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[House Report 108-20]
[From the U.S. Government Publishing Office]

108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     108-20

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

 
           AMERICAN 5-CENT COIN DESIGN CONTINUITY ACT OF 2003

                                _______
                                

 February 26, 2003.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

  Mr. Oxley, from the Committee on Financial Services, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 258]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Financial Services, to whom was referred the 
bill (H.R. 258) to ensure continuity for the design of the 5-
cent coin, establish the Citizens Coinage Advisory Committee, 
and for other purposes, having considered the same, report 
favorably thereon with an amendment and recommend that the bill 
as amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     1
Purpose and Summary..............................................     5
Background and Need for Legislation..............................     6
Hearings.........................................................     6
Committee Consideration..........................................     6
Committee Votes..................................................     6
Committee Oversight Findings.....................................     7
Performance Goals and Objectives.................................     7
New Budget Authority, Entitlement Authority, and Tax Expenditures     7
Committee Cost Estimate..........................................     7
Congressional Budget Office Cost Estimate........................     7
Federal Mandates Statement.......................................     9
Constitutional Authority Statement...............................     9
Applicability to Legislative Branch..............................    10
Section-by-Section Analysis......................................    10

                               Amendment

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``American 5-Cent Coin Design Continuity 
Act of 2003''.

              TITLE I--U.S. 5-CENT COIN DESIGN CONTINUITY

SEC. 101. DESIGNS ON THE 5-CENT COIN.

  (a) In General.--Subject to subsection (b) and after consulting with 
the Citizens Coinage Advisory Committee and the Commission of Fine 
Arts, the Secretary of the Treasury may change the design on the 
obverse and the reverse of the 5-cent coin for coins issued in 2003, 
2004, and 2005 in recognition of the bicentennial of the Louisiana 
Purchase and the expedition of Meriwether Lewis and William Clark.
  (b) Design Specifications.--
          (1) Obverse.--If the Secretary of the Treasury elects to 
        change the obverse of 5-cent coins issued during 2003, 2004, 
        and 2005, the design shall depict a likeness of President 
        Thomas Jefferson, different from the likeness that appeared on 
        the obverse of the 5-cent coins issued during 2002, in 
        recognition of his role with respect to the Louisiana Purchase 
        and the commissioning of the Lewis and Clark expedition.
          (2) Reverse.--If the Secretary of the Treasury elects to 
        change the reverse of the 5-cent coins issued during 2003, 
        2004, and 2005, the design selected shall depict images that 
        are emblematic of the Louisiana Purchase or the expedition of 
        Meriwether Lewis and William Clark.
          (3) Other inscriptions.--5-cent coins issued during 2003, 
        2004, and 2005 shall continue to meet all other requirements 
        for inscriptions and designations applicable to circulating 
        coins under section 5112(d)(1) of title 31, United States Code.

SEC. 102. DESIGNS ON THE 5-CENT COIN SUBSEQUENT TO THE RECOGNITION OF 
                    THE BICENTENNIAL OF THE LOUISIANA PURCHASE AND THE 
                    LEWIS AND CLARK EXPEDITION.

  (a) In General.--Section 5112(d)(1) of title 31, United States Code, 
is amended by inserting after the 4th sentence the following new 
sentence: ``Subject to other provisions of this subsection, the obverse 
of any 5-cent coin issued after December 31, 2005, shall bear the 
likeness of Thomas Jefferson and the reverse of any such 5-cent coin 
shall bear an image of the home of Thomas Jefferson at Monticello.''.
  (b) Design Consultation.--The 2d sentence of section 5112(d)(2) of 
title 31, United States Code, is amended by inserting ``, after 
consulting with the Citizens Coinage Advisory Committee and the 
Commission of Fine Arts,'' after ``The Secretary may''.

SEC. 103. CITIZENS COINAGE ADVISORY COMMITTEE.

  (a) In General.--Section 5135 of title 31, United States Code, is 
amended to read as follows:

``Sec. 5135. Citizens Coinage Advisory Committee

  ``(a) Establishment.--
          ``(1) In general.--There is hereby established the Citizens 
        Coinage Advisory Committee (in this section referred to as the 
        `Advisory Committee') to advise the Secretary of the Treasury 
        on the selection of themes and designs for coins.
          ``(2) Oversight of advisory committee.--The Advisory 
        Committee shall be subject to the authority of the Secretary of 
        the Treasury (hereafter in this section referred to as the 
        `Secretary').
  ``(b) Membership.--
          ``(1) Appointment.--The Advisory Committee shall consist of 
        11 members appointed by the Secretary as follows:
                  ``(A) 7 persons appointed by the Secretary--
                          ``(i) 1 of whom shall be appointed from among 
                        individuals who are specially qualified to 
                        serve on the Advisory Committee by virtue of 
                        their education, training, or experience as a 
                        nationally or internationally recognized 
                        curator in the United States of a numismatic 
                        collection;
                          ``(ii) 1 of whom shall be appointed from 
                        among individuals who are specially qualified 
                        to serve on the Advisory Committee by virtue of 
                        their experience in the medallic arts or 
                        sculpture;
                          ``(iii) 1 of whom shall be appointed from 
                        among individuals who are specially qualified 
                        to serve on the Advisory Committee by virtue of 
                        their education, training, or experience in 
                        American history;
                          ``(iv) 1 of whom shall be appointed from 
                        among individuals who are specially qualified 
                        to serve on the Advisory Committee by virtue of 
                        their education, training, or experience in 
                        numismatics; and
                          ``(v) 3 of whom shall be appointed from among 
                        individuals who can represent the interests of 
                        the general public in the coinage of the United 
                        States.
                  ``(B) 4 persons appointed by the Secretary on the 
                basis of the recommendations of the following officials 
                who shall make the selection for such recommendation 
                from among citizens who are specially qualified to 
                serve on the Advisory Committee by virtue of their 
                education, training, or experience:
                          ``(i) 1 person recommended by the Speaker of 
                        the House of Representatives.
                          ``(ii) 1 person recommended by the minority 
                        leader of the House of Representatives.
                          ``(iii) 1 person recommended by the majority 
                        leader of the Senate.
                          ``(iv) 1 person recommended by the minority 
                        leader of the Senate.
          ``(2) Terms.--
                  ``(A) In general.--Except as provided in subparagraph 
                (B), members of the Advisory Committee shall be 
                appointed for a term of 4 years.
                  ``(B) Terms of initial appointees.--As designated by 
                the Secretary at the time of appointment, of the 
                members first appointed--
                          ``(i) 4 of the members appointed under 
                        paragraph (1)(A) shall be appointed for a term 
                        of 4 years;
                          ``(ii) the 4 members appointed under 
                        paragraph (1)(B) shall be appointed for a term 
                        of 3 years; and
                          ``(ii) 3 of the members appointed under 
                        paragraph (1)(A) shall be appointed for a term 
                        of 2 years.
          ``(3) Preservation of public advisory status.--No individual 
        may be appointed to the Advisory Committee while serving as an 
        officer or employee of the Federal Government.
          ``(4) Continuation of service.--Each appointed member may 
        continue to serve for up to 6 months after the expiration of 
        the term of office to which such member was appointed until a 
        successor has been appointed.
          ``(5) Vacancy and removal.--
                  ``(A) In general.--Any vacancy on the Advisory 
                Committee shall be filled in the manner in which the 
                original appointment was made.
                  ``(B) Removal.--Advisory Committee members shall 
                serve at the discretion of the Secretary and may be 
                removed at any time for good cause.
          ``(6) Chairperson.--The Chairperson of the Advisory Committee 
        shall be appointed for a term of 1 year by the Secretary from 
        among the members of the Advisory Committee.
          ``(7) Pay and expenses.--Members of the Advisory Committee 
        shall serve without pay for such service but each member of the 
        Advisory Committee shall be reimbursed from the United States 
        Mint Public Enterprise Fund for travel, lodging, meals, and 
        incidental expenses incurred in connection with attendance of 
        such members at meetings of the Advisory Committee in the same 
        amounts and under the same conditions as employees of the 
        United States Mint who engage in official travel, as determined 
        by the Secretary.
          ``(8) Meetings.--
                  ``(A) In general.--The Advisory Committee shall meet 
                at the call of the Secretary, the chairperson, or a 
                majority of the members, but not less frequently than 
                twice annually.
                  ``(B) Open meetings.--Each meeting of the Advisory 
                Committee shall be open to the public.
                  ``(C) Prior notice of meetings.--Timely notice of 
                each meeting of the Advisory Committee shall be 
                published in the Federal Register, and timely notice of 
                each meeting shall be made to trade publications and 
                publications of general circulation.
          ``(9) Quorum.--7 members of the Advisory Committee shall 
        constitute a quorum.
  ``(c) Duties of the Advisory Committee.--The duties of the Advisory 
Committee are as follows:
          ``(1) Advising the Secretary of the Treasury on any theme or 
        design proposals relating to circulating coinage, bullion 
        coinage, congressional gold medals and national and other 
        medals produced by the Secretary of the Treasury in accordance 
        with section 5111 of title 31, United States Code.
          ``(2) Advising the Secretary of the Treasury with regard to--
                  ``(A) the events, persons, or places that the 
                Advisory Committee recommends be commemorated by the 
                issuance of commemorative coins in each of the 5 
                calendar years succeeding the year in which a 
                commemorative coin designation is made;
                  ``(B) the mintage level for any commemorative coin 
                recommended under subparagraph (A); and
                  ``(C) the proposed designs for commemorative coins.
  ``(d) Expenses.--The expenses of the Advisory Committee that the 
Secretary of the Treasury determines to be reasonable and appropriate 
shall be paid by the Secretary from the United States Mint Public 
Enterprise Fund.
  ``(e) Administrative Support and Technical Services.--Upon the 
request of the Advisory Committee, or as necessary for the Advisory 
Committee to carry out the responsibilities of the Advisory Committee 
under this section, the Director of the United States Mint shall 
provide to the Advisory Committee the administrative support, technical 
services, and advice that the Secretary of the Treasury determines to 
be reasonable and appropriate.
  ``(f) Consultation Authority.--In carrying out the duties of the 
Advisory Committee under this section, the Advisory Committee may 
consult with the Commission of Fine Arts.
  ``(g) Annual Report.--
          ``(1) Required.--Not later than September 30 of each year, 
        the Advisory Committee shall submit a report to the Secretary, 
        the Committee on Financial Services of the House of 
        Representatives and the Committee on Banking, Housing, and 
        Urban Affairs of the Senate. Should circumstances arise in 
        which the Advisory Committee cannot meet the September 30 
        deadline in any year, the Secretary shall advise the 
        Chairpersons of the Committee on Financial Services of the 
        House of Representatives and the Committee on Banking, Housing, 
        and Urban Affairs of the Senate of the reasons for such delay 
        and the date on which the submission of the report is 
        anticipated.
          ``(2) Contents.--The report required by paragraph (1) shall 
        describe the activities of the Advisory Committee during the 
        preceding year and the reports and recommendations made by the 
        Advisory Committee to the Secretary of the Treasury.
  ``(h) Federal Advisory Committee Act Does Not Apply.--Subject to the 
requirements of subsection (b)(8), the Federal Advisory Committee Act 
shall not apply with respect to the Committee.''.
  (b) Abolishment of Citizens Commemorative Coin Advisory Committee.--
Effective on the date of the enactment of this Act, the Citizens 
Commemorative Coin Advisory Committee (established by section 5135 of 
title 31, United States Code, as in effect before the amendment made by 
subsection (a)) is hereby abolished.
  (c) Continuity of Members of Citizens Commemorative Coin Advisory 
Committee.--Subject to paragraphs (1) and (2) of section 5135(b) of 
title 31, United States Code, any person who is a member of the 
Citizens Commemorative Coin Advisory Committee on the date of the 
enactment of this Act, other than the member of such committee who is 
appointed from among the officers or employees of the United States 
Mint, may continue to serve the remainder of the term to which such 
member was appointed as a member of the Citizens Coinage Advisory 
Committee in one of the positions as determined by the Secretary.
  (d) Technical and Conforming Amendments.--
          (1) Section 5112(l)(4)(A)(ii) of title 31, United States 
        Code, is amended by striking ``Citizens Commemorative Coin 
        Advisory Committee'' and inserting ``Citizens Coinage Advisory 
        Committee''.
          (2) Section 5134(c) of title 31, United States Code, is 
        amended--
                  (A) by striking paragraph (4); and
                  (B) by redesignating paragraph (5) as paragraph (4).

             TITLE II--TECHNICAL AND CLARIFYING PROVISIONS

SEC. 201. CLARIFICATION OF EXISTING LAW.

  (a) In General.--Section 5134(f)(1) of title 31, United States Code, 
is amended to read as follows:
          ``(1) Payment of surcharges.--
                  ``(A) In general.--Notwithstanding any other 
                provision of law, no amount derived from the proceeds 
                of any surcharge imposed on the sale of any numismatic 
                item shall be paid from the fund to any designated 
                recipient organization unless--
                          ``(i) all numismatic operation and program 
                        costs allocable to the program under which such 
                        numismatic item is produced and sold have been 
                        recovered; and
                          ``(ii) the designated recipient organization 
                        submits an audited financial statement that 
                        demonstrates, to the satisfaction of the 
                        Secretary, the amount of funds the organization 
                        has raised from private sources for all 
                        projects or purposes for which the proceeds of 
                        such surcharge may be used.
                  ``(B) Matching fund requirement.--Notwithstanding any 
                other provision of law, the amount derived from the 
                proceeds of any surcharge imposed on the sale of any 
                numismatic item that may otherwise be paid from the 
                fund, under any provision of law relating to such 
                numismatic item, to any designated recipient 
                organization shall not exceed the amount the 
                organization has demonstrated, in accordance with 
                subparagraph (A)(ii), that the organization has raised 
                from private sources for all projects or purposes for 
                which the proceeds of such surcharge may be used.
                  ``(C) Unpaid amounts.--If any amount derived from the 
                proceeds of any surcharge imposed on the sale of any 
                numismatic item that may otherwise be paid from the 
                fund, under any provision of law relating to such 
                numismatic item, to any designated recipient 
                organization remains unpaid to such organization solely 
                by reason of the matching fund requirement contained in 
                subparagraph (B) after the end of the 2-year period 
                beginning on the later of--
                          ``(i) the last day any such numismatic item 
                        is issued by the Secretary; or
                          ``(ii) the date of the enactment of the 
                        American 5-Cent Coin Design Continuity Act of 
                        2003,
                such unpaid amount shall be deposited in the Treasury 
                as miscellaneous receipts.''.
  (b) Effective Date.--The amendment made by subsection (a) shall apply 
as of the date of the enactment of Public Law 104-208.

                          Purpose and Summary

    H.R. 258, the ``American 5-Cent Coin Design Continuity Act 
of 2003'' authorizes the Secretary of the Treasury (Secretary) 
to change the obverse and reverse designs of the circulating 5-
cent coin in each year 2003 through 2006, with the last coin 
becoming the new design for the circulating coin. The 
legislation provides that, if changed, each obverse must be of 
Thomas Jefferson, though all may be different; that the coin 
reverses designs for 2003, 2004 and 2005, if changed, must 
represent themes related to the Louisiana Purchase or the Lewis 
and Clark voyage of discovery; and that the 2006 reverse design 
must be of Jefferson's home, Monticello, though not necessarily 
the same as that currently on the circulating five-cent coin.
    The bill further eliminates the Citizens Commemorative Coin 
Advisory Committee and establishes a Citizens Coinage Advisory 
Committee, independent of the United States Mint, to advise the 
Secretary on design proposals for circulating, bullion and 
commemorative coins and for medals produced by the United 
States Mint. Finally, the bill clarifies original Congressional 
intent to specify that organizations that are designated the 
recipient of surcharge proceeds from the sale of 
Congressionally authorized commemorative coins must raise from 
private sources an amount equal to or greater than the amount 
of surcharge funds realized by the sale of coins, and 
establishes a method of disposing of unclaimed surcharge funds.

                  Background and Need for Legislation

    Current Federal law allows the Secretary to make only a 
single change to the design of a circulating coin within 25 
years of its issue. Thus, specific legislative authority is 
required for the Mint's proposal to strike a 4-year, 4-coin set 
of circulating 5-cent coins--along the lines of the 50-State 
quarters--to recognize the importance of the Lewis and Clark 
voyage and of the Louisiana Purchase. The Coinage Advisory 
Committee is intended to provide the Treasury Secretary, who 
ultimately makes the decision on coin designs, with a ``second 
opinion'' on coin and medal designs proposed by the Mint. The 
committee is designed with citizen ``generalist'' members, 
specialists in aspects of coin design, and citizen nominees 
from both Houses of Congress to ensure broad-based input on 
both design aspects and the political implications of proposed 
designs or design changes. The legislation specifies that the 
Mint may offer technical advice, and must provide the committee 
with all appropriate information as well as resources for the 
committee to function.
    Finally, the legislation clarifies the original 
Congressional intent of the Commemorative Coin Authorization 
and Reform Act of 1995 (enacted as part of H.R. 3610, the 
Department of Defense Appropriations Act of 1997, Public Law 
No. 104-208) on the distribution of coin surcharges from 
commemorative coin sales. During House debate on the original 
bill (H.R. 2614), the author indicated that the funds raised 
from outside sources must match the actual amount of surcharges 
raised, not necessarily the potential amount that could have 
been raised if all coins authorized had been sold:

          The maximum surcharge disbursement to a recipient 
        organization is limited to the amount received from 
        separate fund raising by that organization. No longer 
        will organizations depend exclusively on surcharges for 
        funding projects. This reform will insure that 
        beneficiary organizations are not simply created to 
        receive the proceeds of commemorative coins by requires 
        that they demonstrate an adequate and independent 
        measure of public support. (Congressional Record, 
        December 5, 1995, p. H13947)

Thus, the bill includes a provision to ensure that the 
statutory language reflects this intent.

                                Hearings

    No hearings were held on this legislation in the 108th 
Congress.

                        Committee Consideration

    The Committee on Financial Services met in open session on 
February 13, 2003 and ordered H.R. 258, the American 5-Cent 
Coin Continuity Act, reported to the House with an amendment by 
a voice vote.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. No 
record votes were taken with in conjunction with the 
consideration of this legislation. A motion by Mr. Oxley to 
report the bill to the House with a favorable recommendation 
was agreed to by a voice vote.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee made findings that are 
reflected in this report.

                    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 United States Mint will use the authorities contained 
in this legislation to demonstrate its ability to successfully 
redesign circulating United States coinage, and the public's 
appetite for such redesign.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee adopts as its 
own the estimate of budget authority, entitlement authority, or 
tax expenditures or revenues contained in the cost estimate 
prepared by the Director of the Congressional Budget Office 
pursuant to section 402 of the Congressional Budget Act of 
1974.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, February 25, 2003.
Hon. Michael G. Oxley,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 258, the American 
5-Cent Coin Design Continuity 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,
                                       Douglas Holtz-Eakin,
                                                          Director.
    Enclosure.

H.R. 258--American 5-Cent Coin Design Continuity Act of 2003

    Summary: H.R. 258 would authorize the U.S. Mint to 
temporarily make changes to the design of the 5-cent coin to be 
issued in 2003, 2004, and 2005 to commemorate the 1803 
Louisiana Purchase or the Lewis and Clark expedition. CBO 
estimates that enacting this bill would decrease direct 
spending by $2 million over the 2003-2007 period because the 
new design would generate increased sales of mint coin sets. 
H.R. 258 contains no intergovernmental or private-sector 
mandates as defined 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 H.R. 258 is shown in the following table. 
The effects of this legislation fall within budget function 800 
(general government).

----------------------------------------------------------------------------------------------------------------
                                                                  By fiscal year, in millions of dollars--
                                                           -----------------------------------------------------
                                                              2003     2004     2005     2006     2007     2008
----------------------------------------------------------------------------------------------------------------
                                           CHANGES IN DIRECT SPENDING

Estimated Budget Authority................................        0       -1       -1    (\1\)        0        0
Estimated Outlays.........................................        0       -1       -1    (\1\)        0        0
----------------------------------------------------------------------------------------------------------------
Note.--\1\ =less than -$500,000.

    In addition to the budgetary effects summarized in the 
table, by increasing the public's holding of coins, H.R. 258 
also would provide the government with additional resources for 
financing the federal deficit. The seigniorage (or profit) from 
placing the additional coins in circulation--the difference 
between the face value of the coins and the cost of 
production--would reduce the amount the government needs to 
borrow from the public. CBO estimates that seignoirage 
resulting from the bill would amount to about $15 million 
annually for a two-year period. Under the principles 
established by the President's 1967 Commission on Budget 
Concepts, seigniorage does not directly affect the budget but 
is treated as a means of financing the deficit.

Basis of estimate

            Direct spending
    H.R. 258 would authorize the U.S. Mint to temporarily 
change the design of the current 5-cent coin over the 2003-2005 
period. According to the Mint, it would take approximately 6 
months to design, test, and produce a new 5-cent coin for 
circulation. Thus, assuming this bill is enacted late in fiscal 
year 2003, CBO expects that the new coin would begin 
circulating around the middle of fiscal year 2004. CBO 
estimates that designing and preparing dies for a new 5-cent 
coin would cost less than $100,000 in 2004.
    CBO assumes the Mint would sell 5-coin and 10-coin proof 
and silver sets of the redesigned 5-cent coin. Based on 
information provided by the Mint and historical sales and 
profit information for the 50 States Circulating Commemorative 
Quarter Program, CBO estimates that sales of the 5-cent coin in 
various mint sets would increase offsetting collections to the 
Mint by about $4 million over the 2003-2007 period.
    Based on the cost of previous mint set issues, CBO 
estimates that the Mint would retain and spend about one-half 
of the $4 million in increased offsetting collections to cover 
the costs of producing the coins. The Mint must transfer any 
excess funds it generates from mint set sales to the general 
fund of the Treasury. Net receipts to the Treasury, therefore, 
would total about $2 million.
            Seigniorage
    Based on the experience of the 50 States Commemorative 
Quarter Program, CBO expects that enacting the bill would cause 
the Mint to double the production of nickels because many 
individuals retain and collect the new coins. The seigniorage, 
or profit, from placing additional coins in circulation would 
reduce the amount the government borrows from the public. 
Nickel production has averaged approximately 1.5 billion a year 
over the past decade, and the seigniorage is about 1 cent per 
coin. CBO expects that nickel production would double to 3 
billion coins for two years, so seigniorage earned by the 
federal government would increase by about $30 million over the 
2004-2006 period.
    Intergovernmental and private-sector impact: H.R. 258 
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: Federal costs: Matthew Pickford; 
impact on State, local, and tribal governments: Theresa Gullo; 
impact on the private sector: Paige Piper/Bach.
    Estimate approved by: Robert A. Sunshine, Assistant 
Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      Advisory Committee Statement

    Section 103 of the bill amends section 5135 of title 31, 
United States Code, to abolish the Citizens Commemorative Coin 
Advisory Committee and establishes the Citizens Coinage 
Advisory Committee to advise the Secretary of the Treasury on 
any theme or design proposals relating to circulating coinage, 
bullion coinage, Congressional gold medals and National and 
other medals produced by the Secretary in accordance with 
section 5111 of title 31, United States Code and on any other 
proposals or issues relating to any items produced or sold by 
the United States Mint that the Secretary may request of the 
Advisory Committee. Pursuant to the requirements of subsection 
5(b) of the Federal Advisory Committee Act, the Committee finds 
that the functions of the proposed advisory committee is not 
and cannot be performed by an existing Federal agency or 
advisory commission or by enlarging the mandate of an existing 
advisory committee.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional Authority of Congress to enact this legislation 
is provided by Article 1, section 8, clause 3 (relating to the 
power to regulate interstate and foreign commerce) and clause 5 
(relating to the coining of money).

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation

Section 1. Short title

    This section establishes the short title of the bill, the 
``American 5-Cent Coin Design Continuity Act of 2003''.

              TITLE I--U.S. 5-CENT COIN DESIGN CONTINUITY

Section 101. Designs on the 5-cent coin

    This section authorizes the Secretary of the Treasury to 
change the obverse and reverse designs of the circulating 5-
cent coin in 2003, 2004, and 2005 to recognize the Louisiana 
Purchase and the Lewis and Clark voyage of discovery. All 
obverses must bear the likeness of President Thomas Jefferson, 
though all may be different. All reverses must display images 
emblematic of the Louisiana Purchase or the Lewis and Clark 
voyage of discovery, though all may be different.

Section 102. Designs on the 5-cent coin subsequent to the recognition 
        of the bicentennial of the Louisiana Purchase and the Lewis and 
        Clark Expedition

    This section specifies that the design for the circulating 
coin in 2006 and succeeding years bear on its obverse the 
likeness of President Thomas Jefferson, though it may be 
different than the currently used image or any used in the 
previous three years, and the image on the reverse must be of 
Jefferson's home, Monticello, though it may be different than 
the currently used image.

Section 103. Citizens Coinage Advisory Committee

    This section amends section 5135 of title 31, United States 
Code to eliminate the Citizens Commemorative Coin Advisory 
Committee and establish the Citizens Coinage Advisory 
Committee, an advisory committee independent of the U.S. Mint 
to advise the Secretary on design proposals for coins and 
medals produced by the Mint.
    The provision requires that the rotating membership must 
include individuals with expertise in numismatics, medallic 
arts or sculpture, American history, and other similar areas of 
expertise. It further requires that the Committee hold open 
meetings, that technical and other resources be provided the 
committee by the Mint, and specifies other aspects of its 
functions. Finally, it specifies that members of the Citizens 
Commemorative Coin Advisory Committee are eligible for 
appointment to the Citizens Coinage Advisory Committee so long 
as they meet the other criteria outlined in this section.

             title ii--technical and clarifying provisions

Section 201. Clarification of existing law

    This section clarifies that Congressional intent in 
reforming the commemorative coin program was that organizations 
that are the designated recipients of surcharges realized by 
the sale of Congressionally authorized commemorative coins must 
raise from private sources funds that match the amount of 
surcharges actually raised, not the amount that could have been 
raised if all the coins authorized had actually been sold.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

               CHAPTER 51 OF TITLE 31, UNITED STATES CODE

CHAPTER 51--COINS AND CURRENCY

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SUBCHAPTER II--GENERAL AUTHORITY

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Sec. 5112. Denominations, specifications, and design of coins

  (a)  * * *

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  (d)(1) United States coins shall have the inscription ``In 
God We Trust''. The obverse side of each coin shall have the 
inscription ``Liberty''. The reverse side of each coin shall 
have the inscriptions ``United States of America'' and ``E 
Pluribus Unum'' and a designation of the value of the coin. The 
design on the reverse side of the dollar, half dollar, and 
quarter dollar is an eagle. Subject to other provisions of this 
subsection, the obverse of any 5-cent coin issued after 
December 31, 2005, shall bear the likeness of Thomas Jefferson 
and the reverse of any such 5-cent coin shall bear an image of 
the home of Thomas Jefferson at Monticello. The Secretary of 
the Treasury, in consultation with the Congress, shall select 
appropriate designs for the obverse and reverse sides of the 
dollar coin. However, to prevent or alleviate a shortage of a 
denomination, the Secretary may inscribe coins of the 
denomination with the year that was last inscribed on coins of 
the denomination.
  (2) The Secretary shall prepare the devices, models, hubs, 
and dies for coins, emblems, devices, inscriptions, and designs 
authorized under this chapter. The Secretary may, after 
consulting with the Citizens Coinage Advisory Committee and the 
Commission of Fine Arts, adopt and prepare new designs or 
models of emblems or devices that are authorized in the same 
way as when new coins or devices are authorized. The Secretary 
may change the design or die of a coin only once within 25 
years of the first adoption of the design, model, hub, or die 
for that coin. The Secretary may procure services under section 
3109 of title 5 in carrying out this paragraph.

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  (l) Redesign and Issuance of Quarter Dollar in Commemoration 
of Each of the 50 States.--
          (1)  * * *

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          (4) Selection of design.--
                  (A) In general.--Each of the 50 designs 
                required under this subsection for quarter 
                dollars shall be--
                          (i)  * * *

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                          (ii) reviewed by the [Citizens 
                        Commemorative Coin Advisory Committee] 
                        Citizens Coinage Advisory Committee.

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SUBCHAPTER III--UNITED STATES MINT

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Sec. 5134. Numismatic Public Enterprise Fund

  (a)  * * *

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  (c) Operations of the Fund.--
          (1)  * * *

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          [(4) Expenses of citizens commemorative coin advisory 
        committee.--For purposes of paragraph (1), any expense 
        incurred by the Secretary in connection with the 
        Citizens Commemorative Coin Advisory Committee 
        established under section 5135 shall be treated as an 
        expense incurred for numismatic operations and programs 
        which is an ordinary and reasonable incident of the 
        numismatic business.]
          [(5)] (4) Transfer of excess amounts to the 
        treasury.--
                  (A)  * * *

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  (f) Conditions on Payment of Surcharges to Recipient 
Organizations.--
          [(1) Payment of surcharges.--Notwithstanding any 
        other provision of law, no amount derived from the 
        proceeds of any surcharge imposed on the sale of any 
        numismatic item shall be paid from the fund to any 
        designated recipient organization unless--
                  [(A) all numismatic operation and program 
                costs allocable to the program under which such 
                numismatic item is produced and sold have been 
                recovered; and
                  [(B) the designated recipient organization 
                submits an audited financial statement that 
                demonstrates to the satisfaction of the 
                Secretary of the Treasury that, with respect to 
                all projects or purposes for which the proceeds 
                of such surcharge may be used, the organization 
                has raised funds from private sources for such 
                projects and purposes in an amount that is 
                equal to or greater than the maximum amount the 
                organization may receive from the proceeds of 
                such surcharge.]
          (1) Payment of surcharges.--
                  (A) In general.--Notwithstanding any other 
                provision of law, no amount derived from the 
                proceeds of any surcharge imposed on the sale 
                of any numismatic item shall be paid from the 
                fund to any designated recipient organization 
                unless--
                          (i) all numismatic operation and 
                        program costs allocable to the program 
                        under which such numismatic item is 
                        produced and sold have been recovered; 
                        and
                          (ii) the designated recipient 
                        organization submits an audited 
                        financial statement that demonstrates, 
                        to the satisfaction of the Secretary, 
                        the amount of funds the organization 
                        has raised from private sources for all 
                        projects or purposes for which the 
                        proceeds of such surcharge may be used.
                  (B) Matching fund requirement.--
                Notwithstanding any other provision of law, the 
                amount derived from the proceeds of any 
                surcharge imposed on the sale of any numismatic 
                item that may otherwise be paid from the fund, 
                under any provision of law relating to such 
                numismatic item, to any designated recipient 
                organization shall not exceed the amount the 
                organization has demonstrated, in accordance 
                with subparagraph (A)(ii), that the 
                organization has raised from private sources 
                for all projects or purposes for which the 
                proceeds of such surcharge may be used.
                  (C) Unpaid amounts.--If any amount derived 
                from the proceeds of any surcharge imposed on 
                the sale of any numismatic item that may 
                otherwise be paid from the fund, under any 
                provision of law relating to such numismatic 
                item, to any designated recipient organization 
                remains unpaid to such organization solely by 
                reason of the matching fund requirement 
                contained in subparagraph (B) after the end of 
                the 2-year period beginning on the later of--
                          (i) the last day any such numismatic 
                        item is issued by the Secretary; or
                          (ii) the date of the enactment of the 
                        American 5-Cent Coin Design Continuity 
                        Act of 2003,
                such unpaid amount shall be deposited in the 
                Treasury as miscellaneous receipts.

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[Sec. 5135. Citizens Commemorative Coin Advisory Committee

  [(a) Establishment Required.--
          [(1) In general.--The Secretary of the Treasury shall 
        establish a Citizens Commemorative Coin Advisory 
        Committee (hereafter in this section referred to as the 
        ``Advisory Committee'') to advise the Secretary on the 
        selection of subjects and designs for commemorative 
        coins.
          [(2) Oversight of advisory committee.--The Advisory 
        Committee shall be subject to the direction of the 
        Secretary of the Treasury.
          [(3) Membership.--
                  [(A) Voting members.--The Advisory Committee 
                shall consist of 7 members appointed by the 
                Secretary of the Treasury--
                          [(i) 3 of whom shall be appointed 
                        from among individuals specially 
                        qualified to serve on the committee by 
                        reason of their education, training, or 
                        experience in art, art history, museum 
                        or numismatic collection curation, or 
                        numismatics;
                          [(ii) 1 of whom shall be appointed 
                        from among officers or employees of the 
                        United States Mint who will represent 
                        the interests of the Mint; and
                          [(iii) 3 of whom shall be appointed 
                        from among individuals who will 
                        represent the interest of the general 
                        public.
                  [(B) Nonvoting member.--A member of the 
                Commission of Fine Arts may participate in the 
                proceedings of the Advisory Committee as a 
                nonvoting member.
          [(4) Terms.--
                  [(A) In general.--Each individual appointed 
                to the Advisory Committee under clause (i) or 
                (iii) of paragraph (3)(A) shall be appointed 
                for a term of 4 years.
                  [(B) Interim appointments.--Any member 
                appointed to fill a vacancy occurring before 
                the expiration of the term for which such 
                member's predecessor was appointed shall be 
                appointed only for the remainder of such term.
                  [(C) Continuation of service.--Each member 
                appointed under clause (i) or (iii) of 
                paragraph (3)(A) may continue to serve after 
                the expiration of the term to which such member 
                was appointed until a successor has been 
                appointed and qualified.
          [(5) Compensation; travel expenses.--
                  [(A) No compensation.--Members of the 
                Advisory Committee shall serve without pay.
                  [(B) Travel expenses.--Members of the 
                Advisory Committee shall be entitled to receive 
                travel or transportation expenses, or a per 
                diem allowance in lieu of expenses, while away 
                from such member's home or place of business in 
                connection with such member's service on the 
                Advisory Committee.
          [(6) Funding.--The expenses of the Advisory Committee 
        which the Secretary of the Treasury determines are 
        reasonable and appropriate shall be paid by the 
        Secretary in the manner provided in section 5134.
          [(7) Chairperson.--
                  [(A) In general.--Subject to subparagraph 
                (B), the Chairperson of the Advisory Committee 
                shall be elected by the members of the Advisory 
                Committee from among such members.
                  [(B) Exception.--The member appointed 
                pursuant to paragraph (3)(A)(ii) (or the 
                alternate to that member) may not serve as the 
                Chairperson of the Advisory Committee, 
                beginning on June 1, 1999.
  [(b) Duties.--
          [(1) Preparation of proposals for commemorative coins 
        for 5-year period.--The Advisory Committee shall--
                  [(A) designate annually the events, persons, 
                or places that the Advisory Committee 
                recommends be commemorated by the issuance of 
                commemorative coins in each of the 5 calendar 
                years succeeding the year in which such 
                designation is made;
                  [(B) make recommendations with respect to the 
                mintage level for any commemorative coin 
                recommended under subparagraph (A); and
                  [(C) submit a report to the Congress 
                containing a description of the events, 
                persons, or places which the Committee 
                recommends be commemorated by a coin, the 
                mintage level recommended for any such 
                commemorative coin, and the committee's reasons 
                for such recommendations.
          [(2) Design selection.--The Advisory Committee shall 
        review proposed designs for commemorative coins and 
        provide recommendations to the Secretary of the 
        Treasury with respect to such proposals.
  [(c) Federal Advisory Committee Act Not Applicable.--The 
Federal Advisory Committee Act shall not apply to the Advisory 
Committee.]

Sec. 5135. Citizens Coinage Advisory Committee

  (a) Establishment.--
          (1) In general.--There is hereby established the 
        Citizens Coinage Advisory Committee (in this section 
        referred to as the ``Advisory Committee'') to advise 
        the Secretary of the Treasury on the selection of 
        themes and designs for coins.
          (2) Oversight of advisory committee.--The Advisory 
        Committee shall be subject to the authority of the 
        Secretary of the Treasury (hereafter in this section 
        referred to as the ``Secretary'').
  (b) Membership.--
          (1) Appointment.--The Advisory Committee shall 
        consist of 11 members appointed by the Secretary as 
        follows:
                  (A) 7 persons appointed by the Secretary--
                          (i) 1 of whom shall be appointed from 
                        among individuals who are specially 
                        qualified to serve on the Advisory 
                        Committee by virtue of their education, 
                        training, or experience as a nationally 
                        or internationally recognized curator 
                        in the United States of a numismatic 
                        collection;
                          (ii) 1 of whom shall be appointed 
                        from among individuals who are 
                        specially qualified to serve on the 
                        Advisory Committee by virtue of their 
                        experience in the medallic arts or 
                        sculpture;
                          (iii) 1 of whom shall be appointed 
                        from among individuals who are 
                        specially qualified to serve on the 
                        Advisory Committee by virtue of their 
                        education, training, or experience in 
                        American history;
                          (iv) 1 of whom shall be appointed 
                        from among individuals who are 
                        specially qualified to serve on the 
                        Advisory Committee by virtue of their 
                        education, training, or experience in 
                        numismatics; and
                          (v) 3 of whom shall be appointed from 
                        among individuals who can represent the 
                        interests of the general public in the 
                        coinage of the United States.
                  (B) 4 persons appointed by the Secretary on 
                the basis of the recommendations of the 
                following officials who shall make the 
                selection for such recommendation from among 
                citizens who are specially qualified to serve 
                on the Advisory Committee by virtue of their 
                education, training, or experience:
                          (i) 1 person recommended by the 
                        Speaker of the House of 
                        Representatives.
                          (ii) 1 person recommended by the 
                        minority leader of the House of 
                        Representatives.
                          (iii) 1 person recommended by the 
                        majority leader of the Senate.
                          (iv) 1 person recommended by the 
                        minority leader of the Senate.
          (2) Terms.--
                  (A) In general.--Except as provided in 
                subparagraph (B), members of the Advisory 
                Committee shall be appointed for a term of 4 
                years.
                  (B) Terms of initial appointees.--As 
                designated by the Secretary at the time of 
                appointment, of the members first appointed--
                          (i) 4 of the members appointed under 
                        paragraph (1)(A) shall be appointed for 
                        a term of 4 years;
                          (ii) the 4 members appointed under 
                        paragraph (1)(B) shall be appointed for 
                        a term of 3 years; and
                          (ii) 3 of the members appointed under 
                        paragraph (1)(A) shall be appointed for 
                        a term of 2 years.
          (3) Preservation of public advisory status.--No 
        individual may be appointed to the Advisory Committee 
        while serving as an officer or employee of the Federal 
        Government.
          (4) Continuation of service.--Each appointed member 
        may continue to serve for up to 6 months after the 
        expiration of the term of office to which such member 
        was appointed until a successor has been appointed.
          (5) Vacancy and removal.--
                  (A) In general.--Any vacancy on the Advisory 
                Committee shall be filled in the manner in 
                which the original appointment was made.
                  (B) Removal.--Advisory Committee members 
                shall serve at the discretion of the Secretary 
                and may be removed at any time for good cause.
          (6) Chairperson.--The Chairperson of the Advisory 
        Committee shall be appointed for a term of 1 year by 
        the Secretary from among the members of the Advisory 
        Committee.
          (7) Pay and expenses.--Members of the Advisory 
        Committee shall serve without pay for such service but 
        each member of the Advisory Committee shall be 
        reimbursed from the United States Mint Public 
        Enterprise Fund for travel, lodging, meals, and 
        incidental expenses incurred in connection with 
        attendance of such members at meetings of the Advisory 
        Committee in the same amounts and under the same 
        conditions as employees of the United States Mint who 
        engage in official travel, as determined by the 
        Secretary.
          (8) Meetings.--
                  (A) In general.--The Advisory Committee shall 
                meet at the call of the Secretary, the 
                chairperson, or a majority of the members, but 
                not less frequently than twice annually.
                  (B) Open meetings.--Each meeting of the 
                Advisory Committee shall be open to the public.
                  (C) Prior notice of meetings.--Timely notice 
                of each meeting of the Advisory Committee shall 
                be published in the Federal Register, and 
                timely notice of each meeting shall be made to 
                trade publications and publications of general 
                circulation.
          (9) Quorum.--7 members of the Advisory Committee 
        shall constitute a quorum.
  (c) Duties of the Advisory Committee.--The duties of the 
Advisory Committee are as follows:
          (1) Advising the Secretary of the Treasury on any 
        theme or design proposals relating to circulating 
        coinage, bullion coinage, congressional gold medals and 
        national and other medals produced by the Secretary of 
        the Treasury in accordance with section 5111 of title 
        31, United States Code.
          (2) Advising the Secretary of the Treasury with 
        regard to--
                  (A) the events, persons, or places that the 
                Advisory Committee recommends be commemorated 
                by the issuance of commemorative coins in each 
                of the 5 calendar years succeeding the year in 
                which a commemorative coin designation is made;
                  (B) the mintage level for any commemorative 
                coin recommended under subparagraph (A); and
                  (C) the proposed designs for commemorative 
                coins..
  (d) Expenses.--The expenses of the Advisory Committee that 
the Secretary of the Treasury determines to be reasonable and 
appropriate shall be paid by the Secretary from the United 
States Mint Public Enterprise Fund.
  (e) Administrative Support and Technical Services.--Upon the 
request of the Advisory Committee, or as necessary for the 
Advisory Committee to carry out the responsibilities of the 
Advisory Committee under this section, the Director of the 
United States Mint shall provide to the Advisory Committee the 
administrative support, technical services, and advice that the 
Secretary of the Treasury determines to be reasonable and 
appropriate.
  (f) Consultation Authority.--In carrying out the duties of 
the Advisory Committee under this section, the Advisory 
Committee may consult with the Commission of Fine Arts.
  (g) Annual Report.--
          (1) Required.--Not later than September 30 of each 
        year, the Advisory Committee shall submit a report to 
        the Secretary, the Committee on Financial Services of 
        the House of Representatives and the Committee on 
        Banking, Housing, and Urban Affairs of the Senate. 
        Should circumstances arise in which the Advisory 
        Committee cannot meet the September 30 deadline in any 
        year, the Secretary shall advise the Chairpersons of 
        the Committee on Financial Services of the House of 
        Representatives and the Committee on Banking, Housing, 
        and Urban Affairs of the Senate of the reasons for such 
        delay and the date on which the submission of the 
        report is anticipated.
          (2) Contents.--The report required by paragraph (1) 
        shall describe the activities of the Advisory Committee 
        during the preceding year and the reports and 
        recommendations made by the Advisory Committee to the 
        Secretary of the Treasury.
  (h) Federal Advisory Committee Act Does Not Apply.--Subject 
to the requirements of subsection (b)(8), the Federal Advisory 
Committee Act shall not apply with respect to the Committee.

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