[House Report 108-472]
[From the U.S. Government Publishing Office]
108th Congress Rept. 108-472
HOUSE OF REPRESENTATIVES
2d Session Part 2
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JAMESTOWN 400TH ANNIVERSARY COMMEMORATIVE COIN ACT OF 2003
_______
July 6, 2004.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Thomas, from the Committee on Ways and Means, submitted the
following
R E P O R T
[To accompany H.R. 1914]
[Including cost estimate of the Congressional Budget Office)
The Committee on Ways and Means, to whom was referred the
bill (H.R. 1914) to provide for the issuance of a coin to
commemorate the 400th anniversary of the Jamestown settlement,
having considered the same, report favorably thereon with an
amendment and recommend that the bill, as amended, do pass.
CONTENTS
Page
I. Summary and Background............................................2
II. Explanation of the Bill...........................................2
III.Votes of the Committee............................................3
IV. Budget Effects of the Bill........................................4
V. Other Matters To Be Discussed Under the Rules of the House........6
The amendment (stated in terms of the page and line numbers
of the introduced bill) is as follows:
Page 8, after line 16 (at the end of section 7), add the
following new subsection:
(d) Limitation.--Notwithstanding subsection (a), no
surcharge may be included with respect to the issuance under
this Act of any coin during a calendar year if, as of the time
of such issuance, the issuance of such coin would result in the
number of commemorative coin programs issued during such year
to exceed the annual 2 commemorative coin program issuance
limitation under section 5112(m)(1) of title 31, United States
Codes (as in effect on the date of the enactment of this Act).
The Secretary of the Treasury may issue guidance to carry out
this subsection.
I. SUMMARY AND BACKGROUND
A. Purpose and summary
The bill, H.R. 1914, as amended, contains provisions that
direct the U.S. Mint to produce coins to commemorate the 400th
anniversary of the founding of Virginia at Jamestown and permit
a surcharge to be collected on such coins. However, such
surcharges may be collected only with respect to two
commemorative coin programs per year.
B. Background and need for legislation
The provisions approved by the Committee reflect the need
to enforce the limitation established in the Commemorative Coin
Reform Act of 1996 that commemorative coins from no more than
two commemorative coin programs carrying surcharges be issued
per year.
C. Legislative history
The House Committee on Ways and Means marked up H.R. 1914
on June 23, 2004, and ordered the bill, as amended, favorably
reported by voice vote.
II. EXPLANATION OF THE BILL
Present law
The Secretary of the Treasury is authorized to issue
commemorative coins under the United States Commemorative Coin
Act of 1996,\1\ as amended, and specific statutes authorizing
the issuance of coins under a commemorative coin program. A
statute authorizing a commemorative coin program generally
includes a provision establishing authority for the Secretary
to impose a surcharge with respect to that program. Proceeds of
the surcharge are to be used for the purposes authorized by the
commemorative coin program authorizing legislation. Under
present law, effective January 1, 1999, the Secretary may mint
and issue commemorative coins during any calendar year with
respect to not more than two commemorative coin programs.\2\
This limitation applies to coin programs without regard to
whether a surcharge is imposed.
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\1\ Pub. L. No. 104-329.
\2\ 31 U.S.C. 5112.
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Reasons for change
The Committee understands that, since 1982, 42 different
commemorative coins have been produced and they have generated
approximately $430 million in surcharges. Changes enacted under
the Commemorative Coin Reform Act of 1996 provide that the
Federal Government may retain surcharges if the recipient
organization does not meet certain requirements, e.g., matching
funds. The surcharges raise revenue for the Federal Government
that is used to fund various programs and organizations as
provided in the authorizing legislation. The Commemorative Coin
Reform Act of 1996 also provided that there would be a limit of
no more than two commemorative coins issued annually. Because
commemorative coins are used to raise revenue for the Federal
Government, the Committee believes it is appropriate to enforce
the limitation of no more than two commemorative coin programs
per year by providing that no surcharge may be collected on any
commemorative coin issued as part of more than two
commemorative coin programs in any calendar year.
Explanation of provision
H.R. 1914, as amended by the Committee, provides for the
issuance of a coin to commemorate the 400th anniversary of the
Jamestown settlement. The bill provides that the Secretary
shall mint and issue a one-dollar coin and a five-dollar coin,
each of which shall be legal tender and considered to be a
numismatic item. The bill provides that all sales of the coins
shall include a surcharge of thirty-five dollars per coin for a
five-dollar coin, and ten dollars per coin for a one-dollar
coin. Under the bill, fifty percent of the surcharges received
by the secretary from the sale of coins issued under the bill
shall be paid to the Jamestown-Yorktown Foundation of the
Commonwealth of Virginia to support programs to promote the
understanding of the legacies of Jamestown, and fifty percent
shall be used to sustain the ongoing mission of preserving
Jamestown; to enhance national and international educational
programs relating to Jamestown; to improve infrastructure and
archaeological research activities relating to Jamestown; and
to conduct other programs to support the commemoration of the
400th anniversary of the settlement of Jamestown.
The bill, as amended, further provides that no surcharge
may be included with respect to the issuance of coins under
H.R. 1914, the ``Jamestown 400th Anniversary Commemorative Coin
Act of 2003,'' during a calendar year if, as of the time of
such issuance, the issuance of such coin would result in the
number of commemorative coin programs issued during such year
to exceed the annual limitation of two such commemorative coin
programs under section 5112(m)(1) of Title 31 of the United
States Code. The bill provides that the Secretary of the
Treasury may issue guidance to carry out the provision. The
Secretary may issue coins minted under the bill only during the
period beginning on January 1, 2007, and ending on December 31,
2007. Thus, if in 2007, prior to the issuance of either of the
Jamestown coins, commemorative coins have been issued under two
or more other commemorative coin programs for which a surcharge
was included, then, under the bill as amended, the Jamestown
coins issued in 2007 would have to be issued without a
surcharge.
Effective date
The provision is effective on the date of enactment.
III. VOTES OF THE COMMITTEE
In compliance with clause 3(b) of rule XIII of the Rules of
the House of Representatives, the following statements are made
concerning the votes of the Committee on Ways and Means in its
consideration of the bill, H.R. 1914.
Motion to report the bill
The bill, H.R. 1914, as amended was ordered favorably
reported by voice vote (with a quorum being present).
IV. BUDGET EFFECTS OF THE BILL
A. Committee estimate of budgetary effects
In compliance with clause 3(d)(2) of the rule XIII of the
Rules of the House of Representatives, the following statement
is made concerning the effects on the budget of the revenue
provisions of the bill, H.R. 1914 as reported.
The Committee agrees with the estimate prepared by CBO
which is included below.
B. Statement regarding new budget authority and tax expenditures budget
authority
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee states that the
bill involves no new or increased budget authority.
C. Cost estimate prepared by the congressional budget office
In compliance with clause 3(c)(3) of rule XIII of the Rules
of the House of Representatives, requiring a cost estimate
prepared by the CBO, the following statement by CBO is
provided.
U.S. Congress,
Congressional Budget Office,
Washington, DC, July 1, 2004.
Hon. William ``Bill'' M. Thomas,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 1914, the
Jamestown 400th Anniversary Commemorative Coin Act of 2003.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Matthew
Pickford.
Sincerely,
Elizabeth M. Robinson
(For Douglas Holtz-Eakin, Director).
Enclosure.
H.R. 1914--Jamestown 400th Anniversary Commemorative Coin Act of 2003
Summary: H.R. 1914 would direct the U.S. Mint to produce a
$5 gold coin and a $1 silver coin in calendar year 2007 to
commemorate the 400th anniversary of the founding of Jamestown,
Virginia. The bill would specify a surcharge on the sales price
of $35 for the gold coin and $10 for the silver coin and would
designate the Jamestown-Yorktown Foundation (an educational
institution of the Commonwealth of Virginia), the National Park
Service, and the Association for the Preservation of Virginia
Antiquities (a private nonprofit association), as recipients of
the income from those surcharges.
CBO estimates that enacting H.R. 1914 would have no
significant net impact on direct spending over the 2004-2009
period. H.R. 1914 contains no intergovernmental or private-
sector mandates as defined in the Unfunded Mandates Reform Act
(UMRA), and would likely benefit the Commonwealth of Virginia.
Estimated cost to the Federal Government: H.R. 1914 could
raise as much as $8.5 million in surcharges if the Mint sells
the maximum number of authorized coins. Recent commemorative
coin sales, however, suggest that receipts would be about $3
million. Under current law, the Mint must ensure that it will
not lose money on a commemorative coin program before
transferring any surcharges to a designated recipient
organization. CBO expects that the Mint would collect most of
those surcharges in fiscal year 2007 and would transfer
collections to the designated recipients in fiscal year 2008.
H.R. 1914 could limit the collection of surcharges from
more than two commemorative coins in any calendar year.
According to the Mint there are currently no commemorative
coins scheduled to be issued in 2007, so we expect this
provision would not reduce the collection or spending of
surcharges for the Jamestown 400th Anniversary Commemorative
Coins.
In addition, CBO expects that the Mint would use gold
obtained from the reserves held at the Treasury to produce the
gold coin. Because the budget treats the sale of gold as a
means of financing governmental operations--that is, the
Treasury's receipts from such sales do not affect the size of
the deficit--CBO has not included such receipts in this
estimate. CBO estimates that H.R. 1914 would provide the
federal government with about $3.5 million in additional cash
(in exchange for gold) for financing the federal deficit in
fiscal year 2007.
Intergovernment and private-sector impact: H.R. 1914
contains no intergovernmental or private-sector mandates as
defined in UMRA, and would likely benefit the Commonwealth of
Virginia.
Previous CBO estimates: On June 25, 2004, CBO transmitted a
cost estimate for S. 976, the Jamestown 400th Anniversary
Commemorative Coin Act of 2003, as ordered reported by the
Senate Committee on Banking, Housing, and Urban Affairs. On
March 22, 2004, CBO transmitted a cost estimate for H.R. 1914,
as ordered reported by the House Committee on Financial
Services on March 17, 2004. The three pieces of legislation are
similar and our cost estimates are the same.
Estimate prepared by: Federal Costs: Matthew Pickford.
Impact on State, Local, and Tribal Governments: Sarah Puro.
Impact on the Private Sector: Paige Piper/Bach.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
D. Macroeconomic impact analysis
In compliance with clause 3(h)(2) of rule XIII of the Rules
of the House of Representatives, the following statement is
made by the Joint Committee on Taxation with respect to the
provisions of the bill amending the Internal Revenue Code of
1986: the effects of the bill on economic activity are so small
as to be incalculable within the context of a model of the
aggregate economy.
V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE
A. Committee oversight findings and recommendations
With respect to clause 3(c)(1) of rule XIII of the Rules of
the House of Representatives (relating to oversight findings),
the Committee advises that it was a result of the Committee's
oversight review concerning Federal commemorative coin programs
that the Committee concluded that it is appropriate and timely
to enact the revenue provision included in the bill as
reported.
B. Statement of general performance goals and objectives
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the Committee establishes the
following performance related goals and objectives for this
legislation:
The Secretary of the Treasury shall use the authority
granted by this legislation to mint two commemorative coins
emblematic of the settlement of Jamestown and transfer the
proceeds from the sale of those coins to the Jamestown-Yorktown
Foundation of the Commonwealth of Virginia.
C. Constitutional authority statement
With respect to clause 3(d)(1) of the rule XIII of the
Rules of the House of Representatives (relating to
Constitutional Authority), the Committee states that the
Committee's action in reporting this bill is derived from
Article I of the Constitution, Section 8 (``The Congress shall
have Power To lay and collect Taxes, Duties, Imposts and
Excises. . .'').
D. Information relating to unfunded mandates
This information is provided in accordance with section 423
of the Unfunded Mandates Act of 1995 (P.L. 104-4).
The Committee has determined that the revenue provisions of
the bill do not impose a Federal intergovernmental mandate on
State, local, or tribal governments.
E. Applicability of House rule XXI 5(b)
Rule XXI 5(b) of the Rules of the House of Representatives
provides, in part, that ``A bill or joint resolution,
amendment, or conference report carrying a Federal income tax
rate increase may not be considered as passed or agreed to
unless so determined by a vote of not less than three-fifths of
the Members voting, a quorum being present.'' The Committee has
carefully reviewed the provisions of the bill, and states that
the provisions of the bill do not involve any Federal income
tax rate increases within the meaning of the rule.
F. Tax complexity analysis
Section 4022(b) of the Internal Revenue Service Reform and
Restructuring Act of 1998 (the ``IRS Reform Act'') requires the
Joint Committee on Taxation (in consultation with the Internal
Revenue Service and the Department of the Treasury) to provide
a tax complexity analysis. The complexity analysis is required
for all legislation reported by the Senate Committee on
Finance, the House Committee on Ways and Means, or any
committee of conference if the legislation includes a provision
that directly or indirectly amends the Internal Revenue Code
(the ``Code'') and has widespread applicability to individuals
or small businesses.
The staff of the Joint Committee on Taxation has determined
that a complexity analysis is not required under section
4022(b) of the IRS Reform Act because the bill contains no
provisions that directly or indirectly amend the Internal
Revenue Code.