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CHAPTER COST OF LIVING COUNCIL
Coverage, exemptions and classification of economic units.
Rulings-Internal Revenue Service/Cost of Living Council.
PART 101-COVERAGE, EXEMPTIONS Sec.
101.32 Raw agricultural products, raw sea
food products, and raw sugar price NOMIC UNITS
101.33 Real estate and insurance preSubpart A-General
101.34 Certain price adjustments. 101.1 Purpose and scope.
101.35 Certain pay adjustment. 101.2 Definitions.
101.36 Miscellaneous. Subpart B-Price Adjustments Classification
Subpart Special Provisions
101.101 Special provisions applicable from
November 14, 1971 to January 31, ments.
1972. 101.13 Price Category II firms; reporting
101.102 Special provisions applicable to requirements.
retroactive and deferred pay ad101.15 Price Category III firms; monitor
justments provided prior to Auing and spot checks.
gust 15, 1971. 101.16 Modification of prenotification re- 101.103 Pay adjustments required under the quirements.
Fair Labor Standards Act, wage 101.17 Modification of reporting require
determinations made by an agency ments.
in the executive branch and cer101.19 Reclassification.
tain employee incentive plans.
101.104 Pay adjustments to those individSubpart C-Pay Adjustments Classification and
uals earning less than $1.90 per Procedures
hour. 101.21 Category I pay adjustments; con
Subpart G Sanctions struction pay adjustments; pre- 101.201 Sanctions; criminal fine and civil notification requirements.
penalty. 101.23 Category II pay adjustments; re- 101.202 Injunctions and other relief. porting requirements.
AUTHORITY: The provisions of this Part 101 101.25 Category III pay adjustments; issued under Economic Stabilization Act of monitoring and spot checks.
1970, as amended, Public Law 91-379, 84 101.28 Pay adjustments of State and local Stat. 799; Public Law 91-558, 84 Stat. 1468; government employees.
Public Law 92–8, 85 Stat. 13; Public Law 101.29 Reclassification,
92–15, 85 Stat. 38; Public Law 92-210, 85
Stat. 743; and Executive Order No. 11640. Subpart D-Exemptions— Items not Included in
SOURCE: The provisions of this Part 101 Coverage
appear at 37 F.R. 1237, Jan. 27, 1972, unless 101.31 General
Subpart A—General f 101.1 Purpose and scope.
(a) The purpose of this part is to establish the economic units and transactions which are covered by, or are exempt from, the controls, standards, and criteria established for the post-freeze economic stabilization period. The purpose is also to establish categories of economic units which must comply with the prenotification, reporting, and other procedural requirements prescribed by the Cost of Living Council.
(b) This part applies to all price adjustments and to all pay adjustments which occur during the post-freeze economic stabilization period, except those which are specifically exempt under this part.
(c) This part does not apply to economic transactions which are not prices, rents, wages, and salaries within the meaning of the Act as amended. Examples of transactions not within the meaning of the Act are:
(1) State or local income, sales and real estate taxes;
(2) Workmen's compensation payments;
(3) Welfare payments;
(d) The Cost of Living Council may permit any exceptions, exemptions or reclassifications that it considers appropriate with respect to the coverage, classification, and other procedural requirements prescribed in this part, Requests for exceptions or exemptions from the coverage, classification, and other procedural requirements of this part shall be submitted in accordance with the provisions of Parts 105, 205, 305, and 401 of this title.
(e) This part applies to:
(i) economic units and transactions in the several States and the District of Columbia; and
(ii) sales of goods and services by firms in the several States and the District of Columbia to firms in the Commonwealth of Puerto Rico. [37 F.R. 1237, Jan. 27, 1972 as amended at 37 F.R. 3913, Feb. 24, 1972) $ 101.2 Definitions.
"Act” means the Economic Stabilization Act of 1970, as amended.
"Annual sales or revenues” means the total gross receipts of a firm during its
most recent fiscal year from whatever source derived.
“Council” means the Cost of Living Council established by Executive Order No. 11615 (3 CFR, 1971 Comp., 36 F.R. 15727) and continued under the provisions of Executive Order No. 11640 (3 CFR, 1972 Comp., 37 F.R. 1213).
"Employer” means a firm which employs one or more persons who receive a wage or salary.
"Exception" means a waiver directed to an individual firm in a particular case which relieves it from the requirements of a rule, regulation, or order issued pursuant to the act.
"Exemption" means a general waiver of the requirements of all rules, regulations, and orders issued pursuant to the act.
"Firm” means any person, corporation, association, estate, trust, partnership, joint-venture, or sole proprietorship or any other entity however organized including charitable, educational, or other eleemosynary institutions, and the Federal and State and local governments.
"Mass transportation system” means a public benefit corporation, with annual sales or revenues in excess of $10 million, which is charged by law or contract with the responsibility of operating a mass transportation facility or facilities which:
(a) Serves a Standard Metropolitan Statistical Area (SMSA); and
(b) Constitutes the sole or a principal means of public transportation for that area. A facility or facilities includes a rapid rail transit, subway, elevated, bus system but does not include school buses or other conveyances used primarily for sight-seeing or chartered for private use.
"Non-profit organization” or one which is "not operated for profit” is a firm which is defined as a nonprofit organization in section 501(c) and is exexempt under section 501(a) of the Internal Revenue Code of 1954, amended.
“Pay adjustment” means a change in wages and salaries which includes all forms of direct or indirect remuneration or inducement to employees by their employers for personal services, which are reasonably subject to valuation, including but not limited to: Vacation and holiday payments; bonus; layoff and severance pay plans; supplemental unemployment benefits; night shift, over
time, production, and incentive pay; em- “Retail firm" means a firm whose anployer contributions for insurance plans nual sales or revenues are primarily from (but not including public plans, e.g. old the sale of goods to ultimate consumers. age, survivors, health, and disability in- "Security” means any note, stock, surance under the Social Security sys- treasury stock, bond, debenture, evidence tem, Railroad Retirement Acts, Federal of indebtedness, certificate of interest or Insurance Contributions Act, Federal participation in any profit-sharing Unemployment Tax Acts, Civil Service agreement, collateral-trust certificate, Retirement Acts and the Carriers and preorganization certificate or subscripEmployees Tax Act); savings, pension, tion, transferable share, investment conprofit sharing, annuity funds, and other tract, voting-trust certificate, certificate deferred compensation and welfare bene- of deposit for a security, fractional unfits; payments in kind, job perquisites; divided interest in oil, gas, or other minhousing allowances; uniform and other eral rights, or, in general, any interest work clothing allowances (but not in- or instrument commonly known as a cluding employer-required uniforms and “security," or any certificate of interest work clothing whether or not for safety or participation in, temporary or interim purposes); cost-of-living allowances; certificate for, receipt for, guarantee of, commission rates, stock options, and or warrant or right to subscribe to or other fringe benefits; and benefits which purchase, any of the foregoing. result in more pay per hour or other “State and local governments" means unit of work or production (e.g., by the several States and the District of shortening the workday without a pro- Columbia, a municipality or other politiportionate decrease in pay). Notwith- cal subdivision, authority, commission, standing the foregoing definition of pay board, district, public corporation or adjustment, contributions by any em- other agency or instrumentality of the ployer for:
several States and the District of Co(a) Any pension, profit sharing, or lumbia and any board, commission, annuity and savings plan which meets
agency, or other instrumentality of a the requirements of section 401(a), 404 local government. (a) (2), or 403(b) of the Internal Reve
[37 F.R. 1237, Jan. 27, 1972, as amended at nue Code of 1954;
37 F.R. 2678, Feb. 4, 1972; 37 F.R. 3913, (b) Any group insurance plan; or Feb. 24, 1972] (c) Any disability and health plan;
Subpart B-Price Adjustmentsare not to be included in wages and
Classification and Procedures salaries unless such contributions are determined by the Pay Board to be un- $ 101.11 Price category I firms; prereasonably inconsistent with the stand- notification and reporting requireards issued pursuant to section 203(b)
ments. of the Act.
(a) A price category I firm is a firm “Pay Board” means the Board estab
with annual sales or revenues of $100 lished pursuant to section 7 of Execu
million or more, or a firm that operates tive Order No. 11627 (3 CFR, 1971 Comp.,
or controls a mass transportation system 36 F.R. 20139).
the fares of which are not otherwise "Prenotification” means notice sub- regulated. mitted to the Price Commission or Pay
(b) Each price category I firm shall Board relating to a proposed price ad
submit a prenotification to the Price justment or pay adjustment.
Commission of each proposed price ad“Price adjustment” means an increase justment in accordance with regulain the unit price of property or services tions issued by the Price Commission. or a decrease in the quality of substan
(c) No proposed price adjustment tially the same property or services. shall be put into effect by any price
"Price Commission" means the Com- category I firm unless such price adjustmission established pursuant to section ment has been approved or permitted to 8 of Executive Order No. 11627.
take effect in accordance with regula“Real estate with improvements" tions issued by the Price Commission, means land upon which there is a struc- (d) Each price category I firm shall ture, dwelling, or other building. It does submit quarterly reports to the Price not mean land on which roads, water, Commission with information on prices, sewer, or drainage facilities have been costs, and profits in accordance with regconstructed.
ulations issued by the Price Commission.