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108th Congress                                            Rept. 108-472
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 2

======================================================================
 
       JAMESTOWN 400TH ANNIVERSARY COMMEMORATIVE COIN ACT OF 2003

                                _______
                                

  July 6, 2004.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. Thomas, from the Committee on Ways and Means, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 1914]

      [Including cost estimate of the Congressional Budget Office)

    The Committee on Ways and Means, to whom was referred the 
bill (H.R. 1914) to provide for the issuance of a coin to 
commemorate the 400th anniversary of the Jamestown settlement, 
having considered the same, report favorably thereon with an 
amendment and recommend that the bill, as amended, do pass.

                                CONTENTS

                                                                   Page
 I. Summary and Background............................................2
II. Explanation of the Bill...........................................2
III.Votes of the Committee............................................3

IV. Budget Effects of the Bill........................................4
 V. Other Matters To Be Discussed Under the Rules of the House........6

    The amendment (stated in terms of the page and line numbers 
of the introduced bill) is as follows:
    Page 8, after line 16 (at the end of section 7), add the 
following new subsection:
    (d) Limitation.--Notwithstanding subsection (a), no 
surcharge may be included with respect to the issuance under 
this Act of any coin during a calendar year if, as of the time 
of such issuance, the issuance of such coin would result in the 
number of commemorative coin programs issued during such year 
to exceed the annual 2 commemorative coin program issuance 
limitation under section 5112(m)(1) of title 31, United States 
Codes (as in effect on the date of the enactment of this Act). 
The Secretary of the Treasury may issue guidance to carry out 
this subsection.

                       I. SUMMARY AND BACKGROUND

A. Purpose and summary

    The bill, H.R. 1914, as amended, contains provisions that 
direct the U.S. Mint to produce coins to commemorate the 400th 
anniversary of the founding of Virginia at Jamestown and permit 
a surcharge to be collected on such coins. However, such 
surcharges may be collected only with respect to two 
commemorative coin programs per year.

B. Background and need for legislation

    The provisions approved by the Committee reflect the need 
to enforce the limitation established in the Commemorative Coin 
Reform Act of 1996 that commemorative coins from no more than 
two commemorative coin programs carrying surcharges be issued 
per year.

C. Legislative history

    The House Committee on Ways and Means marked up H.R. 1914 
on June 23, 2004, and ordered the bill, as amended, favorably 
reported by voice vote.

                      II. EXPLANATION OF THE BILL

Present law

    The Secretary of the Treasury is authorized to issue 
commemorative coins under the United States Commemorative Coin 
Act of 1996,\1\ as amended, and specific statutes authorizing 
the issuance of coins under a commemorative coin program. A 
statute authorizing a commemorative coin program generally 
includes a provision establishing authority for the Secretary 
to impose a surcharge with respect to that program. Proceeds of 
the surcharge are to be used for the purposes authorized by the 
commemorative coin program authorizing legislation. Under 
present law, effective January 1, 1999, the Secretary may mint 
and issue commemorative coins during any calendar year with 
respect to not more than two commemorative coin programs.\2\ 
This limitation applies to coin programs without regard to 
whether a surcharge is imposed.
---------------------------------------------------------------------------
    \1\ Pub. L. No. 104-329.
    \2\ 31 U.S.C. 5112.
---------------------------------------------------------------------------

Reasons for change

    The Committee understands that, since 1982, 42 different 
commemorative coins have been produced and they have generated 
approximately $430 million in surcharges. Changes enacted under 
the Commemorative Coin Reform Act of 1996 provide that the 
Federal Government may retain surcharges if the recipient 
organization does not meet certain requirements, e.g., matching 
funds. The surcharges raise revenue for the Federal Government 
that is used to fund various programs and organizations as 
provided in the authorizing legislation. The Commemorative Coin 
Reform Act of 1996 also provided that there would be a limit of 
no more than two commemorative coins issued annually. Because 
commemorative coins are used to raise revenue for the Federal 
Government, the Committee believes it is appropriate to enforce 
the limitation of no more than two commemorative coin programs 
per year by providing that no surcharge may be collected on any 
commemorative coin issued as part of more than two 
commemorative coin programs in any calendar year.

Explanation of provision

    H.R. 1914, as amended by the Committee, provides for the 
issuance of a coin to commemorate the 400th anniversary of the 
Jamestown settlement. The bill provides that the Secretary 
shall mint and issue a one-dollar coin and a five-dollar coin, 
each of which shall be legal tender and considered to be a 
numismatic item. The bill provides that all sales of the coins 
shall include a surcharge of thirty-five dollars per coin for a 
five-dollar coin, and ten dollars per coin for a one-dollar 
coin. Under the bill, fifty percent of the surcharges received 
by the secretary from the sale of coins issued under the bill 
shall be paid to the Jamestown-Yorktown Foundation of the 
Commonwealth of Virginia to support programs to promote the 
understanding of the legacies of Jamestown, and fifty percent 
shall be used to sustain the ongoing mission of preserving 
Jamestown; to enhance national and international educational 
programs relating to Jamestown; to improve infrastructure and 
archaeological research activities relating to Jamestown; and 
to conduct other programs to support the commemoration of the 
400th anniversary of the settlement of Jamestown.
    The bill, as amended, further provides that no surcharge 
may be included with respect to the issuance of coins under 
H.R. 1914, the ``Jamestown 400th Anniversary Commemorative Coin 
Act of 2003,'' during a calendar year if, as of the time of 
such issuance, the issuance of such coin would result in the 
number of commemorative coin programs issued during such year 
to exceed the annual limitation of two such commemorative coin 
programs under section 5112(m)(1) of Title 31 of the United 
States Code. The bill provides that the Secretary of the 
Treasury may issue guidance to carry out the provision. The 
Secretary may issue coins minted under the bill only during the 
period beginning on January 1, 2007, and ending on December 31, 
2007. Thus, if in 2007, prior to the issuance of either of the 
Jamestown coins, commemorative coins have been issued under two 
or more other commemorative coin programs for which a surcharge 
was included, then, under the bill as amended, the Jamestown 
coins issued in 2007 would have to be issued without a 
surcharge.

Effective date

    The provision is effective on the date of enactment.

                      III. VOTES OF THE COMMITTEE

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the following statements are made 
concerning the votes of the Committee on Ways and Means in its 
consideration of the bill, H.R. 1914.

Motion to report the bill

    The bill, H.R. 1914, as amended was ordered favorably 
reported by voice vote (with a quorum being present).

                     IV. BUDGET EFFECTS OF THE BILL

A. Committee estimate of budgetary effects

    In compliance with clause 3(d)(2) of the rule XIII of the 
Rules of the House of Representatives, the following statement 
is made concerning the effects on the budget of the revenue 
provisions of the bill, H.R. 1914 as reported.
    The Committee agrees with the estimate prepared by CBO 
which is included below.

B. Statement regarding new budget authority and tax expenditures budget 
        authority

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee states that the 
bill involves no new or increased budget authority.

C. Cost estimate prepared by the congressional budget office

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, requiring a cost estimate 
prepared by the CBO, the following statement by CBO is 
provided.

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, July 1, 2004.
Hon. William ``Bill'' M. Thomas,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1914, the 
Jamestown 400th Anniversary Commemorative Coin Act of 2003.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                      Elizabeth M. Robinson
                               (For Douglas Holtz-Eakin, Director).
    Enclosure.

H.R. 1914--Jamestown 400th Anniversary Commemorative Coin Act of 2003

    Summary: H.R. 1914 would direct the U.S. Mint to produce a 
$5 gold coin and a $1 silver coin in calendar year 2007 to 
commemorate the 400th anniversary of the founding of Jamestown, 
Virginia. The bill would specify a surcharge on the sales price 
of $35 for the gold coin and $10 for the silver coin and would 
designate the Jamestown-Yorktown Foundation (an educational 
institution of the Commonwealth of Virginia), the National Park 
Service, and the Association for the Preservation of Virginia 
Antiquities (a private nonprofit association), as recipients of 
the income from those surcharges.
    CBO estimates that enacting H.R. 1914 would have no 
significant net impact on direct spending over the 2004-2009 
period. H.R. 1914 contains no intergovernmental or private-
sector mandates as defined in the Unfunded Mandates Reform Act 
(UMRA), and would likely benefit the Commonwealth of Virginia.
    Estimated cost to the Federal Government: H.R. 1914 could 
raise as much as $8.5 million in surcharges if the Mint sells 
the maximum number of authorized coins. Recent commemorative 
coin sales, however, suggest that receipts would be about $3 
million. Under current law, the Mint must ensure that it will 
not lose money on a commemorative coin program before 
transferring any surcharges to a designated recipient 
organization. CBO expects that the Mint would collect most of 
those surcharges in fiscal year 2007 and would transfer 
collections to the designated recipients in fiscal year 2008.
    H.R. 1914 could limit the collection of surcharges from 
more than two commemorative coins in any calendar year. 
According to the Mint there are currently no commemorative 
coins scheduled to be issued in 2007, so we expect this 
provision would not reduce the collection or spending of 
surcharges for the Jamestown 400th Anniversary Commemorative 
Coins.
    In addition, CBO expects that the Mint would use gold 
obtained from the reserves held at the Treasury to produce the 
gold coin. Because the budget treats the sale of gold as a 
means of financing governmental operations--that is, the 
Treasury's receipts from such sales do not affect the size of 
the deficit--CBO has not included such receipts in this 
estimate. CBO estimates that H.R. 1914 would provide the 
federal government with about $3.5 million in additional cash 
(in exchange for gold) for financing the federal deficit in 
fiscal year 2007.
    Intergovernment and private-sector impact: H.R. 1914 
contains no intergovernmental or private-sector mandates as 
defined in UMRA, and would likely benefit the Commonwealth of 
Virginia.
    Previous CBO estimates: On June 25, 2004, CBO transmitted a 
cost estimate for S. 976, the Jamestown 400th Anniversary 
Commemorative Coin Act of 2003, as ordered reported by the 
Senate Committee on Banking, Housing, and Urban Affairs. On 
March 22, 2004, CBO transmitted a cost estimate for H.R. 1914, 
as ordered reported by the House Committee on Financial 
Services on March 17, 2004. The three pieces of legislation are 
similar and our cost estimates are the same.
    Estimate prepared by: Federal Costs: Matthew Pickford. 
Impact on State, Local, and Tribal Governments: Sarah Puro. 
Impact on the Private Sector: Paige Piper/Bach.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

D. Macroeconomic impact analysis

    In compliance with clause 3(h)(2) of rule XIII of the Rules 
of the House of Representatives, the following statement is 
made by the Joint Committee on Taxation with respect to the 
provisions of the bill amending the Internal Revenue Code of 
1986: the effects of the bill on economic activity are so small 
as to be incalculable within the context of a model of the 
aggregate economy.

     V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE

A. Committee oversight findings and recommendations

    With respect to clause 3(c)(1) of rule XIII of the Rules of 
the House of Representatives (relating to oversight findings), 
the Committee advises that it was a result of the Committee's 
oversight review concerning Federal commemorative coin programs 
that the Committee concluded that it is appropriate and timely 
to enact the revenue provision included in the bill as 
reported.

B. Statement of general performance goals and objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the Committee establishes the 
following performance related goals and objectives for this 
legislation:
    The Secretary of the Treasury shall use the authority 
granted by this legislation to mint two commemorative coins 
emblematic of the settlement of Jamestown and transfer the 
proceeds from the sale of those coins to the Jamestown-Yorktown 
Foundation of the Commonwealth of Virginia.

C. Constitutional authority statement

    With respect to clause 3(d)(1) of the rule XIII of the 
Rules of the House of Representatives (relating to 
Constitutional Authority), the Committee states that the 
Committee's action in reporting this bill is derived from 
Article I of the Constitution, Section 8 (``The Congress shall 
have Power To lay and collect Taxes, Duties, Imposts and 
Excises. . .'').

D. Information relating to unfunded mandates

    This information is provided in accordance with section 423 
of the Unfunded Mandates Act of 1995 (P.L. 104-4).
    The Committee has determined that the revenue provisions of 
the bill do not impose a Federal intergovernmental mandate on 
State, local, or tribal governments.

E. Applicability of House rule XXI 5(b)

    Rule XXI 5(b) of the Rules of the House of Representatives 
provides, in part, that ``A bill or joint resolution, 
amendment, or conference report carrying a Federal income tax 
rate increase may not be considered as passed or agreed to 
unless so determined by a vote of not less than three-fifths of 
the Members voting, a quorum being present.'' The Committee has 
carefully reviewed the provisions of the bill, and states that 
the provisions of the bill do not involve any Federal income 
tax rate increases within the meaning of the rule.

F. Tax complexity analysis

    Section 4022(b) of the Internal Revenue Service Reform and 
Restructuring Act of 1998 (the ``IRS Reform Act'') requires the 
Joint Committee on Taxation (in consultation with the Internal 
Revenue Service and the Department of the Treasury) to provide 
a tax complexity analysis. The complexity analysis is required 
for all legislation reported by the Senate Committee on 
Finance, the House Committee on Ways and Means, or any 
committee of conference if the legislation includes a provision 
that directly or indirectly amends the Internal Revenue Code 
(the ``Code'') and has widespread applicability to individuals 
or small businesses.
    The staff of the Joint Committee on Taxation has determined 
that a complexity analysis is not required under section 
4022(b) of the IRS Reform Act because the bill contains no 
provisions that directly or indirectly amend the Internal 
Revenue Code.