PUBLIC LAW 93-421, 88 STAT 1154.
BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESNTATIVES OF THE UNITED
STATES OF AMERICA IN CONGRESS ASSEMBLED, //48 USC 14210.// THAT THE
SECRETARY OF AGRICULTURE IS AUTHORIZED TO PROVIDE FINANCIAL AND
TECHNICAL ASSISTANCE TO GUAM FOR IMPROVING FIRE CONTROL, WATERSHED
PROTECTION AND REFORESTATION, CONSISTENT WITH EXISTING LAWS,
ADMINISTERED BY THE SECRETARY OF AGRICULTURE, WHICH ARE APPLICABLE TO
THE CONTINENTAL UNITED STATES. THE PROGRAM AUTHORIZED BY THIS SECTION
SHALL BE DEVELOPED IN COOPERATION WITH THE TERRITORIAL GOVERNMENT OF
GUAM AND SHALL BE COVERED BY A MEMORANDUM OF UNDERSTANDING AGREED TO BY
THE TERRITORIAL GOVERNMENT AND THE DEPARTMENT. THE SECRETARY MAY ALSO
UTILIZE THE AGENCIES, FACILITIES, AND EMPLOYEES OF THE DEPARTMENT, AND
MAY COOPERATE WITH OTHER PUBLIC AGENCIES AND WITH PRIVATE ORGANIZATIONS
AND INDIVIDUALS IN GUAM AND ELSEWHERE.
SEC. 2. //48 USC 1421P.// THERE ARE HEREBY AUTHORIZED TO BE
APPROPRIATED SUCH SUMS AS MAY BE NECESSARY TO CARRY OUT THE PURPOSES OF
THIS ACT. SUMS APPROPRIATED IN PURSUANCE OF THIS ACT MAY BE ALLOCATED
TO SUCH AGENCIES OF THE DEPARTMENT AS ARE CONCERNED WITH THE
ADMINISTRATION OF THE PROGRAM IN GUAM.
LEGISLATIVE HISTORY:
HOUSE REPORT NO. 93 - 1222 (COMM. ON AGRICULTURE).
SENATE REPORT NO. 93 - 1130 (COMM. ON AGRICULTURE AND FORESTRY).
CONGRESSIONAL RECORD, VOL. 120 (1974):
AUG. 5, CONSIDERED AND PASSED HOUSE.
SEPT. 5, CONSIDERED AND PASSED SENATE.
PUBLIC LAW 93-420, 88 STAT 1153
BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE
UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT THE ACT OF OCTOBER
13, 1972 (86 STAT. 807) "28 USC 41 NOTE." IS AMENDED AS FOLLOWS:
(A) SECTION (2) OF SECTION 6 OF SUCH ACT IS AMENDED BY STRIKING OUT
"FIFTEEN MONTHS" AND INSERTING IN LIEU THEREOF "TWENTY-FOUR MONTHS".
(B) SECTION 7 OF SUCH ACT IS AMENDED BY STRIKING OUT "NOT MORE THAN
$270,000" AND INSERTING IN LIEU THEREOF "NOT MORE THAN $606,000".
LEGISLATIVE HISTORY:
HOUSE REPORT NO. 93 - 1344 (COMM. ON THE JUDICIARY).
SENATE REPORT NO. 93 - 742 (COMM. ON THE JUDICIARY).
CONGRESSIONAL RECORD, VOL. 120 (1974):
MAR. 26, CONSIDERED AND PASSED SENATE.
SEPT. 16, CONSIDERED AND PASSED HOUSE, AMENDED; SENATE
CONCURRED IN HOUSE AMENDMENT.
PUBLIC LAW 93-419, 88 STAT 1152
BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE
UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT CHAPTER 1 OF TITLE
37, UNITED STATES CODE, IS AMENDED BY AMENDING SECTION 101 AS FOLLOWS:
"(25) 'REGULAR COMPENSATION' OR 'REGULAR MILITARY COMPENSATION
(RMC)' MEANS THE TOTAL OF THE FOLLOWING ELEMENTS THAT A MEMBER OF
A UNIFORMED SERVICE ACCRUES OR RECEIVES, DIRECTLY OR INDIRECTLY,
IN CASH OR IN KIND EVERY PAYDAY: BASIC PAY, BASIC PAY ALLOWANCE
FOR QUARTERS, BASIC ALLOWANCE FOR SUBSISTENCE; AND FEDERAL TAX
ADVANTAGE ACCRUING TO THE AFOREMENTIONED ALLOWANCES BECAUSE THEY
ARE NOT SUBJECT TO FEDERAL INCOME TAX."
SEC. 2. CHAPTER 3 OF TITLE 37, UNITED STATES CODE, IS AMENDED BY
AMENDING SECTION 203(A) TO READ AS FOLLOWS:
"(A) THE RATES OF MONTHLY BASIC PAY FOR MEMBERS OF THE UNIFORMED
SERVICES WITHIN EACH PAY GRADE ARE THOSE PRESCRIBED IN ACCORDANCE WITH
SECTION 1009 OF THIS TITLE."
SEC. 3. CHAPTER 7 OT TITLE 37, UNITED STATES CODE, IS AMENDED AS
FOLLOWS:
(1) BY AMENDING SECTION 402(A) "37 USC 402." TO READ AS FOLLOWS:
"(A) EXCEPT AS OTHERWISE PROVIDED BY LAW, EACH MEMBER OF A UNIFORMED
SERVICE WHO IS ENTITLED TO BASIC PAY IS ENTITLED TO A BASIC ALLOWANCE
FOR SUBSISTENCE AS SET FORTH IN THIS SECTION."
(2) BY AMENDING THE FOURTH SENTENCE OF SECTION 402(B) TO READ AS
FOLLOWS: "THE ALLOWANCE FOR AN ENLISTED MEMBER WHO IS AUTHORIZED TO
RECEIVE THE BASIC ALLOWANCE FOR SUBSISTENCE UNDER THIS SUBSECTION IS AT
THE RATE PRESCRIBED IN ACCORDANCE WITH SECTION 1009 OF THIS TITLE."
(3) BY AMENDING THE FIRST SENTENCE OF SECTION 402(C) TO READ AS
FOLLOWS: "AN OFFICER OF A UNIFORMED SERVICE WHO IS ENTITLED TO BASIC
PAY IS, AT ALL TIMES, ENTITLED TO THE BASIC ALLOWANCE FOR SUBSISTENCE AT
THE MONTHLY RATE PRESCRIBED IN ACCORDANCE WITH SECTION 1009 OF THIS
TITLE."
(4) BY REPEALING SECTION 402(D).
(5) BY REDESIGNATING SECTION 402(E) AS SECTION 402(D), AND SECTION
402(F) AS SECTION 402(E).
(6) BY AMENDING SECTION 403(A) "37 USC 403." TO READ AS FOLLOWS:
"(A) EXCEPT AS OTHERWISE PROVIDED BY LAW, A MEMBER OF A UNIFORMED
SERVICE WHO IS ENTITLED TO BASIC PAY IS ENTITLED TO A BASIC ALLOWANCE
FOR QUARTERS AT THE MONTHLY RATES PRESCRIBED IN ACCORDANCE WITH SECTION
1009 OF THIS TITLE, ACCORDING TO THE PAYGRADE IN WHICH HE IS ASSIGNED OR
DISTRIBUTED FOR BASIC PAY PURPOSES."
SEC. 4. CHAPTER 19 OF TITLE 37, UNITED STATES CODE, "37 USC 1001."
IS AMENDED BY ADDING THE FOLLOWING NEW SECTION AFTER SECTION 1008 AND
INSERTING A CORRESPONDING ITEM IN THE CHAPTER ANALYSIS:
"(A) WHENEVER THE GENERAL SCHEDULE OF COMPENSATION FOR FEDERAL
CLASSIFIED EMPLOYEES AS CONTAINED IN SECTION 5332 OF TITLE 5, UNITED
STATES CODE, "5 USC 5332 NOTE." IS ADJUSTED UPWARD, THE PRESIDENT SHALL
IMMEDIATELY MAKE AN UPWARD ADJUSTMENT IN THE--,
"(1) MONTHLY BASIC PAY AUTHORIZED MEMBERS OF THE UNIFORMED
SERVICES BY SECTION 203(A) OF THIS TITLE; AND
"(2) BASIC ALLOWANCE FOR SUBSISTENCE AUTHORIZED ENLISTED
MEMBERS AND OFFICERS BY SECTION 402 OF THIS TITLE; AND
"(3) BASIC ALLOWANCE FOR QUARTERS AUTHORIZED MEMBERS OF THE
UNIFORMED SERVICES BY SECTION 403(A) OF THIS TITLE.
"(B) AN ADJUSTMENT UNDER THIS SECTION SHALL HAVE THE FORCE AND EFFECT
OF LAW AND SHALL--,
"(1) CARRY THE SAME EFFECTIVE DATE AS THAT APPLYING TO THE
COMPENSATION ADJUSTMENTS PROVIDED GENERAL SCHEDULE EMPLOYEES; "5
USC 5332 NOTE."
"(2) BE BASED ON THE RATES OF THE VARIOUS ELEMENTS OF
COMPENSATION AS DEFINED IN, OR MADE UNDER, SECTION 8 OF THE ACT OF
DECEMBER 16, 1967 (PUBLIC LAW 90 - 207; 81 STAT. 654), SECTION
402 OR 403 OF THIS TITLE, OR THIS SECTION; "ANTE, P. 1152." AND
"(3) PROVIDE ALL ELIGIBLE MEMBERS WITH AN INCREASE IN EACH
ELEMENT OF COMPENSATION, SET FORTH IN SUBSECTION (A) OF THIS
SECTION, WHICH IS OF THE SAME PERCENTAGE AS THE OVERALL AVERAGE
PERCENTAGE INCREASE IN THE GENERAL SCHEDULE RATES OF BASIC PAY FOR
CIVILIAN EMPLOYEES."
SEC. 5. UNTIL THE EFFECTIVE DATE OF THE FIRST UPWARD ADJUSTMENT IN
THE RATES OF MONTHLY BASIC PAY FOR MEMBERS OF THE UNIFORMED SERVICES
MADE BY THE PRESIDENT UNDER SECTION 1009 OF TITLE 37, UNITED STATES
CODE, AS ADDED BY SECTION 4 OF THIS ACT, "37 USC 1009 NOTE." AFTER THE
EFFECTIVE DATE OF THIS ACT, "ANTE, P. 1152." THE RATES OF MONTHLY BASIC
PAY FOR MEMBERS OF THE UNIFORMED SERVICES AUTHORIZED BY SECTION 203(A)
OF THAT TITLE "37 USC 203 NOTE." ARE THOSE PRESCRIBED BY EXECUTIVE ORDER
11740 OF OCTOBER 3, 1973, "37 USC 1009 NOTE." WHICH BECAME EFFECTIVE ON
OCTOBER 1, 1973. "37 USC 1009 NOTE."
SEC. 6. UNTIL THE EFFECTIVE DATE OF THE FIRST UPWARD ADJUSTMENT IN
THE RATES OF BASIC ALLOWANCE FOR SUBSISTENCE FOR ENLISTED MEMBERS AND
OFFICERS MADE BY THE PRESIDENT UNDER SECTION 1009 OF TITLE 37, UNITED
STATES CODE, AS ADDED BY SECTION 4 OF THIS ACT, AFTER THE EFFECTIVE DATE
OF THIS ACT, THE RATES PRESCRIBED UNDER SECTION 402 OF TITLE 37, UNITED
STATES CODE, AS IT EXISTED ON THE DATE BEFORE THE EFFECTIVE DATE OF THIS
ACT, SHALL CONTINUE IN EFFECT.
SEC. 7. UNTIL THE EFFECTIVE DATE OF THE FIRST ADJUSTMENT IN THE
RATES OF BASIC ALLOWANCE FOR QUARTERS FOR MEMBERS OF THE UNIFORMED
SERVICES MADE BY THE PRESIDENT UNDER SECTION 1009 OF TITLE 37, UNITED
STATES CODE, AS ADDED BY SECTION 4 OF THIS ACT, AFTER THE EFFECTIVE DATE
OF THIS ACT, THE RATES OF BASIC ALLOWANCE FOR QUARTERS PRESCRIBED IN
SECTION 403 (A) OF TITLE 37, UNITED STATES CODE, AS IT EXISTED ON THE
DAY BEFORE THE EFFECTIVE DATE OF THIS ACT, SHALL CONTINUE IN EFFECT.
SEC. 8. SECTION 8 OF THE ACT OF DECEMBER 16, 1967 (PUBLIC LAW 90 -
207; 81 STAT. 654), "37 USC 203 NOTE." IS REPEALED.
SEC. 9. THIS ACT IS EFFECTIVE UPON ENACTMENT. "37 USC 1009 NOTE."
LEGISLATIVE HISTORY:
HOUSE REPORT NO. 93 - 1146 (COMM. ON ARMED SERVICES).
SENATE REPORT NO. 93 - 1132 (COMM. ON ARMED SERVICES).
CONGRESSIONAL RECORD, VOL. 120 (1974):
JULY 1, CONSIDERED AND PASSED HOUSE.
SEPT. 5, CONSIDERED AND PASSED SENATE.
PUBLIC LAW 93-418, 88 STAT 1151.
RESOLVED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE UNITED
STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT THE PRESIDENT IS HEREBY
AUTHORIZED AND REQUESTED TO ISSUE A PROCLAMATION DESIGNATING THE PERIOD
OF SEPTEMBER 15, 1974, THROUGH OCTOBER 15, 1974, AS "JOHNNY HORIZON '76
CLEAN UP AMERICA MONTH", AND CALLING UPON THE PEOPLE OF THE UNITED
STATES TO OBSERVE SUCH PERIOD WITH APPROPRIATE ACTIVITIES.
LEGISLATIVE HISTORY:
SENATE REPORT NO. 93 - 1149 (COMM. ON THE JUDICIARY).
CONGRESSIONAL RECORD, VOL. 123 (1974):
AUG. 19, CONSIDERED AND PASSED HOUSE.
SEPT. 12, CONSIDERED AND PASSED SENATE.
PUBLIC LAW 93-417, 88 STAT 1151
BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE
UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT SECTION 1 OF THE
ACT OF JUNE 4, 1920 (22 U.S.C. 214), IS AMENDED TO READ AS FOLLOWS:
"SECTION 1. THERE SHALL BE COLLECTED AND PAID INTO THE TREASURY OF
THE UNITED STATES QUARTERLY A FEE OF $10 FOR EACH PASSPORT ISSUED AND A
FEE IN AN AMOUNT PRESCRIBED BY THE SECRETARY OF STATE BY REGULATION FOR
EXECUTING EACH APPLICATION FOR A PASSPORT. NOTHING CONTAINED IN THIS
SECTION SHALL BE CONSTRUED TO LIMIT THE RIGHT OF THE SECRETARY OF STATE
BY REGULATION (1) TO AUTHORIZE STATE OFFICIALS TO COLLECT AND RETAIN THE
EXECUTION FEE, OR (2) TO TRANSFER TO THE UNITED STATES POSTAL SERVICE
THE EXECUTION FEE FOR EACH APPLICATION ACCEPTED BY THAT SERVICE. NO
PASSPORT FEE SHALL BE COLLECTED FROM AN OFFICER OR EMPLOYEE OF THE
UNITED STATES PROCEEDING ABROAD IN THE DISCHARGE OF OFFICIAL DUTIES, OR
FROM MEMBERS OF HIS IMMEDIATE FAMILY; FROM AN AMERICAN SEAMAN WHO
REQUIRES A PASSPORT IN CONNECTION WITH HIS DUTIES ABOARD AN AMERICAN
FLAG-VESSEL; OR FROM A WIDOW, CHILD, PARENT, BROTHER, OR SISTER OF A
DECEASED MEMBER OF THE ARMED FORCES PROCEEDING ABROAD TO VISIT THE GRAVE
OF SUCH MEMBER. NO EXECUTION FEE SHALL BE COLLECTED FOR AN APPLICATION
MADE BEFORE A FEDERAL OFFICIAL BY A PERSON EXCUSED FROM PAYMENT OF THE
PASSPORT FEE UNDER THIS SECTION.".
LEGISLATIVE HISTORY:
HOUSE REPORT NO. 93 - 1242 (COMM. ON FOREIGN AFFAIRS).
SENATE REPORT NO. 93 - 1124 (COMM. ON FOREIGN RELATIONS).
CONGRESSIONAL RECORD, VOL. 120 (1974):
AUG. 5, CONSIDERED AND PASSED HOUSE.
SEPT. 4, CONSIDERED AND PASSED SENATE.
PUBLIC LAW 93-416, 88 STAT 1143
BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE
UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT (A) SECTION 8101
(1) OF TITLE 5, UNITED STATES CODE (HEREINAFTER REFERRED TO AS THE
"ACT"), IS AMENDED BY INSERTING "AND" AFTER THE SEMICOLON ON SUBSECTION
E (IV) AND ADDING A NEW PARAGRAPH (F) AS FOLLOWS:
"(F) AN INDIVIDUAL SELECTED PURSUANT TO CHAPTER 121 OF TITLE
28, UNITED STATES CODE, "28 USC 1861." AND SERVING AS A PETIT OR
GRAND JUROR AND WHO IS OTHERWISE AN EMPLOYEE FOR THE PURPOSES OF
THIS SUBCHAPTER AS DEFINED BY PARAGRAPHS (A), (B), (C), (D), AND
(E) OF THIS SUBSECTION.".
(B) SECTION 8101(2) OF THE ACT "5 USC 8101." IS AMENDED BY INSERTING
", PODIATRISTS, DENTISTS, CLINICAL PSYCHOLOGISTS, OPTOMETRISTS,
CHIROPRACTORS," AFTER "SURGEONS", AND ADDING AFTER THE WORDS "STATE LAW"
A PERIOD, AND THE FOLLOWING: "THE TERM 'PHYSICIAN' INCLUDES
CHIROPRACTORS ONLY TO THE EXTENT THAT THEIR REIMBURSABLE SERVICES ARE
LIMITED TO TREATMENT CONSISTING OF MANUAL MANIPULATION OF THE SPINE TO
CORRECT A SUBLUXATION AS DEMONSTRATED BY X-RAY TO EXIST, AND SUBJECT TO
REGULATION BY THE SECRETARY".
(C) SECTION 8101(3) OF THE ACT IS AMENDED BY INSERTING "PODIATRISTS,
DENTISTS, CLINICAL PSYCHOLOGISTS, OPTOMETRISTS, CHIROPRACTORS," AFTER
"SUPPLIES BY", AND BY INSERTING BEFORE THE SEMICOLON ". REIMBURSABLE
CHIROPRACTIC SERVICES ARE LIMITED TO TREATMENT CONSISTING OF MANUAL
MANIPULATION OF THE SPINE TO CORRECT A SUBLUXATION AS DEMONSTRATED BY
X-RAY TO EXIST, AND SUBJECT TO REGULATION BY THE SECRETARY".
(D) SECTION 8101(5) OF THE ACTIIS AMENDED BY INSERTING BEFORE THE
SEMICOLON ", AND DAMAGE TO OR DESTRUCTION OF MEDICAL BRACES, ARTIFICIAL
LIMBS, AND OTHER PROSTHETIC DEVICES WHICH SHALL BE REPLACED OR REPAIRED,
AND SUCH TIME LOST WHILE SUCH DEVICE OR APPLIANCE IS BEING REPLACED OR
REPAIRED; EXCEPT THAT EYEGLASSES AND HEARING AIDS WOULD NOT BE
REPLACED, REPAIRED, OR OTHERWISE COMPENSATED FOR, UNLESS THE DAMAGES OR
DESTRUCTION IS INCIDENT TO A PERSONAL INJURY REQUIRING MEDICAL
SERVICES".
(E) SECTION 8101(11) OF THE ACT IS AMENDED TO READ AS FOLLOWS:
"(11) 'WIDOWER' MEANS THE HUSBAND LIVING WITH OR DEPENDENT FOR
SUPPORT ON THE DECEDENT AT THE TIME OF HER DEATH, OR LIVING APART
FOR REASONABLE CAUSE OR BECAUSE OF HER DESERTION;".
(F) SECTION 8101 OF THE ACT IS AMENDED BY ADDING AT THE END
THEREOF THE FOLLOWING NEW PARAGRAPHS:
"(20) 'ORGAN' MEANS A PART OF THE BODY THAT PERFORMS A SPECIAL
FUNCTION, AND FOR PURPOSES OF THIS SUBCHAPTER EXCLUDES THE BRAIN,
HEART, AND BACK; AND
"(21) 'UNITED STATES MEDICAL OFFICERS AND HOSPITALS' INCLUDES
MEDICAL OFFICERS AND HOSPITALS OF THE ARMY, NAVY, AIR FORCE,
VETERANS' ADMINISTRATION, AND UNITED STATES PUBLIC HEALTH SERVICE,
AND ANY OTHER MEDICAL OFFICER OR HOSPITAL DESIGNATED AS A UNITED
STATES MEDICAL OFFICER OR HOSPITAL BY THE SECRETARY OF LABOR."
(G) SECTION 8101(1) (D) IS AMENDED BY DELETING THE WORD "AND" AFTER
THE SEMICOLON.
SEC. 2. (A) SECTION 8103(A) (3) OF THE ACT IS AMENDED TO READ AS
FOLLOWS:
"(3) BY OR ON ORDER OF UNITED STATES MEDICAL OFFICERS AND
HOSPITALS, OR, AT THE EMPLOYEE'S OPTION, BY OR ON ORDER OF
PHYSICIANS AND HOSPITALS DESIGNATED OR APPROVED BY THE SECRETARY.
THE EMPLOYEE MAY INITIALLY SELECT A PHYSICIAN TO PROVIDE MEDICAL
SERVICES, APPLIANCES, AND SUPPLIES, IN ACCORDANCE WITH SUCH REGULATIONS
AND INSTRUCTIONS AS THE SECRETARY CONDIDERS NECESSARY, AND MAY BE
FURNISHED NECESSARY AND REASONABLE TRANSPORTATION AND EXPENSES INCIDENT
TO THE SECURING OF SUCH SERVICES, APPLIANCES, AND SUPPLIES. THESE
EXPENSES, WHEN AUTHORIZED OR APPROVED BY THE SECRETARY, SHALL BE PAID
FROM THE EMPLOYEES' COMPENSATION FUND."
SEC. 3. SECTION 8104 OF THE ACT "5 USC 8104." IS AMENDED BY INSERTING
"(A)" BEFORE "THE" AT THE BEGINNING THEREOF, AND ADDING AT THE END
THEREOF THE FOLLOWING NEW SUBSECTION:
"(B) NOTWITHSTANDING SECTION 8106, "5 USC 8106." INDIVIDUALS DIRECTED
TO UNDERGO VOCATIONAL REHABILITATION BY THE SECRETARY SHALL, WHILE
UNDERGOING SUCH REHABILITATION, RECEIVE COMPENSATION AT THE RATE
PROVIDED IN SECTIONS 8105 AND 8110 OF THIS TITLE, "5 USC 8105, 8110."
LESS THE AMOUNT OF ANY EARNINGS RECEIVED FROM RENUMERATIVE EMPLOYMENT,
OTHER THAN EMPLOYMENT UNDERTAKEN PURSUANT TO SUCH REHABILITATION."
SEC. 4. SECTION 8107(A) OF THE ACT "5 USC 8107." IS AMDENDED TO READ
AS FOLLOWS:
"(A) IF THERE IS PERMAMENT DISABILITY INVOLVING THE LOSS, OR LOSS OF
USE, OF A MEMBER OR FUNCTION OF THE BODY OR INVOLVING DISFIGUREMENT, THE
EMPLOYEE IS ENTITLED TO BASIC COMPENSATION FOR THE DISABILITY, AS
PROVIDED BY THE SCHEDULE IN SUBSECTION (C) OF THIS SECTION, AT THE RATE
OF 66 2/3 PERCENT OF HIS MONTHLY PAY. THE BASIC COMPENSATION IS--,
"(1) PAYABLE REGARDLESS OF WHETHER THE CAUSE OF THE DISABILITY
ORIGINATES IN A PART OF THE BODY OTHER THAN THAT MEMBER;
"(2) PAYABLE REGARDLESS OF WHETHER THE DISABILITY ALSO INVOLVES
ANOTHER IMPAIRMENT OF THE BODY; AND
"(3) IN ADDITION TO COMPENSATION FOR TEMPORARY TOTAL OR
TEMPORARY PARTIAL DISABILITY."
SEC. 5. SECTION 8107(C) OF THE ACT IS AMENDED BY ADDING AT THE END
THEREOF THE FOLLOWING NEW SUBPARAGRAPH:
"(22) FOR PERMANENT LOSS OR LOSS OF USE OF ANY OTHER IMPORTANT
EXTERNAL OR INTERNAL ORGAN OF THE BODY AS DETERMINED BY THE
SECRETARY, PROPER AND EQUITABLE COMPENSATION NOT TO EXCEED 312
WEEKS' COMPENSATION FOR EACH ORGAN SO DETERMINED SHALL BE PAID IN
ADDITION TO ANY OTHER COMPENSATION PAYABLE UNDER THIS SCHEDULE."
SEC. 6. SECTION 8110(A) (2) OF THE ACT "5 USC 8110." IS AMENDED TO
READ AS FOLLOWS:
"(2) A HUSBAND, IF--,
"(A) HE IS A MEMBER OF THE SAME HOUSEHOLD AS THE EMPLOYEE;
OR
"(B) HE IS RECEIVING REGULAR CONTRIBUTIONS FROM THE EMPLOYEE
FOR HIS SUPPORT; OR
"(C) THE EMPLOYEE HAS BEEN ORDERED BY A COURT TO CONTRIBUTE TO
HIS SUPPORT;"
SEC. 7. (A) SECTION 8111(A) OF THE ACT "5USC 8111." IS AMENDED BY
STRIKING OUT "$300" AND INSERTING IN LIEU THEREOF "$500".
(B) SECTION 8111(B) OF THE ACT IS AMENDED BY STRIKING OUT "$100" AND
INSERTING "$200".
SEC. 8. (A) SECTION 8113 OF THE ACT "5 USC 8113." IS AMENDED BY
STRIKING OUT SUBSECTION (B) AND REDESIGNATING SUBSECTION (C) AS
SUBSECTION (B).
(B) SECTION 8143(A) (2) OF THE ACT "5 USC 8143." IS AMENDED BY
STRIKING OUT ", (B)".
SEC. 9. (A) SECTION 8116(A) OF THE ACT "5 USC 8116." IS AMENDED BY
STRIKING OUT THE WORD "AND" IN CLAUSE (1), STRIKING OUT THE PERIOD AFTER
CLAUSE (2) AND INSERTING IN LIEU THEREOF A SEMICOLON, AND BY INSERTING
THE FOLLOWING TWO CLAUSES IMMEDIATELY AFTER CLAUSE (2):
"(3) OTHER BENEFITS ADMINSTERED BY THE VETERANS' ADMINISTRATION
UNLESS SUCH BENEFITS ARE PAYABLE FOR THE SAME INJURY OR THE SAME
DEATH; AND
"(4) RETIRED PAY, RETIREMENT PAY, RETAINER PAY, OR EQUIVALENT
PAY FOR SERVICE IN THE ARMED FORCES OR OTHER INIFORMED SERVICES,
SUBJECT TO THE REDUCTION OF SUCH PAY IN ACCORDANCE WITH SECTION
5532(B) OF TITLE 5, UNITED STATES CODE."
(B) THE AMENDMENT MADE BY THIS SECTION SHALL BE EFFECTIVE WITH
RESPECT TO DISABILITY OR DEATH OCCURRING BEFORE OR AFTER THE DATE OF
ENACTMENT OF THIS ACT "5 USC 8116 NOTE." AND WITHOUT REGARD TO ANY
ELECTION UNDER SECTION 8116(B) OF THE ACT; "5 USC 8116." BUT NO PAYMENT
SHALL BE MADE BY REASON OF SUCH AMENDMENT FOR ANY PERIOD PRIOR TO THE
DATE OF ENACTMENT OF THIS ACT.
SEC. 10. SECTION 8117 OF THE ACT "5USC 8117." IS AMENDED BY STRIKING
OUT "21 DAYS" AND INSERTING IN LIEU THEREOF "14 DAYS".
SEC. 11. SECTION 8118 OF THE ACT "5 USC 8118." IS AMENDED TO READ AS
FOLLOWS:
"(A) THE UNITED STATES SHALL AUTHORIZE THE CONTINUATION OF PAY OF AN
EMPLOYEE, AS DEFINED IN SECTION 8101(1) OF THIS TITLE "ANTE, P. 1143."
(OTHER THAN THOSE REFERRED TO IN CLAUSE (B) OR (E), WHO HAS FILED A
CLAIM FOR A PERIOD OF WAGE LOSS DUE TO A TRAUMATIC INJURY WITH HIS
IMMEDIATE SUPERIOR ON A FORM APPROVED BY THE SECRETARY OF LABOR WITHIN
THE TIME SPECIFIED IN SECTION 8122(A) (2) OF THIS TITLE. "POST, P.
1147."
(B) CONTINUATION OF PAY UNDER THIS SUBCHAPTER SHALL BE FURNISHED--,
"(1) WITHOUT A BREAK IN TIME UNLESS CONTROVERTED UNDER
REGULATIONS OF THE SECRETARY;
"(2) FOR A PERIOD NOT TO EXCEED 45 DAYS; AND
"(3) UNDER ACCOUNTING PROCEDURES AND SUCH OTHER REGULATIONS AS
THE SECRETARY MAY REQUIRE.
"(C) AN EMP LOYEE MAY USE ANNUAL OR SICK LEAVE TO HIS CREDIT AT THE
TIME THE DISABILITY BEGINS, BUT HIS COMPENSATION FOR DISABILITY DOES NOT
BEGIN, AND THE TIME PERIODS SPECIFIED BY SECTION 8117 OF THIS TITLE DO
NOT BEGIN TO RUN, UNTIL TERMINATION OF PAY AS SET FORTH IN SUBSECTIONS
(A) AND (B) OR THE USE OF ANNUAL OR SICK LEAVE ENDS.
"(D) IF A CLAIM UNDER SUBSECTION (A) IS DENIED BY THE SECRETARY,
PAYMENTS UNDER THIS SECTION SHALL, AT THE OPTION OF THE EMPLOYEE, BE
CHARGED TO SICK OR ANNUAL LEAVE OR SHALL BE DEEMED OVERPAYMENTS OF PAY
WITHIN THE MEANING OF SECTION 5584 OF TITLE 5, UNITED STATES CODE.
"(E) PAYMENTS UNDER THIS SECTION SHALL NOT BE CONSIDERED AS
COMPENSATION AS DEFINED BY SECTION 8101(12) OF THIS TITLE."
SEC. 12. (A) SECTION 8119 OF THE ACT"5 USC 8119." IS AMENDED TO READ
AS FOLLOWS:
"AN EMPLOYEE INJURED IN THE PERFORMANCE OF HIS DUTY, OR SOMEONE ON
HIS BEHALF, SHALL GIVE NOTICE THEREOF. NOTICE OF A DEATH BELIEVED TO BE
RELATED TO THE EMPLOYMENT SHALL BE GIVEN BY AN ELIGIBLE BENEFICIARY
SPECIFIED IN SECTION 8133 OF THIS TITLE,"POST, P. 1147." OR SOMEONE ON
HIS BEHALF. A NOTICE OF INJURY OR DEATH SHALL--,
"(A) BE GIVEN WITHIN 30 DAYS AFTER THE INJURY OR DEATH;
"(B) BE GIVEN TO THE IMMEDIATE SU PERIOR OF THE EMPLOYEE BY
PERSONAL DELIVERY OR BY DEPOSITING IT IN THE MAIL PROPERLY STAMPED
AND ADDRESSED;
"(C) BE IN WRITING;
"(D) STATE THE NAME AND ADDRESS OF THE EMPLOYEE;
"(E) STATE THE YEAR, MONTH, DAY, AND HOUR WHEN AND THE
PARTICULAR LOCALITY WHERE THE INJURY OR DEATH OCCURRED;
"(F) STATE THE CAUSE AND NATURE OF THE INJURY, OR, IN THE CASE
OF DEATH, THE EMPLOYMENT FACTORS BELIEVED TO BE THE CAUSE; AND
"(G) BE SIGNED BY AND CONTAIN THE ADDRESS OF THE INDIVIDUAL
GIVING THE NOTICE."
(B) THE TABLE OF CONTENTS OF CHAPTER 81 OF THIS ACT IS AMENDED BY
STRIKING OUT "8119. NOTICE OF INJURY; FAILURE TO GIVE." AND INSERTING
IN LIEU THEREOF "8119. NOTICE OF INJURY OR DEATH.".
SEC. 13. SECTION 8121(3) OF THE ACT "5 USC 8121." IS AMENDED BY
STRIKING OUT "FURNISHED" AND INSERTING "APPROVED" IN LIEU THEREOF.
SEC. 14. SECTION 8122 OF THE ACT IS AMENDED AS FOLLOWS: (1) STRIKE
SUBSECTION (A) OF SECTION 8122 "5 USC 3122." AND INSERT IN LIEU THEREOF
THE FOLLOWING:
"(A) AN ORIGINAL CLAIM FOR COMPENSATION FOR DISABILITY OR DEATH MUST
BE FILED WITHIN 3 YEARS AFTER THE INJURY OR DEATH. COMPENSATION FOR
DISABILITY OR DEATH, INCLUDING MEDICAL CARE IN DISABILITY CASES, MAY NOT
BE ALLOWED IF CLAIM IS NOT FILED WITHIN THAT TIME UNLESS--,
"(1) THE IMMEDIATE SUPERIOR HAD ACTUAL KNOWLEDGE OF THE INJURY
OR DEATH WITHIN 30 DAYS. THE KNOWLEDGE MUST BE SUCH TO PUT THE
IMMEDIATE SUPERIOR REASONABLY ON NOTICE OF AN ON-THE-JOB INJURY OR
DEATH; OR
"(2) WRITTEN NOTICE OF INJURY OR DEATH AS SPECIFIED IN SECTION
8119 OF THIS TITLE "ANTE, P. 1146." WAS GIVEN WITHIN 30 DAYS."
(2) STRIKE SUBSECTION (C) OF SECTION 8122 AND INSERT IN LIEU THEREOF
THE FOLLOWING:
"(C) THE TIMELY FILING OF A DISABILITY CLAIM BECAUSE OF INJURY WILL
SATISFY THE TIME REQUIREMENTS FOR A DEATH CLAIM BASED ON THE SAME
INJURY."
(3) SUBSECTION (D) OF SECTION 8122 IS AMENDED BY CHANGING THE
REFERENCE TO SUBSECTION "(A)-(C)" TO SUBSECTIONS "(A) AND (B)", BY
ADDING AT THE END THEREOF THE FOLLOWING NEW CLAUSE:
"(3) RUN AGAINST ANY INDIVIDUAL WHOSE FAILURE TO COMPLY IS
EXCUSED BY THE SECRETARY ON THE GROUND THAT SUCH NOTICE COULD NOT
BE GIVEN BECAUSE OF EXCEPTIONAL CIRCUMSTANCES."
SEC. 15. SECTION 8132 OF THE ACT "5 USC 8132." IS AMENDED TO READ AS
FOLLOWS:
"IF AN INJURY OR DEATH FOR WHICH COMPENSATION IS PAYABLE UNDER THIS
SUBCHAPTER IS CAUSED UNDER CIRCUMSTANCES CREATING A LEGAL LIABILITY IN A
PERSON OTHER THAN THE UNITED STATES TO PAY DAMAGES, AND A BENEFICIARY
ENTITLED TO COMPENSATION FROM THE UNITED STATES FOR THAT INJURY OR DEATH
RECEIVES MONEY OR OTHER PROPERTY IN SATISFACTION OF THAT LIABILITY AS
THE RESULT OF SUIT OR SETTLEMENT BY HIM OR IN HIS BEHALF, THE
BENEFICIARY, AFTER DEDUCTING THEREFROM THE COSTS OF SUIT AND A
REASONABLE ATTORNEY'S FEE, SHALL REFUND TO THE UNITED STATES THE AMOUNT
OF COMPENSATION PAID BY THE UNITED STATES AND CREDIT ANY SURPLUS ON
FUTURE PAYMENTS OF COMPENSATION PAYABLE TO HIM FOR THE SAME INJURY. NO
COURT, INSURER, ATTORNEY, OR OTHER PERSON SHALL PAY OR DISTRIBUTE TO THE
BENEFICIARY OR HIS DESIGNEE THE PROCEEDS OF SUCH SUIT OR SETTLEMENT
WITHOUT FIRST SATISFYING OR ASSURING SATISFACTION OF THE INTEREST OF THE
UNITED STATES. THE AMOUNT REFUNDED TO THE UNITED STATES SHALL BE
CREDITED TO THE EMPLOYEES' COMPENSATION FUND. IF COMPENSATION HAS NOT
BEEN PAID TO THE BENEFICIARY, HE SHALL CREDIT THE MONEY OR PROPERTY ON
COMPENSATION PAYABLE TO HIM BY THE UNITED STATES FOR THE SAME INJURY.
HOWEVER, THE BENEFICIARY IS ENTITLED TO RETAIN, AS A MINIMUM, AT LEAST
ONE-FIFTH OF THE NET AMOUNT OF THE MONEY OR OTHER PROPERTY REMAINING
AFTER THE EXPENSES OF A SUIT OR SETTLEMENT HAVE BEEN DEDUCTED; AND IN
ADDITION TO THIS MINIMUM AND AT THE TIME OF DISTRIBUTION, AN AMOUNT
EQUIVALENT TO A REASONABLE ATTORNEY'S FEE PROPORTIONATE TO THE REFUND TO
THE UNITED STATES."
SEC. 16. (A) SUBSECTIONS (A) AND (B) OF SECTION 8133 OF THE ACT "5
USC 8133." ARE AMENDED TO READ AS FOLLOWS:
"(A) IF DEATH RESULTS FROM AN INJURY SUSTAINED IN THE PERFORMANCE OF
DUTY, THE UNITED STATES SHALL PAY A MONTHOY COMPENSATION EQUAL TO A
PERCENTAGE OF THE MONTHLY PAY OF THE DECEASED EMPLOYEE IN ACCORDANCE
WITH THE FOLLOWING SCHEDULE:
"(1) TO THE WIDOW OR WIDOWER, IF THERE IS NO CHILD, 50 PERCENT.
"(2) TO THE WIDOW OR WIDOWER, IF THERE IS A CHILD, 45 PERCENT
AND IN ADDITION 15 PERCENT FOR EACH CHILD NOT TO EXCEED A TOTAL OF
75 PERCENT FOR THE WIDOW OR WIDOWER AND CHILDREN.
"(3) TO THE CHILDREN, IF THERE IS NO WIDOW OR WIDOWER, 40
PERCENT FOR ONE CHILD AND 15 PERCENT ADDITIONAL FOR EACH
ADDITIONAL CHILD NOT TO EXCEED A TOTAL OF 75 PERCENT, DIVIDED
AMONG THE CHILDREN SHARE AND SHARE ALIKE.
"(4) TO THE PARENTS, IF THERE IS NO WIDOW, WIDOWER, OR CHILD,
AS FOLLOWS:
"(A) 25 PERCENT IF ONE PARENT WAS WHOLLY DEPENDENT ON THE
EMPLOYEE AT THE TIME OF DEATH AND THE OTHER WAS NOT DEPENDENT TO
ANY EXTENT;
"(B) 20 PERCENT TO EACH IF BOTH WERE WHOLLY DEPENDENT; OR
"(C) A PROPORTIONATE AMOUNT IN THE DISCRETION OF THE SECRETARY
OF LABOR IF ONE OR BOTH WERE PARTLY DEPENDENT. IF THERE IS A
WIDOW, WIDOWER, OR CHILD, SO MUCH OF THE PERCENTAGES ARE PAYABLE
AS, WHEN ADDED TO THE TOTAL PERCENTAGES PAYABLE TO THE WIDOW,
WIDOWER, AND CHILDREN, WILL NOT EXCEED A TOTAL OF 75 PERCENT.
"(5) TO THE BROTHERS, SISTERS, GRANDPARENTS, AND GRANDCHILDREN,
IF THERE IS NO WIDOW, WIDOWER, CHILD, OR DEPENDENT PARENT AS
FOLLOWS:
"(A) 20 PERCENT IF ONE WAS WHOLLY DEPENDENT ON THE EMPLOYEE AT
THE TIME OF DEATH;
"(B) 30 PERCENT IF MORE THAN ONE WAS WHOLLY DEPENDENT, DIVIDED
AMONG THE DEPENDENTS SHARE AND SHARE ALIKE; OR
"(C) 10 PERCENT IF NO ONE IS WHOLLY DEPENDENT BUT ONE OR MORE
IS PARTLY DEPENDENT, DIVIDED AMONG THE DEPENDENTS SHARE AND SHARE
ALIKE. IF THERE IS A WIDOW, WIDOWER, OR CHILD, OR DEPENDENT
PARENT, SO MUCH OF THE PERCENTAGES ARE PAYABLE AS, WHEN ADDED TO
THE TOTAL PERCENTAGES PAYABLE TO THE WIDOW, WIDOWER, CHILDREN, AND
DEPENDENT PARENTS, WILL NOT EXCEED A TOTAL OF 75 PERCENT.
"(B) THE COMPENSATION PAYABLE UNDER SUBSECTION (A) OF THIS SECTION IS
PAID FROM THE TIME OF DEATH UNTIL--,
"(1) A WIDOW, OR WIDOWER DIES OR REMARRIES BEFORE REACHING AGE
OF 60;
"(2) A CHILD, A BROTHER, A SISTER, OR A GRANDCHILD DIES,
MARRIES, OR BECOMES 18 YEARS OF AGE, OR IF OVER AGE 18 AND
INCAPABLE OF SELF-SUPPORT BECOMES CAPABLE OF SELF-SUPPORT; OR
"(3) A PARENT OR GRANDPARENT DIES, MARRIES, OR CEASES TO BE
DEPENDENT.
NOTWITHSTANDING PARAGRAPH (2) OF THIS SUBSECTION, COMPENSATION PAYABLE
TO OR FOR A CHILD, A BROTHER OR SISTER, OR GRANDCHILD THAT WOULD
OTHERWISE END BECAUSE THE CHILD, BROTHER OR SISTER, OR GRANDCHILD HAS
REACHED 18 YEARS OF AGE SHALL CONTINUE IF HE IS A STUDENT AS DEFINED BY
SECTION 8101 OF THIS TITLE "ANTE, P. 1143." AT THE TIME HE REACHES 18
YEARS OF AGE FOR SO LONG AS HE CONTINUES TO BE SUCH A STUDENT OR UNTIL
HE MARRIES. A WIDOW OR WIDOWER WHO HAS ENTITLEMENTS TO BENEFITS UNDER
THIS TITLE DERIVED FROM MORE THAN ONE HUSBAND OR WIFE SHALL ELECT ONE
ENTITLEMENT TO BE UTILIZED."
(B) SECTION 8135(B) OF THE ACT "5 USC 8135." IS AMENDED BY INSERTING
AFTER "ON REMARRIAGE" THE FOLLOWING: "BEFORE REACHING AGE 60".
SEC. 17. SECTION 8133(E) (1) OF THE ACT "5 USC 8133." IS AMENDED TO
READ AS FOLLOWS:
"(1) THE MONTHLY PAY COMPUTED UNDER SECTION 8114 OF THIS
TITLE, EXCEPT FOR INCREASES AUTHORIZED BY SECTION 8146A OF THIS
TITLE; OR".
SEC. 18. SECTION 8133 OF THE ACT IS AMENDED BE ADDING AT THE END
THEREOF THE FOLLOWING NEW SUBSECTION:
"(F) NOTWITHSTANDING ANY FUNERAL AND BURIAL EXPENSES PAID UNDER
SECTION 8134, "5 USC 8134." THERE SHALL BE PAID A SUM OF $200 TO THE
PERSONAL REPRESENTATIVE OF A DECEASED EMPLOYEE WITHIN THE MEANING OF
SECTION 8101(1) OF THIS TITLE "ANTE, P. 1143." FOR REIMBURSEMENT OF THE
COSTS OF TERMINATION OF THE DECEDENT'S STATUS AS AN EMPLOYEE OF THE
UNITED STATES."
SEC. 19. SECTION 8135(A) (1) OF THE ACT IS AMENDED BY STRIKING OUT
"$5" AND INSERTING IN LIEU THEREOF "$50".
SEC. 20. THE LAST TWO SENTENCES OF SUBSECTION (A) OF SECTION 8135 OF
THE ACT "5 USC 8135." ARE AMENDED TO READ AS FOLLOWS: "THE PROBABILITY
OF THE DEATH OF THE BENEFICIARY BEFORE THE EXPIRATION OF THE PERIOD
DURING WHICH HE IS ENTITLED TO COMPENSATION SHALL BE DETERMINED
ACCORDING TO THE MOST CURRENT UNITED STATES LIFE TABLES, AS DEVELOPED BY
THE UNITED STATES DEPARTMENT HEALTH, EDUCATION, AND WELFARE, WHICH SHALL
BE UPDATED FROM TIME TO TIME, BUT THE LUMP-SUM PAYMENT TO A WIDOW OR
WIDOWER OF THE DECEASED EMPLOYEE MAY NOT EXCEED 60 MONTHS' COMPENSATION.
THE PROBABILITY OF THE HAPPENING OF ANY OTHER CONTINGENCY AFFECTING THE
AMOUNT OF DURATION OF COMPENSATION SHALL BE DISREGARDED."
SEC. 21. SECTION 8146A OF THE ACT "5 USC 8146A." IS AMENDED BY
STRIKING "THIRD" FROM SUBSECTION (A) AND BY STRIKING SUBSECTION (B) AND
INSERTING IN LIEU THEREOF THE FOLOWING:
"(B) THE REGULAR PERIODIC COMPENSATION PAYMENTS AFTER ADJUSTMENT
UNDER THIS SECTION SHALL BE FIXED AT THE NEAREST DOLLAR. HOWEVER, THE
REGULAR PERIODIC COMPENSATION AFTER ADJUSTMENT SHALL REFLECT AN INCREASE
OF AT LEAST $1."
SEC. 22. SUBCHAPTER 1 OF CHAPTER 81 OF THE ACT "5 USC 8101." IS
AMENDED BY ADDING THE FOLLOWING NEW SECTION:
"(A) IN THE EVENT THE INDIVIDUAL RESUMES EMPLOYMENT WITH THE FEDERAL
GOVERNMENT, THE ENTIRE TIME DURING WHICH THE EMPLOYEE WAS RECEIVING
COMPENSATION UNDER THIS CHAPTER SHALL BE CREDITED TO THE EMPLOYEE FOR
THE PURPOSES OF WITHIN-GRADE STEP INCREASES, RETENTION PURPOSES, AND
OTHER RIGHTS AND BENEFITS BASED UPON LENGTH OF SERVICE.
"(B) UNDER REGULATIONS ISSUED BY THE CIVIL SERVICE COMMISSION--,
"(1) THE DEPARTMENT OR AGENCY WHICH WAS THE LAST EMPLOYER SHALL
IMMEDIATELY AND UNCONDITIONALLY ACCORD THE EMPLOYEE, IF THE INJURY
OR DISABILITY HAS BEEN OVERCOME WITHIN ONE YEAR AFTER THE DATE OF
COMMENCEMENT OF COMPENSATION OR FROM THE TIME COMPENSABLE
DISABILITY RECURS IF THE RECURRENCE BEGINS AFTER THE INJURED
EMPLOYEE RESUMES REGULAR FULL-TIME EMPLOYMENT WITH THE UNITED
STATES, THE RIGHT TO RESUME HIS FORMER OR AN EQUIVALENT POSITION,
AS WELL AS ALL OTHER ATTENDANT RIGHTS WHICH THE EMPLOYEE WOULD
HAVE HAD, OR ACQUIRED, IN HIS FORMER POSITION HAD HE NOT BEEN
INJURED OR DISABLED, INCLUDING THE RIGHTS TO TENURE, PROMOTION,
AND SAFEGUARDS IN REDUCTIONS-IN-FORCE PROCEDURES, AND
"(2) THE DEPARTMENT OR AGENCY WHICH WAS THE LAST EMPLOYER
SHALL, IF THE INJURY OR DISABILITY IS OVERCOME WITHIN A PERIOD OF
MORE THAN ONE YEAR AFTER THE DATE OF COMMENCEMENT OF COMPENSATION,
MAKE ALL REASONABLE EFFORTS TO PLACE, AND ACCORD PRIORITY TO
PLACING, THE EMPLOYEE IN HIS FORMER OR EQUIVALENT POSITION WITHIN
SUCH DEPARTMENT OR AGENCY, OR WITHIN ANY OTHER DEPARTMENT OR
AGENCY."
(C) SECTION 3315A OF TITLE 5, UNITED STATES CODE, IS REPEALED UPON
THE EFFECTIVE DATE OF THIS SECTION.
SEC. 23. (A) THE TABLE OF CONTENTS OF CHAPTER 81 OF THE ACT IS
AMENDED BY THE ADDITION OF THE FOLLOWING:
"8151. CIVIL SERVICE RETENTION RIGHTS.".
(B) SECTION 8142(C) (2) OF THE ACT "5 USC 8142." IS AMENDED BY ADDING
AFTER "TITLE 22" THE PHRASE ", OR A VOLUNTEER WITH ONE OR MORE MINOR
CHILDREN AS DEFINED IN SECTION 2504 OF TITLE 22,".
SEC. 24. SECTION 8146A OF THE ACT "ANTE, P. 1149." IS AMENDED BY
ADDING AT THE END THEREOF THE FOLLOWING NEW SUBSECTION:
"(C) THIS SECTION SHALL BE APPLICABLE TO PERSONS EXCLUDED BY SECTION
15 OF THE FEDERAL EMPLOYEES' COMPENSATION ACT AMENDMENTS OF 1966 (PUBLIC
LAW 89 - 488) UNDER THE FOLLOWING STATUTES: ACT OF FEBRUARY 15, 1934
(48 STAT. 351); ACT OF JUNE 26, 1936 (49 STAT. 2035); ACT OF APRIL 8,
1935 (49 STAT. 115); ACT OF JULY 25, 1942 (56 STAT. 710); PUBLIC LAW
84 - 955 (AUGUST 3, 1956); PUBLIC LAW 77 - 784 (DECEMBER 2, 1942);
PUBLIC LAW 84 - 879 (AUGUST 1, 1956); PUBLIC LAW 80 - 896 (JULY 3,
1948); ACT OF SEPTEMBER 8, 1959 (73 STAT. 469). "53 USC APP. 2001
NOTE." BENEFIT PAYMENTS TO THESE PERSONS SHALL INITIALLY BE INCREASED BY
THE TOTAL PERCENTAGE OF THE INCREASES IN THE PRICE INDEX FROM THE BASE
MONTH OF JULY 1966, TO THE NEXT MOST RECENT BASE MONTH FOLLOWING THE
EFFECTIVE DATE OF THIS SUBSECTION."
SEC. 25. SECTION 8147 OF THE ACT "5 USC 8147." IS AMENDED BY ADDING
AFTER THE FIRST COMMA IN SUBSECTION (C) THE FOLLOWING: "THE UNITED
STATES POSTAL SERVICE, OR"
SEC. 26. SECTION 8147(A) OF THE ACT IS AMENDED BY STRIKING OUT
"BUREAU OF THE BUDGET" AND INSERTING IN LIEU THEREOF "OFFICE OF
MANAGEMENT AND BUDGET".
SEC. 27. THE SECRETARY OF LABOR SHALL CONDUCT A STUDY OF THE
PROVISIONS OF THE ACT "5 USC 8101 NOTE." AND THE PROGRAMS THEREUNDER,
WHICH SHALL INCLUDE, BUT IS NOT NECESSARILY LIMITED TO--,
(1) SUCH HEARINGS, RESEARCH, AND OTHER ACTIVITIES AS THE
SECRETARY OF LABOR DEEMS NECESSARY IN ORDER TO ENABLE HIM TO
FORMULATE APPROPRIATE RECOMMENDATIONS,
(2) SPECIFIC EXAMINATION OF THE NEED OF GRANTING THE SECRETARY
OF LABOR THE AUTHORITY TO INCREASE THE ALLOWANCE FOR SERVICES OF
ATTENDANTS UNDER SECTION 8111(A) OF THE ACT "ANTE, P. 1145." ABOVE
THE MAXIMUM AMOUNT FIXED UNDER SUCH SECTION WHERE EXCEPTIONAL
CIRCUMSTANCES EXIST,
(3) AN EXAMINATION AND EVALUATION OF THE EFFECTIVENESS OF THE
ACT, AND
(4) RECOMMENDATIONS REGARDING SURVIVOR BENEFITS.
THE SECRETARY OF LABOR SHALL REPORT THE RESULTS OF SUCH STUDY, TOGETHER
WITH HIS FINDINGS AND RECOMMENDATIONS, TO THE CONGRESS NOT LATER THAN 12
MONTHS AFTER THE DATE OF THE ENACTMENT OF THIS ACT.
SEC. 28. (A) EXCEPT AS OTHERWISE PROVIDED BY THIS SECTION THIS ACT
SHALL TAKE EFFECT ON THE DATE OF ENACTMENT AND BE APPLICABLE TO ANY
INJURY OR DEATH OCCURRING ON OR AFTER SUCH EFFECTIVE DATE. THE
AMENDMENTS MADE BY SECTIONS 1 (B) AND (C), 2, 3, 7, (A) AND (B), 8 (A)
AND (B), 9, 16 (A) AND (B), 17, 19, 20, 21, 22, 24, AND 25 SHALL BE
APPLICABLE TO CASES WHERE THE INJURY OR DEATH OCCURRED PRIOR TO THE DATE
TO ENACTMENT BUT THE PROVISIONS OF THESE SECTIONS SHALL BE APPLICABLE
ONLY TO A PERIOD BEGINNING ON OR AFTER THE DATE OF ENACTMENT. "5 USC
8101 NOTE."
(B) SECTION 11 OF THIS ACT SHALL BECOME EFFECTIVE 60 DAYS FROM
ENACTMENT AND BE APPLICABLE TO ANY UNJURY OCCURRING ON OR AFTER SUCH
EFFECTIVE DATE. "5 USC 8118 NOTE."
LEGISLATIVE HISTORY:
HOUSE REPORT NO. 93 - 1025 (COMM. ON EDUCATION AND LABOR).
SENATE REPORT NO. 93 - 1081 (COMM. ON LABOR AND PUBLIC WELFARE).
CONGRESSIONAL RECORD, VOL. 120 (1974):
MAY 7, CONSIDERED AND PASSED HOUSE.
AUG. 12, CONSIDERED AND PASSED SENATE, AMENDED.
AUG. 19, HOUSE CONCURRED IN SENATE AMENDMENTS.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, VOL. 10, NO. 37:
SEPT. 8, PRESIDENTIAL STATEMENT.
PUBLIC LAW 93-415, 88 STAT 1109 JUVENILE JUSTICE AND DELINQUENCY
PREVENTION ACT OF 1974.
BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE
UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT THIS ACT MAY BE
CITED AS THE "JUVENILE AND DELINQUENCY PREVENTION ACT OF 1974". "42 USC
5601 NOTE."
FINDINGS "42 USC 5601."
SEC. 101. (A) THE CONGRESS HEREBY FINDS THAT--,
(1) JUVENILES ACCOUNT FOR ALMOST HALF THE ARRESTS FOR SERIOUS
CRIMES IN THE UNITED STATES TODAY;
(2) UNDERSTAFFED, OVERCROWDED JUVENILE COURTS, PROBATION
SERVICES, AND CORRECTIONAL FACILITIES ARE NOT ABLE TO PROVIDE
INDIVIDUALIZED JUSTICE OR EFFECTIVE HELP;
(3) PRESENT JUVENILE COURTS, FOSTER AND PROTECTIVE CARE
PROGRAMS, AND SHELTER FACILITIES ARE INADEQUATE TO MEET THE NEEDS
OF THE COUNTLESS, ABANDONED, AND DEPENDENT CHILDREN, WHO, BECAUSE
OF THIS FAILURE TO PROVIDE EFFECTIVE SERVICES, MAY BECOME
DELINQUENTS;
(4) EXISTING PROGRAMS HAVE NOT ADEQUATELY RESPONDED TO THE
PARTICULAR PROBLEMS OF THE INCREASING NUMBERS OF YOUNG PEOPLE WHO
ARE ADDICTED TO OR WHO ABUSE DRUGS, PARTICULARLY NONPIATE OR
POLYDRUG ABUSERS;
(5) JUVENILE DELINQUENCY CAN BE PREVENTED THROUGH PROGRAMS
DESIGNED TO KEEP STUDENTS IN ELEMENTARY AND SECONDARY SCHOOLS
THROUGH THE PREVENTION OF UNWARRANTED AND ARBITRARY SUSPENSIONS
AND EXPULSIONS;
(6) STATES AND LOCAL COMMUNITIES WHICH EXPERIENCE DIRECTLY THE
DEVASTATING FAILURES OF THE JUVENILE JUSTICE SYSTEM DO NOT
PRESENTLY HAVE SUFFICIENT TECHNICAL EXPERTISE OR ADEQUATE
RESOURCES TO DEAL COMPREHENSIVELY WITH THE PROBLEMS OF JUVENILE
DELINQUENCY; AND
(7) EXISTING FEDERAL PROGRAMS HAVE NOT PROVIDED THE DIRECTION,
COORDINATION, RESOURCES, AND LEADERSHIP REQUIRED TO MEET THE
CRISIS OF DELINQUENCY.
(B) CONGRESS FINDS FURTHER THAT THE HIGH INCIDENCE OF DELINQUENCY IN
THE UNITED STATES TODAY RESULTS IN ENORMOUS ANNUAL COST AND IMMEASURABLE
LOSS OF HUMAN LIFE, PERSONAL SECURITY, AND WASTED HUMAN RESOURCES AND
THAT JUVENILE DELINQUENCY CONSTITUTES A GROWING THREAT TO THE NATIONAL
WELFARE REQUIRING IMMEDIATE AND COMPREHENSIVE ACTION BY THE FEDERAL
GOVERNMENT TO REDUCE AND PREVENT DELINQUENCY.
PURPOSE "42 USC 5602."
SEC. 102. (A) IT IS THE PURPOSE OF THIS ACT--,
(1) TO PROVIDE FOR THE THOROUGH AND PROMPT EVALUATION OF ALL
FEDERALLY ASSISTED JUVENILE DELINQUENCY PROGRAMS;
(2) TO PROVIDE TECHNICAL ASSISTANCE TO PUBLIC AND PRIVATE
AGENCIES, INSTITUTIONS, AND INDIVIDUALS IN DEVELOPING AND
IMPLEMENTING JUVENILE DELINQUENCY PROGRAMS;
(3) TO ESTABLISH TRAINING PROGRAMS FOR PERSONS, INCLUDING
PROFESSIONALS, PARAPROFESSIONALS, AND VOLUNTEERS, WHO WORK WITH
DELINQUENTS OR POTENTIAL DELINQUENTS OR WHOSE WORK OR ACTIVITIES
RELATE TO JUVENILE DELINQUENCY PROGRAMS;
(4) TO ESTABLISH A CENTRALIZED RESEARCH EFFORT ON THE PROBLEMS
OF JUVENILE DELINQUENCY, INCLUDING AN INFORMATION CLEARINGHOUSE TO
DISSEMINATE THE FINDINGS OF SUCH RESEARCH AND ALL DATA RELATED TO
JUVENILE DELINQUENCY;
(5) TO DEVELOP AND ENCOURAGE THE IMPLEMENTATION OF NATIONAL
STANDARDS FOR THE ADMINISTRATION OF JUVENILE JUSTICE, INCLUDING
RECOMMENDATIONS FOR ADMINISTRATIVE, BUDGETARY, AND LEGISLATIVE
ACTION AT THE FEDERAL, STATE, AND LOCAL LEVEL TO FACILITATE THE
ADOPTION OF SUCH STANDARDS;
(6) TO ASSIST STATES AND LOCAL COMMUNITIES WITH RESOURCES TO
DEVELOP AND IMPLEMENT PROGRAMS TO KEEP STUDENTS IN ELEMENTARY AND
SECONDARY SCHOOLS AND TO PREVENT UNWARRANTED AND ARBITRARY
SUSPENSIONS AND EXPULSIONS; AND
(7) TO ESTABLISH A FEDERAL ASSISTANCE PROGRAM TO DEAL WITH THE
PROBLEMS OF RUNAWAY YOUTH.
(B) IT IS THEREFORE THE FURTHER DECLARED POLICY OF CONGRESS TO
PROVIDE THE NECESSARY RESOURCES, LEADERSHIP, AND COORDINATION (1) TO
DEVELOP AND IMPLEMENT EFFECTIVE METHODS OF PREVENTING AND REDUCING
JUVENILE DELINQUENCY; (2) TO DEVELOP AND CONDUCT EFFECTIVE PROGRAMS TO
PREVENT DELINQUENCY, TO DIVERT JUNEVILES FROM THE TRADITIONAL JUVENILE
JUSTICE SYSTEM AND TO PROVIDE CRITICALLY NEEDED ALTERNATIVES TO
INSTITUTIONALIZATION; (3) TO IMPROVE THE QUALITY OF JUVENILE JUSTICE IN
THE UNITED STATES; AND (4) TO INCREASE THE CAPACITY OF STATE AND LOCAL
GOVERNMENTS AND PUBLIC AND PRIVATE AGENCIES TO CONDUCT EFFECTIVE
JUVENILE JUSTICE AND DELINQUENCY PREVENTION AND REHABILITATION PROGARMS
AND TO PROVIDE RESEARCH, EVALUATION, AND TRAINING SERVICES IN THE FIELD
OF JUVENILE DELINQUENCY PREVENTION.
DEFINITIONS "42 USC 5603."
SEC. 103. FOR PURPOSES OF THIS ACT--,
(1) THE TERM "COMMUNITY BASED" FACILITY, PROGRAM, OR SERVICE
MEANS A SMALL, OPEN GROUP HOME OR OTHER SUITABLE PLACE LOCATED
NEAR THE JUVENILE'S HOME OR FAMILY PROGRAMS OF COMMUNITY
SUPERVISION AND SERVICE WHICH MAINTAIN COMMUNITY AND CONSUMER
PARTICIPATION IN THE PLANNING OPERATION, AND EVALUATION OF THEIR
PROGRAMS WHICH MAY INCLUDE, BUT ARE NOT LIMITED TO, MEDICAL,
EDUCATIONAL, VOCATIONAL, SOCIAL, AND PSYCHOLOGICAL GUIDANCE,
TRAINING, COUNSELING, ALCOHOLISM TREATMENT, DRUG TREATMENT, AND
OTHER REHABILITATIVE SERVICES;
(2) THE TERM "FEDERAL JUVENILE DELINQUENCY PROGRAM" MEANS ANY
JUVENILE DELINQUENCY PROGRAM WHICH IS CONDUCTED, DIRECTLY, OR
INDIRECTLY, OR IS ASSISTED BY ANY FEDERAL DEPARTMENT OR AGENCY,
INCLUDING ANY PROGRAM FUNDED UNDER THIS ACT;
(3) THE TERM "JUNVENILE DELINQUENCY PROGRAM" MEANS ANY PROGARM
OR ACTIVITY RELATED TO JUVENILE DELINQUENCY PREVENTION, CONTROL,
DIVERSION, TREATMENT, REHABILITATION, PLANNING, EDUCATION,
TRAINING, AND RESEARCH, INCLUDING DRUG AND ALCOHOL ABUSE PROGRAMS;
THE IMPROVEMENT OF THE JUVENILE JUSTICE SYSTEM; AND ANY PROGRAM
OR ACTIVITY FOR NEGLECTED, ABANDONED, OR DEPENDENT YOUTH AND OTHER
YOUTH WHO ARE IN DANGER OF BECOMING DELINQUENT;
(4) THE TERM "LAW ENFORCEMENT ASSISTANCE ADMINISTRATION" MEANS
THE AGENCY ESTABLISHED BY SECTION 101 (A) OF THE OMNIBUS CRIME
CONTROL AND SAFE STREETS ACT OF 1968, AS AMENDED; "42 USC 3711."
(5) THE TERM "ADMINISTRATOR" MEANS THE AGENCY HEAD DESIGNATED
BY SECTION 101 (B) OF THE OMNIBUS CRIME CONTROL AND SAFE STREETS
ACT OF 1968, AS AMENDED; "42 USC 3711."
(6) THE TERM "LAW ENFORCEMENT AND CRIMINAL JUSTICE" MEANS ANY
ACTIVITY PERTAINING TO CRIME PREVENTION, CONTROL, OR REDUCTION OR
THE ENFORCEMENT OF THE CRIMINAL LAW, INCLUDING, BUT NOT LIMITED TO
POLICE EFFORTS TO PREVENT, CONTROL, OR REDUCE CRIME OR TO
APPREHEND CRIMINALS, ACTIVITIES OR COURTS HAVING CRIMINAL
JURISDICTION AND RELATED AGENCIES (INCLUDING PROSECUTORIAL AND
DEFENDER SERVICES, ACTIVITIES OF CORRECTIONS, PROBATION, OR PAROLE
AUTHORITIES, AND PROGRAMS RELATING TO THE PREVENTION, CONTROL, OR
REDUCTION OF JUVENILE DELINQUENCY OR NARCOTIC ADDICTION;
(7) THE TERM "STATE" MEANS ANY STATE OF THE UNITED STATES, THE
DISTRICT OF COLUMBIA, THE COMMONWEALTH OF PUERTO RICO, THE TRUST
TERRITORY OF THE PACIFIC ISLANDS, AND ANY TERRITORY OR POSSESSION
OF THE UNITED STATES;
(8) THE TERM "UNIT OF GENERAL LOCAL GOVERNMENT" MEANS ANY CITY,
COUNTY, TOWNSHIP, TOWN, BOROUGH, PARISH, VILLAGE, OR OTHER GENERAL
PURPOSE POLITICAL SUBDIVISION OF A STATE, AN INDIAN TRIBE WHICH
PERFORMS LAW ENFORCEMENT FUNCTIONS AS DETERMINED BY THE SECRETARY
OF THE INTERIOR, OR, FOR THE PURPOSE OF ASSISTANCE ELIGIBILITY,
ANY AGENCY OF THE DISTRICT OF COLUMBIA GOVERNMENT PERFORMING LAW
ENFORCEMENT FUNCTIONS IN AND FOR THE DISTRICT OF COLUMBIA AND
FUNDS APPROPRIATED BY THE CONGRESS FOR THE ACTIVITIES OF SUCH
AGENCY MAY BE USED TO PROVIDE THE NON-FEDERAL SHARE OF THE COST OF
PROGRAMS OR PROJECTS FUNDED UNDER THIS TITLE;
(9) THE TERM "COMBINATION" AS APPLIED TO STATES OR UNITS OF
GENERAL LOCAL GOVERNMENT MEANS ANY GROUPING OR JOINING TOGETHER OF
SUCH STATES OR UNITS FOR THE PURPOSE OF PREPARING, DEVELOPING, OR
IMPLEMENTING A LAW ENFORCEMENT PLAN;
(10) THE TERM "CONSTRUCTION" MEANS ACQUISITION, EXPANSION,
REMODELING, AND ALTERATION OF EXISTING BUILDINGS, AND INITIAL
EQUIPMENT OF ANY SUCH BUILDINGS, OR ANY COMBINATION OF SUCH
ACTIVITIES (INCLUDING ARCHITECTS' FEES BUT NOT THE COST OF
ACQUISITION OF LAND FOR BUILDINGS);
(11) THE TERM "PUBLIC AGENCY" MEANS ANY STATE, UNIT OF LOCAL
GOVERNMENT, COMBINATION OF SUCH STATES OR UNITS, OR ANY
DEPARTMENT, AGENCY, OR INSTRUMENTALITY OF ANY OF THE FOREGOING;
(12) THE TERM "CORRECTIONAL INSTITUTION OR FACILITY" MEANS ANY
PLACE FOR THE CONFINEMENT OR REHABILITATION OF JUVENILE OFFENDERS
OR INDIVIDUALS CHARGED WITH OR CONVICTED OF CRIMINAL OFFENSES;
AND
(13) THE TERM "TREATMENT" INCLUDES BUT IS NOT LIMITED TO
MEDICAL, EDUCATIONAL, SOCIAL, PSYCHOLOGICAL, AND VOCATIONAL
SERVICES, CORRECTIVE AND PREVENTIVE GUIDANCE AND TRAINING, AND
OTHER REHABILITATIVE SERVICES DESIGNED TO PROTECT THE PUBLIC AND
BENEFIT THE ADDICT OR OTHER USER BY ELIMINATING HIS DEPENDENCE ON
ADDICTING OR OTHER DRUGS OR BY CONTROLLING HIS DEPENDENCE, AND HIS
SUSCEPTIBILITY TO ADDICTION OR USE.
ESTABLISHMENT OF OFFICE "42 USC 5611."
SEC. 201. (A) THERE IS HEREBY CREATED WITHIN THE DEPARTMENT OF
JUSTICE, LAW ENFORCEMENT ASSISTANCE ADMINISTRATION, THE OFFICE OF
JUVENILE JUSTICE AND DELINQUENCY PREVENTION (REFERRED TO IN THIS ACT AS
THE "OFFICE").
(B) THE PROGRAMS AUTHORIZED PURSUANT TO THIS ACT UNLESS OTHERWISE
SPECIFIED IN THIS ACT SHALL BE ADMINISTERED BY THE OFFICE ESTABLISHED
UNDER THIS SECTION.
(C) THERE SHALL BE AT THE HEAD OF THE OFFICE AN ASSISTANT
ADMINISTRATOR WHO SHALL BE NOMINATED BY THE PRESIDENT BY AND WITH THE
ADVICE AND CONSENT OF THE SENATE.
(D) THE ASSISTANT ADMINISTRATOR SHALL EXERCISE ALL NECESSARY POWERS,
SUBJECT TO THE DIRECTION OF THE ADMINISTRATOR OF THE LAW ENFORCEMENT
ASSISTANCE ADMINISTRATION.
(E) THERE SHALL BE IN THE OFFICE A DEPUTY ASSISTANT ADMINISTRATOR WHO
SHALL BE APPOINTED BY THE ADMINISTRATOR OF THE LAW ENFORCEMENT
ASSISTANCE ADMINISTRATION. THE DEPUTY ASSISTANT ADMINISTRATOR SHALL
PERFORM SUCH FUNCTIONS AS THE ASSISTANT ADMINISTRATOR FROM TIME T TIME
ASSIGNS OR DELEGATES, AND SHALL ACT AS ASSISTANT ADMINISTRATOR DURING
THE ABSENCE OR DISABILITY OF THE ASSISTANT ADMINISTRATOR OR IN THE EVENT
OF A VACANCY IN THE OFFICE OF THE ASSISTANT ADMINISTRATOR.
(F) THERE SHALL BE ESTABLISHED IN THE OFFICE A DEPUTY ASSISTANT
ADMINISTRATOR WHO SHALL BE APPOINTED BY THE ADMINISTRATOR WHOSE FUNCTION
SHALL BE TO SUPERVISE AND DIRECT THE NATIONAL INSTITUTE FOR JUNVENILE
JUSTICE AND DELINQUENCY PREVENTION ESTABLISHED UNDER SECTION 241 OF THIS
ACT. "POST, P. 1125."
(G) SECTION 5108(C) (10) OF TITLE 5, UNITED STATES CODE FIRST
OCCURENCE, IS AMENDED BY DELETING THE WORD "TWENTY-TWO" AND INSERTING IN
LIEU THEREOF THE WORD "TWENTY-FIVE".
PERSONNEL, SPECIAL PERSONNEL, EXPERTS, AND CONSULTANTS
"42 USC 5612."
SEC. 202. (A) THE ADMINISTRATOR IS AUTHORIZED TO SELECT, EMPLOY, AND
FIX THE COMPENSATION OF SUCH OFFICERS AND EMPLOYEES, INCLUDING
ATTORNEYS, AS ARE NECESSARY TO PERFORM THE FUNCTIONS VESTED IN HIM AND
TO PRESCRIBE THEIR FUNCTIONS.
(B) THE ADMINISTRATOR IS AUTHORIZED TO SELECT, APPOINT, AND EMPLOY
NOT TO EXCEED THREE OFFICERS AND TO FIX THEIR COMPENSATION AT RATES NOT
TO EXCEED THE RATE NOW OR HEREAFTER PRESCRIBED FOR GS-18 OF THE GENERAL
SCHEDULE BY SECTION 5332 OF TITLE 5 OF THE UNITED STATES CODE. "5 USC
5332 NOTE."
(C) UPON THE REQUEST OF THE ADMINISTRATOR, THE HEAD OF ANY FEDERAL
AGENCY IS AUTHORIZED TO DETAIL, ON A REIMBURSABLE BASIS, ANY OF ITS
PERSONNEL TO THE ASSISTANT ADMINISTRATOR TO ASSIST HIM IN CARRYING OUT
HIS FUNCTIONS UNDER THIS ACT.
(D) THE ADMINISTRATOR MAY OBTAIN SERVICES AS AUTHORIZED BY SECTION
3109 OF TITLE 5 OF THE UNITED STATES CODE, "80 STAT. 416." AT RATES NOT
TO EXCEED THE RATE NOW OR HEREAFTER PRESCRIBED FOR GS-18 OF THE GENERAL
SCHEDULE BY SECTION 5332 OF TITLE I OF THE UNITEDSTATES CODE. "5 USC
5332 NOTE."
VOLUNTARY SERVICE "42 USC 5613."
SEC. 203. THE ADMINISTRATOR IS AUTHORIZED TO ACCEPT AND EMPLOY, IN
CARRYING OUT THE PROVISIONS OF THIS ACT, VOLUNTARY AND UNCOMPENSATED
SERVICES NOTWITHSTANDING THE PROVISIONS OF SECTION 3679(B) OF THE
REVISED STATUTES (31 U.S.C. 665(B)).
CONCENTRATION OF FEDERAL EFFORTS "42 USC 5614."
SEC. 204. (A) THE ADMINISTRATOR SHALL IMPLEMENT OVERALL POLICY AND
DEVELOP OBJECTIVES AND PRIORITIES FOR ALL FEDERAL JUVENILE DELINQUENCY
PROGRAMS AND ACTIVITIES RELATING TO PREVENT, DIVERSION, TRAINING,
TREATMENT, REHABILITATION, EVALUATION, RESEARCH, AND IMPROVEMENT OF THE
JUVENILE JUSTICE SYSTEM IN THE UNITED STATES. IN CARRYING OUT HIS
FUNCTIONS, THE ADMINISTRATOR SHALL CONSULT WITH THE COUNCIL AND THE
NATIONAL ADVISORY COMMITTEE FOR JUVENILE JUSTICE AND DELINQUENCY
PREVENTION.
(B) IN CARRYING OUT THE PURPOSES OF THIS ACT, THE ADMINISTRATOR
SHALL--,
(1) ADVISE THE PRESIDENT THROUGH THE ATTORNEY GENERAL AS TO ALL
MATTERS RELATING TO FEDERALLY ASSISTED JUVENILE DELINQUENCY
PROGRAMS AND FEDERAL POLICIES REGARDING JUVENILE DELINQUENCY;
(2) ASSIST OPERATING AGENCIES WHICH HAVE DIRECT
RESPONSIBILITIES FOR THE PREVENTION AND TREATMENT OF JUVENILE
DELINQUENCY IN THE DEVELOPMENT AND PROMULGATION OF REGULATIONS,
GUIDELINES, REQUIREMENTS, CRITERIA, STANDARDS, PROCEDURES, AND
BUDGET REQUESTS IN ACCORDANCE WITH THE POLICIES, PRIORITIES, AND
OBJECTIVES HE ESTABLISHES;
(3) CONDUCT AND SUPPORT EVALUATIONS AND STUDIES OF THE
PERFORMANCE AND RESULTS ACHIEVED BY FEDERAL JUVENILE DELINQUENCY
PROGRAMS AND ACTIVITIES AND OF THE PROSPECTIVE PERFORMANCE AND
RESULTS THAT MIGHT BE ACHIEVED BY ALTERNATIVE PROGRAMS AND
ACTIVITIES SUPPLEMENTARY TO OR IN LIEU OF THOSE CURRENTLY BEING
ADMINISTERED;
(4) IMPLEMENT FEDERAL JUVENILE DELINQUENCY PROGRAMS AND
ACTIVITIES AMONG FEDERAL DEPARTMENTS AND AGENCIES AND BETWEEN
FEDERAL JUVENILE DELINQUENCY PROGRAMS AND ACTIVITIES AND OTHER
FEDERAL PROGRAMS AND ACTIVITIES WHICH HE DETERMINES MAY HAVE AN
IMPORTANT BEARING ON THE SUCCESS OF THE ENTIRE FEDERAL JUVENILE
DELINQUENCY EFFORT;
(5) DEVELOP ANNUALLY WITH THE ASSISTANCE OF THE ADVISORY
COMMITTEE AND SUBMIT TO THE PRESIDENT AND THE CONGRESS, AFTER THE
FIRST YEAR THE LEGISLATION IS ENACTED , PRIOR TO SEPTEMBER 30, AN
ANALYSIS AND EVALUATION OF FEDERAL JUNEVILE DELINQUENCY PROGRAMS
CONDUCTED AND ASSISTED BY FEDERAL DEPARTMENTS AND AGENCIES, THE
EXPENDITURES MADE, THE RESULTS ACHIEVED, THE PLANS DEVELOPED, AND
PROBLEMS IN THE OPERATIONS, AND COORDINATION OF SUCH PROGRAMS.
THE REPORT SHALL INCLUDE RECOMMENDATIONS FOR MODIFICATIONS IN
ORGANIZATION, MANAGEMENT, PERSONNEL, STANDARDS BUDGET REQUESTS,
AND IMPLEMENTATION PLANS NECESSARY TO INCREASE THE EFFECTIVENESS
OF THESE PROGRAMS;
(6) DEVELOP ANNUALLY WITH THE ASSISTANCE OF THE ADVISORY
COMMITTEE AND SUBMIT TO THE PRESIDENT AND THE CONGRESS, AFTER THE
FIRST YEAR THE LEGISLATION IS ENACTED, PRIOR TO MARCH 1, A
COMPREHENSIVE PLAN FOR FEDERAL JUVENILE DELINQUENCY PROGRAMS, WITH
PARTICULAR EMPHASIS ON THE PREVENTION OF JUVENILE DELINQUENCY AND
THE DEVELOPMENT OF PROGRAMS AND SERVICES EHICH WILL ENCOURAGE
INCREASED DIVERSION OF JUVENILES FROM THE TRADITIONAL JUVENILE
JUSTICE SYSTEM; AND
(7) PROVIDE TECHNICAL ASSISTANCE TO FEDERAL, STATE, AND LOCAL
GOVERNMENTS, COURTS, PUBLIC AND PRIVATE AGENCIES, INSTITUTIONS,
AND INDIVIDUALS, IN THE PLANNING, ESTABLISHMENT, FUNDING ,
OPERATION, OR EVALUATION OF JUVENILE DELINQUENCY PROGRAMS.
(C) THE PRESIDENT SHALL, NO LATER THAN NINETY DAYS AFTER RECEIVING
EACH ANNUAL REPORT UNDER SUBSECTION (B) (5), SUBMIT A REPORT TO THE
CONGRESS AND TO THE COUNCIL CONTAINING A DETAILED STATEMENT OF ANY
ACTION TAKEN OR ATICIP ATED WITH RESPECT TO RECOMMENDATION MADE BY EACH
SUCH ANNUAL REPORT.
(B) (1) THE FIRST ANNUAL REPORT SUBMITTED TO THE PRESIDENT AND THE
CONGRESS BY THE ADMINISTRATOR UNDER SUBSECTION (B) (5) SHA CONTAIN, IN
ADDITION TO INFORMATION REQUIRED TO SUBSECTION (B) (5), A DETAILED
STATEMENT OF CRITERIA DEVELOPED BY THE ADMINISTRATOR FOR IDENTIFYING THE
CHARACTERISTICS OF JUVENILE DELINQUENCY, JUVENILE DELINQUENCY
PREVENTION, DIVERSION OF YOUTHS FROM THE JUVENILE JUSTICE SYSTEM, AND
THE TRAINING, TREATMENT, AND REHABILITATION OF JUVENILE DELINQUENTS.
(2) THE SECOND SUCH ANNUAL REPORT SHALL CONTAIN, IN ADDITION TO
INFORMATION REQUIRED BY SUBSECTION (B) (5), AN IDENTIFICATION OF FEDERAL
PROGRAMS WHICH ARE RELATED TO JUVENILE DELINQUENCY PREVENTION OR
TREATMENT, TOGETHER WITH A STATEMENT OF THE MONEYS EXPENDED FOR EACH
SUCH PROGRAM DURING THE MOST RECENT COMPLETE FISCAL YEAR. SUCH
IDENTIFICATION SHALL BE MADE BY THE ADMINISTRATOR THROUGH THE USE OF
CRITERIA DEVELOPED UNDER PARAGRAPH (1).
(E) THE THIRD SUCH ANNUAL REPORT SUBMITTED TO THE PRESIDENT AND THE
CONGRESS BY THE ADMINISTRATOR UNDER SUBSECTION (B) (6) SHALL CONTAIN, IN
ADDITION TO THE COMPREHENSIVE PLAN REQUIRED BY SUBSECTION (B) (6), A
DETAILED STATEMENT OF PROCEDURE TO BE USED WITH RESPECT TO THE
SUBMISSION OF JUVENILE DELINQUENCY DEVELOPMENT STATEMENTS TO THE
ADMINISTRATOR BY FEDERAL AGENCIES UNDER SUBSECTION ("1"). SUCH
STATEMENT SUBMITTED BY THE ADMINISTRATOR SHALL INCLUDE A DESCRIPTION OF
INFORMATION, DATA, AND ANALYSES WHICH SHALL BE CONTAINED IN EACH SUCH
DEVELOPMENT STATEMENT.
(F) THE ADMINISTRATOR MAY REQUIRE, THROUGH APPROPRIATE AUTHORITY,
DEPARTMENTS AND AGENCIES ENGAGED IN ANY ACTIVITY INVOLVING ANY FEDERAL
JUVENILE DELINQUENCY PROGRAM TO PROVIDE HIM WITH SUCH INFORMATION AND
REPORTS, AND TO CONDUCT SUCH STUDIES AND SURVEYS, AS HE MAY DEEM TO BE
NECESSARY TO CARRY OUTTHE PURPOSES OF THIS PART.
(G) THE ADMINISTRATOR MAY DELEGATE ANY OF HIS FUNCTIONS UNDER THIS
PART, EXCEPT THE MAKING OF REGULATIONS, TO ANY OFFICER OR EMPLOYEE OFJ
THE ADMINISTRATION.
(H) THE ADMINISTRATOR IS AUTHORIZED TO UTILIZE THE SERVICES AND
FACILITIES OF ANY AGENCY OF THE FEDERAL GOVERNMENT AND OF ANY OTHER
PUBLIC AGENCY OR INSTITUTION IN ACCORDANCE WITH APPROPRIATE AGREEMENTS,
AND TO PAY FOR SUCH SERVICES EITHER IN ADVANCE OR BY WAY OF
REIMBURSEMENT AS MAY BE AGREED UPON.
(I) THE ADMINISTRATOR IS AUTHORIZED TO TRANSFER FUNDS APPROPRIATED
UNDER THIS TITLE TO ANY AGENCY OF THE FEDERAL GOVERNMENT TO DEVELOP OR
DEMONSTRATE NEW METHODS IN JUVENILE DELINQUENCY PREVENTION AND
REHABILITATION AND TO SUPPLEMENT EXISTING DELINQUENCY PREVENTION AND
REHABILITATION PROGRAMS WHICH THE ASSSISTANT ADMINISTRATOR FINDS TO BE
EXCEPTIONALLY EFFECTIVE OR FOR WHICH HE FINDS THERE EXISTS EXCEPTIONAL
NEED.
(J) THE ADMINISTRATOR IS AUTHORIZED TO MAKE GRANTS TO, OR ENTER INTO
CONTRACTS WITH, ANY PUBLIC OR PRIVATE AGENCY, INSTITUTION, OR INDIVIDUAL
TO CARRY OUT THE PURPOSES OF THIS PART.
(K) ALL FUNCTIONS OF THE ADMINISTRATOR UNDER THIS PART SHALL BE
COORDINATED AS APPROPRIATE WITH THE FUNCTIONS OF THE SECRETARY OF THE
DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE UNDER THE JUVENILE
DELINQUENCY PREVENTION ACT (42 U.S.C. 3801 ET. SEQ.).
(I) (1) THE ADMINISTRATOR SHALL REQUIRE THROUGH APPROPRIATE AUTHORITY
EACH FEDERAL AGENCY WHICH ADMINISTERS A FEDERAL JUVENILE DELINQUENCY
PROGRAM WHICH MEETS ANY CRITERION DEVELOPED BY THE ADMINISTRATOR UNDER
SECTION 204 (D) (1) TO SUBMIT ANNUALLY TO THE COUNCIL A JUVENILE
DELINQUENCY DEVELOPMENT STATEMENT. SUCH STATEMENT SHALL BE IN ADDITION
TO ANY INFORMATION, REPORT, STUDY, OR SURVEY WHICH THE ADMINISTRATOR MAY
REQUIRE UNDER SECTION 204 (F).
(2) EACH JUVENILE DELINQUENCY DEVELOPMENT STATEMENT SUBMITTED TO THE
ADMINISTRATOR UNDER SUBSECTION ("1") SHALL BE SUBMITTED IN ACCORDANCE
WITH PROCEDURES ESTABLISHED BY THE ADMINISTRATOR UNDER SECTION 204 (E)
AND SHALL CONTAIN SUCH INFORMATION, DATA, AND ANALYSES AS THE
ADMINISTRATOR MAY REQUIRE UNDER SECTION 204 (E). SUCH ANALYSES SHALL
INCLUDE AN ANALYSIS OF THE EXTENT TO WHICH THE JUVENILE DELINQUENCY
PROGRAM OF THE FEDERAL AGENCY SUBMITTING SUCH DEVELOPMENT STATEMENT
CONFORMS WITH AND FURTHER FEDERAL JUVENILE DELINQUENCY PREVENTION AND
TREATMENT GOALS AND POLICIES.
(3) THE ADMINISTRATOR SHALL REVIEW AND COMMENT UPON EACH JUVENILE
DELINQUENCY DEVELOPMENT STATEMENT TRANSMITTED TO HIM UNDER SUBSECTION
("1"). SUCH DEVELOPMENT STATEMENT, TOGETHER WITH THE COMMENTS OF THE
ADMINISTRATOR, SHALL BE INCLUDED BY THE FEDERAL AGENCY INVOLVED IN EVERY
RECOMMDENDATION OR REQUEST MADE BY SUCH AGENCY FOR FEDERAL LEGISLATION
WHICH SIGNIFICANTLY AFFECTS JUVENILE DELINQUENCY PREVENTION AND
TREATMENT.
JOINT FUNDING "42 USC 5615."
SEC. 205. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, WHERE FUNDS
ARE MADE AVAILABLE BY MORE THAN ONE FEDERAL AGENCY TO BE USED BY ANY
AGENCY, ORGANIZATION, INSTITUTION, OR INDIVIDUAL TO CARRY OUT A FEDERAL
JUVENILE DELINQUENCY PROGRAM OR ACTIVITY, ANY ONE OF THE FEDERAL
AGENCIES PROVIDING FUNDS MAY BE REQUESTED BY THE ADMINISTRATOR TO ACT
FOR ALL IN ADMINISTERING THE FUNDS ADVANCED. IN SUCH CASES, A SINGLE
NON-FEDERAL SHARE REQUIREMENT MAY BE ESTABLISHED ACCORDING TO THE
PROPORTION OF FUNDS ADVANCED BY EACH FEDERAL AGENCY, AND THE
ADMINISTRATOR MAY ORDER ANY SUCH AGENCY TO WAIVE ANY TECHNICAL GRANT OR
CONTRACT REQUIREMENT (AS DEFINED IN SUCH REGULATIONS) WHICH IS
INCONSISTENT WITH THE SIMILAR REQUIREMENT OF THE ADMINISTERING AGENCY OR
WHICH THE ADMINISTERING AGENCY DOES NOT IMPOSE.
COORDINATING COUNCIL ON JUVENILE JUSTICE AND DELINQUENCY
PREVENTION "42 USC 5616."
SEC. 206. (A) (1) THERE IS HEREBY ESTABLISHED, AS AN INDEPENDENT
ORGANIZATION IN THE EXECUTIVE BRANCH OF THE FEDERAL GOVERNMENT A
COORDINATING COUNCIL ON JUVENILE JUSTICE AND DELINQUENCY PREVENTION
(HEREINAFTER REFERRED TO AS THE "COUNCIL") COMPOSED OF THE ATTORNEY
GENERAL, THE SECRETARY OF HEALTH, EDUCATION, AND WELFARE, THE SECRETARY
OF LABOR, THE DIRECTOR OF THE SPECIAL ACTION OFFICE FOR DRUG ABUSE
PREVENTION, THE SECRETARY OF HOUSING AND URBAN DEVELOPMENT, OR THEIR
RESPECTIVE DESIGNEES, THE ASSISTANT ADMINISTRATOR OF THE OFFICE OF
JUVENILE JUSTICE AND DELINQUENCY PREVENTION, THE DEPUTY ASSISTANT
ADMINISTRATOR OF THE INSTITUTE FOR JUVENILE JUSTICE AND DELINQUENCY
PREVENTION, AND REPRESENTATIVES OF SUCH OTHER AGENCIES AS THE PRESIDENT
SHALL DESIGNATE.
(2) ANY INDIVIDUAL DESIGNATED UNDER THIS SECTION SHALL BE SELECTED
FORM INDIVIDUALS WHO EXERCISE SIGNIFICANT DECISIONMAKING AUTHORITY IN
THE FEDERAL AGENCY INVOLVED.
(B) THE ATTORNEY GENERAL SHALL SERVE AS CHAIRMAN OF THE COUNCIL. THE
ASSISTANT ADMINISTRATOR OF THE OFFICE OF JUVENILE JUSTICE AND
DELINQUENCY PREVENTION SHALL SERVE AS VICE CHAIRMAN OF THE COUNCIL. THE
VICE CHAIRMAN SHALL ACT AS CHAIRMAN IN THE ABSENCE OF THE CHAIRMAN.
(C) THE FUNCTION OF THE COUNCIL SHALL BE TO COORDINATE ALL FEDERAL
JUVENILE DELINQUENCY PROGRAMS. THE COUNCIL SHALL MAKE RECOMMENDATIONS
TO THE ATTORNEY GENERAL AND THE PRESIDENT AT LEAST ANNUALLY WITH RESPECT
TO THE COORDINATION OF OVERALL POLICY AND DEVELOPMENT OF OBJECTIVES AND
PRIORITIES FOR ALL FEDERAL JUVENILE DELINQUENCY PROGRAMS AND ACTIVITIES.
(D) THE COUNCIL SHALL MEET A MINIMUM OF SIX TIMES PER YEAR AND A
DESCRIPTION OF THE ACTIVITIES OF THE COUNCIL SHALL BE INCLUDED IN THE
ANNUAL REPORT REQUIRED BY SECTION 204 (B) (5) OF THIS TITLE. "ANTE, P.
1114."
(E) (1) THE CHAIRMAN SHALL, WITH THE APPROVAL OF THE COUNCIL, APPOINT
AN EXECUTIVE SECRETARY OF THE COUNCIL.
(2) THE EXECUTIVE SECRETARY SHALL BE RESPONSIBLE FOR THE DAY-TO- DAY
ADMINISTRATION OF THE COUNCIL.
(3) THE EXECUTIVE SECRETARY MAY, WITH THE APPROVAL OF THE COUNCIL,
APPOINT SUCH PERSONNEL AS HE CONSIDERS NECESSARY TO CARRY OUT THE
PURPOSES OF THIS TITLE.
(F) MEMBERS OF THE COUNCIL WHO ARE EMPLOYED BY THE FEDERAL GOVERNMENT
FULL TIME SHALL BE REIMBURSED FOR TRAVEL, SUBSISTENCE, AND OTHER
NECESSARY EXPENSES INCURRED BY THEM IN CARRYING OUT THE DUTIES OF THE
COUNCIL.
(G) TO CARRY OUT THE PURPOSES OF THIS SECTION THERE IS AUTHORIZED TO
BE APPROPRIATED SUCH SUMS AS MAY BE NECESSARY.
ADVISORY COMMITTEE
SEC. 207. (A) THERE IS HEREBY ESTABLISHED A NATIONAL ADVISORY
COMMITTEE FOR JUVENILE JUSTICE AND DELINQUENCY PREVENTION (HEREINAFTER
REFERRED TO AS THE "ADVISORY COMMITTEE") WHICH SHALL CONSIST OF
TWENTY-ONE MEMBERS.
(B) THE MEMBERS OF THE COORDINATING COUNCIL OR THEIR RESPECTIVE
DESIGNEES SHALL BE EX OFFICIO MEMBERS OF THE COMMITTEE.
(C) THE REGULAR MEMBERS OF THE ADVISORY COMMITTEE SHALL BE APPOINTED
BY THE PRESIDENT FROM PERSONS WHO BY VIRTUE OF THEIR TRAINING OR
EXPERIENCE HAVE SPECIAL KNOWLEDGE CONCERNING THE PREVENTION AND
TREATMENT OF JUVENILE DELINQUENCY OR THE ADMINISTRATION OF JUVENILE
JUSTICE, SUCH AS JUVENILE OR FAMILY COURT JUDGES; PROBATION,
CORRECTIONAL, OR LAW ENFORCEMENT PERSONNEL; AND REPRESENTATIVES OF
PRIVATE VOLUNTARY ORGANIZATIONS AND COMMUNITY-BASED PROGRAMS. THE
PRESIDENT SHALL DESIGNATE THE CHAIRMAN. A MAJORITY OF THE MEMBERS OF
THE ADVISORY COMMITTEE, INCLUDING THE CHAIRMAN, SHALL NOT BE FULL-TIME
EMPLOYEES OF FEDERAL, STATE, OR LOCAL GOVERNMENTS. AT LEAST SEVEN
MEMBERS SHALL NOT HAVE ATTAINED TWENTY-SIX YEARS OF AGE ON THE DATE OF
THEIR APPOINTMENT.
(D) MEMBERS APPOINTED BY THE PRESIDENT TO THE COMMITTEE SHALL SERVE
FOR TERMS OF FOUR YEARS AND SHALL BE ELIGIBLE FOR REAPPOINTMENT EXCEPT
THAT FOR THE FIRST COMPOSITION OF THE ADVISORY COMMITTEE, ONE- THIRD OF
THESE MEMBERS SHALL BE APPOINTED TO ONE-YEAR TERMS, ONE-THIRD TO
TWO-YEAR TERMS, AND ONE-THIRD TO THREE-YEAR TERMS; THEREAFTER EACH TERM
SHALL BE FOUR YEARS. SUCH MEMBERS SHALL BE APPOINTED WITHIN NINETY DAYS
AFTER THE DATE OF THE ENACTMENT OF THIS TITLE. ANY MEMBERS APPOINTED TO
FILL A VACANCY OCCURRING PRIOR TO THE EXPIRATION OF THE TERM FOR WHICH
HIS PREDECESSOR WAS APPOINTED, SHALL BE APPOINTED FOR THE REMAINDER OF
SUCH TERM.
DUTIES OF THE ADVISORY COMMITTEE
SEC. 208. (A) THE ADVISORY COMMITTEE SHALL MEET AT THE CALL OF THE
CHAIRMAN, BUT NOT LESS THAN FOUR TIMES A YEAR.
(B) THE ADVISORY COMMITTEE SHALL MAKE RECOMMENDATIONS TO THE
ADMINISTRATOR AT LEAST ANNUALLY WITH RESPECT TO PLANNING, POLICY,
PRIORITIES, OPERATIONS, AND MANAGEMENT OF ALL FEDERAL JUVENILE
DELINQUENCY PROGRAMS.
(C) THE CHAIRMAN MAY DESIGNATE A SUBCOMMITTEE OF THE MEMBERS OF THE
ADVISORY COMMITTEE TO ADVISE THE ADMINISTRATOR ON PARTICULAR FUNCTIONS
OR ASPECTS OF THE WORK OF THE ADMINISTRATION.
(D) THE CHAIRMAN SHALL DESIGNATE A SUBCOMMITTEE OF FIVE MEMBERS OF
THE COMMITTEE TO SERVE, TOGETHER WITH THE DIRECTOR OF THE NATIONAL
INSTITUTE OF CORRECTIONS, AS MEMBERS OF AN ADVISORY COMMITTEE FOR THE
NATIONAL INSTITUTE FOR JUVENILE JUSTICE AND DELINQUENCY PREVENTION TO
PERFORM THE FUNCTION SET FORTH IN SECTION 245 OF THIS TITLE "POST, P.
1127."
(E) THE CHAIRMAN SHALL DESIGNATE A SUBCOMMITTEE OF FIVE MEMBERS OF
THE COMMITTEE TO SERVE AS AN ADVISORY COMMITTEE TO THE AMINISTRATOR ON
STANDARDS FOR THE ADMINISTRATION OF JUVENILE JUSTICE TO PERFORM THE
FUNCTIONS SET FORTH IN SECTION 247 OF THIS TITLE.
(F) THE CHAIRMAN, WITH THE APPROVAL OF THE COMMITTEE, SHALL APPOINT
SUCH PERSONNEL AS ARE NECESSARY TO CARRY OUT THE DUTIES OF THE ADVISORY
COMMITTEE.
COMPENSATION AND EXPENSES "42 USC 5619."
SEC. 209. (A) MEMBERS OF THE ADVISORY COMMITTEE WHO ARE EMPLOYED BY
THE FEDERAL GOVERNMENT FULL TIME SHALL SERVE WITHOUT COMPENSATION BUT
SHALL BE REIMBURSED FOR TRAVEL, SUBSISTENCE, AND OTHER NECESSARY
EXPENSES INCURRED BY THEM IN CARRYING OUT THE DUTIES OF THE ADVISORY
COMMITTEE.
(B) MEMBERS OF THE ADVISORY COMMITTEE NOT EMPLOYED FULL TIME BY THE
FEDERAL GOVERNMENT SHALL RECEIVE COMPENSATION AT A RATE NOT TO EXCEED
THE RATE NOW OR HEREAFTER PRESCRIBED FOR GS-18 OF THE GENERAL SCHEDULE
BY SECTION 5332 OF TITLE 5 OF THE UNITED STATES CODE. "5 USC 5332
NOTE." INCLUDING TRAVELTIME FOR EACH DAY THEY ARE ENGAGED IN THE
PERFORMANCE OF THEIR DUTIES AS MEMBERS OF THE ADVISORY COMMITTEE.
MEMBERS SHALL BE ENTITLED TO REIMBURSEMENT FOR TRAVEL, SUBSISTENCE, AND
OTHER NECESSARY EXPENSES INCURRED BY THEM IN CARRYING OUT THE DUTIES OF
THE ADVISORY COMMITTEE.
SEC. 221. THE ADMINISTRATOR IS AUTHORIZED TO MAKE GRANTS TO STATES
AND LOCAL GOVERNMENTS TO ASSIST THEM IN PLANNING, ESTABLISHING,
OPERATING, COORDINATING, AND EVALUATING PROJECTS DIRECTLY OR THROUGH
CONTRACTS WITH PUBLIC AND PRIVATE AGENCIES FOR THE DEVELOPMENT OF MORE
EFFECTIVE EDUCATION, TRAINING, RESEARCH, PREVENTION, DIVERSION,
TREATMENT, AND REHABILITATION PROGRAMS IN THE AREA OF JUVENILE
DELINQUENCY AND PROGRAMS TO IMPROVE THE JUNVENILE JUSTICE SYSTEM.
ALLOCATION "42 USC 5632."
SEC. 222. (A) IN ACCORDANCE WITH REGULATIONS PROMULGATED UNDER THIS
PART, FUNDS SHALL BE ALLOCATED ANNUALLY AMONG THE STATES ON THE BASIS OF
RELATIVE POPULATION OF PEOPLE UNDER AGE EIGHTEEN. NO SUCH ALLOTMENT TO
ANY STATE SHALL BE LESS THAN $200,000, EXCEPT THAT FOR THE VIRGIN
ISLANDS, GUAM, AMERICAN SAMOA, AND THE TRUST TERRITORY OF THE PACIFIC
ISLANDS NO ALLOTMENT SHALL BE LESS THAN $50,000.
(B) EXCEPT FOR FUNDS APPROPRIATED FOR FISCAL YEAR 1975, IF ANY AMOUNT
SO ALLOTED REMAINS UNOBLIGATED AT THE END OF THE FISCAL YEAR, SUCH FUNDS
SHALL BE REALLOCATED IN A MANNER EQUITABLE AND CONSISTENT WITH THE
PURPOSE OF THIS PART. FUNDS APPROPRIATED FOR FISCAL YEAR 1975 MAY BE
OBLIGATED IN ACCORDANCE WITH SUBSECTION (A) UNTIL JUNE 30, 1976, AFTER
WHICH TIME THEY MAY BE REALLOCATED. ANY AMOUNT SO REALLOCATED SHALL BE
IN ADDITION TO THE AMOUNTS ALREADY ALLOTTED AND AVAILABLE TO THE STATE,
THE VIRGIN ISLANDS, AMERICAN SAMOA, GUAM, AND THE TRUST TERRITORY OF THE
PACIFIC ISLANDS FOR THE SAME PERIOD.
(C) IN ACCORDANCE WITH REGULATIONS PROMULGATED UNDER THIS PART, A
PORTION OF ANY ALLOTMENT TO ANY STATE UNDER THIS PART SHALL BE AVAILABLE
TO DEVELOP A STATE PLAN AND TO PAY THAT PORTION OF THE EXPENDITURES
WHICH ARE NECESSARY FOR EFFICIENT ADMINISTRATION. NOT MORE THAN 15 PER
CENTUM OF THE TOTAL ANNUAL ALLOTMENT OF SUCH STATE SHALL BE AVAILABLE
FOR SUCH PURPOSES. THE STATE SHALL MAKE AVAILABLE NEEDED FUNDS FOR
PLANNING AND ADMINISTRATION TO LOCAL GOVERNMENTS WITHIN THE STATE ON AN
EQUITABLE BASIS.
(D) FINANCIAL ASSISTANCE EXTENDED UNDER THE PROVISIONS OF THIS
SECTION SHALL NOT EXCEED 90 PER CENTUM OFTHE APPROVED COSTS OF ANY
ASSISTED PROGRAMS OR ACTIVITIES. THE NON-FEDERAL SHARE SHALL BE MADE IN
CASH OR KIND CONSISTENT WITH THE MAINTENANCE OF PROGRAMS REQUIRED BY
SECTION 261. "POST, P. 1129."
STATE PLANS "42 USC 5633."
SEC. 223. (A) IN ORDER TO RECEIVE FORMULA GRANTS UNDER THIS PART, A
STATE SHALL SUBMIT A PLAN FOR CARRYING OUT ITS PURPOSES CONSISTENT WITH
THE PROVISIONS OF SECTION 303(A), (1), (3), (5), (6), (8), (10), (11),
(12, AND (15) OF THIS TITLE 1 OF THE OMNIBUS CRIME CONTROL AND SAFE
STREETS ACT OF 1968. "42USC 3733." IN ACCORDANCE WITH REGULATIONS
ESTABLISHED UNDER THIS TITLE, SUCH PLAN MUST--,
(1) DESIGNATE THE STATE PLANNING AGENCY ESTABLISHED BY THE
STATE UNDER SECTION 203 OF SUCH TITLE I "42 USC 3723." AS THE SOLE
AGENCY FOR SUPERVISING THE PREPARATION AND ADMINISTRATION OF THE
PLAN;
(2) CONTAIN SATISFACTORY EVIDENCE THAT THE STATE AGENCY
DESIGNATED IN ACCORDANCE WITH PARAGRAPH (1) (HEREINAFTER REFERRED
TO IN THIS PART AS THE "STATE PLANNING AGENCY") HAS OR WILL HAVE
AUTHORITY, BY LEGISLATION IF NECESSARY, TO IMPLEMENT SUCH PLAN IN
CONFORMITY WITH THIS PART;
(3) PROVIDE FOR AN ADVISORY GROUP APPOINTED BY THE CHIEF
EXECUTIVE OF THE STATE TO ADVISE THE STATE PLANNING AGENCY AND ITS
SUPERVISORY BOARD (A) WHICH SHALL CONSIST OF NOT LESS THAT
TWENTY-ONE AND NOT MORE THAN THIRTY-THREE PERSONS WHO HAVE
TRAINING, EXPERIENCE, OR SPECIAL KNOWLEDGE CONCERNING THE
PREVENTION AND TREATMENT OF JUVENILE DELINQUENCY OR THE
ADMINISTRATION OF JUVENILE JUSTICE, (B) WHICH SHALL INCLUDE
REPRESENTATION OF UNITS OF LOCAL GOVERNMENT, LAW ENFORCEMENT AND
JUVENILE JUSTICE SUCH AS LAW ENFORCEMENT, CORRECTION OR PROBATION
PERSONNEL, AND JUVENILE OR FAMILY COURT JUDGES, AND PUBLIC
AGENCIES CONCERNED WITH DELINQUENCY PREVENTION OR TREATMENT SUCH
AS WELFARE, SOCIAL SERVICES, MENTAL HEALTH, EDUCATION, OR YOUTH
SERVICES DEPARTMENTS, (C) WHICH SHALL INCLUDE REPRESENTATIVES OF
PRIVATE ORGANIZATIONS CONCERNED WITH DELINQUENCY PREVENTION OR
TREATMENT; CONCERNED WITH NEGLECTED OR DEPENDENT CHILDREN;
CONCERNED WITH THE QUALITY OF JUVENILE JUSTICE, EDUCATION, OR
SOCIAL SERVICES FOR CHILDREN; WHICH UTILIZE VOLUNTEERS TO WORK
WITH DELINQUENTS OR POTENTIAL DELINQUENTS; COMMUNITY-BASED
DELINQUENCY PREVENTION OR TREATMENT PROGRAMS; AND ORGANIZATIONS
WHICH REPRESENT EMPLOYEES AFFECTED BY THIS ACT, (D) A MAJORITY OF
WHOSE MEMBERS (INCLUDING THE CHAIRMAN) SHALL NOT BE FULL-TIME
EMPLOYEES OF THE FEDERAL, STATE, OR LOCAL GOVERNMENT, AND (E) AT
LEAST ONE-THIRD OF WHOSE MEMBERS SHALL BE UNDER THE AGE OF
TWENTY-SIX AT THE TIME OF APPOINTMENT;
(4) PROVIDE FOR THE ACTIVE CONSULTATION WITH AND PARTICIPATION
OF LOCAL GOVERNMENTS IN THE DEVELOPMENT OF A STATE PLAN WHICH
ADEQUATELY TAKES INTO ACCOUNT THE NEEDS AND REQUESTS OF LOCAL
GOVERNMENTS;
(5) PROVIDE THAT AT LEAST 66 2/3 PER CENTUM OF THE FUNDS
RECEIVED BY THE STATE UNDER SECTION 222 "ANTE, P. 1118." SHALL BE
EXPENDED THROUGH PROGRAMS OF LOCAL GOVERNMENT INSOFAR AS THEY ARE
CONSISTENT WITH THE STATE PLAN, EXCEPT THAT THIS PROVISION MAY BE
WAIVED AT THE DISCRETION OF THE ADMINISTRATOR FOR ANY STATE IF THE
SERVICES FOR DELINQUENT OR POTENTIALLY DELINQUENT YOUTH ARE
ORGANIZED PRIMARILY ON A STATEWIDE BASIS;
(6) PROVIDE THAT THE CHIEF EXECUTIVE OFFICER OF THE LOCAL
GOVERNMENT SHALL ASSIGN RESPONSIBILITY FOR THE PREPARATION AND
ADMINISTRATION OF THE LOCAL GOVERNMENT'S PART OF STATE PLAN, OR
FOR THE SUPERVISION OF THE PREPARATION AND ADMINISTRATION OF THE
LOCAL GOVERNMENT'S PART OF THE STATE PLAN, TO THAT AGENCY WITHIN
THE LOCAL GOVERNMENT'S STRUCTURE (HEREINAFTER IN THIS PART
REFERRED TO AS THE "LOCAL AGENCY") WHICH CAN MOST EFFECTIVELY
CARRY OUT THE PURPOSES OF THIS PART AND SHALL PROVIDE FOR
WUPERVISION OF THE PROGRAMS FUNDED UNDER THIS PART BY THAT LOCAL
AGENCY;
(7) PROVIDE FOR AN EQUITABLE DISTRIBUTION OF THE ASSISTANCE
RECEIVED UNDER SECTION 222 WITHIN THE STATE;
(8) SET FORTH A DETAILED STUDY OF THE STATE NEEDS FOR AN
EFFECTIVE, COMPREHENSIVE, COORDINATED APPROACH TO JUVENILE
DELINQUENCY PREVENTION AND TREATMENT AND THE IMPROVEMENT OF THE
JUVENILE JUSTICE SYSTEM. THIS PLAN SHALL INCLUDE ITEMIZED
ESTIMATED COSTS FOR THE DEVELOPMENT AND IMPLEMENTATION OF SUCH
PROGRAMS;
(9) PROVIDE FOR THE ACTIVE CONSULTATION WITH AND PARTICIPATION
OF PRIVATE AGENCIES IN THE DEVELOPMENT AND EXECUTION OF THE STATE
PLAN; AND PROVIDE FOR COORDINATION AND MAXIMUM UTILIZATION OF
EXISTING JUVENILE DELINQUENCY PROGRAMS AND OTHER RELATED PROGRAMS,
SUCH AS EDUCATION, HEALTH, AND WELFARE WITHIN THE STATE;
(10) PROVIDE THAT NOT LESS THAN 75 PER CENTUM OF THE FUNDS
AVAILABLE TO SUCH STATE UNDER SECTION 222, WHETHER EXPENDED
DIRECTLY BY THE STATE OR BY LOCAL GOVERNMENT OR THROUGH CONTRACTS
WITH PUBLIC OR PRIVATE AGENCIES, SHALL BE USED FOR ADVANCED
TECHNIQUES IN DEVELOPING, MAINTAINING, AND EXPANDING PROGRAMS AND
SERVICES DESIGNED TO PREVENT JUVENILE DELINQUENCY, TO DIVERT
JUVENILES FROM THE JUVENILE JUSTICE SYSTEM, AND TO PROVIDE
COMMUNITY-BASED ALTERNATIVES TO JUVENILE DETENTION AND
CORRECTIONAL FACILITIES. THAT ADVANCED TECHNIQUES INCLUDE--,
(A) COMMUNITY-BASED PROGRAMS AND SERVICES FOR THE PREVENTION
AND TREATMENT OF JUVENILE DELINQUENCY THROUGH THE DEVELOPMENT OF
FOSTER-CARE AND SHELTER-CARE HOMES, GROUP HOMES, HALFWAY HOUSES
HOMEMAKER AND HOME HEALTH SERVICES, AND ANY OTHER DESIGNATED
COMMUNITY-BASED DIAGNOSTIC, TREATMENT, OR REHABILITATIVE SERVICE;
(B) COMMUNITY-BASED PROGRAMS AND SERVICES TO WORK WITH PARENTS
AND OTHER FAMILY MEMBERS TO MAINTAIN AND STRENGTHEN THE FAMILY
UNIT SO THAT THE JUVENILE MAY BE RETAINED IN HIS HOME;
(C) YOUTH SERVICE BUREAUS AND OTHER COMMUNITY-BASED PROGRAMS TO
DIVERT YOUTH FROM THE JUVENILE COURT OR TO SUPPORT, COUNSEL, OR
PROVIDE WORK AND RECREATIONAL OPPORTUNITIES FOR DELINQUENTS AND
YOUTH IN DANGER OF BECOMING DELINQUENTS;
(D) COMPREHENSIVE PROGRAMS OF DRUG AND ALCOHOL ABUSE EDUCATION
AND PREVENTION AND PROGRAMS FOR THE TREATMENT AND REHABILITATION
OF DRUG ADDICTED YOUTH, AND "DRUG DEPENDENT" YOUTH (AS DEFINED IN
SECTION 2 (Q) OF THE PUBLIC HEALTH SERVICE ACT (42 U.S.C. 201
(Q));
(E) EDUCATIONAL PROGRAMS OR SUPPORTIVE SERVICES DESIGNED TO
KEEP DELINQUENTS AND ENCOURAGE OTHER YOUTH TO REMAIN IN ELEMENTARY
AND SECONDARY SCHOOLS OR IN ALTERNATIVE LEARNING SITUATIONS;
(F) EXPANDED USE OF PROBATION AND RECRUITMENT AND TRAINING OF
PROBATION OFFICERS, OTHER PROFESSIONAL AND PARAPROFFESSIONAL
PERSONEL AND VOLUNTEERS TO WORK EFFECTIVELY WITH YOUTH;
(G) YOUTH INITIATED PROGRAMS AND OUTREACH PROGRAMS DESIGNED TO
ASSIST YOUTH WHO OTHERWISE WOULD NOT BE REACHED BY ASSISTANCE
PROGRAMS;
(H) PROVIDES FOR A STATEWIDE PROGRAM THROUGH THE USE OF
PROBATION SUBSIDIES, OTHER SUBSIDIES, OTHER FINANCIAL INCENTIVES
OR DISINCENTIVES TO UNITS OF LOCAL GOVERNMENT, OR OTHER EFFECTIVE
MEANS, THAT MAY INCLUDE BUT ARE NOT LIMITED TO PROGRAMS DESIGNED
TO---
(I) REDUCE THE NUMBER OF COMMITMENTS OF JUVENILES TO ANY FORM
OF JUVENILE FACILITY AS A PERCENTAGE OF THE STATE JUVENILE
POPULATION;
(II) INCREASE THE USE OF NONSECURE COMMUNITY-BASED FACILITIES
AS A PERCENTAGE OF TOTAL COMMITMENTS TO JUVENILE FACILITIES; AND
(III) DISCOURAGE THE USE OF SECURE INCARCERATION AND DETENTION;
(11) PROVIDES FOR THE DEVELOPMENT OF AN ADEQUATE RESEARCH,
TRAINING, AND EVALUATION CAPACITY WITHIN THE STATE;
(12) PROVIDE WITHIN TWO YEARS AFTER SUBMISSION OF THE PLAN THAT
JUVENILES WHO ARE CHARGED WITH OR WHO HAVE COMMITTED OFFENSES THAT
WOULD NOT BE CRIMINAL IF COMMITTED BY AN ADULT, SHALL NOT BE
PLACED IN JUVENILE DETENTION OR CORRECTIONAL FACILITIES, BUT MUS
BE PLACED IN SHELTER FACILITIES;
(13) PROVIDE THAT JUVENILES ALLEGED TO BE OR FOUND TO BE
DELINQUENT SHALL NOT BE DETAINED OR CONFINED IN ANY INSTITUTION IN
WHICH THEY HAVE REGULAR CONTACT WITH ADULT PERSONS INCARCERATED
BECAUSE THEY HAVE BEEN CONVICTED OF A CREME OR ARE AWAITING TRIAL
ON CRIMINAL CHARGES;
(14) PROVIDE FOR AN ADEQUATE SYSTEM OF MONITORING JAILS,
DETENTION FACILITIES, AND CORRECTIONAL FACILITIES TO INSURE THAT
THE REQUIREMENTS OF SECTION 223 (12) AND (13) ARE MET, AND FOR
ANNUAL REPORTING OF THE RESULTS OF SUCH MONITORING TO THE
ADMINISTRATOR;
(15) PROVIDE ASSURANCE THAT ASSISTANCE WILL BE AVAILABLE ON AN
EQUITABLE BASIS TO DEAL WITH ALL DISADVANTAGED YOUTH INCLUDING,
BUT NOT LIMITED TO, FEMALES, MINORITY YOUTH, AND MENTALLY RETARDED
AND EMOTIONALLY OR PHYSICALLY HANDICAPPED YOUTH;
(16) PROVIDE FOR PROCEDURES TO BE ESTABLISHED FOR PROTECTING
THE RIGHTS OF RECIPIENTS OF SERVICES AND FOR ASSURING APPORPRIATE
PRIVACY WITH REGARD TO RECORDS RELATING TO SUCH SERVICES PROVIDED
TO ANY INDIVIDUAL UNDER THE STATE PLAN;
(17) PROVIDE THAT FAIR AND EQUITABLE ARRANGEMENTS ARE MADE TO
PROTECT THE INTERESTS OF EMPLOYEES AFFECTED BY ASSISTANCE UNDER
THIS ACT. SUCH PROTECTIVE ARRANGEMENTS SHALL, TO THE MAXIMUM
EXTENT FEASIBLE, INCLUDE, WITHOUT BEING LIMITED TO, SUCH
PROVISIONS AS MAY BE NECESSARY FOR--,
(A) THE PRESERVATION OF RIGHTS, PRIVILEGES, AND BENEFITS
(INCLUDING CONTINUATION OF PENSION RIGHTS AND BENEFITS) UNDER
EXISTING COLLECTIVE-BARGAINING AGREEMENTS OR OTHERWISE;
(B) THE CONTINUATION OF COLLECTIVE-BARGAINING RIGHTS;
(C) THE PROTECTION OF INDIVIDUAL EMPLOYEES AGAINST A WORSENING
OF THEIR POSITIONS WITH RESPECT TO THEIR EMPLOYMENT;
(D) ASSURANCES OF EMPLOYMENT TO EMPLOYEES OF ANY STATE OR
POLITICAL SUBDIVISION THEREOF WHO WILL BE AFFECTED BY ANY PROGRAM
FUNDED IN WHOLE OR IN PART UNDER PROVISIONS OF THIS ACT;
(E) TRAINING OR RETRAINING PROGRAMS. THE STATE PLAN SHALL
PROVIDE FOR THE TERMS AND CONDITIONS OF THE PROTECTION
ARRANGEMENTS ESTABLISHED PURSUANT TO THIS SECTION;
(18) PROVIDE FOR SUCH FISCAL CONTROL AND FUND ACCOUNTING
PROCEDURES NECESSARY TO ASSURE PRUDENT USE, PROPER DISBURSEMENT,
AND ACCURATE ACCOUNTING OF FUNDS RECEIVED UNDER THIS TITLE;
(19) PROVIDE REASONABLE ASSURANCE THAT FEDERAL FUNDS MADE
AVAILABLE UNDER THIS PART FOR ANY PERIOD WILL BE SO USED AS TO
SUPPLEMENT AND INCREASE (BUT NOT SUPPLANT), TO THE EXTENT FEASIBLE
AND PRACTICAL, THE LEVEL OF THE STATE, LOCAL, AND OTHER
NON-FEDERAL FUNDS THAT WOULD IN THE ABSENCE OF SUCH FEDERAL FUNDS
BE MADE AVAILABLE FOR THE PROGRAMS DESCRIBED IN THIS PART, AND
WILL IN NO EVENT REPLACE SUCH STATE, LOCAL, AND OTHER NON-FEDERAL
FUNDS;
(20) PROVIDE THAT THE STATE PLANNING AGENCY WILL FROM TO TIME
TO TIME, BUT NOT LESS OFTEN THEN ANNUALLY, REVIEW ITS PLAN AND
SUBMIT TO THE ADMINISTRATOR AN ANALYSIS AND EVALUATION OF THE
EFFECTIVENESS OF THE PROGRAMS AND ACTIVITIES CARRIED OUT UNDER THE
PLAN, AND ANY MODIFICATIONS IN THE PLAN, INCLUDING THE SURVEY OF
STATE AND LOCAL NEEDS, WHICH IT CONSIDERS NECESSARY; AND
(21) CONTAIN SUCH OTHER TERMS AND CONDITIONS AS THE
ADMINISTRATOR MAY REASONABLY PRESCRIBE TO ASSURE THE EFFECTIVENESS
OF THE PROGRAMS ASSISTED UNDER THIS TITLE.
SUCH PLAN MAY AT THE DISCRETION OF THE ADMINISTRATOR BE INCORPORATED
INTO THE PLAN SPECIFIED IN 303 (A) OF THE OMNIBUS CRIME CONTROL AND SAFE
STREETS ACT. "42 USC 3733."
(B) THE STATE PLANNING AGENCY DESIGNATED PURSUANT TO SECTION 223 (A),
AFTER CONSULTATION WITH THE ADVISORY GROUP REFERRED TO IN SECTION 223
(A), "ANTE, P. 1119." SHALL APPROVE THE STATE PLAN AND ANY MODIFICATION
THEREOF PRIOR TO SUBMISSION TO THE ADMINISTRATOR.
(C) THE ADMINISTRATOR SHALL APPROVE ANY STATE PLAN AND ANY
MODIFICATION THEREOF THAT MEETS THE REQUIREMENTS OF THIS SECTION.
(D) IN THE EVENT THAT ANY STATE FAILS TO SUBMIT A PLAN, OR SUBMITS A
PLAN OR ANY MODIFICATION THEREOF, WHICH THE ADMINISTRATOR, AFTER
REASONABLE NOTICE AND OPPORTUNITY FOR HEARING, IN ACCORDANCE WITH
SECTIONS 509, 510, AND 511 OF THIS TITLE 2 OF THE OMNIBUS CRIME CONTROL
AND SAFE STREETS ACT OF 1968, "42 USC 3757 - 3759." DETERMINES DOES NOT
MEET THE REQUIREMENTS OF THIS SECTION, THE ADMINISTRATOR SHALL MAKE THAT
STATE'S ALLOTMENT UNDER THE PROVISIONS OF SECTION 222 (A) "ANTE, P.
1118." AVAILABLE TO PUBLIC AND PRIVATE AGENCIES FOR SPECIAL EMPHASIS
PREVENTION AND TREATMENT PROGRAMS AS DEFINED IN SECTION 224.
(E) IN THE EVENT THE PLAN DOES NOT MEET THE REQUIREMENTS OF THIS
SECTION DUE TO OVERSIGHT OR NEGLECT, RATHER THAN EXPLICIT AND CONCIOUS
DECISION, THE ADMINISTRATOR SHALL ENDEAVOR TO MAKE THAT STATE'S
ALLOTMENT UNDER THE PROVISIONS OF SECTION 222 (A) AVAILABLE TO PUBLIC
AND PRIVATE AGENCIES IN THAT STATE FOR SPECIAL EMPHASIS PREVENTION AND
TREATMENT PROGRAMS AS DEFINED IN SECTION 224.
SEC. 224. (A) THE ADMINISTRATOR IS AUTHORIZED TO MAKE GRANTS TO AND
ENTER INTO CONTRACTS WITH PUBLIC AND PRIVATE AGENCIES, ORGANIZATIONS,
INSTITUTIONS, OR INDIVIDUALS TO--,
(1) DEVELOP AND IMPLEMENT NEW APPROACHES, TECHNIQUES, AND
METHODS WITH RESPECT TO JUVENILE DELINQUENCY PROGRAMS;
(2) DEVELOP AND MAINTAIN COMMUNITY-BASED ALTERNATIVES TO
TRADITIONAL FORMS OF INSTITUTIONALIZATION;
(3) DEVELOP AND IMPLEMENT EFFECTIVE MEANS OF DIVERTING
JUVENILES FROM THE TRADITIONAL JUVENILE JUSTICE AND CORRECTIONAL
SYSTEM;
(4) IMPROVE THE CAPABILITY OF PUBLIC AND PRIVATE AGENCIES AND
ORGANIZATIONS TO PROVIDE SERVICES FOR DELINQUENTS AND YOUTHS IN
DANGER OF BECOMING DELINQUENT;
(5) FACILITATE THE ADOPTION OF THE RECOMMENDATIONS OF THE
ADVISORY COMMITTEE ON STANDARDS FOR JUVENILE JUSTICE AND THE
INSTITUTE AS SET FORTH PURSUANT TO SECTION 247; "POST, P. 1127."
AND
(6) DEVELOP AND IMPLEMENT MODEL PROGRAMS AND METHODS TO KEEP
STUDENTS IN ELEMENTARY AND SECONDARY SCHOOLS AND TO PREVENT
UNWARRANTED AND ARBITRARY SUSPENSIONS AND EXPULSIONS.
(B) NOT LESS THAN 25 PER CENTUM OR MORE THAN 50 PER CENTUM OF THE
FUNDS APPROPRIATED FOR EACN FISCAL YEAR PURSUANT TO THIS PART SHALL BE
AVAILABLE ONLY FOR SPECIAL EMPHASIS PREVENTION AND TREATMENT GRANTS AND
CONTRACTS MADE PURSUANT TO THIS SECTION.
(C) AT LEAST 20 PER CENTUM OF THE FUNDS AVAILABLE FOR GRANTS AND
CONTRACTS MADE PURSUANT TO THIS SECTION SHALL BE AVAILABLE FOR GRANTS
AND CONTRACTS TO PRIVATE NONPROFIT AGENCIES, ORGANIZATIONS, OR
INSTITUTIONS WHO HAVE HAD EXPERIENCE IN DEALING WITH YOUTH.
CONSIDERATIONS FOR APPROVAL OF APPLICATION "42 USC 5635."
SEC 225. (A) ANY AGENCY, INSTITUTION, OR INDIVIDUAL DESIRING TO
RECEIVE A GRANT, OR ENTER INTO ANY CONTRACT UNDER SECTION 224, SHALL
SUBMIT AN APPLICATION AT SUCH TIME, IN SUCH MANNER, AND CONTAINING OR
ACCOMPANIED BY SUCH INFORMATION AS THE ADMINISTRATIOR MAY PRESCRIBE.
(B) IN ACCORDANCE WITH GUIDELINES ESTABLISHED BY THE ADMINISTRATOR,
EACH SUCH APPLICATION SHALL--,
(1) PROVIDE THAT THE PROGRAM FOR WHICH ASSISTANCE IS SOUGHT
WILL BE ADMINISTERED BY OR UNDER THE SUPERVISION OF THE APPLICANT;
(2) SET FORTH A PROGRAM FOR CARRYING OUT ONE OR MORE OF THE
PURPOSES SET FORTH IN SECTION 224;
(3) PROVIDE FOR THE PROPER AND EFFICIENT ADMINISTRATION OF SUCH
PROGRAM;
(4) PROVIDE FOR REGULAR EVALUATION OF THE PROGRAM;
(5) INDICATE THAT THE APPLICANT HAS REQUESTED THE REVIEW OF THE
APPLICATION FROM THE STATE PLANNING AGENCY AND LOCAL AGENCY
DESIGNATED IN SECTION 223, WHEN APPROPRIATE, AND INDICATE THE
RESPONSE OF SUCH AGENCY TO THE REQUEST FOR REVIEW AND COMMENT ON
THE APPLICATION;
(6) PROVIDE THAT REGUALR REPORTS ON THE PROGRAM SHALL BE SENT
TO THE ADMINISTRATOR AND TO THE STATE PLANNING AGENCY AND LOCAL
AGENCY, WHEN APPROPRIATE;
(7) PROVIDE FOR SUCH FISCAL CONTROL AND FUND ACCOUNTING
PROCEDURES AS MAY BE NECESSARY TO ASSURE PRUDENT USE, PROPER
DISBURSEMENT, AND ACCURATE ACCOUNTING OF FUNDS RECEIVED UNDER THIS
TITLE; AND
(8) INDICATE THE RESPONSE OF THE STATE AGENCY OR THE LOCAL
AGENCY TO THE REQUEST FOR REVIEW AND COMMENT ON THE APPLICATION.
(C) IN DETERMINING WHITHER OR NOT TO APPROVE APPLICATIONS FOR GRANTS
UNDER SECTION 224, THE ADMINISTRATOR SHALL CONSIDER--,
(1) THE RELATIVE COST AND EFFECTIVENESS OF THE PROPOSED PROGRAM
IN EFFECTUATING THE PURPOSES OF THIS PART;
(2) THE EXTENT TO WHICH THE PROPOSED PROGRAM WILL INCORPORATE
NEW OR INNOVATIVE TECHNIQUES;
(3) THE EXTENT TO WHICH THE PROPOSED PROGRAM MEETS THE
OBJECTIVES AND PRIORITIES OF THE STATE PLAN, WHEN A STATE PLAN HAS
BEEN APPROVED BY THE ADMINISTRATOR UNDER SECTION 223 (C) "ANTE, P.
1119." AND WHEN THE LOCATION AND SCOPE OF THE PROGRAM MAKES SUCH
CONSIDERATION APPROPRIATE;
(4) THE INCREASE IN CAPACITY OF THE PUBLIC AND PRIVATE AGENCY,
INSTITUTION, OR INDIVIDUAL TO PROVIDE SERVICES TO DELINQUENTS OR
YOUTHS IN DANGER OF BECOMING DELINQUENTS;
(5) THE EXTENT TO WHICH THE PROPOSED PROJECT SERVES COMMUNITIES
WHICH HAVE HIGH RATES OF YOUTH UNEMPLOYMENT, SCHOOL DROPOUT, AND
DELINQUENCY; AND
(6) THE EXTENT TO WHICH THE PROPOSED PROGRAM FACILITATES THE
IMPLEMENATATION OF THE RECOMMENDATIONS OF THE ADVISORY COMMITTEE
ON STANDARDS FOR JUVENILE JUSTICE AS SET FORTH PURSUANT TO SECTION
247. "POST, P. 1127."
GENERAL PROVISIONS
WITHHOLDING "42 USC 5636."
SEC. 226. WHENEVER THE ADMINISTRATOR, AFTER GIVING REASONABLE NOTICE
AND OPPORTUNITY FOR HEARING TO A RECIPIENT OF FINANCIAL ASSISTANCE UNDER
THIS TITLE, FINDS--,
(1) THAT THE PROGRAM OR ACTIVITY FOR WHICH SUCH GRANT WAS MADE
HAS BEEN SO CHANGED THAT IT NO LONGER COMPLIES WITH THE PROVISIONS
OF THIS TITLE; OR
(2) THAT IN THE OPERATION OF THE PROGRAM OR ACTIVITY THERE IS
FAILURE TO COMPLY SUBSTANTIALLY WITH ANY SUCH PROVISION;
THE ADMINISTRATOR SHALL INITIATE SUCH PROCEEDINGS AS ARE APPROPRIATE.
USE OF FUNDS "42 USC 5637."
SEC. 227. (A) FUNDS PAID PURSUANT TO THIS TITLE TO ANY STATE, PUBLIC
OR PRIVATE AGENCY, INSTITUTION, OR INDIVIDUAL (WHETHER DIRECTLY OR
THROUGH A STATE OR LOCAL AGENCY) MAY BE FOR--,
(1) PLANNING, DEVELOPING, OR OPERATING THE PROGRAM DESIGNED TO
CARRY OUT THE PURPOSES OF THIS PART; AND
(2) NOT MORE THAN 50 PER CENTUM OF THE COST OF THE CONSTRUCTION
OF INNOVATIVE COMMUNITY-BASED FACILITIES FOR LESS THAN TWENTY
PERSONS WHICH, IN THE JUDGMENT OF THE ADMINISTRATOR, ARE NECESSARY
FOR CARRYING OUT THE PURPOSES OF THIS PART.
(B) EXCEPT AS PROVIDED BY SUBSECTION (A), NO FUNDS PAID TO ANY PUBLIC
OR PRIVATE AGENCY, INSTITUTION, OR INDIVIDUAL UNDER THIS PART (WHETHER
DIRECTLY OR THROUGH A STATE AGENCY OR LOCAL AGENCY) MAY BE USED FOR
CONSTRUCTION.
PAYMENTS "42 USC 5638."
SEC. 228. (A) IN ACCORDANCE WITH CRITERIA ESTABLISHED BY THE
ADMINISTRATOR, IT IS THE POLICY OF CONGRESS THAT PROGRAMS FUNDED UNDER
THIS TITLE SHALL CONTINUE TO RECEIVE FINANCIAL ASSISTANCE PROVIDING THAT
THE YEARLY EVALUATION OF SUCH PROGRAMS IS SATISFACTORY.
(B) AT THE DISCRETION OF THE ADMINISTRATOR, WHEN THERE IS NO OTHER
WAY TO FUND AN ESSENTIAL JUVENILE DELINQUENCY PROGRAM NO FUNDED UNDER
THIS PART, THE STATE MAY UTILIZE 25 PER CENTUM OF THE FORMULA GRANT
FUNDS AVAILABLE TO IT UNDER THIS PART TO MEET THE NON-FEDERAL MATCHING
SHARE REQUIREMENTS FOR ANY OTHER FEDERAL JUVENILE DELINQUENCY PROGRAM
GRANT.
(C) WHENEVER THE ADMINISTRATOR DETERMINES THAT IT WILL CONTRIBUTE TO
THE PURPOSES OF THIS PART, HE MAY REQQUIRE THE RECIPIENT OF ANY GRANT OR
CONTRACT TO CONTRIBUTE MONEY, FACILITIES, OR SERVICES.
(D) PAYMENTS UNDER THIS PART, PURSUANT TO A GRANT OR CONTRACT, MAY BE
MADE (AFTER NECESSARY ADJUSTMENT, IN THE CASE OF GRANTS, ON ACCOUNT OF
PREVIOUSLY MADE OVERPAYMENTS OR UNDERPAYMENTS) IN ADVANCE OR BY WAY OF
REIMBURSEMENTS, IN SUCH INSTALLMENTS AND ON SUCH CONDITIONS AS THE
ADMINISTRATOR MAY DETERMINE.
SEC. 241. (A) THERE IS HEREBY ESTABLISHED WITHIN THE JUVENILE
JUSTICE AND DELINQUENCY PREVENTION OFFICE A NATIONAL INSTITUTE FOR
JUVENILE JUSTICE AND DELINQUENCY PREVENTION.
(B) THE NATIONAL INSTITUTE FOR JUVENILE JUSTICE AND DELINQUENCY
PREVENTION SHALL BE UNDER THE SUPERVISION AND DIRECTION OF THE ASSISTANT
ADMINISTRATOR, AND SHALL BE HEADED BY A DEPUTY ASSISTANT ADMINISTRATOR
OF THE OFFICE APPOINTED UNDER SECTION 201 (F) "ANTE, P. 1112."
(C) THE ACTIVITIES OF THE NATIONAL INSTITUTE FOR JUVENILE JUSTICE AND
DELINQUENCY PREVENTION SHALL BE COORDINATED WITH THE ACTIVITIES OF THE
NATIONAL INSTITUTE OF LAW ENFORCEMENT AND CRIMINAL JUSTICE IN ACCORDANCE
WITH THE REQUIREMENTS OF SECTION 201 (B).
(D) THE ADMINISTRATOR SHALL HAVE RESPONSIBILITY FOR THE
ADMINISTRATION OF THE ORGANIZATION, EMPLOYEES, ENROLLEES, FINANCIAL
AFFAIRS, AND OTHER OPERATIONS OF THE INSTITUTE.
(E) THE ADMINISTRATOR MAY DELEGATE HIS POWER UNDER THE ACT TO SUCH
EMPLOYEES OF THE INSTITUTE AS HE DEEMS APPROPRIATE.
(F) IT SHALL BE THE PURPOSE OF THE INSTITUTE TO PROVIDE A
COORDINATING CENTER FOR THE COLLECTION, PREPARATION, AND DISSEMINATION
OF USEFUL DATA REGARDING THE TREATMENT AND CONTROL OF JUVENILE
OFFENDERS, AND IT SHALL ALSO BE THE PURPOSE OF THE INSTITUTE TO PROVIDE
TRAINING FOR REPRESENTATIVES OF FEDERAL, STATE, AND LOCAL LAW
ENFORCEMENT OFFICERS, TEACHERS, AND OTHER EDUCATIONAL PERSONNEL,
JUVENILE WELFARE WORKERS, JUVENILE JUDGES AND JUDICIAL PERSONNEL,
PROBATION PERSONNEL, CORRECTIONAL PERSONNEL AND OTHER PERSONS, INCLUDING
LAY PERSONNEL, CONNECTED WITH THE TREATMENT AND CONTROL OF JUVENILE
OFFENDERS.
(G) IN ADDITION TO THE OTHER POWERS, EXPRESS AND IMPLIED, THE
INSTITUTE MAY--,
(1) REQUEST ANY FEDERAL AGENCY TO SUPPLY SUCH STATISTICS, DATA,
PROGRAM REPORTS, AND OTHER MATERIAL AS THE INSTITUTE DEEMS
NECESSARY TO CARRY OUT ITS FUNCTIONS;
(2) ARRANGE WITH AND REIMBURSE THE HEADS OF FEDERAL AGENCIES
FOR THE USE OF PERSONNEL OR FACILITIES OR EQUIPMENT OF SUCH
AGENCIES;
(3) CONFER WITH AND AVAIL ITSELF OF THE COOPERATION, SERVICES,
RECORDS, AND FACILITIES OF STATE, MUNICIPAL, OR OTHER PUBLIC OR
PRIVATE LOCAL AGENCIES;
(4) ENTER INTO CONTRACTS WITH PUBLIC OR PRIVATE AGENCIES,
ORGANIZATIONS, OR INDIVIDUALS, FOR THE PARTIAL PERFORMANCE OF ANY
FUNCTIONS OF THE INSTITUTE; AND
(5) COMPENSATE CONSULTANTS AND MEMBERS OF TECHNICAL ADVISORY
COUNCILS WHO ARE NOT IN THE REGULAR FULL-TIME EMPLOY OF THE UNITED
STATES, AT A RATE NOW OR HEREAFTER PRESCRIBED FOR GS-18 OF THE
GENERAL SCHEDULE BY SECTION 5332 OF TITLE 5 OF THE UNITED STATES
CODE "5 USC 5332 NOTE." AND WHILE AWAY FROM HOME, OR REGULAR PLACE
OF BUSINESS, THEY MAY BE ALLOWED TRAVEL EXPENSES, INCLUDING PER
DIEM IN LIEU OF SUBSISTENCE, AS AUTHORIZED BY SECTION 5703 OF
TITLE 5, UNITED STATES CODE FOR PERSONS IN THE GOVERNMENT SERVICE
EMPLOYED INTERMITTENTLY.
(B) ANY FEDERAL AGENCY WHICH RECEIVES A REQUEST FROM THE INSTITUTE
UNDER SUBSECTION (G) (1) MAY COOPERATE WITH THE INSTITUTE AND SHALL, TO
THE MAXIMUM EXTENT PRACTICABLE, CONSULT WITH AND FURNISH INFORMATION AND
ADVICE TO THE INSTITUTE.
INFORMATION FUNCTION "42 USC 5652."
SEC. 242. THE NATIONAL INSTITUTE FOR JUVENILE JUSTICE AND
DELINQUENCY PREVENTION IS AUTHORIZED TO--,
(1) SERVE AS AN INFORMATION BANK BY COLLECTING SYSTEMATICALLY
AND SYNTHESIZING THE DATA AND KNOWLEDGE OBTAINED FROM STUDIES AND
RESEARCH BY PUBLIC AND PRIVATE AGENCIES, INSTITUTIONS, OR
INDIVIDUALS CONCERNING ALL ASPECTS OF JUVENILE DELINQUENCY,
INCLUDING THE PREVENTION AND TREATMENT OF JUVENILE DELINQUENCY;
(2) SERVE AS A CLEARINGHOUSE AND INFORMATION CENTER FOR THE
PREPARATION, PUBLICATION, AND DISSEMINATION OF ALL INFORMATION
REGARDING JUVENILE DELINQUENCY, INCLUDING STATE AND LOCAL JUVENILE
DELINQUENCY PREVENTION AND TREATMENT PROGRAMS AND PLANS,
AVAILABILITY OF RESOURCES, TRAINING AND EDUCATIONAL PROGRAMS,
STATISTICS, AND OTHER PERTINENT DATA AND INFORMATION.
RESEARCH, DEMONSTRATION, AND EVALUATION FUNCTIONS "42 USC
5653."
SEC. 243. THE NATIONAL INSTITUTE FOR JUVENILE JUSTICE AND
DELINQUENCY PREVENTION IS AUTHORIZED TO --,
(1) CONDUCT, ENCOURAGE, AND COORDINATE RESEARCH AND EVALUATION
INTO ANY ASPECT OF JUVENILE DELINQUENCY, PARTICULARLY WITH REGARD
TO NEW PROGRAMS AND METHODS WHICH SHOW PROMISE OF MAKING A
CONTRIBUTION TOWARD THE PREVENTION AND TREATMENT OF JUVENILE
DELINQUENCY;
(2) ENCOURAGE THE DEVELOPMENT OF DEMONSTRATION PROJECTS IN NEW,
INNOVATIVE TECHNIQUES AND METHODS TO PREVENT AND TREAT JUVENILE
DELINQUENCY;
(3) PROVIDE FOR THE EVALUATION OF ALL JUVENILE DELINQUENCY
PROGRAMS ASSISTED UNDER THIS TITLE IN ORDER TO DETERMINE THE
RESULTS AND THE EFFECTIVENESS OF SUCH PROGRAMS;
(4) PROVIDE FOR THE EVALUATION OF ANY OTHER FEDERAL, STATE, OR
LOCAL JUVENILE DELINQUENCY PROGRAM, UPON THE REQUEST OF THE
ADMINISTRATOR;
(5) PREPARE, IN COOPERATION WITH EDUCATIONAL INSTITUTIONS,
FEDERAL, STATE, AND LOCAL AGENCIES, AND APPROPRIATE INDIVIDUALS
AND PRIVATE AGENCIES, SUCH STUDIES AS IT CONSIDERS TO BE NECESSARY
WITH RESPECT TO THE PREVENTION AND TREATMENT OF JUVENILE
DELINQUENCY AND RELATED MATTERS, INCLUDING RECOMMENDATIONS
DESIGNED TO PROMOTE EFFECTIVE PREVENTION AND TREATMENT;
(6) DISSEMINATE THE RESULTS OF SUCH EVALUATIONS AND RESEARCH
AND DEMONSTRATION ACTIVITIES PARTICULARLY TO PERSONS ACTIVELY
WORKING IN THE FIELD OF JUVENILE DELINQUENCY; AND
(7) DISSEMINATE PERTINENT DATA AND STUDIES (INCLUDING A
PERIODIC JOURNAL) TO INDIVIDUALS, AGENCIES, AND ORGANIZATIONS
CONCERNED WITH THE PREVENTION AND TREATMENT OF JUVENILE
DELINQUENCY.
SEC. 244. THE NATIONAL INSTITUTE FOR JUVENILE JUSTICE AND
DELINQUENCY PREVENTION IS AUTHORIZED TO--,
(1) DEVELOP, CONDUCT, AND PROVIDE FOR TRAINING PROGRAMS FOR THE
TRAINING OF PROFESSIONAL, PARAPROFESSIONAL, AND VOLUNTEER
PERSONNEL, AND OTHER PERSONS WHO ARE OR WHO ARE PREPARING TO WORK
WITH JUVENILES AND JUVENILE OFFENDERS;
(2) DEVELOP, CONDUCT, AND PROVIDE FOR SEMINARS, WORKSHOP, AND
TRAINING PROGRAMS IN THE LATEST PROVEN EFFECTIVE TECHNIQUES AND
METHODS OF PREVENTING AND TREATING JUVENILE DELINQUENCY FOR LAW
ENFORCEMENT OFFICERS, JUVENILE JUDGES, AND OTHER COURT PERSONNEL,
PROBATION OFFICERS, CORRECTIONAL PERSONNEL, AND OTHER FEDERAL,
STATE, AND LOCAL GOVERNMENT PERSONNEL WHO ARE ENGAGED IN WORK
RELATING TO JUVENILE DELINQUENCY;
(3) DEVISE AND CONDUCT A TRAINING PROGRAM, IN ACCORDANCE WITH
THE PROVISIONS OF SECTIONS 249, 250, AND 251, OF SHORT-TERM
INSTRUCTION IN THE LATEST PROVEN-EFFECTIVE METHODS OF PREVENTION,
CONTROL, AND TREATMENT OF JUVENILE DELINQUENCY FOR CORRECTIONAL
AND LAW ENFORCEMENT PERSONNEL, TEACHERS AND OTHER EDUCATIONAL
PERSONNEL, JUVENILE WELFARE WORKERS, JUVENILE JUDGES AND JUDICIAL
PERSONNEL, PROBATION OFFICERS, AND OTHER PERSONS (INCLUDING LAY
PERSONNEL) CONNECTED WITH THE PREVENTION AND TREATMENT OF JUVENILE
DELINQUENCY; AND
(4) DEVELOP TECHNICAL TRAINING TEAMS TO AID IN THE DEVELOPMENT
OF TRAINING PROGRAMS IN THE STATES AND TO ASSIST STATE AND LOCAL
AGENCIES WHICH WORK DIRECTLY WITH JUVENILES AND JUVENILE
OFFENDERS.
INSTITUTE ADVISORY COMMITTEE "42 USC 5655."
SEC. 245. THE ADVISORY COMMITTEE FOR THE NATIONAL INSTITUTE FOR
JUVENILE JUSTICE AND DELINQUENCY PREVENTION ESTABLISHED IN SECTION 208
(D) "ANTE, P. 1117." SHALL ADVISE, CONSULT WITH, AND MAKE
RECOMMENDATIONS TO THE DEPUTY ASSISTANT ADMINISTRATOR FOR THE NATIONAL
INSTITUTE FOR JUVENILE JUSTICE AND DELINQUENCY PREVENTION CONCERNING THE
OVERALL POLICY AND OPERATIONS OF THE INSTITUTE.
ANNUAL REPORT "42 USC 5656."
SEC. 246. THE DEPUTY ASSISTANT ADMINISTRATOR FOR THE NATIONAL
INSTITUTE FOR JUVENILE JUSTICE AND DELINQUINCY PREVENTION SHALL DEVELOP
ANNUALLY AND SUBMIT TO THE ADMINISTRATOR AFTER THE FIRST YEAR THE
LEGISLATION IS ENACTED, PRIOR TO JUNE 30, A REPORT ON RESEARCH,
DEMONSTRATION, TRAINING, AND EVALUATION PROGRAMS FUNDED UNDER THIS
TITLE, INCLUDING A REVIEW OF THE RESULTS OF SUCH PROGRAMS, AN ASSESSMENT
OF THE APPLICATION OF SUCH RESULTS TO EXISTION AND TO NEW JUVENILE
DELINQUENCY PROGRAMS, AND DETAILED RECOMMENDATIONS FOR FUTURE RESEARCH,
DEMONSTRATION, TRAINING, AND EVALUATION PROGRAMS. THE ADMINISTRATOR
SHALL INCLUDE A SUMMARY OF THESE RESULTS AND RECOMMENSATIONS IN HIS
REPORT TO THE PRESIDENT AND CONGRESS REQUIRED BY SECTION 204 (B) (5).
"ANTE, P. 1113."
DEVELOPMENT OF STANDARDS FOR JUVENILE JUSTICE "42 USC 5657."
SEC. 247. (A) THE NATIONAL INSTITUTE FOR JUVENILE JUSTICE AND
DELINQUENCY PREVENTION, UNDER THE SUPERVISION OF THE ADVISORY COMMITTEE
ON STANDARDS FOR JUVENILE JUSTICE ESTABLISHED IN SECTION 208(E), SHALL
REVIEW EXISTING REPORTS, DATA, AND STANDARDS, RELATING TO THE JUVENILE
JUSTICE SYSTEM IN THE UNITED STATES.
(B) NOT LATER THAN ONE YEAR AFTER THE PASSAGE OF THIS SECTION, THE
ADVISORY COMMITTEE SHALL SUBMIT TO THE PRESIDENT AND THE CONGRESS A
REPORT WHICH, BASED ON RECOMMENDATION STANDARDS FOR THE ADMINISTRATION
OF JUVENILE JUSTICE AT THE FEDERAL, STATE, AND LOCAL LEVEL--,
(1) RECOMMENDS FEDERAL ACTION, INCLUDING BUT NOT LIMITED TO
ADMINISTRATIVE AND LEGISLATIVE ACTION, REQUIRED TO FACILITATE THE
ADOPTION OF THESE STANDARDS THROUGHOUT THE UNITED STATES; AND
(2) RECOMMENDS STATE AND LOCAL LACTION TO FACILITATE THE
ADOPTION OF THESE STANDARDS FOR JUVENILE JUSTICE AT THE STATE AND
LOCAL LEVEL.
(C) EACH DEPARTMENT, AGENCY, AND INSTRUMENTALITY OF THE EXECUTIVE
BRANCH OF THE GOVERNMENT, INCLUDING INDEPENDENT AGENCIES, IS AUTHORIZED
AND DIRECTED TO FURNISH TO THE ADVISORY COMMITTEE SUCH INFORMATION AS
THE COMMITTEE DEEMS NECESSARY TO CARRY OUT ITS FUNCTION UNDER THIS
SECTION.
SEC. 248. "42 USC 5658." RECORDS CONTAINING THE IDENTITY OF
INDIVIDUAL JUVENILES GATHERED FOR PURPOSES PURSUANT TO THIS TITLE MAY
UNDER NO CIRCUMSTANCES BE DISCLOSED OR TRANSFERRED TO ANY INDIVIDUAL OR
OTHER AGENCY, PUBLIC, OR PRIVATE.
ESTABLISHMENT OF TRAINING PROGRAM "42 USC 5659."
SEC. 249. (A) THE ADMINISTRATOR SHALL ESTABLISH WITHIN THE INSTITUTE
A TRAINING PROGRAM DESIGNED TO TRAIN ENROLLEES WITH RESPECT TO METHODS
AND TECHNIQUES FOR THE PREVENTION AND TREATMENT OF JUVENILE DELINQUENCY.
IN CARRYING OUT THIS PROGRAM THE ADMINISTRATOR IS AUTHORIZED TO MAKE
USE OF AVAILABLE STATE AND LOCAL SERVICES, EQUIPMENT, PERSONNEL,
FACILITIES, AND THE LIKE.
(B) ENROLLEES IN THE TRAINING PROGRAM ESTABLISHED UNDER THIS SECTION
SHALL BE DRAWN FROM CORRECTIONAL AND LAW ENFORCEMENT PERSONNEL, TEACHERS
AND OTHER EDUCATIONAL PERSONNEL, JUVENILE WELFARE WORKERS, JUVENILE
JUDGES AND JUDICIAL PERSONNEL, PROBATION OFFICERS, AND OTHER PERSONS
(INCLUDING LAY PERSONNEL) CONNECTED WITH THE PREVENTION AND TREATMENT OF
JUVENILE DELINQUENCY.
CURRICULUM FOR TRAINING PROGRAM "42 USC 5663."
SEC. 250. THE ADMINISTRATOR SHALL DESIGN AND SUPERVISE A CURRICULUM
FOR THE TRAINING PROGRAM ESTABLISHED BY SECTION 249 WHICH SHALL UTILIZE
AND INTERDISCIPLINARY APPROACH WITH RESPECT TO THE PREVENTION OF
JUVENILE DELINQUENCY, THE TREATMENT OF JUVENILE DELINQUENTS, AND THE
DIVERSION OF YOUTHS FROM THE JUVENILE JUSTICE SYSTEM. SUCH CURRICULUM
SHALL BE APPROPRIATE TO THE NEEDS OF THE ENROLLEES OF THE TRAINING
PROGRAM.
ENROLLMENT FOR TRAINING PROGRAM "42 USC 5661."
SEC. 251. (A) ANY PERSON SEEKING TO ENROLL IN THE TRAINING PROGRAM
ESTABLISHED UNDER SECTION 249 SHALL TRANSMIT AN APPLICATION TO THE
ADMINISTRATOR, IN SUCH FORM AND ACCORDING TO SUCH PROCEDURES AS THE
ADMINISTRATOR MAY PRESCRIBE.
(B) THE ADMINISTRATOR SHALL MAKE THE FINAL DETERMINATION WITH RESPECT
TO THE ADMITTANCE OF ANY PERSON TO THE TRAINING PROGRAM. THE
ADMINISTRATOR, IN MAKING SUCH DETERMINATION, SHALL SEEK TO ASSURE THAT
PERSONS ADMITTED TO THE TRAINING PROGRAM ARE BROADLY REPRESENTATIVE OF
THE CATEGORIES DESCRIBED IN SECTION 249 (B).
(C) WHILE STUDYING AT THE INSTITUTE AND WHILE TRAVELING IN CONNECTION
WITH HIS STUDY (INCLUDING AUTHORIZED FIELD TRIPS), EACH PERSON ENROLLED
IN THE INSTITUTE SHALL BE ALLOWED TRAVEL EXPENSES AND A PER DIEM
ALLOWANCE IN THE SAME MANNER AS PRESCRIBED FOR PERSONS EMPLOYED
INTERMITTENTLY IN THE GOVERNMENT SERVICE UNDER SECTION 5703 (B) OF TITLE
5, UNITED STATES CODE.
SEC. 261. (A) TO CARRY OUT THE PURPOSES OF THIS TITLE THERE IS
AUTHORIZED TO BE APPROPRIATED $75,000,000 FOR THE FISCAL YEAR ENDING
JUNE 30, 1975, $125,000,000 FOR THE FISCAL YEAR ENDING JUNE 30, 1976,
AND $150,000,000 FOR THE FISCAL YEAR ENDING JUNE 30, 1977.
(B) IN ADDITION TO THE FUNDS APPROPRIATED UNDER THIS SECTION, THE
ADMINISTRATION SHALL MAINTAIN FROM OTHER LAW ENFORCEMENT ASSISTANCE
ADMINISTRATION APPROPRIATIONS OTHER THAN THE APPROPRIATIONS FOR
ADMINISTRATION, AT LEAST THE SAME LEVEL OF FINANCIAL ASSISTANCE FOR
JUVENILE DELINQUENCY PROGRAMS ASSISTED BY THE LAW ENFORCEMENT ASSISTANCE
ADMINISTRATION DURING FISCAL YEAR 1972.
NONDISCRIMINATION PROVISIONS "42 USC 5672."
SEC. 262. (A) NO FINANCIAL ASSISTANCE FOR ANY PROGRAM UNDER THIS ACT
SHALL BE PROVIDED UNLESS THE GRANT, CONTRACT, OR AGREEMENT WITH RESPECT
TO SUCH PROGRAM SPECIFICALLY PROVIDES THAT NO RECIPIENT OF FUNDS WILL
DISCRIMINATE AS PROVIDED IN SUBSECTION (B) WITH RESPECT TO ANY SUCH
PROGRAM.
(B) NO PERSON IN THE UNITED STATES SHALL ON THE GROUND OF RACE,
CREED, COLOR, SEX, OR NATIONAL ORIGIN BEEXCLUDED FROM PARTICIPATION IN,
BE DENIED THE BENEFITS OF, BE SUBJECTED TO DISCRIMINATION UNDER, OR BE
DENIED EMPLOYMENT IN CONNECTION WITH ANY PROGRAM OR ACTIVITY RECEIVING
ASSISTANCE UNDER THIS ACT. THE PROVISIONS OF THE PRECEDING SENTENCE
SHALL BE ENFORCED IN ACCORDANCE WITH SECTION 603 OF THE CIVIL RIGHTS ACT
OF 1964. "42 USC 2000D-2." SECTION 603 OF SUCH ACT SHALL APPLY WITH
RESPECT TO ANY ACTION TAKEN TO ENFORCE SUCH SENTENCE. THIS SECTION
SHALL NOT BE CONSTRUED AS AFFECTING ANY OTHER LEGAL REMEDY THAT A PERSON
MAY HAVE IF SUCH PERSON IS EXCLUDED FROM PARTICIPATION IN, DENIED THE
BENEFITS OF, SUBJECTED TO DISCRIMNATION UNDER, OR DENIED EMPLOYMENT IN
CONNECTION WITH ANY PROGRAM OR ACTIVITY RECEIVING ASSISTANCE UNDER THIS
ACT.
EFFECTIVE CLAUSE "42 USC 5601 NOTE."
SEC. 263. (A) EXCEPT AS PROVIDED BY SUBSECTION (B), THE FOREGOING
PROVISIONS OF THIS ACT SHALL TAKE EFFECT ON THE DATE OF ENACTMENT OF
THIS ACT.
(B) SECTION 204 (B) (5) AND 204 (B) (6) "ANTE, P. 1113." SHALL BECOME
EFFECTIVE AT THE CLOSE OF THE THIRTY-FIRST DAY OF THE TWELFTH CALENDAR
MONTH OF 1974. SECTION 204 (1) SHALL BECOME EFFECTIVE AT THE CLOSE OF
THE THIRTY-FIRST DAY OF THE EIGHTH CALENDAR MONTH OF 1976.
SHORT TITLE "42 USC 5701 NOTE."
SEC. 301. THIS TITLE MAY BE CITED AS THE "RUNAWAY YOUTH ACT".
FINDINGS "42 USC 5701."
SEC. 302. THE CONGRESS HEREBY FINDS THAT--,
(1) THE NUMBER OF JUVENILES WHO LEAVE AND REMAIN AWAY FROM HOME
WITHOUT PARENTAL PERMISSION HAS INCREASED TO ALARMING PROPORTIONS,
CREATING A SUBSTANTIAL LAW ENFORCEMENT PROBLEM FOR THE COMMUNITIES
INUNDATED, AND SIGNIFICANTLY ENDANGERING THE YOUNG
(2) THE EXACT NATURE OF THE PROBLEM IS NOT WELL DEFINED BECAUSE
NATIONAL STATISTICS ON THE SIZE AND PROFILE OF THE RUNAWAY YOUTH
POPULATION ARE NOT TABULATED;
(3) MANY SUCH YOUNG PROPLE, BECAUSE OF THEIR AGE AND SITUATION,
ARE URGENTLY IN NEED OF TEMPORARY SHELTER AND COUNSELING SERVICES;
(4) THE PROBLEM OF LOCATING, DETAINING, AND RETURNING RUNAWAY
CHILDREN SHOULD NOT BE THE RESPONSIBILITY OF ALREADY OVERBURDENED
POLICH DEPARTMENTS AND JUVENILE JUSTICE AUTHORITIES; AND
(5) IN VIEW OF THE INTERSTATE NATURE OF THE PROBLEM, IT IS THE
RESPONSIBILITY OF THE FEDERAL GOVERNMENT TO DEVELOP ACCURATE
REPORTING OF THE PROBLEM NATIONALLY AND TO DEVELOP AN EFFECTIVE
SYSTEM OF TEMPORARY CARE OUTSIDE THE LAW ENFORCEMENT STRUCTURE.
RULES "42 USC 5702."
SEC. 303. THE SECRETARY OF HEALTH, EDUCATION, AND WELFARE
(HERE-IN-AFTER REFERRED TO AS THE "SECRETARY") MAY PRESCRIBE SUCH RULES
AS HE CONSIDERS NECESSARY OR APPROPRIATE TO CARRY OUT THE PURPOSES OF
THIS TITLE.
PURPOSES OF GRANT PROGRAM "42 USC 5711."
SEC. 311. THE SECRETARY IS AUTHORIZED TO MAKE GRANTS AND TO PROVIDE
TECHNICAL ASSISTANCE TO LOCALITIES AND NONPROFIT PRIVATE AGENCIES IN
ACCORDANCE WITH THE PROVISIONS OF THIS PART. GRANTS UNDER THIS PART
SHALL BE MADE FOR THE PURPOSE OF DEVELOPING LOCAL FACILITIES TO DEAL
PRIMARILY WITH THE IMMEDIATE NEEDS OF RUNAWAY YOUTH IN A MANNER WHICH IS
OUTSIDE THE LAW ENFORCEMENT STRUCTURE AND JUVENILE JUSTICE SYSTEM. THE
SIZE OF SUCH GRANT SHALL BE DETERMINED BY THE NUMBER OF RENAWAY YOUTH IN
THE COMMUNITY AND THE EXISTING AVAILABILITY OF SERVICES. AMONG
APPLICANTS PRIORITY SHALL BE GIVEN TO PRIVATE ORGANIZATIONS OR
INSTITUTIONS WHICH HAVE HAD PAST EXPERIENCE IN DEALING WITH RUNAWAY
YOUTH.
ELIGIBILITY "42 USC 5712."
SEC. 312. (A) TO BE ELIGIBLE FOR ASSISTANCE UNDER THIS PART, AN
APPLICANT SHALL PROPOSE TO ESTABLISH, STRENGTHEN, OR FUND AN EXISTING OR
PROPOSED RUNAWAY HOUSE, A LOCALLY CONTROLLED FACILITY PROVIDING
TEMPORARY SHELTER, AND COUNSELING SERVICES TO JUVENILES WHO HAVE LEFT
HOME WITHOUT PERMISSION OF THEIR PARENTS OR GUARDIANS.
(B) IN ORDER TO QUALIFY FOR ASSISTANCE UNDER THIS PART, AN APPLICANT
SHALL SUBMIT A PLAN TO THE SECRETARY MEETING THE FOLLOWING REQUIREMENTS
AND INCLUDING THE FOLLOWING INFORMATION. EACH HOUSE--,
(1) SHALL BE LOCATED IN AN AREA WHICH IS DEMONSTRABLY
FREQUENTED BY OR EASILY REACHABLE BY RUNAWAY YOUTH;
(2) SHALL HAVE A MAXIMUM CAPACITY OF NO MORE THAN TWENTY
CHILDREN, WITH A RETIO OF STAFF TO CHILDREN OF SUFFICIENT PORTION
TO ASSURE ADEQUATE SUPERVISION AND TREATMENT;
(3) SHALL DEVELOP ADEQUATE PLANS FOR CONTACTING THE CHILD'S
PARENTS OR RELATIVES (IF SUCH ACTION IS REQUIRED BY STATE LAW) AND
ASSURING THE SAFE RETURN OF THE CHILD ACCORDING TO THE BEST
INTERESTS OF THE CHILD, FOR CONTACTING LOCAL GOVERNMENT OFFICIALS
PURSUANT TO INFORMAL ARRANGEMENTS ESTABLISHED WITH SUCH OFFICEALS
BY THE RUNAWAY HOUSE, AND FOR PROVIDING FOR OTHER APPROPRIATE
ALTERNATIVE LIVING ARRANGEMENTS;
(4) SHALL DEVELOP AN ADEQUATE PLAN FOR ASSURING PROPER
RELATIONS WITH LAW ENFORCEMENT PERSONNEL, AND THE RETURN OF
RUNAWAY YOUTHS FROM CORRECTIONAL INSTITUTIONS;
(5) SHALL DEVELOP AN ADEQUATE PLAN FOR AFTERCARE COUNSELING
INVOLVING RUNAWAY YOUTH AND THEIR PARENTS WITHIN THE STATE IN
WHICH THE RUNAWAY HOUSE IS LOCATED AND FOR ASSURING, AS POSSIBLE,
THAT AFTERCASE SERVICES WILL BE JPROVIDED TO THOSE CHILDREN WHO
ARE RETURNED BEYOND THE STATE IN WHICH THE RUNAWAY HOUSE IS
LOCATED;
(6) SHALL KEEP ADEQUATE STATISTICAL RECORDS PROFILING THE
CHILDREN AND PARENTS WHICH IT SERVES, EXCEPT THAT RECORDS
MAINTAINED ON INDIVIDUAL RUNAWAY YOUTHS SHALL NOT BE DISCLOSED
WITHOUT PARENTAL CONSENT TO ANYONE OTHER THAN ANOTHER AGENCY
COMPILING STATISTICAL RECORDS OR A GOVERNMENT AGENCY INVOLVED IN
THE DISPOSITION OF CRIMINAL CHARGES AGAINST AN INDIVIDUAL RUNAWAY
YOUTH, AND REPORTS OR OTHER DOCUMENTS BASED ON SUCH STATISTICAL
RECORDS SHALL NOT DISCLOSE THE IDENTITY OF INDIVIDUAL RUNAWAY
YOUTHS;
(7) SHALL SUBMIT ANNUAL REPORTS TO THE SECRETARY DETAILING HOW
THE HOUSE HAS BEEN ABLE TO MEET THE GOALS OF ITS PLANS AND
REPORTING THE STATISTICAL SUMMARIES REQUIRED BY PARAGRAPH (6);
(8) SHALL DEMONSTRATE ITS ABILITY TO OPERATE UNDER ACCOUNTING
PROCEDURES AND FISCAL CONTROL DEVICES AS REQUIRED BY THE
SECRETARY;
(9) SHALL SUBMIT A BUDGET ESTIMATE WITH RESPECT TO THE PLAN
SUBMITTED BY SUCH HOUSE UNDER THIS SUBSECTION; AND
(10) SHALL SUPPLY SUCH OTHER INFORMATION AS THE SECRETARY
REASONABLY DEEMS NECESSARY.
APPROVAL BY SECRETARY "42 USC 5713."
SEC. 313. AN APPLICATION BY A STATE, LOCALITY, OR NONPROFIT PRIVATE
AGENCY FOR A FOR A GRANT UNDER THIS PART MAY BE APPROVED BY THE
SECRETARY ONLY IF IT IS CONSISTENT WITH THE APPLICABLE PROVISIONS OF
THIS PART AND MEETS THE REQUIREMENTS SET FORTH IN SECTION 312. PRIORTY
SHALL BE GIVEN TO GRANTS SMALLER THAN $75,000. IN CONSIDERING GRANT
APPLICATIONS UNDER THIS PART, PRIORITY SHALL BE GIVEN TO ANY APPLICANT
WHOSE PROGRAM BUDGET IS SMALLER THAN $100,000.
GRANTS TO PRIVATE AGENCIES STAFFING "42 USC 5713."
SEC. 314. NOTHING IN THIS PART SHALL BE CONSTRUED TO DENY GRANTS TO
NONPROFIT PRIVATE AGENCIES WHICH ARE FULLY CONTROLLED BY PRIVATE BOARDS
OR PERSONS BUT WHICH IN OTHER RESPECTS MEET THE REQUIREMENTS OF THIS
PART AND AGREE TO BE LEGALLY RESPONSIBLE FOR THE OPERATION OF THE
RUNAWAY HOUSE. NOTHING IN THIS PART SHALL GIVE THE FEDERAL GOVERNMENT
CONTROL OVER THE STAFFING AND PERSONNEL DECISIONS OF FACILITIES
RECEIVING FEDERAL FUNDS.
REPORTS "42 USC 5715."
SEC. 315. THE SECRETARY SHALL ANNUALLY REPORT TO THE CONGRESS ON THE
STATUS AND ACCOMPLISHMENTS OF THE RUNAWAY HOUSES WHICH ARE FUNDED UNDER
THIS PART, WITH PARTICULAR ATTENTION TO--,
(1) THEIR EFFECTIVENESS IN ALLEVIATING THE PROBLEMS OF RUNAWAY
YOUTH;
(2) THEIR ABILITY TO REUNITE CHILDREN WITH THEIR FAMILIES AND
TO ENCOURAGE THE RESOLUTION OF INTRAFAMILY PROBLEMS THROUGH
COUNSELING OTHER SERVICES;
(3) THEIR EFFECTIVENESS IN STRENGTHENING FAMILY RELATIONSHIPS
AND ENCOURAGING STABLE LIVING CONDITIONS FOR CHILDREN; AND
(4) THEIR EFFECTENESS IN HELPING YOUTH DECIDE UPON A FUTURE
COURSE OF ACTION.
FEDERAL SHARE "42 USC 5716."
SEC. 316. (A) THE FEDERAL SHARE FOR THE ACQUISITION AND RENOVATION
OF EXISTING STRUCTURES, THE PROVISION OF COUNSELING SERVICES, STAFF
TRAINING, AND THE GENERAL COSTS OF OPERATIONS OF SUCH FACILITY'S BUDGET
FOR ANY FISCAL YEAR SHALL BE 90 PER CENTUM. THE NON-FEDERAL SHARE MAY
BE IN CASH OR IN KIND, FAIRLY EVALUATED BY THE SECRETARY, INCLUDING
PLANT, EQUIPMENT, OR SERVICES.
(B) PAYMENTS UNDER THIS SECTION MAY BE MADE IN INSTALLMENTS, IN
ADVANCE, OR BY WAY OF REIMBURSEMENT, WITH NECESSARY ADJUSTMENTS ON
ACCOUNT OF OVERPAYMENTS OR UNDERPAYMENTS.
SURVEY; REPORT "42 USC 5731."
SEC. 321. THE SECRETARY SHALL GATHER INFORMATION AND CARRY OUT A
COMPREHENSIVE STATISTICAL SURVEY DEFINING THE MAJOR CHARACTERISTIC OF
THE RUNAWAY YOUTH POPULATION AND DETERMINING THE AREAS OF THE NATION
MOST AFFECTED. SUCH SURVEY DHALL INCLUDE THE AGE, SEX, AND
SOCIOECONOMIC BACKGROUND OF RUNAWAY YOUTH, THE PLACES FROM WHICH AND TO
WHICH CHILDREN RUN, AND THE RELATIONSHIP BETWEEN RUNNING AWAY AND OTHER
ILLEGAL BEHAVIOR. THE SECRETARY SHALL REPORT THE RESULTS OF SUCH
INFORMATION GATHERING AND SURVEY TO THE CONGRESS NOT LATER THAN JUNE 30,
1975.
RECORDS "42 USC 5732."
SEC. 322. RECORDS CONTAINING THE IDENTITY OF INDIVIDUAL RUNAWAY
YOUTHS GATHERED FOR STATISICAL PURPOSES PURSUANT TO SECTION 321 MAY
UNDER NO CIRCUMSTANCES BE DISCLOSED OR TRANSFERRED TO ANY INDIVIDUAL OR
TO ANY PUBLIC OR PRIVATE AGENCY.
SEC. 331. (A) TO CARRY OUT THE PURPOSES OF PART A OF THIS TITLE
THERE IS AUTHORIZED TO BE APPROPRIATED FOR EACH OF THE FISCAL YEARS
ENDING JUNE 30, 1975, 1976, AND 1977, THE SUM OF $10,000,000.
(B) TO CARRY OUT THE PURPOSES OF PART B OF THIS TITLE THERE IS
AUTHORIZED TO BE APPROPRIATED THE SUM OF $500,000.
YOUTH DEVELOPMENT DEMONSTRATIONS
SEC. 401. "42 USC 3811." TITLE I OF THE JUVENILE DELINQUENCY
PREVENTION ACT IS AMENDED (1) IN THE CAPTION THEREOF, BY INSERTING "AND
DEMONSTRATION PROGRAMS" AFTER "SERVICES"; (2) FOLLOWING THE CAPTION
THEREOF, BY INSERTING "PART A--COMMUNITY-BASED COORDINATED YOUTH
SERVICES"; (3) IN SECTIONS 101, 102(A), 102(B) (1), 102(B) (2), 103(A)
(INCLUDING PARAGRAPH (1) THEREOF), 104(A) (INCLUDING PARAGRAPHS (1),
(4), (5), (7), AND (10) THEREOF), AND 104(B) "42 USC 3812 - 3814." BY
STRIKING OUT "TITLE" AND INSERTING "PART" IN LIEU THEREOF; AND (4) BY
INSERTING AT THE END OF THE TITLE FOLLOWING NEW PART:
"SEC. 105. "42 USC 3821." (A) FOR THE PURPOSE OF ASSISTING THE
DEMONSTRATION OF INNOVATIVE APPROACHES TO YOUTH DEVELOPMENT AND THE
PREVENTION AND TREATMENT OF DELINQUENT BEHAVIOR (INCLUDING PAYMENT OF
ALL OR PART OF THE COSTS OF MINOR REMODELING OR ALTERATION), THE
SECRETARY MAY MAKE GRANTS TO ANY STATE (OR POLITICAL SUBDIVISION
THEREOF), ANY AGENCY THEREOF, AND ANY NONPROFIT PRIVATE AGENCY,
INSTITUTION , OR ORGANIZATION THAT SUBMITS TO THE SECRETARY, AT SUCH
TIME AND IN SUCH FORM AND MANNER AS THE SECRETARY'S REGULATIONS SHALL
PRESCRIBE, AN APPLICATION CONTAINING A DESCRIPTION OF THE PURPOSES FOR
WHICH THE GRANT IS SOUGHT, AND ASSURANCES SATISFACTORY TO THE SECRETARY
THAT THE APPLICANT WILL USE THE GRANT FOR THE PURPOSES FOR WHICH IT IS
PROVIDED, AND WILL COMPLY WITH SUCH REQUIREMENTS RELATION TO THE
SUBMISSION OR REPORTS, METHODS OF FISCAL ACCOUNTING, THE INSPECTION AND
AUDIT OF RECORDS AND OTHER MATERIALS, AND SUCH OTHER RULES, REGULATIONS,
STANDARDS, AND PROCEDURES, AS THE SECRETARY MAY IMPOSE TO ASSURE THE
FULFILLMENT OF THE PURPOSES OF THIS ACT.
"(B) NO DEMONSTRATION MAY BE ASSISTED BY GRANT UNDER THIS SECTION FOR
MORE THAN ONE YEAR."
CONSULTATION
SEC. 402. "42 USC 3888." (A) SECTION 408 OF SUCH ACT IS AMENDED BY
ADDING AT THE END OF SUBSECTION (A) THEREOF THE FOLLOWING NEW
SUBSECTION:
"(B) THE SECRETARY SHALL CONSULT WITH THE ATTORNEY GENERAL FOR THE
PURPOSE OF COORDINATING THE DEVELOPMENT AND IMPLEMENTATION OF PROGRAMS
AND ACTIVITIES FUNDED UNDER THIS ACT WITH THOSE RELATED PROGRAMS AND
ACTIVITIES FUNDED UNDER THE OMNIBUS CRIME CONTROL AND SAFE STREETS ACT
OF 1968", "42 USC 3701 NOTE." AND BY DELETING SUBSECTION (B) THEREOF.
(B) SECTION 409 IS REPEALED. "42 USC 3889."
REPEAL OF MINIMUM STATE ALLOTMENTS
SEC. 403. "42 USC 3883." SECTION 402(B) OF SUCH ACT IS REPEALED, AND
SECTION 403(A) OF SUCH ACT IS REDESIGNATED SECTION 403.
EXTENSION OF PROGRAM
SEC. 404. "42 USC 3882." SECTION 402 OF SUCH ACT, AS AMENDED BY THIS
ACT, IS FURTHER AMENDED IN THE FIRST SENTENCE BY INSERTING AFTER "FISCAL
YEAR" THE FOLLOWING: "AND SUCH SUMS AS MAY BE NECESSARY FOR FISCAL YEAR
1975".
SEC. 501. SECTION 5031 OF TITLE 18, UNITED STATES CODE, IS AMENDED
TO READ AS FOLLOWS:
"FOR THE PURPOSES OF THIS CHAPTER, A 'JUVENILE' IS A PERSON WHO HAS
NOT ATTAINED HIS EIGHTEENTH BIRTHDAY, OR FOR THE PURPOSE OF PROCEEDINGS
AND DISPOSITION UNDER THIS CHAPTER FOR AN ALLEGED ACT OF JUVENILE
DELINQUENCY, A PERSON WHO HAS NOT ATTAINED HIS TWENTY-FIRST BIRTHDAY,
AND 'JUVENILE DELINQUENCY' IS THE VIOLATION OF A LAW OF THE UNITED
STATES COMMITTED BY A PERSON PRIOR TO HIS EIGHTEENTH BIRTHDAY WHICH
WOULD HAVE BEEN A CRIME IF COMMITTED BY AN ADULT."
DELINQUENCY PROCEEDINGS IN DISTRICT COURTS
SEC. 502. SECTION 5032 OF TITLE 18, UNITED STATES CODE, IS AMENDED TO
READ AS FOLLOWS:
TRANSFER FOR CRIMINAL PROSECUTION
"A JUVENILE ALLEGED TO HAVE COMMITTED AN ACT OF JUVENILE DELINQUENCY
SHALL NOT BE PROCEEDED AGAINST IN ANY COURT OF THE UNITED STATES UNLESS
THE ATTORNEY GENERAL, AFTER INVESTIGATION, CERTIFIES TO AN APPROPRIATE
DISTRICT COURT OF THE UNITED STATES THAT THE JUVENILE COURT OR OTHER
APPROPRIATE COURT OF A STATE (1) DOES NOT HAVE JURISDICTION OR REFUSES
TO ASSUME JURISDICTION OVER SAID JUVENILE WITH RESPECT TO SUCH ALLEGED
ACT OF JUVENILE DELINQUENCY, OR (2) DOES NOT HAVE AVAILABLE PROGRAMS AND
SERVICES ADEQUATE FOR THE NEEDS OF JUVENILES.
"IF THE ATTORNEY GENERAL DOES NOT SO CERTIFY, SUCH JUVENILE SHALL BE
SURRENDERED TO THE APPROPRIATE LEGAL AUTHORITIES OF SUCH STATE.
"IF AN ALLEGED JUVENILE DELINQUENT IS NOT SURRENDERED TO THE
AUTHORITIES OF A STATE OR THE DISTRICT OF COLUMBIA PURSUANT TO THIS
SECTION, ANY PROCEEDINGS AGAINST HIM SHALL BE IN AN APPROPRIATE DISTRICT
L COURT OF THE UNITED STATES. FOR SUCH PURPOSES, THE COURT MAY BE
CONVENED AT ANY TIME AND PLACE WITHIN THE DISTRICT, IN CHAMBERS OR
OTHERWISE. THE ATTORNEY GENERAL SHALL PROCEED BY INFORMATION, AND NO
CRIMINAL PROSECUTION SHALL BE INSTITUTED FOR THE ALLEGED ACT OF JUVENILE
DELINQUENCY EXCEPT AS PROVIDED BELOW.
"A JUVENILE WHO IS ALLEGED TO HAVE COMMITTED AN ACT OF JUVENILE
DELINQUENCY AND WHO IS NOT SURRENDERED TO STATE AUTHORITIES SHALL BE
PROCEEDED AGAINST UNDER THIS CHAPTER UNLESS HE HAS REQUESTED IN WRITING
UPON ADVICE OF COUNSEL TO BE PROCEEDED AGAINST AS AN ADULT, EXCEPT THAT,
WITH RESPECT TO A JUVENILE SEXTEEN YEARS AND OLDER ALLEGED TO HAVE
COMMITTED AN ACT AFTER HIS SIXTEENTH BIRTHDAY WHICH IF COMMITTED BY AN
ADULT WOULD BE A FELONY PUNISHABLE BY A MAXIMUM PENALTY OF TEN YEARS
IMPRISONMENT OR MORE, LIFE IMPRISONMENT, OR DEATH, CRIMINAL PROSECUTION
ON THE BASIS OF THE ALLEGED ACT MAY BE BEGUN BY MOTION TO TRANSFER OF
THE ATTORNEYGENERAL IN THE APPROPRIATE DISTRICT COURT OF THE UNITED
STATES, IF SUCH COURT FINDS, AFTER HEARING, SUCH TRANSFER WOULD BE IN
THE INTEREST OF JUSTICE.
"EVIDENCE OF THE FOLLOWING FACTORS SHALL BE CONSIDERED, AND FINDINGS
WITH REGARD TO EACH FACTOR SHALL BE MADE IN THE RECORD, IN ASSESSING
WHETHER A TRANSFER WOULD BE IN THE INTEREST OF JUSTICE: THE AGE AND
SOCIAL BACKGROUND OF THE JUVENILE; THE NATURE OF THE ALLEGED OFFENSE;
THE EXTENT AND NATURE OF THE JUVENILE'S PRIOR DELINQUENCY RECORD; THE
JUVENILE'S PRESENT INTELLECTUAL DEVELOPMENT AND PSYCHOLOGICAL MATURITY;
THE NATURE OF PAST TREATMENT EFFORTS AND THE JUVENILE'S RESPONSE TO SUCH
EFFORTS; THE AVAILABILITY OF PROGRAMS DESIGNED TO TREAT THE JUVENILE'S
BEHAVIORAL PROBLEMS.
"REASONABLE NOTICE OF THE TRANSFER HEARING SHALL BE GIVEN TO THE
JUVENILE, HIS PARENTS, GUARDIAN, OR CUSTODIAN AND TO HIS COUNSEL. THE
JUVENILE SHALL BE ASSISTED BY COUNSEL DURING THE TRANSFER HEARING, AND
AT EVERY OTHER CRITICAL STAGE OF THE PROCEEDINGS.
"ONCE A JUVENILE HAS ENTERED A PLEA OF GUILTY OR THE PROCEEDING HAS
REACHED THE STAGE THAT EVIDENCE HAS BEGUN TO BE TAKEN WITH RESPECT TO A
CRIME OR AN ALLEGED ACT OF JUVENILE DELINQUENCY SUBSEQUENT CRIMINAL
PROSECUTION OR JUVENILE PROCEEDINGS BASED UPON SUCH ALLEGED ACT OF
DELINQUENCY SHALL BE BARRED.
"STATEMENTS MADE BY A JUVENILE PRIOR TO OR DURING A TRANSFER HEARING
UNDER THIS SECTION SHALL NOT BE ADMISSIBLE AT SUBSEQUENT CRIMINAL
PROSECUTIONS."
CUSTODY
SEC. 503. SECTION 5033 OF TITLE 18, UNITED STATES CODE IS AMENDED TO
READ AS FOLLOWS:
"WHENEVER A JUVENILE IS TAKEN INTO CUSTODY FOR AN ALLEGED ACT OF
JUVENILE DELINQUENCY, THE ARRESTING OFFICER SHALL IMMEDIATELY ADVISE
SUCH JUVENILE OF HIS LEGAL RIGHTS, IN LANGUAGE COMPREHENSIVE TO A
JUVENILE, AND SHALL IMMEDIATELY NOTIFY THE ATTORNEY GENERAL AND THE
JUVENILE'S PARENTS, GUARDIAN, OR CUSTODIAN OF SUCH CUSTODY. THE
ARRESTING OFFICER SHALL ALSO NOTIFY THE PARENTS, GUARDIAN, OR CUSTODIAN
OF THE RIGHTS OF THE JUVENILE AND OF THE NATURE OF THE ALLEGED OFFENSE.
"THE JUVENILE SHALL BE TAKEN BEFORE A MAGISTRATE FORTHWITH. IN NO
EVENT SHALL THE JUVENILE BE DETAINED FOR LONGER THAN A REASONABLE PERIOD
OF TIME BEFORE BEING BROUGHT BEFORE A MAGISTRATE."
DUTIES OF MAGISTRATE
SEC. 504. SECTION 5034 OF TITLE 18, UNITED STATES CODE, IS AMENDED
TO READ AS FOLLOWS:
"THE MAGISTRATE SHALL INSURE THAT THE JUVENILE IS REPRESENTED BY
COUNSEL BEFORE PROCEEDING WITH CRITICAL STAGES OF THE PROCEEDINGS.
COUNSEL SHALL BE ASSIGNED TO REPRESENT A JUVENILE WHEN THE JUVENILE AND
HIS PARENTS, GUARDIAN, OR CUSTODIAN ARE FINANCIALLY UNABLE TO OBTAIN
ADEQUATE REPRESENTATION. IN CASES WHERE THE JUVENILE AND HIS PARENTS,
GUARDIAN, OR CUSTODIAN ARE FINANCIALLY ABLE TO OBTAIN ADEQUATE
REPRESENTATION BUT HAVE NOT RETAINED COUNSEL, THE MAGISTRATE MAY ASSIGN
COUNSEL AND ORDER THE PAYMENT OF REASONABLE ATTORNEY'S FEES OR MAY
DIRECT THE JUVENILE, HIS PARENTS, GUARDIAN, OR CUSTODIAN TO RETAIN
PRIVATE COUNSEL WITHIN A SPECIFIED PERIOD OF TIME.
"THE MAGISTRATE MAY APPOINT A GUARDIAN AD LITEM IF A PARENT OR
GUARDIAN OF THE JUVENILE IS NOT PRESENT, OR IF THE MAGISTRATE HAS REASON
TO BELIEVE THAT THE PARENTS OR GUARDIAN WILL NOT COOPERATE WITH THE
JUVENILE IN PREPARING FOR TRIAL, OR THAT THE INTERESTS OF THE PARENTS OR
GUARDIAN AND THOSE OF THE JUVENILE ARE ADVERSE.
"IF THE JUVENILE HAS NOT BEEN DESCHARGED BEFORE HIS INITIAL
APPEARANCE BEFORE THE MAGISTRATE, THE MAGISTRATE SHALL RELEASE THE
JUVENILE TO HIS PARENTS, GUARDIAN, CUSTODIAN, OR OTHER RESPONSIBLE PARTY
(INCLUDING, BUT NOT LIMITED TO, THE DIRECTOR OF A SHELTER-CARE FACILITY
UPON THEIR PROMISE TO BRING SUCH JUVENILE BEFORE THE APPROPRIATE COURT
WHEN REQUESTED BY SUCH COURT UNLESS THE MAGISTRATE DETERMINES, AFTER
HEARING, AT WHICH THE JUVENILE IS REPRESENTED BY COUNSEL, THAT THE
DETENTION OF SUCH JUVENILE IS REQUIRED TO SECURE HIS TIMELY APPEARANCE
BEFORE THE APPROPRIATE COURT OR TO INSURE HIS SAFETY OR THAT OF OTHERS."
DETENTION
SEC. 505. SECTION 5035 OF THIS TITLE "18 USC 5035." IS AMENDED TO
READ AS FOLLOWS:
"A JUVENILE ALLEGED TO BE DELINQUENT MAY BE DETAINED ONLY IN A
JUVENILE FACILITY OR SUCH OTHER SUITABLE PLACE AS THE ATTORNEY GENERAL
MAY DESIGNATE. WHENEVER POSSIBLE, DETENTION SHALL BE IN A FOSTER HOME
OR COMMUNTIY BASED FACILITY LOCATED IN OR NEAR HIS HOME COMMUNITY. THE
ATTORNEY GENERAL SHALL NOT CAUSE ANY JUVENILE ALLEGED TO BE DELINQUENT
TO BE DETAINED OR CONFINED IN ANY INSTITUTION IN WHICH THE JUVENILE HAS
REGULAR CONTACT WITH ADULT PERSONS CONVICTED OF A CRIME OR AWAITHING
TRIAL ON CRIMINAL CHARGES. INSOFAR AS POSSIBLE, ALLEGED DELINQUENTS
SHALL BE KEPT SEPARATE FRIM ADJUDICATED DELINQUENTS. EVERY JUVENILE IN
CUSTODY SHALL BE PROVIDED WITH ADEQUATE FOOD, HEAT, LIGHT, SANITARY
FACILITIES, BEDDING, CLOTHING, RECREATION, EDUCATION, AND MEDICAL CARE,
INCLUDING NECESSARY PSYCHIATRIC, PSYCHOLOGICAL, OR OTHER CARE AND
TREATMENT."
SPEEDY TRIAL
SEC. 506. SECTION 5036 OF THIS TITLE IS AMENDED TO READ AS FOLLOWS:
"18 USC 5036."
"IF AN ALLEGED DELINQUENT WHO IS IN DETENTION PENDING TRIAL IS NOT
BROUGHT TO TRIAL WITHIN THIRTY DAYS FROM THE DATE UPON WHICH SUCH
DETENTION WAS BEGUN, THE INFORMATION SHALL BE DISMISSED ON MOTION OF THE
ALLEGED DELINQUENT OR AT THE DIRECTION OF THE COURT, UNLESS THE ATTORNEY
GENERAL SHOWS THAT ADDITIONAL DELAY WAS CAUSED BY THE JUVENILE OR HIS
COUNSEL, OR CONSENTED TO BY THE JUVENILE AND HIS COUNSEL, OR WOULD BE IN
THE INTEREST OF JUSTICE IN THE PARTICULAR CASE. DELAYS ATTRIBUTABLE
SOLELY TO COURT CALENDAR CONGESTION MAY NOT BE CONSIDERED IN THE
INTEREST OF JUSTICE. EXCEPT IN EXTRAORDINARY CIRCUMSTANCES, AN
INFORMATION DISMISSED UNDER THIS SECTION MAY NOT BE REINSTITUTED."
DISPOSITION
SEC. 507. SECTION 5037 "18 USC 5037." IS AMENDED TO READ AS FOLLOWS:
"(A) IF A JUVENILE IS ADJUDICATED DELINQUENT, A SEPARATE
DISPOSITIONAL HEARING SHALL BE HELD NO LATER THAN TWENTY COURT DAYS
AFTER TRIAL UNLESS THE COURT HAS ORDERED FURTHER STUDY IN ACCORDANCE
WITH SUBSECTION (C). COPIES OF THE PRESENTENCE REPORT SHALL BE PROVIDED
TO THE ATTORNEYS FOR BOTH THE JUVENILE AND THE GOVERNMENT A REASONABLE
TIME IN ADVANCE OF THE HEARING.
"(B) THE COURT MAY SUSPEND THE ADJUDICATION OF DELINQUENCY OR THE
DISPOSITION OF THE DELINQUENT ON SUCH CONDITIONS AS IT DEEMS PROPER,
PLACE HIM ON PROBATION, OR COMMIT HIM TO THE CUSTODY OF THE ATTORNEY
GENERAL. PROBATION, COMMITMENT, OR COMMITMENT IN ACCORDANCE WITH
SUBSECTION (C) SHALL NOT EXTEND BEYOND THE JUVENILE'S TWENTY-FIRST
BIRTHDAY OR THE MAXIMUM TERM WHICH COULD HAVE BEEN IMPOSED ON AN ADULT
CONVICTED OF THE SAME OFFENSE, WHICHEVER IS SOONER, UNLESS THE JUVENILE
HAS ATTAINED HIS NINETEENTH BIRTHDAY AT THE TIME OF DISPOSITION, IN
WHICH CASE PROBATION, COMMITMENT, OR COMMITMENT IN ACCORDANCE WITH
SUBSECTION (C) SHALL NOT EXCEED THE LESSER OF TWO YEARS OR THE MAXIMUM
TERM WHICH COULD HAVE BEEN IMPOSED ON AN ADULT CONVICTED OF THE SAME
OFFENSE.
"(C) IF THE COURT DESIRES MORE DETAILED INFORMATION CONCERNING AN
ALLEGED OR ADJUDICATED DELINQUENT, IT MAY COMMIT HIM, AFTER NOTICE AND
HEARING AT WHICH THE JUVENILE IS REPRESENTED BY COUNSEL, TO THE CUSTODY
OF THE ATTORNEY GENERAL FOR OBSERVATION AND STUDY BY AN APPROPRIATE
AGENCY. SUCH OBSERVATION AND STUDY SHALL BE CONDUCTED ON AN OUTPATIENT
BASIS, UNLESS THE COURT DETERMINES THAT INPATIENT OBSERVATION AND STUDY
ARE NECESSARY TO OBTAIN THE DESIRED INFORMATION. IN THE CASE OF AN
ALLEGED JUVENILE DELINQUENT, INPATIENT STUDY MAY BE ORDERED ONLY WITH
THE CONSENT OF THE JUVENILE AND HIS ATTORNEY. THE AGENCY SHALL MAKE A
COMPLETE STUDY OF THE ALLEGED OR ADJUDICATED DELINQUENT TO ASCERTAIN HIS
PERSONAL TRAITS, HIS CAPABILITIES, HIS BACKGROUND, ANY PREVIOUS
DELINQUENCY OR CRIMINAL EXPERIENCE, ANY MENTAL OR PHYSICAL DEFECT, AND
ANY OTHER RELEVANT FACTORS. THE ATTORNEY GENERAL SHALL SUBMIT TO THE
COURT AND THE ATTORNEYS FOR THE JUVENILE AND THE GOVERNMENT THE RESULTS
OF THE STUDY WITHIN THIRTY DAYS AFTER THE COMMITMENT OF THE JUVENILE,
UNLESS THE COURT GRANTS ADDITIONAL TIME."
JUVENILE RECORDS
SEC. 508. SECTION 5038 IS ADDED, TO READ AS FOLLOWS: "18 USC 5038."
"(A) THROUGHOUT THE JUVENILE DELINQUENCY PROCEEDING THE COURT SHALL
SAFEGUARD THE RECORDS FROM DISCLOSURE. UPON THE COMPLETION OF ANY
JUVENILE DELINQUENCY PROCEEDING WHETHER OR NOT THERE IS AN ADJUDICATION
THE DISTRICT COURT SHALL ORDER THE ENTIRE FILE AND RECORD OF SUCH
PROCEEDING SEALED. AFTER SUCH SEALING, THE COURT SHALL NOT RELEASE
THESE RECORDS EXCEPT TO THE EXTENT NECESSARY TO MEET THE FOLLOWING
CIRCUMSTANCES:
"(1) INQUIRIES RECEIVED FROM ANOTHER COURT OF LAW;
"(2) INQUIRIES FROM AN AGENCY PREPARING A PRESENTENCE REPORT
FOR ANOTHER COURT;
"(3) INQUIRIES FROM LAW ENFORCEMENT AGENCIES WHERE THE REQUEST
FOR INFORMATION IS RELATED TO THE INVESTIGATION OF A CRIME OR A
POSITION WITHIN THAT AGENCY;
"(4) INQUIRIES, IN WRITING, FROM THE DIRECTOR OF A TREATMENT
AGENCY OR THE DIRECTOR OF A FACILITY TO WHICH THE JUVENILE HAS
BEEN COMMITTED BY THE COURT; AND
"(5) INQUIRIES FROM AN AGENCY CONSIDERING THE PERSON FOR A
POSITION IMMEDIATELY AND DIRECTLY AFFECTING THE NATIONAL SECURITY.
UNLESS OTHERWISE AUTHORIZED BY THIS SECTION, INFORMATION ABOUT THE
SEALED RECORD MAY NOT BE RELEASED WHEN THE REQUEST FOR INFORMATION IS
RELATED TO AN APPLICATION FOR EMPLOYMENT, LICENSE, BONDING, OR ANY CIVIL
RIGHT OR PRIVILEDGE. RESPONSE TO SUCH INQUIRIES SHALL NOT BE DIFFERENT
FROM RESPONSES MADE ABOUT PERSONS WHO HAVE NEVER BEEN INVOLVED IN A
DELINQUENCY PROCEEDING.
"(B) DISTRICT COURTS EXERCISING JURISDICTION OVER ANY JUVENILE SHALL
INFORM THE JUVENILE, AND HIS PARENT OR GUARDIAN, IN WRITING IN CLEAR AND
NONTECHNICAL LANGUAGE, OF RIGHTS RELATING TO THE SEALING OF HIS JUVENILE
RECORD.
"(C) DURING THE COURSE OF ANY JUVENILE DELINQUENCY PROCEEDING, ALL
INFORMATION AND RECORDS RELATION TO THE PROCEEDING, WHICH ARE OBTAINED
OR PREPARED IN THE DISCHARGE OF AN OFFICIAL DUTY BY AN EMPLOYEE OF THE
COURT OR AN EMPLOYEE OF ANY OTHER GOVERNMENTAL AGENCY, SHALL NOT BE
DISCLOSED DIRECTLY OR INDIRECTLY TO ANYONE OTHER THAN THE JUDGE, COUNSEL
FOR THE JUVENILE AND THE GOVERNMENT, OR OTHERS ENTITLED UNDER THIS
SECTION TO RECEIVE SEALED RECORDS.
"(D) UNLESS JUVENILE WHO IS TAKEN INTO CUSTODY IS PROSECUTED AS AN
ADULT--,
"(1) NEITHER THE FINGERPRINTS NOR PHOTOGRAPH SHALL BE TAKEN
WITHOUT THE WRITTEN CONSENT OF THE JUDGE; AND
"(2) NEITHER THE NAME NOR PICTURE OF ANY JUVENILE SHALL BE MADE
PUBLIC BY ANY MEDIUM OF PUBLIC INFORMATION IN CONNECTION WITH A
JUVENILE DELINQUENCY PROCEEDING."
SEC. 509. SECTION 5039 IS ADDED, TO READ AS FOLLOWS: "18 USC 5039."
"NO JUVENILE COMMITTED TO THE CUSTODY OF THE ATTORNEY GENERAL MAY BE
PLACED OR RETAINED IN AN ADULT JAIL OR CORRECTIONAL INSTITUTION IN WHICH
HE HAS REGULAR CONTACT WITH ADULTS INCARCERATED BECAUSE THEY HAVE BEEN
CONVICTED OF A CRIME OR ARE AWAITING TRIAL ON CRIMINAL CHARGES.
"EVERY JUVENILE WHO HAS BEEN COMMITTED SHALL BE PROVIDED WITH
ADEQUATE FOOD, HEAT, LIGHT, SANITARY FACILITIES, BEDDING, CLOTHING,
RECREATION, COUNSELING, EDUCATION, TRAINING, AND MEDICAL CARE INCLUDING
NECESSARY PSYCHIATRIC, PSYCHOLOGICAL, OR OTHER CARE AND TREATMENT.
"WHENEVER POSSIBLE, THE ATTORNEY GENERAL SHALL COMMIT A JUVENILE TO A
FOSTER HOME OR COMMUNITY-BASED FACILITY LOCATED IN OR NEAR HIS HOME
COMMUNITY."
SUPPORT
SEC. 510. SECTION 5040 IS ADDED, TO READ AS FOLLOWS: "18 USC 5040."
"THE ATTORNEY GENERAL MAY CONTRACT WITH ANY PUBLIC OR PRIVATE AGENCY
OR INDIVIDUAL AND SUCH COMMUNITY-BASED FACILITIES AS HALFWAY HOUSES AND
FOSTER HOMES FOR THE OBSERVATION AND STUDY AND THE CUSTODY AND CARE OF
JUVENILES IN HIS CUSTODY. FOR THESE PURPOSES, THE ATTORNEY GENERAL MAY
PROMULGATE SUCH REGULATIONS AS ARE NECESSARY AND MAY USE THE
APPROPRIATION FOR 'SUPPORT OF UNITED STATES PRISONERS' OR SUCH OTHER
APPROPRIATIONS AS HE MAY DESIGNATE."
PAROLE
SEC. 511. SECTION 5041 IS ADDED TO READ AS FOLLOWS: "18 USC 5041."
"THE BOARD OF PAROLE SHALL RELEASE FROM CUSTODY, ON SUCH CONDITIONS
AS IT DEEMS NECESSARY, EACH JUVENILE DELINQUENT WHO HAS BEEN COMMITTED,
AS SOON AS THE BOARD IS SATISFIED THAT HE IS LIKELY TO REMAIN AT LIBERTY
WITHOUT VIOLATING THE LAW AND WHEN SUCH RELEASE WOULD BE IN THE INTEREST
OF JUSTICE."
REVOCATION
SEC. 512. SECTION 5042 IS ADDED TO READ AS FOLLOWS: "18 USC 5042."
"ANY JUVENILE PAROLEE OR PROBATIONER SHALL BE ACCORDED NOTICE AND A
HEARING WITH COUNSEL BEFORE HIS PAROLE OR PROBATION CAN BE REVOKED."
SEC. 513. THE TABLE OF SECTIONS OF CHAPTER 403 OF THIS TITLE IS
AMENDED TO READ AS FOLLOWS:
"SEC.
"5031. DEFINITIONS.
"5032. DELINQUENCY PROCEEDINGS IN DISTRICT COURTS; TRANSFER FOR
CRIMINAL PROSECUTION.
"5033. CUSTODY PRIOR TO APPEARANCE BEFORE MAGISTRATE.
"5034. DUTIES OF MAGISTRATE.
"5035. DETENTION PRIOR TO DISPOSITION.
"5036. SPEEDY TRIAL.
"5037. DISPOSITIONAL HEARING.
"5038. USE OF JUVENILE RECORDS.
"5039. COMMITMENT.
"5040. SUPPORT.
"5041. PAROLE.
"5042. REVOCATION OF PAROLE OR PROBATION.".
SEC. 521. TITLE 18, UNITED STATES CODE, IS AMENDED BY ADDING A NEW
CHAPTER 319 TO READ AS FOLLOWS:
"SEC. 4351. "18 USC 4351." (A) THERE IS HEREBY ESTABLISHED WITHIN
THE BUREAU OF PRISONS A NATIONAL INSTITUTE OF CORRECTIONS.
"(B) THE OVERALL POLICY AND OPERATIONS OF THE NATIONAL INSTITUTE OF
CORRECTIONS SHALL BE UNDER THE SUPERVISION OF AN ADVISORY BOARD. THE
BOARD SHALL CONSIST OF SIXTEEN MEMBERS. THE FOLLOWING SIX INDIVIDUALS
SHALL SERVE AS MEMBERS OF THE COMMISSIONEX OFFICIO: THE DIRECTOR OF THE
FEDERAL BUREAU OF PRISONS OR HIS DESIGNEE, THE ADMINISTRATOR OF THE LAW
ENFORCEMENT ASSISTANCE ADMINISTRATION OR HIS DESIGNEE, CHAIRMAN OF THE
UNITED STATES PAROLE BOARD OR HIS DESIGNEE, THE DIRECTOR OF THE FEDERAL
JUDICIAL CENTER OR HIS DESIGNEE, THE DEPUTY ASSISTANT ADMINISTRATOR FOR
THE NATIONAL INSTITUTE FOR JUVENILE JUSTICE AND DELINQUENCY PREVENTION
OR HIS DESIGNEE, AND THE ASSISTANT SECRETARY OF HUMAN DEVELOPMENT OF THE
DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE OR HIS DESIGNEE.
"(C) THE REMAINING TEN MEMBERS OF THE BOARD SHALL BE SELECTED AS
FOLLOWS:
"(1) FIVE SHALL BE APPOINTED INITIALLY BY THE ATTORNEY GENERAL OF THE
UNITED STATES FOR STAGGERED TERMS; ONE MEMBER SHALL SERVE FOR ONE YEAR,
ONE MEMBER FOR TWO YEARS, AND THREE MEMBERS FOR THREE YEARS. UPON THE
EXPIRATION OF EACH MEMBER'S TERM, THE ATTORNEY GENERAL SHALL APPOINT
SUCCESSORS WHO WILL EACH SERVE FOR A TERM OF THREE YEARS. EACH MEMBER
SELECTED SHALL BE QUALIFIED AS A PRACTITIONER (FEDERAL, STATE, OR LOCAL)
IN THE FIELD OF CORRECTIONS, PROBATION, OR PAROLE.
"(2) FIVE SHALL BE APPOINTED INITIALLY BY THE ATTORNEY GENERAL OF THE
UNITED STATES FOR STAGGERED TERMS, ONE MEMBER SHALL SERVE FOR ONE YEAR,
THREE MEMBERS FOR TWO YEARS, AND ONE MEMBER FOR THREE YEARS." UPON THE
EXPIRATION OF EACH MEMBER'S TERM THE ATTORNEY GENERAL SHALL APPOINT
SUCCESSORS WHO WILL EACH SERVE FOR A TERM OF THREE YEARS. EACH MEMBER
SELECTED SHALL BE FROM THE PRIVATE SECTOR, SUCH AS BUSINESS, LABOR, AND
EDUCATION, HAVING DEMONSTRATED AN ACTIVE INTEREST IN CORRECTIONS,
PROBATION, OR PAROLE.
"(D) THE MEMBERS OF THE BOARD SHALL NOT, BY REASON OF SUCH
MEMBERSHIP, BE DEEMED OFFICERS OR EMPLOYEES OF THE UNITED STATES.
MEMBERS OF THE COMMISSION WHO ARE FULL-TIME OFFICERS OR EMPLOYEES OF THE
UNITED STATES SHALL SERVE WITHOUT ADDITIONAL COMPENSATION, BUT SHALL BE
REIMBURSED FOR TRAVEL, SUBSISTENCE, AND OTHER NECESSARY EXPENSES
INCURRED IN THE PERFORMANCE OF THE DUTIES VESTED IN THE BOARD. OTHER
MEMBERS OF THE BOARD SHALL, WHILE ATTENDING MEETINGS OF THE BOARD OR
WHILE ENGAGED IN DUTIES RELATED TO SUCH MEETINGS OR IN OTHER ACTIVITIES
OF THE COMMISSION PURSUANT TO THIS TITLE, BE ENTITLED TO RECEIVE
COMPENSATION AT THE RATE NOT TO EXCEED THE DAILY EQUIVALENT OF THE RATE
AUTHORIZED FOR GS-18 BY SECTION 5332 OF TITLE 5, UNITEDSTATES CODE, 5
USC 5332 NOTE." INCLUDING TRAVEL-TIME, AND WHILE AWAY FROM THEIR HOMES
OR REGULAR PLACES OF BUSINESS MAY BE ALLOWED TRAVEL EXPENSES, INCLUDING
PER DIEM IN LIEU OF SUBSISTENCE EQUAL TO THAT AUTHORIZED BY SECTION 5703
OF TITLE 5, UNITED STATES CODE, FOR PERSONS IN THE GOVERNMENT SERVICE
EMPLOYED INTERMITTENTLY.
"(E) THE BOARD SHALL ELECT A CHAIRMAN FROM AMONG ITS MEMBERS WHO
SHALL SERVE FOR A TERM OF ONE YEAR. THE MEMBERS OF THE BOARD SHALL ALSO
ELECT ONE OR MORE MEMBERS AS A VICE- CHAIRMAN.
"(F) THE BOARD IS AUTHORIZED TO APPOINT, WITHOUT REGARD TO THE CIVIL
SERVICE LAWS, TECHNICAL, OR OTHER ADVISORY COMMITTEES TO ADVISE THE
INSTITUTE WITH RESPECT TO THE ADMINISTRATION OF THIS TITLE AS IT DEEMS
APPROPRIATE. MEMBERS OF THESE COMMITTEES NOT OTHERWISE EMPLOYED BY THE
UNITED STATES, WHILE ENGAGED IN ADVISING THE INSTITUTE OR ATTENDING
MEETINGS OF THE COMMITTEES, SHALL BE ENTITLED TO RECEIVE COMPENSATION AT
THE RATE FIXED BY THE BOARD BUT NOT TO EXCEED THE DAILY EQUIVALENT OF
THE RATE AUTHORIZED FOR GS-18 BY SECTION 5332 OF TITLE 5, UNITED STATES
CODE, "5 USC 5332 NOTE." AND WHILE AWAY FROM THEIR HOMES OR REGULAR
PLACES OF BUSINESS MAY BE ALLOWED TRAVEL EXPENSES, INCLUDING PER DIEM IN
LIEU OF SUBSISTENCE EQUAL TO THAT AUTHORIZED BY SECTION 5703 OF TITLE 5,
UNITED STATES CODE, FOR PERSONS IN THE GOVERNMENT SERVICE EMPLOYED
INTERMITTENTLY.
"(G) THE BOARD IS AUTHORIZED TO DELEGATE ITS POWERS UNDER THIS TITLE
TO SUCH PERSONS AS IT DEEMS APPROPRIATE.
"(H) THE INSTITUTE SHALL BE UNDER THE SUPERVISION OF AN OFFICER TO BE
KNOWN AS THE DIRECTOR, WHO SHALL BE APPOINTED BY THE ATTORNEY GENERAL
AFTER CONSULTATION WITH THE BOARD. THE DIRECTOR SHALL HAVE AUTHORITY TO
SUPERVISE THE ORGANIZATION, EMPLOYEES, ENROLLEES, FINANCIAL AFFAIRS, AND
ALL OTHER OPERATIONS OF THE INSTITUTE AND MAY EMPLOY SUCH STAFF,
FACULTY, AND ADMINISTRATIVE PERSONNEL, SUBJECT TO THE CIVIL SERVICE AND
CLASSIFICATION LAWS, AS ARE NECESSARY TO THE FUNCTIONING OF THE
INSTITUTE. THE DIRECTOR SHALL HAVE THE POWER TO ACQUIRE AND HOLD REAL
AND PERSONAL PROPERTY FOR THE INSTITUTE AND MAY RECEIVE GIFTS,
DONATIONS, AND TRUSTS ON BEHALF OF THE INSTITUTE. THE DIRECTOR SHALL
ALSO HAVE THE POWER TO APPOINT SUCH TECHNICAL OR OTHER ADVISORY COUNCILS
COMPRISED OF CONSULTANTS TO GUIDE AND ADVISE THE BOARD. THE DIRECTOR IS
AUTHORIZED TO DELEGATE HIS POWERS UNDER THIS TITLE TO SUCH PERSONS AS HE
DEEMS APPROPRIATE.
"SEC. 4352. (A) IN ADDITION TO THE OTHER POWERS, EXPRESS AND
IMPLIED, THE NATIONAL INSTITUTE OF CORRECTIONS SHALL HAVE AUTHORITY--,
"(1) TO RECEIVE FROM OR MAKE GRANTS TO AND ENTER INTO CONTRACTS
WITH FEDERAL, STATE, AND GENERAL UNITS OF LOCAL GOVERNMENT, PUBLIC
PRIVATE AGENCIES, EDUCATIONAL INSTITUTIONS, ORGANIZATIONS, AND
INDIVIDUALS TO CARRY OUT THE PURPOSES OF THIS CHAPTER;
"(2) TO SERVE AS A CLEARINGHOUSE AND INFORMATION CENTER FOR THE
COLLECTION, PREPARATION, AND DISSEMINATION OF INFORMATION ON
CORRECTIONS, INCLUDING, BUT NOT LIMITED TO, PROGRAMS FOR
PREVENTION OF CRIME AND RECIDIVISM, TRAINING OF CORRECTIONS
PERSONNEL, AND REHABILITATION AND TREATMENT OF CRIMINAL AND
JUVENILE OFFENDERS;
"(3) TO ASSIST AND SERVE IN A CONSULTING CAPACITY TO FEDERAL,
STATE, AND LOCAL COURTS, DEPARTMENTS, AND AGENCIES IN THE
DEVELOPMENT, MAINTENANCE, AND COORDINATION OF PROGRAMS,
FACILITIES, AND SERVICES, TRAINING, TREATMENT, AND REHABILITATION
WITH RESPECT TO CRIMINAL AND JUVENILE OFFENDERS;
"(4) TO ENCOURAGE AND ASSIST FEDERAL, STATE, AND LOCAL
GOVERNMENT PROGRAMS AND SERVICES, AND PROGRAMS AND SERVICES OF
OTHER PUBLIC AND PRIVATE AGENCIES, INSTITUTIONS, AND ORGANIZATIONS
IN THEIR EFFORTS TO DEVELOP AND IMPLIMENT IMPROVED CORRECTIONS
PROGRAMS;
"(5) TO DEVISE AND CONDUCT, IN VARIOUS GEOGRAPHICAL LOCATIONS,
SEMINARS, WORKSHOPS, AND TRAINING PROGRAMS FOR LAW ENFORCEMENT
OFFICERS, JUDGES, AND JUDICIAL PERSONNEL, PROBATION AND PAROLE
PERSONNEL, CORRECTIONAL PERSONNEL, WELFARE WORKERS, AND OTHER
PERSONS, INCLUDING LAY EX-OFFENDERS, AND PARAPROFESSIONAL
PERSONNEL, CONNECTED WITH THE TREATMENT AND REHABILITATION OF
CRIMINAL AND JUVENILE OFFENDERS;
"(6) TO DEVELOP TECHNICAL TRAINING TEAMS TO AID IN THE
DEVELOPMENT OF SEMINARS, WORKSHOPS, AND TRAINING PROGRAMS WITHIN
THE SEVERAL STATES AND WITH THE STATE AND LOCAL AGENCIES WHICH
WORK WITH PRISONERS, PAROLEES, PROBATIONERS, AND OTHER OFFENDERS;
"(7) TO CONDUCT, ENCOURAGE, AND COORDINATE RESEARCH RELATING TO
CORRECTIONS, INCLUDING THE CAUSES, PREVENTION, DIAGNOSIS, AND
TREATMENT OF CRIMINAL OFFENDERS;
"(8) TO FORMULATE AND DISSEMINATE CORRECTIONAL POLICY, GOALS,
STANDARDS, AND RECOMMENDATIONS FOR FEDERAL, STATE, AND LOCAL
CORRECTIONAL AGENCIES, ORGANIZATIONS, INSTITUTIONS, AND PERSONNEL;
"(9) TO CONDUCT EVALUATION PROGRAMS WHICH STUDY THE
EFFECTIVENESS OF NEW APPROACHES, TECHNIQUES, SYSTEMS, PROGRAMS,
AND DEVICES EMPLOYED TO IMPROVE THE CORRECTIONS SYSTEM;
"(10) TO RECEIVE FROM ANY FEDERAL DEPARTMENT OR AGENCY SUCH
STATISTICS, DATA, PROGRAM REPORTS, AND OTHER MATERIAL AS THE
INSTITUTE DEEMS NECESSARY TO CARRY OUT ITS FUNCTIONS. EACH SUCH
DEPARTMENT OR AGENCY IS AUTHORIZED TO COOPERATE WITH THE INSTITUTE
AND SHALL, TO THE MAXIMUM EXTENT PRACTICABLE, CONSULT WITH AND
FURNISH INFORMATION TO THE INSTITUTE;
"(11) TO ARRANGE WITH AND REIMBURSE THE HEADS OF FEDERAL
DEPARTMENTS AND AGENCIES FOR THE USE OF PERSONNEL, FACILITIES, OR
EQUIPMENT OF SUCH DEPARTMENTS AND AGENCIES;
"(12) TO CONFER WITH AND AVAIL ITSELF OF THE ASSISTANCE,
SERVICES, RECORDS, AND FACILITIES OF STATE AND LOCAL GOVERNMENTS
OR OTHER PUBLIC OR PRIVATE AGENCIES, ORGANIZATIONS, OR
INDIVIDUALS;
"(13) TO ENTER INTO CONTRACTS WITH PUBLIC OR PRIVATE AGENCIES,
ORGANIZATIONS, OR INDIVIDUALS, FOR THE PERFORMANCE OF ANY OF THE
FUNCTIONS OF THE INSTITUTE; AND
"(14) TO PROCURE THE SERVICES OF EXPERTS AND CONSULTANTS IN
ACCORDANCE WITH SECTION 3109 OF THE TITLE 5 OF THE UNITED STATES
CODE, AT RATES OF COMPENSATION NOT TO EXCEED THE DAILY EQUIVALENT
OF THE RATE AUTHORIZED FOR GS-18 BY SECTION 5332 OF TITLE 5 OF THE
UNITED STATES CODE, "5 USC 5332 NOTE."
"(B) THE INSTITUTE SHALL ON OR BEFORE THE 31ST DAY OF DECEMBER OF
EACH YEAR SUBMIT AN ANNUAL REPORT FOR THE PRECEDING FISCAL YEAR TO THE
PRESIDENT AND TO THE CONGRESS. THE REPORT SHALL INCLUDE A COMPREHENSIVE
AND DETAILED REPORT OF THE INSTITUTE'S OPERATIONS, ACTIVITIES, FINANCIAL
CONDITION, AND ACCOMPLISHMENTS UNDER THIS TITLE AND MAY INCLUDE SUCH
RECOMMENDATIONS RELATED TO CORRECTIONS AS THE INSTITUTE DEEMS
APPROPRIATE.
"(C) EACH RECIPIENT OF ASSISTANCE UNDER THIS SHALL KEEP SUCH RECORDS
AS THE INSTITUTE SHALL PRESCRIBE, INCLUDING RECORDS WHICH FULLY DISCLOSE
THE AMOUNT AND DISPOSITION BY SUCH RECIPIENT OF THE PROCEEDS OF SUCH
ASSISTANCE, THE TOTAL COST OF THE PROJECT OR UNDERTAKING IN CONNECTION
WITH WHICH SUCH ASSISTANCE IS GIVEN OR USED, AND THE AMOUNT OF THAT
PORTION OF THE COST OF THE PROJECT OR UNDERTAKING SUPPLIED BY OTHER
SOURCES, AND SUCH OTHER RECORDS AS WILL FACILITATE AN EFFECTIVE AUDIT.
"(D) THE INSTITUTE, AND THE COMPTROLLER GENERAL OF THE UNITED STATES,
OR ANY OF THEIR DULY AUTHORIZED REPRESENTATIVES, SHALL HAVE ACCESS FOR
PURPOSES OF AUDIT AND EXAMINATIONS TO ANY BOOKS, DOCUMENTS, PAPERS, AND
RECORDS OF THE RECIPIENTS THAT ARE PERTINENT TO THE GRANTS RECEIVED
UNDER THIS CHAPTER.
"(E) THE PROVISION OF THIS SECTION SHALL APPLY TO ALL RECIPIENTS OF
ASSISTANCE UNDER THIS TITLE, WHETHER BY DIRECT GRANT OR CONTRACT FROM
THE INSTITUTE OR BY SUBGRANT OR SUBCONTRACT FROM PRIMARY GRANTEES OR
CONTRACTORS OF THE INSTITUTE.
"SEC. 4353. "18 USC 4353." THERE IS HEREBY AUTHORIZED TO BE
APPROPRIATED SUCH FUNDS AS MAY BE REQUIRED TO CARRY OUT THE PURPOSES OF
THIS CHAPTER."
SEC. 541. (A) THE SECTION TITLED "DECLARATION AND PURPOSE" IN TITLE
I OF THE OMNIBUS CRIME CONTROL AND SAFE STREETS ACT OF 1968, AS AMENDED
(82 STAT. 197; 84 STAT. 1881; 87 STAT. 197), "42 USC 3701." IS AMENDED
BY INSERTING IMMEDIATELY AFTER THE SECOND PARAGRAPH THEREOF THE
FOLLOWING NEW PARAGRAPH:
"CONGRESS FINDS FURTHER THAT THE HIGH INCIDENCE OF DELINQUENCY IN THE
UNITED STATES TODAY RESULTS IN ENORMOUS ANNUAL COST AND IMMEASURABLE
LOSS IN HUMAN LIFE, PERSONAL SECURITY, AND WASTED HUMAN RESOURCES, AND
THAT JUVENILE DELINQUENCY CONSTITUTES A GROWING THREAT TO THE NATIONAL
WELFARE REQUIRING IMMEDIATE AND COMPREHENSIVE ACTION BY THE FEDERAL
GOVERNMENT TO REDUCE AND PREVENT DELINQUENCY.".
(B) SUCH SECTION IS FURTHER AMENDED BY ADDING AT THE END THEREOF THE
FOLLOWING NEW PARAGRAPH:
"IT IS THEREFORE THE FURTHER DECLARED POLICY OF CONGRESS TO PROVIDE
THE NECESSARY RESOURCES, LEADERSHIP, AND COORDINATION TO (1) DEVELOP AND
IMPLEMENT EFFECTIVE METHODS OF PREVENTING AND REDUCING JUVENILE
DELINQUENCY; (2) TO DEVELOP AND CONDUCT EFFECTIVE PROGRAMS TO PREVENT
DELINQUENCY, TO DEVERT JUVENILES FROM THE TRADITIONAL JUVENILE JUSTICE
SYSTEM AND TO PROVIDE CRITICALLY NEEDED ALTERNATIVES TO
INSTITUTIONALIZATION; (3) TO IMPROVE THE QUALITY OF JUVENILE JUSTICE IN
THE UNITED STATES; AND (4) TO INCREASE THE CAPACITY OF STATE AND LOCAL
GOVERNMENTS AND PUBLIC AND PRIVATE AGENCIES TO CONDUCT EFFECTIVE
JUVENILE JUSTICE AND DELINQUENCY PREVENTION AND REHABILITATION PROGRAMS
AND TO PROVIDE RESEARCH, EVALUATION, AND TRAINING SERVICES IN THE FIELD
OF JUVENILE JUSTICE AND DELINQUENCY PREVENTION.".
SEC. 542. THE THIRD SENTENCE OF SECTION 203(A) OF TITLE I OF THE
OMNIBUS CRIME CONTROL AND SAFE STREETS ACT OF 1968 AS AMENDED (82 STAT.
197; 84 STAT. 1881; 87 STAT. 197), "42 USC 3723." IS AMENDED TO READ
AS FOLLOWS:
"THE STATE PLANNING AGENCY AND ANY REGIONAL PLANNING UNITS WITHIN THE
STATE SHALL, WITHIN THEIR RESPECTIVE JURISDICTIONS, BE REPRESENTATIVE OF
THE LAW ENFORCEMENT AND CRIMINAL JUSTICE AGENCIES INCLUDING AGENCIES
DIRECTLY RELATED TO THE PREVENTION AND CONTROL OF JUVENILE DELINQUENCY,
UNITS OF GENERAL LOCAL GOVERNMENT, AND PUBLIC AGENCIES MAINTAINING
PROGRAMS TO REDUCE AND CONTROL CRIME, AND SHALL INCLUDE REPRESENTATIVES
OF CITIZENS, PROFESSIONAL, AND COMMUNITY ORGANIZATIONS INCLUDING
ORGANIZATIONS DIRECTLY RELATED TO DELINQUENCY PREVENTION.".
SEC. 543. SECTION 303(A) OF TITLE I OF THE OMNIBUS CRIME CONTROL AND
SAFE STREETS ACT OF 1968 "42 USC 3733." IS AMENDED BY ADDING AFTER THE
FIRST SENTENCE THE FOLLOWING: "IN ORDER TO RECEIVE FORMULA GRANTS UNDER
THE JUVENILE JUSTICE AND DELINQUENCY PROVENTION ACT OF 1974 A STATE
SHALL SUBMIT A PLAN FOR CARRYING OUT THE PURPOSES OF THAT ACT IN
ACCORDANCE WITH THIS SECTION AND SECTION 223 OF THAT ACT.". "ANTE, P.
1119."
SEC. 544. SECTION 520 OF TITLE I OF THE OMNIBUS CRIME CONTROL AND
SAFE STREETS ACT OF 1968 "42 USC 3768." IS AMENDED BY (1) INSERTING
"(A)" AFTER "SEC. 520." AND (2) BY INSERTING AT THE END THEREOF THE
FOLLOWING:
"(B) IN ADDITION TO THE FUNDS APPROPRIATED UNDER SECTION 261(A) OF
THE JUVENILE JUSTICE AND DELINQUENCY PREVENTION ACT OF 1974, "ANTE, P.
1129." THE ADMINISTRATION SHALL EXPEND FROM OTHER LAW ENFORCEMENT
ASSISTANCE ADMINISTRATION APPROPRIATIONS, OTHER THAN THE APPROPRIATIONS
FOR ADMINISTRATION, AT LEAST THE SAME LEVEL OF FINANCIAL ASSISTANCE FOR
JUVENILE DELINQUENCY PROGRAMS AS WAS EXPENDED BY THE ADMINISTRATION
DURING FISCAL YEAR 1972.".
SEC. 545. PART F OF TITLE I OF THE OMNIBUS CRIME CONTROL AND SAFE
STREETS ACT OF 1968 "42 USC 3751." IS AMENDED BY ADDING AT THE END
THEREOF THE FOLLOWING NEW SECTIONS:
"SEC. 526. "42 USC 3772." THE ADMINISTRATOR IS AUTHORIZED TO ACCEPT
AND EMPLOY, IN CARRYING OUT THE PROVISIONS OF THIS ACT, VOLUNTARY AND
UNCOMPENSATED SERVICES NOTWITHSTANDING THE PROVISIONS OF SECTION 3679(
B) OF THE REVISED STATUTES (31 U.S.C. 665(B)).
"SEC. 527. "42 USC 3773." ALL PROGRAMS CONCERNED WITH JUVENILE
DELINQUENCY AND ADMINISTERED BY THE ADMINISTRATION SHALL BE ADMINISTERED
OR SUBJECT TO THE POLICY DIRECTION OF THE OFFICE ESTABLISHED BY SECTION
201(A) OF THE JUVENILE JUSTICE AND DELINQUENCY PREVENTION ACT OF 1974.
"ANTE, P. 1112."
"SEC. 528. "42 USC 3774." (A) THE ADMINISTRATOR IS AUTHORIZED TO
SELECT, EMPLOY, AND FIX THE COMPENSATION OF SUCH OFFICERS AND EMPLOYEES,
INCLUDING ATTORNEYS, AS ARE NECESSARY TO PERFORM THE FUNCTIONS VESTED IN
HIM AND TO PRESCRIBE THEIR FUNCTIONS.
"(B) NOTWITHSTANDING THE PROVISIONS OF SECTION 5108 OF TITLE 5,
UNITED STATES CODE, AND WITHOUT PREJUDICE WITH RESPECT TO THE NUMBER OF
POSITIONS OTHERWISE PLACED IN THE ADMINISTRATION UNDER SUCH SECTION
5108, THE ADMINISTRATOR MAY PLACE THREE POSITIONS IN GS-16, GS-17, AND
GS-18 UNDER SECTION 5332 OF SUCH TITLE 5.". "5 USC 5332 NOTE."
LEGISLATIVE HISTORY:
HOUSE REOPRTS: NO. 93 - 1135 ACCOMPANYING H.R. 15276 (COMM. ON
EDUCATION AND LABOR) AND NO. 93 - 1298 (COMM. OF CONFERENCE).
SENATE REPORTS: NO. 93 - 1011 (COMM. ON THE JUDICIARY) AND NO. 1103
(COMM. OF CONFERENCE).
CONGRESSIONAL RECORD, VOL. 120 (1974):
JULY 1, H.R. 15276 CONSIDERED AND PASSED HOUSE.
JULY 25, CONSIDERED AND PASSED SENATE.
JULY 31, CONSIDERED AND PASSED HOUSE, AMENDED, IN LIEU OF H.R.
15276.
AUG. 19, SENATE AGREED TO CONFERENCE REPORT.
AUG. 21, HOUSE AGREED TO CONFERENCE REPORT.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, VOL. 10, NO. 37:
SEPT. 8, PRESIDENTIAL STATEMENT.
PUBLIC LAW 93-414, 88 STAT 1095, HUD; SPACE SCIENCE, VETERANS, AND
CERTAIN OTHER INDEPENDANT AGENCIES APPROPRIATION ACT, 1975
CERTAIN OTHER
INDEPENDENT EXECUTIVE AGENCIES,
BOARDS, COMMISSIONS, CORPORATIONS, AND OFFICES FOR THE
FISCAL YEAR ENDING JUNE 30,
1975, AND FOR OTHER PURPOSES.
BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE
UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT THE FOLLOWING SUMS
ARE APPROPRIATED, OUT OF ANY MONEY IN THE TREASURY NOT OTHERWISE
APPROPRIATED, FOR THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT; FOR
SPACE, SCIENCE, VETERANS, AND CERTAIN OTHER INDEPENDENT EXECUTIVE
AGENCIES, BOARDS, COMMISSIONS, CORPORATIONS, AND OFFICES FOR THE FISCAL
YEAR ENDING JUNE 30, 1975, AND FOR OTHER PURPOSES, NAMELY:
HOUSING PRODUCTION AND MORTGAGE CREDIT
SALARIES AND EXPENSES, HOUSING PRODUCTION AND MORTGAGE CREDIT
PROGRAMS
FOR NECESSARY ADMINISTRATIVE EXPENSES OF HOUSING PRODUCTION AND
MORTGAGE CREDIT, NOT OTHERWISE PROVIDED FOR, $13,233,000: PROVIDED,
THAT NONE OF THESE ADMINISTRATIVE FUNDS MAY BE USED FOR THE
ADMINISTRATRATION OF THE SECTION 23 LEASING PROGRAM, OR ANY REPLACEMENT
PROGRAM, UNLESS THE AVAILABLE, UNUSED BALANCE OF CONTRACT AUTHORITY
UNDER THE SECTION 236 PROGRAM, OR ANY REPLACEMENT PROGRAM, IS MADE
AVAILABLE FOR COMMITMENT CONCURRENT WITH THE MAKING AVAILABLE FOR
COMMITMENT OF ANY CONTRACT AUTHORITY UNDER THE SECTION 23 PROGRAM, OR
ANY REPLACEMENT PROGRAM.
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
PAYMENT OF PARTICIPATION SALES INSUFFICIENCIES
FOR THE PAYMENT OF SUCH INSUFFICIENCIES AS MAY BE REQUIRED BY THE
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION, AS TRUSTEE, ON ACCOUNT OF
OUTSTANDING BENEFICIAL INTERESTS OR PARTICIPATIONS IN ASSETS OF THE
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (INCLUDING THE GOVERNMENT
NATIONAL MORTGAGE ASSOCIATION) AUTHORIZED BY THE INDEPENDENT OFFICES AND
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT APPROPRIATION ACT, 1968, TO
BE ISSUED PURSUANT TO SECTION 302(C) OF THE FEDERAL NATIONAL MORTGAGE
ASSOCIATION CHARTER ACT, AS AMENDED, "81 STAT. 341, 12 USC 1717."
$22,883,000.
HOUSING MANAGEMENT
HOUSING PAYMENTS
FOR THE PAYMENT OF ANNUAL CONTRIBUTIONS TO PUBLIC HOUSING AGENCIES IN
ACCORDANCE WITH SECTION 10 OF THE UNITED STATES HOUSING ACT OF 1937, AS
AMENDED (42 U.S.C. 1410); "ANTE, P. 666." FOR PAYMENTS AUTHORIZED BY
TITLE IV OF THE HOUSING ACT OF 1950, AS AMENDED (12 U.S.C. 1749 IT
SEQ.); FOR RENT SUPPLEMENT PAYMENTS AUTHORIZED BY SECTION 101 OF THE
HOUSING AND URBAN DEVELOPMENT ACT OF 1965, AS AMENDED (12 U.S.C.
1701S); AND FOR HOMEOWNERSHIP AND INTEREST REDUCTION PAYMENT AS
AUTHORIZED BY SECTIONS 235 AND 236, OF THE NATIONAL HOUSING ACT, AS
AMENDED (12 U.S.C. 1715Z--1), "ANTE, PP. 671, 672." $23,400,000: OF
WHICH NOT LESS THAN $450,000,000 SHALL BE USED ONLY FOR THE PAYMENT OF
OPERATING SUBSIDIES TO LOCAL HOUSING AUTHORITIES.
SALARIES AND EXPENSES, HOUSING MANAGEMENT PROGRAMS
FOR NECESSARY ADMINISTRATIVE EXPENSES OF PROGRAMS OF HOUSING
MANAGEMENT, NOT OTHERWISE PROVIDED FOR, $23,400,000: PROVIDED, THAT
ADMINISTRATIVE EXPENSES IN CONNECTION WITH THE REVOLVING FUND
(LIQUIDATING PROGRAMS) SHALL BE EXCLUSIVE OF EXPENSES NECESSARY IN THE
CASE OF DEFAULTED OBLIGATIONS TO PROTECT THE INTERESTS OF THE
GOVERNMENT.
URBAN RENEWAL PROGRAMS
FOR GRANTS FOR URBAN RENUWAL, FISCAL YEAR 1975, AS AN ADDITIONAL
AMOUNT FOR URBAN RENEWAL PROGRAMS, AS AUTHORIZED BY TITLE 1 OF THE
HOUSING ACT OF 1949, AS AMENDED (42 U.S.C. 1450 ET SEQ.), AND SECTION
314 OF THE HOUSING ACT OF 1954, AS AMENDED (42 U.S.C. 1452A),
$197,000,000, TO REMAIN AVAILABLE UNTIL EXPENDED: PROVIDED, THAT NO
PART OF ANY APPROPRIATION IN THIS ACT SHALL BE USED FOR ADMINISTRATIVE
EXPENSES IN CONNECTION WITH COMMITMENTS FOR GRANTS AGGREGATING MORE THAN
THE TOTAL OF AMOUNTS AVAILABLE IN THE CURRENT YEAR FROM THE AMOUNTS
AUTHORIZED FOR MAKING SUCH COMMITMENTS THROUHG JUNE 30, 1967, PLUS THE
ADDITIONAL AMOUNTS APPROPRIATED THEREFOR.
MODEL CITIES PROGRAMS
FOR FINANCIAL ASSISTANCE IN CONNECTION WITH PLANNING AND CARRYING OUT
COMPREHENSIVE CITY DEMONSTRATION PROGRAMS PURSUANT TO TITLE I OF THE
DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT OF 1966, AS
AMENDED (42 U.S.C. 3301), "ANTE, P. 686." $123,375,000, TO REMAIN
AVAILABLE UNTIL JUNE 30, 1976, OF WHICH $1,000,000 SHALL BE AVAILABLE
ONLY FOR REHABILITATION AND REDEVELOPMENT OF THE DEKALB COUNTY,
TENNESSEE, MODEL CITIES AREA DEVASTATED BY RECENT TORNADO DAMAGE.
COMPREHENSIVE PLANNING GRANTS
FOR COMPREHENSIVE PLANNING GRANTS AS AUTHORIZED BY SECTION 701 OF THE
HOUSING ACT OF 1954, AS AMENDED (40 U.S.C. 461), $100,000,000, TO REMAIN
AVAILABLE UNTIL EXPENDED.
SALARIES AND EXPENSES, COMMUNITY PLANNING AND DEVELOPMENT
PROGRAMS
FOR NECESSARY ADMINISTRATIVE EXPENSES OF PROGRAMS OF COMMUNITY
PLANNING AND DEVELOPMENT, NOT OTHERWISE PROVIDED FOR, $39,000,000.
FEDERAL INSURANCE ADMINISTRATION
FLOOD INSURANCE
FOR NECESSARY ADMINISTRATIVE EXPENSES, NOT OTHERWISE PROVIDED FOR, IN
CARRYING OUT THE NATIONAL FLOOD INSURANCE ACT OF 1968, AS AMENDED (42
U.S.C. CHAP. 50), "42 USC 4001 NOTE." $50,000,000.
POLICY DEVELOPMENT AND RESEARCH
RESEARCH AND TECHNOLOGY
FOR CONTRACTS, GRANTS AND NECESSARY EXPENSES OF PROGRAMS OF RESEARCH
AND STUDIES RELATING TO HOUSING AND URBAN PROBLEMS, NOT OTHERWISE
PROVIDED FOR, AS AUTHORIZED BY TITLE V OF THE HOUSING AND URBAN
DEVELOPMENT ACT OF 1970 (12 U.S.C. 1701Z--1 ET SEQ.), "ANTE, P. 738."
INCLUDING CARRYING OUT THE FUNCTIONS OF THE SECRETARY UNDER SECTION 1
(A) (1) (I) OF REORGANIZATION PLAN NO. 2 OF 1968, "49 USC 1608 NOTE."
$65,000,000, TO REMAIN AVAILABLE UNTIL JUNE 30, 1976.
SALARIES AND EXPENSES, POLICY DEVELOPMENT AND RESEARCH
FOR NECESSARY ADMINISTRATIVE EXPENSES OF PROGRAMS OF POLICY
DEVELOPMENT AND RESEARCH, NOT OTHERWISE PROVIDED FOR, $6,130,000.
FAIR HOUSING AND EQUAL OPPORTUNITY
FOR EXPENSES NECESSARY TO CARRY OUT THE FUNCTIONS OF THE SECRETARY
PURSUANT TO TITLE VIII OF THE CIVIL RIGHTS ACT OF 1968 (42 U.S.C.
3601), AND OTHER EQUAL OPPORTUNITY AND FAIR HOUSING PROGRAMS AUTHORIZED
BY LAW, NOT OTHERWISE PROVIDED FOR, $11,543,000.
DEPARTMENTAL MANAGEMENT
GENERAL DEPARTMENTAL MANAGEMENT
FOR NECESSARY ADMINISTRATIVE EXPENSES OF THE SECRETARY, NOT OTHERWISE
PROVIDED FOR, IN OVERALL PROGRAM PLANNING AND DIRECTION IN THE
DEPARTMENT, INCLUDING NOT TO EXCEED $2,500 FOR OFFICIAL RECEPTION AND
REPRESENTATION EXPENSES, $5,413,000.
SALARIES AND EXPENSES, OFFICE OF GENERAL COUNSEL
FOR NECESSARY EXPENSES OF THE OFFICE OF GENERAL COUNSEL, NOT
OTHERWISE PROVIDED FOR, $6,626,000.
ADMINISTRATION AND STAFF SERVICES
FOR ADMINISTRATIVE EXPENSES NECESSARY IN PROVIDING GENERAL
ADMINISTRATION AND STAFF SERVICES WITHIN THE DEPARTMENT, NOT OTHERWISE
PROVIDED FOR, $18,928,000.
REGIONAL MANAGEMENT AND SERVICES
FOR NECESSARY ADMINISTRATIVE EXPENSES, NOT OTHERWISE PROVIDED FOR, OF
MANAGEMENT AND PROGRAM COORDINATION IN THE REGIONAL OFFICES OF THE
DEPARTMENT, $28,563,000.
FEDERAL DISASTER ASSISTANCE ADMINISTRATION FUNDS APPROPRIATED
TO THE PRESIDENT
DISASTER RELIEF
FOR EXPENSES NECESSARY TO CARRY OUT THE FUNCTIONS OF THE DEPARTMENT
OF HOUSING AND URBAN DEVELOPMENT UNDER THE DISASTER RELIEF ACT OF 1970,
AS AMENDED, "42 USC 4401 NOTE." THE DISASTER RELIEF ACT OF 1974, "ANTE,
P. 143." AND REORGANIZATION PLAN NO. 1 OF 1973, "50 USC APP. 2771 NOTE."
AUTHORIZING ASSISTANCE TO STATES AND LOCAL GOVERNMENTS IN MAJOR
DISASTERS, $200,000,000,TO REMAIN AVAILABLE UNTIL EXPENDED: PROVIDED,
THAT NOT TO EXCEED 3 PER CENTUM OF THE FOREGOING AMOUNT SHALL BE
AVAILABLE FOR ADMINISTRATIVE EXPENSES.
AMERICAN BATTLE MONUMENTS COMMISSION
SALARIES AND EXPENSES
FOR NECESSARY EXPENSES, NOT OTHERWISE PROVIDED FOR, OF THE AMERICAN
BATTLE MONUMENTS COMMISSION, INCLUDING THE ACQUISITION OF LAND OR
INTEREST IN LAND IN FOREIGN COUNTRIES; PURCHASE AND REPAIR OF UNIFORMS
FOR CARETAKERS OF NATIONAL CEMETERIES AND MONUMENTS, OUTSIDE OF THE
UNITED STATES AND ITS TERRITORIES AND POSSESSIONS; NOT TO EXCEED
$67,000 FOR EXPENSES OF TRAVEL; RENT OF OFFICE AND GARAGE SPACE IN
FOREIGN COUNTRIES; PURCHASE (ONE FOR REPLACEMENT ONLY) AND HIRE OF
PASSENGER MOTOR VEHICLES; AND INSURANCE OF OFFICIAL MOTOR VEHICLES IN
FOREIGN COUNTRIES WHEN REQUIRED BY LAW OF SUCH COUNTRIES; $4,512,000:
PROVIDED, "36 USC 121B NOTE." THAT WHERE STATION ALLOWANCE HAS BEEN
AUTHORIZED BY THE DEPARTMENT OF THE ARMY FOR OFFICERS OF THE ARMY
SERVING THE ARMY AT CERTAIN FOREIGN STATIONS, THE SAME ALLOWANCE SHALL
BE AUTHORIZED FOR OFFICERS OF THE ARMED FORCES ASSIGNED TO THE
COMMISSION WHILE SERVING AT THE SAME FOREIGN STATIONS, AND THIS
APPROPRIATION IS HEREBY MADE AVAILABLE FOR THE PAYMENT OF SUCH
ALLOWANCE: PROVIDED FURTHER, "36 USC 122." THAT WHEN TRAVELING ON
BUSINESS OF THE COMMISSION, OFFICERS OF THE ARMED FORCES SERVING AS
MEMBERS OR AS SECRETARY OF THE COMMISSION MAY BE REIMBURSED FOR EXPENSES
AS PROVIDED FOR CIVILIAN MEMBERS OF THE COMMISSION: PROVIDED FURTHER,
"36 USC 122A." THAT THE COMMISSION SHALL REIMBURSE OTHER GOVERNMENT
AGENCIES, INCLUDING THE ARMED FORCES, FOR SALARY PAY, AND ALLOWANCES OF
PERSONNEL ASSIGNED TO IT.
DEPARTMENT OF DEFENSE--CIVIL CEMETERIAL EXPENSES, ARMY
SALARIES AND EXPENSES
FOR NECESSARY EXPENSES, AS AUTHORIZED BY LAW, OF MAINTENANCE,
OPERATION, AND IMPROVEMENT OF THE CEMETERY AT THE SOLDIERS' AND AIRMEN'S
HOME AND ARLINGTON NATIONAL CEMETERY, INCLUDING THE PURCHASE OF THREE
PASSENGER MOTOR VEHICLES OF WHICH TWO SHALL BE FOR REPLACEMENT ONLY,
$258,000, TO REMAIN AVAILABLE UNTIL EXPENDED: PROVIDED, THAT
REIMBURSEMENT SHALL BE MADE TO THE APPLICABLE MILITARY APPROPRIATION FOR
THE PAY AND ALLOWANCES OF ANY MILITARY PERSONNEL PERFORMING SERVICES
PRIMARILY FOR THE PURPOSES OF THIS APPROPRIATION.
FEDERAL COMMUNICATION COMMISSION
SALARIES AND EXPENSES
FOR NECESSARY EXPENSES FOR THE FEDERAL COMMUNICATIONS COMMISSION, AS
AUTHORIZED BY LAW, INCLUDING UNIFORMS OR ALLOWANCES THEREFOR, AS
AUTHORIZED BY LAW (5 U.S.C. 5901 - 5902); NOT TO EXCEED $250,000 FOR
LAND AND STRUCTURES; NOT TO EXCEED $35,000 FOR IMPROVEMENT AND CARE OF
GROUNDS AND REPAIRS TO BUILDINGS; NOT TO EXCEED $1,500 FOR OFFICIAL
RECEPTION AND REPRESENTATION EXPENSES; PURCHASE (NOT TO EXCEED EIGHT)
AND HIRE OF MOTOR VEHICLES; SPECIAL COUNSEL FEES; AND SERVICES AS
AUTHORIZED BY 5 U.S.C. 3109; $46,900,000: PROVIDED, THAT NOT TO EXCEED
$500,000 OF THE FOREGOING AMOUNT SHALL REMAIN AVAILABLE UNTIL JUNE 30,
1976, FOR RESEARCH AND POLICY STUDIES.
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
RESEARCH AND DEVELOPMENT
FOR NECESSARY EXPENSES, NOT OTHERWISE PROVIDED FOR, INCLUDING
RESEARCH, DEVELOPMENT, OPERATIONS, SERVICES, MINOR CONSTRUCTION,
MAINTENANCE, REPAIR, REHABILITATION AND MODIFICATION OF REAL AND
PERSONAL PROPERTY; TRACKING AND DATA RELAY SATELLITE SERVICES AS
AUTHORIZED BY SECTION 7 OF THE NATIONAL AERONAUTICS AND SPACE
ADMINISTRATION AUTHORIZATION ACT, 1975; "ANTE, P. 243." AND PURCHASE,
HIRE, MAINTAENANCE, AND OPERATION OF OTHER THAN ADMINISTRATIVE AIRCRAFT,
NECESSARY FOR THE CONDUCT AND SUPPORT OF AERONAUTICAL AND SPACE RESEARCH
AND DEVELOPMENT ACTIVITIES OF THE NATIONAL AERONAUTICS AND SPACE
ADMINISTRATION, $2,326,580,000, TO REMAIN AVAILABLE UNTIL EXPENDED.
CONSTRUCTION OF FACILITIES
FOR ADVANCE PLANNING, DESIGN, REHABILITATION, MOKIFICATION AND
CONSTRUCTION OF FACILITIES FOR THE NATIONAL AERONAUTICS AND SPACE
ADMINISTRATION, AND FOR THE ACQUISITION OR CONDEMNATION OF REAL
PROPERTY, AS AUTHORIZED BY LAW, $140,155,000, INCLUDING (1) $3,660,000
FOR ADDITION TO FLIGHT AND GUIDANCE SIMULATION LABORATORY, AMES RESEARCH
CENTER; (2) $890,000 FOR REHABILITATION AND MODIFICATION OF SCIENCE AND
APPLICATIONS LABORATORIES, GODDARD SPACE FLIGHT CENTER; (3) $1,220,000
FOR MODIFICATIONS FOR FIRE PROTECTION AND SAFETY, GODDARD SPACE FLIGHT
CENTER; (4) $150,000 FOR ACQUISITION OF LAND, JET PROPULSION LABORTORY;
(5) $3,790,000 FOR ADDITION FOR INTEGRATED SYSTEMS TESTING FACILITY,
JET PROPULSION LABORATORY; (6) $935,000 FOR MODIFICATION OF WATER
SUPPLY SYSTEM, LYNDON B. JOHNSON SPACE CENTER; (7) $515,000 FOR
MODIFICATION OF 6,000 P.S.I. AIR STORAGE SYSTEM, LANGLEY RESEARCH
CENTER; (8) $2,990,000 FOR REHABILITATION OF 16-FOOT TRANSONIC WIND
TUNNEL, LANGLEY RESEARCH CENTER; (9) $2,580,000 FOR MIDIFICATION OF
PROPULSION SYSTEMS LABORATORY, LEWIS RESEARCH CENTER; (10) $660,000 FOR
MODIFICATION OF ROCKET ENGINE TEST FACILITY, LEWIS RESEARCH CENTER;
(11) $4,060,000 FOR CONSTRUCTION OF X-RAY TELESCOPR DACILITY, MARSHALL
SPACE FLIGHT CENTER; (12) $1,370,000 FOR MODIFICATION OF BEACH
PROTECTION SYSTEM, WALLOPS STATION; (13) $6,040,000FOR CONSTRUCTION OF
INFRARED TELESCOPE FACILITY, MAUNA KEA, HAWAII; (14) $1,430,000 FOR
MODIFICATIONS FOR FIRE PROTECTION AND SAFETY AT VARIOUS TRACKING AND
DATA STATIONS; (15) $77,020,000 FOR SPACE SHUTTLE FACILITIES AT VARIOUS
LOCATIONS, AS FOLLOWS: (A) MODIFICATION OF THE VIBRATION AND ACOUSTIC
TEST FACILITY, LYNDON B. JOHNSON SPACE CENTER, (B) MODIFICATIONS FOR
CREW TRAINING FACILITIES, LYNDON B. JOHNSON SPACE CENTER, (C)
CONSTRUCTION OF MATERIALS STES FACILITY, WHITE SANDS TEST FACILITY, (D)
MODIFICATIONS FOR DYNAMIC TEST FACILITIES, MARSHALL SPACE FLIGHT CENTER,
AND NASA INDUSTRIAL PLANT, DOWNEY, CALIFORNIA, (E) MODIFICATIONS FOR
SOLID ROCKET BOOSTER STRUCTURAL TEST FACILITIES, MARSHALL SPACE FLIGHT
CENTER, (F) CONSTRUCTION OF ORBITER LANDING FACILITIES, JOHN F. KENNEDY
SPACE CENTER, (G) CONSTRUCTION OF ORBITER PROCESSING FACILITY, JOHN F.
KENNEDY SPACE CENTER, (H) MODIFICATIONS TO LAUNCH COMPLEX 39, JOHN F.
KENNEDY SPACE CENTER, (I) $1,940,000 FOR CONSTRUCTION OF AN ORBITER
HORIZONTAL FLIGHT TEST FACILITY, FLIGHT RESEARCH CENTER; (16)
$14,900,000 FOR MINOR REHABILITATION AND MODIFICATION OF FACILITIES AT
VARIOUS LOCATIONS; (17) $4,500,000 FOR MINOR CONSTRUCTION OF NEW
FACILITIES AND ADDITIONS TO EXISTING FACILITIES AT VARIOUS LOCATIONS;
(18) $10,900,000 FOR FACILITY PLANNING AND DESIGN NOT OTHERWISE PROVIDED
FOR; AND (19) $4,880,000 FOR AN ADDITION TO THE SYSTEMS DEVELOPMENT
LABORATORY (SDL) AT THE JET PROPULSION LABORATORY (JPL); TO REMAIN
AVAILABLE FOR OBLIGATION UNTIL JUNE 30, 1977: PROVIDED, THAT,
NOTWITHSTANDING THE LIMITATION ON THE AVAILABILITY OF FUNDS APPROPRIATED
UNDER THIS HEAD BY THIS APPROPRIATION ACT, AND EXCEPT WITH RESPECT TO
ITEMS (16) THROUGH (18) ABOVE, WHEN ANY ACTIVITY, FOR WHICH
APPROPRIATIONS UNDER THIS HEAD MADE BY THIS ACT ARE AVAILABLE, HAS BEEN
INITIATED BY THE INCURRENCE OF OBLIGATIONS THEREFOR, THE AMOUNT
AVAILABLE FOR SUCH ACTIVITY SHALL REMAIN AVAILABLE UNTIL EXPENDED.
RESEARCH AND PROGRAM MANAGEMENT
FOR NECESSARY EXPENSES OF RESEARCH IN GOVERNMENT LABORATORIES,
MANAGEMENT OF PROGRAMS AND OTHER ACTIVITIES OR THE NATIONAL AERONAUTICS
AND SPACE ADMINISTRATION, NOT OTHERWISE PROVIDED FOR, INCLUDING UNIFORMS
OR ALLOWANCES THEREFOR, AS AUTHORIZED BY LAW (5 U.S.C. 5901 - 5902);
AWARDS; HIRE, MAINTENANCE AND OPERATION OF ADMINISTRATIVE AIRCRAFT;
PURCHASE (NOT TO EXCEED SIXTEEN FOR REPLACEMENT ONLY) AND HIRE OF
PASSENGER MOTOR VEHICLES; AND MAINTENANCE AND REPAIR OF REAL AND
PERSONAL PROPERTY, AND NOT IN EXCESS OF $10,000 PER PROJECT FOR
CONSTRUCTION OF NEW FACILITIES AND ADDITIONS TO EXISTING FACILITIES, AND
NOT IN EXCESS OF $25,000 PER PROJECT FOR REHABILITATION AND MODIFICATION
OF FACILITIES; $740,000,000: PROVIDED, THAT CONTRACTS MAY BE ENTERED
INTO UNDER THIS APPROPRIATION FOR MAINTENANCE AND OPERATION OF
FACILITIES, AND FOR OTHER SERVICES, TO BE PROVIDED DURING THE NEXT
FISCAL YEAR: PROVIDED FURTHER, THAT NOT TO EXCEED $35,000 OF THE
FOREGOING AMOUNT SHALL BE AVAILABLE FOR SCIENTIFIC CONSULTATIONS OR
EXTRAORDINARY EXPENSE, TO BE EXPENDED UPON THE APPROVAL OR AUTHORITY OF
THE ADMINISTRATOR AND HIS DETERMINATION SHALL BE FINAL AND CONCLUSIVE.
GENERAL PROVISION
NOT TO EXCEED ONE-QUARTER OF 1 PER CENTUM OF THE APPROPRIATIONS MADE
AVAILABLE TO THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION BY THIS
ACT FOR "RESEARCH AND DEVELOPMENT" AND "RESEARCH AND PROGRAM MANAGEMENT"
MAY BE TRANSFERRED TO EITHER OF THE OTHER MENTIONED APPROPRIATION, BUT
NOT TO EXCEED THE AMOUNT AUTHORIZED THEREFOR BY NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION AUTHORIZATION ACT, 1975 (PUBLIC LAW 93 - 316).
"ANTE, P. 243."
NATIONAL SCIENCE FOUNDATION
SALARIES AND EXPENSES
FOR EXPENSES NECESSARY TO CARRY OUT THE PURPOSES OF THE NATIONAL
SCIENCE FOUNDATION ACT OF 1950, AS AMENDED (42 U.S.C. 1861 - 1875),
TITLE IX OF THE NATIONAL DEFENSE EDUCATION ACT OF 1958 (42 U.S.C. 1876
- 1879), AND THE ACT TO ESTABLISH A NATIONAL MEDAL OF SCIENCE (42 U.S.
C. 1880 - 1881), INCLUDING AWARD OF GRADUATE FELLOWSHIPS; SERVICES AS
AUTHORIZED BY 5 U.S.C. 3109; MAINTENANCE AND OPERATION OF AIRCRAFT AND
PURCHASE OF FLIGHT SERVICES FOR RESEARCH SUPPORT; HIRE OF PASSENGER
MOTOR VEHICLES; NOT TO EXCEED $35,900,000 FOR PROGRAM AND
REPRESENTATION EXPENSES; NOT TO EXCEED $5,000 FOR OFFICIAL RECEPTION
AND REPRESENTATION EXPENSES; NOT TO EXCEED $35,900,000 FOR PROGRAM
DEVELOPMENT AND MANAGEMENT; UNIFORMS OR ALLOWANCES THEREFOR, AS
AUTHORIZED BY LAW (5 U.S.C. 5901 - 5902); RENTAL OF CONFERENCE ROOMS IN
THE DISTRICT OF COLUMBIA; AND REIMBURSEMENT OF THE GENERAL SERVICES
ADMINISTRATION FOR SECURITY GUARD SERVICES; $661,500,000, TO REMAIN
AVAILABLE UNTIL JUNE 30, 1976: PROVIDED, THAT OF THE FOREGOING TOTAL
AMOUNT, NOT MORE NOR LESS THAN $13,200,000 SHALL BE USED ONLY FOR
GRADUATE STUDENT SUPPORT; NOT MORE NOR LESS THAN $65,150,000 SHALL BE
USED ONLY FOR SCIENCE EDUCATION IM PROVEMENT; NOT MORE NOR LESS THAN
$5,500,000 SHALL BE USED ONLY FOR INSTITUTIONAL IMPROVEMENT FOR SCIENCE;
AND NOT MORE THAN $50,000,000 SHALL BE AVAILABLE FOR RESEARCH APPLIED
TO NATIONAL NEEDS: PROVIDED FURTHER, THAT RECEIPTS FOR SCIENTIFIC
SUPPORT SERVICES AND MATERIALS FURNISHED BY THE NATIONAL RESEARCH
CENTERS MAY BE CREDITED TO THIS APPROPRIATION: PROVIDED FURTHER, THAT
IF AN INSTITUTION OF HIGHER EDUCATION RECEIVING FUNDS HEREUNDER
DETERMINES AFTER AFFORDING NOTICE AND OPPORTUNITY FOR HEARING TO AN
INDIVIDUAL HAS, AFTER THE DATE OF ENACTMENT OF THIS ACT, WILLFULLY
REFUSED TO OBEY A LAWFUL REGULATION OR ORDER OF SUCH INSTITUTION AND
THAT SUCH REFUSAL WAS OF A SERIOUS NATURE AND CONTRIBUTED TO THE
DISRUPTION OF THE ADMINISTRATION OF SUCH INSTITUTION, THEN THE
INSTITUTION SHALL DENY ANY FURTHER PAYMENT TO, OR FOR THE BENEFITS OF,
SUCH INDIVIDUAL.
SCIENTIFIC ACTIVITIES (SPECIAL FOREIGN CURRENCY PROGRAM)
FOR PAYMENTS IN FOREIGN CURRENCIES WHICH THE TREASURY DEPARTMENT
DETERMINES TO BE EXCESS TO THE NORMAL REQUIREMENTS OF THE UNITED STATES,
FOR SCIENTIFIC ACITIVITIES, AS AUTHORIZED BY LAW, $4,850,000, TO REMAIN
AVAILABLE UNTIL JUNE 30, 1976: PROVIDED, THAT THIS APPROPRIATION SHALL
BE AVAILABLE IN ADDITION TO OTHER APPROPRIATIONS TO THE NATIONAL SCIENCE
FOUNDATION, FOR PAYMENTS IN THE FOREGOING CURRENCIES.
RENEGOTIATION BOARD
SALARIES AND EXPENSES
FOR NECESSARY EXPENSES OF THE RENEGOTIATION BOARD, INCLUDING HIRE OF
PASSENGER MOTOR VEHICLES AND SERVICES AS AUTHORIZED BY 5 U.S.C. 3109,
$5,163,000.
SECURITIES AND EXCHANGE COMMISSION
SALARIES AND EXPENSES
FOR NECESSARY EXPENSES FOR THE SECURITIES AND EXCHANGE COMMISSION,
INCLUDING SERVICES AS AUTHORIZED BY 5 U.S.C. 3109, AND NOT TO EXCEED
$1,200,000 FOR TRAVEL EXPENSES AND, NOT TO EXCEED $2,000 FOR OFFICIAL
RECEPTION AND REPRESENTATION EXPENSES, $43,077,000.
SELECTIVE SERVICE SYSTEM
SALARIES AND EXPENSES
FOR NECESSARY FOR THE SELECTIVE SERVICE SYSTEM, INCLUDING EXPENSES OF
ATTENDANCE AT MEETINGS AND OF TRAINING FOR UNIFORMED PERSONNEL ASSIGNED
TO THE SELECTIVE SERVICE SYSTEM, AS AUTHORIZED BY LAW (5 U.S. C. 4101 -
4118) FOR CIVILIAN EMPLOYEES; AND EXPENSES OF THE NATIONAL SELECTIVE
SERVICE APPEAL BOARD; AND NOT TO EXCEED $1,000 FOR OFFICIAL RECEPTION
AND REPRESENTATION EXPENSES; $45,000,000 : PROVIDED, THAT DURING THE
CURRENT FISCAL YEAR, THE PRESIDENT MAY EXEMPT THIS APPROPRIATION FROM
THE PROVISIONS OF SUBSECTION (C) OF SECTION 3679 OF THE REVISED
STATUTES, AS AMENDED, "31 USC 665." WHENEVER HE DEEMS SUCH ACTION TO BE
NECESSARY IN THE INTEREST OF NATIONAL DEFENSE: PROVIDED FURTHER, THAT
NONE OF THE FUNDS APPROPRIATED BY THIS ACT MAY BE EXPENDED FOR OR IN
CONNECTION WITH THE INDUCTION OF ANY PERSON INTO THE ARMED FORCES OF THE
UNITED STATES.
VETERANS ADMINISTRATION
COMPENSATION AND PENSIONS
FOR THE PAYMENT OF COMPENSATION, PENSIONS, GRATUITIES, AND
ALLOWANCES, INCLUDING BURIAL AWARDS, PLOT ALLOWANCES, BURIAL FLAGS,
HEADSTONES AND GRAVE MARKERS, EMERGENCY AND OTHER OFFICERS' RETIREMENT
PAY, ADJUSTED-SERVICE CREDITS AND CERTIFICATES, AND OTHER BENEFITS AS
AUTHORIZED BY LAW; AND FOR PAYMENT OF AMOUNTS OF COMPROMISES OR
SETTLEMENTS UNDER 28 U.S.C. 2677 OF TORT CLAIMS POTENTIALLY SUBJECT TO
THE OFFSET PROVISIONS OF 38 U.S.C. 351, $7,283,000,000 TO REMAIN
AVAILABLE UNTIL EXPENDED.
READJUSTMENT BENEFITS
FOR THE PAYMENT OF READJUSTMENT AND REHABILITATION BENEFITS TO OR ON
BEHALF OF VETERANS AS AUTHORIZED BY LAW (38 U.S.C. CHAPTERS 21,31, AND
33 - 39), "38 USC 801, 1501, 1601." $2,676,000,000, TO REMAIN AVAILABLE
UNTIL EXPENDED.
VETERANS INSURANCE AND INDEMNITIES
FOR MILITARY AND NAVAL INSURANCE, NATIONAL SERVICE LIFE INSURANCE,
SERVICEMENS' INDEMNITIES, SERVICE-DISABLED VETERANS INSURANCE, AND
SOLDIERS' AND SAILORS' CIVIL RELIEF, $8,750,000, TO REMAIN AVAILABLE
UNTIL EXPENDED.
MEDICAL CARE
FOR EXPENSES NECESSARY FOR THE MAINTENANCE AND OPERATION OF
HOSPITALS, NURSING HOMES, AND DOMICILIARY FACILITIES; FOR FURNISHING,
AS AUTHORIZED BY LAW, INPATIENT AND OUTPATIENT CARE AND TREATMENT TO
BENEFICIARIES OF THE VETERANS ADMINISTRATION, INCLUDING CARE AND
TREATMENT IN FACILITIES NOT UNDER THE JURESDICTION OF THE VETERANS
ADMINISTRATION, AND FURNISHING RECREATIONAL FACILITIES, SUPPLIES AND
EQUIPMENT; FUNERAL, BURIAL AND OTHER EXPENSES INCIDENTAL THERETO FOR
BENEFICIARIES RECEIVING CARE IN VETERANS ADMINISTRATION FACILITIES;
REPAIRING, ALTERING, IMPROVING OR PROVIDING FACILITIES IN THE SEVERAL
HOSPITALS AND HOMES UNDER THE JUSRISDICTION OF THE VETERANS
ADMINISTRATION, NOT OTHERWISE PROVIDED FOR, EITHER BY CONTRACT OR BY THE
HIRE OF TEMPORARY EMPLOYEES AND PURCHASE OF MATERIALS; UNIFORMS OR
ALLOWANCE THEREFOR AS AUTHORIZED BY LAW (5 U.S.C. 5901 - 5902); AND AID
TO STATE HOMES AS AUTHORIZED BY LAW (38 U.S.C. 641); $3,187,644,000,
PLUS REIMBURSEMENTS: PROVIDED, THAT ALLOTMENTS AND TRANSFERS MAY BE
MADE FROM THIS APPROPRIATION TO THE PUBLIC HEALTH SERVICE OF THE
DEPARTMENT OF HEALTH, EXUCATION, AND WELFARE, AND THE ARMY, NAVY, AND
AIR FORCE OF THE DEPARTMENT OF DEFENSE, FOR DISBURSEMENTS BY THEM UNDER
THE VARIOUS HEADINGS OF THEIR APPLICABLE APPROPRIATIONS, OF SUCH AMOUNTS
AS ARE NECESSARY FOR THE CARE AND TREATMENT OF BENEFECIARIES OF THE
VETERANS ADMINISTRATION.
MEDICAL AND PROSTHETIC RESEARCH
FOR EXPENSES NECESSARY FOR CARRYING OUT PROGRAMS OF MEDICAL AND
PROSTHETIC RESEARCH AND DEVELOPMENT, AS AUTHORIZED BY LAW, TO REMAIN
AVAILABLE UNTIL EXPENDED, $89,000,000, PLUS REIMBURSEMENTS.
MEDICAL ADMINISTRATION AND MISCELLANEOUS OPERATING EXPENSES
FOR EXPENSES NECESSARY FOR ADMINISTRATION OF THE MEDICAL, HOSPITAL,
DOMICILIARY, CONSTRUCTION AND SUPPLY, RESEARCH, EMPLOYEE EDUCATION AND
TRAINING ACTIVITIES, AS AUTHORIZED BY LAW, AND FOR CARRYING OUT THE
PROVISIONS OF SECTION 5055, TITLE 38, UNITED STATES CODE, RELATING TO
PILOT PROGRAMS AND GRANTS FOR EXCHANGE FO MEDICAL INFORMATION,
$37,508,000, PLUS REIMBURSEMENTS.
GENERAL OPERATING EXPENSES
FOR NECESSARY OPERATING EXPENSES OF THE VETERANS ADMINISTRATION, NOT
OTHERWISE PROVIDED FOR, INCLUDING UNIFORMS OR ALLOWANCES THEREFOR, AS
AUTHORIZED BY LAW; NOT TO EXCEED $2,500 FOR OFFICIAL RECEPTION AND
REPRESENTATION EXPENSES; CEMETERIAL EXPENSES AS AUTHORIZED BY LAW,
PURCHASE OF ONE PASSENGER MOTOR VEHICLE (MEDIUM SEDAN FOR REPLACEMENT
ONLY) AND HIRE OF PASSENGER MOTOR VEHICLES; AND REIMBURSEMENT OF THE
GENERAL SERVICES ADMINISTRATION FOR SECURITY GUARD SERVICES;
$420,000,000.
CONSTRUCTION, MAJOR PROJECTS
FOR CONSTRUCTING, ALTERING, EXTENDING AND IMPROVING ANY OF THE
FACILITIES UNDER THE JURISDICTION OR FOR THE USE OF THE VETERANS
ADMINISTRATION, OR FOR ANY OF THE PURPOSES SET FORTH IN SECTIONS 5001,
5002 AND 5004 OF THIS TITLE 38, UNITED STATES CODE, INCLUDING PLANNING,
ARCHITECTURAL AND ENGINEERING SERVICES, AND SITE ACQUISITION, WHERE THE
ESTIMATED COST OF A PROJECT IS $1,000,000 OR MORE, $223,925,000, TO
REMAIN AVAILABLE UNTIL EXPENDED: PROVIDED, THAT NONE OF THESE FUNDS
SHALL BE USED FOR ANY PROJECT WHICH HAS NOT BEEN CONSIDERED AND
APPRROVED BY THE CONGRESS IN THE BUDGETARY PROCESS.
CONSTRUCTION, MINOR PROJECTS
FOR CONSTRUCTING, ALTERING, EXTENDING, AND IMPROVING ANY OF THE
FACILITIES UNDER THE JURISDICTION OR FOR THE USE OF THE VETERANS
ADMINISTRATION, INCLUDING PLANNING, ARCHITECTURAL AND ENGINEERING
SERVICES, AND SITE ACQUISITION, OR FOR ANY OF THE PURPOSES SET FORTH IN
SECTIONS 5001, 5002 AND 5004 OF TITLE 98, UNITED STATES CODE, WHERE THE
ESTIMATED COST OF A PROJECT IS LESS THAN $1,000,000, AND FOR NECESSARY
EXPENSES OF THE OFFICE OF CONSTRUCTION, $43,796,000, TO REMAIN AVAILABLE
UNTIL EXPENDED.
GRANTS FOR CONSTRUCTION OF STATE EXTENDED CARE FACILITIES
FOR GRANTS TO ASSIST THE SEVERAL STATES TO CONSTRUCT STATE NURSING
HOME FACILITIES AND TO REMODEL, MODIFY OR ALTER EXISTING HOSPITAL AND
DOMICILIARY FACILITIES IN STATE HOMES, FOR FURNISHING CARE TO VETERANS,
AS AUTHORIZED BY LAW (38 U.S.C. 644 AND 5031 - 5037), $9,700,000, TO
REMAIN AVAILABLE UNTIL JUNE 30, 1977.
GRANTS TO THE REPUBLIC OF THE PHILIPPINES
FOR PAYMENT TO THE REPUBLIC OF THE PHILIPPINES OF GRANTS, AS
AUTHORIZED BY LAW (38 U.S.C. 631 - 634), $2,050,000, OF WHICH $50,000
FOR HOSPITAL EQUIPMENT, PLANT, AND FACILITIES REHABILITATION GRANTS
SHALL REMAIN AVAILABLE UNTIL EXPENDED.
PAYMENT OF PARTICIPATION SALES INSUFFICIENCIES
FOR THE PAYMENT OF SUCH INSUFFICIENCIES AS MAY BE REQUIRED BY THE
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION, AS TRUSTEE, ON ACCOUNT OF
OUTSTANDING BENEFICIAL INTERESTS OR PARTICIPATION IN DIRECT LOAN
REVOLVING FUND ASSETS OR LOAN GUARANTY REVOLVING FUND ASSETS, AUTHORIZED
BY THE INDEPENDENT OFFICES, AND DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT APPROPRIATION ACT, 1968, "81 STAT. 352." TO BE ISSUED
PURSUANT TO SECTION 302 (C) OF THE FEDERAL NATIONAL MORTGAGE ASSOCIATION
CHARTER ACT, AS AMENDED (12 U.S.C. 1717 (C), $1,828,000.
LOAN GUARANTY REVOLVING FUND
DURING THE CURRENT FISCAL YEAR, THE LOAN GUARANTY REVOLVING FUND
SHALL BE AVAILABLE FOR EXPENSES, BUT NOT TO EXCEED $500,000,000, FOR
PROPERTY ACQUISITIONS AND OTHER LOAN GUARANTY AND INSURANCE OPERATIONS
UNDER CHAPTER 37, TITLE 38, UNITED STATES CODE, "38 USC 1801." EXCEPT
ADMINISTRATIVE EXPENSES, AS AUTHORIZED BY SECTION 1824 OF SUCH TITLE:
PROVIDED, THAT THE UNOBLIGATED BALANCES INCLUDING RETAINED EARNINGS OF
THE DIRECT LOAN REVOLVING FUND SHALL BE AVAILABLE, DURING THE CURRENT
FISCAL YEAR, FOR TRANSFER TO THE LOAN GUARANTY REVOLVING FUND IN SUCH
AMOUNTS AS MAY BE NECESSARY TO PROVIDE FOR THE TIMELY PAYMENT OF
OBLIGATIONS OF SUCH FUND AND THE ADMINISTRATOR OF VETERANS AFFAIRS SHALL
NOT BE REQUIRED TO PAY INTEREST ON AMOUNTS SO TRANSFERRED AFTER THE TIME
OF SUCH TRANSFER.
VOCATIONAL REHABILITATION REVOLVING FUND
TO INCREASE THE "VOCATIONAL REHABILITATION REVOLVING FUND"
ESTABLISHED BY THE ACT OF MARCH 24, 1943, AND CONTINUED BY 38 U.S.C.
1507, $97,000.
ADMINISTRATIVE PROVISIONS
NOT TO EXCEED 5 PER CENTUM OF ANY APPROPRIATION FOR THE CURRENT
FISCAL YEAR FOR "COMPENSATION AND PENSIONS", "READJUSTMENT BENEFITS",
AND "VETERANS INSURANCE AND INDEMNITIES" MAY BE TRANSFERRED TO ANY OTHER
OF THE MENTIONED APPROPRIATIONS, BUT NOT TO EXCEED 10 PER CENTUM OF THE
APPROPRIATIONS SO AUGMENTED.
APPROPRIATIONS AVAILABLE TO THE VETERANS ADMINISTRATION FOR THE
CURRENT FISCAL YEAR FOR SALARIES AND EXPENSES SHALL BE AVAILABLE FOR
SERVICES AS AUTHORIZED BY 5 U.S.C. 3109.
NO PART OF THE APPROPRIATIONS IN THIS ACT FOR THE VETERANS
ADMINISTRATION (EXCEPT THE APPROPRIATIONS FOR "CONSTRUCTION, MAJOR
PROJECTS", AND "CONSTRUCTION, MINOR PROJECTS") SHALL BE AVAILABLE FOR
THE PURCHASE OF ANY SITE FOR OR TOWARD THE CONSTRUCTION OF ANY NEW
HOSPITAL OR HOME.
NO PART OF THE FOREGOING APPROPRIATIONS SHALL BE AVAILABLE FOR
HOSPITALIZATION OR EXAMINATION OF ANY PERSONS EXCEPT BENEFICIARIES
ENTITLED UNDER THE LAWS BESTOWING SUCH BENEFITS TO VETERANS, UNLESS
REIMBURSEMENT OF COST IS MADE TO THE APPROPRIATION AT SUCH RATES AS MAY
BE FIXED BY THE ADMINISTRATOR OF VETERANS AFFAIRS.
THE FOLLOWING CORPORATIONS AND AGENCIES, RESPECTIVELY, ARE HEREBY
AUTHORIZED TO MAKE SUCH EXPENDITURES, WITHIN THE LIMITS OF FUNDS AND
BORROWING AUTHORITY AVAILABLEL TO EACH SHCH CORPORATION OR AGENCY AND IN
ACCORD WITH LAW, AND TO MAKE SUCH CONTRACTS AND COMMITMENTS WITHOUT
REGARD TO FISCAL YEAR LIMITATIONS AS PROVIDED BY SECTION 104 OF THE
GOVERNMENT CORPORATION CONTROL ACT, AS AMENDED, "31 USC 849." AS MAY BE
NECESSARY IN CARRYING OUT THE PROGRAMS SET FORTH IN THE BUDGET FOR THE
CURRENT FISCAL YEAR FOR SUCH CORPORATION OR AGENCY EXCEPT AS HEREINAFTER
PROVIDED.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
LIMITATION ON ADMINISTRATIVE AND NONADMINISTRATIVE EXPENSES,
FEDERAL HOUSING ADMINISTRATION
FOR ADMINISTRATIVE EXPENSES IN CARRYING OUT DUTIES IMPOSED BY OR
PURSUANT TO LAW, NOT TO EXCEED $13,803,000 OF THE VARIOUS FUNDS OF THE
FEDERAL HOUSING ADMINISTRATION SHALL BE AVAILABLE, IN ACCORDANCE WITH
THE NATIONAL HOUSING ACT, AS AMENDED (12 U.S.C. 1701): PROVIDED, THAT
FUNDS SHALL BE AVAILABLE FOR CONTRACT ACTUARIAL SERVICES (NOT TO EXCEED
$1,500): PROVIDED FURTHER, THAT NONADMINISTRATIVE EXPENSES CLASSIFIED
BY SECTION 2 OF PUBLIC LAW 387, APPROVED OCTOBER 25, 1949, "12 USC
1702." SHALL NOT EXCEED $190,500,000.
LIMITATION ON ADMINISTRATIVE EXPENSES, GOVERNMENT NATIONAL
MORTGAGE ASSOCIATION
NOT TO EXCEED $8,080,000 SHALL BE AVAILABLE FOR ADMINISTRATIVE
EXPENSES, WHICH SHALL BE ON AN ACCRUAL BASIS, AND SHALL BE EXCLUSIVE OF
INTEREST PAID, EXPENSES (INCLUDING EXPENSES FOR FISCAL AGENCY SERVICES
PERFORMED ON A CONTRACT OR FEE BASIS ) IN CONNECTION WITH THE ISSUANCE
AND SERVICING OF SECURITIES, DEPRECIATION, PROPERLY CAPITALIZED
EXPENDITURES, FEES FOR SERVICING MORTGAGES, EXPENSES (INCLUDING SERVICES
PERFORMED ON A FORCE ACCOUNT, CONTRACT OR FEE BASIS, BUT NOT INCLUDING
OTHER PERSONAL SERVICES) IN CONNECTION WITH THE ACQUISITION, PROTECTION,
OPERATION, MAINTENANCE, IMPROVEMENT, OR DISPOSITION OF REAL OR PERSONAL
PROPERTY BELONGING TO SAID ASSOCIATION OR IN WHICH IT HAS AN INTEREST,
COST OF SALARIES, WAGES, TRAVEL, AND OTHER EXPENSES OF PERSONS EMPLOYED
OUTSIDE THE CONTINENTAL UNITED STATES, AND ALL ADMINISTRATIVE EXPENSES
REIMBURSABLE FROM OTHER GOVERNMENT AGENCIES AND FROM THE FEDERAL
NATIONAL MORTGAGE ASSOCIATION: PROVIDED, THAT THE DISTRIBUTION OF
ADMINISTRATIVE EXPENSES TO THE ACCOUNTS OF THE ASSOCIATION SHALL BE MADE
IN ACCORDANCE WITH GENERALLY RECOGNIZED ACCOUNTING PRINCIPLES AND
PRACTICES.
FEDERAL HOME LOAN BANK BOARD
LIMITATION ON ADMINISTRATIVE AND NONADMINISTRATIVE EXPENSES,
FEDERAL HOME LOAN BANK BOARD
NOT TO EXCEED A TOTAL OF $10,400,000 SHALL BE AVAILABLE FOR
ADMINISTRATIVE EXPENSES OF THE FEDERAL HOME LOAN BANK BOARD, WHICH MAY
PROCURE SERVICES AS AUTHORIZED BY 5 U.S.C. 3108, AND CONTRACTS FOR SUCH
SERVICES WITH ONE ORGANIZATIONS MAY BE RENEWED ANNUALLY, AND UNIFORMS OR
ALLOWANCES THEREFOR IN ACCORDANCE WITH LAW (5 U.S.C. 5901 - 5902), AND
SAID AMOUNT SHALL DERIVED FROM FUNDS AVAILABLE TO THE FEDERAL HOME LOAN
BANK BOARD, INCLUDING THOSE IN THE FEDERAL HOME LOAN BANK BOARD
REVOLVING FUND AND RECEIPTS OF THE BOARD FOR THE CURRENT FISCAL YEAR AND
PRIOR FISCAL YEARS, AND THE BOARD MAY UTILIZE AND MAY MAKE PAYMENT FOR
SERVICES AND FACILITIES OF THE FEDERAL HOME LOAN BANKS, THE FEDERAL
RESERVE BANKS, THE FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION, THE
FEDERAL HOME LOAN MORTGAGE CORPORATION, AND OTHER AGENCIES OF THE
GOVERNMENT (INCLUDING PAYMENT FOR OFFICE SPACE): PROVIDED, THAT ALL
NECESSARY EXPENSES IN CONNECTION WITH THE CONSERVATORSHIP OR LIQUIDATION
OF INSTITUTIONS INSURED BY THE FEDERAL SAVINGS AND LOAN INSURANCE
CORPORATION, LIQUIDATION OR HANDLING OF ASSETS OF OR DERIVED FROM SUCH
INSURED INSTITUTIONS, PAYMENT OF INSURANCE, AND ACTION FOR OR TOWARD THE
AVOIDANCE, TERMINATION, OR MINIMIZING OF LOSSES IN THE CASE OF SUCH
INSURED INSTITUTIONS, OR ACTIVITIES RELATING TO SECTION 5A(F) OR 6(I) OF
THE FEDERAL HOME LOAN BANK ACT, "12 USC 1425A, 1426." SECTION 5(D) OF
THE HOME OWNERS' LOAN ACT OF 1933, "12 USC 1464." OR SECTION 406(C),
407, OR 408 OF THE NATIONAL HOUSING ACT, "12 USC 1729 - 1730A." AND ALL
NECESSARY EXPENSES (INCLUDING SERVICES PERFORMED ON A CONTRACT OR FEE
BASIS, BUT NOT INCLUDING OTHER PERSONAL SERVICES) IN CONNECTION WITH THE
HANDLING, INCLUDING THE PURCHASE, SALE, AND EXCHANGE, OF SECURITIES ON
BEHALF OF FEDERAL HOME LOAN BANKS, AND THE SALE, ISSUANCE, AND
RETIREMENT OF, OR PAYMENT OF INTEREST ON, DEBENTURES OR BONDS, UNDER THE
FEDERAL HOME LOAN BANK ACT, AS AMENDED, SHALL BE CONSIDERED AS
NONADMINISTRATIVE EXPENSES FOR THE PURPOSES HEREOF: PROVIDED FURTHER,
"12 USC 1428A NOTE." THAT MEMBERS AND ALTERNATES OF THE FEDERAL SAVINGS
AND LOAN ADVISORY COUNCIL SHALL BE ENTITLED TO REIMBURSEMENT FROM THE
BOARD AS APPROVED BY THE BOARD FOR TRANSPORTATION EXPENSES INCURRED IN
ATTENDANCE AT MEETINGS OF OR CONCERNED WITH THE WORK OF SUCH COUNCIL AND
MAY BE PAID IN LIEU OF SUBSISTENCE PER DIEM NOT TO EXCEED THE DOLLAR
AMOUNT SET FORTH IN 5 U. S.C. 5703(D) (1) : PROVIDED FURTHER, THAT
EXPENSES OF ANY FUNCTIONS OF SUPERVISION (EXCEPT OF FEDERAL HOME LOAN
BANKS) VESTED IN OR EXERCISABLY BY THE BOARD SHALL BE CONSIDERED AS
NONADMINISTRATIVE EXPENSES: PROVIDED FURTHER, THAT NOT TO EXCEED $1,000
SHALL BE AVAILABLE FOR OFFICIAL RECEPTION AND REPRESENTATION EXPENSES:
PROVIDED FURTHER, THAT, NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS
ACT, EXCEPT FOR THE LIMITATION IN AMOUNT HEREINBEFORE SPECIFIED, THE
ADMINISTRATIVE EXPENSES AND OTHER OBLIGATIONS OF THE BOARD SHALL BE
INCURRED, ALLOWED, AND PAID IN ACCORDANCE WITH THE PROVISIONS OF THE
FEDERAL HOME LOAN BANK ACT OF JULY 22, 1932, AS AMENDED (12 U.S.C. 1421
- 1449): PROVIDED FURTHER, THAT THE DOLLAR LIMITATION OF SECTION 18 (C)
OF THE FEDERAL HOME LOAN BANK ACT "12 USC 1438." IS FURTHER INCREASED BY
THE CUMULATIVE ASSESSMENTS AND INTEREST-BEARING OR OTHER ADVANCES FOR
PURPOSES THEREOF, WHICH SHALL INCLUDE RELATED COMMERCIAL FACILITIES,
HEREBY AUTHORIZED TO BE REQUIRED BY THE BOARD AS NONADMINISTRATIVE
EXPENDITURES OF AGENCIES UNDER ADMINISTRATION OR SUPERVISION OF THE
BOARD OR OF A BODY COMPOSED OF ITS MEMBERS, ALL OF WHICH ARE HEREBY
INCLUDED IN THE REFERENCES THEREIN TO AGENCIES UNDER THE BOARD'S
SUPERVISION, AND THE BOARD IS HEREBY AUTHORIZED TO ADJUST AS IT DEEMS
EQUITABLE THE INTEREST ON ADVANCES NOW OR HEREAFTER OUTSTANDING
THEREUNDER OR HEREUNDER: PROVIDED FURTHER, THAT THE NONADMINISTRATIVE
EXPENSES (EXCEPT THOSE INCLUDED IN THE FIRST PROVISO HEREOF) FOR
SUPERVISION AND EXAMINATION OF FEDERAL AND STATE CHARTERED INSTITUTIONS
(OTHER THAN SPECIAL EXAMINATIONS DETERMINED BY THE BOARD TO BE
NECESSARY) SHALL NOT EXCEED $20,736,000.
LIMITATION ON ADMINISTRATIVE EXPENSES, FEDERAL SAVINGS AND LOAN
INSURANCE CORPORATION
NOT TO EXCEED $772,000 SHALL BE AVAILABLE FOR ADMINISTRATIVE
EXPENSES, WHICH SHALL BE ON AN ACCRUAL BASIS AND SHALL BE EXCLUSIVE OF
INTEREST PAID, DEPRECIATION, PROPERLY CAPITALIZED EXPENDITURES, EXPENSES
IN CONNECTION WITH LIQUIDATION OF INSURED INSTITUTIONS OR ACTIVITIES
RELATING TO SECTION 406(C), 407, OR 408 OF THE NATIONAL HOUSING ACT, "12
USC 1729 - 1730A." LIQUIDATION OR HANDLING OF ASSETS OF OR DERIVED FROM
INSURED INSTITUTIONS, PAYMENT OF INSURANCE, AND ACTION FOR OR TOWARD THE
AVOIDANCE, TERMINATION, OR MINIMIZING OF LOSSES IN THE CASE OF INSURED
INSTITUTIONS, LEGAL FEES AND EXPENSES AND PAYMENTS FOR EXPENSES OF THE
FEDERAL HOME LOAN BANK BOARD DETERMINED BY SAID BOARD TO BE PROPERLY
ALLOCABLE TO SAID CORPORATION, AND SAID CORPORATION MAY UTILIZE AND MAY
MAKE PAYMENTS FOR SERVICES AND FACILITIES OF THE FEDERAL HOME LOAN
BANKS, THE FEDERAL RESERVE BANKS, THE FEDERAL HOME LOAN BANK BOARD, THE
FEDERAL HOME LOAN MORTGAGE CORPORATION, AND OTHER AGENCIES OF THE
GOVERNMENT: PROVIDED, THAT, NOTWITHSTANDING ANY OTHER PROVISIONS OF
THIS ACT, EXCEPT FOR THE LIMITATION IN AMOUNT HEREINBEFORE SPECIFIED,
THE ADMINISTRATIVE EXPENSES AND OTHER OBLIGATIONS OF SAID CORPORATION
SHALL BE INCURRED, ALLOWED, AND PAID IN ACCORDANCE WITH TITLE IV OF THE
ACT OF JUNE 27, 1934, AS AMENDED (12 U.S.C. 1724 - 1730B).
SEC. 401. WHERE APPROPRIATIONS IN TITLES I AND II OF THIS ACT AS
EXPENDABLE FOR TRAVEL EXPENSES OF EMPLOYEES AND NO SPECIFIC LIMITATION
HAS BEEN PLACED THEREON, THE EXPENDITURES FOR SUCH TRAVEL EXPENSES MAY
NOT EXCEED THE AMOUNTS SET FORTH THEREFOR IN THE BUDGET ESTIMATES
SUBMITTED FOR THE APPROPRIATIONS: PROVIDED, THAT THIS SECTION SHALL NOT
APPLY TO TRAVEL PERFORMED BY UNCOMPENSATED OFFICIALS OF LOCAL BOARDS AND
APPEAL BOARDS OF THE SELECTIVE SERVICE SYSTEM; TO TRAVEL PERFORMED
DIRECTLY IN CONNECTION WITH CARE AND TREATMENT OF MEDICAL BENEFECIARIES
OF THE VETERANS ADMINISTRATION; OR TO PAYMENTS TO INTERAGENCY MOTOR
POOLS WHERE SEPARATELY SET FORTH IN THE BUDGET SCHEDULES.
SEC. 402. APPROPRIATIONS AND FUNDS AVAILABLE FOR THE ADMINISTRATIVE
EXPENSES OF THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT AND THE
SELECTIVE SERVICE SYSTEM SHALL BE AVAILABLE IN THE CURRENT FISCAL YEAR
FOR PURCHASE OF UNIFORMS, OR ALLOWANCES THEREOF, AS AUTHORIZED BY LAW (5
U.S.C. 5901 - 5902); HIRE OF PASSENGER MOTOR VEHICLES; AND SERVICES AS
AUTHORIZED BY 5 U.S.C. 3109.
SEC. 403. FUNDS MADE AVAILABLE FOR THE DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT UNDER TITLE III OF THIS ACT SHALL BE AVAILABLE,
WITHOUT REGARD TO THE LIMITATIONS ON ADMINISTRATIVE EXPENSES, FOR LEGAL
SERVICES ON A CONTRACT OR FEE BASIS, AND FOR UTILIZING AND MAKING
PAYMENT FOR SERVICES AND FACILITIES OF FEDERAL NATIONAL MORTGAGE
ASSOCIATION OR GOVERNMENT NATIONAL MORTGAGE ASSOCIATION, FEDERAL RESERVE
BANKS OR ANY MEMBER THEREOF, FEDERAL HOME LOAN BANKS, AND ANY INSURED
BANK WITHIN THE MEANING OF THE FEDERAL HOME LOAN BANKS, AND ANY INSURED
BANK WITHI THE MEANING OF THE FEDERAL DEPOSIT INSURANCE CORPORATION ACT,
AS AMENDED (12 U.S.C. 1811 - 1831).
SEC. 404. NONE OF THE FUNDS PROVIDED IN THIS ACT MAY BE USED FOR
PAYMENT, THROUGH GRANTS OR CONTRACTS, TO RECIPIENTS THAT DO NOT SHARE IN
THE COST OF CONDUCTING RESEARCH RESULTING FROM PROPOSALS FOR PROJECTS
NOT SPECIFICALLY SOLICITED BY THE GOVERNMENT: PROVIDED, THAT THE EXTENT
OF COST SHARING BY THE RECIPIENT SHALL REFLECT THE MUTUALITY OF INTEREST
OF THE GRANTEE OR CONTRACTOR AND THE GOVERNMENT IN THE RESEARCH.
SEC. 405. NO PART OF ANY APPROPRIATION, FUNDS, OR OTHER AUTHORITY
CONTAINED IN THIS ACT SHALL BE AVAILABLE FOR PAYING TO THE ADMINISTRATOR
OF THE GENERAL SERVICES ADMINISTRATION IN EXCESS OF 90 PER CENTUM OF THE
STANDARD LEVEL USER CHARGE ESTABLISHED PURSUANT TO SECTION 210(J) OF THE
FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 1949, AS AMENDED,
"40 USC 492." FOR SPACE AND SERVICES.
SEC. 406. NO PART OF ANY APPROPRIATIONS CONTAINED IN THIS ACT SHALL
REMAIN AVAILABLE FOR OBLIGATION BEYOND THE CURRENT FISCAL YEAR UNLESS
EXPRESSLY SO PROVIDED HEREIN.
THIS ACT MAY BE CITED AS THE "DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT; SPACE, SCIENCE, VETERANS, AND CERTAIN OTHER INDEPENDENT
AGENCIES APPROPRIATION ACT, 1975".
LEGISLATIVE HISTORY:
HOUSE REPORTS: NO. 93 - 1139 (COMM. ON APPROPRIATIONS) AND NO. 93 -
1310 (COMM. OF CONFERENCE).
SENATE REPORTS: NOS. 93 - 1056 AND 93 - 1091 (COMM. ON
APPROPRIATIONS).
CONGRESSIONAL RECORD, VOL. 120 (1974):
JUNE 26, CONSIDERED AND PASSED HOUSE.
AUG. 16, CONSIDERED AND PASSED SENATE, AMENDED.
AUG. 22, HOUSE AND SENATE AGREED TO CONFERENCE REPORT.
PUBLIC LAW 93-413, 88 STAT 1093, NATIONAL SCIENCE FOUNDATION
AUTHORIZATION ACT OF 1975
BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE
UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT THERE IS HEREBY
AUTHORIZED TO BE APPROPRIATED TO THE NATIONAL SCIENCE FOUNDATION FOR THE
FISCAL YEAR ENDING JUNE 30, 1975, FOR THE FOLLOWING CATEGORIES:
(1) SCIENTIFIC RESEARCH PROJECT SUPPORT, $358,700, 000.
(2) NATIONAL AND SPECIAL RESEARCH PROGRAMS, $91,900,000.
(3) NATIONAL RESEARCH CENTERS, $52,500,000.
(4) SCIENCE INFORMATION ACTIVITIES, $6,300,000.
(5) INTERNATIONAL COOPERATIVE SCIENTIFIC ACTIVITIES,
$8,000,000.
(6) RESEARCH APPLIED TO NATIONAL NEEDS, $148,900,000.
(7) INTERGOVERNMENAL SCIENCE PROGRAM, $2,000,000.
(8) INSTITUTIONAL IMPROVEMENT FOR SCIENCE, $12,000,000.
(9) GRADUATE STUDENT SUPPORT, $15,000,000.
(10) SCIENCE EDUCATION IMPROVEMENT, $70,000,000.
(11) PLANNING AND POLICY STUDIES, $2,700,000.
(12) PROGRAM DEVELOPMENT AND MANAGEMENT, $39,500,000.
SEC. 2. NOTWITHSTANDING ANY OTHER PROVISION OF THIS OR ANY OTHER
ACT--,
(A) TO THE TOTAL AMOUNT AUTHORIZED UNDER SECTION 1, NOT LESS
THAN $10,000,000 SHALL BE AVAILABLE FOR THE PURPOSE OF
"INSTITUTIONAL IMPROVEMENT FOR SCIENCE";
(B) OF THE TOTAL AMOUNT AUTHORIZED UNDER SECTION 1, NOT LESS
THAN $15,000,000 SHALL BE AVAILABLE FOR THE PURPOSE OF "GRADUATE
STUDENT SUPPORT";
(C) OF THE TOTAL AMOUNT AUTHORIZED UNDER SECTION 1, NOT LESS
THAN $70,000,000 SHALL BE AVAILABLE FOR THE PURPOSE OF SCIENCE
EDUCATION IMPROVEMENT";
(D) OF THE TOTAL AMOUNT AUTHORIZED IN CATEGORY (2) OF SECTION
1--,
(1) NOT LESS THAN $1,600,000 SHALL BE AVAILABLE FOR
EXPERIMENTAL R. & D. INCENTIVES", AND
(2) NOT LESS THAN $4,000,000 SHALL BE AVAILABLE FOR "SHIP
CONSTRUCTION/CONVERSION";
(E) OF THE TOTAL AMOUNT AUTHORIZED IN CATEGORY (6) OF SECTION
1--,
(1) NOT LESS THAN $1,000,000 SHALL BE AVAILABLE FOR "FIRE
RESEARCH", AND
(2) NOT LESS THAN $8,000,000 SHALL BE AVAILABLE FOR "EARTHQUAKE
RESEARCH AND ENGINEERING", AND
(F) OF THE TOTAL AMOUNT AUTHORIZED IN CATEGORY (10) OF SECTION
1--,
(1) NOT LESS THAN $1,500,000 SHALL BE AVAILABLE FOR "SCIENCE
FACULTY FELLOWSHIPS FOR COLLEGE TEACHERS",
(2) NOT LESS THAN $3,800,000 SHALL BE AVAILABLE FOR "STUDENT
PROGRAMS" INCLUDING "UNDERGRADUATE STUDENT PROJECTS" AND "STUDENT
ORIGINATED STUDIES", AND
(3) NOT LESS THAN $2,000,000 SHALL BE AVAILABLE FOR "HIGH
SCHOOL STUDENT PROJECTS".
SEC. 3. APPROPRIATIONS MADE PURSUANT TO THIS ACT MAY BE USED, BUT
NOT TO EXCEED $5,000, FOR OFFICIAL CONSULTATION, REPRESENTATION, OR
OTHER EXTRAORDINARY EXPENSES UPON THE APPROVAL OR AUTHORITY OF THE
DIRECTOR OF THE NATIONAL SCIENCE FOUNDATION, AND HIS DETERMINATION SHALL
BE FINAL AND CONCLUSIVE UPON THE ACCOUNTING OFFICERS OF THE GOVERNMENT.
SEC. 4. IN ADDITION TO SUCH SUMS AS ARE AUTHORIZED BY SECTION 1, NOT
TO EXCEED $5,000,000 IS AUTHORIZED TO BE APPROPRIATED FOR THE FISCAL
YEAR ENDING JUNE 30, 1975, FOR EXPENSES OF THE NATIONAL SCIENCE
FOUNDATION INCURRED OUTSIDE THE UNITED STATES TO BE PAID FOR IN FOREIGN
CURRENCIES WHICH THE TREASURY DEPARTMENT DETERMINES TO BE EXCESS TO THE
NORMAL REQUIREMENTS OF THE UNITED STATES.
SEC. 5. APPROPRIATIONS MADE PURSUANT TO SECTIONS 1 AND 4 SHALL
REMAIN AVAILABLE FOR OBLIGATION, FOR EXPENDITURE, OR FOR OBLIGATION AND
EXPENDITURE, FOR SUCH PERIOD OR PERIODS AS MAY BE SPECIFIED IN ACTS
MAKING SUCH APPROPRIATIONS.
SEC. 6. NO FUNDS MAY TRANSFERRED FROM ANY PARTICULAR CATEGORY LISTED
IN SECTION 1 TO ANY OTHER CATEGORY OR CATEGORIES LISTED IN SUCH SECTION
IF THE TOTAL OF THE FUNDS SO TRANSFERRED FROM THAT PARTICULAR CATEGORY
WOULD EXCEED 10 PER CENTUM THEREOF, AND NO FUNDS MAY BE TRANSFERRED TO
ANY PARTICULAR CATEGORY LISTED IN SECTION 1 FROM ANY OTHER CATEGORY OR
CATEGORIES LISTED IN SUCH SECTION IF THE TOTAL OF THE FUNDS SO
TRANSFERRED TO THAT PARTICULAR CATEGORY WOULD EXCEED 10 PER CENTUM
THEREOF, UNLESS--,
(A) A PERIOD OF THIRTY LEGISLATIVE DATY HAS PASSED AFTER THE
DIRECTOR OR HIS DESIGNEE HAS TRANSMITTED TO THE SPEAKER OF THE
HOUSE OF REPRESENTATIVES AND TO THE PRESIDENT OF THE SENATE AND TO
THE COMMITTEE OF SCIENCE AND ASTRONAUTICS OF THE HOUSE OF
REPRESENTATIVES AND TO THE COMMITTEE ON LABOR AND PUBLIC WELFARE
OF THE SENATE A WRITTEN REPORT CONTAINING A FULL AND COMPLETE
STATEMENT CONCERNING THE NATURE OF THE TRANSFER AND THE REASON
THEREFOR, OR
(B) EACH SUCH COMMITTEE BEFORE THE EXPIRATION OF SUCH PERIOD
HAS TRANSMITTED TO THE DIRECTOR WRITTEN NOTICE TO THE EFFECT THAT
SUCH COMMITTEE HAS NO OBJECTION TO THE PROPOSED ACTION.
SEC. 7. NOTWITHSTANDING ANY OTHER PROVISION OF THIS OR ANY OTHER
ACT, THE DIRECTOR OF THE NATIONAL SCIENCE FOUNDATION SHALL KEEP THE
COMMITTEE ON SCIENCE AND ASTRONAUTICS OF THE HOUSE OF REPRESENTATIVES
AND THE COMMITTEE ON LABOR AND PUBLIC WELFARE OF THE SENATE FULL AND
CURRENTLY INFORMED WITH RESPECT TO ALL OF THE ACTIVITIES OF THE NATIONAL
SCIENCE FOUNDATION. "42 USC 1882."
SEC. 8. THIS ACT MAY BE CITED AS THE "NATIONAL SCIENCE FOUNDATION
AUTHORIZATION ACT, 1975".
LEGISLATIVE HISTORY:
HOUSE REPORTS: NO. 93 - 995 (COMM. ON SCIENCE AND ASTRONAUTICS) AND
NO. 93 - 1302 (COMM. OF CONFERENCE).
SENATE REPORT NO. 93 - 848 ACCOMPANYING S. 3344 (COMM. ON LABOR AND
PUBLIC WELFARE).
CONGRESSIONAL RECORD, VOL. 120 (1974):
APR. 25, CONSIDERED AND PASSED HOUSE.
MAY 16, CONSIDERED AND PASSED SENATE, AMENDED, IN LIEU OF S.
3344.
AUG. 19, SENATE AGREED TO CONFERENCE REPORT.
AUG. 22, HOUSE AGREED TO CONFERENCE REPORT.
PUBLIC LAW 93-412, 88 STAT. 1089, DISTRICT OF COLUMBIA CRIMINAL
JUSTICE ACT.
BE IT ENACTED BY THE SENATE AND HOUSE REPRESENTATIVES OF THE UNITED
STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT THIS ACT MAY BE CITED AS
THE "DISTRICT OF COLUMBIA CRIMINAL JUSTICE ACT". D.C. CODE 11 - 2601
NOTE."
SEC. 2. TITLE II OF THE DISTRICT OF COLUMBIA CODE "87 STAT. 473." IS
AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING NEW CHAPTER:
SEC.
"11 - 2601. PLAN FOR FURNISHING REPRESENTATION TO INDIGENTS IN
CRIMINAL CASES.
"11 - 2602. APPOINTMENT OF COUNSEL.
"11 - 2603. DURATION AND SUBSTITUTION OF APPOINTMENTS.
"11 - 2604. PAYMENT FOR REPRESENTATION.
"11 - 2605. SERVICES OTHER THAN COUNSEL.
"11 - 2606. RECEIPT OF OTHER PAYMENTS.
"11 - 2607. PREPARATION OF BUDGET.
"11 - 2608. AUTHORIZATION OF APPROPRIATIONS.
"11 - 2609. AUTHORITY OF COUNCIL.
INDIGENTS IN CRIMINAL CASES
"THE JOINT COMMITTEE ON JUDICIAL ADMINISTRATION SHALL PLACE IN
OPERATION, WITHIN NINETY DAYS AFTER THE EFFECTIVE DATE OF THIS CHAPTER,
IN THE DISTRICT OF COLUMBIA A PLAN FOR FURNISHING REPRESENTATION TO ANY
PERSON IN THE DISTRICT OF COLUMBIA WHO IS FINANCIALLY UNABLE TO OBTAIN
ADEQUATE REPRESENTATION--,
"(1) WHO IS CHARGED WITH A FELONY, OR MISDEMEANOR, OR OTHER
OFFENSE FOR WHICH THE SIXTH AMENDMENT TO THE CONSTITUTION REQUIRES
THE APPOINTMENT OF COUNSEL OR FOR WHOM, IN A CASE WHICH HE FACES
LOSS OF LIBERTY, ANY LAW OF THE DISTRICT OF COLUMBIA REQUIRES THE
APPOINTMENT OF COUNSEL;
"(2) WHO IS UNDER ARREST, WHEN SUCH REPRESENTATION IS REQUIRED
BY LAW;
"(3) WHO IS CHARGED WITH VIOLATING A CONDITION OF PROBATION OR
PAROLE IN CUSTODY AS A MATERIAL WITNESS, OR SEEKING COLLATERAL
RELIEF, AS PROVIDED IN --,
"(A) SECTION 23-110 OF THE DISTRICT OF COLUMBIA CODE (REMEDIES
ON MOTION ATTACKING SENTENCE),
"(B) CHAPTER 7 OF TITLE 23 OF THE DISTRICT OF COLUMBIA CODE
(EXTRADITION AND FUGITIVES FROM JUSTICE),
"(C) CHAPTER 19 OF TITLE 16 OF THE DISTRICT OF COLUMBIA CODE
(HABEAS CORPUS),
"(D) SECTION 928 OF THE ACT OF MARCH 8, 1901 (D.C. CODE, SEC.
24-302) //31 STAT. 1340; 69 STAT. 611.// (COMMITMENT OF MENTALLY
ILL PERSON WHILE SERVING SENTENCE);
"(4) WHO IS SUBJECT TO PROCEEDINGS PURSUANT TO CHAPTER 5 OF
TITLE 21 OF THE DISTRICT OF COLUMBIA CODE "D.C. CODE 21 - 501."
(HOSPITALIZATION OF THE MENTALLY ILL);
"(5) WHO IS A JUVENILE AND ALLEGED TO BE DELIQUENT OR IN NEED
OF SUPERVISION.
REPRESENTATION UNDER THE PLAN SHALL INCLUDE COUNSEL AND INVESTIGATIVE,
EXPERT, AND OTHER SERVICES NECESSARY FOR AN ADEQUATE DEFENSE. THE PLAN
SHALL INCLUDE A PROVISION FOR PRIVATE ATTORNEYS, ATTORNEYS FURNISHED BY
THE PUBLIC DEFENDER SERVICE, AND ATTORNEYS AND QUALIFIED STUDENTS
PARTICIPATING IN CLINICAL PROGRAMS.
"COUNSEL FURNISHING REPRESENTATION UNDER THE PLAN SHALL IN EVERY CASE
BE SELECTED FROM PANELS OF ATTORNEYS DESIGNATED AND APPROVED BY THE
COURTS. IN ALL CASES WHERE A PERSON FACES A LOSS OF LIBERTY AND THE
CONSTITUTION OR ANY OTHER LAW REQUIRES THE APPOINTMENT OF COUNSEL, THE
COURT SHALL ADVISE THE DEFENDANT OR RESPONDENT THAT HE HAS THE RIGHT TO
BE REPRESENTED BY COUNSEL AND THAT COUNSEL WILL BE APPOINTED TO
REPRESENT HIM IF HE IS FINANCIALLY UNABLE TO OBTAIN COUNSEL. UNLESS THE
DEFENDANT OR RESPONDENT WAIVES REPRESNTATION BY COUNSEL, THE COURT, IF
SATISFIED AFTER APPROPRIATE INQUIRY THAT THE DEFENDANT OR RESPONDENT IS
FINANCIALLY UNABLE TO OBTAIN COUNSEL, SHALL APPOINT COUNSEL TO REPRESENT
HIM. SUCH APPOINTMENT MAY BE MADE RETROACTIVE TO INCLUDE ANY
REPRESENTATION FURNISHED PURSUANT TO THE PLAN PRIOR TO APPOINTMENT. THE
COURT SHALL APPOINT SEPARATE COUNSEL FOR DEFENDANTS OR RESPONDENTS
HAVING INTERESTS THAT CANNOT PROPERLY BE REPRESENTED BY THE SAME
COUNSEL, OR WHEN OTHER GOOD CAUSE IS SHOWN. IN ALL CASES COVERED BY
THIS ACT WHERE THE APPOINTMENT OF COUNSEL IS DISCRETIONARY, THE
DEFENDANT OR RESPONDENT SHALL BE ADVISED THAT COUNSEL MAY BE APPOINTED
TO REPRESENT HIM IF HE IS FINANCIALLY UNABLE TO OBTAIN COUNSEL, AND THE
COURT SHALL IN ALL SUCH CASES ADVISE THE DEFENDANT OR RESPONDENT OF THE
MANNER AND PROCEDURES BY WHICH HE MAY REQUEST THE APPOINTMENT OF
COUNSEL.
"A PERSON FOR WHOM COUNSEL IS APPOINTED SHALL BE REPRESENTED AT EVERY
STAGE OF THE PROCEEDINGS FROM HIS INITIAL APPEARANCE BEFORE THE COURT
THROUGH APPEALS, INCLUDING ANCILLARY MATTERS APPROPRIATE TO THE
PROCEEDINGS. IF AT ANY TIME THE APPOINTMENT OF COUNSEL THE COURT FINDS
THAT THE PERSON IS FINANCIALLY ABLE TO OBTAIN COUNSEL OR TO MAKE PARTIAL
PAYMENT FOR THE REPRESENTATION, IT MAY TERMINATE THE APPOINTMENT OF
COUNCEL OR AUTHORIZE PAYMENT AS PROVIDED IN SECTION 2606 OF THIS
CHAPTER, AS THE INTERESTS OF JUSTICE MAY DICTATE. IF AT ANY STAGE OF
THE PROCEEDINGS, INCLUDING AN APPEAL, THE COURT FINDS THAT THE PERSON IS
FINANCIALLY UNABLE TO PAY COUNSEL WHOM HE HAD RETAINED, IT MAY APPOINT
COUNSEL AS PROVIDED IN SECTION 2602, AND AUTHORIZE PAYMENT AS PROVIDED
IN SECTION 2604, AS THE INTERESTS OF JUSTICE MAY DICTATE. THE COURT
MAY, IN THE INTEREST OF JUSTICE, SUBSTITUTE ONE APPOINTED COUNSEL FOR
ANOTHER AT ANY STAGE OF THE PROCEEDINGS.
"(A) ANY ATTORNEY APPOINTED PURSUANT TO THIS CHAPTER SHALL, AT THE
CONCLUSION OF THE REPRESENTATION OR ANY SEGMENT THEREOF, BE COMPENSATED
AT A RATE FIXED BY THE JOINT COMMITTEE ON JUDICIAL ADMINISTRATION, NOT
TO EXCEED THE HOURLY SCALE ESTABLISHED BY THE PROVISIONS OF SECTION
3006A (D) (1) OF TITLE 18, UNITED STATES CODE. SUCH ATTORNEY SHALL BE
REIMBURSED FOR EXPENSES REASONABLY INCURRED.
"(B) FOR REPRESENTATION OF A DEFENDANT BEFORE THE SUPERIOR COURT OR
BEFORE THE DISTRICT OF COLUMBIA COURT OF APPEALS, AS THE CASE MAY BE,
THE COM PENSATION TO BE PAID TO AN ATTORNEY SHALL NOT EXCEED THE MAXIMUM
AMOUNTS ESTABLISHED BY SECTION 3006A (D) (2) OF TITLE 18, UNITED STATES
CODE, IN THE CORRESPONDINGKIND OF CASE OR PROCEEDING.
"(C) CLAIMS FOR COMPENSATION AND REIMBURSEMENT IN EXCESS OF ANY
MAXIMUM AMOUNT PROVIDED IN SUBSECTION (B) OF THIS SECTION MAY BE
APPROVED FOR EXTENDED OR COMPLEX REPRESENTATION WHENEVER SUCH PAYMENT IS
NECESSARY TO PROVIDE FAIR COMPENSATION. ANY SUCH REQUEST FOR PAYMENT
SHALL BE SUBMITTED BY THE ATTORNEY FOR APPROVAL BY THE CHIEF JUDGE OF
THE SUPERIOR COURT UPON RECOMMENDATION OF THE PRESIDING JUDGE IN THE
CASE OR, IN CASES BEFORE THE DISTRICT OF COLUMBIA COURT OF APPEALS,
APPROVAL BY THE JUDGE OF THE COURT OF APPEALS UPON RECOMMENDATION OF THE
PRESIDING JUDGE IN THE CASE. A DECISION SHALL BE MADE BY THE
APPROPRIATE CHIEF JUDGE IN THE CASE OF EVERY CLAIM FILED UNDER THIS
SUBSECTION.
"(D) A SEPARATE CLAIM FOR COMPENSATION AND REIMBURSEMENT SHALL BE
MADE TO THE SUPERIOR COURT FOR REPRESENTATION BEFORE THAT COURT, AND TO
THE DISTRICT OF COLUMBIA COURT OF APPEALS FOR REPRESENTATION BEFORE THAT
COURT. EACH CLAIM SHALL BE SUPPORTED BY A SWORN WRITTEN STATEMENT
SPECIFYING THE TIME EXPENDED, SERVICES RENDERED, AND EXPENSES INCURRED
WHILE THE CASE WAS PENDING BEFORE THE COURT, AND THE COMPENSATION AND
REIMBURSEMENT APPLIED FOR OR RECEIVED IN THE SAME CASE FORM ANY OTHER
SOURCE. THE COURT SHALL FIX THE COMPENSATION AND REIMBURSEMENT TO BE
PAID TO THE ATTORNEY. IN CASES WHERE REPRESENTATION IS FURNISHED OTHER
THAN BEFORE THE SUPERIOR COURT OR THE DISTRICT OF COLUMBIA COURT OF
APPEALS, CLAIMS SHALL BE SUBMITTED TO THE SUPERIOR COURT WHICH SHALL FIX
THE COMPENSATION AND REIMBURSEMENT TO BE PAID.
"(E) FOR PURPOSES OF COMPENSATION AND OTHER PAYMENTS AUTHORIZED BY
THIS SECTION, AN ORDER BY A COURT GRANTING A NEW TRIAL SHALL BE DEEMED
TO INITIATE A NEW CASE.
"(F) IF A PERSON FOR WHOM COUNSEL IS APPOINTED UNDER THIS SECTION
APPEALS TO THE DISTRICT OF COLUMBIA COURT OF APPEALS, HE MAY DO SO
WITHOUT PREPAYMENT OF FEES AND COSTS OR SECURITY THEREFOR AND WITHOUT
FILING THE AFFIDAVIT REQUIRED BY SECTION 1915 (A) OF TITLE 28, UNITED
STATES CODE.
"(A) COUNSEL FOR A PERSON WHO IS FINANCIALLY UNABLE TO OBTAIN
INVESTIGATIVE, EXPERT, OR OTHER SERVICES NECESSARY FOR AN ADEQUATE
DEFENSE MAY REQUEST THEM IN AN EX PARTE APPLICATION. UPON FINDING,
AFTER APPROPRIATE INQUIRY IN EX PARTE PROCEEDING, THAT THE SERVICES ARE
NECESSARY AND THAT THE PERSON IS FINANCIALLY UNABLE TO OBTAIN THEM, THE
COURT SHALL AUTHORIZE COUNSEL TO OBTAIN THE SERVICES.
"(B) COUNSEL APPOINTED UNDER THIS SECTION MAY OBTAIN, SUBJECT TO
LATER REVIEW, INVESTIGATIVE, EXPERT, OR OTHER SERVICES, EXCLUDING THE
PREPARATION OF REPORTER'S TRANSCRIPT, WITHOUT PRIOR AUTHORIZATION IF
NECESSARY FOR AN ADEQUATE DEFENSE. THE TOTAL COST OF SERVICES OBTAINED
WITHOUT PRIOR AUTHORIZATION MAY NOT EXCEED $150 OR THE RATE PROVIDED BY
SECTION 3006A(E) (2) OF TITLE 18, UNITED STATES CODE, WHICHEVER IS
HIGHER, AND EXPENSES REASONABLY INCURRED.
"(C) COMPENSATION TO BE PAID TO A PERSON FOR SERVICES RENDERED BY HIM
TO A PERSON UNDER THIS SUBSECTION SHALL NOT EXCEED $300, OR THE RATE
PROVIDED BY SECTION 3006A(E) (3) OF TITLE 18, UNITED STATES CODE,
WHICHEVER IS HIGHER, EXCLUSIVE OF REIMBURSEMENT FOR EXPENSES REASONABLY
INCURRED, UNLESS PAYMENT IN EXCESS OF THAT LIMITED IS CERTIFIED BY THE
COURT, AS NECESSARY TO PROVIDE FAIR COMPENSATION FOR SERVICES OF AN
UNUSUAL CHARACTER OR DURATION, AND THE AMOUNT OF THE EXCESS PAYMENT IS
APPROVED BY THE PRESIDING JUDGE IN THE CASE.
"(A) WHENEVER THE COURT FINDS THAT FUNDS ARE AVAILABLE FOR PAYMENT
FROM OR ON BEHALF OF A PERSON FURNISHED REPRESENTATION, IT MAY AUTHORIZE
OR DIRECT THAT SUCH FUNDS BE PAID TO THE APPOINTED ATTORNEY, OR TO ANY
PERSON OR ORGANIZATION AUTHORIZED PURSUANT TO SECTION 2605 OF THIS TITLE
TO RENDER INVESTIGATIVE, EXPERT, OR OTHER SERVICES, OR TO THE COURT FOR
DEPOSIT IN THE TREASURY AS A REIMBURSEMENT TO THE APPROPRIATION, CURRENT
AT THE TIME OF PAYMENT, TO CARRY OUT THE PROVISIONS OF THIS SECTION.
EXCEPT AS SO AUTHORIZED OR DIRECTED, NO SUCH PERSON OR ORGANIZATION MAY
REQUEST OR ACCEPT ANY PAYMENT OR PROMISE OF PAYMENT FOR REPRESENTING A
DEFENDANT.
"(B) ANY PERSON COMPENSATED, OR ENTITLED TO BE COMPENSATED, FOR ANY
SERVICES RENDERED UNDER THIS CHAPTER WHO SHALL SEEK, ASK, DEMAND,
RECEIVE, OR OFFER TO RECEIVE, ANY MONEY, GOODS, OR SERVICES IN RETURN
THEREFOR FROM OR ON BEHALF OF A DEFENDANT OR RESPONDENT SHALL BE FINED
NOT MORE THAN $1,000 OR IMPRISONED NOT MORE THAN ONE YEAR, OR BOTH.
"THE JOINT COMMITTEE SHALL PREPARE AND ANNUALLY SUBMIT TO THE
COMMISSIONER OF THE DISTRICT OF COLUMBIA, IN CONFORMITY WITH SECTION
1743 OF THIS TITLE, OR TO HIS SUCCESSOR IN ACCORDANCE WITH SECTION 445
OF THE DISTRICT OF COLUMBIA SELF-GOVERNMENT AND GOVERNMENTAL
REORGANIZATION ACT, "87 STAT. 800, D.C. CODE 1 - 101 NOTE." FOR
INCLUSION IN THE ANNUAL BUDGET, ANNUAL ESTIMATES OF THE EXPENDITURES AND
APPROPRIATIONS NECESSARY FOR FURNISHING REPRESENTATION BY PRIVATE
ATTORNEYS TO PERSONS ENTITLED TO REPRESENTATION IN ACCORDANCE WITH
SECTION 2601 OF THIS TITLE.
"THERE ARE HEREBY AUTHORIZED TO BE APPROPRIATED, OUT OF ANY MONEYS IN
THE TREASURY CREDTED TO THE DISTRICT OF COLUMBIA, SUCH FUNDS AS MAY BE
NECESSARY FOR THE ADMINISTRATION OF THIS CHAPTER FOR FISCAL YEARS 1975
AND 1976. WHEN SO SPECIFIED IN APPROPRIATION ACTS, SUCH APPROPRIATIONS
SHALL REMAIN AVAILABLE UNTIL EXPENDED.
"SECTION 602(A) (4) OF THE DISTRICT OF COLUMBIA SELF-GOVERNMENT AND
GOVERNMENTAL REORGANIZATION ACT "87 STAT. 813, D.C. CODE 1 - 101 NOTE."
SHALL NOT APPLY TO THIS CHAPTER.".
SEC. 3. (A) PARAGRAPH (1) OF SECTION 3006A, TITLE 18, UNITED STATES
CODE, AMENDED, IS AMENDED TO READ:
"(1) APLICABILITY IN THE DISTRICT OF COLUMBIA.-- THE PROVISIONS OF
THIS ACT, OTHER THAN SUBSECTION (H) OF SECTION 1, SHALL APPLY IN THE
UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA AND THE UNITED
STATES COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA CIRCUIT. THE
PROVISIONS OF THIS ACT SHALL NOT APPLY TO THE SUPERIOR COURT OF THE
DISTRICT OF COLUMBIA AND THE DISTRICT OF COLUMBIA COURT OF APPEALS.".
SEC. 4. THIS ACT SHALL TAKE EFFECT UPON THE DATE OF ITS ENACTMENT.
ANY PERSON APPOINTED ON OR AFTER JULY 1, 1974, BUT PRIOR TO THE
COMMENCING DATE OF THE PLAN REFERRED TO IN SECTION 11 - 2601 OF THE
DISTRICT OF COLUMBIA CODE "D.C. CODE 11 - 2601 NOTE." (AS ADDED BY
SECTION 2 OF THIS ACT), BY A JUDGE OF THE SUPERIOR COURT OR THE DISTRICT
OF COLUMBIA COURT OF APPEALS TO FURNISH TO ANY PERSON IN THE DISTRICT OF
COLUMBIA, WHO FINANCIALLY UNABLE TO OBTAIN ADEQUATE REPRESENTATION, THAT
REPRESENTATION AND THOSE SERVICES REFERRED TO IN SUCH SECTION 11 - 2601,
MAY BE COMPENSATED AND REIMBURSED FOR SUCH REPRESENTATION AND SERVICES
RENDERED, INCLUDING EXPENSES INCURRED THEREWITH, UPON FILING A CLAIM FOR
PAYMENT. PAYMENT SHALL NOT ALLOWED IN EXCESS OF THE AMOUNTS AUTHORIZED
IN ACCORDANCE WITH THOSE SECTIONS ADDED TO THE DISTRICT OF COLUMBIA CODE
BY SUCH SECTION 2.
LEGISLATIVE HISTORY:
HOUSE REPORTS: NO. 93 - 1172 (COMM. ON THE DISTRICT OF COLUMBIA) AND
NO. 93 - 1295 (COMM. OF CONFERENCE).
SENATE REPORT: NO. 93 - 966 (COMM. ON THE DISTRICT OF COLUMBIA).
CONGRESSIONAL RECORD, VOL. 120 (1974):
JUNE 27, CONSIDERED AND PASSED SENATE.
JULY 9, CONSIDERED AND PASSED HOUSE, AMENDED.
AUG. 20, HOUSE AGREED TO CONFERENCE REPORT.
AUG. 21, SENATE AGREED TO CONFERENCE REPORT.
PUBLIC LAW 93-411, 88 STAT. 1089.
BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE
UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED. THAT THE AGRICULTURAL
ADJUSTMENT ACT OF 1938 "52 STAT. 31; 85 STAT. 23." IS AMENDED BY
INSERTING AFTER SECTION 319 "7 USC 1314 E." THE FOLLOWING NEW SECTION:
"SEC. 320. "7 USC 1314 F." NOTWITHSTANDING ANY OTHER PROVISION OF
LAW, BEGINNING WITH THE 1975 CROP, ANY KIND OF TOBACCO FOR WHICH
MARKETING QUOTAS ARE NOT IN EFFECT THAT IS PRODUCED IN AN AREA WHERE
PRODUCERS WHO ARE ENGAGED IN THE PRODUCTION OF A KIND OF TOBACCO
TRADITIONALLY PRODUCED IN THE AREA HAVE APPROVED MARKETING QUOTAS UNDER
THIS ACT SHALL BE SUBJECT TO THE QUOTA FOR THE KIND OF TOBACCO
TRADITIONALLY PRODUCED IN THE AREA: PROVIDED, HOWEVER, THAT THIS
SECTION SHALL NOT APPLY IN ANY CASE IN WHICH THE SECRETARY OR HIS
DESIGNEE FINDS ANY SUCH NONQUOTA TOBACCO IS READILY AND DISTINGUISHABLY
DIFFERENT FROM ANY KIND OF TOBACCO PRODUCED UNDER QUOTA, BECAUSE OF SEED
VARIETY, CULTURAL PRACTICES, METHOD OF CURING AND OTHER FACTORS
AFFECTING ITS PHYSICAL CHARATERISTICS, AS DETERMINED THROUGH THE
APPLICATION OF THE FEDERAL STANDARDS OF INSPECTION AND IDENTIFICATION OF
QUOTA TYPES AND THE TOBACCO DOES NOT POSSESS ANY OF THE DISTINGUISHABLE
CHARACTERISTICS OF A QUOTA TYPE. IF MARKETING QUOTAS ARE IN EFFECT FOR
MORE THAN ONE KIND OF TOBACCO IN AN AREA, ANY NONQUOTA TOBACCO PRODUCED
IN THE AREA SHALL BE SUBJECT TO QUOTAS FOR THE KIND OF TOBACCO
TRADITIONALLY PRODUCED IN THE AREA HAVING THE HIGHEST PRICE SUPPORT
UNDER THE AGRICULTURAL ACT OF 1949." "63 STAT. 1051, 7 USC 1421 NOTE."
LEGISLATIVE HISTORY:
HOUSE REPORT NO. 93 - 1131 (COMM. ON AGRICULTURE).
SENATE REPORT NO 93 - 1106 (COMM. ON AGRICULTURE AND FORESTRY).
CONGRESSIONAL RECORD, VOL. 120 (1974):
JULY 22, CONSIDERED AND PASSED HOUSE.
AUG. 21, CONSIDERED AND PASSED SENATE.
PUBLIC LAW 93-410, 88 STAT 1079, GEOTHERMAL ENERGY RESEARCH,
DEVELOPMENT, AND DEMONSTRATION ACT OF 1974.
BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE
UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED,
SHORT TITLE "30 USC 1101 NOTE."
SECTION 1. THIS ACT MAY BE CITED AS THE "GEOTHERMAL ENERGY RESEARCH,
DEVELOPMENT, AND DEMONSTRATION ACT OF 1974".
FINDINGS "30 USC 1101."
SEC. 2. THE CONGRESS HEREBY FINDS THAT--,
(1) THE NATION IS CURRENTLY SUFFERING A CRITICAL SHORTAGE OF
ENVIRONMENTALLY ACCEPTABLE FORMS OF ENERGY;
(2) THE ENADEQUATE ORGANIZATIONAL STRUCTURES AND LEVELS OF
FUNDING FOR ENERGY RESEARCH HAVE LIMITED THE NATION'S CURRENT AND
FUTURE OPTIONS FOR MEETING ENERGY NEEDS;
(3) ELECTRIC ENERGY IS A CLEAN AND CONVENIENT FORM OF ENERGY AT
THE LOCATION OF ITS USE AND IS THE ONLY PRACTICABLE FORM OF ENERGY
IN SOME MODERN APPLICATIONS, BUT THE DEMAND FOR ELECTRIC ENERGY IN
EVERY REGION OF THE UNITED STATES IS TAXING ALL OF THE ALTERNATIVE
ENERGY SOURCES PRESENTLY AVAILABLE AND IS PROJECTED TO INCREASE;
SOME OF THE SOURCES AVAILABLE FOR ELECTRIC POWER GENERATION ARE
ALREADY IN SHORT SUPPLY, AND THE DEVELOPMENT AND USE OF OTHER
SOURCES PRESENTLY INVOLVE UNDESIRABLE ENVIRONMENTAL IMPACTS;
(4) THE NATION'S CRITICAL ENERGY PROBLEMS CAN BE SOLVED ONLY IF
A NATIONAL COMMITMENT IS MADE TO DEDICATE THE NECESSARY FINANCIAL
RESOURCES, AND ENLIST THE COOPERATION OF THE PRIVATE AND PUBLIC
SECTORS, IN DEVELOPING GEOTHERMAL RESOURCES AND OTHER
NONCONVENTIONAL SOURCES OF ENERGY;
(5) THE CONVENTIONAL GEOTHERMAL RESOURCES WHICH ARE PRESENTLY
BEING USED HAVE LIMITED TOTAL POTENTIAL; BUT GEOTHERMAL RESOURCES
WHICH ARE DIFFERENT FROM THOSE PRESENTLY BEING USED, AND WHICH
HAVE EXTREMELY LARGE ENERGY CONTENT, ARE KNOWN TO EXIST;
(6) SOME GEOTHERMAL RESOURCES CONTAIN ENERGY IN FORMS OTHER
THAN HEAT; EXAMP LES ARE METHANE AND EXTREMELY HIGH PRESSURES
AVAILABLE UPON RELEASE AS KINETIC ENERGY;
(7) SOME GEOTHERMAL RESOURCES CONTAIN VALUABLE BYPRODUCTS SUCH
AS POTABLE WATER AND MINERAL COMPOUNDS WHICH SHOULD BE PROCESSED
AND RECOVERED AS NATIONAL RESOURCES;
(8) TECHNOLOGIES ARE NOT PRESENTLY AVAILABLE FOR THE
DEVELOPMENT OF MOST OF THESE GEOTHERMAL RESOURCES, BUT
TECHNOLOGIES FOR THE GENERATION OF ELECTRIC ENERGY FROM GEOTHERMAL
RESOURCES ARE POTENTIALLY ECONOMICAL AND ENVIRONMENTALLY
DESIRABLE, AND THE DEVELOPMENT OF GEOTHERMAL RESOURCES OFFERS
POSSIBILITIES OF PROCESS ENERGY AND OTHER NONELECTRIC
APPLICATIONS;
(9) MUCH OF THE KNOWN GEOTHERMAL RESOURCES EXIST ON THE PUBLIC
LANDS;
(10) FEDERAL FINANCIAL ASSISTANCE IS NECESSARY TO ENCOURAGE THE
EXTENSIVE EXPLORATION, RESEARCH, AND DEVELOPMENT IN GEOTHERMAL
RESOURCES WHICH WILL BRING THESE TECHNOLOGIES TO THE POINT OF
COMMERCIAL APPLICATION;
(11) THE ADVANCEMENT OF TECHNOLOGY WITH THE COOPERATION OF
PRIVATE INDUSTRY FOR THE PRODUCTION OF USEFUL FORMS OF ENERGY FROM
GEOTHERMAL RESOURCES IS IMPORTANT WITH RESPECT TO THE FEDERAL
RESPONSIBILITY FOR THE GENERAL WELFARE, TO FACILITATE COMMERCE, TO
ENCOURAGE PRODUCTIVE HARMONY BETWEEN MAN AND HIS ENVIRONMENT, AND
TO PROTECT THE PUBLIC INTEREST; AND
(12) THE FEDERAL GOVERNMENT SHOULD ENCOURAGE AND ASSIST PRIVATE
INDUSTRY THROUGH FEDERAL ASSISTANCE FOR THE DEVELOPMENT AND
DEMONSTRATION OF PRACTICABLE MEANS TO PRODUCE USEFUL ENERGY FROM
GEOTHERMAL RESOURCES WITH ENVIRONMENTALLY ACCEPTABLE PROCESSES.
DEFINITIONS "30 USC 1102."
SEC. 3. FOR THE PURPOSES OF THIS ACT--,
(1) THE TERM "GEOTHERMAL RESOURCES" MEANS (A) ALL PRODUCTS OF
GEOTHERMAL PROCESSES, EMBRACING INDIGENOUS STEAM, HOT WATER, AND
BRINES, (B) STEAM AND OTHER GASES, HOT WATER AND HOT BRINES,
RESULTING FROM WATER, GAS, OR OTHER FLUIDS ARTIFICIALLY INTRODUCED
INTO GEOTHERMAL FORMATIONS, AND (C) ANY BYPRODUCT DERIVED FROM
THEM;
(2) THE TERM "BYPRODUCT" MEANS ANY MINERAL OR MINERALS WHICH
ARE FOUND IN SOLUTION OR IN ASSOCIATION WITH GEOTHERMAL RESOURCES
AND WHICH HAVE A VALUE OF LESS THAN 75 PERCENT OF THE VALUE OF THE
GEOTHERMAL STEAM AND ASSOCIATED GEOTHERMAL RESOURCES OR ARE NOT,
BECAUSE OF QUANTITY, QUALITY, OR TECHNICAL DIFFICULTIES IN
EXTRACTION AND PRODUCTION, OF SUFFICIENT VALUE TO WARRANT
EXTRACTION AND PRODUCTION BY THEMSELVES;
(3) "PILOT PLANT" MEANS AN EXPERIMENTAL UNIT OF SMALL SIZE USED
FOR EARLY EVALUATION AND DEVELOPMENT OF NEW OR IMPROVED PROCESSES
AND TO OBTAIN TECHNICAL, ENGINEERING, AND COST DATA;
(4) "DEMONSTRATION PLANT" MEANS A COMPLETE FACILITY WHICH
PRODUCES ELECTRICITY, HEAT ENERGY, OR USEFUL BYPRODUCTS FOR
COMMERCIAL DISPOSAL FROM GEOTHERMAL RESOURCES AND WHICH WILL MAKE
A SIGNIFICANT CONTRIBUTION TO THE KNOWLEDGE OF FULL-SIZE
TECHNOLOGY, PLANT OPERATION, AND PROCESS ECONOMICS;
(5) THE TERM "PROJECT" MEANS THE GEOTHERMAL ENERGY COORDINATION
AND MANAGEMENT PROJECT ESTABLISHED BY SECTION 101 (A);
(6) THE TERM "FUND" MEANS THE GEOTHERMAL RESOURCES DEVELOPMENT
FUND ESTABLISHED BY SECTION 204(A); AND
(7) THE TERM "CHAIRMAN" MEANS THE CHAIRMAN OF THE PROJECT.
ESTABLISHMENT "30 USC 1121."
SEC. 101. (A) THERE IS HEREBY ESTABLISHED THE GEOTHERMAL ENERGY
COORDINATION AND MANAGEMENT PROJECT.
(B) (1) THE PROJECT SHALL BE COMPOSED OF SIX MEMBERS AS FOLLOWS:
(A) ONE APPOINTED BY THE PRESIDENT;
(B) AN ASSISTANT DIRECTOR OF THE NATIONAL SCIENCE
FOUNDATION;
(C) AN ASSISTANT SECRETARY OF THE DEPARTMENT OF THE
INTERIOR;
(D) AN ASSOCIATE ADMINISTRATOR OF THE NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION;
(E) THE GENERAL MANAGER OF THE ATOMIC ENERGY COMMISSION; AND
(F) AN ASSISTANT ADMINISTRATOR OF THE FEDERAL ENERGY
ADMINISTRATION.
(2) THE PRESIDENT SHALL DESIGNATE ONE MEMBER OF THE PROJECT TO SERVE
AS CHAIRMAN OF THE PROJECT.
(3) IF THE INDIVIDUAL APPOINTED UNDER PARAGRAPH (1) (A) IS AN OFFICER
OR EMPLOYEE OF THE FEDERAL GOVERNMENT, HE SHALL RECEIVE NO ADDITIONAL
PAY ON ACCOUNT OF HIS SERVICE AS A MEMBER OF THE PROJECT. IF SUCH
INDIVIDUAL IS NOT AN OFFICER OR EMPLOYEE OF THE FEDERAL GOVERNMENT, HE
SHALL BE ENTITLED TO RECEIVE THE DAILY EQUIVALENT OF THE ANNUAL RATE OF
BASIC PAY IN EFFECT FOR LEVEL IV OF THE EXECUTIVE SCHEDULE (5 U.S.C.
5315) "80 STAT. 461; 83 STAT. 863." FOR EACH DAY (INCLUDING TRAVELTIME)
DURING WHICH HE IS ENGAGED IN THE ACTUAL PERFORMANCE OF DUTIES VESTED IN
THE PROJECT.
(C) THE PROJECT SHALL HAVE OVERALL RESPONSIBILITY FOR THE PROVISIO OF
EFFECTIVE MANAGEMENT AND COORDINATION WITH RESPECT TO A NATIONAL
GEOTHERMAL ENERGY RESEARCH, DEVELOPMENT, AND DEMONSTRATION PROGRAM.
SUCH PROGRAM SHALL INCLUDE--,
(1) THE DETERMINATION AND EVALUATION OF THE RESOURCE BASE;
(2) RESEARCH AND DEVELOPMENT WITH RESPECT TO EXPLORATION,
EXTRACTION, AND UTILIZATION TECHNOLOGIES;
(3) THE DEMONSTRATION OF APPROPRIATE TECHNOLOGIES; AND
(4) THE LOAN GUARANTY PROGRAM UNDER TITLE II.
(D) (1) THE PROJECT SHALL CARRY OUT ITS RESPONSIBILITIES UNDER THIS
SECTION ACTING THROUGH THE FOLLOWING FEDERAL AGENCIES:
(A) THE DEPARTMENT OF THE INTERIOR, THE RESPONSIBILITIES OF
WHICH SHALL INCLUDE EVALUATION AND ASSESSMENT OF THE RESOURCE
BASE, INCLUDING DEVELOPMENT OF EXPLORATION TECHNOLOGIES;
(B) THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION, THE
RESPONSIBILITIES OF WHICH SHALL INCLUDE THE PROVISION OF CONTRACT
MANAGEMENT CAPABILITY, EVALUATION AND ASSESSMENT OF THE RESOURCE
BASE, AND THE DEVELOPMENT OF TECHNOLOGIES PURSUANT TO SECTION
102(B);
(C) THE ATOMIC ENERGY COMMISSION, THE RESPONSIBILITIES OF WHICH
SHALL INCLUDE THE DEVELOPMENT OF TECHNOLOGIES; AND
(D) THE NATIONAL SCIENCE FOUNDATION, THE RESPONSIBILITIES OF
WHICH SHALL INCLUDE BASIC AND APPLIED RESEARCH.
(2) UPON REQUEST OF THE PROJECT, THE HEAD OF ANY SUCH ENERGY IS
AUTHORIZED TO DETAIL OR ASSIGN, ON A REIMBURSABLE BASIS OR OTHERWISE,
ANY OF THE PERSONNEL OF SUCH AGENCY TO THE PROJECT TO ASSIST IT IN
CARRYING OUT ITS RESPONSIBILITIES UNDER THIS ACT.
(E) THE PROJECT SHALL HAVE EXCLUSIVE AUTHORITY WITH RESPECT TO THE
ESTABLISHMENT OR APPROVAL OF PROGRAMS OR PROJECTS INITIATED UNDER THIS
ACT, EXCEPT THAT THE AGENCY INVOLVED IN ANY PARTICULAR PROGRAM OR
PROJECT SHALL BE RESPONSIBLE FOR THE OPERATION AND ADMINISTRATION OF
SUCH PROGRAM OR PROJECT.
PROGRAM DEFINITION "30 USC 1122."
SEC. 102. (A) (1) THE CHAIRMAN, ACTING THROUGH THE ADMINISTRATOR OF
THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION, IS AUTHORIZED AND
DIRECTED TO PREPARE A COMPREHENSIVE PROGRAM DEFINITION OF AN INTERGRATED
EFFORT AND COMMITMENT FOR EFFECTIVELY DEVELOPING GEOTHERMAL ENERGY
RESOURCES. SUCH ADMINISTRATOR, IN PREPARING SUCH COMPREHENSIVE PROGRAM
DEFINITION, IS AUTHORIZED TO CONSULT WITH OTHER FEDERAL AGENCIES AND
NON-FEDERAL ENTITIES.
(2) THE CHAIRMAN SHALL TRANSMIT SUCH COMPREHENSIVE PROGRAM DEFINITION
TO THE PRESIDENT AND TO EACH HOUSE OF THE CONGRESS. INTERIM REPORTS
SHALL BE TRANSMITTED NOT LATER THAN NOVEMBER 30, 1974, AND NOT LATER
THAN JANUARY 31, 1975. SUCH COMPREHENSIVE PROGRAM DEFINITION SHALL BE
TRANSMITTED AS SOON AS POSSIBLE THEREAFTER, BUT IN ANY CASE NOT LATER
THAN AUGUST 31, 1975.
(3) AS PART OF THE COMPREHENSIVE PROGRAM DEFINITION REQUIRED BY
PARAGRAPH (1), THE CHAIRMAN, ACTING THROUGH THE GEOLOGICAL SURVEY, SHALL
TRANSMIT TO THE PRESIDENT AND TO EACH HOUSE OF THE CONGRESS A SCHEDULE
AND OBJECTIVES FOR THE INVENTORYING OF GEOTHERMAL RESOURCES.
(B) THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION IS AUTHORIZED
TO UNDERTAKE AND CARRY OUT THOSE PROGRAMS ASSIGNED TO IT BY THE PROJECT.
RESOURCE INVENTORY AND ASSESSMENT PROGRAM "30 USC 1123."
SEC. 103. (A) THE CHAIRMAN SHALL INITIATE A RESOURCE INVENTORY AND
ASSESSMENT PROGRAM WITH THE OBJECTIVE OFMAKING REGIONAL AND NATIONAL
APPRAISALS OF ALL TYPES OF GEOTHERMAL RESOURCES, INCLUDING
IDENTIFICATION OF PROMISING TARGET AREAS FOR INDUSTRIAL EXPLORATION AND
DEVELOPMENT. THE SPECIFIC GOALS SHALL INCLUDE--,
(1) THE IMPROVEMENT OF GEOPHYSICAL, GEOCHEMICAL, GEOLOGICAL,
AND HYDROLOGICAL TECHNIQUES NECESSARY FO LOCATING AND EVALUATING
GEOTHERMAL RESOURCES;
(2) THE DEVELOPMENT OF BETTER METHODS FOR PREDICTING THE POWER
POTENTIAL AND LONGEVITY OF GEOTHERMAL RESERVOIRS;
(3) THE DETERMINATION AND ASSESSMENT OF THE NATURE AND POWER
POTENTIAL OF THE DEEPER ENEXPLORED PARTS OF HIGH TEMPERATURE
GEOTHERMAL CONVECTION SYSTEMS; AND
(4) THE SURVEY AND ASSESSMENT OF REGIONAL AND NATIONAL
GEOTHERMAL RESOURCES OF ALL TYPES.
(B) THE CHAIRMAN, ACTING THROUGH THE GEOLOGICAL SURVEY AND OTHER
APPROPRIATE AGENCIES, SHALL--,
(1) DEVELOP AND CARRY OUT A GENERAL PLAN FOR THE ORDERLY
INVENTORYING OF ALL FORMS OF GEOTHERMAL RESOURCES OF THE FEDERAL
LANDS AND, WHERE CONSISTENT WITH PROPERTY RIGHTS AND DETERMINED BY
THE CHAIRMAN TO BE IN THE NATIONAL INTEREST, OF NON-FEDERAL LANDS;
(2) CONDUCT REGIONAL SURVEYS, BASED UPON SUCH A GENERAL PLAN,
USING INNOVATIVE GEOLOGICAL, GEOPHYSICAL, GEOCHEMICAL, AND
STATAGRAPHIC DRILLING TECHNIQUES, WHICH WILL LEAD TO A NATIONAL
INVENTORY OF GEOTHERMAL RESOURCES IN THE UNITED STATES;
(3) PUBLISH AND MAKE AVAILABLE MAPS, REPORTS, AND OTHER
DOCUMENTS DEVELOPED FROM SUCH SURVEYS TO ENCOURAGE AND FACILITATE
THE COMMERCIAL DEVELOPMENT OF GEOTHERMAL RESOURCES FOR BENEFICIAL
USE AND CONSISTENT WITH THE NATIONAL INTEREST;
(4) MAKE SUCH RECOMMENDATIONS FOR LEGISLATION AS MAY FROM TIME
TO TIME APPEAR TO BE NECESSARY TO MAKE FEDERAL LEASING POLICY FOR
GEOTHERMAL RESOURCES CONSISTENT WITH KNOWN INVENTORIES OF VARIOUS
RESOURCE TYPES, WITH THE CURRENT STATE OF TECHNOLIGIES FOR
GEOTHERMAL ENERGY DEVELOPMENT, AND WITH CURRENT EVALUATIONS OF THE
ENVIRONMENTAL IMPACTS OF SUCH DEVELOPMENT; AND
(5) PARTICIPATE WITH APPROPRIATE FEDERAL AGENCIES AND
NON-FEDERAL ENTITIES IN RESEARCH TO DEVELOP, IMPROVE, AND TEST
TECHNOLOGIES FOR THE DESCOVERY AND EVALUATION OF ALL FORMS OF
GEOTHERMAL RESOURCES, AND CONDUCT RESEARCH INTO THE PRINCIPLES
CONTROLLING THE LOCATION, OCCURRENCE, SIZE, TEMPERATURE, ENERGY
CONTENT, PRODUCIBILITY, AND ECONOMIC LIFETIMES OF GEOTHERMAL
RESERVOIRS.
RESEARCH AND DEVELOPMENT "30 USC 1124."
SEC. 104. (A) THE CHAIRMAN, ACTING THROUGH THE APPROPRIATE FEDERAL
AGENCIES AND IN COOPERATION WITH NON-FEDERAL ENTITIES, SHALL INITIATE A
RESEARCH AND DEVELOPMENT PROGRAM FOR THE PURPOSE OF RESOLVING ALL MAJOR
TECHNICAL PROBLEMS INHIBITING THE FULLEST POSSIBLE COMMERCIAL
UTILIZATION OF GEOTHERMAL RESOURCES IN THE UNITED STATES. THE SPECIFIC
GOALS OF SUCH PROGRAMS SHALL INCLUDE--,
(1) THE DEVELOPMENT OF EFFECTIVE AND EFFICIENT DRILLING METHODS
TO OPERATE AT HIGH TEMPERATURES IN FORMATIONS OF GEOTHERMAL
INTEREST;
(2) THE DEVELOPMENT OF RELIABLEPREDICTIVE METHODS AND CONTROL
TECHNIQUES FOR THE PRODUCTION OF GEOTHERMAL RESOURCES FROM
RESERVOIRS;
(3) THE EXPLOITATION OF NEW CONCEPTS FOR FRACTURING ROCK TO
PERMIT RECOVERY OF CONTAINED HEAT RESERVES;
(4) THE IMPROVEMENT OF EQUIPMENT AND TECHNOLOGY FOR THE
EXTRACTION OF GEOTHERMAL RESOURCES FROM RESERVOIRS;
(5) THE DEVELOPMENT OF IMPROVED METHODS FOR CONVERTING
GEOTHERMAL RESOURCES AND BYPRODUCTS TO USEFUL FORMS;
(6) THE DEVELOPMENT OF IMPROVED METHODS FOR CONTROLLING
EMISSIONS AND WASTES FROM GEOTHERMAL UTILIAZTION FACILITIES,
INCLUDING NEW MONITORING METHODS TO ANY EXTENT NECESSARY;
(7) THE DEVELOPMENT AND EVALUATION OF WASTE DISPOSAL CONTROL
TECHNOLOGIES AND THE EVALUATION OF SURFACE AND SUBSURFACE
ENVIRONMENTAL EFFECTS OF GEOTHERMAL DEVELOPMENT;
(8) THE IMPROVEMENTS OF THE TECHNICAL CAPABILITY TO PREDICT
ENVIRONMENTAL IMPACTS RESULTING FROM THE DEVELOPMENT OF GEOTHERMAL
RESOURCES, THE PREPARATION OF ENVIRONMENTAL IMPACT STATEMENTS, AND
THE ASSURING THE COMPLIANCE WITH APPLICABLE STANDARDS AND
CRITERIA;
(9) THE IDENTIFICATION OF SOCIAL, LEGAL, AND ECONOMIC PROBLEMS
ASSOCIATED WITH GEOTHERMAL DEVELOPMENT (BOTH LOCALLY AND
REGIONALLY) FOR THE PURPOSE OF DEVELOPING POLICY AND PROVIDING A
FRAMEWORK OF POLICY ALTERNATIVES FOR THE COMMERCIAL UTILIZATION OF
GEOTHERMAL RESOURCES;
(10) THE PROVISION FOR AN ADEQUATE SUPPLY OF SCIENTISTS TO
PERFORM REQUIRED GEOTHERMAL RESEARCH AND DEVELOPMENT ACTIVITIES;
AND
(11) THE ESTABLISHMENT OF A PROGRAM TO ENCOURAGE STATES TO
ESTABLISH AND MAINTAIN GEOTHERMAL RESOURCES CLEARINHOUSES, WHICH
SHALL SERVE TO (A) PROVIDE GEOTHERMAL RESOURCES DEVELOPERS WITH
INFORMATION WITH RESPECT TO APPLICABLE LOCAL, STATE, AND FEDERAL
LAWS, RULES, AND REGULATIONS, (B) COORDINATE THE PROCESSING OF
PERMIT APPLICATIONS, IMPACT STATEMENTS, AND OTHER INFORMATION
WHICH GEOTHERMAL RESOURCES DEVELOPERS ARE REQUIRED TO PROVIDE, (C)
ENCOURAGE UNIFORMITY WITH RESPECT TO LOCAL AND STATE LAWS, RULES,
AND REGULATIONS WITH RESPECT TO GEOTHERMAL RESOURCES DEVELOPMENT,
AND (D) ENCOURAGE ESTABLISHMENT OF LAND USE PLANS, WHICH WOULD
INCLUDE ZONING FOR GEOTHERMAL RESOURCES DEVELOPMENT AND WHICH
WOULD ASSURE THAT GEOTHERMAL RESOURCES DEVELOPERS WILL BE ABLE TO
CARRY OUT DEVELOPMENT PROGRAMS TO THE PRODUCTION STAGE.
(B) THE CHAIRMAN, ACTING THROUGH THE APPROPRIATE FEDERAL AGENCIES AND
IN COOPERATION WITH NON-FEDERAL ENTITIES, SHALL IMPLEMENT A COORDINATED
PROGRAM OF RESEARCH AND DEVELOPMENT IN ORDER TO DEMONSTRATE THE
TECHNICAL MEANS FOR THE EXTRACTION AND UTILIZATION OF THE RESOURCE BASE,
INCLUDING ANY BYPRODUCTS OF SUCH BASE, AND IN ORDER TO ACCOMPLISH THE
GOALS ESTABLISHED BY SUBSECTION (A). RESEARCH AUTHORIZED BY THIS ACT
HAVING POTENTIAL APPLICATIONS IN MATTERS OTHER THAN GEOTHERMAL ENERGY
MAY BE PURSUED TO THE EXTENT THAT THE FINDINGS OF SUCH RESEARCH CAN BE
PUBLISHED IN A FORM FOR UTILIZATION BY OTHERS.
DEMONSTRATION "30 USC 1125."
SEC. 105. (A) THE CHAIRMAN, ACTING THROUGH THE APPROPRIATE FEDERAL
AGENCIES AND IN COOPERATION WITH NON-FEDERAL ENTITIES, SHALL INITIATE A
PROGRAM TO DESIGN AND CONSTRUCT GEOTHERMAL DEMONSTRATION PLANTS. THE
SPECIFIC GOALS OF SUCH PROGRAM SHALL INCLUDE--,
(1) THE DEVELOPMENT OF ECONOMICAL GEOTHERMAL RESOURCES
PRODUCTION SYSTEMS AND COMPONENTS WHICH MEET ENVIRONMENTAL
STANDARDS;
(2) THE DESIGN OF PLANTS TO PRODUCE ELECTRIC POWER AND, WHERE
APPROPRIATE, THE LARGE-SCALE PRODUCTION AND UTILIZATION OF ANY
USEFUL BYPRODUCTS;
(3) THE INVOLVEMENT OF ENGINEERS, ANALYSTS, TECHNICIANS, AND
MANAGERS FROM INDUSTRY FIELD AND POWERPLANT DEVELOPMENT, WHICH
SHALL LEAD TO THE EARLY INDUSTRIAL EXPLOITATION OF ADVANCED
GEOTHERMAL RESOURCES;
(4) THE PROVISION FOR AN ADEQUATE SUPPLY OF TRAINED GEOTHERMAL
ENGINEERS AND TECHNICIANS;
(5) THE PROVISION OF EXPERIMENTAL TEST BEDS FOR COMPONENT
TESTING AN EVALUATION BY LABORATORIES OPERATED BY THE FEDERAL
GOVERNMENT, INDUSTRY, OR INSTITUTIONS OF HIGHER EDUCATION;
(6) THE CONSTRUCTION AND OPERATION OF PILOT PLANTS; AND
(7) THE CONSTRUCTION AND OPERATION OF DEMONSTRATION PLANTS.
(B) IN CARRYING OUT HIS RESPONSIBILITIES UNDER THIS SECTION, THE
CHAIRMAN, ACTING THROUGH THE APPROPRIATE FEDERAL AGENCIES, AND IN
COOPERATION WITH NON-FEDERAL ENTITIES, MAY PROVIDE FOR THE ESTABLISHMENT
OF ONE OR MORE DEMONSTRATION PROJECTS UTILIZING EACH GEOTHERMAL RESOURCE
BASE INVOLVED, WHICH SHALL INCLUDE, AS APPROPRIATE, ALL OF THE
EXPLORATION, SITING, DRILLING, PILOT PLANT CONSTRUCTION AND OPERATION,
DEMONSTRATION PLANT CONSTRUCTION AND OPERATION, AND OTHER FACILITIES AND
ACTIVITIES WHICH MAY BE NECESSARY FOR THE GENERATION OF ELECTRIC ENERGY
AND THE UTILIZATION OF GEOTHERMALRESOURCE BYPRODUCTS.
(C) THE CHAIRMAN, ACTING THROUGH THE APPROPRIATE FEDERAL AGENCIES, IS
AUTHORIZED TO INVESTIGATE AND ENTER INTO AGREEMENTS FOR THE COOPERATIVE
DEVELOPMENT OF FACILITIES TO DEMONSTRATE THE PRODUCTION OF ENERGY FROM
GEOTHERMAL RESOURCES. THE RESPONSIBLE FEDERAL AGENCY MAY CONSIDER--,
(1) COOPERATIVE AGREEMENTS WITH UTILITIES AND NON-FEDERAL
GOVERNMENTAL ENTITIES FOR CONSTRUCTION OF FACILITIES TO PRODUCE
ENERGY FOR COMMERCIAL DISPOSITION; AND
(2) COOPERATIVE AGREEMENTS WITH OTHER FEDERAL AGENCIES FOR THE
CONSTRUCTION AND OPERATION OF FACILITIES TO PRODUCE ENERGY FOR
DIRECT FEDERAL CONSUMPTION.
(D) THE RESPONSIBLE FEDERAL AGENCY IS AUTHORIZED TO INVESTIGATE THE
FEASIBILITY OF, CONSTRUCT, AND OPERATE, DEMONSTRATION PROJECTS WITHOUT
ENTERING INTO COOPERATIVE AGREEMENTS WITH RESPECT TO SUCH PROJECTS, THE
THE CHAIRMAN FINDS THAT--,
(1) THE NATURE OF THE RESOURCE, THE GEOGRAPHICAL LOCATION, THE
SCALE AND ENGINEERING DESIGN OF THE FACILITIES, THE TECHNIQUES OF
PRODUCTION, OR ANY OTHER SIGNIFICANT FACTOR OF THE PROPOSAL OFFERS
OPPORTUNITIES TO MAKE IMPORTANT CONTRIBUTIONS TO THE GENERAL
KNOWLEDGE OF GEOTHERMAL RESOURCES, THE TECHNIQUES OF ITS
DEVELOPMENT, OR PUBLIC CONFIDENCE IN THE TECHNOLOGY; AND
(2) THERE IS NO OPPORTUNITY FOR COOPERATIVE AGREEMENTS WITH ANY
UTILITY OR NON-FEDERAL GOVERNMENTAL ENTITY WILLING AND ABLE TO
COOPERATE IN THE DEMONSTRATION PROJECT UNDER SUBSECTION (C) (1),
AND THERE IS NO OPPORTUNITY FOR COOPERATIVE AGREEMENTS WITH OTHER
AGENCIES UNDER SUBSECTION (C) (2).
(E) BEFORE FAVORABLY CONSIDERING PROPOSALS UNDER SUBSECTION (C), THE
RESPONSIBLE FEDERAL AGENCY MUST FIND THAT--,
(1) THE NATURE OF THE RESOURCE, THE GEOGRAPHICAL LOCATION, THE
SCALE AND ENGINEERING DESIGN OF THE FACILITIES, THE TECHNIQUES OF
PRODUCTION, OR ANY OTHER SIGNIFICANT FACTOR OF THE PROPOSAL OFFERS
OPPORTUNITIES TO MAKE IMPORTANT CONTRIBUTIONS TO THE GENERAL
KNOWLEDGE OF GEOTHERMAL RESOURCES, THE TECHNIQUES OF ITS
DEVELOPMENT, OR PUBLIC CONFIDENCE IN THE TECHNOLOGY;
(2) THE DEVELOPMENT OF THE PRACTICAL BENEFITS AS SET FORTH IN
PARAGRAPH (1) ARE UNLIKELY TO BE ACCOMPLISHED WITHOUT SUCH
COOPERATIVE DEVELOPMENT; AND
(3) WHERE NON-FEDERAL PARTICIPANTS ARE INVOLVED, THE PROPOSAL
IS NOT ELIGIBLE FOR ADEQUATE FEDERAL ASSISTANCE UNDER THE LOAN
GUARANTY PROVISIONS OF TITLE II OF THIS ACT.
(F) IF THE ESTIMATE OF THE FEDERAL INVESTMENT WITH RESPECT TO
CONSTRUCTION AND OPERATION COSTS OF ANY DEMONSTRATION PROJECT PROPOSED
TO BE ESTABLISHED UNDER THIS SECTION EXCEEDS $10,000,000, NO AMOUNT MAY
BE APPROPRIATED FOR SUCH PROJECT EXCEPT AS SPECIFICALLY AUTHORIZED BY
LEGISLATION HEREAFTER ENACTED BY THE CONGRESS.
(G) (1) AT THE CONCLUSION OF THE PROGRAM UNDER THIS SECTION OR AS
SOON THEREAFTER AS MAY BE PRACTICABLE, THE RESPONSIBLE FEDERAL AGENCIES
SHALL, BY SALE, LEASE, OR OTHERWISE, DISPOSE OF ALL FEDERAL PROPERTY
INTERESTS WHICH THEY HAVE ACQUIRED PURSUANT TO THIS SECTION (INCLUDING
MINERAL RIGHTS) IN ACCORDANCE WITH EXISTING LAW AND THE TERMS OF THE
COOPERATIVE AGREEMENTS INVOLVED.
(2) THE AGENCY INVOLVED SHALL, UNDER APPROPRIATE AGREEMENTS OR OTHER
ARRANGEMENTS, PROVIDE FOR THE DISPOSITION OF GEOTHERMAL RESOURCE
BYPRODUCTS OF THE PROJECT ADMINISTERED BY SUCH AGENCY.
SCIENTIFIC AND TECHNICAL EDUCATION "30 USC 1126."
SEC. 106. (A) IT IS THE POLICY OF THE CONGRESS TO ENCOURAGE THE
DEVELOPMENT AND MAINTENANCE OF PROGRAMS THROUGH WHICH THERE MAY BE
PROVIDED THE NECESSARY TRAINED PERSONNEL TO PERFORM REQUIRED GEOTHERMAL
RESEARCH, DEVELOPMENT, AND DEMONSTRATION ACTIVITIES UNDER SECTIONS 103,
104, AND 105.
(B) THE NATIONAL SCIENCE FOUNDATION IS AUTHORIZED TO SUPPORT PROGRAMS
OF EDUCATION IN THE SCIENCES AND ENGINEERING TO CARRY OUT THE POLICY OF
SUBSECTION (A). SUCH SUPPORT MAY INCLUDE FELLOWSHIPS, TRAINEESHIPS,
TECHNICAL TRAINING PROGRAMS, TECHNOLOGIST TRAINING PROGRAMS, AND SUMMER
INSTITUTE PROGRAMS.
(C) THE NATIONAL SCIENCE FOUNDATION IS AUTHORIZED AND DIRECTED TO
COORDINATE ITS ACTIONS, TO THE MAXIMUM EXTENT PRACTICABLE, WITH THE
PROJECT OR ANY PERMANENT FEDERAL ORGANIZATION OR AGENCY HAVING
JURISDICTION OVER THE ENERGY RESEARCH AND DEVELOPMENT FUNCTIONS OF THE
UNITED STATES, IN DETERMINING THE OPTIMAL SELECTION OF PROGRAMS OF
EDUCATION TO CARRY OUT THE POLICY OF SUBSECTION (A).
(D) THE NATIONAL SCIENCE FOUNDATION IS AUTHORIZED TO ENCOURAGE, TO
THE MAXIMUM EXTENT PRACTICABLE INTERNATIONAL PARTICIPATION AND
COOPERATION IN THE DEVELOPMENT AND MAINTENANCE OF PROGRAMS OF EDUCATION
TO CARRYING OUT THE POLICY OF SUBSECTION (A).
ESTABLISHMENT OF LOAN GUARANTY PROGRAM "30 USC 1141."
SEC. 201. (A) IT IS THE POLICY OF THE CONGRESS TO ENCOURAGE AND
ASSIST IN THE COMMERCIAL DEVELOPMENT OF PRACTICABLE MEANS TO PRODUCE
USEFUL ENERGY FROM GEOTHERMAL RESOURCES WITH ENVIRONMENTALLY ACCEPTABLE
PROCESSES. ACCORDINGLY, IT IS THE POLICY OF THE CONGRESS TO FACILITATE
SUCH COMMERCIAL DEVELOPMENT BY AUTHORIZING THE CHAIRMAN OF THE PROJECT
TO DESIGNATE AN APPROPRIATE FEDERAL AGENCY TO GUARANTEE LOANS FOR SUCH
PURPOSES.
(B) IN ORDER TO ENCOURAGE THE COMMERCIAL PRODUCTION OF ENERGY FROM
GEOTHERMAL RESOURCES, THE HEAD OF THE DESIGNATED AGENCY IS AUTHORIZED
TO, IN CONSULTATION WITH THE SECRETARY OF THE TREASURY, GUARANTEE, AND
TO ENTER INTO COMMITMENTSTO GUARANTEE, LENDERS AGAINST LOSS OF PRINCIPLE
OR INTEREST ON LOANS MADE BY SUCH LENDERS TO QUALIFIED BORROWERS FOR THE
PURPOSES OF--,
(1) THE DETERMINATION AND EVALUATION OF THE RESOURCE BASE;
(2) RESEARCH AND DEVELOPMENT WITH RESPECT TO EXTRACTION AND
UTILIZATION TECHNOLOGIES;
(3) ACQUIRING RIGHTS IN GEOTHERMAL RESOURCES; OR
(4) DEVELOPMENT, CONSTRUCTION, AND OPERATION OF FACILITIES FOR
THE DEMONSTRATION OR COMMERCIAL PRODUCTION OF ENERGY FROM
GEOTHERMAL RESOURCES.
(C) ANY GUARANTY UNDER THIS TITLE SHALL APPLY ONLY TO SO MUCH OF THE
PRINCIPLE AMOUNT OF ANY LOAN AS DOES NOT EXCEED 75 PERCENT OF THE
AGGREGATE COST OF THE PROJECT WITH RESPECT TO WHICH THE LOAN IS MADE.
(D) LOAN GUARANTIES UNDER THIS TITLE SHALL BE ON SUCH TERMS AND
CONDITIONS AS THE HEAD OF THE DESIGNATED AGENCY DETERMINES, EXCEPT THAT
A GUARANTY SHALL BE MADE UNDER THIS TITLE ONLY IF--,
(1) THE LOAN BEARS INTEREST AT A RATE NOT TO EXCEED SUCH ANNUAL
PERCENTUM ON THE PRINCIPLE OBLIGATION OUTSTANDING AS THE HEAD OF
THE DESIGNATED AGENCY DETERMINES TO BE REASONABLE, TAKING INTO
ACCOUNT THE RANGE OF INTEREST RATES PREVAILING IN THE PRIVATE
SECTOR FOR SIMILAR LOANS AND RISKS BY THE UNITED STATES;
(2) THE TERMS OF SUCH LOAN REQUIRE FULL REPAYMENT OVER A PERIOD
NOT TO EXCEED THIRTY YEARS, OR THE USEFUL LIFE OF ANY PHYSICAL
ASSET TO BE FINANCED BY SUCH LOAN, WHICHEVER IS LESS (AS
DETERMINED BY THE HEAD OF THE DESIGNATED AGENCY);
(3) IN THE JUDGMENT OF THE HEAD OF THE DESIGNATED AGENCY, THE
AMOUNT OF THE LOAN (WHEN COMBINED WITH AMOUNTS AVAILABLE TO THE
QUALIFIED BORROWER FROM OTHER SOURCES) WILL BE SUFFICIENT TO CARRY
OUT THE PROJECT; AND
(4) IN THE JUDGMENT OF THE HEAD OF THE DESIGNATED AGENCY, THERE
IS REASONABLE ASSURANCE OF REPAYMENT OF THE LOAN BY THE QUALIFIED
BORROWER OF THE GUARANTEED INDEBTEDNESS.
(E) THE AMOUNT OF THE GUARANTY FOR ANY LOAN FOR A PROJECT SHALL NOT
EXCEED $25,000,000, AND THE AMOUNT OF THE GUARANTY FOR ANY COMBINATION
OF LOANS FOR ANY SINGLE QUALIFIED BORROWER SHALL NOT EXCEED $50,000,000.
(F) AS USED IN THIS TITLE, THE TERM "QUALIFIED BORROWER" MEANS ANY
PUBLIC OR PRIVATE AGENCY, INSTITUTION, ASSOCIATION, PARTNERSHIP,
CORPORATION, POLITICAL SUBDIVISION, OR OTHER LEGAL ENTITY WHICH (AS
DETERMINED BY THE HEAD OF THE DESIGNATED AGENCY) HAS PRESENTED
SATISFACTORY EVIDENCE OF AN INTEREST IN GEOTHERMAL RESOURCES AND IS
CAPABLE OF PERFORMING RESEARCH OR COMPLETING THE DEVELOPMENT AND
PRODUCTION OF ENERGY IN AN ACCEPTABLE MANNER.
PAYMENT OF INTEREST "30 USC 1142."
SEC. 202. (A) WITH RESPECT TO ANY LOAN GUARANTEED PURSUANT TO THIS
TITLE, THE HEAD OF THE DESIGNATED AGENCY IS AUTHORIZED TO ENTER INTO A
CONTRACT TO PAY, AND TO PAY, THE LENDER FOR AND ON BEHALF OF THE
BORROWER THE INTEREST CHARGES WHICH BECOME DUE AND PAYABLE ON THE UNPAID
BALANCE OF ANY SUCH LOAN IF THE HEAD OF THE DESIGNATED AGENCY FINDS--,
(1) THE THE BORROWER IS UNABLE TO MEET INTEREST CHARGES, AND
THAT IT IS IN THE PUBLIC INTEREST TO PERMIT THE BORROWER TO
CONTINUE TO PURSUE THE PURPOSES OF HIS PROJECT, AND THAT THE
PROBABLE NET COST TO THE FEDERAL GOVERNMENT IN PAYING SUCH
INTEREST WILL BE LESS THAN THAT WHICH WOULD RESULT IN THE EVENT OF
A DEFAULT; AND
(2) THE AMOUNT OF SUCH INTEREST CHARGES WHICH THE HEAD OF THE
DESIGNATED AGENCY IS AUTHORIZED TO PAY SHALL BE NO GREATER THAN
THE AMOUNT OF INTEREST WHICH THE BORROWER IS OBLIGATED TO PAY
UNDER THE LOAN AGREEMENT.
(B) IN THE EVENT OF ANY DEFAULT BY A QUALIFIED BORROWER ON A
GUARANTEED LOAN, THE HEAD OF THE DESIGNATED AGENCY IS AUTHORIZED TO MAKE
PAYMENT IN ACCORDANCE WITH THE GUARANTY, AND THE ATTORNEY GENERAL SHALL
TAKE SUCH ACTION AS MAY BE APPROPRIATE TO RECOVER THE AMOUNTS OF SUCH
PAYMENTS (INCLUDING ANY PAYMENT OF INTEREST UNDER SUBSECTION (A)) FROM
SUCH ASSETS OF THE DEFAULTING BORROWER AS ARE ASSOCIATED WITH THE
PROJECT, OR FROM ANY OTHER SURETY INCLUDED IN THE TERMS OF THE GUARANTY.
PERIOD OF GUARANTIES AND INTEREST ASSISTANCE "30 USC 1143."
SEC. 203. NO LOAN GUARANTIES SHALL BE MADE, OR INTEREST ASSISTANCE
CONTRACT ENTERED INTO, PURSUANT TO THIS TITLE, AFTER THE EXPIRATION OF
THE TEN-CALENDAR-YEAR PERIOD FOLLOWING THE DATE OF ENACTMENT OF THIS
ACT.
GEOTHERMAL RESOURCES DEVELOPMENT FUND "30 USC 1144."
SEC. 204. (A) THERE IS ESTABLISHED IN THE TREASURY OF THE UNITED
STATES A GEOTHERMAL RESOURCES DEVELOPMENT FUND, WHICH SHALL BE AVAILABLE
TO THE HEAD OF THE DESIGNATED AGENCY FOR CARRYING OUT THE LOAN GUARANTY
AND INTEREST ASSISTANCE PROGRAM AUTHORIZED BY THIS TITLE, INCLUDING THE
PAYMENT OF ADMINISTRATIVE EXPENSES INCURRED IN CONNECTION THEREWITH.
MONEYS IN THE FUND NOT NEEDED FOR CURRENT OPERATIONS MAY, WITH THE
APPROVAL OF THE SECRETARY OF THE TREASURY, BE INVESTED IN BONDS OR OTHER
OBLIGATIONS OF, OR GUARANTEED BY, THE UNITED STATES.
(B) THERE SHALL BE PAID INTO THE FUNDTHE AMOUNTS APPROPRIATED
PURSUANT TO SECTION 304(C) AND SUCH AMOUNTS AS MAY BE RETURNED TO THE
UNITED STATES PURSUANT TO SECTION 202(B), AND THE AMOUNTS IN THE FUND
SHALL REMAIN AVAILABLE UNTIL EXPENDED, EXCEPT THAT AFTER THE EXPIRATION
OF THE TEN-YEAR PERIOD ESTABLISHED BY SECTION 203, SUCH AMOUNTS IN THE
FUND WHICH ARE NOT REQUIRED TO SECURE OUTSTANDING GUARANTY OBLIGATIONS
SHALL BE PAID INTO THE GENERAL FUND OF THE TREASURY.
(C) BUSINESS-TYPE FINANCIAL REPORTS COVERING THE OPERATIONS OF THE
FUND SHALL BE SUBMITTED TO THE CONGRESS BY THE HEAD OF THE DESIGNATED
AGENCY ANNUALLY UPON THE COMPLETION OF AN APPROPRIATE ACCOUNTING PERIOD.
PROTECTION OF ENVIRONMENT "30 USC 1161."
SEC. 301. IN THE CONDUCT OF ITS ACTIVITIES, THE PROJECT AND ANY
PARTICIPATING PUBLIC OR PRIVATE PERSONS OR AGENCIES SHALL PLACE
PARTICULAR EMPHASIS UPON THE OBJECTIVE OF ASSURING THAT THE ENVIRONMENT
AND THE SAFETY OF PERSONS OR PROPERTY ARE EFFECTIVELY PROTECTED; AND
THE PROGRAM UNDER TITLE I SHALL INCLUDE SUCH SPECIAL RESEARCH AND
DEVELOPMENT AS MAY BE NECESSARY FOR THE ACHIEVEMENT OF THAT OBJECTIVE.
REPORTING REQUIREMENTS "30 USC 1162."
SEC. 302. (A) THE CHAIRMAN OF THE PROJECT SHALL SUBMIT TO THE
PRESIDENT AND THE CONGRESS FULL AND COMPLETE ANNUAL REPORTS OF THE
ACTIVITIES OF THE PROJECT, INCLUDING SUCH PROJECTIONS AND ESTIMATES AS
MAY BE NECESSARY TO EVALUATE THE PROGRESS OF THE NATIONAL GEOTHERMAL
ENERGY RESEARCH, DEVELOPMENT, AND DEMONSTRATION PROGRAM AND TO PROVIDE
THE BASIS FOR AS ACCURATE A JUDGMENT AS IS POSSIBLE CONCERNING THE
EXTENT TO WHICH THE OBJECTIVES OF THIS ACT WILL HAVE BEEN ACHIEVED BY
JUNE 30, 1980.
(B) NO LATER THAN ONE YEAR AFTER THE TERMINATION OF EACH
DEMONSTRATION PROJECT UNDER SECTION 105, THE CHAIRMAN OF THE PROJECT
SHALL SUBMIT TO THE PRESIDENT AND THE CONGRESS A FINAL REPORT ON THE
ACTIVITIES OF THE PROJECT RELATED TO EACH PROJECT, INCLUDING HIS
RECOMMENDATIONS WITH RESPECT TO ANY FURTHER LEGISLATIVE, ADMINISTRATIVE,
AND OTHER ACTIONS WHICH SHOULD BE TAKEN IN SUPPORT OF THE OBJECTIVES OF
THIS ACT.
TRANSFER ON FUNCTIONS "30 USC 1163."
SEC. 303. (A) WITHIN SIXTY DAYS AFTER THE EFFECTIVE DATE OF THE LAW
CREATING A PERMANENT FEDERAL ORGANIZATIONS OR AGENCY HAVING JURISDICTION
OVER THE ENERGY RESEARCH AND DEVELOPMENTFUNCTIONS OF THE UNITED STATES
(OR WITHIN SIXTY DAYS AFTER THE DATE OF THE ENACTMENT OF THIS ACT IF THE
EFFECTIVE DATE OF SUCH LAW OCCURS PRIOR TO THE DATE OF THE ENACTMENT OF
THIS ACT), ALL OF THE RESEARCH, DEVELOPMENT, AND DEMONSTRATION FUNCTIONS
(INCLUDING THE LOAN GUARANTY PROGRAM) VESTED IN THE PROJECT UNDER THIS
ACT, ALONG WITH RELATED RECORDS, DOCUMENTS, PERSONNEL, OBLIGATIONS, AND
OTHER ITEMS TO THE EXTENT NECESSARY OR APPROPRIATE, SHALL, IN ACCORDANCE
WITH REGULATIONS PRESCRIBED BY THE OFFICE OF MANAGEMENT AND BUDGET, BE
TRANSFERRED TO AND VESTED IN SUCH ORGANIZATION OR AGENCY.
(B) UPON THE ESTABLISHMENT OF A PERMANENT FEDERAL ORGANIZATION OR
AGENCY HAVING JURISDICTION OVER THE ENERGY RESEARCH AND DEVELOPMENT
FUNCTIONS OF THE UNITED STATES, AND WHEN ALL RESEARCH AND DEVELOPMENT
(AND OTHER) FUNCTIONS OF THE PROJECT ARE TRANSFERRED, THE MEMBERS OF THE
PROJECT MAY PROVIDE ADVICE AND COUNSEL TO THE HEAD OF SUCH ORGANIZATION
OR AGENCY, IN ACCORDANCE WITH ARRANGEMENTS MADE AT THAT TIME.
SEC. 304. (A) FOR THE FISCAL YEARS ENDING JUNE 30, 1976, AND
SEPTEMBER 30, 1977, 1978, 1979, AND 1980, ONLY SUCH SUMS MAY BE
APPROPRIATED AS THE CONGRESS MAY HEREAFTER AUTHORIZE BY LAW.
(B) THERE ARE AUTHORIZED TO BE APPROPRIATED TO THE NATIONAL
AERONAUTICS AND SPACE ADMINISTRATION NOT TO EXCEED $2,500,000 FOR THE
FISCAL YEAR ENDING JUNE 30, 1975, FOR THE PURPOSE OF PREPARING THE
PROGRAM DEFINITION UNDER SECTION 102(A).
(C) IN ADDITION TO SUMS AUTHORIZED TO BE APPROPRIATED BY SUBSECTION
(B), THERE ARE AUTHORIZED TO BE APPROPRIATED OT THE FUND NOT TO EXCEED
$50,000,000 ANNUALLY, SUCH SUMS TO CARRY OUT THE PROVISIONS OF THE LOAN
GUARANTY PROGRAM BY THE PROJECT UNDER TITLE II.
LEGISLATIVE HISTORY:
HOUSE REPORTS: NO. 93 - 1112 (COMM. ON SCIENCE AND ASTRONAUTICS) AND
NO. 93 - 1301 (COMM. OF CONFERENCE).
SENATE REPORT: NO. 93 - 849 ACCOMPANYING S. 2465 (COMM. ON INTERIOR
AND INSULAR AFFAIRS).
CONGRESSIONAL RECORD, VOL. 120 (1974):
JULY 10, CONSIDERED AND PASSED HOUSE.
JULY 11, CONSIDERED AND PASSED SENATE, AMENDED, IN LIEU OF S.
2465.
AUG. 20, SENATE AGREED TO CONFERENCE REPORT.
AUG. 21, HOUSE AGREED TO CONFERENCE REPORT.
PUBLIC LAW 93-409, 88 STAT. 1069 SOLAR HEATING AND COOLING
DEMONSTRATION ACT OF 1974
BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE
UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT THIS ACT MAY BE
CITED AS THE "SOLAR HEATING AND COOLING DEMONSTRATION ACT OF 1974". "42
USC 5501 NOTE."
FINDINGS AND POLICY "42 USC 5501."
SEC. 2. (A) THE CONGRESS HEREBY FINDS THAT--,
(1) THE CURRENT IMBALANCE BETWEEN SUPPLY AND-DEMAND FOR FUELS
AND ENERGY IS LIKELY TO PERSIST FOR SOMETIME;
(2) THE EARLY DEMONSTRATION OF THE FEASIBILITY OF USING SOLAR
ENERGY FOR THE HEATING AND COOLING OF BUILDINGS COULD HELP TO
RELIEVE THE DEMAND UPON PRESENT FUEL AND ENERGY SUPPLIES;
(3) THE TECHNOLOGIES FOR SOLAR HEATING ARE CLOSE TO THE POINT
OF COMMERCIAL APPLICATION IN THE UNITED STATES;
(4) THE TECHNOLOGIES FOR COMBINED SOLAR HEATING AND COOLING
STILL REQUIRE RESEARCH, DEVELOPMENT, TESTING AND DEMONSTRATION,
BUT NO INSOLUBLE TECHNICAL PROBLEM IS NOW FORESEEN IN ACHIEVING
COMMERCIAL USE OF SUCH TECHNOLOGIES;
(5) THE EARLY DEVELOPMENT AND EXPORT OF VIABLE SOLAR HEATING
EQUIPMENT AND COMBINED SOLAR HEATING AND COOLING EQUIPMENT,
CONSISTENT WITH THE ESTABLISHED PREEMINENCE OF THE UNITED STATES
IN THE FIELD OF HIGH TECHNOLOGY PRODUCTS, CAN MAKE A VALUABLE
CONTRIBUTION TO OUR BALANCE OF TRADE;
(6) THE WIDESPREAD USE OF SOLAR ENERGY IN PLACE OF CONVENTIONAL
METHODS FOR THE HEATING AND COOLING OF BUILDINGS WOULD HAVE A
SIGNIFICANTLY BENEFICIAL EFFECT UPON THE ENVIRONMENT;
(7) THE MASS PRODUCTION AND USE OF SOLAR HEATING AND COOLING
EQUIPMENT WILL HELP TO ELIMINATE THE DEPENDENCE OF THE UNITED
STATES UPON FOREIGN ENERGY SOURCES AND PROMOTE THE NATIONAL
DEFENSE;
(8) THE WIDESPREAD INTRODUCTION OF LOW-COST SOLAR ENERGY WILL
BE BENEFICIAL TO CONSUMERS IN A PERIOD OF RAPIDLY RISING FUEL
COST;
(9) INNOVATION AND CREATIVITY IN THE DEVELOPMENT OF SOLAR
HEATING AND COMBINED SOLAR HEATING AND COOLING COMPONENTS AND
SYSTEMS CAN BE FOSTERED THROUGH ENCOURAGING DIRECT CONTACT BETWEEN
THE MANUFACTURERS OF SUCH SYSTEMS AND THE ARCHITECTS, ENGINEERS,
DEVELOPERS, CONTRACTORS, AND OTHER PERSONS INTERESTED IN
INSTALLING SUCH SYSTEMS IN BUILDINGS;
(10) EVALUATION OF THE PERFORMANCE AND RELIABILITY OF SOLAR
HEATING AND COMBINED SOLAR HEATING AND COOLING TECHNOLOGIES CAN BE
EXPEDITED BY TESTING UNDER CAREFULLY CONTROLLED CONDITIONS; AND
(11) COMMERCIAL APPLICATION OF SOLAR HEATING AND COMBINED SOLAR
HEATING AND COOLING TECHNOLOGIES CAN BE EXPEDITED BY EARLY
COMMERCIAL DEMONSTRATION UNDER PRACTICAL CONDITIONS.
(B) IT IS THEREFORE DECLARED TO BE THE POLICY OF THE UNITED STATES
AND THE PURPOSE OF THIS ACT TO PROVIDE FOR THE DEMONSTRATION WITHIN A
THREE-YEAR PERIOD OF THE PRACTICAL USE OF SOLAR HEATING TECHNOLOGY, AND
TO PROVIDE FOR THE DEVELOPMENT AND DEMONSTRATION WITHIN A FIVE-YEAR
PERIOD OF THE PRACTICAL USE OF COMBINED HEATING AND COOLING TECHNOLOGY.
SEC. 3. PURPOSES OF THIS ACT--,
(1) THE TERM "SOLAR HEATING", WITH RESPECT TO ANY BUILDING,
MEANS THE USE OF SOLAR ENERGY TO MEET SUCH PORTION OF THE TOTAL
HEATING NEEDS OF SUCH BUILDING (INCLUDING HOT WATER), OR SUCH
PORTION OF THE NEEDS OF SUCH BUILDING FOR HOT WATER (WHERE ITS
REMAINING HEATING NEEDS ARE MET BY OTHER METHODS), AS MAY BE
REQUIRED UNDER PERFORMANCE CRITERIA PRESCRIBED BY THE SECRETARY OF
HOUSING AND URBAN DEVELOPMENT UTILIZING THE SERVICES OF THE
DIRECTOR OF THE NATIONAL BUREAU OF STANDARDS, AND IN CONSULTATION
WITH THE DIRECTOR OF THE NATIONAL SCIENCE FOUNDATION, AND THE
ADMINISTRATOR OF THE NATIONAL AERONAUTICS AND SPACE
ADMINISTRATION;
(2) THE TERMS "SOLAR HEATING AND COOLING" AND "COMBINED SOLAR
HEATING AND COOLING", WITH RESPECT TO ANY BUILDING, MEAN THE USE
OF SOLAR ENERGY TO PROVIDE BOTH SUCH PORTION OF THE TOTAL HEATING
NEEDS OF SUCH BUILDING (INCLUDING HOT WATER) AND SUCH PORTION OF
THE TOTAL COOLING NEEDS OF SUCH BUILDING, OR SUCH PORTION OF THE
NEEDS OF SUCH BUILDING FOR HOT WATER (WHERE ITS REMAINING HEATING
NEEDS ARE MET BY OTHER METHODS) AND SUCH PORTION OF THE TOTAL
COOLING NEEDS OF A BUILDING, AS MAY BE REQUIRED UNDER PERFORMANCE
CRITERIA PRESCRIBED BY THE SECRETARY OF HOUSING AND URBAN
DEVELOPMENT UTILIZING THE SERVICES OF THE DIRECTOR OF THE NATIONAL
BUREAU OF STANDARDS, AND IN CONSULTATION WITH THE DIRECTOR OF THE
NATIONAL SCIENCE FOUNDATION, AND THE ADMINISTRATOR OF THE NATIONAL
AERONAUTICS AND SPACE ADMINISTRATION, AND SUCH TERM INCLUDES
COOLING BY MEANS OF NOCTURNAL HEAT RADIATION, BY EVAPORATION, OR
BY OTHER METHODS OF MEETING PEAKLOAD ENERGY REQUIREMENTS AT
NONPEAKLOAD TIMES;
(3) THE TERM "RESIDENTIAL DWELLINGS" INCLUDES PREVIOUSLY
OCCUPIED AND NEW SINGLE FAMILY AND MULTIFAMILY DWELLINGS, MOBILE
HOMES, AND PUBLICLY ASSISTED HOUSING OWNED BY A PRIVATE SPONSOR OR
A STATE OR LOCAL HOUSING AUTHORITY NOT COVERED BY SECTION 17;
(4) THE TERM "ADMINISTRATOR" MEANS THE ADMINISTRATOR OF THE
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION;
(5) THE TERM "SECRETARY" MEANS THE SECRETARY OF HOUSING AND
URBAN DEVELOPMENT; AND
(6) THE TERM "DIRECTOR" MEANS THE DIRECTOR OF THE NATIONAL
SCIENCE FOUNDATION.
CONDUCT OF ACTIVITIES IN SOLAR HEATING AND COOLING TECHNOLOGIES
BY NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
SEC. 4. SECTION 203 OF THE NATIONAL AERONAUTICS AND SPACE ACT OF
1958 (42 U.S.C. 2473) "72 STAT. 429." IS AMENDED BY REDESIGNATING
SUBSECTION (B) AS SUBSECTION (C), AND BY INSERTING IMMEDIATELY AFTER
SUBSECTION (A) THE FOLLOWING NEW SUBSECTION:
"(B) THE ADMINISTRATION SHALL INITIATE, SUPPORT, AND CARRY OUT SUCH
RESEARCH, DEVELOPMENT, DEMONSTRATIONS, AND OTHER RELATED ACTIVITIES IN
SOLAR HEATING AND COOLING TECHNOLOGIES (TO THE EXTENT THAT FUNDS ARE
APPROPIATED THEREFOR) AS ARE PROVIDED FOR IN SECTIONS 5,6, AND 9 OF THE
SOLAR HEATING AND COOLING DEMONSTRATION ACT OF 1974.".
DEVELOPMENT AND DEMONSTRATION OF SOLAR HEATING SYSTEMS TO BE
USED IN RESIDENTIAL DWELLINGS "42 USC 5503."
SEC. 5. (A) THE ADMINISTRATOR AND THE SECRETARY SHALL PROMPTLY
INITIATE AND CARRY OUT A PROGRAM, AS PROVIDED IN THIS SECTION, FOR THE
DEVELOPMENT AND DEMONSTRATION OF SOLAR HEATING SYSTEMS (INCLUDING
COLLECTORS, CONTROLS, AND THERMAL STORAGE) FOR USE IN RESIDENTIAL
DWELLINGS.
(B) (1) WITHIN 120 DAYS AFTER THE DATE OF THE ENACTMENT OF THIS ACT,
THE SECRETARY, UTILIZING THE SERVICES OF THE DIRECTOR OF THE NATIONAL
BUREAU OF STANDARDS AND IN CONSULTATION WITH THE ADMINISTRATOR AND THE
DIRECTOR, SHALL DETERMINE, PRESCRIBE, AND PUBLISH--,
(A) INTERIM PERFORMANCE CRITERIA FOR SOLAR HEATING COMPONENTS
AND SYSTEMS TO BE USED IN RESIDENTIAL DWELLINGS, AND
(B) INTERIM PERFORMANCE CRITERIA (RELATING TO SUITABILITY FOR
SOLAR HEATING) FOR SUCH DWELLINGS THEMSELVES,
TAKING INTO ACCOUNT IN EACH INSTANCE CLIMATIC VARIATIONS EXISTING
BETWEEN DIFFERENT GEOGRAPHIC AREAS.
(2) AS SOON AS POSSIBLE AFTER THE PUBLICATION OF THE PERFORMANCE
CRITERIA PRESCRIBED UNDER PARAGRAPH (1), THE SECRETARY, IN CONSULTATION
WITH THE DIRECTOR OF THE NATIONAL BUREAU OF STANDARDS AND THE
ADMINISTRATOR, WILL SELECT ON THE BASIS OF OPEN COMPETITION A NUMBER OF
DESIGNS FOR VARIOUS TYPES OF RESIDENTIAL DWELLINGS SUITABLE FOR AND
ADAPTED TO THE INSTALLATION OF SOLAR HEATING SYSTEMS MEETING THE
PERFORMANCE CRITERIA PRESCRIBED UNDER PARAGRAPH (1) (A).
(C) THE ADMINISTRATOR, IN ACCORDANCE WITH THE APPLICABLE PROVISIONS
OF TITLE II OF THE NATIONAL AERONAUTICS AND SPACE ACT OF 1958 "72 STAT.
427, 42 USC 2471 ET SEQ." AND UNDER PROGRAM GUIDELINES ESTABLISHED
JOINTLY BY THE ADMINISTRATOR AND THE SECRETARY, SHALL, AFTER
CONSULTATION WITH THE SECRETARY--
(1) ENTER INTO SUCH CONTRACTS AND GRANTS AS MAY BE NECESSARY OR
APPROPRIATE FOR THE DEVELOPMENT (FOR COMMERCIAL PRODUCTION AND
RESIDENTIAL USE) OF SOLAR HEATING SYSTEMS MEETING THE PERFORMANCE
CRITERIA PRESCRIBED UNDER SUBSECTION (B) (1) (A) (INCLUDING ANY
FURTHER PLANNING AND DESIGN WHICH MAY BE REQUIRED TO CONFORM WITH
THE SPECIFICATIONS SET FORTH IN SUCH CRITERIA); AND
(2) ENTER INTO CONTRACTS WITH A NUMBER OF PERSONS OR FIRMS FOR
THE PROCUREMENT OF SOLAR HEATING COMPONENTS AND SYSTEMS MEETING
SUCH PERFORMANCE CRITERIA (INCLUDING ADEQUATE NUMBERS OF SPARE AND
REPLACEMENT PARTS FOR SUCH SYSTEMS).
(D) THE SECRETARY SHALL (1) ARRANGE FOR THE INSTALLATION OF SOLAR
HEATING SYSTEMS PROCURED BY THE ADMINISTRATOR UNDER SUBSECTION (C) (2)
IN A SUBSTANTIAL NUMBER OF RESIDENTIAL DWELLINGS AND (2) PROVIDE FOR THE
SATISFACTORY OPERATION OF SUCH INSTALLATIONS DURING THE DEMONSTRATION
PERIOD. TITLE TO AND OWNERSHIP OF ANY DWELLINGS CONSTRUCTED HEREUNDER
AND OF SOLAR HEATING SYSTEMS INSTALLED HEREUNDER MAY BE CONVEYED TO
PURCHASERS OR OWNERS OF SUCH DWELLINGS UNDER TERMS AND CONDITIONS
PRESCRIBED BY THE SECRETARY, INCLUDING AN EXPRESS AGREEMENT THAT ANY
SUCH PURCHASER OR OWNER SHALL, IN SUCH MANNER AND FORM AND ON SUCH TERMS
AND CONDITIONS AS THE SECRETARY MAY PRESCRIBE, OBSERVE AND MONITOR (OR
PERMIT THE SECRETARY TO OBSERVE AND MONITOR) THE PERFORMANCE AND
OPERATION OF SUCH SYSTEM FOR A PERIOD OF FIVE YEARS, AND THAT SUCH
PURCHASER OR OWNER (INCLUDING ANY SUBSEQUENT OWNER AND OCCUPANT OF THE
PROPERTY WHO ALSO MAKES SUCH AN AGREEMENT) SHALL REGULARLY FURNISH THE
SECRETARY WITH SUCH REPORTS THEREON AS THE AGREEMENT MAY REQUIRE.
(E) THE SECRETARY OF DEFENSE SHALL ARRANGE FOR THE INSTALLATION OF
SOLAR HEATING SYSTEMS PROCURED BY THE ADMINISTRATOR UNDER SUBSECTION (C)
(2) IN A SUBSTANTIAL NUMBER OF RESIDENTIAL DWELLINGS WHICH ARE LOCATED
ON FEDERAL OR FEDERALLY ADMINISTERED PROPERTY WHERE THE PERFORMANCE AND
OPERATION OF SUCH SYSTEMS CAN BE REGULARLY AND EFFECTIVELY OBSERVED AND
MONITORED BY DESIGNATED FEDERAL PERSONNEL.
(F) THE SECRETARY AND THE SECRETARY OF DEFENSE, AND OFFICIALS
RESPONSIBLE FOR ADMINISTERING FEDERAL OF FEDERALLY ADMINISTERED
PROPERTY, SHALL COORDINATE THEIR ACTIVITIES UNDER THIS SECTION TO ASSURE
THAT SOLAR HEATING SYSTEMS ARE INSTALLED IN A SUBSTANTIAL NUMBER OF
RESIDENTIAL DWELLINGS AND IN A SUFFICIENT NUMBER OF DIFFERENT GEOGRAPHIC
AREAS UNDER VARYING CLIMATIC CONDITIONS TO CONSTITUTE A REALISTIC AND
EFFECTIVE DEMONSTRATION IN SUPPORT OF THE OBJECTIVES OF THIS ACT.
DEVELOPMENT AND DEMONSTRATION OF COMBINED SOLAR HEATING AND
COOLING SYSTEMS TO BE USED IN RESIDENTIAL DWELLINGS "42 USC 5504."
SEC. 6. (A) THE ADMINISTRATOR AND THE SECRETARY SHALL PROMPTLY
INITIATE AND CARRY OUT A PROGRAM, AS PROVIDED IN THIS SECTION, FOR THE
DEVELOPMENT AND DEMONSTRATION OF COMBINED SOLAR HEATING AND COOLING
SYSTEMS (INCLUDING COLLECTORS, CONTROLS, AND THERMAL STORAGE) FOR USE IN
RESIDENTIAL DWELLINGS.
(B) (1) AS SOON AS POSSIBLE AFTER THE DATE OF THE ENACTMENT OF THIS
ACT, THE SECRETARY, UTILIZING THE SERVICES OF THE DIRECTOR OF THE
NATIONAL BUREAU OF STANDARDS AND IN CONSULTATION WITH THE ADMINISTRATOR
AND THE DIRECTOR, SHALL DETERMINE, PRESCRIBE, AND PUBLISH--,
(A) INTERIM PERFORMANCE CRITERIA FOR COMBINED SOLAR HEATING AND
COOLING COMPONENTS AND SYSTEMS TO BE USED IN RESIDENTIAL
DWELLINGS, AND
(B) INTERIM PERFORMANCE CRITERIA (RELATING TO SUITABILITY FOR
SOLAR HEATING AND COOLING) FOR SUCH DWELLINGS THEMSELVES,
TAKING INTO ACCOUNT IN EACH INSTANCE CLIMATIC VARIATIONS EXISTING
BETWEEN DIFFERENT GEOGRAPHIC AREAS.
(2) AS SOON AS POSSIBLE AFTER THE PUBLICATION OF THE PERFORMANCE
CRITERIA PRESCRIBED UNDER PARAGRAPH (1) (AND IF POSSIBLE BEFORE THE
COMPLETION OF THE RESEARCH AND DEVELOPMENT PROVIDED FOR IN SUBSECTION
(C)), THE SECRETARY, IN CONSULTATION WITH THE DIRECTOR OF THE NATIONAL
BUREAU OF STANDARDS AND THE ADMINISTRATOR, WILL SELECT ON THE BASIS OF
OPEN COMPETITION A NUMBER OF DESIGNS FOR VARIOUS TYPES OF RESIDENTIAL
DWELLINGS SUITABLE FOR AND ADAPTED TO THE INSTALLATION OF COMBINED SOLAR
HEATING AND COOLING SYSTEMS MEETING THE PERFORMANCE CRITERIA PRESCRIBED
UNDER PARAGRAPH (1) (A).
(C) DURING THE PERIOD IMMEDIATELY FOLLOWING THE PUBLICATION OF
PERFORMANCE CRITERIA UNDER SUBSECTION (B) (1), THE ADMINISTRATOR, IN
COORDINATION WITH THE DIRECTOR, SHALL UNDERTAKE AND CONDUCT WITH RESPECT
TO SOLAR HEATING AND COOLING A PROGRAM OF RESEARCH, DEVELOPMENT, AND
TESTING DESIGNED TO PROVIDE THE ADDITIONAL TECHNOLOGICAL RESOURCES
NECESSARY FOR THE DEVELOPMENT AND COMMERCIAL APPLICATION OF COMBINED
SOLAR HEATING AND COOLING SYSTEMS AS COMTEMPLATED BY THE PROGRAM UNDER
THIS SECTION.
(D) THE ADMINISTRATOR, IN ACCORDANCE WITH THE APPLICABLE PROVISIONS
OF TITLE II OF THE NATIONAL AERONAUTICS AND SPACE ACT OF 1958 "72 STAT.
427, 42 USC 2471 ET SEQ." AND UNDER PROGRAM GUIDELINES ESTABLISHED
JOINTLY BY THE ADMINISTRATOR AND THE SECRETARY, AND AT THE EARLIEST
POSSIBLE TIME DURING OR IMMEDIATELY AFTER THE PERIOD SPECIFIED IN
SUBSECTION(C), SHALL, AFTER CONSULTATION WITH THE SECRETARY--,
(1) ENTER INTO SUCH CONTRACTS AND GRANTS AS MAY BE NECESSARY OR
APPROPRIATE FOR THE DEVELOPMENT (FOR COMMERCIAL PRODUCTION AND
RESIDENTIAL USE) OF COMBINED SOLAR HEATING AND COOLING SYSTEMS
MEETING THE PERFORMANCE CRITERIA PRESCRIBED UNDER SUBSECTION (B)
(1) (A) (INCLUDING ANY FURTHER PLANNING AND DESIGN WHICH MAY BE
REQUIRED TO CONFORM WITH THE SPECIFICATIONS SET FORTH IN SUCH
CRITERIA OR TO REFLECT THE RESULTS OF THE ACTIVITIES CONDUCTED
UNDER SUBSECTION (C)); AND
(2) ENTER INTO CONTRACTS WITH A NUMBER OF PERSONS OR FIRMS FOR
THE PROCUREMENT OF COMBINED SOLAR HEATING AND COOLING SYSTEMS
MEETING SUCH PERFORMANCE CRITERIA (INCLUDING ADEQUATE NUMBERS OF
SPARE AND REPLACEMENT PARTS FOR SUCH SYSTEMS).
(E) THE SECRETARY SHALL (1) ARRANGE FOR THE INSTALLATION OF COMBINED
SOLAR HEATING AND COOLING SYSTEMS PROCURED BY THE ADMINISTRATOR UNDER
SUBSECTION (D) (2) IN A SUBSTANTIAL NUMBER OF RESIDENTIAL DWELLINGS AND
(2) PROVIDE FOR THE SATISFACTORY OPERATION OF SUCH INSTALLATIONS DURING
THE DEMONSTRATION PERIOD. TITLE TO AND OWNERSHIP OF ANY DWELLINGS
CONSTRUCTED HEREUNDER AND OF COMBINED SOLAR HEATING AND COOLING SYSTEMS
INSTALLED HEREUNDER MAY BE CONVEYED TO PURCHASERS OR OWNERS OF SUCH
DWELLINGS UNDER TERMS AND CONDITIONS PRESCRIBED BY THE SECRETARY,
INCLUDING AN EXPRESS AGREEMENT THAT ANY SUCH PURCHASER OR OWNER SHALL,
IN SUCH MANNER AND FORM AND ON SUCH TERMS AND CONDITIONS AS THE
SECRETARY MAY PRESCRIBE, OBSERVE AND MONITOR (OR PERMIT THE SECRETARY TO
OBSERVE AND MONITOR) THE PERFORMANCE AND OPERATION OF SUCH SYSTEM FOR A
PERIOD OF FIVE YEARS, AND THAT SUCH PURCHASER OR OWNER (INCLUDING ANY
SUBSEQUENT OWNER AND OCCUPANT OF THE PROPERTY WHO ALSO MAKES SUCH AN
AGREEMENT) SHALL REGULARLY FURNISH THE SECRETARY WITH SUCH REPORTS
THEREON AS THE AGREEMENT MAY REQUIRE.
(F) THE SECRETARY OF DEFENSE SHALL ARRANGE FOR THE INSTALLATION OF
COMBINED SOLAR HEATING AND COOLING SYSTEMS PROCURED BY THE ADMINISTRATOR
UNDER SUBSECTION (D) (2) IN A SUBSTANTIAL NUMBER OF RESIDENTIAL
DWELLINGS WHICH ARE LOCATED ON FEDERAL OR FEDERALLY ADMINISTERED
PROPERTY WHERE THE PERFORMANCE AND OPERATION OF SUCH SYSTEMS CAN BE
REGULARLY AND EFFECTIVELY OBSERVED AND MONITORED BY DESIGNATED FEDERAL
PERSONNEL.
(G) THE SECRETARY AND THE SECRETARY OF DEFENSE, AND OFFICIALS
RESPONSIBLE FOR ADMINISTERING FEDERAL OR FEDERALLY ADMINISTERED
PROPERTY, SHALL COORDINATE THEIR ACTIVITIES UNDER THIS SECTION TO ASSURE
THAT COMBINED SOLAR HEATING AND COOLING SYSTEMS ARE INSTALLED IN A
SUBSTANTIAL NUMBER OF RESIDENTIAL DWELLINGS AND IN A SUFFICIENT NUMBER
OF GEOGRAPHIC AREAS UNDER VARYING CLIMATIC CONDITIONS TO CONSTITUTE A
REALISTIC AND EFFECTIVE DEMONSTRATION IN SUPPORT OF THE OBJECTIVES OF
THIS ACT.
COMPREHENSIVE PROGRAM DEFINITION "42 USC 5505."
SEC. 7. (A) THE ADMINISTRATOR AND THE SECRETARY ARE AUTHORIZED AND
DIRECTED TO PREPARE A COMPREHENSIVE PLAN FOR THE CONDUCT OF THE
DEVELOPMENT AND DEMONSTRATION ACTIVITIES UNDER SECTIONS 5 AND 6. IN THE
PREPARATION OF SUCH PLAN, THE ADMINISTRATOR AND SECRETARY SHALL CONSULT
WITH THE DIRECTOR OF THE NATIONAL BUREAU OF STANDARDS, THE DIRECTOR, THE
SECRETARY OF DEFENSE, AND OTHER FEDERAL AGENCIES AND PRIVATE
ORGANIZATIONS AS APPROPRIATE.
(B) THE ADMINISTRATOR AND THE SECRETARY SHALL TRANSMIT SUCH
COMPREHENSIVE PROGRAM PLAN TO THE PRESIDENT AND TO EACH HOUSE OF THE
CONGRESS. THE PLAN SHALL BE TRANSMITTED WITHIN 120 DAYS AFTER THE DATE
OF THE ENACTMENT OF THIS ACT.
TEST PROCEDURES AND DEFINITIVE PERFORMANCE CRITERIA "42 USC
5506."
SEC. 8. AS SOON AS FEASIBLE, AND UTILIZING DATA AVAILABLE FROM THE
DEMONSTRATION PROGRAMS UNDER SECTIONS 5 AND 6, THE SECRETARY, UTILIZING
THE SERVICES OF THE DIRECTOR OF THE NATIONAL BUREAU OF STANDARDS AND IN
CONSULTATION WITH THE ADMINISTRATOR AND THE DIRECTOR SHALL DETERMINE,
PRESCRIBE, AND PUBLISH IN THE FEDERAL REGISTER IN ACCORDANCE WITH THE
APPLICABLE PROVISIONS REGARDING RULEMAKING PRESCRIBED BY SECTION 553 OF
TITLE 5, UNITED STATES CODE--,
(1) DEFINITIVE PERFORMANCE CRITERIA FOR SOLAR HEATING AND
COMBINED SOLAR HEATING AND COOLING COMPONENTS AND SYSTEMS TO BE
USED IN RESIDENTIAL DWELLINGS, TAKING INTO ACCOUNT CLIMATIC
VARIATIONS EXISTING BETWEEN DIFFERENT GEOGRAPHIC AREAS;
(2) DEFINITIVE PERFORMANCE CRITERIA (RELATING TO SUITABILITY
FOR SOLAR HEATING AND FOR COMBINED SOLAR HEATING AND COOLING) FOR
SUCH DWELLINGS, TAKING INTO ACCOUNT CLIMATIC VARIATIONS EXISTING
BETWEEN DIFFERENT GEOGRAPHIC AREAS; AND
(3) PROCEDURES WHEREBY MANUFACTURERS OF SOLAR HEATING AND
COMBINED SOLAR HEATING AND COOLING COMPONENTS AND SYSTEMS SHALL
HAVE THEIR PRODUCTS TESTED IN ORDER TO PROVIDE CERTIFICATION THAT
SUCH PRODUCTS CONFORM TO THE PERFORMANCE CRITERIA ESTABLISHED
UNDER PARAGRAPH (1).
DEVELOPMENT AND DEMONSTRATION OF SOLAR HEATING AND COMBINED
SOLAR HEATING AND COOLING SYSTEMS FOR COMMERCIAL BUILDINGS "42 USC
5507."
SEC. 9. THE ADMINISTRATOR, IN CONSULTATION WITH THE SECRETARY, THE
DIRECTOR, THE ADMINISTRATOR OF GENERAL SERVICES, AND THE DIRECTOR OF THE
NATIONAL BUREAU OF STANDARDS AND CONCURRENTLY WITH THE CONDUCT OF THE
PROGRAMS UNDER SECTIONS 5 AND 6, SHALL ENTER INTO ARRANGEMENTS WITH
APPROPRIATE FEDERAL AGENCIES TO CARRY OUT SUCH PROJECTS AND ACTIVITIES
(INCLUDING DEMONSTRATION PROJECTS) WITH RESPECT TO APARTMENT BUILDINGS,
OFFICE BUILDINGS, FACTORIES, CROP-DRYING FACILITIES AND OTHER
AGRICULTURE STRUCTURES, PUBLIC BUILDINGS (INCLUDING SCHOOLS AND
COLLEGES), AND OTHER NON-RESIDENTIAL, COMMERCIAL, OR INDUSTRIAL
BUILDINGS, TAKING INTO ACCOUNT THE SPECIAL NEEDS OF AND INDIVIDUAL
DIFFERENCES IN SUCH BUILDINGS BASED UPON SIZE, FUNCTION, AND OTHER
RELEVANT FACTORS, AS MAY BE APPROPRIATE FOR THE EARLY DEVELOPMENT AND
DEMONSTRATION OF SOLAR HEATING AND COMBINED SOLAR HEATING AND COOLING
SYSTEMS SUITABLE AND EFFECTIVE FOR USE IN SUCH BUILDINGS.
SOLAR HEATING AND COOLING RESEARCH BY NATIONAL SCIENCE
FOUNDATION "42 USC 5508."
SEC. 10. (A) THE DIRECTOR SHALL CONDUCT A PROGRAM OF APPLIED
RESEARCH RELEVANT TO (1) THE IMPROVEMENT OF SOLAR HEATING COMPONENTS AND
SYSTEMS AND (2) THE DEVELOPMENT AND COMMERCIAL APPLICATION OF COMBINED
SOLAR HEATING AND COOLING COMPONENTS AND SYSTEMS AS COMTEMPLATED BY THE
PROGRAMS UNDER THIS ACT.
(B) THE DIRECTOR SHALL APPRISE THE SECRETARY AND THE ADMINISTRATOR ON
A CONTINUING BASIS OF THE RESULTS OF THE PROGRAMS BEING CONDUCTED IN
ACCORDANCE WITH SUBSECTION (A), AND THE SECRETARY AND THE ADMINISTRATOR
SHALL INSURE THAT SUCH RESULTS, WHERE APPROPRIATE, ARE INCORPORATED INTO
THE DEVELOPMENT AND DEMONSTRATION PROGRAMS ESTABLISHED BY THIS ACT.
COORDINATION, MONITORING, AND LIASON "42 USC 5509."
SEC. 11. (A) THE SECRETARY, UTILIZING THE SERVICES OF THE DIRECTOR
OF THE NATIONAL BUREAU OF STANDARDS AND IN COORDINATION WITH SUCH OTHER
GOVERNMENT AGENCIES AS MAY BE APPROPRIATE, SHALL--,
(1) MONITOR THE PERFORMANCE AND OPERATION OF SOLAR HEATING AND
COMBINED SOLAR HEATING AND COOLING SYSTEMS INSTALLED IN
RESIDENTIAL DWELLINGS UNDER THIS ACT;
(2) COLLECT AND EVALUATE DATA AND INFORMATION ON THE
PERFORMANCE AND OPERATION OF SOLAR HEATING AND COMBINED SOLAR
HEATING AND COOLING SYSTEMS INSTALLED IN RESIDENTIAL DWELLINGS
UNDER THIS ACT; AND
(3) FROM TIME TO TIME, CARRYING OUT SUCH STUDIES AND
INVESTIGATIONS AND TAKE SUCH OTHER ACTIONS, INCLUDING THE
SUBMISSION OF SPECIAL REPORTS TO THE CONGRESS WHEN APPROPRIATE, AS
MAY BE NECESSARY TO ASSURE THAT THE PROGRAMS FOR WHICH THE
SECRETARY IS RESPONSIBLE UNDER THIS ACT EFFECTIVELY CARRY OUT THE
POLICY OF THIS ACT.
(B) IN THE DEVELOPMENT OF THE PERFORMANCE CRITERIA AND TEST
PROCEDURES REQUIRED UNDER SECTIONS 5,6, AND 8, THE SECRETARY SHALL WORK
CLOSELY WITH THE APPROPRIATE SCIENTIFIC, TECHNICAL, AND PROFESSIONAL
SOCIETIES AND INDUSTRY REPRESENTATIVES TO INSURE THE BEST POSSIBLE USE
OF AVAILABLE EXPERTISE IN THIS AREA.
(C) THE SECRETARY SHALL ALSO MAINTAIN CONTINUING LIASION WITH THE
BUILDING INDUSTRY AND RELATED INDUSTRIES AND INTERESTS, AND WITH THE
SCIENTIFIC AND TECHNICAL COMMUNITY DURING AND AFTER THE PERIOD OF THE
PROGRAMS CARRIED OUT UNDER THIS ACT, IN ORDER TO ASSURE THAT THE
PROJECTED BENEFITS OF SUCH PROGRAMS ARE AND WILL CONTINUE TO BE
REALIZED.
DISSEMINATION OF INFORMATION AND OTHER ACTIONS TO PROMOTE
PRACTICAL USE OF SOLAR HEATING AND COOLING TECHNOLOGIES "42 USC
5510."
SEC. 12. (A) THE SECRETARY SHALL TAKE ALL POSSIBLE STEPS TO ASSURE
THAT FULL AND COMPLETE INFORMATION WITH RESPECT TO THE DEMONSTRATIONS
AND OTHER ACTIVITIES CONDUCTED UNDER THIS ACT IS MADE AVAILABLE TO
FEDERAL, STATE, AND LOCAL AUTHORITIES, THE BUILDING INDUSTRY AND RELATED
SEGMENTS OF THE ECONOMY, THE SCIENTIFIC AND TECHNICAL COMMUNITY, AND THE
PUBLIC AT LARGE, BOTH DURING AND AFTER THE CLOSE OF THE PROGRAMS UNDER
THIS ACT, WITH THE OBJECTIVE OF PROMOTING AND FACILITATING TO THE
MAXIMUM EXTENT FEASIBLE THE EARLY AND WIDESPREAD PRACTICAL USE OF SOLAR
ENERGY FOR THE HEATING AND COOLING OF BUILDINGS THROUGHOUT THE UNITED
STATES. IN ACCORDANCE WITH REGULATIONS PRESCRIBED UNDER SECTION 16 SUCH
INFORMATION SHALL BE DISSEMINATED ON A COORDINATED BASIS BY THE
SECRETARY, THE ADMINISTRATOR, THE DIRECTOR OF THE NATIONAL BUREAU OF
STANDARDS, THE DIRECTOR, THE COMMISSIONER OF THE PATENT OFFICE, AND
OTHER APPROPRIATE FEDERAL OFFICES AND AGENCIES.
(B) IN ADDITION, THE SECRETARY SHALL--,
(1) STUDY AND INVESTIGATE THE EFFECT OF BUILDING CODES, ZONING
ORDINANCES, TAX REGULATIONS, AND OTHER LAWS, CODES, ORDINANCES,
AND PRACTICES UPON THE PRACTICAL USE OF SOLAR ENERGY FOR THE
HEATING AND COOLING OF BUILDINGS;
(2) DETERMINE THE EXTENT TO WHICH LAWS, CODES, ORDINANCES, AND
PRACTICES SHOULD BE CHANGED TO PERMIT OR FACILITATE SUCH USE, AND
THE METHODS BY WHICH ANY SUCH CHANGES MAY BEST BE BROUGHT ABOUT;
AND
(3) STUDY THE NECESSITY OF A PROGRAM OF INCENTIVES TO
ACCELERATE THE COMMERCIAL APPLICATION OF SOLAR HEATING AND COOLING
TECHNOLOGY.
(C) (1) IN CARRYING OUT HIS FUNCTIONS UNDE SUBSECTIONS (A) AND (B)
THE SECRETARY, UTILIZING THE CAPABILITIES OF THE NATIONAL AERONAUTICS
AND SPACE ADMINISTRATION, THE DEPARTMENT OF COMMERCE, AND THE NATIONAL
SCIENCE FOUNDATION TO THE MAXIMUM EXTENT POSSIBLE, SHALL ESTABLISH AND
OPERATE A SOLAR HEATING AND COOLING INFORMATION DATA BANK (HEREINAFTER
IN THIS SUBSECTION REFERRED TO AS THE "BANK") FOR THE PURPOSE OF
COLLECTING, REVIEWING, PROCESSING, AND DISSEMINATING SOLAR HEATING AND
COOLING INFORMATION AND DATA IN A TIMELY AND ACCURATE MANNER IN SUPPORT
OF THE OBJECTIVES OF THIS ACT.
(2) INFORMATION AND DATA COMPILED IN THE BANK SHALL INCLUDE--,
(A) TECHNICAL INFORMATION (INCLUDING REPORTS, JOURNAL ARTICLES,
DISSERTIONS, MONOGRAPHS, AND PROJECT DESCRIPTIONS) ON SOLAR ENERGY
RESEARCH, DEVELOPMENT, AND APPLICATIONS;
(B) TECHNICAL INFORMATION ON THE DESIGN, CONSTRUCTION, AND
MAINTENANCE OF BUILDINGS COMPATIBLE WITH SOLAR HEATING AND COOLING
CONCEPTS; (C) PHYSICAL AND CHEMICAL PROPERTIES OF THE MATERIALS
REQUIRED FOR SOLAR HEATING AND COOLING;
(D) CLIMATIC CONDITIONS IN APPROPRIATE AREAS OF THE UNITED
STATES, INCLUDING THOSE AREAS WHERE THE DEMONSTRATIONS ARE TO BE
LOCATED; AND
(E) ENGINEERING PERFORMANCE OF DEVICES UTILIZED IN SOLAR
HEATING AND COOLING OR TO BE EMPLOYED IN THE DEMONSTRATIONS.
(3) IN ACCORDANCE WITH REGULATIONS PRESCRIBED UNDER SECTION 16, THE
SECRETARY SHALL PROVIDE RETRIEVAL AND DISSEMINATION SERVICES TO COVER
THE SOLAR HEATING AND COOLING INFORMATION DESCRIBED UNDER PARAGRAPH (2)
FOR--,
(A) FEDERAL, STATE, AND LOCAL GOVERNMENT ORGANIZATIONS THAT ARE
ACTIVE IN THE AREA OF ENERGY RESOURCES (AND THEIR CONTRACTORS);
(B) UNIVERSITIES, COLLEGES, AND OTHER NONPROFIT ORGANIZATIONS;
AND
(C) PRIVATE PERSONS, UPON REQUEST, IN APPROPRIATE CASES.
(4) IN CARRYING OUT HIS FUNCTIONS UNDER THIS SUBSECTION, THE
SECRETARY SHALL UTILIZE, WHEN FEASIBLE, THE EXISTING DATA BASE OF
SCIENTIFIC AND TECHNICAL INFORMATION IN FEDERAL AGENCIES, ADDING TO SUCH
DATA BASE ANY INFORMATION DESCRIBED IN PARAGRAPH (2) WHICH DOES NOT
ALREADY RESIDE IN SUCH BASE.
(D) EACH FEDERAL OFFICER AND AGENCY HAVING FUNCTIONS UNDER THIS ACT
SHALL INCLUDE IN HIS OR ITS ANNUAL REPORT TO THE PRESIDENT AND THE
CONGRESS A FULL AND COMPLETE DESCRIPTION OF HIS OR ITS ACTIVITIES
(CURRENT AND PROJECTED) UNDER THIS ACT, ALONG WITH HIS OR ITS
RECOMMENDATIONS FOR LEGISLATIVE, ADMINISTRATIVE, OR OTHER ACTION TO
IMPROVE THE PROGRAMS UNDER THIS ACT OR TO ACHIEVE THE OBJECTIVES OF THIS
ACT MORE PROMPTLY AND EFFECTIVELY. IN ADDITION, THE SECRETARY SHALL
SUBMIT ANNUALLY TO THE PRESIDENT AND THE CONGRESS A SPECIAL REPORT
SUMMARIZING IN APPROPRIATE DETAIL ALL OF THE ACTIVITIES (CURRENT AND
PROJECTED) OF THE VARIOUS FEDERAL OFFICERS AND AGENCIES HAVING FUNCTIONS
UNDER THIS ACT, WITH THE OBJECTIVE OF PRESENTING A COMPREHENSIVE OVERALL
VIEW OF SUCH PROGRAMS.
LIMITATIONS ON FEDERALLY ASSISTED OR FEDERALLY CONSTRUCTED
HOUSING "42 USC 5511."
SEC 13. (A) (1) IN DETERMINING THE MAXIMUM DOLLAR AMOUNT OF ANY
FEDERALLY ASSISTED MORTGAGE LOAN (AS DEFINED IN SUBSECTION (B)) OR THE
MAXIMUM PER UNIT OR OTHER COST OR FLOOR AREA LIMITATION OF ANY FEDERALLY
CONSTRUCTED HOUSING (AS DEFINED IN SUBSECTION (C)), WHERE THE LAW
ESTABLISHING THE PROGRAM UNDER WHICH THE LOAN IS MADE OR THE HOUSING IS
CONSTRUCTED SPECIFIES SUCH MAXIMUM PER UNIT OR OTHER COST ON FLOOR AREA
LIMITATION AND THE STRUCTURE INVOLVED IS FURNISHED WITH SOLAR HEATING OR
COMBINED SOLAR HEATING AND COOLING EQUIPMENT UNDER THE DEMONSTRATION
PROGRAM ESTABLISHED BY SECTION 5, 6, OR 9, THE MAXIMUM AMOUNT OR COST OF
FLOOR AREA LIMITATION SO SPECIFIED WHICH IS APPLICABLE TO SUCH STRUCTURE
SHALL BE DEEMED TO BE INCREASED BY THE AMOUNT BY WHICH (AS DETERMINED BY
THE SECRETARY OR THE SECRETARY OF DEFENSE, AS APPROPRIATE) THE PRICE OR
COST OR FLOOR AREA LIMITATION OF THE STRUCTURE WITH SUCH EQUIPMENT
REPLACED BY CONVENTIONAL HEATING EQUIPMENT OR CONVENTIONAL HEATING AND
COOLING EQUIPMENT (AS THE CASE MAY BE).
(2) IN ADDITION, IN THE CASE OF A FEDERALLY ASSISTED MORTGAGE LOAN,
THE COST EXCESS SPECIFIED IN SUBSECTION (A) SHALL BE FULLY TAKEN INTO
ACCOUNT IN DETERMINING THE VALUE OR COST OF THE STRUCTURE INVOLVED FOR
PURPOSES OF APPLYING ANY STATUTORY PROVISION SPECIFYING THE MAXIMUM
LOAN-TO-VALUE OR COST RATIO; EXCEPT THAT, IF THE LAW SPECIFIES
DIFFERENT RATES OF DOWNPAYMENT FOR SUCCESSIVE INCREMENTS OF SUCH VALUE
OR COST, THE LOWEST SUCH RATE SHALL APPLY TO THE ADDITIONAL COST
ATTRIBUTABLE TO THE SOLAR HEATING OR COMBINED SOLAR HEATING AND COOLING
EQUIPMENT, AND SUCH EQUIPMENT SHALL OTHERWISE BE EXCLUDED IN DETERMINING
THE TOTAL VALUE OR COST OF THE STRUCTURE.
(B) AS USED SUBSECTION (A), THE TERM "MORTGAGE LOAN" MEANS A LOAN
WHICH IS MADE TO FINANCE THE PURCHASE OR CONSTRUCTION OF A RESIDENCE OR
ANY OTHER BUILDING OR STRUCTURE; AND THE TERM "FEDERALLY ASSISTED
MORTGAGE LOAN" MEANS A MORTGAGE LOAN WHICH--,
(1) IS MADE IN WHOLE OR IN PART BY ANY LENDER THE DEPOSITS OR
ACCOUNTS OF WHICH ARE INSURED BY ANY AGENCY OF THE FEDERAL
GOVERNMENT, OR IS MADE IN WHOLE OR IN PART BY ANY LENDER WHICH IS
ITSELF REGULATED BY ANY AGENCY OF THE FEDERAL GOVERNMENT; OR
(2) IS MADE WHOLE OR IN PART, OR INSURED, GUARANTEED,
SUPPLEMENTED, OR ASSISTED IN ANY WAY, BY THE SECRETARY OR ANY
OTHER OFFICER OR AGENCY OR THE FEDERAL GOVERNMENT OR UNDER OR IN
CONNECTION WITH A HOUSING, URBAN DEVELOPMENT, OR RELATED PROGRAM
ADMINISTERED BY THE SECRETARY OR A HOUSING OR RELATED PROGRAM
ADMINISTERED BY ANY OTHER SUCH OFFECER OR AGENCY; OR
(3) IS ELIGIBLE FOR PURCHASE BY THE FEDERAL NATIONAL MORTGAGE
ASSOCIATION, THE GOVERNMENT NATIONAL MORTGAGE ASSOCIATION, OR THE
FEDERAL HOME LOAN MORTGAGE CORPORATION, OR FROM ANY FINANCIAL
INSTITUTION FROM WHICH IT COULD BE PURCHASED BY THE FEDERAL HOME
LOAN MORTGAGE CORPORATION; OR
(4) IS MADE IN WHOLE OR IN PART BY ANY "CREDITOR," AS DEFINED
IN SECTION 103 (F) OF THE CONSUMER CREDIT PROTECTION ACT OF 1968
(15 U.S.C. 1602 (F)), "82 STAT. 147." WHO MAKES OR INVESTS IN
RESIDENTIAL REAL ESTATE LOANS AGGREGATING MORE THAN $1,000,000 PER
YEAR.
(C) AS USED IN SUBSECTION (A), THE TERM "FEDERALLY CONSTRUCTED
HOUSING" MEANS (1) RESIDENTIAL OR MULTIFAMILY HOUSING WHICH IS
CONSTRUCTED BY AGENCIES OF THE FEDERAL GOVERNMENT TO PROVIDE DWELLING
ACCOMMODATIONS FOR PARTICULAR TYPES OR CLASSES OF PERSONS UNDER PROGRAMS
ADMINISTERED BY SUCH FEDERAL AGENCIES (INCLUDING ALL HOUSING CONSTRUCTED
BY THE DEPARTMENT OF DEFENSE TO PROVIDE DWELLING ACCOMMODATIONS FOR
PERSONNEL OF THE ARMED SERVICES OR FOR SUCH PERSONNEL AND THEIR
FAMILIES), AND (2) RESIDENTIAL OR MULTIFAMILY HOUSING WHICH IS
CONSTRUCTED BY AGENCIES OF STATE OR LOCAL GOVERNMENT, WITH FINANCIAL
ASSISTANCE IN ANY FORM FROM THE FEDERAL GOVERNMENT, TO PROVIDE DWELLING
ACCOMMODATIONS FOR PARTICULAR TYPES OR CLASSES OF PERSONS UNDER PROGRAMS
ADMINISTERED BY SUCH STATE OR LOCAL AGENCIES.
ENCOURAGEMENT AND PROTECTION OF SMALL BUSINESS "42 USC 5512."
SEC. 14. IN CARRYING OUT THEIR FUNCTIONS UNDER THIS ACT, ALL FEDERAL
OFFICERS AND AGENCIES SHALL TAKE STEPS TO ASSURE THAT SMALL BUSINESS
CONCERNS WILL HAVE REALISTIC AND ADEQUATE OPPORTUNITIES TO PARTICIPATE
IN THE PROGRAMS UNDER THIS ACT TO THE MAXIMUM EXTENT POSSIBLE.
PRIORITIES "42 USC 5513."
SEC. 15. THE SECRETARY SHALL SET PRIORITIES AS FAR AS POSSIBLE
CONSISTENT WITH THE INTENT AND OPERATION OF THIS ACT IN ACCORDANCE WITH
THE FOLLOWING CRITERIA:
(A) THE RESIDENTIAL DWELLINGS AND OTHER BUILDINGS WHICH WILL BE PART
OF THE DEMONSTRATION PROGRAMS REFERRED TO IN SECTION 5, 6, AND 9 SHALL
BE LOCATED IN A SUFFICIENT NUMBER OF DIFFERENT GEOGRAPHIC AREAS IN THE
UNITED STATES TO ASSURE A REALISTIC AND EFFECTIVE DEMONSTRATION OF THE
SOLAR HEATING SYSTEMS AND COMBINED SOLAR HEATING AND COOLING SYSTEMS
INVOLVED, AND OF THE DWELLINGS AND OTHER BUILDINGS THEMSELVES, IN BOTH
RURAL AND URBAN LOCATIONS AND UNDER CLIMATIC CONDITIONS WHICH VARY AS
MUCH AS POSSIBLE.
(B) CONSIDERATION SHALL BE GIVEN TO PROJECTED COSTS OF COMMERCIAL
PRODUCTION AND MAINTENANCE OF THE SOLAR HEATING SYSTEMS AND COMBINED
SOLAR HEATING AND COOLING SYSTEMS UTILIZED IN THE DEMONSTRATION
PROGRAMS.
(C) ENCOURAGEMENT SHOULD BE GIVEN IN THE CONDUCT OF PROGRAMS UNDER
THIS ACT TO THOSE PROJECTS IN WHICH FUNDS, APPROPRIATED BY ANY STATE OR
POLITICAL SUBDIVISION THEREOF FOR THE PURPOSE OF SHARING COSTS WITH THE
FEDERAL GOVERNMENT FOR THE PURCHASE AND INSTALLATION OF SOLAR HEATING OR
COMBINED SOLAR HEATING AND COOLING COMPONENTS AND SYSTEMS, ARE COMMITTED
BEFORE OR AFTER THE DATE OF THE ENACTMENT OF THIS ACT.
REGULATIONS "42 USC 5514."
SEC. 16. THE ADMINISTRATOR AND THE SECRETARY IN CONSULTATION WITH
THE DIRECTOR OF THE NATIONAL BUREAU OF STANDARDS, THE DIRECTOR, THE
ADMINISTRATOR OF THE GENERAL SERVICES ADMINISTRATION, THE SECRETARY OF
DEFENSE, AND OTHER APPROPRIATE OFFICERS AND AGENCIES, SHALL PRESCRIBE
SUCH REGULATIONS AS MAY BE NECESSARY OR APPROPRIATE TO CARRY OUT THIS
ACT PROMPTLY AND EFFICIENTLY. EACH SUCH OFFICER OR AGENCY, IN
CONSULTATION WITH THE ADMINISTRATOR AND THE SECRETARY, MAY PRESCRIBE
SUCH REGULATIONS AS MAY BE NECESSARY OR APPROPRIATE TO CARRY OUT HIS OR
ITS PARTICULAR FUNCTIONS UNDER THIS ACT PROMPTLY AND EFFICIENTLY.
USE OF PUBLICLY ASSISTED HOUSING "42 USC 5515."
SEC. 17. THE SECRETARY SHALL MAKE APPROPRIATE USE OF PUBLICLY
ASSISTED HOUSING AND PARTICULARLY LOW-RENT HOUSING ASSISTED UNDER THE
UNITED STATES HOUSING ACT OF 1937 "50 STAT. 888, 42 USC 1430." IN
DEMONSTRATING SOLAR HEATING SYSTEMS AND COMBINED SOLAR HEATING AND
COOLING SYSTEMS UNDER THIS ACT.
TRANSFER OF FUNCTIONS "42 USC 5516."
SEC. 18. WITHIN SIXTY DAYS AFTER THE EFFECTIVE DATE OF THE LAW
CREATING THE ENERGY RESEARCH AND DEVELOPMENT ADMINISTRATION OR ANY OTHER
LAW CREATING A PERMANENT FEDERAL ORGANIZATION OR AGENCY HAVING
JURISDICTION OVER THE ENERGY RESEARCH AND DEVELOPMENT FUNCTIONS OF THE
UNITED STATES (OR WITHIN SIXTY DAYS AFTER THE ENACTMENT OF THIS ACT IF
THE EFFECTIVE DATE OF SUCH LAW OCCURS PRIOR TO THE ENACTMENT OF THIS
ACT), THE ENERGY RESEARCH AND DEVELOPMENT FUNCTIONS VESTED IN THE
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION AND THE NATIONAL SCIENCE
FOUNDATION UNDER THIS ACT AND ANY FUNDS WHICH MAY HAVE BEEN APPROPRIATED
PURSUANT TO SECTION 19 OF THIS ACT, TO THE EXTENT NECESSARY OR
APPROPRIATE, MAY, IN ACCORDANCE WITH REGULATIONS PRESCRIBED BY THE
OFFICE OF MANAGEMENT AND BUDGET, BE TRANSFERRED TO AND VESTED IN THE
ENERGY RESEARCH AND DEVELOPMENT ADMINISTRATION OR SUCH OTHER
ORGANIZATION OR AGENCY.
AUTHORIZATION OF APPROPRIATIONS "42 USC 5517."
SEC. 19. (A) THERE IS HEREBY AUTHORIZED TO BE APPROPRIATED TO THE
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION FOR THE FISCAL YEAR ENDING
JUNE 30, 1975, $5,000,000, TO REMAIN AVAILABLE UNTIL EXPENDED, TO CARRY
OUT THE FUNCTIONS VESTED IN THE ADMINISTRATOR BY THIS ACT.
(B) THERE IS HEREBY AUTHORIZED TO BE APPROPRIATED TO THE DEPARTMENT
OF HOUSING AND URBAN DEVELOPMENT FOR THE FISCAL YEAR ENDING JUNE 30,
1975, $5,000,000, TO REMAIN AVAILABLE UNTIL EXPENDED. ANY SUMS SO
APPROPRIATED SHALL BE AVAILABLE (1) TO CARRY OUT THE FUNCTIONS VESTED IN
THE SECRETARY OF HOUSING AND URBAN DEVELOPMENT BY THIS ACT, AND (2) FOR
TRANSFER TO THE DEPARTMENT OF DEFENSE, THE NATIONAL BUREAU OF STANDARDS,
AND THE GENERAL SERVICES ADMINISTRATION TO ENABLE THEM TO CARRY OUT
THEIR RESPECTIVE FUNCTIONS UNDER THIS ACT.
(C) THERE IS HEREBY AUTHORIZED TO BE APPROPRIATED FOR THE FISCAL
YEARS ENDING JUNE 30, 1976, 1977, 1978, AND 1979, $50,000,000 IN THE
AGGREGATE TO CARRY OUT THE PROGRAMS ESTABLISHED BY THIS ACT.
LEGISLATIVE HISTORY:
HOUSE REPORTS: NO. 93 - 769 (COMM. ON SCIENCE AND ASTRONAUTICS) AND
NO. 93 - 1278 (COMM. OF CONFERENCE).
SENATE REPORTS: NO 93 - 734 (COMM. ON AERONAUTICAL AND SPACE
SCIENCES), NO. 93 - 847 (COMM. ON BANKING, HOUSING AND URBAN AFFAIRS
AND COMM. ON LABOR AND PUBLIC WELARE) AND NO. 93 - 1083 (COMM. OF
CONFERENCE).
CONGRESSIONAL RECORD, VOL. 120 (1974):
FEB. 13, CONSIDERED AND PASSED HOUSE.
MAY 21, CONSIDERED AND PASSED SENATE, AMENDED.
AUG. 12, SENATE AGREED TO CONFERENCE REPORT.
AUG. 21, HOUSE AGREED TO CONFERENCE REPORT.
PUBLIC LAW 93-408, 88 STAT. 1066, YOUTH CONSERVATION CORPS ACT OF
1970, AMENDMENTS
BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE
UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED. THAT THE ACT OF AUGUST
13, 1970 (84 STAT. 794) "86 STAT.1319, 42 USC PREC. 2711 NOTE." IS
AMENDED TO READ AS FOLLOWS:
"POLICY AND PURPOSE "16 USC 1701."
"SECTION 1. THE CONGRESS FINDS THAT THE YOUTH CONSERVATION CORPS HAS
DEMONSTRATED A HIGH DEGREE OF SUCCESS AS A PILOT PROGRAM WHEREIN
AMERICAN YOUTH, REPRESENTING ALL SEGMENTS OF SOCIETY, HAVE BENEFITED BY
GAINFUL EMPLOYMENT IN THE HEALTHFUL OUTDOOR ATMOSPHERE OF THE NATIONAL
PARK SYSTEM, THE NATIONAL FOREST SYSTEM, OTHER PUBLIC LAND AND WATER
AREAS OF THE UNITED STATES AND BY THEIR EMPLOYMENT HAVE DEVELOPED,
ENHANCED, AND MAINTAINED THE NATURAL RESOURCES OF THE UNITED STATES, AND
WHEREAS IN SO DOING THE YOUTH HAVE GAINED AN UNDERSTANDING AND
APPRECIATION OF THE NATION'S ENVIRONMENT AND HERITAGE EQUAL TO ONE FULL
ACADEMIC YEAR OF STUDY, IT IS ACCORDINGLY THE PURPOSE OF THIS ACT TO
EXPAND AND MAKE PERMANENT THE YOUTH CONSERVATION CORPS AND THEREBY
FURTHER THE DEVELOPMENT AND MAINTENANCE OF THE NATURAL RESOURCES BY
AMERICA'S YOUTH, AND IN SO DOING TO PREPARE THEM FOR THE ULTIMATE
RESPONSIBILITY OF MAINTAINING AND MANAGING THESE RESOURCES FOR THE
AMERICAN PEOPLE.
"YOUTH CONSERVATION CORPS "16 USC 1702."
"SEC. 2. (A) TO CARRY OUT THE PURPOSES OF THIS ACT, THERE IS
ESTABLISHED IN THE DEPARTMENT OF THE INTERIOR AND THE DEPARTMENT OF
AGRICULTURE A YOUTH CONSERVATION CORPS (HEREINAFTER REFERRED TO AS THE
'CORPS'). THE CORPS SHALL CONSIST OF YOUNG MEN AND WOMEN WHO ARE
PERMANENT RESIDENTS OF THE UNITED STATES, ITS TERRITORIES, POSSESSIONS,
TRUST TERRITORIES, OR COMMONWEALTH OF PUERTO RICO WHO HAVE ATTAINED AGE
FIFTEEN BUT HAVE NOT ATTAINED AGE NINETEEN, AND WHOM THE SECRETARY OF
THE INTERIOR OR THE SECRETARY OF AGRICULTURE MAY EMPLOY WITHOUT REGARD
TO THE CIVIL SERVICE OR CLASSIFICATION LAWS, RULES, OR REGULATIONS, FOR
THE PURPOSE OF DEVELOPING, PRESERVING, OR MAINTAINING THE LANDS AND
WATERS OF THE UNITED STATES.
"(B) THE CORPS SHALL BE OPEN TO YOUTH FROM ALL PARTS OF THE COUNTRY
OF BOTH SEXES AND YOUTH OF ALL SOCIAL, ECONOMIC, AND RACIAL
CLASSIFICATIONS WITH ALL CORPS MEMBERS RECEIVING COMPENSATION CONSISTENT
WITH WORK ACCOMPLISHED, AND WITH NO PERSON BEING EMPLOYED AS A MEMBER OF
THE CORPS FOR A TERM IN EXCESS OF NINETY DAYS DURING ANY SINGLE YEAR.
"SECRETARIAL DUTIES AND FUNCTIONS "16 USC 1703."
"SEC. 3. (A) IN CARRYING OUT THIS ACT, THE SECRETARY OF THE INTERIOR
AND THE SECRETARY OF AGRICULTURE SHALL--,
"(1) DETERMINE THE AREAS UNDER THEIR ADMINISTRATIVE
JURISDICTIONS WHICH ARE APPROPRIATE FOR CARRYING OUT THE
PROGRAMS USING EMPLOYEES OF THE CORPS;
"(2) DETERMINE WITH OTHER FEDERAL AGENCIES THE AREAS UNDER THE
ADMINISTRATIVE JURISDICTION OF THESE AGENCIES WHICH ARE
APPROPRIATE FOR CARRYING OUT PROGRAMS USING MEMBERS OF THE CORPS,
AND DETERMINE AND SELECT APPROPRIATE WORK AND EDUCATION PROGRAMS
AND PROJECTS FOR PARTICIPATION BY MEMBERS OF THE CORPS;
"(3) DETERMINE THE RATES OF PAY, HOURS, AND OTHER CONDITIONS OF
EMPLOYMENT IN THE CORPS, EXCEPT THAT ALL MEMBERS OF THE CORPS
SHALL NOT BE DEEMED TO BE FEDERAL EMPLOYEES OTHER THAN FOR THE
PURPOSE OF CHAPTER 171 OF TITLE 28, UNITED STATES CODE, AND
CHAPTER 81 OF TITLE 5, UNITED STATES CODE. "62 STAT. 982; 80
STAT. 306, 28 USC 2671."
"(4) PROVIDE FOR SUCH TRANSPORTATION, LODGING, SUBSISTENCE, AND
OTHER SERVICES AND EQUIPMENT AS THEY MAY DEEM NECESSARY OR
APPROPRIATE FOR THE NEEDS OF MEMBERS OF THE CORPS IN THEIR DUTIES;
"80 STAT. 531; 82 STAT. 98, 5 USC 8101."
"(5) PROMULGATE REGULATION TO INSURE THE SAFETY, HEALTH, AND
WELFARE OF THE CORPS MEMBERS; AND
"(6) PROVIDE TO THE EXTENT POSSIBLE, THAT PERMANENT OR
SEMI-PERMANENT FACILITIES USED AS CORPS CAMPS BE MADE AVAILABLE TO
LOCAL SCHOOLS, SCHOOL DISTIRCTS, STATE JUNIOR COLLEGES AND
UNIVERSITIES, AND OTHER EDUCATION INSTITUTIONS FOR USE AS
ENVIRONMENTAL/ ECOLOGICAL EDUCATION CAMPS DURING PERIODS OF NONUSE
BY THE COPRS PROGRAM.
COSTS FOR OPERATIONS MAINTENANCE, AND STAFFING OF CORPS CAMP FACILITIES
DURING PERIODS OF USE BY NON-CORPS PROGRAMS AS WELL AS ANY LIABILITY FOR
PERSONAL INJURY OR PROPERTY DAMAGE STEMMING FROM SUCH USE SHALL BE THE
RESPONSIBILITY OF THE ENTITY OR ORGANIZATION USING THE FACILITY AND
SHALL NOT BE A RESPONSIBILITY OF THE SECRETARIES OR THE CORPS.
"(B) EXISTING BUT UNOCCUPIED FEDERAL FACILITIES AND SURPLUS OR UNUSED
EQUIPMENT (OR BOTH), OF ALL TYPESINCLUDING MILITARY FACILITIES AND
EQUIPMENT, SHALL BE UTILIZED FOR THE PURPOSES OF THE CORPS, WHERE
APPROPRIATE AND WITH THE APPROVAL OF THE FEDERAL AGENCY INVOLVED. TO
MINIMIZE TRANSPORTATION COSTS, CORPS MEMBERS SHALL BE EMPLOYED ON
CONSERVATION PROJECTS AS NEAR TO THEIR PLACES OF RESIDENCE AS IS
FEASIBLE.
"(C) THE SECRETARY OF THE INTERIOR AND THE SECRETARY OF AGRICULTURE
MAY CONTRACT WITH ANY PUBLIC AGENCY OR ORGANIZATION OR ANY PRIVATE
NONPROFIT AGENCY OR ORGANIZATION WHICH HAS BEEN IN EXISTENCE FOR AT
LEAST FIVE YEARS FOR THE OPERATION OF ANY YOUTH CONSERVATION CORPS
PROJECT.
"GRANT PROGRAM FOR STATE PROJECTS "16 USC 1704."
"SEC. 4. (A) THE SECRETARY OF THE INTERIOR AND THE SECRETARY OF
AGRICULTURE SHALL JOINTLY ESTABLISH A PROGRAM UNDER WHICH GRANTS SHALL
BE MADE TO STATES TO ASSIST THEM IN MEETING THE COST OF PROJECTS FOR THE
EMPLOYMENT OF YOUNG MEN AND WOMEN TO DEVELOP, PRESERVE, AND MAINTAIN
NON-FEDERAL PUBLIC LANDS AND WATERS WITHIN THE STATES. FOR PURPOSES OF
THIS SECTION, THE TERM 'STATES' INCLUDES THE DISTRICT OF COLUMBIA, THE
COMMONWEALTH OF PUERTO RICO, THE VIRGIN ISLANDS, GUAM, THE TRUST
TERRITORY OF THE PACIFIC ISLANDS, AND AMERICAN SAMOA.
"(B) (1) NO GRANT MAY BE MADE UNDER THIS SECTION UNLESS AN
APPLICATION THEREFOR HAS BEEN SUBMITTED TO, AND APPROVED BY, THE
SECRETARY OF THE INTERIOR AND THE SECRETARY OF AGRICULTURE. SUCH
APPLICATION SHALL BE IN SUCH FORM, AND SUBMITTED IN SUCH MANNER, AS THE
SECRETARIES SHALL JOINTLY BY REGULATION PRESCRIBE, AND SHALL CONTAIN--,
"(A) ASSURANCES SATISFACTORY TO THE SECRETARIES THAT
INDIVIDUALS EMPLOYED UNDER THE PROJECT FOR WHICH THE APPLICATION
IS SUBMITTED SHALL (I) HAVE ATTAINED THE AGE OF FIFTEEN BUT NOT
ATTAINED THE AGE OF NINETEEN, (II) BE PERMANENT RESIDENTS OF THE
UNITED STATES OR ITS TERRITORIES, POSSESSIONS, OR THE TRUST
TERRITORY OF THE PACIFIC ISLANDS, (III) BE EMPLOYED WITHOUT REGARD
TO THE PERSONNEL LAWS, RULES, AND REGULATIONS APPLICABLE TO
FULL-TIME EMPLOYEES OF THE APPLICANT, (IV) BE EMPLOYED FOR A
PERIOD OF NOT MORE THAN NINETY DAYS IN ANY CALENDAR YEAR, AND (V)
BE EMPLOYED WITHOUT REGARD TO THEIR SEX OR SOCIAL, ECONOMIC, OR
RACIAL CLASSIFICATION; AND
"(B) SUCH OTHER INFORMATION AS THE SECRETARIES MAY JOINTLY BY
REGULATION PRESCRIBE.
"(2) THE SECRETARIES MAY APPROVE APPLICATIONS WHICH THEY DETERMINE
(A) TO MEET THE REQUIREMENTS OF PARAGRAPH (1), AND (B) ARE FOR PROJECTS
WHICH WILL FURTHER THE DEVELOPMENT, PRESERVATION, OR MAINTENANCE OF
NON-FEDERAL PUBLIC LANDS OR WATERS WITHIN THE JURISDICTION OF THE
APPLICANT.
"(C) (1) THE AMOUNT OF ANY GRANT UNDER THIS SECTION SHALL BE
DETERMINED JOINTLY BY THE SECRETARIES, EXCEPT THAT NO GRANT FOR ANY
PROJECT MAY EXCEED 80 PER CENTUM OF THE COST (AS DETERMINED BY THE
SECRETARIES) OF SUCH PROJECT.
"(2) PAYMENTS UNDER GRANTS UNDER THIS SECTION MAY BE MADE IN ADVANCE
OR BY WAY OF REIMBURSEMENT AND AT SUCH INTERVALS AND ON SUCH CONDITIONS
AS THE SECRETARIES FIND NECESSARY.
"(D) THIRTY PER CENTUM OF THE SUMS APPROPRIATED UNDER SECTION 6 FOR
ANY FISCAL YEAR SHALL BE MADE AVAILABLE FOR GRANTS UNDER THIS SECTION
FOR SUCH FISCAL YEAR.
"SECRETARIAL REPORTS "16 USC 1705."
"SEC. 5. THE SECRETARY OF THE INTERIOR AND SECRETARY OF AGRICULTURE
SHALL ANNUALLY PREPARE A JOINT REPORT DETAILING THE ACTIVITIES CARRIED
OUT UNDER THIS ACT AND PROVIDING RECOMMENDATIONS. EACH REPORT FOR A
PROGRAM YEAR SHALL BE SUBMITTED CONCURRENTLY TO THE PRESIDENT AND THE
CONGRESS NOT LATER THAN APRIL 1 FOLLOWING THE CLOSE OF THAT PROGRAM
YEAR.
"AUTHORIZATION OF APPROPRIATIONS "16 USC 1706."
"SEC. 6. THERE ARE AUTHORIZED TO BE APPROPRIATED AMOUNTS NOT TO
EXCEED $60,000,000 FOR EACH FISCAL YEAR, WHICH AMOUNTS SHALL BE MADE
AVAILABLE TO THE SECRETARY OF THE INTERIOR AND THE SECRETARY OF
AGRICULTURE TO CARRY OUT THE PURPOSES OF THIS ACT. NOTWITHSTANDING ANY
OTHER PROVISION OF LAW, FUNDS APPROPRIATED FOR ANY FISCAL YEAR TO CARRY
OUT THIS ACT SHALL REMAIN AVAILABLE FOR OBLIGATION AND EXPENDITURE UNTIL
THE END OF THE FISCAL YEAR FOLLOWING THE FISCAL YEAR FOR WHICH
APPROPRIATED.".
LEGISLATIVE HISTORY:
HOUSE REPORT NO. 93 - 1223 ACCOMPANYING H.R. 14897 (COMM. ON
EDUCATION AND LABOR).
SENATE REPORT NO. 93 - 426 (COMM. ON INTERIOR AND UNSULAR
AFFAIRS).
CONGRESSIONAL RECORD:
VOL. 119 (1973): OCT. 8, CONSIDERED AND PASSED SENATE.
VOL. 120 (1974): AUG. 19, CONSIDERED AND PASSED HOUSE,
AMENDED, IN LIEU OF H.R. 14897.
AUG. 21, SENATE CONCURRED IN HOUSE AMENDMENT.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS:
VOL. 10, NO. 36: SEPT. 3, PRESIDENTIAL STATEMENT.
PUBLIC LAW 93-407, 88 STAT. 1036
PAYABLE TO RETIRED
TEACHERS IN THE DISTRICT OF
COLUMBIA; TO ESTABLISH AN EQUITABLE TAX ON REAL
PROPERTY
IN THE DISTRICT OF
COLUMBIA; TO PROVIDE FOR ADDITIONAL REVENUE FOR THE
DISTRICT OF COLUMBIA; AND
FOR OTHER PURPOSES.
BE IT ENACTED BY THE SENATE AND HOUSEOF REPRESENTATIVES OF THE UNITED
STATES OF AMERICA IN CONGRESS ASSEMBLED,
SEC. 101. (A) THE DISTRICT OF COLUMBIA POLICE AND FIREMEN'S SALARY
ACT OF 1958 (D.C. CODE, SECS. 4 - 823 -- 4 - 837 IS AMENDED AS FOLLOWS:
(1) THE SALARY SCHEDULE IN SECTION 101 (A) OF THAT ACT (D.C. CODE,
SEC. 4 - 823 (A)) "86 STAT. 634." IS AMENDED TO READ AS FOLLOWS:
(SALARY SCHEDULE OMITTED 88 STAT. 1036)
(2) THE SECOND SENTENCE OF SECTION 202 OF THAT ACT (D.C. CODE, SEC.
4 - 825) "86 STAT. 636." IS AMENDED TO READ AS FOLLOWS: "THE ADDITIONAL
COMPENSATION AUTHORIZED BY THIS SECTION SHALL BE PAID TO AN OFFICER OR
MEMBER IN THE SAME MANNER AS HE IS PAID BASIC COMPENSATION TO WHICH HE
IS ENTITLED, EXCEPT THAT WHEN SUCH AN OFFICER OR MEMBER CEASES TO BE IN
SUCH AN ASSIGNMENT, THE LOSS OF SUCH ADDITIONAL COMPENSATION SHALL NOT
CONSTITUTE AN ADVERSE ACTION FOR THE PURPOSES OF SECTION 7511 OF TITLE 5
OF THE UNITED STATES CODE.". //80 STAT. 528.//
(3) SECTION 202 OF THAT ACT (D.C. CODE, SEC. 4 - 825) IS FURTHER
AMENDED BY STRIKING OUT "$2100" AND INSERTING IN LIEU THEREOF "$2270".
(4) SECTION 301 OF THAT ACT (D.C. CODE, SEC. 4 - 827) "72 STAT.
483." IS AMENDED BY (A) STRIKING OUT "ALL" AND INSERTING IN LIEU THEREOF
"(A) EXCEPT AS PROVIDED IN SUBSECTION (B), ALL", AND (B) BY ADDING AT
THE END THEREOF THE FOLLOWING:
"(B) ANY OFFICER OR MEMBER OF THE METROPOLITAN POLICE FORCE, THE FIRE
DEPARTMENT OF THE DISTRICT OF COLUMBIA, THE EXECUTIVE PROTECTIVE
SERVICE, OR THE UNITED STATES PARK POLICE FORCE WHO SEPARATES FROM THAT
FORCE, DEPARTMENT, OR SERVICE, AND WHO IS SUBSEQUENTLY REAPPOINTED TO
SUCH FORCE, DEPARTMENT, OR SERVICE WITHIN THREE YEARS AFTER THE DATE OF
SUCH SEPARATION SHALL RECEIVE ANY SCHEDULED RATE OF BASIC COMPENSATION
PROVIDED IN SALARY CLASS 1 OF THE SALARY SCHEDULE IN SECTION 101 (A)
//ANTE, P. 1036.// WHICH DOES NOT EXCEED THE SCHEDULED RATE OF BASIC
COMPENSATION BEING PAID AT THE TIME OF SUCH REAPPOINTMENT FOR THE CLASS
AND SERVICE STEP HE HAD ATTAINED AT THE TIME OF HIS SEPARATION. FOR
PURPOSES OF THIS SUBSECTION, NO ADDITIONAL COMPENSATION AUTHORIZED BY
THIS ACT SHALL BE USED IN DETERMINING SERVICE STEP PLACEMENT.".
(5) SECTION 302 OF THAT ACT (D.C. CODE, SEC. 4 - 828) "86 STAT.
636." IS AMENDED TO READ AS FOLLOWS: AN OFFICER OR MEMBER DESCRIBED IN
PARAGRAPH (1) (B) SHALL RECEIVE SUCH COMPENSATION UNTIL THE POSITION OF
DOG HANDLER IS DETERMINED UNDER SECTION (A) NOT TO BE INCLUDED IN SALARY
CLASS 4 AS A TECHNICIAN'S POSITION OR UNTIL HE NO LONGER PERFORMS THE
DUTY OF DOG HANDLER, WHICHEVER FIRST OCCURS.".
(6) SECTION 302 OF THAT ACT (D.C. CODE, SEC. 4 - 828 IS FURTHER
AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING:
"(E) WHENEVER ANY OFFICER OR MEMBER RECEIVING ADDITIONAL COMPENSATION
AUTHORIZED BY SUBSECTION (B) OR (C) IS NO LONGER ENTITLED TO RECEIVE
SUCH ADDITIONAL COMPENSATION, WITHOUT A CHANGE IN SALARY CLASS, HE SHALL
RECEIVE, IRRESPECTIVE OF ANY SUBSEQUENT SALARY SCHEDULE OR SERVICE STEP
ADJUSTMENT AUTHORIZED BY THIS ACT, BASIC COMPENSATION EQUAL TO THE SUM
OF HIS EXISTING SCHEDULED RATE OF BASIC COMPENSATION AND THE AMOUNT OF
SUCH ADDITIONAL COMPENSATION UNTIL HIS SCHEDULE RATE OF BASIC
COMPENSATION EQUALS OR EXCEEDS SUCH SUM.
"(F) THE LOSS OF THE ADDITIONAL COMPENSATION AUTHORIZED BY SUBSECTION
(B) OR (C) SHALL NOT CONSTITUTE AN ADVERSE ACTION FOR THE PURPOSES OF
SECTION 7511 OF TITLE 5 OF THE UNITED STATES CODE." "80 STAT. 528."
(7) SECTION 302 OF THAT ACT (D.C. CODE, SEC. 4 - 828) IS FURTHER
AMENDED (1) BY STRIKING OUT "$680" IN SUBSECTION (A) THEREOF AND
INSERTING IN LIEU THEREOF "$735", AND (2) BY STRIKING OUT "$500" EACH
TIME IT APPEARS IN SUBSECTION (C) THEREOF AND INSERTING IN LIEU THEREOF
"$540".
(8) SECTION 401 (A) (2) OF THAT ACT (D.C. CODE, 4 - 832(A) (2)) "86
STAT. 638." IS AMENDED TO READ AS FOLLOWS:
"(2) FOR PURPOSE OF PARAGRAPH (1), CONTINUOUS SERVICE AS AN OFFICER
OR MEMBER INCLUDES ONLY THOSE PERIODS OF HIS SERVICE DETERMINED TO HAVE
BEEN SATISFACTORY SERVICE AND ANY PERIOD OF HIS SERVICE IN THE ARMED
FORCES OF THE UNITED STATES OTHER THAN ANY PERIOD OF SUCH SERVICE (A)
DETERMINED NOT TO HAVE BEEN SATISFACTORY SERVICE, (B) RENDERED BEFORE
APPOINTMENT AS AN OFFICER OR MEMBER, OR (C) RENDERED AFTER RESIGNATION
AS AN OFFICER OR MEMBER.".
(9) THE SECOND SENTENCE OF SECTION 401 (C) OF THAT ACT (D.C. CODE,
SEC. 4 - 832(C)) IS AMENDED TO READ AS FOLLOWS: "FOR PURPOSES OF THIS
SUBSECTION, IN COMPUTING A DEPUTY CHIEF'S CONTINUOUS SERVICE ON THE
POLICE FORCE OR FIRE DEPARTMENT, THERE SHALL BE INCLUDED ONLY THOSE
PERIODS OF HIS SERVICE DETERMINED TO HAVE BEEN SATISFACTORY SERVICE AND
ANY PERIOD OF HIS SERVICE IN THE ARMED FORCES OF THE UNITED STATES OTHER
THAN ANY PERIOD OF SUCH SERVICE--,
"(1) DETERMINED NOT TO HAVE BEEN SATISFACTORY SERVICE,
"(2) RENDERED BEFORE APPOINTMENT AS AN OFFICER OR MEMBER, OR
"(3) RENDERED AFTER RESIGNATION AS AN OFFICER OR MEMBER.".
(B) EACH OFFICER OR MEMBER WHO IMMEDIATELY PRIOR TO THE EFFECTIVE
DATE OF THE AMENDMENT MADE BY PARAGRAPH (1) OF SUBSECTION (A) WAS
ASSIGNED TO SERVICE STEP 1, SERVICE 2, OR SERVICE STEP 3 OF SALARY CLASS
2 SHALL BE PLACED IN AND RECEIVE BASIC COMPENSATION IN SERVICE STEP 4 OF
SALARY CLASS 2. "D.C. CODE 4 - 823 NOTE."
SEC. 102. THE SECOND SECTION OF THE ACT APPROVED OCTOBER 21, 1951
(D.C. CODE, SEC. 4 - 808) "65 STAT. 607; 72 STAT. 378." IS AMENDED BY
STRIKING OUT "THE 22D DAY OF FEBRUARY", "THE 30TH DAY OF MAY", AND "THE
11TH DAY OF NOVEMBER", AND INSERTING IN LIEU THEREOF "THE THIRD MONDAY
IN FEBRUARY", "THE LAST MONDAY IN MAY", "THE SECOND MONDAY IN OCTOBER",
AND "THE FOURTH MONDAY IN OCTOBER".
SEC. 103. (A) EXCEPT AS PROVIDED IN SUBSECTIONS (B) AND (C), THE
AMENDMENTS MADE BY THIS TITLE AND SUBSECTION (B) "D.C. CODE 4 - 823
NOTE." OF THE FIRST SECTION SHALL TAKE EFFECT ON AND AFTER THE FIRST DAY
OF THE FIRST PAY PERIOD BEGINNING ON OR AFTER JULY 1, 1974.
(B) THE AMENDMENT MADE BY PARAGRAPH (6) OF SECTION 101 SHALL TAKE
EFFECT ON AND AFTER THE FIRST DAY OF THE FIRST PAY PERIOD BEGINNING ON
OR AFTER JANUARY 1, 1974.
(C) THE AMENDMENTS MADE BY PARAGRAPHS (8) AND (9) OF SECTION 101
SHALL TAKE EFFECT ON AND AFTER THE FIRST DAY OF THE FIRST PAY PERIOD
BEGINNING ON OR AFTER MAY 1, 1972.
SEC. 104. (A) RETROACTIVE COMPENSATION OR SALARY SHALL BE PAID BY
REASON OF THE AMENDMENTS MADE BY THIS TITLE ONLY IN THE CASE OF AN
INDIVIDUAL IN THE SERVICE OF THE DISTRICT OF COLUMBIA GOVERNMENT OR OF
THE UNITED STATES (INCLUDING SERVICE IN THE ARMED FORCES OF THE UNITED
STATES) ON THE DATE OF ENACTMENT OF THIS ACT. "D.C. CODE 4 - 832 NOTE."
EXCEPT THAT SUCH RETROACTIVE COMPENSATION OR SALARY SHALL BE PAID (1) TO
AN OFFICER OR MEMBER OF THE METROPOLITAN POLICE FORCE, THE FIRE
DEPARTMENT OF THE DISTRICT OF COLUMBIA, THE UNITED STATES PARK POLICE
FORCE, OR THE EXECUTIVE PROTECTIVE SERVICE WHO RETIRED DURING THE PERIOD
BEGINNING ON THE FIRST DAY OF THE FIRST PAY PERIODWHICH BEGINS ON OR
AFTER JULY 1, 1974, AND ENDING ON THE DATE OF ENACTMENT OF THIS ACT FOR
SERVICES RENDERED DURING SUCH PERIOD, AND (2) IN ACCORDANCE WITH THE
PROVISIONS OF SUBCHAPTER 8 OF CHAPTER 55 OF TITLE 5, UNITED STATES CODE
//80 STAT. 495; 82 STAT. 1212, 5 USC 5581.// (RELATING TO SETTLEMENT OF
ACCOUNTS OF DECEASED EMPLOYEES), FOR SERVICES RENDERED DURING THE PERIOD
BEGINNING ON THE FIRST DAY OF THE FIRST PAY PERIOD WHICH BEGINS ON OR
AFTER JULY 1, 1974, AND ENDING ON THE DATE OF ENACTMENT OF THIS ACT, BY
AN OFFICER OR MEMBER WHO DIES DURING SUCH PERIOD.
(B) FOR THE PURPOSES OF THIS SECTION, SERVICE IN THE ARMED FORCES OF
THE UNITED STATES, IN THE CASE OF AN INDIVIDUAL RELIEVED FROM TRAINING
AND SERVICE IN THE ARMED FORCES OF THE UNITED STATES OR DISCHARGED FROM
HOSPITALIZATION FOLLOWING SUCH TRAINING AND SERVICE, SHALL INCLUDE THE
PERIOD PROVIDED BY LAW FOR THE MANDATORY RESTORATION OF SUCH INDIVIDUAL
TO A POSITION IN OR UNDER THE FEDERAL GOVERNMENT OR THE MUNICIPAL
GOVERNMENT OF THE DISTRICT OF COLUMBIA.
(C) FOR THE PURPOSE OF DETERMINING THE AMOUNT OF INSURANCE FOR WHICH
AN OFFICER OR MEMBER IS ELIGIBLE UNDER THE PROVISIONS OF CHAPTER 87 OF
TITLE 5, UNITED STATES CODE //80STAT. 592; 81 STAT. 646, 5 USC 8701.//
(RELATING TO GOVERNMENT EMPLOYEES GROUP LIFE INSURANCE), ALL CHANGES IN
RATES OF COMPENSATION OR SALARY WHICH RESULT FROM THE ENACTMENT OF THIS
TITLE SHALL BE HELD AND CONSIDERED TO BE EFFECTIVE AS OF JULY 1, 1974.
SEC. III. (A) THE COMMISSIONER OF THE DISTRICT OF COLUMBIA, AND
AFTER JANUARY 2, 1975, THE MAYOR OF THE DISTRICT OF COLUMBIA, SHALL
ANNUALLY CONDUCT A THOROUGH STUDY OF THE COMPENSATION BEING PAID
OFFICERS AND MEMBERS OF THE POLICE AND FIRE DEPARTMENTS OF OTHER
JURISDICTIONS IN THE WASHINGTON METROPOLITAN AREA AND OTHER CITIES OF
COMPARABLE SIZE. "D.C. CODE 4 - 838." THE ANNUAL STUDY MAY INCLUDE
OTHER CONDITIONS OF EMPLOYMENT OF POLICE AND FIREMEN, SUCH HOURS OF
WORK, HEALTH BENEFITS, RETIREMENT BENEFITS, SICK PAY, AND VACATION TIME.
THE ANNUAL STUDY SHALL ALSO INCLUDE THE CURRENT PERCENTAGE CHANGE IN
THE CONSUMER PRICE INDEX FOR THE WASHINGTON METROPOLITAN AREA PUBLISHED
BY THE BUREAU OF LABOR STATISTICS, DEPARTMENT OF LABOR, AND RATES OF
COMPENSATION FOR FEDERAL AND DISTRICT OF COLUMBIA EMPLOYEES HAVING
COMPARABLE DUTIES AND RESPONSIBILITIES.
(B) (1) IN ORDER TO CONDUCT THE ANNUAL STUDY SPECIFIED IN SUBSECTION
(A), THE COMMISSIONER, OR THE MAYOR, AS THE CASE MAY BE, SHALL ESTABLISH
A CITY PERSONNEL SALARY AND BENEFITS STUDY COMMITTEE WHOSE SOLE FUNCTION
SHALL BE TO CONDUCT SUCH ANNUAL STUDY. THE SIZE OF THE COMMITTEE SHALL
BE DETERMINED BY THE COMMISSIONER, OR THE MAYOR, AS THE CASE MAY BE, WHO
SHALL APPOINT THE MANAGEMENT MEMBERS OF THE COMMITTEE. EACH LABOR
ORGANIZATION OR OTHER ASSOCIATION OR GROUP WHICH HAS BEEN SELECTED TO
REPRESENT THE OFFICERS AND MEMBERS OF THE METROPOLITAN POLICE FORCE AND
THE FIRE DEPARTMENT OF THE DISTRICT OF COLUMBIA SHALL SELECT
REPRESENTATIVES OF THEIR RESPECTIVE LABOR ORGANIZATIONS OR OTHER
ASSOCIATION OR GROUP TO BE MEMBERS OF THE LABOR-MANAGEMENT COMMITTEE.
(2) THE NUMBER OF MANAGEMENT MEMBERS AND THE NUMBER OF MEMBERS
REPRESENTING THE LABOR ORGANIZATIONS OR OTHER ASSOCIATIONS OR GROUPS ON
THE LABOR-MANAGEMENT COMMITTEE SHALL BE EQUAL. THE CHAIRMAN OF THE
LABOR MANAGEMENT COMMITTEE SHALL BE CHOSEN BY MEMBERS OF THE COMMITTEE,
AND SHALL NOT BE AN OFFICER OR EMPLOYEE OF THE DISTRICT OF COLUMBIA
GOVERNMENT OR A MEMBER OR EMPLOYEE OF A LABOR ORGANIZATION OR OTHER
ASSOCIATION OR GROUP REPRESENTED ON THE COMMITTEE. IF THE COMMITTEE HAS
NOT CHOSEN A CHAIRMAN WITHIN 10 DAYS AFTER THE DATE OF THE FIRST MEETING
OF THE COMMITTEE, THEN THE CHAIRMAN SHALL BE CHOSEN BY THE DIRECTOR OF
THE FEDERAL MEDIATION AND CONCILIATION SERVICE.
(C) ON OR BEFORE JUNE 30 OF EACH YEAR, THE RESULTS OF THE ANNUAL
STUDY SHALL BE MADE PUBLIC AND SHALL BE AVAILABLE TO THE PARTIES
INVOLVED IN NEGOTIATIONS BETWEEN THE DISTRICT OF COLUMBIA AND
REPRESENTATIVES OF THE OFFICERS AND MEMBERS OF THE METROPOLITAN POLICE
FORCE AND THE FIRE DEPARTMENT OF THE DISTRICT OF COLUMBIA UNDER THE
DISTRICT OF COLUMBIA LABOR RELATIONS PROGRAM. THE RESULTS OF SUCH
ANNUAL STUDY SHALL ALSO FORM THE BASIS FOR CONSIDERATION OF ADJUSTMENTS
IN PAY LEVELS FOR OFFICERS OF THE METROPOLITAN POLICE FORCE AND THE FIRE
DEPARTMENT OF THE DISTRICT OF COLUMBIA WHOSE COMPENSATION IS ADJUSTED IN
A MANNER WHICH IS OUTSIDE THE SCOPE OF THE NEGOTIATIONS REFERRED TO IN
THE FIRST SENTENCE OF THIS SUBSECTION.
SEC. 112. (A) IF AFTER JANUARY 2, 1975, AS A RESULT OF COLLECTIVE
BARGAINING THE PARTIES HAVE REACHED A NEGOTIATED SOLUTION WITH RESPECT
TO CHANGES IN COMPENSATION FOR OFFICERS AND MEMBERS OF THE POLICE AND
FIRE DEPARTMENTS, THE MAYOR SHALL RECOMMEND TO THE COUNCIL OF THE
DISTRICT OF COLUMBIA THAT SAID CHANGES SHOULD BE AUTHORIZED AND THAT THE
CONGRESS SHALL BE REQUESTED TO APPROPRIATE SUFFICIENT FUNDS FOR THAT
PURPOSE. "D.C. CODE 4 - 839." THE FIRST RECOMMENDATION MADE BY THE
MAYOR UNDER THIS SUBSECTION SHALL BE MADE BY NO LATER THAN OCTOBER 1,
1975.
(B) THE RECOMMENDATIONS SUBMITTED BY THE MAYOR UNDER SUBSECTION (A)
SHALL BE CONSIDERED A LABOR-MANAGEMENT ISSUE FOR THE PURPOSES OF
SUBSECTION (C).
(C) IF THE PARTIES HAVE REACHED AN IMPASSE IN NEGOTIATIONS ON OR
BEFORE THE EXPIRATION DATE OF THEIR EXISTING COLLECTIVE BARGAINING
AGREEMENTS, EITHER PARTY SHALL PROMPTLY NOTIFY THE DIRECTOR OF THE
FEDERAL MEDIATION AND CONCILIATION SERVICE IN WRITING. HE SHALL ASSIST
IN THE RESOLUTION OT THAT IMPASSE BY SELECTING AN IMPARTIAL PERSON
EXPERIENCED IN PUBLIC SECTOR DISPUTES TO SERVE AS A MEDIATOR. IF
MEDIATION DOES NOT RESOLVE THE IMPASSE WITHIN THIRTY DAYS, OR ANY
SHORTER PERIOD DESIGNATED BY THE MEDIATOR, THE DIRECTOR SHALL, ONLY UPON
THE REQUEST OF EITHER PARTY, THEN APPOINT ANIMPARTIAL BOARD OF
ARBIRTATION TO INVESTIGATE THE LABOR-MANAGEMENT ISSUES INVOLVED IN THE
DISPUTE, CONDUCT WHATEVER HEARING IT DEEMS NECESSARY, AND TO ISSUE A
WRITTEN AWARD TO THE PARTIES WITH THE OBJECT OF ACHIEVING A PROMPT,
PEACEFUL, AND FAIR SETTLEMENT OF THE DISPUTE. THE AWARD SHALL BE ISSUED
WITHIN TWENTY DAYS AFTER THE BOARD HAS BEEN ESTABLISHED. THE AWARD
SHALL CONTAIN FINDINGS OF FACT AND A STATEMENT OF REASONS. THE AWARD
SHALL BE FINAL AND BINDING UPON THE PARTIES TO THE DISPUTE.
(D) IF THE PROCEDURES SET FORTH IN SUBSECTION (C) AR IMPLEMENTED, NO
CHANGE IN THE STATUS QUO IN EFFECT PRIOR TO CONTRACT EXPIRATION DATE IN
THE CASE OF NEGOTIATIONS FOR A CONTRACT RENEWAL, OR IN EFFECT PRIOR TO
THE TIME IMPASSE IN THE CASE OF AN INITIAL BARGAINING NEGOTIATION, SHALL
BE MADE PENDING THE COMPLETION OF MEDIATION AND/OR ARBITRATION.
(E) THE FACTFINDER, MEDIATOR, AND ANY MEMBERS OF THE BOARD OF
ARBITRATION APPOINTED BY THE DIRECTOR OF THE FEDERAL MEDIATION AND
CONCILIATION SERVICE SHALL BE ENTITLED TO COMPENSATION AT THE MAXIMUM
DAILY RATE ALLOWABLE BY LAW FOR EACH DAY THEY ARE ACTUALLY ENGAGED IN
PERFORMING SERVICES UNDER THIS SECTION.
SEC. 121. (A) SUBSECTION (A) OF THE POLICEMEN AND FIREMEN'S
RETIREMENT AND DISABILITY ACT (D.C. CODE, SEC. 4 - 521) "71 STAT. 391."
IS AMENDED BY ADDING AFTER PARAGRAPH (16) THE FOLLOWING NEW PARAGRAPH:
"(17) THE TERM 'AVERAGE PAY' MEANS THE HIGHEST ANNUAL RATE RESULTING
FROM AVERAGING THE MEMBER'S RATES OF BASIC SALARY IN EFFECT OVER ANY
TWELVE CONSECUTIVE MONTHS OF POLICE OR FIRE SERVICE, WITH EACH RATE
WEIGHTED BY THE TIME IT WAS IN EFFECT, EXCEPT THAT IF THE MEMBER RETIRES
UNDER SUBSECTION (G) AND IF ON THE DATE OF HIS RETIREMENT UNDER THE
SUBSECTION HE HAS NOT COMPLETED TWELVE CONSECUTIVE MONTHS OF POLICE OR
FIRE SERVICE, SUCH TERM MEANS HIS BASIC SALARY AT THE TIME OF HIS
RETIREMENT."
(B) (1) SUBSECTION (F), (G), AND (H) OF THAT ACT (D.C. CODE, SECS. 4
- 526--4 - 528) "STAT. 1133, 84STAT. 1137." ARE EACH AMENDED BY STRIKING
OUT "HIS BASIC SALARY AT THE TIME OF RETIREMENT" EACH PLACE IT OCCURS
AND INSERTING IN LIEU THEREOF "HIS AVERAGE PAY".
(2) SUBSECTION (G) (2) AND (H) (1) OF THAT ACT ARE EACH AMENDED BY
STRIKING OUT "HIS BASIC SALARY AT THE TIME OF RETIREMENT" AND INSERTING
IN LIEU THEREOF "HIS AVERAGE PAY".
(3) SUBSECTION (H) (3) OF THAT ACT IS AMENDED BY STRIKING OUT "THE
BASIC SALARY OF SUCH MEMBER AT THE TIME OF RETIREMENT" AND INSERTING IN
LIEU THEREOF "THE AVERAGE PAY OF SUCH MEMBER".
(4) SUBSECTION (K) (2) OF THA ACT (D.C. CODE, SEC. 4 - 531) IS
AMENDED BY (1) STRIKING OUT "BASIC SALARY" AND INSERITNG IN LIEU THEREOF
"AVERAGE PAY" AND (2) STRIKING OUT, "SUBCLASS (A)," AND INSERTING IN
LIEU THEREOF "OF SALARY".
(5) SUBSECTION (K) (3) OF THAT ACT (D.C. CODE, SEC. 4 - 531) IS
AMENDED BY STRIKING OUT "BASIC SALARY" EACH PLACE IT OCCURS AND
INSERTING IN LIEU THEREOF "AVERAGE PAY".
(C) SUBSECTION (G) OF THAT ACT (D.C. CODE, SEC. 4 - 527 IS AMENDED BY
ADDING AT THE END THEREOF THE FOLLOWING NEW PARAGRAPH:
"(3) A MEMBER SHALL BE RETIRED UNDER THIS SUBSECTION ONLY UPON THE
RECOMMENDATION OF THE BOARD OF POLICE AND FIRE SURGEONS AND THE
CONCURRENCE THEREIN BY THE COMMISSIONER,EXCEPT THAT IN ANY CASE IN WHICH
A MEMBER SEEKS HIS OWN RETIREMENT UNDER THIS SUBSECTION, HE SHALL, IN
THE ABSENCE OF SUCH RECOMMENDATION, PROVIDE THE NECESSARY EVIDENCE TO
FORM THE BASIS FOR THE APPROVAL OF SUCH RETIREMENT BY THE
COMMISSIONER.".
(D) (1) SUBSECTION (A) (3) OF THAT ACT (D.C. CODE, SEC. 4 - 521(3))
"84 STAT. 1392." IS AMENDED TO READ AS FOLLOWS:
"(3) THE TERM 'WIDOW' MEANS THE SURVIVING WIFE OF A MEMBER OR FORMER
MEMBER IF--,
"(A) SHE WAS MARRIED TO SUCH MEMBER OR FORMER MEMBER (I) WHILE
HE WAS A MEMBER, OR (II) FOR AT LEAST ONE YEAR IMMEDIATELY
PRECEDING HES DEATH, OR
"(B) SHE IS THE MOTHER OF ISSUE BY SUCH MARRIAGE."
(2) THE AMENDMENT MADE BY PARAGRAPH (1) SHALL APPLY WITH RESPECT TO
ANY SURVIVING WIFE OF A MEMBER (AS THAT TERM IS DEFINED IN SUBSECTION
(A) (1) OF THE POLICEMEN AND FIREMEN'S RETIREMENT AND DISABILITY ACT "71
STAT. 391." OR FORMER MEMBER IRRESPECTIVE OF WHETHER SUCH WIFE BECAME A
WIDOW (AS THAT TERM IS DEFINED IN SUCH AMENDMENT) PRIOR TO, ON, OR AFTER
THE DATE OF THE ENACTMENT OF THIS ACT, EXCEPT THAT NO ANNUITY SHALL BE
PAID BY REASON OF THE AMENDMENT MADE BY PARAGRAPH (1) FOR ANY PERIOD
PRIOR TO THE FIRST DAY OF THE FIRST PERIOD BEGINNING ON OR AFTER JULY 1,
1974. "D.C. CODE 4 - 521 NOTE."
SEC. 122. (A) IN ORDER TO CARRY OUT HIS RESPONSIBILITIES UNDER THE
POLICEMEN AND FIREMEN'S RETIREMENT AND DISABILITY ACT (D.C. CODE, SECS.
4 - 521 ET SEQ.) "39 STAT. 676." WITH RESPECT TO RETIREMENT AND
DISABILITY DETERMINATIONS, AND RELATED FUNCTIONS, THE COMMISSIONER OF
THE DISTRICT OF COLUMBIA SHALL ESTABLISH A POLICE AND FIREMEN'S
RETIREMENT AND RELIEF BOARD (HEREINAFTER IN THIS SECTION REFFERED TO AS
THE "BOARD". "D.C. CODE 4 - 533A." THE BOARD SHALL BE COMPOSED OF--,
(1) MEMBERS AND ALTERNATES APPOINTED FROM AMONG PERSONS WHO ARE
EMPLOYEES OF THE DISTRICT OF COLUMBIA, ONE MEMBER AND ALTERNATE
EACH FROM THE DISTRICT OF COLUMBIA PERSONNEL OFFICE, CORPORATION
COUNSEL, DEPARTMENT OF HUMAN RESOURCES, METORPOLITAN POLICE FORCE,
AND THE FIRE DEPARTMENT OF THE DISTRICT OF COLUMBIA; AND
(2) TWO MEMBERS, ONE OF WHOM SHALL BE A PHYSICIAN, APPOINTED
FROM AMONG PERSONS WHO ARE NOT OFFICERS OR EMPLOYEES OF THE
DISTRICT OF COLUMBIA.
THE MEMBER, AND ALTERNATE, APPOINTED TO THE BOARD FROM AMONG EMPLOYEES
OF THE DEPARTMENT OF HUMAN RESOURCES SHALL BOTH BE MEDICAL OFFICERS.
ALL APPOINTMENTS SHALL BE MADE BY THE COMMISSIONER.
(B) THE MEMBERS APPOINTED UNDER SUBSECTION (A) (2) SHALL BE APPOINTED
FOR TWO YEARS, AND SHALL BE ENTITLED TO RECEIVE COMPENSATION FOR EACH
DAY THEY ARE ACTUALLY ENGAGED IN CARRYING OUT DUTIES VESTED IN THE BOARD
IN THE SAME MANNER AS PERSONS EMPLOYED INTERMITTENTLY UNDER SECTION 3109
OF TITLE 5 OF THE UNITED STATES CODE. "80 STAT. 416." SUCH MEMBERS
SHALL BE APPOINTED WITHIN NINETY DAYS AFTER THE DATE OF ENACTMENT OF
THIS TITLE.
(C) THE COMMISSIONER SHALL ESTABLISH RULES FOR THE BOARD TO ASSURE
THAT THE BOARD FUNCTIONS FAIRLY AND EQUITABLY. THE COMMISSIONER SHALL
PROVIDE THE STAFF NECESSARY FOR THE BOARD.
SEC. 123. SUBSECTION (M) (2) OF THE POLICEMEN AND FIREMEN'S
RETIREMENT AND DISABILITY ACT (D.C. CODE, SEC. 4 - 533(2)) "86 STAT.
642." IS AMEMDED BY INSERTING AT THE END THEREOF "THE COMMISSIONER SHALL
NOT REQUIRE EMPLOYMENT QUESTIONNAIRES OR THE MEDICAL EXAMINATION OF SUCH
MEMBER AFTER HE REACHES THE AGE OF 50.".
SEC. 124. (A) THE AMENDMENTS MADE BY SUBSECTIONS (A), (B), AND (D)
OF SECTION 121 SHALL APPLY WITH RESPECT TO ANY ANNUITY WHICH BEGINS ON
OR AFTER JULY 1, 1975. "D.C. CODE 4 - 521 NOTE."
(B) THE AMENDMENTS MADE BY SUBSECTION (C) OF SECTION 121 SHALL TAKE
EFFECT ON THE FIRST DAY OF THE FIRST PAY PERIOD BEGINNING MORE THAN
THIRTY DAYS AFTER THE DATE OF ENACTMENT OF THIS TITLE.
(C) SECTION 122 SHALL TAKE EFFECT ON THE DATE OF ENACTMENT OF THIS
TITLE.
SEC. 201. THIS TITLE MAY BE CITED AS THE "TEACHERS' SALARY ACT
AMENDMENTS OF 1974".
SEC. 202. THE DISTRICT OF COLUMBIA TEACHERS' SALARY ACT OF 1955 (D.
C. CODE, SEC. 31 - 1501 ET SEQ.) "D.C. CODE 31 - 1501 NOTE." IS AMENDED
TO READ AS FOLLOWS:
(1) EFFECTIVE ON THE FIRST DAY OF THE FIRST PAY PERIOD BEGINNING ON
OR AFTER SEPTEMBER 1, 1974, THE SALARY SCHEDULE CONTAINED IN SECTION 1
OF THE ACT (D.C. CODE, SEC. 31 - 1501) "86 STAT. 1005." IS AMENDED TO
READ AS FOLLOWS: PROVIDED, HOWEVER, THAT SALARY PAID TO CLASS 1A SHALL
NOT EXCEED THE AMOUNT PAYABLE TO LEVEL III OF THE EXECUTIVE SCHEDULE "83
STAT. 863, 5 USC 5314." AND THAT THE SALARY PAID TO ANY OTHER CLASS
SHALL NOT EXCEED THE AMOUNT PAYABLE TO LEVEL V OF THE EXECUTIVE
SCHEDULE: "5 USC 5315." (TEACHERS AND SCHOOL OFFICERS SALARY SCHEDULE
OMITTED 88 STAT. 1043 - 88 STAT. 1044.)
(2) EFFECTIVE ON THE FIRST DAY OF THE FIRST PAY PERIOD BEGINNING ON
OF AFTER JANUARY 1, 1975, THAT SALARY SCHEDULE IS AMENDED TO READ AS
FOLLOWS, "ANTE, P. 1042." EXCEPT THAT SALARY PAID TO CLASS 1A SHALL NOT
EXCEED THE AMOUNT PAYABLE TO LEVEL III OF THE EXECUTIVE SCHEDULE "83
STAT. 863, 5 USC 5314." AND THAT THE SALARY PAID TO ANY OTHER CLASS
SHALL NOT EXCEED THE AMOUNT PAYABLE TO LEVEL V OF THE EXECUTIVE
SCHEDULE: "5 USC 5315." (TEACHERS AND SCHOOL OFFICERS SALARY SCHEDULE
OMITTED 88 STAT. 1046 - 88 STAT. 1048.)
(3) EFFECTIVE ON THE FIRST DAY OF THE FIRST PAY PERIOD BEGINNING ON
OR AFTER SEPTEMBER 1, 1975, THE SCHEDULE OF PAY RATES IN SECTION 13 (A)
OF THAT ACT (D.C. SEC. 31 - 1542(A)) "86 STAT. 1008." IS AMENDED TO READ
AS FOLLOWS: (TABLE OMITTED 88 STAT. 1049)
(4) EFFECTIVE ON THE FIRST DAY OF THE FIRST PAY PERIOD BEGINNING ON
OR AFTER JANUARY 1, 1975, THAT SCHEDULE OF PAY RATES IS AMENDED TO READ
AS FOLLOWS: (SUMMER SCHOOL TEACHERS AND ADULT EDUCATION SCHOOLS SALARY
SCHEDULE OMITTED 88 STAT. 1049)
SEC. 203. BEGINNING WITH THE CALENDAR YEAR 1975, THE DISTRICT OF
COLUMBIA BOARD OF EDUCATION SHALL, BY MARCH 1 OF EACH YEAR, SUBMIT TO
THE MAYOR OF THE DISTRICT OF COLUMBIA THE -- "D.C. CODE 31 - 1501A."
(A) PERCENTAGE RATE OF THE COST-OF-LIVING CHANGE SINCE THE
EFFECTIVE DATE OF THE LAST INCREASE OF THE COMPENSATION SCHEDULE
FOR EDUCATIONAL PERSONNEL IN THE DISTRICT OF COLUMBIA; AND
(B) RESULTS OF A STUDY COMPARING COMPENSATION OF TEACHERS IN
THE DISTRICT OF COLUMBIA WITH (1) TEACHERS IN CITIES OF COMPARABLE
SIZE, AND (2) TEACHERS WITHIN OTHER JURISDICTIONS OF THE
WASHINGTON METROPOLITAN AREA.
THE MAYOR SHALL SUBMIT THE INFORMATION SUBMITTED TO HIM BY THE BOARD
UNDER THIS SECTION TO THE COUNCIL OF THE DISTRICT OF COLUMBIA ALONG WITH
HIS RECOMMENDATIONS WITH RESPECT TO COMPENSATION (AND OTHER RELATED
MATTERS) OF EDUCATIONAL PERSONNEL OF THE BOARD.
SEC. 204. "D.C. CODE 31 - 1513." (A) EACH PERSON RECEIVING BASIC
COMPENSATION UNDER CLASS 15 OF THE SALARY SCHEDULE IN SECTION 1(A) OF
THE DISTRICT OF COLUMBIA TEACHER'S SALARY ACT OF 1955 (D.C. CODE, SEC.
31 - 1501) "ANTE, P. 1045." SHALL BE ISSUED A FIVE-YEAR TEACHING
CERTIFICATE. RENEWALS SHALL BE DEPENDENT UPON APPLICATION AND SIX OR
MORE HOURS OF APPROPRIATE CREDIT EARNED DURING THE PRECEDING FIVE-YEAR
PERIOD. THE DISTRICT OF COLUMBIA BOARD OF EDUCATION SHALL ESTABLISH
APPROPRIATE RULES, REGULATIONS, AND REQUIREMENTS TO CARRY OUT THE
PURPOSES OF THIS SECTION.
(B) FOR THE PURPOSES OF THIS SECTION,CLASS 15, GROUP B, SHALL INCLUDE
PERSONS POSSESSING A MASTER'S DEGREE OR THIRTY APPROPRIATE SEMESTER
HOURS BEYOND THE BACHELOR'S DEGREE.
(C) FOR PURPOSES OF IMPLEMENTING THIS SECTION THE BOARD SHALL
DETERMINE THE APPROPRIATENESS OF THE COURSE WORK OBTAINED IN LIEU OF THE
DEGREE.
SEC. 205. (A) SECTION 2(A) OF THE DISTRICT OF COLUMBIA TEACHERS'
SALARY ACT OF 1955 (D.C. CODE, SEC. 31 - 1511(A)) "86 STAT. 1009." IS
AMENDED BY STRIKING OUT "(D) ATTENDANCE OFFICER, OR (E) CHILD LABOR
INSPECTOR," AND INSERTING "OR" AFTER "TACTICS," IN PARAGRAPH (B).
(B) THE EMPLOYEES IN THE CATEGORY REPEALED BY THE AMENDMENT MADE BY
SUBSECTION (A) SHALL MEET THE GENERAL REQUIREMENTS OF SUCH SECTION 2(
A). "D.C. CODE 31 - 1511 NOTE."
(C) THE AMENDMENT MADE BY SUBSECTION (A) SHALL BE EFFECTIVE ON AND
AFTER THIS DATE OF ENACTMENT OF THIS ACT.
SEC. 301. SECTION 5 OF THE ACT ENTITLED "AN ACT FOR THE RETIREMENT
OF PUBLIC SCHOOL TEACHERS IN THE DISTRICT OF COLUMBIA", APPROVED AUGUST
7, 1946 (D.C. CODE, SEC. 31 - 725) "66 STAT. 17; 86 STAT. 1013." IS
AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING:
"(E) (1) NOTWITHSTANDING ANY OTHER PROVISION OF THIS ACT, OTHER THAN
THIS SUBSECTION, THE MONTHLY RATE OF ANNITY PAYABLE UNDER THIS SECTION
SHALL NOT BE LESS THAN THE SMALLEST PRIMARY INSURANCE AMOUNT, INCLUDING
ANY COST-OF-LIVING INCREASE ADDED TO THAT AMOUNT, AUTHORIZED TO BE PAID
FROM TIME TO TIME UNDER TITLEII OF THE SOCIAL SECURITY ACT. "42 USC
401."
"(2) NOTWITHSTANDING ANY OTHER PROVISION OF THIS ACT, OTHER THAN THIS
SUBSECTION, THE MONTHLY RATE OF ANNUITY PAYABLE UNDER THIS SECTION TO A
SURVIVING CHILD SHALL NOT BE LESS THAN THE SMALLEST PRIMARY INSURANCE
AMOUNT, INCLUDING ANY COST-OF-LIVING INCREASE ADDED TO THAT AMOUNT,
AUTHORIZED TO BE PAID FROM TIME TO TIME UNDER TITLE II OF THE SOCIAL
SECURITY ACT, OR THREE TIMES SUCH PRIMARY INSURANCE AMOUNT DIVIDED BY
THE NUMBER OF SURVIVING CHILDREN ENTITLED TO AN ANNUITY, WHICHEVER IS
THE LESSER.
"(3) THE PROVISIONS OF THIS SUBSECTION SHALL NOT APPLY TO AN
ANNUITANT OR TO A SURVIVOR WHO IS OR BECOMES ENTITLED TO RECEIVE FROM
THE UNITED STATES, OR THE DISTRICT OF COLUMBIA, AN ANNUITY OR RETIRED
PAY UNDER ANY OTHER CIVILIAN OR MILITARY RETIREMENT SYSTEM, BENEFITS
UNDER TITLE II OF THE SOCIAL SECURITY ACT, A PENSION, VETERANS'
COMPENSATION, OR ANY OTHER PERIODIC PAYMENT OF A SIMILAR NATURE, WHEN
THE MONTHLY RATE THEREOF IS EQUAL TO OR GREATER THAN THE SMALLEST
PRIMARY INSURANCE AMOUNT, INCLUDING ANY COST-OF-LIVING INCREASE ADDED TO
THAT AMOUNT, AUTHORIZED TO BE PAID FROM TIME TO TIME UNDER TITLE II OF
THE SOCIAL SECURITY ACT.
"(4) AN ANNUITY PAYABLE FROM THE TEACHERS' RETIREMENT AND ANNUITY
FUND TO A FORMER TEACHER, WHICH IS BASED ON A SEPARATION OCCURRING PRIOR
TO OCTOBER 20, 1969, IS INCREASED BY $240.
"(5) IN LIEU OF ANY INCREASE BASED ON AN INCREASE UNDER PARAGRAPH (4)
OF THIS SUBSECTION, AN ANNUITY PAYABLE FROM THE TEACHERS' RETIREMENT AND
ANNUITY FUND TO THE SURVIVING SPOUSE OF A TEACHER OR ANNUITANT, WHICH IS
BASED ON A SEPARATION OCCURRING PRIOR TO OCTOBER 20, 1969, SHALL BE
INCREASED BY $132.
"(6) THE MONTHLY RATE OF AN ANNUITY RESULTING FROM AN INCREASE UNDER
PARAGRAPH (4) OR (5) SHALL BE CONSIDERED AS THE MONTHLY RATE AO ANNUITY
PAYABLE UNDER SUBSECTION (A) FOR PURPOSES OF COMPUTING THE MINIMUM
ANNUITY UNDER SUBSECTION (E).".
SEC. 302. THIS TITLE SHALL BECOME EFFECTIVE ON THE DATE OF
ENACTMENT. "D.C. CODE 31 - 725 NOTE." ANNUITY INCREASES UNDER THIS
TITLE SHALL APPLY TO ANNUITIES WHICH COMMENCE BEFORE, ON, OR AFTER THE
DATE OF ENACTMENT OF THIS TITLE, BUT NO INCREASE IN ANNUITY SHALL BE
PAID FOR ANY PERIOD PRIOR TO THE FIRST DAY OF THE FIRST MONTH WHICH
BEGINS ON OR AFTER THE NINETIETH DAY AFTER THE DATE OF ENACTMENT OF THIS
TITLE, OR THE DATE ON WHICH THE ANNUITY COMMENCES, WHICHEVER IS LATER.
SEC. 401. THIS TITLE MAY BE CITED AS THE "DISTRICT OF COLUMBIA REAL
PROPERTY TAX REVISION ACT OF 1974". "D.C. CODE 47 - 621 NOTE."
SEC. 402. "D.C. CODE 47 - 621." IT IS THE INTENT OF CONGRESS TO
REVISE THE REAL PROPERTY TAX IN THE DISTRICT OF COLUMBIA TO ACHIEVE THE
FOLLOWING OBJECTIVES:
(1) EQUITABLE SHARING OF THE FINANCIAL BURDEN OF THE GOVERNMENT
OF THE DISTRICT OF COLUMBIA.
(2) FULL PUBLIC INFORMATION REGARDING ASSESSMENTS AND APPEAL
PROCEDURES.
(3) PROMOTION OF ECONOMIC ACTIVITY, DIVERSITY OF LAND USE AND
PRESERVATION OF THE CHARACTER OF THE DISTRICT OF COLUMBIA.
(4) ASSURANCE THAT SHIFTS IN THE TAX BURDEN ON INDIVIDUAL
TAXPAYERS WILL NOT BE EXCESSIVE.
(5) COMPARABILITY OF TAX EFFORT BETWEEN THE DISTRICT OF
COLUMBIA AND SURROUNDING JURISDICTIONS IN THE METROPOLITAN AREA
AND CITIES OF COMPARABLE SIZE.
SEC. 403. "D.C. CODE 47 - 622." FOR THE PURPOSES OF THIS TITLE--,
(1) THE TERM "REAL PROPERTY" MEANS REAL ESTATE IDENTIFIED BY PLAT ON
THE RECORDS OF THE DISTRICT SURVEYOR ACCORDING TO LOT AND SQUARE
TOGETHER WITH IMPROVEMENTS THEREON.
(2) THE TERM "COMMISSIONER" MEANS THE COMMISSIONER OF THE DISTRICT OF
COLUMBIA ESTABLISHED UNDER REORGANIZATION PLAN NUMBERED 3 OF 1967. "81
STAT. 948, 5 USC APP. II."
(3) THE TERM "COUNCIL" MEANS THE DISTRICT OF COLUMBIA COUNCIL
ESTABLISHED UNDER REORGANIZATION PLAN NUMBERED 3 OF 1967.
(4) THE TERM "ESTIMATED MARKET VALUE" MEANS 100 PER CENTUM OF THE
MOST PROBABLE PRICE AT WHICH A PARTICULAR PIECE OF REAL PROPERTY, IF
EXPOSED FOR SALE IN THE OPEN MARKET WITH A REASONABLE TIME FOR THE
SELLER TO FIND A PURCHASER, WOULD BE EXPECTED TO TRANSFER UNDER
PREVAILING MARKET CONDITIONS BETWEEN PARTIES WHO HAVE KNOWLEDGE OF THE
USES TO WHICH THE PROPERTY MAY BE PUT, BOTH SEEKING TO MAXIMIZE THEIR
GAINS AND NEITHER BEING IN A POSITION TO TAKE ADVANTAGE TO THE
EXIGENCIES OF THE OTHER.
(5) THE TERM "REGULATION", UNLESS SPECIFICALLY IDENTIFIED AS A
REGULATION OF THE COMMISSIONER, MEANS A REGULATION OF THE COUNCIL
ENACTED UNDER SECTION 406 OF THE REORGANIZATION PLAN NUMBERED 3 OF 1967,
AND AFTER JANUARY 2, 1975, SUCH TERM MEANS AN ACT OF THE COUNCIL OF THE
DISTRICT OF COLUMBIA ENACTED UNDER SECTION 412 (AND RELATED SECTIONS) OF
THE DISTRICT OF COLUMBIA SELF-GOVERNMENT AND GOVERNMENTAL REORGANIZATION
ACT. "87 STAT. 788, D.C. CODE 1 - 101 NOTE."
(6) THE TERM "TAX YEAR" MEANS--,
(A) WITH RESPECT TO A REAL PROPERTY TAX RATE PROPOSED BY THE
MAYOR OR ESTABLISHED BY THE COUNCIL AFTER JANUARY 1 BUT BEFORE
JUNE 30 OF ANY CALENDAR YEAR, THE NEXT FOLLOWING FISCAL YEAR; AND
(B) WITH RESPECT TO A REAL PROPERTY TAX RATE PROPOSED BY THE
MAYOR OR ESTABLISHED BY THE COUNCIL AFTER JUNE 30 IN ANY CALENDAR
YEAR, THE FISCAL YEAR DURING WHICH THE RATE WAS PROPOSED OR
ESTABLISHED.
SUBPART A--REAL PROPERTY TAX RATE
SEC. 411. "D.C. CODE 47 - 631." NOTWITHSTANDING THE PROVISIONS OF
THE ACT OF JUNE 2, 1922 (D.C. CODE, SEC. 47 - 501), "42 STAT. 669."
THERE IS HERBY LEVIED FOR EACH FISCAL YEAR A TAX ON REAL PROPERTY IN THE
DISTRICT OF COLUMBIA AT A RATE DETERMINED ACCORDING TO THE PROVISIONS OF
THIS TITLE. UNLESS OTHERWISE PROVIDED BY LAW, ALL REVENUES RECEIVED
FROM SUCH TAX SHALL BE DEPOSITED, FROM TIME TO TIME, IN THE TREASURY OF
THE UNITED STATES, TO THE CREDIT OF THE DISTRICT OF COLUMBIA. SEC. 412.
"D.C. CODE 47 - 632." THE COUNCIL, AFTER PUBLIC HEARING, SHALL
ESTABLISH EACH YEAR, WITHIN THIRTY DAYS AFTER RECEIPT OF THE
COMMISSIONER'S RECOMMENDATION UNDER SECTION 413, A RATE OF TAXATION
WHICH, EXCEPT AS PROVIDED IN SECTION 431, SHALL BE APPLIED, DURING THE
TAX YEAR, TO THE ASSESSED VALUE OF ALL REAL PROPERTY SUBJECT TO
TAXATION. THE COUNCIL MAY BY RESOLUTION EXTEND TIME FOR ANY YEAR FOR
SETTING SUCH RATE OF TAXATION, EXCEPT THAT IF THE COUNCIL DOES MAKE SUCH
AN EXTENSION, IT MUST ESTABLISH SUCH A RATE FOR THE NEXT YEAR. IF THE
COUNCIL FAILS TO EASTABLISH SUCH A RATE WITHIN SUCH THIRTY DAYS, AND
FAILS TO EXTEND THE TIME FOR ESTABLISHING SUCH A RATE, THE RATE
CALCULATED BY THE COMMISSIONER, PURSUANT TO SECTION 413, SHALL BE THE
RATE FOR THAT TAX YEAR.
SEC. 413. "D.C. CODE 47 - 633." (A) (1) EXCEPT AS PEOVIDED IN
PARAGRAPH (2), BY JULY 15 OF EACH YEAR, THE COMMISSIONER SHALL CALCULATE
AND SUBMIT TO THE COUNCIL A PROPOSED REAL PROPERTY TAX RATE FOR THE TAX
YEAR, AND INFORM THE COUNCIL OF HIS CERTIFICATION OF THE ASSESSMENT ROLL
PURSUANT TO SECTION 426 (G). THE COMMISSIONER MAY EXTEND THE PERIOD FOR
SUBMITTING SUCH RECOMMENDATION.
(2) WITH RESPECT TO THE REAL PROPERTY TAX RATE FOR THE FISCAL YEAR
ENDING JUNE 30, 1975, THE COMMISSIONER SHALL SUBMIT HIS RECOMMENDATION
TO THE COUNCIL WITHIN 30 DAYS AFTER THE DATE OF ENACTMENT OF THIS TITLE.
(B) AT THE TIME THE COMMISSIONER SUBMITS TO THE COUNCIL THE PROPOSED
REAL PROPERTY TAX RATE UNDER SUBSECTION (A), HE SHALL ALSO SUBMIT THE
FOLLOWING:
(1) THE TOTAL AGGREGATE ASSESSED VALUE OF TAXABLE REAL
PROPERTY. FOR THE YEAR PRECEDING THE TAX YEAR BY MAJOR CLASS OR
TYPE OF PROPERTY.
(2) THE ESTIMATED TOTAL AGGREGATE ASSESSED VALUE OF TAXABLE
REAL PROPERTY FOR THE TAX YEAR FOR WHICH THE PROPERTY TAX RATE
RECOMMENDATION IS BEING MADE, BY MAJOR CLASS OR TYPE OF PROPERTY,
INDICATING SEPARATELY FOR EACH CLASS OR TYPE THE ESTIMATED VALUE
ATTRIBUTABLE TO NEW CONSTRUCTION.
(3) THE REAL PROPERTY TAX RATE (ROUNDED TO THE NEAREST PENNY)
CALCULATED TO YIELD IN THE TAX YEAR THE SAME AMOUNT OF REVENUE
(EXCLUSIVE OF THE REVENUE ATTRIBUTABLE TO NEW CONSTRUCTION) AS WAS
RAISED BY THAT TAX AT THE RATE APPLICABLE DURING THE YEAR
PRECEDING THE TAX YEAR.
(C) THE REAL PROPERTY TAX RATE SUBMITTED BY THE COMMISSIONER PURSUANT
TO SUBSECTION (A) SHALL BECOME THE REAL PROPERTY TAX RATE APPLICABLE
DURING THE TAX YEAR FOR WHICH IT IS SUBMITTED UNLESS THE COUNCIL ACTS TO
SET A DIFFERENT SUCH RATE PURSUANT TO SECTION 412.
(D) ON OR BEFORE FEBRUARY 1 OF EACH YEAR THE COMMISSIONER SHALL
ESTIMATE AS CLOSELY AS POSSIBLE THE RATE TO BE CALCULATED IN SUBSECTION
(A) AND SHALL SO INFORM THE COUNCIL.
(E) THE REAL PROPERTY TAX RATE APPLICABLE IN THE DISTRICT FOR THE
FISCAL YEAR ENDING JUNE 30, 1975, CALCULATED ACCORDING TO THE PROVISIONS
OF SECTIONS 411, 421, 413, AND 461, SHALL BE APPLIED TO THE ASSESSMENT
ROLL FOR 1975 DETERMINED ACCORDING TO PROVISIONS OF LAW IN EFFECT PRIOR
TO THE EFFECTIVE DATE OF THIS ACT.
SEC. 414. "D.C. CODE 47 - 634." AT THE TIME THE COMMISSIONER SUBMITS
TO THE COUNCIL THE PROPOSED REAL PROPERTY TAX RATE UNDER SECTION 413, HE
SHALL ALSO SUBMIT THE FOLLOWING:
(1) THE TOTAL AGGREGATE ASSESSED VALUE OF REAL PROPERTY EXEMPT
FROM THE REAL PROPERTY TAX LEVIED IN THE DISTRICT FOR THE CURRENT
FISCAL YEAR BY MAJOR CLASS OR TYPE OF EXEMPT STATUS AND THE TAX
THAT WOULD HAVE BEEN PAID DURING SUCH FISCAL YEAR HAD SUCH
PROPERTY NOT BEEN EXEMPT.
(2) THE ESTIMATED TOTAL AGGREGATE ASSESSED VALUE OF REAL
PROPERTY EXEMPT FROM THE REAL PROPERTY TAX LEVIED IN THE
DISTRICT BY MAJOR CLASS OR TYPE OF EXEMPT STATUS AND THE TAX THAT
WOULD BE PAID DURING THE FISCAL YEAR UNDER THE REAL PROPERTY TAX
RATE PROPOSED BY THE COMMISSIONER PURSUANT TO SECTION 413.
SEC. 415. "D.C. CODE 47 - 636." IN ESTABLISHING A REAL PROPERTY TAX
RATE THE COUNCIL SHALL MAKE A COMPARISON OF TAX RATES AND BURDENS
APPLICABLE TO RESIDENTIAL AND NONRESIDENTIAL PROPERTY IN THE DISTRICT
WITH THOSE SUCH RATES APPLICABLE TO SUCH PROPERTY IN JURISDICTIONS IN
THE VICINITY OF THE DISTRICT. THE COMPARISON SHALL INCLUDE OTHER MAJOR
TAXES IN ADDITION TO THE TAX ON REAL PROPERTY. WITHOUT IN ANY WAY
LIMITING THE AUTHORITY OF THE COUNCIL, IT IS THE INTENTION OF CONGRESS
THAT TAX BURDENS IN THE DISTRICT BE REASONABLY COMPARABLE TO THOSE IN
THE SURROUNDING JURISDICTIONS OF THE WASHINGTON METROPOLITAN AREA.
SEC. 416. "D.C. 47 - 636." THE COMMISSIONER SHALL, BY JUNE 30 OF
EACH YEAR, COMPILE AND PUBLISH INFORMATION REGARDING THE RELATIVE AMOUNT
OF TAX FOR ALL MAJOR TAXES IN THE DISTRICT COMPARED WITH THOSE IN
SURROUNDING JURISDICTIONS IN THE WASHINGTON METROPOLITAN AREA AND WITH
THOSE IN OTHER CITIES. THE INFORMATION SHALL INCLUDE THE RATE OF THE
PROPERTY TAX LEVIED ON RESIDENTIAL AND NONRESIDENTIAL PROPERTY, AND THE
EFFECT OF MAJOR TAXES LEVIED ON FAMILIES OF DIFFERENT INCOME LEVELS AND
ON BUSINESSES.
SEC. 421. "D.C. CODE 47 - 641." (A) THE ASSESSED VALUE OF ALL REAL
PROPERTY SHALL BE LISTED ON THE ASSESSMENT ROLL FOR REAL PROPERTY
TAXATION PURPOSES ANNUALLY AS PROVIDED IN THIS PART. THE ASSESSED VALUE
FOR ALL REAL PROPERTY SHALL BE THE ESTIMATED MARKET VALUE OF SUCH
PROPERTY AS OF JANUARY 1 OF THE YEAR PRECEDING THE TAX YEAR, AS
DETERMINED BY THE COMMISSIONER. IN DETERMINING ESTIMATED MARKET VALUE
FOR VARIOUS KINDS OF REAS PROPERTY THE COMMISSIONER SHALL TAKE INTO
ACCOUNT ANY FACTOR WHICH MIGHT HAVE A BEARING ON THE MARKET VALUE OF THE
REAL PROPERTY INCLUDING, BUT NOT LIMITED TO, SALES INFORMATION ONSIMILAR
TYPES OF REAL PROPERTY, MORTGAGE, OR OTHER FINANCIAL CONSIDERATIONS,
REPRODUCTION COST LESS ACCRUED DEPRECIATION BECAUSE OF AGE, CONDITION,
AND OTHER FACTORS, INCOME EARNING POTENTIAL (IF ANY), ZONING, AND
GOVERNMENT-IMPOSED RESTRICTIONS. ASSESSMENTS SHALL BE BASED UPON THE
SOURCES OF INFORMATION AVAILABLE TO THE COMMISSIONER WHICH MAY INCLUDE
ACTUAL VIEW.
(B) ALL REAL PROPERTY SHALL BE ASSESSED NO LESS FREQUENTLY THAN ONCE
EVERY TWO YEARS, AND AS SOON AS PRACTICABLE SUCH ASSESSMENT SHALL BE
MADE ANNUALLY. THE COUNCIL MAY AUTHORIZE AND DIRECT ASSESSMENTS TO BE
MADE ANNUALLY FOR SOME OR ALL CLASSES OF REAL PROPERTY, EXCEPT THAT FOR
FISCAL YEAR 1978, AND FOR EACH FISCAL THEREAFTER, ALL REAL PROPERTY
SHALL BE ASSESSED ON AN ANNUAL BASIS.
(C) THE COUNCIL MAY ADOPTREGULATIONS CONCERNING THE ASSESSMENT AND
REASSESSMENT OF REAL PROPERTY AND MATTERS RELATING THERETO WHICH SHALL
BE CONSISTENT WITH THE PROVISIONS OF THIS TITLE AND OTHER APPLICABLE
PROVISIONS OF LAW.
(D) THE COUNCIL MAY ADOPT REGULATIONS REGARDING INFORMATION TO BE
FURNISHED THE COMMISSIONER BY OWNERS OF REAL PROPERTY. SUCH REGULATIONS
SHALL PROVIDE, UNDER PENALTY OF LAW, THAT ALL SUCH INFORMATION WITH
RESPECT TO INCOME DERIVED FROM INVESTMENT ON INCOME-PRODUCING REAL
PROPERTY SHALL BE HANDLED IN THE SAME CONFIDENTIAL MANNER AS INCOME TAX
RETURNS AND SUPPORTING DATA REQUIRED TO BE SUBMITTED TO THE GOVERNMENT
OF THE DISTRICT OF COLUMBIA UNDER LAWS APPLICABLE IN THE DISTRICT.
(E) THE COMMISSIONER SHALL SUBMIT TO THE COUNCIL, WITHIN FORTY-FIVE
DAYS AFTER THE DATE OF ENACTMENT OF THIS TITLE, PROPOSED REGULATIONS TO
BE ADOPTED BY THE COUNCIL PURSUANT TO SUBSECTION (C).
(F) CONSISTENT WITH THE PROVISIONS OF THIS ACT AND REGULATIONS OF THE
COUNCIL, THE COMMISSIONER SHALL PROMULGATE NECESSARY REGULATIONS AND
ADMINISTRATIVE ORDERS. IF THE COUNCIL SHALL NOT HAVE ADOPTED
REGULATIONS CONCERNING ASSESSMENT PURSUANT TO SUBSECTION (C) WITHIN
NINETY DAYS AFTER THE DATE OF ENACTMENT OF THIS TITLE, THE COMMISSIONER
SHALL PROMULGATE SUCH REGULATIONS.
SEC. 422. (A) THE COMMISSIONER SHALL ASSES ALL REAL PROPERTY,
IDENTIFYING SEPARATELY THE VALUE OF LAND AND IMPROVEMENTS THEREON, AND
ADMINISTER AND COLLECT THE REAL PROPERTY TAX WITHIN THE DISTRICT. THE
COMMISSIONER SHALL ALSO NOTIFY OWNERS OF REAL PROPERTY OF ASSESSMENTS
AND OF APPEAL PROCEDURES. IN ADDITION, HE SHALL MAINTAIN ADEQUATE
RECORDS RELATING TO THE ADMINISTRATION OF THE REAL PROPERTY TAX IN THE
DISTRICT, AND PROVIDE APPROPRIATE PUBLIC INFORMATION CONCERNING SUCH
TAX.
(B) THE COMMISSIONER SHALL APPOINT ASSESSORS COMPETENT TO DETERMINE
VALUES OF REAL PROPERTY TO CARRY OUT THE PROVISIONS OF THIS TITLE AND
OTHER RELEVANT PORTIONS OF THIS TITLE. EACH PERSON SO APPOINTED SHALL
TAKE AND SUBSCRIBE AN OATH TO DILIGENTLY, FAITHFULLY, AND IMPARTIALLY
ASSESS ALL REAL PROPERTY ACCORDING TO APPLICABLE LAW AND REGULATIONS AND
OTHERWISE PERFORM THE DUTIES OF OFFICE.
(C) THE COMMISSIONER SHALL ASSURE THAT INFORMATION REGARDING THE
CHARACTERISTICS OF REAL PROPERTY, SALES AND EXCHANGES OF ALL SUCH
PROPERTY, BUILDING PERMITS, LAND USE PLANS, AND ANY OTHER INFORMATION
PERTINENT TO THE ASSESSMENT PROCESS SHALL BE MADE AVAILABLE TO THE
ASSESSORS ON A TIMELY BASIS.
SEC. 423. "D.C. CODE 47 - 643." ALL REAL PROPERTY, EXCEPT AS
HEREINAFTER PROVIDED, SHALL BE ASSESSED IN THE NAME OF THE OWNER, OR
TRUSTEE OR TRUSTEES OF THE OWNER THEREOF. ALL UNDIVIDED REAL PROPERTY
OF A DECEASED PERSON MAY BE ASSESSED IN THE NAME OF THE DECEASED PERSON
UNTIL SUCH UNDIVIDED REAL PROPERTY IS DIVIDED ACCORDING TO LAW, OR HAS
OTHERWISE PASSED INTO THE POSSESSION OF SOME OTHER PERSON; AND ALL REAL
PROPERTY, THE OWNERSHIP OF WHICH IS UNKNOWN, SHALL BE ASSESSED AS OWNER
UNKNOWN.
(B) ALL REAL PROPERTY, WHETHER TAXABLE OR NOT, SHALL BE ASSESSED
ACCORDING TO THE ADDRESS AND THE NUMBER OF THE SQUARES AND LOTS THEREOF,
OR PART OF LOTS, AND UPON THE NUMBER OF THE SQUARE OR SUPERFICIAL FEET
IN EACH SQUARE OR LOTS OR PART OF A LOT.
SEC. 424. "D.C. CODE 47 - 644." (A) THE COMMISSIONER SHALL ON OR
BEFORE MARCH 1 OF EACH YEAR, COMPILE IN TABULAR FORM AND PLACE IN A
BOOK, KNOWN AS THE PRELIMINARY ASSESSMENT ROLL, THE NAME OF THE OWNER,
ADDRESS, LOT AND SQUARE, AMOUNT, DESCRIPTION, AND VALUE, AS OF JANUARY 1
OF THAT YEAR, OF THE LAND AND IMPROVEMENTS OF ALL REAL PROPERTY WHETHER
SUCH PROPERTY IS TAXABLE OR EXEMPT.
(B) THE PRILIMINARY ASSESSMENT ROLL, TOGETHER WITH ALL MAPS, FIELD
BOOKS, ASSESSMENT-SALES RATIO STUDIES, SURVEYS, AND PLATS, SHALL BE OPEN
TO PUBLIC INSPECTION DURING NORMAL BUSINESS HOURS. IN ADDITION, ANY
NOTES AND MEMORANDUMS RELATING TO THE ASSESSMENT OF HIS REAL PROPERTY,
OR A STATEMENT CLEARLY INDICATING THE BASIS UPON WHICH HIS REAL PROPERTY
HAS BEEN ASSESSED, SHALL BE OPEN TO INSPECTION BY THE TAXPAYER OR HIS
DESIGNATED REPRESENTATIVE DURING NORMAL BUSINESS HOURS. PROVISION SHALL
BE MADE TO FURNISH COPIES OF ALL MATERIAL TO ANY PERSON, UPON REQUEST,
AT THE LOWEST CHARGE WHICH COVERS COST OF MAKING SUCH COPIES.
(C) THE COMMISSIONER SHALL UNDERTAKE, PUBLISH, AND OTHERWISE
PUBLICIZE THE RESULTS OF ASSESSMENT-SALES RATIO STUDIES FOR DIFFERENT
TYPES OF REAL PROPERTY FOR THE ENTIRE DISTRICT AND FOR DIFFERENT TYPES
OF REAL PROPERTY WITHIN EACH OF THE DISTRICTS UTILIZED IN MAKING
ASSESSMENTS. IF, FOR A GIVEN YEAR, ADEQUATE SALES DATA ARE LACKING FOR
PARTICULAR STUDIES, THE COMMISSIONER SHALL SO INDICATE.
(D) THE COMMISSIONER SHALL, EITHER HIMSELF OR IN A NEWSPAPER OF
GENERAL CIRCULATION, PUBLISH A LISTING OF THE ASSESSED VALUE OF EACH
PROPERTY BY ADDRESS, LOT, AND SQUARE, AND HE SHALL ALSO MAKE SUCH
LISTING AVAILABLE AT THE MAIN PUBLIC LIBRARY IN THE DISTRICT AND AT SUCH
OTHER POINTS AS HE MAY DETERMINE. SUCH PUBLICATION CAN BE BY
NEIGHBORHOOD AREAS SO LONG AS MAPS SHOWING THE ASSESSMENT AREAS ARE
GENERALLY AVAILABLE.
SEC. 425. "D.C. CODE 47 - 645." BEGINNING AS SOON AS POSSIBLE AFTER
JANUARY 1, BUT NO LATER THAN MARCH 1 OF EACH YEAR, EACH TAXPAYER SHALL
BE NOTIFIED OF THE ASSESSMENT OF HIS REAL PROPERTY FOR THE NEXT FISCAL
YEAR. THE NOTICE, OR STATEMENT ACCOMPANYING THE NOTICE, SHALL
INCLUDE--,
(1) THE ADDRESS, LOT, SQUARE, AND TYPE OF LAND USE BY MAJOR
CATEGORY OF THE PROPERTY;
(2) THE ASSESSED VALUE OF THE LAND AND IMPROVEMENTS (SHOWN
SEPARATELY AND IN TOTAL) OF THE PROPERTY FOR THE NEXT FISCAL YEAR
AND SUCH AMOUNTS FOR THE PREVIOUS FISCAL YEAR;
(3) THE AMOUNT AND PERCENTAGE OF CHANGE IN ASSESSED VALUE OVER
THE PREVIOUS YEAR;
(4) AN INDICATION OF THE REASON FOR SUCH CHANGE IN ASSESSMENT,
SUCH AS, BUT NOT LIMITED TO, IMPROVEMENTS TO THE PROPERTY, ZONING
CHANGE, CHANGING MARKET VALUES;
(5) STATEMENT OF APPEAL PROCEDURES PURSUANT TO SECTION
426 (I);
(6) THE CITATION TO THE REGULATIONS OR ORDERS UNDER WHICH THE
PROPERTY WAS ASSESSED;
(7) THE LOCATION OF THE ASSESSMENT ROLL, STUDIES, AND NOTES
REFERRED TO IN SECTIONS 424 AND 426(G) AND THE HOURS DURING WHICH
THE INFORMATION IS AVAILABLE;
(8) THE AVAILABILITY OF A LISTING OF THE ASSESSED VALUE OF
PROPERTY REFERRED TO IN SECTION 424 (C) ; AND
(9) AN EXPLANATION OF ALL SPECIAL BENEFITS, INCENTIVES,
LIMITATIONS, OR CREDITS WHICH RELATE TO REAL PROPERTY TAXES AS
A RESULT OF THIS OR ANY OTHER ACT.
SEC. 426. "D.C. CODE 47 - 646." (A) THERE IS ESTABLISHED A BOARD OF
EQUALIZATION AND REVIEW FOR THE DISTRICT (HEREINAFTER IN THIS TITLE
REFERRED TO AS THE "BOARD") WHICH SHALL BE COMPOSED OF FIFTEEN MEMBERS,
A MAJORITY OF WHOM SHALL BE RESIDENTS OF THE DISTRICT, APPOINTED BY THE
COMMISSIONER, WITH THE ADVICE AND CONSENT OF THE COUNCIL. THE COUNCIL
MAY AUTHORIZE A LARGER SIZE IF THE CASELOAD SO REQUIRES. MEMBERS OF THE
BOARD SHALL BE PERSONS HAVING KNOWLEDGE OF THE VALUATION OF PROPERTY,
REAL ESTATE TRANSACTIONS, BUILDING COSTS, ACCOUNTING, FINANCE, OR
STATISTICS. THE COMMISSIONER SHALL NAME ONE MEMBER AS CHAIRMAN. NONE
OF THE MEMBERS MAY BE OFFICERS OF THE DISTRICT OF COLUMBIA GOVERNMENT.
EACH MEMBER SHALL SERVE FOR A TERM OF FIVE YEARS, EXCEPT OF THE MEMBERS
FIRST APPOINTED UNDER THIS SECTION, THE COMMISSIONER SHALL DESIGNATE
EQUAL NUMBERS FOR TERMS OF ONE, TWO, THREE, FOUR, AND FIVE YEARS. THE
TERMS OF THE MEMBERS FIRST APPOINTED UNDER THIS SECTION SHALL BEGIN ON
JANUARY 1, 1975. ANY PERSON APPOINTED TO FILL A VACANCY SHALL BE
APPOINTED TO SERVE FOR THE REMAINDER OF THE TERM DURING WHICH THE
VACANCY AROSE. EACH MEMBER SHALL RECEIVE COMPENSATION AT A RATE TO BE
DETERMINED BY THE COUNCIL UNLESS OTHERWISE PROHIBITED BY LAW, BUT NOT TO
EXCEED ONE TWO-THOUSANDTH OF THE ANNUAL SALARY OF THE HIGHEST STEP OF
GRADE 15 OF THE GENERAL SCHEDULE IN SECTION 5332 OF TITLE 5 OF THE
UNITED STATES CODE "5 USC 5332 NOTE." FOR EACH HOUR SUCH MEMBER IS
ENGAGED IN THE ACTUAL PERFORMANCE OF DUTIES VESTED IN THE BOARD.
(B) THE COMMISSIONER SHALL PROVIDE SUCH OTHER SUPPORT AS IS NEEDED
FOR THE EFFECIENT OPERATION OF THE BOARD.
(C) THE BOARD SHALL CONVENE AS BUSINESS NECESSITATES FROM THE FIRST
MONDAY IN JANUARY UNTIL THE COMMISSIONER SHALL BE PRESENTED WITH THE
ASSESSMENT ROLL FOR THE FISCAL YEAR AS PROVIDED IN SUBSECTION (G). THE
BOARD SHALL ALSO CONVENE AS BUSINESS NECESSITATES FOR A PERIOD OF THIRTY
DAYS FOLLOWING ANY SPECIAL ASSESSMENT WHICH SHALL BE GENERALLY
APPLICABLE TO A CLASS OF REAL PROPERTY, AND AS BUSINESS IN THE BOARD
OTHERWISE MAKE NECESSARY.
(D) A MAJORITY OF THE BOARD SHALL CONSTITUTE A QUORUM FOR TRACSACTING
BUSINESS, EXCEPT THE BOARD MAY PROVIDE FOR THE ESTABLISHMENT OF THREE
MEMBER PANELS FOR HEARING AND DECIDING INDIVIDUAL APPEALS. THE BOARD
SHALL ADPOT AND PUBLISH NECESSARYRULES, AND ALL APPLICABLE PROVISIONS OF
THE DISTRICT OF COLUMBIA ADMINISTRATIVE PROCEDURES ACT (D.C. CODE, SECS.
1 - 1501-- 1 - 1510) "82 STAT. 1203." SHALL APPLY TO THE RULES AND
PROCEDURE OF THE BOARD.
(E) ON OR BEFORE APRIL 15 OF EACH YEAR ANY TAXPAYER MAY APPEAL THE
AMOUNT OF HIS ASSESSMENT FOR THE FORTHCOMING FISCAL YEAR.
(F) PURSUANT TO APPLICABLE PROVISIONS OF LAW, REGULATIONS ADOPTED BY
THE COUNCIL, OR ORDERS OF THE COMMISSIONER, THE BOARD SHALL ATTEMPT TO
ASSURE THAT ALL REAL PROPERTY IS ASSESSED AT THE ESTIMATED MARKET VALUE.
BASED ON THE RECORD OF COMPLAINTS OR OF OTHER INFORMATION AVAILABLE TO
OR SOLICITED BY THE BOARD, THE BOARD SHALL RAISE OR LOWER THE ESTIMATED
MARKET VALUE OF ANY REAL PROPERTY WHICH IT FINDS TO BE MORE THAN 5 PER
CENTUM ABOVE OR BELOW THE ESTIMATED MARKET VALUE CONTAINED IN THE
PRELIMINARY ASSESSMENT ROLL PREPARED BY THE COMMISSIONER ACCORDING TO
SECTION 423 AND SHALL REVISE THE ASSESSMENT ROLL ACCORDINGLY.
(G) ON OR BEFORE JUNE 1 THE BOARD SHALL PRESENT THE REVISED
ASSESSMENT ROLL FOR THE FORTHCOMING FISCAL YEAR TO THE COMMISSIONER.
THE COMMISSIONER SHALL MAKE SUCH FURTHER REVISIONS TO THE ASSESSMENT
ROLL AS ARE REQUIRED UNDER OTHER APPLICABLE PROVISIONS OF LAW, AND SHALL
APPROVE SUCH ASSESSMENT ROLL NOT LATER THAN JUNE 30. EXCEPT AS
OTHERWISE PROVIDED BY LAW, THE APPROVED ASSESSMENT ROLL SHALL CONSTITUTE
THE BASIS OF ASSESSMENT FOR THE FORTHCOMING FISCAL YEAR AND UNTIL
ANOTHER ASSESSMENT ROLL IS MADE ACCORDING TO LAW.
(H) NEITHER THE BOARD NOR ANY COURT SHALL ORDER THE INCREASE OF THE
ASSESSED VALUE OF ANY PARCEL OF REAL PROPERTY ABOVE ITS ESTIMATED MARKET
VALUE, NOR THE DECREASE OF THE ASSESSED VALUE OF ANY PARCEL OF REAL
PROPERTY BELOW ITS ESTIMATED MARKET VALUESOLELY ON THE BASIS OF AVERAGE
RATIO STUDIES COMPARING SALES AND ASSESSMENTS, UNLESS SUCH STUDIES ARE
THE PRIMARY BASIS FOR THE ASSESSMENT, OR REASSESSMENT OF THE CONCERNED
PROPERTY.
(I) ANY PERSON AGGRIEVED BY ANY ASSESSMENT, EQUALIZATION, OR
VALUATION MADE, MAY, BY OCTOBER 15 OF THE CALENDAR YEAR IN WHICH SUCH
ASSESSMENT, EQUALIZATION, OR VALUATION IS MADE, APPEAL FROM SUCH
ASSESSMENT, EQUALIZATION, OR VALUATION IN THE SAME MANNER AND TO THE
SAME EXTENT AS PROVIDED IN SECTIONS 3 AND 14 OF TITLE IX OF THE ACT OF
AUGUST 17, 1937 (D.C. CODE, SECS. 47 - 2404, 47 - 24143), "84 STAT.
579, 580, D.C. CODE 47 - 2413." IF SUCH PERSON SHALL HAVE FIRST MADE HIS
COMPLAINT TO THE BOARD RESPECTING SUCH ASSESSMENT AS HEREIN PROVIDED,
EXCEPT THAT IN ANY CASE WHERE NO NOTICE IN WRITING OF SUCH INCREASE OF
VALUATION WAS GIVEN THE TAXPAYER PRIOR TO MARCH 15 OF THE PARTICULAR
YEAR, NO SUCH COMPLAINT SHALL BE REQUIRED FOR APPEAL.
SEC. 427. "D.C. CODE 47 - 647." EACH ASSESSOR OF THE DISTRICT, AND
EACH ASSISTANT ASSESSOR, IN THE DISCHARGE OF ANY OF HIS DUTIES, OR THE
BOARD, MAY ADMINISTER ALL NECESSARY OATHS OR AFFIRMATIONS. THE
COMMISSIONER OR, IN HIS ABSENCE, HIS DESIGNATED AGENT, AND THE CHAIRMAN
OF THE BOARD, SHALL HAVE POWER TO SUMMON THE ATTENDANCE OF ANY PERSON TO
BE EXAMINED UNDER OATH TOUCHING SUCH MATTERS AND THINGS AS THE
COMMISSIONER OR THE BOARD MAY DEEM ADVISABLE IN THE DISCHARGE OF THEIR
DUTIES; AND ANY MEMBER OF THE METROPOLITAN POLICE FORCE OF THE DISTRICT
OF COLUMBIA MAY SERVE SUBPENAS IN HIS BEHALF. SUCH FEES SHALL BE
ALLOWED WITNESSES SO EXAMINED, TO BE PAID OUT OF FUNDS AVAILABLE TO THE
COMMISSIONER, AS ARE ALLOWED IN CIVIL ACTIONS BEFORE THE UNITED STATES
DISTRICT COURT FOR THE DISTRICT OF COLUMBIA. ANY PERSON SUMMONED AND
EXAMINED AS AFORESAID WHO SHALL KNOWINGLY MAKE FALSE OATH OR AFFIRMATION
SHALL BE GUILTY OF PERJURY, AND UPON CONVICTION THEREOF BE PUNISHED
ACCORDING TO THE LAWS IN FORCE FOR THE PUNISHMENT OF PERJURY.
SEC. 428. //D.C. CODE 47 - 648.// WITHIN ONE YEAR AFTER THE DATE OF
ENACTMENT OF THIS TITLE THE SUPERIOR COURT OF THE DISTRICT OF COLUMBIA
SHALL ESTABLISH A MITHOD WHICH IT DEEMS APPROPRIATE BY WHICH CLASS
ACTION CASES REGARDING ANY MATTER RELATING TO REAL AND PERSONAL PROPERTY
TAXES MAY BE BROUGHT BEFORE THE SUPERIOR COURT.
SEC. 429. //D.C. CODE 47 - 649.// ANY PERSON WHO SHALL REFUSE OR
KNOWINGLY NEGLECT TO PERFORM ANY DUTY ENJOINED ON HIM BY LAW, OR WHO
SHALL CONSENT TO OR CONNIVE AT ANY EVASION OF THE PROVISION OF THE FIRST
SECTION OF THE ACT OF MARCH 3, 1881 (D.C. CODE, DEC. 47 - 209), "21
STAT. 460, D.C. CODE 47 - 301." OR SECTION 13 OF THE ACT OF AUGUST 14,
1894 (D.C. CODE, SEC. 47 - 606, "28 STAT. 285." OR ANY OTHER PROVISION
OF THIS TITLE SHALL, FOR EACH OFFENSE, BE REMOVED FROM OFFICE AND FINED
NOT MORE THAN $10,000, OR IMPRISONED FOR NO LONGER THAN ONE YEAR, OR
BOTH, IN THE DISCRETION OF THE COURT.
SEC. 430. "D.C. CODE 47 - 650." (A) IN ORDER THAT THE SHIFT TO
EQUALIZED ASSESSMENT AT THE SAME PERCENTAGE OF ESTIMATED MARKET VALUE
FOR ALL PROPERTIES NOT RESULT IN INCREASES IN PROPORTIONATE TAX BURDEN
FOR HOUSEHOLDS OF LOW OR MODERATE INCOME WHO OWN OR RENT PROPERTY
IDENTIFIED ON THE ASSESSMENT ROLLL AS ROW DWELLINGS, DETACHED DWELLINGS,
OR SEMI-DETACHED DWELLINGS, THE COUNCIL BY REGULATION IS AUTHORIZED TO
PROVIDE THAT THE AMOUNT OF UP TO $3,000 OF MARKET VALUE MAY BE DEDUCTED
FROM THE ESTIMATED MARKET VALUE OF SOME OR ALL OF SUCH PROPERTY.
(B) SUBSECTION (A) SHALL TAKE EFFECT ON AND AFTER JULY 1, 1974.
SEC. 431. "D.C. CODE 47 - 651." (A) THE COUNCIL SHALL, WITHIN ONE
YEAR AFTER THE DATE OF ENACTMENT OF THIS TITLE, AFTER PUBLIC HEARING,
ADOPT REGULATIONS PROVIDING TAX INCENTIVES FOR THE REHABILITATION OF
EXISTING STRUCTURES AND FOR NEW CONSTRUCTION, INCLUDING REHABILITATION
OR CONSTRUCTION OF COMMERCIAL PROPERTY, LOCATED IN AREAS OF THE DISTRICT
AS DESIGNATED BY THE COUNCIL. THE COUNCIL SHALL ALSO ADOPT REGULATIONS
PROVIDING TAX INCENTIVES FOR THE REHABILITATION AND MAINTENANCE OF
HISTORIC PROPERTY. SUCH TAX INCENTIVES MAY INCLUDE, BUT ARE NOT LIMITED
TO--,
(1) ESTABLISHING DIFFERENT TAX RATES FOR LAND AND FOR
IMPROVEMENTS THEREON; AND
(2) PROVIDING THAT ANY INCREASE IN ASSESSED VALUE OF
IMPROVEMENTS RESULTING FROM REHABILITATION OR NEW CONSTRUCTION BE
IGNORED FOR TAX PURPOSES FOR UP TO FIVE YEARS FROM THE YEAR OF
SUCE REASSESSMENT.
(B) TO BE ELEGIBLE FOR INCENTIVE UNDER THIS SECTION, HISTORIC
PROPERTY MUST BE PROPERTY DESIGNATED AS AN HISTORIC LANDMARK AND CONFORM
TO THE PROVISIONS OF SUBPART E.
SUBPART E--TAX RELIEF FOR CERTAIN HISTORIC PROPERTIES
SEC. 432. "D.C. CODE 47 - 652." FOR CERTAIN OFFICIALLY DESIGNATED
HISTORIC PROPERTY IN THE DISTRICT, THE COMMISSIONER SHALL, IN ADDITION
TO ASSESSING AT FULL MARKET VALUE, ASSESS LAND AND IMPROVEMENT ON THE
BASIS OF CURRENT USE AND STRUCTURES OF THE PROPERTY, WHICH LATTER
ASSESSMENT, IF IT IS LESS THAN FULL MARKET VALUE, SHALL BE THE BASIS OF
TAX LIABILITY TO THE DISTRICT.
SEC. 433. "D.C. CODE 47 - 653." TO BE ELIGIBLE FOR HISTORIC PROPERTY
TAX RELIEF, REAL PROPERTY MUST BE HISTORIC PROPERTY DESIGNATED BY THE
JOINT COMMITTEE ON LAND MARKS OF THE NATIONAL CAPITAL PLANNING
COMMISSION AND THE COMMISSION ON FINE ARTS, AND, IN ADDITION, MUST BE
APPROVED BY THE COMMISSIONER UNDER SECTION 434.
SEC. 434. "D.C. CODE 47 - 654." THE COUNCIL MAY PROVIDE THAT THE
OWNERS OF PROPERTIES WHICH HAVE BEEN DESIGNATED HISTORIC LANDMARKS BY
THE JOINT COMMITTEE ON LANDMARKS OF THE NATIONAL CAPITAL PLANNING
COMMISSION AND THE COMMISSION OF FINE ARTS MAY ENTER INTO AGREEMENTS
WITH THE GOVERNMENT OF THE DISTRICT OF COLUMBIA FOR PERIODS OF AT LEAST
TWENTY YEARS WHICH WILL ASSURE THE CONTINUED MAINTENANCE OF HISTORIC
PROPERTIES IN RETURN FOR PROPERTY TAX RELIEF. SUCH A PROVISION SHALL,
AS A CONDITION FOR TAX RELIEF, REQUIRE REASONABLE ASSURANCE THAT SUCH
PROPERTY WILL BE USED AND PROPERLY MAINTAINED AND SUCH OTHER CONDITIONS
AS THE COUNCIL FINDS TO BE NECESSARY TO ENCOURAGE THE PRESERVATION OF
HISTORIC PROPERTY. THE COUNCIL SHALL ALSO PROVIDE FOR THE RECOVERY OF
BACK TAXES, WITH INTEREST, WHICH WOULD HAVE BEEN DUE AND PAYABLE IN THE
ABSENCE OF THE EXEMPTION, IF THE CONDITIONS FOR SUCH EXEMPTION ARE NOT
FULFILLED.
SUBPART F--TAX DEFERRAL
SEC. 435. "D.C. CODE 47 - 655." (A) AN ELIGIBLE TAXPAYER MAY DEFER
EACH YEAR ANY REAL PROPERTY TAX OWED IN EXCESS OF 110 PER CENTUM OF HIS
IMMEDIATELY PRECEDING YEAR'S REAL PROPERTY TAX LIABILITY. TO BE
ELIGIBLE FOR SUCH DEFERRAL THE TAXPAYER MUST--,
(1) HAV OWNED FOR AT LEAST FIVE YEARS THE RESIDENTIAL REAL
PROPERTY FOR WHICH DEFERRAL IS CLAIMED;
(2) CERTIFY THAT THE COMBINED HOUSEHOLD ADJUSTED GROSS INCOME
(FOR PURPOSES OF DISTRICT INCOME TAXES) DOES NOT EXCEED $20,000 IN
ONE YEAR;
(3) FILE A WRITTEN REQUEST FOR DEFERRAL OF A FORM PRESCRIBED BY
THE COMMISSIONER;
(4) CERTIFY THAT SUCH RESIDENTIAL REAL PROPERTY IS THE PRINCIP
PRINCIPAL PLACE OF RESIDENCE OF THE TAXPAYER;
(5) CERTIFY THAT THE ZONING CLASSIFICATION OF SUCH
RESIDENTIAL PROPERTY HAS NOT CHANGED IN THE IMMEDIATELY PAST
FISCAL YEAR;
(6) CERTIFY THAT INCREASES IN THE ASSESSED VALUATION OF SUCH
RESIDENTIAL REAL PROPERTY ATTRIBUTABLE TO IMPROVEMENTS WHICH
INCREASE THE INTRINSIC VALUE OF SUCH RESIDENTIAL REAL PROPERTY ARE
NOT INCLUDED IN THE CALCULATION OF THE INCREASE IN REAL PROPERTY
TAX PAYABLE; AND
(7) CERTIFY THAT THE ASSESSMENT OF SUCH RESIDENTIAL REAL
PROPERTY FOR THE IMMEDIATELY PREVIOUS FISCAL YEAR WAS NOT THE
RESULT OF AN OBVIOUS ARITHMETICAL ERROR.
(B) TAXES DEFERRED UNDER THIS SECTION SHALL BEAR INTEREST COMPOUNDED
ANNUALLY. THE RATE OF INTEREST WHICH SHALL BE APPLIED IN EACH YEAR
SHALL BE THE AVERAGE TREASURY BILL RATE FOR THE PRECEDING TWELVE MONTHS
AS CERTIFIED BY THE SECRETARY OF THE TREASURY TO THE COMMISSIONER.
(C) NO FURTHER DEFERRALS OF REAL PROPERTY TAX SHALL BE GRANTED A
TAXPAYER WHEN HIS DEFERRED TAX PLUS INTEREST EQUALS MORE THAN 10 PER
CENTUM OF THE CURRENT ASSESSED VALUE OF HIS PROPERTY.
(D) TAXES DEFERRED UNDER THIS SECTION, TOGETHER WITH ALL ACCUMULATED
INTEREST, SHALL CONSTITUTE A PREFERENTIAL LIEN UPON THE REAL PROPERTY
WHICH SHALL BE IMMEDIATELY PAYABLE BY THE SELLER, TRANSFEROR, OR
CONVEYOR WHENEVER THE REAL PROPERTY IS SOLD, REFINANCED, TRANSFERRED, OR
CONVEYED IN ANY MANNER, OR WHENEVER ADDITIONAL CO-OWNERS (OTHER THAN
SPOUSE) ARE ADDED TO THE REAL PROPERTY.
SEC. 436. "D.C. CODE 47 - 656." (A) ANY OWNER OF RESIDENTIAL REAL
PROPERTY WHOSE COMBINED HOUSEHOLD ADJUSTED GROSS INCOME IS IN EXCESS OF
$20,000, AND WHO MEETS THE QUALIFICATIONS SPECIFIED IN CLAUSES (1), (3),
(4), (5), AND (6) OF SUBSECTION (A) OF SECTION 435, MAY DEFER THE AMOUNT
OF REAL PROPERTY TAX ATTRIBUTABLE TO AN INCREASE BY MORE THAN 25 PER
CENTUM IN ANY ONE YEAR OVER THE ASSESSMENT OF THE IMMEDIATELY PREVIOUS
FISCAL YEAR. FOR THE PURPOSES OF THIS SECTION AND SECTION 435, FOR THE
FISCAL YEAR 1975 THE ASSESSED VALUE OF ALL PROPERTIES ASSESSED AT 55 PER
CENTUM OF ESTIMATED MARKET VALUE SHALL BE THE ASSESSED VALUE OF THE
PROPERTY DIVIDED BY 0.55.
(B) TAXES DEFERRED UNDER THIS SECTION SHALL BEAR INTEREST COMPOUNDED
ANNUALLY. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE RATE OF
INTEREST WHICH SHALL BE APPLIED IN EACH YEAR IS THE AVERAGE TREASURY
BILL RATE FOR THE PRECEDING TWELVE MONTHS AS CERTIFIED BY THE SECRETARY
OF THE TREASURY TO THE COMMISSIONER.
(C) NO FURTHER DEFERRALS OF REAL PROPERTY TAX SHALL BE GRANTED A
TAXPAYER WHEN HIS DEFERRED TAX PLUS INTEREST EQUALS MORE 10 PER CENTUM
OF THE CURRENT ASSESSED VALUE OF HIS PROPERTY.
(D) TAXES DEFERRED UNDER THIS SECTION, TOGETHER WITH ALL ACCUMULATED
INTEREST, SHALL CONSTITUTE A PREFERENTIAL LIEN UPON THE PROPERTY WHICH
SHALL BE IMMEDIATELY PAYABLE BY THE SELLER, TRANSFEROR, OR CONVEYOR
WHENEVER THE PROPERTY IS SOLD, REFINANCED, TRANSFERRED, OR CONVEYED IN
ANY MANNER, OR WHENEVER ADDITIONAL CO-OWNERS (OTHER THAN SPOUSE) ARE
ADDED TO THE PROPERTY.
(E) THE DEFERRAL PROVIDED IN THIS SECTION SHALL TERMINATE JUNE 30,
1979 UNLESS SPECIFICALLY EXTENDED BY THE COUNCIL.
SEC. 437. "D.C. CODE 47 - 657." NOTWITHSTANDING ANY OTHER PROVISION
OF LAW, WHENEVER ANY REAL PROPERTY IN THE DISTRICT OF COLUMBIA HAS BEEN,
OR SHALL HEREINAFTER BE, OFFERED FOR SALE FOR NONPAYMENT OF TAXES OR
ASSESSMENTS OF ANY KIND WHATSOEVER, AND SHALL HAVE BEEN BID OFF IN THE
NAME OF THE DISTRICT OF COLUMBIA, AND TWO YEARS OR MORE HAVE ELAPSED
SINCE SUCH PROPERTY WAS BID OFF AS AFORESAID, AND THE SAME HAS NOT BEEN
REDEEMED AS PROVIDED BY LAW, THE COMMISSIONER OF THE DISTRICT MAY
ENFORCE THE LIEN OF THE DISTRICT FOR TAXES OR OTHER ASSESSMENTS ON SUCH
REAL PROPERTY BY ORDERING THAT A DEED IN FEE SIMPLE TO SUCH PROPERTY BE
ISSUED BY THE COMMISSIONER OF THE DISTRICT OF COLUMBIA TO THE DISTRICT
OF COLUMBIA, AND UP TO THE TIME OF THE ISSUANCE OF THE DEED SUCH
PROPERTY MAY BE REDEEMED BY THE OWNER OR OTHER PERSON HAVING AN INTEREST
THEREIN BY THE PAYMENT OF ALL TAXES OR ASSESSMENTS DUE THE DISTRICT OF
COLUMBIA UPON SAID PROPERTY, AND ALL LEGAL PENALTIES, INTEREST AND COSTS
THEREON, TOGETHER WITH SUCH OTHER EXPENSES AND COSTS, INCLUDING COSTS OF
PUBLICATION, AS MAY HAVE BEEN INCURRED BY THE DISTRICT.
SEC. 438. "D.C. CODE 47 - 658." THE COUNCIL IS HEREBY AUTHORIZED TO
ESTABLISH A PROGRAM WHEREBY TITLE TO PROPERTIES ACQUIRED BY TAX PURSUANT
TO SECTION 437 MAY, FOR WHATEVER SUM IT DEEMS APPROPRIATE, BE
TRANSFERRED TO PERSONS MEETING CRITERIA WHICH SHALL BE RSTABLISHED BY
THE COUNCIL, WHO GUARANTEE TO PAY TAXES ON AND TO LIVE IN THE PROPERTY
FOR AT LEAST FIVE YEARS, AND WHO GIVE ASSURANCE OF BRINGING SUCH
PROPERTY INTO REASONABLE COMPLIANCE WITH THE BUILDING CODE IN THE
DISTRICT.
SEC. 411. THE FIRST SECTION OF THE ACT OF DECEMBER 24, 1942 (D.C.
CODE, SEC. 47 - 801 (A)) "56 STAT. 1089, D.C. CODE 47 - 801A." IS
AMENDED, ON AND AFTER JULY 1, 1974, BY ADDING AT THE END THEREOF THE
FOLLOWING:
"(S) BUILDINGS OWNED BY AND ACTUALLY OCCUPIED AND USED FOR LEGITIMATE
THEATER, MUSIC, OR DANCE PURPOSES BY A CORPORATION WHICH IS NOT
ORGANIZED OR OPERATED FOR COMMERCIAL PURPOSES OR FOR PRIVATE GAIN, WHICH
BUILDINGS ARE OPEN TO THE PUBLIC, GENERALLY, AND FOR ADMISSION TO WHICH
CHARGES MAY BE MADE TO COVER THE COST OF EXPENSES."
SEC. 442. THE COMMISSIONER SHALL PUBLISH, BY CLASS AND BY INDIVIDUAL
PROPERTY, A LISTING OF ALL REAL PROPERTY EXEMPT FROM THE REAL PROPERTY
TAX IN THE DISTRICT. SUCH LISTING SHALL INCLUDE THE ADDRESS, LOT, AND
SQUARE, THE NAME OF THE OWNER, THE ASSESSED VALUE OF THE LAND AND "D.C.
CODE 47 - 801-1." IMPROVEMENTS OF SUCH PROPERTY, AND THE AMOUNT OF THE
TAX EXEMPTION IN THE PREVIOUS FISCAL YEAR.
SEC. 451. EFFECTIVE JANUARY 1, 1975, TITLE VI OF THE DISTRICT OF
COLUMBIA INCOME AND FRANCHISE ACT OF 1947 "61 STAT. 343; 83 STAT. 179,
D.C. CODE 47 - 1567." IS AMENDED BY ADDING AT THE END THEREOF THE
FOLLOWING NEW SECTION:
"SEC. 7. "D.C. CODE 47 - 1567G." CREDIT FOR PROPERTY TAXES ACCRUED
AND PAYABLE BY DISTRICT OF COLUMBIA RESIDENTS.--(A)(1) FOR PUROPSES OF
PROVIDING RELIEF TO CERTAIN DISTRICT OF COLUMBIA RESIDENTS WHO OWN OR
RENT THEIR PRINCIPLE PLACE OF ABODE AND WHO RESIDE IN SAME, A CREDIT
SHALL BE ALLOWED TO THE ELIGIBLE CLAIMANT EQUAL TO THE AMOUNT BY WHICH
ALL OR A PORTION OF REAL PROPERTY TAXES THE TAXPAYER PAYS, OR RENT PAID
CONSTITUTING PROPERTY TAXES, ON HIS PRINCIPAL PLACE OF RESIDENCE FOR THE
TAXABLE YEAR, EXCEEDS A PERCENTAGE (DETERMINED UNDER SUBSECTION (A)(2))
OF HIS HOUSEHOLD GROSS INCOME FOR THAT YEAR.
"(2) THE PERCENTAGE REQUIRED UNDER PARAGRAPH (1) OF THIS SUBSECTION
TO BE DETERMINED UNDER THIS SUBSECTION FOR TAXPAYERS SHALL BE THE
PERCENTAGE SPECIFIED IN THE FOLLOWING TABLE:
" (B) DEFINITIONS.--FOR PURPOSES OF THIS SECTION:
"(1)(A) THE TERM 'HOUSEHOLD GROSS INCOME' MEANS GAINS, PROFITS, AND
INCOME DERIVED FROM SALARIES, WAGES, OR COMPENSATION FOR PERSONAL
SERVICES OF WHATEVER KIND AND IN WHATEVER FORM PAID, INCLUDING SALARIES,
WAGES, AND COMPENSATION PAID BY THE UNITED STATES TO ITS OFFICERS AND
EMPLOYEES, OR INCOME DERIVED FROM ANY TRADE OR BUSINESS OR SALES OR
DEALINGS IN PROPERTY, WHETHER REAL OR PERSONAL, INCLUDING CAPITAL ASSETS
AS DEFINED IN THIS ARTICLE GROWING OUT OF THE OWNERSHIP OF SALE OF OR
INTEREST IN SUCH PROPERTY; INCOME FROM RENT, ROYALTIES, INTEREST,
DIVIDENDS, SECURITIES, OR TRANSACTIONS OF ANY TRADE OR BUSINESS CARRIED
ON FOR GAIN OR PROFIT, OR GAINS OR PROFITS AND INCOME DERIVED FROM ANY
SOURCE WHATEVER, INCLUDING BUT NOT LIMITED TO ALIMONY, AND SEPARATE
MAINTENANCE PAYMENTS (INCLUDING AMOUNTS RECEIVED UNDER SEAPRATE
MAINTENANCE AGREEMENTS), STRIKING BENEFITS, CASH PUBLIC ASSISTANCE AND
RELIEF (NOT INCLUDING RELIEF OR CREDIT GRANTED UNDER THIS SECTION), SICK
PAY, WORKMEN'S COMPENSATION, PROCEEDS OF LIFE INSURANCE POLICIES, THE
GROSS AMOUNT OF ANY PENSION OR ANNUITY (INCLUDING RAILROAD RETIREMENT
BENEFITS, VETERANS' DISABILITY PENSIONS, OR PAYMENT RECEIVED UNDER THE
FEDERAL SOCIAL SECURITY ACT, "49 STAT. 620, 42 USC 1305." STATE OR
DISTRICT OF COLUMBIA UNEMPLOYMENT COMPENSATION LAWS, AND NONTAXABLE
INTEREST RECEIVED FROM THE UNITED STATES, A STATE OR ANY AGENCY OR
INSTRUMENTALITY THEREOF. THE WORD 'INCOME' DOES NOT INCLUDE GIFTS FROM
NONGOVERNMENTAL SOURCES, FOOD STAMPS, OR FOOD OR OTHER RELIEF IN KIND
SUPPLIED BY A GOVERNMENTAL AGENCY.
"(B) IN DETERMINING HOUSEHOLD GROSS INCOME THE EXCLUSIONS FROM GROSS
INCOME AS PROVIDED BY SUBSECTION (B) OF SECTION 2 OF TITLE III OF THIS
ARTICLE SHALL NOT APPLY. "80 STAT. 812, D.C. CODE 47 - 1557A."
"(2) THE TERM 'HOUSEHOLD INCOME' SHALL HAVE THE SAME MEANING AS THE
WORDS 'ADJUSTED GROSS INCOME' ARE DEFINED IN SUBSECTION (C) OF SECTION 2
OF TITLE III OF THIS ARTICLE. FOR PURPOSES OF DETERMINING ADJUSTED
GROSS INCOME WITHIN THE MEANING OF THIS SECTION, GROSS INCOME SHALL MEAN
HOUSEHOLD INCOME AS DEFINED IN THIS SECTION.
"(3) THE TERM 'HOME' MEANS THE CLAIMANT'S DWELLING HOUSE, WHETHER
OWNED OR RENTED BY THE CLAIMANT, AND SO MUCH OF THE LAND SURROUNDING IT
AS IS REASONABLY NECESSARY FOR USE OF THE DWELLING AS A HOME, AND MAY
INCLUDE A MULTIUNIT BUILDING OR A MULTIPURPOSE BUILDING AND A PART OF
THE LAND UPON WHICH IT IS LOCATED.
"(4) THE TERM 'CLAIMANT' MEANS A PERSON WHO HAD FILED A CLAIM UNDER
THIS SECTION, WAS AN OWNER OF RECORD OF A HOME IN THE DISTRICT, OR A
LESSEE, TENANT AT WILL OR TENANT AT SUFFERANCE PAYING RENT ON A HOME IN
THE DISTRICT, DURING THE ENTIRE CALENDAR YEAR PRECEDING THE YEAR IN
WHICH HE FILES A CLAIM FOR RELIEF UNDER THIS SECTION. ONLY ONE CLAIMANT
PER HOME AND PER HOUSEHOLD PER YEAR SHALL BE ENTITLED TO RELIEF UNDER
THIS SECTION.
"(5) (A) THE TERM 'RENT CONSTITUTING PROPERTY TAXES ACCRUED' MEANS 15
PER CENTUM OF THE RENT ACTUALLY PAID BY A CLAIMANT IN CASH OR ITS
EQUIVALENT IN THE CALENDAR YEAR 1975 OR ANY SUBSEQUENT CALENDAR YEAR
SOLELY FOR THE RIGHT TO OCCUPY HIS DISTRICT HOME IN SUCH CALENDAR YEAR,
AND WHICH RENT CONSTITUTES THE BASIS IN THE SUCCEEDING CALENDAR YEAR FOR
THE CLAIM FOR RELIEF MADE BY THE CLAIMANT UNDER THIS SECTION, EXCLUSIVE
OF AMOUNTS WHICH ARE PAID AS RENT OR OTHER CONSIDERATION FOR THE
PROVIDING BY THE LANDLORD OF FURNITURE OR FURNISHINGS OF ANY KIND, AND
EXCLUSIVE OF AMOUNTS INCLUDED IN THE RENT FOR UTILITIES. WHENEVER THE
AMOUNT OF RENT INCLUDES CHARGES FOR THE PROVIDING BY THE LANDLORD OF
FURNITURE OR FURNISHINGS OR CHARGES FOR UTILITIES, AND THE CHARGES
THEREFOR ARE NOT SEPARATELY STATED, THEN THERE SHALL BE DEDUCTED FROM
THE RENT AS THE CHARGE FOR SUCH FURNITURE OR FURNISHINGS 20 PER CENTUM
OF THE RENT, AND FOR UTILITIES 10 PER CENTUM OF THE RENT, AND THE
BALANCE SHALL BE DEEMED TO BE THE AMOUNT PAID BY THE CLAIMANT SOLELY FOR
THE RIGHT TO OCCUPY HIS DISTRICT HOME FOR THE PURPOSES OF THE CREDIT
ALLOWED UNDER THIS SECTION.
"(C) IN THE EVENT THAT ANY INSTALLMENT OF RENT FOR A CALENDAR YEAR
FOR WHICH A CLAIM IS FILED IS PAID PRIOR TO THE BEGINNING OF OR
SUBSEQUENT TO THE END OF SUCH CALENDAR YEAR, IT SHALL BE INCLUDED AS
RENT FOR THE YEAR FOR WHICH THE CLAIM WAS MADE AND FOR NO OTHER YEAR,
AND SHALL NOT BE INCLUDED AS RENT FOR PURPOSES OF THIS SECTION FOR THE
YEAR IN WHICH THE INSTALLMENT WAS PAID.
"(D) IF THE COMMISSIONER DETERMINES THAT THE RENT PAID WAS NOT THE
RESULT OF AN AGREEMENT ENTERED INTO AT ARM'S LENGTH BETWEEN THE TENANT
AND HIS LANDLORD, THE COMMISSIONER MAY ADJUST THE RENT TO A REASONABLE
AMOUNT FOR THE PURPOSES OF THIS SECTION.
"(E) (1) BEGINNING WITH THE CALENDAR YEAR 1975 AND FOR EACH
SUCCEEDING CALENDAR YEAR, IF A CLAIMANT OWNS AND OCCUPIES HIS HOME IN
THE DISTRICT ON JULY 1 OF ANY SUCH YEAR,'PROPERTY TAXES ACCRUED' MEANS
PROPERTY TAXES (EXCLUSIVE OF SPECIAL ASSESSMENTS, INTEREST ON A
DELINQUENCY IN PAYMENT OF TAX, AND ANY PENALTIES AND SERVICE CHARGES)
ASSESSED AND PAID TO DATE AGAINST SUCH HOME COMMENCING JANUARY 1, 1975,
AND FOR SUCCEEDING YEARS. IF A HOME IS AN INTEGRAL PART OF A LARGER
UNIT SUCH AS A MULTIPURPOSE BUILDING OR A MULTIDWELLING BUILDING,
PROPERTY TAXES ACCRUED SHALL BE THAT PERCENTAGE OF THE TOTAL PROPERTY
TAXES ACCRUED AS THE VALUE OF THE HOME BEARS TO THE TOTAL VALUE OF THE
PROPERTY.
"(2) WHEN A CLAIMANT RENTS TWO OR MORE DIFFERENT HOMES IN THE
DISTRICT IN THE SAME CALENDAR YEAR, RENT PAID BY THE CLAIMANT DURING
THAT YEAR SHALL BE DETERMINED BY DIVIDING THE RENT PAID PURSUANT TO THE
LAST RENTAL AGREEMENT IN FORCE DURING THAT CALENDAR YEAR BY THE NUMBER
OF MONTHS DURING THAT CALENDAR YEAR FOR WHICH THIS RENT WAS PAID AND
MULTIPLYING THE RESULT BY TWELVE.
"(F) THE RIGHT TO FILE UNDER THIS SECTION SHALL BE PERSONAL TO THE
CLAIMANT, BUT SUCH RIGHT MAY BE EXERCISED BY HIS LEGAL GUARDIAN OR
ATTORNEY-IN-FACT. THE RIGHT TO FILE A CLAIM SHALL NOT SURVIVE THE DEATH
OF A CLAIMANT. IF A CLAIMANT DIES AFTER HAVING FILED A CLAIM, ANY
AMOUNT REFUNDED AS A RESULT THEREOF SHALL BE DISBURSED TO HIS ESTATE:
PROVIDED, THAT IF NO EXECUTOR OR ADMINISTRATOR QUALIFIES THEREIN WITHIN
TWO YEARS OF THE FILING OF THE CLAIM, OR NO PETITION FOR DISTRIBUTION OF
A SMALL ESTATE IS FILED PURSUANT TO THE FIRST SECTION OF THE ACT OF
SEPTEMBER 14, 1965 (D.C. CODE, SECS. 20 - 2101 AND 20 - 2102), "79 STAT.
730, 85 STAT. 313." THE CLAIM SHALL NOT BE ALLOWED.
"(G) SUBJECT TO THE LIMITATIONS PROVIDED IN THIS SECTION, COMMENCING
WITH THE TAXABLE YEAR BEGINNING AFTER DECEMBER 31, 1974, AND FOR
SUCCEEDING TAXABLE YEARS, THE CLAIMANT MAY CLAIM AS A CREDIT AGAINST THE
DISTRICT INCOME TAXES OTHERWISE DUE ON HIS INCOME, PROPERTY TAXES
ACCRUED OR RENT CONSTITUTING PROPERTY TAXES ACCRUED FOR THAT YEAR. IF
THE ALLOWABLE AMOUNT OF SUCH CLAIM EXCEEDS THE INCOME TAXES OTHERWISE
DUE FROM THE CLAIMANT, OR OTHER TAX LIABILITIES OF THE CLAIMANT TO THE
DISTRICT, OR IF THERE ARE NO DISTRICT INCOME TAXES DUE FROM THE
CLAIMANT, THE AMOUNT OF THE CLAIM NOT USED AS AN OFFSET AGAINST INCOME
TAXES OR OTHER TAX LIABILITIES OF THE CLAIMANT TO THE DISTRICT SHALL BE
PAID OR CREDITED TO THE CLAIMANT. NO INTEREST SHALL BE ALLOWED ON ANY
PAYMENT MADE TO A CLAIMANT PURSUANT TO THIS SECTION.
"(H) NO CLAIM WITH RESPECT TO PROPERTY TAXES ACCRUED OR WITH RESPECT
TO RENT CONSTITUTING PROPERTY TAXES ACCRUED SHALL BE ALLOWED UNLESS A
DISTRICT OF COLUMBIA INDIVIDUAL INCOME TAX RETURN OR (IF THE CLAIMANT IS
NOT REQUIRED TO FILE SUCH RETURN) A CLAIM FOR CREDIT UNDER THIS SECTION
IS FILED WITH THE DISTRICT ON THE FORMS AND IN SUCH MANNER AND WITH SUCH
INFORMATION AS THE COMMISSIONER MAY PRESCRIBE. ANY CLAIM FOR CREDIT
SHALL BE FILED ON OR BEFORE THE TIME PRESCRIBED FOR THE FILING OF A
RETURN OF INDIVIDUAL INCOME UNDER THIS ARTICLE. THE COMMISSIONER MAY
GRANT A REASONABLE EXTENSION OF TIME, NOT TO EXCEED SIX MONTHS, FOR THE
FILING OF A RETURN OR CLAIM FOR CREDIT UNDER THIS SECTION WHENEVER IN
HIS JUDGMENT GOOD CAUSE EXISTS THEREFOR.
"(I) THE AMOUNT OF ANY CLAIM OTHERWISE PAYABLE UNDER THIS SECTION MAY
BE APPLIED BY THE DISTRICT AGAINST ANY OUTSTANDING TAX LIABILITY OF THE
CLAIMANT TO THE DISTRICT.
"(J) (1) IN DETERMINING ELIGIBILITY FOR THE CREDIT ALLOWABLE UNDER
THIS SECTION, AND FOR THE PURPOSE OF DETERMINING OUTSTANDING TAX
LIABILITY (IF ANY) OF THE CLAIMANT TO THE DISTRICT HOUSEHOLD INCOME FOR
WHICH THE CLAIM IS FILED AND THE CLAIMANT'S OUTSTANDING TAX LIABILITY
(IF ANY) SHALL BE DETERMINED ON THE BASIS OF THE COMBINED HOUSEHOLD
INCOME OF ALL MEMBERS PRESENT IN THE HOUSEHOLD, EXCEPT THERE SHALL BE
EXCLUDED FROM THE COMPUTATION OF GROSS HOUSEHOLD INCOME THE FIRST $1,000
EARNED BY A DEPENDENT.
"(2) IN THE CASE OF HUSBAND AND WIFE, WHO DURING THE ENTIRE CALENDAR
YEAR FOR WHICH A CLAIM IS FILED UNDER THIS SECTION, MAINTAIN SEPARATE
HOMES, FOR THE PURPOSE OF DETERMINING HOUSEHOLD INCOME AND THE
CLAIMANT'S OUTSTANDING TAX LIABILITY (IF ANY), SUCH HUSBAND AND WIFE
SHALL BE DEEMED TO HAVE BEEN UNMARRIED DURING THE CALENDAR YEAR FOR
WHICH THE CLAIM IS MADE.
"(K) NO CREDIT SHALL BE ALLOWED UNDER THIS TITLE FOR ANY YEAR DURING
WHICH THE PERSON CLAIMING THE CREDIT WAS A DEPENDENT, UNDER ANY STATE,
FEDERAL, OR DISTRICT LAW LEVYING A TAX ON INCOME, UNLESS DURING THAT
YEAR SUCH PERSON IS OR BECOMES SIXTY-FIVE YEARS OF AGE OR OLDER.
"(L) IN THE CASE OF PERSONS WHOSE INCOMES VARY SUBSTANTIALLY FROM
YEAR TO YEAR, THE DISTRICT OF COLUMBIA COUNCIL SHALL ADOPT REGULATIONS
CONCERNING INCOME AVERAGING FOR PURPOSES OF CALCULATING BENEFITS.
"(M) EACH OWNER OF A RENTAL UNIT OR HIS AUTHORIZED AGENT SHALL, WHEN
REQUESTED IN WRITING, FURNISH TO THE TENANT MAKING SUCH WRITTEN REQUEST
A STATEMENT INDICATING THE AMOUNT OF RENT PAID BY THE TENANT DURING THE
CALENDAR YEAR SOLELY FOR THE RIGHT OF OCCUPANCY OF THE LEASED PREMISES.
REQUESTS SHALL BE MADE UNDER THIS PARAGRAPH ONLY BY THOSE PERSONS
ENTITLED TO FILE A CLAIM UNDER THIS SECTION OR WHO AT THE TIME OF THE
MAKING OF THE REQUEST DEEM THEMSELVES ENTITLED TO FILE A CLAIM FOR
CREDIT UNDER THIS SECTION.
"(N) (1) IF, ON AN AUDIT OF ANY CLAIM FILED UNDER THIS SECTION, THE
COMMISSIONER FINDS THE AMOUNT TO HAVE BEEN INCORRECTLY COMPUTED, HE
SHALL DETERMINE THE CORRECT AMOUNT AND NOTIFY THE CLAIMANT IN ACCORDANCE
WITH THE PROCEDURES SET FORTHIN SECTION 5 OF TITLE XII OF THIS ARTICLE.
"61 STAT. 352; 74 STAT. 203, D.C. CODE 47 - 1586D."
"(2) IF IT IS DETERMINED THAT A CLAIM WAS FILED WITH FRAUDULENT
INTENT, IT SHALL BE DISALLOWED IN FULL. IF THE CLAIM HAS BEEN PAID OR A
CREDIT HAS BEEN ALLOWED AGAINST INCOMETAXES OTHERWISE PAYABLE, THE
CREDIT SHALL BE CANCELED AND THE AMOUNT PAID SHALL BE ASSESSED AGAINST
THE CLAIMANT AND RECOVERED IN THE SAME MANNER AS PROVIDED FOR THE
COLLECTION OF TAXES UNDER SECTION 1601 OF TITLE XVI OF THE ACT OF MAY
18, 1954 (D.C. CODE, SEC. 47 - 312). "63 STAT. 119."
"(O) NO CLAIM FOR RELIEF UNDER THIS SECTION SHALL BE ALLOWED TO ANY
PERSON WHO WAS NOT LIVING IN A HOME WHICH WAS SUBJECT TO DISTRICT OF
COLUMBIA REAL PROPERTY TAXATION DURING THE CALENDAR YEAR FOR WHICH THE
CLAIM IS FILED.
"(P) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, ANY
PERSON AGGRIEVED BY THE DENIAL IN WHOLE OR IN PART OF A CLAIM FOR THE
CREDIT AUTHORIZED BY THIS SECTION, OR AN ASSESSMENT OF TAX MADE PURSUANT
TO PARAGRAPH (1) OF THIS SECTION, MAY APPEAL THE DENIAL WITHIN SIX
MONTHS AFTER NOTICE OF THE DENIAL OF THE CLAIM OR WITHIN SIX MONTHS
AFTER NOTICE OF ASSESSMENT, TO THE BOARD WHICH SHALL CONSIDER SUCH
APPEAL AS A CONTESTED CASE UNDER SECTION 10 OF THE DISTRICT OF COLUMBIA
ADMINISTRATIVE PROCEDURE ACT (D.C. CODE, SEC. 1 - 1509). "82 STAT.
1208." IN THE CASE OF AN ASSESSMENT OF TAX, THE MAILING TO THE CLAIMANT
OF A STATEMENT OF TAXES DUE SHALL BE CONSIDERED NOTICE OF ASSESSMENT
WITH RESPECT TO SUCH TAXES.
"(Q) THE COMMISSIONER IS AUTHORIZED TO PROVIDE A TABLE WHICH WILL
APPEOXIMATE, AS CLOSELY AS FEASIBLE, THE AMOUNT OF RELIEF ALLOWABLE
UNDER THIS SECTION.
"(R) IF IT IS DETERMINED BY THE DISTRICT THAT A CLAIMANT RECEIVED
TITLE TO HIS HOME IN THE DISTRICT OR BECAME LEGALLY OBLIGATED TO PAY
RENT FOR HIS HOME IN THE DISTRICT PRIMARILY FOR THE PURPOSE OF RECEIVING
BENEFITS UNDER THE PROVISIONS OF THIS SECTION, HIS CLAIM SHALL BE
DISALLOWED.
"(S) THE DISTRICT OF COLUMBIA COUNCIL IS EMPOWERED TO MAKE SUCH
CHANGES IN THE AMOUNT OF ANNUAL RELIEF PROVIDED UNDER SECTION 7 (A) OF
THIS TITLE AS IT MAY DEEM PROPER.".
SEC. 461. NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW THE PROPERTY
TAX RATE FOR THE DISTRICT OF COLUMBIA FOR FISCAL YEAR 1975 SHALL BE SET
BY THE COUNCIL AT SUCH AN AMOUNT TO YIELD AT LEAST $146 MILLION IN
FISCAL YEAR 1975; EXCEPT THAT SUCH AMOUNT MAY BE REDUCED BY ANY AMOUNT
RAISED BY THE COUNCIL PURSUANT TO DELEGATION OF AUTHORITY CONTAINED IN
SECTION 471 OF THIS ACT, OR BY ANY REVENUE OBTAINED PURSUANT TO ANY
OTHER PROVISION OF LAW, OR BY ANY AMOUNTRAISED BY REPROGRAMMING OR
REALLOCATION OF THE FISCAL YEAR 1975 BUDGET.
TO DISTRICT SALES TAX ACT AND MISCELLANEOUS
SEC. 471. IN ORDER TO PROVIDE FOR ADDITIONAL REVENUE TO MEET
ADDITIONAL EXPENDITURES RESULTING FROM A COMPENSATION INCREASE ADOPTED
FOR PERSONS PAID UNDER THE DISTRICT OF COLUMBIA TEACHERS' SALARY ACT OF
1955, "ANTE, P. 1042." POLICEMEN, AND FIREMEN, THE COUNCIL, IN
ACCORDANCE WITH SECTION 406 OF REORGANIZATION PLAN NUMBERED 3 OF 1967,
IS AUTHORIZED TO CHANGE THE RATE OF THE TAXES IMPOSED UNDER--,
(1) THE DISTRICT OF COLUMBIA INCOME AND FRANCHISE TAX ACT OF
1947, "61 STAT. 628, D.C. CODE 47 - 1551 NOTE."
(2) THE DISTRICT OF COLUMBIA SALES TAX ACT, "63 STAT. 112, D.
C. CODE 47 - 2601 NOTE."
(3) THE DISTRICT OF COLUMBIA USE TAX ACT, D.C. CODE 47 - 2701."
(4) THE DISTRICT OF COLUMBIA CIGARETTE TAX ACT, "D.C. CODE 47 -
2810 NOTE."
(5) THE DISTRICT OF COLUMBIA ALCOHOLIC BEVERAGE CONTROL ACT,
D.C. CODE 47 - 2801 NOTE."
(6) THE ACT OF APRIL 23, 1924 (RELATING TO MOTOR VEHICLE FUEL
ACT, "48 STAT. 319, D.C. CODE 25 - 101."
(7) TITLE V OF THE DISTRICT OF COLUMBIA REVENUE ACT OF 1937,
AND "D.C. CODE 47 - 1901."
(8) ANY OTHER ACT OF CONGRESS IMPOSING A TAX SOLELY IN THE
DISTRICT OF COLUMBIA.
SEC. 472. SECTION 471 SHALL TAKE EFFECT ON THE DATE OF ENACTMENT OF
THIS ACT. "50 STAT. 673, D.C. CODE 47 - 401 ET SEQ."
SEC. 473. SECTION 114(A)(8) OF THE DISTRICT OF COLUMBIA SALES TAX
ACT (D.C. CODE, SEC. 47 - 2601(A)(8) "D.C. CODE 47 - 504 NOTE, 63 STAT.
112." IS AMENDED TO READ AS FOLLOWS:
"(8) THE SALE OF OR CHARGES FOR ADMISSION TO PUBLIC EVENTS, EXCEPT
LIVE PERFORMANCES OF BALLET, DANCE, OR CHORAL PERFORMANCES, CONCERTS
(INSTRUMENTAL AND VOCAL), PLAYS (WITH AND WITHOUT MUSIC), OPERAS AND
READINGS AND EXHIBITIONS OF PAINTINGS, SCULPTURE, PHOTOGRAPHY, GRAPHIC
AND CRAFT ARTS, BUT INCLUDING MOVIES, CIRCUSES, BURLESQUE SHOWS,
SPORTING EVENTS, AND PERFORMANCES OR EXHIBITIONS OF ANY OTHER TYPE OR
NATURE: PROVIDED, THAT ANY CASUAL OR ISOLATED SALE OF OR CHARGE FOR
ADMISSION MADE BY A SEMIPUBLIC INSTITUTION NOT REGULARLY ENGAGED IN
ASKING SUCH SALES OR CHARGES SHALL NOT BE CONSIDERED A RETAIL SALE OR
SALE AT RETAIL."
SEC. 741. THE FOLLOWING ACT OR PARTS OF ACTS ARE REPEALED EFFECTIVE
JUNE 30, 1975:
(A) TITLE XV OF THE DISTRICT OF COLUMBIA PUBLIC WORKS ACT OF
1954 (D.C. CODE, SEC. 47 - 501A.). "68 STAT. 119."
(B) THE FOURTH AND FIFTH PARAGRAPHS UNDER THE HEADING "GENERAL
EXPENSES" OF THE ACT OF MARCH 3, 1881 (D.C. CODE, (D.C. CODE, SEC.
47 - 601). "21 STAT. 460, D.C. CODE 47 - 301.//
(C) THE FIFTH PARAGRAPH UNDER THE PARAGRAPH HEADED "MILITIA" OF
THE ACT OF JULY 7, 1898 (D.C. CODE, SEC. 47 - 602).
(D) SECTION II OF THE ACT OF JUNE 25, 1938 (D.C. CODE, SEC. 47
- 603).
(E) THE FIRST PARAGRAPH OF SECTION 5 (D.C. CODE, SEC. 47 -
713), AND THE SECOND UNNUMBERED PARAGRAPH OF SECTION 6 (D.C.
CODE, SEC. 47 - 605), OF JULY 1, 1902. "32 STAT. 616; 44 STAT.
833, D.C. CODE 47 - 713."
(F) THE FIRST SECTION, AND SECTIONS 2,3,4,6,7, AND 8 OF THE ACT
OF AUGUST 14, 1894 (D.C. CODE, SECS. 47 - 604, 701, 702, 704,
707).
(G) THE FIRST FIVE SENTENCES, AND THE LAST TWO SENTENCES, OF
SECTION 5(A) OF THE ACT OF AUGUST 17, 1937 (D.C. CODE, SECS., 47 -
708--47 - 709). "52 STAT. 372; 84 STAT. 580 D.C. CODE 47 -
2405."
(H) SECTION 5 OF THE ACT OF MARCH 3, 1883 (D.C. CODE, SEC., 47
- 703). "22 STAT. 569, D.C. CODE 47 - 621 NOTE."
SEC. 475. EXCEPT AS SPECIFICALLY PROVIDED IN THIS TITLE, NOTHING IN
THIS TITLE, OR ANY AMENDMENTS MADE BY THIS ACT, SHALL BE CONSTRUED SO AS
TO AFFECT THE AUTHORITY VESTED IN THE COMMISSIONER OF THE K DISTRICT OF
COLUMBIA OR THE AUTHORITY VESTED IN THE DISTRICT OF COLUMBIA COUNCIL BY
REORGANIZATION PLAN NUMBERED 3 OF 1967. "81 STAT. 948, 5 USC APP. II."
THE PERFORMANCE OF ANY FUNCTION VESTED BY THIS TITLE IN THE COMMISSIONER
OF THE DISTRICT OF COLUMBIA OR IN ANY OFFICE OR AGENCY UNDER HIS
JURISDICTION AND CONTROL, OR IN THE DICTRICT OF COLUMBIA COUNCIL, MAY BE
DELEGATED BY THE COMMISSIONER OR BY THE COUNCIL, AS THE CASE MAY BE, IN
ACCORDANCE WITH THE PROVISIONS OF SUCH PLAN.
SEC. 476. (A) THE REPEAL OR AMENDMENT BY THIS TITLE OF ANY PROVISION
OF LAW SHALL NOT AFFECT ANY ACT DONE OR ANY RIGHT ACCRUED OR ACCRUING
UNDER SUCH PROVISION OF LAW BEFORE THE EFFECTIVE DATE OF THIS TITLE OR
ANY SUIT OR PROCEEDING HAD OR COMMENCED BEFORE THE EFFECTIVE DATE OF
THIS TITLE, BUT ALL SUCH RIGHTS AND LIABILITIES UNDER SUCH LAW SHALL
CONTINUE, AND MAY BE ENFORCED IN THE SAME MANNER AND TO THE SAME EXTENT,
AS IF SUCH REPEAL OR AMENDMENT HAD NOT BEEN MADE. "D.C. CODE 47 - 621
NOTE."
(B) ALL OFFENSES COMMITTED, AND ALL PENALTIES INCURRED, PRIOR TO THE
EFFECTIVE DATE OF THIS TITLE, UNDER ANY PROVISION OF LAW HEREBY REPEALED
OR AMENDED, MAY BE PROSECUTED AND PUNISHED IN THE SAME MANNER AND WITH
THE SAME EFFECT AS IF THIS TITLE HAD NOT BEEN ENACTED.
SEC. 477. EXCEPT AS SPECIFICALLY PROVIDED IN THIS ACT, OR IN OTHER
PROVISIONS OF LAW APPLICABLE TO THE DISTRICT OF COLUMBIA, THE COUNCIL
MAY BY REGULATION ESTABLISH PENALTIES FOR VIOLATIONS OF ANY PROVISION OF
THIS TITLE, INCLUDING ANY REGULATION ISSUED PURSUANT TO THIS TITLE.
SUCH PENALTIES MAY NOT EXCEED IMPRISONMENT FOR LONGER THAN ONE YEAR, OR
A FINE NOT TO EXCEED $10,000, OR BOTH, FOR EACH OFFENSE. "D.C. CODE 47
- 661."
SEC. 478. EXCEPT AS SPECIFICALLY PROVIDED IN THIS TITLE, THE
PROVISIONS OF THIS TITLE SHALL TAKE EFFECT ON THE DATE OF ENACTMENT OF
THIS TITLE, EXCEPT THAT PART 1 AND SUBPARTS A THROUGH G OF PART 2 SHALL
APPLY BEGINNING WITH THE FISCAL YEAR BEGINNING JULY 1, 1975. "D.C. CODE
47 - 621 NOTE"
SEC. 501. "D.C. CODE 47 - 621 NOTE."NOTWITHSTANDING ANY OTHER
PROVISION OF LAW, OR ANY RULE OF LAW, NOTHING IN THIS ACT SHALL BE
CONSTRUED AS LIMITING THE AUTHORITY OF THE COUNCIL OF THE DISTRICT
COLUMBIA TO ENACT ANY ACT, RESOLUTION, OR REGULATION, AFTER JANUARY 2,
1975, PURSUANT TO THE DISTRICT OF COLUMBIA SELF-GOVERNMENT AND
GOVERNMENTAL REORGANIZATION ACT WITH RESPECT TO ANY MATTER COVERED BY
THIS ACT. "87 STAT. 774, D.C. CODE 1 - 101 NOTE."
LEGISLATIVE HISTORY:
HOUSE REPORTS: NO. 93 - 1203 (COMM. ON THE DISTRICT OF COLUMBIA) AND
NO. 93 - 1294 (COMM. OF CONFERENCE).
SENATE REPORTS: NO. 93 - 1077 (COMM. ON THE DISTRICT OF COLUMBIA)
AND NO. 93 - 1101 (COMM. CONFERENCE).
CONGRESSIONAL RECORD, VOL. 120 (1974):
JULY 29, CONSIDERED AND PASSED HOUSE.
AUG. 8, CONSIDERED AND PASSED SENATE, AMENDED.
AUG. 16 SENATE AGREED TO CONFERENCE REPORT.
AUG. 20, HOUSE AGREED TO CONFERENCE REPORT.
PUBLIC LAW 93-406, 88 STAT. 829, EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974. (TITLE III & IV)
PENSION TASK FORCE, ETC.
SEC. 3001. (A) BEFORE ISSUING AN ADVANCE DETERMINATION OF WHETHER A
PENSION, PROFIT-SHARING, OR STOCK BONUS PLAN, A TRUST WHICH IS A PART OF
SUCH A PLAN, OR AN ANNUITY OR BOND PURCHASE PLAN MEETS THE REQUIREMENTS
OF PART I OF SUBCHAPTER D OF CHAPTER 1 OF THE INTERNAL REVENUE CODE OF
1954, //26 USC 401.// THE SECRETARY OF THE TREASURY SHALL REQUIRE THE
PERSON APPLYING FOR THE DETERMINATION TO PROVIDE, IN ADDITION TO ANY
MATERIAL AND INFORMATION NECESSARY FOR SUCH DETERMINATION, SUCH OTHER
MATERIAL AND INFORMATION AS MAY REASONABLY BE MADE AVAIABLE AT THE TIME
SUCH APPLICATION IS MADE AS THE SECRETARY OF LABOR MAY REQUIRE UNDER
TITLE I OF THIS ACT FOR THE ADMINISTRATION OF THAT TITLE. //ANTE, P.
832.// THE SECRETARY OF THE TREASURY SHALL ALSO REQUIRE THAT THE
APPLICANT PROVIDE EVIDENCE SATISFACTORY TO THE SECRETARY THAT THE
APPLICANT HAS NOTIFIED EACH EMPLOYEE WHO QUALIFIES AS AN INTERESTED
PARTY (WITHIN THE MEANING OF REGULATIONS PRESCRIBED UNDER SECTION
7476(B)(1) OF SUCH CODE //ANTE, P. 949.// (RELATING TO DECLARATORY
JUDGMENTS IN CONNECTION WITH THE QUALIFICATION OF CERTAIN RETIREMENT
PLANS)) OF THE APPLICATION FOR A DETERMINATION.
(B)(1) WHENEVER AN APPLICATION IS MADE TO THE SECRETARY OF THE
TREASURY FOR A DETERMINATION OF WHETHER A PENSION, PROFIT-SHARING, OR
STOCK BONUS PLAN,A TRUST WHICH IS A PART OF SUCH A PLAN, OR AN ANNUITY
OR BOND PURCHASE PLAN MEETS THE REQUIREMENTS OF PART I OF SUBCHAPTER D
OF CHAPTER 1 OF THE INTERNAL REVENUE CODE OF 1954, THE SECRETARY SHALL
UPON REQUEST AFFORD AN OPPORUNITY TO COMMENT ON THE APPLICATION AT ANY
TIME WITHIN 45 DAYS AFTER RECEIPT THEREOF TO--
(A) ANY EMPLOYEE OR CLASS OF EMPLOYEE QUALIFYING AS AN
INTERESTED PARTY WITHIN THE MEANING OF THE REGULATIONS REFERRED TO
IN SUBSECTION (A).
(B) THE SECRETARY OF LABOR, AND
(C) THE PENSION BENEFIT GUARANTY CORPORATION.
(2) THE SECRETARY OF LABOR MAY NOT REQUEST AN OPPORUNITY TO COMMENT
UPON SUCH AN APPLICATION UNLESS HE HAS BEEN REQUESTED IN WRITING TO DO
SO BY THE PENSION BENEFIT GUARANTY CORPORATION OR BY THE LESSER OF--
(A) 10 EMPLOYEES, OR
(B) 10 PERCENT OF THE EMPLOYEES WHO QUALIFY AS INTERESTED
PARTIES WITHIN THE MEANING OF THE REGULATIONS REFERRED TO IN
SUBSECTION (A). UPON RECEIVING SUCH A REQUEST, THE SECRETARY OF
LABOR SHALL FURNISH A COPY OF THE REQUEST TO THE SECRETARY OF THE
TREASURY WITHIN 5 DAYS (EXCLUDING SATURDAYS, SUNDAYS, AND LEGAL
PUBLIC HOLIDAYS (AS SET FORTH IN SECTION 6103 OF TITLE 5, UNITED
STATES CODE)). //80 STAT. 515; 82 STAT. 250.//
(3) UPON RECEINVING SUCH A REQUEST FROM THE SECRETARY OF LABOR, THE
SECRETARY OF THE TREASURY SHALL FURNISH TO THE SECRETARY OF LABOR SUCH
INFORMATION HELD BY THE SECRETARY OF THE TREASURY RELATING TO THE
APPLICATION AS THE SECRETARY OF LABOR MAY REQUEST.
(4) THE SECRETARY OF LABOR SHALL, WITHIN 30 DAYS AFTER RECEIVING A
REQUEST FROM THE PENSION BENEFIT GUARANTY CORPORATION OR FROM THE
NECESSARY NUMBER OF EMPLOYEES WHO QUALIFY AS INTERESTED PARTIES, NOTIFY
THE SECRETARY OF THE TREASURY, THE PENSION BENEFIT GUARANTY CORPORATION,
AND SUCH EMPLOYEES WITH RESPECT TO WHETHER HE IS GOING TO COMMENT ON THE
APPLICATION TO WHICH THE REQUEST RELATES AND WITH RESPECT TO ANY MATTERS
RAISED IN SUCH REQUEST ON WHICH HE IS NOT GOING TO COMMENT. IF THE
SECRETARY OF LABOR INDICATES IN THE NOTICE REQUIRED UNDER THE PRECEDING
SENTENCE TAHT HE IS NOT GOING TO COMMENT ON ALL OR PART OF THE MATTERS
RAISED IN SUCH REQUEST, THE SECRETARY OF TREASURY SHALL AFFORD THE
CORPORATION, AND SUCH EMPLOYEES, AN OPPORUNITY TO COMMENT ON THE
APPLICATION WITH RESPECT TO ANY MATTER ON WHICH HTE SECRETARY OF LABOR
HAS DECLINED TO COMMENT.
(C) THE PENSION BENEFIT GUARANTY CORPORATION AND, UPON PETITION OF A
GROUP OF EMPLOYEES REFERRED TO IN SUBSECTION (B)(2), THE SECRETARY OF
LABOR, MAY INTERVENE IN ANY ACTION BROUGHT FOR DECLARTORY JUDGMENT UNDER
SECTION 7476 OF THE INTERNAL REVENUE CODE OF 1954 //ANTE, P. 949.// IN
ACCORDANCE WITH THE PROVISIONS OF SUCH SECTION. THE PENSION BENEFIT
GUARANTY CORPORATION IS PERMITTED TO BRING AN ACTION UNDER SUCH SECTION
7476 UNDER SUCH RULES AS MAY BE PRESCRIBED BY THE UNITED STATES TAX
COURT.
(D) IF THE SECRETARY OF THE TREASURY DETERMINES THAT A PLAN OR TRUST
TO WHICH THIS SECTION APPLIES MEETS THE APPLICABLE REQUIREMENTS OF PART
I OF SUBCHAPTER D OF CHAPTER 1 OF THE INTERNAL REVENUE CODE OF 1954 //26
USC 401.// AND ISSUES A DETERMINATION LETTER TO THE APPLICANT, THE
SECRETARY SHALL NOTIFY THE SECRETARY OF LABOR OF HIS DETERMINATION AND
FURNISH SUCH INFORMATION AND MATERIAL RELATING TO THE APPLICATION AND
DETERMINATION HELD BY THE SECRETARY OF THE TREASURY AS THE SECRETARY OF
LABOR MAY REQUEST FOR THE PROPER ADMINISTRATION OF TITLE I OF THIS ACT.
//ANTE, P. 832.// THE SECRETARY OF LABOR SHALL ACCEPT THE DETERMINATION
OF THE SECRETARY OF THE TREASURY AS PRIMA FACIE EVIDENCE OF INITIAL
COMPLIANCE BY THE PLAN WITH THE STANDARDS OF PARTS 2, 3, AND 4 OF
SUNTITLE B OF TITLE I OF THIS ACT. IF AN APPLICATION FOR SUCH A
DETERMINATION IS WITHDRAWN, OR IF THE SECRETARY OF THE TREASURY ISSUES A
DETERMINATION THAT THE PLAN OR TRUST DOES NOT MEET THE REQUIREMENTS OF
SUCH PART I, THE SECRETARY SHALL NOTIFY THE SECRETARY OF LABOR OF THE
WITHDRAWAL OR DETERMINATION.
(E) THIS SECTION DOES NOT APPLY WITH RESPECT TO AN APPLICATION FOR
ANY PALN RECEIVED BY THE SECRETARY OF THE TREASURY BEFORE THE DATE ON
WHICH SECTION 410 OF THE INTERNAL REVENUE CODE OF 1954 //ANTE, P.
898.// APPLIES TO THE PLAN, OR ON WHICH SUCH SECTION WILL APPLY IF THE
PLAN IS DETERMINED BY THE SECRETARY TO BE A QUALIFIED PLAN.
SEC. 3002. (A) IN CARRYING OUT THE PROVISIONS OF PART I OF
SUBCHAPTER D OF CHAPTER 1 OF THE INTERNAL REVENUE CODE OF 1954 WITH
RESPECT TO WHETHER A PLAN OR A TRUST MEETS THE REQUIREMENTS OF SECTION
410(A) OR 411 OF SUCH CODE //ANTE, P. 901.// (RELATING TO MINIMUM
PARTICIPATION STANDARDS AND MINIMUM VESTING STANDARDS, RESPECTIVELY),
THE SECRETARY OF THE TREASURY SHALL NOTIFY THE SECRETARY OF LABOR WHEN
THE SECRETARY OF THE TREASURY ISSUES A PRELIMINARY NOTICE OF INTENT TO
DISQUALIFY RELATED TO THE PLAN OR TRUST OR, IF EARLIER, AT THE TIME OF
COMMENCING ANY PROCEEDING TO DETERMINE WHETHER THE PLAN OR TRUST
SATIFIES SUCH REQUIREMENTS. UNLESS THE SECRETARY OF THE TREASURY FINDS
THAT THE COLLECTION OF A TAX IMPOSED UNDER THE INTERNAL REVENUE CODE OF
1954 //26 USC 1 ET SEQ. // IS IN JEOPARDY, THE SECRETARY OF THE TREASURY
SHALL NOT ISSUE A DETERMINATION THAT THE PLAN DOES NOT SATISFY THE
REQUIREMENTS OF SUCH SECTION UNTIL THE EXPIRATION OF A PERIOD OF 60 DAYS
AFTER THE DATE ON WHICH HE NOTIFIES THE SECRETARY OF LABOR OF SUCH
REVIEW, THE SECRETARY OF THE TREASURY, IN HIS DISCRETION, MAY EXTEND THE
60-DAY PERIOD REFERRED TO IN THE PRECEDING SENTENCE IF HE DETERMINES
THAT SUCH AN EXTENSION WOULD ENABLE THE SECRETARY OF LABOR TO OBTAIN
COMPLIANCE WITH SUCH REQUIREMENTS BY THE PLAN WITHIN THE EXTENSION
PERIOD. EXCEPT AS OTHERWISE PROVIDED IN THIS ACT, //ANTE, P. 852.//
THE SECRETARY OF LABOR SHALL NOT GENERALL APPLY PART 2 OF TITLE I OF
THIS ACT TO ANY PLAN OR TRUST SUBJECT TO SECTIONS 410(A) AND 411 OF SUCH
CODE, //ANTE, P. 898, 901.// BUT SHALL REFER ALLEGED GENERAL VIOLATIONS
OF THE VESTING OR PARTICIPATION STANDARDS TO THE SECRETARY OF THE
TREASURY. (THE PRECEDING SENTENCE SHALL NOT APPLY TO MATTERS RELATING
TO INDIVIDUAL BENEFITS.)
(B) UNLESS THE SECRETARY OF THE TREASURY FINDS THAT THE COLLECTION OF
A TAX IS IN JEOPARDY, IN CARRYING OUT THE PROVISIONS OF SECTION 4971 OF
THE INTERNAL REVENUE CODE OF 1954 //ANTE, P. 920// (RELATING TO TAXES ON
THE FAILURE TO MEET MINIMUM FUNDING STANDARDS), THE SECRETARY OF THE
TREASURY SHALL NOTIFY THE SECRETARY OF LABOR BEFORE SENDING A NOTICE OF
DEFICIENCY WITH RESPECT TO ANY TAX IMPOSED UNDER TAHT SECTION ON AN
EMPLOYER, AND, IN ACCORDANCE WITH THE PROVISIONS OF SUBSECTION (D) OF
THE SECTION, AFFORD THE SECRETARY OF LABOR AN OPPORUNITY TO COMMENT ON
THE IMPOSITION OF THE TAX IN THE CASE. THE SECRETARY OF THE TREASURY
MAY WAIVE THE IMPOSITION OF THE TAX IMPOSED UNDER SECTION 4971(B) OF
SUCH CODE IN APPROPRIATE CASES. UPON RECEIVING A WRITTEN REQUEST FROM
THE SECRETARY OF LABOR OR FROM THE PENSION BENEFIT GUARANTY CORPORATION,
THE SECRETARY OF TREASURY SHALL CAUSE AN INVESTIGATION TO BE COMMENCED
EXPEDITIOUSLY WITH RESPECT TO WHETHER THE TAX IS IMPOSED UNDER SECTION
4971 OF SUCH CODE SHOULD BE APPLIED WITH RESPECT TO ANY EMPLOYER TO
WHICH THE REQUEST RELATES. THE SECRETARY OF THE TREASURY AND THE
SECRETARY OF LABOR SHALL CONSULT WITH EACH OTHER FROM TIME TO TIME WITH
RESPECT TO THE PROVISIONS OF SECTION 412 OF THE INTERNAL REVENUE CODE OF
1954 //ANTE, P. 914.// (RELATING TO MINIMUM FUNDING STANDARDS) AND WITH
RESPECT TO THE FUNDING STANDARDS, APPLICALE UNDER TITLE I OF THIS ACT IN
ORDER TO COORDINATE THE RULES APPLICABLE UNDER SUCH STANDARDS.
(C) REGULATIONS PRESCRIBED BY THE SECRETARY OF THE TREASURY UNDER
SECTIONS 410(A), 411, AND 412 OF THE INTERNAL REVENUE CODE OF 1954
(RELATING TO MINIMUM PARTICIPATION STANDARDS, MINIMUM VESTING STANDARDS,
AND MINIMUM FUNDING STANDARDS, RESPECTIVELY) SHALL ALSO APPLY TO THE
MINIMUM PARTICIPATION, VESTING, AND FUNDING STANDARDS SET FORTH IN PARTS
2 AND 3 OF SUBTITLE B OF TITLE I OF THIS ACT. //ANTE, P. 852, 868.//
EXCEPT ASOTHERWISE EXPRESSLY PROVIDED IN THIS ACT, THE SECRETARY OF
LABOR SHALL NOT PRESCRIBE OTHER REGULATIONS UNDER SUCH PARTS, OR APPLY
THE REGULATIONS PRESCRIBED BY THE SECRETARY OF THE TREASURY UNDER
SECTIONS 410(A), 411, 412 OF THE INTERNAL REVENUE CODE OF 1954 AND
APPLICABLE TO THE MINIMUM PARTICIPATION, VESTING, AND FUNDING STANDARDS
NUDER SUCH PARTS IN A MANNER INCONSISTENT WITH THE WAY SUCH REGULATIONS
APPLY UNDER SECTIONS 410(A), 411, AND 412 OF SUCH CODE.
(D) THE SECRETARY OF LABOR AND THE PENSION BENEFIT GUARANTY
CORPORATION, BEOFRE FILING BRIEFS IN ANY CASE INVOLVING THE CONSTRUCTION
OR APPLICATION OF MINIMUM PARTICIPATION STANDARDS, MINIMUM VESTING
STANDARDS, OR MINIMUM FUNDING STANDARDS UNDER TITLE I OF THIS ACT, SHALL
AFFORD THE SECRETARY OF THE TREASURY A REASONABLE OPPORUNITY TO REVIEW
ANY SUCH BRIEF. THE SECRETARY OF THE TREASURY SHALL HAVE THE RIGHT TO
INTERVENE IN ANY SUCH CASE.
SEC. 3003. (A) UNLESS THE SECRETARY OF THE TREASURY FINDS THAT THE
COLLECTION OF A TAX IS IN JEOPARDY, IN CARRYING OUT THE PROVISIONS OF
SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1954 //ANTE, P. 971.//
RELATING TO TAX ON PROHIBITED TRANSACTIONS) THE SECRETARY OF THE
TREASURY SHALL, IN ACCORDANCE WITH THE PROVISIONS OF SUBSECTION (H) OF
SUCH SECTION, NOTIFY THE SECRETARY OF LABOR BEFORE SENDING A NOTICE OF
DEFICIENCY WITH RESPECT TO THE TAX IMPOSED BY SUBSECTION (A) OR (B) OF
SUCH SECTION, AND, IN ACCORDANCE WITH THE PROVISIONS OF SUBSECTION (H)
OF SUCH SECTION, AFFORD THE SECRETARY AN OPPORUNITY TO COMMENT ON THE
IMPOSITION OF THE TAX IN ANY CASE. THE SECRETARY OF THE TREASURY SHALL
HAVE AUTHORITY TO WAIVE THE IMPOSITION OF THE TAX IMPOSED UNDER SECTION
4975(B) IN APPROPRIATE CASES. UPON RECEIVING A WRITTEN REQUEST FROM THE
SECRETARY OF LABOR OR FROM THE PENSION BENEFIT GUARANTY CORPORATION, THE
SECRETARY OF THE TREASURY SHALL CAUSE AN INVESTIGATION TO BE CARRIED OUT
WITH RESPECT TO WHETHER THE TAX IMPOSED BY SECTION 4975 OF SUCH CODE
SHOULD BE APPLIED TO ANY PERSON REFERRED TO IN THE REQUEST.
(B) THE SECRETARY OF THE TREASURY AND THE SECRETARY OF LABOR SHALL
CONSULT WITH EACH OTHER FROM TIME TO TIME WITH RESPECT TO THE PROVISIONS
OF SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1954 (RELATING TO TAX ON
PROHIBITED TRANSACTIONS) AND WITH RESPECT TO THE PROVISIONS OF TITLE I
OF THIS ACT //ANTE, P. 832.// RELATING TO PROHIBITED TRANSACTIONS AND
EXPTED THEREFROM IN ORDER TO COORDINATE THE RULES APPLICABLE UNDER SUCH
STANDARDS.
(C) WHENEVER THE SECRETARY OF LABOR OBTAINS INFORMATION INDICATING
THAT A PARTY-IN-INTEREST OR DISQUALIFIED PERSON IS VIOLATING SECTION 406
OF THIS ACT //ANTE, P. 879.// HE SHALL TRANSMIT SUCH INFORMATION TO THE
SECRETARY OF THE TREASURY.
SEC. 3004. (A) WHENEVER THIS ACT OR IN ANY PROVISION OF LAW AMENDED
BY THIS ACT THE SECRETARY OF THE TREASURY AND THE SECRETARY OF LABOR ARE
REQUIRED TO CARRY OUT PROVISIONS RELATING TO THE SAME SUBJECT MATTER (AS
DETERMINED BY THEM) THEY SHALL CONSULT WITH EACH OTHER AND SHALL DEVELOP
RULES, REGULATIONS, PRACTICES, AND FORMS WHICH, TO THE EXTENT
APPROPRIATE FOR THE EFFICIENT ADMINISTRATION OF SUCH PROVISIONS. ARE
DESIGNATED TO REDUCE DUPLICATION OF EFFORT, DUPLICATION OF REPORTING,
CONFLICTING OR OVERLAPPING REQUIREMENTS, AND THE BURDEN OF COMPLIANCE
WITH SUCH PROVISIONS BY PLAN ADMINISTRATORS, EMPLOYERS, AND PARTICIPANTS
AND BENEFICIARIES.
(B) IN ORDER TO AVOID UNNECESSARY EXPENSE AND DUPLICATION OF
FUNCTIONS AMONG GOVERNMETN AGENCIES, THE SECERTARY OF THE TREASURY AND
THE SECRETARY OF LABOR MAY MAKE SUCH ARRANGEMENTS OR AGREEMENTS FOR
COOPERATION OR MUTUAL ASSISTANCE IN THE PERFORMANCE OF THEIR FUNCTIONS
UNDER THIS ACT, AND THE FUNCTIONS OF ANY SUCH AGENCY AS THEY FIND TO BE
PRACTICABLE AND CONSISTENT WITH LAW. THE SECRETARY OF THE TREASURY AND
THE SECRETARY OF LABOR MAY UTILIZE, ON A REIMBURSABLE OR OTHER BASIS,
THE FACILITIES OR SERVICES, OF ANY DEPARTMENT, AGENCY, OR ESTABLISHMENT
OF THE UNITED STATES OR OF ANY STATE OR POLITICAL SUBDIVISION OF A
STATE, INCLUDING THE SERVICES, OF ANY OF ITS EMPLOYEES, WITH THE LAWFUL
CONSENT OF SUCH DEPARTMENT, AGENCY, OR ESTABLISHMENT; AND EACH
DEPARTMENT, AGENCY, OR ESTABLISHMENT OF THE UNITED STATES IS AUTHORIZED
AND DIRECTED TO COOPERATE WITH THE SECRETARY OF THE TREASURY AND THE
SECRETARY OF LABOR AND, TO THE EXTENT PERMITTED BY LAW, TO PROVIDE SUCH
INFORMATION AND FACILITIES AS THEY MAY REQUEST FOR THEIR ASSISTANCE IN
THE PERFORMANCE OF THEIR FUNCTIONS UNDER THIS ACT. THE ATTORNEY GENERAL
OR HIS REPRESENTATIVE SHALL RECEIVE FROM THE SECRETARY OF THE TREASURY
AND THE SECRETARY OF LABOR FOR APPROPRIATE ACTION SUCH EVIDENCE
DEVELOPED IN THE PERFORMANCE OF THEIR FUNCTIONS UNDER THIS ACT AS MAY BE
FOUND TO WARRANT CONSIDERATION FOR CRIMINAL PROSECUTION UNDER THE
PROVISIONS OF THIS TITLE OR OTHER FEDERAL LAW.
SEC. 3021. THE STAFFS OF THE COMMITTEE ON WAYS AND MEANS AND THE
COMMITTEE ON EDUCATION AND LABOR OF THE HOUSE OF REPRESENTATIVES, THE
JOINT COMMITTEE ON INTERNAL REVENUE TAXATION, AND THE COMMITTEE ON
FINANCE AND THE COMMITTEE ON LABOR AND PUBLIC WELFARE OF THE SENATE
SHALL CARRY OUT THE DUTIES ASSIGNED UNDER THIS TITLE TO THE JOINT
PENSION TASK FORCE. BY AGREEMENT AMONG THE CHAIRMEN OF SUCH COMMITTEES,
THE JOINT PENSION TASK FORCE SHALL BE FURNISHED WITH OFFICE SPACE,
CLERICAL PERSONNEL, AND SUCH SUPPLIES AND EQUIPMENT AS MAY BE NECESSARY
FOR THE JOINT PENSION TASK FORCE TO CARRY OUT ITS DUTIES UNDER THIS
TITLE.
SEC. 3022. (A) THE JOINT PENSION TASK FORCE SHALL, WITHIN 24 MONTHS
AFTER THE DATE OF ENACTMENT OF THIS ACT, MADE A FULL STUDY AND REVIEW
OF--
(1) THE EFFECT OF THE REQUIREMENTS OF SECTION 411 OF THE
INTERNAL REVENUE CODE OF 1954 AND OF SECTION 203 OF THIS ACT
//ANTE, PP. 901, 854.// TO DETERMINE THE EXTENT OF DISCRIMINATION,
IF ANY, AMONG EMPLOYEES IN VARIOUS AGE GROUPS RESULTING FROM THE
APPLICATION OF SUCH REQUIREMENTS;
(2) MEANS OF PROVIDING FOR THE PORTABILITY OF PENSION RIGHTS
AMONG DIFFERENT PENSION PLANS;
(3) THE APPROPRIATE TREATMENT UNDER TITLE IV OF THE ACT //ANTE,
P. 1003.// (RELATING TO TERMINATION INSURANCE) OF PLANS
ESTABLISHED AND MAINTAINED BY SMALL EMPLOYERS;
(4) THE EFFECTS AND DESIRABILITY OF THE FEDERAL PREEMPTION OF
STATE AND LOCAL LAW WITH RESPECT TO MATTERS RELATING TO PENSION
AND SIMILAR PLANS; AND
(5) SUCH OTHER MATTER AS ANY OF THE COMMITTEES REFERRED TO IN
SECTION 3021 MAY REFER TO IT.
(B) THE JOINT PENSION TASK FORCE SHALL REPORT THE RESULTS OF ITS
STUDY AND REVIEW TO EACH OF THE COMMITTEES REFERRED TO IN SECTION 3021.
SEC. 3031. (A) THE COMMITTEE ON EDUACTION AND LABOR AND THE
COMMITTEE ON WAYS AND MEANS OF THE HOUSE OF REPRESENTATIVES AND THE
COMMITTEE ON FINANCE AND THE COMMITTEE ON LABOR AND PUBLIC WELFARE OF
THE SENATE SHALL STUDY RETIREMENT PLANS ESTABLISHED AND MAINTAINED OR
FINANCED (DIRECTLY OR INDIRECTLY) BY THE GOVERNMENT OF THE UNITED
STATES, BY ANY STATE (INCLUDING THE DISTRICT OF COLUMBIA) OR POLITICAL
SUBDIVISION THEREOF, OR BY ANY AGENCY OR INSTRUMENTALITY OF ANY OF THE
FOREGOING. SUCH STUDY SHALL INCLUDE AN ANALYSIS OF--
(1) THE ADEQUACY OF EXISTING LEVELS OF PARTICIPATION, VESTING,
AND FINANCING ARRANGEMENTS,
(2) EXISTING FIDUCIARY STANDARDS, AND
(3) THE NECESSITY FOR FEDERAL LEGISLATION AND STANDARDS WITH
RESPECT TO SUCH PLANS.
IN DETERMINING WHETHER ANY SUCH PLAN IS ADEQUATELY FINANCES, EACH
COMMITTEE SHALL CONSIDER THE NECESSITY FOR MINIMUM FUNDING STANDARDS, AS
WELL AS THE TAXING POWER OF THE GOVERNMENT MAINTAINING THE PLAN.
(B) NOT LATER THAN DECEMBER 31, 1976, THE COMMITTEE ON EDUCATION AND
LABOR AND THE COMMITTEE ON WAYS AND MEANS SHALL EACH SUBMIT TO THE HOUSE
OF REPRESENTATIVES THE RESULTS OF THE STUDIES CONDUCTED UNDER THIS
SECTION, TOGETHER WITH SUCH RECOMMENDATIONS AS THEY DEEM APPROPRIATE.
THE COMMITTEE ON FINANCE AND THE COMMITTEE ON LABOR AND PUBLIC WELFARE
SHALL EACH SUBMIT TO THE SENATE TEH RESULTS OF THE STUDIES CONDUCTED
UNDER THIS SECTION TOGETHER WTIH SUCH RECOMMENDATIONS AS THEY DEEM
APPROPRIATE NOT LATER THAN SUCH DATE.
SEC. 3032. (A) THE SECRETARY OF LABOR SHALL, DURING THE 2-YEAR
PERIOD BEGINNING ON THE DATE OF THE ENACTMENT OF THSI ACT, CONDUCT A
FULL AND COMPLETE STUDY AND INVESTIGATION OF THE STEPS NECESSARY TO BE
TAKEN TO INSURE THAT PROFESSIONAL, SCIENTIFIC, AND YECHNICAL PERSONNEL
AND OTHERS WORKING IN ASSOCIATED OCCUPATIONS EMPLOYED UNDER FEDERAL
PROCUREMENT, CONSTRUCTION, OR RESEARCH CONTRACTS OR GRANT WILL, TO THE
EXTENT FEASIBLE, BE PROTECTED AGAINST FORFEITURES OF PENSION OR
RETIREMENT RIGHTS OR BENEFITS, OTHERWISE PROVIDED, AS A CONSEQUENCE OF
JOB TRANFERS OR LOSS OF EMPLOYMENT RESULTING FROM TERMINATIONS OR
MODIFICATIONS OF FEDERAL CONTRACTS, GRANTS OR PROCUREMENT POLICIES. THE
SECRETARY OF LABOE SHALL REPORT THE RESULTS OF HIS STUDY AND
INVESTIGATION TO THE CONGRESS WITHIN 2 YEARS AFTRER THE DATE OF THE
ENACTMENT OF THIS ACT. THE SECRETARY OF LABOR IS AUTHORIZED, TO THE
EXTENT PROVIDED BY LAW, TO OBTAIN THE SERVICES OR OTHER ARRANGEMENT AS
HE DETERMINES NECESSARY IN CARRYING OUT THE PROVISIONS OF THIS SECTION.
(B) IN THE SOURSE OF CONDUCTING THE STUDY AND INVESTIGATION DESCRIBED
IN SUBSECTION (A), AND IN DEVELOPING THE REGULATIONS REFERRED TO IN
SUBSECTION (C), THE SECRETARY OF LABOR SHALL CONSULT--
(1) WITH APPROPRIATE PROFESSIONAL SOCIETIES, BUSINESS
ORGANIZATIONS, AND LABOR ORGANIZATIONS, AND
(2) WITH THE HEADS OF INTERESTED FEDERAL DEPARTMENTS AND
AGENCIES.
(C) WITHIN 1 YEAR AFTER THE DATE ON WHICH HE SUBMITS HIS REPORT TO
THE CONGRESS UNDER SUBSECTION (A), THE SECERTARY OF LABOR SHALL, IF HE
DETERMINES IT TO BE FEASIBLE, DEVELOP REGULATIONS WHICH WILL PROVIDE THE
PROTECTION OF PENSION AND RETIREMENT RIGHTS AND BENEFITS REFERRED TO IN
SUBSECTION (A).
(D)(1) ANY REGULATIONS DEVELOPED PURSUANT TO SUBSECTION (C) SHALL
TAKE EFFECT IF, AND ONLY IF--
(A) THE SECRETARY OF LABOR, NOT LATER THAN THE DAY WHICH IS 3
YEARS AFTER THE DATE OF ENACTMENT OF THIS ACT, DELIVERS A COPY TO
THE SENATE, AND
(B) BEFORE THE CLOSE OF THE 120-DAY PERIOD WHICH BEGINS ON THE
DAY ON WHICH THE COPIES OF SUCH REGULATIONS ARE DELIVERED TO THE
HOUSE OF REPRESENTATIVES AND TO THE SENATE, NEITHER THE HOUSE OF
REPRESENTATIVES NOR THE SENATE ADOPTS, BY AN AFFIRMATIVE VOTE OF A
MAJORITY OF THOSE PRESENT AND VOTING IN THAT HOUSE, A RESOLUTION
OF DISAPPROVAL.
(2) FOR PURPOSES OF THIS SUBSECTION, THE TERM "RESOLUTION OF
DISAPPROVAL" MEANS ONLY A RESOLUTION OF EITHER HOUSE OF CONGRESS, THE
MATTER AFTER THE RESOLVING CLAUSE OF WHICH IS AS FOLLOWS: "THAT THE--
CONGRESS DOES NOT FAVOR THE TAKING EFFECT OF THE REGULATIONS TRANSMITTED
TO THE CONGRESS BY THE SECRETARY OF LABOR ON--", THE FIRST BLANK SPACE
THEREIN BEING FILLED WITH THE NAME OF THE RESOLVONG HOUSE AND THE SECOND
BLANK SPACE THEREIN BEING FILLED WITH THE DAY AND YEAR.
(3) A RESOLUTION OF DISAPPROVAL IN THE HOUSE OF REPRESENTATIVES SHALL
BE REFERRED TO THE COMMITTEE ON EDUCATION AND LABOR. A RESOLUTION OF
DISAPPROVAL IN THE SENATE SHALL REFERRED TO THE COMMITTEE ON LABOR AND
PUBLIC WELFARE.
(4)(A) IF THE COMMITTEE TO WHICH A RESOLUTION OF DISAPPROVAL HAS BEEN
REFERRED HAS NOT REPORTED IT AT THE END OF 7 CALENDAR DAYS AFTER ITS
INTRODUCTION, IT IS IN ORDER TO MOVE EITHER TO DISCHARGE THE COMMITTEE
FROM FURTHER CONSIDERATION OF THE RESOLUTION OR TO DISCHARGE THE
COMMITTEE FROM FURTHER CONSIDERATION OF ANY OTHER RESOLUTION OF
DISAPPROVAL WHICH HAS BEEN REFERRED TO THE COMMITTEE.
(B) A MOTION TO DISCHARGE MAY BE MADE ONLY BY AN INDIVIDUAL FAVORING
THE RESOLUTION, IS HIGHLY PRIVILEGED (EXCEPT THAT IT MAY NOT BE MADE
AFTER THE COMMITTEE HAS REPORTED A RESOLUTION OF DISAPPROVAL), AND
DEBATE THEREON SHALL BE LIMITED TO NOT MORE THAN 1 HOUR, TO BE DIVIDED
EQUALLY BETWEEN THOSE FAVORING AND THOSE OPPOSING THE RESOLUTION. AN
AMENDMENT TO THE MOTION IS NOT IN ORDER, AND IT IS NOT IN ORDER TO MOVE
TO RECONSIDER THE VOTE BY WHICH THE MOTION IS AGREED TO OR DISAGREED TO.
(C) IF THE MOTION TO DISCHARGE IS AGREED TO OR DISAGREED TO, THE
MOTION MAY NOT BE RENEWED, NOR MAY ANOTHER MOTION TO DISCHARGE THE
COMMITTEE BE MADE WITH RESPECT TO ANY OTHER RESOLUTION OF DISAPPROVAL.
(5)(A) WHEN THE COMMITTEE HAS REPORTED, OR HAS BEEN DISCHARGED FROM
FURTHER CONSIDERATION OF, A RESOLUTION OF DISAPPROVAL, IT IS AT ANY TIME
THEREAFTER IN ORDER (EVEN THOUGH A PREVIOUS MOTION TO THE SAME EFFECT
HAS BEEN DISAGREED TO) TO MOVE TO PROCEED TO THE CONSIDERATION OF THE
RESOLUTION. THE MOTION IS HIGHLY PRIVILEGED AND IS NOT DEBATABLE. AN
AMENDMENT TO THE MOTION IS NOT IN ORDER, AND IT IS NOT IN ORDER TO MOVE
TO RECONSIDER THE VOTE BY WHICH THE MOTION IS AGREED TO OR DISAGREED TO.
(B) DEBATE ON THE RESOLUTION OF DISAPPROVAL SHALL BE LIMITED TO NOT
MORE THAN 10 HOURS, WHICH SHALL BE DIVIDED EQUALLY BETWEEM THOSE
FAVORING AND THOSE OPPOSING THE RESOLUTION. AMOTION FURTHER TO LIMIT
DEBATE IS NOT DEBATABLE. AN AMENDMENT TO, OR MOTION TO RECOMMIT, THE
RESOLUTION IS NOT IN ORDER, AND IT IS NOT IN ORDER TO MOVE TO RECONSIDER
THE VOTE BY WHCIH THE RESOLUTION IS AGREED TO OR DISAGREED TO.
(6)(A) MOTIONS TO POSTPONE, MADE WITH RESPECT TO THE DISCHARGE FROM
COMMITTEE OR THE CONSIDERATION OF A RESOLUTION OF DISAPPROVAL, AND
MOTIONS TO PROCEED TO THE CONSIDERATION OF OTHER BUSINESS, SHALL BE
DECIDED WITHOUT DEBATE.
(B) APPEALS FROM TEH DECISIONS OF THE CHAIR RELATING TO THE
APPLICATION OF THE RULES OF THE HOUSE OF REPRESENTATIVES OR THE SENATE,
AS THE CASE MAY BE, TO THE PROCEDURE RELATING TO ANY RESOLUTION OF
DISAPPROVAL SHALL BE DECIDED WITHOUT DEBATE.
(7) WHENEVER THE SECRETARY OF LABOR TRANSMITS COPIES OF THE
REGULATIONS
CONGRESS, A COPY OF SUCH REGULATIONS SHALL BE DELIVERED TO
EACH HOUSE OF CONGRESS ON THE SAME DAY AND SHALL BE DELIVERED TO THE
CLERK OF THE HOUSE OF REPRESENTATIVES IF THE HOUSE IS NOT IN SESSION AND
TO THE SECRETARY OF THE SENATE IF THE SENATE IS NOT IN SESSION.
(8) THE 120 DAY PERIOD REFERRED TO IN PARAGRAPH (1) SHALL BE COMPUTED
BY EXCLUDING--
(A) THE DAYS ON WHICH EITHER HOUSE IS NOT IN SESSION BECAUSE OF
AN ADJOURNMENT OF MORE THAN 3 DAYS TO A DAY CERTAIN OR AN
ADJOURNMENT OF THE CONGRESS SINE DIE, AND
(B) ANY SATURDAY AND SUNDAY, NOT EXCLUDED UNDER SUBPARAGRAPH
(A), WHEN EITHER HOUSE IS NOT IN SESSION.
(9) THIS SUBSECTION IS ENACTED BY THE CONGRESS--
(A) AS AN EXERCISE OF THE RULEMAKING POWER OF THE HOUSE OF
REPRESENTATIVES AND THE SENATE, RESPECTIVELY, BUT APPLICABLE ONLY
WITH RESPECT TO THE PROCEDURE TO BE FOLLOWED IN THAT HOUSE IN THE
CASE OF RESOLUTIONS OF DISAPPROVAL DESCRIBED IN PARAGRAPH (2);
AND THEY SUPERCEDE OTHER RULES ONLY TO THE EXTENT THAT THEY ARE
INCONSISTENT THEREWITH; AND
(B) WITH FULL RECOGNITION OF THE CONSTITUTIONAL RIGHT OF EITHER
HOUSE TO CHANGE THE RULES (SO FAR AS RELATING TO THE PROCEDURES OF
THAT HOUSE) AT ANY TIME, IN THE SAME MANNER AND TO THE SAME EXTENT
AS IN THE CASE OF ANY OTHER RULE OF THAT HOUSE.
SEC. 3041. THE SECRETARY OF LABOR AND THE SECRETARY OF THE TREASURY
SHALL, NOT LATER THAN THE LAST DAY OF THE FIRST CLAENDAR MONTH BEGINNING
AFTER THE DATE OF THE ENACTMENT OF THIS ACT, ESTABLISH A JOINT BOARD FOR
THE ENROLLMENT OF ACTUARIES (HEREINAFTER IN THIS PART REFERRED TO AS THE
"JOINT BOARD").
SEC. 3042. (A) THE JOINT BOARD SHALL, BY REGULATIONS, ESTABLISH
REASONABLE STANDARDS AND QUALIFICATIONS FOR PERSONS ACTUARIAL SERVICES
WITH RESPECT TO PLANS IN WHICH THIS ACT APPLIES AND, UPON APPLICATION BY
ANY INDIVIDUAL, SHALL ENROLL SUCH INDIVIDUAL IF THE JOINT BOARD FINDS
THAT SUCH INDIVIDUAL SATISFIES SUCH STANDARDS AND QUALIFICATIONS. WITH
RESPECT TO INDIVIDUALS APPLYING FOR ENROLLMENT BEFORE JANUARY 1, 1976,
SUCH STANDARDS AND QUALIFICATIONS SHALL INCLUDE A REQUIREMENT FOR AN
APPROPRIATE PERIOD OF RESPONSIBLE ACTUARIAL EXPERIENCE RELATING TO
PENSION PLANS. WITH RESPECT TO INDIVISUALS APPLYING FOR ENROLLMENT ON
OR AFTER JANUZRY 1, 1976, SUCH STANDARDS AND QUALIFICATIONS SHALL
INCLUDE--
(1) EDUCATION AND TRAINING IN ACTUARIAL MATHEMATICS AND
METHODOLOGY, AS EVIDENCED BY-
(A) A DEGREE IN ACTUARIAL MATHEMATICS OR ITS EQUIVALENT FROM AN
ACCREDITED COLLEGE OR UNIVERSITY,
(B) SUCCESSFUL COMPLETION OF AN EXAMINATION IN ACTUARIAL
MATHEMATICS AND METHODOLOGY TO BE GIVEN BY THE JOINT BOARD, OR
(C) SUCCESSFUL COMPLETION OF OTHER ACTUARIAL EXAMINATIONS
DEEMED ADEQUATE BY THE JOINT BOARD, AND
(2) AN APPROPRIATE PERIOD OF RESPONSIBLE ACTUARIAL
EXPERIENCE.
NOTWITHSTANDING THE PRECEDING PROVISIONS OF THIS SUBSECTION, THE JOINT
BOARD MAY PROVIDE FOR THE TEMPOARY ENROLLMENT FOR THE PERIOD ENDING ON
JANUARY 1, 1976, OF ACTURIES UNDER SUCH INTERIM STANDARDS AS IT DEEMS
ADEQUATE.
(B) THE JOINT BOARD MAY, AFTER NOTICE AND AN OPPORUNITY FOR A
HEARING, SUSPEND OR TERMINATE THE ENROLLMENT OF AN INDIVIDUAL UNDER THIS
SECTION IF THE JOINT BOARD FINDS THAT SUCH INDIVIDUAL--
(1) HAS FAILED TO DISCHARGE HIS DUTIES UNDER THIS ACT, OR
(2) DOES NOT SATISFY THE REQUIREMENTS FOR ENROLLMENT AS IN
EFFECT AT THE TIME OF HIS ENROLLMENT.
THE JOINT BOARD MAY ALSO, AFTER NOTICE AND OPPORUNITY FOR HEARING,
SUSPEND OR TERMINATE ENROLLMENT OF AN INDIVIDUAL WHO FAILS TO DISCHARGE
HIS DUTIES UNDER THIS ACT OR WHO DOES NOT SATISFY THE INTERIM ENROLLMENT
STANDARDS.
SEC. 3043. SECTION 7701(A) OF THE INTERNAL REVENUE CODE OF 1954 //29
USC 7701.// (RELATING TO DEFINITIONS) IS AMENDED BY ADDING AT THE END
THEREOF THE FOLLOWING NEW PARAGRAPH:
"(35) ENROLLED ACTUARY.--THE TERM 'ENROLLED ACTUARY' MEANS A
PERSON WHO IS ENROLLED BY THE JOINT BOARD FOR THE ENROLLMENT OF
ACTUARIES ESTABLISHED UNDER SUBTITLE C OF THE TITLE III OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974." //ANTE, P.
1002.//
SEC. 4001. (A) FOR PURPOSES OF THIS TITLE, THE TERM--
(1) "ADMINISTRATOR" MEANS THE PERSON OR PERSONS DESCRIBED IN
PARAGRAPH (16) OF SECTION 3 OF THIS ACT:; //ANTE, P. 833.//
(2) "SUBSTANTIAL EMPLOYER" MEANS FOR ANY PLAN YEAR AN EMPLOYER
(TREATING EMPLOYERS WHO ARE MEMBERS OF THE SAME AFFILIATED GROUP,
WITHIN THE MEANING OF SECTION 1563(A) OF THE INTERNAL REVENUE CODE
OF 1954, //29 USC 1563.// DETERMINED WITHOUT REGARD TO SECTION
1563(A)(4) AND (E)(3)(C) OF SUCH CODE, AS ONE EMPLOYER) WHO HAS
MADE CONTRIBUTIONS TO OR UNDER A PLAN UNDER WHICH MORE THAN ONE
EMPLOYER MAKES CONTRIBUTIONS FOR EACH OF--
EQUALING OR EXCEEDING 10 PERCENT OF ALL EMPLOYER CONTRIBUTIONS
PAID TO OR UNDER THAT PLAN FOR EACH SUCH YEAR;
(3) "MULTIEMPLOYER PLAN" MEANS A MULTIEMPLOYER PLAN AS DEFINED
IN SECTION 414(F) OF THE INTERNAL REVENUE CODE OF 1954 //ANTE, P.
925.// (AS ADDED BY THIS ACT BUT WITHOUT REGARD TO WHETHER SUCH
SECTION IS IN EFFECT ON THE DATE OF ENACTMENT OF THIS ACT);
(4) "CORPORATION", EXCEPT WHERE THE CONTEXT CLEARLY REQUIRES
OTHERWISE, MEANS THE PENSION BENEFIT GUARANTY CORPORATION
ESTABLISHED UNDER SECTION 4002; //POST, P. 1004.//
(5) "FUND" MEANS THE APPROPRIATE FUND ESTABLISHED UNDER SECTION
4005; //POST, P. 1009.//
(6) "BASIC BENEFITS" MEANS BENEFITS GUARANTEED UNDER SECTION
4022 OTHER THAN UNDER SECTION 4022(C); //POST, P. 1016.// AND
(7) "NON-BASIC BENEFITS" MEANS BENEFITS GUARANTEED UNDER
SECTION 4022(C). //POST, P. 1016.//
(B) AN INDIVIDUAL WHO OWNS THE ENTIRE INTEREST IN AN UNINCORPORATED
TRADE OR BUSINESS IS TREATED AS HIS OWN EMPLOYER, AND A PARTNERSHIP IS
TREATED AS THE EMPLOYER OF EACH PARTNER WHO IS AN EMPLOYEE WITHIN THE
MEANING OF SECTION 401(C)(1) OF THE INTERNAL REVENUE CODE OF 1954. //29
USC 401.// FOR PURPOSES OF THIS TITLE, UNDER REGULATIONS PRESCRIBED BY
THE CORPORATION, ALL EMPLOYEES OF TRADES OR BUSINESSES (WHETHER OR NOT
INCORPORATED) WHICH ARE UNDER COMMON CONTROL SHALL BE TREATED AS
EMPLOYED BY A SINGLE EMPLOYER AND ALL SUCH TRADES AND BUSINESSES AS A
SINGLE EMPLOYER. THE REGULATIONS PRESCRIBED UNDER THE PRECEDING
SENTENCE SHALL BE CONSISTENT AND COEXTENSIVE WITH REGULATIONS PRESCRIBED
FOR SIMILAR PURPOSES BY THE SECRETARY OF THE TREASURY UNDER SECTION
414(C) OF THE INTERNAL REVENUE CODE OF 1954. //ANTE, P. 925.//
SEC. 4002. (A) THERE IS ESTABLISHED WITHIN THE DEPARTMENT OF LABOR A
BODY CORPORATE TO BE KNOWN AS THE PENSION BENEFIT GUARANTY CORPORATION
SHALL BE ADMINISTRATED BY THE CHAIRMAN OF THE BOARD OF DIRECTORS IN
ACCORDANCE WITH POLICIES ESTABLISHED BY THE BOARD. THE PURPOSES OF THIS
TITLE, WHICH ARE TO BE CARRIED OUT BY THE CORPORATION, ARE--
(1) TO ENCOURAGE THE CONTINUATION AND MAINTENANCE OF VOLUNTARY
PRIVATE PENSION PLANS FOR THE BENEFIT OF THIER PARTICIPANTS,
(2) TO PROVIDE FOR THE TIMELY AND UNITERRUPTED PAYMENT OF
PENSION BENEFITS TO PARTICIPANTS AND BENEFICIARIES UNDER PLANS TO
WHICH THIS TITLE APPLIES, AND
(3) TO MAINTAIN PREMIUMS ESTABLISHED BY THE CORPORATION UNDER
SECTION 4006 //POST, P. 1010.// AT THE LOWEST LEVEL CONSISTENT
WITH CARRYING OUT ITS OBLIGATIONS UNDER THIS TITLE.
(B) TO CARRY OUT THE PURPOSES OF THIS TITLE, THE CORPORATION HAS THE
POWERS CONFERRED ON A NONPROFIT CORPORATION UNDER THE DISTRICT OF
COLUMBIA NONPROFIT CORPORATION ACT AND, IN ADDITION TO ANY SPECIFIC
POWER GRANTED TO THE CORPORATION ELSEWHERE IN THIS TITLE OR UNDER THAT
ACT, THE CORPORATION HAS THE POWER--
(1) TO SUE AND BE SUED, COMPLAIN AND DEFEND, IN ITS CORPORATE
NAME AND THROUGH ITS OWN COUNSEL, IN ANY COURT, STATE OR FEDERAL;
(2) TO ADOPT, ALTER, AND USE A CORPORATE SEAL, WHICH SHALL BE
JUDICIALLY NOTICED;
(3) TO ADOPT, AMEND, AND REPEAL, BY THE BOARD OF DIRECTORS,
BYLAWS, RULES, AND REGULATIONS RELATING TO THE CONDUCT OF ITS
BUSINESS AND THE EXERCISE OF ALL OTHER RIGHTS AND POWERS GRANTED
TO IT BY THIS ACT;
(4) TO CONDUCT ITS BUSINESS (INCLUDING THE CARRYING ON OF
OPERATIONS AND THE MAINTENANCE OF OFFICES) AND TO EXERCISE ALL
OTHER RIGHTS AND POWERS GRANTED TO IT BY THIS ACT IN ANY STATE OR
OTHER JURISDICTION WITHOUT REGARD TO QUALIFICATION, LICENSING, OR
OTHER REQUIREMENTS IMPOSED BY LAW IN SUCH STATE OR OTHER
JURISDICTION;
(5) TO LEASE, PURCHASE, ACCEPT GIFTS OR DONATIONS OF, OR
OTHERWISE TO ACQUIRE, TO OWN, HOLD, IMPROVE, USE, OR OTHERWISE
DEAL IN OR WITH, AND TO SELL, CONVEY, MORTAGE, PLEDGE, LEASE,
EXCHANGE, OR OTHERWISE DISPOSE OF, ANY PROPERTY, REAL, PERSONAL,
OR MIXED, OR ANY INTEREST THEREIN WHEREEVER SITUATED;
(6) TO APPOINT AND FIX THE COMPENSATION OF SUCH OFFICERS,
ATTORNEYS, EMPLOYEES, AND AGENTS AS MAY BE REQUIRED, TO DETERMINE
THEIR QUALIFICATION, TO DEFINE THEIR DUTIES, AND, TO THE EXTENT
DESIRED BY THE CORPORATION, REQUIRE BONDS FOR THEM AND FIX THE
PENALTY THEREOF, AND TO APPOINT AND FIX THE COMPENSATION OF
EXPERTS AND CONSULTANTS IN ACCORDANCE WITH THE PROVISIONS OF
SECTION 3109 OF TITLE 5, UNITED STATES CODE; //80 STAT. 416.//
(7) TO UTILIZE THE PERSONNEL AND FACILITIES OF ANY OTHER AGENCY
OR DEPARTMENT OF THE UNITED STATES GOVERNMENT, WITH OR WITHOUT
REIMBURSEMENT, WITH THE CONSENT OF THE HEAD OF SUCH AGENCY OR
DEPARTMENT; AND
(8) TO ENTER INTO CONTRACTS, TO EXECUTE INSTRUMENTS, TO INCUR
LIABILITIES, AND TO DO ANY AND ALL OTHER ACTS AND THINGS AS MAY BE
NECESSARY OR INCIDENTAL TO THE CONDUCT OF ITS BUSINESS AND THE
EXERCISE OF ALL OTHER RIGHTS AND POWERS GRANTED TO THE CORPORATION
BY THIS ACT.
(C) SECTION 5108 OF TITLE 5, UNITED STATES CODE, IS AMENDED BY ADDING
AT THE END THEREOF THE FOLLOWING NEW SUBSECTION:
"(G) IN ADDITION TO THE NUMBER OF POSITIONS AUTHORIZED BY SUBSECTION
(A), THE PENSION BENEFIT GUARANTY CORPORATION IS AUTHORIZED, WITHOUT
REGARD TO ANY OTHER PROVISION OF THIS SECTION, TO PLACE ONE POSITION IN
THE CORPORATION AT GS-18 AND A TOTAL OF 10 POSTITIONS IN THE CORPORATION
AT GS-16 AND 17.".
(D) THE BOARD OF DIRECTORS OF THE CORPORATION CONSISTS OF THE
SECRETARY OF THE TREASURY, THE SECRETARY OF LABOR, AND THE SECRETARY OF
COMMERCE. MEMBERS OF THE BOARD SHALL SERVE WITHOUT COMPENSATION, BUT
SHALL BE REIMBURSED FOR TRAVEL, SUBSISTENCE, AND OTHER NECESSARY
EXPENSES INCURRED IN THE PERFORMANCE OF THEIR DUTIES AS MEMBERS OF THE
BOARD. THE SECRETARY OF LABOR IS THE CHAIRMAN OF THE BOARD OF
DIRECTORS.
(E) THE BOARD OF DIRECTORS SHALL MEET AT THE CALL OF ITS CHAIRMAN, OR
AS OTHERWISE PROVIDED BY THE BYLAWS OF THE CORPORATION.
(F) AS SOON AS PRACTIBLE, BUT NOT LATER THAN 180 DAYS AFTER THE DATE
OF ENACTMENT OF THIS ACT, THE BOARD OF DIRECTORS SHALL ADOPT INITIAL
BYLAWS AND RULES RELATING TO THE CONDUCT OF THE BUSINESS OF THE
CORPORATION. THEREAFTER, THE BOARD OF DIRECTORS MAY ALTER, SUPPLEMENT,
OR REPEAL ANY EXISTING BYLAW OR RULE, AND MAY ADOPT ADDITIONAL BYLAWS
AND RULES FROM TIME TO TIME AS MAY BE NECESSARY. THE CHAIRMAN OF THE
BOARD SHALL CAUSE A COPY OF THE BYLAWS OF THE CORPORATION TO BE
PUBLISHED IN THE FEDERAL REGISTER NOT LESS OFTEN THAN ONCE EACH YEAR.
(G)(1) THE CORPORATION, ITS PROPERTY, ITS FRANCHISE, CAPITAL,
RESERVES, SURPLUS, AND ITS INCOME (INCLUDING, BUT NOT LIMITED TO, ANY
INCOME OF ANY FUND ESTABLISHED UNDER SECTION 4005), //POST, P. 1009.//
SHALL BE EXEMPT FROM ALL TAXATION NOW OR HEREAFTER IMPOSED BY ANY STATE
OR LOCAL TAXIONG AUTHORITY, EXCEPT THAT ANY REAL PROPERTY AND ANY
TANGIBLE PERSONAL PROPERTY (OTHER THAN CASH AND SECURITIES) OF THE
CORPORATION SHALL BE SUBJECT TO STATE AND LOCAL TAXATION TO THE SAME
EXTENT ACCORDING TO ITS VALUE AS OTHER REAL AND TANGIBLE PERSONAL
PROPERTY IS TAXED.
(2) THE RECEIPTS AND DISBURSEMENTS OF THE CORPORATION IN THE
DISCHARGE OF ITS FUNCTIONS SHALL NOT BE INCLUDED IN THE TOTALS OF THE
BUDGET OF THE UNITED STATES GOVERNMENT AND SHALL BE EXEMPT FROM ANY
GENERAL LIMITATIONS IMPOSED BY STATUTE ON BUDGET OUTLAYS OF THE UNITED
STATES. EXCEPT AS EXPLICITLY PROVIDED IN THIS TITLE, THE UNITED STATES
IS NOT LIABLE FOR ANY OBLIGATION OR LIABILITY INCURRED BY THE
CORPORATION.
(3) SECTION 101 OF THE GOVERNMENT CORPORATION CONTROL ACT (31 U.S.C.
846) //86 STAT. 1274.// IS AMENDED BY INSERTING BEFORE THE PERIOD A
SEMICOLON AND THE FOLLOWING: "AND PENSION BENEFIT GUARANTY
CORPORATION".
(H)(1) THERE IS ESTABLISHED AN ADVISORY COMMITTEE TO THE CORPORATION,
FOR THE PURPOSE OF ADVISING THE CORPORATION AS TO ITS POLICIES AND
PROCEDURES, RELATING TO (A) THE APPOINTMENT OF TRUSTEES IN TERMINATION
PROCEEDINGS, (B) INVESTMENT OF MONEYS, (C) WHETHER PLANS BEING
TERMINATED SHOULD BE LIQUIDATED IMMEDIATELY OR CONTINUED IN OPERATION
UNDER A TRUSTEE, AND (D) SUCH OTHER ISSUES AS THE CORPORATION MAY
REQUEST FROM TIME TO TIME. THE ADVISORY COMMITTEE MAY ALSO RECOMMEND
PERSONS FOR APPOINTMENT AS TRUSTEES IN TERMINATION PROCEEDINGS, MAKE
RECOMMENDATIONS WITH REPSECT TO THE INVESTMENT OF MONEYS IN THE FUNDS,
AND ADVISE THE CORPORATION AS TO WHETHER A PLAN SUBJECT TO BEING
TERMINATED SHOULD BE LIQUIDATED IMMEDIATELY OR CONTINUED IN OPERATION
UNDER A TRUSTEE.
(2) THE ADVISORY COMMITTEE CONSISTS OF SEVEN MEMBERS APPOINTED, FROM
AMONG INDIVIDUALS RECOMMENDED BY THE BOARD OF DIRECTORS, BY THE
PRESIDENT. OF THE SEVEN MEMBERS, TWO SHALL REPRESENT THE INTERESTS OF
EMPLOYERS WHO MAINTAIN PENSION PLANS, AND THREE SHALL REPRESENT THE
INTERESTS OF THE GENRAL PUBLIC. THE PRESIDENT SHALL DESIGNATE ONE
MEMBER AS CHAIRMAN AT THE TIME OF THE APPOINTMENT OF THAT MEMBER.
(3) MEMBERS SHALL SERVE FOR TERMS OF 3 YEARS RACH, EXCEPT THAT, OF
THE MEMBERS FIRST APPOINTED, ONE OF THE MEMBERS REPRESENTING THE
INTERESTS OF EMPLOYEE ORGANIZATIONS, ONE OF THE MEMBERS REPRESENTING THE
INTERESTS OF EMPLOYERS, AND ONE OF THE MEMBERS REPRESENTING THE INTEREST
OF THE GENERAL PUBLIC SHALL BE APPOINTED FOR TERMS OF 2 YEARS EACH, ONE
OF THE MEMBERS REPRESENTING THE INTERESTS OF THE GENERAL PUBLIC SHALL BE
APPOINTED FOR A TERM OF 1 YEAR, AND THE OTHER MEMBERS SHALL BE APPOINTED
FOR FULL 3-YEAR TERMS. THE ADVISORY COMMITTEE SHALL MEET AT LEAST SIX
TIMES EACH YEAR AND AT SUCH OTHER TIMES AS MAY BE DETERMINED BY THE
CHAIRMAN OR REQUESTED BY ANY THREE MEMBERS OF THE ADVISORY COMMITTEE.
(4) MEMBERS SHALL BE CHOSEN ON THE BASIS OF THEIR EXPERIENCE WITH
EMPLOYEE ORGANIZATIONS, WITH EMPLOYERS WHO MAINTAIN PENSION PLANS, WITH
THE ADMINISTRATION OF PENSION PLANS, OR OTHERWISE ON ACCOUNT OF
OUTSTANDING DEMONSTRATED ABILITY IN RELATED FIELDS. OF THE MEMBERS
SERVING ON THE ADVISORY COMMITTEE AT ANY TIEM, NO MORE THAM FOUR SHALL
BE AFFILIATED WITH THE SAME POLITICAL PARTY.
(5) AN INDIVIDUAL APPOINTED TO FILL A VACANCY OCCURING OTHER THAN BY
THE EXPIRATION OF A TERM OF IFFICE SHALL BE APPOINTED ONLY FOR THE
UNEXPIRED TERM OF THE MEMBER HE SUCCEEDS. ANY VACANCY OCCURING IN THE
OFFICE OF A MEMBER OF THE ADVISORY COMMITTEE SHALL BE FILLED IN THE
MANNER IN WHICH THAT OFFICE WAS ORIGINALLY FILLED.
(6) THE ADVISORY COMMITTEE SHALL APPOINT AND FIX THE COMPENSATION OF
SUCH EMPLOYEES AS IT DETERMINES NECESSARY TO DISCHARGE ITS DUTIES,
INCLUDING EXPERTS AND CONSULTANTS IN ACCORDANCE WITH THE PROVISIONS OF
SECTION 3109 OF TITLE 5, UNITED STATES CODE. //80 STAT. 416.// THE
CORPORATION SHALL FURNISH TO THE ADVISORY COMMITTEE SUCH PROFESSIOANL,
SECRETARIAL, AND OTHER SERVICES AS THE COMMITTEE MAY REQUEST.
(7) MEMBERS OF THE ADVISORY COMMITTEE SHALL, FOR EACH DAY (INCLUDING
TRAVELTIME) DURING WHICH THEY ARE ATTENDING MEETINGS OR CONFERENCES OF
THE COMMITTEE OR OTHERWISE ENGAGED IN THE BUSINESS OF THE COMMITTEE, BE
COMPENSATED AT A RATE FIXED BY THE CORPORATION WHICH IS NOT IN EXCESS OF
THE DAILY EQUIVALENT OF THE ANNUAL RATE OF BASIC PAY IN EFFECT FOR GRADE
GS-18 OF THE GENERAL SCHEDULE, //5 USC 5332 NOTE.// AND WHILE AWAY FROM
THEIR HOMES OR REGULAR PLACES OF BUSINESS THEY MAY BE ALLOWED TRACEL
EXPENSES, INCLUDING PER DIEM IN LIEU OF SUBSISTENCE, AS AUTHORIZED BY
SECTION 5703 OF TITLE, UNITED STATES CODE.
(8) THE FEDERAL ADVISRY COMMITTEE ACT //86 STAT. 770, 5 USC APP.//
DOES NOT APPLY TO THE ADVISORY COMMITTE ESTABLISHED BY THIS SUBSECTION.
AGENCIES;
CIVIL ACTIONS //29 USC 1303.//
SEC. 4003. (A) THE CORPORATION MAY MAKE SUCH INVESTIGATIONS AS IT
DEEMS NECESSARY TO DETERMINE WHETER ANY PERSON HAS VIOLATED OR IS ABOUT
TO VIOLATE ANY PROVISION OF THIS TITLE OR ANY RULE OR REGULATION
THEREUNDER, AND MAY REQUIRE OR PERMIT ANY PERSON TO FILE WITH IT A
STATEMENT IN WRITING, UNDER OATH OR OTHERWISE AS THE CORPORATION SHALL
DETERMINE, AS TO ALL THE FACTS AND CIRCUMSTANCES CONCERNING THE MATTER
TO BE INVESTIGATED
(B) FOR THE PURPOSE OF ANY SUCH INVESTIGATION, OR NAY OTHER
PROCEEDING UNDER THIS TITLE, ANY MEMBER OF THE BOARD OF DIRECTORS OF THE
CORPORATION, OR ANY OFFICER DESIGNATED BY THE CHAIRMAN, MAY ADMIONISTER
OATHS AND AFFIRMATIONS, SUBPENA WITNESSES, COMPEL THEIR ATTENDANCE, TAKE
EVIDENCE, AND REQUIRE THE PRODUCTION OF ANY BOOKS, PAPERS,
CORRESPONDENCE, MEMORANDA, OR OTHER RECORDS WHICH THE CORPORATION DEEMS
RELEVANT OR MATERIAL TO THE INQUIRY.
(C) IN CASE OF CONTUMACY BY, OR REFUSAL TO OBEY A SUBPENA ISSUED TO,
ANY PERSON, THE CORPORATION MAY INVOKE THE AID OF ANY COURT OF THE
UNITED STATES WITHIN THE JURIDICTION OF WHICH SUCH INVESTIGATION OR
PROCEEDING IS CARRIED, OR WHERE SUCH PERSON RESIDES OR VARRIES ON
BUSINESS, IN REQUIRING THE ATTENDANCE AND TESTIMONY OF WITNESSES AND THE
PRODUCTION OF BOOKS, PAPERS, CORRESPONDENCE, MEMORANDA, AND OTHER
RECORDS. THE COURT MAY ISSUE AN ORDER REQUIRING SUCH PERSON TO APPEAT
BEFORE THE CORPORATION, OR MEMBER OR OFFICER DESIGNATED BY THE
CORPORATION, AND TO PRODUCE RECORDS OR TO GIVE TESTIMONY RELATED TO THE
MATTER UNDER INVESTIGATION OR IN QUESTION. ANY FAILURE TOOBEY SUCH
ORDER OF THE COURT MAY BE PUNISHED BY THE COURT AS A CONTEMPT THEREOF.
ALL PROCESS IN ANY SUCH CASE MAY BE SERVED IN THE JUDICIAL DISTRICT IN
WHICH SUCH PERSON IS AN INHABITANT OR MAY BE FOUND.
(D) IN ORDER TO AVOID UNNECESSARY EXPENSE AND DUPLICATION OF
FUNCTIONS AMONG GOVERNMENT AGENCIES, THE CORPORATION MAY MAKE SUCH
ARRANGEMENTS OR AGREEMENTS FOR COOPERATION OR MUTUAL ASSISTANCE IN THE
PERFORMANCE OF ITS FUNCTIONS UNDER THIS TITLE AS IS PRACTICABLE AND
CONSISTENT WITH LAW. THE CORPORATION MAY UTILIZE THE FACILITIES OR
SERVICES OF ANY DEPARTMENT, AGENCY, OR ESTABLISHMENT OF THE UNITED
STATES OR OF ANY STATE OR POLITICAL SUBDIVISION OF A STATE, UNCLUDING
THE SERVICES OF ANY OF ITS EMPLOYEES, WITH THE LAWFUL CONSENT OF SUCH
DEPARTMENT, AGENCY, OR ESTABLISHMENT. THE HEAD OF EACH DEPARTMENT,
AGENCY, OR ESTABLISHMENT OF THE UNITED STATES SHALL COOPERATE WITH THE
CORPORATION AND, TO THE EXTENT PERMITTED BY LAW, PROVIDE SUCH
INFORMATION AND FACILITIES AS IT MAY REQUEST FOR ITS ASSISTANCE IN THE
PERFORMANCE OF ITS FINCTIONS UNDER THIS TITLE. THE ATTORNEY GENERAL OR
HIS REPRESENTATIVE SHALL RECEIVE FROM THE CORPORATION FOR APPROPRIATE
ACTION SUCH EVIDENCE DEVELOPED IN THE PERFORMANCE OF ITS FUNCTIONS UNDER
THIS TITLE AS MAY BE FOUND TO WARRANT CONSIDERATION FOR CRIMINAL
PROSECUTION UNDER THE PROVISIONS OF THIS OR ANY OTHER FEDERAL LAW.
(E)(1) CIVIL ACTIONS MAY BE BROUGHT BY THE CORPORATION FOR
APPROPRIATE RELIEF, LEGAL OR EQUITABLE OR BOTH, TO REDRESS VIOLATIONS OF
THE PROVISIONS OF THIS TITLE.
(2) EXCEPT AS OTHERWISE PROVIDED IN THIS TITLE, WHERE SUCH AN ACTION
IS BROUGHT IN A DISTRICT COURT OF THE UNITED STATES, IT MAY BE BROUGHT
IN THE DISTRICT WHERE THE PLAN IS ADMINISTERED, WHERE THE VIOLATION TOOK
PLACE, OR WHERE A DEFENDANT RESIDES OR MAY BE FOUND, AND PROCESS MAY BE
SERVED IN ANY OTHER DISTRICT WHERE A DEFENDANT RESIDES OR MAY BE FOUND.
(3) THE DISTRICT COURTS OF THE UNITED STATES SHALL HAVE JURIDICTION
OF ACTIONS BROUGHT BY THE CORPORATION UNDER THIS TITLE WITHOUT REGARD TO
THE AMOUNT IN CONTROVERSY IN ANY SUCH ACTION.
(4) UPON APPLICATION BY THE CORPORATION TO A COURT OF THE UNITED
STATES FOR EXPEDITED HANDLING OF ANY CASE IN WHICH THE CORPORATION IS A
PARTY, IT IS THE DUTY OF THAT COURT TO ASSIGN SUCH CASE FOR HEARING AT
THE EARLIEST PRACTICAL DATE AND TO CAUSE SUCH CASE TO BE IN EVERY WAY
EXPEDITED.
(5) IN ANY ACTION BROUGHT UNDER THIS TITLE, WHETER TO COLLECT
PREMIUMS, PENALTIES, AND INTEREST UNDER SENTION 4007 //POST, P. 1013.//
OR ANY OTHER PURPOSE, THE COURT MAY AWARD TO THE CORPORATION ALL OR A
PORTION OF THE COSTS OF LITIGATION INCURRED BY THE CORPORATION IN
CONNECTION WITH SUCH ACTION.
(F) ANY PARTICIPANT, BENEFICIARY, PLAN ADMINISTRATOR, OR EMPLOYEE
ADVERSELY AFFECTED BY ANY ACTION OF THE CORPORATION, OR BY A RECEIVER OR
TRUSTEE APPOINTED BY THE CORPORATION, WITH RESPECT TO A PLAN IN WHICH
SUCH PARTICIPANT, BENEFICIARY, PLAN ADMINISTRATOR OR EMPLOYER HAS AN
INTEREST, MAY BRING AN ACTION AGAINST THE CORPORATION, RECEIVER, OR
TRUSTEE IN THE APPROPRIATE COURT. FOR PURPOSES OF THIS SUBSECTION THE
TERM "APPROPRIATE COURT" MEANS THE UNITED STATES DISTRICT COURT BEFORE
WHICH PROCEEDINGS UNDER SECTION 4041 OR 4042 OF THIS TITLE ARE BEING
CONDUCTED, OR IF NO SUCH PROCEEDINGS ARE BEING CONDUCTED THE UNITED
STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA. THE DISTRICT COURTS
OF THE UNITED STATES HAVE JURISDICTION OF ACTIONS BROUGHT UNDER THIS
SUBSECTION WITHOUT REGARD TO THE AMOUNT IN CONTROVERSY.
SEC. 4004. (A) NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS
TITLE, THE CORPORATION MAY, UPON RECEIPT OF NOTICE THAT A PLAN IS TO BE
TERMINATED OR UPON MAKING A DETERMINATION DESCRIBED IN SECTION 4042,
//POST, P. 1021.// APPOINT A RECEIVER WHOSE POWERS SHALL TAKE EFFECT
IMMEDIATELY. THE RECEIVER SHALL ASSUME CONTROL OF SUCH PLAN AND ITS
ASSETS, PROTECTING THE INTERESTS OF ALL INTERESTED PERSONS DURING
SUBSEQUENT PROCEEDINGS.
(B)(1) WITHIN A REASONABLE TIME, NOT EXCEEDING 20 DAYS, AFTER THE
APPOINTMENT OF A RECEIVER UNDER SUBSECTION (A), THE CORPORATION SHALL
APPLY TO AN APPROPRIATE UNITED STATES DISTRICT COURT FOR A DECREE
APPROVING SUCH APPOINTMENT. THE COURT TO WHICH APPLICATION SI MADE
SHALL ISSUED A DECREE APPROVING SUCH APPONTMENT UNLESS IT DETERMINES
THAT SUCH APPROVAL WOULD NOT BE IN THE BEST INTERESTS OF THE
PARTICIPANTS AND BENEFICIARIES OF THE PLAN.
(2) IF THE COURT TO WHICH THE APPLICATION IS MADE UNDER PARAGRAPH (1)
DISMISSES THE APPLICATION WITH PREJUDICE, OR IF THE CORPORATION FAILS TO
APPLY FOR A DECREE UNDER PARAGRAPH (1) WITHIN 20 DAYS AFTER THE
APPOINTMENT OF THE RECEIVER, THE RECEIVER SHALL TRANSFER ALL ASSETS AND
RECORDS OF THE PLAN HELD BY HIM TO THE PLAN ADMINISTRATOR WITHIN 3
BUSINESS DAYS AFTER SUCH DISMISSAL OR THE EXPIRATION OF THE 20 DAY
PERIOD. THE RECEIVER SHALL NOT BE LIABLE TO THE PLAN OR TO ANY OTHER
PERSON FOR HIS ACTS AS RECEIVER OTHER THAN FOR WILLFIL MISCONDUCT, OR
FOR CONDUCT IN VIOLATION OF THE PROVISIONS OF PART 4 OF SUBPART ] OF
TITLE I OF THIS ACT (EXCEPT TO THE EXTENT TAHT THE PROVISIONS OF SECTION
4042(D)(1)(A) PROVIDE OTHERWISE. //ANTE, P. 832.//
(C) THE CORPORATION IS AUTHORIZED, AS AN ALTERNATIVE TO APPONTING A
RECEIVER UNDER SUBSECTION (A), TO DIRECT A PLAN ADMINISTRATOR TO APPLY
TO A DISTRICT COURT OF THE UNITED STATES FOR THE APPOINTMENT OF A
RECEIVER TO ASSUME CONTROL OF THE PLAN AND ITS ASSETS FOR THE PURPOSE OF
PROTECTING THE INTERESTS OF ALL INTERESTED PERSONS UNTIL THE PLAN CAN BE
TERMINATED UNDER THE PROVISIONS OF THIS TITLE.
(D) A RECEIVER APPOINTED UNDER THIS SECTION HAS THE POWERS OF A
TRUSTEE UNDER SECTION 4042(D)(1)(A) AND (B), AND SHALL REPORT TO THE
CORPORATION AND THE COURT ON THE PLAN FROM TIME TO TIME AS REQUIRED BY
EITHER THE CORPORATION OR THE COURT. AS SOON AS PRACTICABLE AFTER HIS
APPOINTMENT, A RECEIVER APPOINTED UNDER THIS SECTION SHALL DETERMINE
WHETHER THE ASSETS OF THE PLAN ARE SUFFICIENT TO DISCHARGE WHEN DUE ALL
OBLIGATIONS OF THE PLAN WITH RESPECT TO BENEFITS GUARANTEED UNDER THIS
TITLE IN ACCORDANCE WITH THE REQUIREMENTS OF SECTION 4044. //POST, P.
1025.// IF THE DETERMINATION OF THE RECEIVER IS APPROVED BY THE
CORPORATION AND THE COURT, THE RECEIVER SHALL PROCEED AS IF HE WERE A
TRUSTEE APPOINTED UNDER SECTION 4042.
(E) A RECEIVER MAY NOT BE APPOINTED UNDER THIS SECTION MORE THAN 270
DAYS AFTER THE DATE OF ENACTMENT OF THIS ACT.
(F) IN ADDITION TO ITS OTHER POWERS UNDER THIS TITLE, FOR ONLY THE
FIRST 270 DAYS AFTER THE DATE OF ENACTMENT OF THIS ACT THE CORPORATION
MAY--
(1) CONTRACT FOR PRINTING WITHOUT REGARD TO THE PROVISIONS OF
CHAPTER 5 OF TITLE 44, UNITED STATES CODE, //44 USC 501.//
(2) WAIVE ANY NOTICE REQUIRED UNDER THIS TITLE IF THE
CORPORATION FINDS THAT A WAIVER IS NECESSARY OR APPROPRIATE,
(3) EXTEND THE 90-DAY PERIOD REFERRED TO IN SECTION 4041(A)
//POST, P. 1020.// FOR AN ADDITIONAL 90 DAYS WITHOUT THE AGREEMENT
OF THE PLAN ADMINISTRATOR AND WITHOUT APPLICATION TO A COURT AS
REQUIRED UNDER SECTION 4041(D), AND
(4) WAIVE THE APPLICATION OF THE PROVISIONS OF SECTIONS 4062,
4063, AND 4064 TO, //POST, P. 1029, 1030.// OR REDUCE THE
LIABILITY IMPOSED UNDER SECTIONS ON, ANY EMPLOYER WITH RESPECT TO
A PLAN TERMINATIN DURING THAT 270 DAY PERIOD IF THE CORPORATION
DETERMINES THAT SUCH WAIVER OR REDUCTION IS NECESSARY TO AVOID
UNREASONABLE HARDSHIP IN ANY CASE IN EHICH THE EMPLOYER WAS NOT
ABLE, AS A PRACTICAL MATTER, TO CONTINUE THE PLAN.
SEC. 4005. (A) THERE ARE ESTABLISHED ON THE BOOKS OF THE TREASURY OF
THE UNITED STATES FOUR REVOLVING FUNDS TO BE USED BY THE CORPORATION IN
CARRYING OUT ITS DUTIES UNDER THIS TITLE. ONE OF THE FUNDS SHALL BE
USED IN CONNECTION WITH BENEFITS GUARANTEED UNDER SECTIONS 4022 AND 4023
//POST, PP. 1016 - 1018.// (BUT NOT NON-BASIC BENEFITS) WITH RESPECT TO
PLANS OTHER THAN MULTIEMPLOYER PLANS, ONE OF THE FUNDS SHALL BE USED
WITH RESPECT TO SUCH BENEFITS GUARANTEED UNDER SUCH SECTIONS (OTHER THAN
NON-BASIC BENEFITS) FOR MULTIEMPLOYER PLANS, ONE OF THE FUNDS SHALL BE
USED WITH RESPECT TO NON-BASIC BENEFITS, IF ANY ARE GUARANTEED BY THE
CORPORATION UNDER SECTION 4022, FOR PLANS WHICH ARE NOT MULTIEMPLOYER
PLANS, AND THE REMAINING FUND SHALL BE USED WITH RESPECT TO NON-BASIC
BENEFITS, IF ANY ARE GUARANTEED BY THE CORPORATION UNDER SECTION 4022,
FOR MULTIEMPLOYER PLANS. WHENEVER IN THIS TITLE REFERENCE IS MADE TO
THE TERM "FUND" THE REFERENCE SHALL BE CONSIDERED TO REFER TO THE
APPROPRIATE FUND ESTABLISHED UNDER THIS SECTION.
(B)(1) EACH FUND ESTABLISHED UNDER THIS SECTION SHALL BE CREDITED
WITH THE APPROPRIATE PORTION OF--
(A) FINDS BORROWED UNDER SUBSECTION (C),
(B) PREMIUMS, PENALTIES, INTEREST, AND CHARGES COLLECTED UNER
THIS TITLE,
(C) THE VALUE OF THE ASSETS OF A PLAN ADMINISTERED UNDER
SECTION 4042 BY A TRUSTEE TO THE EXTENT THAT THEY EXCEED THE
LIABILITIES OF SUCH PLAN,
(D) THE AMOUNT OF ANY EMPLOYER LIABILTY PAYMENTS UNDER SUBTITLE
D, TO THE EXTENT TAHT SUCH PAYMETNS EXCEED LIABILITIES OF THE PLAN
(TAKING INTO ACCOUNT ALL OTHER PLAN ASSETS),
(E) EARNINGS ON INVESTMENTS OF THE FUND OR ON ASSETS CREDITED
TO THE FUND UNDER THIS SUBSECTION, AND
(F) RECEIPTS FROM ANY OTHER OPERATIONS UNDER THIS TITLE.
(2) SUBJECT TO THE PROVISIONS OF SUBSECTION (A), EACH FUND SHALL BE
AVAILABLE--
(A) FOR MAKING SUCH PAYMENTS AS THE CORPORATION DETERMINES ARE
NECESSARY TO PAY BENEFITS GUARANTEED UNDER SECTION 4022,
(B) FOR MAKING SUCH PAYMENTS AS THE CORPORATION DETERMINES ARE
NECESSARY UNDER SECTION 4023,
(C) TO PURCHASE ASSETS FROM A PLAN BREING TERMINATED BY THE
CORPORATION WHEN THE CORPORATION DETERMINES SUCH PURCHASE WILL
BEST PROTECT THE INTERESTS OF THE CORPORATION, PARTICIPANTS IN THE
PLAN BEING TREMINATED, AND OTHER INSURED PLANS,
(D) TO REAPY THE SECRETARY OF THE TREASURY SUCH SUMS AS MAY BE
BORROWED (TOGETHER WITH INTEREST THEREON) UNDER SUBSECTION (C),
AND
(E) TO PAY THE OPERATIONAL AND ADMINISTRATIVE EXPENSES OF THE
CORPORATION, INCLUDING REIMBURSEMENT OF THE EXPENSES INCURRED BY
THE DEPARTMENT OF THE TREASURY IN MAINTAINING THE FUNDS, AND THE
COMPTROLLER GENERAL IN AUDITING THE CORPORATION.
(3) WHENEVER THE CORPORATION DETERMINES THAT THE MONEYS OF ANY FUND
ARE IN EXCESS OF CURRENT NEEDS, IT MAY REQUEST THE INVESTMENT OF SUCH
AMOUNTS AS IT DETERMINES ADVISABLE BY THE SECRETARY OF THE TREASURY IN
OBLIGATIONS ISSUED OR GUARANTEED BY THE UNITED STATES BUT, UNTIL ALL
BORROWINGS UNDER SUBSECTION (C) HAVE BEEN REPAID, THE OBLIGATIONS IN
WHICH SUCH EXCESS MONEYS ARE INVESTED MAY NOT YIELD A RATE OF RETURN IN
EXCESS OF THE RATE OF INTEREST PAYABLE ON SUCH BORROWINGS.
(C) THE CORPORATION IS AUTHORIZED TO ISSUE TO THE SECRETARY OF THE
TREASURY NOTES OR OTHER OBLIGATIONS IN AN AGGREGATE AMOUNT OF NOT TO
EXCEED $100,000,000, IN SUCH FORMS AND DENOMINATIONS, BEARING SUCH
MATURITIES, AND SUBJECT TO SUCH TERMS AND CONDITIONS AS MAY BE
PRESCRIBED BY THE SECRETARY OF THE TREASURY. SUCH NOTES OR OTHER
OBLIGATIONS SHALL BEAR INTEREST AT A RATE DETERMINED BY THE SECRETARY OF
THE TREASURY, TAKING INTO CONSIDERATION THE CURRENT AVERAGE MARKET YIELD
ON OUTSTANDING MARKETABLE OBLIGATIONS OF THE UNITED STATES OF COMPARABLE
MATURITIES DURING THE MONTH PRECEDING THE ISSUANCE OF SUCH NOTES OR
OTHER OBLIGATIONS OF THE CORPORATION. THE SECRETARY OF THE TREASURY IS
AUTHORIZED AND DIRECTED TO PURCHASE ANY NOTES OR OTHER OBLIGATIONS
ISSUED BY THE CORPORATION UNDER THIS SUBSECTION, AND FOR THAT PURPOSE HE
IS AUTHORIZED TO USE AS A PUBLIC DEBT TRANSACTION THE PROCEEDS FROM THE
SALE OF ANY SECURITIES ISSUED UNDER THE SECOND LIBERTY BOND ACT, //84
STAT. 830, 31 USC 757C.// AS AMENDED, AND THE PURPOSES FOR WHICH
SECURITIES MAY BE ISSUED UNDER THAT ACT, AS AMENDED, ARE EXTENDED TO
INCLUDE ANY PURCHASE OF SUCH NOTES AND OBLIGATIONS. THE SECRETARY OF THE
TREASURY MAY AT ANY TIME SELL ANY OF THE NOTES OR OTHER OBLIGATIONS
ACQUIRED BY HIM UNDER THIS SUBSECTION. ALL REDEMPTIONS, PURCHASES, AND
SALES BY THE SECRETARY OF THE TREASURY OF SUCH NOTES OR OTHER
OBLIGATIONS SHALL BE TREATED AS PUBLIC DEBT TRANSACTIONS OF THE UNITED
STATES.
SEC. 4006. (A)(1) THE CORPORATION SHALL PRESCRIBE SUCH ISURANCE
PREMIUM RATES AND SUCH COVERAGE SCHEDULES FOR THE APPLICATION OF THOSE
RATES AS MAY BE NECESSARY TO PROVIDE SUFFICIENT REVENUS TO THE FUND FOR
THE CORPORATION TO CARRY OUT ITS FUNSTIONS UNDER THIS TITLE. THE
PREMIUM RATES CHARGED BY THE CORPORATION FOR ANY PERIOD SHALL BE UNIFORM
FOR ALL PLANS, OTHER THAN MULTIEMPLOYER PLANS INSURED BY THE
CORPORATION, WITH RESPECT TO BASIC BENEFITS GUARANTEED BY IT UNDERL
SECTION 4022, //POST, P. 1016.// AND SHALL BE UNIFORM FOR ALL
MULTIEMPLOYER PLANS WITH RESPECT TO BASIC BENEFITS GUARANTEED BY IT
UNDER SUCE SECTION. THE PREMIUM RATES CHARGED BY THE CORPORATION FOR
ANY PERIOD FOR NON-BASIC BENEFITS GUARANTEED, BY IT SHALL BE UNIFORM BY
CATEGORY OF NON-BASIC BENEFIT GUARANTEED, SHALL BE BASED ON THE RISK
INSURED IN EACH CATEGORY, AND SHALL REFLECT THE EXPERIENCE OF THE
CORPORATION (INCLUDING REASONABLY ANTICIPATED EXPERIENCE) IN
GUARANTEEING SUCH BENEFITS.
(2) THE CORPORATION SHALL MAINTAIN SEPARATE COVERAGE SCHEDULES FOR--
(A) BASIC BENEFITS GUARANTEED BY IT UNDER SECTION 4022 FOR--
(I) PLANS WHICH ARE MULTIEMPLOYER PLANS, AND
(II) PLANS WHICH ARE NOT MULTIEMPLOYER PLANS,
(B) EMPLOYERS INSURED UNDER SECTION 4023 //POST, P. 1019.//
AGAINST LIABILITY UNDER SUBTITLE D OF THIS TITLE, AND (C)
NON-BASIC BENEFITS.
EXCEPT AS PROVIDED IN PARAGRAPH (3), THE CORPORATION MAY REVISE SUCH
SCHEDULES WHENEVER IT DETERMINES THAT REVISED RATES ARE NECESSARY, BUT A
REVISED SCHEDULE DESCRIBED IN SUBPARAGRAPH (A) SHALL APPLY ONLY TO PLAN
YEARS BEGINNING MORE THAN 30 DAYS AFTER THE DATE ON WHICH THE CONGRESS
APPROVES SUCH REVISED SCHEDULE BY A CONCURRENT RESOLUTION.
(3) EXCEPT AS PROVIDED IN PARAGRAPH (4), THE RATE FOR ALL PLANS FOR
BENEFITS GUARANTEED UNDER SECTION 4022 //POST, P. 1016.// (OTHER THAN
NON-BASIC BENEFITS) WITHRESPECT TO PLAN YEARS ENDING NO MORE THAN 35
MONTHS AFTER THE EFFECTIVE DATE OF THIS TITLE IS--
(A) IN THE CASE OF EACH PLAN WHICH IS NOT A MULTIEMPLOYER PLAN,
AN AMOUNT EQUAL TO ONE DOLLAR FOR EACH INDIVIDUAL WHO IS A
PARTICIPANT IN SUCH PLAN AT ANY TIME DURING THE PLAN YEAR; AND
(B) IN THE CASE OF A MULTIEMPLOYER PLAN, AN AMOUNT EQUAL TO
FIFTY CENTS FOR EACH INDIVIDUAL WHO IS A PARTICIPANT IN SUCH PLAN
AT ANY TIME DURING SUCH PLAN YEAR.
THE RATE APPLICABLE UNDER THIS PARAGRAPH TO ANY PLAN THE PLAN YEAR OF
WHICH DOES NOT BEGIN ON THE DATE OF ENACTMENT OF THIS ACT IS A FRACTION
OF THE RATE DESCRIBED INT EH PRECEDING SENTENCE, THE NUMERATOR OF WHICH
IS THE NUMBER OF MONTHS WHICH END BEFORE THE DATE ON WHICH THE NEW PLAN
YEAR COMMENCES AND THE DENOMINATOR OF WHICH IS 12. THE CORPORATION IS
AUTHORIZED TO PRESCRIBE REGULATIONS UNDER WHICH THE RATE DESCRIBED IN
SUBPARAGRAPH (B) WILL NOT APPLY TO THE SAME PARTICIPANT IN ANY
MULTIEMPLOYER PLAN MORE THAN ONCE FOR NAY PLAN YEAR.
(4) UPON NOTIFICATION FILED WITH THE CORPORATION NOT LESS THAN 60
DAYS AFTER THE DATE ON WHCH THE CORPORATION PUBLISHES THE RATES
APPLICABLE UNDER PARAGRAPH (5), AT THE ELECTION OF A PLAN YEART TO WHICH
THIS SECTION APPLIES BEGINNING AFTER THE DATE OF ENACTMENT OF THIS ACT
SHALL BE THE GREATER OF--
(A) AN ALTERNATIVE RATE DETERMINED UNDER PARAGRAPH (5), OR
(B) ONE-HALF OF THE RATE APPLICABLE TO THE PLAN UNDER PARAGRAPH
(3).
IN THE CASE OF A MULTIEMPLOYER PLAN, THE RATE PRESCRIBED BY THIS
PARAGRAPH (AT THE ELECTION OF A PLAN) FOR THE SECOND FULL PLAN YEAR IS
ALSO THE APPLICABLE RATE FOR PLAN YEARS SUCCEEDING THE SECOND FULL PLAN
YEAR AND ENDING BEFORE THE FULL PLAN YEAR FIRST COMMENCING AFTER
DECEMBER 31, 1977.
(5) IN CARRYING OUT ITS AUTHORITY UNDER PARAGRAPH (1) TO ESTABLISH
PREMIUM RATES AND BASES FOR BASIC BENEFITS GUARANTEED UNDER SECTION 4022
THE CORPORATION SHALL ESTABLISH SUCH RATES AND BASES IN COVERAGE
SCHEDULES FOR PLAN YEARS BEGINNING 24 MONTHS OR MORE AFTER THE DATE OF
ENACTMENT OF THIS ACT IN ACCORDANCE WITH THE PROVISIONS OF THIS
PARAGRAPH. THE CORPORATION SHALL PUBLISH THE RATE SCHEDULES FIRST
APPLICABLE UNDER THIS PARAGRAPH IN THE FEDERAL REGISTER NOT LATER THAN
270 DAYS AFTER THE DATE OF ENACTMENT OF THIS ACT.
(A) THE CORPORATION MAY ESTABLISH ANNUAL PREMIUMS COMPOSED OF--
(I) A RATE APPLICABLE TO THE EXCESS, IF ANY, OF THE PRESENT
VALUE OF THE BASIC BENEFITS OF THE PLAN WHICH ARE GUARANTEED OVER
THE VALUE OF THE ASSETS OF THE PLAN, NOT IN EXCESS OF 0.1 PERCENT
FOR PLANS WHICH ARE NOT MULTIEMPLOYER PLANS, AND NOT IN EXCESS OF
0.025 PERCENT FOR MULTIEMPLOYER PLANS, AND
(II) AN ADDITIONAL CHARGE BASED ON THE RATE APPLICABLE TO THE
PRESENT VALUE OF THE BASIC BENEFITS OF THE PLAN WHICH ARE
GUARANTEED, DETERMINED SEPARATELY FOR MULTIEMPLOYER PLANS AND FOR
PLANS WHICH ARE NOT MULTIEMPLOYER PLANS. THE RATE FOR THE
ADDITIONAL CHARGE REFERRED TO ON CLAUSE (II) SHALL BE SET BY THE
CORPORATION FOR EVERY YEAR AT A LEVEL (DETERMINED SEPARATELY FOR
MULTIEMPLOYER PLANS AND FOR PLANS WHICH ARE NOT MULTIEMPLOYER
PLANS) WHICH THE CORPORATION ESTIMATES WILL YIELD TOTAL REVENUE
APPROXIMATELY EQUAL TO THE TOTAL REVENUE TO BE DERIVED BY THE
CORPORATION FROM THE PREMIUMS REFERRED TO IN CLAUSE (I) OF THIS
SUBPARAGRAPH.
(B) THE CORPORATION MAY ESTABLISH ANNUAL PREMIUMS BASED ON--
(I) THE NUMBER OF PARTICIPANTS IN A PLAN, BUT SUCH PREMIUM
RATES SHALL NOT EXCEED THE RATES DESCRIBED IN PARAGRAPH (3),
(II) UNFUNDED BASIC BENEFITS GUARANTEED UNDER THIS TITLE, BUT
SUCH PREMIUM RATES SHALL NOT EXCEED THE LIMITATIONS APPLICABLE
UNDER SUBPARAGRAPH (A)(I), OR
(III) TOTAL GUARANTEED BASIC BENEFITS, BUT SUCH PREMIUM RATES
MAY NOT EXCEED THE RATES DETERMINES UNDER SUBPARAGRAPH (A) (II).
IF THE CORPORATION USES 2 OR MORE OF THE RATE BASES DESCRIBED IN
THIS SUBPARAGRAPH, THE PREMIUM RATES SHALL BE DESIGNED TO PRODUCE
APPROXIMATELY EQUAL AMOUNTS OF AGGREGATE PREMIUM REVENUE FROM EACH
OF THE RATE BASES USED.
(6) THE CORPORATION SHALL BY REGULATION DEFINE THE TERMS "VALUE OF
THE ASSETS" AND "PRESENT VALUE OF THE BENEFITS OF THE PLAN WHICH ARE
GUARANTEED" IN A MANNER CONSISTENT WITH THE PURPOSES OF THIS TITLE AND
THE PROVISIONS OF THIS SECTION.
(B)(1) IN ORDER TO PLACE A REVISED COVERAGE SCHEDULE (OTHER THAN A
SCHEDULE DESCRIBED IN SUBSECTION (A)(2) (B) OR (C) IN EFFECT, THE
CORPORATION SHALL TRANSMIT THE PROPOSED SCHEDULE, ITS PROPOSED EFFECTIVE
DATE, AND THE REASONS FOR ITS PROPOSAL TO THE COMMITTEE ON WAYS AND
MEANS AND THE COMMITTEE ON EDUCATION AND LABOR OF THE HOUSE OF
REPRESENTATIVES, AND TO THE COMMITTEE ON FINANCE AND THE COMMITTEE ON
LABOR AND PUBLIC WELFARE OF THE SENATE.
(2) THE SUCCEEDING PARAGRAPHS OF THIS SUBSECTION ARE ENACTED BY
CONGRESS AS AN EXERCISE OF THE RULEMAKING POWER OF THE SENATE AND THE
HOUSE OF REPRESENTATIVES, RESPECTIVELY, AND AS SUCH THEY SHALL BE DEEMED
A PART OF THE RULES OF EACH HOUSE, RESPECTIVELY, BUT APPLICABLE ONLY
WITH RESPECT TO THE PROCEDURE TO BE FOLLOWED IN THAT HOUSE IN THE CASE
OF RESOLUTIONS DESCRIBED IN PARAGRAPH (3). THEY SHALL SUPERCEDE OTHER
RULES ONLY TO THE EXTENT THAT THEY ARE INCONSISTENT THEREWITH. THEY ARE
ENACTED WITH FULL RECOGNITION OF THE CONSTITUTIONAL RIGHT OF EITHER
HOUSE TO CHANGE THE RULES (SO FAR AS RELATING TO THE PROCEDURE OF THAT
HOUSE) AT ANY TIME, IN THE SAME MANNER AND TO THE SAME EXTENT AS IN THE
CASE OF ANY RULE OF THAT HOUSE.
(3) FOR THE PURPOSE OF THE SUCCEEDING PARAGRAPHS OF THIS SUBSECTION,
"RESOLUTION" MEANS ONLY A CONCURRENT RESOLUTION, THE MATTER AFTER THE
RESOLVING CLAUSE OF WHICH IS AS FOLLOWS: "THAT THE CONGRESS FAVORS THE
PROPSED REVISED COVERAGE SCHEDULE TRANSMITTED TO CONGRESS BY THE PENSION
BENEFIT GUARANTY CORPORATION ON ---.", THE BLANK SPACE THEREIN BEING
FILLED WITH THE DATE ON WHICH THE CORPORATION'S MESSAGE PROPOSING THE
RATE WAS DELIVERED.
(4) A RESOLUTION SHALL BE REFERRED TO THE COMMITTEE ON WAYS AND MEANS
AND THE COMMITTEE ON EDUCATION AND LABOR OF THE HOUSE OF REPRESENTATIVES
AND TO THE COMMITTEE ON FINANCE AND THE COMMITTEE ON LABOR AND PUBLIC
WELFARE OF THE SENATE.
(5) IF A COMMITTEE TO WHICH HAS BEEN REFERRED A RESOLUTION HAS NOT
REPORTED IT BEFORE THE EXPIRATION OF 10 CALENDAR DAYS AFTER ITS
INTRODUCTION, IT SHALL THEN (BUT NOT BEFORE) BE IN ORDER TO MOVE TO
DISCHARGE THE COMMITTEE FROM FURTHER CONSIDERATION OF THAT RESOLUTION,
OR TO DISCHARGE THE COMMITTEE FROM FURTHER CONSIDERATION OF ANY OTHER
RESOLUTION WITH RESPECT TO THE PROPOSED ADJUSTMENT WHICH HAS BEEN
REFERRED TO THE COMMITTEE. THE MOTION TO DISCHARGE MAY BE MADE ONLY BY
A PERSON FAVORING THE RESOLUTION, SHALL BE HIGHLY PRIVILEGED (EXCEPT
THAT IT MAY NOT BE MADE AFTER THE COMMITTEE HAS REPORTED A RESOLUTION
WITH RESPECT TO THE SAME PROPOSED RATE), AND DEBATE THEREON SHALL BE
LIMITED TO NOT MORE THAN 1 HOUR, TO BE DIVIDED EQUALLY BETWEEN THOSE
FAVORING AND THOSE OPPOSING THE RESOLUTION. AN AMENDMENT TO THE MOTION
IS NOT IN ORDER, AND IT IS NOT IN ORDER TO MOVE TO RECONSIDER THE VOTE
BY WHICH THE MOTION IS AGREED TO OR DISAGREED TO. IF THE MOTION TO
DISCHARGE IS AGREED TO OR DISAGREED TO, THE MOTION AMY NOT BE RENEWED,
NOR MAY ANOTHER MOTION TO DISCHARGE THE COMMITTEE BE MADE WITH RESPECT
TO ANY OTHER RESOLUTION WITH RESPECT TO THE SAME PROPOSED RATE.
(6) WHEN A COMMITTEE HAS REPORTED, OR HAS BEEN DISCHARGED FROM
FURTHER CONSIDERATION OF A RESOLUTION, IT IS AT ANY TIME THEREAFTER IN
ORDER (EVEN THOUGH A PREVIOUS MOTION TO THE SAM EFFECT HAS BEEN
DISAGREED TO) TO MOVE TO PROCEED TO THE CONSIDERATION OF THE RESOLUTION.
THE MOTION IS HIGHLY PRIVILEGED AND IS NOT DEBATABLE. AN AMENDMENT TO
THE MOTION IS NOT IN ORDER, AND IT IS NOT IN ORDER TO MOVE TO RECONSIDER
THE VOTE BY WHICH THE MOTION OS AGREED TO OR DISAGREED TO. DEBATE ON
THE RESOLUTION SHALL BE LIMITED TO NOT MORE THAN 10 HOURS, WHICH SHALL
BE DIVIDED EQUALLY BETWEEN THOSE FAVORING AND THOSE OPPOSING THE
RESOLUTION. A MOTION FURTHER TO LIMIT DEBATE IS NOT DEBATABLE. AN
AMENDMENT TO, OR MOTION TO RECOMMIT, THE RESOLUTION IS NOT IN ORDER, AND
IT IS NOT IN ORDER TO MOVE TO RECONSIDER THE VOTE BY WHICH THE
RESOLUTION IS AGREED TO OR DISAGREED TO.
(7) MOTIONS TO POSTPONE, MADE WITH RESPECT TO THE DISCHARGE FROM
COMMITTEE, OR THE CONSIDERATION OF, A RESOLUTION AND MOTIONS TO PROCEED
TO THE CONSIDERATION OF OTHER BUSINESS SHALL BE DECIDED WITHOUT DEBATE.
APPEALS FROM THE DECISIONS OF THE CHAIR RELATING TO THE APPLICATION OF
THE RULES OF THE SENATE OR THE HOUSE OF REPRESENTATIVES, AS THE CASE MAY
BE, TO THE PROCEDURE RELATING TO A RESOLUTION SHALL BE DECIDED WITHOUT
DEBATE.
SEC. 4007. (A) THE PLAN ADMINISTRATOR OF EACH PLAN SHALL PAY THE
PREMIUM IMPOSED BY THE CORPORATION UNDER THIS TITLE WITH RESPECT TO THAT
PLAN WHEN THEY ARE DUE. ANY EMPLOYER OBTAINING CONTINGENT LIABILITY
COVERAGE UNDER SECTION 4023 //POST, P. 1019.// SHALL PAY THE PREMIUMS
IMPOSED BY THE CORPORATION UNDER THAT SECTION WHEN DUE. PREMIUMS UNDER
THIS TITLE ARE PAYABLE AT THE TIME, AND ON AN ESTIMATED, ADVANCE, OR
OTHER BASIS, AS DETERMINED BY THE CORPORATION. PREMIUMS IMPOSED BY THIS
TITLE ON THE DATE OF ENACTMENT (APPLICABLE TO THAT PORTION OF ANY PLAN
YEAR DURING WHICH SUCH DATE OCCURS) ARE DUE WITHIN 30 DAYS AFTER SUCH
DATE. PREMIUMS IMPOSED BY THIS TITLE ON THE FIRST PLAN YEAR COMMENCING
AFTER THE DATE OF ENACTMENT OF THIS ACT ARE DUE WITHIN 30 DAYS AFTER
SUCH PLAN YEAR COMMENCES. PREMIUMS SHALL CONTINUE TO ACCRUE UNTIL A
PLAN'S ASSETS ARE DISTRIBUTED PURSUANT TO A TERMINATION PROCEDURE, OR
UNTIL A TRUSTEE IS APPOINTED PURSUANT TO SECTION 4042, //POST, P.
1025.// WHICHEVER IS EARLIER.
(B) IF ANY BASIC BENEFIT PREMIUM IS NOT PAID WHEN IT IS DUE THE
CORPORATION IS AUTHORIZED TO ASSESS A LATE PAYMENT CHARGE OF NOT MORE
THAN 100 PERCENT OF THE PREMIUM PAYMENT WHICH WAS NOT TIMELY PAID. THE
PRECEDING SENTENCE SHALL NOT APPLY TO ANY PAYMENT OF PREMIUM MADE WITHIN
60 DAYS AFTER THE DATE ON WHICH PAYMETN IS DUE, IF BEFORE SUCH DATE, THE
PLAN ADMINISTRATOR OBTAINS A WAIVER FROM THE CORPORATION BASED UPON A
SHOWING OF SUBSTATIAL HARDSHIP ARISING FROM THE TIMELY PAYMENT OF THE
PREMIUM. THE CORPORATION IS AUTHORIZED TO GRANT A WAIVER UNDER THIS
SUBSECTION UPON APPLICATION MADE BY THE PLAN ADMINISTRATOR, BUT THE
CORPORATION MAY NOT GRANT A WAIVER IF IT APPEARS THAT THE PLAN
ADMINISTRATOR WILL BE UNABLE TO PAY THE PREMIUM WITHIN 60 DAYS AFTER THE
DATE ON WHICH IT IS DUE. IF ANY PREMIUM IS NOT PAID BY THE LAST DATE
PRESCRIBED FOR A PAYMENT, INTEREST ON THE AMOUNT OF SUCH PREMIUM AT THE
RATE IMPOSED UNDER SECTION 6601(A) OF THE INTERNAL REVENUE CODE OF 1954
//26 USC 6601.// (RELATING TO INTEREST ON UNDERPAYMENT, NONPAYMENT, OR
EXTENSIONS OF TIME FOR PAYMENT OF TAX) SHALL BE PAID FOR THE PERIOD FROM
SUCH LAST DATE TO THE DATE PAID.
(C) IF ANY PLAN ADMINISTRATOR FAILS TO PAY A PREMIUM WHEN DUE, THE
CORPORATION IS AUTHORIZED TO BRING A CIVIL ACTION IN ANY DISTRICT COURT
OF THE UNITED STATES WITHIN THE JURISDICTIONOF HWICH THE PLAN ASSETS ARE
LOCATED, THE PALN IS ADMINISTERED, OR IN WHICH A DEFENDANT RESIDES OR IS
FOUND FOR THE RECOVERY OF THE AMOUNT OF THE PREMIUM PENALTY, AND
INTEREST, AND PROCESS MAY BE SERVED IN ANY OTHER DISTRICT. THE DISTRICT
COURTS OF THE UNITED STATES SHALL JURISDICTION OVER ACTIONS BROUGHT
UNDER THIS SUBSECTION BY THE CORPORATION WITHOUT REGARD TO THE AMOUNT IN
CONTROVERSY.
(D) THE CORPORATION SHALL NOT CEASE TO GUARANTEE BASIC BENEFITS ON
ACCOUNT OF THE FAILURE OF A PLAN ADMINISTRATOR TO PAY ANY PREMIUM WHEN
DUE.
SEC. 4008. AS SOON AS PRACTICABLE AFTER THE CLOSE OF EACH FISCAL
YEAR THE CORPORATION SHALL TRANSMIT TO THE PRESIDENT AND THE CONGRESS A
REPORT RELATIVE TO THE CONDUCT OF ITS BUSINESS UNDER THIS TITLE FOR THAT
FISCAL YEAR. THE REPORT SHALL INCLUDE FINANCIAL STATEMENTS SETTING
FORTH THE FINANCES OF THE CORPORATION AT THE END OF SUCH FISCAL YEAR AND
THE RESULT OF ITS OPERATIONS (INCLUDING THE SOURCE AND APPLICATION OF
ITS FUNDS) FOR THE FISCAL YEAR AND SHALL INCLUDE AN ACTUARIAL EVALUATION
OF THE EXPECTED OPERATIONS AND STAUS OF THE FUNDS ESTABLISHED UNDER
SECTION 4005 //ANTE, P. 1009.// FOR THE NEXT FIVE YEARS (INCLUDING A
DETAILED STATEMENT OF THE ACTUARIAL ASSUMPTIONS AND METHODS USED IN
MAKING SUCH EVALUATION).
SEC. 4009. THE CORPORATION SHALL PROVIDE ADVICE AND ASSISTANCE TO
INDIVIDUALS WITH RESPECT TO EVALUATING THE ECONOMIC DESIRABILITY OF
ESTABLISHING INDIVIDUAL RETIREMENT ACCOUNTS OR OTHER FORMS OF INDIVIDUAL
RETIREMENT SAVINGS FOR WHICH A DEDUCTION IS ALLOWABLE UNDER SECTION 219
OF THE INTERNAL REVENUE CODE OF 1954 //ANTE, P. 958.// AND WITH RESPECT
TO EVALUATING THE DESIRABILITY, IN PARTICULAR CASES, OF TRANSFERRING
AMOUNTS REPRESENTING AN EMPLOYEE'S INTEREST IN A QUALIFIED PLAN TO SUCH
AN ACCOUNT UPON THE EMPLOYEE'S SEPARATION FROM SERVICE WITH AN EMPLOYER.
SEC. 40219 (A) EXCEPT AS PROVIDED IN SUBSECTION (B), THIS SECTION
APPLIES TO ANY PLAN (INCLUDING A SUCCESSOR PLAN) WHICH, FOR A PLAN
YEAR--
(1) IS AN EMPLOYEE PENSION BENEFIT PLAN (AS DEFINED IN
PARAGRAPH (2) OF SECTION 3 OF THIS ACT) //ANTE, P. 833.//
ESTABLISHED OR MAINTAINED--
(A) BY AN EMPLOYER ENGAGED IN COMMERCE OR IN ANY INDUSTRY OR
ACTIVITY AFFECTING COMMERCE, OR
(B) BY ANY EMPLOYEE ORGANIZATION, OR ORGANIZATION REPRESENTING
EMPLOYEES, ENGAGED IN COMMERCE OR IN ANY INDUSTRY OR ACTIVITY
AFFECTING COMMERCE, OR
(C) BY BOTH WHICH HAS, IN PRACTICE, MET THE REQUIREMENTS OF
PART 1 OF SUBCHAPTER D OF CHAPTER 1 OF THE INTERNAL REVENUE CODE
OF 1954 //26 USC 401.// (AS IN EFFECT FOR THE PRECEDING 5 PLAN
YEARS OF THE PLAN) APPLICABLE TO PLANS DESCRIBED IN PARAGRAPH (2)
FOR THE PRECEDING 5 PLAN YEARS; OR
(2) IS, OR HAS BEEN DETERMINED BY THE SECRETARY OF THE TREASURY
TO BE, A PLAN DESCRIBED IN SECTION 401(A) OF THE INTERNAL REVENUE
CODE OF 1954, OR WHICH MEETS, OR HAS BEEN DETERMINED BY THE
SECRETARY OF THE TREASURY TO MEET, THE REQUIREMNETS OF SECTION
404(A) (2) OF SUCH CODE.
FOR PURPOSES OF THIS TITLE, A SUCCESSOR PLAN IS CONSIDERED TO BE A
CONTINUATION OF A PREDECESSORPLAN. FOR THIS PURPOSE, A SUCCESSOR PLAN
IS A PLAN WHICH COVERS A GROUP OF EMPLOYEES WHICH INCLUDES SUBSTANTIALLY
THE SAME EMPLOYEES AS A PREVIOUSLY ESTABLISHED PLAN, AND PROVIDES
SUBSTANTIALLY THE SAME BENEFITS AS THAT PLAN PROVIDED.
(B) THIS SECTION DOES NOT APPLY TO ANY PLAN--'
(1) WHICH IS AN INDIVIDUAL ACCOUNT PLAN, AS DEFINED IN
PARAGRAPH (34) OF SECTION 3 OF THIS ACT, //ANTE, P. 838.//
(2) ESTABLISHED AND MAINTAINED FOR ITS EMPLOYEES BY THE
GOVERNMENT OF THE UNITED STATES, BY THE GOVERNMETN OF ANY STATE OR
POLITICAL SUBDIVSION THEREOF, OR BY ANY AGENCY OR INSTRUMENTALITY
OF ANY OF THE FOREGOING, OR TO WHICH THE RAILROAD RETIREMENT ACT
OF 1935 OR 1937 APPLIES AND WHICH IS FINANCED BY CONTRIBUTIONS
REQUIRED UNDER THAT ACT, //45 USC 215 - 228 NOTES, 228A - 228S -
2.//
(3) WHICH IS A CHURCH PLAN AS DEFINED IN SECTION 414(E) OF THE
INTERNAL REVENUE CODE OF 1954, /ANTE, P. 925.// UNLESS THAT PLAN
HAS MADE AN ELECTION UNDER SECTION 410(D) OF SUCH CODE, //ANTE, P.
901.// AND HAS NOTIFIED THE CORPORATION IN ACCORDANCE WITH
PROCEDURES PRESCRIBED BY THE CORPORATION, THAT IT WISHES TO HAVE
THE PROVISIONS OF THIS PART APPLY TO IT,
(4)(A) ESTABLISHED AND MAINTAINED BY A SOCIETY, ORDER, OR
ASSOCIATION DESCRIBED IN SECTION 501(C) (8) OR (9) OF THE INTERNAL
REVENUE CODE OF 1954, //26 USC 501.// IF NO PART OF THE
CONTRIBUTIONS TO OR UNDER THE PLAN IS MADE BY EMPLOYERS OF
PARTICIPANTS IN THE PLAN, OR
(B) OF WHICH A TRUST DESCRIBED IN SECTION 501(C)N18) OF SUCH
CODE IS A PART;
(5) WHICH HAS NOT AT ANY TIME AFTER THE DATE OF ENACTMENT OF
THIS ACT PROVIDED FOR EMPLOYER CONTRIBUTIONS;
(6) WHICH IS UNFUNDED AND WHICH IS MAINTAINED BY AN EMPLOYER
PRIMARILY FOR THE PURPOSE OF PROVIDING DEFERRED COMPENSATION FOR A
SELECT GROUP OF MANAGEMENT OR HIGHLY COMPENSATED EMPLOYEES;
(7) WHICH IS ESTABLISHED AND MAINTAINED OUTSIDE OF THE UNITED
STATES PRIMARILY FOR THE BENEFIT OF INDIVIDUALS SUBSTANTIALLY ALL
OF WHOM ARE NONRESIDENT ALIENS;
(8) WHICH IS MAINTAINED BY AN EMPLOYER SOLELY FOR THE PURPOSE
OF PROVIDING BENEFITS FOR CERTAIN EMPLOYEES IN EXCESS OF THE
LIMITATIONS ON CONTRIBUTIONS AND BENEFITS IMPOSED BY SECTION 415
OF THE INTERNAL REVENUE CODE OF 1954 //ANTE, P. 979.// ON PLANS TO
WHICH THAT SECTION APPLIES, WITHOUT REGARD TO WHETHER THE PLAN IS
FUNDED, AND, TO THE EXTENT THAT A SEPARABLE PART OF A PLAN (AS
DETERMINED BY THE CORPORATION) MAINTAINED BY AN EMPLOYER IS
AMINTAINED FOR SUCH PURPOSE, THAT PART SHALL BE TREATED FOR
PURPOSES OF THIS TITLE, AS A SEPARATE PLAN WHICH IS AN EXCESS
BENEFITS PLAN;
(9) WHICH IS ESTABLISHED AND MAINTAINED EXCLUSIVELY FOR
SUBSTANTIAL OWNERS AS DEFINED IN SECTION 4022(B)(6); //POST, P.
1017.//
(10) OF AN INTERNATIONAL ORGANIZATION WHICH IS EXEMPT FROM
TAXATION UNDER THE INTERNATIONAL ORGANIZATIONS IMMUNITIES ACT;
//22 USC 288 NOTE.//
(11) MAINTAINED SOLELY FOR THE PURPOSE OF COMPLYING WITH
APPLICABLE WORKMEN'S COMPENSATION LAWS OR UNE,PLOYMENT
COMPENSATION OR DISABILITY INSURANCE LAWS;
(12) WHICH IS A DEFINED BENEFIT PLAN, TO THE EXTENT THAT IT IS
TREATED AS AN INDIVIDUAL ACCOUNT PLAN UNDER PARAGRAPH (35)(B) OF
SECTION 3 OF THIS ACT, //ANTE, P. 838.// OR
(13) ESTABLISHED AND MAINTAINED BY A PROFESSIOANL SERVICE
EMPLOYER WHICH DOES NOT AT ANY TIME AFTER THE DATE OF ENACTMENT OF
THIS ACT HAVE MORE THAN 25 ACTIVE PARTICIPANTS IN THE PLAN.
(C)(1) FOR PURPOSES OF SUBSECTION (B)(1), THE TERM "INDIVIDUAL
ACCOUNT PLAN" DOES NOT INCLUDE A PLAN UNDER WHICH A FIXED BENEFIT IS
PROMISED IF THE EMPLOYER OR HIS REPRESENTATIVE PARTICIPATED IN THE
DETERMINATION OF THAT BENEFIT.
(2) FOR PURPOSES OF THIS PARAGRAPH AND FOR PURPOSES OF SUBSECTION
(B)(13)--'
(A) THE TERM "PROFESSIONAL SERVICE EMPLOYER" MEANS ANY
PROPRIETORSHIP, PARTNERSHIP, CORPORATION, OR OTHER ASSOCIATION OR
ORGANIZATION (I) OWNED OR CONTROLLED BY PROFESSIONAL INDIVIDUALS
OR BY EXECUTORS OR ADMINISTRATORS OF PROFESSIONAL INDIVIDUALS,
(II) THE PRINCIPAL BUSINESS OF WHICH IS THE PERFORMANCE OF
PROFESSIONAL SERVICES, AND
(B) THE TERM "PROFESSIONAL INDIVIDUALS" INCLUDES BUT IS NOT
LIMITED TO, PHYSICIANS, DENTISTS, CHIROPRACTORS, OSTEOPATHS,
OPTOMETRISTS, OTHER LICENSED PRACTITIONERS OF THE HEALING ARTS,
ATTORNEYS AT LAW, PUBLIC ACCOUNTANTS, PUBLIC ENGINEERS,
ARCHITECTS, DRAFTSMEN, ACTUARIES, PSYCHOLOGISTS, SOCIAL OR
PHYSICAL SCIENTISTS, AND PERFORMING ARTISTS.
(3) IN THE CASE OF A PLAN ESTABLISHED AND MAINTAINED BY MORE THAN ONE
PRFESSIONAL SERVICE EMPLOYER, THE PLAN SHALL NOT BE TREATED AS A PLAN
DESCRIBED IN SUBSECTION (B)(13), IF AT ANT TIME AFTER THE DATE OF
ENACTMENT OF THIS ACT THE PLAN HAS MOR THAN 25 ACTIVE PARTICIPANTS.
SEC. 4022. (A) SUBJECT TO THE LIMITATIONS CONTAINED IN SUBSECTION
(B), THE CORPORATION SHALL GUARANTEE THE PAYMENT OF ALL NONFORFEITABLE
BENEFITS (OTHER THAN BENEFITS BECOMING NONFORFEITABLE SOLELY ON ACCOUNT
OF THE TERMINATION OF A PLAN) UNDER THE TERMS OF A PLAN WHICH TERMINATES
AT A TIME WHEN SECTION 4021 APPLIES TO IT.
(B)(1) EXCEPT TO THE EXTENT PROVIDED IN PARAGRAPH (8)--'
(A) NO BENEFITS PROVIDED BY A PLAN WHICH HAS BEEN IN EFFECT FOR
LESS THAN 60 MONTHS AT THE TIME THE PLAN TERMINATES SHALL BE
GUARANTEED UNDER THIS SECTION, AND
(B) ANY INCREASE IN THE AMOUNT OF BENEFITS UNDER A PLAN
RESULTING FROMA PLAN AMENDMENT WHICH WAS MADE, OR BECAME
EFFECTIVE, WHICHEVER IS LATER, WITHIN 60 MONTHS BEFORE THE DATE ON
WHICH THE PLAN TERMINATES SHALL BE DISREGARDED.
(2) FOR PURPOSES OF THIS SUBSECTION, THE TIME A SUCCESSOR PLAN
(WITHIN THE MEANING OF SECTION 4021(A)) HAS BEEN IN EFFECT INCLUDES THE
TIME PREVIOUSLY ESTABLISHED PLAN (WITHIN THE MEANING OF SECTION 4021(
A)) WAS IN EFFECT. FOR PURPOSES OF DETERMINING WHAT BENEFITS ARE
GUARANTEED UNDER THIS SECTION IN THE CASE OF A PLAN TO WHICH SECTION
4021 DOES NOT APPLY ON THE DAY AFTER THE DATE OF ENACTMENT OF THIS ACT,
THE 60 MONTH PERIOD REFERRED TO IN PARAGRAPH (1) SHALL BE COMPUTED
BEGINNING ON THE FIRST DATE ON WHICH SUCH SECTION DOES NOT APPLY TO THE
PLAN.
(3) THE AMOUNT OF MONTHLY BENEFITS DESCRIBED IN SUBSECTION (A)
PROVIDED BY A PLAN, WHICH ARE GUARANTEED UNDER THIS SECTION WITH RESPECT
TO A PARTICIPANT, SHALL NOT HAVE AN ACTURIAL VALUE WHICH EXCEEDS THE
ACTURIAL VALUE OF A MONTHLY BENEFIT IN THE FORM OF A LIFE ANNUITY
COMMENCING AT AGE 65 EQUAL TO THE LESSER OF --'
(A) HIS AVERAGE MONTHLY GROSS INCOME FROM HIS EMPLOYER DURING
THE 5 CONSECUTIVE CALENDAR YEAR PERIOD (OR, IF LESS, DURING THE
NUMBER OF CALENDAR YEARS IN SUCH PERIOD IN WHICH HE ACTIVELY
PARTICIPATE IN THE PLAN) DURING WHICH HIS GROSS INCOME FROM THAT
EMPLOYER WAS GREATER THAN DURING ANY OTHER SUCH PERIOD WITH THAT
EMPLOYER DETERMINED BY DIVIDING 1/12 OF THE SUM OF ALL SUCH GROSS
INCOME BY THE NUMBER OF SUCH CALENDAR YEARS IN EHICH HE HAD SUCH
GROSS INCOME, OR
(B) $750 MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS
THE CONTRIBUTION AND BENFEFIT BASE (DETERMINED UNDER SECTION 230
OF THE SOCIAL SECURITY ACT) //42 USC 1305.// IN EFFECT AT THE TIME
THE PLAN TERMINATES AND THE DENOMINATER OF WHICH IS SUCH
CONTRIBUTION AND BENEFIT BASE IN EFFECT IN CALENDAR YEAR 1974.
THE PROVISIONS OF THIS PARAGRAPH DO NOT APPLY TO NON-BASIC BENEFITS.
(4)(A) THE ACTURIAL VALUE OF A BENEFIT, FOR PURPOSES OF THIS
SUBSECTION, SHALL BE BE DETERMINED IN ACCORDANCE WITH REGULATION
PRESCRIBED BY THE CORPORATION.
(B) FOR PURPOSES OF PARAGRAPH (3)--'
(I) THE TERM "GROSS INCOME" MENAS "EARNED INCOME" WITHIN THE
MEANING OF SECTION 911(B) OF THE INTERNAL REVENUE CODE OF 1954
//29 USC 911.// (DETERMINED WITHOUT REGARD TO ANY COMMUNITY
PROPERTY LAWS),
(II) IN THE CASE OF A PARTICIPANT IN A PLAN UNDER WHICH
CONTRIBUTIONS ARE MADE BY MORE THAN ONE EMPLOYER, AMOUNTS RECEIVED
AS GROSS INCOME FROM ANY EMPLOYER UNDER THAT PLAN SHALL BE
AGGREGATED WITH AMOUNTS RECEIVED FROM ANY OTHER EMPLOYER UNDER
THAT PLAN DURING THE SAME PERIOD, AND
(III) ANY NON-BASIC BENEFIT SHALL BE DISREGARDED.
(5) NOTWITHSTANDING PARAGRAPH (3), NO PERSON SHALL RECIEVE FROM THE
CORPORATION FOR BASIC BENEFITS WITH RESPECT TO A PARTICIPANT AN AMOUNT,
OR AMOUNTS, WITH AN ACTURIAL VALUE WHICH EXCEEDS A MONTHLY BENEFIT IN
THE FORM OF A LIFE ANNUITY COMMENCING AT AGE 65 EQUAL TO THE AMOUNT
DETERMINED UNDER PARAGRAPH (3)(B) AT THE TIME OF THE LAST PLAN
TERMINATION.
(6)(A) FOR PURPOSES OF THIS TITLE, THE TERM "SUBSTANTIAL OWNER" MEANS
AN INDIVIDUAL WHO--'
(I) OWNS THE ENTIRE INTEREST IN AN UNINCORPORATED TRADE OR
BUSINESS,
(II) IN THE CASE OF A PARTNERSHIP, IS A PARTNER WHO OWNS,
DIRECTLY OR INDIRECTLY, MORE THAN 10 PERCENT OF EITHER THE CAPITAL
INTEREST OR THE PROFITS INTEREST IN SUCH PARTNERSHIP, OR
(III) IN THE CASE OF A CORPORATION, OWNS, DIRECTLY OR
INDIRECTLY, MORE THAN 10 PERCENT IN VALUE OF EITHER THE VOTING
STOCK OF THAT CORPORATION OR ALL THE STOCK OF THAT CORPORATION.
FOR PURPOSES OF CLAUSE (III) THE CONSTRUCTIVE OWNERSHIP RULES OF SECTION
1563(E) OF THE INTERNAL REVENUE CODE OF 1954 //29 USC 1563.// SHALL
APPLY (DETERMINED WITHOUT REGARD TO SECTION 1563(E)(3)(C)). FOR
PURPOSES OF THIS TITLE AN INDIVIDUAL IS ALSO TREATED AS A SUBSTANTIAL
OWNER WITH RESPECT TO A PLAN IF, AT ANY TIME WITHIN THE 60 MONTHS
PRECEDING THE DATE ON WHICH THE DETERMINATION IS MADE, HE WAS A
SUBSTANTIAL OWNER UNDER THE PLAN.
(B) IN THE CASE OF A PARTICIPANT IN A PLAN UNDER WHICH BENEFITS HAVE
NOT BEEN INCREASED BY REASON OF ANY PLAN AMENDMENTS AND WHO IS COVERED
BY THE PLAN AS A SUBSTANTIAL OWNER, THE AMOUNT OF BENEFITS GUARANTEED
UNDER THIS SECTION SHALL NOT EXCEED THE PRODUCT OF--'
(I) A FRACTION (NOT TO EXCEED 1) THE NUMERATOR OF WHICH IS THE
NUMBER OF YEARS THE SUBSTANTIAL OWNER WAS AN ACTIVE PARTICIPANT IN
THE PLAN, AND THE DENOMINATOR OF WHICH IS 30, AND
(II) THE AMOUNT OF THE SUBSTANTIAL OWNER'S MONTHLY BENEFITS
GUARANTEED UNDER SUBSECTION (A) (AS LIMITED UNDER PARAGRAPH (3) OF
THIS SUBSECTION).
(C) IN THE CASE OF A PARTICIPANT IN A PLAN, OTHER THAN A PLAN
DESCRIBED IN SUBPARAGRAPH (B), WHI IS COVERED BY THE PLAN AS A
SUBSTATNIAL OWNER, THE AMOUNT OF THE BENEFIT GUARANTEED UNDER THIS
SECTION SHALL, UNDER REGULATIONS PRESCRIBED BY THE CORPORATION, TREAT
EACH BENEFIT INCREASE ATTRIBUTABLE TO A PLAN AMENDMENT AS IF IT WERE
PROVIDED UNDER A NEW PLAN. THE BENEFITS GUARANTEED UNDER THIS SECTION
WITH RESPECT TO ALL SUCH AMENDMENTS SHALL NOT EXCEED THE AMOUNT WHICH
WOULD BE DETERMINED UNDER SYBPARAGRAPH (B) IF WUBPARAGRAPH (B) APPLIED.
(7)(A) NO BENEFITS ACCRUED UNDER A PLAN AFTER THE DATE ON WHICH THE
SECRETARY OF THE TREASURY ISSUES NOTICE THAT HE HAS DETERMINED THAT ANY
TRUST WHICH IS A PART OF A PLAN DOES NOT MEET THE REQUIREMENTS OF
SECTION 401(A) OF THE INTERNAL REVENUE CODE OF 1954, //26 USC 401.// OR
THAT THE PLAN DOES NOT MEET THE REQUIREMENTS OF SECTION 404(A)(2) OF
SUCH CODE, //26 USC 404.// ARE GUARANTEED UNDER THIS SECTION UNLESS SUCH
DETERMINATION IS ERRONEOUS. THIS SUBPARAGRAPH DOES NOT APPLY IF THE
SECRETAYR SUBSEQUENTLY ISSUES A NOTIVE THAT SUCH TRUST MEETS THE
REQUIREMTNS OF SECTION 401(A) OF SUCH CODE OR THAT THE PLAN MEETS THE
REQUIREMTNS OF SECTION 404 (A)(2) OF SUCH CODE AND IF THE SECRETARY
DETERMINES THAT THE TRUST OR PLAN HAS TAKEN ACTION NECESSARY TO MEET
SUCH REQUIREMTNS DRUING THE PERIOD BETWEEN THE ISSUANCE OF THE NOTICE
REFERRED TO IN THE PRECEDING SENTENCE AND THE ISSUANCE OF THE NOTICE
REFERRED TO IN THIS SENTENCE.
(B) NO BENEFITS ACCRUED UNDER A PLAN AFTER THE DATE ON WHICH AN
AMENDMENT OF THE PLAN IS ADOPTED WHICH CAUSES THE SECRETARY OF THE
TREASURY TO DETERMINE THAT ANY TRUST UNDER THE PLAN HAS CEASED TO MEET
THE REQUIREMENTS OF SECTION 401(A) OF THE INTERNAL REVENUE CODE OF 1954
OR THAT THE PLAN HAS CEASED TO MEET THE REQUIREMENTS OF SECTION 404(A)(
2) OF SUCH CODE, ARE GUARANTEED UNDER THIS SECTION UNLESS SUCH
DETERMINATION IS ERRONEOUS. THIS SUBPARAGRAPH SHALL NOT APPLY IF THE
AMENDMENT IS REVOKED AS OF THE DATE IT WAS FIRST EFFECTIVE OR AMENDED
COMPLY WITH SUCH REQUIREMENTS.
(8) BENEFITS DESCRIBED IN PARAGRAPH (1) ARE GUARNATEED ONLY TO THE
EXTENT OF THE GREATER OF--'
(A) 20 PERCENT OF THE AMOUNT WHICH, BUT FOR THE FACT THAT THE
PLAN OR AMENDMENT HAS NOT BEEN IN EFFECT FOR 60 MONTHS OR MORE,
WOULD BE GUARANTEED UNDER THIS SECTION, OR
(B) $20 PER MONTH,
MULTIPLIED BY THE NUMBER OF YEARS (BUT NOT MORE THAN 5) THE PLAN OR
AMENDMENT, AS THE CASE MAY BE, HAS BEEN IN EFFECT. IN DETERMINING HOW
MANY YEARS A PLAN OR AMENDMENT HAS BEEN IN EFFECT FOR PURPOSES OF THIS
PARAGRAPH, THE FIRST 12 MONTHS FOLLOWING THE DATE ON WHICH THE PLAN OR
AMENDMENT IS MADE OR FIRST BECOMES EFFECTIVE (WHICHEVER IS LATER)
CONSTITUTES ONE YEAR, AND EACH CONSECUTIVE PERIOD OF 12 MONTHS
THEREAFTER CONSTITUTES AN ADDITIONAL YEAR. THIS PARAGRAPH DOES NOT
APPLY TO BENEFITS PAYABLE UNDER A PLAN UNLESS THE CORPORATION FINDS
SUBSTANTIAL EVIDENCE THAT THE PLAN WAS TERMINATED FOR A REASONABLE
BUSINESS PURPOSE AND NOT FOR THE PURPOSE OF PBTAINING THE PAYMENT OF
BENEFITS BY THE CORPORATION UNDER THIS TITLE.
(C) THE CORPORATION IS AUTHORIZED TO GUARANTEE THE PAYMENT OF SUCH
OTHER CLASSES OF BENEFITS AND TO ESTABLISH THE TERMS AND CONDITIONS
UNDER WHICH SUCH OTHER CLASSES OF BENEFITS ARE GUARANTEED AS IT
DETERMINES TO BE APPROPRIATE.
SEC. 4023. (A) THE CORPORATION SHALL INSURE ANY EMPLOYER WHO
MAINTAINS OR CONTRIBUTES TO OR UNDER A PLAN TO WHICH SECTION 4021
//ANTE, P. 1014.// APPLIES AGAINST THE PAYMENT OF ANY LIABILTY IMPOSED
ON HIM UNDER SUBTITLE D //POST, P. 1029.// OF THIS TITLE IN THE EVENT OF
A TERMINATION OF THAT PLAN. THE CORPORATION MAY DEVELOP ARRANGEMENTS
WITH PERSONS ENGAGED IN THE BUSINESS OF PROVIDING INSURANCE UNDER WHICH
THE INSURANCE COVERAGE DESCRIBED IN THE PRECEDING SENTENCE COULD BE
PROVIDED IN WHILE OR IN PART BY SUVH PRIVATE INSURERS. IN DEVELOPING
SUCH ARRANGEMENTS THE CORPORATION SHALL DEVISE A SYSTEN UNDER WHICH
RISKS ARE EQUIABLY DISTRIBUTED BETWEEN THE CORPORATION AND PRIVATE
INSURERS WITH RESPECT TO THE CLASSES OF EMPLOYERS INSURED BY EACH.
(B) THE CORPORATION IS AUTHORIZED TO PRESCRIBE AND COLLECT IN SUCH
MANNER AS IT DETERMINES TO BE APPROPRIATE PREMIUMS FOR INSURANCE OFFERED
UNDER SUBSECTION (A). IF THE CORPORATIO REQUIRES ALL EMPLOYERS TO WHICH
THIS TITLE APPLIES TO PURCHASE COVERAGE INDER THIS SECTION, THE
PROVISIONS OF SECTION 4007 (B) AND (C) //ANTE, P. 1013.// APPLY TO THE
COLLECTION OF PREMIUMS UNDER THIS SECTIOMN.. THE PREMIUMS SHALL BE
DETERMINE BY THE CORPORATION AND REVISED BY IT FROM TIME TO TIME AS MAY
BE NECESSARY, AND SHALL BE CHARAGABLE AT A RATE SUFFICIENT TO FUND ANY
PAYMENT BY THE CORPORATION BECOMING NECESSARY SUCH COVERAGE.
(C) IF THE CORPORATION IS, IN ITS DETERMINATION, ABLE TO DEVELOP A
SATISFACTORY AGREEMENT WITH PRIVATE INSURERS, WITHIN 36 MONTHS AFTER THE
DATE OF ENACTMENT OF THIS ACT, TO CARRY OUT THE PROGRAM OF INSURANCE
AUTHORIZED TO REQUIRE EMPLOYERS TO ELECT COVERAGE BY SUCH PRIVATE
INSURANCE OR BY THE CORPORATION AT SUCH TIMES AND IN SUCH MANNER AS THE
CORPORATION DETERMINES NECESSARY.
(D) NO PAYMENT MAY BE MADE BY THE CORPORATION UNDER ANY INSURANCE
PROVIDED BY IT UNDER THIS SECTION UNLESS THE PREMIUMS ON SUCH INSURANCE
HAVE BEEN PAID BY THE EMPLOYER AND THE INSURANCE HAS BEEN IN EFFECT
(WITH RESPECT TO ANY BENEFIT) FOR MORE THAN 60 MONTHS. THE CORPORATION
IS AUTHORIZED TO PRESCRIBE CONDITIONS UNDER WHICH NO PAYMENT WILL BE
MADE TO WHETHER PREMIUMS FOR SUCH INSURANCE HAVE BEEN PAID.
(E) NOTHING IN THIS SECTION PRECLUDES THE PURCHASE BY THE EMPLOYER OF
INSURANCE FROM ANY OTHER PERSON, OR LIMITS THE CIRCUMSTANCES UNDER WHICH
THAT INSURANCE IS PAYABLE, OR IN ANY WAY LIMITS THE TERMS AND CONDITIONS
OF SUCH INSURANCE, EXCEPT THAT THE CORPORATION MAY PRESCRIBE AS A
CONDITION PRECEDENT TO THE PURCHASE OF SUCH INSURANCE THE PAYMENT OF A
REINSURANCE PREMIUM OR OTHER REASONABLE FEE UNDER THIS SECTION
DETERMINED BY THE CORPORATION TO BE NECESSARY TO ASSURE THE LIQUIDITY
AND ADEQUACY OF ANY FUND OR FUNDS ESTABLISHED TO CARRY OUT THE
PROVISIONS OF THIS SECTION.
(F) IN CARRYING OUT ITS DUTIES UNDER SUBSECTION (A) TO DEVELOP
ARRANGEMENTS WITH PRIVATE INSURERS THE CORPORATION SHALL CONSIDER AS AN
ALTERNATIVE OR AS A SUPPLEMENT TO PRIVATE INSURANCE THE FEASIBILITY OF
USING PRIVATE INDUSTRY GUARANTEES, INDEMNITIES, OR LETTERS OF CREDITS.
SEC. 4041. (A) BEFORE THE EFFECTIVE DATE OF THE TERMINATION OF A
PLAN, THE PLAN ADMINISTRATOR SHALL FILE A NOTICE WITH THE CORPORATION
THAT THE PLAN IS TO BE TERMINATED ON A PROPOSED DATE (WHICH MAY NOT BE
EARLIER THAN 10 DAYS AFTER THE FILING OF THE NOTICE), AND FOR A PERIOD
OF 90 DAYS AFTER THE PROPSED TERMINATION DATE THE PLAN ADMINISTRATOR
SHALL PAY NO AMOUNT PURSUANT TO THE TERMINATION PROCEDURE OF THE PLAN
UNLESS, BEFORE THE EXPIRATION OF SUCH PERIOD, HE RECEIVES A NOTICE, THE
PLAN ADMINISTRATOR MAY PROCEED WITH THE TERMINATION OF THE PLAN IN A
MANNER CONSISTENT WITH THIS SUBTITLE.
(B) IF THE CORPORATION DETERMINES THAT, AFTER APPLICATION OF SECTION
4044, THE ASSETS HELD UNDER THE PLAN ARE SUFFICIENT TO DISCHARGE WHEN
DUE ALL OBLIGATIONS OF THE PLAN WITH RESPECT TO BASIC BENEFITS, IT SHALL
NOTIFY THE PLAN ADMINISTRATOROF SUCH DETERMINATION AS SOON AS
PRACTICABLE.
(C) IF, WITHIN SUCH 90-DAY PERIOD, THE CORPORATION FINDS THAT IT IS
UNABLE TO DETERMINE THAT, IF THE ASSETS OF THE PLAN ARE ALLOCATED IN
ACCORDANCE WITH THE PROVISIONS OF SECTION 4044, //POST, P. 1025.// THE
ASSETS HELD UNDER THE PLAN ARE SUFFICIENT TO DISCHARGE WHEN DUE ALL
OBLIGATION OF THE PLAN WITH RESPECT TO BASIC BENEFITS, IT SHALL NOTIFY
THE PLAN ADMINISTRATOR WITH SUCH 90-DAY PERIOD OF THAT FINDING. WHEN
THE CORPORATON ISSUES A NOTICE UNDER THEIS SUBSECTION, IT SHALL COMMENCE
PROCEEDINGS IN ACCORDANCE WITH THE PROVISIONS OF SECTION 4042. //POST,
P. 1021.// UPON RECEIVING A NOTICE UNDER THIS SUBSECTION, THE PLAN
ADMINISTRATOR SHALL REFRAIN FROM TAKING ANY ACTION UNDER THE PROPSED
TERMINATION.
(D) THE CORPORATION AND THE PLAN ADMINISTRATOR MAY AGREE TO EXTEND
THE 90-DAY PERIOD PROVIDED BY THIS SECTION BY A WRITTEN AGREEMENT SIGNED
BY THE CORPORATION AND THE PLAN ADMINISTRATOR BEFORE THE EXPIRATION OF
THE 90-DAY PERIOD, OR THE CORPORATION MAY APPLY TO AN APPROPRIATE COURT
(AS DEFINED IN SECTION 4042(G)) //POST, P. 1023.// FOR AN ORDER
EXTENDING THE 90-DAY PERIOD PROVIDED BY THIS SECTION. THE 90-DAY PERIOD
SHALL BE EXTENDED AS PROVIDED IN THE AGREEMENT OR IN ANY COURT ORDER
OBTAINED BY THE CORPORATION. THE 90-DAY PERIOD MAY BE FURTHER EXTENDED
BY SUBSEQUENT WRITTEN AGREEMENTS SIGNED BY THE CORPORATION AND THE PLAN
ADMINISTRATOR MADE BEFORE THE EXPIRATION OF A PREVIOUSLY AGREED UPON
EXTENSION OF THE 90-DAY PERIOD, OR BY SUBSEQUENT ORDER OF THE COURT.
ANY EXTENSION MAY BE MADE UPON SUCH TERMS AND CONDITIONS (INCLUDING THE
PAYMENT OF BENEFITS) AS ARE AGREED UPON BY THE CORPORATION AND THE PLAN
ADMINISTRATOR OR AS SPECIFIED IN THE COURT ORDER.
(E) IF, AFTER THE PLAN ADMINISTRATOR HAS BEGUN TO TERMINATE THE PLAN
AS AUTHORIZED BY THIS SECTION, THE CORPORATION OR THE PLAN ADMINISTRATOR
FINDS THAT THE PLAN IS UNABLE, OR WILL BE UNABLE, TO PAY BASIC BENEFITS
WHEN DUE, THE PLAN ADMINISTRATOR SHALL NOTIFY THE CORPORATION OF SUCH
FINDING AS SOON AS PRACTICABLE THEREAFTER. IF THE CORPORATION MAKES
SUCH A FINDING OR CONCURS WITH THE FINDING OF THE PLAN ADMINISTRATOR, IT
SHALL INSTITUTE APPROPRIATE PROCEEDINGS UNDER SECTION 4042. THE PLAN
ADMINISTRATOR TERMINATING A PLAN SHALL FURNISH SUCH REPORTS TO THE
CORPORATION AS IT MAY REQUIRE FOR PURPOSES OF ITS DUTIES UNDER THIS
SECTION.
(F) FOR PURPOSES OF SUBSECTION (A), A PLAN WITH RESPECT TO WHICH
BASIC BENEFITS ARE GUARANTEED SHALL BE TREATED AS TERMINATED UPON THE
ADOPTION OF AN AMENDMENT TO SUCH PLAN, IF, AFTER GIVING EFFECT TO SUCH
AMENDMENT, THE PLAN IS A PLAN DESCRIBED IN SECTION 4021(B)(1). //ANTE,
P. 1015.//
(G) NOTWITHSTANDING ANY OTHER PROVISION OF THIS TITLE, A PLAN
ADMINISTRATOR OR THE CORPORATION MAY PETITION THE APPROPRIATE COURT FOR
THE APPOINTMENT OF A TRUSTEE IN ACCORDANCE WITH THE PROVISIONS OF
SECTION 4042 IF THE INTERESTS OF THE PARTICIPANTS AND BENEFICIARIES
WOULD BE BETTER SERVED BY THE APPOINTMENT OF THE TRUSTEE.
SEC. 4042. (A) THE CORPORATION MAY INSTITUTE PROCEEDINGS UNDER THIS
SECTION TO TERMINATE A PLAN WHENEVER IT DETERMINES THAT--'
(1) THE PLAN HAS NOT MET THE MINIMUM FUNDING STANDARD REQUIRED
UNDER SECTION 412 OF THE INTERNAL REVENUE CODE OF 1954, //ANTE, P.
914.// OR HAS BEEN NOTIFIED BY THE SECRETARY OF THE TREASURY THAT
A NOTICE OF DEFICIENCY UNDER SECTION 6212 OF SUCH CODE //25 USC
6212.// HAS BEEN MAILED WITH RESPECT TO THE TAX IMPOSED UNDER
SECTION 4971(A) OF SUCH CODE, //ANTE, P. 920.//
(2) THE PLAN IS UNABLE TO PAY BENEFITS WHEN DUE,
(3) THE REPORTABLE EVENT DESCRIBED IN SECTION 4043(B)(7)
//POST, P. 1024.// HAS OCCURED, OR
(4) THE POSSIBLE LONG-RUN LOSS OF THE CORPORATION WITH RESPECT
TO THE PLAN MAY BE REASONABLY BE EXPECTED TO INCREASE UNREASONABLY
IF THE PLAN IS NOT TERMINATED.
THE CORPORATION MAY PRESCRIBE A SIMPLIFIED PROCEDURE TO FOLLOW IN
TERMINATING SMALL PLANS AS LONG AS THAT PROCEDURE INCLUDES SUBSTANTIAL
SAFEGUARDS FOR THE RIGHTS OF THE PARTICIPANTS AND BENEFICIARIES UNDER
THE PLANS, AND FOR THE EMPLOYERS WHO MAINTAIN SUCH PLANS (INCLUDING THE
REQUIREMENT FOR A COURT DECREE UNDER SUBSECTION (C)). THE CORPORATION
IS AUTHORIZED TO POOL THE ASSETS OF SUCH SMALL PLANS FOR PURPOSES OF
ADMINISTRATION AND SUCH OTHER PURPOSES, NOT INCONSISTENT WITH ITS DUTIES
TO THE PLAN PARTICIPANTS AND THE EMPLOYER MAINTAINING THE PLAN UNDER
THIS TITLE, AS IT DETERMINES TO BE REQUIRED FOR THE EFFICIENT
ADMINISTRATION OF THIS TITLE.
(B) WHENEVER THE CORPORATION MAKES A DETERMINATION UNDER SUBSECTION
(A) WITH RESPECT TO A PLAN IT MAY, UPON NOTICE TO THE PLAN, APPLY TO THE
APPROPRIATE UNITED STATES DISTRICT COURT FOR THE APPOINTMENT OF A
TRUSTEE TO ADMINISTER THE PLAN WITH RESPECT TO WHICH THE DETERMINATION
IS MADE PENDING THE ISSUANCE OF A DECREE INDER SUBSECTION (C) ORDERING
THE TERMINATION OF THE PLAN. IF WITHIN 3 BUSINESS DAYS AFTER THE FILING
OF AN APPLICATION UNDER THIS SUBSECTION, OR SUCH OTHER PERIOD AS THE
COURT MAY ORDER, THE ADMINISTRATOR OF THE PLAN CONSENTS TO THE
APPOINTMENT OF A TRUSTEE, OR FAILS TO SHOW WHY A TRUSTEE SHOULD NOT BE
APPOINTED, THE COURT MAY GRANT THE APPLICATION AND APPOINT A TRUSTEE TO
ADMINISTER THE PLAN IN ACCORDANCE WITH ITS TERMS UNTIL THE CORPORATION
DETERMINES THAT THE PLAN SHOULD BE TERMINATED OR THAT TERMINATION IS
UNNECESSARY. THE CORPORATION MAY REQUEST THAT IT BE APPOINTED AS
TRUSTEE OF A PLAN IN ANY CASE.
(C) IF THE CORPORATION HAS ISSUED A NOTICE UNDER THIS SECTION TO A
PLAN ADMINISTRATOR AND (WHETHER OR NOT A TRUSTEE HAS BEEN APPOINTED
UNDER SUBSECTION (B)) HAS DETERMINED THAT THE PLAN SHOULD BE TERMINATED,
IT MAY, UPON NOTICE TO THE PLAN ADMINISTRATOR, APPLY TO THE APPROPRIATE
UNITED STATES DISTRICT COURT FOR A DECREE ADJUDICATING THAT THE PLAN
MUST BE TERMINATED IN ORDER TO PROTECT THE INTERESTS OF THE PARTICIPANTS
AND TO AVIOD ANY FURTHER DETERIORATION OF THE FINANCIAL CONDITION OF THE
PLAN OR ANY FURHTER INCREASE IN THE LIABILITY OF THE FUND. IF THE
TRUSTEE APPOINTED UNDER SUBSECTION (B) DISAGREES WITH THE DETERMINATION
OF THE CORPORATION UNDER THE PRECEDING SENTENCE HE MAY INTERVENE IN THE
PROCEEDING RELATING TO THE APPLICATION FOR THE DECREE, OR AMKE
APPLICATION FOR DECREE HIMSELF. UPON GRANTING A DECREE FOR WHICH THE
CORPORATION OR TRUSTEE HAS APPLIED UNDER THIS SUBSECTION THE COURT SHALL
AUTHORIZE THE TRUSTEE APPOINTED UNDER SUBSECTION (B) (OR APPOINT A
TRUSTEE IF ONE HAS NOT BEEN APPOINTED UNDER SUCH SUBSECTION AND
AUTHORIZE HIM) TO TERMINATE THE PLAN IN ACCORDANCE WITH THE PROVISIONS
OF THIS SUBTITLE. IF THE CORPORATION AND THE PLAN ADMINISTRATOR AGREE
THAT A PLAN SHOULD BE TERMINATED AND AGREE TO THE APPOINTMENT OF A
TRUSTEE WITHOUT PROCEEDING IN ACCORDANCE WITH THE REQUIREMENTS OF THE
SUBSECTION (OTHER THAN THIS SENTENCE) THE TRUSTEE SHALL HAVE THE POWER
DESCRIBED IN SUBSECTION (D)(1) AND, IN ADDITION TO ANY OTHER DUTIES
IMPOSED ON THE TRUSTEE UNDER LAW OR BY AGREEMENT BETWEEN THE CORPORATION
AND THE PLAN ADMINISTRATOR, THE TRUSTEE IS SUBJECT TO THE DUTIES
DESCRIBED IN SUBSECTION (D)(3). WHENEVER A TRUSTEE APPOINTED UNDER THIS
TITLE IS OPERATING A PLAN WITH DISCRETION AS TO THE DATE UPON WHICH
FINAL DISTRIBUTION OF THE ASSETS IS TO BE COMMENCED, THE TRUSTEE SHALL
NOTIFY THE CORPORATION AT LEAST 10 DAYS BEFORE THE DATE ON WHICH HE
PROPSES TO COMMERCE SUCH DISTRIBUTION.
(D)(1)(A) A TRUSTEE APPOINTED UNDER SUBSECTION (B) SHALL HAVE THE
POWER--'
(I) TO DO ANY ACT AUTHORIZED BY THE PLAN OR THIS TITLE TO BE
DONE BY THE PLAN ADMINISTRATOR OR ANY TRUSTEE OF THE PLAN;
(II) TO REQUIRE THE TRANSFER OF ALL (OR ANY PART) OF THE ASSETS
AND RECORDS OF THE PLAN TO HIMSELF AS TRUSTEE;
(III) TO INVEST ANY ASSETS OF THE PLAN WHICH HE HOLDS IN
ACCORDANCE WITH THE PROVISIONS OF THE PLAN, REGULATIONS OF THE
CORPORATION, AND APPLICALBE RULES OF LAW;
(IV) TO LIMIT PAYMENT OF BENEFITS UNDER THE PLAN TO BASIC
BENEFITS OR TO CONTINUE PAYMENT OF SOME OR ALL OF THE BENEFITS
WHICH WERE BEING PAID PRIOR TO HIS APPOINTMENT; AND
(V) TO DO SUCH OTHER ACTS AS HE DEEMS NECESSARY TO CONTINUE
OPERATION OF THE PLAN WITHOUT INCREASING THE POTENTIAL LIABILITY
OF THE CORPORATIO, IF SUCH ACTS MAY BE DONE UNDER THE PROVISIONS
OF THE PLAN.
IF THE COURT TO WHICH APPLICATION IS MADE UNDER SUBSECTION (C) DISMISSES
THE APPLICATION WITH PREJUDICE, OR IF THE CORPORATION FAILS TO APPLY FOR
A DECREE UNDER SUBSECTION (C) WITHIN 30 DAYS AFTER THE DATE ON WHICH THE
TRUSTEE IS APPOINTED UNDER SUBSECTION (B), THE TRUSTEE SHALL TRANSFER
ALL ASSETS AND RECORDS OF THE PLAN HELD BY HIM TO THE PLAN ADMINISTRATOR
WITHIN 3 BUSINESS DAYS AFTER SUCH DISMISSAL OR THE EXPIRATION OF SUCH
30-DAY PERIOD, AND SHALL NOT BE LIABLE TO THE PLAN OR ANY OTHER PERSON
FOR HIS ACTS AS TRUSTEE EXCEPT FOR WILLFUL MISCONDICT, OR FOR CONDUCT IN
VIOLATION OF THE PROVISIONS OF PART 4 OF SUBTITLE B OF TITLE I OF THIS
ACT //ANTE, P. 874.// (EXCEPT AS PROVIDED IN SUBSECTION (D)(1)(A) (V)).
THE 30-DAY PERIOD REFERRED TO IN THIS SUBPARAGRAPH MAY BE EXTENDED AS
PROVIDED BY AGREEMENT BETWEEN THE PLAN ADMINISTRATOR AND THE CORPORATION
OR BY COURT ORDER OBTAINED BY THE CORPORATION.
(B) IF THE COURT TO WHICH AN APPLICATION IS MADE UNDER SUBSECTION (C)
ISSUES THE DECREE REQUESTED IN SUCH APPLICATION, IN ADDITION TO THE
POWERS DESCRIBED IN SUBPARAGRAPH (A), THE TRUSTEE SHALL HAVE THE
POWER--'
(I) TO PAY BENEFITS UNDER THE PLAN IN ACCORDANCE WITH THE
ALLOCATION REQUIREMENTS OF SECTION 4044; //POST, P. 1025.//
(II) TO COLLECT FOR THE PLAN ANY AMOUNTS DUE THE PLAN;
(III) TO RECEIVE ANY PAYMENT MADE BY THE CORPORATION TO THE
PLAN UNDER THIS TITLE;
(IV) TO COMMENCE, PROSECUTE, OR DEFEND ON BEHALF OF THE PLAN
ANY SUIT OR PROCEEDING INVOLVING THE PLAN, EXCEPT TO THE EXTENT
THAT THE CORPORATION IS AN ADVERSE PARTY IN A SUIT OR PROCEEDING;
(V) TO ISSUE, PUBLISH, OR FILE SUCH NOTICES, STATEMENTS, AND
REPORTS AS MAY BE REQUIRED BY THE CORPORATION OR ANY ORDER OF THE
COURT;
(VI) TO LIQUIDATE THE PLAN ASSETS;
(VII) TO RECOVER PAYMENTS UNDER SECTION 4045(A), //POST, P.
1027.// AND
(VIII) TO DO SUCH OTHER ACTS AS MAY BE NECESSARY TO COMPLY WITH
THIS TITLE OR ANY ORDER OF THE COURT AND TO PROTECT THE INTERESTS
OF PLAN PARTICIPANTS AND BENEFICIARIES.
(2) AS SOON AS PRACTICABLE AFTER HIS APPOINTMENT, THE TRUSTEE SHALL
GIVE NOTICE TO INTERESTED PARTIES OF THE INSTITUTION OF PROCEEDINGS
UNDER THIS TITLE TO DETERMINE WHETHER THE PLAN ISHOULD BE TERMINATED OR
TO TERMINATE THE PLAN, WHICHEVER IS APPLICABLE. FOR PURPOSES OF THIS
PARAGRAPH, THE TERM "INTERESTED PARTY" MEANS--'
(A) THE PLAN ADMINISTRATOR,
(B) EACH PARTICIPANT IN THE PLAN AND EACH BENEFICIARY OF A
DECEASED PARTICIPANT, AND
(C) EACH EMPLOYER WHO MAY BESUBJECT TO LIABILITY UNDER SECTION
4062, 4063, OR 4064. //POST, PP. 1029 - 1031.//
(3) EXCEPT TO THE EXTENT INCONSISTENT WITH THE PROVISIONS OF THIS
ACT, OR AS MAY BE OTHERWISE ORDERED BY THE COURT, A TRUSTEE APPOINTED
UNDER THIS SECTION SHALL BE SUBJECT TO THE SAME DUTIES AS A TRUSTEE
APPOINTED UNDER SECTION 47 OF THE BANKRUPTCY ACT, //11 USC 75.// AND
SHALL BE, WITH RESPECT TO THE PLAN, A FIDUCIARY WITHIN THE MEANING OF
PARAGRAPH (21) OF SECTION 3 OF THIS ACT //ANTE, P. 833.// AND UNDER
SECTION 4975(E) OF THE INTERNAL REVENUE CODE OF 1954 //ANTE, P. 971.//
(EXCEPT TO THE EXTENT THAT THE PROVISIONS OF THIS TITLE ARE INCONSISTENT
WITH THE REQUIREMENTS APPLICABLE UNDER PART 4 OF SUBTITLE B OF TITLE I
OF THIS ACT AND OF SUCH SECTION 4975). //ANTE, P. 874.//
(E) AN APPLICATION BY THE CORPORATION UNDER THIS SECTION MAY BE FILED
NOTWITHSTANDING THE PENDENCY IN THE SAME OR ANY OTHER COURT OF ANY
BANKRUPTCY, MORTGAGE FORECLOSURE, OR EQUITY RECEVIERSHIP PROCEEDING, OR
ANY PROCEEDING TO REORGANIZE, CONSERVE, OR LIQUIDATE SUCH PLAN OR ITS
PROPERTY, OR ANY PROCEEDING TO ENFORCE A LIEN AGAINST PROPERTY OF THE
PLAN.
(F) UPON FILING OF AN APPLICATION FOR THE APPOINTMENT OF A TRUSTEE OR
THE ISSUANCE OF A DECREE UNDER THIS SECTIOM, THE COURT TO WHICH AN
APPLICATION IS MADE SHALL HAVE EXCLUSIVE JURISDICTION OF THE PLAN
INVOLVED AND ITS PROPERTY WHEREVER LOCATED WITH THE POWERS, TO THE
EXTENT CONSISTENT WITH THE PURPOSES OF THIS SECTION, OF A COURT OF
BANKRUPTCY AND OF A COURT IN A PROCEEDING UNDER CHAPTER X OF THE
BANKRUPTCY ACT. //11 USC 501.// PENDING AN ADJUDICATION UNDER
SUBSECTION (C) SUCH COURT SHALL STAY, AND UPON APPOINTMENT BY IT OF A
TRUSTEE, AS PROVIDED IN THIS SECTION SUCH COURT SHALL CONTINUE THE STAY
OF, ANY PENDING BANKRUPTCY, MARTGAGE FORECLOSURE, EQUITY RECEIVERSHIP,
OR OTHER PROCEEDING TO REORGANIZE, CONSERVE, OR LIQUIDATE THE PLAN OR
ITS PROPERTY AND ANY OTHER SUIT AGAINST ANY RECEIVER, CONSERVATOR, OR
TRUSTEE OF THE PLAN OR ITS PROPERTY. PENDING SUCH ADJUDICATION AND UPON
THE APPOINTMENT BY IT OF SUCH TRUSTEE, THE COURT MAY STAY ANY PROCEEDING
TO ENFORCE A LIEN AGAINST PROPERTY OF THE PLAN OR ANY OTHER SUIT AGAINST
THE PLAN.
(G) AN ACTION UNDER THIS SUBSECTION MAY BE BROUGHT IN THE JUDICIAL
DISTRICT WHERE THE PLAN ADMINISTRATOR RESIDES OR DOES BUSINESS OR WHERE
ANY ASSET OF THE PLAN IS SITUATED. A DISTRICT COURT IN WHICH SUCH
ACTION IS BROUGHT MAY ISSUE PROCESS WITH RESPECT TO SUCH ACTION IN ANY
OTHER JUDICIAL DISTRICT.
(H)(1) THE AMOUNT OF COMPENSATION PAID TO EACH TRUSTEE APPOINTED
UNDER THE PROVISIONS OF THIS TITLE SHALL REQUIRE THE PRIOR APPROVAL OF
THE CORPORATION, AND, IN THE CASE OF A TRUSTEE APPOINTED BY A COURT, THE
CONSENT OF THAT OCURT.
(2) TRUSTEES SHALL APPOINT, RETAIN, AND COMPENSATE ACCOUNTANTS,
ACTUARIES, AND OTHER PROFESSIOANL SERVICE PERSONNEL IN ACCORDANCE WITH
REGULATIONS PRESCRIBED BY THE CORPORATION.
SEC. 4043. (A) WITHIN 30 DAYS AFTER THE PLAN ADMINISTRATOR KNOWS OR
HAS REASON TO KNOW THAT A REPORTABLE EVENT DESCRIBED IN SUBSECTION (B)
HAS OCCURED, HE SHALL NOTIFY THE CORPORATION THAT SUCH EVENT HAS
OCCURED. THE CORPORATION IS AUTHORIZED TO WAIVE THE REQUIREMENT OF THE
PRECEDING SENTENCE WITH RESPECT TO ANY OR ALL REPORTABLE EVENTS WITH
RESPECT TO ANY PLAN, AND TO REQUIRE THE NOTIFICATION TO BE MADE BY
INCLUDING THE EVENT IN THE ANNUAL REPORT MADE BY THE PLAN. WHENEVER AN
EMPLOYER MAKING CONTRIBUTIONS UNDER A PLAN TO WHICH SECTION 4021 //ANTE,
P. 1014.// APPLIES KNOWS OR HAS REASON TO KNOW THAT A REPORTABLE EVENT
HAS OCCURED HE SHALL NOTIFY THE PLAN ADMINISTRATOR IMMEDIATELY.
(B) FOR PURPOSES OF THIS SECTION A REPORTABLE EVENT OCCURS--,
(1) WHEN THE SECRETARY OF THE TREASURY ISSUES NOTICE THAT A
PLAN HAS CEASED TO BE A PLAN DESCRIBED IN SECTION 4021(A)(2), OR
WHEN THE SECRETARY OF LABOR DETERMINES THE PLAN IS NOT IN
COMPLIANCE WITH TITLE I OF THIS ACT; //ANTE, P. 832.//
(2) WHEN AN AMENDMENT OF THE PLAN IS ADOPTED IF, UNDER THE
AMENDMENT, THE BENEFIT PAYABLE WITH RESPECT TO ANY PARTICIPANT MAY
BE DECREASED;
(3) WHEN THE NUMBER OF ACTIVE PARTICIPANTS IS LESS THAN 80
PERCENT OF THE NUMBER OF SUCH PARTICIPANTS AT THE BEGINNING OF THE
PLAN YEAR, OR IS LESS THAN 75 PERCENT OF THE NUMBER OF SUCH
PARTICIPANTS AT THE BEGINNNING OF THE PREVIOUS PLAN YEAR;
(4) WHEN THE SECRETARY OF THE TREASURY DETERMINES THAT THERE
HAS BEEN A TERMINATION OR PARTIAL TERMINATION OF THE PLAN WITHIN
THE MEANING SECTION 411(D)(3) OF THE INTERNAL REVENUE CODE OF
1954, //ANTE, P. 912.// BUT THE OCCURRENCE OF SUCH A TERMINATION
OR PARTIAL TERMINATION DOES NOT, BY ITSELF, CONSTITUTE OR REQUIRE
A TERMINATION OF A PLAN UNDER THIS TITLE;
(5) WHEN THE PLAN FAILS TOMEET THE MINIMUM FUNDING STANDARDS
UNDER SECTION 412 OF SUCH CODE //ANTE, P. 914.// (WITHOUT REGARD
TO WHETHER THE PLAN IS A PLAN DESCRIBED IN SECTION 4021(A)(2) OF
THIS ACT) //ANTE, P. 1014.// OR UNDER SECTION 302 OF THIS ACT;
//ANTE, P. 869.//
(6) WHEN THE PLAN IS UNABLE TO PAY BENEFITS THEREUNDER WHEN
DUE;
(7) WHEN THERE IS A DISTRIBUTION UNDER THE PLAN TO A
PARTICIPANT WHO IS A SUBSTANTIAL OWNER AS DEFINED IN SECTION
4021(B)(6) //ANTE, P. 1016.// IF--'
(A) SUCH DISTRIBUTION HAS A VALUE OF $10,000 OR MORE;
(B) SUCH DISTRIBUTION IS NOT MADE BY REASON OF THE DEATH OF THE
PARTICIPANT; AND
(C) IMMEDIATELY AFTER THE DISTRIBUTION, THE PLAN HAS
NONFORFEITABLE BENEFITS WHICH ARE NOT FUNDED;
(8) WHEN A PLAN MERGES, CONSOLIDATES, OR TRANSFERS ITS ASSETS
UNDER SECTION 208 OF THIS ACT, //ANTE, P. 865.// OR WHEN AN
ALTERNATIVE METHOD OF COMPLIANCE IS PRESCRIBED BY THE SECRETARY OF
LABOR UNDER SECTION 110 OF THIS ACT; //ANTE, P. 851.// OR
(9) WHEN ANY OTHER EVENT OCCURS WHICH THE CORPORATION
DETERMINES MAY BE INDICATIVE OF A NEED TO TERMINATE THE PLAN.
FOR PURPOSES OF PARAGRAPH (M), ALL DISTRIBUTIONS TO A PARTICIPANT WITHIN
ANY 24-MONTH PERIOD ARE TREATED AS A SINGLE DISTRIBUTION.
(C) THE SECRETARY OF THE TREASURY SHALL NOTIFY THE CORPORATION--'
(1) WHENEVER A REPORTABLE EVENT DESCRIBED IN PARAGRAPH (1),
(4), OR (5) OF SUBSECTION (B) OCCURS, OR
(2) WHENEVER ANY OTHER EVENT OCCURS WHICH THE SECRETARY OF THE
TREASURY BELIEVES INDICATES THAT THE PLAN MAY NOT BE SOUND.
THE SECRETARY OF LABOR SHALL NOTIFY THE CORPORATION--'
(1) HWNEVER A REPORTABLE EVENT DESCRIBED IN PARAGRAPH (1), (5),
OR (8) OF SUBSECTION (B) OCCURS, OR
(2) WHENEVER ANY OTHER EVENT OCCURS WHCIH THE SECRETARY OF
LABOR BELIEVES INDICATES THAT THE PLAN MAY NOT BE SOUND.
SEC. 4044. (A) IN THE CASE OF THE TERMINATION OF A DEFINED BENEFIT
PLAN, THE PLAN ADMINISTRATOR SHALL ALLOCATE THE ASSETS OF THE PLAN
(AVAILABLE TO PROVIDE BENEFITS) AMONG THE PARTICIPANTS AND BENEFICIARIES
OF THE PLAN IN THE FOLLOWING ORDER:
(1) FIRST, TO THAT PORTION OF EACH INDIVIDUAL'S ACCURED BENEFIT
WHICH IS DERIVED FROM THE PARTICIPANT'S CONTRIBUTIONS TO THE PLAN
WHICH WERE NOT MANDATORY CONTRIBUTION.
(2) SECOND, TO THAT PORTION OF EACH INDIVIDUAL'S ACCURED
BENEFIT WHICH IS DERIVED FROM THE PARTICIPANT'S MANDATORY
CONTRIBUTIONS.
(3) THIRD, IN THE CASE OF BENEFITS PAYABLE AS AN ANNUITY--'
(A) IN THE CASE OF THE BENEFIT OF A PARTICIPANT OR BENEFICIARY
WHICH WAS IN PAY STATUS AS OF THE BEGINNING OF THE 3-YEAR PERIOD
ENDING ON THE TERMINATION DATE OF THE PLAN, TO EACH SUCH BENEFIT,
BASED ON THE PROVISIONS OF THE PLAN (AS IN EFFECT DURING THE
5-YEAR PERIOD ENDING ON SUCH DATE) UNDER WHICH SUCH BENEFIT WOULD
BE THE LEAST,
(B) IN THE CASE OF A PARTICIPANT'S OR BENEFICIARY'S BENEFIT
(OTHER THAN A BENEFIT DESCRIBED IN SUBPARAGRAPH (A)) WHICH WOULD
HAVE BEEN IN PAY STATUS AS OF THE BEGINNING OF SUCH 3-YEAR PERIOD
IF THE PARTICIPANT HAD RETIRED PRIOR TO THE BEGINNING OF THE
3-YEAR PERIOD AND IF HIS BENEFITS HAD COMMENCED (IN THE NORMAL
FORM OF ANNUITY UNDER THE PLAN) AS OF THE BEGINNING OF SUCH
PERIOD, TO EACH SUCH BENEFIT BASED ON THE PROVISIONS OF THE PLAN
(AS IN EFFECT DURING THE 5-YEAR PERIOD ENDING ON SUCH DATE) UNDER
WHICH SUCH BENEFIT WOULD BE THE LEAST. FOR PURPOSES OF
SUBPARAGRAPH (A), THE LOWEST BENEFIT IN PAY STATUS DURING A 3-YEAR
PERIOD SHALL BE CONSIDERED THE BENEFIT IN PAY STATUS FOR SUCH
PERIOD.
(4) FOURTH--'
(A) TO ALL OTHER BENEFITS (IF ANY) OF INDIVIDUALS UNDER THE
PLAN GUARANTEED UNDER THIS TITLE (DETERMINED WITHOUT REGARD TO
SECTION 4022(B)(5)); //ANTE, P. 1016.// AND
(B) TO THE ADDITIONAL BENEFITS (IF ANY) WHICH WOULD BE
DETERMINED UNDER SUBPARAGRAPH (A) IF SECTION 4022(B)(6) DID NOT
APPLY. FOR PURPOSES OF THIS PARAGRAPH, SECTION 4021 //ANTE, P.
1014.// SHALL BE APPLIED WITHOUT REGARD TO SUBSECTION (C) THREOF.
(5) FIFTH, TO ALL OTHER NONFORFEITABLE BENEFITS UNDER THE PLAN.
(6) SIXTH, TO ALL OTHER BENEFITS UNDER THE PLAN.
(B) FOR PURPOSE OF SUBSECTION (A)--'
(1) THE AMOUNT ALLOCATED UNDER ANY PARAGRAPH OF SUBSECTION (A)
WITH RESPECT TO ANY BENEFIT SHALL BE PROPERLY ADJUSTED FOR ANY
ALLOCATION OF ASSETS WITH RESPECT TO THAT BENEFIT UNDER A PRIOR
PARAGRAPH OF SUBSECTION (A).
(2) IF THE ASSETS AVAILABLE FOR ALLOCATION UNDER ANY PARAGRAPH
OF SUBSECTION (A) (OTHER THAN PARAGRAPHS (5) AND (6) ARE
INSUFFICIENT TO SATISAFY IN FULL THE BENEFITS OF ALL INDIVIDUALS
WHICH ARE DESCRIBED IN THAT PARAGRAPH, THE ASSETS SHALL BE
ALLOCATED PRO RATA AMONG SUCH INDIVIDUALS ON THE BASIS OF THE
PRESENT VALUE (AS OF THE TERMINATION DATE) OF THEIR RESPECTIVE
BENEFITS DESCRIBED IN THAT PARAGRAPH.
(3) THIS PARAGRAPH APPLIES IF THE ASSETS AVAILABLE FOR
ALLOCATION UNDER PARAGRAPH (5) OF SUBSECTION (A) ARE NOT
SUFFICIENT TO SATISFY IN FULL THE BENEFITS OF INDIVIDUALS
DESCRIBED IN THAT PARAGRAPH.
(A) IF THIS PARAGRAPH APPLIES, EXCEPT AS PROVIDED IN
SUBPARAGRAPH (B), THE ASSETS SHALL BE ALLOCATED TO THE BENEFITS OF
INDIVIDUALS DESCRIBED IN SUCH PARAGRAPH (5) ON THE BASIS OF THE
BENEFITS OF INDIVIDUALS WHICH WOULD HAVE BEEN DESCRIBED IN SUCH
PARAGRAPHS (5) UNDER THE PLAN AS IN EFFECT AT THE BEGINNING OF THE
5-YEAR PERIOD ENDING ON THE DATE OF PLAN TERMINATION
(B) IF THE ASSETS AVAILABLE FOR ALLOCATION UNDER SUBPARAGRAPH
(A) ARE SUFFICIENT TO SATISFY IN FULL THE BENEFITS DESCRIBED IN
SUCH PARAGRAPH (WITHOUT REGARD TO THE SUBPARAGRAPH), THEN FOR
PURPOSES OF SUBPARAGRAPH (A), BENEFITS OF INDIVIDUALS DESCRIBED IN
SUCH SUBPARAGRAPH SHALL BE DETERMINED ON THE BASIS OF THE PLAN AS
AMENDED BY THE MOST RECENT PLAN AMENDMENT EFFECTIVE DURING SUCH
5-YEAR PERIOD UNDER WHICH THE ASSETS AVAILABLE FOR ALLOCATION ARE
SUFFICIENT TO SATISFY IN FULL THE BENEFITS OF INDIVIDUALS
DESCRIBED IN SUBPARAGRAPH (A) AND ANY ASSETS REMAINING TO BE
ALLOCATED UNDER SUCH SUBPARAGRAPH SHALL BE ALLOCATED UNDER
SUBPARAGRAPH (A) ON THE BASIS OF THE PLAN AS AMENDED BY THE NEXT
SUCCEEDING PLAN AMENDMENT EFFECTIVE DURING SUCH PERIOD.
(4) IF THE SECRETARY OF THE TREASURY DETERMINES THAT THE
ALLOCATION MADE PURSUANT TO THIS SECTION (WITHOUT REGARD TO THIS
PARAGRAPH) RESULTS IN DISCRIMINATION PROHIBITED BY SECTION 401(
A)(4) OF THE INTERNAL REVENUE CODE OF 1954 //ANTE, P. 938.// THEN,
IF REQUIRED TO PREVENT THE DISQUALIFICATION OF THE PLAN (OR ANY
TRUST UNDER THE PLAN) UNDER SECTION 401(A), 403(A), OR 405(A) OF
SUCH CODE //26 USC 403, 405.// THE ASSETS ALLOCATED UNDER
SUBSECTIONS (A)(4)(B), (A)(5), AND (A)(6) SHALL BE REALLOCATED TO
THE EXTENT NECESSARY TO AVOID SUCH DISCRIMINATION.
(5) THE TERM "MANDATORY CONTRIBUTIONS" MEANS AMOUNTS
CONTRIBUTED TO THE PLAN BY A PARTICIPANT WHICH ARE REQUIRED AS A
CONDITION OF EMPLOYMENT, AS A CONDITION OF PARTICIPATION IN SUCH
PLAN, OR AS A CONDITION OF OBTAINING BENEFITS UNDER THE PLAN
ATTRIBUTABLE TO EMPLOYER CONDITION. FOR THIS PURPOSE, THE TOTAL
AMOUNT OF MANDATORY CONTRIBUTIONS OF A PARTICIPANT IS THE AMOUNT
OF SUCH CONTRIBUTIONS REDUCED (BUT NOT BELOW ZERO) BY THE SUM OF
THE AMOUNTS PAID OR DISTRIBUTED TO HIM UNDER THE PLAN BEFORE ITS
TERMINATION.
(6) A PLAN MAY ESTABLISH SUBCLASSES AND CATEGORIES WITHIN THE
CLASSES DESCRIBED IN PARAGRAPHS (1) THROUGH (6) OF SUBSECTION (A)
IN ACCORDANCE WITH REGULATIONS PRESCRIBED BY THE CORPORATION.
(C) ANY INCREASE OR DECREASE IN THE VALUE OF THE ASSETS OF A PLAN
OCCURING DURING THE PERIOD BEGINNING ON THE LATER OF (1) THE DATE A
TRUSTEE IS APPOINTED UNDER SECTION 4042(B) OR (2) //ANTE, P. 1021.// THE
DATE ON WHICH THE PLAN IS TERMINATED IS TO BE ALLOCATED BETWEEN THE PLAN
AND THE CORPORATION IN THE MANNER DETERMINED BY THE COURT (IN THE CASE
OF A COURT-APPOINTED TRUSTEE) OR AS AGREED UPON BY THE CORPORATION AND
THE PLAN ADMINISTRATOR IN ANY CASE. ANY INCREASE OR DECREASE IN THE
VALUE OF THE ASSETS OF A PLAN OCCURING AFTER THE DATE ON WHICH THE PLAN
IS TERMINATED SHALL BE CREDITED TO, OR SUFFERED BY, THE CORPORATIOM.
(D)(1) ANY RESIDUAL ASSETS OF A PLAN MAY BE DISTRIBUTED TO THE
EMPLOYER IF--'
(A) ALL LIABILITIES OF THE PLAN TO PARTICIPANTS AND THEIR
BENEFICIARIES HAVE BEEN SATISFIED,
(B) THE DISTRIBUTION DOES NOT CONTRAVENE ANY PROVISION OF LAW,
AND
(C) THE PLAN PROVIDES FOR SUCH A DISTRIBUTION IN THESE
CIRCUMSTANCES.
(2) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (1), IF ANY ASSETS OF
THE PLAN ATTRIBUTABLE TO EMPLOYEE CONTRIBUTIONS, REMAIN AFTER ALL
LIABILITIES OF THE PLAN TO PARTICIPANTS AND THEIR BENEFICIARIES HAVE
BEEN SATISFIED, SUCH ASSETS SHALL BE EQUITABLY DISTRIBUTED TO THE
EMPLOYEES WHO MADE SUCH CONTRIBUTIONS (OR THEIR BENEFICIARIES) IN
ACCORDANCE WITH THEIR RATE OF CONTRIBUTIONS.
SEC. 4045. (A) EXCEPT AS PROVIDED IN SUBSECTION (C), THE TRUSTEE IS
AUTHORIZED TO RECOVER FOR THE BENEFIT OF A PLAN FROM A PARTICIPANT THE
RECOVERABLE AMOUNT (AS DEFINED IN SUBSECTION (B)) OF ALL PAYMENTS FROM
THE PLAN TO HIM WHICH COMMENCED WITHIN THE 3-YEAR PERIOD IMMEDIATELY
PRECEDING THE TIME THE PLAN IS TERMINATED.
(B) FOR PURPOSES OF SUBSECTION (A) THE RECOVERABLE AMOUNT IS THE
EXCESS OF THE AMOUNT DETERMINED UNDER PARAGRAPH (1) OVER THE AMOUNT
DETERMINED UNDER PARAGRAPH (2).
(1) THE AMOUNT DETERMINED UNDER THIS PARAGRAPH IS THE SUM OF
THIS AMOUNT OF THE ACTUAL PAYMENTS RECEIVED BY THE PARTICIPANT
WITHIN THE 3-YEAR PERIOD.
(2) THE AMOUNT DETERMINED UNDER THIS PARAGRAPH IS THE SUM OF--'
(A) THE SUM OF THE AMOUNT SUCH PARTICIPANT WOULD HAVE RECEIVED
DURING EACH CONSECUTIVE 12-MONTH PERIOD WITHIN THE 3 YEARS IF THE
PARTICIPANT RECEIVED THE BENEFIT IN THE FORM DESCRIBED IN
PARAGRAPH (3),
(B) THE SUM FOR EACH OF THE CONSECUTIVE 12-MONTH PERIODS OF THE
LESSER OF--,
(I) THE EXCESS, IF ANY, OF $10,000 OVER THE BENEFIT IN THE FORM
DESCRIBED IN PARAGRAPH (3), OR
(II) THE EXCESS OF THE ACTUAL PAYMENT, IF ANY, OVER THE BENEFIT
IN THE FORM DESCRIBED IN PARAGRAPH (3), AND
(C) THE PRESENT VALUE AT THE TIME OF TERMINATION OF THE
PARTICIPANT'S FUTURE BENEFITS GUARANTEED UNDER THIS TITLE AS IF
THE BENEFITS COMMENCED IN THE FORM DESCRIBED IN PARAGRAPH (3).
(3) THE FORM OF BENEFIT FOR PURPOSES OF THIS SUBSECTION SHALL
BE THE MONTHLY BENEFIT THE PARTICIPANT WOULD HAVE RECEIVED DURING
THE CONSECUTIVE 12-MONTH PERIOD, IF HE HAD ELECTED AT THE TIME OF
OF THE FIRST PAYMENT MADE DURING THE 3-YEAR PERIOD, TO RECEIVE HIS
INTEREST IN THE PLAN AS A MONTHLY BENEFIT IN THE FORM OF A LIFE
ANNUITY COMMENCING AT THE TIME OF SUCH FIRST PAYMENT.
(C)(1) IN THE EVENT OF A DISTRIBUTION DESCRIBED IN SECTION 4043(B)
(7) THE 3-YEAR PERIOD REFERRED TO IN SUBSECTION (B) SHALL NOT END SOONER
THAN THE DATE ON WHICH THE CORPORATION IS NOTIFIED OF THE DISTRIBUTION.
(2) THE TRUSTEE SHALL NOT RECOVER ANY PAYMENT MADE FROM A PLAN AFTER
OR ON ACCOUNT OF THE DEATH OF A PARTICIPANT, OR TO A PARTICIPANT WHO IS
DISABLED (WITHIN THE MEANING OF SECTION 72(M)(7) OF THE INTERNAL REVENUE
CODE OF 1954). //26 USC 72.//
(3) THE CORPORATION IS AUTHORIZED TO WAIVE, IN WHOLE OR IN PART, THE
RECOVERY OF ANY AMOUNT WHICH THE TRUSTEE IS AUTHORIZED TO RECOVER FOR
THE BENEFIT OF A PLAN UNDER THIS SECTION IN ANY CASE IN WHICH IT
DETERMINES THAT SUBSTANTIAL ECONOMIC HARDSHIP WOULD RESULT TO THE
PARTICIPANT OR HIS BENEFICIARIES FROM WHOM SUCH AMOUNT IS RECOVERABLE.
SEC. 4046. THE CORPORATION AND THE PLAN ADMINISTRATOR OF ANY PLAN TO
BE TERMINATED UNDER THIS SUBTITLE SHALL FURNISH TO THE TRUSTEE SUCH
INFORMATION AS THE CORPORATION OR THE PLAN ADMINISTRATOR HAS AND, TO THE
EXTENT PRACICABLE, CAN OBTAIN REGARDING--'
(1) THE AMOUNT OF BENEFITS PAYABLE WITH RESPECT TO EACH
PARTICIPANT UNDER A PLAN TO BE TERMINATED,
(2) THE AMOUNT OF BENEFITS GUARANTEED UNDER SECTION 4022
//ANTE, P. 1015.// WHICH ARE PAYABLE WITH RESPECT TO EACH
PARTICIPANT IN THE PLAN,
(3) THE PRESENT VALUE, AS OF THE TIME OF TERMINATION, OF THE
AGGREGATE AMOUMT OF BENEFITS PAYABLE UNDER SECTION 4022
(DETERMINED WITHOUT REGARD TO SECTION 4022(B)(5)),
(4) THE FAIR AMRKET VALUE OF THE ASSETS OF THE PLAN AT THE TIME
OF TERMINATION,
(5) THE COMPUTATIONS UNDER SECTION 4044, //ANTE, P. 1025.// AND
ALL ACTURIAL ASSUMPTIONS UNDER WHICH THE ITEMS DESCRIBED IN
PARAGRAPHS (1) THROUGH (4) WERE COMPUTED, ANDL
(6) ANY OTHER INFORMATION WITH RESPECT TO THE PLAN THE TRUSTEE
MAY REQUIRE IN ORDER TO TERMINATE THE PLAN.
SEC. 4047. WHENEVER THE CORPORATION DETERMINES THAT A PLAN WHICH IS
TO BE TERMINATED, OR WHICH IS IN THE PROCESS OF BEING TERMINATED, UNDER
THIS SUBTITLE SHOULD BE TERMINATED AS A RESULT OF SUCH CIRCUMSTANCES AS
THE CORPORATION DETERMINES TO BE RELEVANT, THE CORPORATION IS AUTHORIZED
TO CEASE ANY ACTIVITIES UNDERTAKEN TO TERMINATE THE PLAN, AND TO TAKE
WHATEVER ACTION IS NECESSARY AND WITHIN ITS POWER TO RESTORE THE PLAN TO
ITS STATUS PRIOR TO THE DETERMINATION THAT THE PLAN WAS TO BE
TERMINATED. IN THE CASE OF A PLAN WHICH HAS BEEN TERMINATED UNDER
SECTION 4042 //ANTE, P. 1021.// THE CORPORATION IS AUTHORIZED IN ANY
SUCH CASE IN WHICH THE CORPORATION DETERMINES SUCH ACTION TO BE
APPROPRIATE AND CONSISTENT WITH ITS DUTIES UNDER THIS TITLE, TO TAKE
SUCH ACTION AS MAY BE NECESSARY TO RESTORE THE PLAN TO ITS
PRETERMINATION STATUS, UNCLUDING, BUT NOT LIMITED TO, THE TRANSFER TO
THE EMPLOYER OR A PLAN ADMINISTRATOR OF CONTROL OF PART OR ALL OF THE
REMAINING ASSETS AND LIABILITIES OF THE PLAN.
SEC. 4048. FOR PURPOSES OF THIS TITLE THE DATE OF TERMINATION
IS--'
(1) IN THE CASE OF A PLAN TERMINATED IN ACCORDANCE WITH THE
PROVISIONS OF SECTION 4041, //ANTE, P. 1020.// THE DATE
ESTABLISHED BY THE PLAN ADMINISTRATOR AND AGREED TO BY THE
CORPORATION,
(2) IN THE CASE OF A PLAN TERMINATED IN ACCORDANCE WITH THE
PROVISIONS OF SECTION 4042, THE DATE ESTABLISHED BY THE
CORPORATION AND AGREED TO BY THE PLAN ADMINISTRATOR, OR
(3) IN THE CASE OF A PLAN TERMINATED IN ACCORDANCE WITH THE
PROVISIONS OF EITHER SECTION IN ANY CASE IN WHICH NO AGREEMENT IS
REACHED BETWEEN THE PLAN ADMINISTRATOR AND THE CORPORATION (OR THE
TRUSTEE), THE DATE ESTABLISHED BY THE COURT.
SEC. 4061. THE CORPORATION SHALL PAY BENEFITS UNDER A PLAN
TERMINATED UNDER THIS TITLE SUBJECT TO THE LIMITATIONS AND REQUIREMENTS
OF SUBTITLE B OF THIS TITLE. //ANTE, P. 840.// AMOUNTS GUARANTEED BY
THE CORPORATION UNDER SECTION 4022 SHALL BE PAID BY THE CORPORATION OUT
OF THE APPROPRIATE FUND. //ANTE, P. 1016.//
SEC. 4062. (A) THIS SECTION APPLIES TO ANY EMPLOYER WHO MAINTAINED A
PLAN (OTHER THAN A MULTIEMPLOYER PLAN) AT THE TIME IT WAS TERMINATED,
BUT DOES NOT APPLY--'
(1) TO AN EMPLOYER WHO MAINTAINED A PLAN WITH RESPECT TO WHICH
HE PAID THE ANNUAL PREMIUM DESCRIBED IN SECTION 4006(A)(2)(B)
//ANTE, P. 1010.// FOR EACH OF THE 5 PLAN YEARS IMMEDIATELY
PRECEDING THE PLAN YEAR DURING WHICH THE PLAN TERMINATED UNLESS
THE CONDITIONS IMPOSED BY THE CORPORATION ON THE PAYMENT OF
COVERAGE UNDER SECTION 4023 DO NOT PERMIT SUCH COVERAGE TO APPLY
UNDER THE CIRCUMSTANCES, OR
(2) TO THE EXTENT OF ANY LIABILITY ARISING OUT OF THE
INSOLVENCY OF AN INSURANCE COMPANY WITH RESPECT TO AN INSURANCE
CONTRACT.
(B) ANY EMPLOYER TO WHICH THIS SECTION APPLIES SHALL BE LIABLE TO THE
CORPORATION, IN AN AMOUNT EQUAL TO THE LESSER OF--'
(1) THE EXCESS OF--'
(A) THE CURRENT VALUE OF THE PLAN'S BENEFITS GUARANTEED UNDER
THIS TITLE ON THE DATE OF TERMINATION OVER
(B) THE CURRENT VALUE OF THE PLAN'S ASSETS ALLOCABLE TO SUCH
BENEFITS ON THE DATE OF TERMINATION, OR
(2) 30 PERCENT OF THE NET WORTH OF THE EMPLOYER DETERMINED AS
OF A DAY, CHOSEN BY THE CORPORATION BUT NOT MORE THAN 120 DAYS
PRIOR TO THE DATE OF TERMIANTION, COMPUTED WITHOUT REGARD TO ANY
LIABILITY UNDER THIS SECTION.
(C) FOR PURPOSES OF SUBSECTION (B)(2) THE NET WORTH OF AN EMPLOYER
IS--'
(1) DETERMINED ON WHATEVER BASIS BEST REFLECTS, IN THE
DETERMINATION OF THE CORPORATION, THE CURRENT STATUS OF THE
EMPLOYER'S OPERATIONS AND PROSPECTS AT THE TIME SHOSEN FOR
DETERMINING THE NET WORTH OF THE EMPLOYER, AND
(2) INCREASED BY THE AMOUNT OF ANY TRANSFERS OF ASSETS MADE BY
THE EMPLOYER DETERMINED BY THE CORPORATION TO BE IMPROPER UNDER
THE CIRCUMSTANCES, UNCLUDING ANY SUCH TRANSFERS WHICH WOULD BE
INAPPROPRIATE UNDER THE BANKRUPTCY ACT //11 USC 1 NOTE.// IF THE
EMPLOYER WERE THE SUBJECT OF A PROCEEDING UNDER THAT ACT.
(D) FOR PURPOSES OF THIS SECTION THE FOLLOWIGN RULES APPLY IN THE
CASE OF CERTAIN CORPORATE ORGANIZATIONS:
(1) IF AN EMPLOYER CEASES TO EXIST BY REASON OF A
REORGANIZATION WHICH INVOLVES A MERE CHANGE IN IDENTITY, FORM, OR
PLACE OF ORGANIZATION, HOWEVER EFFECTED, A SUCCESSOR CORPORATION
RESULTING FROM SUCH REPRGANIZATION SHALL BE TREATED AS THE
EMPLOYER TO WHOM THIS SECTION APPLIES.
(2) IF AN EMPLOYER CEASES TO EXIST BY REASON OF A LIQUIDATION
INTO A PARENT CORPORATION, THE PARENT CORPORATION SHALL BE TREATED
AS THE EMPLOYER TO WHOM THIS SECTION APPLIES.
(3) IF AN EMPLOYER CEASES TO EXIST BY REASON OF A MERGER,
CONSOLIDATION, OR DIVISION, THE SUCCESSOR CORPORATION OR
CORPORATIONS SHALL BE TREATED AS THE EMPLOYER TO WHOM THIS SECTION
APPLIES.
(E) IF AN EMPLOYER CEASES OPERATIONS AT A FACILITY IN ANY LOCATION
AND, AS A RESULT OF SUCH CESSATION OF OPERATIONS, MORE THAN 20 PERCENT
OF THE TOTAL NUMBER OF HIS EMPLOYEES WHO ARE PARTICIPANTS UNDER A PLAN
ESTABLISHED AND MAINTAINED BY HIM ARE SEPARATED FROM EMPLOYMENT, THE
EMPLOYER SHALL BE TREATED WITH RESPECT TO THAT PLAN AS IF HE WERE A
SUBSTANTIAL EMPLOYER UNDER A PLAN UNDER WHICH MORE THAN ONE EMPLOYER
MAKES CONTRIBUTIONS AND THE PROVISIONS OF SECTIONS 4063, 4064, AND 4065
SHALL APPLY.
SEC. 4063. (A) EXCEPT AS PROVIDED IN SUBSECTION (D), THE PLAN
ADMINISTRATOR OF A PLAN UNDER WHICH MORE THAN PNE EMPLOYER MAKES
CONTRIBUTIONS--'
(1) SHALL NOTIFY THE CORPORATION OF THE WITHDRAWAL OF A
SUBSTANTIAL EMPLOYER FROM THE PLAN, WITHIN 60 DAYS AFTER SUCH
WITHDRAWAL, AND
(2) REQUEST THAT THE CORPORATION DETERMINE THE LIABILITY OF
SUCH EMPLOYER UNDER THIS SUBTITLE WITH RESPECT TO SUCH WITHDRAWAL.
THE CORPORATION SHALL, AS SOON AS PRACTICABLE THEREAFTER, DETERMINE
WHETHER SUCH EMPLOYER IS LIABLE FOR ANY AMOUNT UNDER THIS SUBTITLE WITH
REPSECT TO THE WITHDRAWAL AND NOTIFY SUCH EMPLOYER OF SUCH LIABILITY.
(B) EXCEPT AS PROVIDED IN SUBSECTION (C), AN EMPLOYER WHO WITHDRAWS
FROM A PLAN TO WHICH SECTION 4021 //ANTE, P. 1014.// APPLIES, DURING A
PLAN YEAR FOR WHICH HE WAS A SUBSTANTIAL EMPLOYER, AND WHO IS NOTIFIED
BY THE CORPORATION AS PROVIDED BY SUBSECTION (A), SHALL BE LIABLE TO THE
CORPORATION IN ACCORDANCE WITH THE PROVISIONS OF SECTION 4062 //ANTE, P.
1029.// AND THIS SECTION. THE AMOUNT OF SUCH EMPLOYER'S LIABILITY SHALL
BE COMPUTED ON THE BASIS OF AN AMOUNT DETERMINED BY THE CORPORATION TO
BE THE AMOUNT DESCRIBED IN SECTION 4062 FOR THE ENTIRE PLAN, AS IF THE
PLAN HAD BEEN TERMINATED BY THE CORPORATION ON THE DATE OF THE
EMPLOYER'S WITHDRAWAL, MULTIPLIED BY A FRACTION--'
(1) THE NUMERATOR OF WHICH IS THE TOTAL AMOUNT REQUIRED TO BE
CONTRIBUTED TO THE PLAN BY SUCH EMPLOYER FOR THE LAST 5 YEARS
ENDING PRIOR TO THE WITHDRAWAL, AND
(2) THE DENOMINATOR OF WHICH IS THE TOTAL AMOUNT REQUIRED TO BE
CONTRIBUTED TO THE PLAN BY ALL EMPLOYERS FOR SUCH LAST 5 YEARS.
IN ADDITION TO AN IN LIEU OF THE MANNER PRESCRIBED IN THE PRECEDING
SENTENCE, THE CORPORATION MAY ALSO DETERMINE THE LIABILITY OF EACH SUCH
EMPLOYER ON ANY OTHER EQUITABLE BASIS PRESCRIBED BY THE CORPORATION IN
REGULATIONS. ANY AMOUNT COLLECTED BY THE CORPORATION UNDER THIS
SUBSECTION SHALL BE HELD IN ESCROW SUBJECT TO DISPOSITION IN ACCORDANCE
WITH THE PROVISIONS OF PARAGRAPHS (2) AND (3) OF SUBSECTION (C).
(C)(1) IN LIEU OF PAYMENT OF HIS LIABILITY UNDER THIS SECTION THE
EMPLOYER MAY BE REQUIRED TO FURNISH A BOND TO THE CORPORATION IN AN
AMOUNT NOT EXCEEDING 150 PERCENT OF HIS PIABILITY TO INSURE PAYMENT OF
HIS LIABILITY UNDER THIS SECTION. THE BOND SHALL HAVE AS SURETY THEREON
A CORPORATE SURETY COMPANY WHICH IS AN ACCEPTABLE SURETY ON FEDERAL
BONDS UNDER AUTHORITY GRANTED BY THE SECREATRY OF THE TREASURY UNDER
SECTIONS 6 THROUGH 13 OF TITLE 6, UNITED STATES CODE. ANY SUCH BOND
SHALL BE IN A FORM OR OF A TYPE APPROVED BY THE SECREATARY INCLUDING
INDIVIDUAL BONDS OR SCHEDULE OR BLANKET FORMS ON BONDS WHICH COVER A
GROUP OR CLASS.
(2) IF THE PLAN IS NOT TERMINATED WITHIN THE 5-YEAR PERIOD COMMENCING
ON THE DAY OF WITHDRAWAL, THE LIABILITY OF SUCH EMPLOYER IS ABATED AND
ANY PAYMENT HELD IN ESCROW SHALL BE REFUNDED WITHOUT INTEREST TO THE
EMPLOYER (OR HIS BOND CANCELLED) IN ACCORDANCE WITH BYLAWS OR RULES
PRESCRIBED BY THE CORPORATION.
(3) IF THE PLAN TEMINATES WITHIN THE 5-YEAR PERIOD COMMENCING ON THE
DAY OF WITHDRAWAL, THE CORPORATION SHALL--'
(A) DEMAND PAYMENT OR REALIZE ON THE BOND AND HOLD SUCH AMOUNT
IN ESCROW FOR THE BENEFIT OF THE PLAN;
(B) TREAT ANY ESCROWED PAYMENTS UNDER THIS SECTION AS IF THEY
WERE PLAN ASSETS AND APPLY THEM IN A MANNER CONSISTENT WITH THIS
SUBTITLE; AND
(C) REFUND ANY AMOUNT TO THE EMPLOYER WHICH IS NOT REQUIRED TO
MEET ANY OBLIGATION OF THE CORPORATION WITH RESPECT TO THE PLAN.
(D) THE PROVISIONS OF THIS SUBSECTION APPLY IN THE CASE OF A
WITHDRAWAL DESCRIBED IN SUBSECTION (A), AND THE PROVISIONS OF
SUBSECTIONS (B) AND (C) SHALL NOT APPLY, IF THE CORPORATION DETERMINES
THAT THE PROCEDURE PROVIDED FOR UNDER THIS SUBSECTION IS CONSISTENT WITH
THE PURPOSES OF THIS SECTION AND SECTION 4064 AND IS MORE APPROPRIATE IN
THE PARTICULAR CASE. UPON A SHOWING BY THE PLAN ADMINISTRATOR OF A PLAN
THAT THE WITHDRAWAL FROM THE PLAN BY ANY EMPLOYER OR EMPLOYERS HAS
RESULTED, OR WILL RESULT, IN A SIGNIFICANT REDUCTION IN THE AMOUNT OF
AGGREAGTE CONTRIBUTIONS TO OR UNDER THE PLAN BY EMPLOYERS, THE
CORPORATION MAY--'
(1)REQUIRE THE PLAN FUND TO BE EQUITABLY ALLOCATED BETWEEN
THOSE PARTICIPANTS NO LONGER WORKING ION COVERED SERVICE UNDER THE
PLAN AS A RESULT OF THEIR EMPLOYER'S WITHDRAWAL, AND THOSE
PARTICIPANTS WHO REAMAIN IN COVERED SERVICE UNDER THE PLAN;
(2) TREAT THAT PORTION OF THE PLAN FUNDS ALLOCABLE UNDER
PARAGRAPH (1) TO PARTICIPANTS NO LONGER IN COVERED SERVICE AS A
TERMINATION; AND
(3) TREAT THAT PORTION OF THE PLAN FUND ALLOCABLE TO
PARTICIPANTS REMAINING IN COVERED SERVICE AS A SEPARATE PLAN.
(E) THE CORPORATION IS AUTHORIZED TO WAIVE THE APPLICATION OF THE
PROVISIONS OF SUBSECTIONS (B), (C), AND (D) OF THIS SECTION TO ANY
EMPLOYER OR PLAN ADMINISTRATOR WHENEVER IT DETERMINES THAT THERE IS AN
INDEMNITY AGREEMENT IN EFFECT AMONG ALL OTHER EMPLOYERS UNDER THE PLAN
WHICH IS ADEQUATE TO SATISFY THE PURPOSES OF THIS SECTION AND OF SECTION
4064.
SEC. 4064. (A) THIS SECTION APPLIES TO ALL EMPLOYERS WHO MAINTAIN A
PLAN UNDER WHICH MORE THAN ONE EMPLOYER MAKES CONTRIBUTIONS AT THE TIME
SUCH PLAN IS TERMINATED, OR WHO, AT ANY TIME WITHIN THE 5 PLAN YEARS
PRECEDING THE DATE OF TERMINATION, AMDE CONTRIBUTIONS UNDER THE PLAN.
(B) THE CORPORATION SHALL DETERMINE THE LIABILITY OF EACH SUCH
EMPLOYER IN A MANNER CONSISTENT WITH SECTION 4062 //ANTE, P. 1029.//
EXCEPT THAT THE AMOUNT OF THE LIABILITY DETERMINED BUNDER SECTION 4062(
B)(1) WITH RESPECT TO THE ENTIRE PLAN SHALL BE ALLOCATED TO EACH EMPLYER
BY MULTIPLYING SUCH AMOUNTS BY A FRACTION--'
(1) THE NUMERATOR OF WHICH IS THE AMOUNT REQUIRED TO BE
CONTRIBUTED TO THE PLAN BY EACH EMPLOYER FOR THE LAST 5 PLAN YEARS
ENDING PRIOR TO THE TERMINATION, AND
(2) THE DENOMINATOR OF WHICH IS THE TOTAL AMOUNT REQUIRED TO BE
CONTRIBUTED TO THE PLAN BY ALL SUCH EMPLOYERS FOR SUCH LAST 5
YEARS,
AND THE LIMITATION DESCRIBED IN SECTION 4062(B)(2) SHALL BE APPLIED
SEPARATELY TO EACH EMPLOYER. THE CORPORATION MAY ALSO DETERMINE THE
LIABILITY OF EACH EMPLOYER ON ANY OTHER EQUITABLE BASIS PRESCRIBED BY
THE CORPORATION IN REGULATIONS.
SEC. 4065. FOR EACH PLAN YEAR FOR WHICH SECTION 4021 APPLIES TO A
PLAN, THE PLAN ADMINISTRATOR SHALL FILE WITH THE CORPORATION, ON A FORM
PRESCRIBED BY THE CORPORATION, AN ANNUAL REPORT WHICH INDENTIFIES THE
PLAN AND PLAN ADMINSITRATOR AND WHICH INCLUDES--'
(1) A COPY OF EACH NOTIFICATION REQUIRED UNDER SECTION 4063
//ANTE, P. 1030.// WITH RESPECT TO SUCH YEAR, AND
(2) A STATEMENT DISCLOSING WHETHER ANY REPORTABLE EVENT
(DESCRIBED IN SECTION 4043(B)) //ANTE, P. 1024.// OCCURED DURING
THE PLAN YEAR.
THE REPORT SHALL BE FILED WITHIN 6 MONTHS AFTER THE CLOSE OF THE PLAN
YEAR TO WHICH IT RELATES. THE CORPORATION SHALL COOPERATE WITH THE
SECRETARY OF THE TREASURY AND THE SECRETARY OF LABOR IN AN ENDEAVOR TO
COORDINATE THE TIMING AND CONTENT, AND POSSIBLY OBTAIN THE COMBINATION,
OF REPORTS UNDER THIS SECTION WITH REPORTS REQUIRED TO BE MADE BY PLAN
ADMINISTRATORS TO SUCH SECRETARIES.
SEC. 4066. THE PLAN ADMINISTRATOR OF EACH PLAN UNDER WHICH
CONTRIBUTIONS ARE MADE BY MORE THAN ONE EMPLOYER SHALL NOTIFY, WITHIN 6
MONTHS AFTER THE CLOSE OF EACH PLAN YEAR, ANY EMPLOYER MAKING
CONTRIBUTIONS UNDER THAT PLAN WHO IS DESCRIBED IN SECTION 4001(A)(2)
//ANTE, P. 1003.// THAT HE IS A SUBSTANTIAL EMPLOYER FOR THAT YEAR.
SEC. 4067. THE CORPORATION IS AUTHORIZED TO MAKE ARRANGEMENTS WITH
EMPLOYERS WHO ARE LIABLE UNDER SECTION 4062, 4063, OR 4064 FOR PAYMENT
ON SUCH TERMS AND FOR SUCH PERIODS AS THE CORPORATION DEEMS EQUITABLE
AND APPROPRIATE.
SEC. 4068. (A) IF ANY EMPLOYER OR EMPLOYERS LIABLE TO THE
CORPORATION UNDER SECTION 4062, 4063, 4064 //ANTE, PP. 1029 - 1031.//
NEGLECT OR REFUSE TO PAY, AFTER DEMAND, THE AMOUNT OF SUCH LIABILITY
(INCLUDIGN INTEREST), THERE SHALL BE A LIEN IN FAVOR OF THE CORPORATION
UPON ALL PROPERTY AND RIGHTS TO PROPERTY, WHETHER REAL OR PERSONAL,
BELONGONG TO SUCH EMPLOYER OR EMPLOYERS.
(B) THE LIEN IMPOSED BY SUBSECTION (A) ARISES ON THE DATE OF
TERMIANTION OF A PLAN, AND CONTINUES UNTIL THE LIABILITY IMPOSED UNDER
SECTION 4062, 4063, OR 4064 IS SATISFIED OR BECOMES UNENFORCEABLE BY
REASON OF LAPSE OF TIME.
(C)(1) EXCEPT AS OTHERWISE PROVIDED UNDER THIS SECTION, THE PRIORITY
OF THE LIEN IMPOSED UNDER SUBSECTION (A) SHALL BE DETERMINED IN THE SAME
MANNER AS UNDER SECTION 6323 OF THE INTERNAL REVENUE CODE OF 1954. SUCH
SECTION 6323 //29 USC 6323.// SHALL BE APPLIED BY SUBSTITUTING "LIEN
IMPOSED BY SECTION 4068 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT
OF 1974" FOR "LIEN IMPOSED BY SECTION 6321"; "CORPORATION" FOR
"SECRETARY OR HIS DELEGATE"; "EMPLOYER LIABILITY LIEN" FOR "TAX LIEN";
"EMPLOYER" FOR "TAXPAYER"; "LIEN ARISING UNDER SECTION 4068(A) OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974" FOR "ASSETMENT OF THE
TAX"; AND "PAYMENT OF THE LOAN VALUE IS MADE TO THE CORPORATION" FOR
"SATISFACTION OF A LEVY PURSUANT TO SECTION 6332(B)"; //26 USC 6332.//
EACH PLACE SUCH TERMS APPEARS.
(2) IN THE CASE OF BANKRUPTCY OR INCOLVENCY PROCEEDINGS, THE LIEN
IMPOSED UNDER SUBSECTION (A) SHALL BE TREATED IN THE SAME MANNER AS A
TAX DUE AND OWING TO THE UNITED STATES FOR PURPOSES OF THE BANKRUPTCY
ACT OR SECTION 3466 OF THE REVISED STATUTES (31 U.S.C. 191). //11 USC 1
NOTE.//
(3) FOR PURPOSES OF APPLYING SECTION 6323(A) OF THE INTERNAL REVENUE
CODE OF 1954 //26 USC 6323.// TO DETERMINE THE PRIORITY BETWEEN THE LIEN
IMPOSED UNDER SUBSECTION (A) AND A FEDERAL TAX LIEN, EACH LIEN SHALL BE
TREATED AS A JUDGMENT LIEN ARISING AS OF THE TIME NOTICE OF SUCH LIEN IS
FILED.
(4) FOR PURPOSES OF THIS SUBSECTION, NOTICE OF THE LIEN IMPOSED BY
SUBSECTION (A) SHALL BE FILED IN THE SAM MANNER AS UNDER SECTION 6323
(F) AND (G) OF THE INTERNAL REVENUE CODE OF 1954.
(D)(1) IN ANY CASE WHERE THERE HAS BEEN A REFUSAL OR NEGLECT TO PAY
THE LIABILITY IMPOSED UNDER SECTION 4062, 4063, OR 4064, //ANTE, PP.
1029 - 1031.// THE CORPORATION MAY BRING CIVIL ACTION IN A DISTRICT
COURT OF THE UNITED STATES TO ENFORCE THE LIEN OF THE CORPORATION UNDER
THIS SECTION WITH RESPECT TO SUCH LIABILITY OR TO SUBJECT ANY PROPERTY,
OF WHATEVER NATURE, OF THE EMPLOYER, OR IN WHICH HE HAS ANY RIGHT,
TITLE, OR INTEREST TO THE PAYMENT OF SUCH LIABILITY.
(2) THE LIABILITY IMPOSED BY SECTION 4062, 4063, OR 4064 MAY BE
COLLECTED BY A PROCEEDING IN COURT IF THE PROCEEDING IS COMMENCED WITHIN
6 YEARS AFTER THE DATE UPON WHICH THE PLAN WAS TERMINATED OR PRIOR TO
THE EXPIRATION OF ANY PERIOD FOR COLLECTION AGREED UPON IN WRITING BY
THE CORPORATION AND THE EMPLOYER BEFORE THE EXPIRATION OF SUCH 6-YEAR
PERIOD. THE PERIOD OF LIMITATIONS PROVIDED UNDER THIS PARAGRAPH SHALL
BE SUSPENDED FOR THE PERIOD THE ASSETS OF THE EMPLYER ARE IN THE CONTROL
OR CUSTODY OF ANY COURT OF THE UNITED STATES, OR OF ANY STATE, OR OF THE
DISTRICT OF COLUMBIA, AND FOR 6 MONTHS THEREAFTER, AND FOR ANY PERIOD
DURING WHICH THE EMPLOYER IS OUTSIDE THE UNITED STATES IF SUCH PERIOD OF
ABSENCE IS FOR A CONTINUOUS PERIOD OF AT LEAST 6 MONTHS.
(E) IF THE CORPORATION DETERMINES, WITH THE CONSENT OF THE BOARD OF
DIRECTORS, THAT RELEASE OF THE LIEN OR SUBORDINATION OF THE LIEN TO ANY
OTHER CREDITOR OF THE EMPLOYER OR EMPLOYERS WOULD NOT ADVERSELY AFFECT
THE COLLECTION OF THELIABILITY IMPOSED UNDER SECTION 4062, 4063, OR
4064, OR THAT THE AMOUNT REALIZABLE BY THE CORPORATION FROM THE PROPERTY
TO WHICH THE LIEN ATTACHES WILL ULTIMATELY BE INCREASED BY SUCH RELEASE
OR SUBORDINATION, AND THAT THE ULTIMATE COLLECTION OF THE LIABILITY WILL
BE FACILITATED BY SUCH RELEASE OR SUBORDINATION, THE FORPORATION MAY
ISSUED A CERTIFICATE OF RELEASE OR SUBORDINATION OF THE LIEN WITH
RESPECT TO SUCH PROPERTY, OR ANY PART THEREOF.
SEC. 4081. (A) SECTION 404 OF THE INTERNAL REVENUE CODE OF 1954 //26
USC 404.// (RELATING TO DEDUCTION FOR CONTRIBUTIONS OF AN EMPLOYER TO
WMPLOYEES' TRUST OR ANNUITY PLAN IN COMPENSATION UNDER A
DEFERRED-PAYMENT PLAN) IS AMENDED BY ADDING AT THE END THEREOF THE
FOLLOWING NEW SUBSECTION:
"(G) CERTAIN EMPLOYER LIABILITY PAYMENTS CONSIDERED AS
CONTRIBUTIONS.--' FOR PURPOSES OF THIS SECTION ANY AMOUNT PAID BY AN
EMPLOYER UNDER SECTION 4062, 4063, OR 4064 OF THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974 //ANTE, PP. 1029 - 1031.// SHALL BE TREATED
AS A CONTRIBUTION TO WHICH THIS SECTION APPLIES BY SUCH EMPLOYER TO OR
UNDER A STOCK BONUS, PENSION, PROFIT-SHARING, OR ANNUITY PLAN.".
(B) SECTION 6511(D) OF THE INTERNAL REVENUE CODE OF 1954 //26 USC
6511.// (RELATING TO SPECIAL RULES APPLICABLE TO INCOME TAXES) IS
AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING NEW PARAGRAPH:
"(8) SPECIAL PERIOD OF LIMITATION WITH RESPECT TO AMOUNTS
INCLUDED IN INCOME SUBSEQUENTLY RECAPTURED UNDER QUALIFIED PLAN
TERMINATION.--IF THE CLAIM FOR CREDIT OR REFUND RELATES TO AN
OVERPAYMENT OF TAX IMPOSED BY SUBTITLE A ON ACCOUNT OF THE
RECAPTURE, UNDER SECTION 4045 OF THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, //ANTE, P. 1027.// OF AMOUNTS INCLUDED IN
INCOME FOR A PRIOR TAXABLE YEAR, THE 3-YEAR PERIOD OF LIMITATION
PRESCRIBED IN SUBSECTION (A) SHALL BE EXTENDED, FOR PURPOSES OF
PERMITTING A CREDIT OR REFUND OF THE AMOUNT OF THE RECAPTURE,
UNTIL THE DATE WHICH OCCURS ONE YEAR AFTER THE DATE ON WHICH SUCH
RECAPTURED AMOUNT IS PAID BY THE TAXPAYER.".
SEC. 4082. (A) THE PROVISIONS OF THIS TITLE TAKE EFFECT ON THE DATE
OF ENACTMENT OF THIS ACT. //29 USC 13819//
(B) NOTWITHSTANDING THE PROVISIONS OF SUBSECTION (A), THE CORPORATION
SHALL PAY BENEFITS GUARANTEED UNDER THIS TITLE WITH REPSECT TO ANY
PLAN--'
(1) WHICH IS NOT A MULTIEMPLOYER PLAN,
(2) WHICH TERMINATES AFTER JUNE 30, 1974, AND BEFORE THE DATE
OF ENACTMENT OF THIS ACT,
(3) TO WHICH SECTION 4021 //ANTE, P. 1014.// WOULD APPLY IF
THAT SECTION WERE EFFECTIVE BEGINNING ON JULY 1, 1974, AND
(4) WITH RESPECT TO WHICH A NOTICE IS FILED WITH THE SECRETARY
OF LABOR AND RECEIVED BY HIM NOT LATER THAN 10 DAYS AFTER THE DATE
OF ENACTMENT OF THIS ACT, EXCEPT THAT, FOR REASONABLE CAUSE SHOWN,
SUCH NOTICE MAY BE FILED WITH THE SECRETARY OF LABOR AND RECEIVED
BY HIM NOT LATER THAN OCTOBER 31, 1974, STATING THAT THE PLAN IS A
PLAN DESCRIBED IN PARAGRAPHS (1), (2), AND (3).
THE CORPORATION SHALL NOT PAY BENEFITS GUARANTEED UNDER THIS TITLE WITH
RESPECT TO A PLAN DESCRIBED IN THE PRECEDING SENTENCE UNLESS THE
CORPORATION FINDS SUBSTANTIAL EVIDENCE THAT THE PLAN WAS TERMINATED FOR
A REASONABLE BUSINESS PURPOSE AND NOT FOR THE PURPOSE OF BOTAINING THE
PAYMENT OF BENEFITS BY THE CORPORATION UNDER THIS TITLE OR FOR THE
PURPOSE OF ABOIDING THE LIABILITY WHICH MIGHT BE IMPOSED UNDER SUBTITLE
D IF THE PLAN TERMINATED ON OR AFTER THE DATE ON ENACTMENT OF THIS ACT.
THE PROVISIONS OF SUBTITLE D DO NOT APPLY IN THE CASE OF SUCH A PLAN
WHICH TERMINATES BEFORE THE DATE OF ENACTMENT OF THIS ACT. FOR PURPOSES
OF DETERMINING WHETHER A PLAN IS A PLAN DESCRIBED IN PARAGRAPH (2), THE
PROVISIONS OF SECTION 4048 //ANTE, P. 1028.// SHALL NOT APPLY, BUT THE
CORPORATION SHALL MAKE THE DETERMINATION ON THE BASIS OF THE DATE ON
WHICH BENEFITS CEASED TO ACCRUE OR ON ANY OTHER REASONABLE BASIS
CONSISTENT WITH THE PURPOSES OF THIS SUBSECTION.
(C)(1) EXCEPT AS PROVIDED IN PARAGRAPHS (2), (3), AND (4), THE
CORPORATION SHALL NOT PAY BENEFITS GUANRATEED UNDER THIS TITLE WITH
RESPECT TO A MULTIEMPLOYER PLAN WHICH TERMINATES BEFORE JANUARY 1, 1978.
WHENEVER THE CORPORATION EXERCISES THE AUTHORITY GRANTED UNDER
PARAGRAPH (2) OR (3), THE CORPORATION SHALL NOTIFY THE COMMITTEE ON
EDUCATION AND LABOR AND THE COMMITTEE ON WAYS AND MEANS OF THE HOUSE OF
REPRESENTATIVES, AND THE COMMITTEE ON LABOR AND PUBLIC WELFARE AND THE
COMMITTEE ON FINANCE OF THE SENATE.
(2) THE CORPORATION MAY, IN ITS DISCRETION, PAY BENEFITS GUARANTEED
UNDER THIS TITLE WITH RESPECT TO A MULTIEMPLOYER PLAN WHICH TERMINATES
AFTER THE DATE OF ENACTMENT OF THIS ACT AND BEFORE JANUARY 1, 1978,
IF--'
(A) THE PLAN WAS MAINTAINED DURING THE 60 MONTHS IMMEDIATELY
PRECEDING THE DATE ON WHICH THE PLAN TERMINATES, AND
(B) THE CORPORATION DETERMINES THAT THE PAYMENT BY THE
CORPORATION OF BENEFITS GUARANTEED UNDER THIS TITLE WITH RESPECT
TO THAT PLAN WILL NOT JEOPARDIZE THE PAYMENTS THE CORPORATION
ANTICIPATES IT MAY BE REQUIRED TO MAKE IN CONNECTION WITH BENEFITS
GUARANTEED UNDER THIS TITLE WITH RESPECT TO MULTIEMPLOYER PLANS
WHICH TERMINATES AFTER DECEMBER 31, 1977.
(3) NOTWITHSTANDING ANY PROVISION OF SECTION 4021 OR 4022 WHICH WOULD
PREVENT SUCH PAYMENTS, THE CORPORATION IN CARRYING OUT ITS AUTHORITY
UNDER PARAGRAPH (2), MAY PAY BENEFITS GUARANTEED UNDER THIS TITLE WITH
RESPECT TO A MULTIEMPLOYER PLAN DESCRIBED IN PARAGRAPH (2) IN ANY CASE
IN WHICH THOSE BENEFITS WOULD OTHERWISE NOT BE PAYABLE IF--'
(A) THE PLAN HAS BEEN IN EFFECT FOR AT LEAST 5 YEARS,
(B) THE PLAN HAS BEEN IN SUBSTANTIAL COMPLIANCE WITH THE
FUNDUNG REQUIREMENTS FOR A QUALIFIED PLAN WITH RESPECT TO THE
EMPLOYEES AND FORMER EMPLOYEES IN THOSE EMPLOYMENT UNITS ON THE
BASIS OF WHICH THE PARTICIPATING EMPLOYERS HAVE CONTRIBUTED TO THE
PLAN FOR THE PRECEDING 5 YEARS, AND
(C) THE PARTICIPATING EMPLOYERS AND EMPLOYEE ORGANIZATION OR
ORGANIZATIONS HAD NO REASONABLE RECOURSE OTHER THAN TERMINATION.
(4) IF THE CORPORATION DETERMINES, UNDER PARAGRAPH (2) OR (3), THAT
IT WILL PAY BENEFITS GURANTEED UNDER THIS TITLE WITH RESPECT TO A
MULTIEMPLOYER PLAN WHICH TERMINATES BEFORE JANUARY 1, 1978, THE
CORPORATION--'
(A) MAY ESTABLISH REQUIREMENTS FOR THE CONTINUATION OF PAYMENTS
WHICH COMMENCED BEFORE JANUARY 2, 1974, WITH RESPECT TO RETIRED
PARTICIPANTS UNDER THE PLAN,
(B) MAY NOT, NOTWITHSTANDING ANY OTHER PROVISION OF THIS TITLE,
MAKE PAYMENTS WITH RESPECT TO ANY PARTICIPANT UNDER SUCH A PLAN
WHO, ON JANUARY 1, 1974, WAS RECEIVING PAYMENT OF RETIREMENT
BENEFITS, IN EXCESS OF THE AMOUNTS AND RATES PAYABLE WITH RESPECT
TO SUCH PARTICIPANT ON THAT DATE,
(C) MAY NOT MAKE ANY PAYMENTS WITH RESPECT TO BENEFITS
GUARANTEED UNDER THIS TITLE IN CONNECTION WITH SUCH A PLAN WHICH
ARE DERIVED, INDIRECTLY OR DIRECTLY, FROM AMOUNTS BORROWED UNDER
SECTION 4005(C), //ANTE, P. 1009.// AND
(D) SHALL REVIEW FROM TIME TO TIME PAYMENTS MADE UNDER THE
AUTHORITY GRANTED TO IT BY PARAGRAPHS (2) AND (3), AND REDUCE OR
TERMINATE SUCH PAYMENTS TO THE EXTENT NECESSARY TO AVOID
JEOPARDIZING THE ABILITY OF THE CORPORATION TO MAKE PAYMENTS OF
BENEFITS GUARANTEED UNDER THIS TITLE IN CONNECTION WITH
MULTIEMPLOYER PLANS WHICH TERMINATE AFTER DECEMBER 31, 1977,
WITHOUT INCREASING PREMIUM RATES FOR SUCH PLANS.
LEGISLATIVE HISTORY:
HOUSE REPORTS: NO. 93 - 533 (COMM. ON EDUCATION AND LABOR); NO. 93
- 779 ACCOMPANYING H.R. 12481; NO. 93 - 837 ACCOMPANYING H.R. 12855;
NO. 93 - 298 ACCOMPANYING H.R. 4200 (ALL FROM COMM. ON WAYS AND MEANS)
AND NO. 93 - 1280 (COMM. OF CONFERENCE).
SENATE REPORTS: NO. 93 - 394 ACCOMPANYING H.R. 4200 (COMM. ON
FINANCE) AND NO. 93 - 1090 (COMM. OF CONFERENCE).
CONGREESIONAL RECORD:
VOL. 119 (1973): JUNE 27, H.R. 4200 CONSIDERED AND PASSED
HOUSE.
SEPT. 19, H.R. 4200 CONSIDERED AND PASSED SENATE, AMENDED.
VOL. 129 (1974): FEB. 26 - 28, CONSIDERED AND PASSED HOUSE.
MAR. 4, CONSIDERED AND PASSED SENATE, AMENDED,
AUG. 20, HOUSE AGREED TO CONFERENCE REPORT.
AUG. 22, SENATE AGREED TO CONFERENCE REPORT.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS:
VOL. 10, NO. 36 (1974) SEPT. 2, PRESIDENTIAL STATEMENT.
PUBLIC LAW 93-406, 88 STAT 829, EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974. (TITLE II)
SEC. 1001. AMENDMENT OF INTERNAL REVENUE CODE OF 1954.
EXCEPT AS OTHERWISE EXPRESSLY PROVIDED, WHENEVER IN THIS TITLE AN
AMENDMENT OR REPEAL IS EXPRESSED IN TERMS OF AN AMENDMENT TO, OR REPEAL
OF, A SECTION OR OTHER PROVISION, THE REFERENCE SHALL BE CONSIDERED TO
BE MADE TO A SECTION OR OTHER PROVISION OF THE INTERNAL REVENUE CODE OF
1954. //68A STAT. 3, 26 USC 1 ET SEQ.//
SEC. 1011. MINIMUM PARITCIPATION STANDARDS.
PART I OF SUBCHAPTER D OF CHAPTER I (RELATING TO PENSION, PROFIT-
SHARING, STOCK BONUS, PLAN, ETC. //26 USC 401.// IS AMENDED BY ADDING
AT THE END THEREOF THE FOLLOWING:
"SEC. 410 MINIMUM PARTICIPATION STANDARDS.
"SEC. 411. MINIMUM VESTING STANDARDS.
"SEC. 412. MINIMUM FUNDING STANDARDS.
"SEC. 413. COLLECTIVELY BARGAINED PLANS.
"SEC. 414. DEFINITIONS AND SPECIAL RULES.
"SEC. 415. LIMITATIONS ON BENEFITS AND CONTRIBUTIONS UNDER QUALIFIED
PLANS.
"SEC. 410. MINIMUM PARTICIPATION STANDARDS.
"(A) PARTICIPATION.--,
"(1) MINIMUM AGE AND SERVICE CONDITIONS.--,
"(A) GENERAL RULE.--A TRUST SHALL NOT CONSTITUTE A QUALIFIED
TRUST UNDER SECTION 401(A) IF THE PLAN OF WHICH IT IS A PART
REQUIRES, AS A CONDITION OF PARTICIPATION IN THE PLAN, THAN AN
EMPLOYEE COMPLETE A PERIOD OF SERVICE WITH THE EMPLOYER OR
EMPLOYERS MAINTAINING THE PLAN EXTENDING BEYOND THE LATER OF THE
FOLLOWING DATES--,
"(I) THE DATE ON WHICH THE EMPLOYEE ATTAINS THE AGE OF 25; OR
"(II) THE DATE ON WHICH HE COMPLETES 1 YEAR SERVICE.
"(B) SPECIAL RULES FOR CERTAIN PLANS.--,
"(I) IN THE CASE OF ANY PLAN WHICH PROVIDES THAT AFTER NOT MORE
THAN 3 YEARS OF SERVICE EACH PARTICIPANT HAS A RIGHT TO 100
PERCENT OF HIS ACCRUED BENEFIT UNDER THE PLAN WHICH IS
NONFORFEITABLE (WITHIN THE MEANING OF SECTION 411 //POST, P.
901.// AT THE TIME SUCH BENEFIT ACCRUES, CLAUSE (II) OF
SUBPARAGRAPH (A) SHALL BE APPLIED BY SUBSTITUTING '3 YEARS OF
SERVICE' FOR '1 YEAR OF SERVICE'.
"(II) IN THE CASE OF ANY PLAN MAINTAINED EXCLUSIVELY FOR
EMPLOYEES OF AN EDUCATIONAL INSTITUTION (AS DEFINED IN SECTION
170(B) (1) (A) (II)) //26 USC 170.// BY AN EMPLOYER WHICH IS
EXEMPT FROM TAX UNDER SECTION 501(A) //26 USC 501.// WHICH
PROVIDES THAT EACH PARTICIPANT HAVING AT LEAST 1 YEAR OF SERVICE
HAS A RIGHT TO !00 PERCENT OF HIS ACCRUED BENEFIT UNDER THE PLAN
WHICH IS NONFORFEITABLE (WITHIN THE MEANING OF SECTION 411) AT THE
TIME SICH BENEFIT ACCRUES, CLAUSE (I) OF SUBPARAGRAPH (A) SHALL BE
APPLIED BY SUBSTITUTING '30' FOR '25'. THIS CLAUSE SHALL NOT
APPLY TO ANY PLAN TO WHICH CLAUSE (I) APPLIES.
"(2) MAXIMUN AGE CONDITIONS.-- A TRUST SHALL NOT CONSTITUTE A
QUALIFIED TRUST UNDER SECTION 401(A) //26 USC 401.// IF THE PLAN OF
WHICH IT IS PART EXCLUDES FROM PARTICIPATION (ON THE BASIS OF AGE)
EMPLOYEES WHO HAVE ATTAINED A SPECIFIED AGE, UNLESS--,
"(A) THE PLAN IS A--,
"(I) DEFINED BENEFIT PLAN, OR
"(II) TARGET BENEFIT PLAN (AS DEFINED UNDER REGULATIONS
PRESCRIBED BY THE SECRETARY OR HIS DELEGATE), AND
"(B) SUCH EMPLOYEES BEGIN EMPLOYMENT WITH THE EMPLOYER AFTER
THEY HAVE ATTAINED A SPECIFIED AGE WHICH IS NOT MORE THAN 5 YEARS
BEFORE THE NORMAL RETIREMENT AGE UNDER THE PLAN.
"(3) DEFINITION OF YEAR OF SERVICE.--,
"(A) GENERAL RULE.--FOR PURPOSES OF THIS SUBSECTION, THE TERM
'YEAR OF SERVICE' MEANS A 12-MONTH PERIOD DURING WHICH THE
EMPLOYEE HAS NOT LESS THAN 1,000 HOURS OF SERVICE. FOR PURPOSES
OF THIS PARAGRAPH, COMPUTATION OF ANY 12-MONTH PERIOD SHALL BE
MADE WITH REFERENCE TO THE DATE ON WHICH THE EMPLOYEE'S EMPLOYMENT
COMMENCED, EXCEPT THAT, UNDER REGULATIONS PRESCRIBED BY THE
SECRETARY OF LABOR, SUCH COMPUTATION MAY BE MADE BY REFERENCE TO
THE FIRST DAY OF A PLAN YEAR IN THE CASE OF AN EMPLOYEE WHO DOES
NOT COMPLETE 1,000 HOURS OF SERVICE DURING THE 12-MONTH PERIOD
BEGINNING ON THE DATE HIS EMPLOYMENT COMMENCED.
"(B) SEASONAL INDUSTRIES.--IN THE CASE OF ANY SEASONAL INDUSTRY
WHERE THE CUSTOMARY PERIOD OF EMPLOYMENT IS LESS THAN 1,000 HOURS
DURING A CALENDAR YEAR, THE TERM 'YEAR OF SERVICE' SHALL BE SUCH
PERIOD AS MAY BE DETERMINED UNDER REGULATIONS PRESCRIBED BY THE
SECRETARY OF LABOR.
"(C) HOURS OF SERVICE.--FOR PURPOSES OF THIS SUBSECTION, THE
TERM 'HOUR OF SERVICE' MEANS A TIME OF SERVICE DETERMINED UNDER
REGULATIONS PRESCRIBED BY THE SECRETARY OF LABOR.
"(D) MARITIME INDUSTRIES.--FOR PURPOSES OF THIS SUBSECTION, IN
THE CASE OF ANY MARITIME INDUSTRY, 125 DAY OF SERVICE SHALL BE
TREATED AS 1,000 HOURS OF SERVICE. THE SECRETARY OF LABOR MAY
PRESCRIBE REGULATIONS TO CARRY OUT THIS SUBPARAGRAPH.
"(4) TIME OF PARTICIPATION.--A PLAN SHALL BE TREATED AS NOT MEETING
THE REQUIREMENTS OF PARAGRAPH (1) UNLESS IT PROVIDES THAT ANY EMPLOYEE
WHO HAS SATISFIED THE MINIMUM AGE AND SERVICE REQUIREMENTS SPECIFIED IN
SUCH PARAGRAPH, AND WHO IS OTHERWISE ENTITLED TO PARTICIPATE IN THE
PLAN, COMMENCES PARTICIPATION IN THE PLAN NO LATER THAN THE EARLIER
OF--,
"(A) THE FIRST DAY OF THE FIRST PLAN YEAR BEGINNING AFTER THE
DATE ON WHICH SUCH EMPLOYEE SATISFIED SUCH REQUIREMENTS, OR
"(B) THE DATE 6 MONTHS AFTER THE DATE ON WHICH HE SATISFIED
SUCH REQUIREMENTS,
UNLESS SUCH EMPLOYEE WAS SEPARATED FROM THE SERVICE BEFORE THE DATE
REFERRED TO IN SUBPARAGRAPH (A) OR (B), WHICHEVER IS APPLICABLE.
"(5) BREAKS IN SERVICE.--,
"(A) GENERAL RULE.--EXCEPT AS OTHERWISE PROVIDED IN
SUBPARAGRAPHS (B), (C), AND (D), ALL YEARS OF SERVICE WITH THE
EMPLOYER OR EMPLOYERS MAINTAINING THE PLAN SHALL BE TAKEN INTO
ACCOUNT IN COM PUTING THE PERIOD OF SERVICE FOR PURPOSES OF
PARAGRAPH (1).
"(B) EMPLOYEES UNDER 3-YEAR 100 PERCENT VESTING.-- IN THE CASE
OF ANY EMPLOYEE WHO HAS ANY 1-YEAR BREAK IN SERVICE (AS DEFINED IN
SECTION 411(A) (6) (A) //POST, P. 901.// UNDER A PLAN TO WHICH THE
SERVICE REQUIREMENTS OF CLAUSE (I) OF PARAGRAPH (1) (B) APPLY, IF
SUCH EMPLOYEE HAS NOT SATISFIED SUCH REQUIREMENTS, SERVICE BEFORE
SUCH BREAK SHALL NOT BE REQUIRED TO BE TAKEN INTO ACCOUNT.
"(C) 1-YEAR BREAK IN SERVICE.--IN COMPUTING AN EMPLOYEE'S
PERIOD OF SERVICE FOR PURPOSES OF SUBSECTION (A) (1) IN THE CASE
OF ANY PARTICIPANT WHO HAS 1-YEAR BREAK IN SERVICE (AS DEFINED IN
IN SECTION 411(A) (6) (A)), SERVICE BEFORE SUCH BREAK SHALL NOT BE
REQUIRED TO BE TAKEN INTO ACCOUNT UNDER THE PLAN UNTIL HE HAS
COMPLETED A YEAR OF SERVICE (AS DEFINED IN PARAGRAPH (3) AFTER HIS
RETURN.
"(D) NONVESTED PARTICIPANTS.--IN THE CASE OF A PARTICIPANT WHO
DOES NOT HAVE ANY NONFORFEITABLE RIGHT TO AN ACCRUED BENEFIT
DERIVED FROM EMPLOYER CONTRIBUTIONS, YEARS OF SERVICE WITH THE
EMPLOYER OR EMPLOYERS MAINTAINING THE PLAN BEFORE A BREAK IN
SERVICE SHALL NOT BE REQUIRED TO BE TAKEN INTO ACCOUNT IN
COMPUTING THE PERIOD OF SERVICE FOR PURPOSES OF SUBSECTION (A) (1)
IF THE NUMBER OF CONSECUTIVE 1-YEAR BREAKS IN SERVICE EQUALS OR
EXCEEDS THE AGGREGATE NUMBER OF SUCH YEARS OF SERVICE BEFORE SUCH
BREAK. SUCH AGGREGATE NUMBER OF YEARS OF SERVICE BEFORE SUCH
BREAK SHALL BE DEEMED NOT TO INCLUDE ANY YEARS OF SERVICE NOT
REQUIRED TO BE TAKEN INTO ACCOUNT UNDER THIS SUBPARAGRAPH BY
REASON OF ANY PRIOR BREAK IN SERVICE.
"(B) ELIGIBILITY.--,
"(1) IN GENERAL.--A TRUST SHALL NOT CONSTITUTE A QUALIFIED
TRUST UNDER SECTION 401(A) //26 USC 401.// UNLESS THE TRUST, OR
TWO OR MORE TRUSTS, OR THE TRUST OR TRUSTS AND ANNUITY PLAN OR
PLANS ARE DESIGNATED BY THE EMPLOYER AS CONSTITUTING PARTS OF A
PLAN INTENDED TO QUALIFY UNDER SECTION 40!(A) WHICH BENEFITS
EITHER--,
"(A) 70 PERCENT OR MORE OF ALL EMPLOYEES, OR 80 PERCENT OR MORE
OF ALL THE EMPLOYEES WHO ARE ELIGIBLE TO BENEFIT UNDER THE PLAN IF
70 PERCENT OR MORE OF ALL THE EMPLOYEES ARE ELIGIBLE TO BENEFIT
UNDER THE PLAN, EXCLUDING IN EACH CASE EMPLOYEES WHO HAVE NOT
SATISFIED THE MINIMUM AGE AND SERVICE REQUIREMENTS IF ANY,
PRESCRIBED BY THE PLAN AS A CONDITION OF PARTICIPATION, OR
"(B) SUCH EMPLOYEES AS QUALIFY UNDER A CLASSIFICATION SET UP BY
THE EMPLOYER AND FOUND BY THE SECRETARY OR HIS DELEGATE NOT TO BE
DISCRIMINATORY IN FAVOR OF EMPLOYEES WHO ARE OFFICERS,
SHAREHOLDERS, OR HIGHLY COMPENSATED.
"(2) EXCLUSION OF CERTAIN EMPLOYEES.--FOR PURPOSES OF PARAGRAPH
(1), THERE SHALL BE EXCLUDED FROM CONSIDERATION--
"(A) EMPLOYEES NOT INCLUDED IN THE PLAN WHO ARE INCLUDED IN A
UNIT OF EMPLOYEES COVERED BY AN AGREEMENT WHICH THE SECRETARY OF
LABOR FINDS TO BE A COLLECTIVE BARGAINING AGREEMENT BETWEEN
EMPLOYEE REPRESENTATIVES AND ONE OR MORE EMPLOYERS, IF THERE IS
EVIDENCE THAT RETIREMENT BENEFITS WERE THE SUBJECT OF GOOD FAITH
BARGAINING BETWEEN SUCH EMPLOYEE REPRESENTATIVES AND SUCH EMPLOYER
OR EMPLOYERS,
"(B) IN THE CASE OF A TRUST ESTABLISHED OR MAINTAINED PURSUANT
TO AN AGREEMENT WHICH THE SECRETARY OF LABOR FINDS TO BE A
COLLECTIVE BARGAINING AGREEMENT BETWEEN AIR PILOTS REPRESENTED IN
ACCORDANCE WITH TITLE II OF THE RAILWAY LABOR ACT //45 USC 181.//
AND ONE OR MORE EMPLOYERS. ALL EMPLOYEES NOT COVERED BY SUCH
AGREEMENT, AND
"(C) EMPLOYEES WHO ARE NONRESIDENT ALIENS AND WHO RECEIVE NO
EARNED INCOME (WITHIN THE MEANING OF SECTION 911(B)) //26 USC
911.// FROM THE EMPLOYER WHICH CONSTITUTES INCOME FROM SOURCES
WITHIN THE UNITED STATES (WITHIN THE MEANING OF SECTION 861(A)
(3)). SUBPARAGRAPH (B) SHALL NOT APPLY IN THE CASE OF A PLAN
WHICH PROVIDES CONTRIBUTIONS OR BENEFITS FOR EMPLOYEES WHOSE
PRINCIPAL DUTIES ARE NOT CUSTOMARILY PERFORMED ABOARD AIRCRAFT IN
FLIGHT.
"(C) APPLICATION OF PARTICIPATION STANDARDS TO CERTAIN PLANS.--,
"(1) THE PROVISIONS OF THIS SECTION (OTHER THAN PARAGRAPH (2)
OF THIS SUBSECTION ) SHALL NOT APPLY TO--,
"(A) A GOVERNMENTAL PLAN (WITHIN THE MEANING OF SECTION 414(
D)),
"(B) A CHURCH PLAN (WITHIN THE MEANING OF SECTION 414(E)) WITH
RESPECT TO WHICH THE ELECTION PROVIDED BY SUBSECTION (D) OF THIS
SECTION HAS NOT BEEN MADE,
"(C) A PLAN WHICH HAS NOT AT ANY TIME AFTER THE DATE OF THE
ENACTMENT OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974
//ANTE, P. 829.// PROVIDED FOR EMPLOYER CONTRIBUTIONS, AND
"(D) A PLAN ESTABLISHED AND MAINTAINED BY A SOCIETY, ORDER, OR
ASSOCIATION DESCRIBED IN SECTION 501 (C) (8) OR (9) IF NO PART OF
THE CONTRIBUTIONS TO OR UNDER SUCH PLAN ARE MADE BY EMPLOYERS OF
PARTICIPANTS IN SUCH PLAN.
"(2) A PLAN DESCRIBED IN PARAGRAPH (1) SHALL BE TREATED AS
MEETING THE REQUIREMENTS OF THIS SECTION, FOR PURPOSES OF SECTION
401(A), IF SUCH PLAN MEETS THE REQUIREMENTS OF SECTION 401(A) (3)
AS IN EFFECT ON THE DAY BEFORE THE DATE OF THE ENACTMENT OF THIS
SECTION.
"(D) ELECTION BY CHURCH TO HAVE PARTICIPATION, VESTING, FUNDING,
ETC., PROVISIONS APPLY.--,
"(1) IN GENERAL.--IF THE CHURCH OR CONVENTION OR ASSOCIATION OF
CHURCHES WHICH MAINTAINS ANY CHURCH PLAN MAKES AN ELECTION UNDER
THIS SUBSECTION (IN SUCH FORM AND MANNER AS THE SECRETARY OR HIS
DELEGATE MAY BY REGULATIONS PRESCRIBE), THEN THE PROVISIONS OF
THIS TITLE RELATING TO PARTICAPATION, VESTING, FUNDING, ETC. (AS
IN EFFECT FROM TIME TO TIME) SHALL APPLY TO SUCH CHURCH PLAN AS IF
SUCH PROVISIONS DID NOT CONTAIN AN EXCLUSION FOR CHURCH PLANS.
"(2) ELECTION IRRECOCABLE.--AN ELECTION UNDER THIS SUBSECTION
WITH RESPECT TO ANY CHURCH PLAN SHALL BE BINDING WITH RESPECT TO
SUCH PLAN, AND, ONCE MADE, SHALL BE IRREVOCABLE."
SEC. 1012. MINIMUM VESTING STANDARDS.
(A) IN GENERAL.--SUBPART B OF PART I OF SUBCHAPTER D OF CHAPTER 1 IS
AMENDED BY ADDING AFTER SECTION 410 //ANTE, P. 898.// THE FOLLOWING NEW
SECTION:
"SEC. 411. MINIMUM VESTING STANDARDS.
"(A) GENERAL RULE.--A TRUST SHALL NOT CONSTITUTE A QUALIFIED TRUST
UNDER SECTION 401(A) UNLESS THE PLAN OF WHICH SUCH TRUST IS A PART
PROVIDES THAT AN EMPLOYEE'S RIGHT TO HIS NORMAL RETIREMENT BENEFIT IS
NONFORFEITABLE UPON THE ATTAINMENT OF NORMAL RETIREMENT AGE (AS DEFINED
IN SUBSECTION (A) (8) AND IN ADDITION SATISFIES THE REQUIREMENTS OF
PARAGRAPHS (1) AND (2) OF THIS SUBSECTION AND THE REQUIREMENTS OF
PARAGRAPH (2) OF SUBSECTION (B), AND IN THE CASE OF A DEFINED BENEFIT
PLAN, ALSO SATISFIES THE REQUIREMENTS OF PARAGRAPH (1) OF SUBSECTION
(B).
"(1) EMPLOYEE CONTRIBUTIONS.--A PLAN SATISFIES THE REQUIREMENTS
OF THIS PARAGRAPH IF AN EMPLOYEE'S RIGHTS IN HIS ACCRUED BENEFIT
DERIVED FROM HIS OWN CONTRIBUTIONS ARE NONFORFEITABLE.
"(2) EMPLOYER CONTRIBUTIONS.--A PLAN SATISFIES THE REQUIREMENTS
OF THIS PARAGRAPH IF IT SATISFIES THE REQUIREMENTS OF SUBPARAGRAPH
(A), (B), OR (C).
"(A) 10-YEAR VESTING.--A PLAN SATISFIES THE REQUIREMENTS OF
THIS SUBPARAGRAPH IF AN EMPLOYEE WHO HAS AT LEAST 10 YEARS OF
SERVICE HAS A NON-FORFEITABLE RIGHT TO 100 PERCENT OF HIS ACCRUED
BENEFIT DERIVED FROM EMPLOYER CONTRIBUTIONS.
"(B) 5- TO 15-YEAR VESTING.--A PLAN SATISFIES THE REQUIREMENTS
OF THIS SUBPARAGRAPH IF AN EMPLOYEE WHO HAS COMPLETED AT LEAST 5
YEARS OF SERVICE HAS A NONFORFEITABLE RIGHT TO A PERCENTAGE OF HIS
ACCRUED BENEFIT DERIVED FROM EMPLOYER CONTRIBUTIONS WHICH
PERCENTAGE IS NOT LESS THAN THE PERCENTAGE DETERMINED UNDER THE
FOLLOWING TABLE:
"(C) RULE OF 45.--
"(I) A PLAN SATISFIES THE REQUIREMENTS OF THIS SUBPARAGRAPH IF
AN EMPLOYEE WHO IS NOT SEPARATED FROM THE SERVICE, WHO HAS
COMPLETED AT LEAST 5 YEARS OF SERVICE, AND WITH RESPECT TO WHOM
THE SUM OF HIS AGE AND YEARS OF SERVICE EQUALS OR EXCEEDS 45, HAS
A NON-FORFEITABLE RIGHT TO A PERCENTAGE OF HIS ACCRUED BENEFIT
DERIVED FROM EMPLOYER CONTRIBUTIONS DETERMINED UNDER THE FOLLOWING
TABLE:
"(II) NOTWITHSTANDING CLAUSE (I), A PLAN SHALL NOT BE TREATED
AS SATISFYING THE REQUIREMENTS OF THIS SURPARAGRAPH UNLESS ANY
EMPLOYEE WHO HAS COMPLETED AT LEAST 10 YEARS OF SERVICE HAS A
NONFORFEITABLE RIGHT TO NOT LESS THAN 50 PERCENT OF HIS ACCRUED
BENEFIT DERIVED FROM EMPLOYER CONTRIBUTIONS AND TO NOT LESS THAN
AN ADDITIONAL 10 PERCENT FOR EACH ADDITIONAL YEAR OF SERVICE
THEREAFTER.
"(3) CERTAIN PERMITTED FORFEITURES, SUSPENSIONS, ETC.--, FOR
PURPOSES OF THIS SUBSECTION--,
"(A) FORFEITURE ON ACCOUNT OF DEATH.--A RIGHT TO AN ACCRUED
BENEFIT DERIVED FROM EMPLOYER CONTRIBUTIONS SHALL NOT BE TREATED
AS FORFEITABLE SOLELY BECAUSE THE PLAN PROVIDES THAT IT IS NOT
PAYABLE IF THE PARTICIPANT DIES (EXCEPT IN THE CASE OF A SURVIVOR
ANNUITY WHICH IS PAYABLE AS PROVIDED IN SECTION 401(A) (11)).
//POST, P. 935.//
"(B) SUSPENSION OF BENEFITS UPON REEMPLOYMENT OF RETIREE.--A
RIGHT TO AN ACCRUED BENEFIT DERIVED FROM EMPLOYER CONTRIBUTIONS
SHALL NOT BE TREATED AS FORFEITABLE SOLELY BECAUSE THE PLAN
PROVIDES THAT THE PAYMENT OF BENEFITS IS SUSPENDED FOR SUCH PERIOD
AS THE EMPLOYEE IS EMPLOYED, SUBSEQUENT TO THE COMMENCEMENT OF
PAYMENT OF SUCH BENEFITS--,
"(I) IN THE CASE OF A PLAN OTHER THAN A MULTIEMPLOYER WHICH
SUCH BENEFITS WERE BEING PAID; AND
"(II) IN THE CASE OF A MULTIEMPLOYER PLAN, IN THE SAME
INDUSTRY, THE SAME TRADE OR CRAFT, AND THE SAME GEOGRAPHIC AREA
COVERED BY THE PLAN AS WHEN SUCH BENEFITS COMMENCED. THE
SECRETARY OF LABOR SHALL PRESCRIBE SUCH REGULATIONS AS MAY BE
NECESSARY TO CARRY OUT THE PURPOSES OF THIS SUBPARAGRAPH,
INCLUDING REGULATIONS WITH RESPECT TO THE MEANING OF THE TERM
'EMPLOYED'.
"(C) EFFECT OF RETROACTIVE PLAN AMENDMENTS.--A RIGHT TO AN
ACCRUED BENEFIT DESCRIBED FROM EMPLOYER CONTRIBUTIONS SHALL NOT BE
TREATED AS FORFEITABLE SOLELY BECAUSE PLAN AMENDMENTS MAY BE GIVEN
RETROACTIVE APPLICATION AS PROVIDED IN SECTION 412 (C) (8).
//POST, P. 914.//
"(D) WITHDRAWAL OF MANDATORY CONTRIBUTION.--,
"(I) A RIGHT TO AN ACCRUED BENEFIT DERIVED FROM EMPLOYER
CONTRIBUTIONS SHALL NOT BE TREATED AS FORFEITABLE SOLELY BECAUSE
THE PLAN PROVIDES THAT, IN THE CASE OF A PARTICIPANT WHO DOES NOT
HAVE A NONFORFEITABLE RIGHT TO AT LEAST 50 PERCENT OF HIS ACCRUED
BENEFIT DERIVED FROM EMPLOYER CONTRIBUTIONS, SUCH ACCRUED BENEFIT
MAY BE FORFEITED ON ACCOUNT OF THE WITHDRAWAL BY THE PARTICIPANT
OF ANY AMOUNT ATTRIBUTABLE TO THE BENEFIT DERIVED FROM MANDATORY
CONTRIBUTIONS (AS DEFINED IN SUBSECTION (C) (2) (C)) MADE BY SUCH
PARTICIPANT.
"(II) CLAUSE (I) SHALL NOT APPLY TO A PLAN UNLESS THE PLAN
PROVIDES THAT ANY ACCRUED BENEFIT FORFEITED UNDER A PLAN PROVISION
DESCRIBED IN SUCH CLAUSE SHALL BE RESTORED UPON REPAYMENT BY THE
PARTICIPANT OF THE FULL AMOUNT OF THE WITHDRAWAL DESCRIBED IN SUCH
CLAUSE PLUS, IN THE CASE OF A DEFINED BENEFIT PLAN, INTEREST.
SUCH INTEREST SHALL BE COMPUTED ON SUCH AMOUNT AT THE RATE
DETERMINED FOR PURPOSES OF SUBSECTION (C) (2) (C) ON THE DATE OF
SUCH REPAYMENT (COMPUTED ANNUALLY FROM THE DATE OF SUCH
WITHDRAWAL). IN THE CASE OF A DEFINED CONTRIBUTION PLAN, THE PLAN
PROVISION REQUIRED UNDER THIS CLAUSE MAY PROVIDE THAT SUCH
REPAYMENT MUST BE MADE BEFORE THE PARTICIPANT HAS ANY ONE-YEAR
BREAK IN SERVICE COMMENCING AFTER THE WITHDRAWL.
"(III) IN THE CASE OF ACCRUED BENEFITS DERIVED FROM EMPLOYER
CONTRIBUTIONS WHICH ACCRUED, BEFORE THE DATE OF THE ENACTMENT OF
OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974 //ANTE, P.
829.// A RIGHT TO SUCH ACCRUED BENEFIT DERIVED FROM EMPLOYER
CONTRIBUTIONS SHALL NOT BE TREATED AS FORFEITABLE SOLELY BECAUSE
THE PLAN PROVIDES THAT AN AMOUNT OF SUCH ACCRUED BENEFIT MAY BE
FORFEITED ON ACCOUNT OF THE WITHDRAWAL BY THE PARTICIPANT OF AN
AMOUNT ATTRIBUTABLE TO THE BENEFIT DERIVED FROM MANDATORY
CONTRIBUTIONS (AS DEFINED IN SUBSECTION (C) (2) (C)) MADE BY SUCH
PARTICIPANT BEFORE THE DATE OF THE ENACTMENT OF THE ACT IF SUCH
AMOUNT FORFEITED IS PROPORTIONAL TO SUCH AMOUNT WITHDRAWN. THIS
CLAUSE SHALL NOT APPLY TO ANY PLAN TO WHICH ANY MANDATORY
CONTRIBUTION IS MADE AFTER THE DATE OF THE ENACTMENT OF SUCH ACT.
THE SECRETARY OR HIS DELEGATE SHALL PRESCRIBE SUCH REGULATIONS AS
MAY BE NECESSARY TO CARRY OUT THE PURPOSES OF THIS CLAUSE.
"(IV) FOR PURPOSES OF THIS SUBPARAGRAPH, IN THE CASE OF ANY
CLASS-YEAR PLAN, A WITHDRAWAL OF EMPLOYEE CONTRIBUTIONS SHALL BE
TREATED AS A WITHDRAWAL OF SUCH CONTRIBUTIONS ON A PLAN YEAR BY
PLAN YEAR BASIS IN SUCCEEDING ORDER OF TIME.
"(V) FOR NONFORFEITABILITY WHERE THE EMPLOYEE HAS A
NONFORFEITABLE RIGHT TO AT LEAST 50 PERCENT OF HIS ACCRUED
BENEFIT, SEE SECTION 401(A)(19).
"(4) SERVICE INCLUDED IN DETERMINATION OF NONFORFEITABLE
PERCENTAGE.--IN COMPUTING THE PERIOD OF SERVICE UNDER THE PLAN FOR
PURPOSES OF DETERMINING THE NONFORFEITABLE PERCENTAGE UNDER
PARAGRAPH (2), ALL O FAN EMPLOYEE'S YEARS OF SERVICE WITH THE
EMPLOYER OR EMPLOYERS MAINTAINING THE PLAN SHALL BE TAKEN INTO
ACCOUNT, EXCEPT THAT THE FOLLOWING MAY BE DISREGARDED:
"(A) YEARS OF SERVICE BEFORE AGE 22, EXCEPT THAT IN THE CASE OF
A PLAN WHICH DOES NOT SATISFY SUBPARAGRAPH (A) OR (B) OF PARAGRAPH
(2), THE PLAN MAY NOT DISREGARD ANY SUCH YEAR OF SERVICE DURING
WHICH THE EMPLOYEE WAS A PARTICIPANT;
"(B) YEARS OF SERVICE DURING A PERIOD FOR WHICH THE EMPLOYEE
DECLINED TO CONTRIBUTE TO A PLAN REQUIRING EMPLOYEE CONTRIBUTIONS;
"(C) YEARS OF SERVICE WITH AN EMPLOYER DURING ANY PERIOD FOR
WHICH THE EMPLOYER DID NOT MAINTAIN THE PLAN OR A PREDECESSOR PLAN
(AS DEFINED UNDER REGULATION PRESCRIBED BY THE SECRETARY OR HIS
DELEGATE);
"(D) SERVICE NOT REQUIRED TO BE TAKEN INTO ACCOUNT UNDER
PARAGRAPH (6);
"(E) YEARS OF SERVICE BEFORE JANUARY 1, 1971, UNLESS THE
EMPLOYEE HAS HAD AT LEAST 3 YEARS OF SERVICE AFTER DECEMBER 31,
1970; AND
"(F) YEARS OF SERVICE BEFORE THE FIRST PLAN YEAR TO WHICH THIS
SECTION APPLIES, IF SUCH SERVICE WOULD HAVE BEEN DISREGARDED UNDER
THE RULES OF THE PLAN WITH REGARD TO BREAKS IN SERVICE AS IN
EFFECT ON THE APPLICABLE DATE.
"(5) YEAR OF SERVICE.--,
"(A) GENERAL RULE,--FOR PURPOSES OF THIS SUBSECTION, EXCEPT AS
PROVIDED IN SUBPARAGRAPH (C), THE TERM 'YEAR OF SERVICE' MEANS A
CALENDER YEAR, PLAN YEAR, OR OTHER 12-CONSECUTIVE MONTH PERIOD
DESIGNATED BY THE PLAN (AND NOT PROHIBITED UNDER REGULATIONS
PRESCRIBED BY THE SECRETARY OF LABOR) DURING WHICH THE PARTICIPANT
HAS COMPLETED 1,000 HOURS OF SERVICE.
"(B) HOURS OF SERVICE.--FOR PURPOSES OF THIS SUBSECTION, THE
TERM 'HOURS OF SERVICE' HAS THE MEANING PROVIDED BY SECTION 410
(A) (3) (C). //ANTE, P. 898.//
"(C) SEASONAL INDUSTRIES.--IN THE CASE OF ANY SEASONAL INDUSTRY
WHERE THE CUSTOMARY PERIOD OF EMPLOYMENT IS LESS THAN 1,000 HOURS
DURING A CALENDAR YEAR, THE TERM 'YEAR OF SERVICE' SHALL BE SUCH
PERIOD AS MAY BE DETERMINE UNDER REGULATIONS PRESCRIBED BY THE
SECRETARY OF LABOR.
"(D) MARITIME INDUSTRIES.--FOR THE PURPOSES OF THIS SUBSECTION,
IN THE CASE OF ANY MARITIME INDUSTRY, 125 DAYS OF SERVICE SHALL BE
TREATED AS 1,000 HOURS TO SERVICE. THE SECRETARY OF LABOR MAY
PRESCRIBE REGULATIONS TO CARRY OUT THE PURPOSES OF THIS
SUBPARAGRAPH.
"(6) BREAKS IN SERVICE.--,
"(A) DEFINITION OF 1-YEAR BREAK IN SERVICE.--FOR PURPOSES OF OF
THIS PARAGRAPH, THE TERM '1-YEAR BREAK IN SERVICE' MEANS A
CALENDER YEAR, PLAN YEAR, OR OTHER 12-CONSECUTIVE-MONTH PERIOD
DESIGNATED BY THE PLAN (AND NOT PROHIBITED UNDER REGULATIONS
PRESCRIBED BY THE SECRETARY OF LABOR) DURING WHICH THE PARTICIPANT
HAS NOT COMPLETED MORE THAN 500 HOURS OF SERVICE.
"(B) 1 YEAR OF SERVICE AFTER 1-YEAR BREAK IN SERVICE.--FOR
PURPOSES OF PARAGRAPH (4), IN THE CASE OF ANY EMPLOYEE WHO HAS ANY
1-YEAR BREAK IN SERVICE, YEARS OF SERVICE BEFORE SUCH BREAK SHALL
NOT BE REQUIRED TO BE TAKEN INTO ACCOUNT UNTIL HE HAS COMPLETED A
YEAR OF SERVICE AFTER HIS RETURN.
"(C) 1-YEAR BREAK IN SERVICE UNDER DEFINED CONTRIBUTION
PLAN.--FOR PURPOSES OF PARAGRAPH (4), IN THE CASE OF ANY
PARTICIPANT IN A DEFINED CONTRIBUTION PLAN, OR AN INSURED DEFINED
BENEFIT PLAN WHICH SATISFIES THE REQUIREMENTS OF SUBSECTION (B)
(1) (F), WHO HAS ANY 1-YEAR BREAK IN SERVICE, YEARS OF SERVICE
AFTER SUCH BREAK SHALL NOT BE REQUIRED TO BE TAKEN INTO ACCOUNT
FOR PURPOSES OF DETERMINING THE NONFORFEITABLE PERCENTAGE OF HIS
ACCRUED BENEFIT DERIVED FROM EMPLOYER CONTRIBUTIONS WHICH ACCRUED
BEFORE SUCH BREAK.
"(D) NONVESTED PARTICIPANTS.--FOR PURPOSES OF PARAGRAPH (4).
IN THE CASE OF A PARTICIPANT WHO, UNDER THE PLAN, DOES NOT HAVE
ANY NONFORFEITABLE RIGHT TO AN ACCRUED BENEFIT DERIVED FROM
EMPLOYER CONTRIBUTIONS, YEARS OF SERVICE BEFORE ANY 1-YEAR BREAK
IN SERVICE SHALL NOT BE REQUIRED TO BE REQUIRED TO BE TAKEN INTO
ACCOUNT IF THE NUMBER OF CONSECUTIVE 1-YEAR BREAKS IN SERVICE
EQUALS OR EXCEEDS THE AGGREGATE NUMBER OF SUCH YEARS OF SERVICE
PRIOR TO SUCH BREAK. SUCH AGGREGATE NUMBER OF YEARS OF SERVICE
BEFORE SUCH BREAK SHALL BE DEEMED NOT TO INCLUDE ANY YEARS OF
SERVICE NOT REQUIRED TO BE TAKEN INTO ACCOUNT UNDER THIS
SUBPARAGRAPH BY REASON OF ANY PRIOR BREAK IN SERVICE.
"(7) ACCRUED BENEFIT.--,
"(A) IN GENERAL.--FOR PURPOSES OF THIS SECTION, THE TERM
'ACCRUED BENEFIT' MEANS--,
"(I) IN THE CASE OF A DEFINED BENEFIT PLAN, THE EMPLOYEE'S
ACCRUED BENEFIT DETERMINED UNDER THE PLAN AND, EXCEPT AS PROVIDED
IN SUBSECTION (C) (3), EXPRESSED IN THE FORM OF AN ANNUAL BENEFIT
COMMENCING AT NORMAL RETIREMENT AGE, OR
"(II) IN THE CASE OF A PLAN WHICH IS NOT A DEFINED BENEFIT
PLAN, THE BALANCE OF THE EMPLOYEE'S ACCOUNT.
"(B) EFFECT OF CERTAIN DISTRIBUTIONS.--NOTWITHSTANDING
PARAGRAPH (4), FOR PURPOSES OF DETERMINING THE EMPLOYEE'S ACCRUED
BENEFIT UNDER THE PLAN, THE PLAN MAY DISREGARD SERVICE PERFORMED
BY THE EMPLOYEE WITH RESPECT TO WHICH HE HAS RECEIVED--,
"(I) A DISTRIBUTION OF THE PRESENT VALUE OF HIS ENTIRE
NONFORFEITABLE BENEFIT IF SUCH DISTRIBUTION WAS IN AN AMOUNT (NOT
MORE THAN $1,750) PERMITTED UNDER REGULATIONS PRESCRIBED BY THE
SECRETARY OR HIS DELEGATE, FOR
"(II) A DISTRIBUTION OF THE PRESENT VALUE OF HIS NONFORFEITABLE
BENEFIT ATTRIBUTABLE TO SUCH SERVICE WHICH HE ELECTED TO RECEIVE.
CLAUSE (I) OF THIS SUBPARAGRAPH SHALL APPLY ONLY IF SUCH
DISTRIBUTION WAS MADE ON TERMINATION OF THE EMPLOYEE'S
PARTICIPATION IN THE PLAN. CLAUSE (II) OF THIS SUBPARAGRAPH SHALL
APPLY ONLY IF SUCH DISTRIBUTION IN THE PLAN OR UNDER SUCH OTHER
CIRCUMSTANCES AS MAY BE PROVIDED UNDER REGULATIONS PRESCRIBED BY
THE SECRETARY OR HIS DELEGATE.
"(C) REPAYMENT OF SUBPARAGRAPH (B) DISTRIBUTIONS.--FOR PURPOSES
OF DETERMINING THE EMPLOYEE'S ACCURED BENEFIT UNDER A PLAN, THE
PLAN MAY NOT DISREGARD SERVICE AS PROVIDED IN SUBPARAGRAPH (B)
UNLESS THE PLAN PROVIDES AN OPPORTUNITY FOR THE PARTICIPANT TO
REPAY THE FULL AMOUNT OF THE DISTRIBUTION DESCRIBED IN SUCH
SUBPARAGRAPH (B) WITH, IN THE CASE OF A DEFINED BENEFIT PLAN,
INTEREST AT THE RATE DETERMINED FOR PURPOSES OF SUBSECTION (C) (2)
(C) AND PROVIDES THAT UPON SUCH REPAYMENT THE EMPLOYEE'S ACCRUED
BENEFIT SHALL BE RECOMPUTED BY TAKING INTO ACCOUNT SERVICE SO
DISREGARDED. THIS SUBPARAGRAPH SHALL APPLY ONLY IN THE CASE OF A
PARTICIPANT WHO--,
"(I) RECEIVED SUCH A DISTRIBUTION IN ANY PLAN YEAR TO WHICH
THIS SECTION APPLIES, WHICH DISTRIBUTION WAS LESS THAN THE PRESENT
VALUE OF HIS ACCRUED BENEFIT,
"(II) RESUMES EMPLOYMENT COVERED UNDER THE PLAN, AND
"(III) REPAYS THE FULL AMOUNT OF SUCH DISTRIBUTION WITH, IN THE
CASE OF A DEFINED BENEFIT PLAN, INTEREST AT THE RATE DETERMINED
FOR PURPOSES OF SUBSECTION (C) (2) (C).
"(8) NORMAL RETIREMENT AGE.--FOR PURPOSES OF THIS SECTION, THE
TERM 'NORMAL RETIREMENT AGE' MEANS THE EARLIER OF--,
"(A) THE TIME A PLAN PARTICIPANT ATTAINS NORMAL RETIREMENT AGE
UNDER THE PLAN, OR
"(B) THE LATER OF--,
"(I) THE TIME A PLAN PARTICIPANT ATTAINS AGE 65, OR
"(II) THE 10TH ANNIVERSARY OF THE TIME A PLAN PARTICIPANT
COMMENCED PARTICIPATION IN THE PLAN.
"(9) NORMAL RETIREMENT BENEFIT.--FOR PURPOSES OF THIS SECTION,
THE TERM 'NORMAL RETIREMENT BENEFIT' MEANS THE GREATER OF THE
EARLY RETIREMENT BENEFIT UNDER THE PLAN, OR THE BENEFIT UNDER THE
PLAN COMMENCING AT NORMAL RETIREMENT AGE. THE NORMAL RETIREMENT
BENEFIT SHALL BE DETERMINED WITHOUT REGARD TO--,
"(A) MEDICAL BENEFITS, AND
"(B) DISABILITY BENEFITS NOT IN EXCESS OF THE QUALIFIED
DISABILITY BENEFIT. FOR PURPOSES OF THIS PARAGRAPH, A QUALIFIED
DISABILITY BENEFIT IS A DISABILITY BENEFIT PROVIDED BY A PLAN
WHICH DOES NOT EXCEED THE BENEFIT WHICH WOULD BE PROVIDED FOR THE
PARTICIPANT IF HE SEPARATED FROM THE SERVICE AT NORMAL RETIREMENT
AGE. FOR PURPOSES OF THIS PARAGRAPH, THE EARLY RETIREMENT BENEFIT
UNDER A PLAN SHALL BE DETERMINED WITHOUT REGARD TO ANY BENEFITS
COMMENCING BEFORE BENEFITS PAYABLE UNDER TITLE II OF THE SOCIAL
SECURITY ACT //42 USC 401.// BECOME PAYABLE WHICH--,
"(I) DO NOT EXCEED SUCH SOCIAL SECURITY BENEFITS, AND
"(II) TERMINATE WHEN SUCH SOCIAL SECURITY BENEFITS COMMENCE.
"(10) CHANGES IN VESTING SCHEDULE.--,
"(A) GENERAL RULE.--A PLAN AMENDMENT CHANGING ANY VESTING
SCHEDULE UNDER THE PLAN SHALL BE TREATED AS NOT SATISFYING THE
REQUIREMENT OF PARAGRAPH (2) IF THE NONFORFEITABLE PERCENTAGE OF
THE ACCRUED BENEFIT DERIVED FROM EMPLOYER CONTRIBUTIONS
(DETERMINED AS OF THE LATER OF THE DATE SUCH AMENDMENT IS ADOPTED,
OR THE DATE SUCH AMENDMENT BECOMES EFFECTIVE) OF ANY EMPLOYEE WHO
IS A PARTICIPANT IN THE PLAN IS LESS THAN SUCH NONFORFEITABLE
PERCENTAGE COMPUTED UNDER THE PLAN WITHOUT REGARD TO SUCH
AMENDMENT.
"(B) ELECTION OF FORMER SCHEDULE.--A PLAN AMENDMENT CHANGING
ANY VESTING SCHEDULE UNDER THE PLAN SHALL BE TREATED AS NOT
SATISFYING THE REQUIREMENTS OF PARAGRAPH (2) UNLESS EACH
PARTICIPANT HAVING NOT LESS THAN 5 YEARS OF SERVICE IS PERMITTED
TO ELECT, WITHIN A REASONABLE PERIOD AFTER THE ADOPTION OF SUCH
AMENDMENT, TO HAVE HIS NONFORFEITABLE PERCENTAGE COMPUTED UNDER
THE PLAN WITHOUT REGARD TO SUCH AMENDMENT.
"(B) ACCRUED BENEFIT REQUIREMENTS--,
(1) GENERAL RULES.--,
"(A) 3-PERCENT METHOD.--A DEFINED BENEFIT PLAN SATISFIES THE
REQUIREMENTS OF THIS PARAGRAPH IF THE ACCRUED BENEFIT TO WHICH
EACH PARTICIPANT IS ENTITLED UPON HIS SEPARATION FROM THE SERVICE
IS NOT LESS THAN--,
"(I) 3 PERCENT OF THE NORMAL RETIREMENT BENEFIT TO WHICH HE
WOULD BE ENTITLED IF HE COMMENCED PARTICIPATION AT THE EARLIEST
POSSIBLE ENTRY AGE UNDER THE PLAN AND SERVED CONTINUOUSLY UNTIL
THE EARLIER OF THE AGE 65 OR THE NORMAL RETIREMENT AGE SPECIFIED
UNDER THE PLAN, MULTIPLIED BY
"(II) THE NUMBER OF YEARS (NOT IN EXCESS OF 33 1/3) OF HIS
PARTICIPATION IN THE PLAN. IN THE CASE OF A PLAN PROVIDING
RETIREMENT BENEFITS BASED ON COMPENSATION DURING ANY PERIOD, THE
NORMAL RETIREMENT BENEFIT TO WHICH A PARTICIPANT WOULD BE ENTITLED
SHALL BE DETERMINED AS IF HE CONTINUED TO EARN ANNUALLY THE
AVERAGE RATE OF COMPENSATION WHICH HE EARNED DURING CONSECUTIVE
YEARS OF SERVICE, NOT IN EXCESS OF 10, FOR WHICH HIS COMPENSATION
WAS THE HIGHEST. FOR PURPOSES OF THIS SUBPARAGRAPH, SOCIAL
SECURITY BENEFITS AND ALL OTHER RELEVANT FACTORS USED TO COMPUTE
BENEFITS SHALL BE TREATED AS REMAINING CONSTANT AS OF THE CURRENT
YEAR FOR ALL YEARS AFTER SUCH CURRENT YEAR.
"(B) 133 1/3 PERCENT RULE.--A DEFINED BENEFIT PLAN SATISFIES
THE REQUIREMENTS OF THIS PARAGRAPH FOR A PARTICULAR PLAN YEAR IN
UNDER THE PLAN THE ACCRUED BENEFIT PAYABLE AT THE NORMAL
RETIREMENT AGE IS EQUAL TO THE NORMAL RETIREMENT BENEFIT AND THE
ANNUAL RATE AT WHICH ANY INDIVIDUAL WHO IS OR COULD BE A
PARTICIPANT CAN ACCRUE THE RETIREMENT BENEFITS PAYABLE AT NORMAL
RETIREMENT AGE UNDER THE PLAN FOR ANY LATER PLAN YEAR IS NOT MORE
THAN 133 1/3 PERCENT OF THE ANNUAL RATE AT WHICH HE CAN ACCRUE
BENEFITS FOR ANY PLAN YEAR BEGINNING ON OR AFTER SUCH PARTICULAR
PLAN YEAR AND BEFORE SUCH LATER PLAN YEAR. FOR PURPOSES OF THIS
SUBPARAGRAPH--,
"(I) ANY AMENDMENT TO THE PLAN WHICH IS IN EFFECT FOR THE
CURRENT YEAR SHALL BE TREATED AS IN EFFECT FOR ALL OTHER PLAN
YEARS;
"(II) ANY CHANGE IN AN ACCRUAL RATE WHICH DOES NOT APPLY TO ANY
INDIVIDUAL WHO IS OR COULD BE A PARTICIPANT IN THE CURRENT YEAR
SHALL BE DISREGARDED;
"(III) THE FACT THAT BENEFITS UNDER THE PLAN MAY BE PAYABLE TO
CERTAIN EMPLOYEES BEFORE NORMAL RETIREMENT AGE SHALL BE
DISREGARDED; AND
"(IV) SOCIAL SECURITY BENEFITS AND ALL OTHER RELEVANT FACTORS
USED TO COMPUTE BENEFITS SHALL BE TREATED AS REMAINING CONSTANT AS
OF THE CURRENT YEAR FOR ALL YEARS AFTER THE CURRENT YEAR.
"(C) FRACTIONAL RULE.--A DEFINED BENEFIT PLAN SATISFIES THE
REQUIREMENTS OF THIS PARAGRAPH IF THE ACCRUED BENEFIT TO WHICH ANY
PARTICIPANT IS ENTITLED UPON HIS SEPARATION FROM THE SERVICE IS
NOT LESS THAN A FRACTION OF THE ANNUAL BENEFIT COMMENCING AT
NORMAL RETIREMENT AGE TO WHICH HE WOULD BE ENTITLED UNDER THE PLAN
AS IN EFFECT ON THE DATE OF HIS SEPARATION IF HE CONTINUED TO EARN
ANNUALLY UNTIL NORMAL RETIREMENT AGE THE SAME RATE OF COMPENSATION
UPON WHICH HIS NORMAL RETIREMENT BENEFIT WOULD BE COMPUTED UNDER
THE PLAN, DETERMINED AS IF HE HAD ATTAINED NORMAL RETIREMENT AGE
ON THE DATE ON WHICH ANY SUCH DETERMINATION IS MADE (BUT TAKING
INTO ACCOUNT NO MORE THAN THE 10 YEARS OF SERVICE IMMEDIATELY
PRECEING HIS SEPARATION FROM SERVIE) AND THE DENOMINATOR OF WHICH
IS THE TOTAL NUMBER OF YEARS HE WOULD HAVE PARTICIPATED IN THE
PLAN IF HE SEPARATED FROM THE SERVICE AT THE NORMAL RETIREMENT
AGE. FOR PURPOSES OF THIS SUBPARAGRAPH, SOCIAL SECURITY BENEFITS
AND ALL OTHER RELEVANT FACTORS USED TO COMPUTE BENEFITS SHALL BE
TREATED AS REMAINING CONSTANT AS OF THE CURRENT YEAR FOR ALL YEARS
AFTER SUCH CURRENT YEAR.
"(D) ACCRUAL FOR SERVICE BEFORE EFFECTIVE DATE.--,
SUBPARAGRAPHS (A), (B), AND (C) SHALL NOT APPLY WITH RESPECT TO
YEARS OF PARTICIPATION BEFORE THE FIRST PLAN YEAR TO WHICH THIS
SECTION APPLIES, BUT A DEFINED BENEFIT PLAN SATISFIES THE
REQUIREMENTS OF THIS SUBPARAGRAPH WITH RESPECT TO SUCH YEARS OF
PARTICIPATION ONLY IF THE ACCRUED BENEFIT OF ANY PARTICIPANT WITH
RESPECT TO SUCH YEARS OF PARTICIPATION IS NOT LESS THAN THE
GREATER OF--,
"(I) HIS ACCRUED BENEFIT DETERMINED UNDER THE PLAN, AS IN
EFFECT FROM TIME TO TIME PRIOR TO THE DATE OF THE ENACTMENT OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, OR
"(II) AN ACCRUED BENEFIT TO WHICH SUCH PARTICIPANT WOULD HAVE
BEEN ENTITLED IF SUBPARAGRAPH (A), (B), OR (C) APPLIED WITH
RESPECT TO SUCH YEARS OF PARTICIPATION
"(E) FIRST TWO YEARS OF SERVICE SERVICE.--NOTWITHSTANDING
SUBPARAGRAPHS (A), (B), AND (C) OF THIS PARAGRAPH, A PLAN SHALL
NOT BE TREATED AS NOT SATISFYING THE REQUIREMENTS OF THIS
PARAGRAPH SOLELY BECAUSE THE ACCRUAL OF BENEFITS UNDER THE PLAN
DOES NOT BECOME EFFECTIVE UNTIL THE EMPLOYEE HAS TWO CONTINUOUS
YEARS OF SERVICE. FOR PURPOSES OF THIS SUBPARAGRAPH, THE TERM
'YEARS OF SERVICE' HAS THE MEANING PROVIDED BY SECTION 410(A) (3)
(A). //ANTE, P. 898.//
"(F) CERTAIN INSURED DEFINED BENEFIT PLANS.--NOTWITHSTANDING
SUBPARAGRAPHS (A), (B), AND (C), A DEFINED BENEFIT PLAN SATISFIES
THE REQUIREMENTS OF THIS PARAGRAPH IF SUCH PLAN--,
"(I) IS FUNDED EXCLUSIVELY BY THE PURCHASE OF INSURANCE
CONTRACTS, AND
"(II) SATISFIES THE REQUIREMENTS OF PARAGRAPHS (2) AND (3) OF
SECTION 412(I) //POST, P. 914.// (RELATING TO CERTAIN INSURANCE
CONTRACT PLANS), BUT ONLY IF AN EMPLOYEE'S ACCRUED BENEFIT AS OF
ANY APPLICABLE DATE IS NOT LESS THAN THE CASH SURRENDER VALUE HIS
INSURANCE CONTRACTS WOULD HAVE ON SUCH APPLICABLE DATE IF THE
REQUIREMENTS OF PARAGRAPHS (4), (5), AND (6) OF SECTION 412(I)
WERE SATISFIED.
"(G) ACCRUED BENEFIT MAY NOT DECREASE ON ACCOUNT OF INCREASING
AGE OR SERVICE.--NOTWITHSTANDING THE PRECEDING SUBPARAGRAPHS, A
DEFINED BENEFIT PLAN SHALL BE TREATED AS NOT SATISFYING THE
REQUIREMENTS OF THIS PARAGRAPH IF THE PARTICIPANT'S ACCRUED
BENEFIT IS REDUCED ON ACCOUNT OF ANY INCREASE IN HIS AGE OR
SERVICE. THE PRECEDING SENTENCE SHALL NOT APPLY TO BENEFITS UNDER
THE PLAN COMMENCING BEFORE ENTITLEMENT TO BENEFITS PAYABLE UNDER
TITLE II OF THE SOCIAL SECURITY ACT //42 USC 401.// WHICH BENEFITS
UNDER THE PLAN--,
"(I) DO NOT EXCEED SUCH SOCIAL SECURITY BENEFITS, AND
"(II) TERMINATE WHEN SUCH SOCIAL SECURITY BENEFITS COMMENCE.
(2) SEPARATE ACCOUNTING REQUIRED IN CERTAIN CASES.--A PLAN
SATISFIES THE REQUIREMENTS OF THIS PARAGRAPH IF--,
"(A) IN THE CASE OF A DEFINED BENEFIT PLAN, THE PLAN REQUIRES
SEPARATE ACCOUNTING FOR THE PORTION OF EACH EMPLOYEE'S ACCRED
BENEFIT DERIVED FROM ANY VOLUNTARY EMPLOYEE CONTRIBUTIONS
PERMITTED UNDER THE PLAN;
"(B) IN THE CASE OF ANY PLAN WHICH IS NOT A DEFINED BENEFIT
PLAN, THE PLAN REQUIRES SEPARATE ACCOUNTING FOR EACH EMPLOYEE'S
ACCRUED BENEFIT.
"(3) YEAR OF PARTICIPATION.--,
"(A) DEFINITION.--FOR PURPOSES OF DETERMINING AN EMPLOYEE'S
ACCRUED BENEFIT, THE TERM 'YEAR OF PARTICIPATION' MEANS A PERIOD
OF SERVICE (BEGINNING AT THE EARLIEST DATE ON WHICH THE EMPLOYEE
IS A PARTICIPANT IN THE PLAN AND WHICH IS INCLUDED IN A PERIOD OF
SERVICE REQUIRED TO BE TAKEN INTO ACCOUNT UNDER SECTION 410(A)
(5)) //ANTE, P. 898.// AS DETERMINED UNDER REGULATIONS PRESCRIBED
BY THE SECRETARY OF LABOR WHICH PROVIDE FOR THE CALCULATION OF
SUCH PERIOD ON ANY REASONABLE AND CONSISTENT BASIS.
"(B) LESS THAN FULL TIME SERVICE.--FOR PURPOSES OF THIS
PARAGRAPH, EXCEPT AS PROVIDED IN SUBPARAGRAPH (C), IN THE CASE OF
ANY EMPLOYEE WHOSE CUSTOMARY EMPLOYMENT IS LESS THAN FULL TIME,
THE CALCULATION OF SUCH EMPLOYEE'S SERVICE ON ANY BASIS WHICH
PROVIDES LESS THAN A RATABLE PORTION OF THE ACCRUED BENEFIT TO
WHICH HE WOULD BE ENTITLED UNDER THE PLAN IF HIS CUSTOMARY
EMPLOYMENT WERE FULL TIME SHALL NOT BE TREATED AS MADE ON A
REASONABLE AND CONSISTENT BASIS.
"(C) LESS THAN 1,000 HOURS OF SERVICE DURING YEAR.--FOR
PURPOSES OF THIS PARAGRAPH, IN THE CASE OF ANY EMPLOYEE WHOSE
SERVICE IS LESS THAN 1,000 HOURS DURING ANY CALENDAR YEAR, PLAN
YEAR OR OTHER 12-CONSECUTIVE MONTH PERIOD DESIGNATED BY THE PLAN
(AND NOT PROHIBITED UNDER REGULATIONS PRESCRIBED BY THE SECRETARY
OF LABOR) THE CALCULATION OF HIS PERIOD OF SERVICE SHALL NOT BE
TREATED AS NOT MADE ON A REASONABLE AND CONSISTENT BASIS SOLELY
BECAUSE SUCH SERVICE IS NOT TAKEN INTO ACCOUNT.
"(D) SEASONAL INDUSTRIES.--IN THE CASE OF ANY SEASONAL INDUSTRY
WHERE THE CUSTOMARY PERIOD OF EMPLOYMENT IS LESS THAN 1,000 HOURS
DURING A CALENDAR YEAR, THE TERM 'YEAR OF PARTICIPATION' SHALL BE
SUCH PERIOD AS DETERMINED UNDER REGULATIONS PRESCRIBED BY THE
SECRETARY OF LABOR.
"(E) MARITIME INDUSTRIES.--FOR PURPOSES OF THIS SUBSECTION, IN
THE CASE OF ANY MARITIME INDUSTRY, 125 DAYS OF SERVICE SHALL BE
TREATED AS A YEAR OF PARTICIPATION. THE SECRETARY OF LABOR MAY
PRESCRIBE REGULATIONS TO CARRY OUT THE PURPOSES OF THIS
SUBPARAGRAPH.
"(C) ALLOCATION OF ACCRUED BENEFITS BETWEEN EMPLOYER AND EMPLOYEE
CONTRIBUTIONS.--,
"(1) ACCRUED BENEFIT DERIVED FROM EMPLOYER CONTRIBUTIONS.-- FOR
PURPOSES OF THIS SECTION, AN EMPLOYEE'S ACCRUED BENEFIT DERIVED
FROM EMPLOYER CONTRIBUTIONS AS OF ANY APPLICABLE DATE IS THE
EXCESS, IF ANY, OF THE ACCRUED BENEFIT FOR SUCH EMPLOYEE AS OF
SUCH APPLICABLE DATE OVER THE ACCRUED BENEFIT DERIVED FROM
CONTRIBUTIONS MADE BY SUCH EMPLOYEE AS OF SUCH DATE.
"(2) ACCRUED BENEFIT DERIVED FROM EMPLOYEE CONTRIBUTIONS.--,
"(A) PLANS OTHER THAN DEFINED BENEFIT PLANS.--IN THE CASE OF A
PLAN OTHER THAN A DEFINED BENEFIT PLAN, THE ACCRUED BENEFIT
DERIVED FROM CONTRIBUTIONS MADE BY AN EMPLOYEE AS OF ANY
APPLICABLE DATE IS--,
"(I) EXCEPT AS PROVIDED IN CLAUSE (II), THE BALANCE OF THE
EMPLOYEE'S SEPARATE ACCOUNT CONSISTING ONLY OF HIS CONTRIBUTIONS
AND THE INCOME, EXPENSES, GAINS, AND LOSSES ATTRIBUTABLE THERETO,
OR
"(II) IF A SEPARATE ACCOUNT IS NOT MAINTAINED WITH RESPECT TO
AN EMPLOYEE'S CONTRIBUTIONS UNDER SUCH A PLAN, THE AMOUNT WHICH
BEARS THE SAME RATIO TO HIS TOTAL ACCRUED BENEFIT AS THE TOTAL
AMOUNT OF THE EMPLOYEE'S CONTRIBUTIONS (LESS WITHDRAWALS) BEARS TO
THE SUM OF SUCH CONTRIBUTIONS AND THE CONTRIBUTIONS ON HIS BEHALF
BY THE EMPLOYER (LESS WITHDRAWALS).
"(B) DEFINED BENEFIT PLANS.--,
"(I) IN GENERAL.--IN THE CASE OF A DEFINED BENEFIT PLAN
PROVIDING AN ANNUAL BENEFIT IN THE FORM OF A SINGLE LIFE ANNUITY
(WITHOUT ANCILLARY BENEFITS) COMMENCING AT NORMAL RETIREMENT AGE,
THE ACCRUED BENEFIT DERIVED FROM CONTRIBUTIONS MADE BY AN EMPLOYEE
AS OF ANY APPLICABLE DATE IS THE ANNUAL BENEFIT EQUAL TO THE
EMPLOYEE'S ACCUMULATED CONTRIBUTIONS MULTIPLIED BY THE APPROPRIATE
CONVERSION FACTOR.
"(II) APPROPRIATE CONVERSION FACTOR.--FOR PURPOSES OF THE
CLAUSE (I), THE TERM 'APPROPRIATE CONVERSION FACTOR' MEANS THE
FACTOR NECESSARY TO CONVERT AN AMOUNT EQUAL TO THE ACCUMULATED
CONTRIBUTIONS TO A SINGLE LIFE ANNUITY (WITHOUT ANCILLARY
BENEFITS) COMMENCING AT NORMAL RETIREMENT AGE AND SHALL BE 10
PERCENT FOR A NORMAL RETIREMENT AGE OF 65 YEARS. FOR OTHER NORMAL
RETIREMENT AGES THE CONVERSION FACTOR SHALL BE DETERMINED IN
ACCORDANCE WITH REGULATIONS PRESCRIBED BY THE SECRETARY OR HIS
DELEGATE.
"(C) DEFINITION OF ACCUMULATED CONTRIBUTIONS.--FOR PURPOSES OF
THIS SUBSECTION, THE TERM 'ACCUMULATED CONTRIBUTIONS' MEANS THE
TOTAL OF--,
"(I) ALL THE MANDATORY CONTRIBUTIONS MADE BY THE EMPLOYEE,
"(II) INTEREST (IF ANY) UNDER THE PLAN TO THE END OF THE LAST
PLAN YEAR TO WHICH SUBSECTION (A) (2) DOES NOT APPLY (BY REASON OF
THE APPLICABLE EFFECTIVE DATE), AND
"(III) INTEREST ON THE SUM OF THE AMOUNTS DETERMINED UNDER
CLAUSES (I) AND (II) COMPOUNDED ANNUALLY AT THE RATE OF 5 PERCENT
PER ANNUM FROM THE BEGINNING OF THE FIRST PLAN YEAR TO WHICH
SUBSECTION (A) (2) APPLIES (BY REASON OF THE APPLICABLE EFFECTIVE
DATE) TO THE DATE UPON WHICH THE EMPLOYEE WOULD ATTAIN NORMAL
RETIREMENT AGE. FOR PURPOSES OF THIS SUBPARAGRAPH, THE TERM
'MANDATORY CONTRIBUTIONS' MEANS AMOUNTS CONTRIBUTED TO THE PLAN BY
THE EMPLOYEE WHICH ARE REQUIRED AS A CONDITION OF EMPLOYMENT, AS A
CONDITION OF PARTICIPATION IN SUCH PLAN, OR AS A CONDITION OF
OBTAINING BENEFITS UNDER THE PLAN ATTRIBUTABLE TO EMPLOYER
CONTRIBUTIONS.
"(D) ADJUSTMENTS.--THE SECRETARY OR HIS DELEGATE IS AUTHORIZED
TO ADJUST BY REGULATION THE CONVERSION FACTOR DESCRIBED IN
SUBPARAGRAPH (B), THE RATE OF INTEREST DESCRIBED IN CLAUSE (III)
OF SUBPARAGRAPH (C), OR BOTH FROM TIME TO TIME AS HE MAY DEEM
NECESSARY. THE RATE OF INTEREST SHALL BEAR THE RELATIONSHIP TO 5
PERCENT WHICH THE SECRETARY OR HIS DELEGATE DETERMINES TO BE
COMPARABLE TO THE RELATIONSHIP WHICH THE LONG-TERM MONEY RATES AND
INVESTMENT YIELDS FOR THE LAST PERIOD OF 10 CALENDAR YEARS ENDING
AT LEAST 12 MONTHS BEFORE THE BEGINNING OF THE PLAN YEAR BEAR TO
THE LONG-TERM MONEY RATES AND INVESTMENT YIELDS FOR THE
10-CALENDAR YEAR PERIOD 1964 THROUGH 1973. NO SUCH ADJUSTMENT
SHALL BE EFFECTIVE FOR A PLAN YEAR BEGINNING BEFORE THE EXPIRATION
OF 1 YEAR AFTER SUCH ADJUSTMENT IS DETERMINED AND PUBLISHED.
"(E) LIMITATION.--THE ACCRUED BENEFIT DERIVED FROM EMPLOYEE
CONTRIBUTIONS SHALL NOT EXCEED THE GREATER OF--,
"(I) THE EMPLOYEE'S ACCRUED BENEFIT UNDER THE PLAN, OR
"(II) THE ACCRUED BENEFIT DERIVED FROM EMPLOYEE CONTRIBUTIONS
DETERMINED AS THOUGH THE AMOUNTS CALCULATED UNDER CLAUSES (II) AND
(III) OF SUBPARAGRAPH (C) WERE ZERO.
"(3) ACTUARIAL ADJUSTMENT.--FOR PURPOSES OF THIS SECTION, IN
THE CASE OF ANY DEFINED BENEFIT PLAN, IF AN EMPLOYEE'S ACCRUED
BENEFIT IS TO BE DETERMINED AS AN AMOUNT OTHER THAN AN ANNUAL
BENEFIT COMMENCING AT NORMAL RETIREMENT AGE, OR IF THE ACCRUED
BENEFIT DERIVED FROM CONTRIBUTIONS MADE BY AN EMPLOYEE IS TO BE
DETERMINED WITH RESPECT TO A BENEFIT OTHER THAN AN ANNUAL BENEFIT
IN THE FORM OF A SINGLE LIFE ANNUITY (WITHOUT ANCILLARY BENEFITS)
COMMENCING AT NORMAL RETIREMENT AGE, THE EMPLOYEE'S ACCRUED
BENEFIT, OR THE ACCRUED BENEFITS DERIVED FROM CONTRIBUTIONS MADE
BY AN EMPLOYEE, AS THE CASE MAY BE, SHALL BE THE ACTURIAL
EQUIVALENT OF SUCH BENEFIT OR AMOUNT DETERMINED UNDER PARAGRAPH
(1) OR (2).
"(D) SPECIAL RULES.--,
"(1) COORDINATION WITH SECTION 431(A) (4).--A PLAN WHICH
SATISFIES THE REQUIREMENTS OF THIS SECTION SHALL BE TREATED AS
SATISFYING ANY VESTING REQUIREMENTS RESULTING FROM THE APPLICATION
OF SECTION 401(A) (4) UNLESS--, //POST, P. 938.//
"(A) THERE HAS BEEN A PATTERN OF ABUSE UNDER THE PLAN (SUCH AS
A DISMISSAL OF EMPLOYEES BEFORE THEIR ACCRUED BENEFITS BECOME
NONFORFEITABLE) TENDING TO DISCRIMINATE IN FAVOR OF EMPLOYEES WHO
ARE OFFICERS, SHAREHOLDERS, OR HIGHLY COMPENSATED, OR
"(B) THERE HAVE BEEN, OR THERE IS REASON TO BELIEVE THERE WILL
BE, AN ACCRUAL OF BENEFITS OR FORFEITURES TENDING TO DISCRIMINATE
IN FAVOR OF EMPLOYEES WHO ARE OFFICERS, SHAREHOLDERS, OR HIGHLY
COMPENSATED.
"(2) PROHIBITED DISCRIMINATION.--SUBSECTION (A) SHALL NOT APPLY
TO BENEFITS WHICH MAY NOT BE PROVIDED FOR DESIGNATED EMPLOYEES IN
THE EVENT OF EARLY TERMINATION OF THE PLAN UNDER PROVISIONS OF THE
PLAN ADOPTED PURSUANT TO REGULATIONS PRESCRIBED BY THE SECRETARY
OR HIS DELEGATE TO PRECLUDE THE DISCRIMINATION PROHIBITED BY
SECTION 431(A) (4). //POST, P. 938.//
"(3) TERMINATION OR PARTIAL TERMINATION; DISCONTINUANCE OF
CONTRIBUTIONS.--NOTWITHSTANDING THE PROVISIONS OF SUBSECTION (A),
A TRUST SHALL NOT CONSTITUTE A QUALIFIED TRUST UNDER SECTION 401
(A) UNLESS THE PLAN OF WHICH SUCH TRUST IS A PART PROVIDES THAT--
"(A) UPON ITS TERMINATION OR PARTIAL TERMINATION, OR
"(B) IN THE CASE OF A PLAN TO WHICH SECTION 412 //POST, P.
914.// DOES NOT APPLY, UPON COMPLETE DISCONTINUANCE OF
CONTRIBUTIONS UNDER THE PLAN, THE RIGHTS OF ALL AFFECTED EMPLOYEES
TO BENEFITS ACCRUED TO THE DATE OF SUCH TERMINATION, PARTIAL
TERMINATION, OR DISCONTINUANCE, TO THE EXTENT FUNDED AS OF SUCH
DATE, OR THE AMOUNTS CREDITED TO THE EMPLOYEE' ACCOUNTS, ARE
NONFORFEITABLE. THIS PARAGRAPH SHALL NOT APPLY TO BENEFITS OR
CONTRIBUTIONS WHICH, UNDER PROVISIONS OF THE PLAN ADOPTED PURSUANT
TO REGULATIONS PRESCRIBED BY THE SECRETARY OR HIS DELEGATE TO
PRECLUDE THE DISCRIMINATION PROHIBITED BY SECTION 401(A) (4), MAY
NOT BE USED FOR DESIGNATED EMPLOYEES IN THE EVENT OF EARLY
TERMINATION OF THE PLAN.
"(4) CLASS YEAR PLANS.--THE REQUIREMENTS OF SUBSECTION (A) (2)
SHALL BE DEEMED TO BE SATISFIED IN THE CASE OF A CLASS YEAR PLAN
IF SUCH PLAN PROVIDES THAT 100 PERCENT OF EACH EMPLOYEE'S RIGHT TO
OR DERIVED FROM THE CONTRIBUTIONS OF THE EMPLOYER ON HIS BEHALF
WITH RESPECT TO ANY PLAN YEAR ARE NONFORFEITABLE NOT LATER THAN
THE END OF THE 5TH PLAN YEAR FOLLOWING THE PLAN YEAR FOR WHICH
SUCH CONTRIBUTIONS WERE MADE. FOR PURPOSES OF THIS SECTION, THE
TERM 'CLASS YEAR PLAN' MEANS A PROFIT-SHARING, STOCK BONUS, OR
MONEY PURCHASE PLAN WHICH PROVIDES FOR THE SEPARATE
NONFORFEITABILITY OF EMPLOYEES' RIGHTS TO OR DERIVED FROM THE
CONTRIBUTIONS FOR EACH PLAN YEAR.
"(5) TREATMENT OF VOLUNTARY EMPLOYEE CONTRIBUTIONS.--IN THE
CASE OF A DEFINED BENEFIT PLAN WHICH PERMITS VOLUNTARY EMPLOYEE
CONTRIBUTIONS, THE PORTION OF AN EMPLOYEE'S ACCRUED BENEFIT
DERIVED FROM SUCH CONTRIBUTIONS SHALL BE TREATED AS AN ACCRUED
BENEFIT DERIVED FROM EMPLOYEE CONTRIBUTIONS UNDER A PLAN OTHER
THAN A DEFINED BENEFIT PLAN.
"(6) ACCRUED BENEFIT NOT TO BE DECREASED BY AMENDMENT.--A PLAN
SHALL BE TREATED AS NOT SATISFYING THE REQUIREMENTS OF THIS
SECTION IF THE ACCRUED BENEFIT OF A PARTICIPANT IS DECREASED BY AN
AMENDMENT OF THE PLAN, OTHER THAN AN AMENDMENT DESCRIBED IN
SECTION 412(C) (8).
"(E) APPLICATION OF VESTING STANDARDS TO CERTAIN PLANS.--,
"(1) THE PROVISIONS OF THIS SECTION (OTHER THAN PARAGRAPH (2)
SHALL NOT APPLY TO--,
"(A) A GOVERNMENTAL PLAN (WITHIN THE MEANING OF SECTION 414
(D)), //POST, P. 925.//
"(B) A CHURCH PLAN (WITHIN THE MEANING OF SECTION 414(E)) WITH
WITH RESPECT TO WHICH THE ELECTION PROVIDED BY SECTION 410(D) HAS
NOT BEEN MADE, //ANTE, P. 898.//
"(C) A PLAN WHICH HAS NOT, AT ANY TIME AFTER THE DATE OF THE
ENACTMENT OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
//ANTE, P. 829.// PROVIDED FOR EMPLOYER CONTRIBUTIONS, AND
"(D) A PLAN ESTABLISHED AND MAINTAINED BY A SOCIETY, ORDER, OR
ASSOCIATION DESCRIBED IN SECTION 501(C) (8) OR (9), //26 USC
501.// IF NO PART OF THE CONTRIBUTIONS TO OR UNDER SUCH PLAN ARE
MADE BY EMPLOYERS OF PARTICIPANTS IN SUCH PLAN.
"(2) A PLAN DESCRIBED PARAGRAPH (1) SHALL BE TREATED AS MEETING
THE REQUIREMENTS OF THIS SECTION, FOR PURPOSES OF SECTION 401(A),
IF SUCH PLAN MEETS THE VESTING REQUIREMENTS RESULTING FROM THE
APPLICATION OF SECTION 401(A) (4) AND 401(A) (7) //POST, P. 938.//
AS IN EFFECT ON THE DAY BEFORE THE DATE OF THE ENACTMENT OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974."
(B) COMPARABILITY OF PLAN.--SECTION 401(A) (RELATING TO REQUIREMENTS
FOR QUALIFICATION) IS AMENDED BY ADDING AT THE END OF PARAGRAPH (5) THE
FOLLOWING: "FOR PURPOSES OF DETERMINING WHETHER TWO OR MORE PLANS OF AN
EMPLOYER SATISFY THE REQUIREMENTS OF PARAGRAPH (4) WHEN CONSIDERED AS A
SINGLE PLAN, IF THE AMOUNT OF CONTRIBUTIONS ON BEHALF OF THE EMPLOYEES
ALLOWED AS A DEDUCTION UNDER SECTION 404 FOR THE TAXABLE YEAR WITH
RESPECT TO SUCH PLANS, TAKEN TOGETHER, BEARS A UNIFORM RELATIONSHIP TO
THE TOTAL COMPENSATION, OR THE BASIC OR REGULAR RATE OF COMPENSATION, OF
SUCH EMPLOYEES, THE PLANS SHALL NOT BE CONSIDERED DISCRIMINATORY MERELY
BECAUSE THE RIGHTS OF EMPLOYEES TO, OR DERIVED FROM, THE EMPLOYER
CONTRIBUTIONS UNDER THE SEPARATE PLANS DO NOT BECOME NONFORFEITABLE AT
THE SAME RATE. FOR THE PURPOSES OF DETERMINING WHITHER TWO OR MORE
PLANS OF AN EMPLOYER SATISFY THE REQUIREMENTS OF PARAGRAPH (4) WHEN
CONSIDERED AS A SINGLE PLAN, IF THE EMPLOYEES' RIGHTS TO BENEFITS UNDER
THE SEPARATE PLANS DO NOT BECOME NONFORFEITABLE AT THE SAME RATE, BUT
THE LEVELS OF BENEFITS PROVIDED BY THE SEPARATE PLANS SATISFY THE
REQUIREMENTS OF REGULATIONS PRESCRIBED BY THE SECRETARY OR HIS DELEGATE
TO TAKE ACCOUNT OF THE DIFFERENCES IN SUCH RATES, THE PLANS SHALL NOT BE
CONSIDERED DISCRIMINATORY MERELY BECAUSE OF THE DIFFERENCE IN SUCH
RATES."
(C) VARIATIONS FROM CERTAIN VESTING AND ACCRUED BENEFITS
REQUIREMENTS.-- //26 USC 411 NOTE.// IN THE CASE OF ANY PLAN MAINTAINED
ON JANUARY 1, 1974, IF, NOT LATER THAN 2 YEARS AFTER THE DATE OF
ENACTMENT OF THIS ACT, THE PLAN ADMINSTRATOR PETITIONS THE SECRETARY OF
LABOR, THE SECRETARY OF LABOR MAY PRESCRIBE AN ALTERNATE METHOD WHICH
SHALL BE TREATED AS SATISFYING THE REQUIREMENTS OF SUBSECTION (A) (2) OF
SECTION 411 OF THE INTERNAL REVENUE CODE OF 1954, OR OF SUBSECTION (B)
(1) //ANTE, P. 901.// (OTHER THAN SUBPARAGRAPH (D) THEREOF) OF SUCH
SECTION 411, OR OF BOTH SUCH PROVISIONS FOR A PERIOD OF NOT MORE THAN 4
YEARS. THE SECRETARY MAY PRESCRIBE SUCH ALTERNATE METHOD ONLY WHEN HE
FINDS THAT--,
(1) THE APPLICATION OF SUCH REQUIREMENTS WOULD INCREASE THE
COSTS OF THE PLAN TO SUCH AN EXTENT THAT THERE WOULD RESULT A
SUBSTANTIAL RISK TO THE VOLUNTARY CONTINUATION OF THE PLAN OR A
SUBSTANTIAL CURTAILMENT OF BENEFIT LEVELS OR THE LEVELS OF
EMPLOYEES' COMPENSATION,
(2) THE APPLICATION OF SUCH REQUIREMENTS OR DISCONTINUANCE OF
THE PLAN WOULD BE ADVERSE TO THE INTERESTS OF PLAN PARTICIPANTS IN
THE AGGREGATE, AND
(3) A WAIVER OR EXTENSION OF TIME GRANTED UNDER SECTION 412(D)
OR (E) WOULD BE INADEQUATE. //POST, P. 914.//
IN THE CASE OF ANY PLAN WITH RESPECT TO WHICH AN ALTERNATE METHOD HAS
BEEN PRESCRIBED UNDER THE PRECEDING PROVISIONS OF THIS SUBSECTION FOR A
PERIOD OF NOT MORE THAN 4 YEARS, IF, NOT LATER THAN 1 YEAR BEFORE THE
EXPIRATION OF SUCH PERIOD, THE PLAN ADMINISTRATOR PETITIONS THE
SECRETARY OF LABOR FOR AN EXTENSION OF SUCH ALTERNATE METHOD, AND THE
SECRETARY MAKES THE FINDINGS REQUIRED BY THE PRECEDING SENTENCE, SUCH
ALTERNATE METHOD MAY BE EXTENDED FOR NOT MORE THAN 3 YEARS.
(A) IN GENERAL.--SUBPART B OF PART I OF SUBCHAPTER D OF CHAPTER 1
//ANTE, P. 901.// IS AMENDED BY ADDING AFTER SECTION 411 THE FOLLOWING
NEW SECTION:
"(A) GENERAL RULE.--EXCEPT AS PROVIDED IN SUBSECTION (H), THIS
SECTION APPLIES TO A PLAN IF, FOR ANY PLAN YEAR BEGINNING ON OR AFTER
THE EFFECTIVE DATE OF THIS SECTION FOR SUCH PLAN--,
"(1) SUCH PLAN INCLUDED A TRUST WHICH QUALIFIED (OR WAS
DETERMINED BY THE SECRETARY OR HIS DELEGATE TO HAVE QUALIFIED)
UNDER SECTION 401(A), //26 USC 401.// OR
"(2) SUCH PLAN SATISFIED (OR WAS DETERMINED BY THE SECRETARY OR
HIS DELEGATE TH HAVE SATISFIED)THE REQUIREMENTS OF SECTION 403 (A)
OR 405(A). //POST PP. 969, 991.//
A PLAN TO WHICH THIS SECTION APPLIES SHALL HAVE SATISFIED THE MINIMUM
FUNDING STANDARD FOR SUCH PLAN FOR A PLAN YEAR IF AS OF THE END OF SUCH
PLAN YEAR, THE PLAN DOES NOT HAVE AN ACCUMULATED FUNDING DEFICIENCY.
//26 USC 405.// FOR PURPOSES OF THIS SECTION AND SECTION 4971, //POST,
P. 920.// THE TERM 'ACCUMULATED FUNDING DEFICIENCY' MEANS FOR ANY PLAN
THE EXCESS OF THE TOTAL CHARGES TO THE FUNDING STANDARD ACCOUNT FOR ALL
PLAN YEARS (BEGINNING WITH THE FIRST PLAN YEAR TO WHICH THIS SECTION
APPLIES) OVER THE TOTAL CREDITS TO SUCH ACCOUNT FOR SUCH YEARS OR, IF
LESS, THE EXCESS OF THE TOTAL CHARGES TO THE ALTERNATIVE MINIMUM FUNDING
STANDARD ACCOUNT FOR SUCH PLAN YEARS OVER THE TOTAL CREDITS TO SUCH
ACCOUNT FOR SUCH YEARS.
"(B) FUNDING STANDARDS ACCOUNT.--,
"(1) ACCOUNT REQUIRED.--EACH PLAN TO WHICH THIS SECTION APPLIES
SHALL ESTABLISH AND MAINTAIN A FUNDING STANDARD ACCOUNT. SUCH
ACCOUNT SHALL BE CREDITED AND CHARGED SOLELY AS PROVIDED IN THIS
SECTION.
"(2) CHARGES TO ACCOUNT.--FOR A PLAN YEAR, THE FUNDING STANDARD
ACCOUNT SHALL BE CHARGED WITH THE SUM OF--,
"(A) THE NORMAL COST OF THE PLAN FOR THE PLAN YEAR,
"(B) THE AMOUNTS NECESSARY TO AMORTIZE IN EQUAL ANNUAL
INSTALLMENTS (UNTIL FULLY AMORTIZED)--,
"(I) IN THE CASE OF A PLAN IN EXISTENCE ON JANUARY 1, 1974, THE
UNFUNDED PAST SERVICE LIABILITY UNDER THE PLAN ON THE FIRST DAY OF
THE FIRST PLAN YEAR TO WHICH THIS SECTION APPLIES, OVER A PERIOD
OF 40 PLAN YEARS,
"(II) IN THE CASE OF A PLAN WHICH COMES INTO EXISTENCE AFTER
JANUARY 1, 1974, THE UNFUNDED PAST SERVICE LIABILITY UNDER THE
PLAN ON THE FIRST DAY OF THE FIRST PLAN YEAR TO WHICH THIS SECTION
APPLIES, OVER A PERIOD OF 30 PLAN YEARS (40 PLAN YEARS IN THE CASE
OF A MULTIEMPLOYER PLAN),
"(III) SEPARATELY, WITH RESPECT TO EACH PLAN YEAR, THE NET
INCREASE (IF ANY) IN UNFUNDED PAST SERVICE LIABILITY UNDER THE
PLAN ARISING FROM PLAN AMENDMENTS ADOPTED IN SUCH YEAR, OVER A
PERIOD OF 30 PLAN YEARS (40 PLAN YEARS IN THE CASE OF A
MULTIEMPLOYER PLAN),
"(IV) SEPARATELY, WITH RESPECT TO EACH PLAN YEAR, THE NET
EXPERIENCE LOSS (IF ANY) UNDER THE PLAN, OVER A PERIOD OF 15 PLAN
YEARS (20 PLAN YEARS IN THE CASE OF A MULTIEMPLOYER PLAN), AND
"(V) SEPARATELY, WITH RESPECT TO EACH PLAN YEAR, THE NET LOSS
(IF ANY) RESULTING FROM CHANGES IN ACTUARIAL ASSUMPTIONS USED
UNDER THE PLAN, OVER A PERIOD OF 30 PLAN YEARS,
"(C) THE AMOUNT NECESSARY TO AMORTIZE EACH WAIVED FUNDING
DEFICIENCY (WITHIN THE MEANING OF SUBSECTION (D) (3)) FOR EACH
PRIOR PLAN YEAR IN EQUAL ANNUAL INSTALLMENTS (UNTIL FULLY
AMORTIZED) OVER A PERIOD OF 15 PLAN YEARS, AND
"(D) THE AMOUNT NECESSARY TO AMORTIZE IN EQUAL ANNUAL
INSTALLMENTS (UNTIL FULLY AMORTIZED) OVER A PERIOD OF 5 PLAN YEARS
ANY AMOUNT CREDITED TO THE FUNDING STANDARD ACCOUNT UNDER
PARAGRAPH (3) (D).
"(3) CREDITS TO ACCOUNT.--FOR A PLAN YEAR, THE FUNDING STANDARD
ACCOUNT SHALL BE CREDITED WITH THE SUM OF--,
"(A) THE AMOUNT CONSIDERED CONTRIBUTED BY THE EMPLOYER TO OR
UNDER THE PLAN FOR THE PLAN FOR THE PLAN YEAR,
"(B) THE AMOUNT NECESSARY TO AMORTIZE IN EQUAL ANNUAL
INSTALLMENTS (UNTIL FULLY AMORTIZED)--,
"(I) SEPARATELY, WITH RESPECT TO EACH PLAN YEAR, NET DECREASE
(IF ANY) IN UNFUNDED PAST SERVICE LIABILITY UNDER THE PLAN ARISING
FROM PLAN AMENDMENTS ADOPTED IN SUCH YEAR, OVER A PERIOD OF 30
PLAN YEARS (40 PLAN YEARS IN THE CASE OF A MULTIEMPLOYER PLAN),
"(II) SEPARATELY, WITH RESPECT TO EACH PLAN YEAR, THE NET
EXPERIENCE GAIN (IF ANY) UNDER THE PLAN, OVER A PERIOD OF 15 PLAN
YEARS (20 PLAN YEARS IN THE CASE OF A MULTIEMPLOYER PLAN), AND
"(III) SEPARATELY, WITH RESPECT TO EACH PLAN YEAR, THE NET GAIN
(IF ANY) RESULTING FROM CHANGES IN ACTUARIAL ASSUMPTIONS USED
UNDER THE PLAN, OVER A PERIOD OF 30 PLAN YEARS,
"(C) THE AMOUNT OF THE WAIVED FUNDING DEFICIENCY WITHIN THE
MEANING OF SUBSECTION (D) (3) FOR THE PLAN YEAR, AND
"(D) IN THE CASE OF A PLAN YEAR FOR WHICH THE ACCUMULATED
FUNDING DEFICIENCY IS DETERMINED UNDER THE FUNDING STANDARD
ACCOUNT IF SUCH PLAN YEAR FOLLOWS A PLAN YEAR FOR WHICH SUCH
DEFICIENCY WAS DETERMINED UNDER THE ALTERNATIVE MINIMUM FUNDING
STANDARD, THE EXCESS, (IF ANY) OF ANY DEBIT BALANCE IN THE FUNDING
STANDARD ACCOUNT (DETERMINED WITHOUT REGARD TO THIS SUBPARAGRAPH)
OVER ANY DEBIT BALANCE IN THE ALTERNATIVE MINIMUM FUNDING STANDARD
ACCOUNT.
(4) COMBINING AND OFFSETTING AMOUNTS TO BE AMORTIZED.--, UNDER
REGULATIONS PRESCRIBED BY TE SECRETARY OR HIS DELEGATE, AMOUNTS
REQUIRED TO BE AMORTIZED UNDER PARAGRAPH (2) OR PARAGRAPH (3), AS
THE CASE MAY BE--,
"(A) MAY BE COMBINED INTO ONE AMOUNT UNDER SUCH PARAGRAPH TO BE
AMORTIZED OVER A PERIOD DETERMINED ON THE BASIS OF THE REMAINING
AMORTIZATION PERIOD FOR ALL ITEMS ENTERING INTO SUCH COMBINED
AMOUNT, AND
"(B) MAY BE OFFSET AGAINST AMOUNTS REQUIRED TO BE AMORTIZED
UNDER THE OTHER SUCH PARAGRAPH, WITH THE RESULTING AMOUNT TO BE
AMORTIZED OVER A PERIOD DETERMINED ON THE BASIS OF THE REMAINING
AMORTIZATION PERIODS FOR ALL ITEMS ENTERING INTO WHICHEVER OF THE
TWO AMOUNTS BEING OFFSET IS THE GREATER.
(5) INTEREST.--THE FUNDING STANDARD ACCOUNT (AND ITEMS THEREIN)
SHALL BE CHARGED OR CREDITED (AS DETERMINED UNDER REGULATIONS
PRESCRIBED THE SECRETARY OR HIS DELEGATE) WITH INTEREST AT THE
APPROPRIATE RATE CONSISTENT WITH THE RATE OR RATES OF INTEREST
USED UNDER THE PLAN TO DETERMINE COSTS.
"(C) SPECIAL RULES.--,
"(1) DETERMINATIONS TO BE MADE UNDER FUNDING METHOD.-- FOR
PURPOSES OF THIS SECTION, NORMAL COSTS, ACCRUED TO DETERMINE COSTS
UNDER THE PLAN.
"(2) VALUATION OF ASSETS.--,
"(A) IN GENERAL.--FOR PURPOSES OF THIS SECTION, THE VALUE OF
THE PLAN'S ASSETS SHALL BE DETERMINED ON THE BASIS OF ANY
REASONABLE ACTUARIAL METHOD OF VALUATION WHICH TAKES INTO ACCOUNT
FAIR MARKET VALUE AND WHICH IS PERMITTED UNDER REGULATIONS
PRESCRIBED BY THE SECRETARY OR HIS DELEGATE.
"(B) ELECTION WITH RESPECT TO BONDS.--THE VALUE OF A BOND OR
OTHER EVIDENCE OF INDEBTEDNESS WHICH IS NOT IN DEFAULT AS TO
PRINCIPAL OR INTEREST MAY, AT THE ELECTION OF THE PLAN
ADMINISTRATOR, BE DETERMINED ON AN AMORTIZED BASIS RUNNING FROM
INITIAL COST AT PURCHASE TO PAR VALUE AT MATURITY OR EARLIEST CALL
DATE. ANY ELECTION UNDER THIS SUBPARAGRAPH SHALL BE MADE AT SUCH
TIME AND IN SUCH MANNER AS THE SECRETARY SHALL BY REGULATIONS
PROVIDE, SHALL APPLY TO ALL SUCH EVIDENCES OF INDEBEDNESS, AND MAY
BE REVOKED ONLY WITH THE CONSENT OF SECRETARY OR HIS DELEGATE.
"(3) ACTUARIAL ASSUMPTION MUST BE REASONABLE.--FOR PURPOSES OF
THIS SECTION, ALL COSTS, LIABILITIES, RATES OF INTERESTS, AND
OTHER FACTORS UNDER THE PLAN SHALL BE DETERMINED ON THE BASIS OF
ACTUARIAL ASSUMPTIONS AND METHODS WHICH, IN THE AGGREGATE, ARE
REASONABLE (TAKING INTO ACCOUNT THE EXPERIENCE OF THE PLAN AND
REASONABLE EXPECTATIONS) AND WHICH, IN COMBINATION, OFFER THE
ACTUARY'S BEST ESTIMATE OF ANTICIPATED EXPERIENCE UNDER THE PLAN.
"(4) TREATMENT OF CERTAIN CHANGES AS EXPERIENCE GAIN OR
LOSS.--FOR PURPOSES OF THIS SECTION, IF--,
"(A) A CHANGE IN BENEFITS UNDER THE SOCIAL SECURITY ACT //42
USC 1305.// OR IN OTHER RETIREMENT BENEFITS CREATED UNDER FEDERAL
OR STATE LAW, OR
"(B) A CHANGE IN THE DEFINITION OF THE TERM 'WAGES' UNDER
SECTION 3121, //26 USC 3121.// OR A CHANGE IN THE AMOUNT OF SUCH
WAGES TAKEN INTO ACCOUNT UNDER REGULATIONS PRESCRIBED FOR PURPOSES
OF SECTION 401(A) (5), //26 USC 401.// RESULTS IN AN INCREASE OR
DECREASE IN ACCRUED LIABILITY UNDER A PLAN, SUCH INCREASE OR
DECREASE SHALL BE TREATED AS AN EXPERIENCE LOSS OR GAIN.
"(5) CHANGE IN FUNDING METHOD OR IN PLAN YEAR REQUIRES
APPROVAL.--IF THE FUNDING METHOD FOR A PLAN IS CHANGED, THE NEW
FUNDING METHOD SHALL BECOME THE FUNDING METHOD USED TO DETERMINE
COSTS AND LIABILITIES UNDER THE PLAN ONLY IF THE CHANGE IS
APPROVED BY THE SECRETARY OR HIS DELEGATE. IF THE PLAN YEAR FOR A
PLAN IS CHANGED, THE NEW PLAN YEAR SHALL BECOME THE PLAN YEAR FOR
THE PLAN ONLY IF THE CHANGE IS APPROVED BY THE SECRETARY OR HIS
DELEGATE.
"(6) FULL FUNDING.--IF, AS OF THE CLOSE OF A PLAN YEAR, A PLAN
WOULD (WITHOUT REGARD TO THIS PARAGRAPH) HAVE AN ACCUMULATED
FUNDING DEFICIENCY (DETERMINED WITHOUT REGARD TO THE ALTERNATIVE
MINIMUM FUNDING STANDARD ACCOUNT PERMITTED UNDER SUBSECTION (G))
IN EXCESS OF THE FULL FUNDING LIMITATION--,
"(A) THE FUNDING STANDARD ACCOUNT SHALL BE CREDITED WITH THE
AMOUNT OF SUCH EXCESS, AND
"(B) ALL AMOUNTS DESCRIBED IN PARAGRAPHS (2) (B), (C), AND (D)
AND (3) (B) OF SUBSECTION (B) WHICH ARE REQUIRED TO BE AMORTIZED
SHALL BE CONSIDERED FULLY AMORTIZED FOR PURPOSES OF SUCH
PARAGRAPHS.
"(7) FULL FUNDING LIMITATION.--FOR PURPOSES OF PARAGRAPH (6),
THE TERM 'FULL FUNDING LIMITATION' MEANS THE EXCESS (IF ANY) OF--,
"(A) THE ACCRUED LIABILITY (INCLUDING NORMAL COST) UNDER THE
PLAN (DETERMINED UNDER THE ENTRY AGE NORMAL FUNDING METHOD IF SUCH
ACCRUED LIABILITY CANNOT BE DIRECTLY CALCULATED UNDER THE FUNDING
METHOD USED FOR THE PLAN), OVER
"(B) THE LESSER OF THE FAIR MARKET VALUE OF THE PLAN'S ASSETS
OR THE VALUE OF SUCH ASSETS DETERMINED UNDER PARAGRAPH (2).
"(8) CERTAIN RETROACTIVE PLAN AMENDMENTS.--FOR PURPOSES OF THIS
SECTION, ANY AMENDMENT APPLYING TO A PLAN YEAR WHICH--,
"(A) IS ADOPTED AFTER THE CLOSE OF SUCH PLAN YEAR BUT NO LATER
THAN 2 AND ONE-HALF MONTHS AFTER THE CLOSE OF THE PLAN YEAR (OR,
IN THE CASE OF A MULTIEMPLOYER PLAN, NO LATER THAN 2 YEARS AFTER
THE CLOSE OF SUCH PLAN YEAR),
"(B) DOES NOT REDUCE THE ACCRUED BENEFIT OF ANY PARTICIPANT
DETERMINED AS OF THE BEGINNING OF THE FIRST PLAN YEAR TO WHICH THE
AMMENDMENT APPLIES, AND
"(C) DOES NOT REDUCE THE ACCRUED BENEFIT OF ANY PARTICIPANT
DETERMINED AS OF THE TIME OF ADOPTION EXCEPT TO THE EXTENT
REQUIRED BY THE CIRCUMSTANCES, SHALL, AT THE ELECTION OF THE
PLANADMINISTRATOR, BE DEEMED TO HAVE BEEN MADE ON THE FIRST DAY OF
SUCH PLAN YEAR. NO AMENDMENT DESCRIBED IN THIS PARAGRAPH WHICH
REDUCES THE ACCRUED BENEFITS OF ANY PARTICIPANT SHALL TAKE EFFECT
UNLESS THE PLAN ADMINISTRATOR FILES A NOTICE WITH THE SECRETARY OF
LABOR NOTIFYING HIM OF SUCH AMENDMENT AND THE SECRETARY OF LABOR
HAS APPROVED SUCH AMENDMENT, OR WITHIN 90 DAYS AFTER THE DATE ON
WHICH SUCH NOTICE WAS FILED, FAILED TO DISAPPROVE SUCH AMENDMENT.
NO AMENDMENT DESCRIBED IN THIS SUBSECTION SHALL BE APPROVED BY THE
SECRETARY OF LABOR UNLESS HE DETERMINES THAT SUCH AMENDMENT IS
NECESSARY BECAUSE OF A SUBSTANTIAL BUSINESS HARDSHIP (AS
DETERMINED UNDER SUBSECTION (D) (2) AND THAT A WAIVER UNDER
SUBSECTION (D) (1) IS UNAVAILABLE OR INADEQUATE.
"(9) 3-YEAR VALUATION.--FOR PURPOSES OF THIS SECTION, A
DETERMINATION OF EXPERIENCE GAINS AND LOSSES AND A VALUATION OF
THE PLAN'S LIABILITY SHALL BE MADE NOT LESS FREQUENTLY THAN ONCE
EVERY 3 YEARS, EXCEPT THAT SUCH DETERMINATION SHALL BE MADE MORE
FREQUENTLY TO THE EXTENT REQUIRED IN PARTICULAR CASES UNDER
REGULATIONS PRESCRIBED BY THE SECRETARY OR HIS DELEGATE.
"(10) TIME WHEN CERTAIN CONTRIBUTIONS DEEMED MADE.--, FOR
PURPOSES OF THIS SECTION, ANY CONTRIBUTIONS FOR A PLAN YEAR MADE
BY AN EMPLOYER AFTER THE LAST DAY OF SUCH PLAN YEAR, BUT NOT LATER
THAN TWO AND ONE-HALF MONTHS AFTER SUCH DAY, SHALL BE DEEMED TO
HAVE BEEN MADE ON SUCH LAST DAY. FOR PURPOSES OF THIS PARAGRAPH,
SUCH TWO AND ONE-HALF MONTH PERIOD MAY BE EXTENDED FOR NOT MORE
THAN SIX MONTHS UNDER REGULATIONS PRESCRIBED BY THE SECRETARY OR
HIS DELEGATE.
"(D) VARIANCE FROM MINIMUM FUNDING STANDARD.--,
"(1) WAIVER IN CASE OF SUBSTANTIAL BUSINESS HARDSHIP--, IF A
EMPLOYER OR IN THE CASE OF A MULTIEMPLOYER PLAN, 10 PERCENT OR
MORE OF THE NUMBER OF EMP LOYERS CONTRIBUTING TO OR UNDER THE
PLAN, ARE UNABLE TO SATISFY THE MINIMUM FUNDING STANDARD FOR A
PLAN YEAR WITHOUT SUBSTANTIAL BUSINESS HARDSHIP AND IF APPLICATION
OF THE STANDARD WOULD BE ADVERSE TO THE INTERESTS OF PLAN
PARTICIPANTS IN THE AGGREGATE, THE SECRETARY OR HIS DELEGATE MAY
WAIVE THE REQUIREMENTS OF SUBSECTION (A) FOR SUCH YEAR WITH
RESPECT TO ALL OR ANY PROTION OF THE MINIMUM FUNDING STANDARD
OTHER THAN THE PROTION THEREOF DETERMINED UNDER SUBSECTION (B) (2)
(C). THE SECRETARY OR HIS DELEGATE SHALL NOT WAIVE THE MINIMUM
FUNDING STANDARD WITH RESPECT TO A PLAN FOR MORE THAN 5 OF ANY 15
CONSECUTIVE PLAN YEARS.
"(2) DETERMINATION OF SUBSTANTIAL BUSINESS HARDSHIP.--, FOR
PURPOSES OF THIS SECTION, THE FACTORS TAKEN INTO ACCOUNT IN
DETERMINING SUBSTANTIAL BUSINESS HARDSHIP SHALL INCLUDE (BUT SHALL
NOT BE LIMITED TO) WHETHER OR NOT--,
"(A) THE EMPLOYER IS OPERATING AT AN ECONOMIC LOSS,
"(B) THERE IS SUBSTANTIAL UNEMPLOYMENT OR UNDEREMPLOYMENT IN
THE TRADE OR BUSINESS AND IN THE INDUSTRY CONCERNED,
"(C) THE SALES AND PROFITS OR THE INDUSTRY CONCERNED ARE
DEPRESSED OR DECLINING, AND
"(D) IT IS REASONABLE TO EXPECT THAT THE PLAN WILL BE CONTINUED
ONLY IF THE WAIVER IS GRANTED.
"(3) WAIVED FUNDING DEFICIENCY.--FOR PURPOSES OF THIS SECTION,
THE TERM 'WAIVED FUNDING DEFICIENCY' MEANS THE PORTION OF THE
MINIMUM FUNDING STANDARD (DETERMINED WITHOUT REGARD TO SUBSECTION
(B) (3) (C) FOR A PLAN YEAR WAIVED BY THE SECRETARY OR HIS
DELEGATE AND NOT SATISFIED BY EMPLOYER CONTRIBUTIONS.
"(E) EXTENSION OF AMORTIZATION PERIOD.--THE PERIOD OF YEARS REQUIRED
TO AMORTIZE ANY UNFUNDED LIABILITY (DESCRIBED IN ANY CLAUSE OF
SUBSECTION (B) (2) (B) OF ANY PLAN MAY BE EXTENDED BY THE SECRETARY OF
LABOR FOR A PERIOD OF TIME (NOT IN EXCESS OF 10 YEARS) IF HE DETERMINES
THAT SUCH EXTENDION WOULD CARRY OUT THE PURPOSES OF THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974 //ANTE, P. 829.// AND WOULD
PROVIDE ADEQUATE PROTECTION FOR PARTICIPANTS UNDER THE PLAN AND THEIR
BENEFICIARIES AND IF HE DETERMINES THAT THE FAILURE TO PERMIT SUCH
EXTENSION WOULD--,
"(1) RESULT IN--,
"(A) A SUBSTANTIAL RISK TO THE VOLUNTARY CONTINUATION OF THE
PLAN, OR
"(B) A SUBSTANTIAL CURTAILMENT OF PENSION BENEFIT LEVELS OR
EMPLOYEE COMPENSATION, AND
"(2) TO ADVERSE TO THEINTERESTS OF PLAN PARTICIPANTS IN THE
AGGREGATE.
"(F) BENEFITS MAY NOT BE INCREASED DURING WAIVER OR EXTENSION
PERIOD.--,
"(1) IN GENERAL.--NO AMENDMENT OF THE PLAN WHICH INCREASES THE
LIABILITIES OF THE PLAN BY REASON OF ANY INCREASE IN BENEFITS, ANY
CHANGE IN THE ACCRUAL OF BENEFITS, OR ANY CHANGE IN THE RATE AT
WHICH BENEFITS BECOME NONFORFEITABLE UNDER THE PLAN SHALL BE
ADOPTED IF A WAIVER UNDER SUBSECTION (D) (1) OR AN EXTENSION OF
TIME UNDER SUBSECTION (E) IS IN EFFECT WITH RESPECT TO THE PLAN,
OR IF A PLAN AMENDMENT DESCRIBED IN SUBSECTION (C) (8) HAS BEEN
MADE AT ANY TIME IN THE PRECEDING 12 MONTHS (24 MONTHS FOR
MULTIEMPLOYER PLAN). IF A PLAN IS AMENDED IN VIOLATION OF THE
PRECEDING SENTENCE, ANY SUCH WAIVER OR EXTENSION OF TIME SHALL NOT
APPLY TO ANY PLAN YEAR ENDING ON OR AFTER THE DATE ON WHICH SUCH
AMENDMENT IS ADOPTED.
"(2) EXCEPTION.--PARAGRAPH (1) SHALL NOT APPLY TO ANY PLAN
AMENDMENT WHICH--,
"(A) THE SECRETARY OF LABOR DETERMINES TO BE REASONABLE AND
WHICH PROVIDES FOR DE MINIMIS INCREASES IN THE LIABILITIES OF THE
PLAN,
"(B) ONLY REPEALS AN AMENDMENT DESCRIBED IN SUBSECTION (C) (8),
OR
"(C) IS REQUIRED AS A CONDITION OF QUALIFICATION UNDER THIS
PART.
"(G) ALTERNATIVE MINIMUM FUNDING STANDARD.--,
"(1) IN GENERAL.--A PLAN WHICH USES A FUNDING METHOD THAT
REQUIRES CONTRIBUTIONS IN ALL YEARS NOT LESS THAN THOSE REQUIRED
UNDER THE ENTRY AGY NORMAL FUNDING METHOD MAY MAINTAIN AN
ALTERNATIVE MINIMUM FUNDING STANDARD ACCOUNT FOR ANY PLAN YEAR.
SUCH ACCOUNT SHALL BE CREDITED AND CHARGED SOLELY AS PROVIDED IN
THIS SUBSECTION.
"(2) CHARGES AND CREDITS TO ACCOUNT.--FOR A PLAN YEAR THE
ALTERNATIVE MINIMUM FUNDING STANDARD ACCOUNT SHALL BE--,
"(A) CHARGED WITH THE SUM OF--,
"(I) THE LESSER OF NORMAL COST UNDER THE FUNDING METHOD USED
UNDER THE PLAN OR NORMAL COST DETERMINED UNDER THE UNIT CREDIT
METHOD,
"(II) THE EXCESS, IF ANY, OF THE PRESENT VALUE OF ACCRUED
BENEFITS UNDER THE PLAN OVER THE FAIR MARKET VALUE OF THE ASSETS,
AND
"(III) AN AMOUNT EQUAL TO THE EXCESS (IF ANY) OF CREDITS TO THE
ALTERNATIVE MINIMUM STANDARD ACCOUNT FOR ALL PRIOR PLAN YEARS OVER
CHARGES TO SUCH ACCOUNT FOR ALL SUCH YEARS, AND
"(B) CREDITED WITH THE AMOUNT CONSIDERED CONTRIBUTED BY THE
EMPLOYER TO OR UNDER THE PLAN FOR THE PLAN YEAR.
"(3) SPECIAL RULES.--THE ALTERNATIVE MINIMUM FUNDING STANDARD
ACCOUNT (AND ITEMS THEREIN) SHALL BE CHARGED OR CREDITED WITH
INTEREST IN THE MANNER PROVIDED UNDER SUBSECTION (B) (5) WITH
RESPECT TO THE FUNDING STANDARD ACCOUNT.
"(H) EXCEPTIONS.--THIS SECTION SHALL NOT APPLY TO--,
"(1) ANY PROFIT-SHARING OR STOCK BONUS PLAN,
"(2) ANY INSURANCE CONTRACT PLAN DESCRIBED IN SUBSECTION (I),
"(3) ANY GOVERNMENTAL PLAN (WITHIN THE MEANING OF SECTION 414(
D)), //POST, P. 925.//
"(4) ANY CHURCH PLAN (WITHIN THE MEANING OF SECTION 414(E))
WITH REWPECT TO WHICH THE ELECTION PROVIDED BY SECTION 410(D))
//ANTE, P. 898.// HAS NOT BEEN MADE,
"(5) ANY PLAN WHICH NAS NOT, AT ANY TIME AFTER THE DATE OF THE
ENACTMENT OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
//ANTE, P. 829.// PROVIDED FOR EMPLOYER CONTRIBUTIONS, OR
"(6) ANY PLAN ESTABLISHED AND MAINTAINED BY A SOCIETY, ORDER,
OR ASSOCIATION DESCRIBED IN SECTION 501(C) (8) OR (9), //26 USC
501.// IF NO PART OF THE CONTRIBUTIONS TO OR UNDER SUCH PLAN ARE
MADE BY EMPLOYERS OF PARTICIPANTS IN SUCH PLAN.
NO PLAN DESCRIBED IN PARAGRAPH (3), (4), OR (6) SHALL BE TREATED AS A
QUALIFIED PLAN FOR PURPOSES OF SECTION 401(A) UNLESS SUCH PLAN MEETS THE
REQUIREMENTS OF SECTION 401(A) (7) AS IN EFFECT ON THE DAY BEFORE THE
DATE OF THE ENACTMENT OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
1974.
"(I) CERTAIN INSURANCE CONTRACT PLANS.--A PLAN IS DESCRIBED IN THIS
SUBSECTION IF--,
"(1) THE PLAN IS FUNDED EXCLUSIVELY BY THE PURCHASE OF INDIVIDUAL
INSURANCE CONTRACTS,
"(2) SUCH CONTRACTS PROVIDE FOR LEVEL ANNUAL PREMIUM PAYMENTS
TO BE PAID EXTENDING NOT LATER THAN THE RETIREMENT AGE FOR EACH
INDIVIDUAL PARTICIPATING IN THE PLAN, AND COMMENCING WITH THE DATE
THE INDIVIDUAL BECAME A PARTICIPANT IN THE PLAN (OR, IN THE CASE
OF AN INCREASE IN BENEFITS, COMMENCING AT THE TIME SUCH INCREASE
BECOMES EFFECTIVE),
"(3) BENEFITS PROVIDED BY THE PLAN ARE EQUAL TO THE BENEFITS
PROVIDED UNDER EACH CONTRACT AT NORMAL RETIREMENT AGE UNDER THE
PLAN AND ARE GUARANTEED BY AN INSURANCE CARRIER (LICENSED UNDER
THE LAWS OF A STATE TO DO BUSINESS WITH THE PLAN) TO THE EXTENT
PREMIUMS HAVE BEEN PAID,
"(4) PREMIUMS PAYABLE FOR THE PLAN YEAR, AND ALL PRIOR PLAN
YEARS, UNDER SUCH CONTRACTS HAVE BEEN PAID BEFORE LAPSE OR THERE
IS REINSTATEMENT OF THE POLICY,
"(5) NO RIGHTS UNDER SUCH CONTRACTS HAVE BEEN SUBJECT TO A
SECURITY INTEREST AT ANY TIME DURING THE PLAN YEAR, AND
"(6) NO POLICY LOANS ARE OUTSTANDING AT ANY TIME DURING THE
PLAN YEAR.
A PLAN FUNDED EXCLUSIVELY BY THE PURCHASE OF GROUP INSURANCE CONTRACTS
WHICHIS DETERMINED UNDER REGULATIONS PRESCRIBED BY THE SECRETARY OR HIS
DELEGATE TO HAVE THE SAME CHARACTERISTICS AS CONTRACTS DESCRIBED IN THE
PRECEDING SENTENCE SHALL BE TREATED AS A PLAN DESCRIBED IN THIS
SUBSECTION."
(B) EXCISE TAX ON FAILURE TO MEET MINIMUM FUNDING STANDARD.--,
SUBTITLE D, //26 USC 4041, 4940.// (RELATING TO MISCELLANEOUS EXCISE
TAXES) IS AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING NEW
CHAPTER:
"SEC. 4971. TAXES ON FAILURE TO MEET MINIMUM FUNDING STANDARDS.
STANDARDS.
"(A) INITIAL TAX.--FOR EACH TAXABLE YEAR OF AN EMPLOYER WHO MAINTAINS
A PLAN TO WHICH SECTION 412 //ANTE, P. 914.// APPLIES, THERE IS HEREBY
IMPOSED A TAX OF 5 PERCENT ON THE AMOUNT OF THE ACCUMULATED FUNDING
DEFICIENCY UNDER THE PLAN, DETERMINED AS OF THE END OF THE PLAN YEAR
ENDING WITH OR WITHIN SUCH TAXABLE YEAR. THE TAX IMPOSED BY THIS
SUBSECTION SHALL BE PAID BY THE EMPLOYER RESPONSIBLE FOR CONTRIBUTING TO
OR UNDER THE PLAN THE AMOUNT DESCRIBED IN SECTION 412(B) (3) (A).
"(B) ADDITIONAL TAX.--IN ANY CASE IN WHICH AN INITIAL TAX IS IMPOSED
BY SUBSECTION (A) ON AN ACCUMULATED FUNDING DEFICIENCY AND SUCH
ACCUMULATED FUNDING DEFICIENCY IS NOT CORRECTED WITHIN THE CORRECTION
PERIOD, THERE IS HEREBY IMPOSED A TAX EQUAL TO 100 PERCENT OF SUCH
ACCUMULATED FUNDING DEFICIENCY TO THE EXTENT NOT CORRECTED. THE TAX
IMPOSED BY THIS SUBSECTION SHALL BE PAID BY THE EMPLOYER DESCRIBED IN
SUBSECTION (A).
"(C) DEFINITIONS.--FOR PURPOSES OF THIS SECTION--,
"(1) ACCUMULATED FUNDING DEFICIENCY.--THE TERM 'ACCUMULATED
FUNDING DEFICIENCY' HAS THE MEANING GIVEN TO SUCH TERM BY THE LAST
SENTENCE OF SECTION 412(A).
"(2) CORRECT.--THE TERM 'CORRECT' MEANS, WITH RESPECT TO AN
ACCUMULATED FUNDING DEFICIENCY, THE CONTRIBUTION, TO OR UNDER THE
PLAN, OF THE AMOUNT NECESSARY TO REDUCE SUCH ACCUMULATED FUNDING
DEFICIENCY AS OF THE END OF A PLAN YEAR IN WHICH SUCH DEFICIENCY
AROSE TO ZERO.
"(3) CORRECTION PERIOD.--THE TERM 'CORRECTION PERIOD' MEANS,
WITH RESPECT TO AN ACCUMULATED FUNDING DEFICIENCY, THE PERIOD
BEGINNING WITH THE END OF A PLAN YEAR IN WHICH THERE IS AN
ACCUMULATED FUNDING DEFICIENCY AND ENDING 90 DAYS AFTER THE DATE
OF MAILING OF A NOTICE OF DEFICIENCY UNDER SECTION 6212 //26 USC
6212.// WITH RESPECT TO THE TAX IMPOSED BY SUBSECTION (B),
EXTENDED--,
"(A) BY ANY PERIOD IN WHICH A DEFICIENCY CANNOT BE ASSESSED
UNDER SECTION 6213(A), AND
"(B) BY ANY OTHER PERIOD WHICH THE SECRETARY OR HIS DELEGATE
DETERMINES IS REASONABLE AND NECESSARY TO PERMIT A REDUCTION OF
THE ACCUMULATED FUNDING DEFICIENCY TO ZERO UNDER THIS SECTION.
"(D) NOTIFICATION OF THE SECRETARY OF LABOR.--BEFORE ISSUING A NOTICE
OF DEFICIENCY WITH RESPECT TO THE TAX IMPOSED BY SUBSECTION (A) OR (B),
THE SECRETARY OR HIS DELEGATE SHALL NOTIFY THE SECRETARY OF LABOR AND
PROVIDE HIM A REASONABLE OPPROTUNITY (BUT NOT MORE THAN 60 DAYS)--,
"(1) TO REQUIRE THE EMPLOYER RESPONSIBLE FOR CONTRIBUTING TO OR
UNDER THE PLAN TO ELIMINATE THE ACCUMULATED FUNDING DEFICIENCY, OR
"(2) TO COMMENT OF THE IMPOSITION OF SUCH TAX.
"(E) CROSS REFERENCE.--,
"FOR DISALLOWANCE OF DEDUCTION FOR TAXES PAID UNDER THIS SECTION, SEE
SECTION 275.
"FOR LIABILITY FOR TAX IN CASE OF AN EMPLOYER PARTY TO COLLECTIVE
BARGAINING AGREEMENT, SEE SECTION 413(B) (6).
"FOR PROVISIONS CONCERNING NOTIFICATION OF SECRETARY OF LABOR OF
IMPOSITION OF TAX UNDER THIS SECTION, WAIVER OF THE TAX IMPOSED BY
SUBSECTION (B), AND OTHER COORDINATION BETWEEN SECRETARY OF THE TREASURY
AND SECRETARY OF LABOR WITH RESPECT TO COMPLIANCE WITH THIS SECTION, SEE
SECTION 3002(B) OF TITLE III OF THE EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974.".
(C) AMENDMENTS TO SECTION 404.--,
(1) PARAGRAPH (1) OF SECTION 404(A) //26 USC 404.// (RELATING
TO DEDUCTION FOR EMPLOYER CONTRIBUTIONS TO PENSION TRUSTS) IS
AMENDED TO READ AS FOLLOWS:
"(1) PENSION TRUSTS.
"(A) IN GENERAL.--IN THE TAXABLE YEAR WHEN PAID, IF THE
CONTRIBUTIONS ARE PAID INTO A PENSION TRUST, AND IF SUCH TAXABLE
YEAR ENDS WITHIN OR WITH A TAXABLE YEAR OF THE TRUST FOR WHICH THE
TRUST IS EXEMPT UNDER SECTION 501(A), IN AN AMOUNT DETERMINED AS
FOLLOWS:
"(I) THE AMOUNT NECESSARY TO SATISFY THE MINIMUM FUNDING
STANDARD PROVIDED BY SECTION 412(A) //ANTE, P. 914.// FOR PLAN
YEARS ENDING WITHIN OR WITH SUCH TAXABLE YEAR (OR FOR ANY PRIOR
PLAN YEAR), IF SUCH AMOUNT IS GREATER THAN THE AMOUNT DETERMINED
UNDER CLAUSE (II) OR (III) (WHICHEVER IS APPLICABLE WITH RESPECT
TO THE PLAN),
"(II) THE AMOUNT NECESSARY TO PROVIDE WITH RESPECT TO ALL OF
THE EMPLOYEES UNDER THE TRUST THE REMAINING UNFUNDED COST OF THEIR
PAST AND CURRENT SERVICE CREDITS DISTRIBUTED AS A LEVEL AMOUNT, OR
A LEVEL PERCENTAGE OF COMPENSATION, OVER THE REMAINING FUTURE
SERVICE OF EACH SUCH EMPLOYEE, AS DETERMINED UNDER REGULATION
PRESCRIBED BY THE SECRETARY OR HIS DELEGATE, BUT IF SUCH REMAINING
UNFUNDED COST WITH RESPECT TO ANY 3 INDIVIDUALS IS MORE THAN 50
PERCENT OF SUCH REMAINING UNFUNDED COST, THE AMOUNT OF SUCH
UNFUNDED COST ATTRIBUTABLE TO SUCH INDIVIDUALS SHALL BE
DISTRIBUTED OVER A PERIOD OF AT LEAST 5 TAXABLE YEARS.
"(III) AN AMOUNT EQUAL TO THE NORMAL COST OF THE PLAN, AS
DETERMINED UNDER REGULATIONS PRESCRIBED BY THE SECRETARY OR HIS
DELEGATE, PLUS, IF PAST SERVICE OR OTHER SUPPLEMENTARY PENSION OR
ANNUITY CREDITS ARE PROVIDED BY THE PLAN, AN AMOUNT NECESSARY TO
AMORTIZE SUCH CREDITS IN EQUAL ANNUAL PAYMENTS (UNTIL FULLY
AMORTIZED) OVER 10 YEARS, AS DETERMINED UNDER REGULATIONS
PRESCRIBED BY THE SECRETARY OR HIS DELEGATE. IN DETERMINING THE
AMOUNT DEDUCTIBLE IN SUCH YEAR UNDER THE FOREGOING LIMITATIONS THE
FUNDING METHOD AND THE ACTUARIAL ASSUMPTIONS USED SHALL BE THOSE
USED FOR SUCH YEAR UNDER SECTION 412, AND THE MAXIMUM AMOUNT
DEDUCTIBLE FOR SUCH YEAR SHALL BE AN AMOUNT EQUAL TO THE FULL
FUNDING LIMITATION FOR SUCH YEAR DETERMINED UNDER SECTION 412.
"(B) SPECIAL RULE IN CASE OF CERTAIN AMENDMENTS.--IN THE CASE
OF A PLAN WHICH THE SECRETARY OF LABOR FINDS TO BE COLLECTIVELY
BARGAINED WHICH MAKES AN ELECTION UNDER THIS SUBPARAGRAPH (IN SUCH
MANNER AND AT SUCH TIME AS MAY BE PROVIDED UNDER REGULATIONS
PRESCRIBED BY THE SECRETARY OR HIS DELEGATE), IF THE FULL FUNDING
LIMITATION DETERMINED UNDER SECTION 421(C) (7) FOR SUCH YEAR IS
ZERO, IF AS A RESULT OF ANY PLAN AMENDMENT APPLYING TO SUCH PLAN
YEAR, THE AMOUNT DETERMINED UNDER SECTION 412(C)(7) (B) EXCEEDS
THE AMOUNT DETERMINED UNDER SECTION 412(C)(7) (A), AND IF THE
FUNDING METHOD AND THE ACTUARIAL ASSUMPTIONS USED ARE THOSE USED
FOR SUCH YEAR UNDER SECTION 412, THE MAXIMUM AMOUNT DEDUCTIBLE IN
SUCH YEAR UNDER THE LIMITATIONS OF THIS PARAGRAPH SHALL BE AN
AMOUNT EQUAL TO THE LESSER OF--,
"(I) THE FULL FUNDING LIMITATION FOR SUCH YEAR DETERMINED BY
APPLYING SECTION 412(C) (7) BUT INCREASING THE AMOUNT REFERRED TO
IN SUBPARAGRAPH (A) THEREOF BY THE DECREASE IN THE PRESENT VALUE
OF ALL UNAMORTIZED LIABILITIES RESULTING FROM SUCH AMENDMENT, OR
"(II) THE NORMAL COST UNDER THE PLAN REDUCED BY THE AMOUNT
NECESSARY TO AMORTIZE IN EQUAL ANNUAL INSTALLMENTS OVER 10 YEARS
(UNTIL FULLY AMORTIZED) THE DECREASE DESCRIBED IN CLAUSE (I). IN
THE CASE OF ANY ELECTION UNDER THIS SUBPARAGRAPH, THE AMOUNT
DEDUCTIBLE UNDER THE LIMITATIONS OF THIS PARAGRAPH WITH RESPECT TO
ANY OF THE PLAN YEARS FOLLOWING THE PLAN YEAR FOR WHICH SUCH
ELECTION WAS MADE SHALL BE DETERMINED AS PROVIDED UNDER SUCH
REGULATIONS AS MAY BE PRESCRIBED BY THE SECRETARY OR HIS DELEGATE
TO CARRY OUT THE PURPOSES OF THIS SUBPARAGRAPH.
"(C) CERTAIN COLLECTIVELY-BARGAINED PLANS.--IN THE CASE OF A
PLAN WHICH THE SECRETARY OF LABOR FINDS TO BE COLLECTIVELY
BARGAINED, ESTABLISHED OR MAINTAINED BY AN EMPLOYER DOING BUSINESS
IN NOT LESS THAN 40 STATES AND ENGAGED IN THE TRADE OR BUSINESS OF
FURNISHING OR SELLING SERVICES DESCRIBED IN SECTION 167(1) (3) (A)
(III), //26 USC 167.// WITH RESPECT TO WHICH THE RATES HAVE BEEN
ESTABLISHED OR APPROVED BY A STATE OR POLITICAL SUBDIVISION
THEREOF, BY ANY AGENCY OR INSTRUMENTALITY OF THE UNITED STATES, OR
BY A PUBLIC SERVICE OR PUBLIC UTILITY COMMISSION OR OTHER SIMILAR
BODY OF ANY STATE OR POLITICAL SUBDIVISION THEREOF, AND IN THE
CASE OF ANY EMPLOYER WHICH IS A MEMBER OF A CONTROLLED GROUP WITH
SUCH EMPLOYER, SUBPARAGRAPH (B) SHALL BE APPLIED BY SUBSTITUTING
FOR THE WORDS 'PLAN AMENDMENT' THE WORDS 'PLAN AMENDMENT OR
INCREASE IN BENEFITS PAYABLE UNDER TITLE II OF THE SOCIAL SECURITY
ACT'. //42 USC 401.// FOR PURPOSES OF THIS SUBPARAGRAPH, THE TERM
'CONTROLLED GROUP' HAS THE MEANING PROVIDED BY SECTION 1563(A),
DETERMINED WITHOUT REGARD TO SECTION 1563(A) (4) (C). //26 USC
1563.//
"(D) CARRYOVER.--ANY AMOUNT PAID IN A TAXABLE YEAR IN EXCESS OF
THE AMOUNT DEDUCTIBLE IN SUCH YEAR UNDER THE FOREGOING LIMITATIONS
SHALL BE DEDUCTIBLE IN THE SUCCEEDING TAXABLE YEARS IN ORDER TO
TIME TO THE EXTENT OF THE DIFFERENCE BETWEEN THE AMOUNT PAID AND
DEDUCTIBLE IN EACH SUCH SUCCEEDING YEAR AND THE MAXIMUM AMOUNT
DEDUCTIBLE FOR SUCH YEAR UNDER THE FOREGOING LIMITATIONS."
(2) PARAGRAPH (6) OF SECTION 404(A) (RELATING TO TAXPAYERS ON
ACCRUAL BASIS) IS AMENDED TO READ AS FOLLOWS:
"(6) TIME WHEN CONTRIBUTIONS DEEMED MADE.--FOR PURPOSES OF
PARAGRAHS (1), (2), AND (3), A TAXPAYER SHALL BE DEEMED TO HAVE
MADE PAYMENT ON THE LAST DAY OF THE PRECEDING TAXABLE YEAR IF THE
PAYMENT IS ON ACCOUNT OF SUCH TAXABLE YEAR AND IS MADE NOT LATER
THAN THE TIME PRESCRIBED BY LAW FOR FILING THE RETURN FOR SUCH
TAXABLE YEAR (INCLUDING EXTENSIONS THEREOF)."
(3) PARAGRAPH (7) OF SECTION 404(A) (RELATING TO LIMIT ON
DEDUCTIONS) IS AMENDED TO READ AS FOLLOWS:
"(7) LIMIT ON DEDUCTIONS.--IF AMOUNTS ARE DEDUCTIBLE UNDER
PARAGRAPHS (1) AND (3), OR (2) AND (3), OR (1), (2), AND (3), IN
CONNECTION WITH TWO OR MORE TRUSTS, OR ONE OR MORE TRUSTS AND AN
ANNUITY PLAN, THE TOTAL AMOUNT DEDUCTIBLE IN A TAXABLE YEAR UNDER
SUCH TRUSTS AND PLANS SHALL NOT EXCEED THE GREATER OF 25 PERCENT
OF THE COMPENSATION OTHERWISE PAID OR ACCRUED DURING THE TAXABLE
YEAR TO THE BENEFICIARIES OF THE TRUSTS OR PLAN, OR THE AMOUNT OF
CONTRIBUTIONS MADE TO OR UNDER THE TRUSTS OR PLAN TO THE EXTENT
SUCH CONTRIBUTIONS DO NOT EXCEED THE AMOUNT OF EMPLOYER
CONTRIBUTIONS NECESSARY TO SATISFY THE MINIMUM FUNDING STANDARD
PROVIDED BY SECTION 412 //ANTE, P. 914.// FOR THE PLAN YEAR WHICH
ENDS WITH OR WITHIN SUCH TAXABLE YEAR (OR FOR ANY PRIOR PLAN
YEAR). IN ADDITION, ANY AMOUNT PAID INTO SUCH TRUST OR UNDER SUCH
ANNUITY PLANS IN ANY TAXABLE YEAR IN EXCESS OF THE AMOUNT
ALLOWABLE WITH RESPECT TO SUCH YEAR UNDER THE PRECEDING PROVISIONS
OF THIS PARAGRAPH SHALL BE DEDUCTIBLE IN THE SUCCEEDING TAXABLE
YEARS IN ORDER OF TIME, BUT THE AMOUNT SO DEDUCTIBLE UNDER THIS
SENTENCE IN ANY ONE SUCH SUCCEEDING TAXABLE YEAR TOGETHER EITH THE
AMOUNT ALLOWABLE UNDER THE FIRST SENTENCE OF THIS PARAGRAPH SHALL
NOT EXCEED 25 PERCENT OF THE COMPENSATION OTHERWISE PAID OR
ACCRUED DURING SUCH TAXABLE YEARS TO THE BENEFICIARIES UNDER THE
TRUSTS OR PLANS. THIS PARAGRAPH SHALL NOT HAVE THE EFFECT OF
REDUCING THE AMOUNT OTHERWISE DEDUCTIBLE UNDER PARAGRAPHS (1),
(2), AND (3), IF NO EMPLOYEE IS A BENEFICIARY UNDER MORE THAN ONE
TRUST OR A TRUST AND AN ANNUITY PLAN."
(D) ALTERNATIVE AMORTIZATION METHOD FOR CERTAIN MULTIEMPLOYER
PLANS.--, //26 USC 412 NOTE.//
(1) GENERAL RULE.--IN THE CASE OF ANY MULTIEMPLOYER PLAN (AS
DEFINED IN SECTION 414(F) OF THE INTERNAL REVENUE CODE OF 1954) TO
WHICH SECTION 412 OF SUCH CODE APPLIES, IF--, //POST, P. 925.//
(A) ON JANUARY 1, 1974, THE CONTRIBUTIONS UNDER THE PLAN WERE
BASED ON A PERCENTAGE OF PAY, //ANTE, P. 914.//
(B) THE ACTUARIAL ASSUMPTIONS WITH RESPECT TO PAY ARE
REASONABLY RELATED TO PAST AND PROJECTED EXPERIENCE, AND
(C) THE RATES OF INTEREST UNDER THE PLAN ARE DETERMINED ON THE
BASIS OF REASONABLE ACTUARIAL ASSUMPTIONS, THE PLAN MAY ELECT (IN
SUCH MANNER AND AT SUCH TIME AS MAY BE PROVIDED UNDER REGULATIONS
PRESCRIBED BY THE SECRETARY OF THE TREASURY OR HIS ELECT (IN SUCH
MANNER AND AT SUCH TIME AS MAY BE PROVIDED UNDER REGULATIONS
PRESCRIBED BY THE SECRETARY OF THE TREASURY OR HIS DELEGATE) TO
FUND THE UNFUNDED PAST SERVICE LIABILITY UNDER THE PLAN EXISTING
AS OF THE DATE 12 MONTHS FOLLOWING THE FIRST DATE ON WHICH SUCH
SECTION 412 FIRST APPLIES TO THE PLAN BY CHARGING THE FUNDING
STANDARD ACCOUNT WITH AN EQUAL ANNUAL PERCENTAGE OF THE AGGREGATE
PAY OF ALL PARTICIPANTS IN THE PLAN IN LIEU OF THE LEVEL DOLLAR
CHARGES TO SUCH ACCOUNT REQUIRED UNDER CLAUSES (I), (II), AND
(III) OF SECTION 412(B) (2) (B) OF SUCH CODE AND SECTION 302(B)
(2) (B) (I), (II), AND (III) OF THIS ACT.
(2) LIMITATION.--IN THE CASE OF A PLAN WHICH MAKES AN ELECTION
UNDER PARAGRAPH (1), THE AGGREGATE OF THE CAHRGES REQUIRED UNDER
SUCH PARAGRAPH FOR A PLAN YEAR SHALL NOT BE LESS THAN THE INTEREST
ON THE FUNDED PAST SERVICE LIABILITIES DESCRIBED IN CLAUSES (I),
(II), AND (III) OF SECTION 412(B) (2) (B) OF THE INTERNAL REVENUE
CODE OF 1954. //ANTE, P. 914.//
SUBPART B OF PART I OF SUBCHAPTER D OF CHAPTER I (RELATING TO SPECIAL
RULES) IS AMENDED BY INSERTING AFTER SECTION 412 THE FOLLOWING NEW
SECTION:
"(A) APPLICATION OF SUBSECTION (B).--SUBSECTION (B) APPLIES TO--,
"(1) A PLAN MAINTAINED PURSUANT TO AN AGREEMENT WHICH THE
SECRETARY OF LABOR FINDS TO BE A COLLECTIVE-BARGAINING AGREEMENT
BETWEEN EMPLOYEE REPRESENTATIVES AND ONE OR MORE EMPLOYERS, AND
"(2) EACH TRUST WHICH IS A PART OF SUCH PLAN.
"(B) GENERAL RULE.--IF THIS SUBSECTION APPLIES TO A PLAN,
NOTWITHSTANDING ANY OTHER PROVISION OF THIS TITLE--,
"(1) PARTICIPATION.--SECTION 410 //ANTE, P. 898.// SHALL BE
APPLIED AS IF ALL EMPLOYEES OF EACH OF THE EMPLOYERS WHO ARE
PARTIES TO THE COLLECTIVE-BARGAINING AGREEMENT AND WHO ARE SUBJECT
TO THE SAME BENEFIT COMPUTATION FORMULA UNDER THE PLAN WERE
EMPLOYED BY A SINGLE EMPLOYER.
"(2) DISCRIMINATION, ETC.--SECTIONS 401(A) AND 411(D) (3)
//POST, P. 938, ANTE,P. 901.// SHALL BE APPLIED AS IF ALL
PARTICIPANTS WHO ARE SUBJECT TO THE SAME BENEFIT COMPUTATION
FORMULA AND WHO ARE EMPLOYER BY EMPLOYERS WHO ARE PARTIES TO THE
COLLECTIVE BARGAINING AGREEMENT WERE EMPLOYED BY A SINGLE
EMPLOYER.
"(3) EXCLUSIVE BENEFIT.--FOR PURPOSES OF SECTION 401(A), IN
DETERMINING WHETHER THE PLAN OF AN EMPLOYER IS FOR THE EXCLUSIVE
BENEFIT OF HIS EMPLOYEES AND THEIR BENEFICEARIES, ALL PLAN
PARTICIPANTS SHALL BE CONSIDERED TO BE HIS EMPLOYEES.
"(4) VESTING.--SECTION 411 (OTHER THAN SUBSECTION (D) (3))
SHALL BE APPLIED AS IF ALL EMPLOYERS WHO HAVE BEEN PARTIES TO THE
COLLECTIVE-BARGAINING AGREEMENT CONSTITUTED A SINGLE EMPLOYER,
EXCEPT THAT THE APPLICATION OF ANY RULES WITH RESPECT TO BREAKS IN
SERVICE SHALL BE MADE UNDER REGULATIONS PRESCRIBED BY THE
SECRETARY OF LABOR.
"(5) FUNDING.--THE MINIMUM FUNDING STANDARD PROVIDED BY SECTION
412 SHALL BE DETERMINED AS IF ALL PARTICIPANTS IN THE PLAN WERE
EMPLOYED BY A SINGLE EMPLOYER.
"(6) LIABILITY FOR FUNDING TAX.--FOR A PLAN YEAR THE LIABILITY
UNDER SECTION 4971 //ANTE, P. 920.// OF EACH EMPLOYER WHO IS A
PARTY TO THE COLLECTIVE BARGAINING AGREEMENT SHALL BE DETERMINED
IN A REASONABLE MANNER NOT INCONSISTENT WITH REGULATIONS
PRESCRIBED BY THE SECRETARY OR HIS DELEGATE--,
"(A) FIRST ON THE BASIS OF THEIR RESPECTIVE DELINQUENCIES IN
MEETING REQUIRED EMPLOYER CONTRIBUTIONS UNDER THE PLAN, AND
"(B) THEN ON THE BASIS OF THEIR RESPECTIVE LIABILITIES FOR
CONTRIBUTIONS UNDER THE PLAN.
PROVIDED BY SECTION 401(A) //26 USC 404.// SHALL BE DETERMINED AS
FI ALL PARTICIPANTS IN THE PLAN WERE EMPLOYED BY A A SINGLE
EMPLOYER. THE AMOUNTS CONTRIBUTED TO OR UNDER THE PLAN BY EACH
EMPLOYER WHO IS A PARTY TO THE AGREEMENT, FOR THE PORTION OF HIS
TAXABLE YEAR WHICH IS INCLUDED WITHIN SUCH A PLAN YEAR, SHALL BE
CONSIDERED NOT TO EXCEED SUCH A LUMITATION IF THE ANTICIPATED
EMPLOYER CONTRIBUTIONS FOR SUCH PLAN YEAR (DETERMINED IN A MANNER
CONSISTENT WITH THE MANNER IN WHICH ACTUAL EMPLOYER CONTRIBUTIONS
FOR SUCH PLAN YEAR ARE DETERMINED) DO NOT EXCEED SUCH LIMITATION.
IF SUCH ANITCIPATED CONTRIBUTIONS EXCEED SUCH A LIMITATION, THE
PORTION OF EACH SUCH EMPLOYER'S CONTRIBUTIONS WHICH IS NOT
DEDUCTIBLE UNDER SECTION 404 //26 USC 404.// SHALL BE DETERMINED
IN ACCORDANCE WITH REGULATIONS PRESCRIBED BY THE SECRETARY OR HIS
DELEGATE.
"(8) EMPLOYEES OF LABOR UNIONS.--FOR PURPOSES OF THIS
SUBSECTION, EMPLOYEES OF EMPLOYEE REPRESENTATIVES SHALL BE TREATED
AS EMPLOYEES OF AN EMPLOYER DESCRIBED IN SUBSECTION (A) (1) IF
SUCH REPRESENTATIVES MEET THE REQUIREMENTS OF SECTION 401 (A) (4)
AND 410 //POST, . 938; ANTE,. 898.// WITH RESPECT TO SUCH
EMPLOYEES.
"(C) PLANS MAINTAINED BY MORE THAN ONE EMPLOYER.--IN THE CASE OF A
PLAN MAINTAINED BY MORE THAN ONE EMPLOYER--,
"(1) PARTICIPATION.--SECTION 410 (A) SHALL BE APPLIED IF ALL
EMPLOYEES OF EACH OF THE EMPLOYERS WHO MAINTAIN THE PLAN WERE
EMPLOYED BY A SINGLE EMPLOYER.
"(2) EXCLUSIVE BENEFIT.--FOR PURPOSES OF SECTION 401(A), IN
DETERMINING WHETHER THE PLAN OF AN EMPLOYER IS FOR THE EXCLUSIVE
BENEFIT OF HIS EMPLOYEES AND THEIR BENFICIARIES ALL PLAN
PARTICIPANTS SHALL BE CONSIDERED TO BE HIS EMPLOYEES.
"(3) VESTING.--SECTION 411 //ANTE, P. 901.// SHALL BE APPLIED
AS IF ALL EMPLOYERS WHO MAINTAIN THE PLAN CONSTITUTED A SINGLE
EMPLOYER, EXCEPT THAT THE APPLICATION OF ANY RULES WITH RESPECT TO
BREAKS IN SERVICE SHALL BE MADE UNDER REGULATIONS PRESCRIBED BY
THE SECRETARY OF LABOR.
"(4) FUNDING.--THE MINIMUM FUNDING STANDARD PROVIDED BY SECTION
412 //ANTE, P. 914.// SHALLL BE DETERMINED AS IF ALL PARTICIPANTS
IN THE PLAN WERE EMPLOYED BY A SINGLE EMPLOYER.
"(5) LIABILITY FOR FUNDING TAX.--FOR A PLAN YEAR THE LIABILITY
UNDER SECTION 4971 //ANTE, P. 920.// OF EACH EMPLOYER WHO
MAINTAINS THE PLAN SHALL BE DETERMINED IN A REASONABLE MANNER NOT
INCONSISTENT WITH REGULATIONS PRESCRIBED BY THE SECRETARY OR HIS
DELEGATE--,
"(A) FIRST ON BASIS OF THEIR RESPECTIVE DELINQUENCIES IN
MEETING REQUIRED EMPLOYER CONTRIBUTIONS UNDER THE PLAN, AND
"(B) THEN ON THE BASIS OF THEIR RESPECTIVE LIABILITIES FOR
CONTRIBUTIONS UNDER THE PLAN.
"(6) DEDUCTION LIMITATIONS.--EACH APPLICABLE LIMITATION
PROVIDED BY SECTION 401(A) SHALL BE DETERMINED AS IF ALL
PARTICIPANTS IN THE PLAN WERE EMPLOYED BY A SINGLE EMPLOYER. THE
AMOUNTS CONTRIBUTED TO OR UNDER THE PLAN BE EACH EMPLOYER WHO
MAINTAINS THE PLAN, FOR THE PORTION OF THIS TAXABLE YEAR WHICH IS
INCLUDED WITHIN SUCH A PLAN YEAR, SHALL BE CONSIDERED NOT TO
EXCEED SUCH A LIMITATION IF THE ANITCIPATED EMPLOYER CONTRIBUTIONS
FOR SUCH PLAN YEAR (DETERMINED IN A REASONABLE MANNER NOT
INCONSISTENT WITH REGULATIONS PRESCRIBED BY THE SECRETARY OR HIS
DELEGATE) DO NOT EXCEED SUCH LIMITATION. IF SUCH ANTICIPATED
CONTRIBUTIONS EXCEED SUCH A LIMITATION, THE PORTION OF EACH SUCH
EMPLOYER'S CONTRIBUTIONS WHICH IS NOT DEDUCTIBLE UNDER SECTION 404
SHALL BE DETERMINED IN ACCORDANCE WITH REGULATIONS PRESCRIBED BY
THE SECRETARY OR HIS DELEGATE.
ALLOCATIONS OF AMOUNTS UNDER PARAGRAPHS (4), (5), AND (6), AMONG THE
EMPLOYERS MAINTAINING THE PLAN, SHALL NOT BE INCONSISTENT WITH
REGULATIONS PRESCRIBED FOR THIS PURPOSE BY THE SECRETARY OR HIS
DELEGATE."
SUBPART B OF PART I OF SUBCHAPTER D OF CHAPTER I IS AMENDED BY
INSERTING AFTER SECTION 413 //ANTE, P. 924.// THE FOLLOWING NEW SECTION:
"(A) SERVICE FOR PREDECESSOR EMPLOYER.--FOR PURPOSES OF THIS PART--,
"(1) IN ANY CASE IN WHICH THE EMPLOYER MAINTAINS A PLAN OF A
PREDECESSOR EMPLOYER, SERVICE FOR SUCH PREDECESSOR SHALL BE
TREATED AS SERVICE FOR THE EMPLOYER, AND
"(2) IN ANY CASE IN WHICH THE EMPLOYER MAINTAINS A PLAN WHICH
IS NOT THE PLAN MAINTAINED BY A PREDECESSOR EMPLOYER, SERVICE FOR
SUCH PREDECESSOR SHALL, TO THE EXTENT PROVIDED IN REGULATIONS
PRESCRIBED BY THE SECRETARY OR HIS DELEGATE, BE TREATED AS SERVICE
FOR THE EMPLOYER.
"(B) EMPLOYEES OF CONTROLLED GROUP OF CORPORATIONS.--FOR PURPOSES OF
SECTION 401, 410, 411, AND 415, ALL EMPLOYEES OF ALL CORPORATIONS WHICH
ARE MEMBERS OF A CONTROLLED GROUP OF CORPORATIONS (WITHIN THE MEANING OF
SECTION 4563(A), DETERMINED WITHOUT REGARD TO SECTION 1563(A) (4) AND
(E) (3) (C)) //26 USC 401, ANTE, PP. 898, 901; POST, P. 979. 26 USC
1563.// SHALL BE TREATED AS EMPLOYED BY A SINGLE EMPLOYER. WITH RESPECT
TO A PLAN ADOPTED BY MORE THAN ONE SUCH CORPORATION, THE MINIMUM FUNDING
STANDARD OF SECTION 412, THE TAX IMPOSED BY SECTION 4971, //ANTE, P.
920.// AND THE APPLICABLE LIMITATIONS PROVIDED BY SECTION 404(A) SHALL
BE DETERMINED AS IF ALL SUCH EMPLOYERS WERE A SINGLE EMPLOYER, AND
ALLOCATED TO EACH EMPLOYER IN ACCORDANCE WITH REGULATIONS PRESCRIBED BY
THE SECRETARY OR HIS DELEGATE.
"(C) EMPLOYEES OF PARTNERSHIPS, PROPRIETORSHIPS, ETC., WHICH ARE
UNDER COMMON CONTROL.--FOR PURPOSES OF SECTIONS 401, 410, 411, AND 415,
UNDER REGULATIONS PRESCRIBED BY THE SECRETARY OR HIS DELEGATE, ALL
EMPLOYEES OF TRADES OR BUSINESSES (WHETHER OR NOT INCORPORATED) WHICH
ARE UNDER COMMON CONTROL SHALL BE TREATED AS EMPLOYED BY A SINGLE
EMPLOYER. THE REGULATIONS PRESCRIBED UNDER THIS SUBSECTION SHALL BE
BASED ON PRINCIPLES SIMILAR TO THE PRINCIPLES WHICH APPLY IN THE CASE OF
SUBSECTION (B).
"(D) GOVERNMENTAL PLAN.--FOR PURPOSES OF THIS PART, THE TERM
'GOVERNMENTAL PLAN' MEANS A PLAN ESTABLISHED AND MAINTAINED FOR ITS
EMPLOYEES BY THE GOVERNMENT OF THE UNITED STATES, BY THE GOVERNMENT OF
ANY STATE OR POLITICAL SUBDIVISION THEREOF, OR BY ANY AGENCY OR
INSTRUMENTALITY OF ANY OF THE FOREGOING. THE TERM 'GOVERNMENTAL PLAN'
ALSO INCLUDES ANY PLAN TO WHICH THE RAILROAD RETIREMENT ACT OF 1935 OR
1937 APPLIES AND WHICH IS FINANCED BY CONTRIBUTIONS REQUIRED UNDER THAT
ACT AND ANY PLAN OF AN INTERNATIONAL ORGANIZATIONS IMMUNITIES ACT (59
STAT. 669). //22 USC 288 NOTE.//
"(E) CHURCH PLAN.--,
"(1) IN GENERAL.--FOR PURPOSES OF THIS PART THE TERM 'CHURCH
PLAN' MEANS--,
"(A) A PLAN ESTABLISHED AND MAINTAINED FOR ITS EMPLOYEES BY A
BY A CHURCH OR BY A CONVENTION OR ASSOCIATION OF CHURCHES WHICH IS
EXEMPT FROM TAX UNDER SECTION 501. //26 USC 501.// OR
"(B) A PLAN DESCRIBED IN PARAGRAPH (3).
"(2) CERTAIN UNRELATED BUSINESS OR MULTIEMPLOYER PLANS.--, THE
TERM 'CHURCH PLAN' DOES NOT INCLUDE A PLAN--,
"(A) WHICH IS ESTABLISHED AND MAINTAINED PRIMARILY FOR THE
BENEFIT OF EMPLOYEES (OR THEIR BENEFICIARIES) OF SUCH CHURCH OR
CONVENTION OR ASSOCIATION OF CHURCHES WHO ARE EMPLOYED IN
CONNECTION WITH ONE OR MORE UNRELATED TRADES OR BUSINESSES (WITHIN
THE MEANING OF SECTION 513), OR
"(B) WHICH IS A PLAN MAINTAINED BY MORE THAN ONE EMPLOYER, IF
ONE OR MORE OF THE EMPLOYERS IN THE PLAN IS NOT A CHURCH (OR A
CONVENTION OR ASSOCIATION OF CHURCHES) WHICH IS EXEMPT FROM TAX
UNDER SECTION 501.
"(3) SPECIAL TEMPORARY RULE FOR CERTAIN CHURCH AGENCIES UNDER
CHURCH PLAN--,
"(A) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (2) (B), A
PLAN IN EXISTENCE ON JANUARY 1, 1974, SHALL BE TREATED AS A CHURCH
PLAN IF IT IS ESTABLISHED AND MAINTAINED BY A CHURCH OR CONVENTION
OR ASSOCIATION OF CHURCHES AND ONE OR MORE AGENCIES OF SUCH CHURCH
(OR CONVENTIONS OR ASSOCIATION) FOR THE EMPLOYEES OF SUCH CHURCH
(OR CONVENTION OR ASSOCIATION) AND THE EMPLOYEES OF ONE OR MORE
AGENCIES OF SUCH CHURCH (OR CONVENTION OR ASSOCIATION), AND IF
SUCH CHURCH (OR CONVENTION OR ASSOCIATION) AND EACH SUCH AGENCY IS
EXEMPT FROM TAX UNDER SECTION 501. //26 USC 501.//
"(B) SUBPARAGRAPH (A) SHALL NOT APPLY TO ANY PLAN MAINTAINED
FOR EMPLOYEES OF AN AGENCY WITH RESPECT TO WHICH THE PLAN WAS NOT
MAINTAINED ON JANUARY 1, 1974.
"(C) SUBPARAGRAPH (A) SHALL NOT APPLY WITH RESPECT TO ANY PLAN
FOR ANY PLAN YEAR BEGINNING AFTER DECEMBER 31, 1982.
"(F) MULTIEMPLOYER PLAN.--,
"(1) IN GENERAL.--FOR PURPOSES OF THIS PART, THE TERM
'MULTIEMPLOYER PLAN' MEANS A PLAN--,
"(A) TO WHICH MORE THAN ONE EMPLOYER IS REQUIRED TO CONTRIBUTE,
"(B) WHICH IS MAINTAINED PURSUANT TO A COLLECTIVE-BARGAINING
AGREEMENT BETWEEN EMPLOYEE REPRESENTATIVES AND MORE THAN ONE
EMPLOYER,
"(C) UNDER WHICH THE AMOUNT OF CONTRIBUTIONS MADE UNDER THE
PLAN FOR A PLAN YEAR BY EACH EMPLOYER MAKING SUCH CONTRIBUTIONS IS
LESS THAN 50 PERCENT OF THE AGGREGATE AMOUNT OF CONTRIBUTIONS
UNDER THE PLAN FOR THAT PLAN YEAR BY ALL EMPLOYERS MAKING SUCH
CONTRIBUTIONS,
"(D) UNDER WHICH BENEFITS ARE PAYABLE WITH RESPECT TO EACH
PARTICIPANT WITHOUT REGARD TO THE CESSATION OF CONTRIBUTIONS BY
THE EMPLOYER WHO EMPLOYED THAT PARTICIPANT EXCEPT TO THE EXTENT
THAT SUCH BENEFITS ACCRUED AS A RESULT OF SERVICE WITH THE
EMPLOYER BEFORE SUCH EMPLOYER WAS REQUIRED TO CONTRIBUTE TO SUCH
PLAN, AND
"(E) WHICH SATISFIES SUCH OTHER REQUIREMENTS AS THE SECRETARY
OF LABOR MAY BY REGULATIONS PRESCRIBE.
"(2) SPECIAL RULES.--FOR PURPOSES OF THIS SUBSECTION--,
"(A) IF A PLAN IS A MULTIEMPLOYER PLAN WITHIN THE MEANING OF
PARAGRAPH (1) FOR ANY PLAN YEAR, SUBPARAGRAPH (C) OF PARAGRAPH (1)
SHALL BE APPLIED BY SUBSTITUTING '75 PERCENT' FOR '50 PERCENT' FOR
EACH SUBSEQUENT PLAN YEAR UNTIL THE FIRST PLAN YEAR FOLLOWING A
PLAN YEAR IN WHICH THE PLAN HAD ONE EMPLOYER WHO MADE
CONTRIBUTIONS OF 75 PERCENT OR MORE OF THE AGGREGATE AMOUNT
CONTRIBUTIONS MADE UNDER THE PLAN FOR THAT PLAN YEAR BY ALL
EMPLOYERS MAKING SUCH CONTRIBUTIONS.
"(B) ALL CORPORATIONS WHICH ARE MEMBERS OF A CONTROLLED GROUP
OF CORPORATIONS (WITHIN THE MEANING OF SECTION 1563(A), DETERMINED
WITHOUT REGARD TO SECTION 1563 (E) (3) (C)) //26 USC 1563.// SHALL
BE DEEMED TO BE ONE EMPLOYER.
"(G) PLAN ADMINISTRATOR.--FOR PURPOSES OF THIS PART, THE TERM 'PLAN
ADMINISTRATOR' MEANS--,
"(1) THE PERSON SPECIFICALLY SO DESIGNATED BY THE TERMS OF THE
INSTRUMENT UNDER WHICH THE PLAN IS OPERATED;
"(2) IN THE ABSENCE OF A DESIGNATION REFERRED TO IN PARAGRAPH
(1)--,
"(A) IN THE CASE OF A PLAN MAINTAINED BY A SINGLE EMPLOYER,
SUCH EMPLOYER,
"(B) IN THE CASE OF A PLAN MAINTAINED BY TWO OR MORE EMPLOYERS
OR JOINTLY BY ONE OR MORE EMPLOYERS AND ONE OR MORE EMPLOYEE
ORGANIZATIONS, THE ASSOCIATION, COMMITTEE, JOINT BOARD OF
TRUSTEES, OR OTHER SIMILAR GROUP OF REPRESATIVES OF THE PARTIES
WHO MAINTAINED THE PLAN, OR
"(C) IN ANY CASE TO WHICH SUBPARAGRAPH (A) OR (B) DOES NOT
APPLY, SUCH OTHER PERSON AS THE SECRETARY OR HIS DELEGATE MAY BY
REGULATION, PRESCRIBE.
"(H) TAX TREATMENT OF CERTAIN CONTRIBUTIONS--,
"(1) IN GENERAL.--EFFECTIVE WITH RESPECT TO TAXABLE YEARS
BEGINNING AFTER DECEMBER 31, 1973, FOR PURPOSES OF THIS TITLE, ANY
AMOUNT CONTRIBUTED--,
"(A) TO AN EMPLOYEES' TRUST DESCRIBED IN SECTION 401(A), //26
USC 401.// OR
"(B) UNDER A PLAN DESCRIBED IN SECTION 403(A) OR 405(A), //26
USC 403,405.// SHALL NOT BE TREATED AS HAVING BEEN MADE BY THE
EMPLOYER IF IT IS DESIGNATED AS AN EMPLOYEE CONTRIBUTION.
"(2) DESIGNATION BY UNITS OF GOVERNMENT.--FOR PURPOSES OF
PARAGRAPH (1), IN THE CASE OF ANY PLAN ESTABLISHED BY THE
GOVERNMENT OF ANY STATE OR POLITICAL SUBDIVISION THEREOF, OR BY
ANY AGENCY OR INSTRUMENTALITY OF ANY OF THE FOREGOING, WHERE THE
CONTRIBUTIONS OF EMPLOYING UNITS ARE DESIGNATED AS EMPLOYEE
CONTRIBUTIONS BUT WHERE ANY EMPLOYING UNIT PICKS UP THE
CONTRIBUTIONS, THE CONTRIBUTIONS SO PICKED UP SHALL BE TREATED AS
EMPLOYER CONTRIBUTIONS.
"(I) DEFINED CONTRIBUTION PLAN.--FOR PURPOSES OF THIS PART, THE TERM
'DEFINED CONTRIBUTION PLAN' MEANS A PLAN WHICH PROVIDES FOR AN
INDIVIDUAL ACCOUNT FOR EACH PARTICIPANT AND FOR BENEFITS BASES SOLELY ON
THE AMOUNT CONTRIBUTED TO THE PARTICIPANT'S ACCOUNT, AND ANY INCOME,
EXPENSES, GAINS AND LOSSES, AND ANY FORFEITURES OF ACCOUNTS OF OTHER
PARTICIPANTS WHICH MAY BE ALLOCATED TO SUCH PARTICIPANT'S ACCOUNT.
"(J) DEFINED BENEFIT PLAN.--FOR PURPOSES OF THIS PART, THE TERM
'DEFINED BENEFIT PLAN' MEANS ANY PLAN WHICH IS NOT A DEFINED
CONTRIBUTION PLAN.
"(K) CERTAIN PLANS.--A DEFINED BENEFIT PLAN WHICH PROVIDES A BENEFIT
DERIVED FROM EMPLOYER CONTRIBUTIONS WHICH IS BASED PARTLY ON THE BALANCE
OF THE SEPARATE ACCOUNT OF A PARTICIPANT SHALL--,
"(1) FOR PURPOSES OF SECTION 401 //ANTE, P. 898.// (RELATING TO
MINIMUM PARTICIPATION STANDARDS), BE TREATED AS A DEFINED
CONTRIBUTION PLAN,
"(2) FOR PURPOSES OF SECTIONS 411(A) (7) (A) //ANTE, P. 901.//
(RELATING TO MINIMUM VESTING STANDARDS) AND 415 //POST, P. 979.//
(RELATING TO LIMITATIONS ON BENEFITS AND CONTRIBUTIONS UNDER
QUALIFIED PLANS), TO BE TREATED AS CONSISTING OF A DEFINED
CONTRIBUTION PLAN TO THE EXTENT BENEFITS ARE BASED ON THE SEPARATE
ACCOUNT OF A PARTICIPANT AND AS A DEFINED BENEFIT PLAN WITH
RESPECT TO THE REMAINING PORTION OF BENEFITS UNDER THE PLAN, AND
"(3) FOR PURPOSES OF SECTION 4975 //POST, P. 971.// (RELATING
TO TAX ON PROHIBITED TRANSACTIONS), BE TREATED AS A DEFINED
BENEFIT PLAN.
"(1) MERGERS AND CONSOLIDATIONS OF PLANS OR TRANSFERS OF PLAN
ASSETS.--A TRUST WHICH FORMS A PARTOF A PLAN SHALL NOT CONSTITUTE A
QUALIFIED TRUST UNDER SECTION 401 AND A PLAN SHALL BE TREATED AS NOT
DESCRIBED IN SECTION 403(A) OR 405 UNLESS IN THE CASE OF ANY MERGER OR
CONSOLIDATION OF THE PLAN WITH, OR IN THE CASE OF ANY TRANSFER OF ASSETS
OR LIABILITIES OF SUCH PLAN TO, ANY OTHER TRUST PLAN AFTER THE DATE OF
THE ENACTMENT OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
//ANTE, P. 829.// EACH PARTICIPANT IN THE PLAN WOULD (IF THE PLAN THEN
TERMINATED) RECEIVE A BENEFIT IMMEDIATELY AFTER THE MERGER,
CONSOLIDATION, OR TRANSFER WHICH IS EQUAL TO OR GREATER THAN THE BENEFIT
HE WOULD HAVE BEEN ENTITLED TO RECEIVE IMMEDIATELY BEFORE THE MERGER,
CONSOLIDATION, OR TRANSFER (IF THE PLAN HAD THEN TERMINATED). THIS
PARAGRAPH SHALL APPLY IN THE CASE OF A MULTIEMPLOYER PLAN ONLY TO THE
EXTENT DETERMINED BY THE PENSION BENEFIT GUARANTY CORPORATION."
(A) CONFORMING AMENDMENTS.--,
(1) SECTION 275(A) //26 USC 275.// (RELATING TO DENIAL OF
DEDUCTION FOR CERTAIN TAXES) IS AMENDED BY ADDING AT THE END
THEREOF THE FOLLOWING NEW PARAGRAPH:
"(6) TAXES IMPOSED BY CHAPTER 42 AND CHAPTER 43." //26 USC
4940.//
(2) SECTION 401(A) //ANTE, P. 920.// (RELATING TO REQUIREMENTS
FOR QUALIFICATION) IS AMENDED--,
(A) BY STRIKING OUT PARAGRAPH (3) AND INSERTING IN LIEU
THEREOF:
"(3) IF THE PLAN OF WHICH SUCH TRUST IS A PART SATISFIES THE
REQUIREMENTS OF SECTION 410 //ANTE, P. 898.// (RELATING TO MINIMUM
PARTICIPATION STANDARDS); AND",
(B) BY STRIKING OUT "PARAGRAPH (3) (B) OR (4)" IN PARAGRAPH (5)
AND INSERTING IN LIEU THEREOF "PARAGRAPH (4) OR SECTION 410 (B)
(WITHOUT REGARD TO PARAGRAPH (1) (A) THEREOF)", AND
(C) BY STRIKING OUT PARAGRAPH (7) AND INSERTING IN LIEU
THEREOF:
"(7) A TRUST SHALL NOT CONSTITUTE A QUALIFIED TRUST UNDER THIS
SECTION UNLESS THE PLAN OF WHICH SUCH TRUST IS A PART SATISFIES
THE REQUIREMENTS OF SECTION 411 //ANTE, P. 901.// (RELATING TO
MINIMUM VESTING STANDARDS)."
(3) SECTION 404(A) (2) //26 USC 404.// (RELATING TO DEDUCTION
FOR CONTRIBUTIONS OF AN EMPLOYER TO AN EMPLOYEE'S ANNUITY PLAN) IS
AMENDED BY STRIKING OUT "AND (8)," AND INSERTING IN LIEU THEREOF
"(8), (11), (12), (13), (14), AND (15)".
(4) SECTION 406(B) (1) (RELATING TO CERTAIN EMPLOYEES OF
FOREIGN SUBSIDIARIES) IS AMENDED BY STRIKING OUT "PARAGRAPHS (3)
(B) AND (4) OF SECTION 401(A)" AND INSERTING IN LIEU THEREOF
"SECTION 401(A) (4) AND SECTION 410(B) //POST, P. 938.// (WITHOUT
REGARD TO PARAGRAPH (1) (A) THEREOF)".
(5) SECTION 407(B) (1) (RELATING TO CERTAIN EMPLOYEES OF
DOMESTIC SUBSIDIARIES ENGAGED IN BUSINESS OUTSIDE THE UNITED
STATES) IS AMENDED BY STRIKING OUT "PARAGRAPH (3) (B) AND (4) OF
SECTION 401( A)" AND INSERTING IN LIEU THEREOF "SECTION 401(A) (4)
SECTION 410(B) (WITHOUT REGARD TO PARAGRAPH (1) (A) THEREOF)".
(6) SECTION 805(D) (C) (RELATING TO DIFINITION OF PENSION PLAN
RESERVES) IS AMENDED BY STRIKING OUT "AND (8)" AND INSERTING IN
LIEU THERE "(8), (11), (12), (13), (14), AND (15)".
(7) SECTION 6161(B) (1) //26 USC 6161.// (RELATING TO
EXTENSIONS OF TIME FOR PAYING TAX) IS AMENDED BY STRIKING OUT "OR
42" AND INSERTING IN LIEU THEREOF "42 OR 43". THE SECOND SENTENCE
OF SECTION 6161(B) IS AMENDED BY STRIKING OUT "OR 42" AND
INSERTING IN LIEU THEREOF "42, OR CHAPTER 43".
(8) SECTION 6201(D) (RELATING TO ASSESSMENT AUTHORITY) IS
AMENDED BY STRIKING OUT "AND CHAPTER 42" AND INSERTING IN LIEU
THEREOF ", CHAPTER 42, AND CHAPTER 43".
(9) SECTION 6211 (DEFINING DEFICIENCY) IS AMENDED--,
(A) BY STRIKING OUT SO MUCH OF SUBSECTION (A) AS PRECEDES
PARAGRAPH (1) THEREOF AND INSERTING IN LIEU THEREOF THE FOLLOWING:
(B) BY STRIKING OUT "CHAPTER 42" IN SUBSECTION (3) (2) //ANTE,
P. 920.// AND INSERTING IN LIEU THEREOF "CHAPTER 42 OR 43".
"(A) IN GENERAL.--FOR PURPOSES OF THIS TITLE IN THE CASE OF INCOME,
ESTATE, AND GIFT TAXES IMPOSED BY SUBTITLES A AND B AND EXCISE TAXES
IMPOSED BY CHAPTERS 42 AND 43, //26 USC 1, 2001.// THE TERM 'DEFICIENCY'
MEANS THE AMOUNT BY WHICH THE TAX IMPOSED BY SUBTITLE A OR B, OR CHAPTER
42 OR 43, //26 USC 1, 2001, 4940.// EXCEEDS THE EXCESS OF--"; AND
(B) BY STRIKING OUT "CHAPTER 42" IN SUBSECTION (B) (2) //ANTE
P. 920.// AND INSERTING IN LIEU THEREOF "CHAPTER 42 OR 43".
(10) SECTION 6212 //26 USC 6212.// (RELATING TO NOTICE OF
DEFICIENCY) IS AMENDED--,
(A) BY STRIKING OUT "CHAPTER 42" IN SUBSECTION (B) (1) AND
INSERTING IN LIEU THEREOF "CHAPTER 42 OR 43",
(B) BY STRIKING OUT "OR CHAPTER 42, OR CHAPTER 43",
(C) BY STRIKING OUT "CHAPTER 42, AND THIS CHAPTER" IN
SUBSECTION (B) (1) AND INSERTING IN LIEU THEREOF "CHAPTER 42,
CHAPTER 43, AND THIS CHAPTER", AND
(D) BY STRIKING OUT "OF THE SAME DECEDENT", IN SUBSECTION (C)
AND INSERTING IN LIEU THEREOF "OF THE SAME DECEDENT, OF CHAPTER 43
TAX FOR THE SAME TAXABLE YEARS,".
(11) SECTION 6213 (RELATING TO RESTRICTIONS APPLICABLE TO
DEFICIENCIES AND PETITION TO TAX COURT) IS AMENDED--,
(A) BY STRIKING OUT "OR CHAPTER 42" IN SUBSECTION (A) AND
INSERTING IN LIEU THEREOF "CHAPTER 42 OR 43",
(B) BY STRIKING OUT THE HEADING OF SUBSECTION (E) AND INSERTING
IN LIEU THEREOF:
"(E) SUSPENSION OF FILING PERIOD FOR CERTAIN EXCISE TAXES.--",
(C) BY STRIKING OUT OR 4945 (RELATING TO TAXES ON TAXABLE
EXPENDITURES)" IN SUBSECTION (E) AND INSERTING IN LIEU THEREOF,
"4945 //ANTE, P. 920.// (RELATING TO TAXES ON TAXABLE
EXPENDITURES), 4971 (RELATING TO EXCISE TAXES ON FAILURE TO MEET
MINIMUM FUNDING STANDARD), 4975 //POST, P. 971.// (RELATING TO
EXCISE TAXES ON PROHIBITED TRANSACTIONS)"; AND
(D) BY STRIKING OUT "OR 4945(H) (2)" IN SUBSECTION (E) AND
INSERTING IN LIEU THEREOF", 4945(I) (2), 4971(C) (3), OR 4975(F)
(4),".
(12) SECTION 6214 (RELATING TO DETERMINATIONS BY TAX COURT) IS
AMENDED--,
(A) BY AMENDING THE HEADING OF SUBSECTION (C) TO READ AS
FOLLOWS:
"(C) TAXES IMPOSED BY SECTION 507 OR CHAPTER 42 OR 43.--",
(B) BY INSERTING AFTER "CHAPTER 42" EACH PLACE IT APPEARS IN
SUBSECTION (C) "OR 43"; AND
(C) BY STRIKING OUT "CHAPTER 42" IN SUBSECTION (D) AND
INSERTING IN LIEU THEREOF "CHAPTER 42 OR 43".
(13) SECTION 6344(A) (1) (RELATING TO CROSS REFERENCES) IS
AMENDED BY STRIKING OUT "CHAPTER 42" AND INSERTING IN LIEU THEREOF
"CHAPTER 42 OR 43".
(14) SECTION 6501(E) (3) (RELATING TO LIMITATIONS ON ASSESSMENT
AND COLLECTION) IS AMENDED BY STRIKING OUT "CHAPTER42 OR 43".
(15) SECTION 6503 (RELATING TO SUSPENSION OF RUNNING OF PERIOD
OF LIMITATIONS) IS AMENDED--,
(A) BY STRIKING OUT "CHAPTER 42 TAXES)" IN SUBSECTION (A) (1)
AND INSERTING IN LIEU THEREOF "CERTAIN EXCISE TAXES)" AND
(B) BY INSERTING AFTER "SECTION 507" IN SUBSECTION (H) "OR
SECTION 4971 OR SECTION 4975", AND BY STRIKING OUT "OR 4945(H)
(2)" IN SUBSECTION (H) AND INSERTING IN LIEU THEREOF "4945 (I)
(2), 4971(C) (3), OR 4975(F) (4)".
(16) SECTION 6512 (RELATING TO LIMITATIONS IN CASE OF PETITION
TO TAX COURT) IS AMENDED BY STRIKING OUT "CHAPTER 42" EACH PLACE
IT APPEARS THEREIN AND INSERTING IN LIEU THEREOF "CHAPTER 42 OR
43".
(17) SECTION 6601(D) (RELATING TO INTEREST ON UNDERPAYMENT,
NONPAYMENT, OR EXTENSIONS OF TIME FOR PAYMENT OF TAX) IS AMENDED
BY--,
(A) STRIKING OUT IN THE HEADING THEREOF "CHAPTER 42" AND
INSERTING IN LIEU THEREOF "CHAPTER 42 OR 43", //26 USC 4940.// AND
(B) STRIKING OUT "CHAPTER 42" //ANTE, P. 920.// AND INSERTING
IN LIEU THEREOF "CERTAIN EXCISE".
(18) SECTION 6653(C) (1) //26 USC 6653.// RELATING TO INCOME,
ESTATE, GIFT, AND CHAPTER 42 TAXES) IS AMENDED BY STRIKING OUT
"CHAPTER 42" EACH PLACE IT APPEARS THEREIN (INCLUDING THE HEADING)
AND INSERTING IN LIEU THEREOF "CERTAIN EXCISE".
(19) SECTION 6659(B) (RELATING TO APPLICABLE RULES) IS AMENDED
BY STRIKING OUT "CHAPTER 42" AND INSERTING IN LIEU THEREOF
"CERTAIN EXCISE".
(20) SECTION 6676(B) (RELATING TO FAILURE TO SUPPLY IDENTIFYING
NUMBERS) IS AMENDED BY STRIKING OUT "CHAPTER 42" AND INSERTING IN
LIEU THEREOF "AND CERTAIN EXCISE".
(21) SECTION 6677(B) (RELATING TO FAILURE TO FILE INFORMATION
RETURNS WITH RESPECT TO CERTAIN FOREIGN TRUSTS) IS AMENDED BY
STRIKING OUT "CHAPTER 42" AND INSERTING IN LIEU THEREOF "AND
CERTAIN EXCISE".
(22) SECTION 6679(B) (RELATING TO FAILURE TO FILE RETURNS AS TO
ORGANIZATION OR REORGANIZATION OF FOREIGN CORPORATIONS AND AS TO
ACQUISITIONS OF THEIR STOCK) IS AMENDED BY STRIKING OUT "CHAPTER
42" AND INSERTING IN LIEU THEREOF "AND CERTAIN EXCISE".
(23) SECTION 6682(B) (RELATING TO FALSE INFORMATION WITH
RESPECT TO WITHHOLDING ALLOWANCES BASED ON ITEMIZED DEDUCTIONS) IS
AMENDED BY STRIKING OUT "CHAPTER 42" AND INSERTING IN LIEU THEREOF
"AND CERTAIN EXCISE".
(24) THE HEADING OF SECTION 6861 (RELATING TO JEOPARDY
ASSESSMENTS OF INCOME, ESTATE, AND GIFT TAXES) IS AMENDED BY
STRIKING OUT "AND GIFT TAXES.", AND INSERTING IN LIEU THEREOF ",
GIFT, AND CERTAIN EXCISE TAXES.".
(25) SECTION 6862 (RELATING TO JEOPARDY ASSESSMENT OF TAXES
OTHER THAN INCOME, ESTATE, AND GIFT TAXES) IS AMENDED--,
(A) BY STRIKING OUT "AND GIFT TAXES.", IN THE HEADING AND
INSERTING IN LIEU THEREOF, "GIFT, AND CERTAIN EXCISE TAXES.",
(B) BY STRIKING OUT "AND GIFT TAX)" IN SUBSECTION (A) AND
INSERTING IN LIEU THEREOF "GIFT TAX, AND CERTAIN EXCISE TAXES)"
(26) SECTION 7422 (RELATING TO CIVIL ACTIONS FOR REFUND) IS
AMENDED--,
(A) BY STRIKING OUT "CHAPTER 42" AND INSERTING IN LIEU THEREOF
"CHAPTER 42 OR 43" IN SUBSECTION (E),
(B) BY STRIKING OUT "CHAPTER 42" IN THE HEADING OF SUBSECTION
(G) AND INSERTING IN LIEU THEREOF "CHAPTER 42 OR 43".
(C) BY STRIKING OUT "OR 4945, 4971, OR 4975", //26 USC 4945.//
(D) BY STRIKING OUT "SECTION 4945(A) //ANTE, P. 920.//
(RELATING TO INITIAL TAXES ON TAXABLE EXPENDITURES)" IN SUBSECTION
(G) (1) //POST, P. 971.// AND INSERTING IN LIEU THEREOF "SECTION
4945(A) (RELATING TO INITIAL TAXES ON TAXABLE EXPENDITURES),
4971(A) (RELATING TO INITIAL TAX ON FAILURE TO MEET MINIMUM
FUNDING STANDARD), 4975(A) (RELATING TO INITIAL TAX ON PROHIBITED
TRANSACTIONS)",
(E) BY STRIKING OUT "OR SECTION 4945(B) (RELATING TO ADDITIONAL
TAXES ON TAXABLE EXPENDITURES)" IN SUBSECTION (G) (1) AND
INSERTING IN LIEU THEREOF "SECTION 4945(B) (RELATING TO ADDITIONAL
TAXES ON TAXABLE EXPENTITURES), SECTION 4971(B) (RELATING TO
ADDITIONAL TAX ON FAILURE TO MEET MINIMUM FUNDINGS STANDARD), OR
SECTION 4975(B) (RELATING TO ADDITIONAL TAX ON PROHIBITED
TRANSACTIONS)", AND
(F) BY STRIKING OUT "OR 4945" IN PARAGRAPHS (2) AND (3) OF
SUBSECTION (G) AND INSERTING IN LIEU THEREOF "4945, 4971, OR
4975". //26 USC 4945.//
(27) SECTION 6204(B) (RELATING TO SUPPLEMENTAL ASSESSMENTS) IS
AMENDED BY STRIKING OUT "AND GIFT TAXES" AND INSERTING IN LIEU
THEREOF "GIFT, AND CERTAIN TAXES".//ANTE, P. 920; POST, P.
971.//
(B) CLERICAL AMENDMENTS.--,
(1) PART I OF SUBCHAPTER D OF CHAPTER 1 IS AMENDED BY INSERTING
AFTER THE HEADING AND BEFORE THE TABLE OF SECTIONS THE FOLLOWING:
"SUBPART A. GENERAL RULE.
"SUBPART B. SPECIAL RULES.
(2) THE TABLE OF CHAPTERS FOR SUBTITLE D IS AMINDED BY ADDING
AT THE END THEREOF THE FOLLOWING NEW ITEM:
"CHAPTER 43. QUALIFIED PENSION, ETC., PLANS."
(3) THE TABLE OF SECTIONS FOR SUBCHAPTER B OF THE SECTION
CAPTIONED "ASSESSABLE PENALTIES WITH RESPECT TO INFORMATION
REQUIRED TO BE FURNISHED UNDER SECTION 7654" AND INSERTING IN LIEU
THEREOF:
"SEC. 6688. ASSESSABLE PENSLTIES WITH RESPECT TO INFORMATION
REQUIRED TO BE FURNISHED UNDER SECTION 7654."
(4) SUBCHAPTER B OF CHAPTER 68 IS AMENDED BY STRIKING OUT THE
HEADING OF THE SECTION IMMEDIATELY PRECEDING SECTION 6689 AND
INSERTING IN LIEU THEREOF:
INFORMATION
REQUIRED TO BE FURNISHED UNDER SECTION 7654."
(5) THE TABLE OF SECTION FOR PART II OF SUBCHAPTER A OF CHAPTER
70 IS AMENDED BY STRIKING OUT "AND GIFT TAXES" IN THE ITEMS
RELATING TO SECTION 6861 AND 6862 AND INSERTING IN LIEU THEREOF
"GIFT, AND CERTAIN EXCISE TAXES".
//26 USC 410 NOTE.//
(A) GENERAL RULE.--EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, THE
AMENDMENTS MADE BY THIS PART SHALL APPLY FOR PLAN YEARS BEGINNING AFTER
THE DATE OF THE ENACTMENT OF THIS ACT.
(B) EXISTING PLANS.--EXCEPT AS OTHERWISE PROVIDED IN SUBSECTIONS (C)
THROUGH (H), IN THE CASE OF A PLAN IN EXISTENCE ON JANUARY 1, 1974, THE
AMENDMENTS MADE BY THIS PART SHALL APPLY FOR PLAN YEARS BEGINNING AFTER
DECEMBER 31, 1975.
(C) EXISTING PLANS UNDER COLLECTIVE BARGAINING AGREEMENTS--,
(1) APPLICATION OF VESTING RULES TO CERTAIN PLAN PROVISIONS.--,
(A) WAIVER OF APPLICATION.--IN THE CASE OF A PLAN MAINTAINED ON
JANUARY 1, 1974, PURSUANT TO ONE OR MORE AGREEMENTS WHICH THE
SECRETARY OF LABOR FINDS TO BE COLLECTIVE BARGAINING AGREEMENTS
BETWEEN EMPLOYEE REPRESENTATIVES AND ONE OR MORE EMPLOYERS, DURING
THE SPECIAL TEMPORARY WAIVER PERIOD THE PLAN SHALL NOT BE TREATED
AS NOT MEETING THE REQUIREMENTS OF SECTION 411(B) (1) OR (2) OF
THE INTERNAL REVENUE CODE OF 1954 SOLELY BY REASON OF A
SUPPLEMENTARY OR SPECIAL PLAN //ANTE, P. 901.// PROVISION (WITHIN
THE MEANING OF SUBPARAGRAPH (D)).
(B) SPECIAL TEMPORARY WAIVER PERIOD.--FOR PURPOSES OF THIS
PARAGRAPH. THE TERM "SPECIAL TEMPORARY WAIVER PERIOD" MEANS PLAN
YEARS BEGINNING AFTER DECEMBER 31, 1975, AND BEFORE THE EARLIER
OF--
(I) THE DATE ON WHICH THE LAST OF THE COLLECTIVE BARGAINING
AGREEMENTS RELATING TO THE PLAN TERMINATES (DETERMINED WITHOUT
REGARD TO ANY EXTENSION THEREOF AGREED TO AFTER THE DATE OF THE
ENACTMENT OF THIS ACT), OR
(II) JANUARY 1, 1981. FOR PURPOSES OF CLAUSE (I), ANY PLAN
AMENDMENT MADE PURSUANT TO A COLLECTIVE BARGAINING AGREEMENT
RELATING TO THE PLAN WHICH AMENDS THE PLAN SOLELY TO CONFORM TO
ANY REQUIREMENT CONTAINED IN THIS ACT SHALL NOT BE TREATED AS A
TERMINATION OF SUCH COLLECTIVE BARGAINING AGREEMENT.
(C) DETERMINATION BY SECRETARY OF LABOR REQUIRED.--
SUBPARAGRAPH (A) SHALL NOT APPLY UNLESS THE SECRETARY OF LABOR
DETERMINES THAT THE PARTICIPATION AND VESTING RULES IN EFFECT ON
THE DATE OF THE ENACTMENT OF THIS ACT ARE NOT LESS FAVORABLE TO
THE EMPLOYEES, IN THE AGGREGATE, THAN THE RULES PROVIDED UNDER
SECTIONS 410 AND 411 OF THE INTERNAL REVENUE CODE OF 1954.
//ANTE, PP. 898, 901.//
(D) SUPPLEMENTARY OR SPECIAL PLAN PROVISIONS.--FOR PURPOSES OF
THIS PARAGRAPH, THE TERM "SUPPLEMENTARY OR SPECIAL PLAN PROVISION"
MEANS ANY PLAN PROVISION WHICH--,
(I) PROVIDES SUPPLEMENTARY BENEFITS, NOT IN EXCESS OF ONE-THIRD
OF THE BASIC BENEFIT, IN THE FORM OF AN ANNUITY FOR THE LIFE OF
THE PARTICIPANT, OR
(II) PROVIDES THAT, UNDER A CONTRACTUAL AGREEMENT BASED ON
MEDICAL EVIDENCE AS TO THE EFFECTS OF WORKING IN AN ADVERSE
ENVIORMENT FOR AN EXTENDED PERIOD OF TIME, A PARTICIPANT HAVING 25
YEARS OF SERVICE IS TO BE TREATED AS HAVING 30 YEARS OF SERVICE.
(2) APPLICATION OF FUNDING RULES.--,
"(A) IN GENERAL.--IN THE CASE OF A PLAN MAINTAINED ON JANUARY
1, 1974, PURSUANT TO ONE OR MORE AGREEMENTS WHICH THE SECRETARY OF
LABOR FINDS TO BE COLLECTIVE BARGAINING AGREEMENTS BETWEEN
EMPLOYEE REPRESENTATIVES AND ONE OR MORE EMPLOYERS, SECTION 412 OF
THE INTERNAL REVENUE CODE OF 1954, //ANTE, P. 914.// AND OTHER
AMENDMENTS MADE BY THIS PART TO THE EXTENT SUCH AMENDMENTS RELATE
TO SUCH SECTION 412, SHALL NOT APPLY DURING THE SPECIAL TEMPORARY
WAIVER PERIOD (AS DEFINED IN PARAGRAPH (1) (B)).
(B) WAIVER OF UNDERFUNDING.--IN THE CASE OF A PLAN MAINTAINED
ON JANUARY 1, 1974, PURSUANT TO ONE OR MORE AGREEMENTS WHICH THE
SECRETARY OF LABOR FINDS TO BE COLLECTIVE BARGAINING AGREEMENTS
BETWEEN EMPLOYEE REPRESENTATIVES AND ONE OR MORE EMPLOYERS, IF BY
REASON OF SUBPARAGRAPH (A) THE REQUIREMENTS OF SECTION 401(A) (7)
OF THE INTERNAL REVENUE CODE OF 1954 //26 USC 401.// APPLY WITHOUT
REGARD TO THE AMENDMENT OF SUCH SECTION 401(A) (7) BY SECTION
1016(A) (2) (C) OF THIS ACT, //26 USC 1016.// THE PLAN SHALL NOT
BE TREATED AS NOT MEETING SUCH REQUIREMENTS SOLELY BY REASON OF
THE APPLICATION OF THE AMENDMENTS MADE BY SECTIONS 1011 1012 OF
THIS ACT OR RELATED AMENDMENTS MADE BY THIS PART.
(C) LABOR ORGANIZATION CONVENTIONS.--IN THE CASE OF A PLAN
MAINTAINED BY A LABOR ORGANIZATION, WHICH IS EXEMPT FROM TAX UNDER
SECTION 501(C) (5) OF THE INTERNAL REVENUE CODE OF 1954, THEIR
BENEFICIARIES, SECTION 412 OF SUCH CODE //ANTE, P. 914.// AND
OTHER AMENDMENTS MADE BY THIS PART TO THE EXTENT SUCH AMENDMENTS
RELATE TO SUCH SECTION 412, SHALL BE APPLIED BY //26 USC 501.//
EXCLUSIVELY FOR THE BENEFIT OF ITS EMPLOYEES AND SUBSTITUTING FOR
THE TERM "DECEMBER 31, 1975" IN SUBSECTION (B), THE EARLIER OF--,
(I) THE DATE ON WHICH THE SECOND CONVENTION OF SUCH LABOR
ORGANIZATION HELD AFTER THE DATE OF THE ENACTMENT OF THIS ACT
ENDS, OR
(II) DECEMBER 31, 1980,
BUT IN NO EVENT SHALL A DATE EARLIER THAN THE LATER OF DECEMBER 31,
1975, OR THE DATE DETERMINED UNDER SUBPARAGRAPH (A) OR (B) BE
SUBSTITUTED.
(D) EXISTING PLANS MAY ELECT NEW PROVISIONS.--IN THE CASE OF A PLAN
IN EXISTENCE ON JANUARY 1, 1974, THE PROVISIONS OF THE INTERNAL REVENUE
CODE OF 1954 //26 USC 1 ET SEQ.// RELATING TO PARTICIPATION, VESTING,
FUNDING, AND FORM OF BENEFIT (AS IN EFFECT FROM TIME TO TIME) SHALL
APPLY IN THE CASE OF THE PLAN YEAR (WHICH BEGINS AFTER THE DATEOF THE
ENACTMENT OF THIS ACT BUT BEFORE THE APPLICABLE EFFECTIVE DATE
DETERMINED UNDER SUBSECTION (B) OR (C)) SELECTED BY THE PLAN
ADMINISTRATOR AND TO ALL SUBSEQUENT PLAN YEARS, IF THE PLAN
ADMINISTRATOR ELECTS (IN SUCH MANNER AND AT SUCH TIME AS THE SECRETARY
OF THE TREASURY OR HIS DELEGATE SHALL BY REGULATIONS PRESCRIBE) TO HAVE
SUCH PROVISIONS SO APPLY. ANY ELECTION MADE UNDER THIS SUBSECTION, ONCE
MADE, SHALL BE IRREVOCABLE.
(E) CERTAIN DEFINITIONS AND SPECIAL RULES.--SECTION 414 OF THE
INTERNAL REVENUE CODE OF 1954 //ANTE, P. 924.// (OTHER THAN SUBSECTIONS
(B) AND (C) OF SUCH SECTION 414), AS ADDED BY SECTION 1015(A) OF THIS
ACT, SHALL TAKE EFFECT ON THE DATE OF THE ENACTMENT OF THIS ACT.
(F) TRANSITIONAL RULES WITH RESPECT TO BREAKS IN SERVICE.--
(1) PARTICIPATION.--IN THE CASE OF A PLAN TO WHICH SECTION 410
OF THE INTERNAL REVENUE CODE OF 1954 //ANTE. P. 898.// APPLIES, IF
ANY PLAN AMENDMENT WITH RESPECT TO BREAKS IN SERVICE (WHICH
AMENDMENT IS MADE OR BECOMES EFFECTIVE AFTER JANUARY 1, 1974, AND
BEFORE THE DATE ON WHICH SUCH SECTION 410 FIRST BECOMES EFFECTIVE
WITH RESPECT TO SUCH PLAN) PROVIDES THAT ANY EMPLOYEE'S
PARTICIPATION IN THE PLAN WOULD COMMENCE AT ANY DATE LATER THAN
THE LATER OF--,
(A) THE DATE ON WHICH HIS PARTICIPATION WOULD COMMENCE UNDER
THE BREAK IN SERVICE RULES OF SECTION 410(A) (5) OF SUCH CODE OR,
(B) THE DATE ON WHICH HIS PARTICIPATION WOULD COMMENCE UNDER
THE PLAN AS IN EFFECT ON JANUARY 1, 1974, SUCH PLAN SHALL NOT
CONSITIUTE A PLAN DESCRIBED IN SECTION 403(A) //26 USC 403.// OR
402(A) OF SUCH CODE AND A TRUST FORMING A PART OF SUCH PLAN SHALL
NOT CONSTITUTE A QUALIFIED TRUST UNDER SECTION 401(A) OF SUCH
CODE.
(2) VESTING.--IN THE CASE OF A PLAN TO WHICH SECTION 411 OF THE
INTERNAL REVENUE CODE OF 1954 //ANTE, P. 901.// APPLIES, IF ANY
PLAN AMENDMENT WITH RESPECT TO BREAKS IN SERVICE (WHICH AMENDMENT
IS MADE OR BECOMES EFFECTIVE AFTER JANUARY 1, 1974, AND BEFORE THE
DATE ON WHICH SUCH SECTION 411 FIRST BECOMES EFFECTIVE WITH
RESPECT TO SUCH PLAN) PROVIDES THAT THE NONFORFEITABLE BENEFIT
DERIVED FROM IMPLOYER CONTRIBUTIONS TO WHICH ANY EMPLOYEE WOULD BE
ENTITLED IS LESS THAN THAN THE LESSER OF THE NONFORFEITABLE
BENEFIT DERIVED FROM EMPLOYER CONTRIBUTIONS TO WHICH HE WOULD BE
ENTITLED UNDER--,
(A) THE BREAK IN SERVICE RULES OF SECTION 411(A) (6) OF SUCH
CODE, OR
(B) THE PLAN AS IN EFFECT ON JANUARY 1, 1974, SUCH PLAN SHALL
NOT CONSTITUTE A PLAN DESCRIBED IN SECTION 403(A) OR 405(A) OF
SUCH CODE AND A TRUST FORMING A PART OF SUCH PLAN SHALL NOT
CONSTITUTE A QUALIFIED TRUST UNDER SECTION 401(A) OF SUCH CODE.
SUBPARAGRAPH (B) SHALL NOT APPLY IF THE BREAK IN SERVICE RULES
UNDER THE PLAN WOULD HAVE BEEN IN VIOLATION OF ANY LAW OR RULE OF
LAW IN EFFECT ON JANUARY 1, 1974.
(G) 3-YEAR DELAY FOR CERTAIN PROVISIONS.--SUBPARAGRAPHS (B) AND (C)
OF SECTION 404(A) (1) //ANTE, P. 921.// SHALL APPLY ONLY IN THE CASE OF
PLAN YEARS BEGINNING ON OR AFTER 3 YEARS AFTER THE DATE OF THE ENACTMENT
OF THIS ACT.
(H) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2), SECTION 431 //ANTE, P.
924.// OF THE INTERNAL REVENUE CODE OF 1954 SHALL APPLY TO PLAN YEARS
BEGINNING AFTER DECEMBER 31, 1953.
(2) (A) FOR PLAN YEARS BEGINNING BEFORE THE APPLICABLE EFFECTIVE DATE
OF SECTION 410 OF SUCH CODE, //ANTE, P. 898.// THE PROVISIONS PARAGRAPHS
(1) AND (8) OF SUBSECTION (B) OF SUCH SECTION 413 SHALL BE APPLIED BY
SUBSTITUTING "401(A) (3)" FOR "410".
(B) FOR PLAN YEARS BEGINNING BEFORE THE APPLICABLE EFFECTIVE DATE OF
SECTION 411 OF SUCH CODE, //ANTE, P. 901.// THE PROVISIONS OF SUBSECTION
(B) (2) OF SUCH SECTION 413 SHALL BE APPLIED BY SUBSTITUTING "401(A)
(7)" FOR "411(D) (3)".
(C)(1) THE PROVISIONS OF SUBSECTION (B) (4) OF SUCH SECTION 413 SHALL
NOT APPLY TO PLAN YEARS BEGINNING BEFORE THE APPLICABLE EFFECTIVE DATE
OF SECTION 411 OF SUCH CODE.
(II) THE PROVISIONS OF SUBSECTION (B)(5) (OTHER THAN THE SECOND
SENTENCE THEREOF) OF SUCH SECTION 413 SHALL NOT APPLY TO PLAN YEARS
BEGINNING BEFORE THE APPLICABLE EFFECTIVE DATE OF SECTION 412 OF SUCH
CODE.
(A) JOINT AND SURVIVOR ANNUITY REQUIREMENT.--,
(1) IN GENERAL.--//26 USC 401 NOTE.// EFFECTIVE WITH RESPECT TO
PLAN YEARS BEGINNING AFTER DECEMBER 31, 1975, SECTION 401(A) //26
USC 401.// (RELATING TO REQUIREMENTS FOR QUALIFICATION) IS AMENDED
BY INSERTING AFTER PARAGRAPH (10) THE FOLLOWING NEW PARAGRAPH:
"(11) (A) A TRUST SHALL NOT CONSTITUTE A QUALIFIED TRUST UNDER
THIS SECTION IF THE PLAN OF WHICH SUCH TRUST IS A PART PROVIDES
FOR THE PAYMENT OF BENEFITS IN THE FORM OF AN ANNUITY UNLESS SUCH
PLAN PROVIDES FOR THE PAYMENT OF ANNUITY BENEFITS IN A FORM HAVING
THE EFFECT OF A QUALIFIED JOINT AND SURVIVOR ANNUITY.
"(B) NOTWITHSTANDING THE PROVISIONS OF SUBPARAGRAPH (A), IN THE
CASE OF A PLAN WHICH PROVIDES FOR THE PAYMENT OF BENEFITS BEFORE
THE NORMAL RETIREMENT AGE (AS DEFINED IN SECTION 411 (A)( 8)), THE
PLAN IS NOT REQUIRED TO PROVIDE FOR THE PAYMENT OF ANNUITY
BENEFITS IN A FORM HAVING THE EFFECT OF A QUALIFIED JOINT AND
SURVIVOR ANNUITY DURING THE PERIOD BEGINNING ON THE DATE ON WHICH
THE EMPLOYEE ENTERS INTO THE PLAN AS A PARTICIPANT AND ENDING ON
THE LATER OF--,
"(I) THE DATE THE EMPLOYEE REACHES THE EARLIEST RETIREMENT AGE
UNDER THE PLAN, OR
"(II) THE FIRST DAY OF THE 120TH MONTH BEGINNIG BEFORE THE DATE
ON WHICH THE EMPLOYEE REACHES NORMAL RETIREMENT AGE.
"(C) A PLAN DESCRIBED IN SUBPARAGRAPH (B) DOES NOT MEET THE
REQUIREMENTS OF SUBPARAGRAPH (A) UNLESS, UNDER THE PLAN, A
PARTICIPANT HAS A REASONABLE PERIOD DURING WHICH HE MAY ELECT THE
QUALIFIED JOINT AND SURVIVOR ANNUITY FORM WITH RESPECT TO THE
PERIOD BEGINNING ON THE DATE ON WHICH THE PERIOD DESCRIBED IN
SUBPARAGRAPH (B) ENDS AND ENDING ON THE DATE ON WHICH HE REACHES
NORMAL RETIREMENT AGE (AS DEFINED IN SECTION 411(A)(8)) IF HE
CONTINUES HIS EMPLOYMENT DUEING THAT PERIOD. A PLAN DOES NOT MEET
THE REQUIREMENTS OF THIS SUBPARAGRAPH UNLESS, IN THE CASE OF SUCH
AN ELECTION, THE PAYMENTS UNDER THE SURVIVOR ANNUITY ARE NOT LESS
THAN THE PAYMENTS WHICH WOULD HAVE BEEN MADE UNDER THE JOINT
ANNUITY TO WHICH THE PARTICIPANT WOULD HAVE BEEN ENTITLED IF HE
MADE AN ELECTION DESCRIBED IN THIS SUBPARAGRAPH IMMEDIATELY PRIOR
TO HIS RETIREMENT AND IF HIS RETIREMENT AND OCCURRED ON THE DAY
BEFORE HIS DEATH AND WITHIN THE PERIOD WITHIN WHICH AN ELECTION
CAN BE MADE.
"(D) A PLAN SHALL NOT BE TREATED AS NOT SATISFYING THE
REQUIREMENTS OF THIS PARAGRAPH SOLELY BECAUSE THE SPOUSE OF THE
PARTICAPANT IS NOT ENTITLED TO RECEIVE A SURVIVOR ANNUITY (WHETHER
OR NOT AN ELECTION DESCRIBED IN SUBPARAGRAPH (C) HAS BEEN MADE
UNDER SUBPARAGRAPH (C)) UNLESS THE PARTICIPANT AND HIS SPOUSE HAVE
BEEN MARRIED THROUGHOUT THE 1-YEAR PERIOD ENDING ON THE DATE OF
SUCH PARTICIPANT'S DEATH.
"(E) A PLAN SHALL NOT BE TREATED AS SATISFYING THE REQUIREMENTS
OF THIS PARAGRAPH UNLESS, UNDER THE PLAN, EACH PARTICIPANT HAS A
REASONABLE PERIOD (AS DESCRIBED BY THE SECRETARY OR HIS DELEGATE
BY REGULATIONS) BEFORE THE ANNUITYSTARTING DATE DURING WHICH HE
MAY ELECT IN WRITING (AFTER HAVING RECEIVED A WRITTEN EXPLANATION
OF THE TERMS AND CONDITIONS OF THE UOINT AND SURVIVOR ANNUITY AND
THE EFFECT OF AN ELECTION UNDER THIS SUBPARAGRAPH) NOT TO TAKE
SUCH JOINT AND SURVIVOR ANNUITY.
"(F) A PLAN SHALL NOT BE TREATED AS NOT SATISFYING THE
REQUIREMENTS OF THIS PARAGRAPH SOLELY BECAUSE UNDER THE PLAN THERE
IS A PROVISION THAT ANY ELECTION DESCRIBED IN SUBPARAGRAPH (C) OR
(E), AND ANY REVOCATION OF ANY SUCH ELECTION, DOES NOT BECOME
EFFECTIVE (OR CEASES TO BE EFFECTIVE) IF THE PARTICIPANT DIES
WITHIN A PERIOD (NOT IN EXCESS OF 2 YEARS) BEGINNING ON THE DATE
OF SUCH ELECTION OR REVOCATION, AS THE CASE MAY BE. THE PRECEDING
SENTENCE DOES NOT APPLY UNLESS THE PLAN PROVISION DESCRIBED IN THE
PRECEDING SENTENCE ALSO PROVIDES THAT SUCH AN ELECTION OR
REVOCATION WILL BE GIVEN EFFECT IN ANY CASE IN WHICH--,
"(I) THE PARTICIPANT DIES FROM ACCIDENTAL CAUSES,
"(II) A FAILURE TO GIVE EFFECT TO THE ELECTION OR REVOCATION
WOULD DEPRIVE THE PARTICIPANT'S SURVIVOR OF A SURVIVOR ANNUITY,
AND
"(III) SUCH ELECTION OR REVOCATION IS MADE BEFORE SUCH ACCIDENT
OCCURRED.
"(G) FOR PURPOSES OF THIS PARAGRAPH--,
"(I) THE TERM 'ANNUITY STARTING DATE' MEANS THE FIRST DAY OF
THE FIRST PERIOD FOR WHICH AN AMOUNT IS RECEIVED AS AN ANNUITY
(WHETHER BY REASON OF RETIREMENT OR BY REASON OF DISABILITY),
"(II) THE TERM 'EARLIEST RETIREMENT AGE' MEANS THE EARLIEST
DATE ON WHICH, UNDER THE PLAN, THE PARTICIPANT COULD ELECT TO
RECEIVE RETIREMENT BENEFITS, AND
"(III) THE TERM 'QUALIFIED JOINT AND SURVIVOR ANNUITY' MEANS AN
ANNUITY FOR THE LIFE OF THE PARTICIPANT WITH A SURVIVOR ANNUITY
FOR THE LIFE OF HIS SPOUSE WHICH IS NOT LESS THAN ONE-HALF OF, OR
GREATER THAN, THE AMOUNT OF THE ANNUITY PAYABLE DURING THE JOINT
LIVES OF THE PARTICIPANT AND HIS SPOUSE AND WHICH IS THE ACTUARIAL
EQUIVALENT OF A SINGLE LIFE ANNUITY FOR THE LIFE OF THE
PARTICIPANT. FOR PURPOSES OF THIS PARAGRAPH, A PLAN MAY TAKE INTO
ACCOUNT IN ANY EQUITABLE MANNER (AS DETERMINED BY THE SECRETARY OR
HIS DELEGATE) ANY INCREASED COSTS RESULTING FROM PROVIDING JOINT
AND SURVIVOR ANNUITY BENEFITS.
"(H) THIS PARAGRAPH SHALL APPLY ONLY IF--,
"(I) THE ANNUITY STARTING DATE DID NOT OCCUR BEFORE THE
EFFECTIVE DATE OF THIS PARAGRAPH, AND
"(II) THE PARTICIPANT WAS AN ACTIVE PARTICIPANT IN THE PLAN ON
OR AFTER SUCH EFFECTIVE DATE."
(2) CERTAIN ADDITIONAL REQUIREMENTS APPLY ONLY TO PLANS TO
WHICH VESTING REQUIREMENTS APPLY.--SECTION 401(A) //26 USC 401.//
(RELATING TO REQUIREMENTS FOR QUALIFICATION) IS AMENDED BY ADDING
AT THE END THEREOF THE FOLLOWING NEW SENTENCE: "PARAGRAPHS (11),
(12), (13), (14), (15), AND (19) SHALL APPLY ONLY IN THE CASE OF A
PLAN TO WHICH SECTION 411 //ANTE, P. 901.// (RELATING TO MINIMUM
VESTING STANDARDS) APPLIES WITHOUT REGARD TO SUBSECTION (E)(2) OF
SUCH SECTION."
(B) REQUIREMENTS IN CASE OF MERGERS AND CONSOLIDATIONS OF PLANS OR
TRANSFERS OF PLAN ASSETS.-- //26 USC 401 NOTE.// EFFECTIVE WITH RESPECT
TO PLAN YEARS BEGINNING AFTER DECEMBER 31, 1975, SECTION 401(A) //ANTE,
P. 935.// IS AMENDED BY INSERTING AFTER PARAGRAPH (!!) THE FOLLOWING NEW
PARAGRAPH;
"(12) A TRUST SHALL NOT CONSTITUTE A QUALIFIED TRUST UNDER THIS
SECTION UNLESS THE PLAN OF WHICH SUCH TRUST IS A PART PROVIDES
THAT IN THE CASE OF ANY MERGER OR CONSOLIDATION WITH, OR TRANSFER
OF ASSETS OR LIABILITIES TO, ANY OTHER PLAN AFTER THE DATE OF THE
ENACTMENT OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
//ANTE, P. 829.// EACH PARTICIPANT IN THE PLAN WOULD (IF THE PLAN
THEN TERMINATED) RECEIVE A BENEFIT IMMEDIATELY AFTER THE MERGER,
CONSOLIDATION, OR TRANSFER WHICH IS EQUAL TO OR GREATER THAN THE
BENEFIT HE WOULD HAVE BEEN ENTITLED TO RECEIVE IMMEDIATELY BEFORE
THE MERGER, CONSOLIDATION, OR TRANSFER (IF THE PLAN HAD THEN
TERMINATED). THIS PARAGRAPH SHALL APPLY IN THE CASE OF A
MULTIEMPLOYER PLAN ONLY TO THE EXTENT DETERMINED BY THE PENSION
GUARANTY CORPORATION ."
(C) RETIREMENT BENEFITS MAY NOT BE ASSIGNED OR ALIENATED.-- SECTION
401(A) IS AMENDED BY INSERTING AFTER PARAGRAPH (12) THE FOLLOWING NEW
PARAGRAPH:
"(13) A TRUST SHALL NOT CONSTITUTE A QUALIFIED TRUST UNDER THIS
SECTION UNLESS THE PLAN OF WHICH SUCH TRUST IS A PART PROVIDES
THAT BENEFITS PROVIDED UNDER THE PLAN MAY NOT BE ASSIGNED OR
ALIENATED. FOR PURPOSES OF THE PRECEDING SENTENCE, THERE SHALL
NOT BE TAKEN INTO ACCOUNT ANY VOLUNTARY AND REVOCABLE ASSIGNMENT
OF NOT TO EXCEED 10 PERCENT OF ANY BENEFIT PAYMENT MADE BY ANY
PARTICIPANT WHO IS RECEIVING BENEFITS UNDER THE PLAN UNLESS THE
ASSIGNMENT OR ALIENATION IS MADE FOR PURPOSES OF DEFRAYING PLAN
ADMINISTRATION COSTS. FOR PURPOSES OF THIS PARAGRAPH A LOAN MADE
TO A PARTICIPANT OR BENEFICIARY SHALL NOT BE TREATED AS AN
ASSIGNMENT OR ALIENATION IF SUCH LOAN IS SECURED BY THE
PARTICIPANT'S ACCRUED NONFORFEITABLE BENEFIT AND IS EXEMPT FROM
THE TAX IMPOSED BY SECTION 4975 //POST, P. 971.// (RELATING TO TAX
ON PROHIBITED TRANSACTIONS) BY REASON OF SECTION 4975 (D) (1).
THIS PARAGRAPH SHALL TAKE EFFECT ON JANUARY 1, 1976 AND SHALL NOT
APPLY TO ASSIGNMENTS WHICH WERE IRREVOCABLE ON THE DATE OF THE
ENACTMENT OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974."
"(D) REQUIREMENT THAT PAYMENT OF BENEFITS BEGIN NOT LATER THAN WHEN
THE PARTICIPANT ATTAINS AGE 65 OR HAS COMPLETED 10 YEARS OF
PARTICIPATION.--SECTION 401(A) IS AMENDED BY INSERTING AFTER PARAGRAPH
(13) THE FOLLOWING NEW PARAGRAPH:
"(14) A TRUST SHALL NOT CONSTITUTE A QUALIFIED TRUST UNDER THIS
SECTION UNLESS THE PLAN OF WHICH SUCH TRUST IS A PART PROVIDES
THAT, UNLESS THE PARTICIPANT OTHERWISE ELECTS, THE PAYMENT OF
BENEFITS UNDER THE PLAN TO THE PARTICIPANT WILL BEGIN NOT LATER
THAN THE 60TH DAY AFTER THE LATEST OF THE CLOSE OF THE PLAN YEAR
WHICH--,
"(A) THE DATE ON WHICH THE PARTICIPANT ATTAINS THE EARLIER OF
AGE 65 OR THE NORMAL RETIREMENT AGE SPECIFIED UNDER THE PLAN,
"(B) OCCURS THE 10TH ANNIVERSARY OF THE YEAR IN WHICH THE
PARTICIPANT COMMENCED PARTICIPATION IN THE PLAN, OR
"(C) THE PARTICIPANT TERMINATES HIS SERVICE WITH THE EMPLOYER.
IN THE CASE OF A PLAN WHICH PROVIDES FOR THE PAYMENT OF AN EARLY
RETIREMENT BENEFIT, A TRUST FORMING A PART OF SUCH PLAN SHALL NOT
CONSITIUTE A QUALIFIED TRUST UNDER THIS SECTION UNLESS A
PARTICIPANT WHO SATISFIED THE SERVICE REQUIREMENTS FOR SUCH EARLY
RETIREMENT BENEFIT, BUT SEPARATED FROM THE SERVICE (WITH ANY
NONFORFEITABLE RIGHT TO AN ACCRUED BENEFIT) BEFORE SATISFYING THE
AGE REQUIREMENT FOR SUCH EARLY RETIREMENT BENEFIT, IS ENTITLED
UPON SATISFACTION OF SUCH AGE REQUIREMENT TO RECEIVE A BENEFIT NOT
LESS THAN THE BENEFIT TO WHICH HE WOULD BE ENTITLED AT THE NORMAL
RETIREMENT AGE, ACTUARIALLY, REDUCED UNDER REGULATIONS PRESCRIBED
BY THE SECRETARY OR HIS DELEGATE."
(E) REQUIREMENT THAT PLAN BENEFITS ARE NOT DECREASED BY CERTAIN
SOCIAL SECURITY INCREASES.--SECTION 401(A) IS AMENDED BY INSERTING AFTER
PARAGRAPH (14) THE FOLLOWING NEW PARAGRAPH: //ANTE, P. 937.//
"(15) A TRUST SHALL NOT CONSTITUTE A QUALIFIED TRUST UNDER THIS
SECTION UNLESS UNDER THE PLAN OF WHICH SUCH TRUSE IS PART--,
"(A) IN THE CASE OF A PARTICIPANT OR BENEFICIARY WHO IS
RECEIVING BENEFITS UNDER SUCH PLAN, OR
"(B) IN THE CASE OF A PARTICIPANT WHO IS SEPARATED FROM THE
SERVICE AND WHO HAS NONFORFEITABLE RIGHTS TO BENEFITS, SUCH
BENEFITS ARE NOT DECREASED BY REASON OF ANY INCREASE IN THE
BENEFIT LEVELS PAYABLE UNDER TITLEII OF THE SOCIAL SECURITY ACT
//42 USC 401.// OR ANY INCREASE IN THE WAGE BASE UNDER SUCH TITLE
II, IF SUCH INCREASE TAKES PLACE AFTER THE DATE OF THE ENACTMENT
OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974 OR (IF
LATER) THE EARLIER OF THE DATE OF FIRST RECRIPT OF SUCH BENEFITS
OR THE DATE SO SUCH SEPARATION, AS THE CASE MAY BE."
(F) REQUIREMENT OF NONFORFEITABILITYIN CASE OF CERTAIN
WITHDRAWALS.--SECTION 401(A) IS AMENDED BY INSERTING AFTER PARAGRAPH
(18) THE FOLLOWING NEW PARAGRAPH:
"(19) A TRUST SHALL NOT CONSTITUTE A QUALIFIED TRUST UNDER THIS
SECTION IF UNDER THE PLAN OF WHICH SUCH TRUST IS A PART ANY PART
OF A PARTICIPANT'S ACCRUED BENEFIT DERIVED FROM EMPLOYER
CONTRIBUTIONS (WHETHER OR NOT OTHERWISE NONFORFEITABLE), IS
FORFREITABLE SOLELY BECAUSE OF WITHDRAWAL BY SUCH PARTICIPANT OF
ANY AMOUNT ATTRIBUTABLE TO THE BENEFIT DERIVED FROM CONTRIBUTIONS
MADE BY SUCH PARTICIPANT. THE PRECEDING SENTENCE SHALL NOT APPLY
TO THE ACCRUED BENEFIT OF ANY PARTICIPANT UNLESS, AT THE TIME OF
SUCH WITHDRAWAL, SUCH PARTICIPANT HAS A NONFORFEITABLE RIGHT TO AT
LEAST 50 PERCENT OF SUCH ACCRUED BENEFIT (AS DETERMINED UNDER
SECTION 411). THE FIRST SENTENCE OF THIS PARAGRAPH SHALL NOT
APPLY TO THE EXTENT THAT AN ACCRUED BENEFIT IS PERMITTED TO BE
FORFEITED IN ACCORDANCE WITH SECTION 411(A) (3) (D) (III) //ANTE,
P. 90!.// (RELATING TO PROPORTIONAL FORFEITURES OF BENEFITS
ACCRUED BEFORE ENACTMENT OF THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, IN THE EVENT OF WITHDRAWAL OF CERTAIN
MANDATORY CONTRIBUTIONS)."
(A) REQUIREMENT THAT PLAN NOT BE DISCRIMINATORY.--SECTION 401(A) (4)
//26 USC 401.// (DISQUALIFYING DISCRIMINATORY PLANS) IS AMENDED TO READ
AS FOLLOWS:
"(4) IF THE CONTRIBUTIONS OR THE BENEFITS PROVIDED UNDER THE
PLAN DO NOT DISCRIMINATE IN FAVOR OF EMPLOYEES WHO ARE--,
"(A) OFFICERS,
"(B) SHAREHOLDERS, OR
"(C) HIGHLY COMPENSATED. FOR PURPOSES OF THIS PARAGRAPH, THERE
SHALL BE EXCLUDED FROM CONSIDERATION EMPLOYEES DESCRIBED IN
SECTION 410(B) (2) (A) AND (C)." //ANTE, P. 898,//
(B) AMENDMENTS RELATING TO SELF-EMPLOYED INDIVIDUALS AND
OWNER-EMPLOYEES.--,
(1) AMENDMENTS OF SECTION (401) (A) (10).--SO MUCH OF
SUBPARAGRAPH (A) OF SECTION 401(A) (10) //26 USC 401.// AS
PRECEDES CLAUSE (I) THEREOF IS AMENDED TO READ AS FOLLOWS:
"(A) PARAGRAPH (3), THE FIRST AND SECOND SENTENCES OF PARAGRAPH
(5), AND SECTION 410 SHALL NOT APPLY, BUT--".
(2) AMENDMENT OF SECTION (401) (D) (3).--SECTION 401(D)(3)
(RELATING TO ADDITIONAL REQUIREMENTS FOR QUALIFICATION OF TRUSTS
AND PLANS BENEFITING OWNER-EMPLOYEES) IS AMENDED TO READ AS
FOLLOWS:
"(3) (A) THE PLAN BENEFITS EACH EMPLOYEE HAVING 3 OR MORE YEARS
OF SERVICE (WITHIN THE MEANING OF SECTION 101(A)(3)).
"(B) FOR PURPOSES OF SUBPARAGRAPH (A), THE TERM 'EMPLOYEE' DOES
NOT INCLUDE--,
"(I) ANY EMPLOYEE INCLUDED IN A UNIT OF EMPLOYEES COVERED BY A
COLLECTIVE-BARGAINING AGREEMENT DESCRIBED IN SECTION 401(B) (2)
(A), AND
"(II) ANY EMPLOYEE WHO IS A NONRESISTANT ALIEN INDIVIDUAL
DESCRIBED IN SECTION 410(B) (2) (C)."
(C) PERSONS OTHER THAN BANKS MAY BE TRUSTEES OF TRUSTS BENEFITING
OWNER-EMPLOYEES.--,
(1) THE FIRST SENTENCE OF SECTION 401(D) (1) IS AMENDED TO READ
AS FOLLOWS: "IN THE CASE OF A TRUST WHICH IS CREATED ON OR AFTER
OCTOBER 10, 1962, OR WHICH WAS CREATED BEFORE SUCH DATE BUT IS NOT
EXEMPT FROM TAX UNDER SECTION 501(A) //26 USC 501.// AS AN
ORGANIZATION DESCRIBED IN SUBSECTION (A) ON THE DAY BEFORE SUCH
DATE, THE ASSETS THEREOF ARE HELD BY A BANK OR OTHER PERSON WHO
DEMONSTRATES TO THE SATISFACTION OF THE SECRETARY OR HIS DELEGATE
THAT THE MANNER IN WHICH HE WILL ADMINISTER THE TRUST WILL BE
CONSISTENT WITH THE REQUIREMENTS OF THIS SECTION. A TRUST SHALL
BE CONSISTENT WITH THE REQUIREMENTS OF THIS SECTION. A TRUST
SHALL NOT BE DISQUALIFIED UNDER THIS PARAGRAPH MERELY BECAUSE A
PERSON (INCLUDING THE EMPLOYER) OTHER THAN THE TRUSTEE OR
CUSTODIAN SO ADMINISTERING THE TRUST MAY BE GRANTED, UNDER THE
TRUST INSTRUMENT, THE POWER TO CONTROL THE INVESTMENT OF THE TRUST
FUNDS EITHER BY DIRECTING INVESTMENTS (INCLUDING REINVESTMENTS,
DISPOSALS, AND EXCHANGES) OR BY DISAPROVING PROPOSED INVESTMENTS
(INCLUDING REINVESTMENTS, DISPOSALS, OR EXCHANGES)."
(2) THE SECOND SENTENCE OF SECTION 401(D) (1) IS AMENDED BY
STRIKING OUT "THE DATE OF THE ENACTMENT OF THIS SUBSECTION" AND
INSERTING IN LIEU THEREOF "OCTOBER 10, 1962,".
(D) CERTAIN CUSTODIAL ACCOUNTS.-- //26 USC 401 NOTE.// EFFECTIVE AS
OF JANUARY 1, 1974, SUBSECTION (F) OF SECTION 401 (RELATING TO CERTAIN
CUSTODIAL ACCOUNTS) IS AMENDED TO READ AS FOLLOWS:
"(F) CERTAIN CUSTODIAL ACCOUNTS AND ANNUITY CONTRACTS.--FOR PURPOSES
OF THIS TITLE, A CUSTODIAL ACCOUNT OR AN ANNUITY CONTRACT SHALL BE
TREATED AS A QUALIFIED TRUST UNDER THIS SECTION IF--,
"(1) THE CUSTODIAL ACCOUNT OR ANNUITY CONTRACT WOULD, EXCEPT
FOR THE FACT THAT IT IS NOT A TRUST, CONSTITUTE A QUALIFIED TRUST
UNDER THIS SECTION, AND
"(2) IN THE CASE OF A CUSTODIAL ACCOUNT THE ASSETS THEREOF ARE
HELD BY A BANK (AS DEFINED IN SUBSECTION (D)(1)) OR ANOTHER PERSON
WHO DEMONSTRATES, TO THE SATISFACTION OF THE SECRETARY OR HIS
DELEGATE, THAT THE MANNER IN WHICH HE WILL HOLD THE ASSETS WILL BE
CONSISTENT WITH THE REQUIREMENTS OF THIS SECTION.
FOR PURPOSES OF THIS TITLE, IN THE CASE OF A CUSTODIAL ACCOUNT OR
ANNUITY CONTRACT TREATED AS QUALIFIED TRUST UNDER THIS SECTION BY REASON
OF THIS SUBSECTION, THE PERSON HOLDING THE ASSETS OF SUCH ACCOUNT OR
HOLDING SUCH CONTRACT SHALL BE TREATED AS THE TRUSTEE THEREOF."
(E) CUSTODIAL ACCOUNTS FOR REGULATED INVESTMENT COMPANY STOCK.--
EFFECTIVE AS OF JANUARY 1, 1974, SECTION 403(B) //26 USC 403 AND NOTE.//
(RELATING TO TAXABILITY OF BENEFICIARY UNDER ANNUITY PURCHASED BY
SECTION 501(C) //26 USC 501.// (3) ORGANIZATION OR PUBLIC SCHOOL) IS
AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING NEW PARAGRAPH:
"(7) CUSTODIAL ACCOUNTS FOR REGULATED INVESTMENT COMPANY
STOCK.--,
"(A) AMOUNTS PAID TREATED AS CONTRIBUTIONS.--FOR PURPOSES OF
THIS TITLE, AMOUNTS PAID BY AN EMPLOYER DESCRIBED IN PARAGRAPH
(1)(A) TO A CUSTODIAL ACCOUNT WHICH SATISFIES THE REQUIREMENTS OF
SECTION 401(F) (2) //ANTE, P. 939.// SHALL BE TREATED AS AMOUNTS
CONTRIBUTED BY HIM FOR AN ANNUITY CONTRACT FOR HIS EMPLOYEE IF THE
AMOUNTS ARE PAID TO PROVIDE A RETIREMENT BENEFIT FOR THAT EMPLOYEE
AND ARE TO BE INVESTED IN REGULATED INVESTMENT COMPANY STOCK TO BE
HELD IN THAT CUSTODIAL ACCOUNT.
"(B) ACCOUNT TREATED AS PLAN.--FOR PURPOSES OF THIS TITLE, A
CUSTODIAL ACCOUNT WHICH SATISFIES THE REQUIREMENTS OF SECTION 401
(F) (2) SHALL BE TREATED AS AN ORGANIZATION DESCRIBED IN SECTION
401(A) SOLELY FOR PURPOSES OF SUBCHAPTER F AND SUBTITLE F WITH
RESPECT TO AMOUNT RECEIVED BY IT (AND INCOME FROM INVESTMENT
THEREOF).
"(C) REGULATED INVESTMENT COMPANY.--FOR PURPOSES OF THIS
PARAGRAPH, THE TERM 'REGULATED INVESTMENT COMPANY' MEANS A
DOMESTIC CORPORATION WHICH IS A REGULATED INVESTMENT COMPANY
WITHIN THE MEANING OF SECTION 851(A), //26 USC 851.// AND WHICH
ISSUES REDEEMABLE STOCK."
(F) INSURED CREDIT UNIONS.-- //26 USC 401 AND NOTE.// EFFECTIVE AS OF
JANUARY 1, 1974, THE LAST SENTENCE OF SECTION 401(D) (1) IS AMENDED BY
STRIKING OUT "SECTION 581," AND INSERTING IN LIEU THEREOF "SECTION 851,
AN INSURED CREDIT UNION ACT).". //12 USC 1752.//
(G) PUBLIC INSPECTION OF CERTAIN INFORMATION WITH RESPECT TO PENSION,
PROFIT-SHARING, AND STOCK BONUS PLAN.--,
(1) AMENDMENT OF SECTION 6104(A).--PARAGRAPH (1) OF SECTION
6104(A) //26 USC 6104.// (RELATING TO PUBLIC INSPECTION OF
APPLICATIONS FOR TAX EXEMPTION) IS AMENDED--,
(A) BY REDESIGNATING SUBPARAGRAPH (B) AS SUBPARAGRAPH (D) AND
BY INSERTING AFTER SUBPARAGRAPH (A) THE FOLLOWING NEW
SUBPARAGRAPHS:
(B) PENSION, ETC., PLANS.--THE FOLLOWING SHALL BE OPEN TO
PUBLIC INSPECTION AT SUCH TIMES AND IN SUCH PLACES AS THE
SECRETARY OR HIS DELEGATE MAY PRESCRIBE:
"(I) ANY APPLICATION FILED WITH RESPECT TO THE QUALIFICATION OF
A PENSION. PROFIT-SHARING, OR STOCK BONUS PLAN UNDER SECTION
401(A), 403(A), OR 405(A), //26 USC 401, 403, 405.// AN INDIVIDUAL
RETIREMENT ACCOUNT DESCRIBED IN SECTION 408(A), OR AN INDIVIDUAL
RETIREMENT ANNUITY DESCRIBED IN SECTION 408 (B),
"(II) ANY APPLICATION FILED WITH RESPECT TO THE EXEMPTION FROM
TAX UNDER SECTION 501(A) OF AN ORGANIZATION FORMNG PART OF A PLAN
OR ACCOUNT REFERRED TO IN CLAUSE (I),
"(III) ANY PAPERS SUBMITTED IN SUBMITTED IN SUPPORT OF AN
APPLICATION REFERRED TO IN CLAUSE (I) OR (II), AND
"(IV) ANY LETTER OR OTHER DOCUMENT ISSUED BY THE INTERNAL
REVENUE SERVICE AND DEALING WITH THE QUALIFICATIONS REFERRED TO IN
CLAUSE (II). EXCEPT IN THE CASE OF A PLAN PARTICIPANT, THIS
SUBPARAGRAPH SHALL NOT APPLY TO ANY PLAN REFERRED TO IN CLAUSE (I)
HAVING NOT MORE THAN 25 PARTICIPANTS.
"(C) CERTAIN NAMES AND COMPENSATION NOT TO BE OPENED TO PUBLIC
INSPECTION.--IN THE CASE OF ANY APPLICATION, DOCUMENT, OR OTHER
PAPERS, REFERRED TO IN SUBPARAGRAPH (B), INFORMATION FROM WHICH
THE COMPENSATION (INCLUDING DEFERRED COMPENSATION) OF ANY
INDIVIDUAL MAY BE ASCERTAINED SHALL NOT BE OPENED TO PUBLIC
INSPECTION UNDER SUBPARAGRAPH (B)."
(B) THE HEADING OF SUBPARAGRAPH (A) OF SECTION 6104(A) //26 USC
6104.// (1) IS AMENDED TO READ AS FOLLOWS:
"(A) ORGANIZATIONS DESCRIBED IN SECTION 501.--"
(C) THE HEADING OF SUBPARAGRAPH (D) OF SECTION 6104(A) (1) AS
REDESIGNATED BY SUBPARAGRAPH (A) OF THIS PARAGRAPH IS AMENDED TO
READ AS FOLLOWS:
"(D) WITHHOLDING OF CERTAIN OTHER INFORMATION.--"
(D) SUBPARAGRAPH (D) OF SECTION 6104(A) (1) (AS SO
REDESIGNATED) IS AMENDED BY STRIKING OUT "SUBPARAGRAPH (A)" EACH
PLACE IT APPEARS AND INSERTING IN LIEU THEREOF "SUBPARAGRAPH (A)
OR (B)".
(2) AMENDMENT OF SECTION 6104(A)(2).--SUBPARAGRAPH (A) OF
SECTION 6104(A)(2) IS AMENDED BY ADDING AT THE END THEREOF "ANY
APPLICATION REFERRED TO IN SUBPARAGRAPH (B) OF SUBSECTION (A) (1)
OF THIS SECTION, AND".
(3) AMENDMENT OF SECTION 6104(B).--SECTION 6104(B) (RELATING TO
INSPECTION OF ANNUAL INFORMATION RETURNS) IS AMENDED BY STRIKING
OUT "AND 6056" AND INSERTING IN LIEU THEREOF "6956, AND 6058".
(4) EFFECTIVE DATE.--//26 USC 6104 NOTE.// THE AMENDMENTS MADE
BY THIS SUBSECTION SHALL APPLY TO APPLICATIONS FILED (OR DOCUMENTS
ISSUED) AFTER THE DATE OF ENACTMENT OF THIS ACT.
(H) PUBLICITY OF RETURNS.--//26 USC 6103 AND NOTE.// EFFECTIVE ON THE
DATE OF THE ENACTMENT OF THIS ACT, SECTION 6103 (RELATING TO PUBLICITY
OF RETURNS AND DISCLOSURE OF INFORMATION AS TO PERSONS FILING INCOME TAX
RETURNS) IS AMENDED BY ADDING AT THE END THEREOF A NEW SUBSECTION (G) TO
READ AS FOLLOWS:
"(G) DISCLOSURE OF INFORMATION WITH RESPECT TO DEFERRED COMPENSATION
PLAN.--THE SECRETARY OR HIS DELEGATE IS AUTHORIZED TO FURNISH--,
"(1) RETURNS WITH RESPECT TO ANY TAX IMPOSED BY THIS TITLE OR
INFORMATION WITH RESPECT TO SUCH RETURNS TO THE PROPER OFFICERS
AND EMPLOYEES OF THE DEPARTMENT OF LABOR AND THE PENSION BENEFIT
GUARANTY CORPORATION FOR PURPOSES OF ADMINISTRATION OF TITLES I
AND IV OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974,
//ANTE, P. 832, POST, P. 1003.// AND
"(2) REGISTRATION STATEMENTS (AS DESCRIBED IN SECTION 6057)
//26 USC 6057.// AND INFORMATION WITH RESPECT TO SUCH STATEMENTS
TO THE PROPER OFFICERS AND EMPLOYEES OF THE DEPARTMENT OF HEALTH,
EDUCATION, AND WELFARE FOR PURPOSES OF ADMINISTRATION OF SECTION
1131 OF THE SOCIAL SECURITY ACT." //POST, P. 947.//
(I) CERTAIN PUERTO RICAN PENSION, ETC., PLANS TO BE EXEMPT FROM TAX
UNDER SECTION 501(A).--,
(1) GENERAL RULE.--//26 USC 501 AND NOTE.// EFFECTIVE FOR
TAXABLE YEARS BEGINNING AFTER DECEMBER 31, 1973, FOR PURPOSES OF
SECTION 501(A) OF THE INTERNAL REVENUE CODE OF 1954 //26 USC
501.// (RELATING TO EXEMPTION FROM TAX), ANY TRUST FORMING PART OF
A PENSION, PROFIT-SHARING, OR STOCK BONUS PLAN ALL OF THE
PARTICIPANTS OF WHICH ARE RESIDENTS OF THE COMMONWEALTH OF PUERTO
RICO SHALL BE TREATED AS AN ORGANIZATION DESCRIBED IN SECTION
401(A) OF SUCH CODE IF SUCH TRUST--,
(A) FORMS PART OF A PENSION, PROFIT-SHARING, OR STOCK BONUS
PLAN, AND
(B) IS EXEMPT FROM INCOME TAX UNDER THE LAWS OF THE
COMMONWEALTH OF PUERTO RICO.
(2) ELECTION TO HAVE PROVISIONS OF, AND AMENDMENTS MADE BY,
TITLE II OF THIS ACT APPLY.--,
(A) IF THE ADMINISTRATOR OF A PENSION, PROFIT-SHARING, OR STOCK
BONUS PLAN WHICH IS CREATED OR ORGANIZED IN PUERTO RICO ELECTS, AT
SUCH TIME AND IN SUCH MANNER AS THE SECRETARY OF THE TREASURY MAY
REQUIRE, TO HAVE THE PROVISIONS OF THIS PARAGRAPH APPLY, FOR PLAN
YEARS BEGINNING AFTER THE DATE OF ELECTION ANY TRUST FORMING A
PART OF SUCH PLAN SHALL BE TREATED AS A TRUST CREATED OR ORGANIZED
IN THE UNITED STATES FOR PURPOSES OF SECTION 401(A) OF THE
INTERNAL REVENUE CODE OF 1954.
(B) AN ELECTION UNDER SUBPARAGRAPH (A), ONCE MADE, IS
IRREVOCABLE.
(C) THIS PARAGRAPH APPLIES TO PLAN YEARS BEGINNING AFTER THE
DATE OF ENACTMENT OF THIS ACT.
(D) THE SOURCE OF ANY DISTRIBUTIONS MADE UNDER A PLAN WHICH
MAKES AN ELECTION UNDER THIS PARAGRAPH TO PARTICIPANTS AND
BENEFICIARIES RESIDING OUTSIDE OF THE UNITED STATES SHALL BE
DETERMINED, FOR PURPOSES OF SUBCHAPTER N OF CHAPTER 1 OF THE
INTERNAL REVENUE CODE OF 1954, BY THE SECRETARY OF THE TREASURY IN
ACCORDANCE WITH REGULATIONS PRESCRIBED BY HIM. FOR PURPOSES OF
THIS SUBPARAGRAPH THE UNITED STATES MEANS THE UNITED STATES AS
DEFINED IN SECTION 7701(A) (9) OF THE INTERNAL REVENUE CODE OF
1954.
(J) YEAR OF DEDUCTION FOR CERTAIN EMPLOYER CONTRIBUTIONS FOR SERVICE
PAYMENTS REQUIRED BY FOREIGN LAW.-- //26 USC 401 NOTE.// EFFECTIVE FOR
TAXABLE YEARS BEGINNING AFTER DECEMBER 31, 1973, IF--,
(1) AN EMPLOYER IS ENGAGED IN A TRADE OR BUSINESS IN A FOREIGN
COUNTRY,
(2) SUCH EMPLOYER IS REQUIRED BY THE LAWS OF THAT COUNTRY TO
MAKE PAYMENTS, BASED ON PERIODS OF SERVICE, TO ITS EMPLOYEES OR
THEIR BENEFICIARIES AFTER THE EMPLOYEES' RETIREMENT, DEATH, OR
OTHER SEPARATION FROM THE SERVICE, AND
(3) SUCH EMPLOYER ESTABLISHES A TRUST (WHETHER ORGANIZED WITHIN
OR OUTSIDE THE UNITED STATES) FOR THE PURPOSE OF FUNDING THE
PAYMENTS REQUIRED BY SUCH LAW,
THEN, IN DETERMINING FOR PURPOSES OF PARAGRAPH (5) OF SECTION 404(A) OF
THE INTERNAL REVENUE CODE OF 1954 //26 USC 404.// THE TAXABLE YEAR IN
WHICH ANY CONTRIBUTION TO OR UNDER THE PLAN IS INCLUDIBLE IN THE GROSS
INCOME OF THE NONRESIDENT ALIEN EMPLOYEES.
(K) RECEIPTS FOR EMPLOYEES.--SECTION 6051 //26 USC 6051.// (RELATING
TO RECEIPTS FOR EMPLOYEES) IS AMENDED BY INSERTING AFTER "EXEMPTION," IN
SUBSECTION (A) THE FOLLOWING: "OR EVERY EMPLOYER ENGAGED IN A TRADE OR
BUSINESS WHO PAYS REMUNERATION FOR SERVICES PERFORMED BY AN EMPLOYEE,
INCLUDING THE CASH VALUE OF SUCH REMUNERATION PAID IN ANY MEDIUM OTHER
THAN CASH,".
SECTION 401(B) //26 USC 401.// (RELATING TO CERTAIN RETROACTIVE
CHANGES IN PLAN) IS AMENDED TO READ AS FOLLOWS:
"(B) CERTAIN RETROACTIVE CHANGES IN PLAN.--A STOCK BONUS, PENSION,
PROFIT-SHARING, OR ANNUITY PLAN SHALL BE CONSIDERED AS SATISFYING THE
REQUIREMENTS OF SUBSECTION (A) FOR THE PERIOD BEGINNING THE DATE ON
WHICH IT WAS PUT INTO EFFECT, OR FOR THE PERIOD BEGINNING WITH THE
EARLIER OF THE DATE ON WHICH THERE WAS ADOPTED OR PUT INTO EFFECT ANY
AMENDMENT WHICH CAUSED THE PLAN TO FAIL TO SATISFY SUCH REQUIREMENTS,
AND ENDING WITH THE TIME PRESCRIBED BY LAW FOR FILING THE RETURN OF THE
EMPLOYER FOR HIS TAXABLE YEAR IN WHICH SUCH PLAN OR AMENDMENT WAS
ADOPTED (INCLUDING EXTENSIONS THEREOF) OR SUCH LATER TIME AS THE
SECRETARY OR HIS DELEGATE MAY DESIGNATE, IF ALL PROVISIONS OF THE PLAN
WHICH ARE NECESSARY TO SATISFY SUCH REQUIREMENTS ARE IN EFFECT BY THE
END OF SUCH PERIOD AND HAVE BEEN MADE EFFECTIVE FOR ALL PURPOSES FOR THE
WHOLE OF SUCH PERIOD."
EXCEPT AS OTHERWISE PROVIDED IN SECTION 1021, THE AMENDMENTS MADE BY
SECTION 1021 SHALL APPLY TO PLAN YEARS TO WHICH PART I APPLIES. EXCEPT
AS OTHERWISE PROVIDED IN SECTION 1022, THE AMENDMENTS MADE BY SECTION
1022 SHALL APPLY TO PLAN YEARS TO WHICH PART I APPLIES. SECTION 1023
SHALL TAKE EFFECT ON THE DATE OF THE ENACTMENT OF THIS ACT.
(A) ANNUAL REGISTRATION AND INFORMATION RETURNS.--PART III OF
SUBCHAPTER A OF CHAPTER 61 //26 USC 6031.// (RELATING TO INFORMATION
RETURNS) IS AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING NEW
SUBPART:
"SEC. 6057. ANNUAL REGISTRATION, ETC.
"SEC. 6058. INFORMATION REQUIRED IN CONNECTION WITH CERTAIN PLANS OF
DEFERRED COMPENSATION.
"SEC. 6059. PERIODIC REPORT BY ACTUARY.
"(A) ANNUAL REGISTRATION.--,
"(1) GENERAL RULE.--WITHIN SUCH PERIOD AFTER THE END OF A PLAY
UEAR AS THE SECRETARY OR HIS DELEGATE MAY BY REGULATIONS
PRESCRIBE, THE PLAN ADMINISTRATOR (WITHIN THE MEANING OF SECTION
414(G)) //ANTE, P. 925.// OF EACH PLAN TO WHICH THE VESTING
STANDARDS OF SECTION 203 OF PART 2 OF SUBTITLE B OF TITLE I OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974 //ANTE, P. 854.//
APPLIES FOR SUCH PLAN YEAR SHALL FILE A REGISTRATION STATEMENT
WITH THE SECRETARY OR HIS DELEGATE.
"(2) CONTENTS.--THE REGISTRATION STATEMENT REQUIRED BY
PARAGRAPH (1) SHALL SET FORTH--,
"(A) THE NAME OF THE PLAN,
"(B) THE NAME AND ADDRESS OF THE PLAN ADMINISTRATOR,
"(C) THE NAME AND TAXPAYER IDENTIFYING NUMBER OF EACH
PARTICIPANT IN THE PLAN--,
"(I) WHO, DURING SUCH PLAN YEAR, SEPARATED FROM THE SERVICE
COVERED BY THE PLAN,
"(II) WHO IS ENTITLED TO A DEFERRED VESTED BENEFIT UNDER THE
PLAN AS OF THE END OF SUCH PLAN YEAR, AND
"(III) WITH RESPECT TO WHOM RETIREMENT BENEFITS WERE NOT PAID
UNDER THE PLAN DURING SUCH PLAN YEAR,
"(D) THE NATURE, AMOUNT, AND FORM OF THE DEFERRED VESTED
BENEFIT TO WHICH SUCH PARTICIPANT IS ENTITLED, AND
"(E) SUCH OTHER INFORMATION AS THE SECRETARY OR HIS DELEGATE
MAY REQUIRE. AT THE TIME HE FILES THE REGISTRATION STATEMENT
UNDER THIS SUBSECTION, THE PLAN ADMINISTRATOR SHALL FURNISH
EVIDENCE SATISFACTORY TO THE SECRETARY OR HIS DELEGATE THAT HE HAS
COMPILED WITH THE REQUIREMENT CONTAINED IN SUBSECTION (E).
"(B) NOTIFICATION OF CHANGE IN STATUS.--ANY PLAN ADMINISTRATOR
REQUIRED TO REGISTER UNDER SUBSECTION (A) SHALL ALSO NOTIFY THE
SECRETARY OR HIS DELEGATE, AT SUCH TIME AS MAY BE PRESCRIBED BY
REGULATIONS, OF--,
"(1) ANY CHANGE IN THE NAME OF THE PLAN,
"(2) ANY CHANGE IN THE NAME OR ADDRESS OF THE PLAN
ADMINISTRATOR,
"(3) THE TERMINATION OF THE PLAN, OR
"(4) THE MERGER OR CONSOLIDATION OF THE PLAN WITH ANY OTHER
PLAN OR ITS DIVISION INTO TWO OR MORE PLANS.
"(C) VOLUNTARY REPORTS.--TO THE EXTENT PROVIDED IN REGULATIONS
PRESCRIBED BY THE SECRETARY OR HIS DELEGATE, THE SECRETARY OR HIS
DELEGATE MAY RECEIVE FROM--,
"(1) ANY PLAN TO WHICH SUBSECTION (A) APPLIES, AND
"(2) ANY OTHER PLAN (INCLUDING ANY GOVERNMENTAL PLAN OR CHURCH
PLAN (WITHIN THE MEANING OF SECTION 414)), ANTE, P. 925.//
SUCH INFORMATION (INCLUDING INFORMATION RELATING TO PLAN YEARS BEGINNING
BEFORE JANUARY 1, 1974) AS THE PLAN ADMINISTRATOR MAY WISH TO FILE WITH
RESPECT TO THE DEFERRED VESTED BENEFIT RIGHTS OF ANY PARTICIPANT
SEPARATED FROM THE SERVICE COVERED BY THE PLAN DURING ANY PLAN YEAR.
"(D) TRANSMISSION OF INFORMATION SECRETARY OF HEALTH, EDUCATION, AND
WELFARE.--THE SECRETARY OR HIS DELEGATE SHALL TRANSMIT COPIES OF ANY
STATEMENTS, NOTIFICATIONS, REPORTS, OR OTHER INFORMATION OBTAINED BY HIM
UNDER THIS SECTION TO THE SECRETARY OF HEALTH, EDUCATION, AND WELFARE.
"(E) INDIVIDUAL STATEMENT TO PARTICIPANT.--EACH PLAN ADMINISTRATOR
REQUIRED TO FILE A REGISTRATION STATEMENT UNDER SUBSECTION (A) SHALL,
BEFORE THE EXPIRATION OF THE TIME PRESCRIBED FOR THE FILING OF SUCH
REGISTRATION STATEMENT, ALSO FURNISH TO EACH PARTICIPANT DESCRIBED IN
SUBSECTION (A) (2) (C) AN INDIVIDUAL STATEMENT SETTING FORTH THE
INFORMATION WITH RESPECT TO SUCH PARTICIPANT REQUIRED TO BE CONTAINED IN
SUCH REGISTRATION STATEMENT.
"(F) REGULATIONS.--,
"(1) IN GENERAL.--THE SECRETARY, AFTER CONSULTATION WITH THE
SECRETARY OF HEALTH, EDUCATION, AND WELFARE, MAY PRESCRIBE SUCH
REGULATIONS AS MAY BE NECESSARY TOCARRY OUT THE PROVISIONS OF THIS
SECTION.
"(2) PLANS TO WHICH MORE THAN ONE EMPLOYER CONTRIBUTES.-- THIS
SECTION SHALL APPLY TO ANY PLAN TO WHICH MORE THAN ONE EMPLOYER IS
REQUIRED TO CONTRIBUTEONLY TO THE EXTENT PROVIDED IN REGULATIONS
PRESCRIBED UNDER THIS SUBSECTION.
"(G) CROSS REFERENCES.--,
"FOR PROVISIONS RELATING TO PENALTIES FOR FAILURE TO REGISTER OR
FURNISH STATEMENTS REQUIRED BY THIS SECTION, SEE SECTION 6652(E) AND
SECTION 6690.
"FOR COORDINATION BETWEEN DEPARTMENT OF THE TREASURY AND THE
DEPARTMENT OF LABOR WITH REGARD TO ADMINISTRATION OF THIS SECTION, SEE
SECTION 3004 OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974.
CERTAIN PLANS OF DEFERRED COMPENSATION.
"(A) IN GENERAL.--EVERY EMPLOYER WHO MAINTAINS A PENSION, ANNUITY,
STOCK BONUS, PROFIT-SHARING, OR OTHER FUNDED PLAN OF DEFERRED
COMPENSATION DESCRIBED IN PART I OF SUBCHAPTER D OF CHAPTER 1, //26 USC
401.// OR THE PLAN ADMINISTRATOR (WITHIN THE MEANING OF SECTION 414(G))
//ANTE, P. 925.// OF THE PLAN, SHALL FILE AN ANNUAL RETURN STATING SUCH
INFORMATION AS THE SECRETARY OR HIS DELEGATE MAY BY REGULATIONS
PRESCRIBE WITH RESPECT TO THE QUALIFICATION, FINANCIAL CONDITION, AND
OPERATIONS OF THE PLAN; EXCEPT THAT, IN THE DISCRETION OF THE SECRETARY
OR HIS DELEGATE, THE EMPLOYER MAY BE RELIEVED FROM STATING IN ITS RETURN
ANY INFORMATION WHICH IS REPORTED IN OTHER RETURNS.
"(B) ACTUARIAL STATEMENT IN CASE OF MERGERS, ETC.--NOT LESS THAN 30
DAYS BEFORE A MERGER, CONSOLIDATION, OR TRANSFER OR ASSETS OR
LIABILITIES OF A PLAN DESCRIBED IN SUBSECTION (A) TO ANOTHER PLAN, THE
PLAN ADMINISTRATOR (WITHIN THE MEANING OF SECTION 414(G)) SHALL FILE AN
ACTUARIAL STATEMENT OF VALUATION EVIDENCING COMPLIANCE WITH THE
REQUIREMENTS OF SECTION 401(A) (12). //ANTE, P. 937.//
"(C) EMPLOYER.--FOR PURPOSES OF THIS SECTION, THE TERM 'EMPLOYER'
INCLUDES A PERSON DESCRIBED IN SECTION J01(C) (4) //26 USC 401.// AND
AND INDIVIDUAL WHO ESTABLISHES AN INDIVIDUAL RETIREMENT ACCOUNT OR
ANNUITY DESCRIBED IN SECTION 408.
"(D) CROSS REFERENCES.--,
"FOR PROVISIONS RELATING TO PENALTIES FOR FAILURE TO FILE A RETURN
REQUIRED BY THIS SECTION, SEE SECTION 6652(F).
"FOR COORDINATION BETWEEN THE DEPARTMENT OF THE TREASURY AND THE
DEPARTMENT OF LABOR WITH RESPECT TO THE INFORMATION REQUIRED UNDER THIS
SECTION, SEE SECTION 3004 OF TITLE III OF THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974.".
(B) SANCTIONS.--,
(1) FAILURE TO FILE REGISTRATION STATEMENTS OR NOTIFICATION OF
CHANGE STATUS.--,
(A) SECTION 6652 //26 USC 6652.// (RELATING TO FAILURE TO FILE
CERTAIN INFORMATION RETURNS) IS AMENDED BY REDESIGNATING (E) AS
SUBSECTION (G) AND BY INSERTING AFTER SUBSECTION (D) THE FOLLOWING
NEW SUBSECTIONS:
"(E) ANNUAL REGISTRATION AND OTHER NOTIFICATION BY PENSION PLAN.--,
"(1) REGRISTRATION.--IN THE CASE OF ANY FAILURE TO FILE A
REGISTRATION STATEMENT REQUIRED UNDER SECTION 6057(A) //ANTE, P.
943.// (RELATING TO ANNUAL REGISTRATION OF CERTAIN PLANS) WHICH
INCLUDES ALL PARTICIPANTS REQUIRED TO BE INCLUDED IN SUCH
STATEMENT, ON THE DATE PRESCRIBED THEREFOR (DETERMINED WITHOUT
REGARDE TO ANY EXTENSION OF TIME FOR FILING), UNLESS IT IS SHOWN
THAT SUCH FAILURE IS DUE TO REASONABLE CAUSE, THERE SHALL BE PAID
(ON NOTICE AND DEMAND BY THE SECRETARY OR HIS DELEGATE AND IN THE
SAME MANNER AS TAX) BY THE PERSON FAILING SO TO FILE, AN AMOUNT
EQUAL TO $1 FOR EACH PARTICIPANT WITH RESPECT TO WHOM THERE IS A
FAILURE TO FILE, MULTIPLIED BY THE NUMBER OF DAYS DURING WHICH
SUCH FAILURE CONTINUES, BUT THE TOTAL AMOUNT IMPOSED UNDER THIS
PARAGRAPH ON ANY PERSON FOR ANY FAILURE TO FILE WITH RESPECT TO
ANY PLAN YEAR NOT EXCEED $5,000.
"(2) NOTIFICATION OF CHANGE OF STATUS.--IN THE CASE OF FAILURE
TO FILE A NOTIFICATION REQUIRED UNDER SECTION 6057(B) //ANTE, P.
943.// (RELATING TO NOTIFICATION OF CHANGE OF STATUS) ON THE DATE
PRESCRIBED THEREFOR (DETERMINED WITHOUT REGARD TO ANY EXTENSION OF
TIME FOR FILING), UNLESS IT IS SHOWN THAT SUCH FAILURE IS DUE TO
REASONABLE CAUSE, THERE SHALL BE PAID (ON NOTICE AND DEMAND BY THE
SECRETARY OR HIS DELEGATE AND IN THE SAME MANNER AS TAX) BY THE
PERSON FAILING SO TO FILE, $1 FOR EACH DAY DURING WHICH SUCH
FAILURE CONTINUES, BUT THE TOTAL AMOUNTS IMPOSED UNDER THIS
PARAGRAPH ON ANY PERSON FOR FAILURE TO FILE ANY NOTIFICATION SHALL
NOT EXCEED $1,000.
"(F) INFORMATION REQUIRED IN CONNECTION WITH CERTAIN PLANS OF
DEFERRED COMPENSATION.--IN THE CASE OF FAILURE TO FILE A RETURN OR
STATEMENT REQUIRED UNDER SECTION 6058 //ANTE, P. 945.// (RELATING TO
INFORMATION REQUIRED IN CONNECTION EITH CERTAIN PLANS OF DEFERRED
COMPENSATION) OR 6047 //POST, P. 970.// (RELATING TO INFORMATION
RELATING TO CERTAIN TRUSTS AND ANNUITY AND BOND PURCHASE PLANS) ON THE
DATE AND IN THE MANNER PRESCRIBED THEREFOR (DETERMINED WITH REGARD TO
ANY EXTENSION OF TIME FOR FILING), UNLESS IT IS SHOWN THAT SUCH FAILURE
IS DUE TO REASONABLE CAUSE, THERE SHALL BE PAID (ON NOTICE AND DEMAND BY
THE SECRETARY FOR HIS DELEGATE AND IN THE SAME MANNER AS TAX) BY THE
PERSON FAILING SO TO FILE $10 FOR EACH DAY DURING WHICH SUCH FAILURE
CONTINUES, BUT THE TOTAL AMOUNT IMPOSED UNDER THIS SUBSECTION ON ANY
PERSON FOR FAILURE TO FILE ANY RETURN SHALL NOT EXCEED $5,000."
(B) (I) THE SECTION HEADING FOR SECTION 6652 //26 USC 6652.//
IS AMENDED BY ADDING, "REGISTRATION STATEMENTS, ETC." BEFORE THE
PERIOD AT THE END THEREOF.
(II) THE ITEM RELATING TO SECTION 6652 IN THE TABLE OF CONTENTS
FOR SUBCHAPTER A OF CHAPTER 68 IS AMENDED BY ADDING ",
REGISTRATION STATEMENTS, ETC." BEFORE THE PERIOD OF THE END
THEREOF.
(2) FAILURE TO FURNISH STATEMENT TO PARTICIPANT.--,
(A) SUBCHAPTER B OF CHAPTER 68 //26 USC 6671.// (RELATING TO
ASSESSABLE PENALTIES) IS AMENDED BY ADDING AT THE END THEREOF THE
FOLLOWING NEW SECTION:
STATEMENT TO PLAN PARTICIPANT.
"ANY PERSON REQUIRED UNDER SECTION 6057(E) TO FURNISH A STATEMENT TO
A PARTICIPANT WHO WILLFULLY FURNISHES A FALSE OR FRAUDULENT STATEMENT,
OR WHO WILLFULLY FAILS TO FURNISH A STATEMENT IN THE MANNER, AT THE
TIME, AND SHOWING THE INFORMATION REQUIRED UNDER SECTION 6057(E), OR
REGULATIONS PRESCRIBED THEREUNDER, SHALL FOR EACH SUCH ACT, OR FOR EACH
SUCH FAILURE, BE SUBJECT TO A PENALTY UNDER THIS SUBCHAPTER OF $50,
WHICH SHALL BE ASSESSED AND COLLECTED IN THE SAME MANNER AS THE TAX ON
EMPLOYERS IMPOSED BY SECTION 3111." //26 USC 3111.//
BY ADDING AT THE END THEREOF THE FOLLOWING NEW ITEM:
"SEC. 6690. FRAUDULENT STATEMENT FOR FAILURE TO FURNISH STATEMENT TO
PLAN PARTICIPANT."
(C) CLERICAL AMENDMENTS.--,
(1) THE TABLE OF SUBPARTS FOR SUCH PART III IS AMENDED BY
ADDING AT THE END THEREOF THE FOLLOWING:
"SUBPART E REGISTRATION OF AND INFORMATION CONCERNING PENSION, ETC.,
PLANS."
(2) SECTION 6033(C) (RELATING TO CRESS REFERENCES) IS AMENDED
BY ADDING AT THE END THEREOF THE FOLLOWING:
"FOR PROVISIONS RELATING TO INFORMATION REQUIRED IN CONNECTION WITH
CERTAIN PLANS OF DEFERRED COMPENSATION. SEE SECTION 6058."
(3) SUBSECTION (D) OF SECTION 6047 //26 USC 6047.// (RELATING
TO INFORMATION WITH RESPECT TO CERTAIN TRUST AND ANNUITY AND BOND
PURCHASE PLANS) IS AMENDED TO READ AS FOLLOWS:
"(D) CROSS REFERENCES.--,
"(1) FOR PORVISIONS RELATING TO PENALTIES FOR FAILURE TO FILE A
RETURN REQUIRED BY THIS SECTION, SEE SECTION 6652(F).
"(2) FOR CRIMINAL PENALTY FOR FURNISHING FRAUDULENT INFORMATION, SEE
SECTION 7207."
WELFARE.
TITLE XI OF THE SOCIAL SECURITY ACT (RELATING TO GENERAL PROVISIONS)
IS AMENDED BY ADDING AT THE END OF PART A //42 USC 1320B.// THEREOF THE
FOLLOWING NEW SECTION:
"SEC. 1131. //42 USC 1320B.// (A) WHENEVER--,
"(1) THE SECRETARY MAKES A FINDING OF FACT AND A DECISION AS
TO--,
"(A) THE ENTITLEMENT OF ANY INDIVIDUAL TO MONTHLY BENEFITS
UNDER SECTION 202, 223, OR 228, //42 USC 402, 423, 428.//
"(B) THE ENTITLEMENT OF ANY INDIVIDUAL TO A LUMP-SUM DEATH
PAYMENT PAYABLE UNDER SECTION 202(I) ON ACCOUNT OF THE DEATH OF
ANY PERSON TO WHOM SUCH INDIVIDUAL IS RELATED BY BLOOD, MARRIAGE,
OR ADOPTION, OR
"(C) THE ENTITLEMENT UNDER SECTION 226 //42 USC 426.// OF ANY
INDIVIDUAL TO HOSPITAL INSURANCE BENEFITS UNDER PART A OF TITLE
XVIII, OR HE SHALL TRANSMIT TO THE INDIVIDUAL REFERRED TO IN
PARAGRAPH (1) OR THE INDIVIDUAL MAKING THE REQUEST UNDER PARAGRAPH
(2) ANY INFORMATION, AS REPORTED BY THE EMPLOYER, REGARDING ANY
DEFERRED VESTED BENEFIT TRANSMITTED TO THE SECRETARY PURSUANT TO
SUCH SECTION 6057 WITH RESPECT TO THE INDIVIDUAL REFERRED TO IN
PARAGRAPH (1) OR (2) (A) OR THE PERSON ON WHOSE WAGES AND
SELF-EMPLOYMENT INCOME ENTITLEMENT (OR CLAIM OF ENTITLEMENT) IS
BASED .
"(B) (!) FOR PURPOSES OF SECTION 201(G) (1), //42 USC 401.// EXPENSES
INCURRED IN THE ADMINISTRATION OF SUBSECTION (A) SHALL BE DEEMED TO BE
EXPENSES INCURRED FOR THE ADMINISTRATION OF TITLE II.
"(2) THERE ARE HEREBY AUTHORIZED TO BE APPROPRIATED TO THE FEDERAL
OLD-AGE AND SURVIVORS INSURANCE TRUST FUND FOR EACH FISCAL YEAR
(COMMENCING WITH THE FISCAL YEAR ENDING JUNE 30, 1974) SUCH SUMS AS THE
SECRETARY DEEMS NECESSARY ON ACCOUNT OF ADDITIONAL ADMINISTRATIVE
EXPENSES RESULTING FROM THE ENACTMENT OF THE PROVISIONS OF SUBSECTION
(A)."
(A) REPORTS BY ACTUARIES.--SUBPART E OF PART III OF SUBCHAPTER A OF
CHAPTER 61 (RELATING TO REGISTRATION OF INFORMATION CONCERNING PENSION,
ETC., PLANS) AS ADDED BY SECTION 1031(A) OF THIS ACT //ANTE, P. 943.//
IS AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING NEW SECTION:
"(A) GENERAL RULE.--THE ACTUARIAL REPORT DESCRIBED IN SUBSECTION (B)
SHALL BE FILED BY THE PLAN ADMINISTRATOR (AS DEFINED IN SECTION 414(G)
//ANTE, PP. 925, 914.// OF EACH DEFINED BENEFIT PLAN TO WHICH SECTION
412 APPLIES, FOR THE FIRST PLAN YEAR FOR WHICH SECTION 412 APPLIES TO
THE PLAN AND FOR EACH THIRD PLAN YEAR THEREAFTER (OR MORE FREQUENTLY IF
THE SECRETARY OR HIS DELEGATE DETERMINES THAT MORE FREQUENT REPORTS ARE
NECESSARY).
"(B) ACTARIAL REPORT.--THE ACTUARIAL REPORT OF A PLAN REQUIRED BY
SUBSECTION (A) SHALL BE PREPARED AND SIGNED BY AN ENROLLED ACTUARY
(WITHIN THE MEANING OF SECTION 7701(A) (35)) //26 USC 7701.// AND SHALL
CONTAIN--,
"(1) A DESCRIPTION OF THE FUNDING METHOD AND ACTUARIAL
ASSUMPTIONS USED TO DETERMINE COSTS UNDER THE PLAN,
"(2) A CERTIFICATION OF THE CONTRIBUTION NECESSARY TO REDUCE
THE ACCUMULATED FUNDING DEFICIENCY (AS DEFINED IN SECTION 412(A))
TO ZERO,
"(3) A STATEMENT--,
"(A) THAT TO THE BEST OF HIS KNOWLEDGE THE REPORT IS COMPLETE
AND ACCURATE, AND
"(B) THE REQUIREMENTS OF SECTION 412(C) (RELATING TO REASONABLE
ACTUARIAL ASSUMPTIONS) HAVE BEEN COMPLIED WITH,
"(4) SUCH OTHER INFORMATION AS MAY BE NECESSARY TO FULLY AND
FAIRLY DISCLOSE THE ACTUARIAL POSITION OF THE PLAN, AND
"(5) SUCH OTHER INFORMATION REGARDING THE PLAN AS THE SECRETARY
OR HIS DELEGATE MAY BY REGULATIONS REQUIRE.
"(C) TIME AND MANNER OF FILING.--THE ACTUARIAL REPORT AND STATEMENT
REQUIRED BY THIS SECTION SHALL BE FILED AT THE TIME AND IN THE MANNER
PROVIDED BY REGULATIONS PRESCRIBED BY THE SECRETARY OR HIS DELEGATE.
"(D) CROSS REFERENCE.--,
"FOR COORDINATION BETWEEN THE DEPARTMENT OF THE TREASURY AND THE
DEPARTMENT OF LABOR WITH RESPECT TO THE REPORT REQUIRED TO BE FILED
UNDER THIS SECTION, SEE SECTION 3004 OF TITLE III OF THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974.".
(B) ASSESSABLE PENALTIES.--SUBCHAPTER B OF CHAPTER 68 (RELATING TO
ASSESSABLE PENALTIES) //ANTE, P. 946.// IS AMENDED BY ADDING AT THE END
THEREOF THE FOLLOWING NEW SECTION:
"THE PLAN ADMINISTRATOR (AS DEFINED IN SECTION 414(G)) OF EACH
DEFINED BENEFIT PLAN TO WHICH SECTION 412 APPLIES WHO FAILS TO FILE THE
REPORT REQUIRED BY SECTION 6059 //ANTE, P. 947.// AT THE TIME AND IN THE
MANNER REQUIRED BY SECTION 6059, SHALL PAY A PENALTY OF $1,000 FOR EACH
SUCH FAILURE UNLESS IT IS SHOWN THAT SUCH FAILURE IS DUE TO REASONABLE
CAUSE."
(C) CONSOLIDATION OF ACTUARIAL REPORTS.-- //26 USC 6059 NOTE.// THE
SECRETARY OF THE TREASURY AND THE SECRETARY OF LABOR SHALL TAKE SUCH
STEPS AS MAY BE NECESSARY TO ASSURE COORDINATION TO THE MAXIMUM EXTENT
FEASIBLE BETWEEN THE ACRUARIAL REPORTS REQUIRED BY SECTION 6059 OF THE
INTERNAL REVENUE CODE OF 1954 AND BY SECTION 103(D) OF TITLE I OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974. //ANTE, P. 841.//
(D) CLERICAL AMENDMENT.--THE TABLE OF SECTIONS FOR SUBCHAPTER B OF
CHAPTER 68 IS AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING NEW
ITEM:
"SEC. 6692. FAILURE TO FILE ACTUARIAL REPORT."
THIS PART SHALL TAKE EFFECT UPON THE DATE OF THE ENACTMENT OF THIS
ACT; EXCEPT THAT--,
(1) THE REQUIREMENTS OF SECTION 6059 OF THE INTERNAL REVENUE
CODE OF 1954 SHALL APPLY WITH RESPECT TO PLAN YEARS TO WHICH PART
I OF THIS TITLE APPLIES,
(2) THE REQUIREMENTS OF SECTION 6057 OF SUCH CODE //ANTE, P.
943.// SHALL APPLY ONLY WITH RESPECT TO PLAN YEARS BEGINNING AFTER
DECEMBER 31, 1975,
(3) THE REQUIREMENTS OF SECTION 6058(A) OF SUCH CODE //ANTE, P.
945.// SHALL APPLY ONLY WITH RESPECT TO PLAN YEARS BEGINNING AFTER
THE DATE OF THE ENACTMENT OF THIS ACT, AND
(4) THE AMENDMENTS MADE BY SECTION 1032 SHALL TAKE EFFECT ON
JANUARY 1, 1978.
(A) IN GENERAL.--SUBCHAPTER C OF CHAPTER 76 //26 USC 7441.//
(RELATING TO THE TAX) COURT, IS AMENDED BY ADDING AT THE END THEREOF THE
FOLLOWING NEW PART:
"SEC. 7476. DECLARATORY JUDGMENTS.
"(A) CREATION OF REMEDY.--IN A CASE OF ACTUAL CONTROVERSY
INVOLVING--,
"(1) A DETERMINATION BY THE SECRETARY OR HIS DELEGATE WITH
RESPECT TO THE INITIAL QUALIFICATION OR CONTINUING QUALIFICATION
OF A RETIREMENT PLAN UNDER SUBCHAPTER D OF CHAPTER I, OR
"(2) A FAILURE BY THE SECRETARY OR HIS DELEGATE TO MAKE A
DETERMINATION WITH RESPECT TO--,
"(A) SUCH INITIAL QUALIFICATION, OR
"(B) SUCH CONTINUING QUALIFICATION IF THE CONTROVERSY ARISES
FROM A PLAN AMENDMENT OR PLAN TERMINATION, UPON THE FILING OF AN
APPRORRIATE PLEADING, THE UNITED STATES TAX COURT MAY MAKE A
DECLARATION WITH RESPECT TO SUCH INITIAL QUALIFICATION OR
CONTINUING QUALIFICATION. ANY SUCH DECLARATION SHALL HAVE THE
FORCE AND EFFECT OF A DECISION OF THE TAX COURT AND SHALL BE
REVIEWABLE AS SUCH.
"(B) LIMITATIONS.--,
"(1) PETITIONER.--A PLEADING MAY BE FILED UNDER THIS SECTION
ONLY BY A PETITIONER WHO IS THE EMPLOYER, THE PLAN ADMINISTRATOR,
AN EMPLOYEE WHO HAS QUALIFIED UNDER REGULATIONS PRESCRIBED BY THE
SECRETARY OR HIS DELEGATE AS AN INTERESTED PARTY FOR PURPOSES OF
PURSUING ADMINISTRATIVE REMEDIES WITHIN THE INTERNAL REVENUE
SERVICE, OR THE PENSION BENEFIT GUARANTY CORPORATION.
"(2) NOTICE.--FOR PURPOSES OF THIS SECTION, THE FILING OF A
PLEADING BY ANY PETITIONER MAY BE HELD BY THE TAX COURT TO BE
PREMATURE, UNLESS THE PETITIONER ESTABLISHES TO THE SATISFACTION
OF THE COURT THAT HE HAS COMPLIED WITH THE REQUIREMENTS PRESCRIBED
BY REGULATIONS OF THE SECRETARY OR HIS DELEGATE WITH RESPECT TO
NOTICE TO OTHER INTERESTED PARTIES OF THE FILING OF THE REQUEST
FOR A DETERMINATION REFERRED TO IN SUBSECTION (A).
"(3) EXHAUSTION OF ADMINISTRATIVE REMEDIES.--THE TAX COURT
SHALL NOT ISSUE A DECLARATORY JUDGMENT OR DECREE UNDER THIS
SECTION IN ANY PROCEEDING UNLESS IT DETERMINES THAT THE PETITIONER
HAS EXHAUSTED ADMINISTRATIVE REMEDIES AVAILABLE TO HIM WITHIN THE
INTERNAL REVENUE SERVICE. A PETITIONER SHALL NOT BE DEEMED TO
HAVE EXHAUSTED HIS ADMINISTRATIVE REMEDIES WITH RESPECT TO A
FAILURE BY THE SECRETARY OR HIS DELEGATE TO MAKE A DETERMINATION
WITH RESPECT TO INITIAL QUALIFICATION OR CONTINUING QUALIFICATION
OF A RETIREMENT PLAN BEFORE THE EXPIRATION OF 270 DAYS AFTER THE
REQUEST FOR SUCH DETERMINATION WAS MADE.
"(4) PLAN PUT INTO EFFECT.--NO PROCEEDING MAY BE MAINTAINED
UNDER THIS SECTION UNLESS THE PLAN (AND, IN THE CASE OF A
CONTROVERSY INVOLVING THE CONTINUING QUALIFICATION OF THE PLAN
BECAUSE OF AN AMENDMENT TO THE PLAN, THE AMENDMENT) WITH RESPECT
TO WHICH A DECISION OF THE TAX COURT IS SOUGHT HAS BEEN PUT INTO
EFFECT BEFORE THE FILING OF THE PLEADING. A PLAN OR AMENDMENT
SHALL NOT BE TREATED AS NOT BEING IN EFFECT MERELY BECAUSE UNDER
THE PLAN THE FUNDS CONTRIBUTED TO THE PLAN MAY BE REFUNDED IF THE
PLAN (OR THE PLAN AS SO AMENDED) IS FOUND TO BE NOT QUALIFIED.
"(5) TIME FOR BRINGING ACTION.--IF THE SECRETARY OR HIS
DELEGATE SENDS BY CERTIFIED OR REGISTERED MAIL NOTICE OF HIS
DETERMINATION WITH RESPECT TO THE QUALIFICATION OF THE PLAN TO THE
PERSONS REFERRED TO IN PARAGRAPH (1), TO ANY INDIVIDUAL DESIGNATED
UNDER REGULATIONS PRESCRIBED BY THE SECRETARY OR HIS DELEGATE AS A
REPRESENTATIVE OF SUCH EMPLOYEE), NO PROCEEDING MAY BE INITIATED
UNDER THIS SECTION BY ANY PERSON UNLESS THE PLEADING IS FILED
BEFORE THE NINETY-FIRST DAY AFTER THE DAY AFTER SUCH NOTICE IS
MAILED TO SUCH PERSON (OR TO HIS DESIGNATED REPRESENTATIVE, IN THE
CASE OF AN EMPLOYEE).
"(4) COMMISSIONERS.--THE CHIEF JUDGE OF THE TAX COURT MAY
ASSIGN PROCEEDINGS UNDER THIS SECTION TO BE HEARD BY THE
COMMISSIONERS OF THE COURT, AND THE COURT MAY AUTHORIZE A
COMMISSIONER TO MAKE THE DECISION OF THE COURT WITH RESPECT TO
SUCH PROCEEDING, SUBJECT TO SUCH CONDITIONS AND REVIEW AS THE
COURT MAY RULE PROVIDE.
"(D) RETIREMENT PLAN.--FOR PURPOSES OF THIS SECTION, THE TERM
'RETIREMENT PLAN' MEANS--,
"(1) A PENSION, PROFIT-SHARING, OR STOCK BONUS PLAN DESCRIBED
IN SECTION 401(A) //26 USC 401.// OR A TRUST WHICH IS PART OF SUCH
A PLAN,
"(2) A ANNUITY PLAN DESCRIBED IN SECTION 403(A), //26 USC
403.// OR
"(3) A BOND PURCHASE PLAN DESCRIBED IN SECTION 405(A). //26
USC 405.//
"(E) CROSS REFERENCE.--,
"FOR PROVISIONS CONCERNING INTERVENTION BY PENSION BENEFIT GUARANTY
CORPORATION AND SECRETARY OF LABOR IN ACTIONS BROUGHT UNDER THIS SECTION
AND RIGHT OF PENSION BENEFIT GUARANTY CORPORATION TO BRING ACTION, SEE
SECTION 3001(C) OF SUBTITLE A OF TITLE III OF THE EMPLOYEE RETIREMENT
INCOME SECRUITY ACT OF 1974."
(B) TECHNICAL AND CONFORMING AMENDMENTS.--,
(1) FEE FOR FILING PETITION.--SECTION 7451 //26 USC 7451.//
(RELATING TO FEE FOR FILING PETITION) IS AMENDED BY STRIKING OUT
"DEFICIENCY" AND INSERTING IN LIEU THEREOF "DEFICIENCY OR FOR A
DECLARATORY JUDGMENT UNDER PART IV OF THIS SUBCHAPTER".
(2) DATE OF DECISION.--SECTION 7459(C) (RELATING TO DATE OF
DESISION) IS AMENDED BY INSERTING BEFORE THE PERIOD AT THE END OF
THE FIRST SENTENCE THE FOLLOWING: "OR, IN THE CASE OF A
DECLARATORY JUDGMENT PROCEEDING UNDER PART IV OF THIS SUBCHAPTER,
THE DATE OF THE COURT'S ORDER ENTERING THE DECISION".
(3) VENUE FOR APPEAL OF DECISION.--,
(A) SECTION 7482(B) (1) (RELATING TO VENUE) IS AMENDED BY
STRIKING OUT THE PERIOD AT THE END OF SUBPARAGRAPH (B) AND
INSERTING IN LIEU THEREOF", OR" AND INSERTING AFTER SUBPARAGRAPH
(B) THE FOLLOWING NEW PARAGRAPH:
"(C) IN THE CASE OF A PERSON SEEKING A DECLARATORY DECISION
UNDER SECTION 7476, //ANTE, P. 949.// THE PRINCIPAL PLACE OF
BUSINESS, OR PRINCIPAL OFFICE OR AGENCY OF THE EMPLOYER."
(B) SECTION 7482(B) (1) IS FURTHER AMENDED--,
(I) BY STRIKING OUT "NEITHER SUBPARAGRAPH (A) NOR (B) APPLIES"
AND INSERTING IN LIEU THEREOF SUBPARAGRAPH (A), (B), AND (C) DO
NOT APPLY"; AND
(II) BY INSERTING BEFORE THE PERIOD AT THE END OF THE LAST
SENTENCE THEREOF THE FOLLOWING: "OR AS OF THE TIME THE PETITION
SEEKING A DECLARATORY DECISION UNDER SECTION 7476 //ANTE, P.
949.// WAS FILED WITH THE TAX COURT".
(C) CLERICAL AMENDMENT.--THE TABLE OF PARTS FOR SUBCHAPTER C OF
CHAPTER 76 (RELATING TO THE TAX COURT) IS AMENDED BY ADDING AT THE END
THEREOF THE FOLLOWING NEW ITEM:
"PART IV. DECLARATORY JUDGMENTS RELATING TO QUALIFICATIONS OF
CERTAIN RETIREMENT PLANS.".
(D) EFFECTIVE DATE. //26 USC 7476 NOTE.//--THE AMENDMENTS MADE BY
THIS SECTION SHALL APPLY TO PLEADINGS FILED MORE THAN 1 YEAR AFTER THE
DATE OF THE ENACTMENT OF THIS ACT.
(A) IN GENERAL. //24 USC 7802.// SECTION 7802 (RELATING TO
COMMISSIONER OF INTERNAL REVENUE) IS AMENDED TO READ AS FOLLOWS:
COMMISSIONER
(EMPLOYEE PLANS AND EXEMPT ORGANIZATIONS).
"(A) COMMISSIONER OF INTERNAL REVENUE.--THERE SHALL BE IN THE
DEPARTMENT OF THE TREASURY A COMMISSIONER OF INTERNAL REVENUE, WHO SHALL
BE APPOINTED BY THE PRESIDENT, BY AND WITH THE ADVICE AND CONSENT OF THE
SENATE. THE COMMISSIONER OF INTERNAL REVENUE SHALL HAVE SUCH DUTIES AND
POWERS AS MAY BE PRESCRIBED BY THE SECRETARY.
"(B) ASSISTANT COMMISSIONER FOR EMPLOYEE PLANS AND EXEMPT
ORGANIZATIONS.--THERE IS ESTABLISHED WITHIN THE INTERNAL REVENUE SERVICE
AN OFFICE TO BE KNOWN AS THE 'OFFICE OF EMPLOYEE PLAN AND EXEMPT
ORGANIZATIONS' TO BE UNDER THE SUPERVISION AND DIRECTION OF AN ASSISTANT
COMMISSIONER OF INTERNAL REVENUE. AS HEAD OF THE OFFICE, THE ASSISTANT
COMMISSIONER SHALL BE RESPONSIBLE FOR CARRYING OUT SUCH FUNCTIONS AS THE
SECRETARY OR HIS DELEGATE MAY PRESCRIBE WITH RESPECT TO ORGANIZATIONS
EXEMPT FROM TAX UNDER SECTION 501(A) AND WITH RESPECT TO PLANS TO WHICH
PART I OF SUBCHAPTER D OF CHAPTER 1 APPLIES (AND WIT RESPECT TO
ORGANIZATIONS DESIGNED TO BE EXEMPT UNDER SUCH SECTION AND PLANS
DESIGNED TO BE PLANS TO WHICH SUCH PART APPLIES)."
(B) SALARIES.--,
(1) ASSISTANT COMMISSIONER.--SECTION 5109 OF TITLE 5, UNITED
STATES CODE, IS AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING
NEW SUBSCTION:
"(C) THE POSITION HELD BY THE EMPLOYEE APPOINTED UNDER SECTION 7802(
B) OF THE INTERNAL REVENUE CODE OF 1954 IS CLASSIFIED AT GS-18, AND IS
IN ADDITION TO THE NUMBER OF POSITIONS AUTHORIZED BY SECTION 5108(A) OF
THIS TITLE."
(2) CLASSIFICATION OF POSITIONS AT GS-16 AND 17, --SECTION 5108
OF TITLE 5, UNITED STATES CODE, IS AMENDED BY ADDING AT THE END
THEREOF THE FOLLOWING NEW SUBSECTION:
"(E) IN ADDITION TO THE NUMBER OF POSITIONS AUTHORIZED BY SUBSECTION
(A), THE COMMISSIONER OF INTERNAL REVENUE IS AUTHORIZED, WITHOUT REGARD
TO ANY OTHER PROVISION OF THIS SECTION, TO PLACE A TOTAL OF 20 POSITIONS
IN THE INTERNAL REVENUE SERVICE IN GS-16 AND 17.".
(C) CLERICAL AMENDMENTS.--THE ITEM RELATIN TO SECTION 7802 IN THE
TABLE OF SECTIONS FOR SUBCHAPTER A OF CHAPTER 80 IS AMENDED TO READ AS
FOLLOWS:
"SEC. 7802. COMMISSIONER OF INTERNAL REVENUE; ASSISTANT
COMMISSIONER (EMPLOYEE PLAN AND EXEMPT ORGANIZATIONS)."
(D) EFFECTIVE DATE. //26 USC 7802 NOTE.//--THE AMENDMENTS MADE BY
THIS SECTION SHALL TAKE EFFECT ON THE 90TH DAY AFTER THE DATE OF THE
ENACTMENT OF THIS ACT.
//31 USC 1037.//
THERE IS AUTHORIZED TO BE APPROPRIATED TO THE DEPARTMENT OF THE
TREASURY FOR THE PURPOSE OF CARRYING OUT ALL FUNCTIONS OF THE OFFICE OF
EMPLOYEE PLANS AND EXEMPT ORGANIZATIONS FOR EACH FISCAL YEAR BEGINNING
AFTER JUNE 30, 1974, AN AMOUNT EQUAL TO THE SUM OF--,
(1) SO MUCH OF THE COLLECTIONS FROM THE TAXES IMPOSED UNDER
SECTION 4940 OF SUCH CODE //26 USC 4940.// (RELATING TO EXCISE TAX
BASED ON INVESTMENT INCOME) AS WOULD HAVE BEEN COLLECTED IF THE
RATE OF TAX UNDER SUCH SECTION WAS 2 PERCENT DURING THE SECOND
PRECEDING FISCAL YEAR, AND
(2) THE GREATER OF--,
(A) AN AMOUNT EQUAL TO THE AMOUNT DESCRIBED IN PARAGRAPH (1),
OR
(B) $30,000,000.
INDIVIDUALS AND SHAREHOLDER-EMPLOYEES.
(A) INCREASE IN MAXIMUM AMOUNT DEDUCTIBLE FOR SELF-EMPLOYED
INDIVIDUALS.--,
(1) PARAGRAPH (1) OF SECTION 404(E) //26 USC 401.// (RELATING
TO SPECIAL LIMITATIONS FOR SELF-EMPLOYED INDIVIDUALS) IS
AMENDED--,
(A) BY STRIKING OUT "$2,500 OR 10 PERCENT" AND INSERTING IN
LIEU THEREOF "7,500 OR 15 PERCENT", AND
(B) BY STRIKING OUT "SUBJECT TO THE PROVISIONS OF PARAGRAPH
(2)" AND INSERTING IN LIEU THEREOF "SUBJECT TO PARAGRAPHS (2) AND
(4)".
(2) PARAGRAPH (2) (A) OF SECTION 404(E) IS AMENDED BY STRIKING
OUT "SHALL NOT EXCEED $2,500, OR 10 PERCENT" AND INSERTING IN LIEU
THEREOF "SHALL (SUBJECT TO PARAGRAPH (4)) NOT EXCEED $7,500, OR 15
PERCENT".
(3) SECTION 404(E) IS AMENDED BY ADDING AT THE END THEREOF THE
FOLLOWING NEW PARAGRAPH:
"(4) LIMITATIONS CANNOT BE LOWER THAN $750 OR 100 PERCENT OF
EARNDE INCOME.--THE LIMITATIONS UNDER PARAGRAPHS (1) AND (2) (A)
FOR ANY EMPLOYEE SHALL NOT BE LESS THAN THE LESSER OF--,
"(A) $750, OR
"(B) 100 PERCENT OF THE EARNED INCOME DERIVED BY SUCH EMPLOYEE
FROM THE TRADES OR BUSINESSES TAKEN INTO ACCOUNT FOR PURPOSES OF
PARAGRAPH (1) OR (2) (A) AS THE CASE MAY BE.".
(B) INCREASE IN MAXIMUM AMOUNT DEDUCTIBLE FOR SHAREHOLDER-EMPLOYEE.
--PARAGRAPH (1) OF SECTION 1379(B) //26 USC 1379.// (RELATING TO
TAXABILITY OF SHAREHOLDER-EMPLOYEES) IS AMENDED--,
(1) BY STRIKING OUT "10 PERCENT" IN SUBPARAGRAPH (A) AND
INSERTING IN LIEU THEREOF "15 PERCENT", AND
(2) BY STRIKING OUT "$2,500" IN SUBPARAGRAPH (B) AND INSERTING
IN LIEU THEREOF "$7,500".
(C) ONLY FIRST $100,000 OF ANNUAL COMPENSATION TO BE TAKEN INTO
ACCOUNT.--SUBSECTION (A) OF SECTION 401 //26 USC 401.// (RELATING TO
REQUIREMENTS FOR QUALIFICATION) IS AMENDED BY INSERTING AFTER PARAGRAPH
(16) THE FOLLOWING NEW PARAGRAPH:
"(17) IN THE CASE OF A PLAN WHICH PROVIDES CONTRIBUTIONS OR
BENEFITS FOR EMPLOYEES SOME OR ALL OF WHOM ARE EMPLOYEES WITHIN
THE MEANING OF SUBSECTION (C) (1), OR ARE SHAREHOLDER-EMPLOYEES
WITHIN THE MEANING OF SECTION 1379(D), ONLY IF THE ANNUAL
COMPENSATION OF EACH EMPLOYEE TAKEN INTO ACCOUNT UNDER THE PLAN
DOES NOT EXCEED THE FIRST $100,000 OF SUCH COMPENSATION."
(D) DEFINED BENEFIT PLANS FOR SELF-EMPLOYED INDIVIDUALS.--
"(18) IN THE CASE OF A TRUST WHICH IS PART OF A PLAN PROVIDING
A DEFINED BENEFIT FOR EMPLOYEES SOME OR ALL OF WHOM ARE EMPLOYEES
WITHIN MEANING OF SUBSECTION (C) (1), OR ARE SHAREHOLDER-EMPLOYEES
WITHIN THE MEANING OF SUBSECTION 1379(D),// 26 USC 1379.// ONLY IF
SUCH PLAN SATISFIES THE REQUIREMENTS OF SUBSECTION (J)."
(2) SICTION 40! //26 USC 401.// (RELATING TO QUALIFIED PENSION,
PROFIT-SHARING, AND STOCK BONUS PLANS) IS AMENDED BY REDESIGNATING
SUBSECTION (J) AS SUBSECTION (K) AND BY INSERTING AFTER SUBSECTION
(I) THE FOLLOWING NEW SUBSECTION:
"(J) DEFINED BENEFIT PLANS PROVIDING BENEFITS FOR SELF-EMPLOYED
INDIVIDUALS AND SHAREHOLDER-EMPLOYEES.--,
"(1) IN GENERAL.--A DEFINED BENEFIT PLAN SATISFIES THE
REQUIREMENTS OF THIS SUBSECTION ONLY IF THE BASIC BENEFIT ACRUING
UNDER THE PLAN FOR EACH PLAN YEAR OF PARTICIPATION BY AN EMPLOYEE
WITHIN THE MEANING OF SUBSECTION (C)(1) (OR A
SHAREHOLDER-EMPLOYEE) IS PERMISSABLE UNDER REGULATIONS PRESCRIBED
BY THE SECRETARY OR HIS DELEGATE UNDER THIS SUBSECTIONTO INSURE
THAT THERE WILL BE REASONABLE COMPARABILITY (ASSUMING LEVEL
FUNDING) BETWEEN THE MAXIMUM RETIREMENT BENEFITS WHICH MAY BE
PROVIDED WITH FAVORABLE TAX TREATMENT UNDER THIS TITLE FOR SUCH
EMPLOYEES UNDER--,
"(A) DEFINED CONTRIBUTION PLANS,
"(B) DEFINED BENEFIT PLANS, AND
"(C) A COMBINATION OF DEFINED CONTRIBUTION PLANS AND DEFINED
BENEFIT PLANS.
"(2) GUIDELINES FOR REGULATIONS.--THE REGULATIONS PRESCRIBED
UNDER THIS SUBSECTION SHALL PROVIDE THAT A PLAN DOES NOT SATISFY
THE REQUIREMENTS OF THSI SUBSECTION IF, UNDER THE PLAN, THE BASIC
BENEFIT OF ANY EMPLOYEE WITHIN THE MEANING OF SUBSECTION (C)(1)
(OR A SHAREHOLDER-EMPLOYEE) MAY EXCEED THE SUM OF THE PRODUCTS FOR
EACH PLAN YEAR OF PARTICIPATION OF--,
"(A) HIS ANNUAL COMPENSATION (NOT IN EXCESS OF $50,000) FOR
SUCH YEAR, AND
"(B) THE APPLICABLE PERCENTAGE DETERMINED UNDER PARAGRAPH
(3).
"(3) APPLICABLE PERCENTAGE.--,
"(A) TABLE.--FOR PURPOSES OF PARAGRAPH (2), THE APPLICABLE
PERCENTAGE FOR ANY INDIVIDUAL FOR ANY PLAN YEAR SHALL BE BASED ON
THE PERCENTAGE SHOWN ON THE FOLLOWING TABLE OPPOSITE HIS AGE WHEN
HIS CURRENT PERIOD OF PARTICIPATION IN THE PLAN BEGAN.
"(B) ADDITIONAL REQUIREMENTS.--THE REGULATIONS PRESCRIBED UNDER
THIS SUBSECTION SHALL INCLUDE PROVISIONS--,
"(I) FOR APPLICABLE PERCENTAGES FOR AGES BETWEEN ANY TWO AGES
SHOWN ON THE TABLE,
"(II) FOR ADJUSTING THE APPLICABLE PERCENTAGES IN THE CASE OF
PLANS PROVIDING BENEFITS OTHER THAN A BASIC BENEFIT,
"(III) THAT ANY INCREASE IN THE RATE OF ACCRUAL, AND ANY
INCREASE IN THE COMPENSATION BASE WHICH MAY BE TAKEN INTO ACCOUNT,
SHALL, WITH RESPECT ONLY TO SUCH INCREASE, BEGIN A NEW PERIOD OF
PARTICIPATION IN THE PLAN, AND
"(IV) WHEN APPROPRIATE, IN THE CASE OF PERIODS BEGINNING AFTER
DECEMBER 31, 1977, FOR ADJUSTMENTS IN THE APPLICABLE PERCENTAGE
BASED ON CHANGES IN PREVAILING INTEREST AND MORTALITY RATES
OCURRING AFTER 1973.
"(4) CERTAIN CONTRIBUTIONS AND BENEFITS MAY NOT BE TAKEN INTO
ACCOUNT.--A DEFINED BENEFIT PLAN WHICH PROVIDES CONTRIBUTIONS OR
BENEFITS FOR OWNER-EMPLOYEES DOES NOT SATISFY THE REQUIREMENTS OF THIS
SUBSECTON UNLESS SUCH PLAN MEETS THE REQUIREMENTS OF SUBSECTION (A)(4)
WITHOUT TAKING INTO ACCOUNT CONTRIBUTIONS OR BENEFITS UNDER CHAPTER 2
//26 USC 1401.// (RELATING TO TAX ON SELF-EMPLOYMENT INCOME ), CHAPTER
21 //26 USC 3101.// (RELATING TO FEDERAL INSURANCE CONTRIBUTIONS ACT,
TITLE II OF THE SOCIAL SECURITY ACT, //42 USC 401.// OR ANY OTHER
FEDERAL OR STATE LAW.
"(5) DEFINITIONS.--FOR PURPOSES OF THIS SUBSECTION--,
"(A) BASIC BENEFIT.--THE TERM 'BASIC BENEFIT' MEANS A BENEFIT
IN THE FORM OF A STRAIGHT LIFE ANNUITY COMMENCING AT THE LATER
OF--,
"(I) AGE 65, OR
"(II) THE DAY 5 YEARS AFTER THE DAY THE PARTICIPANT'S CURRENT
PERIOD OF PARTICIPATION BEGAN UNDER A PLAN WHICH PROVIDES NO
ANCILLARY BENEFITS AND TO WHICH EMPLOYEES DO NOT CONTRIBUTE.
"(B) SHAREHOLDER-EMPLOYEE.--THE TERM 'SHAREHOLDER-EMPLOYEE' HAS
THE SAME MEANING AS WHEN USED IN SECTION 1379(D). //26 USC
1379.//
"(C) COMPENSATION.--THE TERM 'COMPSENTION' MEANS--,
"(I) IN THE CASE OF AN EMPLOYEE WITHIN THE MEANING OF
SUBSECTION (C) (1), THE EARNED INCOME OF SUCH INDIVIDUAL, OR
"(II) IN THE CASE OF A SHAREHOLDER-EMPLOYEE, THE COMPENSATION
RECEIVED OR ACCURUED BY THE INDIVIDUAL FROM THE ELECTING SMALL
BUSINESS CORPORATION.
"(6) SPECIAL RULES.--SECTION 404(E) //ANTE, P.952.// (RELATING
TO SPECIAL LIMITATIONS FOR SELF-EMPLOYED INDIVIDUALS) AND SECTION
1379(B) (RELATING TO TAXABILITY OF SHAREHOLDER-EMPLOYEE
BENEFICIARIES) DO NOT APPLY TO A TRUST TO WHICH THIS SUBSECTION
APPLIES.".
"(E) REPEAL OF EXISTING TAX TREATMENT OF EXCESS CONTRIBUTIONS.--,
(1) THE LAST SENTENCE OF SECTION 401(D)(5) //26 USC 401.// IS
AMENDED TO READ AS FOLLOWS: "SUBPARAGRAPHS (A) AND (B) DO NOT
APPLY TO CONTRIBUTIONS DESCRIBED IN SUBSECTION (E)."
(2) PARAGRAPH (8) OF SECTION 401(D) IS REPEALED.
(3) SUBSECTION (E) OF SECTION 401 IS AMENDED TO READ AS
FOLLOWS:
"(E) CONTRIBUTIONS FOR PREMIUMS ON ANNUITY, ETC., CONTRACTS.--A
CONTRIBUTION BY THE EMPLOYER ON BEHALF OF AN OWNER-EMPLOYEE IS DESCRIBED
IN THIS SUBSECTION IF--,
"(1) UNDER THE PLAN SUCH CONTRIBUTION IS REQUIRED TO BE APPLIED
(DIRECTLY OR THROUGH A TRUSTEE) TO PAY PREMIUMS OR OTHER
CONSIDERATION FOR ONE OR MORE ANNUITY, ENDOWMENT, OR LIFE
INSURANCE CONTRACTS ON THE LIFEOF SUCH OWNER-EMPLOYEE ISSUED UNDER
THE PLAN,
"(2) THE AMOUNT OF SUCH CONTRIBUTION EXCEEDS THE AMOUNT
DEDUCTIBLE UNDER SECTION 404 WITH RESPECT TO CONTRIBUTIONS MADE BY
THE EMPLOYER ON BEHALF OF SUCH OWNER-EMPLOYEE UNDER THE PLAN, AND
"(3) THE AMOUNT OF SUCH CONTRIBUTION DOES NOT EXCEED THE
AVERAGE OF THE AMOUNTS WHICH WERE DEDUCTIBLE UNDER SECTION 404
WITH RESPECT TO CONTRIBUTIONS MADE BY THE EMPLOYER ON BEHALF OF
SUCH OWNER-EMPLOYER UNDER THE PLAN (OR WHICH WOULD HAVE BEEN
DEDUCTIBLE IF SUCH SECTION HAD BEEN IN EFFECT) FOR THE FIRST THREE
TAXABLE YEARS (A) PRECEDING THE YEAR IN WHICH THE LAST SUCH
ANNUITY, ENDOWMENT, OR LIFE INSURANCE CONTRACT WAS ISSUED UNDER
THE PLAN, AND (B) IN WHICH SUCH OWNER-EMPLOYEE DERIVED EARNED
INCOME FROM THE TRADE OR BUSINESS WITH RESPECT TO WHICH THE PLAN
IS ESTABLISHED, OR FOR SO MANY OF SUCH TAXABLE YEARS AS SUCH
OWNER-EMPLOYEE WAS ENGAGED IN SUCH TRADE OR BUSINESS AND DERIVED
EARNED INCOME THEREFROM.
IN THE CASE OF ANY INDIVIDUAL ON WHOSE BEHALF CONTRIBUTIONS DESCRIBED IN
PARAGRAPH (1) ARE MADE UNDER MORE THAN ONE PLAN AS AN OWNER-EMPLOYEE
DURING ANY TAXABLE YEAR, THE PRECEDING SENTENCE DOES NOT APPLY IF THE
AMOUNT OF SUCH CONTRIBUTIONS UNDER ALL SUCH PLANS FOR ALL SUCH YEARS
EXCEEDS $7,500. ANY CONTRIBUTION WHICH IS DESCRIBED IN THIS SUBSECTION
SHALL, FOR PURPOSES OF SECTION 4972(B), BE TAKEN INTO ACCOUNT AS A
CONTRIBUTION MADE BY SUCH OWNER-EMPLOYEE AS AN EMPLOYEE TO THE EXTENT
THAT THE AMOUNT OF SUCH CONTRIBUTION IS NOT DEDUCTIBLE UNDER SECTION 404
//26 USC 404.// FOR TAXABLE YEAR, BUT ONLY FOR THE PURPOSE OF APPLYING
SECTION 4972(B) TO OTHER CONTRIBUTIONS MADE BY SUCH OWNER-EMPLOYEE AS AN
EMPLOYEE."
(4) CLAUSE (II) OF SECTION 401(A) (10) (A) //26 USC 401.// IS
AMENDED BY STRIKING OUT "SUBSECTION (E)(3) (A)" AND INSERTING IN
LIEU THEREOF "SUBSECTION (E)".
(5) SUBPARAGRAPH (A) OF SECTION 72(M) (5) (A) IS AMENDED--,
(A) BY INSERTING "AND" AT THE END OF CLAUSE (I),
(B) BY STRIKING OUT THE COMMA AT THE END OF CLAUSE (II) AND THE
WORD "AND" FOLLOWING THAT COMMA, AND INSERTING IN LIEU THEREOF A
PERIOD, AND
(C) BY STRIKING OUT CLAUSE (III).
(F) TAX ON EXCESS CONTRIBUTIONS--,
(1) CHAPTER 43 (RELATING TO QUALIFIED PENSION, ETC., PLANS) IS
AMENDED BY INSERTING AFTER SECTION 4971 //ANTE, P. 920.// THE
FOLLOWING NEW SECTION:
INDIVIDUALS.
"(A) TAX IMPOSED.--IN THE CASE OF A PLAN WHICH PROVIDES CONTRIBUTIONS
OR BENEFITS FOR EMPLOYEES SOME OR ALL WHOM ARE EMPLOYEES WITHIN THE
MEANING OF SECTION 401(C)(1), THERE IS IMPOSED, FOR EACH TAXABLE YEAR OF
THE EMPLOYER WHO MAINTAINS SUCH PLAN, A TAX IN AN AMOUNT EQUAL TO 6
PERCENT OF THE AMOUNT OF THE EXCESS CONTRIBUTIONS UNDER THE PLAN
(DETERMINED AS OF THE CLOSE OF THE TAXABLE YEAR). THE TAX IMPOSED BY
THIS SUBSECTION SHALL BE PAID BY THE EMPLOYER WHO MAINTAINS THE PLAN.
THIS SECTION APPLIES ONLY TO PLAN WHICH INCLUDE A TRUST DESCRIBED IN
SECTION 401(A), WHICH ARE DESCRIBED IN SECTION 403( A), OR WHICH ARE
DESCRIBED IN SECTION 405(A).
"(B) EXCESS CONTRIBUTIONS.--,
"(1) IN GENERAL.--FOR PURPOSES OF THIS SECTION, THE TERM 'EXCESS
CONTRIBUTIONS' MEANS THE SUM OF THE AMOUNTS (IF ANY) DETERMINED UNDER
PARAGRAPHS (2), (3), AND (4), REDUCED BY THE SUM OF THE CORRECTING
DISTRIBUTIONS (AS DEFINED IN PARAGRAPH (5)) MADE IN ALL PRIOR TAXABLE
YEARS BEGINNING AFTER DECEMBER 31, 1975. FOR PURPOSES OF THIS
SUBSECTION THE AMOUNT OF ANY CONTRIBUTION WHICH IS ALLOCABLE (DETERMINED
UNDER REGULATIONS PRESCRIBED BY THE SECRETARY OR HIS DELEGATE) TO THE
PURCHASE OF LIFE, ACCIDENT, HEALTH, OR OTHER INSURANCE SHALL NOT BE
TAKEN INTO ACCOUNT.
"(2) CONTRIBUTIONS BY OWNER-EMPLOYEES.--THE AMOUNT DETERMINED UNDER
THIS PARAGRAPH, IN THE CASE OF A PLAN WHICH PROVIDES CONTRIBUTIONS OR
BENEFITS FOR EMPLOYEES SOME OR ALL OF WHOM ARE OWNER-EMPLOYEES (WITHIN
THE MEANING OF SECTION 401(C) (3)). //26 USC 401.// IS THE SUM OF--,
"(A) THE EXCESS (IF ANY) OF--,
"(I) THE AMOUNT CONTRIBUTED UNDER THE PLAN BY EACH
OWNER-EMPLOYEE (AS AN EMPLOYEE) FOR THE TAXABLE YEAR, OVER
"(II) THE AMOUNT PERMITTED TO BE CONTRIBUTED BY EACH
OWNER-EMPLOYEE (AS AN EMPLOYEE) FOR SUCH YEAR, AND
"(B) THE AMOUNT DETERMINED UNDER THIS PARAGRAPH FOR THE
PRECEDING TAXABLE YEAR OF THE EMPLOYER, REDUCED BY THE EXCESS (IF
ANY) OF THE AMOUNT DESCRIBED IN SUBPARAGRAPH (A) (II) OVER THE
AMOUNT DESCRIBED IN SUBPARAGRAPH (A) (I).
"(3) DEFINED BENEFIT PLANS.--THE AMOUNT DETERMINED UNDER THIS
PARAGRAPH IN THE CASE OF A DEFINED BENEFIT PLAN, IS THE AMOUNT
CONTRIBUTED UNDER THE PLAN BY THE EMPLOYER DURING THE TAXABLE YEAR
OR ANY PRIOR TAXABLE YEAR BEGINNING AFTER DECEMBER 31, 1975, IF--
"(A) AS OF THE CLOSE OF THE TAXABLE YEAR, THE FULL FUNDING
LIMITATION OF THE PLAN (DETERMINED UNDER SECTION 412 (C) (7)) IS
ZERO, AND
"(B) SUCH AMOUNT HAS NOT BEEN DEDUCTIBLE FOR THE TAXABLE YEAR
OR ANY PRIOR TAXABLE YEAR.
"(4) DEFINED CONTRIBUTION PLANS.--THE AMOUNT DETERMINED UNDER
THIS PARAGRAPH, IN THE CASE OF A PLAN OTHER THAN A DEFINED BENEFIT
PLAN, IS THE PROTION OF THE AMOUNTS CONTRIBUTED UNDER THE PLAN BY
THE EMPLOYER DURING THE TAXABLE YEAR AND EACH PRIOR TAXABLE YEAR
BEGINNING AFTER DECEMBER 31, 1975, WHICH HAS NOT BEEN DEDUCTIBLE
FOR THE TAXABLE YEAR OR ANY PRIOR TAXABLE YEAR,
"(5) CORRECTING DISTRIBUTION.--FOR PURPOSES OF THIS SUBSECTION
THE TERM 'CORRECTING DISTRIBUTION' MEANS--
"(A) IN THE CASE OF A CONTRIBUTION MADE BY AN OWNER-EMPLOYEE AS
AN EMPLOYEE, REGARDLESS OF THE TYPE OF THE PLAN, THE AMOUNT
DETERMINED UNDER PARAGRAPH (2) DISTRIBUTED TO THE OWNER-EMPLOYEE
WHO CONTRIBUTED SUCH AMOUNT,
"(B) IN THE CASE OF A DEFINED BENEFIT PLAN, THE AMOUNT
DETERMINED UNDER PARAGRAPH (3) WHICH IS DISTRIBUTED FROM THE PLAN
TO THE EMPLOYER, AND
"(C) IN THE CASE OF A DEFINED CONTRIBUTIONS PLAN, THE AMOUNT
DETERMINED UNDER PARAGRAPH (4) WHICH IS DISTRIBUTED FROM THE PLAN
TO THE EMPLOYER OR TO THE EMPLOYEE TO THE ACCOUNT OF WHOM THE
AMOUNT DESCRIBED WAS CONTRIBUTED.
"(C) AMOUNT PERMITTED TO BE CONTRIBUTED BY OWNER-EMPLOYEE.-- FOR
PURPOSES OF SUBSECTION (B) (2), THE AMOUNT PERMITTED TO BE CONTRIBUTED
UNDER A PLAN BY AN OWNER-EMPLOYEE (AS AN EMPLOYEE) FOR ANY TAXABLE YEAR
IS THE SMALLEST OF THE FOLLOWING:
"(1) $2,500,
"(2) 10 PERCENT OF THE EARNED INCOME (AS DEFINED IN SECTION
401(C) (2)) FOR SUCH TAXABLE YEAR DERIVED BY SUCH OWNER-EMPLOYEE
FROM THE TRADE OR BUSINESS WITH RESPECT TO WHICH THE PLAN IS
ESTABLISHED, OR
"(3) THE AMOUNT OF THE CONTRIBUTION WHICH WOULD BE CONTRIBUTED
BY THE OWNER-EMPLOYEE (AS AN EMPLOYEE) IF SUCH CONTRIBUTION WERE
MADE AT THE RATE OF CONTRIBUTIONS PERMITTED TO BE MADE BY
EMPLOYEES OTHER THAN OWNER-EMPLOYEES.
IN ANY CASE IN WHICH THERE ARE NO EMPLOYEES OTHER THAN OWNER-EMPLOYEES,
THE AMOUNT DETERMINED UNDER HE PRECEDING SENTENCE SHALL BE ZERO.
"(D) CROSS REFERENCE.--,
"FOR DISALLOWANCE OF DEDUCTION FOR TAXES PAID UNDER THIS SECTION, SEE
SECTION 275.".
(2) CLERICAL AMENDMENT.--THE TABLE OF SECTIONS FOR CHAPTER 43
IS AMENDED BY INSERTING AFTER THE ITEM RELATING TO SECTION 4971
THE FOLLOWING NEW ITEM:
"SEC. 4972. TAX ON EXCESS CONTRIBUTIONS FOR SELF-EMPLOYED
INDIVIDUALS.".
(G) PREMATURE DESTRIBUTIONS TO OWNER-EMPLOYEES.--,
(1) IN GENERAL.--SUBPARAGRAPH (B) OF SECTION 72(M) (5) //26 USC
72.// (RELATING TO PENALTIES APPLICABLE TO CERTAIN AMOUNTS
RECEIVED BY OWNER-EMPLOYEES) IS AMENDED TO READ AS FOLLOWS:
"(B) IF A PERSON RECEIVES AN AMOUNT TO WHICH THIS PARAGRAPH
APPLIES. HIS TAX UNDER THIS CHAPTER FOR THE TAXABLE YEAR IN WHICH
SUCH AMOUNT IS RECEIVED SHALL BE INCREASED BY AN AMOUNT EQUAL TO
10 PERCENT OF THE AMOUNT SO RECEIVED WHICH IS INCLUDIBLE IN HIS
GROSS INCOME SUCH TAXABLE YEAR."
(2) CONFORMING AMENDMENTS.--,
(A) SUBPARAGRAPHS (C), (D), AND (E) OF SECTION 72(M) (5) ARE
REPEALED.
(B) THE SECOND SENTENCE OF SECTION 46 (A) (3) AND THE SECOND
SENTENCE OF SECTION 50A(A) (3), AS EACH IS AMENDED BY SECTION
2005(C)(4) OF THIS ACT, ARE EACH AMENDED BY INSERTING AFTER "TAX
PREFERENCES)," THE FOLLOWING: "SECTION 72(M) (5) (B) (RELATING TO
10 PERCENT TAX ON PREMATURE DISTRIBUTIONS TO OWNER-EMPLOYEES),".
(C) THE THIRD SENTENCE OF SECTION 901(A), AS AMENDED BY SECTION
2005(C)(4) OF THIS ACT, IS AMENDED BY STRIKING OUT "TAX
PREFERENCES)," AND INSERTING IN LIEU THEREFOR "TAX PREFERENCES),
AGAINST THE TAX IMPOSED FOR THE TAXABLE YEAR UNDER SECTION 72(M)
(5) (B) (RELATING TO 10 PERCENT TAX ON PREMATURE DISTRIBUTIONS TO
TO OWNER-EMPLOYEES),".
(D) SUBPARAGRAPH (A) OF SECTION 56(A) (2) AND PARAGRAPH (1) OF
SECTION 56(C), AS EACH IS AMENDED BY SECTION 2005(C) (7) OF THIS
ACT, ARE EACH AMENDED BY STRIKING OUT "402(E)" AND INSERTING IN
LIEU THERE OF "72(M) (5) (B), 402 (E)".
(E) SECTION 404(A) (2) IS AMENDED BY STRIKING OUT "(16)" AND
INSERTING IN LIEU THEREOF "(16), (17), (18)".
(F) CLAUSE (II) OF SECTION 404(A) (9) (B) IS AMENDED TO D AS
FOLLOWS:
"(II) WITHOUT REGARD TO THE SECOND SENTENCE OF PARAGRAPH (3);
AND".
(H) WITHDRAWAL OF EMPLOYEE CONTRIBUTIONS OF OWNER-EMPLOYEES.--,
(1) SECTION 401(D) (4) (B) (RELATING TO ADDITIONAL REQUIREMENTS
FOR QUALIFICATION OF TRUSTS AND PLANS BENEFITING OWNER-EMPLOYEES)
IS AMENDED BY INSERTIN "IN EXCESS OF CONTRIBUTIONS MADE BY AN
OWNER-EMPLOYEE AS AN EMPLOYEE" AFTER "BENEFITS".
(2) PARAGRAPH (1) OF SECTION 72(M) (RELATING TO CERTAIN AMOUNTS
RECEIVED BEFORE ANNUITY STARTING DATE) IS REPEALED. (3) SECTION
72(M) (5) (A) (I) IS AMENDED BY STRIKING OUT "(WHETHER OR NOT PAID
BY HIM)" AND INSERTING IN LIEU THEREOF THE FOLLOWING: "(OTHER
THAN CONTRIBUTIONS MADE BY HIM AS AND OWNER-EMPLOYEE)".
(I) EFFECTIVE DATE.-- //26 USC 404 NOTE.//
(1) THE AMENDMENTS MADE BY SUBSECTIONS (A) AND (B) APPLY TO
TAXABLE YEARS BEGINNING AFTER SECEMBER 31, 1973.
(2) THE AMENDMENTS MADE BY SUBSECTION (C) APPLY TO
//26 USC 401 NOTE.//
(A) TAXABLE YEARS BEGINNING AFTER DECEMBER 31, 1975, AND
(B) ANY OTHER TAXABLE YEARS BEGINNING AFTER DECEMBER 31, 1973,
FOR WHICH CONTRIBUTIONS WERE MADE UNDER THE PLAN IN EXCESS OF THE
AMOUNTS PERMITTED TO BE MADE UNDER SECTIONS 404(E) AND 1379(B)
//ANTE, P. 952.// AS IN EFFECT ON THE DAY BEFORE THE DATE OF THE
ENACTMENT OF THIS ACT. //26 USC 1379.//
"(2) FOR AN INDIVIDUAL RETIREMENT ANNUITY DESCRIBED IN
SECTION
(3) THE AMENDMENTS MADE BY SUBSECTION (D) APPLY TO TAXABLE
YEARS BEGINNING AFTER DECEMBER 31, 1975.
(4) THE AMENDMENTS MADE BY SUBSECTION (E) AND (F) APPLY TO
CONTRIBUTIONS MADE IN TAXABLE YEARS BEGINNING AFTER DECEMBER 31,
1975.
(5) THE AMENDMENTS MADE BY SUBSECTION (G) //26 USC 72 NOTE.//
APPLY TO DISTRIBUTIONS MADE IN TAXABLE YEARS BEGINNING AFTER
DECEMBER 31, 1975.
(6) THE AMENDMENTS MADE BY SUBSECTION (H) APPLY TO TAXABLE
YEARS ENDING AFTER THE DATE OF ENACTMENT OF THIS ACT.
SEC. 2002. DEDUCTION FOR RETIREMENT SAVINGS.
(A) ALLOWANCE OF DEDUCTION.--,
(1) IN GENERAL.--PART VII OF SUBCHAPTER B OF CHAPTER 1 //26 USC
211.// (RELATING TO ADDITIONAL ITEMIZED DEDUCTIONS FOR
INDIVIDUALS) IS AMENDED BY REDESIGNATING SECTION 219 AS 220 AND BY
INSERTING AFTER SECTION 218 THE FOLLOWING NEW SECTION:
"(A) DEDUCTION ALLOWED.--IN THE CASE OF AN INDIVIDUAL, THERE IS
ALLOWED AS A DEDUCTION AMOUNTS PAID IN CASH DURING THE TAXABLE YEAR BY
OR ON BEHALF OF SUCH INDIVIDUAL FOR HIS BENEFIT--,
"(1) TO AN INDIVIDUAL RETIREMENT ACCOUNT DESCRIBED IN SECTION
408(A),
"(2) FOR AN INDIVIDUAL RETIREMENT ANNUITY DESCRIBED IN SECTION
408(B), OR
"(3) FOR A RETIREMENT BOND DESCRIBED IN SECTION 409 (BUT ONLY
IF THE BOND IS NOT REDEEMED WITHIN 12 MONTHS OF THE DATE OF ITS
ISSUANCE).
FOR PURPOSES OF THIS TITLE, ANY AMOUNT PAID BY AN EMPLOYER TO SUCH A
RETIREMENT ACCOUNT OR FOR SUCH A RETIREMENT ANNUITY OR RETIREMENT BOND
CONSTITUTES PAYMENT OF COMPENSATION TO THE EMPLOYEE (OTHER THAN A
SELF-EMPLOYED INDIVIDUAL WHO IS AN EMPLOYEE WITHIN THE MEANING OF
SECTION 401(C) (1) INCLUDIBLE IN HIS GROSS INCOME, WHETHER OR NOT A
DEDUCTION FOR SUCH PAYMENT IS ALLOWABLE UNDER THIS SECTION TO THE
EMPLOYEE AFTER THE APPLICATION OF SUBSECTION (B).
"(B) LIMITATIONS AND RESTRICTIONS.--,
"(1) MAXIMUM DEDUCTION.--THE AMOUNT ALLOWABLE AS A DEDUCTION
UNDER SUBSECTION (A) TO AN INDIVIDUAL FOR ANY TAXABLE YEAR MAY NOT
EXCEED AN AMOUNT EQUAL TO 15 PERCENT OF THE COMPENSATION
INCLUDIBLE IN HIS GROSS INCOME FOR SUCH TAXABLE YEAR, OR $1,500,
WHICHEVER IS LESS.
"(2) COVERED BY CERTAIN OTHER PLANS.--NO DEDUCTION IS ALLOWED
UNDER SUBSECTION (A) FOR AN INDIVIDUAL FOR THE TAXABLE YEAR IF FOR
ANY PART OF SUCH YEAR--,
"(A) HE WAS AN ACTIVE PARTICIPANT IN--,
"(I) A PLAN DESCRIBED IN SECTION 401(A) WHICH INCLUDES A TRUST
EXEMPT FROM TAX UNDER SECTION 501(A),
"(II) AN ANNUITY PLAN DESCRIBED IN SECTION 403(A),
"(III) A QUALIFIED BOND PURCHASE PLAN DESCRIBED IN SECTION
405(A), OR
"(IV) A PLAN ESTABLISHED FOR ITS EMPLOYEES BY THE UNITED
STATES, BY A STATE OR POLITICAL DIVISION THEREOF, OR BY AN AGENCY
OR INSTRUMENTALITY OF ANY OF THE FOREGOING, OR
"(B) AMOUNTS WERE CONTRIBUTED BY HIS EMPLOYER FOR AN ANNUITY
CONTRACT DESCRIBED IN SECTION 403 (B) //26 USC 403.// (WHETHER OR
NOT HIS RIGHTS IN SUCH CONTRACT ARE NONFORFEITABLE).
"(3) CONTRIBUTIONS AFTER AGE 70 1/2.--NO DEDUCTION IS ALLOWED
UNDER SUBSECTION (A) WITH RESPECT TO ANY PAYMENT DESCRIBED IN
SUBSECTION (A) WHICH IS MADE DURING THE TAXABLE YEAR OF AN
INDIVIDUAL WHO HAS ATTAINED AGE 70 1/2 BEFORE THE CLOSE OF SUCH
TAXABLE YEAR.
"(4) RECONTRIBUTED AMOUNTS.--NO DEDUCTION IS ALLOWED UNDER THIS
SECTION WITH RESPECT TO A ROLLOVER CONTRIBUTION DESCRIBED IN
SECTION 402(A) (5), 403(A) (4), 408(D) (3), OR 409(B) (3) (C).
//POST, PP. 991, 969, 964.//
"(5) AMOUNTS CONTRIBUTED UNDER ENDOWMENT CONTRACT.-- IN THE
CASE OF AN ENDOWMENT CONTRACT DESCRIBED IN SECTION 408(B), NO
DEDUCTION IS ALLOWED UNDER SUBSECTION (A) FOR THAT PORTION OF THE
AMOUNTS PAID UNDER THE CONTRACT FOR THE TAXABLE YEAR PROPERLY
ALLOCABLE, UNDER REGULATIONS PRESCRIBED BY THE SECRETARY OR HIS
DELEGATE, TO THE COST OF LIFE INSURANCE.
"(C) DEFINITIONS AND SPECIAL RULES.--,
"(1) COMPENSATION.--FOR PURPOSES OF THIS SECTION, THE TERM
'COMPENSATION' INCLUDES EARNED INCOME AS DEFINED IN SECTION 401(
C) (2).
"(2) MARRIED INDIVIDUALS.--THE MAXIMUM DEDUCTION UNDER
SUBSECTION (B) (1) SHALL BE COMPUTED SEPARATELY FOR EACH
INDIVIDUAL, AND THIS SECTION SHALL BE APPLIED WITHOUT REGARD TO
ANY COMMUNITY PROPERTY LAWS.".
(2) DEDUCTION ALLOWED IN ARRIVING AT ADJUSTED GROSS INCOME.--
SECTION 62 (DEFINING ADJUSTED GROSS INCOME) IS AMENDED BY
INSERTING AFTER PARAGRAPH (9) THE FOLLOWING NEW PARAGRAPH:
"(10) RETIREMENT SAVINGS.--THE DEDUCTION ALLOWED BY SECTION 219
(RELATING TO DEDUCTION OF CERTAIN RETIREMENT SAVINGS).".
(B) INDIVIDUAL RETIREMENT ACCOUNTS.--SUBPART A OF PART I OF
SUBCHAPTER D OF CHAPTER I //26 USC 401.// (RELATING TO RETIREMENT PLANS)
IS AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING NEW SECTION:
"(A) INDIVIDUAL RETIREMENT ACCOUNT.--FOR PURPOSES OF THIS SECTION,
THE TERM 'INDIVIDUAL RETIREMENT ACCOUNT' MEANS A TRUST CREATED OR
ORGANIZED IN THE UNITED STATES FOR THE EXCLUSIVE BENEFIT OF AN
INDIVIDUAL OR HIS BENEFICIARIES, BUT ONLY IF THE WRITTEN GOVERNING
INSTRUMENT CREATING THE TRUST MEETS THE FOLLOWING REQUIREMENTS:
"(1) EXCEPT IN THE CASE OF A ROLLOVER CONTRIBUTION DESCRIBED IN
SUBSECTION (D) (3) IN SECTION 402(A) (5), 403(A) (4), OR 409 (B)
(3) (C), NO CONTRIBUTION WILL BE ACCEPTED UNLESS IT IS IN CASH,
AND CONTRIBUTIONS WILL NOT BE ACCEPTED FOR THE TAXABLE YEAR IN
EXCESS OF $1,500 ON BEHALF OF ANY INDIVIDUAL.
"(2) THE TRUSTEE IS A BANK (AS DEFINED IN SECTION 401(D) (1))
OF SUCH OTHER PERSON WHO DEMONSTRATES TO THE SATISFACTION OF THE
SECRETARY OR HIS DELEGATE THAT THE MANNER IN WHICH SUCH OTHER
PERSON WILL ADMINISTER THE TRUST WILL BE CONSISTENT WITH THE
REQUIREMENTS OF THIS SECTION.
"(3) NO PART OF THE TRUST FUNDS WILL BE INVESTED IN LIFE
INSURANCE CONTRACTS.
"(4) THE INTEREST OF AN INDIVIDUAL IN THE BALANCE IN HIS
ACCOUNT IS NONFORFEITABLE.
"(5) THE ASSETS OF THE TRUST WILL NOT BE COMMINGLED WITH OTHER
PROPERTY EXCEPT IN A COMMON TRUST FUND OR COMMON INVESTMENT FUND.
"(6) THE ENTIRE INTEREST OF AN INDIVIDUAL FOR WHOSE BENEFIT THE
TRUST IS MAINTAINED WILL BE DISTRIBUTED TO HIM NOT LATER THAN THE
CLOSE OF HIS TAXABLE YEAR IN WHICH HE ATTAINS AGE 70 1/2, OR WILL
BE DISTRIBUTED, COMMENCING BEFORE THE CLOSE OF SUCH TAXABLE YEAR,
IN ACCORDANCE WITH REGULATIONS PRESCRIBED BY THE SECRETARY OR HIS
DELEGATE, OVER--,
"(A) THE LIFE OF SUCH INDIVIDUAL OR THE LIVES OF SUCH
INDIVIDUAL AND HIS SPOUSE.
"(B) A PERIOD NOT EXTENDING BEYOND THE LIFE EXPECTANCY OF SUCH
INDIVIDUAL OR THE LIFE EXPECTANCY OF SUCH INDIVIDUAL AND HIS
SPOUSE.
"(7) IF AN INDIVIDUAL FOR WHOSE BENEFIT THE TRUST IS MAINTAINED
DIES BEFORE HIS ENTIRE INTEREST HAS BEEN DISTRIBUTED TO HIM, OF IF
DISTRIBUTION HAS BEEN COMMENCED AS PROVIDED IN PARAGRAPH (6) TO
HIS SURVIVING SPOUSE AND SUCH SURVIVING SPOUSE DIES BEFORE THE
ENTIRE INTEREST HAS BEEN DISTRIBUTED TO SUCH SPOUSE, THE ENTIRE
INTEREST (OR THE REMAINING PART OF SUCH INTEREST IF DISTRIBUTION
THEREOF HAS COMMENCED) WILL, WITHIN 5 YEARS AFTER HIS DEATH (OR
THE DEATH OF THE SURVIVING SPOUSE), BE DISTRIBUTED, OR APPLIED TO
THE PURCHASE OF AN IMMEDIATE ANNUITY FOR HIS BENEFICIARY OR
BENEFICIARIES (OR THE BENEFICIARY OR BENEFICIARIES OF HIS
SURVIVING SPOUSE) WHICH WILL BE PAYABLE FOR THE LIFE OF SUCH
BENEFICIARY OR BENEFICIARIES (OR FOR A TERM CERTAIN NOT EXTENDING
BEYOND THE LIFE EXPECTANCY OF SUCH BENEFICIARY OR BENEFICIARIES)
AND WHICH ANNUITY WILL BE IMMEDIATELY DISTRIBUTED TO SUCH
BENEFICIARY OR BENEFICIARIES. THE PRECEDING SENTENCE DOES NOT
APPLY IF DISTRIBUTIONS OVER A TERM CERTAIN COMMENCED BEFORE THE
DEATH OF THE INDIVIDUAL FOR WHOSE BENEFIT THE TRUST WAS MAINTAINED
AND THE TERM CERTAIN IS FOR A PERIOD PERMITTED UNDER PARAGRAPH
(6).
"(B) INDIVIDUAL RETIREMENT ANNUITY.--FOR PURPOSES OF THIS SECTION,
THE TERM 'INDIVIDUAL RETIREMENT ANNUITY' MEANS AN ANNUITY CONTRACT, OR
AN ENDOWMENT CONTRACT (AS DETERMINED UNDER REGULATIONS PRESCRIBED BY THE
SECRETARY OR HIS DELEGATE), ISSUED BY AN INSURANCE COMPANY WHICH MEETS
THE FOLLOWING REQUIREMENTS:
"(1) THE CONTRACT IS NOT TRANSFERABLE BY THE OWNER.
"(2) THE ANNUAL PREMIUM UNDER THE CONTRACT WILL NOT EXCEED
$1,500 AND ANY REFUND OF PREMIUMS WILL BE APPLIED BEFORE THE CLOSE
OF THE CALENDAR YEAR FOLLOWING THE YEAR OF THE REFUND TOWARD THE
PAYMENT OF FUTURE PREMIUMS OR THE PURCHASE OF ADDITIONAL BENEFITS.
"(3) THE ENTIRE INTEREST OF THE OWNER WILL BE DISTRIBUTED TO
HIM NOT LATER THAN THE CLOSE OF HIS TAXABLE YEAR IN WHICH HE
ATTAINS AGE 70 1/2, OR WILL BE DISTRIBUTED, IN ACCORDANCE WITH
REGULATIONS PRESCRIBED BY THE SECRETARY OR HIS DELEGATE, OVER--
"(A) THE LIFE OF SUCH OWNER OR THE LIVES OF SUCH OWNER AND HIS
SPOUSE, OR
"(B) A PERIOD NOT EXTENDING BEYOND THE LIFE EXPECTANCY OF SUCH
OWNER OR THE LIFE EXPECTANCY OF SUCH OWNER AND HIS SPOUSE.
"(4) IF THE OWNER DIES BEFORE HIS ENTIRE INTEREST HAS BEEN
DISTRIBUTED TO HIM, OR IF DISTRIBUTION HAS BEEN COMMENCED AS
PROVIDED IN PARAGRAPH (3) TO HIS SURVIVING SPOUSE AND SUCH
SURVIVING SPOUSE DIES BEFORE THE ENTIRE INTEREST HAS BEEN
DISTRIBUTED TO SUCH SPOUSE, THE ENTIRE INTEREST (OR THE REMAINING
PART OF SUCH INTEREST IF DISTRIBUTION THEREOF HAS COMMENCED) WILL,
WITHIN 5 YEARS AFTER HIS DEATH (OR THE DEATH OF THE SURVIVING
SPOUSE), BE DISTRIBUTED, OR APPLIED TO THE PURCHASE OF AN
IMMEDIATE ANNUITY FOR HIS BENEFICIARY OR BENEFICIARIES (OR THE
BENEFICIARY OR BENEFICIARIES OF HIS SURVIVING SPOUSE) WHICH WILL
BE PAYABLE FOR THE LIFE OF SUCH BENEFICIARY OR BENEFICIARIES (OR
FOR A TERM CERTAIN NOT EXTENDING BEYOND THE LIFE EXPECTANCY OF
SUCH BENEFICIARY OR BENEFICIARIES) AND WHICH ANNUITY WILL BE
IMMEDIATELY DISTRIBUTED TO SUCH BENEFICIARY OR BENEFICIARIES. THE
PRECEDING SENTENCE SHALL HAVE NO APPLICATION IF DISTRIBUTIONS OVER
A TERM CERTAIN COMMENCED BEFORE THE DEATH OF THE OWNER AND THE
TERM CERTAIN IS FOR A PERIOD PERMITTED UNDER PARAGRAPH (3).
"(5) THE ENTIRE INTEREST OF THE OWNER IS NONFORFEITABLE.
SUCH TERM DOES NOT INCLUDE SUCH AN ANNUITY CONTRACT FOR ANY TAXABLE YEAR
OF THE OWNER IN WHICH IT IS DISQUALIFIED ON THE APPLICATION OF
SUBSECTION (E) OR FOR ANY SUBSEQUENT TAXABLE YEAR. FOR PURPOSES OF THIS
SUBSECTION, NO CONTRACT SHALL BE TREATED AS AN ENDOWMENT CONTRACT IF IT
MATURES LATER THAN THE TAXABLE YEAR IN WHICH THE INDIVIDUAL IN WHOSE
NAME SUCH CONTRACT IS PURCHASED ATTAINS AGE 70 1/2; IF IT IS NOT FOR
THE EXCLUSIVE BENEFIT OF THE INDIVIDUAL IN WHOSE NAME IT IS PURCHASED OR
HIS BENEFICIARIES; OR IF THE AGGREGATE ANNUAL PREMIUMS UNDER ALL SUCH
CONTRACTS PURCHASED IN THE NAME OF SUCH INDIVIDUAL FOR ANY TAXABLE YEAR
EXCEED $1,500.
"(C) ACCOUNTS ESTABLISHED BY EMPLOYERS AND CERTAIN ASSOCIATIONS OF
EMPLOYEES.--A TRUST CREATED OR ORGANIZED IN THE UNITED STATES BY AN
EMPLOYER FOR THE EXCLUSIVE BENEFIT OF HIS EMPLOYEES OR THEIR
BENEFICIARIES, OR BY AN ASSOCIATION OF EMPLOYEES (WHICH MAY INCLUDE
EMPLOYEES WITHIN THE MEANING OF SECTION 401(C) (1)) //26 USC 401.// FOR
THE EXCLUSIVE BENEFIT OF ITS MEMBERS OR THEIR BENEFICIARIES, SHALL BE
TREATED AS AN INDIVIDUAL RETIREMENT ACCOUNT (DESCRIBED IN SUBSECTION
(A)), BUT ONLY IF THE WRITTEN GOVERNING INSTRUMENT CREATING THE TRUST
MEETS THE FOLLOWING REQUIREMENTS:
"(1) THE TRUST SATISFIES THE REQUIREMENTS OF PARAGRAPHS (1)
THROUGH (7) OF SUBSECTION (A).
"(2) THERE IS A SEPARATE ACCOUNTING FOR THE INTEREST OF EACH
EMPLOYEE OR MEMBER.
THE ASSETS OF THE TRUST MAY BE HELD IN A COMMON FUND FOR THE ACCOUNT OF
ALL INDIVIDUALS WHO HAVE AN INTEREST IN THE TRUST.
"(D) TAX TREATMENT OF DISTRIBUTIONS.--,
"(1) IN GENERAL.--EXCEPT AS OTHERWISE PROVIDED IN THIS
SUBSECTION, ANY AMOUNT PAID OR DISTRIBUTED OUT OF AN INDIVIDUAL
RETIREMENT ACCOUNT OR UNDER AN INDIVIDUAL RETIREMENT ANNUITY SHALL
BE INCLUDED IN GROSS INCOME BY THE PAYEE OR DISTRIBUTEE, AS THE
CASE MAY BE, FOR THE TAXABLE YEAR IN WHICH THE PAYMENT OR
DISTRIBUTION IS RECEIVED. THE BASIS OF ANY PERSON IN SUCH AN
ACCOUNT OR ANNUITY IS ZERO.
"(2) DISTRIBUTIONS OF ANNUITY CONTRACTS.--PARAGRAPH (1) DOES
NOT APPLY TO ANY ANNUITY CONTRACT WHICH MEETS THE REQUIREMENTS OF
PARAGRAPHS (1), (3), (4), AND (5) OF SUBSECTION (B) AND WHICH IS
DISTRIBUTED FROM AN INDIVIDUAL RETIREMENT ACCOUNT. SECTION 72
//26 USC 72.// APPLIES TO ANY SUCH ANNUITY CONTRACT, AND FOR
PURPOSES OF SECTION 72 THE INVESTMENT IN SUCH CONTRACT IS ZERO.
"(3) ROLLOVER CONTRIBUTION.--AN AMOUNT IS DESCRIBED IN THIS
PARAGRAPH AS A ROLLOVER CONTRIBUTION IF IT MEETS THE REQUIREMENTS
OF SUBPARAGRAPHS (A) AND (B).
"(A) IN GENERAL.--PARAGRAPH (1) DOES NOT APPLY TO ANY AMOUNT
PAID OR DISTRIBUTED OUT OF AN INDIVIDUAL RETIREMENT ACCOUNT OR
INDIVIDUAL RETIREMENT ANNUITY TO THE INDIVIDUAL FOR WHOSE BENEFIT
THE ACCOUNT OR ANNUITY IS MAINTAINED IF--,
"(I) THE ENTIRE AMOUNT RECEIVED (INCLUDING MONEY AND ANY OTHER
PROPERTY) IS PAID INTO AN INDIVIDUAL RETIREMENT ACCOUNT OR
INDIVIDUAL RETIREMENT ANNUITY (OTHER THAN AN ENDOWMENT CONTRACT)
OR RETIREMENT BOND FOR THE BENEFIT OF SUCH INDIVIDUAL NOT LATER
THAN THE 60TH DAY AFTER THE DAY ON WHICH HE RECEIVES THE PAYMENT
OR DISTRIBUTION; OR
"(II) THE ENTIREMENT RECEIVED (INCLUDING MONEY AND ANY OTHER
PROPERTY) REPRESENTS THE ENTIRE AMOUNT IN THE ACCOUNT OR THE
ENTIRE VALUE OF THE ANNUITY AND NO AMOUNT IN THE ACCOUNT AND NO
PART OF THE VALUE OF THE ANNUITY IS ATTRIBUTABLE TO ANY SOURCE
OTHER THAN ROLLOVER CONTRIBUTION FROM AN EMPLOYEES' TRUST
DESCRIBED IN SECTION 401(A) //26 USC 401.// WHICH IS EXEMPT FROM
TAX UNDER SECTION 501(A) (OTHER THAN A TRUST FORMING PART OF A
PLAN UNDER WHICH THE INDIVIDUAL WAS AN EMPLOYEE WITHIN THE MEANING
OF SECTION 401(C)(1) AT THE TIME CONTRIBUTIONS WERE MADE ON HIS
BEHALF UNDER THE PLAN), OR AN ANNUITY PLAN DESCRIBED IN SECTION
403(A) (OTHER THAN A PLAN UNDER WHICH THE INDIVIDUAL WAS AN
EMPLOYEE WITHIN THE MEANING OF SECTION 401(C)(1) AT THE TIME
CONTRIBUTIONS WERE MADE ON HIS BEHALF UNDER THE PLAN) AND ANY
EARNINGS ON SUCH SUMS AND THE ENTIRE AMOUNT THEREOF IS PAID INTO
ANOTHER SUCH TRUST (FOR THE BENEFIT OF SUCH INDIVIDUAL) OR ANNUITY
PLAN NOT LATER THAN THE 60TH DAY ON WHICH HE RECEIVES THE PAYMENT
OR DISTRIBUTION.
"(B) LIMITATION.--THIS PARAGRAPH DOES NOT APPLY TO ANY AMOUNT
DESCRIBED IN SUBPARAGRAPH (A) (I) RECEIVED BY AN INDIVIDUAL FROM
AN INDIVIDUAL RETIREMENT ACCOUNT OR INDIVIDUAL RETIREMENT ANNUITY
IF AT ANY TIME DURING THE 3-YEAR PERIOD ENDING ON THE DAY OF SUCH
RECEIPT SUCH INDIVIDUAL RECEIVED ANY OTHER AMOUNT DESCRIBED IN
THAT SUBPARAGRAPH FROM AN INDIVIDUAL RETIREMENT ACCOUNT,
INDIVIDUAL RETIREMENT ANNUITY, OR A RETIREMENT BOND WHICH WAS NOT
INCLUDIBLE IN HIS GROSS INCOME BECAUSE OF THE APPLICATION OF THIS
PARAGRAPH.
"(4) EXCESS CONTRIBUTIONS RETURNED BEFORE DUE DATE OF
RETURN.--PARAGRAPH (1) DOES NOT APPLY TO THE DISTRIBUTION OF ANY
CONTRIBUTION PAID DURING A TAXABLE YEAR TO AN INDIVIDUAL
RETIREMENT ACCOUNT OR FOR AN INDIVIDUAL RETIREMENT ANNUITY TO THE
EXTENT THAT SUCH CONTRIBUTION EXCEEDS THE AMOUNT ALLOWABLE AS A
DEDUCTION UNDER SECTION 219 //ANTE, P. 958.// IF--,
"(A) SUCH DISTRIBUTION IS RECEIVED ON OR BEFORE THE DAY
PRESCRIBED BY LAW (INCLUDING EXTENSIONS OF TIME) FOR FILING SUCH
INDIVIDUAL'S RETURN FOR SUCH TAXABLE YEAR,
"(B) NO DEDUCTION IS ALLOWED UNDER SECTION 219 WITH RESPECT TO
SUCH EXCESS CONTRIBUTION, AND
"(C) SUCH DISTRIBUTION IS ACCOMPANIED BY THE AMOUNT OF NET
INCOME ATTRIBUTABLE TO SUCH EXCESS CONTRIBUTION. ANY NET INCOME
DESCRIBED IN SUBPARAGRAPH (C) SHALL BE INCLUDED IN THE GROSS
INCOME OF THE INDIVIDUAL FOR THE TAXABLE YEAR IN WHICH RECEIVED.
"(5) TRANSFER OF ACCOUNT INCIDENT TO DIVORCE.--THE TRANSFER OF
AN INDIVIDUAL'S INTEREST IN AN INDIVIDUAL RETIREMENT ACCOUNT,
INDIVIDUAL RETIREMENT ANNUITY, OR RETIREMENT BOND TO HIS FORMER
SPOUSE UNDER A DIVORCE DECREE OR UNDER A WRITTEN INSTRUMENT
INCIDENT TO SUCH DIVORCE IS NOT TO BE CONSIDERED A TAXABLE
TRANSFER MADE BY SUCH INDIVIDUAL NOTWITHSTANDING ANY OTHER
PROVISION OF THIS SUBTITLE, AND SUCH INTEREST AT THE TIME OF THE
TRANSFER IS TO BE TREATED AS AN INDIVIDUAL RETIREMENT ACCOUNT OF
SUCH SPOUSE, AND NOT OF SUCH INDIVIDUAL. THEREAFTER SUCH ACCOUNT,
ANNUITY, OR BOND FOR PURPOSES OF THIS SUBTITLE IS TO BE TREATED AS
MAINTAINED FOR THE BENEFIT OF SUCH SPOUSE.
"(E) TAX TREATMENT OF ACCOUNTS AND ANNUITIES.--,
"(1) EXEMPTION FROM TAX.--ANY INDIVIDUAL RETIREMENT ACCOUNT IS
EXEMPT FROM TAXATION UNDER THIS SUBTITLE UNLESS SUCH ACCOUNT HAS
CEASED TO BE AN INDIVIDUAL RETIREMENT ACCOUNT BY REASON OF
PARAGRAPH (2) OR (3). NOTWITHSTANDING THE PRECEDING SENTENCE, ANY
SUCH ACCOUNT IS SUBJECT TO THE TAXES IMPOSED BY SECTION 511 //26
USC 511.// (RELATING TO IMPOSITION OF TAX ON UNRELATED BUSINESS
INCOME OF CHARITABLE, ETC. ORGANIZATIONS).
"(2) LOSS OF EXEMPTION OF ACCOUNT WHERE EMPLOYEE ENGAGES IN
PROHIBITED TRANSACTION.--,
"(A) IN GENERAL.--IF, DURING ANY TAXABLE YEAR OF THE INDIVIDUAL
FOR WHOSE BENEFIT ANY INDIVIDUAL RETIREMENT ACCOUNT IS
ESTABLISHED, THAT INDIVIDUAL OR HIS BENEFICIARY ENGAGES IN ANY
TRANSACTION PROHIBITED BY SECTION 4975 //POST, P. 971.// WITH
RESPECT TO SUCH ACCOUNT, SUCH ACCOUNT CEASES TO BE AN INDIVIDUAL
RETIREMENT ACCOUNT AS OF THE FIRT DAY OF SUCH TAXABLE YEAR. FOR
PURPOSES OF THIS PARAGRAPH--,
"(I) THE INDIVIDUAL FOR WHOSE BENEFIT ANY ACCOUNT WAS
ESTABLISHED IS TREATED AS THE CREATOR OF SUCH ACCOUNT, AND
"(II) THE SEPARATE ACCOUNT FOR ANY INDIVIDUAL WITHIN AN
INDIVIDUAL RETIREMENT ACCOUNT MAINTAINED BY AN EMPLOYER OR
ASSOCIATION OF EMPLOYEES IS TREATED AS A SEPARATE INDIVIDUAL
RETIREMENT ACCOUNT.
"(B) ACCOUNT TREATED AS DISTRIBUTING ALL ITS ASSETS.--, IN ANY
CASE IN WHICH ANY ACCOUNT CEASES TO BE AN INDIVIDUAL RETIREMENT
ACCOUNT BY REASON OF SUBPARAGRAPH (A) AS OF THE FIRST DAY OF ANY
TAXABLE YEAR, PARAGRAPH (1) OF SUBSECTION (D) APPLIES AS IF THERE
WERE A DISTRIBUTION ON SUCH FIRST DAY IN AN AMOUNT EQUAL TO THE
FAIR MARKET VALUE (ON SUCH FIRST DAY) OF ALL ASSETS IN THE ACCOUNT
(ON SUCH FIRST DAY).
"(3) EFFECT OF BORROWING ON ANNUITY CONTRACT.--IF DURING ANY
TAXABLE YEAR THE OWNER OF AN INDIVIDUAL RETIREMENT ANNUITY BORROWS
ANY MONEY UNDER OR BY USE OF SUCH CONTRACT, THE CONTRACT CEASES TO
BE AN INDIVIDUAL RETIREMENT ANNUITY AS OF THE FIRST DAY OF SUCH
TAXABLE YEAR. SUCH OWNER SHALL INCLUDE IN GROSS INCOME FOR SUCH
YEAR AN AMOUNT EQUAL TO THE FAIR MARKET VALUE OF SUCH CONTRACTAS
OF SUCH FIRST DAY.
"(4) EFFECT OF PLEDGING ACCOUNT AS SECURITY.--IF, DURING ANY
TAXABLE YEAR OF THE INDIVIDUAL FOR WHOSE BENEFIT AN INDIVIDUAL
RETIREMENT ACCOUNT IS ESTABLISHED, THAT INDIVIDUAL USES THE
ACCOUNT OR ANY PORTION THEREOF AS SECURITY FOR A LOAN, THE PORTION
SO USED IS TREATED AS DISTRIBUTED TO THAT INDIVIDUAL.
"(5) PURCHASE OF ENDOWMENT CONTRACT BY INDIVIDUAL RETIREMENT
ACCOUNT.--IF THE ASSETS OF AN INDIVIDUAL RETIREMENT ACCOUNT OR ANY
PART OF SUCH ASSETS ARE USED TO PRUCHASE AN ENDOWMENT CONTRACT FOR
THE BENEFIT OF THE INDIVIDUAL FOR WHOSE BENEFIT THE ACCOUNT IS
ESTABLISHED--,
"(A) TO THE EXTENT THAT AMOUNT OF THE ASSETS INVOLVED IN THE
PURCHASE ARE NOT ATTRIBUTABLE TO THE PURCHASE OF LIFE INSURANCE,
THE PURCHASE IS TREATED AS A ROLLOVER CONTRIBUTION DESCRIBED IN
SUBSECTION (D) (3), AND
"(B) TO THE EXTENT THAT THE AMOUNT OF THE ASSETS INVOLVED IN
THE PURCHASE ARE ATTRIBUTABLE TO THE PURCHASE OF LIFE, HEALTH,
ACCIDENT, OR OTHER INSURANCE, SUCH AMOUNTS ARE TREATED AS
DISTRIBUTED TO THAT INDIVIDUAL (BUT THE PROVISIONS OF SUBSECTION
(F) DO NOT APPLY).
"(6) COMMINGLING INDIVIDUAL RETIREMENT ACCOUNT AMOUNTS IN
CERTAIN COMMON TRUST FUNDS AND COMMON INVESTMENT FUNDS.--ANY
COMMON TRUST FUND OR COMMON INVESTMENT FUND OF INDIVIDUAL
RETIREMENT ACCOUNT ASSETS WHICH IS EXEMPT FROM TAXATION UNDER THIS
SUBTITLE DOES NOT CEASE TO BE EXEMPT ON ACCOUNT OF THE
PARTICIPATION OR INCLUSION OF ASSETS OF A TRUST EXEMPT FROM
TAXATION UNDER SECTION 501(A) WHICH IS DESCRIBED IN SECTION 401(
A). //26 USC 501, 401.//
"(F) ADDITIONAL TAX ON CERTAIN AMOUNTS INCLUDED IN GROSS INCOME
BEFORE AGE 59 1/2--,
"(1) EARLY DISTRIBUTIONSFROM AN INDIVIDUAL RETIREMENT ACCOUNT,
ETC.--IF A DISTRIBUTION FROM AN INDIVIDUAL RETIREMENT ACCOUNT OR
UNDER AN INDIVIDUAL RETIREMENT ANNUITY TO THE INDIVIDUAL FOR WHOSE
BENEFIT SUCH ACCOUNT OR ANNUITY WAS ESTABLISHED IS MADE BEFORE
SUCH INDIVIDUAL ATTAINS AGE 59 1/2, HIS TAX UNDER THIS CHAPTER FOR
THE TAXABLE YEAR IN WHICH SUCH DISTRIBRUTION IS RECEIVED SHALL BE
INCREASED BY AN AMOUNT EQUAL TO 10 PERCENT OF THE AMOUNT OF THE
DISTRIBUTION WHICH IS INCLUDIBLE IN HIS GROSS INCOME FOR SUCH
TAXABLE YEAR.
"(2) DISQUALIFICATION CASES.--IF AN AMOUNT IS UNCLUDIBLE IN
GROSS INCOME FOR A TAXABLE YEAR UNDER SUBSECTION (E) AND THE
TAXPAYER HAS NOT ATTAINED AGE 59 1/2 BEFORE THE BEGINNING OF SUCH
TAXABLE YEAR, HIS TAX UNDER THIS CHAPTER FOR SUCH TAXABLE YEAR
SHALL BE INCREASED BY AN AMOUNT EQUAL TO 10 PERCENT OF SUCH AMOUNT
SO REQUIRED TO BE INCLUDED IN HIS GROSS INCOME.
"(3) DISABILITY CASES.--PARAGRAPHS (1) AND (2) DO NOT APPLY IF
THE AMOUNT PAID OR DISTRIBUTED, OR THE DISQUALIFICATION OF THE
ACCOUNT OR ANNUITY UNDER SUBSECTION (E), IS ATTRIBUTABLE TO THE
TAXPAYER BECOMING DISABLED WITHIN THE MEANING OF SECTION 72(M)
(7).
"(G) COMMUNITY PROPERTY LAWS.--THIS SECTION SHALL BE APPLIED WITHOUT
REGARD TO ANY COMMUNITY PROPERTY LAWS.
"(H) CUSTODIAL ACCOUNTS.--FOR PURPOSES OF THIS SECTION, A CUSTODIAL
ACCOUNT SHALL BE TREATED AS A TRUST IF THE ASSETS OF SUCH ACCOUNT ARE
HELD BY A BANK (AS DEFINED IN SECTION 401(D)(1)) OR ANOTHER PERSON WHO
DEMONSTRATES, TO THE SATISFACTION OF THE SECRETARY OR HIS DELEGATE, THAT
THE MANNER IN WHICH HE WILL ADMINISTER THE ACCOUNT WILL BE CONSISTENT
WITH THE REQUIREMENTS OF THIS SECTION, AND IF THE CUSTODIAL ACCOUNT
WOULD, EXCEPT FOR THE FACT THAT IT IS NOT A TRUST, CONSTITUTE AN
INDIVIDUAL RETIREMENT ACCOUNT DESCRIBED IN SUBSECTION (A). FOR PURPOSES
OF THIS TITLE,, IN THE CASE OF A CUSTODIAL ACCOUNT TREATED AS A TRUST BY
REASON OF THE PRECEDING SENTENCE, THE CUSTODIAN OF SUCH ACCOUNT SHALL BE
TREATED AS THE TRUSTEE THEREOF.
"(I) REPORTS.--THE TRUSTEE OF AN INDIVIDUAL RETIREMENT ACCOUNT AND
THE ISSUER OF AN ENDOWMENT CONTRACT DESCRIBED IN SUBSECTION (B) OR AN
INDIVIDUAL RETIREMENT ANNUITY SHALL MAKE SUCH REPORTS REGARDING SUCH
ACCOUNT, CONTRACT, OR ANNUITY TO THE SECRETARY OR HIS DELEGATE AND TO
THE INDIVIDUALS FOR WHOM THE ACCOUNT, CONTRACT, OR ANNUITY IS, OR IS TO
BE, MAINTAINED WITH RESPECT TO CONTRIBUTIONS, DISTRIBUTIONS, AND SUCH
OTHER MATTERS AS THE SECRETARY OR HIS DELEGATE MAY REQUIRE UNDER
REGULATIONS. THE REPORTS REQUIRED BY THIS SUBSECTION SHALL BE FILED AT
SUCH TIME AND SUCH MANNER AND FURNISHED TO SUCH INDIVIDUALS AT SUCH TIME
AND IN SUCH MANNER AS MAY BE REQUIRED BY THOSE REGULATIONS.
"(J) CROSS REFERENCES.--,
"(1) FOR TAX ON EXCESS CONTRIBUTIONS IN INDIVIDUAL RETIREMENT
ACCOUNTS OR ANNUITIES, SEE SCTION 4973.
"(2) FOR TAX ON CERTAIN ACCUMULATIONS IN INDIVIDUAL RETIREMENT
ACCOUNTS OR ANNUITIES, SEE SECTION 4974."
(C) RETIREMENT BONDS.--SUBPART A OF PART I OF SUBCHAPTER D OF CHAPTER
I (RELATING TO RETIREMENT PLANS) IS AMENDED BY INSERTING AFTER SECTION
408 //ANTE, P. 959.// THE FOLLOWING NEW SECTION:
"(A) RETIREMENT BOND.--FOR PURPOSES OF THIS SECTION AND SECTION 219(
A), //ANTE, P. 958.// THE TERM 'RETIREMENT BOND' MEANS A BOND ISSUED
UNDER THE SECOND LIBERTY BOND ACT, AS AMENDED, //40 STAT. 288, 31 USC
774.// WHICH BY ITS TERMS, OR BY REGULATIONS PRESCRIBED BY THE SECRETARY
OR HIS DELEGATE UNDER SUCH ACT--,
"(1) PROVIDES FOR PAYMENT OF INTEREST, OR INVESTMENT YIELD,
ONLY ON REDEMPTION;
"(2) PROVIDES THAT NO INTEREST, OR INVESTMENT YIELD, IS PAYABLE
IF THE BOND IS REDEEMED WITHIN 12 MONTHS AFTER THE DATE OF ITS
ISSUANCE;
"(3) PROVIDES THAT IT CEASES TO BEAR INTEREST, OR PROVIDE
INVESTMENT YIELD ON THE EARLIER OF--,
"(A) THE DATE ON WHICH THE INDIVIDUAL IN WHOSE NAME IT IS
PURCHASED (HEREINAFTER IN THIS SECTION REFERRED TO AS THE
'REGISTERED OWNER') ATTAINS AGE 70 1/2; OR
"(B) 5 YEARS AFTER THE DATE ON WHICH THE REGISTERED OWNER DIES,
BUT NOT LATER THAN THE DATE ON WHICH HE WOULD HAVE ATTAINED THE
AGE 70 1/2 HAD HE LIVED;
"(4) PROVIDES THAT, EXCEPT IN THE CASE OF A ROLLOVER
CONTRIBUTION DESCRIBED IN SUBSECTION (B) (3) (C) OR IN SECTION
402(A) (5) //POST, P. 991.// 403(A) (4), //POST, P. 969.// OR
408(D) (3) ANTE. P. 959.// THE REGISTERED OWNER MAY NOT CONTRIBUTE
FOR THE PURCHASE OF SUCH BONDS IN EXCESS OF $1,500 IN ANY TAXABLE
YEAR; AND
"(5) IS NOT TRANSFERABLE.
"(B) INCOME TAX TREATMENT OF BONDS.--,
"(1) IN GENERAL.--EXCEPT AS OTHERWISE PROVIDED IN THIS
SUBSECTION, ON THE REDEMPTION OF A RETIREMENT BOND THE ENTIRE
PROCEEDS SHALL BE INCLUDED IN THE GROSS INCOME OF THE TAXPAYER
ENTITLED TO THE PROCEEDS ON REDEMPTION. IF THE REGISTERED OWNER
HAS NOT TENDERED IT FOR REDEMPTION BEFORE THE CLOSE OF THE TAXABLE
YEAR IN WHICH HE ATTAINS AGE 70 1/2, SUCH INDIVIDUAL SHALL INCLUDE
IN HIS GROSS INCOME FOR SUCH TAXABLE YEAR THE AMOUNT REDEEMED AT
AGE 70 1/2. THE PROVISIONS OF SECTION 72 //ANTE, P. 958.//
(RELATING TO ANNUITIES) AND SECTION 1232 (RELATING TO BONDS AND
OTHER EVIDENCES OF INDEBTEDNESS) SHALL NOT APPLY TO A RETIREMENT
BOND.
"(2) BASIS.--THE BASIS OF A RETIREMENT BOND IS ZERO.
"(3) EXCEPTIONS.--,
"(A) REDEMPTION WITHIN 12 MONTHS.--IF A RETIREMENT BOND IS
REDEEMED WITHIN 12 MONTHS AFTER THE DATE OF ITS ISSUANCE, THE
PROCEEDS ARE EXCLUDED FROM GROSS INCOME IF NO DEDUCTION IS ALLOWED
UNDER SECTION 219 //ANTE, P. 958.// ON ACCOUNT OF THE PURCHASE OF
SUCH BOND.
"(B) REDEMPTION AFTER AGE 70 1/2.--IF A RETIREMENT BOND IS
REDEEMED AFTER THE CLOSE OF THE TAXABLE YEAR IN WHICH THE
REGISTERED OWNER ATTAINS AGE 70 1/2, THE PROCEEDS FROM THE
REDEMPTION OF THE BOND ARE EXCLUDED FROM THE GROSS INCOME OF THE
REGISTERED OWNER TO THE EXTENT THAT SUCH PROCEEDS WERE INCLUDIBLE
IN HIS GROSS INCOME FOR SUCH TAXABLE YEAR.
"(C) ROLLOVER INTO AN INDIVIDUAL RETIREMENT ACCOUNT OR ANNUITY
OR A QUALIFIED PLAN.--IF A RETIREMENT BOND IS REDEEMED AT ANY TIME
BEFORE THE CLOSE OF THE TAXABLE YEAR IN WHICH THE REGISTERED OWNER
ATTAINS AGE 70 1/2, AND THE REGISTERED OWNER TRANSFERS THE ENTIRE
AMOUNT OF THE PROCEEDS FROM THE REDEMPTION OF THE BOND TO AN
INDIVIDUAL RETIREMENT ACCOUNT DESCRIBED IN SECTION 408(A) //ANTE,
P. 959.// OR TO AN INDIVIDUAL RETIREMENT ANNUITY DESCRIBED IN
SECTION 408(B) (OTHER THAN AN ENDOWMENT CONTRACT) WHICH IS
MAINTAINED FOR THE BENEFIT OF THE REGISTERED OWNER OF THE BOND, OR
TO AN EMPLOYEES' TRUST DESCRIBED IN SECTION 401(A) //26 USC 401.//
WHICH IS EXEMPT FROM TAX UNDER SECTION 501(A), OR AN ANNUITY PLAN
DESCRIBED IN SECTION 403(A) FOR THE BENEFIT OF THE REGISTERED
OWNER ON OR BEFORE THE 60TH DAY AFTER THE DAY ON WHICH HE RECEIVED
THE PROCEEDS OF SUCH REDEMPTION. THEN THE PROCEEDS SHALL BE
EXCLUDED FROM GROSS INCOME AND THE TRANSFER SHALL BE TREATED AS A
ROLLOVER CONTRIBUTION DESCRIBED IN SECTION 403(D)(3). //26 USC
403.// THIS SUBPARAGRAPH DOES NOT APPLY IN THE CASE OF A TRANSFER
TO SUCH AN EMPLOYEES' TRUST OR SUCH AN ANNUITY PLAN UNLESS NO PART
OF THE VALUE OF SUCH PROCEEDS IS ATTRIBUTABLE TO ANY SOURCE OTHER
THAN A ROLLOVER CONTRIBUTION FROM SUCH AN EMPLOYEES' TRUST OR
ANNUITY PLAN (OTHER THAN AN ANNUITY PLAN OR TRUST FORMING PART OF
A PLAN UNDER WHICH THE INDIVIDUAL WAS AN EMPLOYEE WITHIN THE
MEANING OF SECTION 401(C) (1) AT THE TIME CONTRIBUTIONS WERE MADE
ON HIS BEHALF UNDER THE PLAN).
"(C) ADDITIONAL TAX ON CERTAIN REDEMPTIONS BEFORE AGE 59 1/2.--,
"(1) EARLY REDEMPTION OF BOND.--IF A RETIREMENT BOND IS
REDEEMED BY THE REGISTERED OWNER BEFORE HE ATTAINS AGE 59 1/2, HIS
TAX UNDER THIS CHAPTER FOR THE TAXABLE YEAR IN WHICH THE BOND IS
REDEEMED SHALL BE INCREASED BY AN AMOUNT EQUAL TO 10 PERCENT OF
THE AMOUNT OF THE PROCEEDS OF THE REDEMPTION INCLUDIBLE IN HIS
GROSS INCOME FOR THE TAXABLE YEAR.
"(2) DISABILITY CASES.--PARAGRAPH (1) DOES NOT APPLY FOR ANY
TAXABLE YEAR DURING WHICH THE RETIREMENT BOND IS REDEEMED IF, FOR
THAT TAXABLE YEAR, THE REGISTERED OWNER IS DISABLED WITHIN THE
MEANING OF SECTION 72(M). //26 USC 72.//
"(3) REDEMPTION WITHIN ONE YEAR.--PARAGRAPH (1) DOES NOT APPLY
IF THE REGISTERED OWNER TENDERS THE BOND FOR REDEMPTION WITHIN 12
MONTHS AFTER THE DATE OF ITS ISSUANCE.".
(D) EXCISE TAX ON EXCESS CONTRIBUTIONS.--CHAPTER 43 (RELATING TO
QUALIFIED PENSION, ETC., PLANS) IS AMENDED BY INSERTING AFTER SECTION
4972 THE FOLLOWING NEW SECTION: //ANTE, P. 955.//
RETIREMENT
ACCOUNTS, CERTAIN SECTION 403(B) CONTRACTS,
CERTAIN INDIVIDUAL RETIREMENT ANNUITIES, AND
CERTAIN RETIREMENT BONDS.
"(A) TAX IMPOSED.--IN THE CASE OF--,
"(1) AN INDIVIDUAL RETIREMENT ACCOUNT (WITHIN THE MEANING OF
SECTION 408(A)). //ANTE, P. 959.//
"(2) AN INDIVIDUAL RETIREMENT ANNUITY (WITHIN THE MEANING OF
SECTION 408(B)), A CUSTODIAL ACCOUNT TREATED AS AN ANNUITY
CONTRACT UNDER SECTION 403(B) (7) (A) //ANTE, P. 940.// (RELATING
TO CUSTODIAL ACCOUNTS FOR REGULATED INVESTMENT COMPANY STOCK), OR
"(3) A RETIREMENT BOND (WITHIN THE MEANING OF SECTION 409),
ESTABLISHED FOR THE BENEFIT OF ANY INDIVIDUAL, THERE IS IMPOSED
FOR EACH TAXABLE YEAR A TAX IN AN AMOUNT EQUAL TO 6 PERCENT OF THE
AMOUNT OF THE EXCESS CONTRIBUTIONS TO SUCH INDIVIDUAL'S ACCOUNTS,
ANNUITIES, OR BONDS (DETERMINED AS OF THE CLOSE OF THE TAXABLE
YEAR). THE AMOUNT OF SUCH TAX FOR ANY TAXABLE YEAR SHALL NOT
EXCEED 6 PERCENT OF THE VALUE OF THE ACCOUNT, ANNUITY, OR BOND
(DETERMINED AS OF THE CLOSE OF THE TAXABLE YEAR). IN THE CASE OF
AN ENDOWMENT CONTRACT DESCRIBED IN SECTION 408(B), THE TAX IMPOSED
BY THIS SECTION DOES NOT APPLY TO ANY AMOUNT ALLOCABLE TO LIFE,
HEALTH, ACCIDENT, OR OTHER INSURANCE UNDER SUCH CONTRACT. THE TAX
IMPOSED BY THIS SUBSECTION SHALL BE PAID BY SUCH INDIVIDUAL.
"(B) EXCESS CONTRIBUTIONS.--FOR PURPOSES OF THIS SECTION, IN THE CASE
OF INDIVIDUAL RETIREMENT ACCOUNTS, INDIVIDUAL RETIREMENT ANNUNITIES, OR
BONDS, THE TERM 'EXCESS CONTRIBUTIONS' MEANS THE SUM OF--,
"(1) THE EXCESS (IF ANY) OF--,
"(A) THE AMOUNT CONTRIBUTED FOR THE TAXABLE YEAR TO THE
ACCOUNTS OR FOR THE ANNUITIES OR BONDS (OTHER THAN A ROLLOVER
CONTRIBUTION DESCRIBED IN SECTION 402(A) (5), 403(A) (4), 408(D)
(3)), OR 409(B) (3) (C), OVER //POST, PP. 991, 969, ANTE, PP.
959, 964.//
"(B) THE AMOUNT ALLOWABLE AS A DEDUCTION UNDER SECTION 219 FOR
SUCH CONTRIBUTIONS, AND
"(2) THE AMOUNT DETERMINED UNDER THIS SUBSECTION FOR THE
PRECEDING TAXABLE YEAR, REDUCED BY THE EXCESS (IF ANY) OF THE
MAXIMUM AMOUNT ALLOWABLE AS A DEDUCTION UNDER SECTION 219 //ANTE,
P. 958.// FOR THE TAXABLE YEAR OVER THE AMOUNT CONTRIBUTED TO THE
ACCOUNTS OR FOR THE ANNUITIES OR BONDS FOR THE TAXABLE YEAR AND
REDUCED BY THE SUM OF THE DISTRIBUTIONS OUT OF THE ACCOUNT (FOR
ALL PRIOR TAXABLE YEARS) WHICH WERE INCLUDED IN THE GROSS INCOME
OF THE PAYEE UNDER SECTION 408(D) (1). FOR PURPOSES OF THIS
PARAGRAPH, ANY CONTRIBUTION WHICH IS DISTRIBUTED OUT OF THE
INDIVIDUAL RETIREMENT ACCOUNT, INDIVIDUAL RETIREMENT ANNUITY, OR
BOND IN A DISTRIBUTION TO WHICH SECTION 408(D) (4) APPLIES SHALL
BE TREATED AS AN AMOUNT NOT CONTRIBUTED.
"(C) SECTION 403(B) CONTRACTS.--FOR PURPOSES OF THIS SECTION, IN THE
CASE OF A CUSTODIAL ACCOUNT REFERREDTO IN SUBSECTION (A) (3), THE TERM
'EXCESS CONTRIBUTIONS' MEANS THE SUM OF--,
"(1) THE EXCESS (IF ANY) OF THE AMOUNT CONTRIBUTED FOR THE
TAXABLE YEAR TO SUCH ACCOUNT, OVER THE LESSER OF THE AMOUNT
EXCLUDABLE FROM GROSS INCOME UNDER SECTION 403(B) //26 USC 403.//
OR THE AMOUNT PERMITTED TO BE CONTRIBUTED UNDER THE LIMITATIONS
CONTAINED IN SECTION 415 //POST, P. 979.// (OR UNDER WHICHEVER
SUCH SECTION IS APPLICABLE, IF ONLY ONE IS APPLICABLE), AND
"(2) THE AMOUNT DETERMINED UNDER THIS SUBSECTION FOR THE
PRECEDING TAXABLE YEAR, REDUCED BY--,
"(A) THE EXCESS (IF ANY) OF THE LESSER OF (I) THE AMOUNT
EXCLUDABLE FROM GROSS INCOME UNDER SECTION 403(B) OR (II) THE
AMOUNT PERMITTED TO BE CONTRIBUTED UNDER THE LIMITATIONS CONTAINED
IN SECTION 415 OVER THE AMOUNT CONTRIBUTED TO THE ACCOUNT FOR THE
TAXABLE YEAR (OR UNDER WHICHEVER SUCH SECTION IS APPLICABLE, IF
ONLY ONE IS APPLICABLE), AND
"(B) THE SUM OF THE DISTRIBUTIONS OUT OF THE ACCOUNT (FOR ALL
PRIOR TAXABLE YEARS) WHICH ARE INCLUDED IN GROSS INCOME UNDER
SECTION 72(E)."
(E) EXCISE TAX ON EXCESSIVE ACCUMULATIONS.--CHAPTER 43 IS AMENDED BY
INSERTING AFTER SECTION 4973 THE FOLLOWING NEW SECTION: //ANTE, P.
966.//
INDIVIDUAL
RETIREMENT ACCOUNTS OR ANNUITIES.
"(A) IMPOSITION OF TAX.--IF, IN THE CASE OF AN INDIVIDUAL RETIREMENT
ACCOUNT OR INDIVIDUAL RETIREMENT ANNUITY, THE AMOUNT DISTRIBUTED DURING
THE TAXABLE YEAR OF THE PAYEE IS LESS THAN THE MINIMUM AMOUNT REQUIRED
TO BE DISTRIBUTED UNDER SECTION 408(A) (6) OR (7), OR 408(B) (3) OR (4)
//ANTE, P. 959.// DURING SUCH YEAR, THERE IS IMPOSED A TAX EQUAL TO 50
PERCENT OF THE AMOUNT BY WHICH THE MINIMUM AMOUNT REQUIRED TO BE
DISTRIBUTED DURING SUCH YEAR EXCEEDS THE AMOUNT ACTUALLY DISTRIBUTED
DURING THE YEAR. THE TAX IMPOSED BY THIS SECTION SHALL BE PAID BY SUCH
PAYEE.
"(B) REGULATIONS.--FOR PURPOSES OF THIS SECTION, THE MINIMUM AMOUNT
REQUIRED TO BE DISTRIBUTED DURING A TAXABLE YEAR UNDER SECTION 408(A)
(6) OR (7) OR 408(B) (3) OR (4) SHALL BE DETERMINED UNDER REGULATIONS
PRESCRIBED BY THE SECRETARY OR HIS DELEGATE.".
"(F) PENALTY FOR FAILURE TO PROVIDE REPORTS ON INDIVIDUAL RETIREMENT
ACCOUNTS.--SUBCHAPTER B OF CHAPTER 68 //ANTE, P. 948.// (RELATING TO
ASSESSABLE PENALTIES) IS AMENDED BY ADDING AT THE END THEREOF THE
FOLLOWING NEW SECTION:
RETIREMENT ACCOUNTS OR ANNUITIES.
"(4) THE PERSON REQUIRED BY SECTION 408(I) //ANTE, P. 959.// TO FILE
A REPORT REGARDING AN INDIVIDUAL RETIREMENT ACCOUNT OR INDIVIDUAL
ANNUITY AT THE TIME AND IN THE MANNER REQUIRED BY SECTION 408(I) SHALL
PAY A PENALTY OF $10 FOR EACH FAILURE UNLESS IT IS SHOWN THAT SUCH
FAILURE IS DUE TO REASONABLE CAUSE.
"(B) DEFICIENCY PROCEDURES NOT TO APPLY.--SUBCHAPTER B OF CHAPTER 63
//26 USC 6211.// (RELATING TO DEFICIENCY PROCEDURES FOR INCOME, ESTATE,
GIFT, AND CERTAIN EXCISE TAXES) DOES NOT APPLY TO THE ASSESSMENT OR
COLLECTION OF ANY PENALTY IMPOSED BY SUBSECTION (A).".
(G) CONFORMING AMENDMENTS.--,
(1) SECTION 37(C) (1) //26 USC 37.// (DEFINING RETIREMENT
INCOME) IS AMENDED--,
(A) BY STRIKING OUT "AND" AT THE END OF SUBPARAGRAPH (D),
(B) BY ADDING AT THE END OF SUBPARAGRAPH (E) THE FOLLOWING:
"RETIREMENT BONDS DESCRIBED IN SECTION 409, AND", AND
(C) BY ADDING AT THE END THEREOF THE FOLLOWING NEW
PARAGRAPH:
"(F) AN INDIVIDUAL RETIREMENT ACCOUNT DESCRIBED IN SECTION
408(A) OR AN INDIVIDUAL RETIREMENT ANNUITY DESCRIBED IN SECTION
408(B), OR",
(2) THE SECOND SENTENCE OF SECTION 46(A) (3) AND THE SECOND
SENTENCE OF SECTION 50A (A) (3), AS EACH IS AMENDED BY SECTIONS
2001 (G) (2) (B) AND 2005(C) (4) OF THIS ACT, ARE EACH AMENDED BY
INSERTING AFTER "OWNER-EMPLOYEES)," THE FOLLOWING: "SECTION 408
(E) (RELATING TO ADDITIONAL TAX ON INCOME FROM CERTAIN RETIREMENT
ACCOUNTS),".
(3) THE THIRD SENTENCE OF SECTION 901(A), AS AMENDED BY SECTION
2005(C) (5) OF THIS ACT, IS AMENDED BY INSERTING "AGAINST THE TAX
IMPOSED FOR THE TAXABLE YEAR BY SECTION 408(F) (RELATING TO
ADDITIONAL TAX ON INCOME FROM CERTAIN RETIREMENT ACCOUNTS),"
BEFORE "AGAINST THE TAX IMPOSED BY SECTION 531".
(4) SUBPARAGRAPH (A) OF SECTION 56(A) (2) AND PARAGRAPH (1) OF
SECTION 56(C) ARE EACH AMENDED BY STRIKING OUT "531" AND INSERTING
IN LIEU THEREOF "408 (F), 531,".
(5) SECTION 402(A) (RELATING TO TAXABILITY OF BENEFICIARY OF
EXEMPT TRUST), AS AMENDED BY SECTION 2005(C) (2) OF THIS ACT, IS
AMENDED BY INSERTING AFTER PARAGRAPH (5) THE FOLLOWING NEW
PARAGRAPH:
"(5) ROLLOVER AMOUNTS.--IN THE CASE OF AN EMPLOYEES' TRUST
DESCRIBED IN SECTION 401(A) WHICH IS EXEMPT FROM TAX UNDER SECTION
501(A), IF--,
"(A) THE BALANCE TO THE CREDIT OF AN EMPLOYEE IS PAID TO HIM ON
ONE OR MORE DISTRIBUTIONS WHICH CONSTITUTE A LUMP SUM DISTRIBUTION
WITHIN THE MEANING OF SUBSECTION (E) (4) (A) (DETERMINED WITHOUT
REFERENCES TO SUBSECTION (E) (4) (B),
"(B) (I) THE EMPLOYEE TRANSFERS ALL THE PROPERTY HE RECEIVES IN
SUCH DISTRIBUTION TO AN INDIVIDUAL RETIREMENT ACCOUNT DESCRIBED IN
SECTION 408(A), AN INDIVIDUAL RETIREMENT ANNUITY DESCRIBED IN
SECTION 408(B) (OTHER THAN AN ENDOWMENT CONTRACT), OR A RETIREMENT
BOND DESCRIBED IN SECTION 409, ON OR BEFORE THE 60TH DAY AFTER THE
DAY ON WHICH HE RECEIVED SUCH PROPERTY, TO THE EXTENT THE FAIR
MARKET VALUE OF SUCH PROPERTY EXCEEDS THE AMOUNT REFERRED TO IN
SUBSECTION (E) (4) (D) (I), OR
"(II) THE EMPLOYEE TRANSFERS ALL THE PROPERTY HE RECEIVES IN
SUCH DISTRIBUTION TO AN EMPLOYEES' TRUST DESCRIBED IN SECTION
401(A) WHICH IS EXEMPT FROM TAX SECTION 501(A), OR TO AN ANNUITY
PLAN DESCRIBED IN SECTION 403(A) //26 USC 403.// ON OR BEFORE THE
60TH DAY AFTER THE DAY ON WHICH HE RECEIVED SUCH PROPERTY, TO THE
EXTENT THE FAIR MARKET VALUE OF SUCH PROPERTY EXCEEDS THE AMOUNT
REFERRED TO IN SUBSECTION (E) (4) (D) (I), AND
"(C) THE AMOUNT SO TRANSFERRED CONSISTS OF THE PROPERTY (OTHER
THAN MONEY) DISTRIBUTED, TO THE EXTENT THAT THE FAIR MARKET VALUE
OF SUCH PROPERTY DOES NOT EXCEED THE AMOUNT REQUIRED PURSUANT TO
SUBPARAGRAPH (B),
THEN SUCH DISTRIBUTIONS ARE NOT INCLUDIBLE IN GROSS INCOME FOR THE YEAR
IN WHICH PAID. FOR PURPOSES OF THIS TITLE, A TRANSFER DESCRIBED IN
SUBPARAGRAPH (B) (I) SHALL BE TREATED AS A ROLLOVER CONTRIBUTION AS
DESCRIBED IN SECTION 408(D) (3). //ANTE, P. 959.// SUBPARAGRAPH (B)
(II) DOES NOT APPLY IN THE CASE OF A TRANSFER TO AN EMPLOYEES TRUST, OR
ANNUITY PLAN IF ANY PART OF THE LUMP SUM DISTRIBUTION DESCRIBED IN
SUBPARAGRAPH (A) IS ATTRIBUTABLE TO A TRUST FORMING PART OF A PLAN UNDER
WHICH THE EMPLOYEE WAS AN EMPLOYEE WITHIN THE MEANING OF SECTION 401(C)
(1) AT THE TIME CONTRIBUTIONS WERE MADE ON HIS BEHALF UNDER THE PLAN."
(6) SECTION 403(A) (RELATING TO TAXATION OF EMPLOYEE ANNUITIES)
IS AMENDED BY ADDING AFTER PARAGRAPH (3) THE FOLLOWING NEW
PARAGRAPH:
"(4) ROLLOVER AMOUNTS.--IN THE CASE OF AN EMPLOYEE ANNUITY
DESCRIBED IN 403(A), IF--,
"(A) THE BALANCE TO THE CREDIT OF AN EMPLOYEE IS PAID TO HIM IN
ONE OR MORE DISTRIBUTIONS WHICH CONSTITUTE A LUMP SUM DISTRIBUTION
WITHIN THE MEANING OF SECTION 402(E) (4) (A) //ANTE, P. 953.//
DETERMINED WITHOUT REFERENCE TO SECTION 402(E) (4) (B),
"(B) (I) THE EMPLOYEE TRANSFERS ALL THE PROPERTY HE RECEIVES IN
SUCH DISTRIBUTION TO AN INDIVIDUAL ACCOUNT DESCRIBED IN SECTION
408(A), AN INDIVIDUAL RETIREMENT ANNUITY DESCRIBED IN SECTION
408(B) (OTHER THAN AN ENDOWMENT CONTRACT), OR A RETIREMENT BOND
DESCRIBED IN SECTION 409, ON OR BEFORE THE 60TH DAY AFTER THE DAY
ON WHICH HE RECEIVED SUCH PROPERTY TO THE EXTENT THE FAIR MARKET
VALUE OF SUCH PROPERTY EXCEEDS THE AMOUNT REFERRED TO IN SECTION
402(E) (4) (D) (I), OR
"(II) THE EMPLOYEE TRANSFERS ALL THE PROPERTY HE RECEIVES IN
SUCH DISTRIBUTION TO AN EMPLOYEES' TRUST DESCRIBED IN SECTION 401
(A) WHICH IS EXEMPT FROM TAX UNDER SECTION 501(A), OR TO AN
ANNUITY PLAN DESCRIBED IN SUBSECTION (A) ON OR BEFORE THE 60TH DAY
AFTER THE DAY ON WHICH HE RECEIVED SUCH PROPERTY TO THE EXTENT THE
FAIR MARKET VALUE OF SUCH PROPERTY EXCEEDS THE AMOUNT REFERRED TO
IN SECTION 402(E) (4) (D) (I), AND
"(C) THE AMOUNT SO TRANSFERRED CONSISTS OF THE PROPERTY
DISTRIBUTED TO THE EXTENT THAT THE FAIR MARKET VALUE OF SUCH
PROPERTY DOES NOT EXCEED THE AMOUNT REQUIRED TO BE TRANSFERRED TO
SUBPARAGRAPH (B),
THEN SUCH DISTRIBUTION IS NOT INCLUDIBLE IN GROSS INCOME FOR THE YEAR IN
WHICH PAID. FOR PURPOSES OF THIS TITLE, A TRANSFER DESCRIBED IN
SUBPARAGRAPH (B) (I) SHALL BE TREATED AS A ROLLOVER CONTRIBUTION
DESCRIBED IN SECTION 408(D)(3). SUBPARAGRAPH (B) (II) DOES NOT APPLY IN
THE CASE OF A TRANSFER TO AN EMPLOYEES' TRUST, OR ANNUITY PLAN IF ANY
PART OF THE LUMP SUM DISTRIBUTION DESCRIBED IN SUBPARAGRAPH (A) IS
ATTRIBUTABLE TO AN ANNUITY PLAN UNDER WHICH THE EMPLOYEE WAS AN EMPLOYEE
WITHIN THE MEANING OF SECTION 401(C) (1) AT THE TIME CONTRIBUTIONS WERE
MADE ON HIS BEHALF UNDER THE PLAN.".
(7) SECTION 3401(A) (12) //26 USC 3401.// (RELATING TO
EXEMPTION FROM COLLECTION OF INCOME TAX AT SOURCE ON CERTAIN
WAGES) IS AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING NEW
SUBPARAGRAPH:
"(D) FOR A PAYMENT DESCRIBED IN SECTION 219(A) //ANTE, P.
958.// IF, AT THE TIME OF SUCH PAYMENT, IT IS REASONABLE TO
BELIEVE THAT THE EMPLOYEE WILL BE ENTITLED TO A DEDUCTION UNDER
SUCH SECTION FOR PAYMENT; OR".
(8) SECTION 6047 //26 USC 6047.// (RELATING TO INFORMATION
RELATING TO CERTAIN TRUSTS AND ANNUITY AND BOND PURCHASE PLANS) IS
AMENDED BY REDESIGNATING SUBSECTION (D) AS SUBSECTION (E) AND BY
INSERTING AFTER SUBSECTION (C) THE FOLLOWING NEW SUBSECTION:
"(D) OTHER PROGRAMS.--TO THE EXTENT PROVIDED BY REGULATIONS
PRESCRIBED BY THE SECRETARY OR HIS DELEGATE, THE PROVISIONS OF THIS
SECTION APPLY WITH RESPECT TO ANY PAYMENT DESCRIBED IN SECTION 219(A)
AND TO TRANSACTIONS OF ANY TRUST DESCRIBED IN SECTION 408(A) //ANTE, P.
959.// OR UNDER AN INDIVIDUAL RETIREMENT ANNUITY DESCRIBED IN SECTION
408(B).".
(9) SECTION 805(D) (I) //26 USC 805.// (RELATING TO DEFINITION
OF PENSION PLAN RESERVES) IS AMENDED BY STRIKING OUT "OR" AT THE
END OF SUBPARAGRAPH (C), BY STRIKING OUT "FOREGOING" AT THE END OF
SUBPARAGRAPH (D) AND INSERTING IN LIEU THEREOF "FOREGOING; OR",
AND BY ADDING AT THE END THEREOF THE FOLLOWING NEW PARAGRAPH:
"(E) PURCHASED UNDER CONTRACTS ENTERED INTO WITH TRUSTS WHICH
(AT THE TIME THE CONTRACTS WERE ENTERED INTO) WERE INDIVIDUAL
RETIREMENT ACCOUNTS DESCRIBED IN SECTION 408(A) OR UNDER CONTRACTS
ENTERED INTO WITH INDIVIDUAL RETIREMENT ANNUITIES DESCRIBED IN
SECTION 408(B)."
(10) SECTION 72 (RELATING TO ANNUITIES) IS AMENDED--,
(A) BY INSERTING AFTER "501(A)" IN SUBSECTION (M) (4) (A) ", AN
INDIVIDUAL RETIREMENT AMOUNT DESCRIBED IN SECTION 408(A), AN
INDIVIDUAL RETIREMENT ANNUITY DESCRIBED IN SECTION 408(B)",
(B) BY STRIKING OUT AT THE END OF SUBSECTION (M) (6) "401 (C)
(3)" AND INSERTING IN LIEU THEREOF "401(C) (3) AND INCLUDES AN
INDIVIDUAL FOR WHOSE BENEFIT AN INDIVIDUAL RETIREMENT ACCOUNT OR
ANNUITY DESCRIBED IN SECTION 408(A) OR (B) IS MAINTAINED".
(11) SECTION 801(G) (7) (RELATING TO BASIS OF ASSETS HELD FOR
QUALIFIED PENSION PLAN CONTRACTS) IS AMENDED BY STRIKING OUT "OR
(D)" AND INSERTING IN LIEU THEREOF "(D), OR (E)".
(H) CLERICAL AMENDMENTS.--,
(1) THE TABLE OF SECTIONS FOR PART VII OF SUBCHAPTER B OF
CHAPTER I IS AMENDED BY STRIKING OUT THE ITEM RELATING TO SECTION
219 AND INSERTING IN LIEU THE FOLLOWING:
"SEC. 219. RETIREMENT SAVINGS.
"SEC. 220. CROSS REFERENCES.".
THE TABLE OF SECTION FOR SUBPART A OF PART I OF SUBCHAPTER D OF
CHAPTER I IS AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING:
"SEC. 408. RETIREMENT SAVINGS.
"SEC. 409. CROSS REFERENCES.".
(3) THE TABLE OF SECTIONS FOR CHAPTER 40 IS AMENDED BY
INSERTING AFTER THE ITEM RELATING TO SECTION 4972 THE FOLLOWING
NEW ITEMS:
"SEC. 4973. TAX ON EXCESS CONTRIBUTIONS TO INDIVIDUAL RETIREMENT
ACCOUNTS, CERTAIN 403(B) CONTRACTS, CERTAIN INDIVIDUAL RETIREMENTS
ANNIUTIES, AND CERTAIN RETIREMENT BONDS.
"SEC. 4974. TAX ON CERTAIN ACCUMULATIONS IN INDIVIDUAL RETIREMENT
ACCOUNTS.
"SEC. 4975. TAX ON PROHIBITED TRANSACTIONS.".
(4) THE TABLE OF SECTION FOR SUBCHAPTER B OF CHAPTER 68 IS
AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING NEW ITEM:
"SEC. 6693. FAILURE TO PROVIDE REPORTS ON INDIVIDUAL RETIREMENT
ACCOUNTS OR ANNUITIES.".
(I) EFFECTIVE DATES.--,
(1) THE AMENDMENTS MADE BY SUBSECTIONS (A), (B), AND (C) APPLY
TO TAXABLE YEARS BEGINNING AFTER DECEMBER 31, 1974. //26 USC 219
NOTE.//
(2) THE AMENDMENTS MADE BY SUBSECTIONS (D) THROUGH (H) EXCEPT
SUBSECTION (G) (5) AND (6) SHALL TAKE EFFECT ON JANUARY 1, 1975.
//26 USC 4973 NOTE.//
(3) THE AMENDMENTS MADE BY SUBSECTION (G) (5) AND (6) SHALL
APPLY ON AND AFTER THE DATE OF ENACTMENT OF THIS ACT WITH RESPECT
TO CONTRIBUTIONS TO AN EMPLOYEES' TRUST DESCRIBED IN SECTION 401(
A) OF THE INTERNAL REVENUE CODE OF 1954 WHICH IS EXEMPT FROM TAX
UNDER SECTION 501(A) OF SUCH CODE OR AN ANNUITY PLAN DESCRIBED IN
SECTION 403(A) OF SUCH CODE. //26 USC 402 NOTE.//
(A) EXCISE TAX ON PROHIBITED TRANSACTIONS.--CHAPTER 43 //ANTE, P.
967.// (RELATING TO QUALIFIED PENSION, ETC., PLANS) IS AMENDED BY ADDING
AFTER SECTION 4974 THE FOLLOWING NEW SECTION:
"(A) INITIAL TAXES ON DISQUALIFIED PERSON.--THERE IS HEREBY IMPOSED A
TAX ON EACH PROHIBITED TRANSACTION. THE RATE OF TAX SHALL BE EQUAL TO 5
PERCENT OF THE AMOUNT INVOLVED WITH RESPECT TO THE PROHIBITED
TRANSACTION FOR EACH YEAR (OR PART THEREOF) IN THE TAXABLE PERIOD. THE
TAX IMPOSED BY THIS SUBSECTION SHALL BE PAID BY ANY DISQUALIFIED PERSON
WHO PARTICIPANTS IN THE PROHIBITED TRANSACTION (OTHER THAN A FIDUCIARY
ACTING ONLY AS SUCH).
"(B) ADDITIONAL TAXES ON DISQUALIFIED PERSON.--IN ANY CASE IN WHICH
AN INITIAL TAX IS IMPOSED BY SUBSECTION (A) ON A PROHIBITED TRANSACTION
AND THE TRANSACTION IS NOT CORRECTED WITHIN THE THE CORRECTION PERIOD,
THERE IS HEREBY IMPOSED A TAX EQUAL TO 100 PERCENT OF THE AMOUNT
INVOLVED. THE TAX IMPOSED BY THIS SUBSECTION SHALL BE PAID BY ANY
DISQUALIFIED PERSON WHO PARTICIPATED IN THE PROHIBITED TRANSACTION
(OTHER THAN A FIDUCIARY ACTING ONLY AS MUCH).
"(C) PROHIBITED TRANSACTION.--,
"(1) GENERAL RULE.--FOR PURPOSES OF THIS SECTION, THE TERM
'PROHIBITED TRANSACTION' MEANS ANY DIRECT OR INDIRECT--,
"(A) A SALE OR EXCHANGE, OR LEASING, OF ANY PROPERTY BETWEEN A
PLAN AND A DISQUALIFIED PERSON;
"(B) LENDING OF MONEY OR OTHER EXTENSION OF CREDIT BETWEEN A
PLAN AND A DISQUALIFIED PERSON;
"(C) FURNISHING OF GOODS, SERVICES, OR FACILITIES BETWEEN A
PLAN AND A DISQUALIFIED PERSON;
"(D) TRANSFER TO, OR USE BY OR FOR THE BENEFIT OF, A
DISQUALIFIED PERSON OF THE INCOME OR ASSETS OF A PLAN;
"(E) ACT BY A DISQUALIFIED PERSON WHO IS A FIDUCIARY WHEREBY HE
DEALS WITH THE INCOME OR ASSETS OF A PLAN IN HIS OWN INTEREST OR
FOR OWN ACCOUNT; OR
"(F) RECEIPT OF ANY CONSIDERATION FOR HIS OWN PERSONAL ACCOUNT
BY ANY DISQUALIFIED PERSON WHO IS A FIDUCIARY FROM ANY PARTY
DEALING WITH THE PLAN IN CONNECTION WITH A TRANSACTION INVOLVING
THE INCOME OR ASSETS OF THE PLAN.
"(2) SPECIAL EXEMPTION.--THE SECRETARY OR HIS DELEGATE SHALL
ESTABLISH AN EXEMPTION PROCEDURE FOR PURPOSES OF THIS SUBSECTION.
PURSUANT TO SUCH PROCEDURE, HE MAY GRANT A CONDITIONAL OR
UNCONDITIONAL EXEMPTION OF ANY DISQUALIFIED PERSON OR TRANSACTION,
ORDERS OF DISQUALIFIED PERSONS OR TRANSACTIONS, FROM ALL OR PART
OF RESTRICTIONS IMPOSED BY PARAGRAPH (1) OF THIS SUBSECTION.
ACTION UNDER THIS SUBPARAGRAPH MAY BE TEKEN ONLY AFTER
CONSULTATION AND COORDINATION WITH THE SECRETARY OF LABOR. THE
SECRETARY OR HIS DELEGATE MAY NOT GRANT AN EXEMPTION UNDER THIS
PARAGRAPH UNLESS HE FINDS THAT SUCH EXEMPTION IS--,
"(A) ADMINISTRATIVELY FEASIBLE,
"(B) IN THE INTERESTS OF THE PLAN AND OF ITS PARTICIPANTS AND
BENEFICIARIES, AND
"(C) PROTECTIVE OF THE RIGHTS OF PARTICIPANTS AND BENEFICIARIES
OF THE PLAN. BEFORE GRANTING AN EXEMPTION UNDER THIS PARAGRAPH,
THE SECRETARY OR HIS DELEGATE SHALL REQUIRE ADEQUATE NOTICE TO BE
GIVEN TO INTERESTED PERSONS AND SHALL PUBLISH NOTICE IN THE
FEDERAL REGISTER OF THE PENDENCY OF SUCH EXEMPTION AND SHALL
AFFORD INTERESTED PERSONS AN OPPORTUNITY TO PRESENT VIEWS. NO
EXEMPTION MAY BE GRANTED UNDER THIS PARAGRAPH WITH RESPECT TO A
TRANSACTION DESCRIBED IN SUBPARAGRAPH (E) OR (F) OF PARAGRAPH (1)
UNLESS THE SECRETARYB OR HIS DELEGATE AFFORDS AN OPPORTUNITY FOR A
HEARING AND MAKES DETERMINATION ON THE RECORD WITH RESPECT TO THE
FINDINGS REQUIRED UNDER SUBPARAGRAPHS (A), (B), AND (C) OF THIS
PARAGRAPH, EXCEPT THAT IN LIEU OF SUCH HEARING THE SECRETARY OR
HIS DELEGATE MAY ACCEPT ANY RECORD MADE BY THE SECRETARY OF LABOR
WITH RESPECT TO AN APPLICATION FOR EXEMPTION UNDER SECTION 408(A)
OF TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974.
//ANTE, P. 883.//
"(3) SPECIAL RULE FOR INDIVIDUAL RETIREMENT ACCOUNTS.--AN
INDIVIDUAL FOR WHOSE BENEFIT AN INDIVIDUAL RETIREMENT ACCOUNT IS
ESTABLISHED AND HIS BENEFICIARIES SHALL BE EXEMPT FOR THE TAX
IMPOSED BY THIS SECTION WITH RESPECT TO ANY TRANSACTION CONCERNING
SUCH ACCOUNT (WHICH WOULD OTHERWISE BE TAXABLE UNDER THIS SECTION)
IF, WITH RESPECT TO SUCH TRANSACTION, THE ACCOUNT CEASES TO BE AN
INDIVIDUAL RETIREMENT ACCOUNT BY REASON OF THE APPLICATION OF
SECTION 408(E) (2) (A) OR IF SECTION 408(E) (4) APPLIES TO SUCH
ACCOUNT.
"(D) EXEMPTIONS.--THE PROHIBITIONS PROVIDED IN SUBSECTION (C) SHALL
NOT APPLY TO--,
"(1) ANY LOAN MADE BY THE PLAN TO A DISQUALIFIED PERSON WHO IS
A PARTICIPANT OR BENEFICIARY OF THE PLAN IF SUCH LOAN--,
"(2) ANY CONTRACT, OR REASONABLE ARRANGEMENT, MADE WITH A
DISQUALIFIED PERSON FOR OFFICE SPACE, OR LEGAL, ACCOUNTING, OR
OTHER SERVICES NECESSARY FOR THE ESTABLISHMENT OR OPERATION OF THE
PLAN, IF NO MORE THAN REASONABLE COMPENASTION IS PAID THEREFOR;
"(3) ANY LOAN TO AN EMPLOYEE STOCK OWNERSHIP PLAN (AS DEFINED
IN SUBSECTION (E) (7)), IF--
"(A) SUCH LOAN IS PRIMARILY FOR THE BENEFIT OF PARTICIPANTS AND
BENEFICIARIES OF THE PLAN, AND
"(B) SUCH LOAN IS AT A REASONABLE RATE OF INTEREST, AND ANY
COLLATERAL WHICH IS GIVEN TO A DISQUALIFIED PERSON BY THE PLAN
CONSISTS ONLY OF QUALIFYING EMPLOYER SECURITIES (AS DEFINED IN
SUBSECTION (E) (8));
"(4) THE INVESTMENT OF ALL OR PART OF A PLAN'S ASSETS IN
DEPOSITS WHICH BEAR A REASONABLE INTEREST RATE IN A BANK OR
SIMILAR FINANCIAL INSTITUTION SUPERVISED BY THE UNITED STATES OR A
STATE, IF SUCH BANK OR OTHER INSTITUTION IS A FIDUCIARY OF SUCH
PLAN AND IF--,
"(A) THE PLAN COVERS ONLY EMPLOYEES OF SUCH BANK OR OTHER
INSTITUTION AND EMPLOYEES OF AFFILIATES OF SUCH BANK OR OTHER
INSTITUTION, OR
"(B) SUCH INVESTMENT IS EXPRESSLY AUTHORIZED BY A PROVISION OF
THE PLAN OR BY FIDUCIARY (OTHER THAN SUCH BANK OR INSTITUTION OR
AFFILIATES THEREOF) WHO IS EXPRESSLY EMPOWERED BY THE PLAN TO SO
INSTRUCT THE TRUSTEE WITH RESPECT TO SUCH INVESTMENT;
"(5) ANY CONTRACT FOR LIFE INSURANCE, HEALTH INSURANCE, OR
ANNUITIES WITH ONE OR MORE INSURERS WHICH ARE QUALIFIED TO DO
BUSINESS IN A STATE IF THE PLAN PAYS NO MORE THAN ADEQUATE
CONSIDERATION, AND IF EACH SUCH INSURER OR INSURERS IS--
"(A) THE EMPLOYER MAINTAINING THE PLAN, OR
"(B) A DISQUALIFIED PERSON WHICH IS WHOLLY OWNED (DIRECTLY OR
INDIRECTLY) BY THE EMPLOYER ESTABLISHING THE PLAN, OR BY ANY
PERSON WHICH IS A DISQUALIFIED WITH RESPECT TO THE PLAN, BUT ONLY
IF THE TOTAL PREMIUMS AND ANNUITY CONSIDERATIONS WRITTEN BY SUCH
INSURERS FOR LIFE INSURANCE, HEALTH INSURANCE, OR ANNUITIES FOR
ALL PLANS (AND THEIR EMPLOYERS) WITH RESPECT TO WHICH SUCH
INSURERS ARE DISQUALIFIED PERSONS (NOT INCLUDING PREMIUMS OR
ANNUITY CONSIDERATIONS WRITTEN BY THE EMPLOYER MAINTAINING THE
PLAN) DO NOT EXCEED 5 PERCENT OF THE TOTAL PREMIUMS AND ANNUITY
CONSIDERATIONS WRITTEN BY THE EMPLOYER MAINTAINING THE PLAN);
"(6) THE PROVISION OF ANY ANCILLARY SERVICE BY A BANK OR
SIMILAR FINANCIAL INSTITUTION SUPERVISED BY THE UNITED STATES OR A
STATE, IF SUCH SERVICE IS PROVIDED AT NOT MORE THAN REASONABLE
COMPENSATION, IF SUCH BANK OR OTHER INSTITUTION IS A FIDUCIARY OR
SUCH PLAN, AND IF--,
"(A) SUCH BANK OR SIMILAR FINANCIAL INSTITUTION HAS ADOPTED
ADEQUATE INTERNAL SAFEGUARDS WHICH ASSURE THAT THE PROVISION OF
SUCH ANCILLARY SERVICE IS CONSISTENT WITH SOUND BANKING AND
FINANCIAL PRACTICE, AS DETERMINED BY FEDERAL OR STATE SUPERVISORY
AUTHORITY, AND
"(B) THE EXTENT TO WHICH SUCH ANCILLARY SERVICE IS PROVIDED IS
SUBJECT TO SPECIFIC GUIDELINES ISSUED BY SUCH BANK OR SIMILAR
FINANCIAL INSTITUTION (AS DETERMINED BY THE SECRETARY OR HIS
DELEGATE AFTER CONSULTATION WITH FEDERAL AND STATE SUPERVISORY
AUTHORITY), AND UNDER SUCH GUIDELINES THE BANK OR SIMILAR
FINANCIAL INSTITUTION DOES NOT PROVIDE SUCH ANCILLARY SERVICE.--
"(I) IN AN EXCESSIVE OR UNREASONABLE MANNER, AND
"(II) IN A MANNER THAT WOULD BE INCONSISTENT WITH THE BEST
INTERESTS OF PARTICIPANTS AND BENEFICIARIES OF EMPLOYEE BENEFIT
PLANS;
"(7) THE EXERCISE OF A PRIVILEGE TO CONVERT SECURITIES, TO THE
EXTENT PROVIDED IN REGULATIONS OF THE SECRETARY OR HIS DELEGATE,
BUT ONLY IF THE PLAN RECEIVES NO LESS THAN ADEQUATE CONSIDERATION
PURSUANT TO SUCH CONVERSION;
"(8) ANY TRANSACTION BETWEEN A PLAN AND A COMMON OR COLLECTIVE
TRUST FUND OR POOLED INVESTMENT FUND MAINTAINED BY A DISQUALIFIED
PERSON WHICH IS A BANK OR TRUST COMPANY SUPERVISED BY A STATE OR
FEDERAL AGENCY OR BETWEEN A PLAN AND A POOLED INVESTMENT FUND OF
AN INSURANCE COMPANY QUALIFIED TO DO BUSINESS IN A STATE IF--,
"(A) THE TRANSACTION IS A SALE OR PURCHASE OF AN INTEREST IN
THE FUND,
"(B) THE BANK, TRUST COMPANY, OR INSURANCE COMPANY RECEIVES NOT
MORE THAN REASONABLE COMPENSATION, AND
"(C) SUCH TRANSACTION IS EXPRESSLY PERMITTED BY THE INSTRUMENT
UNDER WHICH THE PLAN IS MAINTAINED, OR BY A FIDUCIARY (OTHER THAN
THE BANK, TRUST COMPANY, OR INSURANCE COMPANY, OR AN AFFILIATE
THEREOF) WHO HAS AUTHORITY TO MANAGE AND CONTROL THE ASSETS OF THE
PLAN;
"(9) RECEIPT BY A DISQUALIFIED PERSON OF ANY BENEFIT TO WHICH
HE MAY BE ENTITLED AS A PARTICIPANT OR BENEFICIARY IN THE PLAN, SO
LONG AS THE BENEFIT IS COMPUTED AND PAID ON A BASIS WHICH IS
CONSISTENT WITH THE TERMS OF THE PLAN AS APPLIED TO ALL OTHER
PARTICIPANTS AND BENEFICIARIES;
"(10) RECEIPT BY A DISQUALIFIED PERSON OF ANY REASONABLE
COMPENSATION FOR SERVICES RENDERED, OR FOR THE REIMBURSEMENT OF
EXPENSES PROPERLY AND ACTUALLY INCURRED, IN THE PERFORMANCE OF HIS
DUTIES WITH THE PLAN, BUTNO PERSON SO SERVING WHO ALREADY RECEIVES
FULL-TIME PAY FROM AN EMPLOYER OR AN ASSOCIATION OF EMPLOYERS,
WHOSE EMPLOYEES ARE PARTICIPANTS IN THE PLAN OR FROM AN EMPLOYEE
ORGANIZATION WHOSE MEMBERS ARE PARTICIPANTS IN SUCH PLAN SHALL
RECEIVE COMPENSATION FROM SUCH FUND, EXCEPT FOR REIMBURSEMENT OF
EXPENSES PROPERLY AND ACTUALLY INCURRED;
"(11) SERVICE BY A DISQUALIFIED PERSON AS A FIDUCIARY IN
ADDITION TO BEING AN OFFICER, EMPLOYEE, AGENT, OR OTHER
REPRESENTATIVE OF A DISQUALIFIED PERSON;
"(12) THE MAKING BY A FIDUCIARY OF A DISTRIBUTION OF THE ASSETS
OF THE TRUST IN ACCORDANCE WITH THE TERMS OF THE PLAN IF SUCH
ASSETS ARE DISTRIBUTED IN THE SAME MANNER AS PROVIDED UNDER
SECTION 4044 OF TITLE IV OF THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974 //POST, P. 1025.// (RELATING TO ALLOCATION OF
ASSETS); OR
"(13) ANY TRANSACTION WHICH IS EXEMPT FROM SECTION 406 OF SUCH
ACT BY REASON OF SECTION 408(E) OF SUCH ACT (OR WHICH WOULD BE SO
EXEMPT IF SUCH SECTION 406 APPLIED TO SUCH TRANSACTION).
THE EXEMPTIONS PROVIDED BY THIS SUBSECTION (OTHER THAN PARAGRAPHS (9)
AND (12) SHALL NOT APPLY TO ANY TRANSACTION WITH RESPECT TO A TRUST
DESCRIBED IN SECTION 401(A) WHICH IS PART OF A PLAN PROVIDING
CONTRIBUTIONS OR BENEFITS FOR EMPLOYEES SOME OR ALL OF WHOM ARE
OWNER-EMPLOYEES (AS DEFINED IN SECTION 401(C) (3) IN WHICH A PLAN
DIRECTLY OR INDIRECTLY LENDS ANY PART OF THE CORPUS OR INCOME OF THE
PLAN TO, PAYS ANY COMPENSATION FOR PERSONAL SERVICES RENDERED TO THE
PLAN TO, OR ACQUIRES FOR THE PLAN ANY PROPERTY FROM OR SELLS ANY
PROPERTY TO, ANY SUCH OWNER-EMPLOYEE, A MEMBER OF THE FAMILY (AS DEFINED
IN SECTION 267(C) (4) //26 USC 267.// OF ANY SUCH OWNER-EMPLOYEE, OR A
CORPORATION CONTROLLED BY ANY SUCH OWNER-EMPLOYEE THROUGH THE OWNERSHIP,
DIRECTLY OR INDIRECTLY, OF 50 PERCENT OR MORE OF THE TOTAL COMBINED
VOTING POWER OF ALL CLASSES OF STOCK ENTITLED TO VOTE OR 50 PERCENT OR
MORE OF THE TOTAL VALUE OF SHARES OF ALL CLASSES OF STOCK OF THE
CORPORATION. FOR PURPOSES OF THE PRECEDING SENTENCE, A
SHAREHOLDER-EMPLOYEE (AS DEFINED IN SECTION 1379), A PARTICIPANT OR
BENEFICIARY OF AN INDIVIDUAL RETIREMENT ACCOUNT, INDIVIDUAL RETIREMENT
ANNUITY, ON AN INDIVIDUAL RETIREMENT BOND (AS DEFINED IN SECTION 408 OR
409), //ANTE, P. 959.// AND AN EMPLOYER OR ASSOCIATION OF EMPLOYEES
WHICH ESTABLISHES SUCH AN ACCOUNT OR ANNUITY UNDER SECTION 408(C) SHALL
BE DEEMED TO BE AN OWNER-EMPLOYEE.
"(E) DEFINITIONS.--,
"(1) PLAN.--FOR PURPOSES OF THIS SECTION, THE TERM 'PLAN' MEANS
A TRUST DESCRIBED IN SECTION 401(A) WHICH FORMS A PART OF A PLAN,
OR A PLAN DESCRIBED IN SECTION 403(A) OR 405(A), //ANTE, P.
969.// WHICH TRUST OR PLAN IS EXEMPT FROM TAX UNDER SECTION 501(
A), AN INDIVIDUAL RETIREMENT ACCOUNT DESCRIBED IN SECTION 408(A)
//26 USC 405.// OR AN INDIVIDUAL RETIREMENT ANNUITY DESCRIBED IN
SECTION 408(B) OR A RETIREMENT BOND DESCRIBED IN SECTION 409
//ANTE, P. 967.// (OR A TRUST, PLAN, ANNUITY, OR BOND WHICH, AT
ANY TIME, HAS BEEN DETERMINED BY THE SECRETARY OR HIS DELEGATE TO
BE SUCH A TRUST, PLAN, ACCOUNT, OR BOND).
"(2) DISQUALIFIED PERSON.--FOR PURPOSES OF THIS SECTION, THE
TERM 'DISQUALIFIED PERSON' MEANS A PERSON WHO IS--,
"(A) A FIDUCIARY;
"(B) A PERSON PROVIDING SERVICES TO THE PLAN;
"(C) AN EMPLOYER ANY OF WHOSE EMPLOYEES ARE COVERED BY THE
PLAN;
"(D) AN EMPLOYEE ORGANIZATION ANY OF WHOSE MEMBERS ARE COVERED
BY THE PLAN;
"(E) AN OWNER, DIRECT OR INDIRECT, OF 50 PERCENT OR MORE
OF--,
"(I) THE COMBINED VOTING POWER OF ALL CLASSES OF STOCK ENTITLED
TO VOTE OR THE TOTAL VALUE OF SHARES OF ALL CLASSES OF STOCK OF A
CORPORATION,
"(II) THE CAPITAL INTEREST OR THE PROFITS INTEREST OF A
PARTNERSHIP, OR
"(III) THE BENEFICIAL INTEREST OF A TRUST OR UNINCORPORATED
ENTERPRISE, WHICH IS AN EMPLOYER OR AN EMPLOYEE ORGANIZATION
DESCRIBED IN SUBPARAGRAPH (C) OR (D);
"(F) A MEMBER OF THE FAMILY (AS DEFINED IN PARAGRAPH (6)) OF
ANY INDIVIDUAL DESCRIBED IN SUBPARAGRAPH (A), (B), (C), OR (E);
"(G) A CORPORATION, PARTNERSHIP, OR TRUST OR ESTATE OF WHICH
(OR IN WHICH 50 PERCENT OR MORE OF--,
"(I) THE COMBINED VOTING POWER OF ALL CLASSES OF STOCK ENTITLED
TO VOTE OR THE TOTAL VALUE OF SHARES OF ALL CLASSES OF STOCK OF
SUCH CORPORATION,
"(II) THE CAPITAL INTEREST OR PROFITS INTEREST OF SUCH
PARTNERSHIP, OR
"(III) THE BENEFICIAL INTEREST OF SUCH TRUST OR ESTATE, IS
OWNED DIRECTLY OR INDIRECTLY, OR HELD BY PERSONS DESCRIBED IN
SUBPARAGRAPH (A), (B), (C), (D), OR (E);
"(H) AN OFFICER, DIRECTOR (OR AN INDIVIDUAL HAVING POWERS OR
RESPONSIBILITIES SIMILAR TO THOSE OF OFFICERS OR DIRECTORS), A 10
PERCENT OR MORE SHAREHOLDER, OR A HIGHLY COMPENSATED EMPLOYEE
(EARNING 10 PERCENT OR MORE OF THE YEARLY WAGES OF AN EMPLOYER) OF
A PERSON DESCRIBED IN SUBPARAGRAPH (C), (D), (E), OR (G); OR
"(I) A 10 PERCENT OR MORE (IN CAPITAL OR PROFITS) PARTNER OR
JOINT VENTURER OF A PERSON DESCRIBED IN SUBPARAGRAPH (C), (D),
(E), OR (G). THE SECRETARY, AFTER CONSULTATION AND COORDINATION
WITH THE SECRETARY OF LABOR OR HIS DELEGATE, MAY BY REGULATION
PRESCRIBE A PERCENTAGE LOWER THAN 50 PERCENT FOR SUBPARAGRAPHS (E)
AND (G) AND LOWER THAN 10 PERCENT FOR SUBPARAGRAPHS (H) AND (I).
"(3) FIDUCIARY.--FOR PURPOSES OF THIS SECTION, THE TERM
'FIDUCIARY' MEANS ANY PERSON WHO--,
"(A) EXERCISES ANY DISCRETIONARY AUTHORITY OR DISCRETIONARY
CONTROL RESPECTING MANAGEMENT OF SUCH PLAN OR EXERCISES ANY
AUTHORITY OR CONTROL RESPECTING MANAGEMENT OR DISPOSITION OF ITS
ASSETS,
"(B) RENDERS INVESTMENT ADVICE FOR A FEE OR OTHER COMPENSATION,
DIRECT OR INDIRECT, WITH RESPECT TO ANY MONEYS OR OTHER PROPERTY
OF SUCH PLAN, OR HAS ANY AUTHORITY OR RESPONSIBILITY TO DO SO, OR
"(C) HAS ANY DISCRETIONARY AUTHORITY OR DISCRETIONARY
RESPONSIBILITY IN THE ADMINISTRATION OF SUCH PLAN. SUCH TERM
INCLUDES ANY PERSON DESIGNATED UNDER SECTION 405(C) (1) (B) OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974. //ANTE, P.
878.//
"(4) STOCKHOLDINGS.--FOR PURPOSES OF PARAGRAPHS (2) (E) (I) AND
(G) (I) THERE SHALL BE TAKEN INTO ACCOUNT INDIRECT STOCKHOLDINGS
WHICH WOULD BE TAKEN INTO ACCOUNT UNDER SECTION 267(C), EXCEPT
THAT, FOR PURPOSES OF THIS PARAGRAPH, SECTION 267( C) (4) SHALL BE
TREATED AS PROVIDING THAT THE MEMBERS OF THE FAMILY OF AN
INDIVIDUAL ARE THE MEMBERS WITHIN THE MEANING OF PARAGRAPH (6).
"(5) PARTNERSHIPS; TRUSTS.--FOR PURPOSES OF PARAGRAPHS (2) (E)
(II) AND (III), (G) (II) AND (III), AND (I) THE OWNERSHIP OF
PROFITS OR BENEFICIAL INTERESTS SHALL BE DETERMINED IN ACCORDANCE
WITH THE RULES FOR CONSTRUCTIVE OWNERSHIP OF STOCK PROVIDED IN
SECTION 267(C) (OTHER THAN PARAGRRAPH (3) THEREOF), EXCEPT THAT
SECTION 267(C) (4) SHALL BE TREATED AS PROVIDING THAT THE MEMBERS
OF THE FAMILY OF AN INDIVIDUAL ARE THE MEMBERS WITHIN THE MEANING
OF PARAGRAPH (6).
"(6) MEMBER OF FAMILY.--FOR PURPOSES OF PARAGRAPH (2) (F), THE
FAMILY OF ANY INDIVIDUAL SHALL INCLUDE HIS SPOUSE, ANCESTOR,
LINEAL DESCENDANT, AND ANY SPOUSE OF LINEAL DESCENDANT.
"(7) EMPLOYEE STOCK OWNERSHIP PLAN.--THE TERM 'EMPLOYEE STOCK
OWNERSHIP PLAN' MEANS A DEFINED CONTRIBUTION PLAN--,
"(A) WHICH IS A STOCK BONUS PLAN WHICH IS QUALIFIED, OR A STOCK
BONUS AND A MONEY PURCHASE PLAN BOTH OF WHICH ARE QUALIFIED UNDER
SECTION 401(A) //ANTE, P. 953.// AND WHICH ARE DESIGNED TO INVEST
PRIMARILY IN QUALIFYING EMPLOYER SECURITIES; AND
"(B) WHICH IS OTHERWISE DEFINED IN REGULATIONS PRESCRIBED BY
THE SECRETARY OR HIS DELEGATE.
"(8) QUALIFYING EMPLOYER SECURITY.--THE TERM 'QUALIFYING
EMPLOYER SECURITY' MEANS AN EMPLOYER SECURITY WHICH IS--,
"(A) STOCK OR OTHERWISE AN EQUITY SECURITY, OR
"(B) A BOND, DEBENTURE, NOTE, OR CERTIFICATE OR OTHER EVIDENCE
OF INDEBTEDNESS WHICH IS DESCRIBED IN PARAGRAPHS (1), (2), AND (3)
OF SECTION 503(E). IF ANY MONEYS OR OTHER PROPERTY OF A PLAN ARE
INVESTED IN SHARES OF AN INVESTMENT COMPANY REGISTERED UNDER THE
INVESTMENT COMPANY ACT OF 1940, //54 STAT. 789, 15 USC 80A - 51.//
THE INVESTMENT SHALL NOT CAUSE THAT INVESTMENT COMPANY OR THAT
INVESTMENT COMPANY'S INVESTMENT ADVISER OR PRINCIPAL UNDERWRITER
TO BE TREATED AS A FIDUCIARY OR A DISQUALIFIED PERSON FOR PURPOSES
OF THIS SECTION, EXCEPT WHEN AN INVESTMENT COMPANY OR ITS
INVESTMENT ADVISER OR PRINCIPAL UNDERWRITER ACTS IN CONNECTION
WITH A PLAN COVERING EMPLOYEES OF THE INVESTMENT COMPANY, ITS
INVESTMENT ADVISER, OR ITS PRINCIPAL UNDERWRITER.
"(F) OTHER DEFINITIONS AND SPECIAL RULES.--FOR PURPOSES OF THIS
SECTION--,
"(1) JOINT AND SEVERAL LIABILITY.--IF MORE THAN ONE PERSON IS
LIABLE UNDER SUBSECTION (A) OR (B) WITH RESPECT TO ANY ONE
PROHIBITED TRANSACTION,ALL SUCH PERSONS SHALL BE JOINTLY AND
SEVERALLY LIABLE UNDER SUCH SUBSECTION WITH RESPECT TO SUCH
TRANSACTION.
"(2) TAXABLE PERIOD.--THE TERM 'TAXABLE PERIOD' MEANS, WITH
RESPECT TO ANY PROHIBITED TRANSACTION, THE PERIOD BEGINNING WITH
THE DATE ON WHICH THE PROHIBITED TRANSACTION OCCURS AND ENDING ON
THE EARLIER OF--,
"(A) THE DATE OF A NOTICE OF DEFICIENCY PURSUANT TO SECTION
6212, //26 USC 6212.// WITH RESPECT TO THE TAX IMPOSED BY
SUBSECTION (A), OR
"(B) THE DATE ON WHICH CORRECTION OF THE PROHIBITED TRANSACTION
IS COMPLETED.
"(3) SALE OR EXCHANGE; ENCUMBERED PROPERTY.--A TRANSFER OF
REAL OR PERSONAL PROPERTY BY A DISQUALIFIED PERSON TO A PLAN SHALL
BE TREATED AS A SALE OR EXCHANGE IF THE PROPERTY IS SUBJECT TO A
MORTGAGE OR SIMILAR LIEN WHICH THE PLAN ASSUMES OR IF IT IS
SUBJECT TO A MORTGAGE OR SIMILAR LIEN WHICH A DISQUALIFIED PERSON
PLACED ON THE PROPERTY WITHIN THE 10-YEAR PERIOD ENDING ON THE
DATE OF THE TRANSFER.
"(4) AMOUNT INVOLVED.--THE TERM 'AMOUNT INVOLVED' MEANS, WITH
RESPECT TO A PROHIBITED TRANSACTION, THE GREATER OF THE AMOUNT OF
MONEY AND THE FAIR MARKET VALUE OF THE OTHER PROPERTY GIVEN OR THE
AMOUNT OF MONEY AND THE FAIR MARKET VALUE OF THE OTHER PROPERTY
RECEIVED; EXCEPT THAT, IN THE CASE OF SERVICES DESCRIBED IN
PARAGRAPHS (2) AND (10) OF SUBSECTION (D) THE AMOUNT INVOLVED
SHALL BE ONLY THE EXCESS COMPENSATION. FOR PURPOSES OF THE
PRECEDING SENTENCE, THE FAIR MARKET VALUE--,
"(A) IN THE CASE OF A TAX IMPOSED BY SUBSECTION (A), SHALL BE
DETERMINED AS OF THE DATE ON WHICH THE PROHIBITED TRANSACTION
OCCURS: AND
"(B) IN THE CASE OF THE TAX IMPOSED BY SUBSECTION (B), SHALL BE
THE HIGHEST FAIR MARKET VALUE DURING THE CORRECTION PERIOD.
"(5) CORRECTION.--THE TERMS 'CORRECTION' AND 'CORRECT' MEAN,
WITH RESPECT TO A PROHIBITED TRANSACTION, UNDOING THE TRANSACTION
TO THE EXTENT POSSIBLE, BUT IN ANY CASE PLACING THE PLAN IN A
FINANCIAL POSITION NOT WORSE THAN THAT IN WHICH IT WOULD BE IF THE
DISQUALIFIED PERSON WERE ACTING UNDER THE HIGHEST FIDUCIARY
STANDARDS.
"(6) CORRECTION PERIOD.--THE TERM 'CORRECTION PERIOD' MEANS,
WITH RESPECT TO A PROHIBITED TRANSACTION, THE PERIOD BEGINNING
WITH THE DATE ON WHICH THE PROHIBITED TRANSACTION OCCURS AND
ENDING 90 DAYS AFTER THE DATE OF MAILING OF A NOTICE OF DEFICIENCY
WITH RESPECT TO THE TAX IMPOSED BY SUBSECTION (B) UNDER SECTION
6212, EXTENDED BY--,
"(A) ANY PERIOD IN WHICH A DEFICIENCY CANNOT BE ASSESSED UNDER
SECTION 6213(A), AND
"(B) ANY OTHER PERIOD WHICH THE SECRETARY OR HIS DELEGATE
DETERMINES IS REASONABLE AND NECESSARY TO BRING ABOUT THE
CORRECTIONS OF THE PROHIBITED TRANSACTION.
"(G) APPLICATION OF SECTION.--THIS SECTION SHALL NOT APPLY--,
"(1) IN THE CASE OF A PLAN TO WHICH A GUARANTEED BENEFIT POLICY
(AS DEFINED IN SECTION 401(B) (2) (B) OF THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974) //ANTE, P. 874.// IS ISSUED, TO ANY
ASSETS OF THE INSURANCE COMPANY, INSURANCE SERVICE, OR INSURANCE
ORGANIZATION MERELY BECAUSE OF ITS ISSUANCE OF SUCH POLICY;
"(2) TO A GOVERNMENTAL PLAN (WITHIN THE MEANING OF SECTION
414(D)); //ANTE, P. 925.// OR
"(3) TO A CHURCH PLAN (WITHIN THE MEANING OF SECTION 414(E))
WITH RESPECT TO WHICH THE ELECTION PROVIDED BY SECTION 410(D)
//ANTE, P. 898.// HAS NOT BEEN MADE.
IN THE CASE OF A PLAN WHICH INVESTS IN ANY SECURITY ISSUED BY AN
INVESTMENT COMPANY REGISTERED UNDER THE INVESTMENT ACT OF 1940, //54
STAT. 789, 15 USC 80A - 51.// THE ASSETS OF SUCH PLAN SHALL BE DEEMED TO
INCLUDE SUCH SECURITY BUT SHALL NOT, BY REASON OF SUCH INVESTMENT, BE
DEEMED TO INCLUDE ANY ASSETS OF SUCH COMPANY.
"(H) NOTIFICATION OF SECRETARY OF LABOR.--BEFORE SENDING A NOTICE OF
DEFICIENCY WITH RESPECT TO THE TAX IMPOSED BYSUBSECTION (A) OR (B), THE
SECRETARY OR HIS DELEGATE SHALL NOTIFY THE SECRETARY OF LABOR AND
PROVIDE HIM A REASONABLE OPPORTUNITY TO OBTAIN A CORRECTION OF THE
PROHIBITED TRANSACTIO OR TO COMMENT ON THE IMPOSITION OF SUCH TAX.
"(I) CROSS REFERENCE.--,
"FOR PROVISIONS CONCERNING COORDINATION PROCEDURES BETWEEN SECRETARY
OF LABOR AND SECRETARY OF TREASURY WITH RESPECT TO APPLICATION TO TAX
IMPOSED BY THIS SECTION AND FOR AUTHORITY TO WAIVE IMPOSITION OF THE TAX
IMPOSED BY SUBSECTION (B), SEE SECTION 3003 OF THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974.". //POST, P. 998.//
(B) AMINDMENT OF SECTION 503.--SECTION 503 //26 USC 503.// (RELATING
TO REQUIREMENTS FOR EXEMPTION) IS AMENDED--
(1) BY STRIKING OUT "OR (18)" IN SUBSECTION (A) (1) (A),
(2) BY AMENDING SUBSECTION (A) (1) (B) BY INSERTING "WHICH IS
REFERRED TO IN SECTION 4975(G) (2) OR (3)" AFTER "DESCRIBED IN
SECTION 401(A)",
(3) BY STRIKING OUT "OR SECTION 401C IN SUBSECTION (A) (2) AND
INSERTING IN LIEU THEREOF "OR PARAGRAPH (1) (B)", AND
(5) BY STRIKING OUT SUBSECTION (G).
(C) EFFECTIVE DATE AND SAVING PROVISIONS.--//26 USC 4975 NOTE.//
(1) (A) THE AMENDMENTS MADE BY THIS SECTION SHALL TAKE EFFECT
ON JANUARY 1, 1975.
(B) IF, BEFORE THE AMENDMENTS MADE BY THIS SECTION TAKE EFFECT,
AN ORGANIZATION DESCRIBED IN SECTION 401(A) OF THE INTERNAL
REVENUE CODE OF 1954 //ANTE, P. 935.// IS DENIED EXEMPTION UNDER
SECTION 501(A) OF SUCH CODE BY REASON OF SECTION 503 OF SUCH CODE,
THE DENIAL OF SUCH EXEMPTION SHALL NOT APPLY IF THE DISQUALIFIED
PERSON ELECTS (IN SUCH MANNER AND AT SUCH TIME AS THE SECRETARY OR
HIS DELEGATE SHALL BY REGULATIONS PRESCRIBE) TO PAY, WITH RESPECT
TO THE PROHIBITED TRANSACTION (WITHIN THE MEANING OF SECTION
503(B) OR (G) WHICH RESULTED IN SUCH DENIAL OF EXEMPTION, A TAX IN
THE AMOUNT AND IN THE MANNER PROVIDED WITH RESPECT TO THE TAX
IMPOSED UNDER SECTION 4975 OF SUCHCODE. //ANTE, P. 971.// AN
ELECTION MADE UNDER THIS SUBPARAGRAPH, ONCE MADE, SHALL BE
IRREVOCABLE. THE SECRETARY OF THE TREASURY OR HIS DELEGATE SHALL
PRESCRIBE SUCH REGULATIONS AS MAY BE NECESSARY TO CARRY OUT THE
PURPOSES OF THIS SUBPARAGRAPH.
(2) SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1954 (RELATING
TO TAX ON PROHIBITED TRANSACTIONS) SHALL NOT APPLY TO--,
(A) A LOAN OF MONEY OR OTHER EXTENSION OF CREDIT BETWEEN A PLAN
AND A DISQUALIFIED PERSON UNDER A BINDING CONTRACT IN EFFECT ON
JULY 1, 1974 (OR PURSUANT TO RENEWALS OF SUCH A CONTRACT), UNTIL
JUNE 30, 1984, IF SUCH LOAN OR OTHER EXTENSION OF CREDIT REMAINS
AT LEAST AS FAVORABLE TO THE PLAN AS AN ARM'S-LENGTH TRANSACTION
WITH AN UNRELATED PARTY WOULD BE, AND IF THE EXECUTION OF THE
CONTRACT, THE MAKING OF THE LOAN, OR THE EXTENSION OF CREDIT WAS
NOT, AT THE TIME OF SUCH EXECUTION, MAKING, OR EXTENSION, A
PROHIBITED TRANSACTIONS (WITHIN THE MEANING OF SECTION 503(B) OF
SUCH CODE OR CORRESPONDING PROVISIONS OF PRIOR LAW);
(B) A LEASE OR JOINT USE OF PROPERTY INVOLVING THE PLAN AND A
DISQUALIFIED PERSON PURSUANT TO A BINDING CONTRACT IN EFFECT ON
JULY 1, 1974 (OR PURSUANT TO RENEWALS OF SUCH A CONTRACT), UNTIL
JUNE 30, 1984, IF SUCH LEASE OR JOINT USE REMAINS AT LEAST AS
FAVORABLE TO THE PLAN AS AN ARM'S-LENGTH TRANSACTION WITH AN
UNRELATED PARTY WOULD BE AND IF THE EXECUTION OF THE CONTRACT WAS
NOT, AT THE TIME OF SUCH EXECUTION, A PROHIBITED TRANSACTION
(WITHIN THE MEANING OF SECTION 503(B) OF SUCH CODE) //26 USC
503.// OR THE CORRESPONDING PROVISIONS OF PRIOR LAW;
(C) THE SALE, EXCHANGE, OR OTHER DISPOSITION OF PROPERTY
DESCRIBED IN SUBPARAGRAPH (B) BETWEEN A PLAN AND A DISQUALIFIED
PERSON BEFORE JUNE 30, 1984, IF--,
(I) IN THE CASE OF A SALE, EXCHANGE, OR OTHER DISPOSITION OF
THE PROPERTY BY THE PLAN TO THE DISQUALIFIED PERSON, THE PLAN
RECEIVES AN AMOUNT WHICH IS NOT LESS THAN THE FAIR MARKET VALUE OF
THE PROPERTY AT THE TIME OF SUCH DISPOSITION; AND
(II) IN THE CASE OF THE ACQUISITION OF THE PROPERTY BY THE
PLAN, THE PLAN PAYS AN AMOUNT WHICH IS NOT IN EXCESS OF THE FAIR
MARKET VALUE OF THE PROPERTY AT THE TIME OF SUCH ACQUISITION;
(D) UNTIL JUNE 30, 1977, THE PROVISION OF SERVICES TO WHICH
SUBPARAGRAPHS (A), (B), AND (C) DO NOT APPLY BETWEEN A PLAN AND A
DISQUALIFIED PERSON (I) UNDER A BINDING CONTRACT IN EFFECT ON JULY
1, 1974 (OR PURSUANT TO RENEWALS OF SUCH CONTRACT), OR (II) IF THE
DISQUALIFIED PERSON ORDINARILY AND CUSTOMARILY FURNISHED SUCH
SERVICES ON JUNE 30, 1974, IF SUCH PROVISION OF SERVICES REMAINS
AT LEAST AS FAVORABLE TO THE PLAN AS AN ARM'S-LENGTH TRANSACTION
WITH AN UNRELATED PARTY WOULD BE AND IF THE PROVISION OF SERVICES
WAS NOT, AT THE TIME OF SUCH PROVISION, A PROHIBITED TRANSACTION
(WITHIN THE MEANING OF SECTION 503 (B) OF SUCH CODE) OR THE
CORRESPONDING PROVISIONS OF PRIOR LAW; OR
(E) THE SALE, EXCHANGE, OR OTHER DISPOSITION OF PROPERTY WHICH
IS OWNED BY A PLAN ON JUNE 30, 1974, AND ALL TIMES THEREAFTER, TO
A DISQUALIFIED PERSON, IF SUCH PLAN IS REQUIRED TO DISPOSE OF SUCH
PROPERTY IN ORDER TO COMPLY WITH THE PROVISIONS OF SECTION 407(A)
(2) (A) (RELATING TO THE PROHIBITION AGAINST HOLDING EXCESS
EMPLOYER SECURITIES AND EMPLOYER REAL PROPERTY) OF THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, //ANTE, P. 880.// AND IF
THE PLAN RECEIVES NOT LESS THAN ADEQUATE CONSIDERATION.
FOR PURPOSES OF THIS PARAGRAPH, THE TERM "DISQUALIFIES PERSON"
HAS THE MEANING PROVIDED BY SECTION 4975(E) (2) OF THE INTERNAL
REVENUE CODE OF 1954.
(A) PLAN REQUIREMENTS.--,
(1) SECTION 401(A) (RELATING TO REQUIREMENTS FOR QUALIFICATION)
IS AMENDED BY INSERTING AFTER PARAGRAPH (15) THE FOLLOWING NEW
PARAGRAPH: //ANTE, P. 938.//
"(16) A TRUST SHALL NOT CONSTITUTE A QUALIFIED TRUST UNDER THIS
SECTION IF THE PLAN OF WHICH SUCH TRUST IS A PART PROVIDES FOR
BENEFITS OR CONTRIBUTIONS WHICH EXCEED THE LIMITATIONS OF SECTION
415."
(2) SUBPART B OF PART I OF SUBCHAPTER D OF CHAPTER I IS AMENDED
BY INSERTING AFTER SECTION 414 //ANTE, P. 925.// THE FOLLOWING NEW
SECTION:
UNDER QUALIFIED PLANS.
"(A) GENERAL RULE.--,
"(1) TRUSTS.--A TRUST WHICH IS A PART OF A PENSION,
PROFIT-SHARING, OR STOCK BONUS PLAN SHALL NOT CONSTITUTE A
QUALIFIED TRUST UNDER SECTION 401(A) IF--, //ANTE, P. 935.//
"(A) IN THE CASE OF A DEFINED BENEFIT PLAN, THE PLAN PROVIDES
FOR THE PAYMENT OF BENEFITS WITH RESPECT TO A PARTICIPANT WHICH
EXCEED THE LIMITATION OF SUBSECTION (B),
"(B) IN THE CASE OF A DEFINED CONTRIBUTION PLAN, CONTRIBUTIONS
AND OTHER ADDITIONS UNDER THE PLAN WITH RESPECT TO ANY PARTICIPANT
FOR ANY TAXABLE YEAR EXCEED THE LIMITATION OF SUBSECTION (C), OR
"(C) IN ANY CASE IN WHICH AN INDIVIDUAL IS A PARTICIPANT IN
BOTH A DEFINED BENEFIT PLAN AND A DEFINED CONTRIBUTION PLAN
MAINTAINED BY THE EMPLOYER, THE TRUST HAS BEEN DISQUALIFIED UNDER
SUBSECTION (G).
"(2) SECTION APPLIES TO CERTAIN ANNUITIES AND ACCOUNTS.-- IN
THE CASE OF--,
"(A) AN EMPLOYEE ANNUITY PLAN DESCRIBED IN SECTION 403 (A),
//ANTE, P. 969.//
"(B) AN ANNUITY CONTRACT DESCRIBED IN SECTION 403(B), //ANTE,
P. 940.//
"(C) AN INDIVIDUAL RETIREMENT ACCOUNT DESCRIBED IN SECTION
408(A), //ANTE, P. 959.//
"(D) AN INDIVIDUAL RETIREMENT ANNUITY DESCRIBED IN SECTION
408(B),
"(E) A PLAN DESCRIBED IN SECTION 405(A). OR //26 USC 405.//
"(F) A RETIREMENT BOND DESCRIBED IN SECTION 409, //ANTE, P.
964.//
SUCH CONTRACT, ANNUITY PLAN, ACCOUNT, ANNUITY, PLAN, OR BOND
SHALL NOT BE CONSIDERED TO BE DESCRIBED IN SECTION 403(A), 403(
B), 405( (A), 408(A), 408(B), OR 409, AS THE CASE MAY BE, UNLESS
IT SATISIFIES THE REQUIREMENTS OF SUBPARAGRAPH (A) OR SUBPARAGRAPH
(B) OF PARAGRAPH (1), WHICHEVER IS APPROPRIATE, AND HAS NOT BEEN
DISQUALIFIED UNDER SUBSECTION (G). IN THE CASE OF AN ANNUITY
CONTRACT DESCRIBED IN SECTION 403(B), THE PRECEDING SENTENCE SHALL
APPLY ONLY TO THE PORTION OF THE ANNUITY CONTRACT WHICH EXCEEDS
THE LIMITATION OF SUBSECTION (B) OR THE LIMITATION OF SUBSECTION
(C), WHICHEVER IS APPROPRIATE, AND THE AMOUNT OF THE CONTRIBUTION
FOR SUCH PORTION SHALL REDUCE THE EXCLUSION ALLOWANCE AS PROVIDED
IN SECTION 403 (B) (2).
"(B) LIMITATION FOR DEFINED BENEFIT PLANS.--,
"(1) IN GENERAL.--BENEFITS WITH RESPECT TO A PARTICIPANT EXCEED
THE LIMITATION OF THIS SUBSECTION IF, WHEN EXPRESSED AS AN ANNUAL
BENEFIT (WITHIN THE MEANING OF PARAGRAPH (2)), SUCH ANNUAL BENEFIT
IS GREATER THAN THE LESSER OF--,
"(A) $75,000, OR
"(B) 100 PERCENT OF THE PARTICIPAN'S AVERAGE COMPENSATION FOR
HIS HIGH 3 YEARS.
"(2) ANNUAL BENEFIT.--,
"(A) IN GENERAL.--FOR PURPOSES OF PARAGRAPH (1), THE TERM
'ANNUAL BENEFIT' MEANS A BENEFIT PAYABLE ANNUALLY IN THE FORM OF A
STRAIGHT LIFE ANNUITY (WITH NO ANCILLARY BENEFITS) UNDER A PLAN TO
WHICH EMPLOYEES DO NOT CONTRIBUTE AND UNDER WHICH NO ROLLOVER
CONTRIBUTIONS (AS DEFINED IN SECTIONS 402 (A) (5), 403(A) (4),
408(D) (3), AND 409(B) (3) (C) //ANTE, PP. 968, 969.// ARE MADE.
"(B) ADJUSTMENT FOR CERTAIN OTHER FORMS OF BENEFIT.--IF THE
BENEFIT UNDER THE PLAN IS PAYABLE IN ANY FORM OTHER THAN THE FORM
DESCRIBED IN SUBPARAGRAPH (A), OR IF THE EMPLOYEES CONTRIBUTE TO
THE PLAN OR MAKE ROLLOVER CONTRIBUTIONS (AS DEFINED IN SECTIONS
402(A) (5), 403(A) (4), 408(D) (3) AND 409 (B) (3) (C)), THE
DETERMINATIONS AS TO WHETHER THE LIMITATION DESCRIBED IN PARAGRAPH
(1) HAS BEEN SATISFIED SHALL BE MADE, IN ACCORDANCE WITH
REGULATIONS PRESCRIBED BY THE SECRETARY OR HIS DELEGATE, BY
ADJUSTING SUCH BENEFIT SO THAT IT IS EQUIVALENT TO THE BENEFIT
DESCRIBED IN SUBPARAGRAPH (A). FOR PURPOSES OF THIS SUBPARAGRAPH,
ANY ANCILLARY BENEFIT WHICH IS NOT DIRECTLY RELATED TO RETIREMENT
INCOME BENEFITS SHALL NOT BE TAKEN INTO ACCOUNT; AND THAT PORTION
OF ANY JOINT AND SURVIVOR ANNUITY WHICH CONSTITUTES A QUALIFIED
JOINT AND SURVIVOR ANNUITY (AS DEFINED IN SECTION 401(A) (11) (H)
(III)) //ANTE, P. 935.// SHALL NOT BE TAKEN INTO ACCOUNT.
"(C) ADJUSTMENT TO $75,000 LIMIT WHERE BENEFIT BEGINS BEFORE
AGE 55.--IF THE RETIREMENT INCOME BENEFIT UNDER THE PLAN BEGINS
BEFORE AGE 55, THE DETERMINATION AS TO WHETHER THE $75,000
LIMITATION SET FORTH IN PARAGRAPH (1) (A) HAS BEEN SATISFIED SHALL
BE MADE, IN ACCORDANCE WITH REGULATIONS PRESCRIBED BY THE
SECRETARY OR HIS DELEGATE, BY ADJUSTING SUCH BENEFIT SO THAT IT IS
EQUIVALENT TO SUCH A BENEFIT BEGINNING AT AGE 55.
"(3) AVERAGE COMPENSATION FOR HIGH 3 YEARS.--FOR PURPOSES OF
PARAGRAPH (1), A PARTICIPANT'S HIGH 3 YEARS SHALL BE THE PERIOD OF
CONSECUTIVE CALENDAR YEARS (NOT MORE THAN 3) DURING WHICH THE
PARTICIPANT BOTH WAS AN ACTIVE PARTICIPANT IN THE PLAN AND HAD THE
GREATEST AGGREGATE COMPENSATION FROM THE EMPLOYER. IN THE CASE OF
AN EMPLOYEE WITHIN THE MEANING OF SECTION 401(C) (1), //26 USC
401.// THE PRECEDING SENTENCE SHALL BE APPLIED BY SUBSTITUTING FOR
'COMPENSATION FROM THE EMPLOYER' THE FOLLOWING: 'THE
PARTICIPANT'S EARNED INCOME (WITHIN THE MEANING OF SECTION 401(C)
(2) BUT DETERMINED WITHOUT REGARD TO ANY EXCLUSION UNDER SECTION
911)',
"(4) TOTAL ANNUAL BENEFITS NOT IN EXCESS OF $10,000.--
NOTWITHSTANDING THE PRECEDING PROVISIONS OF THIS SUBSECTION, THE
BENEFITS PAYABLE WITH RESPECT TO A PARTICIPANT UNDER ANY DEFINED
BENEFIT PLAN SHALL BE DEEMED NOT TO EXCEED THELIMITATION OF THIS
SUBSECTION IF--,
"(A) THE RETIREMENT BENEFITS PAYABLE WITH RESPECT TO SUCH
PARTICIPANT UNDER SUCH PLAN AND UNDER ALL OTHER DEFINED BENEFIT
PLANS OF THE EMPLOYER DO NOT EXCEED $10,000 FOR THE PLAN YEAR, OR
FOR ANY PRIOR PLAN YEAR, AND
"(B) THE EMPLOYER HAS NOT AT ANY TIME MAINTAINED A DEFINED
CONTRIBUTION PLAN IN WHICH THE PARTICIPANT PARTICIPATED.
"(5) REDUCTION FOR SERVICE LESS THAN 10 YEARS.--IN THE CASE OF
AN EMPLOYEE WHO HAS LESS THAN 10 YEARS OF SERVICE WITH THE
EMPLOYER, THE LIMITATION REFERRED TO IN PARAGRAPH (1), AND THE
LIMITATION REFERRED TO IN PARAGRAPH (4), SHALL BE THE LIMITATION
DETERMINED UNDER SUCH PARAGRAPH (WITHOUT REGARD TO THIS
PARAGRAPH), MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS
THE NUMBER OF YEARS (OR PART THEREOF) OF SERVICE WITH THE EMPLOYER
AND THE DENOMINATOR OF WHICH IS 10.
"(6) COMPUTATION OF BENEFITS AND CONTRIBUTIONS.--THE
COMPUTATION OF--,
"(A) BENEFITS UNDER A DEFINED CONTRIBUTION PLAN, FOR PURPOSES
OF SECTION 401(A) (4), //ANTE, P. 938.//
"(B) CONTRIBUTIONS MADE ON BEHALF OF A PARTICIPANT IN A DEFINED
BENEFIT PLAN, FOR PURPOSES OF SECTION 401(A) (4), AND
"(C) CONTRIBUTIONS AND BENEFITS PROVIDED FOR A PARTICIPANT IN A
PLAN DESCRIBED IN SECTION 414(K), //ANTE, P. 925.// FOR PURPOSES
OF THIS SECTION. SHALL NOT BE MADE ON A BASIS INCONSISTENT WITH
REGULATIONS PRESCRIBED BY THE SECRETARY OR HIS DELEGATE.
"(C) LIMITATION FOR DEFINED CONTRIBUTION PLANS.--,
"(1) IN GENERAL.--CONTRIBUTIONS AND OTHER ADDITIONS WITH
RESPECT TO A PARTICIPANT EXCEED THE LIMITATION OF THIS SUBSECTION
IF, WHEN EXPRESSED AS AN ANNUAL ADDITION (WITHIN THE MEANING OF
PARAGRAPH (2) TO THE PARTICIPANT'S ACCOUNT, SUCH ANNUAL ADDITION
IS GREATER THAN THE LESSER OF--,
"(A) $25,000, OR
"(B) 25 PERCENT OF THE PARTICIPANT'S COMPENSATION.
"(2) ANNUAL ADDITION.--FOR PURPOSES OF PARAGRAPH (1), THE TERM
'ANNUAL ADDITION' MEANS THE SUM FOR ANY YEAR OF--,
"(A) EMPLOYER CONTRIBUTIONS,
"(B) THE LESSER OF--
"(I) THE AMOUNT OF THE EMPLOYEE CONTRIBUTIONS IN EXCESS OF 6
PERCENT OF HIS COMPENSATION, OR
"(II) ONE-HALF OF THE EMPLOYEE CONTRIBUTIONS, AND
"(C) FORFEITURES. SUBPARAGRAPH (B) ARE DETERMINED WITHOUT
REGARD TO ANY ROLLOVER CONTRIBUTIONS (AS DEFINED IN SECTIONS 402(
A) (5), 403(A) (4), 408(D) (3), AND 409(B) (3) (C)). //ANTE, PP.
968, 969, 959, 964.//
"(3) PARITCIPANT'S COMPENSATION.-- FOR PURPOSES OF PARAGRAPH
(1), THE TERM 'PARTICIPANT FROM THE EMPLOYER FOR THE YEAR. IN THE
CASE OF AN EMPLOYEE WITHIN THE MEANING OF SECTION 401(C) (1), //26
USC 401.// THE PRECEDING SENTENCE SHALL BE APPLIED BY SUBSTITUTING
FOR 'COMPENSATION OF THE PARTICIPANT FROM THE EMPLOYER' THE
FOLLOWING: 'THE PARTICIPANT'S EARNED INCOME (WITHIN THE MEANING
OF SECTION 401(C) (2) BUT DETERMINED WITHOUT REGARD TO ANY
EXCLUSION UNDER SECTION 911)'.
"(4) SPECIAL ELECTION FOR SECTION 403(B) CONTRACTS PURCHASED BY
EDUCATIONAL INSTITUTIONS, HOSPITALS, AND HOME HEALTH SERVICE
AGENCIES.--,
"(A) IN THE CASE OF AMOUNTS CONTRIBUTED FOR ANY ANNUITY
CONTRACT DESCRIBED IN SECTION 403(B) FOR THE YEAR IN WHICH OCCURS
A PARTICIPANT'S SEPARATION FROM THE SERVICE WITH AN EDUCATIONAL
INSTITUTION, A HOSPITAL, OR A HOME HEALTH SERVICE AGENCY, AT THE
ELECTION OF THE PARTICIPANT THERE IS SUBSTITUTED FOR THE AMOUNT
SPECIFIED IN PARAGRAPH (1) (B) THE AMOUNT OF THE EXCLUSION
ALLOWANCE WHICH WOULD BE DETERMINED UNDER SECTION 403(B) (2)
//POST, P. 986.// (WITHOUT REGARD TO THIS SECTION) FOR THE
PARTICIPANT'S TAXABLE YEAR IN WHICH SUCH SEPARATION OCCURS IF THE
THE PARTICIPANT'S YEARS OF SERVICE WERE COMPUTED ONLY BY TAKING
INTO ACCOUNT HIS SERVICE FOR THE EMPLOYER DURING THE PERIOD OF
YEARS (NOT EXCEEDING TEN) ENDING ON THE DATE OF SUCH SEPARATION.
"(B) IN THE CASE OF AMOUNTS CONTRIBUTED FOR AN ANNUITY CONTRACT
DESCRIBED IN SECTION 403(B) //ANTE, P. 940.// FOR ANY YEAR IN THE
CASE OF A WHO IS AN EMPLOYEE OF AN EDUCATIONAL INSTITUTION, A
HOSPITAL, OR A HOME HEALTH SERVICE AGENCY, AT THE ELECTION OF THE
PARTICIPANT THERE IS SUBSTITUTED FOR THE AMOUNT SPECIFIED IN
PARAGRAPH (1) (B) THE LEAST OF--,
"(I) 25 PERCENT OF THE PARTICIPANT'S INCLUDIBLE COMPENSATION,
(AS DEFINED IN SECTION 403(B) (3)) PLUS $4,000,
"(II) THE AMOUNT OF THE EXCLUSION ALLOWANCE DETERMINED FOR THE
YEAR UNDER SECTION 403(B) (2), OR
"(III) $15,000.
"(C) IN THE CASE OF AMOUNTS CONTRIBUTED FOR AN ANNUITY CONTRACT
DESCRIBED IN SECTION 403(B) FOR ANY YEAR FOR A PARTICIPANT WHO IS
AN EMPLOYEE OF AN EDUCATIONAL INSTITUTION, A HOSPITAL, OR A HOME
HEALTH SERVICE AGENCY, AT THE ELECTION OF THE PARTICIPANT THE
PROVISIONS OF SECTION 403(B) (2) (A) SHALL NOT APPLY.
"(D) (I) THE PROVISIONS OF THIS PARAGRAPH APPLY ONLY IF THE
PARTICIPANT ELECTS ITS APPLICATION AT THE TIME AND IN THE MANNER
PROVIDED UNDER REGULATIONS PRESCRIBED BY THE SECRETARY OR HIS
DELEGATE. NOT MORE THAN ONE ELECTION MAY BE MADE UNDER
SUBPARAGRAPH (A) BY ANY PARTICIPANT. A PARTICIPANT WHO ELECTS TO
HAVE THE PROVISIONS OF SUBPARAGRAPH (A), (B), (C) OF THIS
PARAGRAPH APPLY TO HIM MAY NOT ELECT TO HAVE ANY OTHER
SUBPARAGRAPH OF THIS PARAGRAPH APPLY TO HIM. ANY ELECTION MADE
UNDER THIS PARAGRAPH IS IRREVOCABLE.
"(II) FOR PURPOSES OF THIS PARAGRAPH THE TERM 'EDUCATIONAL
INSTITUTION" MEANS AN EDUCATIONAL INSTITUTION AS DEFINED IN
SECTION 151 (E) (4).
"(III) FOR PURPOSES OF THIS PARAGRAPH THE TERM 'HOME HEALTH
SERVICE AGENCY' MEANS AN ORGANIZATION DESCRIBED IN SUBSECTION 501
(C) (3) WHICH IS EXEMPT FROM TAX UNDER SECTION 501(A) AND WHICH
HAS BEEN DETERMINED BY THE SECRETARY OF HEALTH, EDUCATION, AND
WELFARE TO BE A HOME HEALTH AGENCY (AS DEFINED IN SECTION 1861(0)
OF THE SOCIAL SECURITY ACT). //79 STAT. 313; 86 STAT. 1413.//
"(D) COST-OF-LIVING ADJUSTMENT.--,
"(1) IN GENERAL.--//42 USC 1395X.// THE SECRETARY OR HIS
DELEGATE SHALL ADJUST ANNUALLY--,
"(A) THE $75,000 AMOUNT IN SUBSECTION (B) (1) (A),
"(B) THE $25,000 AMOUNT IN SUBSECTION (C) (1) (A), AND
"(C) IN THE CASE OF A PARTICIPANT WHO IS SEPARATED FROM
SERVICE, THE AMOUNT TAKEN INTO ACCOUNT UNDER SUBSECTION (B) (1)
(B), FOR INCREASE IN THE COST OF LIVING IN ACCORDANCE WITH
REGULATIONS PRESCRIBED BY THE SECRETARY OR HIS DELEGATE. SUCH
REGULATIONS SHALL PROVIDE FOR ADJUSTMENT PROCEDURES WHICH ARE
SIMILAR TO THE PROCEDURES USED TO ADJUST PRIMARY INSURANCE AMOUNTS
UNDER SECTION 215(I) (2) (A) OF THE SOCIAL SECURITY ACT. //42 USC
415.//
"(2) BASE PERIODS.--THE BASE PERIOD TAKEN INTO ACCOUNT--,
"(A) FOR PURPOSES OF SUBPARAGRAPHS (A) AND (B) OF PARAGRAPH (1)
IS THE CALENDAR QUARTER BEGINNING OCTOBER 1, 1974, AND
"(B) FOR PURPOSES OF SUBPARAGRAPH (C) OF PARAGRAPH (1) IS THE
LAST CALENDAR QUARTER OF THE CALENDAR YEAR BEFORE THE CALENDAR
YEAR IN WHICH THE PARTICIPANT IS SEPARATED FROM SERVICE.
"(E) LIMITATION IN CASE OF DEFINED BENEFIT PLAN AND DEFINED
CONTRIBUTION PLAN FOR SAME EMPLOYEE.--,
"(1) IN GENERAL.--IN ANY CASE IN WHICH AN INDIVIDUAL IS A
PARTICIPANT IN BOTH A DEFINED BENEFIT PLAN AND A DEFINED
CONTRIBUTION PLAN MAINTAINED BY THE SAME EMPLOYER, THE SUM OF THE
DEFINED BENEFIT PLAN FRACTION AND THE DEFINED CONTRIBUTION PLAN
FRACTION FOR ANY YEAR MAY NOT EXCEED 1.4.
"(2) DEFINED BENEFIT PLAN FRACTION.--FOR PURPOSES OF THIS
SUBSECTION, THE DEFINED BENEFIT PLAN FRACTION FOR ANY YEAR IS A
FRACTION--,
"(A) THE NUMERATOR OF WHICH IS THE PROJECTED ANNUAL BENEFIT OF
THE PARTICIPANT UNDER THE PLAN (DETERMINED AS OF THE CLOSE OF THE
YEAR), AND
"(B) THE DENOMINATOR OF WHICH IS THE PROJECTED ANNUAL BENEFIT
OF THE PARTICIPANT UNDER THE PLAN (DETERMINED AS OF THE CLOSE OF
THE YEAR) IF THE PLAN PROVIDED THE MAXIMUM BENEFIT ALLOWABLE UNDER
SUBSECTION (B).
"(3) DEFINED CONTRIBUTION PLAN FRACTION.--FOR PURPOSES OF THIS
SUBSECTION, THE DEFINED CONTRIBUTION PLAN FRACTION FOR ANY YEAR IS
A FRACTION--,
"(A) THE NUMERATOR OF WHICH IS THE SUM OF THE ANNUAL ADDITIONS
TO THE PARTICIPANT'S ACCOUNT AS OF THE CLOSE OF THE YEAR, AND
"(B) THE DENOMINATOR OF WHICH IS THE SUM OF THE MAXIMUM AMOUNT
OF ANNUAL ADDITIONS TO SUCH ACCOUNT WHICH COULD HAVE BEEN MADE
UNDER SUBSECTION (C) FOR SUCH YEAR AND FOR EACH PRIOR YEAR UNDER
SUBSECTION (C) FOR SUCH YEAR AND FOR EACH PRIOR YEAR OF SERVICE
WITH THE EMPLOYER.
"(4) SPECIAL TRANSITION RULES FOR DEFINED CONTRIBUTION
FRACTION.--IN APPLYING PARAGRAPH (3) WITH RESPECT TO YEARS
BEGINNING BEFORE JANUARY 1, 1976--,
"(A) THE AGGREGATE AMOUNT TAKEN INTO ACCOUNT UNDER PARAGRAPH
(3) (A) MAY NOT EXCEED THE AGGREGATE AMOUNT TAKEN INTO ACCOUNT
UNDER PARAGRAPH (3) (B), AND
"(B) THE AMOUNT TAKEN INTO ACCOUNT UNDER SUBSECTION (C) (2) (B)
(I) FOR ANY YEAR CONCERNED IS AN AMOUNT EQUAL TO--,
"(I) THE EXCESS OF THE AGGREGATE AMOUNT OF EMPLOYEE
CONTRIBUTIONS FOR ALL YEARS BEGINNING BEFORE JANUARY 1, 1976,
DURING WHICH THE EMPLOYEE WAS AN ACTIVE PARTICIPANT OF THE PLAN,
OVER 10 PERCENT OF THE EMPLOYEE'S AGGREGATE COMPENSATION FOR ALL
SUCH YEARS, MULTIPLIED BY
"(II) A FRACTION THE NUMERATOR OF WHICH IS 1 AND THE
DENOMINATOR OF WHICH IS THE NUMBER OF YEARS BEGINNING BEFORE
JANUARY 1, 1976, DURING WHICH THE EMPLOYEE WAS AN ACTIVE
PARTICIPANT IN THE PLAN. EMPLOYEE CONTRIBUTIONS MADE ON OR AFTER
OCTOBER 2, 1973, SHALL BE TAKEN INTO ACCUNT UNDER SUBPARAGRAPH (B)
OF THE PRECEDING SENTENCE ONLY TO THE EXTENT THAT THE AMOUNT OF
CONTRIBUTIONS DOES NOT EXCEED THE MAXIMUM AMOUNT OF CONTRIBUTIONS
PERMISSIBLE UNDER THE PLAN AS IN EFFECT ON OCTOBER 2, 1973.
"(5) SPECIAL RULES FOR SECTIONS 403(B) AND 408.-- //26 USC
403.// FOR PURPOSES OF THIS SUBSECTION, ANY ANNUITY CONTRACT
DESCRIBED IN SECTION 403 (B) //ANTE, P. 959.// (EXCEPT IN THE CASE
OF A PARTICIPANT WHO HAS ELECTED UNDER SUBSECTION (C) (4) (D) TO
HAVE THE PROVISIONS OF SUBSECTION (C) (4) (C) APPLY, ANY
INDIVIDUAL RETIREMENT ACCOUNT DESCRIBED IN SECTION 408(A), ANY
INDIVIDUAL RETIREMENT ANNUITY DESCRIBED IN AECTION 408(B), AND ANY
RETIREMENT BOND DESCRIBED IN SECTION 409, FOR THE BENEFIT OF A
PARTICIPANT SHALL BE TREATED AS A DEFINED CONTRIBUTION PLAN
MAINTAINED BY EACH EMPLOYER WITH RESPECT TO WHICH THE PARTICIPANT
HAS THE CONTROL REQUIRED UNDER SUBSECTION (B) OR (C) OF SECTION
414 (AS MODIFIED BY SUBSECTION (H)). IN THE CASE OF ANY ANNUITY
CONTRACT DESCRIBED IN SECTION 403(B), THE AMOUNT OF THE
CONTRIBUTION DISQUALIFIED BY REASON OF SUBSECTION (G) SHALL REDUCE
THE EXCLUSION ALLOWANCE AS PROVIDED IN SECTION 403(B) (2).
"(F) COMBINING OF PLANS.--,
"(1) IN GENERAL.--FOR PURPOSES OF APPLYING THE LIMITATIONS OF
SUBSECTIONS (B), (C), AND (E)--,
"(2) ANNUAL COMPENSATION TAKEN INTO ACCOUNT FOR DEFINED BENEFIT
PLANS.--IF THE EMPLOYER HAS MORE THAN ONE DEFINED BENEFIT PLAN--,
"(A) SUBSECTION (B) (1) (B) SHALL BE APPLIED SEPARATELY WITH
RESPECT TO EACH SUCH PLAN, BUT
"(B) IN APPLYING SUBSECTION (B) (1) (B) TO THE AGGREGATE OF
SUCH DEFINED BENEFIT PLANS FOR PURPOSES OF THIS SUBSECTION, THE
HIGH 3 YEARS OF COMPENSATION TAKEN INTO ACCOUNT SHALL BE THE
PERIOD OF CONSECUTIVE CALENDAR YEARS (NOT MORE THAN 3) DURING
WHICH THE INDIVIDUAL HAD THE GREATEST AGGREGATE COMPENSATION FROM
THE EMPLOYER.
"(G) AGGREGATION OF PLANS.--THE SECRETARY OR HIS DELEGATE, IN
APPLYING THE PROVISIONS OF THIS SECTION TO BENEFITS OR CONTRIBUTIONS
UNDER MORE THAN ONE PLAN MAINTAINED BY THE SAME EMPLOYER, AND TO ANY
TRUSTS, CONTRACTS, ACCOUNTS, OR BONDS REFERRED TO IN SUBSECTION (A) (2),
WITH RESPECT TO WHICH THE PARTICIPANT HAS THE CONTROL REQUIRED UNDER
SECTION 414(B) OR (C), AS MODIFIED BY SUBSECTION (H), //ANTE, P. 925.//
SHALL UNDER REGULATIONS PRESCRIBED BY THE SECRETARY OR HIS DELEGATE,
DISQUALIFY ONE OR MORE TRUSTS, PLANS, CONTRACTS, ACCOUNTS, OR BONDS, OR
ANY COMBINATION THEREOF UNTIL SUCH BENEFITS OR CONTRIBUTIONS DO NOT
EXCEED THE LIMITATIONS CONTAINED IN THIS SECTION. IN ADDITION TO TAKING
INTO ACCOUNT SUCH OTHER FACTORS AS MAY BE NECESSARY TO CARRY OUT THE
PURPOSES OF SUBSECTIONS (E) AND (F), THE REGULATIONS PRESCRIBED UNDER
THIS PARAGRAPH SHALL PROVIDE THAT NO PLAN WHICH HAS BEEN TERMINATED
SHALL BE DISQUALIFIED UNTIL ALL OTHER TRUSTS, PLANS, CONTRACTS,
ACCOUNTS, OR BONDS HAVE BEEN DISQUALIFIED.
"(H) 50 PERCENT CONTROL.--FOR PURPOSES OF APPLYING SUBSECTIONS (B)
AND (C) OF SECTION 414 TO THIS SECTION, THE PHRASE (MORE THAN 50
PERCENT' SHALL BE SUBSTITUTED FOR THE PHRASE 'AT LEAST 80 PERCENT' EACH
PLACE IT APPEARS IN SECTION 1563(A) (1).//26 USC 1563.//
"(I) RECORDS NOT AVAILABLE FOR PAST PERIODS.--WHERE FOR THE PERIOD
BEFORE JANUARY 1, 1976, OR (IF LATER) THE FIRST DAY OF THE FIRST PLAN
YEAR OF THE PLAN, THE RECORDS NECESSARY FOR THE APPLICATION OF THIS
SECTION ARE NOT AVAILABLE, THE SECRETARY OR HIS DELEGATE MAY BY
REGULATIONS PRESCRIBE ALTERNATIVE METHODS FOR DETERMINING THE AMOUNTS TO
BE TAKEN INTO ACCOUNT FOR SUCH PERIOD.
"(J) REGULATIONS; DEFINITION OF YEAR.--THE SECRETARY OR HIS DELEGATE
SHALL PRESCRIBE SUCH REGULATIONS AS MAY BE NECESSARY TO CARRY OUT THE
PURPOSES OF THIS SECTION, INCLUDING, BUT NOT LIMITED TO, REGULATIONS
DEFINING THE TERM 'YEAR' FOR PURPOSES OF ANY PROVISION OF THIS SECTION.
"(K) SPECIAL RULES.--,
"(1) DEFINED BENEFIT PLAN AND DEFINED CONTRIBUTION PLAN.-- FOR
PURPOSES OF THIS TITLE, THE TERM 'DEFINED CONTRIBUTION PLAN' OR
'DEFINED BENEFIT PLAN' MEANS A DEFINED CONTRIBUTION PLAN (WITHIN
THE MEANING OF SECTION 414(I)) OR A DEFINED BENEFIT PLAN (WITHIN
THE MEANING OF SECTION 414(J)), WHICHEVER APPLIES, WHICH IS--,
"(A) A PLAN DESCRIBED IN SECTION 401(A) WHICH INCLUDES A TRUST
WHICH IS EXEMPT FROM TAX UNDER SECTION 501(A),
"(B) AN ANNUITY PLAN DESCRIBED IN SECTION 403(A),
"(C) A QUALIFIED BOND PURCHASE PLAN DESCRIBED IN SECTION 405
(A),
"(D) AN ANNUITY CONTRACT DESCRIBED IN SECTION 403(B),
"(E) AN INDIVIDUAL RETIREMENT ACCOUNT DESCRIBED IN SECTION
408(A),
"(F) AN INDIVIDUAL RETIREMENT ANNUITY DESCRIBED IN SECTION
408(B), OR
"(G) AN INDIVIDUAL RETIREMENT BOND DESCRIBED IN SECTION
409.".
(3) SPECIAL RULE FOR CERTAIN PLANS IN EFFECT ON DATE OF
ENACTMENT.--//26 USC 415 NOTE.// IN ANY CASE IN WHICH, ON THE DATE
OF ENACTMENT OF THIS ACT, AN INDIVIDUAL IS A PARTICIPANT IN BOTH A
DEFINED BENEFIT PLAN AND A DEFINED CONTRIBUTION PLAN MAINTAINED BY
THE SAME EMPLOYER, AND THE SUM OF THE DEFINED BENEFIT PLAN
FRACTION AND THE DEFINED CONTRIBUTIONPLAN FRACTION FOR THE YEAR
DURING WHICH SUCH DATE OCCURS EXCEEDS 1.4, THE SUM OF SUCH
FRACTIONS MAY CONTINUE TO EXCEED 1.4 IF--,
(A) THE DEFINED BENEFIT PLAN FRACTION IS NOT INCREASED, BY
AMENDMENT OF THE PLAN OR OTHERWISE, AFTER THE DATE OF ENACTMENT OF
THIS ACT, AND
(B) NO CONTRIBUTIONS ARE MADE UNDER THE DEFINED CONTRIBUTION
PLAN AFTER SUCH DATE. A TRUST WHICH IS PART OF A PENSION,
PROFIT-SHARING, OR STOCK BONUS PLAN DESCRIBEDIN THE PRECEDING
SENTENCE SHALL NOT BE TREATED AS NOT CONSTITUTING A QUALIFIED
TRUST UNDER SECTION 401(A) OF THE INTERNAL REVENUE CODE OF 1954
//26 USC 401.// ON ACCOUNT OF THE PROVISIONS OF SECTION 415(E) OF
SUCH CODE, //ANTE, P. 979.// AS LONG AS IT IS DESCRIBED IN THE
PRECEDING SENTENCE OF THIS SUBSECTION.
(B) LIMIT ON EMPLOYER DEDUCTIONS.--THE SECOND SENTENCE OF SECTION
404(A) (3) (A) //26 USC 404.// (RELATING TO LIMITS ON DEDUCTIBLE
CONTRIBUTIONS) IS AMENDED BY STRIKING OUT "BENEFICIARIES UNDER THE
PLAN." AND INSERTING IN LIEU THEREOF "BENEFICIARIES UNDER THE PLAN, BUT
THE AMOUNT SO DEDUCTIBLE UNDER THIS SENTENCE IN ANY ONE SUCCEEDING
TAXABLE YEAR TOGETHER WITH THE AMOUNT SO DEDUCTIBLE UNDER THE FIRST
SENTENCE OF THIS SUBPARAGRAPH SHALL NOT EXCEED 25 PERCENT OF THE
COMPENSATION OTHERWISE PAID OR ACCRUED DURING SUCH TAXABLE YEAR TO THE
BENEFICIARIES UNDER THE PLAN.".
(C) CERTAIN ANNUITY AND BOND PURCHASE PLANS.--,
(1) SECTION 404(A) (2) (RELATING TO THE GENERAL RULE FOR
DEDUCTION FOR EMPLOYEE ANNUITIES) IS AMENDED BY STRIKING OUT
"(15)" AND INSERTING IN LIEU THEREOF "(15), (16), AND (19)" AND BY
STRIKING OUT "(A) (9) AND (10)" AND INSERTING IN LIEU THEREOF "(A)
(9), (10), (17), AND (18)".
(2) SECTION 405(A) (1) (RELATING TO REQUIREMENTS FOR QUALIFIED
BOND PURCHASE PLANS) IS AMENDED BY STRIKING OUT "AND (8)," AND
INSERTING IN LIEU THEREOF "(8), (16), AND (19)".
(3) SECTION 805(D) (1) (C) (RELATING TO PENSION PLAN RESERVES)
IS AMENDED BY STRIKING OUT "AND (15)" AND INSERTING IN LIEU
THEREOF "(15), (16), AND (19)".
(4) SECTION 403(B) (2) (RELATING TO EXCLUSION ALLOWANCE) IS
AMENDED TO READ AS FOLLOWS:
"(2) EXCLUSION ALLOWANCE.--,
"(A) IN GENERAL.--FOR PURPOSES OF THIS SUBSECTION, THE
EXCLUSION ALLOWANCE FOR ANY EMPLOYEE FOR THE TAXABLE YEAR IS AN
AMOUNT EQUAL TO THE EXCESS, IF ANY, OF--,
"(I) THE AMOUNT DETERMINED BY MULTIPLIED 20 PERCENT OF HIS
INCLUDIBLE COMPENSATION BY THE NUMBER OF YEARS OF SERVICE, OVER
"(II) THE AGGREGATE OF THE AMOUNTS CONTRIBUTED BY THE EMPLOYER
FOR ANNUITY CONTRACTS AND EXCLUDIBLE FROM THE GROSS INCOME OF THE
EMPLOYEE FOR ANY PRIOR TAXABLE YEAR.
"(B) ELECTION TO HAVE ALLOWANCE DETERMINED UNDER SECTION 415
RULES.--IN THE CASE OF AN EMPLOYEE WHO MAKES AN ELECTION UNDER
SECTION 415(C) (4) (D) TO HAVE THE PROVISIONS OF SECTION 415(C)
(4) (C) (RELATING TO SPECIAL RULE FOR SECTION 403(B) CONTRACTS
PURCHASED BY EDUCATIONAL INSTITUTIONS, HOSPITALS, AND HOME HEALTH
SERVICE AGENCIES) APPLY, THE EXCLUSION ALLOWANCE FOR ANY SUCH
EMPLOYEE FOR THE TAXABLE YEAR IS THE AMOUNT WHICH COULD BE
CONTRIBUTED (UNDER SECTION 415) BY HIS EMPLOYER UNDER A PLAN
DESCRIBED IN SECTION 403(A) IF THE ANNUITY CONTRACT FOR THE
BENEFIT OF SUCH EMPLOYEE WERE TREATED AS A DEFINED CONTRIBUTION
PLAN MAINTAINED BY THE EMPLOYER.".
(D) EFFECTIVE DATE.--//26 USC 415 NOTE.//
(1) GENERAL RULE.--THE AMENDMENTS MADE BY THIS SECTION SHALL
APPLY TO YEARS BEGINNING AFTER DECEMBER 31, 1975. THE SECRETARY
OF THE TREASURY SHALL PRESCRIBE SUCH REGULATIONS AS MAY BE
NECESSARY TO CARRY OUT THE PROVISIONS OF THIS PARAGRAPH.
(2) TRANSITION RULE FOR DEFINED BENEFIT PLANS.--IN THE CASE OF
AN INDIVIDUAL WHO WAS AN ACTIVE PARTICIPANT IN A DEFINED BENEFIT
PLAN BEFORE OCTOBER 3, 1973, IF--,
(A) THE ANNUAL BENEFIT (WITHIN THE MEANING OF SECTION 415(B)
(2) OF THE INTERNAL REVENUE CODE OF 1954) //ANTE, P. 979.//
PAYABLE TO SUCH PARTICIPANT ON RETIREMENT DOES NOT EXCEED 100
PERCENT OF HIS ANNUAL RATE OF COMPENSATION ON THE EARLIER OF (I)
OCTOBER 2, 1973, OR (II) THE DATE ON WHICH HE SEPARATED FROM THE
SERVICE OF THE EMPLOYER,
(B) SUCH ANNUAL BENEFIT IS NO GREATER THAN THE ANNUAL BENEFIT
WHICH WOULD HAVE BEEN PAYABLE TO SUCH PARTICIPANT ON RETIREMENT IF
(I) ALL THE TERMS AND CONDITIONS OF SUCH PLAN IN EXISTENCE ON SUCH
DATE HAD REMAINED IN EXISTENCE UNTIL SUCH RETIREMENT, AND (II) HIS
COMPENSATION TAKEN INTO ACCOUNT FOR ANY PERIOD AFTER OCTOBER 2,
1973, HAD NOT EXCEEDED HIS ANNUAL RATE OF COMPENSATION ON SUCH
DATE, AND
(C) IN THE CASE OF A PARTICIPANT WHO SEPARATED FROM THE SERVICE
OF THE EMPLOYER PRIOR TO OCTOBER 2, 1973, SUCH ANNUAL BENEFIT IS
NO GREATER THAN HIS VESTED ACCRUED BENEFIT AS OF THE DATE HE
SEPARATED FROM SERVICE, THEN SUCH ANNUAL BENEFIT SHALL BE TREATED
AS NOT EXCEEDING THE LIMITATION OF SUBSECTION (B) OF SECTION 415
OF THE INTERNAL REVENUE CODE OF 1954.
(A) TREATMENT OF TOTAL DISTRIBUTIONS.--SECTION 402(E) //26 USC 402.//
(RELATING TO CERTAIN PLAN TERMINATIONS) IS AMENDED TO READ AS FOLLOWS:
"(E) TAX ON LUMP SUM DISTRIBUTIONS.--,
(1) IMPOSITION OF SEPARATE TAX ON LUMP SUM DISTRIBUTIONS.--
"(A) SEPARATE TAX.--THERE IS HEREBY IMPOSED A TAX (IN THE
AMOUNT DETERMINED UNDER SUBPARAGRAPH (B) ON THE ORDINARY INCOME
PORTION OF A LUMP SUM DISTRIBUTION.
"(B) AMOUNT OF TAX.--FOR ANY TAXABLE YEAR SHALL BE AN AMOUNT
EQUAL TO THE AMOUNT OF THE INITIAL SEPARATE TAX FOR SUCH TAXABLE
YEAR MULTIPLIED BY A FRACTION, THE NUMERATOR OF WHICH IS THE
ORDINARY INCOME PORTION OF THE LUMP SUM DISTRIBUTION FOR THE
TAXABLE YEAR AND THE DENOMINATOR OF WHICH IS THE TOTAL TAXABLE
AMOUNT OF SUCH DISTRIBUTION FOR SUCH YEAR.
"(C) INITIAL SEPARATE TAX FOR ANY TAXABLE YEAR IS AN AMOUNT
EQUAL TO 10 TIMES THE TAX WHICH WOULD BE IMPOSED BY SUBSECTION (C)
OF SECTION 1 IF THE RECIPIENT WHERE AN INDIVIDUAL REFERRED TO IN
SUCH SUBSECTION AND THE TAXABLE INCOME WERE AN AMOUNT EQUAL TO
ONE-TENTH OF THE EXCESS OF--,
"(I) THE TOTAL TAXABLE AMOUNT OF THE LUMP SUM DISTRIBUTION FOR
THE TAXABLE YEAR, OVER
"(II) THE MINIMUM DISTRIBUTION ALLOWANCE.
"(D) MINIMUM DISTRIBUTION ALLOWANCE.--FOR PURPOSES OF THIS
PARAGRAPH, THE MINIMUM DISTRIBUTION ALLOWANCE FOR THE TAXABLE YEAR
IS AN AMOUNT EQUAL TO--,
"(I) THE LESSER OF $10,000 OR ONE-HALF OF THE TOTAL TAXABLE
AMOUNT OF THE LUMP SUM DISTRIBUTION FOR THE TAXABLE YEAR, REDUCED
(BUT NOT BELOW ZERO) BY
"(II) 20 PERCENT OF THE AMOUNT (IF ANY) BY WHICH SUCH TOTAL
TAXABLE AMOUNT EXCEEDS $20,000.
"(E) LIABILITY FOR TAX.--THE RECIPIENT SHALL BE LIABLE FOR THE
TAX IMPOSED BY THIS PARAGRAPH.
"(2) MULTIPLE DISTRIBUTIONS AND DISTRIBUTIONS OF ANNUITY
CONTRACTS.--IN THE CASE OF ANY RECIPIENT OF A LUMP SUM
DISTRIBUITON FOR THE TAXABLE YEAR WITH RESPECT TO WHOM DURING THE
6 TAXABLE- YEAR- PERIOD ENDING ON THE LAST DAY OF THE TAXABLE YEAR
THERE HAS BEEN ONE OR MORE OTHER LUMP SUM DISTRIBUTIONS AFTER
DECEMBER 31, 1973, OR IF THE DISTRIBUTION (OR ANY PART THEREOF) IS
AN ANNUITY CONTRACT, IN COMPUTING THE TAX IMPOSED BY PARAGRAPH (1)
(A), THE TOTAL TAXABLE AMOUNTS OF ALL SUCH DISTRIBUTIONS DURING
SUCH 6-TAXABLE-YEAR PARIOD SHALL BE AGGREGATED, BUT THE AMOUNT OF
TAX SO COMPUTED SHALL BE REDUCED (BUT NOT BELOW ZERO) BY THE SUM
OF--,
"(A) THE AMOUNT OF THE TAX IMPOSED BY PARAGRAPH (1) (A) PAID
WITH RESPECT TO SUCH OTHER DISTRIBUTIONS, PLUS
"(B) THAT PORTION OF THE TAX ON THE AGGREGATED TOTAL TAXABLE
AMOUNTS WHICH IS ATTRIBUTABLE TO ANNUITY CONTRACTS. FOR PURPOSES
OF THIS PARAGRAPH, A BENEFICIARY OF A TRUST TO WHICH A LUMP SUM
DISTRIBUTION IS MADE SHAL BE TREATED AS THE RECIPIENT OF SUCH
DISTRIBUTION IF THE BENEFICIARY IS AN EMPLOYEE (INCLUDING AN
EMPLOYEE WITHIN THE MEANING OF SECTION 401(C) (1)) //26 USC 401.//
WITH RESPECT TO THE PLAN UNDER WHICH THE DISTRIBUTION IS MADE OR
IF THE BENEFICIARY IS TREATED AS THE OWNER OF SUCH TRUST FOR
PURPOSES OF SUBPART E OF PART I OF SUBCHAPTER J. //26 USC 671.//
IN THE CASE OF THE DISTRIBUTION OF AN ANNUITY CONTRACT, THE
TAXABLE AMOUNT OF SUCH DISTRIBUTION SHALL BE DEEMED TO BE THE
CURRENT ACTUARIAL VALUE OF THE CONTRACT, DETERMINED ON THE DATE OF
SUCH DISTRIBUTION. IN THE CASE OF A LUMP SUM DISTRIBUTION WITH
RESPECT TO ANY INDIVIDUAL WHICH IS MADE ONLY TO TWO OR MORE
TRUSTS, THE TAX IMPOSED BY PARAGRAPH (1) (A) SHALL BE COMPUTED AS
IF SUCH DISTRIBUTION WAS MADE TO A SINGLE TRUST, BUT THE LIABILITY
FOR SUCH TAX SHALL BE APPORTIONED AMONG SUCH TRUSTS ACCORDING TO
THE RELATIVE AMOUNTS RECEIVED BY EACH. THE SECRETARY OR HIS
DELEGATE SHALL PRESCRIBE SUCH REGULATIONS AS MAY BE NECESSARY TO
CARRY OUT THE PURPOSES OF THIS PARAGRAPH.
"(3) ALLOWANCE OF DEDUCTION.--THE ORDINARY INCOME PORTION OF A
LUMP SUM DISTRIBUTION FOR THE TAXABLE YEAR SHALL BE ALLOWED AS A
DEDUCTION FROM GROSS INCOME FOR SUCH TAXABLE YEAR, BUT ONLY TO THE
EXTENT INCLUDED IN THE TAXPAYER'S GROSS INCOME FOR SUCH TAXABLE
YEAR.
"(4) DEFINITIONS AND SPECIAL RULES.--,
"(A) LUMP SUM DISTRIBUTION.--FOR PURPOSES OF THIS SECTION AND
SECTION 403, //26 USC 403.// THE TERM 'LUMP SUM DISTRIBUTION'
MEANS THE DISTRIBUTION OR PAYMENT WITHIN ONE TAXABLE YEAR OF THE
RECIPIENT OF THE BALANCE TO THE CREDIT OF AN EMPLOYEE WHICH
BECOMES PAYABLE TO THE RECIPIENT--,
"(I) ON ACCOUNT OF THE EMPLOYEE'S DEATH,
"(II) AFTER THE EMPLOYEE ATTAINS AGE 59 1/2,
"(III) ON ACCOUNT OF THE EMPLOYEE'S SEPARATION FROM THE
SERVICE, OR
"(IV) AFTER THE EMPLOYEE HAS BECOME DISABLED (WITHIN THE
MEANING OF SECTION 72(M) (7)) //26 USC 72.//
"(B) ELECTION OF LUMP SUM TREATMENT.--FOR PURPOSES OF THIS
SECTION AND SECTION 403, NO AMOUNT WHICH IS NOT AN ANNUITY
CONTRACT MAY BE TREATED AS A LUMP SUM DISTRIBUTION UNDER
SUBPARAGRAPH (A) UNLESS THE TAXPAYER ELECTS FOR THE TAXABLE YEAR
TO HAVE ALL SUCH AMOUNTS RECEIVED DURING SUCH YEAR SO TREATED AT
THE TIME AND IN THE MANNER PROVIDED UNDER REGULATIONS PRESCRIBED
BY THE SECRETARY OR HIS DELEGATE. NOT MORE THAN ONE ELECTION MAY
BE MADE UNDER THIS SUBPARAGRAPH WITH RESPECT TO ANY INDIVIDUAL
AFTER SUCH INDIVIDUAL HAS ATTAINED AGE 59 1/2. NO ELECTION MAY BE
MADE UNDER THIS SUBPARAGRAPH BY ANY TAXPAYER OTHER THAN AN
INDIVIDUAL, AN ESTATE, OR A TRUST. IN THE CASE OF A LUMP SUM
DISTRIBUTION MADE WITH RESPECT TO AN EMPLOYEE TO TWO OR MORE
TRUSTS, THE ELECTION UNDER THIS SUBPARAGRAPH SHALL BE MADE BY THE
PERSONAL REPRESENTATIVE OF THE EMPLOYEE.
"(C) AGGREGATION OF CERTAIN TRUSTS AND PLAN.--FOR PURPOSES OF
DETERMINING THE BALANCE TO THE CREDIT OF AN EMPLOYEE UNDER
SUBPARAGRAPH(A)--,
"(I) ALL TRUSTS WHICH ARE PART OF A PLAN SHALL BE TREATED AS A
SINGLE TRUST, ALL PENSION PLANS MAINTAINED BY THE EMPLOYER SHALL
BE TREATED AS A SINGLE PLAN, ALL PROFIT-SHARING PLANS MAINTAINED
BY THE EMPLOYER SHALL BE TREATED AS A SINGLE PLAN, AND ALL STOCK
BONUS PLANS MAINTAINED BY THE EMPLOYER SHALL BE TREATED AS A
SINGLE PLAN, AND
"(II) TRUSTS WHICH ARE NOT QUALIFIED TRUSTS UNDER SECTION 401
(A) AND ANNUITY CONTRACTS WHICH DO NOT SATISFY THE REQUIREMENTS OF
SECTION 404(A) (2) SHALL NOT BE TAKEN INTO ACCOUNT.
"(D) TOTAL TAXABLE AMOUNT.--FOR PURPOSES OF THIS SECTION AND
SECTION 403, THE TERM 'TOTAL TAXABLE AMOUNT' MEANS, WITH RESPECT
TO A LUMP SUM DISTRIBUTION, THE AMOUNT OF SUCH DISTRIBUTION WHICH
EXCEEDS THE SUM OF--,
"(I) THE AMOUNTS CONSIDERED CONTRIBUTED BY THE EMPLOYEE
(DETERMINED BY APPLYING SECTION 72(F)), WHICH EMPLOYEE
CONTRIBUTIONS SHALL BE REDUCED BY ANY AMOUNTS THERETOFORE
DISTRIBUTED TO HIM WHICH WERE NOT INCLUDIBLE IN GROSS INCOME, AND
"(II) THE NET UNREALIZED APPRECIATION ATTRIBUTABLE TO THAT PART
OF THE DISTRIBUTION WHICH CONSISTS OF THE SECURITIES OF THE
EMPLOYER CORPORATION SO DISTRIBUTED.
"(E) ORDINARY INCOME PORTION.--FOR PURPOSES OF THIS SECTION,
THE TERM 'ORDINARY INCOME PORTION' MEANS, WITH RESPECT TO A LUMP
SUM DISTRIBUTION, SO MUCH OF THE TOTAL TAXABLE AMOUNT OF SUCH
DISTRIBUTION AS IS EQUAL TO THE PRODUCT OF SUCH TOTAL TAXABLE
AMOUNT MULTIPLIED BY A FRACTION--,
"(I) THE NUMERATOR OF WHICH IS THE NUMBER OF CALENDAR YEARS OF
OF ACTIVE PARTICIPATION BY THE EMPLOYEE IN SUCH PLAN AFTER
DECEMBER 31, 1973, AND
"(II) THE DENOMINATOR OF WHICH IS THE NUMBER OF CALENDAR YEARS
OF ACTIVE PARTICIPATION BY THE EMPLOYEE IN SUCH PLAN.
"(F) EMPLOYEE.--FOR PURPOSES OF THIS SUBSECTION AND SUBSECTION
(A) (2), EXCEPT AS OTHERWISE PROVIDED IN SUBPARAGRAPH (A), THE
TERM 'EMPLOYEE' INCLUDES AN INDIVIDUAL WHO IS AN EMPLOYEE WITHIN
THE MEANING OF SECTION 401(C) (1) //26 USC 401.// AND THE EMPLOYER
OF SUCH INDIVIDUAL IS THE PERSON TREATED AS HIS EMPLOYER UNDER
SECTION 401(C) (4).
"(G) COMMUNITY PROPERTY LAWS.--THE PROVISIONS OF THIS
SUBSECTION, OTHER THAN PARAGRAPH (3), SHALL BE APPLIED WITHOUT
REGARD TO COMMUNITY PROPERTY LAWS.
"(H) MINIMUM PERIOD OF SERVICE.--FOR PURPOSES OF THIS
SUBSECTION (BUT NOT FOR PURPOSES OF SUBSECTION (A) (2) OR SECTION
403(A) (2) (A)), NO AMOUNT DISTRIBUTED TO AN EMPLOYEE FROM OR
UNDER A PLAN MAY BE TREATED AS A LUMP SUM DISTRIBUTED UNDER
SUBPARAGRAPH (A) UNLESS HE HAS BEEN A PARTICIPANT IN THE PLAN FOR
5 OR MORE TAXABLE YEARS BEFORE THE TAXABLE YEAR IN WHICH SUCH
AMOUNTS ARE DISTRIBUTED.
"(I) AMOUNTS SUBJECT TO PENALTY.--THIS SUBSECTION SHALL NOT
APPLY TO AMOUNTS DESCRIBED IN CLAUSE (II) OF SUBPARAGRAPH (A) OF
SECTION 72(M) (5) TO THE EXTENT THAT SECTION 72(M) (5) APPLIES TO
SUCH AMOUNTS.
"(J) UNREALIZED APPRECIATION OF EMPLOYER SECURITIES.--IN THE
CASE OF ANY DISTRIBUTION INCLUDING SECURITIES OF THE EMPLOYER
CORPORATION WHICH, WITHOUT REGARD TO THE REQUIREMENT OF
SUBPARAGRAPH (H), WOULD BE TREATED AS A LUMP SUM DISTRIBUTION
UNDER SUBPARAGRAPH (A), THERE SHALL BE EXCLUDED FROM GROSS INCOME
THE NET UNREALIZED APPRECIATION ATTRIBUTABLE TO THAT PART OF THE
DISTRIBUTION WHICH CONSISTS OF SECURITIES OF THE EMPLOYER
CORPORATION SO DISTRIBUTED. IN THE CASE OF ANY SUCH DISTRIBUTION
OR ANY LUMP SUM DISTRIBUTION INCLUDING SECURITIES OF THE EMPLOYER
CORPORATION, THE AMOUNT OF NET UNREALIZED APPRECIATION OF SUCH
SECURITIES AND THE RESULTING ADJUSTMENTS TO THE BASIS OF SUCH
SECURITIES SHALL BE DETERMINED UNDER REGULATIONS PRESCRIBED BY THE
SECRETARY OR HIS DELEGATE.
"(K) SECURITIES.--FOR PURPOSES OF THIS SUBSECTION, THE TERMS
'SECURITIES' AND 'SECURITIES OF THE EMPLOYER CORPORATION' HAVE THE
RESPECTIVE MEANINGS PROVIDED BY SUBSECTION(A) (3)."
(B) PHASEOUT OF CAPITAL GAINS TREATMENT.--,
(1) IN GENERAL.--SECTION 402(A) (2) (RELATING TO CAPITAL GAINS
TREATMENT FOR CERTAIN DISTRIBUTIONS) IS AMENDED TO READ AS
FOLLOWS:
"(2) CAPITAL GAINS TREATMENT FOR PORTION OF LUMP SUM
DISTRIBUTIONS.--IN THE CASE OF AN EMPLOYEE TRUST DESCRIBED IN
SECTION 401(A), WHICH IS EXEMPT FROM TAX UNDER SECTION 501(A), SO
MUCH OF THE TOTAL TAXABLE AMOUNT (AS DEFINED IN SUBPARAGRAPH (D)
OF SUBSECTION (E) (4) OF A LUMP SUM DISTRIBUTION AS IS EQUAL TO
THE PRODUCT OF SUCH TOTAL TAXABLE AMOUNT MULTIPLIED BY A
FRACTION--,
"(A) THE NUMERATOR OF WHICH IS THE NUMBER OF CALENDAR YEARS OF
ACTIVE PARTICIPATION BY THE EMPLOYEE IN SUCH PLAN BEFORE JANUARY
1, 1974, AND
"(B) THE DENOMINATOR OF WHICH IS THE NUMBER OF CALENDAR YEARS
OF ACTIVE PARTICIPATION BY THE EMPLOYEE IN SUCH PLAN, SHALL BE
TREATED AS A GAIN FROM THE SALE OR EXCHANGE OF A CAPITAL ASSET
HELD FOR MORE THAN 6 MONTHS. FOR PURPOSES OF COMPUTING THE
FRACTION DESCRIBED IN THIS PARAGRAPH AND THE FRACTION UNDER
SUBSECTION (E) (4) (E), THE SECRETARY OF HIS DELEGATE MAY
PRESCRIBE REGULATIONS UNDER WHICH PLAN YEARS MAY BE USED IN LIEU
OF CALENDAR YEARS. FOR PURPOSES OF THIS PARAGRAPH, IN THE CASE OF
AN INDIVIDUAL WHO IS AN EMPLOYEE WITHOUT REGARD TO SECTION 401(C)
(1), DETERMINATION OF WHETHER OR NOT ANY DISTRIBUTION IS A LUMP
SUM DISTRIBUTION SHALL BE MADE WITHOUT REFARD TO THE REQUIREMENT
THAT AN ELECTION BE MADE UNDER SUBSECTION (E) (4) (B), BUT NO
DISTRIBUTION TO ANY TAXPAYER OTHER THAN AN INDIVIDUAL, ESTATE, OR
TRUST MAY BE TREATED AS A LUMP SUM DISTRIBUTION UNDER THIS
PARAGRAPH."
(2) AMENDMENT OF SECTION 403.--THAT PART OF PARAGRAPH (2) OF
SECTION 403(A) WHICH FOLLOWS CLAUSE (II) OF SUBPARAGRAPH (A)
THEREOF IS AMENDED TO READ AS FOLLOWS:
"(III) A LUMP SUM DISTRIBUTION (AS DEFINED IN SECTION 402(E)
(4) (A)) //ANTE, P. 987.// IS PAID TO THE RECIPIENT, SO MUCH OF
THE TOTAL TAXABLE AMOUNT (AS DEFINED IN SECTION 402(E) (4) (D)) OF
SUCH DISTRIBUTION AS IS EQUAL TO THE PRODUCT OF SUCH TOTAL TAXABLE
AMOUNT MULTIPLIED BY THE FRACTION DESCRIBED IN SECTION 402(A) (2)
//ANTE, P. 990.// SHALL BE TREATED AS A GAIN FROM THE SALE OR
EXCHANGE OF A CAPITAL ASSET HELD FOR MORE THAN 6 MONTHS. FOR
PURPOSES OF THIS PARAGRAPH, IN THE CASE OF AN INDIVIDUAL WHO IS AN
EMPLOYEE WITHOUT REGARD TO SECTION 401(C) (1), DETERMINATION OF
WHETHER OR NOT ANY DISTRIBUTION IS A LUMP SUM DISTRIBUTION SHALL
BE MADE WITHOUT REGARD TO THE REQUIREMENT THAT AN ELECTION BE MADE
UNDER SUBSECTION (E) (4) (B) OF SECTION 402, BUT NO DISTRIBUTION
TO ANY TAXPAYER OTHER THAN AN INDIVIDUAL, ESTATE, OR TRUST MAY BE
TREATED AS A LUMP SUM DISTRIBUTION UNDER THIS PARAGRAPH.
"(B) CROSS REFERENCE.--,
"FOR IMPOSITION OF SEPARATE TAX ON ORDINARY INCOME PORTION OF LUMP
SUM DISTRIBUTION, SEE SECTION 402(E).".
(C) CONFORMING AMENDMENTS.--,
(1) SUBPARAGRAPH (C) OF SECTION 402(A)(3) IS REPEALED.
(2) PARAGRAPH (5) (AS IN EFFECT ON DECEMBER 31, 1973) OF
SECTION 402(A) IS REPEALED. //26 USC 402.//
(3) SECTION 72 IS AMENDED BY STRIKING OUT SUBSECTION (N)
THEREOF AND BY REDESIGNATING SUBSECTIONS (O) AND (P) AS (N) AND
(O), RESPECTIVELY.
(4) THE SECOND SENTENCE OF SECTION 46(A) (3) AND THE SECOND
SENTENCE OF SECTION 50(A) (3) ARE EACH AMENDED BY INSERTING AFTER
"TAX PREFERENCES)," THE FOLLOWING: "SECTION 402(E) (RELATING TO
TAX ON LUMP SUM DISTRIBUTIONS),".
(5) THE THIRD SENTENCE OF SECTION 901(A) IS AMENDED BY
INSERTING "AGAINST THE TAX IMPOSED BY SECTION 402(E) (RELATING TO
TAX ON LUMP SUM DISTRIBUTIONS)," BEFORE "AGAINST THE TAX IMPOSED
BY SECTION 531".
(6) SUBSECTION 1304(B) (2) (RELATING TO SPECIAL RULES) IS
AMENDED BY STRIKING OUT PARAGRAPH (2) AND BY REDESIGNATING
PARAGRAPHS (3), (4), (5), AND (6) AS PARAGRAPHS (2), (3), (4), AND
(5), RESPECTIVELY.
(7) SUBPARAGRAPH (A) OF SECTION 56(A) (2) AND PARAGRAPH (1) OF
SECTION 56(C) ARE EACH AMENDED BY INSERTING BEFORE "531" THE
FOLLOWING: "402(E),".
(8) SECTIONS 871(B) (1) AND 877(B) //26 USC 871, 877.// ARE
EACH AMENDED BY INSERTING ", 402(E) (1)," AFTER "SECTION 1".
//ANTE P. 987.//
(9) SECTION 62 (DEFINING ADJUSTED GROSS INCOME), IS AMENDED BY
INSERTING AFTER PARAGRAPH (10) THE FOLLOWING NEW PARAGRAPH:
//ANTE, P. 959.//
"(11) CERTAIN PORTION OF LUMP-SUM DISTRIBUTIONS FROM PENSION
PLANS TAXED UNDER SECTION 402(E).--THE DEDUCTION ALLOWED BY
SECTION 402(E) (3)."
(10) SECTION 122(B) (2) (RELATING TO CONSIDERATION FOR THE
CONTRACT) IS AMENDED BY STRIKING OUT "72(O)" AND INSERTING "72(
N)".
(11) SECTION 402(E) (RELATING TO CAPITAL GAINS TREATMENT AND
LIMITATION OF TAX NOT TO APPLY TO BONDS DISTRIBUTED BY TRUSTS) IS
AMENDED BY STRIKING OUT "SECTION 72(N) AND SECTION 402(A) (2)" AND
INSERTING "SUBSECTIONS (A) (2) AND (E) OF SECTION 402".
(12) SECTION 406(C) (RELATING TO TERMINATION OF STATUS AS
DEEMED EMPLOYEE, ETC.) IS AMENDED BY STRIKING OUT "SECTION 72(N),
SECTION 402(A) (2)" AND INSERTING "SECTION 72(N), SECTION 402(A)
(2)" AND INSERTING "SUBSECTIONS (A) (2)" AND (E) OF SECTION 402".
(14) SECTION 1348(B) (1) (RELATING TO EARNED INCOME) IS AMENDED
BY STRIKING OUT "72(N), 402(A) (2)" AND INSERTING "402 (A) (2),
402(E)".
(15) SECTION 101(B) (2) (B) IS AMENDED BY STRIKING OUT "TOTAL
DISTRIBUTIONS PAYABLE (AS DEFINED IN SECTION 402(A) (3)) WHICH ARE
PAID TO A DISTRIBUTEE WITHIN ONE TAXABLE YEAR OF THE DISTRIBUTEE
BY REASON OF THE EMPLOYEE'S DEATH" AND INSERTING IN LIEU THEREOF
"A LUMP SUM DISTRIBUTION (AS DEFINED IN SECTION (E) (4))".
(D) EFFECTIVE DATE.--//26 USC 402 NOTE.// THE AMENDMENTS MADE BY THIS
SECTION SHALL APPLY ONLY WITH RESPECT TO DISTRIBUTIONS OR PAYMENTS MADE
AFTER DECEMBER 31, 1973, IN TAXABLE YEARS BEGINNING AFTER SUCH DATE.
(A) INCLUSION OF CERTAIN CONTRIBUTIONS IN INCOME.--EXCEPT IN THE CASE
OF PLANS OR ARRANGEMENTS IN EXISTENCE ON JUNE 27, 1974, A CONTRIBUTION
MADE BEFORE JANUARY 1, 1977, TO AN EMPLOYEES' TRUST DESCRIBED IN SECTION
401(A), 403(A) OR 405(A) OF INTERNAL REVENUE CODE OF 1954 WHICH IS
EXEMPT FROM TAX UNDER SECTION 401(A) OF SUCH CODE, OR UNDER AN
ARRANGEMENT WHICH, BUT FOR THE FACT THAT IT WAS NOT IN EXISTENCE ON JUNE
27, 1974, WOULD BE AN ARRANGEMENT DESCRIBED IN SUBSECTION (B) (2) OF
THIS SECTION, SHALL BE TREATED AS A CONTRIBUTION MADE BY AN EMPLOYEE IF
THE CONTRIBUTION IS MADE UNDER AN ARRANGEMENT UNDER WHICH THE
CONTRIBUTION WILL BE MADE ONLY IF THE EMPLOYEE ELECTS TO RECEIVE A
REDUCTION IN HIS COMPENSATION OR TO FOREGO AN INCREASE IN HIS
COMPENSATION.
(B) ADMINISTRATION IN THE CASE OF CERTAIN QUALIFIED PENSION OR
PROFIT-SHARING PLANS, ETC., IN EXISTENCE ON JUNE 27, 1974.-- NO SALARY
REDUCTION REGULATIONS MAY BE ISSUED BY THE SECRETARY OF THE TREASURY IN
FINAL FORM BEFORE JANUARY 1, 1977, WITH RESPECT TO AN ARRANGEMENT WHICH
WAS IN EXISTENCE ON JUNE 27, 1974, AND WHICH, ON THAT DATE--,
(1) PROVIDED FOR CONTRIBUTIONS TO AN EMPLOYEES' TRUST DESCRIBED
IN SECTION 401(A), 403(A), OR 405(A) OF THE INTERNAL REVENUE CODE
OF 1954 WHICH IS EXEMPT FROM TAX UNDER SECTION 501( A) OF SUCH
CODE, OR
(2) WAS MAINTAINED AS PART OF AN ARRANGEMENT UNDER WHICH AN
EMPLOYEE WAS PERMITTED TO ELECT TORECEIVE PART OF HIS COMPENSATION
IN ONE OR MORE ALTERNATIVE FORMS IF ONE OF SUCH FORMS RESULTS IN
THE INCLUSION OF AMOUNTS IN INCOME UNDER THE INTERNAL REVENUE CODE
OF 1954.
(C) ADMINISTRATION OF LAW WITH RESPECT TO CERTAIN PLANS.--,
(1) ADMINISTRATION IN THE CASE OF PLANS DESCRIBED IN SUBSECTION
(B).--UNTIL SALARY REDUCTION REGULATIONS HAVE BEEN ISSUED IN FINAL
FORM, THE LAW WITH RESPECT TO PLANS OR ARRANGEMENTS DESCRIBED IN
SUBSECTION (B) SHALL BE ADMINISTERED--,
(A) WITHOUT REGARD TO THE PROPOSED SALARY REDUCTION REGULATIONS
(37 FR 25938) AND WITHOUT REGARD TO ANY OTHER PROPOSED SALARY
REDUCTION REGULATIONS, AND
(B) IN THE MANNER IN WHICH SUCH LAW WAS ADMINISTERED BEFORE
JANUARY 1, 1972.
(2) ADMINISTRATION IN THE CASE OF QUALIFIED PROFIT-SHARING
PLANS.--IN THE CASE OF PLANS OR ARRANGEMENTS DESCRIBED IN
SUBSECTION (B), IN APPLYING THIS SECTION TO THE TAX TREATMENT OF
CONTRIBUTIONS TO QUALIFIED PROFIT-SHARING PLANS WHERE THE
CONTRIBUTED AMOUNTS ARE DISTRIBUTABLE ONLY AFTER A PERIOD OF
DEFERRAL, THE LAW SHALL BE ADMINISTERED IN A MANNER CONSISTENT
WITH--,
LIMITATION ON RETROACTIVITY OF FINAL REGULATIONS.--IN THE CASE OF ANY
SALARY REDUCTION REGULATIONS WHICH BECOME FINAL AFTER DECEMBER 31,
1976--,
(1) FOR PURPOSES OF CHAPTER 1 OF THE INTERNAL REVENUE CODE OF
1954 (RELATING TO NORMAL TAXES AND SURTAXES), SUCH REGULATIONS
//26 USC 1.// SHALL NOT APPLY BEFORE JANUARY 1, 1977; AND
(2) FOR PURPOSES OF CHAPTER 21 OF SUCH CODE //26 USC 3101.//
(RELATING TO FEDERAL INSURANCE CONTRIBUTIONS ACT) AND FOR PURPOSES
OF CHAPTER 24 OF SUCH CODE //26 USC 3401.// (RELATING TO
COLLECTION OF INCOME TAX AT SOURCE ON WAGES), SUCH REGULATIONS
SHALL NOT APPLY BEFORE THE DAY ON WHICH SUCH REGULATIONS ARE
ISSUED IN FINAL FORM.
(E) SALARY REDUCTION REGULATIONS DEFINED.--FOR PURPOSES OF THIS
SECTION, THE TERM "SALARY REDUCTION REGULATIONS" MEANS REGULATIONS
DEALING WITH THE INCLUDIBILITY IN GROSS INCOME (AT THE TIME OF
CONTRIBUTION) OF AMOUNTS CONTRIBUTED TO A PLAN WHICH INCLUDES A TRUST
THAT QUALIFIES UNDER SECTION 401(A), OR A PLAN DESCRIBED IN SECTION
403(A) //26 USC 401.// OR 405(A), INCLUDING PLANS OR ARRANGEMENTS
DESCRIBED IN SUBSECTION (B) (2), IF THE CONTRIBUTION IS MADE UNDER AN
ARRANGEMENT UNDER WHICH THE CONTRIBUTION WILL BE MADE ONLY IF THE
EMPLOYEE ELECTS TO RECEIVE A REDUCTION IN HIS COMPENSATION OR TO FOREGO
AN INCREASE IN HIS COMPENSATION, OR UNDER AN ARRANGEMENT UNDER WHICH THE
EMPLOYEE IS PERMITTED TO ELECT TO RECEIVE PART OF HIS COMPENSATION IN
ONE OR MORE ALTERNATIVE FORMS (IF ONE OF SUCH FORMS RESULTS IN THE
INCLUSION OF AMOUNTS IN INCOME UNDER THE INTERNAL REVENUE CODE OF 1954).
//26 USC 1 ET SEQ.//
(A) TREATMENT OF CERTAIN PARTICIPANTS IN THE PLAN.--SECTION 404(C)
//26 USC 404.// (RELATING TO CERTAIN NEGOTIATED PLANS) IS AMENDED BY
INSERTING AFTER THE FIRST SENTENCE THE FOLLOWING: "FOR PURPOSES OF THIS
CHAPTER AND SUBTITLE B, IN THE CASE OF ANY INDIVIDUAL WHO BEFORE JULY 1,
1974, WAS A PARTICIPANT IN A PLAN DESCRIBED IN THE PRECEDING SENTENCE--,
"(A) SUCH INDIVIDUAL, IF HE IS OR WAS AN EMPLOYEE WITHIN THE
MEANING OF SECTION 401(C) (1), //26 USC 401.// SHALL BE TREATED
(WITH RESPECT TO SERVICE COVERED BY THE PLAN) AS BEING AN EMPLOYEE
OTHER THAN AN EMPLOYEE WITHIN THE MEANING OF SECTION 401(C) (1)
AND AS BEING AN EMPLOYEE OF A PARTICIPATING EMPLOYER UNDER THE
PLAN,
"(B) EARNINGS DERIVED FROM SERVICE COVERED BY THE PLAN SHALL BE
TREATED AS NOT BEING EARNED INCOME WITHIN THE MEANING OF SECTION
401(C) (2), AND
"(C) SUCH INDIVIDUAL SHALL BE TREATED AS AN EMPLOYEE OF A
PARTICIPATING EMPLOYER UNDER THE PLAN WITH RESPECT TO SERVICE
BEFORE JULY 1, 1975, COVERED BY THE PLAN. SECTION 277 (RELATING
TO DEDUCTIONS INCURRED BY CERTAIN MEMBERSHIP ORGANIZATIONS IN
TRANSACTIONS WITH MEMBERS) DOES NOT APPLY TO ANY TRUST DESCRIBED
IN THIS SUBSECTION.".
(B) OTHER AMENDMENTS TO SECTION 401(C) (1).--,
(1) PARAGRAPH (1) OF THE FIRST SENTENCE OF SECTION 401(C) IS
AMENDED BY STRIKING OUT "AND PENSIONS" AND INSERTING IN LIEU
THEREOF "OR PENSIONS".
(2) THE LAST SENTENCE OF SECTION 404(C) IS AMENDED BY STRIKING
OUT "THIS SUBSECTION" AND INSERTING IN LIEU THEREOF "THE FIRST AND
THIRD SENTENCES OF THIS SUBSECTION".
(C) EFFECTIVE DATE.--//26 USC 404 NOTE.// THE AMENDMENTS MADE BY THIS
SECTION SHALL APPLY TO TAXABLE YEARS ENDING ON OR AFTER JUNE 30, 1972.
(A) IN GENERAL.--SECTION 122(A) (RELATING TO CERTAIN REDUCED
UNIFORMED SERVICES RETIRED PAY) IS AMENDED TO READ AS FOLLOWS:
"(A) GENERAL RULE.--IN THE CASE OF A MEMBER OR FORMER MEMBER OF THE
UNIFORMED SERVICES OF THE UNITED STATES, GORSS INCOME DOES NOT INCLUDE
THE AMOUNT OF ANY REDUCTION IN HIS RETIRED OR RETAINER PAY PURSUANT TO
THE PROVISIONS OF CHAPTER 73 OF TITLE 10, UNITED STATES CODE.". //10
USC 1431.//
(B) TECHNICAL AMENDMENTS.--,
(1) SECTION 122(B) (2) IS AMENDED BY STRIKING OUT "SECTION
1438" IN SUBPARAGRAPH (B) AND INSERTING IN LIEU THEREOF "SECTION
1438 OR 1452(D)".
(2) SECTION 72(O) //ANTE, P. 991.// IS AMENDED BY INSERTING
AFTER "PLAN" IN THE HEADING OF SUCH SECTION "OR SURVIVOR BENEFIT
PLAN".
(3) SECTION 101(B) (2) (D) IS AMENDED BY STRIKING OUT "IF THE
INDIVIDUAL WHO MADE THE ELECTION UNDER SUCH CHAPTER" AND INSERTING
IN LIEU THEREOF "IF THE MEMBER OR FORMER MEMBER OF THE UNIFORMED
SERVICES BY REASON OF WHOSE DEATH SUCH ANNUITY IS PAYABLE".
(4) SECTION 2039(C) IS AMENDED BY STRIKING OUT "SECTION 1438"
IN THE LAST SENTENCE AND INSERTING IN LIEU THEREOF "SECTION 1438
OR 1452(D)".
(C) EFFECTIVE DATES.-- //26 USC 122 NOTE.// THE AMENDMENTS MADE BY
THIS SECTION APPLY TO TAXABLE YEARS ENDING ON OR AFTER SEPTEMBER 21,
1972. THE AMENDMENTS MADE BY PARAGRAPHS (3) AND (4) OF SUBSECTION (B)
APPLY WITH RESPECT TO INDIVIDUALS DYING ON OR AFTER SUCH DATE.
PUBLIC LAW 93-406, 88 STAT 829 EMPLOYEE RETIREMENT INCOME SECURITY
ACT OF 1974. (TITLE I)
BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE
UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED,
SECTION 1. THIS ACT MAY CITED AS "EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974". (TABLES OMITTED ON PAGES 1, 2, 3, 4,)
SEC. 2. (A) THE CONGRESS FINDS THAT THE GROWTH IN SIZE, SCOPE, AND
NUMBERS OF EMPLOYEE BENEFIT PLANS IN RECENT YEARS HAS BEEN RAPID AND
SUBSTANTIAL; THAT THE OPERATIONAL SCOPE AND ECONOMIC IMPACT OF SUCH
PLANS IS INCREASINGLY INTERSTATE; THAT THE CONTINUED WELL-BEING AND
SECURITY OF MILLIONS OF EMPLOYEES AND THEIR DEPENDENTS ARE DIRECTLY
AFFECTED BY THESE PLANS; THAT THEY ARE AFFECTED WITH A NATIONAL PUBLIC
INTEREST; THAT THEY HAVE BECOMEAN IMPORTANT FACTOR AFFECTING THE
STABILITY OF EMPLOYMENT AND THE SUCCESSFUL DEVELOPMENT OF INDUSTRIAL
RELATIONS; THAT THEY HAVE BECOME AN IMPORTANT FACTOR IN COMMERCE
BECAUSE OF THE INTERSTATE CHARACTER OF THEIR ACTIVITIES, AND OF THE
ACTIVITIES OF THEIR PARTICIPANTS, AND THE EMPLOYERS, EMPLOYEE
ORGANIZATIONS, AND OTHER ENTITIES BY WHICH THEY ARE ESTABLISHED OR
MAINTAINED; THAT A LARGE VOLUME OF THE ACTIVITIES OF SUCH PLANS IS
CARRIED ON BY MEANS OF THE MAILS AND INSTRUMENTALITIES OF INTERSTATE
COMMERCE; THAT OWING TO THE LACK OF EMPLOYEE INFORMATION AND ADEQUATE
SAFEGUARDS CONCERNING THEIR OPERATION, IT IS DESIRABLE IN THE INTERESTS
OF EMPLOYEES AND THEIR BENEFICIARIES, AND TO PROVIDE FOR THE GENERAL
WELFARE AND THE FREE FLOW OF COMMERCE, THAT DISCLOSURE BE MADE AND
SAFEGUARDS BE PROVIDED WITH RESPECT TO THE ESTABLISHMENT, OPERATION, AND
ADMINISTRATION OF SUCH PLANS; THAT THEY SUBSTANTIALLY AFFECT THE
REVENUES OF THE UNITED STATES BECAUSE THEY ARE AFFORDED PREFERENTIAL
FEDERAL TAX TREATMENT; THAT DESPITE THE ENORMOUS GROWTH IN SUCH PLANS
MANY EMPLOYEES WITH LONG YEARS OF EMPLOYMENT ARE LOSING ANTICIPATED
RETIREMENT BENEFITS OWING TO THE LACK OF VESTING PROVISIONS IN SUCH
PLANS; THAT OWING TO THE INADEQUACY OF CURRENT MINIMUM STANDARDS, THE
SOUNDNESS AND STABILITY OF PLANS WITH RESPECT TO ADEQUATE FUNDS TO PAY
PROMISED BENEFITS MAY BE ENDANGERED; THAT OWING TO THE TERMINATION OF
PLANS BEFORE REQUISITE FUNDS HAVE BEEN ACCUMULATED, EMPLOYEES AND THEIR
BENEFICIARIES HAVE BEEN DEPRIVED OF ANTICIPATED BENEFITS; AND THAT IT
IS THEREFORE DESIRABLE IN THE INTERESTS OF EMPLOYEES AND THEIR
BENEFICIARIES, FOR THE PROTECTION OF THE REVENUE OF THE UNITED STATES,
AND TO PROVIDE FOR THE FREE FLOW OF COMMERCE, THAT MINIMUM STANDARDS BE
PROVIDED ASSURING THE EQUITABLE CHARACTER OF SUCH PLANS AND THEIR
FINANCIAL SOUNDNESS.
(B) IT IS HEREBY DECLARED TO BE THE POLICY OF THIS ACT TO PROTECT
INTERSTATE COMMERCE AND THE INTERESTS OF PARTICIPANTS IN EMPLOYEE
BENEFIT PLANS AND THEIR BENEFICIARIES, BY REQUIRING THE DISCLOSURE AND
REPORTING TO PARTICIPANTS AND BENEFICIARIES OF FINANCIAL AND OTHER
INFORMATION WITH RESPECT THERETO, BY ESTABLISHING STANDARDS OF CONDUCT,
RESPONSIBILITY, AND OBLIGATION FOR FIDUCIARIES OF EMPLOYEE BENEFIT
PLANS, AND BY PROVIDING FOR APPROPRIATE REMEDIES, SANCTIONS, AND READY
ACCESS TO THE FEDERAL COURTS.
(C) IT IS HEREBY FURTHER DECLARED TO BE THE POLICY OF THIS ACT TO
PROTECT INTERSTATE COMMERCE, THE FEDERAL TAXING POWER, AND THE INTERESTS
OF PARTICIPANTS IN PRIVATE PENSION PLANS AND THEIR BENEFICIARIES BY
IMPROVING THE EQUITABLE CHARACTER AND THE SOUNDNESS OF SUCH PLANS BY
REQUIRING THEM TO VEST THE ACCRUED BENEFITS OF EMPLOYEES WITH
SIGNIFICANT PERIODS OF SERVICE, TO MEET MINIMUM STANDARDS OF FUNDING,
AND BY REQUIRING PLAN TERMINATION INSURANCE.
SEC. 3. FOR PURPOSES OF THIS TITLE:
(1) THE TERMS "EMPLOYEE WELFARE BENEFIT PLAN" AND WELFARE PLAN" MEAN
ANY PLAN, FUND, OR PROGRAM WHICH WAS HERETOFORE OR IS HEREINAFTER
ESTABLISHED OR MAINTAINED BY AN EMPLOYEROR BY AN EMPLOYEE ORGANIZATION,
OR BY BOTH, TO THE EXTENT THAT SUCH PLAN, FUND, OR PROGRAM WAS
ESTABLISHED OR IS MAINTAINED FOR THE PURPOSE OF PROVIDING FOR ITS
PARTICIPANTS OR THEIR BENEFICIARIES, THROUGH THE PURCHASE OF INSURANCE
OR OTHERWISE, (A) MEDICAL, SURGICAL, OR HOSPITAL CARE OR BENEFITS, OR
BENEFITS IN THE EVENT OF SICKNESS, ACCIDENT, DISABILITY, DEATH OR
UNEMPLOYMENT, OR VACATION BENEFITS, APPRENTICESHIP OR OTHER TRAINING
PROGRAMS, OR DAY CARE CENTERS, SCHOLARSHIP FUNDS, OR PREPAID LEGAL
SERVICES, OR (B) ANY BENEFIT DESCRIBED IN SECTION 302(C) OF THE LABOR
MANAGEMENT RELATIONS ACT, 1974 (OTHER THAN PENSIONS ON RETIREMENT OR
DEATH, AND INSURANCE TO PROVIDE SUCH PENSIONS). //29 USC 186.//
(2) THE TERMS "EMPLOYEE PENSION BENEFIT PLAN" AND "PENSION PLAN" MEAN
ANY PLAN, FUND, OR PROGRAM WHICH WAS HERETOFORE OR IS HEREAFTER
ESTABLISHED OR MAINTAINED BY AN EMPLOYEROR BY AN EMPLOYEE ORGANIZATION,
OR BY BOTH, TO THE EXTENT THAT BY ITS EXPRESS TERMS OR AS A RESULT OF
SURROUNDING CIRCUMSTANCES SUCH PLAN, FUND, OR PROGRAM--,
(A) PROVIDES RETIREMENT INCOME TO EMPLOYEES, OR
(B) RESULTS IN A DEFERRAL OF INCOME BY EMPLOYEES FOR PERIODS
EXTENDING TO THE TERMINATION OF COVERED EMPLOYMENT OR BEYOND,
REGARDLESS OF THE METHOD OF CALCULATION THE CONTRIBUTIONS MADE TO THE
PLAN, THE METHOD OF CALCULATING THE BENEFITS UNDER THE PLAN OR THE
METHOD OF DISTRIBUTING BENEFITS FROM THE PLAN.
(3) THE TERM "EMPLOYEE BENEFIT PLAN" OR "PLAN" MEANS AN EMPLOYEE
WELFARE BENEFIT PLAN OR AN EMPLOYEE PENSION BENEFIT PLAN OR A PLAN WHICH
IS BOTH AN EMPLOYEE WELFARE BENEFIT PLAN AND AN EMPLOYEE PENSION BENEFIT
PLAN.
(4) THE TERM "EMPLOYEE ORGANIZATION" MEANS ANY LABOR UNION OR ANY
ORGANIZATION OF ANY KIND, OR ANY AGENCY OR EMPLOYEE REPRESENTATION
COMMITTEE, ASSOCIATION, GROUP, OR PLAN, IN WHICH EMPLOYEES PARTICIPATE,
AND WHICH EXISTS FOR THE PURPOSE, IN WHOLE OR IN PART, OF DEALING WITH
EMPLOYERS CONCERNING AN EMPLOYEE BENEFIT PLAN, OR OTHER MATTERS
INCIDENTAL TO EMPLOYMENT RELATIONSHIPS; OR ANY EMPLOYEES' BENEFICIARY
ASSOCIATION ORGANIZED FOR THE PURPOSE IN WHOLE OR IN PART, OF
ESTABLISHING SUCH A PLAN.
(5) THE TERM "EMPLOYER" MEANS ANY PERSON ACTING DIRECTLY AS AN
EMPLOYER, OR INDIRECTLY IN THE INTEREST OF AN EMPLOYER, IN RELATION TO
AN EMPLOYEE BENEFIT PLAN; AND INCLUDES A GROUP OR ASSOCIATION OF
EMPLOYERS ACTING FOR AN EMPLOYER IN SUCH CAPACITY.
(6) THE TERM "IMPLOYEE" MEANS ANY INDIVIDUAL EMPLOYED BY AN AN
EMPLOYER.
(7) THE TERM "PARTICIPANT" MEANS ANY EMPLOYEE OR FORMER EMPLOYEE OF
AN EMPLOYER, OR ANY MEMBER OR FORMER MEMBER OF AN EMPLOYEE ORGANIZATION,
WHO IS OR MAY BECOME ELIGIBLE TO RECEIVE A BENEFIT OF ANY TYPE FROM AN
EMPLOYEE BENEFIT PLAN WHICH COVERS EMPLOYEES OF SUCH EMPLOYER OR MEMBERS
OF SUCH ORGANIZATION, OR WHOSE BENEFICIARIES MAY BE ELIGIBLE TO RECEIVE
ANY SUCH BENEFIT.
(8) THE TERM "BENEFICIARY" MEANS A PERSON DESIGNATED BY A
PARTICIPANT, OR BY THE TERMS OF AN EMPLOYEE BENEFIT PLAN, WHO IS OR MAY
BECOME ENTITLED TO A BENEFIT THEREUNDER.
(9) THE TERM "PERSON" MEANS AN INDIVIDUAL, PARTNERSHIP, JOINT
VENTURE, CORPROATION, MUTUAL COMPANY, JOINT-STOCK COMPANY, TRUST,
ESTATE, UNINCORPORATED ORGANIZATION, ASSOCIATION, OR EMPLOYEE
ORGANIZATION.
(10) THE TERM "STATE" INCLUDES ANY STATE OF THE UNITED STATES, THE
DISTRICT OF COLUMBIA, PUERTO RICO, THE VIRGIN ISLANDS, AMERICAN SAMOA,
GUAM, WAKE ISLAND, AND THE CANAL ZONE. THE TERM "UNITED STATES" WHEN
USED IN THE GEOGRAPHIC SENSE MEANS THE STATES AND THE OUTER CONTINENTAL
SHELF LANDS DEFINED IN THE OUTER CONTINENTAL SHELF LANDS ACT (43 U.S.C.
1331 - 1343). //67 STAT. 462.//
(11) THE TERM "COMMERCE" MEANS TRADE, TRAFFIC, COMMERCE,
TRANSPORTATION, OR COMMUNICATION BETWEEN ANY STATE AND ANY PLACE OUTSIDE
THEREOF.
(12) THE TERM " INDUSTRY OR ACTIVITY AFFECTING COMMERCE" MEANS ANY
ACTIVITY, BUSINESS, OR INDUSTRY IN COMMERCE OR IN WHICH A LABOR DISPUTE
WOULD HINDER OR OBSTRUCT COMMERCE OR THE FREE FLOW OF COMMERCE, AND
INCLUDES ANY ACTIVITY OR INDUSTRY "AFFECTING COMMERCE" WITHIN THE
MEANING OF THE LABOR MANAGEMENT RELATIONS ACT, 1947, //29 USC 141.// OR
THE RAILWAY LABOR ACT. //45 USC 151.//
(13) THE TERM "SECRETARY" MEANS THE SECRETARY OF LABOR.
(14) THE TERM "PARTY IN INTEREST" MEANS, AS TO AN EMPLOYEE BENEFIT
PLAN--,
(A) ANY FIDUCIARY (INCLUDING, BUT NOT LIMITED TO, ANY
ADMINISTRATOR, OFFICER, TRUSTEE, OR CUSTODIAN), COUNSEL, OR
EMPLOYEE OF SUCH EMPLOYEE BENEFIT PLAN;
(B) A PERSON PROVIDING SERVICES TO SUCH PLAN;
(C) AN EMPLOYER ANY OF WHOSE EMPLOYEES ARE COVERED BY SUCH
PLAN;
(D) AN EMPLOYEE ORGANIZATION ANY OF WHOSE MEMBERS ARE COVERED
BY SUCH PLAN;
(E) AN OWNER, DIRECT OR INDIRECT, OF 50 PERCENT OR MORE OF--,
(I) THE COMBINED VOTING POWER OF ALL CLASSES OF STOCK ENTITLED
TO VOTE OR THE TOTAL VALUE OF SHARES OF ALL CLASSES OF STOCK OF A
CORPORATION.
(II) THE CAPITAL INTEREST OR THE PROFITS INTEREST OR A
PARTNERSHIP, OR
(III) THE BENEFICIAL INTEREST OF A TRUST UNINCORPORATED
ENETERPRISE,
WHICH IS AN EMPLOYER OR AN EMPLOYEE ORGANIZATION DESCRIBED IN
SUBPARAGRAPH (C) OR (D);
(F) A RELATIVE (AS DEFINED IN PARAGRAPH (15)) OF ANY INDIVIDUAL
DESCRIBED IN SUBPARAGRAPH (A), (B), (C), OR (E);
(G) A CORPORATION, PARTNERSHIP, OR TRUST OR ESTATE OF WHICH (OR
IN WHICH) 50 PERCENT OR MORE OF--,
(I) THE COMBINED VOTING POWER OF ALL CLASSES OF STOCK ENTITLED
TO VOTE OR THE TOTAL VALUE OF SHARES OF ALL CLASSES OF STOCK OF
SUCH CORPORATION,
(II) THE CAPITAL INTEREST OR PROFITS INTEREST OF SUCH
PARTNERSHIP, OR
(III) THE BENEFICIAL INTEREST OF SUCH TRUST OR ESTATE, IS OWNED
DIRECTLY OR INDIRECTLY, OR HELD BY PERSONS DESCRIBED IN
SUBPARAGRAPH (A), (B), (C), OR (E);
(H) AN EMPLOYEE, OFFICER, DIRECTOR (OR AN INDIVIDUAL HAVING
POWERS OR RESPONSIBILITIES SIMILARTO THOSE OF OFFICERS OR
DIRECTORS), OR A 10 PERCENT OR MORE SHAREHOLDER DIRECTLY OR
INDIRECTLY, OF A PERSON DESCRIBED IN SUBPARAGRAPH (B), (C), (D),
(E), OR (G), OR OF THE EMPLOYEE BENEFIT PLAN; OR
(I) A 10 PERCENT OR MORE (DIRECTLY OR INDIRECTLY IN CAPITAL OR
PROFITS) PARTNER OR JOINT VENTURER OF A PERSON DESCRIBED IN
SUBPARAGRAPH (B), (C), (D), (E), OR (G).
THE SECRETARY, AFTER CONSULTATION AND COORDINATION WITH THE SECRETARY OF
THE TREASURY, MAY BY REGULATION PRESCRIBE A PERCENTAGE LOWER THAN 50
PERCENT FOR SUBPARAGRAPH (E) AND (G) AND LOWER THAN 10 PERCENT FOR
SUBPARAGRAPH (H) OR (I). THE SECRETARY MAY PRESCRIBE REGUALTIONS FOR
DETERMINING THE OWNERSHIP (DIRECT OR INDIRECT) OF PROFITS AND BENEFICIAL
INTERESTS, AND THE MANNER IN WHICH INDIRECT STOCKHOLDINGS ARE TAKEN INTO
ACCOUNT.
(15) THE TERM "RELATIVE" MEANS A SPOUSE, ANCESTOR, LINEAL DESCENDANT,
OR SPOUSE OF A LINEAL DESCENDANT.
(16) (A) THE TERM "ADMINISTRATOR" MEANS--,
(I) THE PERSON SPECIFICALLY SO DESIGNATED BY THE TERMS OF THE
INSTRUMENT UNDER WHICH THE PLAN IS OPERATED;
(II) IF AN ADMINISTRATOR IS NOTSO DESIGNATED, THE PLAN SPONSOR;
AND
(III) IN THE CASE OF A PLAN FOR WHICH AN ADMINISTRATOR IS NOT
DESIGNATED AND A PLAN SPONSOR CANNOT BE IDENTIFIED, SUCH OTHER
PERSON AS THE SECRETARY MAY BY REGULATION PRESCRIBE.
(B) THE TERM "PLAN SPONSOR" MEANS (I) THE EMPLOYER IN THE CASE OF AN
EMPLOYEE BENEFIT PLAN ESTABLISHED OR MAINTAINED BY A SINGLE EMPLOYER,
(II) THE EMPLOYEE ORGANIZATION IN THE CASE OF A PLAN ESTABLISHED OR
MAINTAINED BY AN EMPLOYEE ORGANIZATION, OR (III) IN THE CASE OF A PLAN
ESTABLISHED OR MAINTAINED BY TWO OR MORE EMPLOYERS OR JOINTLY BY ONE OR
MORE EMPLOYERS AND ONE OR MOREEMPLOYEE ORGANIZATIONS, THE ASSOCIATION,
COMMITTEE, JOINT BOARD OF TRUSTEES, OR OTHER SIMILAR GROUP OF
REPRESENTATIVES OF THE PARTIES WHO ESTABLISH OR MAINTAIN THE PLAN.
(17) THE TERM "SEPARATE ACCOUNT" MEANS AN ACCOUNT ESTABLISHED OR
MAINTAINED BY AN INSURANCE COMPANY UNDER WHICH INCOME, GAINS, AND
LOSSES, WHETHER OR NOT REALIZED, FROM ASSETS ALLOCATED TO SUCH ACCOUNT,
ARE, IN ACCORDANCE WITH THE APPLICABLE CONTRACT, CREDITED TO OR CHARGED
AGAINST SUCH ACCOUNT WITHOUT REGARD TO OTHER INCOME, GAINS, OR LOSSES OF
THE INSURANCE COMPANY.
(18) THE TERM "ADEQUATE CONSIDERATION" WHEN USED IN PART 14 OF
SUBTITLE B MEANS (A) IN THE CASE OF A SECURITY FOR WHICH THERE IS A
GENERALLY RECOGNIZED MARKET, EITHER (I) THE PRICE OF THE SECURITY
PREVAILING ON A NATIONAL SECURITIES EXCHANGE WHICH IS REGISTERED UNDER
SECTION 6 OF THE SECURITIES EXCHANGE ACT OF 1934, //15 USC 78F.// OR
(II) IF THE SECURITY IS NOT TRADED ON SUCH A NATIONAL SECURITIES
EXCHANGE, A PRICE NOT LESS FAVORABLE TO THE PLAN THAN THE OFFERING PRICE
FOR THE SECURITY AS ESTABLISHED BY THE CURRENT BID AND ASKED PRICES
QUOTED BY PERSONS INDEPENDENT OF THE ISSUER AND OF ANY PARTY IN
INTEREST; AND (B) IN THE CASE OF AN ASSET OTHER THAN A SECURITY FOR
WHICH THERERIS A GENERALLY RECOGNIZED MARKET, THE FAIR MARKET VALUE OF
THE ASSET AS DETERMINED IN GOOD FAITH BY THE TRUSTEE OR NAMED FIDUACIARY
PURSUANT TO THE TERMS OF THE PLAN AND IN ACCORDANCE WITH REGULATIONS
PROMULGATED BY THE SECRETARY.
(19) THE TERM "NONFORFEITABLE"WHEN USED WITH RESPECT TO A PENSION
BENEFIT OR RIGHT MEANS A CLAIM OBTAINED BY A PARTICIPANT OR HIS
BENEFICIARY TO THAT PART OF AN IMMEDIATE OR DEFERRED BENEFIT UNDER A
PENSION PLAN WHICH ARISES FROM THE PARTICIPANT'S SERVICE, WHICH IS
UNCONDITIONAL, AND WHICH IS LEGALLY ENFORCEABLE AGAINST THE PLAN. FOR
PURPOSES OF THIS PARAGRAPH, A RIGHT TO AN ACCRUED BENEFIT DERIVED FROM
EMPLOYER CONTRIBUTIONS SHALL NOT BE TREATED AS FORFEITABLE MERELY
BECAUSE THE PLAN CONTAINS A PROVISION DESCRIBED IN SECTION 203(A) (3).
//POST, P. 854.//
(20) THE TERM "SECURITY" HAS THE SAME MEANING AS SUCH TERM HAS UNDER
SECTION 2(1) OF THE SECURITIES ACTOF 1933 (15 U.S.C. 77B(1)).
(21) (A) EXCEPT AS OTHERWISE PROVIDED IN SUBPARAGRAPH (B), A PERSON
IS A FIDUCIARY WITH RESPECT TO A PLAN TO THE EXTENT (I) HE EXCERCISES
ANY DISCRETIONARY AUTHORITY OR DISCRETIONARY CONTROL RESPECTING
MANAGEMENT OF SUCH PLAN OR EXERCISES ANY AUTHORITY OR CONTROL RESPECTING
MANAGEMENT OR DISPOSITION OF ITS ASSETS, (II) HE RENDERS INVESTMENT
ADVICE FOR A FEE OR OTHER COMPENSATION, DIRECT OR INDIRECT, WITH RESPECT
TO ANY MONEYS OR OTHER PROPERTY OF SUCH PLAN, OR HAS ANY AUTHORITY OR
RESPONSIBILITY TO DO SO, OR (III) HE HAS ANY DISCRETIONARY AUTHORITY OR
DISCRETIONARY RESPONSIBILITY IN THE ADMINISTRAITON OF SUCH PLAN. SUCH
TERM INCLUDES ANDYPERSON DESIGNATED UNDER SECTION 405(C) (1) (B).
//POST, P. 878.//
(B) IF ANY MONEY OR OTHER PROPERTY OF AN EMPLOYEE BENEFIT PLAN IS
INVESTED IN SECURTITIES ISSUED BY AN INVESTMENT COMPANY REGISTERED UNDER
THE INVESTMENT COMPANY ACT OF 1940, //15 USC 80A - 51.// SUCH INVESTMENT
SHALL NOT BY ITSELF CAUSE SUCH INVESTMENT COMPANY OR SUCH INVESTMENT
COMPANY'S INVESTMENT ADVISER OR PRINCIPAL UNDERWRITER TO BE DEEMED TO BE
A FIDUCIARY OR A PARTY IN INTEREST AS THOSE TERMS ARE DEFINED IN THIS
TITLE, EXCEPT INSOFAR AS SUCH INVESTMENT COMPANY OR ITS INVESTMENT
ADVISER OR PRINCIPAL UNDERWRITER ACTS IN CONNECTION WITH AN EMPLOYEE
BENEFIT PLAN COVERING EMPLOYEES OF THE INVESTMENT COMPANY, THE
INVESTMENT ADVISER, OR ITS PRINCIPAL UNDERWRITER. NOTHING CONTAINED IN
THIS SUBPARAGRAPH SHALL LIMIT THE DURIES IMPOSED ON SUCH INVESTMENT
COMPANY, INVESTMENT ADVISER, OR PRINCIPAL UNDERWRITER BY ANY OTHER LAW.
(22) THE TERM "NORMAL RETIREMENT BENEFIT" MEANS THE GREATER OF THE
EARLY RETIREMENT BENEFIT UNDER THE PLAN, OR THE BENEFIT UNDER THE PLAN
COMMENCING AT NORMAL RETIREMENT AGE. THE NORMAL RETIREMENT BENEFIT
SHALL BE DETERMINED WITHOUT REGARD TO--,
(A) MEDICAL BENEFITS, AND
(B) DISABILITY BENEFITS NOT IN EXCESS OF THE QUALIFIED
DISABILITY BENEFIT.
FOR THE PURPOSES OF THIS PARAGRAPH, A QUALIFIED DISABILITY BENEFIT IS A
DISABILITY BENEFIT PROVIDED BY A PLAN WHICH DOES NOT EXCEED THE BENEFIT
WHICH WOULD BE PROVIDED FOR THE PARTICAPANT IF HE SEPARATED FROM THE
SERVICE AT NORMAL RETIREMENT AGE. FOR PURPOSES OF THIS PARAGRAPH, THE
EARLY RETIREMENT BENEFIT UNDER A PLAN SHALL BE DETERMINED WITHOUT REGARD
TO ANY BENEFIT UNDER THE PLAN WHICH THE SECRETARY OF THE TREASURY FINDS
TO BE A BENEFIT DESCRIBED IN SECTION 204(B) (1) (G). //POST, P. 858.//
(23) THE TERM "ACCRUED BENEFIT" MEANS--,
(A) IN THE CASE OF A DEFINED BENEFIT PLAN, THE INDIVIDUAL'S
ACCRUED BENEFIT DETERMINED UNDER THE PLAN AND, EXCEPT AS PROVIDED
IN SECTION 204(C) (3), //POST, P. 858.// EXPRESSED IN THE FORM OF
AN ANNUAL BENEFIT COMMENCING AT NORMAL RETIREMENT AGE, OR
(B) IN THE CASE OF A PLAN WHICH IS AN INDIVIDUAL ACCOUNT PLAN,
THE BALANCE OF THE INDIVIDUAL'S ACCOUNT.
(24) THE TERM "NORMAL RETIREMENT AGE" MEANS THE EARLIER OF--,
(A) THE TIME A PLAN PARTICIPANT ATTAINS NORMAL RETIREMENT AGE
UNDER THE PLAN, OR
(B) THE LATER OF--,
(I) THE TIME A PLAN PARTICIPANT ATTAINS AGE 65 OR
(II) THE 10TH ANNIVERSARY OF THE TIME A PLAN PARTICIPANT
COMMENCED PARTICIPATION IN THE PLAN.
(25) THE TERM "VESTED LIABILITIES" MEANS THE PRESENT VALUE OF THE
IMMEDIATE OR DEFERRED BENEFITS AVAILABLE AT NORMAL RETIREMENT AGE FOR
PARTICIPANTS AND THEIR BENEFICIARIES WHICH ARE NONFORFEITABLE.
(26) THE TERM "CURRENT VALUE" MEANS FAIR MARKET VALUE WHERE AVAILABLE
AND OTHERWISE THE FAIR VALUE AS DETERMINED IN GOOD FAITH BY A TRUSTEE OR
A NAMED FIDUCIARY (AS DEFINED IN SECTION 402(A) (2)) //POST, P. 875.//
PURSUANT TO THE TERMS OF THE PLAN AND IN ACCORDANCE WITH REGULATIONS OF
THE SECRETARY, ASSUMING AN ORDERLY LIQUIDATION AT THE TIME OF SUCH
DETERMINATION.
(27) THE TERM "PRESENT VALUE", WITH RESPECT TO A LIABILITY, MEANS THE
VALUE ADJUSTED TO REFLECT ANTICIPATED EVENTS. SUCH ADJUSTMENTS SHALL
CONFORM TO SUCH REGULATIONS AS THE SECRETARY OF THE TREASURY MAY
PRESCRIBE.
(28) THE TERM "NORMAL SERVICE COST" OR "NORMAL COST" MEANS THE ANNUAL
COST OF FUTURE PENSION BENEFITS AND ADMINISTRATIVE EXPENSES ASSIGNED,
UNDER AN ACTUARIAL COST METHOD, TO YEARS SUBSEQUENT TO A PARTICULAR
VALUATION DATE OF A PENSION PLAN. THE SECRETARY OF THE TREASURY MAY
PRESCRIBE REGULATIONS TO CARRY OUT THIS PARAGRAPH.
(29) THE TERM "ACCRUED LIABILITY" MEANS THE EXCESS OF THE PRESENT
VALUE, AS OF A PARTICULAR VALUATION DATE OF A PENSION PLAN, OF THE
PROJECTED FUTURE BENEFIT COSTS AND ADMINISTRATIVE EXPENSES FOR ALL PLAN
PARTICIPANTS AND BENEFICIARIES OVER THE PRESENT VALUE OF FUTURE
CONTRIBUTIONS FOR THE NORMAL COST OF ALL APPLICABLE PLAN PARTICIPANTS
AND BENEFICIARIES. THE SECRETARY OF THE TREASURY MAY PRESCRIBE
REGULATIONS TO CARRY OUT THIS PARAGRAPH.
(30) THE TERM "UNFUNDED ACCRUED LIABILITY" MEANS THE EXCESS OF THE
ACCRUED LIABILITY, UNDER AN ACTUARIAL COST METHOD WHICH SO PROVIDES,
OVER THE PRESENT VALUE OF THE ASSETS OF A PENSION PLAN. THE SECRETARY
OF THE TREASURY MAY PRESCRIBE REGULATIONS TO CARRY OUT THIS PARAGRAPH.
(31) THE TERM "ADVANCE FUNDING ACTUARIAL COST METHOD" OR "ACTUARIAL
COST METHOD" MEANS A RECOGNIZED ACTUARIAL TECHNIQUE UTILIZED FOR
ESTABLISHING THE AMOUNT AND INCIDENCE OF THE ANNUAL ACTUARIAL COST OF
PENSION PLAN BENEFITS AND EXPENSES. ACCEPTABLE ACTUARIAL COST METHODS
SHALL INCLUDE THE ACCRUED BENEFIT COST METHOD (UNIT CREDIT METHOD), THE
ENTRY AGE NORMAL COST METHOD, THE ATTAINED AGE NORMAL COST MEHTOD, THE
AGGREGATE COST METHOD, THE ATTAINED AGE NORMAL COST METHOD, AND THE
FROZEN INITIAL LIABILITY COST METHOD. THE TERMINAL FUNDING COST METHOD
AND THE CURRENT FUNDING (PAY-AS-YOU-GO) COST METHOD ARE NOT ACCEPTABLE
ACTUARIAL COST METHODS. THE SECRETARY OF THE TREASURY SHALL ISSUE
REGULATIONS TO FURTHER DEFINE ACCEPTABLE ACTUARIAL COST METHODS.
(32) THE TERM "GOVERNMENTAL PLAN" MEANS A PLAN ESTABLISHED OR
MAINTAINED FOR ITS EMPLOYEES BY THE GOVERNMENT OF THE UNITED STATES, BY
THE GOVERNMENT OF ANY STATE OR POLITICAL SUBDIVISION THEREO, OR BY ANY
AGENCY OR INSTRUMENTALITY OF ANY OF THE FOREGOING. THE TERM
"GOVERNMENTAL PLAN" ALSO INCLUDES ANY PLAN TO WHICH THE RAILROAD
RETIREMENT ACT OF 1935 OR 1937 //45 USC 215 NOTE, 228A.// APPLIES, AND
WHICH IS FINANCED BY CONTRIBUTIONS REQUIRED UNDER THAT ACT AND ANY PLAN
OF AN INTERNATIONAL ORGANIZATION WHICH IS EXEMPT FROM TAXATION UNDER THE
PROVISIONS OF THE INTERNATIONAL ORGANIZATIONS IMMUNITIES ACT (59 STAT.
669). //22 USC 288 NOTE.//
(33) (A) THE TERM "CHURCH PLAN" MEANS(I) A PLAN ESTABLISHED AND
MAINTAINED FOR ITS EMPLOYEES BY A CHURCH OR BY A CONVENTION OR
ASSOCIATION OF CHURCHES WHICH IS EXEMPT FROM TAX UNDER SECTION 501 OF
THE INTERNAL REVENUE CODE OF 1954, //26 USC 501.// OR (II) A PLAN
DESCRIBED IN SUBPARAGRAPH (C).
(B) THE TERM "CHURCH PLAN" (NOTWITHSTANDING THE PROVISIONS OF
SUBPARAGRAPH (A)) DOES NOT INCLUDE A PLAN--,
(I) WHICH IS ESTABLISHED AND MAINTAINED PRIMARILY FOR THE
BENEFIT OF EMPLOYEES (OR THEIR BENEFICIARIES) OF SUCH CHURCH OR
CONVENTION OR ASSOCIATION OF CHURCHES WHO ARE EMPLOYED IN
CONNECTION WITH ONE OR MORE UNRELATED TRADES OR BUSINESSES (WITHIN
THE MEANING OF SECTION 513 OF THE INTERNAL REVENUE CODE OF 1954),
//26 USC 513.// OR
(II) WHICH IS A PLAN MAINTAINED BY MORE THAN ONE EMPLOYER, IF
ONE OR MORE OF THE EMPLOYERS IN THE PLAN IS NOT A CHURCH (OR A
CONVENTION OR ASSOCIATION OF CHURCHES) WHICH IS EXEMPT FROM TAX
UNDER SECTION 501 OF THE INTERNAL REVENUE CODE OF 1954.
(C) NOTWITHSTANDING THE PROVISIONS OF SUBPARAGRAPH (B) (II), A PLAN
IN EXISTENCE OF JANUARY 1, 1974, SHALL BE TREATED AS A "CHURCH PLAN" IF
IT IS ESTABLISHED AND MAINTAINED BY A CHURCH OR CONVENTION OR
ASSOCIATION OF CHURCHES FOR ITS EMPLOYEES AND EMPLOYEES OF ONE OF MORE
AGENCIES OF SUCH CHURCH (OR CONVENTION OR ASSOCIATION) FOR THE EMPLOYEES
OF SUCH CHURCH (OR CONVENTION OR ASSOCIATION) AND THE EMPLOYEES OF ONE
OR MORE AGENCIES OR SUCH CHURCH (OR CONVENTION OR ASSOCIATION), AND IF
SUCH CHURCH (OR CONVENTION OR ASSOCIATION) AND EACH SUCH AGENCY IS
EXEMPT FORM TAX UNDER SECTION 501 OF THE INTERNAL REVENUE CODE OF 1954.
THE FIRST SENTENCE OF THIS SUBPARAGRAPH SHALL NOT APPLY TO ANY PLAN
MAINTAINED FOR EMPLOYEES OF AN AGENCY WITH RESPECT TO WHICH THE PLAN WAS
NOT MAINTAINED ON JANUARY 1, 1974. THE FIRST SENTENCE TO THIS
SUBPARAGRAPH SHALL NOT APPLY WITH RESPECT TO ANY PLAN FOR ANY PLAN YEAR
BEGINNING AFTER DECEMBER 31, 1982.
(34) THE TERM "INDIVIDUAL ACCOUNT PLAN" OR "DEFINED CONTRIBUTION
PLAN" MEANS A PENSION PLAN WHICH PROVIDES FOR AN INDIVIDUAL ACCOUNT FOR
EACH PARTICIPANT AND FOR BENEFITS BASED SOLELY UPON THE AMOUNT
CONTRIBUTED TO THE PARTICIPANT'S ACCOUNT, AND ANY INCOME, EXPENSES,
GAINS AND LOSSES, AND ANY FORFEITURES OF ACCOUNTS OF OTHER PARTICIPANTS
WHICH MAY BE ALLOCATED TO SUCH PARTICIPANT'S ACCOUNT.
(35) THE TERM "DEFINED BENEFIT PLAN" MEANS A PENSION PLAN OTHER THAN
AN INDIVIDUAL ACCOUNT PLAN; EXCEPT THAT A PENSION PLAN WHICH IS NOT AN
INDIVIDUAL ACCOUNT PLAN AND WHICH PROVIDES A BENEFIT DERIVED FROM
EMPLOYER CONTRIBUTIONS WHICH IS BASED PARTLY ON THE BALANCE OF THE
SEPARATE ACCOUNT OF A PARTICIPANT--,
(A) FOR THE PURPOSES OF SECTION 202, //POST, P. 853.// SHALL BE
TREATED AS AN INDIVIDUAL ACCOUNT PLAN, AND
(B) FOR THE PURPOSES OF PARAGRAPH (23) OF THIS SECTION AND
SECTION 204, //POST, P. 858.// SHALL BE TREATED AS AN INDIVIDUAL
ACCOUNT PLAN TO THE EXTENT BENEFITS ARE BASED UPON THE SEPARATE
ACCOUNT OF A PARTICIPANT AND AS A DEFINEDBENEFIT PLAN WITH RESPECT
TO THE REMAINING PORTION OF BENEFITS UNDER THE THE PLAN.
(36) THE TERM "EXCESS BENEFIT PLAN" MEANS A PLAN MAINTAINED BY AN
EMPLOYER SOLELY FOR THE PURPOSE OF PROVIDING BENEFITS FOR CERTAIN
EMPLOYEES IN EXCESS OF THE LIMITATIONS ON CONTRIBUTIONS AND BENEFITS
IMPOSED BY SECTION 415 OF THE INTERNAL REVENUE CODE OF 1954 //POST, P.
979.// ON PLANS TO WHICH THAT SECTION APPLIES, WITHOUT REGARD TO WHETHER
THE PLAN IS FUNDED. TO THE EXTENT THAT A SEPARABLE PART OF A PLAN (AS
DETERMINED BY THE SECRETARY OF LABOR) MAINTAINED BY AN EMPLOYER IS
MAINTAINED FOR SUCH PURPOSE, THAT PART SHALL BE TREATED AS A SEPARATE
PLAN WHICH IS AN EXCESS BENEFIT PLAN.
(37) (A) THE TERM "MULTIEMPLOYER PLAN" MEANS A PLAN--,
(I) TO WHICH MOTE THAN ONE EMPLOYER IS REQUIRED TO
CONTRIBUTE,
(II) WHICH IS MAINTAINED PURSUANT TO ONE OR MORE
COLLECTIVE-BARGAINING AGREEMENTS BETWEEN AN EMPLOYEE ORGANIZATION
AND MORE THAN ONE EMPLOYER,
(III) UNDER WHICH THE AMOUNT OF CONTRIBUTIONS MADE UNDER THE
PLAN FOR A PLAN YEAR BY EACH EMPLOYER MAKING SUCH CONTRIBUTIONS IS
LESS THAN 50 PERCENT OF THE AGGREGATE AMOUNT OF CONTRIBUTIONS MADE
UNDER THE PLAN FOR THAT PLAN YEAR BY ALL EMPLOYERS MAKING SUCH
CONTRIBUTIONS,
(IV) UNDER WHICH BENEFITS ARE PAYABLE WITH RESPECT TO EACH
PARTICIPANT WITHOUT REGARD TO THE CESSATION OF CONTRIBUTIONS BY
THE EMPLOYER WHO HAD EMPLOYED THAT PARTICIPANT EXCEPT TO THE
EXTENT THAT SUCH BENEFITS ACCRUED AS A RESULT OF SERVICE WITH THE
EMPLOYER BEFORE SUCH EMPLOYER WAS REQUIRED TO CONTRIBUTE TO SUCH
PLAN, AND
(V) WHICH SATISFIES SUCH OTHER REQUIREMENTS AS THE SECRETARY
MAY BY REGULATIONS PRESCRIBE.
(B) FOR PURPOSES OF THIS PARAGRAPH--,
(I) IF A PLAN IS A MULTIEMPLOYER PLAN WITHIN THE MEANING OF
SUBPARAGRAPH (A) FOR ANY PLAN YEAR, CLAUSE (III) OF SUBPARAGRAPH
(A) SHALL BE APPLIED BY SUBSTITUTING "75 PERCENT" FOR "50 PERCENT"
FOR EACH SUBSEQUENT PLAN YEAR UNTIL THE FIRST PLAN YEAR FOLLOWING
A PLAN YEAR IN WHICH THE PLAN HAD ONE EMPLOYER WHO MADE
CONTRIBUTIONS OF 75 PERCENT OR MORE OF THE AGGREGATE AMOUNT OF
CONTRIBUTIONS MADE UNDER THE PLAN FOR THAT PLAN YEAR BY ALL
EMPLOYERS MAKING SUCH CONTRIBUTIONS, AND
(II) ALL CORPORATIONS WHICH ARE MEMBERS OF A CONTROLLED GROUP
OF CORPORATIONS (WITHIN THE MEANING OF SECTION 1563(A) OF THE
INTERNAL REVENUE CODE OF 1954, //26 USC 1563.// DETERMINED WITHOUT
REGARD TO SECTION 1563(E)(3)(C) OF SUCH CODE) SHALL BE DEEMED TO
BE ONE EMPLOYER.
(38) THE TERM "INVESTMENT MANAGER" MEANS ANY FIDUCIARY (OTHER THAN A
TRUSTEE OR NAMED FIDUCIARY, AS DEFINED IN SECTION 402(A)(2))-- //POST,
P. 875.//
(A) WHO HAS THE POWER TO MANAGE, ACQUIRE, OR DISPOSE OF ANY
ASSET OF A PLAN;
(B) WHO IS (I) REGISTERED AS AN INVESTMENT ADVISER UNDER THE
INVESTMENT ADVISERS ACT OF 1940; //15 USC 80B - 20.// (II) IS A
BANK, AS DEFINED IN THAT ACT; OR (III) IS AN INSURANCE COMPANY
QUALIFIED TO PERFORM SERVICES DESCRIBED IN SUBPARAGRAPH (A) UNDER
THE LAWS OF MORE THAN ONE STATE; AND
(C) HAS ACKNOWLEDGED IN WRITING THAT HE IS A FIDUCIARY WITH
RESPECT TO THE PLAN.
(39) THE TERMS "PLAN YEAR" AND "FISCAL YEAR OF THE PLAN" MEAN WITH
RESPECT TO A PLAN, CALENDAR, POLICY, OR FISCAL YEAR ON WHICH THE RECORDS
OF THE PLAN ARE KEPT.
SEC. 4. (A) EXCEPT AS PROVIDED IN SUBSECTION (B) AND IN SECTIONS
201, 301, AND 401, //POST, PP. 852, 868, 874.// THIS TITLE SHALL APPLY
TO ANY EMPLOYEE BENEFIT PLAN IF IT IS ESTABLISHED OR MAINTAINED--,
(1) BY ANY EMPLOYER ENGAGED IN COMMERCE OR IN ANY INDUSTRY OR
ACTIVITY AFFECTING COMMERCE; OR
(2) BY ANY EMPLOYEE ORGANIZATION OR ORGANIZATIONS REPRESENTING
EMPLOYEES ENGAGED IN COMMERCE OR IN ANY INDUSTRY OR ACTIVITY
AFFECTING COMMERCE; OR
(3) BY BOTH.
(B) THE PROVISIONS OF THIS TITLE SHALL NOT APPLY TO ANY EMPLOYEE
(1) SUCH PLAN IS A GOVERNMENTAL PLAN (AS DEFINED IN SECTION 3
(32));
(2) SUCH PLAN IS A CHURCH PLAN (AS DEFINED IN SECTION 3 (33))
WITH RESPECT TO WHICH NO ELECTION HAS BEEN MADE UNDER SECTION
410(D) OF THE INTERNAL REVENUE CODE OF 1954; //POST, P. 898.//
(3) SUCH PLAN IS MAINTAINED SOLELY FOR THE PURPOSE OF COMPLYING
WITH APPLICABLE WORKMEN'S COMPENSATION LAWS OR UNEMPLOYMENT
COMPENSATION OR DISABILITY INSURANCE LAWS;
(4) SUCH PLAN IS MAINTAINED OUTSIDE OF THE UNITED STATES
PRIMARILY FOR THE BENEFIT OF PERSONS SUBSTANTIALLY ALL OF WHOM ARE
NONRESIDENT ALIENS; OR
(5) SUCH PLAN IS AN EXCESS BENEFIT PLAN (AS DEFINED IN SECTION
3(36)) AND IS UNFUNDED.
SEC. 101. (A) THE ADMINISTRATOR OF EACH EMPLOYEE BENEFIT PLAN SHALL
CAUSE TO BE FURNISHED IN ACCORDANCE WITH SECTION 104(B) TO EACH
PARTICIPANT COVERED UNDER THE PLAN AND TO EACH BENEFICIARY WHO IS
RECEIVING BENEFITS UNDER THE PLAN--,
(1) A SUMMARY PLAN DESCRIPTION DESCRIBED IN SECTION 102 (A)
(1); AND
(2) THE INFORMATION DESCRIBED IN SECTION 104(B) (3) AND 105 (A)
AND (C)
(B) THE ADMINISTRATOR SHALL, IN ACCORDANCE WITH SECTION 104(A), FILE
WITH THE SECRETARY--,
(1) THE SUMMARY PLAN DESCRIPTION DESCRIBED IN SECTION 102 (A)
(1);
(2) A PLAN DESCRIPTION CONTAINING THE MATTER REQUIRED IN
SECTION 102(B);
(3) MODIFICATIONS AND CHANGES REFERRED TO IN SECTION 102(A)
(2);
(4) THE ANNUAL REPOART CONTAINING THE INFORMATION REQUIRED BY
SECTION 103; AND
(5) TERMINAL AND SUPPLEMENTARY REPORTS AS REQUIRED BY
SUBSECTION (C) OF THIS SECTION.
(C) (1) EACH ADMINISTRATOR OF AN EMPLOYEE PENSION BENEFIT PLAN WHICH
IS WINDING UP ITS AFFAIRS (WITHOUT REGARD TO THE NUMBER OF PARTICIPANTS
REMAINING IN THE PLAN) SHALL, IN ACCORDANCE WITH REGULATIONS PRESCRIBED
BY THE SECRETARY, FILE SUCH TERMINAL REPORTS AS THE SECRETARY MAY
CONSIDER NECESSARY. A COPY OF SUCH REPORT SHALL ALSO BE FILED WITH THE
PENSION BENEFIT GUARANTY CORPORATION.
(2) THE SECRETARY MAY REQUIRE TERMINAL REPORTS TO BE FILED WITH
REGARD TO ANY EMPLOYEE WELFARE BENEFIT PLAN WHICH IS WINDING UP ITS
AFFAIRS IN ACCORDANCE WITH REGULATIONS PROMULGATED BY THE SECRETARY.
(3) THE SECRETARY MAY REQUIRE THAT A PLAN DESCRIBED IN PARAGRAPH (1)
OR (2) FILE A SUPPLEMENTARY OR TERMINAL REPORT WITH THE ANNUAL REPORT IN
THE YEAR SUCH PLAN IS TERMINATED AND THAT A COPY OF SUCH SUPPLEMENTARY
OR TERMINAL REPORT IN THE CASE OF A PLAN DESCRIBED IN PARAGRAPH (1) BE
ALSO FILED WITH THE PENSION BENEFIT GUARANTY CORPORATION.
(D) CROSS REFERENCE.--,
FOR REGULATIONS RELATING TO COORDINATION OF REPORTS TO THE
SECRETARIES OF LABOR AND THE TREASURY, SEE SECTION 3004.
SEC. 102. (A) (1) A SUMMARY PLAN DESCRIPTION OF ANY EMPLOYEE BENEFIT
PLAN SHALL BE FURNISHED TO PARTICIPANTS AND BENEFICIARIES AS PROVIDED IN
SECTION 104(B). THE SUMMARY PLAN DESCRIPTION SHALL INCLUDE THE
INFORMATION DESCRIBED IN SUBSECTION (B), SHALL BE WRITTEN IN A MANNER
CALCULATED TO BE UNDERSTOOD BY THE AVERAGE PLAN PARTICIPANT, AND SHALL
BE SUFFICIENTLY ACCURATE AND COMPREHENSIVE TO REASONABLY APPRISE SUCH
PARTICIPANTS AND BENEFICIARIES OF THEIR RIGHTS AND OBLIGATIONS UNDER THE
PLAN. A SUMMARY OF ANY MATERIAL MODIFICATION IN THE TERMS OF THE PLAN
AND ANY CHANGE IN THE INFORMATION REQUIRED UNDER SUBSECTION (B) SHALL BE
WRITTEN IN A MANNER CALCULATED TO BE UNDERSTOOD BY THE AVERAGE PLAN
PARTICIPANT AND SHALL BE FURNISHED IN ACCORDANCE WITH SECTION 104(B)
(1).
(2) A PLAN DESCRIPTION (CONTAINING THE INFORMATION REQUIRED BY
SUBSECTION (B)) OF ANY EMPLOYEE BENEFIT PLAN SHALL BE PREPARED ON FORMS
PRESCRIBED BY THE SECRETARY, AND SHALL BE FILED WITH THE SECRETARY AS
REQUIRED BY SECTION 104(A) (1). ANY MATERIAL MODIFICATION IN THE TERMS
OF THE PLAN AND ANY CHANGE IN THE INFORMATION DESCRIBED IN SUBSECTION
(B) SHALL BE FILED IN ACCORDANCE WITH SECTION 104(A)(1) (D).
(B) THE PLAN DESCRIPTION AND SUMMARY PLAN DESCRIPTION SHALL CONTAIN
THE FOLLOWING INFORMATION: THE NAME AND TYPE OF ADMINISTRATION OF THE
PLAN; THE NAME AND ADDRESS OF THE PERSON DESIGNATED AS AGENT FOR THE
SERVICE OF LEGAL PROCESS, IF SUGH PERSON IS NOT THE ADMINISTRATOR; THE
NAME AND ADDRESS OF THE ADMINISTRATOR; NAMES, TITLES, AND ADDRESSES OF
ANY TRUSTEE OR TRUSTEES (IF THEY ARE PERSONS DIFFERENT FROM THE
ADMINISTRATOR); A DESCRIPTION OF THE RELEVANT PROVISIONS OF ANY
APPLICABLE COLLECTIVE BARGAINING AGREEMENT; THE PLAN'S REQUIREMENTS
RESPECTING ELIGIBILTY FOR PARTICIPATION AND BENEFITS; A DESCRIPTION OF
THE PROVISIONS PROVIDING FOR NONFORFEITABLE PENSION BENEFITS;
CIRCUMSTANCES WHICH MAY RESULT IN DISQUALIFICATION, INELIGIBILITY, OR
DENIAL OR LOSS OF BENEFITS; THE SOURCE OF FINANCING OF THE PLAN AND THE
IDENTITY OF ANY ORGANIZATION THROUGH WHICH BENEFITS ARE PROVIDED; THE
DATE OF THE END OF THE PLAN YEAR AND WHETHER THE RECORDS OF THE PLAN ARE
KEPT ON A CALENDAR , POLICY, OR FISCAL YEAR BASIS; THE PROCEDURES TO BE
FOLLOWED IN PRESENTING CLAIMS FOR BENEFITS UNDER THE PLAN AND THE
REMEDIES AVAILABLE UNDER THE PLAN FOR THE REDRESS OF CLAIMS WHICH ARE
DENIED IN WHOLE OR IN PART (INCLUDING PROCEDURES REQUIRED UNDER SECTION
503 OF THIS ACT).
SEC. 103. (A) (1) (A) AN ANNUAL REPORT SHALL BE PUBLISHED WITH
RESPECT TO EVERY EMPLOYEE BENEFIT PLAN TO WHICH THIS PART APPLIES. SUCH
REPORT SHALL BE FILED WITH THE SECRETARY IN ACCORDANCE WITH SECTION
104(A), AND SHALL BE MADE AVAILABLE AND FURNISHED TO PARTICIPANTS IN
ACCORDANCE WITH SECTION 104(B).
(B) THE ANNUAL REPORT SHALL INCLUDE THE INFORMATION DESCRIBED IN
SUBSECTION (B) AND (C) AND WHERE APPLICABLE SUBSECTIONS (D) AND (E) AND
SHALL ALSO INCLUDE--,
(I) A FINANCIAL STATEMENT AND OPINION, AS REQUIRED BY PARAGRAPH
(3) OF THIS SUBSECTION, AND
(II) AN ACTUARIAL STATEMENT AND OPINION, AS REQUIRED BY
PARAGRAPH (4) OF THIS SUBSECTION.
(2) IF SOME OR ALL OF THE INFORMATION NECESSARY TO ENABLE THE
ADMINISTRATOR TO COMPLY WITH THE REQUIREMENTS OF THIS TITLE IS
MAINTAINED BY--,
(A) AN INSURANCE CARRIER OR OTHER ORGANIZATION WHICH PROVIDES
SOME OR ALL OF THE BENEFITS UNDER THE PLAN, OR HOLDS ASSETS OF THE
PLAN IN A SEPARATE ACCOUNT,
(B) A BANK OR SIMILAR INSTITUTION WHICH HOLDS SOME OR ALL OF
THE ASSETS OF THE PLAN IN A COMMON OR COLLECTIVE TRUST OR A
SEPARATE TRUST, OR CUSTODIAL ACCOUNT, OR
(C) A PLAN SPONSOR AS DEFINED IN SECTION 3(16) (B), SUCH
CARRIER, ORGANIZATION, BANK, INSTITUTION, OR PLAN SPONSOR SHALL
TRANSMIT AND CERTIFY THE ACCURACY OF SUCH INFORMATION TO THE
ADMINISTRATOR WITHIN 120 DAYS AFTER THE END OF THE PLAN YEAR (OR
SUCH OTHER DATE AS MAY BE PRESCRIBED UNDER REGULATIONS OF THE
SECRETARY).
(3) (A) EXCEPT AS PROVIDED IN SUBPARAGRAPH (C), THE ADMINISTRATOR OF
AN EMPLOYEE BENEFIT PLAN SHALL ENGAGE, ON BEHALF OF ALL PLAN
PARTICIPANTS, AN INDEPENDENT QUALIFIED PUBLIC ACCOUNTANT, WHO SHALL
CONDUCT SUCH AN EXAMINATION OF ANY FINANCIAL STATEMENTS OF THE PLAN, AND
OF OTHER BOOKS AND RECORDS OF THE PLAN, AS THE ACCOUNTANT MAY DEEM
NECESSARY TO ENABLE THE ACCOUNTANT TO FORM AN OPINION AS TO WHETHER THE
FINANCIAL STATEMENTS AND SCHEDULES REQUIRED TO BE INCLUDED IN THE ANNUAL
REPORT BY SUBSECTION (B) OF THIS SECTION ARE PRESENTED FAIRLY IN
CONFORMITY WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES APPLIED ON A
BASIS CONSISTENT WITH THAT OF THE PRECEDING YEAR. SUCH EXAMINATION
SHALL BE CONDUCTED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING
STANDARDS, AND SHALL INVOLVE SUCH TESTS OF THE BOOKS AND RECORDS OF THE
PLAN AS ARE CONSIDERED NECESSARY BY THE INDEPENDENT QUALIFIED PUBLIC
ACCOUNTANT. THE INDEPENDENT QUALIFIED PUBLIC ACCOUNTANT SHALL ALSO
OFFER HIS OPINION AS TO WHETHER THE SEPARATE SCHEDULES SPECIFIED IN
SUBSECTION (B) (3) OF THIS SECTION AND THE SUMMARY MATERIAL REQUIRED IN
SECTION 104(B) (3) PRESENT FAIRLY, AND IN ALL MATERIAL RESPECTS THE
INFORMATION CONTAINED THEREIN WHEN CONSIDERED IN CONJUCTION WITH THE
FINANCIAL STATEMENTS TAKEN AS A WHOLE. THE OPINION BY THE INDEPENDENT
QUALIFIED PUBLIC ACCOUNTANT SHALL BE MADE A PART OF THE ANNUAL REPORT.
IN A CASE WHERE A PLAN IS NOT REQUIRED TO FILE AN ANNUAL REPORT, THE
REQUIREMENTS OF THIS PARAGRAPH SHALL NOT APPLY. IN A CASE WHERE BY
REASON OF SECTION 104(A)(2) A PLAN IS REQUIRED ONLY TO FILE A SIMPLIFIED
ANNUAL REPORT, THE SECRETARY MAY WAIVE THE REQUIREMENTS OF THIS
PARAGRAPH.
(B) IN OFFERING HIS OPINION UNDER THIS SECTION THE ACCOUNTANT MAY
RELY ON THE CORRECTNESS OF ANY ACTUARIALMATTER CERTIFIED TO BY AN
ENROLLED ACTUARY, IF HE SO STATES HIS RELIANCE.
(C) THE OPINION REQUIRED BY SUBPARAGRAPH (A) NEED NOT BE EXPRESSED AS
TO ANY STATEMENTS REQUIRED BY SUBSECTION (B) (3) (G) PREPARED BY A BANK
OR SIMILAR INSTITUTION OR INSURANCE CARRIER REGULATED AND SUPERVISED AND
SUBJECT TO PERIODIC EXAMINATION BY A STATE OR FEDERAL AGENCY IF SUCH
STATEMENTS ARECERTIFIED BY THE BANK, SIMILAR INSTITUTION, OR INSURANCE
CARRIER AS ACCURATE AND ARE MADE A PART OF THE ANNUAL REPORT.
(D) FOR PURPOSES OF THIS TITLE, THE TERM "QUALIFIED PUBLIC
ACCOUNTANT" MEANS--,
(I) A PERSON WHO IS A CERTIFIED PUBLIC ACCOUNTANT, CERTIFIED BY
A REGULATORY AUTHORITY OF A STATE;
(II) A PERSON WHO IS A LICENSED PUBLIC ACCOUNTANT, LICENSED BY
A REGULATORY AUTHORITY OF A STATE; OR
(III) A PERSON CERTIFIED BY THE SECRETARY AS A QUALIFIED PUBLIC
ACCOUNTANT IN ACCORDANCE WITH REGULATIONS PUBLISHED BY HIM FOR A
PERSON WHO PARCTICES IN STATES WHERE THERE IS NO CERTIFICATION OR
LICENSING PROCEDURE FOR ACCOUNTANTS.
(4) (A) THE ANDINISTRATOR OF AN EMPLOYEE PENSION BENEFIT PLAN SUBJECT
TO THE REPORTING REQUIREMENT OF SUBSECTION (D) OF THIS SECTION SHALL
ENGAGE, ON BEHALF OF ALL PLAN PARTICIPANTS, AN ENROLLED ACTUARY WHO
SHALL BE RESPONSIBLE FOR THE PREPARATION OF THE MATERIAL COMPRISING THE
ACTUARIAL STATEMENT REQUIRED UNDER SUBSECTION (D) OF THIS SECTION. IN A
CASE WHERE A PLAN IS NOT REQUIRED TO FILE AN ANNUAL REPORT, THE
REQUIREMENT OF THIS PARAGRAPH SHALL NOT APPLY, AND, IN A CASE WHERE BY
REASON OF SECTION 104(A) (2), A PLAN IS REQUIRED ONLY TO FILE A
SIMPLIFIED REPORT, THE SECRETARY MAY WAIVE THE REQUIREMENT OF THIS
PARAGRAPH.
(B) THE ENROLLED ACTUARY SHALL UTILIZE SUCH ASSUMPTIONS AND
TECHNIQUES AS ARE NECESSARY TO ENABLE HIM TO FORM AN OPINION AS TO
WHETHER THE CONTENTS OF THE MATTERS REPORTED UNDER SUBSECTION (D) OF
THIS SECTION--,
(I) ARE IN THE AGGREGATE REASONABLY RELATED TO THE EXPERIENCE
OF THE PLAN AND TO REASONABLE EXPECTATIONS; AND
(II) REPRESENT HIS BEST ESTIMATE OF ANTICIPATED EXPERIENCE
UNDER THE PLAN.
THE OPINION BY THE ENROLLED ACTUARY SHALL BE MADE WITH RESPECT TO, AND
SHALL BE MADE A PART OF, EACH ANNUAL REPORT.
(C) FOR PURPOSES OF THIS TITLE, THE TERM "ENROLLED ACTUARY" MEANS AN
ACTUARY ENROLLED UNDER SUBTITLE C OF TITLE III OF THIS ACT. //POST, P.
1002.//
(D) IN MAKING A CERTIFICATION UNDER THIS SECTION THE ENROLLED ACTUARY
MAY RELY ON THE CORRECTNESS OF ANY ACCOUNTING MATTER UNDER SECTION
103(B) AS TO WHICH ANY QUALIFIED PUBLIC ACCOUNTANT HAS EXPRESSED AN
OPINION, IF HE SO STATES HIS RELIANCE.
(B) AN ANNUAL REPORT UNDER THIS SECTION SHALL INCLUDE A FINANCIAL
STATEMENT CONTAINING THE FOLLOWING INFORMATION :
(1) WITH RESPECT TO AN EMPLOYEE WELFARE BENEFIT PLAN: A STATEMENT OF
ASSETS AND LIABILITIES; A STATEMENT OF CHANGES IN FUND BALANCE; AND A
STATEMENT OF CHANGES IN FINANCIAL POSITION. IN THE NOTES TO FINANCIAL
STATEMENTS, DISCLOSURES CONCERNING THE FOLLOWING ITEMS SHALL BE
CONSIDERED BY THE ACCOUNTANT: A DESCRIPTION OF THE PLAN INCLUDING ANY
SIGNIFICANT CHANGES IN THE PLAN MADE DURING THE PERIOD AND THE IMPACT OF
SUCH CHANGES ON BENEFITS; A DESCRIPTION OF MATERIAL LEASE COMMITMENTS,
OTHER COMMITMENTS, AND CONTINGENT LIABILITIES; A DESCRIPTION OF
AGREEMENTS AND TRANSACTIONS WITH PERSONS KNOWN TO BE PARTIES IN
INTEREST; A GENERAL DESCRIPTION OF PRIORITIES UPON TERMINATION OF THE
PLAN; INFORMATION CONCERNING WHETHER OR NOT A TAX RULING OR
DETERMINATION LETTER HAS BEEN OBTAINED; AND ANY OTHER MATTERS NECESSARY
TO FULLY AND FAIRLY PRESENT THE FINANCIAL STATEMENTS OF THE PLAN.
(2) WITH RESPECT TO AN EMPLOYEE PENSION BENEFIT PLAN: A STATEMENT OF
ASSETS AND LIABILITIES, AND A STATEMENT OF CHANGES IN NET ASSETS
AVAILABLE FOR PLAN BENEFITS WHICH SHALL INCLUDE DETAILS OF REVENUES AND
EXPENSES AND OTHER CHANGES AGGREGATED BYGENERAL SOURCE AND APPLICATION.
IN THE NOTES TO FINANCIAL STATEMENTS, DISCLOSURES CONCERNING THE
FOLLOWING ITEMS SHALL BE CONSIDERED BY THE ACCOUNTANT: A DESCRIPTION OF
THE PLAN INCLUDING ANY SIGNIFICANT CHANGES IN THE PLAN MADE DURING THE
PERIOD AND THE IMPACT OF SUCH CHANGES ON BENEFITS; THE FUNDING POLICY
(INCLUDING POLICY WITH RESPECT TO PRIOR SERVICE COST), AND ANY CHANGES
IN SUCH POLICIES DURING THE YEAR; A DESCRIPTION OF ANY SIGNIFICANT
CHANGES IN PLAN BENEFITS MADE DURING THE PERIOD; A DESCRIPTION OF
MATERIAL LEASE COMMITMENTS, OTHER COMMITMENTS, AND CONTINGENT
LIABILITIES, A DESCRIPTION OF AGREEMENTS AND TRANSACTIONS WITH PERSONS
KNOWN TO BE PARTIES IN INTEREST; A GENERAL DESCRIPTION OF PRIORITIES
UPON TERMINATION OF THE PLAN; INFORMATION CONCERNING WHETHER OR NOT A
TAX RULING OR DETERMINATION LETTER HAS BEEN OBTAINED; AND ANY OTHER
MATTERS NECESSARY TO FULLY AND FAIRLY PRESENT THE FINANCIAL STATEMENTS
OF SUCH PENSION PLAN.
(3) WITH RESPECT TO ALL EMPLOYEE BENEFIT PLANS, THE STATEMENT
REQUIRED UNDER PARAGRAPH (1) OR (2) SHALL HAVE ATTACHED THE FOLLOWING
INFORMATION IN SEPARATE SCHEDULES:
(A) A STATEMENT OF THE ASSETS AND LIABILITIES OF THE PLAN
AGGREGATED BY CATEGORIES AND VALUED AT THEIR CURRENT VALUE, AND
THE SAME DATA DISPLAYED IN COMPARATIVE FORM FOR THE END OF THE
PREVIOUS FISCAL YEAR OF THE PLAN;
(B) A STATEMENT OF RECEIPTS AND DISBURSEMENTS DURING THE
PRECEDING TWELVE-MONTH PERIOD AGGREGATED BY GENERAL SOURCES AND
APPLICATIONS;
(C) A SCHEDULE OF ALL ASSETS HELD FOR INVESTMENT PURPOSES
AGGREGATED AND IDENTIFIED BY ISSURE, BORROWER, OR LESSOR, OR
SIMILAR PARTY TO THE TRANSACTION (INCLUDING A NOTATION AS TO
WHETHER SUCH PARTY IS KNOWN TO BE A PARTY IN INTEREST), MATURITY
DATE, RATE OF INTEREST, COLLATERAL, PAR OR MATURITY VALUE, COST,
AND CURRENT VALUE;
(D) A SCHEDULE OF EACH TRANSACTION INVOLVING A PERSON KNOWN TO
BE PARTY IN INTEREST, THE IDENTITY OF SUCH PARTY IN INTEREST AND
HIS RELATIONSHIP OR THAT OF ANY OTHER PARTY IN INTEREST TO THE
PLAN, A DESCRIPTION OF EACH ASSET TO WHICH THE TRANSACTION
RELATES; THE PURCHASE OR SELLING PRICE IN CASE OF A SALE OR
PURCHASE, THE RENTAL IN CASE OF A LEASE, OR THE INTEREST RATE AND
MATURITY DATE IN CASE OF A LOAN; EXPENSES INCURRED IN CONNECTION
WITH THE TRANSACTION; THE COST OF THE ASSET, THE CURRENT VALUE OF
THE ASSET, AND THE NET GAIN (OR LOSS) ON EACH TRANSACTION;
(E) A SCHEDULE OF ALL LOANS OR FIXED INCOME OBLIGATIONS WHICH
WERE IN DEFAULT AS OF THE CLOSE OF THE PLAN'S FISCAL YEAR OR WERE
CLASSIFIED DURING THE YEAR AS UNCOLLECTABLE AND THE FOLLOWING
INFORMATION WITH RESPECT TO EACH LOAN ON SUCH SCHEDULE (INCLUDING
A NOTATION AS TO WHETHER PARTIES INVOLVED ARE KNOWN TO BE PARTIES
IN INTEREST): THE ORIGINAL PRINCIPAL AMOUNT OF THE LOAN, THE
AMOUNT OF PRINCIPAL AND INTEREST RECEIVEDDURING THE REPORTING
YEAR, THE UNPAID BALANCE, THE IDENTITY AND ADDRESS OF THE OBLIGOR,
A DETAILED DESCRIPTION OF THE LOAN (INCLUDING DATE OF MAKING AND
MATURITY, INTEREST RATE, THE TYPE AND VALUE OF COLLATERAL, AND
OTHER MATERIAL TERMS), THE AMOUNT OF PRINCIPAL AND INTEREST
OVERDUE (IF ANY) AND AN EXPLANATION THEREOF;
(F) A LIST OF ALL LEASES WHICH WERE IN DEFAULT OR WERE
CLASSIFIED DURING THE YEAR AS UNCOLLECTABLE; AND THE FOLLOWING
INFORMATION WITH RESPECT TO EACH LEASE ON SUCH SCHEDULE (INCLUDING
A NOTATION AS TO WHETHER PARTIES INVOLVED ARE KNOWN TO BE PARTIES
IN INTEREST): THE TPE OF PROPERTY LEASED (AND, IN THE CASE OF
FIXED ASSETS SUCH AS LAND, BUILDINGS, LEASEHOLD, AND SO FORTH, THE
LOCATION OF THE PROPERTY), THE IDENTITY OF THE LESSOR OR LESSEE
FROM OR TO WHOM THE PLAN IS LEASING, THE RELATIONSHIP OF SUCH
LESSORS AND LESSEES, IF ANY, TO THE PLAN, THE EMPLOYER, EMPLOYEE
ORGANIZATION, OR ANY OTHER PARTY IN INTEREST, THE TERMS OF THE
LEASE REGARDING RENT, TAXES, INSURANCE, REPAIRS, EXPENSES, AND
RENEWAL OPTIONS; THE DATE THE LEASED PROPERTY WAS PURCHASED AND
ITS COST, THE DATE THE PROPERTY WAS LEASED AND ITS APPROXIMATE
VALUE AT SUCH DATE, THE GROSS RENTAL RECEIPTS DURING THE REPORTING
PERIOD, THE NET RECEIPTS FROM THE LEASE, THE AMOUNTS IN ARREARS,
AND A STATEMENT AS TO WHAT STEPS HAVE BEEN TAKEN TO COLLECT
AMOUNTS DUE OR OTHERWISE REMEDY THE DEFAULT;
(G) ID SOME OR ALL OF THE ASSETS OF A PLAN OR PLANS ARE HELD IN
A COMMON OR COLLECTIVE TRUST MAINTAINED BY A BANK OR SIMILAR
INSTITUTION OR IN A SEPARATE ACCOUNT MAINTAINED BY AN INSURANCE
CARRIER OR A SEPARATE TRUST MAINTAINED BY A BANK AS TRUSTEE, THE
REPORT SHALL INCLUDE THE MOST RECENT ANNUAL STATEMENT OF ASSETS
AND LIABILITIES OF SUCH COMMON OR COLLECTIVE TRUST, AND IN THE
CASE OF A SEPARATE ACCOUNT OR A SEPARATE TRUST, SUCH OTHER
INFORMATION AS IS REQUIRED BY THE ADMINISTRATOR IN ORDER TO COMPLY
WITH THIS SUBSECTION; AND
(H) A SCHEDULE OF EACH REPORTABLE TRANSACTION, THE NAME OF EACH
PARTY TO THE TRANSACTION (EXCEPT THAT, IN THE CASE OF AN
ACQUISITION OR SALE OF A SECURITY ON THE MARKET, THE REPORT NEED
NOT IDENTIFY THE PERSON FROM WHOM THE SECURITY WAS ACQUIRED OR TO
WHOM IT WAS SOLD) AND A DESCRIPTION OF EACH ASSET TO WHICH THE
TRANSACTION APPLIES; THE PURCHASE OR SELLING PRICE IN CASE OF A
SALE OR PURCHASE, THE RENTAL IN CASE OF A LEASE, OR THE INTEREST
RATE AND MAUTRITY DATE IN CASE OF A LOAN; EXPENSES INCURRED IN
CONNECTION WITH THE TRANSACTION; THE COST OF THE ASSET, THE
CURRENT VALUE OF THE ASSET, AND THE NET GAIN (OR LOSS) ON EACH
TRANSACTION. FOR PURPOSES OF THE PRECEDING SENTENCE, THE TERM
"REPORTABLE TRANSACTION" MEANS A TRANSACTION TO WHICH THE PLAN IS
A PARTY IF SUCH TRANSACTION IS--,
(I) A TRANSACTION INVOLVING AN AMOUNT IN EXCESS OF 3 PERCENT OF
THE CURRENT VALUE OF THE ASSETS OF THE PLAN;
(II) ANY TRANSACTION (OTHER THAN A TRANSACTION RESPECTING A
SECURITY) WHICH IS PART OF A SERIES OF TRANSACTIONS WITH OR IN
CONJUNCTION WITH A PERSON IN A PLAN YEAR, IF THE AGGREGATE AMOUNT
OF SUCH TRANSACTIONS EXCEEDS 3 PERCENT OF THE CURRENT VALUE OF THE
PLAN;
(III) A TRANSACTION WHICH IS PART OF A SERIES OF TRANSACTIONS
RESPECTING ONE OR MORE SECURITIES OF THE SAME ISSUER, IF THE
AGGREGATE AMOUNT OF SUCH TRANSACTIONS IN THE PLAN YEAR EXCEEDS 3
PERCENT OF THE CURRENT VALUE OF THE ASSETS OF THE PLAN; OR
(IV) A TRANSACTION WITH OR IN CONJUNCTION WITH A PERSON
RESPECTING A SECURITY, IF ANY OTHER TRANSACTION WITH OR IN
CONJUNCTION WITH SUCH PERSON IN THE PLAN YEAR RESPECTING A
SECURITY IS REQUIRED TO BE REPORTED BY REASON OF CLAUSE (I).
(4) THE SECRETARY MAY, BY REGULATION, RELIEVE ANY PLAN FROM FILING A
COPY OF A STATEMENT OF ASSETS AND LIABILITIES (OR OTHER INFORMATION)
DESCRIBED IN PARAGRAPH (3) (G) IF SUCH STATEMENT AND OTHER INFORMATION
IS FILED WITH THE SECRETARY BY THE BANK OR INSURANCE CARRIER WHICH
MAINTAINS THE COMMON OR COLLECTIVE TRUST OR SEPARATE ACCOUNT.
(C) THE ADMINISTRATOR SHALL FURNISH AS A PART OF A REPORT UNDER THIS
SECTION THE FOLLOWING INFORMATION:
(1) THE NUMBER OF EMPLOYEES COVERED BY THE PLAN.
(2) THE NAME AND ADDRESS OF EACH FIDUCIARY.
(3) EXCEPT IN THE CASE OF A PERSON WHOSE COMPENSATION IS
MINIMAL (DETERMINED UNDER REGULATIONS OF THE SECRETARY) AND WHO
PERFORMS SOLELY MINISTERIAL DUTIES (DETERMINED UNDER SUCH
REGULATIONS), THE NAME OF EACH PERSON (INCLUDING BUT NOT LIMITED
TO, ANY CONSULTANT, BROKER, TRUSTEE, ACCOUNTANT, INSURANCE
CARRIER, ACTUARY, ADMINISTRATOR, INVESTMENT MANAGER, OR CUSTODIAN
WHO RENDERED SERVICES TO THE PLAN OR WHO HAD TRANSACTIONS WITH THE
PLAN) WHO RECEIVED DIRECTLY OR INDIRECTLY COMPENSATION FROM THE
PLAN DURING THE PRECEDING YEAR FOR SERVICES RENDERED TO THE PLAN
OR TIS PARTICIPANTS, THE AMOUNT OF SUCH COMPENSATION, THE NATURE
OF HIS SERVICES TO THE PLAN OR ITS PARTICIPANTS, HIS RELATIONSHIP
TO THE EMPLOYER OF THE EMPLOYEES COVERED BY THE PLAN OR THE
EMPLOYEE ORGANIZATION, AND ANY OTHER OFFICE, POSITION, OR
EMPLOYMENT HE HOLDS WITH ANY PARTY IN INTEREST.
(4) AN EXPLANATION OF THE REASON FOR ANY CHANGE IN APPOINTMENT
OF TRUSTEE, ACCOUNTANT, INSURANCE CARRIER, ENROLLED ACTUARY,
ADMINISTRATOR, INVESTMENT MANAGER, OR CUSTODIAN.
(5) SUCH FINANCIAL AND ACTUARIAL INFORMATION INCLUDING BUT NOT
LIMITED TO THE MATERIAL DESCRIBED IN SUBSECTIONS (B) AND (D) OF
THIS SECTION AS THE SECRETARY MAY FIND NECESSARY OR APPROPRIATE.
(D) WITH RESPECT TO AN EMPLOYEE PENSION BENEFIT PLAN (OTHER
THAN
(A) A PROFIT SHARING, SAVINGS, OR OTHER PLAN, WHICH IS AN INDIVIDUAL
ACCOUNT PLAN, (B) A PLAN DESCRIBED IN SECTION 301(B), //POST, P. 869.//
OR (C) A PLAN DESCRIBED BOTH IN SECTION 4021(B) AND IN PARAGRAPH (1),
(2), (3), (4), (5), (6), OR (7) OF SECTION 301(A)) //POST, PP. 1014,
868.// AN ANNUAL REPORT UNDER THIS SECTION FOR A PLAN YEAR SHALL INCLUDE
A COMPLETE ACTUARIAL STATEMENT APPLICABLE TO THE PLAN YEAR WHICH SHALL
INCLUDE THE FOLLOWING:
(1) THE DATE OF THE PLAN YEAR, AND THE DATE OF THE ACTUARIAL
VALUATION APPLICABLE TO THE PLAN YEAR FOR WHICH THE REPORT IS
(2) THE DATE AND AMOUNT OF THE CONTRIBUTION (OR CONTRIBUTIONS)
RECEIVED BY THE PLAN FOR THE PLAN YEAR FOR WHICH THE REPORT IS
FILED AND CONTRIBUTIONS FOR PRIOR PLAN YEARS NOT PREVIOUSLY
REPORTED.
(3) THE FOLLOWING INFORMATION APPLICABLE TO THE PLAN YEAR FOR
WHICH THE REPORT IS FILED: THE NORMAL COSTS, THE ACCRUED
LIABILITIES, AN IDENTIFICATION OF BENEFITS NOT INCLUDED IN THE
CALCULATION; A STATEMENT OF THE OTHER FACTS AND ACTUARIAL
ASSUMPTIONS AND METHODS USED TO DETERMINE COSTS, AND A
JUSTIFICATION FOR ANY CHANGE IN ACTUARIAL ASSUMPTIONS OR COST
METHODS; AND THE MINIMUM CONTRIBUTION REQUIRED UNDER SECTION 302.
//POST, P. 869.//
(4) THE NUMBER OF PARTICIPANTS AND BENEFICIARIES, BOTH RETIRED
AND NONRETIRED, COVERED BY THE PLAN.
(5) THE CURRENT VALUE OF THE ASSETS ACCUMULATED IN THE PLAN,
AND THE PRESENT VALUE OF THE ASSETS OF THE PLAN USED BY THE
ACTUARY IN ANY COMPUTATION OF THE AMOUNT OF CONTRIBUTIONS TO THE
PLAN REQUIRED UNDER SECTION 302 AND A STATEMENT EXPLAINING THE
BASIS OF SUCH VALUATION OF PRESENT VALUE OF ASSETS.
(6) THE PRESENT VALUE OF ALL OF THE PLAN'S LIABILITIES FOR
NONFORFEITABLE PENSION BENEFITS ALLOCATED BY THE TERMINATION
PRIORITY CATEGORIES AS SET FORTH IN SECTION 4044 OF THIS ACT,
//POST, P. 1025.// AND THE ACTUARIAL ASSUMPTIONS USED IN THESE
COMPUTATIONS. THE SECRETARY SHALL ESTABLISH REGULATIONS DEFINING
(FOR PURPOSES OF THIS SECTION) "TERMINATION PRIORITY CATEGORIES"
AND ACCEPTABLE METHODS, INCLUDING APPROXIMATE METHODS, FOR
ALLOCATINGTHE PLAN'S LIABILITIES TO SUCH TERMINATION PRIORITY
ACTEGORIES.
(7) A CERTIFICATION OF THE CONTRIBUTION NECESSARY TO REDUCE THE
ACCUMULATED FUNDING DEFICIENCY TO ZERO.
(8) A STATEMENT BY THE ENROLLED ACTUARY--,
(A) THAT TO THE BEST OF HIS KNOWLEDGE THE REPORT IS COMPLETE
AND ACCURATE, AND
(B) THE REQUIREMENTS OF SECTION 302(C) (3) //POST, P. 869//
(RELATING TO REASONABLE ACTUARIAL ASSUMPTION AND METHODS) HAVE
BEEN COMPLIED WITH.
(9) A COPY OF THE OPINION REQUIRED BY SUBSECTION (A)(4).
(10) SUCH OTHER INFORMATION REGARDING THE PLAN AS THE SECRETARY
MAY BY REGULATION REQUIRE.
(!!) SUCH OTHER INFORMATION AS MAY BE NECESSARY TO FULLY AND
FAIRLY DISCLOSE THE ACTUARIAL POSITION OF THE PLAN.
SUCH ACTUARY SHALL MAKE AN ACTUARIAL VALUATION ON THE PLAN FOR EVERY
THIRD PLAN YEAR, UNLESS HE DETERMINES THAT A MORE FREQUENT VALUATION IS
NECESSARY TO SUPPORT HIS OPINION UNDER SUBSECTION (A)(4) OF THIS
SECTION.
(E) IF SOME OR ALL OF THE BENEFITS UNDER THE PLAN ARE PURCHASED FROM
AND GUARANTEED BY AN INSURANCE COMPANY, INSURANCE SERVICE, OR OTHER
SIMILAR ORGANIZATION, A REPORT UNDER THIS SECTION SHALL INCLUDE A
STATEMENT FORM SUCH INSURANCE COMPANY, SERVICE, OR OTHER SIMILAR
ORGANIZATION COVERING THE PLAN YEAR AND ENUMERATION--,
(1) THE PREMIUM RATE OR SUBSCRIPTION CHARGE AND THE TOTAL
PREMIUM OR SUBSECTION CHARGES PAID TO EACH SUCH CARRIER, INSURANCE
SERVICE, OR OTHER SIMILAR ORGANIZATION AND THE APPROXIMATE NUMBER
OF PERSONS COVERED BY EACH CLASS OF SUCH BENEFITS; AND
(2) THE TOTAL AMOUNT OF PREMIUMS RECEIVED, THE APPROXIMATE
NUMBER OF PERSONS COVERED BY EACH CLASS OF BENEFITS, AND THE TOTAL
CLAIMS PAID BY SUCH COMPANY, SERVICE, OR OTHER ORGANIZATION;
DIVIDENDS OR RETROACTIVE RATE ADJUSTMENTS, COMMISSIONS, AND
ADMINISTRATIVE SERVICE OR OTHER FEES OR OTHER SPECIFIC ACQUISITION
COSTS PAID BY SUCH COMPANY, SERVICE, OR OTHER ORGANIZATION; ANY
AMOUNTS HELD TO PROVIDE BENEFITS AFTER RETIREMENT; THE REMAINDER
OF SUCH PREMIUMS; AND THE NAMES AND ADDRESSES OF THE BROKERS,
AGENTS, OR OTHER PERSONS TO WHOMCOMMISSIONS OR FEES WERE PAID, THE
AMOUNT PAID TO EACH, AND FOR WHAT PURPOSE. IF ANY SUCH COMPANY, S
SERVICE, OR OTHER ORGANIZATION DOES NOT MAINTAIN SEPARATE
EXPERIENCE RECORDS COVERING THE SPECIFIC GROUPS IT SERVES, THE
REPORT SHALL INCLUDE IN LIEU OF THE INFORMATION REQUIRED BY THE
FOREGOING PROVISIONS L OF THIS PARAGRAPH (A) A STATEMENT AS TO THE
BASIS OF ITS PREMIUM RATE OR SUBSCRIPTION CHARGE, THE TOTAL AMOUNT
OF PREMIUMS OR SUBSCRIPTION CAHRGES RECEIVED FROM THE PLAN, AND A
COPY OF THE FINANCIAL REPORT OF THE COMPANY, SERVICE, OR OTHER
ORGANIZATION AND (B) IF SUCH COMPANY, SERVICE, OR ORGANIZATION
INCURS SPECIFIC COSTS IN CONNECTION WITH THE ACQUISITION OR
RETENTION OF ANY PARTICULAR PLAN OR PLANS, A DETAILED STATEMENT OF
SUCH COSTS.
SEC. 104. (A)(1) THE ADMINISTRATOR OF ANY EMPLOYEE BENEFIT PLAN
SUBJECT TO THIS PART SHALL FILE WITH THE SECRETARY--,
(A) THE ANNUAL REPORT FOR A PLAN YEAR WITHIN 210 DAYS AFTER THE
CLOSE OF SUCH YEAR (OR WITHIN SUCH TIME AS MAY BE REQUIRED BY
REGULATIONS PROMULGATED BY THE SECRETARY IN ORDER TO REDUCE
DUPLICATIVE FILING);
(B) THE PLAN DESCRIPTION WITHIN 120 DAYS AFTER SUCH PLAN
BECOMES SUBJECT TO THIS PART AND AN UPDATED PLAN DESCRIPTION, NO
MORE FREQUENTLY THAN ONCE EVERY 5 YEARS, AS THE SECRETARY MAY
REQUIRE;
(C) A COPY OF THE SUMMARY PLAN DESCRIPTION AT THE TIME SUCH
SUMMARY PLAN DESCRIPTION IS REQUIRED TO BE FURNISHED TO
PARTICIPANTS AND BENEFICIARIES PURSUANT TO SUBSECTION (B)(1)(B) OF
THIS SECTION; AND
(D) MODIFICATIONS AND CHANGES REFERRED TO IN SECTION 102(A)(2)
WITHIN 60 DAYS AFTER SUCH MODIFICATION OR CHANGE IS ADOPTED OR
OCCURS, AS THE CASE MAY BE.
THE SECRETARY SHALL MAKE COPIES OF SUCH PLAN DESCRIPTIONS, SUMMARY PLAN
DESCRIPTIONS, AND ANNUAL REPORTS AVAILABLE FOR INSPECTION IN THE PUBLIC
DOCUMENT ROOM OF THE DEPARTMENT OF LABOR. THE ADMINISTRATOR SHALL ALSO
FURNISH TO THE SECRETARY, UPON REQUEST, ANY DOCUMENTS RELATING TO THE
EMPLOYEE BENEFIT PLAN, INCLUDING BUT NOT LIMITED TO THE BARGAINING
AGGREEMENT, TRUST AGREEMENT, CONTRACT, OR OTHER INSTRUMENT UNDER WHICH
THE PLAN IS ESTABLISHED OR OPERATED.
(2) (A) WITH RESPECT TO ANNUAL REPORTS REQUIRED TO BE FILED WITH THE
SECRETARY UNDER THIS PART, HE MAY BY REGULATION PRESCRIBE SIMPLIFIED
ANNUAL REPORTS FOR ANY PENSION PLAN FWHICH COVERS LESS THAT 100
PARTICIPANTS. IN ADDITION, AND WITHOUT LIMITING THE FOREGOING SENTENCE,
THE SECRETARY MAY WAIVE OR MODIFY THE REQUIREMENTS OF SECTION 103(D)(6)
IN SUCH CASES OR CATEGORIES OF CASES AS TO WHICH HE FINDS THAT (I) THE
INTERESTS OF THE PLAN PARTICIPANTS ARE NOT HARMED THEREBY AND (II) THE
EXPENSE OF COMPLIANCE WITH THE SPECIFIC REQUIREMENTS OF SECTION
103(D)(6) IS NOT JUSTIFIED BY THE NEEDS OF THE PARTICIPANTS, THE PENSION
BENEFIT GUARANTY CORPORATION, AND THE DEPARTMENT OF LABOR FOR SOME
PORTION OR ALL OF THE INFORMATION OTHERWISE REQUIRED UNDER SECTION
103(D)(6).
(B) NOTHING CONTAINED IN THIS PARAGRAPH SHALL PRECLUDE THE SECRETARY
FORM REQUIRING ANY INFORMATION OR DATA FROM ANY SUCH PLAN TO WHICH THIS
PART APPLIES WHERE HE FINDS SUCH DATA OR INFORMATION IS NECESSARY TO
CARRY OUT THE PURPOSES OF THIS TITLE NOR SHALL THE SECRETARY BE
PRECLUDED FROM REVOKING PROVISIONS FOR SIMPLIFIED REPORTS FOR ANY SUCH
PLAN IF HE FINDS IT NECESSARY TO DO SO IN ORDER TO CARRY OUT THE
OBJECTIVES OF THIS TITLE.
(3) THE SECRETARY MAY BY REGULATION EXEMPT ANY WELFARE BENEFIT PLAN
FROM ALL OR PART OF THE REPORTING AND DISCLOSURE REQUIREMENTS OF THIS
TITLE, OR MAY PROVIDE FOR SIMPLIFIED REPORTING AND DISCLOSURE IF HE
FINDS THAT SUCH REQUIREMENTS ARE INAPPROPRIATE AS APPLIED TO WELFARE
BENEFIT PLANS.
(4) THE SECRETARY MAY REJECT ANY FILING UNDER THIS SECTION--,
(A) IF HE DETERMINES THAT SUCH FILING IS INCOMPLETE FOR
PURPOSES OF THIS PART; OR
(B) IF HE DETERMINES THAT THERE IS ANY MATERIAL QUALIFICATION
BY AN ACCOUNTANT OR ACTUARY CONTAINED IN AN OPINION SUBMITTED
PURSUANT TO SECTION 103(A)(3)(A) OR SECTION 103(A)(4)(B).
(5) IF THE SECRETARY REJECTS A FILING OF A REPORT UNDER PARAGRAPH (4)
AND IF A REVISED FILING SATISFACTORY TO THE SECRETARY IS NOT SUBMITTED
WITHIN 45 DAYS AFTER THE SECRETARY MAKES HIS DETERMINATION UNDER
PARAGRAPH (4) TO REJECT THE FILING, AND IF THE SECRETARY DEEMS IT IN THE
BEST INTEREST OF THE PARITCIPANTS, HE MAY TAKE ANY ONE OR MORE OF THE
FOLLOWING ACTIONS--,
(A) RETAIN AN INDEPENDENT QUALIFIED PUBLIC ACCOUNTANT (AS
DEFINED IN SECTION 103(A)(3)(D) ON BEHALF OF THE PARTICIPANTS TO
PERFORM AN AUDIT,
(B) RETAIN AN ENROLLED ACTUARY (AS DEFINED IN SECTION 103(A)
(4)(C) OF THIS ACT) ON BEHALF OF THE PLAN PARTICIPANTS, TO PREPARE
AN ACTUARIAL STATEMENT.
(C) BRING A CIVIL ACTION FOR SUCH LEGAL OR EQUITABLE RELIEF AS
MAY BE APPROPRIATE TO ENFORCE THE PROVISIONS OF THIS PART, OR
(D) TAKE ANY OTHER ACTION AUTHORIZED BY THIS TITLE.
THE ADMINISTRATOR SHALL PERMIT SUCH ACCOUNTANT OR ACTUARY TO INSPECT
WHATEVER BOOKS AND RECORDS OF THE PLAN ARE NECESSARY FOR SUCH AUDIT.
THE PLAN SHALL BE LIABLE TO THE SECRETARY FOR THE EXPENSES FOR SUCH
AUDIT OR REPORT, AND THE SECRETARY MAY BRING AN ACTION AGAINST THE PLAN
IN ANY COURT OF COMPETENT JURISDICTION TO RECOVER SUCH EXPENSES.
(B) PUBLICATION OF THE SUMMARY PLAN DESCRIPTIONS AND ANNUAL REPORTS
SHALL BE MADE TO PARTICIPANTS AND BENEFICIARIES OF THE PARTICULAR PLAN
AS FOLLOWS:
(1) THE ADMINISTRATOR SHALL FURNISH TO EACH PARTICIPANT, AND EACH
BENEFICIARY RECEIVING BENEFITS UNDER THE PLAN, A COPY OF THE SUMMARY,
PLAN DESCRIPTION, AND ALL MODIFICATIONS AND CHANGES REFERRED TO IN
SECTION 102(A)(1)--,
(A) WITHIN 90 DAYS AFTER HE BECOMES A PARTICIPANT, OR (IN THE
CASE OF A BENEFICIARY) WITHIN 90 DAYS AFTER HE FIRST RECEIVES
BENEFITS, OR
(B) IF LATER, WITHIN 120 DAYS AFTER THE PLAN BECOMES SUBJECT TO
THIS PART.
THE ADMINISTRATOR SHALL FURNISH TO EACH PARTICIPANT, AND EACH
BENEFICIARY RECEIVING BENEFITS UNDER THE PLAN, EVERY FIFTH YEAR AFTER
THE PLAN BECOMES SUBJECT OT THIS PART AN UPDATED SUMMARY PLAN
DESCRIPTION DESCRIBED IN SECTION 102 WHICH INTEGRATES ALL PLAN
AMENDMENTS MADE WITHIN SUCH FIVE-YEAR PERIOD, EXCEPT THAT IN A CASE
WHERE NO AMENDMENTS HAVE BEEN MADE TO A PLAN DURING SUCH FIVE-YEAR
PERIOD THIS SENTENCE SHALL NOT APPLY. NOTWITHSTANDING THE FOREGOING,
THE ADMINISTRATOR SHALL FURNISH TO EACH PARTICIPANT, AND TO EACH
BENEFICIARY RECEIVING BENEFITS UNDER THE PLAN, THE SUMMARY PLAN
DESCRIPTION DESCRIBED IN SECTION 102 EVERY TENTH YEAR AFTER THE PLAN
BECOMES SUBJECT TO THIS PART. IF THERE IS A MODIFICATION OR CHANGE
DESCRIBED IN SECTION 102(A) (1), A SUMMARY DESCRIPTION OF SUCH
MOKIFICATION OR CHANGE SHALL BE FURNISHED NOT LATER THAN 210 DAYS AFTER
THE IND OF THE PLAN YEAR IN WHICH THE CHANGE IS ADOPTED TO EACH
PARTICIPANT, AND TO EACH BENEFICIARY WHO IS RECEIVING BENEFITS UNDER THE
PLAN.
(2) THE ADMINISTRATOR SHALL MAKE COPIES OF THE PLAN DESCRIPTION AND
THE LATEST ANNUAL REPORT AND THE BARGAINING AGREEMENT, TRUST AGREEMENT,
CONTRACT, OR OTHER INSTRUMENTS UNDER WHICH THE PLAN WAS ESTABLISHED OR
IS OPERATED AVAILABLE FOR EXAMINATION BY ANY PLAN PARTICIPANT OR
BENEFICIARY IN THE PRINCIPAL OFFICE OF THE ADMINISTRATOR AND IN SUCH
OTHER PLACES AS MAY BE NECESSARY TO MAKE AVAILABLE ALL PERTINENT
INFORMATION TO ALL PARTICIPANTS (INCLUDING SUCH PLACES AS THE SECRETARY
MAY PRESCRIBE BY REGULATIONS).
(3) WITHIN 210 DAYS AFTER THE CLOSE OF THE FISCAL YEAR OF THE PLAN,
THE ADMINISTRATOR SHALL FURNISH TO EACH PARTICIPANT, AND TO EACH
BENEFICIARY RECEIVING BENEFITS UNDER THE PLAN, A COPY OF THE STATEMENTS
AND SCHEDULES, FOR SUCH FISCAL YEAR, DESCRIBED IN SUBPARAGRAPHS (A) AND
(B) OF SECTION 103(B)(3) AND SUCH OTHER MATERIAL AS IS NECESSARY TO
FAIRLY SUMMARIZE THE LATEST ANNUAL REPORT.
(4) THE ADMINISTRATOR SHALL, UPON WRITTEN REQUEST OF ANY PARTICIPANT
OR BENEFICIARY, FURNISH A COPY OF THE LATEST UPDATED SUMMARY PLAN
DESCRIPTION, PLAN DESCRIPTION, AND THE LATEST ANNUAL REPORT, ANY
TERMINAL REPORT, THE BARGAINING AGREEMENT, TRUST AGREEMENT, CONTRACT, OR
OTHER INSTRUMENTS UNDER WHICH THE PLAN IS ESTABLISHED OR OPERATED. THE
ADMINISTRATOR MAY MAKE A REASONABLE CHARGE TO COVER THE COST OF
FURNISHING SUCH COMPLETE COPIES. THE SECRETARY MAY BY REGULATION
PRESCRIBE THE MAXIMUM AMOUNT WHICH WILL CONSTITUTE A REASONABLE CHARGE
UNDER THE PRECEDING SENTENCE.
(C) THE SECRETARY MAY BY REGULATION REQUIRE THAT THE ADMINISTRATOR OF
ANY EMPLOYEE BENEFIT PLAN FURNISH TO EACH PARTICIPANT AND TO EACH
BENEFICIARY RECEIVING BENEFITS UNDER THE PLAN A STATEMENT OF THE RIGHTS
OF PARTICIPANTS AND BENEFICIARIES UNDER THIS TITLE.
(D) CROSS REFERENCE--,
FOR REGULATIONS RESPECTING COORDINATION OF REPORTS TO THE SECRETARIES
OF LABOR AND THE TREASURY, SEE SECTION 3004.
SEC. 105. (A) EACH ADMINISTRATOR OF AN EMPLOYEE PENSION BENEFIT PLAN
SHALL FURNISH TO ANY PLAN PARTICIPANT OR BENEFICIARY WHO SO REQUESTS IN
WRITING, A STATEMENT INDICATING, ON THE BASIS OF THE LATEST AVAILABLE
INFORMATION--,
(1) THE TOTAL BENEFITS ACCRUED, AND
(2) THE NONFORFEITABLE PENSION BENEFITS, IF ANY, WHICH HAVE
ACCRUED, OR THE EARLIEST DATE ON WHICH BENEFITS WILL BECOME
NONFORFEITABLE.
(B) IN NO CASE SHALL A PARTICIPANT OR BENEFICIARY BE ENTITLED UNDER
THIS SECTION TO RECEIVE MORE THAN ONE REPORT DESCRIBED IN SUBSECTION (A)
DURING ANY ONE 12 MONTH PERIOD.
(C) EACH ADMINISTRATOR REQUIRED TO REGISTER UNDER SECTION 6057 OF THE
INTERNAL REVENUE CODE OF 1954 //POST, P. 943.// SHALL, BEFORE THE
EXPIRATION OF THE TIME PRESCRIBED FOR SUCH REGISTRATION, FURNISH TO EACH
PARTICIPANT DESCRIBED IN SUBSECTION (A)(2)(C) OF SUCH SECTION, AN
INDIVIDUAL STATEMENT SETTING FORTH THE INFORMATION WITH RESPECT TO SUCH
PARTICIPANT REQUIRED TO BE CONTAINED IN THE REGISTRATION STATEMENT
REQUIRED BY SECTION 6057(A)(2) OF SUCH CODE.
(D) SUBSECTION (A) OF THIS SECTION SHALL APPLY TO A PLAN TO WHICH
MORE THAN ONE UNAFFILIATED EMPLOYER IS REQUIRED TO CONTRIBUTE ONLY TO
THE EXTENT PROVIDED IN REGULATIONS PRESCRIBED BY THE SECRETARY IN
COORDINATION WITH THE SECRETARY OF THE TREASURY.
SEC. 106. (A) EXCEPT AS PROVIDED IN SUBSECTION (B), THE CONTENTS OF
THE DESCRIPTIONS, ANNUAL REPORTS, STATEMENTS, AND OTHER DOCUMENTS FILED
WITH THE SECRETARY PURSUANT TO THIS SHALL BE PUBLIC INFORMATION AND THE
SECRETARY SHALL MAKE ANY SUCH INFORMATION AND DATA AVAILABLE FOR
INSPECTION IN THE PUBLIC DOCUMENTROOM OF THE DEPARTMENT OF LABOR. THE
SECRETARY MAY USE THE INFORMATION AND DATA FOR STATISTICAL AND RESEARCH
PURPOSES, AND COMPILE AND PUBLISH SUCH STUDIES, ANALYSES, REPORTS, AND
SURVEYS BASED THEREON AS HE MAY DEEM APPROPRIATE.
(B) INFORMATION DESCRIBED IN SECTION 105(A) AND 105(C) WITH RESPECT
TO A PARTICIPANT MAY BE DISCLOSED ONLY TO THE EXTENT THAT INFORMATION
RESPECTING THAT PARTICIPANT'S BENEFITS UNDER TITLE II OF THE SOCIAL
SECURITY ACT //42 USC 401.// MAY BE DISCLOSED UNDER SUCH ACT.
SEC. 107. EVERY PERSON SUBJECT TO A REQUIREMENT TO FILE ANY
DESCRIPTION OR REPORT OR TO CERTIFY ANY INFORMATION THEREFOR UNDER THIS
TITLE OR WHO WOULD BE SUBJECT TO SUCH A REQUIREMENT BUT FOR AN EXEMPTION
OR SIMPLIFIED REPORTING REQUIREMENT UNDER SECTION 104(A) (2) OR (3) OF
THIS TITLE SHALL MAINTAIN RECORDS ON THE MATTERS OF WHICH DISCLOSURE IS
REQUIRED WHICH WILL PROVIDE IN SUFFICIENT DETAIL THE NECESSARY BASIC
INFORMATION AND DATA FROM WHICH THE DOCUMENTS THUS REQUIRED MAY BE
VERIFIED, EXPLAINED, OR CLARIFIED, AND CHECKED FOR ACCURACY AND
COMPLETENESS, AND SHALL INCLUDE VOUCHERS, WORKSHEETS, RECEIPTS, AND
APPLICABLE RESOLUTIONS, AND SHALL KEEP SUCH RECORDS AVAILABLE FOR
EXAMINATION FOR A PERIOD OF NOT LESS THAN SIX YEARS AFTER THE FILING
DATE OF THE DOCUMENTS BASED ON THE INFORMATION WHICH THEY CONTAIN, OR
SIX YEARS AFTER THE DATE ON WHICH SUCH DOCUMENTS WOULD HAVE BEEN FILED
BUT FOR AN EXEMPTION OR SIMPLIFIED REPORTING REQUIREMENT UNDER SECTION
104(A) (2) (3).
SEC. 108. IN ANY CRIMINAL PROCEEDINGUNDER SECTION 501 //POST, P.
891.// BASED ON ANY ACT OR OMISSION IN ALLEGED VIOLATION OF THIS PART OR
SECTION 412, //POST, P. 888.// NO PERSON SHALL BE SUBJECT TO ANY
LIABILITY OR PUNISHMENT FOR OR ON ACCOUNT OF THE FAILURE OF SUCH PERSON
TO (1) COMPLY WITH THIS PART OR SECTION 412, IF HE PLEADS AND PROVES
THAT THE ACT OF OMISSION COMPLAINED OF WAS IN GOOD FAITH, IN CONFORMITY
WITH, AND IN RELIANCE ON ANY REGULATION OR WRITTEN RULING OF THE
SECRETARY, OR (2) PUBLISH AND FILE ANY INFORMATION REQUIRED BY ANY
PROVISION OF THIS PART IF HE PLEADS AND PROVES THAT HE PUBLISHED AND
FILED SUCH INFORMATION IN GOOD FAITH, AND IN CONFORMITY WITH ANY
REGULATION OR WRITTEN RULING OF THE SECRETARY ISSUED UNDER THIS PART
REGARDING THE FILING OF SUCH REPORTS. SUCH A DEFENSE, IF ESTABLISHED,
SHALL BE A BAR TO THE ACTION OF PROCEEDING, NOTWITHSTANDING THAT (A)
AFTER SUCH ACT OR OMISSION, SUCH INTERPRETATION OR OPINION IS MODIFIED
OR RESCINDED OR IS DETERMINED BY JUDICIAL AUTHORITY TO BE INVALID OR OF
NO LEGAL EFFECT, OR (B) AFTER PUBLISHING OR FILING THE PLAN DESCRIPTION,
ANNUAL REPORTS, AND OTHER REPORTS REQUIRED BY THIS TITLE, SUCH
PUBLICATION OR FILING IS DETERMINED BY JUDICIAL AUTHORITY NOT TO BE IN
CONFORMITY WITH THE REQUIREMENTS OF THIS PART.
SEC. 109. (A) EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION,
THE SECRETARY MAY REQUIRE THAT ANY INFORMATION REQUIRED UNDER THIS TITLE
TO BE SUBMITTED TO HIM, INCLUDING BUT NOT LIMITED TO THE INFORMATION
REQUIRED TO BE FILED BY THE ADMINISTRATOR PURSUANT TO SECTION 103(B)(3)
AND (C), MUST BE SUBMITTED ON SUCH FORMS AS HE MAY PRESCRIBE.
(B) THE FINANCIAL STATEMENT AND OPINION REQUIRED TO BE PREPARED BY AN
INDEPENDENT QUALIFIED PUBLIC ACCOUNTANT PURSUANT TO SECTION 103(A)
(3)(A), THE ACTUARIAL STATEMENT REQUIRED TO BE PREPARED BY AN ENROLLED
ACTUARY PURSUANT TO SECTION 103(A)(4)(A) AND THE SUMMARY PLAN
DESCRIPTION REQUIRED BY SECTION 102(A) SHALL NOT BE REQUIRED TO BE
SUBMITTED ON FORMS
(C) THE SECRETARY MAY PRESCRIBE THE FORMAT AND CONTENT OF THE SUMMARY
PLAN DESCRIPTION, THE SUMMARY OF THE ANNUAL REPORT DESCRIBED IN SECTION
104(B)(3) AND ANY OTHER REPORT, STATEMENTS OR DOCUMENTS (OTHER THAN THE
BARGAINING AGREEMENT, TRUST AGREEMENT, CONTRACT, OR OTHER INSTRUMENT
UNDER WHICH THE PLAN IS ESTABLISHED OR OPERATED), WHICH ARE REQUIRED TO
BE FURNISHED OR MADE AVAILABLE TO PLAN PARTICI PANTS AND BENEFICIARIES
RECEIVING BENEFITS UNDER THE PLAN.
SEC. 110. (A) THE SECRETARY ON HIS OWN MOTION OR AFTER HAVING RECEIVED
THE PETITION OF AN ADMINISTRATOR MAY PRESCRIBE AN ALTERNATIVE METHOD FOR
SATISFYING ANY REQUIREMENT OF THIS PART WITH RESPECT TO ANY PENSION
PLAN, OR CLASS OF PENSION PLANS, SUBJECT TO SUCH REQUIREMENT IF HE
DETERMINES--,
(1) THAT THE USE OF SUCH ALTERNATIVE METHOD IS CONSISTENT WITH
THE PURPOSES OF THIS TITLE AND THAT IT PROVIDES ADEQUATE
DISCLOSURE TO THE PARTICIPANTS AND BENEFICIARIES IN THE PLAN, AND
ADEQUATE REPORTING TO THE SECRETARY,
(2) THAT THE APPLICATION OF SUCH REQUIREMENT OF THIS PART
WOULD--,
(A) INCREASE THE COSTS TO THE PLAN, OR
(B) IMPOSE UNREASONABLE ADMINISTRATIVE BURDENS WITH RESPECT TO
THE OPERATION OF THE PLAN, HAVING REGARD TO THE PARTICULAR
CHARACTERISTICS OF THE PLAN OR THE TYPE OF PLAN INVOLVED; AND
(3) THAT THE APPLICATION OF THIS PART WOULD BE ADVERSE TO THE
INTEREST OF PLAN PARTICIPANTS IN THE AGGREGATE.
(B) AN ALTERNATIVE METHOD MAY BE PRESCRIBED UNDER SUBSECTION (A) BY
REGULATION OR OTHERWISE. IF AN ALTERNATIVE METHOD IS PRESCRIBED OTHER
THAN BY REGULATION, THE SECRETARY SHALL PROVIDE NOTICE AND AN
OPPORTUNITY FOR INTERESTED PERSONS TO PRESENT THEIR VIEWS, AND SHALL
PUBLISH IN THE FEDERAL REGISTER THE PROVISIONS OF SUCH ALTERNATIVE
METHOD.
SEC. 111. (A) (1) THE WELFARE AND PENSION PLANS DISCLOSURE ACT //29
USC 301 NOTE.// IS REPEALED EXCEPT THAT SUCH ACT SHALL CONTINUE TO APPLY
TO ANY CONDUCT AND EVENTS WHICH OCCURRED BEFORE THE EFFECTIVE DATE OF
THIS PART.
(2) (A) SECTION 664 OF TITLE 18, UNITED STATES CODE, IS AMENDED BY
STRIKING OUT "ANY SUCH PLAN SUBJECT TO THE PROVISIONS OF THE WELFARE AND
PENSION PLANS DISCLOSURE ACT" AND INSERTING IN LIEU THEREOF "ANY
EMPLOYEE BENEFIT PLAN SUBJECT TO ANY PROVISION OF TITLE I OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974".
(B) (I) SECTION 1027 OF SUCH TITLE 18 IS AMENDED BY STRIKING OUT
"WELFARE AND PENSION PLANS DISCLOSURE ACT" AND INSERTING IN LIEU THEREOF
"TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974", AND BY
STRIKING OUT "ACT" EACH PLACE IT APPEARS AND INSERTING IN LIEU THEREOF
"TITLE".
(II) THE HEADING FOR SUCH SECTION IS AMENDED BY STRIKING OUT "WELFARE
AND PENSION PLANS DISCLOSURE ACT" AND INSERTING IN LIEU THEREOF
"EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974".
(III) THE TABLE OF SECTIONS OF CHAPTER 47 OF SUCH TITLE 18 IS AMENDED
BY STRIKING OUT "WELFARE AND PENSION PLANS DISCLOSURE ACT" IN THE ITEN
RELATING TO SECTION 1027 AND INSERTING IN LIEU THEREOF "EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974". //ANTE, P. 829.//
(C) SECTION 1954 OF SUCH TITLE 18 IS AMENDED BY STRIKING OUT "ANY
PLAN SUBJECT TO THE PROVISIONS OF THE WELFARE AND PENSION PLANS
DISCLOSURE ACT OF AS AMENDED" AND INSERTING IN LIEU THEREOF "ANY
EMPLOYEE WELFARE BENEFIT PLAN OR EMPLOYEE PENSION BENEFIT PLAN,
RESPECTIVELY, SUBJECT TO ANY PROVISION OF TITLE I OR THE EMPLOYEE
RETIREMENT IMCOME SECURITY ACT OF 1974"; AND BY STRIKING OUT "SECTIONS
3(3) AND 5(B) (1) AND (2) OF THE WELFARE AND PENSION PLANS DISCLOSURE
ACT, AS AMENDED" AND INSERTING IN LIEU THEREOF "SECTIONS 3(4) AND (3)(
16) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974".
(D) SECTION 211 OF THE LABOR-MANAGEMENT REPORTING AND DISCLOSURE ACT
OF 1959 (29 U.S.C. 441) IS AMENDED BY STRIKING OUT "WELFARE AND PENSION
PLANS DISCLOSURE ACT" AND INSERTING IN LIEU THEREOF "EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974".
(B) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2), THIS PAR (INCLUDING THE
AMENDMENTS AND REPEALS MADE BY SUBSECTION (A)) SHALL TAKE EFFECT ON
JANUARY 1, 1975.
(2) IN THE CASE OF A PLAN WHICH HAS A PLAN YEAR WHICH BEGINS BEFORE
JANUARY 1, 1975, AND ENDS AFTER DECEMBER 31, 1974, THE SECRETARY MAY
POSTPONE BY REGULATION THE EFFECTIVE DATE OF THE REPEAL OF ANY PROVISION
OF THE WELFARE AND PENSION PLANS DISCLOSURE ACT (AND OF ANY AMENDMENT
MADE BY SUBSECTION (A)(2)) AND THE EFFECTIVE DATE OF ANY PROVISION OF
THIS PART, UNTIL THE BEGINNING OF THE FIRST PLAN YEAR OF SUCH PLAN WHICH
BEGINS AFTER JANUARY 1, 1975.
(C) THE PROVISIONS OF THIS TITLE AUTHORIZING THE SECRETARY TO
PROMULGATE REGULATIONS SHALL TAKE EFFECT ON THE DATE OF ENACTMENT OF
THIS ACT.
SEC. 201. THIS PART SHALL APPLY TO ANY EMPLOYEE BENEFIT PLAN
DESCRIBED IN SECTION ((A) (AND NOT EXEMPTED UNDER SECTION 4(B)) OTHER
THAN--,
(1) AN EMPLOYEE WELFARE BENEFIT PLAN;
(2) A PLAN WHICH IS UNFUNDED AND IS MAINTAINED BY AN EMPLOYER
PRIMARILY FOR THE PURPOSE OF PROVIDING DEFERRED COMPENSATION FOR A
SELECT GROUP OF MANAGEMENT OR HIGHLY COMPENSATED EMPLOYEES;
(3) (A) A PLAN ESTABLISHED AND MAINTAINED BY A SOCIETY, ORDER,
OR ASSOCIATION DESCRIBED IN SECTION 510(C) (8) OR (9) OF THE
INTERNAL REVENUE CODE OF 1954, //26 USC 501.// IF NO PART OF THE
CONTRIBUTIONS TO OR UNDER SUCH PLAN ARE BY EMPLOYERS OF
PARTICIPANTS IN SUCH PLAN, OR
(B) A TRUST DESCRIBED IN SECTION 501(C) (18) OF SUCH CODE;
(4) A PLAN WHICH IS ESTABLISHED AND MAINTAINED BY A LABOR
ORGANIZATION DESCRIBED IN SECTION 501(C) (5) OF THE INTERNAL
REVENUE CODE OF 1954 AND WHICH DOES NOT ATANY TIME AFTER THE DATE
OF ENACTMENT OF THIS ACT PROVIDE FOR EMPLOYER CONTRIBUTIONS;
(5) ANY AGREEMENT PROVIDING PAYMENTS TO A RETIRED PARTNER OR A
DECEASED PARTNER'S SUCCESSOR IN INTEREST, AS DESCRIBED IN SECTION
736 OF THE INTERNAL REVENUE CODE OF 1954; //26 USC 736.//
(6) AN INDIVIDUAL RETIREMENT ACCOUNT OR ANNUITY DESCRIBED IN
SECTION 408 OF THE INTERNAL REVENUE CODE OF 1954, //POST, P.
959.// OR A RETIREMENT BOND DESCRIBED IN SECTION 409 OF SUCH CODE;
//POST, P. 964.// OR
(7) AN EXCESS BENEFIT PLAN.
SEC. 202. (A) (1) (A) NO PENSION PLAN MAY REQUIRE, AS A CONDITION OF
PARTICIPATION IN THE PLAN, THAT AN EMPLOYEE COMPLETE A PERIOD OF SERVICE
WITH THE EMPLOYER OR EMPLOYERS MAINTAINING THE PLAN EXTENDING BEYOND THE
LATER OF THE FOLLOWING DATES--,
(I) THE DATE ON WHICH THE EMPLOYEE ATTAINS THE AGE OF 25; OR
(II) THE DATE ON WHICH HE COMPLETES 1 YEAR OF SERVICE.
(B) (I) IN THE CASE OF ANY PLAN WHICH PROVIDES THAT AFTER NOT MORE
THAN 3 YEARS OF SERVICE EACH PARTICIPANT HAS A RIGHT TO 100 PERCENT OF
HIS ACCRUED BENEFIT UNDER THE PLAN WHICH IS NONFORFEITABLEL AT THE TIME
SUCH BENEFIT ACCRUES, CLAUSE (II) OF SUBPARAGRAPH (A) SHALL BE APPLIED
BY SUBSTITUTING "3 YEARS OF SERVICE" FOR "1YEAR OF SERVICE".
(II) IN THE CASE OF ANY PLAN MAINTAINED EXCLUSIVELY FOR EMPLOYEES OF
AN EDUCATIONAL INSTITUTION (AS DEFINED IN SECTION 170(B)(1)(A)(II) OF
THE INTERNAL REVENUE CODE OF 1954) //26 USC 170.// BY AN EMPLOYER WHICH
IS EXEMPT FROM TAX UNDER SECTION 501(A) OF SUCH CODE, //26 USC 501.//
WHICH PROVIDES THAT EACH PARTICIPANT HAVING AT LEAST 1 YEAR OF SERVICE
HAS A RIGHT TO 100 PERCENT OF HIS ACCRUED BENEFIT UNDER THE PLAN WHICH
IS NONFORFEITABLE AT THE TIME SUCH BENEFIT ACCRUES, CLAUSE (I) OF
SUBPARAGRAPH (A) SHALL BE APPLIED BY SUBSTITUTING "30" FOR "25". THIS
CLAUSE SHALL NOT APPLY TO ANY PLAN TO WHICH CLAUSE (I) APPLIES.
(2) NO PENSION PLAN MAY EXCLUDE FROM PARTICIPATION (ON THE BASIS OF
AGE) EMPLOYEES WHO HAVE ATTAINED A SPECIFIED AGE, UNLESS--,
(A) THE PLAN IS A--,
(I) DEFINED BENEFIT PLAN, OR
(II) TARGET BENEFIT PLAN (AS DEFINED UNDER REGULATIONS
PRESCRIBED BY THE SECRETARY OF THE TREASURY), AND
(B) SUCH EMPLOYEES BEGIN EMPLOYMENT WITH THE EMPLOYER AFTER
THEY HAVE ATTAINED A SPECIFIED AGE WHICH IS NOT MORE THAN 5 YEARS
BEFORE THE NORMAL RETIREMENT AGE UNDER THE PLAN.
(3) (A) FOR PURPOSES OF THIS SECTION, THE TERM "YEAR OF SERVICE"
MEANS A 12-MONTH PERIOD DURING WHICH THE EMPLOYEE HAS NOT LESS THAN
1,000 HOURS OF SERVICE. FOR PURPOSES OF THIS PARAGRAPH, COMPUTATION OF
ANY 12-MONTH PERIOD SHALL BE MADE WITH REFERENCE TO THE DATE ON WHICH
THE EMPLOYEE'S EMPLOYMENT COMMENCED, EXCEPT THAT, IN ACCORDANCE WITH
REGULATIONS PRESCRIBED BY THE SECRETARY, SUCH COMPUTATION MAY BE MADE BY
REFERENCE TO THE FIRST DAY OF A PLAN YEAR IN THE CASE OF AN EMPLOYEE WHO
DOES NOT COMPLETE 1,000 HOURS OF SERVICE DURING THE 12-MONTH PERIOD
BEGINNING ON THE DATE HIS EMPLOYMENT COMMENCED.
(B) IN THE CASE OF ANY SEASONAL INDUSTRY WHERE THE CUSTOMARY PERIOD
OF EMPLOYMENT IS LESS THAN 1,000 HOURS DURING A CALENDAR YEAR, THE TERM
"YEAR OF SERVICE" SHALL BE SUCH PERIOD AS MAY BE DETERMINED UNDER
REGULATIONS PRESCRIBED BY THE SECRETARY.
(C) FOR PURPOSES OF THIS SECTION, THE TERM "HOUR OF SERVICE" MEANS A
TIME OF SERVICE DETERMINED UNDER REGULATIONS PRESCRIBED BY THE
SECRETARY.
(D) FOR PURPOSES OF THIS SECTION, IN THE CASE OF ANY MARITIME
INDUSTRY, 125 DAYS OF SERVICE SHALL BE TREATED AS 1,000 HOURS OF
SERVICE. THE SECRETARY MAY PRESCRIBE REGULATIONS TO CARRY OUT THE
PURPOSES OF THIS SUBPARAGRAPH.
(4) A PLAN SHALL BE TREATED AS NOT MEETING THE REQUIREMENTS OF
PARAGRAPH (1) UNLESS IT PROVIDES THAT ANY EMPLOYEE WHO HAS SATISFIED THE
MINIMUM AGE AND SERVICE REQUIREMENTS SPECIFIED IN SUCH PARAGRAPH, AND
WHO IS OTHERWISE ENTITLED TO PARTICIPATE IN THE PLAN, COMMENCES
PARTICIPATION IN THE PLAN NO LATER THAN THE EARLIER OF--,
(A) THE FIRST DAY OF THE FIRST PLAN YEAR BEGINNING AFTER THE
DATE ON WHICH SUCH EMPLOYEE SATISFIED SUCH REQUIREMENTS, OR
(B) THE DATE 6 MONTHS AFTER THE DATE ON WHICH HE SATISFIED SUCH
REQUIREMENTS,
UNLESS SUCH EMPLOYEE WAS SEPARATED FROM THE SERVICE BEFORE THE DATE
REFERRED TO IN SUBPARAGRAPH (A) OR (B), WHICHEVER IS APPLICABLE.
(B)(1) EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPHS (2), (3), AND (4),
ALL YEARS OF SERVICE WITH THE EMPLOYER OR EMPLOYERS MAINTAINING THE PLAN
SHALL BE TAKEN INTO ACCOUNT IN COMPUTING THE PERIOD OF SERVICE FOR
PURPOSES OF SUBSECTION (A)(1).
(2) IN THE CASE OF ANY EMPLOYEE WHO HAS ANY !-YEAR BREAK IN SERVICE
(AS DEFINED IN SECTION 203(B)(3)(A) UNDER THE PLAN TO WHICH THE SERVICE
REQUIREMENTS OF CLAUSE (I) OF SUBSECTION (A)(1)(B) APPLY, IF SUCH
EMPLOYEE HAS NOT SATISFIED SUCH REQUIREMENTS, SERVICE BEFORE SUCH BREAK
SHALL NOT BE REQUIRED TO BE TAKEN INTO ACCOUNT.
(3) IN COMPUTING AN EMPLOYEE'S PERIODOF SERVICE FOR PURPOSES OF
SUBSECTION (A) (1) IN THE CASE OF ANY PARTICIPANT WHO HAS ANY 1-YEAR
BREAK IN SERVICE (AS DEFINED IN SECTION 203(B)(A)), SERVICE BEFORE SUCH
BREAK SHALL NOT BE REQUIRED TO BE TAKEN INTO ACCOUNT UNDER THE PLAN
UNTIL HE HAS COMPLETED A YEAR OF SERVICE (AS DEFINED IN SUBSECTION (A)(
3)) AFTER HIS RETURN.
(4) IN THE CASE OF AN EMPLOYEE WHO DOES NOT HAVE ANY NONFORFEITABLE
RIGHT TO AN ACCRUED BENEFIT DERIVED FROM EMPLOYER CONTRIBUTIONS, YEARS
OF SERVICE WITH THE EMPLOYER OR EMPLOYERS MAINTAINING THE PLAN BEFORE A
BREAK IN SERVICE SHALL NOT BE REQUIRED TO BE TAKEN INTO ACCOUNT IN
COMPUTING THE PERIOD OF SERVICE FOR PURPOSES OF SUBSECTION (A) (1) IF
THE NUMBER OF CONSECUTIVE !-YEAR BREAKS IN SERVICE EQUALS OR EXCEEDS THE
AGGREGATE NUMBER OF SUCH YEARS OF SERVICE BEFORE SUCH BREAK. SUCH
AGGREGATE NUMBER OF YEARS OF SERVICE BEFORE SUCH BREAK SHALL BE DEEMED
NOT TO INCLUDE ANY YEARS OF SERVICE NOT REQUIRED TO BE TAKEN INTO
ACCOUNT UNDER THIS PARAGRAPH BY REASON OF ANY PRIOR BREAK IN SERVICE.
SEC. 203. (A) EACH PENSION PLAN SHALL PROVIDE THAT AN EMPLOYEE'S
RIGHT TO HIS NORMAL RETIREMENT BENEFIT IS NONFORFEITABLE UPON THE
ATTAINMENT OF NORMAL RETIREMENT AGE AND IN ADDITION SHALL SATISFY THE
REQUIREMENTS OF PARAGRAPHS (1) AND (2) OF THIS SUBSECTION.
(1) A PLAN SATISFIES THE REQUIREMENT OF THIS PARAGRAPH IF AN
EMPLOYEE'S RIGHTS IN HIS ACRRUED BENEFIT DERIVED FROM HIS OWN
CONTRIBUTIONS ANR NONFORFEITABLE.
(2) A PLAN SATIFIES THE REQUIREMENTS OF THIS PARAGRAPH IF IT
SATIFIES THE REQUIREMENTS OF SUBPARAGRAPH (A), (B), OR (C).
(A) A PLAN SATISFIES THE REQUIREMENTS OF THIS SUBPARAGRAPH IF
AN EMPLOYEE WHO HAS AT LEAST 10 YEARS OF SERVICE HAS
NONFORFEITABLE RIGHT TO 100 PERCENT OF HIS ACCRUED BENEFIT DERIVED
FROM EMPLOYER CONTRIBUTIONS.
(B) A PLAN SATISFIES THE REQUIREMENTS OF THIS SUBPARAGRAPH IF
AN EMPLOYEE WHO HAS COMPLETED AT LEAST 5 YEARS OF SERVICE HAS A
NONFORFEITABLE RIGHT TO A PERCENTAGE OF HIS ACRUED BENEFIT DERIVED
FROM EMPLOYER CONTRIBUTIONS WHICH PERCENTAGE IS NOT LESS THAN THE
PERCENTAGE DETERMINED UNDER THE FOLLOWING TABLE:
(C) (I) A PLAN SATISFIES THE REQUIREMENTS OF THIS SUBPARAGRAPH
IF A PARTICIPANT WHO IS NOT SEPARATED FROM THE SERVICE, WHO HAS
COMPLETED AT LEAST 5 YEARS OF SERVICE, AND WITH RESPECT TO WHOM
THE SUM OF HIS AGE AND YEARS OF SERVICE EQUALS OR EXCEEDS 45, HAS
A NONFORFEITABLE RIGHT TO A PERCENTAGE OF HIS ACCRUED BENEFIT
DERIVED FROM EMPLOYER CONTRIBUTIONS DETERMINED UNDER THE FOLLOWING
TABLE:
NONFORFEITABLE
(II) NOTWITHSTANDING CLAUSE (I), A PLAN SHALL NOT BE TREATED AS
SATISFYING THE REQUIREMENTS OF THIS SUBPARAGRAPH UNLESS ANY
PARTICIPANT WHO HAS COMPLETED AT LEAST 10 YEARS OF SERVICE HAS A
NONFORFIETABLE RIGHT TO NOT LESS THAN 50 PERCENT OF HIS ACCRUED
BENEFIT DERIVED FROM EMPLOYER CONTRIBUTIONS AND TO NOT LESS THAN
AN ADDITIONAL 10 PERCENT FOR EACH ADDITIONAL YEAR OF SERVICE
THEREAFTER.
(3) (A) A RIGHT TO AN ACCRUED BENEFIT DERIVED FROM EMPLOYER
CONTRIBUTIONS SHALL NOT BE TREATED AS FORFEITABLE SOLELY BECAUSE THE
PLAN PROVIDES THAT IT IS NOT PAYABLE IF THE PARTICIPANT DIES (EXCEPT IN
THE CASE OF A SURVIVOR ANNUITY WHICH IS PAYABLE AS PROVIDED IN SECTION
205).
(B) A RIGHT TO AN ACCRUED BENEFIT DERIVED FROM EMPLOYER CONTRIBUTIONS
SHALL NOT BE TREATED AS FORFEITABLE SOLELY BECAUSE THE PLAN PROVIDES
THAT THE PAYMENT OF BENEFITS IS SUSPENDED FOR SUCH PERIOD AS THE
EMPLOYEE IS EMPLOYED, SUBSEQUENT TO THE COMMENCEMENT OF PAYMENT OF SUCH
BENEFITS--,
(I) IN THE CASE OF A PLAN OTHER THAN A MULTIEMPLOYER PLAN, BY
AN EMPLOYER WHO MAINTAINS THE PLAN UNDER WHICH SUCH BENEFITS WERE
BEING PAID; AND
(II) IN THE CASE OF A MULTIEMPLOYER PLAN, IN THE SAME INDUSTRY,
IN THE SAME TRADE OR CRAFT, AND THE SAME GEOGRAPHIC AREA COVERED
BY THE PLAN, AS WHEN SUCH BENEFITS COMMENCED.
THE SECRETARY SHALL PRESCRIBE SUCH REGULATIONS AS MAY BE NECESSARY TO
CARRY OUT THE PURPOSES OF THIS SUBPARAGRAPH, INCLUDING REGULATIONS WITH
RESPECT TO THE MEANING OF THE TERM "EMPLOYED".
(C) A RIGHT TO AN ACCRUED BENEFIT DERIVED FROM EMPLOYER CONTRIBUTIONS
SHALL NOT BE TREATED AS FORFEITABLE SOLELY BECAUSE PLAN AMENDMENTS MAY
BE GIVEN RETROACTIVE APPLICATION AS PROVIDED IN SECTION 302(C) (8).
(D) (I) A RIGHT TO AN ACCRUED BENEFIT DERIVED FROM EMPLOYER
CONTRIBUTIONS SHALL NOT BE TREATED AS FORFEITABLE SOLELY BECAUSE THE
PLAN PROVIDES THAT, IN THE CASE OF A PARTICIPANT WHO DOES NOT HAVE A
NONFORFEITABLE RIGHT TO AT LEAST 50 PERCENT OF HIS ACCRUED BENEFIT
DERIVED FROM EMPLOYER CONTRIBUTIONS, SUCH ACCRUED BENEFIT MAY BE
FORFEITED ON ACCOUNT OF THE WITHDRAWAL BY THE PARTICIPANT OF ANY AMOUNT
ATTRIBUTABLE TO THE BENEFIT DERIVED FROM MANDATORY CONTRIBUTIONS (AS
DEFINED IN THE LAST SENTENCE OF SECTION 204(C) (2) (C) MADE BY SUCH
PARTICIPANT.
(II) CLAUSE (I) SHALL NOT APPLY TO A PLAN UNLESS THE PLAN PROVIDES
THAT ANY ACCRUED BENEFIT FORFEITED UNDER A PLAN PROVISION DESCRIBED IN
SUCH CLAUSE SHALL BE RESTORED UPON REPAYMENT BY THE PARTICIPANT OF THE
FULL AMOUNT OF THE WITHDRAWAL DESCRIBED IN SUCH CLAUSE PLUS, IN THE CASE
OF A DEFINED BENEFIT PLAN, INTEREST. SUCH INTEREST SHALL BE COMPUTED ON
SUCH AMOUNT AT THE RATE DETERMINED FOR PURPOSES OF SECTION 204(C) (2)
(C) (IF SUCH SUBSECTION APPLIES) ON THE DATE OF SUCH REPAYMENT (COMPUTED
ANNUALLY FROM THE DATE OF SUCH WITHDRAWAL). IN THE CASE OF A DEFINED
CONTRIBUTION PLAN THE PLAN PROVISION REQUIRED UNDER THIS CLAUSE MAY
PROVIDE THAT SUCH REPAYMENT MUST BE MADE BEFORE THE PARTICIPANT HAS ANY
1-YEAR BREAK IN SERVICE COMMENCING AFTER THE WITHDRAWAL.
(III) IN THE CASE OF ACCRUED BENEFITS DERIVED FROM EMPLOYER
CONTRIBUTIONS WHICH ACCRUED BEFORE THE DATE OF THE ENACTMENT OF THIS
ACT, A RIGHT TO SUCH ACCRUED BENEFIT DERIVED FROM EMPLOYER CONTRIBUTIONS
SHALL NOT BE TREATED AS FORFEITABLE SOLELY BECAUSE THE PLAN PROVIDES
THAT AN AMOUNTOF SUCH ACCRUED BENEFIT MAY BE FORFEITED ON ACCOUNT OF THE
WITHDRAWAL BY THE PARTICIPANT OF AN AMOUNT ATTRIBUTABLE TO THE BENEFIT
DERIVED FROM MANDATORY CONTRIBUTIONS, MADE BY SUCH PARTICIPANT BEFORE
THE DATE OF THE ENACTMENT OF THIS ACT IF SUCH AMOUNT FORFEITED IS
PROPORTIONAL TO SUCH AMOUNT WITHDRAWN. THIS CLAUSE SHALL NOT APPLY TO
ANY PLAN TO WHICH ANY MANADTORY CONTRIBUTION IS MADE AFTER THE DATE OF
THE ENACTMENT OF THIS ACT. THE SECRETARY OF THE TREASURY SHALL
PRESCRIBE SUCH REGULATIONS AS MAY BE NECESSARY TO CARRY OUT THE PURPOSES
OF THIS CLAUSE.
(IV) FOR PURPOSES OF THIS SUBPARAGRAPH, IN THE CASE OF ANY CLASS-YEAR
PLAN, A WITHDRAWAL OF EMPLOYEE CONTRIBUTIONS SHALL BE TREATED AS A
WITHDRAWAL OF SUCH CONTRIBUTIONS ON A PLAN YEAR BY PLAN YEAR BASIS IN
SUCCEEDING ORDER OF TIME.
(V) CORSS REFERENCE.--,
FOR NONFORFEITABLY WHERE THE EMPLOYEE HAS A NONFORFEITABLE RIGHT TO
AT LEAST 50 PERCENT OF HIS ACCRUED BENEFIT, SEE SECTION 206(C).
(B) (1) IN COMPUTING THE PERIOD OF SERVICE UNDER THE PLAN FOR
PURPOSES OF DETERMINING THE NONFORFEITABLE PERCENTAGE UNDER SUBSECTION
(A)(2), ALL OF AN EMPLOYEE'S YEARS OF SERVICE WITH THE EMPLOYER OR
EMPLOYERS MAINTAINING THE PLAN SHALL BE TAKEN INTO ACCOUNT, EXCEPT THAT
THE FOLLOWING MAY BE DISREGARDED:
(A) YEARS OF SERVICE BEFORE AGE22, EXCEPT THAT IN THE CASE OF A
PLAN WHICH DOES NOT SATISFY SUBPARAGRAPH (A) OR (B) OF SUBSECTION
(A)(2), THE PLAN MAY NOT DISREGARD ANY SUCH YEAR OF SERVICE DURING
WHICH THE EMPLOYEE WAS A PARTICIPANT;
(B) YEARS OF SERVICE DURING A PERIOD FOR WHICH THE EMPLOYEE
DECLINED TO CONTRIBUTE TO A PLAN REQUIRING EMPLOYEE CONTRIBUTIONS,
(C) YEARS OF SERVICE WITH AN EMPLOYER DURING ANY PERIOD FOR
WHICH THE EMPLOYER DID NOT MAINTAIN THE PLAN OR A PREDECESSOR
PLAN, DEFINED BY THE SECRETARY OF THE TREASURY;
(D) SERVICE NOT REQUIRED TO BE TAKEN INTO ACCOUNT UNDER
PARAGRAPH (3);
(E) YEARS OF SERVICE BEFORE JANUARY 1, 1971, UNLESS THE
EMPLOYEE HAS HAD AT LEAST 3 YEARS SERVICE AFTER DECEMBER 31, 1970;
AND
(F) YEARS OF SERVICE BEFORE THIS PART FIRST APPLIES TO THE PLAN
IF SUCH SERVICE WOULD HAVE BEEN DISREGARDED UNDER THE RULES OF THE
PLAN WITH REGARD TO BREAKS IN SERVICE, AS IN EFFECT ON THE
APPLICABLE DATE.
(2) (A) FOR PURPOSES OF THIS SECTION, EXCEPT AS PROVIDED IN
SUBPARAGRAPH (C), THE TERM "YEAR OF SERVICE" MEANS A CALENDAR YEAR, PLAN
YEAR, OR OTHER 12-CONSECUTIVE MONTH PERIOD DESIGNATED BY THE PLAN (AND
NOT PROHIBITED UNDER REGULATIONS PRESCRIBED BY THE SECRETARY) DURING
WHICH THE PARTICIPANT HAS COMPLETED 1,000 HOURS OF SERVICE.
(B) FOR PURPOSES OF THIS SECTION, THE TERM "HOUR OF SERVICE" HAS THE
MEANING PROVIDED BY SECTION 202(A) (3) (C).
(C) IN THE CASE OF ANY SEASONAL INDUSTRY WHERE THE CUSTOMARY PERIOD
OF EMPLOYMENT IS LESS THAN 1,000 HOURS DURING A CALENDAR YEAR, THE TERM
"YEAR OF SERVICE" SHALL BE SUCH PERIOD AS DETERMINED UNDER REGULATIONS
OF THE SECRETARY.
(D) FOR PURPOSES OF THIS SECTION, IN THE CASE OF ANY MARITIME
INDUSTRY, 125 DAYS OF SERVICE SHALL BE TREATED AS 1,000 HOURS OF
SERVICE. THE SECRETARY MAY PRESCRIBE REGULATIONS TO CARRY OUT THE
PURPOSES OF THIS SUBPARAGRAPH.
(3) (A) FOR PURPOSES OF THIS PARAGRAPH, THE TERM "1-YEAR BREAK IN
SERVICE" MEANS A CALENDAR YEAR, PLAN YEAR, OR OTHER 12-CONSECUTIVE-MONTH
PERIOD DESIGNATED BY THE PLAN (AND NOT PROHIBITED UNDER REGULATIONS
PRESCRIBED BY THE SECRETARY) DURING WHICH THE PARTICIPANT HAS NOT
COMPLETED MORE THAN 500 HOURS OF SERVICE.
(B) FOR PURPOSES OF PARAGRAPH (1), IN THE CASE OF ANY EMPLOYEE WHO
HAS ANY 1-YEAR BREAK IN SERVICE, YEARS OF SERVICE BEFORE SUCH BREAK
SHALL NOT BE REQUIRED TO BE TAKEN INTO ACCOUNT UNTIL HE HAS COMPLETED A
YEAR OF SERVICE AFTER HIS RETURN.
(C) FOR PURPOSES OF PARAGRAPH (1), IN THE CASE OF ANY PARTICIPANT IN
AN INDIVIDUAL ACCOUNT PLAN OR AN INSURED DEFINED BENEFIT PLAN WHICH
SATISFIES THE REQUIREMENTS OF SUBSECTION 204(B) (1) (F) WHO HAS ANY
!-YEAR BREAK IN SERVICE, YEARS OF SERVICE AFTER SUCH BREAK SHALL NOT BE
REQUIRED TO BE TAKEN INTO ACCOUNT FOR PURPOSES OF DETERMINING THE
NONFORFEITABLE PERCENTAGE OF HIS ACCRUED BENEFIT DERIVED FROM EMPLOYER
CONTRIBUTIONS WHICH ACCRUED BEFORE SUCH BREAK.
(D) FOR PURPOSES OF PARAGRAPH (1), IN THE CASE OF A PARTICIPANT WHO,
UNDER THE PLAN, DOES NOT HAVE ANY NONFORFEITABLE RIGHT TO AN ACCRUED
BENEFIT DERIVED FROM EMPLOYER CONTRIBUTIONS, YEARS OF SERVICE BEFORE ANY
1-YEAR BREAK IN SERVICE SHALL NOT BE REQUIRED TO BE TAKEN INTO ACCOUNT
IF THE NUMBER OF CONSECUTIVE !-YEAR BREAKS IN SERVICE EQUALS OR EXCEEDS
THE AGGREGATE NUMBER OF SUCH YEARS OF SERVICE PRIOR TO SUCH BREAK. SUCH
AGGREGATE NUMBER OF YEARS OF SERVICE BEFORE SUCH BREAK SHALL BE DEEMED
NOT TO INCLUDE ANY YEARS OF SERVICE NOT REQUIRED TO BE TAKEN INTO
ACCOUNT UNDER THIS SUBPARAGRAPH BY REASON OF ANY PRIOR BREAK IN SERVICE.
(4) CROSS REFERENCES.--,
(A) FOR DEFINITIONS OF "ACCRUED BENEFIT" AND "NORMAL RETIREMENT AGE",
SEE SECTIONS 3 (23) AND (24).
(B) FOR EFFECT OF CERTAIN CASH OUT DISTRIBUTIONS, SEE SECTION 204(D)
(1).
(C)(1)(A) A PLAN AMENDMENT CHANGING ANY VESTING SCHEDULE UNDER THE
PLAN SHALL BE TREATED AS NOT SATISFYING THE REQUIREMENTS OF SUBSECTION
(A) (2) IF THE NONFORFEITABLE PERCENTAGE OF THE ACCRUED BENEFIT DERIVED
FROM EMPLOYER CONTRIBUTIONS (DETERMINED AS OF THE LATER OF THE DATE SUCH
AMENDMENT IS ADOPTED, OR THE DATE SUCH AMENDMENT BECOMES EFFECTIVE) OF
ANY EMPLOYEE WHO IS A PARTICIPANT IN THE PLAN IS LESS THAN SUCH
NONFORFEITABLE PERCENTAGE COMPUTED UNDER THE PLAN WITHOUT REGARD TO SUCH
AMENDMENT.
(B) A PLAN AMENDMENT CHANGING ANY VESTING SCHEDULE UNDER THE PLAN
SHALL BE TREATED AN NOT SATISFYING THE REQUIREMENTS OF SUBSECTION (A)
(2) UNLESS EACH PARTICIPANT HAVING NOT LESS THAN 5 TEARS OF SERVICE IS
PERMITTED TO ELECT, WITHIN A REASONABLE PERIOD AFTER ADOPTION OF SUCH
AMENDMENT, TO HAVE HIS NONFORFEITABLE PERCENTAGE COMPUTED UNDER THE PLAN
WITHOUT REGARD TO SUCH AMENDMENT.
(2) SUBSECTION (A) SHALL NOT APPLY TO BENEFITS WHICH MAY NOT BE
PROVIDED FOR DESIGNATED EM PLOYEES IN THE EVENT OF EARLY TERMINATION OF
THE PLAN UNDER PROVISIONS OF THE PLAN ADOPTED PURSUANT TO REGULATIONS
PRESCRIBED BY THE SECRETARY OF THE TREASURY TO PRECLUDE THE
DISCRIMINATION PROHIBITED BY SECTION 401 (A) (4) OF THE INTERNAL REVENUE
CODE OF 1954. //POST, P. 938.//
(3) THE REQUIREMENTS OF SUBSECTION (A)(2) SHALL BE DEEMED TO BE
SATISFIED IN THE CASE OF A CLASS YEAR PLAN IF SUCH PLAN PROVIDES THAT
100 PERCENT OF EACH EMPLOYEE'S RIGHT TO OR DERIVED FROM THE
CONTRIBUTIONS OF THE EMPLOYER ON BEHALF WITH RESPECT TO ANY PLAN YEAR
ARE NONFORFEITABLE NOT LATER THAN THE END OF THE 5TH PLAN YEAR FOLLOWING
THE PLAN YEAR FOR WHICH SUCH CONTRIBUTIONS WERE MADE. FOR PUROSES OF
THIS PART, THE TERM "CLASS YEAR PLAN" MEANS A PROFIT SHARING, STOCK
BONUS, OR MONEY PRUCHASE PLAN WHICH PROVIDES FOR THE SEPARATE
NONFORFEITABILITY OF EMPLOYEES' RIGHTS TO RO DERIVED FROM THE
CONTRIBUTIONS FOR EACH PLAN YEAR.
(D) A PENSION PLAN MAY ALLOW FOR NONFORFEITABLE BENEFITS AFTER A
LESSER PERIOD AND IN GREATER AMOUNTS THAN ARE REQUIRED BY THIS PART.
SEC. 204. (A) EACH PENSION PLAN SHALL SATISFY THE REQUIREMENTS OF
SUBSECTION (B) (2), AND IN THE CASE OF ADEFINED BENEFIT PLAN SHALL ALSO
SATISFY THE REQUIREMENTS OF SUBSECTION (B) (1).
(B) (1) (A) A DEFINED BENEFIT PLAN SATISFIES THE REQUIREMENTS OF THIS
PARAGRAPH IF THE ACCRUED BENEFIT TO WHICH EACH PARTICIPANT IS ENTITLED
UPON HIS SEPARATION FROM THE SERVICE IS NOT LES THAN--,
(I) 3 PERCENT OF THE NORMAL RETIREMENT BENEFIT TO WHICH HE
WOULD BE ENTITLED AT THE NORMAL RETIREMENT AGE IF HE COMMENCED
PARTICIPATION AT THE EARLIEST POSSIBLE ENTRY AGE UNDER THE PLAN
AND SERVED CONTINUOUSLY UNTIL THE EARLIER OF AGE 65 OR THE NORMAL
RETIREMENT AGE SPECIFIED UNDER THE PLAN, MULTIPLIED BY
(II) THE NUMBER OF YEARS (NOT IN EXCESS OF 33 1/3) OF HIS
PARTICIPATION IN THE PLAN.
IN THE CASE OF A PLAN PROVIDING RETIREMENT BENEFITS BASED ON
COMPENSATION DURING ANY PERIOD, THE NORMAL RETIREMENT BENEFIT TO WHICH A
PARTICIPANT WOULD BE ENTITLED SHALL BE DETERMINED AS IF HE CONTINUED TO
EARN ANNUALLY THE AVERAGE RATE OF COMPENSATION WHICH HE EARNED DURING
CONSECUTIVE YEARS OF SERVICE, NOT IN EXCESS OF 10, FOR WHICH HIS
COMPENSATION WAS THE HIGHEST. FOR PURPOSES OF THIS SUBPARAGRAPH, SOCIAL
SECURITY BENEFITS AND ALL OTHER RELEVANT FACTORS USED TO COMPUTE
BENEFITS SHALL BE TREATED AS REMAINING CONSTANT AS OF THE CURRENT YEAR
FOR ALL YEARS AFTER SUCH CURRENT YEAR.
(B) A DEFINED BENEFIT PLAN SATISFIES THE REQUIREMENTS OF THIS
PARAGRAPH OF A PARTICULAR PLAN YEAR IF UNDER THE PLAN THE ACCRUED
BENEFIT PAYABLE AT THE NORMAL RETIREMENT AGE IS EQUAL TO THE NORMAL
RETIREMENT BENEFIT AND THE ANNUAL RATE AT WHICH ANY INDIVIDUAL WHO IS OR
COULD BE A PARTICIPANT CAN ACCRUE THE RETIREMENT BENEFITS PAYABLE AT
NORMAL RETIREMENT AGE UNDER THE PLAN FOR ANY LATER PLAN YEAR IS NOT MORE
THAN 133 1/3 PERCENT OF THE ANNUAL RATE AT WHICH HE CAN ACCRUE BENEFITS
FOR ANY PLAN YEAR BEGINNING ON OR AFTER SUCH PARTICULAR PLAN YEAR AND
BEFORE SUCH LATER PLAN. FOR PURPOSES OF THIS SUBPARAGRAPH--,
(I) ANY AMENDMENT TO THE PLAN WHICH IS IN EFFECT FOR THE
CURRENT YEAR SHALL BE TREATED AS IN EFFECT FOR ALL OTHER PLAN
YEARS;
(II) ANY CHANGE IN AN ACCRUAL RATE WHICH DOES NOT APPLY TO ANY
INDIVIDUAL WHO IS OR COULD BE A PARTICIPANT IN THE CURRENT YEAR
SHALL BE DISREGARDED;
(III) THE FACT THAT BENEFITS UNDER THE PLAN MAY BE PAYABLE TO
CERTAIN EMPLOYEES BEFORE NORMAL RETIREMENT AGE SHALL BE
DISREGARDED; AND
(IV) SOCIAL SECURITY BENEFITS AND ALL OTHER RELEVANT FACTORS
USED TO COMPUTE BENEFITS SHALL BE TREATED AS REMAINING CONSTANT AS
OF THE CURRENT YEAR FOR ALL YEARS AFTER THE CURRENT YEAR.
(C) A DEFINED BENEFIT PLAN SATISFIES THE REQUIREMENTS OF THIS
PARAGRAPH IF THE ACCRUED BENEFIT TO WHICH ANY PARTICIPANT IS ENTITLED
UPON HIS SEPARATION FROM THE SERVICES IS NOT LESS THAN A FRACTION OF THE
ANNUAL BENEFIT COMMENCING AT NORMAL RETIREMENT AGE TO WHICH HE WOULD BE
ENTITLED UNDER THE PLAN AS IN EFFECT ON THE DATE OF HIS SEPARATION IF HE
CONTINUED TO EARN ANNUALLY UNTIL NORMAL RETIREMENT AGE THE SAME RATE OF
COMPENSATION UPON WHICH HIS NORMAL RETIREMENT BENEFIT WOULD BE COMPUTED
UNDER THE PLAN, DETERMINED AS IF HE HAD ATTAINED NORMAL RETIREMENT AGE
ON THE DATE ANY SUCH DETERMINATION IS MADE (BUT TAKING INTO ACCOUNT NO
MORE THAN THE 10 YEARS OF SERVICE IMMEDIATELY PRECEDING HIS SEPARATION
FROM SERVICE). SUCH FRACTION SHALL BE A FRACTION, NOT EXCEEDING 1, THE
NUMERATOROF WHICH IS THE TOTAL NUMBER OF HIS YEARS OF PARTICIPATION IN
THE PLAN (AS OF THE DATE OF HIS SEPARATION FROM THE SERVICE) AND THE
DENOMINATOR OF WHICH IS THE TOTAL NUMBER OF YEARS HE WOULD HAVE
PARTICIPATED IN THE PLAN IF HE SEPARATED FROM THE SERVICE AT THE NORMAL
RETIREMENT AGE. FOR PURPOSES OF THIS SUBPARAGRAPH, SOCIAL SECURITY
BENEFITS AND ALL OTHER RELEVANT FACTORS USED TO COMPUTE BENEFITS SHALL
BE TREATED AS REMAINING CONSTANT AS OF THE CURRENT YEAR FOR ALL YEARE
AFTER SUCH CURRENT YEAR.
(D) SUBPARAGRAPHS (A), (B), AND (C) SHALL NOT APPLY WITH RESPECT TO
YEARS OF PARTICIPATION BEFORE THE FIRST PLAN YEAR TO WHICH THIS SECTION
APPLIES BUT A DEFINED BENEFIT PLAN SATISFIES THE REQUIREMENTS OF THIS
SUBPARAGRAPH WITH RESPECT TO SUCH YEARS OF PARTICIPATION ONLY IF THE
ACCRUED BENEFIT OF ANY PARTICIPANT WITH RESPECT TO SUCH YEARS OF
PARTICIPATION IS NOT LESS THAN THE GREATER OF--,
(I) HIS ACCRUED BENEFIT DETERMINED UNDER THE PLAN, AS IN EFFECT
FROM TIME TO TIME PRIOR TO THE DATE OF THE ENACTMENT OF THIS ACT,
OR
(II) AN ACCRUED BENEFIT WHICH IS NOT LESS THAN ONE-HALF OF THE
ACCRUED BENEFIT TO WHICH SUCH PARTICIPANT WOULD HAVE BEEN ENTITLED
IF SUBPARAGRAPH (A), (B), OR (C) APPLIED WITH RESPECT TO SUCH
YEARS OF PARTICIPATION.
(E) NOTWITHSTANDING SUBPARAGRAPHS (A), (B), AND (C) OF THIS
PARAGRAPH, A PLAN SHALL NOT BE TREATED AS NOT SATISFYING THE
REQUIREMENTS OF THIS PARAGRAPH SOLELY BECAUSE THE ACCRUAL OF BENEFITS
UNDER THE PLAN DOES NOT BECOME EFFECTIVE UNTIL THE EMPLOYEE HAS TWO
CONTINUOUS YEARS OF SERVICE. FOR PURPOSES OF THIS SUBPARAGRAPH, THE
TERM "YEARS OF SERVICE" HAS THE MEANING PROVIDED BY SECTION 203(A) (3)
(A).
(F) NOTWITHSTANDING SUBPARAGRAPHS (A), (B), AND (C), A DEFINED
BENEFIT PLAN SATISFIES THE REQUIREMENTS OF THIS PARAGRAPH IF SUCH
PLAN--,
(I) IS FUNDED EXCLUSIVELY BY THE PURCHASE OF INSURANCE
CONTRACTS, AND
(II) SATISFIES THE REQUIREMENTS OF PARAGRAPHS (2) AND (3) OF
SECTION 301(B) (RELATING TO CERTAIN INSURANCE CONTRACT PLANS),
BUT ONLY IF AN EMPLOYEE'S ACCRUED BENEFIT AS OF ANY APPLICABLE DATE IS
NOT LESS THAN THE CASH SURRENDER VALUE HIS INSURANCE CONTRACTS WOULD
HAVE ON SUCH APPLICABLE DATE IF THE REQUIREMENTS OF PARAGRAPHS (4), (5),
AND (6) OF SECTION 301(B) WERE SATISFIED.
(G) NOTWITHSTANDING THE PRECEDING SUBPARAGRAPHS, A DEFINED BENEFIT
PLAN SHALL BE TREATED AS NOT SATISFYING THE REQUIREMENTS OF THIS
PARAGRAPH IF THE PARTICIPANT'S ACCRUED NENEFIT IS REDUCED ON ACCOUNT OF
ANY INCREASE IN HIS AGE OR SERVICE. THE PRECEDING SENTENCE SHALL NOT
APPLY TO BENEFITS UNDER THE PLAN COMMENCING BEFORE BENEFITS PAYABLE
UNDER TITLE II OF THE SOCIAL SECURITY ACT //42 USC 401.// WHICH BENEFITS
UNDER THE PLAN--,
(I) DO NOT EXCEED SOCIAL SECURITY BENEFITS, AND
(II) TERMINATE WHEN SUCH SOCIAL SECURITY BENEFITS COMMENCE.
(2) A PLAN SATISFIES THE REQUIREMENTS OF THIS PARAGRAPH IF--,
(A) IN THE CASE OF A DEFINED BENEFIT PLAN, THE PLAN REQUIRES
SEPARATE ACCOUNTING FOR THE PORTION OF EACH EMPLOYEE'S ACCRUED
BENEFIT DERIVED FROM ANY VOLUNTARY EMPLOYEE CONTRIBUTIONS
PERMITTED UNDER THE PLAN; AND
(B) IN THE CASE OF ANY PLAN WHICH IS NOT A DEFINED BENEFIT
PLAN, THE PLAN REQUIRES SEPARATE ACCOUNTING FOR EACH EMPLOYEE'S
ACCRUED BENEFIT.
(3) (A) FOR PURPOSES OF DETERMINING AN EMPLOYEE'S ACCRUED BENEFIT,
THE TERM "YEAR OF PARTICIPATION" MEANS A PERIOD OF SERVICE (BEGINNING AT
THE EARLIEST DATE ON WHICH THE EMPLOYEE IS A PARTICIPANT IN THE PLAN AND
WHICH IS INCLUDED IN A PERIOD OF SERVICE REQUIRED TO BE TAKEN INTO
ACCOUNT UNDER SECTION 202(B) AS DETERMINED UNDER REGULATIONS PRESCRIBED
BY THE SECRETARY WHICH PROVIDE FOR THE CALCULATION OF SUCH PERIOD ON ANY
REASONABLE AND CONSISTENT BASIS.
(B) FOR PURPOSES OF THIS PARAGRAPH, EXCEPT AS PROVIDED IN
SUBPARAGRAPH (C), IN THE CASE OF ANY EMPLOYEE WHOSE CUSTOMARY EMPLOYMENT
IS LESS THAN FULL TIME, THE CALCULATION OF SUCH EMPLOYEE'S SERVICE ON
ANY BASIS WHICH PROVIDES LESS THAN A RATABLE PORTION OF THE ACCRUED
BENEFIT TO WHICH HE WOULD BE ENTITLED UNDER THE PLAN IF HIS CUSTOMARY
EMPLOYMENT WERE FULL TIME SHALL NOT BE TREATED AS MADE ON A REASONABLE
AND CONSISTENT BASIS.
(C) FOR PURPOSES OF THIS PARAGRAPH, IN THE CASE OF ANY EMPLOYEE WHOSE
SERVICE IS LESS THAN 1,000 HOURS DURING ANY CALENDAR YEAR, PLAN YEAR OR
OTHER 12-CONSECUTIVE-MONTH PERIOD DESIGNATED BY THE PLAN (AND NOT
PROHIBITED UNDER REGULATIONS PRESCRIBED BY THE SECRETARY) THE
CALCULATION OF HIS PERIOD OF SERVICE SHALL NOT BE TREATED AS NOT MADE ON
A REASONABLE AND CONSISTENT BASIS MERELY BECAUSE SUCH SERVICE IS NOT
TAKEN INTO ACCOUNT.
(D) IN THE CASE OF ANY SEASONAL INDUSTRY WHERE THE CUSTOMARY PERIOD
OF EMPLOYMENT IS LESS THAN 1,000 HOURS DURING A CALENDAR YEAR, THE TERM
"YEAR OF PARTICIPATION" SHALL BE SUCH PERIOD AS DETERMINED UNDER
REGULATIONS PRESCRIBED BY THE SECRETARY.
(E) FOR PURPOSES OF THIS SUBSECTION IN THE CASE OF ANY MARITIME
INDUSTRY, 125 DAYS OF SERVICE SHALL BE TREATED AS A YEAR OF
PARTICIPATION. THE SECRETARY MAY PRESCRIBE REGULATIONS TO CARRY OUT THE
PURPOSES OF THIS SUBPARAGRAPH.
(C) (1) FOR PURPOSES OF THIS SECTION AND SECTION 203 AN EMPLOYEE'S
ACCRUED BENEFIT DERIVED FROM EMPLOYER CONTRIBUTIONS AS OF ANY APPLICABLE
DATE IS THE EXCESS (IF ANY) OF THE ACCRUED BENEFIT FOR SUCH EMPLOYEE AS
OF SUCH APPLICABLE DATE OVER THE ACCRUED BENEFIT DERIVED FROM
CONTRIBUTIONS MADE BY SUCH EMPLOYEE AS OF SUCH DATE.
(2) (A) IN THE CASEOF A PLAN OTHER THAN A DEFINED BENEFIT PLAN, THE
ACCRUED BENEFIT DERIVED FROM CONTRIBUTIONS MADE BY AN EMPLOYEE AS OF ANY
APPLICABLE DATE IS--,
(I) EXCEPT AS PROVIDED IN CLAUSE (II), THE BALANCE OF THE
EMPLOYEE'S SEPARATE ACCOUNTANT CONSISTING ONLY OF HIS
CONTRIBUTIONS AND THE INCOME, EXPENSES, GAINS, AND LOSSES
ATTRIBUTABLE THERETO, OR
(II) IF A SEPARATE ACCOUNT IS NOT MAINTAINED WITH RESPECT TO AN
EMPLOYEE'S CONTRIBUTIONS UNDER SUCH A PLAN, THE AMOUNT WHICH BEARS
THE SAME RATIO TO HIS TOTAL ACCRUED BENEFIT AS THE TOTAL AMOUNT OF
THE EMPLOYEE'S CONTRIBUTIONS (LESS WITHDRAWALS) BEARS TO THE SUM
OF SUCH CONTRIBUTIONS AND THE CONTRIBUTIONS MADE ON HIS BEHALF BY
THE EMPLOYER (LESS WITHDRAWALS).
(B) (I) IN THE CASE OF A DEFINED BENEFIT PLAN PROVIDING AN ANNUAL
BENEFIT IN THE FORM OF A SINGLE LIFE ANNUITY (WITHOUT ANCILLARY
BENEFITS) COMMENCING AT NORMAL RETIREMENT AGE, THE ACCRUED BENEFIT
DERIVED FROM CONTRIBUTIONS MADE BY AN EMPLOYEE AS OF ANY APPLICABLE DATE
IS THE ANNUAL BENEFIT EQUAL TO THE EMPLOYEE'S ACCUMULATED CONTRIBUTIONS
MULTIPLIED BY THE APPROPRIATED CONVERSION FACTOR.
(II) FOR PURPOSES OF CLAUSE (I), THE TERM "APPROPRIATE CONVERSION
FACTOR" MEANS THE FACTOR NECESSARY TO CONVERT AN AMOUNT EQUAL TO THE
ACCUMULATED CONTRIBUTIONS TO A SINGLE LIFR ANNUITY (WITHOUT ANCILLARY
BENEFITS) COMMENCING AT NORMAL RETIREMENT AGE AND SHALL BE 10 PERCENT
FOR A NORMAL RETIREMENT AGE OF 65 YEARS. FOR OTHER NORMAL RETIREMENT
AGES THE CONVERSION FACTOR SHALL BE DETERMINED IN ACCORDANCE WITH
REGULATIONS PRESCRIBED BY THE SECRETARY OF THE TREASURY OF HIS DELEGATE.
(C) FOR PURPOSES OF THIS SUBSECTION, THE TERM "ACCUMULATED
CONTRIBUTIONS" MEANS THE TOTAL OF--,
(I) ALL MANDATORY CONTRIBUTIONS MADE BY THE EMPLOYEE,
(II) INTEREST (IF ANY) UNDER THE PLAN TO THE END OF THE LAST
PLAN YEAR TO WHICH SECTION 203(A) (2) DOES NOT APPLY (BY REASON OF
THE APPLICABLE EFFECTIVE DATE), AND
(III) INTEREST ON THE SUM OF THE AMOUNTS DETERMINED UNDER
CLAUSES (I) AND (II) COMPOUNDED ANNUALLY AT THE RATE OF 5 PERCENT
PER ANNUM FROM THE BEGINNING OF THE FIRST PLAN YEAR TO WHICH
SECTION 203(A) (2) APPLIES (BY REASON OF THE APPLICABLE EFFECTIVE
DATE) TO THE DATE UPON WHICH THE EMPLOYEE WOULD ATTAIN NORMAL
RETIREMENT AGE.
FOR PURPOSES OF THIS SUBPARAGRAPH, THE TERM, "MANDATORY CONTRIBUTIONS"
MEANS AMOUNTS CONTRIBUTED TO THE PLAN BY THE EMPLOYEE WHICH ARE REQUIRED
AS A CONDITION OF EMPLOYMENT, AS A CONDITION OF PARTICIPATION IN SUCH
PLAN, OR AS A CONDITION OF OBTAINING BENEFITS UNDER THE PLAN
ATTRIBUTABLE TO EMPLOYER CONTRIBUTIONS.
(D) THE SECRETARY OF THE TREASURY IS AUTHORIZED TO ADJUST BY
REGULATION THE CONVERSION FACTOR DESCRIBED IN SUBPARAGRAPH (B), THE RATE
OF INTEREST DESCRIBED IN CLAUSE (III) OF SUBPARAGRAPH (C), OR BOTH, FROM
TIME TO TIME AS HE MAY DEEM NECESSARY. THE RATE OF INTEREST SHALL BEAR
THE RELATIONSHIP TO 5 PERCENT WHICH THE SECRETARY OF THE TREASURY
DETERMINES TO BE COMPARABLE TO THE RELATIONSHIP WHICH THE LONG-TERM
MONEY RATES AND INVESTMENT YIELDS FOR THE LAST PERIOD OF 10 CALENDAR
YEARS ENDING AT LEAST 12 MONTHS BEFORE THE BEGINNING OF THE PLAN YEAR
BEAR TO THE LONG-TERM MONEY RATES AND INVESTMENT YIELDS FOR THE
10-CALENDAR YEAR PERIOD 1964 THROUGH 1973. NO SUCH ADJUSTMENT SHALL BE
EFFECTIVE FOR A PLAN YEAR BEGINNING BEFORE THE EXPIRATION OF ! YEAR
AFTER SUCH ADJUSTMENT IS DETERMINED AND PUBLISHED.
(E) THE ACCRUED BENEFIT DERIVED FROM EMPLOYEE CONTRIBUTIONS SHALL NOT
EXCEED THE GREATER OF--,
(I) THE EMPLOYEE'S ACCRUED BENEFIT UNDER THE PLAN, OR
(II) THE ACCRUED BENEFIT DERIVED FROM EMPLOYEE CONTRIBUTIONS
DETERMINED AS THOUGHTHE AMOUNTS CALCULATED UNDER CLAUSES (II) AND
(III) OF SUBPARAGRAPH (C) WERE ZERO.
(3) FOR PURPOSES OF THIS SECTION, IN THE CASE OF ANY DEFINED BENEFIT
PLAN, IF AN EMPLOYEE'S ACCRUED BENEFIT IS TO BE DETERMINED AS AN AMOUNT
OTHER THAN AN ANNUAL BENEFIT COMMENCING AT A NORMAL RETIREMENT AGE, OR
IF THE ACCRUED BENEFIT DERIVED FROM CONTRIBUTIONS MADE BY AN EMPLOYEE IS
TO BE DETERMINED WITH RESPECT TO A BENEFIT OTHER THAN AN ANNUAL BENEFIT
IN THE FORM OF A SINGLE LIFE ANNUITY (WITHOUT ANCILLARY BENEFITS)
COMMENCING AT NORMAL RETIREMENT AGE, THE EMPLOYEE'S ACCRUED BENEFIT, OR
THE ACCRUED BENEFITS DERIVEDFROM CONTRIBUTIONS MADE BY AN EMPLOYEE, AS
THE CASE MAY BE, SHALL BE THE ACTUARIAL EQUIVALENT OF SUCH BENEFIT OR
AMOUNT DETERMINED UNDER PARAGRAPH (1) OR (2).
(4) IN THE CASE OF A DEFINED BENEFIT PLAN WHICH PERMITS VOLUNTARY
EMPLOYEE CONTRIBUTIONS, THE PORTION OF AN EMPLOYEE'S ACCRUED BENEFIT
DERIVED FROM EMPLOYEE CONTRIBUTIONS UNDER A PLAN OTHER THAN A DEFINED
BENEFIT PLAN.
(D) NOTWITHSTANDING SECTION 203(B) (1), FOR PURPOSES OF DETERMINING
THE EMPLOYEE'S ACCRUED BENEFIT UNDER THE PLAN, THE PLAN MAY DISREGARD
SERVICE PERFORMED BY THE EMPLOYEE WITH RESPECT TO WHICH HE HAS
RECEIVED--,
(1) A DISTRIBUTION OF THE PRESENT VALUE OF HIS ENTIRE
NONFORFEITABLE BENEFIT IF SUCH DISTRIBUTION WAS IN AN AMOUNT (NOT
MORE THAN $1,750) PERMITTED UNDER REGULATION PRESCRIBED BY THE
SECRETARY OF THE TREASURY, OR
(2) A DISTRIBUTION OF THE PRESENT VALUE OF HIS NONFORFEITABLE
BENEFIT ATTRIBUTABLE TO SUCH SERVICE WHICH HE ELECTED TO RECEIVE.
PARAGRAPH (1) SHALL APPLY ONLY IF SUCH DISTRIBUTION WAS MADE ON
TERMINATION OF THE EMPLOYEE'S PARTICIPATION IN THE PLAN. PARAGRAPH (2)
SHALL APPLY ONLY IF SUCH DISTRIBUTION WAS MADE ON TERMINATION OF THE
EMPLOYEE'S PARTICIPATION IN THE PLAN OR UNDER SUCH OTHER CIRCUMSTANCES
AS MAY BE PROVIDED UNDER REGULATIONS PRESCRIBED BY THE SECRETARY OF THE
TREASURY.
(E) FOR PURPOSES OF DETERMINING THE EMPLOYEE'S ACCRUED BENEFIT, THE
PLAN SHALL NOT DISREGARD SERVICE AS PROVIDED IN SUBSECTION (D) UNLESS
THE PLAN PROVIDES AN OPPORTUNITY FOR THE PARTICIPANT TO REPAY THE FULL
AMOUNT OF A DISTRIBUTION DESCRIBED IN SUBSECTION (D) WITH, IN THE CASE
OF A DEFINED BENEFIT PLAN, INTEREST AT THE RATE DETERMINED FOR PURPOSES
OF SUBSECTION (C) (2) (C) AND PROVIDES THAT UPON SUCH REPAYMENT THE
EMPLOYEE'S ACCRUED BENEFIT SHALL BE RECOMPUTED BY TAKING INTO ACCOUNT
SERVICE SO DISREGARDED. THIS SUBSECTION SHALL APPLY ONLY IN THE CASE OF
A PARTICIPANT WHO--,
(1) RECEIVED SUCH A DISTRIBUTION IN ANY PLAN YEAR TO WHICH THIS
SECTION APPLIES, WHICH DISTRIBUTION WAS LESS THAN THE PRESENT
VALUE OF HIS ACCRUED BENEFIT,
(2) RESUMES EMPLOYMENT COVERED UNDER THE PLAN, AND
(3) REPAYS THE FULL AMOUNT OF SUCH DISTRIBUTION WITH, IN THE
CASE OF DEFINED BENEFIT PLAN, INTEREST AT THE RATE DETERMINED FOR
PURPOSES OF SUBSECTION (C)(2)(C). IN THE CASE OF A DEFINED
CONTRIBUTION PLAN, THE PLAN PROVISION REQUIRED UNDER THIS SUBSECTION MAY
PROVIDE THAT SUCH REPAYMENT MUST BE MADE BEFORE THE PARTICIPANT HAS ANY
1-YEAR BREAK IN SERVICE COMMENCING AFTER SUCH WITHDRAWAL.
(F) FOR THE PURPOSES OF THIS PART, AN EMPLOYER SHALL BE TREATED AS
MAINTAINING A PLAN IF ANY EMPLOYEE OF SUCH EMPLOYER ACCRUES BENEFITS
UNDER SUCH PLAN BY REASON OF SERVICE WITH SUCH EMPLOYER.
(G) THE ACCRUED BENEFIT OF A PARTICIPANT UNDER A PLAN MAY NOT BE
DECREASED BY AN AMENDMENT OF THE PLAN, OTHER THAN AN AMENDMENT DESCRIBED
IN SECTION 302(C) (8).
(H) CROSS REFERENCE.--,
FOR SPECIAL RULES RELATING TO CLASS YEAR PLANS AND PLAN PROVISIONS
ADOPTED TO PRECLUDE DISCRIMINATION, SEE SECTION 203(C) (2) AND (3).
SEC. 205. (A) IF A PENSION PLAN PROVIDES FOR THE PAYMENT OF BENEFITS
IN THE FORM OF AN ANNUITY, SUCH PLAN SHALL PROVIDE FOR THE PAYMENT OF
ANNUITY BENEFITS IN A FORM HAVING THE EFFECT OF A QUALIFIED JOINT AND
SURVIVOR ANNUITY.
(B) IN THE CASE OF A PLAN WHICH PROVIDES FOR THE PAYMENT OF BENEFITS
BEFORE THE NORMAL RETIREMENT AGE AS DEFINED IN SECTION 3(24), THE PLAN
IN NOT REQUIRED TO PROVIDE FOR THE PAYMENT OF ANNUITY BENEFITS IN A FORM
HAVING THE EFFECT OF A QUALIFIED JOINT AND SURVIVOR ANNUITY DURING THE
PERIOD BEGINNING ON THE DATE ON WHICH THE EMPLOYEE ENTERS INTO THE PLAN
AS A PARTICIPANT AND ENDING ON THE LATER OF--,
(1) THE DATE THE EMPLOYEE REACHES THE EARLIEST RETIREMENT AGE,
OR
(2) THE FIRST DAY OF THE 120TH MONTH BEGINNING BEFORE THE DATE
ON WHICH THE EMPLOYEE REACHES NORMAL RETIREMENT AGE.
(C)(1) A PLAN DESCRIBED IN SUBSECTION (B) DOES NOT MEET THE
REQUIREMENTS OF SUBSECTION (A) UNLESS, UNDER THE PLAN, A PARTICIPANT HAS
A REASONABLE PERIOD IN WHICH HE MAY ELECT THE DISQUALIFIED JOINT AND
SURVIVOR ANNUITY FORM WITH RESPECT TO THE PERIOD BEGINNING ON THE DATE
ON WHICH THE PERIOD DESCRIBED IN SUBSECTION (B) ENDS AND ENDING ON THE
DATE ON WHICH HE REACHES NORMAL RETIREMENT AGE IF HE CONTINUES HIS
EMPLOYMENT DURING THAT PERIOD.
(2) A PLAN DOES NOT MEET THE REQUIREMENTS OF THIS SUBSECTION UNLESS,
IN THE CASE OF SUCH ELECTION, THE PAYMENTS UNDER THE SURVIVOR ANNUITY
ARE NOT LESS THAN THE PAYMENTS WHICH WOULD HAVE BEEN MADE UNDER THE
JOINT ANNUITY TO WHICH THE PARTICIPANT WOULD HAVE BEEN ENTITLED IF HE
HAD MADE AN ELECTION UNDER THIS SUBSECTION IMMEDIATELY PRIOR TO HIS
RETIREMENT AND IF HIS RETIREMENT HAD OCCURRED ON THE DATE IMMEDIATELY
PRECEDING THE DATE OF HIS DEATH AND WITHIN THE PERIOD WITHIN WHICH AN
ELECTION CAN BE MADE.
(D) A PLAN SHALL NOT BE TREATED AS NOT SATISFYING THE REQUIREMENTS OF
THIS SECTION SOLELY BECAUSE THE SPOUSE OF THE PARTICIPANT IS NOT
ENTITLED TO RECEIVE A SURVIVOR ANNUITY (WHETHER OR NOT AN ELECTION HAS
BEEN MADE UNDER SUBSECTION (C)) UNLESS THE PARTICIPANT AND HIS SPOUSE
HABE BEEN MARRIED THROUGHOUT THE 1-YEAR PERIOD ENDING ON THE DATE OF
SUCH PARTICIPANT'S DEATH.
(E) A PLAN SHALL NOT BE TREATED AS SATISFYING THE REQUIREMENTS OF
THIS SECTION UNLESS, UNDER THE PLAN, EACH PARTICIPANT HAS A REASONABLE
PERIOD (AS PRESCRIBED BY THE SECRETARY OF THE TREASURY BY REGULATIONS)
BEFORE THE ANNUITY STARTING DATE DURING WHICH HE MAY ELECT IN WRITING
(AFTER HAVING RECEIVED A WRITTEN EXPLANATION OF THE TERMS AND CONDITIONS
OF THE JOINT AND SURVIVOR ANNUITY AND THE EFFECT OF AN ELECTION UNDER
THIS SUBSECTION) NOT TO TAKE SUCH JOINT AND SURVIVOR ANNUITY.
(F) A PLAN SHALL NOT BE TREATED AS NOT SATISFYING THE REQUIREMENTS OF
THIS SECTION SOSELY BECAUSE, UNDER THE PLAN THERE IS A PROVISION THAT
ANY ELECTION UNDER SUBSECTION (C) OR (E), AND ANY REVOCATION OF ANY SUCH
ELECTION, DOES NOT BECOME EFFECTIVE(OR CEASES TO BE EFFECTIVE) IF THE
PARTICIPANT DIES WITHIN A PERIOD (NOT IN EXCESS OF 2 YEARS) BEGINNING ON
THE DATE OF SUCH ELECTION OR REVOCATION, AS THE CASE MAY BE. THE
PRECEDING SENTENCE DOES NOT APPLY UNLESS THE PLAN PROVISION DESCRIBED IN
THE PRECEDING SENTENCE ALSO PROVIDES THAT SUCH AN ELECTION OR REVOCATION
WILL BE GIVEN EFFECT IN ANY CASE IN WHICH--,
(1) THE PARTICIPANT DIES FROM ACCIDENTAL CAUSES,
(2) A FAILURE TO GIVE EFFECT TO THE ELECTION OR REVOCATION
WOULD DEPRIVE THE PARTICIPANT'S SURVIVOR OF A SURVIVOR ANNUITY,
AND
(3) SUCH ELECTION OR REVOCATION IS MADE BEFORE SUCH ACCIDENT
OCCURRED.
(G) FOR PURPOSES OF THIS SECTION:
(1) THE TERM "ANNUITY STARTING DATE" MEANS THE FIRST DAY OF THE
FIRST PERIOD FOR WHICH AN AMOUNT IS RECEIVED AS AN ANNUITY
(WHETHER BY REASON OR RETIREMENT OR BY REASON OF DISABILITY).
(2) THE TERM "EARLIEST RETIREMENT AGE" MEANS THE EARLIEST DATE
ON WHICH, UNDER THE PLAN, THE PARTICIPANT COULD ELECT TO RECEIVE
RETIREMENT BENEFITS.
(3) THE TERM "QUALIFIED JOINT AND SURVIVOR ANNUITY" MEANS AN
ANNUITY FOR THE LIFE OF THE PARTICIPANT WITH A SURVIVOR ANNUITY
FOR THE LIFE OF HIS SPOUSE WHICH IS NOT LESS THAN ONE-HALF OF, OR
GREATER THAN, THA AMOUNT OF THE ANNUITY PAYABLE DURING THE JOINT
LIVES OF THE PARTICIPANT AND HIS SPOUSE AND WHICH IS THE ACTUARIAL
EQUIVALENT OF A SINGLE ANNUITY FOR THE LIFE OF THE PARTICIPANT.
(H) FOR THE PURPOSES OF THIS SECTION, A PLAN MAY TAKE INTO ACCOUNT IN
ANY EQUITABLE FASHION (AS DETERMINED BY THE SECRETARY OF THE TREASURY)
ANY INCREASED COSTS RESULTING FROM PROVIDING JOINT AND SURVIVOR ANNUITY
BENEFITS UNDER AN ELECTION MADE UNDER SUBSECTION (C).
(I) THIS SECTION SHALL APPLY ONLY IF--,
(1) THE ANNUITY STARTING DATE DID NOT OCCUR BEFORE THE
EFFECTIVE DATE OF THIS SECTION, AND
(2) THE PARTICIPANT WAS AN ACTIVE PARTICIPANT IN THE PLAN ON OR
AFTER SUCH EFFECTIVE DATE.
SEC. 206. (A) EACH PENSION PLAN SHALL PROVIDE THAT UNLESS THE
PARTICIPANT OTHERWISE ELECTS, THE PAYMENT OF BENEFITS UNDER THE PLAN TO
THE PARTICIPANT SHALL BEGIN NOT LATER THAN THE 60TH DAY AFTER THE LATEST
OF THE CLOSE OF THE PLAN YEAR IN WHICH--,
(1) THE DATE ON WHICH THE PARTICIPANT ATTAINS THE EARLIER OF
AGE 65 OR NORMAL RETIREMENT AGE SPECIFIED UNDER THE PLAN,
(2) OCCURS THE 10TH ANNIVERSARY OF THE YEAR IN WHICH THE
PARTICIPANT COMMENCED PARTICIPATION IN THE PLAN, OR
(3) THE PARTICIPANT TERMINATES HIS SERVICE WITH THE
EMPLOYER.
IN THE CASE OF A PLAN WHICH PROVIDES FOR THE PAYMENT OF AN EARLY
RETIREMENT BENEFIT, SUCH PLAN SHALL PROVIDE THAT A PARTICIPANT WHO
SATISFIED THE SERVICE REQUIREMENTS FOR SUCH EARLY RETIREMENT BENEFIT,
BUT SEPARATED FROM THE SERVICE (WITH ANY NONFORFEITABLE RIGHT TO AN
ACCRUED BENEFIT) BEFORE SATISFYING THE AGE REQUIREMENT FOR SUCH EARLY
RETIREMENT BENEFIT, IS ENTITLED UPON SATISFACTION OF SUCH AGE
REQUIREMENT TO RECEIVE A BENEFIT NOT LESS THAN THE BENEFIT TO WHICH HE
WOULD BE ENTITLED AT THE NORMAL RETIREMENT AGE, ACTUARIALLY REDUCED
UNDER REGULATIONS PRESCRIBED BY THE SECRETARY OF THE TREASURY.
(B) IF--,
(1) A PARTICIPANT OR BENEFICIARY IS RECEIVING BENEFITS UNDER A
PENSION PLAN, OR
(2) A PARTICIPANT IS SEPARATED FROM THE SERVICE AND HAS
NONFORFEITABLE RIGHTS TO BENEFITS,
A PLAN MAY NOT DECREASE BENEFITS OF SUCH A PARTICIPANT BY REASON OF ANY
INCREASE IN THE BENEFIT LEVELS PAYABLE UNDER TITLE II OF THE SOCIAL
SECURITY ACT //42 USC 401.// OR THE RAILROAD RETIREMENT ACT OF 1937,
//45 USC 228A.// OR ANY INCREASE IN THE WAGE BASE UNDER SUCH TITLE II,
IF SUCH INCREASE TAKES PLACE AFTER THE DATE OF THE ENACTMENT OF SUCH
BENEFITS OR THE DATE OF SUCH SEPARATION.
(C) NO PENSION PLAN MAY PROVIDE THAT ANY PART OF A PARTICIPANT'S
ACCRUED BENEFIT DERIVED FROM EMPLOYER CONTRIBUTIONS (WHETHER OR NOT
OTHERWISE NONFORFEITABLE) IS FORFEITABLE SOLELY BECAUSE OF WITHDRAWAL BY
SUCH PARTICIPANT OF ANY AMOUNT ATTRIBUTABLE TO THE BENEFIT DERIVED FROM
CONTRIBUTIONS MADE BY SUCH PARTICIPANT. THE PRECEDING SENTENCE SHALL
NOT APPLY (!) TO THE ACCRUED BENEFIT OF ANY PARTICIPANT UNLESS, AT THE
TIME OF SUCH WITHDRAWAL, SUCH PARTICIPANT HAS A NONFORFEITABLE RIGHT TO
AT LEAST 50 PERCENT OF SUCH ACCRUED BENEFIT, OR (2) TO THE EXTENT THAT
AN ACCRUED BENEFIT IS PERMITTED TO BE FORFEITED IN ACCORDANCE WITH
SECTION 203(A) (3) (D) (III).
(D) (1) EACH PENSION PLAN SHALL PROVIDE THAT BENEFITS PROVIDED UNDER
THE PLAN MAY NOT BE ASSIGNED OR ALIENATED.
(2) FOR THE PURPOSES OF PARAGRAPH (1) OF THIS SUBSECTION, THERE SHALL
NOT BE TAKEN INTO ACCOUNT ANY VOLUNTARY AND REVOCABLE ASSIGNMENT OF NOT
TO EXCEED 10 PERCENT OF ANY BENEFIT PAYMENT, OR OF ANY IRREVOCABLE
ASSIGNMENT OR ALIENATION OF BENEFITS EXECUTED BEFORE THE DATE OF
ENACTMENT OF THIS ACT. THE PRECEDING SENTENCE SHALL NOT APPLY TO ANY
ASSIGNMENT OR ALIENATION MADE FOR THE PURPOSES OF DEFRAYING PLAN
ADMINISTRATION COSTS. FOR PURPOSES OF THIS PARAGRAPH A LOAN MADE TO A
PARTICIPANT OR BENEFICIARY SHALL NOT BE TREATED AS AN ASSIGNMENT OR
ALIENATION IF SUCH LOAN IS SECURED BY THE PARTICIPANT'S ACCRUED
NONFORFEITABLE BENEFIT AND IS EXEMPT FROM THE TAX IMPOSED BY SECTION
4975 OF THE INTERNAL REVENUE CODE OF 1954 (RELATING TO TAX ON PROHIBITED
TRANSACTIONS) BY REASON OF SECTION 4975(D)(1) OF SUCH CODE. //POST, P.
971.//
SEC. 207. IN THE CASE ANY PLAN MAINTAINED ON JANUARY 1, 1974, IF,
NOT LATER THAN 2 YEARS AFTER THE DATE OF ENACTMENT OF THIS ACT, THE
ADMINISTRATOR PETITIONS THE SECRETARY, THE SECRETARY MAY PRESCRIBE AN
ALTERNATE METHOD WHICH SHALL BE TREATED AS SATISFYING THE REQUIREMENTS
OF SECTION 203(A)(2) OR 204(B)(1) (OTHER THAN SUBPARAGRAPH (D) THEREOF)
OR BOTH FOR A PERIOD OF NOT MORE THAN 4 YEARS. THE SECRETARY MAY
PRESCRIBE SUCH ALTERNATE METHOD ONLY WHEN HE FINDS THAT--,
(1) THE APPLICATION OF SUCH REQUIREMENTS WOULD INCREASE THE
COSTS OF THE PLAN TO SUCH AN EXTENT THAT THERE WOULD RESULT A
SUBSTATANTIAL RISK TO THE VOLUNTARY CONTINUATION OF THE PLAN OR A
SUBSTANTIAL CURTAILMENT OF BENEFIT LEVELS OR THE LEVELS OF
EMPLOYEES' COMPENSATION,
(2) THE APPLICATION OF SUCH REQUIREMENTS OR DISCONTINUANCE IN
THE AGGREGATE, AND
(3) A WAIVER OR EXTENSION OF TIME GRANTED UNDER SECTION 303 OR
304 OF THIS ACT WOULD BE INADEQUATE. //POST, PP. 872, 873.//
IN THE CASE OF ANY PLAN WITH RESPECT TO WHICH AN ALTERNATE METHOD HAS
BEEN PRESCRIBED UNDER THE PRECEDING PROVISIONS OF THIS SUBSECTION FOR A
PERIOD OF NOT MORE THAN 4 YEARS, IF, NOT LATER THAN ! YEAR BEFORE THE
EXPIRATION OF SUCH PERIOD, THE ADMINISTRATOR PETITIONS THE SECRETARY FOR
AN EXTENSION OF SUCH ALTERNATE METHOD, AND THE SECRETARY MAKES THE
FINDINGS REQUIRED BY THE PRECEDING SENTENCE, SUCH ALTERNATE METHOD MAY
BE EXTENDED FOR NOT MORE THAN 3 YEARS.
SEC. 208. A PENSION PLAN AMY NOT MERGE OR CONSOLIDATE WITH, OR
TRANSFER ITS ASSETS OR LIABILITIES TO, ANY OTHER PLAN AFTER THE DATE OF
THE ENACTMENT OF THIS ACT, UNLESS EACH PARTICIPANT IN THE PLAN WOULD (IF
THE PLAN THEN TERMINATED) RECEIVE A BENEFIT IMMEDIATELY AFTER THE
MERGER, CONSOLIDATION, OR TRANSFER WHICH IS EQUAL TO OR GREATER THAN THE
BENEFIT HE WOULD HAVE BEEN ENTITLED TO RECEIVE IMMEDIATELY BEFORE THE
MERGER, CONSOLIDATION, OR TRANSFER (IF THE PLAN HAD THEN TERMINATED).
THIS PARAGRAPH SHALL APPLY IN THE CASE OF A MULTIEMPLOYER PLAN ONLY TO
THE EXTENT DETERMINED BY THE PENSION BENEFIT GUARANTY CORPORATION.
SEC. 209. (A)(1) EXCEPT AS PROVIDED BY PARAGRAPH (2) EVERY EMPLOYER
SHALL, IN ACCORDANCE WITH REGULATIONS PRESCRIBED BY THE SECRETARY,
MAINTAIN RECORDS WITH RESPECT TO EACH OF HIS EMPLOYEES SUFFICIENT TO
DETERMINE THE BENEFITS DUE OR WHICH MAY BECOME DUE TO SUCH EMPLOYEES.
THE PLAN ADMINISTRATOR SHALL MAKE A REPORT, IN SUCH MANNER AND AT SUCH
TIME AS MAY BE PROVIDED IN REGULATIONS PRESCRIBED BY THE SECRETARY, TO
EACH EMPLOYEE WHO IS A PARTICIPANT UNDER THE PLAN AND WHO--,
(A) REQUESTS SUCH REPORT, IN SUCH MANNER AND AT SUCH TIME AS
MAY BE PROVIDED IN SUCH REGULATIONS,
(B) TERMINATES HIS SERVICE WITH THE EMPLOYER, OR
(C) HAS A 1-YEAR BREAK IN SERVICE (AS DEFINED IN SECTION 203
(B) (3) (A)). THE EMPLOYER SHALL FURNISH TO THE PLAN ADMINISTRATOR
THE INFORMATION NECESSARY FOR THE ADMINISTRATOR TO MAKE THE REPORTS
REQUIRED BY THE PRECEDING SENTENCE. NOT MORE THAN ONE REPORT SHALL BE
REQUIRED UNDER SUBPARAGRAPH (A) IN ANY 12-MONTH PERIOD. NOT MORE THAN
ONE REPORT SHALL BE REQUIRED UNDER SUBPARAGRAPH (C) WITH RESPECT TO
CONSECUTIVE 1-YEAR BREAKS IN SERVICE. THE REPORT REQUIRED UNDER THIS
PARAGRAPH SHALL BE SUFFICIENT TO INFORM THE EMPLOYEE OF HIS ACCRUED
BENEFITS UNDER THE PLAN AND THE PERCENTAGE OF SUCH BENEFITS WHICH ARE
NONFORFEITABLE UNDER THE PLAN.
(2) IF MORE THAN ONE EMPLOYER ADOPTS A PLAN, EACH SUCH EMPLOYER
SHALL, IN ACCORDANCEWITH REGULATIONS PRESCRIBED BY THE SECRETARY,
FURNISH TO THE PLAN ADMINISTRATOR THE INFORMATION NECESSARY FOR THE
ADMINISTRATOR TO MAINTAIN THE RECORDS AND MAKE THE REPORTS REQUIRED BY
PARAGRAPH (1). SUCH ADMINISTRATOR SHALL MAINTAIN THE RECORDS AND, TO
THE EXTENT PROVIDED UNDER REGULATION PRESCRIBED BY THE SECRETARY, MAKE
THE REPORTS, REQUIRED BY PARAGRAPH (1).
(B) IF ANY PERSON WHO IS REQUIRED, UNDER SUBSECTION (A), TO FURNISH
INFORMATION OR MAINTAIN RECORD FOR ANY PLAN YEAR FAILS TO COMPLY WITH
SUCH REQUIREMENT, HE SHALL PAY TO THE SECRETARY A CIVIL PENALTY OF $10
FOR EACH EMPLOYEE WITH RESPECT TO WHOM SUCH FAILURE OCCURS, UNLESS IT IS
SHOWN THAT SUCH FAILURE IS DUE TO REASONABLE CAUSE.
SEC. 210. (A) NOTWITHSTANDING ANY OTHER PROVISION OF THIS PART OR
PART 3, THE FOLLOWING PROVISIONS OF THIS SUBSECTION SHALL APPLY TO A
PLAN MAINTAINED BY MORE THAN ONE EMPLOYER:
(1) SECTION 202 SHALL BE APPLIED AS IF ALL EMPLOYEES OF EACH OF
THE EMPLOYERS WERE EMPLOYED BY A SINGLE EMPLOYER.
(2) SECTION 203 AND 204 SHALL BE APPLIED AS IF ALL SUCH
EMPLOYERS CONSTITUTED A SINGLE EMPLOYER, EXCEPT THAT THE
APPLICATION OF ANY RULES WITH RESPECT TO BREAKS IN SERVICE SHALL
BE MADE UNDER REGULATIONS PRESCRIBED BY THE SECRETARY.
(3) THE MINIMUM FUNDING STANDARD PROVIDED BY SECTION 302 SHALL
BE DETERMINED AS IF ALL PARIICIPANTS IN THE PLAN WERE EMPLOYED BY
A SINGLE EMPLOYER.
(B) FOR PURPOSES OF THIS PART AND PART 3--,
(1) IN ANY CASE IN WHICH THE EMPLOYER MAINTAINS A PLAN OF A
PREDECESSOR EMPLOYER, SERVICE FOR SUCH PREDECESSOR SHALL BE
TREATED AS SERVICE FOR THE EMPLOYER, AND
(2) IN ANY CASE IN WHICH THE EMPLOYER MAINTAINS A PLAN WHICH IS
NOT THE PLAN MAINTAINED BY A PREDECESSOR EMPLOYER, SERVICE FOR
SUCH PREDECESSOR SHALL, TO THE EXTENT PROVIDED IN REGULATIONS
PRESCRIBED BY THE SECRETARY OF THE TREASURY, BE TREATED AS SERVICE
FOR THE EMPLOYER.
(C) FOR PURPOSES OF SECTIONS 202, 203, AND 204, ALL EMPLOYEES OF ALL
CORPORATIONS WHICH ARE MEMBERS OF A CONTROLLED GROUP OF CORPORATIONS
(WITHIN THE MEANING OF SECTION 1563(A) OF THE INTERNAL REVENUE CODE //26
USC 1563.// OF 1954, DETERMINED WITHOUT REGARD TO SECTION 1563(A) (4)
AND (E) (3) (C) OF SUCH CODE) SHALL BE TREATED AS EMPLOYED BY A SINGLE
EMPLOYER. WITH RESPECT TO A PLAN ADOPTED BY MORE THAN ONE SUCH
CORPORATION , THE MINIMUM FUNDING STANDARD OF SECTION 302 SHALL BE
DETERMINED AS IF ALL SUCH EMPLOYERS WERE A SINGLE EMPLOYER, AND
ALLOCATED TO EACH EMPLOYER IN ACCORDANCE WITH REGULATIONS PRESCRIBED BY
THE SECRETARY OF THE TREASURY.
(D) FOR PURPOSES OF SECTIONS 202, 203, AND 204, UNDER REGULATIONS
PRESCRIBED BY THE SECRETARY, ALL EMPLOYEES OF TRADES OR BUSINESSES
(WHETHER OR NOT INCORPORATED) WHICH ARE UNDER COMMON CONTROL SHALL BE
TREATED AS EM EMPLOYED BY A SINGLE EMPLOYER. THE REGULATIONS PRESCRIBED
UNDER THIS SUBSECTION SHALL BE BASED ON PRINCIPLES SUMILAR TO THE
PRINCIPLES WHICH APPLY IN THE CASE OF SUBSECTION (C).
SEC. 211. (A) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, THIS
PART SHALL APPLY IN THE CASE OF PLAN YEARS BEGINNING AFTER THE DATE OF
THE ENACTMENT OF THIS ACT.
(B) (1) EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (D), SECTIONS 205,
206(D), AND 208 SHALL APPLY WITH RESPECT TO PLAN YEARS BEGINNING AFTER
DECEMBER 31, 1975.
(2) EXCEPT AS OTHERWISE PROVIDED IN SUBSECTIONS (C) AND (D) IN THE
CASE OF A PLAN IN EXISTENCE ON JANUARY 1, 1974, THIS PART SHALL APPLY IN
THE CASE OF PLAN YEARS BEGINNING AFTER DECEMBER 31, 1975.
(C)(1) IN THE CASE OF A PLAN MAINTAINED ON JAUNUARY 1, 1974, PURSUANT
TO ONE OR MORE AGREEMENTS WHICH THE SECRETARY FINDS TO BE COLLECTIVE
BARGAINING AGREEMENTS BETWEEN EMPLOYEE ORGANIZATIONS AND ONE OR MORE
EMPLOYERS, NO PLAN SHALL BE TREATED AS NOT MEETING THE REQUIREMENTS OF
SECTIONS 204 AND 205 SOLELY BY REASON OF A SUPPLEMENTARY OR SPECIAL PLAN
PROVISION (WITHIN THE MEANING OF PARAGRAPH (2)) FOR ANY PLAN YEAR BEFORE
THE YEAR WHICH BEGINS AFTER THE EARLIER OF--,
(A) THE DATE ON WHICH THE LAST OF SUCH AGREEMENTS RELATING TO
THE PLAN TERMINATES (DETERMINED WITHOUT REGARD TO ANY EXTENSION
THEREOF AGREED TO AFTER THE DATE OF THE ENACTMENT OF THIS ACT), OR
(B) DECEMBER 31, 1980.
FOR PURPOSES OF SUBPARAGRAPH (A) AND SECTION 306(C), ANY PLAN AMENDMENT
MADE PURSUANT TO A COLLECTIVE BARGAINING AGREEMENT RELATING TO THE PLAN
WHICH AMENDS THE PLAN SOLELY TO CONFORM TO ANY REQUIREMENT CONTAINED IN
THIS ACT OR THE INTERNAL REVENUE CODE OF 1954 //68A STAT. 3, 26 USC 1 ET
SEQ.// SHALL NOT BE TREATED AS A TERMINATION OF SUCH COLLECTIVE
BARGAINING AGREEMENT. THIS PARAGRAPH SHALL NOT APPLY UNLESS THE
SECRETARY DETERMINES THAT THE PARTICIPATION AND VESTING RULES IN EFFECT
ON THE DATE OF ENACTMENT OF THIS ACT ARE NOT LESS FAVORABLE TO
PARTICIPANTS, IN THE AGGREGATE, THAN THE RULES PROVIDED UNDER SECTIONS
202, 203, AND 204.
(2) FOR PURPOSES OF PARAGRAPH (1), THE TERM "SUPPLEMENTARY OR SPECIAL
PLAN PROVISION" MEANS ANY PLAN PROVISION WHICH--,
(A) PROVIDES SUPPLEMENTARY BENEFITS, NOT IN EXCESS OF ONE-THIRD
OF THE BASIC BENEFIT, IN THE FORM OF AN ANNUITY FOR THE LIFE OF
THE PARTICIPANT, OR
(B) PROVIDES THAT, UNDER A CONTRACTURAL AGREEMENT BASED ON
MEDICAL EVIDENCE AS TO THE EFFECTS OF WORKING IN AN ADVERSE
ENVIRONMENT FOR AN EXTENDED PERIOD OF TIME, A PARTICIPANT HAVING
25 YEARS OF SERVICE IS TO BE TREATED AS HAVING 30 YEARS OF
SERVICE.
(3) THIS SUBSECTION SHALL APPLY WITH RESPECT TO A PLAN IF (AND ONLY
IF) THE APPLICATION OF THIS SUBSECTION RESULTS IN A LATER EFFECTIVE DATE
FOR THIS PART THAN THE EFFECTIVE DATE REQUIRED BY SUBSECTION (B).
(D) IF THE ADMINISTRATOR OF A PLAN ELECTS UNDER SECTION 1017(D) OF
THIS ACT //POST, P. 938.// TO MAKE APPLICABLE TO A PLAN YEAR AND TO ALL
SUBSEQUENT PLAN YEARS THE PROVISIONS OF THE INTERNAL REVENUE CODE OF
1954 RELATING TO PARTICIPATION, VESTING, FUNDING, AND FORM OF BENEFIT,
THIS PART SHALL APPLY TO THE FIRST PLAN YEAR TO WHICH SUCH ELECTION
APPLIES AND TO ALL SUBSEQUENT PLAN YEARS.
(E)(1) NO PENSION PLAN TO WHICH SECTION 202 APPLIES MAY MAKE
EFFECTIVE ANY PLAN AMENDMENT WITH RESPECT TO BREAKS IN SERVICE (WHICH
AMENDMENT IS MADE OR BECOMES EFFECTIVE AFTER JANUARY 1, 1974, AND BEFORE
THE DATE ON WHICH SECTION 202 FIRST BECOMES EFFECTIVE WITH RESPECT TO
SUCH PLAN) WHICH PROVIDES THAT ANY EMPLOYEE'S PARTICIPATION IN THE PLAN
WOULD COMMENCE AT ANY DATE LATER THAN THE LATER OF--,
(A) THE DATE ON WHICH HIS PARTICIPATION WOULD COMMENCE UNDER
THE BREAK IN SERVICE RULES OF SECTION 202(B), OR
(B) THE DATE ON WHICH HES PARICIPATION WOUL COMMENCE UNDER THE
PLAN AS IN EFFECT ON JANUARY 1, 1974.
(2) NO PENSION PLAN TO WHICH SECTION 203 APPLIES MAY MAKE EFFECTIVE
ANY PLAN AMENDMENT WITH RESPENT TO BREAKS IN SERVICE (WHICH AMENDMENT IS
MADE OR BECOMES EFFECTIVE AFTER JANUARY 1, 1974, AND BEFORE THE DATE ON
WHICH SECTION 203 FIRST BECOMES EFFECTIVE WITH RESPECT TO SUCH PLAN) IF
SUCH AMENDMENT PROVIDES THAT THE NONFORFEITABLE BENEFIT DERIVED FROM
EMPLOYER CONTRIBUTIONS TO WHICH ANY EMPLOYEE WOULD BE ENTITLED IS LESS
THAN THE LESSER OF THE NONFORFEITABLE BENEFIT DERIVED FROM EMPLOYER
CONTRIBUTIONS TO WHICH HE WOULD BE ENTITLED UNDER--,
(A) THE BREAK IN SERVICE RULES OF SECTION 202(B) (3), OR
(B) THE PLAN AS IN EFFECT ON JANUARY 1, 1974.
SUBPARAGRAPH (B) SHALL NOT APPLY IF THE BREAK IN SERVICE RULES UNDER THE
PLAN WOULD HAVE BEEN IN VIOLATION OF ANY LAW OR RULE OF LAW IN EFFECT ON
JANUARY 1, 1974.
SEC. 301. (A) THIS PART SHALL APPLY TO ANY EMPLOYEE PENSION BENEFIT
PLAN DESCRIBED IN SECTION 4(A), (AND NOT EXEMPTED UNDER SECTION 4(B)),
OTHER THAN--,
(A) AN EMPLOYEE WELFARE BENEFIT PLAN;
(2) AN INSURANCE CONTRACT PLAN DESCRIBED IN SUBSECTION (B);
(3) A PLAN WHICH IS UNFUNDED AND IS MAINTAINED BY AN EMPLOYER
PRIMARILY FOR THE PURPOSE OF PROVIDING DEFERRED COMPENSATION FOR A
SELECT GPOUP OF MANAGEMENT OF HIGHLY COMPENSATED EMPLOYEES;
(4) (A) A PLAN WHICH IS ESTABLISHED AND MAINTAINED BY A
SOCIETY, ORDER, OR ASSOCIATION DESCRIBED IN SECTION 501(C) (8) OR
(9) OF THE INTERNAL REVENUE CODE OF 1954, //26 USC 501.// IF NO
PART OF THE CONTRIBUTIONS TO OR UNDER SUCH PLAN ARE MADE BY
EMPLOYERS OF PARTICIPANTS IN SUCH PLAN; OR
(B) A TRUST DESCRIBED IN SECTION 501(C) (18) OF SUCH CODE;
(5) A PLAN WHICH HAS NOT AT ANY TIME AFTER THE DATE OF
ENACTMENT OF THIS ACT PROVIDED FOR EMPLOYER CONTRIBUTIONS;
(6) AN AGREEMENT PROVIDING PAYMENTS TO A RETIRED PARTNER OR
DECEASED PARTNER OR A DECEASED PARTNER'S SUCCESSOR IN INTEREST AS
DESCRIBED IN SECTION 736 OF THE INTERNAL REVENUE CODE OF 1954;
//26 USC 736.//
(7) AN INDIVIDUAL RETIREMENT ACCOUNT OR ANNUITY AS DESCRIBED IN
SECTION 408(A) OF THE INTERNAL REVENUE CODE OF 1954, OR A
RETIREMENT BOND DESCRIBED IN SECTION 409 OF SUCH CODE; //POST, P.
959.//
(8) AN INDIVIDUAL ACCOUNT PLAN (OTHER THAN A MONEY PURCHASE
PLAN) AND A DEFINED BENEFIT PLAN TO THE EXTENT IT IS TREATED AS AN
INDIVIDUAL ACCOUNT PLAN (OTHER THAN A MONEY PURCHASE PLAN) UNDER
SECTION 3(35) (B) OF THIS TITLE; OR
(9) AN EXCESS BENEFIT PLAN.
(B) FOR THE PURPOSES OF PARAGRAPH (2) OF SUBSECTION (A) A PLAN IS AN
"INSURANCE CONTRACT PLAN" IF--,
(1) THE PLAN IS FUNDED EXCLUSIVELY BY THE PURCHASE OF
INDIVIDUAL INSURANCE CONTRACTS,
(2) SUCH CONTRACTS PROVIDE FOR LEVEL ANNUAL PREMIUM PAYMENTS TO
BE PAID EXTENDING NOT LATER THAN THE RETIREMENT AGE FOR EACH
INDIVIDUAL PARTICIPATING IN THE PLAN, AND COMMENCING WITH THE DATE
THE INDIVIDUAL BECAME A PARTICIPANT IN THE PLAN (OR, IN THE CASE
OF AN INCREASE IN BENEFITS, COMMENCING AT THE TIME SUCH INCREASE
BECOMES EFFECTIVE),
(3) BENEFITS PROVIDED BY THE PLAN ARE EQUAL TO THE BENEFITS
PROVIDED UNDER EACH CONTRACT AT NORMAL RETIREMENT AGE UNDER THE
PLAN AND ARE GUARANTEED BY AN INSURANCE CARRIER (LICENSED UNDER
THE LAWS OF A STATE TO DO BUSINESS WITH THE PLAN) TO THE EXTENT
PREMIUMS HAVE BEEN PAID,
(4) PREMIUMS PAYABLE FOR THE PLAN YEAR, AND ALL PRIOR PLAN
YEARS UNDER SUCH CONTRACTS HAVE BEEN PAID BEFORE LAPSE OR THERE IS
REINSTATEMENT OF THE POLICY,
(5) NO RIGHTS UNDER SUCH CONTRACTS HAVE BEEN SUBJECT TO A
SECURITY INTEREST AT ANY TIME DURING THE PLAN YEAR, AND
(6) NO POLICY LOANS ARE OUTSTANDING AT ANY TIME DURING THE PLAN
YEAR.
A PLAN FUNDED EXCLUSIVELY BY THE PURCHASE OF GROUP INSURANCE CONTRACTS
WHICH IS DETERMINED UNDER REGULATIONS PRESCRIBED BY THE SECRETARY OF THE
TREASURY TO HAVE THE SAME CHARACTERISTICS AS A PLAN DESCRIBED IN THIS
SUBSECTION.
SEC. 302. (A) (1) EVERY EMPLOYEE PENSION BENEFIT PLAN SUBJECT TO
THIS PART SHALL SATISFY THE MINIMUM FUNDING STANDARD (OR THE ALTERNATIVE
MINIMUM FUNDING STANDARD UNDER SECTION 305) FOR ANY PLAN YEAR TO WHICH
THIS PART APPLIES. A PLAN TO WHICH THIS PART APPLIES SHALL HAVE
SATISFIED THE MINIMUM FUNDING STANDARD FOR SUCH PLAN FOR A PLAN YEAR IF
AS OF THE END OF SUCH PLAN YEAR THE PLAN DOES NOT HAVE AN ACCUMULATED
FUNDING DEFICIENCY.
(2) FOR THE PURPOSES OF THIS PART, THE TERM "ACCUMULATED FUNDING
DEFICIENCY" MEANS FOR ANY PLAN THE EXCESS OF THE TOTAL CHARGES TO THE
FUNDING STANDARD ACCOUNT FOR ALL PLAN YEARS (BEGINNING WITH THE FIRST
PLAN YEAR TO WHICH THIS PART APPLIES) OVER THE TOTAL CREDITS TO SUCH
ACCOUNT FOR SUCH YEARS OR, IF LESS, THE EXCESS OF THE TOTAL CHARGES TO
THE ALTERNATIVE MINIMUM FUNDING STANDARD ACCOUNT FOR SUCH PLAN YEARS
OVER THE TOTAL CREDITS TO SUCH ACCOUNT FOR SUCH YEARS.
(B) (1) EACH PLAN TO WHICH THIS PART APPLIES SHALL ESTABLISH AND
MAINTAIN A FUNDING STANDARD ACCOUNT. SUCH ACCOUNT SHALL BE CREDITED AND
CHARGED SOLELY AS PROVIDED IN THIS SECTION.
(2) FOR A PLAN YEAR, THE FUNDING STANDARD ACCOUNT SHALL BE CHARGED
WITH THE SUM OF--,
(A) THE NORMAL COST OF THE PLAN FOR THE PLAN YEAR,
(B) THE AMOUNTS NECESSARY TO AMORTIZE IN EQUAL ANNUAL
INSTALLMENTS (UNTIL FULLY AMORTIZED)--,
(I) IN THE CASE OF A PLAN IN EXISTENCE ON JANUARY 1, 1974, THE
UNFUNDED PAST SERVICE LIABILITY UNDER THE PLAN ON THE FIRST DAY OF
THE FIRST PLAN YEAR TO WHICH THIS PART APPLIES, OVER A PERIOD OF
40 PLAN YEARS,
(II) IN THE CASE OF A PLAN WHICH COMES INTO EXISTENCE AFTER
JANUARY 1, 1974, THE UNFUNDED PAST SERVICE LIABILITY UNDER THE
PLAN ON THE FIRST DAY OF THE FIRST PLAN YEAR TO WHICH THIS PART
APPLIES, OVER A PERIOD OF 30 PLAN YEARS (40 PLAN YEARS IN THE CASE
OF A MULTIEMPLOYER PLAN),
(III) SEPARATELY, WITH RESPECT TO EACH PLAN YEAR, THE NET
INCREASE (IF ANY) IN UNFUNDED PAST SERVICE LIABILITY UNDER THE
PLAN ARISING FROM PLAN AMENDMENTS ADOPTED IN SUCH YEAR, OVER A
PERIOD OF 30 PLAN YEARS (40 PLAN YEARS IN THE CASE OF A
MULTIEMPLOYER PLAN),
(IV) SEPARATELY, WITH RESPECT TO EACH PLAN YEAR, THE NET
EXPERIENCE LOSS (IF ANY) UNDER THE PLAN, OVER A PERIOD OF 15 PLAN
YEARS (20 PLAN YEARS IN THE CASE OF A MULTIEMPLOYER PLAN), AND
(V) SEPARATELY, WITH RESPECT TO EACH PLAN YEAR, THE NET LOSS
(IF ANY) RESULTING FROM CHANGES IN ACTUARIAL ASSUMPTIONS USED
UNDER THE PLAN, OVER A PERIOD OF 30 PLAN YEARS,
(C) THE AMOUNT NECESSARY TO AMORTIZE EACH WAIVED FUNDING
DEFICIENCY (WITHIN THE MEANING OF SECTION 303 (C) FOR EACH PRIOR
PLAN YEAR IN EQUAL ANNUAL INSTALLMENTS (UNTIL FULLY AMORTIZED)
OVER A PERIOD OF 15 PLAN YEARS, AND
(D) THE AMOUNT NECESSARY TO AMORTIZE IN EQUAL ANNUAL
INSTALLMENTS (UNTIL FULL AMORTIZED) OVER A PERIOD OF 5 PLAN YEARS
ANY AMOUNT CREDITED TO THE FUNDING STANDARD ACCOUNT UNDER
PARAGRAPH (3) (D).
(3) FOR PLAN YEAR, THE FUNDING STANDARD ACCOUNT SHALL BE CREDITED
WITH THE SUM OF--,
(A) THE AMOUNT CONSIDERED CONTRIBUTED BY THE EMPLOYER TO OR
UNDER THE PLAN FOR THE PLAN YEAR,
(B) THE AMOUNT NECESSARY TO AMORTIZE IN EQUAL ANNUAL
INSTALLMENTS (UNTIL FULLY AMORTIZED)--,
(I) SEPARATELY, WITH RESPECT TO EACH PLAN YEAR, THE NET
DECREASE (IF ANY) IN UNFUNDED PAST SERVICE LIABILITY UNDER THE
PLAN ARISING FROM PLAN AMENDMENTS ADOPTED IN SUCH YEAR, OVER A
PERIOD OF 30 PLAN YEARS (40 PLAN YEARS IN THE CASE OF A
MULTIEMPLOYER PLAN),
(II) SEPARATELY, WITH RESPECT TO EACH PLAN YEAR, THE NET
EXPERIENCE GAIN (IF ANY) UNDER THE PLAN, OVER A PERIOD OF 15 PLAN
YEARS (20 PLAN YEARS IN THE CASE OF A MULTIEMPLOYER PLAN), AND
(III) SEPARATELY, WITH RESPECT TO EACH PLAN YEAR, THE NET GAIN
(IF ANY) RESULTING FROM CHANGES IN ACTUARIAL ASSUMPTIONS USED
UNDER THE PLAN, OVER A PERIOD OF 30 PLAN YEARS.
(C) THE AMOUNT OF THE WAIVED FUNDING DEFICIENCY (WITHIN THE
MEANING OF SECTION 303(C)) FOR THE PLAN YEAR, AND
(D) IN THE CASE OF A PLAN YEAR FOR WHICH THE ACCUMULATED
FUNDING DEFICIENCY IS DETERMINED UNDER THE FUNDING STANDARD
ACCOUNT IF SUCH PLAN YEAR FOLLOWS A PLAN YEAR FOR WHICH SUCH
DEFICIENCY WAS DETERMINED UNDER THE ALTERNATIVE MINIMUM FUNDING
STANDARD, THE EXCESS (IF ANY) OF ANY DEBIT BALANCE IN THE FUNDING
STANDARD ACCOUNT (DETERMINED WITHOUT REGARD TO THIS SUBPARAGRAPH)
OVER ANY DEBIT BALANCE IN THE ALTERNATIVE MINIMUM FUNDING STANDARD
ACCOUNT.
(4) UNDER REGULATIONS PRESCRIBED BY THE SECRETARY OF THE TREASURY,
AMOUNTS REQUIRED TO BE AMORTIZED UNDER PARAGRAPH (2) OR PARAGRAPH (3),
AS THE CASE MAY BE--,
(A) MAY BE COMBINED INTO ONE AMOUNT UNDER SUCH PARAGRAPH TO BE
AMORTIZED OVER A PERIOD DETERMINED ON THE BASIS OF THE REMAINING
AMORTIZATION PERIOD FOR ALL ITEMS ENTERING INTO SUCH COMBINED
AMOUNT, AND
(B) MAY BE OFFSET AGAINST AMOUNTS REQUIRED TO BE AMORTIZED
UNDER THE OTHER SUCH PARAGRAPH, WITH THE RESULTING AMOUNT TO BE
AMORTIZED OVER A PERIOD DETERMINED ON THE BASIS OF THE REMAINING
AMORITZATION PERIODS FOR ALL ITEMS ENTERING INTO WHICHEVER OF THE
TWO AMOUNTS BEING OFFSET IS THE GREATER.
(5) THE FUNDING STANDARD ACCOUNT (AND ITEMS THEREIN) SHALL BE CHARGED
OR CREDITED (AS DETERMINED UNDER REGULATIONS PRESCRIBED BY THE SECRETARY
OF THE TREASURY) WITH INTEREST AT THE APPROPRIATE RATE CONSISTENT WITH
THE RATE OR RATES OF INTEREST USED UNDER THE PLAN TO DETERMINE COSTS.
(C)(1) FOR PURPOSES OF THIS PART, NORMAL COSTS, ACCRUED LIABILITY,
PAST SERVICE LIABILITIES, AND EXPERIENCE GAINS AND LOSSES SHALL BE
DETERMINED UNDER THE FUNDING METHOD USED TO DETERMINE COSTS UNDER THE
PLAN. (2) (A) FOR PURPOSES OF THIS PART, THE VALUE OF THE PLAN'S ASSETS
SHALL BE DETERMINED ON THE BASIS OF ANY REASONABLE ACTUARIAL METHOD OF
VALUATION WHICH TAKES INTO ACCOUNT FAIR MARKET VALUE AND WHICH IS
PERMITTED UNDER REGULATIONS PRESCRIBED BY THE SECRETARY OF THE TREASURY.
(B) FOR PURPOSES OF THIS PART, THE VALUE OF A BOND OR OTHER EVIDENCE
OF INDEBTEDNESS WHICH IS NOT IN DEFAULT AS TO PRINCIPAL OR INTEREST MAY,
AT THE ELECTION OF THE PLAN ADMINISTRATOR, BE DETERMINED ON A AMORTIZED
BASIS RUNNING FROM INITIAL COST AT PURCHASE TO PAR VALUE AT MATURITY OR
EARLIEST CALL DATE. ANY ELECTION UNDER THIS SUBPARAGRAPH SHALL BE MADE
AT SUCH TIME AND IN SUCH MANNER AS THE SECRETARY OF THE TREASURY SHALL
BY REGULATIONS PROVIDE, SHALL APPLY TO ALL SUCH EVIDENCES OF
INDEBTEDNESS, AND MAY BE REVOKED ONLY WITH THE CONSENT OF THE SECRETARY
OF THE TREASURY.
(3) FOR PURPOSES OF THIS PART, ALL COSTS, LIABILITIES, RATES OF
INTEREST, AND OTHER FACTORS UNDER THE PLAN SHALL BE DETERMINED ON THE
BASIS OF ACTUARIAL ASSUMPTIONS AND METHODS WHICH, IN THE AGGREGATE, ARE
REASONABLE (TAKING INTO ACCOUNT THE EXPERIENCE OF THE PLAN AND
REASONABLE EXPECTATIONS) AND WHICH, IN COMBINATION, OFFER THE ACTUARY'S
BEST ESTIMATE OF ANTICIPATED EXPERIENCE UNDER THE PLAN.
(4) FOR PRUPOSES OF THIS SECTION, IF--,
(A) A CHANGE IN BENEFITS UNDER THE SOCIAL SECURITY ACT //42 USC
1305.// OR IN OTHER RETIREMENT BENEFITS CREATED UNDER FEDERAL OR
STATE LAW, OR
(B) A CHANGE IN THE DEFINITION OF THE TERM "WAGES" UNDER
SECTION 3121 OF THE INTERNAL REVENUE CODE OF 1954, //26 USC
3121.// OR A CHANGE IN THE AMOUNT OF SUCH WAGES TAKEN INTO ACCOUNT
UNDER REGULATIONS PRESCRIBED FOR PURPOSES OF SECTION 401( A) (5)
OF THE INTERNAL REVENUE CODE OF 1954, //26 USC 401.//
RESULTS IN AN INCREASE OR DECREASE SHALL BE TREATED AS AN EXPERIENCE
LOSS OR GAIN.
(5) IF THE FUNDING METHOD FOR A PLAN IS CHANGED, THE NEW FUNDING
METHOD SHALL BECOME THE FUNDING METHOD USED TO DETERMINE COSTS AND
LIABILITIES UNDER THE PLAN ONLY IF THE CHANGE IS APPROVED BY THE
SECRETARY OF THE TREASURY. IF THE PLAN YEAR FOR A PLAN IS CHANGED, THE
NEW PLAN YEAR SHALL BECOME THE PLAN YEAR FOR THE PLAN ONLY IF THE CHANGE
IS APPROVED BY THE SECRETARY OF THE TREASURY.
(6) IF, AS OF THE CLOSE OF A PLAN YEAR, A PLAN WOULD (WITHOUT REGARD
TO THIS PARAGRAPH) HAVE AN ACCUMULATED FUNDING DEFICIENCY (DETERMINED
WITHOUT REGARD TO THE ALTERNATIVE MINIMUM FUNDING STANDARD ACCOUNT
PERMITTED UNDER SUBSECTION (G)) IN EXCESS OF THE FULL FUNDING
LIMITATION--,
(A) THE FUNDING STANDARD ACCOUNT SHALL BE CREDITED WITH THE
AMOUNT OF SUCH EXCESS, AND
(B) ALL AMOUNTS DESCRIBED IN PARAGRAPHS (2), (B), (C), AND (D)
AND (3) (B) OF SUBSECTION (B) WHICH ARE REQUIRED TO BE AMORTIZED
SHALL BE CONSIDERED FULL AMORTIZED FOR PURPOSES OF SUCH
PARAGRAPHS.
(7) FOR PURPOSES OF PARAGRAPH (6), THE TERM "FULL FUNDING LIMITATION"
MEANS THE EXCESS (IF ANY) OF--,
(A) THE ACCRUED LIABILITY (INCLUDING NORMAL COST) UNDER THE
PLAN (DETERMINED UNDER THE ENTRY AGE NORMAL FUNDING METHOD IF SUCH
ACCRUED LIABILITY CANNOT BE DIRECTLY CALCULATED UNDER THE FUNDING
METHOD USED FOR THE PLAN), OVER
(B) THE LESSER OF THE FAIR MARKET VALUE OF THE PLAN'S ASSETS OR
THE VALUE OF SUCH ASSETS DETERMINED UNDER PARAGRAPH (2).
(8) FOR PURPOSES OF THIS PART, ANY AMENDMENT APPLYING TO A PLAN YEAR
WHICH--,
(A) IS ADOPTED AFTER THE CLOSE OF SUCH PLAN YEAR BUT NO LATER
THAN 2 1/2 MONTHS AFTER THE CLOSE OF THE PLAN YEAR (OR, IN THE
CASE OF A MULTIEMPLOYER PLAN, NO LATER THAN 2 YEARS AFTER THE
CLOSE OF SUCH PLAN YEAR),
(B) DOES NOT REDUCR THE ACCRUED BENEFIT OF ANY PARTICIPANT
DETERMINED AS OF THE BEGINNING OF THE FIRST PLAN YEAR TO WHICH THE
AMENDMENTS APPLIES, AND
(C) DOES NOT REDUCE THE ACCRUED BENEFIT OF ANY PARTICIPANT
DETERMINED AS OF THE TIME OF ADOPTION EXCEPT TO THE EXTENT
REQUIRED BY THE CIRCUMSTANCES,
SHALL, AT THE ELECTION OF THE PLAN ADMINISTRATOR, BE DEEMED TO HAVE BEEN
MADE ON THE FIRST DAY OF SUCH PLAN YEAR. NO AMENDMENT DESCRIBED IN THIS
PARAGRAPH WHICH REDUCES THE ACCRUEDBENEFITS OF ANY PARTICIPANT SHALL
TAKE EFFECT UNLESS THE PLAN ADMINISTRATOR FILES A NOTICE WITH THE
SECRETARY NOTIFYING HIM OF SUCH AMENDMENT AND THE SECRETARY HAS APPROVED
SUCH AMENDMENT OR, WITHIN 90 DAYS AFTER THE DATE ON WHICH SUCH NOTICE
WAS FILED, FAILED TO DISAPPROVE SUCH AMENDMENT. NO AMENDMENT DESCRIBED
IN THIS SUBSECTION SHALL BE A PPROVED BY THE SECRETARY UNLESS HE
DETERMINES THAT SUCH AMENDMENT IS NECESSARY BECAUSE OF A SUBSTANTIAL
BUSINESS HARDSHIP (AS DETERMINED UNDER SECTION 303(B)) AND THAT WAIVER
UNDER SECTION 303(A) IS UNAVAILABLE OR INADEQUATE.
(9) FOR PURPOSES OF THIS PART, A DETERMINATION OF EXPERIENCE GAINS
AND LOSSES AND A VALUATION OF THE PLAN'S LIABILITY SHALL BE MADE NOT
LESS FREQUENTLY THAN ONCE EVERY 3 YEARS, EXCEPT THAT SUCH DETERMINATION
SHALL BE MADE MORE FREQUENTLY TO THE EXTENT REQUIRED IN PARTICULAR CASES
UNDER REGULATIONS PRESCRIBED BY THE SECRETARY OF THE TREASURY.
(10) FOR PURPOSES OF THIS PART, ANY CONTRIBUTIONS FOR A PLAN YEAR
MADE BY AN EMPLOYER AFTER THE LAST DAY OF SUCH PLAN YEAR, BUT NOT LATER
THAN 2 1/2 MONTHS AFTER SUCH DAY, SHALL BE DEEMED TO HAVE BEEN MADE ON
SUCH LAST DAY. FOR PURPOSES OF THIS PARAGRAPH, SUCH 2 1/2 MONTH PERIOD
MAY BE EXTENDED FOR NOT MORE THAN 6 MONTHS UNDER REGULATIONS PRESCRIBED
BY THE SECRETARY OF THE TREASURY.
(D) CROSS REFERENCE.--FOR ALTERNATIVE AMORTIZATION METHOD FOR CERTAIN
MULTIEMPLOYER PLANS SEE SECTION 1013(D) OF THIS ACT. //POST, P. 923.//
SEC. 303. (A) IF AN EMPLOYER, OR IN THE CASE OF MULTIEMPLOYER PLAN,
10 PAERCENT OR MORE OF THE NUMBER OF EMPLOYERS CONTRIBUTING TO OR UNDER
THE PLAN ARE UNABLE TO SATISFY THE MINIMUM FUNDING STANDARD FOR A PLAN
YEAR WITHOUT SUBSTANTIAL BUSINESS HARDSHIP AND IF APPLICATION OF THE
STANDARD WOULD BE ADVERSE TO THE INTERESTS OF PLAN PARTICIPANTS IN THE
AGGREGATE, THE SECRETARY OF THE TREASURY MAY WAIVE THE REQUIREMENTS OF
SECTION 302(A) FOR SUCH YEAR WITH RESPECT TO ALL OR ANY PORTION OF THE
MINIMUM FUNDING STANDARD OTHER THAN THE PORTION THEREOF DETERMINED UNDER
SECTION 302(B) (2) (C). THE SECRETARY OF THE TREASURY SHALL NOT WAIVE
THE MINIMUM FUNDING STANDARD WITH RESPECT TO A PLAN FOR MORE THAN 5 OF
ANY 15 CONSECUTIVE PLAN YEARS.
(B) FOR PURPOSES OF THIS PART, THE FACTORS TAKEN INTO ACCOUNT IN
DETERMINING SUBSTANTIAL BUSINESS HARDSHIP SHALL INCLUDE (BUT SHALL NOT
BE LIMITED TO) WHETHER--,
(1) THE EMPLOYER IS OPERATING AT AN ECONOMIC LOSS,
(2) THERE IS SUBSTANTIAL ENEMPLOYMENT OR UNDEREMPLOYMENT IN THE
TRADE OR BUSINESS AND IN THE INDUSTRY CONCERNED,
(3) THE SALES AND PROFITS OF THE INDUSTRY CONCERNED ARE
DEPRESSED OR DECLINING, AND
(4) IT IS REASONABLE TO EXPECT THAT THE PLAN WILL BE CONTINUED
ONLY IF THE WAIVER IS GRANTED.
(C) FOR THE PURPOSES OF THIS PART, THE TERM "WAIVED FUNDING
DEFICIENCY" MEANS THE PROTION OF THE MINIMUM FUNDING STANDARD
(DETERMINED WITHOUT REGARD TO SUBSECTION (B) (3) (C) OF SECTION 302) FOR
A PLAN YEAR WAIVED BY THE SECRETARY OF THE TREASURY AND NOT SATISFIED BY
EMPLOYER CONTRIBUTIONS.
(D) CROSS REFERENCE.--,
FOR CORRESPONDING DUTIES OF THE SECRETARY OF THE TREASURY WITH REGARD
TO IMPLEMENTATION OF THE INTERNAL REVENUE CODE OF 1954, SEE SECTION
412(D) OF SUCH CODE.
SEC. 304. (A) THE PERIOD OF YEARS REQUIRED TO AMORTIZE ANY UNFUNDED
LIABILITY (DESCRIBED IN ANY CLAUSE OF SUCSECTION (B) (2) (B) OF SECTION
302) OF ANY PLAN MAY BE EXTENDED BY THE SECRETARY FOR A PERIOD OF TIME
(NOT IN EXCESS OF 10 YEARS) IF HE DETERMINES THAT SUCH EXTENSION WOULD
CARRY OUT THE PURPOSES OF THIS ACT AND WOULD PROVIDE ADEQUATE PROTECTION
FOR PARTICIPANTS UNDER THE PLAN AND THEIR BENEFICIARIES AND IF HE
DETERMINES THAT THE FAILURE TO PERMIT SUCH EXTENSION WOULD--,
(1) RESULT IN--,
(A) A SUBSTANTIAL RISK TO THE VOLUNTARY CONTINUATION OF THE
PLAN, OR
(B) A SUBSTANTIAL CURTAILMENT OF PENSION BENEFIT LEVELS OR
EMPLOYEE COMPENSATION, AND
(2) BE ADVERSE TO THE INTEREST OF PLAN PARTICIPANTS IN THE
AGGREGATE.
(B) (1) NO AMENDMENT OF THE PLAN WHICH INCREASES THE LIABILITIES OF
THE PLAN BY REASON OF ANY INCREASE IN BENEFITS, ANY CHANGE IN THE
ACCRUAL OF BENEFITS, OR ANY CHANGE IN THE RATE AT WHICH BENEFITS BECOME
NONFORFEITABLE UNDER THE PLAN SHALL BE ADOPTED IF A WAIVER UNDER SECTION
303(A) OR AN EXTENSION OF TIME UNDER SUBSECTION (A) OF THIS SECTION IS
IN EFFECT WITH RESPECT TO THE PLAN, OR IF A PLAN AMENDMENT DESCRIBED IN
SECTION 302(C) (8) HAS BEEN MADE AT ANY TIME IN THE PRECEDING 12 MONTHS
(24 MONTHS IN THE CASE OF A MULTIEMPLOYER PLAN). IF A PLAN IS AMENDED IN
VIOLATION OF THE PRECEDING SENTENCE, ANY SUCH WAIVER, OR EXTENSION OT
TIME, SHALL NOT APPLY TO ANY PLAN YEAR ENDING ON OR AFTER THE DATE ON
WHICH SUCH AMENDMENT IS ADOPTED.
(2) PARAGRAPH (1) SHALL NOT APPLY TO ANY PLAN AMENDMENT WHICH--,
(A) THE SECRETARY DETERMINES TO BE REASONABLE AND WHICH
PROVIDES FOR ONLY DE MINIMIS INCREASES IN THE LIABILITIES OF THE
PLAN.
(B) ONLY REPEALS AN AMENDMENT DESCRIBED IN SECTION 302(C) (8),
OR
(C) IS REQUIRED AS A CONDITION OF QUALIFICATION UNDER PART I OF
SUBCHAPTER D, OF CHAPTER !, OF THE INTERNAL REVENUE CODE OF 1954.
//POST, PP. 959, 964, 898, 924, 979, 26 USC 401.//
SEC. 305. (A) A PLAN WHICH USES A FUNDING METHOD THAT REQUIRES
CONTRIBUTIONS IN ALL YEARS NOT LESS THAN THOSE REQUIRED UNDER THE ENTRY
AGE NORMAL FUNDING METHOD MAY MAINTAIN AN ALTERNATIVE MINIMUM FUNDING
STANDARD ACCOUNT FOR ANY PLAN YEAR. SUCH ACCOUNT SHALL BE CREDITED AND
CHARGED SOLELY AS PROVIDED IN THIS SECTION.
(B) FOR A PLAN YEAR THE ALTERNATIVE MINIMUM FUNDING STANDARD
ACCOUNTS SHALL BE--,
(1) CHARGED WITH THE SUM OF--,
(A) THE LESSER OF NORMAL COST UNDER THE FUNDING METHOD USED
UNDER THE PLAN OR NORMAL COST DETERMINED UNDER THE UNIT CREDIT
METHOD,
(B) THE EXCESS, IF ANY, OF THE PRESENT VALUE OF ACCRUED
BENEFITS UNDER THE PLAN OVER THE FAIR MARKET VALUE OF THE ASSETS
AND
(C) AN AMOUNT EQUAL TO THE EXCESS, IF ANY, OF CREDITS TO THE
ALTERNATIVE MINIMUM FUNDING STANDARD ACCOUNT FOR ALL PRIOR PLAN
YEARS OVER CHARGES TO SUCH ACCOUNT FOR ALL SUCH YEARS, AND
(2) CREDITED WITH THE AMOUNT CONSIDERED CONTRIBUTED BY THE
EMPLOYER TO OR UNDER THE PLAN (WITHIN THE MEANING OF SECTION 302(
C) (10) FOR THE PLAN YEAR.
(C) THE ALTERNATIVE MINIMUM FUNDING STANDARD ACCOUNT (AND ITEMS
THEREIN) SHALL BE CHARGED OR CREDITED WITH INTEREST IN THE MANNER
PROVIDED UNDER SECTION 302(B) (5) WITH RESPECT TO THE FUNDING STANDARD
ACCOUNT.
SEC. 306. (A) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, THIS
PART SHALL APPLY IN THE CASE OF PLAN YEARS BEGINNING AFTER THE DATE OF
THE ENACTMENT OF THIS ACT.
(B) EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (C) AND (D), IN THE
CASE OF A PLAN IN EXISTENCE ON JANYARY 1, 1974, THIS PART SHALL APPLY IN
THE CASE OF PLAN YEARS BEGINNING AFTER DECEMBER 31, 1975.
(C) (1) IN THE CASE OF A PLAN MAINTAINED ON JANUARY 1, 1974, PURSUANT
TO ONE OR MORE AGREEMENTS WHICH THE SECRETARY FINDS TO BE COLLECTIVE
BARGAINING AGREEMENTS BETWEEN EMPLOYEE REPRESENTATIVES AND ONE OR MORE
EMPLOYERS, THIS PART SHALL APPLY ONLY WITH RESPECT TO PLAN YEARS
BEGINNING AFTER THE EARLIER TO THE DATE SPECIFIED IN SUBPARAGRAPH (A) OR
(B) OF SECTION 211(C) (1).
(2) THIS SUBSECTION SHALL APPLY WITH RESPECT TO A PLAN IF (AND ONLY
IF) THE APPLICATION OF THIS SUBSECTION RESULTS IN A LATER EFFECTIVE DATE
FOR THIS PART THAN THE EFFECTIVE DATE REQUIRED BY SUBSECTION (B).
(D) IN THE CASE OF A PLAN THE ADMINISTRATOR OF WHICH ELECTS UNDER
SECTION 1017(D) OF THIS ACT //POST, P. 934.// TO HAVE THE PROVISIONS OF
THE INTERNAL REVENUE CODE OF 1954 RELATION TO PARTICIPATION, VESTING,
FUNDING, AND FORM OF BENEFIT TO APPLY TO A PLAN YEAR AND TO ALL
SUBSEQUENT PLAN YEARS, THIS PART SHALL APPLY TO PLAN YEARS BEGINNING ON
THE EARLIER OF THE FIRST PLAN YEAR TO WHICH SUCH ELECTION APPLIES OR THE
FIRST PLAN YEAR DETERMINED UNDER SUBSECTION (A), (B), AND (C) OF THIS
SECTION.
(E) IN THE CASE OF A PLAN MAINTAINED BY A LABOR ORGANIZATION WHICH IS
EXEMPT FROM TAX UNDER SECTION 501(C) (5) OF THE INTERNAL REVENUE CODE OF
1954 //26 USC 501.// EXCLUSIVELY FOR THE BENEFIT OF ITS EMPLOYEES AND
THEIR BENEFICIARIES, THIS PART SHALL BE APPLIED BY SUBSTITUTING FOR THE
TERM "DECEMBER 31, 1975" IN SUBSECTION (B), THE EARLIER OF--,
(1) THE DATE ON WHICH THE SECOND CONVENTION OF SUCH LABOR
ORGANIZATION HELD AFTER THE DATE OF THE ENACTMENT OF THIS ACT
ENDS, OR
(2) DECEMBER 31, 1980,
BUT IN NO EVENT SHALL A DATE EARLIER THAN THE LATER OF DECEMBER 31,
1975, OR THE DATE DETERMINED UNDER SUBSECTION (C) BE SUBSTITUTED.
SEC. 401. (A) THIS PART SHALL APPLY TO ANY EMPLOYEE BENEFIT PLAN
DESCRIBED IN SECTION 4(A) (AND NOT EXEMPTED UNDER SECTION 4(B)), OTHER
THAN--,
(1) A PLAN WHICH IS UNFUNDED AND IS MAINTAINED BY AN EMPLOYER
PRIMARILY FOR THE PURPOSE OF PROVIDING DEFERRED COMPENSATION FOR A
SELECT GROUP OF MANAGEMENT OR HIGHLY COMPENSATED EMPLOYEES; OR
(2) ANY AGREEMENT DEACRIBED IN SECTION 736 OF THE INTERNAL
REVENUE CODE OF 1954, //26 USC 736.// WHICH PROVIDES PAYMENTS TO A
RETIRED PARTNER OR DECEASED PARTNER OR A DECEASED PARTNER'S
SUCCESSOR IN INTEREST.
(B) FOR PURPOSES OF THIS PART:
(1) IN THE CASE OF A PLAN WHICH INVESTS IN ANY SECURITY ISSUED
BY AN INVESTMENT COMPANY REGISTERED UNDER THE INVESTMENT COMPANY
ACT OF 1940, //15 USC 80A - 51.//THE ASSETS OF SUCH PLAN SHALL BE
DEEMED TO INCLUDE SUCH SECURITY BUT SHALL NOT, SOLELY BY REASON OF
SUCH INVESTMENT, BE DEEMED TO INCLUDE ANY ASSETS OF SUCH
INVESTMENT COMPANY.
(2) IN THE CASE OF A PLAN TO WHICH A GUARANTEED BENEFIT POLICY
IS ISSUED BY AN INSURER, THE ASSETS OF SUCH PLAN SHALL BE DEEMED
TO INCLUDE SUCH POLICH, BUT SHALL NOT, SOLELY BY REASON OF THE
ISSUANCE OF SUCH POLICY, BE DEEMED TO INCLUDE ANY ASSETS OF SUCH
INSURER. FOR PURPOSES OF THIS PARAGRAPH:
(A) THE TERM "INSURER" MEANS AN INSURANCE COMPANY, INSURANCE
SERVICE, OR INSURANCE ORGANIZATION, QUALIFIED TO DO BUSINESS IN A
STATE.
(B) THE TERM "GUARANTEED BENEFIT POLICY" MEANS AN INSURANCE
POLICY OR CONTRACT TO THE EXTENT THAT SUCH POLICY OR CONTRACT
PROVIDES FOR BENEFITS THE AMOUNT OF WHICH IS GUARANTEED BY THE
INSURER. SUCH TERM INCLUDES ANY SURPLUS IN A SEPARATE ACCOUNT,
BUT EXCLUDES ANY OTHER PORTION OF A SEPARATE ACCOUNT.
SEC. 402. (A) (1) EVERY EMPLOYEE BENEFIT PLAN SHALL BE ESTABLISHED
AND MAINTAINED PURSUANT TO A WRITTEN INSTRUMENT. SUCH INSTRUMENT SHALL
PROVIDE FOR ONE OR MORE NAMED FIDUCIARIES WHO JOINTLY OR SEVERALLY SHALL
HAVE AUTHORITY TO CONTROL AND MANAGE THE OPERATION AND ADMINISTRATION OF
THE PLAN.
(2) FOR PURPOSES OF THIS TITLE, THE TERM "NAME FIDUCIARY" MEANS A
FIDUCIARY WHO IS NAMED IN THE PLAN INSTRUMENT, OR WHO, PURSUANT TO A
PROCEDURE SPECIFIED IN THE PLAN, IS INDETIFIED AS A FIDUCIARY (A) BY A
PERSON WHO IS AN EMPLOYER OR EMPLOYEE ORGANIZATION WITH RESPECT TO THE
PLAN OR (B) BY SUCH AN EMPLOYER AND SUCH AN EMPLOYEE ORGANIZATION ACTING
JOINTLY.
(B) EVERY EMPLOYEE BENEFIT PLAN SHALL--,
(1) PROVIDE A PRECEDURE FOR ESTABLISHING AND CARRYING OUT A
FUNDING POLICY AND METHOD CONSISTENT WITH THE OBJECTIVES OF THE
PLAN AND THE REQUIREMENTS OF THIS TITLE,
(2) DESCRIBE ANY PROCEDURE UNDER THE PLAN FOR THE ALLOCATION OF
RESPONSIBILITIES FOR THE OPERATION AND ADMINISTRATION OF THE PLAN
(INCLUDING ANY PROCEDURE DESCRIBED IN SECTION 405(C) (!)),
(3) PROVIDE A PROCEDURE FOR AMENDING SUCH PLAN, AND FOR
IDENTIFYING THE PERSONS WHO HAVE AUTHORITY TO AMEND THE PLAN, AND
(4) SPECIFY THE BASIS ON WHICH PAYMENTS ARE MADE TO AND FROM
THE PLAN.
(C) ANY EMPLOYEE BENEFIT PLAN MAY PROVIDE--,
(1) THAT ANY PERSON OR GROUP OF PERSONS MAY SERVE IN MORE THAN
ONE FIDUCIARY CAPACITY WITH RESPECT TO THE PLAN (INCLUDING SERVICE
BOTH AS TRUSTEE AND ADMINISTRATOR);
(2) THAT A NAMED FIDUCIARY, OR A FIDUCIARY DESIGNATED BY A
NAMED FIDUCIARY PURSUANT TO A PLAN PROCEDURE DESCRIBED IN SECTION
405 (C) (!), MAY EMPLOY ONE OR MORE PERSONS TO RENDER ADVICE WITH
REGARD TO ANY RESPONSIBILITY SUCH FIDUCIARY HAS UNDER THE PLAN;
OR
(3) THAT A PERSON WHO IS A NAMED FIDUCIARY WITH RESPECT TO
CONTROL OR MANAGEMENT OF THE ASSETS OF THE PLAN MAY APPOINT AN
INVESTMENT MANAGER OR MANAGERS TO MANAGE (INCLUDING THE POWER TO
ACQUIRE AND DISPOSE OF) ANY ASSETS OF A PLAN.
SEC. 403. (A) EXCEPT AS PROVIDED IN SUBSECTION (B), ALL ASSETS OF AN
EMPLOYEE BENEFIT PLAN SHALL BE HELD IN TRUST BY ONE OR MORE TRUSTEES.
SUCH TRUSTEE OR TRUSTEES SHALL BE EITHER NAMED IN THE TRUST INSTRUMENT
OR IN THE PLAN INSTRUMENT DESCRIBED IN SECTION 402(A) OR APPOINTED BY A
PERSON WHO IS A NAMED FIDUCIARY, AND UPON ACCEPTANCE OF BEING NAMED OR
APPOINTED, THE TRUSTEE OR TRUSTEES SHALL HAVE EXCLUSIVE AUTHORITY AND
DISCRETION TO MANAGE AND CONTROL THE ASSETS OF THE PLAN, EXCEPT TO THE
EXTENT THAT--,
(1) THE PLAN EXPRESSLY PROVIDES THAT THE TRUSTEE OR TRUSTEES
ARE SUBJECT TO THE DIRECTION OF A NAMED FIDUCIARY WHO IS NOT A
TRUSTEE, IN WHICH CASE THE TRUSTEES SHALL BE SUBJECT TO PROPER
DIRECTIONS OF SUCH FIDUCIARY WHICH ARE MADE IN ACCORDANCE WITH THE
TERMS OF THE PLAN AND WHICH ARE NOT CONTRARY TO THIS TITLE, OR
(2) AUTHORITY TO MANAGE, ACQUIRE, OR DISPOSE OF ASSETS OF THE
PLAN IS DELEGATED TO ONE OR MORE INVESTMENT MANAGERS PURSUANT TO
SECTION 402(C) (3).
(B) THE REQUIREMENTS OF SUBSECTION (A) OF THIS SECTION SHALL NOT
APPLY--,
(1) TO ANY ASSETS OF A PLAN WHICH CONSIST OF INSURANCE
CONTRACTS OR POLICIES ISSUED BY AN INSURANCE COMPANY QUALIFIED TO
DO BUSINESS IN A STATE;
(2) TO ANY ASSETS OF SUCH AN INSURANCE COMPANY OR ANY ASSETS OF
A PLAN WHICH ARE HELD BY SUCH AN INSURANCE COMPANY;
(3) TO A PLAN--,
(I) SOME OR ALL OF THE PARTICIPANTS OF WHICH ARE EMPLOYEES
DESCRIBED IN SECTION 401 (C)(1) OF THE INTERNAL REVENUE CODE OF
1954; // 26 USC 401.// OR
(II) WHICH CONSISTS OF ONE OR MORE INDIVIDUAL RETIREMENT
ACCOUNTS DESCRIBED IN SECTION 408 OF THE INTERNAL REVENUE CODE OF
1954, //POST, P. 959.// TO THE EXTENT THAT SUCH PLAN'S ASSETS ARE
HELD IN ONE OR MORE CUSTODIAL ACCOUNTS WHICH QUALIFY UNDER SECTION
401(F) OR 408(H) OF SUCH CODE, WHICHEVER IS APPLICABLE;
(4) TO A PLAN WHICH THE SECRETARY EXEMPTS FROM THE REQUIREMENT
OF SUBSECTION (A) AND WHICH IS NOT SUBJECT TO ANY OF THE FOLLOWING
PROVISIONS OF THIS ACT--,
(5) TO A CONTRACT ESTABLISHED AND MAINTAINED UNDER SECTION 403
(B) OF THE INTERNAL REVENUE CODE OF 1954 //POST, P. 986.// TO THE
EXTENT THAT THE ASSETS OF THE CONTRACT ARE HELD IN ONE OR MORE
CUSTODIAL ACCOUNTS PURSUANT TO SECTION 403(B) (7) OF SUCH CODE.
//POST, P. 940.//
(C) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OR (3) OR SUBSECTION (D),
OR UNDER SECTION 4042 AND 4044 //POST, PP. 1021, 1025.// RELATING TO
TERMINATION OF INSURED PLANS), THE ASSETS OF A PLAN SHALL NEVER INURE TO
THE BENEFIT OF ANY EMPLOYER AND SHALL BE HELD FOR THE EXCLUSIVE PURPOSES
OF PROVIDING BENEFITS TO PARTICIPANTS IN THE PLAN AND THEIR
BENEFICIARIES AND DEFRAYING REASONABLE EXPENSES OF ADMINISTERING THE
PLAN.
(2) (A) IN THE CASE OF A CONTRIBUTION WHICH IS MADE BY AN EMPLOYER BY
A MISTAKE OF FACT, PARAGRAPH (1) SHALL NOT PROHIBIT THE RETURN OF SUCH
CONTRIBUTION TO THE EMPLOYER WITHIN ONE YEAR AFTER THE PAYMENT OF THE
CONTRIBUTION.
(B) IF A CONTRIBUTION IS CONDITIONED ON QUALIFICATION OF THE PLAN
UNDER SECTION 401, 403(A), OR 405(A) OF THE INTERNAL REVENUE CODE OF
1954, //26 USC 401, 403, 405.// AND IF THE PLAN DOES NOT QUALIFY , THEN
PARAGRAPH (1) SHALL NOT PROHIBIT THE RETURN OF SUCH CONTRIBUTION TO THE
EMPLOYER WITHIN ONE YEAR AFTER THE DATE OF DENIAL OF QUALIFICATION OF
THE PLAN.
(C) IF A CONTRIBUTION IS CONDITIONED UPON THE DEDUCTIBILITY OF THE
CONTRIBUTION UNDER SECTION 404 OF THE INTERNAL REVENUE CODE OF 1954,
//POST, P. 921.// THEN, TO THE EXTENT THE DEDUCTION IS DISALLOWED,
PARAGRAPH (1) SHALL NOT PROHIBIT THE RETURN TO THE EMPLOYER OF SUCH
CONTRIBUTION (TO THE EXTENT DISALLOWED) WITHIN ONE YEAR AFTER THE
DISALLOWANCE OF THE DEDUCTION.
(3) IN THE CASE OF A CONTRIBUTION WHICH WOULD OTHERWISE BE AN EXCESS
CONTRIBUTION (AS DEFINED IN SECTION 4972(B) OF THE INTERNAL REVENUE CODE
OF 1954) //POST, P. 955.// PARAGRAPH (1) SHALL NOT PROHIBIT A CORRECTING
DISTRIBUTION WITH RESPECT TO SUCH CONTRIBUTION FROM THE PLAN TO THE
EMPLOYER TO THE EXTENT PERMITTED IN SUCH SECTION TO AVOID PAYMENT OF AN
EXCISE TAX ON EXCESS CONTRIBUTIONS UNDER SUCH SECTION.
(D) (1) UPON TERMINATION OF A PENSION PLAN TO WHICH SECTION 4021 DOES
NOT APPLY AT THE TIME OF TERMINATION AND TO WHICH THIS PART APPLIES
(OTHER THAN A PLAN TO WHICH NO EMPLOYER CONTRIBUTIONS HAVE BEEN MADE)
THE ASSETSOF THE PLAN SHALL BE ALLOCATED IN ACCORDANCE WITH THE
PROVISIONS OF SECTION 4044 OF THIS ACT, //POST, P. 1025.// EXCEPT AS
OTHERWISE PROVIDED IN REGULATIONS OF THE SECRETARY.
SEC. 404. (A) (1) SUBJECT TO SECTIONS 403(C) AND (D), 4042, AND
4044, //ANTE, P. 876; POST, PP. 93, 197, 921, 1025.// A FIDUCIARY SHALL
DISCHARGE HIS DUTIES WITH RESPECT TO A PLAN SOLELY IN THE INTEREST OF
THE PARTICIPANTS AND BENEFICIARIES AND--,
(A) FOR THE EXCLUSIVE PURPOSE OF:
(I) PROVIDING BENEFITS TO PARTICIPANTS AND THEIR BENEFICIARIES;
AND
(II) DEFRAYING REASONABLE EXPENSES OF ADMINISTERING THE
PLAN;
(B) WITH THE CARE, SKILL, PRUDENCE, AND DILIGENCE UNDER THE
CIRCUMSTANCES THEN PREVAILING THAT A PRUDENT MAN ACTING IN A LIKE
CAPACITY AND FAMILIAR WITH SUCH MATTERS WOULD USE IN THE CONDUCT
OF AN ENTERPRISE OF A LIKE CHARACTER AND WITH LIKE AIMS;
(C) BY DIVERSIFYING THE INVESTMENT S OF THE PLAN SO AS TO
MINIMIZE THE RISK OF LARGE LOSSES, UNLESS UNDER THE CIRCUMSTANCES
IT IS CLEARLY PRUDENT NOT TO DO SO; AND
(D) IN ACCORDANCE WITH THE DOCUMENTS AND INSTRUMENTS GOVERNING
THE PLAN INSOFAR AS SUCH DOCUMENTS AND INSTRUMENTS ARE CONSISTENT
WITH THE PROVISIONS OF THIS TITLE.
(2) IN THE CASE OF AN ELIGIBLE INDIVIDUAL ACCOUNT PLAN (AS DEFINED IN
SECTION 407(D) (3)), THE DIVERSIFICATION REQUIREMENT OF PARAGRAPH (1)
(C) AND THE PRUDENCE REQUIREMENT (ONLY TO THE EXTENT THAT IT REQUIRES
DEVERSIFICATION) OF PARAGRAPH (!) (B) IS NOT VIOLATED BY ACQUISITION OR
HOLDING OF QUALIFYING EMPLOYER REAL PROPERTY OR QUALIFYING EMPLOYER
SECURITIES (AS DEFINED IN SECTION 407(D) (4) AND (5)).
(B) EXCEPT AS AUTHORIZED BY THE SECRETARY BY REGULATION, NO FIDUCIARY
MAY MAINTAIN THE INDICIA OF OWNERSHIP OF ANY ASSETS OF A PLAN OUTSIDE
THE JURISDICTION OF THE DISTRICT COURTS OF THE UNITED STATES.
(C) IN THE CASE OF PENSION PLAN WHICH PROVIDES FOR INDIVIDUAL ACCOUNT
AND PERMITS A PARTICIPANT OR BENEFICIARY TO EXERCISE CONTROL OVER ASSETS
IN HIS ACCOUNT, IF A PARTICIPANT OR BENEFICIARY EXERCISES CONTROL OVER
THE ASSETS IN HIS ACCOUNT (AS DETERMINED UNDER REGULATIONS OF THE
SECRETARY)--,
(1) SUCH PARTICIPANT OR BENEFICIARY SHALL NOT BE DEEMED TO BE A
FIDUCIARY BY REASON OF SUCH EXERCISE, AND
(2) NO PERSON WHO IS OTHERWISE A FIDUCIARY SHALL BE LIABLE
UNDER THIS PART FOR ANY LOSS, OR BY REASON OF ANY BREACH, WHICH
RESULTS FROM SUCH PARTICIPANT'S OR BENEFICIARY'S EXERCISE OF
CONTROL.
SEC. 405. (A) IN ADDITION TO ANY LIABILITY WHICH HE MAY HAVE UNDER
ANY OTHER PROVISION OF THIS PART, A FUDICIARY WITH RESPECT TO A PLAN
SHALL BE LIABLE FOR A BREACH OF FIDUCIARY RESPONSIBILITY OF ANOTHER
FIDUCIARY WITH RESPECT TO THE SAME PLAN IN THE FOLLOWING CIRCUMSTANCES:
(1) IF HE PARTICIPATES KNOWINGLY IN, OR KNOWINGLY UNDERTAKES TO
CONCEAL, AN ACT OR OMISSION OF SUCH OTHER FIDUCIARY, KNOWING SUCH
ACT OR OMISSION IS A BREACH;
(2) IF, BY HIS FAILURE TO COMPLY WITH SECTION 404(A)(1) IN THE
ADMINISTRATION OF HIS SPECIFIC RESPONSIBILITIES WHICH GIVE RISE TO
HIS STATUS AS A FIDUCIARY, HE HAS ENABLED SUCH OTHER FIDUCIARY TO
COMMIT A BREACH; OR
(3) IF HE HAS KNOWLEDGE OF A BREACH BY SUCH OTHER FIDUCIARY,
UNLESS HE MAKES REASONABLE EFFORTS UNDER THE CIRCUMSTANCES TO
REMEDY THE BREACH.
(B)(1) EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (D) AND IN SECTION
403(A) (1) AND (2), IF THE ASSETS OF A PLAN ARE HELD BY TWO OR MORE
TRUSTEES--,
(A) EACH SHALL USE REASONABLE CARE TO PREVENT A CO-TRUSTEE FROM
COMMITTING A BREACH; AND
(B) THEY SHALL JOINTLY MANAGE AND CONTROL THE ASSETS OF THE
PLAN, EXCEPT THAT NOTHING IN THIS SUBPARAGRAPH (B) SHALL PRECLUDE
ANY AGREEMENT, AUTHORIZED BY THE TRUST INSTRUMENT, ALLOCATING
SPECIFIC RESPONSIBILITIES, OBLIGATIONS, OR DUTIES AMONG TRUSTEES,
IN WHICH EVENT A TRUSTEE TO WHOM CERTAIN RESPONSIBILITIES
OBLIGATIONS, OR DUTIES HAVE NOT BEEN ALLOCATED SHALL NOT BE LIABLE
BY REASON OF THIS SUBPARAGRAPH (B) EITHER INDIVIDUALLY OR AS A
TRUSTEE FOR ANY LOSS RESULTING TO THE PLAN ARISING FROM THE ACTS
OR OMISSIONS ON THE PART OF ANOTHER TRUSTEE TO WHOM SUCH
RESPONSIBILITIES, OBLIGATIONS, OR DUTIES HAVE BEEN ALLOCATED.
(2) NOTHING IN THIS SUBSECTION SHALL LIMIT ANY LIABILITY THAT A
FIDUCIARY MAY HAVE UNDER SUBSECTION (A) OR ANY OTHER PROVISION OF THIS
PART.
(3) (A) IN THE CASE OF A PLAN THE ASSETS OF WHICH ARE HELD IN MORE
THAN ONE TRUST, A TRUSTEE SHALL NOT BE LIABLE UNDER PARAGRAPH (!) EXCEPT
WITH RESPECT TO AN ACT OR OMISSION OF A TRUSTEE OF A TRUST OF WHICH HE
IS A TRUSTEE.
(B) NO TRUSTEE SHALL BE LIABLE UNDER THIS SUBSECTION FOR FOLLOWING
INSTRUCTIONS REFERRED TO IN SECTION 403(A) (1).
(C) (1) THE INSTRUMENT UNDER WHICH A PLAN IS MAINTAINED MAY EXPRESSLY
PROVIDE FOR PROCEDURES (A) FOR ALLOCATING FIDUCIARY RESPONSIBILITIES
(OTHER THAN TRUSTEE RESPONSIBILITIES) AMONG NAMED FIDUCIARIES, AND (B)
FOR NAMED FIDUCIARIES TO DESIGNATE PERSONS OTHER THAN NAMED FIDUCIARIES
TO CARRY OUT FIDUCIARY RESPONSIBILITIES (OTHER THAN TRUSTEE
RESPONSIBILITIES) UNDER THE PLAN.
(2) IF A PLAN EXPRESSLY PROVIDES FOR A PROCEDURE DESCRIBED IN
PARAGRAPH (1), AND PURSUANT TO SUCH PROCEDURE ANY FIDCUIARY
RESPONSIBILITY OF A NAMED FIDUCIARY IS ALLOCATED TO ANY PERSON, OR A
PERSON IS DESIGNATED TO CARRY OUT ANY SUCH RESPONSIBILITY, THEN SUCH
NAMED FIDUCIARY SHALL NOT BE LIABLE FOR AN ACT OR OMISSION OF SUCH
PERSON IN CARRYING OUT SUCH RESPONSIBILITY EXCEPT TO THE EXTENT THAT--,
(A) THE NAMED FIDUCIARY VIOLATED SECTION 404(A) (1)--,
(I) WITH RESPECT TO SUCH ALLOCATION OR DESIGNATION,
(II) WITH RESPECT TO THE ESTABLISHMENT OR IMPLEMENTATION OF THE
PROCEDURE UNDER PARAGRAPH (1), OR
(III) IN CONTINUING THE ALLOCATION OR DESIGNATION; OR
(B) THE NAMED FIDUCIARY WOULD OTHERWISE BE LIABLE IN ACCORDANCE
WITH SUBSECTION (A) .
(3) FOR PURPOSES OF THIS SUBSECTION,THE TERM "TRUSTEE RESPONSIBILITY"
MEANS ANY RESPONSIBILITY PROVIDED IN THE PLAN'S TRUST INSTRUMENT (IF
ANY) TO MANAGE OR CONTROL THE ASSETS OF THE PLAN, OTHER THAN A POWER
UNDER THE TRUST INSTRUMENT OF A NAMED FIDUCIARY TO APPOINT AN INVESTMENT
MANAGER IN ACCORDANCE WITH SECTION 402(C) (3).
(D) (1) IF AN INVESTMENT MANAGER OR MANAGERS HAVE BEEN APPOINTED
UNDER SECTION 402(C) (3), THEN, NOTWITHSTANDING SUBSECTIONS (A) (2) AND
(3) AND SUBSECTION (B), NO TRUSTEE SSHALL BE LIABLE FOR THE ACTS OR
OMISSIONS OF SUCH INVSETMENT MANAGER OR MANAGERS, OR BE UNDER AN
OBLIGATION TO INVEST OR OTHERWISE MANAGE ANY ASSET OF THE PLAN WHICH IS
SUBJECT TO THE MANAGEMENT OF SUCH INVESTMENT MANAGER.
(2) NOTHING IN THIS SUBSECTION SHALL RELIEVE ANY TRUSTEE OF ANY
LIABILITY UNDER THIS PART FOR ANY ACT OF SUCH TRUSTEE.
SEC. 406. (A) EXCEPT AS PROVIDED IN SECTION 408:
(1) A FIDUCIARY WITH RESPECT TO A PLAN SHALL NOT CAUSE THE PLAN
TO ENGAGE IN A TRANSACTION, IF HE KNOWS OR SHOULD KNOW THAT SUCH
TRANSACTION CONSTITUTES A DIRECT OR INDIRECT--,
(A) SALE OR EXCHANGE, OR LEASING, OF ANY PROPERTY BETWEEN THE
PLAN AND A PARTY IN INTEREST;
(B) LENDING OF MONEY OR OTHER EXTENSION OF CREDIT BETWEEN THE
PLAN AND A PARTY IN INTEREST;
(C) FURNISHING OF GOODS, SERVICES, OR FACILITIES BETWEEN THE
PLAN AND A PARTY IN INTEREST;
(D) TRANSFER TO, OR USE BY OR FOR THE BENEFIT OF, A PARTY IN
INTEREST, OF ANY ASSETS OF THE PLAN; OR
(E) ACQUISITION, ON BEHALF OF THE PLAN, OF ANY EMPLOYER
SECURITY OR EMPLOYER REAL PROPERTY IN VIOLATION OF SECTION 407(
A).
(2) NO FIDUCIARY WHO HAS AUTHORITY OR DISCRETION TO CONTROL OR
MANAGE THE ASSETS OF A PLAN SHALL PERMIT THE PLAN TO HOLD ANY
EMPLOYER SECURITY OR EMPLOYER REAL PROPERTY IF HE KNOWS OR SHOULD
KNOW THAT HOLDING SUCH SECURITY OR REAL PROPERTY VIOLATES SECTION
407(A).
(B) A FIDUCIARY WITH RESPECT TO A PLAN SHALL NOT--,
(1) DEAL WITH THE ASSETS OF THE PLAN IN HIS OWN INTEREST OR FOR
HIS OWN ACCOUNT,
(2) IN HIS INDIVIDUAL OR IN ANY OTHER CAPACITY ACT IN ANY
TRANSACTION INVOLVING THE PLAN ON BEHALF OF A PARTY (OR REPRESENT
A PARTY) WHOSE INTERESTS ARE ADVERSE TO THE INTERESTS OF THE PLAN
OR THE INTERESTS OF ITS PARTICIPANTS OR BENEFICIARIES, OR
(3) RECEIVE ANY CONSIDERATION FOR HIS OWN PERSONAL ACCOUNT FROM
ANY PARTY DEALING WITH SUCH PLAN IN CONNECTION WITH A TRANSACTION
INVOLVING THE ASSETS OF THE PLAN.
(C) A TRANSFER OF REAL OR PERSONAL PROPERTY BY A PARTY IN INTEREST TO
A PLAN SHALL BE TREATED AS A SALE OR EXCHANGE IF THE PROPERTY IS SUBJECT
TO A MORTGAGE OR SIMILAR LIEN WHICH THE PLAN ASSUMES OR IF IT IS SUBJECT
TO A MORTGAGE OR SIMILAR LIEN WHICH A PARTY-IN-INTEREST PLACED ON THE
PREPERTY WITHIN THE !0-YEAR PERIOD ON THE DATE OF THE TRANSFER.
SEC. 407. (A) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION AND
SECTION 414:
(1) A PLAN MAY NOT ACQUIRE OR HOLD--,
(A) ANY EMPLOYER SECURITY WHICH IS NOT A QUALIFYING EMPLOYER
SECURITY, OR
(B) ANY EMPLOYER REAL PROPERTY WHICH IS NOT QUALIFYING EMPLOYER
REAL PROPERTY.
(2) A PLAN MAY NOT ACQUIRE ANY QUALIFYING EMPLOYER SECURITY OR
QUALIFYING EMPLOYER REAL PROPERTY, IF IMMEDIATELY AFTER SUCH
ACQUISITION THE AGGREGATE FAIR MARKET VALUE OF EMPLOYER SECURITIES
AND EMPLOYER REAL PROPERTY HELD BY THE PLAN EXCEEDS 10 PERCENT OF
THE FAIR MARKET VALUE OF THE ASSETS OF THE PLAN.
(3) (A) AFTER DECEMBER 31, 1984, A PLAN MAY NOT HOLD ANY
QUALIFYING EMPLOYER SECURITIES OR QUALIFYING EMPLOYER REAL
PROPERTY (OR BOTH) TO THE EXTENT THAT THE AGGREGATE FAIR MARKET
VALUE OF SUCH SECURITIES AND PEOPERTY DETERMINED ON DECEMBER 31,
1984, EXCEEDS 10 PERCENT OF THE GREATER OF--,
(I) THE FAIR MARKET VALUE OF THE ASSETS OF THE PLAN, DETERMINED
ON DECEMBER 31, 1984, OR
(II) THE FAIR MARKET VALUE OF THE ASSETS OF THE PLAN DETERMINED
ON JANUARY 1, 1975.
(B) SUBPARAGRAPH (A) OF THIS PARAGRAPH SHALL NOT APPLY TO ANY
PLAN WHICH ON ANY DATE AFTER DECEMBER 31, 1974; AND BEFORE
JANUARY 1, 1985, DID NOT HOLD EMPLOYER SECURITIES OR EMPLOYER REAL
PROPERTY (OR BOTH) THE AGGRAGATE FAIR MARKET VALUE OF WHICH
DETERMINED ON SUCH DATE EXCEEDED 10 PERCENT OF THE GREATER OF
(I) THE FAIR MARKET VALUE OF THE ASSETS OF THE PLAN, DETERMINED
ON SUCH DATE, OR
(II) THE FAIR MARKET VALUE OF THE ASSETS OF THE PLAN DETERMINED
ON JANUARY 1, 1975.
(4) (A) AFTER DECEMBER 31, 1979, A PLAN MAY NOT HOLD ANY
EMPLOYER SECURITIES OR EMPLOYER REAL PROPERTY IN EXCESS OF THE
AMOUNT SPECIFIED IN REGULATIONS UNDER SUBPARAGRAPH (B). THIS
SUBPARAGRAPH SHALL NOT APPLY TO A PLAN AFTER THE EARLIEST DATE
AFTER DECEMBER 31, 1974, ON WHICH IT COMPLIES WITH SUCH
REGULATIONS.
(B) NOT LATER THAN DECEMBER 31, 1976, THE SECRETARY SHALL
PRESCRIBE REGULATIONS WHICH SHALL HAVE THE EFFECT OF REQUIRING
THAT A PLAN DIVEST ITSELF OF 50 PERCENT OF THE HOLDINGS OF
EMPLOYER SECURITIES AND EMPLOYER REAL PROPERTY WHICH THE PLAN
WOULD BE REQUIRED TO DIVEST BEFORE JANUARY 1, 1985, UNDER
PARAGRAPH (2) OR SUBSECTION (C) (WHICHEVER IS APPLICABLE).
(B) (1) SUBSECTION (A) OF THIS SECTION SHALL NOT APPLY TO ANY
ACQUISITION OR HOLDING OF QUALIFYING WMPLOYER SECURITIES OR QUALIFYING
EMPLOYER REAL PROPERTY BY AN ELIGIBLE INDIVIDUAL ACCOUNT PLAN.
(2) CROSS REFERENCE.--,
(A) FOR EXEMPTION FROM DIVERSIFICATION REQUIREMENTS FOR HOLDING OF
QUALIFYING EMPLOYER SECURITIES AND QUALIFYING EMPLOYER REAL PROPERTY BY
ELIGIBLE INDIVIDUAL ACCOUNT PLANS, SEE SECTION 404(A)(2).
(B) FOR EXEM PTION FROM PROHIBITED TRANSACTIONS FOR CERTAIN
ACQUISITIONS OF QUALIFYING EMPLOYER SECURITIES AND QUALIFYING EMPLOYER
REAL PROPERTY WHICH ARE NOT IN VIOLATION OF 10 PERCENT LIMITATION, SEE
SECTION 408(E).
(C) FOR TRANSITIONAL RULES RESPECTING SECURITIES OR REAL PROPERTY
SUBJECT TO BINDING CONTRACTS IN EFFECT ON JUNE 30, 1974, SEE SECTION
414(C).
(C) (1) A PLAN WHICH MAKES THE ELECTION, UNDER PARAGRAPH (3) SHALL BE
TREATED AS SATISFYING THE REQUIREMENT OF SUBSECTION (A) (3) IF AND ONLY
IF EMPLOYER SECURITIES HELD ON ANY DATE AFTER DECEMBER 31, 1974 AND
BEFORE JANUARY 1, 1985 HAVE A FAIR MARKET VALUE, DETERMINED AS OF
DECEMBER 31, 1974, NOT IN EXCESS OF 10 PERCENT OF THE LESSER OF--,
(A) THE FAIR MARKET VALUE OF THE ASSETS OF THE PLAN DETERMINED
ON SUCH DATE (DISREGARDING ANY PORTION OF THE FAIR MARKET VALUE OF
EMPLOYER SECURITIES WHICH IS ATTRUBUTABLE TO APPRECIATION OF SUCH
SECURITIES AFTER DECEMBER 31, 1974) BUT NOT LESS THAN THE FAIR
MARKET VALUE OF PLAN ASSETS ON JANUARY 1, 1975, OR
(B) AN AMOUNT EQUAL TO THE SUM OF (I) THE TOTAL AMOUNT OF THE
CONTRIBUTIONS TO THE PLAN RECEIVED AFTER DECEMBER 31, 1974, AND
PRIOR TO SUCH DATE, PLUS (II) THE FAIR MARKET VALUE OF THE ASSETS
OF THE PLAN, DETERMINED ON JANUARY 1, 1975.
(2) FOR PURPOSES OF THIS SUBSECTION, IN THE CASE OF AN EMPLOYER
SECURITY HELD BY A PLAN AFTER JANUARY 1, 1975, THE OWNERSHIP OF WHICH IS
DERIVED FROM OWNERSHIP OF EMPLOYER SECURITIES HELD BY THE PLAN ON
JANUARY 1, 1975, OR FROM THE EXERCISE OF RIGHTS DERIVED FROM SUCH
OWNERSHIP, THE VALUE OF SUCH SECURITY HELD AFTER JANUARY 1, 1975, SHALL
BE BASED ON THE VALUE AS OF JANUARY 1, 1975, OF THE SECURITY FROM WHICH
OWNERSHIP WAS DERIVED. THE SECRETARY SHALL PRESCRIBE REGULATIONS TO
CARRY OUT THIS PARAGRAPH.
(3) AN ELECTION UNDER THIS PARAGRAPH MAY NOT BE MADE AFTER DECEMBER
31, 1975. SUCH AN ELECTION SHALL BE MADE IN ACCORDANCE WITH REGUALTIONS
PRESCRIBED BY THE SECRETARY, AND SHALL BE IRREVOCABLE. A PLAN MAY MAKE
AN ELECTION UNDER THIS PARAGRAPH ONLY IF ON JANUARY 1, 1975, THE PLAN
HOLDS NO EMPLOYER REAL PROPERTY. AFTER SUCH ELECTION AND BEFORE JANUARY
1, 1985 THE PLAN MAY NOT ACQUIRE ANY EMPLOYER REAL PROPERTY.
(D) FOR PURPOSES OF THIS SECTION--,
(1) THE TERM "EMPLOYER SECURITY" MEANS A SECURITY ISSUED BY AN
EMPLOYER OF EMPLOYEES COVERED BY THE PLAN, OR BY AN AFFILIATE OF
SUCH EMPLOYER. A CONTRACT TO WHICH SECTION 408(B) (5) APPLIES
SHALL NOT BE TREATED AS A SECURITY FOR PURPOSES OF THIS SECTION.
(2) THE TERM "EMPLOYER REAL PROPERTY" MEANS REAL PROPERTY (AND
RELATED PERSONAL PROPERTY) WHICH IS LEASED TO AN EMPLOYER OF
EMPLOYEES COVERED BY THE PLAN, OR TO AN AFFILIATE OF SUCH
EMPLOYER. FOR PURPOSES OF DETERMINING THE TIME AT WHICH A PLAN
ACQUIRES EMPLOYER REAL PROPERTY FOR PURPOSES OF THIS SECTION, SUCH
PROPERTY SHALL BE DEEMED TO BE ACQUIRED BY THE PLAN ON THE DATE ON
WHICH THE PLAN ACQUIRES THE PROPERTY OR ON THE DATE ON WHICH THE
LEASE TO THE EMPLOYER (OR AFFILIATE) IS ENTERED INTO, WHICHEVER IS
LATER.
(3) (A) THE TERM "ELIGIBLE INDIVIDUAL ACCOUNT PLAN" MEANS AN
INDIVIDUAL ACCOUNT PLAN WHICH IS (I) A PROFIT-SHARING, STOCK
BONUS, THRIFT, OR SAVINGS PLAN; (II) AN EMPLOYEE STOCK OWNERSHIP
PLAN; OR (III) A MONEY PURCHASE PLAN WHICH WAS IN EXISTENCE ON
THE DATE OF ENACTMENT OF THIS ACT AND WHICH ON SUCH DATE INVESTED
PRIMARILY IN QUALIFYING EMPLOYER SECURITIES. SUCH TERM EXCLUDES
AN INDIVIDUAL RETIREMENT ACCOUNT OR ANNUITY DESCRIBED IN SECTION
408 OF THE INTERNAL REVENUE CODE OF 1954. //POST, P. 959.//
(B) NOTWITHSTANDING SUBPARAGRAPH (A), A PLAN SHALL BE TREATED
AS AN ELIGIBLE INDIVIDUAL ACCOUNT PLAN WITH RESPECT TO THE
ACQUISITION OR HOLDING OF QUALIFYING EMPLOYER REAL PROPERTY OR
QUALIFYING EMPLOYER SECURITIES ONLY IF SUCH PLAN EXPLICITLY
PROVIDES FOR ACQUISITION AND HOLDING OF QUALIFYING EMPLOYER
SECURITIES OR QUALIFYING EMPLOYER REAL PROPERTY (AS THE CASE MAY
BE). IN THE CASE OF A PLAN IN EXISTENCEON THE DATE OF ENACTMENT
OF THIS ACT, THIS SUBPARAGRAPH SHALL NOT TAKE EFFECT UNTIL JANUARY
1, 1976.
(4) THE TERM "QUALIFYING EMPLOYER REAL PROPERTY" MEANS
PARCELS
PARCELS OF EMPLOYER REAL PROPERTY--,
(A) IF A SUBSTANTIAL NUMBER OF THE PARCELS ARE DISPERSED
GEOGRAPHICALLY;
(B) IF EACH PARCEL OF REAL PROPERTY AND THE IMPROVEMENTS
THEREON ARE SUITABLE (OR ADAPTABLE WITHOUT EXCESSIVE COST) FOR
MORE THAN ONE USE;
(C) EVEN IF ALL OF SUCH REAL PROPERTY IS LEASED TO ONE LESSEE
(WHICH MAY BE AN EMPLOYER, OR AN AFFILIATE OF AN EMPLOYER);
(D) IF THE ACQUISITION AND RETENTION OF SUCH PROPERTY COMPLY
WITH THE PROVISIONS OF THIS PART (OTHER THAN SECTION 404 (A) (1)
(B) TO THE EXTENT IT REQUIRES DIVERSIFICATION, AND SECTIONS 404
(A) (1) (C), 406, AND SUBSECTION (A) OF THIS SECTION).
(5) THE TERM "QUALIFYING EMPLOYER SECURITY" MEANS AN EMPLOYER
SECURITY WHICH IS STOCK OR A MARKETABLE OBLIGATION (AS DEFINED IN
SUBSECTION (E)).
(6) THE TERM "EMPLOYEE STOCK OWNERSHIP PLAN" MEANS AN
INDIVIDUAL ACCOUNT PLAN--,
(A) WHICH IS A STOCK BONUS PLAN WHICH IS QUALIFIED, OR A STOCK
BONUS PLAN AND MONEY PURCHASE BOTH OF WHICH ARE QUALIFIED, UNDER
SECTION 401 OF THE INTERNAL REVENUE CODE OF 1954, //26 USC 401.//
AND WHICH IS DESIGNED TO INVEST PRIMARILY IN QUALIFYING EMPLOYEE
SECURITIES, AND
(B) WHICH MEETS SUCH OTHER REQUIREMENTS AS THE SECRETARY OF THE
TREASURY MAY PRESCRIBE BY REGULATION.
(7) A CORPORATION IS AN AFFILIATE OF AN EMPLOYER IF IT IS A
MEMBER OF ANY CONTROLLED GROUP OF CORPORATIONS (AS DEFINED IN
SECTION 1563(A) OF THE INTERNAL REVENUE CODE OF 1954, //26 USC
1563.// EXCEPT THAT "APPLICABLE PERCENTAGE" SHALL BE SUBSTITUTED
FOR "80 PERCENT" WHEREVER THE LATTER PERCENTAGE APPEARS IN SUCH
SECTION) OF WHICH THE EMPLOYER WHO MAINTAINS THE PLAN IS A MEMBER.
FOR PURPOSES OF THE PRECEDING SENTENCE, THE TERM "APPLICABLE
PERCENTAGE" MEANS 50 PERCENT, OR SUCH LOWER PERCENTAGE AS THE
SECRETARY MAY PRESCRIBE BY REGULATION. A PERSON OTHER THAN A
CORPORATION SHALL BE TREATED AS AN AFFILIATE OF AN EMPLOYER TO THE
EXTENT PROVIDED IN REGULATIONS OF THE SECRETARY. AN EMPLOYER
WHICH IS A PERSON OTHER THAN A CORPORATION SHALL BE TREATED AS
AFFILIATED WITH ANOTHER PERSON TO THE EXTENT PROVIDED BY
REGULATIONS OF THE SECRETARY. REGULATIONS UNDER THIS PARAGRAPH
SHALL BE PRESCRIBED ONLY AFTER CONSULTATION AND COORDINATION WITH
THE SECRETARY OF THE TREASURY.
(8) THE SECRETARY MAY PRESCRIBE REGULATIONS SPECIFYING THE
EXTENT TO WHICH CONVERSIONS, SPLITS, THE EXERCISE OF RIGHTS, AND
SIMILAR TRANSACTIONS ARE NOT TREATED AS ACQUISITIONS.
(E) FOR PURPOSES OF SUBSECTION (D)(5), THE TERM "MARKETABLE
OBLIGATION" MEANS A BOND, DEBENTURE, NOTE, OR CERTIFICATE, OR OTHER
EVIDENCE OF INDEBTEDNESS (HEREINAFTER IN THIS SUBSECTION REFERRED TO AS
" OBLIGATION") IF--,
(1) SUCH OBLIGATION IS ACQUIRED--,
(A) ON THE MARKET, EITHER (I) AT THE PRICE OF THE OBLIGATION
PREVAILING ON A NATIONAL SECURITIES EXCHANGE WHICH IS REGISTERED
WITH THE SECURITIES AND EXCHANGE COMMISSION, OR (II) IF THE
OBLIGATION IS NOT TRADED ON SUCH A NATIONAL SECURITIES EXCHANGE,
AT A PRICE NOT LESS FAVORABLE TO THE PLAN THAN THE OFFERING PRICE
FOR THE OBLIGATION AS ESTABLISHED BY CURRENT BID AND ASKED PRICES
QUOTED BY PERSONS INDEPENDENT OF THE ISSUER;
(B) FROM AN UNDERWRITER, AT A PRICE (I) NOT IN EXCESS OF THE
PUBLIC OFFERING PRICE FOR THE OBLIGATION AS SET FORTH IN A
PROSPECTUS OR OFFERING CIRCULAR FILED WITH THE SECURITIES AND
EXCHANGE COMMISSION, AND (II) AT WHICH A SUBSTANTIAL PORTION OF OF
THE SAME ISSUE IS ACQUIRED BY PERSONS INDEPENDENT OF THE ISSUER;
OR
(C) DIRECTLY FROM THE ISSUER, AT A PRICE NOT LESS FAVORABLE TO
THE PLAN THAN THE PRICE PAID CURRENTLY FOR A SUBSTANTIAL PORTION
OF THE SAME ISSUE BY PERSONS INDEPENDENT OF THE ISSUER;
(2) IMMEDIATELY FOLLOWING ACQUISITION OF SUCH OBLIGATION--
(A) NOT MORE THAN 25 PERCENT OF THE AGGREGATE AMOUNT OF
OBLIGATIONS ISSUED IN SUCH ISSUE AND OUTSTANDING AT THE TIME OF
ACQUISITION IS HELD BY THE PLAN, AND
(B) AT LEAST 50 PERCENT OF THE AGGREGATE AMOUNT REFERRED TO IN
SUBPARAGRAPH (A) IS HELD BY PERSONS INDEPENDENT OF THE ISSUER;
AND
(3) IMMEDIATELY FOLLOWING ACQUISITION OF THE OBLIGATION, NOT
MORE THAN 25 PERCENT OF THE ASSETS OF THE PLAN IS INVESTED IN
OBLIGATIONS OF THE EMPLOYER OR AN AFFILIATE OF THE EMPLOYER.
SEC. 408. (A) THE SECRETARY SHALL ESTABLISH AN EXEMPTION PROCEDURE
FOR PURPOSES OF THIS SUBSECTION. PURSUANT TO SUCH PROCEDURE, HE MAY
GRANT A CONDITIONAL OR UNCONDITIONAL EXEMPTION OF ANY FIDUCIARY OR
TRANSACTION, OR CLASS OF FIDUCIARIES OR TRANSACTION, FROM ALL OR PART OF
THE RESTRICTIONS IMPOSED BY SECTIONS 406 AND 407(A). ACTION UNDER THIS
SUBSECTION MAY BE TAKEN ONLY AFTER CONSULTATION AND COORDINATION WITH
THE SECRETARY OF THE TREASURY. AN EXEMPTION GRANTED UNDER THIS SECTION
SHALL NOT RELIEVE A FIDUCIARY FROM ANY OTHER APPLICABLE PROVISION OF
THIS ACT. THE SECRETARY MAY NOT GRANT AN EXEMPTION UNDER THIS
SUBSECTION UNLESS HE FINDS THAT SUCH EXEMPTION IS--,
(1) ADMINISTRATIVELY FEASIBLE,
(2) IN THE INTERESTS OF THE PLAN AND OF ITS PARTICIPANTS AND
BENEFICIARIES, AND
(3) PROTECTIVE OF THE RIGHTS OF PARTICIPANTS AND BENEFICIARIES
OF SUCH PLAN.
BEFORE GRANTING AN EXEMPTION UNDER THIS SUBSECTION FROM SECTION 406 (A)
OR 407(A), THE SECRETARY SHALL PUBLISH NOTICE IN THE FEDERAL REGISTER OF
THE PENDENCY OF THE EXEMPTION, SHALL REQUIRE THAT ADEQUATE NOTICE BE
GIVEN TO INTERESTED PERSONS, AND SHALL AFFORD INTERESTED PERSONS
OPPORTUNITY TO PRESENT VIEWS. THE SECRETARY MAY NOT GRANT AN EXEMPTION
UNDER THIS SUBSECTION FROM SECTION 406(B) UNLESS HE AFFORDS AN
OPPORTUNITY FOR A HEARING AND MAKES A DETERMINATION ON THE RECORD WITH
RESPECT TO THE FINDINGS REQUIRED BY PARAGRAPHS (1), (2), AND (3) OF THIS
SUBSECTION.
(B) THE PROHIBITIONS PROVIDED IN SECTION 406 SHALL NOT APPLY TO ANY
OF THE FOLLOWING TRANSACTIONS:
(1) ANY LOANS MADE BY THE PLAN TO PARTIES IN INTEREST WHO ARE
PARTICIPANTS OR BENEFICIARIES OF THE PLAN IF SUCH LOANS (A) ARE
AVAILABLE TO ALL SUCH PARTICIPANTS AND BENEFICIARIES ON A
REASONABLY EQUIVALENT BASIS, (B) ARE NOT MADE AVAILABLE TO HIGHLY
COMPENSATED EMPLOYEES, OFFICERS, OR SHAREHOLDERS IN AN AMOUNT
GREATER THAN THE AMOUNT MADE AVAILABLE TO OTHER EMPLOYEES, (C) ARE
MADE IN ACCORDANCE WITH SPECIFIC PROVISIONS REGARDING SUCH LOANS
SET FORTH IN THE PLAN, (D) BEAR A REASONABLE RATE OF INTEREST, AND
(E) ARE ADEQUATELY SECURED.
(2) CONTRACTING OR MAKING REASONABLE ARRANGEMENTS WITH A PARTY
IN INTEREST FOR OFFICE SPACE, OR LEGAL, ACCOUNTING, OR OTHER
SERVICES NECESSARY FOR THE ESTABLISHMENT OR OPERATION OF THE PLAN,
IF NO MORE THAN REASONABLE COMPENSATION IS PAID THEREFOR.
(3) A LOAN TO AN EMPLOYEE STOCK OWNERSHIP PLAN (AS DEFINED IN
SECTION 407(D) (6)), IF--,
(A) SUCH LOAN IS PRIMARILY FOR THE BENEFIT OF PATRICIPANTS AND
BENEFICIARIES OF THE PLAN, AND
(B) SUCH LOAN IS AT AN INTEREST RATE WHICH IS NOT IS EXCESS OF
A REASONABLE RATE. IF THE PLAN GIVES COLLATERAL TO A PARTY IN
INTEREST FOR SUCH LOAN, SUCH COLLATERAL MAY CONSIST ONLY OF
QUALIFYING EMPLOYER SECURITIES (AS DEFINED IN SECTION 407(D) (5)).
(4) THE INVESTMENT OF ALL OR PART OF A PLAN'S ASSETS IN
DEPOSITS WHICH BEAR A REASONABLE INTEREST RATE IN A BANK OR
SIMILAR FINANCIAL INSTITUTION SUPERVISED BY THE UNITED STATES OR A
STATE, IF SUCH BANK OR OTHER INSTITUTION IS A FIDUCIARY OF SUCH
PLAN AND IF--,
(A) THE PLAN COVERS ONLY EMPLOYEES OF SUCH BANK OR OTHER
INSTITUTION AND EMPLOYEES OF AFFILIATES OF SUCH BANK OR OTHER
INSTITUTION, OR
(B) SUCH INVESTMENT IS EXPRESSLY AUTHORIZED BY A PROVISION OF
THE PLAN OR BY A FIDUCIARY (OTHER THAN SUCH BANK OR INSTITUTION OR
AFFILIATE THEREOF) WHO IS EXPRESSLY EMPOWERED BY THE PLAN TO SO
INSTRUCT THE TRUSTEE WITH RESPECT TO SUCH INVESTMENT.
(5) ANY CONTRACT FOR LIFE INSURANCE, HEALTH INSURANCE, OR
ANNUITIES WITH ONE OR MORE INSURERS WHICH ARE QUALIFIED TO DO
BUSINESS IN A STATE, IF THE PLAN PAYS NO MORE THAN ADEQUATE
CONSIDERATION, AND IF EACH SUCH INSURER OR INSURERS IS--,
(A) THE EMPLOYER MAINTAINING THE PLAN, OR
(B) A PARTY IN INTEREST WHICH IS WHOLLY OWNED (DIRECTLY OR
INDIRECTLY) BY THE EMPLOYER MAINTAINING THE PLAN, OR BY ANY PERSON
WHICH IS A PARTY IN INTEREST WITH RESPECT TO THE PLAN, BUT ONLY IF
THE TOTAL PREMIUMS AND ANNUITY CONSIDERATIONS WRITTEN BY SUCH
INSURERS FOR LIFE INSURANCE, HEALTH INSURANCE, OR ANNUITIES FOR
ALL PLANS (AND THEIR EMPLOYERS) WITH RESPECT TO WHICH SUCH
INSURERS ARE PARTIES IN INTEREST (NOT INCLUDING PREMIUMS OR
ANNUITY CONSIDERATIONS WRITTEN BY THE EMPLOYER MAINTAINING THE
PLAND DO NOT EXCEED 5 PERCENT OF THE TOTAL INSURANCE IN THAT YEAR
BY SUCH INSURERS (NOT INCLUDING PREMIUMS OR ANNUITY CONSIDERATIONS
WRITTEN BY THE EMPLOYER MAINTAINING THE PLAN).
(6) THE PROVIDING OF ANY ANCILLARY SERVICE BY A BANK OR SIMILAR
FINANCIAL INSTITUTION SUPERVISED BY THE UNITED STATES OR A STATE,
IF SUCH BANK OR OTHER INSTITUTION IS A FIDUCIARY OF SUCH PLAN, AND
IF--,
(A) SUCH BANK OR SIMILAR FINANCIAL INSTITUTION HAS ADOPTED
ADEQUATE INTERNAL SAFEGUARDS WHICH ASSURE THAT THE PROVIDING OF
SUCH ANCILLARY SERVICE IS CONSISTENT WITH SOUND BANKING AND
FINANCIAL PRACTICE, AS DETERMINED BY FEDERAL OR STATE SUPERVISORY
AUTHORITY, AND
(B) THE EXTENT TO WHICH SUCH ANCILLARY SERVICE IS PROVIDED IS
SUBJECT TO SPECIFIC GUIDELINES ISSUED BY SUCH BANK OR SIMILAR
FINANCIAL INSTITUTION (AS DETERMINED BY THE SECRETARY AFTER
CONSULTATION WITH FEDERAL AND STATE SUPERVISORY AUTHORITY), AND
ADHERENCE TO SUCH GUIDELINES WOULD REASONABLY PRECLUDE SUDH BANK
OR SIMILAR FINANCIAL INSTITUTION FROM PROVIDING SUCH ANCILLARY
SERVICE (I) IN AN EXCESSIVE OR UNREASONABLE MANNER, AND (IT) IN A
MANNER THAT WOULD BE INCONSISTENT WITH THE BEST INTERESTS OF
PARTICIPANTS AND BENEFICIARIES OF EMPLOYEE BENEFIT PLANS. SUCH
ANCILLARY SERVICES SHALL NOT BE PROVIDED AT MORE THAN REASONABLE
COMPENSATION.
(7) THE EXERCISE OF A PRIVILEGE TO CONVERT SECURITIES, TO
EXTENT PROVIDED IN REGULATIONS OF THE SECRETARY, BUT ONLY IF THE
PLAN RECEIVES NO LESS THAN ADEQUATE CONSIDERATION PURSUANT TO SUCH
CONVERSION.
(8) ANY TRANSACTION BETWEEN A PLAN AND (I) A COMMON OR
COLLECTIVE TRUST FUND OR POOLED INVESTMENT FUND MAINTAINED BY A
PARTY IN INTEREST WHICH IS A BANK OR TRUST COMPANY SUPERVISED BY A
STATE OR FEDERAL AGENCY OR (II) A POOLED INVESTMENT FUND OF AN
INSURANCE COMPANY QUALIFIED TO DO BUSINESS IN A STATE, IF--
(A) SUCH TRANSACTION IS A SALE OR PURCHASE OF AN INTEREST IN
THE FUND,
(B) THE BANK, TRUST COMPANY, OR INSURANCE COMPANY RECEIVES NOT
MORE THAN REASONABLE COMPENSATION, AND
(C) SUCH TRANSACTION IS EXPRESSLY PERMITTED BY THE INSTRUMENT
UNDER WHICH THE PLAN IS MAINTAINED, OR BY A FIDUCIARY (OTHER THAN
THE BANK, TRUST COMPANY, OR INSURANCE COMPANY, OR AN AFFILIATE
THEREOF) WHO HAS AUTHORITY TO MANAGE AND CONTROL THE ASSETS OF THE
PLAN.
(9) THE MAKING BY A FIDUCIARY OF A DISTRIBUTION OF THE ASSETS
ARE DISTRIBUTED IN THE SAME MANNER AS PROVIDED UNDER SECTION 4044
OF THIS ACT (RELATION TO ALLOCATION OF ASSETS). //POST, P.
1025.//
(C) NOTHING IN SECTION 406 SHALL BE CONSTRUED TO PROHIBIT ANY
ANY FIDUCIARY FROM--,
(1) RECEIVING ANY BENEFIT TO WHICH HE MAY BE ENTITLED AS A
PARTICIPANT OR BENEFICIARY IN THE PLAN, SO LONG AS THE BENEFIT IS
COMPUTED AND PAID ON A BASIS WHICH IS CONSISTENT WITH THE TERMS OF
THE PLAN AS APPLIED TO ALL OTHER PARTICIPANTS AND BENEFICIARIES;
(2) RECEIVING ANY REASONABLE COMPENSATION FOR SERVICES
RENDERED, OR THE THE REIMBURSEMENT OF EXPENSES PROPERLY AND
ACTUALLY INCURRED, IN THE PERFORMANCE OF HIS DUTIES WITH THE PLAN;
EXCEPT THAT NO PERSON SO SERVING WHO ALREADY RECEIVES FULL-TIME
PAY FROM AN EMPLOYER OR AN ASSOCIATION OF EMPLOYERS, WHOSE
EMPLOYEES ARE PARTICIPANTS IN THE PLAN, OR FROM AN EMPLOYEE
ORGANIZATION WHOSE MEMBERS ARE PARTICIPANTS IN SUCH PLAN SHALL
RECEIVE COMPENSATION FROM SUCH PLAN, EXCEPT FOR REIMBURSEMENT OF
EXPENSES PROPERLY AND ACTUALLY INCURRED; OR
(3) SERVING AS A FIDUCIARY IN ADDITION TO BEING AN OFFICER,
EMPLOYEE, AGENT, OR OTHER REPRESENTATIVE OF A PARTY IN INTEREST.
(D) SECTION 407(B) AND SUBSECTIONS (A), (B), (C), AND (E) OF
THIS SECTION SHALL NOT APPLY TO ANY TRANSACTION IN WHICH A PLAN,
DIRECTLY OR INDIRECTLY--,
(1) LENDS ANY PART OF THE CORPUS OR INCOME OF THE PLAN TO;
(2) PAYS ANY COMPENSATION FOR PERSONAL SERVICES RENDERED TO THE
PLAN TO; OR
(3) ACQUIRES FOR THE PLAN ANY PROPERTY FROM OR SELLS ANY
PROPERTY TO;
ANY PERSON WHO IS WITH RESPECT TO THE PLAN AN OWNER-EMPLOYEE (AS DEFINED
IN SECTION 401(C) (3) OF THE INTERNAL REVENUE CODE OF 1954), //26 USC
401.// A MEMBER OF THE FAMILY (AS DEFINED IN SECTION 267(C) (4) OF SUCH
CODE) //26 USC 267.// OF ANY SUCH OWNER-EMPLOYEE, OR A CORPORATION
CONTROLLED BY ANY SUCH OWNER-EMPLOYEE THROUGH THE OWNERSHIP, DIRECTLY OR
INDIRECTLY, OF 50 PERCENT OR MORE OF THE TOTAL COMBINED VOTING POWER OF
ALL CLASSES OF STOCK ENTITLED TO VOTE OR 50 PERCENT OR MORE OF THE TOTAL
VALUE OF SHARES OF ALL CLASSES OF STOCK OF THE CORPORATION. FOR
PURPOSES OF THIS SUBSECTION A SHAREHOLDER EMPLOYEE (AS DEFINED IN
SECTION 1379 OF THE INTERNAL REVENUE CODE OF 1954) //26 USC 1379.// AND
A PARTICIPANT OR BENEFICIARY OF AN INDIVIDUAL RETIREMENT ACCOUNT,
INDIVIDUAL RETIREMENT ANNUITY, OR AN INDIVIDUAL RETIREMENT BOND (AS
DEFINED IN SECTION 408 OR 409 OF THE INTERNAL REVENUE CODE OF 1954)
//POST, PP. 959, 964.// AND AN EMPLOYER OR ASSOCIATION OF EMPLOYERS
WHICH ESTABLISHES SUCH AN ACCOUNT OR ANNUITY UNDER SECTION 408(C) OF
SUCH CODE SHALL BE DEEMED TO BE AN OWNER-EMPLOYEE.
(E) SECTIONS 406 AND 407 SHALL NOT APPLY TO THE ACQUISITION OR SALE
BY A PLAN OF QUALIFYING EMPLOYER SECURITIES (AS DEFINED IN SECTION 407
(D) (5)) OR ACQUISITION, SALE OR LEASE BY A PLAN OF QUALIFYING EMPLOYER
REAL PROPERTY (AS DEFINED IN SECTION 407(D) (4))--,
(1) IF SUCH ACQUISITION, SALE, OR LEASE IS FOR ADEQUATE
CONSIDERATION (OR IN THE CASE OF A MARKETABLE OBLIGATION, AT A
PRICE NOT LESS FABORABLE TO THE PLAN THAN THE PRICE DETERMINED
UNDER SECTION 407(E) (1)),
(2) IF NO COMMISSION IS CHARGED WITH RESPECT THERETO, AND
(3) IF--,
(A) THE PLAN IS AN ELIGIBLE INDIVIDUAL ACCOUNT PLAN (AS DEFINED
IN SECTION 407(D) (3)), OR
(B) IN THE CASE OF AN ACQUISITION OR LEASE OR QUALIFYING
EMPLOYER REAL PROPERTY BY A PLAN WHICH IS NOT AN ELIGIBLE
INDIVIDUAL ACCOUNT PLAN, OR OF AN ACQUISITION OF QUALIFYING
EMPLOYER SECURITIES BY SUCH A PLAN, THE LEASE OR ACQUISITION IS
NOT PROHIBITED BY SECTION 407(A).
SEC. 409. (A) ANY PERSON WHO IS A FIDUCIARY WITH RESPECT TO A PLAN
WHO BREACHES ANY OF THE RESPONSIBILITIES, OBLIGATIONS, OR DUTIES IMPOSED
UPON FIDUCIARIES BY THIS TITLE SHALL BE PERSONALLY LIABLE TO MAKE GOOD
TO SUCH PLAN ANY LOSSES TO THE PLAN RESULTING FROM EACH SUCH BREACH, AND
TO RESTORE TO SUCH PLAN ANY PPROFITS OF SUCH FIDUCIARY WHICH HAVE BEEN
MADE THROUGH USE OF ASSETS OF THE PLAN BY THE FIDUCIARY, AND SHALL BE
SUBJECT TO SUCH OTHER EQUITABLE OR REMEDIAL RELIEF AS THE COURT MAY DEEM
APPROPRIATE, INCLUDING REMOVAL OF SUCH FIDUCIARY. A FUDICIARY MAY ALSO
BE REMOVED FOR A VIOLATION OF SECTION 411 OF THIS ACT.
(B) NO FIDUCIARY SHALL BE LIABLE WITH RESPECT TO A BREACH OF
FIDUCIARY DUTY UNDER THIS TITLE IF SUCH BREACH WAS COMMITTED BEFORE HE
BECAME A FIDUCIARY OR AFTER HE CEASED TO BE A FIDUCIARY.
SEC. 410. (A) EXCEPT AS PROVIDED IN SECTIONS 405(B) (1) AND 405(D),
ANY PROVISION IN AN AGREEMENT OR INSTRUMENT WHICH PRUPORTS TO RELIEVE A
FIDUCIARY FROM RESPONSIBILITY OR LIABILITY FOR ANY RESPONSIBILITY,
OBLIGATION, OR DUTY UNDER THIS PART SHALL BE VOID AS AGAINST PUBLIC
POLICY.
(B) NOTHING IN THIS SUBPART SHALL PRECLUDE--,
(1) A PLAN FROM PURCHASING INSURANCE FOR ITS FIDUCIARIES OR FOR
ITSELF TO COVER LIABILITY OR LOSSES OCCURRING BY REASON OF THE ACT
OR OMISSION OF A FIDUCIARY, IF SUCH INSURANCE PERMITS RECOURSE BY
THE INSURER AGAINST THE FIDUCIARY IN THE CASE OF A BREACH OF A
FIDUCIARY OBLIGATION BY SUCH FIDUCIARY;
(2) A FIDUCIARY FROM PURCHASING INSURANCE TO COVER LIABILITY
UNDER THIS PART FROM AND FOR HIS OWN ACCOUNT; OR
(3) AN EMPLOYER OR AN EMPLOYEE ORGANIZATION FROM PURCHASING
INSURANCE TO COVER POTENTIAL LIABILITY OF ONE OR MORE PERSONS WHO
SERVE IN A FIDUCIARY CAPACITY WITH REGARD TO AN EMPLOYEE BENEFIT
PLAN.
SEC. 411. (A) NO PERSON WHO HAS BEEN CONVICTED OF, OR HAS BEEN
IMPRISONED AS A RESULT OF HIS CONVICTION OF, ROBBERY, BRIBERY,
EXTORTION, EMBEZZLEMENT, FRAUD, GRAN LARCENY, BURGLARY, ARSON, A FELONY
VIOLATION OF FEDERAL OR STATE LAW INVOLVING SUBSTANCES DEFINED IN
SECTION 102(6) OF THE COMPREHENSIVE DRUG ABUSE PREVENTION AND CONTROL
ACT OF 1970, //21 USC 802.// MURDER, RAPE, KIDNAPING, PERJURY, ASSAULT
WITH INTENT TO KILL, ANY CRIME DESCRIBED IN SECTION 9(A) (1) OF THE
INVESTMENT COMPANY ACT OF 1940 (15 U.S.C. 80A - 9(A) (1), A VIOLATION OF
ANY PROVISION OF THIS ACT, A VIOLATION SO SECTIO 302 OF THE
LABOR-MANAGEMENT RELATIONS ACT, 1947 (29 U.S.C. 186), A VIOLATION OF
CHAPTER 63 OF TITLE 18, UNITED STATES CODE, //18 USC 1341.// A VIOLATION
OF SECTION 874,1027, 1503, 1505, 1506, 1510, 1951, OR 1954 OF TITLE 18,
UNITED STATES CODE, A VIOLATION OF THE LABOR-MANAGEMENT REPORTING AND
DISCLOSURE ACT OF 1959 (29U.S.C. 401), OR CONSPIRACY TO COMMIT ANY SUCH
CRIMES OR ATTEMPT TO COMMIT ANY SUCH CRIMES, OR A CRIME IN WHICH ANY OF
THE FOREGOINGCRIMES IS AN ELEMENT, SHALL SERVE OR BE PERMITTED TO
SERVE--,
(1) AS AN ADMINISTRATOR, FIDUCIARY, OFFICER, TRUSTEE,
CUSTODIAN, COUNSEL, AGENT, OR EMPLOYEE OF ANY EMPLOYEE BENEFIT
PLAN, OR
(2) AS A CONSULTANT TO ANY EMPLOYEE BENEFIT PLAN,
DURING OR FOR FIVE YEARS AFTER SUCH CONVICTION OR AFTER THE END OF SUCH
IMPRISONMENT, WHICHEVER IS THE LATER, UNLESS PRIOR TO THE END OF SUCH
FIVE-YEAR PERIOD, IN THE CASE OF A PERSON SO CONVICTED OR IMPRISONED,
(A) HIS CITIZENSHIP RIGHTS, HAVING BEEN REVOKED AS A RESULT OF SUCH
CONVICTION, HAVE BEEN FULLY RESTORED, OR (B) THE BOARD OF PAROLE OF THE
UNITED STATES DEPARTMENT OF JUSTICE DETERMINES THAT SUCH PERSON'S
SERVICE IN ANY CAPACITY REFERRED TO IN PARAGRAPH (1) OR (2) WOULD NOT BE
CONTRARY TO THE PURPOSES OF THIS TITLE. PRIOR TO MAKING ANY SUCH
DETERMINATION THE BOARD SHALL HOLD AN ADMINISTRATIVE HEARING AND SHALL
GIVE NOTICE OF SUCH PROCEEDING BY CERTIFIED MAIL TO THE STATE, COUNTY,
AND FEDERAL PROSECUTING OFFICIALS IN THE JURISDICTION OR JURISDICTIONS
IN WHICH SUCH PERSON WAS CONVICTED. THE BOARD'S DETERMINATION IN ANY
SUCH PROCEEDING SHALL BE FINAL. NO PERSON SHALL KNOWINGLY PERMIT ANY
OTHER PERSON TO SERVE IN ANY CAPACITY REFERRED TO IN PARAGRAPH (1) OR
(2) IN VIOLATION OF THIS SUBSECTION. NOTWITHSTANDING THE PRECEDING
PROVISIONS OF THIS SUBSECTION, NO CORPORATION OR PARTNERSHIP WILL BE
PRECLUDED FROM ACTING AS AN ADMINISTRATOR, FIDUCIARY, OFFICER, TRUSTEE,
CUSTODIAN, COUNSEL, AGENT, OR EMPLOYEE, OF ANY EMPLOYEE BENEFIT PLAN OR
AS A CONSULTANT TO ANY EMPLOYEE BENEFIT PLAN WITHOUT A NOTICE, HEARING,
AND DETERMINATION BY SUCH BOARD OF PAROLE THAT SUCH SERVICE WOULD BE
INCONSISTENT WITH THE INTENTION OF THIS SECTION.
(B) ANY PERSON WHO INTENTIONALLY VIOLATES THIS SECTION SHALL BE
FINED NOT MORE THAN $10,000 OR IMPRISONED FOR NOT MORE THAN ONE
YEAR, OR BOTH.
(C) FOR THE PURPOSES OF THIS SECTION:
(1) A PERSON SHALL BE DEEMED TO HAVE BEEN "CONVICTED" AND UNDER
THE DISABILITY OF "CONVICTION" FROM THE DATE OF THE JUDGMENT OF
THE TRIAL COURT OR THE DATE OF THE FINAL SUSTAINING OF SUCH
JUDGMENT ON APPEAL, WHICHEVER IS THE LATER EVENT.
(2) THE TERM "CONSULTANT" MEANS ANY PERSON WHO, FOR
COMPENSATION, ADVISES OR REPRESENTS AN EMPLOYEE BENEFIT PLAN OR
WHO PROVIDES OTHER ASSISTANCE TO SUCH PLAN, CONCERNING THE
ESTABLISHMENT OR OPERATION OF SUCH PLAN.
(3) A PERIOD OF PAROLE SHALL NOT BE CONSIDERED AS PART OF A
PERIOD OF IMPRISONMENT.
SEC. 412. (A) EVERY FIDUCIARY OF AN EMPLOYEE BENEFIT PLAN AND EVERY
PERSON WHO HANDLES FUNDS OR OTHER PROPERTY OF SUCH A PLAN (HEREAFTER IN
THIS SECTION REFERRED TO AS "PLAN OFFICIAL") SHALL BE BONDED AS PROVIDED
IN THIS SECTION; EXCEPT THAT--,
(1) WHERE SUCH PLAN IS ONE UNDER WHICH THE ONLY ASSETS FROM WHICH
BENEFITS ARE PAID ARE THE GENERAL ASSETS OF A UNION OR OF AN EMPLOYER,
THE ADMINISTRATOR, OFFICERS, AND EMPLOYEES OF SUCH PLAN SHALL BE EXEMPT
FROM THE BONDING REQUIREMENTS OF THIS SECTION, AND
(2) NO BOND SHALL BE REQUIRED OF A FIDUCIARY (OR OF ANY DIRECTOR,
OFFICER, OR EMPLOYEE OF SUCH FIDUCIARY) IF SUCH FIDUCIARY--,
(A) IS A CORPORATION ORGANIZED AND DOING BUSINESS UNDER THE
LAWS OF THE UNITED STATES OR OF ANY STATE;
(B) IS AUTHORIZED UNDER SUCH LAWS TO EXERCISE TRUST POWERS OR
TO CONDUCT AN INSURANCE BUSINESS;
(C) IS SUBJECT TO SUPERVISION OR EXAMINATION BY FEDERAL OR
STATE AUTHORITY; AND
(D) HAS AT ALL TIMES A COMBINED CAPITAL AND SURPLUS IN EXCESS
OF SUCH A MINIMUM AMOUNT AS MAY BE ESTABLISHED BY REGULATIONS
ISSUED BY THE SECRETARY, WHICH AMOUNT SHALL BE AT LEAST
$1,000,000. PARAGRAPH (2) SHALL APPLY TO A BANK OR OTHER
FINANCIAL INSTITUTION WHICH IS AUTHORIZED TO EXERCISE TRUST POWERS
AND THE DEPOSITS OF WHICH ARE NOT INSURED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION, ONLY IF SUCH BANK OR INSTITUTION MEETS
BONDING OR SIMILAR REQUIREMENTS UNDER STATE LAW WHICH THE
SECRETARY DETERMINES ARE AT LEAST EQUIVALENT TO THOSE IMPOSED ON
BANKS BY FEDERAL LAW.
THE AMOUNT OF SUCH BOND SHALL BE FIXED AT THE BEGINNING OF EACH FISCAL
YEAR OF THE PLAN. SUCH AMOUNT SHALL BE NOT LESS THAN 10 PER CENTUM OF
THE AMOUNT OF FUNDS HANDLED. IN NO CASE SHALL SUCH BOND BE LESS THAN
$1,000 NOR MORE THAN $5,000,000, EXCEPT THAT THE SECRETARY, AFTER DUE
NOTICE AND OPPORTUNITY FOR HEARING TO ALL INTERESTED PARTIES, AND AFTER
CONSIDERATION OF THE RECORD, MAY PRESCRIBE AN AMOUNT IN EXCESS OF
$500,000, SUBJECT TO THE 10 PER CENTUMLIMITATION OF THE PRECEDING
SENTENCE. FOR PURPOSES OF FIXING THE AMOUNT OF SUCH BOND, THE AMOUNT OF
FUNDS HANDLED SHALL BE DETERMINED BY THE FUNDS HANDLED BY THE PERSON,
GROUP, OR CLASS TO BE COVERED BY SUCH BOND AND BY THEIR PREDECESSOR OR
PREDECESSORS, IF ANY, DURING THE PRECEDING REPORTING YEAR, OR IF THE
PLAN HAS NO PRECEDING REPORTING YEAR, THE AMOUNT OF FUNDS TO BE HANDLED
DURING THE CURRENT REPORTING YEAR BY SUCH PERSON, GROUP, OR CLASS,
ESTIMATED AS PROVIDED IN REGULATIONS OF THE SECRETARY. SUCH BOND SHALL
PROVIDE PROTECTION TO THE PLAN AGAINST LOSS BY REASON OF ACTS OF FRAUD
OR DISHONESTY ON THE PART OF THE PLAN OFFICIAL, DIRECTLY OR THROUGH
CONNIVANCE WITH OTHERS. ANY BOND SHALL HAVE AS SURETY THEREON A
CORPORATE SURETY COMPANY WHICH IS AN ACCEPTABLE SURETY ON FEDERAL BONDS
UNDER AUTHORITY GRANTED BY THE SECRETARY OF THE TREASURY PURSUANT TO
SECTION 6 THROUGH 13 OF TITLE 6, UNITED STATES CODE. ANY BOND SHALL BE
IN A FORM OR OF A TYPE APPROVED BY THE SECRETARY, INCLUDING INDIVIDUAL
BONDS OR SCHEDULE OR BLANKET FORMS OF BONDS WHICH COVER A GROUP OR
CLASS.
(B) IT SHALL BE UNLAWFUL FOR ANY PLAN OFFICIAL TO WHOM SUBSECTION (A)
APPLIES, TO RECEIVE, HANDLE, DISBURSE, OR OTHERWISE EXERCISE CUSTODY OR
CONTROL OF ANY OF THE FUNDS OR OTHER PROPERTY OF ANY EMPLOYEES BENEFIT
PLAN, WITHOUT BEING BONDED AS REQUIRED BY SUBSECTION (A) AND IT SHALL BE
UNLAWFUL FOR ANY PLAN OFFICIAL OF SUCH PLAN, OR ANY OTHER PERSON HAVING
AUTHORITY TO DIRECT THE PERFORMANCE OF SUCH FUNCTIONS, TO PERMIT SUCH
FUNCTIONS, OR ANY OF THEM, TO BE PERFORMED BY ANY PLAN OFFICIAL, WITH
RESPECT TO WHOM THE REQUIREMENTS OF SUBSECTION (A) HAVE NOT BEEN MET.
(C) IT SHALL BE UNLAWFUL FOR ANY PERSON TO PROCURE ANY BOND REQUIRED
BY SUBSECTION (A) FROM ANY SURETY OR OTHER COMPANY OR THROUGH ANY AGENT
OR BROKER IN WHOSE BUSINESS OPERATIONS SUCH PLAN OR ANY PARTY IN
INTEREST IN SUCH PLAN HAS ANY CONTROL OR SIGNIFICANT FINANCIAL INTEREST,
DIRECT OR INDIRECT.
(D) NOTHING IN ANY OTHER PROVISION OF LAW SHALL REQUIRE ANY PERSON,
REQUIRED TO BE BONDED AS PROVIDED IN SUBSECTION (A) BECAUSE HE HANDLES
FUNDS OR OTHER PROPERTY OF AN EMPLOYEE BENEFIT PLAN, TO BE BONDED
INSOFAR AS THE HANDLING BY SUCH PERSON OF THE FUNDS OR OTHER PROPERTY OF
SUCH PLAN IS CONCERNED.
(E) THE SECRETARY SHALL PRESCRIBE SUCH REGULATIONS AS MAY BE
NECESSARY TO CARRY OUT THE PROVISIONS OF THIS SECTION INCLUDING
EXEMPTING A PLAN FROM THE REQUIREMENTS OF THIS SECTION WHERE HE FINDS
THAT (1) OTHER BONDING ARRANGEMENTS OR (2) THE OVERALL FINANCIAL
CONDITION OF THE PLAN WOULD BE ADEQUATE TO PROTECT THE INTERESTS OF THE
BENEFICIARIES AND PARTICIPANTS. WHEN, IN THE OPINION OF THE SECRETARY,
THE ADMINISTRATOR OF A PLAN OFFERS ADEQUATE EVIDENCE OF THE FINANCIAL
RESPONSIBILITY OF THE PLAN, OR THAT OTHER BONDING ARRANGEMENTS WOULD
PROVIDE ADEQUATE PROTECTION OF THE BENEFICIARIES AND PARTICIPANTS, HE
MAY EXEMPT SUCH PLAN FROM THE REQUIREMENTS OF THIS SECTION.
SEC. 413. (A) NO ACTION MAY BE COMMENCED UNDER THIS TITLE WITH
RESPECT TO A FIDUCIARY'S BREACH OF ANY RESPONSIBLITY, DUTY, OR
OBLIGATION UNDER THIS PART, OR WITH RESPECT TO A VIOLATION OF THIS PART,
AFTER THE EARLIER OF--,
(1) SIX YEARS AFTER (A) THE DATE OF THE LAST ACTION WHICH
CONSTITUTED A PART OF THE BREACH OR VIOLATION, OR (B) IN THE CASE
OF AN OMISSION, THE LATEST DATE ON WHICH THE FIDUCIARY COULD HAVE
CURED THE BREACH OR VIOLATION, OR
(2) THREE YEARS AFTER THE EARLIEST DATE (A) ON WHICH THE
PLAINTIFF HAD ACTUAL KNOWLEDGE OF THE BREACH OR VIOLATION, OR (B)
ON WHICH A REPORT FROM WHICH HE COULD REASONABLY BE EXPECTED TO
HAVE OBTAINED KNOWLEDGE OF SUCH BREACH OR VIOLATION WAS FILED WITH
THE SECRETARY UNDER THIS TITLE;
EXCEPT THAT IN THE CASE OF FRAUD OR CONCEALMENT, SUCH ACTION MAY BE
COMMENCED NOT LATER THAN SIX YEARS AFTER THE DATE OF DISCOVERY OF SUCH
BREACH OR VIOLATIONS.
SEC. 414. (A) EXCEPT AS PROVIDED IN SUBSECTIONS (B), (C), AND (D),
THIS PART SHALL TAKE EFFECT ON JANUARY 1, 1975.
(B) (1) THE PROVISIONS OF THIS PART AUTHORIZING THE SECRETARY TO
PROMULGATE REGULATIONS SHALL TAKE EFFECT ON THE DATE OF ENACTMENT OF
THIS ACT.
(2) UPON APPLICATION OF A PLAN, THE SECRETARY MAY POSTPONE UNTIL NOT
LATER THAN JANUARY 1, 1976, THE APPLICABLILTY OF ANY PROVISION OF
SECTIONS 402, 403 (OTHER THAN 403(C)), 405 (OTHER THAN 405(A) AND (D)),
AND 410(A), AS IT APPLIES TO ANY PLAN IN EXISTENCE ON THE DATE OF
ENACTMENT OF THIS ACT IF HE DETERMINES SUCH POSTPONEMENT IS (A)
NECESSARY TO AMEND THE INSTRUMENT ESTABLISHING THE PLAN UNDER WHICH THE
PLAN IS MAINTAINED AND (B) NOT ADVERSE TO THE INTEREST OF PARTICIPANTS
AND BENEFICIARIES.
(3) THIS PART SHALL TAKE EFFECT ON THE DATE OF INACTMENT OF THIS ACT
WITH RESPECT TO A PLAN WHICH TERMINATES AFTER JUNE 30, 1974, AND BEFORE
JANUARY 1, 1975, AND TO WHICH AT THE TIME OF TERMINATION SECTION 4021
APPLIES. //POST, P. 1014.//
(C) SECTION 406 AND 407(A) (RELATING TO PROHIBITED TRANSACTIONS)
SHALL NOT APPLY--,
(1) UNTIL JUNE 30, 1984, TO A LOAN OF MONEY OR OTHER EXTENSION
OF CREDIT BETWEEN A PLAN AND A PARTY IN INTEREST UNDER A BINDING
CONTRACT IN EFFECT ON JULY 1, 1974 (OR PURSUANT TO RENEWALS OF
SUCH A CONTRACT), IF SUCH LOAN OR OTHER EXTENSION OF CREDIT
REMAINS AT LEAST AS FAVORABLE TO THE PLAN AS AN ARM'S-LENGTH
TRANSACTION WITH AN UNRELATED PARTY WOULD BE AND IF THE EXECUTION
OF THE CONTRACT WAS NOT, AT THE TIME OF SUCH EXCUTION, A
PROHIBITED TRANSACTION (WITHIN THE MEANING OF SECTION 503(B) OF
THE INTERNAL REVENUE CODE OF 1954) OR THE CORRESPONDING PROVISIONS
OF PRIOR LAW;
(3) UNTIL JUNE 30, 1984, TO THE SALE, EXCHANGE, OR OTHER
DISPOSITION OF PROPERTY DESCRIBED IN PARAGRAPH (2) BETWEEN A PLAN
AND A PARTY IN INTEREST IF--,
(A) IN THE CASE OF A SALE, EXCHANGE, OR OTHER DISPOSITION OF
THE PROPERTY BY THE PLAN TO THE PARTY IN INTEREST, THE PLAN
RECEIVES AN AMOUNT WHICH IS NOT LESS THAN THE FAIR MARKET VALUE OF
THE PROPERTY AT THE TIME OF SUCH DISPOSITION; AND
(B) IN THE CASE OF THE ACQUISITION OF THE PROPERTY BY THE PLAN,
THE PLAN PAYS AN AMOUNT WHICH IS NOT IS EXCESS OF THE FAIR MARKET
VALUE OF THE PROPERTY AT THE TIME OF SUCH ACQUISITION;
(4) UNTIL JUNE 30, 1977, TO THE PROVISION OF SERVICES, TO WHICH
PARAGRAPHS (1), (2), AND (3) DO NOT APPLY BETWEEN A PLAN AND A
PARTY IN INTEREST--,
(A) UNDER A BINDING CONTRACT IN EFFECT ON JULY 1, 1974 (OR
PURSUANT TO RENEWALS OF SUCH CONTRACT), OR
(B) IF THE PARTY IN INTEREST ORDINARILY AND CUSTOMARILY
FURNISHED SUCH SERVICES ON JUNE 30, 1974, IF SUCH PROVISION OF
SERVICES REMAINS AT LEAST AS FAVORABLE TO THE PLAN AS AN
ARM'S-LENGTH TRANSACTION WITH AN UNRELATED PARTY WOULD BE AND IF
SUCH PROVISION OF SERVICES WAS NOT, AT THE TIME OF SUCH PROVISION,
A PROHIBITED TRANSCATION (WITHIN THE MEANING OF SECTION 503(B) OF
THE INTERNAL REVENUE CODE OF 1954) OR THE CORRESPONDING PROVISIONS
OF PRIOR LAW; OR
(5) THE SALE, EXCHANGE, OR OTHER DISPOSITION OF PROPERTY WHICH
IS OWNED BY A PLAN ON JUNE 30, 1974, AND ALL TIMES THEREAFTER, TO
A PARTY IN INTEREST, IF SUCH PLAN IS REQUIRED TO DISPOSE OF SUCH
PROPERTY IN ORDER TO COMPLY EITH THE PROVISIONS OF SECTION 407(A)
(RELATING TO THE PROHIBITION AGAINST HOLDING EXCESS EMPLOYER
SECURITIES AND EMPLOYER REAL PROPERTY), AND IF THE PLAN RECEIVES
NOT LESS THAN ADEQUATE CONSIDERATION.
(D) ANY ELECTION, OR FAILURE TO ELECT, BY A DISQUALIFIED PERSON UNDER
SECTION 2003(C) (1) (B) OF THIS ACT //POST, P. 971.// SHALL BE TREATED
FOR PURPOSES OF THIS PART (BUT NOT FOR PURPOSES OF SECTION 514) AS AN
ACT OR OMISSION OCCURRING BEFORE THE EFFECTIVE DATE OF THIS PART.
SEC. 501. ANY PERSON WHO WILLFULLY VIOLATES ANY PROVISION OF PART 1
OF THIS SUBTITLE, OR ANY REGULATION OR ORDER ISSUED UNDER ANY SUCH
//ANTE, P. 840.// PROVISION, SHALL UPON CONVICTION BE FINED NOT MORE
THAN $5,000 OR IMPRISONED NOT MORE THAN ONE YEAR, OR BOTH; EXCEPT THAT
IN THE CASE OF SUCH VIOLATION BY A PERSON NOT AN INDIVIDUAL, THE FINE
IMPOSED UPON SUCH PERSON SHALL BE A FINE NOT EXCEEDING $100,000.
SEC. 502. (A) A CIVIL ACTION MAY BE BROUGHT--,
(1) BY A PARTICIPANT OR BENEFICIARY--,
(A) FOR THE RELIEF PROVIDED FOR IN SUBSECTION (C) OF THIS
SECTION, OR
(B) TO RECOVER BENEFITS DUE TO HIM UNDER THE TERMS OF HIS PLAN,
TO ENFORCE HIS RIGHTS UNDER THE TERMS OF THE PLAN, OR TO CLARIFY
HIS RIGHTS TO FUTURE BENEFITS UNDER THE TERMS OF THE PLAN;
(2) BY THE SECRETARY, OR BY A PARTICIPANT, BENEFICIARY OR
FIDUCIARY FOR APPROPRIATE RELIEF UNDER SECTION 409;
(3) BY A PARTICIPANT, BENEFICUARY, OR FIDUCIARY (A) TO ENJOIN
ANY ACT OR PRACTICE WHICH VIOLATES ANY PROVISION OF THIS TITLE OR
THE TERMS OF THE PLAN, OR (B) TO OBTAIN OTHER APPROPRIATE
EQUITABLE RELIEF (I) TO REDRESS SUCH VIOLATIONS OR (II) TO ENFORCE
ANY PROVISIONS OF THIS TITLE OR THE TERMS OF THE PLAN;
(4) BY THE SECRETARY, OR BY A PARTICIPANT, OR BENEFICIARY FOR
APPROPRIATE RELIEF IN THE CASE OF A VIOLATION OF 105(C); //ANTE,
P. 849.//
(5) EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (B), BY THE
SECRETARY (A) TO ENJOIN ANY ACT OR PRACTICE WHICH VIOLATES ANY
PROVISION OF THIS TITLE, OR (B) TO OBTAIN OTHER APPROPRIATE
EQUITABLE RELIEF (I) TO REDRESS SUCH VIOLATION OR (II) TO ENFORCE
ANY PROVISION OF THIS TITLE; OR
(6) BY THE SECRETARY TO COLLECT ANY CIVIL PENALTY UNDER
SUBSECTION (I).
(B) IN THE CASE OF A PLAN WHICH IS QUALIFIED UNDER SECTION 401 (A),
403(A), OR 405(A) OF THE INTERNAL REVENUE CODE OF 1954 //26 USC 401,
403, 405.// (OR WITH RESPECT TO WHICH AN APPLICATION TO SO QUALIFY HAS
BEEN FILED AND HAS NOT BEEN FINALLY DETERMINED) THE SECRETARY MAY
EXERCISE HIS AUTHORITY UNDER SUBSECTION (A) (5) WITH RESPECT TO A
VIOLATION OF, OR THE ENFORCEMENT OF, PARTS 2 AND 3 OF THIS SUBTITLE
//ANTE, PP. 852, 868.// (RELATING TO PARTICIPATION, VESTING, AND
FUNDING), ONLY IF--,
(1) REQUESTED BY THE SECRETARY OF THE TREASURY, OR
(2) ONE OR MORE PARTICIPANTS, BENEFICIARIES, OR FIDUCIARIES, OF
SUCH PLAN REQUEST IN WRITING (IN SUCH MANNER AS THE SECRETARY
SHALL PRESCRIBE BY REGULATION) THAT HE EXERCISE SUCH AUTHORITY ON
THEIR BEHALF. IN THE CASE OF SUCHA REQUEST UNDER THIS PARAGRAPH
HE MAY EXERCISE SUCH AUTHORITY ONLY IF HE DETERMINES THAT SUCH
VIOLATION AFFECTS, OR SUCH ENFORCEMENT IS NECESSARY TO PROTECT,
CLAINS OF PARTICIPANTS OR BENEFICIARIES TO BENEFITS UNDER THE
PLAN.
(C) ANY ADMINISTRATOR WHO FAILS OR REFUSES TO COMPLY WITH A REQUEST
FOR ANY INFORMATION WHICH SUCH ADMINISTRATOR IS REQUIRED BY THIS TITLE
TO FURNISH TO A PARTICIPANT OR BENEFICIARY (UNLESS SUCH FAILURE OR
REFUSAL RESULTS FROM MATTERS REASONABLY BEYOND THE CONTROL OF THE
ADMINISTRATOR) BY MAILING THE MATERIAL REQUESTED TO THE LAST KNOWN
ADDRESS OF THE REQUESTING PARTICIPANT OR BENEFICIARY WITHIN 30 DAYS
AFTER SUCH REQUEST MAY IN THE COURT'S DISCRETION BE PERSONALLY LIABLE TO
SUCH PARTICIPANT OR BENEFICIARY IN THE AMOUNT OF UP TO $100 A DAY FROM
THE DATE OF SUCH FAILURE OR REFUSAL, AND THE COURT MAY IN ITS DISCRETION
ORDER SUCH OTHER RELIEF AS IT DEEMS PROPER.
(D) (1) AN EMPLOYEE BENEFIT PLAN MAY SUE OR BE SUED UNDER THIS TITLE
AS AN ENTITY. SERVICE OF SUMMONS, SUBPENA, OR OTHER LEGAL PROCESS OF A
COURT UPON A TRUSTEE OR AN ADMINISTRATOR OF AN EMPLOYEE BENEFIT PLAN IN
HIS CAPACITY AS SUCH SHALL CONSTITUTE SERVICE UPON THE EMPLOYEE BENEFIT
PLAN. IN A CASE WHERE A PLAN HAS NOT DESIGNATED IN THE SUMMARY PLAN
DESCRIPTION OF THE PLAN AN INDIVIDUAL AS AGENT FOR THE SERVICE OF LEGAL
PROCESS, SERVICE UPON THE SECRETARY SHALL CONSTITUTE SUCH SERVICE. THE
SECRETARY, NOT LATER THAN 15 DAYS AFTER RECEIPT OF SERVICE UNDER THE
PRECEDING SENTENCE, SHALL NOTIFY THE ADMINISTRATOR OR ANY TRUSTEE OF THE
PLAN OF RECEIPT OF SUCH SERVICE.
(2) ANY MONEY JUDGMENT UNDER THIS TITLE AGAINST AN EMPLOYEE BENEFIT
PLAN SHALL BE ENFORCEABLE ONLY AGAINST THE PLAN AS AN ENTITY AND SHALL
NOT BE ENFORCEABLE AGAINST ANY OTHER PERSONS UNLESS LIABILITY AGAINST
SUCH PERSON IS ESTABLISHED IN HIS INDIVIDUAL CAPACITY UNDER THIS TITLE.
(E) (1) EXCEPT FOR ACTIONS UNDER SUBSECTION (A) (1) (B) OF THIS
SECTION, THE DISTRICT COURTS OF THE UNITED STATES SHALL HAVE EXCLUSIVE
JURISDICTION OF CIVIL ACTIONS UNDER THIS TITLE BROUGHT BY THE SECRETARY
OR BY A PARTICIPANT, BENEFICIARY, OR FIDUCIARY. STATE COURTS OF
COMPETENT JURISDICTION AND DISTRICT COURTS OF THE UNITED STATES SHALL
HAVE CONCURRENT JURISDICTION OF ACTIONS UNDER SUBSECTION (A) (1) (B) OF
THIS SECTION.
(2) WHERE AN ACTION UNDER THIS TITLE IS BROUGHT IN A DISTRICT COURT
OF THE UNITED STATES, IT MAY BE BROUGHT IN THE DISTRICT WHERE THE PLAN
IS ADMINISTERED, WHERE THE BREACH TOOK PLACE, OR WHERE A DEFENDANT
RESIDES OR MAY BE FOUND, AND PROCESS MAY BE SERVED IN ANY OTHER DISTRICT
WHERE A DEFENDANT RESIDES OR MAY BE FOUND.
(F) THE DISTRICT COURTS OF THE UNITEDSTATES SHALL HAVE JURISDICTION,
WITHOUT RESPECT TO THE AMOUNT IN CONTROVERSY OR THE CITIZENSHIP OF THE
PARTIES, TO GRANT THE RELIEF PROVIDED FOR IN SUBSECTION (A) OF THIS
SECTION IN ANY ACTION.
(G) IN ANY ACTION UNDER THIS TITLE BY A PARTICIPANT, BENEFICIARY, OR
FIDUCIARY, THE COURT IN ITS DISCRETION MAY ALLOW A REASONABLE ATTORNEY'S
FEE AND COSTS OF ACTION TO EITHER PARTY.
(H) A COPY OF THE COMPLAINT IN ANY ACTION UNDER THIS TITLE BY A
PARTICIPANT, BENEFICIARY, OR FIDUCIARY (OTHER THAN AN ACTION BROUGHT BY
ONE OR MORE PARTICIPANTS OR BENEFICIARIES UNDER SUBSECTION (A) (1) (B)
WHICH IS SOLELY FOR THEPURPOSE OF RECOVERING BENEFITS DUE SUCH
PARTICIPANTS UNDER THE TERMS OF THE PLAN) SHALL BE SERVED UPON THE
SECRETARY AND THE SECRETARY OF THE TREASURY BY CERTIFIED MAIL. EITHER
SECRETARY SHALL HABE THE RIGHT IN HIS DISCRETION TO INTERVENE IN ANY
ACTION, EXCEPT THAT THE SECRETARY OF THE TREASURY MAY NOT INTERVENE IN
ANY ACTION UNDER PART 4 OF THIS SUBTITLE. //ANTE, P. 874.// IF THE
SECRETARY BRINGS AN ACTION UNDER SUBSECTION (A) ON BEHALF OF A
PARTICIPANT OR BENEFICIARY, HE SHALL NOTIFY THE SECRETARY OF THE
TREASURY.
(I) IN THE CASE OF A TRANSACTION PROHIBITED BY SECTION 406 BY A PARTY
IN INTEREST WITH RESPECT TO A PLAN TO WHICH THIS PART APPLIES, THE
SECRETARY MAY ASSESS A CIVIL PENALTY AGAINST SUCH PARTY IN INTEREST.
THE AMOUNT OF SUCH PENALTY MAY NOT EXCEED 5 PERCENT OF THE AMOUNT
INVOLVED (AS DEFINED IN SECTION 4975(F) (4) OF THE INTERNAL REVENUE CODE
OF 1954); //POST, P. 971.// EXCEPT THAT IF THE TRANSACTION IS NOT
CORRECTED (IN SUCH MANNER AS THE SECRETARY SHALL PRESCRIBE BY
REGULATION, WHICH REGULATIONS SHALL BE CONSISTENT WITH SECTION 4975(F)
(5) OF SUCH CODE) WITHIN 90 DAYS AFTER NOTICE FROM THE SECRETARY (OR
SUCH LONGER PERIOD AS THE SECRETARY MAY PERMIT), SUCH PENALTY MAY BE IN
AN AMOUNT NOT MORE THAN 100 PERCENT OF THE AMOUNT INVOLVED. THIS
SUBSECTION SHALL NOT APPLY TO A TRANSACTION WITH RESPECT TO A PLAN
DESCRIBED IN SECTION 4975 (E) (1) OF SUCH CODE. //POST, P. 974.//
(J) IN ALL CIVIL ACTION UNDER THIS TITLE, ATTORNEYS APPOINTED BY THE
SECRETARY MAY REPRESENT THE SECRETARY (EXCEPT AS PROVIDED IN SECTION
518(A) OF TITLE 28, UNITED STATES CODE), BUT ALL SUCH LITIGATION SHALL
BE SUBJECT TO THE DIRECTION AND CONTROL OF THE ATTORNEY GENERAL.
(K) SUITS BY AN ADMINISTRATOR, FIDUCIARY, PARTICIPANT, OR BENEFICIARY
OF AN EMPLOYEE BENEFIT PLAN TO REVIEW A FINAL ORDER OF THE SECRETARY,
RESTRAIN THE SECRETARY FROM TAKING ANY ACTION CONTRARY TO THE PROVISIONS
OF THIS ACT, OR TO COMPEL HIM TO TAKE ACTION REQUIRED UNDER THIS TITLE,
MAY BE BROUGHT IN THE DISTRICT COURT OF THE UNITED STATES FOR THE
DISTRICT WHERE THE PLAN HAS ITS PRINCIPAL OFFICE, OR IN THE UNITED
STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA.
SEC. 503. IN ACCORDANCE WITH REGULATIONS OF THE SECRETARY, EVERY
EMPLOYEE BENEFIT PLAN SHALL--,
(1) PROVIDE ADEQUATE NOTICE IN WRITING TO ANY PARTICIPANT OR
BENEFICIARY WHOSE CLAIM FOR BENEFITS UNDER THE PLAN HAS BEEN
DENIED, SETTING FORTH THE SPECIFIC REASONS FOR SUCH DENIAL,
WRITTEN IN A MANNER CALCULATED TO BE UNDERSTOOD BY THE
PARTICIPANT, AND
(2) AFFORD A REASONABLE OPPORTUNITY TO ANY PARTICIPANT WHOSE
CLAIM FOR BENEFITS HAS BEEN DENIED FOR A FULL AND FAIR REVIEW BY
THE APPROPRIATE NAMED FIDUCIARY OF THE DECISION DENYING THE CLAIM.
SEC. 504. (A) THE SECRETARY SHALL HAVE THE POWER, IN ORDER TO
DETERMINE WHETHER ANY PERSON HAS VIOLATED OR IS ABOUT TO VIOLATE ANY
PROVISION OF THIS TITLE OR ANY REGULATION OR ORDER THEREUNDER--,
(1) TO MAKE AN INVESTIGATION, AND IN CONNECTION THEREWITH TO
REQUIRE THE SUBMISSION OF REPORTS, BOOKS, AND RECORDS, AND THE
FILING OF DATA IN SUPPORT OF ANY INFORMATION REQUIRED TO BE FILED
WITH THE SECRETARY UNDER THIS TITLE, AND
(2) TO ENTER SUCH PLACES, INSPECT SUCH BOOKS AND RECORDS AND
QUESTION SUCH PERSONS AS HE MAY DEEM NECESSARY TO ENABLE HIM TO
DETERMINE THE FACTS RELATIVE TO SUCH INVESTIGATION, IF HE HAS
REASONABLE CAUSE TO BELIEVE THERE MAY EXIST A VIOLATION OF THIS
TITLE OR ANY RULE OR REGULATION ISSUED THEREUNDER OR IF THE ENTRY
IS PURSUANT TO AN AGREEMENT WITH THE PLAN.
THE SECRETARY MAY MAKE AVAILABLE TO ANY PERSON ACTUALLY AFFECTED BY ANY
MATTER WHICH IS THE SUBJECT OF AN INVESTIGATION UNDER THIS SECTION, AND
TO ANY DEPARTMENT OR AGENCY OF THE UNITED STATES, INFORMATION CONCERNING
ANY MATTER WHICH MAY BE THE SUBJECT OF SUCH INVESTIGATION; EXCEPT THAT
ANY INFORMATION OBTAINED BY THE SECRETARY PURSUANT TO SECTION 6103(G) OF
THE INTERNAL REVENUE CODE OF 1954 //POST, P. 941.// SHALL BE MADE
AVAILABLE ONLY IN ACCORDANCE WITH REGULATIONS PRESCRIBED BY THE
SECRETARY OF THE TREASURY.
(B) THE SECRETARY MAY NOT UNDER THE AUTHORITY OF THIS SECTION REQUIRE
ANY PLAN TO SUBMIT TO THE SECRETARY ANY BOOKS OR RECORDS OR THE PLAN
MORE THAN ONCE IN ANY 12 MONTH PERIOD, UNLESS THE SECRETARY HAS
REASONABLE CAUSE TO BELIEVE THERE MAY EXIST A VIOLATION OF THIS TITLE OR
ANY REGULATION OR ORDER THEREUNDER.
(C) FOR THE PURPOSES OF ANY INVESTIGATION PROVIDED FOR IN THIS TITLE,
THE PROVISIONS OF SECTIONS 9 AND 10 (RELATING TO THE ATTENDANCE OF
WITNESSES AND THE PRODUCTION OF BOOKS, RECORDS, AND DOCUMENTS) OF THE
FEDERAL TRADE COMMISSION ACT (15 U.S.C. 49, 50) ARE HEREBY MADE
APPLICABLE (WITHOUT REGARD TO ANY LIMITATION IN SUCH SECTIONS RESPECTING
PERSONS, PARTNERSHIPS, BANKS, OR COMMON CARRIERS) TO THE JURISDICTION,
POWERS, AND DUTIES OF THE SECRETARY OR ANY OFFICERS DESIGNATED BY HIM.
TO THE EXTENT HE CONSIDERS APPROPRIATE, THE SECRETARY MAY DELEGATE HIS
INVESTIGATIVE FUNCTIONS UNDER THIS SECTION WITH RESPECT TO APPROPRIATE
FEDERAL BANKING AGENCY (AS DEFINED IN SECTION 3(Q) OF THE FEDERAL
DEPOSIT INSURANCE ACT (12 U.S.C. 1813(Q)).
SEC. 505. SUBJECT TO TITLE III AND SECTION 109, THE SECRETARY MAY
PRESCRIBE SUCH REGULATIONS AS HE FINDS NECESSARY OR APPROPRIATE TO CARRY
OUT THE PROVISIONS OF THIS TITLE. //POST, P. 995; ANTE, P. 850.//
AMONG OTHER THINGS, SUCH REGULATIONS MAY DEFINE ACCOUNTING, TECHNICAL
AND TRADE TERMS USED IN SUCH PROVISIONS; MAY PRESCRIBE FORMS; AND MAY
PROVIDE FOR THE KEEPING OF BOOKS AND RECORDS, AND FOR THE INSPECTION OF
SUCH BOOKS AND RECORDS (SUBJECT TO SECTION 504(A) AND (B)).
SEC. 506. IN ORDER TO AVOID UNNECESSARY EXPENSE AND DUPLICATION OF
FUNCTIONS AMONG GOVERNMENT AGENCIES, THE SECRETARY MAY MAKE SUCH
ARRANGEMENTS OR AGREEMENTS FOR COOPERATION OR MUTUAL ASSISTANCE IN THE
PERFORMANCE OF HIS FUNCTIONS UNDER THIS TITLE AND THE FUNCTIONS OF ANY
SUCH AGENCY AS HE MAY FIND TO BE PRACTICABLE AND CONSISTENT WITH LAW.
THE SECRETARY MAY UTILIZE, ON A REIMBURSABLE OR OTHER BASIS, THE
FACILITIES OR SERVICES OF ANY DEPARTMENT, AGENCY, OR ESTABLISHMENT OF
THE UNITED STATES OR OF ANY STATE OR POLITICAL SUBDIVISION OR A STATE,
INCLUDING THE SERVICES OF ANY OF ITS EMPLOYEES, WITH THE LAWFUL CONSENT
OF SUCH DEPARTMENT, AGENCY, OR ESTABLISHMENT; AND EACH DEPARTMENT,
AGENCY, OR ESTABLISHMENT OF THE UNITED STATES IS AUTHORIZED AND DIRECTED
TO COOPERATE WITH THE SECRETARY AND, TO THE EXTENT PERMITTED BY LAW, TO
PROVIDE SUCH INFORMATION AND FACILITIES AS HE MAY REQUEST FOR HIS
ASSISTANCE IN THE PERFORMANCE OFHIS FUNCTIONS UNDER THIS TITLE. THE
ATTORNEY GENERAL OR HIS REPRESENTATIVE SHALL RECEIVE FROM THE SECRETARY
FOR APPROPRIATE ACTION SUCH EVIDENCE DEVELOPED IN THE PERFORMANCE OF HIS
FUNCTIONS UNDER THIS TITLE AS MAY BE FOUND TO WARRANT CONSIDERATION FOR
CRIMINAL PROSECUTION UNDER THE PROVISIONS OF THIS TITLE OR OTHER FEDERAL
LAW.
SEC. 507. (A) SUBCHAPTER II OF CHAPTER 5, AND CHAPTER 7, OF TITLE 5,
UNITED STATES CODE //5 USC 551, 701.// (RELATING TO ADMINISTRATIVE
PROCEDURE), SHALL BE APPLICABLE TO THIS TITLE.
(B) SECTION 5108 OF TITLE 5, UNITED STATES CODE, IS AMENDED BY ADDING
AT THE END THEREOF THE FOLLOWING NEW SUBSECTION:
"(F) IN ADDITION TO THE NUMBER OF POSITIONS AUTHORIZED BY SUBSECTION
(A), THE SECRETARY OF LABOR IS AUTHORIZED, WITHOUT REGARD TO ANY OTHER
PROVISION OF THIS SECTION, TO PLACE 1 POSITION IN THE DEPARTMENT OF
LABOR IN GRADE GS-18, AND A TOTAL OF 20 POSITIONS IN THE DEPARTMENT OF
LABOR IN GRADES GS-16 AND 17."
(C) NO EMPLOYEE OF THE DEPARTMENT OF LABOR OR THE DEPARTMENT OF THE
TREASURY SHALL ADMINISTER OR ENFORCE THIS TITLE OR THE INTERNAL REVENUE
CODE OF 1954 //26 USC 1 ET SEQ.// WITH RESPECT TO ANY EMPLOYEE BENEFIT
PLAN UNDER WHICH HE IS A PARTICIPANT OR BENEFICIARY, ANY EMPLOYEE
ORGANIZATION OF WHICH HE IS A MEMBER, OR ANY EMPLOYER ORGANIZATION IN
WHICH HE HAS AN INTEREST. THIS SUBSECTION DOES NOT APPLY TO AN EMPLOYEE
BENEFIT PLAN WHICH COVERS ONLY EMPLOYEES OF THE UNITED STATES.
SEC. 508. THERE ARE HEREBY AUTHORIZED TO BE APPROPRIATED SUCH SUMS
AS MAY BE NECESSARY TO ENABLE THE SECRETARY TO CARRY OUT HIS FUNCTIONS
AND DUTIES UNDER THIS ACT.
SEC. 509. IF ANY PROVISIONS OF THIS ACT, OR THE APPLICATION OF SUCH
PROVISION TO ANY PERSON OR CIRCUMSTANCES, SHALL BE HELD INVALID, THE
REMAINDER OF THIS ACT, OR THE APPLICATION OF SUCH PROVISION TO PERSONS
OR CIRCUMSTANCES OTHER THAN THOSE AS TO WHICH IT IS HELD INVALID, SHALL
NOT BE AFFECTED THEREBY.
SEC. 510. IT SHALL BE UNLAWFUL FOR ANY PERSON TO DISCHARGE, FINE,
SUSPEND, EXPEL, DISCIPLINE, OR DISCRIMINATE AGAINST A PARTICIPANT OR
BENEFICIARY FOR EXERCISING ANY RIGHT TO WHICH HE IS ENTITLED UNDER THE
PROVISIONS OF AN EMPLOYEE BENEFIT PLAN, THIS TITLE, SECTION 3001,
//POST, P. 955.// OR THE WELFARE AND PENSION PLANS DISCLOSURE ACT, //29
USC 301 NOTE.// OR FOR THE PURPOSE OF INTERFERING WITH THE ATTAINMENT OF
ANY RIGHT TO WHICH SUCH PARTICIPANT MAY BECOME ENTITLED UNDER THE PLAN,
THIS TITLE, OR THE WELFARE AND PENSION PLANS DISCLOSURE ACT. IT SHALL
BE UNLAWFUL FOR ANY PERSON TO DISCHARGE, FINE, SUSPEND, EXPEL, OR
DISCRIMINATE AGAINST ANY PERSON BECAUSE HE HAS GIVEN INFORMATION OR HAS
TESTIFIED OR IS ABOUT TO TESTIFY IN ANY INQUIRY OR PROCEEDING RELATING
TO THIS ACT OR THE WELFARE AND PENSION PLANS DISCLOSURE ACT. THE
PROVISIONS OF SECTION 502 SHALL BE APPLICABLE IN THE ENFORCEMENT OF THIS
SECTION.
SEC. 511. IT SHALL BE UNLAWFUL FOR ANY PERSON THROUGH THE USE OF
FRAUD, FORCE, VIOLENCE, OR THREAT OF THEUSE OF FORCE OR VIOLENCE, TO
RESTRAIN, COERCE, INTIMIDATE, OR ATTEMPT TO RESTRAIN, COERCE, OR
INTIMIDATE ANY PARTICIPANT OR BENEFICIARY FOR THE PURPOSE OF INTERFERING
WITH OR PREVENTING THE EXERCISE OF ANY RIGHT TO WHICH HE IS OR MAY
BECOME ENTITLED UNDER THE PLAN, THIS TITLE, SECTION 3001, OR THE WELFARE
AND PENSION PLANS DISCLOSURE ACT. ANY PERSON WHO WILLFULLY VIOLATES
THIS SECTION SHALL BE FINED $10,000 OR IMPRISONED FOR NOT MORE THAN ONE
YEAR, OR BOTH.
SEC. 512. (A) (1) THERE IS HEREBY ESTABLISHED AN ADVISORY COUNCIL ON
EMPLOYEE WELFARE AND PENSION BENEFIT PLANS (HEREINAFTER IN THIS SECTION
REFERRED TO AS THE "COUNCIL") CONSISTING OF FIFTEEN MEMBERS APPOINTED BY
THE SECRETARY. NOT MORE THAN EIGHT MEMBERS OF THE COUNCIL SHALL BE
MEMBERS OF THE SAME POLITICAL PARTY.
(2) MEMBERS SHALL BE PERSONS QUALIFIED TO APPRAISE THE PROGRAMS
INSTITUTED UNDER THIS ACT.
(3) OF THE MEMBERS APPOINTED, THREE SHALL BE REPRESENTATIVES OF
EMPLOYEE ORGANIZATIONS (AT LEAST ONE OF WHOM SHALL BE REPRESENTATIVE OF
ANY ORGANIZATION MEMBERS OF WHICH ARE PARTICIPANTS IN A MULTIEMPLOYER
PLAN); THREE SHALL BE REPRESENTATIVES OF EMPLOYERS (AT LEAST ONE OF
WHOM SHALL GE REPRESENTATIVE OF EMPLOYERS MAINTAINING OR CONTRIBUTING TO
MULTIEMPLOYER PLANS); THREE REPRESENTATIVES SHALL BE APPOINTED FROM THE
GENERAL PUBLIC, ONE OF WHOM SHALL BE A PERSON REPRESENTING THOSE
RECEIVING BENEFITS FROM A PENSION PLAN; AND THERE SHALL BE ONE
REPRESENTATIVE EACH FROM THE FIELDS OF INSURANCE, CORPORATE TRUST,
ACTUARIAL COUNSELING, INVESTMENT COUNSELING, INVESTMENT MANAGEMENT, AND
THE ACCOUNTING FIELD.
(4) MEMBERS SHALL SERVE FOR TERMS OF THREE YEARS EXCEPT THAT OF THOSE
FIRST APPOINTED, FIVE SHALL BE APPOINTED FOR TERMS OF ONE YEAR, FIVE
SHALL BE APPOINTED FOR TERMS OF TWO YEARS, AND FIVE SHALL BE APPOINTED
FOR TERMS OF THREE YEARS. A MEMBER MAY BE REAPPOINTED. A MEMBER
APPOINTED TO FILL A VACANCY SHALL BE APPOINTED ONLY FOR THE REMAINDER OF
SUCH TERM. A MOJORITY OF MEMBERS SHALL CONSTITUTE A QUORUM AND ACTION
SHALL BE TAKEN ONLY BY A MAJORITY VOTE OF THOSE PRESENT AND VOTING.
(B) IT SHALL BE THE DUTY OF THE COUNCIL TO ADVISE THE SECRETARY WITH
RESPECT TO THE CARRYING OUT OF HIS FUNCTIONS UNDER THIS ACT AND TO
SUBMIT TO THE SECRETARY RECOMMENDATIONS WITH RESPECT THERETO. THE
COUNCIL SHALL MEET AT LEAST FOUR TIMES EACH YEAR AND AT SUCH OTHER TIMES
AS THE SECRETARY REQUESTS. IN HIS ANNUAL REPORT SUBMITTED PURSUANT TO
SECTION 513(B), THE SECRETARY SHALL INCLUDE EACH RECOMMENDATION WHICH HE
HAS RECEIVED FROM THE COUNCIL DURING THE PRECEDING CALENDAR YEAR.
(C) THE SECRETARY SHALL FURNISH TO THE COUNCIL AN EXECUTIVE SECRETARY
AND SUCH SECRETARIAL, CLERICAL, AND OTHER SERVICES AS ARE DEEMED
NECESSARY TO CONDUCT ITS BUSINESS. THE SECRETARY MAY CALL UPON OTHER
AGENCIES OF THE GOVERNMENT FOR STATISTICAL DATA, REPORTS, AND OTHER
INFORMATION WHICH WILL ASSIST THE COUNCIL IN THE PERFORMANCE OF ITS
DUTIES.
(D) (1) MEMBERS OF THE COUNCIL SHALL EACH BE ENTITLED TO RECEIVE THE
DAILY EQUIVALENT OF THE ANNUAL RATE OF BASIC PAY IN EFFECT FOR GRADE
GS-18 OF THE GENERAL SCHEDULE FOR EACH DAY //5 USC 5332.// (INCLUDING
TRAVEL TIME) DURING WHICH THEY ARE ENGAGED IN THE ACTUAL PERFORMANCE OF
DUTIES VESTED IN THE COUNCIL.
(2) WHILE AWAY FROM THEIR HOMES OR REGULAR PLACES OF BUSINESS IN THE
PERFORMANCE OF SERVICES FOR COUNCIL, MEMBERS OF THE COUNCIL SHALL BE
ALLOWED TRAVEL EXPENSES, INCLUDING PERDIEM IN LIEU OF SUBSISTENCE, IN
THE SAME MANNER AS PERSONS EMPLOYED INTERMITTENTLY IN THE GOVERNMENT
SERVICE ARE ALLOWED EXPENSES UNDER SECTION 5703(B) OF TITLE 5 OF THE
UNITED STATES CODE.
(E) SECTION 14(A) OF THE FEDERAL ADVISORY COMMITTEE ACT //86 STAT.
776 5 USC APP. 14.// (RELATING TO TERMINATION) SHALL NOT APPLY TO THE
COUNCIL.
SEC. 513. (A) (1) THE SECRETARY IS AUTHORIZED TO UNDERTAKE RESEARCH
AND SURVEYS AND IN CONNECTION THEREWITH TO COLLECT, COMPILE, ANALYZE AND
PUBLISH DATA, INFORMATION, AND STATISITCS RELATING TO EMPLOYEE BENEFIT
PLANS, INCLUDING RETIREMENT, DEFERRED COMPENSATION, AND WELFARE PLANS,
AND TYPES OF PLANS NOT SUBJECT TO THIS ACT.
(2) THE SECRETARY IS AUTHORIZED AND DIRECTED TO UNDERTAKE RESEARCH
STUDIES RELATING TO PENSION PLANS, INCLUDING BUT NOT LIMITED TO (A) THE
EFFECTS OF THIS TITLE UPON THE PROVISIONS AND COSTS OF PENSION PLANS,
(B) THE ROLE OF PRIVATE PENSIONS IN MEETING THE ECONOMIC SECURITY NEEDS
OF THE NATION, AND (C) THE OPERATION OF PRIVATE PENSION PLANS INCLUDING
TYPES AND LEVELS OF BENEFITS, DEGREE OF RECIPROCITY OR PORTABILITY, AND
FINANCIAL AND ACTUARIAL CHARACTERISTICS AND PRACTICES, AND METHODS OF
ENCOURAGING THE GROWTH OF THE PRIVATE PENSION SYSTEM.
(3) THE SECRETARY MAY, AS HE DEEMS APPROPRIATE OR NECESSARY,
UNDERTAKE OTHER STUDIES RELATING TO EMPLOYEE BENEFIT PLANS, THE MATTERS
REGULATED BY THIS TITLE, AND THE ENFORCEMENT PROCEDURES PROVIDED FOR
UNDER THIS TITLE.
(4) THE RESEARCH, SURVEYS, STUDIES, AND PUBLICATIONS REFERRED TO IN
THIS SUBSECTION MAY BE CONDUCTED DIRECTLY, OR INDIRECTLY THROUGH GRANT
OR CONTRACT ARRANGEMENTS.
(B) THE SECRETARY SHALL SUBMIT ANNUALLY A REPORT TO THE CONGRESS
COVERING HIS ADMINISTRATION OF THIS TITLE FOR THE PRECEDING YEAR, AND
INCLUDING (1) AN EXPLANATION OF ANY VARIANCES OR EXTENSIONS GRANTED
UNDER SECTION 110, 207, 303, OR 304 //ANTE, PP. 851, 865, 872, 873.//
AND THE PROJECTED DATE FOR TERMINATING THE VARIANCE; (2) THE STATUS OF
CASES IN ENFORCEMENT STATUS; (3) RECOMMENDATIONS RECEIVED FROM THE
ADVISORY COUNCIL DURING THE PRECEDING YEAR; AND (4) SUCH INFORMATION,
DATA, RESEARCH FINDINGS, STUDIES, AND RECOMMENDATIONS FOR FURTHER
LEGISLATION IN CONNECTION WITH THE MATTERS COVERED BY THIS TITLE AS HE
MAY FIND ADVISABLE.
(C) THE SECRETARY IS AUTHORIZED AND DIRECTED TO COOPERATE WITH THE
CONGRESS AND ITS APPROPRIATE COMMITTEES, SUBCOMMITTEES, AND STAFF IN
SUPPLYING DATA AND ANY OTHER INFORMATION, AND PERSONNEL AND SERVICES,
REQUIRED BY THE CONGRESS IN ANY STUDY, EXAMINATION, OR REPORT BY THE
CONGRESS RELATING TO PENSION BENEFIT PLANS ESTABLISHED OR MAINTAINED BY
STATES OR THEIR POLITICAL SUBDIVISIONS.
SEC. 514. (A) EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION
THE PROVISIONS OF THIS TITLE AND TITLE IV SHALL SUPERSEDE ANDY AND ALL
STATE LAWS INSOFAR AS THEY MAY NOW OR HEREAFTER RELATE TO AN EMPLOYEE
BENEFIT PLAN DESCRIBED IN SECTION 4(A) AND NOT EXEMPT UNDER SECTION 4(
B). THIS SECTION SHALL TAKE EFFECT ON JANUARY 1, 1975.
(B) (1) THIS SECTION SHALL NOT APPLY WITH RESPECT TO ANY CAUSE OF
ACTION WHICH AROSE, OR ANY ACT OR OMISSION WHICH OCCURRED, BEFORE
JANUARY 1, 1975.
(2) (A) EXCEPT AS PROVIDED IN SUBPARAGRAPH (B), NOTHING IN THIS TITLE
SHALL BE CONSTRUED TO EXEMPT OR RELIEVE ANY PERSON FROM ANY LAW OF ANY
STATE WHICH REGULATES INSURANCE, BANKING, OR SECURITIES.
(B) NEITHER AN EMPLOYEE BENEFIT PLAN DESCRIBED IN SECTION 4(A), WHICH
IS NOT EXEMPT UNDER SECTION 4(B) (OTHER THAN A PLAN ESTABLISHED
PRIMARILY FOR THE PURPOSE OF PROVIDING DEATH BENEFITS), NOR ANY TRUST
ESTABLISHED UNDER SUCH A PLAN, SHALL BE DEEMED TO BE AN INSURANCE
COMPANY OR OTHER INSURER, BANK, TRUST COMPANY, OR INVESTMENT COMPANY OR
TO BE ENGAGED IN THE BUSINESS OF INSURANCE OR BANKING FOR PURPOSES OF
ANY LAW OF ANY STATE PURPORTING TO REGULATE INSURANCE COMPANIES,
INSURANCE CONTRACTS, BANKS, TRUST COMPANIES, OR INVESTMENT COMPANIES.
(3) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PROHIBIT USE BY THE
SECRETARY OF SERVICES OR FACILITIES OF A STATE AGENCY AS PERMITTED UNDER
SECTION 506 OF THIS ACT.
(4) SUBSECTION (A) SHALL NOT APPLY TO ANY GENERALLY APPLICABLE
CRIMINAL LAW OF A STATE.
(C) FOR PURPOSES OF THIS SECTION:
(1) THE TERM "STATE LAW" INCLUDES ALL LAWS, DECISIONS, RULES,
REGULATIONS, OR OTHER STATE ACTION HAVING THE EFFECT OF LAW, OF
ANY STATE. A LAW OF THE UNITED STATESAPPLICABLE ONLY TO THE
DISTRICT OF COLUMBIA SHALL BE TREATED AS A STATE LAW RATHER THAN A
LAW OF THE UNITED STATES.
(2) THE TERM "STATE" INCLUDES A STATE, ANY POLITICAL
SUBDIVISION THEREOF, OR ANY AGENCY OR INSTRUMENTALITY OR EITHER ,
WHICH PURPORTS TO REGULATE, DIRECTLY OR INDIRECTLY, THE TERMS AND
CONDITIONS OF EMPLOYEE BENEFIT PLANS COVERED BY THIS TITLE.
(D) NOTHING IN THIS TITLE SHALL BE CONSTRUED TO ALTER, AMEND, MODIFY,
INVALIDATE, IMPAIR, OR SUPERSEDE ANY LAW OF THE UNITED STATES (EXCEPT AS
PROVIDED IN SECTION 111 AND 507(B)) //ANTE, PP. 851, 894.// OR ANY RULE
OR REGULATION ISSUED UNDER ANY SUCH LAW.
PUBLIC LAW 93-405, 88 STAT 822, DISTRICT OF COLUMBIA APPROPRIATION
ACT.
BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE
UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT THE FOLLOWING SUMS
ARE APPROPRIATED, OUT OF ANY MONEY IN THE TREASURY NOT OTHERWISE
APPROPRIATED, FOR THE DISTRICT OF COLUMBIA FOR THE FISCAL YEAR ENDING
JUNE 30, 1975, AND FOR OTHER PURPOSES, NAMELY:
FEDERAL PAYMENT TO THE IDSTRICT OF COLUMBIA
FOR PAYMENT TO THE FOLLOWING FUNDS OF THE DISTRICTOF COLUMBIA FOR THE
FISCAL YEAR ENDING JUNE 30, 1975: $221,200,000 TO THE GENERAL FUND;
$3,200,000 TO THE WATER FUND; AND $$2,400,000 TO THE SANITARY SEWAGE
WORKS FUND; AS AUTHORIZED BY THE DISTRICT OF COLUMBIA SELF-GOVERNMENT
AND GOVERNMENTAL REORGANIZATION ACT, PUBLIC LAW 93 - 198, //87 STAT.
774, D.C. CODE 1 - 101 NOTE.// AND THE ACT OF MAY 18, 1954 (D.C. CODE,
43 - 1541 AND 1611) //68 STAT. 102, 108.// .
LOANS TO THE DISTRICT OF COLUMBIA FOR CAPITAL OUTLAY
FOR LOANS TO THE DISTRICT OF COLUMBIA, AS AUTHORIZED BY THE ACT OF
JUNE 6, 1958 (72 STAT. 183), AS AMENDED, //D.C. CODE 9 - 220.// THE ACT
OF DECEMBER 9, 1969 (83 STAT. 321), AND THE ACT OF MAY 18, 1954 (68
STAT. 110), AS AMENDED, AND THE DISTRICT OF COLUMBIA SELF-GOVERNMENT AND
GOVERNMENTAL REORGANIZATION ACT (PUBLIC LAW 93 - 198) //D.C. CODE 1 -
1441 NOTE, 7 - 133.// , $152,600,000, WHICH TOGETHER WITH BALANCES OF
PREVIOUS APPROPRIATIONS FOR THIS PURPOSE, SHALL REMAIN AVAILABLE UNTIL
EXPENDED AND BE ADVANCED UPON REQUEST OF THE COMMISSIONER, AS FOLLOWS:
TO THE GENERAL FUND, $143,600,000, AND TO THE HIGHWAY FUND, $9,000,000.
DIVISION OF EXPENSES
THE FOLLOWING AMOUNTS ARE APPROPRIATED FOR THE DISTRICT OF COLUMBIA
FOR THE CURRENT FISCAL YEAR OUT OF THE GENERAL FUND OF THE DISTRICT OF
COLUMBIA, EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED:
GENERAL OPERATING EXPENSES
GENERAL OPERATING EXPENSES, $77,524,400, OFWHICH $7,670,900 SHALL BE
PAYABLE FROM THE REVENUE SHARING TRUST FUND, $660,100 FROM THE HIGHWAY
FUND (INCLUDING $79,200 FROM THE MOTOR VEHICLE PARKING ACCOUNT),
$107,700 FROM THE WATER FUND, AND $71,800 FROM THE SANITARY SEWAGE WORKS
FUND: PROVIDED, THAT NOT TO EXCEED $2,500 FOR THE COMMISSIONER AND
$2,500 FOR THE CHAIRMAN OF THE DISTRICT OF COLUMBIA COUNCIL SHALL BE
AVAILABLE FROM THIS APPROPRIATION FOR EXPENDITURES FOR OFFICIAL
PURPOSES: PROVIDED FURTHER, THAT, FOR THE PURPOSE OF ASSESSING AND
REASSESSING REAL PROPERTY IN THE DISTRICT OF COLUMBIA, $5,000 OF THE
APPROPRIATION SHALL BE AVAILABLE FOR SERVICES AS AUTHORIZED BY 5 U.S.C.
3109, //80 STAT. 416.// BUT AT RATES FOR INDIVIDUALS NOT IN EXCESS OF
$100 PER DIEM: PROVIDED FURTHER, THAT NOT TO EXCEED $7,500 OF THIS
APPROPRIATION SHALL BE AVAILABLE FOR TEST BORINGS AND SOIL
INVESTIGATIONS: PROVIDED FURTHER, THAT $2,375,000 OF THIS APPROPRIATION
PAYABLE FROM THE REVENUE SHARING TRUST FUND (TO REMAIN AVAILABLE UNTIL
EXPENDED) SHALL BE AVAILABLE SOLELY FOR DISTRICT OF COLUMBIA EMPLOYEES'
DISABILTY COMPENSATION: PROVIDED FURTHER, THAT NOT TO EXCEED $128,000
OF THIS APPROPRIATION SHALL BA AVAILABLE FOR SETTLEMENT OF PROPERTY
DAMAGE CLAIMS NOT IN EXCESS OF $500 EACH AND PERSONAL INJURY CLAIMS NOT
IN EXCESS OF $1,000 EACH: PROVIDED FURTHER, THATNOT TO EXCEED $50,000
OF ANY APPROPRIATIONS AVAILABLE TO THE DISTRICT OF COLUMBIA MAY BE USED
TO MATCH FINANCIAL CONTRIBUTIONS FROM THE DEPARTMENT OF DEFENSE TO THE
DISTRICT OF COLUMBIA OFFICE OF CIVIL DEFENSE FOR THE PURCHASE OF CIVIL
DEFENSE EQUIPMENT AND SUPPLIES APPROVED BY THE DEPARTMENT OF DEFENSE,
WHEN AUTHORIZED BY THE COMMISSIONER.
PUBLIC SAFETY
PUBLIC SAFETY, INCLUDING PURCHASE OF TWO HENDRED AND SIXTY-FIVE
PASSENGER MOTOR VEHICLES FOR REPLACEMENT ONLY (INCLUDING TWO HUNDRED AND
SIXTY FOR POLICE-TYPE USE AND FIVE FOR FIRE-TYPE USE WITHOUT REGARD TO
THE GENERAL PURCHASE PRICE LIMITATION FOR THE CURRENT FISCAL YEAR BUT
NOT IN EXCESS OF $400 PER VEHICLE FOR POLICE-TUPE AND $600 PER VEHICLE
FOR FIRE-TYPE USE ABOVE SUCH LIMITATION); $207,226,200, OF WHICH
$5,500,000 SHALL BE PAYABLE FROM THE REVENUE SHARING TRUST FUND, AND
$8,117,200 FROM THE HIGHWAY FUND (INCLUDING $112,000 FROM THE MOTOR
VEHICLE PARKING ACCOUNT): PROVIDED, THAT THE POLICE DEPARTMENT IS
AUTHORIZED TO REPLACE NOT TO EXCEED TWENTY-FIVE PASSENGER CARRYING
VEHICLES, AND THE FIRE DEPARTMENT NOT TO EXCEED FIVE SUCH VEHICLES
ANNUALLY WHENEVER THE COST OF REPAIR TO ANY DAMAGED VEHICLE EXCEEDS
THREE-FOURTHS THE COST OF THE REPLACEMENT: PROVIDED FURTHER, THAT
$1,159,800 SHALL BE AVAILABLE FOR REIMBURSEMENT TO THE UNITED STATES FOR
SERVICES PROVIDED TO THE DISTRICT OF COLUMBIA BY THE OFFICES OF THE
UNITED STATES ATTORNEY AND THE UNITED STATES MARSHAL FOR THE DISTRICT OF
COLUMBIA: PROVIDED FURTHER, THAT NOT TO EXCEED $200,000 SHALL BE
AVAILABLE FROM THIS APPROPRIATION FOR THE CHIEF OF POLICE FOR THE
PREVENTION AND DETECTION OF CRIME.
EDUCATION
EDUCATION, INCLUDING THE DEVELOPMENT OF NATIONAL DEFENSE EDUCATION
PROGRAMS, $207,748,800, OF WHICH $6,351,00 SHALL BE PAYABLE FROM THE
REVENUE SHARING TRUST FUND, AND $165,100 FROM THE HIGHWAY FUND:
PROVIDED, THAT THE DISTRICT OF COLUMBIA PUBLIC SCHOOLS ARE AUTHORIZED TO
ACCEPT NOT TO EXCCE THIRTY-ONE MOTOR VEHICLES FOR EXCLUSIVE USE IN THE
DRIVER EDUCATION PROGRAM: PROVIDED FURTHER. THAT NOT TO EXCEED $1,000
FOR THE SUPERINTENDENT OF SCHOOLS, $1,000 FOR THE PRESIDENT OF FEDERAL
CITY COLLEGE. AND $1,000 FOR THE PRESIDENT OF WASHINGTON TECHNICAL
INSTITUTE SHALL BE AVAILABLE FROM THIS APPROPRIATION FOR EXPENDITURES
FOR OFFICIAL PURPOSES.
RECREATION, $14,902,000, OF WHICH $204,000 SHALL BE PAYABLE FROM THE
EXPENDITURES FOR OFFICAL PURPOSES.
RECREATION
RECREATION, $14,902,000, OF WHICH $204,000 SHALL BE PAYABLE FROM THE
REVENUE SHARING TRUST FUND.
HUMAN RESOURCES
HUMAN RESOURCES, INCLUDING CARE AND TREATMENT OF INDIGENT PATIENTS IN
INSTITUTIONS UNDER CONTRACTS TO BE MADE BY THE DIRECTOR OF HUMAN
RESOURCES; $224,708,500, OF WHICH $7,465,000 SHALL BE PAYABLE FROM THE
REVENUE SHARING TRUST FUND: PROVIDED. THAT THE INPATIENT RATE AND
OUTPATIENT RATE UNDER SUCH CONTRACTS SHALL NOT EXCEED $76 PER DIEM AND
THE OUTPATIENT RATE SHALL NOT EXCEED $12 PER VISIT AND THE INPATIENT
RATE (EXCLUDING THE PROPORTIONATE SHARE FOR REPAIRS AND CONSTRUCTION)
FOR SERVICES RENDERED BY SAINT ELIZABETS HOSPITAL FOR PATIENT CARE SHALL
BE $24.53 PER DIEM: PROVIDED FURTHER, THAT TOTAL REIMBURSEMENTS TO
SAINT ELIZABETHS HOSPITAL, INCLUDING FUNDS FROM TITLE XIX OF THE SOCIAL
SECURITY ACT, //79 STAT. 343; 86 STAT. 1426, 42 USC 1396.// SHALL NOT
EXCEED THE AMOUNT FOR THE FISCAL YEAR 1970: PROVIDED FURTHER, THAT THE
HOSPITAL RATES SPECIFIED HEREIN SHALL NOT APPLY, BEGINING JULY 1, 1969,
TO SERVICES PROVIDED TO PATIENTS WHO ARE ELIGIBLE FOR SUCH SERVICES
UNDER THE DISTRICT OF COLUMBIA PLAN FOR MEDICAL ASSISTANCE UNDER TITLE
XIX OF THE SOCIAL SECURITY ACT //79 STAT. 343; 86 STAT. 1426, 42 USC
1396.// PROVIDED FURTHER, THAT THIS APPROPRIATION SHALL BE AVAILABE FOR
THE FURNISHING OF MEDICAL ASSISTANCE TO INDIVIDUALS SIXTY-FIVE YEARS OF
AGE OR OLDER WHO ARE RESIDING IN THE DISTRICT OF COLUMBIA.
HIGHWAYS AND TRAFFIC
HIGHWAYS AND TRAFFIC, INCLUDING RENTAL OF ONE PASSENGER-CARRYING
VEHICLE FOR USE BY THE COMMISSIONER; AND PURCHASE OF TWENTY-SIX
PASSENGER MOTOR VEHICLES; $24,180,000 OF WHICH $2,380,900 SHALL BE
PAYABLE FORM THE REVENUE SHARING TRUST FUND, AND $18,874,700 FROM THE
HIGHWAY FUND (INCLUDING $640,800 FROM THE MOTOR VEHICLE PARKING
ACCOUNT): PROVIDED, THAT THIS APPROPRIATION SHALL NOT BE AVAILABLE FOR
THE PURCHASE OF DRIVER-TRAINING VEHICLES.
ENVIRONMENTAL SERVICES
ENVIRONMENTAL SERVICES, $50,347,000, OF WHICH $1,397,200 SHALL BE
PAYABLE FROM THE REVENUE SHARING TRUST FUND, $13,090,200 FROM THE WATER
FUND,$15,596,600 FROM THE SANITARY SEWAGE WORKS FUND, AND $63,300 FROM
THE METROPOLITAN AREA SANITARY SEWAGE WORKS FUND: PROVIDED, THAT THIS
APPROPRIATION SHALL NOT BE AVAILABLE FOR COLLECTING ASHES OR
MISCELLANEOUS REFUSE FROM HOTELS AND PLACES OF BUSINESS OR FROM
APARTMENT HOUSES WITH FOUR OR MORE APARTMENTS, OR FROM ANY BUILDING OR
CONNECTED GROUP OF BUILDINGS OPERATING AS A ROOMING OR BOARDING HOUSE AS
DEFINED IN THE HOUSING REGULATIONS OF THE DISTRICT OF COLUMBIA.
PERSONAL SERVICES
FOR PAY INCREASES AND RELATED RETIREMENT COSTS FOR GENERAL SCHEDULE
EMPLOYEES, WAGE BOARD EMPLOYEES, INTERNS AND RESIDENTS, AND PUBLIC
SCHOOLS CAFETERIA EMPLOYEES TO BE TRANSFERRED BY THE COMMISSIONER OF THE
DISTRICT OF COLUMBIA TO THE APPROPRIATIONS FOR THE FISCAL YEAR 1975 FROM
WHICH SAID EMPLOYEES ARE PROPERLY PAYABLE, $12,978,000, OF WHICH
$535,600 SHALL BE PAYABLE FROM THE HIGHWAY FUND (INCLUDING $6,200 FROM
THE MOTOR VEHICLE PARKING ACCOUNT), $504,800 FROM THE WATER FUND, AND
$373,400 FROM THE SANITRY SEWAGE WORKS FUND; PROVIDED, THAT $251,300
SHALL BE AVAILABLE FOR REIMBURSEMENT TO THE UNITED STATES FOR SERVICES
PROVIDED TO THE DISTRICT OF COLUMBIA BY THE OFFICES OF THE UNITED STATES
ATTORNEY AND THE UNITED STATES MARSHAL FOR THE DISTRICT OF COLUMBIA.
SETTLEMENT OF CLAIMS AND SUITS
FOR PAYMENT OF PROPERTY DAMAGE CLAIMS IN EXCESS OF $500 AND OF
PERSONAL INJURY CLAIMS IN EXCESS OF $1,000, APPROVED BY THE COMMISSIONER
IN ACCORDANCE WITH THE PROVISIONS OF THE ACT OF FEBRUARY 11, 1929, AS
AMENDED (45 STAT. 1160; 46 STAT. 500; 65 STAT. 131), //D.C. CODE 1 -
902 TO 1 - 906.// $34,000
REPAYMENT OF LOANS AND INTEREST
FOR REIMBURSEMENT TO THE UNITED STATES OF FUNDS LOANED IN COMPLIANCE
WITH SECTIONS 108, 217, AND 402 OF THE ACT OF MAY 18, 1954 (68 STAT.
103, 109, AND 110), AS AMENDED //D.C. CODE 43 - 1540, 43 - 1616, 7 -
133.// , SECTION 9 OF THE ACT OF SEPTEMBER 7, 1957 (71 STAT. 619), AS
AMENDED //D.C. CODE 2 - 1727.// , SECTION 1 OF THE ACT OF JUNE 6, 1958
(72 STAT. 183), AS AMENDED; //D.C. CODE 9 - 220.// AND SECTION 4 OF THE
ACT OF JUNE 12, 1960 (74 STAT. 211), AS AMENDED //D.C. CODE 43 - 1623.//
, INCLUDING INTEREST AS REQUIRED THEREBY, $49,067,000, OF WHICH
$6,977,100 SHALL BE PAYABLE FROM THE HIGHWAY FUND $2,219,000 FROM THE
WATER FUND, $1,747,400 FROM THE SANITARY SEWAGE WORKS FUND, AND $133,400
FROM THE METROPOLITAN AREA SANITARY SEWAGE WORKS FUND.
CAPITAL OUTLAY
FOR REIMBURSEMENT TO THE UNITESD STATES OF FUNDS LOANED IN COMPLIANCE
WITH THE ACT OF AUGUST 7, 1946 (60 STAT. 896), AS AMENDED // 72 STAT.
15.// , AND PAYMENTS UNDER THE ACT OF JULY 2, 1954 (68 STAT. 443),
CONSTRUCTION PROJECTS AS AUTHORIZED BY THE ACTS OF APRIL 22, 1904 (33
STAT. 244), MAY 18, 1954 (68 STAT. 105, 110), JUNE 6, 1958 (72 STAT.
183), AUGUST 20, 1958 (72 STAT. 686), AND THE ACT OF DECEMBER 9, 1969
(82 STAT. 321) //D.C. CODE 43 - 1510, 43 - 1604, 7 - 133, 9 - 220, 40 -
804, 1 - 1441 NOTE.// ; INCLUDING ACQUISITION OF SITES; PREPARATION OF
PLANS AND SPECIFICATIONS; CONDUCTING PRELIMINARY SURVEYS; ERECTION OF
STRUCTURES, INCLUDING BUILDING IMPROVEMENT AND ALTERATION AND TREATMENT
OF GROUNDS; TO REMAIN AVAILABLE UNTIL EXPENDED, $204,918,000, OF WHICH
$3,100,000 MAY BE USED FOR (1) THE CONSTRUCTION OF A FULLY ENCLOSED
SWINNING POOL AT THE SOUTH END OF THE EXISTING STRUCTURES COMPRISING THE
WOODROW WILSON HIGH SCHOOL, INCLUDING APPROPRIATE LANDSCAPING OF THE
STRUCTURE ENCLOSING SUCH POOL, (2) THE CONSTRUCTION OF A SINGLE ENTRANCE
TO SUCH POOL FROM FORT DRIVE, AND (3) THE CLOSING OF THE EXISTING ACCESS
ROAD BETWEEN NEBRASKA AVENUE AND FORT DRIVE AT THE SOUTH END OF SUCH
HIGH SCHOOL, INCLUDING APPROPRIATE LANDSCAPING AT THE PRESENT ACCESS
ROAD ENTRANCE TO BE CLOSED; THE USE OF SUCH POOL DURING PERIODS OTHER
THAN REGULAR SCHOOL HOURS ON REGULAR SCHOOL DAYS AND ON DAYS WHEN SCHOOL
IS NOT IN REGULAR SESSION TO BE IN ACCORDANCE WITH THE TERMS OF A JOINT
AGREEMENT BETWEEN THE DISTRICT OF COLUMBIA BOARD OF EDUCATION AND THE
DISTRICT OF COLUMBIA DEPARTMENT OF RECREATION, AND ON NO DAY MAY THE USE
OF SUCH POOL EXTEND BEYOND 9 P.M. AND $9,345,000 SHALL BE PAYABLE FROM
THE HIGHWAY FUND, $2,605,000 FROM THE WATER FUND, AND $1,405,000 FROM
THE SANITARY SEWAGE WORKS FUND: PROVIDED, THAT $7,178,200 SHALL BE
ABAILABLE FOR CONSTRUCTION SERVICES BY THE DIRECTOR OF THE DEPARTMENT OF
GENERAL SERVICES OR BY CONTRACT FOR ARCHITECTURAL ENGINEERING SERVICES,
AS MAY BE DETERMINED BY THE COMMISSIONER, AND THE FUNDS FOR THE USE OF
THE DIRECTOR OF THE DEPARTMENT OF GENREAL SERVICES SHALL BE ADVANCED TO
THE APPROPRIATION ACCOUNT, "CONSTRUCTION SERVICES, DEPARTMENT OF GENERAL
SERVICES": PROVIDED FURTHER, THAT THE AMOUNT APPROPRIATED TO THE
CONSTRUCTION SERVICES FUND, DEPARTMENT OF GENERAL SERVICES, BE LIMITED,
DURING THE CURRENT FISCAL YEAR, TO TEN PER CENTUM OF APPROPRIATIONS FOR
ALL CONSTRUCTION PROJECTS: PROVIDED FURTHER, NOTWITHSTANDING THE
FOREGOING, ALL AUTHORIZATIONS FOR CAPITAL OUTLAY PROJECTS, EXCEPT THOSE
PROJEVTS COVERED BY THE FIRST SENTENCE OF SECTION 23(A) OF THE
FEDERAL-AID HIGHWAY ACT OF 1968 (PUBLIC LAW 90 - 495, APPROVED AUGUST
238 1968), //82 STAT. 827, D.C. CODE 7 - 135 NOTE.// FOR WHICH FUNDS ARE
PROVIDED BY THIS PARAGRAPH, SHALL EXPIRE ON JUNE 30, 1976, EXCEPT
AUTHORIZATIONS FOR PROJECTS AS TO WHICH FUNDS HAVE BEEN OBLIGATED IN
WHOLE OR IN PART PRIOR TO SUCH DATE. UPON EXPIRATION OF ANY SUCH
PROJECT AUTHORIZATION THE FUNDS PROVIDED HEREIN FOR SUCH PROJECT SHALL
LAPSE.
GENERAL PROVISIONS
SEC. 1. EXCEPT AS OTHERWISE PROVIDED HEREIN, ALL VOUCHERS COVERING
EXPENDITURES OF APPROPRIATIONS CONTAINED IN THIS ACT SHALL BE AUDITED
BEFORE PAYMENT BY THE DESIGNATED CERTIFYING OFFICIAL AND THE VOUCHERS AS
APPROVED SHALL BE PAID BY CHECKS ISSUED BY THE DESIGNATED DISBURSING
OFFICIAL.
SEC. 2. WHENEVER IN THIS ACT AN AMOUNT IS SPECIFIED WITHIN AN
APPROPRIATION FOR PARTICULAR PURPOSES OR OBJECT OF EXPENDITURE, SUCH
AMMOUNT, UNLESS OTHERWISE SPECIFIED, SHALL BE CONSIDERED AS THE MAXIMUM
AMOUNT WHICH MAY BE EXPENDED FOR SAID PURPOSE OR OBJECT RATHER THAN AN
AMOUNT SET APART EXCLUSIVELY THEREFOR.
SEC. 3. APPROPRIATIONS IN THIS ACT SHALL BE AVAILABLE, WHEN
AUTHORIZED OR APPROVED BY THE COMMISSIONER, FOR ALLOWANCES FOR PRIVATELY
OWNED AUTOMOBILES USED FOR THE PERFORMANCE OF OFFICIAL DUTIES AT 13
CENTS PER MILE BUT NOT TO EXCEED $45 A MONTH FOR EACH AUTOMOBILE, UNLESS
OTHERWISE THEREIN SPECIFICALLY PROVIDED, EXCEPT THAT ONE HUNDRED AND
THIRTEEN (EIGHTEEN FOR VENEREAL DISEASE INVESTIGATORS IN THE DEPARTMENT
OF HUMAN RESOURCES) SUCH ALLOWANCES AT NOT MORE THAN $715 EACH PER ANNUM
MAY BE AUTHORIZED OR APPROVED BY THE COMMISSIONER.
SEC 4. APPROPRIATIONS IN THIS ACT SHALL BE AVAILABLE FOR EXPENSES OF
TRAVEL AND FOR THE PAYMENT OF USES OF ORGANIZATIONS CONCERNED WITH THE
WORK OF THE DISTRICT OF COLUMBIA GOVERNMENT, WHEN AUTHORIZED BY THE
COMMISSIONER.
SEC. 5, APPROPRIATIONS IN THIS ACT SHALL NOT BE USED FOR OR IN
CONNECTION WITH THE PREPARATION, ISSUANCE, PUBLICATION, OR ENFORCEMENT
OF ANY REGULATION OR ORDER OF THE PUBLIC SERVICE COMMISSION REQUIRING
THE INSTALLATION OF METERS IN TAXICABS, OR FOR OR IN CONNECTION WITH THE
LICENSING OF ANY VEHICLE TO BE OPERATED AS A TAXICAB EXCEPT FOR
OPERATION IN ACCORDANCE WITH SUCH SYSTEM OF UNIFORM ZONES AND RATES AND
REGULATIONS APPLICABLE THERETO AS SHALL HAVE BEEN PRESCRIBED BY THE
PUBLIC SERVICE COMMISSION.
SEC. 6. APPROPRIATIONS IN THIS ACT SHALL NOT BE AVAILABLE FOR THE
PAYMENT OF RATES FOR ELECTRIC CURRENT FOR STREET LIGHTING IN EXCESS OF 2
CENTS PER KILOWATT-HOUR FOR CURRENT CONSUMED. //D.C. CODE 7 - 701
NOTE.//
SEC. 7. THERE ARE HEREBY APPROPRIATED FROM THE APPLICABLE FUNDS OF
THE DISTRICT OF COLUMBIA SUCH SUMS AS MAY BE NECESSARY FOR MAKING
REFUNDS AND FOR THE PAYMENT OF JUDGMENTS WHICH HAVE BEEN ENTERED AGAINST
THE GOVERNMENT OF THE DISTRICT OF COLUMBIA: PROVIDED, THAT NOTHING
CONTAINED IN THIS SECTION SHALL BE CONSTRUED AS MODIFYING OR AFFECTING
THE PROVIDIONS OF PARAGRAPH 2, SUBSECTION (C) OF SECTION 11 OF TITLE XII
OF THE DISTRICT OF COLUMBIA INCOME AND FRANCHISE TAX ACT OF 1947, AS
AMENDED. //70 STAT. 78, D.C. CODE 47 - 1586J.//
SEC. 8. //D.C. CODE 3 - 204 NOTE.// APPROPRIATIONS IN THIS ACT SHALL
BE AVAILABLE FOR THE PAYMENT OF PUBLIC ASSISTANCE WITHOUT REFERENCE TO
THE REQUIREMENT OF SUBSECTION (B) OF SECTION 5 OF THE DISTRICT OF
COLUMBIA PUBLIC ASSISTANCE ACT OF 1962 //76 STAT. 915, D.C. CODE 3 -
204.// AND FOR THE NON-FEDERAL SHARE OF FUNDS NECESSARY TO QUALIFY FOR
FEDERAL ASSISTANCE UNDER THE ACT OF JULY 31, 1968 (PUBLIC LAW 90 - 455).
//86 STAT. 532, 42 USC 3801 NOTE.//
SEC. 9. NO PART OF ANY APPROPRIATION CONTAINED IN THIS ACT SHALL
REMAIN AVAILABLE FOR OBLIGATION BEYOND THE CURRENT FISCAL YEAR UNLESS
EXPRESSLY SO PROVIDED HEREIN.
SEC. 10. NO PART OF ANY FUNDS APPROPRIATED BY THIS ACT SHALL BE USED
TO PAY THE COMPENSATION NWHETHER BY CONTRACT OR OTHERWISE) OF ANY
INDIVIDUAL FOR PERFORMING SERVICES AS A CHAUFFEUR OR DRIVER FOR ANY
DESIGNATED OFFICER OR EMPLOYEE OF THE DISTRICT OF COLUMBIA GOVERNMENT
(OTHER THAN THE COMMISSIONER OF THE DISTRICT OF COLUMBIA. CHIEF OF
POLICE AND FIRE CHIEF), OR FOR PERFORMING SERVICES AS ACHAUFFEUR OR
DRIVER OF A MOTOR VEHICLE ASSIGNED FOR THE PERSONAL OR INDIVIDUAL USE OF
ANY SUCH OFFIER OR EMPLOYEE (OTHER THAN THE COMMISSIONER OF THE DISTRICT
OF COLUMBIA. CHIEF OF POLICE AND FIRE CHIEF). NO PART OF ANY FUNDS
APPROPRIATED BY THIS ACT, IN EXCESS OF $12,000 IN THE AGREGATE, SHALL,
IN ANY FISCAL YEAR, BE USED TO PAY THE COMPENSATION (WHETHER BY CONTRACT
OR OTHERWISE) OF INDIVIDUALS FOR PERFORMING SERVICES AS A CHAUFFEUR OR
DRIVER FOR THE COMMISSIONER OF THE DISTRICT OF COLUMBIA, OR FOR
PERFORMEING SERVICES AS A CHAUFFEUR OR DRIVER OF A MOTOR VEHICLE
ASSIGNED FOR THE PERSONAL OR INDIVIDUAL USE OF THE COMMISSIONER OF THE
DISTRICT OF COLUMBIA.
SEC. 11. NOT OT EXCEED 4 1/2 PER CENTUM OF THE TOTAL OF ALL FUNDS
APPROPRIATED BY THIS ACT FOR PERSONAL COMPENSATION MAY BE USED TO PAY
THE COST OF OVERTIME OR TEMPORARY POSITIONS. //D.C. CODE 1 0 216
NOTE.//
SEC 12. THE TOTAL EXPENDITURE OF FUNDS APPROPRIATED BY THIS ACT FOR
AUTHORIZED TRAVEL AND PER DIEM COSTS OUTSIDE THE DISTRICT OF COLUMBIA,
MARYLAND, AND VIRGINIA SHALL NOT EXCEED $210,000.
SEC. 13. APPROPRIATIONS IN THIS ACT SHALL NOT BE AVAILABLE, DURING
THE FISCAL YEAR ENDING JUNE 30, 1975, FOR THE COMPENSATION OF ANY PERSON
APPOINTED--,
(1) AS FULL-TIME EMPLOYEE TO A PERMANENT, AUTHORIZED POSITION
IN THE GOVERNMENT OF THE DISTRICT OF COLUMBIA DURING ANY MONTH
WHEN THE NUMBER OF SUCH EMPLOYEES IS GREATER THAN 39,619; OR
(2) AS A TEMPORARY OR PART-TIME EMPLOYEE IN THE GOVERNMENT OF
THE DISTRICT OF COLUMBIA DURING ANY MONTH IN WHICH THE NUMBER OF
SUCH EMPLOYEES EXCEEDS THE NUMBER OF SUCH EMPLOYEES FOR THE SAME
MONTH OF THE PRECEDING FISCAL YEAR.
SEC. 14. NO FUNDS APPROPRIATED HEREIN FOR THE GOVERNMENT OF THE
DISTRICT OF COLUMBIA FOR THE OPERATION OF EDUCATIONAL INSTITUTIONS, THE
COMPENSATION OF PERSONNEL, OR FOR OTHER EDUCATION PURPOSES MAY BE USED
TO PERMIT, ENCOURAGE, FACILITATE, OR FURTHER PARTISIAN POLITICAL
ACTIVITIES. NOTHER HEREIN IS INTENDED TO PROHIBIT THE AVAILABILITY OF
SCHOOL BUILDINGS FOR THE USE OF ANY COMMUNITY GROUP DURING NONSCHOOL
HOURS.
SEC. 15. APPROPRIATIONS IN THIS ACT SHALL BE AVAILABLE FOR SERVICES
AS AUTHORIZED BY 5 U.S.C. 3109, //80 STAT. 416.// AT RATES TO BE FIXED
BY THE COMMISSIONER.
SEC. 16. NO PART OF ANY APPROPRIATION CONTAINED IN THIS ACT SHALL BE
ABAILABLE FOR PAYING TO THE ADMINISTRATOR OF THE GENERAL SERVICES
ADMINISTRATION IN EXCESS OF 90 PER CENTUM OF THE STANDARD LEVEL USER
CHARGE ESTABLISHED PURSUANT TO SECTION 210(J) OF THE FEDERAL PROPERTY
AND ADMINISTRATIVE SERVICES ACT OF 1949, AS AMENDED, // 89 STAT. 219, 40
USC 490.// FOR SPACE AND SERVICES.
THIS ACT MAY BE CITED AS THE "DISTRICT OF COLUMBIA APPROPRIATION ACT,
1975".
LEGISLATIVE HISTORY:
HOUSE REPROTS: NO. 93 - 1141 (COMM. ON APPROPRIATIONS) AND NO. 93 -
1291 (COMM. OF CONFERENCE).
SENATE REPORT NO. 93 - 1057 (COMM. ON APPROPRIATIONS).
CONGRESSIONAL RECORD, VOL. 120 (1974):
JUNE 28, CONSIDERED AND PASSED HOUSE.
AGU. 8, CONSIDERED AND PASSED SENATE, AMENDED.
AUG. 20, HOUSE AND SENATE AGREED TO CONFERENCE REPORT.
PUBLIC LAW 93-404, 88 STAT 803, DEPARTMENT OF THE INTERIOR AND
RELATED AGENCIES APPROPRIATION ACT, 1975.
BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE
UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT THE FOLLOWING SUMS
ARE APPROPRIATED, OUT OF ANY MONEY IN THE TREASURY NOT OTHERWISE
APPROPRIATED, FOR THE DEPARTMENT OF THE INTERIOR AND RELATED AGENCIES
FOR THE FISCAL YEAR ENDING JUNE 30, 1975, AND FOR OTHER PURPOSES,
NAMELY:
BUREAU OF LAND MANAGEMENT
MANAGEMENT OF LANDS AND RESOURCES
FOR EXPENSES NECESSARY FOR PROTECTION, USE, IMPROVEMENT, DEVELOPMENT,
DISPOSAL, CADASTRAL SERVEYING, CLASSIFICATION, AND PERFORMANCE OF OTHER
FUNCTIONS, AS AUTHORIZED BY LAW, IN THE MANAGEMENT OF LANDS AND THEIR
RESOURCES UNDER THE JURISDICTION OF THE BUREAU OF LAND MANAGEMENT,
$141,096,000.
CONSTRUCTION AND MAINTENANCE
FOR ACQUISITION, CONSTRUCTION AND MAINTENANCE OF BUILDINGS,
APPURTENANT FACILITIES, AND OTHER IMPROVEMENTS, AND MAINTENANCE OF
ACCESS ROADS, $6,725,000, TO REMAIN AVAILABLE UNTIL EXPENDED.
PUBLIC LANDS DEVELOPMENT ROADS AND TRAILS (LIQUIDATION OF
CONTRACT AUTHORITY)
FOR LIQUIDATION OF OBLIGATIONS INCURRED PURSUANT TO AUTHORITY
CONTAINED IN TITLE 23, UNITED STATES CODE, //72 STAT. 906; 76 STAT.
1147.// SECTION 203,$4,070,000, TO REMAIN AVAILABLE UNTIL EXPENDED.
OREGON AND CALIFORNIA GRANT LANDS
FOR EXPENSES NECESSARY FOR MANAGEMENT, PROTECTION, AND DEVELOPMENT OF
RESOURCES AND FOR CONSTRUCTION, OPERATION, AND MAINTENANCE OF ACCESS
ROADS, REFORESTATION, AND OTHER IMPROVEMENTS ON THE REVESTED OREGON AND
CALIFORNIA RAILROAD GRANT LANDS, ON OTHER FEDERAL LANDS IN THE OREGON
AND CALIFORNIA LAND-GRANT COUNTIES OF OREGON, AND ON ADJACENT
RIGHTS-OF-WAY; AND ACQUISITION OF RIGHTS-OF-WAY AND OF EXISTING
CONNECTING ROADS ON OR ADJACENT TO SUCH LANDS; AN AMOUNT EQUIVALENT TO
25 PER CENTUM OF THE AGGREGATE OF ALL RECEIPTS DURING THE CURRENT FISCAL
YEAR FROM THE REVESTED OREGON AND CALIFORNIA RAILROAD GRANT LANDS, TO
REMAIN AVAILALBE UNTIL EXPENDED: PROVIDED, THAT THE AMOUNT APPROPRIATED
HEREIN FOR THE PURPOSES OF THIS APPROPRAITION ON LANDS ADMINISTERED BY
THE FOREST SERVICE SHALL BE TRANSFERRED TO THE FOREST SERVICE,
DEPARTMENT OF AGRICULTURE: PROVIDED FURTHER, THAT THE AMOUNT
APPROPRIATED HEREIN FOR ROAD CONSTRUCTION ON LANDS OTHER THAN THOSE
ADMINISTERED BY THE FOREST SERVICE SHALL BE TRANSFERRED TO THE FEDERAL
HIGHWAY ADMINISTRATION, DEPARTMENT OF TRANSPORTATION: PROVIDED FURTHER,
THAT THE AMOUNT APPROPRIATED HEREIN IS HEREBY MADE A REIMBURSABLE CHARGE
AGAINST THE OREGON AND CALIFORNAI LAND GRANT FUND AND SHALL BE
REIMBURSED TO THE GENERAL FUND IN THE TREASURY IN ACCORDANCE WITH THE
PROVISIONS OF THE SECOND PARAGRAPH OF SUBSECTION (B) OF TITLE II OF THE
ACT OF AUGUST 28, 1937 (50 STAT. 876). //43 USC 1181F.//
RANGE IMPROVEMENTS
FOR CONSTRUCTION, PURCHASE, AND MAINTENANCE OF RANGE IMPROVEMENTS
PURSUANT TO THE PROVISIONS OF SECTION 3 AND 10 OF THE ACT OF JUNE 28,
1934, AS AMENDED (43 U.S.C. 315), //48 STAT. 1270; 61 STAT. 790, 43 USC
315B, 315I.// SUMS EQUAL TO THE AGGREGATE OF ALL MONEYS RECIEVED, DURING
THE CURRENT FISCAL YEAR, AS RANGE IMPROVEMENTS FEES UNDER SECTION 3 OF
SAID ACT, 25 PER CENTUM OF ALL MONEYS RECIEVED, DURING THE CURRENT
FISCAL YEAR, UNDER SECTION 15 OF SAID ACT, AND THE AMOUNT DESIGNATED FOR
RANGE IMPROVEMENTS FROM GRAZING FEES FROM BANKHEAD-JONES LANDS
TRANSFERRED TO THE DEPARTMENT OF THE INTERIOR PURSUANT TO LAW, TO REMAIN
AVAILABLE UNTIL EXPENDED. //49 STAT. 1978; 68 STAT. 151, 43 USC
315M.//
RECREATION DEVELOPMENT AND OPERATION OF RECREATION FACILITIES
FOR CONSTRUCTION, OPERATION, AND MAINTENANCE OF OUTDOOR RECREATION
FACILITIES, INCLUDING COLLECTION OF SPECIAL RECREATION USE FEES, TO
REMAIN AVAILABLE UNTIL EXPENDED, $242,000, TO BE DERIVED FROM THE
SPECIAL RECEIPT ACCOUNTS ESTABLISHED BY SECTION 1 (B) OF THE ACT OF JULY
15, 1968 (82 STAT. 354), //16 USC 4601 - 5 NOTE.// AND SECTION 4( E) OF
THE ACT OF JULY 11, 1972 (86 STAT. 461): //16 USC 4601 - 6A.//
PROVIDED, THAT NOT MORE THAN 40 PER CENTUM OF THE AMOUNT CREDITED
PURSUANT TO SECTION 4(E) OF THE ACT OF JULY 11, 1972, SHALL BE AVAILABLE
FOR THE ENHANCEMENT OF THE FEE COLLECTION SYSTEM ESTABLISHED BY SECTION
4 OF SUCH ACT, INCLUDING THE PROMOTION AND ENFORCEMENT THEREOF.
ADMINISTRATIVE PROVISIONS
APPROPRIATIONS FOR THE BUREAU OF LAND MANAGEMENT SHALL BE AVAILABLE
FOR ACQUISITION OF TWO NEW AIRCRAFT FOR REPLACEMENT ONLY; PURCHASE,
ERECTION, AND DISMANTLEMENT OF TEMPORARY STRUCTURES; AND ALTERATION AND
MAINTENANCE OF NECESSARY BUILDINGS AND APPURTENANT FACILITIES TO WHICH
THE UNITED STATES HAS TITLE: PROVIDED, THAT OF APPROPRIATIONS HEREIN
MADE FOR THE BUREAU OF LAND MANAGEMENT EXPENDITURES IN CONNECTION WITH
REVESTED OREGON AND CALIFORNIA RAILROAD AND RECONVEYED COOS BAY WAGON
ROAD GRANT LANDS (OTHER THAN EXPENDITURES MADE UNDER THE APPROPRATION
"OREGON AND CALIFORNAI GRANT LANDS") SHALL BE REIMBURSED TO THE GENERAL
FUND OF THE TREASURY FROM THE 25 PER CENTUM REFERRED TO IN SUBSECTION
(C), TITLE II, OF THE ACT APPROVED AUGUST 28, 1937 (50 STAT. 876), OF
THE SPECIAL FUND DESIGNATED THE "OREGON AND CALIFORNIA LAND GRANT FUND"
AND SECTION 4 OF THE ACT APPROVED MAY 24, 1939 (53 STAT. 754), OF THE
SPECIAL FUND DESIGNATED THE COOS BAY WAGON ROAD GRANT FUND": PROVIDED
FURTHER, THAT APPROPRIATIONS HEREIN MADE MAY BE EXPENDED ON A
REIMBURSABLE BASIS FOR (1) SURVEYS OF LANDS OTHER THAN THOSE UNDER THE
JURISDICTION OF THE BUREAU OF LAND MANAGEMENT AND (2) PROTECTION AND
LEASING OF LANDS AND MINERAL RESOURCES FOR THE STATE OF ALASKA.
OFFICE OF WATER RESOURCES RESEARCH
SALARIES AND EXPENSES
FOR EXPENSES NECESSARY IN CARRYING OUT THE PROVISIONS OF THE WATER
RESOURCES RESEARCH ACT OF 1964, AS AMENDED (42 U.S.C. 1961 - 1961C-7),
//78 STAT. 329; 85 STAT. 493, 42 USC 1961 NOTE.// $13,885,000, OF WHICH
NOT TO EXCEED $1,045,000 SHALL BE AVAILABLE FOR ADMINISTRATIVE EXPENSES.
OFFICE OF SALINE WATER
SALINE WATER CONVERSION
FOR EXPENSES NECESSARY TO CARRY OUT THE PROVISIONS OF THE SALINE
WATER CONVERSION ACT OF 1971 (42 U.S.C. 1959 - 1959H, AS AMENDED), //85
STAT. 159.// INCLUDING NOT TO EXCEED $1,043,000 FOR ADMINISTRATION AND
COORDINATION EXPENSES DURING THE CURRENT FISCAL YEAR, $3,007,000, TO
REMAIN AVAILABLE UNTIL EXPENDED.
BUREAU OF OUTDOOR RECREATION
SALARIES AND EXPENSES
FOR NECESSARY EXPENSES OF THE BUREAU OF OUTDOOR RECREATION, NOT
OTHERWISE PROVIDED FOR, $5,210,000.
LAND AND WATER CONSERVATION FUND
FOR EXPENSES NECESSARY TO CARRY OUT THE PROVISIONS OF THE LAND AND
WATER CONSERVATION FUND ACT OF 1956 AS AMENDED (16 U.S.C., 4601 - 4 - 11
AS SUPPLEMENTED BY PUBLIC LAW 93 - 81), //78 STAT. 897; 86 STAT. 459;
87 STAT. 178.// INCLUDING $6,400,000 FOR ADMINISTRATIVE EXPENSES OF THE
BUREAU OF OUTDOOR RECREATION DURING THE CURRENT FISCAL YEAR, AND
ACQUISITION OF LAND OR WATERS, OR INTEREST THEREIN, IN ACCORDANCE WITH
THE STATUTORY AUTHORITY APPLICABLE TO THE STATE OR FEDERAL AGENCY
CONCERNED, TO BE DERIVED FORM THE LAND AND WATER CONSERVATION FUND,
ESTABLISHED BY SECTION 2 OF SAID ACT AS AMENDED, //82 STAT. 355; 84
STAT. 1084, 16 USC 4601 - 5.// TO REMAIN AVAILABLE UNTIL EXPENDED, NOT
TO EXCEED $300,000,000, TO WHICH (1) NOT TO EXCEED $180,000,000 SHALL BE
AVAILABLE FOR PAYMENTS TO THE STATES IN ACCORDANCE WITH SECTION 6(C) OF
SAID ACT; //16 USC 4601 - 9.// (2) NOT TO EXCEED $72,700,000 SHALL BE
AVAILABLE TO THE NATIONAL PARK SERVICE; (3) NOT TO EXCEED $30,900,000
SHALL BE AVAILABLE TO THE FOREST SERVICE; (4) NOT TO EXCEED $9,500,000
SHALL BE AVAILABLE TO THE UNITED STATES FISH AND WILDLIFE SERVICE; AND
(5) NOT TO EXCEED $500,000 SHALL BE AVAILABLE TO THE BUREAU OF LAND
MANAGEMENT.
RESOURCE MANAGEMENT
FOR EXPENSES NECESSARY FOR SCIETIFIC AND ECONOMIC STUDIES,
CONSERVATION, MANAGEMENT, INVESTIGATION, PROTECTION, AND UTILIZATION OF
SPORT FISHERY AND WILDLIFE RESOURCES, EXCEPT WHALES, SEALS, AND SEA
LIONS, AND FOR THE PERFORMANCE OF OTHER AUTHORIZED FUNCTIONS RELATED TO
SUCH RESOURCES; AND MAINTENANCE OF THE HERD OF LAONG-HORNED CATTLE ON
THE WICHITA MOUNTAINS WILDLIFE REFUGE, $101,126,000.
CONSTRUCTION AND ANADROMOUS FISH
FOR CONSTRUCTION AND ACQUISITION OF BUILDINGS AND OTHER FACILITIES
REQUIRED IN THE CONSERVATION, MANAGEMENT, INVESTIGATIONS, PROTECTION,
AND UTILIZATION OF SPORT FISHERY AND WILDLIFE RESOURCES, AND THE
ACQUISITION OF LANDS AND INTERESTS THEREIN; AND FOR EXPENSES NECESSARY
TO CARRY OUT THE ANADROMOUS FISH CONSERVATION ACT (16 U.S.C. 757 -
757F); //79 STAT. 1125.// $14,047,000, TO REMAIN AVAILABLE UNTIL
EXPENDED.
MIGRATORY BIRD CONSERVATION ACCOUNT
FOR AN ADVANCE TO THE MIGRATORY BIRD CONSERVATION ACCOUNT, AS
AUTHORIZED BY THE ACT OF OCTOBER 4, 1971, AS AMENDED (16 U.S.C., 715K -
ADMINISTRATIVE PROVISIONS
APPROPRIATIONS AND FUNDS AVAILABLE TO THE UNITED STATES FISH AND
WILDLIFE SERVICE SHALL BE AVAILABLE FOR PURCHSE OF NOT TO EXCEED ONE
HUNDRED AND SIXTY-SIX PASSENGER MOTOR VEHICLES, OF WHICH ONE HUNDRED AND
SIXTEEN ARE FOR REPLACEMENT ONLY (INCLUDING SIXTY FOR POLICE-TYPE USE);
PURCHASE OF NOT TO EXCEED THREE AIRCRAFT, FOR REPLACEMENT ONLY; NOT TO
EXCEED $50,000 FOR PAYMENT, IN THE DISCRETION OF THE SECRETARY, FOR
INFORMATION OR ECIDENCE CONCERNING VIOLATIONS OF LAWS ADMINISTRATED BY
THE UNITED STATES FISH AND WILDLIFE SERVICE; MISCELLANEOUS AND
EMERGENCY EXPENSES OF ENFORCEMENT ACTIVITIES, AUTHORIZED OR APPROVED BY
THE SECRETARY AND TO BE ACCOUNTED FOR SOLELY ON HIS CERTIFICATE, NOT TO
EXCEED $40,000; PUBLICATION AND DISTRIBUTION OF BULLETINS AS AUTHORIZED
BY LAW (7 U.S.C. 417); //34 STAT. 690.// RATIONS OR COMMUTATION OF
RATIONS FOR OFFICERS AND CREWS OF VESSELS AT RATES NOT TO EXCEED $6.50
PER MAN PER DAY; INSURANCE ON OFFICIAL MOTOR VEHICLES, AIRCRAFT AND
BOATS OPERATED BY THE UNITED STATES FISH AND WILDLIFE SERVICE IN FOREIGN
COUNTRIES; REPAIR OF DAMAGE TO PUBLIC RAODS WITHIN AND ADJACENT TO
RESERVATION AREAS CAUSED BY OPERATIONS OF THE UNITED STATES FISH AND
WILDLIFE SERVICE; OPTIONS FOR THE PURCHASE OF LAND AT NOT TO EXCEED $1
FOR EACH OPTION; FACILITIES INCIDENT TO SUCH PUBLIC RECREATIONAL USES
ON CONSERVATION AREAS AS ARE NOT INCONSISTENT WITH THEIR PRIMARY
PURPOSE, AND THE MAINTENANCE AND IMPROVEMENT OF AQUARIA, BUILDINGS AND
OTHER FACILITIES UNDER THE JURISDICTION OF THE UNITED STATES FUSH AND
WILDLIFE SERVICE AND TO WHICH THE UNITED STATES HAS TITLE, AND WHICH ARE
UTILIZED PURSUANT TO LAW IN CONNECTION WITH MANAGEMENT AND INVESTIGATION
OF FISH AND WILDLIFE RESOURCES.
OPERATION OF THE NATIONAL PARK SYSTEM
FOR EXPENSES NECESSARY FOR THE MANAGEMENT, OPERATION, AND MAINTENANCE
OF AREAS AND FACILITIES ADMINISTERED BY THE NATIONAL PARK SERVICE
(INCLUDING SPECIAL ROAD MAINTENANCE SERVICE TO TRUCKING PERMITTEES ON A
REIMBURSABLE BASIS), $209,325,000.
PLANNING AND CONSTRUCTION
FOR CONSTRUCTION, IMPROVEMENTS, REPAIR OR REPLACEMENT OF PHYSICAL
FACILITIES, WITHOUT REGARD TO THE ACT OF AUGUST 24, 1912, AS AMENDED (16
U.S.C. 451); //37 STAT. 460; 54 STAT. 36.// THE ACQUISITION OF WATER
RIGHTS; EXPENSES NECESSARY FOR INVESTIGATIONS AND STUDIES TO DETERMINE
SUITABILITY OF AREAS TO BE INCLUDED IN THE NATIONAL PARK SYSTEM, THE
DESIGNATION OF WILDERNESS AREAS, AND THE MANAGEMENT OF WATER RESOURCES;
THE PREPARATION OF PLANS FOR EXISTING AND PROPOSED PARK AND RECREATION
AREAS; PROVISIONS OF TECHNICAL ASSISTANCE TO OTHER FEDERAL AGENCIES,
AND TO STATES AND PRIVATE INSTITUTIONS IN THE PLANNING, DEVELOPMENT, AND
OPERATION OF LANDMARKS, PARKS AND RECREATION AREAS; AND FOR FINANCIAL
OR OTHER ASSISTANCE IN PLANNING, DEVELOPMENT, OR OPERATION OF AREAS AS
AUTHORIZED BY LAW OR PURSUANT TO AGREEMENTS WITH OTHER FEDERAL AGENCIES,
STATES, OR PRIVATE INSTITUTIONS, INCLUDING NOT TO EXCEED $196,300 FOR
THE ROOSEVELT CAMPLBELLO INTERNATIONAL PARK COMMISSION, $58,112,000, TO
REMAIN AVAILABLE UNTIL EXPENDED.
ROAD CONSTRUCTION (LIQUIDATION OF CONTRACT AUTHORITY)
FOR LIQUIDATION OF OBLIGATIONS INCURRED PURSUANT TO AUTHORITY
CONTAINED IN TITLE 23, UNITED STATES CODE, SECTION 203, //72 STAT. 906;
76 STAT. 1147.// $26,026,000, TO REMAIN AVAILABLE UNTIL EXPENDED:
PROVIDED, THAT NONE OF THE FUNDS HEREIN PROVIDED SHALL BE EXPENDED FOR
PLANNING OR CONSTRUCTION ON THE FOLLOWING: FORT WASHINGTON AND
GREENBELT PARK, MARYLAND, AND GREAT FALLS PARK, VIRGINIA, EXCEPT MINOR
ROADS AND TRAILS; AND DAINGERFIELD ISLAND MARINA, BIRGINIA, AND
EXTENSION OF THE GEORGE WASHINGTON MEMORIAL PARKWAY FROM THE VICINITY OF
BRICKYARD ROAD TO GREAT FALLS, MARYLAND, OR IN PRINCE GEORGES COUNTY,
MARYLAND.
PRESERVATION OF HISTORIC PROPERTIES
FOR EXPENSES NECESSARY IN CARRYING OUT A PROGRAM FOR THE PRESERVATION
OF ADDITIONAL HISTORIC PROPERTIES THROUGHOUT THE NATION, AS AUTHORIZED
BY LAW (16 U.S.C. 461 - 467, 470), //49 STAT. 666; 79 STAT. 971; 80
STAT. 915.// AND INVESTIGATIONS, STUDIES, AND SALVAGE OF ARCHEOLOGICAL
BALUES, $24,375,000, TO REMAIN AVAILABLE UNTIL EXPENDED.
PLANNING, DEVELOPMENT AND OPERATION OF RECREATION FACILITIES
FOR CONSTRUCTION, OPERATION, AND MAINTENANCE OF OUTDOOR RECREATION
FACILITIES, WITHOUT REGARD TO THE ACT OF AUGUST 24, 1912, AS AMENDED (16
U.S.C. 451); //37 STAT. 460; 54 STAT. 36.// INCLUDING COLLECTION OF
SPECIAL RECREATION USE FEES, TO REMAIN ABAILABLE UNTIL EXPENDED,
$11,900,000, TO BE DERIVED FORM THE SPECIAL RECEIPT ACCOUNTS ESTABLISHED
BY SECTION 1(B) OF THE ACT OF JULY 15, 1968 (82 STAT. 354), //16 USC
4601 - 5 NOTE.// PROVIDED, THAT NOT MORE THAN 40 PER CENTUM OF THE
AMOUNT CREDITED PURSUANT TO SECTION 4(E) OF THE ACT OF JULY 11, 1972,
SHALL BE AVAILABLE FOR THE ENHANCEMENT OF THE FEE COLLECTION SYSTEM
ESTABLISHED BY SECTION 4 OF SUCH ACT, INCLUDING THE PROMOTION AND
ENFORCEMENT THEREOF.
JOHN F. KENNEDY CENTER FOR THE PERFORMING ARTS
FOR EXPENSES NECESSARY FOR OPERATING AND MAINTAINING THE
NONPERFORMING ARTS FUNCTIONS OF THE JOHN F. KENNEDY CENTER FOR THE
PERFORMING ARTS, $2,420,000.
ADMINISTRATIVE PROVISIONS
APPROPRIATIONS FOR THE NATIONAL PARK SERVICE SHALL BE AVAILABLE FOR
THE PURCHASE OF NOT TO EXCEED ONE HUNDRED SIXTY-SEVEN PASSENGER MOTOR
VEHICLES, OF WHICH ONE HUNDRED TWELVE SHALL BE FOR REPLACEMENT ONLY,
INCLUDING NOT TO EXCEED ONE HUNDRED FOUR FOR POLICE-TYPE USE;A PURCHASE
OF FOUR AIRCRAFT (INCLUDING TWO FOR REPLACEMENT ONLY); AND TO PROVIDE,
NOTWITHSTANDING ANY OTHER PROVISION OF LAW, AT A COST NOT EXCEEDING
$100,000, TRANSPORTATION FOR CHILDREN IN NEARBY COMMUNITIES TO AND FROM
ANY UNIT OF THE NATIONAL PARK SYSTEM USED IN CONNECTION WITH ORGANIZED
RECREATION AND INTERPRETIVE PROGRAMS OF THE NATIONAL PARK SERVICE:
PROVIDED, THAT ANY FUNDS AVAILABLE TO THE NATIONAL PARK SERVICE MAY BE
USED, WITH THE APPROVAL OF THE SECRETARY, TO MAINTAIN LAW AND ORDER IN
EMERGENCY AND OTHER UNFORESEEN LAW ENFORCEMENT SITUATIONS IN THE
NATIONAL PARK SYSTEM.
GEOLOGICAL SURVEY
SURVEYS, INVESTIGATIONS, AND RESEARCH
FOR EXPENSES NECESSARY FOR THE GIOLOGICAL SURVEY TO PERFORM SURVEYS,
INVESTIGATIONS, AND RESEARCH COVERING TOPOGRAPHY, GEOLOGY, AND THE
MONERAL AND WATER RESOURCES OF THE UNITED STATES, ITS TERRITORIES AND
POSSESSIONS, AND OTHER AREAS AS AUTHORIZED BY LAW (72 STAT. 837 AND 76
STAT. 429); //43 USC 1457 NOTE, 31.// CLASSIFY LANDS AS TO MINERAL
CHARACTER AND WATER AND POWER RESOURCES; GIVE ENGINEERING SUPERVISION
TO POWER PERMITS AND FEDERAL POWER COMMISSION LICENSES; ENFORCE
DEPARTMENTAL REGULATIONS APPLICABLE TO OIL, GAS, AND OTHER MINING
LEASES, PERMITS, LICENSES, AND OPERATING CONTRACTS; CONTROL THE
INTERSTATE SHIPMENT OF CONTRABAND OIL AS REQUIRED BY LAW (15 U.S.C.
715); //49 STAT. 30.// ADMINISTER THE MINERALS EXPLORATION PROGRAM (30
U.S.C. 641); //72 STAT. 700.// AND PUBLISH AND DISSEMINATE DATA
RELATIVE TO THE FOREGOING ACTIVITIES; $203,575,000, OF WHICH
$26,015,000 SHALL BE AVAILABLE ONLY FOR COOPERATION WITH STATES OR
MUNICIPALITIES FOR WATER RESOURCES INVESTIGATIONS: //43 USC 50.//
PROVIDED, THAT NO PART OF THIS APPROPRIATION SHALL BE USED TO PAY MORE
THAN ONE-HALF THE COST OF ANY TOPOGRAPHIC MAPPING OR WATER RESOURCES
INVESTIGATIONS CARRIED ON IN COOPERATION WITH ANY STATE OR MUNICIPALITY:
PROVIDED FURTHER, THAT THE AMOUNT APPROPRIATED FOR "SURVEYS,
INVESTIGATIONS, AND RESEARCH" IN THE SPECIAL ENERGY RESEARCH AND
DEVELOPMENT APPROPRIATION ACT, 1975, //ANTE, P. 276.// SHALL BE MERGED,
WITHOUT LIMITATION, WITH THIS APPROPRIATION.
ADMINISTRATIVE PROVISIONS
THE AMOUNT APPROPRIATED FOR THE GEOLOGICAL SURVEY SHALL BE AVAILABLE
FOR PURCHASE OF NOT TO EXCEED THIRTY-TWO PASSENGER MOTOR VEHICLES, FOR
REPLACEMENT ONLY; REIMBURSEMENT TO THE GENERAL SERVICES ADMINISTRATION
FOR SECURITY GUARD SERVICES, CONTRACTING FOR THE FURNISHING OF
TOPOGRAPHIC MAPS AND FOR THE MAKING OF GEOPHYSICAL OR OTHER SPECIALIZED
SURVEYS WHEN IT IS ADMINISTRATIVELY DETERMINED THAT SUCH PROCEDURES ARE
IN THE PUBLIC INTEREST; CONSTRUCTION AND MAINTENANCE OF NECESSARY
BUILDINGS AND APPURTENANT FACILITIES; ACQUISITION OF LANDS FOR GAGING
STATIONS AND OBSERVATION WELLS; EXPENSES OF THE U.S., NATIONAL
COMMITTEE ON GEOLOGY; PAYMENT OF CONTRIBUTIONS TO THE INTERNATIONAL
FEDERATION OF SURVEYORS; AND PAYMENT OF COMPENSATION AND EXPENSES OF
PERSONS ON THE ROLLS OF THE GEOLOGICAL SERVEY APPOINTED, AS AUTHORIZED
BY LAW, TO REPRESENT THE UNITED STATES IN THE NEGOTIATION AND
ADMINISTRATION OF INTERSTATE COMPACTS.
SALARIES AND EXPENSES
FOR EXPENSES NECESSARY TO PROMOTE HEALTH AND SAFETY IN MINES AND IN
THE MINERALS INDUSTRY THROUGH DEVELOPMENT, PROMULGATION AND ENFORCEMENT
OF REGULATIONS, INCLUDING MINE INSPECTIONS, TECHNICAL SUPPORT, AND
EDUCATION AND TRAINING AS AUTHORIZED BY LAW, $67,913,000, OF WHICH NOT
TO EXCEED $1,000,000 SHALL REMAIN ABAILABLE UNTIL EXPENDED: PROVIDED,
THAT NO PART OF THE FUNDS APPROPRIATED BY THIS ACT SHALL BE USED TO PAY
ANY PUBLIC RELATIONS FIRM FOR ANY PROMOTIONAL CAMPAIGNS AMONG COAL
MINERS.
ADMINISTRATIVE PROVISIONS
APPROPRIATIONS AND FUNDS AVAILABLE TO THE MINING ENFORCEMENT AND
SAFETY ADMINISTRATION MAY BE EXPENDED FOR PURCHASE AND BESTOWAL OF
CERTIFICATES AND TROPHIES IN CONNECTION WITH MINE RESCUE AND FIRST-AID
WORK: PROVIDED, THAT THE SECRETARY IS AUTHORIZED TO ACCEPT LANDS,
BUILDINGS, EQUIPMENT, AND OTHER CONTRIBUTIONS FROM PUBLIC AND PRIVATE
SOURCES AND TO PROSECUTE PROJECTS IN COOPERATION WITH OTHER AGENCIES,
FEDERAL, STATE, OR PRIVATE: PROVIDED FURTHER, THAT THE MINING
ENFORCEMENT AND SAFETY ADMINISTRATION IS AUTHORIZED TO PROMOTE HEALTH
AND SAFETY EDUCATION AND TRAINING IN THE MINING COMMUNITY THROUGH
COOPERATICE PROGRAMS WITH STATES, INDUSTRY, AND SAFETY ASSOCIATIONS:
PROVIDED FURTHER, THAT ANY FUNDS AVAILABLE TO THE DEPARTMENT MAY BE
USED, WITH THE APPROVAL OF THE SECRETARY, TO PROVIDE FOR THE COSTS OF
MINE RESCUE AND SURVIVAL OPERATIONS IN THE EVENT OF MAJOR MINE
DISASTERS.
BURIAU OF MINES
MINES AND MINERALS
FOR EXPENSES NECESSARY FOR CONDUCTING INQUIRIES, TECHNOLOGICAL
INVESTIGATIONS AND RESEARCH CONCERNING THE EXTRACTION, PROCESSING, USE
AND DISPOSAL OF MINERAL SUBSTANCES WITHOUT OBJECTIONABLE SOCIAL AND
ENVIRONMENTAL COSTS; TO FOSTER AND ENCOURAGE PRIVATE ENTERPRISE IN THE
DEVELOPMENT OF MINERAL RESOURCES AND THE PREVENTION OF WASTE IN THE
MINING, MINERALS, METAL AND MINERAL RECLAMATION INDUSTRIES; TO PROMOTE
HEALTH AND SAFETY IN MINES AND THE MINERAL INDUSTRY THROUGH RESEARCH;
AND FOR OTHER RELATED PURPOSES AS AUTHOTIZED BY LAW; $77,863,000, OF
WHICH $27,691,000 SHALL REMAIN AVAILABLE UNTIL EXPENDED: PROVIDED, THAT
THE AMOUNT APPROPRIATED FOR "MINES AND MINERALS" IN THE SPECIAL ENERGY
RESEARCH AND DEVELOPMENT APPRORIATION ACT, 1975, //ANTE, P. 276.//
SHALL BE MERGED, WITHOUT LIMITATION, WITH THIS APPROPRIATION.
ADMINISTRATIVE PROVISIOS
THE SECRETARY IS AUTHORIZED TO ACCEPT LANDS, BUILDINGS, EQUIPMENT,
AND OTHER CONTRIBUTIONS FROM PUBLIC AND PRIVATE SOURCES AND TO PROSECUTE
PROJECTS IN COOPERATION WITH OTHER AGENCEIS, FEDERAL, STATE, OR PRIVATE:
PROVIDED, THAT THE BUREAU OF MINES IS AUTHORIZED DURING THE CURRECT
FISCAL YEAR, TO SELL DIRECTLY OR THROUGH ANY GOVERNMENT AGENCY,
INCLUDING CORPORATIONS, ANY METAL OR MINERAL PRODUCT THAT MAY BE
MANUFACTURED IN PILOT PLANTS OPERATED BY THE BUREAU OF MINES, AND THE
PROCEEDS OF SUCH SALES SHALL BE COVERED INTO THE TREASURY AS
MISCELLANEOUS RECEIPTS.
BUREAU OF INDIAN AFFAIRS
OPERATION OF INDIAN PROGRAMS
FOR EXPENSES NECESSARY TO PROVIDE EDUCATION AND WILFARE SERVICES FOR
INDIANS, EITHER DIRECTLY OR IN COOPERATION WITH STATES AND OTHE
ORGANIZATIONS, INCLUDING PAYMENT (IN ADVANCE OR FROM DATE OF ADMISSION),
OF CARE, TUITION, ASSISTANCE, AND OTHER EXPENSES OF INDIANS IN BOARDING
HOMES, INSTITUTIONS, OR SCHOOLS; GRANTS AND OTHER ASSISTANCE TO NEEDY
INDIANS; MAINTENANCE OF LAW AND ORDER, AND PAYMENT OF REWARDS FOR
INFORMATION OR EVIDENCE CONCERNING BIOLATIONS OF LAW ON INDIAN
RESERVATIONS LAMDS, OR TREATY FISHING RIGHTS TRIBAL USE AREAS;
MANAGEMENT, DEVELOPMENT, INPROVEMENT, AND PROTECTION OF RESOURCES AND
APPURTENANT FACILITIES UNDER THE JURISDICTION OF THE BUREAU OF INDIAN
AFFAIRS, INCLUDING PAYMENT OF IRRIGATION ASSESSMENTS AND CHARGES;
ACQUISITION OF WATER RIGHTS; ADVANCES FOR INDIAN INDUSTRIAL AND
BUSINESS ENTERPRISES; OPERATION OF INDIAN ARTS AND CRAFTS SHOPS AND
MUSEUMS; DEVELOPMENT OF INDIAN ARTS AND CRAFTS, AS AUTHORIZED BY LAW;
AND FOR THE GENERAL ADMINISTRATION OF THE BURIAU OF INDIAN AFFAIRS,
INCLUDING SUCH EXPENSES IN FIELD OFFICES, $467,000,000: PROVIDED, THAT
$470,000 SHALL BE AVAILABLE TO ASSIST THE PYRAMID LAKE PAIUTE TRIBE OF
INDIANS IN THE OPERATION AND MAINTENANCE OF FACILITIES FOR THE
RESTORATION OF THE PYRAMID LAKE FISHERY PURSUANT TO THE WASHOE ACT (43
U.S.C. 614). //70 STAT. 775.//
CONSTRUCTION
FOR CONSTUCTION, MAJOR REPAIR AND IMPROVEMENT OF IRRIGATION AND POWER
SYSTEMS, BUILDINGS, UTILITIES, AND OTHER FACILITIES; ACQUISITION OF
LANDS AND INTERESTS IN LAMDS; PREPARATION OF LANDS FOR FARMING; AND
ARCHITECTURAL AND ENGINEERING SERVICES BY CONTRACT, $61,804,000, TO
REMAIN AVAILABLE UNTIL EXPENDED: PROVIDED, THAT NO PART OF THE SUM
HEREIN APPROPRIATED SHALL BE USED FOR THE ACQUISITION OF LAND WITHIN THE
STATES OF ARIZONA, CALIFORNIA, COLORADO, NEW MEXICO, SOUTH DAKOTA, AND
UTAH OUTSIDE OF THE BOUNDARIES OF EXISTING INDIAN RESERVATIONS EXCEPT
LANDS AUTHORIZED BY LAW TO BE ACQUIRED FOR THE JAVAJO INDIAN IRRIGATION
PROJECT: PROVIDED FURTHER, THAT NO PART OF THIS APPROPRIATION SHALL BE
USED FOR THE ACQUISITION OF LAND OR WATER RIGHTS WITHIN THE STATES OF
NEVADE, OREGON, AND WASHINGTON EITHER INSIDE OR OUTSIDE THE BOUNDARIES
OF EXISTING RESERVATIONS EXCEPT SUCH LANDS AS MAY BE REQUIRED FOR
REPLACEMENT OF THE WILD HORSE DAM IN THE STATE OF NEVADA: PROVIDED
FURTHER, THAT SUCH AMOUNTS AS MAY BE MAY BE TRANSFERRED TO THE BUREAU OF
RECLAMATION: PROVIDED FURTHER, THAT THE UNOBLIGTED BALANCE OF
$10,300,000 PREVIOUSLY APPROPRIATED FOR MT. EDGECUMBE SCHOOL AND FOUR
REGIONAL DORMITORIES IN ALASKA SHALL BE MADE AVAILABLE FOR THE
CONSTRUCTION OF CHEVAK, NORTHWAY, HOOPER BAY, GALENA, AND ALAKANUK
SCHOOLS, ALASKA: PROVIDED FURTHER, THAT NOT TO EXCEED $100,000
APPROPRIATED UNDER THIS HEAD IN THE DEPARTMENT OF THE INTERIOR AND
RELATED AGENCIES APPROPRIATIONS ACT, 1974, TO THE EDGAR, MONTANA, PUBLIC
SCHOOL DISTRICT NO. 4, SHALL BE MADE AVAILABLE TO THE NEWLY ESTABLISHED
PLENTY COUPS HIGH SCHOOL DISTRICT NO. 3, BIG HORN COUNTY, PRYOR,
MONTANA: PROVIDED FURTHER, THAT $580,000 SHALL BE AVAILABLE TO ASSIST
THE PYRAMID LAKE PAIUTE TRIBE OF INDIANS IN THE CONSTRUCTION OF
FACILITIES FOR THE RESTORATION OF THE PYRAMID LAKE FISHERY PURSUANT TO
THE WASHOE ACT (43 U.S.C., 614): PROVIDED FURTHER, THAT NOT TO EXCEED
$100,000 SHALL BE FOR ASSISTANCE TO THE ROUGH ROCK SCHOOL ON THE NAVAJO
INDIAN RESERVATION, ARIZONA, FOR EQUIPMENT: PROVIDED FURTHER, THAT NOT
TO EXCEED $1,195,000 SHALL BE AVAILABLE TO ASSIST THE RAMAH-NAVAJO
SCHOOL BOARD, INC., INCLUDING NOT TO EXCEED $395,000 FOR PURCHASE OF
SCHOOL EQUIPMENT: PROVIDED FURTHER, THAT NOT TO EXCEED $100,000 SHALL
BE AVAILABLE TO ASSIST THE HEART BUTTE SCHOOL, BLACKFEET SCHOOL DISTRICT
NO. 1, MONTANA, FOR PLANNING FOR CONSTRUCTION OF SCHOOL FACILITIES;
THAT NOT TO EXCEED $148,000 SHALL BE AVAILABLE TO ASSIST THE
HAYS/LODGEPOLE SCHOOL DISTRICT NO. 50, HAYS, MONTANA, FOR PLANNING FOR
CONSTRUCTION OF SCHOOL FACILITIES; AND THAT NOT TO EXCEED $218,000
SHALL BE AVAILABLE TO ASSIST JOINT SCHOOL DISTRICT NO. 8, SHAWANO,
WISCONSIN FOR PLANNING AND CONSTRUCTION OF SCHOOL FACILITIES AT KESHENA
AND PLANNING OF FACILITIES AT NEOPIT; AND THAT NOT TO EXCEED $1,350,000
SHALL BE AVAILABLE TO ASSIST THE UTE INDIAN TRIBE OF THE UINTAH AND
OURAY RESERVATION, UTAH, FOR DEVELOPMENT AND CONSTRUCTION OF THE BIG
SPRINGS DOMESTIC WATER SYSTEM.
ROAD CONSTRUCTION (LIQUIDATION OF CONTRACT AUTHORITY)
FOR LIQUIDATION OF OBLIGATIONS INCURRED PURSUANT TO AUTHORITY
CONTAINED IN TITLE 23, UNITED STATES CODE, SECTION 203, //72 STAT. 906;
76 STAT. 1147.// $59,000,000, TO REMAIN AVAILABLE UNTIL EXPENDED.
INDIAN LOAN GUARANTY AND INSURANCE FUND
FOR PAYMENT TO THE LOAN GUARANTY AND INSURANCE FUND AS AUTHORIZED BY
THE INDIAN FINANCING ACT OF 1974, PUBLIC LAW 93 - 262, TITLE III,
SECTION 302, TO CARRY OUT THE PROVISIONS OF SECTIONS 217 AND 301 OF THE
ABOVE ACT TO //ANTE, P. 82.// (A) PROVIDE CAPITAL FOR A LOAN GUARANTY
AND INSURANCE FUND, (B) PAY INTEREST SUBSIDY ON GUARANTEED LOANS, AND
(C) PAY ADMINISTRATIVE EXPENSES, $20,000,000, TO REMAIN AVAILABLE UNTIL
EXPENDED: PROVIDED, THAT FOR THE PURPOSE OF ENTERING INTO CONTRACTS
PURSUANT TO TITLE V, SECTION 502 OF THE ABOVE ACT, //ANTE, P. 83.// THE
SECRETARY IS AUTHORIZED TO USE NOT TO EXCEED 5 PER CENTUM OF ANY FUNDS
APPROPRIATED FOR ANY FISCAL YEAR PURSUANT TO TITLE III, SECTION 302 OF
THE ABOVE ACT.
REVOLVING FUND FOR LOANS
FOR PAYMENT TO THE REVOLVING FUND FOR LOANS, FOR LOANS AS AUTHORIZED
BY THE INDIAN FINANCING ACT OF 1974, PUBLIC LAW 93 - 262, TITLE I,
SECTION 101, ANTE, P. 78.// $38,000,000, TO REMAIN AVAILABLE UNTIL
EXPENDED.
ALASKA NATIVE FUND
TO PROVIDE FOR THE SETTLEMENT OF CERTAIN LAND CALIMS BY NATIVES AND
NATIVE GROUPS OF ALASKA, AND FOR OTHER PURPOSES, BASED ON ABORIGINAL
LAND CLAIMS, AS AUTHORIZED BY THE ACT OF DECEMBER 18, 1971 (PUBLIC LAW
92 - 203), //85 STAT. 691, 43 USC 1601.// $70,000,000.
MISCELLANEOUS TRUST FUNDS
IN ADDITION TO THE TRIBAL FUNDS AUTHORIZED TO BE EXPENDED BY EXISTING
LAW, THERE IS HEREBY APPROPRIATED $3,000,000 FROM TRIBAL FUNDS NOT
OTHERWISE AVAILABLE FOR EXPENDITURE FOR THE BENEFIT OF INDIANS AND
INDIAN TRIBES, INCLUDING PAY AND TRAVEL EXPENSES OF EMPLOYEES; CARE,
TUITION, AND OTHER ASSISTANCE TO INDIAN CHILDREN ATTENDING PUBLIC AND
PROVATE SCHOOLS (WHICH MAY BE APID IN ADVANCE OR FROM DATE OF
ADMISSION); PURCHASE OF LAND AND IMPROVEMENTS ON LAND, TITLE TO WHICH
SHALL BE TAKEN IN THE NAME OF THE UNITED STATES IN TRUST FOR THE TRIBE
FOR WHICH PURCHASED; LEASE OF LANDS AND WATER RIGHTS; COMPENSATION AND
EXPENSES OF ATTORNEYS AND OTHER PERSONS EMPLOYED BY INDIAN TRIBES UNDER
APPROVED CONTRACTS; PAY, TRAVEL, AND OTHER EXPENSES OF TRIBAL OFFICERS,
COUNCILS, AND COMMITTEES THEREOF, OR OTHER TRIBAL ORGANIZATIONS,
INCLUDING MILEAGE FOR USE OF PRIVATELY OWNED AUTOMOBILES AND PER DIEM IN
LIEU OF SUBSISTENCE AT RATES ESTABLISHED ADMINISTRATIVELY BUT NOT TO
EXCEED THOSE APPLICABLE TO CIVILIAN EMPLOYEES OF THE GOVERNMENT; RELIEF
OF INDIANS, WITHOUT REGARD TO SECTION ( OF THE ACT OF MAY 27, 1930 (46
STAT. 391) //18 USC 4124 AND NOTE.// INCLUDING CASH GRANTS: PROVIDED,
THAT IN ADDITION TO THE AMOUNT APPROPRIATED HEREIN, TRIBAL FUNDS MAY BE
ADVANCED TO INDIAN TRIBVES DURING THE CURRENT FISCAL YEAR FOR SUCH
PURPOSES AS MAY BE DESIGNATED BY THE GOVERNING BODY OF THE PARTICULAR
TRIBE INVOLVED AND APPROVED BY THE SECRETARY: PROVIDED, HOWEVER, THAT
NO PART OF THIS APPROPRIATION OR OTHER TRIBAL FUNDS SHALL BE USED FOR
THE ACQUISITION OF LAND OR WATER RIGHTS WITHIN THE STATES OF NEVADA AND
OREGON, EITHER INSIDE OR OUTSIDE THE BOUNDARIES OF EXISTING INDIAN
RESERVATIONS, IF SUCH ACQUISITION RESULTS IN THE PROPERTY BEING EXEMPTED
FROM LOCAL TAXATION.
ADMINISTRATIVE PROVISIONS
APPROPRIATIONS FOR THE BUREAU OF INDIAN AFFAIRS (EXCEPT THE REVOLVING
FUND FOR LOANS) SHALL BE AVAILABLE FOR EXPENSES OF EXHIBITS; PURCHASE
OF NOT TO EXCEED SEVENTY-THREE POLICE-TYPE PASSENGER MOTOR VEHICLES OF
WHICH SEXTY-THREE SHALL BE FOR REPLACEMENT ONLY, WHICH MAY BE USED FOR
THE TRANSPORTATION OF INDIANS; ADVANCE PAYMENTS FOR SERVICE (INCLUDING
SERVICES WHICH MAY EXTEND BEYOND THE CURRENT FISCAL YEAR) UNDER
CONTRACTS EXECUTED PURSUANT TO THE ACT OF JUNE 4, 1936 (25 U.S.C. 452),
//49 STAT. 1458.// THE ACT OF AUGUST 3, 1956 (70 STAT. 986), //82 STAT.
4, 25 USC 309.// AND LEGISLATION TERMINATING FEDERAL SUPERVISION OVER
CERTAIN INDIAN TRIBES; AND EXPENSES REQUIRED BY CONTINUING OR PERMANENT
TREATY PROVISIONS.
OFFICE OF TERRITORIAL AFFAIRS
ADMINISTRATION OF TERRITORIES
FOR EXPENSES NECESSARY FOT EH ADMINISTRATION OF TERRITORIES UNDER THE
JURISDICTION OF THE DEPARTMENT OF THE INTERIOR, INCLUDING EXPENSES OF
THE OFFICE OF THE GOVERNOR OF AMERICAN SAMOA, AS AUTHORIZED BY LAW (48
U.S.C. 1661(C)); //45 STAT. 1253.// COMPENSATION AND MILAGE OF MEMBERS
OF THE LEGISLATURE IN AMERICAN SAMOA AS AUTHORIZED BY LAW (48 U.S.C.
1661 (C)); COMPENSATION AND EXPENSES OF THE JUDICIARY IN AMERICAN
SAMOA, IN ADDITION TO CURRENT LOCAL REVENUES, FOR SUPPORT OF
GOVERNMENTAL FUNCTIONS; GRANTS TO GUAM, AS AUTHORIZED BY LAW (48 U.S.
C., 1428 - 1428E); AND PERSONAL SERVICES, HOUSEHOLD EQUIPMENT AND
FURNISHINGS, AND UTILITIES NECESSARY IN THE OPERATION OF THE HOUSE OF
THE GOVERNOR OF AMERICAN SAMOA; $14,450,000, TOGETHER WITH $875,000 FOR
EXPENSES OF THE OFFICE OF THE GOVERNMENT COMPTROLLER FOR THE VIRGIN
ISLANDS TO BE DERIVED FROM "INTERNAL REVENUE COLLECTIONS FOR VIRGIN
ISLANDS", AS AUTHORIZED BY LAW (48 U.S.C. 1599(A)) //82 STAT. 840.// AND
$625,000 FOR EXPENSES OF THE OFFICE OF THE GOVERNMENT COMPTOLLER FOR
GUAM TO BE DERIVED FROM DUTIES AND TAXES WHICH WOULD OTHERWISE BE
COVERED INTO THE TREAUSURY OF GUAM, AS AUTHORIZED BY LAW (48 U.S.C.
1422D (A)), //82 STAT. 845, 48 USC 1401F, 14231, 1665.// TO REMAIN
AVAILABLE UNTIL EXPENDED: PROVIDED, THAT THE TERRITORIAL AND LOCAL
GOVERNMENT HEREIN PROVIDED FOR ARE AUTHORIZED TO MAKE PURCHSES THROUGHT
THE GENERAL SERVICES ADMINISTRATION: //48 USC 1470A.// PROVIDED
FURTHER, THAT APPROPRIATIONS AVAILABLE FOR THE ADMINISTRATION OF
TERRITORIES MAY BE EXPENDED FOR THE PURCHASE, CHARTER, MAINTENANCE, AND
OPERATION OF SURFACE VESSELS FOR OFFICIAL PURPOSES AND FOR COMMERCIAL
TRANSPORTATION PURPOSES FOUND BY THE SECRETARY TO BE NECESSARY.
TRUST TERRITORY OF THE PACIFIC ISLANDS
FOR EXPENSES NECESSARY FOR THE DEPARTMENT OF THE INTERIOR IN
ADMINISTRATION OF THE TRUST TERRITORY OF THE PACIFIC ISLANDS PURSUANT TO
THE TRUSTEESHIP AGREEMENT APPROVED BY JOINT RESOLUTION OF JULY 18, 1947
(61 STAT. 397), //61 STAT. 3301, 22 USC 287 NOTE.// AND THE ACT OF JUNE
30, 1954 (68 STAT. 330), AS AMENDED (84 STAT. 1559), //48 USC 1681
NOTE.// INCLUDING THE EXPENSES OF THE HIGH COMMISSIONER OF THE TRUST
TERRITORY OF THE PACIFIC ISLANDS; COMPENSATION AND EXPENSES OF THE
JUDICIARY OF THE TRUST TERRITORY OF THE PACIFIC ISLANDS; GRANTS TO THE
TRUST TERRITORY OF THE PACIFIC ISLANDS IN ADDITION TO LOCAL REVENUES,
FOR SUPPORT OF GOVERNMENTAL FUNCTIONS, AND PAYMENT TO THE TRUST
TERRITORY ECONOMIC DEVELOPMENT LOAN FUND PURSUANT TO PUBLIC LAW 92 -
257; //86 STAT. 87, 48 USC 1688.// $61,700,000, TO REMAIN AVAILABLE
UNTIL EXPENDED, INCLUDING NOT TO EXCEED $700,000 TO OFFSET REDUCTIONS
IN, OR TERMINATION OF, FEDERAL GRANT-IN-AID PROGRAMS OR OTHER FUNDS MADE
AVAILABLE TO THE TRUST TERRITORY OF THE PACIFIC ISLANDS BY OTHER FEDERAL
AGENCIES: //48 USC 1983.// PROVIDED, THAT ALL FINANCIAL TRANSACTIONS OF
THE TRUST TERRITORY, INCLUDING SUCH TRANSACTIONS OF ALL AGENCIES OR
INSTRUMENTALITIES ESTABLISHED OR UTILIZED BY SUCH TRUST TERRITORY, SHALL
BE AUDITED BY THE GENERAL ACCOUNTING OFFICE IN ACCORDANCE WITH THE
PROVISIONS OF THE BUDGET AND ACCOUNTING ACT, 1921 (42 STAT. 23), AS
AMENDED, //31 USC 1.// AND THE ACCOUNTING AND AUDITING ACT OF 1950 (64
STAT. 834): //48 USC 1682.// PROVIDED FURTHER, THAT THE GOVERNMENT OF
THE RUST TERRITORY OF THE PACIFIC ISLANDS IS AUTHORIZED TO MAKE PURCHSES
THROUGH THE GENERAL SERVICES ADMINISTRATION: //48 USC 1987.// PROVIDED
FURTHER, THAT APPROPRIATIONS AVAILABLE FOR THE ADMINSTRATION OF THE
TRUST TERRITORY OF THE PACIFIC ISLANDS MAY BE EXPENDED FOR THE PURCHASE,
CHARTER, MAINTENANCE, AND OPERATION OF SURFACE VESSELS FOR OFFICIAL
PURPOSES AND FOR COMMERCIAL TRANSPORTATION PURPOSES FOUND BY THE
SECRETARY TO BE NECESSARY IN CARRYING OUT THE PROVISIONS OF ARTICLE 6(2)
OF THE TRUSTEESHIP AGREEMENT //61 STAT. 3302.// APPROVED BY CONGRESS.
MICRONESIAN CLAIMS FUND, TRUST TERRITORY OF THE PACIFIC ISLANDS
FOR PAYMENT TO THE MICRONESIAN CLAIMS FUND FOR SETTLEMENT OF CLAIMS
OF MICRONESIAN INHABITANTS OF THE TRUST TERRITORY OF THE PACIFIC ISLANDS
AS MAY BE DETERMINED BY THE MICRONESIAN CLAIMS COMMISSION PURSUANT TO
THE PROVISIONS OF TITLE II OF PUBLIC LAW 92 - 39, //85 STAT. 96, 50 USC
APP. 2020.// $1,400,000, TO REMAIN AVAILABLE UNTIL EXPENDED.
OFFICE OF THE SOLICITOR
SALARIES AND EXPENSES
FOR NECESSARY EXPENSES OF THE OFFICE OF THE SOLICITOR,
$12,040,000.
OFFICE OF THE SECRETARY
SALARIES AND EXPENSES
FOR NECESSARY EXPENSES OF THE OFFICE OF THE SECRETARY OF THE
INTERIOR, INCLUDING NOT TO EXCEED $2,000 FOR OFFICIAL RECEPTION AND
REPRESENTATION EXPENSES, $19,454,000.
DEPARTMENTAL OPERATIONS
FOR NECESSARY EXPENSES FOR CERTAIN OPERATIONS THAT PROVIDE
DEPARTMENTWIDE SERVICES, $10,523,000, OF WHICH NOT TO EXCEED $250,000,
TO REMAIN AVAILABLE UNTIL EXPENDED, SHALL BE AVAILABLE FOR SUPPORT OF
THE THIRD UNITED NATIONS INTERNATIONAL GEOTHERMAL SYMPOSIUM.
SALARIES AND EXPENSES (SPECIAL FOREIGN CURRENCY PROGRAM)
FOR PAYMENTS IN FOREIGN CURRENCIES WHICH THE TREASURY DEPARTMENT
SHALL DETERMINE TO BE EXCESS TO THE NORMAL REQUIREMENTS OF THE UNITED
STATES, FOR NECESSARY EXPENSES OF THE OFFICE OF THE SECRETARY, AS
AUTHORIZED BY LAW, $192,000, TO REMAIN AVAILABLE UNTIL EXPENDED:
PROVIDED, THAT THIS APPROPRATION SHALL BE AVAILABLE, IN ADDITION TO
OTHER APPROPRIATIONS, TO SUCH OFFICE FOR PAYMENTS IN THE FOREGOING
CURRENCIES (7 U.S.C. 1704). //80 STAT. 1528; 84 STAT. 1379.//
GENERAL PROVISONS, DEPARTMENT OF THE INTERIOR
SEC. 101. APPROPRIATIONS MADE IN THIS TITLE SHALL BE AVAILABLE FOR
EXPENDITURE OR TRANSFER (WITHIN EACH BUREAU OR OFFICE), WITH THE
APPROVAL OF THE SECRETARY, FOR THE EMERGENCY RECONSTRUCTION,
REPLACEMENT, OR REPAIR OF AIRCRAFT, BUILDINGS, UTILITIES, OR OTHER
FACILITIES OR EQUIPMENT DAMAGED OR DESTROYED BY FIRE, FLOOD, STORM, OR
OTHER UNAVOIDABLE CAUSES: PROVIDED, THAT NO FUNDS SHALL BE MADE
AVAILABLE UNDER THIS AUTHORITY UNTIL FUNDS SPECIFICALLY MADE AVAILABLE
TO THE DEPARTMENT OF THE INTERIOR FOR EMERGENCIES SHALL HAVE BEEN
EXHAUSTED.
SEC. 102. THE SECTETARY MAY AUTHORIZE THE EXPENDITURE OR TRANSFER OF
ANY APPROPRIATION IN THIS TITLE, IN ADDITION TO THE AMOUNTS INCLUDED IN
THE BUDGET PROGRAMS OF THE SEVERAL AGENCIES, FOR THE SUPPRESSION OR
EMERGENCY PREVENTION OF FOREST OR RANGE FIRES ON OR THREATENING LANDS
UNDER JURISDICTION OF THE DEPARTMENT OF THE INTERIOR AND FOR THE
EMERGENCY REHABILITATION OF BURNED-OVER LANDS UNDER ITS JURISDICTION:
PROVIDED, THAT APPROPRIATIONS MADE IN THIS TITLE FOR FIRE SUPPRESSION
PURPOSES SHALL BE AVAILABLE FOR THE PAYMENT OF OBLIGATIONS INCURRED
FURING THE PRECEDING FISCAL YEAR, AND FOR REIMBURSEMENT TO OTHER FEDERAL
AGENCIES FOR DESTRUCTION OF VEHICLES, AIRCRAFT, OR OTHER EQUIPMENT IN
CONNECTION WITH THEIR USE FOR FIRE SUPPRESSION PURPOSES, SUCH
REIMBURSEMENT TO BE CREDITED TO APPROPRIATIONS CURRENTLY AVAILABLE AT
THE TIME OF RECEIPT THEREOF.
SEC. 103. APPROPRIATIONS MADE IN THIS TITLE SHALL BE AVAILABLE FOR
OPERATION OF WAREHOUSES, GARAGES, SHOPS, AND SIMILAR FACILITIES,
WHEREVER CONSOLIDATION OF ACTIVITIES WILL CONTRIBUTE TO EFFICIENCY OR
ECONOMY, AND SAID APPROPRIATIONS SHALL BE REIMBURSED FOR SERVICES
RENDERED TO ANY OTHER ACTIVITY IN THE SAME MANNER AS AUTHORIZED BY THE
ACT OF JUNE 30, 1932 (31 U.S.C. 686): //47 STAT. 417; 57 STAT. 219.//
PROVIDED, THAT REIMBURSEMENTS FOR COSTS OF SUPPLIES, MATERIALS AND
EQUIPMENT, AND FOR SERVICES RENDERED MAY BE CREDITED TO THE
APPROPRIATION CURRECT AT THE TIME SUCH REIMBURSEMENTS ARE RECEIVED.
SEC. 104. APPROPRIATIONS MADE TO THE DEPARTMENT OF THE INTERIOR IN
THIS TITLE OR IN THE PUBLIC WOEKS FOR WATER AND POWER DEVELOPMENT AND
ATOMIC ENERGY COMMISSION APPROPRIATION ACT, 1975, SHALL BE AVAILABLE FOR
SERVICES AS AUTHORIZED BY 5 U.S.C. 3109, //ANTE, P. 782, 80 STAT.
416.// WHEN AUTHORIZED BY THE SECRETARY, IN TOTAL AMOUNT NOT TO EXCEED
$300,000; HIRE, MAINTENANCE, AND OPERATION OF AIRCRAFT; HIRE OF
PASSENGER MOTOR VEHICLES; PURCHASE OF REPRINTS; PAYMENT FOR TELEPHONE
SERVICE IN PRIVATE RESIDENCES IN THE FIELD, WHEN AUTHORIZED UNDER
REGULATIONS APPROVED BY THE SECRETARY; AND THE PAYMENT OF DUES, WHEN
AUTHORIZED BY THE SECRETARY, FOR LIBRARY MEMBERSHIP IN SOCIETIES OR
ASSOCIATIONS WHICH ISSUE PUBLICATIONS TO MEMBERS ONLY OR AT A PRICE TO
MEMBERS LOWER THAN TO SUBSCRIBERS WHO ARE NOT MEMBERS.
SEC. 105. APPROPRIATIONS AVAILABLE TO THE DEPARTMENT OF THE INTERIOR
FOR SALARIES AND EXPENSES SHALL BE AVAILABLE FOR UNIFORMS OR ALLOWANCES
THEREFOR, AS AUTHORIZED BY LAW (5 U.S.C. 5901 - 5902 AND D. C. CODE 4 -
204). //80 STAT. 508; 81 STAT. 206, 43 STAT. 175.//
SEC. 106. IN ADDITION TO THE AIRCRAFT SPECIFICALLY AUTHORIZED UNDER
THIS ACT THERE IS HEREBY AUTHORIZED FOR ACQUISITION FOUR SURPLUS
AIRCRAFT FOR REPLACEMENT ONLY. SUCH ACQUISITIONS SHALL BE INTEFRAL TO
THE PROVISION OF CENTRALIZED AIRCRAFT SERVICES IN ALASKA.
SEC. 107. THE SUM OF $261,278,000 APPROPRIATED UNDER THE HEAD,
OFFICE OF COAL RESEARCH, SALARIES AND EXPENSES, IN PUBLIC LAW 93 - 322,
//ANTE, P. 276.// SIGNED JUNE 30, 1974, INCLUDED $12,500,000 FOR A
PROGRAM FOR MAGNETOHYDRODYNAMICS (MHD), OF WHICH $5,000,000, AS
DESCRIBED IN SENATE REPORT 93 - 903 AND HOUSE REPORT 93 - 1123, SHALL BE
USED IN PART TO INITIATE DESIGN OF AN MHD ENGINEERING TEST FACILITY, AND
THERE SHALL BE UNDERTAKEN IMMEDIATELY THE DESIGN AND PLANNING OF SUCH
ENGINEERING TEST FACILITY, TO BE LOCATED IN MONTANA, LARGE ENOUGH SO AS
TO PROVIDE A LEGITIMATE ENGINEERING VASIS WHICH WHEN ACHIEVED WILL
ENABLE THE IMMEDIATE CONSTRUCTION OF A COMMERCIAL SCALE MHD PLANT (500
MWE OR ABOVE) FOR POSSIBLE OPERATIONS IN THE MID-1980'S.
FOREST SERVICE
FOREST PROTECTION AND UTILIZATION
FOR EXPENSES NECESSARY FOR FOREST PROTECTION AND UTILIZATION, AS
FOLLOWS:
FOREST LAND MANAGEMENT: FOR NECESSARY EXPENSES OF THE FOREST
SERVICE, NOT OTHERWISE PROVIDED FOR, INCLUDING THE ADMINISTRATION,
IMPROVEMENT, DEVELOPMENT, AND MANAGEMENT OF LANDS, WATERS, OR INTERESTS
THEREIN, UNDER FOREST SERVICE ADMINISTRATION, FIGHTING AND PREVENTING
FOREST FIRES ON OR THREATENING SUCH LAMDS AND EMERGENCY REHABILITATION
AND FOR LIQUIDATION OF OBLIGATIONS INCURRED IN THE PRECEDING FISCAL YEAR
FOR SUCH PURPOSES, CONTROL OF WHITE PINE BLISTER RUST AND OTHER FOREST
DISEASES AND INSECTS ON FEDERAL AND NON-FEDERAL LANDS, IMPLEMENTATION OF
FOREST ADVANCED LOGGING AND CONSERVATION SYSTEMS INCLUDING NECESSARY
RESEARCH AND DEVELOPMENT RELATED THEREOT, $306,119,000, OF WHICH
$4,275,000 FOR FIGHTING AND PREVENTING FOREST FIRES AND FOR THE
EMERGENCY REHABILITATION OF BURNED-OVER LAMDS UNDER ITS JURISDICTION AND
$1,910,000 FOR INSECT AND DESEASE CONTROL SHALL BE APPORTIONED FOR USE,
PURSUANT TO SECTION 3679 OF THE REVISED STATUTES, AS AMENDED, TO THE
EXTENT NECESSARY UNDER THE THEN EXISTING CONDITIONS: //31 USC 665.//
PROVIDED, THAT FUNDS APPROPRIATED FOR "COOPERATIVE RANGE IMPROVEMENTS",
PURSUANT TO SECTION 12 OF THE ACT OF APRIL 24, 1950 (16 U.S.C. 580H),
//64 STAT. 85.// MAY BE ADVANCED TO THIS APPROPRIATION: PROVIDED
FURTHER, THAT FUNDS APPROPRIATED FOR THE COOPERATIVE LAW ENFORCEMENT
PROGRAM SHALL REMAIN AVAILABLE UNTIL EXPENDED.
FOREST RESEARCH: FOR FOREST RESEARCH AT FOREST AND RANGE EXPERIMENT
STATIONS, THE FOREST PRODUCTS LABORATORY, OR ELSEWHERE, AS AUTHORIZED BY
LAW, $75,402,000.
STATE AND PRIVATE FORESTRY COOPERATION: FOR COOPERATION WITH STATES
IN FOREST-FIRE PREVENTION AND SUPPRESSION, IN FOREST TREE PLANTING ON
NON-FEDERAL PUBLIC AND PRIVATE LANDS, AND IN FOREST MANAGEMENT AND
PROCESSING, AND FOR ADVISING TIMBERLAND OWNERS, ASSOCIATIONS, WOOD-USING
INDUSTRIES, AND OTHERS IN THE APPLICATION FOR FOEST MANAGEMENT
PRINCIPLES AND PROCESSING OF FOREST PRODUCTS, AS AUTHORIZED BY LAW,
$34,638,000.
CONSTRUCTION AND LAND ACQUISITION
FOR CONSTRUCTION AND ACQUISITION OF BUILDINGS AND OTHER FACILITIES
REQUIRED IN THE CONSERVATION, MANAGEMENT, INVESTIGATION, PROTECTION AND
UTILIZATION OF NATIONAL FOREST RESOURCES, POINT DISCHARGE MONITORING AND
EVALUATION, AND NON-POINT DISCHARGE SURVEILLANCE MONITORING AND
EVALUATION, AND THE ACQUISITION OF LANDS AND INTERESTS THEREIN NECESSARY
TO THESE OBJECTIVES, $30,908,000, TO REMAIN AVAILABLE UNTIL EXPENDED:
PROVIDED, THAT NOT MORE THAN $1,576,000 OF THIS APPROPRIATION MAY BE
USED FOR ACQUISITION OF LAND UNDER THE ACT OF MARCH 1, 1911, AS AMENDED
(16 U.S.C. 513 - 519). //36 STAT. 962.//
YOUTH CONSERVATION CORPS
FOR EXPENSES NECESSARY TO CARRY OUT THE PROVISIONS OF THE ACT OF
AUGUST 13, 1970, AS AMENDED BY PUBLIC LAW 92 - 597, //86 STAT. 1319, 42
USC PREC. 2711 NOTE.// $10,240,000, TO REMAIN AVAILABLE UNTIL THE END OF
THE FISCAL YEAR FOLLOWING THE FISCAL YEAR FOR WHICH APPROPRIATED:
PROVIDED, THAT $5,120,000 SHALL BE AVAILABLE TO THE SECRETARY OF THE
INTERIOR AND $5,120,000 SHALL BE AVAILABLE TO THE SECRETARY OF
AGRICULTURE: PROVIDED FURTHER, THAT THE FUNDS APPROPRIATED IN THIS
PARAGRAPH SHALL BE AVAILABLE ONLY UPON THE ENACTMENT INTO LAW OF
AUTHORIZING LIGISLATION.
FOREST ROADS AND TRAILS (LIQUIDATION OF CONTRACT AUTHORITY)
FOR EXPENSES NECESSARY FOR CARRYING OUT THE PROVISIONS OF TITLE 23,
UNITED STATES CODE, SECTIONS 203 AND 205, //72 STAT. 906; 82 STAT.
820.// RELATING TO THE CONSTRUCTION AND MAINTENANCE OF FOREST
DEVELOPMENT ROADS AND TRAILS, $120,864,000, TO REMAIN AVAILABLE UNTIL
EXPENDED, FOR LIQUIDATION OF OBLIGATIONS INCURRED PURSUANT TO AUTHORITY
CONTAINED IN TITLE 23, UNITED STATES CODE, SECTION 203: PROVIDED, THAT
FUNDS AVAILABLE UNDER THE ACT OF MARCH 4, 1913 (16 U.S.C. 501) //37
STAT. 843.// SHALL BE MERGED WITH AND MADE A PART OF THIS APPROPRIATION.
ACQUISITION OF LANDS FOR NATIONAL FORESTS
SPECIAL ACTS
FOR ACQUISITION OF LAND TO FACILITATE THE CONTROL OF SOIL EROSION AND
FLOOD DAMAGE ORIGINATING WITHIN THE EXTERIOR BOUNDARIES OF THE FOLLOWING
NATIONAL FOREST, IN ACCORDANCE WITH THE PROVISIONS OF THE FOLLOWING
ACTS, AUTHORIZING ANNUAL APPROPRIATIONS OF FOREST RECEIPTS FOR SUCH
PURPOSES, AND IN NOT TO EXCEED THE FOLLOWING AMOUNTS FROM SUCH RECEIPTS,
CACHE NATIONAL FOREST, UTAH, ACT OF MAY 11, 1938 (52 STAT. 347), AS
AMENDED, //58 STAT. 227.// $20,000; UINTA AND WASATCH NATIONAL FOREST,
UTAH, ACT OF AUGUST 26, 1935 (49 STAT. 886), AS AMENDED, $30,000;
TOIYABE NATIONAL FOREST, NEVADA, ACT OF JUNE 25, 1938 (52 STAT. 1205),
AS AMENDED, $10,000; ANGELES NATIONAL FOREST, CALIFORNIA, ACT OF JUNE
11, 1940 (54 STAT. 299), $20,000; SAN BERNARDINO AND CLEVELAND NATIONAL
FORESTS, BALIFORNIA, ACT OF JUNE 15, 1938 (52 STAT. 699), AS AMENDED,
$81,000; IN ALL, $161,000: PROVIDED, THAT NO PART OF THIS
APPROPRIATION SHALL BE USED FOR ACQUISITION OF ANY LAMD WHICH IS NOT
WITHIN THE BOUNDARIES OF THE NATIONAL FORESTS AND/OR FOR THE ACQUISITION
OF ANY LAND WITHOUT THE APPROVAL OF THE LOCAL GOVERNMENT CONCERNED.
ACQUISITION OF LANDS TO COMPLETER LAND EXCHANGES
FOR ACQUISITION OF LANDS IN ACCORDANCE WITH THE ACT OF DECEMBER 4,
1967 (16 U.S.C. 484A), //81 STAT. 531.// TO REMAIN AVAILABLE UNTIL
EXPENDED, $39,310, TO BE DERIVED FROM DEPOSITS BY PUBLIC SCHOOL
AUTHORITIES UNDER SAID ACT.
ACQUISITION OF LANDS, KLAMATH INDIANS
FOR THE ACQUISITION OF TRIBAL LANDS THAT COMPRISE THE KLAMATH INDIAN
FORESTS AS AUTHORIZED BY SECTION 8(C) OF THE ACT OF AUGUST 13, 1954, AS
AMENDED (25 U.S.C. 564W-1(E)), //72 STAT. 816.// $49,000,000, TO REMAIN
AVAILABLE UNTIL EXPENDED.
COOPERATIVE RANGE IMPROVEMENTS
FOR ARTIFICIAL REVEGETATION, CONSTRUCTION, AND MAINTENANCE OF RANGE
IMPROVEMENTS, CONTROL OF RODENTS, AND ERADICATION OF POISIONOUS AND
NOXIOUS PLANTS ON NATIONAL FORESTS IN ACCORDANCE WITH SECTION 12 OF THE
ACT OF APRIL 24, 1950 (16 U.S.C. 580H), //64 STAT. 85.// TO BE DERIVED
FROM GRAZING FEES AS AUTHORIZED BY SAID SECTION, $700,000, TO REMAIN
AVAILABLE UNTIL EXPENDED.
ASSISTANCE TO STATES FOR TREE PLANTING
FOR EXPENSES NECESSARY TO CARRY OUT SECTION 401 OF THE AGRICULTURAL
ACT OF 1956, APPROVED MAY 28, 1956 (16 U.S.C. 468E), //70 STAT. 207.//
$1,344,000, TO REMAIN AVAILABLE UNTIL EXPENDED.
CONSTRUCTION AND OPERATION OF RECREATION FACILITIES
FOR CONSTRUCTION, OPERATION, AND MAINTENANCE OF OUTDOOR RECREATION
FACILITIES, INCLUDING COLLECTION OF SPECIAL RECREATION USE FEES, TO
REMAIN AVAILABLE UNTIL EXPENDED, $1,260,000, TO DERIVED FROM THE SPECIAL
RECEIPT ACCOUNTS ESTABLISHED BY SECTION 1(B) OF THE ACT OF JULY 15, 1968
(82 STAT. 354), AND SECTION 4(E) OF THE ACT OF JULY 11, 1972 (86 STAT.
461): //16 USC 4601 - 5 NOTE, 16 USC 4601 - 6A.// PROVIDED, THAT NOT
MORE THAN 40 PER CENTUM OF THE AMOUNT CREDITED PURSUANT TO SECTION 4(E)
OF THE ACT OF JULY 11, 1972, SHALL BE AVAILABLE FOR THE ENHANCEMENT OF
THE FEE COLLECTION SYSTEM ESTABLISHED BY SECTION 4 OF SUCH ACT,
INCLUDING THE PROMOTION AND ENFORCEMENT THEREOF.
ADMINISTRATIVE PROVISIONS, FOREST SERVICE
APPROPRIATIONS TO THE FOREST SERVICE FOR THE CURRENT FISCAL YEAR
SHALL BE AVAILABLE FOR: (A) PURCHASE OF NOT TOEXCEED THREE HUNDRED
THIRTY-THREE PASSENGER MOTOR VEHICLES OF WHICH TWO HUNDRED SIXTY-SEVEN
SHALL BE FOR REPLACEMENT ONLY, AND HIRE OF SUCH VEHICLES; OPERATION AND
MAINTENANCE OF AIRCRAFT AND THE PURCHASE OF NOT TO EXCEED FOUR FOR
REPLACEMENT ONLY; (B) EMPLOYMENT PURSUANT TO THE SECOND SENTENCE OF
SECTION 706(A) OF THE ORGANIC ACT OF 1944 (7 U.S.C. 2225), //58 STAT.
742.// AND NOT TO EXCEED $100,000 FOR EMPLOYMENT UNDER 5 U.S.C. 3109;
(C) //80 STAT. 416.// UNIFORMS, OR ALLOWANCES THEREOFR, AS AUTHORIZED BY
LAW (5 U.S.C. 5901 - 5902); //80 STAT. 508; 81 STAT. 206.// (D)
PURCHASE, ERECTION, AND ALTERATION OF BUILDINGS AND OTHER PUBLIC
IMPROVEMENTS (7 U.S.C. 2250); (E) EXPENSES OF THE NATIONA FOREST
RESERVATION CONNISSION AS AUTHORIZED BY SECTION 14 OF THE ACT OF MARCH
1, 1911 (16 U.S.C. 514); //36 STAT. 1034.// (G) EXPENSES INCIDENT TO
ACQUISITION BY DONATION OR EXCHANGE OF LAND, WATERS, OR INTERSTS IN LAND
OR WATERS, PURSUANT TO THE ACT OF AUGUST 3, 1956 (7 U.S.C. 428A):
PROVIDED, THAT SUCH APPROPRIATION SHALL NOT BE AVAILABLE FOR EXPENSES
INCIDENT TO DONATIONS AND EXCHANGES WHICH CAN BE MADE PURSUANT TO
AUTHORITIES OTHER THAN THE ACT OF AUGUST 3, 1956 (7 U.S.C. 428A); AND
(H) NOT TO EXCEED $100,000 FOR EXPENSES PURSUANT TO THE VOLUNTEERS IN
THE NATIONAL FORESTS ACT OF 1972 (16 U.S.C. 558A, 558D, 558A NOTE).
//86 STAT. 147.//
EXCEPT TO PROVIDE MATERIALS REQUIRED IN OR INCIDENT TO RESEARCH OR
EXPERIMENTAL WORK WHERE NO SUITABLE DOMISTIC PRODUCT IS AVAILABLE, NO
PART OF THE FUNDS APPROPRIATED TO THE FOREST SERVICE SHALL BE EXPENDED
IN THE PURCHASE OF TWINE MANUFACTURED FROM COMMODITIES OR MATERIALS
PRODUCED OUTSIDE OF THE UNITED STATES. //16 USC 560A.//
FUNDS APPROPRIATED UNDER THIS ACT SHALL NOT BE USED FOR ACQUISITION
OF FOREST LANDS UNDER THE PROVISIONS OF THE ACT APPROVED MARCH 1, 1911,
AS AMENDED (16 U.S.C. 513 - 519, 521), //36 STAT. 962.// WHERE SUCH LAND
IS NOT WITHIN THE BOUNDARIES OF AN ESTABLISHED NATIONAL FOREST OR
PURCHASE UNIT.
NONE OF THE FUNDS MADE AVAILABLE UNDER THIS ACT SHALL BE OBLIGATED OR
EXPENDED TO CHANGE THE BOUNDARIES OF ANY REGION, TO ABOLISH ANY REGION,
TO MOVE OR CLOSE ANY REGIONAL OFFICE FOR RESEARCH, STATE AND PRIVATE
FORESTRY, AND NATIONAL FOREST SYSTEM ADMINISTRATION OF THE FOREST
SERVICE, DEPARTMENT OF AGRICULTURE, WITHOUT THE CONSENT OF THE COMMITTEE
ON APPROPRIATIONS AND COMMITTEE ON AGRICULTURE AND FORESTRY IN THE U.S.
SENATE AND U.S. HOUSE OF REPRESENTATIVES.
CONNISSION OF FINE ARTS
SALARIES AND EXPENSES
FOR EXPENSES MADE NECESSARY BY THE ACT ESTABLISHING A COMMISSION OF
FINE ARTS (40 U.S.C. 104), //36 STAT. 371.// $171,000.
INDIAN HEALTH SERVICES
FOR EXPENSES, NOT OTHERWISE PROVIDED FOR, NECESSARY TO CARRY OUT THE
ACT OF AUGUST 5, 1954 (68 STAT. 674), //87 STAT. 935, 42 USC 2001.// AND
TITLES III AND V OF THE PUBLIC HEALTH SERVICE ACT, //58 STAT. 691, 42
USC 241, 219.// INCLUDING HIRE OF PASSENGER MOTOR VEHICLES AND AIRCRAFT;
PURCHSE OF REPRINTS; PAYMENT FOR TELEPHONE SERVICE IN PRIVATE
RESIDENCES IN THE FIELD, WHEN AUTHORIZED UNDER REGULATION APPROVED BY
THE SECRETARY, $226,217,000.
INDIAN HEALTH FACILITIES
FOR CONSTRUCTION, MAJOR REPAIR, IMPROVEMENT, AND WQUIPMENT OF HEALTH
AND RELATED AUXILIARY FACILITIES, INCLUDING QUARTERS FOR PERSONNEL;
PREPARATION OF PLANS, SPECIFICATIONS, AND DEAWINGS; ACQUISITION OF
SITES; PURCHASE AND ERECTION OF PORTABLE BUILDINGS; PURCHSE OF
TRAILERS; AND PROVISION OF DOMESTIC AND COMMUNITY SANITATION FACILITIES
FOR INDIANS, AS AUTHORIZED BY SECTION 7 OF THE ACT OF AUGUST 5, 1954 (42
U.S.C. 2004A), //73 STAT. 267.// $57,431,000, TO REMAIN AVAILABLE UNTIL
EXPENDED.
ADMINISTRATIVE PROVISIONS, HEALTH SERVICES ADMINISTRATION
SEC. 1001. APPROPRIATIONS CONTAINED IN THIS ACT, AVAILABLE FOR
SALARIES AND EXPENSES, SHALLA BE AVAILABLE FOR SERVICES AS AUTHORIZED BY
5 U.S.C. 3109 BUT AT RATES NOT TO EXCEED THE PER DIEM EQUIVALENT TO THE
RATE FOR GS-18. //80 STAT. 416, 5 USC 5332 NOTE.//
SEC. 1002. APPROPRIATIONS CONTAINED IN THIS ACT, AVAILABLE FOR
SALARIES AND EXPENSES, SHALL BE AVAILABLE FOR UNIFORMS OR ALLOWANCES
THEREFOR AS AUTHORIZED BY LAW (5 U.S.C. 5901 - 5902). //80 STAT. 508;
81 STAT 206.//
SEC. 1003. APPROPRIATIONS CONTAINED IN THIS ACT AVAILABLE FOR
SALARIES AND EXPENSES, SHALL BE AVAILABLE FOR EXPENSES OF ATTENDANCE AT
MEETINGS WHICH ARE CONCERNED WITH THE FUNCTIONS OR ACTIVITIES FOR WHICH
THE APPROPRIATION IS MADE OR WHICH WILL CONTIBUTE TO IMPROVED CONDUCT,
SUPERVISION, OR MANAGEMENT OF THOSE FUNCTIONS OR ACTIVITIES.
OFFICE OF EDUCATION
INDIAN EDUCATION
FOR CARRYING OUT, TO THE EXTENT NOT OTHERWISE PROVIDED, PART A
($25,000,000), PART B ($12,000,000), AND PART C ($3,000,000) OF THE
INDIAN EDUCATION ACT, //86 STAT. 334, 20 USC 241AA NOTE.// AND
$2,000,000 FOR THE GENERAL EDUCATION PROVISIONS ACT, //ANTE, P. 556.//
$42,000,000.
SALARIES AND EXPENSES
FOR EXPENSES NECESSARY TO CARRY OUT THE PURPOSES OF THE ACT OF AUGUST
13, 1946 (25 U.S.C. 70), AS AMENDED (86 STAT. 115), //60 STAT. 1049.//
CREATING AN INDIAN CLAIMS COMMISSION, $1,324,000, OF WHICH NOT TO EXCEED
$15,000 SHALL BE AVAILABLE FOR EXPENSES OF TRAVEL.
SALARIES AND EXPENSES
FOR NECESSARY EXPENSES, AS AUTHORIZED BY THE NATIONAL CAPITAL
PLANNING ACT OF 1952 (40 U.S.C. 71 - 71I), //66 STAT. 781, 80 STAT.
416.// INCLUDING SERVICES AS AUTHORIZED BY 5 U.S.C. 3109; AND UNIFORMS
OR ALLOWANCES THEREFOR, AS AUTHORIZED BY LAW (5 U.S.C. 5901 - 5902),
//80 STAT. 508; 81 STAT. 206.// $1,777,000.
SALARIES AND EXPENSES
FOR NECESSARY EXPENSES TO CARRY OUT THE NATIONAL FOUNDATION ON THE
ARTS AND THE HUMANITIES ACT OF 1965, AS AMENDED, //79 STAT. 845; 87
STAT. 416, 20 USC 951 NOTE.// $145,000,000, OF WHICH $67,250,000 SHALL
BE AVAILABLE UNTIL EXPENDED TO THE NATIONAL ENDOWMENT FOR THE ARTS FOR
THE SUPPORT OF PROJECTS AND PRODUCTIONS IN THE ARTS THROUGH ASSISTANCE
TO GROUPS AND INDIVIDUALS PURSUANT TO SECTION 5(C) OF THE ACT, //82
STAT. 185; 87 STAT. 462, 20 USC 954.// OF WHICH NOT LESS THAN 20
PERCENT SHALL BE AVAILABLE UNTIL EXPENDED TO THE NATIONAL ENDOWMENT FOR
THE ARTS FOR ASSISTANCE PURSUANT TO SECTION 5(G) OF THE ACT; //84 STAT.
443.// $67,250,000 SHALL BE AVAILABLE UNTIL EXPENDED TO THE NATIONAL
ENDOWMENT FOR THE HUMANITIES FOR SUPPORT OF ACTIVITIES IN THE HUMANITIES
PURSUANT TO SECTION 7(C) OF THE ACT; //87 STAT. 644, 20 USC 956.// AND
$10,500,000 SHALL BE AVAILABLE FOR ADMINISTERING THE PROVISIONS OF THE
ACT: PROVIDED, THAT NOT TO EXCEED 3 PER CENTUM OF THE FUNDS
APPROPRIATED TO THE NATIONAL ENDOWMENT FOR THE ARTS FOR THE PURPOSE OF
SECTIONS 5(C) AND 5(G) AND NOT TO EXCEED 3 PER CENTUM OF THE FUNDS
APPROPRIATED TO THE NATIONAL ENDOWMENT FOR THE HUMANITIES FOR THE
PURPOSES OF SECTION 7(C) SHALL BE AVAILABLE FOR PROGRAM DEVELOPMENT AND
EVALUATION.
MATCHING GRANTS
TO CARRY OUT THE PROVISIONS OF SECTION 10(A)(2) OF THE NATIONAL
GOUNDATION ON THE ARTS AND THE HUMANITIES ACT OF 1965, AS AMENDED, //82
STAT. 186; 87 STAT. 465, 20 USC 959.// $14,000,000, TO REMAIN AVAILABLE
UNTIL EXPENDED: PROVIDED, THAT THIS APPROPRIATION SHALL BE AVAILABLE
FOR OBLIGATION ONLY IN SUCH AMOUNTS AS MAY BE EQUAL TO THE TOTAL AMOUNTS
OF GIFTS, BEQUESTS, AND DEVISES OF MONEY, AND OTHER PROPERTY ACCEPTED BY
THE CHAIRMAN OF EACH ENDOWMENT UNDER THE PROVISIONS OF SECTION 10(A)(2)
DURING THE CURRENT AND PRECEDING FISCAL YEARS, FOR WHICH EQUAL AMOUNTS
HAVE NOT PREVIOUSLY BEEN APPROPRAITED.
SALARIES AND EXPENSES
FOR NECESSARY EXPENSES OF THE SMITHSONIAN INSTITUTION, INCLUDING
RESEARCH IN THE FIELDS OF ART, SCIENCE, AND HISTORY; DEVELOPMENT,
PRESERVATION, AND DOCUMENTATION OF THE NATIONAL COLLECTIONS;
PRESENTATION OF PUBLIC EXHIBITS AND PERFORMANCES; COLLECTION,
PREPARATION, DISSEMINATION, AND EXCHANGE OF INFORMATION AND
PUBLICATIONS; CONDUCT OF EDUCATION, TRAINING, AND MUSEUM ASSISTANCE
PROGRAMS; MAINTENANCE, ALTERATION, OPERATION, AND PROTECTION OF
BUILDINGS, FACILITIES, AND APPROACHES; NOT TO EXCEED $100,000 FOR
SERVICES AS AUTHORIZED BY 5 U.S.C. 3109; //80 STAT. 416.// PURCHASE OR
RENTAL OF TWO PASSENGER MOTOR VEHICLES; PURCHASE, RENTAL, REPAIR, AND
CLEANING OF UNIFORMS FOR EMPLOYEES; $67,789,000 PROVIDED, THAT FUNDS
APPROPRIATED HEREIN ARE AVAILABLE FOR ADVANCE PAYMENTS TO INDEPENDENT
CONTRACTORS PERFORMING RESEARCH SERVICES OR PARTICIPATING IN OFFICIAL
SMITHSONIAN PRESENTATIONS.
SCIENCE INFORMATION EXCHANGE
FOR NECESSARY EXPENSES OF THE SCIENCE INFORMATION EXCHANGE,
$1,755,000.
MUSEUM PROGRAMS AND RELATED RESEARCH (SPECIAL FOREIGN CURRENCY
PROGRAM)
FOR PAYMENTS IN FOREIGN CURRENCIES WHICH THE TREASURY DEPARTMENT
SHALL DETERMINE TO BE EXCESS TO THE NORMAL REQUIREMENTS OF THE UNITED
STATES, FOR NECESSARY EXPENSES FOR CARRYING OUT MUSEUM PROGRAMS,
SCIENTIFIC AND CULTURAL RESEARCH, AND RELATED EDUCATIONAL ACTIVITIES, AS
AUTHORIZED BY LAW, $2,000,000, TO REMAIN AVAILABLE UNTIL EXPENDED AND TO
BE AVAILABLE ONLY TO UNITED STATES INSTITUTIONS: PROVIDED, THAT THIS
APPROPRIATION SHALL BE AVAILABLE, IN ADDITION TO OTHER APPROPRIATIONS TO
THE SMITHSONIAN INSTITUTION, FOR PAYMENTS IN THE FOREGOING CURRENCIES:
PROVIDED FURTHER, THAT NOT TO EXCEED $1,000,000 SHALL BE AVAILABLE TO
THE SMITHSONAIN INSTITUTION FOR THE INTERNATIONAL CAMPAIGN TO SAVE THE
MONUMENTSOF NUBIA OF THE UNITED NATIONS EDUCATIONAL, SCIENTIFIC, AND
CULTURAL ORGANIZATION FOR THE SALVAGE OF ARCHEOLOGICAL SITES ON THE
ISLAND OF PHILAE.
RESTORATION AND RENOVATION OF BUILDINGS
FOR NECESSARY EXPENSES OF RESTORATION AND RENOVATION OF BUILDINGS
OWNED OR OCCUPIED BY THE SMITHSONIAN INSTITUTION, AS AUTHORIZED BY
SECTION 2 OF THE ACT OF AUGUST 22, 1949 (63 STAT. 623), //20 USC 53A.//
INCLUDING NOT TO EXCEED $10,000 FOR SERVICES AS AUTHORIZED BY 5 U.S.C.
3109, $1,490,000, TO REMAIN AVAILABLE UNTIL EXPENDED.
CONSTRUCTION AND IMPROVEMENTS, NATIONAL ZOOLOGICAL PARK
FOR NECESSARY EXPENSES OF PLANNING, CONSTRUCTION, REMODELING, AND
EQUIPPING OF BUILDINGS AND FACILITIES AT THE NATIONAL ZOOLOGICAL PARK,
$9,420,000, TO REMAIN AVAILABLE UNTIL EXPENDED.
CONSTRUCTION
(APPROPRIATION TO LIQUIDATE CONTRACT AUTHORITY)
FOR CONSTRUCTION AND EQUIPMENT OF A BUILDING FOR A NATIONAL AIR AND
SPACE MUSEUM, INCLUDING NOT TO EXCEED $100,000 FOR SERVICES AS
AUTHORIZED BY 5 U.S.C. 3109, $7,000,000, TO REMAIN AVAILABLE UNTIL
EXPENDED, FOR LIQUIDATION OF OBLIGATIONS INCURRED UNDER THE CONTRACT
AUTHORIZATION GRANTED IN THE DEPARTMENT OF THE INTERIOR AND RELATED
AGENCIES APPROPRIATION ACT, 1973. //86 STAT. 508.//
SALARIES AND EXPENSES, NATIONAL GALLERY OF ART
FOR THE UPKEEP AND OPERATIONS OF THE NATIONAL GALLERY OF ART, THE
PROTECTION AND CARE OF THE WORKS OF ART THEREIN, AND ADMINISTRATIVE
EXPENSES INCIDENT THERETO, AS AUTHORIZED BY THE ACT OF MARCH 24, 1937
(50 STAT. 61), AS AMENDED BY THE PUBLIC RESOLUTION OF APRIL 13, 1939
(PUBLIC RESOLUTION 9, SEVENTY-SIXTH CONGRESS), //53 STAT. 477, 20 USC
74.// INCLUDING SERVICES AS AUTHORIZED BY 5 U.S.C. 3109: //80 STAT.
416.// PAYMENT IN ADVANCE WHEN AUTHORIZED BY THE TREASURER OF THE
GALLERY FOR MEMBERSHIP IN LIBRARY, MUSEUM, AND ART ASSOCIATIONS OR
SOCIETIES WHOSE PUBLICATIONS OR SERVICES ARE AVAILABLE TO MEMBERS ONLY,
OR TO MEMBERS AT A PRICE LOWER THAN TO THE GENERAL PUBLIC; PURCHASE,
REPAIR, AND CLEANING OF UNIFORMS FOR GUARDS AND ELEVATOR OPERATORS, AND
UNIFORMS, OR ALLOWANCES THEREFOR, FOR OTHER EMPLOYEES AS AUTHORIZED BY
LAW (5 U.S.C. 5901 - 5902); //80 STAT. 508; 81 STAT. 206.// PURCHASE,
OR RENTAL OF DEVICES AND SERVICES FOR PROTECTING BUILDINGS AND CONTENTS
THEREOF, AND MAINTENANCE, ALTERATION, IMPROVEMENT, AND REPAIR OF
BUILDINGS, APPROACHES, AND GROUNDS; AND NOT TO EXCEED $70,000 FOR
RESTORATION AND REPAIR OF WORKS OF ART FOR THE NATIONAL GALLERY OF ART
BY CONTRACTS MADE, WITHOUT ADVERTISING, WITH INDIVIDUALS, FIRMS, OR
ORGANIZATIONS AT SUCH RATES OR PRICES AND UNDER SUCH TERMS AND
CONDITIONS AS THE GALLERY MAY DEEM PROPER, $6,623,000.
SALARIES AND EXPENSES, WOODROW WILSON INTERNATIONAL CENTER FOR
SCHOLARS
FOR EXPENSES NECESSARY IN CARRYING OUT THE PROVISIONS OF THE WOODROW
WILSON MEMORIAL ACT OF 1968 (82 STAT. 1356), //20 USC 80E NOTE.//
INCLUDING HIRE OF PASSENGER VEHICLES AND SERVICES AS AUTHORIZED BY 5 U.
S.C. 3109, $954,000.
SALARIES AND EXPENSES
FOR EXPENSES TO CARRY OUT THE PROVISIONS OF THE ACT OF DECEMBER 11,
1973 (PUBLIC LAW 93 - 179), //87 STAT. 697.// $9,686,000, OF WHICH NOT
TO EXCEED $1,375,000 SHALL BE FOR GRANTS-IN-AID AS AUTHORIZED BY SECTION
9(A)(1) OF THE ACT.
SALARIES AND EXPENSES
FOR NECESSARY EXPENSES OF THE FEDERAL METAL AND NONMETALLIC MINE
SAFETY BOARD OF REVIEW, AS AUTHORIZED BY LAW (30 U.S.C 721) //80 STAT.
772.// INCLUDING SERVICES AS AUTHORIZED BY 5 U.S.C. 3109, $60,000.
SALARIES AND EXPENSES
FOR NECESSARY EXPENSES OF THE JOINT FEDERAL-STATE LAND USE PLANNING
COMMISSION FOR ALASKA, ESTABLISHED BY THE ACT OF DECEMBER 18, 1971
(PUBLIC LAW 92 - 203), //85 STAT. 688, 43 USC 1601 NOTE.// $693,000:
PROVIDED, THAT THIS APPROPRIATION SHALL NOT BE AVAILABLE TO PAY MORE
THAN ONE-HALF OF THE EXPENSES OF THE COMMISSION.
SALARIES AND EXPENSES
FOR NECESSARY EXPENSES, AS AUTHORIZED BY SECTION 17 OF PUBLIC LAW 92
- 578 //86 STAT. 1275, 40 USC 885.// AS AMENDED, $824,000: PROVIDED,
THAT THE FUNDS APPROPRIATED IN THIS PARAGRAPH SHALL BE AVAILABLE ONLY
UPON ENACTMENT INTO LAW OF AUTHORIZING LEGISLATION.
SEC. 301. NO PART OF ANY APPROPRIATION UNDER THIS ACT SHALL BE
ABAILABLE TO THE SECRETAIRES OF THE INTERIOR AND AGRICULTURE FOR USE FOR
ANY SALE HEREAFTER MADE OF UNPROCESSED TIMBER FROM FEDERAL LANDS WEST OF
THE 100TH MERIDIAN IN THE CONTIGUOUS 48 STATES WHICH WILL BE EXPORTED
FROM THE UNITED STATES, OR WHICH WILL BE USED AS A SUBSTITUTE FOR TIMBER
FROM PRIVATE LANS WHICH IS EXPORTED BY THE PURCHASER: PROVIDED, THAT
THIS LIMITATION SHALL NOT APPLY TO SPECIFIC QUANTITIES OF GRADES AND
SPECIES OF TIMBER WHICH SAID SECRETARIES DETERMINE ARE SURPLUS TO
DOMESTIC LUMBER AND PLYWOOD MANUFACTURING NEEDS.
SEC. 302. NO PART OF ANY APPROPRIATION CONTAINED IN THIS ACT SHALL
BE AVAILABLE FOR PAYING TO THE ADMINISTRATOR OF THE GENERAL SERVICES
ADMINISTRATION IN EXCESS OF 90 PER CENTUM OF THE STANDARD LEVEL USER
CHARGE ESTABLISHED PURSUANT TO SECTION 210(J) OF THE FEDERAL PROPERTY
AND ADMINISTRATIVE SERVICES ACT OF 1949, AS AMENDED, //86 STAT. 219, 40
USC 490.// FOR SPACE AND SERVICES.
SEC. 303. NO PART OF ANY APPROPRIATION CONTAINED IN THIS ACT SHALL
REMAIN AVAILABLE FOR OBLIGATION BEYOND THE CURRENT FISCAL YEAR UNLESS
EXPRESSLY SO PROVIDED HEREIN. THIS ACT MAY BE CITED AS THE "DEPARTMENT
OF THE INTERIOR AND RELATED AGENCIES APPROPRIATION ACT, 1975".
LEGISLATIVE HISTORY:
HOUSE REPORTS: NO. 93 - 1209 ( COMM. ON APPROPRIATIONS) AND NO.
93-, NO. 93 - 1293 ( COMM. OF CONFERENCE).
SENATE REPORT NO. 93 - 1069 (COMM. ON APPROPRIATIONS).
CONGRESSIONAL RECORD, VOL. 120 (1974):
JULY 24, CONSIDERED AND PASSED HOUSE.
AUG. 7, CONSIDERED AND PASSED SENATE, AMENDED.
AUG. 19, HOUSE AGREED TO CONFERENCE REPORT.
AUG. 20, SENATE AGREED TO CONFERENCE REPORT.
stat. 712&<&$ ,'0T,407, T F A OxAfB M BLE UNTCL S O NbEa.'
PUBLIC LAW 93-403, 88 STAT 802, NATURAL GAS PIPELINE SAFETY ACT
AMENDMENTS OF 1974.
BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE
UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT THIS ACT MAY BE
CITED AS THE "NATURAL GAS PIPELINE SAFETY ACT AMENDMENTS OF 1974". //49
USC 1974 NOTE.//
SEC. 2. SECTION 5(C) OF THE NATURAL GAS PIPELINE SAFETY ACT OF 1968
(49 U.S.C. 1674(C)) //82 STAT. 722; 86 STAT. 616.// IS AMENDED BY
RENUMBERING PARAGRAPHS (2) AND (3) AS PARAGRAPHS (3) AND (4),
RESPECTIVELY, AND BY INSERTING IMMEDIATELY AFTER PARAGRAPH (1) THE
FOLLOWING NEW PARAGRAPH:
"(2) FUNDS AUTHORIZED TO BE APPROPRIATED BY SECTION 15(B) OF THIS ACT
SHALL BE ALLOCATED AMONG THE SEVERAL STATES FOR PAYMENTS TO AID IN THE
CONDUCT OF PIPELINE SAFETY PROGRAMS IN ACCORDANCE WITH PARAGRAPH (1) OF
THIS SECTION.".
SEC. 3. SECTION 15 OF SUCH ACT (49 U.S.C. 1684) //86 STAT. 616.// IS
AMENDED TO READ AS FOLLOWS:
"APPROPRIATIONS AUTHORIZED
"SEC. 15. (A) THERE ARE AUTHORIZED TO BE APPROPRIATED $2,000,000 FOR
THE FISCAL YEAR ENDING JUNE 30, 1975, AND $2,850,000 FOR THE FISCAL YEAR
ENDING JUNE 30, 1976, FOR THE PURPOSE OF CARRYING OUT THE PROVISIONS OF
THIS ACT, EXCEPT THAT THE FUNDS APPROPRIATED PURSUANT TO THIS SUBSECTION
SHALL NOT BE USED FOR FEDERAL GRANTS-IN AID.
"(B) FOR THE PURPOSE OF CARRYING OUT THE PROVISIONS OF SECTION 5(C)
OF THIS ACT, THERE ARE AUTHORIZED TO BE APPROPRIATED FOR FEDERAL
GRANTS-IN-AID, $1,800,000 FOR THE FISCAL YEAR ENDING JUNE 30, 1975, AND
$2,500,000 FOR THE FISCAL YEAR ENDING JUNE 30, 1976.".
LEGISLATIVE HISTORY:
HOUSE REPORT NO. 93 - 1296 (COMM. ON INTERSTATE AND FOREIGN
COMMERCE).
SENATE REPORT NO. 93 - 1087 ACCOMPANYING S. 3620 (COMM. ON COMMERCE).
CONGRESSIONAL RECORD, VOL. 120 (1974):
AUG. 19, CONSIDERED AND PASSED HOUSE.
AUG. 21, CONSIDERED AND PASSED SENATE.
PUBLIC LAW 93-402, 88 STAT 801
BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE
UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT (A) THERE IS
ESTABLISHED A NATIONAL WILDLIFE REFUGE TO BE KNOWN AS THE "GREAT DISMAL
SWAMP NATIONAL WILDLIFE REFUGE" (HEREINAFTER REFERRED TO IN THIS ACT AS
THE "REFUGE"). THE REFUGE SHALL CONSIST OF-- //16 USC 668DD NOTE.//
(1) THOSE LANDS AND WATERS, COMPRISING FORTY-NINE THOUSAND
NINETY-SEVEN AND ELEVEN ONE-THOUSANDTHS ACRES, OF WHICH A 40 PER
CENTUM UNDIVED INTEREST THEREIN WAS GRANTED TO THE UNITED STATES
OF AMERICA BY THE NATURE CONSERVANCY BY DEED DATED FEBRUARY 22,
1973, AND WHICH ARE MORE PARTICULARLY DESCRIBED IN EXHIBIT A OF
THE DEED, DATED FRBRUARY 21, 1973, BY WHICH SUCH INTEREST IN SUCH
LAMDS AND WATERS WAS GRANTED TO THE NATURE CONSERVANCY BY THE
UNION CAMP CORPORATION (AND SUCH DEEDS SHALL BE ON FILE AND
AVAILABLE FOR PUBLIC INSPECTION IN THE OFFICE OF THE BUREAU OF
SPORT FISHERIES AND WILDLIFE, DEPARTMENT OF THE INTERIOR); AND
(2) SUCH ADDITIONAL LANDS AND WATERS AND INTERESTS THEREIN AS
THE SECRETARY OF THE INTERIOR (HEREINAFTER REFERRED TO IN THIS ACT
AS THE "SECRETARY") MAY ACQUIRE AFTER THE DATE OF THE ENACTMENT OF
THIS ACT PURSUANT TO SECTION 3 OF THIS ACT.
(B) UNTIL SUCH TIME AS THE REMAINING UNDIVIDED INTEREST IN THE LANDS
AND WATERS DESCRIBED IN SUBSECTION (A)(1) OF THIS SECTION IS GRANTED TO
THE SECRETARY, HE SHALL LEASE SUCH REMAINING INTEREST ON SUCH TERMS AND
CONDITIONS AS HE DEEMS APPROPRIATE.
SEC. 2. SUBJECT TO SUCH RESTRICTIONS, CONDITIONS, AND RESERVATIONS
AS ARE SPECIFIED IN THE DEEDS REFERRED TO IN THE FIRST SECTION OF THIS
ACT, THE SECRETARY SHALL ADMINISTER THE LANDS AND WATERS AND INTERESTS
THEREIN WITHIN THE REFUGE IN ACCORDANCE WITH THE PROVISIONS OF THE
NATIONAL WILDLIFE REFUGE SYSTEM ADMINISTRATION ACT OF 1966 (16 U.S.C.
668DD-668EE), //80 STAT. 927.// EXCEPT THAT THE SECRETARY MAY UTILIZE
SUCH ADDITIONAL STATUTORY AUTHORITY AS MAY BE AVAILABLE TO HIM FOR THE
CONSERVATION AND MANAGEMENT OF WILDLIFE AND NATURAL RESOURCES, THE
DEVELOPMENT OF OUTDOOR RECREATION OPPORTUNITIES, AND INTERPRETATIVE
EDUCATION AS HE DEEMS APPROPRIATE TO CARRY OUT THE PURPOSES OF THIS ACT.
IN THE ADMINISTRATION OF THE REFUGE, THE SECRETARY AND THE CHIEF OF
ENGINEERS, CORPS OF ENGINEERS, SHALL ENTER INTO SUCH CONSULTATIONS AND
TAKE SUCH COOPERATIVE ACTIONS AS THEY DEEM NECESSARY AND APPROPRIATE TO
INSURE THAT ANY NAVIGATIONAL OR OTHER USES MADE OF THE DISMAL SWAMP
CANAL DO NOT ADVERSELY AFFECT THE REFUGE AND, IN THIS REGARD, PARTICULAR
ATTENTION SHALL BE GIVEN TO THE SECRETARY AND THE CHIEF OF ENGINEERS
WITH RESPECT TO MAINTAINING AN APPROPRIATE WATER LEVEL IN LAKE DRUMMOND.
SEC. 3. THE SECRETARY MAY ACQUIRE BY DONATION, PURCHASE WITH DONATED
OR APPROPRIATED FUNDS, OR EXCHANGE, SUCH LAMDS AND WATERS AND INTERESTS
THEREIN (INCLUDING IN-HOLDINGS) THAT ARE ADJACENT TO THE LANDS AND
WATERS DESCRIBED IN SUBSECTION (A)(1) OF THE FIRST SECTION OF THIS ACT
AND ARE WITHIN THE AREA KNOWN AS THE GREAT DISMAL SWAMP LOCATED IN THE
STATES OF VIRGINIA AND NORTH CAROLINA AS HE DETERMINES TO BE SUITABLE TO
CARRY OUT THE PURPOSES OF THIS ACT; EXCEPT THAT THE SECRETARY MAY NOT
ACQUIRE ANY SUCH LANDS AND WATERS AND INTERESTS THEREIN BY PURCHASE OR
EXCHANGE WITHOUT FIRST TAKING INTO ACCOUNT SUCH RECOMMENDATIONS AS MAY
RESULT FROM THE STUDY REQUIRED UNDER PUBLIC LAW 92 - 478, APPROVED
OCTOBER 9, 1972 (86 STAT. 793 - 794).
SEC. 4. (A) EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION,
THERE IS AUTHORIZED TO BE APPROPRIATED FOR THE FISCAL YEAR ENDING JUNE
30, 1975, NOT TO EXCEED $1,000,000; FOR THE FISCAL YEAR ENDING JUNE 30,
1976, NOT TO EXCEED $3,000,000; AND FOR THE FISCAL YEAR ENDING JUNE 30,
1977, NOT TO EXCEED $3,000,000.
(B) IN NO EVENT SHALL THE AMOUNT AUTHORIZED TO BE APPROPRIATED EXCEED
THE COST ESTIMATES OF THE REPORT TO BE SUBMITTED TO THE CONGRESS BY THE
SECRETARY PURSUANT TO PUBLIC LAW 92 - 478. //86 STAT. 793.//
LEGISLATIVE HISTORY:
HOUSE REPORT 93 - 242 (COMM. ON MERCHANT MARINE AND FISHERIES).
SENATE REPORT 93 - 1039 (COMM. ON COMMERCE).
CONGRESSIONAL RECORD:
VOL. 119 (1973): JUNE 5, CONSIDERED AND PASSED HOUSE.
VOL. 120 (1974): AUG. 1, CONSIDERED AND PASSED SENATE,
AMENDED.
AUG. 19, HOUSE CONCURRED IN SENATE AMENDMENT.
PUBLIC LAW 93-401, 88 STAT 800
RESOLVED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE UNITED
STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT THE VACANCY IN THE BOARD
OF REGENTS OF THE SMITHSONIAN INSTITUTION, OF THE CLASS OTHER THAN
MEMBERS OF CONGRESS, WHICH WILL OCCUR BY THE EXPIRATION OF THE TERM OF
DOCTOR CRAWFORD H. GREENWALT OF WILMINGTON, DELAWARE, ON MAY 30, 1974,
BE FILLED BY THE APPOINTMENT OF DOCTOR MURRAY GELL-MANN OF CALIFORNIA
FOR THE STATURY TERM OF SIX YEARS.
LEGISLATIVE HISTORY:
HOUSE REPORT NO. 93 - 1252 (COMM. ON HOUSE ADMINISTRATION).
SENATE REPORT NO. 93 - 1004 (COMM. ON RULES AND ADMINISTRATION).
CONGRESSIONAL RECORD, VOL. 120 (1974):
JULY 15, CONSIDERED AND PASSED SENATE.
AUG. 19, CONSIDERED AND PASSED HOUSE.
PUBLIC LAW 93-400, 88 STAT 796, OFFICE OF FEDERAL PROCUREMENT POLICY
ACT
BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE
UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT THIS ACT MAY BE
CITED AS THE "OFFICE OF FEDERAL PROCUREMENT POLICY ACT". //41 USC 401
NOTE.//
DECLARATION OF POLICY //41 USC 401.//
SEC. 2. IT IS DECLARED TO BE THE POLICY OF CONGRESS TO PROMOTE
ECONOMY, EFFICIENCY, AND EFFECTIVENESS IN THE PROCUREMENT OF PROPERTY
AND SERVICES BY AND FOR THE EXECUTIVE BRANCH OF THE FEDERAL GOVERNMENT
BY--,
(1) ESTABLISHING POLICIES, PROCEDURES, AND PRACTICES WHICH WILL
REQUIRE THE GOVERNMENT TO ACQUIRE PROPERTY AND SERVICES OF THE
REQUISITE QUALITY AND WITHIN THE TIME NEEDED AT THE LOWEST
REASONABLE COST, UTILIZING COMPETITIVE PROCUREMENT METHODS TO THE
MAXIMUM EXTENT PRACTICABLE;
(2) IMPROVING THE QUALITY, EFFICIENCY, ECONOMY, AND PERFORMANCE
OF GOVERNMENT PROCUREMENT ORGANIZATIONS AND PERSONNEL;
(3) AVOIDING OR ELIMINATING UNNECESSARY OVERLAPPING OR
DUPLICATION OF PROCUREMENT AND RELATED ACTIVITIES;
(4) AVOIDING OR ELIMINATING UNNECESSARY OR REDUNDANT
REQUIREMENTS PLACED ON CONTRACTOR AND FEDERAL PROCUREMENT
OFFICIALS;
(5) IDENTIFYING GAPS, OMMISSIONS, OR INCONSISTENCIES IN
PROCUREMENT LAWS, REGULATIONS, AND DIRECTIVES AND IN OTHER LAWS,
REGULATIONS, AND DIRECTIVES, RELATING TO OR AFFECTING PROCUREMENT;
(6) ACHIEVING GREATER UNIFORMITY AND SIMPLICITY, WHENEVER
APPROPRIATE, IN PROCUREMENT PROCEDURES;
(7) COORDINATING PROCUREMENT POLICIES AND PROGRAMS OF THE
SEVERAL DEPARTMENTS AND AGENCIES;
(8) MINIMIZING POSSIBLE DISRUPTIVE EFFECTS OF GOVERNMENT
PORCUREMENT ON PARITCULAR INDUSTRIES, AREAS, OR OCCUPATIONS;
(9) INPROVING UNDERSTANDING OF GOVERNMENT PROCUREMENT LAWS AND
POLICIES WITHIN THE GOVERNMENT AND BY ORGANIZATIONS AND
INDIVIDUALS DOING BUSINESS WITH THE GOVERNMENT;
(10) PROMOTING FAIR DEALING AND EQUITABLE RELATIONSHIPS AMONG
THE PARTIES IN GOVERNMENT CONTRACTING; AND
(11) OTHERWISE PROMOTING ECONOMY, EFFICIENCY, AND EFFECTIVENESS
IN GOVERNMENT PROCUREMENT ORGANIZATIONS AND OPERATIONS.
FINDINGS AND PURPOSE //41 USC 402.//
SEC. 3. (A) THE CONGRESS FINDS THAT ECONOMY, EFFICIENCY, AND
EFFECTIVENESS IN THE PROCUREMENT OF PROPERTY AND SERVICES BY THE
EXECUTIVE AGENCIES WILL BE IMPROVED BY ESTABLISHING AN OFFICE TO
EXERCISE RESPONSIBILITY FOR PROCUREMENT POLICIES, REGULATIONS,
PROCEDURES, AND FORMS.
(B) THE PURPOSE OF THIS ACT IS TO ESTABLISH AN OFFICE OF FEDERAL
PROCUREMENT POLICY IN THE OFFICE OF MANAGEMENT AND BUDGET TO PROVIDE
OVERALL DIRECTION OF PROCUREMENT POLICIES, REGULATIONS, PROCEDURES, AND
FORMS FOR EXECUTIVE AGENCIES IN ACCORDANCE WITH APPLICABLE LAWS.
DEFINATION //41 USC 403.//
SEC. 4. AS USED IN THIS ACT, THE TERM "EXECUTIVE AGENCY" MEANS AN
EXECUTIVE DEPARTMENT, A MILITARY DEPARTMENT, AND AN INDEPENDENT
ESTABLISHMENT WITHIN THE MEANING OF SECTIONS 101, 102, AND 104(1),
RESPECTIVELY, OF TITLE 5, UNITED STATES CODE, //80 STAT. 378, 948; 84
STAT. 775.// AND ALSO A WHOLLY OWNED GOVERNMENT CORPORATION WITHIN THE
MEANING OF SECTION 101 OF THE GOVERNMENT CORPORATION CONTROL ACT (31 U.
S.C. 846). //59 STAT. 597; 86 STAT. 1274.//
OFFICE OF FEDERAL PROCUREMENT POLICY //41 USC 504.//
SEC. 5. (A) THERE IS ESTABLISHED IN THE OFFICE OF MANAGEMENT AND
BUDGET AN OFFICE TO BE KNOWN AS THE OFFICE OF FEDERAL PROCUREMENT POLICY
(HEREINAFTER REFERRED TO AS THE "OFFICE").
(B) THERE SHALL BE AT THE HEAD OF THE OFFICE AN ADMINISTRATOR FOR
FEDERAL PROCUREMENT POLICY (HEREINAFTER REFERRED TO AS THE
ADMINISTRATOR"), WHO SHALL BE APPOINTED BY THE PRESIDENT, BY AND WITH
THE ADVICE AND CONSENT OF THE SENATE.
AUTHORITY AND FUNCTIONS //41 USC 405.//
SEC. 6. (A) THE ADMINISTRATOR SHALL PROVIDE OVERALL DIRECTION OF
PROCUREMENT POLICY. TO THE EXTENT HE CONSIDERS APPROPRIATE AND WITH DUE
REGARD TO THE PROGRAM ACTIVITIES OF THE EXECUTIVE AGENCIES, HE SHALL
PRESCRIBE POLICIES, REGULATIONS, PROCEDURES, AND FORMS, WHICH SHALL BE
IN ACCORDANCE WITH APPLICABLE LAWS AND SHALL BE FOLLOWED BY EXECUTIVE
AGENCIES (1) IN THE PROCUREMENT OF--,
(A) PROPERTY OTHER THAN REAL PROPERTY IN BEING;
(B) SERVICES, INCLUDING RESEARCH AND DEVELOPMENT; AND
(C) CONSTRUCTION, ALTERATION, REPAIR, OR MAINTENANCE OF REAL
PROPERTY;
AND (2) IN PROVIDING FOR PROCUREMENT BY RECIPIENTS OF FEDERAL GRANTS OR
ASSISTANCE OF ITEMS SPECIFIED IN CLAUSES (A), (B), AND (C) OF THIS
SUBSECTION, TO THE EXTENT REQUIRED FOR PERFORMANCE OF FEDERAL GRANT OR
ASSISTANCE PROGRAMS.
(B) NOTHING IN SUBSECTION (A) (2) SHALL BE CONSTRUED--,
(1) TO PERMIT THE ADMINISTRATOR TO AUTHORIZE PROCUREMENT OR
SUPPLY SUPPORT, EITHER DIRECTLY OR INDIRECTLY, TO RECIPIENTS OF
FEDERAL GRANTS OR ASSISTANCE; OR
(2) TO AUTHORIZE ANY ACTION BY RECIPIENTS CONTRARY TO STATE AND
LOCAL LAWS, IN THE CASE OF PROGRAMS TO PROVIDE FEDERAL GRNATS OR
ASSISTANCE TO STATES AND POLITICAL SUBDIVISIONS.
(C) THE AUTHORITY OF THE ADMINISTRATOR UNDER THIS ACT SHALL APPLY
ONLY TO PROCUREMENT PAYABLE FROM APPROPRIATED FUNDS: PROVIDED, THAT THE
ADMINISTRATOR UNDERTAKE A STUDY OF PROCUREMENT PAYABLE FROM
NONAPPROPRIATED FUNDS. THE RESULTS OF THE STUDY, TOGETHER WITH
RECOMMENDATIONS FOR ADMINISTRATIVE OR STATUTORY CHANGES, SHALL BE
REPORTED TO THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE OF
REPRESENTATIVES AT THE EARLIES PROACTICABLE DATE, BUT IN NO EVENT LATER
THAN TWO YEARS AFTER THE DATE OF ENACTMENT OF THIS ACT.
(D) THE FUNCTIONS OF THE ADMINISTRATOR SHALL INCLUDE--,
(1) ESTABLISHING A SYSTEM OF COORDINATED, AND TO THE EXTENT
FEASIBLE, UNIFORM PROCUREMENT REGULATIONS FOR THE EXECUTIVE
AGENCIES;
(2) ESTABLISHING CRITERIA AND PROCEDURES FOR AN EFFECTIVE AND
TIMELY METHOD OF SOLICITING THE VIEWPOINTS OF INTERESTED PARTIES
IN THE DEVELOPMENT OF PROCUREMENT POLICIES, REGULATION,
PROCEDURES, AND FORMS;
(3) MONITORING AND REVISING POLICIES, REGULATIONS, PROCEDURES,
AND FORMS RELATING TO RELIANCE BY THE FEDERAL GOVERNMENT ON THE
PRIVATE SECTOR TO PROVIDE NEEDED PROPERTY AND SERVICES;
(4) PROMOTING AND CONDUCTING RESEARCH IN PROCUREMENT POLICIES,
REGULATIONS, PROCEDURES, AND FORMS;
(5) ESTABLISHING A SYSTEM FOR COLLECTING, DEVELOPING, AND
DISSEMINATING PROCUREMENT DATA WHICH TAKES INTO ACCOUNT THE NEEDS
OF THE CONGRESS, THE EXECUTIVE BRANCH, AND THE PRIVATE SECTOR;
(6) RECOMMENDING AND PROMOTING PROGRAMS OF THE CIVIL SERVICE
COMMISSION AND EXECUTIVE AGENCIES FOR RECRUITMENT, TRAINING,
CAREER DEVELOPMENT, AND PERFORMANCE EVALUATION OF PROCUREMENT
PERSONNEL.
(E) IN THE DEVELOPMENT OF POLICIES, REGULATIONS, PROCEDURES, AND
FORMS TO BE AUTHORIZED OR PRESCRIBED BY HIM, THE ADMINISTRATOR SHALL
CONSULT WITH THE EXECUTIVE AGENCIES AFFECTED, INCLUDING THE SMALL
BUSINESS ADMINISTRATION AND OTHER EXECUTIVE AGENCIES PROMULGATING
POLICIES, REGULATIONS, PROCEDURES, AND FORMS AFFECTING PROCUREMENT. TO
THE EXTENT FEASIBLE, THE ADMINISTRATOR MAY DESIGNATE AN EXECUTIVE AGENCY
OR AGENCIES, ESTABLISH INTERAGENCY COMMITTEES, OR OTHERWISE USE AGENCY
REPRESENTATIVES OR PERSONNEL, TO SOLICIT THE VIEWS AND THE AGREEMENT, SO
FAR AS POSSIBLE, OF EXECUTIVE AGENCIES AFFECTED ON SIGNIFICANT CHANGES
IN POLICIES, REGULATIONS, PROCEDURES, AND FORMS.
(F) THE AUTHORITY OF THE ADMINISTRATOR UNDER THIS ACT SHALL NOT BE
CONSTRUED TO--,
(1) IMPAIR OR INTERFERE WITH THE DETERMINATION BY EXECUTIVE
AGENCIES OF THEIR NEED FOR, OR THEIR USE OF, SPECIFIC PROPERTY,
SERVICES, OR CONSTRUCTION, INCLUDING PARTICULAR SPECIFICATIONS
THEREFOR; OR
(2) INTERFERE WITH THE DETERMINATION BY EXECUTIVE AGENCIES OF
SPECIFIC ACTIONS IN THE AWARD OR ADMINISTRATION OF PROCUREMENT
CONTRACTS.
(G) EXCEPT AS OTHERWISE PROVIDED BY LAW, NO DUTIES, FUNCTIONS, OR
RESPONSIBILITES, OTHER THAN THOSE EXPRESSLY ASSIGNED BY THIS ACT, SHALL
BE ASSIGNED, DELEGATED, OR TRANSFERRED TO THE ADMINISTRATOR.
ADMINISTRATIVE POWERS //41 USC 406.//
SEC. 7. UPON THE REQUEST OF THE ADMINISTRATOR, EACH EXECUTIVE AGENCY
IS DIRECTED TO--,
(1) MAKE ITS SERVICES, PERSONNEL, AND FACILITIES AVAILABLE TO
THE OFFICE TO THE GREATEST PRACTICABLE EXTENT FOR THE PERFORMANCE
OF FUNCTIONS UNDER THIS ACT; AND
(2) EXCEPT WHEN PROHIBITED BY LAW, FURNISH TO THE ADMINISTRATOR
AND GIVE HIM ACCESS TO ALL INFORMATION AND RECORDS IN ITS
POSSESSION WHICH THE ADMINISTRATOR MAY DETERMINE TO BE NECESSARY
FOR THE PERFORMANCE OF THE FUNCTIONS OF THE OFFICE.
RESPONSIVENESS TO CONGRESS //41 USC 407.//
SEC. 8. (A) THE ADMINISTRATOR SHALL KEEP THE CONGRESS AND ITS DULY
AUTHORIZED COMMITTEES FULLY AND CURRECTLY INFORMED OF THE MAJOR
ACTIVITIES OF THE OFFICE OF FEDERAL PROCUREMENT POLICY, AND SHALL SUBMIT
A REPORT THEREON TO THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE
HOUSE OF REPRESENTATIVES ANNUALLY AND AT SUCH OTHER TIMES AS MAY BE
NECESSARY FOR THIS PURPOSE, TOGETHER WITH APPROPRIATE LEGISLATIVE
RECOMMENDATIONS.
(B) AT LEAST 30 DAYS PRIOR TO THE EFFECTIVE DATE OF ANY MAJOR POLICY
OR REGULATION PRESCRIBED UNDER SECTION 6(A), THE ADMINISTRATOR SHALL
TRANSMIT TO THE COMMITTEES ON GOVERNMENT OPERATIONS OF THE HOUSE OF
REPRESENTATIVES AND OF THE SENATE A DETAILED REPORT ON THE PROPOSED
POLICY OR REGULATION. SUCH REPORT SHALL INCLUDE--,
(1) A FULL DESCRIPTION OF THE POLICY OR REGULATION;
(2) A SUMMARY OF THE REASONS FOR THE ISSUANCE OF SUCH POLICY OR
REGULATION; AND
(3) THE NAMES AND POSITIONS OF EMPLOYEES OF THE OFFICE WHO WILL
BE MADE AVAILABLE, PRIOR TO SUCH EFFECTIVE DATE, FOR FULL
CONSULTATION WITH SUCH COMMITTEES REGARDING SUCH POLICY OR
REGULATION.
(C) IN THE CASE OF AN EMERGENCY, THE PRESIDENT MAY WAIVE THE NOTICE
REQUIREMENT OF SUBSECTION (B) BY SUBMITTING IN WRITING TO THE CONGRESS
HIS REASONS THEREFOR AT THE EARLIEST PRACTICABLE DATE ON OR BEFORE THE
EFFECTIVE DATE OF ANY MAJOR POLICY OR REGULATION.
EFFECT ON EXISTING LAWS //41 USC 408.//
SEC. 9. THE AUTHORITY OF AN EXECUTIVE AGENCY UNDER ANY OTHER LAW TO
PRESCRIBE POLICIES, REGULATIONS, PROCEDURES, AND FORMS FOR PROCUREMENT
IS SUBJECT TO THE AUTHORITY CONFERRED IN SECTION 6 OF THIS ACT.
EFFECT ON EXISTING REGULATIONS //41 USC 409.//
SEC. 10. &ROCUREMENT POLICIES, REGULATIONS, PROCEDURES, OR FORMS IN
EFFECT AS OF THE DATE OF ENACTMENT OF THIS ACT SHALL CONTINUE IN EFFECT,
AS MODIFIED FROM TIME TO TIME, UNTIL REPEALED, AMENDED, OR SUPERSEDED BY
POLICIES, REGULATIONS, PROCEDURES, OR FORMS PROMULGATED BY THE
ADMINISTRATOR.
AUTHORIZATION OF APPROPRIATIONS //41 USC 410.//
SEC. 11. THERE ARE AUTHORIZED TO BE QPPROPRIATED TO CARRY OUT THE
PROVISIONS OF THIS ACT, AND FOR NO OTHER PURPOSE--,
(1) NOT TO EXCEED $2,000,000 FOR THE FISCAL YEAR ENDING JUNE
30, 1975, OF WHICH NOT TO EXCEED $150,000 SHALL BE AVAILALBE FOR
THE PURPOSE OF RESEARCH IN ACCORDANCE WITH SECTION 6(D)(4); AND
(2) SUCH SUMS AS MAY BE NECESSARY FOR EACH OF THE FOUR FISCAL
YEARS THEREAFTER.
ANY SUBSEQUENT LEGISLATION TO QUTHORIZE APPROPRIATIONS TO CARRY OUT THE
PURPOSES OF THIS ACT SHALL BE REFERRED IN THE SENATE TO THE COMMITTEE ON
GOVERNMENT OPERATIONS.
DELEGATION //41 USC 411.//
SEC. 12. (A) THE ADMINISTRATOR MAY DELEGATE, AND AUTHORIZE
SUCCESSIVE REDELEGATIONS OF, ANY AUTHORITY, FUNCTION, OR POWER UNDER
THIS ACT, OTHER THAN HIS BASIC AUTHORITY TO PROVIDE OVERALL DIRECTION OF
FEDERAL PROCUREMENT POLICY AND TO PRESCRIBE POLICIES AND REGULATIONS TO
CARRY OUT THAT POLICY, TO ANY OTHER EXECUTIVE AGENCY WITH THE CONSENT OF
SUCH AGENCY OR AT THE DIRECTION OF THE PRESIDENT.
(B) THE ADMINISTRATOR MAY MAKE AND AUTHORIZE SUCH DELEGATIONS WITHIN
THE OFFICE AA HE DETERMINES TO BE NECESSARY TO CARRY OUT THE PROVISIONS
OF THIS ACT.
ANNUAL PAY
SEC. 13. SECTION 5315 OF TITLE 5, UNITED STATES CODE, //80 STAT.
461; 86 STAT. 1488.// IS AMENDED BY ADDING AT THE END THEREOF THE
FOLLOWING:
"(100) ADMINISTRATOR FOR FEDERAL PROCUREMENT POLICY.".
ACCESS TO INFORMATION //41 USC 412.//
SEC. 14. (A) THE ADMINISTRATOR AND PERSONNEL IN HIS OFFICE SHALL
FURNISH SUCH INFORMATION AS THE COMPTROLLER GENERAL MAY REQUIRE FOR THE
DISCHARGE OF HIS RESPONSIBILITIES. FOR THIS PURPOSE, THE COMPTROLLER
GENERAL OR HIS REPRESENTATIVES SHALL HAVE ACCESS TO ALL BOOKS,
DOCUMENTS, PAPERS, AND RECORDS OF THE OFFICE.
(B) THE ADMINISTRATOR SHALL, BY REGULATION, REQUIRE THAT FORMAL
MEETINGS OF THE OFFICE, AS DESIGNATED BY HIM, FOR THE PURPOSE OF
ESTABLISHING PROCUREMENT POLICIES AND REGULATIONS SHALL BE OPEN TO THE
PUBLIC, AND THAT PUBLIC NOTICE OF EACH SUCH MEETING SHALL BE GIVEN NOT
LESS THAN TNE DAYS PRIOR THERETO.
REPEALS AND AMENDMENTS
SEC. 15. THE FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF
1949 (40 U.S.C. 471 ET SEQ.) //63 STAT. 377.// IS AMENDED AS FOLLOWS:
(1) SECTION 201 (A)(1) OF SUCH ACT (40 U.S.C. 481 (A)(1) IS
AMENDED BY INSERTING "SUBJECT TO REGULATIONS PRESCRIBED BY THE
ADMINISTRATOR FOR FEDERAL PROCUREMENT POLICY PURSUANT TO THE
OFFICE OF FEDERAL PROCUREMENT POLICY ACT," IMMEDIATELY AFTER
"(1)".
(2) SECTION 201 (C) OF SUCH ACT (40 U.S.C. 481 (C)) IS AMENDED
BY INSERTING "SUBJECT TO REGULATIONS PRESCRIBED BY THE
ADMINISTRATOR FOR FEDERAL PROCUREMENT POLICY PURSUANT TO THE
OFFICE OF FEDERAL PROCUREMENT POLICY ACT," IMMEDIATELY AFTER
"ADMINISTRATOR,".
(3) SECTION 206 (A)(4) OF SUCH ACT (40 U.S.C. 487 (A)(4)) //63
STAT. 390.// IS AMENDED TO READ AS FOLLOWS: "(4) SUBJECT TO
REGULATIONS PROMULGATED BY THE ADMINISTRATOR FOR FEDERAL
PROCUREMENT POLICY PURSUANT TO THE OFFICE OF FEDERAL PROCUREMENT
POLICY ACT, TO PRESCRIBE STANDARDIZED FORMS AND PROCEDURES, EXCEPT
SUCH AS THE COMPTROLLER GENERAL IS AUTHORIZED BY LAW TO PRESCRIBE,
AND STANDARD PURCHASE SPECIFICATIONS.".
(4) SECTION 602(C) OF SUCH ACT (40 U.S.C. 474) //63 STAT. 401; 64
STAT. 583.// IS AMENDED IN THE FIRST SENTENCE THEREOF BY INSERTING
"EXCEPT AS PROVIDED BY THE OFFICE OF FEDERAL PROCUREMENT POLICY ACT,
AND" IMMEDIATELY AFTER "HEREWITH,".
LEGISLATIVE HOSTORY:
HOUSE REPORTS: NO. 93 - 1176 ACCOMPANYING H.R. 15233 (COMM. ON
GOVERNMENT OPERATIONS) AND NO. 93 - 1268 (COMM. OF CONFERENCE).
SENATE REPORT NO. 93 - 692 (COMM. ON GOVERNMENT OPERATIONS).
CONGRESSIONAL RECORD, VOL. 120 (1974):
MAR. 1, CONSIDERED AND PASSED SENATE.
JULY 15, CONSIDERED AND PASSED HOUSE, AMENDED, IN LIEU OF H.R.
15233.
AUG. 14, HOUSE AGREED TO CONFERENCE REPORT.
AUG. 19, SENATE AGREED TO CONFERENCE REPORT.
PUBLIC LAW 93-399, 88 STAT 795
RESOLVED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE UNITED
STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT THE VACANCY IN THE BOARD
OF REGENTS OF THE SMITHSONIAN INSTITUTION, OF THE CLASS OTHER THAN
MEMBERS OF CONGRESS, WHICH WILL OCCUR BY THE EXPIRATION OF THE TERM OF
DOCTOR CARYL P. HASKINS OF WASHINTON, DISTRICT OF COLUMBIA, ON MAY 30,
1974, BE FILLED BY THE APPOINTMENT OF THE PRESENT INCUMBENT FOR THE
STATUTORY TERM OF SIX YEARS.
LEGISLATIVE HISTORY:
HOUSE REPORT NO. 93 - 1251 (COMM. ON HOUSE ADMINISTRATION).
SENATE REPORT NO. 93 - 1003 (COMM. ON RULES AND ADMINISTRATION).
CONGRESSION RECORD, VOL. 120 (1974):
JULY 15, CONSIDERED AND PASSED SENATE.
AUG. 19, CONSIDERED AND PASSED HOUSE.
PUBLIC LAW 93-398, 88 STAT 795
RESOLVED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE UNITED
STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT THE VACANCY IN THE BOARD
OF REGENTS OF THE SMITHSONIAN INSTITUTION, OF THE CLASS OTHER THAN
MEMBERS OF CONGRESS, WHICH WILL OCCUR BY THE EXPIRATION OF THE TERM OF
DOCTOR WILLIAM A.M. BURDEN, OF NEW YORK, NEW YORK, ON JULY 2, 1974, BE
FILLED BY THE REAPPOINTMENT OF THE PRESENT INCUMBENT FOR THE STATUTORY
TERM OF SIX YEARS.
LEGISLATIVE HISTORY:
HOUSE REPORT NO. 93 - 1250 (COMM. ON HOUSE ADMINISTRATION.
SENATE REPORT NO. 93 - 1002 (COMM. ON RULES AND ADMINISTRATION).
CONGRESSIONAL RECORD, VOL. 120 (1974):
JULY 15, CONSIDERED AND PASSED SENATE.
AUG. 19, CONSIDERED AND PASSED HOUSE.
PUBLIC LAW 93-397, 88 STAT 795
BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE
UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT BEGINNING WITH
OCTOBER 1, 1974, THROUGH SEPTEMBER 30, 1976, THE COLUMNS UNDER THE
HEADINGS "FOR COLONELS" AND "FOR LIEUTENANT COLONELS" CONTAINED IN THE
TABLE IN SECTION 8202(A) OF TITLE 10, UNITED STATES CODE, //10 USC 8202
NOTE, 70A STAT. 498; 80 STAT. 849; 86 STAT. 1175.// ARE SUSPENDED.
FOR SUCH PERIOD SUCH COLUMNS SHALL READ AS FOLLOWS:
LEGISLATIVE HISTORY:
HOUSE REPORT NO. 93 - 1234 (COMM. ON ARMED SERVICES).
SENATE REPORT NO. 93 - 1100 (COMM. ON ARMED SERVICES).
CONGRESSIONAL RECORD, VOL. 120 (1974):
AUG. 5, CONSIDERED AND PASSED HOUSE.
AUG. 16, CONSIDERED AND PASSED SENATE, AMENDED.
AUG. 20, HOUSE CONCURRED IN SENATE AMENDMENTS.
PUBLIC LAW 93-396, 88 STAT 794
BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE
UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT THE ACT ENTITLED
"AN ACT TO PROVIDE BETTER FACILITIES FOR THE ENFORCEMENT OF THE CUSTOMS
AND IMMIGRATION LAWS", APPROVED JUNE 26, 1930, AS AMENDED (19 U.S.C.
68), //54 STAT. 109!; 76 STAT. 87.// IS FURTHER AMENDED BY STRIKING OUT
"$100,000" AND INSERTING IN LIEU THEREOF "$200,000".
LEGISLATIVE HISTORY:
HOUSE REPORT NO. 93 - 733 (COMM. ON PUBLIC WORKS).
SENATE REPORT NO. 93 - 1099 (COMM. ON PUBLIC WORKS).
CONGRESSIONAL RECORD:
VOL. 119 (1973): DEC. 18, CONSIDERED AND PASSED HOUSE.
VOL. 120 (1974): AUG. 16, CONSIDERED AND PASSED SENATE.
PUBLIC LAW 93-395, 88 STAT 793, DISTRICT OF COLUMBIA SELF-GOVERNMENT
AND GOVERNMENTAL REORGANIZATION ACT, AMENDMENTS
BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE
UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT THE DISTRICT OF
COLUMBIA SELF-GOVERNMENT AND GOVERNMENTAL REORGANIZATION ACT (84 STAT.
774) //D.C. CODE 1 - 101 NOTE.// IS AMENDED AS FOLLOWS:
(1) THE SECOND SENTENCE OF SUBSECTION (G) OF SECTION 204 //87 STAT.
783, D.C. CODE 36 - 701 NOTE.// OF THAT ACT IS REPEALED.
(2) SUBSECTION (B) OF SECTION 401 OF THAT ACT //87 STAT. 785.// IS
AMENDED BY (A) REDESIGNATING PARAGRAPH (3) AS PARAGRAPH (4); AND (B)
INSERTING IMMEDIATELY AFTER PARAGRAPH (2) FOLLOWING:
"(3) TO FILL A VACANCY IN THE OFFICE OF CHAIRMAN, THE BOARD OF
ELECTIONS SHALL HOD A SPECIAL ELECTION IN THE DISTRICT ON THE FIRST
TUESDAY OCCURRING MORE THAN ONE HUNDRED AND FOURTEEN DAYS AFTER THE DATE
ON WHICH SUCH VACANCY OCCURS, UNLESS THE BOARD OF ELECTION DETERMINES
THAT SUCH VACANCY COULD BE MORE PRACTICABLY FILLED IN A SPECIAL ELECTION
HELD ON THE SAME DAY AS THE NEXT GENERAL ELECTION TO BE HELD IN THE
DISTRICT OCCURRING WITHIN SIXTY DAYS OF THE DATE ON WHICH A SPECIAL
ELECTION WOULD OTHERWISE HAVE BEEN HELD UNDER THE PROVISIONS OF THIS
PARAGRAPH. THE PERSON ELECTED CHAIRMAN TO FILL A VACANCY IN THE OFFICE
OF CHAIRMAN SHALL TAKE OFFICE ON THE DAY IN WHICH THE BOARD OF ELECTIONS
CERTIFIES HIS ELECTION, AND SHALL SERVE AS CHAIRMAN ONLY FOR THE
REMAINDER OF THE TERM DURING WHICH SUCH VACANCY OCCURRED. WHEN THE
OFFICE OF CHAIRMAN BECOMES VACANT, THE COUNCIL SHALL SELECT ONE OF THE
ELECTED AT-LARGE MEMBERS OF THE COUNCIL TO SERVE AS CHAIRMAN AND ONE TO
SERVE AS CHAIRMAN PRO TEMPORE UNTIL THE ELECTION OF A NEW CHAIRMAN."
(3) THE FIRST SENTENCE OF SECTION 441 OF THAT ACT IS AMENDED TO READ
AS FOLLOWS: "THE FISCAL YEAR OF THE DISTRICT SHALL, BEGINNING ON
OCTOBER 1, 1976, COMMENCE ON THE FIRST DAY OF OCTOBER OF EACH YEAR AND
SHALL END ON THE THIRTIETH DAY OF SEPTEMBER OF THE SUCCEEDING CALENDAR
YEAR."
(4) PARAGRAPH (1) OF SECTION 462 OF THAT ACT IS AMENDED TO READ AS
FOLLOWS:
"(1) BRIEFLY DESCRIBING EACH PROJECT TO BE FINANCED BY THE
ACT;".
(5) THE FIRST SENTENCE OF SECTION 465 OF THAT ACT IS AMENDED TO READ
AS FOLLOWS: "AT THE END OF THE TWENTY-DAY PERIOD SPECIFIED IN SECTION
464, THE MAYOR MAY ISSUE GENERAL OBLIGATION BONDS AS AUTHORIZED PURSUANT
TO THE PROVISIONS OF SECTION 461 THROUGH 465."
(6) THE SECOND SENTENCE OF SECTION 466 IS AMENDED BY STRIKING OUT
"COUNCIL" AND INSERTING IN LIEU THEREOF "MAYOR".
(7) SECTION 502 OF THAT ACT //D.C. CODE 47- 2531D.// IS AMENDED TO
READ AS FOLLOWS:
"AUTHORIZATION OF APPROPRIATIONS
SEC. 502. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THERE IS
AUTHORIZED TO BE APPROPRIATED AS THE ANNUAL FEDERAL PAYMENT TO THE
DISTRICT OF COLUMBIA FOR THE FISCAL YEAR ENDING JUNE 30, 1975, THE SUM
OF $230,000,000; FOR THE FISCAL YEAR INDING JUNE 30, 1976, THE SUM OF
$254,000,000; FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 1977, THE SUM OF
$280,000,000; FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 1978, AND FOR
EACH FISCAL YEAR THEREAFTER, THE SUM OF $300,000,000. FOR THE PERIOD
JULY 1, 1976, THROUGH SEPTEMBER 30, 1976, THERE IS AUTHORIZED TO BE
APPROPRIATED A FEDERAL PAYMENT OF $70,000,000."
(8) SECTION 771 OF THAT ACT AS AMENDED //D.C. CODE 1 - 101 NOTE.// TO
READ AS FOLLOWS:
"SEC. 771. (A) TITLES I AND V, AND PARTS A AND G, AND SECTION 722 OF
TITLE VII SHALL TAKE EFFECT ON THE DATE OF ENACTMENT OF THIS ACT.
//D.C. CODE 1 - 101 NOTE, 47 - 2501C, 1 - 1113 NOTE.//
"(B) SECTIONS 712, 713, 714, AND 715 OF TITLE VII, AND SECTION 401
(B) OF TITLE IV, //87 STAT. 818, 785.// AND TITLE II SHALL TAKE EFFECT
JULY 1, 1974, EXCEPT THAT ANY PROVISION THEREOF WHICH IN EFFECT
TRANSFERS AUTHORITY TO APPOINT ANY CITIZEN MEMBER OF THE NATIONAL
CAPITAL PLANNING COMMISSION OR THE DISTRICT OF COLUMBIA REDEVELOPMENT
LAND AGENCY SHALL TAKE EFFECT JANUARY 2, 1975,
"(C) TITLES III AND IV, EXCEPT SECTION 401(B) OF TITLE IV, //D.C.
CODE 1 - 1103 NOTE; 5 - 412 NOTE, 414 NOTE, 417 NOTE; 43 - 201 NOTE;
2 - 1702 NOTE.// SHALL TAKE EFFECT JANUARY 2, 1975, IF TITLE IV IS
ACCEPTED BY A MAJORITY OF THE REGISTERED QUALIFIED ELECTORS IN THE
DISTRICT OF COLUMBIA VOTING ON THE CHARTER ISSUE IN THE CHARTER
REFERENDUM.
"(D) TITLE VI AND PARTS D AND F AND SECTIONS 711, 716, 717, 718, 719,
721, AND 723 OF TITLE VII //87 STAT. 813, 822, 836, 818 - 821.// SHALL
TAKE EFFECT ONLY IF AND UPON THE DATE THAT TITLE IV BECOMES EFFECTIVE.
"(E) PART E OF TITLE VII //87 STAT. 832.// SHALL TAKE EFFECT ON THE
DATE ON WHICH TITLE IV IS ACCEPTED BY A MAJORITY OF THE REGISTERED
QUALIFIED ELECTORS IN THE DISTRICT OF COLUMBIA VOTING ON THE CHARTER
ISSUE IN THE CHARTER REFERENDU,."
SEC. 2. IN ADDITION TO OTHER AUTHORITY DELEGATED TO IT, AND IN
ACCORDANCE WITH SECTION 406 OF REORGANIZATION PLAN NUMBERED 2 OF 1967,
//D.C. CODE 5 - 928A.// THE DISTRICT OF COLUMBIA COUNCIL IS AUTHORIZED,
BY REGULATION, TO PROHIBIT THE ESTABLISHMENT, //81 STAT. 978, 5 USC APP,
D.C. CODE 1 APP.// AFTER THE EFFECTIVE DATE OF SUCH REGULATION, OF ANY
HORIZONTAL PROPETY REGIME, REAL ESTATE CONDOMINIUMS PROJECT, OR OTHER
CONVERSION OF UNITS IN A MULTIUNIT STRUCTURE INTO A CONDOMUNIUM PURSUANT
TO THE HORIZONTAL PROPERTY ACT OF THE DISTRICT OF COLUMBIA (D. C. CODE,
SEC. 5 - 901 ET SEQ.). //77 STAT. 449.//
SEC. 3. (A) THE FIRST SENTENCE OF SUBSECTION (E) OF SECTION 10 OF
THE DISTRICT OF COLUMBIA ELECTION ACT (D.C. CODE, SEC. 1 - 1110) //D.C.
CODE 1 - 1110.// IS AMENDED BY SRRIKING OUT "FOR MEMBERS OF THE BOARD OF
EDUCATION". //82 STAT. 106.//
(B) THE BOARD OF ELECTIONS SHALL PRESCRIBE REGULATIONS AS IT
CONSIDERS NECESSARY IN ORDER TO CARRY OUT THE PURPOSES OF THE AMENDMENT
MADE BY SUBSECTION (A), INCLUDING ESTABLISHING THE FILING DATE FOR
NOMUNATION PETITIONS FOR ANY ELECTIONS TO BE HELD DURING NOVEMBER 1974.
//D.C. CODE 1 - 1110 NOTE.//
LEGISLATIVE HOSTORY:
HOUSE REPROT NO. 93 - 1201 ( COMM. ON THE DISTRICT OF COLUMBIA).
SENATE REPORT NO. 93 - 1078 (COMM. ON THE DISTRICT OF COLUMBIA).
CONGRESSIONAL RECORD, VOL. 120 (1974):
JULY 29, CONSIDERED AND PASSED HOUSE.
AUG. 8, CONSIDERED AND PASSED SENATE, AMENDED.
AUG. 15, HOUSE CONCURRED IN SENATE AMENDMENTS.
PUBLIC LAW 93-394, 88 STAT 792
BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE
UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT THE PORTION OF THE
FIRST SENTENCE OF SECTION 311(A), CHAPTER 5 OF TITLE 37, UNITED STATES
CODE, //81 STAT. 651.// PRECEDING CLAUSE (1), IS AMENDED TO READ AS
FOLLOWS:
"(A) UNDER REGULATIONS TO BE PRESCRIBED BY THE SECRETARY OF DEFENSE
OR BY THE SECRETARY OF HEALTH, EDUCATION, AND WELFARE, AS APPROPRIATE,
AN OFFICER OF THE ARMY OR NAVY IN THE MEDICAL CORPS ABOVE THE PAY GRADE
OF 0 - 6 OR SUCH AN OFFICER WHO IS BELOW THAT PAY GRADE WHO IS
UNDERGOING INITIAL RESIDENCY TRAINING AND WHO WAS ON ACTIVE DUTY ON JUNE
1, 1974, AN OFFICER OF THE AIR FORCE WHO IS DESIGNATED AS A MEDICAL
OFFICER AND IS ABOVE THE PAY GRADE OF 0 - 6 OR SUCH AN OFFICER WHO IS
BELOW THAT PAY GRADE WHO IS UNDERGOING INITIAL RESIDENCY TRAINING AND
WHO WAS ON ACTIVE DUTY ON JUNE 1, 1974, A MEDICAL OFFICER OF THE PUBLIC
HEALTH SERVICE ABOVE THE PAY GRADE OF 0 - 6 OR SUCH AN OFFICER WHO IS
BELOW THAT PAY GRADE WHO IS UNDERGOING INITIAL RESIDENCY TRAINING AND
WHO WAS ON ACTIVE DUTY ON JUNE 1, 1974, AN OFFICER OF THE ARMY OR NAVY
IN THE DENTAL CORPS, AN OFFICER OF THE AIR FORCE WHO IS DESIGNATED AS A
DENTAL OFFICER, OR A DENTAL OFFICER OF THE PUBLIC HEALTH SRVICE WHO--".
SEC. 2. THE AMENDMENT MADE BY THE ACT SHALL BE EFFECTIVE JUNE 1,
1974. //31 USC 311 NOTE.//
LEGISLATIVE HISTORY:
HOUSE REPORT NO. 93 - 1221 (COMM. ON ARMED SERVICES).
SENATE REPORT NO. 93 - 1093 (COMM. ON ARMED SERVICES).
CONGRESSIONAL RECORD, VOL. 120 (1974):
AUG. 5, CONSIDERED AND PASSED HOUSE.
AUG. 16, CONSIDERED AND PASSED SENATE.
PUBLIC LAW 93-393, 88 STAT 782, PUBLIC WORKS FOR WATER AND POWER
DEVELOPMENT AND ATOMIC ENERGY COMMISSION APPROPRIATION ACT, 1975.
BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE
UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT THE FOLLOWING SUMS
ARE APPROPRIATED, OUT OF ANY MONEY IN THE TREASURY NOT OTHERWISE
APPROPRIATED, FOR THE FISCAL YEAR ENDING JUNE 30, 1975, FOR PUBLIC WORKS
FOR WATER AND POWER DEVELOPMENT, INCLUDING THE CORPS OF
ENGINEERS--CIVIL, THE BUREAU OF RECLAMATION, THE BONNEVILLE POWER
ADMINISTRATION AND OTHER POWER AGENCIES OF THE DEPARTMENT OF THE
INTERIOR, THE APPALACHIAN REGIONAL DEVELOPMENT PROGRAMS, THE FEDERAL
POWER COMMISSION, THE TENNESSEE VALLEY AUTHORITY, THE ATOMIC ENERGY
COMMISSION, AND RELATED INDEPENDENT AGENCIES AND COMMISSIONS, AND FOR
OTHER PURPOSES, NAMELY:
OPERATING EXPENSES
FOR NECESSARY OPERATING EXPENSES OF THE COMMISSION IN CARRYING OUT
THE PURPOSES OF THE ATOMIC ENERGY ACT OF 1954, AS AMENDED, //68 STAT.
919, 42 USC 2011 NOTE.// INCLUDING THE EMPLOYMENT OF ALIENS; SERVICES
AUTHORIZED BY 5 U.S.C. 3109; //80 STAT. 416.// HIRE, MAINTENANCE, AND
OPERATION OF AIRCRAFT; PUBLICATION AND DISSEMINATION OF ATOMIC
INFORMATION; PURCHASE, REPAIR AND CLEANING OF UNIFORMS; OFFICIAL
ENTERTAINMENT EXPENSES (NOT TO EXCEED $30,000); REIMBURSEMENT OF THE
GENERAL SERVICES ADMINISTRATION FOR SECURITY GUARD SERVICES; HIRE OF
PASSENGER MOTOR VEHICLES; $1,411,960,000 AND ANY MONEYS (EXCEPT SUMS
RECEIVED FROM DISPOSAL OF PROPERTY UNDER THE ATOMIC ENERGY COMMUNITY ACT
OF 1955, AS AMENDED (42 U.S.C. 2301)) // 69 STAT. 471.// RECEIVED BY THE
COMMISSION, NOTWITHSTANDING THE PROVISIONS OF SECTION 3617 OF THE
REVISED STATUTES (31 U.S.C. 484), TO REMAIN AVAILABLE UNTIL EXPENDED:
PROVIDED, THAT THE AMOUNT APPROPRAITED FOR "OPERATING EXPENSES" IN THE
SPECIAL ENERGY RESEARCH AND DEVELOPMENT APPROPRIATION ACT, 1975, //ANTE,
P. 278.// SHALL BE MERGED, WITHOUT LIMITATION, WITH THIS APPROPRIATION:
PROVIDED FURTHER, THAT FROM THIS APPROPRIATION TRANSFERS OF SUMS MAY BE
MADE TO OTHER AGENCIES OF THE GOVERNMENT FOR THE PERFORMANCE OF THE WORK
FOR WHICH THIS APPROPRIATION IS MADE, AND IN SUCH CASES THE SUMS SO
TRANSFERRED MAY BE MERGED WITH THE APPROPRIATION TO WHICH TRANSFERRED.
FOR EXPENSES OF THE COMMISSION, AS AUTHORIZED BY LAW, IN CONNECTION
WITH THE PURCHASE AND CONSTRUCTION OF PLANT AND THE ACQUISITION OF
CAPITAL WQUIPMENT AND OTHER EXPENSES INCIDENTAL THERETO NECESSARY IN
CARRYING OUT THE PURPOSES OF THE ATOMIC ENERGY ACT OF 1954, AS AMENDED,
INCLUDIGN THE ACQUISITION OR CONDEMNATION OF ANY REAL PROPERTY OR ANY
FACILITY OR FOR PLANT OR FACILITY ACQUISITION, CONSTRUCTION, OR
EXPANSION; PURCHASE OF NOT TO EXCEED THREE HUNDRED AND NINETY-FIVE FOR
REPLACEMENT ONLY, AND HIRE OF PASSENGER MOTOR VEHICLES; PURCHASE OF
THREE FOR REPLACEMENT ONLY, AND HIRE OF AIRCRAFT; $330,705,000 TO
REMAIN AVAILABLE UNTIL EXPENDED: PROVIDED, THAT THE AMOUNT APPROPRIATED
FOR "PLANT AND CAPTIAL EQUIPMENT" IN THE SPECIAL ENERGY RESEARCH AND
DEVELOPMENT APPROPRIATION ACT, 1975, //ANTE, P. 279.// 51 SHALL BE
MERGED, WITHOUT LIMITATION, WITH THIS APPROPRIATION.
GENERAL PROVISIONS
SEC. 101. NOT TO EXCEED 5 PER CENTUM OF APPROPRATIONS MADE AVAILABLE
FOR THE CURRENT FISCAL YEAR FOR "OPERATING EXPENSES" AND "PLANT AND
CAPTIAL EQUIPMENT" MAY BE TRANSFERRED BETWEEN SUCH APPROPRIATIONS, BUT
NIETHER SUCH APPROPRATION, EXCEPT AS OTHERWISE PROVIDED HEREIN, SHALL BE
INCREASED BY MORE THAN 5 PER CENTUM BY ANY SUCH TRANSFERS, AND ANY SUCH
TRANSFERS SHALL BE REPORTED PROMPTLY TO THE APPROPRIATIONS COMMITTEES OF
THE HOUSE AND SENATE.
DEPARTMENT OF THE ARMY
CORPS OF ENGINEERS--CIVIL
THE FOLLOWING APPROPRIATIONS SHALL BE EXPENDED UNDER THE DIRECTION OF
THE SECRETARY OF THE ARMY AND THE SUPERVISION OF THE CHIEF OF ENGINEERS
FOR AUTHORIZED CIVIL SUNCTIONS OF THE DEPARTMENT OF THE ARMY PERTAINING
TO REIVERS AND HARBORS, FLOOD CONTROL, BEACH EROSION, AND RELATED
PURPOSES:
GENERAL INVESTIGATIONS
FOR EXPENSES NECESSARY FOR THE COLLECTION AND STUDY OF BASIC
INFORMATION PERTAINING TO RIVER AND HARBOR, FLOOD CONTOL, SHORE
PROTECTION, AND RELATED PROJECTS, RESTUDY OF AUTHORIZED PROJECTS, AND
WHEN AUTHORIZED BY LAW, SURVEYS AND STUDIES OF PROJECTS PRIOR TO
AUTHORIZATION FOR CONSTRUCTION, $65,284,000, TO REMAIN AVAILABLE UNTIL
EXPENDED: PROVIDED, THAT $1,490,000 OF THIS APPROPRIATION SHALL BE
TRANSFERRED TO THE UNITED STATES FISH AND WILDLIFE SERVICE FOR STUDIES,
INVESTIGATIONS, AND REPORTS THEREON AS REQUIRED BY THE FISH AND WILDLIFE
COORDINATION ACT OF 1958 (72 STAT. 563 - 565), //16 USC 661 NOTE.// TO
PROVIDE THAT WILDLIFE CONSERVATION SHALL RECEIVE EQUAL CONSIDERATION AND
BE COORDINATED WITH OTHER FEATURES OF WATER-RESOURCES DEVELOPMENT
PROGRAMS OF THE DEPARTMENT OF THE ARMY.
CONSTUCTION, GENERAL
FOR THE PROSECUTION OF RIVER AND HARBOR, FLOOD CONTOL, SHORE
PROTECTION, AND RELATED PROJECTS AUTHORIZED BY LAW; AND DETAILED
STUDIES, AND PLANS AND SPECIDICATIONS, OF PROJECTS (INCLUDING THOSE FOR
DEVELOPMENT WITH PARTICIPATION OR UNDER CONSIDERATION FOR PARTICIPATION
BY STATES, LOCAL GOVERNMENTS, OR PRIVATE GROUPS) AUTHORIZED OR MADE
ELIGIBLE FOR SELECTION BY LAW (BUT SUCH STUDIES SHALL NOT CONSTITUTE A
COMMITMENT OF THE GOVERNMENT OT CONSTRUCTION): $973,681,000, TO REMAIN
AVAILABLE UNTIL EXPENDED: PROVIDED, THAT NO PART OF THIS APPROPRIATION
SHALL BE USED FOR PROJECTS NOT AUTHORIZED BY LAW OR WHICH ARE AUTHORIZED
BY LAW LIMITING THE AMOUNT TO BE APPROPRIATED THEREFOR, EXCEPT AS MAY BE
WITHIN THE LIMITS OF THE AMOUNT NOW OR HEREAFTER AUTHORIZED TO BE
APPROPRIATED: PROVIDED FURTHER, THAT $1,800,000 OF THIS APPROPRIATION
SHALL BE TRANSFERRED TO THE UNITED STATES FISH AND WILDLIFE SERVICE FOR
STUDIES, INVESTIGATIONS, AND REPORTS THEREON AS REQUIRED BY THE FISH AND
WILDLIFE COORDINATION ACT OF 1958 (72 STAT. 563 - 565) TO PROVIDE THAT
WILDLIFE CONSERVATION SHALL RECEIVE EQUAL CONSIDERATION AND BE
COORDINATED WITH OTHER FEATURES OF WATER-RESOURCE DEVELOPMENT PROGRAMS
OF THE DEPARTMENT OF THE ARMY.
FLOOD, CONTROL, MISSISSIPPI RIVER AND TRIBUTARIES
FOR EXPENSES NECESSARY FOR PROSECUTING WORK OF FLOOD CONTROL, AND
RESCUE WORK, REPARI, RESTORATION, OR MAINTENANCE OF FLOOD CONTROL
PROJECTS THREATENED OR DESTROYED BY FLOOD, AS AUTHORIZED BY LAW (33 U.
S.C. 702A, 702G - 1), //45 STAT. 534; 49 STAT. 1511.// $161,948,000, TO
REMAIN AVAILABLE FOR BANK STABLIZATION MEASURES ASDETERMINED BY THE
CHIEF OF ENGINEERS TO BE ADVISABLE FOR THE CONTOL OF BANK EROSION OF
STREAMS IN THE YAZOO BASIN, INCLUDING THE FOOTHILL AREA, AND WHERE
NECESSARY SUCH MEASURES SHALL COMPLEMENT SIMILAR WORKS PLANNED AND
CONSTRUCTED BY THE SOIL CONSERVATION SERVICE AND BE LIMITED TO THE AREAS
OF RESPONISBILITY MUTUALLY AGREEABLE TO THE DISTRICT ENGINEER AND THE
STATE CONSERVATIONIST.
OPERATION AND MAINTENANCE, GENERAL
FOR EXPENSES NECESSARY FOR THE PRESERVATION, OPERATION, MAINTENANCE,
AND CARE OF EXISTING RIVER AND HARBOR, FLOOD CONTROL, AND RELATED WORKS,
INCLUDING SUCH SUMS AS MAY BE NECESSARY FOR THE MAINTENANCE OF HARBOR
CHANNELS PROVIDED BY A STATE, MUNICIPALITY OR OTHER PUBLIC AGENCY,
OUTSIDE OF HARBOR LINES, AND SEVING ESSENTIAL NEEDS OF GENERAL COMMERCE
AND NAVIGATION; ADMINISTRATION OF LAWS PERTAINING TO PRESERVATION OF
NAVIGABLE WATERS; SURVEYS AND CHARTING OF NORTHERN AND NORTHWESTERN
LAKES AND CONNECTING WATERS; CLEARING AND STRAIGHTENING CHANNELS; AND
REMOVAL OF OBSTRUCTIONS TO NAVIGATION; $446,577,000, TO REMAIN
AVAILABLE UNTIL EXPENDED.
FLOOD CONTROL AND COSTAL EMERGENCIES
FOR EXPENSES NECESSARY FOR EMERGENCY FLOOD CONTOL, HURRICANE, AND
SHORE PROTECTION ACTIVITIES, AS AUTHORIZED BY SECTION 5 OF THE FLOOD
CONTROL ACT, APPROVED AUGUST 18, 1941, AS AMENDED, //69 STAT. 186; 76
STAT. 1194, 33 USC 701N.// $15,000,000, TO REMAIN AVAILABLE UNTIL
EXPENDED.
GENERAL EXPENSES
FOR EXPENSES NECESSARY FOR GENERAL ADMINISTRATION AND RELATED
FUNCTIONS IN THE OFFICE OF THE CHIEF OF ENGINEERS AND OFFICES OF THE
DIVISION ENGINEERS; ACTIVITIES OF THE BOARD OF ENGINEERS FOR RIVERS AND
HARBORS AND THE COASTAL ENGINEERING RESEARCH CENTER; COMMERCIAL
STATISTICS; AND MISCELLANEOUS INVESTIGATIONS; $38,800,000.
SPECIAL RECREATION USE FEES
FOR CONSTRUCTION, OPERATION, AND MAINTENANCE OF OUTDOOR RECREATION
FACILITIES, INCLUDING COLLECTION OF SPECIAL RECREATION USE FEES, TO
REMAIN AVAILABLE UNTIL EXPENDED, $700,00, TO BE DERIVED FROM THE SPECIAL
ACCOUNT ESTABLISHED BY THE LAND AND WATER CONSEVATION ACT OF 1965, AS
AMENDED (16 U.S.C. 4601): //86 STAT. 459, 16 USC 4601 - 6A.// PROVIDED,
THAT NOT MORE THAN 40 PER CENTUM OF THE FOREGOING AMOUNT SHALL BE
AVAILABLE FOR THE ENHANCEMENT OF THE FEE COLLECTION SYSTEM ESTABLISHED
BY SECTION 4 OF SUCH ACT, INCLUDING THE PROMOTION AND ENFORCEMENT
THEREOF.
ADMINISTRATIVE PROVISIONS
APPROPRATIONS IN THIS TITLE SHALL BE AVAILABLE FOR EXPENSES OF
ATTENDANCE BY MILITARY PERSONNEL AT MEETINGS IN THE MANNER AUTHORIZED BY
5 U.S.C. 4110, //80 STAT. 436.// UNIFORMS, AND ALLOWANCES THEREFOR,
AUTHORIZED BY LAW (5 U.S.C. 5901 - 5902), //80 STAT. 508; 81 STAT.
206.// AND FOR PRINTING, EITHER DURING A RECESS OR SESSION OF CONGRESS,
OF SURVEY REPORTS AUTHORIZED BY LAW, AND SUCH SURVEY REPORTS AS MAY BE
PRINTED DURING A RECESS OF CONGRESS SHALL BE PRINTED, WITH
ILLUSTRATIONS, AS DOCUMENTS OF THE NEXT SUCCEEDING SESSION OF CONGRESS;
AND DURING THE CURRECT FISCAL YEAR THE REVOLVING FUND, CORPS OF
ENGINEERS, SHALL BE AVAILABLE FOR PURCHASE (NOT TO EXCEED TWO HUNDRED
AND FORTY-THREE FOR REPLACEMENT ONLY), AND HIRE OF PASSENGER MOTOR
VEHICLES: PROVIDED, THAT THE TOTAL CAPITAL OF THE REVOLVING FUND SHALL
NOT EXCEED $228,000,000.
BUREAU OF RECLAMATION
FOR CARRYING OUT THE FUNCTIONS OF THE BUREAU OF RECLAMATION AS
PROVIDED IN THE FEDERAL RECLAMATION LAWS (ACT OF JUNE 17, 1902, 32 STAT.
388, //43 USC 371 AND NOTE.// AND ACTS AMENDATORY THEREOF OR
SUPPLEMENTARY THERETO) AND OTHER ACTS APPLICABLE TO THAT BUREAU, AS
FOLLOWS:
GENERAL INVESTIGATIONS
FOR ENGINEERING AND ECONOMIC INVESTIGATIONS OF PROPOSED FEDERAL
RECLAMATION PROJECTS AND STUDIES OF WATER CONSERVATION AND DEVELOPMENT
PLANS AND ACTIVITIES PRELIMINARY TO THE RECONSTRUCTION, REHABILITATION
AND BETTERMENT, FINANCIAL ADJUSTMENT, OR EXTENTION OF EXISTING PROJECTS,
TO REMAIN AVAILABLE UNTIL EXPENDED, $19,427,000: PROVIDED, THAT NONE OF
THIS APPROPRIATION SHALL BE USED FOR MORE THAN ONE-HALF OF THE COST OF
AN INVESTIGATION REQUESTED BY A STATE, MUNICIPALITY, OR OTHER INTEREST:
PROVIDED FURTHER, THAT $400,000 OF THIS APPROPRIATION SHALL BE
TRANSFERRED TO THE UNITED STATES FISH AND WILDLIFE SERVICE FOR STUDIES,
INVESTIGATIONS, AND REPORTS THEREON AS REQUIRD BY THE FISH AND WILDLIFE
COORDINATION ACT OF 1958 (72 STAT. 563 - 565) //16 USC 661 NOTE.// TO
PROVIDE THAT WILDLIFE CONSERVATION SHALL RECEIVE EQUAL CONSIDERATION AND
BE COORDINATED WITH OTHER FEATURES OF WATER-RESOURCE DEVELOPMENT
PROGRAMS OF THE BUREAU OF RECLAMATION.
CONSTURCTION AND REHABILITATION
FOR CONSTRUCTION AND REHABILITATION OF AUTHORIZED RECLAMATION
PROJECTS OR PARTS THEREOF (INCLUDING POWER TRANSMISSION FACILITIES) AND
FOR OTHER RELATED ACTIVITIES, AS AUTHORIZED BY LAW, TO REMAIN AVAILABLE
UNTIL EXPENDED, $244,123,000, OF WHICH $115,000,000 SHALL BE DERIVED
FROM THE RECLAMATION FUND: PROVIDED, THAT NO PART OF THIS APPROPRIATION
SHALL BE USED TO INITIATE THE CONSTRUCTION OF TRANSMISSION FACILITIES
WITHIN THOSE AREAS COVERED BY POWER WHEELING SERVICE CONTRACTS WHICH
INCLUDE PROVISION FOR SERVICE TO FEDERAL ESTABLISHMENTS AND PREFERRED
CUSTIOMERS, EXCEPT THOSE TRANSMISSION FACILITIES FOR WHICH CONSTRUCTION
FUNDS HAVE BEEN HERETOFORE APPROPRIATED, THOSE FACILITIES WHICH ARE
NECESSARY TO CARRY OUT THE TERMS OF SUCH CONTRACTS OR THOSE FACILITIES
FOR WHICH THE SECRETARY OFT HE INTERIOR FINDS THE WHEELING AGENCY IS
UNABLE OR UNWILLING TO PROVIDE FOR THE INTEGRATION OF FEDERAL PROJECTS
OR FOR SERVICE TO A FEDERL ESTABLISHMENT OR PREFERRED CUSTOMER:
PROVIDED FURTHER, THAT THE FINAL POINT OF DISCHARGE FOR THE INTERCEPTOR
DRAIN FOR THE SAN LUIS UNIT SHALL NOT BE DETERMINED UNTIL DEVELOPMENT BY
THE SECRETARY OF THE INTERIOR AND THE STATE OF CALIFORNIA OF A PLAN,
WHICH SHALL CONFORM WITH THE WATER QUALITY STANDARDS OF THE STATE OF
CALIFORNIA AS APPROVED BY THE ADMINISTRATOR OF THE ENVIRONMENTAL
PROTECTION AGENCY, TO MINIMIZE ANY DETRIMENTAL EFFECT OF THE SAN LUIS
DRAINAGE WATERS.
UPPER COLORADO RIVER STORAGE PROJECT
FOR THE UPPER COLORADO RIVER STORAGE PROJECT, AS AUTHORIZED BY THE
ACT OF APRIL 11, 1956, AS AMENDED (43 U.S.C. 620D), //70 STAT. 107.// TO
REMAIN AVAILABLE UNTIL EXPENDED, $24,621,000, OF WHICH $22,967,000 SHALL
BE AVAILABLE FOR THE "UPPER COLORADO RIVER BASIN FUND" AUTHORIZED BY
SECTION 5 OF SAID ACT OF APRIL 11, 1956, AND $1,654,000 SHALL BE
AVAILABLE FOR CONSTRUCTION OF RECREATIONAL AND FISH AND WILDLIFE
FACILITIES AUTHORIZED BY SECTION 8 //43 USC 620G.// THEREOF, AND MAY BE
EXPENDED BY BUREAUS OF THE DEPARTMENT THROUGH OR IN COOPERATION WITH
STATE OR OTHER FEDERAL AGENCIES, AND ADVANCES TO SUCH FEDERAL AGENCIES
ARE HEREBY AUTHORIZED: PROVIDED, THAT NO PART OF THE FUNDS HEREIN
APPROVED SHALL BE AVAILABLE FOR CONSTRUCTION OR OPERATION OF FACILITIES
TO PREVENT WATERS OF LAKE POWELL FROM ENTERING ANY NATIONAL MONUMENT.
COLURADO RIVER BASIN PROJECT
FOR ADVANCES TO THE LOWER COLORADO RIVER BASIN DEVELOPMENT FUND, AS
AUTHORIZED BY SECTION 403 OF THE ACT OF SEPTEMBER 30, 1968 (82 STAT.
894), //43 USC 1543.// FOR THE CONSTRUCTION, OPERATION, AND MAINTENANCE
OF PROJECTS AUTHORIZED BY TITLE III OF SAID ACT, //43 USC 1512.// TO
REMAIN AVAILABLE UNTIL EXPENDED $55,800,000, OF WHICH $32,800,000 IS FOR
LIQUIDATION OF CONTRACT AUTHORITY PROVIDED BY SECTION 303 (B) OF SAID
ACT. //43 USC 1523.//
COLORADO RIVER BASIN SALINITY CONTROL PROJECTS
FOR CONSTRUCTION, OPERATION AND MAINTENANCE OF PROJECTS AUTHORIZED BY
THE ACT OF JUNE 24, 1974, PUBLIC LAW 93 - 320, //ANTE, P. 266.// TO
REMAIN AVAILALBE UNTIL EXPENDED, $27,650,000.
OPERATION AND MAINTENANCE
FOR OPERATION AND MAINTENANCE OF RECLAMATION PROJECTS OR PARTS
THEREOF AND OTHER FACILITIES, AS AUTHORIZED BY LAW; AND FOR A SOIL AND
MOISTURE CONSERVATION PROGRAM ON LANDS UNDER THE JURISDICTION OF THE
BUREAU OF RECLAMATION, PURSUANT TO LAW, $97,000,000, OF WHICH
$80,730,000 SHALL BE DERIVED FROM THE RECLAMATION FUND AND $3,218,000
SHALL BE DERIVED FROM THE COLORADO RIVER DAM FUND: PROVIDED, THAT FUNDS
ADVANCED BY WATER USERS FOR OPERATION AND MAINTENANCE OF RECLAMATION
PROJECTS OR PARTS THEREOF SHALL BE DEPOSITED TO THE CREDIT OF THIS
APPROPRIATION AND MAY BE EXPENDED FOR THE SAME OBJECTS AND IN THE SAME
MANNER AS SUMS APPROPRIATED HEREIN MAY BE EXPENDED, AND THE UNEXPENDED
BALANCES OF SUCH ADVANCES SHALL BE CREDITED TO THE APPROPRIATION FOR THE
NEXT SUCCEEDING FISCAL YEAR: PROVIDED FURTHER, THAT NO PART OF THE
FUNDS APPROPRIATED HEREIN SHALL BE USED DIRECTLY OR INDIRECTLY FOR THE
OPEATION OF THE NEWLANDS RECLANATION PROJECT IN THE STATE OF NEVADA.
LOAN PROGRAM
FOR LOANS TO IRRIGATION DISTRICTS AND OTHER PUBLIC AGENCIES FOR
CONSTRUCTION OF DISTRIBUTION SYSTEMS ON AUTHORIZED FEDERAL RECLAMATION
PROJECTS, AND FOR LOANS AND GRANTS TO NON-FEDERAL AGENCIES FOR
CONSTRUCTION OF PROJECTS, AS AUTHORIZED BY THE ACTS OF JULY 4, 1955, AS
AMENDED (43 U.S.C. 421A - 421D), //86 STAT. 804.// AND AUGUST 6, 1956
(43 U.S.C. 422A - 422K), AS AMENDED, //70 STAT. 1044; 85 STAT. 488.//
INCLUDING EXPENSES NECESSARY FOR CARRYING OUT THE PROGRAM, $13,825,000,
TO REMAIN AVAILABLE UNTIL EXPENDED: PROVIDED, THAT ANY CONTRACT UNDER
THE ACT OF JULY 4, 1955 (69 STAT. 244), AS AMENDED, NOT YEAT EXECUTED BY
THE SECRETARY, WHICH CALLS FOR THE MAKING OF LOANS BEYOND THE FISCAL
YEAR IN WHICH THE CONTRACT IS ENTERED INTO SHALL BE MADE ONLY ON THE
SAME CONDITIONS AS THOSE PRESCRIBED IN SECTION 12 OF THE ACT OF AUGUST
4, 1939 (53 STAT. 1187, 1197). //43 USC 388.//
EMERGENCY FUND
FOR AN ADDITIONAL AMOUNT FOR THE "EMERGENCY FUND", AS AUTHORIZED BY
THE ACT OF JUNE 26, 1948 (43 U.S.C. 502), //LI STAT. 1052.// TO REMAIN
AVAILABLE UNTIL EXPENDED FOR THE PRUPOSES SPECIFIED IN SAID ACT,
$600,000, TO BE DERIVED FROM THE RECLAMATION FUND.
GENERAL ADMINISTRATIVE EXPENSES
FOR NECESSARY EXPENSES OF GENERAL ADMINISTRATION AND RELATED
FUNCTIONS IN THE OFFICES OF THE COMMISSIONER OF RECLAMATION AND IN THE
REGIONAL OFFICES OF THE BUREAU OF RECLAMATION, $20,300,000, TO BE
DERIVED FROM THE RECLAMATION FUND AND TO BE NONREIMBURSABLE PURSUANT TO
THE ACT OF APRIL 19, 1945 (43 U.S.C. 377): //59 STAT. 54.// PROVIDED,
THAT NO PART OF ANY OTHER APPROPRIATION IN THIS ACT SHALL BE AVAILABLE
FOR ACTIVITIES OR FUNCTIONS BUDGETED FOR THE CURRENT FISCAL YEAR AS
GENERAL ADMINISTRATIVE EXPENSES.
SPECIAL FUNDS
SUMS HEREIN REFERRED TO AS BEING DERIVED FROM THE RECLAMATION FUND,
THE COLORADO RIVER DAM FUND, OR THE COLORADO RIVER DEVELOPMENT FUND, ARE
APPROPRIATED FROM THE SPECIAL FUNDS IN THE TREASURY CREATED BY THE ACT
OF JUNE 17, 1902 (43 U.S.C. 391), //32 STAT. 388.// THE ACT OF DECEMBER
21, 1928 (43 U.S.C. 617A), //45 STAT. 1057.// AND THE ACT OF JULY 19,
1940 (43 U.S.C. 618A), //54 STAT. 774.// RESPECTIVELY. SUCH SUMS SHALL
BE TRANSFERRED, UPON REQUEST OF THE SECRETARY, TO BE MERGED WITH AND
EXPENDED UNDER THE HEADS HEREIN SPECIFIED; AND THE UNEXPENDED BALANCES
OF SUMS TRANSFERRED FOR EXPENDUTURE UNDER THE HEADS "OPERATION AND
MAINTENANCE" AND "GENERAL ADMINISTRATIVE EXPENSES" SHALL REVERT AND BE
CREDITED TO THE SPECIAL FUND FROM WHICH DERIVED.
ADMINISTRATIVE PROVISIONS
APPROPRIATIONS TO THE BUREAU OF RECLAMATION SHALL BE AVAILABLE FOR
PURCHASE OF NOT TO EXCEED THIRTY-FOUR PASSENGER MOTOR VEHICLES FOR
REPLACEMENT ONLY; PURCHSE OF ONE AIRCRAFT FOR REPLACEMENT ONLY;
PAYMENT OF CLAIMS FOR DAMAGES TO OR LOSS OF PROPERTY, PERSONAL INJURY,
OR DEATH ARISING OUT OF ACTIVITIES OF THE BUREAU OF RECLAMATION;
PAYMENT, EXCEPT AS OTHERWISE PROVIDED FOR, OF COMPENSATION AND EXPENSES
OF PERSONS ON THE ROLLS OF BUREAU OF RECLAMATION APPOINTED AS AUTHORIZED
BY LAW TO REPRESENT THE UNITED STATES IN THE NEGOTIATIONS AND
ADMINISTRATION OF INTERSTATE COMPACTS WITHOUT REIMBURSEMENT OR RETURN
UNDER THE RECLAMATION LAWS; //32 STAT. 388, 43 USC 371 AND NOTE.//
REQARDS FOR INFORMATION OR EVIDENCE CONCERNIGN VIOLATIONS LF LAW
INVOLVING PROPERTY UNDER THE JURISDICTION OF THE BUREAU OF RECLAMATION;
PERFORMANCE OF THE FUNCTIONS SPECIFIED UNDER THE HEAD "OPERATION AND
MAINTENANCE ADMINISTRATION", BUREAU OF RECLAMATION, IN THE INTERIOR
DEPARTMENT APPROPRIATION ACT, 1945; //58 STAT. 487.// PREPARATION AND
DISSEMINATION OF USEFUL INFORMATION INCLUDING RECORDINGS, PHOTOGRAPHS,
AND PHOTOGRAPHIC PRINTS; AND STUDIES OF RECREATIONAL USES OF RESERVOIR
AREAS, AND INVESTIGATION AND RECOVERY OF ARCHEOLOGICAL AND
PALEONTOLOGICAL REMAINS IN SUCH AREAS IN THE SAME MANNER AS PROVIDED FOR
IN THE ACT OF AUGUST 21, 1935 (16 U.S.C. 461 - 467): //49 STAT. 666.//
PROVIDED, THAT NO PART OF ANY APPROPRIATION MADE HEREIN SHALL BE
AVAILABLE PURSUANT TO THE ACT OF APRIL 19, 1945 (43 U.S.C. 377), //59
STAT. 54.// FOR EXPENSES OTHER THAN THOSE INCURRED ON BEHALF OF SPECIFIC
RECLAMATION PROJECTS EXCEPT "GENERAL ADMINISTRATIVE EXPENSES" AND
AMOUNTS PROVIDED FOR RECONNAISSANCE, BASIN SURVEYS, AND GENERAL
ENGINEERING AND RESEARCH UNDER THE HEAD "GENERAL INVESTIGATIONS".
SUMS APPROPRIATED HEREIN WHICH ARE EXPENDED IN THE PERFORMANCE OF
REIMBURSABLE FUNCTIONS OF THE BUREAU OF RECLAMATION SHALL BE RETURNABLE
TO THE DEXTENT AND IN THE AMNNER PROVIDED BY LAW.
NO PART OF ANY APPROPRIATION FOR THE BUREAU OF RECLAMATION, CONTAINED
IN THIS ACT OR IN ANY PRIOR ACT, WHICH REPRESENTS AMOUNTS EARNED UNDER
THE TERMS OF A CONTRACT BUT REMAINING UNPAID, SHALL BE OBLIGATED FOR ANY
OTHER PURPOSE, REGARDLESS OF WHEN SUCH AMOUNTS ARE TO BE PAID:
PROVIDED, THAT THE INCURRING OF ANY OBLIGAION PROHIBITED BY THIS
PARAGRAPH SHALL BE DEEMED A VIOLATION OF SECTION 3679 OF THE REVISED
STATUTES, AS AMENDED (31 U.S.C. 665).
NO FUNDS APPROPRIATED TO THE BUREAU OF RECLAMATION FOR OPERATION AND
MAINTENANCE, EXCEPT THOSE DERIVED FROM ADVANCES BY WATER USERS, SHALL BE
USED FOR THE PARTICUALR BENEFITS OF LANDS (A) WITHIN THE BOUNDARIES OF
AN IRRIGATION DISTRICT, (B) OF ANY MEMBER OF A WATER USERS'
ORGANIZATION, OR (C) OF ANY INDIVIDUAL WHEN SUCH DISTRICT, ORGANIZATION,
OR INDIVIDUAL IS IN ARREARS FOR MORE THAN TWELVE MONTHS IN THE PAYMENT
OF CHARGES DUE UNDER A CONTRACT ENTERED INTO WITH THE UNITED STATES
PURSUANT TO LAWS ADMINISTERED BY THE BUREAU OF RECLAMATION. //43 USC
377A.//
NOT TO EXCEED $225,000 MAY BE EXPENDED FROM THE APPROPRAITION
"CONSTRUCTION AND REHABILITATION" FOR WORK BY FORCE ACCOUNT ON ANY ONE
PROJECT OR PICK-SLOAN MISSIURI BASIN PROGRAM UNIT AND THEN ONLY WHEN
SUCH WORK IS UNSUITABLE FOR CONTRACT OR NO ACCEPTABLE BID HAS BEEN
RECEIVED AND, OTHER THAN OTHERWISE PROVIDED IN THIS PARAGRAPH OR AS MAY
BE NECESSARY TO MEET LOCL EMERGENCIES, NOT TO EXCEED 12 PER CENTUM OF
THE CONSTRUCTION ALLOTMENT FOR ANY PROJECT FROM THE APPROPRIATION
"CONSTRUCTION ADN REHABILITATION" CONTAINED IN THIS ACT, SHALL BE
AVAILABLE FOR CONSTRUCTION WORK BY FORCE ACCOUNT: PROVIDED, THAT THIS
PARAGRAPH SHALL NOT APPLY TO WORK PERFORMED UNDER THE REHABILITATION AND
BETTERMENT ACT OF 1949 (63 STAT. 724). //62 STAT. 11, 43 USC 504 AND
NOTE.//
GENERAL INVESTIGATIONS
FOR ENGINEERING AND ECONOMIC INVESTIGATIONS TO PROMOTE THE
DEVELOPMENT AND UTILIZATION OF THE WATER, POWER, AND RELATED RESOURCES
OF ALASKA, $540,000, TO REMAIN AVAILABLE UNTIL EXPENDED: PROVIDED, THAT
$10,000 OF THIS APPROPRIATION SHALL BE TRANSFERRED TO THE UNITED STATES
FISH AND WILDLIFE SERVICE FOR STUDIES, INVESTIGATIONS, AND REPORTS
THEREON, AS REQUIRED BY THE FISH AND WILDLIFE COORDINATION ACT OF 1958
(72 STAT. 563 - 565). //16 USC 661 NOTE.//
OPERATION AND MAINTENANCE
FOR NECESSARY EXPENSES OF OPERATION AND MAINTENANCE OF PROJECTS IN
ALASKA AND OF MARKETING ELECTRIC POWER AND ENERGY, $760,000.
CONSTRUCTION
FOR CONSTRUCTION AND ACQUISITION OF TRNASMISSION LINES, SUBSTATIONS,
AND APPURTENANT FACILITIES, AS AUTHORIZED BY LAW, $128,000,000, TO
REMAIN AVAILABLE UNTIL EXPENDED: PROVIDED, THAT THE AMOUNT APPROPRIATED
FOR "CONSTRUCTION" IN THE SPECIAL ENERGY RESEARCH AND DEVELOPMENT
APPROPRIATION ACT, 1975, //ANTE, P. 279.// SHALL BE MERGED, WITHOUT
LIMITATION, WITH THIS APPROPRIATION.
OPERATION AND MAINTENANCE
FOR NECESSARY EXPENSES OF OPERATION AND MAINTENANCE OF THE BONNEVILLE
TRANSMISSION SYSTEM AND OF MARKETING ELECTRIC POWER AND ENERGY,
$38,500,000.
ADMINISTRATIVE PROVISIONS
APPROPRIATIONS OF THE BONNEVILLE POWER ADMINISTRATION SHALL BE
AVAILABLE TO CARRY OUT ALL THEDUTIES IMPOSED UPON THE ADMINISTRATOR
PURSUANT TO LAW. APPROPRIATIONS MADE HEREIN TO THE BONNEVILLE POWER
ADMINISTRATION SHALL BE AVAILABLE IN ONE FUND, EXCEPT THAT THE
APPROPRIATION HEREIN MDE FOR OPERATION AND MAINTENANCE SHALL BE
AVAILABLE ONLY FOR THE SERVICE OF THE CURRENT FISCAL YEAR.
OTHER THAN AS MAY BE NECESSARY TO MEET LOCAL EMERGENCIES, NOT TO
EXCEED 12 PER CENTUM OF THE APPROPRIATION FOR CONSTRUCTION HEREIN MADE
FOR THE BONNEVILLE POWER ADMINISTRATION SHALL BE AVAILABLE FOR
CONSTRUCTION WORK BY FORCE ACCOUNT OR ON A HIRED-LABOR BASIS.
OPERATION AND MAINTENANCE
FOR NECESSARY EXPENSES OF OPERATION AND MAINTENANCE OF POWER
TRANSMISSION FACILITIES AND OF MARKETING ELECTRIC POWER AND ENERGY
PURSUANT TO THE PROVISIONS OF SECTION 5 OF THE FLOOD CONTROL ACT OF 1944
(16 U.S.C. 825S), //58 STAT. 890.// AS APPLIED TO THE SOUTHEASTERN POWER
AREA, $946,000.
CONSTRUCTION
FOR CONSTRUCTION AND ACQUISITION OF TRNASMISSION LINES, SUBSTATIONS,
AND APPURTENANT FACILITIES, AND FOR ADMINISTRATIVE EXPENSES CONNECTED
THEREWITH, IN CARRYING OUT THE PROVISIONS OF SECTION 5 OF THE FLOOD
CONTROL ACT OF 1944 (16 U.S.C. 825S), AS APPLIED TO THE SOUTHWESTERN
POWER AREA, $620,000, TO RMAIN AVAILABLE UNTIL EXPENDED.
OPERATION AND MAINTENANCE
FOR NECESSARY EXPENSES OF OPERATION AND MAINTENANCE OF POWER
TRANSMISSION FACILITIES AND OF MARKETING ELECTRIC POWER AND ENERGY
PURSUANT TO THE PROVISIONS OF SECTION 5 OF THE FLOOD CONTROL ACT OF 1944
(16 U.S.C. 825S), AS APPLIED TO THE SOUTHWESTERN POWER AREA, INCLUDING
PURCHASE OF NOT TO EXCEED ONE PASSENGER MOTOR VEHICLE FOR REPLACEMENT
ONLY, $5,795,000.
GENERAL PROVISIONS--DEPARTMENT OF THE INTERIOR
SEC. 301. APPROPRIATIONS IN THIS TITLE SHALL BE AVAILABLE FOR
EXPENDITURE OR TRNASFER (WITHIN EACH BUREAU OR OFFICE), WITH THE
APPROVAL OF THE SECRETARY, FOR THE EMERGENCY RECONSTRUCTION,
REPLACEMENT, OR REPAIR OF AIRCRAFT, BUILLDINGS, UTILITIES, OR OTHER
FACILITIES OR EQUIPMENT DAMAGED OR DESTROYED BY FIRE, FLOOD, STORM, OR
OTHER UNAVOIDABLE CAUSES: PROVIDED, THAT NO FUNDS SHALL BE MADE
AVAILABLE UNDER THIS AUTHORITY UNTIL FUNDS SPECIFICALLY MADE AVAILABLE
TO THE DEPARTMENT OF THE INTERIOR FOR EMERGENCIES SHALL HAVE BEEN
EXHAUSTED.
SEC. 302. THE SECRETARY MAY AUTHORIZE THE EXPENDITURE OR TRANSFER
(WITHIN EACH BUREAU OR OFFICE) OF ANY APPROPRIATION IN THIS TITLE, IN
ADDITION TO THE AMOUNTS INCLUDED IN THE BUDGET PROGRAMS OF THE SEVERAL
AGENCIES, FOR THE SUPPRESSION OR EMERGENCY PREVENTION OF FOREST OR RANGE
FIRES ON OR THREATENING LANDS UNDER JURISDICTION OF THE DEPARTMENT OF
THE INTERIOR.
SEC. 303. APPROPRIATIONS IN THIS TITLE SHALL BE AVAILABLE FOR
OPERATION OF WAREHOUSES, GARAGES, SHOPS, AND SIMILAR FACILITIES,
WHEREVER CONSOLIDATION OF ACTIVITIES WILL CONTRIBUTE TO EFFICIENCY, OR
ECONOMY, AND SAID APPROPRIATIONS SHALL BE REIMBURSED FOR SERVICES
RENDERED TO ANY OTHER ACTIVITY IN THE SAME MANNER AS AUTHORIZED BY THE
ACT OF JUNE 30, 1932 (31 U.S.C. 686): //47 STAT. 417.// PROVIDED, THAT
REIMBURSEMENTS FOR COSTS OF SUPPLIES, ATERIALS, AND EQUIPMENT, AND FOR
SERVICES RENDERED MAY BE CREDITED TO THE APPROPRIATION CURRENT AT THE
TIME SUCH REIMBURSEMENTS ARE RECEIVED.
SEC. 304. NO PART OF ANY FUNDS MADE AVAILABLE BY THIS ACT TO THE
SOUTHWESTERN POWER ADMINISTRATION MAY BE MADE AVAILABLE TO ANY OTHER
AGENCY, BUREAU, OR OFFICE FOR ANY PURPOSES OTHER THAN FOR SERVICES
RENDERED PURSUANT TO LAW TO THE SOUTHWESTERN POWER ADMINISTRATION.
SALARIES AND EXPENSES
FOR NECESSARY EXPENSES OF THE FEDERAL COCHAIRMAN AND HIS ALTERNATE ON
THE APPALACHIAN REGIONAL COMMISSION AND FOR PAYMENT OF THE FEDERAL SHARE
OF THE ADMINISTRATIVE EXPENSES OF THE COMMISSION, INCLUDING SERVICES AS
AUTHORIZED BY 5 U.S.C. 310., //80 STAT. 416.// AND HIRE OF PASSENGER
MOTOR VEHICLES, $1,740,000.
APPALACHIAN REGIONAL DEVELOPMENT PROGRAMS
FOR EXPENSES NECESSARY TO CARRY OUT THE PROGRAMS AUTHORIZED BY THE
APPALACHIAN REGIONAL DEVELOPMENT ACT OF 1965, AS AMENDED, //79 STAT. 5,
40 USC APP. 1.// EXCEPT EXPENSES AUTHORIZED BY SECTION 105 OF SAID ACT,
INCLUDING SERVICES AS AUTHORIZED BY 5 U.S.C. 310., AND HIRE OF PASSENGER
MOTOR VEHICLES, TO REMAIN AVAILABLE UNTIL EXPENDED, $293,500,000, OF
WHICH $160,000,000 SHALL BE AVAILABLE FOR THE APPALACHIAN DEVELOPMENT
HIGHWAY SYSTEM, BUT NO PART OF ANY APPROPRAITION IN THIS ACT SHALL BE
AVAILABLE FOR EXPENSES IN CONNECTION WITH COMMITMENTS FOR CONTRACTS OR
GRANTS FOR THE APPALACHIAN DEVELOPMENT HIGHWAY SYSTEM IN EXCESS OF THE
TOTAL AMOUNT HEREIN AND HERETOFORE APPROPRIATED.
SALARIES AND EXPENSES
FOR EXPENSES NECESSARY TO CARRY OUT THE FUNCTIONS OF THE UNITED
STATES MEMBER OF THE DELAWARE RIVER BASIN COMMISSION, AS AUTHORIZED BY
LAW (75 STAT. 716), $77,500.
CONTRIBUTION TO DELAWARE RIVER BASIN COMMISSION
FOR PAYMENT OF THE UNITED STATES SHARE OF THE CURRENT EXPENSES OF THE
DELAWARE RIVER BASIN COMMISSION, AS AUTHORIZED BY LAW (75 STAT. 706,
707), $238,000.
SALARIES AND EXPENSES
FOR EXPENSES NECESSARY FOR THE WORK OF THE COMMISSION, AS AUTHORIZED
BY LAW, INCLUDING HIRE OF PASSENGER MOTOR VEHICLES, SERVICES AS
AUTHORIZED BY 5 U.S.C. 3109, //80 STAT. 416.// AND NOT TO EXCEED $1,000
FOR OFFICIAL RECEPTION AND REPRESENTATION EXPENSES, $32,100,000.
CONTRIBUTION TO INTERSTATE COMMISSION ON THE POTOMAC RIVER
BASIN
TO ENABLE THE SECRETARY OF THE TREASURY TO PAY IN ADVANCE TO THE
INTERSTATE COMMISSION ON THE POTAOMAC RIVER BASIN THE FEDERAL
CONTRIBUTION TOWARD THE EXPENSES OF THE COMMISSION DURING THE CURRENT
FISCAL YEAR IN THE ADMINISTRATION OF ITS BUSINESS IN THE CONSERVANCY
DISTRICT ESTABLISHED PURSUANT TO THE ACT OF JULY 11, 1940 (54 STAT.
748), AS AMENDED BY THE ACT OF SEPTEMBER 25, 1970 (PUBLIC LAW 91 - 407),
//84 STAT. 856, 33 USC 567B-1.// $52,000.
SALARIES AND EXPENSES
FOR EXPENSES NECESSARY TO CARRY OUT THE FUNCTIONS OF THE UNITED
STATES MEMBER OF THE SUSQUEHANNA RIVER BASIN COMMISSION, AS AUTHORIZED
BY LAW (84 STAT. 1541), $77,500.
CONTRIBUTION TO SUSQUEHANNA RIVER BASIN COMMISSION
FOR PAYMENT OF THE UNITED STATES SHARE OF THE CURRENT EXPENSES OF THE
SUSQUEHANNA RIVER BASIN COMMISSION, AS AUTHORIZED BY LAW (84 STAT.
1530, 1531), $150,000.
PAYMENT TO TENNESSEE VALLEY AUTHORITY FUND
FOR THE PURPOSE OF CARRYING OUT THE PROVISIONS OF THE TENNESSEE
VALLEY AUTHORITY ACT OF 1933, AS AMENDED (16 U.S.C., CH. 12A), //48
STAT. 58, 16 USC 831.// INCLUDING HIRE, MAINTENANCE, AND OPERATION OF
AIRCRAFT, AND HIRE OF PASSENGER MOTOR VEHICLES, $77,400,000, TO REMAIN
AVAILABLE UNTIL EXPENDED: PROVIDED, THAT THIS APPROPRAITION AND OTHER
FUNDS AVAILABLE TO THE TENNESSEE VALLEY AUTHORITY SHALL BE AVAILABLE FOR
THE PURCHASE OF NOT TO EXCEED ONE AIRCRAFT FOR REPLACEMENT ONLY, AND THE
PURCHASE OF NOT TO EXCEED TWO HUNDRED AND TWENTY-FOUR PASSENGER MOTOR
VEHICLES FOR REPLACEMENT ONLY.
WATER RESOURCES PLANNING
FOR EXPENSES NECESSARY IN CARRYING OUT THE PROVISIONS OF THE WATER
RESOURCES PLANNING ACT OF 1965 (42 U.S.C. 1962 - 1962D - 3), //79 STAT.
244.// INCLUDING SERVICES AS AUTHORIZED BY 5 U.S.C. 3109, BUT AT RATES
NOT TO EXCEED $100 PER DIEM FOR INDIVIDUALS (42 U.S.C. 1962A - 4(5)),
AND HIRE OF PASSENGER MOTOR VEHICLES (42 U.S.C. 196A - 4(6)),
$9,775,000, TO REMAIN AVAILABLE UNTIL EXPENDED, INCLUDING $1,242,000,
FOR CARRYING OUT THE PROVISIONS OF TITLE I AND ADMINISTERING THE
PROVISIONS OF TITLES II, III, AND IV OF THE ACT (42 U.S.C. 1962D(B)),
//86 STAT. 578; 87 STAT. 140.// $2,183,000, FOR PREPARATION OF
ASSESSMENTS AND MANAGEMENT OF PLANS (42 U.S.C. 1962D(C), $1,350,000, FOR
EXPENSES OF RIVER BASIN COMMISSIONS UNDER TITLE II OF THE ACT (42 U.S.C.
1962D(A)), AND $5,000,000 FOR GRANTS TO STATES UNDER TITLE III OF THE
ACT (42 U.S.C. 1962C(A)): //79 STAT. 251.// PROVIDED, THAT THE SHARE OF
THE EXPENSES OF ANY RIVER BASIN COMMISSION BORNE BY THE FEDERAL
GOVERNMENT PURSUANT TO TITLE II OF THE ACT SHALL NOT EXCEED $250,000
ANNUALLY FOR RECURRING OPERATING EXPENSES, INCLUDING THE SALARY AND
EXPENSES OF THE CHAIRMAN.
SEC. 501. NO PART OF ANY APPROPRIATION CONTAINED IN THIS ACT SHALL
REMAIN AVAILABLE FOR OBLIGATION BEYOND THE CURRENT FISCAL YEAR UNLESS
EXPRESSLY SO PROVIDED HEREIN.
SEC. 502. NO PART OF ANY APPROPRAITION CONTAINED IN THIS ACT SHALL
BE AVAILABLE FOR PAYING TO THE ADMINISTRATOR OF THE GENERAL SERVICES
ADMINISTRATION IN EXCESS OF 90 PER CENTUM OF THE STANDARD LEVEL USER
CHARGE ESTABLISHED PURSUANT TO SECTION 210(J) OF THE FEDERAL PROPERTY
AND ADMINISTRATIVE SERVICES ACT OF 194., AS AMENDED, //86 STAT. 219, 40
USC 490.// FOR SPACE AND SERVICES.
THIS ACT MAY BE CITED AS THE "PUBLIC WORKS FOR WATER AND POWER
DEVELOPMENT AND ATOMIC ENERGY COMMISSIONS APPROPRIATION ACT, 1975".
LEGISLATIVE HISTORY:
HOUSE REPORTS: NO. 93 - 1077 (COMM. ON APPROPRIATIONS) AND NO. 93 -
1274 (COMM. OF CONFERENCE).
SENATE REPORT NO. 93 - 1032 (COMM. ON APPROPRIATIONS).
CONGRESSIONAL RECORD, VOL. 120 (1974):
JUNE 6, CONSIDERED AND PASSED HOUSE.
AUG. 1, CONSIDERED AND PASSED SENATE, AMENDED.
AUG. 13, HOUSE AGREED TO CONFERENCE REPORT.
AUG. 15, SENATE AGREED TO CONFERENCE REPORT.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, VOL. 10, NO. 35:
AUG. 29, PRESIDENTIAL STATEMENT.
PUBLIC LAW 93-392, 88 STAT 781
BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE
UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT SECTION 8(A) OF THE
BOARD FOR INTERNATION BROADCASTING ACT OF 1973 (22 U.S.C., 2877(A)) IS
AMENDED-- //87 STAT. 460.//
(1) BY STRIKING OUT "$50,209,000 FOR FISCAL YEAR 1974" IN THE
FIRST SENTENCE AND INSERTING IN LIEU THEREOF "$49,990,000 FOR
FISCAL YEAR 1975, OF WHICH NOT LESS THAN $75,000 SHALL BE
AVAILABLE SOLEY TO INITIATE BROADCASTS IN THE ESTONIAN LANGUAGE
AND NOT LESS THAN $75,000 SHALL BE AVAILABLESOLELY TO INITIATE
BROADCASTS IN THE LATVIAN LANGUAGE"; AND
(2) BY STRIKING OUT "FISCAL YEAR 1974" IN THE SECOND SENTENCE
AND INSERTING IN LIEU THEREOF "FISCAL YEAR 1975".
LEGISLATIVE HISTORY:
HOUSE REPORT NO. 93 - 1180 ACCOMPANYING H.R. 14780 (COMM. ON FORIEGN
AFFAIRS).
SENATE REPORT NO. 93 - 1019 (COMM. ON FORIEGN RELATIONS).
CONGRESSIONAL RECORD, VOL. 120 (1974):
JULY 22, CONSIDERED AND PASSED SENATE.
AUG. 2, CONSIDERED AND PASSED HOUSE, AMENDED, IN LIEU OF H.R.,
14780.
AUG. 15, SENATE CONCURRED IN HOUSE AMENDMENT.
PUBLIC LAW 93-391, 88 STAT 768, DEPARTMENT OF TRANSPORTATION AND
RELATED AGENCIES APPROPRIATION
BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE
UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT THE FOLLOWING SUMS
ARE APPROPRIATED, OUT OF ANY MONEY IN THE TREASURY NOT OTHERWISE
APPROPRIATED, FOR THE DEPARTMENT OF TRANSPORTATION AND RELATED AGENCIES
FOR THE FISCAL YEAR ENDING JUNE 30, 1975, AND FOR OTHER PURPOSES,
NAMELY:
OFFICE OF THE SECRETARY
SALARIES AND EXPENSES
FOR NECESSARY EXPENSES OF THE OFFICE OF THE SECRETARY OF
TRANSPORTATION, INCLUDING NOT TO EXCEED $27,000 FOR ALLOCATION WITHIN
THE DEPARTMENT FOR OFFICIAL RECEPTION AND REPRESENTATION EXPENSES AS THE
SECRETARY MAY DETERMINE, $31,000,000: PROVIDED, THAT NOT TO EXCEED
$882,900 OF THE FUNDS PROVIDED UNDER THIS ACT SHALL BE AVAILABLE TO
ENABLE THE OFFICE OF THE SECRETARY TO LEASE AND MAINTAIN AUTOMOBILE
PARKING FACILITIES IN THE NASSIF BUILDING FOR EMPLOYEES OF THE
DEPARTMENT.
TRANSPORTATION PLANNING, RESEARCH, AND DEVELOPMENT
FOR NECESSARY EXPENSES FOR CONDUCTING TRANSPORTATION PLANNING,
RESEARCH, AND DEVELOPMENT ACTIVITIES, INCLUDING THE COLLECTION OF
NATIONAL TRANSPORTATION STATISTICS, TO REMAIN AVAILABLE UNTIL EXPENDED,
$28,000,000.
GRANTS-IN-AID FOR NATURAL GAS PIPELINE SAFETY
FOR GRANTS-IN-AID TO CARRY OUT A PIPELINE SAFETY PROGRAM, AS
AUTHORIZED BY SECTION 5 OF THE NATURAL GAS PIPELINE SAFETY ACT OF 1968
(49 U.S.C. 1674), //82 STAT. 722; 86 STAT. 616.// $1,200,000, TO REMAIN
AVAILABLE UNTIL EXPENDED.
OPERATING EXPENSES
FOR NECESSARY EXPENSES FOR THE OPERATION AND MAINTENANCE OF THE COAST
GUARD, NOT OTHERWISE PROVIDED FOR; PURCHASE OF NOT TO EXCEED SIXTEEN
PASSENGER MOTOR VEHICLES, FOR REPLACEMENT ONLY; AND RECREATION AND
WELFARD; $618,144,448, OF WHICH $179,448 SHALL BE APPLIED TO CAPEHART
HOUSING DEBT REDUCTION. //15 USC 92 NOTE.// PROVIDED, THAT THE NUMBER
OF AIRCRAFT ON HAND AT ANY ONE TIME SHALL NOT EXCEED ONE HUNDRED AND
SEVENTY-NINE EXCLUSIVE OF PLANES AND PARTS STORED TO MEET FUTURE
ATTRITION: PROVIDED FURTHER, THAT, WITHOUT REGARD TO ANY PROVISIONS OF
LAW OR EXECUTIVE ORDER PRESCRIBING MINIMUM FLIGHT REQUIREMENTS, COAST
GUARD REGULATIONS WHICH ESTABLISH PROFICIENCY STANDARDS AND MAXIMUM AND
MINIMUM FLYING HOURS FOR THIS PRUPOSE MANY PROVIDE FOR THE PAYMENT OF
FLIGHT PAY AT THE RATES PRESCRIBED IN SECTION 301 OF TITLE 37, UNITED
STATES CODE, TO CERTAIN MEMBERS OF THE COAST GUARD OTHERWISE ENTITLED TO
RECIEVE FLIGHT PAY DURING THE CURRENT FISCAL YEAR (1) WHO HAVE HELD
AERONAUTICAL RATINGS OR DESIGNATIONS FOR NOT LESS THAN YEARS, OR (2)
WHOSE PARTICULAR ASSIGNMENT OUTSIDE THE UNITED STATES OR IN ALASKA,
MAKES IT IMPRACTICAL TO PARTICIPATE IN REGULAR AERIAL FLIGHTS, OR WHO
HAVE BEEN ASSIGNED TO A COURSE OF INSTRUCTION OF 90 DAYS OR MORE:
PROVIDED FURTHER, THAT AMOUNTS EQUAL TO THE OBLIGATED BALANCES AGAINST
THE APPROPRIATIONS FOR "OPERATING EXPENSES" FOR THE TWO PRECEDING YEARS,
SHALL BE TRANSFERRED TO AND MERGED WITH THIS APPROPRIATION, AND SUCH
MERGED APPROPRIATION SHALL BE AVAILABLE AS ONE FUND, EXCEPT FOR
ACCOUNTING PURPOSES OF THE COAST GUARD, FOR THE PAYMENT OF OBLIGATIONS
PROPERLY INCURRED AGAINST SUCH PRIOR YEAR APPROPRIATIONS AND AGAINST
THIS APPROPRIATION.
ACQUISITION, CONSTRUCTION, AND IMPROVEMENTS
FOR NECESSARY EXPENSES OF ACQUISITION, CONSTRUCTION, REBUILDING, AND
IMPROVEMENT OF AIDS TO NAVIGATION, SHORE FACILITIES, VESSELS, AND
AIRCRAFT, INCLUDING EQUIPMENT RELATED THERETO; $112,307,000, TO REMAIN
AVAILABLE UNTIL JUNE 30, 1977.
ALTERATION OF BRIDGES
FOR NECESSARY EXPENSES FOR ALTERATION OF OBSTRUCTIVE BRIDGES;
$6,800,000, TO REMAIN AVAILABLE UNTIL EXPENDED.
RETIRED PAY
FOR RETIRED PAY, INCLUDING THE PAYMENT OF OBLIGATIONS THEREFOR
OTHERWISE CHARGEABLE TO LAPSED APPROPRIATIONS FOR THIS PURPOSE, AND
PAYMENTS UNDER THE RETIRED SERVICEMAN'S FAMILY PROTECTION AND SURVIVOR
BENEFIT PLANS; $95,850,000.
RESERVE TRAINING
FOR ALL NECESSARY EXPENSES FOR THE COAST GUARD RESERVE, AS AUTHORIZED
BY LAW; MAINTENANCE AND OPERATION OF FACILITIES; AND SUPPLIES,
EQUIPMENT, AND SERVICES; $29,000,000: PROVIDED, THAT AMOUNTS EQUAL TO
THE OBLIGATED BALANCES AGAINST THE APPROPRIATIONS FOR "RESERVE TRAINING"
FOR THE TWO PRECEDING YEATS SHALL BE TRANSFERRED TO AND MERGED WITH THIS
APPROPRIATION, AND SUCH MERGED APPROPRIATIONS SHALL BE AVAILABLE AS ONE
FUND, EXCEPT FOR ACCOUNTING PURPOSES OF THE COAST GUARD, FOR THE PAYMENT
OF OBLIGATIONS PROPERLY INCURRED AGAINST SUCH PRIOR YEAR APPROPRIATIONS
AND AGAINST THIS APPROPRIATION.
RESEARCH, DEVELOPMENT, TEST, AND EVALUATION
FOR NECESSAY EXPENSES, NOT OTHERWISE PROVIDED FOR, FOR BASIC AND
APPLIED SCIENTIFIC RESEARCH, DEVELOPMENT, TEST, AND EVALUATION;
MAINTENANCE, REHABILITATION, LEASE, AND OPERATION OF FACILITIES AND
WQUIPMENT, AS AUTHORIZED BY LAW; $17,500,000, TO REMAIN AVAILABLE UNTIL
EXPENDED.
STATE BOATING SAFETY ASSISTANCE
FOR FINANCIAL ASSISTANCE FOR STATE BOATING SAFETY PROGRAMS IN
ACCORDANCE WITH THE PROVISIONS OF THE FEDERAL BOAT SAFETY ACT OF 1971
(46 U.S.C. 1474 - 1480), //85 STAT. 213.// $6,000,000, TO REMAIN
AVAILABLE UNTIL EXPENDED.
OPERATIONS
FOR NECESSARY EXPENSES OF THE FEDERAL AVIATION ADMINISTRATION, NOT
OTHERWISE PROVIDED FOR, INCLUDING ADMINISTRATIVE EXPENSES FOR RESEARCH
AND DEVELOPMENT AND FOR ESTABLISHMENT OF AIR NAVIGATION FACILITIES, AND
CARRYING OUT THE PROVISIONS OF THE AIRPOSRT AND AIRWAY DEVELOPMENT ACT;
//84 STAT. 219, 49 USC 1701 NOTE.// PURCHASE OF FOUR PASSENGER MOTOR
VEHICLES FOR REPLACEMENT ONLY; AND PURCHASE AND REPAIR OF SKIS AND
SNOWSHOES; $1,375,500,000: PROVIDED, THAT THERE MAY BE CREDITED TO
THIS APPROPRIATION, FUNDS RECEIVED FROM STATES, COUNTIES,
MUNICIPALITIES, OTHER PUBLIC AUTHORITIES, AND PRIVATE SOURCES, FOR
EXPENSES INCURRED IN THE MAINTENANCE AND OPERATION OF AIR NAVIGATION
FACILITIES.
FACILITIES, ENGINEERING AND DEVELOPMENT
FOR NECESSARY EXPENSES OF THE FEDERAL AVIATION ADMINISTRATION, NOT
OTHERWISE PROVIDED FOR, AND FOR ACQUISITION AND MODERNIZATION OF
FACILITIES AND WQUIPMENT AND SERVICE TESTING IN ACCORDANCE WITH THE
PROVISIONS OF THE FEDERAL AVIATION ACT (49 U.S.C. 1301 - 1542), //72
STAT. 731.// INCLUDING CONSTRUCTION OF EXPERIMENTAL FACILITIES AND
ACQUISITION OF NECESSARY SITES BY LEASE OR GRANT, $12,250,000, TO REMAIN
AVAILABLE UNTIL EXPENDED: PROVIDED, THAT THERE MAY BE CREDITED TO THIS
APPROPRIATION, FUNDS RECEIVED FROM STATES, COUNTIES, MUNICIPALITIES,
OTHER PUBLIC AUTHORITIES, AND PRIVATE SOURCES, FOR EXPENSES INCURRED FOR
ENGINEERING AND DEVELOPMENT.
FACILITIES AND EQUIPMENT (AIRPORT AND AIRWAY TRUST FUND)
FOR NECESSARY EXPENSES, NOT OTHERWISE PROVIDED FOR; FOR ACQUISITION,
ESTABLISHMENT, AND IMPROVEMENT BY CONTRACT OR PURCHASE, AND HIRE OF AIR
NAVIGATION AND EXPERIMENTAL FACILITIES, INCLUDING INITIAL ACQUISITION OF
NECESSARY SITES BY LEASE OR GRANT; ENGINEERING AND SERVICE TESTING
INCLUDING CONSTRUCTION OF TEST FACILITIES AND ACQUISITION OF NECESSARY
SITES BY LEASE OR GRANT; CONSTRUCTION AND FURNISHING OF QUARTERS AND
RELATED ACCOMMODATIONS FOR OFFICERS AND EMPLOYEES OF THE FEDERAL
AVIATION ADMINISTRATION STATIONED AT REMOTE LOCALITIES WHERE SUCH
ACCOMMODATIONS ARE NOT AVAILABLE, AND PURCHASE OF SIX AIRCRAFT;
$235,521,000, TO BE DERIVED FORM THE AIRPOST AND AIRWAY TRUST FUND, TO
REMAIN AVAILABLE UNTIL JUNE 30, 1977: PROVIDED, THAT THERE MAY BE
CREDITED TO THIS APPROPRIATION FUNDS RECEIVED FROM STATES, COUNTRIES,
MUNICIPALITIES, OTHER PUBLIC AUTHORITIES, AND PRIVATE SOURCES, FOR
EXPENSES INCURRED IN THE ESTABLISHMENT AND MODERNIZATION OF AIR
NAVIGATION FACILITIES: PROVIDED FURTHER, THAT NO PART OF THE FOREGOING
APPROPRIATION SHALL BE AVAILABLE FOR THE CONSTRUCTION OF A NEW WIND
TUNNEL, OR TO PURCHASE ANY LAMD FOR OR IN CONNECTION WITH THE NATIONAL
AVIATION FACILITIES EXPERIMENTAL CENTER, OR TO REMOTE OR DECOMMISSION
ANY EXISTING FLIGHT SERVICE STATION.
RESEARCH, ENGINEERING AND DEVELOPMENT (AIRPORT AND AIRWAY TRUST
FUND)
FOR NECESSARY EXPENSES, NOT OTHERWISE PROVIDED, FOR RESEARCH,
ENGINEERING AND DEVELOPMENT IN ACCORDANCE WITH THE PROVISIONS OF THE
FEDERAL AVIATION ACT (49 US.C. 1301 - 1542), //72 STAT. 731.// INCLUDING
CONSTRUCTION OF EXPERIMENTAL FACILITIES AND ACQUISITION OF NECESSARY
SITES BY LEASE OR GRANT; $60,000,000, TO BE DERIVED FROM THE AIRPORT
AND AIRWAY TRUST FUND, TO REMAIN AVAILABLE UNTIL EXPENDED: PROVIDED,
THAT THERE MAY BE CREDITED TO THIS APPROPRIATION FUNDS RECEIVED ROM
STATES COUNTIES, MUNICIPALITIES, OTHER PUBLIC AUTHORITIES, AND PRIVATE
SOURCES, FOR EXPENSES INCURRED FOR RESEARCH, ENGINEERING AND DEVEOPMENT.
GRANTS-IN-AID FOR AIRPORTS (AIRPORT AND AIRWAY TRUST FUND)
FOR LIQUIDATION OF OBLIGATIONS INCURRED FOR AIRPORT DEVELOPMENT UNDER
AUTHORITY CONTAINED IN SECTION 14 OF PUBLIC LAW 91 - 258, AS AMENDED,
//84 STAT. 224; 87 STAT, 49 USC 1714.// TO BE DERIVED ROM THE AIRPORT
AND AIRWAY TRUST FUND AND TO REMAIN AVAILABLE UNTIL EXPENDED,
$280,000,000.
OPERATION AND MAINTENANCE, NATIONAL CAPTIAL AIRPORTS
FOR EXPENSES INCIDENT TO THE CARE, OPERATION, MAINTENANCE,
IMPROVEMENT, AND PROTECTION OF THE FEDERALLY OWNED CIVIL AIRPORTS IN THE
VICINITY OF THE DISTRICT OF COLUMBIA, INCLUDING PURCHASE OF TEN
PASSENGER MOTOR VEHICLES FOR POLICE TYPE USE, FOR REPLACEMENT ONLY;
PURCHASE, CLEANING, AND REPAIR OF UNIFORMS; AND ARMS AND AMMUNITION:
$16,000,000.
CONSTRUCTION, NATIONAL CAPITAL AIRPORTS
FOR NECESSARY EXPENSES FOR CONSTRUCTION AT THE FEDERALLY OWNED CIVIL
AIRPORTS IN THE VICINITY OF THE DISTRICT OF COLUMBIA, $5,700,000, TO
REMAIN AVAILABLE UNTIL JUNE 30, 1977.
AVIATION WAR RISK INSURANCE REVOLVING FUND
THE SECRETARY OF TRANSPORTATION IS HEREBY AUTHORIZED TO MAKE SUCH
EXPENDITURES, WITHIN THE LIMITS OF FUNDS AVAILABLE PURSUANT TO SECTION
1306 OF THE ACT OF AUGUST 23, 1958 (49 U.S.C. 1536), //72 STAT. 803.//
AND IN ACCORDANCE WITH SECTION 104 OF THE GOVERNMENT CORPORATION CONTROL
ACT, AS AMENDED (31 U.S.C. 849), //61 STAT. 584.// AS MAY BE NECESSARY
IN CARRYING OUT THE PROGRAMS SET FORTH IN THE BUDGET FOR THE CURRENT
FISCAL YEAR FOR AVIATION WAR RISK INSURANCE ACTIVITIES UNDER SAID ACT.
LIMITATION ON GENERAL OPERATING EXPENSES
NECESSARY EXPENSES FOR ADMINISTRATION, OPERATION, AND RESEARCH OF THE
FEDERAL HIGHWAY ADMINISTRATION NOT TO EXCEED $129,200,000 SHALL BE PAID,
IN ACCORDANCE WITH LAW, FROM APPROPRIATIONS MADE AVAILABLE BY THIS ACT
TO THE FEDERAL HIGHWAY ADMINISTRATION TOGETHER WITH ADVANCES AND
REIMBURSEMENTS RECEIVED BY THE FEDERAL HIGHWAY ADMINISTRATION:
PROVIDED, THAT NOT TO EXCEED $30,600,000 OF THE AMOUNT PROVIDED HEREIN
SHALL REMIAN AVAILABLE UNTIL EXPENDED.
MOTOR CARRIER SAFETY
FOR NECESSARY EXPENSES TO CARRY OUT MOTOR CARRIER SAFETY FUNCTIONS OF
THE SECRETARY, AS AUTHORIZED BY THE DEPARTMENT OF TRANSPORTATION ACT (80
STAT. 939 - 40), //49 USC 1655.// $6,130,000: PROVIDED, THAT NOT TO
EXCEED $500,000 OF THE AMOUNT APPROPRIATED HEREIN SHALL REMAIN AVAILABLE
UNTIL EXPENDED AND NOT TO EXCEED $805,000, SHALL BE AVAILABLE FOR
"LIMITATION ON GENERAL OPERATING EXPENSES."
HIGHWAY SAFETY RESEARCH AND DEVELOPMENT
FOR NECESSARY EXPENSES IN CARRYING OUT PROVISIONS OF TITLE 23, UNITED
STATES CODE, INCLUDING SECTION 206 (B) OF THE "HIGHWAY SAFETY ACT OF
1973," //87 STAT. 285, 23 USC 151 NOTE.// TO BE DERIVED FROM THE HIGHWAY
TRUST FUND, $9,000,000, TO REMAIN AVAILABLE UNTIL EXPENDED.
HIGHWAY BEAUTIFICATION (LIQUIDATION OF CONTRACT AUTHORIZATION)
FOR PAYMENT OF OBLIGATIONS INCURRED IN CARRYING OUT THE PROVISIONS OF
TITLE 23, UNITED STATES CODE, SECTIONS 131, 136, AND 319 (B), //84 STAT.
1726.// $25,000,000 TO REMAIN AVAILABLE UNTIL EXPENDED, TOGETHER WITH
$1,000,000 FOR NECESSARY ADMINISTRATIVE EXPENSES FOR CARRYING OUT SUCH
PROVISIONS OF TITLE 23, UNITED STATES CODE, AS AUTHORIZED BY SECTION 104
(A) OF THE FEDERAL-AID HIGHWAY ACT OF 1973.
HIGHWAY-RELATED SAFETY GRANTS (LIQUIDATION OF CONTRACT
AUTHORIZATION)
FOR PAYMENT OF OBLIGATIONS INCURRED IN CARRYING OUT THE PROVISIONS OF
TITLE 23, UNITED STATES CODE, SECTION 402, //84 STAT. 1740.//
ADMINISTERED BY THE FEDERAL HIGHWAY ADMINISTRATION, TO REMAIN AVAILABLE
UNTIL EXPENDED, $12,000,000 OF WHICH $7,500,000 SHALL BE DERIVED FROM
THE HIGHWAY TRUST FUND: PROVIDED, THAT NOT TO EXCEED $498,000 OF THE
AMOUNT APPROPRIATED HEREIN SHALL BE AVAILABLE FOR "LIMITATION ON GENERAL
OPERATING EXPENSES."
RAIL CROSSINGS--DEMONSTRATION PROJECTS
FOR PAYMENT OF OBLIGATIONS INCURRED IN CARRYING OUT THE PROVISIONS OF
TITLE 23, UNITED STATES CODE, SECTION 3II, TO REMAIN AVAILABLE UNTIL
EXPENDED, $3,000,000, OF WHICH $2,000,000 SHALL BE DERIVED FROM THE
HIGHWAY TRUST FUND.
RAILROAD-HIGHWAY CROSSINGS DEMONSTATION PROJECTS
FOR NECESSARY EXPENSES OF RAILROAD-HIGHWAY CROSSINGS DEMONSTRATION
PROJECTS, AS AUTHORIZED BY SECTION 163 OF THE FEDERAL-AID HIGHWAY ACT OF
1973, //87 STAT. 280, 23 USC 130 NOTE.// TO REMAIN UNTIL EXPENDED,
$11,000,000, TO BE DERIVED BY TRANSFER FROM AMOUNTS AVAILABLE FOR
OBLIGATION UNDER SECTIONS 203 AND 230 OF THE HIGHWAY SAFETY ACT OF 1973.
//87 STAT. 283, 293. 23 USC 130 NOTE, 405.//
RUAL HIGHWAY PUBLIC TRANSPORTATION DEMONSTRATION PROGRAM
FOR NECESSARY EXPENSES IN CARRYING OUT THE PROVISIONS OF THE
"FEDERAL-AID HIGHWAY ACT OF 1973," SECTION 147 //87 STAT. 274, 23 USC
142 NOTE.// TO REMAIN AVAILABLE UNTIL EXPENDED, $10,000,000, OF WHICH
$7,000,000 SHALL BE DERIVED FROM THE HIGHWAY TRUST FUND.
TERRITORIAL HIGHWAYS (LIQUIDATION OF CONTRACT AUTHORIZATION)
FOR PAYMENT OF OBLIGATIONS INCURRED IN CARRYING OUT THE PROVISIONS OF
TITLE 23, UNITED STATES CODE, SECTIONS 215, 402, AND 405, $4,000,000 TO
REMAIN AVAILABLE UNTIL EXPENDED.
DARIEN GAP HIGHWAY
FOR NECESSARY EXPENSES FOR CONSTRUCTION OF THE DARIEN GAP HIGHWAY IN
ACCORDANCE WITH THE PROVISIONS OF SECTION 216 OF TITLE 23 OF THE UNITED
STATES CODE, $20,000,000, TO REMAIN AVAILABLE UNTIL EXPENDED.
ALASKA HIGHWAY
FOR NECESSARY EXPENSES TO CARRY OUT THE PROVISIONS OF SECTION 218 OF
TITLE 23 OF THE UNITED STATES CODE, $5,000,000 TO REMAIN AVAILABLE UNTIL
EXPENDED.
FEDERAL-AID HIGHWAYS (LIQUIDATION OF CONTRACT AUTHORIZATION)
(TRUST FUND)
FOR CARRYING OUT THE PROVISIONS OF TITLE 23, UNITED STATES CODE,
WHICH ARE ATTRIBUTABLE TO FEDERAL-AID HIGHWAYS, NOT OTHERWISE PROVIDED,
INCLUDING REIMBURSEMENT FOR SUMS EXPENDED PURSUANT TO THE PROVISIONS OF
SECTION 308, TITLE 23, UNITED STATES CODE, $4,575,840,000 OR SO MUCH
THEREOF AS MAY BE AVAILABLE IN AND DERIVED FROM THE "HIGHWAY TRUST
FUND", TO REMAIN AVAILABLE UNTIL EXPENDED.
HIGHWAY SAFETY CONSTRUCTION PROGRAMS (LIQUIDATION OF CONTRACT
AUTHORIZATION) (TRUST FUND)
FOR PAYMENT OF OBLIGATIONS INCURRED IN CARRYING OUT THE PROVISIONS OF
TITLE 23, UNITED STATES CODE, SECTIONS 130, 144, 151, 152, 153, AND 405,
$110,000,000, TO BE DERIVED FROM THE HIGHWAY TRUST FUND, TO REMAIN
AVAILABLE UNTIL EXPENDED.
RIGHT-OF-WAY REVOLVING FUND (LIQUIDATION OF CONTRACT
AUTHORIZATION) (TRUST FUND)
FOR PAYMENT OF OBLIGATIONS INCURRED IN CARRYING OUT THE PROVISIONS OF
TITLE 23, UNITED STATES CODE, SECTION 108 (C), //82 STAT. 819.// AS
AUTHORIZED BY SECTION 7(C) OF THE FEDERAL-AID HIGHWAY ACT OF 1968, TO
REMAIN AVAILABLE UNTIL EXPENDED, $20,000,000, TO BE DERIVED FROM THE
"HIGHWAY TRUST FUND" AT SUCH TIMES AND IN SUCH AMOUNTS AS MAY BE
NECESSARY TO MEET CURRENT WITHDRAWALS.
FOREST HIGHWAYS (LIQUIDATION OF CONTRACT AUTHORIZATION)
FOR PAYMENT OF OBLIGATIONS INCURRED IN CARRYING OUT THE PROVISIONS OF
TITLE 23, UNITED STATES CODE, SECTON 204, PURSUANT TO CONTRACT
AUTHORIZATION GRANTED BY TITLE 23, UNITED STATES CODE, SECTION 203, TO
REMAIN AVAILABLE UNTIL EXPENDED, $12,450,000.
PUBLIC LANDS HIGHWAY (LIQUIDATION OF CONTRACT AUTHORIZATION)
FOR PAYMENT OF OBLIGATIONS INCURRED IN CARRYING OUT THE PROVISIONS OF
TITLE 23, UNITED STATES CODE, SECTION 209, PURSUANT TO THE CONTRACT
AUTHORIZATION GRANTED BY TITLE 23, UNITED STATES CODE, SECTION 203,
$8,270,000, TO REMAIN AVAILABLE UNTIL EXPENDED.
BALTIMORE-WASHINGTON PARKWAY
FOR NECESSARY EXPENSES, NOT OTHERWISE PROVIDED, TO CARRY OUT THE
PROVISIONS OF THE FEDERAL-AID HIGHWAY ACT OF 1970, //84 STAT. 1739, 23
USC 101 NOTE.// FOR THE BALTIMORE-WASHINGTON PARKWAY, TO REMAIN
AVAILABLE UNTIL EXPENDED, $1,600,000 TO BE DERIVED FROM THE "HIGHWAY
TRUST FUND" AND TO BE WITHDRAWN THEREFROM AT SUCH TIMES AND IN SUCH
AMOUNTS AS MAY BE NECESSARY.
TRAFFIC AND HIGHWAY SAFETY
FOR EXPENSES NECESSARY TO DISCHARGE THE FUNCTIONS OF THE SECRETARY
WITH RESPECT TO TRAFFIC AND HIGHWAY SAFETY AND FUNCTIONS UNDER THE MOTOR
VEHICLE INFORMATION AND COST SAVINGS ACT (PUBLIC LAW 92 - 513), //86
STAT. 947, 15 USC 1901 NOTE.// $73,445,000, OF WHICH $29,130,000 SHALL
BE DERIVED FROM THE HIGHWAY RRUST FUND; PROVIDED, THAT NOT TO EXCEED
$34,800,000 SHALL REMAIN AVAILABLE UNTIL EXPENDED FOR THE CONTRACTUAL
AND STATE GRANT REQUIREMENTS OF THE MOTOR VEHICLE INFORMATION AND COST
SAVINGS ACT, AND THE CONTRACTUAL REQUIREMENTS OF RESEARCH AND ANALYSIS
ACTIVITIES.
STATE AND COMMUNITY HIGHWAY SAFETY (LIQUIDATION OF CONTRACT
AUTHORIZATION)
FOR PAYMENT OF OBLIGATIONS INCURRED IN CARRYING OUT THE PROVISIONS OF
TITLE 23, UNITED STATES CODE, SECTION 402, TO REMAIN AVAILABLE UNTIL
EXPENDED, $96,000,000, OF WHICH $85,140,000 SHALL BE DERIVED FROM THE
HIGHWAY TRUST FUND.
OFFICE OF THE ADMINISTRATOR
FOR NECESSARY EXPENSES OF THE FEDERAL RAILROAD ADMINISTRATION, NOT
OTHERWISE PROVIDED FOR, $3,800,000.
RAILROAD SAFETY
FOR NECESSARY EXPENSES IN CONNECTION WITH RAILROAD SAFETY, NOT
OTHERWISE PROVEDED FOR, $10,170,000.
GRANTS-IN-AID FOR RAILROAD SAFETY
FOR GRANTS-IN-AID TO CARRY OUT A RAILROAD SAFETY PROGRAM, $1,000,000,
TO REMAIN AVAILABLE UNTIL EXPENDED: PROVIDED, THAT THE UNOBLIGATED
BALANCE OF THIS APPROPRIATION FOR FISCAL YEAR 1974 IS HEREBY CONTINUED
AVAILABLE UNTIL EXPENDED.
RAILROAD RESEARCH AND DEVELOPMENT
FOR NECESSARY EXPENSES FOR RESEARCH, DEVELOPMENT, AND DEMONSTRATIONS
IN HIGH-SPEED GROUND TRANSPORTATION AND IN RAIL MATTERS GENERALLY,
$50,000,000, TO REMAIN AVAILABLE UNTIL EXPENDED.
GRANTS TO THE NATIONS RAILROAD PASSENGER CORPORATION
TO ENABLE THE SECRETARY OF TRANSPORTATION TO MAKE GRANTS TO THE
NATIONAL RAILROAD PASSENGER CORPORATION, $135,000,000, TO REMAIN
AVAILABLE UNTIL EXPENDED, OF WHICH $119,800,000 SHALL BE AVAILABLE ONLY
UPON THE ENACTMENT INTO LAW OF AUTHORIZING LEGISLATION BY THE CONGRESS.
ALASKA RAILROAD REVOLVING FUND
THE ALASKA RAILROAD REVOLVING FUND SHALL CONTINUE AVAILABLE UNTIL
EXPENDED FOR THE WORK AUTHORIZED BY LAW, INCLUDING OPERATION AND
MAINTENANCE OF OCEANGOING OR COASTWISE VESSELS BY OWNERSHIP, CHARTER, OR
ARRANGEMENT WITH OTHER BRANCHES OF THE GOVERNMENT SERVICE, FOR THE
PURPOSE OF PROVIDING ADDITIONAL FACILITIES FOR TRANSPORTATION OF
FREIGHT, PASSENGERS, OR MAIL, WHEN DEEMED NECESSARY FOT HE BENEFIT AND
DEVELOPMENT OF INDUSTRIES OR TRACEL IN THE AREA SERVED; //80 STAT.
553.// AND PAYMENT OF COMPENSATION AND EXPENSES AS AUTHORIZED BY 5 U.S.
C. 8146, TO BE REIMBURSED AS THERIN PROVIDED: PROVIDED, THAT NO
EMPLOYEE SHALL BE PAID AN ANNUAL SALARY OUT OF SAID FUND IN EXCESS OF
THE SALARIES PRESCRIBED BY THE CLASSIFICATION ACT OF 194., AS AMENDED,
FOR GRADE GS-15, //5 USC 5332 NOTE.// EXCEPT THE GENERAL MANAGER OF SAID
RAILROAD, ONE ASSISTANT GENERAL MANAGER AT NOT TO EXCEED THE SALARIES
PRESCRIBED BY SAID ACT FOR GS-17, AND FIVE OFFICERS AT NOT TO EXCEED THE
SALARIES PRESCRIBED BY SAID ACT FOR GRADE GS-16.
PAYMENT TO THE ALASKA RAILROAD REVOLVING FUND
FOR PAYMENT TO THE ALASKA RAILROAD REVOLVING FUND FOR CAPITAL
REPLACEMENTS, IMPROVEMENTS, AND MAINTENANCE, $6,250,000, TO REMAIN
AVAILABLE UNTIL EXPENDED.
URBAN MASS TRANSPORTATION FUND
ADMINISTRATIVE EXPENSES
FOR NECESSARY ADMINISTRATIVE EXPENSES OF THE URBAN MASS
TRANSPORTATION PROGRAM AUTHORIZED BY THE URBAN MASS TRANSPORTATION ACT
OF 1964 (49 U.S.C. 1601 ET SEQ., AS AMENDED BY PUBLIC LAW 91 - 453) //78
STAT. 302; 84 STAT. 962.// AND THE FEDERAL-AID HIGHWAY ACT OF 1973
(PUBLIC LAW 93 - 87) //87 STAT. 250 23 USC 101 NOTE.// IN CONNECTION
WITH THE ACTIVITIES, INCLUDING UNIFORMS AND ALLOWANCES THEREFOR, AS
AUTHORIZED BY LAW (5 U.S.C. 5901 - 5902); //80 STAT. 508; 81 STAT.
206.// HIRE OF PASSENGER MOTOR VEHICLE; AND SERVICES AS AUTHORIZED BY 5
U.S.C. 3109, //80 STAT. 416.// $6,000,000: PROVIDED, HOWEVER, THAT
THERE BY A 3.5 PER CENTUM REDUCTION IN NEW BUDGET (OBLIGATIONAL)
AUTHORITY ACROSS THE BOARD OF THE TOTAL APPROPRIATIONS CONTAINED IN THIS
ACT EXCEPT FOR THE APPROPRAITIONS FOR COAST GUARD, OPERATING EXPENSES;
COAST GUARD, RETIRED PAY; FEDERAL AVIATION ADMINISTRATION, OPERATIONS;
NATIONAL TRANSPORTATION SAFETY BOARD, SALARIES AND EXPENSES; CIVIL
AERONAUTICS BOARD, SALARIES AND EXPENSES; CIVIL AERONAUTICS BOARD,
PAYMENTS TO AIRCARRIERS; INTERSTATE COMMERCE COMMISSION, SALARIES AND
EXPENSES; AND EXCEPT FOR ALL LIMITATIONS: PROVIDED FURTHER, THAT THE
APPROPRIATION FOR DARIEN GAP HIGHWAY IS REDUCED BY AN ADDITIONAL
$6,000,000.
RESEARCH, DEVELOPMENT, AND DEMONSTRATIONS AND UNIVERSITY
RESEARCH AND TRAINING
FOR AN ADDITIONAL AMOUNT FOR THE URBAN MASS TRANSPORTATION PROGRAM,
AS AUTHORIZED BY THE URBAN MASS TRANSPORTATION ACT OF 1964, AS AMENDED
(49 U.S.C. 1601 ET SEQ.), //78 STAT. 302; 84 STAT. 962.// TO REMAIN
AVAILABLE UNTIL EXPENDED; $45,130,000: PROVIDED, THAT $41,880,000
SHALL BE AVAILABLE FOR RESEARCH, FOR UNIVERSITY RESEARCH AND TRAINING,
AND NOT TO EXCEED $1,000,000 SHALL BE AVAILABLE FOR MANAGERIAL TRAINING
AS AUTHORIZED UNDER THE AUTHORITY OF THE SAID ACT.
LIQUIDATION OF CONTRACT AUTHORIZATION
FOR PAYMENT TO THE URBAN MASS TRANSPORTATION FUND, FOR LIQUIDATION OF
CONTRACTUAL OBLIGATIONS INCURRED UNDER AUTHORITY OF THE URBAN MASS
TRANSPORTATION ACT OF 1964 (49 U.S.C. 1606 ET SEQ., AS AMENDED BY PUBLIC
LAW 91 - 453), $400,000,000, TO REMAIN AVAILABLE UNTIL EXPENDED.
THE SAINT LAWRENCE SEAWAY DEVELOPMENT CORPORATION IS HEREBY
AUTHORIZED TO MAKE SUCH EXPENDITURES, WITHIN THE LIMITS OF FUNDS AND
BORROWING AUTHORITY AVAILABLE TO SUCH CORPORATION, AND IN ACCORD WITH
LAW, AND TO MAKE SUCH CONTRACTS AND COMMITMENTS WITHOUT REGARD TO FISCAL
YEAR LIMITATIONS AS PROVIDED BY SECTION 104 OF THE GOVERNMENT
CORPORATION CONTROL ACT, AS AMENDED, //61 STAT. 584, 31 USC 849.// AS
MAY BE NECESSARY IN CARRYING OUT THE PROGRAMS SET FORTH IN THE BUDGET
FOR THE CURRENT FISCAL YEAR FOR SUCH CORPORATION EXCEPT AS HEREINAFTER
PROVIDED.
LIMITATION ON ADMINISTRATIVE EXPENSES, SAINT LAWRENCE SEAWAY
DEVELOPMENT CORPORATION
NOT TO EXCEED $886,000 SHALL BE AVAILABLE FOR ADMINISTRATIVE EXPENSES
WHICH SHALL BE COMPUTED ON AN ACCRUAL BASIS, INCLUDING NOT TO EXCEED
$3,000 FOR OFFICIAL ENTERTAINMENT EXPENSES TO BE EXPENDED UPON THE
APPROVAL OR AUTHORITY OF THE SECRETARY OF TRANSPORTATION: PROVIDED,
THAT CORPORATION FUNDS SHALL BE AVAILABLE FOR THE HIRE OF PASSENGER
MOTOR VEHICLES AND AIRCRAFT, OPERATION AND MAINTENANCE OF AIRCRAFT,
UNIFORMS OR ALLOWANCES THEREFOR FOR OPERATION AND MAINTENANCE PERSONNEL,
AS AUTHORIZED BY LAW (5 U.S.C. 5901 - 5902), //80 STAT. 508; 81 STAT.
206.// AND $15,000 FOR SERVICES AS AUTHORIZED BY 5 U.S.C. 3109.
SALARIES AND EXPENSES
FOR NECESSARY EXPENSES OF THE NATIONAL TRANSPORTATION SAFETY BOARD,
$9,450,000.
SALARIES AND EXPENSES
FOR NECESSARY EXPENSES OF THE CIVIL AERONAUTICS BOARD, INCLUDING HIRE
OF AIRCRAFT; HIRE OF PASSENGER MOTOR VEHICLES; SERVICES AS AUTHORIZED
BY 5 U.S.C. 3109; //80 STAT. 416.// UNIFORMS, OR ALLOWANCES THEREFOR,
AS AUTHORIZED BY LAW (5 U.S.C. 5901 - 5902); AND NOT TO EXCEED $1,000
FOR OFFICIAL RECEPTION AND REPRESENTATION EXPENSES, $17,150,000.
PAYMENTS TO AIR CARRIERS
FOR PAYMENTS TO AIR CARRIERS OF SO MUCH OF THE COMPENSATION FIXED AND
DETERMINED BY THE CIVIL AERONAUTICS BOARD UNDER SECTION 406 OF THE
FEDERAL AVIATION ACT OF 1958 (49 U.S.C. 1376), //72 STAT. 763.// AS IS
PAYABLE BY THE BOARD, $67,728,000, TO REMAIN AVAILABLE UNTIL EXPENDED.
SALARIES AND EXPENSES
FOR NECESSARY EXPENSES OF THE INTERSTATE COMMERCE COMMISSION,
INCLUDING SERVICES AS AUTHORIZED BY 5 U.S.C. 3109, $43,000,000, OF WHICH
$150,000 SHALL BE AVAILABLE FOR VALUATION OF PIPELINES: PROVIDED, THAT
JOINT BOARD MEMBERS AND COOPERATING STATE COMMISSIONERS MAY USE
GOVERNMENT TRANSPORTATION REQUESTS WHEN TRAVELING IN CONNECTION WITH
THEIR DUTIES AS SUCH. //49 USC 305A.//
OPERATING EXPENSES
FOR OPERATING EXPENSES NECESSARY FOR THE CANAL ZONE GOVERNMENT,
INCLUDING OPERATION OF THE POSTAL SERVICE OF THE CANAL ZONE; HIRE OF
PASSENGER MOTOR VEHICLES; UNIFORMS OR ALLOWANCES THEREFOR, AS
AUTHORIZED BY LAW (5 U.S.C. 5901 - 5902); //80 STAT. 508; 81 STAT.
206.// EXPENSES INCIDENT TO CONDUCTING HEARINGS ON THE ISTHMUS;
EXPENSES OF SPECIAL TRAINING OF EMPLOYEES OF THE CANAL ZONE GOVERNMENT
AS AUTHORIZED BY 5 U.S.C. 4101 - 4118, //80 STAT. 432.// CONTINGENCIES
OF THE GOVERNOR, RESIDENCE FOR THE GOVERNOR; MEDICAL AID AND SUPPORT OF
THE INSANE AND OF LEPERS AND AID AND SUPPORT OF INDIGENT PERSONS LEGALLY
WITHIN THE CANAL ZONE, INCLUDING EXPENSES OF THEIR DEPORTATION WHN
PRACTICABLE; AND MAINTAINING AND ALTERING FACILITIES OF OTHER
GOVERNMENT AGENCIES IN THE CANAL ZONE FOR CANAL ZONE GOVERNMENT USE,
$62,700,000.
CAPITAL OUTLAY
FOR ACQUISITION OF LAND AND UNDER WATER AND ACQUISITION,
CONSTRACTION, AND REPLACEMENT OF IMPROVEMENTS, FACILITIES, STRUCTURES,
AND EQUIPMENT, AS AUTHORIZED BY LAW (2 C.Z. CODE, SEC. 2; 2 C.Z. CODE,
SEC. 371), //76A STAT. 7, 26.// INCLUDING THE PURCHASE OF NOT TO EXCEED
SIXTEEN PASSENGER MOTOR VEHICLES OF WHICH FOURTEEN ARE FOR REPLACEMENT
ONLY; IMPROVING FACILITIES OF OTHER GOVERNMENT AGENCIES IN THE CANAL
ZONE FOR CANAL ZONE GOVERNMENT USE; AND EXPENSES INCIDENT TO THE
RETIREMENT OF SUCH ASSETS; $6,000,000, TO REMAIN AVAILABLE UNTIL
EXPENDED.
CORPORATION
THE PANAMA CANAL COMPANY IS HEREBY AUTHORIZED TO MAKE SUCH
EXPENDITURES WITHIN THE LIMITS OF FUNDS AND BORROWING AUTHORITY
AVAILABLE TO IT AND IN ACCORDANCE WITH LAW, AND TO MAKE SUCH CONTRACTS
AND COMMITMENTS WITHOUT REGARD TO FISCAL YEAR LIMITATIONS AS PROVIDED BY
SECTION 104 OF THE GOVERNMENT CORPORATION CONTROL ACT, AS AMENDED (31
U.S.C. 849), //61 STAT. 584.// AS MAY BE NECESSARY IN CARRYING OUT THE
PROGRAMS SET FORTH IN THE BUDGET FOR THE CURRECT FISCAL YEAR FOR SUCH
CORPORATION, INCLUDING MAINTAINING AND IMPROVING FACILITIES OF OTHER
GOVERNMENT AGENCIES IN THE CANAL ZONE FOR PANAMA CANAL COMPANY USE.
LIMITATION ON GENERAL AND ADMINISTRATIVE EXPENSES
NOT TO EXCEED $23,837,000 OF THE FUNDS AVAILABLE TO THE PANAMA CANAL
COMPANY SHALL BE AVAILABLE FOR OBLIGATION DURING THE CURRENT FISCAL YEAR
FOR GENERAL AND AFMINISTRATIVE EXPENSES OF THE COMPANY, INCLUDING
OPERATION OF TOURIST VESSELS AND GUIDE SERVICES. FUNDS AVAILABLE TO THE
PANAMA CANAL COMPANY FOR OBLIGATION SHALL BE AVAILABLE FOR THE PURCHASE
OF NOT TO EXCEED TWENTY-NINE PASSENGER MOTOR VEHICLES, INCLUDING ONE
MEDIUM SEDAN, FOR REPLACEMENT ONLY, AND FOR UNIFORMS OR ALLOWANCES
THEREFOR AS AUTHORIZED BY LAW (5 U.S.C. 5901 - 5902).
FEDERAL CONTRIBUTION
TO ENABLE THE DEPARTMENT OF TRANSPORTATION TO PAY THE WASHINGTON
METROPOLITAN AREA TRANSIT AUTHORITY, AS PART OF THE FEDERAL CONTRIBUTION
TOWARD EXPENSES NECESSARY TO DESIGN, ENGINEER, CONSTRUCT, AND EQUIP A
RAIL RAPID TRANSIT SYSTEM, AS AUTHORIZED BY THE NATIONAL CAPITAL
TRANSPORTATION ACT OF 1969 (PUBLIC LAW 91 - 143) AS AMENDED, //83 STAT.
320; 86 STAT. 1004, D.C. CODE 1 - 1441 NOTE.// INCLUDING ACQUISITION OF
RIGHTS-OF-WAY, LAND, AND INTEREST THEREIN, TO REMAIN AVAILABLE UNTIL
EXPENDED, $52,724,000 FOR THE FISCAL YEAR 1976, AND FOR THE FISCAL YEAR
1975, $19,400,000 FOR THE DESIGN AND CONSTRUCTION OF FACILITIES FOR THE
HANDICAPPED AS AUTHORIZED BY PUBLIC LAW 93 - 87. //87 STAT. 250, 23 USC
101 NOTE.//
INTEREST SUBSIDY
TO ENABLE THE DEPARTMENT OF TRNASPORTATION TO PAY THE WASHINGTON
METROPOLITAN AREA TRANSIT AUTHORITY THE INTEREST SUBSIDY AUTHORIZED BY
PUBLIC LAW 92 - 349, //86 STAT. 464.// $17,450,000, TO REMAIN AVAILABLE
UNTIL EXPENDED.
SEC. 301. DURING THE CURRENT FISCAL YEAR APPLICABLE APPROPRIATIONS
TO THE DEPARTMENT OF TRANSPORTATION SHALL BE AVAILABLE FOR MAINTENANCE
AND OPERATION OF AIRCRAFT; HIRE OF PASSENGER MOTOR VEHICLES AND
AIRCRAFT; AND UNIFORMS, OR ALLOWANCES THEREFOR, AS AUTHORIZED BY LAW (5
U.S.C. 5901 - 5902). //80 STAT. 508; 81 STAT. 206.//
SEC. 302. NONE OF THE FUNDS PROVIDED UNDER THIS ACT SHALL BE
AVAILABLE FOR ADMINISTRATIVE EXPENSES IN CONNECTION WITH COMMITMENTS FOR
GRANTS-IN-AID FOR AIRPORT DEVELOPMENT AGGREGATING MORE THAN $310,000,000
IN FISCAL YEAR 1975.
SEC. 303. NONE OF THE FUNDS PROVIDED UNDER THIS ACT SHALL BE
AVAILABLE FOR THE PLANNING OR EXECUTION OF PROGRAMS THE OBLIGATIONS FOR
WHICH ARE IN EXCESS OF $45,000,000 FOR "HIGHWAY BEAUTIFICATION" IN
FISCAL YEAR 1975.
SEC. 304. NONE OF THE FUNDS PROVIDED UNDER THIS ACT SHALL BE
AVAILABLE FOR THE PLANNING OR EXECUTION OF PROGRAMS THE OBLIGATIONS FOR
WHICH ARE IN EXCESS OF $100,000,000 IN FISCAL YEAR 1975 FOR "STATE AND
COMMUNITY HIGHWAY SAFETY" AND "HIGHWAY-RELATED SAFETY GRANTS".
SEC. 305. NONE OF THE FUNDS PROVIDED UNDER THIS ACT SHALL BE
AVAILABLE FOR THE PLANNING OR EXECUTION OF PROGRAMS THE OBLIGATIONS FOR
WHICH ARE IN EXCESS OF $4,600,000 IN FISCAL YEAR 1975 FOR "TERRITORIAL
HIGHWAYS".
SEC. 306. NONE OF THE FUNDS PROVIDED IN THIS ACT SHALL BE AVAILABLE
FOR ADMINISTRATIVE EXPENSES IN CONNECTION WITH COMMITMENTS FOR THE URBAN
MASS TRANSPORTATION ACT OF 1964, AS AMENDED, AGGREGATING MORE THAN
$1,445,250,000 IN FISCAL YEAR 1975.
SEC. 307. NO PART OF ANY APPROPRIATION CONTAINED IN THIS ACT SHALL
REMAIN AVAILABLE FOR OBLIGATION BEYOND THE CURRENT FISCAL YEAR UNLESS
EXPRESSLY SO PROVIDED HEREIN.
SEC. 308. NONE OF THE FUNDS PROVIDED UNDER THIS ACT SHALL BE
AVAILABLE FOR THE PLANNING OR EXECUTION OF PROGRAMS FOR ANY FURTHER
CONSTRUCTION OF THE MIAMI JETPORT OR OF ANY OTHER AIR FACILITY IN THE
STATE OF FLORIDA LYING SOUTH OF THE OKEECHOBEE WATERWAY AND IN THE
DRAINAGE BASINS CONTRIBUTING WATER TO THE EVERGLADES NATIONAL PARK UNTIL
IT HAS BEEN SHOWN BY AN APPROPRIATE STUDY MADE JOINTLY BY THE DEPARTMENT
OF THE INTERIOR AND THE DEPARTMENT OF TRANSPORTATION THAT SUCH AN
AIRPORT WILL NOT HAVE AN ADVERSE ENVIRONMENTAL EFFECT ON THE ECOLOGY OF
THE EVERGLADES AND UNTIL ANY SITE SELECTED ON THE BASIS OF SUCH STUDY IS
APPROVED BY THE DEPARTMENT OF THE INTERIOR AND THE DEPARTMENT OF
TRANSPORTATION: PROVIDED, THAT NOTHING IN THIS SECTION SHALL AFFECT THE
AVAILABILITY OF SUCH FUNDS TO CARRY OUT THIS STUDY.
SEC. 309. THE GOVERNOR OF THE CANAL ZONE IS AUTHORIZED TO EMPLOY
SERVICES AS AUTHORIZED BY 5 U.S.C. 3109, //80 STAT. 416.// IN AN AMOUNT
NOT EXCEEDING $150,000.
SEC. 310. FUNDS APPROPRIATED FOR OPERATING EXPENSES OF THE CANAL
ZONE GOVERNMENT MAY BE APPRORTIONED NOTWITHSTANDING SECTION 3679 OF THE
REVISED STATUTES, AS AMENDED (31 U.S.C. 665), TO THE EXTENT NECESSARY TO
PERMIT PAYMENT OF SUCH PAY INCREASES FOR OFFICERS OR EMPLOYEES AS MAY BE
AUTHORIZED BY ADMINISTRATIVE ACTION PURSUANT TO LAW WHICH ARE NOT IN
EXCESS OF STATUTORY INCREASES GRANTED FOR THE SAME PERIOD IN
CORRESPONDING RATES OF COMPENSATION FOR OTHER EMPLOYEES OF THE
GOVERNMENT IN COMPARABLE POSITIONS.
SEC. 311. FUNDS APPROPRIATED UNDER THIS ACT FOR EXPENDITURE BY THE
FEDERAL AVIATION ADMINISTRATION AND THE COAST GUARD SHALL BE AVAILABLE
(1) FOR EXPENSES OF PRIMARY AND SECONDARY SCHOOLING FOR DEPENDENTS OF
FEDERAL AVIATION ADMINISTRATION AND COAST GUARD PERSONNEL STATIONED
OUTSIDE THE CONTINENTAL UNITED STATES AT COSTS FOR ANY GIVEN AREA NOT IN
EXCESS OF THOSE OF THE DEPARTMENT OF DEFENSE FOR THE SAME AREA, WHEN IT
IS DETERMINED BY THE SECRETARY THAT THE SCHOOLS, IF ANY, AVAILABLE IN
THE LOCALITY ARE UNABLE TO PROVIDE ADEQUATELY FOR THE EDUCATION OF SUCH
DEPENDENTS AND (2) FOR TRANSPORTATION OF SAID DEPENDENTS BETWEEN SCHOOLS
SERVING THE AREA WHICH THEY ATTEND AND THEIR PLACES OF RESIDENCE WHEN
THE SECRETARY, UNDER SUCH REGULATIONS AS HE MAY PRESCRIBE, DETERMINES
THAT SUCH SCHOOLS ARE NOT ACCESSIBLE BY PUBLIC MEANS OF TRANSPORTATION
ON A REGULAR BASIS.
SEC. 312. APPROPRIATIONS CONTAINED IN THIS ACT FOR THE DEPARTMENT OF
TRANSPORTATION SHALL BE AVAILABLE FOR SERVICES AS AUTHORIZED BY 5 U.
S.C. 3109, //80 STAT. 416, 5 USC 5332 NOTE.// BUT AT RATES FOR
INDIVIDUALS NOT TO EXCEED THE PER DIEM RATE WQUIVALENT TO THE RATE FOR A
GS-18.
SEC. 313. NONE OF THE FUNDS IN THIS ACT SHALL BE AVAILABLE FOR THE
IMPLEMENTATION OR EXECUTION OF A PROGRAM IN THE DEPARTMENT OF
TRANSPORTATION TO COLLECT FEES, CHARGES OR PRICES FOR APPROVALS, TESTS,
AUTHORIZATIONS, CERTIFICATES, PERMITS, REGISTRATIONS, AND RATINGS WHICH
ARE IN EXCESS OF THE LEVELS IN EFFECT ON JANUARY 1, 1973, OR WHICH DID
NOT EXIST AS OF JANUARY 1, 1973, UNTIL SUCH PROGRAM IS REVIEWED AND
APPROVED BY THE APPROPRIATE COMMITTEES OF THE CONGRESS.
SEC. 314. NO PART OF ANY APPROPRATION CONTAINED IN THIS ACT SHALL BE
AVAILABLE FOR PAYING TO THE ADMINISTRATOR OF THE GENERAL SERVICES
ADMINISTRATION IN EXCESS OF 90 PERCENT OF THE STANDARD LEVEL USER CHARGE
ESTABLISHED PURSUANT TO SECTION 210 (J) OF THE FEDERAL PROPERTY AND
ADMINISTRATIVE SERVICES ACT OF 1949, AS AMENDED, //86 STAT. 219, 40 USC
490.// FOR SPACE AND SERVICES.
SEC. 315. NONE OF THE FUNDS PROVIDED UNDER THIS ACT SHALL BE
AVAILABLE FOR THE PURCHASE OF PASSENGER RAIL OR SUBWAY CARS, FOT HE
PURCHASE OF MOTOR BUSES OR FOR THE CONSTRUCTION OF RELATED FACILITIES
UNLESS SUCH CARS, BUSES AND FACILITIES ARE DESIGNED TO MEET THE MASS
TRANSPORTATION NEEDS OF THE ELDERLY AND THE HANDICAPPED.
THIS ACT MAY BE CITED AS THE "DEPARTMENT OF TRANSPORTATION AND
RELATED AGENCIES APPROPRIATION ACT, 1975".
LEGISLATIVE HISTORY:
HOUSE REPORTS: NO. 93 - 1111 (COMM. ON APPROPRIATIONS) AND NO. 1270
(COMM. OF CONFERENCE).
SENATE REPORT NO. 93 - 1048 (COMM. ON APPROPRIATIONS).
CONGRESSIONAL RECORD, VOL. 120 (1974):
JUNE 19, CONSIDERED AND PASSED HOUSE.
AUG. 2, CONSIDERED AND PASSED SENATE, AMENDED.
AUG. 13, HOUSE AGREED TO CONFERENCE REPORT.
AUG. 15, SENATE AGREED TO CONFERENCE REPORT.
PUBLIC LAW 93-390, 88 STAT 763, OVERSEAS PRIVATE INVESTMENT
CORPORATION AMENDMENTS ACT OF 1974
BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE
UNITED STATES OF AMERICA IN CONGRESS ASSENBLED, THAT THIS ACT MAY BE
CITED AS THE "OVERSEAS PRIVATE INVESTMENT CORPORATION AMENDMENTS ACT OF
1974". //22 USC 2191 NOTE.//
SEC. 2. TITLE IV OF CHAPTER 2 OF PART OF THE FOREIGN ASSISTANCE ACT
OF 1961 (22 U.S.C. 2191 - 2200A) //83 STAT. 809, 22 USC 2191.// IS
AMENDED AS FOLLOWS:
(1) IN SECTION 231--
(A) IN THE FIRST SENTENCE, STRIKE OUT "PROGRESS" AND INSERT IN
LIEU THEREOF "DEVELOPMENT";
(B) STRIKE OUT CLAUSE (A) AND INSERT IN LIEU THEREOF THE
FOLLOWING:
"(A) TO CONDUCT FINANCING, INSURANCE, AND REINSURANCE
OPERATIONS ON A SELF-SUSTAINING BASIS, TAKING INTO ACCOUNT IN ITS
FINANCING OPERATIONS THE ECONOMIC AND FINANCIAL SOUNDNESS OF
PROJECTS;";
(C) IN CLAUSE (D) STRIKE OUT ", WHEN APPROPRIATE,", AND INSERT
AFTER "EFFORTS TO SHARE ITS INSURANCE" THE FOLLOWING: "AND
REINSURANCE";
(D) STRIKE OUT CLAUSE (E) AND INSERT IN LIEU THEREOF THE ANY
REGISTRATION FORMS ADOPTED OR APPROVED BY THE COMMISSIONER.
"(E) TO GIVE PREFERENTIAL CONSIDERATION IN ITS INVESTMENT
INSURANCE, FINANCING, AND REINSURANCE ACTIVITIES (TO THE MAXIMUM
EXTENT) PRACTICABLE CONSISTENT WITH THE CORPORATION'S PURPOSES) TO
INVESTMENT PROJECTS INVOLVING BUSINESSES OF NOT MOE THAN
$2,500,000 NET WORTH OR WITH NOT MORE THAN $7,500,000 IN TOTAL
ASSESTS;";
(E) IN CLAUSE (I), AFTER "BALANCE-OF-PAYMENTS" INSERT "AND
EMPLOYMENT";
(F) IN CLAUSE (J), STRIKE OUT "AND" AFTER THE SEMICOLON;
(G) AT THE END OF CLAUSE (K), STRIKE OUT THE PERIOD AND INSERT
IN LIEU THEREOF A SEMICOLON; AND
(H) ADD AT THE END THEREOF THE FOLLOWING NEW CLAUSES:
"(1) TO THE MAXIMUM EXTENT PRACICABLE, TO GIVE PREFERENTIAL
CONSIDERATION IN THE CORPORATION'S INVESTMENT INSURANCE,
FINANCING, AND REINSURANCE ACTIVITIES TO INVESTMENT PROJECTS IN
THE LESS DEVELOPED FRIENDLY COUNTRIES WHICH HAVE PER CAPITA
INCOMES OF $450 OR LESS IN 1973 UNITED STATES DOLLARS; AND
"(M)(1) TO DECLINE TO ISSUE ANY CONTRACT OF INSURANCE OR
REINSURANCE, OR ANY GUARANTY, OR TO ENTER INTO ANY AGREEMENT TO
PROVIDE FINANCING FOR AN ELIGIBLE INVESTOR'S PROPOSED INVESTMENT
IF THE CORPORATION DETERMINES THAT SUCH INVESTMENT IS LIKELY TO
CAUSE SUCH INVESTOR (OR THE SPONSOR OF AN INVESTMENT PROJECT IN
WHICH SUCH INVESTOR IS INVOLVED) SIGNIFICANTLY TO REDUCE THE
NUMBER OF HIS EMPLOYEES IN THE UNITED STATES BECAUSE HE IS
REPLACING HIS UNITED STATES PRODUCTION WITH PRODUCTION FROM SUCH
INVESTMENT WHICH INVOLVES SUBSTANTIALLY THE SAME PRODUCT FOR
SUBSTANTIALLY THE SAME MARKET AS HIS UNITED STATES PRODUCTION;
AND (2) TO MONITOR CONFORMANCE WITH THE REPRESENTATIONS OF THE
INVESTOR ON WHICH THE CORPORATION RELIED IN MAKING THE
DETERMINATION REQUIRED BY CLAUSE (1)."
(2) SECTION 234 IS AMENDED-- //83 STAT. 811, 22 USC 2194.//
(A) BY SRRIKING OUT THE SECTION CAPTION AND INSERTING IN LIEU
THEREOF THE FLOOOWING: "INVESTMENT INSURANCE AND OTHER PROGRAMS";
(B) BY STRIKING OUT SUBSECTION (A)(2) //83 STAT. 812, 22 USC
2194.// AND INSERTING IN LIEU THEREOF THE FOLLOWING:
"(2) RECOGNIZING THAT MAJOR PRIVATE INVESTMENTS IN LESS DEVELOPED
FRIENLY COUNTRIES OR AREAS ARE OFTERN MADE BY ENTERPRISES IN WHICH THERE
IS MULTINATIONAL PARTICIPATION, INCLUDING SIGNIFICANT UNITED STATES
PRIVATE PARTICIPATION, THE CORPORATION MAY MAKE ARRANGEMENTS WITH
FOREIGN GOVERNMENTS (INCLUDING AGENCIES, INSTRUMENTALITIES, OR POLITICAL
SUBDIVISIONS THEREOF) OR WITH MULTILATERAL ORGANIZATIONS AND
INSTITUTIONS FOR SHARING LIABILITIES ASSUMED UNER INVESTMENT INSURANCE
FOR SUCH INVESTMENTS AND MAY IN CONNECTION THEREWITH ISSUE INSURANCE TO
INVESTORS NOT OTHERWISE ELIGIBLE HEREUNDER, EXCEPT THAT LIABILITIES
ASSUMED BY THE CORPORATION UNDER THE AUTHORITY OF THIS SUBSECTION SHALL
BE CONSISTENT WITH THE PURPOSES OF THIS TITLE AND THAT THE MAXIMUM SHARE
OF LIABILITIES SO ASSUMED SHALL NOT EXCEED THE PROPORTIONATE
PARTICIPATION BY ELIGIBLE INVESTORS IN THE TOTAL PROJECT FINANCING, AND
THAT THE MAXIMUM SHARE OF LIABILITIES SO ASSUMED UNDER PARAGRAPH (1),
(A) AND (B) OR PARAGRAPH (1) (C) SHALL NOT EXCEED THE CORPORATION'S
PROPORTIONAL SHARE FOR SUCH LIABILITIES AS SPECIFIED IN PARAGRAPH (4) OR
(5) OF THIS SECTION".
(C) BY ADDING AT THE END OF SUBSECTION (A) THEREOF THE
FOLLOWING NEW PARAGRAPHS:
"(4)(A) IT IS THE INTENTION OF CONGRESS THAT THE CORPORATION ACHIEVE
PARTICIPATION BY PRIVATE INSURANCE COMPANIES, MULTILATERAL
ORGANIZATIONS, OR OTHERS IN LIABILITIES INCURRED IN RESPECT OF THE RISKS
REFERRED TO IN PARAGRAPH (1) (A) AND (B) OF THIS SUBSECTION UNDER
CONTRACTS ISSUED ON AND AFTER JANUARY 1, 1975, OF AT LEAST 25 PER
CENTUM, AND, UNDER CONTRACTS ISSUED ON AND AFTER JANUARY 1, 1978, OF AT
LEAST 50 PER CENTUM. IF FOR GOOD REASON IT IS NOT POSSIBLE FOR THE
CORPORATION TO ACHIEVE EITHER SUCH PERCENTAGE OF PARTICIPATION, THE
CORPORATION SHALL REPORT IN DETAIL TO THE COMMITTEE ON FOREIGN RELATIONS
OF THE SENATE AND THE COMMITTEE ON FOREIGN AFFAIRS OF THE HOUSE OF
REPRESENTATIVES THE REASONS FOR ITS INABLILITY TO ACHIEVE EITHER SUCH
PERCENTAGE OF PARTICIPATION, AND THE DATE BY WHICH SUCH PERCENTAGE IS TO
BE ACHIEVED.
"(B) THE CORPORATION SHALL NOT PARTICIPATE AS INSURER UNDER CONTRACTS
OF INSURANCE ISSUED AFTER DECEMBER 31, 1979, IN RESPECT OF THE RISKS
REFERRED TO IN PARAGRAPH (1) (A) AND (B) OF THIS SUBSECTION UNLESS
CONGRESS BY LAW MODIFIES THIS PARAGRAPH.
"(5) (A) IT IS THE INTENTION OF CONGRESS THAT THE CORPORATION ACHIEVE
PARTICIPATION BY PRIVATE INSURANCE COMPANIES, MULTILATERAL
ORGANIZATIONS, OR OTHERS IN LIABILITIES INCURRED IN RESPECT OF THE RISKS
REFERRED TO IN PARAGRAPH (1) (C) OF THIS SUBSECTION UNDER CONTRACTS
ISSUED ON AND AFTER JANUARY 1, 1976, OF AT LEAST 12 1/2 PER CENTUM, AND,
UNDER CONTRACTS ISSUED ON AND AFTER JANUARY 1, 1979, OF AT LEAST 40 PER
CENTUM. IF FOR GOOD REASON IT IS NOT POSSIBLE FOR THE CORPORATION TO
ACHIEVE EITHER SUCH PERCENTAGE OF PARTICIPATION, THE CORPORATION SHALL
REPORT IN DETAIL TO THE COMMITTEE ON FOREIGN RELATIONS OF THE SENATE AND
THE COMMITTEE ON FOREIGN AFFAIRS OF THE HOUSE OF REPRESENTATIVES THE
REASONS FOR ITS INABLILTY TO ACHIEVE EITHE SUCH PERCENTAGE OF
PARTICIPATION AND THE DATE BY WHICH SUCH PERCENTAGE IS TO BE ACHIEVED.
"(B) THE CORPORATION SHALL NOT PARTICIPATE AS INSURER UNDER CONTRACTS
OF INSURANCE ISSUED AFTER DECEMBER 31, 1980, IN RESPECT OF THE RESKS
REFERRED TO IN PARAGRAPH (1) (C) OF THIS SUBSECTION UNLESS CONGRESS BY
LAW MODIFIES THIS PARAGRAPH.
"(6) NOTWITHSTANDING ANY OF THE PERCENTAGES OF PARTICIPATION UNDER
PARAGRAPHS (4) (A) AND (5) (A) OF THIS SUBSECTION, THE CORPORATION MAY
AGREE TO ASSUME LIABILITY AS INSURER FOR ANY CONTRACT OF INSURANCE, OR
SHARE THEREOF, THAT A PRIVATE INSURANCE COMPANY, MULTILATERAL
ORGANIZATION, OR ANY OTHER PERSON HAS ISSUED IN RESPECT OF THE RISKS
REFERRED TO IN PARAGRAPH (1) OF THIS SUBSECTION, AND NEITHER THE
EXECUTION OF ANY SUCH AGREEMENT TO ASSUME LIABILITY NOR ITS PERFORMANCE
BY THE CORPORATION SHALL BE CONSIDERED AS PARTICIPATION BY THE
CORPORATION IN ANY SUCH CONTRACT FOR PURPOSES OF SUCH PERCENTAGES OF
PARTICIPATION. ON AND AFTER JANUARY 1, 1981, THE CORPORATION SHALL NOT
ENTER INTO ANY SUCH AGREEMENT TO ASSUME LIABILITY.
"(7) ON AND AFTER DECEMBER 31, 1979, THE CORPORATION SHALL NOT MANAGE
DIRECT INSURANCE ISSUED AFTER SUCH DATE IN RESPECT OF RISKS REFERRED TO
IN PARAGRAPH (1) (A) OR (B) OF THIS SUBSECTION UNLESS CONGRESS BY LAW
MODIFIES THIS SENTENCE. ON AND AFTER DECEMBER 31, 1980, THE CORPORATION
SHALL NOT MANAGE DIRECT INSURANCE ISSUED AFTER SUCH DATE IN RESPECT OF
RISKS REFERRED TO IN PARAGRAPH (1) (C) OF THIS SUBSECTION UNLESS
CONGRESS BY LAW MODIFIES THIS SENTENCE. IT SHALL THEREAFTER ACT SOLELY
AS A REINSURER EXCEPT TO THE EXTENT NECESSARY TO MANAGE ITS OUTSTANDING
INSURANCE AND REINSURANCE CONTRACTS AND ANY CONTRACTS OF INSURANCE THE
CORPORATION ASSUMES PURSUANT TO PARAGRAPH (6)."; AND
(D) BY ADDING AT THE END THEREOF THE FOLLOWING NEW
SUBSECTION:
"(F) OTHER INSURANCE FUNCTIONS.--(1) TO MAKE AND CARRY OUT CONTRACTS
OF INSURANCE OR REINSURANCE, OR AGREEMENTS TO ASSOCIATE OR SHARE RISKS,
WITH INSURANCE COMPANIES, FINANCIAL INSTITUTIONS, ANY OTHER PERSONS, OR
GROUPS THEREOF, AND EMPLOYING THE SAME, WHERE APPROPRIATE, AS ITS AGENT,
OR ACTING AS THEIR AGENT, IN THE ISSUANCE AND SERVICING OF INSURANCE,
THE ADJUSTMENT OF CLAIMS, THE EXERCISE OF SUBROGATION RIGHTS THE CEDING
AND ACCEPTING OF REINSURANCE, AND IN ANY OTHER MATTER INCIDENT TO AN
INSURANCE BUSINESS.
"(2) TO ENTER INTO POOLING OR OTHER RISK-SHARING ARRANGEMENTS WITH
OTHER NATIONAL OR MULTINATIONAL INSURANCE OR FINANCING AGENCIES OR
GROUPS OF SUCH AGENCIES.
"(3) TO HOLD AN OWNERSHIP INTEREST IN ANY ASSOCIATION OR OTHER ENTITY
ESTABLISHED FOR THE PURPOSES OF SHARING RISKS UNDER INVESTMENT
INSURANCE.
"(4) TO ISSUE, UPON SUCH TERMS AND CONDITIONS AS IT MAY DETERMINE,
REINSURANCE OF LIABILITIES ASSUMED BY OTHER INSURERS OR GROUPS THEREOF
IN RESPECT OF RISKS REFERRED TO IN SUBSECTION (A)(1). THE AUTHORITY
GRANTED BY PARAGRAPH (3) MAY BE EXERCISED NOTWITHSTANDING THE
PROHIBITION UNDER SUBSECTION (C) AGAINST THE CORPORATION PURCHASING OR
INVESTING IN ANY STOCK IN ANY OTHER CORPORATION. THE AMOUNT OF
REINSURANCE OF LIABILITIES UNDER THIS TITLE WHICH THE CORPORATION MAY
ISSUE SHALL NOT EXCEED $600,000,000 IN ANY ONE YEAR, AND THE AMOUNT OF
SUCH REINSURANCE SHALL NOT IN THE AGGREGATE EXCEED AT ANY ONE TIME AN
AMOUNT EQUAL TO THE AMOUNT AUTHORIZED FOR THE MAXIMUM CONTINGENT
LIABILITY OUTSTANDING AT ANY ONE TIME UNDER SECTION 235 (A) (1). //83
STAT. 813, 22 USC 2195.// ALL REINSURANCE ISSUED BY THE CORPORATION
UNDER THIS SUBSECTION SHALL REQUIRE THAT THE REINSURED PARTY RETAIN FOR
HIS OWN ACCOUNT SPECIFIED PORTIONS OF LIABILITY, WHETHER FIRST LOSS OR
OTHERWISE, AND THE CORPORATION SHALL ENDEAVOR TO INCREASE SUCH SPECIFIED
PORTIONS TO THE MAXIMUM EXTENT POSSIBLE."
(3) IN SECTION 235-- //83 STAT. 813; 87 STAT. 717, 22 USC 2195.//
(A) STRIKE OUT "1974" IN SUBSECTION (A)(4) AND INSERT IN LIEU
THEREOF "1977";
(B) IN SUBSECTION (D), STRIKE OUT "INSURANCE ISSUED UNDER
SECTION 234 (A)" AND INSERT IN LIEU THEROF THE FOLLOWING:
"INSURANCE OR REINSURANCE ISSUED UNDER SECTION 234"; AND //ANTE,
P. 764.//
(C) STRIKE OUT SUBSECTION (F) AND INSERT IN LIEU THEREOF THE
FOLLOWING:
"(F) THERE ARE AUTHORIZED TO BE APPROPRIATED TO THE CORPORATION, TO
REMAIN AVAILABLE UNTIL EXPENDED, SUCH AMOUNTS AS MAY BE NECESSARY FROM
TIME TO TIME TO REPLENISH OR INCREASE THE INSURANCE AND GUARANTY FUND,
TO DISCHARGE THE LIABILITIES UNDER INSURANCE, REINSURANCE, OR GUARANTIES
ISSUED BY THE CORPORATION OR ISSUED UNDER PREDECESSOR GUARANTY
AUTHORITY, OR TO DISCHARGE OBLIGATIONS OF THE CORPORATION PURCHASED BY
THE SECRETARY OF THE TREASURY PURSUANT TO THIS SUBSECTION. HOWEVER, NO
APPROPRIATIONS SHALL BE MADE TO AUGMENT THE INSURANCE RESERVE UNTIL THE
AMOUNT OF FUNDS IN THE INSURANCE RESERVE IS LESS THAN $25,000,000. ANY
APPROPRIATIONS TO AUGMENT THE INSURANCE RESERVE SHALL THEN ONLY BE MADE
EITHER PURSUANT TO SPECIFIC AUTHORIZATION ENACTED AFTER THE DATE OF
ENACTMENT OF THE OVERSEAS PRIVATE INVESTMENT CORPORATION AMENDMENTS ACT
OF 1974, OR TO SATISFY THE FULL FAITH AND CREDIT PROVISION OF SECTION
237 (C). IN ORDER TO DISCHARGE LIABILITIES UNDER INVESTMENT INSURANCE
OR REINSURANCE, THE CORPORATION IS AUTHORIZED TO ISSUE FROM TIME TO TIME
FOR PURCHASE BY THE SECRETARY OF THE TREASURY ITS NOTES, DEBENTURES,
BONDS, OR OTHER OBLIGATIONS; BUT THE AGGREGATE AMOUNT OF SUCH
OBLIGATIONS OUTSTANDING AT ANY ONE TIME SHALL NOT EXCEED $100,000,000.
ANY SUCH OBLIGATION SHALL BE REPAID TO THE TREASURY WITHIN ONE YEAR
AFTER THE DATE OF ISSUE OF SUCH OBLIGATION. ANY SUCH OBLIGATION SHALL
BEAR INTEREST AT A RATE DETERMINED BY THE SECRETARY OF THE TREASURY,
TAKING INTO CONSIDERATION THE CURRENT AVERAGE MARKET YIELD ON
OUTSTANDING MARKETABLE OBLIGATIONS OF THE UNITED STATES OF COMPARABLE
MATURITIES DURING THE MONTH PRECEDING THE ISSUANCE OF ANY OBLIGATION
AUTHORIZED BY THIS SUBSECTION. THE SECRETARY OF THE TREASURY SHALL
PURCHASE ANY OBLIGATION OF THE CORPORATION ISSUED UNDER THIS SUBSECTION,
AND FOR SUCH PURCHASE HE MAY USE AS A PUBLIC DEBT TRANSACTION THE
PROCEEDS OF THE SALE OF ANY SECURITIES ISSUED UNDER THE SECOND LIBERTY
BOND ACT AFTER THE DATE OF ENACTMENT OF THE OVERSEAS PRIVATE INVESTMENT
CORPORATION AMENDMENTS ACT OF 1974. //40 STAT. 288, 31 USC 774.// THE
PURPOSE FOR WHICH SECURITIES MAY BE ISSUED UNDER SUCH BOND ACT SHALL
INCLUDE ANY SUCH PURCHASE."
(4) IN SECTION 237-- //83 STAT. 814, 22 USC 2197.//
(A) IN SUBSECTION (A), STRIKE OUT "AND GUARANTIES" AND INSERT
IN LIEU THEREOF A COMMA AND "GUARANTIES, AND REINSURANCE"; AND
STRIKE OUT "OR GUARANTIES" AND INSERT IN LIEU THEREOF A COMMA AND
"GUARANTIES, OR REINSURANCE";
(B) IN SUBSECTION (B), STRIKE OUT "OR GUARANTY" IN BOTH PLACES
AND INSERT IN LIEU THEREOF IN BOTH PLACES THE FOLLOWING: ",
GUARANTY OR REINSURANCE";
(C) IN SUBSECTION (C), INSERT ", REINSURANCE," AFTER
"INSURANCE" IN BOTH PLACES IT OCCURS:
(D) STRIKE OUT SUBSECTION (D) AND INSERT IN LIEU THEREOF THE
FOLLOWING:
"(D) FEES SHALL BE CHARGED FOR INSURANCE, GUARANTY, AND REINSURANCE
COVERAGE IN AMOUNTS TO BE DETERMINED BY CORPORATION. IN THE EVENT FEES
CHARGED FOR INVESTMENT INSURANCE, GUARANTIES, OR REINSURANCE ARE
REDUCED, FEES TO BE PAID UNDER EXISTING CONTRACTS FOR THE SAME TYPE OF
INSURANCE, GUARANTIES, OR REINSURANCE AND FOR SIMILAR GUARANTIES ISSUED
UNDER PREDECESSOR GUARANTY AUTHORITY MAY BE REDUCED.";
(E) IN SUBSECTION (E), STRIKE OUT "OR GUARANTY" AND INSERT IN
LIEU THEREOF A COMMA AND "GUARANTY, OR REINSURANCE";
(F) IN SUBSECTION (F), INSERT ",REINSURANCE," AFTER "INSURANCE"
IN BOTH PLACES IT OCCURS;
(G) ADD AT THE END OF SUBSECTION (F) THE FOLLOWING:
"NOTWITHSTANDING THE PRECEDING SENTENCE, THE CORPORATION SHALL
LIMIT THE AMOUNT OF DIRECT INSURANCE AND REINSURANCE ISSUED BY IT
UNDER SECTION 234 //ANTE, P. 764.// SO THAT RISK OF LOSS AS TO AT
LEAST 10 PER CENTUM OF THE TOTAL INVESTMENT OF THE INSURED AND ITS
AFFILIATES IN TH PROJECT IS BORNE BY THE INSURED AND SUCH
AFFILIATES. THE PRECEDING SENTENCE SHALL NOT APPLY TO THE EXTENT
NOT PERMITTED BY STATE LAW.";
(H) IN SUBSECTION (G), AFTER "GUARANTY", INSERT A COMMA AND
"INSURANCE, OR REINSURANCE"; //83 STAT. 814, 22 USC 2197.//
(I) IN SUBSECTION (H), STRIKE OUT "OR GUARANTIES" AND INSERT IN
LIEU THEREOF A COMMA AND "GUARANTIES, OR REINSURANCE";
(J) IN SUBSECTION (I), AFTER "INSURANCE", INSERT ",
REINSURANCE,"; AND
(K) STRIKE OUT SUBSECTION (K) AND INSERT IN LIEU THEREOF THE
FOLLOWING:
"(K) IN MAKING A DETERMINATION TO ISSUE INSURANCE, GUARANTIES, OR
REINSURANCE UNDER THIS TITLE, THE CORPORATION SHALL CONSIDER THE
POSSIBLE ADVERSE EFFECT OF THE DOLLAR INVESTMENT UNDER SUCH INSURANCE,
GUARANTY, OR REINSURANCE UPON THE BALANCE OF PAYMENTS OF THE UNITED
STATES."
(5) IN SECTION 239-- //83 STAT. 816, 22 USC 2199.//
(A) IN SUBSECTION (B), ADD THE FOLLOWING NEW SENTENCES AT THE
END THEREOF: "ON DECEMBER 31, 1979, THE CORPORATION SHALL CEASE
OPERATING THE PROGRAMS AUTHORIZED BY SECTION 234 (B) //83 STAT.
812, 22 USC 2194.// THROUGH (E) AND SECTION 240. //83 STAT. 817,
22 USC 2200.// THEREAFTER, THE PRESIDENT IS AUTHORIZED TO TRANSFER
SUCH PROGRAMS, AND ALL OBLIGATIONS, ASSETS, AND RELATED RIGHTS AND
RESPONSIBILITIES ARISING OUT OF, OR RELATED TO, SUCH PROGRAMS TO
OTHER AGENCIES OF THE UNITED STATES. UPON ANY SUCH TRANSFER,
THESE PROGRAMS SHALL BE LIMITED TO COUNTRIES WITH PER CAPITA
INCOME OF $450 OR LESS IN 1973 DOLLARS."; AND
(B) ADD AT THE END THEREOF THE FOLLOWING:
"(H) WITHIN SIX MONTHS AFTER THE DATE OF ENACTMENT OF THIS SUBSECTION
THE CORPORATION SHALL DEVELOP AND IMPLEMENT SPECIFIC CRITERIA INTENDED
TO MINUMIZE THE POTENTIAL ENVIRONMENTAL IMPLICATIONS OF PROJECTS
UNDERTAKEN BY INVESTORS ABROAD IN ACCORDANCE WITH ANY OF THE PROGRAMS
AUTHORIZED BY THIS TITLE."
(6) IN SECTION 240 (H), 87 STAT. 717, 22 USC 2200.// STRIKE OUT
"1974" AND INSERT IN LIEU THEREOF "1977".
(7) IN SECTION 240A, //83 STAT. 818, 22 USC 2200A.// STRIKE OUT
SUBSECTION (B) AND INSERT IN LIEU THEREOF THE FOLLOWING:
"(B) NOT LATER THAN JANUARY 1, 1976, THE CORPORATION SHALL SUBMIT TO
THE CONGRESS AN ANALYSIS OF THE POSSIBILITIES OF TRANSFERRING ALL OF ITS
ACTIVITIES TO PRIVATE INSURANCE COMPANIES, MULTILATERAL ORGANIZATIONS
AND INSTITUTIONS, OR OTHER ENTITIES"
LEGISLATIVE HISTORY:
HOUSE REPORTS: NO. 93 - 1026 ACCOMPANYING H.R. 13973 (COMM. ON
FOREIGN AFFAIRS) AND NO. 93 - 1233 (COMM. OF CONFERENCE).
SENATE REPORT NO. 93 - 676 (COMM. ON FOREIGN RELATIONS).
CONGRESSIONAL RECORD, VOL. 120 (1974):
FEB. 25, 26, CONSIDERED AND PASSED SENATE.
MAY 16, CONSIDERED AND PASSED HOUSE, AMENDED, IN LIEU OF H.R.
13973.
AUG. 8, HOUSE AGREED TO CONFERENCE REPORT.
AUG. 13, SENATE AGREED TO CONFERENCE REPORT.
PUBLIC LAW 93-389, 88 STAT 763
BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE
UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT (A) SECTION 303 (C)
OF THE DISTRICT OF COLUMBIA MEDICAL AND DENTAL MANOPOWER ACT OF 1970
D.C. CODE, SEC. 31 - 922 (C) //84 STAT. 1934, D.C. CODE 31 - 922.// IS
AMENDED TO READ AS FOLLOWS:
"(C) THERE ARE AUTHORIZED TO BE APPROPRIATED SUCH SUMS AS MAY BE
NECESSARY FOR THE FISCAL YEARS ENDING JUNE 30, 1975, AND JUNE 30, 1976,
TO MAKE GRANTS UNDER THIS SECTION.".
(B) SECTION 303 (B) OF SUCH ACT IS AMENDED BY STRIKING OUT "SECTION
772 OF THE PUBLIC HEALTH SECVICE ACT (42 U.S.C. 295F-2)" //85 STAT, 446,
42 USC 295F - 3.// AND INSERTING IN LIEU THEREOF "SECTION 773 OF THE
PUBLIC HEALTH SERVICE ACT".
LEGISLATIVE HISTORY:
HOUSE REPORT NO. 93 - 1200 (COMM. ON THE DISTRICT OF COLUMBIA).
SENATE REPORT NO. 93 - 1074 (COMM. ON THE DISTRICT OF COLUMBIA).
CONGRESSIONAL RECORD, VOL. 120 (1974):
JULY 29, CONSIDERED AND PASSED HOUSE.
AUG. 8, CONSIDERED AND PASSED SENATE.
PUBLIC LAW 93-388, 88 STAT 752, HOLDING COMPANY SYSTEM REGULATORY
ACT.
BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE
UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT THIS ACT MAY BE
CITED AS THE "HOLDING COMPANY SYSTEM REGULATORY ACT". //D.C. CODE 53 -
1901 NOTE.//
SEC. 2. DEFINITIONS.--ASUSED IN THIS ACT, UNLESS THE CONTEXT
OTHERWISE REQUIRES-- //D.C. CODE 35 - 1901.//
(A) "AFFILIATE" (AN "AFFILIATE" OF, OR PERSON "AFFILIATED" WITH
A SPECIFIC PERSON), MEANS A PERSON THAT DIRECTLY, OR INDIRECTLY
THROUGH ONE OR MORE INTERMIDIARIES, CONTROLS, OR IS CONTROLLED BY
OR IS UNDER COMMON CONTROL WITH, THE PERSON SPECIFIED;
(B) "COMMISSIONER" MEANS THE COMMISSIONER OF THE DISTRICT OF
COLUMBIA OR HIS DESIGNATED AGENT;
(C) "CONTROL" (INCLUDING THE TERMS "CONTROLLING", CONTROLLED
BY" AND "UNDER COMMON CONTROL WITH") MEANS THE POSSESSION, DIRECT
OR INDIRECT, OF THE POWER TO DIRECT OR CAUSE THE DIRECTION OF THE
MANAGEMENT AND POLICIES OF A PERSON, WHETHER THROUGH THE OWNERSHIP
OF VOTING SECURITIES, BY CONTRACT OTHER THAN A COMMERCIAL COMTRACT
FOR GOODS OR NONMANAGEMENT SERVICES, OR OTHERWISE, UNLESS THE
POWER IS THE RESULT OF AN OFFICIAL POSITION WITH OR CORPORATE
OFFICE HELD BY THE PERSON. CONTROL SHALL BE PRESUMED TO EXIST IF
ANY PERSON, DIRECTLY OR INDIRECTLY, OWNS, CONTROLS, HOLDS WITH THE
POWER TO VOTE, OR HOLDS PROXIES REPRESENTING 10 PER CENTUM OR MORE
OF THE VOTING SECURITIES OF ANY OTHER PERSON;
(D) "DISTRICT" MEANS THE DISTRICT OF COLUMBIA;
(E) "INSURANCE HOLDING COMPANY SYSTEM" CONSISTS OF TWO OR MORE
AFFILIATED PERSONS, ONE OR MORE OF WHICH IS AN INSURER;
(F) "INSURER" INCLUDES ANY COMPANY DEFINED BY SECTION 2,
CHAPTER I, OF THE LIFE INSURANCE ACT (D.C. CODE, SEC. 35 - 302)
//48 STAT. 1128.// AND BY SECTION 3, CHAPTER 1, OF THE FIRE AND
CASUALTY ACT (D.C. CODE, SEC. 35 - 1303); //54 STAT. 1064.//
AUTHORIZED TO DO THE BUSINESS OF INSURANCE IN THE DISTRICT, EXCEPT
THAT IT SHALL NOT INCLUDE AGENCIES, AUTHORITIES, OR
INSTRUMENTALITIES OF THE UNITED STATES, ITS POSSESSIONS AND
TERRITORIES, THE COMMONWEALTH OF PUERTO RICO, THE DISTRICT OF
COLUMBIA, OR A STATE OR POLITICAL SUBDIVISION OF A STATE;
(G) "PERSON" IS AN INDIVIDUAL, A CORPORATION, A PARTNERSHIP, AN
ASSOCIATION, A JOINT STOCK COMPANY, A TRUST, AN UNINCORPORATED
ORGANIZATION, ANY SIMILAR ENTITY, OR ANY COMBINATION OF THE
FOREGOING ACTING IN CONCERT, BUT SHALL NOT INCLUDE ANY SECURITIES
BROKER PERFORMING NO MORE THAN THE USUAL AND CUSTOMARY BROKER'S
FUNCTION;
(H) "SECURITHOLDER" OF A SPECIFIED PERSON IS ONE WHO OWNS ANY
SECURITY OF SUCH PERSON, INCLUDING COMMON STOCK, PREFERRED STOCK,
DEBT OBLIGATIONS, AND ANY OTHER SECURITY CONVERTIBLE INTO OR
EVIDENCING THE RIGHT TO ACQUIRE ANY OF THE FOREGOING;
(I) "SUBSIDIARY" OF A SPECIFIED PERSON IS AN AFFILATE
CONTROLLED BY SUCH PERSON DIRECTLY, OR INDIRECTLY THROUGH ONE OR
MORE INTERMEDIARIES; AND
(J) "VOTING SECURITY" INCLUDES ANY SECURITY CONVERTIBLE INTO OR
EVIDENCING A RIGHT OT ACQUIRE A VOTING SECURITY.
SUBSIDIARIES OF INSURERS //D.C. CODE 35 - 1902.//
SEC. 3. (A) AUTHORIZATION.--AND DOMESTIC INSURER, EITHER BY ITSELF
OR IN COOPERATION WITH ONE OR MORE PERSONS, MAY, SUBJECT TO THE
LIMITATION STATED IN SUBSECTION (B) OF THIS SECTION, ORGANIZE OR ACQUIRE
ONE OR MORE SUBSIDIARIES. SUCH SUBSIDIARIES MAY CONDUCT ANY KIND OF
BUSINESS OR BUSINESSES AND THEIR AUTHORITY TO DO SO SHALL NOT BE LIMITED
BY REASON OF THE FACT THAT THEY ARE SUBSIDIARIES OF A DOMESTIC INSURER.
(B) LIMITED ADDITIONAL INVESTMENT AUTHORITY.--(1) THE TOTAL AMOUNT
WHICH A DOMESTIC INSURER MAY INVEST IN THE COMMON STOCK, PREFERRED
STOCK, DEBT OBLIGATIONS, AND OTHER SECURITIES OF THE SUBSIDIARIES
REFERRED TO IN SUBSECTION (A) OF THIS SECTION SHALL NOT EXCEED THE
LESSER OF (A) 5 PER CENTUM OF SUCH INSURER'S ASSETS, OR (B) IN THE CASE
OF A CAPITAL STOCK COMPANY, 50 PER CENTUM OF THE EXCESS OF ITS CAPITAL,
SURPLUS, AND CONTINGENCY RESERVES OVER THE THEN REQUIRED STATUTORY
MINIMUM CAPITAL AND SURPLUS, OR, IN THE CASE OF A MUTUAL COMPANU, 50 PER
CENTUM OF THE EXCESS OF ITS SURPLUS AND CONTINGENCY RESERVES OVER THE
THEN REQUIRED STATUTORY MINIMUM SURPLUS.
(2) IN CALCULATING THE AMOUNT OF SUCH INVESTMENTS, THERE SHALL BE
INCLUDED (A) TOTAL NET MONEYS OR OTHER CONSIDERATION EXPENDED AND
OBLIGATIONS ASSUMED IN THE ACQUISITION OF FORMATION OF A SUBSIDIARY,
INCLUDING ALL ORGANIZATIONAL EXPENSES AND CONTRIBUTIONS TO CAPITAL AND
SURPLUS OF SUCH SUBSIDIARY, WHETHER OR NOT REPRESENTED BY THE PURCHASE
OF CAPITAL STOCK OR ISSUANCE OF OTHER SECURITIES, AND (B) ALL AMOUNTS
EXPENDED IN ACQUIRING ADDITIONAL COMMON STOCK, PREFERRED STOCK, DEBT
OBLIGATIONS, AND OTHER SECURITIES, AND ALL CONTRIBUTIONS TO THE CAPITAL
OR SURPLUS OF A SUBSIDIARY SUBSEQUENT TO ITS ACQUISITION OR FORMATION.
(C) EXEMPTIONS FROM INVESTMENT RESTRICTIONS.--THE INVESTMENTS
PERMITTED UNDER THIS SECTION SHALL BE IN ADDITION TO THE INVESTMENTS IN
COMMON STOCK, PREFERRED STOCK, DEBT OBLIGATIONS, AND OTHER SECURITIES
PERMITTED UNDER SECTIONS 35 AND 41 OF CHAPTER III OF THE LIFE INSURANCE
ACT (D.C. CODE, SECS. 35 - 535 AND 35 - 541) //62 STAT. 480; 74 STAT.
863; 87 STAT. 303.// AND SECTION 18, CHAPTER II, OF THE FIRE AND
CASUALTY ACT (D.C. CODE, SEC. 35 - 1321), //74 STAT. 218, 54 STAT.
1072; 76 STAT. 715.// AND THE INVESTMENTS UNDER THIS SECTION SHALL NOT
BE SUBJECT TO ANY OF THE OTHERWISE APPLICABLE RESTRICTIONS OR
PROHIBITIONS CONTAINED IN THE AFORESAID SECTIONS OF LAW APPLICABLE TO
SUCH INVESTMENTS OF INSURERS.
(D) QUALIFICATIONS OF INVESTMENT: WHEN DETERMINED.-- WHETHER ANY
INVESTMENT PURSUANT TO THIS SECTION MEETS THE APPLICABLE REQUIREMENTS
THEREOF IS TO BE DETERMINED IMMEDIATELY AFTER SUCH INVESTMENT IS MADE,
TAKING INTO ACCOUNT THE THEN OUTSTANDING PRINCIPAL BALANCE OF ALL
PREVIOUS INVESTMENTS AND DEBT OBLIGATIONS AND THE VALUE OF ALL PREVIOUS
INVESTMENTS IN EQUITY SECURITIES AS OF THE DATE OF THE NEW INVESTMENT.
(E) CESSATION OF CONTROL.--IF AN INSURER CEASES TO CONTROL A
SUBSIDIARY, IT SHALL DISPOSE OF ANY INVESTMENT THEREIN MADE PURSUANT TO
THIS SECTION WITHIN THREE YEARS FROM THE TIME OF THE CESSATION OF
CONTROL OR WITHIN SUCH FURTHER TIME AS THE COMMISSIONER MAY PRESCRIBE,
UNLESS AT ANY TIME AFTER SUCH INVESTMENT WAS MADE, SUCH INVESTMENT MEETS
THE REQUIREMENTS FOR INVESTMENT UNDER SECTIONS 35 AND 41, CHAPTER III,
OF THE LIFE INSURANCE ACT (D.C. CODE, SECS. 35 - 535 AND 35 - 541) AND
SECTION 18, CHAPTER II, OF THE FIRE AND CASUALTY ACT (D.C. CODE, SEC. 35
- 1521), AND THE INSURER HAS NOTIFIED THE COMMISSIONER THEREOF.
ACQUISITION OF CONTROL OF OR MERGER WITH DOMESTIC INSURER //
D.C. CODE 35 - 1903.//
SEC. 4. (A) FILING REQUIREMENTS.--NO PERSON OTHER THAN THE ISSUER
SHALL MAKE A TENDER OFFER FOR OR A REQUEST OR INVITATION FOR TENDERS OF,
OR ENTER INTO ANY AGREEMENT TO EXCHANGE SECURITIES FOR, SEEK TO ACQUIRE,
OR ACQUIRE, IN THE OPEN MARKET OR OTHERWISE, ANY VOTING SECURITY OF A
DOMESTIC INSURER IF, AFTER THE CONSUMMATION THEREOF, SUCH PERSON WOULD
DIRECTLY OR INDIRECTLY (OR BY CONVERSION OR BY EXERCISE OF ANY RIGHT TO
ACQUIRE) BE IN CONTROL OF SUCH INSURER, AND NO PERSON SHALL ENTER INTO
AN AGREEMENT TO MERGE WITH OR OTHERWISE TO ACQUIRE CONTROL OF A DOMESTIC
UNSURER, UNLESS, AT THE TIME ANY SUCH OFFER, REQUEST, OR INVITATION IS
MADE OR ANY SUCH AGREEMENT IS ENTERED INTO, OR PRIOR TO THE ACQUISITION
OF SUCH SECURITIES IF NO OFFER OR AGREEMENT IS INVOLVED, SUCH PERSON HAS
FILED WITH THE COMMISSIONER AND HAS SENT TO SUCH INSURER, AND SUCH
INSURER HAS SENT TO ITS SHAREHOLDERS, A STATEMENT CONTAINING THE
INFORMATION REQUIRED BY THIS SECTION AND SUCH OFFER, REQUEST,
INVITATION, AGREEMENT, OR ACQUISITION HAS BEEN APPROVED BY THE
COMMISSIONER IN THE MANNER HEREINAFTER PRESCRIBED. FOR PURPOSES OF THIS
SECTION A DOMESTIC INSURER SHALL INCLUDE ANY OTHER PERSON CONTROLLING A
DOMESTIC INSURER UNLESS SUCH OTHER PERSON IS EITHER DIRECTLY OR THROUGH
ITS AFFILIATES PRIMARILY ENGAGED IN BUSINESS OTHER THAN THE BUSINESS OF
INSURANCE.
(B) CONTENT OF STATEMENT.--THE STATEMENT TO BE FILED WITH THE
COMMISSIONER HEREUNDER SHALL BE MADE UNDER OATH OR AFFIRMATION AND SHALL
CONTAIN THE FOLLOWING INFORMATION:
(1) THE NAME AND ADDRESS OF EACH PERSON BY WHOM OR ON WHOSE BEHALF
THE MERGER OR OTHER ACQUISITION OF CONTROL REFERRED TO IN SUBSECTION (A)
IS TO BE EFFECTED (HEREINAFTER CALLED "ACQUIRING PARTY"), AND
(A) IF SUCH PERSON IS AN INDIVIDUAL, HIS PRINCIPAL OCCUPATION
AND ALL OFFICES AND POSITIONS HELD DURING THE PAST FIVE YEARS, AND
ANY CONVICTION OF CRIMES OTHER THAN MINOR TRAFFIC VIOLATIONS
DURING THE PAST TEN YEARS;
(B) IF SUCH PERSON IS NOT AN INDIVIDUAL, A REPORT OF THE NATURE
OF ITS BUSINESS OPERATIONS DURING THE PAST FIVE YEARS OR FOR SUCH
LESSER PERIOD AS SUCH PERSON AND ANY PREDECESSORS THEREOF SHALL
HAVE BEEN IN EXISTENCE; AN INFORMATIVE DESCRIPTION OF THE
BUSINESS INTENDED TO BE DONE BY SUCH PERSON AND SUCH PERSON'S
SUBSIDIARIES AND A LIST OF ALL INDIVIDUALS WHO ARE OR WHO HAVE
BEEN SELECTED TO BECOME DIRECTORS OR EXECUTIVE OFFICERS OF SUCH
PERSON, OR WHO PERFORM OR WILL PERFORM FUNCTIONS APPROPRIATE TO
SUCH POSITIONS. SUCH LIST SHALL INCLUDE FOR EACH SUCH INDIVIDUAL
THE INFORMATION REQUIRED BY SUBPARAGRAPH (A) OF THIS SUBSECTION.
(2) THE SOURCE, NATURE, AND AMOUNT OF THE CONSIDERATION USED OR TO BE
USED IN EFFECTING THE MERGER OR OTHER ACQUISITION OF CONTROL, A
DESCRIPTION OF ANY TRANSACTION WHEREIN FUNDS WERE OR ARE TO BE OBTAINED
FOR ANY SUCH PURPOSE, AND THE IDENTITY OF PERSONS FURNISHING SUCH
CONSIDERATION: PROVIDED, THAT WHERE A SOURCE OF SUCH CONSIDERATION IS A
LOAN MADE IN THE LENDER'S ORDINARY COURSE OF BUSINESS, THE IDENTITY OF
THE LENDER SHALL REMAIN CONFIDENTIAL, IF THE PERSON FILING SUCH
STATEMENT SO REQUESTS.
(3) FULLY AUDITED FINANCIAL INFORMATION AS TO THE EARNINGS AND
FINANCIAL CONDITION OF EACH ACQUIRING PARTY FOR THE PRECEDING FIVE
FISCAL YEARS OF EACH SUCH ACQUIRING PARTY (OR FOR SUCH LESSER PERIOD AS
SUCH ACQUIRING PARTY AND ANY PREDECESORS THEREOF SHALL HVE BEEN IN
EXISTENCE), AND SIMILAR UNAUDITED INFORMATION AS OF A DATE NOT EARLIER
THAN NINETY DAYS PRIOR TO THEFILING OF THE STATEMENT.
(4) ANY PLANS OR PROPOSALS WHICH EACH ACQUIRING PARTY MAY HAVE TO
LIQUIDATE SUCH INSURER, TO SELL ITS ASSETS OR MERGE OR CONSOLIDATE IT
WITH ANY PERSON, OR TO MAKE ANY OTHER MATERIAL CHANGE IN ITS BUSINESS OR
CORPORATE STRUCTURE OR MANAGEMENT.
(5) THE NEMBER OF SHARES OF ANY SECURITY EFERRED TO IN SUBSECTION (A)
WHICH EACH ACQUIRING PARTY PROPOSES TO ACQUIRE, AND THE TERMS OF THE
OFFER, REQUEST, INVITATION, AGREEMENT, OR ACQUISITION REFERRED TO IN
SUBSECTION (A), AND A STATEMENT AS TO THE METHOD BY WHICH THE FAIRNESS
OF THE PROPOSAL WAS ARRIVED AT.
(6) THE AMOUNT OF EACH CLASS OF ANY SECURITY REFERRED TO IN
SUBSECTION (A) WHICH IS BENEFICIALLY OWNED OR CONCERNING WHICH THERE IS
A RIGHT TO ACQUIRE BENEFICIAL OWNERSHIP BY EACH ACQUIRING PARTY.
(7) A FULL DESCRIPTION OF ANY CONTRACTS, ARRANGEMENTS, OR
UNDERSTANDINGS WITH RESPECT TO ANY SECURITY REFERRED TO IN SUBSECTION
(A) IN WHICH ANY ACQUIRING PARTY IS INVOLVED, INCLUDING BUT NOT LIMITED
TO TRANSFER OF ANY OF THE SECURITIES, JOINT VENTURES, LOAN OR OPTION
ARRANGEMENTS, PUTS OR CALLS, GUARANTEES OF LOANS, GUARANTEES AGAINST
LOSS OR GUARANTEES OF PROFITS, DIVISION OF LOSSES OR PROFITS, OR THE
GIVING OR WITHHOLDING OF PROXIES. SUCH DESCRIPTION SHALL IDENTIFY THE
PERSONS WITH WHOM SUCH CONTRACTS, ARRANGEMENTS, OR UNDERSTANDINGS HAVE
BEEN ENTERED INTO.
(8) A DESCRIPTION OF THE PURCHASE OF ANY SECURITY REFERRED TO IN
SUBSECTION (A) DURING THE TWELVE CALENDAR MONTHS PRECEDING THE FILING OF
THE STATEMENT, BY ANY ACQUIRING PARTY, INCLUDING THE DATES OF PURCHASE,
NAMES OF THE PURCHASERS, AND CONSIDERATION PAID OR AGREED TO BE PAID
THEREFOR.
(9) A DESCRIPTION OF ANY RECOMMENDATIONS TO PURCHASE ANY SECURITY
REFERRED TO IN SUBSECTION (A) MADE DURING THE TWELVE CALENDAR MONTHS
PRECEDING THE FILING OF THE STATEMENT, BY ANY ACQUIRING PARTY, OR BY
ANYONE BASED UPON INTERVIEWS OR AT THE SUGGESTION OF SUCH ACQUIRING
PARTY.
(10) COPIES OF ALL TENDER OFFERS FOR, REQUESTS OR INVITATIONS FOR
TENDERS OF EXCHANGE OFFERS FOR, AND AGREEMENTS TO ACQUIRE OR EXCHANGE
ANY SECURITIES REFERRED TO IN SUBSECTION (A), AND (IF DISTRIBUTED) OF
ADDITIONAL SOLICITING MATERIAL RELATING THERETO.
(11) THE TERMS OF ANY AGREEMENT, CONTRACT, OR UNDERSTANDING MADE WITH
ANY BROKER-DEALER AS TO SOLICITATION OF SECURITIES REFERRED TO IN
SUBSECTION (A) FOR TENDER, AND THE AMOUNT OF ANY FEES, COMMISSIONS, OR
OTHER COMPENSATION TO BE PAID TO BROKER-DEALERS WITH REGARD THERETO.
(12) SUCH ADDITIONAL INFORMATION AS THE COMMISSIONER MAY BY RULE OR
REGULATION PRESCRIBE AS NECESSARY OR APPROPRIATE FOR THE PROTECTION OF
POLICYHOLDERS AND SECURITYHOLDERS OF THE INSURER OR IN THE PUBLIC
INTEREST. IF THE PERSON REQUIRED TO FILE THE STATEMENT REFERRED TO IN
SUBSECTION (A) IS A PARTNERSHIP, LIMITED PARTNERSHIP, SYNDICATE, OR
OTHER GROUP, THE COMMISSIONER MAY REQUIRE THAT THE INFORMATION CALLED
FOR BY PARAGRAPHS (1) THROUGH (12) SHALL BE GIVEN WITH RESPECT TO EACH
PARTNER OF SUCH PARTNERSHIP OR LIMITED PARTNERSHIP, EACH MEMBER OF SUCH
SYNDICATE OR GROUP, AND EACH PERSON WHO CONTROLS SUCH PARTNER OR MEMBER.
IF ANY SUCH PARTNER, MEMBER, OR PERSON IS A CORPORATION OR THE PERSON
REQUIRED TO FILE THE STATEMENT REFERRED TO IN SUBSECTION (A) IS A
CORPORATION, THE COMMISSIONER MAY REQUIRE THAT THE INFORMATION CALLED
FOR BY PARAGRAPHS (1) THROUGH (12) SHALL BE GIVEN WITH RESPECT TO SUCH
CORPORATION, EACH OFFICER AND DIRECTOR OF SUCH CORPORATION, AND EACH
PERSON WHO IS DIRECTLY OR INDIRECTLY THE BENEFICIAL OWNER OF MORE THAN
10 PER CENTUM OF THE OUTSTANDING VOTING SECURITIES OF SUCH CORPORATION.
IF ANY MATERIAL CHANGE OCCURS IN THE FACTS SET FORTH IN THE STATEMENT
FILED WITH THE COMMISSIONER AND SENT TO SUCH INSURER PURSUANT TO THIS
SECTION, AN AMENDMENT SETTING FOR SUCH CHANGE, TOGETHER WITH COPIES OF
ALL DOCUMENTS AND OTHER MATERIAL RELEVANT TO SUCH CHANGE, SHALL BE FILED
WITH THE COMMISSIONER AND SENT TO SUCH INSURER WITHIN TWO BUSINESS DAYS
AFTER THE PERSON LEARNS OF SUCH CHANGE. SUCH INSURER SHALL SEND SUCH
AMENDMENTS TO ITS SHAREHOLDERS.
(C) ALTERNATIVE FILING MATERIALS.--IF ANY OFFER, REQUEST, INVITATION,
AGREEMENT, OR ACQUISITION REFERRED TO IN SUBSECTION (A) IS PROPOSED TO
BE MADE BY MEANS OF A REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF
1922 //48 STAT. 74, 15 USC 17A.// OR IN CIRCUMSTANCES REQUIRING THE
DISCLOSURE OF SIMILAR INFORMATION UNDER THE SECURITIES EXCHANGE ACT OF
1934, // 48 STAT. 881. 15 USC 48A.// OR UNDER A STATE LAW REQUIRING
SIMILAR REGISTRATION OR DISCLOSURE, THE PERSON REQUIRED TO FILE THE
STATEMENT REFERRED TO IN SUBSECTION (A) MAY UTILIZE SUCH DOCUMENTS IN
FURNISHING THE INFORMATION CALLED FOR BY THAT STATEMENT.
(D) APPROVAL BY COMMISSIONER; HEARINGS.--,
(1) THE COMMISSIONER SHALL APPROVE ANY MERGER OR OTHER
ACQUISITION OF CONTROL REFERRED TO IN SUBSECTION (A) UNLESS, AFTER
A PUBLIC HEARING THEREON, HE FINDSTHAT:
(A) AFTER THE CHANGE OF CONTROL THE DOMESTIC INSURER REFERRED
TO IN SUBSECTION (A) WOULD NOT BE ABLE TO SATISFY THE REQUIREMENTS
FOR THE ISSUANCE OF A LICENSE TO WRITE THE LINE OR LINES OF
INSURANCE FOR WHICH IT IS PRESENTLY LICENSED;
(B) THE EFFECT OF THE MERGER OR OTHER ACQUISITION OF CONTROL
WOULD BE SUBSTANTIALLY TO LESSON COMPETITION IN INSURANCE IN THE
DISTRICT OR TEND TO CREATE A MONOPOLY THEREIN;
(C) THE FINANCIAL CONDITION OF ANY ACQUIRING PARTY IS SUCH AS
MIGHT JEOPARDIZE THE FINANCIAL STABILITY OF THE INSURER, OR
PREDJUDICE THE INTEREST OF ITS POLICYHOLDERS OR THE INTEREST OF
ANY REMAINING SECURITY HOLDERS WHO ARE UNAFFILIATED WITH SUCH
ACQUIRING PARTY;-
(D) THE TERMS OF THE OFFER, REQUEST, INVITATION, AGREEMENT, OR
ACQUISITION REFERRED TO IN SUBSECTION (A) ARE UNFAIR AND
UNREASONABLE TO THE SECURITYHOLDERS OF THE INSURER;
(E) THE PLANS OR PROPOSALS WHICH THE ACQUIRING PARTY HAS TO
LIQUIDATE THE INSURER, SELL ITS ASSETS OR CONSOLIDATE OR MERGE IT
WITH ANY PERSON, OR TO MAKE ANY OTHER MATERIAL CHANGE IN ITS
BUSINESS OR CORPORATE STRUCTURE OR MANAGEMENT, ARE UNFAIR AND
UNREASONABLE TO POLICYHOLDERS OF THE INSURER AND NOT IN THE PUBLIC
INTEREST; OR
(F) THE COMPETENCE, EXPERIENCE, AND INTEGRITY OF THOSE PERSONS
WHO WOULD CONTROL THE OPERATION OF THE INSURER ARE SUCH THAT IT
WOULD NOT BE IN THE INTEREST OF POLICYHOLDERS OF THE INSURER OR OF
THE PUBLIC TO PERMIT THE MERGER OR OTHER ACQUISITION OF CONTROL.
(2) THE PUBLIC HEARING REFERRED TO IN PARAGRAPH (1) SHALL BE
HELD WITHIN THIRTY DAYS AFTER THE STATEMENT REQUIRED BY SUBSECTION
(A) IS FILED, AND AT LEAST TWENTY DAYS' NOTICE THEREOF SHALL BE
GIVEN BY THE COMMISSIONER TO THE PERSON FILING THE STATEMENT. NOT
LESS THAN SEVEN DAYS' NOTICE OF SUCH MPUBLIC HEARING SHALL BE
GIVEN BY THE PERSON FILING THE STATEMENT TO THE INSURER AND TO
SUCH OTHER PERSON AS MAY BE DISIGNATED BY THE COMMISSIONER. THE
INSURER SHALL GIVE SUCH NOTICE TO ITS SECURITYHOLDERS. THE
COMMISSIONER SHALL MAKE A DETERMINATION WITHIN THIRTY DAYS AFTER
THE CONCLUSION OF SUCH HEARING. AT SUCH HEARING, THE PERSON
FILING THE STATEMENT, THE INSURER, ANY PERSON TO WHOM NOTICE OF
HEARING WAS SENT, AND ANY OTHER PERSON WHOSE INTERESTS MAY BE
AFFECTED THEREBY SHALL HAVE THE RIGHT TO PRESENT EVIDENCE, EXAMINE
AND CROSS-EXAMINE WITNESSES, AND OFFER ORAL AND WRITTEN ARGUMENTS,
AND IN CONNECTION THEREWITH SHALL BE ENTITLED TO CONDUCT DISCOVERY
PROCEEDINGS IN THE SAME MANNER AS IS PRESENTLY ALLOWED IN THE
SUPERIOR COURT OF THE DISTRICT OF COLUMBIA. ALL DISCOVERY
PROCEEDINGS SHALL BE CONCLUDED NOT LATER THAN THREE DAYS PRIOR TO
THE COMMENCEMENT OF THE PUBLIC HEARING.
(E) MAILINGS TO SHAREHOLDERS; PAYMENT OF EXPENSES.--ALL STATEMENTS,
AMENDMENTS, OR OTHER MATERIAL FILED PURSUANT TO SUBSECTION (A) OR (B),
AND ALL NOTICES OF PUBLIC HEARINGS HELD PURSUANT TO SUBSECTION (D),
SHALL BE MAILED BY THE INSURER TO ITS SHAREHOLDERS WITHIN FIVE BUSINESS
DAYS AFTER THE INSURER HAS RECEIVED SUCH STATEMENTS, AMENDMENTS, OTHER
MATERIAL, OR NOTICES. THE EXPENSES OF MAILING SHALL BE BORNE BY THE
PERSON MAKING THE FILING. AS SECURITY FOR THE PAYMENT OF SUCH EXPENSES,
SUCH PERSON SHALL FILE WITH THE COMMISSIONER AN ACCEPTABLE BOND OR OTHER
DEPOSIT IN AN AMOUNT TO BE DETERMINED BY THE COMMISSIONER.
(F) EXEMPTIONS.--THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO--,
(1) ANY OFFERS, REQUESTS, INVITATIONS, AGREEMENTS, OR
ACQUSITIONS BY THE PERSON REFERRED TO IN SUBSECTION (A) OF ANY
VOTING SECURITY REFERRED TO IN SUBSECTION (A) WHICH, IMMEDIATELY
PRIOR TO THE CONSUMMATION OF SUCH OFFER, REQUEST, INVITATION,
AGREEMENT, OR ACQUISITION, WAS NOT ISSUED AND OUTSTANDING;
(2) ANY OFFER, REQUEST, INVITATION, AGREEMENT, OR ACQUISITION
IF, UNDER THE TERMS THEREOF, THE CONSUMMATION OF THE TRANSACTION
CONTEMPLATED THEREUNDER WOULD RESULT IN THE OWNERSHIP BY SECURITY
HOLDERS OF THE DOMESTIC INSURER OF STOCK PROCESSING AT LEAST 80
PER CENTUM OF THE TOTAL COMBINED VOTING POWER OF ALL CLASSES OF
STOCK OF THE ACQUIRING PARTY ENTITLED TO VOTE, OR AT LEAST 80 PER
CENTUM OF THE TOTAL COMBINED VOTING POWER OF ALL CLASSES OF STOCK
OF THE PERSON IN CONTROL OF THE ACQUIRING PARTY ENTITLED TO VOTE;
AND
(3) ANY OFFER, REQUEST, INVITATION, AGREEMENT, OR ACQUISITION
WHICH THE COMMISSIONER BY ORDER SHALL EXEMPT THEREFROM AS (A) NOT
HAVING THE EFFECT OF CHANGING OR INFLUENCING THE CONTROL OF A
DOMESTIC INSURER, OR (B) AS OTHERWISE NOT COMPREHENDED WITHIN THE
PURPOSES OF THIS SECTION.
(G) VIOLATIONS.--THE FOLLOWING SHALL BE VIOLATIONS OF THIS
SECTION:
(1) THE FAILURE TO FILE ANY STATEMENT, AMENDMENT, OR OTHER
MATERIAL REQUIRED TO BE FILED PURSUANT TO SUBSECTION (A) OR (B);
OR
(2) THE EFFECTUATION OR ANY ATTEMPT TO EFFECTUATE AN
ACQUISITION OF CONTROL OF, OR MERGER WITH, A DOMESTIC INSURER
UNLESS THE COMMISSIONER HAS GIVEN HIS APPROVAL THERETO.
(H) JURISDICTION; CONSENT TO SERVICE OF PROCESS.--THE SUPERIOR COURT
OF THE DISTRICT OF COLUMBIA IS HEREBY VESTED WITH JURISDICTION OVER
EVERY PERSON NOT RESIDENT, DOMICILED, OR AUTHORIZED TO DO BUSINESS IN
THE DISTRICT WHO FILES A STATEMENT WITH THE COMMISSIONER UNDER THIS
SECTION, AND OVER ALL ACTIONS INVOLVING SUCH PERSON ARISING OUT OF
VIOLATIONS OF THIS SECTION, AND EACH SUCH PERSON SHALL BE DEEMED TO HAVE
PERFORMED ACTS EQUIVALENT TO AND CONSTITUTING AN APPOINTMENT BY SUCH A
PERSON OF THE COMMISSIONER TO BE HIS TRUE AND LAWFUL ATTORNEY UPON WHOM
MAY BE SERVED ALL LAWFUL PROCESS IN ANY ACTION, SUIT, OR PROCEEDING
ARISING OUT OF VIOLATIONS OF HTIS SECTION. COPIES OF ALL SUCH LAWFUL
PROCESS SHALL BE SERVED ON THE COMMISSIONER AND TRANSMITTED BY
REGISTERED OR CERTIFIED MAIL BY THE COMMISSIONER TO SUCH PERSON AT HIS
LAST KNOWN ADDRESS.
REGISTRATION OF INSURERS
SEC. 5. //D.C. CODE 35 - 1904.// (A) REGISTRATION.--EVERY INSURER
WHICH IS AUTHORIZED TO DO BUSINESS IN THE DISTRICT AND WHICH IS AMEMBER
OF AN INSURANCE HOLDING COMPANY SYSTEM SHALL REGISTER WITH THE
COMMISSIONER, EXCEPT A FOREIGN INSURER SUBJECT TO DISCLSURE REQUIREMENTS
AND STANDARDS ADOPTED BY STATUTE OR REGULATION IN THE JURISDICTION OF
ITS DOMICILE WHICH ARE SUBSTANTIALLY SIMILAR TO THOSE CONTAINED IN THIS
ACT. ANY INSURER WHICH IS SUBJECT TO REGISTRATION UNDER THIS SECTION
SHALL REGISTER WITHIN SIXTY DAYS AFTER THE EFFECTIVE DATE OF THIS ACT OR
FIFTEEN DAYS AFTER IT BECOMES SUBJECT TO REGISTRATION, WHICHEVER IS
LATER, UNLESS THE COMMISSIONER FOR GOOD CAUSE SHOWN EXTENDS THE TIME FOR
REGISTRATION, AND THEN WITHIN SUCH EXTENDED TIME. THE COMMISSIONER MAY
REQUIRE ANY AUTHORIZED INSURER WHICH IS A MEMBER OF A HOLDING COMPANY
SYSTEM WHICH IS NOT SUBJECT TO REGISTRATION UNDER THIS SECTION TO
FURNISH A COPY OF THE REGISTRATION STATEMENT OR OTHER INFORMATION FILED
BY SUCH INSURANCE COMPANY WITH THE INSURANCE REGULATIORY AUTHORITY OF
ITS DOMICILIARY JURISDICTION.
(B) INFORMATION AND FORM REQUIRED.--EVERY INSURER SUBJECT TO
REGISTRATION SHALL FILE A RGISTRATION STATEMENT ON A FORM PROVIDED BY
THE COMMISSIONER, WHICH SHALL CONTAIN CURRENT INFORMATION ABOUT--
(1) THE CAPITAL STRUCTURE, GENERAL FINANCIAL CONDITION,
OWNERSHIP, AND MANAGEMENT OF THE INSURER AND NAY PERSON
CONTROLLING THE INSURER;
(2) THE IDENTITY OF EVERY MEMBER OF THE INSURANCE HOLDING
COMPANY SYSTEM;
(3) THE FOLLOWING AGREEMENTS IN FORCE, RELATIONSHOPS
SUBSISTING, AND TRANSACTIONS CURRENTLY OUTSTANDING BETWEEN SUCH
INSURER AND ITS AFFILIATES;
(A) LOANS, OTHER INVESTMENTS, OR PURCHASES, SALES OF EXCHANGES
OR SECURITIES OF THE AFFILIATES BY THE INSURER OF THE INSURER BY
ITS AFFILIATES;
(B) PURCHASES, SALES, OR EXCHANGES OF ASSETS;
(C) TRANSACTIONS NOT IN THE ORDINARY COURSE OF BUSINESS;
(D) GUARANTEES OR UNDERTAKINGS FOR THE BENEFIT OF AN AFFILIATE
WHICH RESULT IN AN ACTUAL CONTINGENT EXPOSURE OF THE INSURER'S
ASSETS TO LIABILITY, OTHER THAN INSURANCE CONTRACTS ENTERED INTO
IN THE ORDINARY COURSE OF THE INSURER'S BUSINESS;
(E) ALL MANAGEMENT AND SERVICE CONTRACTS AND ALL COST-SHARING
ARRANGEMENTS, OTHER THAN COST ALLOCATION ARRANGEMENTS BASED UPON
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES; AND
(F) REINSURANCE AGREEMENTS COVERING ALL OR SUBSTANTIALLY ALL OF
ONE OR MORE LINES OF INSURANCE OF THE CEDING COMPANY.
(4) OTHER MATTERS CONCERING TRANSACTIONS BETWEEN REGISTERED
INSURERS AND AFFILIATES AS MAY BE INCLUDED FROM TIME TO TIME IN
ANY REGISTRATION FORMS ADOPTED OR APPROVED BY THE COMMISSIONER.
(C) MATERIALITY.--NO INFORMATION NEED BE DISCLOSED ON THE
REGISTRATION STATEMENT FILED PURSUANT TO SUBSECTION (B) IF SUCH
INFORMATION IS NOT MATERIAL FOR THE PURPOSES OF THIS SECTION. UNLESS
THE COMMISSIONER BY RULE, REGULATION, OR ORDER PROVIDES OTHERWISE,
SALES, PURCHASES, EXCHANGES, LOANS, OR EXTENSIONS OF CREDIT, OR
INVESTMENTS, INVOLVING ONE-HALF OF 1 PER CENTUM OR LESS OF AN INSURER'S
ADMITTED ASSEST AS OF THE THIRTY-FIRST DAY OF DECEMBER NEXT PRECEDING
SHALL NOT BE DEEMED MATERIAL FOR PURPOSES OF THIS SECTION.
(D) AMENDMENTS TO REGISTRATION STATEMENTS.--EACH REGISTERED INSURES
SHALL KEEP CURRENT THE INFORMATION REQUIRED TO BE DISCLOSED IN ITS
REGISTRATION STATEMENT BY REPORTING ALL MATERIAL CHANGES OR ADDITIONS ON
AMENDMENT FORMS PROVIDED BY THE COMMISSIONER WITHIN FIFTEEN DAYS AFTER
THE END OF THE MONTH IN WHICH IT LEARNS OF EACH SUCH CHANGE OR ADDITION:
PROVIDED, THAT SUBJECT TO SUBSECTION (C) OF SECTION 6, EACH REGISTERED
INSURER SHALL SO REPORT ALL DIVIDENDS AND OTHER DISTRIBUTIONS TO
SHAREHOLDERS WITHIN TOW BUSINESS DAYS FOLLWOING THE DECLARATION THEREOF.
(E) TERMINATION OF REGISTRATION.--THE COMMISSIONER SHALL TERMINATE
THE REGISTRATION OF ANY INSURER WHICH DEMONSTRATES THAT IT NO LONGER IS
A MEMBER OF AN INSURANCE HOLDING COMPANY SYSTEM.
(F) CONSOLIDATED FILING.--THE COMMISSIONER MAY REQUIRE OR ALLOW TWO
OR MORE AFFILIATED INSURERS SUBJECT TO REGISTRATION HEREUNDER TO FILE A
CONSOLIDATED REGISTRATION STATEMENT OR CONSOLIDATED REPORTS AMENDING
THEIR CONSOLIDATED REGISTRATION STATEMENT OR THEIR INDIVIDUAL
REGISTRATION STATEMENTS.
(G) ALTERNATIVE REGISTRATION.--THE COMMISSIONER MAY ALLOW AN INSURER
WHICH IS AUTHORIZED TO DO BUSINESS IN THE DISTRICT AND WHICH IS PART OF
AN INSURANCE HOLDING COMPANY SYSTEM TO REGISTER ON BEHALF OF ANY
AFFILIATED INSURER WHICH IS REQUIRED TO REGISTER UNDER SUBSECTION (A)
AND TO FILE ALL INFORMATION AND MATERIAL REQUIRED TO BE FILED UNDER THIS
SECTION.
(H) EXEMPTIONS.--THE PROVISIONS OF THIS ECTION SHALL NOT APPLY TO ANY
INSURER, INFORMATION, OR TRANSACTION IF AND TO THE EXTENT THAT THE
COMMISSIONER BY RULE, REGULATION, OR ORDER SHALL EXEMPT THE SAME FROM
THE PROVISIONS OF THIS SECTION.
(I) DISCLAIMER.--THE PRESUMPTION OF CONTROL AS DEFINED BY SECTION 2(
C), MAY BE REBUTTED BY A SHOWING MADE IN THE MANNER HEREIN PROVIDED THAT
CONTROL DOES NOT EXIST IN FACT. THE COMMISSIONER MAY DETERMINE, AFTER
FURNISHING ALL PERSONS IN INTEREST NOTICE AND AN OPPORTUNITY TO BE HEARD
AND MAKING SPECIFIC FINDINGS OF FACT TO SUPPORT SUCH DETERMINATION, THAT
CONTROL EXISTS IN FACT, NOTWITHSTANDING THE ABSENCE OF A PRESUMPTION TO
THAT EFFECT. ANY PERSON MAY FILE WITH THE COMMISSIONER A DISCLAIMER OF
AFFILIATION WITH ANY AUTHORIZED INSURER OR SUCH A DISCLAIMER MAY BE
FILED BY SUCH INSURER OR ANY MEMBER OF AN INSURANCE HOLDING COMPANY
SYSTEM. THE DISCLAIMER SHALL FULLY DISCLOSE ALL MATERIAL RELATIONSHIPS
AND BASIS FOR DISCLAIMING SUCH AFFILIATION. AFTER A DISCLAIMER HAS BEEN
FILED, THE INSURER SHALL BE RELIEVED OF ANY DUTY TO REGISTER OR REPORT
UNDER THIS SECTION WHICH MAY ARISE OUT OF THE INSURER'S RELATIONSHIP
WITH SUCH PERSON UNLESS AND UNTIL THE COMMISSIONER DISALLOWS THE
DISCLAIMER. THE COMMISSIONER SHALL DISALLOW SUCH A DISCLAIMER ONLY
AFTER FURINSHING ALL PARTIES IN INTEREST WITH NOTICE AND OPPORTUNITY TO
BE HEARD AND AFTER MAKING SPECIFIC FINDINGS OF FACT TO SUPPORT SUCH
DISALLOWANCE.
(J) VIOLATIONS.--THE FAILURE TO FILE A REGISTRATION STATEMENT OR ANY
AMENDMENT THERETO REQUIRED BY THIS SECTION WITHIN THE TIME SPECIFIED FOR
SUCH FILING SHALL BE A VIOLATION OF THIS SECTION.
STANDARDS
SEC. 6. //D.C. CODE 35 - 1905.// (A) TRANSACTIONS WITH
AFFILIATES.--MATERIAL TRANSACTIONS BE REGISTERED INSURERS WITH THEIR
AFFILIATES SHALL BE SUBJECT TO THE FOLLOWING STANDARDS:
(1) THE TERMS SHALL BE FAIR AND REASONABLE;
(2) THE BOOKS, ACCOUNTS, AND REOCRDS OF EACH PARTY SHALL BE SO
MAINTAINED AS TO CLEARLY AND ACCURATELY DICLOSE THE PRECISE NATURE
AND DETAILS OF THE TRANSACTIONS; AND
(3) THE INSURER'S SURPLUS AS REGARDS POLICYHOLDERS FOLLWOING
ANY DIVIDENDS OR DISTRIBUTIONS TO SHAREHOLDER AFFILIATES SHALL BE
REASONABLE IN RELATION TO THE INSURER'S OUTSTANDING LIABILITIES
AND ADEQUATE TO ITS FINANCIAL NEEDS.
(B) ADEQUACY OF SURPLUS.--FOR THE PURPOSES OF THIS SECTION IN
DETERMINING WHETHER AN INSURER'S SURPLUS AS REGARDS POLICYHOLDERS IS
REASONABLE IN RELATION TO THE INSURER'S OUTSTANDING LIABILITIES AND
ADEQUATE TO ITS FINANCIAL NEEDS, THE FOLLOWING FACTORS, AMONG OTHERS,
SHALL BE CONSIDERED:
(1) THE SIZE OF THE INSURER AS MEASURED BY ITS ASSETS, CAPITAL
AND SURPLUS, RESERVES, PREMIUM WRITINGS, INSURANCE IN FORCE, AND
OTHER APPROPRIATE CRITERIA;
(2) THE EXTENT TO WHICH THE INSURER'S BUSINESS IS DIVERSIFIED
AMONG THE SEVERAL LINES OF INSURANCE;
(3) THE NUMBER AND SIZE OF RISKS INSURED IN EACH LINE OF
BUSINESS;
(4) THE EXTENT OF THE GEOGRAPHICAL DISPERSION OF THE INSURER'S
INSURED RISKS;
(5) THE NATURE AND EXTENT OF THE INSURER'S REINSURANCE PROGRAM;
(6) THE QUALITY, DIVERSIFICATION, AND LIQUIDITY OF THE
INSURER'S INVESTMENT PORFOLIO;
(7) THE RECENT PAST AND PROJECTED FUTURE TREND IN THE SIZE OF
THE INSURER'S SURPLUS AS REGARDS POLICYHOLDERS;
(8) THE SURPLUS AS REGARDS POLICYHOLDERS MAINTAINED BY OTHER
COMPARABLE INSURERS;
(9) THE ADEQUACY OF THE INSURER'S RESERVES; AND
(10) THE QUALITY AND LIQUDITY OF INVESTMENTS IN SUBSIDIARIES
MADE PURSUANT TO SECTION 3. THE COMMISSIONER MAY TREAT ANY SUCH
INVESTMENT AS A DISALLOWED ASSET FOR PURPOSES OF DETERMINING THE
ADEQUACY OF SURPLUS AS REGARDS POLICYHOLDERS WHENEVER IN HIS
JUDGMENT SUCH INVESTMENT SO WARRANTS.
(C) DIVIDENDS AND OTHER DISTRIBUTIONS.--(1) NO INSURER SUBJECT TO
REGISTRATION UNDER SECTION 5 SHALL PAY ANY EXTRAORDINARY DIVIDEND OR
MAKE ANY OTHER EXTRAORDINARY DISTRIBUTION TO ITS SHAREHOLDERS UNTIL (A)
THIRTY DAYS AFTER THE CMMISSIONER HAS RECEIVED NOTICE OF THE DECLARATION
THEREOF AND HAS NOT WITHIN SUCH PERIOD DISAPPROVED SUCH PAYMENT, OR (B)
THE COMMISSIONER SHALL HAVE APPROVED SUCH PAYMENT WITHIN SUCH THIRTY-DAY
PERIOD.
(2) FOR PURPOSES OF THIS SECTION, AN EXTRAORDINARY DIVIDEND OR
DISTRIBUTION INCLUDES ANY DIVIDEND OR DISTRIBUTION OF CASH OR OTHER
PROPERTY, WHOSE FAIR MARKET VALUE TOGETHER WITH THAT OF OTHER DIVIDENDS
OR DISTRIBUTIONS MADE WITHIN THE PRECEEDING TWELVE MONTHS EXCEEDS THE
GREATER OF (A) 10 PER CENTUM OF SUCH INSURER'S SURPLUS AS REGARDS
POLICYHOLDERS AS OF THE THIRTY-FIRST DAY OF DECEMBER NEXT PRECEEDING OR
(B) THE NET GAIN FROM OPERATIONS OF SUCH INSURER, IF SUCH INSURER IS A
LIFE INSURER, OR THE NET INVESTMENT INCOME, IF SUCH INSURER IS NOT A
LIFE INSURER, FOR THE TWELVE-MONTH PERIOD ENDING THE THIRTY-FIRST DAY OF
DECEMBER NEXT PRECEDING, BUT SHALL NOT INCLUDE PRO RATA DISTRIBUTIONS OF
ANY CLASS OF THE INSURER'S OWN SECURITIES.
(3) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, AN INSURER MAY
DECLARE AN EXTRAORDINARY DIVIDEND OR DISTRIBUTION WHICH IS CONDITIONAL
UPON THE COMMISSIONER'S APPROVAL THEREOF, AND SUCH A DECLARATION SHALL
CONFER NO RIGHTS UPON SHAREHOLDERS UNTIL (A) THE COMMISSIONER HAS
APPROVED THE PAYMENT OF SUCH DIVIDEND OR DISTRIBUTION OR (B) THE
COMMISSIONER HAS NOT DISAPPROVED SUCH PAYMENT WITHIN THE THIRTY-DAY
PERIOD REFERRED TO ABOVE.
EXAMINATION
SEC. 7. //D.C. CODE 35 - 1906.// (A) POWER OF COMMISSIONER.--
SUBJECT TO THE LIMITATION CONTAINED IN THIS SECTION AND IN ADDITION TO
THE POWERS WHICH THE COMMISSIONER HAS UNDER THE INSURANCE LAWS OF THE
DISTRICT RELATING TO THE EXAMINATION OF INSURERS, THE COMMISSIONER SHALL
ALSO HAVE THE POWER TO ORDER ANY INSURER REGISTERED UNDER SECTION 5 TO
PRODUCE SUCH RECORDS, BOOKS, PAPERS, OR OTHER INFORMATION IN THE
POSSESSION OF THE INSURER OR ITS AFFILIATES AS SHALL BE NECESSARY TO
ASCERTAIN THE FINANCIAL CONDITION OR LEGALITY OF CONDUCT OF SUCH
INSURER. IN THE EVENT SUCH INSURER FAILS TO COMPLY WITH SUCH ORDER, THE
COMMISSIONER SHALL HAVE THE POWER TO EXAMINE SUCH AFFILIATES TO OBTAIN
SUCH INFORMATION.
(B) PURPOSE AND LIMITATION OF EXAMINATION.--THE COMMISSIONER SHALL
EXERCISE HIS POWER UNDER SUBSECTION (A) ONLY IF THE EXAMINATION OF THE
INSURER UNDER AND AS IS PROVIDED FOR BY THE INSURANCE LAWS OF THE
DISTRICT IS INADEQUATE OR THE INTERESTS OF THE POLICYHOLDERS OF SUCH
INSURER MAY BE ADVERSELY AFFECTED.
(C) USE OF CONSULTANTS.--THE COMMISSIONER MAY RETAIN AT THE
REGISTERED INSURER'S EXPENSE SUCH ATTORNEYS, ACTUARIES, ACCOUNTANTS, AND
OTHER EXPERTS NOT OTHERWISE A PART OF THE COMMISSIONER'S STAFF AS SHALL
BE REASONABLY NECESSARY TO ASSIST IN THE CONDUCT OF THE EXAMINATION
UNDER SUBSECTION (A). ANY PERSONS SO RETAINED SHALL BE UNDER THE
DIRECTION AND CONTROL OF THE COMMISSIONER AND SHALL ACT IN A PURELY
ADVISORY CAPACITY.
(D) EXPENSES.--EACH REGISTERED INSURER PRODUCING FOR EXAMINATION
RECORDS, BOOKS, AND PAPERS PURSUANT TO SUBSECTION (A) SHALL BE LIABLE
FOR AND SHALL PAY THE EXPENSE OF SUCH EXAMINATION IN ACCORDANCE WITH THE
PROVISIONS OF SECTION 19, CHAPTER II, OF THE LIFE INSURANCE ACT (D. C.
CODE, SEC. 35 - 428) //48 STAT. 1135.// AND SECTION 10, CHAPTER II, OF
THE FIRE AND CASUALTY ACT (D.C. CODE, SEC. 35 - 1313), //54 STAT.
1069.// PERTAINING TO EXAMINATION EXPENSE.
SEC. 8. //D.C. CODE 35 - 1907.// CONFIDENTIAL TREATMENT.--ALL
INFORMATION, DOCUMENTS, AND COPIES THEREOF OBTAINED BY OR DISCLOSED TO
THE COMMISSIONER OR ANY OTHER PERSON IN THE COURSE OF AN EXAMINATION OR
INVESTIGATION MADE PURSUANT TO SECTION 7 AND ALL INFORMATION REPORTED
PURSUANT TO SECTION 5, SHALL BE GIVEN CONFIDENTIAL TREATMENT AND SHALL
NOT BE SUBJECT TO SUBPENA AND SHALL NOT BE MADE PUBLIC BY THE
COMMISSIONER OR ANY OTHER PERSON, EXCEPT TO INSURANCE DEPARTMENTS OF
OTHER STATES, WITHOUT THE PRIOR WRITTEN CONSENT OF THE INSURER TO WHICH
IT PERTAINS UNLESS THE COMMISSIONER, AFTER GIVING THE INSURER AND ITS
AFFILIATES WHO WOULD BE AFFECTED THEREBY, NOTICE AND OPPORTUNITY TO BE
HEARD, DETERMINES THAT THE INTERESTS OF POLICYHOLDERS, SHAREHOLDERS, OR
THE PUBLIC WILL SERVED BY THE PUBLICATION THEREOF, IN WHICH EVENT HE MAY
PUBLISH ALL OR ANY PART THEREOF IN SUCH MANNER AS HE MAY DEEM
APPROPRIATE.
SEC. 9. //D.C. CODE 35 - 1908.// RULES AND REGULATIONS.--THE
COMMISSIONER MAY, UPON NOTICE AND OPPORTUNITY OF ALL INTERESTED PERSONS
TO BE HEARD, ISSUE SUCH RULES, REGULATIONS, AND ORDERS AS SHALL BE
NECESSARY TO CARRY OUT THE PROVISIONS OF THIS ACT.
INJUNCTIONS; PROHIBITIONS AGAINST VOTING SECURITIES;
SEQUESTRATION OF VOTING SECURITIES
SEC. 10. //D.C. CODE 35 - 1909.// (A) INJUNCTIONS.--WHENEVER IT
APPEARS TO THE COMMISSIONER THAT ANY INSURER OR ANY DIRECTOR, OFFICER,
EMPLOYEE OR AGENT THEREOF HAS COMMITTED OR IS ABOUT TO COMMIT A
VIOLATION OF THIS ACT OR OF ANY RULE, REGULATION, OR ORDER ISSUED BY THE
COMMINNIONER HEREUNDER, THE COMMISSIONER MAY APPLY TO THE SUPERIOR COURT
OF THE DISTRICT OF COLUMBIA FOR AN ORDER ENJOINING INSURER OF SUCH
DIRECTOR, OFFICER, EMPLOYEE, OR AGENT THEREOF FROM VIOLATING OR
CONTINUING TO VIOLATE THIS ACT OR ANY SUCH RULE, REGULATION, OR ORDER,
AND FOR SUCH OTHER EQUITABLE RELIEF AS THE FAILURE OF THE CASE AND THE
INTERESTS OF THE INSURER'S POLICYHOLDERS, OR THE PUBLIC MAY REQUIRE.
(B) VOTING OF SECURITIES; WHEN PROHIBITED.--NO SECURITY WHICH IS THE
SUBJECT OF ANY AGREEMENT OR ARRANGEMENT REGARDING ACQUISITION, OR WHICH
IS ACQUIRED OR TO BE ACQUIRED, IN CONTRAVENTION OF THE PROVISIONS OF
THIS ACT OR OF ANY RULE, REGULATION, OR ORDER ISSUED BY THE COMMISSIONER
HEREUNDER MAY BE VOTED AT A NY SHAREHOLDERS' MEETING, OR MAY BE COUNTED
FOR QUORUM PURPOSES, AND ANY ACTION OF SHAREHOLDERS REQUIRING THE
AFFIRMATIVE VOTE OF A PERCENTAGE OF SHARES MAY BE TAKEN AS THOUGH SUCH
SECURITIES WERE NOT ISSUED AND OUTSTANDING; BUT NO ACTION TAKEN AT ANY
SUCH MEETING SHALL BE INVALIDATED BY THE VOTING OF SUCH SECURITIES,
UNLESS THE ACTION WOULD MATERIALLY AFFECT CONTROL OF THE INSURER OR
UNLESS THE SUPERIOR COURT OF THE DISTRICT OF COLUMBIA HAS SO ORDERED.
IF AN INSURER OR THE COMMISSIONER HAS REASON TO BELIEVE THAT ANY
SECURITY OF THE INSURER HAS BEEN OR IS ABOUT TO BE ACQUIRED IN
CONTRAVENTION OF THE PROVISIONS OF THIS ACT OR OF ANY RULE, REGULATION,
OR ORDER ISSUED BY THE COMMISSIONER HEREUNDER THE INSURER OR THE
COMMISSIONER MAY APPLY TO THE SUPERIOR COURT OF THE DISTRICT OF COLUMBIA
TO ENJOIN ANY OFFER, REQUEST, INVITATION, AGREEMENT, OR ACQUISITION MADE
IN CONTRAVENTION OF SECTION 4 OF ANY RULE, REGULATION, OR ORDER ISSUED
BY THE COMMISSIONER THEREUNDER TO ENJOIN THE VOTING OF ANY SECURITY SO
ACQUIRED, TO VOID ANY VOTE OF SUCH SECURITY ALREADY CAST AT ANY MEETING
OF SHAREHOLDERS, AND FOR SUCH OTHER EQUITABLE RELIEF AS THE NATURE OF
THE CASE AND THE INTERESTS OF THE INSURER'S POLICYHOLDERS, CREDITORS,
SHAREHOLDERS, OR THE PUBLIC MAY REQUIRE.
(C) SEQUESTRATION OF VOTING SECURITIES.--IN ANY CASE WHERE A PERSON
HAS OR IS PROPOSING TO ACQUIRE ANY VOTING SECURITIES IN VIOLATION OF
THIS ACT OR ANY RULE, REGULATION, OR ORDER ISSUED BY THE COMMISSIONER
HEREUNDER, THE SUPERIOR COURT OF THE DISTRICT OF COLUMBIA MAY, ON SUCH
NOTICE AS THE COURT DEEMS APPROPRIATE, UPON THE APPLICATION OF THE
INSURER OR THE COMMISSIONER SEIZE OR SEQUESTER ANY VOTING SECURITIES OF
THE INSURER OWNED DIRECTLY OR INDIRECTLY BY SUCH PERSON, AND ISSUE SUCH
ORDERS WITH RESPECT THERETO AS MAY BE APPROPRIATE TO EFFECTUATE THE
PROVISIONS OF THIS ACT. NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW,
FOR THE PURPOSES OF THIS ACT THE SITUS OF THE OWNERSHIP OF THE
SECURITIES OF DOMESTIC INSURERS SHALL BE DEEMED TO BE IN THE DISTRICT.
SEC. 11. //D.C. CODE 35 - 1910.// CRIMINAL PROCEEDINGS.--WHENEVER IT
APPEARS TO THE COMMISSIONER THAT ANY INSURER OR ANY DIRECTOR, OFFICER,
EMPLOYEE, OR AGENT THEREOF HAS COMMITTED A WILLFUL VIOLATION OF THIS
ACT, THE COMMISSIONER MAY CAUSE CRIMINAL PROCEEDINGS TO BE INSTITUTED IN
THE DISTRICT AGAINST SUCH INSURER OR THE RESPONSIBLE DIRCTOR, OFFICER,
EMPLOYEE, OR AGENT THEREOF. ANY INSURER WHICH WILLFULLY VIOLATES THIS
ACT MAY BE FINED NOT MORE THAN $1,000. ANY INDIVIDUAL WHO WILLFULLY
VIOLATES THIS ACT MAY BE FINED NOT MORE THAN $1,000 OR, IF SUCH WILLFUL
VIOLATION INVOLVES THE DELIBERATE PERPETRATION OF A FRAUD UPON THE
COMMISSIONER, IMPRISIONED NOT MORE THAN TWO YEARS OR BOTH.
SEC. 12. //DC.C. CODE 35 - 1911.// RECEIVERSHIP.--WHENEVER IT
APPEARS TO THE COMMISSIONER THAT ANY PERSON HAS COMMITTED A VIOLATION OF
THIS ACT WHICH SO IMPAIRS THE FINANCIAL CONDITION OF A DOMESTIC INSURER
AS TO THREATEN INSOLVENCY OR MAKE THE FUTHER TRANSACTION OF BUSINESS BY
IT HAZARDOUS TO ITS POLICYHOLDERS, CREDITORS, SHAREHOLDERS, OR THE
PUBLIC, THE COMMISSIONER MAY PROCEED AS PROVIDED UNDER THE INSURANCE
LAWS OF THE DISTRICT TO TAKE POSSESSION OF THE PROPERTY OF SUCH DOMESTIC
INSURER AND TO CONDUCT THE BUSINESS THEREOF.
SEC. 13. //D.C. CODE 35 - 1912.// REVOCATION, SUSPENSION, OR
NON-RENEWAL OF INSURER'S LICENSE.--WHENEVER IT APPEARS TO THE
COMMISSIONER THAT ANY PERSON HAS COMMITTED A VIOLATION OF THIS ACT WHICH
MAKES THE CONTINUED OPERATION OF AN INSURER CONTRARY TO THE INTERESTS OF
POLICYHOLDERS OR THE PUBLIC, THE COMMISSIONER MAY, AFTER GIVING NOTICE
AND AN OPPORTUNITY TO BE HEARD, SUSPEND, REVOKE, OR REFUSE TO RENEW SUCH
INSURER'S LICENSE OR AUTHORITY TO DO BUSINESS IN THE DISTRICT FOR SUCH
PERIOD AS HE FINDS IS REQUIRED FOR THE PROTECTION OF POLICYHOLDERS OR
THE PUBLIC. ANY SUCH DETERMINATION SHALL BE ACCOMPANIED BY SPECIFIC
FINDINGS OF FACT AND CONCLUSIONS OF LAW.
SEC. 14. D.C. CODE 35 - 1913.// JUDICIAL REVIEW; MANDAMUS.--(A) ANY
PERSON AGGRIEVED BY ANY ACT, DETERMINATION, RULE, REGULATION, OR ORDER
OR ANY OTHER ACTION OF THE COMMISSIONER PURSUANT TO THIS ACT MAY APPEAL
THEREFROM TO THE DISTRICT OF COLUMBIA COURT OF APPEALS, IN ACCORDANCE
WITH THE DISTRICT OF COLUMBIA ADMINISTRATIVE PROCEDURE ACT. //82 STAT.
1203, D.C. CODE 1 - 1501 NOTE.//
(B) ANY PERSON AGGRIEVED BY ANY FAILURE OF THE COMMISSIONER TO ACT OR
MAKE A DETERMINATION REQUIRED BY THIS ACT MAY PETITION THE SUPERIOR
COURT OF THE DISTRICT OF COLUMBIA FOR A WRIT IN THE NATURE OF A MANDAMUS
OF A PEREMPTORY MANDAMUS DIRECTING THE COMMISSIONER TO ACT OR MAKE SUCH
DETERMINATION FORTHWITH.
SEC. 15. //D.C. CODE 35 - 1914.// CONFLICT WITH OTHER LAWS.--ALL
LAWS AND PARTS OF LAWS OF THE DISTRICT INCONSISTENT WITH THIS ACT ARE
HEREBY SUPERSEDED WITH RESPECT TO MATTERS COVERED BY THIS ACT.
SEC. 16. //D.C. CODE 35 - 1915.// DEPARABILITY OF PROVISIONS.--IF
ANY PROVISION OF THIS ACT OR THE APPLICATION THEREOF ANY PERSON OR
CIRCUMSTANCE IS HELD INVALID, THE INVALIDITY SHALL NOT AFFECT OTHER
PROVISIONS OR APPLICATIONS OF THIS ACT WHICH CAN BE GIVEN WITHOUT THE
INVALID PROVISION OR APPLICATION, AND FOR THIS PURPOSE THE PROVISIONS OF
THIS ACT ARE SEPARABLE.
SEC. 17. //D.C. CODE 35 - 1901 NOTE.// EFFECTIVE DATE.--THIS ACT
SHALL TAKE EFFECT THIRY DAYS AFTER THE DATE OF ITS ENACTMENT.
LEGISLATIVE HISTORY:
HOUSE REPORT NO. 93 - 653 (COMM. ON THE DISTRICT OF COLUMBIA).
SENATE REPORT NO. 93 - 1075 (COMM. ON THE DISTRICT OF COLUMBIA).
CONGRESSIONAL RECORD:
VOL. 119 (1973): NOV. 26, CONSIDERED AND PASSED HOUSE.
VOL. 120 (1974): AUG. 8, CONSIDERED AND PASSED SENATE.
PUBLIC LAW 93-387, 88 STAT. 750, COUNCIL ON WAGE AND PRICE STABILITY
ACT.
BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE
UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT THIS ACT MAY BE
CITED AS THE "COUNCIL ON WAGE AND PRICE STABILITY ACT". //1 USC 1904
NOTE.//
SEC. 2. (A) THE PRESIDENT IS AUTHORIZED TO ESTABLISH, WITHIN THE
EXECUTIVE OFFICE OF THE PRESIDENT, A COUNCIL ON WAGE AND PRICE
STABLILITY (HEREINAFTER REFERRED TO AS THE "COUNCIL"). //12 USC 1904
NOTE.//
(B) THE COUNCIL SHALL CONSIST OF EIGHT MEMBERS APPOINTED BY THE
PRESIDENT AND FOUR ADVISER-MEMBERS ALSO APPOINTED BY THE PRESIDENT. THE
CHAIRMAN OF THE COUNCIL SHALL BE DESIGNATED BY THE PRESIDENT.
(C) THERE SHALL BE A DIRECTOR OF THE COUNCIL WHO SHALL BE APPOINTED
BY THE PRESIDENT. THE DIRECTOR SHALL BE COMPENSATED AT THE RATE
PRESCRIBED FOR LEVEL IV OF THE EXECUTIVE SCHEDULE BY SECTION 5313 OF
TITLE 5, UNITED STATES. CODE. //83 STAT. 863, 5 USC 5315 NOTE.// THE
DIRECTOR OF THE COUNCIL SHALL PERFORM SUCH FUNCTIONS AS THE PRESIDENT OR
THE CHAIRMAN OF THE COUNCIL MAY PRESCRIBE. THE DEPUTY DIRECTOR SHALL
PERFORM SUCH FUNCTIONS AS THE CHAIRMAN OR THE DIRECTOR OF THE COUNCIL
MAY PRESCRIBE.
(D) THE DIRECTOR OF THE COUNCIL MAY EMPLOY AND FIX THE COMPENSATION
OF SUCH OFFICERS AND EMPLOYEES, INCLUDING ATTORNEYS, AS ARE NECESSARY TO
PERFORM THE FUNCTIONS OF THE COUNCIL AT RATES NOT TO EXCEED THE HIGHEST
RATE FOR GRADE 15 OF THE GENERAL SCHEDULE UNDER SECTION 5332 OF TITLE 5,
UNITED STATES CODE, //5 USC 533I NOTE.// EXCEPT THAT THE DIRECTOR, WITH
THE APPROVAL OF THE CHAIRMAN MAY, WITHOUT REGARD TO THE PROVISIONS OF
TITLE 5, UNITED STATES CODE, //5 USC 101 ET SEQ.// RELATING TO
APPOINTMENTS IN THE COMPETITIVE SERVICE, APPOINT AND FIX THE
COMPENSATION OF NOT TO EXCEED FIVE POSITIONS AT THE RATES PROVIDED FOR
GRADES 16, 17, AND 18 OF SUCH GENERAL SCHEDULE, TO CARRY OUT THE
FUNCTIONS OF THE COUNCIL.
(E) THE DIRECTOR OF THE COUNCIL MAY EMPLOY EXPERTS, EXPERT WITNESSES,
AND CONSULTANTS IN ACCORDANCE WITH THE PROVISIONS OF SECTION 3109 OF
TITLE 5, UNITED STATES CODE, //80 STAT. 416.// AND COMPENSATE THEM AT
RATES NOT IN EXCESS OF THE MAXIMUM DAILY RATE PRESCRIBED FOR GRADE 18 OF
THE GENERAL SCHEDULE UNDER SECTION 5332 OF TITLE 5, UNITED STATES CODE.
(F) THE DIRECTOR OF THE COUNCIL MAY, WITH THEIR CONSENT, UTILIZE THE
SERVICES, PERSONNEL, EQUIPMENT, AND FACILITIES OF FEDERAL, STATE,
REGIONAL, AND LOCAL PUBLIC AGENCIES AND INSTRUMENTALITIES, WITH OR
WITHOUT REIMBURSEMENT THEREFOR, AND MAY TRANSFER FUNDS MADE AVAILABLE
PURSUANT TO THIS ACT TO FEDERAL, STATE, REGIONAL, AND LOCAL PUBLIC
AGENCIES AND INSTRUMENTALITIES AS REIMBURSEMENT FOR UTILIZATION OF SUCH
SERVICES, PERSONNEL, EQUIPMENT, AND FACILITIES.
SEC. 3. (A) THE COUNCIL SHALL--,
(1) REVIEW AND ANALYZE INDUSTRIAL CAPACITY, DEMAND, SUPPLY, AND
THE EFFECT OF ECONOMIC CONCENTRATION AND ANTICOMPETITIVE
PRACTICES, AND SUPPLY IN VARIOUS SECTORS OF THE ECONOMY, WORKING
WITH THE INDUSTRIAL GROUPS CONCERNED AND APPROPRIATE GOVERNMENTAL
AGENCIES TO ENCOURAGE PRICE RESTRAINT; //12 USC 1904 NOTE.//
(2) WORK WITH LABOR AND MANAGEMENT IN THE VARIOUS SECTORS OF
THE ECONOMY HAVING SPECIAL ECONOMIC PROBLEMS, AS WELL AS WITH
APPROPRIATE GOVERNMENT AGENCIES, TO IMPROVE THE STRUCTURE OF
COLLECTIVE BARGAINING AND THE PERFORMANCE OF THOSE SECTORS IN
RESTRAINING PRICES;
(3) IMPROVE WAGE AND PRICE DATA BASES FOR THE VARIOUS SECTORS
OF THE ECONOMY TO IMPROVE COLLECTIVE BARGAINING AND ENCOURAGE
PRICE RESTRAINT;
(4) CONDUCT PUBLIC HEARINGS NECESSARY TO PROVIDE FOR PUBLIC
SCRUTINY OF INFLATIONARY PROBLEMS IN VARIOUS SECTORS OF THE
ECONOMY;
(5) FOCUS ATTENTION ON THE NEED TO INCREASE PRODUCTIVITY IN
BOTH THE PUBLIC AND PRIVATE SECTORS OF THE ECONOMY;
(6) MONITOR THE ECONOMY AS A WHOLE BY ACQUIRING AS APPROPRIATE,
REPORTS ON WAGES, COSTS, PRODUCTIVITY, PRICES, SALES, PROFITS,
IMPORTS, AND EXPORTS; AND
(7) REVIEW AND APPRAISE THE VARIOUS PROGRAMS, POLICIES, AND
ACTIVITIES OF THE DEPARTMENTS AND AGENCIES OF THE UNITED STATES
FOR THE PURPOSE OF DETERMINING THE EXTENT TO WHICH THOSE PROGRAMS
AND ACTIVITIES ARE CONTRIBUTING TO INFLATION.
(B) NOTHING IN THIS ACT, (1) AUTHORIZES THE CONTINUATION, IMPOSITION,
OR REIMPOSITION OF ANY MANDATORY ECONOMIC CONTROLS WITH RESPECT TO
PRICES, RENTS, WAGES, SALARIES, COPORATE DIVIDENDS, OR ANY SIMILAR
TRANSFERS, OR (2) AFFECTS THE AUTHORITY CONFERRED BY THE EMERGENCY
PETROLEUM ALLOCATION ACT OF 1973. //87 STAT. 627, 15 USC 751 NOTE.//
SEC. 4. (A) ANY DEPARTMENT OR AGENCY OF THE UNITED STATES WHICH
CLOOECTS, GENERATES, OR OTHERWISE PREPARES OR MAINTAINS DATA OR
INFORMATION PERTAINING TO THE ECONOMY OR ANY SECTOR OF THE ECONOMY
SHALL, UPON THE REQUEST OF THE CHAIRMAN OF THE COUNCIL, MAKE THAT DATA
OR INFORMATION AVAILABLE TO THE COUNCIL. //12 USC 1904 USC NOTE.//
(B) DISCLOSURE OF INFORMATION OBTAINED BY THE COUNCIL FROM SOURCES
OTHER THAN FEDERAL, STATE, OR LOCAL GOVERNMENT AGENCIES AND DEPARTMENTS
SHALL BE IN ACCORDANCE WITH THE PROVISIONS OF SECTION 552 OF TITLE 5,
UNITED STATES CODE. //81 STAT. 54.//
(C) DISCLISURE BY THE COUNCIL OF INFORMATION OBTAINED FROM A FEDERAL,
STATE, OR LOCAL AGENCY OR DEPARTMENT MUST BE IN ACCORD WITH SECTION 552
OF TITLE 5, UNITED STATES CODE, AND ALL THE APPLICABLE RULES OF PRACTICE
AND PROCEDURE OF THE AGENCY OR DEPARTMENT FROM WHICH THE INFORMATION WAS
OBTAINED.
(D) DISCLOSURE BY A MEMBER OF ANY EMPLOYEE OF THE COUNCIL OF THE
CONFIDENTIAL INFORMATION AS DEFINED IN SECTION 1905 OF TITLE 28, UNITED
STATES CODE, //62 STAT. 791.// SHALL BE A VIOLATION OF THE CRIMINAL CODE
AS STATED THEREIN.
(E) CONSISTENT WITH THE PROVISIONS OF SECTION 7213 OF THE INTERNAL
REVENUE CODE OF 1954, //68A STAT. 855; 74 STAT. 940, 16 USC 7213.//
NOTHING IN THIS ACT SHALL BE CONSTRUED AS PROVIDING FOR OR AUTHORIZING
ANY FEDERAL AGENCY TO DEVULGE OR TO MAKE KNOWN TO THE COUNCIL THE AMOUNT
OR SOURCE OF INCOME, PROFITS, LOSSES, EXPENDITURES, OR ANY PARTICULAR
THEREOF, SET FORTH OR DISCLOSED SOLELY IN ANY INCOME RETURN, OR TO
PERMIT ANY INCOME TAX RETURN FILED PURSUANT TO THE PROVISIONS OF THE
INTERNAL REVENUE CODE OF 1954 //23 USC 101 ET SEQ.// THEREOF, TO BE SEEN
OR EXAMINED BY THE COUNCIL.
SEC. 5. THE COUNCIL SHALL REPORT TO THE PRESIDENT, AND THROUGH HIM
TO THE CONGRESS, FROM TIME TO TIME, CONCERNING ITS ACTIVITIES, FINDINGS
AND RECOMMENDATIONS WITH RESPECT TO THE CONTAINMENT OF INFLATION AND THE
MAINTENANCE OF A VIGOROUS AND PROSPEROUS PEACETIME ECONOMY. // 12 USC
1904 NOTE.//
SEC. 6. THERE IS HEREBY AUTHORIZED TO BE APPROPRIATED NOT TO EXCEED
$1,000,000 FOR THE FISCAL YEAR ENDING JUNE 30, 1975, TO CARRY OUT THE
PURPOSES OF THIS ACT. //12 USC 1904 NOTE.//
SEC. 7. THE AUTHORITY GRANTED BY THIS ACT TERMINATES ON AUGUST 15,
1975. //12 USC 1904 NOTE.//
LEGISLATIVE HISTORY:
SENATE REPORT NO. 93 - 1098 (COMM. ON BANKING, HOUSING AND URBAN
AFFAIRS).
CONGRESSIONAL RECORD, VOL. 120 (1974):
AUG. 19, CONSIDERED AND PASSED SENATE.
AUG. 20, CONSIDERED AND PASSED HOUSE.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, VOL. 10, NO. 35:
AUG. 24, PRESIDENTIAL STATEMENT.
PUBLIC LAW 93-386, 88 STAT 742, SMALL BUSINESS AMENDMENTS OF 1974
BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE
UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT THIS ACT MAY BE
CITED AS THE "SMALL BUSINESS AMENDMENTS OF 1974". //15 USC 631 NOTE.//
SEC. 2. (A) THE SMALL BUSINESS AMENDMENTS ACT IS AMENDED--, //72
STAT. 384; 75 STAT. 167, 15 USC 631.//
(1) BY REDESIGNATING SUBSECTION(B) OF SECTION 2 AS SUBSECTION
(C) AND BY ADDING AFTER SUBSECTION (A) OF THAT SECTION THE
FOLLOWING NEW SUBSECTION:
"(B) THE ASSISTANCE PROGRAMS AUTHORIZED BY SECTIONS 7 (I) AND 7 (J)
OF THIS ACT //POST, 744.// ARE TO BE UTILIZED TO ASSIST IN THE
ESTABLISHMENT, PRESERVATION, AND STRENGTHENING OF SMALL BUSINESS
CONCERNS AND IMPROVE THE MANAGERIAL SKILLS IMPLOYED IN SUCH ENTERPRISES,
WITH SPECIAL ATTENTION TO SMALL BUSINESS CONCERNS (1) LOCATED IN URBAN
OR RURAL AREAS WITH HIGH PROPORTIONS OF UNEMPLOYED OR LOW-INCOME
INDIVIDUALS: OR (2) OWNED BY LOW-INCOME INDIVIDUALS; AND TO MOBILIZE
FOR THESE OBJECTIVES PRIVATE AS WELL AS PUBLIC MANAGERIAL SKILLS AND
RESOURCES.";
(2) BY STRIKING OUT PARAGRAPHS (1) AND (2) OF SECTION 4 (C),
AND INSERTING IN LIEU THEREOF THE FOLLOWING: //80 STAT. 132, 15
USC 633.//
"(C)(1) THERE ARE HEREBY ESTABLISHED IN THE TREASURY THE FOLLOWING
REVOLVING FUNDS: (A) A DISASTER LOAN FUND WHICH SHALL BE AVAILABLE FOR
FINANCING FUNCTIONS PERFORMED UNDER SECTIONS 7(B) (1), 7(B) (2), 7(B)
(4), 7(B) (5), 7(B) (6), 7(B)(7), 7(B)(8), 7(C) (2), AND 7(G) OF THIS
ACT, //15 USC 636.// INCLUDING ADMINISTRATIVE EXPENSES IN CONNECTION
WITH SUCH FUNCTIONS; ADN (B) A BUSINESS LOAN AND INVESTMENT FUND WHICH
SHALL BE AVAILABLE FOR FINANCING FUNCTIONS PERFORMED UNDED SECTIONS 7(
A), 7(B) (3), 7(E), 7(H), 7(I), AND 8(A) OF THIS ACT, AND TITLES III AND
V OF THE SMALL BUSINESS INVESTMENT ACT OF 1958, //15 USC 637, 681,
695.// INCLUDING ADMINISTRATIVE EXPENSES IN CONNECTION WITH SUCH
FUNCTIONS.
"(2) ALL REPAYMENTS OF LOANS AND DEBENTURES, PAYMENTS OF INTEREST AND
OTHER RECEIPTS ARISING OUT OF TRNASACTIONS HERETOFORE OR HEREAFTER
ENTERED INTO BY THE ADMINISTRATION (A) PURSUANT TO SECTIONS 7(B)(1), 7(
B)(2), 7(B)(4), 7(B)(6), 7(B)(7), 7(B)(8), AND 7(C)(2) OF THIS ACT SHALL
BE PAID INTO A DISASTER LOAN FUND; AND (B) PURSUANT TO SECTIONS 7(A),
7(B)(3), 7(E), 7(H), 7(I), AND 8(A) OF THIS ACT, AND TITLES III AND V OF
THE SMALL BUSINESS INVESTMENT ACT OF 1958, SHALL BE PAID INTO THE
BUSINESS LOAN AND INVESTMENT FUND.";
(3) BY STRIKING OUT PARAGRAPH (4) OF SECTION 4(C), AND
INSERTING IN LIEU THEEOF THE FOLLOWING: //80 STAT. 132; 87 STAT.
1023.//
"(4) THE TOTAL AMOUNT OF LOANS, GUARANTEES, AND OTHER OBLIGATIONS OR
COMMITMENTS, HERETOFORE OR HEREAFTER ENTERED INTO BY THE ADMINISTRATION
WHICH ARE OUTSTANDING AT ANY ONE TIME (A) UNDER SECTIONS 7(A), 7(B)(3),
7()), 7(H), 7(I), AND 8(A) OF THIS ACT, SHALL NOT EXCEED $6,000,000,000;
(B) UNDER TITLE III OF THE SMALL BUSINESS INVESTMENT ACT OF 1958, SHALL
NOT EXCEED $725,000,000; (C) UNDER TITLE V OF THE SMALL BUSINESS
INVESTMENT ACT OF 1958, SHALL NOT EXCEED $525,000,000; ( AND (D) UNDER
SECTION 7(I) OF THIS ACT, SHALL NOT EXCEED $450,000,000"; AND
(4) BY ADDING AT THE END OF SECTION 7 THE FOLLOWING THREE NEW
SUBSECTIONS: //86 STAT. 1316; 87 STAT. 1024. 15 USC 636.//
"(I)(1) THE ADMINISTRATION ALSO IN EMPOWERED TO MAKE, PARTICIPATE (ON
AN IMMEDIATE BASIS) IN, OR GUARANTEE LOANS, REPAYABLE IN NOT MORE THAN
FIFTEEN YEARS, TO ANY SMALL BUSINESS CONCERN, OR TO ANY QUALIFIED PERSON
SEEKING TO ESTABLISH SUCH A CONCERN, WHEN IT DETERMINES THAT SUCH LOANS
WILL FURTHER THE POLICIES ESTABLISHED IN SECTION 2(B) OF THIS ACT,
//ANTE, P. 742.// WITH PARTICULAR EMPHASIS ON THE PRESERVATION OR
ESTABLISHMENT OF SMALL BUSINESS CONCERNS LOCATED IN URBAN OR RURAL AREAS
WITH HIGH PROPORTIONS OF UNEMPLOYED OR LOW-INCOME INDIVIDUALS, OR OWNED
BY LOW-INCOME INDIVIDUALS: PROVIDED, HOWEVER, THAT NO SUCH LOANS SHALL
BE MADE, PARTICIPATED IN, OR GUARANTEED IF THE TOTAL OF SUCH FEDERAL
ASSISTANCE TO A SINGLE BORROWER OUTSTANDING AT ANY ONE TIME WOULD EXCEED
$50,000. THE ADMINISTRATION MAY DEFER PAYMENTS ON THE PRINCIPAL OF SUCH
LOANS FOR A GRACE PERIOD AND USE SUCH OTHER METHODS AS IT DEEMS
NECESSARY AND APPROPRIATE TO ASSURE THE SUCCESSFUL ESTABLISHMENT AND
OPERATION OF SUCH CONCERN. THE ADMINISTRATION MAY, IT ITS DISCRETION,
AS A CONDITION OF SUCH FINANCIAL ASSISTANCE, REQUIRE THAT THE BORROWER
TAKE STEPS TO IMPROVE HIS MANAGEMENT SKILLS BY PARTICIPATING IN A
MANAGEMENT TRAINING PROGRAM APPROVED BY THE ADMINISTRATION: PROVIDED,
HOWEVER, THAT ANY MANAGEMENT TRAINING PROGRAM SO APPROVED MUST BE OF
SUFFICIENT SCOPE AND DURATION TO PROVIDE REASONABLE OPPORTUNITY FOR THE
INDIVIDUALS SERVED TO DEVELOP ENTREPRENEURIAL AND MANAGERIAL
SELF-SUFFICIENCY.
"(2) THE ADMINISTRATION SHALL ENCOURAGE, AS FAR AS POSSIBLE, THE
PARTICIPATION OF THE PRIVATE BUSINESS COMMUNITY IN THE PROGRAM OF
ASSISTANCE TO SUCH CONCERNS, AND SHALL SEEK TO STIMULATE NEW PRIVATE
LENDING ACTIVITIES TO SUCH CONCERNS THROUGHT HE USE OF THE LOAN
GUARANTEES, PARTICIPATIONS IN LOANS, AND POOLING ARRANGEMENTS AUTHORIZED
BY THIS SUBSECTION.
"(3) TO INSURE AN EQUITABLE DISTRIBUTION BETWEEN URBAN AND RURAL
AREAS FOR LOANS BETWEEN $3,500 AND $50,000 MADE UNDER THIS SUBSECTION,
THE ADMINISTRATION IS AUTHORIZED TO USE THE AGENCIES AND AGREEMENTS AND
DELEGATIONS DEVELOPED UNDER TITLE III FO THE ECONOMIC OPPORTUNITY ACT OF
1964, AS AMENDED, //78 STAT. 524; 81 STAT. 709, 42 USC 2841.// AS IT
SHALL DETERMINE NECESSARY.
"(4) THE ADMINISTRATION SHALL PROVIDE FOR THE CONTINUING EVALUATION
OF PROGRAMS UNDER THIS SUBSECTION, INCLUDING FULL INFORMATION ON THE
LOCATION, INCOME CHARACTERISTICS, AND TYPES OF BUSINESSES AND
INDIVIDUALS ASSISTED, AND ON NEW PRIVATE LENDING ACTIVITY STIMULATED,
AND THE RESULTS OF SUCH EVALUATION TOGETHER WITH RECOMMENDATIONS SHALL
BE INCLUDED IN THE REPORT REQUIRED BY SECTION 10(A) OF THIS ACT. //75
STAT. 666; 87 STAT. 1025, 15 USC 639.//
"(5) LOANS MADE PURSUANT TO THIS SUBSECTION (INCLUDING IMMEDIATE
PARTICIPATION IN AND GUARANTEES OF SUCH LOANS) SHALL HAVE SUCH TERMS AND
CONDITIONS AS THE ADMINISTRATION SHALL DETERMINE, SUBJECT TO THE
FOLLOWING LIMITATIONS--,
"(A) THERE IS REASONABLE ASSURANCE OF REPAYMENT OF THE LOAN;
"(B) THE FINANCIAL ASSISTANCE IS NOT OTHERWISE AVAILABLE ON
REASONALBE TERMS FROM PRIVATE SOURCES OR OTHER FEDERAL, STATE, OR
LOCAL PROGRAMS;
"(C) THE AMOUNT OF THE LOAN, TOGETHER WITH OTHER FUNDS
AVAILABLE, IS ADEQUATE TO ASSURE COMPLETION OF THE PROJECT OR
ACHIEVMENT OF THE PURPOSES FOR WHICH THE LOAN IS MADE;
"(D) THE LOAN BEARS INTEREST AT A RATE NOT LESS THAN (I) A RATE
DETERMINED BY THE SECRETARY OF THE TREASURY, TAKING INTO
CONSIDERATION THE AVERAGE MARKET YEILD ON OUTSTANDING TREASURY
OBLIGATIONS OF COMPARABEL MATURITY, PLUS (II) SUCH ADDITIONAL
CHARGE, IF ANY, TOWARD COVERING OTHER COSTS OF THE PROGRAM AS THE
ADMINISTRATION MAY DETERMINE TO BE CONSISTENT WITH ITS PURPOSES:
PROVIDED, HOWEVER, THAT THE RATE OF INTEREST CHARGED ON LOANS MADE
IN REDEVELOPMENT AREAS DESIGNATED UNDER THE PUBLIC WORKS AND
ECONOMIC DEVELOPMENT ACT OF 1965 (42 U.S.C. 3108 ET SEQ.) //79
STAT. 552; 42 USC 3121 NOTE.// SHALL NOT EXCEED THE RATE
CURRENTLY APPLICABLE TO NEW LOANS MADE UNDER SECTION 201 OF THAT
ACT (42 U.S.C. 3142); //79 STAT. 554; 87 STAT. 96, 42 USC
3141.// AND
"(E) FEES NOT IN EXCESS OF AMOUNTS NECESSARY TO COVER
ADMINISTRATIVE EXPENSES AND PROBABLE LOSSES MAY BE REQUIRED ON
LOAN GUARANTEES.
"(6) THE ADMINISTRATION SHALL TAKE SUCH STEPS AS MAY BE NECESSARY TO
INSURE THAT, IN ANY FISCAL YEAR, AT LEAST 50 PER CENTUM OF THE AMOUNTS
LOANED OR GUARANTEED PURSUANT TO THIS SUBSECTION ARE ALLOTTED TO SMALL
BUSINESS CONCERNS LOCATED IN URBAN AREAS IDENTIFIED BY THE
ADMINISTRATION AS HAVING HIGH CONCENTRATIONS OF UNEMPLOYED OR LOW-INCOME
INDIVIDUALS OR TO SMALL BUSINESS CONCERNS OWNED BY LOW-INCOME
INDIVIDUALS. THE ADMINISTRATION SHALL DEFINE THE MEANING OF LOW INCOME
AS IT APPLIES TO OWNERS OF SMALL BUSINESS CONCERNS ELIGIBLE TO BE
ASSISTED UNDER THIS SUBSECTION.
"(7) NO FINANCIAL ASSISTANCE SHALL BE EXTENDED PURSUANT TO THIS
SUBSECTION WHERE THE ADMINISTRATION DETERMINES THAT THE ASSISTANCE WILL
BE USED IN RELOCATING ESTABLISHMENTS FROM ONE AREA TO ANOTHER IF SUCH
RELOCATION WOULD RESULT IN ANY INCREASE IN UNEMPLOYMENT IN THE AREA OF
ORIGINAL LOCATION.
"(J)(1) THE ADMINISTRATION IS AUTHORIZED TO PROVIDE FINANCIAL
ASSISTANCE TO PUBLIC OR PRIVATE ORGANIZATIONS TO PAY ALL OR PART OF THE
COST OF PROJECTS DESIGNED TO PROVIDE TECHNICAL OR MANAGEMENT ASSISTANCE
TO INDIVIDUALS OR ENTERPRISES ELIGIBLE FOR ASSISTANCE UNDER SUBSECTION
7(I) OF THIS ACT, //ANTE, P. 742.// WITH SPECIAL ATTENTION TO SMALL
BUSINESS LOCATED IN URBAN AREAS OF HIGH CONCENTRATION OF UNEMPLOYED OR
LOW-INCOME INDIVIDUALS OR OWNED BY LOW-INCOME INDIVIDUALS.
"(2) FINANCIAL ASSISTANCE UNDER THIS SUBSECTION MAY BE PROVIDED FOR
PROJECTS, INCLUDING WITHOUT LIMITATION--,
"(A) PLANNING AND RESEARCH, INCLUDING FEASIBLITY STUDIES AND
MARKET RESEARCH;
"(B) THE IDENTIFICATION AND DEVELOPMENT OF NEW BUSINESS
OPPORTUNITIES;
"(C) THE FURNISHING OF CENTRALIZED SERVICES WITH REGARD TO
PUBLIC SERVICES AND GOVERNMENT PROGRAMS INCLUDING PROGRAMS
AUTHORIZED UNDER SUBSECTION 7(I);
"(D) THE ESTABLISHMENT AND STRENGTHENING OF BUSINESS SERVICE
AGENCIES, INCLUDING TRADE ASSOCIATIONS AND COOPERATIVES;
"(E) THE ENCOURAGEMENT OF THE PLACEMENT OF SUBCONTRACTS BY
MAJOR BUSINESS WITH SMALL BUSINESS CONCERNS LOCATED IN URBAN AREAS
OF HIGH CONCENTRATION OF UNEMPLOYED OR LOW-INCOME INDIVIDUALS OR
OWNED BY LOW-INCOME INDIVIDUALS, INCLUDING THE PROVISION OF
INCENTIVES AND ASSISTANCE TO SUCH MAJOR BUSINESSES SO THAT THEY
WILL AID IN THE TRAINING AND UPGRADING OF POTENTIAL SUBCONTRATORS
OR OTHER SMALL BUSINESS CONCERNS; AND
"(F) THE FURNISHING OF BUSINESS COUNSELING, MANAGEMENT
TRAINING, AND LEGAL AND OTHER RELATED SERVICES, WITH SPECIAL
EMPHASIS ON THE DEVELOPMENT OF MANAGEMENT TRAINIG PROGRAMS USING
THE RESOURCES OF THE BUSINESS COMMUNITY, INCLUDING THE DEVELOPMENT
OF MANAGEMNET TRAINING OPPORTUNITIES IN EXISTING BUSINESSES, AND
WITH EMPHASIS IN ALL CASES UPON PROVIDING MANAGEMENT TRAINING OF
SUFFICIENT SCOPE AND DURATION TO DEVELOP ENTREPRENEURIAL AND
MANAGERIAL SELF-SUFFICIENCY ON THE PART OF THE INDIVIDUALS SERVED.
"(3) THE ADMINISTRATION SHALL GIVE PREFERENCE TO PROJECTS WHICH
PROMOTE THE OWNERSHIP, PARTICIPATION IN OWNERSHIP, OR MANAGEMENT OF
SMALL BUSINESS CONCERNS BY RESIDENTS OF URBAN AREAS OF HIGH
CONCENTRATION OF UNEMPLOYED OR LOW-INCOME INDIVIDUALS, AND TO PROJECTS
WHICH ARE PLANNED AND CARRIED OUT WITH THE PARTICIPATION OF LOCAL
BUSINESSMEN.
"(4) THE FINANCIAL ASSISTANCE AUTHORIZED BY THIS SUBSECTION INCLUDES
ASSISTANCE ADVANCED BY GRANT, AGREEMENT, OR CONTRACT, BUT DOES NOT
INCLUDE THE PROCUREMENT OF PLANT OR EQUIPMENT, OR GOODS OR SERVICES.
"(5) THE ADMINISTRATION IS AUTHORIZED TO MAKE PAYMENTS UNDER GRANTS
AND CONTRACTS ENTERED INTO UNDER THIS SUBSECTION IN LUMP SUM OR
INSTALLMENTS, AND IN ADVANCE OR BY WAY OF REIMBURSEMENT, AND IN THE CASE
OF GRANTS, WITH NECESSARY ADJUSTMENTS ON ACCOUNT OF OVERPAYMENTS OR
UNDERPAYMENTS.
"(6) TO EXTENT FEASIBLE, SERVICES UNDER THIS SUBSECTION SHALL BE
PROVIDED IN A LOACTION WHICH IS EASILY ACCESSIBLE TO THE INDIVIDUALS AND
SMALL BUSINESS CONCERNS SERCED.
"(7) THE ADMINISTRATION SHALL PROVIDE FOR AN INDEPENDENT AND
CONTINUING EVALATION OF PROGRAMS UNDER THIS SUBSECTION, INCLUDING FULL
INFORMATION ON, AND ANALYSIS OF, THE CHARACTER AND IMPACT OF MANAGERIAL
ASSISTANCE PROVIDED, THE LOCATION, INCOME CHARACTERISTICS, AND TYPES OF
BUSINESSES AND INDIVIDUALS ASSISTED, AND THE EXTENT TO WHICH PRIVATE
RESOURCES AND SKILLS HAVE BEEN INVOLVED IN THESE PROGRAMS. SUCH
EVALUATION TOGETHER WITH ANY RECOMMENDATIONS DEEMED ADVISABLE BY THE
ADMINISTRATION SHALL BE INCLUDED IN THE REPORT REQUIRED BY SECTION 10(
A) OF THIS ACT. //75 STAT. 666; 87 STAT. 1025, 15 USC 639.//
"(8) THE ADMINISTRATION SHALL TAKE SUCH STRPS AS MAY BE NECESSARY AND
APPROPRIATE, IN COORDINATION AND COOPERATION WITH THE HEADS OF OTHER
FEDERAL DEPARTMENTS AND AGENCIES, SO THAT CONTRACTS, SUBCONTRACTS, AND
DEPOSITS MADE BY THE FEDERAL GOVERNMENT OR IN CONNECTION WITH PROGRAMS
AIDED WITH FERERAL FUNDS ARE PLACED IN SUCH A WAY AS TO FURTHER THE
PURPOSES OF THIS SUBSECTION AND OF SUBSECTION 7( I) OF THIS ACT.
//ANTE. P. 742.// THE ADMINISTRATION SHALL PROVIDE FOR THE CONTINUING
EVALUATION OF PROGRAMS UNDER THIS SUBSECTION AND THE RESULTS OF SUCH
EVALUATION TOGETHER WITH RECOMMINDATIONS SHALL BE INCLUDED IN THE REPORT
REQUIRED BY SECTION 10(A) OF THIS ACT.
"(K) IN CARRYING OUT ITS FUNCTIONS UNDER SUBSECTIONS 7(I) AND 7(J) OF
THIS ACT, //ANTE. P. 744.// THE ADMINISTARTION IS AUTHORIZED--,
"(1) TO UTILIZE, WITH THEIR CONSENT, THE SERVICES AND
FACILITIES OF FEDERAL AGENCIES WITHOUT REIMBURSEMENT, AND, WITH
THE CONSENT OF ANY STATE OR POLITICAL SUBDIVISION OF A STATE,
ACCEPT AND UTILIZE THE SERVICES AND FACILITIES OF SUCH STATE OR
SUBDIVISION WITHOUT REIMBURSEMENT;
"(2) TO ACCEPT, IN THE NAME OF THE ADMINISTRATION, AND EMPLOY
OR DISPOSE OF IN FURTHERANCE OF THEPURPOSES OF THIS ACT, ANY MONEY
OR PROPERTY, REAL, PRESONAL, OR MIXED, TANGIBLE, OR INTANGIBLE,
RECEIVED BY GIFT, DEVISE, BEQUEST, OR OTHEWISE;
"(3) TO ACCEPT VOLUNTARY AND UNCOMPENSATED SERVICES,
NOTWITHSTANDING THE PROVISIONS OF SECTION 3679(B) OF THE REVISED
STATUTES (31 U.S.C. 655(B); //31 USC 665.// AND
"(4) TO EMPLOY EXPERTS AND CONSULTANTS OR ORGANIZATIONS THEREOF
AS AUTHORIZED BY SECTION 15 OF THE ADMINISTRATIVE EXPENSES ACT OF
1946 (5 U.S.C. 55A), //80 STAT. 416, 5 USC 3109.// EXCEPT THAT NO
INDIVIDUAL MAY BE EMPLOYED UNDER THE AUTHORITY OF THIS SUBSECTION
FOR MORE THAN ONE HUMDRED DAYS IN ANY FICAL YEAR; TO COMPENSATE
INDIVIDUALS SO EMPLOYED AT RATES NOT IN EXCESS OF $100 PER DIEM,
INCLUDING TAAVELTIME; AND TO ALLOW THEM, WHILE AWAY FROM THEIR
HOMES OR REGULAR PLACES OF BUSINESS, TRAVEL EXPENSES (INCLUDING
PER DIEM IN LIEU OF SUBSISTENCE) AS AUTHORIZED BY SECTION 5 OF
SUCH ACT (5 U.S.C. 73B - 2) //80 STAT. 499; 83 STAT. 190, 5 USC
5703.// FOR PERSONS IN THE GOVERNMENT SERVICE EMPLOYED
INTERMITTENTLY, WHILE SO EMPLOYED: PROVIDED, HOWEVER, THAT
CONTRACTS FOR SUCH EMPLOYMENT MAY BE RENEWED ANNUALLY."
(B) TITLE IV OF THE ECONOMIC OPPORTUNITY ACT OF 1964 IS HEREBY
REPEALED; AND ALL REFERENCES TO SUCH TITLE IN THE REMAINDER TO THAT ACT
ARE REPEALED. //78 STAT. 526, 42 USC 2901.//
SEC. 3. THE SMALL BUSINESS ACT //72 STAT. 385, 15 USC 634.// IS
FURTHER AMENDED--,
(1) BY AMENDING SECTION 5(B) BY STRIKING OUT "AND" FOLLOWING
PARAGRAPH (8), BY STRIKING OUT THE PERIOD AT THE END OF PARAGRAPH
(9) AND INSERTING IN LIEU THEREOF A SEMICOLON AND BY ADDING AT THE
END OF PARAGRAPH (9) THE FOLLOWING NEW PARAGRAPHS:
"(10) UPON PURCHASE BY THE ADMINISTRATION OF ANY DEFERRED
PARTICIPATION ENTERED INTO UNDER SECTION 7 OF THIS ACT, //ANTE, P.
742.// CONTINUE TO CHARGE A RATE OF INTEREST NOT TO EXCEED THAT
INITIALLY CHARGED BY THE PARTICIPATING INSTITUTION ON THE AMOUNT
SO PURCHASED FOR THE REMINING TERM OF THE INDEBTEDNESS; AND
"(11) MAKE SUCH INVESTIGATIONS AS HE DEEMS NECESSARY TO
DETERMINE WHETHER A RECIPIENT OF OR PARTICIPANT IN ANY ASSISTANCE
UNDER THIS ACT OR ANY OTHER PERSON HAS ENGAGED OR IS ABOUT TO
ENGAGE IN ANY ACTS OR PRACTICES WHICH CONSTITUTE OR WILL
CONSTITUTE A VIOLATION OF ANY PROVISION OF THIS ACT, OR OF ANY
RULE OR REGULATION UNDER THIS ACT, OR OF ANY ORDER ISSUED UNDER
THIS ACT. THE ADMINISTRATON SHALL PERMIT ANY PERSON TO FILE WITH
IT A STATEMENT IN WRITING, UNDER OATH OR OTHERWISE AS THE
ADMINISTRATION SHALL DETERMINE, AS TO ALL THE FACTS AND
CIRCUMSTANCES CONCERNING THE MATTER TO BE INVESTIGATED. FOR THE
PURPOSE OF ANY INVESTIGATION, THE ADMINISTRATION IS EMPOWERED TO
ADMINISTER OATHS AND AFFIRMATIONS, SUBPENA WITNESSES, COMPEL THEIR
ATTENDANCE, TAKE EVIDENCE, AND REQUIRE THE PRODUCTION OF ANY
BOOKS, PAPERS, AND DOCUMENTS WHICH ARE RELEVANT TO THE INQUIRY.
SUCH ATTENDANCE OF WITNESSES AND THE PRODUCTION OF ANY SUCH
RECORDS MAY BE REQUIRED FOR JANY PLACE IN THE UNITED STATES. IN
CASE OF CONTUMACY BY, OR REFUSAL TO OBEY A SUBPENA ISSUED TO, ANY
PERSON, INCLUDING A RECIPIENT OR PARTICIPANT, THE ADMINISTRATION
MAY INVOKE THE AID OF ANY COURT OF THE UNITED STATES WITHIN THE
JURISDICTION OF WHICH SUCH INVESTIGATION OR PROCEEDING IS CARRIED
ON, OR WHERE SUCH PERSON RESIDES OR CARRIES ON BUSINESS, IN
REQUIRING THE ATTENDANCE AND TESTIMONY OF WITNESSES AND THE
PRODUCTION OF BOOKS, PAPERS, AND DOCUMENTS; AND SUCH COURT MAY
ISSUE AN ORDER REQUIRING SUCH PERSON TO APPEAR BEFORE THE
ADMINISTRATION, THERE TO PRODUCE RECORDS, IF SO ORDERED, OR TO
GIVE TESTIMONY TOUCHING THE MATTER UNDER INVESTIGATION. ANY
FAILURE TO OBEY SUCH ORDER OF THE COURT MAY BE PUNISHED BY SUCH
COURT AS A CONTEMPT THEREOF. ALL PROCESS IN ANY SUCH CASE MAY BE
SERVED IN THE JUDICIAL DISTRICT WHEREOF SUCH PERSON IS AN
INHABITANT OR WHEREVER HE MAY BE FOUND."; AND
(2) BY STRIKING OUT THE THIRD SENTENCE IN PARAGRAPH (2) OF
SECTION 7(H) //86 STAT. 1316; 87 STAT. 1024, 15 USC 636.// AND
INSERTING IN LIEU THEREOF: "THE ADMINISTRATION'S SHARE OF ANY
LOAN MADE UNDER THIS SUBSECTION SHALL BEAR INTEREST AT THE RATE OF
3 PER CENTUM PER ANNUM."
SEC. 4. SECTION 10 OF THE SMALL BUSINESS ACT //72 STAT. 393, 15 USC
639.// IS AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING NEW
SUBSECTION:
"(G) THE ADMINISTRATION SHALL TRANSMIT, NOT LATER THAN DECEMBER 31 OF
EACH YEAR, TO THE COMMITTEE ON BANKING, HOUSING AND URBAN AFFAIRS OF THE
SENATE AND THE COMMITTEE ON BANKING AND CURRENCY OF THE HOUSE OF
REPRESENTATIVES A SEALED REPORT WITH RESPECT TO--
"(1) COMPLAINTS ALLEGING ILLEGAL CONDUCT BY EMPLOYEES OF THE
ADMINISTRATION WHICH WERE RECEIVED OR ACTED UPON BY THE
ADMINISTRATION DURING THE PRECEDING FISCAL YEAR; AND
"(2) INVESTIGATIONS UNDERTAKEN BY THE ADMINISTRATION, INCLUDING
EXTERNAL AND INTERNAL AUDITS AND SECURITY AND INVESTIGATION
REPORTS."
SEC. 5 SECTION 18 OF THE SMALL BUSINESS ACT //15 USC 647.// IS
AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING NEW SENTENCE: "IF
LOAN APPLICATIONS ARE BEING REFUSED OR LOANS DENIED BY SUCH OTHER
DEPARTMENT OR AGENCY RESPONSIBLE FOR SUCH WORK OR ACTIVITY DURE TO
ADMINISTRATIVE WITHHOLDING FROM OBLIGATION OR WITHHOLDING FROM
APPORTIONMENT, OR DUE TO ADMINISTRATIVELY DECLARED MORATORIUM, THEN, FOR
PURPOSES OF THIS SECTION, NO DUPLICATION SHALL BE DEEMED TO HAVE
OCCURRED.".
SEC. 6. (A) THE SMALL BUSINESS INVESTMENT ACT OF 1958 IS
AMENDED--,
(1) BY STRIKING OUT IN THE TABLE OF CONTENTS IN SECTION 101 ALL
REFERENCES TO TITLE IV AND SECTION NUMBERS THEREIN AND INSERTING
IN LIEU THEREOF THE FOLLWING:
"PART A--LEASE GUARANTEES
"SEC. 401. AUTHORITY OF THE ADMINISTRATION.
"SEC. 402. POWERS.
"SEC. 403. FUND.
"PART B--SURETY BOND GUARANTEES
"SEC. 410. DEFINITIONS.
"SEC. 411. AUTHORITY OF THE ADMINISTRATION.
"SEC. 412. FUND.";
(2) BY STRIKING OUT SECTION 403 //84 STAT. 1812, 15 USC 694.//
AND INSERTING IN LIEU THEREOF THE FOLLOWING:
"SEC. 403. THERE IS HEREBY CREATED WITHIN THE TREASURY A SEPARATE
FUND FOR GUARANTEES WHICH SHALL BE AVAILABLE TO THE ADMINISTRATOR
WITHOUT FISCAL YEAR LIMITATIONS AS A REVOLVING FUND FOR THE PURPOSES OF
THIS PART. THERE ARE AUTHORIZED TO BE APPROPRIATED TO THE FUND FROM
TIME TO TIME SUCH AMOUNTS NOT TO EXCEED $10,000,000 TO PROVIDE CAPITAL
FOR THE FUND. ALL AMOUNTS RECEIVED BY THE ADMINISTRATOR, INCLUDING ANY
MONEYS, PROPERTY, OR ASSESTS DERIVED BY HIM FROM HIS OPERATIONS IN
CONNECTION WITH THIS PART, SHALL BE DEPOSITED IN THE FUND, ALL EXPENSES
AND PAYMENTS PURSEUANT TO PERATIONS OF THE ADMINISTRATOR UNDER THIS PART
SHALL BE PAID FROM THE FUND. FROM TIME TO TIME, AND AT LEAST AT THE
CLOSE OF EACH FISCAL YEAR, THE ADMINISTRATOR SHALL PAY FROM THE FUNF
INTO TREASURY AS MISCELLANEOUS RECEIPTS INTEREST AT A RATE DETERMINED BY
THE SECRETARY OF THE TREASURY ON THE CUMULATIVE AMOUNT OF APPROPRIATIONS
AVAILABLE AS CAPITAL TO THE FUND, LESS THE AVERAGE UNDISBURSED CASH
BALANCE IN THE FUND DURING THE YEAR. THE RATE OF SUCH INTEREST SHALL BE
DETERMINED BY THE SECRETARY OF THE TREASURY, AND SHALL NOT BE LESS THAN
A RATE DETERMINED BY TAKING INTO CONSIDERATION THE AVERAGE MARKET YIELD
DURING THE MONTH PRECEDING EACH FISCAL YEAR ON OUTSTANDING MARKETABLE
OBLIGATIONS OF THE UNITED STATES WITH REMAINING PERIODS TO MATURITY
COMPARABLE TO THE AVERAGE MATURITY OF GUARANTEES FROM THE FUND. MONEYS
IN THE FUND NOT NEEDED FOR THE PAYMENT OF CURRENT OPERATING EXPENSES OR
FOR THE PAYMENT OF CLAIMS ARISING UNDER THIS PART MAY BE INVESTED IN
BONDS OR OTHER OBLIGATIONS OF, OR BONDS OR OTHER OBLIGATIONS GUARANTEED
AS TO PRINCIPAL AND INTEREST BY, THE UNITED STATES; EXCEPT THAT MONEYS
PROVIDED AS CAPITAL FOR THE FUND SHALL NOT BE SO INVESTED."; //84 STAT.
1813, 15 USC 694B.//
(3) BY STRIKING OUT "$500,000" IN SECTION 411 AND INSERTING IN
LIEU THEREOF "$1,000,000"; AND
(4) BY ADDING AFTER SECTION 411 THE FOLLOWING NEW SECTION:
"SEC. 412. //15 USC 694C.// THERE IS HEREBY CREATED WITHIN THE
TREASURY A SEPARATE FUND FOR GUARANTEES WHICH SHALL BE AVAILABLE TO THE
ADMINISTATOR WITHOUT FISCAL YEAR LIMITATION AS A REVOLVING FUND FOR THE
PURPOSES OF THIS PART. THERE ARE AUTHORIZED TO BE APPROPRIATED TO THE
FUND FROM TIME TO TIME SUCH AMOUNTS NOT TO EXCEED $35,000,000 TO PROVIDE
CAPITAL FOR THE FUND. ALL AMOUNTS RECEIVED BY THE ADMINISTRATOR,
INCLUDING ANY MONEYS, PROPERTY, OR ASSETS DERIVED BY HIM FROM HIS
OPERATIONS IN CONNECTION WITH THIS PART, SHALL BE DEPOSITED IN THE FUND.
ALL EXPENSES AND PAYMENTS PURSUANT TO OPERATIONS OF THE ADMINISTRATOR
UNDER THIS PART SHALL BE PAID FROM THE FUND. FROM TIME TO TIME, AND AT
LEAST AT THE CLOSE OF EACH FISCAL YEAR, THE ADMINISTRATOR SHALL PAY FROM
THE FUND INTO TREAURY AS MISCELLANEOUS RECEIPTS INTEREST AT A RATE
DETERMINED BY THE SECRETARY OF THE TREASURY ON THE CUMULATIVE AMOUNT OF
APPROPRIATIONS AVAILABLE AS CAPITAL TO THE FUND, LESS THE AVERAGE
UNDISBURSED CASH BALANCE IN THE FUND DURING THE YEAR. THE RATE OF SUCH
INTEREST SHALL BE DETERMINED BY SECRETARY OF THE TREASURY, AND SHALL NOT
BE LESS THAN A RATE DETERMINED BY TAKING INTO CONSIDERATION THE AVERAGE
MARKET YIELD DURING THE MONTY PRECEDING EACH FISCAL YEAR ON OUTSTANDING
MARKETABLE OBLIGATIONS OF THE UNITED STATES WITH REMAINING PERIODS TO
MATURITY COMPARABLE TO THE AVERAGE MATURITY OF GUARANTEES FROM THE FUND.
MONEYS IN THE FUND NOT NEEDED FOR THE PAYMENT OF CURRENT OPERATING
EXPENSES OR FOR THE PAYMENT OF CLAIMS ARISING UNDER THIS PART MAY BE
INVESTED IN BONDS OR OTHER OBLIGATIONS OF, OR BONDS OR OTHER OBLIGATIONS
GUARANTEED AS TO PRINCIPAL AND INTEREST BY, THE UNITED STATES; EXCEPT
THAT MONEYS PROVIDED AS CAPITAL FOR THE FUND SHALL NOT BE SO INVESTED."
(B) UNEXPECTED BALANCES OF CAPITAL PREVIOUSLY TRANSFERRED TO THE FUND
PURSUANT TO SECTION 403 OF THE SMALL BUSINESS INVESTMENT ACT OF 1958 (15
U.S.C. 694), //15 USC 694 NOTE, ANTE, P. 747.// AS IN EFFECT PRIOR TO
THE EFFECTIVE DATE OF THIS ACT, SHALL BE ALLOCATED, TOGETHER WITH
RELATED ASSETS AND LIABILITIES, TO THE FUNDS ESTABLISHED BY PARAGRAPHS
(2) AND (4) OF SUBSECTION (A) OF THIS SECTION IN SUCH AMOUNTS AS THE
ADMINISTRATOR SHALL DETERMINE. IN ADDITION, THE ADMINISTRATOR IS
AUTHORIZED TO TRANSFER TO THE FUND ESTABLISHED BY PARAGRAPH (4) OF
SUBSECTION (A) OF THIS SECTION NOT TO EXCEED $2,000,000 FROM THE FUND
ESTABLISHED UNDER SECTION 4(C)(1)(B) OF THE SMALL BUSINESS ACT:
PROIVDED, THAT SECTION 4(C)(6) AND THE LAST SENTENCE OF SECTION 4(C)(5)
//80 STAT. 132, 15 USC 633.// SHALL NOT APPLY TO ANY AMOUNTS SO
TRANSFERRED.
SEC. 7. SECTION 4(B) OF THE SMALL BUSINESS ACT IS AMENDED-- //72
STAT. 384; 87 STAT. 1025.//
(1) BY STRIKING OUT "THREE" IN THE THIRD SENTENCE AND INSERTING
IN LIEU THEREOF "FOUR"; AND
(2) BY INSERTING AFTER THE THIRD SENTENCE THE FOLLOWING NEW
SENTENCE: "ONE OF THE ASSOCIATE ADMINISTRATORS SHALL BE
DESIGNATED AT THE TIME OF HIS APPOINTMENT AS THE ASSOCIATE
ADMINISTRATOR FOR MINORITY SMALL BUSINESS AND SHALL BE RESPONSIBLE
TO THE ADMINISTRATOR FOR THE FORMULATION OF POLICY RELATING TO THE
ADMINISTRATION'S PROGRAMS WHICH PROVIDE ASSISTANCE TO MINORITY
SMALL BUSINESS CONCERNS AND IN THE REVIEW OF THE ADMINISTRATION'S
EXECUTION OF SUCH PROGRAMS IN LIGHT OF SUCH POLICY."
SEC. 8. SECTIONS 7(A)(4)(B) AND 7(A)(5)(B) OF THE SMALL BUSINESS ACT
//72 STAT. 387, 15 USC 636.// ARE EACH AMENDED TO READ AS FOLLOWS: "THE
RATE OF INTEREST FOR THE ADMINISTRATION'S SHARE OF ANY SUCH LOAN SHALL
BE THE AVERAGE ANNUAL INTEREST RATE ON ALL INTEREST-BEARING OBLIGATIONS
OF THE UNITED STATES THEN FORMING A PART OF THE PUBLIC DEBT AS COMPUTED
AT THE END OF THE FISCAL YEAR NEXT PRECEDING THE DATE OF THE LOAN
ANDADJUSTED TO THE NEAREST ONE-EIGHTH OF 1 PER CENTUM PLUS ONE-QUARTER
OF 1 PER CENTUM PER ANNUM; AND".
SEC. 9. (A) SECTION 7(B) OF THE SMALL BUSINESS ACT //87 STAT.,
1024.// IS AMENDED BY STRIKING OUT THE PERIOD AT THE END OF PARAGRAPH
(M) AND INSERTING IN LIEU THEREOF"; AND" AND BY ADDING IMMEDIATELY
AFTER PARAGRAPH (7) THE FOLLOWING NEW PARAGRAPH:
"(8) TO MAKE SUCH LOANS (EITHER DIRECTLY OR IN COOPERATION WITH
BANKS OR OTHER LENDING INSTITUTIONS THROUGH AGREEMENTS TO
PARTICIPATE ON AN IMMEDIATE OR DEFERRED BASIS) AS THE
ADMINISTRATION MAY DETERMINE TO BE NECESSARY OR APPROPRIATE TO
ASSIST, OR REFINANCE THE EXISTING INDEBTEDNESS OF, ANY SMALL
BUSINESS CONCERN SERIOUSLY AND ADVERSELY AFFECTED BY A SHORTAGE OF
FUEL, ELECTRICAL ENERGY, OR ENERGY-PRODUCING RESOURCES, OR BY A
SHORTAGE OF RAW OR PROCEDDED MATERIALS RESULTING FROM SUCH
SHORTAGES, IF THE ADMINISTRATION DETERMINES THAT SUCH CONCERN HAS
SUFFERED OR IS LIKELY TO SUFFER SUBSTANTIAL ECONOMIC INJURY
WITHOUT ASSISTANCE UNDER THIS PARAGRAPH."
(B) THE FIRST PARAGRAPH FOLLOWING THE NUMBERED PARAGRAPHS OF SECTION
7(B) OF THE SMALL BUSINESS ACT //86 STAT. 554, 15 USC 636.// IS AMENDED
BY STRIKING OUT "OR (7)," IMMEDIATELY FOLLOWING "(6)," AND INSERTING IN
LIEU THEREOF "(7), OR (8),".
SEC. 10. SECTION 5 OF THE SMALL BUSINESS ACT //72 STAT. 385; 75
STAT. 666, 15 USC 634.// IS AMENDED BY ADDING AT THE END THEREOF THE
FOLLOWING NEW SUBSECTION:
"(E) THE ADMINISTRATOR SHALL DESIGNATE AN INDIVIDUAL WITHIN THE
ADMINISTRATION TO BE KNOWN AS THE CHIEF COUNSEL FOR ADVOCACY AND TO
PERFORM THE FOLLOWING DUTIES:
"(1) SERVE AS A FOCAL POINT FOR THE RECEIPT OF COMPLAINTS,
CRITICISMS, AND SUGGESTIONS CONCERNING THE POLICIES AND ACTIVITIES
OF THE ADMINISTRATION AND ANY OTHER FEDERAL AGENCY WHICH AFFECTS
SMALL BUSINESSES;
"(2) COUNSEL SMALL BUSINESSES ON HOW TO RESOLVE QUESTIONS AND
PROBLEMS CONCERNING THE RELATIONSHIP OF THE SMALL BUSINESS TO THE
FEDERAL GOVERNMENT;
"(3) DEVELOP PROPOSALS FOR CHANGES IN THE POLICIES AND
ACTIVITIES OF ANY AGENCY OF THE FEDERAL GOVERNMENT WHICH WILL
BETTER FULFILL THE PURPOSES OF THE SMALL BUSINESS ACT //72 STAT.
384, 15 USC 631 NOTE.// AND COMMUNICATE SUCH PROPOSALS TO THE
APPROPRIATE FEDERAL AGENCIES;
"(4) REPRESENT THE VIEWS AND INTERESTS OF SMALL BUSINESSES
BEFORE OTHER FEDERAL AGENCIES WHOSE POLICIES AND ACTIVITIES MAY
AFFECT SMALL BUSINESSES; AND
"(5) ENLIST THE COOPERATION AND ASSISTANCE OF PUBLIC AND
PRIVATE AGENCIES, BUSINESSES, AND OTHER ORGANIZATIONS IN
DISSEMBINATING INFORMATION ABOUT THE PROGRAMS ANDSERVICES PROVIDED
BY THE FEDERAL GOVERNMENT WHICH ARE OF BENEFIT TO SMALL
BUSINESSES, AND INFORMATION ON HOW SMALL BUSINESSES CAN
PARTICIPATE IN OR MAKE USE OF SUCH PROGRAMS AND SERVICES.".
SEC. 11. (A) THE FIRST SENTENCE OF LSECTION 411(C) OF THE SMALL
BUSINESS INVESTMENT ACT OF 1958 //84 STAT. 1813 , 15 USC 694B.// IS
AMENDED BY INSERTING "ADMINISTER THIS PROGRAM ON A PRUDENT AND
ECONOMICALLY JUSTIFIABLE BASIS AND SHALL" IMMEDIATELY AFTER "SHALL".
(B) SECTION 411(C) OF THE SMALL BUSINESS INVESTMENT ACT OF 1958 IS
AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING: "WITHIN 30 DAYS
AFTER THE DATE OF ENACTMENT OF THIS SENTENCE AND AT MONTHLY INTERVALS
THEREAFTER, THE ADMINISTRATION SHALL PUBLISH THE COST OF THE PROGRAM TO
THE ADMINISTRATION FOR THE MONTH IMMEDIATELY PRECEDING THE DATE OF
PUBLICATION. THE ADMINISTRATION SHALL CONDUCT A STUDY OF THE PROGRAM IN
ORDER TO DETERMINE WHAT MUST BE DONE TO MAKE THE PROGRAM ECONOMICALLY
SOUND. WITHIN ONE YEAR AFTER THE DATE OF ENACTMENT OF THIS SENTENCE,
THE ADMINISTRATION SHALL TRANSMIT A REPORT TO CONGRESS CONTAINING A
DETAILED STATEMENT OF THE FINDINGS AND CONCLUSIONS OF THE STUDY,
TOGETHER WITH ITS RECOMMENDATIONS FOR SUCH LEGISLATIVE AND
ADMINISTRATIVE ACTIONS AS IT DEEMS APPROPRIATE.".
SEC. 12. SECTION 7(A) OF THE SMALL BUSINESS ACT //72 STAT. 387; 84
STAT. 1618, 15 USC 636.// IS AMENDED BY ADDING AT THE END THEREOF THE
FOLLOWING NEW PARAGRAPH:
"(8) DURING THE FISCAL YEAR ENDING JUNE 30, 1975, THE
ADMINISTRATOR SHALL MAKE DIRECT LOANS UNDER THIS SUBSECTION IN AN
AGGREGATE AMOUNT OF NOT LESS THAN $400,000,000.".
SEC. 13. THE GENERAL ACCOUNTING OFFICE IS DIRECTED TO CONDUCT A
FULLSCALE AUDIT OF THE SMALL BUSINESS ADMINISTRATION, INCLUDING ALL
FIELD OFFICES. THIS AUDIT SHALL BE SUBMITTED TO THE HOUSE AND SENATE
NOT LATER THEN SIX MONTHS FROM THE DATE OF ENACTMENT OF THIS ACT. // 15
USC 633 NOTE.//
LEGISLATIVE HISTORY:
HOUSE REPORT NO. 93 - 1178 ACCOMPANYING H.R. 15578 (COMM. ON BANKING
AND CURRENCY).
SENATE REPORT NO. 93 - 776 (COMM. ON BANKING, HOUSING, AND URBAN
AFFAIRS).
CONGRESSIONAL RECORD, VOL. 120 (1974):
MAY 2, 6, CONSIDERED AND PASSED SENATE.
AUG. 1, CONSIDERED AND PASSED HOUSE, AMENDED, IN LIEU OF H.R.
15578.
AUG. 7, SENATE CONCURRED IN HOUSE, AMENDMENT.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, VOL. 10, NO. 35:
AUG. 24, PRESIDENTIAL STATEMENT.
PUBLIC LAW 93-385, 88 STAT 741
BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE
UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT SECTION 225 (I) OF
THE PUBLIC HEALTH SERVICE ACT //86 STAT. 1295, 42 USC 234.// IS AMENDED
BY INSERTING BEFORE THE PERIOD", AND $40,000,000 FOR THE FISCAL YEAR
ENDING JUNE 30, 1975".
SEC. 2. (A) SECTION 742(A) OF THE PUBLIC HEALTH SERVICE ACT //85
STAT. 449, 42 USC 294B.// IS AMENDED BY STRINKING OUT "AND" AFTER
"1973," AND BY INSERTING AFTER "1974" THE FOLLOWING: ", AND $60,000,000
FOR THE FISCAL YEAR ENDING JUNE 30, 1975".
(B) SECTION 740 (B) (4) OF SUCH ACT //85 STAT. 451, 42 USC 294.// IS
AMENDED BY STRIKING OUT "1974" AND INSERTING IN LIEU THEREOF "1975".
SEC. 3. (A) SECTION 824 OF THE PUBLIC HEALTH SERVICE ACT //78 STAT.
915; 85 STAT. 477, 42 USC 297C.// IS AMENDED--,
(1) BY STRIKING OUT "AND" AFTER "1973,"; AND
(2) BY INSERTING AFTER "1974," THE FIRST TIME IT APPEARS THE
FOLLOWING: "AND $35,000,000 FOR THE FISCAL YEAR ENDING JUNE 30,
1975,".
(B) SECTION 822 (B)(4) OF SUCH ACT IS AMENDED BY STRIKING OUT "1974"
AND INSERTING IN LIEU THEREOF "1975". //85 STAT. 478, 42 USC 297A.//
LEGISLATIVE HISTORY:
HOUSE REPORT NO. 93 - 1240 ACCOMPANYING H.R. 16077 (COMM. ON
INTERSTATE AND
CONGESSIONAL RECORD, VO.. 120 (1974):
JULY 23, CONSIDERED AND PASSED SENATE.
AUG. 5, CONSIDERED AND PASSED HOUSE, AMENDED, IN LIEU OF H.R.
16007.
AUG. 8, SENATE CONCURRED IN HOUSE AMENDMENTS.
PUBLIC LAW 93-384, 88 STAT 741
RESOLVED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE UNITED
STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT THE SOCIETY OF THE FIRST
INFRANTRY DIVISION--FIRST DIVISION MEMORIAL COMMITTEE IS AUTHORIZED TO
ERECT (AT NO COST TO THE UNITED STATES OR THE DISTRICT OF COLUMBIA) A
MONUMENT TO THE DEAD OF THE FIRST INFANTRY DIVISION, UNITED STATES
FORCES IN VIETNAM, ON THE PUBLIC GROUNDS OF THE UNITED STATES IN THE
DISTRICT OF COLUMBIA PREVIOUSLY SET ASIDE FOR MEMORIAL PURPOSES OF THE
FIRST INFANTRY DIVISION, ADJACENT TO THE MONUMENT TO THE DEAD OF THE
FIRST INFANTRY DIVISION, AMERICAN EXPEDITIONARY FORCES IN WORLD WAR 1,
AND ADJACENT TO THE MONUMENT TO THE DEAD OF THE FIRST INFANTRY DIVISION,
UNITED STATES FORCES IN WORLD WAR II.
SEC. 2. THE DESIGN AND PLANS FOR SUCH MONUMENT SHALL BE SUBJECT TO
THE APPROVAL OF THE SECRETARY OF THE INTERIOR, THE NATIONAL COMMISSION
OF FINE ARTS, AND THE NATIONAL CAPITAL PLANNING COMMISSION.
SEC. 3. THE SECRETARY OF THE INTERIOR SHALL BE RESPONSIBLE FOR THE
MAINTENANCE AND CARE OF ANY SUCH MONUMENT, IN ACCORDANCE WITH THE
PROVISIONS OF THE ACT ENTITLED "AN ACT TO ESTABLISH A NATIONAL PARK
SERVICE, AND FOR OTHER PURPOSES", APPROVED AUGUST 25, 1916, //39 STAT.
353, 16 USC 1.// AND THE ACT ENTITLED "AN ACT TO PROVIDE FOR THE
PRESERVATION OF HISTORIC AMERICAN SITES, BUILDINGS, OBJECTS, AND
ANTIQUITIES OF NATIONAL SIGNIFICANCE, AND FOR OTHER PURPOSES", APPROVED
AUGUST 21, 1935. //J. STAT. 666, 16 USC 461.//
LEGISLATIVE HISTORY:
HOUSE REPORT NO. 93 - 1254 (COMM. ON HOUSE ADMINISTRATION).
CONGRESSIONAL RECORD:
VOL. 119 (1973): FEB. 19, CONSIDERED AND PASSED SENATE.
VOL. 120 (1974): AUG. 19, CONSIDERED AND PASSED HOUSE.
PUBLIC LAW 93-383, HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974, 88
STAT 633.
BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE
UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, THAT THIS ACT MAY BE
CITED AS THE "HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974". //42 USC
5301 NOTE.//
SEC. 101. (A) THE CONGRESS FINDS AND DECLARES THAT THE NATION'S
CITIES, TOWNS, AND SMALLER URBAN COMMUNITIES FACE CRITICAL SOCIAL,
ECONOMIC, AND ENVIRONMENTAL PROBLEMS ARISING IN SIGNIFICANT MEASURE
FROM--,
(1) THE GROWTH OF POPULATION IN METROPOLITAN AND OTHER URBAN
AREAS, AND THE CONCENTRATION OF PERSONS OF LOWER INCOME IN CENTRAL
CITIES; AND
(2) INADEQUATE PUBLIC AND PRIVATE INVESTMENT AND REINVESTMENT
IN HOUSING AND OTHER PHYSICAL FACILITIES, AND RELATED PUBLIC AND
SOCIAL SERVICES, RESULTING IN THE GROWTH AND PERSISTENCE OF URBAN
SLUMS AND BLIGHT AND THE MARKED DETERIORATION OF THE QUALITY OF
THE URBAN ENVIRONMENT.
(B) THE CONGRESS FURTHER FINDS AND DECLARES THAT THE FUTURE WELFARE
OF THE NATION AND THE WELL-BEING OF ITS CITIZENS DEPEND ON THE
ESTABLISHMENT AND MAINTENANCE OF VIABLE URBAN COMMUNITIES AS SOCIAL,
ECONOMIC, AND POLITICAL ENTITIES, AND REQUIRE--,
(1) SYSTEMATIC AND SUSTAINED ACTION BY FEDERAL, STATE, AND
LOCAL GOVERNMENTS TO ELIMINATE BLIGHT, TO CONSERVE AND RENEW OLDER
URBAN AREAS, TO IMPROVE THE LIVING ENVIRONMENT OF LOW- AND
MODERATE-INCOME FAMILIES, AND TO DEVELOP NEW CENTERS OF POPULATION
GROWTH AN ECONOMIC ACTIVITY;
(2) SUBSTANTIAL EXPANSION OF AND GREATER CONTINUITY IN THE
SCOPE AND LEVEL OF FEDERAL ASSISTANCE, TOGETHER WITH INCREASED
PRIVATE INVESTMENT IN SUPPORT OF COMMUNITY DEVELOPMENT ACTIVITIES;
AND
(3) CONTINUING EFFORT AT ALL LEVELS OF GOVERNMENT TO STREAMLINE
PROGRAMS AND IMPROVE THE FUNCTIONING OF AGENCIES RESPONSIBLE FOR
PLANNING, IMPLEMENTING, AND EVALUATING COMMUNITY DEVELOPMENT
EFFORTS.
(C) THE PRIMARY OBJECTIVE OF THIS TITLE IS THE DEVELOPMENT OF VIABLE
URBAN COMMUNITIES, BY PROVIDING DECENT HOUSING AND A SUITABLE LIVING
ENVIRONMENT AND EXPANDING ECONOMIC OPPORTUNITIES, PRINCIPALLY FOR
PERSONS OF LOW AND MODERATE INCOME. CONSISTENT WITH THIS PRIMARY
OBJECTIVE, THE FEDERAL ASSISTANCE PROVIDED IN THIS TITLE IS FOR THE
SUPPORT OF COMMUNITY DEVELOPMENT ACTIVITIES WHICH ARE DIRECTED TOWARD
THE FOLLOWING SPECIFIC OBJECTIVES--,
(1) THE ELIMINATION OF SLUMS AND BLIGHT AND THE PREVENTION OF
BLIGHTING INFLUENCES AND THE DETERIORATION OF PROPERTY AND
NEIGHBORHOOD AND COMMUNITY FACILITIES OF IMPORTANCE TO THE WELFARE
OF THE COMMUNITY, PRINCIPALLY PERSONS OF LOW AND MODERATE INCOME;
(2) THE ELIMINATION OF CONDITIONS WHICH ARE DETRIMENTAL TO
HEALTH, SAFETY, AND PUBLIC WELFARE, THROUGH CODE ENFORCEMENT,
DEMOLITION, INTERIM REHABILITATION ASSISTANCE, AND RELATED
ACTIVITIES;
(3) THE CONSERVATION AND EXPANSION OF THE NATION'S HOUSING
STOCK IN ORDER TO PROVIDE A DECENT HOME AND A SUITABLE LIVING
ENVIRONMENT FOR ALL PERSONS, BUT PRINCIPALLY THOSE OF LOW AND
MODERATE INCOME;
(4) THE EXPANSION AND IMPROVEMENT OF THE QUANTITY AND QUALITY
OF COMMUNITY SERVICES, PRINCIPALLY FOR PERSONS OF LOW AND MODERATE
INCOME, WHICH ARE ESSENTIAL FOR SOUND COMMUNITY DEVELOPMENT AND
FOR THE DEVELOPMENT OF VIABLE URBAN COMMUNITIES;
(5) A MORE RATIONAL UTILIZATION OF LAND AND OTHER NATURAL
RESOURCES AND THE BETTER ARRANGEMENT OF RESIDENTIAL, COMMERCIAL,
INDUSTRIAL, RECREATIONAL, AND OTHER NEEDED ACTIVITY CENTERS;
(6) THE REDUCTION OF THE ISOLATION OF INCOME GROUPS WITHIN
COMMUNITIES AND GEOGRAPHICAL AREAS AND THE PROMOTION OF AN
INCREASE IN THE DIVERSITY AND VITALITY OF NEIGHBORHOODS THROUGH
THE SPATIAL DECONCENTRATION OF HOUSING OPPORTUNITIES FOR PERSONS
OF LOWER INCOME AND THE REVITALIZATION OF DETERIORATING OR
DETERIORATED NEIGHBORHOODS TO ATTRACT PERSONS OF HIGHER INCOME;
AND
(7) THE RESTORATION AND PRESERVATION OF PROPERTIES OF SPECIAL
VALUE FOR HISTORIC, ARCHITECTURAL, OR ESTHETIC REASONS.
IT IS INTENT OF CONGRESS THAT THE FEDERAL ASSISTANCE MADE AVAILABLE
UNDER THIS TITLE NOT BE UTILIZED TO REDUCE SUBSTANTIALLY THE AMOUNT OF
LOCAL FINANCIAL SUPPORT FOR COMMUNITY DEVELOPMENT ACTIVITIES BELOW THE
LEVEL OF SUCH SUPPORT PRIOR TO THE AVAILABILITY OF SUCH ASSISTANCE.
(D) IT IS ALSO THE PURPOSE OF THIS TITLE TO FURTHER THE DEVELOPMENT
OF A NATIONAL URBAN GROWTH POLICY BY CONSOLIDATING A NUMBER OF COMPLEX
AND OVERLAPPING PROGRAMS OF FINANCIAL ASSISTANCE TO COMMUNITIES OF
VARYING SIZES AND NEEDS INTO A CONSISTENT SYSTEM OF FEDERAL AID WHICH--,
(1) PROVIDES ASSISTANCE ON AN ANNUAL BASIS, WITH MAXIMUM
CERTAINTY AND MINIMUM DELAY, UPON WHICH COMMUNITIES CAN RELY IN
THEIR PLANNING;
(2) ENCOURAGES COMMUNITY DEVELOPMENT ACTIVITIES WHICH ARE
CONSISTENT WITH COMPREHENSIVE LOCAL AND AREAWIDE DEVELOPMENT
PLANNING;
(3) FURTHERS ACHIEVEMENT OF THE NATIONAL HOUSING GOAL OF A
DECENT HOME AND A SUITABLE LIVING ENVIRONMENT FOR EVERY AMERICAN
FAMILY; AND
(4) FOSTERS THE UNDERTAKING OF HOUSING AND COMMUNITY
DEVELOPMENT ACTIVITIES IN A COORDINATED AND MUTUALLY SUPPORTIVE
MANNER.
SEC. 102. (A) AS USED IN THIS TITLE--,
(1) THE TERM "UNIT OF GENERAL LOCAL GOVERNMENT" MEANS ANY CITY,
COUNTY, TOWN, TOWNSHIP, PARISH, VILLAGE, OR OTHER GENERAL PURPOSE
POLITICAL SUBDIVISION OF A STATE; GUAM, THE VIRGIN ISLANDS, AND
AMERICAN SAMOA, OR A GENERAL PURPOSE POLITICAL SUBDIVISION
THEREOF; A COMBINATION OF SUCH POLITICAL SUBDIVISIONS RECOGNIZED
BY THE SECRETARY; THE DISTRICT OF COLUMBIA; THE TRUST TERRITORY
OF THE PACIFIC ISLANDS; AND INDIAN TRIBES, BANDS, GROUPS, AND
NATIONS, INCLUDING ALASKA INDIANS, ALEUTS, AND ESKIMOS, OF THE
UNITED STATES. SUCH TERM ALSO INCLUDES A STATE OR A LOCAL PUBLIC
BODY OR AGENCY (AS DEFINED IN SECTION 711 OF THE HOUSING AND URBAN
DEVELOPMENT ACT OF 1970), //42 USC 4512.// COMMUNITY ASSOCIATION,
OR OTHER ENTITY, WHICH IS APPROVED BY THE SECRETARY FOR THE
PURPOSE OF PROVIDING PUBLIC FACILITIES OR SERVICES TO A NEW
COMMUNITY AS PART OF A PROGRAM MEETING THE ELIGIBILITY STANDARDS
OF SECTION 712 OF THE HOUSING AND URBAN DEVELOPMENT ACT OF 1970
//42 USC 4513.// OR TITLE IV OF THE HOUSING AND URBAN DEVELOPMENT
ACT OF 1968. //42 USC 3901 NOTE.//
(2) THE TERM "STATE" MEANS ANY STATE OF THE UNITED STATES, OR
ANY INSTRUMENTALITY THEREOF APPROVED BY THE GOVERNOR; AND THE
COMMONWEALTH OF PUERTO RICO.
(3) THE TERM "METROPOLITAN AREA" MEANS A STANDARD METROPOLITAN
STATISTICAL AREA AS ESTABLISHED BY THE OFFICE OF MANAGEMENT AND
BUDGET.
(4) THE TERM "METROPOLITAN CITY" MEANS (A) A CITY WITHIN A
METROPOLITAN AREA WHICH IS THE CENTRAL CITY OF SUCH AREA, AS
DEFINED AND USED BY THE OFFICE OF MANAGEMENT AND BUDGET, OR (B)
ANY OTHER CITY, WITHIN A METROPOLITAN AREA, WHICH HAS A POPULATION
OF FIFTY THOUSAND OR MORE.
(5) THE TERM "CITY" MEANS (A) ANY UNIT OF GENERAL LOCAL
GOVERNMENT WHICH IS CLASSIFIED AS A MUNICIPALITY BY THE UNITED
STATES BUREAU OF THE CENSUS OR (B) ANY OTHER UNIT OF GENERAL LOCAL
GOVERNMENT WHICH IS A TOWN OR TOWNSHIP AND WHICH, IN THE
DETERMINATION OF THE SECRETARY, (I) POSSESSES POWERS AND PERFORMS
FUNCTIONS COMPARABLE TO THOSE ASSOCIATED WITH MUNICIPALITIES, (II)
IS CLOSELY SETTLED, AND (III) CONTAINS WITHIN ITS BOUNDARIES NO
INCORPORATED PLACES AS DEFINED BY THE UNITED STATES BUREAU OF THE
CENSUS.
(6) THE TERM "URBAN COUNTY" MEANS ANY COUNTY WITHIN A
METROPOLITAN AREA WHICH (A) IS AUTHORIZED UNDER STATE LAW TO
UNDERTAKE ESSENTIAL COMMUNITY DEVELOPMENT AND HOUSING ASSISTANCE
ACTIVITIES IN ITS UNINCORPORATED AREAS, IF ANY, WHICH ARE NOT
UNITS OF GENERAL LOCAL GOVERNMENT, AND (B) HAS A COMBINED
POPULATION OF TWO HUNDRED THOUSAND OR MORE (EXCLUDING THE
POPULATION OF METROPOLITAN CITIES THEREIN) IN SUCH UNINCORPORATED
AREAS AND IN ITS INCLUDED UNITS OF GENERAL LOCAL GOVERNMENT (I) IN
WHICH IT HAS AUTHORITY TO UNDERTAKE ESSENTIAL COMMUNITY
DEVELOPMENT AND HOUSING ASSISTANCE ACTIVITIES AND WHICH DO NOT
ELECT TO HAVE THEIR POPULATION EXCLUDED OR (II) WITH WHICH IT HAS
ENTERED INTO COOPERATION AGREEMENTS TO UNDERTAKE OR TO ASSIST IN
THE UNDERTAKING OF ESSENTIAL COMMUNITY DEVELOPMENT AND HOUSING
ASSISTANCE ACTIVITIES.
(7) THE TERM "POPULATION" MEANS TOTAL RESIDENT POPULATION BASED
ON DATA COMPILED BY THE UNITED STATES BUREAU OF THE CENSUS AND
REFERABLE TO THE SAME POINT OR PERIOD IN TIME.
(8) THE TERM "EXTENT OF POVERTY" MEANS THE NUMBER OF PERSONS
WHOSE INCOMES ARE BELOW THE POVERTY LEVEL. POVERTY LEVELS SHALL
BE DETERMINED BY THE SECRETARY PURSUANT TO CRITERIA PROVIDED BY
THE OFFICE OF MANAGEMENT AND BUDGET, TAKING INTO ACCOUNT AND
MAKING ADJUSTMENT, IF FEASIBLE AND APPROPRIATE AND IN THE SOLE
DISCRETION OF THE SECRETARY, FOR REGIONAL OR AREA VARIATIONS IN
INCOME AND COST OF LIVING, AND SHALL BE BASED ON DATA REFERABLE TO
THE SAME POINT OR PERIOD IN TIME.
(9) THE TERM "EXTENT OF HOUSING OVERCROWDING" MEANS THE NUMBER
OF HOUSING UNITS WITH 1.01 OR MORE PERSONS PER ROOM BASED ON DATA
COMPILED BY THE UNITED STATES BUREAU OF THE CENSUS AND REFERABLE
TO THE SAME POINT OR PERIOD IN TIME.
(10) THE TERM "FEDERAL GRANT-IN-AID PROGRAM" MEANS A PROGRAM OF
FEDERAL FINANCIAL ASSISTANCE OTHER THAN LOANS AND OTHER THAN THE
ASSISTANCE PROVIDED BY THIS TITLE.
(11) THE TERM "PROGRAM PERIOD" MEANS THE PERIOD BEGINNING
JANUARY 1, 1975, AND ENDING JUNE 30, 1975, AND THE PERIOD COVERING
EACH FISCAL YEAR THEREAFTER.
(12) THE TERM "COMMUNITY DEVELOPMENT PROGRAM" MEANS A PROGRAM
DESCRIBED IN SECTION 104(A)(2). //POST, P. 638.//
(13) THE TERM "SECRETARY" MEANS THE SECRETARY OF HOUSING AND
URBAN DEVELOPMENT.
(B) WHERE APPROPRIATE, THE DEFINITIONS IN SUBSECTION (A) SHALL BE
BASED, WITH RESPECT TO ANY FISCAL YEAR, ON THE MOST RECENT DATA COMPILED
BY THE UNITED STATES BUREAU OF THE CENSUS AND THE LATEST PUBLISHED
REPORTS OF THE OFFICE OF MANAGEMENT AND BUDGET AVAILABLE NINETY DAYS
PRIOR TO THE BEGINNING OF SUCH FISCAL YEAR. THE SECRETARY MAY BY
REGULATION CHANGE OR OTHERWISE MODIFY THE MEANING OF THE TERMS DEFINED
IN SUBSECTION (A) IN ORDER TO REFLECT ANY TECHNICAL CHANGE OR
MODIFICATION THEREOF MADE SUBSEQUENT TO SUCH DATE BY THE UNITED STATES
BUREAU OF THE CENSUS OR THE OFFICE OF MANAGEMENT AND BUDGET.
(C) ONE OR MORE PUBLIC AGENCIES, INCLUDING EXISTING LOCAL PUBLIC
AGENCIES, MAY BE DESIGNATED BY THE CHIEF EXECUTIVE OFFICER OF A STATE OR
A UNIT OF GENERAL LOCAL GOVERNMENT TO UNDERTAKE A COMMUNITY DEVELOPMENT
PROGRAM IN WHOLE OR IN PART.
SEC. 103. (A)(1) THE SECRETARY IS AUTHORIZED TO MAKE GRANTS TO
STATES AND UNITS OF GENERAL LOCAL GOVERNMENT TO HELP FINANCE COMMUNITY
DEVELOPMENT PROGRAMS APPROVED IN ACCORDANCE WITH THE PROVISIONS OF THIS
TITLE. THE SECRETARY IS AUTHORIZED TO INCUR OBLIGATIONS ON BEHALF OF
THE UNITED STATES IN THE FORM OF GRANT AGREEMENTS OR OTHERWISE IN
AMOUNTS AGGREGATING SUCH SUM, NOT TO EXCEED $8,400,000,000, AS MAY BE
APPROVED IN AN APPROPRIATION ACT. THE AMOUNT SO APPROVED SHALL BECOME
AVAILABLE FOR OBLIGATION ON JANUARY 1, 1975, AND SHALL REMAIN AVAILABLE
UNTIL OBLIGATED. THERE ARE AUTHORIZED TO BE APPROPRIATED FOR
LIQUIDATION OF THE OBLIGATIONS INCURRED UNDER THIS SUBSECTION NOT TO
EXCEED $2,500,000,000 PRIOR TO THE CLOSE OF THE FISCAL YEAR 1975, WHICH
AMOUNT MAY BE INCREASED TO NOT TO EXCEED AN AGGREGATE OF $5,450,000,000
PRIOR TO THE CLOSE OF THE FISCAL YEAR 1976, AND TO NOT TO EXCEED AN
AGGREGATE OF $8,400,000,000 PRIOR TO THE CLOSE OF THE FISCAL YEAR 1977.
SUBJECT TO THE LIMITATIONS CONTAINED IN THE PRECEDING SENTENCE,
APPROPRIATIONS FOR--,
(A) GRANTS UNDER TITLE VII OF THE HOUSING ACT OF 1961; //42
USC 1500.//
(B) GRANTS UNDER SECTIONS 702 AND 703 OF THE HOUSING AND URBAN
DEVELOPMENT ACT OF 1965; //42 USC 3102, 3103.// AND
(C) SUPPLEMENTAL GRANTS UNDER TITLE I OF THE DEMONSTRATION
CITIES AND METROPOLITAN DEVELOPMENT ACT OF 1966, //42 USC 3301.//
MAY BE USED, TO THE EXTENT NOT OTHERWISE OBLIGATED PRIOR TO JANUARY 1,
1975, FOR THE LIQUIDATION OF CONTRACTS ENTERED INTO PURSUANT TO THIS
SECTION.
(2) OF THE AMOUNTS APPROVED IN APPROPRIATION ACTS PURSUANT TO
PARAGRAPH (1), $50,000,000 FOR EACH OF THE FISCAL YEARS 1975 AND 1976
SHALL BE ADDED TO THE AMOUNT AVAILABLE FOR ALLOCATION UNDER SECTION
106(D) AND SHALL NOT BE SUBJECT TO THE PROVISIONS OF SECTION 107.
//POST, PP. 642, 647.//
(B) IN ADDITION TO THE AMOUNTS MADE AVAILABLE UNDER SUBSECTION (A),
AND FOR THE PURPOSE OF FACILITATING AN ORDERLY TRANSITION TO THE PROGRAM
AUTHORIZED UNDER THIS TITLE, THERE ARE AUTHORIZED TO BE APPROPRIATED NOT
TO EXCEED $50,000,000 FOR EACH OF THE FISCAL YEARS 1975 AND 1976, AND
NOT TO EXCEED $100,000,000 FOR THE FISCAL YEAR 1977, FOR GRANTS UNDER
THIS TITLE TO UNITS OF GENERAL LOCAL GOVERNMENT HAVING URGENT COMMUNITY
DEVELOPMENT NEEDS WHICH CANNOT BE MET THROUGH THE OPERATION OF THE
ALLOCATION PROVISIONS OF SECTION 106.
(C) SUMS APPROPRIATED PURSUANT TO THIS SECTION SHALL REMAIN AVAILABLE
UNTIL EXPENDED.
(D) TO ASSURE PROGRAM CONTINUITY AND ORDERLY PLANNING, THE SECRETARY
SHALL SUBMIT TO THE CONGRESS TIMELY REQUESTS FOR ADDITIONAL
AUTHORIZATIONS FOR THE FISCAL YEARS 1978 THROUGH 1980.
SEC. 104. (A) NO GRANT MAY BE MADE PURSUANT TO SECTION 106 UNLESS AN
APPLICATION SHALL HAVE BEEN SUBMITTED TO THE SECRETARY IN WHICH THE
APPLICANT--,
(1) SETS FORTH A SUMMARY OF A THREE-YEAR COMMUNITY DEVELOPMENT
PLAN WHICH IDENTIFIES COMMUNITY DEVLEOPMENT NEEDS, DEMONSTRATES A
COMPREHENSIVE STRATEGY FOR MEETING THOSE NEEDS, AND SPECIFIES BOTH
SHORT- AND LONG-TERM COMMUNITY DEVELOPMENT OBJECTIVES WHICH HAVE
BEEN DEVELOPED IN ACCORDANCE WITH AREAWIDE DEVELOPMENT PLANNING
AND NATIONAL URBAN GROWTH POLICIES;
(2) FORMULATES A PROGRAM WHICH (A) INCLUDES THE ACTIVITIES TO
BE UNDERTAKEN TO MEET ITS COMMUNITY DEVELOPMENT NEEDS AND
OBJECTIVES, TOGETHER WITH THE ESTIMATED COSTS AND GENERAL LOCATION
OF SUCH ACTIVITIES, (B) INDICATES RESOURCES OTHER THAN THOSE
PROVIDED UNDER THIS TITLE WHICH ARE EXPECTED TO BE MADE AVAILABLE
TOWARD MEETING ITS IDENTIFIED NEEDS AND OBJECTIVES, AND (C) TAKES
INTO ACCOUNT APPROPRIATE ENVIRONMENTAL FACTORS;
(A) ELIMINATE OR PREVENT SLUMS, BLIGHT, AND DETERIORATION WHERE
SUCH CONDITIONS OR NEEDS EXIST; AND
(B) PROVIDE IMPROVED COMMUNITY FACILITIES AND PUBLIC
IMPROVEMENTS, INCLUDING THE PROVISION OF SUPPORTING HEALTH,
SOCIAL, AND SIMILAR SERVICES WHERE NECESSARY AND APPROPRIATE;
(4) SUBMITS A HOUSING ASSISTANCE PLAN WHICH-,
(A) ACCURATELY SURVEYS THE CONDITION OF THE HOUSING STOCK IN
THE COMMUNITY AND ASSESSES THE HOUSING ASSISTANCE NEEDS OF
LOWER-INCOME PERSONS (INCLUDING ELDERLY AND HANDICAPPED PERSONS,
LARGE FAMILIES, AND PERSONS DISPLACED OR TO BE DIS- PLACED)
RESIDING IN OR EXPECTED TO RESIDE IN THE COMMUNITY,
(B) SPECIFIES A REALISTIC ANNUAL GOAL FOR THE NUMBER OF
DWELLING UNITS OR PERSONS TO BE ASSISTED, INCLUDING (I) THE RELA-
TIVE PROPORTION OF NEW, REHABILITATED, AND EXISTING DWELLING
UNITS, AND (II) THE SIZES AND TYPES OF HOUSING PROJECTS AND
ASSISTANCE BEST SUITED TO THE NEEDS OF LOWER-INCOME PERSONS IN THE
COMMUNITY, AND
(C) INDICATES THE GENERAL LOCATIONS OF PROPOSED HOUSING FOR
LOWER-INCOME PERSONS, WITH THE OBJECTIVE OF (I) FURTHERING THE
REVITILIZATION OF THE COMMUNITY, INCLUDING THE RESTORATION AND
REHABILITATION OF STABLE NEIGHBORHOODS TO THE MAXIMUM EXTENT
POSSIBLE, (II) PROMOTING GREATER CHOICE OF HOUSING OPPORTUNITIES
AND AVOIDING UNDUE CONCENTRATIONS OF ASSISTED PERSONS IN AREAS
CONTAINING A HIGH PROPORTION OF LOW-INCOME PERSONS, AND (III)
ASSURING THE AVAILABILITY OF PUBLIC FACILITIES AND SERVICES
ADEQUATE TO SERVE PROPOSED HOUSING PROJECTS;
(5) PROVIDES SATISFACTORY ASSURANCES THAT THE PROGRAM WILL BE
CONDUCTED AND ADMINISTERED IN CONFORMITY WITH PUBLIC LAW 88 - 352 //78
STAT. 241, 42 USC 200A NOTE.// AND PUBLIC LAW 90 - 284; //82 STAT. 73,
18 USC 245.// AND
(6) PROVIDES SATISFACTORY ASSURANCES THAT, PRIOR TO SUBMISSION OF ITS
APPLICATION, IT HAS (A) PROVIDED CITIZENS WITH ADEQUATE INFORMATION
CONCERNING THE AMOUNT OF FUNDS AVAILABLE FOR PROPOSED COMMUNITY
DEVELOPMENT AND HOUSING ACTIVITIES, THE RANGE OF ACTIVITIES TAHT MAY BE
UNDERTAKEN, AND OTHER IMPORTANT PROGRAM REQUIREMENTS, (B) HELD PUBLIC
HEARINGS TO OBTAIN THE VIEWS OF CITIZENS ON COMMUNITY DEVELOPMENT AND
HOUSING NEEDS, AND (C) PROVIDED CITIZENS AN ADEQUATE OPPORTUNITY TO
PARTICIPATE IN THE DEVELOPMENT OF THE APPLICATION; BUT NO PART OF THIS
PARAGRAPH SHALL BE CONSTRUED TO RESTRICT THE RESPONSIBILITY AND
AUTHORITY OF THE APPLICANT FOR THE DEVELOPMENT OF THE APPLICATION AND
THE EXECUTION OF ITS COMMUNITY DEVELOPMENT PROGRAM.
(B)(1) NOT MORE THAN 10 PER CENTUM OF THE ESTIMATED COSTS REFERRED TO
IN SUBSECTION (A)(2) WHICH ARE TO BE INCURRED DURING ANY CONTRACT PERIOD
MAY BE DESIGNATED FOR UNSPECIFIED LOCAL OPTION ACTIVITIES WHICH ARE
ELIGIBLE FOR ASSISTANCE UNDER SECTION 105(A) OR FOR A CONTINGENCY
ACCOUNT FOR ACTIVITIES DESIGNATED BY THE APPLICANT PURSUANT TO
SUBSECTION (A)(2).
(2) ANY GRANT UNDER THIS TITLE SHALL BE MADE ONLY ON CONDITION THAT
THE APPLICANT CERTIFY TO THE SATISFACTION OF THE SECRETARY THAT ITS
COMMUNITY DEVELOPMENT PROGRAM HAS BEEN DEVELOPED SO AS TO GIVE MAXIMUM
FEASIBLE PRIORITY TO ACTIVITIES WHICH WILL BENEFIT LOW- OR
MODERATE-INCOME FAMILIES OR AID IN THE PREVENTION OR ELIMINATION OF
SLUMS OR BLIGHT. THE SECRETARY MAY ALSO APPROVE AN APPLICATION
DESCRIBING ACTIVITIES WHICH THE APPLICANT CERTIFIES AND THE SECRETARY
DETERMINES ARE DESIGNED TO MEET OTHER COMMUNITY DEVELOPMENT NEEDS HAVING
A PARTICULAR URGENCY AS SPECIFICALLY DESCRIBED IN THE APPLICATION.
(3) THE SECRETARY MAY WAIVE ALL OR PART OF THE REQUIREMENTS CONTAINED
IN PARAGRAPHS (1), (2), AND (3) OF SUBSECTION (A) IF (A) THE APPLICATION
FOR ASSISTANCE IS IN BEHALF OF A LOCALITY HAVING A POPULATION OF LESS
THAN 25,000 ACCORDING TO THE MOST RECENT DATA COMPILED BY THE BUREAU OF
THE CENSUS WHICH IS LOCATED EITHER (I) OUTSIDE A STANDARD METROPOLITAN
STATISTICAL AREA, OR (II) INSIDE SUCH AN AREA BUT OUTSIDE AN "URBANIZED
AREA" AS DEFINED BY THE BUREAU OF THE CENSUS (OR AS SUCH DEFINITION IS
MODIFIED BY THE SECRETARY FOR PURPOSES OF THIS TITLE), (B) THE
APPLICATION RELATES TO THE FIRST COMMUNITY DEVELOPMENT ACTIVITY TO BE
CARRIED OUT BY SUCH LOCALITY WITH ASSISTANCE UNDER THIS TITLE, (C) THE
ASSISTANCE REQUESTED IS FOR A SINGLE DEVELOPMENT ACTIVITY UNDER THIS
TITLE OF A TYPE ELIGIBLE FOR ASSISTANCE UNDER TITLE VII OF THE HOUSING
ACT OF 1961 //42 USC 1500.// OR TITLE VII OF THE HOUSING AND URBAN
DEVELOPMENT ACT OF 1965, //42 USC 3101.// AND (D) THE SECRETARY
DETERMINES THAT, HAVING REGARD TO THE NATURE OF THE ACTIVITY TO BE
CARRIED OUT, SUCH WAIVER IS NOT INCONSISTENT WITH THE PURPOSES OF THIS
TITLE.
(4) THE SECRETARY MAY ACCEPT A CERTIFICATION FROM THE APPLICANT THAT
IT HAS COMPILED WITH THE REQUIREMENTS OF PARAGRAPHS (5) AND (6) OF
SUBSECTION (A).
(C) THE SECRETARY SHALL APPROVE AN APPLICATION FOR AN AMOUNT WHICH
DOES NOT EXCEED THE AMOUNT DETERMINED IN ACCORDANCE WITH SECTION 106(A)
UNLESS--,
(1) ON THE BASIS OF SIGNIFICANT FACTS AND DATA, GENERALLY
AVAILABLE AND PERTAINING TO COMMUNITY AND HOUSING NEEDS AND
OBJECTIVES, THE SECRETARY DETERMINES THAT THE APPLICANT'S
DESCRIPTION OF SUCH NEEDS AND OBJECTIVES IDENTIFIED BY THE
APPLICANT PURSUANT TO SUBSECTION (A); OR
(3) THE SECRETARY DETERMINES THAT THE APPLICATION DOES NOT
COMPLY WITH THE REQUIREMENTS OF THIS TITLE OR OTHER APPLICABLE LAW
OR PROPOSES ACTIVITIES WHICH ARE INELIGIBLE UNDER THIS TITLE.
(D) PRIOR TO THE BEGINNING OF FISCAL YEAR 1977 AND EACH FISCAL YEAR
THEREAFTER, EACH GRANTEE SHALL SUBMIT TO THE SECRETARY A PERFORMANCE
REPORT CONCERNING THE ACTIVITIES CARRIED OUT PURSUANT TO THIS TITLE,
TOGETHER WITH AN ASSESSMENT BY THE GRANTEE OF THE RELATIONSHIP OF THOSE
ACTIVITIES TO THE OBJECTIVES OF THIS TITLE AND THE NEEDS AND OBJECTIVES
IDENTIFIED IN THE GRANTEE'S STATEMENT SUBMITTED PURSUANT TO SUBSECTION
(A). THE SECRETARY SHALL, AT LEAST ON AN ANNUAL BASIS, MAKE SUCH
REVIEWS AND AUDITS AS MAY BE NECESSARY OR APPROPRIATE TO DETERMINE
WHETHER THE GRANTEE HAS CARRIED OUT A PROGRAM SUBSTANTIALLY AS DESCRIBED
IN ITS APPLICATION, WHETHER THAT PROGRAM CONFORMED TO THE REQUIREMENTS
OF THIS TITLE AND OTHER APPLICABLE LAWS, AND WHETHER THE APPLICANT HAS A
CONTINUING CAPACITY TO CARRY OUT IN A TIMELY MANNER THE APPROVED
COMMUNITY DEVELOPMENT PROGRAM. THE SECRETARY MAY MAKE APPROPRIATE
ADJUSTMENTS IN THE AMOUNT OF THE ANNUAL GRANTS IN ACCORDANCE WITH HIS
FINDINGS PURSUANT TO THIS SUBSECTION.
(E) NO GRANT MAY BE MADE UNDER THIS TITLE UNLESS THE APPLICATION
THEREFOR HAS BEEN SUBMITTED FOR REVIEW AND COMMENT TO AN AREAWIDE AGENCY
UNDER PROCEDURES ESTABLISHED BY THE PRESIDENT PURSUANT TO TITLE II OF
THE DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT OF 1966 //42
USC 3331.// AND TITLE IV OF THE INTERGOVERNMENTAL COOPERATION ACT OF
1968. //42 USC 4231.//
(F) AN APPLICATION SUBJECT TO SUBSECTION (C), IF SUBMITTED AFTER ANY
DATE ESTABLISHED BY THE SECRETARY FOR CONSIDERATION OF APPLICATIONS,
SHALL BE DEEMED APPROVED WITHIN 75 DAYS AFTER RECEIPT UNLESS THE
SECRETARY INFORMS THE APPLICANT OF SPECIFIC REASONS FOR DISAPPROVAL.
SUBSEQUENT TO APPROVAL OF THE APPLICATION, THE AMOUNT OF THE GRANT MAY
BE ADJUSTED IN ACCORDANCE WITH THE PROVISIONS OF THIS TITLE.
(G) INSOFAR AS THEY RELATE TO FUNDS PROVIDED UNDER THIS TITLE, THE
FINANCIAL TRANSACTIONS OF RECIPIENTS OF SUCH FUNDS MAY BE AUDITED BY THE
GENERAL ACCOUNTING OFFICE UNDER SUCH RULES AND REGULATIONS AS MAY BE
PRESCRIBED BY THE COMPTROLLER GENERAL OF THE UNITED STATES. THE
REPRESENTATIVES OF THE GENERAL ACCOUNTING OFFICE SHALL HAVE ACCESS TO
ALL BOOKS, ACCOUNTS, RECORDS, REPORTS, FILES, AND OTHER PAPERS, THINGS,
OR PROPERTY BELONGING TO OR IN USE BY SUCH RECIPIENTS PERTAINING TO SUCH
FINANCIAL TRANSACTIONS AND NECESSARY TO FACILITATE THE AUDIT.
(H)(1) IN ORDER TO ASSURE THAT THE POLICIES OF THE NATIONAL
ENVIRONMENTAL POLICY ACT OF 1969 //83 STAT. 852, 42 USC 4321 NOTE.// ARE
MOST EFFECTIVELY IMPLEMENTED IN CONNECTION WITH THE EXPENDITURE OF FUNDS
UNDER THIS TITLE, AND TO ASSURE TO THE PUBLIC UNDIMINISHED PROTECTION OF
THE ENVIRONMENT, THE SECRETARY, IN LIEU OF THE ENVIRONMENTAL PROTECTION
PROCEDURES OTHERWISE APPLICABLE, MAY UNDER REGULATIONS PROVIDE FOR THE
RELEASE OF FUNDS FOR PARTICULAR PROJECTS TO APPLICANTS WHO ASSUME ALL OF
THE RESPONSIBILITIES FOR ENVIRONMENTAL REVIEW, DECISIONMAKING, AND
ACTION PURSUANT TO SUCH ACT THAT WOULD APPLY TO THE SECRETARY WERE HE TO
UNDERTAKE SUCH PROJECTS AS FEDERAL PROJECTS. THE SECRETARY SHALL ISSUE
REGULATIONS TO CARRY OUT THIS SUBSECTION ONLY AFTER CONSULTATION WITH
THE COUNCIL ON ENVIRONMENTAL QUALITY.
(2) THE SECRETARY SHALL APPROVE THE RELEASE OF FUNDS FOR PROJECTS
SUBJECT TO THE PROCEDURES AUTHORIZED BY THIS SUBSECTION ONLY IF, AT
LEAST FIFTEEN DAYS PRIOR TO SUCH APPROVAL AND PRIOR TO ANY COMMITMENT OF
FUNDS TO SUCH PROJECTS OTHER THAN FOR PURPOSES AUTHORIZED BY SECTION
105(A)(12) //POST, P. 642.// OR FOR ENVIRONMENTAL STUDIES, THE APPLICANT
HAS SUBMITTED TO THE SECRETARY A REQUEST FOR SUCH RELEASE ACCOMPANIED BY
A CERTIFICATION WHICH MEETS THE REQUIREMENTS OF PARAGRAPH (3). THE
SECRETARY'S APPROVAL OF ANY SUCH CDERTIFICATION SHALL BE DEEMED TO
SATISFY HIS RESPONSIBILITIES UNDER THE NATIONAL ENVIRONMENTAL POLICY ACT
INSOFAR AS THOSE RESPONSIBILITIES RELATE TO THE APPLICATIONS AND
RELEASES OF FUNDS FOR PROJECTS TO BE CARRIED OUT PURSUANT THERETO WHICH
ARE COVERED BY SUCH CERTIFICATION.
(3) A CERTIFICATION UNDER THE PROCEDURES AUTHORIZED BY THIS
SUBSECTION SHALL--,
(A) BE IN A FORM ACCEPTABLE TO THE SECRETARY,
(B) BE EXECUTED BY THE CHIEF EXECUTIVE OFFICER OR OTHER OFFICER
OF THE APPLICANT QUALIFIED UNDER REGULATIONS OF THE SECRETARY,
(C) SPECIFY THAT THE APPLICANT HAS FULLY CARRIED OUT ITS
RESPONSIBILITIES AS DESCRIBED UNDER PARAGRAPH (1) OF THIS
SUBSECTION, AND
(D) SPECIFY THAT THE CERTIFYING OFFICER (I) CONSENTS TO ASSUME
THE STATUS OF A RESPONSIBLE FEDERAL OFFICIAL UNDER THE NATIONAL
ENVIRONMENTAL POLICY ACT OF 1969 //83 STAT. 852, 42 USC 4321
NOTE.// INSOFAR AS THE PROVISIONS OF SUCH ACT APPLY PURSUANT TO
PARAGRAPH (1) OF THIS SUBSECTION, AND (II) IS AUTHORIZED AND
CONSENTS ON BEHALF OF THE APPLICANT AND HIMSELF TO ACCEPT THE
JURISDICTION OF THE FEDERAL COURTS FOR THE PURPOSE OF ENFORCEMENT
OF HIS RESPONSIBILITIES AS SUCH AN OFFICIAL.
SEC. 105. (A) A COMMUNITY DEVELOPMENT PROGRAM ASSISTED UNDER THIS
TITLE MAY INCLUDE ONLY--,
(1) THE ACQUISITION OF REAL PROPERTY (INCLUDING AIR RIGHTS,
WATER RIGHTS, AND OTHER INTERESTS THEREIN) WHICH IS (A) BLIGHTED,
DETERIORATED, DETERIORATING, UNDEVELOPED, OR INAPPROPRIATELY
DEVELOPED FROM THE STANDPOINT OF SOUND COMMUNITY DEVELOPMENT AND
GROWTH; (B) APPROPRIATE FOR REHABILITATION OR CONSERVATION
ACTIVITIES; (C) APPROPRIATE FOR THE PRESERVATION OR RESTORATION
OF HISTORIC SITES, THE BEAUTIFICATION OF URBAN LAND, THE
CONSERVATION OF OPEN SPACES, NATURAL RESOURCES, AND SCENIC AREAS,
THE PROVISION OF RECREATIONAL OPPORTUNITIES, OR THE GUIDANCE OF
URBAN DEVELOPMENT; (D) TO BE USED FOR THE PROVISION OF PUBLIC
WORKS, FACILITIES, AND IMPROVEMENTS ELIGIBLE FOR ASSISTANCE UNDER
THIS TITLE; OR (E) TO BE USED FOR OTHER PUBLIC PURPOSES;
(2) THE ACQUISITION, CONSTRUCTION, RECONSTRUCTION, OR
INSTALLATION OF PUBLIC WORKS, FACILITIES, AND SITE OR OTHER
IMPROVEMENTS--, INCLUDING NEIGHBORHOOD FACILITIES, SENIOR CENTERS,
HISTORIC PROPERTIES, UTILITIES, STREETS, STREET LIGHTS, WATER AND
SEWER FACILITIES, FOUNDATIONS AND PLATFORMS FOR AIR RIGHTS SITES,
PEDESTRIAN MALLS AND WALKWAYS, AND PARKS, PLAYGROUNDS, AND
RECREATION FACILITIES, FLOOD AND DRAINAGE FACILITIES IN CASES
WHERE ASSISTANCE FOR SUCH FACILITIES UNDER OTHER FEDERAL LAWS OR
PROGRAMS IS DETERMINED TO BE UNAVAILABLE, AND PARKING FACILITIES,
SOLID WASTE DISPOSAL FACILITIES, AND FIRE PROTECTION SERVICES AND
FACILITIES WHICH ARE LOCATED IN OR WHICH SERVE DESIGNATED
COMMUNITY DEVELOPMENT AREAS;
(3) CODE ENFORCEMENT IN DETERIORATED OR DETERIORATING AREAS IN
WHICH SUCH ENFORCEMENT, TOGETHER WITH PUBLIC IMPROVEMENTS AND
SERVICES TO BE PROVIDED, MAY BE EXPECTED TO ARREST THE DECLINE OF
THE AREA;
(4) CLEARANCE, DEMOLITION, REMOVAL, AND REHABILITATION OF
BUILDINGS AND IMPROVEMENTS (INCLUDING INTERIM ASSISTANCE AND
FINANCING REHABILITATION OF PRIVATELY OWNED PROPERTIES WHEN
INCIDENTAL TO OTHER ACTIVITIES);
(5) SPECIAL PROJECTS DIRECTED TO THE REMOVAL OF MATERIAL AND
ARCHITECTURAL BARRIERS WHICH RESTRICT THE MOBILITY AND
ACCESSIBILITY OF ELDERLY AND HANDICAPPED PERSONS;
(6) PAYMENTS TO HOUSING OWNERS FOR LOSSES OF RENTAL INCOME
INCURRED IN HOLDING FOR TEMPORARY PERIODS HOUSING UNITS TO BE
UTILIZED FOR THE RELOCATION OF INDIVIDUALS AND FAMILIES DISPLACED
BY PROGRAM ACTIVITIES UNDER THIS TITLE;
(7) DISPOSITION (THROUGH SALE, LEASE, DONATION, OR OTHERWISE)
OF ANY REAL PROPERTY ACQUIRED PURSUANT TO THIS TITLE OR ITS
RETENTION FOR PUBLIC PURPOSES;
(8) PROVISION OF PUBLIC SERVICES NOT OTHERWISE AVAILABLE IN
AREAS WHERE OTHER ACTIVITIES ASSISTED UNDER THIS TITLE ARE BEING
CARRIED OUT IN A CONCENTRATED MANNER, IF SUCH SERVICES ARE
DETERMINED TO BE NECESSARY OR APPROPRIATE TO SUPPORT SUCH OTHER
ACTIVITIES AND IF ASSISTANCE IN PROVIDING OR SECURING SUCH
SERVICES UNDER OTHER APPLICABLE FEDERAL LAWS OR PROGRAMS HAS BEEN
APPLIED FOR AND DENIED OR NOT MADE AVAILABLE WITHIN A REASONABLE
PERIOD OF TIME, AND IF SUCH SERVICES ARE DIRECTED TOWARD (A)
IMPROVING THE COMMUNITY'S PUBLIC SERVICES AND FACILITIES,
INCLUDING THOSE CONCERNED WITH THE EMPLOYMENT, ECONOMIC
DEVELOPMENT, CRIME PREVENTION, CHILD CARE, HEALTH, DRUG ABUSE,
EDUCATION, WELFARE, OR RECREATION NEEDS OF PERSONS RESIDING IN
SUCH AREAS, AND (B) COORDINATING PUBLIC AND PRIVATE DEVELOPMENT
PROGRAMS;
(9) PAYMENT OF THE NON-FEDERAL SHARE REQUIRED IN CONNECTION
WITH A FEDERAL GRANT-IN-AID PROGRAM UNDERTAKEN AS PART OF THE
COMMUNITY DEVELOPMENT PROGRAM;
(10) PAYMENT OF THE COST OF COMPLETING A PROJECT FUNDED UNDER
TITLE I OF THE HOUSING ACT OF 1949; //42 USC 1441 NOTE.//
(11) RELOCATION PAYMENTS AND ASSISTANCE FOR INDIVIDUALS,
FAMILIES, BUSINESSES, ORGANIZATIONS, AND FARM OPERATIONS DISPLACED
BY ACTIVITIES ASSISTED UNDER THIS TITLE;
(12) ACTIVITIES NECESSARY (A) TO DEVELOP A COMPREHENSIVE
COMMUNITY DEVELOPMENT PLAN, AND (B) TO DEVELOP A
POLICY-PLANNING-MANAGEMENT CAPACITY SO THAT THE RECIPIENT OF
ASSISTANCE UNDER THIS TITLE MAY MORE RATIONALLY AND EFFECTIVELY
(I) DETERMINE ITS NEEDS, (II) SET LONG-TERM GOALS AND SHORT-TERM
OBJECTIVES, (III) DEVISE PROGRAMS AND ACTIVITIES TO MEET THESE
GOALS AND OBJECTIVES, (IV) EVALUATE THE PROGRESS OF SUCH PROGRAMS
IN ACCOMPLISHING THESE GOALS AND OBJECTIVES, AND (V) CARRY OUT
MANAGEMENT, COORDINATION, AND MONITORING OF ACTIVITIES NECESSARY
FOR EFFECTIVE PLANNING IMPLEMENTATION; AND
(13) PAYMENT OF REASONABLE ADMINISTRATIVE COST AND CARRYING
CHARGES RELATED TO THE PLANNING AND EXECUTION OF COMMUNITY
DEVELOPMENT AND HOUSING ACTIVITIES, INCLUDING THE PROVISION OF
INFORMATION AND RESOURCES TO RESIDENTS OF AREAS IN WHICH COMMUNITY
DEVELOPMENT AND HOUSING ACTIVITIES ARE TO BE CONCENTRATED WITH
RESPECT TO THE PLANNING AND EXECUTION OF SUCH ACTIVITIES.
(B) UPON THE REQUEST OF THE RECIPIENT OF A GRANT UNDER THIS TITLE,
THE SECRETARY MAY AGREE TO PERFORM ADMINISTRATIVE SERVICES ON A
REIMBURSABLE BASIS ON BEHALF OF SUCH RECIPIENT IN CONNECTION WITH LOANS
OR GRANTS FOR THE REHABILITATION OF PROPERTIES AS AUTHORIZED UNDER
SUBSECTION (A)(4).
SEC. 106. (A) OF THE AMOUNT APPROVED IN AN APPROPRIATION ACT UNDER
SECTION 103(A) //ANTE, P. 637.// FOR GRANTS IN ANY YEAR (EXCLUDING THE
AMOUNT PROVIDED FOR USE IN ACCORDANCE WITH SECTIONS 103(A)(2) AND 107),
//POST, P. 647.// 80 PER CENTUM SHALL BE ALLOCATED BY THE SECRETARY TO
METROPOLITAN AREAS. EXCEPT AS PROVIDED IN SUBSECTIONS (C) AND (E), EACH
METROPOLITAN CITY AND URBAN COUNTY SHALL, SUBJECT TO THE PROVISIONS OF
SECTION 104 //ANTE, P. 638.// AND EXCEPT AS OTHERWISE SPECIFICALLY
AUTHORIZED, BE ENTITLED TO ANNUAL GRANTS FROM SUCH ALLOCATION IN AN
AGGREGATE AMOUNT NOT EXCEEDING THE GREATER OF ITS BASIC AMOUNT COMPUTED
PURSUANT TO PARAGRAPH (2) OR (3) OF SUBSECTION (B) OR ITS HOLD-HARMLESS
AMOUNT COMPUTED PURSUANT TO SUBSECTION (G).
(B)(1) THE SECRETARY SHALL DETERMINE THE AMOUNT TO BE ALLOCATED TO
ALL METROPOLITAN CITIES WHICH SHALL BE AN AMOUNT THAT BEARS THE SAME
RATIO TO THE ALLOCATION FOR ALL METROPOLITAN AREAS AS THE AVERAGE OF THE
RATIOS BETWEEN--,
(A) THE POPULATION OF ALL METROPOLITAN CITIES AND THE
POPULATION OF ALL METROPOLITAN AREAS;
(B) THE EXTENT OF POVERTY IN ALL METROPOLITAN CITIES AND THE
EXTENT OF POVERTY IN ALL METROPOLITAN AREAS; AND
(C) THE EXTENT OF HOUSING OVERCROWDING IN ALL METROPOLITAN
CITIES AND THE EXTENT OF HOUSING OVERCROWDING IN ALL METROPOLITAN
AREAS.
(2) FROM THE AMOUNT ALLOCATED TO ALL METROPOLITAN CITIES THE
SECRETARY SHALL DETERMINE FOR EACH METROPOLITAN CITY A BASIC GRANT
AMOUNT WHICH SHALL EQUAL AN AMOUNT THAT BEARS THE SAME RATIO TO THE
ALLOCATION FOR ALL METROPOLITAN CITIES AS THE AVERAGE OF THE RATIOS
BETWEEN--,
(A) THE POPULATION OF THAT CITY AND THE POPULATION OF ALL
METROPOLITAN CITIES;
(B) THE EXTENT OF POVERTY IN THAT CITY AND THE EXTENT OF
POVERTY IN ALL METROPOLITAN CITIES; AND
(C) THE EXTENT OF HOUSING OVERCROWDING IN THAT CITY AND THE
EXTENT OF HOUSING OVERCROWDING IN ALL METROPOLITAN CITIES.
(3) THE SECRETARY SHALL DETERMINE THE BASIC GRANT AMOUNT OF EACH
URBAN COUNTY BY--
(A) CALCULATING THE TOTAL AMOUNT THAT WOULD HAVE BEEN ALLOCATED
TO METROPOLITAN CITIES AND URBAN COUNTIES TOGETHER UNDER PARAGRAPH
(1) OF THIS SUBSECTION IF DATA PERTAINING TO THE POPULATION,
EXTENT OF POVERTY, AND EXTENT OF HOUSING OVERCROWDING IN ALL URBAN
COUNTIES WERE INCLUDED IN THE NUMERATOR OF EACH OF THE FRACTIONS
DESCRIBED IN SUCH PARAGRAPH; AND
(B) DETERMINING FOR EACH COUNTY THE AMOUNT WHICH BEARS THE SAME
RATIO TO THE TOTAL AMOUNT CALCULATED UNDER SUPARAGRAPH (A) OF THIS
PARAGRAPH AS THE AVERAGE OF THE RATIOS BETWEEN--,
(I) THE POPULATION OF THAT URBAN COUNTY AND THE POPULATION OF
ALL METROPOLITAN CITIES AND URBAN COUNTIES;
(II) THE EXTENT OF POVERTY IN THAT URBAN COUNTY AND THE EXTENT
OF POVERTY IN ALL METROPOLITAN CITIES AND URBAN COUNTIES; AND
(III) THE EXTENT OF HOUSING OVERCROWDING IN THAT URBAN COUNTY
AND THE EXTENT OF HOUSING OVERCROWDINGS IN ALL METROPOLITAN CITIES
AND URBAN COUNTIES.
(4) IN DETERMINING THE AVERAGE OF RATIOS UNDER PARAGRAPHS (1), (2),
AND (3), THE RATIO INVOLVING THE EXTENT OF POVERTY SHALL BE COUNTED
TWICE.
(5) IN COMPUTING AMOUNTS OR EXCLUSIONS UNDER THIS SECTION WITH
RESPECT TO ANY URBAN COUNTY THERE SHALL BE EXCLUDED UNITS OF GENERAL
LOCAL GOVERNMENT LOCATED IN THE COUNTY (A) WHICH RECEIVE HOLD-HARMLESS
GRANTS PURSUANT TO SUBSECTION (H), OR (B) THE POPULATIONS OF WHICH ARE
NOT COUNTED IN DETERMINING THE ELIGIBILITY OF THE URBAN COUNTY TO
RECEIVE A GRANT UNDER THIS SUBSECTION.
(C) DURING THE FIRST THREE YEARS FOR WHICH FUNDS ARE APPROVED FOR
DISTRIBUTION TO A METROPOLITAN CITY OR URBAN COUNTY UNDER THIS SECTION,
THE BASIC GRANT AMOUNT OF SUCH CITY OR COUNTY AS COMPUTED UNDER
SUBSECTION (B) SHALL BE ADJUSTED AS PROVIDED IN THIS SUBSECTION IF THE
AMOUNT SO COMPUTED FOR THE FIRST SUCH YEAR EXCEEDS THE CITY'S OR
COUNTY'S HOLD-HARMLESS AMOUNT AS DETERMINED UNDER SUBSECTION (G). SUCH
ADJUSTMENT SHALL BE MADE SO THAT--,
(1) THE AMOUNT FOR THE FIRST YEAR DOES NOT EXCEED ONE-THIRD OF
THE FULL BASIC GRANT AMOUNT COMPUTED UNDER SUBSECTION (B), OR THE
HOLD-HARMLESS AMOUNT, WHICHEVER IS THE GREATER.
(2) THE AMOUNT FOR THE SECOND YEAR DOES NOT EXCEED TWO-THIRDS
OF THE FULL BASIC GRANT AMOUNT COMPUTED UNDER SUBSECTION (B), OR
THE HOLD-HARMLESS AMOUNT, OR THE AMOUNT ALLOWED UNDER PARAGRAPH
(1) OF THIS SUBSECTION, WHICHEVER IS THE GREATEST, AND
(3) THE AMOUNT FOR THE THIRD YEAR DOES NOT EXCEED THE FULL
BASIC GRANT AMOUNT COMPUTED UNDER SUBSECTION (B).
(D) ANY PORTION OF THE AMOUNT ALLOCATED TO METROPOLITAN AREAS UNDER
THE FIRST SENTENCE OF SUBSECTION (A) WHICH REMAINS AFTER THE ALLOCATION
OF GRANTS TO METROPOLITAN CITIES AND URBAN COUNTIES IN ACCORDANCE WITH
SUBSECTIONS (B) AND (C) AND ANY AMOUNTS ADDED IN ACCORDANCE WITH THE
PROVISIONS OF SECTION 103(A)(2) SHALL BE ALLOCATED BY THE SECRETARY--,
(1) FIRST, FOR GRANTS TO METROPOLITAN CITIES, URBAN COUNTIES,
AND OTHER UNITS OF GENERAL LOCAL GOVERNMENT WITHIN METROPOLITAN
AREAS TO MEET THEIR HOLD-HARMLESS NEEDS AS DETERMINED UNDER
SUBSECTIONS (G) AND (H); AND
(2) SECOND, FOR GRANTS TO UNITS OF GENERAL LOCAL GOVERNMENT
OTHER THAN METROPOLITAN CITIES AND URBAN COUNTIES) AND STATES FOR
USE IN METROPOLITAN AREAS, ALLOCATING FOR EACH SUCH METROPOLITAN
AREA AN AMOUNT WHICH BEARS THE SAME RATIO TO THE ALLOCATION FOR
ALL METROPOLITAN AREAS AVAILABLE UNDER THIS PARAGRAPH AS THE
(A) THE POPULATION OF THAT METROPOLITAN AREA AND THE POP-
ULATION OF ALL METROPOLITAN AREAS, EXTENT OF POVERTY IN ALL
METROPOLITAN AREAS, AND
(B) THE EXTENT OF POVERTY IN THAT METROPOLITAN AREA AND THE
(C) THE EXTENT OF HOUSING OVERCROWDING IN THAT METROPOLITAN
AREA AND THE EXTENT OF HOUSING OVERCROWDING IN ALL METROPOLITAN
AREAS.
IN DETERMINING THE AVERAGE OF RATIOS UNDER PARAGRAPH (2), THE RATIO
INVOLVING THE EXTENT OF POVERTY SHALL BE COUNTED TWICE; AND IN
COMPUTING AMOUNTS UNDER SUCH PRAGRAPH THERE SHALL BE EXCLUDED ANY
METROPOLITAN CITIES, URBAN COUNTIES, AND UNITS OF GENERAL LOCAL
GOVERNMENT WHICH RECEIVE HOLD-HARMLESS GRANTS PURSUANT TO SUBSECTION
(H).
(E) ANY AMOUNTS ALLOCATED TO A METROPOLITAN CITY OR URBAN COUNTY
PURSUANT TO THE PRECEDING PROVISIONS OF THIS SECTION WHICH ARE NOT
APPLIED FOR DURING A PROGRAM PERIOD OR WHICH ARE NOT APPROVED BY THE
SECRETARY, AND ANY OTHER AMOUNTS ALLOCATED TO A METROPOLITAN AREA WHICH
THE SECRETARY DETERMINES, ON THE BASIS OF THE APPLICATIONS AND OTHER
EVIDENCE AVAILABLE, ARE NOT LIKELY TO BE FULLY OBLIGATED DURING SUCH
PROGRAM PERIOD, SHALL BE REALLOCATED DURING THE SAME PERIOD FOR USE BY
STATES, METROPOLITAN CITIES, URBAN COUNTIES, OR UNITS OF GENERAL LOCAL
GOVERNMENT, FIRST, IN ANY METROPOLITAN AREA IN THE SAME STATE, AND
SECOND, IN ANY OTHER METROPOLITAN AREA. THE SECRETARY SHALL REVIEW
DETERMINATIONS UNDER THIS SUBSECTION FROM TIME TO TIME AS APPROPRIATE
WITH A VIEW OF ASSURING MAXIMUM USE OF ALL AVAILABLE FUNDS IN THE PERIOD
FOR WHICH SUCH FUNDS WERE APPROPRIATED.
(F)(1) OF THE AMOUNT APPROVED IN AN APPROPRIATION ACT UNDER SECTION
103(A) FOR GRANTS IN ANY YEAR (EXCLUDING THE AMOUNT PROVIDED FOR USE IN
ACCORDANCE WITH SECTIONS 103(A)(2) AND 107), 20 PER CENTUM SHALL BE
ALLOCATED BY THE SECRETARY--,
(A) FIRST, FOR GRANTS TO UNITS OF GENERAL LOCAL GOVERNMENT
OUTSIDE OF METROPOLITAN AREAS TO MEET THEIR HOLD-HARMLESS NEEDS AS
DETERMINED UNDER SUBSECTION (H); AND
(B) SECOND, FOR GRANTS TO UNITS OF GENERAL LOCAL GOVERNMENT
OUTSIDE OF METROPOLITAN AREAS AND STATES FOR USE OUTSIDE OF
METROPOLITAN AREAS, ALLOCATING FOR THE NONMETROPOLITAN AREAS OF
EACH STATE AN AMOUNT WHICH BEARS THE SAME RATIO TO THE ALLOCATION
AVAILABLE UNDER THIS SUBPARAGRAPH FOR THE NONMETROPOLITAN AREAS OF
ALL STATES AS THE AVERAGE OF THE RATIOS BETWEEN--,
(I) THE POPULATION OF THE NONMETROPOLITAN AREAS OF THAT STATE
AND THE POPULATION OF THE NONMETROPOLITAN AREAS OF ALL THE STATES,
(II) THE EXTENT OF POVERTY IN THE NONMETROPOLITAN AREAS OF THAT
STATE AND THE EXTENT OF POVERTY IN THE NONMETROPOLITAN AREAS OF
ALL THE STATES, AND
(III) THE EXTENT OF HOUSING OVERCROWDING IN THE NONMETRO-
POLITAN AREAS OF THAT STATE AND THE EXTENT OF HOUSING OVER-
CROWDING IN THE NONMETROPOLITAN AREAS OF ALL THE STATES.
IN DETERMINING THE AVERAGE OF RATIOS UNDER SUBPARAGRAPH (B), THE RATIO
INVOLVING THE EXTENT OF POVERTY SHALL BE COUNTED TWICE; AND IN
COMPUTING AMOUNTS UNDER SUCH SUBPARAGRAPH THERE SHALL BE EXCLUDED UNITS
OF GENERAL LOCAL GOVERNMENT WHICH RECEIVE HOLD-HARMLESS GRANTS PURSUANT
TO SUBSECTION (H).
(2) ANY AMOUNTS ALLOCATED TO A UNIT OF GENERAL LOCAL GOVERNMENT UNDER
PARAGRAPH (1) WHICH ARE NOT APPLIED FOR DURING A PROGRAM PERIOD OR WHICH
ARE NOT APPROVED BY THE SECRETARY, AND ANY AMOUNTS ALLOCATED TO THE
NONMETROPOLITAN AREAS OF A STATE UNDER PARAGRAPH (1)(B) WHICH THE
SECRETARY DETERMINES, ON THE BASIS OF APPLICATIONS AND OTHER EVIDENCE
AVAILABLE, ARE NOT LIKELY TO BE FULLY OBLIGATED DURING SUCH PERIOD,
SHALL BE REALLOCATED AS SOON AS PRACTICABLE DURING THE SAME PERIOD TO
THE NONMETROPOLITAN AREAS OF OTHER STATES. THE SECRETARY SHALL REVIEW
DETERMINATIONS UNDER THIS PARAGRAPH FROM TIME TO TIME WITH A VIEW TO
ASSURING MAXIMUM USE OF ALL AVAILABLE FUNDS IN THE PROGRAM PERIOD FOR
WHICH SUCH FUNDS WERE APPROPRIATED.
(G)(1) THE FULL HOLD-HARMLESS AMOUNT OF EACH METROPOLITAN CITY OR
URBAN COUNTY SHALL BE THE SUM OF (I) THE SUM OF THE AVERAGE DURING THE
FIVE FISCAL YEARS ENDING PRIOR TO JULY 1, 1972, OF (1) COMMITMENTS FOR
GRANTS (AS DETERMINED BY THE SECRETARY) PURSUANT TO PART A OF TITLE I OF
THE HOUSING ACT OF 1949; //42 USC 1450.// (2) LOANS PURSUANT TO SECTION
312 OF THE HOUSING ACT OF 1964; //42 USC 1452B.// (3) GRANTS PURSUANT
TO SECTIONS 702 AND 703 OT THE HOUSING AND URBAN DEVELOPMENT ACT OF
1965; //42 USC 3102, 3103.// (4) LOANS PURSUANT TO TITLE II OF THE
HOUSING AMENDMENTS OF 1955; //42 USC 1491.// AND (5) GRANTS PURSUANT TO
TITLE VII OF THE HOUSING ACT OF 1961; //42 USC 1500.// AND (II) THE
AVERAGE ANNUAL GRANT, AS DETERMINED BY THE SECRETARY, MADE IN ACCORDANCE
WITH PART B OF TITLE I OF THE HOUSING ACT OF 1949 //42 USC 1469.//
DURING THE FISCAL YEARS ENDING PRIOR TO JULY 1, 1972, OF DURING THE
FISCAL YEAR 1973 IN THE CASE OF A METROPOLITAN CITY OR URBAN COUNTY
WHICH FIRST RECEIVED A GRANT UNDER PART B OF SUCH TITLE IN SUCH FISCAL
YEAR. IN THE CASE OF A METROPOLITAN CITY OR URBAN COUNTY WHICH HAS
PARTICIPATED IN THE PROGRAM AUTHORIZED UNDER SECTION 105 OF THE
DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT OF 1966 //42 USC
3305.// AND WHICH HAS BEEN FUNDED OR EXTENDED IN THE FISCAL YEAR 1973
FOR A PERIOD ENDING AFTER JUNE 30, 1973, DETERMINATIONS OF THE
HOLD-HARMLESS AMOUNT OF SUCH METROPOLITAN CITY OR URBAN COUNTY FOR THE
FOLLOWING SPECIFIED YEARS SHALL BE MADE SO AS TO INCLUDE, IN ADDITION TO
THE AMOUNTS SPECIFIED IN CLAUSES (I) AND (II) OF THE PRECEDING SENTENCE,
THE FOLLOWING PERCENTAGES OF THE AVERAGE ANNUAL GRANT, AS DETERMINED BY
THE SECRETARY MADE IN ACCORDANCE WITH SUCH SECTION DURING FISCAL YEARS
ENDING PRIOR TO JULY 1, 1972--,
(A) 100 PER CENTUM FOR EACH OF A NUMBER OF YEARS WHICH, WHEN
ADDED TO THE NUMBER OF FUNDING YEARS FOR WHICH THE CITY OR COUNTY
RECEIVED GRANTS UNDER SUCH SECTION 105, EQUALS FIVE;
(B) 80 PER CENTUM FOR THE YEAR IMMEDIATELY FOLLOWING YEAR FIVE
AS DETERMINED PURSUANT TO CLAUSE (A),
(C) 60 PER CENTUM FOR THE YEAR IMMEDIATELY FOLLOWING THE YEAR
PROVIDED FOR IN CLAUSE (B); AND
(D) 40 PER CENTUM FOR THE YEAR IMMEDIATELY FOLLOWING THE YEAR
PROVIDED FOR IN CLAUSE (C).
FOR THE PURPOSES OF THIS PARAGRAPH THE AVERAGE ANNUAL GRANT UNDER PART B
OF TITLE I OF THE HOUSING ACT OF 1949 OR UNDER SECTION 105 OF THE
DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT OF 1966 SHALL BE
ESTABLISHED BY DIVIDING THE TOTAL AMOUNT OF GRANTS MADE TO A PARTICIPANT
UNDER THE PROGRAM BY THE NUMBER OF MONTHS OF PROGRAM ACTIVITY FOR WHICH
FUNDS WERE AUTHORIZED AND MULTIPLYING THE RESULT BY TWELVE.
(2) DURING THE FISCAL YEARS 1975, 1976, AND 1977, THE HOLD-HARMLESS
AMOUNT OF ANY METROPOLITAN CITY OR URBAN COUNTY SHALL BE THE FULL AMOUNT
COMPUTED FOR THE CITY OR COUNTY IN ACCORDANCE WITH PARAGRAPH (1). IN
THE FISCAL YEARS 1978, 1979, AND 1980, IF SUCH AMOUNT IS GREATER THAN
THE BASIC GRANT AMOUNT OF THE METROPOLITAN CITY OR URBAN COUNTY FOR THAT
YEAR, AS COMPUTED UNDER SUBSECTION (B)(2) OR (3), IT SHAL BE REDUCED SO
THAT--,
(I) IN THE FISCAL YEAR 1978, THE EXCESS OF THE HOLD-HARMLESS
AMOUNT OVER THE BASIC GRANT AMOUNT SHALL EQUAL TWO-THIRDS OF THE
DIFFERENCE BETWEEN THE AMOUNT COMPUTED UNDER PARAGRAPH (1) AND THE
BASIC GRANT AMOUNT FOR SUCH YEAR,
(II) IN THE FISCAL YEAR 1979, THE EXCESS OF THE HOLD-HARMLESS
AMOUNT OVER THE BASIC GRANT AMOUNT SHALL ONE-THIRD OF THE
DIFFERENCE BETWEEN THE AMOUNT COMPUTED UNDER PARAGRAPH (1) AND THE
BASIC GRANT AMOUNT FOR SUCH YEAR, AND
(III) IN THE FISCAL YEAR 1980, THERE SHALL BE NO EXCESS OF THE
HOLD-HARMLESS AMOUNT OVER THE BASIC GRANT AMOUNT.
(H)(1) ANY UNIT OF GENERAL LOCAL GOVERNMENT WHICH IS NOT A
METROPOLITAN CITY OR URBAN COUNTY SHALL, SUBJECT TO THE PROVISIONS OF
SECTION 104 AND EXCEPT AS OTHERWISE SPECIFICALLY AUTHORIZED, BE ENTITLED
TO GRANTS UNDER THIS TITLE FOR ANY YEAR IN AN AGGREGATE AMOUNT AT LEAST
EQUAL TO A HOLD-HARMLESS AMOUNT AS COMPUTED UNDER THE PROVISIONS OF
SUBSECTION (G)(1) IF, DURING THE FIVE-FISCAL-YEAR PERIOD SPECIFIED IN
THE FIRST SENTENCE OF SUBSECTION (G)(1) (OR DURING THE FISCAL YEAR 1973
IN THE CASE OF A LOCALITY WHICH FIRST RECEIVED A GRANT FOR A
NEIGHBORHOOD DEVELOPMENT PROGRAM IN THAT YEAR), ONE OR MORE URBAN
RENEWAL PROJECTS, CODE ENFORCEMENT PROGRAMS, NEIGHBORHOOD DEVLEOPMENT
PROGRAMS, OR MODEL CITIES PROGRAMS WERE BEING CARRIED OUT BY SUCH UNIT
OF GENERAL LOCAL GOVERNMENT PURSUANT TO COMMITMENTS FOR ASSISTANCE
ENTERED INTO DURING SUCH PERIOD UNDER TITLE I OF THE HOUSING ACT OF 1949
//42 USC 1450.// OR TITLE I OF THE DEMONSTRATION CITIES AND METROPOLITAN
DEVELOPMENT ACT OF 1966. //42 USC 3301.//
(2) IN THE FISCAL YEARS 1978, 1979, AND 1980, IN DETERMINING THE
HOLD-HARMLESS AMOUNT OF UNITS OF GENERAL LOCAL GOVERNMENT QUALIFYING
UNDER THIS SUBSECTION, THE SECOND SENTENCE OF SUBSECTION (G)(2) SHALL BE
APPLIED AS THOUGH SUCH UNITS WERE METROPOLITAN CITIES OR URBAN COUNTIES
WITH BASIC GRANT AMOUNTS OF ZERO.
(I) IN EXCLUDING THE POPULATION, POVERTY, AND HOUSING OVERCROWDING
DATA OF UNITS OF GENERAL LOCAL GOVERNEMTN WHICH RECEIVE A HOLD-HARMLESS
GRANT PURSUANT TO SUBSECTION (H) FROM THE COMPUTATIONS DESCRIBED IN
SUBSECTIONS (B)(5), (D), AND (F) OF THIS SECTION, THE SECRETARY SHALL
EXCLUDE ONLY TWO-THIRDS OF SUCH DATA FOR THE FISCAL YEAR 1978 AND
ONE-THIRD OF SUCH DATA FOR THE FISCAL YEAR 1979.
(J) ANY UNIT OF GENERAL LOCAL GOVERNMENT ELIGIBLE FOR A HOLD-HARMLESS
GRANT PURSUANT TO SUBSECTION (H) MAY, NOT LATER THAN THIRTY DAYS PRIOR
TO THE BEGINNING OF ANY PROGRAM PERIOD, IRREVOCABLY WAIVE ITS
ELIGIBILITY UNDER SUCH SUBSECTION. IN THE CASE OF SUCH A WAIVER THE
UNIT OF GENERAL LOCAL GOVERNMENT SHALL NOT BE EXCLUDED FROM THE
COMPUTATIONS DESCRIBED IN SUBSECTIONS (B)(5), (D), AND (F) OF THIS
SECTION.
(K) THE SECRETARY MAY FIX SUCH QUALIFICATION OR SUBMISSION DATES AS
HE DETERMINES ARE NECESSARY TO PERMIT THE COMPUTATIONS AND
DETERMINATIONS REQUIRED BY THIS SECTION TO BE MADE IN A TIMELY MANNER,
AND ALL SUCH COMPUTATIONS AND DETERMINATIONS SHALL BE FINAL AND
CONCLUSIVE.
(L) NOT LATER THAN MARCH 31, 1977, THE SECRETARY SHALL MAKE A REPORT
TO THE CONGRESS SETTING FORTH SUCH RECOMMENDATIONS AS HE DEEMS
ADVISABLE, IN FURTHERANCE OF THE PURPOSES AND POLICY OF THIS TITLE, FOR
MODIFYING OR EXPANDING THE PROVISIONS OF THIS SECTION RELATING TO THE
METHOD OF FUNDING AND THE ALLOCATION OF FUNDS AND THE DETERMINATION OF
THE BASIC GRANT ENTITLEMENT, AND FOR THE APPLICATION OF SUCH PROVISIONS
IN THE FURTHER DISTRIBUTION OF FUNDS UNDER THIS TITLE. IN MAKING THIS
REPORT, THE SECRETARY SHALL CONDUCT A STUDY TO DETERMINE HOW FUNDS
AUTHORIZED UNDER THIS TITLE CAN BE DISTRIBUTED IN ACCORDANCE WITH
COMMUNITY DEVELOPMENT NEEDS, OBJECTIVES, AND CAPACITIES, MEASURED TO THE
MAXIMUM EXTENT FEASIBLE BY OBJECTIVE STANDARDS.
SEC. 107. (A) OF THE TOTAL AMOUNT OF AUTHORITY TO ENTER INTO
CONTRACTS APPROVED IN APPROPRIATION ACTS UNDER SECTION 103(A)(1) FOR
EACH OF THE FISCAL YEARS 1975, 1976, AND 1977, AN AMOUNT EQUAL TO 2 PER
CENTUM THEREOF SHALL BE RESERVED AND SET ASIDE IN A SPECIAL
DISCRETIONARY FUND FOR USE BY THE SECRETARY IN MAKING GRANTS (IN
ADDITION TO ANY OTHER GRANTS WHICH MAY BE MADE UNDER THIS TITLE TO THE
SAME ENTITIES OR FOR THE PURPOSES)--,
(1) IN BEHALF OF NEW COMMUNITIES ASSISTED UNDER TITLE VII OF
THE HOUSING AND URBAN DEVELOPMENT ACT OF 1970 //42 USC 4501
NOTE.// OR TITLE IV OF THE HOUSING AND URBAN DEVELOPMENT ACT OF
1968; //42 USC 3901 NOTE.//
(2) TO STATES AND UNITS OF GENERAL LOCAL GOVERNMENT WHICH JOIN
IN CARRYING OUT HOUSING AND COMMUNITY DEVELOPMENT PROGRAMS THAT
ARE AREAWIDE IN SCOPE;
(3) IN GUAM, THE VIRGIN ISLANDS, AMERICAN SAMOA, AND THE TRUST
TERRITORY OF THE PACIFIC ISLANDS;
(4) TO STATES AND UNITS OF GENERAL LOCAL GOVERNMENT FOR THE
PURPOSE OF DEMONSTRATING INNOVATIVE COMMUNITY DEVELOPMENT
PROJECTS;
(5) TO STATES AND UNITS OF GENERAL LOCAL GOVERNMENT FOR THE
PURPOSE OF MEETING EMERGENCY COMMUNITY DEVELOPMENT NEEDS CAUSED BY
FEDERALLY RECOGNIZED DISASTERS; AND
(6) TO STATES AND UNITS OF GENERAL LOCAL GOVERNMENT WHERE THE
SECRETARY DEEMS IT NECESSARY TO CORRECT INEQUITIES RESULTING FROM
THE ALLOCATION PROVISIONS OF SECTION 106.
(B) NOT MORE THAN ONE-FOURTH OF THE TOTAL AMOUNT RESERVED AND SET
ASIDE IN THE SPECIAL DISCRETIONARY FUND UNDER SUBSECTION (A) FOR EACH
YEAR MAY BE USED FOR GRANTS TO MEET EMERGENCY DISASTER NEEDS UNDER
SUBSECTION (A)(5).
(C) AMOUNTS RESERVED AND SET ASIDE IN THE SPECIAL DISCRETIONARY FUND
UNDER SUBSECTION (A) IN ANY FISCAL YEAR BUT NOT USED IN SUCH YEAR SHALL
REMAIN AVAILABLE FOR USE IN ACCORDANCE WITH SUBSECTIONS (A) AND (B) IN
SUBSEQUENT FISCAL YEARS.
SEC. 108. (A) THE SECRETARY IS AUTHORIZED, UPON SUCH TERMS AND
CONDITIONS AS HE MAY PRESCRIBE, TO GUARANTEE AND MAKE COMMITMENTS TO
GUARANTEE THE NOTES OR OTHER OBLIGATIONS ISSUED BY UNITS OF GENERAL
LOCAL GOVERNMENT, OR BY PUBLIC AGENCIES DESIGNATED BY SUCH UNITS OF
GENERAL LOCAL GOVERNMENT, FOR THE PURPOSE OF FINANCING THE ACQUISITION
OR ASSEMBLY OF REAL PROPERTY (INCLUDING SUCH EXPENSES RELATED THERETO AS
THE SECRETARY MAY PERMIT BY REGULATION) TO SERVE OR BE USED IN CARRYING
OUT ACTIVITIES WHICH ARE ELIGIBLE FOR ASSISTANCE UNDER SECTION 105 AND
ARE IDENTIFIED IN THE APPLICATION UNDER SECTION 104, AND WITH RESPECT TO
WHICH GRANTS HAVE BEEN OR ARE TO BE MADE UNDER SECTION 103, BUT NO SUCH
GUARANTEE SHALL BE ISSUED IN BEHALF OF ANY AGENCY DESIGNED TO BENEFIT,
IN OR BY THE FLOTATION OF ANY ISSUE, A PRIVATE INDIVIDUAL OR
CORPORATION.
(B) NO GUARANTEE OR COMMITMENT TO GUARANTEE SHALL BE MADE WITH
RESPECT TO ANY UNIT OF GENERAL LOCAL GOVERNMENT OR PUBLIC AGENCY
DESIGNATED BY ANY SUCH UNIT OF GENERAL LOCAL GOVERNMENT UNLESS--,
(1) THE SECRETARY, FROM SUMS APPROVED IN APPROPRIATION ACTS AND
ALLOCATED FOR OBLIGATION TO THE UNIT OF GENERAL LOCAL GOVERNMENT
PURSUANT TO SECTIONS 106 AND 107, SHALL HAVE RESERVED AND
WITHHELD, FOR THE PURPOSE OF PAYING THE GUARANTEED OBLIGATIONS
(INCLUDING INTEREST), AN AMOUNT WHICH IS AT LEAST EQUAL TO 110 PER
CENTUM OF THE DIFFERENCE BETWEEN THE COST OF ACQUIRING THE LAND
AND RELATED EXPENSES AND THE ESTIMATED PROCEEDS TO BE DERIVED FROM
THE SALE OR OTHER DISPOSITION OF THE LAND, AS DETERMINED OR
APPROVED BY THE SECRETARY, WHICH AMOUNT MAY SUBSEQUENTLY BE
INCREASED BY THE SECRETARY TO THE EXTENT HE DETERMINES SUCH
INCREASE IS NECESSARY OR APPROPRIATE BECAUSE OF ANY UNANTICIPATED,
MAJOR REDUCTION IN SUCH ESTIMATED DISPOSITION PROCEEDS;
(2) THE UNIT OF GENERAL LOCAL GOVERNMENT SHALL HAVE GIVEN TO
THE SECRETARY, IN A FORM ACCEPTABLE TO HIM, A PLEDGE OF ITS FULL
FAITH AND CREDIT, OR A PLEDGE OF REVENUES APPROVED BY THE
SECRETARY, FOR THE REPAYMENT OF SO MUCH OF ANY AMOUNT REQUIRED TO
BE PAID BY THE UNITED STATES PURSUANT TO ANY GUARANTEE UNDER THIS
SECTION AS IS EQUAL TO THE DIFFERENCE BETWEEN THE PRINCIPAL AMOUNT
OF THE GUARANTEED OBLIGATIONS AND INTEREST THEREON AND THE AMOUNT
WHICH IS TO BE RESERVED AND WITHHELD UNDER PARAGRAPH (1); AND
(3) THE UNIT OF GENERAL LOCAL GOVERNMENT HAS PLEDGED TO THE
REPAYMENT OF ANY AMOUNTS WHICH ARE REQUIRED TO BE PAID BY THE
UNITED STATES PURSUANT TO ITS GUARANTEE UNDER THIS SECTION, AND
WHICH ARE NOT OTHERWISE FULLY REPAID WHEN DUE PURSUANT TO
PARAGRAPH (1) AND (2), THE PROCEEDS OF ANY GRANTS FOR WHICH SUCH
UNIT OF GENERAL LOCAL GOVERNMENT MAY BECOME ELIGIBLE UNDER THIS
TITLE.
(C) THE FULL FAITH AND CREDIT OF THE UNITED STATES IS PLEDGED TO THE
PAYMENT OF ALL GUARANTEES MADE UNDER THIS SECTION. ANY SUCH GUARANTEE
MADE BY THE SECRETARY SHALL BE CONCLUSIVE EVIDENCE OF THE ELIGIBILITY OF
THE OBLIGATIONS FOR SUCH GUARANTEE WITH RESPECT TO PRINCIPAL AND
INTEREST, AND THE VALIDITY OF ANY SUCH GUARANTEE SO MADE SHALL BE
INCONTESTABLE IN THE HANDS OF A HOLDER OF THE GUARANTEED OBLIGATIONS.
(D) THE SECRETARY MAY ISSUE OBLIGATIONS TO THE SECRETARY OF THE
TREASURY IN AN AMOUNT OUTSTANDING AT ANY ONE TIME SUFFICIENT TO ENABLE
THE SECRETARY TO CARRY OUT HIS OBLIGATIONS UNDER GUARANTEES AUTHORIZED
BY THIS SECTION. THE OBLIGATIONS ISSUED UNDER THIS SUBSECTION SHALL
HAVE SUCH MATURITIES AND BEAR SUCH RATE OR RATES OF INTEREST AS SHALL BE
DETERMINED BY THE SECRETARY OF THE TREASURY. THE SECRETARY OF THE
TREASURY IS AUTHORIZED AND DIRECTED TO PURCHASE ANY OBLIGATIONS OF THE
SECRETARY ISSUED UNDER THIS SECTION, AND FOR SUCH PURPOSES IS AUTHORIZED
TO USE AS A PUBLIC DEBT TRANSACTION THE PROCEEDS FROM THE SALE OF ANY
SECURITIES ISSUED UNDER THE SECOND LIBERTY BOND ACT, //40 STAT. 288, 31
USC 774.// AS NOW OR HEREAFTER IN FORCE, AND THE PURPOSES FOR WHICH SUCH
SECURITIES MAY BE ISSUED UNDER SUCH ACT ARE EXTENDED TO INCLUDE THE
PURCHASES OF THE SECRETARY'S OBLIGATIONS HEREUNDER.
(E) OBLIGATIONS GUARANTEED UNDER THIS SECTION MAY, AT THE OPTION OF
THE ISSUING UNIT OF GENERAL LOCAL GOVERNMENT OR DESIGNATED AGENCY, BE
SUBJECT TO FEDERAL TAXATION AS PROVIDED IN SUBSECTION (G). IN THE EVENT
THAT TAXABLE OBLIGATIONS ARE ISSUED AND GUARANTEED, THE SECRETARY IS
AUTHORIZED TO MAKE, AND TO CONTRACT TO MAKE, GRANTS TO OR ON BEHALF OF
THE ISSUING UNIT OF GENERAL LOCAL GOVERNMENT OR PUBLIC AGENCY TO COVER
NOT TO EXCEED 30 PER CENTUM OF THE NET INTEREST COST (INCLUDING SUCH
SERVICING, UNDERWRITING, OR OTHER COSTS AS MAY BE SPECIFIED IN
REGULATIONS OF THE SECRETARY) TO THE BORROWING UNIT OR AGENCY OF SUCH
OBLIGATIONS.
(F) SECTION 3689 OF THE REVISED STATUTES, AS AMENDED (31 U.S.C.
711), IS AMENDED BY ADDING AT THE END THEREOF A NEW PARAGRAPH AS
FOLLOWS:
"(22) FOR PAYMENTS REQUIRED FROM TIME TO TIME UNDER CONTRACTS ENTERED
INTO PURSUANT TO SECTION 108 OF THE HOUSING AND COMMUNITY DEVELOPMENT
ACT OF 1974 //ANTE, P. 647.// FOR PAYMENT OF INTEREST COSTS ON
OBLIGATIONS GUARANTEED BY THE SECRETARY OF HOUSING AND URBAN DEVELOPMENT
UNDER THAT SECTION." //42 USC 5308.//
(G) WITH RESPECT TO ANY OBLIGATION ISSUED BY A UNIT OF GENERAL LOCAL
GOVERNMENT OR DESIGNATED AGENCY WHICH SUCH UNIT OR AGENCY HAS ELECTED TO
ISSUE AS A TAXABLE OBLIGATION PURSUANT TO SUBSECTION (E) OF THIS
SECTION, THE INTEREST PAID ON SUCH OBLIGATION SHALL BE INCLUDED IN GROSS
INCOME FOR THE PURPOSE OF CHAPTER 1 OF THE INTERNAL REVENUE CODE OF
1954. //68A STAT. 3, 26 USC 1 ET SEQ.//
SEC. 109. (A) NO PERSON IN THE UNITED STATES SHALL ON THE GROUND OF
RACE, COLOR, NATIONAL ORIGIN, OR SEX BE EXCLUDED FROM PARTICIPATION IN,
BE DENIED THE BENEFITS OF, OR BE SUBJECTED TO DISCRIMINATION UNDER ANY
PROGRAM OR ACTIVITY FUNDED IN WHOLE OR IN PART WITH FUNDS MADE AVAILABLE
UNDER THIS TITLE.
(B) WHENEVER THE SECRETARY DETERMINES THAT A STATE OR UNIT OF GENERAL
LOCAL GOVERNMENT WHICH IS A RECIPEIENT OF ASSISTANCE UNDER THIS TITLE
HAS FAILED TO COMPLY WITH SUBSECTION (A) OR AN APPLICABLE REGULATION, HE
SHALL NOTIFY THE GOVERNOR OF SUCH STATE OR THE CHIEF EXECUTIVE OFFICER
OF SUCH UNIT OF LOCAL GOVERNMENT OF THE NONCOMPLIANCE AND SHALL REQUEST
THE GOVERNOR OR THE CHIEF EXECUTIVE OFFICER TO SECURE COMPLIANCE. IF
WITHIN A REASONABLE PERIOD OF TIME, NOT TO EXCEED SIXTY DAYS, THE
GOVERNOR OR THE CHIEF EXECUTIVE OFFICER FAILS OR REFUSES TO SECURE
COMPLIANCE, THE SECRETARY IS AUTHORIZED TO (1) REFER THE MATTER TO THE
ATTORNEY GENERAL WITH A RECOMMENDATION THAT AN APPROPRIATE CIVIL ACTION
BE INSTITUTED; (2) EXERCISE THE POWERS AND FUNCTIONS PROVIDED BY TITLE
VI OF THE CIVIL RIGHTS ACT OF 1964 (42 U.S.C. 2000D); (3) EXERCISE THE
POWERS AND FUNCTIONS PROVIDED FOR IN SECTION 11(A) OF THIS ACT; OR (4)
TAKE SUCH OTHER ACTION AS MAY BE PROVIDED BY LAW.
(C) WHEN A MATTER IS REFERRED TO THE ATTORNEY GENERAL PURSUANT TO
SUBSECTION (B), OR WHENEVER HE HAS REASON TO BELIEVE THAT A STATE
GOVERNMENT OR UNIT OF GENERAL LOCAL GOVERNMENT IS ENGAGED IN A PATTERN
OR PRACTICE IN VIOLATION OF THE PROVISIONS OF THIS SECTION, THE ATTORNEY
GENERAL MAY BRING A CIVIL ACTION IN ANY APPROPRIATE UNITED STATES
DISTRICT COURT FOR SUCH RELIEF AS MAY BE APPROPRIATE, INCLUDING
INJUNCTIVE RELIEF.
SEC. 110. ALL LABORERS AND MECHANICS EMPLOYED BY CONTRACTORS OR
SUBCONTRACTORS IN THE PERFORMANCE OF CONSTRUCTION WORK FINANCED IN WHOLE
OR IN PART WITH GRANTS RECEIVED UNDER THIS TITLE SHALL BE PAID WAGES AT
RATES NOT LESS THAN THOSE PREVAILING ON SIMILAR CONSTRUCTION IN THE
LOCALITY AS DETERMINED BY THE SECRETARY OF LABOR IN ACCORDANCE WITH THE
DAVIS-BACON ACT, AS AMENDED (40 U.S.C. 276A--276A-5): PROVIDED, THAT
THIS SECTION SHALL APPLY TO THE REHABILITATION OF RESIDENTIAL PROPERTY
ONLY IF SUCH PROPERTY IS DESIGNED FOR RESIDENTIAL USE FOR EIGHT OR MORE
FAMILIES. THE SECRETARY OF LABOR SHALL HAVE, WITH RESPECT TO SUCH LABOR
STANDARDS, THE AUTHORITY AND FUNCTIONS SET FORTH IN REORGANIZATION PLAN
NUMBERED 14 OF 1950 (15 F.R. 3176; 64 STAT. 1267) //5 USC APP.// AND
SECTION 2 OF THE ACT OF JUNE 13, 1934, AS AMENDED (48 STAT. 948; 40
U.S.C. 276(C)). //40 USC 276C.//
SEC. 111. (A) IF THE SECRETARY FINDS AFTER REASONABLE NOTICE AND
OPPORTUNITY FOR HEARING THAT A RECIPIENT OF ASSISTANCE UNDER THIS TITLE
HAS FAILED TO COMPLY SUBSTANTIALLY WITH ANY PROVISION OF THIS TITLE, THE
SECRETARY, UNTIL HE IS SATISFIED THAT THERE IS NO LONGER ANY SUCH
FAILURE TO COMPLY, SHALL--,
(1) TERMINATE PAYMENTS TO THE RECIPIENT UNDER THIS TITLE, OR
(2) REDUCE PAYMENTS TO THE RECIPIENT UNDER THIS TITLE BY AN
AMOUNT EQUAL TO THE AMOUNT OF SUCH PAYMENTS WHICH WERE NOT
EXPENDED IN ACCORDANCE WITH THIS TITLE, OR
(3) LIMIT THE AVAILABILITY OF PAYMENTS UNDER THIS TITLE TO
PROGRAMS, PROJECTS, OR ACTIVITIES NOT AFFECTED BY SUCH FAILURE TO
COMPLY.
(B)(1) IN LIEU OF, OR IN ADDITION TO, ANY ACTION AUTHORIZED BY
SUBSECTION (A), THE SECRETARY MAY, IF HE HAS REASON TO BELIEVE THAT A
RECIPIENT HAS FAILED TO COMPLY SUBSTANTIALLY WITH ANY PROVISION OF THIS
TITLE, REFER THE MATTER TO THE ATTORNEY GENERAL OF THE UNITED STATES
WITH A RECOMMENDATION THAT AN APPROPRIATE CIVIL ACTION BE INSTITUTED.
(2) UPON SUCH A REFERRAL THE ATTORNEY GENERAL MAY BRING A CIVIL
ACTION IN ANY UNITED STATES DISTRICT COURT HAVING VENUE THEREOF FOR SUCH
RELIEF AS MAY BE APPROPRIATE, INCLUDING AN ACTION TO RECOVER THE AMOUNT
OF THE ASSIISTANCE FURNISHED UNDER THIS TITLE WHICH WAS NOT EXPENDED IN
ACCORDANCE WITH IT, OR FOR MANDATORY OR INJUNCTIVE RELIEF.
(C)(1) ANY RECIPIENT WHICH RECEIVES NOTICE UNDER SUBSECTION (A) OF
THE TERMINATION, REDUCTION, OR LIMITATION OF PAYMENTS UNDER THIS TITLE
MAY, WITHIN SIXTY DAYS AFTER RECEIVING SUCH NOTICE, FILE WITH THE UNITED
STATES COURT OF APPEALS FOR THE CIRCUIT IN WHICH SUCH STATE IS LOCATED,
OR IN THE UNITED STATES COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA, A
PETITION FOR REVIEW OF THE SECRETARY'S ACTION. THE PETITIONER SHALL
FORTHWITH TRANSMIT COPIES OF THE PETITION TO THE SECRETARY AND THE
ATTORNEY GENERAL OF THE UNITED STATES, WHO SHALL REPRESENT THE SECRETARY
IN THE LITIGATION.
(2) THE SECRETARY SHALL FILE IN THE COURT RECORD OF THE PROCEEDING ON
WHICH HE BASED HIS ACTION, AS PROVIDED IN SECTION 2112 OF TITLE 28,
UNITED STATES CODE. //72 STAT. 941, 80 STAT. 1323.// NO OBJECTIVE TO
THE ACTION OF THE SECRETARY SHALL BE CONSIDERED BY THE COURT UNLESS SUCH
OBJECTIVE HAS BEEN URGED BEFORE THE SECRETARY.
(3) THE COURT SHALL HAVE JURISDICTION TO AFFIRM OR MODIFY THE ACTION
OF THE SECRETARY OR TO SET IT ASIDE IN WHOLE OR IN PART. THE FINDINGS
OF FACT BY THE SECRETARY, IF SUPPORTED BY SUBSTANTIAL EVIDENCE ON THE
RECORD CONSIDERED AS A WHOLE, SHALL BE CONCLUSIVE. THE COURT MAY ORDER
ADDITIONAL EVIDENCE TO BE TAKEN BY THE SECRETARY, AND TO BE MADE PART OF
THE RECORD. THE SECRETARY MAY MODIFY HIS FINDINGS OF FACT, OR MAKE NEW
FINDINGS, BY REASON OF THE NEW EVIDENCE SO TAKEN AND FILED WITH THE
COURT, AND HE SHALL ALSO FILE SUCH MODIFIED OR NEW FINDINGS, WHICH
FINDINGS WITH RESPECT TO QUESTIONS OF FACT SHALL BE CONCLUSIVE IF
SUPPORTED BY SUBSTANTIAL EVIDENCE ON THE RECORD CONSIDERED AS A WHOLE,
AND SHALL ALSO FILE HIS RECOMMENDATION, IF ANY, FOR THE MODIFICATION OR
SETTING ASIDE OF HIS ORIGINAL ACTION.
(4) UPON THE FILING OF THE RECORD WITH THE COURT, THE JURISDICTION OF
THE COURT SHALL BE EXCLUSIVE AND ITS JUDGMENT SHALL BE FINAL, EXCEPT
THAT SUCH JUDGMENT SHALL BE SUBJECT TO REVIEW BY THE SUPREME COURT OF
THE UNITED STATES UPON WRIT OF CERTIORARI OR CERTIFICATION AS PROVIDED
IN SECTION 1254 OF TITLE 28, UNITED STATES CODE. //62 STAT. 928.//
SEC. 112. (A) THE SECRETARY IS AUTHORIZED, NOTWITHSTANDING ANY OTHER
PROVISION OF THIS TITLE, TO APPLY A PORTION OF THE GRANTS, NOT TO EXCEED
20 PER CENTUM THEREOF WITHOUT THE REQUEST OF THE RECIPIENT, MADE OR TO
BE MADE UNDER SECTION 103(A) IN ANY FISCAL YEAR PURSUANT TO AN
ALLOCATION UNDER SECTION 106 TO ANY UNIT OF GENERAL LOCAL GOVERNMENT
TOWARD PAYMENT OF THE PRINCIPAL OF, AND ACCRUED INTEREST ON, ANY
TEMPORARY LOAN MADE IN CONNECTION WITH URBAN RENEWAL PROJECTS UNDER
TITLE I OF THE HOUSING ACT OF 1949 //42 USC 1450.// BEING CARRIED OUT
WITHIN THE JURISDICTION OF SUCH UNIT OF GENERAL LOCAL GOVERNMENT IF--,
(1) THE SECRETARY DETERMINES, AFTER CONSULTATION WITH THE LOCAL
PUBLIC AGENCY CARRYING OUT THE PROJECT AND THE CHIEF EXECUTIVE OF
SUCH UNIT OF GENERAL LOCAL GOVERNMENT, THAT THE PROJECT CANNOT BE
COMPLETED WITHOUT ADDITIONAL CAPITAL GRANTS, OR
(2) THE LOCAL PUBLIC AGENCY CARRYING OUT THE PROJECT SUBMITS TO
THE SECRETARY AN APPROPRIATE REQUEST WHICH IS CONCURRED IN BY THE
GOVERNING BODY OF SUCH UNIT OF GENERAL LOCAL GOVERNMENT.
IN DETERMINING THE AMOUNTS TO BE APPLIED TO THE PAYMENT OF TEMPORARY
LOANS, THE SECRETARY SHALL MAKE AN ACCOUNTING FOR EACH PROJECT TAKING
INTO CONSIDERATION THE COSTS INCURRED OR TO BE INCURRED, THE ESTIMATED
PROCEEDS UPON ANY SALE OR DISPOSITION OF PROPERTY, AND THE CAPITAL
GRANTS APPROVED FOR THE PROJECT.
(B) UPON APPLICATION BY ANY LOCAL PUBLIC AGENCY CARRYING OUT AN URBAN
RENEWAL PROJECT UNDER TITLE I OF THE HOUSING ACT OF 1949, WHICH
APPLICATION IS APPROVED BY THE GOVERNING BODY OF THE UNIT OF GENERAL
LOCAL GOVERNMENT IS WHICH THE PROJECT IS LOCATED, THE SECRETARY MAY
APPROVE A FINANCIAL SETTLEMENT OF SUCH PROJECT IF HE FINDS THAT A
SURPLUS OF CAPITAL GRANT FUNDS AFTER FULL REPAYMENT OF TEMPORARY LOAN
INDEBTEDNESS WILL RESULT AND MAY AUTHORIZE THE UNIT OF GENERAL LOCAL
GOVERNMENT TO USE SUCH SURPLUS FUNDS, WITHOUT DEDUCTION OR OFFSET, IN
ACCORDANCE WITH THE PROVISIONS OF THIS TITLE.
SEC. 113. (A) NOT LATER THAN 180 DAYS AFTER THE CLOSE OF EACH FISCAL
YEAR IN WHICH ASSISTANCE UNDER THIS TITLE IS FURNISHED, THE SECRETARY
SHALL SUBMIT TO THE CONGRESS A REPORT WHICH SHALL CONTAIN--,
(1) A DESCRIPTION OF THE PROGRESS MADE IN ACCOMPLISHING THE
OBJECTIVES OF THIS TITLE; AND
(2) A SUMMARY OF THE USE OF SUCH FUNDS AS APPROVED BY THE
SECRETARY DURING THE PRECEDING FISCAL YEAR.
(B) THE SECRETARY IS AUTHORIZED TO REQUIRE RECIPIENTS OF ASSISTANCE
UNDER THIS TITLE TO SUBMIT TO HIM SUCH REPORTS AND OTHER INFORMATION AS
MAY BE NECESSARY IN ORDER FOR THE SECRETARY TO MAKE THE REPORT REQUIRED
BY SUBSECTION (A).
SEC. 114. IN CARRYING OUT THE PROVISIONS OF THIS TITLE INCLUDING THE
ISSUANCE OF REGULATIONS, THE SECRETARY SHALL CONSULT WITH OTHER FEDERAL
DEPARTMENTS AND AGENCIES ADMINISTERING FEDERAL GRANT-IN-AID PROGRAMS.
SEC. 115. THE CONSENT OF THE CONGRESS IS HEREBY GIVEN TO ANY TWO OR
MORE STATES TO ENTER INTO AGREEMENTS OR COMPACTS, NOT IN CONFLICT WITH
ANY LAW OF THE UNITED STATES, FOR COOPERATIVE EFFORT AND MUTUAL
ASSISTANCE IN SUPPORT OF COMMUNITY DEVELOPMENT PLANNING AND PROGRAMS
CARRIED OUT UNDER THIS TITLE AS THEY PERTAIN TO INTERSTATE AREAS AND TO
LOCALITIES WITHIN SUCH STATES, AND TO ESTABLISH SUCH AGENCIES, JOINT OR
OTHERWISE, AS THEY MAY DEEM DESIRABLE FOR MAKING SUCH AGREEMENTS AND
COMPACTS EFFECTIVE.
SEC. 116. (A) EXCEPT WITH RESPECT TO PROJECTS AND PROGRAMS FOR WHICH
FUNDS HAVE BEEN PREVIOUSLY COMMITTED, NO NEW GRANTS OR LOANS SHALL BE
MADE AFTER JANUARY 1, 1975, UNDER (1) TITLE I OF THE DEMONSTRATION
CITIES AND METROPOLITAN DEVELOPMENT ACT OF 1966, //42 USC 3301.// (2)
TITLE I OF THE HOUSING ACT OF 1949, //42 USC 1450.// (3) SECTION 702 OR
SECTION 703 OF THE HOUSING AND URBAN DEVELOPMENT ACT OF 1955, //42 USC
3102, 3103.// (4) TITLE II OF THE HOUSING AMENDMENTS OF 1955, OR (5)
TITLE VII OF THE HOUSING ACT OF 1961. //42 USC 1491, 1500.//
(B) TO THE EXTENT THAT GRANTS UNDER TITLE I OF THE HOUSING ACT OF
1949 OR TITLE I OF THE DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT
ACT OF 1966 ARE PAYABLE FROM APPROPRIATIONS MADE FOR THE FISCAL YEAR
1975, AND ARE MADE WITH RESPECT TO A PROJECT OR PROGRAM BEING CARRIED ON
IN ANY UNIT OF GENERAL LOCAL GOVERNMENT WHICH IS ELIGIBLE TO RECEIVE A
GRANT FOR SUCH FISCAL YEAR UNDER SECTION 106 (A) OR (H) OF THIS ACT, THE
AMOUNT OF SUCH GRANTS MADE UNDER TITLE I OF THE HOUSING ACT OF 1949 OR
TITLE I OF THE DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT OF
1966 SHALL BE DEDUCTED FROM THE AMOUNT OF GRANTS WHICH SUCH UNIT OF
GENERAL LOCAL GOVERNMENT IS ELIGIBLE TO RECEIVE FOR THE FISCAL YEAR 1975
UNDER SUCH SECTION 106 (A) OR (H). THE DEDUCTION REQUIRED BY THE
PRECEDING SENTENCE SHALL BE DISREGARDED IN DETERMINING THE AMOUNT OF
GRANTS MADE TO ANY UNIT OF GENERAL LOCAL GOVERNMENT THAT MAY BE APPLIED,
PURSUANT TO SECTION 112 OF THIS ACT, TO PAYMENT OF TEMPORARY LOANS IN
CONNECTION WITH URBAN RENEWAL PROJECTS UNDER TITLE I OF THE HOUSING ACT
OF 1949. THE AMOUNT OF ANY APPROPRIATIONS MADE FOR THE FISCAL YEAR 1975
WHICH IS USED FOR GRANTS SO AS TO BE SUBJECT TO THE PROVISIONS OF THIS
SUBSECTION RELATING TO DEDUCTIONS SHALL BE DEEMED TO HAVE BEEN
APPROPRIATED FOR GRANTS PURSUANT TO SECTION 103(A) OF THIS ACT FOR SUCH
FISCAL YEAR FOR PURPOSES OF CALCULATIONS UNDER SECTIONS 106 AND 107 OF
THIS ACT.
(C) THE FIRST SENTENCE OF SECTION 103(B) OF THE HOUSING ACT OF 1949
//42 USC 1453.// IS AMENDED BY INSERTING BEFORE THE PERIOD AT THE END
THEREOF THE FOLLOWING: "; AND BY SUCH SUMS AS MAY BE NECESSARY
THEREAFTER".
(D)(1) SECTION 111(B) OF THE DEMONSTRATION CITIES AND METROPOLITAN
DEVELOPMENT ACT OF 1966 //42 USC 3311.// IS AMENDED BY INSERTING
IMMEDIATELY AFTER THE FIRST SENTENCE THE FOLLOWING NEW SENTENCE: "IN
ADDITION, THERE ARE AUTHORIZED TO BE APPROPRIATED FOR SUCH PURPOSE SUCH
SUMS AS MAY BE NECESSARY FOR THE FISCAL YEAR ENDING JUNE 30, 1975."
(2) SECTION 111(C) OF SUCH ACT //87 STAT. 422.// IS AMENDED BY
STRIKING OUT "JULY 1, 1974" AND INSERTING IN LIEU THEREOF "JULY 1,
1975."
(E)(1) SECTION 312(H) OF THE HOUSING ACT OF 1964 //42 USC 1452B.// IS
AMENDED (A) BY STRIKING OUT "AFTER OCTOBER 1, 1974" AND INSERTING IN
LIEU THEREOF "AFTER THE CLOSE OF THE ONE-YEAR PERIOD BEGINNING ON THE
DATE OF THE ENACTMENT OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF
1974", AND (B) BY STRIKING OUT "THAT DATE" AND INSERTING IN LIEU THEREOF
"THE CLOSE OF THAT PERIOD".
(2) SECTION 312(A)(1) OF SUCH ACT IS AMENDED BY INSERTING "OR" AT THE
END OF SUBPARAGRAPH (C), AND BY ADDING AFTER SUBPARAGRAPH (C) THE
FOLLOWING NEW SUBPARAGRAPH:
"(D) THE REHABILITATION IS A PART OF, OR IS NECESSARY OR
APPROPRIATE TO THE EXECUTION OF, AN APPROVED COMMUNITY DEVELOPMENT
PROGRAM UNDER TITLE I OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT
OF 1974 OR AN APPROVED URBAN HOMESTEAD PROGRAM UNDER SECTION 809
OF SUCH ACT;". //POST, P. 729.//
(F) WITH RESPECT TO THE PROGRAM PERIOD BEGINNING JANUARY 1, 1975, THE
SECRETARY MAY, WITHOUT REGARD TO THE REQUIREMENTS OF SECTION 104,
ADVANCE TO ANY METROPOLITAN CITY, URBAN COUNTY OR OTHER UNIT OF GENERAL
LOCAL GOVERNMENT, OUT OF THE AMOUNT ALLOCATED TO SUCH ENTITY PURSUANT TO
SECTION 106 (A) OR (H), AN AMOUNT NOT TO EXCEED 10 PER CENTUM OF THE
AMOUNT SO ALLOCATED WHICH SHALL BE AVAILABLE ONLY FOR USE (1) TO
CONTINUE PROJECTS OR PROGRAMS REFERRED TO IN CLAUSES (1) AND (2) OF
SUBSECTION (A) OF THIS SECTION, OR (2) TO PLAN AND PREPARE FOR THE
IMPLEMENTATION OF ACTIVITIES TO BE ASSISTED UNDER THIS TITLE.
(G) IN THE CASE OF FUNDS AVAILABLE FOR ANY FISCAL YEAR, THE SECRETARY
SHALL NOT CONSIDER ANY APPLICATION FROM A METROPOLITAN CITY OR URBAN
COUNTY FOR A GRANT PURSUANT TO SECTION 106(A) OR FROM A UNIT OF GENERAL
LOCAL GOVERNMENT FOR A GRANT PURSUANT TO SECTION 106(H) UNLESS SUCH
APPLICATION IS SUBMITTED ON OR PRIOR TO SUCH DATE (IN THAT FISCAL YEAR)
AS THE SECRETARY SHALL ESTABLISH AS THE FINAL DATE FOR SUBMISSION OF
APPLICATIONS FOR SUCH GRANTS IN THAT YEAR.
SEC. 117. (A) SECTION 3689 OF THE REVISED STATUTES, AS AMENDED (31
U.S.C. 711), IS AMENDED BY ADDING AFTER PARAGRAPH (22) (AS ADDED BY
SECTION 108(F) OF THIS ACT) THE FOLLOWING NEW PARAGRAPH:
"(23) FOR PAYMENTS REQUIRED FROM TIME TO TIME UNDER CONTRACTS ENTERED
INTO PURSUANT TO SECTION 103(B) OF THE HOUSING ACT OF 1949 //42 USC
1453.// WITH RESPECT TO PROJECTS OR PROGRAMS FOR WHICH FUNDS HAVE BEEN
COMMITTED ON OR BEFORE DECEMBER 31, 1974, AND FOR WHICH FUNDS HAVE NOT
PREVIOUSLY BEEN APPROPRIATED."
(B) THE SECRETARY IS AUTHORIZED TO TRANSFER THE ASSETS AND
LIABILITIES OF ANY PROGRAM WHICH IS SUPERSEDED OR INACTIVE BY REASON OF
THIS TITLE TO THE REVOLVING FUND FOR LIQUIDATING PROGRAMS ESTABLISHED
PURSUANT TO TITLE II OF THE INDEPENDENT OFFICES APPROPRIATION ACT OF
1965 (PUBLIC LAW 81 - 428; 68 STAT. 272, 295).
SEC. 118. SECTION 3 OF THE HOUSING AND URBAN DEVELOPMENT ACT OF 1968
//12 USC 1701U.// IS AMENDED BY INSERTING ", INCLUDING COMMUNITY
DEVELOPMENT BLOCK GRANTS UNDER TITLE I OF THE HOUSING AND COMMUNITY
DEVELOPMENT ACT OF 1974," IMMEDIATELY AFTER "DIRECT FINANCIAL
ASSISTANCE".
SEC. 201. (A) THE UNITED STATES HOUSING ACT OF 1937 IS AMENDED TO
READ AS FOLLOWS:
"SECTION 1. THIS ACT MAY BE CITED AS THE 'UNITED STATES HOUSING ACT
OF 1937'. //42 USC 1437 NOTE.//
"SEC. 2. IT IS THE POLICY OF THE UNITED STATES TO PROMOTE THE
GENERAL WELFARE OF THE NATION BY EMPLOYING ITS FUNDS AND CREDIT, AS
PROVIDED IN THIS ACT, TO ASSIST THE SEVERAL STATES AND THEIR POLITICAL
SUBDIVISIONS TO REMEDY THE UNSAFE AND UNSANITARY HOUSING CONDITIONS AND
THE ACUTE SHORTAGE OF DECENT, SAFE, AND SANITARY DWELLINGS FOR FAMILIES
OF LOW INCOME AND, CONSISTENT WITH THE OBJECTIVES OF THIS ACT, TO VEST
IN LOCAL PUBLIC HOUSING AGENCIES THE MAXIMUM AMOUNT OF RESPONSIBILITY IN
THE ADMINISTRATION OF THEIR HOUSING PROGRAMS. NO PERSON SHOULD BE
BARRED FROM SERVING ON THE BOARD OF DIRECTORS OR SIMILAR GOVERNING BODY
OF A LOCAL PUBLIC HOUSING AGENCY BECAUSE OF HIS TENANCY IN A LOW-INCOME
HOUSING PROJECT.
"SEC. 3. WHEN USED IN THIS ACT--,
"(1) THE TERM, 'LOW-INCOME HOUSING' MEANS DECENT, SAFE, AND SANITARY
DWELLINGS WITHIN THE FINANCIAL REACH OF FAMILIES OF LOW INCOME, AND
EMBRACES ALL NECESSARY APPURTENANCES THERETO. EXCEPT AS OTHERWISE
PROVIDED IN THIS SECTION, INCOME LIMITS FOR OCCUPANCY AND RENTS SHALL BE
FIXED BY THE PUBLIC HOUSING AGENCY AND APPROVED BY THE SECRETARY. THE
RENTAL FOR ANY DWELLING UNIT SHALL NOT EXCEED ONE-FOURTH OF THE FAMILY'S
INCOME AS DEFINED BY THE SECRETARY. NOTWITHSTANDING THE PRECEDING
SENTENCE, THE RENTAL FOR ANY DWELLING UNIT SHALL NOT BE LESS THAN THE
HIGHER OF (A) 5 PER CENTUM OF THE GROSS INCOME OF THE FAMILY OCCUPYING
THE DWELLING UNIT, AND (B) IF THE FAMILY IS RECEIVING PAYMENTS FOR
WELFARE ASSISTANCE FROM A PULBIC AGENCY AND A PART OF SUCH PAYMENTS,
ADJUSTED IN ACCORDANCE WITH THE FAMILY'S ACTUAL HOUSING COSTS, IS
SPECIFICALLY DESIGNATED BY SUCH AGENCY TO MEET THE FAMILY'S HOUSING
COSTS, THE PORTION OF SUCH PAYMENTS WHICH IS SO DESIGNATED. AT LEAST 20
PER CENTUM OF THE DWELLING UNITS IN ANY PROJECT PLACED UNDER ANNUAL
CONTRIBUTIONS CONTRACTS IN ANY FISCAL YEAR BEGINNING AFTER THE EFFECTIVE
DATE OF THIS SECTION SHALL BE OCCUPIED BY VERY LOW-INCOME FAMILIES. IN
DEFINING THE INCOME OF ANY FAMILY FOR THE PURPOSE OF THIS ACT, THE
SECRETARY SHALL CONSIDER INCOME FROM ALL SOURCES OF EACH MEMBER OF THE
FAMILY RESIDING IN THE HOUSEHOLD, EXCEPT THAT THERE SHALL BE EXCLUDED--,
"(A) THE INCOME OF ANY FAMILY MEMBER (OTHER THAN THE HEAD OF
THE HOUSEHOLD OR HIS SPOUSE) WHO IS UNDER EIGHTEEN YEARS OF AGE OR
IS A FULL-TIME STUDENT;
"(B) THE FIRST $300 OF THE INCOME OF SECONDARY WAGE EARNER WHO
IS THE SPOUSE OF THE HEAD OF THE HOUSEHOLD;
"(C) AN AMOUNT EQUAL TO $300 FOR EACH MEMBER OF THE FAMILY
RESIDING IN THE HOUSEHOLD (OTHER THAN THE HEAD OF THE HOUSEHOLD OR
HIS SPOUSE) WHO IS UNDER EIGHTEEN YEARS OF AGE OR WHO IS EIGHTEEN
YEARS OF AGE OR OLDER AND IS DISABLED OR HANDICAPPED OR A
FULL-TIME STUDENT;
"(D) NONRECURRING INCOME, AS DETERMINED BY THE SECRETARY;
"(E) 5 PER CENTUM OF THE FAMILY'S GROSS INCOME (10 PER CENTUM
IN THE CASE OF ELDERLY FAMILIES);
"(F) SUCH EXTRAORDINARY MEDICAL OR OTHER EXPENSES AS THE
SECRETARY APPROVES FOR EXCLUSION; AND
"(G) AN AMOUNT EQUAL TO THE SUMS RECEIVED BY THE HEAD OF THE
HOUSEHOLD OR HIS SPOUSE FROM, OR UNDER THE DIRECTION OF, ANY
PUBLIC OR PRIVATE NONPROFIT CHILD PLACING AGENCY FOR THE CARE AND
MAINTENANCE OF ONE OR MORE PERSONS WHO ARE UNDER EIGHTEEN YEARS OF
AGE AND WERE PLACED IN THE HOUSEHOLD BY SUCH AGENCY.
"(2) THE TERM 'LOW-INCOME FAMILIES' MEANS FAMILIES OF LOW INCOME WHO
CANNOT AFFORD TO PAY ENOUGH TO CAUSE PRIVATE ENTERPRISE IN THEIR
LOCALITY OR METROPOLITAN AREA TO BUILD AN ADEQUATE SUPPLY OF DECENT,
SAFE, AND SANITARY DWELLINGS FOR THEIR USE. THE TERM 'VERY LOW-INCOME
FAMILIES' MEANS FAMILIES WHOSE INCOMES DO NOT EXCEED 50 PER CENTUM OF
THE MEDIAN FAMILY INCOME FOR THE AREA, AS DETERMINED BY THE SECRETARY
WITH ADJUSTMENTS FOR SMALLER AND LARGER FAMILIES. THE TERM 'FAMILIES'
INCLUDES FAMILIES CONSISTING OF A SINGLE PERSON IN THE CASE OF (A) A
PERSON WHO IS AT LEAST SIXTY-TWO YEARS OF AGE OR IS UNDER A DISABILITY
AS DEFINED IN SECTION 223 OF THE SOCIAL SECURITY ACT //42 USC 423.// OR
IN SECTIO 102(5) OF THE DEVELOPMENT DISABILITIES SERVICES AND FACILITIES
CONSTRUCTION AMENDMENTS OF 1970, //42 USC 2691.// OR IS HANDICAPPED, (B)
A DISPLACED PERSON, AND (C) THE REMAINING MEMBER OF A TENANT FAMILY;
AND THE TERM 'ELDERLY FAMILIES' MEANS FAMILIES WHOSE HEADS (OR THEIR
SPOUSES), OR WHOSE SOLE MEMBERS, ARE PERSON DESCRIBED IN CLAUSE (A). A
PERSON SHALL BE CONSIDERED HANDICAPPED IF SUCH PERSON IS DETERMINED,
PURSUANT TO REGULATION ISSUED BY THE SECRETARY, TO HAVE AN IMPAIRMENT
WHICH (I) IS EXPECTED TO BE OF LONG-CONTINUED AND INDEFINITE DURATION,
(II) SUBSTANTIALLY INPEDES HIS ABILITY TO LIVE INDEPENDENTLY, AND (III)
IS OF SUCH A NATURE THAT SUCH ABILITY COULD BE IMPROVED BY MORE SUITABLE
HOUSING CONDITIONS. THE TERM 'DISPLACED PERSON' MEANS A PERSON
DISPLACED BY GOVERNMENTAL ACTION, OR A PERSON WHOSE DWELLING HAS BEEN
EXTENSIVELY DAMAGED OR DESTROYED AS A RESULT OF A DISASTER DECLARED OR
OTHERWISE FORMALLY RECOGNIZED PURSUANT TO FEDERAL DISASTER RELIEF LAWS.
NOTWITHSTANDING THE PRECEDING PROVISIONS OF THIS PARAGRAPH, THE TERM
'ELDERLY FAMILIES' INCLUDES TWO OR MORE ELDERLY, DISABLED, OR
HANDICAPPED INDIVIDUALS LIVING TOGETHER, OR ONE OR MORE SUCH INDIVIDUALS
LIVING WITH ANOTHER PERSON WHO IS DETERMINED UNDER REGULATIONS OF THE
SECRETARY TO BE A PERSON ESSENTIAL TO THEIR CARE OR WELL BEING.
"(3) THE TERM 'DEVELOPMENT' MEANS ANY OR ALL UNDERTAKINGS NECESSARY
FOR PLANNING, LAND ACQUISITION, DEMOLITION, CONSTRUCTION, OR EQUIPMENT,
IN CONNECTION WITH A LOW-INCOME HOUSING PROJECT. THE TERM 'DEVELOPMENT
COST' COMPRISES THE COST INCURRED BY A PUBLIC HOUSING AGENCY IN SUCH
UNDERTAKINGS AND THEIR NECESSARY FINANCING (INCLUDING THE PAYMENT OF
CARRYING CHARGES), AND IN OTHERWISE CARRYING OUT THE DEVELOPMENT OF SUCH
PROJECT. CONSTRUCTION ACTIVITY IN CONNECTION WITH A LOW-INCOME HOUSING
PROJECT MAY BE CONFINED TO THE RECONSTRUCTION, REMODELING, OR REPAIR OF
EXISTING BUILDINGS.
"(4) THE TERM 'OPERATION' MEANS ANY OR ALL UNDERTAKINGS APPROPRIATE
FOR MANAGEMENT, OPERATION, SERVICES, MAINTENANCE, SECURITY (INCLUDING
THE COST OF SECURITY PERSONNEL), OR FINANCING IN CONNECTION WITH A
LOW-INCOME HOUSING PROJECT. THE TERM ALSO MEANS THE FINANCING OF TENANT
PROGRAMS AND SERVICES FOR FAMILIES RESIDING IN LOW-INCOME HOUSING
PROJECTS, PARTICULARLY WHERE THERE IS MAXIMUM FEASIBLE PARTICIPATION OF
THE TENANTS IN THE DEVELOPMENT AND OPERATION OF SUCH TENANT PROGRAMS AND
SERVICES. AS USED IN THIS PARAGRAPH, THE TERM 'TENANT PROGRAMS AND
SERVICES' INCLUDES THE DEVELOPMENT AND MAINTENANCE OF TENANT
ORGANIZATIONS WHICH PARTICIPATE IN THE MANAGEMENT OF LOW-INCOME HOUSING
PROJECTS; THE TRAINING OF TENANTS TO MANAGE AND OPERATE SUCH PROJECTS
AND THE UTILIZATION OF THEIR SERVICES IN PROJECT MANAGEMENT AND
OPERATION; COUNSELING ON HOUSEHOLD MANAGEMENT, HOUSEKEEPING, BUDGETING,
MONEY MANAGEMENT, CHILD CARE, AND SIMILAR MATTERS; ADVICE AS TO
RESOURCES FOR JOB TRAINING AND PLACEMENT, EDUCATION, WELFARE, HEALTH,
AND OTHER COMMUNITY SERVICES; SERVICES WHICH ARE DIRECTLY RELATED TO
MEETING TENANT NEEDS AND PROVIDING A WHOLESOME LIVING ENVIRONMENT; AND
REFERRAL TO APPROPRIATE AGENCIES WHEN NECESSARY FOR THE PROVISION OF
SUCH SERVICES. TO THE MAXIMUM EXTENT AVAILABLE AND APPROPRIATE,
EXISTING PUBLIC AND PRIVATE AGENCIES IN THE COMMUNITY SHALL BE USED FOR
THE PROVISION OF SUCH SERVICES.
"(5) THE TERM 'ACQUISITION COST' MEANS THE AMOUNT PRUDENTLY REQUIRED
TO BE EXPANDED BY A PUBLIC HOUSING AGENCY IN ACQUIRING A LOW-INCOME
HOUSING PROJECT.
"(6) THE TERM 'PUBLIC HOUSING AGENCY' MEANS ANY STATE, COUNTY,
MUNICIPALITY, OR OTHER GOVERNMENTAL ENTITY OR PUBLIC BODY (OR AGENCY OR
INSTRUMENTALITY THEREOF) WHICH IS AUTHORIZED TO ENGAGE IN OR ASSIST IN
THE DEVELOPMENT OR OPERATION OF LOW-INCOME HOUSING.
"(7) THE TERM 'STATE' INCLUDES THE SEVERAL STATES, THE DISTRICT OF
COLUMBIA, THE COMMONWEALTH OF PUERTO RICO, THE TERRITORIES AND
POSSESSIONS OF THE UNITED STATES, THE TRUST TERRITORY OF THE PACIFIC
ISLANDS, AND INDIAN TRIBES, BANDS, GROUPS, AND NATIONS, INCLUDING ALASKA
INDIANS, ALEUTS, AND ESKIMOS, OF THE UNITED STATES.
"(8) THE TERM 'SECRETARY' MEANS THE SECRETARY OF HOUSING AND URBAN
DEVELOPMENT.
"(9) THE TERM 'LOW-INCOME HOUSING PROJECT' OR 'PROJECT' MEANS (A) ANY
LOW-INCOME HOUSING DEVELOPED, ACQUIRED, OR ASSISTED BY A PUBLIC HOUSING
AGENCY UNDER THIS ACT, AND (B) THE IMPROVEMENT OF ANY SUCH HOUSING.
"SEC. 4. (A) THE SECRETARY MAY MAKE LOANS OR COMMITMENTS TO MAKE
LOANS TO PUBLIC HOUSING AGENCIES TO HELP FINANCE OR REFINANCE THE
DEVELOPMENT, ACQUISITION, OR OPERATION OF LOW-INCOME HOUSING PROJECTS BY
SUCH AGENCIES. ANY CONTRACT FOR SUCH LOANS AND ANY AMENDMENT TO A
CONTRACT FOR SUCH LOANS SHALL PROVIDE THAT SUCH LOANS SHALL BEAR
INTEREST AT A RATE SPECIFIED BY THE SECRETARY WHICH SHALL NOT BE LESS
THAN A RATE DETERMINED BY THE SECRETARY OF THE TREASURY TAKING INTO
CONSIDERATION THE CURRENT AVERAGE MARKET YIELD ON OUTSTANDING MARKETABLE
OBLIGATIONS OF THE UNITED STATES WITH REMAINING PERIODS TO MATURITY
COMPARABLE TO THE AVERAGE MATURITIES OF SUCH LOANS, PLUS ONE-EIGHTH OF 1
PER CENTUM. SUCH LOANS SHALL BE SECURED IN SUCH MANNER AND SHALL BE
REPAID WITHIN SUCH PERIOD NOT EXCEEDING FORTY YEARS, OR NOT EXCEEDING
FORTY YEARS FROM THE DATE OF THE BONDS EVIDENCING THE LOAN, AS THE
SECRETARY MAY DETERMINE. THE SECRETARY MAY REQUIRE LOANS OR COMMITMENTS
TO MAKE LOANS UNDER THIS SECTION TO BE PLEDGED AS SECURITY FOR
OBLIGATIONS ISSUED BY A PUBLIC HOUSING AGENCY IN CONNECTION WITH A
LOW-INCOME HOUSING PROJECT.
"(B) THE SECRETARY MAY ISSUE AND HAVE OUTSTANDING AT ANY ONE TIME
NOTES AND OTHER OBLIGATIONS FOR PURCHASE BY THE SECRETARY OF THE
TREASURY IN AN AMOUNT WHICH WILL NOT, UNLESS AUTHORIZED BY THE
PRESIDENT, EXCEED $1,500,000,000. FOR THE PURPOSE OF DETERMINING
OBLIGATIONS INCURRED TO MAKE LOANS PURSUANT TO THIS ACT AGAINST ANY
LIMITATION OTHERWISE APPLICABLE WITH RESPECT TO SUCH LOANS, THE
SECRETARY SHALL ESTIMATE THE MAXIMUM AMOUNT TO BE LOANED AT ANY ONE TIME
PURSUANT TO LOAN AGREEMENTS THEN OUTSTANDING WITH PUBLIC HOUSING
AGENCIES. SUCH NOTES OR OTHER OBLIGATIONS SHALL BE IN SUCH FORMS AND
DENOMINATIONS AND SHALL BE SUBJECT TO SUCH TERMS AND CONDITIONS AS MAY
BE PRESCRIBED BY THE SECRETARY WITH THE APPROVAL OF THE SECRETARY OF THE
TREASURY. THE NOTES OR OTHER OBLIGATIONS ISSUED UNDER THIS SUBSECTION
SHALL HAVE SUCH MATURITIES AND BEAR SUCH RATE OR RATES OF INTEREST AS
SHALL BE DETERMINED BY THE SECRETARY OF THE TREASURY. THE SECRETARY OF
THE TREASURY IS AUTHORIZED AND DIDRECTED TO PURCHASE ANY NOTES OR OTHER
OBLIGATIONS OF THE SECRETARY ISSUED HEREUNDER AND FOR SUCH PURPOSE IS
AUTHORIZED TO USE AS A PUBLIC DEBT TRANSACTION THE PROCEEDS FROM THE
SALE OF ANY SECURITIES ISSUED UNDER THE SECOND LIBERTY BOND ACT, //31
USC 774.// AS AMENDED, AND THE PURPOSES FOR WHICH SECURITIES MAY BE
ISSUED UNDER SUCH ACT, AS AMENDED, ARE EXTENDED TO INCLUDE ANY PURCHASES
OF SUCH OBLIGATIONS. THE SECRETARY OF THE TREASURY MAY AT ANY TIME SELL
ANY OF THE NOTES OR OTHER OBLIGATIONS ACQUIRED BY HIM UNDER THIS
SECTION. ALL REDEMPTIONS, PURCHASES, AND SALES BY THE SECRETARY OF THE
TREASURY OF SUCH NOTES OR OTHER OBLIGATIONS SHALL BE TREATED AS PUBLIC
DEBT TRANSACTIONS OF THE UNITED STATES.
"SEC. 5. (A) THE SECRETARY MAY MAKE ANNUAL CONTRIBUTIONS TO PUBLIC
HOUSING AGENCIES TO ASSIST IN ACHIEVING AND MAINTAINING THE LOW-INCOME
CHARACTER OF THEIR PROJECTS. THE SECRETARY SHALL EMBODY THE PROVISIONS
FOR SUCH ANNUAL CONTRIBUTIONS IN A CONTRACT GUARANTEEING THEIR PAYMENT.
THE CONTRIBUTION PAYABLE ANNUALLY UNDER THIS SECTION SHALL IN NO CASE
EXCEED A SUM EQUAL TO THE ANNUAL AMOUNT OF PRINCIPAL AND INTEREST
PAYABLE ON OBLIGATIONS ISSUED BY THE PUBLIC HOUSING AGENCY TO FINANCE
THE DEVELOPMENT OR ACQUISITION COST OF THE LOW-INCOME PROJECT INVOLVED.
THE AMOUNT OF ANNUAL CONTRIBUTIONS WHICH WOULD BE ESTABLISHED FOR A
NEWLY CONSTRUCTED PROJECT BY A PUBLIC HOUSING AGENCY DESIGNED TO
ACCOMMODATE A NUMBER OF FAMILIES OF A GIVEN SIZE AND KIND MAY BE
ESTABLISHED UNDER THIS SECTION FOR A PROJECT BY SUCH PUBLIC HOUSING
AGENCY WHICH WOULD PROVIDE HOUSING FOR THE COMPARABLE NUMBER, SIZES, AND
KINDS OF FAMILIES THROUGH THE ACQUISITION AND REHABILITATION, OR USE
UNDER LEASE, OF STRUCTURES WHICH ARE SUITABLE FOR LOW-INCOME HOUSING USE
AND OBTAINED IN THE LOCAL MARKET. ANNUAL CONTRIBUTIONS PAYABLE UNDER
THIS SECTION SHALL BE PLEDGED, IF THE SECRETARY SO REQUIRES, AS SECURITY
FOR OBLIGATIONS ISSUED BY A PUBLIC HOUSING AGENCY TO ASSIST THE
DEVELOPMENT OR ACQUISITION OF THE PROJECT TO WHICH ANNUAL CONTRIBUTIONS
RELATE AND SHALL BE PAID OVER A PERIOD NOT TO EXCEED FORTY YEARS.
"(B) THE SECRETARY MAY PRESCRIBE REGULATIONS FIXING THE MAXIMUM
CONTRIBUTIONS AVAILABLE UNDER DIFFERENT CIRCUMSTANCES, GIVING
CONSIDERATION TO COST, LOCATION, SIZE, RENT-PAYING ABILITY OF
PROSPECTIVE TENANTS, OR OTHER FACTORS BEARING UPON THE AMOUNTS AND
PERIODS OF ASSISTANCE NEEDED TO ACHIEVE AND AMINTAIN LOW RENTALS. SUCH
REGULATIONS MAY PROVIDE FOR RATES OF CONTRIBUTION BASED UPON
DEVELOPMENT, ACQUISITION, OR OPERATION COSTS, NUMBER OF DWELLING UNITS,
NUMBER OF PERSONS HOUSED, INTEREST CHARGES, OR OTHER APPROPRIATE
FACTORS.
"(C) THE SECRETARY IS AUTHORIZED TO ENTER INTO CONTRACTS FOR ANNUAL
CONTRIBUTIONS AGGREGATING NOT MORE THAN $1,199,250,000 PER ANNUM, WHICH
LIMIT SHALL BE INCREASED BY $225,000,000 ON JULY 1, 1971, BY
$150,000,000 ON JULY 1, 1972, BY $400,000,000 ON JULY 1, 1973, AND BY
$965,000,000 ON JULY 1, 1974. OF THE AGGREGATE AMOUNT OF CONTRACTS FOR
ANNUAL CONTRIBUTIONS AUTHORIZED TO BE ENTERED INTO ON OR AFTER JULY 1,
1974, THE SECRETARY SHALL ENTER INTO CONTRACTS FOR ANNUAL CONTRIBUTIONS
AGGREGATING AT LEAST $150,000,000 PER ANNUM TO ASSIST IN FINANCING THE
DEVELOPMENT OF ACQUISITION COST OF LOW-INCOME HOUSING PROJECTS TO BE
OWNED BY PUBLIC HOUSING AGENCIES. NOT MORE THAN 50 PER CENTUM OF THE
DWELLING UNITS PLACED UNDER CONTRACT PURSUANT TO THE PRECEDING SENTENCE
MAY BE CONSTRUCTED OR SUBSTANTIALLY REHABILITATED FOR OWNERSHIP BY
PUBLIC HOUSING AGENCIES UNDER SECTION 8 OF THIS ACT. IN ADDITION TO THE
AMOUNT OF CONTRACTS FOR ANNUAL CONTRIBUTIONS REQUIRED TO BE ENTERED INTO
BY THE SECRETARY UNDER THE SECOND SENTENCE OF THIS SUBSECTION, THE
SECRETARY SHALL ENTER INTO CONTRACTS FOR ANNUAL CONTRIBUTIONS, OUT OF
THE AGGREGATE AMOUNT OF CONTRACTS FOR ANNUAL CONTRIBUTIONS AUTHORIZED
UNDER THIS SECTION TO BE ENTERED INTO ON OR AFTER JULY 1, 1974,
AGGREGATING AT LEAST $15,000,000 PER ANNUM, WHICH AMOUNT SHALL BE
INCREASED BY NOT LESS THAN $15,000,000 PER ANNUM, ON JULY 1, 1975, TO
ASSIST IN FINANCING THE DEVELOPMENT OR ACQUISITION COST OF LOW-INCOME
HOUSING FOR FAMILIES WHO ARE MEMBERS OF ANY INDIAN TRIBE, BAND, PUEBLO,
GROUP, OR COMMUNITY OF INDIANS OR ALASKA NATIVES WHICH IS RECOGNIZED BY
THE FEDERAL GOVERNMENT AS ELIGIBLE FOR SERVICE FROM THE BUREAU OF INDIAN
AFFAIRS, OR WHO ARE WARDS OF ANY STATE GOVERNMENT, EXCEPT THAT NONE OF
THE FUNDS MADE AVAILABLE UNDER THIS SENTENCE SHALL BE AVAILABLE FOR USE
UNDER SECTION 8. FOR THE PURPOSE OF THE PRECEDING SENTENCE, THE ANNUAL
CONTRIBUTIONS FOR A PROJECT SHALL, NOTWITHSTANDING ANY OTHER PROVISION
OF THIS ACT, BE EQUAL TO THE DIFFERENCE BETWEEN THE SUM OF THE TOTAL
DEBT SERVICE PAYMENT PLUS APPROVED OPERATING COSTS, AND THE RENTAL
PAYMENTS THAT TENANTS ARE REQUIRED TO MAKE UNDER SECTION 3(1) OF THIS
ACT. THE SECRETARY SHALL ENTER INTO ONLY SUCH NEW CONTRACTS FOR
PRELIMINARY LOANS AS ARE CONSISTENT WITH THE NUMBER OF DWELLING UNITS
FOR WHICH CONTRACTS FOR ANNUAL CONTRIBUTIONS MAY BE ENTERED INTO. THE
FAITH OF THE UNITED STATES IS SOLEMNLY PLEDGED TO THE PAYMENT OF ALL
ANNUAL CONTRIBUTIONS CONTRACTED FOR PURSUANT TO THIS SECTION, AND THERE
ARE HEREBY AUTHORIZED TO BE APPROPRIATED IN EACH FISCAL YEAR, OUT OF ANY
MONEY IN THE TREASURY NOT OTHERWISE APPROPRIATED, THE AMOUNTS NECESSARY
TO PROVIDE FOR SUCH PAYMENTS. ALL PAYMENTS OF ANNUAL CONTRIBUTIONS
PURSUANT TO THIS SECTION SHALL BE MADE OUT OF ANY FUNDS AVAILABLE FOR
PURPOSES OF THIS ACT WHEN SUCH PAYMENTS ARE DUE, EXCEPT THAT FUNDS
OBTAINED THROUGH THE ISSUANCE OF OBLIGATIONS PURSUANT TO SECTION 4(B)
(INCLUDING REPAYMENTS OR OTHER REALIZATIONS OF THE PRINCIPAL OF LOANS
MADE OUT OF SUCH FUNDS) SHALL NOT BE AVAILABLE FOR THE PAYMENT OF SUCH
ANNUAL CONTRIBUTIONS.
"(D) ANY CONTRACT FOR LOANS OR ANNUAL CONTRIBUTIONS, OR BOTH, ENTERED
INTO BY THE SECRETARY WITH A PUBLIC HOUSING AGENCY, MAY COVER ONE OR
MORE THAN ONE LOW-INCOME HOUSING PROJECT OWNED BY SUCH PUBLIC HOUSING
AGENCY; IN THE EVENT THE CONTRACT COVERS TWO OR MORE PROJECTS, SUCH
PROJECTS MAY, FOR ANY OF THE PURPOSES OF THIS ACT AND OF SUCH CONTRACT
(INCLUDING, BUT NOT LIMITED TO, THE DETERMINATION OF THE AMOUNT OF THE
LOAN, ANNUAL CONTRIBUTIONS, OR PAYMENTS IN LIEU OF TAXES, SPECIFIED IN
SUCH CONTRACT), BE TREATED COLLECTIVELY AS ONE PROJECT.
"(E) IN RECOGNITION THAT THERE SHOULD BE LOCAL DETERMINATION OF THE
NEED FOR LOW-INCOME HOUSING TO MEET NEEDS NOT BEING ADEQUATELY MET BY
PRIVATE ENTERPRISE--,
"(1) THE SECRETARY SHALL NOT MAKE ANY CONTRACT WITH A PUBLIC
HOUSING AGENCY FOR PRELIMINARY LOANS (ALL OF WHICH SHALL BE REPAID
OUT OF ANY MONEYS WHICH BECOME AVAILABLE TO SUCH AGENCY FOR THE
DEVELOPMENT OF THE PROJECTS INVOLVED) FOR SURVEYS AND PLANNING IN
RESPECT TO ANY LOW-INCOME HOUSING PROJECTS (I) UNLESS THE
GOVERNING BODY OF THE LOCALITY INVOLVED HAS BY RESOLUTION APPROVED
THE APPLICATION OF THE PUBLIC HOUSING AGENCY FOR SUCH PRELIMINARY
LOAN; AND (II) UNLESS THE PUBLIC HOUSING AGENCY HAS DEMONSTRATED
TO THE SATISFACTION OF THE SECRETARY THAT THERE IS NEED FOR SUCH
LOW-INCOME HOUSING WHICH IS NOT BEING MET BY PRIVATE ENTERPRISE;
AND
"(2) THE SECRETARY SHALL NOT MAKE ANY CONTRACT FOR LOANS (OTHER
THAN PRELIMINARY LOANS) OR FOR ANNUAL CONTRIBUTIONS PURSUANT TO
THIS ACT UNLESS THE GOVERNING BODY OF THE LOCALITY INVOLVED HAS
ENTERED INTO AN AGREEMENT WITH THE PUBLIC HOUSING AGENCY PROVIDING
FOR THE LOCAL COOPERATION REQUIRED BY THE SECRETARY PURSUANT TO
THIS ACT.
"(F) SUBJECT TO THE SPECIFIC LIMITATIONS OR STANDARDS IN THIS ACT
GOVERNING THE TERMS OF SALES, RENTALS, LEASES, LOANS, CONTRACTS FOR
ANNUAL CONTRIBUTIONS, OR OTHER AGREEMENTS, THE SECRETARY MAY, WHENEVER
HE DEEMS IT NECESSARY OR DESIRABLE IN THE FULFILLMENT OF THE PURPOSES OF
THIS ACT, CONSENT TO THE MODIFICATION, WITH RESPECT TO RATE OF INTEREST,
TIME OF PAYMENT OF ANY INSTALLMENT OF PRINCIPAL OR INTEREST, SECURITY,
AMOUNT OF ANNUAL CONTRIBUTION, OR ANY OTHER TERM, OF ANY CONTRACT OR
AGREEMENT OF ANY KIND TO WHICH THE SECRERARY IS A PARTY. WHEN THE
SECRETARY FINDS THAT IT WOULD PROMOTE ECONOMY OR BE IN THE FINANCIAL
INTEREST OF THE FEDERAL GOVERNMENT OR IS NECESSARY TO ASSURE OR MAINTAIN
THE LOW-INCOME CHARACTER OF THE PROJECTS INVOLVED, ANY CONTRACT
HERETOFORE OR HEREAFTER MADE FOR ANNUAL CONTRIBUTIONS, LOANS, OR BOTH,
MAY BE AMENDED OR SUPERSEDED BY A CONTRACT ENTERED INTO BY MUTUAL
AGREEMENT BETWEEN THE PUBLIC HOUSING AGENCY AND THE SECRETARY.
CONTRACTS MAY NOT BE AMENDED OR SUPERSEDED IN A MANNER WHICH WOULD
IMPAIR THE RIGHTS OF THE HOLDERS OF ANY OUTSTANDING OBLIGATIONS OF THE
PUBLIC HOUSING AGENCY INVOLVED FOR WHICH ANNUAL CONTRIBUTIONS HAVE BEEN
PLEDGED. ANY RULE OF LAW CONTRARY TO THIS PROVISION SHALL BE DEEMED
INAPPLICABLE.
"(G) IN ADDITION TO THE AUTHORITY OF THE SECRETARY UNDER SUBSECTION
(A) TO PLEDGE ANNUAL CONTRIBUTIONS AS SECURITY FOR OBLIGATIONS ISSUED BY
A PUBLIC HOUSING AGENCY, THE SECRETARY IS AUTHORIZED TO PLEDGED ANNUAL
CONTRIBUTIONS AS A GUARANTEE OF PAYMENT BY A PUBLIC HOUSING AGENCY OF
ALL PRINCIPAL AND INTEREST ON OBLIGATIONS ISSUED BY IT TO ASSIST THE
DEVELOPMENT OR ACQUISITION OF THE PROJECT TO WHICH THE ANNUAL
CONTRIBUTIONS RELATE, EXCEPT THAT NO OBLIGATION SHALL BE GUARANTEED
UNDER THIS SUBSECTION IF THE INCOME THEREON IS EXEMPT FROM FEDERAL
TAXATION.
"(H) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, A PUBLIC HOUSING
AGENCY MAY SELL A LOW-INCOME HOUSING PROJECT TO ITS LOW-INCOME TENANTS,
ON SUCH TERMS AND CONDITIONS AS THE AGENCY MAY DETERMINE, WITHOUT
AFFECTING THE SECRETARY'S COMMITMENT TO PAY ANNUAL CONTRIBUTIONS WITH
RESPECT TO THAT PROJECT, BUT SUCH CONTRIBUTIONS SHALL NOT EXCEED THE
MAXIMUM CONTRIBUTIONS AUTHORIZED UNDER SUBSECTION (A) OF THIS SECTION.
"SEC. 6. (A) SECRETARY MAY INCLUDE IN ANY CONTRACT FOR LOANS, ANNUAL
CONTRIBUTIONS, SALE, LEASE, MORTGAGE, OR ANY OTHER AGREEMENT OR
INSTRUMENT MADE PURSUANT TO THIS ACT, SUCH CONVENANTS, CONDITIONS, OR
PROVISIONS AS HE MAY DEEM NECESSARY IN ORDER TO INSURE THE LOW-INCOME
CHARACTER OF THE PROJECT INVOLVED. ANY SUCH CONTRACT MAY CONTAIN A
CONDITION REQUIRING THE MAINTENANCE OF AN OPEN SPACE OR PLAYGROUND IN
CONNECTION WITH THE HOUSING PROJECT INVOLVED IF DEEMED NECESSARY BY THE
SECRETARY FOR THE SAFETY OR HEALTH OF CHILDREN. ANY SUCH CONTRACT SHALL
REQUIRE THAT, EXCEPT IN THE CASE OF HOUSING PREDOMINANTLY FOR THE
ELDERLY, HIGH-RISE ELEVATOR PROJECTS SHALL NOT BE PROVIDED FOR FAMILIES
WITH CHILDREN UNLESS THE SECRETARY MAKES A DETERMINATION THAT THERE IS
NO PRACTICAL ALTERNATIVE.
"(B) EVERY CONTRACT MADE PURSUANT TO THIS ACT FOR LOANS (OTHER THAN
PRELIMINARY LOANS) OR ANNUAL CONTRIBUTIONS SHALL PROVIDE THAT THE COST
OF CONSTRUCTION AND EQUIPMENT OF THE PROJECT (EXCLUDING LAND,
DEMOLITION, AND NONDWELLING FACILITIES) ON WHICH THE CONPUTATION OF ANY
ANNUAL CONTRIBUTIONS UNDER THIS ACT MAY BE BASED SHALL NOT EXCEED BY
MORE THAN 10 PER CENTUM THE APPROPRIATE PROTOTYPE COST FOR THE AREA.
THE PROTOTYPE COSTS SHALL BE DETERMINED AT LEAST ANNUALLY BY THE
SECRETARY ON THE BASIS OF HIS ESTIMATE OF THE CONSTRUCTION COSTS OF NEW
DWELLING UNITS OF VARIOUS TYPES AND SIZES IN THE AREA SUITABLE FOR
OCCUPANCY BY PERSONS ASSISTED UNDER THIS ACT. IN MAKING HIS
DETERMINATION THE SECRETARY SHALL TAKE INTO ACCOUNT (1) THE EXTRA
DURABILITY REQUIRED FOR SAFETY AND SECURITY AND ECONOMICAL MAINTENANCE
OF SUCH HOUSING, (2) THE PROVISION OF AMENITIES DESIGNED TO GUARANTEE A
SAFE AND HEALTHY FAMILY LIFE AND NEIGHBORHOOD ENVIRONMENT, (3) THE
APPLICATION OF GOOD DESIGN AS AN ESSENTIAL COMPONENT OF SUCH HOUSING FOR
SAFETY AND SECURITY AS WELL AS OTHER PURPOSES, (4) THE MAINTENANCE OF
QUALITY IN ARCHITECTURE TO REFLECT THE STANDARDS OF THE NEIGHBORHOOD AND
COMMUNITY, (5) THE NEED FOR MAXIMIZING THE CONSERVATION OF ENERGY FOR
HEATING, LIGHTING, AND OTHER PURPOSES, (6) THE EFFECTIVENESS OF EXISTING
COST LIMITS IN THE AREA, AND (7) THE ADVICE AND RECOMMENDATIONS OF LOCAL
HOUSING PRODUCERS. THE PROTOTYPE COSTS FOR ANY AREA SHALL BECOME
EFFECTIVE UPON THE DATE OF PUBLICATION IN THE FEDERAL REGISTER.
"(C) EVERY CONTRACT FOR ANNUAL CONTRIBUTIONS SHALL PROVIDE THAT--,
"(1) THE SECRETARY MAY REQUIRE THE PUBLIC HOUSING AGENCY TO
REVIEW AND REVISE ITS MAXIMUM INCOME LIMITS IF THE SECRETARY
DETERMINES THAT CHANGED CONDITIONS IN THE LOCALITY MAKE SUCH
REVISION NECESSARY IN ACHIEVING THE PURPOSES OF THIS ACT;
"(2) THE PUBLIC HOUSING AGENCY SHALL DETERMINE, AND SO CERTIFY
TO THE SECRETARY, THAT EACH FAMILY IN THE PROJECT WAS ADMITTED IN
ACCORDANCE WITH DULY ADOPTED REGULATIONS AND APPROVED INCOME
LIMITS; AND THE PUBLIC HOUSING AGENCY SHALL REVIEW THE INCOMES OF
FAMILIES LIVING IN THE PROJECT AT INTERVALS OF TWO YEARS (OR AT
SHORTER INTERVALS WHERE THE SECRETARY DEEMS IT DESIRABLE);
"(3) THE PUBLIC HOUSING AGENCY SHALL PROMPTLY NOTIFY (I) ANY
APPLICANT DETERMINED TO BE INELIGIBLE FOR ADMISSION TO THE PROJECT
OF THE BASIS FOR SUCH DETERMINATION AND PROVIDE THE APPLICANT UPON
REQUEST, WITHIN A REASONABLE TIME AFTER THE DETERMINATION IS MADE,
WITH AN OPPORTUNITY FOR AN INFORMAL HEARING ON SUCH DETERMINATION,
AND (II) ANY APPLICANT DETERMINED TO BE ELIGIBLE FOR ADMISSION TO
THE PROJECT OF THE APPROXIMATE DATE OF OCCUPANCY INSOFAR AS SUCH
DATE CAN BE REASONABLY DETERMINED; AND
"(4) THE PUBLIC HOUSING AGENCY SHALL COMPLY WITH SUCH
PROCEDURES AND REQUIREMENTS AS THE SECRETARY MAY PRESCRIBE TO
ASSURE THAT SOUND MANAGEMENT PRACTICES WILL BE FOLLOWED IN THE
OPERATION OF THE PROJECT, INCLUDING REQUIREMENTS PERTAINING TO--,
"(A) THE ESTABLISHMENT OF TENANT SELECTION CRITERIA DESIGNED TO
ASSURE THAT, WITHIN A REASONABLE PERIOD OF TIME, THE PROJECT WILL
INCLUDE FAMILIES WITH A BROAD RANGE OF INCOMES AND WILL AVOID
CONCENTRATIONS OF LOW-INCOME AND DEPRIVED FAMILIES WITH SERIOUS
SOCIAL PROBLEMS, BUT THIS SHALL NOT PERMIT MAIN- TENANCE OF
VACANCIES TO AWAIT HIGHER INCOME TENANTS WHERE LOWER INCOME
TENANTS ARE AVAILABLE;
"(B) THE ESTABLISHMENT OF SATISFACTORY PROCEDURES DESIGNED TO
ASSURE THE PROMPT PAYMENT AND COLLECTION OF RENTS AND THE PROMPT
PROCESSING OF EVICTIONS IN THE CASE OF NON-PAYMENT OF RENT;
"(C) THE ESTABLISHMENT OF EFFECTIVE TENANT-MANAGEMENT
RELATIONSHIPS DESIGNED THAT SATISFACTORY STANDARDS OF TENANT
SECURITY AND PROJECT MAINTENANCE ARE FORMULATED AND THAT THE
PUBLIC HOUSING AGENCY (TOGETHER WITH TENANT COUNCILS WHERE THEY
EXIST) ENFORCES THOSE STANDARDS FULLY AND EFFECTIVELY; AND
"(D) THE DEVELOPMENT BY LOCAL HOUSING AUTHORITY MANAGEMENTS OF
VIABLE HOMEOWNERSHIP OPPORTUNITY PROGRAMS FOR LOW-INCOME FAMILIES
CAPABLE OF ASSUMING THE RESPONSIBILITIES OF HOME- OWNERSHIP.
"(D) EVERY CONTRACT FOR ANNUAL CONTRIBUTIONS WITH RESPECT TO A
LOW-INCOME HOUSING PROJECT SHALL PROVIDE THAT NO ANNUAL CONTRIBUTIONS BY
THE SECRETARY SHALL BE MADE AVAILABLE FOR SUCH PROJECT UNLESS SUCH
PROJECT (EXCLUSIVE OF ANY PORTION THEREOF WHICH IS NOT ASSISTED BY
ANNUAL CONTRIBUTIONS UNDER THIS ACT) IS EXEMPT FROM ALL REAL AND
PERSONAL PROPERTY TAXES LEVIED OR IMPOSED BY THE STATE, CITY, COUNTY, OR
OTHER POLITICAL SUBDIVISION; AND SUCH CONTRACT SHALL REQUIRE THE PUBLIC
HOUSING AGENCY TO MAKE PAYMENTS IN LIEU OF TAXES EQUAL TO 10 PER CENTUM
OF THE SUM OF THE ANNUAL SHELTER RENTS CHARGED IN SUCH PROJECT, OR SUCH
LESSER AMOUNT AS (I) IS PRESCRIBED BY STATE LAW, OR (II) IS AGREED TO BY
THE LOCAL GOVERNING BODY IN ITS AGREEMENT FOR LOCAL COOPERATION WITH THE
PUBLIC HOUSING AGENCY REQUIRED UNDER SECTION 5(E)( 2) OF THIS ACT, OR
(III) IS DUE TO FAILURE OF A LOCAL PUBLIC BODY OR BODIES OTHER THAN THE
PUBLIC HOUSING AGENCY TO PERFORM ANY OBLIGATION UNDER SUCH AGREEMENT.
IF ANY SUCH PROJECT IS NOT EXEMPT FROM ALL REAL AND PERSONAL PROPERTY
TAXES LEVIED OR IMPOSED BY THE STATE, CITY, COUNTY, OR OTHER POLITICAL
SUBDIVISION, SUCH CONTRACT SHALL PROVIDE, IN LIEU OF THE REQUIREMENT FOR
TAX EXEMPTION AND PAYMENTS IN LIEU OF TAXES, THAT NO ANNUAL
CONTRIBUTIONS BY THE SECRETARY SHALL BE MADE AVAILABLE FOR SUCH PROJECT
UNLESS AND UNTIL THE STATE, CITY, COUNTY, OR OTHER POLITICAL SUBDIVISION
IN WHICH SUCH PROJECT IS SITUATED SHALL CONTRIBUTE, IN THE FORM OF CASH
OR TAX REMISSION, THE AMOUNT BY WHICH THE TAXES PAID WITH RESPECT TO THE
PROJECT EXCEED 10 PER CENTUM OF THE ANNUAL SHELTER RENTS CHARGED IN SUCH
PROJECT.
"(E) EVERY CONTRACT FOR ANNUAL CONTRIBUTIONS SHALL PROVIDE THAT
WHENEVER IN ANY YEAR THE RECEIPTS OF A PUBLIC HOUSING AGENCY IN
CONNECTION WITH A LOW-INCOME HOUSING PROJECT EXCEED ITS EXPENDITURES
(INCLUDING DEBT SERVICE, OPERATION, MAINTENANCE, ESTABLISHMENT OF
RESERVES, AND OTHER COSTS AND CHARGES), AN AMOUNT EQUAL TO SUCH EXCESS
SHALL BE APPLIED, OR SET ASIDE FOR APPLICATION, TO PURPOSES WHICH, IN
THE DETERMINATION OF THE SECRETARY, WILL EFFECT A REDUCTION IN THE
AMOUNT OF SUBSEQUENT ANNUAL CONTRIBUTIONS.
"(F) EVERY CONTRACT FOR ANNUAL CONTRIBUTIONS SHALL PROVIDE THAT WHEN
THE PUBLIC HOUSING AGENCY AND THE SECRETARY MUTUALLY AGREE THAT A
HOUSING PROJECT IS OBSOLETE AS TO PHYSICAL CONDITION, OR LOCATION, OR
OTHER FACTORS, MAKING IT UNUSABLE FOR HOUSING PURPOSES, A PROGRAM OF
MODIFICATIONS OR CLOSEOUT SHALL BE PREPARED. IF IT IS MUTUALLY
DETERMINED THAT SUCH PROJECT CAN BE RETURNED TO USEFUL LIFE, THEN THE
SECRETARY IS AUTHORIZED TO UTILIZE SUCH ANNUAL CONTRIBUTIONS AS ARE
NECESSARY TO ENABLE THE LOCAL PUBLIC HOUSING AGENCY TO UNDERTAKE AN
AGREED-UPON PROGRAM OF MODIFICATIONS. IF IT IS MUTUALLY DETERMINED THAT
NO PROGRAM OF MODIFICATIONS IS FEASIBLE OR THAT SUCH A PROGRAM WOULD NOT
RETURN THE HOUSING TO A USEFUL LIFE, THEN THE SECRETARY IS AUTHORIZED TO
PREPARE A CLOSEOUT PROGRAM, UTILIZING SUCH ANNUAL CONTRIBUTIONS AS ARE
NECESSARY TO ACCOMMODATE THE OUTSTANDING INDEBTEDNESS ON THE PROJECT,
THE COST OF DEMOLITION (IF THE PHYSICAL IMPROVEMENTS ARE NOT TO BE
SOLD), AND THE COST OF RELOCATING DISPLACED FAMILIES INTO SATISFACTORY
REPLACEMENT HOUSING. THE NET CLOSEOUT COST TO THE FEDERAL GOVERNMENT
SHALL TAKE INTO CONSIDERATION ANY RECEIPTS FROM THE SALE OF PHYSICAL
IMPROVEMENTS, LAND, OR OTHER ASSETS, PURSUANT TO THE PROVISIONS OF THE
ANNUAL CONTRIBUTIONS CONTRACT.
"(G) EVERY CONTRACT FOR ANNUAL CONTRIBUTIONS (INCLUDING CONTRACTS
WHICH AMEND OR SUPERSEDE CONTRACTS PREVIOUSLY MADE) MAY PROVIDE THAT--,
"(1) UPON THE OCCURENCE OF A SUBSTANTIAL DEFAULT IN RESPECT TO
THE COVENANTS OR CONDITIONS TO WHICH THE PUBLIC HOUSING AGENCY IS
SUBJECT (AS SUCH SUBSTANTIAL DEFAULT SHALL BE DEFINED IN SUCH
CONTRACT), THE PUBLIC HOUSING AGENCY SHALL BE OBLIGATED AT THE
OPTION OF THE SECRETARY EITHER TO CONVEY TITLE IN ANY CASE WHERE,
IN THE DETERMINATION OF THE SECRETARY (WHICH DETERMINATION SHALL
BE FINAL AND CONCLUSIVE), SUCH CONVEYANCE OF TITLE IS NECESSARY TO
ACHIEVE THE PURPOSES OF THIS ACT, OR TO DELIVER TO THE SECRETARY
POSSESSION OF THE PROJECT, AS THEN CONSTITUTED, TO WHICH SUCH
CONTRACT RELATES; AND
"(2) THE SECRETARY SHALL BE OBLIGATED TO RECOVERY OR REDELIVER
POSSESSION OF THE PROJECT, AS CONSTITUTED AT THE TIME OF
RECONVEYANCE OR REDELIVERY, TO SUCH PUBLIC HOUSING AGENCY OR TO
ITS SUCCESSOR (IF SUCH PUBLIC HOUSING AGENCY OR A SUCCESSOR
EXISTS) UPON SUCH TERMS AS SHALL BE PRESCRIBED IN SUCH CONTRACT,
AND AS SOON AS PRACTICABLE (I) AFTER THE SECRETARY IS SATISFIED
THAT ALL DEFAULTS WITH RESPECT TO THE PROJECT HAVE BEEN CURED, AND
THAT THE PROJECT WILL, IN ORDER TO FULFILL THE PURPOSES OF THIS
ACT, THEREAFTER BE OPERATED IN ACCORDANCE WITH THE TERMS OF SUCH
CONTRACT; OR (II) AFTER THE TERMINATION OF THE OBLIGATION TO MAKE
ANNUAL CONTRIBUTIONS AVAILABLE UNLESS THERE ARE ANY OBLIGATIONS OR
COVENANTS OF THE PUBLIC HOUSING AGENCY TO THE SECRETARY WHICH ARE
THEN IN DEFAULT. ANY PRIOR CONVEYANCES AND RECONVEYANCES OR
DELIVERIES AND REDELIVERIES OF POSSESSION SHALL NOT EXHAUST THE
RIGHT TO REQUIRE A CONVEYANCE OR DELIVERY OF POSSESSION OF THE
PROJECT TO THE SECRETARY PURSUANT TO SUBPARAGRAPH (1) UPON THE
SUBSEQUENT OCCURRENCE OF A SUBSTANTIAL DEFAULT.
WHENEVER SUCH A CONTRACT FOR ANNUAL CONTRIBUTIONS INCLUDES PROVISIONS
WHICH THE SECRETARY IN SUCH CONTRACT DETERMINES ARE IN ACCORDANCE WITH
THIS SUBSECTION, AND THE PORTION OF THE ANNUAL CONTRIBUTION PAYABLE FOR
DEBT SERVICE REQUIREMENTS PURSUANT TO SUCH CONTRACT HAS BEEN PLEDGED BY
THE PUBLIC HOUSING AGENCY AS SECURITY FOR THE PAYMENT OF THE PRINCIPAL
AND INTEREST ON ANY OF ITS OBLIGATIONS, THE SECRETARY (NOTWITHSTANDING
ANY OTHER PROVISIONS OF THIS ACT) SHALL CONTINUE TO MAKE SUCH ANNUAL
CONTRIBUTIONS AVAILABLE FOR THE PROJECT SO LONG AS ANY OF SUCH
OBLIGATIONS REMAIN OUTSTANDING, AND MAY COVENANT IN SUCH CONTRACT THAT
IN ANY EVENT SUCH ANNUAL CONTRIBUTIONS SHALL IN EACH YEAR BE AT LEAST
EQUAL TO AN AMOUNT WHICH, TOGETHER WITH SUCH INCOME OR OTHER FUNDS AS
ARE ACTUALLY AVAILABLE FROM THE PROJECT FOR THE PURPOSE AT THE TIME SUCH
ANNUAL CONTRIBUTION IS MADE, WILL SUFFICE FOR THE PAYMENT OF ALL
INSTALLMENTS, FALLING DUE WITHIN THE NEXT SUCCEEDING TWELVE MONTHS, OF
PRINCIPAL AND INTEREST ON THE OBLIGATIONS FOR WHICH THE ANNUAL
CONTRIBUTIONS PROVIDED FOR IN THE CONTRACT SHALL HAVE BEEN PLEDGED AS
SECURITY. IN NO CASE SHALL SUCH ANNUAL CONTRIBUTIONS BE IN EXCESS OF
THE MAXIMUM SUM SPECIFIED IN THE CONTRACT INVOLVED, NOR FOR LONGER THAN
THE REMAINDER OF THE MAXIMUM PERIOD FIXED BY THE CONTRACT.
"SEC. 7. THE SECRETARY SHALL ENCOURAGE PUBLIC HOUSING AGENCIES, IN
PROVIDING HOUSING PREDOMINANTLY FOR DISPLACED OR ELDERLY FAMILIES, TO
DESIGN, DEVELOP, OR OTHERWISE ACQUIRE SUCH HOUSING TO MEET THE SPECIAL
NEEDS OF THE OCCUPANTS AND, WHEREVER PRACTICABLE, FOR USE IN WHOLE OR IN
PART AS CONGREGATE HOUSING: PROVIDED, THAT NOT MORE THAN 10 PER CENTUM
OF THE TOTAL AMOUNT OF CONTRACTS FOR ANNUAL CONTRIBUTIONS ENTERED INTO
ANY FISCAL YEAR PURSUANT TO THE NEW AUTHORITY GRANTED UNDER SECTION 202
OF THE HOUSING AND URBAN DEVELOPMENT ACT OF 1970 //42 USC 1410.// OR
UNDER ANY LAW SUBSEQUENTLY ENACTED SHALL BE ENTERED INTO WITH RESPECT TO
UNITS IN CONGREGRATE HOUSING. AS USED IN THIS SECTION THE TERM
'CONGREGATE HOUSING' MEANS LOW-INCOME HOUSING (A) IN WHICH SOME OR ALL
OF THE DWELLING UNITS DO NOT HAVE KITCHEN FACILITIES, AND (B) CONNECTED
WITH WHICH THERE IS A CENTRAL DINING FACILITY TO PROVIDE WHOLESOME AND
ECONOMICAL MEALS FOR ELDERLY AND DISPLACED FAMILIES UNDER TERMS AND
CONDITIONS PRESCRIBED BY THE PUBLIC HOUSING AGENCY TO PERMIT A GENERALLY
SELF-SUPPORTING OPERATION. EXPENDITURES INCURRED BY A PUBLIC AGENCY IN
THE OPERATION OF A CENTRAL DINING FACILITY IN CONNECTION WITH CONGREGATE
HOUSING (OTHER THAN THE COST OF PROVIDING FOOD AND SERVICE) SHALL BE
CONSIDERED ONE OF THE COSTS OF OPERATION OF THE PROJECT.
"SEC. 8. (A) FOR THE PURPOSE OF AIDING LOWER-INCOME FAMILIES IN
OBTAINING A DECENT PLACE TO LIVE AND OF PROMOTING ECONOMICALLY MIXED
HOUSING, ASSISTANCE PAVMENTS MAY BE MADE WITH RESPECT TO EXISTING, NEWLY
CONSTRUCTED, AND SUBSTANTIALLY REHABILITATED HOUSING IN ACCORDANCE WITH
THE PROVISIONS OF THIS SECTION.
"(B)(1) THE SECRETARY IS AUTHORIZED TO ENTER INTO ANNUAL
CONTRIBUTIONS CONTRACTS WITH PUBLIC HOUSING AGENCIES PURSUANT TO WHICH
SUCH AGENCIES MAY ENTER INTO CONTRACTS TO MAKE ASSISTANCE PAYMENTS TO
OWNERS OF EXISTING DWELLING UNITS IN ACCORDANCE WITH THIS SECTION. IN
AREAS WHERE NO PUBLIC HOUSING AGENCY HAS BEEN ORGANIZED OR WHERE THE
SECRETARY DETERMINES THAT A PUBLIC HOUSING AGENCY IS UNABLE TO IMPLEMENT
THE PROVISIONS OF THIS SECTION, THE SECRETARY IS AUTHORIZED TO ENTER
INTO SUCH CONTRACTS AND TO PERFORM THE OTHER FUNCTIONS ASSIGNED TO A
PUBLIC HOUSING AGENCY BY THIS SECTION.
"(2) TO THE EXTENT OF ANNUAL CONTRIBUTIONS AUTHORIZATIONS UNDER
SECTION 5(C) OF THIS ACT, //ANTE, P. 656.// THE SECRETARY IS AUTHORIZED
TO MAKE ASSISTANCE PAYMENTS PURSUANT TO CONTRACTS WITH OWNERS OR
PROSPECTIVE OWNERS WHO AGREE TO CONSTRUCT OR SUBSTANTIALLY REHABILITATE
HOUSING IN WHICH SOME OR ALL OF THE UNITS SHALL BE AVAILABLE FOR
OCCUPANCY BY LOWER-INCOME FAMILIES IN ACCORDANCE WITH THE PROVISIONS OF
THIS SECTION. THE SECRETARY MAY ALSO ENTER INTO ANNUAL CONTRIBUTIONS
CONTRACTS WITH PUBLIC HOUSING AGENCIES PURSUANT TO WHICH SUCH AGENCIES
MAY ENTER INTO CONTRACTS TO MAKE ASSISTANCE PAYMENTS TO SUCH OWNERS OR
PROSPECTIVE OWNERS.
"(C)(1) AN ASSISTANCE CONTRACT ENTERED INTO PURSUANT TO THIS SECTION
SHALL ESTABLISH THE MAXIMUM MONTHLY RENT (INCLUDING UTILITIES AND ALL
MAINTENANCE AND MANAGEMENT CHARGES) WHICH THE OWNER IS ENTITLED TO
RECEIVE FOR EACH DWELLING UNIT WITH RESPECT TO WHICH SUCH ASSISTANCE
PAYMENTS ARE TO BE MADE. THE MAXIMUM MONTHLY RENT SHALL NOT EXCEED BY
MORE THAN 10 PER CENTUM THE FAIR MARKET RENTAL ESTABLISHED BY THE
SECRETARY PERIODICALLY BUT NOT LESS THAN ANNUALLY FOR EXISTING OR NEWLY
CONSTRUCTED RENTAL DWELLING UNITS OF VARIOUS SIZES AND TYPES IN THE
MARKET AREA SUITABLE FOR OCCUPANCY BY PERSONS ASSISTED UNDER THIS
SECTION, EXCEPT THAT THE MAXIMUM MONTHLY RENT MAY EXCEED THE FAIR MARKET
RENTAL BY MORE THAN 10 BUT NOT MORE THAN 20 PER CENTUM WHERE THE
SECRETARY DETERMINES THAT SPECIAL CIRCUMSTANCES WARRANT SUCH HIGHER
MAXIMUM RENT OR THAT SUCH HIGHER RENT IS NECESSARY TO THE IMPLEMENTATION
OF A LOCAL HOUSING ASSISTANCE PLAN AS DEFINED IN SECTION 213(A)(5) OF
THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974. //POST, P. 674.//
PROPOSED FAIR MARKET RENTALS FOR AN AREA SHALL BE PUBLISHED IN THE
FEDERAL REGISTER WITH REASONABLE TIME FOR PUBLIC COMMENT, AND SHALL
BECOME EFFECTIVE UPON THE DATE OF PUBLICATION IN FINAL FORM IN THE
FEDERAL REGISTER.
"(2)(A) THE ASSISTANCE CONTRACT SAHLL PROVIDE FOR ADJUSTMENT ANNUALLY
OR MORE FREQUENTLY IN THE MAXIMUM MONTHLY RENTS FOR UNITS COVERED BY THE
CONTRACT TO REFLECT CHANGES IN THE FAIR MARKET RENTALS ESTABLISHED IN
THE HOUSING AREA FOR SIMILAR TYPES AND SIZES OF DWELLING UNITS OR, IF
THE SECRETARY DETERMINES, ON THE BASIS OF A REASONABLE FORMULA.
"(B) THE CONTRACT SHALL FURTHER PROVIDE FOR THE SECRETARY TO MAKE
ADDITIONAL ADJUSTMENTS IN THE MAXIMUM MONTHLY RENT FOR UNITS UNDER
CONTRACT TO THE EXTENT HE DETERMINES SUCH ADJUSTMENTS ARE NECESSARY TO
REFLECT INCREASES IN THE ACTUAL AND NECESSARY EXPENSES OF OWNING AND
MAINTAINING THE UNITS WHICH HAVE RESULTED FROM SUBSTANTIAL GENERAL
INCREASES IN REAL PROPERTY TAXES, UTILITY RATES, OR SIMILAR COSTS WHICH
ARE NOT ADEQUATELY COMPENSATED FOR BY THE ADJUSTMENT IN THE MAXIMUM
MONTHLY RENT AUTHORIZED BY SUBPARAGRAPH (A).
"(C) ADJUSTMENTS IN THE MAXIMUM RENTS AS HEREINBEFORE PROVIDED SHALL
NOT RESULT IN MATERIAL DIFFERENCES BETWEEN THE RENTS CHARGED FOR
ASSISTED AND COMPARABLE UNASSISTED UNITS, AS DETERMINED BY THE
SECRETARY.
"(3) THE AMOUNT OF THE MONTHLY ASSISTANCE PAYMENT WITH RESPECT TO ANY
DWELLING UNIT, IN THE CASE OF A LARGE VERY LOW-INCOME FAMILY, A VERY
LARGE LOWER INCOME FAMILY, OR A FAMILY WITH EXCEPTIONAL MEDICAL OR OTHER
EXPENSES, AS DETERMINED BY THE SECRETARY, SHALL BE THE DIFFERENCE
BETWEEN 15 PER CENTUM OF ONE-TWELFTH OF THE ANNUAL INCOME OF THE FAMILY
OCCUPYING THE DWELLING UNIT AND THE MAXIMUM MONTHLY RENT WHICH THE
CONTRACT PROVIDES THAT THE OWNER IS TO RECEIVE FOR THE UNIT. IN THE
CASE OF OTHER FAMILIES, THE SECRETARY SHALL ESTABLISH THE AMOUNT OF THE
ASSISTANCE PAYMENT AS THE DIFFERENCE BETWEEN NOT LESS THAN 15 PER CENTUM
NOR MORE THAN 25 PER CENTUM OF THE FAMILY'S INCOME AND THE MAXIMUM RENT,
TAKING INTO CONSIDERATION THE INCOME OF THE FAMILY, THE NUMBER OF MINOR
CHILDREN IN THE HOUSEHOLD, AND THE EXTENT OF MEDICAL OR OTHER UNUSUAL
EXPENSES INCURRED BY THE FAMILY. REVIEWS OF FAMILY INCOME SHALL BE MADE
NO LESS FREQUENTLY THAN ANNUALLY (EXCEPT THAT SUCH REVIEWS MAY BE MADE
AT INTERVALS NO LONGER THAN TWO YEARS IN THE CASE OF FAMILIES WHO ARE
ELDERLY FAMILIES).
"(4) THE ASSISTANCE CONTRACT SHALL PROVIDE THAT ASSISTANCE PAYMENTS
MAY BE MADE ONLY WITH RESPECT TO A DWELLING UNIT UNDER LEASE FOR
OCCUPANCY BY A FAMILY DETERMINED TO BE A LOWER INCOME FAMILY AT THE TIME
IT INITIALLY OCCUPIED SUCH DWELLING UNIT, EXCEPT THAT SUCH PAYMENTS MAY
BE MADE WITH RESPECT TO UNOCCUPIED UNITS FOR A PERIOD NOT EXCEEDING
SIXTY DAYS (A) IN THE EVENT THAT A FAMILY VACATES A DWELLING UNIT BEFORE
THE EXPIRATION DATE OF THE LEASE FOR OCCUPANCY OR (B) WHERE A GOOD FAITH
EFFORT IS BEING MADE TO FILL AN UNOCCUPIED UNIT.
"(5) ASSISTANCE PAYMENTS MAY BE MADE WITH RESPECT TO UP TO 100 PER
CENTUM OF THE DWELLING UNITS IN ANY STRUCTURE UPON THE APPLICATION OF
THE OWNER OR PROSPECTIVE OWNER. WITHIN THE CATEGORY OF PROJECTS
CONTAINING MORE THAN FIFTY UNITS AND DESIGNED FOR USE PRIMARILY BY
NONELDERLY AND NONHANDICAPPED PERSONS, THE SECRETARY MAY GIVE
PREFERENCE, THE SECRETARY SHALL COMPARE APPLICATIONS RECEIVED DURING
DISTINCT TIME PERIODS NOT EXCEEDING SIXTY DAYS IN DURATION.
"(6) THE SECRETARY SHALL TAKE SUCH STEPS AS MAY BE NECESSARY,
INCLUDING THE MAKING OF CONTRACTS FOR ASSITANCE PAYMENTS IN AMOUNTS IN
EXCESS OF THE AMOUNTS REQUIRED AT THE TIME OF THE INITIAL RENTING OF
DWELLING UNITS, THE RESERVATION OF ANNUAL CONTRIBUTIONS AUTHORITY FOR
THE PURPOSE OF AMENDING HOUSING ASSISTANCE CONTRACTS, OR THE ALLOCATION
OF A PORTION OF NEW AUTHORIZATIONS FOR THE PURPOSE OF AMENDING HOUSING
ASSISTANCE CONTRACTS, TO ASSURE THAT ASSISTANCE PAYMENTS ARE INCREASED
ON A TIMELY BASIS TO COVER INCREASES IN MAXIMUM MONTHLY RENTS OR
DECREASES IN FAMILY INCOMES.
"(7) AT LEAST 30 PER CENTUM OF THE FAMILIES ASSISTED UNDER THIS
SECTION WITH ANNUAL ALLOCATIONS OF CONTRACT AUTHORITY SHALL BE VERY
LOW-INCOME FAMILIES AT THE TIME OF THE INITAIL RENTING OF DWELLING
UNITS.
"(8) TO THE EXTENT AUTHORIZED IN CONTRACTS ENTERED INTO BY THE
SECRETARY WITH A PUBLIC HOUSING AGENCY, SUCH AGENCY MAY PURCHASE ANY
STRUCTURE CONTAINING ONE OR MORE DWELLING UNITS ASSISTED UNDER THIS
SECTION FOR THE PURPOSE OF RESELLING THE STRUCTURE TO THE TENANT OR
TENANTS OCCUPYING UNITS AGGREGATING IN VALUE AT LEAST 80 PER CENTUM OF
THE STRUCTURE'S TOTAL VALUE. ANY SUCH RESALE MAY BE MADE ON THE TERMS
AND CONDITIONS PRESCRIBED UNDER SECTION 5(H) AND SUBJECT TO THE
LIMITATION CONTAINED IN SUCH SECTION.
"(D)(1) CONTRACTS TO MAKE ASSISTANCE PAYMENTS ENTERED INTO BY A
PUBLIC HOUSING AGENCY WITH AN OWNER OF EXISTING HOUSING UNITS SHALL
PROVIDE (WITH RESPECT TO ANY UNIT) THAT--,
"(A) THE SELECTION OF TENANTS FOR SUCH UNIT SHALL BE THE
FUNCTION OF THE OWNER, SUBJECT TO THE PROVISIONS OF THE ANNUAL
CONTRIBUTIONS CONTRACT BETWEEN THE SECRETARY AND THE AGENCY;
"(B) THE AGENCY SHALL HAVE THE SOLE RIGHT TO GIVE NOTICE TO
VACATE, WITH THE OWNER HAVING THE RIGHT TO MAKE REPRESENTATION TO
THE AGENCY FOR TERMINATION OF TENANCY;
"(C) MAINTENANCE AND REPLACEMENT (INCLUDING REDECORATION) SHALL
BE IN ACCORDANCE WITH THE STANDARD PRACTICE FOR THE BUILDING
CONCERNED AS ESTABLISHED BY THE OWNER AND AGREED TO BY THE AGENCY;
AND
"(D) THE AGENCY AND THE OWNER SHALL CARRY OUT SUCH OTHER
APPROPRIATE TERMS AND CONDITIONS AS MAY BE MUTUALLY AGREED TO BY
THEM.
"(2) EACH CONTRACT FOR AN EXISTING STRUCTURE ENTERED INTO UNDER THIS
SECTION SHALL BE FOR A TERM OF NOT LESS THAN ONE MONTH NOR MORE THAN ONE
HUNDRED AND EIGHTY MONTHS.
"(E)(1) THE SECRETARY SHALL NOT CONTRACT TO MAKE ASSISTANCE PAYMENTS
WITH RESPECT TO A NEWLY CONSTRUCTED OR SUBSTANTIALLY REHABILITATED
DWELLING UNIT FOR A TERM OF LESS THAN ONE MONTH OR MORE THAN TWO HUNDRED
AND FORTY MONTHS. IN THE CASE OF A PROJECT OWNED BY, OR FINANCED BY A
LOAN OR LOAN GUARANTEE FROM, A STATE OR LOCAL AGENCY, THE TERM MAY NOT
EXCEED FOUR HUNDRED AND EIGHTY MONTHS.
"(2) THE CONTRACT BETWEEN THE SECRETARY AND THE OWNER WITH RESPECT TO
NEWLY CONSTRUCTED OR SUBSTANTIALLY REHABILITATED DWELLING UNITS SHALL
PROVIDE THAT ALL OWNERSHIP, MANAGEMENT, AND MAINTENANCE OF TENANCY,
SHALL BE ASSUMED BY THE OWNER (OR ANY ENTITY, INCLUDING A PUBLIC HOUSING
AGENCY, APPROVED BY THE SECRETARY, WITH WHICH THE OWNER MAY CONTRACT FOR
THE PERFORMANCE OF SUCH RESPONSIBILITIES).
"(3) THE CONSTRUCTION OR SUBSTANTIAL REHABILITATION OF DWELLING UNITS
TO BE ASSISTED UNDER THIS SECTION SHALL BE ELIGIBLE FOR FINANCING WITH
MORTGAGES INSURED UNDER THE NATIONAL HOUSING ACT. //12 USC 1701 NOTE.//
ASSISTANCE WITH RESPECT TO SUCH DWELLING UNITS SHALL NOT BE WITHHELD OR
MADE SUBJECT TO PREFERENCES BY REASON OF THE AVAILABILITY OF MORTGAGE
INSURANCE PURSUANT TO SECTION 244 OF SUCH ACT //POST, P. 679.// OR BY
REASON OF THE TAX-EXEMPT STATUS OF THE BONDS OR OTHER OBLIGATIONS TO BE
USED TO FINANCE SUCH CONSTRUCTION OR REHABILITATION.
"(4) NOTHING IN THIS ACT SHALL BE DEEMED TO PROHIBIT AN OWNER FROM
PLEDGING, OR OFFERING AS SECURITY FOR ANY LOAN OR OBLIGATION, A CONTRACT
FOR ASSISTANCE PAYMENTS ENTERED INTO PURSUANT TO THIS SECTION:
PROVIDED, THAT SUCH SECURITY IS IN CONNECTION WITH A PROJECT CONSTRUCTED
OR REHABILITATED PURSUANT TO AUTHORITY GRANTED IN THIS SECTION, AND THE
TERMS OF THE FINANCING OR ANY REFINANCING HAVE BEEN APPROVED BY THE
SECRETARY.
"(F) AS USED IN THIS SECTION--,
"(1) THE TERM 'LOWER FAMILIES' MEANS THOSE FAMILIES WHOSE
INCOMES DO NOT EXCEED 80 PER CENTUM OF THE MEDIAN INCOME FOR THE
AREA, AS DETERMINED BY THE SECRETARY WHICH ADJUSTMENTS FOR SMALLER
AND LARGER FAMILIES, EXCEPT THAT THE SECRETARY MAY ESTABLISH
INCOME CEILINGS HIGHER OR LOWER THAN 80 PER CENTUM OF THE MEDIAN
FOR THE AREA ON THE BASIS OF HIS FINDINGS THAT SUCH VARIATIONS ARE
NECESSARY BECAUSE OF PREVAILING LEVELS OF CONSTRUCTION COSTS,
UNUSUALLY HIGH OR LOW FAMILY INCOMES, OR OTHER FACTORS;
"(2) THE TERM 'VERY LOW-INCOME FAMILIES' MEANS THOSE FAMILIES
WHOSE INCOMES DO NOT EXCEED 50 PER CENTUM OF THE MEDIAN INCOME FOR
THE AREA, AS DETERMINED BY THE SECRETARY WITH A ADJUSTMENTS FOR
SMALLER AND LARGER FAMILIESF
"(3) THE TERM 'INCOME' MEANS INCOME FROM ALL SOURCES OF EACH
MEMBER OF THE HOUSEHOLD, AS DETERMINED IN ACCORDANCE WITH CRITERIA
PRESCRIBED BY THE SECRETARY;
"(4) THE TERM 'OWNER' MEANS ANY PRIVATE PERSON OR ENTITY,
INCLUDING A COOPERATIVE, OR A PUBLIC HOUSING AGENCY, HAVING THE
LEGAL RIGHT TO LEASE OR SUBLEASE NEWLY CONSTRUCTED OR
SUBSTANTIALLY REHABILITATED DWELLING UNITS AS DESCRIBED IN THIS
SECTION; AND
"(5) THE TERMS 'RENT' OR 'RENTAL' MEAN, WITH RESPECT TO MEMBERS
OF A COOPERATIVE, THE CHARGES UNDER THE OCCUPANCY AGREEMENTS
BETWEEN SUCH MEMBERS AND THE COOPERATIVE.
"(G) NOTWITHSTANDING ANY OTHER PROVISION OF THIS ACT, ASSISTANCE
PAYMENTS UNDER THIS SECTION MAY BE PROVIDED, IN ACCORDANCE WITH
REGULATIONS PRESCRIBED BY THE SECRETARY, WITH RESPECT TO SOME OR ALL OF
THE UNITS IN ANY PROJECT APPROVED PURSUANT TO SECTION 202 OF THE HOUSING
ACT OF 1959. //12 USC 1701Q.//
"(H) THE PROVISIONS OF SECTIONS 3(1), 5(E), AND 6, //ANTE, PP. 654,
656, 659.// AND ANY OTHER PROVISIONS OF THIS ACT, WHICH ARE INCONSISTENT
WITH THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO CONTRACTS FOR
ASSISTANCE ENTERED INTO UNDER THIS SECTION.
"SEC. 9. (A) IN ADDITION TO THE CONTRIBUTIONS AUTHORIZED TO BE MADE
FOR THE PURPOSES SPECIFIED IN SECTION 5 OF THIS ACT, THE SECRETARY MAY
MAKE ANNUAL CONTRIBUTIONS TO PUBLIC HOUSING AGENCIES FOR THE OPERATION
OF LOW-INCOME HOUSING PROJECTS. THE CONTRIBUTIONS PAYABLE ANNUALLY
UNDER THIS SECTION SHALL NOT EXCEED THE AMOUNTS WHICH THE SECRETARY
DETERMINES ARE REQUIRED (1) TO ASSURE THE LOW-INCOME CHARACTER OF THE
PROJECTS INVOLVED, AND (2) TO ACHIEVE AND MAINTAIN ADEQUATE OPERATING
SERVICES AND RESERVE FUNDS. THE SECRETARY SHALL EMBODY THE PROVISIONS
FOR SUCH ANNUAL CONTRIBUTIONS IN A CONTRACT GUARANTEEING THEIR PAYMENT
SUBJECT TO THE AVAILABILITY OF FUNDSS. FOR PURPOSES OF MAKING PAYMENTS
UNDER THIS SECTION, THE SECRETARY SHALL ESTABLISH STANDARDS FOR COSTS OF
OPERATION AND REASONABLE PROJECTIONS OF INCOME, TAKING INTO ACCOUNT THE
CHARACTER AND LOCATION OF THE PROJECT AND CHARACTERISTICS OF THE
FAMILIES SERVED, OR THE COSTS OF PROVIDING COMPARABLE SERVICES AS
DETERMINED IN ACCORDANCE WITH CRITERIA OR A FORMULA REPRESENTING THE
OPERATIONS OF A PROTOTYPE WELL-MANAGED PROJECT.
"(B) THE AGGREGATE RENTALS REQUIRED TO BE PAID IN ANY YEAR BY
FAMILIES RESIDING IN THE DWELLING UNITS ADMINISTERED BY A PUBLIC HOUSING
AGENCY RECEIVING ANNUAL CONTRIBUTIONS UNDER THIS SECTION SHALL NOT BE
LESS THAN AN AMOUNT EQUAL TO ONE-FIFTH OF THE SUM OF THE INCOMES OF ALL
SUCH FAMILIES.
"(C) OF THE AGGREGATE AMOUNT OF CONTRACTS FOR ANNUAL CONTIBUTIONS
AUTHORIZED IN SECTION 5(C) OF THIS ACT TO BE ENTERED INTO ON OR AFTER
JULY 1, 1974, THE SECRETARY IS AUTHORIZED TO ENTER INTO CONTRACTS FOR
ANNUAL CONTRIBUTIONS UNDER THIS SECTION AGGREGATING NOT MORE THAN
$500,000,000 PER ANNUM, WHICH AMOUNT SHALL BE INCREASED BY $60,000,000
ON JULY 1, 1975.
"SEC. 10. (A) IN THE PERFORMANCE OF, AND WITH RESPECT TO, THE
FUNCTIONS, POWERS, AND DUTIES VESTED IN HIM BY THIS ACT, THE SECRETARY,
NOTHWITHSTANDING THE PROVISIONS OF ANY OTHER LAW, SHALL--,
"(1) PREPARE ANNUALLY AND SUBMIT A BUDGET PROGRAM AS PROVIDED
FOR WHOLLY OWNED GOVERNMENT CORPORATIONS BY THE GOVERNMENT
CORPORATION CONTROL ACT, AS AMENDED; //31 USC 841 NOTE.// AND
"(2) MAINTAIN AN INTEGRAL SET OF ACCOUNTS WHICH SHALL BE
AUDITED ANNUALLY BY THE GENERAL ACCOUNTING OFFICE IN ACCORDANCE
WITH THE PRINCIPLES AND PROCEDURES APPLICABLE TO COMMERCIAL
TRANSACTIONS AS PROVIDED BY THE GOVERNMENT CORPORATION CONTROL
ACT, AS AMENDED, AND NO OTHER AUDIT SHALL BE REQUIRED.
"(B) ALL RECEIPTS AND ASSETS OF THE SECRETARY UNDER THIS ACT SHALL BE
AVAILABLE FOR THE PURPOSES OF THIS ACT UNTIL EXPENDED.
"(C) THE FEDERAL RESERVE BANKS ARE AUTHORIZED AND DIRECTED TO ACT AS
DEPOSITORIES, CUSTODIANS, AND FISCAL AGENTS FOR THE SECRETARY IN THE
GENERAL EXERCISE OF HIS POWERS UNDER THIS ACT, AND THE SECRETARY MAY
REIMBURSE ANY SUCH BANK FOR ITS SERVICES IN SUCH MANNER AS MAY BE AGREED
UPON.
"SEC. 11. (A) OBLIGATIONS ISSUED BY PUBLIC HOUSING AGENCY IN
CONNECTION WITH LOW-INCOME HOUSING PROJECTS WHICH (1) ARE SECURED (A) BY
A PLEDGE OF A LOAN UNDER ANY AGREEMENT BETWEEN SUCH PUBLIC HOUSING
AGENCY AND THE SECRETARY, OR (B) BY A PLEDGE OF ANNUAL CONTRIBUTIONS
UNDER AN ANNUAL CONTRIBUTIONS CONTRACT BETWEEN SUCH PUBLIC HOUSING
AGENCY AND THE SECRETARY, OR (C) BY A PLEDGE OF BOTH ANNUAL
CONTRIBUTIONS UNDER AN ANNUAL CONTRIBUTIONS CONTRACT AND A LOAN UNDER AN
AGREEMENT BETWEEN SUCH PUBLIC HOUSING AGENCY AND THE SECRETARY, AND (2)
BEAR, OR ARE ACCOMPANIED BY, A CERTIFICATE OF THE SECRETARY THAT SUCH
OBLIGATIONS ARE SO SECURED, SHALL BE INCONTESTABLE IN THE HANDS OF A
BEARER AND THE FULL FAITH AND CREDIT OF THE UNITED STATES IS PLEDGED TO
THE PAYMENT OF ALL AMOUNTS AGREED TO BE PAID BY THE SECRETARY AS
SECURITY FOR SUCH OBLIGATIONS.
"(B) EXCEPT AS PROVIDED IN SECTION 5(G), OBLIGATIONS, INCLUDING
INTEREST THEREON, ISSUED BY PUBLIC HOUSING AGENCIES IN CONNECTION WITH
LOW-INCOME HOUSING PROJECTS SHALL BE EXEMPT FROM ALL TAXATION NOW OR
HEREAFTER IMPOSED BY THE UNITED STATES WHETHER PAID BY SUCH AGENCIES OR
BY THE SECRETARY. THE INCOME DERIVED BY SUCH AGENCIES FROM SUCH
PROJECTS SHALL BE EXEMPT FROM ALL TAXATION NOW OR HEREAFTER IMPOSED BY
THE UNITED STATES.
"SEC. 12. ANY CONTRACT FOR LOANS, ANNUAL CONTRIBUTIONS, SALE, OR
LEASE PURSUANT TO THIS ACT SHALL CONTAIN A PROVISION REQUIRING THAT NOT
LESS THAN THE WAGES PREVAILING IN THE LOCALITY, AS DETERMINED OR ADOPTED
(SUBSEQUENT TO A DETERMINATION UNDER APPLICABLE STATE OR LOCAL LAW) BY
THE SECRETARY, SHALL BE PAID TO ALL ARCHITECTS, TECHNICAL ENGINEERS,
DRAFTSMEN, AND TECHNICIANS EMPLOYED IN THE DEVELOPMENT, AND ALL
MAINTENANCE LABORERS AND MECHANICS EMPLOYED IN THE DEVELOPEMENT, AND ALL
MAINTENANCE LABORERS AND MECHANICS EMPLOYED IN THE OPERATION, OF THE
LOW-INCOME HOUSING PROJECT INVOLVED; AND SHALL ALSO CONTAIN A PROVISION
THAT NOT LESS THAN THE WAGES PREVAILING IN THE LOCALITY, AS
PREDETERMINED BY THE SECRETARY OF LABOR PURSUANT TO THE DAVIS-BACON ACT
(49 STAT. 1011), //40 USC 276A NOTE.// SHALL BE PAID TO ALL LABORERS AND
MECHANICS EMPLOYED IN THE DEVELOPMENT OF THE PROJECT INVOLVED (INCLUDING
A PROJECT WITH NINE OR MORE UNITS ASSISTED UNDER SECTION 8 OF THIS ACT,
WHERE THE PUBLIC HOUSING AGENCY OR THE SECRETARY AND THE BUILDER OR
SPONSOR ENTER INTO AN AGREEMENT FOR SUCH USE BEFORE CONSTRUCTION OR
REHABILITATION IS COMMENCED), AND THE SECRETARY SHALL REQUIRE
CERTIFICATION AS TO COMPLIANCE WITH THE PROVISIONS OF THIS SECTION PRIOR
TO MAKING ANY PAYMENT UNDER SUCH CONTRACT."
(B) THE PROVISIONS OF SUBSECTION (A) OF THIS SECTION SHALL BE
EFFECTIVE ON SUCH DATE OR DATES AS THE SECRETARY OF HOUSING AND URBAN
DEVELOPMENT SHALL PRESCRIBE, BUT NOT LATER THAN EIGHTEEN MONTHS AFTER
THE DATE OF THE ENACTMENT OF THIS ACT; EXCEPT THAT (1) ALL OF THE
PROVISIONS OF SECTION 3(1) OF THE UNITED STATES HOUSING ACT OF 1937, AS
AMENDED BY SUBSECTION (A) OF THIS SECTION, //ANTE, P. 654.// SHALL
BECOME EFFECTIVE ON THE SAME DATE, (2) ALL OF THE PROVISIONS OF SECTIONS
5 AND 9(C) OF SUCH ACT AS SO AMENDED SHALL BECOME EFFECTIVE ON THE SAME
DATE, AND (3) SECTION 8 OF SUCH ACT AS SO AMENDED SHALL BE EFFECTIVE NOT
LATER THAN JANUARY 1, 1975. //42 USC 1437 NOTE.//
SEC. 202. TO THE EXTENT THAT SECTION 3(1) OF THE UNITED STATES
HOUSING ACT OF 1937, AS AMENDED BY SECTION 201(A) OF THIS ACT, WOULD
REQUIRE THE ESTABLISHMENT OF AN INCREASED MONTHLY RENTAL CHARGE FOR ANY
FAMILY WHICH OCCUPIES A LOW-INCOME HOUSING UNIT AS OF THE EFFECTIVE DATE
OF SUCH SECTION 3(1) (OTHER THAN BY REASON OF THE PROVISIONS RELATING TO
WELFARE ASSISTANCE PAYMENTS), THE REQUIRED ADJUSTMENT SHALL BE MADE, IN
ACCORDANCE WITH REGULATIONS OF THE SECRETARY, AS FOLLOWS: (A) THE FIRST
ADJUSTMENT SHALL NOT EXCEED $5 AND SHALL BECOME EFFECTIVE AS OF THE
MONTH FOLLOWING THE MONTH OF THE FIRST REVIEW OF THE FAMILY'S INCOME
PURSUANT TO SECTION 6(C)(2) OF SUCH ACT WHICH OCCURS AT LEAST SIX MONTHS
AFTER THE EFFECTIVE DATE OF SUCH SECTION 3(1), AND (B) SUBSEQUENT
ADJUSTMENTS, EACH OF WHICH SHALL NOT EXCEED $5, SHALL BE MADE AT
SIX-MONTH INTERVALS OVER WHATEVER PERIOD IS NECESSARY TO EFFECT THE FULL
REQUIRED INCREASE IN THE FAMILY'S RENTAL CHARGE. //42 USC 1437A NOTE.//
SEC. 203. THE RENTAL OR INCOME CONTRIBUTION PROVISIONS OF THE UNITED
STATES HOUSING ACT OF 1937, AS AMENDED BY SECTION 201 OF THIS ACT,
//ANTE, P. 653.// SHALL NOT PRECLUDE THE USE OF SPECIAL SCHEDULES OF
REQUIRED PAYMENTS AS APPROVED BY THE SECRETARY FOR PARTICIPANTS IN
MUTUAL HELP HOUSING PROJECTS WHO CONTRIBUTE LABOR, LAND, OR MATERIALS TO
THE DEVELOPMENT OF SUCH PROJECTS. //42 USC 1437F NOTE.//
REPEALED. //42 USC 1411D, 1455A.//
SEC. 205. SECTION 206(C) OF THE HOUSING ACT OF 1961 (PUBLIC LAW 87 -
70, APPROVED JUNE 30, 1961, 75 STAT. 165) //42 USC 1410 NOTE.// IS
AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING SENTENCE: "THE
SECRETARY OF HOUSING AND URBAN DEVELOPMENT IS AUTHORIZED TO AGREE WITH A
PUBLIC HOUSING AGENCY TO THE AMENDMENT OF ANY ANNUAL CONTRIBUTIONS
CONTRACT CONTAINING THE PROVISION PRESCRIBED IN SECTION 10(J) OF THE
UNITED STATES HOUSING ACT OF 1937 (AS IN EFFECT PRIOR TO THE ENACTMENT
OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974), //42 USC 1410.//
SO AS TO DELETE SUCH PROVISION AND WAIVE ANY RIGHTS OF THE UNITED STATES
THAT ARE ACCRUED OR MAY ACCRUE UNDER SUCH PROVISION."
SEC. 206. THE SIXTH SENTENCE OF PARAGRAPH "SEVENTH" OF SECTION 5136
OF THE REVISED STATUTES, AS AMENDED (12 U.S.C. 24), IS AMENDED--,
(1) BY STRIKING OUT "1412A(B) OF TITLE 42" WHEREVER IT APPEARS
AND INSERTING IN LIEU THEREOF "6(G) OF THE UNITED STATES HOUSING
ACT OF 1937"; //ANTE P. 659.//
(2) BY STRIKING OUT "EITHER" BEFORE CLAUSE (1);
(3) BY STRIKING OUT "(WHICH OBLIGATIONS SHALL HAVE A MATURITY
OF NOT MORE THAN EIGHTEEN MONTHS)" IN CLAUSE (1);
(4) BY STRIKING OUT "OR" BEFORE CLAUSE (2); AND
(5) BY INSERTING BEFORE THE COLON BEFORE THE FIRST PROVISO THE
FOLLOWING: "; OR (3) BY A PLEDGE OF BOTH ANNUAL CONTRIBUTIONS
UNDER AN ANNUAL CONTRIBUTIONS CONTRACT CONTAINING THE COVENANT BY
THE SECRETARY WHICH IS AUTHORIZED BY SECTION 6(G) OF THE UNITED
STATES HOUSING ACT OF 1937, AND A LOAN UNDER AN AGREEMENT BETWEEN
THE LOCAL PUBLIC HOUSING AGENCY AND THE SECRETARY IN WHICH THE
PUBLIC HOUSING AGENCY AGREES TO BORROW FROM THE SECRETARY, AND THE
SECRETARY AGREES TO LEND TO THE PUBLIC HOUSING AGENCY, PRIOR TO
THE MATURITY OF THE OBLIGATIONS INVOLVED, MONEYS IN AN AMOUNT
WHICH (TOGETHER WITH ANY OTHER MONEYS IRREVOCABLY COMMITTED UNDER
THE ANNUAL CONTRIBUTIONS CONTRACT TO THE PAYMENT OF PRINCIPAL AND
INTEREST ON SUCH OBLIGATIONS) WILL SUFFICE TO PROVIDE FOR THE
PAYMENT WHEN DUE OF ALL INSTALLMENTS OF PRINCIPAL AND INTEREST ON
SUCH OBLIGATIONS, WHICH MONEYS UNDER THE TERMS OF THE AGREEMENT
ARE REQUIRED TO BE USED FOR THE PURPOSE OF PAYING THE PRINCIPAL
AND INTEREST ON SUCH OBLIGATIONS AT THEIR MATURITY".
SEC. 207. (A) SECTION 606 OF THE ACT OF OCTOBER 14, 1940, AS AMENDED
(42 U.S.C. 1586), IS AMENDED BY STRIKING OUT THAT PART OF THE FIRST
SENTENCE IN SUBSECTION (B) WHICH FOLLOWS THE PARENTHETICAL PHRASE AND
INSERTING IN LIEU THEREOF A PERIOD, AND BY STRIKING OUT ALL OF THE
SECOND SENTENCE.
(B) SECTION 606(C)(1) OF SUCH ACT IS AMENDED BY INSERTING BEFORE THE
SEMICOLON AT THE END THEREOF THE FOLLOWING: "; OR, WITH THE
SECRETARY'S APPROVAL, USED TO FINANCE THE REPAIR OR REHABILITATION OF A
PROJECT OR PART THEREOF CONVEYED TO THE PUBLIC HOUSING AGENCY UNDER THIS
SECTION".
SEC. 208. NOTHING IN THIS TITLE OR ANY OTHER PROVISION OF LAW
AUTHORIZES THE SECRETARY OF HOUSING AND URBAN DEVELOPMENT TO APPLY ANY
POLICY OR PROCEDURE ESTABLISHED BY HIM WITH RESPECT TO THE RIGHTS OF AN
OWNER UNDER A LEASE ENTERED INTO UNDER SECTION 23 OF THE UNITED STATES
HOUSING ACT OF 1937 //42 USC 1421B.// IF SUCH LEASE WAS ENTERED INTO
PRIOR TO THE EFFECTIVE DATE OF SUCH POLICY OR PROCEDURE. //42 USC 1421B
NOTE.//
SEC. 209. THE SECRETARY SHALL CONSULT WITH THE SECRETARY OF HEALTH,
EDUCATION, AND WELFARE TO INSURE THAT SPECIAL PROJECTS FOR THE ELDERLY
OR THE HANDICAPPED AUTHORIZED PURSUANT TO UNITED STATES HOUSING ACT OF
1937 //ANTE, P. 653.// SHALL MEET ACCEPTABLE STANDARDS OF DESIGN AND
SHALL PROVIDE QUALITY SERVICES AND MANAGEMENT CONSISTENT WITH THE NEEDS
OF THE OCCUPANTS. SUCH PROJECTS SHALL BE SPECIFICALLY DESIGNED AND
EQUIPPED WITH SUCH "RELATED FACILITIES" (AS DEFINED IN SECTION 202(D)(
8) OF THE HOUSING ACT OF 1959) //POST, P. 671.// AS MAY BE NECESSARY TO
ACCOMMODATE THE SPECIAL ENVIRONMENTAL NEEDS OF THE INTENDED OCCUPANTS
AND SHALL BE IN SUPPORT OF AND SUPPORTED BY THE APPLICABLE STATE PLANS
FOR COMPREHENSIVE SERVICES PURSUANT TO SECTION 134 OF THE MENTAL
RETARDATION FACILITIES AND COMMUNITY MENTAL HEALTH CENTER CONSTRUCTION
ACT OF 1963 //42 USC 2674.// OR STATE AND AREA PLANS PURSUANT TO TITLE
III OF THE OLDER AMERICANS ACT OF 1965. //42 USC 3021.//
SEC. 210. (A) SECTION 202(A)(3) OF THE HOUSING ACT OF 1959 //12 USC
1701Q.// IS AMENDED BY STRIKING OUT ALL THAT FOLLOWS "AND SHALL BEAR
INTEREST AT A RATE" AND INSERTING IN LIEU THEREOF "WHICH IS NOT MORE
THAN A RATE DETERMINED BY THE SECRETARY OF THE TREASURY TAKING INTO
CONSIDERATION THE CURRENT AVERAGE MARKET YIELD ON OUTSTANDING MARKETABLE
OBLIGATIONS OF THE UNITED STATES WITH REMAINING PERIODS TO MATURITY
COMPARABLE TO THE AVERAGE MATURITIES OF SUCH LOANS, ADJUSTED TO THE
NEAREST ONE-EIGHTH OF 1 PER CENTUM, PLUS AN ALLOWANCE ADEQUATE IN THE
JUDGMENT OF THE SECRETARY TO COVER ADMINISTRATIVE COSTS AND PROBABLE
LOSSES UNDER THE PROGRAM."
(B) SECTION 202(D)(4) OF SUCH ACT IS AMENDED--,
(1) BY STRIKING OUT "A PHYSICAL" IN THE SECOND SENTENCE AND
INSERTING IN LIEU THEREOF "AN"; AND
(2) BY INSERTING AFTER THE SECOND SENTENCE THE FOLLOWING NEW
SENTENCE: "A PERSON SHALL ALSO BE CONSIDERED HANDICAPPED IF SUCH
PERSON IS A DEVELOPMENTAL DISABILITIES SERVICES AND FACILITIES
CONSTRUCTION AMENDMENTS OF 1950."
(C) SECTION 202 OF SUCH ACT //12 USC 1701Q.// IS FURTHER AMENDED BY
ADDING AT THE END THEREOF THE FOLLOWING NEW SUBSECTION:
"(F) IN CARRYING OUT THE PROVISIONS OF THIS SECTION, THE SECRETARY
SHALL SEEK TO ASSURE, PURSUANT TO APPLICABLE REGULATIONS, THAT HOUSING
AND RELATED FACILITIES ASSISTED UNDER THIS SECTION WILL BE IN
APPROPRIATE SUPPORT OF, AND SUPPORTED BY, APPLICABLE STATE AND LOCAL
PLANS WHICH RESPOND TO FEDERAL PROGRAM REQUIREMENTS BY PROVIDING AN
ASSURED RANGE OF NECESSARY SERVICES FOR INDIVIDUALS OCCUPYING SUCH
HOUSING (WHICH SERVICES MAY INCLUDE, AMONG OTHERS, HEALTH, CONTINUING
EDUCATION, WELFARE, INFORMATIONAL, RECREATIONAL, HOMEMAKER, COUNSELING,
AND REFERRAL SERVICES, TRANSPORTATION WHERE NECESSARY TO FACILITATE
ACCESS TO SOCIAL SERVICES, AND SERVICES DESIGNED TO ENCOURAGE AND ASSIST
RECIPIENTS TO USE THE SERVICES AND FACILITIES AVAILABLE TO THEM),
INCLUDING PLANS APPROVED BY THE SECRETARY OF HEALTH, EDUCATION, AND
WELFARE PURSUANT TO SECTION 134 OF THE MENTAL RETARDATION FACILITIES AND
COMMUNITY MENTAL HEALTH CENTER CONSTRUCTION ACT OF 1963 //42 USC 2674.//
OR PURSUANT TO TITLE III OF THE OLDER AMERICANS ACT OF 1965." //42 USC
3021.//
(D) SECTION 202(A)(4) OF SUCH ACT IS AMENDED--,
(1) BY INSERTING "(A)" IMMEDIATELY AFTER "(4)";
(2) BY INSERTING ", AND THE PROCEEDS FROM NOTES OR OTHER
OBLIGATIONS ISSUED UNDER SUBPARAGRAPH (B)," AFTER "AMOUNTS SO
APPROPRIATED"; AND
(3) BY ADDING AT THE END THEREOF THE FOLLOWING NEW
SUBPARAGRAPHS:
"(B)(I) TO CARRY OUT THE PURPOSES OF THIS SECTION, THE SECRETARY IS
AUTHORIZED TO ISSUE TO THE SECRETARY OF THE TREASURY NOTES OR OTHER
OBLIGATIONS IN AN AGGREGATE AMOUNT NOT TO EXCEED $800,000,000, IN SUCH
FORMS AND DENOMINATIONS, BEARING SUCH MATURITIES, AND SUBJECT TO SUCH
TERMS AND CONDITIONS AS MAY BE PRESCRIBED BY THE SECRETARY OF THE
TREASURY. SUCH NOTES OR OTHER OBLIGATIONS SHALL BEAR INTEREST AT A RATE
DETERMINED BY THE SECRETARY OF THE TREASURY, TAKING INTO CONSIDERATION
THE CURRENT AVERAGE MARKET YIELD ON OUTSTANDING MARKETABLE OBLIGATIONS
OF THE UNITED STATES OF COMPRABLE MATURITIES DURING THE MONTH PRECEDING
THE ISSUANCE OF THE NOTES OR OTHER OBLIGATIONS. THE SECRETARY OF THE
TREASURY IS AUTHORIZED AND DIRECTED TO PURCHASE ANY NOTES AND OTHER
OBLIGATIONS ISSUED HEREUNDER AND FOR THAT PURPOSE HE IS AUTHORIZED TO
USE AS A PUBLIC DEBT TRANSACTION THE PROCEEDS FROM THE SALE OF ANY
SECURITIES ISSUED UNDER THE SECOND LIBERTY BOND ACT, //40 STAT. 288, 31
USC 774.// AND THE PURPOSES FOR WHICH SECURITIES MAY BE ISSUED UNDER
THAT ACT ARE EXTENDED TO INCLUDE ANY PURCHASE OF SUCH NOTES AND
OBLIGATIONS. THE SECRETARY OF THE TREASURY MAY AT ANY TIME SELL ANY OF
THE NOTES OR OTHER OBLIGATIONS ACQUIRED BY HIM UNDER THIS SECTION. ALL
REDEMPTIONS, PURCHASES, AND SALES BY THE SECRETARY OF THE TREASURY OF
SUCH NOTES OR OTHER OBLIGATIONS SHALL BE TREATED AS PUBLIC DEBT
TRANSACTIONS OF THE UNITED STATES.
"(II) THE RECEIPTS AND DISBURSEMENTS OF THE FUND SHALL NOT BE
INCLUDED IN THE TOTAL OF THE BUDGET OF THE UNITED STATES GOVERNMENT AND
SHALL BE EXEMPT FROM ANY LIMITATION ON ANNUAL EXPENDITURE OR NET
LENDING.
"(C) AMOUNTS IN THE FUND SHALL BE AVAILABLE TO THE SECRETARY FOR THE
PURPOSE OF MAKING LOANS UNDER THIS SECTION AND FOR PAYING INTEREST ON
OBLIGATIONS ISSUED UNDER SUBPARAGRAPH (B). THE AGGREGATE LOANS MADE
UNDER THIS SECTION IN ANY FISCAL YEAR SHALL NOT EXCEED THE LIMITS ON
SUCH LENDING AUTHORITY ESTABLISHED FOR SUCH YEAR IN APPROPRIATION ACTS."
(E) SECTION 202(A) OF SUCH ACT //12 USC 1701Q.// IS AMENDED BY ADDING
AT THE END THEREOF THE FOLLOWING NEW PARAGRAPH:
"(5) TO THE MAXIMUM EXTENT PRACTICABLE, THE SECRETARY SHALL USE THE
SERVICES AND FACILITIES OF THE PRIVATE MORTGAGE INDUSTRY IN SERVICING
MORTGAGE LOANS MADE UNDER THIS SECTION."
(F) SECTION 202(D)(8) OF SUCH ACT IS AMENDED BY INSERTING IMMEDIATELY
AFTER "FAMILIES" THE FOLLOWING: "RESIDING IN THE PROJECT OR IN THE
AREA".
(G)(1) IN DETERMINING THE FEASIBILITY AND MARKETABILITY OF A PROJECT
UNDER SECTION 202 OF THE HOUSING ACT OF 1959, THE SECRETARY SHALL
CONSIDER THE AVAILABILITY OF MONTHLY ASSISTANCE PAYMENTS PURSUANT TO
SECTION 8 OF THE UNITED STATES HOUSING ACT OF 1937 WITH RESPECT TO SUCH
A PROJECT. //12 USC 1701Q NOTE.//
(2) THE SECRETARY SHALL INSURE THAT WITH THE ORIGINAL APPROVAL OF A
PROJECT AUTHORIZED PURSUANT TO SECTION 202 OF THE HOUSING ACT OF 1959,
AND THEREAFTER AT EACH ANNUAL REVISION OF THE ASSISTANCE CONTRACT UNDER
SECTION 8 OF THE UNITED STATES HOUSING ACT OF 1937 WITH RESPECT TO UNITS
IN SUCH PROJECT, THE PROJECT WILL SERVE BOTH LOW- AND MODERATE-INCOME
FAMILIES IN A MIX WHICH HE DETERMINES TO BE APPROPRIATE FOR THE AREA AND
FOR VIABLE OPERATION OF THE PROJECT; EXCEPT THAT THE SECRETARY SHALL
NOT PERMIT MAINTENANCE OF VACANCIES TO AWAIT TENANTS OF ONE INCOME LEVEL
WHERE TENANTS OF ANOTHER INCOME LEVEL ARE AVAILABLE.
SEC. 211. (A) SECTION 235 OF THE NATIONAL HOUSING ACT //12 USC
1715Z.// IS AMENDED--,
(1) BY STRIKING OUT "AND BY $200,000,000 ON JULY 1, 1971" IN
SEUBSECTION (H)(1) AND INSERTING IN LIEU THEREOF "BY $200,000,000
ON JULY 1, 1971, AND BY SUCH SUMS AS MAY BE APPROVED IN
APPROPRIATION ACTS AFTER JUNE 30, 1974, AND PRIOR TO JULY 1,
1976";
(2) BY ADDING AT THE END OF SUBSECTION (H)(1) THE FOLLOWING:
"UPON THE EXPIRATION OF ONE YEAR FOLLOWING THE DATE OF ENACTMENT
OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974, THE
SECRETARY SHALL NOT ENTER INTO NEW CONTRACTS FOR ASSISTANCE
PAYMENTS UNDER THIS SECITON UTILIZING AUTHORITY APPROVED IN
APPROPIRATION ACTS PRIOR TO JULY 1, 1974.";
(3) BY STRIKING OUT PARAGRAPH (2) OF SUBSECTION (H) AND
INSERTING IN LIEU THEREOF THE FOLLOWING:
"(2) ASSISTANCE PAYMENTS UNDER THIS SECTION MAY BE MADE ONLY WITH
RESPECT TO A FAMILY WHOSE INCOME AT THE TIME OF INITIAL OCCUPANCY DOES
NOT EXCEED 80 PER CENTUM OF THE MEDIAN INCOME FOR THE AREA, AS
DETERMINED BY THE SECRETARY WITH ADJUSTMENTS FOR SMALLER AND LARGER
FAMILIES, EXCEPT THAT THE SECRETARY MAY ESTABLISH INCOME CEILINGS HIGHER
OR LOWER THAN 80 PER CENTUM OF THE MEDIAN FOR THE AREA ON THE BASIS OF
HIS FINDINGS THAT SUCH VARIATIONS ARE NECESSARY BECAUSE OF PREVAILING
LEVELS OF CONSTRUCTION COSTS, UNUSUALLY HIGH OR LOW MEDIAN FAMILY
INCOMES, OR OTHER FACTORS.";
(4) BY STRIKING OUT "PRIOR TO JULY 1, 1972" IN SUBSECTION (H)(
3) (B) AND INSERTING IN LIEU THEREOF "ON OR AFTER JULY 1, 1969";
(5) BY INSERTING AFTER "MORTGAGE" IN THE FIRST SENTENCE OF
SUBSECTION (I)(1) THE FOLLOWING: "(INCLUDING ADVANCES WITH
RESPECT TO PROPERTY CONSTRUCTION OR REHABILITATION PURSUANT TO A
SELF-HELP PROGRAM)";
(6) BY STRIKING OUT PARAGRAPH (3)(C) OF SUBSECTION (I) AND
"(C) BE EXECUTED BY A MORTGAGOR WHO SHAL HAVE PAID IN CASH OR
ITS EQUIVALENT, ON ACCOUNT OF THE PROPERTY, AT LEAST AN AMOUNT
EQUAL TO 3 PER CENTUM OF THE SECRETARY'S ESTIMATE OFF THE COST OF
ACQUISITION."; AND
(7) BY STRIKING OUT "OCTOBER 1, 1974" IN SUBSECTION (M) AND
INSERTING IN LIEU THEREOF "JUNE 30, 1976".
(B) SECTION 235(A) OF SUCH ACT //12 USC 1715Z.// IS AMENDED BY
INSERTING AFTER "THIS SECTION" AT THE END OF THE SECOND SENTENCE THE
FOLLOWING: "OR WHICH MORTGAGES ARE ASSISTED UNDER A STATE OR LOCAL
PROGRAM PROVIDING ASSISTANCE THROUGH LOANS, LOAN INSURANCE OR TAX
ABATEMENT".
(C)(1) THE LAST PROVISO IN SECTION 235(B)(2) OF SUCH ACT IS AMENDED
BY STRIKING OUT "$18,000", "$21,000", AND "$24,000" AND INSERTING IN
LIEU THEREOF "$21,600", "$25,200", AND "$28,800", RESPECTIVELY.
(2) SECTION 235(I)(3)(B) OF SUCH ACT IS AMENDED BY STRIKING OUT
"$18,000", "$21,000", "$21,000", AND "$24,000" AND INSERTING IN LIEU
THEREOF "21,600", "$25,200", "$25,200", AND "$28,800", RESPECTIVELY.
SEC. 212. SECTION 236 OF THE NATIONAL HOUSING ACT //12 USC
1715Z-1.// IS AMENDED--,
(1) BY INSERTING "(1)" AFTER "(F) AT THE BEGINNING OF
SUBSECTION (F), AND BY REDESIGNATING CLAUSES (1) AND (2) OF SUCH
SUBSECTION AS CLAUSES (A) AND (B), RESPECTIVELY;
(2) BY ADDING AT THE END OF SUBSECTION (F)(1) THE FOLLOWING:
"WITH RESPECT TO THOSE PROJECTS WHICH THE SECRETARY DETERMINES
HAVE SEPARATE UTILITY METERING FOR SOME OR ALL DWELLING UNITS, THE
SECRETARY IS AUTHORIZED--,
"(I) TO PERMIT THE BASIC RENTAL CHARGE AND THE FAIR MARKET
RENTAL CHARGE TO BE DETERMINED ON THE BASIS OF OPERATING THE
PROJECT WITHOUT THE PAYMENT OF THE COST OF UTILITY SERVICES USED
BY SUCH DWELLING UNITS; AND
"(II) TO PERMIT THE CHARGING OF A RENTAL FOR SUCH DWELLING
UNITS AT SUCH AN AMOUNT LESS THAN 25 PER CENTUM OF A TENANT'S
INCOME AS THE SECRETARY DETERMINES REPRESENTS A PROPORTIONATE
DECREASE FOR THE UTILITY CHARGES TO BE PAID BY SUCH TENANT, BUT IN
NO CASE SHALL SUCH RENTAL BE LOWER THAN 20 PER CENTUM OF A
TENANT'S INCOME.
"(2) WITH RESPECT TO 20 PER CENTUM OF THE DWELLING UNITS IN ANY
PROJECT MADE SUBJECT TO A CONTRACT UNDER THIS SECTION AFTER THE DATE OF
ENACTMENT OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974, THE
SECRETARY SHALL MAKE, AND CONTRACT TO MAKE, ADDITIONAL ASSISTANCE
PAYMENTS TO THE PROJECT OWNER ON BEHALF OF TENANTS WHOSE INCOMES ARE TOO
LOW FOR THEM TO AFFORD THE BASIC RENTALS WITH 25 PER CENTUM OF THEIR
INCOME OR SUCH LOWER PER CENTUM AS MAY BE ESTABLISHED PURSUANT TO THE
PROVISIONS OF CLAUSE (II) OF THE LAST SENTENCE OF PARAGRAPH (1). THE
ADDITIONAL ASSISTANCE PAYMENTS AUTHORIZED BY THIS PARAGRAPH WITH RESPECT
TO ANY DWELLING UNIT SHALL BE THE AMOUNT REQUIRED TO REDUCE THE RENTAL
PAYMENT BY THE TENANT TO 25 PER CENTUM OF THE TENANT'S INCOME OR SUCH
LOWER PER CENTUM AS MAY BE ESTABLISHED PURSUANT TO THE PROVISIONS OF
CLAUSE (II) OF THE LAST SENTENCE OF PARAGRAPH (1). IN NO CASE SHALL
SUCH RENTAL PAYMENT BE REDUCED BELOW AN AMOUNT EQUAL TO UTILITY COSTS
ATTRIBUTABLE TO THE UNIT OCCUPIED BY THE TENANT, UNLESS THE SECRETARY
DETERMINES THAT THE APPLICATION OF THIS REQUIREMENT IN ANY AREA WOULD
RESULT IN UNDUE HARDSHIP BECAUSE OF UNUSUALLY HIGH UTILITY COSTS
PREVAILING SEASONALLY OR OTHERWISE IN SUCH AREA. NOTWITHSTANDING THE
FOREGOING PROVISIONS OF THIS PARAGRAPH, THE SECRETARY MAY--,
"(A) REDUCE SUCH 20 PER CENTUM REQUIREMENT IN THE CASE OF ANY
PROJECT IF HE DETERMINES THAT SUCH ACTION IS NECESSARY TO ASSURE
THE ECONOMINC VIABILITY OF THE PROJECT; OR
"(B) INCREASE SUCH 20 PER CENTUM REQUIREMENT IN THE CASE OF ANY
PROJECT IF HE DETERMINES THAT SUCH ACTION IS NECESSARY AND
FEASIBLE IN ORDER TO ASSURE, INSOFAR AS IS PRACTICABLE, THAT THERE
IS IN THE PROJECT A REASONABLE RANGE IN THE INCOME LEVELS OF
TENANTS, OR THAT SUCH ACTION IS TO BE TAKEN TO MEET THE HOUSING
NEEDS OF ELDERLY OR HANDICAPPED FAMILIES.
"(3) FOR EACH PROJECT THERE SHALL BE ESTABLISHED AN INITIAL OPERATING
EXPENSE LEVEL, WHICH SHALL BE THE SUM OF THE COST OF UTILITIES AND LOCAL
PROPERTY TAXES PAYABLE BY THE PROJECT OWNER AT THE TIME THE SECRETARY
DETERMINES THE PROPERTY TO BE FULLY OCCUPIED, TAKING INTO ACCOUNT
ANTICIPATED AND CUSTOMARY VACANCY RATES. AT ANY TIME SUBSEQUENT TO THE
ESTABLISHMENT OF AN INITIAL OPERATING EXPENSE LEVEL, THE SECRETARY IS
AUTHORIZED TO MAKE, AND CONTRACT TO MAKE, ADDITIONAL ASSISTANCE PAYMENTS
TO THE PROJECT OWNER IN AN AMOUNT UP TO THE AMOUNT BY WHICH THE SUM OF
THE COST OF UTILITIES AND LOCAL PROPERTY TAXES EXCEEDS THE INITIAL
OPERATING EXPENSE LEVEL, BUT NOT TO EXCEED THE AMOUNT REQUIRED TO
MAINTAIN THE BASIC RENTALS OF ANY UNITS AT LEVELS NOT IN EXCESS OF 30
PER CENTUM, OR SUCH LOWER PER CENTUM NOT LESS THAN 25 PER CENTUM AS
SHALL REFLECT THE REDUCTION PERMITTED IN CLAUSE (II) OF THE LAST
SENTENCE OF PARAGRAPH (1), OF THE INCOME OF TENANTS OCCUPYING SUCH
UNITS. ANY CONTRACT TO MAKE ADDITIONAL ASSISTANCE PAYMENTS MAY BE
AMENDED PERIODICALLY TO PROVIDE FOR APPROPRIATE ADJUSTMENTS IN THE
AMOUNT OF THE ASSISTANCE PAYMENTS. ADDITIONAL ASSISTANCE PAYMENTS SHALL
BE MADE PURSUANT TO THIS PARAGRAPH ONLY IF THE SECRETARY FINDS THAT THE
INCREASE IN THE COST OF UTILITIES OR LOCAL PROPERTY TAXES, IS REASONABLE
AND IS COMPARABLE TO COST INCREASES AFFECTING OTHER RENTAL PROJECTS IN
THE COMMUNITY.";
"(3) BY STRIKING OUT SUBSECTION (G) AND INSERTING IN LIEU
THEREOF THE FOLLOWING: //84 STAT. 1774, 12 USC 1715Z-1.//
"(G) THE PROJECT OWNER SHALL, AS REQUIRED BY THE SECRETARY,
ACCUMULATE, SAFEGUARD, AND PERIODICALLY PAY TO THE SECRETARY ALL RENTAL
CHARGES COLLECTED IN EXCESS OF THE BASIC RENTAL CHARGES. SUCH EXCESS
CHARGES SHALL BE CREDITED TO A RESERVE FUND TO BE USED BY THE SECRETARY
TO MAKE ADDITIONAL ASSISTANCE PAYMENTS AS PROVIDED IN PARAGRAPH (3) OF
SUBSECTION (F). DURING ANY PERIOD THAT THE SECRETARY DETERMINES THAT
THE BALANCE IN THE RESERVE FUND IS ADEQUATE TO MEET THE ESTIMATED
ADDITIONAL ASSISTANCE PAYMENTS, SUCH EXCESS CHARGES SHALL BE CREDITED TO
THE APPROPRIATION AUTHORIZED BY SUBSECTION (I) AND SHALL BE AVAILABLE
UNTIL THE END OF THE NEXT FISCAL YEAR FOR THE PURPOSE OF MAKING
ASSISTANCE PAYMENTS WITH RESPECT TO RENTAL HOUSING PROJECTS RECEIVING
ASSISTANCE UNDER THIS SECTION. FOR THE PURPOSE OF THIS SUBSECTION AND
PARAGRAPH (3) OF SUBSECTION (F), THE INITIAL OPERATING EXPENSE LEVEL FOR
ANY PROJECT ASSISTED UNDER A CONTRACT ENTERED INTO PRIOR TO THE DATE OF
ENACTMENT OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974 SHALL BE
ESTABLISHED BY THE SECRETARY NOT LATER THAN 180 DAYS AFTER THE DATE OF
ENACTMENT OF SUCH ACT.";
(4) BY STRIKING OUT "AND BY $200,000,000 ON JULY 1, 1971" IN
SUBSECTION (I)(1) AND INSERTING IN LIEU THEREOF "BY $200,000,000
ON JULY 1, 1971, AND BY $75,000,000 ON JULY 1, 1974";
(5) BY STRIKING OUT PARAGRAPH (2) AND (3) OF SUBSECTION (I) AND
INSERTING IN LIEU THEREOF THE FOLLOWING:
"(2) CONTRACTS FOR ASSISTANCE PAYMENTS UNDER THIS SECTION MAY BE
ENTERED INTO ONLY WITH RESPECT TO TENANTS WHOSE INCOMES DO NOT EXCEED 80
PER CENTUM OF THE MEDIAN FAMILY INCOME FOR THE AREA, AS DETERMINED BY
THE SECRETARY WITH ADJUSTMENTS FOR SMALLER AND LARGER FAMILIES, EXCEPT
THAT THE SECRETARY MAY ESTABLISH INCOME CEILINGS HIGHER OR LOWER THAN 80
PER CENTUM OF THE MEDIAN FOR THE AREA ON THE BASIS OF HIS FINDINGS THAT
SUCH VARIATIONS ARE NECESSARY BECAUSE OF PREVAILING LEVELS OF
CONSTRUCTION COSTS, UNUSUALLY HIGH OR LOW FAMILY INCOMES, OR OTHER
FACTORS.
(3) NOT LESS THAN 10 PER CENTUM OF THE TOTAL AMOUNT OF CONTRACTS FOR
ASSISTANCE PAYMENTS AUTHORIZED BY APPROPRIATION ACTS TO BE MADE AFTER
JUNE 30, 1974, SHALL BE AVAILABLE FOR USE ONLY WITH RESPECT TO
DWELLINGS, OR DWELLING UNITS IN PROJECTS, WHICH ARE APPROVED BY THE
SECRETARY PRIOR TO REHABILITATION.
"(4) AT LEAST 20 PER CENTUM OF THE TOTAL AMOUNT OF CONTRACTS FOR
ASSISTANCE PAYMENTS AUTHORIZED IN APPROPRIATION ACTS TO BE MADE AFTER
JUNE 30, 1974, SHALL BE AVAILABLE FOR USE ONLY WITH RESPECT TO PROJECTS
WHICH ARE PLANNED IN WHOLE OR IN PART FOR OCCUPANCY BY ELDERLY OR
HANDICAPPED FAMILIES. AS USED IN THIS PARAGRAPH, THE TERM 'ELDERLY
FAMILIES' MEANS FAMILIES WHICH CONSIST OF TWO OR MORE PERSONS THE HEAD
OF WHICH (OR HIS SPOUSE) IS SIXTY-TWO YEARS OF AGE OR OVER OR IS
HANDICAPPED. SUCH TERM ALSO MEANS A SINGLE PERSON WHO IS SIXTY-TWO
YEARS OF AGE OR OVER OR IS HANDICAPPED. A PERSON SHALL BE CONSIDERED
HANDICAPPED IF SUCH PERSON IS DETERMINED, PURSUANT TO REGULATIONS ISSUED
BY THE SECRETARY, TO HAVE AN IMPAIRMENT WHICH (A) IS EXPECTED TO BE OF
LONG-CONTINUED AND INDEFINITE DURATION, (B) SUBSTANTIALLY IMPEDES HIS
ABILITY TO LIVE INDEPENDENTLY, AND (C) IS OF SUCH A NATURE THAT SUCH
ABILITY COULD BE IMPROVED BY MORE SUITABLE HOUSING CONDITIONS.";
(6) BY STRIKING OUT "OCTOBER 1, 1974" IN SUBSECTION (N) AND
INSERTING IN LIEU THEREOF "JUNE 30, 1976"; //12 USC 1715Z-1.//
AND
(7) BY ADDING AT THE END THEREOF THE FOLLOWING:
"(P) THE SECRETARY IS AUTHORIZED TO ENTER INTO CONTRACTS WITH STATE
OR LOCAL AGENCIES APPROVED BY HIM TO PROVIDE FOR THE MONITORING AND
SUPERVISION BY SUCH AGENCIES OF THE MANAGEMENT BY PRIVATE SPONSORS OF
PROJECTS ASSISTED UNDER THIS SECTION. SUCH CONTRACTS SHALL REQUIRE THAT
SUCH AGENCIES PROMPTLY REPORT TO THE SECRETARY ANY DEFICIENCIES IN THE
MANAGEMENT OF SUCH PROJECTS IN ORDER TO ENABLE THE SECRETARY TO TAKE
CORRECTIVE ACTION AT THE EARLIEST PRACTICABLE TIME."
FUNDS
//42 USC 1439.//
SEC. 213. (A)(1) THE SECRETARY OF HOUSING AND URBAN DEVELOPMENT,
UPON RECEIVING AN APPLICATION FOR HOUSING ASSISTANCE UNDER THE UNITED
STATES HOUSING ACT OF 1937, //ANTE, P. 653.// SECTION 235 OR 236 OF THE
NATIONAL HOUSING ACT, //12 USC 1715Z, 1715Z-1.// OR SECTION 101 OF THE
HOUSING AND URBAN DEVELOPMENT ACT OF 1965, //12 USC 1701S.// OR SECTION
202 OF THE HOUSING ACT OF 1959, //12 USC 1701Q.// IF THE UNIT OF GENERAL
LOCAL GOVERNMENT IN WHICH THE PROPOSED ASSISTANCE IS TO BE PROVIDED HAS
AN APPROVED HOUSING ASSISTANCE PLAN, SHALL--,
(A) NOT LATER THAN TEN DAYS AFTER RECEIPT OF THE APPLICATION,
NOTIFY THE CHIEF EXECUTIVE OFFICER OF SUCH UNIT OF GENERAL LOCAL
GOVERNMENT THAT SUCH APPLICATION IS UNDER CONSIDERATION; AND
(B) AFFORD SUCH UNIT OF GENERAL LOCAL GOVERNMENT THE
OPPORTUNITY, DURING THE THIRTY-DAY PERIOD BEGINNING ON THE DATE OF
SUCH NOTIFICATION, TO OBJECT TO THE APPROVAL OF THE APPLICATION ON
THE GROUNDS THAT THE APPLICATION IS INCONSISTENT WITH ITS HOUSING
ASSISTANCE PLAN.
(2) IF THE UNIT OF GENERAL LOCAL GOVERNMENT OBJECTS TO THE
APPLICATION ON THE GROUNDS THAT IT IS INCONSISTENT WITH ITS HOUSING
ASSISTANCE PLAN, THE SECRETARY MAY ANOT APPROVE THE APPLICATION UNLESS
HE DETERMINES THAT THE APPLICATION IS CONSISTENT WITH SUCH HOUSING
ASSISTANCE PLAN. IF THE SECRETARY DETERMINES, THAT SUCH APPLICATION IS
CONSISTENT WITH THE HOUSING ASSISTANCE PLAN, HE SHALL NOTIFY THE CHIEF
EXECUTIVE OFFICER OF THE UNIT OF GENERAL LOCAL GOVERNMENT OF HIS
DETERMINATION AND THE REASONS THEREFOR IN WRITING. IF THE SECRETARY
CONCURS WITH THE OBJECTION OF THE UNIT OF LOCAL GOVERNMENT, HE SHALL
NOTIFY THE APPLICANT STATING THE REASONS THEREFOR IN WRITING.
(3) IF THE SECRETARY DOES NOT RECEIVE AN OBJECTION BY THE CLOSE OF
THE PERIOD REFERRED TO IN PARAGRAPH (1)(B), HE MAY APPROVE THE
APPLICATION UNLESS HE FINDS IT INCONSISTENT WITH THE HOUSING ASSISTANCE
PLAN. IF THE SECRETARY DETERMINES THAT AN APPLICATION IN INCONSISTENT
WITH A HOUSING ASSISTANCE PLAN, HE SHALL NOTIFY THE APPLICANT STATING
THE REASONS THEREFOR IN WRITING.
(4) THE SECRETARY SHALL MAKE THE DETERMINATIONS REFERRED TO IN
PARAGRAPHS (2) AND (3) WITHIN THIRTY DAYS AFTER HE RECEIVES AN OBJECTION
PURSUANT TO PARAGRAPH (1)(B) OR WITHIN THIRTY DAYS AFTER THE CLOSE OF
THE PERIOD REFERRED TO IN PARAGRAPH (1)(B), WHICHEVER IS EARLIER.
(5) AS USED IN THIS SECTION, THE TERM "HOUSING ASSISTANCE PLAN" MEANS
A HOUSING ASSISTANCE PLAN SUBMITTED AND APPROVED UNDER SECTION 104 OF
THIS ACT OR, IN THE CASE OF A UNIT OF GENERAL LOCAL GOVERNMENT NOT
PARTICIPATING UNDER TITLE I OF THIS ACT, A HOUSING PLAN APPROVED BY THE
SECRETARY AS MEETING THE REQUIREMENTS OF THIS SECTION.
(B) THE PROVISIONS OF SUBSECTION (A) SHALL NOT APPLY TO--,
(1) APPLICATIONS FOR ASSISTANCE INVOLVING 12 OR FEWER UNITS IN
A SINGLE PROJECT OR DEVELOPMENT;
(2) APPLICATIONS FOR ASSISTANCE WITH RESPECT TO HOUSING IN NEW
COMMUNITY DEVELOPMENTS APPROVED UNDER TITLE IV OF THE HOUSING AND
URBAN DEVELOPMENT ACT OF 1968 //42 USC 3901.// OR TITLE VII OF THE
HOUSING AND URBAN DEVELOPMENT ACT OF 1970 //42 USC 4501.// WHICH
THE SECRETARY DETERMINES ARE NECESSARY TO MEET THE HOUSING
REQUIREMENTS UNDER SUCH TITLE; OR
(3) APPLICATIONS FOR ASSISTANCE WITH RESPECT TO HOUSING
FINANCED BY LOANS OR LOAN GUARANTEES FROM A STATE OR AGENCY
THEREOF, EXCEPT THAT THE PROVISIONS OF SUBSECTION (A) SHALL APPLY
WHERE THE UNIT OF GENERAL LOCAL GOVERNMENT IN WHICH THE ASSISTANCE
IS TO BE PROVIDED OBJECTS IN ITS HOUSING ASSISTANCE PLAN TO THE
EXEMPTION PROVIDED BY THIS PARAGRAPH.
(C) FOR AREAS IN WHICH AN APPROVED LOCAL HOUSING ASSISTANCE PLAN IS
NOT APPLICABLE, THE SECRETARY SHALL NOT APPROVE AN APPLICATION FOR
HOUSING ASSISTANCE UNLESS HE DETERMINES THAT THERE IS A NEED FOR SUCH
ASSISTANCE, TAKING INTO CONSIDERATION ANY APPLICABLE STATE HOUSING
PLANS, AND THAT THERE IS OR WILL BE AVAILABLE IN THE AREA PUBLIC
FACILITIES AND SERVICES ADEQUATE TO SERVE THE HOUSING PROPOSED TO BE
ASSISTED. THE SECRETARY SHALL AFFORD THE UNIT OF GENERAL LOCAL
GOVERNMENT IN WHICH THE ASSISTANCE IS TO BE PROVIDED AN OPPORTUNITY,
DURING A 30-DAY PERIOD FOLLOWING RECEIPT OF AN APPLICATION BY HIM, TO
PROVIDE COMMENTS OR INFORMATION RELEVANT TO THE DETERMINATION REQUIRED
TO BE MADE BY THE SECRETARY UNDER THIS SUBSECTION.
(D)(1) IN ALLOCATING FINANCIAL ASSISTANCE UNDER THE PROVISIONS OF LAW
SPECIFIED IN SUBSECTION (A) OF THIS SECTION, THE SECRETARY, SO FAR AS
PRACTICABLE, SHALL CONSIDER THE RELATIVE NEEDS OF DIFFERENT AREAS AND
COMMUNITIES AS REFLECTED IN DATA AS TO POPULATION, POVERTY, HOUSING
OVERCROWDING, HOUSING VACANCIES, AMOUNT OF SUBSTANDARD HOUSING, OR OTHER
OBJECTIVELY MEASURABLE CONDITIONS, SUBJECT TO SUCH ADJUSTMENTS AS MAY BE
NECESSARY TO ASSIST IN CARRYING OUT ACTIVITIES DESIGNED TO MEET LOWER
INCOME HOUSING NEEDS AS DESCRIBED IN APPROVED HOUSING ASSISTANCE PLANS
SUBMITTED BY UNITS OF GENERAL LOCAL GOVERNMENT OR COMBINATIONS OF SUCH
UNITS ASSISTED UNDER SECTION 107(A)(2) OF THIS ACT. THE AMOUNT OF
ASSISTANCE ALLOCATED TO NONMETROPOLITAN AREAS PURSUANT TO THIS SECTION
IN ANY FISCAL YEAR SHALL NOT BE LESS THAN 20 NOR MORE THAN 25 PER CENTUM
OF THE TOTAL AMOUNT OF SUCH ASSISTANCE.
(2) IN ORDER TO FACILITATE THE PROVISION OF, AND LONG-RANGE PLANNING
FOR, HOUSING FOR PERSONS OF LOW- AND MODERATE-INCOME IN NEW COMMUNITY
DDEVELOPMENTS APPROVED UNDER TITLE IV OF THE HOUSING AND URBAN
DEVELOPMENT ACT OF 1968 AND TITLE VII OF THE HOUSING AND URBAN
DEVELOPMENT ACT OF 1970, //42 USC 4501.// THE SECRETARY SHALL RESERVE
SUCH HOUSING ASSISTANCE FUNDS AS HE DEEMS NECESSARY FOR USE IN
CONNECTION WITH SUCH NEW COMMUNITY DEVELOPMENTS.
(3) THE SECRETARY MAY RESERVE SUCH HOUSING ASSISTANCE FUNDS AS HE
DEEMS APPROPRIATE FOR USE BY A STATE OR AGENCY THEREOF.
SEC. 301. TITLE V OF THE NATIONAL HOUSING ACT //12 USC 1430.// IS
AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING NEW SECTION:
"SEC. 525. THE SECRETARY IS AUTHORIZED TO INSURE MORTGAGE PROCEEDS
ADVANCED DURING CONSTRUCTION OR REHABILITATION OR OTHERWISE PRIOR TO
FINAL ENDORSEMENT OF A PROJECT MORTGAGE FOR THE PURPOSE OF (1) FINANCING
IMPROVEMENTS TO THE PROPERTY AND THE PURCHASE OF MATERIALS AND BUILDING
COMPONENTS DEVLIVERED TO THE PROPERTY, AND (2) PROVIDING FUNDS TO COVER
THE COST OF BUILDING COMPONENTS WHERE SUCH COMPONENTS HAVE BEEN
ASSEMBLED AND SPECIVICALLY IDENTIFIED FOR INCORPORATION INTO THE
PROPERTY BUT ARE LOCATED AT A SITE OTHER THAN THE MORTGAGED PROPERTY,
WITH SUCH SECURITY AS THE SECRETARY MAY REQUIRE."
FOUR-FAMILY MORTGAGE INSURANCE PROGRAMS
SEC. 302. (A) SECTION 203(B)(2) OF THE NATIONAL HOUSING ACT //12 USC
1709.// IS AMENDED BY STRIKING OUT "$33,000", "$35,750", AND "$41,250",
WHEREVER THEY APPEAR AND INSERTING IN LIEU THEREOF "$45,000", "$48,750",
AND "$56,000", RESPECTIVELY.
(B) SECTION 220(D)(3)(A) OF SUCH ACT //12 USC 1715K.// IS AMENDED BY
STRIKING OUT "$33,000", "$35,750", AND "$41,250" WHEREVER THEY APPEAR
AND INSERTING IN LIEU THEREOF "$45,000", "$48,750", AND "$56,000",
RESPECTIVELY.
(C) SECTION 221(D)(2)(A) OF SUCH ACT //12 USC 1715L.// IS AMENDED--,
(1) BY STRIKING OUT "$18,000", "$21,000", "$24,000", "$32,400",
AND "$39,600" IN THE MATTER PRECEDING THE FIRST PROVISO AND
INSERTING IN LIEU THEREOF "$21,600", "$25,200", "28,000",
"$38,880", AND "$47,520", RESPECTIVELY; AND
(2) BY STRIKING OUT "$21,000", "$24,000", "$30,000", AND
"$45,600" IN THE SECOND PROVISO AND INSERTING IN LIEU THEREOF
"$25,200", "$28,800", "$36,000", "$46,080", AND "$54,720",
RESPECTIVELY.
(D) SECTION 222(B)(2) OF SUCH ACT //12 USC 1715M.// IS AMENDED BY
STRIKING OUT "$33,000" AND INSERTING IN LIEU THEREOF "$45,000".
(E) SECTION 234(C) OF SUCH ACT //12 USC 1715Y.// IS AMENDED BY
STRIKING OUT "$33,000" AND INSERTING IN LIEU THEREOF $45,000".
SEC. 303. (A)(1) SECTION 207(C)(3) OF THE NATIONAL HOUSING ACT //12
USC 1713.// IS AMENDED BY STRIKING OUT "$9,900", "$13,750", "$16,500",
"$20,350", "$23,100", AND "$2,500" IN THE MATTER PRECEDING THE FIRST
SEMICOLON AND INSERTING IN LIEU THEREOF "$13,000", "$18,000", "$21,500",
"$26,500", "$30,000", AND "$3,250", RESPECTIVELY.
(2) SECTION 207(C)(3) OF SUCH ACT IS FURTHER AMENDED BY STRIKING OUT
"$11,550", "$16,500", "$19,800", "$24,750", AND "$28,050" IN THE MATTER
FOLLOWING THE FIRST SEMICOLON AND INSERTING IN LIEU THEREOF "$15,000",
"21,000", "$25,750"8 "$32,250", AND "$36,465", RESPECTIVELY.
(B)(1) SECTION 213(B)(2) OF SUCH ACT //12 USC 1715E.// IS AMENDED BY
STRIKING OUT "$9,900"8 "$13,750", "$16,500", "$20,350", AND "$23,100" IN
THE MATTER PRECEDING THE FIRST PROVISO AND INSERTING IN LIEU THEREOF
"$13,000", "$18,000", "$21,500", "$26,500", AND "$30,000", RESPECTIVELY.
(2) SECTION 213(B)(2) OF SUCH ACT IS FURTHER AMENDED BY STRIKING OUT
"$11,550", "$16,500", "$19,800", "$24,750", AND "$28,050" IN THE FIRST
PROVISO AND INSERTING IN LIEU THEREOF "$15,000", "$21,000", "$25,750",
"$32,250", AND "$36, 465", RESPECTIVELY.
(C)(1) SECTION 220(D)(3)(B)(III) OF SUCH ACT //12 USC 1715K.// IS
AMENDED BY STRIKING OUT "$9,900", "$13,750", "$16,500", "$20,350", AND
"$23,100" IN THE MATTER PRECEDING, "EXCEPT" WHERE IT FIRST APPEARS AND
INSERTING IN LIEU THEREOF "$13,000", "$18,000", "$21,500", "$26,500",
AND "$30,000", AND "$36,465", RESPECTIVELY.
(D) SECTION 221(D)(3)(II) OF SUCH ACT //12 USC 1715L.// IS AMENDED--,
(A) BY STRIKING OUT "$9,200", "$12,937.50", "$15,525",
"$19,550", AND "$22,137.50" AND INSERTING IN LIEU THEREOF
"$11,240", "$15,540C, "$18,630", "$23,460", AND "$26,570",
RESPECTIVELY; AND
(B) BY STRIKING OUT "$10,925", "$13,500", "$18,400", "$23,000",
AND "$26,162.50" AND INSERTING IN LIEU THEREOF "$13,120",
"$16,200", "$22,080", "$27,600", AND "$32,000", RESPECTIVELY.
(E)(1) SECTION 221(D)(4)(II) OF SUCH ACT IS AMENDED BY STRIKING OUT
"9,200", "$12,937.50", "$15,525", "$19,550", AND "$22,137.50" IN THE
MATTER PRECEDING THE FIRST SEMICOLON AND INSERTING IN LIEU THEREOF
"$12,300", "$17,188", "$20,525", "$24,700", AND "$29,038", RESPECTIVELY.
(2) SECTION 221(D)(4)(II) OF SUCH ACT IS FURTHER AMENDED BY STRIKING
OUT "$10,525", "$15,525", "$18,400", "$23,000", AND "$26,162.50" IN THE
MATTER FOLLOWING THE FIRST SEMICOLON AND INSERTING IN LIEU THEREOF
"$13,975", "$20,025", "$24,350", "$31,500", AND "$34,578", RESPECTIVELY.
(F)(1) SECTION 231(C)(2) OF SUCH ACT //12 USC 1715V.// IS AMENDED BY
STRIKING OUT "$8,800", "$12,375", "$14,850", "$18,700", AND "$21,175" IN
THE MATTER PRECEDING THE FIRST SEMICOLON AND INSERTING IN LIEU THEREOF
"$12,300", "$17,188", "$20,525", "$24,700" AND "$29,038", RESPECTIVELY.
(2) SECTION 231(C)(2) OF SUCH ACT IS FURTHER AMENDED BY STRIKING OUT
"$10,450", "$14,850", "$17,600", "$22,000", AND "$25,025" IN THE MATTER
FOLLOWING THE FIRST SEMICOLON AND INSERTING IN LIEU THEREOF "$13,975",
"$20,025", "$24,350", "$31,500", AND "$34,578", RESPECTIVELY.
(G)(1) SECTION 234(E)(3) OF SUCH ACT IS AMENDED BY STRIKING OUT
"$9,900", "$13,750", "$16,500", "$20,350", AND "$23,100" IN THE MATTER
PRECEDING THE FIRST PROVISO AND INSERTING IN LIEU THEREOF "$13,000",
"$18,000", "$21,500", "$26,500", AND "$30,000", RESPECTIVELY.
(2) SECTION 234(E)(3) OF SUCH ACT //12 USC 1715Y.// IS FURTHER
AMENDED BY STRIKING OUT "$11,550", "$16,500", "$19,800", "$24,750", AND
"$28,050" IN THE FIRST PROVISO AND INSERTING IN LIEU THEREOF "$15,000",
"$21,000", "$25,750", "$32,250", AND "36,465", RESPECTIVELY.
SEC. 304. (A)(1) SECTION 207(C) OF THE NATIONAL HOUSING ACT //12 USC
1713.// IS AMENDED BY STRIKING OUT PARAGRAPH (1).
(2) SECTION 207(C)(3) OF SUCH ACT IS AMENDED BY STRIKING OUT "OR
$1,000,000 PER MORTGAGE FOR TRAILER COURTS OR PARKS".
(B) SECTION 213(B) OF SUCH ACT //12 USC 1715E.// IS AMENDED BY
STRIKING OUT PARAGRAPH (1).
(C) SECTION 213(C) OF SUCH ACT IS AMENDED BY STRIKING OUT "NOT TO
EXCEED $12,500,000 AND".
(D) SECTION 220(D)(3)(B) OF SUCH ACT //12 USC 1715K.// IS AMENDED BY
STRIKING OUT CLAUSE (I).
(E) SECTION 221(D) OF SUCH ACT //12 USC 1715L.// IS AMENDED--,
(1) BY STRIKING OUT CLAUSE (I) IN PARAGRAPH (3); AND
(2) BY STRIKING OUT CLAUSE (I) IN PARAGRAPH (4).
(F) SECTION 231(C) OF SUCH ACT //12 USC 1715V.// IS AMENDED BY
STRIKING OUT PARAGRAPH (1).
(G) SECTION 232(D)(2) OF SUCH ACT //12 USC 1715W.// IS AMENDED BY
STRIKING OUT "NOT TO EXCEED $12,500,000, AND",
(H) SECTION 234(E) OF SUCH ACT //12 USC 1715Y.// IS AMENDED BY
STRIKING OUT PARAGRAPH (1).
(I) SECTION 242(D)(2) OF SUCH ACT //12 USC 1715Z-7.// IS AMENDED BY
STRIKING OUT "NOT TO EXCEED $50,000,000, AND".
(J)(1) SECTION 810(F) OF SUCH ACT //12 USC 1748H-2.// IS AMENDED BY
STRIKING OUT "(1) NOT TO EXCEED $5,000,000 OR (2)".
(2) SECTION 810(G) OF SUCH ACT IS AMENDED BY STRIKING OUT "NOT TO
EXCEED $5,000,000 AND".
(K) SECTION 1002(C) OF SUCH ACT //12 USC 1749BB.// IS AMENDED BY
STRIKING OUT THE SECOND SENTENCE.
(L) SECTION 1101(C) OF SUCH ACT //12 USC 1749AAA.// IS AMENDED BY
STRIKING OUT PARAGRAPH (1).
SEC. 305. TITLE V OF THE NATIONAL HOUSING ACT (AS AMENDED BY SECTION
301 OF THIS ACT) //ANTE, P. 676.// IS AMENDED BY ADDING AT THE END
THEREOF THE FOLLOWING NEW SECTION:
"SEC. 526. THE THE MAXIMUM EXTENT FEASIBLE, THE SECRETARY OF HOUSING
AND URBAN DEVELOPMENT SHALL PROMOTE THE USE OF ENERGY SAVING TECHNIQUES
THROUGH MINIMUM PROPERTY STANDARDS ESTABLISHED BY HIM FOR NEWLY
CONSTRUCTED RESIDENTIAL HOUSING SUBJECT TO MORTGAGES INSURED UNDER THIS
ACT."
SEC. 306. SECTION 518(B) OF THE NATIONAL HOUSING ACT //12 USC
1735B.// IS AMENDED TO READ AS FOLLOWS:
"(BE THE SECRETARY IS AUTHORIZED TO MAKE EXPENDITURES TO CORRECT, OR
TO REIMBURSE THE OWNER FOR THE CORRECTION OF, STRUCTURAL OR OTHER MAJOR
DEFECTS WHICH SO SERIOUSLY AFFECT USE AND LIVABILITY AS TO CREATE A
SERIOUS DANGER TO THE LIFE OR SAFETY OF INHABITANTS OF ANY ONE OR TWO
FAMILY DWELLING WHICH IS COVERED BY A MORTGAGE INSURED UNDER SECTION 235
OF THIS ACT OR WHICH IS LOCATED IN AN OLDER, DECLINING URBAN AREA AND IS
COVERED BY A MORTGAGE INSURED UNDER SECTION 203 OR 221 //12 USC 1709,
1715L.// ON OR AFTER AUGUST 1, 1968, BUT PRIOR TO JANUARY 1, 1973, AND
WHICH IS MORE THAN ONE YEAR OLD ON THE DATE OF THE ISSUANCE OF THE
INSURANCE COMMITMENT, IF (1) THE OWNER REQUESTS ASSISTANCE FROM THE
SECRETARY NOT LATER THAN ONE YEAR AFTER THE INSURANCE OF THE MORTGAGE,
OR, IN THE CASE OF A DWELLING COVERED BY A MORTGAGE INSURED UNDER
SECTION 203 OR 221 THE INSURANCE COMMITMENT FOR WHICH WAS ISSUED ON OR
AFTER AUGUST 1, 1968, BUT PRIOR TO JANUARY 1, 1973, NOT MORE THAN ONE
YEAR AFTER THE DATE OF ENACTMENT OF THE HOUSING AND COMMUNITY
DEVELOPMENT ACT OF 1974, AND (2) THE DEFECT IS ONE THAT EXISTED ON THE
DATE OF THE ISSUANCE OF THE INSURANCE COMMITMENT AND IS ONE THAT A
PROPER INSPECTION COULD REASONABLY BE EXPECTED TO DISCLOSE. THE
SECRETARY MAY REQUIRE FROM THE SELLER OF ANY SUCH DWELLING AN AGREEMENT
TO REIMBURSE HIM FOR ANY PAYMENTS MADE PURSUANT TO THIS SUBSECTION WITH
RESPECT TO SUCH DWELLING. EXPENDITURES PURSUANT TO THIS SUBSECTION
SHALL BE THE OBLIGATION OF THE SPECIAL RISK INSURANCE FUND."
SEC. 307. TITLE II OF THE NATIONAL HOUSING ACT //12 USC 1707.// IS
AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING NEW SECTION:
"SEC. 244. (A) IN ADDITION TO PROVIDING INSURANCE AS OTHERWISE
AUTHORIZED UNDER THIS ACT, AND NOTWITHSTANDING ANY OTHER PROVISION OF
THIS ACT INCONSISTENT WITH THIS SECTION, THE SECRETARY, UPON REQUEST OF
ANY MORTGAGEE AND FOR SUCH MORTGAGE INSURANCE PREMIUM AS HE MAY
PRESCRIBE (WHICH PREMIUM, OR OTHER CHARGES TO BE PAID BY THE MORTGAGOR,
SHALL NOT EXCEED THE PREMIUM, OR OTHER CHARGES, THAT WOULD OTHERWISE BE
APPLICABLE), MAY INSURE AND MAKE A COMMITMENT TO INSURE UNDER ANY
PROVISION OF THIS TITLE ANY MORTGAGE, ADVANCE, OR LOAN OTHERWISE
ELIGIBLE UNDER SUCH PROVISION, PURSUANT TO A CO-INSURANCE CONTRACT
PROVIDING THAT THE MORTGAGEE WILL--,
"(1) ASSUME A PERCENTAGE OF ANY LOSS ON THE INSURED MORTGAGE,
ADVANCE, OR LOAN IN DIRECT PROPORTION TO THE AMOUNT OF THE
CO-INSURANCE, WHICH CO-INSURANCE SHALL NOT BE LESS THAN 10 PER
CENTUM, SUBJECT TO ANY REASONABLE LIMIT OR LIMITS ON THE LIABILITY
OF THE MORTGAGEE THAT MAY BE SPECIFIED IN THE EVENT OF UNUSUAL OR
CATASTROPHIC LOSSES THAT MAY BE INCURRED BY ANY ONE MORTGAGEE;
AND
"(2) CARRY OUT (UNDER A DELEGATION OR OTHERWISE AND WITH OR
WITHOUT COMPENSATION BUT SUBJECT TO AUDIT, EXCEPTION, OR REVIEW
REQUIREMENTS) SUCH CREDIT APPROVAL, APPRAISAL, INSPECTION,
COMMITMENT, PROPERTY DISPOSITION, OR OTHER FUNCTIONS AS THE
SECRETARY, PURSUANT TO REGULATIONS, SHALL APPROVE AS CONSISTENT
WITH THE PURPOSES OF THIS ACT.
ANY CONTRACT OF CO-INSURANCE UNDER THIS SECTION SHALL CONTAIN SUCH
PROVISIONS RELATING TO THE SHARING OF PREMIUMS ON A SOUND ACTUARIAL
BASIS, ESTABLISHMENT OF MORTGAGE RESERVES, MANNER OF CALCULATING
INSURANCE BENEFITS, CONDITIONS WITH RESPECT TO FORECLOSURE, HANDLING AND
DISPOSITION OF PROPERTY PRIOR TO CLAIM OR SETTLEMENT, RIGHTS OF
ASSIGNEES (WHICH MAY ELECT NOT TO BE SUBJECT TO THE LOSS SHARING
PROVISIONS), AND OTHER SIMILAR NATTERS AS THE SECRETARY MAY PRESCRIBE
PURSUANT TO REGULATIONS.
"(B) NO INSURANCE SHALL BE GRANTED PURSUANT TO THIS SECTION WITH
RESPECT TO DWELLING OR PROJECTS APPROVED FOR INSURANCE PRIOR TO THE
BEGINNING OF CONSTRUCTION UNLESS THE INSPECTION OF SUCH CONSTRUCTION IS
CONDUCTED IN ACCORDANCE WITH AT LEAST THE MINIMUM STANDARDS AND CRITERIA
USED WITH RESPECT TO DWELLINGS OR PROJECTS APPROVED FOR MORTGAGE
INSURANCE PURSUANT TO OTHER PROVISIONS OF THIS TITLE.
"(C) NO INSURANCE SHALL BE GRANTED PURSUANT TO THIS SECTION UNLESS
THE SECRETARY HAS, AFTER DUE CONSULTATION WITH THE MORTGAGE LENDING
INDUSTRY, DETERMINED THAT THE DEMONSTRATION PROGRAM OF CO-INSURANCE
AUTHORIZED BY THIS SECTION WILL NOT DISRUPT THE MORTGAGE MARKET OR
REDUCE THE AVAILABILITY OF MORTGAGE CREDIT TO BORROWERS WHO DEPEND UPON
MORTGAGE INSURANCE PROVIDED UNDER THIS ACT.
"(D) NO MORTGAGE, ADVANCE, OR LOAN SHALL BE INSURED PURSUANT TO THIS
SECTION AFTER JUNE 30, 1977, EXCEPT PURSUANT TO A COMMITMENT TO INSURE
MADE BEFORE THAT DATE. THE AGGREGATE PRINCIPAL AMOUNT OF MORTGAGES AND
LOANS INSURED PURSUANT TO THIS SECTION IN ANY FISCAL YEAR BEGINNING ON
OR AFTER JULY 1, 1974, AND ENDING PRIOR TO OCTOBER 1, 1977, SHALL NOT
EXCEED 20 PER CENTUM OF THE AGGREGATE PRINCIPAL AMOUNT OF ALL MORTGAGES
AND LOANS INSURED UNDER THIS TITLE DURING SUCH FISCAL YEAR. THE OVERALL
PERCENTAGE LIMITATION SPECIFIED IN THE PRECEDING SENTENCE SHALL ALSO
APPLY SEPARATELY WITHIN EACH OF THE FOLLOWING CATEGORIES--,
"(1) MORTGAGES AND LOANS COVERING ONE- TO FOUR-FAMILY
DWELLINGS; AND
"(2) MORTGAGES AND LOANS COVERING PROJECTS WITH FIVE OR MORE
DWELLING UNITS.
"(E) THE SECRETARY SHALL NOT WITHDRAW, DENY, OR DELAY INSURANCE
OTHERWISE AUTHORIZED UNDER ANY OTHER PROVISION OF THIS ACT BY REASON OF
THE AVAILABILITY OF INSURANCE PURSUANT TO THIS SECTION. THE SECRETARY
SHALL EXERCISE HIS AUTHORITY UNDER THIS SECTION ONLY TO THE EXTENT THAT
HE FINDS THAT THE CONTINUED EXERCISE OF SUCH AUTHORITY WILL NOT
ADVERSELY AFFECT THE FLOW OF MORTGAGE CREDIT TO OLDER AND DECLINING
NEIGHBORHOODS AND TO THE PURCHASERS OF OLDER AND LOWER COST HOUSING.
"(F) THE SECRETARY SHALL SUBMIT TO THE CONGRESS A REPORT, NOT LATER
THAN MARCH 1, 1975, AND ANNUALLY THEREAFTER, DESCRIBING OPERATIONS UNDER
THIS SECTION, INCLUDING THE EXTENT OF MORTGAGEE PARTICIPATION AND ANY
SPECIAL PROBLEMS ENCOUNTERED, PARTICULARLY WITH RESPECT TO THE FLOW OF
MORTGAGE CREDIT TO OLDER AND DECLINING NEIGHBORHOODS AND TO PURCHASERS
OF OLDER AND LOWER COST HOUSING, AND SETTING FORTH ANY RECOMMENDATIONS
HE MAY DEEM APPROPRIATE WITH RESPECT TO THE CONTINUATION OR MODIFICATION
OF THE AUTHORITY CONTAINED IN THIS SECTION. IF THE SECRETARY SHALL FAIL
TO SUBMIT ANY SUCH REPORT BY THE DATE DUE, HIS AUTHORITY UNDER THIS
SECTION SHALL TERMINATE."
SEC. 308. TITLE II OF THE NATIONAL HOUSING ACT //12 USC 1707.// (AS
AMENDED BY SECTION 307 OF THIS ACT) IS AMENDED BY ADDING AT THE END
THEREOF THE FOLLOWING NEW SECTION:
"SEC. 245. THE SECRETARY MAY INSURE ON AN EXPERIMENTAL BASIS UNDER
ANY PROVISION OF THIS TITLE MORTGAGES AND LOANS WITH PROVISIONS OF
VARYING RATES OF AMORTIZATION CORRESPONDING TO ANTICIPATED VARIATIONS IN
FAMILY INCOME TO THE EXTENT HE DETERMINES SUCH MORTGAGES OF LOANS (1)
HAVE PROMISE FOR EXPANDING HOUSING OPPORTUNITIES OR MEET SPECIAL NEEDS,
(2) CAN BE DEVELOPED TO INCLUDE ANY SAFEGUARDS FOR MORTGAGORS OR
PURCHASERS THAT MAY BE NECESSARY TO OFFSET SPECIAL RISKS OF SUCH
MORTGAGES, AND (3) HAVE A POTENTIAL FOR ACCEPTANCE IN THE PRIVATE
MARKET. THE OUTSTANDING AGGREGATE PRINCIPAL AMOUNT OF MORTGAGES WHICH
ARE INSURED PURSUANT TO THIS SECTION MAY NOT EXCEED 1 PER CENTUM OF THE
OUTSTANDING AGGREGATE PRINCIPAL AMOUNT OF MORTGAGES AND LOANS ESTIMATED
TO BE INSURED DURING ANY FISCAL YEAR UNDER THIS TITLE. A MORTGAGE OR
LOAN MAY NOT BE INSURED PURSUANT TO THIS SECTION AFTER JUNE 30, 1976,
EXCEPT PURSUANT TO A COMMITMENT ENTERED INTO PRIOR TO SUCH DATE."
SEC. 309. (A) SECTION 2(B) OF THE NATIONAL HOUSING ACT //12 USC
1703.// IS AMENDED--,
(1) BY STRIKING OUT "$5,000" IN CLAUSE (1) AND INSERTING IN
LIEU THEREOF "$10,000";
(2) BY STRIKING OUT "IF SUCH OBLIGATION" IN CLAUSE (2) AND ALL
THAT FOLLOWS DOWN THROUGH "THE GENERAL ECONOMY, AND" AND INSERTING
IN LIEU THEREOF THE FOLLOWING: "IF SUCH OBLIGATION HAS A MATURITY
IN EXCESS OF TWELVE YEARS AND THIRTY-TWO DAYS, EXCEPT THAT";
(3) BY STRIKING OUT "TWELVE YEARS AND THIRTY-TWO DAYS (FIFTEEN
YEAR AND THIRTY-TWO DAYS IN THE CASE OF A MOBILE HOME COMPOSED OF
TWO OR MORE MODULES)" IN THE PROVISO IN CLAUSE (2) AND INSERTING
IN LIEU THEREOF "FIFTEEN YEARS AND THIRTY-TWO DAYS"; AND
(4) BY STRIKING OUT "$15,000", "$2,500", AND "SEVEN YEARS" IN
THE THIRD PROVISO IN CLAUSE (3) AND INSERTING IN LIEU THEREOF
"$25,000", "$5,000", AND "TWELVE YEARS", RESPECTIVELY.
(B)(1) SECTION 2(A) OF SUCH ACT //12 USC 1703.// IS AMENDED BY ADDING
AT THE END THEREOF THE FOLLOWING NEW PARAGRAPH:
"ALTERATIONS, REPAIRS, AND IMPROVEMENTS UPON OR IN CONNECTION WITH
EXISTING STRUCTURES MAY INCLUDE THE PROVISION OF FIRE SAFETY EQUIPMENT,
ENERGY CONSERVING IMPROVEMENTS, OR THE INSTALLATION OF SOLAR ENERGY
SYSTEMS. AS USE IN THIS SECTION--,
"(1) THE TERM 'FIRE SAFETY EQUIPMENT' MEANS ANY DEVICE OR
FACILITY WHICH IS DESIGNED TO REDUCE THE RISK OF PERSONAL INJURY
OR PROPERTY DAMAGE RESULTING FROM FIRE AND IS IN CONFORMITY WITH
SUCH CRITERIA AND STANDARDS AS SHALL BE PRESCRIBED BY THE
SECRETARY;
"(2) THE TERM 'ENERGY CONSERVING IMPROVEMENTS' MEANS ANY
ADDITION, ALTERATION, OR IMPROVEMENT TO AN EXISTING OR NEW
STRUCTURE WHICH IS DESIGNED TO REDUCE THE TOTAL ENERGY
REQUIREMENTS OF THAT STRUCTURE, AND WHICH IS IN CONFORMITY WITH
SUCH CRITERIA AND STANDARDS AS SHALL BE PRESCRIBED BY THE
SECRETARY IN CONSULTATION WITH THE NATIONAL BUREAU OF STANDARDS;
AND
"(3) THE TERM 'SOLAR ENERGY SYSTEM' MEANS ANY ADDITION,
ALTERATION, OR IMPROVEMENT TO AN EXISTING OR NEW STRUCTURE WHICH
IS DESIGNED TO UTILIZE SOLAR ENERGY TO REDUCE THE ENERGY
REQUIREMENTS OF THAT STRUCTURE FROM OTHER ENERGY SOURCES, AND
WHICH IS IN CONFORMITY WITH SUCH CRITERIA AND STANDARDS AS SHALL
BE PRESCRIBED BY THE SECRETARY IN CONSULTATION WITH THE NATIONAL
BUREAU OF STANDARDS."
(2) THE FIRST SENTENCE OF SECTION 2(A) OF SUCH ACT IS AMENDED BY
INSERTING BEFORE THE PERIOD AT THE END THEREOF THE FOLLOWING: "OR
FINANCING THE PURCHASE OF A LOT ON WHICH TO PLACE SUCH HOME AND PAYING
EXPENSES REASONABLY NECESSARY FOR THE APPROPRIATE PREPARATION OF SUCH
LOT, INCLUDING THE INSTALLATION OF UTILITY CONNECTIONS, SANITARY
FACILITIES, AND PAVING, AND THE CONSTRUCTION OF A SUITABLE PAD, OR
FINANCING ONLY THE ACQUISITION OF SUCH A LOT EITHER WITH OR WITHOUT SUCH
PREPARATION BY AN OWNER OF A MOBILE HOME.".
(3) SECTION 2(B) OF SUCH ACT IS AMENDED BY ADDING AT THE END THEREOF
THE FOLLOWING NEW SENTENCE: "NOTWITHSTANDING THE FOREGOING LIMITATIONS,
ANY LOAN TO FINANCE FIRE SAFETY EQUIPMENT FOR A NURSING HOME, EXTENDED
HEALTH CARE FACILITY, INTERMEDIATE HEALTH CARE FACILITY, OR OTHER
COMPARABLE HEALTH CARE FACILITY MAY INVOLVE SUCH PRINCIPAL AMOUNT AND
HAVE SUCH MATURITY AS THE SECRETARY MAY PRESCRIBE.".
(C) CLAUSE (I) IN THE FIRST PARAGRAPH OF SECTION 2(A) OF SUCH ACT IS
AMENDED BY INSERTING "OR MOBILE HOMES" IMMEDIATELY AFTER "IN CONNECTION
WITH EXISTING STRUCTURES".
(D) SECTION 2(B) OF SUCH ACT (AS AMENDED BY SUBSECTION (B)(3) OF THIS
SECTION) IS AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING NEW
PARAGRAPHS:
"NOTWITHSTANDING THE LIMITATIONS CONTAINED IN THE FIRST PRIVISO TO
CLAUSE (2) OF THE PRECEDING SENTENCE, A LOAN FINANCING THE PURCHASE OF A
MOBILE HOME AND AN UNDEVELOPED LOT ON WHICH TO PLACE THE HOME SHALL--,
"(A) INVOLVE AN AMOUNT NOT EXCEEDING (I), THE MAXIMUM AMOUNT
UNDER CLAUSE (1) OF THE FIRST PARAGRAPH OF THIS SUBSECTION, AND
(II) SUCH AMOUNT NOT TO EXCEED $5,000 AS MAY BE NECESSARY TO COVER
THE COST OF PURCHASING THE LOT; AND
"(B) HAVE A MATURITY NOT EXCEEDING FIFTEEN YEARS AND THIRTY-TWO
DAYS (TWENTY YEARS AND THIRTY-TWO DAYS IN THE CASE OF A MOBLIE
HOME COMPOSED OF TWO OR MORE MODULES).
"A LOAN FINANCING THE PURCHASE OF A MOBILE HOME AND A SUITABLY
DEVELOPED LOT ON WHICH TO PLACE THE HOME SHALL--,
"(A) INVOLVE AN AMOUNT NOT EXCEEDING (I) THE MAXIMUM AMOUNT
UNDER CLAUSE (1) OF THE FIRST PARAGRAPH OF THIS SUBSECTION, AND
(II) SUCH AMOUNT NOT TO EXCEED $7,500 AS MAY BE NECESSARY TO COVER
THE COST OF PURCHASING THE LOT; AND
"(B) HAVE A MATURITY NOT EXCEEDING FIFTEEN YEARS AND THIRTY-TWO
DAYS (TWENTY YEARS AND THIRTY-TWO DAYS IN THE CASE OF A MOBILE
HOME COMPOSED OF TWO OR MORE MODULES).
"A LOAN FINANCING THE PURCHASE, BY AN OWNER OF A MOBILE MOME WHICH IS
THE PRINCIPAL RESIDENCE OF THAT OWNER, OF ONLY A LOT ON WHICH TO PLACE
THAT MOBILE HOME SHALL--,
"(A) INVOLVE SUCH AN AMOUNT AS MAY BE NECESSARY TO COVER THE
COST OF PURCHASING THE LOT BUT NOT EXCEEDING (I) $5,000 IN THE
CASE OF AN UNDEVELOPED LOT, OR (II) $7,500 IN THE CASE OF A
DEVELOPED LOT; AND
"(B) HAVE A MATURITY NOT EXCEEDING TEN YEARS AND THIRTY-TWO
DAYS.
A MOBILE HOME LOT LOAN MAY BE MADE ONLY IF THE OWNER CERTIFIES THAT HE
WILL PLACE HIS MOBILE HOME ON THE LOT ACQUIRED WITH SUCH LOAN WITHIN SIX
MONTHS AFTER THE DATE OF SUCH LOAN."
(E) THE LAST SENTENCE OF SECTION 3(A) OF THE ACT ENTITLED "AN ACT TO
AMEND CHAPTER 37 OF TITLE 38 OF THE UNITED STATES CODE //38 USC 1801.//
WITH RESPECT TO THE VETERANS' HOME LOAN PROGRAM, TO AMEND THE NATIONAL
HOUSING ACT WITH RESPECT TO INTEREST RATES ON INSURED MORTGAGES, AND FOR
OTHER PURPOSES," APPROVED MAY 7, 1968, AS AMENDED (12 U.S.C. 1709 - 1),
IS AMENDED BY STRIKING OUT ", AND WHICH REPRESENT LOANS AND ADVANCES OF
CREDIT MADE FOR THE PURPOSE OF FINANCING PURCHASES OF MOBILE HOMES,".
SEC. 310. (A) THE FIRST AND SECOND SENTENCES OF SECTION 203(B)(2) OF
THE NATIONAL HOUSING ACT //12 USC 1709.// ARE EACH AMENDED--,
(1) BY STRIKING OUT "$15,000" IN CLAUSE (I) AND INSERTING IN
LIEU THEREOF "$25,000";
(2) BY STRIKING OUT "$15,000" AND "$25,000" IN CLAUSE (II) AND
INSERTING IN LIEU THERE "$25,000" AND "$35,000", RESPECTIVELY;
AND
(3) BY STRIKING OUR "$25,000" IN CLAUSE (III) AND INSERTING IN
LIEU THEREOF "$35,000".
(B) SECTION 220(D)(3)(A)(I) OF SUCH ACT //12 USC 1715K.// IS AMENDED
BY--,
(1) BY STRIKING OUT "$15,000" IN EACH CLAUSE NUMBERED (1) AND
INSERTING IN LIEU THEREOF "$25,000";
(2) BY STRIKING OUT "$15,000" AND "$25,000" IN EACH CLAUSE
NUMBERED (2) AND INSERTING IN LIEU THEREOF "$25,000" AND
"$35,000", RESPECTIVELY; AND
(3) BY STRIKING OUT "$25,000" IN EACH CLAUSE NUMBERED (3) AND
INSERTING IN LIEU THEREOF "$35,000".
(C) SECTION 222(B)(3) OF SUCH ACT //12 USC 1715M.// IS AMENDED TO
READ AS FOLLOWS:
"(3) HAVE A PRINCIPAL OBLIGATION NOT IN EXCESS OF THE SUM OF
(I) 97 PER CENTUM OF $25,000 OF THE APPRAISED VALUE OF THE
PROPERTY AS OF THE DATE OF MORTGAGE IS ACCEPTED FOR INSURANCE,
(II) 90 PER CENTUM OF SUCH VALUE IN EXCESS OF $25,000 BUT NOT IN
EXCESS OF $35,000, AND (III) 80 PER CENTUM OF SUCH VALUE IN EXCESS
OF $35,000; AND".
(D) THAT PART OF CLAUSE (A) OF THE THIRD SENTENCE OF SECTION 234(C)
OF SUCH ACT //12 USC 1715Y.// WHICH BEGINS "AND NOT TO EXCEED" IS
AMENDED TO READ AS FOLLOWS "AND NOT TO EXCEED THE SUM OF (I) 97 PER
CENTUM OF $25,000 OF THE APPRAISED VALUE OF THE PROPERTY AS OF THE DATE
THE MORTGAGE IS ACCEPTED FOR INSURANCE, (II) 90 PER CENTUM OF SUCH VALUE
IN EXCESS OF $25,000 BUT NOT IN EXCESS OF $35,000, (III) 80 PER CENTUM
OF SUCH VALUE IN EXCESS OF $35,000".
SEC. 311. (A) SECTION 223 OF THE NATIONAL HOUSING ACT //12 USC
1715N.// IS AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING NEW
SUBSECTIONS:
"(F) NOTWITHSTANDING ANY OF THE PROVISIONS OF THIS ACT, THE SECRETARY
IS AUTHORIZED, IN HIS DISCRETION, TO INSURE UNDER ANY SECTION OF THIS
TITLE A MORTGAGE EXECUTED IN CONNECTION WITH THE PURCHASE OF REFINANCING
OF AN EXISTING MULTIFAMILY HOUSING PROJECT. IN THE CASE OF REFINANCING
UNDER THIS SUBSECTION OF PROPERTY LOCATED IN AN OLDER, DECLINING URBAN
AREA, THE SECRETARY SHALL PRESCRIBE SUCH TERMS AND CONDITIONS AS HE
DEEMS NECESSARY TO ASSURE THAT--,
"(1) THE REFINANCING IS USED TO LOWER THE MONTHLY DEBT SERVICE
ONLY TO THE EXTENT NECESSARY TO ASSURE THE CONTINUED ECONOMIC
VIABILITY OF THE PROJECT, TAKING INTO ACCOUNT ANY RENT REDUCTIONS
TO BE IMPLEMENTED BY THE MORTGAGOR; AND
"(2) DURING THE MORTGAGE TERM NO RENTAL INCREASES SHALL BE MADE
EXCEPT THOSE WHICH ARE NECESSARY TO OFFSET ACTUAL AND REASONABLE
OPERATING EXPENSE INCREASES OR OTHER NECESSARY EXPENSE INCREASES
APPROVED BY THE SECRETARY.
"(G) NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS ACT, THE SECRETARY
MAY, IN HIS DISCRETION, INSURE A MORTGAGE COVERING A MULTIFAMILY HOUSING
PROJECT INCLUDING UNITS WHICH ARE NOT SELF-CONTAINED."
(B) SECTION 213(B)(2) OF SUCH ACT //12 USC 1715E.// IS AMENDED BY
STRIKING OUT "97 PER CENTUM" AND INSERTING IN LIEU THEREOF "98 PER
CENTUM".
SEC. 312. (A) TITLE XI OF THE NATIONAL HOUSING ACT IS AMENDED--,
(1) BY INSERTING AFTER "UNIT OR ORGANIZATION" IN SECTION 1101
(B)(1) //12 USC 1749AAA.// THE FOLLOWING: "OR OTHER MORTGAGOR";
(2) BY INSERTING AFTER "GROUP PRACTICE FACILITY" IN SECTION
1101(B)(3) THE FOLLOWING: "OR MEDICAL PRACTICE FACILITY";
(3) BY INSERTING AFTER "GROUP PRACTICE FACILITY" IN SECTION
1101(E) THE FOLLOWING: "OR MEDICAL PRACTICE FACILITY";
(4) BY INSERTING AFTER "GROUP PRACTICE FACILITY" IN SECTION
1101(F) THE FOLLOWING: "OR MEDICAL PRACTICE FACILITY";
(5) BY STRIKING OUT IN "(AS DEFINED IN SECTION 1106(1))"
SECTION 1105(A) //12 USC 1749AAA-4.// AND INSERTING IN LIEU
THEREOF "OR MEDICAL PRACTICE FACILITY (AS DEFINED IN SECTION
1106)"; AND
(6) BY REDESIGNATING PARAGRAPHS (2) THROUGH (8) OF SECTION 1106
//12 USC 1749AAA-5.// AS PARAGRAPHS (3) THROUGH (9), RESPECTIVELY,
AND BY INSERTING AFTER PARAGRAPH (1) OF SUCH SECTION THE
FOLLOWING:
"(2) THE TERM 'MEDICAL PRACTICE FACILITY' MEANS AN ADEQUATELY
EQUIPPED FACILITY IN WHICH NOT MORE THAN FOUR PERSONS LICENSED TO
PRACTICE MEDICINE IN THE STATE WHERE THE FACILITY IS LOCATED CAN
PROVIDE, AS MAY BE APPROPRIATE, PREVENTIVE, DIAGNOSTIC, AND TREATMENT
SERVICES, AND WHICH IS SITUATED IN A RURAL AREA OR SMALL TOWN, OR IN A
LOW-INCOME SECTION OF AN URBAN AREA, IN WHICH THERE EXISTS, AS
DETERMINED BY THE SECRETARY, A CRITICAL SHORTAGE OF PHYSICIANS. AS USE
IN THIS PARAGRAPH--,
"(A) THE TERM 'SMALL TOWN' MEANS ANY TOWN, VILLAGE, OR CITY
HAVING A POPULATION OF NOT MORE THAN 10,000 INHABITANTS ACCORDING
TO THE MOST RECENT AVAILABLE DATA COMPILED BY THE BUREAU OF THE
CENSUS; AND
"(B) THE TERM 'LOW-INCOME SECTION OF AN URBAN AREA' MEANS A
SECTION OF A LARGER URBAN AREA IN WHICH THE MEDIAN FAMILY INCOME
IS SUBSTANTIALLY LOWER, AS DETERMINED BY THE SECRETARY, THAN THE
MEDIAN FAMILY INCOME FOR THE AREA AS A WHOLE."
(B) SECTION 1106 OF SUCH ACT //12 USC 1749AAA-5.// IS AMENDED AS
FOLLOWS:
(1) PARAGRAPH (1) IS AMENDED BY INSERTING "OR OSTEOPATHY" AFTER
"PRACTICE MEDICINE", AND BY INSERTING AFTER "STATE" WHERE IT LAST
APPEARS THE FOLLOWING: ", OR, IN THE CASE OF PODIATRIC CARE OR
TREATMENT, IS UNDER THE PROFESSIONAL SUPERVISION OF PERSONS LICENSED TO
PRACTICE PODIATRY IN THE STATE".
(2) PARAGRAPH (2) (AS REDESIGNATED BY SUBSECTION (A)(6) OF THIS
SECTION) IS AMENDED BY INSERTING ", OSTEOPATHY," AFTER "PRACTICE
MEDICINE", AND BY INSERTING AFTER "DENTISTRY IN THE STATE," THE
FOLLOWING: "OR OF PERSONS LICENSED TO PRACTICE PODIATRY IN THE STATE,".
(3) PARAGRAPH (3)(A) (AS SO REDESIGNATED) IS AMENDED BY INSERTING
"OSTEOPATHIC CARE," AFTER "COMPREHENSIVE MEDICAL CARE,", BY STRIKING OUT
"OR" AFTER "OPTOMETRIC CARE,", AND BY INSERTING AFTER "DENTAL CARE," THE
FOLLOWING: "OR PODIATRIC CARE,".
(4) PARAGRAPH (3)(B) (AS SO REDESIGNATED) IS AMENDED BY INSERTING
"OSTEOPATHIC,", AFTER "MEDICAL,", BY STRIKING OUT "OR" AFTER
"OPTOMETRIC.", AND BY INSERTING AFTER "DENTAL" THE FOLLOWING: "OR
PODIATRIC".
SEC. 313. SECTION 241 OF THE NATIONAL HOUSING ACT //12 USC
1715Z-6.// IS AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING NEW
SUBSECTION:
"(D) NOTWITHSTANDING THE FOREGOING, THE SECRETARY MAY INSURE A LOAN
FOR IMPROVEMENTS OR ADDITIONS TO A MULTIFAMILY HOUSING PROJECT, OR A
GROUP PRACTICE OR MEDICAL PRACTICE FACILITY OR HOSPITAL OR OTHER HEALTH
FACILITY APPROVED BY THE SECRETARY, WHICH IS NOT COVERED BY A MORTGAGE
INSURED UNDER THIS ACT, IF HE FINDS THAT SUCH A LOAN WOULD ASSIST IN
PRESERVING, EXPANDING, OR IMPROVING HOUSING OPPORTUNITIES, OR IN
PROVIDING PROTECTION AGAINST FIRE OR OTHER HAZARDS. SUCH LOANS SHALL
HAVE A MATURITY SATISFACTORY TO THE SECRETARY AND SHALL MEET SUCH OTHER
CONDITIONS AS THE SECRETARY MAY PRESCRIBE. IN NO EVENT SHALL SUCH A
LOAN BE INSURED IF IT IS FOR AN AMOUNT IN EXCESS OF THE MAXIMUM AMOUNT
WHICH COULD BE APPROVED IF THE OUTSTANDING INDEBTEDNESS, IF ANY,
COVERING THE PROPERTY WERE A MORTGAGE INSURED UNDER THIS ACT."
SEC. 314. THE FIRST SENTENCE OF SECTION 1002(C) OF THE NATIONAL
HOUSING ACT //12 USC 1749BB.// IS AMENDED TO READ AS FOLLOWS: "THE
PRINCIPAL OBLIGATION OF THE MORTGAGE SHALL NOT EXCEED THE SUM OF 80 PER
CENTUM OF THE SECRETARY'S ESTIMATE OF THE VALUE OF THE LAND BEFORE
DEVELOPMENT AND 90 PER CENTUM OF HIS ESTIMATE OF THE COST OF SUCH
DEVELOPMENT.".
SEC. 315. TITLE II OF THE NATIONAL HOUSING ACT (AS AMENDED BY
SECTIONS 307 AND 308 OF THIS ACT) //ANTE P. 679, 680.// IS AMENDED BY
ADDING AT THE END THEREOF THE FOLLOWING:
"SEC. 246. IN ANY CASE IN WHICH THE SECRETARY SELLS A MULTIFAMILY
HOUSING PROJECT ACQUIRED AS THE RESULT OF A DEFAULT ON A MORTGAGE WHICH
WAS INSURED UNDER THIS ACT TO A COOPERATIVE WHICH WILL OPERATE IT ON A
NONPROFIT BASIS AND RESTRICT PERMANENT OCCUPANCY OF ITS DWELLINGS TO
MEMBERS, THE SECRETARY MAY ACCEPT A PURCHASE MONEY MORTGAGE IN A
PRINCIPAL AMOUNT EQUAL TO THE SUM OF (1) THE APPRAISED VALUE OF THE
PROPERTY AT THE TIME OF PURCHASE, WHICH VALUE SHALL BE BASED UPON A
MORTGAGE AMOUNT ON WHICH THE DEBT SERVICE CAN BE MET FROM THE INCOME OF
THE PROPERTY WHEN OPERATED ON A NONPROFIT BASIS AFTER PAYMENT OF ALL
OPERATING EXPENSES, TAXES, AND REQUIRED RESERVES, AND (2) THE AMOUNT OF
PREPAID EXPENSES AND COSTS INVOLVED IN ACHIEVING COOPERATIVE OWNERSHIP.
PRIOR TO SUCH DISPOSITION OF A PROJECT, FUNDS MAY BE EXPENDED BY THE
SECRETARY FOR NECESSARY REPAIRS AND IMPROVEMENTS."
SEC. 316. (A) SECTION 2(A) OF THE NATIONAL HOUSING ACT //12 USC
1703.// IS AMENDED BY STRIKING OUT "OCTOBER 1, 1974" IN THE FIRST
SENTENCE AND INSERTING IN LIEU THEREOF "JUNE 30, 1977".
(B) SECTION 217 OF SUCH ACT //12 USC 1715H.// IS AMENDED BY STRIKING
OUT "OCTOBER 1, 1974" AND INSERTING IN LIEU THEREOF "JUNE 30, 1977".
(C) SECTION 221(F) OF SUCH ACT //12 USC 1715L.// IS AMENDED BY
STRIKING OUT "OCTOBER 1, 1974" IN THE FIFTH SENTENCE AND INSERTING IN
LIEU THEREOF "JUNE 30, 1977".
(D) SECTION 809(F) OF SUCH ACT //12 USC 1748H-1.// IS AMENDED BY
STRIKING OUT "OCTOBER 1, 1974" IN THE SECOND SENTENCE AND INSERTING IN
LIEU THEREOF "JUNE 30, 1977".
(E) SECTION 810(K) OF SUCH ACT //12 USC 1748H-2.// IS AMENDED BY
STRIKING OUT "OCTOBER 1, 1974" IN THE SECOND SENTENCE AND INSERTING IN
LIEU THEREOF "JUNE 30, 1977".
(F) SECTION 1002(A) OF SUCH ACT //12 USC 1749BB.// IS AMENDED BY
STRIKING OUT "OCTOBER 1, 1974" IN THE SECOND SENTENCE AND INSERTING IN
LIEU THEREOF "JUNE 30, 1977".
(G) SECTION 1101(A) OF SUCH ACT //12 USC 1749AAA.// IS AMENDED BY
STRIKING OUT "OCTOBER 1, 1974" IN THE SECOND SENTENCE AND INSERTING IN
LIEU THEREOF "JUNE 30, 1977".
SEC. 317. SECTION 3(A) OF THE ACT ENTITLED "AN ACT TO AMEND CHAPTER
37 OF TITLE 38 OF THE UNITED STATES CODE //38 USC 1801.// WITH RESPECT
TO THE VETERANS' HOME LOAN PROGRAM, TO AMEND THE NATIONAL HOUSING ACT
WITH RESPECT TO INTEREST RATES ON INSURED MORTGAGES, AND FOR OTHER
PURPOSES", APPROVED MAY 7, 1968, AS AMENDED (12 U.S.C. 1709 - 1), IS
AMENDED BY STRIKING OUT "OCTOBER 1, 1974" AND INSERTING IN LIEU THEREOF
"JUNE 30, 1977".
SEC. 318. SECTION 238 OF THE NATIONAL HOUSING ACT //12 USC
1715Z-3.// IS AMENDED BY ADDING AT THE END THEREOF THE FOLLOWING NEW
SUBSECTION:
"(C) THE SPECIAL RISK INSURANCE FUND MAY BE USED BY THE SECRETARY FOR
CARRYING OUT THE MORTGAGE INSURANCE OBLIGATIONS OF SECTIONS 203 AND 207
TO PROVIDE HOUSING FOR MILITARY PERSONNEL, FEDERAL CIVILIAN EMPLOYEES,
AND FEDERAL CONTRACTOR EMPLOYEES ASSIGNED TO DUTY OR EMPLOYED AT OR IN
CONNECTION WITH ANY INSTALLATION OF THE ARMED FORCES OF THE UNITED
STATES IN FEDERALLY IMPACTED AREAS WHERE, IN THE JUDGMENT OF THE
SECRETARY (1) THE RESIDUAL HOUSING REQUIREMENTS FOR PERSONS NOT
ASSOCIATED WITH SUCH INSTALLATIONS ARE INSUFFICIENT TO SUSTAIN THE
HOUSING MARKET IN THE EVENT OF SUBSTANTIAL CURTAILMENT OF EMPLOYMENT OF
PERSONNEL ASSIGNED TO SUCH INSTALLATIONS, AND (2) THE BENEFITS TO BE
DERIVED FROM SUCH USE OUTWEIGH THE RISK OF POSSIBLE COST TO THE
GOVERNMENT."
SEC. 319. (A) SECTION 221(D)(3) OF THE NATIONAL HOUSING ACT //12 USC
17151.// IS AMENDED BY STRIKING OUT "(AND WHICH CERTIFIES THAT IT IS NOT
RECEIVING FINANCIAL ASSISTANCE FROM THE UNITED STATES EXCLUSIVELY
PURSUANT TO THE UNITED STATES HOUSING ACT OF 1937)" //42 USC 1430.// AND
INSERTING IN LIEU THEREOF "(AND, EXCEPT WITH RESPECT TO A PROJECT
ASSISTED OR TO BE ASSISTED PURSUANT TO SECTION 8 OF THE UNITED STATES
HOUSING ACT OF 1937, //42 USC 1408.// WHICH CERTIFIES THAT IT IS NOT
RECEIVING FINANCIAL ASSISTANCE FROM THE UNITED STATES EXCLUSIVELY TO
SUCH ACT)".
(B) WITH RESPECT TO ANY OBLIGATION SECURED BY A MORTGAGE WHICH IS
INSURED UNDER SECTION 221(D)(3) OF THE NATIONAL HOUSING ACT AND ISSUED
BY A PUBLIC AGENCY AS MORTGAGOR IN CONNECTION WITH THE FINANCING OF A
PROJECT ASSISTED UNDER SECTION 8 OF THE UNITED STATES HOUSING ACT OF
1937, //42 USC 1408.// THE INTEREST PAID ON SUCH OBLIGATION SHALL BE
INCLUDED IN GROSS INCOME FOR PURPOSES OF CHAPTER 1 OF THE INTERNAL
REVENUE CODE OF 1954. //68A STAT. 3, 26 USC 1 ET SEQ.//
SEC. 401. (A) SECTION 701(A) OF THE HOUSING ACT OF 1954 //40 USC
461.// IS AMENDED--,
(1) BY STRIKING OUT "STATE PLANNING AGENCIES" IN PARAGRAPH (1)
AND INSERTING IN LIEU THEREOF "STATES;
(2) BY STRIKING OUT THE NUMBERED PARAGRAPHS FOLLOWING PARAGRAPH
(1) AND INSERTING IN LIEU THEREOF THE FOLLOWING:
"(2) STATES FOR STATE, INTERSTATE, METROPOLITAN, DISTRICT, OR
REGIONAL ACTIVITIES WHICH MAY BE ASSISTED UNDER THIS SECTION;
"(3) CITIES (INCLUDING THE DISTRICT OF COLUMBIA) HAVING
POPULATIONS OF AT LEAST 50,000 ACCORDING TO THE LATEST DECENNIAL
CENSUS FOR LOCAL ACTIVITIES WHICH MAY BE ASSISTED UNDER THIS
SECTION;
"(4) URBAN COUNTIES AS DEFINED UNDER TITLE I OF THE HOUSING AND
COMMUNITY DEVELOPMENT ACT OF 1974;
"(5) THE AREAWIDE ORGANIZATION IN ANY METROPOLITAN AREA WHICH
IS FORMALLY CHARGED WITH CARRYING OUT THE PROVISIONS OF SECTION
204 OF THE DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT
OF 1966 //42 USC 3334.// AND SECTION 401 OF THE INTERGOVERNMENTAL
COOPERATION ACT OF 1968: //42 USC 4231.// PROVIDED, THAT ANY SUCH
AREAWIDE ORGANIZATION, TO THE EXTENT PRACTICABLE, SHALL BE
COMPOSED OF OR RESPONSIBLE TO THE ELECTED OFFICIALS OF THE UNIT OR
UNITS OF GENERAL LOCAL GOVERNMENT FOR THE JURISDICTIONS OF WHICH
THEY ARE EMPOWERED TO CARRY OUT THE PROVISIONS OF SUCH ACTS;
"(6) INDIAN TRIBAL GROUPS OR BODIES; AND
"(7) OTHER GOVERNMENTAL UNITS OR AGENCIES HAVING SPECIAL
PLANNING NEEDS RELATED TO THE PURPOSES OF THIS SECTION, INCLUDING
BUT NOT LIMITED TO INTERSTATE REGIONAL PLANNING COMMISSIONS, AND
UNITS OR AGENCIES FOR DISASTER AREAS, FEDERALLY IMPACTED AREAS,
AND LOCAL DEVELOPMENT DISTRICTS, TO THE EXTENT THESE NEEDS CANNOT
OTHERWISE BE ADEQUATELY MET."; AND
(3) BY STRIKING OUT THE PART WHICH FOLLOWS THE NUMBERED
PARAGRAPHS AND INSERTING IN LIEU THEREOF THE FOLLOWING:
"ACTIVITIES ASSISTED UNDER THIS SECTION SHALL, TO THE MAXIMUM EXTENT
FEASIBLE, COVER ENTIRE AREAS HAVING COMMON OR RELATED DEVELOPMENT
PROBLEMS. THE SECRETARY SHALL ENCOURAGE COOPERATION IN PREPARING AND
CARRYING OUT PLANS AMONG ALL INTERESTED MUNICIPALITIES, POLITICAL
SUBDIVISIONS, PUBLIC AGENCIES, AND OTHER PARTIES IN ORDER TO ACHIEVE
COORDINATED DEVELOPMENT OF ENTIRE AREAS. TO THE MAXIMUM EXTENT
FEASIBLE, PERTINENT PLANS AND STUDIES ALREADY MADE FOR AREAS SHALL BE
UTILIZED SO AS TO AVOID UNNECESSARY REPETITION OF EFFORT AND EXPENSE."
(B) SECTION 701 OF SUCH ACT IS FURTHER AMENDED BY STRIKING OUT ALL
THAT FOLLOWS SUBSECTION (A) AND INSERTING IN LIEU THEREOF THE FOLLOWING:
"(B) ACTIVITIES WHICH MAY BE ASSISTED UNDER THIS SECTION INCLUDE
THOSE NECESSARY (1) TO DEVELOP AND CARRY OUT A COMPREHENSIVE PLAN AS
PART OF AN ONGOING PLANNING PROCESS, (2) TO DEVELOP AND IMPROVE THE
MANAGEMENT CAPABILITY TO IMPLEMENT SUCH PLAN OR PART THEREOF OR RELATED
PLANS OR PLANNING, AND (3) TO DEVELOP A POLICY-PLANNING-EVALUATION
CAPACITY SO THAT THE RECIPIENT MAY MORE RATIONALLY (A) DETERMINE ITS
NEEDS, (B) SET LONG-TERM GOALS AND SHORT-TERM OBJECTIVES, (C) DEVISE
PROGRAMS AND ACTIVITIES TO MEET THESE GOALS AND OBJECTIVES, AND (D)
EVALUATE THE PROGRESS OF SUCH PROGRAMS IN ACCOMPLISHING THOSE GOALS AND
OBJECTIVES. ACTIVITIES ASSISTED UNDER THIS SECTION SHALL BE CARRIED OUT
BY PROFESSIONALLY COMPETENT PERSONS.
"(C) EACH RECIPIENT OF ASSISTANCE UNDER THIS SECTION SHALL CARRY OUT
AN ONGOING COMPREHENSIVE PLANNING PROCESS WHICH SHALL MAKE PROVISION FOR
CITIZEN PARTICIPATION PURSUANT TO REGULATIONS OF THE SECRETARY WHERE
MAJOR PLANS, POLICIES, PRIORITIES, OR OBJECTIVES ARE BEING DETERMINED.
THE PROCESS SHALL INVOLVE DEVELOPMENT AND SUBSEQUENT MODIFICATIONS OF A
COMPREHENSIVE PLAN WHICH SHALL BE REVIEWED AT LEAST BIENNIALLY FOR
NECESSARY OR DESIRABLE AMENDMENTS. ANY SUCH PLAN SHALL INCLUDE, AS A
MINIMUM, EACH OF THE FOLLOWING ELEMENTS:
"(1) A HOUSING ELEMENT WHICH SHALL TAKE INTO ACCOUNT ALL
AVAILABLE EVIDENCE OF THE ASSUMPTIONS AND STATISTICAL BASES UPON
WHICH THE PROJECTION OF ZONING, COMMUNITY FACILITIES, AND
POPULATION GROWTH IS BASED, SO THAT THE HOUSING NEEDS OF BOTH THE
REGION AND THE LOCAL COMMUNITIES STUDIED IN THE PLANNING WILL BE
ADEQUATELY COVERED IN TERMS OF EXISTING AND PROSPECTIVE POPULATION
GROWTH. THE DEVELOPMENT AND FORMULATION OF STATE AND LOCAL GOALS
PURSUANT TO TITLE XVI OF THE HOUSING AND URBAN DEVELOPMENT ACT OF
1968 //42 USC 1441A.// SHALL BE A PART OF SUCH A HOUSING ELEMENT.
"(2) A LAND-USE ELEMENT WHICH SHALL INCLUDE (A) STUDIES,
CRITERIA, STANDARDS, AND IMPLEMENTING PROCEDURES NECESSARY FOR
EFFECTIVELY GUIDING AND CONTROLLING MAJOR DECISIONS AS TO WHERE
GROWTH SHALL TAKE PLACE WITHIN THE RECIPIENT'S BOUNDARIES, AND (B)
AS A GUIDE FOR GOVERNMENTAL POLICIES AND ACTIVITIES, GENERAL PLANS
WITH RESPECT TO THE PATTERN AND INTENSITY OF LAND USE FOR
RESIDENTIAL, COMMERCIAL, INDUSTRIAL, AND OTHER ACTIVITIES.
EACH OF THE ELEMENTS SET FORTH ABOVE SHALL SPECIFY (I) BROAD GOALS AND
ANNUAL OBJECTIVES (IN MEASURABLE TERMS WHEREVER POSSIBLE), (II) PROGRAMS
DESIGNED TO ACCOMPLISH THESE OBJECTIVES, AND (III) PROCEDURES, INCLUDING
CRITERIA SET FORTH IN ADVANCE, FOR EVALUATING PROGRAMS AND ACTIVITIES TO
DETERMINE WHETHER THEY ARE MEETING OBJECTIVES. SUCH ELEMENTS SHALL BE
CONSISTENT WITH EACH OTHER AND CONSISTENT WITH STATED NATIONAL GROWTH
POLICY.
"(D) AFTER AN INITIAL APPLICATION FOR ASSISTANCE UNDER THIS SECTION
HAS BEEN APPROVED, THE SECRETARY MAY MAKE GRANTS ON AN ANNUAL BASIS,
IF--,
"(1) THE APPLICANT SUBMITS TO THE SECRETARY ANNUALLY A
DESCRIPTION OF ITS WORK PROGRAM DESIGNED TO MEET OBJECTIVES FOR
THE NEXT SUCCEEDING ONE-YEAR PERIOD AND SETTING FORTH ANY CHANGES
THE APPLICANT INTENDS TO UNDERTAKE TO ACHIEVE BETTER PROGRESS;
AND
"(2) THE APPLICANT SUBMITS TO THE SECRETARY BIENNALLY (A) AN
EVALUATION OF THE PROGRESS MADE BY IT DURING THE PREVIOUS TWO
YEARS IN MEETING OBJECTIVES SET FORTH IN ITS PLAN, AND (B) A
DESCRIPTION OF ANY CHANGES IN THE PLAN'S GOALS OR OBJECTIVES.
THE SECRETARY SHALL MAKE NO GRANT AFTER THREE YEARS FROM THE DATE OF
ENACTMENT OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974, TO ANY
APPLICANT (OTHER THAN AN APPLICANT DESCRIBED IN PARAGRAPH (6) OR (7) OF
SUBSECTION (A)), UNLESS THE SECRETARY IS SATISFIED THAT THE
COMPREHENSIVE PLANNING BEING CARRIED OUT BY THE APPLICANT INCLUDES THE
ELEMENTS SPECIFIED IN PARAGRAPHS (1) AND (2) OF SUBSECTION (C).
"(E) A GRANT MADE UNDER THIS SECTION SHALL NOT EXCEED TWO-THIRDS OF
THE ESTIMATED COST OF THE WORK FOR WHICH THE GRANT IS MADE. THERE ARE
AUTHORIZED TO BE APPROPRIATED FOR THE PURPOSES OF THIS SECTION NOT TO
EXCEED $130,000,000 FOR THE FISCAL YEAR 1975, AND NOT TO EXCEED
$150,000,000 FOR THE FISCAL YEAR 1976. OF THE FUNDS APPROPRIATED UNDER
THIS SECTION, NOT TO EXCEED AN AGGREGATE OF $10,000,000 PLUS 5 PER
CENTUM OF THE FUNDS SO APPROPRIATED MAY BE USED BY THE SECRETARY FOR
SUTDIES, RESEARCH, AND DEMONSTRATION PROJECTS, UNDERTAKEN INDEPENDENTLY
OR BY CONTRACT, FOR THE DEVELOPMENT AND IMPROVEMENT FO TECHNIQUES AND
METHODS FOR COMPREHENSIVE PLANNING AND FOR THE ADVANCEMENT OF THE
PURPOSES OF THIS SECTION, AND FOR GRANTS TO ASSIST IN THE CONDUCT OF
STUDIES AND RESEARCH RELATING TO NEEDED REVISIONS IN STATE STATUTES
WHICH CREATE, GOVERN, OR CONTROL LOCAL GOVERNMENTS AND LOCAL
GOVERNMENTAL OPERATIONS.
"(F) IT IS THE FURTHER INTENT OF THIS SECTION TO ENCOURAGE
COMPREHENSIVE PLANNING ON A UNIFIED BASIS FOR STATES, CITIES, COUNTIES,
METROPOLITAN AREAS, DISTRICTS, REGIONS, AND INDIAN RESERVATIONS AND THE
ESTABLISHMENT AND DEVELOPMENT OF THE ORGANIZATIONAL UNITS NEEDED
THEREFOR. IN EXTENDING FINANCIAL ASSISTANCE UNDER THIS SECTION, THE
SECRETARY MAY REQUIRE SUCH ASSURANCES AS HE DEEMS ADEQUATE THAT THE
APPROPRIATE STATE AND LOCAL AGENCIES ARE MAKING REASONABLE PROGRESS IN
THE DEVELOPMENT OF THE ELEMENTS OF COMPREHENSIVE PLANNING. THE
SECRETARY IS AUTHORIZED BY CONTRACT, GRANT, OR OTHERWISE TO PROVIDE
TECHNICAL ASSISTANCE TO STATE AND LOCAL GOVERNMENTS, AND INTERSTATE AND
REGIONAL COMBINATIONS THEREOF, TO INDIAN TRIBAL BODIES, AND TO
GOVERNMENTAL UNITS OR AGENCIES DESCRIBED IN SUBSECTION (A)(7),
UNDERTAKING SUCH PLANNING AND, BY CONTRACT OR OTHERWISE, TO MAKE STUDIES
AND PUBLISH INFORMATION ON COMPREHENSIVE PLANNING AND RELATED MANAGEMENT
PROBLEMS.
"(G) THE CONSENT OF THE CONGRESS IS HEREBY GIVEN TO ANY TWO OR MORE
STATES TO ENTER INTO AGREEMENTS OR COMPACTS, NOT IN CONFLICT WITH ANY
LAW OF THE UNITED STATES, COOPERATIVE EFFORT AND MUTUAL ASSISTANCE IN
THE COMPREHENSIVE PLANNING FOR THE GROWTH AND DEVELOPMENT OF INTERSTATE,
METROPOLITAN, OR OTHER URBAN AREAS, AND TO ESTABLISH SUCH AGENCIES,
JOINT OR OTHERWISE, AS THEY MAY DEEM DESIRABLE FOR MAKING EFFECTIVE SUCH
AGREEMENTS AND COMPACTS.
"(H) IN ADDITION TO THE PLANNING GRANTS AUTHORIZED BY SUBSECTION (A),
THE SECRETARY IS FURTHER AUTHORIZED TO MAKE GRANTS TO ORGANIZATIONS
COMPOSED OF PUBLIC OFFICIALS REPRESENTATIVE OF THE POLITICAL
JURISDICTIONS WITHIN THE METROPOLITAN AREA, REGION, OR DISTRICT INVOLVED
FOR THE PURPOSE OF ASSISTING SUCH ORGANIZATIONS TO UNDERTAKE STUDIES,
COLLECT DATA, DEVELOP METROPOLITAN, REGIONAL, AND DISTRICT PLANS AND
PROGRAMS, AND ENGAGE IN SUCH OTHER ACTIVITIES, INCLUDING IMPLEMENTATION
OF SUCH PLANS, AS THE SECRETARY FINDS NECESSARY OR DESIRABLE FOR THE
SOLUTION OF THE METROPOLITAN, REGIONAL, OR DISTRICT PROBLEMS IN SUCH
AREAS, REGIONS, OR DISTRICTS. TO THE MAXIMUM EXTENT FEASIBLE, ALL
GRANTS UNDER THIS SUBSECTION SHALL BE FOR ACTIVITIES RELATING TO ALL THE
DEVELOPMENTAL ASPECTS OF THE TOTAL METROPOLITAN AREA, REGION, OR
DISTRICT INCLUDING, BUT NOT LIMITED TO, LAND USE, TRANSPORTATION,
HOUSING, ECONOMIC DEVELOPMENT, NATURAL RESOURCES DEVELOPMENT, COMMUNITY
FACILITIES, AND THE GENERAL IMPROVEMENT OF LIVING ENVIRONMENTS.
"(I) IN ADDITION TO THE OTHER GRANTS AUTHORIZED BY THIS SECTION, THE
SECRETARY IS AUTHORIZED TO MAKE GRANTS TO ASSIST ANY CITY, OTHER
MUNICIPALITY, OR COUNTY IN MAKING A SURVEY OF THE STRUCTURES AND SITES
IN THE LOCALITY WHICH ARE DETERMINED BY ITS APPROPRIATE AUTHORITIES TO
BE OF HISTORIC OR ARCHITECTURAL VALUE. ANY SUCH SURVEY SHALL BE
DESIGNED TO IDENTIFY THE HISTORIC STRUCTURES AND SITES IN THE LOCALITY,
DETERMINE THE COST OF THEIR REHABILITATION OR RESTORATION, AND PROVIDE
SUCH OTHER INFORMATION AS MAY BE NECESSARY OR APPROPRIATE TO SERVE AS A
FOUNDATION FOR A BALANCED AND EFFECTIVE PROGRAM OF HISTORIC PRESERVATION
IN SUCH LOCALITY. THE ASPECTS OF ANY SUCH SURVEY WHICH RELATE TO THE
IDENTIFICATION OF HISTORIC AND ARCHITECTURAL VALUES SHALL BE COMPARABLE
TO THOSE USED IN ESTABLISHING THE NATIONAL REGISTER MAINTAINED BY THE
SECRETARY OF THE INTERIOR UNDER OTHER PROVISIONS OF LAW; AND THE
RESULTS OF EACH SUCH SURVEY SHALL BE MADE AVAILABLE TO THE SECRETARY OF
THE INTERIOR. A GRANT UNDER THIS SUBSECTION SHALL BE MADE TO THE
APPROPRIATE AGENCY OR ENTITY SPECIFIED IN PARAGRAPHS (1) THROUGH (6) OF
SUBSECTION (A) OR, IF THERE IS NO SUCH AGENCY OR ENTITY WHICH IS
QUALIFIED AND WILLING TO RECEIVE THE GRANT AND PROVIDE FOR ITS
UTILIZATION IN ACCORDANCE WITH THIS SUBSECTION, DIRECTLY TO THE CITY,
OTHER MUNICIPALITY, OR COUNTY INVOLVED.
"(J) GRANTS MADE UNDER THIS SECTION MAY BE USED, SUBJECT TO
REGULATIONS AND CONDITIONS PRESCRIBED BY THE SECRETARY, FOR ANY
ACTIVITIES MADE ELIGIBLE BY THE PROVISIONS OF THIS SECTION; BUT SUCH
REGULATIONS SHALL PROVIDE THAT GRANT ASSISTANCE SHALL NOT BE USED TO
DEFRAY THE COST OF THE ACQUISITION, CONSTRUCTION, REPAIR, OR
REHABILITATION OF, OR THE PREPARATION OF ENGINEERING DRAWINGS OR SIMILAR
DETAILED SPECIFICATIONS FOR, SPECIFIC HOUSING, CAPITAL FACILITIES, OR
PUBLIC WORKS PROJECTS.
"(K) THE SECRETARY SHALL CONSULT WITH THE HEADS OF OTHER FEDERAL
DEPARTMENTS AND AGENCIES HAVING RESPONSIBILITIES RELATED TO THE PURPOSES
OF THIS SECTION, INCLUDING RESPONSIBILITIES CONNECTED WITH THE ECONOMIC
DEVELOPMENT OF RURAL AND DEPRESSED AREAS AND THE PROTECTION AND
ENHANCEMENT OF THE NATION'S NATURAL ENVIRONMENT, WITH RESPECT TO (1)
GENERAL STANDARDS, POLICIES, AND PROCEDURES TO BE FOLLOWED IN THE
ADMINISTRATION OF THIS SECTION, AND (2) PARTICULAR GRANT ACTIONS OR
APPROVALS WHICH THE SECRETARY BELIEVES TO BE OF SPECIAL INTEREST OR
CONCERN TO ONE OR MORE OF SUCH DEPARTMENTS AND AGENCIES.
"(1) FUNDS MADE AVAILABLE UNDER ANY FEDERAL ASSISTANCE PROGRAM FOR
PROJECTS OR ACTIVITIES, APPROVED AS PART OF OR IN FURTHERANCE OF A
PLANNING PROGRAM OR RELATED MANAGEMENT ACTIVITIES ASSISTED UNDER THIS
SECTION, MAY BE USED JOINTLY WITH FUNDS MADE AVAILABLE FOR SUCH PROJECTS
OR ACTIVITIES UNDER ANY OTHER FEDERAL ASSISTANCE PROGRAM, SUBJECT TO
REGULATIONS PRESCRIBED BY THE PRESIDENT. SUCH RELATIONS MAY INCLUDE
PROVISIONS FOR COMMON TECHNICAL OR ADMINISTRATIVE REQUIREMENTS WHERE
VARYING OR CONFLICTING PROVISIONS OF LAW OR REGULATIONS WOULD OTHERWISE
APPLY, FOR ESTABLISHING JOINT MANAGEMENT FUNDS AND COMMON NON-FEDERAL
SHARES, AND FOR SPECIAL AGREEMENTS OR DELEGATIONS OF AUTHORITY, AMONG
DIFFERENT FEDERAL AGENCIES IN CONNECTION WITH THE SUPERVISION OR
ADMINISTRATION OF ASSISTANCE. SUCH REGULATIONS SHALL IN ANY CASE
INCLUDE APPROPRIATE CRITERIA AND PROCEDURES TO ASSURE THAT ANY SPECIAL
AUTHORITIES CONFERRED, WHICH ARE NOT OTHERWISE PROVIDED FOR BY LAW,
SHALL BE EMPLOYED ONLY AS NECESSARY TO PROMOTE EFFECTIVE AND EFFICIENT
ADMINISTRATION AND IN A MANNER CONSISTENT WITH THE PROTECTION OF THE
FEDERAL INTEREST AND PROGRAM PURPOSES OR STATUTORY REQUIREMENTS OF A
SUBSTANTIVE NATURE. FOR PURPOSES OF THIS SUBSECTION, THE TERM 'FEDERAL
ASSISTANCE PROGRAM' HAS THE SAME MEANING AS IN THE INTERGOVERNMENTAL
COOPERATION ACT OF 1968. //42 USC 4201 NOTE.//
"(M) AS USED IN THIS SECTION--,
"(1) THE TERM 'METROPOLITAN AREA' MEANS A STANDARD METROPOLITAN
STATISTICAL AREA, AS ESTABLISHED BY THE OFFICE OF MANAGEMENT AND
BUDGET, SUBJECT, HOWEVER, TO SUCH MODIFICATIONS OR EXTENSIONS AS
THE SECRETARY DEEMS TO BE APPROPRIATE FOR THE PURPOSES OF THIS
SECTION
"(2) THE TERM 'REGION' INCLUDES (A) ALL OR PART OF THE AREA OF
JURISDICTION OF ONE OR MORE UNITS OF GENERAL LOCAL GOVERNMENT, AND
(B) ONE OR MORE METROPOLITAN AREAS.
"(3) THE TERM 'DISTRICT' INCLUDES ALL OR PART OF THE AREA OF
JURISDICTION OF (A) ONE OR MORE COUNTIES, AND (B) ONE OR MORE
OTHER UNITS OF GENERAL LOCAL GOVERNMENT, BUT DOES NOT INCLUDE ANY
PORTION OF A METROPOLITAN AREA.
"(4) THE TERM 'COMPREHENSIVE PLANNING' INCLUDES THE
FOLLOWING:
"(A) PREPARATION, AS A GUIDE FOR GOVERNMENTAL POLICIES AND
ACTION, OF GENERAL PLANS WITH RESPECT TO (I) THE PATTERN AND
INTENSITY OF LAND USE, (II) THE PROVISION OF PUBLIC FACILITIES
(INCLUDING TRANSPORTATION FACILITIES) AND OTHER GOVERNMENT
SERVICES, AND (III) THE EFFECTIVE DEVELOPMENT AND UTILIZATION OF
HUMAN AND NATURAL RESOURCES;
"(B) IDENTIFICATION AND EVALUATION OF AREA NEEDS (INCLUDING
HOUSING , EMPLOYMENT, EDUCATION, AND HEALTH) AND FORMULATION OF
SPECIFIC PROGRAMS FOR MEETING THE NEEDS SO IDENTIFIED;
"(C) SURVEYS OF STRUCTURES AND SITES WHICH ARE DETERMINED BY
THE APPROPRIATE AUTHORITIES TO BE OF HISTORIC OR ARCHITEC- TURAL
VALUE;
"(D) LONG-RANGE PHYSICAL AND FISCAL PLANS FOR SUCH ACTION;
"(E) PROGRAMING OF CAPITAL IMPROVEMENTS AND OTHER MAJOR
EXPENDITURES, BASED ON A DETERMINATION OF RELATIVE URGENCY,
TOGETHER WITH DEFINITE FINANCING PLANS FOR SUCH EXPENDITURES IN
THE EARLIER YEARS OF THE PROGRAM;
"(F) COORDINATION OF ALL RELATED PLANS AND ACTIVITIES OF THE
STATE AND LOCAL GOVERNMENTS AND AGENCIES CONCERNED; AND
"(G) PREPARATION OF REGULATORY AND ADMINISTRATIVE MEAS- URES IN
SUPPORT OF THE FOREGOING. COMPREHENSIVE PLANNING FOR THE PURPOSE
OF DISTRICTS SHALL NOT INCLUDE PLANNING FOR OR ASSISTANCE TO
ESTABLISHMENTS IN RELOCATING FROM ONE AREA TO ANOTHER OR ASSIST
CONTRACTORS OR SUBCONTRACTORS WHOSE PURPOSE IS TO DIVEST, OR WHOSE
ECONOMIC SUCCESS IS DEPENDENT UPON DISVESTING, OTHER CONTRACTORS
OR SUBCONTRACTORS OF CONTRACTS THERETOFORE CUSTOMARILY PERFORMED
BY THEM. THE LIMITATION SET FORTH IN THE PRECEDING SENTENCE SHALL
NOT BE CONSTRUED TO PROHIBIT ASSISTANCE FOR THE EXPANSION OF AN
EXISTING BUSINESS ENTITY THROUGH THE ESTABLISHMENT OF A NEW
BRANCH, AFFILIATE, OR SUBSIDIARY OF SUCH ENTITY, IF THE SECRETARY
FINDS THAT THE ESTABLISHMENT OF SUCH BRANCH, AFFILIATE, OR
SUBSIDIARY WILL NOT RESULT IN AN INCREASE IN UNEMPLOYMENT IN THE
AREA OF ORIGINAL LOCATION OR IN ANY OTHER AREA WHERE SUCH ENTITY
CONDUCTS BUSINESS OPERATIONS, UNLESS THE SECRETARY HAS REASON TO
BELIEVE THAT SUCH BRANCH, AFFILIATE, OR SUBSIDIARY IS BEING
ESTABLISHED WITH THE INTENTION OF CLOSING DOWN THE OPERATIONS OF
THE EXISTING BUSINESS ENTITY IN THE AREA OF ITS ORIGINAL LOCATION
OR IN ANY OTHER AREA WHERE IT CONDUCTS SUCH OPERATIONS.
"(N) IN CARRYING OUT THE PROVISIONS OF THIS SECTION RELATING TO
PLANNING FOR STATES, REGIONS, OR OTHER MULTIJURISDICTIONAL AREAS WHOSE
DEVELOPMENT HAS SIGNIFICANCE FOR PURPOSES OF NATIONAL GROWTH AND URBAN
DEVELOPMENT OBJECTIVES, THE SECRETARY SHALL ENCOURAGE THE FORMULATION OF
PLANS AND PROGRAMS WHICH WILL INCLUDE THE STUDIES, CRITERIA, STANDARDS,
AND IMPLEMENTING PROCEDURES NECESSARY FOR EFFECTIVELY GUIDING AND
CONTROLLING MAJOR DECISIONS AS TO WHERE GROWTH SHOULD TAKE PLACE WITHIN
SUCH STATES, REGIONS, OR AREAS. SUCH PLANS AND PROGRAMS SHALL TAKE
ACCOUNT OF THE AVAILABILITY OF AND NEED FOR CONSERVING LAND AND OTHER
IRREPLACEABLE NATURAL RESOURCES; OF PROJECTED CHANGES IN SIZE,
MOVEMENT, AND COMPOSITION OF POPULATION; OF THE NECESSITY FOR EXPANDING
HOUSING AND EMPLOYMENT OPPORTUNITIES; OF THE OPPORTUNITIES,
REQUIREMENTS, AND POSSIBLE LOCATIONS FOR NEW COMMUNITIES AND LARGE-SCALE
PROJECTS FOR EXPANDING OR REVITALIZING EXISTING COMMUNITIES; AND OF THE
NEED FOR METHODS OF ACHIEVING MODERNIZATION, SIMPLIFICATION, AND
IMPROVEMENTS IN GOVERNMENTAL STRUCTURES, SYSTEMS, AND PROCEDURES RELATED
TO GROWTH OBJECTIVES. IF THE SECRETARY DETERMINES THAT ACTIVITIES
OTHERWISE ELIGIBLE FOR ASSISTANCE UNDER THIS SECTION ARE NECESSARY TO
THE DEVELOPMENT OR IMPLEMENTATION OF SUCH PLANS AND PROGRAMS, HE MAY
MAKE GRANTS IN SUPPORT OF SUCH ACTIVITIES TO ANY GOVERNMENTAL AGENCY OR
ORGANIZATION OF PUBLIC OFFICIALS WHICH HE DETERMINES IS CAPABLE OF
CARRYING OUT THE PLANNING WORK INVOLVED IN AN EFFECTIVE AND EFFICIENT
MANNER AND MAY MAKE SUCH GRANTS IN AN AMOUNT EQUAL TO NOT MORE THAN 80
PER CENTUM OF THE COST OF SUCH ACTIVITIES."
(C) SECTION 703 OF SUCH ACT //40 USC 460.// IS AMENDED BY STRIKING
OUT "AND" IN CLAUSE (1), AND BY INSERTING ", AND THE TRUST TERRITORY OF
THE PACIFIC ISLANDS" IMMEDIATELY BEFORE THE SEMICOLON AT THE END OF SUCH
CLAUSE.
SEC. 402. (A) SECTION 801(B) OF THE HOUSING AND URBAN DEVELOPMENT
ACT OF 1964 //20 USC 801.// IS AMENDED TO READ AS FOLLOWS:
"(B) IT IS THE PURPOSE OF THIS TITLE TO PROVIDE FELLOWSHIPS FOR THE
GRADUATE TRAINING OF PROFESSIONAL CITY AND REGIONAL PLANNING,
MANAGEMENT, AND HOUSING SPECIALISTS, AND PROFESSIONALLY TRAINED
PERSONNEL WITH A GENERAL CAPACITY IN URBAN AFFAIRS AND PROBLEMS: TO
MAKE GRANTS TO AND CONTRACTS WITH INSTITUTIONS OF HIGHER EDUCATION (OR
COMBINATIONS OF SUCH INSTITUTIONS) TO ASSIST THEM IN PLANNING,
DEVELOPING, STRENGTHENING, IMPROVING, OR CARRYING OUT PROGRAMS OR
PROJECTS FOR THE PREPARATION OF GRADUATE OR PROFESSIONAL STUDENTS TO
ENTER THE PUBLIC SERVICE; AND TO ASSIST AND ENCOURAGE THE STATES AND
LOCALITIES, IN COOPERATION WITH PUBLIC AND PRIVATE UNIVERSITIES AND
COLLEGES AND URBAN CENTERS AND WITH BUSINESS FIRMS AND ASSOCIATIONS,
LABOR UNIONS, AND OTHER INTERESTED ASSOCIATIONS AND ORGANIZATIONS, TO
(1) ORGANIZE, INITIATE, DEVLEOP, AND EXPAND PROGRAMS WHICH WILL PROVIDE
SPECIAL TRAINING IN SKILLS NEEDED FOR ECONOMIC AND EFFICIENT COMMUNITY
DEVELOPMENT TO THOSE TECHNICAL, PROFESSIONAL, AND OTHER PERSONS WITH THE
CAPACITY TO MASTER AND EMPLOY SUCH SKILLS WHO ARE, OR ARE TRAINING TO
BE, EMPLOYED BY A GOVERNMENTAL OR PUBLIC BODY WHICH HAS RESPONSIBILITY
FOR COMMUNITY DEVELOPMENT, OR BY A PRIVATE NONPROFIT ORGANIZATION WHICH
IS CONDUCTING OR HAS RESPONSIBILITY FOR HOUSING AND COMMUNITY
DEVELOPMENT PROGRAMS, AND (2) SUPPORT STATE AND LOCAL RESEARCH THAT IS
NEEDED IN CONNECTION WITH HOUSING PROGRAMS AND NEEDS, PUBLIC IMPROVEMENT
PROGRAMING, CODE PROBLEMS, EFFICIENT LAND USE, URBAN TRANSPORTATION, AND
SIMILAR COMMUNITY DEVELOPMENT PROBLEMS."
(B) SECTION 802(A) OF SUCH ACT //20 USC 802.// IS AMENDED TO READ AS
FOLLOWS."
"(A) THE SECRETARY IS AUTHORIZED TO PROVIDE FELLOWSHIPS FOR THE
GRADUATE TRAINING OF PROFESSIONAL CITY PLANNING, MANAGEMENT, AND HOUSING
SPECIALISTS, AND OTHER PERSONS WHO WISH TO DEVELOP A GENERAL CAPACITY IN
URBAN AFFAIRS AND PROBLEMS AS HEREIN PROVIDED. PERSONS SHALL BE
SELECTED FOR SUCH FELLOWSHIPS SOLELY ON THE BASIS OF ABILITY AND UPON
THE RECOMMENDATION OF THE URBAN STUDIES FELLOWSHIP ADVISORY BOARD
ESTABLISHED PURSUANT TO SUBSECTION (B). FELLOWSHIPS SHALL BE SOLELY FOR
TRAINING IN PUBLIC AND PRIVATE NONPROFIT INSTITUTIONS OF HIGHER
EDUCATION HAVING PROGRAMS OF GRADUATE STUDY IN THE FIELD OF CITY
PLANNING OR IN RELATED FIELDS (INCLUDING ARCHITECTURE, CIVIL
ENGINEERING, ECONOMICS, MUNICIPAL FINANCE, PUBLIC ADMINISTRATION, URBAN
AFFAIRS, AND SOCIOLOGY) WHICH PROGRAMS ARE ORIENTED TO TRAINING FOR
CAREERS IN CITY AND REGIONAL PLANNING, HOUSING, URBAN RENEWAL, AND
COMMUNITY DEVELOPMENT."
(C) TITLE VIII OF SUCH ACT //20 USC 801.// IS FURTHER AMENDED (1) BY
REDESIGNATING SECTIONS 804 THROUGH 807 AS SECTIONS 805 THROUGH 808, //20
USC 804.// RESPECTIVELY, AND (2) BY INSERTING AFTER SECTION 803 A NEW
SECTION AS FOLLOWS:
"PROJECT GRANTS AND CONTRACTS //20 USC 803A.//
"SEC. 804. (A) THE SECRETARY IS AUTHORIZED TO MAKE GRANTS TO OR
CONTRACTS WITH INSTITUTIONS OF HIGHER EDUCATION, OR COMBINATIONS OF SUCH
INSTITUTIONS, TO ASSIST THEM IN PLANNING, DEVELOPING, STRENGTHENING,
IMPROVING, OR CARRYING OUT PROGRAMS OR PROJECTS (1) FOR THE PREPARATION
OF GRADUATE OR PROFESSIONAL STUDENTS IN THE FIELDS OF CITY AND REGIONAL
PLANNING AND MANAGEMENT, HOUSING, AND URBAN AFFAIRS, OR (2) FOR RESEARCH
INTO, OR DEVELOPMENT OR DEMONSTRATION OF, IMPROVED METHODS OF EDUCATION
FOR THESE PROFESSIONS. SUCH GRANTS OR CONTRACTS MAY INCLUDE PAYMENT OF
ALL OR PART OF THE COST OF PROGRAMS OR PROJECTS.
"(B)(1) A GRANT OR CONTRACT AUTHORIZED BY THIS SECTION SHALL BE MADE
ONLY UPON APPLICATION TO THE SECRETARY AT SUCH TIME OR TIMES AND
CONTAINING SUCH INFORMATION AS HE MAY PRESCRIBE, EXCEPT THAT NO SUCH
APPLICATION SHALL BE APPROVED UNLESS IT--,
"(A) SETS FORTH PROGRAMS, ACTIVITIES, RESEARCH, OR DEVELOPMENT
FOR WHICH A GRANT IS AUTHORIZED UNDER THIS SECTION;
"(B) PROVIDES FOR SUCH FISCAL CONTROL AND FUND ACCOUNTING
PROCEDURES AS MAY BE NECESSARY TO ASSURE PROPER DISBURSEMENT OF
AND ACCOUNTING FOR FEDERAL FUNDS PAID TO THE APPLICANT UNDER THIS
SUBSECTION; AND
"(C) PROVIDES FOR MAKING SUCH REPORTS, IN SUCH FORM AND
CONTAINING SUCH INFORMATION, AS THE SECRETARY MAY REQUIRE TO CARRY
OUT HIS FUNCTIONS UNDER THIS SUBSECTION, AND FOR KEEPING SUCH
RECORDS AND FOR AFFORDING SUCH ACCESS THERETO AS THE SECRETARY MAY
FIND NECESSARY TO ASSURE THE CORRECTNESS AND VERIFICATION OF SUCH
REPORTS.
"(2) PAYMENTS UNDER THIS SECTION MAY BE USED, IN ACCORDANCE WITH
REGULATIONS OF THE SECRETARY, AND SUBJECT TO THE TERMS AND CONDITIONS
SET FORTH IN AN APPLICATION APPROVED UNDER PARAGRAPH (1), TO PAY PART OF
THE COMPENSATION OF STUDENTS EMPLOYED IN PROFESSIONS REFERRED TO IN
SUBSECTION (A)(1), EXCEPT STUDENTS EMPLOYED IN ANY BRANCH OF THE
GOVERNMENT OF THE UNITED STATES, AS PART OF A PROGRAM FOR WHICH A GRANT
HAS BEEN APPROVED PURSUANT TO THIS SUBSECTION."
(D) SECTION 807 OF SUCH ACT //20 USC 806.// (AS REDESIGNATED BY
SUBSECTION (C) OF THIS SECTION) IS AMENDED BY INSERTING BEFORE THE
PERIOD AT THE END OF THE FIRST SENTENCE A COMMA AND THE FOLLOWING:
"WHICH AMOUNT SHALL BE INCREASED BY $3,500,000 ON JULY 1, 1974, AND BY
$3,500,000 ON JULY 1, 1975".
SEC. 501. SECTION 501(A)(1) OF THE HOUSING ACT OF 1949 //42 USC
1471.// IS AMENDED BY STRIKING OUT "PUERTO RICO AND THE VIRGIN ISLANDS"
AND INSERTING IN LIEU THEREOF THE FOLLOWING: "THE COMMONWEALTH OF
PUERTO RICO, THE VIRGIN ISLANDS, THE TERRITORIES AND POSSESSIONS OF THE
UNITED STATES, AND THE TRUST TERRITORY OF THE PACIFIC ISLANDS".
SEC. 502. SECTION 501(A)(4) OF THE HOUSING ACT 1949 //42 USC 1471.//
IS AMENDED--,
(1) BY ADDING AFTER THE COMMA AT THE END OF CLAUSE (B) THE
FOLLOWING: "OR, IF COMBINED WITH A LOAN FOR IMPROVEMENT,
REHABILITATION, OR REPAIRS AND NOT REFINANCED, IS LIKELY TO CAUSE
A HARDSHIP FOR THE APPLICANT, AND"; AND
(2) STRIKING OUT CLAUSES (C) AND (D) AND INSERTING IN LIEU
THEREOF THE FOLLOWING:
"(C) WAS INCURRED BY THE APPLICANT AT LEAST FIVE YEARS PRIOR TO
HIS APPLYING FOR ASSISTANCE UNDER THIS TITLE.".
THE PERCENTAGE OF PROPERTY TAX PAID ON THE
"IF HOUSEHOLD GROSS FIRST $400 OF PROPERTY TAX, OR RENT
CONSTITUTING PROPERTY
INCOME IS: TAX, WHICH SHALL CONSTITUTE CREDIT IS:
UNDER $3,000 80 PER CENTUM OF TAX IN EXCESS OF 2 PER
CENTUM OF INCOME.
$3,000 TO $4,999 70 PER CENTUM OF TAX IN EXCESS OF 3 PER
CENTUM OF INCOME.
$5,000 TO $6,999 60 PER CENTUM OF TAX IN EXCESS OF 4 PER
CENTUM OF INCOME.
"YEARS OF SERVICE NONFORFEITABLE PERCENTAGE
5 25
6 30
7 35
8 40
9 45
10 50
11 60
12 70
13 80
14 90
15 100.
"IF YEAR OF AND SUM OF AGE THEN THE
SERVICE EQUAL AND SERVICE EQUALS NONFORFEITABLE
OR EXCEED--, OR EXCEEDS--, PERCENTAGE IS--,
5 45 50
6 47 60
7 49 70
8 51 80
9 53 90
10 55 100.
"AGE WHEN PARTICIPATION BEGAN: APPLICABLE PERCENTAGE
30 6.5
35 5.4
40 4.4
45 3.6
50 3.0
55 2.5
60 OR OVER 2.0
YEARS OF SERVICE: NONFORFEITABLE PERCENTAGE
5----------------------------25
6----------------------------30
7----------------------------35
8----------------------------40
9----------------------------45
10---------------------------50
11---------------------------60
12---------------------------70
13---------------------------80
14---------------------------90
15 OR MORE 100.
IF YEARS OF SERVICE AND SUM OF AGE AND SERVICE THEN THE
EQUAL OR EXCEED--, EQUALS OR EXCEEDS--, PERCENTAGE IS--,
5 45 50
6 47 60
7 49 70
8 51 80
9 53 90
10 55 100.
"FOR COLONELS FOR LIEUTENANT COLONELS
3,395 6,370
3,743 7,552
4,091 8,733
4,440 9,914
4,788 11,095
5,136 12,276
5,484 13,452
5,833 14,638
6,181 15,819
6,528 17,001
6,878 18,162
7,226 19,363
7,573 20,544
7,921 21,726"