107TH CONGRESS
2D SESSION
H. R. 4846
AN ACT
To amend title 31, United States Code, to clarify
the sources of silver for bullion coins, and for
other purposes.
107TH CONGRESS
2D SESSION
H. R. 4846
AN ACT
To amend title 31, United States Code, to clarify the sources
of silver for bullion coins, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Silver Eagle Coin Con-
tinuation Act of 2002’’.
SEC. 2. DELETION OF LIMITATION ON ACQUISITION OF SIL-
VER FOR $1 COIN FROM ABOLISHED STOCK
PILE.
(a) FINDINGS.—The Congress finds that—
(1) the American Eagle silver bullion coin leads
the global market, and is the largest and most pop-
ular silver coin program in the United States;
(2) established in 1986, the American Eagle sil-
ver bullion program is the most successful silver bul-
lion 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 re-
duce 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 Depart-
ment of the Treasury to acquire silver from other
sources in order to preserve the American Eagle sil-
ver 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 pro-
gram, exercising sound business judgment and mar-
ket 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 pro-
duction in 2000;
(8) the mining industry in Idaho is vital to the
economy of the State, and the Silver Valley in north-
ern Idaho leads the world in recorded silver produc-
tion, with over 1,100,000,000 ounces of silver pro-
duced 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 compo-
nents of the United States war effort; and
(13) silver has been mined in Nevada through-
out its history, with every significant metal mining
camp in Nevada producing some silver.
(b) IN GENERAL.—Section 5116(b)(2) of title 31,
United States Code, is amended—
(1) in the 1st sentence, by striking ‘‘, except sil-
ver transferred’’ and all that follows through the pe-
riod at the end of such sentence and inserting ‘‘or
may obtain silver from other sources as appro-
priate.’’; and
(2) by striking the 2nd sentence.
(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 coins minted and issued
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 con-
ducted 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 the Con-
gress an annual report on the purchases of silver
made by the Secretary of the Treasury under section
5116 of title 31, United States Code, on behalf of
the United States Mint.
(2) CONCURRENT SUBMISSION.—The report re-
quired 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.
SEC. 3. 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 organiza-
tion unless—
‘‘(i) all numismatic operation and pro-
gram costs allocable to the program under
which such numismatic item is produced
and sold have been recovered; and
‘‘(ii) the designated recipient organi-
zation submits an audited financial state-
ment 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 sur-
charge imposed on the sale of any numismatic
item that may otherwise be paid from the fund,
under any provision of law relating to such nu-
mismatic item, to any designated recipient or-
ganization shall not exceed the amount the or-
ganization 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 sur-
charge may be used.
‘‘(C) UNPAID AMOUNTS.—If any amount
derived from the proceeds of any surcharge im-
posed on the sale of any numismatic item that
may otherwise be paid from the fund, under
any provision of law relating to such numis-
matic item, to any designated recipient organi-
zation remains unpaid to such organization
solely by reason of the matching fund require-
ment 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
Silver Eagle Coin Continuation Act of
2002,
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.
SEC. 4. RESTATEMENT AND REORGANIZATION OF SECTION
5136 OF TITLE 31, UNITED STATES CODE.
(a) IN GENERAL.—Section 5136 of title 31, United
States Code, is amended to read as follows:
‘‘§ 5136. United States Mint Public Enterprise Fund
‘‘(a) ESTABLISHMENT.—There shall be established in
the Treasury of the United States, a fund to be known
as the United States Mint Public Enterprise Fund.
‘‘(b) OPERATIONS OF THE FUND.—
‘‘(1) DEPOSIT OF RECEIPTS.—All receipts from
Mint operations and programs, including the produc-
tion and sale of numismatic items, the production
and sale of circulating coinage, the protection of
Government assets, and gifts and bequests of prop-
erty, real or personal shall be deposited into the
Fund and shall be available without fiscal year limi-
tations.
‘‘(2) PAYMENT OF EXPENSES.—All expenses in-
curred by the Secretary for operations and programs
of the Mint that the Secretary determines, in the
Secretary’s sole discretion, to be ordinary and rea-
sonable incidents of Mint operations and programs,
and any expense incurred pursuant to any obligation
or other commitment of Mint operations and pro-
grams that was entered into before the establish-
ment of the Fund, shall be paid out of the Fund.
‘‘(3) BORROWING AUTHORITY.—
‘‘(A) IN
GENERAL.—The Secretary may
borrow such funds from the General Fund as
may be necessary to meet existing liabilities and
obligations incurred prior to the receipt of reve-
nues into the Fund.
‘‘(B) REPAYMENT WITHIN 1 YEAR.—The
General Fund shall be reimbursed by the Fund
for the amount of any loan under subparagraph
(A) within 1 year of the date of the loan.
‘‘(4) PROCEEDS
OF
SALE
OF
CIRCULATING
COINS.—The Fund may retain receipts from the
Federal Reserve System from the sale of circulating
coins at face value for deposit into the Fund (reten-
tion of receipts is for the circulating operations and
programs).
‘‘(5) EXPENSES OF CITIZENS COMMEMORATIVE
COIN ADVISORY COMMITTEE.—For purposes of para-
graph (2), any expense incurred by the Secretary in
connection with the Citizens Commemorative Coin
Advisory Committee established under section 5135
shall be treated as an ordinary and reasonable inci-
dent of Mint operations and programs.
‘‘(6) TRANSFER OF EXCESS AMOUNTS TO THE
TREASURY.—
‘‘(A) IN GENERAL.—At such times as the
Secretary determines appropriate, but not less
than annually, any amount in the Fund that is
determined to be in excess of the amount re-
quired by the Fund shall be transferred to the
Treasury for deposit as miscellaneous receipts.
‘‘(B) REPORT
TO
CONGRESS.—The Sec-
retary shall submit an annual report to the
Congress containing—
‘‘(i) a statement of the total amount
transferred to the Treasury pursuant to
subparagraph (A) during the period cov-
ered by the report;
‘‘(ii) a statement of the amount by
which the amount on deposit in the Fund
at the end of the period covered by the re-
port exceeds the estimated operating costs
of the Fund for the 1-year period begin-
ning at the end of such period; and
‘‘(iii) an explanation of the specific
purposes for which such excess amounts
are being retained in the Fund.
‘‘(c) INITIAL CAPITALIZATION OF FUND.—The Sec-
retary shall transfer to the Fund all assets and liabilities
of the Mint operations and programs, including all Numis-
matic Public Enterprise Fund assets and liabilities, all re-
ceivables, unpaid obligations and unobligated balances
from the Mint’s appropriation, the Coinage Profit Fund,
and the Coinage Metal Fund, and the land and buildings
of the Philadelphia Mint, Denver Mint, and the Fort Knox
Bullion Depository.
‘‘(d) BUDGET TREATMENT.—
‘‘(1) IN
GENERAL.—The Secretary shall pre-
pare budgets for the Fund, and estimates and state-
ments of financial condition of the Fund in accord-
ance with the requirements of section 9103 which
shall be submitted to the President for inclusion in
the budget submitted under section 1105.
‘‘(2) INCLUSION IN ANNUAL REPORT.—State-
ments of the financial condition of the Fund shall be
included in the Secretary’s annual report on the op-
eration of the Mint.
‘‘(3) TREATMENT AS WHOLLY OWNED GOVERN-
MENT CORPORATION FOR CERTAIN PURPOSES.—Sec-
tion 9104 shall apply to the Fund to the same ex-
tent such section applies to wholly owned Govern-
ment corporations.
‘‘(e) FINANCIAL STATEMENTS, AUDITS, AND RE-
PORTS.—
‘‘(1) ANNUAL
FINANCIAL
STATEMENT
RE-
QUIRED.—By the end of each calendar year, the
Secretary shall prepare an annual financial state-
ment of the Fund for the fiscal year which ends dur-
ing such calendar year.
‘‘(2) CONTENTS OF FINANCIAL STATEMENT.—
Each statement prepared pursuant to paragraph (1)
shall, at a minimum, contain—
‘‘(A) the overall financial position (includ-
ing assets and liabilities) of the Fund as of the
end of the fiscal year;
‘‘(B) the results of the numismatic oper-
ations and programs of the Fund during the
fiscal year;
‘‘(C) the cash flows or the changes in fi-
nancial position of the Fund;
‘‘(D) a reconciliation of the financial state-
ment to the budget reports of the Fund; and
‘‘(E) a supplemental schedule detailing—
‘‘(i) the costs and expenses for the
production, for the marketing, and for the
distribution of each denomination of circu-
lating coins produced by the Mint during
the fiscal year and the per-unit cost of pro-
ducing, of marketing, and of distributing
each denomination of such coins; and
‘‘(ii) the gross revenue derived from
the sales of each such denomination of
coins.
‘‘(3) ANNUAL AUDITS.—
‘‘(A) IN GENERAL.—Each annual financial
statement prepared under paragraph (1) shall
be audited—
‘‘(i) by—
‘‘(I) an independent external
auditor; or
‘‘(II) the Inspector General of
the Department of the Treasury,
as designated by the Secretary; and
‘‘(ii) in accordance with the generally
accepted Government auditing standards
issued by the Comptroller General of the
United States.
‘‘(B) AUDITOR’S REPORT REQUIRED.—The
auditor designated to audit any financial state-
ment of the Fund pursuant to subparagraph
(A) shall submit a report—
‘‘(i) to the Secretary by March 31 of
the year beginning after the end of the fis-
cal year covered by such financial state-
ment; and
‘‘(ii) containing the auditor’s opinion
on—
‘‘(I) the financial statement of
the Fund;
‘‘(II) the internal accounting and
administrative controls and account-
ing systems of the Fund; and
‘‘(III) the Fund’s compliance
with applicable laws and regulations.
‘‘(4) ANNUAL REPORT ON FUND.—
‘‘(A) REPORT REQUIRED.—By April 30 of
each year, the Secretary shall submit a report
on the Fund for the most recently completed
fiscal year to the President, the Congress, and
the Director of the Office of Management and
Budget.
‘‘(B) CONTENTS
OF
ANNUAL
REPORT.—
The annual report required under subparagraph
(A) for any fiscal year shall include—
‘‘(i) the financial statement prepared
under paragraph (1) for such fiscal year;
‘‘(ii) the audit report submitted to the
Secretary pursuant to paragraph (3)(B)
for such fiscal year;
‘‘(iii) a description of activities carried
out during such fiscal year;
‘‘(iv) a summary of information relat-
ing to numismatic operations and pro-
grams contained in the reports on systems