Proposed Rule

Federal Register / Vol. 86, No. 85 / Wednesday, May 5, 2021 / Proposed Rules
justice, and climate change.’’ The
President stated that ‘‘[t]o tackle these
challenges effectively, executive
departments and agencies . . . must be
equipped with the flexibility to use
robust regulatory action to address
national priorities.’’ E.O. 13992 revoked
certain executive orders issued prior to
January 20, 2021 and directed the
Director of the Office of Management
and Budget and the heads of agencies,
including DOT, to promptly take steps
to rescind any orders, rules, regulations,
guidelines, or policies, or portions
thereof, implementing or enforcing
these revoked executive orders, as
appropriate and consistent with
applicable law.
To respond to the President’s
direction in E.O. 13990 and E.O. 13992,
the Department seeks input from the
public on existing regulations or other
agency actions for the Department’s
consideration regarding consistency
with the policies and objectives of these
executive orders. In recognition of the
fact that safety is the Department’s
highest priority, DOT also seeks
comment on those existing regulations
or other agency actions that the
Department can address without
compromising, or to further improve,
safety. The Department welcomes
public comment on any of its
regulations and other agency actions to
achieve the goals of E.O. 13990 and E.O.
13992.
Content of Comments: The
Department will review comments
submitted timely to the docket
associated with this regulatory review,
DOT–OST–2021–0036. To maximize the
usefulness of comments, the Department
encourages commenters to provide the
following information:
1. Specific reference. A specific
reference to the regulation or other
agency action that the commenter
believes the Department should
consider with respect to the goals of
E.O. 13990 and E.O. 13992. This should
be a citation to the Code of Federal
Regulations, a guidance document
number, or an internet link. A specific
reference will assist the Department in
identifying the regulation or other
agency action, the original source of the
action, and relevant documentation that
may describe the history and effects of
the action.
2. Description of effects. A description
of the effects of the identified regulation
or other agency action. A comment that
describes the relationship between the
regulation or other agency action and
the goals of E.O. 13990 and E.O. 13992
is more useful than a comment that
merely asserts that the action is either
consistent or inconsistent with the

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executive orders. Comments that reflect
knowledge of or an understanding of the
effects and provide data or other
information describing those effects are
more creditable than comments that do
not provide such information.
Verifiable, quantifiable data describing
the effects are more useful than
anecdotal descriptions.
3. Description of potential alternative
actions. If the commenter believes that
a regulation or other agency action may
be developed that achieves the goals of
E.O. 13990 and E.O. 13992, the
commenter should describe that
regulation or action in detail. Likewise,
if the commenter believes that a
regulation or other agency action
currently meets the goals of one or both
executive orders, the commenter should
provide that explanation.
4. Examples of affected entities or
projects. Commenters may provide
examples of entities that are, have been,
or will be negatively affected by the
identified regulation or other agency
action, and examples of entities that
will benefit if DOT acts to address the
negative effects of the regulation or
other agency action. A comment listing
specific entities is more useful because
it will assist the Department in
investigating any negative effects and
how DOT may most effectively address
these effects.
Scope of Comments: The Department
is interested in comments on any DOT
regulation or other agency action for
consideration regarding consistency,
with the policies and objectives of E.O.
13990 and E.O. 13992.
Dated: April 28, 2021.
John E. Putnam,
Acting General Counsel.
[FR Doc. 2021–09239 Filed 5–4–21; 8:45 am]
BILLING CODE P

DEPARTMENT OF THE TREASURY
United States Mint
31 CFR Part 100
Exchange of Coin
United States Mint, Department
of the Treasury.
ACTION: Notice of proposed rulemaking.
AGENCY:

The United States Mint
proposes to revise its regulations
relating to the exchange of uncurrent,
bent, partial, fused, and mixed coins.
The proposed revisions will enhance
the integrity of the redemption process
for bent and partial United States coins
and prevent fraud.

SUMMARY:

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Send comments on or before July
6, 2021.
ADDRESSES: The United States Mint
invites comments on all aspects of this
proposed revision. You may send
comments by any of the following
methods:
• Federal eRulemaking Portal:
www.regulations.gov. Follow the
instructions for sending comments.
• Mail: Submit all written comments
to Mutilated Coin Redemption Program;
Manufacturing Directorate; United
States Mint, 801 9th Street NW,
Washington, DC 20220.
• Hand Delivery/Courier: Same as
mail address.
Instructions: All submissions received
must include the agency name for this
rulemaking. All comments received will
be posted without change to
regulations.gov, including any personal
information provided.
FOR FURTHER INFORMATION CONTACT:
Apryl Whitaker, Senior Legal Counsel,
Office of the Chief Counsel, United
States Mint, at (202) 354–7938 or
[email protected].
SUPPLEMENTARY INFORMATION:
DATES:

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 December 20, 2017.
Since then, the United States Mint has
identified additional portions of the
regulations in need of revision to further
enhance the integrity of the redemption
process for bent and partial United
States coins.
For many years, the United States
Mint has redeemed bent and partial
coins for full face value. The policy’s
objective was always to maintain public
confidence in United States coinage and
protect the integrity of the currency by
removing coins that were unfit for
circulation through general wear and
tear. However, in recent years, the
volume of coins submitted for possible
redemption has greatly increased.
Additionally, the condition of many
coins submitted for examination
precludes effective authentication.
Rather than removing damaged coins
from general domestic coin circulation,
as was the intended purpose, many
participants are seeking to submit large
quantities of coins that, in some cases,
have already been removed from general
circulation (e.g., recovered from scrap or
trash processing), or in other cases, are
extremely difficult to authenticate due
to their condition and volume. Finally,

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Federal Register / Vol. 86, No. 85 / Wednesday, May 5, 2021 / Proposed Rules

there are indicators of current
counterfeit coin fraud schemes aimed at
the Mutilated Coin Redemption
Program, which the revisions are
specifically designed to deter. The
United States Mint has hired additional
staff and developed improved
authentication procedures and testing
methodology for coin redemptions to
ensure that only genuine U.S. coins are
accepted for redemption.
II. This Proposed Rule
The first category of proposed
revisions would update and improve the
efficiency and security of the
redemption process for bent and partial
coins. These revisions would provide
notice that the United States Mint will
establish weight and shipment limits for
at a maximum of 1,000 lbs. of coins per
month per participant. To implement
improved testing and authentication
methods for determining the
genuineness of coins, the United States
Mint will process all future redemptions
at its Philadelphia location, which has
new equipment and staff capable of
performing detailed analyses of coins
submitted for redemption. Previously,
the United States Mint directed
approved bulk redeemers to ship
submissions directly to authorized
recyclers. Large shipments sent to our
recyclers created storage and material
control issues during the time necessary
for sampling and authentication before
melting. A 1,000 lb. limit is necessary to
ensure effective controls so that each
submission may be carefully reviewed
to ensure that only genuine U.S. coinage
is redeemed. Under these limits,
participants are not guaranteed the right
to submit 1,000 lbs. per month. The
United States Mint Philadelphia
facility’s capacity to process mutilated
coins is limited by physical storage
capacity, caseload complexity,
submission size, and workload.
Improved authentication procedures
extend the time required for sampling
and evaluation, and the amount of time
needed to properly authenticate and
then process each submission varies.
Given the intent of the program, which
is to allow for the removal of bent or
partial coins from circulation (and not
recycling recovered coin from scrap or
trash), the proposed weight limit and
scheduling restrictions propose a
reasonable balance between a
discretionary service offered to the
public to redeem bent or partial coins
received in good faith in commerce and
protection against fraud.
The second category of proposed
revisions would prohibit redemption if
a submission contains coins imported
from outside of the United States. The

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United States Mint has learned of fraud
schemes where large amounts of
counterfeit coins are manufactured
overseas in an attempt to defraud the
Government. A high percentage of
counterfeits have been identified in
imported coins intercepted by law
enforcement, as well in as several large
submissions to the Mutilated Coin
Redemption Program. It is extremely
difficult to trace and verify the chain of
custody of coins imported from outside
of the United States given that the
majority of coins coming from abroad
are represented to have been found in
scrap that has been processed and sold
multiple times over. Another
consideration is that such coins have
been effectively removed from the
domestic coin circulation for which the
redemption program aims to replace
bent or partial coins. A prohibition on
imported coins reduces the risk of fraud
on the program. The proposed revisions
also clarify that coins damaged in
industrial processes (such as shredders,
burnishers, incinerators, exposure to
elevated temperatures), or coins that
have been drilled, punctured, ground,
polished, etched, or chemically treated
by any industrial or recycling process,
are not eligible for redemption. Such
coins present a high risk of being
counterfeit because they are difficult
and time-consuming to evaluate and
require increased resources to determine
whether they are genuine. The
regulations already require coins to be
readily and clearly identifiable as to
genuineness and denomination. The
proposed revisions seek to provide
examples from the United States Mint’s
experience of coins that by their nature
are difficult to evaluate and cannot be
‘‘readily and clearly identifiable’’ as
genuine.
The third category of proposed
revisions clarifies the roles and
responsibilities of the United States
Mint and participants. For example, the
proposed revisions clarify under what
circumstances a participant will have
the opportunity to retrieve a rejected
shipment, and under what
circumstances an entire submission will
be turned over to law enforcement
authorities. The purpose is to clearly
put members of the public on notice of
the potential consequences of
submitting coins for examination that
are prohibited from redemption. For
example, if a submission contains
counterfeit coins, the United States Mint
will turn the entire submission over to
law enforcement.

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III. Procedural Analysis
Regulatory Planning and Review
The Office of Management and Budget
has determined that this proposed rule
does not constitute a ‘‘significant
regulatory action’’ under Executive
Order 12866 or Executive Order 13771.
Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C.
3507(d)) (PRA), the United States Mint
is seeking approval for a new
information collection of data and
reporting requirements applicable to
participants seeking to redeem bent or
partial coins. The proposed collection of
information described in this notice of
proposed rulemaking has been
submitted to the Office of Management
and Budget (OMB) for review in
accordance with the PRA under OMB
No. 1525–NEW.
Comments on the collection of
information should be sent to the Office
of Management and Budget, Attn: Desk
Officer for the Department of the
Treasury, Office of Information and
Regulatory Affairs, Washington, DC
20503, or via email to OIRA_
[email protected], with copies
to Mutilated Coin Redemption Program;
Manufacturing Directorate; United
States Mint, 801 9th Street NW,
Washington, DC 20220. Comments on
the collection of information should be
received by July 6, 2021.
In accordance with 5 CFR
1320.8(d)(1), the Department of the
Treasury is soliciting comments from
members of the public concerning this
collection of information to:
(1) Evaluate whether the proposed
collection of information is necessary
for the proper performance of the
functions of the agency, including
whether the information will have
practical utility;
(2) Evaluate the accuracy of the
agency’s estimate of the burden of the
proposed collection of information;
(3) Enhance the quality, utility, and
clarity of the information to be
collected; and
(4) Minimize the burden of the
collection of information on those who
are to respond, including through the
use of appropriate automated collection
techniques or other forms of information
technology.
The form for OMB No. 1525–NEW
proposed in the information collection
rulemaking is as follows:
United States Mint Mutilated Coin
Redemption Program Instructions and
Application Form, Mint Form MF 6006:

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Federal Register / Vol. 86, No. 85 / Wednesday, May 5, 2021 / Proposed Rules
The burden of the information
collections in this proposed rule is
estimated as follows:
Estimated total annual reporting and/
or recordkeeping burden: 200 hours.
Estimated average annual burden per
respondent: 1 hour.
Estimated number of respondents:
200.
Estimated annual frequency of
responses: Annually.
Under the PRA, an agency may not
conduct or sponsor, and a person is not
required to respond to, a collection of
information unless it displays a valid
control number assigned by the Office of
Management and Budget.
Regulatory Flexibility Act Analysis
It is hereby certified that the proposed
revisions will not have a significant
economic impact on a substantial
number of small entities. First and
foremost, 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, the number of entities
tendering significant quantities of coins
for redemption is small. A large number
of entities redeeming coins are
individuals. A wide variety of
businesses, such as municipal entities,
recyclers, coin processors, amusement
parks, auto shops, and waste
management companies, also have
applied for coins to be redeemed in the
past. With the proposed limit of 1,000
lbs. per month, that is, at most,
equivalent to $240,000 a year. In Fiscal
Years (FY) 2014, 2013, and 2012, the
United States Mint paid only nine
entities more than $240,000. In FY 2011,
there were 14, and FY 2010 there were
12. With respect to the proposed ban on
coins imported from outside the United
States, about 20 applicants listed
‘‘overseas’’ as the source of their coins
on their applications submitted from
2018 to 2019. With respect to the
proposed ban on coins that have been
through industrial processes, about 20
applicants listed ‘‘recycling’’ as the
source of their coins on their
applications submitted from 2018 to
2019.
Even if each entity qualified as a
‘‘small entity’’ within the meaning of 5
U.S.C. 605(b), based on a review of past
applications as described above, the
United States Mint does not believe that
the proposed revisions are likely to have
a significant economic impact. The
proposed rule does not change the
redemption rates. Moreover, the
regulations already require coins to be
readily and clearly identifiable as to
genuineness and denomination. The

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proposed revisions seek to provide
guidance from the United States Mint’s
experience of coins that by their nature
are difficult to evaluate and cannot be
‘‘readily and clearly identifiable’’ as
genuine. Notwithstanding this
certification, the United States Mint
invites comments on the impacts this
rule may have on small entities.
IV. Request for Comment
Before the proposed revisions to the
Treasury Regulations at 31 CFR part
100, subpart C, are adopted as final
regulations, the United States Mint will
consider any comments that are
submitted to the bureau as prescribed in
this preamble under the DATES and
ADDRESSES sections. The United States
Mint and the Department of the
Treasury request comments on all
aspects of the proposed revisions to
these regulations, including the effects
on stakeholders of the 1,000 lb. monthly
limit and suggestions for alternative
ways to achieve a balance between
providing for the removal of bent or
partial coins, cost, and prevention of
fraud.
List of Subjects in 31 CFR Part 100
Coins.
Words of Issuance
For the reasons set forth in the
preamble, the United States Mint
proposes to amend 31 CFR part 100 as
follows:
PART 100—EXCHANGE OF PAPER
CURRENCY AND COIN
1. The authority for part 100
continues to read as follows:

■

Authority: 31 U.S.C. 321.

2. Subpart C is revised 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.
§ 100.10 Request for examination of
uncurrent coin for possible redemption.

(a) Definition. Uncurrent coins are
whole U.S. coins that 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

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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
§ 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.
§ 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 that 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 that 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 completed 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

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Federal Register / Vol. 86, No. 85 / Wednesday, May 5, 2021 / Proposed Rules

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 will be required to
provide information for how the
participant came into custody of the
bent or partial coins. The United States
Mint reserves the right to request
additional information.
(4) The United States Mint reserves
the right to test samples from any
submission to authenticate the
genuineness of the coins. 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 to verify
information provided to the United
States Mint.
(6) Each participant is limited to
submitting no more than 1,000 lbs. of
coins per month.
(7) No redemption will be made
when:
(i) A submission contains any
counterfeit coins;
(ii) A submission demonstrates a
pattern of systematic or intentional
mutilation or demonstrates an attempt
to defraud the United States;
(iii) A submission appears to be part
of, or intended to further, any criminal
activity;
(iv) A submission contains a material
misrepresentation of facts;
(v) Material presented is not
identifiable as United States coins;
(vi) A submission contains any
contaminant that could render the coins
unsuitable for coinage metal or contains
hazardous materials;
(vii) A submission contains more than
a nominal amount of uncurrent coins;
(viii) A submission contains coins
imported from outside of the United
States; or
(ix) A submission, contains coins
damaged in industrial or recycling
processes (such as shredders,
burnishers, incinerators, exposure to
elevated temperatures), or coins that
have been drilled, punctured, ground,
polished, etched, or chemically treated.
(8) If redemption is denied on the
basis of paragraph (c)(7)(i), (ii), (iii), or
(iv) of this section, the entire
submission will be turned over to law
enforcement authorities. Counterfeit
coins and the entire submission may be
subject to forfeiture under 18 U.S.C.
492.
(9) If redemption is denied on the
basis of paragraph (c)(7)(v), (vi), (vii),
(viii), or (ix) of this section, the

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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.
(10) 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 denomination 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 HalfDollar 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
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 by the
United States Mint 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,
and the participant may be required to
send the shipment directly to the
authorized recycler(s) of the United
States Mint.

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§ 100.12

Exchange of fused or mixed coin.

(a) Definitions. (1) Fused coins are
U.S. coins that are melted to the extent
that they are bonded together.
(2) Mixed coins are U.S. coins of
several alloy categories that 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
§ 100.11(d)(2).
§ 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) Notwithstanding any other
provision of this subpart, the Director of
the United States Mint may provide
information pertaining to any bent or
partial coin submissions, or turn over
the entire submission, 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.
John F. Schorn,
Chief Counsel, United States Mint.
[FR Doc. 2021–09338 Filed 5–4–21; 8:45 am]
BILLING CODE 4810–37–P

DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 117
[Docket No. USCG–2020–0033]
RIN 1625–AA09

Drawbridge Operation Regulation:
Rainy River, Rainy Lake and Their
Tributaries, Rainier, MN
Coast Guard, DHS.
Notice of proposed rulemaking.

AGENCY:
ACTION:

The Coast Guard proposes to
authorize the Canadian National
Railroad Bridge, mile 85.0, across the
Rainy River to operate remotely. The

SUMMARY:

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