Text: H.R.5818 — 109th Congress (2005-2006)All Bill Information (Except Text)

There is one version of the bill.

Text available as:

Shown Here:
Introduced in House (07/17/2006)


109th CONGRESS
2d Session
H. R. 5818

To modernize the legal tender of the United States, and for other purposes.


IN THE HOUSE OF REPRESENTATIVES
July 17, 2006

Mr. Kolbe introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned


A BILL

To modernize the legal tender of the United States, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. Short title; table of contents.

(a) Short title.—This Act may be cited as the “Currency Overhaul for an Industrious Nation (COIN) Act”.

(b) Table of contents.—The table of contents for this Act is as follows:


Sec. 1. Short title; table of contents.

Sec. 2. Redesign and issuance of commemorative circulating $2 Federal reserve notes.

Sec. 3. Cash transaction rounding.

Sec. 4. Clarification of existing law regarding inclusion of seigniorage in budget.

Sec. 5. Recognition of market demand for $1 circulating coin.

Sec. 6. Study on alternative metal compositions for circulating coins.

Sec. 7. Study of effects of increasingly cashless economy on the budget and monetary policy.

Sec. 8. Transfer of the United States Mint and Bureau of Engraving and Printing to the Federal Reserve Board.

Sec. 9. Paper for currency.

Sec. 10. Obsolete coins.

Sec. 11. Issuance of redesigned quarter dollars honoring the District of Columbia and each of the territories.

SEC. 2. Redesign and issuance of commemorative circulating $2 Federal reserve notes.

(a) In general.—Notwithstanding the authority of the Secretary of the Treasury under the 8th undesignated paragraph of section 16 of the Federal Reserve Act, during the 5-year period beginning January 1, 2007, the reverse of $2 Federal reserve notes issued or otherwise placed into circulation by any Federal reserve bank shall have such designs and be in such form and tenor as the Secretary may select in accordance with this section.

(b) Issuance of new design each year.—A new design shall be selected for $2 Federal reserve notes issued or otherwise placed into circulation by any Federal reserve bank during each year of the 5-year period referred to in subsection (a).

(c) Selection of design.—

(1) IN GENERAL.—Each of the 5 designs required under this section for $2 Federal reserve notes shall—

(A) be emblematic of the history of the United States; and

(B) be selected by the Secretary of the Treasury, after consultation with the Commission of Fine Arts.

(2) PROHIBITION ON CERTAIN REPRESENTATIONS.—No portrait of a living person may be included in the design of any $2 Federal reserve note under this subsection.

(d) Production.—Except as provided in subsection (a), the 8th undesignated paragraph of section 16 of the Federal Reserve Act shall apply to all $2 Federal reserve notes to which this section applies.

(e) Return to other design.—After the end of the 5-year period referred to in subsection (a), the $2 Federal reserve note shall bear such design, and be in such form and tenor, as may determined to be appropriate in accordance with the 8th undesignated paragraph of section 16 of the Federal Reserve Act, except that, in making any determination with regard to design, the Secretary of the Treasury shall take into account the 5 designs selected for such 5-year period and shall give such designs priority in making the final determination.

SEC. 3. Cash transaction rounding.

(a) Rounding of cash transaction values to nearest 5 cents required.—Notwithstanding any other provision of law, any person selling goods or services shall determine the total cash transaction value of such goods or services in the following manner:

(1) TOTAL TRANSACTION VALUES.—The transaction values of goods and services shall be totaled, any discount or deduction therefor made, and sales tax or other tax imposed, if any, added to that total in accordance with the law of the State in which such goods or services are sold.

(2) ROUNDING.—

(A) ROUNDING DOWN.—If the resulting sum ends with 1 cent, 2 cents, 6 cents, or 7 cents as the final digit, the amount of cents in the sum shall be rounded down to the nearest amount divisible by 5 for those individuals seeking to make payment with legal tender.

(B) ROUNDING UP.—If the resulting sum ends with 3 cents, 4 cents, 8 cents, or 9 cents as the final digit, the amount of cents in the sum shall be rounded up to the nearest amount divisible by 5 for any person seeking to make payment with legal tender.

(b) Exception.—The provisions of subsection (a)(2) shall not apply to—

(1) transactions the total amount of which is 2 cents or less, or

(2) transactions for which payment is made by any demand or negotiable instrument, electronic fund transfer, money order, credit card, or other like instrument.

(c) No effect on legal tender.—All coins and currencies of the United States, regardless of when coined, printed, or issued, shall continue to be legal tender for all debts, public and private, public charges, taxes, duties, and dues, in accordance with law.

(d) Coordination with certain State or local tax laws.—Any tax imposed by any State or municipal taxing authority shall not apply to gains or losses resulting from rounding.

(e) Numismatic items.—The Secretary of the Treasury may produce so many 1-cent pieces as the Secretary determines are sufficient to include in uncirculated sets, proof sets, and other collector sets as, from time to time, the Secretary shall determine.

(f) Effective date.—

(1) IN GENERAL.—Except as provided in paragraph (2), this section shall take effect at the end of the 180-day period beginning on the date of the enactment of this Act.

(2) DELAYED EFFECTIVE DATE.—If the end of the 180-day period referred to in paragraph (1) occurs during the 3-month period beginning on November 1 of any year, this section shall take effect on February 1 of the year immediately following such year.

(g) Rule of construction.—No provision of this section shall be construed as evidence of any intention to eliminate the pricing of goods or services to the nearest cent or mill or to alter the amount of sales tax collected or paid to any State or municipal taxing authority.

SEC. 4. Clarification of existing law regarding inclusion of seigniorage in budget.

The 9th proviso of section 522 of Public Law 104–52 (31 U.S.C. 5136) is amended by inserting “and such amount shall be included as an estimated receipt of the Government and a receipt of the Government under paragraphs (6) and (7), respectively, of section 1105(a) of title 31, United States Code, in any budget submitted under such section” before the colon after “miscellaneous receipts”.

SEC. 5. Recognition of market demand for $1 circulating coin.

(a) Transition period.—Federal reserve banks may continue to place into circulation $1 Federal reserve notes until the date as of which the number of $1 coins placed in circulation in each of 2 preceding calendar years equals or exceeds 1,000,000,000.

(b) Post-transition period.—After the date referred to in subsection (a), a Federal reserve bank may not order or place into circulation any $1 Federal reserve note.

(c) Exception.—Notwithstanding subsection (b), the Board of Governors of the Federal Reserve System shall produce only such Federal reserve notes of $1 denomination as the Board determines from time to time are appropriate to meet the needs of collectors of that denomination. Such notes shall be issued by 1 or more Federal reserve banks in accordance with section 16 of the Federal Reserve Act and sold by the Board, in whole or in part, under procedures prescribed by the Board.

SEC. 6. Study on alternative metal compositions for circulating coins.

(a) Study required.—The Comptroller General shall conduct a study on the feasibility, practicality, and cost-effectiveness of using alternative metal compositions for circulating United States coins.

(b) Issues.—In conducting the study under subsection (a), the Comptroller General shall include—

(1) a study of the metal compositions of coins produced and issued by other countries and economic unions and the minting practices of such countries and unions; and

(2) an analysis of the costs to consumers and business that may result from any changes in the metal composition of United States coin, including transition costs, and the methods available for timing any such transition to minimize such costs.

(c) Report.—Before the end of the 270-day period beginning on the date of the enactment of this Act, the Comptroller General shall submit a report to the Congress on the findings and conclusions with respect to the study conducted under subsection (a), together with such recommendations for legislative or administration action as the Comptroller General may determine to be appropriate.

SEC. 7. Study of effects of increasingly cashless economy on the budget and monetary policy.

(a) Study required.—The Comptroller General shall conduct a study of the effects of a drastic and relatively sudden decrease in the public use of circulating coins and currency on the budget of the Federal Government and the conduct of monetary policy.

(b) Consultation.—In conducting the study under subsection (a), the Comptroller General shall consult with the Director of the Office of Management and Budget and the Board of Governors of the Federal Reserve System to the greatest extent possible.

(c) Report required.—Before the end of the 1-year period beginning on the date of the enactment of this Act, the Comptroller General shall submit a report to the Committee on Financial Services and the Committee on the Budget of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs and the Committee on the Budget of the Senate on the findings and conclusion of the Comptroller General with respect to the study conducted pursuant to subsection (a), together with any comments the Director of the Office of Management and Budget or the Board of Governors of the Federal Reserve System may choose to include, and any recommendations for legislative or administrative action the Comptroller General, the Director, or the Board may determine to be appropriate.

SEC. 8. Transfer of the United States Mint and Bureau of Engraving and Printing to the Federal Reserve Board.

(a) Transfer of Bureau of Engraving and Printing.—Section 303 of title 31, United States Code—

(1) is transferred from title 31, United States Code, and inserted in the Federal Reserve Act after section 16 of such Act;

(2) is redesignated as section 16A of the Federal Reserve Act; and

(3) is amended—

(A) in subsection (a), by striking “in the Department of the Treasury” and inserting “in the Federal Reserve System”; and

(B) in subsection (b)—

(i) by striking “Secretary of the Treasury” and inserting “Board of Governors of the Federal Reserve System”; and

(ii) by striking “Secretary” where such term appears in paragraphs (1) and (2) of such subsection and inserting “Board of Governors of the Federal Reserve System”.

(b) Transfer of United States Mint.—Section 304 of title 31, United States Code—

(1) is transferred from title 31, United States Code, and inserted in the Federal Reserve Act after section 16A of such Act (as designated by subsection (a)(2) of this section);

(2) is redesignated as section 16B of the Federal Reserve Act; and

(3) is amended—

(A) in subsection (a), by striking “in the Department of the Treasury” and inserting “in the Federal Reserve System”; and

(B) in subsection (b)(2), by striking “Secretary of the Treasury” and inserting “Board of Governors of the Federal Reserve System”.

(c) Transfer of assets and liabilities.—The Director of the Office of Management and Budget shall—

(1) oversee the transfer of the United States Mint and the Bureau of Engraving and Printing from the Department of the Treasury to the Federal Reserve System (as provided by the amendments made by subsection (a) and (b));

(2) arrange for the accounting for, and transfer of, all assets and liabilities and all operational and management responsibilities, including obligations with respect to officers and employees, from the Secretary to the Board in connection with the transfer described in paragraph (1); and

(3) before the end of the 6-month period beginning on the date of the enactment of this Act and after consulting with the Secretary of the Treasury and the Board of Governors of the Federal Reserve System, provide a report to the Congress on all further technical and conforming amendments to Federal law that are appropriate to fully effectuate such transfer in accordance with subsection (d).

(d) Distributive principles.—The transfer of assets and liabilities and operational and management responsibilities and the preparation of further technical and conforming amendments under subsection (c) shall be based on the following principles and the amendments made by subsection (e):

(1) The Secretary of the Treasury shall have the responsibility for the design, including inscriptions, of all United States circulating coins, numismatic items, and national medals authorized by an Act of Congress.

(2) The Board of Governors of the Federal Reserve System shall have the responsibility for the administration of the bureau of the United States Mint, each United States mint, and the Bureau of Engraving and Printing and all operations and productions of such entities.

(3) The Bureau of Engraving and Printing shall continue to produce United States bonds, bonds of United States territories, and other security documents and checks for the Secretary of the Treasury and any other Federal agency or establishment as may be agreed upon by the Secretary and the Board of Governors of the Federal Reserve System.

(4) The United States Mint and the United States mints shall continue to produce all United States circulating coins, numismatic items, and national medals authorized by an Act of Congress and the devices, models, hubs, and dies for such coins, numismatic items, and medals.

(e) Technical and conforming amendments.—

(1) Section 5111 of title 31, United States Code, is amended—

(A) in subsection (a)—

(i) by striking “Secretary of the Treasury” and inserting “Board of Governors of the Federal Reserve System (hereafter in this section referred to as the ‘Board’)”;

(ii) by striking “Secretary” where such term appears in paragraph (1) and inserting “Board”; and

(iii) by inserting “which have been authorized by an Act of Congress” after—

(I) “national and other medals” where such term appears in paragraph (2); and

(II) “numismatic items” where such term appears in paragraph (3);

(B) by striking subsection (b) and inserting the following:

“(b) [Repealed].—”; and

(C) in subsection (c), by striking “Secretary” each place such term appears and inserting “Board”.

(2) Section 5112 of title 31, United States Code, is amended—

(A) in that portion of subsection (a) that precedes paragraph (1) of such subsection by striking “The Secretary of the Treasury may mint and issue only the following coins:” and inserting “Except as provided by any other Federal law, only the following coins may be minted and issued as United States coins:”;

(B) in subsections (b), (c), (e), (f), and (i) (other than paragraph (4)(A) of subsection (i)), by striking “Secretary” each place such term appears and inserting “Board”;

(C) in subsection (d)(2)—

(i) by striking “devices, models, hubs, and dies for coins, emblems, devices, inscriptions, and designs” where such term appears in the 1st sentence and inserting “inscriptions and designs for coins”;

(ii) by striking “or models of emblems” and “or devices” each place such terms appear in the 2nd sentence; and

(iii) by striking “or die” where such term appears in the 3rd sentence; and

(D) in subsection (d), by inserting after paragraph (2) the following new paragraph:

“(3) PREPARATION OF DEVICES, MODELS, HUBS, AND DIES.—The Board of Governors of the Federal Reserve System shall prepare the devices, models, hubs, and dies for coins, emblems, and devices authorized under this chapter on the basis of designs selected by the Secretary in accordance with paragraph (2). The Board may procure services under section 3109 of title 5 in carrying out this paragraph.”.

(3) Section 5114 of title 31, United States Code, is amended—

(A) in subsection (a)(1)—

(i) by striking “Secretary of the Treasury” and inserting “Board of Governors of the Federal Reserve System (hereafter in this section referred to as the ‘Board’)”;

(ii) by striking “Department of the Treasury” and inserting “Federal Reserve System”; and

(iii) by striking “outside the Department” and inserting “outside the Federal Reserve System”; and

(B) by striking “Secretary of the Treasury” and “Secretary” each place such terms appear in such section, other than subsection (b) or in connection with the term amended by subparagraph (A)(i) of this paragraph, and inserting “Board”.

(4) Section 5116 of title 31, United States Code, is amended—

(A) in subsection (a)(1), by striking “Secretary of the Treasury” and inserting “Board of Governors of the Federal Reserve System (hereafter in this section referred to as the ‘Board’)”; and

(B) by striking “Secretary” each place such term appears (other than in connection with the term amended by subparagraph (A)) and inserting “Board”.

(5) Section 5120 of title 31, United States Code, is amended—

(A) in subsection (a)(1), by striking “Secretary of the Treasury” and inserting “Board of Governors of the Federal Reserve System (hereafter in this section referred to as the ‘Board’)”;

(B) by striking “Secretary” each place such term appears (other than in connection with the term amended by subparagraph (A)) and inserting “Board”; and

(C) by striking paragraph (2).

(6) Section 5121 of title 31, United States Code, is amended—

(A) in subsection (a), by striking “Secretary of the Treasury” and inserting “Board of Governors of the Federal Reserve System (hereafter in this section referred to as the ‘Board’)”; and

(B) by striking “Secretary” each place such term appears (other than in connection with the term amended by subparagraph (A)) and inserting “Board”.

(7) Section 5122 of title 31, United States Code, is amended—

(A) in subsection (a), by striking “Secretary of the Treasury” and inserting “Board of Governors of the Federal Reserve System (hereafter in this section referred to as the ‘Board’)”; and

(B) by striking “Secretary” each place such term appears (other than in connection with the term amended by subparagraph (A)) and inserting “Board”.

(8) Section 5131 of title 31, United States Code, is amended—

(A) in subsection (a), by striking “The United States Mint has— ” and inserting “The Board of Governors of the Federal Reserve System shall maintain the following facilities:”;

(B) in subsection (b), by striking “Secretary of the Treasury” and “Secretary” each place such terms appear in such subsection and inserting “Board”.

(9) Section 5132 of title 31, United States Code, is amended—

(A) in subsection (a)(1)—

(i) by striking the 1st 2 sentences;

(ii) by striking “Secretary of the Treasury” the first place such term appear (other than in any sentence struck under clause (i)) and inserting “Board of Governors of the Federal Reserve System (hereafter in this section referred to as the ‘Board’)”; and

(iii) by striking “Secretary” each place such term appears (other than the place amended by subparagraph (B)) and inserting “Board”.

(10) Section 5134(f) of title 31, United States Code, is amended by striking “Secretary” each place such term appears in such subsection and inserting “Board”.

(11) Section 5136 of title 31, United States Code, is amended—

(A) by striking “Secretary of the Treasury” the first place such term appears in such section and inserting “Board of Governors of the Federal Reserve System (hereafter in this section referred to as the ‘Board’)”; and

(B) by striking “Secretary of the Treasury” and “Secretary” each place such terms appear in such section (other than the place amended by subparagraph (A)) and inserting “Board”.

(12) Section 5141 of title 31, United States Code, is amended—

(A) in subsection (a), by striking “Secretary of the Treasury” and inserting “Board of Governors of the Federal Reserve System (hereafter in this section referred to as the ‘Board’)”; and

(B) in subsection (b), by striking “Secretary” and inserting “Board”.

(13) Section 5142 of title 31, United States Code, is amended—

(A) in subsection (a), by striking “Department of the Treasury” and inserting “Secretary of the Treasury”; and

(B) by striking “Secretary” each place such term appears and inserting “Board”.

(14) Section 5143 of title 31, United States Code, is amended—

(A) by striking “Secretary of the Treasury” and inserting “Board of Governors of the Federal Reserve System (hereafter in this section referred to as the ‘Board’)”; and

(B) by striking “Secretary” each place such term appears in such section (other than the place amended by subparagraph (A) and in connection with a reference to the Secretary of State) and inserting “Board”.

(15) The 8th undesigned paragraph of section 16 of the Federal Reserve Act (12 U.S.C. 418) is amended by striking “Secretary of the Treasury” each place such term appears and inserting “Board”.

(16) The 9th undesigned paragraph of section 16 of the Federal Reserve Act (12 U.S.C. 419) is amended to read as follows:

“(9) CUSTODY OF UNISSUED NOTES.—The Board shall retain custody of notes prepared under the preceding paragraph for delivery in accordance with this Act.”.

(17) The 10th undesignated paragraph of section 16 of the Federal Reserve Act (12 U.S.C. 420) is amended by striking “Secretary of the Treasury” and inserting “Board”.

(f) Savings provisions.—

(1) EXISTING RIGHTS, DUTIES, AND OBLIGATIONS NOT AFFECTED.—The enactment of this section shall not affect the validity of any right, duty, or obligation of the United States, the bureau of the United States Mint, the Bureau of Engraving and Printing, any officer or employee of such Mint or Bureau, or any other person.

(2) CONTINUATION OF SUITS.—No action or other proceeding commenced by or against the Secretary of the Treasury with respect to any function of the Secretary which was transferred to the Board of Governors of the Federal Reserve System under this section shall abate by reason of the enactment of this Act, except that the Board shall be substituted for the Secretary as a party to any such action or proceeding.

(3) CONTINUATION OF ORDERS, RESOLUTIONS, DETERMINATIONS, AND REGULATIONS.—All orders, resolutions, determinations, and regulations, which have been issued, made, prescribed, or allowed to become effective by the Secretary of the Treasury under section 303 or 304 of title 31, United States Code, or subchapter II, III, or IV of chapter 51 of such title which relate to matters, actions, functions, or personnel transferred to the Board of Governors of the Federal Reserve System under this section shall continue in effect according to the terms of such orders, resolutions, determinations, and regulations and shall be enforceable by or against the Board of Governors of the Federal Reserve System, until modified, terminated, set aside, or superseded in accordance with applicable law.

(4) EMPLOYEE RIGHTS AND BENEFITS.—Notwithstanding paragraph (1), the Board of Governors of the Federal Reserve System may transfer the officers and employees referred to in such paragraph to the pay and benefit plans of the Board, to the extent that no interest of any such officer or employee is adversely affected by any such transfer.

SEC. 9. Paper for currency.

After the date of the enactment of this Act, no contract may be entered into for the acquisition of paper for the production of Federal reserve notes unless the contract specifies that all the paper deliverable under the contract must be produced entirely within the United States.

SEC. 10. Obsolete coins.

(a) In general.—At least 60 days before the date of the transfer of the Bureau of the Mint to the Board of Governors of the Federal Reserve System, under section 6(c) is finalized, and after consultation with the Board of Governors of the Federal Reserve System and the submission of notice to the Congress, the Secretary of the Treasury shall declare to be obsolete any circulating $1 coin that bears the design of the $1 coins being issued immediately before the issuance of coins with the design referred to in section 5112(n)(7) of title 31, United States Code.

(b) Rule of construction.—Any coins described in subsection (a) that are declared to be obsolete—

(1) shall be treated in the same manner as all other obsolete United States coins, and

(2) to the extent such coins remain in general circulation, shall remain legal tender.

SEC. 11. Issuance of redesigned quarter dollars honoring the District of Columbia and each of the territories.

Section 5112 of title 31, United States Code, is amended by inserting after subsection (m) the following new subsection:

“(n) Redesign and issuance of circulating quarter dollar honoring the District of Columbia and each of the territories.—

“(1) REDESIGN IN 2009.—

“(A) IN GENERAL.—Notwithstanding the fourth sentence of subsection (d)(1) and subsection (d)(2) and subject to paragraph (6)(B), quarter dollar coins issued during 2009, shall have designs on the reverse side selected in accordance with this subsection which are emblematic of the District of Columbia and the territories.

“(B) FLEXIBILITY WITH REGARD TO PLACEMENT OF INSCRIPTIONS.—Notwithstanding subsection (d)(1), the Secretary may select a design for quarter dollars issued during 2009 in which—

“(i) the inscription described in the second sentence of subsection (d)(1) appears on the reverse side of any such quarter dollars; and

“(ii) any inscription described in the third sentence of subsection (d)(1) or the designation of the value of the coin appears on the obverse side of any such quarter dollars.

“(2) SINGLE DISTRICT OR TERRITORY DESIGN.—The design on the reverse side of each quarter dollar issued during 2009 shall be emblematic of one of the following: The District of Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa, the United States Virgin Islands, and the Commonwealth of the Northern Mariana Islands.

“(3) SELECTION OF DESIGN.—

“(A) IN GENERAL.—Each of the 6 designs required under this subsection for quarter dollars shall be—

“(i) selected by the Secretary after consultation with—

“(I) the chief executive of the District of Columbia or the territory being honored, or such other officials or group as the chief executive officer of the District of Columbia or the territory may designate for such purpose; and

“(II) the Commission of Fine Arts; and

“(ii) reviewed by the Citizens Coinage Advisory Committee.

“(B) SELECTION AND APPROVAL PROCESS.—Designs for quarter dollars may be submitted in accordance with the design selection and approval process developed by the Secretary in the sole discretion of the Secretary.

“(C) PARTICIPATION.—The Secretary may include participation by District or territorial officials, artists from the District of Columbia or the territory, engravers of the United States Mint, and members of the general public.

“(D) STANDARDS.—Because it is important that the Nation’s coinage and currency bear dignified designs of which the citizens of the United States can be proud, the Secretary shall not select any frivolous or inappropriate design for any quarter dollar minted under this subsection.

“(E) PROHIBITION ON CERTAIN REPRESENTATIONS.—No head and shoulders portrait or bust of any person, living or dead, and no portrait of a living person may be included in the design of any quarter dollar under this subsection.

“(4) TREATMENT AS NUMISMATIC ITEMS.—For purposes of sections 5134 and 5136, all coins minted under this subsection shall be considered to be numismatic items.

“(5) ISSUANCE.—

“(A) QUALITY OF COINS.—The Secretary may mint and issue such number of quarter dollars of each design selected under paragraph (4) in uncirculated and proof qualities as the Secretary determines to be appropriate.

“(B) SILVER COINS.—Notwithstanding subsection (b), the Secretary may mint and issue such number of quarter dollars of each design selected under paragraph (4) as the Secretary determines to be appropriate, with a content of 90 percent silver and 10 percent copper.

“(C) TIMING AND ORDER OF ISSUANCE.—Coins minted under this subsection honoring the District of Columbia and each of the territories shall be issued in equal sequential intervals during 2009 in the following order: the District of Columbia, the Commonwealth of Puerto Rico, Guam, American Samoa, the United States Virgin Islands, and the Commonwealth of the Northern Mariana Islands.

“(6) OTHER PROVISIONS.—

“(A) APPLICATION IN EVENT OF ADMISSION AS A STATE.—If the District of Columbia or any territory becomes a State before the end of the 10-year period referred to in subsection (l)(1), subsection (l)(7) shall apply, and this subsection shall not apply, with respect to such State.

“(B) APPLICATION IN EVENT OF INDEPENDENCE.—If any territory becomes independent or otherwise ceases to be a territory or possession of the United States before quarter dollars bearing designs which are emblematic of such territory are minted pursuant to this subsection, this subsection shall cease to apply with respect to such territory.

“(7) TERRITORY DEFINED.—For purposes of this subsection, the term ‘territory’ means the Commonwealth of Puerto Rico, Guam, American Samoa, the United States Virgin Islands, and the Commonwealth of the Northern Mariana Islands.”.