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[Senate Report 106-355]
[From the U.S. Government Publishing Office]

106th Congress 
 2d Session                      SENATE                          Report
                                                                106-355
_______________________________________________________________________

                                     

                                                       Calendar No. 706

 
                          2002 WINTER OLYMPIC

                        COMMEMORATIVE COIN ACT

                               __________

                              R E P O R T

                                 OF THE

                     COMMITTEE ON BANKING, HOUSING,

                           AND URBAN AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                                S. 2266

                                     

    July 24 (legislative day, July 21), 2000.--Ordered to be printed
            COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS

                      PHIL GRAMM, Texas, Chairman

RICHARD C. SHELBY, Alabama           PAUL S. SARBANES, Maryland
CONNIE MACK, Florida                 CHRISTOPHER J. DODD, Connecticut
ROBERT F. BENNETT, Utah              JOHN F. KERRY, Massachusetts
ROD GRAMS, Minnesota                 RICHARD H. BRYAN, Nevada
WAYNE ALLARD, Colorado               TIM JOHNSON, South Dakota
MICHAEL B. ENZI, Wyoming             JACK REED, Rhode Island
CHUCK HAGEL, Nebraska                CHARLES E. SCHUMER, New York
RICK SANTORUM, Pennsylvania          EVAN BAYH, Indiana
JIM BUNNING, Kentucky                JOHN EDWARDS, North Carolina
MIKE CRAPO, Idaho

                   Wayne A. Abernathy, Staff Director
     Steven B. Harris, Democratic Staff Director and Chief Counsel
                  Madelyn Simmons, Professional Staff
                 Michael Nielsen, Legislative Assistant
             Erin Hansen, Democratic Legislative Assistant
                       George E. Whittle, Editor

                            C O N T E N T S

                              ----------                              
                                                                   Page
Introduction.....................................................     1
History of the Legislation.......................................     1
Purpose and Scope................................................     2
Section-by-Section Analysis......................................     3
    Section 1. Short Title.......................................     3
    Section 2. Coin Specifications...............................     3
    Section 3. Sources of Bullion................................     3
    Section 4. Selection of Design...............................     4
    Section 5. Issuance of Coins.................................     4
    Section 6. Sale of Coins.....................................     4
    Section 7. Surcharge.........................................     4
Regulatory Impact Statement......................................     4
Cost of Legislation..............................................     5
Changes in Existing Law (Cordon Rule)............................     7
                                                       Calendar No. 706
106th Congress                                                   Report
                                 SENATE
 2d Session                                                     106-355

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               2002 WINTER OLYMPIC COMMEMORATIVE COIN ACT

                                _______
                                

    July 24 (legislative day, July 21), 2000.--Ordered to be printed

                                _______
                                

 Mr. Gramm, from the Committee on Banking, Housing, and Urban Affairs, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 2266]

    The Committee on Banking, Housing, and Urban Affairs to 
which was referred the bill (S. 2266) to provide for a 
commemorative coin program to commemorate the 2002 Winter 
Olympic games to be held in Salt Lake City, Utah, having 
considered the same, reports favorably thereon with one 
amendment and recommends that the bill as amended do pass.

                              INTRODUCTION

    On July 13, 2000, the Senate Committee on Banking, Housing, 
and Urban Affairs met in legislative session and marked up and 
ordered to be reported S. 2266, a bill to provide for a 
commemorative coin program to commemorate the 2002 Winter 
Olympic games to be held in Salt Lake City, Utah, with one 
amendment. The Committee's action was taken by a voice vote.

                       HISTORY OF THE LEGISLATION

    The 2002 Winter Olympic Commemorative Coin Act, S. 2266, 
was introduced on March 22, 2000, by Senator Bob Bennett and 
Senator Orrin Hatch. Senators Abraham, Akaka, Allard, Ashcroft, 
Biden, Bond, Boxer, Brownback, Breaux, Bunning, Byrd, Burns, 
Campbell, Chafee, Cochran, Collins, Conrad, Coverdell, Craig, 
Crapo, DeWine, Dodd, Domenici, Dorgan, Enzi, Feingold, 
Feinstein, Fitzgerald, Gorton, Graham, Grassley, Hagel, Helms, 
Hutchison, Inhofe, Jeffords, Johnson, Kerrey, Kohl, Leahy, 
Levin, Lott, Lugar, Mack, McConnell, Mikulski, Murkowski, 
Murray, Nickles, Reid, Robb, Roberts, Rockefeller, Roth, 
Schumer, Smith of New Hampshire, Smith of Oregon, Snowe, 
Specter, Stevens, Thomas, Thompson, Thurmond, Torricelli, 
Voinovich, Warner, Wellstone, and Wyden were original 
cosponsors. S. 2266 has two purposes: first, to strike and sell 
five-dollar gold and one-dollar silver commemorative coins in 
proof 1 and uncirculated 2 qualities, and 
second, once all costs of the program have been recovered, to 
distribute the remaining proceeds from surcharges to the Salt 
Lake Organizing Committee for the Olympic Winter Games of 2002 
3 and to the United States Olympic 
Committee.4
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    \1\ Proof coins are specially produced coins made from highly 
polished planchets, or blanks and special dies, and are often struck 
twice to accent the design. Proof coins receive the highest quality 
strike possible and can be distinguished by their sharpness of detail 
and brilliant, mirror-like surface. Proof refers to the method of 
manufacture and is not a condition, but normally the term implies 
perfect mint state.
    \2\ Uncirculated coins are coins in new condition that do not have 
any signs of wear. A coin with even the slightest sign of wear cannot 
qualify for this condition.
    \3\ The Salt Lake Organizing Committee for the Olympic Winter Games 
of 2002 is a non-profit, tax-exempt organization formed under the laws 
of the State of Utah. Its primary mission is to promote, manage and 
stage the XIX Olympic Winter Games in Salt Lake City.
    \4\ P.L. 95-606, the Amateur Sports Act of 1978 authorized the 
United States Olympic Committee as the coordinating body for all 
Olympic-related athletic activity in the United States. Its primary 
mission involves training, entering and underwriting the full expenses 
for the United States teams in the Olympic and Pan American Games.
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    There were no Committee hearings held on S. 2266. At the 
Committee mark up on July 13, the Committee adopted one 
amendment to S. 2266 that strikes section 6(d) of the bill.

                           PURPOSE AND SCOPE

    The bill reported by the Committee authorizes the Secretary 
of the Treasury (Secretary) to mint and issue silver and gold 
commemorative coins commemorating the 2002 Winter Olympic 
games. The Secretary is also authorized to distribute, on an 
equal basis funds raised from the surcharges added to the price 
of the coins to two organizations.5 Half of the 
funds are to be used by the Salt Lake Organizing Committee for 
the Olympic Winter Games of 2002 in staging and promoting the 
2002 Salt Lake Olympic Winter Games. The remaining half of the 
funds are to be used by the United States Olympic Committee for 
objects and purposes of the Committee, as established in the 
Amateur Sports Act of 1978.6
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    \5\ A surcharge is the dollar amount added to the price of each 
coin. Surcharges are the proceeds distributed by the Secretary of the 
Treasury to the recipient group once all costs of the commemorative 
coin program are satisfied.
    \6\ P.L. 95-606, the Amateur Sports Act of 1978.
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    The designs for the commemorative coins will be selected by 
the Secretary after consultation with the Commission of Fine 
Arts,7 the United States Olympic Committee, and the 
Olympic Properties of the United States.8 The 
designs will be reviewed by the Citizens Commemorative Coin 
Advisory Committee.9
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    \7\ Authority of the Commission of Fine Arts: 40 U.S.C. 104 and 
106, 36 Stat. 371, as amended, and Executive Order 3254 of July 28, 
1921.
    \8\ Olympic Properties of the United States is the sponsorship, 
marketing and business entity created in partnership between the United 
States Olympic Committee and the Salt Lake Organizing Committee. Its 
primary mission is to coordinate all commercial and fund-raising 
activities for the 2002 Winter Olympic Games and the U.S. Olympic 
teams.
    \9\ P.L. 102-390, the United States Mint Reauthorization and Reform 
Act of 1992, established the Citizens Commemorative Coin Advisory 
Committee for the purposes of recommending events, persons or places to 
be commemorated by the issuance of commemorative coins, and to report 
to Congress annually on such recommendations.
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    The Committee recognizes that the primary purpose of this 
program is to commemorate the 2002 Winter Olympic Games to be 
held in Salt Lake City, Utah. For the last 48 years Olympians 
from the United States have been appropriately represented and 
commemorated through the issuance of commemorative coins. This 
program contains the fewest coins ever authorized in a coin 
program, and has been developed in consultation with the 
numismatic community to address collectors' concerns of 
commemorative coin proliferation.
    The one amendment adopted at the Committee mark up of S. 
2266 authorizes that section 6(d) be struck from the bill. This 
section authorized the Secretary to establish a marketing 
program to promote and sell the silver and gold coins 
domestically and internationally. The Committee recognizes the 
importance of promoting and selling the authorized coins, but 
does not agree that statutory language to that end is 
necessary. The Committee believes that through consultations 
with representatives of the Department of the Treasury and the 
United States Mint, both agencies will make every effort to 
ensure the success of this coin program through the standard 
practice incorporated for each and every coin program. The 
Committee also believes that the Secretary will work in full 
cooperation with the Olympic Properties of the United States to 
develop and implement the appropriate marketing and sales 
programs for these coins. The Committee notes significant 
dissatisfaction with coin marketing programs by the Mint in the 
past, and expects that, learning from past mistakes, the Mint 
will conduct an energetic and cost-effective marketing program 
for the sale of these coins.

SECTION-BY-SECTION ANALYSIS OF THE ``2002 WINTER OLYMPIC COMMEMORATIVE 
                               COIN ACT''

Section 1. Short title

    Section 1 provides that the bill may be cited as the ``2002 
Winter Olympic Commemorative Coin Act.''

Section 2. Coin specifications

    Section 2 provides for minting of not more than 80,000 
five-dollar denomination coins weighing 8.359 grams, measuring 
0.850 inches in diameter, and containing 90 percent gold and 10 
percent alloy, and for the minting of not more than 400,000 
one-dollar denomination coins weighing 26.73 grams, measuring 
1.500 inches in diameter, and containing 90 percent silver and 
10 percent copper.
    The designs of the coins minted under this Act shall be 
emblematic of the participation of American athletes in the 
2002 Olympic Winter Games. Each coin will have a designation of 
the value of the coin, an inscription of the year ``2002,'' and 
inscriptions of the words ``Liberty,'' ``In God We Trust,'' 
``United States of America,'' and ``E Pluribus Unum.'' The 
coins minted under this Act shall be legal tender as provided 
in Section 5103 of title 31, United States Code, and all coins 
are considered to be numismatic items for purposes of Section 
5134 of title 31, United States Code.

Section 3. Sources of bullion

    Section 3 provides for the Secretary to obtain the gold for 
minting coins under this Act pursuant to the authority of the 
Secretary under other provisions of law. The Section also 
provides for the Secretary to obtain the silver for minting 
coins under this Act from any available source, including 
stockpiles established under the Strategic and Critical 
Materials Stockpiling Act.10
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    \10\ 50 U.S.C. 98, the Strategic and Critical Materials Stockpiling 
Act.
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Section 4. Selection of design

    Section 4 authorizes the Secretary to select the design for 
the coins minted under this Act after consultation with the 
Commission on Fine Arts, the United States Olympic Committee, 
and the Olympic Properties of the United States. The Citizens 
Commemorative Coin Advisory Committee shall review all designs 
prior to selection by the Secretary.

Section 5. Issuance of coins

    Section 5 authorizes that the qualities of the coins minted 
under this Act shall be in proof and uncirculated qualities. 
This section also provides for the commencement of issuance to 
occur on January 1, 2002. There is an exception that authorizes 
the Secretary to initiate sales of such coins, without 
issuance, before January 1, 2002. Lastly, this section provides 
for a termination of minting authority to occur on December 31, 
2002.

Section 6. Sale of coins

    Section 6 establishes the price of such coins as determined 
by the Secretary to include a price equal to the face value of 
the coins, plus the cost of designing and issuing such coins 
(including labor, materials, dies, use of machinery, overhead 
expenses, and marketing). This section also authorizes the 
Secretary to make bulk sales of the coins issued under this Act 
at a reasonable discount. Prepaid orders, at a reasonable 
discount, shall be accepted by the Secretary prior to issuance 
of such coins.

Section 7. Surcharge

    Section 7 provides for a surcharge to be included in all 
sales of coins issued under this Act. The surcharge for the 
gold coins shall be $35 per coin, and the surcharge for the 
silver coins shall be $10 per coin. This section also 
authorizes the Secretary to distribute surcharges received from 
the sale of coins issued under this Act, subject to section 
5134(f) of title 31, United States Code. Half of the surcharges 
are to be distributed to the Salt Lake Organizing Committee for 
the Olympic Winter Games of 2002 for use in staging and 
promoting the 2002 Salt Lake Olympic Winter Games, and the 
other half is to be distributed to the United States Olympic 
Committee for use by the Committee for the objects and purposes 
of such Committee as established in the Amateur Sports Act of 
1978.
    In addition, this section authorizes that each organization 
that receives any payment from the Secretary shall be subject 
to audit requirements of section 5134(f)(2) of title 31, United 
States Code.

                      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

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, July 20, 2000.
Hon. Phil Gramm,
Chairman, Committee on Banking, Housing, and Urban Affairs, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 2266, the 2002 
Winter Olympic Commemorative Coin Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is John R. 
Righter.
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

S. 2266--2002 Winter Olympic Commemorative Coin Act

    Summary: S. 2266 would direct the U.S. Mint to produce a $5 
gold coin and a $1 silver coin in calendar year 2002 to 
commemorate the 2002 Winter Olympic Games. 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 Salt Lake 
Organizing Committee for the Olympic Winter Games of 2002 
(SLOC) and the United States Olympic Committee (USOC), both 
private entities, as recipients of the income from those 
surcharges.
    CBO estimates that enacting S. 2266 would decrease direct 
spending by about $1.5 million over the 2001-2005 period, but 
would have no net effect on direct spending over the 2001-2010 
period. Because the bill would affect direct spending, pay-as-
you-go procedures would apply. S. 2266 contains no 
intergovernmental or private-sector mandates as defned in the 
Unfunded Mandates Reform Act (UMRA) and would not affect the 
budgets of state, local, or tribal governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 2266 is shown in the following table. In 
addition to those budgetary changes, by using gold obtained 
from the reserves held by the Treasury, CBO estimates that the 
bill would provide the federal government with $5 million to 
$5.5 million in additional cash (in exchange for gold) for 
financing the federal surplus in fiscal year 2002. (Those 
financing effects do not, however, change the surplus). The 
bill would affect budget functions 800 (general government) and 
050 (defense).

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                                                                     By fiscal year, in millions of dollars
                                                               -------------------------------------------------
                                                                  2001      2002      2003      2004      2005
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Receipt of coin surcharges:
    Estimated budget authority................................         0        -6     (\1\)         0         0
    Estimated outlays.........................................         0        -6     (\1\)         0         0
Transfer of coin surcharges:
    Estimated budget authority................................         0         3         3         0         0
    Estimated outlays.........................................         0         3         3         0         0
Purchase of Government silver:
    Estimated budget authority................................         0        -2         0         0         0
    Estimated outlays.........................................         0        -2         0         0         0
Total changes:
    Estimated budget authority................................         0        -5         3         0         0
    Estimated outlays.........................................         0        -5         3         0         0
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\1\ Less than $500,000.

    Basis of estimate: S. 2266 could raise as much as $6.8 
million in surcharges if the Mint sells the maximum number of 
authorized coins. Based on the experience of coin programs 
commemorating prior Olympic Games in the United States and the 
1994 World Cup tournament, CBO estimates that the Mint would 
sell close to all of the coins authorized under S. 2266, 
resulting in surcharges of about $6.5 million. CBO expects the 
Mint would collect most of those surcharges in fiscal year 2002 
and would transfer about one-half of estimated collections to 
the two private organizations in each of fiscal years 2002 and 
2003.
    Under Public Law 104-208, the Mint must ensure that it will 
not lose money on a commemorative coin program before 
transferring any surcharges to a designated recipient 
organization. Thus, CBO estimates that the collection and 
transfer of such surcharges would have no net effect on direct 
spending over the 2001-2005 period. Excluding surcharges, we 
expect that proceeds from the sale of the coins would more than 
cover the costs of producing them, but that the Mint would 
spend any net proceeds to fund other commercial activities. 
Therefore, we estimate that there would be no other net effect 
on the Mint's outlays.
    In addition, because the Mint would use silver obtained 
from the Defense Logistics Agency (DLA) to produce the silver 
coins, CBO estimates that S. 2266 would increase offsetting 
collections to the government from the sale of excess silver by 
about $1.5 million in fiscal year 2002, with DLA receiving 
about three-quarters of that amount. (By law, the Mint must 
deposit as miscellaneous offsetting receipts to the Treasury an 
amount that is equal to the book value of the silver it 
acquires from DLA.) However, the government's supply of silver 
is limited, and we anticipate that it will be depleted by 
fiscal year 2007. Hence, the use of silver for the Winter 
Olympics coin in 2002 would leave less available to produce 
currently authorized coins in subsequent years, resulting in a 
loss of offsetting receipts of about $1.5 million in 2007.
    Similarly, we expect that the Mint would use gold obtained 
from the reserves held at the Treasury to produce the gold 
coin. However, 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 surplus--CBO has not included such receipts in its 
estimate. CBO estimates that S. 2266 would provide the federal 
government with between $5 million and $5.5 million in 
additional cash (in exchange for gold) for financing the 
federal surplus in fiscal year 2002.
    Pay-as-you-go considerations: The Balanced Budget and 
Emergency Deficit Control Act sets up pay-as-you-go procedures 
for legislation affecting direct spending or receipts. The net 
changes in outlays that are subject to pay-as-you-go procedures 
are shown in the following table. For the purposes of enforcing 
pay-as-you-go procedures, only the effects in the current year, 
the budget year, and the succeeding four years are counted.

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                                                        By fiscal year, in millions of dollars
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                                      2000   2001   2002   2003   2004   2005   2006   2007   2008   2009   2010
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Changes in outlays.................      0     -5      3      0      0      0      0      2      0      0      0
Changes in receipts................                                 Not applicable
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    Intergovernmental and private-sector impact: S. 2266 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would not affect the budgets of state, 
local, or tribal governments.
    Estimate prepared by: John R. Righter.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                 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.

                                
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