text:
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[85 STAT.

one corporation, the limitation provided by subsection (a)(1) shall be applied with respect to the aggregate of such dividends." ofi'^rlnQo^o^^* 26 USC 922.

Ante, p. 535.

(^) WESTER]sr

Ante, p. 544.

Ante, p. 547. 84 Stat. 1836.

74 Stat. 998.

Ante, p, 538, Ante, p. 544, 68A Stat. 732; 78 Stat. 843.

TRADE

CORPORATIONS.—Section

922

(relating to special deduction for Western Hemisphere Trade Corporations) is amended by adding at the end thereof the following: "No deduction shall be allowed under this section to a corporation for a taxable year for which it is a D I S C or in which it owns at any time stock in a D I S C or former D I S C (as defined in section 992(a))." (d)

jAs^^^iool^

HEMISPHERE

INCOME FROM SOURCES W I T H I N POSSESSIONS or THE UNITED

STATES.—Section 931(a) (relating to the general rule applicable to income from sources within possessions of the United States) is amended by adding at the end thereof the following: "This section shall not apply in the case of a corporation for a taxable year for which it is a D I S C or in which it owns at any time stock in a D I S C or former D I S C (as defined in section 992(a)")." ^®^ INCLUDIBLE CORPORATIONS.—Section 1504(b) (relating to definition of "includible corporations") is amended by adding at the end thereof the following new paragraph: " (7) A D I S C or former D I S C (as defined in section 992(a))." (f) BASIS or D I S C STOCK ACQUIRED FROM DECEDENT.—Section 1014 (relating to basis of property acquired from a decedent) is amended by adding at the end thereof the following new subsection: " (d) SPECIAL RULE W I T H RESPECT TO D I S C STOCK.—If stock owned by a decedent in a D I S C or former D I S C (as defined in section 992 (a)) acquires a new basis under subsection (a), such basis (determined before the application of this subsection) shall be reduced by the amount (if any) which would have been included in gross income under section 995(c) as a dividend if the decedent had lived and sold the stock at its fair market value on the estate tax valuation date. I n computing the gain the decedent would have had if he had lived and sold the stock, his basis shall be determined without regard to the last Sentence of section 996(e)(2) (relating to reductions of basis of D I S C stock). For purposes of this subsection, the estate tax valuation date is the date of the decedent's death or, in the case of an election nuder section 2032, the applicable valuation date prescribed by that section." SEC. 503. SOURCE OF INCOME. Section 861(a)(2) (relating to dividends) is amended— (1) by deleting the period at the end of subparagraph (C) and inserting in lieu thereof ", or"; and (2) by inserting the following new subparagraph (D) immediately after subparagraph (C) as amended: " (D) from a DISC or former D I S C (as defined in section 992(a)) except to the extent attributable (as determined under regulations prescribed by the Secretary or his delegate) to Qualified export receipts described in section 993(a)(1) (otlicr thau lutercst and gains described in section 995(b) (1))." SEC. 504. PROCEDURE AND ADMINISTRATION. (a) RETURNS.—Section 6011 (relating to general requirement of return, statement, or list) is amended by redesignating subsection (e) as subsection (f) and by adding a new subsection (e) which reads as follows: "(e) RETURNS, ETC., or D I S C S AND FORMER DISCS.— "(1) RECORDS AND INFORMATION.—A D I S C or former D I S C shall for the taxable year— " (A) furnish such information to persons who were shareholders at any time during such taxable year, and to the Secretary or his delegate, and

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Page:United States Statutes at Large Volume 85.djvu/581

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PUBLIC LAW 92-178-DEC. 10, 1971

" (B) keep such records, as may be required by regulations prescribed by the Secretary or his delegate. "(2) RETURNS.—A D I S C shall file for the taxable year such returns as may be prescribed by the Secretary or his delegate by forms or regulations." (b) RETURNS or CORPORATIONS.—Section 6072(b) (relating to returns of corporations) is amended by adding at the end thereof the following: "Returns required for a taxable year by section 6011(e)(2) (relating to returns of a D I S C) shall be filedon or before the fifteenth clay of the ninth month following the close of the taxable year." (relating to certain income tax returns of corporations) is amended by adding at the end thereof the following new paragraph: " (3) DISC.—If a corporation determines in good faith that it is a D I S C (as defined in section 992(a)) and files a return as such under section 6011(e)(2) and if such corporation is thereafter held to be a corporation which is not a D I S C for the taxable year for which the return is filed, such return shall be deemed the return of a corporation which is not a D I S C for purposes of this section." (d) FAILURE OF D I S C To F I L E RETURNS.—Subchapter B of chapter 68 (relating; to assessable penalties) is amended by addins: at the end thereof the following new section: " I n addition to the penalty imposed by section 7203 (relating to wailful failure to file return, supply information, or pay tax) any person required to supply information or to file a return under section 6011(e) who fails to supply such information or file such return at the time prescribed by the Secretary or his delegate, or who files a return which does not show the information required, shall pay a penalty of $100 for each failure to supply information (but the total amount imposed on the delinquent person for all such failures during any calendar year shall not exceed $25,000) or a penalty of $1,000 for each failure to file a return, unless it is shown that such failure is due to reasonable cause." SEC. 505. EXPORT TRADE CORPORATIONS. (a) U S E OF TERMS.—Except as otherwise expressly provided, whenever in this section a reference is made to a section, chapter, or other provision, the reference shall be considered to be made to a section, chapter, or other provision of the Internal Revenue Code of 1954, and terms used in this section shall have the same meaning as when used in such Code. (b) TRANSFER TO A D I S C OF ASSETS OF EXPORT TRADE CORPORA-
 * (c) CERTAIN INCOME TAX RETURNS OF DISC.—Section 6501(g)
 * SEC. 6686. FAILURE OF DISC TO FILE RETURNS.

551

26^^*^*V'*^' ^"^^' P* ^^°' ^^ Stat. 1662.

^"'^' P* ^^^'

^^ Stat. 524.

^"'®» P* SSO.

26 USC r\* ^* ^ ^^'^'

TION.—

(1) IN GENERAL.—If a corporation (hereinafter in this section called "parent") owns all of the outstanding stock of an export trade corporation (as defined in section 971), and the export trade corporation, during a taxable year beginning before January 1, 1976, transfers property, without receiving consideration, to a D I S C (as defined in section 992(a)) all of whose outstanding stock is owned by the parent, and if the amount transferred by the export.trade corporation is not less than the amount of its untaxed subpart F income (as defined in paragraph (2) of this subsection) at the time of such transfer, then— (A) notwithstanding section 367 or any other provision of chapter 1, no gain or loss to the export trade corporation, the parent, or the D I S C shall be recognized by reason of such transfer;

Post, p. 553.

^'^ Stat. 2065,,

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license: Creative Commons - Attribution Share-Alike - https://creativecommons.org/licenses/by-sa/4.0/


text:
Page:United States Statutes at Large Volume 85.djvu/582

 552

Ante, p. 550,

26 ulc 97T* 84^s ^*^'o68^'

PUBLIC LAW 92-178-DEC. 10, 1971

[85 STAT.

(B) the earnings and profits of the D I S C shall be increased by the amount transferred to it by the export trade corporation and such amount shall be included in accumulated D I S C iucome, and for purposes of section 8 6 1 (a)(2)(D) shall be considered to be qualified export receipts; (C) the adjusted basis of the assets transferred to the D I S C shall be the same in the hands of the D I S C as in the hands of the export trade corporation; (D) the earnings and profits of the export trade corporation shall be reduced by the amount transferred to the D I S C, to the extent thereof, with the reduction being applied first to the untaxed subpart F income and then to the other earnings and profits in the order in which they were most recently accumulated; (E) the basis of the parent's stock in the export trade corporation shall be decreased by the amount obtained by multiplying its basis in such stock by a fraction the numerator of which is the amount transferred to the D I S C and the denominator of which is the aggregate adjusted basis of all the assets of the export trade corporation immediately before such transfer; (F) the basis of the parent's stock in the D I S C shall be increased by the amount of the reduction under subparagraph (E) of its basis in the stock of the export trade corporation; (G) the property transferred to the D I S C shall not be considered to reduce the investments of the export trade corporation in export trade assets for purposes of applying secti«n 970 (b); and (H) any foreign income taxes which would have been deemed under section 902 to have been paid by the parent if the transfer had been made to the parent shall be treated as foreign income taxes paid by the DISC. For purposes of this section, the amount transferred by the export trade corporation to the D I S C shall be the aggregate of the adjusted basis of the properties transferred, with proper adjustment for any indebtedness secured by such property or assumed by the D I S C in connection with the transfer. For purposes of this section, a foreign corporation which qualified as an export trade corporation for any 3 taxable years beginning before November 1, 1971, shall be treated as an export trade corporation. (2) DEFINITION OF UNTAXED SUBPART F INCOME.—For purposes

26 USC 970. 76 Stat. 1031.

of this section, the term "untaxed subpart F income" means with respect to an export trade corporation the amount by which— (A) the sum of the amounts by which the subpart F income of such corporation was reduced for the taxable year and all prior taxable years under section 970(a) and the amounts not included in subpart F income (determined without regard to subpart G of subchapter N of chapter 1) for all prior taxable years by reason of the application of section 972, exceeds (B) the sum of the amounts which were included in the gross income of the shareholders of such corporation under section 951(a)(1)(A) (ii) and under the provision of section 970(b) for all prior taxable years, determined without regard to the transfer of property described in paragraph (1) of this subsection. (3) SPECIAL CASES.—If the provisions of paragraph (1) of this subsection are not applicable solely because the export trade corporation or the D I S C, or both, are not owned in the manner prescribed in such paragraph, the provisions shall nevertheless

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text:
Letter to Chrestus of Syracuse

Constantine Augustus to Chrestus, bishop of Syracuse.

Already on a former occasion, when some in a base and perverse manner began to create divisions with regard to the worship of the holy and heavenly power, and the catholic religion, in my desire to cut short such dissensions among them, I had given orders Lo the effect that certain bishops should be sent from Gaul, nay further, that the opposing parties, who were contending stubbornly and persistently together, should be summoned from Africa; that so, in the presence also of the bishop of Rome, this question which appeared to have been raised might through their coming receive a right solution by means of a careful examination in every particular.

But since, as it happens, some, forgetful both of their own salvation and of the reverence they owe to their most holy religion, even now do not cease to perpetuate their private enmities, being unwilling to conform to the judgement already passed, and affirming that after all it was a few persons who gave their opinions and decisions, or that they were in a hurry to pass judgement very speedily and sharply without having first accurately examined all those matters that ought to have been investigated ; and since, as a result of all this, it has come to pass that even those very persons who ought to be of one mind in brotherly concord are separate from each other in a disgraceful, nay rather in an abominable, fashion, and give to those men whose souls are strangers to this most holy religion an occasion to scoff, it became incumbent upon me to provide that that which ought to have ceased by voluntary agreement, after the judgement already passed, may even now, if possible, be ended by the presence of many persons.

We have therefore commanded that very many bishops from various and numberless places should assemble at the city of Aries by the first of August.

title: Letter to Chrestus of Syracuse


text:
Page:United States Statutes at Large Volume 85.djvu/583

 85 STAT.]

PUBLIC LAW 92-1 7 8 - D E C. 10, 1971

be applicable in such cases to the extent, and in 9,ccordance with such rules, as may be prescribed by the Secretary or his delegate. (4) TREATMENT or EXPORT TRADE ASSETS.—If the provisions of this subsection are applicable, accounts receivable held by an export trade corporation and transferred to a D I S C, to the extent such receivables were export trade assets in the hands of the export trade corporation, shall be treated as qualified export assets for purposes of section 993(b). (c) LIMITATION OF APPLICATION or SUBPART G.—Section 971(a) (relating to definition of export trade corporation) is amended by adding at the end thereof the following new paragraph: "(3) LIMITATION.—No controlled foreign corporation may qualify as an export trade corporation for any taxable year beginning after October 31, 1971, unless it qualified as un export trade corporation for any taxable year beginning before suoh date. If a corporation fails to qualify as an export trade corporation for a period of any 3 consecutive taxable years beginning after such date, it may not qualify as an export trade corporation for amy taxable year beginning after such period." SEC. 506. SUBMISSION OF ANNUAL REPORTS TO CONGRESS. The Secretary of the Treasury shall, commencing for the calendar year 1972, submit an annual report to the Congress within 15i/^ months following the close of each calendar year setting forth an analysis of the operation and effect of the provisions of this title. SEC. 507. GENERAL EFFECTIVE DATE OF TITLE. Except as provided in section 505 of this title, the amendments made by sections 501 through 504 of this title shall apply with respect to taxable years ending after December 31, 1971, except that a corporation may not be a D I S C (as defined in section 992(a) of the Internal Revenue Code of 1954, added by section 501 of this title) for any taxable year beginning before January 1, 1972.

553

^"'^' "' ^^^• 26u*sc97°i?*

TITLE VI—JOB DEVELOPMENT RELATED TO WORK INCENTIVE PROGRAM SEC. 60L TAX CREDIT FOR CERTAIN EXPENSES INCURRED IN WORK INCENTIVE PROGRAM. (a) ALLOWANCE or CREDIT.—Subpart A of part IV of subchapter A of chapter 1 (relating to credits allowable) is amended by renumber- y/stlf'ieV^^' ing section 40 as section 42, and by inserting after section 39 the following new section: "SEC. 40. EXPENSES OF WORK INCENTIVE PROGRAMS. " (a) GENERAL RULE.—There shall be allowed, as a credit against the tax imposed by this chapter, the amount determined under subpart C Infra. of this part. " (b) REGULATIONS.—The Secretary or his delegate shall prescribe such regulations as may be necessary to carry out the purposes of this section and subpart C." (b) COMPUTATION OF CREDIT.—Part IV of subchapter A of chapter 1 (relating to credits against tax) is amended by adding at the end thereof the following new subpart: "Subpart C—Rules for Computing Credit for Expenses of Work Incentive Programs "Sec. 50A. Amount of credit. "Sec. oOB. Definitions; special rules.

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Page:United States Statutes at Large Volume 85.djvu/584

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PUBLIC LAW 92-178-DEC. 10, 1971

[85 STAT.

"SEC. 50A. AMOUNT OF CREDIT. " (a) DETERMINATION OF AMOUNT.—• " (1) GENERAL RULE.—The amount of the credit allowed by sec-

Ante, p. 553. Post, p. 556.

^JQJ^ 40 fQj. ^he taxable year shall be equal to 20 percent of the work incentive program expenses (as defined in section 5 0 B (a)). " (2) LIMITATION BASED ON AMOUNT or TAX.—Notwithstanding

ae'usc^ 33!^* 78 Stat. 24, 33. 76 Stat. 962. Post, p. 560. 83 Stat. 5 8 0.

^ 6 8 Stat. 179, ^^A 80*Stat. 113. 80 Stat. 99.

78 Stat. 120; ^

Ante,

p. 553.

paragraph (1), the credit allowed by section 40 for the taxable year shall not exceed— " (A) so much of the liability for tax for the taxable year as does not exceed $25,000, plus " (B) 50 percent of so much of the liability for tax for the taxable year as exceeds $25,000. "(3) LIABILITY FOR TAX.—For purposes of paragraph (2), the liability for tax for the taxable year shall be the tax imposed by this chapter for such year, reduced by the sum of the credits allowable under— " ( ^) section 33 (relating to foreign tax credit), " (B) section 35 (relating to partially tax exempt interest), " (C) section 37 (relatingto retirement lucome), " (D) section 38 (relating to investment in certain depreciable property), and "(^-^ section 41 (relating to contributions to candidates for public office). For purposes of this paragraph, any tax imposed for the taxable year by section 56 (relating to minimum tax for tax preferences), section 531 (relating to accumulated earnings tax), section 541 (relating to personal holding company tax), or section 1378 (relating to tax on certain capital gains of subchapter S corporations), and any additional tax imposed for the taxable year by section 1351(d)(1) (relating to recoveries of foreign expropriation losses), shall not be considered tax imposed by this chapter for such year. "(4) MARRIED INDIVIDUALS.—In the case of a husband or wife who files a separate return, the amount specified under subparagraphs (A) and (B) of paragraph (2) shall be $12,500 in lieu of $25,000. This paragraph shall not apply if the spouse of the taxpayer has no work incentive program expenses for, and no unused credit carryback or carryover to, the taxable year of such spouse which ends within or with the taxpayer's taxable year. "(5) CONTROLLED GROUPS.—In the case of a controlled group, the $25,000 amount specified under paragraph (2) shall be reduced for each component member of such group by apportioning $25,000 among the component members of such group in such manner as the Secretary or his delegate shall by regulations prescribe. For purposes of the preceding sentence, the term 'controlled group' has the meaning assigned to such term by section 1563(a). " (b) CARRYBACK AND CARRYOVER OF UNUSED CREDIT.— "(1) ALLOWANCE OF CREDIT.—If the amount of the credit

determined under subsection (a)(1) for any taxable year exceeds the limitation provided by subsection (a)(2) for such taxable year (hereinafter in this subsection referred to as 'unused credit year'), such excess shall be— " (A) a work incentive program credit carryback to each of the 3 taxable years preceding the unused credit year, and " (B) a work incentive program credit carryover to each of the 7 taxable years following the unused credit year, and shall be added to the amount allowable as a credit Sy section 40 for such years, except that such excess may be a carryback only to a taxable year beginning after December 31, 1971. The entire amount of the unused credit for an unused credit year shall be

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text:
Page:United States Statutes at Large Volume 85.djvu/585

 85 STAT. ]

PUBLIC LAW 92-178-DEC. 10, 1971

555

carried to the earliest of the 10 taxable years to which (by reason of subparagraphs (A) and (B)) such credit may be carried, and then to each of the other 9 taxable years to the extent that, because of the limitation contained in paragraph (2), such unused credit may not be added for a prior taxable year to which such unused credit may be carried. " (2) LIMITATION.—The amount of the unused credit which may be added under paragraph (1) for any preceding or succeeding taxable year shall not exceed the amount by which the limitation provided by subsection (a)(2) for such taxable year exceeds the sum of— " (A) the credit allowable under subsection (a)(1) for such taxable year, and " (B) the amounts which, by reason of this subsection, are added to the amount allowable for such taxable year and attributable to taxable years preceding the unused credit year. "(c)

EARLY TERMINATION OF EMPLOYMENT BY EMPLOYER, E T C. — "(1) GENERAL RULE.—Under regulations prescribed by the

Secretary or his delegate— "(A)

WORK

INCENTIVE

PROGRAM

EXPENSES.—If

the

employment of any employee with respect to whom work incentive program expenses are taken into account under subsection (a) is terminated by the taxpayer at any time during the first 12 months of such employment (whether or not consecutive) or before the close of the 12th calendar month after the calendar month in which such employee completes 12 months of employment with the taxpayer, the tax under this chapter for the taxable year in which such employment is terminated shall be increased by an amount (determined under such regulations) equal to the credits allowed under section 40 for such taxable year and all prior taxable years attributable to work incentive program expenses paid or incurred with respect to such employee. " (B) CARRYBACKS AND CARRYOVERS ADJUSTED.—In the case of any termination of employment to which subparagraph (A) applies, the carrybacks and carryovers under subsection (b) shall be properly adjusted. "(2)

'^"'®' ^' ^^^'

SUBSECTION NOT TO APPLY I N CERTAIN CASES.—

" (A) IN GENERAL.—Paragraph (1) shall not apply to— " (i) a termination of employment of an employee who voluntarily leaves the employment of the taxpayer, "(ii) a termination of employment of an individual who, before the close of the period referred to in paragraph (1)(A), becomes disabled to perform the services of such employment, unless such disability is removed before the close of such period and the taxpayer fails to offer reemployment to such individual, or "(iii) a termination of employment of an individual, if it is determined under the applicable State unemployment compensation law that the termination was due to the misconduct of such individual. " (B) CHANGE I N FORM OF BUSINESS, ETC.—For purposes of paragraph (1), the employment relationship between the taxpayer and an employee shall not be treated as terminated— " (i) by a transaction to which section 381(a) applies, if the employee continues to be employed by the acquiring corporation, or "(ii) by reason of a mere change in the form of conducting the trade or business of the taxpayer, if the employee continues to be employed in such trade or busi-

26^80^*38^*'

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text:
Page:United States Statutes at Large Volume 85.djvu/586

 556

PUBLIC LAW 92-178-DEC. 10, 1971

[85 STAT.

ness and the taxpayer retains a substantial interest in such trade or business. " (3) SPECIAL RULE.—Any increase in tax under paragraph (1) shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit allowable under subpart A. " (d) FAILURE TO P A Y COMPARABLE WAGES.— " (1) GENERAL RULE.—Under regulations prescribed

^"^^^'

Ante,

p. 553,

26 USC 31.

?2 USC 632'.*

by the Secretary or his delegate, if during the period described in subsection (c)(1)(A), the taxpayer pays wages (as defined in section 50B (b)) to an employee with respect to whom work incentive program expenses are taken into account under subsection (a) which are less than the wages paid to other employees who perform comparable services, the tax under this chapter for the taxable year in which such wages are so paid shall be increased by an amount (determined under such regulations) equal to the credits allowed under section 40 for such taxable year and all prior taxable years attributable to work incentive program expenses paid or incurred with respect to such employee, and the carrybacks and carryovers under subsection (b) shall be properly adjusted. " (2) SPECIAL RULE.—Any increase in tax under paragraph (1) shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit allowable under subpart A. "SEC. SOB. DEFINITIONS; SPECIAL RULES. " (a) WORK INCENTIVE PROGRAM EXPENSES.—For purposes of this subpart, the term 'work incentive program expenses' means the wages paid or incurred by the taxpayer for services rendered during the first 12 months of employment (whether or not consecutive) of employees Avho are certified by the Secretary of Labor as— " (1) having been placed in employment under a work incentive program established under section 432(b)(1) of the Social SecurityAct,and _ _ " (2) not having displaced any individual from employment. " (b) WAGES.—For purposes of subsection (a), the term 'wages' means only cash remuneration (including amounts deducted and withheld). " (c) LIMITATIONS.— "(1) TRADE OR BUSINESS EXPENSES.—No

68^|^at.^43.

item shall be taken into account under subsection (a) unless such item is incurred in a trade or business of the taxpayer. "(2) REIMBURSED EXPENSES.—No item shall be taken into account under subsection (a) to the extent that the taxpayer is reimbursed for such item. "(3) GEOGRAPHICAL LIMITATION.—No item shall be taken into account under subsection (a) with respect to any expense paid or incurred by the taxpayer with respect to employment outside the United States. "(4) MAXIMUM PERIOD or TRAINING OR INSTRUCTION.—No item with respect to any employee shall be taken into account under subsection (a) after the end of the 24-month period beginning with the date of initial employment of such employee by the taxpayer. "(5) INELIGIBLE INDIVIDUALS.—No item shall be taken into account under subsection (a) with respect to an individual who— " (A) bears any of the relationships described in paragraphs (1) through (8) of section 152(a) to the taxpayer, or, if the taxpayer is a corporation, to an individual who owns, directly or indirectly, more than 50 percent in value of the outstanding stock of the corporation (determined with the application of section 267(c)),

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text:
Page:United States Statutes at Large Volume 85.djvu/587

 85 STAT. ]

PUBLIC LAW 92-178-DEC. 10, 1971

557

" (B) if the taxpayer is an estate or trust, is a grantor, beneficiary, or fiduciary of the estate or trust, or is an individual who bears any of the relationships described in paragraphs (1) through (8) of section 152(a) to a grantor, 26'us*c\'5'2^' beneficiary, or fiduciary of the estate or trust, or " (C) is a dependent (described in section 152(a)(9)_) of 72 Stat. 1607. the taxpayer, or, if the taxpayer is a corporation, of an individual described in subparagraph (A), or, if the taxpayer is an estate or trust, of a grantor, beneficiary, or fiduciary of the estate or trust. •*(d) SUBCHAPTER S CORPORATIONS.—In case of an electing small business corporation (as defined in section 1371)— 78^stat^\*i2^^°' "(1) the work incentive program expenses for each taxable year shall be apportioned pro rata among the persons who are shareholders of such corporation on the last day of such taxable year, and "(2) any person to whom any expenses have been apportioned under paragraph (1) shall be treated (for purposes of this subpart) as the taxpayer with respect to such expenses. "(e) ESTATES AND TRUSTS.—In the case of an estate or trust— " (1) the work incentive program expenses for any taxable year shall be apportioned between the estate or trust and the beneficiaries on the basis of the income of the estate or trust allocable to each, "(2) any beneficiary to whom any expenses have been apportioned under paragraph (1) shall be treated (for purposes of this subpart) as the taxpayer with respect to such expenses, and "(3) the $25,000 amount specified under subparagraphs (A) and (B) of section 50A(a)(2) applicable to such estate or trust shall ^"'^' ^' ^^'** be reduced to an amount which bears the same ratio to $25,000 as the amount of the expenses allocated to the trust under paragraph ^1) bears to the entire amount of such expenses. " (i) LIMITATIONS W I T H RESPECT TO CERTAIN PERSONS.—In the case of— " (1) an organization to which section 593 applies, 83^3181^6*20!^' "(2) a regulated investment company or a real estate investment trust subject to taxation under subchapter M (section 851 ga^sut!*?!*?.^^^' and following), and 76 Stat. 1045. " (3) a cooperative organization described in section 1381(a), rules similar to the rules provided in section 46(d) shall apply under Ante, p. 507. regulations prescribed by the Secretary or his delegate. " (g) CROSS REFERENCE.—

"For application of this subpart to certain acquiring corporations, see section 381(c) (24)." (c) TECHNICAL AND CLERICAL AMENDMENTS.—

(1) The table of subparts for part IV of subchapter A of chapter 1 is amended by adding at the end thereof the following: "Subpart C. Rules for computing credit for expenses of work incentive programs." (2) The table of sections of subpart A of part IV of subchapter A of chapter 1 is amended by striking out the last item and inserting in lieu thereof the following: "Sec. 40. Expenses of work incentive programs. "Sec. 41. Contributions to candidates for public office. "Sec. 42. Overpayments of tax.

(3) Section 381(c) (relating to items taken into account in certain ^!^ ^*^^' ^^4; corporate acquisitions) is amended by adding at the end thereof the ^^ *^*' ^''^' following new paragraph:

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text:
Page:United States Statutes at Large Volume 85.djvu/588

 558

PUBLIC LAW 92-178-DEC. 10, 1971 "(24)

Ante, p. 553.

84 Stat, 1846.

Post, p. 560.

^68A Stat.^803; 83 Stat. 525.

" °'°' "^^

68A Stat, 7 7 1.

78 Stat. 858.

[85 STAT.

CREDIT UNDER SECTION 4O FOR WORK INCENTIVE PROGRAM

EXPENSES.—The acquiring corporation shall take into account (to the extent proper to carry out the purposes of this section and section 40, and under such regulations as may be prescribed by the Secretary or his delegate) the items required to be taken into account for purposes of section 40 in respect of the distributor or transferor corporation." (4) Section 56(a)(2) (relating to imposition of minimum tax for tax preferences) is amended— (A) by striking out "and" at the end of clause (ii), (B) by striking out "; and" at the end of clause (iii) and inserting in lieu thereof a comma, and (C) by inserting after clause (iii) the following new clauses: "(iv) section 40 (relating to expenses of work incentive program), and "("^) section 41 (relating to contributions to candidates for public office); and". (5) Section 56(c)(1) (relating to tax carryovers) is amended— (A) by striking out "and" at the end of subparagraph (B), (B) by striking out "exceed" at the end of subparagraph (C), and (C) by inserting after subparagraph (C) the following new subparagraphs: " (D) section 40 (relating to expenses of work incentive program), and " (E) section 41 (relating to contributions to candidates for public office), exceed", (d) STATUTES OF LIMITATIONS AND INTEREST RELATING TO WORK INCENTIVE CREDIT CARRYBACKS.— (1) ASSESSMENT AND COLLECTION. S c c t i o U 6 5 0 1 ( r e l a t i n g tO

limitation on assessment and collection) is amended by adding at the end thereof the following new subsection: "(o) WORK INCENTIVE PROGRAM CREDIT CARRYBACKS.—In the case of a deficienc}^ attributable to the application to the taxpayer of a work incentive program credit carryback (including deficiencies which may be assessed pursuant to the provisions of section 6213(b) (2)), such deficiency may be assessed at any time before the expiration of the period withm which a deficiency for the taxable year of the unused work incentive program credit which results in such carryback may be assessed, or, with respect to any portion of a work incentive program credit carryback from a taxable year attributable to a net operating loss carryback or a capital loss carryback from a subsequent taxable year, at any time before the expiration of the period within which a deficiency for such subsequent taxable year may be assessed." (^2) CREDIT O REFUND.—Section 6511(d) (relating to limitaR tions on credit or refund) is amended by adding at the end thereof the following new paragraph: "(7) SPECIAL PERIOD OF LIMITATION WITH RESPECT TO WORK INCENTIVE P R O G R A M CREDIT CARRYBACKS. " (A) PERIOD OF LIMITATION.—If the claim for credit or

refund relates to an overpayment attributable to a work incentive program credit carryback, in lieu of the 3-year period of limitation prescribed in subsection (a), the period shall be that period which ends with the expiration of the 15th day of the 40th month (or 39th month, in the case of a corporation) following the end of the taxable year of the unused work incentive program credit which results in such carry-

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back (or, with respect to any portion of a work incentive program credit carryback from a taxable year attributable to a net operating loss carryback or a capital loss carryback from a subsequent taxable year, the period shall be that period which ends with the expiration of the 15th day of the 40th month, or 39th month, in the case of a corporation, following the year of such taxable year) or the period prescribed in subsection (c) in respect of such taxable year, whichever • expires later. I n the case of such a claim, the amount of the credit or refund may exceed the portion of the tax paid within the period provided in subsection (b)(2) or (c), whichever is applicable, to the extent of the amount of the overpayment attributable to such carryback. " (B) APPLICABLE RULES.—If the allowance of a credit or

refund of an overpayment of tax attributable to a work incentive program credit carryback is otherwise prevented by the operation of any law or rule of law other than section 7122, relating to compromises, such credit or refund may be 68A sStat. 849. 26 u e 7122. allowed or made, if claim therefor is filed within the period provided in subparagraph (A) of this paragraph. In the case of any such claim for credit or refund, the determination by any court, including the Tax Court, in any proceeding in which the decision of the court has become final, shall not be conclusive with respect to the work incentive program credit, and the effect of such credit, to the extent that such credit is affected by a carryback which was not in issue in such proceeding." (3) INTEREST ON UNDERPAYMENTS.—Section 6601(e) (relating ys^stausss!^' to income tax reduced by carryback or adjustment for certain unused deductions) is amended by adding at the end thereof the following new paragraph: " (4) WORK INCENTIVE PROGRAM CREDIT CARRYBACK.—If the credit allowed by section 40 for any taxable year is increased by reason of a work incentive program credit carryback, such increase shall not affect the computation of interest under this section for the period ending with the last day of the taxable year in which the work incentive program credit carryback arises, or, with respect to any portion of a work incentive program carryback from a taxable year attributable to a net operating loss carryback or a capital loss carryback from a subsequent taxable year, such increase shall not affect the computation of interest under this section for the period ending with the last day of such subsequent taxable year." (4) INTEREST ON OVERPAYMENTS.—Section 6611(f) (relating to refund of income tax caused by carryback or adjustment for certain unused deductions) is amended by adding at the end thereof the following new paragraph: "(4) WORK INCENTIVE PROGRAM CREDIT CARRYBACK.—For purposes of subsection (a), if any overpayment of tax imposed by subtitle A results from a work incentive program credit carryback, such overpayment shall be deemed not to have been made prior to the close of the taxable year in which such work incentive program credit carryback arises, or, with respect to any portion of a work incentive program credit carryback from a taxable year attributable to a net operating loss carryback or a capital loss carryback from a subsequent taxable year, such overpayment shall be deemed not to have been made prior to the close of such subsequent taxable year."

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8 3^stt^*^39^^^'

26 USC 6411.

Ante. p. 554.

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[85 STAT.

(e) TENTATIVE CARRYBACK ADJUSTMENTS.— (1) APPLICATION FOR ADJUSTMENT.—Section 6411 (relating to

quick refunds in respect of tentative carryback adjustments) is amended— (A) by striking out "or unused investment credit" each place it ajppears in such section and inserting in lieu thereof "unused investment credit, or unused work incentive program credit", (B) by inserting after "section 46(b)," in the first sentence of subsection (a) "by a work incentive program carryback provided iu section oOA (b),", and (C) by inserting after "investment credit carryback" in the second sentence of subsection (a) "or a work incentive program carryback". (2) TENTATIVE CARRYBACK ADJUSTMENT ASSESSMENT PERIOD.—

80 Stat. 1151.

Section 6501(m) (relating to tentative carryback adjustment period) is amended— (A) by striking out "or an investment credit carryback" and inserting in lieu thereof "an investment credit carryback, or a work incentive program carryback", and (B) by striking out " (h) or (j) " each place it appears and inserting in lieu thereof " (h), (j), or (o)". (f) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 1971.

TITLE VII—TAX INCENTIVES FOR CONTRIBUTIONS TO CANDIDATES FOR PUBLIC OFFICE 7/sfat^*i67^^'

SEC. 701. ALLOWANCE OF CREDIT. (^) Subpart A of part IV of subchapter A of chapter 1 (relating to credits against tax) is amended by inserting after section 40 (as added by section 601 of this Act) the following new section: "SEC. 41. CONTRIBUTIONS TO CANDIDATES FOR PUBLIC OFFICE. " (a) GENERAL RULE. — I n the case of an individual, there shall be allowed, subject to the limitations of subsection (b), as a credit against the tax imposed by this chapter for the taxable year, an afmount equal to one-half of all political contributions, payment of which is made by the taxpayer within the taxable year. " (b) LIMITATIONS.— "(1) MAXIMUM CREDIT.—The

84 Stat. 2063.

credit allowed by subsection (a) for a taxable year shall be limited to $12.50 ($25 in the case of ^ joint r c t u m under section 6013). " (2) APPLICATION WITH OTHER CREDITS.—The credit allowed by

76 Stat. 962.

subsection (a) shall not exceed the amount of the tax imposed by this chapter for the taxable year reduced by the sum of the credits allowable under section 33 (relating to foreign tax credit), section 35 (relating to partially tax-exempt interest), section 37 (relating to retirement income), and section 38 (relating to investment in certain depreciable property). "(3) VERIFICATION.—The credit allowed by subsection (a) shall be allowed, with respect to any political contribution, only if such political contribution is verified in such manner as the Secretary or his delegate shall prescribe by regulations. " (c) DEFINITIONS.—For purposes of this section— "(1) POLITICAL CONTRIBUTION.—The term 'political contribution' means a contribution or gift of money to—

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" (A) an individual who is a candidate for nomination or election to any Federal, State, or local elective public office in any primary, general, or special election, for use by such individual to further his candidacy for nomination or election to such office; " (B) any committee, association, or organization (whether or not incorporated) organized and operated exclusively for the purpose of influencing, or attempting to influence, the nomination or election of one or more individuals who are candidates for nomination or election to any Federal, State, or local elective public office, for use by such committee, association, or organization to further the candidacy of such individual or individuals for nomination or election to such office; " (C) the national committee of a national political party; " (D) the State committee of a national political party as designated by the national committee of such party; or " (E) a local committee of a national political party as designated by the State committee of such party designated under subparagraph (D), "(2) CANDIDATE.—The term 'candidate' means, with respect to any Federal, State, or local elective public office, an individual Avho— " (A) has publicly announced that he is a candidate for nomination or election to such office; and " (B) meets the qualifications prescribed by law to hold such office. "(3) NATIONAL POLITICAL PARTY.—The term 'national ix>litical party' means— " (A) in the case of contributions made during a taxable year of the taxpayer in which the electors of President and Vice President are chosen, a political party presenting candidates or electors for such offices on the official election ballot of ten or more States, or " (B) in the case of contributions made during any other taxable year of the taxpayer, a political party which met the qualifications described in subparagraph (A) in the last preceding election of a President and Vice President. "(4) STATE AND LOCAL.—The term 'State' means the various States and the District of Columbia; and the term 'local' means a political subdivision or part thereof, or two or more political subdivisions or parts thereof, of a State. "(d)

CROSS REFERENCES.—

"For disallowance of credits to estates and trusts, see section 642(a)(3)." (b) Section 642(a) (relating to credits against tax for estates and ^SA Stat. 215; trusts) is amended by adding at the end thereof the following new '^^2rusc 6*42. paragraph: " (3) POLITICAL CONTRIBUTIONS.—An estate or trust shall not be allowed the credit against tax for political contributions provided by section 41." ^"'^'?• seo. SEC. 702. DEDUCTION IN LIEU OF CREDIT. (a) Part VII of subchapter B of chapter 1 (relating to additional j^lti^^o ^^' itemized deductions for individuals) is amended by redesignating section 218 as 219, and by inserting after section 217 the following new section: "SEC. 218. CONTRIBUTIONS TO CANDIDATES FOR PUBLIC OFFICE. " (a) ALLOWANCE or DEDUCTION.—In the case of an individual, there shall be allowed as a deduction any political contribution (as defined

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[85 STAT.

'm section 41(c)(1)) payment of which is made by such individual within the taxable year. " (b) LIMITATIONS.—

8/stlf*2063^^' 26 USC 601*3.

"(1) AMOUNT.—The deduction under subsection (a) shall not exceed $50 ($100 in the case of a joint return under section 6013). " (2) VERIFICATION.—The deduction under subsection (a) shall be allowed, with respect to any political contribution, only if such political contribution is verified in such manner as the Secretary or his delegate shall prescribe by regulations. "(c) ELECTION TO TAKE CREDIT I N L I E U OF DEDUCTION.—This

section shall not apply in the case of any taxpayer who, for the taxable year, elects to take the credit against tax provided by section 41 (relating to credit against tax for contributions to candidates for public office). Such election shall be made in such manner and at such time as the Secretary or his delegate shall prescribe by regulations. " (d) CROSS EEFERENCE.—

78 Stat. 32.

Ante, p. 561.

"For disallowance of deduction to estates and trusts, see section 642(i)." ^j^^ Section 642 (relating to special rules for credits and deductions for estates and trusts) is amended by redesignating subsection (i) as subsection (j), and by inserting after subsection (h) a new subsection as follows: "(i) POLITICAL CONTRIBUTIONS.—An estate or trust shall not be allowed the deduction for contributions to candidates for public office provided by section 218." (c) The table of sections of part VII of subchapter B of chapter 1 is amended by striking out the last item and inserting in lieu thereof the following: "Sec. 218. Contributions to candidates for public office. "Sec. 219. Cross references." SEC. 703. EFFECTIVE DATE.

The amendments made by this title shall apply to taxable years ending after December 31, 1971, but only with respect to political contributions, payment of which is made after such date.

TITLE VIII—FINANCING OF PRESIDENTIAL ELECTION CAMPAIGNS SEC. 801. PRESIDENTIAL ELECTION CAMPAIGN FUND ACT.

The Internal Revenue Code of 1954 is amended by adding at the end thereof the following new subtitle:

"Subtitle H—Financing of Presidential Election Campaigns "Chapter 95. Presidential election campaign fund. "Chapter 96. Presidential election campaign fund advisory board.

"CHAPTER 95—PRESIDENTIAL ELECTION CAMPAIGN FUND "Sec. "Sec. "Sec. "Sec. "Sec. "Sec. "Sec. "Sec.

9001. 9002. 9003. 9004. 9005. 9006. 9007. 9008.

Short title. Definitions. Condition for eligibility for payments. Entitlement of eligible candidates to payments. Certification by Comptroller General. Payments to eligible candidates. Examinations and audits; repayments. Information on proposed expenses.

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"Sec. 9009. Reports to Congress; regulations. "Sec. 9010. Participation by Comptroller General in judicial proceedings. "Sec. 9011. Judicial review. "Sec. 9012. Criminal penalties. "Sec. 9013. Effective date of chapter. "SEC. 9001. SHORT TITLE. "This chapter may be cited as the 'Presidential Election Campaign

Fund Act'. "SEC. 9002. DEFINITIONS. " For purposes of this chapter— " (1) The term 'authorized committee' means, with respect to the candidates of a political party for President and Vice President of the United States, any political committee which is authorized in writing by such candidates to incur expenses to further the election of such candidates. Such authorization shall be addressed to the chairman of such political committee, and a copy of such authorization shall be filed by such candidates with the Comptroller General. Any withdrawal of any authorization shall also be in writing and shall be addressed and filed in the same manner as the authorization. "(2) The term 'candidate' means, with respect to any presidential election, an individual who (A) has been nominated for election to the office of President of the United States or the office of Vice President of the United States by a major party, or (B) has qualified to have his name on the election ballot (or to have the names of electors pledged to him on the election ballot) as the candidate of a political party for election to either such office in 10 or more States. For purposes of paragraphs (6) and (7) of this section and purposes of section 9004(a)(2), the term 'candidate' means, with respect to any preceding presidential election, an individual who received popular votes for the office of President in such election. "(3) The term 'Comptroller General' means the Comptroller General of the United States. "(4) The term 'eligible candidates' means the candidates of a political party for President and Vice President of the United States who have met all applicable conditions for eligibility to receive payments under this chapter set forth in sootion 9003. "(5) The term 'fund' means the Presidential Election Campaign Fund established by section 9006(a). "(6) The term 'major party' means, with respect to any presidential election, a political party whose candidate for the office of President in the preceding presidential election received, as the candidate of such party, 25 percent or more of the total number of popular votes received by all candidates for such office. "(7) The term 'minor party' means, with respect to any presidential election, a political party whose candidate for the office of President in the preceding presidential election received, as the candidate of such party, 5 percent or more but less than 25 percent of the total number of popular votes received by all candidates for such office. "(8) The term 'new party' means, with respect to any presidential election, a political party which is neither a major party nor a minor party. " (9) The term 'political committee' means any committee, association, or organization (whether or not incorporated) which accepts contributions or makes expenditures for the purpose of influencing, or attempting to influence, the nomination or election of one or more individuals to Federal, State, or local elective public office. 75-432 O - 72 - 38

563

Citation of title*

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"(10) The term 'presidential election' means the election of presidential and vice-presidential electors. "(11) The term 'qualified campaign expense' means an expense— " (A) incurred (i) by the candidate of a political party for the office of President to further his election to such office or to further the election of the candidate of such political party for the office of Vice President, or both (ii) by the candidate of a political party for the office of Vice President to further his election to such office or to further the election of the candidate of such political party for the office of President, or both, or (iii) by an authorized committee of the candidates of a political party for the offices of President and Vice President to further the election of either or both of such candidates to such offices, " (B) incurred within the expenditure report period (as defined in paragraph (12)), or incurred before the beginning of such period to the extent such expense is for property, services, or facilities used during such period, and " (C) neither the incurring nor payment of which constitutes a violation of any law of the United States or of the State in which such expense is incurred or paid. A n expense shall be considered as incurred by a candidate or an authorized committee if it is incurred by a person authorized by such candidate or such committee, as the case may be, to incur such expense on behalf of such candidate or such committee. If an authorized committee of the candidates of a political party for President and Vice President of the United States also incurs expenses to further the election of one or more other individuals to Federal, State, or local elective public office, expenses incurred by such committee which are not specifically to further the election of such other individual or individuals shall be considered as incurred to further the election of such candidates for President and Vice President in such proportion as the Comptroller General prescribes by rules or regulations. " (12) The term 'expenditure report period' with respect to any presidential election means— " (A) in the case of a major party, the period beginning with the first day of September before the election, or, if earlier, with the date on which such major party at its national convention nominated its candidate for election to the office of President of the United States, and ending 30 days after the date of the presidential election; and " (B) in the case of a party which is not a major party, the same period as the expenditure report period of the major party which has the shortest expenditure report period for such presidential election under subparagraph (A). "SEC. 9003. CONDITION FOR ELIGIBILITY FOR PAYMENTS.

" (a) IN GENERAL.—In order to be eligible to receive any payments under section 9006, the candidates of a political party in a presidential election shall, in writing— "(1) agree to ootain and furnish to the Comptroller General such evidence as he may request of the qualified campaign expenses with respect to which payment is sought, "(2) agree to keep and furnish to the Comptroller General such records, books, and other information as he may request, "(3) agree to an audit and examination by the Comptroller General under section 9007 and to pay any amounts required to be paid under such section, and

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" (4) agree to furnish statements of qualified campaign expenses and proposed qualified campaign expenses required under section 9008. " (b) MAJOR PARTIES.—In order to be eligible to receive any payments under section 9006, the candidates of a major party in a presidential election shall certify to the Comptroller General, under penalty of perjury, that— "(1) such candidates and their authorized committees will not incur qualified campaign expenses in excess of the aggregate payments to which they will be entitled under section 9004, and "(2) no contributions to defray qualified campaign expenses have been or will be accepted by such candidates or any of their authorized committees except to the extent necessary to make up any deficiency in payments received out of the fund on account of the application of section 9006(c), and no contributions to defray expenses which would be qualified campaign expenses but for subparagraph (C) of section 9002(11) have been or will be accepted by such candidates or any of their authorized committees. Such certification shall be made within such time prior to the day of the presidential election as the Comptroller General shall prescribe by rules or regulations. " (c) MINOR AND NEW PARTIES.—In order to be eligible to receive

any payments under section 9006, the candidates of a minor or new party in a presidential election shall certify to the Comptroller General, under penalty of perjury, that— "(1) such candidates and their authorized committees will not incur qualified campaign expenses in excess of the aggregate payments to which the eligible candidates of a major party are entitled under section 9004, and "(2) such candidates and their authorized committees will accept and expend or retain contributions to defray qualified campaign expenses only to the extent that the qualified campaign expenses incurred by such candidates and their authorized committees certified to under paragraph (1) exceed the aggregate payments received by such candidates out of the fund pursuant to section 9006. Such certification shall be made within such time prior to the day of the presidential election as the Comptroller General shall prescribe by rules or regulations. "SEC. 9004. ENTITLEMENT OF ELIGIBLE CANDIDATES TO PAYMENTS.

" (a) IN GENERAL.—Subject to the provisions of this (Chapter— " (1) The eligible candidates of a major party in a presidential election shall be entitled to payments under section 9006 equal in the aggresrate to 15 cents multiplied by the total number of residents within the United States who have attained the age of 18, as determined by the Bureau of the Census, as of the first day of June of the year preceding the year of the presidential election. "(2)(A) The eligible candidates of a minor party in a presidential election shall be entitled to payments under section 9006 equal in the aggregate to an amount which bears the same ratio to the amount computed under paragraph (1) for a major party as the number of popular votes received by the candidate for President of the minor party, as such candidate, in the preceding presidential election bears to the average number of popular votes received by the candidates for President of the major parties in the preceding presidential election. " (B) If the candidate of one or more political parties (not including a major party) for the office of President was a candidate for such office in the preceding presidential election and

565

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[85 STAT.

received 5 percent or more but less than 25 percent of the total number of popular votes received by all candidates for such office, such candidate and his running mate for the office of Vice President, upon compliance with the provisions of section 9003(a) and (c), shall be treated as eligible candidates entitled to payments under section 9006 in an amount computed as provided in subparagraph (A^ by taking into account all the popular votes received by such candidate for the office of President in the preceding presidential election. If eligible candidates of a minor party are entitled to payments under this subparagraph, such entitlement shall be reduced by the amount of the entitlement allowed under subparagraph (A). " (3) The eligible candidates of a minor party or a new party in a presidential election whose candidate for President in such election receives, as such candidate, 5 percent or more of the total number of popular votes cast for the office of President in such election shall be entitled to payments under section 9006 eqvial in the aggregate to an amount which bears the same ratio to the amount computed under paragraph (1) for a major party as the number of popular votes received by such candidate in such election bears to the average number of popular votes received in such election by the candidates for President of the major parties. In the case of eligible candidates entitled to payments under paragraph (2), the amount allowable under this paragraph shall be limited to the amount, if any, by which the entitlement under the preceding sentence exceeds the amount of the entitlement under paragraph (2)" (b) LIMITATIONS.—The aggregate payments to which the eligible candidates of a political party shall be entitled under subsections (a) (2) and (3) with respect to a presidential election shall not exceed an amount equal to the lower of— "(1) the amount of qualified campaign expenses incurred by such eligible candidates and their authorized committees, reduced by the amount of contributions to defray qualified campaign expenses received and expended or retained b}^ such eligible candidates and such committees, or " (2) the aggregate payments to which the eligible candidates of a major party are entitled under subsection (a)(1), reduced by the amount of contributions described in paragraph (1) of this subsection. '•(c) RESTRICTIONS.—The eligible candidates of a political party .shall be entitled to payments under subsection (a) only— "(1) to defray qualified campaign expenses incurred by such eligible candidates or their authorized committees, or "(2) to repay loans the proceeds of which were used to defray such qualified campaign expenses, or otherwise to restore funds (other than contributions to defray q^ualified campaign expenses received and expended by such candidates or such committees) used to defray such qualified campaign expenses. "SEC. 9005. CERTIFICATION BY COMPTROLLER GENERAL. " (a) INITIAL CERTIFICATIONS.—On the basis of the evidence, books, I'ccords, and information furnished by the eligible candidates of a political party and prior to examination and audit under section 9007, the Comptroller General shall certify from time to time to the Secretary for payment to such candidates under section 9006 the payments to which such candidates are entitled under section 9004. " (b) FINALITY or CERTIEICATIONS AND DETERMINATIONS.—Initial

certifications by the Comptroller General under subsection (a), and all determinations made by him under this chapter, shall be final and con-

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elusive, except to the extent that they are subject to examination and audit by the Comptroller General under section 9007 and judicial review under section 9011. "SEC. 9006. PAYMENTS TO ELIGIBLE CANDIDATES. " (a) ESTABLISHMENT OF CAMPAIGX FUND.—There is hereby established on the books of the Treasury of the United States a special fund to be known as the 'Presidential Election Campaign Fund'. The Secretary shall maintain in the fund (1) a separate account for the candidates of each major party, each minor party, and each new party for which a specific designation is made under section 6096 for payment into an account in the fund and (2) a general account for which no specific designation is made. The Secretary shall, as provided by appropriation Acts, transfer to each account in the fund an amount not in excess of the sum of the amounts designated (subsequent to the previous presidential election) to such account by individuals under section 6096 for payment into such account of the fund. " (b) TRANSFP:R TO THE GENP:RAL FUND.—If, after a presidential election and after all eligible candidates have been paid the amount which they are entitled to receive under this chapter, there are moneys remaining in any account in the fund, the Secretary shall transfer the moneys so remaining to the general fund of the Treasury. "(c) PAYMENTS FROM THE FUND.—Upon receipt of a certification from the Comptroller General under section 9005 for payment to the eligible candidates of a political party, the Secretary shall pay to such candidates out of the specific account in the fund for such candidates the amount certified by the Comptroller General. Payments to eligible candidates from the account designated for them shall be limited to the amounts in such account at the time of payment. Amounts paid to any such candidates shall be under the control of such candidates. "(d)

TRANSFERS FROM GENERAL ACCOUNT TO SEPARATE ACCOUNTS.—

" (1) If, on the 60th day prior to the presidential election, the moneys in any separate account in the fund are less than the aggregate entitlement under section 9004(a)(1) or (2) of the eligible candidates to which such account relates, 80 percent of the amount in the general account shall be transferred to the separate accounts (whether or not all the candidates to which such separate accounts relate are eligible candidates) in the ratio of the entitlement under section 9004(a)(1) or (2) of the candidates to which such accounts relate. No amount shall be transferred to any separate account under the preceding sentence which, when added to the moneys in that separate account prior to any payment out of that account during the calendar year, would be in excess of the aggregate entitlement under section 9004(a)(1) or (2) of the candidates to whom such account relates. "(2) If, at the close of the expenditure report period, the moneys in any separate account in the fund are not sufficient to satisfy any unpaid entitlement of the eligible candidates to which such account relates, the balance in the general account shall be transferred to the separate accounts in the following manner: " (A) For the separate account of the candidates of a major party, compute the percentage which the average number of popular A'otes recei^-ed by the candidates for President of the major parties is of the total number of popular votes cast for the office of President in the election. " (B) P^or the separate account of the candidates of a minor or new party, compute the percentage which the popular votes received for President by the candidate to which such account relates is of the total number of popular votes cast for the office of President in the election.

567

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[85 STAT.

" (C) I n the case of each separate account, multiply the applicable percentage obtained under subparagraph (A) or (B) for such account by the amount of the money in the general account prior to any distribution made under paragraph (1), and transfer to such separate account an amount equal to the excess of the product of such multiplication over the amount of any distribution made under such paragraph to such account. "SEC. 9007. EXAMINATIONS AND AUDITS; REPAYMENTS. " (a) EXAMINATIONS AND AUDITS.—After each presidential election, the Comptroller General shall conduct a thorough examination and audit of the qualified campaign expenses of the candidates of each political party for President and Vice President. " (b) REPAYMENTS.—

"(1) I f the Comptroller General determines that any portion of the payments made to the eligible candidates of a political party under section 9006 was in excess of the aggregate payments to which candidates were entitled under section 9004, he shall so notify such candidates, and such candidates shall pay to the Secretary an amount equal to such portion. "(2) I f the Comptroller General determines that the eligible candidates of a political party and their authorized committees incurred qualified campaign expenses in excess of the aggregate payments to which the eligible candidates of a major party were entitled under section 9004, he shall notify such candidates of the amount of such excess and such candidates shall pay to the Secretary an amount equal to such amount. "(3) i f the Comptroller General determines that the eligible candidates of a major party or any authorized committee of such candidates accepted contributions (other than contributions to make u p deficiencies in payments out of the fund on account of the application of section 9006(c)) to defray qualified campaign expenses (other than qualified campaign expenses with respect to which payment is required under paragraph (2)), he shall notify such candidates of the amount of the contributions so accepted, and such candidates shall p a y to the Secretary an amount equal to such amount. "(4) I f the Comptroller General determines that any amount of any payment made to the eligible candidates of a political party under section 9006 was used for any purpose other than— " (A) to defray the qualified campaign expenses with respect to which such payment was made, or " (B) to repay loans the proceeds of which were used, or otherwise to restore funds (other than contributions to defray qualified campaign expenses which were received and expended) which were used, to defray such qualified campaign expenses, he shall notify such candidates of the amount so used, and such candidates shall pay to the Secretary an amount equal to such amount. "(5) No payment shall be required from the eligible candidates of a political party under this subsection to the extent that such payment, when added to other payments required from such candidates under this subsection, exceeds the amount of payments received by such candidates under section 9006. Time limitation. «^^^ NOTIFICATION.—No notification shall be made by the Comptroller General under subsection (b) with respect to a presidential election more than 3 years after the day of such election.

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 85 STAT. ]

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569

" (d) DEPOSIT OF REPAYMENTS.—All payments received by the Sec-

retary under subsection (b) shall be deposited by him in the general fund of the Treasury. "SEC. 9008. INFORMATION ON PROPOSED EXPENSES. " (a) REPORTS BY CANDIDATES.—The candidates of a political party for President and Vice President in a presidential election shall, from time to time as the Comptroller General may require, furnish to the Comptroller General a detailed statement, in such form as the Comptroller General may prescribe, of— "(1) the qualified campaign expenses incurred by them and their authorized committees prior to the date of such statement (whether or not evidence of such expenses has been furnished for purposes of section 9005), and "(2) the qualified campaign expenses which they and their authorized committees propose to incur on or after the date of such statement. The Comptroller General shall require a statement under this subsection from such candidates of each political party at least once each week during the second, third, and fourth weeks preceding the day of the presidential election and at least twice during the week preceding such day. " (b) PUBLICATION.—The Comptroller General shall, as soon as Publication in Federal Regis(:ef, possible after he receives each statement under subsection (a), prepare and publish a summary of such statement, together with any other data or information which he deems advisable, in the Federal Register. Such summary shall not include any information which identifies any Post, p. 573. individual who made a designation under section 6096. "SEC. 9009. REPORTS TO CONGRESS; REGULATIONS. " (a) REPORTS.—The Comptroller General shall, as soon as practicable after each presidential election, submit a full report to the Senate and House of Representatives setting forth— "(1) the qualified campaign expenses (shown in such detail as the Comptroller General determines necessary) incurred by the candidates of each political party and their authorized committees; "(2) the amounts certified by him under section 9005 for payment to the eligible candidates of each political party; and "(3) the amount of payments, if any, required from such candidates under section 9007, and the reasons for each payment required. Each report submitted pursuant to this section shall be printed as a Senate document. " (b) REGULATIONS, ETC.—The Comptroller General is authorized to prescribe such rules and regulations, to conduct such examinations and audits (in addition to the examinations and audits required by section 9007(a)), to conduct such investigations, and to require the keeping and submission of such books, records, and information, as he deems necessary to carry out the functions and duties imposed on him by this chapter. "SEC. 9010. PARTICIPATION BY COMPTROLLER GENERAL IN JUDICIAL PROCEEDINGS. "(a)

APPEARANCE BY COUNSEL.—The

Comptroller

General

is

authorized to appear in and defend against any action filed under section 9011, either by attorneys employed in his office or by counsel whom he may appoint without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, and ^ ^ "^^ loi e< whose compensation he may fix without regard to the provisions of chapter 51 and subchapter III of chapter 53 of such title. 5331^^*^ ^^°^'

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Page:United States Statutes at Large Volume 85.djvu/600

 570

PUBLIC LAW 92-178-DEC. 10, 1971

[85 STAT.

" (b) RECOVERY OF CERTAIN PAYMENTS.—The Comptroller General is authorized through attorneys and counsel described in subsection (a) to appear in the district courts of the United States to seek recovery of any amounts determined to be payable to the Secretary as a result of examination and audit made pursuant to section 9007. " (c) DECLARATORY AXD INJUNCTIVE RELIEF.—The

Post, p. 57 3. 7/stat^*2o^i^^'

Comptroller

General is authorized through attorneys and counsel described in subsection (a) to petition the courts of the United States for declaratory or injunctive relief concerning any civil matter covered by the provisions of this subtitle or section 6096. Upon application of the Comptroller General, an action brought pursuant to this subsection shall be heard and determined by a court of three judges in accordance with ^^^ provisions of section 2284 of title 28, United States Code, and any appeal shall lie to the Supreme Court. I t shall be the duty of the judges designated to hear the case to assign the case for hearing at the earliest practicable date, to participate in the hearing and determination thereof, and to cause the case to be in every way expedited. " (d) APPEAL.—The Comptroller General is authorized on behalf of the United States to appeal from, and to petition the Supreme Court for certiorari to review, judgments or decrees entered with respect to actions in which he appears pursuant to the authority provided in this section. "SEC. 9011. JUDICIAL REVIEW. " (a) REVIEW OF CERTIFICATION, DETERMINATION, OR OTHER ACTION

BY THE COMPTROLLER GENERAL.—Any certification, determination, or

other action by the Comptroller General made or taken pursuant to the provisions of this chapter shall be subject to review by the United States Court of Appeals for the District of Columbia upon petition filed in such Court by any interested person. Any petition filed pursuant to this section shall be filed within thirty days after the certification, determination, or other action by the Comptroller General for which review is sought. " (b) SUITS To IMPLEMENT CHAPTER.—

"(1) The Comptroller General, the national committee of any political party, and individuals eligible to vote for President are authorized to institute such actions, including actions for declaratory judgment or injunctive relief, as may be appropriate to implement or contrue any provision of this chapter. "(2) The district courts of the United States shall have jurisdiction of proceedings instituted pursuant to this subsection and shall exercise the same without regard to whether a person asserting rights under provisions of this subsection shall have exhausted any administrative or other remedies that may be provided at law. Such proceedings shall be heard and determined by a court of three judges in accordance with the provisions of section 2284 of title 28, United States Code, and any appeal shall lie to the Supreme Court. I t shall be the duty of the judges designated to hear the case to assign the case for hearing at the earliest practicable date, to participate in the hearing and determination thereof, and to cause the case to be in every way expedited. "SEC. 9012. CRIMINAL PENALTIES. " (a) E X C E S S (1\MPAICTN E X P E N S E S. —

" (1) I t shall be unlawful for an eligible candidate of a political party for President and Vice President in a presidential election or any of his authorized committees knowingly and willfully to incur qualified campaign expenses in excess of the aggregate payments to which the eligible candidates of a major party are entitled under section 9004 with respect to such election.

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 85 STAT. ]

PUBLIC LAW 92-178-DEC. 10, 1971

"(2) Any person Avho violates paragraph (1) shall be fined not more than $5,000, or imprisoned not more than one year or both. I n the case of a violation by an authorized committee, any officer or member of such committee who knowingly and willfully consents to such violation shall be fined not more than $5,000, or imprisoned not more than one year, or both. " (b) CONTRIBUTIONS.—

"(1) I t shall be unlawful for an eligible candidate of a major party in a presidential election or any of his authorized committees knowingly and willfully to accept any contribution to defray qualified campaign expenses, except to the extent necessary to make up any deficiency in payments received out of the fund on account of the application of section 9006(c), or to defray expenses which would be qualified campaign expenses but for subparagraph (C) of section 9002 (11). "(2) I t shall be unlawful for an eligible candidate of a political party (other than a major party) in a presidential election or any of his authorized committees knowingly and willfully to accept and expend or retain contributions to defray qualified campaign expenses in an amount which exceeds the qualified campaign expenses incurred with respect to such election by such eligible candidate and his authorized committees. "(3) Any person who violates paragraph (1) or (2) shall be fined not more than $5,000, or imprisoned not more than one year, or both. I n the case of a violation by an authorized committee, any officer or member of such committee who knowingly and wdllfully consents to such violation shall be fined not more than $5,000, or imprisoned not more than one year, or both. "(c)

UNLAWFUL U S E OF PAYMENTS.—

"(1) I t shall be unlawful for any person who receives any payment under section 9006, or to whom any portion of any payment received under such section is transferred, knowingly and willfully to use, or authorize the use of, such payment or such portion for any purpose other than— " (A) to defray the qualified campaign expenses with respect to which such payment was made, or " (B) to repay loans the proceeds of which were used, or otherwise to restore funds (other than contributions to defray qualified campaign expenses which were received and expended) which were used, to defray such qualified campaign expenses. "(2) Any person who violates paragraph (1) shall be fined not more than $10,000, or imprisoned not more than five years, or both. "(d)

FALSE STATEMENTS, E T C. —

"(1) I t shall be unlawful for any person knowingly and willfully— " (A) to furnish any false, fictitious, or fraudulent evidence, books, or information to the Comptroller General under this subtitle, or to include in any evidence, books, or information so furnished any misrepresentation of a material fact, or to falsify or conceal any evidence, books, or information relevant to a certification by the Comptroller General or an examination and audit by the Comptroller General under this chapter; or " (B) to fail to furnish to the Comptroller General any records, books, or information requested by him for purposes of this chapter. "(2) Any person who violates paragraph (1) shall be fined not more than $10,000, or imprisoned not more than five years, or both.

571

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Page:United States Statutes at Large Volume 85.djvu/602

 572

PUBLIC LAW 92-178-DEC. 10, 1971 "(e)

[85 STAT.

KICKBACKS AND ILLEGAL PAYMENTS.—

"(1) I t shall be unlawful for any person knowingly and willfully to give or accept any kickback or any illegal payment in connection with any q^ualined campaign expense of eligible candidates or their authorized committees. "(2) Any person who violates paragraph (1) shall be fined not more than $10,000, or imprisoned not more than five years, or both. " (3) I n addition to the penalty provided by paragraph (2), any person who accepts any kickback or illegal payment in connection with any qualified campaign expense of eligible candidates or their authorized committees shall pay to the Secretary, for deposit in the general fund of the Treasury, an amount equal to 125 percent of the kickback or payment received. "(f)

68A Stat. 163. 26 USC 501.

Penalty.

U N A U T H O R I Z E D EXPENDITURES AND Ct>NTRiBUTiONS.—

"(1) Except as provided in paragraph (2), it shall be unlawful for any political committee which is not an authorized committee with respect to the eligible candidates of a political party for President and Vice President in a presidential election knowingly and willfully to incur expenditures to further the election of such candidates, which would constitute qualified campaign expenses if incurred by an authorized committee of such candidates, in an aggregate amount exceeding $1,000. "(2) This subsection shall not apply to (A) expenditures by a broadcaster regulated by the Federal Communications Commission, or by a periodical publication, in reporting the news or in taking editorial positions, or (B) expenditures by any organization described in section 501(c) which is exempt from tax under section 501(a) in communicating to its members the views of that organization. u^g^ ^j^y political committcc which violates paragraph (1) shall be fined not more than $5,000, and any officer or member of such committee who knowingly and willfully consents to such violation and any other individual who knowingly and willfully violates paragraph (1) shall be fined not more than $5,000, or imprisoned not more than one year, or both. " (g) UNAUTHORIZED DISCLOSURE OF INFORMATION.—

P^^^^ty*

"(1) I t shall be unlawful for any individual to disclose any information obtained under the provisions of this chapter except as may be required by law. " (2) Any person who violates paragraph (1) shall be fined not more than $5,000, or imprisoned not more than one year, or both. "SEC. 9013. EFFECTIVE DATE OF CHAPTER. "The provisions of this chapter shall take effect on January 1, 1973. "CHAPTER 96. PRESIDENTIAL ELECTION CAMPAIGN F U N D ADVISORY BOARD

Anie, p. 563.

•'SEC. 9021. ESTABLISHMENT OF ADVISORY BOARD. " (a) ESTABLISHMENT OF BOARD.—There is hereby established an advisory board to be known as the Presidential Election Campaign Fund Advisory Board (hereinafter in this section referred to as the 'Board'). I t shall be the duty and function of the Board to counsel and assist the Comptroller General of the United States in the performance of the duties and functions imposed on him under the Presiden^j^l Election Campaign Fund Act.

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PUBLIC LAW 92-178-DEC. 10, 1971

" (b) COMPOSITION OF BOARD.—The Board shall be composed of the following members: " (1) the majority leader and minority leader of the Senate and the Speaker and minority leader of the House of Representatives, who shall serve ex officio; "(2) two members representing each political party which is a major party (as defined in section 9002(6)), which members shall be appointed by the Comptroller General from recommendations submitted by such political party; and "(3) three members representing the general public, which members shall be selected by the members described in paragraphs (1) and (2). The terms of the first members of the Board described in paragraphs (2) and (3) shall expire on the sixtieth day after the date of the first presidential election following January 1, 1973, and the terms of subsequent members described in paragraphs (2) and (3) shall begin on the sixty-first day after the date of a presidential election and expire on the sixtieth day following the date of the subsequent presidential election. The Board shall elect a Chairman from its members. "(c) COMPENSATION.—Members of the Board (other than members described in subsection (b)(1) shall receive compensation at the rate of $75 a day for each day they are engaged in performing duties and functions as such members, including traveltime, and, Avhile away from their homes or regular places of business, shall be allowed travel expenses, including per diem in lieu of subsistence, as authorized by law for persons in the Government service employed intermittently. " (d) STATUS.—Service by an individual as a member of the Board shall not, for purposes of any other law of the United States be considered as service as an officer or employee of the United States." SEC. 802. MISCELLANEOUS AMENDMENTS. (a) DESIGNATION or INCOME TAX PAYMENTS TO PRESIDENTIAL ELECTION CAMPAIGN FUND.—Effective with respect to taxable years

ending on or after December 31, 1972, section 6096(a) (relating to designation of income tax payments to the presidential election campaign fund) is amended to read as follows: " (a) IN GENERAL.—Every individual (other than a nonresident alien) whose income tax liability for any taxable year is $1 or more may designate that $1 shall be paid over to the Presidential Election Campaign Fund for the account of the candidates of any specified political party for President and Vice President of the United States, or if no specific account is designated by such individual, for a general account for all candidates for election to the offices of President and Vice President of the United States, in accordance with the provisions of section 9006(a)(1). I n the case of a joint return of husband and wife having an income tax liability of $2 or more, each spouse may designate that $1 shall be paid to any such account in the fund." (b)

573

Ante, p. 563.

80 Stat. 1587,. 26 USC 6096.

^"^^' P* S^^*

REPEAL OF CERTAIN PROVISIONS.—

(1) Sections 303,304, and 305 of the Presidential Election Campaign Fund Act of 1966 (80 Stat. 1587) are repealed. (2) The enactment of subtitle H of the Internal Revenue Code of 1954 by section 801 of this Act is intended to comply with the provisions of section 5 (relating to the Presidential Election Campaign Fund Act of 1966) of the Act entitled "An Act to restore the investment credit and allowance of accelerated depreciation

3i use 971-973. '^"'^' ^* ^^^*

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Page:United States Statutes at Large Volume 85.djvu/604

 574 ^^31 USC 971 Ante, p. 57 3.

PUBLIC LAW 92-179-DEC. 10, 1971

[85 STAT.

in the case of certain real property", approved June 13, 1967 (Public Law 90-26, 81 Stat. 58). The provisions of section 6096 of the Internal Revenue Code of 1954, together with the amendments of such section made by subsection (a), shall be applicable only to taxable years ending on or after December 31, 1972. Approved December 10, 1971. Public Law 92-179

December 10, 1971

[H. R. 6283]

^^

ACT

To extend the period within which the President may transmit to the Congress plans for the reorganization of agencies of the executive branch of the Government, and for other purposes.

""PresIde'ntrai authority, exten-

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) section 901 (a) of title 5, United States Code, is amended to read as follows: " (a) The Cougrcss dcclarcs that it is the policv of the United

sion.

t:+ f

Eanization rexecutive

80 Stat, 394,

Reorganization plans*

i-

^

oiates— "(1) to promote better execution of the laws, more effective management of the executive branch and of its agencies and functions, and expeditious administration of the public business; " (2) to reduce expenditures and promote economy to the fullest extent consistent with the efficient operation of the Government; "(3) to increase the efficiency of the operations of the Government to the fullest extent practicable; "(4) to group, coordinate, and consolidate agencies and functions of the Government, as nearly as may be, according to major purposes; "(5) to reduce the number of agencies by consolidating those having similar functions under a single head, and to abolish such agencies or functions as may not be necessary for the efficient conduct of the Government; and " (6) to eliminate overlapping and duplication of effort." (b) Section 901 of such title is amended by adding at the end thereof the following new subsection: "(c) The President shall from time to time examine the organization of all agencies and shall determine what changes in such organization are necessary to carry out any policy set forth in subsection (a) of this section.*' gj,^_ g. (a) Section 903(a) of title 5, United States Code, is amended ^ '

^ •'

^

^

to read as follows: " (a) Whenever the President, after investigation, finds that changes in the organization of agencies are necessary to carry out any policy set forth in section 901(a) of this title, he shall prepare a reorganization plan specifying the reorganizations he finds are necessary. Any plan may provide for— " (1) the transfer of the whole or a part of an agency, or of the whole or a part of the functions thereof, to the jurisdiction and control of another agency; " (2) the abolition of all or a part of the functions of an agency; "(3) the consolidation or coordination of the whole or a part of an agency, or of the whole or a part of the functions thereof, with the whole or a part of another agency or the functions thereof; "(4) the consolidation or coordination of a part of an agency or the functions thereof with another part of the same agency or the functions thereof; "(5) the authorization of an officer to delegate any of his functions; or

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PUBLIC LAW 92-179-DEC. 10, 1971

575

"(6) the abolition of the whole or a part of an agency which agency or part does not have, or on the taking- effect of the reorganization plan will not have, any functions. The President shall transmit the plan (bearing an identification num- co^'Jr"s"!"^^'° ber) to the Congress together with a declaration that, with respect to each reorganization included in the plan, he has found that the reorganization is necessary to carry out any policy set forth in section 901 (a) of this title." ^;''/' P- " 4. 80 Stat. 394, (b) Section 903(b) of such title is amended by inserting after "and to each House while it is in session" a comma and the following: "and furthermore shall not transmit more than one such plan to Congress within any period of thirty consecutive days". SEC. 3. Section 904 of title 5, Laiited States Code, is amended to read as follows: "§ 904. Additional contents of reorganization plans "A reorganization plan transmitted by the President under section 903 of this title— " (1) may change, in such cases as the President considers necessary, the name of an agency affected by a reorganization and the title of its head, and shall designate the name of an agency resulting from a reorganization and the title of its head; "(2) may provide for the appointment and pay of the head and one or more officers of an agency (including an agency resulting from a consolidation or other type of reorganization) if the President finds, and in his message transmitting the plan declares, that by reason of a reorganization made by the plan the provisions are necessary; "(3) shall provide for the transfer or other disposition of the records, property, and personnel affected by a reorganization; "(4) shall provide for the transfer of such unexpended balances of appropriations, and of other funds, available for use in connection with a function or agency affected by a reorganization, as the President considers necessary by reason of the reorganization for use in connection with the functions affected by the reorganization, or for the use of the agency which shall have the functions after the reorganization plan is effective; and "(5) shall provide for terminating the affairs of an agency abolished. A reorganization plan transmitted by the President containing provisions authorized by paragraph (2) of this section may provide that the head of an agency be an individual or a commission or board with more than one member. In the case of an appointment of the head of such an agency, the term of office may not be fixed at more than four years, the pay may not be at a rate in excess of that found by the President to be applicable to comparable officers in the executive branch, and if the appointment is not to a position in the competitive service, it shall be by the President, by and with the advice and consent of the Senate, except that, in the case of an officer of the government of the District of Columbia, it may be by the Commissioner or other body or officer of that government designated in the plan. Any reorganization plan transmitted by the President containing provisions required by paragraph (4) of this section, shall provide for the transfer of unexpended balances only if such balances are used for the purposes for which the appropriation Avas originallv made."

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Page:United States Statutes at Large Volume 85.djvu/606

 576 80 Stat. 396.

83 Stat. 6.

PUBLIC LAW 92-180-DEC. 10, 1971

[85 STAT.

SEC. 4. (a) Section 905(a) of title 5 of the United States Code is amended by striking out "or" at the end of paragraph (5), by striking out the period at the end of paragraph (6) and inserting in lieu thereof a semicolon and the word "or", and by adding after paragraph (6) the following new paragraph: "(7) dealing with more than one logically consistent subject matter." (b) Section 905(b) of title 5, United States Code, is amended by striking out "April 1, 1971" and inserting in lieu thereof "April 1, 1973". SEC. 5. Section 911(a) of title 5, United States Code, is amended by striking out "10 calendar days" and inserting in lieu thereof "20 calendar days". Approved December 10, 1971.

Public Law 92-180 December 10, 1971 [H. R. 10383]

District of Columbia Profess i o n a l Corporation Act.

AN ACT To enable professional individuals and firms in the District of Columbia to obtain the benefits of corporate organization, and to make corresponding changes in the District of Columbia Income and Franchise Tax Act.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act shall be known and may be cited as the "District of Columbia Professional Corporation Act". DEFINITIONS

SEC. 2. As used in this Act, unless the context otherwise requires: (a) The term "professional corporation" means a corporation organized under this Act solely for the specific purposes provided under this Act, and which has as its shareholders only individuals who themselves are duly licensed to render the same professional service as the corporation. (b) The term "professional service" means any type of personal service to the public which may be lawfully rendered only pursuant to a license and which by law, custom, standards of professional conduct or practice in the District of Columbia, before the effective date of this Act, could not be rendered by a corporation, including without limitation the services performed by certified public accountants, attorneys, architects, practitioners of the healing arts, dentists, optometrists, podiatrists, and professional engineers. (c) The term "license" or "licensed" refers to a license, certification, certificate, or registration, or other legal authorization required by law as a condition precedent to the rendering of professional service within the District of Columbia. (d) The term "Council" means the District of Columbia Council or the agent or agents designated by it to perform any function vested in the Council by this Act. (e) The term "Commissioner" means the Commissioner of the District of Columbia or his designated agent.

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PUBLIC LAW 92-180-DEC. 10, 1971

577

EXEMPTION

SEC. 3. This Act shall not apply to any corporation now in existence or hereafter organized which may lawfully render professional services other than pursuant to this Act, nor shall anything herein contained alter or affect any existing or future right or privilege permitting or not prohibiting performance of professional services through the use of any form of business organization. Any corporation organized under the District of Columbia Business Corporation Act (D.C. Code, sec. 29-901 et seq.) may be brought within the provisions of this Act by complying with the provisions of this Act and filing amended or restated articles of incorporation meeting the requirements of section 6 of this Act.

^s Stat. 179,

CONSTKUCTION OF ACT

SEC. 4. The provisions of this Act shall not be construed as repealing, modifying, or restricting the applicable provisions of law relating to corporations, or regulating the several professions covered by this Act, except insofar as such laws conflict with the provisions of this Act. Except as otherwise provided by this Act, the provisions of the District of Columbia Business Corporation Act shall be applical)le to any pro- ^\c^^c'odI%)fessional corporation organized under this Act. 901! * PURrx)SE; rowEKs SEC. 5. (a) A professional corporation may be organized solely to render professional services thi-ough its shareholders, directors, officers, employees, or agents who are themselves duly licensed to I'ender the particular service, and to render service ancillary thereto. A professional corporation may charge for such services, may collect such charges, and may compensate those who render such service. A professional corporation may employ persons who are not licensed, but such persons shall not perform professional ser\ices; and no license shall be required of any person who is employed by a professional corporation to perform services for which no license is otherwise required. (b) Xo professional corporation may do any act which is prohibited to an individual licensed to render the professional service for which the corporation is organized. (c) Notwithstanding any provision of this Act, a professional corporation may— (i) invest its funds in real estate, mortgages, stocks, bonds, or other type of investment; (ii) own real estate or personal property; and (iii) enter into partnership and other agreements with individuals (who may be shareholders, directors, employees, or agents of the professional corporation), partnerships, or professional corporations rendering the same type of professional services within or without the District of Columbia, to the same extent that an individual licensed to render the same professional service may enter into such partnership or other agreements pursuant to law, rules, regulations, or standards of professional conduct of the profession practiced through the professional corporation.

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