[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4846 Engrossed in House (EH)]


  2d Session

                               H. R. 4846

_______________________________________________________________________

                                 AN ACT

To amend title 31, United States Code, to clarify the sources of silver 
               for bullion coins, and for other purposes.
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
107th CONGRESS
  2d Session
                                H. R. 4846

_______________________________________________________________________

                                 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:

                                                                 Clerk.