PUBLIC LAW 107–201—JULY 23, 2002

SUPPORT OF AMERICAN EAGLE SILVER

BULLION PROGRAM ACT

116 STAT. 736 PUBLIC LAW 107–201—JULY 23, 2002

Public Law 107–201

107th Congress

An Act

To authorize the Secretary of the Treasury to purchase silver on the open market

when the silver stockpile is depleted, to be used to mint coins.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘Support of American Eagle

Silver Bullion Program Act’’.

SEC. 2. FINDINGS.

Congress finds that—

(1) the American Eagle Silver Bullion coin leads the global

market, and is the largest and most popular silver coin program

in the United States;

(2) established in 1986, the American Eagle Silver Bullion

Program is the most successful silver bullion program in the

world;

(3) from fiscal year 1995 through fiscal year 2001, the

American Eagle Silver Bullion Program generated—

(A) revenues of $264,100,000; and

(B) sufficient profits to significantly reduce the national

debt;

(4) with the depletion of silver reserves in the Defense

Logistic Agency’s Strategic and Critical Materials Stockpile,

it is necessary for the Department of the Treasury to acquire

silver from other sources in order to preserve the American

Eagle Silver Bullion Program;

(5) with the ability to obtain silver from other sources,

the United States Mint can continue the highly successful

American Eagle Silver Bullion Program, exercising sound business judgment and market acquisition practices in its approach

to the silver market, resulting in continuing profitability of

the program;

(6) in 2001, silver was commercially produced in 12 States,

including, Alaska, Arizona, California, Colorado, Idaho, Missouri, Montana, Nevada, New Mexico, South Dakota, Utah,

and Washington;

(7) Nevada is the largest silver producing State in the

Nation, producing—

(A) 17,500,000 ounces of silver in 2001; and

(B) 34 percent of United States silver production in

2000;

(8) the mining industry in Idaho is vital to the economy

of the State, and the Silver Valley in northern Idaho leads

31 USC 5116

note.

31 USC 5101

note.

Support of

American Eagle

Silver Bullion

Program Act.

July 23, 2002

[S. 2594]

PUBLIC LAW 107–201—JULY 23, 2002 116 STAT. 737

the world in recorded silver production, with over 1,100,000,000

ounces of silver produced between 1884 and 2001;

(9) the largest, active silver producing mine in the Nation

is the McCoy/Cove Mine in Nevada, which produced more than

107,000,000 ounces of silver between 1989 and 2001;

(10) the mining industry in Idaho—

(A) employs more than 3,000 people;

(B) contributes more than $900,000,000 to the Idaho

economy; and

(C) produces $70,000,000 worth of silver per year;

(11) the silver mines of the Comstock lode, the premier

silver producing deposit in Nevada, brought people and wealth

to the region, paving the way for statehood in 1864, and giving

Nevada its nickname as ‘‘the Silver State’’;

(12) mines in the Silver Valley—

(A) represent an important part of the mining history

of Idaho and the United States; and

(B) have served in the past as key components of

the United States war effort; and

(13) silver has been mined in Nevada throughout its history, with every significant metal mining camp in Nevada producing some silver.

SEC. 3. PURCHASE OF SILVER BY THE SECRETARY OF THE TREASURY.

(a) PURCHASE OF SILVER.—

(1) IN GENERAL.—Section 5116(b)(2) of title 31, United

States Code, is amended by inserting after the second sentence

the following: ‘‘At such time as the silver stockpile is depleted,

the Secretary shall obtain silver as described in paragraph

(1) to mint coins authorized under section 5112(e). If it is

not economically feasible to obtain such silver, the Secretary

may obtain silver for coins authorized under section 5112(e)

from other available sources. The Secretary shall not pay more

than the average world price for silver under any circumstances.

As used in this paragraph, the term ‘average world price’ means

the price determined by a widely recognized commodity

exchange at the time the silver is obtained by the Secretary.’’.

(2) RULEMAKING AUTHORITY.—The Secretary of the

Treasury shall issue regulations to implement the amendments

made by paragraph (1).

(b) STUDY REQUIRED.—

(1) STUDY.—The Secretary of the Treasury shall conduct

a study of the impact on the United States silver market

of the American Eagle Silver Bullion Program, established

under section 5112(e) of title 31, United States Code.

(2) REPORT.—Not later than 1 year after the date of enactment of this Act, the Secretary of the Treasury shall submit

a report of the study conducted under paragraph (1) to the

chairman and ranking minority member of—

(A) the Committee on Banking, Housing, and Urban

Affairs of the Senate; and

(B) the Committee on Financial Services of the House

of Representatives.

(c) ANNUAL REPORT.—

(1) IN GENERAL.—The Director of the United States Mint

shall prepare and submit to Congress an annual report on

31 USC 5116

note.

Deadline.

31 USC 5112

note.

31 USC 5116

note.

116 STAT. 738 PUBLIC LAW 107–201—JULY 23, 2002

LEGISLATIVE HISTORY—S. 2594:

CONGRESSIONAL RECORD, Vol. 148 (2002):

June 21, considered and passed Senate.

June 27, considered and passed House.

Æ

the purchases of silver made pursuant to this Act and the

amendments made by this Act.

(2) CONCURRENT SUBMISSION.—The report required by

paragraph (1) may be incorporated into the annual report of

the Director of the United States Mint on the operations of

the mint and assay offices, referred to in section 1329 of title

44, United States Code.

Approved July 23, 2002.