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Page:United States Statutes at Large Volume 84 Part 2.djvu/718

 PUBLIC LAW 91-671-JAN. 11, 1971

2048

[84 STAT.

Public Law 91-671 January 11, 1971 [H. R. 18582]

Food Stamp Act of 1964, amendments, 78 Stat. 7 0 3. 7 USC 2011.

Definitions. 7 USC 2012. "Household."

Post,

p. 2051.

"State.'

'Elderly per-

AN ACT To amend the Food Stamp Act of 1964, as amended.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 2 of the Food Stamp Act of 1964, as amended, is amended to read as follows: "SEC. 2. I t is hereby declared to be the policy of Congress, in order to promote the general welfare, that the Nation's abundance of food should be utilized cooperatively by the States, the Federal Government, local governmental units, and other agencies to safeguard the health and well-being of the Nations population and raise levels of nutrition among low-income households. The Congress hereby finds that the limited food purchasing power of low-income households contributes to hunger and malnutrition among members of such households. The Congress further finds that increased utilization of food in establishing and maintaining adequate national levels of nutrition will promote the distribution in a beneficial manner of our agricultural abundances and will strengthen our agricultural economy, as well as result in more orderly marketing and distribution of food. To alleviate such hunger and malnutrition, a food stamp program is herein authorized which will permit low-income households to purchase a nutritionally adequate diet through normal channels of trade." SEC. 2. (a) Section 3(e) of the Food Stamp Act of 1964, as amended, is amended to read as follows: "(e) The term 'household' shall mean a group of related individuals (including legally adopted children and legally assigned foster children) or non-related individuals over age 60 who are not residents of an institution or boarding house, but are living as one economic unit sharing common cooking facilities and for whom food is customarily purchased in common. The term 'household' shall also mean (1) a single individual living alone who has cooking facilities and who purchases and prepares food for home consumption, or (2) an elderly person who meets the requirements of section 10(h) of this Act." (b) Add the following sentence at the end of subsection 3(f) of the Food Stamp Act of 1964, as amended: " I t shall also mean a political subdivision or a private nonprofit organization that meets the requirements of section 10(h) of this Act." (c) Subsection (j) of section 3 of the Food Stamp Act of 1964, as amended, is amended to read as follows: "(j) The term 'State' means the fifty States and the District of Columbia, Guam, Puerto Rico, and the Virgin Islands of the United States.". (d) Add the following new subsection at the end of section 3 of the Food Stamp Act of 1964, as amended: "(1) The term 'elderly person' shall mean a person sixty years of age or over who is not a resident of an institution or boarding house, and who is living alone, or with spouse, whether or not he has cooking facilities in his home."

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Page:United States Statutes at Large Volume 84 Part 2.djvu/719

 84 STAT. ]

PUBLIC LAW 91-671-JAN. 11, 1971

(e) Section 3 of the Food Stamp Act of 1964, as amended, is amended by adding the following new subsection: " (m) The term 'authorization to purchase card' means any document issued by the State agency to an eligible household which shows the face value of the coupon allotment the household is entitled to be issued on presentment of such document and the amount to be paid by such household for such allotment." SEC. 3. Subsections (a) and (b) of section 4 of the Food Stamp Act of 1964, as amended, are amended to read as follows: " (a) The Secretary is authorized to formulate and administer a food stamp program under which, at the request of the State agency, eligible households within the State shall be provided with an opportunity to obtain a nutritionally adequate diet through the issuance to them of a coupon allotment which shall have a greater monetary value than the charge to be paid for such allotment by eligible households. The coupons so received by such households shall be used only to purchase food from retail food stores which have been approved for participation in the food stamp program. Coupons issued and used as provided in this Act shall be redeemable at face value by the Secretary through the facilities of the Treasury of the United States. "(b) In areas where the food stamp program is in operation, there shall be no distribution of federally donated foods to households under the authority of any other law except that distribution thereunder may be made: (1) during temporary emergency situations when the Secretary determines that commercial channels of food distribution have been disrupted; (2) for such period of time as the Secretary determines necessary, to effect an orderly transition in an area in which the distribution of federally donated foods to households is being replaced by a food stamp program; or (3) on request of the State agency: Provided. That the Secretary shall not approve any plan established under this Act which permits any household to simultaneously participate in both the food stamp program and the distribution of federally donated foods under this clause (3). SEC. 4. Section 5 of the Food Stamp Act of 1964, as amended, is amended to read as follows: "SEC. 5. (a) Except for the temporary participation of households that are victims of a disaster as provided in subsection (b) of this section, participation in the food stamp program shall be limited to those households whose income and other financial resources are determined to be substantial limiting factors in permitting them to purchase a nutritionally adequate diet. " (b) The Secretary, in consultation with the Secretary of Health, Education, and Welfare, shall establish uniform national standards of eligibility for participation by households in the food stamp program and no plan of operation submitted by a State agency shall be approved unless the standards of eligibility meet those established by the Secretary. The standards established by the Secretary, at a minimum, shall prescribe the amounts of household income and other financial resources, including both liquid and nonliquid assets, to be used as criteria of eligibility. Any household which includes a member who has reached his eighteenth birthday and who is claimed as a dependent child for Federal income tax purposes by a taxpayer who is not a member of an eligible household, shall be ineligible to participate in any food stamp program established pursuant to this Act during the tax period such dependency is claimed and for a period of one year after expiration of such tax period. The Secretary may also establish temporary emergency standards of eligibility, without regard to income

2049 78 Stat. 7 03. 7 USC 2012. "Authorization to purchase card,"

Coupon allotment program, 7 USC 2013.

Redemption,

Emergency distribution.

Eligibility standards, 7 USC 2014.

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


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Page:United States Statutes at Large Volume 84 Part 2.djvu/720

 2050

Ineligibility.

Coupon allotcha"Ve?.^ ^^^"^' 7 8 Stat. 705. 7 USC 2016.

PUBLIC LAW 91-671-JAN. 11, 1971

[84

STAT.

and other financial resources, for households that are victims of a disaster which disrupted commercial channels of food distribution when he determines that such households are in need of temporary food assistance, and that commercial channels of food distribution have again become available to meet the temporary food needs of such households: Provided, That the Secretary shall in the case of Puerto Rico, Guam, and the Virgin Islands, establish special standards of eligibility and coupon allotment schedules which reflect the average per capita income and cost of obtaining a nutritionally adequate diet in Puerto Eico and the respective territories; except that in no event shall the standards of eligibility or coupon allotment schedules so used exceed those in the fifty States. a^^^ Notwithstanding any other provisions of law, the Secretary shall include in the uniform national standards of eligibility to be prescribed under subsection (b) of this section a provision that each State agency shall provide that a household shall not be eligible for assistance under this Act if it includes an able-bodied adult person between the ages of eighteen and sixty-five (except mothers or other members of the household who have the responsibility of care of dependent children or of incapacitated adults, bona fide students in any accredited school or training program, or persons employed and working at least 30 hours per week) who either (a) fails to register for employment at a State or Federal employment office or, when impractical, at such other appropriate State or Federal office designated by the Secretary, or (b) has refused to accept employment or public work at not less than (i) the applicable State minimum wage, (ii) the applicable Federal minimum wage, (iii) the applicable wage established by a valid regulation of the Federal Government authorized by existing law to establish such regulations, or (iv) $1.30 per hour if there is no applicable wage as described in (i), (ii), or (iii) above. Refusal to work at a plant or site subject to a strike or a lockout for the duration of such strike or lockout shall not be deemed to be a refusal to accept employment." SEC. 5. Subsectious (a) and (b) of section 7 of the Food Stamp Act of 1964, as amended, are amended to read as follows: " (a) The face value of the coupon allotment which State agencies shall be authorized to issue to any households certified as eligible to participate in the food stamp program shall be in such amount as the Secretary determines to be the cost of a nutritionally adequate diet, adjusted annually to reflect changes in the prices of food published by the Bureau of Labor Statistics in the Department of Labor. "(b) Notwithstanding any other provision of law, households shall be charged for the coupon allotment issued to them, and the amount of such charge shall represent a reasonable investment on the part of the household, but in no event more than 30 per centum of the household's income: Provided, That coupon allotments may be issued without charge to households with income of less than $30 per month for a family of four under standards of eligibility prescribed by the Secretary: Provided further, That the Secretary shall provide a reasonable opportunity for any eligible household to elect to be issued a coupon allotment having a face value which is less than the face value of the coupon allotment authorized to be issued to them under subsection (a) of this section. The charge to be paid by eligible households electing to exercise the option set forth in this subsection shall be an amount which bears the same ratio to the amount which would have been charged under subsection (b) of this section as the face value of the coupon allotment actually issued to them bears to the face value of the coupon allotment that would have been issued to them under subsection (a) of this section."

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Page:United States Statutes at Large Volume 84 Part 2.djvu/721

 84 STAT. ]

2051

PUBLIC LAW 91-671-JAN. 11, 1971

SEC, 6. (a) Subsection (c) of section 10 of the Food Stamp Act of 1964, as amended, is amended by inserting immediately preceding the first sentence the following: "Any household which is receiving public assistance and which makes application for the benefits of this Act shall be certified for eligibility solely by execution of an affidavit, in such form as the Secretary may prescribe, by the member of such household making application. Certification of a household as eligible in any political subdivision shall, in the event of removal of such household to another political subdivision in which the food stamp program is operating, remain valid for participation in the food stamp program for a period of sixty days from the date of such removal." (b) Subsection (e) of section 10 of the Food Stamp Act of 1964, as amended, is amended to read as follows: "(e) The State agency of each State desiring to participate in the food stamp program shall submit for approval a plan of operation specifying the manner in which such program will be conducted within the State, the political subdivisions within the State in which the State desires to conduct the program, and the effective dates of participation by each such political subdivision. In addition, such plan of operation shall provide, among such other provisions as may by regulations be required, the following: (1) the specific standards to be used in determining the eligibility of applicant households; (2) that the State agency shall undertake the certification of applicant households in accordance with the general procedures and personnel standards used by them in the certification of applicants for benefits under the federally aided public assistance programs; (3) safeguards which restrict the use or disclosure of information obtained from applicant households to persons directly connected with the administration or enforcement of the provisions of this Act or the regulations issued pursuant to this Act; (4) for the submission of such reports and other information as from time to time may be required; (5) that the State agency shall undertake effective action, including the use of services provided by other federally funded agencies and organizations, to inform low-income households concerning the availability and benefits of the food stamp program and insure the participation of eligible households; and (6) for the granting of a fair hearing and a prompt determination thereafter to any household aggrieved by the action of a State agency under any provision of its plan of operation as it affects the participation of such household in the food stamp program. The State agency shall, notwithstanding any other provision of law, institute procedures under which any household participating in the food stamp program shall be entitled, if it so elects, to have the charges, if any, for its coupon allotment deducted from any grant or payment such household may be entitled to receive under any federally aided public assistance program and have its coupon allotment distributed to it with such grant or payment. In apjDroving the participation of the subdivisions requested by each State in its plan of operation, the Secretary shall provide for an equitable and orderly expansion among the several States in accordance wnth their relative need and readiness to meet their requested effective dates of participation." (c) Add the following new subsection to section 10 of the Food Stamp Act of 1964, as amended: " (h) Subject to such terms and conditions as may be prescribed by the Secretary in the regulations issued pursuant to this Act, members of an eligible household who are sixty years of age or over or an elderly person and his spouse may use coupons issued to them to purchase 47-348 O - 72 - 46 (Pt. 2)

Eligibility, certification. 78 Stat. 706. 7 USC 2019.

State plan of operation, submission.

Reports.

Hearing.

Elderly p e r s o n s, meal purchase s.

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Page:United States Statutes at Large Volume 84 Part 2.djvu/722

 2052

Enforcement. 78 Stat. 708. 7 USC 2023.

Penalty.

Ante, p. 2051. Federal assistance to States. 7 USC 2024.

Appropriations. 82 Stat. 958. 7 USC 2025.

PUBLIC LAW 91-671-JAN. 11, 1971

[84

STAT.

meals prepared for and delivered to them by a political subdivision or by a private nonprofit organization which: (1) is not receiving federally donated foods from the United States Department of Agriculture for use in the preparation of such meals; (2) is operated in a manner consistent with the purposes of this Act; and (3) is recognized as a tax exempt organization by the Internal Revenue Service: Proinded, That household members or elderly persons to whom meals are delivered are housebound, feeble, physically handicapped, or otherwise disabled, to the extent that they are unable to adequately prepare all of their meals. Meals served pursuant to this subsection shall be deemed 'food' for the purposes of this Act." SEC. 7 (a). Subsections (a) and (b) of section 14 of the Food Stamp Act of 1964, as amended, are amended as follows: " (a) Notwithstanding any other provisions of this Act, the Secretary may provide for the purchase, issuance or presentment for redemption of coupons to such person or persons, and at such times and in such manner, as he deems necessary or appropriate to protect the interests of the United States or to insure enforcement of the provisions of this Act or the regulations issued pursuant to this Act. "(b) Whoever knowingly uses, transfers, acquires, alters, or possesses coupons or authorization to purchase cards in any manner not authorized by this Act or the regulations issued pursuant to this Act shall, if such coupons or authorization to purchase cards are of the value of $100 or more, be guilty of a felony and shall, upon conviction thereof, be fined not more than $10,000 or imprisoned for not more than five years or both, or, if such coupons or authorization to purchase cards are of a value of less than $100, shall be guilty of a misdemeanor and shall, upon conviction thereof, be fined not more than $5,000 or imprisoned for not more than one year, or both." SEC. 7 (b). Section 14 of the Food Stamp Act of 1964, as amended, is amended by adding the following new subsection: "(e) No person shall be charged with a violation of this or any other Act, or of any regulation issued under this or any other Act, or of any State plan of operation on the basis of any statements or information contained in an affidavit filed pursuant to section 10(c) of this Act, except for fraud." SEC. 8. Subsection (b) of section 15 of the Food Stamp Act of 1964 as amended, is amended to read as follows: " (b) The Secretary is authorized to pay to each State agency an amount equal to 62% per centum of the sum of (1) the direct salary, travel, and travel-related cost (including such fringe benefits as are normally paid) of personnel, including the immediate supervisors of such personnel, for such time as they are employed in taking the action required under the provisions of subsection 10(e)(5) of this Act and in making certification determinations for households other than those which consist solely of recipients of welfare assistance; (2) the direct salary, travel, and travel-related costs (including such fringe benefits as are normally paid) of personnel for such time as they are employed as hearing officials under section 10(e) of the Act." SEC. 9. Section 16(a) of the Food Stamp Act of 1964, as amended, is amended by striking "$170,000,000 for the six months ending December 31, 1970" and inserting in lieu thereof "$1,750,000,000 for the fiscal year ending June 30, 1971; and for the fiscal years ending June 30, 1972 and June 30, 1973 such sums as the Congress may appropriate". Approved January 11, 1971.

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Page:United States Statutes at Large Volume 84 Part 2.djvu/723

 84 STAT. ]

PUBLIC LAW 91-672-JAN. 12, 1971

2053

Public Law 91-672 AN ACT To amend the Foreign Military Sales Act, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America i7i Congress assembled, That subsection (b) of section 3 of the Foreign Military Sales Act (22 U.S.C. 2753(b)) is amended to read as follows: "(b) No sales, credits, or guaranties shall be made or extended under this Act to any country during a period of one year after such country seizes, or takes into custody, or fines an American fishing vessel for engaging in fishing more than twelve miles from the coast of that country. The President may waive the provisions of this subsection when he determines it to be important to the security of the United States or he receives reasonable assurances from the country involved that future violations will not occur, and promptly so reports to the Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate. The provisions of this subsection shall not be applicable in any case governed by an international agreement to which the United States is a party." SEC. 2. Section 31 of such Act (22 U.S.C. 2771) is amended— (1) by striking out of subsection (a) "not to exceed $296,000,000 for the fiscal year 1969" and inserting in lieu thereof "not to exceed $250,000,000 for each of the fiscal years 1970 and 1971"; and (2) by striking out of subsection (b) "during the fiscal year 1969 shall not exceed $296,000,000" and inserting in lieu thereof "shall not exceed $340,000,000 for each of the fiscal years 1970 and 1971". SEC. 3. Section 33 of such Act (22 U.S.C. 2773) is amended— (1) by striking out of subsection (a) "the fiscal year 1969" and inserting in lieu thereof "each fiscal year"; and (2) by striking out of subsection (b) "the fiscal year 1969" and inserting in lieu thereof "each fiscal year". SEC. 4. The last paragraph of section 1 of such Act (22 U.S.C. 2751) is amended by striking out "denying social progress" and inserting in lieu thereof "denying the growth of fundamental rights or social progress". SEC. 5. I t is the sense of Congress that (1) the President should continue to press forw^ard urgently with his efforts to negotiate with the Soviet Union and other powers a limitation on arms shipments to the Middle East, (2) the President should be supported in his position that arms will be made available and credits provided to Israel and other friendly states, to the extent that the President determines such assistance to be needed in order to meet threats to the security and independence of such states, and (3) if the authorization provided in the Foreign Military Sales Act, as amended, should prove to be insufficient to effectuate this stated policy, the President should promptly submit to the Congress requests for an appropriate supplementary authorization and appropriation. SEC. 6. I t is the sense of the Congress that— (1) the President should immediately institute a thorough and comprehensive review of the military aid programs of the United States, particularly with respect to the military assistance and sales operations of the Department of Defense, and

January 12, 1971 [H. R. 15628]

Foreign Military Sales Act, amendmentSa 82 Stat. 1322.

Waiver; report.

Exception.

Foreign military sales credits, ceiling.

Foreign military s a l e s, ceiling.

Policy statement.

Sales to the Middle E a s t.

Military aid p r o grams, review.

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Page:United States Statutes at Large Volume 84 Part 2.djvu/724

 PUBLIC LAW 91-672-JAN. 12, 1971

2054 Conventional arms trade. P r e s i dential action.

International Fighter aircraft. 82 Stat. 22 USC note. 75 Stat. 22 USC note.

1320, 2751 424. 2151

83 Stat, 204. E x c e s s defense articles.

22 USC 2301.

Funds, transfer.

75 Stat. 4 6 1. 22 USC 2403.

"Value."

[84 STAT.

(2i) the President should take such actions as may be appropriate— (A) to initiate multilateral discussions among the United States, the Union of Soviet Socialist Republics, Great Britain, France, West Germany, Italy and other countries on the control of the worldwide trade in armaments, (B) to commence a general debate in the United Nations with respect to the control of the conventional arms trade, and (C) to use the powder and prestige of his oiSce to signify the intention of the United States to work actively with all nations to check and control the international sales and distribution of conventional weapons of death and destruction. SEC. 7. Unless the sale, grant, loan, or transfer of any International Fighter aircraft (1) has been authorized by and made in accordance with the Foreign Military Sales Act or the Foreign Assistance Act of 1961, or (2) is a regular commercial transaction (not financed by the United States) between a party other than the United States and a foreign country, no such aircraft may be sold, granted, loaned, or otherwise transferred to any foreign country (or agency thereof) other than South Vietnam. For purposes of this section, "International Fighter aircraft*' means the fighter aircraft developed pursuant to the authority contained in the proviso of the second paragraph of section 101 of Public Law 91-121 (relating to military procurement for fiscal year 1970 and other matters). SEC. 8. (a) Subject to the provisions of subsection (b), the value of any excess defense article granted to a foreign country or international organization under part II of the Foreign Assistance Act of 1961 shall be considered to be an expenditure made from funds appropriated under that Act for military assistance. When an order is placed under the military assistance program with the military departments for a defense article whose stock status is excess at the time ordered, a sum equal to the value thereof shall (1) be reserved and transferred to a suspense account, (2) remain in the suspense account until the excess defense article is either delivered to a foreign country or international organization or the order therefor is cancelled, and (3) be transferred from the suspense account to (A) the general fund of the Treasury upon delivery of such article or (B) to the military assistance appropriation for the current fiscal year upon cancellation of the order. Such sum shall be transferred to the military assistance appropriation for the current fiscal year upon delivery of such article if at the time of delivery the stock status of the article is determined, in accordance with sections 644(g) and (m) of the Foreign Assistance Act of 1961, to be nonexcess. (b) The provisions of subsection (a) shall apply during any fiscal year only to the extent that the aggregate value of excess defense articles ordered during that year exceeds $100,000,000. (c) For purposes of this section, "value" means not less than SSy^ per centum of the amount the United States paid at the time the excess defense articles were acquired by the United States.

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]

PUBLIC LAW 91-672-JAN. 12, 1971

2055

(d) The President shall promptly and fully inform the Speaker of noTrto'^co^ngriss, the Honse of Representatives and the Committee on Foreign Relations and the Committee on Appropriations of the Senate of each decision to furnish on a grant basis to any country excess defense articles which are major weapons systems to the extent such major weapons system was not included in the presentation material previously submitted to the Congress. Additionally, the President shall also submit a quarterly c^^^es\!° report to the Congress listing by country the total value of all deliveries of excess defense articles, disclosing both the aggregate original acquisition cost and the aggregate value at the time of delivery. SEC. 9. I n considering a request for approval of any transfer of a app^ovair defense article to another country under section 505(a)(1) and (a)(4) of the Foreign Assistance Act of 1961, and section 3(a)(2) of the g^^^^^J^^'^/gf' Foreign Military Sales Act, the President shall not give his consent to 22 USC 2314. the transfer unless the United States itself would transfer the defense ^^ Stat. U22. article under consideration to that country. I n addition, the President Restrictions.' shall not give his consent under such sections to the transfer of any significant defense articles on the United States Munitions List unless (1) the foreign country requesting consent to transfer agrees to demilitarize such defense articles prior to transfer, or (2) the proposed recipient foreign country provides a commitment in writing to the United States (xovernment that it will not transfer such defense articles, if not demilitarized, to any other foreign country or person without first obtaining the consent of the President. SEC. 10. (a) Notwithstanding any provision of law enacted before P°^^^sn assist- - ,

V/

fe.Jjr

• j_

1 p

p

ance appropna-

the date 01 enactment 01 this section, no money appropriated tor ror-tions, limitation. eign assistance (including foreign military sales) shall be available for obligation or expenditure— (1) unless the appropriation thereof has been previously authorized by law; or (2) in excess of an amount previously prescribed by law. (b) To the extent that legislation enacted after the making of an appropriation for foreign assistance (including foreign military sales) authorizes the obligation or expenditure thereof, the limitation contained in subsection (a) shall have no effect. (c) The provisions of this section shall not be superseded except by a provision of law enacted after the date of enactment of this section which specifically repeals or modifies the provisions of this section. SEC. 11. For purposes of sections 8 and 9— Definitions. (1) "defense article"' and "excess defense articles" have the same meanings as given them in section 644(d) and (g), respectively, of the Foreign Assistance Act of 1961; and ^^ sta^ 46j^ (2) "foreign country" includes any department, agency, or independent establishment of the foreign country. SEC. 12. The joint resolution entitled "Joint resolution to promote ^uif of Tonkin the maintenance of international peace and security in Southeast Asia", ^^°^"**°"' '^^peai. approved August 10, 1964 (78 Stat. 384; Public Law 88-408), is so use app. terminated effective upon the day that the second session of the ^^^'^ ^ "°'^' Ninety-first Congress is last adjourned. SEC. 13. No funds authorized or appropriated pursuant to this or any chemicai muniother law may be used to transport chemical munitions from the Island "0"! fundTeYtlTc of Okinawa to the United States. Such funds as are necessary for the ti°n.' detoxification or destruction of the above described chemical munitions are hereby authorized and shall be used for the detoxification or destruction of chemical munitions only outside the United States. For purposes of this section, the term "United States" means the several "^^it^^ states.' States and the District of Columbia. Approved January 12, 1971.

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Page:United States Statutes at Large Volume 84 Part 2.djvu/726

 2056

PUBLIC LAW 91-673-JAN. 12, 1971

[84 STAT.

Public Law 91-673 January 12, 1971 [H. R. 656 2]

AN ACT To aineiKl certain provisions of the Internal Revenue Code of 1954 relating to beer, and for other purposes.

Taxes. Beer, 72 Stat. 1335. 26 USC 5056.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,^ That (a) section 5056 of the Internal Keveniie Code of 1954 (relating to refund and credit of tax, or relief from liability) is amended to read as follows: "SEC. 5056. REFUND AND CREDIT OF TAX, OR RELIEF FROM LIABILITY. "'(a) BEER RETURNED OR VOLUNTARILY DESTROYED.—Any tax paid

by any brewei- on beer produced in the United States may be refunded or credited to the brewer, without interest, or if the tax has not been paid, the brewer may be relieved of liability therefor, under such regulations as the Secretary or his delegate may prescribe, if such beer is returned to any brewery of the brewer or is destroyed under the supervision required by such regulations. In determining the amount of tax due on beer removed on any day, the quantity of beer returned to the same brewery from which removed shall be allowed, under such regulations as the Secretary or his delegate may prescribe, as an offset against or deduction from the total quantity of beer removed from that brewery on the day of such return. " (b) BEER I » S T BY FIRE, THE F T, CASUALTY, OR ACT OF GOD.—Subject

Exemptions.

to regulations prescribed by the Secretary or his delegate, the tax paid by any brewer on beer produced in the United States may be refunded or credited to the brewer, without interest, or if the tax has not been paid, the brewer may be relieved of liability therefor, if such beer is lost, whether by theft or otherwise, or is destroyed or otherwise rendered unmerchantable by fire, casualty, or aot of Grod before the transfer of title thereto to any other person. In any case in which beer is lost or destroyed, whether by theft or otherwise, the Secretary or his delegate may require the brewer to file a claim for relief from the tax and submit proof as to the cause of such loss. I n every case where it appears that the loss was by theft, the first sentence shall not apply unless the brewer establishes to the satisfaction of the Secretary or his delegate that such theft occurred before removal from the brewery and occurred without connivance, collusion, fraud, or negligence on the part of the brewer, consignor, consignee, bailee, or carrier, or the employees or agents of any of them. "(c) LIMITATIONS.—No claim under this section shall be allowed (1) unless filed within 6 months after the date of the return, loss, destruction, or rendering unmerchantable or (2) if the claimant was indemnified by insurance or otherwise in respect of the tax." (b) Section 5052(c)(2) of such Code (relating to definition of removed for consumption or sale) is amended to read as follows: "(2) REMOVALS.—Any removal of beer from the brewery." SEC. 2. Section 5053 of the Internal Revenue Code of 1954 (relating to exemptions from imposition of tax on beer) is amended by redesignating subsection (d) as (e),, and by inserting after subsection (c) the following new subsection: " (d) REMOVALS FOR RESEARCH, DEVELOPMENT, OR TESTING.—Under

Revenue bonds. 72 Stat. 1388.

such conditions and regulations as the Secretary or his delegate may prescribe, beer may be removed from the brewery without payment of tax for use in research, development, or testing (other than consumer testing or other market ianalysis) of processes, systems, materials, or equipment relating to beer or brewery operations." SEC. 3. (a) Section 5401(b) of the Internal Revenue Code of 1954 (relating to bonds) is amended by striking out the last sentence and

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Page:United States Statutes at Large Volume 84 Part 2.djvu/727

 84 STAT. ]

PUBLIC LAW 91-673-JAN. 12, 1971

inserting in lieu thereof the following: "Once in every 4 years, or whenever required so to do by the Secretary or his delegate, the brewer shall execute a new bond or a continuation certificate, in the penal sum prescribed in pursuance of this section, and conditioned as above provided, which bond or continuation certificate shall be in lieu of any former bond or bonds, or former continuation certificate or certificates, of such brewer in respect to all liabilities accruing after its approval. If the contract of surety between the brewer and the surety on an expiring bond or continuation certificate is continued in force between the parties for a succeeding period of not less than 4 years, the brewer may submit, in lieu of a new bond, a certificate executed, under penalties of perjury, by the brewer and the surety attesting to continuation of the bond, which certificate shall constitute a bond subject to all provisions of law applicable to bonds given pursuant to this section." (b) Section 5402(a) of such Code (relating to definition of brewery) is amended to read as follows: " (a) BREWERY.—The brewery shall consist of the land and buildings described in the brewer's notice. The continuity of the brewery must be unbroken except where separated by public passageways, streets, highways, waterways, or carrier rights-of-way, or partitions; and if parts of the brewery are so separated they must abut on the dividing medium and be adjacent to each other. Notwithstanding the preceding sentence, facilities under the control of the brewer for case packing, loading, or storing which are located within reasonable proximity to the brewery packaging facilities may be approved by the Secretary or his delegate as a part of the brewery if the revenue will not be jeopardized thereby." (c) Section 5411 of such Code (relating to use of brewery) is amended to read as follows: "SEC. 5411. USE OF BREWERY. "The brewery shall be used under regulations prescribed by the Secretary or his delegate only for the purpose of producing, packaging, and storing beer, cereal beverages containing less than one-half of 1 percent of alcohol by volume, vitamins, ice, malt, malt sirup, and other byproducts and of soft drinks; for the purpose of processing spent grain, carbon dioxide, and yeast; and for such other purposes as the Secretary or his delegate by regulation may find will not jeopardize the revenue." (d) Section 5412 of such Code (relating to removal of beer in containers, etc.) is amended by striking out "barrels, kegs, bottles," and inserting "packages,". "(e) Section 5416 of such Code (relating to definitions of bottle and bottling) is amended to read as follows: "SEC. 5416. DEFINITIONS OF PACKAGE AND PACKAGING. "For purposes of this subchapter, the term 'package' means a bottle, can, keg, barrel, or other original consumer container, and the term 'packaging' means the filling of any package." SEC. 4. (a) Part II of subchapter G of chapter 51 of the Internal Revenue Code of 1954 (relating to operations) is amended by adding at the end thereof the following new section: "SEC. 5417. PILOT BREWING PLANTS. "Under such regulations as the Secretary or his delegate may prescribe, and on the filing of such bonds and applications as he may require, pilot brewing plants may, at the discretion of the Secretary or his delegate, be established and operated off the brewery premises for research, analytical, experimental, or development purposes with regard to beer or brewery operations. Nothing in this section shall be

2057

^2 Stat. i389. ^^^ ^^ "

26 USC 5411.

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Page:United States Statutes at Large Volume 84 Part 2.djvu/728

 2058

PUBLIC LAW 91-674-JAN. 12, 1971

[84 STAT.

construed as authority to waive the filing of any bond or the payment of any tax provided for in this chapter." (b) The table of sections for part II of subchapter G of chapter 51 of such Code is amended by striking out the last item and inserting in lieu thereof the following: "Sec. 5416. Definitions of package and packaging. "Sec. 5417. Pilot brewing plants." Effective date.

SEC. 5. The amendments made by the first four sections of this Act shall take effect on the first day of the first calendar month which begins more than 90 days after the date of the enactment of this Act. Approved January 12, 1971.

Public Law 91-674 January 12, 1971 [H. R. 7626]

Certain sugars, sirups, molasses. Tariff classification. 77A Stat. 56.

Effective date.

Ante, p. 284.

46 Stat. 745. 19 USC 1562.

AN ACT To amend the Tariff Schedules of the United States with respect to the tariff classification of certain sugars, sirups, and molasses, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled., That the article description for item 155.40 of the Tariff Schedules of the United States (19 U.S.C. 1202) is amended to read as follows: "Sugars, sirups, molasses, and mixtures thereof; all the foregoing derived from sug^ar cane or sugar beets and containing soluble nonsugar solids (excluding any foreign substance that may have been added or developed in the product) equal to over 6% by weight of the total soluble solids, if imported for use other than (a) the commercial extraction of sugar, or (b) human consumption". SEC. 2. The amendment made by the first section of this Act shall apply with respect to articles entered, or withdrawn from warehouse, for consumption on or after the date of enactment of this Act. Upon request therefor filed with the customs officer concerned on or before the one hundred and twentieth day after the date of enactment of this Act, entries and withdrawals of articles described in item 155.40 of the Tariff Schedules of the United States (as amended by the first section of this Act) which were made after A u ^ s t 30, 1963, and before the date of enactment of this Act shall, notwithstanding the provisions of section 514 of the Tariff Act of 1930 or any other provision of law, be liquidated or reliquidated as though such entries or withdrawals had been made on the date of the enactment of this Act. SEC. 3. Upon request therefor, filed with the Customs Officer concerned on or before the 30th day after the date of enactment of this Act, warehouse entries made in the period February 1967 to May 1967, inclusive, shall, notwithstanding the provisions of section 514 of the Tariff Act of 1930 or any other provision of law, be liquidated or reliquidated with the assessment of duty at the rate of 0.012 cent per pound of total sugars with respect to sugar products withdrawn from warehouse for consumption after manipulation in accordance with section 562 of the Tariff Act, upon the furnishing of appropriate evidence that such sugar products were actually used for purposes other than (a) human consumption or (b) the commercial extraction of sugar. Approved January 12, 1971.

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Page:United States Statutes at Large Volume 84 Part 2.djvu/729

 84

STAT.

]

PUBLIC LAW 91-675-JAN. 12, 1971

2059

Public Law 91-675 AN ACT

January 12, 1971

To amend section 905 of the Tax Reform Act of 1969.

[H. R. 17984]

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That subsection (c) of section 905 of the Tax Reform Act of 1969 (Public Law 91-172) is hereby amended as follows: (a) in paragraph (1) strike out "(2) and (3) " and insert in lieu thereof " (2), (3), (4), and (5) "; and (b) at the end of such subsection add the following new paragraphs: "(4) The amendments made by subsections (a) and (b) shall not apply to a distribution by a corporation of property (held on December 1, 1969, by the distributing corporation or a corporation which was a wholly owned subsidiary of the distributing corporation on such date) in redemption of stock outstanding on November 30, 1969, which is redeemed and canceled before July 31, 1971, if— " (A) such redemption is pursuant to a resolution adopted before November 1, 1969, by the Board of Directors authorizing the redemption of a specific amount of stock constituting more than 10 percent of the outstanding stock of the corporation at the time of the adoption of such resolution; and " (B) more than 40 percent of the stock authorized to be redeemed pursuant to such resolution was redeemed before December 30, 1969, and more than one-half of the stock so redeemed was redeemed with property other than money. "(5) The amendments made by subsections (a) and (b) shall not apply to a distribution of stock by a corporation organized prior to December 1, 1969, for the principal purpose of providing an equity participation plan for employees of the corporation whose stock is being distributed (hereinafter referred to as the 'employer corporation') if— " (A) the stock being distributed was owned by the distributing corporation on November 30, 1969, " (B) the stock being redeemed was acquired before January 1, 1973, pursuant to such equity participation plan by the shareholder presenting such stock for redemption (or by a predecessor of such shareholder), " (C) the employment of the shareholder presenting the stock for redemption (or the predecessor of such shareholder) by the employer corporation commenced before January 1, 1971, " (D) at least 90 percent in value of the assets of the distributing corporation on November 30, 1969, consisted of common stock of the employer corporation, and ^' (E) at least 50 percent of the outstanding voting stock of the employer corporation is owned by the distributing corporation at any time within the nine-year period ending one year before the date of such distribution." Approved January 12, 1971.

Tax Reform Act of 1969, amendment.

83 Stat. 714. ^^ ^^^ ^""''*^

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Page:Folk-lore - A Quarterly Review. Volume 15, 1904.djvu/79

 Rh decided traces of that presentment of the wife found in. We must thus assume that and  and go back to a common original, itself akin to, but neither derived from, nor the source of, that version. This further source postulated for all three tales may be called X, and its first offshoot is, modified by insertion into the Arthur cycle. There was probably no framework-setting in X, as otherwise the absence of this feature in would be inexplicable. But at some date X was set in a framework and in this stage gave rise to the Welsh original of. It continued to live on in the Gaelic-speaking area subject to both elaboration and change, until it assumed that form in which it is still found among the peasantry of Ireland and Scotland. But X itself, as we have seen, cannot have come from Marie's lay; both must go back ultimately to a common source.

In endeavouring to reconstruct X, made up as we have seen of the Werwolf's Tale (found separate in ) plus elements common to the other three versions, is of most value, and after  the current folktales which, though recorded so much later than, may fairly be assumed to have retained archaic "folk" elements in a more perfect form. We saw above that both are distinguished from by the more lenient view taken of the wife's conduct and by the fact that the latter returns to her father's land whither she is followed by the transformed husband. Only, however, has preserved the significant opening incident which, as Professor Kittredge conjectures, proves the wife to be of supernatural kin. He then reconstructs the basis of X as follows: Allured, it may be, by the hero's prowess, the supernatural maiden comes to woo him, as is so frequently the case in Irish mythic romance. But she has left behind her a lover of her kin, who follows her, and after a while persuades her to return to their own land of Faery. Thither the mortal husband follows and—should recover her. Thus, indeed, the story runs in one of the most famous of old Irish mythic romances, the Wooing of Etain. Etain is an immortal, wife of Mider; reborn in mortal form she is met at a spring side by Eochaid, King of Ireland, who is seeking a wife, but will not be content save with one, "whom no man of the men of Erin had known before him." They wed; Mider follows her to mortal land, wins her from Eochaid in a


text:
Page:United States Statutes at Large Volume 84 Part 2.djvu/730

 2060

PUBLIC LAW 91-676-JAN. 12, 1971

fe4

STAT.

Public Law 91-676 T 10 1071 January 12, 1971

[H.R. 17988]

Taxes. Leased air-

craftrinvestment credit recajpture. 76 Stat. 966; 83 Stat. 666. 26 USC 47.

AN

To amend section 47 of the Internal Revenue Code of 1954 to allow aircraft to be leased for temporary use outside the United States without a recapture of the investment credit.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 47(a) of the Internal Revenue Code of 1954 (relating to certain dispositions ^f geotion 38 property) is amended by adding at the end thereof the o ^^ • f f J/ J fe following new paragraph: "(6) AIRCRAFT USED OUTSIDE THE UNITED STATES AFTER APRIL 18, 1969. " (A) GENERAL RULE.—Any aircraft which was new section 38 property for the taxable year in which it was placed in service and which is used outside the United States under a qualifying lease or leases shall be treated as not ceasing to be section 38 property by reason of such use until such aircraft has been so used for a period or periods exceeding 4 years in total. For purposes of the preceding sentence, the registration of such aircraft under the laws of a foreign country shall be treated as use outside the United States. "(B)

72 Stat. 737.

Applicability.

ACT

COMPUTATION

OF QUALIFIED INVESTMENT.—If

an

aircraft described in subparagraph (A) is disposed of or otherwise ceases to be section 38 property, the increase under paragraph (1) and the adjustment under paragraph (3) shall not be greater than the increase or adjustment which would result if the qualified investment of such aircraft were based upon a useful life equal to the lesser of (i) the actual useful life of such aircraft with respect to the taxpayer, or, (ii) twice the number of full calendar months during which such aircraft was registered by the Administrator of the Federal Aviation Agency and was used in the United States, operated to and from the United States, or operated under contract with the United States. For purposes of the preceding sentence, an aircraft shall be treated as used in the United States for any calendar month beginning after such aircraft was placed in service, if such month is included in a taxable year ending before January 1, 1971, for which such aircraft was section 38 property (determined without regard to this paragraph). " (C) QuALiFiNG LEASE DEFINED.—For purposes of Subparagraph (A), the term 'qualifying lease' means a lease from an air carrier (as defined m section 101 of the Federal Aviation Act of 1958, as amended (49 U.S.C. 1301)) which complies with the provisions of the Federal Aviation Act of 1958, as amended, and the rules and regulations promulgated by the Civil Aeronautics Board thereunder, but only if such lease was executed after April 18, 1969." gj,(^^ 2. The amendment made by the first section of this Act shall apply to taxable years ending after April 18, 1969. Approved January 12, 1971.

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Page:United States Statutes at Large Volume 84 Part 2.djvu/731

 84 STAT. ]

PUBLIC LAW 91-677-JAN. 12, 1971

2061

Public Law 91-677 AN ACT

,

,„

,0,,

January 12, 1971

To amend provisions of the Internal Revenue Code of 1954 relating to the treatment of certain losses sustained by reason of the confiscation of property by the government of Cuba.

[H. R. 18693]

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) section Taxes. 165(i) of the Internal Revenue Code of 1954 (relating to certain confi'rcaaon°by^^' property confiscated by the government of Cuba) is amended— Cuba. (1) by striking out "or (2) " i n paragraph (1)(B); H 1^6 lH. (2) by striking out "on December 31, 1958" in the last sentence of paragraph (1) and inserting in lieu thereof the following: "on one or more days in the period beginning on December 31, 1958, and ending on May 16, 1959"; (3) by amending paragraph (2)(B) to read as follows: " (B) For purposes of subsection (a), the fair market value of property held by this taxpayer on one or more days during the period beginning on December 31, 1958, and ending on Ma^i^ 16, 1959, to which paragraph (1) applies, on the day on which the loss of such property was sustained, shall be its fair market value on the first day in such period on which the property was held by the taxpayer."; and (4) by striking out paragraph (3) thereof. (b)(1) The amendments made by subsection (a) of this section Effective date. shall apply in respect of losses sustained in taxable years ending after December 31, 1958. (2) Notwithstanding: any law or rule of law, refund or credit of overpayment, refund or credit. any overpayment attributable to the amendments made by subsection (a) may be made or allowed if claim therefor is filed after the date of the enactment of this Act and before July 1, 1971. No interest shall be allowed with respect to any such refund or credit for any period before January 1, 1972. SEC. 2. (a) Section 172(b)(1)(D) of the Internal Revenue Code 78 Stat. 47. of 1954 (relating to carryover of foreign expropriation losses) is amended by inserting before the semicolon at the end thereof the following: "(or, with respect to that portion of the net operating loss for such year attributable to a Cuban expropriation loss, to each of the 15 taxable years following the taxable year of such loss)". (b) Section 172(b)(2) of such Code (relating to amount of carry- ^e Stat. 889. backs and carryovers) is amended by inserting before the period at the end thereof the following: ", and, if a portion of a foreign expropriation loss for the loss year is attributable to a Cuban expropriation loss, such portion shall be considered to be a separate foreign expropriation loss for such year to be applied after the other portion of such foreign expropriation loss". (c) Section 172(k) of such Code (relating to definition of foreign ^^ ^t^*- '*8expropriation loss) is amended by adding at the end thereof the following new paragraph: "(3) The term 'Cuban expropriation loss' means, for any tax- "Cuban exproable year, a foreign expropriation loss sustained by reason of the P"^*'°" expropriation, intervention, seizure, or similar taking of propert;^, before January 1, 1964, by the government of Cuba, any political subdivision thereof, or any agency or instrumentality of the foregoing. The portion of a foreign expropriation loss for any taxable year attributable to a Cuban expropriation loss is the amount of the Cuban expropriation loss." ^

^

.yj

^

_

T

i

l

l

f«»fn*^/-I rvf

i^fiAii-

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Page:United States Statutes at Large Volume 84 Part 2.djvu/732

 2062 Effective date.

PUBLIC LAW 91-678-JAN. 12, 1971

[84 STAT.

(d) The amendments made by this se-ction shall apply in respect of foreign expropriation losses sustained in taxable years ending after December 31, 1958. Approved January 12, 1971„

Public Law 91-678 January 12. 1971 [H. R. 17658]

Taxe s Cemen t ml x e r s. floor sto c k refunds. Ante, p p. 1743, 1843.

Conditions.

Definitions.

AN ACT To provide floor stock refunds in the case of cement mixers.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) where before January 1, 1970, and after June 30, 1968, any cement mixer subject to the tax imposed by section 4061 of the Internal Revenue Code of 1954 during such period, had been sold by the manufacturer, producer, or importer, and on January 1, 1970, was held by a dealer and had not been used and was intended for sale, there shall be credited or refunded (without interest) to the manufacturer, producer, or importer an amount equal to the tax paid by the manufacturer, producer, or importer on his sale of the cement mixer, if— (1) claim for such credit or refund is filed with the Secretary of the Treasury or his delegate on or before the last day of the ninth calendar month beginning after the date of enactment of this Act, based upon a request submitted to the manufacturer, producer, or importer on or before the last day of the sixth calendar month beginning after the date of enactment of this Act, by the dealer who held the cement mixer in respect of which the credit or refund is claimed; and (2) on or before the last day of the ninth calendar month beginning after the date of enactment of this Act, reimbursement has been made to the dealer by the manufacturer, producer, or importer for the tax on the cement mixer or written consent has been obtained from the dealer to allowance of the credit or refund. (b) For the purposes of this section— (1) The term "cement mixer" means— (A) any article designed (i) to be placed or mounted on an automobile truck chassis or truck trailer or semitrailer chassis and (ii) to be used to process or prepare concrete, and (B) parts or accessories designed primarily for use on or in connection with an article described in subparagraph (A). (2) The term "dealer" includes a wholesaler, jobber, distributor, or retailer. (3) A cement mixer shall be considered as "held by a dealer" if title thereto has passed to the dealer (whether or not delivery to him has been made), and if for purposes of consumption title to the cement mixer or possession thereof had not at any time prior to January 1, 1970, been transferred to any person other than a dealer. For purposes of subsection (a) and notwithstanding the preceding sentence, a cement mixer shall be considered as "held by a dealer" and not to have been used, although possession of such cement mixer has been transferred to another person, if such cement mixer is returned to the dealer in a transaction under which any amount paid or deposited by the transferee for such cement mixer is refunded to him (other than amounts retained by the dealer to cover damage to the cement mixer). Moreover, such a cement mixer shall be considered as held by a dealer on January 1, 1970, even though it was in the possession of the transferee on such day, if it was returned to the dealer (in a transaction described in the preceding sentence) before January 31, 1970.

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Page:United States Statutes at Large Volume 84 Part 2.djvu/733

 84 STAT. ]

PUBLIC LAW 91-679-JAN. 12, 1971

2063

(c) No manufacturer, producer, or importer shall be entitled to J/Jg^^'^t^^ '^^' credit or refund under subsection (a) unless he has in his possession such evidence of the inventories with respect to which the credit or refund is claimed as may be required by regulations prescribed by the Secretary of the Treasury or his delegate under this subsection. (d) All provisions of law, including penalties, applicable in respect Applicability. of the taxes imposed by section 4061 of such Code shall, insofar as jg^"^^' ^^- ^^'*''' applicable and not inconsistent with subsections (a), (b), and (c) of this section, apply in respect of the credits and refunds provided for in subsection (a) to the same extent as if the credits or refunds constituted overpayments of the taxes. Approved January 12, 1971.

Public Law 91-679 AN ACT January 12, 19 71 To amend the Internal Revenue Code of 1954 to provide that in certain cases a [H. R. 19774] spouse will be relieved of liability arising from a joint income tax return.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section-6013 of To^^^tVetums the Internal Revenue Code of 1954 (relating to joint returns of income uabiuty. tax by husband and wife) is amended by adding at the end thereof the ga^s^af *675^^^' following new subsection: 26 USC eo'i 3. " (e) SPOUSE RELIEVED or LIABILITY I N CERTAIN CASES.—

"(1) IN GENERAL.—Under regulations prescribed by the Secretary or his delegate, if— " (A) a joint return has been made under this section for a taxable year and on such return there was omitted from gross income an amount properly includable therein which is attributable to one spouse and which is in excess of 25 percent of the amount of gross income stated in the return, " (B) the other spouse establishes that in signing the return he or she did not know of, and had no reason to know of, such omission, and " (C) taking into account whether or not the other spouse significantly benefited directly or indirectly from the items omitted from gross income and taking into account all other facts and circumstances, it is inequitable to hold the other spouse liable for the deficiency in tax for such taxable year attributable to such omission, then the other spouse shall be relieved of liability for tax (including interest, penalties, and other amounts) for such taxable year to the extent that such liability is attributable to such omission from gross income. " (2) SPECIAL RULES.—For purposes of paragraph (1) —

" (A) the determination of the spouse to whom items of gross income (other than gross income from property) are attributable shall be made without regard to community property laws, and " (B) the amount omitted from gross income shall be determined in the manner provided by section 6501(e)(1)(A). " ^^^ ^*^*- ^°^SEC. 2. Section 6653(b) of the Internal Revenue Code of 1954 Failure to pay. (relating to failure to pay tax) is amended by adding at the end thereof the following new sentence: " I n the case of a joint return under section 6013, this subsection shall not apply with respect to the tax of a spouse unless some part of the underpayment is due to the fraud of such spouse."

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Page:United States Statutes at Large Volume 84 Part 2.djvu/734

 2064

68A Stat. 3.

26 USC 1

et

seq, 53 Stat. 4.

PUBLIC LAW 91^80-JAN. 12, 1971

[84

STAT.

SEC. 3. The amendments made by the first two sections of this Act shall apply to all taxable years to which the Internal Revenue Code of 1954 applies. Corresponding provisions shall be deemed to be included in the Internal Revenue Code of 1939 and shall apply to all taxable years to which such Code applies. Approved January 12, 1971. Public Law 91-680

January 12, 1971 [H. R. 19242]

Taxes. Almond groves, c a p i t a l expenditures. 83 Stat. 57 4. 26 USC 278.

AN ACT To auieiid.section 278 of the Internal Revenue Code of 1954: to extend its application from citrus groves to almond groves.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) the text of section 278 of the Internal Revenue Code of 1954 (relating to capital expenditures incurred in planting and developing citrus groves) is amended by striking out "citrus grove" each place it appears and inserting in lieu thereof "citrus or almond grove". (b) The heading for section 278 of such Code is amended to read as follows: "SEC. 278. CAPITAL EXPENDITURES INCURRED IN PLANTING A N D DEVELOPING CITRUS AND ALMOND GROVES." (c) The table of sections for part IX of subchapter B of chapter 1 of such Code is amended by striking out the item relating to section 278 and inserting in lieu thereof the following: "Sec. 278. Capital expenditures incurred in planting and developing citrus and almond groves."

Effective date.

Airline t i c k e t s, total c o s t requirement. i4n(e, p. 239.

(d) Subsection (b)(2) of such section 278 is amended to read as follows: "(2) planted or replanted before— " (A) December 30, 1969, in the case of a citrus grove, or " (B) December 30, 1970, in the case of an almond grove." SEC. 2. The amendments made by the first section of this Act shall apply to taxable years beginning after the date of the enactment of this Act. SEC. 3. (a) Subsection (a) of section 7275 of the Internal Revenue Code of 1954 (relating to requirements of showing total cost on airline tickets) is amended by— (1) inserting "and" at the end of paragraph (1) thereof, (2) striking out paragraph (2) thereof, and (3) renumbering paragraph (3) as paragraph (2) and striking out in such paragraph "paragraphs (1) and (2) " and inserting in lieu thereof "paragraph (1)". (b) Subsection (b) of such section (relating to requirements of showing total cost on airline advertising) is amended by striking out the word "only" in paragraph (1) and by amending paragraph (2) to read as follows:

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Page:United States Statutes at Large Volume 84 Part 2.djvu/735

 84 STAT. ]

PUBLIC LAW 91-681-JAN. 12, 1971

"(2) if any such advertising states separately the amount to be paid for such transportation or the amount of such taxes, shall state such total at least as prominently as the more prominently stated of the amount to be paid for such transportation or the amount of such taxes and shall describe such taxes substantially as: 'user taxes to pay for airport construction and airway safety and operations'.". SEC. 4. The amendments made by the third se> tion of this Act shall apply to transportation beginning after June 30, 1970. Approved January 12, 1971.

20(55

Effective date,,

Public Law 91-681 AN ACT To aineiul sertion 307 of the I n t e r n a l Revenue Code of 1954.

January 12, 1971 [H. R. 19686]

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) section 367 Taxes. Foreign of the Internal Revenue Code of 1954 (relating to foreign corpora- co^orau^ns. tions) is amended to read as follows: ^^A Stat. 119. '

26 USC 367.

"SEC. 367. FOREIGN CORPORATIONS. " (a) GENERAL RULE. — I n determining the extent to which gain shall be recognized in the case of any of the exchanges described in section 332, 351, 354, 355, 356, or 361, a foreign corporation shall not 8o^ltlt!l577.°^' be considered as a corporation unless— " (1) before such exchange, or "(2) in the case of an exchange described in subsection (b), either before or after such exchange, it has been established to the satisfaction of the Secretary or his delegate that such exchange is not in pursuance of a plan having as one of its principal purposes the avoidance of Federal income taxes. " (b) APPLICATION or SUBSECTION (a)(2).—Subsection (a)(2) shall apply in the case of a mere change in fonn in which there is an exchange by a foreign corporation of— " (1) stock in one foreign corporation for, " (2) stock in another foreign corporation, if the corporations referred to in paragraphs (1) and (2) differ only in their form of organization, and if the ownership of the corporation referred to in paragraph (1) immediately before such exchange is identical to the ownership of the corporation referred to in paragraph (2) immediately after such exchange. "(c)

SECTION

355

DISTRIBUTIONS TREATED AS EXCHANGES.—For

purposes of this section, any distribution described in section 355 (or so much of section 356 as relates to section 355) shall be treated as an exchange whether or not it is an exchange. "(d)

C O N T R I B U T I O N S OF C A P I T A L TO CONTROLLED CORPORATIONS.—

For purposes of this chapter, any transfer of property to a foreign corporation as a contribution to the capital of such corporation by one or more persons who, immediately after the transfer, own (within the meaning of section 318) stock possessing at least 80 percent of the ^^^A Stat. 99; total combined voting power of all classes of stock of such corporation ^*^** ^*^' entitled to vote shall be treated as an exchange of such property for stock of the foreign corporation equal in value to the fair market value of the property transferred unless, before such transfer, it has been established to the satisfaction of the Secretary or his delegate that such transfer is not in pursuance of a plan having as one of its principal purposes the avoidance of Federal income taxes."

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Page:United States Statutes at Large Volume 84 Part 2.djvu/736

 2066 Nontaxable transfers. 68A Stat. 365. 26 USC 1492.

Ante, p. 2065. Effective date.

PUBLIC LAW 91-682-JAN. 12, 1971

[84 STAT.

(b) Section 1492 of such Code (relating to nontaxable transfers) is amended— (1) by strikino; out the period at the end of paragraph (2) and inserting in lieu thereof a semicolon and "or"; and (2) by adding at the end thereof the following new paragraph: "(3) To a transfer to which section 367(d) applies." (c) The amendments made by this section shall apply to transfers made after December 31, 1967; except that sections 367(d) and 1492 of the Internal Revenue Code of 1954 (as amended by this section) shall apply only with respect to transfers made after December 31, 1970. Approved January 12, 1971.

Public Law 91-682 January 12, 1971 [H. R. 15728]

Naval v e s s e l s « Loans to foreign countries, extension. 70A Stat. 452.

50 USC app. 1878q-1878x.

75 Stat. 424. 22 USC 2151 note.

AN ACT To authorize the extension of certain naval vessel loans now in existence and new loans, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That notwithstanding section 7307 of title 10, United States Code, or any other law, the President may extend on such terms and under such conditions as he deems appropriate the loan of ships, previously authorized as indicated, as follows: (1) Greece, one submarine (Act of October 4, 1961 (75 Stat. 815)) and, (2) Pakistan, one submarine (Act of October 4, 1961 (75 Stat. 815)). SEC. 2. Notwithstanding section 7307 of title 10, United States Code, or any other provision of law, the President may lend two destroyer escorts to the Republic of Vietnam and two destroyers and two submarines to the Government of Turkey in addition to any ships previously authorized to be loaned to these nations, with or without reimbursement and on such terms and under such conditions as the President may deem appropriate. All expenses involved in the activation, rehabilitation, and outfitting (including repairs, alterations, and logistic support) of ships transferred under this section shall be charged to funds programed for the recipient government as grant military assistance under the provisions of the Foreign Assistance Act of 1961, as amended, or successor legislation, or to funds provided by the recipient government. The authority of the President to lend naval vessels under this section shall terminate on December 31, 1971. SEC. 3. All new loans and loan extensions executed under this Act shall be for periods not exceeding five years, but the President may in his discretion extend such loans for an additional period of not more than five years. Any agreement for a new loan or for the extension of a loan executed under this Act shall be made subject to the condition that the agreement may be terminated by the President if he finds that the armed forces of the borrowing country have engaged, at any time after the date of such agreement, in acts of warfare against any country which is a party to a mutual defense treaty ratified by the United States. All loans and loan extensions shall be made on the condition that they may be terminated at an earlier date if necessitated by the defense requirements of the United States.

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]

PUBLIC LAW 91-683-JAN. 12, 1971

2067 Consultation

SEC. 4. No loan may be made or extended under this Act unless the Secretary of Defense, after consultation with the Joint Chiefs of Staff, determines that such loan or extension is in the best interest of the United States. The Secretary of Defense shall keep the Congress „o";°nca^;r""' currently advised of all loans made or extended under this Act. Rules and SEC. 5. The President may promulgate such rules and regulations as regulations* he deems necessary to carry out the provisions of this Act. Approved January 12, 1971.

Public Law 91-683 AN ACT To amend section 1372 of the I n t e r n a l Revenue Code of 1954, relating to passive investment income.

January 12, 1971 [H. R. 19627]

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) subpara- T a x e s. Corporations, graph (C) of section 1372(e)(5) of the Internal Revenue Code of 1954 p a s s i v e investincome. (relating to passive investment mcome of small business corporations) ment Stat. 114. 80 is amended by inserting at the end thereof the following new sentence: 26 us^c i372. "Gross receipts derived from sales or exchanges of stock or securities for purposes of this paragraph shall not include amounts received by an electing small business corporation which are treated under section 331 (relating to corporate liquidations) as payments in exchange for stock where the electing small business corporation owned more than 50 percent of each class of the stock of the liquidating corporation." (b) The amendment made by subsection (a) shall apply to taxable Effective date. years of electing small business corporations ending after the date of the enactment of this Act. Such amendment shall also apply with respect to any taxable year ending before October 7, 1970, but only if— C o n d i t i o n s. (1) on such date the making of a refund or the allowance of a credit to the electing small business corporation is not prevented by any law or rule of law, and (2) within one year after the date of enactment of this Act and in such manner as the Secretary of the Treasury or his delegate prescribes by regulations— (A) the corporation elects to have such amendment so apply, and (B) all persons (or their personal representatives) who were shareholders of such corporation at any time during any taxable year beginning with the first taxable year to which this amendment applies and ending on or before the date of the enactment of this Act consent to such election and to the application of the amendment made by subsection (a). (c) If the assessment of any deficiency in income tax resulting from deficiency the filing of such election for a taxable year ending before the date of ^^^^^^""^^ • such filing is prevented before the expiration of one year after the date of such filing by any law or rule of law, such deficiency (to the extent attributable to such election) may be assessed at any time prior to the expiration of such one-year period notwithstanding any law or rule of law which would otherwise prevent such assessment. (d) If the election of a corporation under subsection (a) of section 1372 of the Internal Revenue Code of 1954 would have been terminated ^^ ^*^*- ^^^° because of the application of subsection (e)(5) of such section (before the amendment made by subsection (a) of this section) but for the election by such corporation under paragraph (2) of subsection (b) (and the consent of shareholders under such paragraph), such election under section 1372(a) of such code shall not be treated as terminated 47-348 O - 72 - 47 (pt. 2)

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PUBLIC LAW 91-684-JAN. 12, 1971

72 Stat. 1651. 26 USC 1372.

[84

STAT.

for any year beginning before the date of the enactment of this Act as a result of— (1) such corporation filing its income tax return on a form 1120 (instead of a form 1120S), or (2) a new shareholder not consenting to such election of such corporation in accordance with the requirements of subsection (e)(1) of such section 1372. Approved January 12, 1971.

Public Law 91-684 January 12, 1971

-^N ACT

[H. R. 18549]

To anieiKl sections 902(b) and 902(e) of the Internal Revenue Code of 1954 to rednc-e the oO-percent requirement to 10 percent between first and second levels and to include third-level foreign corporations in the tax credit stnicture if the 10-percent test is met.

ZT''^'

^

r oreign corpora"

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled. That section 902(b) « i

-i ~r^

x

-i

•

•

^ ^

tions, foreign tax ot the Internal Revenue Code of 1954 is amended to read as follows: "%i^^^,„„„ "(b) FOREIGN SUBSIDIARY OF FIRST AND SECOND FOREIGN CORPORA70 Stat. 1000, 26 USC 902.

^ ' TION.

(hereinafter in this subsection referred to as the 'first foreign corporation") owns 10 percent or more of the voting stock of a second foreign corporation from which it receives dividends in any taxable year, it shall be deemed to have paid the same proportion of any income, war profits, or excess profits taxes paid or deemed to be paid by such second foreign corporation to any foreign country or to any possession of the United States on or with respect to the accumulated profits of the corporation from which such dividends were paid which— " (A) for purposes of applying subsection (a)(1), the amount of such dividends bears to the amount of the accumulated profits (as defined in subsection (c)(1)(A)) of such second foreign corporation from which such dividends were paid in excess of such income, war profits, and excess profits taxes, or " (B) for purposes of applying subsection (a)(2), the amount of such dividends bears to the amount of the accumulated profits (as defined in subsection (c)(1)(B)) of such second foreign corporation from which such dividends were paid. "(2) If such first foreign corporation owns 10 percent or more of the voting stock of a second foreign corporation which, in turn, owns 10 percent or more of the voting stock of a third foreign corporation from which the second foreign corporation receives dividends in any taxable year, the second foreign corporation shall be deemed to have paid the same proportion of any income, war profits, or excess profits taxes paid by such third foreign corporation to any foreign country or to any possession of the United States on or with respect to the accumulated profits of the corporation from which such dividends were paid which— " (A) for purposes of applying subsection (a)(1), the amount of such dividends bears to the amount of the accumulated profits (as defined in subsection (c)(1)(A)) of such third foreign corporation from which such dividends were paid in excess of such income, war profits, and excess profits taxes, or
 * '(1) If the foreign corporation described in subsection (a)

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PUBLiC LAW 91-685-JAN. 12, 1971

"(B) for purposes of applying subsection (a)(2), the amount of such dividends bears to the amount of the accumulated profits (as defined in subsection (c)(1)(B)) of such third foreign corporation from which such dividends were paid. "(3) For purposes of this subpart, subsection (b)(1) shall not apply unless the percentage of voting stock owned by the domestic corporation in the first foreign corporation and the percentage of voting stock owned by the first foreign corporation in the second foreign corporation when multiplied together equal at least 5 percent, and for purposes of this subpart, subsection (b)(2) shall not apply unless the percentage arrived at for purposes of applying subsection (b)(1) when multiplied by the percentage of voting stock owned by the second foreign corporation in the third foreign corporation is equal to at least 5 percent." SEC. 2. Section 902(c)(1) of the Internal Revenue Code of 1954 is amended— (1) by striking out "subsections (a)(1) and (b)(1)," in subparagraph (A) and inserting in lieu thereof the following: "subsections (a)(1), (b)(1)(A), and (b)(2)(A),"; and (2) by striking out "subsections (a)(2) and (b)(2)," in subparagraph (B) and inserting in lieu thereof the following: "subsections (a)(2), (b)(1)(B),and (b)(2)(B),". SEC. 3. The amendments made by this Act shall apply with respect to all taxable years of domestic corporations, ending after the date of enactment of this Act, but only in respect of dividends paid by one corporation to another corporation after the date of the enactment of this Act. Approved January 12, 1971.

2069

76 Stat. 1000. 26 USC 902.

Public Law 91-685 AN ACT To amend the Tariff Act of 1930 to grant to the transferee of merchandise in bonded warehouse the right to administrative review of customs decisions.

January 12, 1971 [H. R. 19391]

Be it enacted by the SeTiate and House of Representatives of the United States of America in Congress assembled, That section 557(b) t r aMerchandise n s f e r e e, proof the Tariff Act of 1930 (19 U.S.C. 1557(b)) is amended by striking t e s t right. out the fourth, fifth, and sixth sentences and inserting in lieu thereof 67 Stat. 519. the following: "The transferee shall also have the right to receive all lawful refunds of money paid by him to the United States with respect to the merchandise the subject of the transfer, and shall have the right to file a protest under section 514 of this Act to the same extent that Ante, p. 284,, such right would have been available to the transferor. Notice of liquidation shall be given to the transferee in the form and manner prescribed by the Secretary of the Treasury." SEC. 2. The amendment made by the first section of this Act shall apply with respect to articles entered for warehousing on or after the date of the enactment of this Act. Approved January 12, 1971.

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 2070

PUBLIC LAW 91-686-JAN. 12, 1971

[84

STAT.

Public Law 91-686 AN ACT January 12, 1971

[H. R. 19790]

^,

.

,

.

Relating to the income tax treatment of certain sales of real property by a corporation.

Be it enacted by the Senate and House of Representatives of the Taxes. United States' of America in Congress assembled, That (a) for pursaierby'^corpora- posBS of the Iiitemal Revenue Code of 1954 any lot or parcel of real ti°nproperty sold or exchanged by a corporation which would, but for this 26^sc^\' I't seq. ^^t? be treated as property held primarily for sale to customers in the ordinary course of trade or business shall not, except to the extent provided in (b), be so treated if— (1) no shareholder of the corporation directly or indirectly holds real property primarily for sale to customers in the ordinary course of trade or business; and (2)(A) such lot or parcel is a part of real property (i) held for more than twenty-five years at the time of sale or exchange, and (ii) acquired before January 1, 1984, by the corporation as a result of the foreclosure of a lien (or liens) thereon which secured the payment of indebtedness held by one or more creditors who transferred one or more foreclosure bids to the corporation in exchange for all its stock (with or without other consideration), or (B)(i) such lot or parcel is a part of additional real property acquired before January 1, 1957, by the corporation in the near vicinity of any real property to which subparagraph (A) applies, or (ii) such lot or parcel is wholly or to some extent a part of any minor acquisition made after December 31, 1956, by the corporation to adjust boundaries, to fill gaps in previously acquired property, to facilitate the installation of streets, utilities, and other public facilities, or to facilitate the sale of adjacent property, or (iii) such lot or parcel is wholly or to some extent a part of a reacquisition by the corporation after December 81, 1956, of property previously owned by the corporation; but only if at least 80 percent (as measured by area) of the real property sold or exchanged by the corporation within the taxable year is property described in subparagraph (A); and (3) there were no acquisitions of real property by the corporation after December 31, 1956, other than— (A) acquisitions described in paragraph (2)(B) (ii) and reacquisitions described in paragraph (2)(B) (iii), or (B) acquisitions of real property used in a trade or business of the corporation or held for investment by the corporation; and (4) the corporation did not after December 31, 1957, sell or exchange (except in condemnation or under threat of condemnation) any residential lot or parcel on which, at the time of the sale or exchange, there existed any substantial improvements (other than improvements in existence at the time the land was acquired by the corporation) except subdivision, clearing, grubbing, and grading, building or installation of water, sewer, and drainage facilities, construction of roads, streets, and sidewalks, and installation of utilities. In any case in w4iich a corporation referred to in paragraphs (1), (2), (3), and (4) is a member of an affiliated group as defined in section 68A Stat. 369. 1504(a) of the Internal Revenue Code of 1954, such affiliated group

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PUBLIC LAW 91-687-JAN. 12, 1971

shall, for purposes of such paragraphs, be treated as a single corporation. (b)(1) Gain from any sale or exchange described in subsection (a) shall be deemed, for purposes of such Code, to be gain from the sale of property held primarily for sale to customers in the ordinary course of trade or business to the extent of 5 percent of the selling price. (2) For the purpose of computing gain under paragraph (1), expenditures incurred in connection with the sale or exchange of any lot or parcel shall neither be allowed as a deduction in computing taxable income, nor treated as reducing the amount realized on such sale or exchange; but so much of such expenditures as does not exceed the portion of gain deemed under paragraph (1) to be gain from the sale of property held primarily for sale to customers in the ordinary course of trade or business shall be so allowed as a deduction, and the remainder, if any, shall be treated as reducing the amount realized on such sale or exchange. (c) The provisions of subsections (a) and (b) shall apply to taxable years beginning after December 31, 1957, and before January 1, 1984. SEC. 2. (a) Section 1237 of the Internal Revenue Code of 1954 is amended by: (1) in subsection (a), striking out the parenthetical expression: "(including corporations only if no shareholder directly or indirectly holds real property for sale to customers in the ordinary course of trade or busmess and only in the case of property described in the last sentence of subsection (b)(3)) " and inserting in lieu thereof the words "other than a corporation"; (2) in subsection (b), striking out the last sentence. (b) The amendments made by subsection (a) shall be effective for taxable years beginning after the date of enactment of this Act. Approved January 12, 1971.

2071

Effective date.

68A Stat. 330; 70 Stat. 118. 26 USC 1237,

Effective date.

Public Law 91-687 AN ACT

To amend section 165(g) of the Internal Revenue Code of 1954 which provides for treatment of losses on worthless securities.

Be it enacted by the Senate and House of Representatives of the United States of Ameiica in Congress assembled, That section 165 of the Internal Revenue Code of 1954 (relating to losses) is amended— (a) by striking out in subsection (g)(3)(A) "at least 95 percent of each class of its stock" and inserting in lieu thereof "stock possessing at least 80 percent of the voting power of all classes of its stock and at least 80 percent of each class of its nonvoting stock", and (b) by adding at the end of subsection (g)(3) the following: "As used in subparagraph (A), the term 'stock' does not include nonvoting stock which is limited and preferred as to dividends." SEC. 2. The amendments made by this Act shall apply with respect to taxable years beginning on or after January 1, 1970. Approved January 12, 1971.

January 12, 197 1

[H. R. 19369]

Taxes. Worthless securities, l o s s e s. 68A Stat. 49. 26 USC 165.

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PUBLIC LAW91-688-JAN. 12, 1971

[84 STAT.

Public Law 91-688 January 12, 1971 [H. R.19881]

Tax returns. Life insurance companies. 73 Stat. 133. 26 USC 818.

AN ACT Relating to consolidated returns of life insurance companies, and for other purposes.

Be it enacted by the Senate and House of Repremrdatlves of the United States of America in Congress assembled, That (a) section 818 of the Internal Revenue Code of 1954 (relating to life insurance company accounting provisions) is amended by adding at the end thereof the following new subsection: " (g) COMPUTATION ON CONSOLIDATED RETURNS OF POLICYHOLDERS' SHARE OF INVESTMENT YIELD.—For purposes of this part, in the case

68A Stat, 367.

73 Stat. 115.

68A Stat. 8 49. Refund or c redit allowance

of a life insurance company filing or required to file a consolidated return under section 1501 for a taxable year, the computations of the policyholders' share of investment yield under subparts B and C (including all determinations and computations incident thereto) shall be made as if such company were not filing a consolidated return." (b) The amendment made by subsection (a) shall apply with respect to taxable years beginning after December 31, 1957. SEC. 2. (a) If— (1) any insurance company subject to taxation under section 802 of the Internal Revenue Code of 1954 filed a consolidated return under section 1501 of such Code for any taxable year beginning after December 31, 1957, and ending before March 13, 1969, and (2) not later than one year after the date of the enactment of this Act— (A) such company elects (in such manner as the Secretary of the Treasury or his delegate may prescribe) to have this section apply, (B) such company files consents to the application of this section of all companies which at any time during any taxable year beginning after December 31, 1957, and ending before March 13, 1969, were members of the same affiliated group as such company, and (C) such company (and each company referred to in subparagraph (B)) files a separate return for the first taxable year beginning after December 31, 1957, for which such company filed a consolidated return and for each taxable year thereafter ending before the date of the enactment of this Act, then notwithstanding any law or rule of law the requirement of filing a consolidated return shall be replaced by a requirement of separate returns for each company referred to in paragraph (2)(C) for each taxable year to which paragraph (2)(C) applies with respect to such company. Paragraph (2)(C) shall not apply with respect to any company for any taxable year the allowance of a credit for which is barred on the date of the enactment of this Act by res judicata or through the operation of section 7121 or section 7122 of the Internal Revenue Code of 1954. (b) If the making or allowance of any refund or credit, or the assessment of any deficiency, of income tax for any taxable year to which subsection (a)(2)(C) applies is prevented before the expiration of 2 years after the date of the enactment of this Act by any law or rule of law (other than sections 7121 and 7122 of such Code and other than res judicata), such refund or credit may nevertheless be made or allowed, and such deficiency may nevertheless be assessed.

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2073

at any time before the expiration of such 2-year period, but only to the extent that the overpayment or deficiency is attributable to an election made under this section. No interest shall be allowed on any credit or refund described in the preceding sentence, and no interest shall be assessed with respect to any deficiency described in the preceding sentence, for any period before the day which is one year after the date of the enactment of this Act. SEC. 3. (a) For purposes of applying section 1212(a) of the Internal Revenue Code of 1954 (as amended by section 512 of the Tax Reform Act of 1969) in the case of a corporation which makes an election under subsection (b), any net capital loss sustained in a taxable year beginning after December 31, 1969, may not be carried back to any taxable year beginning before January 1, 1970, for which it was subject to taxation under section 802 of such Code, if the carryback of such loss would result in an increase in such corporation's income tax liability for any such taxable year. (b) An election to have the provisions of subsection (a) apply shall be made by a corporation— (1) in such form and manner as the Secretary of the Treasury or his delegate may prescribe, and (2) not later than the time prescribed by law for filing a claim for credit or refund of overpayment of income tax for the first taxable year beginning after December 31, 1969, in which such corporation sustains a net capital loss. (c) The Secretary of the Treasury or his delegate shall prescribe such regulations as he determines necessary to carry out the purposes of this section. Approved January 12, 1971.

Capital carryover, rations. 83 Stat. 26 USC

loss corpo638. 1212.

73 Stat. 115.

Regulations.

Public Law 91-689 AN ACT

To suspend the duties on certain bicycle parts and accessories until the close of December 31, 1973. Be it enacted by the Senate and House of Representatives of the United States of Ameiica in Congress assembled, That subpart B of part 1 of the appendix to title I of the Tariff Act of 1930 (Tariff Schedules of the United States; 28 F.R., pt. II, Aug. 17, 1963; 77A Stat.; 19 U.S.C. 1202) is amended as follows: Immediately preceding item 915.25 insert the following new items: "912,05

912.10

Generator lighting sets for bicycles (provided for in item 663.39, part 3F, scliedule 6)

Free

No change

On or before 12/31/73,

Derailleurs, caliper brakes, drum brakes, three-speed hubs incorporating coaster brakes, three-speed hubs not incorporating coaster brakes, click twist grips, click stick levers, multiple freewheel sprockets (provided for in item 732.36, part 60, schedule?)

Free

No change

On or before 12/31/73.

SEC. 2. The amendments made by this Act shall apply with respect to articles entered, or withdrawn from warehouse, for consumption after the date of enactment of this Act. Approved January 12, 1971.

January 12, 1971 [H. R. 19670]

Bicycle part s. Duty suspen-

77A Stat. 434. 80 Stat. 7 1.

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PUBLIC LAW 91-690-JAN. 12, 1971

[84

STAT.

Public Law 91-690 January 12, 1971 [H. R. 19470]

Nursing service requirements, modification. 79 Stat. 315. 42 USC 139SX.

AN ACT To amend title XVIII of the Social Security Act to modify the nursing service requirement and certain other requirements which an institution must meet in order to qualify as a hospital thereunder so as to make such re^ quirements more realistic insofar as they apply to smaller institutions.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 1861 (e)(5) of the Social Security Act is amended by adding immediately after the semicolon at the end thereof the following: "except that until January 1, 1976, the Secretary is authorized to waive the requirement of this paragraph for any one-year period with respect, to any institution, insofar as such requirement relates to the provision of twenty-four-hour nursing service rendered or supervised by a registered professional nurse (except that in any event a registered professional nurse must be present on the premises to render or supervise the nursing service provided, during at least the regular daytime shift), where immediately preceding such one-year period he finds that— " (A) such institution is located in a rural area and the supply of hospital services in such area is not sufficient to meet the needs of individuals residing therein, " (B) the failure of such institution to qualify as a hospital would seriously reduce the availability of such services to such individuals, and "(C) such institution has made and continues to make a good faith effort to comply with this paragraph, but such compliance is impeded by the lack of qualified nursing personnel in such area;". Approved January 12, 1971.

Public Law 91-691 January 12, 1971 [H. R. 17917]

Taxes. Union-negotiated pension p l a n s, qualification period. 78 Stat. 57. 26 USC 4 0 1.

Effective date.

AN ACT To amend the Internal Revenue Code of 1954 with respect to the period of qualification of certain union-negotiated pension plans.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) section 401 (i) of the Internal Revenue Code of 1954 (relating to certain union-negotiated pension plans) is amended— (1) by striking out "Multiemployer" in the heading, and (2) by striking out paragraph (1) and inserting in lieu thereof the following: "(1) such trust was created pursuant to a collective bargaining agreement between employee representatives and one or more employers,", (b) The amendments made by subsection (a) shall apply to taxable years beginning after December 31, 1953, and ending after August 16, 1954, but only with respect to contributions made after December 31, 1954. Approved January 12, 1971.

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2075

PUBLIC LAW 91-692-JAN. 12, 1971

Public Law 91-692 AN ACT To amend the Tariff Schedules of the United States to provide for a partial exemption from duty for aircraft manufactured or produced in the United States with the use of foreign components imported under temporary importation bond, and for other purix»ses.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled. That (a) schedule 8, part l A, of the Tariff Schedules of the United States (19 U.S.C. 1202) is amended by striking out item 804.00 and inserting in lieu thereof the followinjr:

804.10

Articles previously exported from the United States which—except for headnote 1 of this subpart—would qualify for free entry under one of the foregoing items and are not otherwise free of duty: Aircraft exported from the United States with benefit of drawback or item 864.05

A duty equal to the duty upon the importation of like articles not previously exported, but in no case in excess of the sum of (a) any customs drawback proved to have been allowed upon such exportation, and (b) the duty which would have been payable on any articles used in the manufacture or production of such aircraft had they not been entered and exported under item 864.05.

A duty equal to the duty upon the importation of like articles not previously exported, but in no case in excess of the sum of (a) any customs drawback proved to have been allowed upon such exportation, and (b) the duty which would have been payable on any articles used in the manufacture or production of such aircraft had they not been entered and exported under item 864.05.

January 12, 1971 [H. R. 1 7 0 6 8;

Certain aircraft. Partial duty exemption. 77A Stat. 405,

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2076 804.20

77A Stat. 405.

46 Stat. 693.

J e t aircraft engines.

Other, except articles excluded by headnote 1(c) of this subpart.

A duty (in lieu of any other duty or tax) equal to the sum of any duty and internalrevenue tax imposed upon the importation of like articles not previously exported, but in no case in excess of the sum of (a) any customs drawback proved to have been allowed upon such exportation of the article, and (b) any internal-revenue tax imposed, at the time such article is entered. upon the importation Of like articles not previously exported.

[84 STAT. A duty (in lieu of any other duty or tax) equal to the sum of any duty and internalrevenue tax imposed upon the importation of like articles not previously exported, but in no case in excess of the sum of (a) any customs drawback proved to have been allowed upon such exportation of the article, and (b) any Internal-revenue tax imposed. at the time such article is entered. upon the importation of like articles not previously exported.

(b) Headnotes 1 and 2, schedule 8, part lA of such Schedules are each amended by striking out "item 804.00" and inserting in lieu thereof "items 804.10 and 804.20". SEC. 2. The amendments made by the first section of this Act shall apply to articles entered, or withdrawn from warehouse, for consumption on or after the date of the enactment of this Act. SEC. 3. (a) Section 313 of the Tariff Act of 1930 (19 U.S.C. 1313) is amended by redesignating subsections (h), (i), and (j) as (i), (j), and (k), respectivdy, and by inserting after subsection (g) the following new subsection: "(h) Upon the exportation of jet aircraft engines manufactured or produced abroad that have been overhauled, repaired, rebuilt, or reconditioned in the United States with the use of imported merchandise, including parts, there shall be refunded, upon satisfactory proof that such imported merchandise has been so used, the duties which have been paid thereon, in amounts not less than $100." (b) The amendments made by subsection (a) shall apply with respect to articles exported on or after the date of the enactment of this Act. Approved January 12, 1971.

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