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H.R. 4846 (107th): Silver Eagle Coin Continuation Act of 2002


The text of the bill below is as of Jun 26, 2002 (Referred to Senate Committee). The bill was not enacted into law.


HR 4846 RFS

107th CONGRESS

2d Session

H. R. 4846

IN THE SENATE OF THE UNITED STATES

June 26, 2002

Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs


AN ACT

To amend title 31, United States Code, to clarify the sources of silver for bullion coins, 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.

    This Act may be cited as the ‘Silver Eagle Coin Continuation Act of 2002’.

SEC. 2. DELETION OF LIMITATION ON ACQUISITION OF SILVER FOR $1 COIN FROM ABOLISHED STOCK PILE.

    (a) FINDINGS- The Congress finds that--

      (1) the American Eagle silver bullion coin leads the global market, and is the largest and most popular silver coin program in the United States;

      (2) established in 1986, the American Eagle silver bullion program is the most successful silver bullion program in the world;

      (3) from fiscal year 1995 through fiscal year 2001, the American Eagle silver bullion program generated--

        (A) revenues of $264,100,000; and

        (B) sufficient profits to significantly reduce the national debt;

      (4) with the depletion of silver reserves in the Defense Logistic Agency’s Strategic and Critical Materials Stockpile, it is necessary for the Department of the Treasury to acquire silver from other sources in order to preserve the American Eagle silver bullion program;

      (5) with the ability to obtain silver from other sources, the United States Mint can continue the highly successful American Eagle silver bullion program, exercising sound business judgment and market acquisition practices in its approach to the silver market, resulting in continuing profitability of the program;

      (6) in 2001, silver was commercially produced in 12 States, including, Alaska, Arizona, California, Colorado, Idaho, Missouri, Montana, Nevada, New Mexico, South Dakota, Utah, and Washington;

      (7) Nevada is the largest silver producing State in the Nation, producing--

        (A) 17,500,000 ounces of silver in 2001; and

        (B) 34 percent of United States silver production in 2000;

      (8) the mining industry in Idaho is vital to the economy of the State, and the Silver Valley in northern Idaho leads the world in recorded silver production, with over 1,100,000,000 ounces of silver produced between 1884 and 2001;

      (9) the largest, active silver producing mine in the Nation is the McCoy/Cove Mine in Nevada, which produced more than 107,000,000 ounces of silver between 1989 and 2001;

      (10) the mining industry in Idaho--

        (A) employs more than 3,000 people;

        (B) contributes more than $900,000,000 to the Idaho economy; and

        (C) produces $70,000,000 worth of silver per year;

      (11) the silver mines of the Comstock lode, the premier silver producing deposit in Nevada, brought people and wealth to the region, paving the way for statehood in 1864, and giving Nevada its nickname as ‘the Silver State’;

      (12) mines in the Silver Valley--

        (A) represent an important part of the mining history of Idaho and the United States; and

        (B) have served in the past as key components of the United States war effort; and

      (13) silver has been mined in Nevada throughout its history, with every significant metal mining camp in Nevada producing some silver.

    (b) IN GENERAL- Section 5116(b)(2) of title 31, United States Code, is amended--

      (1) in the 1st sentence, by striking ‘, except silver transferred’ and all that follows through the period at the end of such sentence and inserting ‘or may obtain silver from other sources as appropriate.’; and

      (2) by striking the 2nd sentence.

    (b) STUDY REQUIRED-

      (1) STUDY- The Secretary of the Treasury shall conduct a study of the impact on the United States silver market of the coins minted and issued under section 5112(e) of title 31, United States Code.

      (2) REPORT- Not later than 1 year after the date of enactment of this Act, the Secretary of the Treasury shall submit a report of the study conducted under paragraph (1) to the chairman and ranking minority member of--

        (A) the Committee on Banking, Housing, and Urban Affairs of the Senate; and

        (B) the Committee on Financial Services of the House of Representatives.

    (c) ANNUAL REPORT-

      (1) IN GENERAL- The Director of the United States Mint shall prepare and submit to the Congress an annual report on the purchases of silver made by the Secretary of the Treasury under section 5116 of title 31, United States Code, on behalf of the United States Mint.

      (2) CONCURRENT SUBMISSION- The report required by paragraph (1) may be incorporated into the annual report of the Director of the United States Mint on the operations of the mint and assay offices, referred to in section 1329 of title 44, United States Code.

SEC. 3. CLARIFICATION OF EXISTING LAW.

    (a) IN GENERAL- Section 5134(f)(1) of title 31, United States Code, is amended to read as follows:

      ‘(1) PAYMENT OF SURCHARGES-

        ‘(A) IN GENERAL- Notwithstanding any other provision of law, no amount derived from the proceeds of any surcharge imposed on the sale of any numismatic item shall be paid from the fund to any designated recipient organization unless--

          ‘(i) all numismatic operation and program costs allocable to the program under which such numismatic item is produced and sold have been recovered; and

          ‘(ii) the designated recipient organization submits an audited financial statement that demonstrates, to the satisfaction of the Secretary, the amount of funds the organization has raised from private sources for all projects or purposes for which the proceeds of such surcharge may be used.

        ‘(B) MATCHING FUND REQUIREMENT- Notwithstanding any other provision of law, the amount derived from the proceeds of any surcharge imposed on the sale of any numismatic item that may otherwise be paid from the fund, under any provision of law relating to such numismatic item, to any designated recipient organization shall not exceed the amount the organization has demonstrated, in accordance with subparagraph (A)(ii), that the organization has raised from private sources for all projects or purposes for which the proceeds of such surcharge may be used.

        ‘(C) UNPAID AMOUNTS- If any amount derived from the proceeds of any surcharge imposed on the sale of any numismatic item that may otherwise be paid from the fund, under any provision of law relating to such numismatic item, to any designated recipient organization remains unpaid to such organization solely by reason of the matching fund requirement contained in subparagraph (B) after the end of the 2-year period beginning on the later of--

          ‘(i) the last day any such numismatic item is issued by the Secretary; or

          ‘(ii) the date of the enactment of the Silver Eagle Coin Continuation Act of 2002,

        such unpaid amount shall be deposited in the Treasury as miscellaneous receipts.’.

    (b) EFFECTIVE DATE- The amendment made by subsection (a) shall apply as of the date of the enactment of Public Law 104-208.

SEC. 4. RESTATEMENT AND REORGANIZATION OF SECTION 5136 OF TITLE 31, UNITED STATES CODE.

    (a) IN GENERAL- Section 5136 of title 31, United States Code, is amended to read as follows:

‘Sec. 5136. United States Mint Public Enterprise Fund

    ‘(a) ESTABLISHMENT- There shall be established in the Treasury of the United States, a fund to be known as the United States Mint Public Enterprise Fund.

    ‘(b) OPERATIONS OF THE FUND-

      ‘(1) DEPOSIT OF RECEIPTS- All receipts from Mint operations and programs, including the production and sale of numismatic items, the production and sale of circulating coinage, the protection of Government assets, and gifts and bequests of property, real or personal shall be deposited into the Fund and shall be available without fiscal year limitations.

      ‘(2) PAYMENT OF EXPENSES- All expenses incurred by the Secretary for operations and programs of the Mint that the Secretary determines, in the Secretary’s sole discretion, to be ordinary and reasonable incidents of Mint operations and programs, and any expense incurred pursuant to any obligation or other commitment of Mint operations and programs that was entered into before the establishment of the Fund, shall be paid out of the Fund.

      ‘(3) BORROWING AUTHORITY-

        ‘(A) IN GENERAL- The Secretary may borrow such funds from the General Fund as may be necessary to meet existing liabilities and obligations incurred prior to the receipt of revenues into the Fund.

        ‘(B) REPAYMENT WITHIN 1 YEAR- The General Fund shall be reimbursed by the Fund for the amount of any loan under subparagraph (A) within 1 year of the date of the loan.

      ‘(4) PROCEEDS OF SALE OF CIRCULATING COINS- The Fund may retain receipts from the Federal Reserve System from the sale of circulating coins at face value for deposit into the Fund (retention of receipts is for the circulating operations and programs).

      ‘(5) EXPENSES OF CITIZENS COMMEMORATIVE COIN ADVISORY COMMITTEE- For purposes of paragraph (2), any expense incurred by the Secretary in connection with the Citizens Commemorative Coin Advisory Committee established under section 5135 shall be treated as an ordinary and reasonable incident of Mint operations and programs.

      ‘(6) TRANSFER OF EXCESS AMOUNTS TO THE TREASURY-

        ‘(A) IN GENERAL- At such times as the Secretary determines appropriate, but not less than annually, any amount in the Fund that is determined to be in excess of the amount required by the Fund shall be transferred to the Treasury for deposit as miscellaneous receipts.

        ‘(B) REPORT TO CONGRESS- The Secretary shall submit an annual report to the Congress containing--

          ‘(i) a statement of the total amount transferred to the Treasury pursuant to subparagraph (A) during the period covered by the report;

          ‘(ii) a statement of the amount by which the amount on deposit in the Fund at the end of the period covered by the report exceeds the estimated operating costs of the Fund for the 1-year period beginning at the end of such period; and

          ‘(iii) an explanation of the specific purposes for which such excess amounts are being retained in the Fund.

    ‘(c) INITIAL CAPITALIZATION OF FUND- The Secretary shall transfer to the Fund all assets and liabilities of the Mint operations and programs, including all Numismatic Public Enterprise Fund assets and liabilities, all receivables, unpaid obligations and unobligated balances from the Mint’s appropriation, the Coinage Profit Fund, and the Coinage Metal Fund, and the land and buildings of the Philadelphia Mint, Denver Mint, and the Fort Knox Bullion Depository.

    ‘(d) BUDGET TREATMENT-

      ‘(1) IN GENERAL- The Secretary shall prepare budgets for the Fund, and estimates and statements of financial condition of the Fund in accordance with the requirements of section 9103 which shall be submitted to the President for inclusion in the budget submitted under section 1105.

      ‘(2) INCLUSION IN ANNUAL REPORT- Statements of the financial condition of the Fund shall be included in the Secretary’s annual report on the operation of the Mint.

      ‘(3) TREATMENT AS WHOLLY OWNED GOVERNMENT CORPORATION FOR CERTAIN PURPOSES- Section 9104 shall apply to the Fund to the same extent such section applies to wholly owned Government corporations.

    ‘(e) FINANCIAL STATEMENTS, AUDITS, AND REPORTS-

      ‘(1) ANNUAL FINANCIAL STATEMENT REQUIRED- By the end of each calendar year, the Secretary shall prepare an annual financial statement of the Fund for the fiscal year which ends during such calendar year.

      ‘(2) CONTENTS OF FINANCIAL STATEMENT- Each statement prepared pursuant to paragraph (1) shall, at a minimum, contain--

        ‘(A) the overall financial position (including assets and liabilities) of the Fund as of the end of the fiscal year;

        ‘(B) the results of the numismatic operations and programs of the Fund during the fiscal year;

        ‘(C) the cash flows or the changes in financial position of the Fund;

        ‘(D) a reconciliation of the financial statement to the budget reports of the Fund; and

        ‘(E) a supplemental schedule detailing--

          ‘(i) the costs and expenses for the production, for the marketing, and for the distribution of each denomination of circulating coins produced by the Mint during the fiscal year and the per-unit cost of producing, of marketing, and of distributing each denomination of such coins; and

          ‘(ii) the gross revenue derived from the sales of each such denomination of coins.

      ‘(3) ANNUAL AUDITS-

        ‘(A) IN GENERAL- Each annual financial statement prepared under paragraph (1) shall be audited--

          ‘(i) by--

            ‘(I) an independent external auditor; or

            ‘(II) the Inspector General of the Department of the Treasury,

          as designated by the Secretary; and

          ‘(ii) in accordance with the generally accepted Government auditing standards issued by the Comptroller General of the United States.

        ‘(B) AUDITOR’S REPORT REQUIRED- The auditor designated to audit any financial statement of the Fund pursuant to subparagraph (A) shall submit a report--

          ‘(i) to the Secretary by March 31 of the year beginning after the end of the fiscal year covered by such financial statement; and

          ‘(ii) containing the auditor’s opinion on--

            ‘(I) the financial statement of the Fund;

            ‘(II) the internal accounting and administrative controls and accounting systems of the Fund; and

            ‘(III) the Fund’s compliance with applicable laws and regulations.

      ‘(4) ANNUAL REPORT ON FUND-

        ‘(A) REPORT REQUIRED- By April 30 of each year, the Secretary shall submit a report on the Fund for the most recently completed fiscal year to the President, the Congress, and the Director of the Office of Management and Budget.

        ‘(B) CONTENTS OF ANNUAL REPORT- The annual report required under subparagraph (A) for any fiscal year shall include--

          ‘(i) the financial statement prepared under paragraph (1) for such fiscal year;

          ‘(ii) the audit report submitted to the Secretary pursuant to paragraph (3)(B) for such fiscal year;

          ‘(iii) a description of activities carried out during such fiscal year;

          ‘(iv) a summary of information relating to numismatic operations and programs contained in the reports on systems on internal accounting and administrative controls and accounting systems submitted to the President and the Congress under section 3512(c);

          ‘(v) a summary of the corrective actions taken with respect to material weaknesses relating to numismatic operations and programs identified in the reports prepared under section 3512(c);

          ‘(vi) any other information the Secretary considers appropriate to fully inform the Congress concerning the financial management of the Fund; and

          ‘(vii) a statement of the total amount of excess funds transferred to the Treasury.

      ‘(5) MARKETING REPORT-

        ‘(A) REPORT REQUIRED FOR 10 YEARS- For each fiscal year beginning before fiscal year 2003, the Secretary shall submit an annual report on all marketing activities and expenses of the Fund to the Congress before the end of the 3-month period beginning at the end of such fiscal year.

        ‘(B) CONTENTS OF REPORT- The report submitted pursuant to subparagraph (A) shall contain a detailed description of--

          ‘(i) the sources of income including surcharges; and

          ‘(ii) expenses incurred for manufacturing, materials, overhead, packaging, marketing, and shipping.

    ‘(f) SUPERSESSION OF NUMISMATIC PUBLIC ENTERPRISE FUND, THE COINAGE PROFIT FUND, AND THE COINAGE METAL FUND-

      ‘(1) IN GENERAL- The Numismatic Public Enterprise Fund, the Coinage Profit Fund, and the Coinage Metal Fund shall cease to exist as separate funds as the activities and functions of the respective funds are subsumed under and become subject to the Fund.

      ‘(2) REFERENCES IN FEDERAL LAW TO OTHER FUNDS- Any reference in any Federal law to the Numismatic Public Enterprise Fund, the Coinage Profit Fund, or the Coinage Metal Fund shall be deemed to be a reference to the Fund.

      ‘(3) REFERENCES IN FEDERAL LAW TO SECTION 5134- Any reference in any Federal law to section 5134 shall be deemed to be a reference to this section.

    ‘(g) DEFINITIONS- For purposes of this section, the following definitions shall apply-

      ‘(1) FUND- The term ‘Fund’ means the United States Mint Public Enterprise Fund established under this section.

      ‘(2) MINT- The term ‘Mint’ means the United States Mint.

      ‘(3) MINT OPERATIONS AND PROGRAMS- The term ‘Mint operations and programs’--

        ‘(A) means the activities concerning, and assets utilized in, the production, administration, distribution, marketing, purchase, sale, and management of coinage, numismatic items, the protection and safeguarding of Mint assets and those nonmint assets in the custody of the Mint, and the Fund; and

        ‘(B) includes capital, personnel salaries and compensation, functions relating to operations, marketing, distribution, promotion, advertising, official reception and representation, the acquisition or replacement of equipment, the renovation or modernization of facilities, and the construction or acquisition of new buildings.

      ‘(4) NUMISMATIC ITEM- The term ‘numismatic item’ includes any medal, proof coin, numismatic collectible, other monetary issuances and products, and accessories related to any such medal or coin.

      ‘(5) SECRETARY- The term ‘Secretary’ means the Secretary of the Treasury.

    ‘(h) GENERAL WAIVER- No provision of law governing procurement or public contracts shall be applicable to the procurement of goods and services necessary for carrying out Mint programs and operations.’.

    (b) RULE OF CONSTRUCTION- The amendment made by subsection (a) to section 5136 of title 31, United States Code--

      (1) may not be construed as making any substantive change in the meaning of any provision of such section (as in effect on the day before the effective date of such amendment); and

      (2) shall not affect any regulation prescribed, any order issued, or any action taken before the effective date of such amendment under or pursuant to such section (as in effect on the day before such date).

    (c) TECHNICAL CORRECTION-

      (1) IN GENERAL- Section 522 of Public Law 104-52 (109 Stat. 494) is amended--

        (A) by striking the closing quotation marks after ‘PUBLIC ENTERPRISE FUND.’ and inserting ‘--’; and

        (B) by inserting closing quotation marks and a second period after the period at the end.

      (2) EFFECTIVE DATE- The amendment made by paragraph (1) shall be effective as if such amendment had been included in section 522 of Public Law 104-52 as of the date of the enactment of that Act.

    (d) TECHNICAL AND CONFORMING AMENDMENTS-

      (1) TRANSFER OF SUPERSEDED PROVISIONS NOT PREVIOUSLY INCLUDED- Subsections (f) and (g) of section 5134 of title 31, United States Code (as subsection (f) is amended by section 3 of this Act) are hereby--

        (A) transferred to section 5136 of title 31, United States Code (as amended by subsection (a) of this section);

        (B) inserted after subsection (h); and

        (C) redesignated as subsections (i) and (j), respectively.

      (2) REPEAL OF SUPERSEDED PROVISIONS-

        (A) Section 5111 of title 31, United States Code, is amended by striking subsection (b) and inserting the following:

    ‘(b) [Repealed]’.

        (B) Section 5116(b)(1) of title 31, United States Code, is amended by striking the last sentence.

        (C) Section 5120(a) of title 31, United States Code, is amended--

          (i) in paragraph (1), by striking ‘the coinage metal fund under section 5111(b) of this title’ and inserting ‘the United States Mint Public Enterprise Fund’; and

          (ii) by striking paragraph (2).

        (D) Section 5132(a)(1) of title 31, United States Code, is amended by striking the first 2 sentences.

        (E) Section 5134 of title 31, United States Code, is hereby repealed.

    (e) CLERICAL AMENDMENTS- The table of sections for subchapter III of chapter 51, United States Code, is amended--

      (1) by striking the item relating to section 5134 and inserting the following new item:

      ‘5134. [Repealed].’;

      (2) by striking the item relating to section 5135 and inserting the following new item:

      ‘5135. Citizens Commemorative Coin Advisory Committee.’; and

      (3) by inserting after the item relating to section 5135 the following new item:

      ‘5136. United States Mint Public Enterprise Fund.’.

Passed the House of Representatives June 25, 2002.

Attest:

JEFF TRANDAHL,

Clerk.