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Page:United States Statutes at Large Volume 84 Part 2.djvu/65

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PUBLIC LAW 91-537-DEC. 8, 1970

1395

Public Law 91-537 AN ACT December 8. 1970 To revise certain laws relating to the liability of hotels, motels, and similar estab[H. R. IO336] lishments in the District of Columbia to their guests. ' r^

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Be it enacted by the Senate and House of Representatives of the United States of Arne^^a in Congress assembled, That (a) if a hotel, °-^- *'°**^*' motel, or similar establishment in the District of Columbia which pro- 'Liability uws, vides lodging to transient guests (1) provides a suitable depository '••^i"i°"(other than a checkroom) for the safekeeping of personal property (other than a motor vehicle), and {^) displays conspicuously in the guest and public rooms of that establishment a printed copy of this section (or summary thereof), that establishment shall not be liable for the loss or destruction of, or damage to, any personal property of a guest or patron not deposited for safekeeping, except that this sentence shall not apply with respect to the liability of that establishment for loss or destruction of, or damage to, any personal property retained by a guest in his room if the property is such property as is usual, common, or prudent for a guest to retain in his room. I n the case of any personal property of a guest or patron deposited in such a depository for safekeeping, that establishment shall be liable for the loss or destruction of, or damage to, that property to the extent of the lesser of $1,000 or the fair market value of the property at the time of its loss, destruction, or damage. (b) If a hotel, motel, or similar establishment in the District of Columbia which provides lodging to transient guests maintains a checkroom (conspicuously designated as such) ^'here guests and patrons may deposit personal property, that establishment shall, if it conspicuously posts a printea copy of this section (or summary thereof), be liable for the loss or destruction of, or damage to, that property only to the extent of the lesser of $200 or the fair market value OT the property at the time of its loss, destruction, or damage unless the destruction or damage is caused by its agent or servant. SEC. 2. (a) A hotel, motel, or similar establishment in the District Lien rights. of Columbia which provides lodging to transient guests, has a lien upon, and may retain possession of, any personal property belonging to, or under the control of, a guest or patron of that establishment, for the amount due that establishment from that guest or patron for lodging, food, or other item of value, except that the amount of the lien authorized by this subsection may not exceed $1,000. Retained (b) If, within 30 days after his property has been retained under erty, public prop*. sale subsection (a), a guest or patron fails to pay the establishment retaining that property any amount due that establishment for lodging, food, or other item of value, that establishment may sell that property at a public sale. Prior to that sale, the establishment shall send, by registered or certified mail, to the last known address of that guest or patron a demand for payment of the amount due, and shall publish a notice of sale once a week for three successive weeks in a daily newspaper of general circulation published in the District of Columbia. Notice, That notice shall state— contents. (1) that the purpose of the sale is to satisfy the lien granted by subsection (a); (2) the amount for which that lien is granted, including storage charges; (3) the day, time, and place of sale; and (4) a description of the property including, in the case of the sale of a motor vehicle, the make, type, year, model number, serial number, engine number, and the year and license registration number of that motor vehicle. 47-348 O - 72 - 5 (Pt. 2)

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 1396

Sale p r o c e e d s, disposition.

Unclaimed property, public sale.

Notice.

Motor v e h i c l e.

Sale p r o c e e d s, disposition.

PUBLIC LAW 91.537-DEC. 8, 1970

[84 STAT.

I n the case of the sale of a motor vehicle, a notice shall be given to any person whose security interest, lien, or other claim upon that niotor vehicle is recorded with the motor vehicle registry of the State (including the District of Columbia) of registration of that motor vehicle. That notice shall be given at least 15 days prior to the date of sale. (c) The proceeds of a sale of property made under subsection (b) shall be applied as follows; (1) jfirst, to cover the expenses of the storage and sale of the property, and (2) second, to discharge any security interest, lien, or other claim upon the property m the order of priority provided for by law. Any amount remaining after the application provided for by paragraphs (1) and (2) shall be paid to the party entitled to the remamder if that party is known and can be located. If that party is not known or cannot be located within one year after the date of the sale, the establishment shall p ^, within a reasonable time, the remainder to the government of the District of Columbia. SEC. 3. (a) A hotel, motel, or similar establishment in the District of Columbia which provides lodging to transient guests may sell at public auction any personal property that has been deposited for safekeeping, checked, or left unclaimed at that establishment for more than 90 days. If the owner of that property is known, the establishment shall, at least 15 days before that sale is held, send, by registered or certified mail, a notice to the owner at his last known address stating— (1) that the purpose of the sale is to dispose of unclaimed property; (2) the amount of storage and other charges (including interest on those charges) against that property; (3) the day^ time, and place of sale; and (4) a description of the property including, in the case of the sale of a motor vehicle, the make, type, year, model number, serial number, engine number, and the year and license registration number of that motor vehicle. I n the case of the sale of a motor vehicle, a notice shall be given to any person whose security interest, lien, or other claim upon that motor vehicle is recorded with the motor vehicle registry of the State (including the District of Columbia) of registration of that motor vehicle. That notice shall be given at least 15 days prior to the date of sale. (b) The proceeds of a sale of property made under subsection (a) shall be applied as follows: (1) first, to cover the expenses of the storage and sale of the property (including interest on those charges), and (2) second, to discharge any security interest, lien, or other claim upon the property in the order of priority provided for by law. Any amount remaining after the application provided for by paragraphs (1) and (2) shall be paid to the party entitled to the remainder if that party is known and can be located. If that party is not known or cannot be located within one year after the date of the sale, the establishment shall pay, within a reasonable time, the remainder to the government of the District of Columbia.

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Page:United States Statutes at Large Volume 84 Part 2.djvu/67

 84 STAT. ]

PUBLIC LAW 91-538-DEC. 9, 1970

SEC. 4. (a) The Act entitled "An Act to establish a code of law for the District of Columbia", approved March 3, 1901 (31 Stat. 1189), is amended— (1) by striking out section 1261 (D.C. Code, sec. 34-103) and by redesignating sections 1263 and 1264 as 1261 and 1262, respectively; and (2) ] ^ striking out in the section redesignated as section 1261 (D.C. Code, sec. 34-104) "by any of the last three sections" and inserting in lieu thereof "by section 1260". (b) The Act entitled "An Act establishing the liability of hotel proprietors and innkeepers in the District of Columbia", approved December 21, 1920 (D.C. Code, secs. 34-101 and 34-102), is repealed, Approved December 8, 1970.

1397

Repeal. ^i Stat. losi.

Public Law 91-538 AN rt.i>

ACT rt.«^j.

To enact the Interstate Agreement on Detainers into law.

December 9, 1970

[H. R. 6951]

Be it enacted by the Seriate and House of Representatives of the United States of America in Congress assembled, That this Act may interstate be cited as the "Interstate Agreement on Detainers Act". Detai^^rs A^t. SEC. 2. The Interstate Agreement on Detainers is hereby enacted into law and entered into by the United States on its own behalf and on behalf of the District of Columbia with all jurisdictions legally joining in substantially the following form: "The contracting States solemnly agree that: "ARTICLE I

"The party States find that charges outstanding against a prisoner, detainers based on untried indictments, informations, or complaints and difficulties in securing speedy trial of persons already incarcerated in other jurisdictions, produce uncertainties which obstruct programs of prisoner treatment and rehabilitation. Accordingly, it is the policy of the party States and the purpose of this agreement to encourage the expeditious and orderly disposition of such charges and determination of the proper status of any and all detainers based on untried indictments, informations, or complaints. The party States also find that proceedings with reference to such charges and detainers, when emanating from another jurisdiction, cannot properly be had in the absence of cooperative procedures. I t is the further purpose of this agreement to provide such cooperative procedures.

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PUBLIC LAW 91-538-DEC. 9, 1970

[84 STAT.

''As usid in this agrtement: "(a) 'State' shall mean a State of tine United States; the United States of America I a territory or possession of the United States; the District of Columbia; the Commonwealth of Puerto Rico. "(b) 'Sending State' shall mean a State in which a prisoner is incarcerated at the time that he initiates a request for final disposition pursuant to article III hereof or at the time that a request for custody or availability is initiated pursuant to article IV hereof. "(cj 'Receiving State' shall mean the State in which trial is to be had on an indictment, information, or complaint pursuant to article III or article IV hereof. "ARTIOLB III

"(a) Whenever a person has entered upon a term of imprisonment in a penal or correctional institution of a party State, and whenever during the continuance of the term of imprisonment there is pending in any other party State any untried indictment, information, or complaint on the basis of which a detainer has been lodged against the prisoner, he shall be brought to trial within one hundred and eighty days after he shall have caused to be delivered to the prosecuting omcer and the appropriate court of the prosecuting officer's jurisdiction written notice^ of the place of his imprisonment and his request for a final disposition to be made of the indictment, information, or complaint: Provided, That, for good cause shown in open court, the prisoner or his counsel being present, the court having jurisdiction of the matter may grant any necessary or reasonable continuance. The request of the prisoner shall be accompanied by a certificate of the appropriate official having custody of the prisoner, stating the term of commitment under which the prisoner is being held, the time already served, the time remaining to be served on the^ sentence, the amount of good time earned, the time of parole eligibility or the prisoner, and any decision of the State parole agency relating to the prisoner. ''(b) The written notice and request for final disposition referred to in paragraph (a] hereof shall be given or sent by the prisoner to the warden, commissioner of corrections, or other official having custody of nim, who shall promptly forward it together with the certificate to the appropriate prosecuting official and court by registered or certified mail, return receipt requested. "(c) The warden, commissioner of corrections, or other official having custody of the prisoner shall promptly inform him of the

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PUBLIC LAW 91-538-DEC. 9, 1970

source and contents of any detainer lodged against him and shall also inform him of his right to make a rec[uest for final disposition of the indictment, information, or complaint on which the detainer is based. " (d) Any request for final disposition made by a prisoner pursuant to paragraph (a) hereof shall operate as a request for final disposition of all untried indictments, informations, or complaints on the basis of which detainers have been lodged against the prisoner from the State to whose prosecuting official the request for final disposition is specifically directed. The warden, commissioner of corrections, or other official having custody of the prisoner shall forthwith notify all appropriate prosecuting officers and courts in the several jurisdictions within the State to which the prisoners request for final disposition is being sent of the prooeeding being initiated by the prisoner. Any notification sent pursuant to this paragraph shall be accompanied by copies of the prisoner's written notice, request, and the certificate. If trial is not had on any indictment, information, or complaint contemplated hereby prior to the return of the prisoner to the original place of imprisonment, such indictment, information, or complaint shall not be of any further force or effect, and the court shall enter an order dismissing the same with prejudice. "(e) Any request for final disposition made by a prisoner pursuant to paragraph (a) hereof shall also be deemed to be a waiver of extradition wnth respect to any charge or proceeding contemplated thereby or included therein by reason of paragraph (d) hereof, and a waiver of extradition to the receiving State to serve any sentence there imposed upon him, after completion of his term of imprisonment in the sending State. The request for final disposition shall also constitute a consent by the prisoner to the production of his body in any court where his presence may be required in order to effectuate the purposes of this agreement and a further consent voluntarily to be returned to the original place of imprisonment in accordance with the provisions of this agreement. Nothing in this paragraph shall prevent the imposition of a concurrent sentence if otherwise permitted by law. "(f) Escape from custody by the prisoner subsequent to his execution of the request for final disposition referred to in paragraph (a) hereof shall void the request. "ARTICLE

IV

" (a) The appropriate officer of the jurisdiction in which an untried indictment, information, or complaint is pending shall be entitled to have a prisoner against whom he has lodged a detainer and who is

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PUBLIC LAW 91-538-DEC. 9, 1970

[84 STAT.

serving a term of imprisonment in any party State made available in accordance with article V (a) hereof upon presentation of a written request for temporary custody or availability to the appropriate authorities of the State in which the prisoner is incarcerated: Provided, That the court having jurisdiction of such indictment, information, or complaint shall have duly approved, recorded, and transmitted the request: ATUI provided further, That there shall be a period of thirty days after receipt by the appropriate authorities before the request be honored, within which period the Governor of the sending State may disapprove the request for temporary custody or availability, either upon his own motion or upon motion of the prisoner. "(b) Upon request of the officer's written request as provided in paragraph (a) hereof, the appropriate authorities having the prisoner m custody shall furnish the officer with a certificate stating the term of commitment under which the prisoner is being held, the time already served, the time remaining to be served on the sentence, the amount of good time earned, the time of parole eligibility of the prisoner, and any decisions of the State parole agency relating to the prisoner. Said authorities simultaneously shall furnish all other officers and appropriate courts in the receiving State who has lodgfed detainers against the prisoner with similar certificates and with notices informing them of the request for custody or availability and of the reasons therefor. "(c) In respect of any proceeding made possible by this article, trial shall be commenced within one hundred and twenty days of the arrival of the prisoner in the receiving State, but for good cause shown in open court, the prisoner or his counsel being present, the court having jurisdiction of the matter may grant any necessary or reasonable continuance. " (d) Nothing contained in this article shall be construed to deprive any prisoner of any right which he may have to contest the legality of his delivery as provided in paragraph (a) hereof, but such delivery may not be opposed or denied on the ground that the executive authority of the sending State has not affirmatively consented to or ordered such delivery. "(e) If trial is not had on any indictment, information, or complaint contemplated hereby prior to the prisoner's being returned to the original place of imprisonment pursuant to article V(e) hereof, such indictment, information, or complaint shall not be of any further force or effect, and the court shall enter an order dismissing the same with prejudice. "ARTICLE

V

" (a) In response to a request made under article III or article IV hereof, the appropriate authority in a sending State shall offer to deliver temporary custody of such prisoner to the appropriate authority in the State where such indictment, information, or complaint is pending against such person in order that speedy and efficient prosecution may be had. If the request for final disposition is made by the prisoner, the offer of temporary custody shall accompany the written notice provided for in article III of this agreement. In the case of a Federal prisoner, the appropriate authority m the receiving State shall be entitled to temporary custody as provided by this agreement or to the prisoner's presence in Federal custody at the place of trial, whichever custodial arrangement may be approved by the custodian.

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PUBLIC LAW 91-538-DEC. 9, 1970

"(b) The officer or other representative of a State accepting an offer of temporary custody shall present the following upon demand: "(1) Proper identification and evidence of his authority to act for the State into whose temporary custody this prisoner is to be given. "(2) A duly certified copy of the indictment, information, or complaint on the basis of which the detainer has been lodged and on the basis of which the request for temporary custody of the prisoner has been made. "(c) If the appropriate authority shall refuse or fail to accept temporary custody of said person, or in the event that an action on the mdictment, information, or complaint on the basis of which the detainer has been lodged is not brought to trial within the period provided in article III or article IV hereof, the appropriate court of the jurisdiction where the indictment, information, or complaint has been pending shall enter an order dismissing the same with prejudice, and any detainer bailed thereon shall cease to be of any force or effect. " (d) The temporary custody referred to in this agreement shall be only for the purpose of permitting prosecution on the charge or charges contained in one or more untried indictments, informations, or complaints which form the basis of the detainer or detainers or for prosecution on any other charge or charges arising out of the same transaction. Except for his attendance at court and while being transported to or from any place at which his presence may be required, the prisoner shall be held in a suitable jail or other facility regularly used for persons awaiting prosecution. "(e) At the earliest practicable time consonant with the purposes of this agreement, the prisoner shall be returned to the sending State. "(f) During the continuance of temporary custody or while the prisoner is otherwise being made available for trial as required by this agreement, time being served on the sentence shall continue to run but good time shall be earned by the prisoner only if, and to the extent that, the law and practice of the jurisdiction which imposed the sentence may allow. " (g) For all purposes other than that for which temporary custody as provided in this agreement is exercised, the prisoner shall be deemed to remain in the custody of and subject to the jurisdiction of the sending State and any escape from temporary custody may be dealt with in the same manner as an escape from the original place of imprisonment or in any other manner permitted by law. " (h) From the time that a party State receives custody of a prisoner pursuant to this agreement until such prisoner is returned to the territory and custody of the sending State, the State in which the one or more untried indictments, informations, or complaints are pending or in which trial is being had shall be responsible for the prisoner and shall also pay all costs of transportingj caring for, keeping, and returning the prisoner. The provisions of this paragraph shall govern unless the States concerned shall have entered into a supplementary agreement providing for a different allocation of costs and responsibilities as between or among themselves. Nothing herein contained shall be construed to alter or affect any internal relationship among the departments, agencies, and officers of and in the government of a party State, or between a party State and its subdivisions, as to the payment of costs, or responsibilities therefor.

1401

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PUBLIC LAW 91-538-DEC. 9, 1970

[84 STAT.

"ARTICUI VI

"(a) In determining the duration and expiration dates of the time periods provided in articles III and IV of this agreement, the running of said time periods shall be tolled whenever and for as long as the prisoner is unable to stand trial, as determined by the court having jurisdiction of the matter. " (b) No provision of this agreement, and no remedy made available by this agreement shall apply to any person who is adjudged to be mentally ill. "ARTICLE

VII

"Each State party to this agreement shall designate an officer who, acting jointly with like officers of other party States, shall promulgate rules and regulations to carry out more effectively the terms and provisions of this agreement, and who shall provide, within and without the State, information necessary to the effective operation of this agreement. "ARTICLE VIII "This agreement shall enter into full force and effect as to a party State when such State has enacted the same into law. A State party to this agreement may withdraw herefrom by enacting a statute repealing t l ^ same. However, the withdrawal of any State shall not affect the status of any proceedings already initiated by inmates or by State officers at the time such withdrawal takes effect, nor shall it affect their rights in respect thereof. "ARTICLE

"Governor."

coufu""'""^^*

IX

"This agreement shall be liberally construed so as to effectuate its purposes. The provisions of this agreement shall be severable and if any phrase, clause, sentence, or provision of this agreement is declared to be contrary to the constitution of any party State or of the United States or the applicability thereof to any ^vernment, agency, person, or circumstance is held invalid, the validity of the remainder of this agreement and the applicability thereof to any government, agency, person, or circumstance shall not be affected thereby. If this agreement shall be held contrary to the constitution of any State party hereto, the agreement shall remain in full force and effect as to the remaining States and in full force and effect as to the State affected as to all severable matters." g^^^,^ 3^ rpj^g ^j,^ "Governor" as used in the agreement on detainers shall mean with respect to the United States, the Attorney General, and with respect to the District of Columbia, the Commissioner of the District of Columbia, SEC. 4. The term "appropriate court" as used in the agreement on detainers shall mean with respect to the United States, the courts of the United States, and with respect to the District of Columbia, the courts of the District of Columbia, in which indictments, informations, or complaints, for which disposition is sought, are pending. SEC. 5. All courts, departments, agencies, officers, and employees of the United States and of the District of Columbia are hereby directed to enforce the agreement on detainers and to cooperate "with one

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PUBLIC LAW 91-539-DEC. 9, 1970

another and with all party States in enforcing the agreement and effectuating its purpose. SEC. 6. For the United States, the Attorney General, and for the District of Columbia, the Commissioner of the District of Columbia, shall establish such regulations, prescribe such forms, issue such instructions, and perform such other acts as he deems necessary for carrying out the provisions of this Act. SEC. 7. The right to alter, amend, or repeal this Act is expressly reserved. SEC. 8. This Act shall take effect on the ninetieth day after the date of its enactment. Approved December 9, 1970.

1403

Regulations.

Effective date.

Public Law 91-539 AN ACT To authorize the Secretary of Defense to lend certain Army, Navy, and Air Force equipment and to provide transportation and other services to the Boy Scouts of America in connection with the World Jamboree of Boy Scouts to be held in Japan in 1971, and for other purposes.

December 9, 1970 [H. R. 1 5 2 1 6 ]

Be it enacted by the Senate and House of Representatives of the Boy United States of America in Congress assembled, That (a) the Secre- WorldScouts. tary of Defense is hereby authorized, under such regulations as he may military Jamboree, support. prescribe, to lend to the JBoy Scouts of America, for the use and accommodation of the approximately four thousand Scouts, Scouters, and officials who are to attend the World Jamboree, Boy Scouts, to be held in Japan in July and August 1971, such tents, cots, blankets, commissary equipment, flags, refrigerators, and other equipment and without reimbursement, furnish services and expendable medical supplies, as may be necessary or useful to the extent that items are in stock and items or services are available. (b) Such equipment is authorized to be delivered at such time prior Equipment. to the holding of such jamboree, and to be returned at such time after the close of such jamboree, as may be agreed upon by the Secretary of Defense and the Boy Scouts of America. No expense shall be incurred by the United States Government for the delivery, return, rehabilitation, or replacement of such equipment. (c) The Secretary of Defense, before delivering such property, shall Bond. take from the Boy Scouts of America, good and sufficient bond for the safe return of such property in good order and condition, and the whole without expense to the United States. SEC. 2. (a) The Secretary of Defense is hereby authorized under s eTransportation rvices. such regulations as he may prescribe, to provide, without expense to the United States Government, transportation from the United States or military commands overseas, and return, on vessels of the Military Sea Transportation Service or aircraft of the Military Air Transportation Service for (1) those Boy Scouts, Scouters, and officials certified by the Boy Scouts of America, as representing the Boy Scouts of America, at the jamboree referred to in the first section of this Act, and (2) the equipment and property of such Boy Scouts, Scouters, and officials and the property loaned to the Boy Scouts of America, by the Secretary of Defense pursuant to this Act to the extent that such transportation will not interfere with the requirements of military operations.

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Reimbursement.

Passport fee.

PUBLIC LAW 91-540-DEC. 9, 1970

[84 STAT.

(b) Before furnishing any transportation under this section, the Secretary of Defense shall take from the Boy Scouts of America, a good and sufficient bond for the reimbursement to the United States by the Boy Scouts of America, of the actual costs of transportation furnished under this section. SEC. 3. Ajnounts paid to the United States to reimburse it for expenses incurred under the first section and for the actual costs of transportation furnished under section 2 shall be credited to the current applicable appropriations or funds to which such expenses and costs were charged and shall be available for the same purposes as such appropriations or funds. SEC. 4. Under regulations prescribed by the Secretary of State, no fee shall be collected for the application for a passport by or the issuance of a passport to, any Boy Scout, Scouter, or official who is certified by the Boy Scouts of America, as representing the Boy Scouts of America, at the jamboree referred to in the first section of this Act. Approved December 9, 1970. Public Law 91-540

December 9, 1970 [S. 2543]

Horse Protection Act of 1970.

AN ACT To prohibit the movement in interstate or foreign commerce of horses which are "sored", and for other purposes.

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 "Horse Protection Act of 1970". SEC. 2. (B.) A horse shall be considered to be sored if, for the purpose of affecting its gait— (1) a blistering agent has been applied after the date of enactment of this Act internally or externally to any of the legs, ankles, feet, or other parts of the horse; (2) burns, cuts, or lacerations have been inflicted after the date of enactment of this Act on the horse; (3) a chemical agentj or tacks or nails have been used after the date of enactment of this Act on the horse; or (4) any other cruel or inhumane method or device has been used after the date of enactment of this Act on the horse, including, but not limited to, chains or boots;

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PUBLIC LAW 91-540-DEC. 9, 1970

which may reasonably be expected (A) to result in physical pain to the horse when walking, trotting, or otherwise moving, (B) to cause extreme physical distress to the horse, or (C) to cause inflammation. (b) As used in this Act, the term "commerce" means commerce between a point in any State or possession of the United States (including the District of Columbia and the Commonwealth of Puerto Rico) and any point outside thereof, or between points within the same State or possession of the United States (including the District of Columbia and the Commonwealth of Puerto Rico) but through any place outside thereof, or within the District of Columbia, or from any foreign country to any point within the United States. SEC. 3. The Congress hereby finds (1) that the practice of soring horses for the purposes of affecting their natural gait is cruel and inhumane treatment of such animals; (2) that the movement of sored horses in commerce adversely affects and burdens such commerce; and (3) that horses which are sored compete unfairly with horses moved in commerce which are not sored. SEC. 4. (a) It shall be unlawful for any person to ship, transport, or otherwise move, or deliver or receive for movement, in commerce, for the purpose of showing or exhibition, any horse which such person has reason to believe is sored. (b) It shall be unlawful for any person to show or exhibit, or enter for the purpose of showing or exhibiting, in any horse show or exhibition, any horse which is sored if that horse or any other horse was moved to such show or exhibition in commerce. (c) It shall be unlawful for any person to conduct any horse show or exhibition in which there is shown or exhibited a horse which is sored, if any horse was moved to such show or exhibition in commerce, unless such person can establish that he has complied with such rules and regulations as the Secretary of Agriculture may prescribe to prevent the showing or exhibition of horses which have been sored. SEC. 5. (a) Any representative of the Secretary of Agriculture is authorized to make such inspections of any horses which are being moved, or have been moved, in commerce and to make such inspections of any horses at any horse show or exhibition within the United States to which any liorse was moved in commerce, as he deems necessary for the effective enforcement of this Act, and the owner or other person having custody of any such horse shall afford such representative access to and opportunity to so inspect such horse.

1405

"Commerce."

Unlawful acts.

Inspection.

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 1406 Horse shows and exhibitions, records.

Penalty. Hearing opportunity.

Penalty.

Department of Agriculture personnel.

Regulations.

Report to Congress.

PUBLIC LAW 91-540-DEC. 9, 1970

[84 STAT.

(b) The person or j^ersons in charge of any horse show or exhibition within the United States, or such other person or persons as the Secretary of Agriculture (hereinafter referred to in this Act as the "Secretary") may by regulation designate, shall keep such records as the Secretary may by regulation prescribe. The person or persons in charge of any horse show or exhibition, or such other person or persons as the Secretary may by regulation designate, shall afford the representatives of the Secretary access to and opportunity to inspect and copy such records at all reasonable times. SEC. 6. (a) Any person who violates any provision of this Act or any regulation issued thereunder, other than a violation the penalty for which is prescribed by subsection (b) of this section, snail be assessed a civil penalty by the Secretary of not more than ^1,000 for each such violation. Xo penalty shall be assessed unless such person is given notice and opportunity for a hearing with respect to such violation. Each violation shall be a separate of^nse. Any such civil penalty may be compromised by the Secretary. Upon any failure to pay the penalty assessed under this subsection, the Secretary shall request the Attornev General to institute a civil action in a district court of the United States for any district in which such person is found or resides or transacts business to collect the penalty and such court shall have jurisdiction to hear and decide any such action. (b) Any person who willfully violates any provision of this Act or any regulation issued thereunder shall be fined not more than $2,000 or imprisoned not more than six months, or both. SEC. 7. Whenever the Secretary believes that a willful violation of this Act has occurred and that prosecution is needed to obtain compliance with the Act, he shall inform the Attorney General and the Attorney General shall take such action with respect to such matter as he deems appropriate. SEC. 8. The Secretary, in carrying out the provisions of this Act, shall utilize, to the maximum extent practicable, the existing personnel and facilities of the Department of Agriculture. The Secretary is further authorized to utilize the officers and employees of any State, with its consent, and with or without reimbursement, to assist him in carrying out the provisions of this Act. SEC. 9. The Secretary is authorized to issue such rules and regulations as he deems necessary to carry out the provisions of this Act. SEC. 10. No provision of this Act shall be construed as indicating an intent on the part of the Congress to occupy the field in which such provision operates to the exclusion of the law of any State on the same subject matter, unless there is a direct and positive conflict between such provision and the law of the State so that the two cannot be reconciled or consistently stand together. Nor shall any provision of this Act be construed to exclude the Federal Government from enforcing the provision of this Act within any State, whether or not such State has enacted legislation on the same subject, it being the intent of the Congress to establish concurrent jurisdiction with the States over such subject matter. I n no case shall any such State take any action pursuant to this section involving a violation of any such law of that State which would preclude the United States from enforcing the provisions of this Act against any person. SEC. 11. On or before the expiration of thirty calendar months following the date of enactment of this Act, and every twenty-fourcalendar-month period thereafter, the Secretary shall submit to the Congress a report upon the matters covered by this Act, including enforcement and other actions taken thereunder, together with such recommendations for legislative and other action as he deems appropriate.

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PUBLIC LAW 91-541-DEC. 10, 1970

1407

SEC. 12. There are hereby authorized to be appropriated such sums Appropriation. not to exceed $100,000 annually, as may be necessary to carry out the provisions of this Act. Approved December 9, 1970.

Public Law 91-541 JOINT RESOLUTION

_

^

,„,„,„

December 10, 1970

To provide for a temporary prohibition of strikes or lockouts with respect to [H. J. Res. I413] the current railway labor-management dispute.

Whereas the labor dispute between the carriers represented by the National Railway Labor Conference and the Eastern, Western, and Southeastern Carriers Conference Committees and certain of their employees represented by the United Transportation Union, the Brotherhood of Railway Airline and Steamship Clerks, Freight Handlers, Express and Station Employees ( B R A C), the Brotherhood of Maintenance of Way Employees, Hotel and Restaurant Employees and Bartenders International Union threatens essential transportation services of the Nation j and Whereas it is essential to the national interest, including the national health and defense, that essential transportation services be maintained; and Whereas all the procedures for resolving such dispute provided for in the Railway Labor Act have been exhausted and have not 48'*stat"\*iy5^' resulted in settlement of the dispute; and 45 USC isi*. Whereas the Congress finds that emergency measures are essential to security and continuity of transportation services by such carriers; and Whereas it is desirable to achieve the objectives in a manner which preserves and prefers solutions reached through collective baraining; and ereas the recommendations of Presidential Emergency Board Numbered 178 for settlement of this dispute did not result in a settlement: Now, therefore, in order to encourage these parties to reach their own agreement, be it Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That the provisions of the o^loc^iTou^sV'^^" final paragraph of section 10 of the Railway Labor Act (45 U.S.C. prohibition. 160) shall apply and be extended for an additional period with respect 44 Stat. sse. to the above dispute, so that no change, except by agreement, shall be made by the carriers represented by the National Railway Labor Conference and the Eastern, Western, and Southeastern Carriers Conference Committees or by their employees, in the conditions out of which such dispute arose prior to 12:01 antemeridian of March 1, 1971. SEC. 2. Not later than fifteen days prior to the expiration date speci- ^f^l°J^^\° fied in the first section of this joint resolution the President shall submit to the Congress a full and comprehensive report containing— (1) the progress, if any, of negotiations between the National Railway Labor Conference and the Eastern. Western, and Southeastern Carriers Conference Committees and their employees; and (2) any such recommendations for a proposed solution of the dispute described in this joint resolution as he deems appropriate.

f

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Page:United States Statutes at Large Volume 84 Part 2.djvu/78

 1408 Pay i n c r e a s e, effective date.

PUBLIC LAW 91-542-DEC. 11, 1970

[84 STAT.

SEC. 3. Notwithstanding the first section of this joint resolution, the rates of pay of all employees who are subject to the first section of this resolution shall be increased by 5 percent effective as of January 1, 1970, and by 32 cents per hour effective as of November 1, 1970. Nothing in this section shall prevent any change made by agreement in the increases in rates of pay provided pursuant to this section. Approved December 10, 1970.

Public Law 91-542 December 11, 1970

[H. R. 19000]

Indians. Nez Perce Tribe, judgment funds.

AN

ACT

To amend the Act of April 24, 1961, authorizing the use of judgment funds of the Nez Perce Tribe.

Be it enacted by the Seriate and House of Representatives of the United States of America in Congress assembled, That the first sentence of section 1 of the Act entitled "An Act to authorize the use of funds arising from a judgment in favor of the Nez Perce Tribe of Indians, and for other purposes," approved April 24, 1961 (75 Stat. 45), is amended by inserting after "180-A," the following: "and the funds deposited in the Treasury of the United States to pay the final judgment entered by the Indian Claims Commission on April 29, 1970 in docket 179,". SEC. 2. The last sentence of section 2 of the aforesaid Act is amended by inserting after "175" a comma and "179". Approved December 11, 1970.

Public Law 91-543 December 11, 1970 [H. R. 9677]

Federal jurors. Duty, service of summons. 82 Stat. 58.

AN ACT To amend section 1866 of title 28, United States Code, prescribing the manner in which summonses for jury duty may be served. Be it enacted by the Senate and House of Representatives of the United States of Anienca in Congress assembled, That section 1866(b) of title 28, United States Code, is amended to read as follows: "When the court orders a grand or petit jury to be drawn, the clerk or jury commission or their duly designated deputies shall issue summonses for the required number of jurors. "Each person drawn for jury service may be served personally, or by registered or certified mail addressed to such person at his usual residence or business address. "If such service is made personally, the summons shall be delivered by the clerk or the jury commission or their duly designated deputies to the marshal who shall make such service. "If such service ds made by registered or certified mail, the summons may be served by the clerk or jury commission or their duly designated deputies who shall make affidavit of service and shall file with such affidavit the addressee's receipt for the registered or certified summons. If such service is made by the marshal, he shall attach to his return the addressee's receipt for the registered or certified mail." Approved December 11, 1970.

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Page:United States Statutes at Large Volume 84 Part 2.djvu/79

 84 STAT. ]

PUBLIC LAW 91-544-DEC. 11, 1970

1409

Public Law 91-544 AN ACT

December 11, 1970

Making appropriations for military construction for the Department of Defense for the fiscal year ending June 30, 1971, and for other purposes.

[H. R. 17970]

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the following stmcJlonApp^osums are appropriated, out of any money in the Treasury not other- priations Act, wise appropriated, for the fiscal year ending June 30, 1971, for military ^^'^^• construction functions administered by the Department of Defense, and for other purposes, namely: MiLiTAR'r CONSTRUCTION,

ARMY

For acquisition, construction, installation, and equipment of temporary or permanent public works, military installations, and facilities for the Army as currently authorized in military public works or military construction Acts, and in sections 2673 and 2675 of title 10, United States Code, $646,958,000, to remain available until expended. MILITARY CONSTRUCTION, NAVY

For acquisition, construction, installation, and equipment of temporary or permanent public works, naval installations, and facilities for the Navy as currently authorized in military public works or military construction Acts, and in sections 2673 and 2675 of title 10, United States Code, including personnel in the Naval Facilities Engineering Command and other personal services necessary for the purposes of this appropriation, $302,483,000, to remain available until expended. MILITARY CONSTRUCTION, A I R FORCE

For acquisition, construction, installation, and equipment of temporary or permanent public works, military installations, and facilities for the Air Force as currently authorized in military public works or military construction Acts, and in sections 2673 and 2675 of title 10, United States Code, $284,147,000, to remain available until expended. MILITARY CONSTRUCTION, DEFENSE AGENCIES

For acquisition, construction, installation, and ex|uipment of temporary or permanent public works, installations, and facilities for activities and agencies of the Department of Defense (otltcr than the military departments and the Office of Civil Defense;, as ^iurrently authorized m military public works or military constraction Acts, and in sections 2673 and 2675 of title 10, United States Code,, $46,300,000, to remain available until expended; and, in addition, not to exceed $20,000,000 to be derived by transfer from the appropriation "Research, development, test, and evaluation. Defense Agencies" as determined by the Secretary of Defense: Provided, That such amounts of this appropriation as may be determined by the Secretary of Defense may be transferred to such appropriations of the Department of Defense available for military construction as ho may designate. MILITARY CONSTRUCTION, A R M Y NATIONAL Gi^^viiD

For construction, acquisition, expansion, rehabilication, and conversion of facilities for the training and administration of the Army National Guard as authorized by chapter 133 of title 10, L1"nited States

AJeTiWiT.'

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Page:United States Statutes at Large Volume 84 Part 2.djvu/80

 1410 iruic *223f'

PUBLIC LAW 91-544-DEC. 11, 1970

[84 STAT.

^^^®' ^^ amended, and the Keserve Forces Facilities Acts, $15,000,000, to remain available until expended. MILITARY CONSTRUCTIGX, AIR NATIONAL GUARD

For construction, acquisition, expansion, rehabilitation, and conversion of facilities for the training and administration of the Air National Guard, and contributions therefor, as authorized by chapter 133 of title 10, United States Code, as amended, and the Eeserve Forces Facilities Acts, $8,000,000, to remain available until expended. MILITARY CONSTRUCTIOX, ARMY RESERVE

For construction, acquisition, expansion, rehabilitation, and conversion of facilities for the training and administration of the Army Reserve as authorized by chapter 133 of title 10, United States Code, as amended, and the Reserve Forces Facilities Acts, $10,000,000, to remain available until expended. MILITARY

CoNSTiiucriox, XAVAL RESERVE

For construction, acquisition, expansion, rehabilitation, and conversion of facilities for the training and administration of the reserve components of the Navy and Marine Corps as authorized by chapter 133 of title 10, United States Code, as amended, and the Reserve Forces Facilities Acts, $5,000,000, to remain available until expended. MILITARY CONSTRUCTIOX, AIR FORCE RESERVE

For construction, acquisition, expansion, rehabilitation, and conversion of facilities for the training and administration of the Air Force Reserve as authorized by chapter 133 of title 10, United States Code, as amended, and the Reserve Forces Facilities Acts, $4,000,000, to remain available until expended. FAMILY HOUSING, DEFENSE

For expenses of family housing for the Army, Navy, Marine Corps, Air Force, and Defense agencies, for construction, including acquisition, replacement, addition, expansion, extension and alteration and for operation, maintenance, and debt payment, including leasing, minor construction, principal and interest charges, and insurance premiums, as authorized by law, $806,464,000, to be obligated and expended in the Family Housing Management Account established pursuant to \\ vsc^igAa-i. section 501(a) of Public Law 87-554, in not to exceed the following amounts: For the Army: Construction, $46,402,000; Operation, maintenance, $152,500,000; For the Navy and Marine Corps: Construction, $95,174,000; Operation, maintenance, $101,661,000; For the Air Force: Construction, $75,926,000: Operation, maintenance, $165,075,000; For defense agencies: Construction, $326,000; Operation, maintenance, $5,134,000; For Department of Defense: Debt payment, $164,266,000.

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Page:United States Statutes at Large Volume 84 Part 2.djvu/81

 84 STAT.]

PUBLIC LAW 91-544-DEC. 11, 1970

1411

Provided, That the amounts provided under this head for construction and for debt payment shall remain available until expended. GENERAL PROVISIONS Prior SEC. 101. Funds appropriated to the Department of Defense for ations. approprl* construction in prior years are hereby made available for construction authorized for each such department by the authorizations enacted into law during the second session of the Ninety-first Congress. SEC. 102. None of the funds appropriated in this Act shall be Contracts. expended for payments under a cost-plus-a-fixed-fee contract for work, where cost estimates exceed $25,000, to be performed within the United States, except Alaska, without the specific approval in writing of the Secretary of Defense setting forth the reasons therefor. SEC. 103. None of the funds appropriated in this Act shall be c oConstruction s t s, limitaexpended for additional costs involved in expediting construction tion. unless the Secretary of Defense certifies such costs to be necessary to protect the national interest and establishes a reasonable completion date for each project, taking into consideration the urgency of the requirement, the type and location of the project, the climatic and seasonal conditions affecting the construction, and the application of economical construction practices. Bakery SEC. 104. None of the funds appropriated in this Act shall be used t i e s, e t c. facilifor the construction, replacement, or reactivation of any bakery, laundry, or drycleaning facility in the United States, its territories, or possessions, as to which the Secretary of Defense does not certify, in writing, giving his reasons therefor, that the services to be furnished by such facilities are not obtainable from commercial sources at reasonable rates. Motor SEC. 105. Funds appropriated to the Department of Defense for con- hire. v e h i c l e s, struction are hereby made available for hire of passenger motor vehicles. SEC. 106. Funds appropriated to the Department of Defense for A c c e s s roads, construction may be used tor advances to the Bureau of Public Roads, construction. Department of Transportation, for the construction of access roads as authorized by section 210 of title 23, United States Code, when 72 Stat. 908. projects authorized therein are certified as important to the national defense by the Secretary of Defense. SEC. 107. None of the funds appropriated in this Act may be used to New b a s e s. begin construction of new bases inside the continental United States for which specific appropriations have not been made. purchases SEC. 108, No part of the funds provided in this Act shall be used for or Lande m e n t s. eas purchase of land or land easements in excess of 100 per centum of the value as determined by the Corps of Engineers or the Naval Facilities Engineering Command, except: (a) where there is a determination of value by a Federal court, (b) purchases negotiated by the Attorney General or his designee, and (c) where the estimated value is less than $25,000. SEC. 109. None of the funds appropriated in this Act may be used e cForeign projts. to make payments under contracts for any project in a foreign country unless the Secretary of Defense or his designee, after consultation with the Secretary of the Treasury or his designee, certifies to the Congress that the use, by purchase from the Treasury, of currencies of such country acquired pursuant to law is not feasible for the purpose, stating the reason therefor.

47-348 O - 72 - 6 (Pt. 2)

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Page:United States Statutes at Large Volume 84 Part 2.djvu/82

 1412 Family housing, limitations.

Short title.

PUBLIC LAW 91-545-DEC. 11, 1970

[84 STAT.

SEC. 110. None of the funds appropriated in this Act shall be used to (1) acquire land, (2) provide for site preparation, or (3) install utilities for an;^ family housing, except housing for which funds have been made available in annual military construction appropriations Acts. This Act may be cited as the "Military Construction Appropriations Act, 1971". Approved December 11, 1970.

Public Law 91-545 December 11, 1970 [H. R. 4 3 0 2 ]

U.S. district courts. Transcript f e e s. 79 Stat. 647.

Ante, p. 916.

AN ACT To amend title 28 of the United States Code, section 753, to authorize payment by the United States of fees charged by court reporters for furnishing certain transcripts in proceedings under the Criminal Justice Act.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That paragraph (f) of section 753 of title 28 of the United States Code is amended by striking all of the third sentence of that paragraph and substituting therefor the following: "Fees for transcripts furnished in criminal proceedings to persons proceeding under the Criminal Justice Act (18 U.S.C. 3006A), or in habeas corpus proceedings to persons allowed to sue, defend, or appeal in forma pauperis, shall be paid by the United States out of moneys appropriated for those purposes." Approved December 11, 1970.

Public Law 91-546 December 14, 1970 [H. R. 18126]

U.S. district courts. 81 Stat. 662. New York,

62 Stat. 883. Mississippi.

Maryland.

AN ACT To amend title 28 of the United States Code to provide for holding district court for the Eastern District of New York at Westbury, New York.

Be it enacted by the Senate and House of Re^rresentatives of the United States of America in Congress assembled, That the second paragraph of section 112(c) of title 28 of the United States Code is amended to read as follows: "Court for the Eastern District shall be held at Brooklyn, Mineola, and Westbury." SEC. 2. That the last sentence of section 104(b)(4) of title 28 of the United States Code is amended to read as follows: "Court for the southern division shall be held at Biloxi and Gulfport." SEC. 3. That the last sentence of section 104(b)(3) of title 28, United States Code, is amended to read as follows: "Court for the western division shall be held«at Natchez and Vicksburg: Provided, That court shall be held at Natchez if suitable quarters and accommodations are furnished at no cost to the United States." SEC. 4. That section 100 of title 28, United States Code, is amended to read as follows: "§ 100. Maryland. "Maryland constitutes one judicial district. "Court shall be held at Baltimore, Cumberland, Denton, and at a suitable site in Prince Georges County not more than five miles from the boundary of Montgomery and Prince Georges Counties." Approved December 14, 1970.

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Page:United States Statutes at Large Volume 84 Part 2.djvu/83

 84 STAT.]

1413

PUBLIC LAW 91-547-DEC. 14, 1970

Public Law 91-547 AN ACT To amend the Investment Company Act of 1940 and the Investment Advisers Act of 1940 to define the equitable standards governing relationships between investment companies and their investment advisers and principal underwriters, and for other purposes.

Be it enacted by the Senate and House of RepresentatlceH of the United States of America in Congress assembled, That this Act may be cited as the "Investment Company Amendments Act of 1970". SEC. 2. (a) Section 2(a) of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)) is amended as follows: (1) Paragraph (5) is amended by striking out "under section 11(k) of the Federal Reserve Act, as amended" and inserting in lien thereof "under the authority of the Comptroller of the Currency". (2) Paragraphs (19) through (.35) are redesignated as paragraphs (20) through (36), respectively, and paragraphs (36) through (42) are redesignated as paragraphs (38) through (44), respectively. (3) A new paragraph is inserted immediately after paragraph (18) to read as follows: " (19) 'Interested person" of another person means— " (A) when used with respect to an investment company— " (i) any affiliated person of such company, "(ii) any member of the immediate family of any natural person who is an affiliated person of such company, "(iii) any interested person of any investment adviser of or principal underwriter for such company, "(iv) any person or partner or employee of any person who at any time since the beginning of the last two fiscal years of such company has acted as legal counsel for such company, "(v) any broker or dealer registered under the Securities Exchange Act of 1934 or any affiliated person of such a broker or dealer, and "(vi) any natural person whom the Commission by order shall have determined to be an interested person by reason of having had, at any time since the beginning of the last two fiscal years of such company, a material business or professional relationship with such company or with the principal executive officer of such company or with any other investment company having the same investment adviser or principal underwriter or with the principal executive officer of such other investment company: Provided, That no person shall be deemed to be an interested person of an investment company solely by reason of (aa) his being a member of its board of directors or advisory board or an owner of its securities, or (bb) his membership in the immediate family of any person specified in clause (aa) of this proviso; and " (B) when used with respect to an investment adviser of or principal underwriter for any investment company— "(i) any affiliated person of such investment adviser or principal underwriter, "(ii) any member of the immediate family of any natural person who is an affiliated person of such investment adviser or principal underwriter, "(iii) any person who knowingly has any direct or indirect beneficial interest in, or who is designated as trustee, executor, or guardian of any legal interest in, any security issued either by such investment adviser or principal underwriter or by a controlling person of such investment adviser or principal underwriter,

December 14, 1S'70 [S.2224]

Investment Company Amendments Act of 1970. 54 Stat. 790.

"Interested person."

48 Stat. 8 8 1. 15 USC 78a.

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Page:United States Statutes at Large Volume 84 Part 2.djvu/84

 1414

48 Stat. 8 8 1. 15 USC 78a.

••Member of the immediate family."

"Separate account."

••Savings and loan association,»»

54 Stat. 8 1 1.

Exemptions. 54 Stat. 797. 80 Stat. 243.

PUBLIC LAW 91-547-DEC. 14, 1970

[84 STAT.

"(iv) any person or partner or employee of any person who at any time since the beginning of the last two fiscal years of such investment company has acted as legal counsel for such investment adviser or prmcipal underwriter, "(v) any broker or dealer registered under the Securities Exchange Act of 1934 or any affiliated person of such a broker or dealer, and • •, "(vi) any natural person whom the Commission by order shall have determined to be an interested person by reason of having had at any time since the beginning of the last two fiscal years of such investment company a material business or professional relationship with such investment adviser or principal underwriter or with the i^rincipal executive officer or any controlling person of such investment adviser or principal underwriter. For the purposes of this paragraph (19), 'member of the immediate family' means any parent, spouse of a parent, child, spouse of a child, spouse, brother, or sister, and includes step and adoptive relationships. The Commission may modify or revoke any order issued under clause (vi) of subparagraph (A) or (B) of this paragraph whenever it finds that such order is no long^er consistent with the facts. No order issued pursuant to clause (vi) of subparagraph (A) or (B) of this paragraph shall become effective until at least sixty days after the entry thereof, and no such order shall affect the status of any person for the purposes of this title or for any other purpose for any period prior to the effective date of such order.'' (4) A new paragraph is inserted immediately after redesignated paragraph (36) (formerly paragraph (35)) as follows: "(37) 'Separate account' means an account established and maintained by an insurance company pursuant to the laws of any State or territory of the United States, or of Canada or any province thereof, 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." (5) A new paragraph is inserted immediately after redesignated paragraph (44) (formerly paragraph (42)) as follows: "(45) 'Savings and loan association' means a savings and loan association, building and loan association, cooperative bank, homestead association, or similar institution, which is supervised and examined by State or Federal authority having supervision over any such institution, and a receiver, conservator, or other liquidating agent of any such institution." (b) Section 13(b) of such Act (15 U.S.C. 80a-13(b)) is amended by striking out "paragraph (40)" and inserting in lieu thereof "paragraph (42)". SEC. 3. (a) The second sentence of paragraph (2) of section 3(b) of the Investment Company Act of 1940 (15 U.S.C. 80a-3 (b)(2)) is amended by inserting "in good faith" after "paragraph". (b) Section 3(c) of such Act (15 U.S.C. 80a-3(c)) is amended as follows: ^' (1) The material preceding paragraph (1) is amended to read as follows: ^ "(c) Notwithstanding subsection (a), none of the following persons IS an investment company within the meaning of this title:". (2) Strike paragraph (8); redesignate paragraphs (5) through (15) as paragraphs (4) through (13), respectively; and strike "paragraphs

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Page:United States Statutes at Large Volume 84 Part 2.djvu/85

 84 STAT. ]

PUBLIC LAW 91-547-DEC. 14, 1970

(B), (6), and (6) " in redesignated paragraph (6) (formerly paragraph m) and insert in lieu thereof "paragraphs (8), (4), and (5)''. (8) Redesignated paragraph (6) (former!v paragraph (6)) is amended by inserting "redeemable securities, before "face-amount certificates. (4) Redesig^iated paragraph (8) (formerly paragraph (10)) is amended to read as follows: "(8) Any company subject to regulation under the Public Utility Holding Company Act of 1935." (6) Redesignated paragraph (11) (formerly paragraph (13)) is amended to read as follows: "(11) Any employees' stock bonus, pension, or profit-sharing trust which meets the requirements for qualification under section 401 of the Internal Revenue Code of 1954; or any collective trust fund maintained by a bank consisting solely of assets of such trusts; or any separate account the assets of which are derived solely from (A) contributions under pension or profit-sharing plans which meet the requirements of such section or the requirements for deduction of the employer's contribution under section 404(a)(2) of such Code, and (B) advances made by an insurance company in connection with the operation of such separate account." (c)(1) Section 8(b)(2) of such Act (15 U.S.C. 80a-8(b)(2)) is amended to read as follows: "(2) a recital of all investment policies of the registrant, not enumerated in paragraph (1), which are changeable only if authorized by shareholder vote;". (2) Paragrajjhs (3) and (4) are redesignated as paragraphs (4) and (5),respectively. (3) A new paragraph is inserted immediately after paragraph (2) to read as follows: " (3) a recital of all policies of the registrant, not enumerated in paragraphs (1) and (2), in respect of matters which the registrant deems matters of fundamental policy;". (d) Section 13(a)(3) of such Act (15 U.S.C. 80a-13(a)(3)) is amended to read as follows: "(3) deviate from its policy in respect of concentration of investments in any particular industry or group of industries as recited in its registration statement, deviate from any investment policy which is changeable only if authorized b j shareholder vote, or deviate from any policy recited in its registration statement pursuant to section 8(b)(3); ". SEC. 4. (a) That part of section 9(a) of the Investment Company Act of 1940 (15 U.S.C 80a-9(a)) which precedes paragraph (1) is amended by inserting "employee," before "officer". (b) Section 9 of such Act (15 U.S.C. 80a-9) is further amended hj redesignating subsection (b) as subsection (c) and inserting immediately after subsection (a) a new subsection to read as follows: " (b) The Commission may, after notice and opportunity for hearing, by order prohibit, conditionally or unconditionally, either permanently or for such period of time as it in its discretion shall deem appropriate in the public interest, any person from serving or acting as an employee, officer, director, member of an advisory board, investment adviser or depositor of, or principal underwriter for, a registered investment company or affiliated person of such investment adviser, depositor, or principal underwriter, if such person— "(1) has willfully made or caused to be made in any registration statement, application or rejjort filed with the Commission under this title any statement which was at the time and in the light of the circumstances under which it was made false or

1415

54 Stat. 798. 15 USC 80a-:i,

49 Stat. 838. 15 USC 79. Certain truit fundi and accounts, exclualon. 68A Stat. 134| 76 Stat. 809, 1141> 80 Stat. 1577. 26 USC 4 0 1.

26 USC 404.

Registration statement. Policy changeable only by shareholder vote. 54 Stat. 804, Fundamental policy.

Investment policy deviation, prohibition.

Supra, Ineligibility.

Certain p e r s o n s serving investment c o m p a n i e s, SEC administrative a c t i o n.

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Page:United States Statutes at Large Volume 84 Part 2.djvu/86

 1416

48 15 54 15

PUBLIC LAW 91-547-DEC. 14, 1970

Stat. 74,881. u s e 77a, 78a. Stat. 847. u s e 80b-l.

Board of directors, restrictions. 54 Stat. 806.

Bank collective funds for managing agency accounts, exemptions. Supra,

[84 STAT.

misleading with respect to any material fact, or has omitted to state in any such registration statement, application, or report any material fact which was required to be stated therein; or "(2) has willfully violated any provision of the Securities Act of 1933, or of the Securities Exchange Act of 1934, or of title II of this Act, or of this title, or of any rule or regulation under any of such statutes; or "(3) has willfully aided, abetted, counseled, commanded, induced, or procured the violation by any other person of the Securities Act of 1933, or of the Securities Exchange Act of 1934, or of title II of this Act, or of this title, or of any rule or regulation under any of such statutes." SEC. 5. (a) Section 10(a) of the Investment Company Act of 1940 (15 U.S.C. 80a-10 (a)) is amended to read as follows: " (a) Xo registered investment company shall have a board of directors more than 60 per centum of the members of which are persons who are interested persons of such registered company." (b) Section 10(b) of such Act (15 U.S.C. 80a-10(b)) is amended— (1) by striking out "After one year from the effective date of this title, no" and inserting in lieu thereof "No"; and (2) by striking out "affiliated", each place it appears in paragraph (2) and inserting in lieu thereof "interested". (c) Section 10(c) of such Act (15 U.S.C. 80a-10(c)) is amended to read as follows: "(c) No registered investment company shall have a majority of its board of directors consisting of persons who are officers, directors, or employees of any one bank, except that, if on March 15, 1940, any registered inA'estment company had a majority of its directors consisting of persons who are directors, officers, or employees of any one bank, such company may continue to have the same percentage of its board of directors consisting of persons who are directors, officers, or employees of such bank." (d) Section 10(d) of such Act (15 U.S.C. 80a-10(d)) is amended to read as follows: " (d) Notwithstanding subsections (a) and (b)(2) of this section, a registered investment company may have a board of directors all the members of which, except one, are interested persons of the investment adviser of such company, or are officers or employees of such company, if— " (1) such investment company is an open-end company; "(2) such investment adviser is registered under title II of this Act and is engaged principally in the business of rendering investment supervisory services as defined in title II; " (3) no sales load is charged on securities issued by such investment company; " (4) any premium over net asset value charged by such company upon the issuance of any such security, plus any discount from net asset value charged on redemption thereof, shall not in the aggregate exceed 2 per centum; "(5) no sales or promotion expenses are incurred by such registered company; but expenses incurred in complying with laws regulating the issue or sale of securities shall not be deemed sales or promotion expenses; "(6) such investment adviser is the only investment adviser to such investment company, and such investment adviser does not receive a management fee exceeding 1 per centum per annum of the value of such company's net assets averaged over the year or taken as of a definite date or dates within the year;

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Native American Apology Resolution

Native American Apology Resolution

111th CONGRESS

1st Session

S. J. RES. 14

To acknowledge a long history of official depredations and ill-conceived policies by the Federal Government regarding Indian tribes and offer an apology to all Native Peoples on behalf of the United States.

IN THE SENATE OF THE UNITED STATES

April 30, 2009

Mr. BROWNBACK (for himself, Mr. INOUYE, Mr. BAUCUS, Mrs. BOXER, Mr. CRAPO, Ms. CANTWELL, Mr. COBURN, Mr. HARKIN, Mr. LIEBERMAN, and Mr. TESTER) introduced the following joint resolution; which was read twice and referred to the Committee on Indian Affairs

JOINT RESOLUTION

To acknowledge a long history of official depredations and ill-conceived policies by the Federal Government regarding Indian tribes and offer an apology to all Native Peoples on behalf of the United States.

Whereas the ancestors of today’s Native Peoples inhabited the land of the present-day United States since time immemorial and for thousands of years before the arrival of people of European descent;

Whereas for millennia, Native Peoples have honored, protected, and stewarded this land we cherish;

Whereas Native Peoples are spiritual people with a deep and abiding belief in the Creator, and for millennia Native Peoples have maintained a powerful spiritual connection to this land, as evidenced by their customs and legends;

Whereas the arrival of Europeans in North America opened a new chapter in the history of Native Peoples;

Whereas while establishment of permanent European settlements in North America did stir conflict with nearby Indian tribes, peaceful and mutually beneficial interactions also took place;

Whereas the foundational English settlements in Jamestown, Virginia, and Plymouth, Massachusetts, owed their survival in large measure to the compassion and aid of Native Peoples in the vicinities of the settlements;

Whereas in the infancy of the United States, the founders of the Republic expressed their desire for a just relationship with the Indian tribes, as evidenced by the Northwest Ordinance enacted by Congress in 1787, which begins with the phrase, `The utmost good faith shall always be observed toward the Indians’;

Whereas Indian tribes provided great assistance to the fledgling Republic as it strengthened and grew, including invaluable help to Meriwether Lewis and William Clark on their epic journey from St. Louis, Missouri, to the Pacific Coast;

Whereas Native Peoples and non-Native settlers engaged in numerous armed conflicts in which unfortunately, both took innocent lives, including those of women and children;

Whereas the Federal Government violated many of the treaties ratified by Congress and other diplomatic agreements with Indian tribes;

Whereas the United States forced Indian tribes and their citizens to move away from their traditional homelands and onto federally established and controlled reservations, in accordance with such Acts as the Act of May 28, 1830 (4 Stat. 411, chapter 148) (commonly known as the `Indian Removal Act’);

Whereas many Native Peoples suffered and perished–

(1) during the execution of the official Federal Government policy of forced removal, including the infamous Trail of Tears and Long Walk;

(2) during bloody armed confrontations and massacres, such as the Sand Creek Massacre in 1864 and the Wounded Knee Massacre in 1890; and

(3) on numerous Indian reservations;

Whereas the Federal Government condemned the traditions, beliefs, and customs of Native Peoples and endeavored to assimilate them by such policies as the redistribution of land under the Act of February 8, 1887 (25 U.S.C. 331; 24 Stat. 388, chapter 119) (commonly known as the `General Allotment Act’), and the forcible removal of Native children from their families to faraway boarding schools where their Native practices and languages were degraded and forbidden;

Whereas officials of the Federal Government and private United States citizens harmed Native Peoples by the unlawful acquisition of recognized tribal land and the theft of tribal resources and assets from recognized tribal land;

Whereas the policies of the Federal Government toward Indian tribes and the breaking of covenants with Indian tribes have contributed to the severe social ills and economic troubles in many Native communities today;

Whereas despite the wrongs committed against Native Peoples by the United States, Native Peoples have remained committed to the protection of this great land, as evidenced by the fact that, on a per capita basis, more Native Peoples have served in the United States Armed Forces and placed themselves in harm’s way in defense of the United States in every major military conflict than any other ethnic group;

Whereas Indian tribes have actively influenced the public life of the United States by continued cooperation with Congress and the Department of the Interior, through the involvement of Native individuals in official Federal Government positions, and by leadership of their own sovereign Indian tribes;

Whereas Indian tribes are resilient and determined to preserve, develop, and transmit to future generations their unique cultural identities;

Whereas the National Museum of the American Indian was established within the Smithsonian Institution as a living memorial to Native Peoples and their traditions; and

Whereas Native Peoples are endowed by their Creator with certain unalienable rights, and among those are life, liberty, and the pursuit of happiness: Now, therefore, be it

Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. RESOLUTION OF APOLOGY TO NATIVE PEOPLES OF THE UNITED STATES.

(a) Acknowledgment and Apology- The United States, acting through Congress–

(1) recognizes the special legal and political relationship Indian tribes have with the United States and the solemn covenant with the land we share;

(2) commends and honors Native Peoples for the thousands of years that they have stewarded and protected this land;

(3) recognizes that there have been years of official depredations, ill-conceived policies, and the breaking of covenants by the Federal Government regarding Indian tribes;

(4) apologizes on behalf of the people of the United States to all Native Peoples for the many instances of violence, maltreatment, and neglect inflicted on Native Peoples by citizens of the United States;

(5) expresses its regret for the ramifications of former wrongs and its commitment to build on the positive relationships of the past and present to move toward a brighter future where all the people of this land live reconciled as brothers and sisters, and harmoniously steward and protect this land together;

(6) urges the President to acknowledge the wrongs of the United States against Indian tribes in the history of the United States in order to bring healing to this land; and

(7) commends the State governments that have begun reconciliation efforts with recognized Indian tribes located in their boundaries and encourages all State governments similarly to work toward reconciling relationships with Indian tribes within their boundaries.

(b) Disclaimer- Nothing in this Joint Resolution–

(1) authorizes or supports any claim against the United States; or

(2) serves as a settlement of any claim against the United States.

title: Native American Apology Resolution


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"(7) all executive salaries and executive expenses and office rent of such investment company are paid by such investment adviser; and "(8) such investment company has only one class of securities outstanding, each unit of which has equal voting rights with every other unit." SEC. 6. Section 11(b) of the Investment Company Act of 1940 (15 Reorganization, U.S.C. 8 0 a - l l (b)) is amended to read as follows: ser/TfLres. " (b) The provisions of this section shall not apply to any offer made 54 Stat. sos. pursuant to any plan of reorganization, which is submitted to and requires the approval of the holders of at least a majority of the outstanding shares of the class or series to which the security owned by the offeree belongs." SEC. 7. Section 12(d) of the Investment Company Act of 1940 (15 companie°s^fnmi. U.S.C. 80a-12(d) is amended to read as follows: tations. " (d)(1)(A) I t shall be unlawful for any registered investment company (the 'acquiring company') and any company or companies controlled by such acquiring company to purchase or otherwise acquire any security issued by any other investment company (the 'acquired company'), and for any investment company (the 'acquiring company') and any company or companies controlled hj such acquiring company to purchase or otherwise acquire a n j security issued by any registered investment company (the 'acquired company'), if the acquiring company and any company or companies controlled by it immediately alter such purchase or acquisition own in the aggregate— " (i) more than 3 per centum of the total outstanding voting stock of the ac(juired company; " (ii) securities issued by the acquired company having an aggregate value in excess of 5 per centum of the value of the total assets of the acquiring company; or "(iii) securities issued by the acquired company and all other investment companies (other than Treasury stock of the acquiring company) having an aggregate value in excess of 10 per centum of the value of the total assets of the acquiring company. " (B) I t shall be unlawful for any registered open-end investment company (the 'acquired company'), any principal underwriter therefor, or any broker or dealer registered under the Securities Exchange Act of 1934, knowingly to sell or otherwise dispose of any security is- ^s stau ssi. sued by the acquired company to any other investment company (the 15 USC 78a. 'acquiring company') or any company or companies controlled by the acquiring company, if immediately after such sale or disposition— " (i) more than 3 per centum of the total outstanding voting stock of the acquired company is owned by the acquiring company and any company or companies controlled by it; or "(ii) more than 10 per centum of the total outstanding voting stock of the acquired company is owned by the acquiring company and other investment companies and companies controlled by them. " (C) I t shall be unlawful for any investment company (the 'acquiring company') and any company or companies controlled by the acquiring company to purchase or otherwise acquire any security issued by a registered closed-end investment company, if immediately after such purchase or acquisition the acquiring company, other investment companies having the same investment adviser, and companies controlled by such investment companies, own more than 10 per centum of the total outstanding voting stock of such closed-end company.

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PUBLIC LAW 91-547-DEC. 14, 1970

[84 STAT.

i'(D) The provisioiis of this paragraph (1) shall not apply to a security received as a dividend or as a result of an otter of exchange Ante, p. 1417. approved pursuant to section 11 or of a plan of reorganization of any company (other than a plan devised for the purpose of evading the foregoing provisions). ,, v, n "(E) The provisions of this paragraph (1) shall not apply to a security (or securitiies) purchased or acquired by an investment company if— . j. "(i) the depositor of, or principal underwriter for, such mvestment company is a broker or dealer registered under the Securities 48 Stat. 881. Exchauffe Act of 1034, or a person controlled by such a broker or IS use 78a. dealer: "(ii) such security is the only investment security held by such investment company (or such "securities are the only investment securities hold by such investment company, if such investment company is a registered unit investment trust that issues two or more classes or series of securities, each of which provides for the accumulation of shares of a dilterent investment company); and "(iii) in the event such investment company^ is not a registered investment company, the purchase or acquisition is made pursuant to an arrangement with the issuer of, or principal underwriter for the issuer of, the security whereby such mvestment company is obligated— "(aa) eitlier to seek instructions from its security holders with regard to the voting of all proxies with respect to such security and to vote such proxies only in accordance with such instructions, or to vote the shares held by it in the same proportion as the vote of all other holders of such security, and "(bb) to refrain from substituting such security unless the Commission shall have approved such substitution in the Post, p. 1424. manner provided in section 26 of this Act. "(F)^ The provisions of this paragraph (1) shall not apply to securities purchased or otherwise acquired by a registered investment company if— "(i) immediately after such purchase or acquisition not more than 3 per centum of the total outstanding stock of such issuer is owned by such registered investment company and all affiliated persons of such registered investment company; and " (ii) such registered investment company has not offered or sold after January 1, 1971, and is not proposing to offer or sell any security issued by it through a principal underwriter or otherwise at a public offering price which includes a sales load of more than IV2 per centum. Xo issuer of any security purchased or acquired by a registered investment company pursuant to this subparagraph shall be obligated to redeem such security in an amount exceeding 1 per centum of such issuers total outstanding securities during any period of less than thirty days. Sucli investment company shall exercise voting rights by proxy or otherwise with respect to any security purchased or acquired pursuant to this subparagraph in the manner prescribed by subparagraph (E) of thissubRoction. "(G) For the purposes of this paragraph (1), the value of an investment company's total assets shall be computed as of the time of a purchase or acquisition or as closely thereto as it reasonably possible. "(H) In any action brought to enforce the provisions of this paragraph (1), the Commission may join as a party the issuer of any f^ecurity purchased or otherwise acquired in violation of this para-

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«rnipli (1), and the fourt may issue any order with respect to such issuer as may be necessary or appropriate for the enforcement of the l)rovisions of this paragraph (1). ''(2) It shall be unhnvful for any registered investment company and any company or companies controlled b}^ such registered investment company to purchase or otherwise acquire any security (except a security received as a dividend or as a result of a plan of reorganization of any company, other than a plan devised for the purpose of evading the provisions of this paragraph) issued by any insurance company of which such registered investment company and any company or companies controlled by such registered company do not, at the time of such purchase or acquisition, own in the aggregate at least 25 per centum of the total outstanding voting stock, if such registered company and any company or companies controlled by it own in the aggregate, or as a result of such purchase or acquisition will own in the aggregate, more than 10 per centum of the total outstanding voting stock of such insurance company. ''(8) It shall be unlawful for any registered investment company and any company or companies controlled by such registered investment company to purchase or otherwise acquire any security issued by or any other interest in the business of any person who is a broker, a dealer, is engaged in the business of underwriting, or is either an investment adviser of an investment company or an investment adviser Stat. 847. registered under title II of this Act, unless (A) such person is a cor- 54 USC 80b-l. 15 poration all the outstanding securities of which (other than shortterm paper, securities representing bank loans, and directors* qualifying shares) are, or after such acquisition will be, owned by one or more registered investment companies; and (B) such person is primarily engaged in the business of underwriting and distributing securities issued by other persons, selling securities to customers, or any one or more of such or related activities, and the gross income of such person normally is derived principally from such business or related activities." Investment SE(\ 8. (a) Section lo(a) of the Investment Company Act of 1940 adviser, contract (15 I '. S. ( \ 80a-15(a)) is amended to read as follows: requirements. " (a) It shall be unlawful for any person to serve or act as investment 54 Stat. 812. adviser of a registered investment compan;^, except pursuant to a written contract, which contract, whether with such registered com))any or with an investment adviser of such registered company, has been approved by the vote of a majority of the outstanding voting securities of such registered company, and— " (1) precisely describes all compensation to be paid thereunder; "(2) shall continue in effect for a period more than two years from the date of its execution, only so long as such continuance is specifically approved at least annually by the board of directors or by vote of a majority of the outstanding voting securities of such company; "(3) provides, in substance, that it may be terminated at any time, without the payment of any penalty, by the board of directors of such registered company or by vote of a majority of the outstanding voting securities of such company on not more than sixty days' written notice to the investment adviser; and "(4) provides, in substance, for its automatic termination in the event of its assignment." Principal under(b) Section 15(b) of such Act (15 U.S.C. 80a-15(b)) is amended to writer, contract requirements. read as follows: •'(b) It shall be unlawful for any principal underwriter for a registered open-end company to offer for sale, sell, or deliver after sale any security of which such company is the issuer, except pursuant to a written contract with such company, which contract—

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Advisory and underwriting contracts, approval. 54 Stat. 813.

Securities, custody.

54 Stat. 827. 15 USC 80a-26. 48 Stat. 8 8 1. 15 USC 78a.

PUBLIC LAW 91-547-DEC. 14, 1970

[84 STAT.

"(1) shall continue in effect for a period more than two years from the date of its execution, only so long as such continuance is specifically approved at least annually by the board of directors or by vote of a majority of the outstanding voting securities of such company; and "(2) provides, in substance, for its automatic termination in the event of its assignment." (c) Section 15(c) of such Act (15 U.S.C. 80a-15(c)) is amended to read as follows: "(c) In addition to the requirements of subsections (a) and (b) of this section, it shall be unlawful for any registered investment company having a board of directors to enter into, renew, or perform any contract or agreement, written or oral, whereby a person undertakes regularly to serve or act as investment adviser of or principal underwriter for such company, unless the terms of such contract or agreement and any renewal thereof have been approved by the vote of a majority of directors, who are not parties to such contract or agreement or interested persons of any such party, cast in person at a meeting called for the purpose of voting on such approval. I t shall be the duty of the directors of a registered investment company to request and evaluate, and the duty of an investment adviser to such company to furnish, such information as may reasonably be necessary to evaluate the terms of any contract whereby a person undertakes regularly to serve or act as investment adviser of such company." (d) Section 15 of such Act (15 U.S.C. 80a-15) is amended Iby striking out subsection (d) and redesignating subsections (e) and (f) as subsections (d) and (e), respectively. SEC. 9. (a) Section 17(f) of the Investment Company Act of 1940 (15 U.S.C. 80a-17(f)) is amended to read as follows: "(f) Every registered management company shall place and maintain its securities and similar investments in the custody of (1) a bank or banks having the qualifications prescribed in paragraph (1) of section 26(a) of this title for the trustees of unit investment trusts; or (2) a company which is a member of a national securities exchange as defined in the Securities Exchange Act of 1934, subject to such rules and regulations as the Commission may from time to time prescribe for the protection of investors; or (3) such registered company, but only in accordance with such rules and regulations or orders as the Commission may from time to time prescribe for the protection of investors. Subject to such rules, regulations, and orders as the Commission may adopt as necessary or appropriate for the protection of investors, a registered management company or any such custodian, with the consent of the registered management company for which it acts as custodian, may deposit all or any part of the securities owned by such registered management company in a system for the central handling of securities established by a national securities exchange or national securities association registered with the Commission under the Securities Exchange Act of 1934, or such other person as may be permitted by the Commission, pursuant to which system all securities of any particular class or series of any issuer deposited within the system are treated as fungible and may be transferred or pledged by bookkeeping entry without physical delivery of such securities. Rules, regulations, and orders of the Commission under this subsection, among other things, may make appropriate provision with respect to such matters as the earmarking, segregation, and hypothecation of such securities and investments, and may provide for or require periodic or other inspections by any or all of the following: Independent public accountants, employees and agents of the Commission, and such other persons as the Commission may designate. No such member

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STAT.]

PUBLIC LAW 91-547-DEC. 14, 1970

which trades in securities for its own account may act as custodian except in accordance with rules and regulations prescribed by the Commission for the protection of investors. If a registered company maintains its securities and similar investments in the custody of a qualified bank or banks, the cash proceeds from the sale of such securities and similar investments and other cash assets of the company shall likewise be kept in the custody of such a bank or banks, or in accordance with such rules and regulations or orders as the Commission may from time to time prescribe for the protection of investors, except that such a registered company may maintain a checking account in a bank or banks having the qualifications prescribed in paragraph (1) of section 26(a) of this title for the trustees of unit investment trusts with the balance of such account or the aggregate balances of such accounts at no time in excess of the amount of the fidelity bond, maintained pursuant to section 17(g) of this title, covering the officers or employees authorized to draw on such account or accounts." (b) Section 17(g) of such Act (15 U.S.C. 80a-l7(g)) is amended to read as follows: " (g) The Commission is authorized to require by rules and regulations or orders for the protection of investors that any officer or employee of a registered management investment company who may singly, or jointly with others, have access to securities or funds of any registered company, either directly or through authority to draw upon such funds or to direct generally the disposition of such securities (unless the officer or employee has such access solely through his position as an officer or employee of a bank) be bonded by a reputable fidelity insurance company against larceny and embezzlement in such reasonable minimum amounts as the Commission may prescribe." (c) Section 17 of such Act (15 U.S.C. 80a-17) is further amended by adding at the end thereof a new subsection as follows: "(j) It shall be unlawful for any affiliated person of or principal underwriter for a registered investment company or any affiliated person of an investment adviser of or principal underwriter for a registered investment company, to engage in any act, practice, or course of business in connection with the purchase or sale, directly or indirectly, by such person of any security held or to be acquired by such registered investment company in contravention of such rules and regulations as the Commission may adopt to define, and prescribe means reasonably necessary to prevent, such acts, practices, or courses of business as are fraudulent, deceptive or manipulative. Such rules and regulations may include requirements for the adoption of codes of ethics by registered investment companies and investment advisers of, and principal underwriters for, such investment companies establishing such standards as are reasonably necessary to prevent such acts, practices, or courses of business." SEC. 10. Section 18(f)(2) of the Investment Company Act of 1940 (15 U.S.C. 80a-18(f)(2)) is amended to read as follows: "(2) 'Senior security' shall not, in the case of a registered open-end company, include a class or classes or a number of series of preferred or special stock each of which is preferred over all other classes or series in respect of assets specifically allocated to that class or series: Provided, That (A) such company has outstanding no class or series of stock which is not so preferred over all other classes or series, or (B) the only other outstanding class of the issuer's stock consists of a common stock upon which no dividend (other than a liquidating dividend) is permitted to be paid and which in the aggregate represents not more than one-half of 1 per centum of the issuer's outstanding voting securities. For the purpose of insuring fair and equitable treatment of the holders of the outstanding voting securities of each class or series of

1421

54 Stat. 827. 15 USC 80a-26. Infra, Securities or funds in custody of bank, a c c e s s, bonding. 54 Stat. 816.

Insider trading, prohibition.

"Senior security."

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