H.R. 1270: 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 proposes several actions regarding the production and use of the penny (one-cent coin) and nickel (five-cent coin) in the United States. Here are the key components of the legislation:

1. Temporary Suspension of Production

The bill mandates that the Secretary of the Treasury will stop producing one-cent and five-cent coins for a period of ten years after the bill is enacted. This is aimed at saving taxpayer money by ceasing the production of these coins.

2. Exception for Numismatic Needs

Even though the production of pennies and nickels will be suspended, there is an exception for numismatic purposes. This means that:

• The Secretary may still produce these coins if needed for collectors.
• Any coins made for collectors will be sold under rules that differ from those for coins meant for everyday circulation.
• The revenue from these sales must cover production costs.

3. Legal Tender Status

The bill clarifies that, despite the suspension of their production, pennies and nickels remain legal tender in the United States. This means they can still be used to settle debts and other payments, regardless of when they were minted.

4. Study on the Effects of Suspension

The bill requires a study to be conducted by the Comptroller General of the United States, in consultation with various financial authorities, to evaluate the outcomes of halting coin production. This study must be completed within three years and will include:

• Analysis of the financial savings resulting from the suspension.
• Assessment of the potential impact of rounding cash prices to the nearest ten cents.
• Recommendations on whether to continue the suspension, make it permanent, or reinstate production.

Relevant Companies

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