[Congressional Record Volume 141, Number 192 (Tuesday, December 5, 1995)]
[House]
[Pages H13946-H13948]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
COMMEMORATIVE COIN AUTHORIZATION AND REFORM ACT OF 1995
Mr. CASTLE. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 2614) to reform the commemorative coin programs of the U.S.
Mint in order to protect the integrity of such programs and prevent
losses of Government funds, to authorize the U.S. Mint to mint and
issue platinum and gold bullion coins, and for other purposes.
The Clerk read as follows:
H.R. 2614
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 ``Commemorative Coin
Authorization and Reform Act of 1995''.
TITLE I--COMMEMORATIVE COIN PROGRAM REFORM
SEC. 101. RECOVERY OF MINT EXPENSES REQUIRED BEFORE PAYMENT
OF SURCHARGES TO ANY RECIPIENT ORGANIZATION.
(a) Clarification of Law Relating to Deposit of Surcharges
in the Numismatic Public Enterprise Fund.--Section 5134(c)(2)
of title 31, United States Code, is amended by inserting ``,
including amounts attributable to any surcharge imposed with
respect to the sale of any numismatic item'' before the
period.
(b) Conditions on Payment of Surcharges to Recipient
Organizations.--Section 5134 of title 31, United States Code,
is amended by adding at the end the following new subsection:
``(f) Conditions on Payment of Surcharges to Recipient
Organizations.--
``(1) Payment of surcharges.--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--
``(A) all numismatic operation and program costs allocable
to the program under which such numismatic item is produced
and sold have been recovered; and
``(B) the designated recipient organization submits an
audited financial statement which demonstrates to the
satisfaction of the Secretary of the Treasury that, with
respect to all projects or purposes for which the proceeds of
such surcharge may be used, the organization has raised funds
from private sources for such projects and purposes in an
amount which is equal to or greater than the maximum amount
the organization may receive from the proceeds of such
surcharge.
``(2) Annual audits.--
``(A) Annual audits of recipients required.--Each
designated recipient organization which receives any payment
from the fund of any amount derived from the proceeds of any
surcharge imposed on the sale of any numismatic item shall
provide, as a condition for receiving any such amount, for an
annual audit, in accordance with generally accepted
government auditing standards by an independent public
accountant selected by the organization, of all such payments
to the organization beginning in the first fiscal year of the
organization in which any such amount is received and
continuing until all amounts received by such organization
from the fund with respect to such surcharges are fully
expended or placed in trust.
``(B) Minimum requirements for annual audits.--At a
minimum, each audit of a designated recipient organization
pursuant to subparagraph (A) shall report--
``(i) the amount of payments received by the designated
recipient organization from the fund during the fiscal year
of the organization for which the audit is conducted which
are derived from the proceeds of any surcharge imposed on the
sale of any numismatic item;
``(ii) the amount expended by the designated recipient
organization from the proceeds of such surcharges during the
fiscal year of the organization for which the audit is
conducted; and
``(iii) whether all expenditures by the designated
recipient organization during the fiscal year of the
organization for which the audit is conducted from the
proceeds of such surcharges were for authorized purposes.
``(C) Responsibility of organization to account for
expenditures of surcharges.--Each designated recipient
organization which receives any payment from the fund of any
amount derived from the proceeds of any surcharge imposed on
the sale of any numismatic item shall take appropriate steps,
as a condition for receiving any such payment, to ensure that
the receipt of the payment and the expenditure of the
proceeds of such surcharge by the organization in each fiscal
year of the organization can be accounted for separately from
all other revenues and expenditures of the organization.
``(D) Submission of audit report.--Not later than 90 days
after the end of any fiscal year of a designated recipient
organization for which an audit is required under
subparagraph (A), the organization shall--
``(i) submit a copy of the report to the Secretary of the
Treasury; and
``(ii) make a copy of the report available to the public.
``(E) Use of surcharges for audits.--Any designated
recipient organization which receives any payment from the
fund of any amount derived from the proceeds of any surcharge
imposed on the sale of any numismatic item may use the amount
received to pay the cost of an audit required under
subparagraph (A).
``(F) Waiver of paragraph.--The Secretary of the Treasury
may waive the application of any subparagraph of this
paragraph to any designated recipient organization for any
fiscal year after taking into account the amount of
surcharges which such organization received or expended
during such year.
``(G) Nonapplicability to federal entities.--This paragraph
shall not apply to any Federal agency or department or any
independent establishment in the executive branch which
receives any payment from the fund of any amount derived from
the proceeds of any surcharge imposed on the sale of any
numismatic item.
``(H) Availability of books and records.--An organization
which receives any payment from the fund of any amount
derived from the proceeds of any surcharge imposed on the
sale of any numismatic item shall provide, as a condition for
receiving any such payment, to the Inspector General of the
Department of the Treasury or the Comptroller General of the
United States, upon the request of such Inspector General or
the Comptroller General, all books, records, and workpapers
belonging to or used by the organization, or by any
independent
[[Page H 13947]]
public accountant who audited the organization in accordance with
subparagraph (A), which may relate to the receipt or
expenditure of any such amount by the organization.
``(3) Use of agents or attorneys to influence commemorative
coin legislation.--No portion of any payment from the fund to
any designated recipient organization of any amount derived
from the proceeds of any surcharge imposed on the sale of any
numismatic item may be used, directly or indirectly, by the
organization to compensate any agent or attorney for services
rendered to support or influence in any way legislative
action of the Congress relating to such numismatic item.
``(4) Designated recipient organization defined.--For
purposes of this subsection, the term `designated recipient
organization' means any organization designated, under any
provision of law, as the recipient of any surcharge imposed
on the sale of any numismatic item.''.
(c) Scope of Application.--The amendments made by this
section shall apply with respect to the proceeds of any
surcharge imposed on the sale of any numismatic item which
are deposited in the Numismatic Public Enterprise Fund after
the date of the enactment of this Act.
(d) Repeal of Existing Recipient Report Requirement.--
Section 303 of Public Law 103--186 (31 U.S.C. 5112 note) is
hereby repealed.
SEC. 102. CITIZENS COMMEMORATIVE COIN ADVISORY COMMITTEE.
(a) Fixed Terms for Members.--Section 5135(a)(4) of title
31, United States Code, is amended to read as follows:
``(4) Terms.--Each member appointed under clause (i) or
(iii) of paragraph (3)(A) shall be appointed for a term of 4
years.''.
(b) Chairperson.--Section 5135(a) of title 31, United
States Code, is amended by adding at the end the following
new paragraph:
``(6) Chairperson.--The Chairperson of the Advisory
Committee shall be elected by the members of the Advisory
Committee from among such members.''.
SEC. 104. COMMEMORATIVE CIRCULATING COIN PROGRAM.
(a) In General.--The Citizens Commemorative Coin Advisory
Committee shall develop a recommendation for a multiyear
commemorative coin program involving the circulating coins of
the United States which would supersede other commemorative
coin programs for the years the commemorative circulating
coin program is in effect.
(b) Report to Congress.--The Citizens Commemorative Coin
Advisory Committee shall submit a report to the Congress
before the end of the 6-month period beginning on the date of
the enactment of this Act on the recommendations developed by
the committee pursuant to subsection (a), together with such
recommendations for legislative or administrative action as
the committee determines to be necessary or appropriate with
respect to such recommendations.
TITLE II--PLATINUM AND GOLD BULLION COINS
SEC. 201. PLATINUM COINS.
(a) In General.--Section 5112 of title 31, United States
Code, is amended by adding at the end the following new
subsection:
``(k) Platinum Coins.--
``(1) In general.--Notwithstanding any other provision of
law, the Secretary of the Treasury may mint and issue
platinum coins in such quantity and of such variety as the
Secretary determines to be appropriate.
``(2) Specifications.--Platinum coins minted under this
subsection shall meet such specifications with respect to
diameter, weight, design, and fineness as the Secretary, in
the Secretary's discretion, may prescribe from time to time.
``(3) Legal tender.--The coins minted under this subsection
shall be legal tender, as provided in section 5103 of title
31, United States Code.
``(4) Numismatic items.--For purposes of section 5134 of
title 31, United States Code, all coins minted under this
subsection shall be considered to be numismatic items.
``(5) Designations and inscriptions.--On each coin minted
under this subsection, there shall be--
``(A) a designation of the value of the coin and the weight
of the platinum content of the coin;
``(B) an inscription of the year in which the coin is
minted or issued; and
``(C) inscriptions of the words `Liberty', `In God We
Trust', `United States of America', and `E Pluribus Unum'.
``(6) Sale price.--
``(A) Bullion.--The bullion versions of the coins issued
under this Act shall be sold by the Secretary at a price
equal to the sum of--
``(i) the market value of the bullion at the time of the
sale; and
``(ii) the cost of minting, marketing, and distributing the
coins (including labor, materials, dies, use of machinery,
and promotional and overhead expenses).
``(B) Proof versions.--Proof versions of the coins issued
under this Act may be sold by the Secretary at a price equal
to the sum of--
``(i) the cost of designing and issuing the coins
(including labor, materials, dies, use of machinery, overhead
expenses, marketing, and shipping); and
``(ii) a reasonable profit.
``(7) Bulk sales.--The Secretary may make bulk sales of the
coins issued under this subsection at a reasonable
discount.''.
(b) Technical and Conforming Amendment.--Section 5112(j)(1)
of title 31, United States Code, is amended by inserting ``,
(i), or (k)'' after ``subsection (e)''.
SEC. 202. AMERICAN EAGLE GOLD COINS AUTHORIZED TO BE PRODUCED
IN 2 OR MORE DESIGNS, WEIGHTS, DIAMETERS, OR
FINENESSES SIMULTANEOUSLY.
Section 5112(i)(4) of title 31, United States Code, is
amended by adding at the end the following new subparagraph:
``(C) Continued minting to statutory specifications after
determination to mint coins to changed specifications.--
Notwithstanding any other provision of this section, the
Secretary may continue to mint and issue coins in accordance
with the specifications contained in paragraphs (7), (8),
(9), and (10) of subsection (a) and paragraph (1)(A) of this
subsection at the same time the Secretary is minting and
issuing other coins under this subsection in accordance with
such specifications, varieties, quantities, designations, and
inscriptions as the Secretary may determine to be
appropriate.''.
TITLE III--MINT MANAGERIAL STAFFING REFORM
SEC. 301. MODERNIZATION OF THE MANAGEMENT STRUCTURE.
Section 5131 of title 31, United States Code, is amended--
(1) by striking subsection (c); and
(2) by redesignating subsection (d) as subsection (c).
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Delaware [Mr. Castle] and the gentleman from New York [Mr. Flake] will
be recognized for 20 minutes each.
The Chair recognizes the gentleman from Delaware [Mr. Castle].
Mr. CASTLE. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, today I rise in support of H.R. 2614, a measure that
protects the American taxpayer and maintains the integrity of the U.S.
Mint's coin programs. I am grateful to enjoy the support of
Representative James Leach, chairman of the Committee on Banking and
Financial Services. On the other side of the aisle, Representative
Gonzalez, former committee chairman, Representative Flake, the ranking
member of the subcommittee, Representatives Maloney, Watt, and Frank of
Massachusetts have provided their strong support for this legislation,
and I appreciate their efforts. I would also like to acknowledge the
valuable input and support of Representatives Barr, Lucas, Kelly, Ney,
Fox, and Metcalf of the subcommittee. Representative John Olver,
although not a committee member, has also provided immeasurable support
and generous guidance in bringing this bill to the floor today.
Mr. Speaker, the Subcommittee on Domestic and International Monetary
Policy has primary jurisdiction over the Commemorative Coin Programs of
the U.S. Mint. This legislation reforms those programs following
recommendations by the administration and the Citizens Commemorative
Coin Advisory Committee [CCCAC], received both in testimony before the
subcommittee on July 12, 1995, and in CCCAC's First Annual Report to
Congress, released in November, 1994. This bill also addresses the
concerns of the numismatic collectors, who purchase 90 percent of
commemorative coin issues. No longer will the saturation of the market
threaten the value of their collections, nor with they be the sole
support for beneficiary causes of uncertain popularity.
Title I, which covers Commemorative Coin Program Reform, amends
section 5134 of U.S.C. title 31, and prohibits disbursement of
surcharges to recipient organizations unless and until all Mint costs
for that coin have been fully recovered. With both previous and current
programs, surcharges were disbursed as coins were sold, at times
putting Government moneys at risk. It is our hope that this will also
help to keep in check the marketing costs, undertaken by the Mint, that
have been requested by recipient organizations.
The maximum surcharge disbursement to a recipient organization is
limited to the amount received from separate fund raising by that
organization. No longer will organizations depend exclusively on
surcharges for funding projects. This reform will insure that
beneficiary organizations are not simply created to receive the
proceeds of commemorative coins but requires that they demonstrate an
adequate and independent measure of public support.
Annual audits will be required of the recipient organizations, with
an accounting of all surcharge moneys and verification of the
authorized use of surcharge moneys. In addition, title I
[[Page H 13948]]
forbids any recipient organization from using surcharges for lobbying
activities, thereby maintaining the original purpose of the surcharge
moneys.
Title I shortens the length of service for members of the CCCAC to a
term of 4 years, and allows for the election of a chairperson by and
from committee members. This makes for a better reflection of the
appointing administration and does not extend the appointees' mandate
far beyond it. H.R. 2614 calls for the CCCAC to develop recommendations
for a multiyear Commemorative Coin Program, along the lines of the
popular bicentennial quarter. No surcharges are collected on this type
of commemorative, which makes the hobby of coin collecting affordable
and accessible to the broadest public.
Title II permits the issuance of plantium and gold bullion coins by
amending section 5112 of U.S.C. title 31. The Secretary of the Treasury
would have the authority to determine the quantity, variety, and
physical specifications of these coins. The price would be that of the
bullion plus cost of manufacture, with a reasonable profit added for
proof versions. Minting of two or more designs of the American Eagle
gold coins, with specifications determined by the Secretary, would be
allowed.
Title III eliminates, at the administration's request, nine political
positions not filled by the current administration.
Mr. Speaker, H.R. 2614 goes a long way toward correcting problems
that threatened to destroy the Commemorative Coin Program.
Commemorative coins are a benefit, not only to numismatic enthusiasts
and the recipient organizations but also by reaffirming our history, to
our Nation as a whole. This bill links public funding of special
projects to demonstrated private support, and discourages groups from
demanding superfluous coins. It prevents the further abuse of the coin
collecting community by groups lacking general public support. This
bill must be passed if the Commemorative Coin Program is to survive and
even flourish in the current environment with reduced levels of demand.
I urge its immediate adoption.
Mr. Speaker, I reserve the balance of my time.
Mr. FLAKE. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I would first like to congratulate the gentleman from
Delaware [Mr. Castle] and his staff for working diligently this year on
a number of coin-related issues. Moreover, I join with him today in
support of H.R. 2614, which will make minor, but vital, changes in our
process of minting commemorative coins.
Mr. Speaker, in the past, I have supported various types of
legislation to mint commemorative coins. Since assuming the role of
ranking member on the authorizing committee, however, I have become
more aware of the crisis in the commemorative coin process. My fellow
colleagues, you would be amazed at the intensity of the debate on this
issue. All those in favor of new coins, and those who vehemently oppose
them, continually execute overwhelming lobbying campaigns. The result
is that the Banking Committee always has a broad spectrum of opinions
as to which coins deserve to be included in the Mint's commemorative
series.
As political favors, and with good intentions, Members of Congress
continually introduce new coin legislation. Consequently, the Banking
Committee, and the Mint have drowned in a sea of commemoratives. The
net result is that Congress has burdened the Mint with numerous coins
which diminish the Mint's capacity to mint regular coins, and which
further cause the Mint to operate at a higher cost.
The numismatic community also has problems with the current state of
affairs in the commemorative process. The onslaught of commemoratives
has the negative effect of decreasing the value of coins to the
collector. This in turn discourages purchases, and leaves the Mint
holding the proverbial ``bag'' in that it is stuck with coins it cannot
sell.
H.R. 2614 mends this process. By making clear that we will give
primary consideration to recommendations from the Citizens
Commemorative Coin Advisory Committee, and by requiring stringent
audits, we will ensure integrity in the process. Furthermore, by
requiring that the Mint recover its costs before surcharges are
released to recipient groups, we will protect the vital fiscal interest
of the Government.
Finally, Mr. Speaker, this legislation authorizes the minting of
platinum and gold bullion coins. Again this will encourage increased
purchases, and opens a new competitive market for precious metal coins.
It is my hope that this bill passes with unanimous support.
Mr. Speaker, I reserve the balance of my time.
Mr. CASTLE. Mr. Speaker, no recognition other than, again, to thank
the gentleman from New York [Mr. Flake] for the work he has done. This
particular piece of legislation did take some dealings with various
groups and individuals in order to work out some of the differences,
and we were able to do so.
If the gentleman is prepared to yield back, I am as well.
Mr. FLAKE. Mr. Speaker, I yield myself 1 minute to thank the
gentleman from Delaware [Mr. Castle] and his staff. Again, this really
is a great subcommittee Domestic and International Monetary Policy. The
gentleman from Delaware [Mr. Castle] and I have been able to have an
excellent relationship. Our staffs relate excellently, and that is the
reason we can bring bills to the floor and move them so easily.
Mr. GONZALEZ. Mr. Speaker, I strongly recommend that all Members of
the House of Representatives today vote to pass H.R. 2416, the
Commemorative Coin Authorization and Reform Act of 1995.
Our colleague, Congressman Michael Castle of Delaware, introduced
this bill and, as chairman of the Banking Committee's Domestic and
International Monetary Policy Subcommittee, chaired a markup of the
bill which resulted in a unanimous vote for this legislation.
This important legislation provides critical reform of our Nation's
commemorative coin program. The reforms contained in this bill have
been suggested and endorsed by the administration and the Mint's
Citizens Commemorative Coin Advisory Committee. Among some of the more
noteworthy changes are provisions that disallow payment of any
surcharges resulting from the sale of the coins until and unless the
cost to the U.S. Mint for the coin has been recovered. In addition, the
organization which receives the surcharge must submit audited financial
statements showing receipts of donations from private sources greater
than the potential proceeds of coin surcharges.
Further, the recipient organization will be required to submit an
annual audit of all surcharge payments indicating all revenues and
expenditures and verification that all expenditures were for authorized
purposes. For example, because of this bill, surcharge moneys for a
program to build a memorial could not be used for the general support
of the sponsoring organization.
In summary, Mr. Speaker, in our vote today, we will ensure the
financial integrity of the commemorative coin program. Passage of H.R.
2614 will reinforce the public's confidence in the program and I
commend Chairman Castle and the ranking Democratic member of the
subcommittee, Congressman Floyd Flake, for their work in bringing this
bill to the floor today.
I urge an ``aye'' vote.
Mr. FLAKE. Mr. Speaker, I yield back the balance of my time.
Mr. CASTLE. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Delaware [Mr. Castle] that the House suspend the rules
and pass the bill, H.R. 2614.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
____________________