To suspend the production of the penny and nickel, to require the Comptroller General of the United States to carry out a study on pennies and nickels, and for other purposes.
This bill would suspend the production of the one-cent (penny) and five-cent (nickel) coins for 10 years from enactment, with limited exceptions. Specifically, the Secretary of the Treasury could continue to mint and sell such coins only for numismatic collectors (non-circulating, high-collectibility coins), and the net receipts from these sales would have to cover the full production costs. Regardless of production status, pennies and nickels would remain legal tender for all debts and obligations. In addition, the bill requires the Comptroller General (GAO) to conduct a study within three years to assess the effects of the suspension and to report on whether production should remain suspended, end permanently, or be reinstated, including an analysis of potential net savings and the impact of rounding cash transactions to the nearest ten cents.
Key Points
- 1Temporary suspension of production: The Secretary of the Treasury must cease production of pennies and nickels for 10 years after enactment, with an exception to mint and sell them only for numismatic collectors.
- 2Numismatic sales: Coins produced for collectors would be sold under existing rules for numismatic coins, not as circulating currency.
- 3Revenue covering costs: Net receipts from any numismatic sales must equal the total production costs (including variable and allocated fixed costs) as determined by the Secretary.
- 4Legal tender preserved: Despite suspension or production changes, pennies and nickels would remain legal tender for all debts and payments.
- 5GAO study and recommendations: Within three years, the Comptroller General, in consultation with Treasury, the Mint, and the IRS, must study the effects of the suspension and report to specified Senate and House committees with options to continue suspension, permanently end production, or reinstate production, including analysis of net savings and the impact of rounding to the nearest ten cents.