Public Law 3.
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65 Stat. 4 Public Law 3 chapter 4 AN ACT To authorize the construction of modern naval vessels, and for other purposes.March 10, 1951[[H. R. 1001](/us/bill/82/hr/1001)] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*, That the President is herebyNaval vessels.Construction or acquisition. authorized to undertake the construction of, or to acquire and convert, not to exceed five hundred thousand tons of modern naval vessels in the following categories and subcategories:
(a)Combatant vessels, three hundred and fifteen thousand tons, divided into: 1. Warships, one hundred thousand tons, including one aircraft carrier of not to exceed sixty thousand tons. 2. Amphibious warfare vessels and landing craft, one hundred and seventy-five thousand tons. 3. Mine warfare vessels, twenty-five thousand tons. 4. Patrol vessels, fifteen thousand tons.
(b)Auxiliary vessels, one hundred and seventy-five thousand tons.
(c)Service craft, nine thousand tons.
(d)Experimental types, one thousand tons. Sec. 2. The President is authorized to convert not to exceed oneConversion. million tons of existing naval vessels, from among those vessels on the Navy List determined to be best fitted for conversion, to modern naval vessels, of the following categories and subcategories:
(a)Combatant vessels, one million tons, divided into: 1. Warships, nine hundred and ninety thousand tons. 2. Mine warfare vessels, ten thousand tons. Sec. 3. There is hereby authorized to be appropriated, out of anyAppropriation authorized. money in the Treasury not otherwise appropriated, such sums as may be necessary for the construction, acquisition, or conversion of the foregoing vessels. Sec. 4. Notwithstanding the provisions of the Mutual DefenseDisposal restriction.[63 Stat. 714](/us/stat/63/714).[22 U. S.C., Sup. IV, §§ 1571–1604](/us/usc/t22/s1571–1604).[34 U. S. C. §§ 491, 544](/us/usc/t34/s491/544). Assistance Act of 1949, as amended, or the provisions of any other law, no battleship, carrier, cruiser, destroyer, or submarine of the United States which has not been stricken from the Navy Register as provided by section 2 of the Act of August 5, 1882 (22 Stat. 296), as amended, or any interest of the United States in any such vessel, shall hereafter be sold, transferred, or otherwise disposed of unless authorized hereafter by the Congress. Sec. 5. The balance of tonnage authorizations remaining in theTonnage authorizations rescinded.[57 Stat. 604](/us/stat/57/604); [56 Stat. 655](/us/stat/56/655); [55 Stat. 197](/us/stat/55/197); [57 Stat. 92](/us/stat/57/92).[34 U. S. C., Sup. IV, §§ 498C–12, 498c–9, 4980–4, 498C–10](/us/usc/t34/s498C–12/498c–9/4980–4/498C–10). following Acts are hereby rescinded:
(a)The Act of December 17, 1943 (Public Law 204, Seventy-eighth Congress).
(b)The Act of July 9, 1942 (Public Law 665, Seventy-seventh Congress).
(c)The Act of May 24, 1941 (Public Law 72, Seventy-seventh Congress) as amended by the Act of December 17, 1941 (Public Law 353, Seventy-seventh Congress).
(d)The Act of May 26, 1943 (Public Law 61, Seventy-eighth Congress). Approved March 10, 1951. Public Law 4: To authorize the attendance of the United States Marine Band at the celebration of the one hundred and seventy-fifth anniversary of the fortification of Dorchester Heights, Massachusetts, and the evacuation of Boston, Massachusetts, by the British, to be held in South Boston. Massachusetts, on March 17, 1951. Public Law 4 Public Law 4 65 Stat. 4 1951-03-14 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2026-01-19 82 1 public Public Law 4 chapter 5 AN ACT To authorize the attendance of the United States Marine Band at the celebration of the one hundred and seventy-fifth anniversary of the fortification of Dorchester Heights, Massachusetts, and the evacuation of Boston, Massachusetts, by the British, to be held in South Boston. Massachusetts, on March 17, 1951.March 14, 1951[[H. R. 2262](/us/bill/82/hr/2262)] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*, U. S. Marine Band. That the President 65 Stat. 5 is authorized to permit the band of the United States Marine Corps to attend and give concerts at the celebration of the one hundred and seventy-fifth anniversary of the fortification of Dorchester Heights, Massachusetts, and the evacuation of Boston, Massachusetts, by the British, to be held in South Boston, Massachusetts, on March 17, 1951. Sec. 2. For the purpose of defraying the expenses of such band inAppropriation authorized. attending and giving concerts at such celebration, there is hereby authorized to be appropriated a sufficient sum to cover the cost of transportation and pullman accommodations for the leaders and members of the Marine Band, and allowance not to exceed $8 per day each for additional traveling and living expenses while on duty, such allowance to be in addition to the pay and allowance to which they would be entitled while serving their permanent station. Approved March 14, 1951. Public Law 5: To confer Jurisdiction on the Court of Claims to hear, determine, and render judgment upon a certain claim of the Board of County Commissioners of Sedgwick County, Kansas. Public Law 5 Public Law 5 65 Stat. 5 1951-03-19 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2026-01-19 82 1 public Public Law 5 chapter 8 AN ACT To confer Jurisdiction on the Court of Claims to hear, determine, and render judgment upon a certain claim of the Board of County Commissioners of Sedgwick County, Kansas.March 19, 1951[[H. R. 335](/us/bill/82/hr/335)] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*, That jurisdiction is hereby conferred on the Court of Claims to hear, determine, and renderSedgwick County, Kans.Jurisdiction of Court of Claims. judgment upon, notwithstanding any law to the contrary, the claim of the Board of County Commissioners of Sedgwick County, Kansas, against the Government of the United States on account of delinquent real-estate taxes for the tax years 1944, 1945, 1946, and 1947 assessed and levied against three tracts of land in sections 11 and 14 of township 28 south, range 1 east, of the sixth principal meridian, in Sedgwick County, Kansas, constituting the aircraft factory and grounds owned in such years by the Defense Plant Corporation and the Reconstruction Finance Corporation and leased to the Boeing Airplane Company and transferred on or about February 25, 1948, by the Reconstruction Finance Corporation to the United States subject to unpaid taxes for said four years. Such court shall determine the amount of said taxes, and render judgment in favor of said Board of County Commissioners of Sedgwick County, Kansas, and against the United States for the amount of any such taxes which such court may find and adjudge to have been lawfully assessed against such real estate and remaining due and unpaid: *Provided*, That nothing herein shall be construed as authorizing suit or judgment for interest, penalties or charges on, or in connection with said taxes. The court shall haveTime limitation. such jurisdiction if suit is instituted within sixty days after the date of enactment of this Act. Approved March 19, 1951. Public Law 6: To extend the period for the admission of alien spouses and minor children of citizen members of the United States Armed Forces. Public Law 6 Public Law 6 65 Stat. 5 1951-03-19 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2026-01-19 82 1 public Public Law 6 chapter 9 AN ACT To extend the period for the admission of alien spouses and minor children of citizen members of the United States Armed Forces.March 19, 1951[[H. R. 1090](/us/bill/82/hr/1090)] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*, That Public Law 65 Stat. 6717, Eighty-first Congress, is hereby amended to read: “Notwithstanding[64 Stat. 464](/us/stat/64/464).[8 U. S. C.. Sup. IV, § 239](/us/usc/t8/s239).[43 Stat. 162](/us/stat/43/162). the provisions or section 13
(c)of the Immigration Act of 1924, as amended (8 U. S. C. 213 (c)), alien spouses or unmarried minor children of United States citizens serving in, or having an honorable discharge certificate from the Armed Forces of the United States during World War II shall, if otherwise admissible under the immigration laws, be eligible to enter the United States with nonquota immigration visas issued under the provisions of section 4
(a)of the [43 Stat. 155](/us/stat/43/155).[8 U. S. C. Sup. IV, § 204 (a)](/us/usc/t8/s204/a).Immigration Act of 1924, as amended (8 U. S. C. 204 (a)): *Provided*, That in the cases of such alien spouses of United States citizens serving in, or having an honorable discharge certificate from the Armed Forces of the United States during World War II the marriage shall have occurred before twelve months after the enactment of this Act, as hereby amended.” Approved March 19, 1951. Public Law 7: Making additional appropriations for the Legislative Branch for the fiscal year 1951, and for other purposes. Public Law 7 Public Law 7 65 Stat. 6 1951-03-19 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2026-01-19 82 1 public Public Law 7 chapter 10 JOINT RESOLUTION Making additional appropriations for the Legislative Branch for the fiscal year 1951, and for other purposes.March 19, 1951[[H. J. Res. 195](/us/bill/82/hjres/195)] *Resolved by the Senate and House of Representatives of the United States of America in Congress assembled*, Additional appropriations, 1951. That there are hereby appropriated, out of any money in the Treasury not otherwise appropriated, for the fiscal year ending June 30, 1951. the following sums: LEGISLATIVE BRANCH SENATE[64 Stat. 596](/us/stat/64/596). For payment to Mary A. Chapman, widow of Virgil M. Chapman, late a Senator from the State of Kentucky, $12,500. Salaries, Officers and Employees office of the sergeant at arms and doorkeeper For an additional amount, $16,155. Contingent Expenses of the Senate For an additional amount for “Expenses of Inquiries and Investigations”, including an additional $50,000 for the Committee on Appropriations for the objects specified under this heading in Public Law [64 Stat. 595](/us/stat/64/595).759, Eighty-first Congress, $400,000. For an additional amount for “Miscellaneous items”, $200,000. For an additional amount for “Biographical Congressional Directory”, $5,000. HOUSE OF REPRESENTATIVES[64 Stat. 598](/us/stat/64/598). For payment to Leonor Kretzer Sullivan, widow of John B. Sullivan, late a Representative from the State of Missouri, $12,500. Salaries, Officers and Employees committee on appropriations For an additional amount for salaries and expenses, studies and examinations, and so forth, $35,000. 65 Stat. 7 Contingent Expenses of the House Special and select committees: For an additional amount for expenses of special and select committees, $150,000. Approved March 19, 1951. Public Law 8: To continue for a temporary period the provisions of the Housing and Kent Act of 1947, as amended. Public Law 8 Public Law 8 65 Stat. 7 1951-03-23 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2026-01-19 82 1 public Public Law 8 chapter 14 JOINT RESOLUTION To continue for a temporary period the provisions of the Housing and Kent Act of 1947, as amended.March 23, 1951[[S. J. Res. 39](/us/bill/82/sjres/39)] *Resolved by the Senate and House of Representatives of the United States of America in Congress assembled*, That section 204
(f)of[61 Stat. 199](/us/stat/61/199).[50 U. S. C., Sup. IV app. § 1894 (f)](/us/usc/t50/s1894/f). the Housing and Rent Act of 1947, as amended, is amended to read as follows: " “(f) The provisions of this title shall cease to be in effect at the close of June 30, 1951, or upon the date of a proclamation by the President or upon the date specified in a concurrent resolution by the two Houses of the Congress, declaring that the further continuance of the authority granted by this title is not necessary because of the existence of an emergency, whichever date is the earlier; except that as to rights or liabilities incurred prior to such termination date, the provisions of this title and regulations, orders, and requirements thereunder shall be treated as still remaining in force for the purpose of sustaining any proper suit or action with respect to any such right or liability.” " Approved March 23, 1951. Public Law 9: To provide for the renegotiation of contracts, and for other purposes. Public Law 9 Public Law 9 65 Stat. 7 1951-03-23 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2026-01-19 82 1 public Public Law 9 chapter 15 AN ACT To provide for the renegotiation of contracts, and for other purposes.March 23, 1951[[H. R. 1724](/us/bill/82/hr/1724)] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*, Renegotiation Act of 1951. That this Act may be cited as the “Renegotiation Act of 1951”. TITLE I— RENEGOTIATION OF CONTRACTS SEC. 101. DECLARATION OF POLICY. It is hereby recognized and declared that the Congress has made available for the execution of the national defense program extensive funds, by appropriation and otherwise, for the procurement of property, processes, and services, and the construction of facilities necessary for the national defense; that sound execution of the national defense program requires the elimination of excessive profits from contracts made with the United States, and from related subcontracts, in the course of said program; and that the considered policy of the Congress, in the interests of the national defense and the general welfare of the Nation, requires that such excessive profits be eliminated as provided in this title. SEC. 102. CONTRACTS SUBJECT TO RENEGOTIATION.
(a)In General.— The provisions of this title shall be applicable
(1)to all contracts with the Departments specifically named in section 103 (a), and related subcontracts, to the extent of the amounts received 65 Stat. 8 or accrued by a contractor or subcontractor on or after the first day of January 1951, whether such contracts or subcontracts were made on, before, or after such first day, and
(2)to all contracts with the Departments designated by the President under section 103 (a), and related subcontracts, to the extent of the amounts received or accrued by a contractor or subcontractor on or after the first day of the first month beginning after the date of such designation, whether such contracts or subcontracts were made on, before, or after such first day; but the provisions of this title shall not be applicable to receipts or accruals attributable to performance, under contracts or subcontracts, after December 31, 1953.
(b)Performance Prior to July 1, 1950.—Notwithstanding the provisions of subsection (a), the provisions of this title shall not apply to contracts with the Departments, or related subcontracts, to the extent of the amounts received or accrued by a contractor or subcontractor on or after the 1st day of January 1951, which are attributable to performance, under such contracts or subcontracts, prior to July 1, 1950. This subsection shall have no application in the case of contracts, or related subcontracts, which, but for subsection (c), would be subject to the Renegotiation Act of 1948.
(c)Renegotiation Act of 1948.—Nonapplicability.[62 Stat. 259](/us/stat/62/259).[50 U. S. C. Sup. IV, app. § 1193 (i)](/us/usc/t50/s1193/i).The Renegotiation Act of 1948 shall not be applicable to any contract or subcontract to the extent of the amounts received or accrued by a contractor or subcontractor on or after the 1st day of January 1951, whether such contract or subcontract was made on, before, or after such first day. In the case of a fiscal year beginning in 1950 and ending in 1951, if a contractor or subcontractor has receipts or accruals prior to January 1, 1951, from contracts or subcontracts subject to the Renegotiation Act of 1948, and also has receipts or accruals after December 31, 1950, to which the provisions of this title are applicable, the provisions of this title shall, notwithstanding subsection (a), apply to such receipts and accruals prior to January 1, 1951, if the Board and such contractor or subcontractor agree to such application of this title; and in the case [62 Stat. 259](/us/stat/62/259).[50 U. S. C. Sup. IV, app. § 1193 (i)](/us/usc/t50/s1193/i).of such an agreement the provisions of the Renegotiation Act of 1948 shall not apply to any of the receipts or accruals for such fiscal year.
(d)Suspension of Certain Profit Limitations.—Notwithstanding any agreement to the contrary, the profit-limitation provisions [34 U. S. C. §§ 494–497](/us/usc/t34/s494/497–497).of the Act of March 27, 1934 (48 Stat. 503, 505), as amended and supplemented, and of section 505
(b)of the Merchant Marine Act, [49 Stat. 1996](/us/stat/49/1996).1936, as amended and supplemented (46 U. S. C. 1155 (b)), shall not apply, in the case of such Act of March 27, 1934, to any contract or subcontract if any of the receipts or accruals therefrom are subject to [49 Stat. 1985](/us/stat/49/1985).[46 U. S. C. § 1245; Sup. IV, § 1111 *et seq*](/us/usc/t46/s1245/1111).this title, and, in the case of the Merchant Marine Act, 1936, to any contract or subcontract entered into after December 31, 1950, if any of the receipts or accruals therefrom are subject to this title. SEC. 103. DEFINITIONS. For the purposes of this title—
(a)Department.—The term “Department” means the Department of Defense, the Department of the Army, the Department of the Navy, the Department of the Air Force, the Department of Commerce, the General Services Administration, the Atomic Energy Commission, the Reconstruction Finance Corporation, the Canal Zone Government, the Panama Canal Company, the Housing and Home Finance Agency, and such other agencies of the Government exercising functions having a direct and immediate connection with the national defense as the President shall designate. 65 Stat. 9
(b)Secretary.—The term “Secretary” means the Secretary of Defense, the Secretary of the Army, the Secretary of the Navy, the Secretary of the Air Force, the Secretary of Commerce, the Administrator of General Services, the Atomic Energy Commission, the Board of Directors of the Reconstruction Finance Corporation, the Governor of the Canal Zone, the president of the Panama Canal Company, the Housing and Home Finance Administrator, and the head of any other agency of the Government which the President shall designate pursuant to subsection
(a)of this section.
(c)Board.—The term “Board” means the Renegotiation Board*Post*, p. 19. created by section 107
(a)of this Act.
(d)Renegotiate and Renegotiation.—The terms “renegotiate” and “renegotiation” include a determination by agreement or order under this title of the amount of any excessive profits.
(e)Excessive Profits.—The term “excessive profits” means the portion of the profits derived from contracts with the Departments and subcontracts which is determined in accordance with this title to be excessive. In determining excessive profits favorable recognition must be given to the efficiency of the contractor or subcontractor, with particular regard to attainment of quantity and quality production, reduction of costs, and economy in the use of materials, facilities, and manpower; and in addition, there shall be taken into consideration the following factors:
(1)Reasonableness of costs and profits, with particular regard to volume of production, normal earnings, and comparison of war and peacetime products;
(2)The net worth, with particular regard to the amount and source of public and private capital employed;
(3)Extent of risk assumed, including the risk incident to reasonable pricing policies;
(4)Nature and extent of contribution to the defense effort, including inventive and developmental contribution and cooperation with the Government and other contactors in supplying technical assistance;
(5)Character of business, including source and nature of materials, complexity of manufacturing technique, character and extent of subcontracting, and rate of turnover;
(6)Such other factors the consideration of which the public interest and fair and equitable dealing may require, which factors shall be published in the regulations of the Board from time to time as adopted.
(f)Profits Derived From Contracts With the Departments and Subcontracts.—The term “profits derived from contracts with the Departments and subcontracts” means the excess of the amount received or accrued under such contracts and subcontracts over the costs paid or incurred with respect thereto and determined to be allocable thereto. All items estimated to be allowed as deductions and exclusions under chapter 1 of the Internal Revenue Code (excluding[63 Stat. 4](/us/stat/63/4).[26 U.S. C. § 1 *et seq*.; Sup. IV, § 3 *et seq*](/us/usc/t26/s1/3). taxes measured by income) shall, to the extent allocable to such contracts and subcontracts, be allowed as items of cost, except that no amount shall be allowed as an item of cost by reason of the application of a carryover or carry-back. Notwithstanding any other provision of this section, there shall be allowed as an item of cost in any fiscal year, subject to regulations of the Board, an amount equal to the excess, if any, of costs (computed without the application of this sentence) paid or incurred in the preceding fiscal year with respect to receipts or accruals subject to the provisions of this title over the 65 Stat. 10 amount of receipts or accruals subject to the provisions of this title which were received or accrued in such preceding fiscal year, but only to the extent that such excess did not result from gross inefficiency of the contractor or subcontractor. For the purposes of the preceding sentence, the term “preceding fiscal year” does not include any fiscal year ending prior to January 1, 1951. Costs shall be determined in accordance with the method of accounting regularly employed by the contractor or subcontractor in keeping his records, but, if no such method of accounting has been employed, or if the method so employed does not, in the opinion of the Board, or, upon redetermination, in the opinion of The Tax Court of the United States, properly reflect such costs, such costs shall be determined in accordance with such method as in the opinion of the Board, or, upon redetermination, in the opinion of The Tax Court of the United States, does properly reflect such costs. In determining the amount of excessive profits to be eliminated, proper adjustment shall be made on account of the taxes measured by income, other than Federal taxes, which are attributable to the portion of the profits which are not excessive.
(g)Subcontract.— The term “subcontract” means—
(1)any purchase order or agreement (including purchase orders or agreements antedating the related prime contract or higher tier subcontract) to perform all or any part of the work, or to make or furnish any materials, required for the performance of any other contract or subcontract, but such term does not include any purchase order or agreement to furnish office supplies;
(2)any contract or arrangement covering the right to use any patented or secret method, formula, or device for the performance of a contract or subcontract; and
(3)any contract or arrangement (other than a contract or arrangement between two contracting parties, one of whom is found by the Board to be a bona fide executive officer, partner, or full-time employee of the other contracting party) under which—
(A)any amount payable is contingent upon the procurement of a contract or contracts with a Department or of a subcontract or subcontracts; or
(B)any amount payable is determined with reference to the amount of a contract or contracts with a Department or of a subcontract or subcontracts; or
(C)any part of the services performed or to be performed consists of the soliciting, attempting to procure, or procuring a contract or contracts with a Department or a subcontract or subcontracts. Nothing in this subsection shall be construed
(i)to affect in any way the validity or construction of provisions in any contract with a Department or any subcontract, heretofore at any time or hereafter made, prohibiting the payment of contingent fees or commissions; or
(ii)to restrict in any way the authority of the Board to determine the nature or amount of selling expense under subcontracts, as defined in this subsection, as a proper element of the contract price or as a reimbursable item of cost, under a contract with a Department or a subcontract.
(h)Fiscal Year.—The term “fiscal year” means the taxable year[53 Stat. 4](/us/stat/53/4).[26 U. S. C. §. 1 *et seq*; Sup. IV. § 3 *et seq*](/us/usc/t26/s1/3).[53 Stat. 469](/us/stat/53/469).[26 U. S. C. § 3797
(a)(2)](/us/usc/t26/s3797/a/2). of the contractor or subcontractor under chapter 1 of the Internal Revenue Code, except that where any readjustment, of interests occurs in a partnership as defined in section 3797
(2)of such code, the 65 Stat. 11 fiscal year of the partnership er partnerships involved in such readjustment shall be determined in accordance with regulations prescribed by the Board.
(i)Received or Accrued and Paw or Incurred.—The terms “received or accrued” and “paid or incurred” shall be construed according to the method of accounting employed by the contractor or subcontractor in keeping his records, but if no such method of accounting has been employed, or if the method so employed does not, in the opinion of the Board, or, upon redetermination, in the opinion of The Tax Court of the United States, properly reflect his receipts or accruals or payments or obligations, such receipts or accruals or such payments or obligations shall be determined in accordance with such method as in the opinion of the Board, or, upon redetermination, in the opinion of The Tax Court of the United States, does properly reflect such receipts or accruals or such payments or obligations.
(j)Person.—The term “person” shall include an individual, firm, corporation, association, partnership, and any organized group of persons whether or not incorporated.
(k)Materials.—The term “materials” shall include raw materials, articles, commodities, parts, assemblies, products, machinery, equipment, supplies, components, technical data, processes, and other personal property.
(l)Agency of the Government.—The term “agency of the Government” means any part of the executive branch of the Government or any independent establishment of the Government or part thereof, including any department (whether or not a Department as defined in subsection
(a)of this section), any corporation wholly or partly owned by the United States which is an instrumentality of the United States, or any board, bureau, division, service, office, officer, employee, authority, administration, or other establishment of the Government which is not a part of the legislative or judicial branches. SEC. 104. RENEGOTIATION CLAUSE IN CONTRACTS. Subject to section 106
(a)the Secretary of each Department specifically*Post*, p. 17. named in section 103
(a)shall insert in each contract made by such Department thirty days or more after the date of the enactment of this Act, and the Secretary of each Department designated by the President under section 103
(a)shall insert in each contract made by such Department thirty days or more after the date of such designation, a provision under which the contractor agrees—
(1)to the elimination of excessive profits through renegotiation;
(2)that there may be withheld by the United States from amounts otherwise due the contractor, or that he will repay to the United States, if paid to him, any excessive profits;
(3)that he will insert in each subcontract described in section*Ante*, p. 10. 103
(g)a provision under which the subcontractor agrees—
(A)to the elimination of excessive profits through renegotiation;
(B)that there may be withheld by the contractor for the United States from amounts otherwise due to the subcontractor, or that the subcontractor will repay to the United States, if paid to him, any excessive profits;
(C)that the contractor shall be relieved of all liability to the subcontractor on account of any amount so withheld, or so repaid by the subcontractor to the United States;
(D)that he will insert in each subcontract described in 65 Stat. 12 section 103
(g)provisions corresponding to those of subparagraphs*Ante*, p. 10. (A), (B), and (C), and to those of this subparagraph;
(4)that there may be withheld by the United States from amounts otherwise due the contractor, or that he will repay to the United States, as the Secretary may direct, any amounts which *Post*, p. 13.under section 105
(C)the contractor is directed to withhold from a subcontractor and which are actually unpaid at the time the contractor receives such direction. The obligations assumed by the contractor or subcontractor under paragraph
(1)or
(3)(A), as the case may be, agreeing to the elimination of excessive profits through renegotiation shall be binding on him only if the contract or subcontract, as the case may be, is subject to this title. A provision inserted in a contract or subcontract, which recites in substance that the contract or subcontract shall be deemed to contain all the provisions required by this section shall be sufficient compliance with this section. Whether or not the provisions specified in this section are inserted in a contract with a Department or subcontract, to which this title is applicable, such contract or subcontract, as the case may be, shall be considered as having been made subject to this title in the same manner and to the same extent as if such provisions had been inserted. SEC. 105. RENEGOTIATION PROCEEDINGS.
(a)Proceedings Before the Board.—Renegotiation proceedingsNotice. shall be commenced by the mailing of notice to that effect, in such form as may be prescribed by regulation, by registered mail to the contractor or subcontractor. The Board shall endeavor to make an agreement with the Agreement with contractor, etc.contractor or subcontractor with respect to the elimination of excessive profits received or accrued, and with respect to such other matters relating thereto as the Board deems advisable. Any such agreement, if made, may, with the consent of the contractor or subcontractor, also include provisions with respect to the elimination of excessive profits likely to be received or accrued. If the Board does not make an agreement with respect to the elimination of excessive profits received or accrued, it shall issue and enter an order determining the amount, if any, of such excessive profits, and forthwith give notice thereof by registered mail to the contractor or subcontractor. In the absence of the filing of a petition with The Tax *Post*, p. 21.Court of the United States under the provisions of and within the lime limit prescribed in section 108, such order shall be final and conclusive and shall not be subject to review or redetermination by any court or other agency. The Board shall exercise its powers with respect to the aggregate of the amounts received or accrued during the fiscal year (or such other period as may be fixed by mutual agreement) by a contractor or subcontractor under contracts with the Departments and subcontracts, and not separately with respect to amounts received or accrued under separate contracts with the Departments or subcontracts, except that the Board may exercise such powers separately with respect to amounts received or accrued by the contractor or subcontractor under any one or more separate contracts with the Departments or subcontracts at the request of the contractor or subcontractor. By agreement with any contractor or subcontractor, and pursuant to regulations promulgated by it, the Board may in its discretion conduct renegotiation on a consolidated basis in order properly to reflect excessive profits of two or more related contractors or subcontractors. Renegotiation shall be conducted on a consolidated 65 Stat. 13 basis with a parent and its subsidiary corporations which constitute an affiliated group under section 141
(d)of the Internal Revenue Code[53 Stat. 59](/us/stat/53/59).[26 U. S. C. Sup. IV, § 141 (d)](/us/usc/t26/s141/d). if all of the corporations included in such affiliated group request renegotiation on such basis and consent to such regulations as the Board shall prescribe with respect to
(1)the determination and elimination of excessive profits of such affiliated group, and
(2)the determination of the amount of the excessive profits of such affiliated group allocable, for the purposes of section 3806 of the Internal Revenue Code, to each corporation included in such affiliated group. Whenever[56 Stat. 964](/us/stat/56/964).[26 U. S. C. § 3806](/us/usc/t26/s3806). the Board makes a determination with respect to the amount of excessive profits, and such determination is made by order, it shall, at the request of the contractor or subcontractor, as the case may be, prepare and furnish such contractor or subcontractor with a statement of such determination, of the facts used as a basis therefor, and of its reasons for such determination. Such statement shall not be used in The Tax Court of the United States as proof of the facts or conclusions stated therein.
(b)Methods or Eliminating Excessive Profits.—
(1)In general.— Upon the making of an agreement, or the entry of an order, under subsection
(a)of this section by the Board, or the entry of an order under section 108 by The Tax*Post*, p. 21. Court of the United States, determining excessive profits, the Board shall forthwith authorize and direct the Secretaries or any of them to eliminate such excessive profits—
(A)by reductions in the amounts otherwise payable to the contractor under contracts with the Departments, or by other revision of their terms;
(B)by withholding from amounts otherwise due to the contractor any amount of such excessive profits;
(C)by directing any person having a contract with any agency of the Government, or any subcontractor thereunder, to withhold for the account of the United States from any amounts otherwise due from such person or such subcontractor to a contractor, or subcontractor, having excessive profits to be eliminated, and every such person or subcontractor receiving such direction shall withhold and pay over to the United States the amounts so required to be withheld:
(D)by recovery from the contractor or subcontractor, or from any person or subcontractor directed under subparagraph
(C)to withhold for the account of the United States, through payment, repayment, credit, or suit any amount of such excessive profits realized by the contractor or subcontractor or directed under subparagraph
(C)to be withheld for the account of the United States; or
(E)by any combination of these methods, as is deemed desirable.
(2)Interest.— Interest at the rate of 4 per centum per annum shall accrue and be paid on the amount of such excessive profits from the thirtieth day after the date of the order of the Board or from the date fixed for repayment by the agreement with the contractor or subcontractor to the date of repayment, and on amounts required to be withheld by any person or subcontractor for the account of the United States pursuant to paragraph
(1)(C), from the date payment is demanded by the Secretaries or any of them to the date of payment. When The Tax Court of the*Post*, p. 21. United States, under section 108, redetermines the amount of 65 Stat. 14 excessive profits received or accrued by a contractor or subcontractor, interest at the rate of 4 per centum per annum shall accrue and be paid by such contractor or subcontractor as follows:
(A)When the amount of excessive profits determined by the Tax Court is greater than the amount determined by the Board, interest snail accrue and be paid on the amount determined by the Board from the thirtieth day after the date of the order of the Board to the date of repayment and, in addition thereto, interest shall accrue and be paid on the additional amount determined by the Tax Court from the date of its order determining such excessive profits to the date of repayment.
(B)When the amount of excessive profits determined by the Tax Court is equal to the amount determined by the Board, interest shall accrue and be paid on such amount from the thirtieth day after the date of the order of the Board to the date of repayment.
(C)When the amount of excessive profits determined by the Tax Court is less than the amount determined by the Board, interest shall accrue and be paid on such lesser amount from the thirtieth day after the date of the order of the Board to the date of repayment, except that no interest shall accrue or be payable on such lesser amount if such lesser amount is not in excess of an amount which the contractor or subcontractor tendered in payment prior to the issuance of the order of the Board. Notwithstanding the provisions of this paragraph, no interest shall accrue after three years from the date of filing a petition *Post*, p. 21.with the Tax Court pursuant to section 108 of this title in any case in which there has not been a final determination by the Tax Court with respect to such petition within such three-year period.
(3)Suits for recovery.—Actions on behalf of the United States may be brought in the appropriate courts of the United States to recover,
(A)from the contractor or subcontractor, any amount of such excessive profits and accrued interest not withheld or eliminated by some other method under this subsection, and
(B)from any person or subcontractor who has been directed under paragraph
(C)of this subsection to withhold for the account of the United States, the amounts required to be withheld under such paragraph, together with accrued interest thereon.
(4)Sureties.—The surety under a contract or subcontract shall not be liable for the repayment of any excessive profits thereon.
(5)Assignees.—Nothing herein contained shall be construed
(A)to authorize any Department or agency of the Government, except to the extent provided in the Assignment of Claims Act of [54 Stat. 1029](/us/stat/54/1029).[31 U. S. C. § 203; Sup. IV, § 203](/us/usc/t31/s203); [41 U. S. C. § 15](/us/usc/t41/s15).1940, as now or hereafter amended, to withhold from any assignee referred, to in said Act, any moneys due or to become due, or to recover any moneys paid, to such assignee under any contract with any Department or agency where such moneys have been assigned pursuant to such Act, or
(B)to authorize any Department or agency of the Government to direct the withholding pursuant to this Act, or to recover pursuant to this Act, from any bank, trust company or other financing institution (including any Federal lending agency) which is an assignee under any subcontract, any moneys due or to become due or paid to any such assignee under such subcontract. 65 Stat. 15
(6)Indemnification.—Each person is hereby indemnified by the United States against all claims on account of amounts withheld by such person pursuant to this subsection from a contractor or subcontractor and paid over to the United States.
(7)Treatment of recoveries.—All money recovered by way of repayment or suit under this subsection shall be covered into the Treasury as miscellaneous receipts. Upon the withholding of any amount of excessive profits or the crediting of any amount of excessive profits against amounts otherwise due a contractor from appropriations from the Treasury, the Secretary shall certify the amount thereof to the Treasury and the appropriations of his Department shall be reduced by an amount equal to the amount so withheld or credited. The amount of such reductions shall be transferred to the surplus fund of the Treasury.
(8)Credit for taxes paid.—In eliminating excessive profits, the Secretary shall allow the contractor or subcontractor credit for Federal income and excess profits taxes as provided in section 3806[56 Stat. 964](/us/stat/56/964).[26 U. S. C. § 3806](/us/usc/t26/s3806). of the Internal Revenue Code.
(c)Periods of Limitations.—No proceeding to determine the amount of excessive profits for any fiscal year shall be commenced more than one year after the statement required under subsection
(1)of this section is filed with the Board with respect to such year, and, if such proceeding is not commenced prior to the expiration of one year following the date upon which such statement is so filed, all liabilities of the contractor or subcontractor for excessive profits received or accrued during such fiscal year shall thereupon be discharged. If an agreement or order determining the amount of excessive profits is not made within two years following the commencement of the renegotiation proceeding, then upon the expiration of such two years all liabilities of the contractor or subcontractor for excessive profits with respect to which such proceeding was commenced shall thereupon be discharged, except that
(1)if an order is made within such two years pursuant to a delegation of authority under subsection
(d)of section 107, such two-year limitation shall not apply to review*Post*, p. 20. of such order by the Board, and
(2)such two-year period may be extended by mutual agreement.
(d)Agreements to Eliminate Excessive Profits.—For the purposes of this title the Board may make final or other agreements with a contractor or subcontractor for the elimination of excessive profits and for the discharge of any liability for excessive profits under this title. Such agreements may contain such terms and conditions as the Board deems advisable. Any such agreement shall be conclusive according to its terms; and, except upon a showing of fraud or malfeasance or a willful misrepresentation of a material fact,
(1)such agreement shall not for the purposes of this title be reopened as to the matters agreed upon, and shall not be modified by any officer, employee, or agent of the United States, and
(2)such agreement and any determination made in accordance therewith shall not be annulled, modified, set aside, or disregarded in any suit, action, or proceeding. Notwithstanding any other provision of this title, however, the Board shall have the power, pursuant to regulations promulgated by it, to modify any agreement or order for the purpose of extending the time for payment of sums due under such agreement or order.
(e)Information Available To Board.—
(1)Furnishing of financial statements, etc.—Every person who holds contracts or subcontracts, to which the provisions of 65 Stat. 16 this title are applicable, shall, in such form and detail as the Board may by regulations prescribe, file with the Board, on or before the first day of the fourth calendar month following the close of his fiscal year, a financial statement setting forth such information as the Board may by regulations prescribe as necessary to Penalty.carry out this title. In addition to the statement required under the preceding sentence, every such person shall, at such time or times and in such form and detail as the Board may by regulations prescribe, furnish the Board any information, records, or data which are determined by the Board to be necessary to carry out this title. Any person who willfully fails or refuses to furnish any statement, information, records, or data required of him under this subsection, or who knowingly furnishes any such statement, information, records, or data containing information which is false or misleading in any material respect, shall, upon conviction thereof, be punished by a fine of not more than $10,000 or imprisonment for not more than one year, or both.
(2)Audit of books and records.—For the purpose of this title, the Board shall have the right to audit the books and records of any contractor or subcontractor subject to this title. In the interest of economy and the avoidance of duplication of inspection and audit, the services of the Bureau of Internal Revenue shall, upon request of the Board and the approval of the Secretary of the Treasury, be made available to the extent determined by the Secretary of the Treasury for the purpose of making examinations and audits under this title.
(f)Minimum Amounts Subject to Renegotiation.—
(1)In general.—If the aggregate of the amounts received or accrued during a fiscal year (and on or after the applicable *Ante*, p. 7.effective date specified in section 102 (a)) by a contractor or subcontractor, and all persons under control of or controlling or under common control with the contractor or subcontractor, under contracts with the Departments and subcontracts described in section *Ante*, p. 10.103
(1)and (2), is not more than $250,000, the receipts or accruals from such contracts and subcontracts shall not, for such fiscal year, be renegotiated under this title. If the aggregate of such amounts received or accrued during the fiscal year under such contracts and subcontracts is more than $250,000, no determination of excessive profits to be eliminated for such year with respect to such contracts and subcontracts shall be in an amount greater than the amount by which such aggregate exceeds $250,000.
(2)Subcontracts described in section 103
(g)(3).—If the*Ante*, p. 10. aggregate of the amounts received or accrued during a fiscal year (and on or after the applicable effective date specified in section *Ante*, p. 7.102 (a)) by a subcontractor, and all persons under control of or controlling or under common control with the subcontractor, under subcontracts described in section 103
(3)is not more than $25,000, the receipts or accruals from such subcontracts shall not, for such fiscal year, be renegotiated under this title. If the aggregate of such amounts received or accrued during the fiscal year under such subcontracts is more than $25,000, no determination of excessive profits to be eliminated for such year with respect to such subcontracts shall be in an amount greater than the amount by which such aggregate exceeds $25,000.
(3)Computation.—In computing the aggregate of the amounts received or accrued during any fiscal year for the purposes of 65 Stat. 17 paragraphs
(1)and
(2)of this subsection, there shall be eliminated all amounts received or accrued by a contractor or subcontractor from all persons under control of or controlling or under common control with the contractor or subcontractor and all amounts received or accrued by each such person from such contractor or subcontractor and from each other such person. If the fiscal year is a fractional part of twelve months, the $250,000 amount and the $25,000 amount shall be reduced to the same fractional part thereof for the purposes of paragraphs
(1)and (2). In the case of a fiscal year beginning in 1950 and ending in 1951, the $250,000 amount and the $25,000 amount shall be reduced to an amount which bears the same ratio to $250,000 or $25,000, as the case may be, as the number of days in such fiscal year after December 31, 1950, bears to 365, but this sentence shall have no application if the contractor or subcontractor has made an agreement with the Board pursuant to section 102
(c)for the application of the provisions*Ante*, p. 8. of this title to receipts or accruals prior to January 1, 1951, during such fiscal year. SEC. 106. EXEMPTIONS.
(a)Mandatory Exemptions.— The provisions of this title shall not apply to—
(1)any contract by a Department with any Territory, possession, or State, or any agency or political subdivision thereof, or with any foreign government or any agency thereof; or
(2)any contract or subcontract for an agricultural commodity in its raw or natural state, or if the commodity is not customarily sold or has not an established market in its raw or natural state, in the first form or state, beyond the raw or natural state, in which it is customarily sold or in which it has an established market. The term “agricultural commodity” as used herein shall includeAgricultural commodity. but shall not be limited to—
(A)commodities resulting from the cultivation of the soil such as grains of all kinds, fruits, nuts, vegetables, hay, straw, cotton, tobacco, sugarcane, and sugar beets;
(B)natural resins, saps, and gums of trees;
(C)animals, such as cattle, hogs, poultry, and sheep, fish and other marine life, and the produce of live animals, such as wool, eggs, milk and cream; or
(3)any contract or subcontract for the product of a mine, oil or gas well, or other mineral or natural deposit, or timber, which has not been processed, refined, or treated beyond the first form or state suitable for industrial use; or
(4)any contract or subcontract with a common carrier for transportation, or with a public utility for gas, electric energy, water, communications, or transportation, when made in either case at rates not in excess of published rates or charges filed with, fixed, approved, or regulated by a public regulatory body, State, Federal, or local, or at rates not in excess of unregulated rates of such a public utility which are substantially as favorable to users and consumers as are regulated rates. In the case of the furnishing[54 Stat. 929](/us/stat/54/929).[49 U. S. C. § 901; Sup. IV, § 903 *et seq*](/us/usc/t49/s901/903). or sale of transportation by common carrier by water, this paragraph shall apply only to such furnishing or sale which is subject to the jurisdiction of the Interstate Commerce Commission under Part III of the Interstate Commerce Act or subject to the jurisdiction[47 Stat. 1426](/us/stat/47/1426).[46 U. S. C. § 848](/us/usc/t46/s848). of the Federal Maritime Board under the Intercoastal Shipping Act, 1933; or 65 Stat. 18
(5)any contract or subcontract with an organization exempt from taxation under section 101
(6)of the Internal Revenue [53 Stat. 33](/us/stat/53/33); [64 Stat. 948](/us/stat/64/948).[26 U. S. C., Sup. IV, §§ 101 (6), 422](/us/usc/t26/s101/6/422).Code, but only if the income from such contract or subcontract is not includible under section 422 of such code in computing the unrelated business net income of such organization; or
(6)any contract which the Board determines does not have a direct and immediate connection with the national defense. The Board shall prescribe regulations designating those classes and types of contracts which shall be exempt under this paragraph; and the Board shall, in accordance with regulations prescribed by it, exempt any individual contract not falling within any such class or type if it determines that such contract does not nave a direct and immediate connection with the national defense. *Post*. p. 21Notwithstanding section 108 of this title, regulations prescribed by the Board under this paragraph, and any determination of the Board that a contract is or is not exempt under this paragraph, shall not be reviewed or redetermined by the Tax Court or by any other court or agency; or
(7)any subcontract directly or indirectly under a contract or subcontract to which this title does not apply by reason of this subsection.
(b)Cost Allowance.—In the ease of a contractor or subcontractor who produces or acquires the product of a mine, oil or gas well, or other mineral or natural deposit, or timber, and processes, refines, or treats such a product to and beyond the first form or state suitable for industrial use, or who produces or acquires an agricultural product and processes, refines, or treats such a product to and beyond the first form or state in which it is customarily sold or in which it has an established market, the Board shall prescribe such regulations as may be necessary to give such contractor or subcontractor a cost allowance substantially equivalent to the amount which would have been realized by such contractor or subcontractor if he had sold such product at such first form or state. Notwithstanding any other provisions of this title, there shall be excluded from, consideration in determining whether or not a contractor or subcontractor has received or accrued excessive profits that portion of the profits, derived from receipts and accruals subject to the provisions of this title, attributable to the ‘Excess inventory.”increment in value of the excess inventory. For the purposes of this subsection the term “excess inventory” means inventory of products, hereinbefore described in this subsection, acquired by the contractor or subcontractor in the form or at the state in which contracts for such products on hand or on contract would be exempted from this title by subsection
(2)or
(3)of this section, which is in excess of the inventory reasonably necessary to fulfill existing contracts or orders. That portion of the profits, derived from receipts and accruals subject to the provisions of this title, attributable to the increment in value of the excess inventory, and the method of excluding such portion of profits from consideration in determining whether or not the contractor or subcontractor has received or accrued excessive profits, shall be determined in accordance with regulations prescribed by the Board.
(c)Partial Mandatory Exemption for Durable Productive equipment.—
(1)In general.—The provisions of this title shall not apply to receipts or accruals (other than rents) from subcontracts for new durable productive equipment, except to that part of such 65 Stat. 19 receipts or accruals which bears the same ratio to the total of such receipts or accruals as five years bears to the average useful life of such equipment as set forth in Bulletin F of the Bureau of Internal Revenue (1942 edition) or, if an average useful life is not so set forth, then as estimated by the Board.
(2)Definitions.— For the purpose of this subsection—
(A)the term “durable productive equipment” means machinery, tools, or other equipment which does not become a part of an end product acquired by any agency of the Government under a contract with a department, or of an article incorporated therein, and which has an average useful life of more than five years; and
(B)the term “subcontracts for new durable productive equipment” does not include subcontracts where the purchaser of such durable productive equipment has acquired such equipment for the account of the Government, but includes pool orders and similar commitments placed in the first instance by a Department or other agency of the Government when title to the equipment is transferred on delivery thereof or within one year thereafter to a contractor or subcontractor.
(d)Permissive Exemptions.— The Board is authorized, in its discretion, to exempt from some or all of the provisions of this title—
(1)any contract or subcontract to be performed outside of the territorial limits of the continental United States or in Alaska;
(2)any contracts or subcontracts under which, in the opinion of the Board, the profits can be determined with reasonable certainty when the contract price is established, such as certain classes of
(A)agreements for personal services or for the purchase of real property, perishable goods, or commodities the minimum price for the sale of which has been fixed by a public regulatory body,
(B)leases and license agreements, and
(C)agreements where the period of performance under such contract or subcontract will not be in excess of thirty days.
(3)any contract or subcontract or performance thereunder during a specified period or periods if. in the opinion of the Board, the provisions of the contract are otherwise adequate to prevent excessive profits;
(4)any contract or subcontract the renegotiation of which would jeopardize secrecy required in the public interest;
(5)any subcontract or group of subcontracts not otherwise exempt from the provisions of this section, if, in the opinion of the Board, it is not administratively feasible in the case of such subcontract or in the case of such group of subcontracts to determine and segregate the profits attributable to such subcontract or group of subcontracts from the profits attributable to activities not subject to renegotiation. The Board may so exempt contracts and subcontracts both individually and by general classes or types. SEC 107. RENEGOTIATION BOARD.
(a)Creation of Board.—There is hereby created, as an independent establishment in the executive branch of the Government, a Renegotiation Board to be composed of five members to be appointed by the President, by and with the advice and consent of the Senate. The Secretaries of the Army, the Navy, and the Air Force, respectively, subject to the approval of the Secretary of Defense, and the Administrator of General Services shall each recommend to the President, for his consideration, one person from civilian life to serve as a member of the Board. The President shall, at the time of appointment,Chairman. designate one member to serve as Chairman. The Chairman 65 Stat. 20 shall receive compensation at the rate of $17,500 per annum, and the other members shall receive compensation at the rate of $15,000 per annum. No member shall actively engage in any business, vocation, Seal.or employment other than as a member of the Board. The Board shall have a seal which shall be judicially noticed.
(b)Places of Meetings and Quorum.—The principal office of the Board shall be in the District of Columbia, but it or any division thereof may meet and exercise its powers at any other place. The Board may establish such number of offices as it deems necessary to expedite the work of the Board. Three members of the Board shall constitute a quorum, and any power, function, or duty of the Board may be exercised or performed by a majority of the members present if the members present constitute at least a quorum.
(c)Personnel.—The Board is authorized, subject to the [63 Stat. 954](/us/stat/63/954).[5 U. S. C., Sup. IV, § 1071 note](/us/usc/t5/s1071).Classification Act of 1949 (but without regard to the civil-service laws and regulations), to employ and fix the compensation of such officers and employees as it deems necessary to assist it in carrying out its duties under this title. The Board may, with the consent of the head of the agency of the Government concerned, utilize the services of any officers or employees of the United States, and reimburse such agency for the services so utilized. Officers or employees whose services are so utilized shall not receive additional compensation for such services, but shall be allowed and paid necessary travel expenses and a per diem in lieu of subsistence in accordance with the Standardized Government Travel Regulations while away from their homes or official station on duties of the Board.
(d)Delegation of Powers.—The Board may delegate in whole or in part any function, power, or duty (other than its power to promulgate regulations and rules and other than its power to grant *Ante*, p. 19.permissive exemptions under section 106 (d)) to any agency of the Government, including any such agency established by the Board, and may authorize the successive redelegation, within limits specified by it, of any such function, power, or duty to any agency of the Government, including any such agency established by the Board. But no function, power, or duty shall be delegated or redelegated to any person pursuant to this subsection or subsection
(f)unless the Board has determined that such person (other than the Secretary of a Department) is responsible directly to the Board or to the person making such delegation or redelegation and is not engaged on behalf of any Department in the making of contracts for the procurement of supplies or services, or in the supervision of such activity; and any delegation or redelegation of any function, power, or duty pursuant to this subsection or subsection
(f)shall be revoked by the person making such delegation or redelegation (or by the Board if made by it) if the Board shall at any time thereafter determine that the person (other than the Secretary of a Department) to whom has been delegated or redelegated such function, power, or duty is not responsible directly to the Board or to the person making such delegation or redelegation or is engaged on behalf of any Department in the making of contracts for the procurement of supplies or services, or in the supervision of such activity.
(e)Organization and Operation of Board.—The Chairman of the Board may from time to time divide the Board into divisions of one or more members, assign the members of the Board thereto, and in case of a division of more than one member, designate the chief thereof. The Board may also, by regulations or otherwise, determine the character of cases to be conducted initially by the Board through an officer or officers of, or utilized by, the Board, the character of cases to be conducted initially by the various agencies of the Government 65 Stat. 21 authorized to exercise powers of the Board pursuant to subsection
(d)of this section, the character of cases to be conducted initially by the various divisions of the Board, and the character of cases to be conducted initially by the Board itself. The Board may review any determination in any case not initially conducted by it, on its own motion or, in its discretion, at the request of any contractor or subcontractor aggrieved thereby. Unless the Board upon its own motion initiates a review of such determination within ninety days from the date of such determination, or at the request of the contractor or subcontractor made within ninety days from the date of such determination initiates a review of such determination within ninety days from the date of such request, such determination shall be deemed the determination of the Board. If such determination was made by an order with respect to which notice thereof was given by registered mail pursuant to section 105 (a), the Board shall give notice by registered*Ante*, p. 12. mail to the contractor or subcontractor of its decision not to review the case. If the Board reviews any determination in any case not initially conducted by it and does not make an agreement with the contractor or subcontractor with respect to the elimination of excessive profits, it shall issue and enter an order under section 105
(a)determining the amount, if any, of excessive profits, and forthwith give notice thereof by registered mail to the contractor or subcontractor. The amount of excessive profits so determined upon review may be less than, equal to, or greater than, that determined by the agency of the Government whose action is so reviewed.
(f)Delegation of Renegotiation Functions to Board.—The Board is hereby authorized and directed to accept and perform such renegotiation powers, duties, and functions as may be delegated to it under any other law requiring or permitting renegotiation, and the Board is further authorized to redelegate any such power, duty, or function to any agency of the Government and to authorize successive redelegations thereof, within limits specified by the Board. Notwithstanding any other provision of law, the Secretary of Defense isPowers, etc., of Secretary of Defense. hereby authorized to delegate to the Board, in whole or in part, the powers, functions, and duties conferred upon him by any other renegotiation law. SEC 108. REVIEW BY THE TAX COURT. Any contractor or subcontractor aggrieved by an order of the Board determining the amount of excessive profits received or accrued by such contractor or subcontractor may—
(a)if the case was conducted initially by the Board itself—within ninety days (not counting Sunday or a legal holiday in the District of Columbia as the last day) after the mailing under section 105
(a)of the notice of such order, or*Ante*, p. 12.
(b)if the case was not conducted initially by the Board itself—within ninety days (not counting Sunday or a legal holiday in the District of Columbia as the last day) after the mailing under section 107
(e)of the notice of the decision of the Board not to review the case or the notice of the order of the Board determining the amount of excessive profits, file a petition with The Tax Court of the United States for a redetermination thereof. Upon such filing such court shall have exclusive jurisdiction, by order, to finally determine the amount, if any, of such excessive profits received or accrued by the contractor or subcontractor, and such determination shall not be reviewed or redetermined by any court or agency. The court may determine as the amount of excessive profits an amount either less than, equal to, or greater than that determined by the Board. A proceeding before the Tax Court to finally determine the amount, if any, of excessive profits shall not 65 Stat. 22 be treated as a proceeding to review the determination of the Board, but shall be treated as a proceeding de novo. For the purposes of this section the court shall have the same powers and duties, insofar as applicable in respect of the contractor, the subcontractor, the Board, and the Secretary, and in respect of the attendance of witnesses and the production of papers, notice of hearings, hearings before divisions, review by the Tax Court of decisions of divisions, stenographic reporting, and reports of proceedings, as such court has under sections 1110, 1111, 1113, 1114, 1115 (a), 1116, 1117 (a), 1118, 1120, and 1121 [53 Stat. 180–162](/us/stat/53/180–162).[26 U. S. C. §§ 1110–1121; Sup. IV. §§ 1111](/us/usc/t26/s1110–1121/1111).of the Internal Revenue Code in the case of a proceeding to redetermine a deficiency. In the case of any witness for the Board, the fees and mileage, and the expenses of taking any deposition shall be paid out of appropriations of the Board available for that purpose, and in the case of any other witnesses shall be paid, subject to rules prescribed by the court, by the party at whose instance the witness appears or the deposition is taken. The filing of a petition under this section shall operate to stay the execution of the order of the *Ante*, p. 13.Board under subsection
(b)of section 105 if within ten days after the filing of the petition the petitioner files with the Tax Court a good and sufficient bond, approved by such court, in such amount as may be fixed by the court. Any amount collected by the United States under an order of the Board in excess of the amount found to be due under a determination of excessive profits by the Tax Court shall be refunded to the contractor or subcontractor with interest thereon at the rate of 4 per centum per annum from the date of collection by the United States to the date of refund. SEC. 109. RULES AND REGULATIONS. The Board may make such rules, regulations, and orders as it deems necessary or appropriate to carry out the provisions of this title. SEC. 110. COMPLIANCE WITH REGULATIONS, ETC No person shall be held liable for damages or penalties for any act or failure to act resulting directly or indirectly from his compliance with a rule, regulation, or order issued pursuant to this title, Notwithstanding that any such rule, regulation, or order shall thereafter be declared by judicial or other competent authority to be invalid. SEC. 111. APPLICATION OF ADMINISTRATIVE PROCEDURE ACT. The functions exercised under this title shall be excluded from the [5 U. S. C. § 1001 note; Sup. IV, § 1001 (a)](/us/usc/t5/s1001/1001/a).operation of the Administrative Procedure Act (60 Stat. 237) except as to the requirements of section 3 thereof. SEC. 112. APPROPRIATIONS. There are hereby authorized to be appropriated such sums as may be necessary and appropriate for the carrying out of the provisions and purposes of this title. Funds made available for the purposes of this title may be allocated or transferred for any of the purposes of this title, with the approval of the Bureau of the Budget to any agency of the Government designated to assist in carrying out this title. Funds so allocated or transferred shall remain available for such period as may be specified in the Acts making such funds available. SEC 113. PROSECUTION OF CLAIMS AGAINST UNITED STATES BY FORMER PERSONNEL. Nothing in title 18, United States Code, sections 281 and 283, or in[62 Stat. 697](/us/stat/62/697).[18 U. S. C., Sup. IV, §§ 281, 283](/us/usc/t18/s281/283). section 190 of the Revised Statutes (U. S. C., title 5, sec. 99) shall be deemed to prevent any person by reason of service in a Department or the Board during the period (or a part thereof) beginning July 1, 1950, and ending December 31, 1953, from acting as counsel, agent, or attorney for prosecuting any claim against the United States: *Provided*, That such person shall not prosecute any claim against the 65 Stat. 23 United States
(1)involving any subject matter directly connected with which such person was so employed, or
(2)during the period such person is engaged in employment in a Department or the Board. TITLE II— MISCELLANEOUS PROVISIONS SEC. 201. FUNCTIONS UNDER WORLD WAR II RENEGOTIATION ACT.
(a)Abolition of War Contracts Price Adjustment Board.—The War Contracts Price Adjustment Board, created by the renegotiation[58 Stat. 90](/us/stat/58/90).[50 U. S. C. app. § 1191 (1); Sup. IV, § 1191 (j)](/us/usc/t50/s1191/1/1191/j). Act, is hereby abolished.
(b)Transfer of Functions in General.—All powers, functions, and duties conferred upon the War Contracts Price Adjustment Board by the Renegotiation Act and not otherwise specifically dealt with in this section are transferred to the Renegotiation Board.
(c)Amendment of the Renegotiation Act.—Subsection
(D)of the Renegotiation Act is amended by inserting at the end[58 Stat. 80](/us/stat/58/80).[50 U. S. C. app. § 1191
(4)(D)](/us/usc/t50/s1191/a/4/D). thereof the following: “A net renegotiation rebate shall not be repaid unless a claim therefor has been filed with the Board on or before the date of its abolition, or unless a claim shall have been filed with the Administrator of General Services
(i)on or before June 30, 1951, or
(ii)within ninety days after the making of an agreement or the entry of an order under subsection
(1)determining the amount of excessive[58 Stat. 82](/us/stat/58/82).[50 U. S. C. app. § 1191
(e)(1)](/us/usc/t50/s1191/e/1). profits, whichever is later. A claim shall be deemed to have been filed when received by the Board or the Administrator, whether or not accompanied by a statement of the Commissioner of Internal Revenue showing the amortization deduction allowed for the renegotiated year upon the recomputation made pursuant to section 124 (d)[54 Stat. 999](/us/stat/54/999).[26 U. S. C. § 124 (d)](/us/usc/t26/s124/d). of the Internal Revenue Code.”
(d)Transfer of Certain Functions.—All powers, functions, and duties conferred upon the War Contracts Price Adjustment Board by subsection
(D)of the Renegotiation Act, subject to the amendment[58 Stat. 80](/us/stat/58/80).[50 U. S. C. app. § 1191
(4)(D)](/us/usc/t50/s1191/a/4/D). thereof by subsection
(c)of this section, are hereby transferred to the Administrator of General Services.
(e)Functions and Records.—Each Secretary of a Department is authorized and directed to eliminate the excessive profits determined under all existing renegotiation agreements or orders by the methods enumerated in subsection
(2)of the Renegotiation Act in respect[58 Stat. 83](/us/stat/58/83).[50 U. S. C. app. § 1191
(c)(2)](/us/usc/t50/s1191/c/2). of all renegotiations conducted by his Department pursuant to delegations from the War Contracts Price Adjustment Board. The several Departments shall retain custody of the renegotiation case files covering renegotiations thus conducted for such time as the Secretary deems necessary for the purposes of this section, and thereafter they shall be made available to the Renegotiation Board for appropriate disposition. The renegotiation records of the War Contracts Price Adjustment Board shall become records of the Renegotiation Board on the effective date of this section.
(f)Refunds.—All refunds under subsection
(D)of the Renegotiation Act (relating to the recomputation of the amortization[58 Stat. 80, 89](/us/stat/58/80/89).[50 U. S. C. app. § 1191
(4)(D),
(i)(3)](/us/usc/t50/s1191/a/4/D/i/3). deduction), all refunds under the last sentence of subsection
(3)of such Act (relating to excess inventories), and all amounts finally adjudged or determined to have been erroneously collected by the United States pursuant to a determination of excessive profits, with interest thereon in the last mentioned case at a rate not to exceed 4 per centum per annum as may be determined by the Administrator of General Services or his duly authorized representative computed to the date of certification to the Treasury Department for payment, shall be certified by the Administrator of General Services or his duly authorized representative to the Treasury Department for payment from such appropriations as may be available therefor: *Provided*, 65 Stat. 24 That such refunds shall be based solely on the certificate of the Administrator of General Services or his duly authorized representative.
(g)Existing Policies, Procedures, Etc., To Remain in Effect.—All policies, procedures, directives, and delegations of authority prescribed or issued
(1)by the War Contracts Price Adjustment Board, or
(2)by any Secretary or other duly authorized officer of the Government,[38 Stat. 90](/us/stat/38/90).[50 U. S. C. app. § 1191 (f); Sup. IV, § 1191 (j)](/us/usc/t50/s1191/f/1191/j). under the authority of the Renegotiation Act, in effect upon the effective date of this section and not inconsistent herewith, shall remain in full force and effect unless and until superseded, or except as they may be amended, under the authority of this section or any other appropriate authority. All functions, powers, and responsibilities transferred by this section shall be accompanied by the authority to issue appropriate regulations and procedures, or to modify existing procedures, in respect of such powers, functions, and responsibilities.
(h)Savings Provision.—This section shall not be construed
(1)to prohibit disbursements authorized by the War Contracts Price Adjustment Board and certified pursuant to its authority prior to the effective date of this section,
(2)to affect the validity or finality of any agreement or order made or issued pursuant to law by the War contracts Price Adjustment Board or pursuant to delegations of authority from it. or
(3)to prejudice or to abate any action taken or any right accruing or accrued, or any suit or proceeding had or commenced in any civil cause; but any court having on its docket a case to which the War Contracts Price Adjustment Board is a party, on motion or supplemental petition filed at any time within twelve months after the effective date of this section, showing a necessity for the survival of such suit, action, or other proceeding to obtain a determination of the questions involved, may allow the same to be maintained by or against the United States.
(i)Renegotiation Act Not Repealed.—Except as by this Act specifically[58 Stat. 90](/us/stat/58/90).[50 U. S. C. app. § 1191 (f); Sup. IV, § 1191 (j)](/us/usc/t50/1191/f/1191/j). amended or modified, all provisions of the Renegotiation Act shall remain in full force and effect.
(j)Definitions.—The terms which are defined in the Renegotiation Act shall, when used in this section, have the same meaning as when used in the Renegotiation Act, except that where a renegotiation function has been transferred by or pursuant to law the terms “Secretary” or “Secretaries” and “Department” or “Departments” shall be understood to refer to the successors in function to those officers or offices specifically named in the Renegotiation Act.
(k)Effective Date of Section.—This section shall take effect sixty days after the date of the enactment of this Act. SEC. 202. PERIOD OF LIMITATIONS FOR RENEGOTIATION ACT OF 1948. No proceeding under the Renegotiation Act of 1948 to determine[62 Stat. 259](/us/stat/62/259).[50 U. S. C., Sup. IV, app. § 1193 (i)](/us/usc/t50/s1193/i). the amount of excessive profits for any fiscal year shall be commenced more than one year after the mandatory statement required by the regulations issued pursuant to such Act is filed with respect to such year, or more than six months after the date of the enactment of this title, whichever is the later, and if such proceeding is not so commenced (in the manner provided by the regulations prescribed pursuant to such Act), all liabilities of the contractor or subcontractor under such Act for excessive profits received or accrued during such fiscal year shall thereupon be discharged. If an agreement or order determining the amount of excessive profits under such Act is not made within two years following the commencement of the Renegotiation proceeding, then upon the expiration of such two years all liabilities of the contractor or subcontractor for excessive profits with respect to which such proceeding was commenced shall thereupon be discharged, except that
(1)such two-year period may be extended by mutual agreement, and
(2)if within such two years such an order 65 Stat. 25 is duly issued pursuant to such Act, such two-year limitation shall not apply to the review of such order by any renegotiation board duly authorized to undertake such review. SEC 203. AMENDMENT OF SECTION 3806 OF THE INTERNAL REVENUE CODE. Section 3806
(1)of the Internal Revenue Code is hereby[56 Stat. 965](/us/stat/56/965).[26 U. S. C. § 3806
(1)(A), (B), (C)](/us/usc/t26/s3806/a/1/A/B/C). amended by striking out subparagraphs (A), (B), and
(C)and inserting in lieu thereof the following: " “(A) The term ‘renegotiation’ includes any transaction which is a renegotiation within the meaning of the Federal renegotiation act applicable to such transaction, any modification of one or more contracts with the United States or any agency thereof, and any agreement with the United States or any agency thereof in respect of one or more such contracts or subcontracts thereunder. “(B) The term ‘excessive profits’ includes any amount which constitutes excessive profits within the meaning assigned to such term by the applicable Federal renegotiation act, any part of the contract price of a contract with the United States or any agency thereof, any part of the subcontract price of a subcontract under such a contract, and any profits derived from one or more such contracts or subcontracts. “(C) The term ‘subcontract’ includes any purchase order or agreement which is a subcontract within the meaning assigned to such term by the applicable Federal renegotiation act. “(D) The term ‘Federal renegotiation act’ includes section 403 of the Sixth Supplemental National Defense Appropriation Act (Public 528, 77th Cong., 2d Sess.), as amended or[56 Stat. 246](/us/stat/56/246); [62 Stat. 259](/us/stat/62/259).[50 U. S. C. app. § 1191; Sup. IV. §§ 1191 (j), 1193 (i)](/us/usc/t50/s1191/1191/j/1193/i). supplemented, the Renegotiation Act of 1948, as amended or supplemented, and the Renegotiation Act of 1951, as amended or supplemented.” " SEC. 204. SEPARABILITY PROVISION. If any provision of this Act or the application of any provision to any person or circumstance is held invalid, the validity of the remainder of the Act and of the application of its provisions to other persons and circumstances shall not be affected thereby. Approved March 23, 1951. Public Law 10: To amend and extend the provisions of the District of Columbia Emergency Rent Act, as amended. Public Law 10 Public Law 10 65 Stat. 25 1951-03-23 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2026-01-19 82 1 public Public Law 10 chapter 16 JOINT RESOLUTION To amend and extend the provisions of the District of Columbia Emergency Rent Act, as amended.March 23, 1951[[H. J. Res. 173](/us/bill/82/hjres/173)] *Resolved by the Senate and House of Representatives of the United States of America in Congress assembled*, That section 1
(b)of the District of Columbia Emergency Rent Act, as amended (D. C. Code, 1940 edition, sec. 45–1601 (b)), is hereby amended by striking out[64 Stat. 1115](/us/stat/64/1115). “March 31, 1951” and inserting in lieu thereof “June 30, 1951”. Approved March 23, 1951. Public Law 11: Making additional appropriations for the District of Columbia for the fiscal year 1951, and for other purposes. Public Law 11 Public Law 11 65 Stat. 26 1951-03-24 United States Government Publishing Office text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Digitization Vendor 2026-01-19 82 1 public
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- /statutes-at-large/vol-65/public-law-3Public Law 3
- making appropriations for the naval service for the fiscal year ending June 30, 1883, and for other purposes”, approved August 5, 1882 (22 Stat. 296), is hereby amended by inserting[22 Stat. 296](/us/stat/22/296). before the period at the end of the fourth sentence thereof the following: “ *ProvidedPublic Law 627
- /statutes-at-large/vol-65/public-law-11Public Law 11
74 references not yet in our index
- 63 Stat. 714
- 34 USC 491
- 57 Stat. 604
- 56 Stat. 655
- 55 Stat. 197
- 57 Stat. 92
- 65 Stat. 5
- 65 Stat. 6717
- 64 Stat. 464
- 43 Stat. 162
- 8 USC 213
- 43 Stat. 155
- 8 USC 204
- 65 Stat. 6
- 64 Stat. 596
- 64 Stat. 595
- 64 Stat. 598
- 65 Stat. 7
- 61 Stat. 199
- 65 Stat. 8
- 62 Stat. 259
- 34 USC 494–497
- 48 Stat. 503
- 49 Stat. 1996
- 46 USC 1155
- 49 Stat. 1985
- 46 USC 1245
- 65 Stat. 9
- 63 Stat. 4
- 65 Stat. 10
- 53 Stat. 4
- 53 Stat. 469
- 26 USC 3797
- 65 Stat. 11
- 65 Stat. 12
- 65 Stat. 13
- 53 Stat. 59
- 56 Stat. 964
- 26 USC 3806
- 65 Stat. 14
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