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(Owner or company officer)

(e) Small retailers-Special rule. Paragraphs (b) and (c) of this section do not apply to retailers with revenues of less than $200,000 annually (determined

without regard to the number of retailing outlets operated by the retailer) who do not operate as retailers on the premises of, or in conjunction with, a retailer with annual revenues of $200,000 or more. However, retailers not subject to paragraphs (b) and (c) of this section must post on each floor of their establishments at least one sign (minimum 22'' x 28''), as specified below, announcing availability of base price information and adhere to paragraph (d) of this section:

BASE PRICE INFORMATION

Information regarding the lawful base price for any item sold by this store may be obtained by submitting a written request to the owner, manager, or operator of this store. You will receive a prompt answer by mail.

[36 F.R. 23976, Dec. 16, 1971, as amended at 37 F.R. 285, Jan. 8, 1972; 37 F.R. 775, Jan. 19, 1972; 37 F.R. 1244, Jan. 27, 1972; 37 F.R. 2842, Feb. 8, 1972]

§ 300.13a

Retail catalogue sales; price posting requirements. (a) General. Each retailer who is engaged in the sale of products through a catalogue printed after April 5, 1972, shall comply, at its option, with either paragraph (b) or paragraph (c) of this section. For the purposes of this section, "catalogue" includes any catalogue, circular, or other printed material, containing at least 50 pages, offering products for sale through a mail order, telephone, or similar system, including sales through facilities involving direct customer contact, such as catalogue sales offices or catalogue desks.

(b) First option. Each retailer shall include in each of its catalogues at least one separate page providing the following base price information:

(1) A description of how its prices are controlled under the Price Stabilization Program.

(2) A statement as to how information regarding the lawful base price for any product in the catalogue may be obtained from the retailer.

(3) Conspicuous identification of each price that is in excess of the base price for the product concerned.

The retailer shall comply with § 300.13 (d) with respect to each request for base price information that it receives pursuant to subparagraph (2) of this paragraph.

(c) Second option. Each retailer shall include in each of its catalogues the following information:

(1) The base prices of those 40 items which accounted for the greatest catalogue dollar sales volume in each catalogue department, in the previous fiscal year, or the base prices of those items which accounted for at least 50 percent of its total catalogue dollar sales in each catalogue department during that year, whichever is less.

(2) A description of how its prices are controlled under the Price Stabilization Program.

(3) A statement as to how information regarding the lawful base price for any product in the catalogue may be obtained.

The retailer shall comply with § 300.13 (d) with respect to each request for base price information that it receives pursuant to subparagraph (3) paragraph.

[37 F.R. 3828, Feb. 23, 1972] § 300.14

of this

Service organizations, other than providers of health services and insurers.

(a) A service organization may charge a price in excess of the base price only to reflect increases in allowable costs that it incurred since the last price increase in the item concerned, or that it incurred after January 1, 1971, whichever was later, and that it is continuing to incur, reduced to reflect productivity gains, and only to the extent that the increased price does no result in an increase in its profit margin over that which prevailed during the base period.

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(a) Definitions. The following definitions apply in this section:

"Public utility" means a person that furnishes utility services to the public or a recognized segment of the public including

(1) A person that furnishes utility services subject to the jurisdiction of a regulatory agency, including those utility service operations of the person that are not subject to the jurisdiction of a regulatory agency;

(2) A government agency or instrumentality that furnishes utility services that would be subject to the jurisdiction of a regulatory agency if furnished by a person other than a government agency or instrumentality; and

(3) A cooperative that furnishes utility services.

"Regulatory agency" means any commission, board, or other legal body that has jurisdiction to order increases or reductions, or both, of the prices charged by a public utility.

"Utility service” means any commodity or service affected with a public interest, including gas, electricity, telephone, telegraph, public transportation by vehicle or pipeline, water, and sewage disposal, but not including water or sewage disposal services furnished by a government agency or instrumentality.

(b) Scope of reporting requirements— (1) Regulated public utilities. Before April 18, 1972, the reporting requirements of this section apply to each price increase by a regulated public utility that is a prenotification firm which would increase that public utility's aggregate annual revenues by more than 1 percent. However, if a regulatory agency furnishes to the Price Commission

(1) A proposal describing the types of price increases subject to its jurisdiction which it believes should not be reported under this section because their inflationary impact would not be significant; and

(ii) A statement of its reasons with respect to each type; and the Price Commission approves the proposal as submitted or as modified by it, then thereafter the reporting requirements of this section will apply only to price increases

which are not exempted under the proposal. In any case in which a proposal or modification thereof has not been approved by the Price Commission, each price increase or proposed price increase by a public utility that is a prenotification firm which occurs after April 18, 1972, shall be reported to the Price Commission as provided in paragraphs (c) through (1) of this section.

(2) Unregulated public utilities. The reporting requirements of this section apply to each price increase by an unregulated public utility that is a prenotification firm which, when cumulated with previous price increases which the public utility has made (including those for which it has applications pending) during its current fiscal year, would increase its aggregate annual revenues by more than 21⁄2 percent.

(c) Price increases to which reporting and certification requirements do not apply. The reporting and certification requirements of this section do not apply to any price increase resulting from the pass-through of specific allowable costs, including taxes (except income taxes) and fuel costs, but not including labor costs, if the increase is not objected to by the appropriate regulatory agency and is authorized by statute, regulation, or order of the appropriate regulatory agency, or by an approved tariff provision.

(d) General. A public utility may charge a price in excess of a final price (a price which is not subject to accounting and refund) in effect on January 16, 1972, only if, within the appropriate period specified in this section for review by the Price Commission, the Commission does not make a negative finding on any of the following:

(1) The increase is cost-based and does not, unless specifically provided otherwise by the Price Commission, reflect future inflationary expectations;

(2) The increase is the minimum required to assure continued, adequate, and safe service or to provide for necessary expansion to meet future requirements;

(3) The increase will achieve the minimum rate of return or profit margin needed to attract capital at reasonable costs and not to impair the credit of the public utility;

(4) The public utility has obtained a certificate in accordance with paragraph (e) of this section, or, in a case to which paragraph (f) of this section applies, it

has self-certified as required by that paragraph; and

(5) In the opinion of the Price Commission, the increase is consistent with the Commission's overall goal of holding average price increases across the economy to a rate of not more than 21⁄2 percent a year.

(e) Regulatory agency certification. With respect to each price increase it approves, each regulatory agency shall certify in the order granting the increase or in a separate document the following: (1) The former price, the new price, and the percentage increase;

(2) The dollar amount of increased revenue which the increase is expected to provide;

(3) The amount by which the increase will increase the utility's profits as a percentage of its total sales;

(4) The amount by which the increase will increase the utility's overall rate of return on capital:

(5) That sufficient evidence was taken in the course of its proceedings to determine whether the criteria set forth in paragraph (d) (1) through (4) of this section are or are not met by the price increase; and

(6) That the price increase does or does not meet those criteria or meets them only to a particular extent, with a statement of reasons why the price increase does or does not meet the criteria or meets them only to a particular extent.

a

(f) Self-certification. Whenever public utility cannot obtain a certification in accordance with paragraph (e) of this section because the public utility is not subject to the jurisdiction of a regulatory agency or for any other reason not in conflict with this section, the public utility may put the increase into effect only after its chief executive officer, under penalty of perjury, certifies to the following:

(1) Why certification under paragraph (e) of this section was not obtained.

(2) A statement, with full explanation, that paragraph (d) (1) through (3) of this section has been complied with.

Each public utility that makes a certification under this paragraph must keep the certification available for inspection upon the reasonable request of any person.

(g) Rate bureaus and conferences. Whenever a price increase is proposed by a ratemaking association (rate-bureau, conference, or similar organization) authorized by law to act on behalf of its members, the regulatory agency or association may base its certification that the proposed increase conforms to paragraph (d) (1) through (3) of this section upon cost or other data compiled on the basis of association or industry averages. However, in such a case, the Price Commission may also require any public utility member of the association to submit any information that the Price Commission considers relevant.

(h) Regulated public utilities—report a request for price increase. Within 5 days after filing a request for a price increase with a regulatory agency, each regulated public utility to which the reporting requirements of this section apply shall report that request to the Price Commission, on a form prescribed by the Commission.

(i) Regulated public utilities—interim report on increases put into effect subject to accounting and refund. (1) At least 15 days before the effective date of a price increase allowed to go into effect by a regulatory agency subject to accounting and refund or by operation of law, each regulated public utility to which the reporting requirements of this section apply shall make an interim report on the increase to the Price Commission, on a form prescribed by the Commission. The report shall include a certification as required by paragraph (f) of this section. The Commission may take any action provided in paragraph (1) of this section until the expiration of 10 days after receiving the report required by paragraph (j) of this section.

(2) However, a public utility is not required to comply with subparagraph (1) of this paragraph if the regulatory agency has furnished a certification in the form required by paragraph (e) of this section, except for subparagraph (5) thereof. The regulatory agency shall furnish such a certification unless it informs the Price Commission that, with respect to the particular price increase, or a class of price increases that includes the particular price increase, the furnishing of such a certification is not feasible because the agency does not have sufficient information, or for other reasons satisfactory to the Price Commission.

(3) Notwithstanding any other provision of this section, no price of the kind covered by this paragraph (i) may be increased before the end of the maximum suspension period permitted by law unless the regulatory agency has certified to the Price Commission that there is good cause for an earlier effective date, together with its reasons therefor, and the Price Commission has approved that certification.

(j) Regulated public utilities—report of approved increases. Within 5 days after receiving final regulatory agency approval of a price increase, each public utility to which the reporting requirements of this section apply shall report the approved increase to the Price Commission on a form prescribed by the Commission, with a copy of the certification required by paragraph (e) of this section and a copy of the agency order approving the increase. During the 10day period following its receipt of the report the Price Commission may take any action provided by paragraph (1) of this section.

(k) Public utilities (regulated or unregulated)-reports of other increases. Each public utility to which the reporting requirements of this section apply shall, whenever it proposes to place a price increase in effect which is not subject to paragraphs (h), (i), or (j) of this section, report that increase to the Price Commission, on a form prescribed by the Commission, at least 30 days before the effective date of the increase, with a copy of the appropriate certificate required by this section. At any time within 10 days after receiving the report, the Price Commission may take any action provided in paragraph (1) of this section, or it may take no action, in which case the increase may go into or remain in effect at the end of that 10-day period.

(1) Price Commission actions. With respect to any price increase by any public utility and within any time limits specified in this section, the Price Commission may

(1) Require the public utility to furnish additional information regarding the increase;

(2) Delay the effective date of the increase pending further Commission action, but not longer than 10 days after the receipt of any information required under subparagraph (1) of this paragraph;

(3) Suspend all or part of the increase, pending further action by the

Price Commission or by the regulatory agency; or

(4) Limit, refuse, rescind, reduce, or modify the increase.

(m) Requirements for public utilities which are not required to report under this section. In the case of a price increase proposed or put into effect by a public utility other than a firm required to report under this section, the Price Commission shall exercise its rights under this paragraph within 10 days after the public utility has received final approval from the regulatory agency for the price increase or within 10 days after the price increase has been placed in effect, whichever is earlier. However, if within the applicable 10-day period the Price Commission notifies the public utility that it needs additional information concerning the increase, these periods are extended until 10 days after the additional information is received.

(n) State and locally owned public utilities-full recovery of costs. Nothing in this section may be construed to prevent a public utility owned by a State or local government, or an agency or instrumentality thereof, from recovering the full costs of furnishing the utility service concerned.

(0) Proposals submitted to the Price Commission. Any regulatory agency may submit to the Price Commission written proposals for changes, deletions, and additions to this section. The submission shall contain the following:

(1) A statement of the problems experienced by it under this section.

(2) Its reasons why this section needs to be changed.

(3) A draft of alternate regulations designed to relieve the problem but to preserve the intended effect of this section.

[37 F.R. 652, Jan. 14, 1972] § 300.18 Institutional

health services.

providers of

(a) Definition. For the purpose of this section, the term “institutional provider of health services" includes any person covered by paragraph (a) of Appendix 1 to this part.

(b) General. Subject to paragraph (c) of this section, an institutional provider of health services may charge a price in excess of the base price with respect to the furnishing of a service only to reflect increases in allowable costs that it incurred since the last price increase in the furnishing of that service, or that it in

curred after January 1, 1971, whichever was later, and that it is continuing to incur, reduced to reflect productivity gains, and only to the extent that the increased price does not

(1) In the case of an institutional provider that is a nonprofit organization, result in an increase in its net revenues (after deducting operating expenses and depreciation) as a percentage of total revenues over that prevailing during the base period; and

(2) In the case of any other institutional provider, result in an increase in its profit margin over that which prevailed during the base period.

(c) Additional limitations. In addition to the limitations set forth in paragraph (b) of this section, no institutional provider of health services may charge a price in excess of the base price, if the effect of the increase, together with any other price changes made by it under the authority of the part, is to—

(1) Increase its aggregate annual revenues by more than 2.5 percent, but not more than 6 percent, over the amount those revenues would have been if only the prices previously authorized for the provider under this part had been charged, unless the provider has

(i) Sent a copy of its revised price schedule to the District Director of Internal Revenue for the district in which the provider is located, with a statement specifying with particularity the increased price or prices involved, the previous price levels for the services affected by the increases, and the increased cost factors that justify the increased prices; and

(ii) Sent a copy of the revised price schedule to the Medicare intermediary that services the geographic area in which the provider is located; or

(2) Increase its aggregate annual revenues by more than 6 percent over the amount those revenues would have been if only the prices previously authorized for the provider under this part had been charged, unless the provider has received an exception from the Price Commission, after applying therefor to the District Director of Internal Revenue with the information required by subparagraph (1)(i) of this paragraph and the recommendation of the State Advisory Board, under the procedures set forth in § 300.511 and those established by the Internal Revenue Service. However, the requirement for the recommendation of the State Advisory Board

does not apply if that Board fails to act on the request for a recommendation within 30 days after receiving it.

(d) Allowable cost increases. Except in any case in which the Price Commission specifically determines otherwise, the following may not be included for the purpose of determining allowable price increases for the purposes of this section:

(1) Aggregate wage and salary increases, including fringe benefits, incurred after November 13, 1971, which exceed 5.5 percent a year.

(2) Aggregate nonwage and nonsalary current expense increases, such as in goods and services purchased, which exceed 2.5 percent a year.

(3) Aggregate expenses for new technology such as new equipment and new services directly related to health care, to the extent they are not charged directly to persons benefiting directly from that equipment of those services, which exceed 1.7 percent of total annual expenses.

For the purposes of subparagraph (1) of this paragraph, “wage" and "salary" do not include contributions by any employer pursuant to a compensation adjustment for any pension, profit sharing, or annuity and savings plan which meets the requirements of section 401(a), 404 (a) (2), or 403(b) of the Internal Revenue Code of 1954; any group insurance plan; or any disability and health plan; until each time as the President determines that the contributions made by such an employer are unreasonably inconsistent with the standards for wage, salary and price increases issued under section 203 (b) of the Economic Stabilization Act of 1970, as amended by the Economic Stabilization Act Amendments of 1971 (Public Law 92-210).

(e) State Advisory Boards designation. The Governor of each State, and the mayor of the District of Columbia with respect to it, is requested to designate a State Advisory Board for considering health services aspects of the Economic Stabilization Program. The board must consist of one of the following organizations, or a suborganization thereof:

(1) An existing statewide hospital commission.

(2) A comprehensive health planning office.

(3) The Medical Care Advisory Committee.

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