U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1

79–010

" ! SENATE 106TH CONGRESS

2d Session

REPORT

2000

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

(II)

COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS

PHIL GRAMM, Texas, Chairman

RICHARD C. SHELBY, Alabama

CONNIE MACK, Florida

ROBERT F. BENNETT, Utah

ROD GRAMS, Minnesota

WAYNE ALLARD, Colorado

MICHAEL B. ENZI, Wyoming

CHUCK HAGEL, Nebraska

RICK SANTORUM, Pennsylvania

JIM BUNNING, Kentucky

MIKE CRAPO, Idaho

PAUL S. SARBANES, Maryland

CHRISTOPHER J. DODD, Connecticut

JOHN F. KERRY, Massachusetts

RICHARD H. BRYAN, Nevada

TIM JOHNSON, South Dakota

JACK REED, Rhode Island

CHARLES E. SCHUMER, New York

EVAN BAYH, Indiana

JOHN EDWARDS, North Carolina

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

(III)

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

79–010

Calendar No. 706

106TH CONGRESS REPORT

2d Session " ! SENATE 106–355

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

REPORT

[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

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1Proof 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, mirrorlike 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. 3The 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. 4P.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. 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. 6P.L. 95–606, the Amateur Sports Act of 1978.

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. 8Olympic 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. 9P.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.

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

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

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

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,

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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

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10 50 U.S.C. 98, the Strategic and Critical Materials Stockpiling Act.

any available source, including stockpiles established under the

Strategic and Critical Materials Stockpiling Act.10

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.

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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).

By fiscal year, in millions of dollars

2001 2002 2003 2004 2005

Receipt of coin surcharges:

Estimated budget authority ....................................................... 0 ¥6 (1)00

Estimated outlays ...................................................................... 0 ¥6 (1)00

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 ¥2000

Estimated outlays ...................................................................... 0 ¥2000

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By fiscal year, in millions of dollars

2001 2002 2003 2004 2005

Total changes:

Estimated budget authority ....................................................... 0 ¥5300

Estimated outlays ...................................................................... 0 ¥5300

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 onehalf 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

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procedures, only the effects in the current year, the budget year,

and the succeeding four years are counted.

By fiscal year, in millions of dollars

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Changes in outlays .............................. 0 ¥5300002000

Changes in receipts ............................. Not applicable

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.

Æ