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108th Congress                                            Rept. 108-473
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 2

======================================================================



 
                  JOHN MARSHALL COMMEMORATIVE COIN ACT

                                _______
                                

  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. 2768]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Ways and Means, to whom was referred the 
bill (H.R. 2768) to require the Secretary of the Treasury to 
mint coins in commemoration of Chief Justice John Marshall, 
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........5

    The amendment (stated in terms of the page and line numbers 
of the introduced bill) is as follows:
    Page 6, after line 17 (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 Code (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. 2768, as amended, contains provisions that 
direct the U.S. Mint to produce a coin to commemorate the 250th 
anniversary of the birth of Chief Justice John Marshall and 
permit a surcharge to be collected on such coin. 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. 2768 
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. 2768, as amended by the Committee, provides for the 
issuance of a coin to commemorate Chief Justice John Marshall. 
The bill provides that the Secretary shall mint and issue a 
one-dollar coin that 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 ten dollars per coin. Under 
the bill, all surcharges received by the Secretary from the 
sale of coins issued under the bill shall be paid to the 
Supreme Court Historical Society for the purposes of supporting 
historical research and educational programs about the Supreme 
Court and the Constitution of the United States and related 
topics; supporting fellowship programs, internships, and 
docents at the Supreme Court; and collecting and preserving 
antiques, artifacts, and other historical items related to the 
Supreme Court and the Constitution of the United States and 
related topics.
    The bill, as amended, further provides that no surcharge 
may be included with respect to the issuance of coins under 
H.R. 2768, the ``John Marshall Commemorative Coin Act,'' 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, 2005, and ending on December 31, 2005. Thus, if in 
2005, prior to the issuance of the John Marshall commemorative 
coin, commemorative coins have been issued under two other 
commemorative coin programs for which a surcharge was included, 
then, under the bill as amended, the John Marshall 
commemorative coin 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. 2768.

                       MOTION TO REPORT THE BILL

    The bill, H.R. 2768, 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. 2768 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. 2768, the John 
Marshall Commemorative Coin Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                       Douglas Holtz-Eakin,
                                                          Director.
    Enclosure.

H.R. 2768--John Marshall Commemorative Coin Act

    H.R. 2768 would authorize the U.S. Mint to produce a $1 
silver coin in calendar year 2005 to commemorate the 250th 
anniversary of the birth of Chief Justice John Marshall. The 
legislation would specify a surcharge of $10 on the sale of 
each coin and would designate the Supreme Court Historical 
Society, a nonprofit entity, as the recipient of the income 
from the surcharge. CBO estimates that enacting H.R. 2768 would 
have no significant net impact on direct spending over the 
2004-2009 period.
    Sales from the coins that would be authorized by H.R. 2768 
could raise as much as $4 million in surcharges if the Mint 
sells the maximum number of authorized coins. Recent 
commemorative coin sales, however, suggest that receipts would 
be about $1.5 million. Under current law, the Mint must ensure 
that it does not lose money producing commemorative coins 
before transferring any surcharges to a recipient organization. 
CBO expects that those receipts from such surcharges would be 
transferred to the historical society in fiscal year 2006.
    H.R. 2768 could limit the collection of surcharges from 
more than two commemorative coins in any calendar year. 
According to the Mint there are no commemorative coins 
scheduled to be issued in 2005, so we expect this provision 
would not reduce the collection or spending of surcharges for 
the John Marshall Commemorative Coin.
    H.R. 2768 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act, and 
would not affect the budgets of state, local, or tribal 
governments.
    On March 19, 2004, CBO transmitted a cost estimate for H.R. 
2768, as ordered reported by the House Committee on Financial 
Services on March 17, 2004. On November 24, 2003, CBO 
transmitted a cost estimate for S. 1531, the Chief Justice John 
Marshall Commemorative Coin Act, as passed by the Senate on 
November 21, 2003. The three pieces of legislation are similar 
and our cost estimates are the same.
    The CBO staff contact for this estimate is Matthew 
Pickford. This estimate was 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 fuel 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 a commemorative coin 
emblematic of Chief Justice John Marshall and transfer the 
proceeds from the sale of those coins to the Supreme Court 
Historical Society.

                 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.