) study the effect of the suspension of production of the one-cent coin; and
32 (2) submit to Committee on the Budget and the Committee on Banking, Housing, and
33 Urban Affairs of the Senate of the Senate and the Committee on the Budget and the
34 Committee on Financial Services of the House of Representatives a report—
35 (A) on whether production should remain suspended or should be reinstated; and
36 (B) that considers—
37 (i) the net savings to taxpayers from suspension of production;
Senate Legislative Counsel
1 (ii) whether public demand for one-cent coins was able to be continuously met
2 during the period of suspension;
3 (iii) whether public demand for one-cent coins would likely continue to be met
4 in the future without new production;
5 (iv) whether the one-cent denomination of coin should be permanently ended as
6 was the case with the one-half cent coin; and
7 (v) any other factors that are relevant.
8 (e) No Effect on Legal Tender.—Notwithstanding any other provision of this section, one-cent
9 coins are legal tender in the United States for all debts, public and private, public charges, taxes,
10 and duties, regardless of the date of minting or issue.
SEC. 3. SAVING TAXPAYERS MONEY BY CHANGING
12 THE COMPOSITION OF THE NICKEL.
13 (a) New Composition Required.—Section 5112 of title 31, United States Code, is amended by
14 adding at the end the following:
15 “(w) Composition of Circulating Coins.—
16 “(1) IN GENERAL.—Notwithstanding any other provision of law, the Director of the
17 United States Mint shall modify the composition of the five-cent coin in accordance with a
18 study and analysis conducted by the United States Mint to a variant of cupronickel
19 composition equal to 80 percent copper and 20 percent nickel.
20 “(2) EFFECT.—This subsection shall remain in effect as long as the Director of the United
21 States Mint verifies that the modification described in paragraph (1) will—
22 “(A) reduce costs to the taxpayer;
23 “(B) is found to be seamless through test by most coin-acceptors; and
24 “(C) will have no impact on the public or on stakeholders.
25 “(3) INCREASE IN COPPER CONTENT.—The Director of the United States Mint may
26 increase the percentage of copper and decrease the percentage of nickel in the five-cent coin
28 “(A) the Director of the United States Mint submits to Congress a study on such a
30 “(B) the Director of the United States Mint makes the findings described in
31 paragraph (2); and
32 “(C) the 90-day period beginning on the date on which the study is submitted under
33 subparagraph (A) has expired.”.
SEC. 4. SAVING TAXPAYERS MONEY BY REPLACING $1
35 NOTES WITH $1 COINS.
36 (a) In General.—It is the policy of the United States that $1 coins should replace $1 Federal
37 reserve notes as the only $1 monetary unit issued and circulated by the Board of Governors of
Senate Legislative Counsel
1 the Federal Reserve System.
2 (b) Final Date for Placing $1 Notes Into Circulation.—Beginning on the date that is 2 years
3 after the date of enactment of this Act, the Board of Governors of the Federal Reserve System
4 may not issue $1 Federal reserve notes.
5 (c) Transition Period.—Before the date described in subsection (b), the Board of Governors of
6 the Federal Reserve System shall ensure adequate supplies of $1 coins to meet the demand of
7 such coins on and after such date.
8 (d) Removal and Destruction of $1 Federal Reserve Notes.—The Board of Governors of the
9 Federal Reserve System shall ensure that all $1 Federal reserve notes removed from circulation
10 in accordance with the date described in subsection (b) have been destroyed.
11 (e) Exception.—Notwithstanding subsections (b) and (c), the Board of Governors of the
12 Federal Reserve System shall produce such Federal reserve notes of $1 denomination as the
13 Board of Governors determines from time to time are appropriate solely to meet the needs of
14 numismatic collectors of that denomination. Such collectible versions of $1 Federal reserve notes
15 shall be sold in accordance with other general provisions governing collectible versions of notes.
16 (f) No Effect on Legal Tender.—Notwithstanding any other provision of this section, $1
17 Federal reserve notes are legal tender in the United States for all debts, public and private, public
18 charges, taxes, and duties, regardless of the date of printing or issue.
Will the 2017 pennies be the very last year for the U.S. one-cent coin?