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                                 SENATE

 1st Session                                                    105-130
_______________________________________________________________________


 
                50 STATES COMMEMORATIVE COIN PROGRAM ACT

                                _______
                                

                October 31, 1997.--Ordered to be printed

_______________________________________________________________________


Mr. D'Amato, from the Committee on Banking, Housing, and Urban Affairs, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 1228]

    The Committee on Banking, Housing, and Urban Affairs to 
which was referred the bill (S. 1228) to provide for a 10-year 
circulating commemorative coin program to commemorate each of 
the 50 States, and for other purposes, having considered the 
same, reports favorably thereon with an amendment and 
recommends that the bill as amended do pass.

                              Introduction

    On October 23, 1997, the Senate Committee on Banking, 
Housing, and Urban Affairs met in legislative session and 
marked up and ordered to be reported S. 1228, a bill to provide 
for a 10-year circulating commemorative coin program to 
commemorate each of the 50 States, and for other purposes, with 
two amendments. The Committee's action was taken by a voice 
vote.

                       History of the Legislation

    The 50 States Commemorative Coin Program Act, S. 1228, was 
introduced on September 26, 1997 by Senators Chafee and 
D'Amato. Senators Kerry, Johnson, Santorum, Allard, Roth, 
Moynihan, Frist, Moseley-Braun, Cochran, Faircloth, Brownback, 
Craig, Kempthorne, Bennett, Inouye, Domenici, Kennedy, Dodd, 
Kerrey, Grams, Hutchinson, Snowe, Helms, Rockefeller and 
Grassley were added as additional cosponsors. The legislation 
introduced was identical to H.R. 2414, the ``50 States 
Commemorative Coin Program Act.'' S. 1228 has two purposes: 
first, to place into circulation quarter dollars with the 
reverse side image of the eagle replaced by a specific design 
for each of the 50 States during a 10-year period; and second, 
to strike and sell silver proof versions of these quarter 
dollars.
    There were no Committee hearings held on S. 1228. At the 
Committee mark up on October 23, the Committee adopted two 
amendments to S. 1228 that provide for the ``First Flight 
Commemorative Coin Act of 1997'' and the ``United States $1 
Coin Act of 1997.''

                          Purpose and Summary

    The bill reported by the Committee would change the reverse 
side of our circulating quarter dollar coinage for a period of 
10 years. Beginning in the year 1999, each of the 50 States 
would be represented on the circulating quarter dollar with one 
specific design in the order in which the States ratified the 
Constitution of the United States or joined the Union. Five 
different State quarters would be circulated each year from 
1999 to 2008. Each State quarter would circulate for 
approximately 10 weeks.
    The designs for the States would be chosen by the Secretary 
of the Treasury after consultation with the Governors of all 50 
States, or such other State officials designated by the 
Governors; the Commission of Fine Arts; and the Citizens 
Commemorative Coin Advisory Committee.
    The Committee recognizes that the primary purpose of this 
program is to commemorate the unique contribution each of the 
50 States has made to our nation's history. The Committee also 
realizes that this program could produce earnings of 
$110,000,000 from the sale of silver proof coins, and in 
addition would produce indirect earnings of an estimated 
$2,600,000,000 to $5,100,000,000 to the United States 
Treasury.\1\ This estimation of indirect earnings represents 
money that will replace borrowing from the public to fund the 
national debt.
---------------------------------------------------------------------------
    \1\ Treasury Study, ``50 States Commemorative Coin Program Study,'' 
May 30, 1997.
---------------------------------------------------------------------------
    The accounting firm of Coopers and Lybrand, L.L.P. and its 
subcontractor, Opinion Research Corporation was commissioned by 
the Department of Treasury to study the 50 States Commemorative 
Coin Program. The results of this study were reported to the 
House and Senate Banking Committees on June 9, 1997 as mandated 
by the United States Commemorative Coin Act of 1996, PL 104-
329.
    The two amendments adopted at the Committee mark up of S. 
1228 authorize a redesign of the Susan B. Anthony circulating 
dollar coin and a commemorative coin program for the year 2003.
    The ``United States $1 Coin Act of 1997'' authorizes the 
Secretary of the Treasury to change the dollar coin to a golden 
color and give the coin a distinctive edge. It also authorizes 
the Secretary to select appropriate designs for the obverse and 
reverse side of the dollar coin. The current design of the $1 
coin has been subject to criticism because it has the same 
color and reeded edge as a quarter dollar, making it difficult 
for consumers to differentiate between a Susan B. Anthony $1 
coin and a quarter. The amendment provides for the Secretary to 
develop a marketing program to introduce the $1 coin and to 
follow up with a study on the progress of the marketing 
program. This amendment would not remove the dollar note from 
circulation.
    The ``First Flight Commemorative Coin Act of 1997'' 
amendment provides for a coin program in the year 2003 
commemorating the 100th anniversary of the Wright Brothers' 
first flight in Kitty Hawk, North Carolina. The program 
collection would consist of three distinct designs for a $10 
dollar gold coin, a $1 silver coin and a half dollar clad coin. 
The amendment language is in keeping with the commemorative 
coin program reforms enacted in 1996.

   Section-By-Section Analysis of the ``50 States Commemorative Coin 
                             Program Act''

                         Section 1. Short title

    Section 1 provides that the bill may be cited as the ``50 
States Commemorative Coin Program Act.''

                          Section 2. Findings

    Section two sets out the findings of the Act. The 
``findings'' state the following: that it is timely to honor 
and to promote the diffusion of knowledge of each of the 50 
states of the Union, their unique history, geography, and 
contribution to our national heritage, that the American 
circulating coinage is overdue for modernization, that the 
program would earn an estimated $110,000,000 from the sale of 
silver proof coins and an estimated $2.6 to $5.1 billion in 
seigniorage over 10-year life of program, that the seigniorage 
represents money that will replace borrowing to fund the 
national debt, and that the program will encourage collecting 
memorable tokens of the fifty states for no cost beyond the 
face value of the coins.

 Section 3. Issuance of Redesigned Quarter Dollars Over 10-Year Period 
                  Commemorating Each of the 50 States

    Section 3 provides for the redesign and issuance of the 
circulating coin program. The program would begin in the year 
1999 and last 10 years. The reverse side of the quarter dollar 
will have designs emblematic of the 50 States. To ensure a 
smooth transition into the program, the Secretary of the 
Treasury (``Secretary'') may continue to mint and issue quarter 
dollars in 1999 which bear the design in effect before the 
redesign and the inscription of the year ``1998.'' Each of the 
50 States will have only one design.
    The redesigned quarters shall be issued in the order in 
which the States ratified the Constitution of the United States 
or were admitted into the Union. For each year of the program, 
the Secretary shall prescribe, based on appropriate factors, 
the number of quarter dollars of each design to be issued.
    The Secretary shall select all designs after consultation 
with the Governor of each State, or other State officials or 
group designated by the State; and the Commission of Fine Arts. 
The Citizens Commemorative Coin Advisory Committee shall review 
all designs. The Secretary may develop a selection and approval 
process which may include participation by State officials, 
artists from the States, engravers from the United States Mint, 
and members of the general public. The Secretary shall not 
select any frivolous or inappropriate design. No head and 
shoulders portrait or bust of any person, living or dead, and 
no portrait of a living person shall be considered for any 
design. All coins of this program are to be considered 
numismatic items.
    The Secretary may determine how many coins of each design 
are to be minted and issued in proof and uncirculated 
qualities. The silver coins shall contain 90 percent silver and 
10 percent copper. Silver for these coins shall be obtained 
from available sources, including stockpiles established under 
the Strategic and Critical Materials Stock Piling Act.
    If any additional state is admitted before the 10-year 
program has ended, the Secretary may issue quarter dollar coins 
in keeping with the established selection process. The 
additional design may be issued during any year of the program.

                 SECTION 4. United States Dollar Coins

    Section 4 provides for a short title of this section may be 
cited as the ``United States $1 Dollar Coin Act of 1997.''
    Section 4 provides for amending Section 5112(a)(1) of title 
31, United States Code, by striking ``and weighs 8.1 grams''. 
Section 5112(b) of title 31, United States Code is also amended 
in the first sentence by striking ``dollar,'' and by inserting 
that the dollar shall be golden in color, have a distinctive 
edge, have tactile and visual features that make the 
denomination of the coin readily discernible, be minted and 
fabricated in the United States, and have similar metallic, 
anti-counterfeiting properties as United States clad coinage in 
circulation at the time of enactment of this Act.
    Section 5112(d)(1) of title 31, United States Code is 
amended to include that the Secretary of the Treasury 
(``Secretary'') shall select designs for the obverse and 
reverse sides of the dollar coin in consultation with Congress.
    Upon depletion of the Government's supply of $1 coins 
bearing the likeness of Susan B. Anthony, the Secretary shall 
place into circulation $1 coins that comply with this Act. If 
the supply of Susan B. Anthony $1 coins is depleted before the 
production of the redesigned $1 coins, then the Secretary may 
continue to mint and issue Susan B. Anthony $1 coins until such 
time production begins. The Secretary may include the 
redesigned $1 coins in any numismatic set produced by the 
United States Mint before they are placed into circulation.
    Before circulating the redesigned $1 coin, the Secretary 
shall adopt a program to promote their use to commercial 
enterprises, mass transit authorities, and Federal, State, and 
local governments. The Secretary shall conduct a study on the 
progress of that marketing program. The Secretary shall submit 
to Congress no later than March 31, 2001, the results of the 
study of the marketing program.

              SECTION 5. First Flight Commemorative Coins

    Section 5 authorizes the Secretary of the Treasury 
(``Secretary'') to mint and issue $10 dollar gold coins, $1 
dollar silver coins, and half dollar clad coins with designs 
emblematic of the Wright Brothers' first flight in Kitty Hawk, 
North Carolina, on December 17, 1903. The coins shall be legal 
tender.
    The Secretary shall obtain gold and silver for minting such 
coins pursuant to the authority of the Secretary under other 
provisions of law, including authority to use the silver 
stockpiles established under the Strategic and Critical 
Materials Stockpiling Act.
    Each coin shall bear a designation of the value of the coin 
and inscription of the year ``2003.'' The Secretary shall 
select the designs after consultation with the Board of 
Directors of the First Flight Foundation and the Commission of 
Fine Arts. The designs shall be reviewed by the Citizens 
Commemorative Coin Advisory Committee.
    The Secretary may issue these coins only during the period 
beginning August 1, 2003 and ending on July 31, 2004. The price 
of the coins shall be equal to the sum of the face value of the 
coins; the surcharge placed on the coins; and the cost of 
designing and issuing the coins. Bulk sales of the coins shall 
be made at a reasonable discount.
    The Secretary shall accept prepaid orders prior to 
issuance. Sale prices with respect to prepaid orders shall be 
at a reasonable discount. All sales shall include a surcharge 
of $35 for each gold coin; $10 for each silver coin; and $1 for 
each clad coin. The Secretary shall ensure that a plan is 
established for marketing these coins and shall ensure that 
adequate funds are made available to cover the cost of carrying 
out that marketing plan.
    No provision of law governing procurement or public 
contracts shall be applicable to the procurement of goods and 
services necessary for minting and issuing such coins. Any 
person entering into a contract must comply with any law 
relating to equal employment opportunity.
    All surcharges received by the Secretary shall be promptly 
paid to the First Flight Foundation for purposes of repairing, 
refurbishing, and maintaining the Wright Brothers Monument on 
the Outer Banks of North Carolina; and for expanding (or, if 
necessary, replacing) and maintaining the visitor center and 
other facilities at the Wright Brothers National Memorial Park 
on the Outer Banks of North Carolina, including providing 
educational programs and exhibits for visitors.
    The Comptroller General of the United States shall have the 
right to examine the books, records, documents, and other data 
of the First Flight Foundation. The Secretary shall take such 
action necessary to ensure that minting and issuing these coins 
will not result in any net cost to the United States 
Government.

                      Regulatory Impact Statement

    Pursuant to rule XXVI, paragraph 11(b), of the Standing 
Rules of the Senate, the Committee has evaluated the regulatory 
impact of the bill and concludes that it will not increase the 
net regulatory burden imposed on the Government.

               Congressional Budget Office Cost Estimate

    Senate Rule XXVI, section 11(b) of the Standing Rules of 
the Senate, and section 403 of the Congressional Budget 
Impoundment and Control Act, require that each committee report 
on a bill contain a statement estimating the cost of the 
proposed legislation, which was prepared by the Congressional 
Budget Office. This statement has been requested from the 
Congressional Budget Office, but it was not available at the 
date of filing this report. When the information is made 
available to the committee, it will be placed in the 
Congressional Record.

                 Changes In Existing Law (Cordon Rule)

    In the opinion of the Committee, it is necessary to 
dispense with the requirements of paragraph 12 of rule XXVI of 
the Standing Rules of the Senate in order to expedite the 
business of the Senate.

                 Treasury Department Letter of Support

                                Department of the Treasury,
                                  Washington, DC, October 31, 1997.
Hon. Alfonse M. D'Amato,
Chairman, Committee on Banking, Housing, and Urban Affairs,
Washington, DC.
    Dear Al: I have reviewed the proposal for a fifty state 
circulating commemorative quarter program and the study that 
the Treasury Department commissioned for Coopers and Lybrand. 
The study makes the following important determinations: (1) The 
program has clear economic advantages to the government, with 
between $2.6 and $5.1 billion over ten years of projected 
savings; (2) there are no logistical or manufacturing capacity 
problems that would preclude moving forward with the program as 
outlined in the legislation passed last year.
    The study, through extensive polling and market research, 
concluded that there was a substantial degree of interest and 
public acceptance for the program. Having said this, I believe 
that the natural reflection of the will of the people lies with 
their representatives in the Congress. Therefore, if Congress 
directs that we should proceed with the 50 State Commemorative 
Quarter Program, the Department of the Treasury stands ready to 
implement it.
    The dignified design of our coinage and currency is an 
important consideration, and every citizen should be able to be 
proud that our money includes elements symbolic of the basic 
principles of the nation. The legislation, therefore, should 
provide for the full consideration of these and related issues 
by setting up for design review by the Citizens Commemorative 
Coin Advisory Committee and the Fine Arts Commission, to review 
proposed designs, with final review by the Secretary of the 
Treasury. This process will insure that no frivolous or 
inappropriate designs are adopted.
    I look forward to working with you on this legislation and 
on future matters.
            Sincerely,
                                                   Robert E. Rubin.

                            ADDITIONAL VIEWS

    We are very pleased that the one dollar coin bill is a part 
of this legislation. Replacing the Susan B. Anthony coin with a 
coin that is golden in color and smooth edged will allow it to 
be more easily differentiated from the quarter. However, it is 
only appropriate that the design of this coin depict a woman or 
women of historical significance. To that end, we believe that 
the new coin should depict the images of Sojourner Truth, 
Elizabeth Cady Stanton, Lucretia Mott and Susan B. Anthony. 
These four women were staunch abolitionists, and fought for 
equal rights for women. It is largely through their efforts 
that women have opportunities for higher education, the right 
to control their own property and children, the right to hold 
public office and the right to vote.
    Three of these women (Elizabeth Cady Stanton, Lucretia 
Mott, and Susan B. Anthony) have been honored with a statue in 
the Capitol. This statue, however, was carved in 1921, and 
failed to include Sojourner Truth, the great abolitionist, 
feminist and preacher. In order to recognize the contributions 
of all women it would be most appropriate that Sojourner Truth 
be recognized along with her fellow women's rights advocates 
for her efforts to achieve equality for all Americans, and 
specifically for her work on behalf of abolition and women's 
rights.
    Sojourner Truth was born into slavery in 1797 in New York 
State. Freed in 1827 under the New York State Emancipation Act, 
she spent the next 53 years preaching and lecturing about God, 
abolition and women's rights.
    Sojourner Truth was an advocate for African Americans. She 
spoke out against slavery at every opportunity and traveled the 
country for many years preaching abolition. In 1864 she visited 
with President Lincoln to thank him for the Emancipation 
Proclamation and for being the ''instrument'' by which slavery 
was ended. She mentioned to the President that she had not 
heard of him before he ran for President, and he replied, ``I 
had heard of you many times before that.'' She was a powerful 
voice for abolition and also for economic and educational 
opportunities for freedmen and women.
    Sojourner Truth was also an advocate of women's rights. She 
consistently supported equality among all people. In 1851, 
Sojourner Truth spoke at a Women's Rights Convention in Akron, 
Ohio. Despite widely voiced concerns by many of the white women 
in attendance that they did not want an African American 
speaking, potentially confusing and tarnishing their cause, 
Sojourner Truth rose to respond to male preachers who were 
denouncing women's rights based on the inherent frailty of 
women:

    I want to say a few words about this matter. I am a woman's 
rights. I have as much muscle as any man and can do as much 
work as any man. I have plowed and reaped and husked and 
chopped and mowed, and can any man do more than that? I have 
heard much about the sexes being equal; I can carry as much as 
any man, and can eat as much, too, if I can get it. I am as 
strong as any man that is now * * * Why, children, if you have 
woman's rights, give it to her and you will feel better. You 
will have your own rights, and they won't be so much trouble * 
* *

    She inspired the Convention and women's rights advocates as 
she did all of her audiences.
    Sojourner Truth dedicated her life to achieving equality. 
She considered herself to be on a sojourn to tell the truth, a 
sojourn directed by God. It would be a fitting tribute to 
Sojourner Truth and to the truth which she preached, to honor 
her by depicting her image on the dollar coin, along with her 
fellow women's rights crusaders, Elizabeth Cady Stanton, 
Lucretia Mott, and Susan B. Anthony.

                                   Carol Moseley-Braun.
                                   Barbara Boxer.
                                   Robert F. Bennett.
                                   Jack Reed.
                                   Tim Johnson.