Coin Legislation

H.R. 621 Girl Scouts USA Centennial Commemorative Coin Act was recently passed in both the House of Representatives and the Senate. All that remains for the bill to become law is the President’s signature, which is expected soon.

The bill will authorize the production of up to 350,000 silver dollars, produced to mark the centennial of the Girl Scouts of the United States of America. The coins would be issued during the calendar year beginning January 1, 2013. Designs will be selected by the Secretary of the Treasury after consultation with the Girl Scouts of the United States of America, the Commission of Fine Arts, and review by the Citizens Coinage Advisory Committee.

A $10 surcharge is added to the cost of each coin, payable to the Girl Scouts of America for program development and delivery.

S.1769: Options for Investors though United States Certified Coins Act of 2009

Summary: Proposal to amend the Internal Revenue Code to allow the purchase of certain collectible coins for individual retirement accounts and self directed pension accounts.

Sponsor: Sen. David Vitter

Date Introduced: October 8, 2009

Current Status: Referred to Committee (October 9, 2009)

Legislation has been introduced which could potentially have a great impact on the market for certified collectible coins. The recently intoduced S. 1769 would amend the Internal Revenue Code of 1986 to allow certain coins to be purchased for retirement accounts.

The bill outlines certain requirements for the coins. Specifically, (1) the coin must be certified by an independent, third party grading service; (2) the coin coin must be or must have been at any time legal tender in the United States; and (3) the coin must be traded on a nationally recognized electronic coin trading network or listed by an independent coin wholesale reporting service.

If the coin meets these requirements, it could be purchased by an individual retirement account or other individually directed pension plan account. Other requirements regarding physical possession of the coins and indicia of ownership would also apply.

Similar legislation had been introduced in 2005 and 2007, but neither bill was voted on in the House or Senate. In order to become law, a bill must be passed in both the House and Senate, and signed into law by the President. Based on the failure of past attempts to pass this bill, the passage of S. 1769 doesn’t appear to be likely. Nonetheless, it will be closely watched by coin collectors.

H.R. 3549: National September 11 Memorial & Museum Commemorative Coin Act of 2009

Summary: Proposal for commemorative coins to mark the 10th anniversary of the September 11, 2001 terrorist attacks on the United States. Up to 2,000,000 silver dollars would be produced in proof and uncirculated versions at two US Mint facilities.

Sponsor: Rep. Jerrold Nadler

Date Introduced: September 10, 2009

Current Status: Referred to Committee (September 10, 2009)

New legislation has been introduced which seeks to authorize commemorative coins for the 10th anniversary of the September 11, 2001 terrorist attacks on the United States. Surcharges from the sale of coins would be paid to the National September 11 Memorial & Museum at the World Trade Center to support its operations and maintenance. There are 51 cosponsors of the bill.

The bill would authorize up to 2,000,000 $1 silver coins to be issued in the year 2011. Each coin would weight 26.73 grams, with a diameter of 1.5 inches, and composition of 90% silver and 10% copper. The maximum authorized mintage is much higher than typical for recent commemorative silver dollars, but nonetheless the entire amount could probably sell out since they would be in high demand for the broader public.

The design of the coins would be emblematic of the courage, sacrifice, and strength of the individuals who perished in the attacks, the bravery of those who risked their lives to save others, and the endurance, resilience, and hope of those who survived.

Required inscriptions include the face value, year of issuance, “Liberty”, “In God We Trust”, “United States of America”, “E Pluribus Unum”, and “Always Remember”.

The designs would be selected by the Secretary of the Treasury after consultation with the National September 11 Memorial & Museum at the World Trade Center, the Commission of Fine Arts, and review by the Citizens Coinage Advisory Committee.

Coins would be produced in proof and uncirculated versions. Two US Mint facilities may be used to strike the coins with a recommendation that half of the mintage be struck at Philadelphia and half at West Point.

On September 9, 2009, H.R. 2007 Star Spangled Banner Commemorative Coin Act was passed in the House of Representatives.

A similar bill had been introduced on March 19, 2009 as S.653. The House version of the bill H.R. 2007 was later introduced on April 23, 2009.

The bill calls for the issuance of $5 Gold and $1 Silver commemorative coins to mark the bicentennial of the writing of the Star Spangled Banner. The coin designs would be emblematic of the War of 1812 and particularly the Battle for Baltimore that formed the backdrop for the writing of the National Anthem.

In order to become law, the bill must be voted on and passed in both the House and Senate, and then signed into law by the President.

Because there was less activity on the coin legislation front, the latest summary will comprise the two months of June and July 2009. Much of the activity came in the closing days of the month of July. Legislation included three proposals for new commemorative coin programs, one corollary bill, and one proposal related to the taxation of precious metals investors.

On June 10, 2009, HR 2799 was introduced which proposed Gold and Silver US Marshals Commemorative Coins for 2014.  The requirements for the gold coin were very atypical for a commemorative coin. The gold coins would contain one ounce of gold and have a face value of only $5. The coins would be struck in high relief and also feature edge lettering.

On June 25, 2009, S 1367 was introduced which seeks to provide fair treatment for precious metals investors. The bill would amend a portion of the Internal Revenue Code to specifically exclude precious metals from the current classifications as “collectibles” which are taxed at 28%.

On July 24, 2009, HR 3341 was introduced seeking Ronald Regan Commemorative Coins. He has been the subject of numerous coin related legislative proposals over the years. The latest seeks gold and silver commemorative coins for 2013.

On July 30, 2009, HR 3405 was introduced in the House. This is a corollary bill to S.758, which seeks Palladium Saint Gaudens Double Eagle coins.

On July 31, 2009, HR 3464 and S 1553 were introduced which seek Future Farmers Commemorative Coins. The coins would be issued for the 85th anniversary of the organization and include gold and silver commemorative coins.

View the Coin Legislation Summary for a full list of all coin related legislation introduced during 2009.