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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 facilitys 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 Mints 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.
3507d 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. 1525NEW.
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_
Submission@omb.eop.gov, 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
1320.8d1, 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 agencys 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. 1525NEW
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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