On September 21, 2012, bills were introduced in the Senate and House of Representatives which if passed would have a significant impact on United States commemorative coin programs. Each bill seeks to prohibit surcharges raised from the sale of numismatic items to be distributed to organizations outside of the federal government.
All modern commemorative coin programs have been authorized by Acts of Congress. The authorizing legislation for each program has typically included surcharge amounts to be added to the cost of each coin and later distributed to one or more beneficiary organizations. Since 1982, more than $418 million in surcharges have been raised through commemorative coin programs. Most recently, the two commemorative coin programs for 2011 raised an estimated $5.5 million in surcharges to be distributed to the Army Historical Foundation and the Congressional Medal of Honor Foundation. The surcharges raised from the 2012 programs are authorized to be distributed to the National Infantry Foundation and the Maryland War of 1812 Bicentennial Commission.
Existing law does carry some requirements to be fulfilled before surcharges raised from a commemorative coin program may be distributed. United States Code Title 31, Section 5134(f) indicates that surcharges may only be distributed provided that all numismatic program costs have been recovered. Additionally, the recipient organization must demonstrate that they have raised funds from private sources in an amount equal to or greater than the funds generated from commemorative coin surcharges. If the matching funds are not raised within two years of the conclusion of commemorative coin sales, then the surcharges are deposited in the Treasury as miscellaneous receipts.
The bills S. 3612 and H.R. 6495 Commemorative Coins Reform Act of 2012 would specifically prohibit the payment of surcharges to private organizations or entities. It is instead specified that surcharges collected in connection with the sale of any numismatic item should be used to recover all numismatic operation and program costs. Any excess amounts would be transferred to the general fund of the Treasury for the purpose of deficit reduction.
S. 3612 was introduced by Sen. Jim DeMint and currently has seven cosponsors. H.R. 6495 was introduced by Rep. Justin Amash and currently has one cosponsor. Both bills have been referred to committee. In order to become law, one of the bills must be passed in both the Senate and House of Representatives, and then signed into law by the President.
The bills specify that the prohibition of payments would apply to any commemorative coin program established or numismatic item produced pursuant to an Act enacted on or after the date of enactment of the Commemorative Coins Reform Act. As such, this year’s commemorative coin programs as well as future programs that have already been authorized would not be impacted by the prohibition.
Laws have already been passed to authorize the following future commemorative coin programs with the indicated beneficiary organizations:
- 2013 United States Army 5 Star Generals Commemorative Coins – surcharges distributable to the Command and General Staff College Foundation.
- 2013 Girl Scouts of the USA Commemorative Coins -surcharges distributable to the Girl Scouts of the United States of America.
- 2014 Civil Rights Act of 1964 Sesquicentennial Commemorative Coins – surcharges distributable to the United Negro College Fund.
- 2014 National Baseball Hall of Fame Commemorative Coins – surcharges distributable to the National Baseball Hall of Fame.
- 2015 US Marshals Service Commemorative Coins – first $5 million of surcharges distributable to the US Marshals Museum with additional amounts distributed in thirds to the National Center for Missing & Exploited Children, the Federal Law Enforcement Officers Association Foundation, and the National Law Enforcement Officers Memorial Fund.
As it is, many of the commem programs ARE for a national (and often federal) commem purpose and so the money really gets allocation to national purposes as it is. To take all surcharges away from other commem events dis-incentivizes any reason why the promoters of the commem event should even offer the coins if it will not help in fund raising. Don’t the sponsoring Senators or Congressmen do any diligence IN THE FIRST PLACE to determine if the commem event is worthy and the commem organization deemed worthy to receive the funds? C’mon now, this bill just sounds good but the money that the fed would get (which is pocket change payment the nat’l debt) vs. the commem organization TO WHOM CAN REALLY MAKE A BIG DIFFERENCE? This is just another feel good bill with no good feel.
Gary, I agree with your well put comment. Take the Marshall Service coin, whose surcharges will go towards three different groups, including the National Center for Missing and Exlpoited Children. It’s not like that group is rolling in money. They can use all they can get, and I am happy to have $10 go towards a good cause like that. If Congress does not think the coin should be issued, then don’t vote for it. And as it is any revenues after cost and surcharges is partly used to reduce the deficit.
Typical Sen DeMint Demagoguery. If these commemorative programs can benefit causes and groups without using tax dollars I don’t see what the problem is. And Louis is absolutely correct, don’t vote for it if you think it’s not appropriate.
If he’s so worried about lowering the debt, then he should propose a commemorative “Debt” coin whose proceeds would do exactly that.
Another thing that the makers of this bill don’t take into account is that there will be no surcharges attached to future commemorative coins. Without the usual surcharges of $35 for gold pieces and $10 for silver, there will be no “overage” to give back to the general fund for deficit reduction.
Like Gary and Louis have said, this ill-conceived bill will lead to practically no support for future commemorative bills. (Supporters include both the organization that will benefit from the bill as well as congressmen who seek goodwill from that organization.)
It seems that the makers of this bill are under the impression that current surcharges are in place to give the US Mint a built-in profit, and that the Mint gives this profit to private organizations for altruistic reasons. They fail to understand that these surcharges are intended and required to be transferred to the appropriate organization according to the law. If this handoff is not allowed, there will be no surcharge, and therefore no support for a commemorative bill … ergo, no commemorative bill and nothing to give the general fund.
If on its own, the Mint or Congress does initiate a commemorative coin, there will be no surcharge when the coin goes on sale. Again, there will be nothing to give to the general fund.
The only way the general fund will receive anything is if Congress puts language into the commem bill that a surcharge of $xx will be added for the expressed purpose of reducing the federal debt. I don’t think that will sit well with collectors – why should we be singled out to reduce the federal debt? After all, a $10 surcharge on a $50 silver commem amounts to a 20% “tax” on coin collectors.
And in actuality, the few millions of dollars that might be raised will probably be 1% of 1% of 1% (or less) of our national deficit or spending. It won’t make any discernible difference, and yet it will have a major impact on numismatics.
“Take the Marshall Service coin, whose surcharges will go towards three different groups, including the National Center for Missing and Exlpoited Children.”
The three different groups mentioned will not receive any surcharges unless the total surcharges raised exceed $5 million, which based on recent commemorative coin programs seems unlikely. The three coin Army commem program from 2011 raised a little over $3 million in surcharges.
Wow, this would have really screwed a private organization like the Boy Scouts if it had come out earlier.
I agree on the Marshall coin that it is unlikely the threshold will be met, but my point was really a much broader one not specific to that coin, which is that one person’s “special interest” is another person’s worthy cause. I often hear people say they don’t like the role private groups play in the commem coin process. But to me the vast majority of groups involved do imp. and worthy things. If not, Congress should not approve the coin in the first place.