[House Report 108-568]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     108-568
======================================================================


 
                    PRESIDENTIAL $1 COIN ACT OF 2004

                                _______
                                

 June 24, 2004.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. Oxley, from the Committee on Financial Services, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 3916]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Financial Services, to whom was referred the 
bill (H.R. 3916) to improve circulation of the $1 coin, create 
a new bullion coin, and for other purposes, having considered 
the same, report favorably thereon with an amendment and 
recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     1
Purpose and Summary..............................................     6
Background and Need for Legislation..............................     6
Hearings.........................................................     7
Committee Consideration..........................................     7
Committee Votes..................................................     8
Committee Oversight Findings.....................................     8
Performance Goals and Objectives.................................     8
New Budget Authority, Entitlement Authority, and Tax Expenditures     8
Committee Cost Estimate..........................................     9
Congressional Budget Office Estimate.............................     9
Federal Mandates Statement.......................................    12
Advisory Committee Statement.....................................    12
Constitutional Authority Statement...............................    12
Applicability to Legislative Branch..............................    12
Section-by-Section Analysis of the Legislation...................    12
Changes in Existing Law Made by the Bill, as Reported............    13

                               Amendment

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SEC. 1. SHORT TITLE.

  This Act may be cited as the ``Presidential $1 Coin Act of 2004'' .

SEC. 2. FINDINGS.

  The Congress finds as follows:
          (1) There are sectors of the United States economy, including 
        public transportation, parking meters, vending machines and 
        low-dollar value transactions, in which the use of a $1 coin is 
        both useful and desirable for keeping costs and prices down.
          (2) For a variety of reasons, the new $1 coin introduced in 
        2000 has not been widely sought-after by the public, leading to 
        higher costs for merchants and thus higher prices for 
        consumers.
          (3) The success of the 50 States Commemorative Coin Program 
        for circulating quarter dollars shows that a rotating design on 
        a United States circulating coin radically increases demand for 
        the coin, rapidly pulling it through the economy.
          (4) The 50 States Commemorative Coin Program also has been an 
        educational tool, teaching both Americans and visitors 
        something about each State for which a quarter has been issued.
          (5) A national survey and study by the General Accounting 
        Office has indicated that many Americans who do not seek, or 
        who reject, the new $1 coin for use in commerce would actively 
        seek the coin if an attractive, educational rotating design 
        were to be struck on the coin.
          (6) The President is the leader of our tripartite government 
        and the President's spouse has often set the social tone for 
        the White House while spearheading and highlighting important 
        issues for the country.
          (7) Many people cannot name all of the Presidents, and fewer 
        can name the spouses, nor can many people accurately place each 
        President in the proper time period of American history.
          (8) First Spouses have not generally been recognized on 
        American coinage.
          (9) Sacagewea, as currently represented on the new $1 coin, 
        is an important symbol of American history.
          (10) In order to revitalize the design of United States 
        coinage and return circulating coinage to its position as not 
        only a necessary means of exchange in commerce but also as an 
        object of aesthetic beauty in its own right, it is appropriate 
        to move many of the mottos and emblems, the inscription of the 
        year, and the so-called ``mint marks'' that currently appear on 
        the 2 faces of each circulating coin to the edge of the coin, 
        which would allow larger and more dramatic artwork on the coins 
        reminiscent of the so-called ``Golden Age of Coinage'' in the 
        United States, at the beginning of the Twentieth Century, 
        initiated by President Theodore Roosevelt, with the assistance 
        of noted sculptors and medallic artists James Earle Fraser and 
        Augustus St. Gaudens.
          (11) Placing inscriptions on the edge of coins, known as 
        edge-incusing, is a hallmark of modern coinage and is common in 
        large-volume production of coinage elsewhere in the world, such 
        as the 2,700,000,000 2-Euro coins in circulation and coins of 
        the People's Republic of China, but it has not been done on a 
        large scale in United States coinage in recent years.
          (12) Bullion coins are a valuable tool for the investor and, 
        in some cases, an important aspect of coin collecting.
          (13) Although the Congress has authorized the Secretary of 
        the Treasury to issue gold coins with a purity of 99.99 
        percent, the Secretary has not done so.
          (14) By commencing the issuance of the presidential $1 coins 
        in 2006, coins issued in uncirculated or proof qualities that 
        commemorate the presidency of Thomas Jefferson may 
        appropriately be sold in sets with the coins of similar 
        qualities that are issued in 2006 and commemorate the Lewis and 
        Clark expedition, together with $1 coins that bear the image of 
        Sacagewea and are struck for numismatic purposes under section 
        5112(n)(1)(B) of title 31, United States Code (as amended by 
        section 3 of this Act).

SEC. 3. PRESIDENTIAL $1 COIN PROGRAM.

  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 $1 Coins Honoring Each of 
the Presidents of the United States.--
          ``(1) Redesign beginning in 2006.--
                  ``(A) In general.--Notwithstanding subsection (d) and 
                in accordance with the provisions of this subsection, 
                $1 coins issued during the period beginning January 1, 
                2006, and ending upon the termination of the program 
                under paragraph (6) shall have designs on the obverse 
                selected in accordance with paragraph (2)(B) which are 
                emblematic of the Presidents of the United States and a 
                design on the reverse selected in accordance with 
                paragraph (2)(A).
                  ``(B) Transition provision.--Notwithstanding 
                subparagraph (A), the Secretary may continue to mint 
                and issue $1 coins in 2006 which bear the design in 
                effect before the redesign required under this 
                subsection, as required for numismatic purposes and to 
                ensure a smooth transition into the presidential coin 
                program under this subsection.
          ``(2) Design requirements.--The $1 coins issued in accordance 
        with paragraph (1)(A) shall meet the following design 
        requirements:
                  ``(A) Coin reverse.--The design on the reverse shall 
                bear--
                          ``(i) a likeness of the Statue of Liberty 
                        extending to the rim of the coin and large 
                        enough to provide a dramatic representation of 
                        Liberty while not being large enough to create 
                        the impression of a `2-headed' coin;
                          ``(ii) the inscription `$1' ; and
                          ``(iii) the inscription `United States of 
                        America'.
                  ``(B) Coin obverse.--The design on the obverse shall 
                contain the name and likeness of a President of the 
                United States and basic information about the 
                President, including the dates or years of the term of 
                office of such President and a number indicating the 
                order of the period of service in which the President 
                served.
                  ``(C) Edge-incused inscriptions.--The inscription of 
                the year of minting or issuance of the coin and the 
                inscriptions `E Pluribus Unum' and `In God We Trust' 
                shall be edge-incused into the coin.
                  ``(D) Inscriptions of `liberty'.--Notwithstanding the 
                2d sentence of subsection (d)(1), because the use of a 
                design bearing the likeness of the Statue of Liberty on 
                the reverse of the coins issued under this subsection 
                adequately conveys the concept of Liberty, the 
                inscription of `Liberty' shall not appear on the coins.
                  ``(E) Prohibition on sitting president in series.--No 
                coin issued under this subsection may bear the image of 
                a President who has not completed such President's 
                period of service.
          ``(3) Issuance of coins commemorating presidents.--
                  ``(A) Order of issuance.--The coins issued under this 
                subsection commemorating Presidents of the United 
                States shall be issued in the order of the period of 
                service of each President, beginning with President 
                George Washington.
                  ``(B) Treatment of period of service.--
                          ``(i) In general.--Subject to clause (ii), 
                        only 1 coin design shall be issued for a period 
                        of service for any President, no matter how 
                        many consecutive terms of office the President 
                        served.
                          ``(ii) Nonconsecutive terms.--If a President 
                        has served during 2 or more nonconsecutive 
                        periods of service, a coin shall be issued 
                        under this subsection for each such 
                        nonconsecutive period of service.
          ``(4) Issuance of coins commemorating 4 presidents during 
        each year of the period.--
                  ``(A) In general.--The designs for the $1 coins 
                issued during each year of the period referred to in 
                paragraph (1) shall be emblematic of 4 Presidents until 
                the year the program terminates.
                  ``(B) Number of each of 4 circulating coin designs in 
                each year.--The Secretary shall prescribe, on the basis 
                of such factors as the Secretary determines to be 
                appropriate, the number of $1 coins that shall be 
                issued with each of the designs selected for each year 
                of the period referred to in paragraph (1).
          ``(5) Issuance of numismatic coins.--The Secretary may mint 
        and issue such number of $1 coins of each design selected under 
        this subsection in uncirculated and proof qualities as the 
        Secretary determines to be appropriate.
          ``(6) Termination of program.--The issuance of coins under 
        this subsection shall terminate when each President who has 
        finished such President's period of service has been so honored 
        and may not be resumed except by an Act of Congress.
          ``(7) Reversion to preceding design.--Upon the termination of 
        the issuance of coins under this subsection, the design of the 
        $1 coin shall revert to the design on $1 coins being issued 
        immediately before the issuance of coins under this 
        subsection.''.

SEC. 4. FIRST SPOUSE BULLION COIN PROGRAM.

  Section 5112 of title 31, United States Code, is amended by inserting 
after subsection (n) (as added by section 3 of this Act) the following 
new subsection:
  ``(o) First Spouse Bullion Coin Program.--
          ``(1) In general.--During the same period in which the $1 
        coins are issued under subsection (n) which are emblematic of 
        the Presidents of the United States, the Secretary of the 
        Treasury shall issue bullion coins under this subsection that 
        are emblematic of the spouse of each such President.
          ``(2) Specifications.--The coins issued under this subsection 
        shall--
                  ``(A) have the same diameter as the $1 coins 
                described in subsection (n);
                  ``(B) weigh 0.5 ounce; and
                  ``(C) contain 99.99 percent pure gold.
          ``(3) Design requirements.--
                  ``(A) Coin obverse.--The design on the obverse of 
                each coin issued under this subsection shall contain--
                          ``(i) the name and likeness of a person who 
                        was a spouse of a President during the 
                        President's period of service;
                          ``(ii) an inscription of the years during 
                        which such person was the spouse of a President 
                        during the President's period of service; and
                          ``(iii) the number indicating the order of 
                        the period of service in which such President 
                        served.
                  ``(B) Coin reverse.--The design on the reverse of 
                each coin issued under this subsection shall bear--
                          ``(i) images emblematic of the life and work 
                        of the First Spouse whose image is borne on the 
                        obverse;
                          ``(ii) the inscription `United States of 
                        America'.
                  ``(C) Designated denomination.--Each coin issued 
                under this subsection shall bear, on the reverse, an 
                inscription of the nominal denomination of the coin 
                which shall be `$10'.
                  ``(D) Design in case of no first spouse.--In the case 
                of any President who served without a spouse--
                          ``(i) the image on the obverse of the bullion 
                        coin corresponding to the $1 coin relating to 
                        such President shall be an image emblematic of 
                        the concept of `Liberty'--
                                  ``(I) as represented on a United 
                                States coin issued during the period of 
                                service of such President; or
                                  ``(II) as represented, in the case of 
                                President Chester Alan Arthur, by a 
                                design incorporating the name and 
                                likeness of Alice Paul, a leading 
                                strategist in the suffrage movement, 
                                who was instrumental in gaining women 
                                the right to vote upon the adoption of 
                                the 19th amendment and thus participate 
                                in the election of future Presidents, 
                                and who was born on January 11, 1885, 
                                during the term of President Arthur; 
                                and
                          ``(ii) the reverse of such bullion coin shall 
                        be of a design representative of themes of such 
                        President, except that in the case of the 
                        bullion coin referred to in clause (i)(II) the 
                        reverse of such coin shall be representative of 
                        the suffrage movement.
                  ``(E) Design and coin for each spouse.--A separate 
                coin shall be designed and issued under this section 
                for each person who was the spouse of a President 
                during any portion of a term of office of such 
                President.
                  ``(F) Inscriptions.--Each bullion coin issued under 
                this subsection shall bear the inscription of the year 
                of minting or issuance of the coin and such other 
                inscriptions as the Secretary may determine to be 
                appropriate.
          ``(4) Sale of bullion coins.--Each bullion coin issued under 
        this subsection shall be sold for an amount the Secretary of 
        the Treasury determines to be appropriate that is equal to or 
        greater than the sum of--
                  ``(A) the face value of the coins; and
                  ``(B) the cost of designing and issuing the coins 
                (including labor, materials, dies, use of machinery, 
                overhead expenses, marketing, and shipping).
          ``(5) Issuance of coins commemorating first spouses.--
                  ``(A) In general.--The bullion coins issued under 
                this subsection with respect to any spouse of a 
                President shall be issued on the same schedule as the 
                $1 coin issued under subsection (n) with respect to 
                such President.
                  ``(B) Maximum number of bullion coins for each 
                design.--The Secretary shall--
                          ``(i) prescribe, on the basis of such factors 
                        as the Secretary determines to be appropriate, 
                        the maximum number of bullion coins that shall 
                        be issued with each of the designs selected 
                        under this subsection; and
                          ``(ii) announce, before the issuance of the 
                        bullion coins of each such design, the maximum 
                        number of bullions coins of that design that 
                        will be issued.
                  ``(C) Termination of program.--No bullion coin may be 
                issued under this subsection after the design on the $1 
                coin reverts, in accordance with subsection (n)(7), to 
                the design on $1 coins being issued immediately before 
                the issuance of coins under subsection (n).
          ``(6) Quality of coins.--The bullion coins shall be issued in 
        both proof and uncirculated qualities.
          ``(7) Source of gold bullion.--The Secretary shall acquire 
        gold for the coins issued under this subsection by purchase of 
        gold mined from natural deposits in the United States, or in a 
        territory or possession of the United States, within 1 year 
        after the month in which the ore from which it is derived was 
        mined. The Secretary shall pay not more than the average world 
        price for the gold.
          ``(8) Bronze medals.--The Secretary may strike and sell 
        bronze medals that bear the likeness of the bullion coins 
        authorized under this subsection, at a price, size, and weight, 
        and with such inscriptions, as the Secretary determines to be 
        appropriate.''.

SEC. 5. SENSE OF THE CONGRESS.

  It is the sense of the Congress that--
          (1) the American tradition of not issuing a coin with the 
        image of a living person has served the country well and 
        deserves to be continued as a general practice;
          (2) the full circulation potential and cost-savings benefit 
        projections for the presidential $1 coin program are not likely 
        to be achieved unless the coins are delivered in ways useful to 
        ordinary commerce;
          (3) in order for the Presidential $1 Coin Program to achieve 
        maximum success--
                  (A) the coin should be as attractive as possible; and
                  (B) the Director of the United States Mint should 
                take all reasonable steps to ensure that the coins 
                described in section 5112(n) of title 31, United States 
                Code, remain tarnish-free for as long as possible 
                without incurring undue expense;
          (4) if the Secretary of the Treasury determines to include on 
        any $1 coin minted under section 5112(n) of title 31, United 
        States Code (as added by section 3 of this Act) a mark denoting 
        the United States Mint facility at which the coin was struck, 
        such mark should be edge-incused;
          (5) at such time as the Board of Governors of the Federal 
        Reserve System determines to be appropriate, after consultation 
        with the Secretary of the Treasury and the submission of notice 
        to the Congress, the Board should separate and sequester, and 
        not put back into circulation, any $1 coin that comes into the 
        possession of the Board or any Federal reserve bank and does 
        not bear--
                  (A) a design specified under section 5112(n) of title 
                31, United States Code; or
                  (B) the design referred to in paragraph (7) of such 
                section;
          (6) in connection with the introduction of the $1 coins under 
        the presidential $1 coin program--
                  (A) the coins should not be introduced with an overly 
                expensive taxpayer-funded public relations campaign; 
                and
                  (B) the Director of the United States Mint, a bureau 
                in the Department of the Treasury, should work with 
                consumer groups, media outlets, and schools to ensure 
                an adequate amount of news coverage about the start of 
                the coin program so consumers will know of the 
                availability of the coins;
          (7) the Board of Governors of the Federal Reserve System and 
        the Secretary of the Treasury should take steps to ensure that 
        an adequate supply of $1 coins are available for commerce and 
        collectors at such places and in such quantities as are 
        appropriate by--
                  (A) meeting, at least monthly on a regular basis, 
                with a coin users group that includes representatives 
                of merchants who would benefit from the increased usage 
                of $1 coins, vending machine and other coin acceptor 
                manufacturers, vending machine owners and operators, 
                transit officials, municipal parking officials, 
                depository institutions, coin and currency handlers, 
                armored-car operators, and coin collectors and dealers 
                to accurately gauge demand for coins and to anticipate 
                and eliminate obstacles to the easy and efficient 
                distribution and circulation of coins issued under the 
                Presidential $1 Coin Program as well as all other 
                circulating coins;
                  (B) submitting a semiannual report to the Congress 
                containing an assessment of the remaining obstacles to 
                the efficient and timely circulation of coins, and 
                particularly coins issued under the Presidential $1 
                Coin Program, together with such recommendations for 
                legislative action the Board and the Secretary may 
                determine to be appropriate;
                  (C) ensuring that as many vending machines and other 
                automated coin-accepting devices in the United States 
                as possible accept coins issued under the Presidential 
                $1 Coin Program and carry notices of such 
                acceptability; and
                  (D) ensuring that--
                          (i) all institutions that want unmixed 
                        supplies of each newly-issued design of $1 
                        coins under the Presidential $1 Coin Program 
                        are able to obtain such unmixed supplies; and
                          (ii) circulating coins will be available for 
                        ordinary commerce in packaging of sizes and 
                        types appropriate for and useful to ordinary 
                        commerce, including rolled coins; and
          (8) the Director of the United States Mint should take all 
        steps necessary to expand the marketplace for bullion coins, 
        and reduce barriers to the sale of bullion coins, by ensuring 
        that--
                  (A) the greatest number possible of reputable, 
                reliable, and responsible dealers are qualified to 
                offer for sale all bullion coins struck and issued by 
                the United States Mint; and
                  (B) all such dealers and their customers have equal 
                and timely access to all new issues of such bullion 
                coins.

                          Purpose and Summary

    H.R. 3916, the Presidential $1 Coin Act of 2004, will 
improve demand for and thus circulation of the current 1-dollar 
coin, with the intent of saving money for business and thus 
restraining price increases for consumers. Specifically, the 
legislation directs the Secretary of the Treasury to redesign 
the 1-dollar coin over an appropriate period, beginning in 
2006, issuing 4 different designs a year. Each design is to 
depict the image and pertinent information about a President of 
the United States, in order of service. The reverse of the coin 
will depict an image of the Statue of Liberty. Additionally, 
the legislation directs the Treasury Secretary to begin 
issuing, concurrently with the Presidential dollars, pure-gold 
bullion coins depicting the First Spouses. The bill also 
proposes a number of methods to increase the circulation of the 
dollar coin.

                  Background and Need for Legislation

    Although it is clear that a widely circulating 1-dollar 
coin would be useful in ordinary commerce for low-dollar-value 
transactions, recent attempts to introduce such a coin have 
been unsuccessful. The so-called Susan B. Anthony dollar, 
issued beginning in 1979, was made of identical material and 
had identical edge treatment to the quarter-dollar, and despite 
the size difference between the two coins, sighted people as 
well as the visually impaired had difficulty discerning the 
difference between the coins.
    More recently, with the enactment of the 50 States 
Commemorative Coin Program Act (Public law 105-124), Congress 
sought to address those problems by prescribing that the coin 
be golden in color--to make a visual difference from the 
quarter--and have a distinctive edge, with tactile features 
that would aid the visually impaired in identifying the coin. 
However, despite the success of those efforts and a large 
advertising campaign, demand and availability for the so-called 
``golden'' dollar first issued in 2000 fell drastically after 
the initial enthusiasm. Two GAO reports (``U.S. Coins: Public 
Views on Changing Coin Design,'' GAO-03-206; ``New Dollar Coin: 
Marketing Campaign Raise Public Awareness but Not Widespread 
Use,'' GAO-02-896) and a hearing by the Subcommittee on 
Domestic and International Monetary Policy, Trade and 
Technology highlighted several reasons, including the continued 
circulation of the Susan B. Anthony dollar, lack of 
availability to businesses in packaging of appropriate sizes, 
and lack of acceptance by many vending machines.
    H.R. 3916 attempts to address all of these barriers to 
circulation, as well as creating a demand for the coin similar 
to that for the 50-State quarter program. That program more 
than tripled demand for the quarter-dollar because both 
professional and amateur collectors alike sought the various 
designs. According to the results of a survey commissioned by 
the GAO, a 1-dollar coin program with changing designs could 
help increase the use of the dollar coin (``U.S. Coins'', Id. 
pp. 19-28). The legislation adopts that approach, with the 
images of the Presidents on the obverse combined with use of 
the Statue of Liberty on the reverse. Additionally, the 
legislation calls for a series of pure-gold bullion coins 
featuring images of the First Spouses, to be issued in the same 
order and rate as the Presidential dollars, so that the dollar 
and bullion coins could, for example, be sold in pairs.
    In keeping with the educational theme established by the 
50-State quarter program, one president (to date) would have 
two coin designs, as he served non-sequential terms, two 
Presidents would have two spouse coins as they remarried while 
in office and several would have no spouse coins, as they were 
not married while in office. For all of those except Chester A. 
Arthur, the coin would feature on the face the image of Liberty 
as represented by a circulating coin of the period; in the case 
of President Arthur, the image on the face would be that of 
Alice Paul, a suffragette strategist born during his term. 
Bronze copies of the bullion coins would be made available at a 
nominal cost for those who wanted to collect sets of First 
Spouses or Presidents andtheir spouses but did not wish to pay 
for the cost of a half-ounce of pure gold, plus processing and 
marketing costs.

                                Hearings

    The Subcommittee on Domestic and International Monetary 
Policy, Trade and Technology held a hearing on April 28, 2004 
entitled ``Money Matters: Coin and Currency Design and 
Counterfeiting issues.'' The following witnesses testified: Ms. 
Henrietta H. Fore, Director, United States Mint; Mr. Thomas A. 
Ferguson, Director, Bureau of Engraving and Printing; Mr. Bruce 
Townsend, Deputy Assistant Director, Office of Investigations, 
United States Secret Service; Mr. Jeffrey C. Marquardt, 
Assistant Director, Reserve Bank Operations and Payment 
Systems, Board of Governors of the Federal Reserve System; Mr. 
Thomas C. McMahon, East Coast Director, National Automatic 
Merchandising Association; Mr. Thomas Noe, Vintage Coin and 
Collectibles and a member of the Citizens Coinage Advisory 
Committee; Mr. Jay W. Johnson, former Director of the Mint and 
now Director of Business Development, Collectors Universe Inc.; 
and Mr. Chung Chung Tam, Revenue Systems Engineer, Chicago 
Transit Authority, representing the American Public 
Transportation Association.

                        Committee Consideration

    The Subcommittee on Domestic and International Monetary 
Policy, Trade, and Technology met in open session on March 29, 
2004, and approved H.R. 3916 for full Committee consideration, 
with an amendment, by a voice vote.
    The Committee on Financial Services met in open session on 
June 3, 2004, and ordered H.R. 3916 reported to the House, with 
an amendment, by a voice vote.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. No 
record votes were taken with in conjunction with the 
consideration of this legislation. A motion by Mr. Oxley to 
report the bill to the House with a favorable recommendation 
was agreed to by a voice vote.
    The Committee considered the following amendments:

          An amendment in the nature of a substitute by Mr. 
        Castle, No. 1, making various substantive and technical 
        changes to the bill, was agreed to by a voice vote.
          An amendment to the amendment in the nature of a 
        substitute by Mr. Lucas, No. 1a, replacing Lady Liberty 
        with the symbol of Apollo 11 on the back of the $1 
        coin, was not agreed to by a voice vote.
          An amendment to the amendment in the nature of a 
        substitute by Mr. Lucas, No. 1b, striking provisions 
        relating to edge-incusing, was not agreed to by a voice 
        vote.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee held a hearing and made 
findings that are reflected in this report.

                    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 in this legislation to design, strike, and issue 
circulating 1-dollar coins and pure-gold bullion coins 
featuring, respectively, images of the Presidents of the United 
States and their spouses. The coins shall be issued on a 
schedule representing the order in which the Presidents served, 
and 4 different Presidential dollars shall be issued per year 
until the next design issued would relate to the President then 
in office. The Secretary and the Federal Reserve Board shall 
consider appropriate steps to reduce barriers to circulation 
and to improve circulation of the 1-dollar coin so that it will 
be readily available for ordinary commerce.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that this 
legislation would result in budget authority, entitlement 
authority, or tax expenditures or revenues consistent with the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to section 402 of the Congressional 
Budget Act of 1974.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 23, 2004.
Hon. Michael G. Oxley,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3916, the 
Presidential $1 Coin Act of 2004.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                         Elizabeth Robinson
                               (For Douglas Holtz-Eakin, Director).
    Enclosure.

H.R. 3916--Presidential $1 Coin Act of 2004

    Summary: H.R. 3916 would authorize the U.S. Mint to make 
changes to the design of the $1 coin and issue $10 gold bullion 
coins. CBO estimates that enacting this bill would decrease 
direct spending by $6 million over the 2005-2014 period. (The 
bill would not affect revenues.) H.R. 3916 contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act (UMRA) and would not affect the 
budgets of state, local, or tribal governments.
    Major provisions: Beginning in 2006, H.R. 3916 would direct 
the Secretary of the Treasury to replace the current Golden 
Dollar coin with a series of $1 coins commemorating all former 
U.S. Presidents. The coins would have an image of a former 
President and the reverse would feature an image of the Statue 
of Liberty. Under the bill, the Mint could produce additional 
quantities of the Golden Dollar coins until the new coin was 
ready for circulation. The Mint would issue four different $1 
coins a year in the order of the period of service of each 
President starting with George Washington. The bill would 
authorize the Mint to sell $1 coins in proof and uncirculated 
versions. H.R. 3916 would not terminate production of the $1 
bill.
    In addition, H.R. 3916 would direct the U.S. Mint to 
produce a gold bullion coin honoring the spouses of former 
Presidents. The new gold bullion coins would be produced in 
sequence with the $1 Presidential coins. In addition, the bill 
would authorize the Mint to sell bronze copies of the gold 
bullion coin.
    Estimated costs to the Federal Government: The estimated 
budgetary impact of H.R. 3916 is shown in the following table. 
The costs of this legislation fall within budget function 800 
(general government).

----------------------------------------------------------------------------------------------------------------
                                                          By fiscal year, in millions of dollars--
                                           ---------------------------------------------------------------------
                                             2005   2006   2007   2008   2009   2010   2011   2012   2013   2014
----------------------------------------------------------------------------------------------------------------
                                           CHANGES IN DIRECT SPENDING

Presidential $1 Coin:
    Estimated Budget Authority............      2      1      0      0      0      0      0      0      0      0
    Estimated Outlays.....................      2      1      0      0      0      0      0      0      0      0
First Spouse Gold Bullion Coin:
    Estimated Budget Authority............      0      *     -1     -1     -1     -1     -1     -1     -1     -1
    Estimated Outlays.....................      0      *     -1     -1     -1     -1     -1     -1     -1     -1
Net Changes in Direct Spending Under H.R.
 3916:
    Estimated Budget Authority............      2      *     -1     -1     -1     -1     -1     -1     -1     -1
    Estimated Outlays.....................      2      *     -1     -1     -1     -1     -1     -1     -1     -1
----------------------------------------------------------------------------------------------------------------
Note.--*= offsetting receipts of less than $500,000.

    In addition to the budgetary effects summarized in the 
table, by increasing the value of coins held by the public, 
H.R. 3916 also would provide the government with additional 
resources for financing the federal deficit. Seigniorage (or 
profit)--the difference between the face value of the coins and 
the cost of production--reduces the amount the government would 
otherwise need to borrow from the public to finance the federal 
budget deficit. CBO estimates that seigniorage resulting from 
the value of additional coins in circulation under the bill 
would amount to about $340 million over the 2005-2014 period. 
Under the principles established by the President's 1967 
Commission on Budget Concepts, seigniorage does not directly 
affect the budget but is treated as a means of financing the 
deficit.

Basis of estimate

            Direct spending
    Presidential $1 Coin Program. H.R. 3916 would replace the 
current Golden Dollar coin with a new $1 Presidential coin. The 
Presidential coin would have distinctive tactile andvisual 
features that include moving the issue date, mint mark and other mottos 
to the edge of the coin. The bill would authorize the Mint to produce 
quantities of the Golden Dollar coin until the new coin was ready for 
circulation. According to the Mint, it would need at least 18 months to 
design, test, and produce a new $1 Presidential coin for circulation. 
Thus, assuming this bill is enacted within the next several months, CBO 
expects that the first two new coins would begin circulating by the 
middle of fiscal year 2006. CBO estimates start-up costs for producing 
a new $1 coin would increase direct spending by about $3 million over 
the 2005-2006 period, based on the experience of prior new issues by 
the Mint.
    H.R. 3916 would authorize the Mint to include the new $1 
coin in collector coin sets sold to the public. Adding a new $1 
coin to the Mint's current sets could increase offsetting 
collections to the U.S. Mint Public Enterprise Fund if the new 
coin increases collectors' interest in the sets. However, any 
increase in offsetting collections from the sale of commercial 
products would be available to the Mint to retain and spend and 
would have a negligible net budgetary impact over time.
    First Spouse Bullion Coin. H.R. 3916 would direct the Mint 
to produce a gold bullion coin, for investors, honoring the 
spouses of former Presidents. The new gold bullion coin would 
be produced in the same sequence as the $1 Presidential coins. 
The bullion coin would feature an image of the spouse of the 
former President and the reverse would feature an image of her 
life and work. CBO expects that the first gold bullion coins 
would be ready at the same time as the $1 Presidential coin.
    Public Law 104-52, which establishes the U.S. Mint Public 
Enterprise Fund, requires the Mint to transfer any excess funds 
to the general fund of the Treasury at least annually. Based on 
information from the Mint and the numismatic community, CBO 
expects that the First Spouse gold bullion coin would generate 
sales similar to recent commemorative coins. In addition, the 
Mint could sell bronze duplicates to the public; however, based 
on the sales, of previous duplicates, we do not expect that 
those sales would be large. CBO estimates that the Mint would 
produce about 10,000 gold bullion coins annually generating 
about $1 million a year in excess funds that would be recorded 
in the budget as offsetting receipts.
            Seigniorage
    In addition to the bill's effects on direct spending, by 
increasing the public's holding of dollar coins, H.R. 3916 also 
would result in additional federal resources for financing the 
deficit. The seigniorage, or profit, from placing the new coins 
in circulation would reduce the amount the government would 
otherwise borrow from the public to finance the deficit. By 
substituting a new $1 Presidential coin for the current Golden 
Dollar coin, the legislation would increase the seigniorage 
earned if the new $1 coin is more widely circulated.A General 
Accounting Office report (GAO-02-896, September 2003) noted that, after 
a multimillion dollar marketing and advertising campaign, the Golden 
Dollar, like the Susan B. Anthony $1 coin, has not achieved widespread 
use. It has increased the public's interest in collecting the $1 coin 
but is not widely circulating. A barrier to the public's acceptance of 
a $1 coin is the continued circulation of the $1 bill, which would not 
be eliminated by H.R. 3916.
    The Mint's 50 State Quarters program, involving a set of 
recurring designs commemorating each state, has been credited 
with generating renewed interest in holding more coins by 
collectors and the public. The production of quarters increased 
from 1.7 billion coins in fiscal year 1998 to over 6 billion in 
fiscal year 2000 when the 50 State Quarters program began. By 
fiscal year 2003, demand for quarters had fallen to about 2.5 
billion quarters. The Mint estimates that the 50 State Quarters 
program has generated about $4 billion in seigniorage since the 
program began in 1999.
    Taking into account the experience of the 50 State Quarters 
program, information from the numismatic community, and the 
public's continued resistance to the use of dollar coins, CBO 
expects that the new $1 Presidential coin would increase the 
public's interest in collecting coins but it would continue to 
face barriers to widespread circulating use. CBO expects that 
most of the demand for the $1 Presidential coin would be from 
collectors. According to the Mint, the federal government is 
currently putting into circulation about 55 million Golden 
Dollar coins annually, with seigniorage of 82 cents per coin. 
CBO expects that demand for the new $1 Presidential coin would 
triple the current demand for the dollar coin to about 150 
million annually in 2007, and then follow the experience of the 
50 State Quarters program. Hence, CBO estimates that replacing 
the Golden Dollar with the $1 Presidential coin would increase 
seigniorage by $340 million over the 2005-2014 period.
    Intergovernmental and private-sector impact: H.R. 3916 
contains no intergovernmental mandates as defined in UMRA and 
would not affect the budgets of state, local, or tribal 
governments.
    Estimate prepared by: Federal Costs: Matthew Pickford; 
Impact on State, Local, and Tribal Governments: Sarah Puro; and 
Impact on the Private Sector: Paige Piper/Bach.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional Authority of Congress to enact this legislation 
is provided by Article 1, section 8, clause 1 (relating to the 
general welfare of the United States) clause 3 (relating to the 
power to regulate interstate commerce), and clause 5 (relating 
to the power to coin Money).

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    This section establishes the short title of the bill, the 
``Presidential $1 Coin Act of 2004.''

Section 2. Findings

    This section makes certain findings by Congress.

Section 3. Presidential $1 Coin Program

    This section directs the Treasury Secretary, beginning in 
2006, to issue 1-dollar coins with regularly changing designs 
representing the images of the Presidents of the United States, 
in the order in which they served. Section 3 also specifies 
that the design on the reverse of the coin is to be an image of 
the Statue of Liberty, and that the date of issue and the 
mottoes ``E Pluribus Unum'' and ``In God We Trust'' should be 
struck into the edge of the coin rather than one of the faces.
    Further, it permits the continued striking of the current 
design of the coin for an orderly transition, and specifies 
that the program ends and cannot be restarted except by Act of 
Congress when the next coin to be issued would represent on the 
obverse the image of the President still in office at the time 
it would be issued. Finally, section 3 specifies that 4 
different designs are to be issued per year, and authorizes the 
striking and issuing of numismatic versions of the coins.

Section 4. First Spouse Bullion Coin Program

    Section 4 directs the Secretary of the Treasury to strike 
and make available for sale 99.99 percent pure gold bullion 
coins bearing the images of First Spouses, on the same schedule 
as the Presidential Dollars, with images of the spouses on the 
obverse and of works associated with them on the reverse. It 
also specifies that in the instances where President remarried 
in office, more than one bullion coin could be issued during 
the period of issue of that President's dollar, and specifies 
that in the case of Presidents who were not married in office, 
the bullion coin bear the image of Liberty as represented on a 
circulating coin of the period, except that in the case of 
President Chester A. Arthur the bullion coin would bear the 
image of Liberty as represented by suffragette strategist Alice 
Paul, born during his term. Finally, the provision directs the 
Treasury Secretary to announce maximum mintages of each bullion 
coin prior to issue and authorizes the striking of affordable 
bronze copies of the coin.

Section 5. Sense of Congress

    Section 5 establishes the sense of Congress regarding ways 
to improve circulation of the dollar coin. This section also 
suggests regular reports to Congress on any legislative efforts 
that might be necessary.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italic and existing law in which no change is 
proposed is shown in roman):

              SECTION 5112 OF TITLE 31, UNITED STATES CODE


Sec. 5112. Denominations, specifications, and design of coins

  (a) * * *

           *       *       *       *       *       *       *

  (n) Redesign and Issuance of Circulating $1 Coins Honoring 
Each of the Presidents of the United States.--
          (1) Redesign beginning in 2006.--
                  (A) In general.--Notwithstanding subsection 
                (d) and in accordance with the provisions of 
                this subsection, $1 coins issued during the 
                period beginning January 1, 2006, and ending 
                upon the termination of the program under 
                paragraph (6) shall have designs on the obverse 
                selected in accordance with paragraph (2)(B) 
                which are emblematic of the Presidents of the 
                United States and a design on the reverse 
                selected in accordance with paragraph (2)(A).
                  (B) Transition provision.--Notwithstanding 
                subparagraph (A), the Secretary may continue to 
                mint and issue $1 coins in 2006 which bear the 
                design in effect before the redesign required 
                under this subsection, as required for 
                numismatic purposes and to ensure a smooth 
                transition into the presidential coin program 
                under this subsection.
          (2) Design requirements.--The $1 coins issued in 
        accordance with paragraph (1)(A) shall meet the 
        following design requirements:
                  (A) Coin reverse.--The design on the reverse 
                shall bear--
                          (i) a likeness of the Statue of 
                        Liberty extending to the rim of the 
                        coin and large enough to provide a 
                        dramatic representation of Liberty 
                        while not being large enough to create 
                        the impression of a ``2-headed'' coin;
                          (ii) the inscription ``$1'' ; and
                          (iii) the inscription ``United States 
                        of America''.
                  (B) Coin obverse.--The design on the obverse 
                shall contain the name and likeness of a 
                President of the United States and basic 
                information about the President, including the 
                dates or years of the term of office of such 
                President and a number indicating the order of 
                the period of service in which the President 
                served.
                  (C) Edge-incused inscriptions.--The 
                inscription of the year of minting or issuance 
                of the coin and the inscriptions ``E Pluribus 
                Unum'' and ``In God We Trust'' shall be edge-
                incused into the coin.
                  (D) Inscriptions of ``liberty''.--
                Notwithstanding the 2d sentence of subsection 
                (d)(1), because the use of a design bearing the 
                likeness of the Statue of Liberty on the 
                reverse of the coins issued under this 
                subsection adequately conveys the concept of 
                Liberty, the inscription of ``Liberty'' shall 
                not appear on the coins.
                  (E) Prohibition on sitting president in 
                series.--No coin issued under this subsection 
                may bear the image of a President who has not 
                completed such President's period of service.
          (3) Issuance of coins commemorating presidents.--
                  (A) Order of issuance.--The coins issued 
                under this subsection commemorating Presidents 
                of the United States shall be issued in the 
                order of the period of service of each 
                President, beginning with President George 
                Washington.
                  (B) Treatment of period of service.--
                          (i) In general.--Subject to clause 
                        (ii), only 1 coin design shall be 
                        issued for a period of service for any 
                        President, no matter how many 
                        consecutive terms of office the 
                        President served.
                          (ii) Nonconsecutive terms.--If a 
                        President has served during 2 or more 
                        nonconsecutive periods of service, a 
                        coin shall be issued under this 
                        subsection for each such nonconsecutive 
                        period of service.
          (4) Issuance of coins commemorating 4 presidents 
        during each year of the period.--
                  (A) In general.--The designs for the $1 coins 
                issued during each year of the period referred 
                to in paragraph (1) shall be emblematic of 4 
                Presidents until the year the program 
                terminates.
                  (B) Number of each of 4 circulating coin 
                designs in each year.--The Secretary shall 
                prescribe, on the basis of such factors as the 
                Secretary determines to be appropriate, the 
                number of $1 coins that shall be issued with 
                each of the designs selected for each year of 
                the period referred to in paragraph (1).
          (5) Issuance of numismatic coins.--The Secretary may 
        mint and issue such number of $1 coins of each design 
        selected under this subsection in uncirculated and 
        proof qualities as the Secretary determines to be 
        appropriate.
          (6) Termination of program.--The issuance of coins 
        under this subsection shall terminate when each 
        President who has finished such President's period of 
        service has been so honored and may not be resumed 
        except by an Act of Congress.
          (7) Reversion to preceding design.--Upon the 
        termination of the issuance of coins under this 
        subsection, the design of the $1 coin shall revert to 
        the design on $1 coins being issued immediately before 
        the issuance of coins under this subsection.
  (o) First Spouse Bullion Coin Program.--
          (1) In general.--During the same period in which the 
        $1 coins are issued under subsection (n) which are 
        emblematic of the Presidents of the United States, the 
        Secretary of the Treasury shall issue bullion coins 
        under this subsection that are emblematic of the spouse 
        of each such President.
          (2) Specifications.--The coins issued under this 
        subsection shall--
                  (A) have the same diameter as the $1 coins 
                described in subsection (n);
                  (B) weigh 0.5 ounce; and
                  (C) contain 99.99 percent pure gold.
          (3) Design requirements.--
                  (A) Coin obverse.--The design on the obverse 
                of each coin issued under this subsection shall 
                contain--
                          (i) the name and likeness of a person 
                        who was a spouse of a President during 
                        the President's period of service;
                          (ii) an inscription of the years 
                        during which such person was the spouse 
                        of a President during the President's 
                        period of service; and
                          (iii) the number indicating the order 
                        of the period of service in which such 
                        President served.
                  (B) Coin reverse.--The design on the reverse 
                of each coin issued under this subsection shall 
                bear--
                          (i) images emblematic of the life and 
                        work of the First Spouse whose image is 
                        borne on the obverse;
                          (ii) the inscription ``United States 
                        of America''.
                  (C) Designated denomination.--Each coin 
                issued under this subsection shall bear, on the 
                reverse, an inscription of the nominal 
                denomination of the coin which shall be 
                ``$10''.
                  (D) Design in case of no first spouse.--In 
                the case of any President who served without a 
                spouse--
                          (i) the image on the obverse of the 
                        bullion coin corresponding to the $1 
                        coin relating to such President shall 
                        be an image emblematic of the concept 
                        of ``Liberty''--
                                  (I) as represented on a 
                                United States coin issued 
                                during the period of service of 
                                such President; or
                                  (II) as represented, in the 
                                case of President Chester Alan 
                                Arthur, by a design 
                                incorporating the name and 
                                likeness of Alice Paul, a 
                                leading strategist in the 
                                suffrage movement, who was 
                                instrumental in gaining women 
                                the right to vote upon the 
                                adoption of the 19th amendment 
                                and thus participate in the 
                                election of future Presidents, 
                                and who was born on January 11, 
                                1885, during the term of 
                                President Arthur; and
                          (ii) the reverse of such bullion coin 
                        shall be of a design representative of 
                        themes of such President, except that 
                        in the case of the bullion coin 
                        referred to in clause (i)(II) the 
                        reverse of such coin shall be 
                        representative of the suffrage 
                        movement.
                  (E) Design and coin for each spouse.--A 
                separate coin shall be designed and issued 
                under this section for each person who was the 
                spouse of a President during any portion of a 
                term of office of such President.
                  (F) Inscriptions.--Each bullion coin issued 
                under this subsection shall bear the 
                inscription of the year of minting or issuance 
                of the coin and such other inscriptions as the 
                Secretary may determine to be appropriate.
          (4) Sale of bullion coins.--Each bullion coin issued 
        under this subsection shall be sold for an amount the 
        Secretary of the Treasury determines to be appropriate 
        that is equal to or greater than the sum of--
                  (A) the face value of the coins; and
                  (B) the cost of designing and issuing the 
                coins (including labor, materials, dies, use of 
                machinery, overhead expenses, marketing, and 
                shipping).
          (5) Issuance of coins commemorating first spouses.--
                  (A) In general.--The bullion coins issued 
                under this subsection with respect to any 
                spouse of a President shall be issued on the 
                same schedule as the $1 coin issued under 
                subsection (n) with respect to such President.
                  (B) Maximum number of bullion coins for each 
                design.--The Secretary shall--
                          (i) prescribe, on the basis of such 
                        factors as the Secretary determines to 
                        be appropriate, the maximum number of 
                        bullion coins that shall be issued with 
                        each of the designs selected under this 
                        subsection; and
                          (ii) announce, before the issuance of 
                        the bullion coins of each such design, 
                        the maximum number of bullions coins of 
                        that design that will be issued.
                  (C) Termination of program.--No bullion coin 
                may be issued under this subsection after the 
                design on the $1 coin reverts, in accordance 
                with subsection (n)(7), to the design on $1 
                coins being issued immediately before the 
                issuance of coins under subsection (n).
          (6) Quality of coins.--The bullion coins shall be 
        issued in both proof and uncirculated qualities.
          (7) Source of gold bullion.--The Secretary shall 
        acquire gold for the coins issued under this subsection 
        by purchase of gold mined from natural deposits in the 
        United States, or in a territory or possession of the 
        United States, within 1 year after the month in which 
        the ore from which it is derived was mined. The 
        Secretary shall pay not more than the average world 
        price for the gold.
          (8) Bronze medals.--The Secretary may strike and sell 
        bronze medals that bear the likeness of the bullion 
        coins authorized under this subsection, at a price, 
        size, and weight, and with such inscriptions, as the 
        Secretary determines to be appropriate.

                                  
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