Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That subsection (a) Renegotiation of section 102 of the Renegotiation Act of 1951 is hereby amended by Act of 1951, exstriking out "December 31, 1953" and inserting in lieu thereof "De- tension, eto. cember 31, 1954."

65 Stat. 7. 50 USC app. 1212.

SEC. 2. (a) Section 105 (f) (1) of such Act is amended by striking out "$250,000" wherever it appears therein and inserting in lieu Aggregate thereof the following: "$250,000, in the case of a fiscal year ending amounts. before June 30, 1953, or $500,000, in the case of a fiscal year ending on 50 USC app. or after June 30, 1953”.

(b) Section 105 (f) (3) of such Act is amended by inserting, in the second sentence thereof, after "the $250,000 amount" the following: ", the $500,000 amount,”.

1215.

SEC. 3. (a) Paragraph (6) of section 106 (a) of such Act is hereby Exemptions. amended by inserting immediately following the second period therein 50 USC app. the following: "In designating those classes and types of contracts 1216. which shall be exempt and in exempting any individual contract under this paragraph, the Board shall consider as not having a direct or immediate connection with national defense any contract for the furnishing of materials or services to be used by the United States, a Department or agency thereof, in the manufacture and sale of synthetic rubbers to a private person or to private persons which are to be used for nondefense purposes. If the use by such private person or persons shall be partly for defense and partly for nondefense purposes, the Board shall consider as not having a direct or immediate connection with national defense that portion of the contract which is determined not to have been used for national defense purposes. The method used in making such determination shall be subject to approval by the Board."

(b) The amendment made by subsection (a) shall be effective as 68 Stat. 1116. if it were a part of such Renegotiation Act of 1951 on the date of its 68 Stat. 1117.

enactment.

SEC. 4. (a) Paragraph (1) of section 106 (c) of such Act is hereby Durable proamended by striking out "from subcontracts" and inserting in lieu duotive equipthereof "from contracts or subcontracts."

(b) Paragraph (1) of section 106 (c) of such Act is further amended by inserting "(A)" after the word "except" and by adding before the period at the end of such paragraph the following: "and (B) to receipts and accruals from contracts for new durable productive equipment in cases in which the Board finds that the new durable productive equipment covered by such contracts cannot be adapted, converted, or retooled for commercial use".

(c) Paragraph (2) of such section 106 (c) is hereby amended to read as follows:

"(2) DEFINITION.-For the purpose of this subsection, the term 'durable productive equipment' means machinery, tools, or other equipment which does not become a part of an end product, or of an article incorporated therein, and which has an average useful life of more than five years."

(d) The amendments made by subsections (a), (b), and (c) shall

ment.

apply only with respect to fiscal years (as defined in section 103 (h) 50 USC app. of the Renegotiation Act of 1951) ending on or after June 30, 1953. 1213.

50 USC app. 1216.

Standard oom

mercial ar

tioles.

Excessive profits.

50 USC app. 1215.

68 Stat. 1117. 68 Stat. 1118.

SEC. 5. (a) Section 106 (a) of such Act is hereby amended

(1) by striking out, in paragraph (7), "by reason of this subsection." and inserting in lieu thereof "by reason of any paragraph, other than paragraph (8), of this subsection; or"; and

(2) by adding at the end of such section the following: "(8) any contract or subcontract for the making or furnishing of a standard commercial article, unless the Board makes a specific finding that competitive conditions affecting the sale of such article are such as will not reasonably prevent excessive profits. This paragraph shall apply to any such contract or subcontract only if (1) the contractor or subcontractor files, at such time and in such form and detail as the Board shall by regulations prescribe, such information and data as may be required by the Board under its regulations for the purpose of enabling it to reach a decision with respect to the making of a specific finding under this paragraph, and (2) within a period of six months after the date of filing of such information and data, the Board fails to make a specific finding that competitive conditions affecting the sale of such article are such as will not reasonably prevent excessive profits, or (3) within such six-month period, the Board makes a specific finding that competitive conditions affecting the sale of such article are such as will reasonably prevent,excessive profits. Any contractor or subcontractor may waive the exemption provided in this paragraph with respect to receipts or accruals in any fiscal year by including a statement to such effect in the financial statement filed by such contractor or subcontractor for such fiscal year pursuant to section 105 (e) (1). Any specific finding of the Board under this paragraph shall not be reviewed or redetermined by any court or agency other than by the Tax Court of the United States in a proceeding for a redetermination of the amount of excessive profits determined by an order of the Board. For the purpose of this paragraph

"(A) the term 'article' includes any material, part, component, assembly, machinery, equipment, or other personal property;

(B) the term 'standard commercial article' means an article

"(1) which, in the normal course of business, is customarily manufactured for stock, and is customarily maintained in stock by the manufacturer or any dealer, distributor, or other commercial agency for the marketing of such article; or

76 (2) which is manufactured and sold by more than two persons for general civilian industrial or commercial use, or which is identical in every material respect with an article so manufactured and sold;

"(C) the term 'identical in every material respect' means of the same kind, manufactured of the same or substitute materials, and having the same industrial or commercial use or uses, without necessarily being of identical specifications; and

"(D) the term 'persons' does not include any person under control of, or controlling, or under common control with any other person considered for the purposes of subparagraph (B) (2) of this paragraph."

(b) The amendments made by subsection (a) shall apply to contracts with the Departments and subcontracts only to the extent of the amounts received or accrued by a contractor or subcontractor after December 31, 1953.

Pub. Law 764

All 68 Stat. 1118.

SEO. 6. (a) Section 106 (a) (4) of such Act is hereby amended 50 USC app. by striking out"; or" at the end thereof and inserting the following: 1216. "and to such furnishing or sale in any case in which the Board finds Common carriers that the regulatory aspects of rates for such furnishing or sale, or by water. the type and nature of the contract for such furnishing or sale, are such as to indicate, in the opinion of the Board, that excessive profits are improbable; or".

(b) The amendment made by subsection (a) shall apply only with respect to fiscal years (as defined in section 103 (h) of the Renegotia- 50 USC app. tion Act of 1951) ending on or after December 31, 1953.

66

1213.

SEC. 7. (a) Section 105 (d) of such Act is hereby amended by 50 USC app. striking out the period at the end of the last sentence thereof and 1215. inserting the following: ", and shall also have the power to set aside Voiding of and declare null and void any such agreement if, upon a request agreement. made to the Board within three years from the date of such agreement, the Board finds as a fact that the aggregate of the amounts received or accrued by the other party to such agreement during the fiscal year covered by such agreement was not more than the minimum amounts subject to renegotiation specified in section 105 (f) for such fiscal year."

(b) The amendment made by subsection (a) shall be effective as if it were a part of the Renegotiation Act of 1951 on the date of its enactment.

and by

any such

50 USC app.

1231.

Savings provi

SEC. 8. Section 201 (h) of such Act is hereby amended by striking 66 Stat. 753. out "two years" and inserting in lieu thereof "four years", adding at the end thereof the following new sentence: "If case has been dismissed by any court for failure to substitute for the War Contracts Price Adjustment Board prior to the effective date of this sentence, such case is hereby revived and reinstated in such court as if it had not been dismissed."

Approved September 1, 1954.

sion.

[CHAPTER 268-1ST SESSION]

[H. J. Res. 276]

JOINT RESOLUTION

Granting certain extensions of time for tax purposes.

Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That sections 403 (d) (3) and 452 (c) of the Revenue Act of 1942 (relating to release of certain powers of appointment in the case of the estate and gift taxes) are hereby amended by striking out "1949" wherever appearing therein and inserting in lieu thereof "1950".

SEC. 2. (a) Subsection (j) of the Renegotiation Act, as amended (U. S. C., 1946 edition, Supp. I, title 50 App., sec. 1191 (j)), is hereby amended by striking out "June 30, 1949" and inserting in lieu thereof “June 30, 1950".

(b) Section 283 of title 18 of the United States Code is hereby amended by inserting after the first paragraph thereof a new paragraph as follows:

"Retired officers of the armed forces of the United States, while not on active duty, shall not by reason of their status as such be subject to the provisions of this section. Nothing herein shall be construed to allow any such retired officer within two years next after his retirement to act as agent or attorney for prosecuting or assisting in the prosecution of any claim against the United States involving the department in whose service he holds a retired status, or to allow any such retired officer to act as agent or attorney for prosecuting or assisting in the prosecution of any claim against the United States involving any subject matter with which he was directly connected while he was in an active-duty status."

Approved June 28, 1949.

(492)

[PUBLIC LAW 434-818T CONGRESS]

[CHAPTER 787-10 SESSION]

[H. R. 4140)

AN ACT

Making appropriations for the National Security Council, the National Security Resources Board, and for military functions administered by the National Military Establishment for the fiscal year ending June 30, 1950, and for other purposes.

SEC. 622. (a) All negotiated contracts for procurement in excess of $1,000 entered into during the fiscal year 1950 by or on behalf of the Department of Defense (including the Department of the Army, Department of the Navy, and Department of the Air Force), and all subcontracts thereunder in excess of $1,000, are hereby made subject to the Renegotiation Act of 1948 in the same manner and to the same extent as if such contracts and subcontracts were required by such Act to contain the renegotiation article prescribed in subsection (a) of such Act. Each contract and subcontract made subject to the Renegotiation Act of 1948 by this section shall contain an article stating that it is subject to the Renegotiation Act of 1948. In determining whether the amounts received or accrued to a contractor or subcontractor during his fiscal year from contracts and subcontracts subject to the Renegotiation Act of 1948 amount in the aggregate to $100,000, receipts or accruals from contracts and subcontracts made subject to such Act by this section shall be added to receipts or accruals from all other contracts and subcontracts subject to such Act.

(b) Notwithstanding any agreement to the contrary, the profit limitation provisions of the Act of March 27, 1934 (48 Stat. 503, 505), as amended and supplemented, shall not apply to any contract or subcontract which is subject to the Renegotiation Act of 1948. Approved, October 29, 1949.

(493)